Stock Code: 1470

Evertex Fabrinology Limited

Consolidated Financial Statements for the Year Ended December 31, 2025 and 2024 and Independent Auditors’ Review Report

Address: 4F, 64 Ta’Cheng St., 103005 Taipei Taiwan
Tel: (03)322-2241

§TABLE OF CONTENTS§

ITEM		PAGE	NO. OF NOTES TO THE FINANCIAL STATEMENTS
I.	Cover	1	-
II.	Table of Contents	2	-
III.	Independent Auditors’ Report	4~8	-
IV.	Consolidated Balance Sheet	9	-
V.	Consolidated Statements of Comprehensive Income	10~11	-
VI.	Consolidated Statements of Changes in Equity	12	-
VII.	Consolidated Statements of Cash Flows	13~14	-
VIII.	Notes to Financial Statements
	(I) General	15	I
	(II) Date and Procedure for the Approval of Financial Reports	15	II
	(III) Application of Newly Issued and Revised Standards and Interpretations	15~18	III
	(IV) Summary Statement of Major Accounting Policies	18~32	IV
	(V) Main Sources of Uncertainty about Major Accounting Judgements, Estimates and Assumptions	32	V
	(VI) Major Accounting Item Descriptions	33~68	VI~XXIX
	(VII)Related Party Transaction	68~70	XXX
	(VIII)Mortgaged Assets	70	XXXI
	(IX) Significant Contingent Liabilities and Unrecognized Commitments	70	XXXII
	(X) Material Subsequent Events	70	XXXIII
	(XI) Assets and Liabilities Denominated in Foreign Currencies	70~74	XXXIV
	(XII)Others	74~76	-
	(XIII)Other Disclosure
	1. Related information on major transactions	72~73、77~79	XXXV
	2. Related information on reinvestment	72、80	XXXV
	3. Related information on investments in China	72	XXXVI
IX. Informations of Departments		74~76	-

Declaration of Consolidated Financial Statements of Affiliates

The companies required to be included in the Group’s consolidated financial statements of affiliates in accordance with the “Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises” for the year ended December 31, 2025 are the same as the companies required to be included in the consolidated financial statements of parent and subsidiary companies as provided in IFRS 10 "Consolidated Financial Statements." Relevant information that should be disclosed in the consolidated financial statements of affiliates has been disclosed in the consolidated financial statements of parent and subsidiary companies. Hence, no separate set of consolidated financial statements of affiliates would be otherwise prepared.

Hereby certify

Name of the Group: Evertex Fabrinology Limited
Chairman: CHUAN-FA YEH

March 11, 2026

INDEPENDENT AUDITORS' REPORT

Evertex Fabrinology Limited:

Opinion

We have audited the accompanying consolidated financial statements of Evertex Fabrinology Limited (the "Group") and its subsidiaries (collectively referred to as the "Group"), which comprise the consolidated balance sheets as of September 30, 2025 and 2024 and the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and the notes to the consolidated financial statements, including a summary of significant accounting policies.

In the opinion of the accountant, the above entity's financial statements have been prepared in all major respects in accordance with the financial report compilation standards for securities issuers, which are sufficient to express the entity's financial position of Evertex Fabrinology Limited on December 31, 2025 and 2024, and entity's financial performance and entity's cash flows from January 1 to December 31, 2025 and 2024.

Basis of Audit Opinion

The accountant had carried out the inspection in accordance with the rules for checking the financial statements and the auditing standards. The accountant's responsibility under these standards will be further explained in the paragraph of responsibility for the accountant's examination of the entity's financial statements. In accordance with the professional ethics of accountants, the personnel who are subject to the independence standards of the accounting firm have maintained their independence from Evertex Fabrinology Limited and performed other responsibilities of the standards. The accountant believes that sufficient and appropriate audit evidence has been obtained as the basis for expressing the audit opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the year ended December 31, 2025. These matters were addressed in the context of our audit of the consolidated financial

statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

The key audit matter of the Group’s consolidated financial statements for the year ended December 31, 2025 is described as follows:

Authenticity of customers' sales income under specific credit conditions

As the Group is public company, the management is expected to be under pressure to accomplish the projected financial objective, of which operating revenue is one of the important indicators for judging profitability and operating performance, and revenue recognition is more likely to have higher risks. The Group's revenue from sales to specific customers in 2025 has a material effect on the financial statements. Therefore, we determined that the main risk is the validity of the sales revenue from specific customers and therefore, included it as a key audit matter.

For the accounting policy on revenue recognition, please refer to Note 4(12) of the parent company only financial statements. The key audit procedures that we have performed in respect of the key audit matters described above are as follows:

We identify and evaluate the effectiveness of the internal control procedures over sales transactions with respect to the sales revenue from specific customers by understanding the internal control procedures related to sales transactions and by designing internal control procedures that address those risks. We selected samples from the sales records of specific customers to review external shipping documents or customer receipt documents and to confirm the collection of payments, verify that the transaction actually occurred and whether there is no major abnormality in the payment situation.

Other Matter

We have also audited the parent company standalone financial statements of Evertex Fabrinology Limited as of and for the years ended December 31, 2025 and 2024 on which we have issued an unmodified opinion.

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

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China, and for such internal control as management determines is necessary to

enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

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

The governance unit of Evertex Fabrinology Limited (including the audit committee) is responsible for supervising the financial reporting process.

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

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

When checking in accordance with audit standards, the accountant shall use professional judgment and maintain professional doubts. The accountant also performs the following work:

Identify and evaluate the risk of material misrepresentation resulting from fraud or error in the entity's financial statements; design and implement appropriate measures to the assessed risks; and obtain sufficient and appropriate audit evidence to serve as the basis for audit opinions. Because fraud may involve collusion, forgery, deliberate omission, misrepresentation or internal control, the risk of material misrepresentation due to fraud is higher than that caused by error.
Acquire the necessary understanding of the internal controls Related to the audit in order to design appropriate audit procedures in the circumstances, but not for the purpose of expressing the opinion on the effectiveness of internal controls of Evertex Fabrinology Limited.
Assess the appropriateness of accounting policies adopted by

management and the reasonableness of accounting estimates and related disclosures.

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

The items that the accountant communicates with the governance unit include the scope and timing of the planned audit, as well as major audit findings (including significant deficiencies in internal controls identified in the audit process).

The accountant also provides the governance unit with a statement that the personnel of the firm to which the accountant belongs to the independence standard have complied with the professional ethics of accountants of the Republic of China, and communicate with the governance unit all relationships and other items (including relevant protective measures) that may be considered to affect the independence of accountants.

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

The engagement partners on the audits resulting in this independent auditors’ report are Keng-Shi Chang and Chung-Chen Chen.

Deloitte & Touche
Taipei, Taiwan
Republic of China
March 11, 2026

Evertex Fabrinology Limited Corporation and Subsidiaries
Consolidated Balance Sheets
December 31, 2025 and 2024
(In Thousands of New Taiwan Dollars)

Code	Assets	December 31,2025		December 31,2024
		Amount	%	Amount	%
Current Assets
1100	Cash and cash equivalents (Note 4 and 6)	$ 232,883	20	$ 291,257	24
1110	Current financial assets at fair value through profit or loss (Note 4 and 7)	73,075	6	19,023	3
1136	Current financial assets at amortization (Note 4 + 9 + 29)	72,617	6	96,500	8
1140	Contract assets	1,096	-	-	-
1150	Notes receivable (Note 4, 10 and 22)	3,423	-	3,423	-
1170	Accounts receivable (Note 4, 10 and 22)	67,300	6	67,300	6
1200	Other receivables (Note 4 and 10)	1,956	-	1,956	-
130X	Current inventories (Note 4 and 11)	134,880	12	134,880	12
1479	Other current assets (Note 12 and 28)	28,172	3	28,172	3
11XX	Total current assets	615,402	53	615,402	53
Non-current Assets
1517	Non-current financial assets at fair value through other comprehensive income (Note 4 and 8)	2,172	-	6,578	1
1535	Current financial assets at amortization (Note 4 and 9)	110,672	10	110,540	9
1600	Property, plant and equipment (Note 4 + 14 and 29)	352,894	26	379,536	31
1755	Right-of-use Assets (Note 4 and 15)	4,957	1	6,643	1
1760	Investment real estate (Note 4 and 16)	33,810	3	-	-
1780	Intangible assets (Note 4 and 16)	27	-	96	-
1840	Deferred tax assets (Note 4 and 23)	3,684	-	2,017	-
1915	Prepaid equipment (Prepayments for business facilities)	29,223	3	5,369	-
1920	Guarantee deposits paid (Note 4)	2,662	-	2,662	-
1975	Net defined benefit asset (Note 4 and 20)	4,838	-	3,890	-
1990	Other non-current Assets (Note 12)	-	-	32,631	3
15XX	Total non-current Assets	544,939	47	549,962	45
1XXX	Total assets	$ 1,160,341	100	$ 1,212,409	100
Code Liabilities and Equity
Current Liabilities
2100	Short-term borrowings (Notes 17)	$ 25,000	2	$ 30,000	3
2130	Current contract liabilities (Note 4 and 22)	6,935	1	8,833	1
2150	Notes payable (Note 17)	11,981	1	15,120	1
2160	Note payables to related parties (Note 17 and 28)	-	-	2,439	-
2170	Account payable (Note 17)	15,985	1	19,288	2
2180	Account payables to related parties (Note 17 and 28)	-	-	1,312	-
2219	Other payables (Note 18)	67,088	6	68,948	6
2230	Income tax payable (Note 4 and 23)	8,484	1	16,946	1
2280	Current lease liabilities (Note 4 + 15 and 28)	2,874	-	3,463	-
2399	Other current liabilities (Note 4 and 19)	919	-	926	-
21XX	Total current liabilities	139,266	12	167,275	14
Non-current Liabilities
2570	Deferred tax liabilities (Note 4 and 23)	5,406	1	6,906	1
2580	Non-current lease liabilities (Note 4 + 15 and 28)	2,180	-	3,282	-
25XX	Total Non-current Liabilities	7,586	1	10,188	1
2XXX	Total Liabilities	146,852	13	177,463	15
Equity (Note 21)
3110	Capital stock	857,670	74	857,670	71
3200	Capital surplus	7,317	1	7,317	-
Retained earnings
3310	Appropriated as legal capital reserve	73,756	6	64,147	5
3320	Appropriated as special capital reserve	-	-	1,650	-
3350	Unappropriated earnings	75,721	7	102,534	9
3300	Total Retained earnings	149,477	13	168,331	14
3400	Other equity	( 975)	-	1,628	-
3XXX	Total equity	1,013,489	87	1,034,946	85
	Total Liabilities and equity	$ 1,160,341	100	$ 1,212,409	100

(The attached notes form part of the entity's financial statements)

Chairman: CHUAN-FA YEH
President: ANTHONY POLIANG YEH
In-charge Accountant: Chao-Nan, Hsu

Evertex Fabrinology Limited Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income
For the Years Ended December 31, 2025 and 2024
(In Thousands of New Taiwan Dollars, Except Earnings (Loss) Per Share)

Code		2025		2024
		Amount	%	Amount	%
	Net Revenue (Note 4 and 23)
4100	Sales Revenue	$ 672,326	84	$ 651,461	83
4600	Service Revenue	131,384	16	136,578	17
4000	Total Net Revenue	803,710	100	788,039	100
	Cost (Note 11、23 and 29)
5110	Cost of sales	398,449	50	381,808	49
5600	Cost of services	210,857	26	206,848	26
5000	Total Cost	609,306	76	588,656	75
5900	Gross profit from operations	194,404	24	199,383	25
	Operating Expenses (Note 23)
6100	Selling Expenses	79,159	10	79,472	10
6200	Administrative expenses	31,600	4	32,122	4
6450	Expected credit Gain (Note 10)	135	-	421	-
6000	Total Operating Expenses	110,894	14	112,015	14
6500	Gain on disposal of property, plan and equipment (Note23)	12	-	519	-
6900	Operating income	83,522	10	87,887	11
	Non-operating income and expenses(Note 4、23 and 29)
7100	Interest income	11,328	1	13,254	2
7190	Other income	5,664	1	3,282	1
7020	Other gains and losses	( 17,025 )	( 2 )	17,225	2
7050	Finance cost	( 828 )	-	( 948 )	-
7000	Non-operating income and expenses	( 861 )	-	32,813	5
7900	Profit from continuing operations before tax Income before tax	82,661	10	120,700	16
7950	Tax expense (Note 4 and 24)	( 15,396 )	( 2 )	( 23,391 )	( 3 )
8200	Profit from continuing operations	67,265	8	97,309	13
	Other comprehensive income
	Components of other comprehensive income that will not be classified to profit or loss
8311	Losses on remeasurements of defined benefit plans (Note 21)	633	-	240	-

8316	Unrealized Gains from investments in equity instruments measured at fair value through other comprehensive income(Note 22)	( 2,603)	-	1,870	-
8349	Income tax related to components of other comprehensive income that will not be reclassified to profit or loss(Note 4 and 24)	( 127)	-	( 48)	-
8300	Components of other comprehensive income that will not be reclassified to profit or loss	( 2,097)	-	2,062	-
8500	Total comprehensive income	$ 65,168	8	$ 99,371	13
	Net Profit (Loss) Attributable to: Earnings per share(Note 25)
9710	Basic	$ 0.78		$ 1.13
9810	Diluted	$ 0.78		$ 1.13

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

Chairman: Chung-Fa Yeh

President: Anthony Poliang Yeh

In-chargeAccountant: Chao-Nan, Hsu

Evertex Fabrinology Limited
Consolidated Statements of Changes in Equity
For the Years Ended December 31, 2025 and 2024
(In Thousands of New Taiwan Dollars)

Code		Ordinary share	Capital surplus	Retained Earnings			Other equity	Total equity
				Legal reserve	Special reserve	Unappropriated retained earnings (accumulated deficit)	Unrealized gains (losses) on financial assets measured at fair value through other comprehensive income
A1	Balance on January 1, 2024	857,670	7,317	59,225	3,364	59,394	( 1,650)	985,320
	Appropriation of the 2024 earnings (Note 21)
B1	Legal reserve appropriated	-	-	4,922	-	( 4,922)	-	-
B17	Reversal of special reserve	-	-	-	( 1,714)	1,714	-	-
B5	Cash dividends of ordinary share	-	-	-	-	( 49,745)	-	( 49,745)
D1	Net Income of 2024	-	-	-	-	97,309	-	97,309
D3	Other comprehensive income of 2024	-	-	-	-	192	1,870	2,062
D5	Total comprehensive income of 2024	-	-	-	-	97,501	1,870	99,371
T1	Other (Note 21)	-	-	-	-	( 1,408)	1,408	-
Z1	Balance on December 31, 2024	857,670	7,317	64,147	1,650	102,534	1,628	1,034,946
	Appropriation of the 2024 earnings (Note 21)
B1	Legal reserve appropriated	-	-	9,609	-	( 9,609)	-	-
B17	Reversal of special reserve	-	-	-	( 1,650)	1,650	-	-
B5	Cash dividends of ordinary share	-	-	-	-	( 86,625)	-	( 86,625)
D1	Net Income of 2025	-	-	-	-	67,265	-	67,265
D3	Other comprehensive income of 2025	-	-	-	-	506	( 2,603)	( 2,097)
D5	Total comprehensive income of 2025	-	-	-	-	67,771	( 2,603)	65,168
T1	Other (Note 21)	-	-	-	-	( )	-	-
Z1	Balance on December 31, 2025	$ 857,670	$ 7,317	$ 73,756	$ -	$ 75,721	($ 975)	$ 1,013,489

The attached notes form part of the entity's financial statements.

Chairman: CHUAN-FA YEH

President: ANTHONY POLIANG YEH

In-charge Accountant: Chao-Nan, Hsu

Evertex Fabrinology Limited Corporation and Subsidiaries
Consolidated Statements of Cash Flows
For the Years Ended December 31, 2025 and 2024
(In Thousands of New Taiwan Dollars)

Code		2025	2024
	Cash flows from (used in) operating activities, indirect method
A10000	Net Profit before Tax	$ 82,661	$ 120,700
A20010	Income Expense Item
A20100	Depreciation Expense	46,619	50,465
A20200	Amortization expense	69	77
A20300	Expected credit loss (gain) / Provision (reversal of provision) for bad debt expense	135	421
A20400	Net loss (gain) on financial assets or liabilities at fair value through profit or loss	( 406)	( 331)
A20900	Finance costs	828	948
A21200	Interest income	( 11,328)	( 13,254)
A21300	Dividend income	( 2,805)	( 1,489)
A22500	Loss (gain) on disposal of property, plan and equipment	( 12)	( 519)
A23700	Impairment losses (gain) on non-financial assets	( 124)	641
A24100	Unrealized foreign exchange loss (gain)	9,905	( 8,980)
A29900	Lease modification benefit	-	( 3)
A30000	Changes in operating assets and liabilities
A31125	Increase (decrease) in contract assets	( 1,096)	( -)
A31130	Decrease (increase) in note receivable	( 947)	( 127)
A31150	Decrease (increase) in accounts receivable	( 2,316)	( 13,019)
A31180	Decrease (increase) in other receivable	8	( 5)
A31200	Decrease (increase) in inventories	27,992	( 22,781)
A31240	Decrease (increase) in other current assets	4,732	( 9,994)
A31250	Decrease (increase) in Net defined benefit asset	( 315)	( 282)
A32125	Increase (decrease) in contract liabilities	( 1,898)	336
A32130	Increase (decrease) in notes payable	( 3,139)	6,987
A32140	Increase (decrease) in notes payable from related parties	( 2,439)	1,227
A32150	Increase (decrease) in accounts payable	( 3,303)	( 308)
A32160	Increase (decrease) in accounts payable from related parties	( 1,312)	719
A32180	Increase (decrease) in other payable	( 3,770)	11,724
A32230	Increase (decrease) in other current liabilities	( 7)	149
A32240	Net defined benefit liabilities	-	-
A33000	Total changes in operating assets and liabilities	128,268	123,302
A33100	Interest received	909	768
A33300	Interest paid	( 828)	( 988)
A33500	Income taxes refund (paid)	( 27,154)	( 11,735)

AAAA	Net cash flows from (used in) operating activities	101,195	111,347
B00020	Cash flows from (used in) investing activities
B00030	Disposal of financial assets at fair value through other comprehensive income	-	10,170
B00040	Cash receipts from capital reduction of financial assets measured at fair value through other comprehensive income	1,803	-
B00050	Proceeds from disposal of financial assets at amortized cost	(79,116)	(60,365)
B00100	Acquisition of financial assets at fair value through profit or loss	97,585	80,528
B00200	Disposal of financial assets at fair value through profit or loss	(63,256)	-
B02700	Acquisition of property, plant and equipment	4,586	38,473
B02800	Disposal of property, plant and equipment	(13,516)	(24,202)
B03700	Increase in refundable deposits	-	(1)
B04600	Acquisition of intangible assets	-	(64)
B06700	Increase in Other non-current Assets	-	(22,406)
B07100	Acquisition of prepaid equipment	(25,620)	(2,125)
B07500	Interest received	10,607	11,634
B07600	Dividends received	2,805	1,489
BBBB	Net cash flows from (used in) investing activities	(64,110)	33,650
C00200	Cash flows from (used in) financing activities
C04020	Depayment of the principal portion of lease liabilities	(3,910)	(4,149)
C04500	Cash dividends paid	(86,625)	(49,745)
C09900	Exercising the right of imputation	-	-
CCCC	Net cash flows from (used in) financing activities	(95,535)	(58,894)
DDDD	Effect of exchange rate changes on cash and cash equivalents	76	3,120
EEEE	Net increase (decrease) in cash and cash equivalents	(58,374)	89,223
E00100	Cash and cash equivalents at beginning of period	291,257	202,034
E00200	Cash and cash equivalents at end of period	$ 232,883	$ 291,257

Chairman: CHUAN-FA YEH
President: ANTHONY POLIANG YEH
In-charge Accountant: Chao-Nan, Hsu

Evertex Fabrinology Limited and Subsidiaries
Notes to Consolidated Financial Report
January 1 to December 31, 2025 and 2024
(Unit: NT$ Thousands, unless specified otherwise)

I. General

EVERTEX FABRINOLOGY LTD. (hereinafter referred to as "the Group") was established in December 1986 under the original name of "Evertex Dyeing & Finishing Ltd." and was renamed to "EVERTEX FABRINOLOGY LTD." by the resolution of the shareholders' meeting held on June 29, 2018. The Group is engaged in the business of dyeing and finishing all kinds of textile products. In April 1996, the Group introduced the business of purchasing raw fabrics for dyeing and finishing and then selling them in order to stabilize the supply of dyeing and finishing materials.

The Group's shares have been listed and traded on the Taiwan Stock Exchange since May 21, 1999.

The consolidated financial statements are expressed in New Taiwan dollars, the functional currency of the Group.

II. Date and Procedure for the Approval of Financial Reports

The consolidated financial report was approved by the board of directors on March 9, 2026.

III. Application of Newly Issued and Revised Standards and Interpretations

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

The application of the amended IFRSs endorsed and issued Into effect by the FSC did not result in significant changes on the accounting policies of the Group.

(II) The IFRSs endorsed by the FSC for application starting from 2026

New/Revised/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 concerning "Contracts involving natural electricity"	January 1, 2026
"Annual Improvements to IFRS Accounting Standards - Volume 11"	January 1, 2026
IFRS 17 "Insurance Contracts" (including the 2020 and 2021 amendments)	January 1, 2023

As of the date the financial statements were authorized for issue, the Group has assessed that the application of other standards and interpretations will not have a material impact on the Group’s financial position and financial performance.

(III) IFRSs in issue but not yet endorsed and issued into effect by the FSC

New/Revised/Amended Standards and Interpretations	Effective Date Announced by IASB (Note1)
Amendments to IFRS 10 and IAS 28: “Sale or investment of assets between an investor and its affiliates or joint ventures”	Undecided
IFRS 18 "Presentation and Disclosure in Financial Statements"	January 1, 2027 (Note2)
IFRS 19 "Subsidiaries without Public Accountability: Disclosures"	January 1, 2027
IAS 21 Amendment: "Converted to a highly inflated currency"	January 1, 2027

Note1: Unless stated otherwise, the above new/revised/amended IFRSs are effective for annual reporting periods beginning on or after their respective effective dates.

Note2: On September 25, 2023, the Financial Supervisory Commission (FSC) announced that Taiwanese companies should adopt IFRS 18 from January 1, 2028, but may choose to adopt it earlier if the FSC approves IFRS 18.

IFRS 18 “Presentations and Disclosures in Financial Statements”

IFRS 18 will replace IAS 1 "Presentation of Financial Statements". The main changes in this standard include:

The income statement should classify income and expense items into operating, investing, financing, income tax and discontinued operations.
The profit and loss statement should present operating profit and loss, profit and loss before financing and tax, and the subtotals and total of profit and loss.
Guidance is provided to strengthen aggregation and segmentation requirements: a consolidating company is required to identify assets, liabilities, equity, income, losses and cash flows arising from individual transactions or other events and to classify and aggregate them on the basis of common characteristics so that each line item presented in the principal financial statements has at least one similar characteristic. Items with non-similar characteristics should be separated in the primary financial statements and notes. The Merging Company will only label such items as "other" when it is unable to find a more informative label.
Increase disclosure of management-defined performance measures: When the combined company conducts public communications outside the financial statements and communicates management's views on a certain aspect of the combined company's overall financial performance to users of the financial statements, it should disclose relevant information on management-defined performance measures in a single note to the financial statements, including a description of the measure, how it is calculated, its reconciliation with the subtotals or totals specified in IFRS accounting standards, and the income tax and non-controlling interest effects of the related reconciling items.

In addition to the above impacts, as of the date of approval and issuance of these consolidated financial statements, the Merger Company is still evaluating the other impacts of the amendments to the above standards and interpretations on its financial position and

financial performance, and the relevant impacts will be disclosed when the evaluation is completed.

IV · Summary Statement of Major Accounting Policies

(I) Compliance Statement

This individual financial report is prepared in accordance with the financial report preparation standards of securities issuers.

(II) Basis of Preparation

Except for financial instruments measured at fair value and net defined benefit liabilities based on the present value of determined benefit obligations less the fair value of plan assets, this individual financial report is prepared on a historical cost basis.

Fair value measurement is divided into levels 1 to 3 according to the observability and importance of the relevant input values:

Level 1 input value: refers to the quoted price in the active market for the same assets or liabilities available on the measurement date (unadjusted).
Level 2 input value: refers to the observable input value of assets or liabilities directly (i.e. price) or indirectly (i.e. from price derivation) in addition to the quotation at level 1.
Level 3 input value: refers to the unobservable input value of assets or liabilities.

(III) Standards for distinguishing between current and non-current assets and liabilities

Current assets include:

(1) Assets held primarily for trading purposes;
(2) Assets expected to be realized within 12 months after the balance sheet date; and
(3) Cash and cash equivalents (excluding cash equivalents that are restricted from being used to exchange or settle liabilities more than 12 months after the balance sheet date).

Current liabilities include:

(1) liabilities held primarily for trading purposes;

(2) Liabilities that are due for payment within 12 months after the balance sheet date (even if a long-term refinancing or payment rescheduling agreement is completed between the balance sheet date and the issuance of the financial statements, they are considered current liabilities); and

(3) Liabilities that do not have a substantive right to defer settlement for at least 12 months after the balance sheet date. Assets that do not fall under the above-mentioned current assets or current liabilities are classified as non-current assets or non-current liabilities.

Those that are not the above-mentioned current assets or liabilities shall be classified as non-current assets or non-current liabilities.

(IV) Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Group and the entities controlled by the Group (i.e., its subsidiaries, including structured entities).

When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those of the Group.

The financial statements of the subsidiaries have been appropriately adjusted to bring its accounting policies in line with those of the merged group.

For the details, shareholding ratio and business items of subsidiaries, please refer to Table 4 of Note 13.

(V) Foreign Currency

In preparing the financial statements of each individual entity in the Group, transactions in currencies other than the entity's functional currency (i.e. foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.

At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Exchange differences on monetary items arising from settlement or

translation are recognized in profit or loss in the period in which they arise.

Non monetary items measured at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Exchange differences arising on the retranslation of non monetary items are included in profit or loss for the year except for exchange differences arising on the retranslation of non monetary items in respect of which gains and losses are recognized directly in other comprehensive income, in which case, the exchange differences are also recognized directly in other comprehensive income.

Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.

(VI)Inventory

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

(VII)Immovable Property, Plant and Equipment

Immovable property, plant and equipment are recognized as measured by cost, and subsequently measured by the amount of cost less accumulated depreciation and accumulated impairment loss.

Except for self-owned land, depreciation is provided on a straight-line basis, that is, the balance after the cost of the asset is equally apportioned less salvage value within the expected useful life of the asset, the estimated useful life, salvage value and depreciation methods are reviewed at least on the end date of each year. The impact of changes in accounting estimates is dealt with in a deferred manner.

When immovable property, plant and equipment are excluded, the related costs, accumulated depreciation and accumulated impairment are deducted from the account, and the resulting profit or loss is recognized in the current year's profit or loss according to its nature.

(VIII) Investment real estate

Investment property is real estate held for the purpose of earning rental income or capital appreciation, or both. Investment property also includes land whose future use has not yet been determined.

Owner-owned investment properties are originally measured at cost (including transaction costs) and subsequently at cost less accumulated depreciation and accumulated impairment losses.

Investment properties are depreciated on a straight-line basis.

When an investment property is removed from the balance sheet, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss.

(IX) Intangible assets

Intangible assets acquired separately

Intangible assets with finite useful lives that are acquired separately are initially measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment loss. Amortization is recognized on a straight-line basis. The estimated useful life, residual value, and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimates accounted for prospective basis.

Derecognition of intangible assets

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

(X) Impairment of property, plant and equipment, right-of-use asset, Investment real estate and intangible assets

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

The recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount, with the resulting impairment loss recognized in profit or loss.

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

(XI) Financial Instruments

Financial assets and financial liabilities are recognized in the individual balance sheet when the group becomes a party to the contract terms of the instrument.

When financial assets and financial liabilities are originally recognized, if financial assets or financial liabilities are not measured at fair value through profit or loss, they are measured by fair value plus transaction costs directly attributable to the acquisition or issue of financial assets or financial liabilities. Transaction costs directly attributable to the acquisition or issue of financial assets or financial

liabilities measured at fair value through profit or loss are immediately recognized as profit or loss.

Financial Assets

The customary transactions of financial assets are recognized and excluded by The customary transactions of financial assets are recognized and excluded by accounting on the trading day.

(1) Measurement categories

Financial assets are classified into the following categories: financial assets at FVTPL, financial assets at amortized cost and investments in equity instruments at FVTOCI.

A. Financial Assets Measured at Fair Value through Profit or Loss

Financial assets measured at fair value through profit and loss include mandatory fair value through profit and loss and financial assets designated as fair value through profit and loss. Mandatory financial assets measured at fair value through profit or loss include equity instrument investments that the am alagamating company has not specified to be measured at fair value through other comprehensive profit and loss, and debt instrument investments that are not classified as measured at amortized cost or measured at fair value through other comprehensive profit and loss.

Financial assets measured at fair value through profit and loss are the dividends generated by fair value measurement, that are recognized in other income, and the benefits or losses generated by the remeasurement are recognized in other income and loss. (excluding any dividend or interest generated by the financial asset) Please refer to Note 28 for the method of determining fair value.

B. Financial assets measured at amortized cost

Financial assets that meet the following conditions are subsequently measured at amortized cost:

a. The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and

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

Financial Assets Measured at Amortized Cost (Including cash and approximately equivalent cash, receivables at amortized cost and foreign corporate bonds) after original recognition, it is measured by the total carrying amount determined by the effective interest method less the amortized cost of any impairment loss, any gain or loss on foreign currency exchange is recognised as profit or loss.

Interest income is calculated by applying the effective interest rate to the gross carrying amount of such a financial asset, except for:

a. Purchased or originated credit-impaired financial assets, for which interest income is calculated by applying the credit-adjusted effective interest rate to the amortized cost of such financial assets; and

b. Financial assets that have subsequently become credit-impaired, for which interest income is calculated by applying the effective interest rate to the amortized cost of such financial assets.

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

C. Investment in equity instruments measured at fair value through other comprehensive gains and losses

At the time of the original recognition, the group may make an irrevocable option to invest in equity instruments

that are not held for transaction and which are not recognized by the acquirer of the business merger as a consideration, and specify that they are measured at fair value through other consolidated profits and losses.

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

Shares invested through other equity instruments measured at fair value through other consolidated income instruments are recognized in profit or loss when the right to receive money from the group is established, unless the dividend clearly represents the recovery of part of the investment cost.

(2) Impairment of Financial Assets

At each balance sheet date, the group assesses the impairment losses with expected credit losses on Financial Assets Measured at Amortized Cost.

Accounts receivable are recognized as allowance losses according to the expected credit losses during the period of existence. Other financial assets first assess whether the credit risk has increased significantly since the original recognition, and if it has not increased significantly, the allowance loss will be recognized as the expected credit loss of 12 months, and if it has increased significantly, the allowance loss will be recognized as the expected credit loss during the period of existence.

Expected credit loss is a weighted average credit loss weighted by the risk of default. The 12-month expected credit loss represents the expected credit loss arising from the possible default of the financial instrument within 12 months

after the reporting date, the expected credit loss during the period of existence represents the expected credit loss of all possible default events of the financial instrument during the expected period.

For internal credit risk management purposes, the Group determines that the following situations indicate that a financial asset is in default without taking into account any collateral held by the Group:

A. Internal or external information show that the debtor is unlikely to pay it's creditors.

B. When a financial asset is more than 180 days past due unless the Group has reasonable and corroborative information to support a more lagged default criterion.

The impairment loss of all financial assets is recognized in profit or loss by a reduction in their carrying amounts through a loss allowance account.

(3) Exclusion of Financial Assets

The Group derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

When Financial Assets Measured at Amortized Cost is excluded as a whole, the difference between its carrying amount and the consideration received is recognized as profit or loss. When investment in equity instruments measured at fair value through other comprehensive profit or loss is excluded as a whole, the accumulated profit or loss is transferred directly to retained earnings and is not reclassified as profit or loss.

Financial liabilities

(1) Subsequent measurement

All financial liabilities are measured at amortized cost using the effective interest method.

(2) Derecognition of financial liabilities

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

(XII) Revenue recognition

After identifying the performance obligations in the client contract, the group apportion the transaction price among the performance obligations and recognize the income when the performance obligations are met.

(1) Revenue from Commodity Sales

Revenue from sales of goods is mainly derived from the sale of fabric. The Group recognizes revenue and accounts receivable at the time when the fabric is shipped to the customer's designated location or when the customer has the right to set the price and use the product and bears the risk of obsolescence of the product. Prepayments for the sale of goods are recognized as contractual liabilities before the goods are shipped. Based on historical experience and considering different contract terms, the Group recognizes a refund liability (recorded as other current liabilities) based on the estimated sales returns and discounts that may occur. When supplying materials for processing, control of the processed goods is not transferred, in which case it is not recognized as revenue.

When supplying materials for processing, control of the processed goods is not transferred, in which case it is not recognized as revenue.

(2) Provision of services

Service income is the revenue generated from the provision of services according to a contract and is recognized proportionately with the degree of completion of services under a contract. The degree of completion of the contract is determined by the following method:

Revenue from dyeing and finishing is recognized when the services are performed, the amount of revenue can be measured reliably and it is likely to be recognized when economic benefits are generated.

(3) Electricity sales revenue

Recognition on a monthly basis after the power is transmitted to the substation at Taipower.

(XIII) Lease

The Group evaluates whether the contract belongs to (or includes) the lease on the date of establishment of the contract. For a contract that contains a lease component and non-lease components, the Group allocates the consideration in the contract to each component on the basis of the relative stand-alone price and accounts for each component separately.

The Group is the lessor

When the lease terms transfer almost all risks and rewards attached to the ownership of the asset to the lessee, they are classified as financial leases. All other leases are classified as operating leases.

The Group as lessee

The Group recognizes right-of-use assets and lease liabilities for all leases at the commencement date of a lease, except for short-term leases and low-value asset leases accounted for by applying a recognition exemption where lease

payments are recognized as expenses on a straight-line basis over the lease terms.

The right-of-use asset is initially measured at cost and subsequently measured at cost less accumulated depreciation and accumulated impairment losses, adjusted for remeasurement of the lease liability.

The straight-line basis of the right-to-use asset is depreciated earlier from the start of the lease to the expiration of the useful life or the expiration of the lease period.

The lease liability is originally measured by the present value of the lease payment (including fixed payment and substantial fixed payment). If the implied interest rate of the lease is easily determined, the lease payment shall be discounted at that rate. If the interest rate is not easy to determine, use the lessee to increase the borrowing rate.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, and interest expense recognized over the lease terms. When there is a change in a lease term, a change in the amounts expected to be payable under a residual value guarantee, a change in the assessment of an option to purchase an underlying asset, or a change in future lease payments resulting from a change in an index or a rate used to determine those payments, the Group remeasures the lease liabilities with a corresponding adjustment to the right-of-use-assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. Lease liabilities are presented on a separate line in the consolidated balance sheets.

(XIV) Government Subsidy

The government subsidy shall be recognized only if it is reasonably confident that the Group will comply with the conditions attached to the government subsidy and will be able to receive the subsidy.

Government grants related to revenue are recognised on a systematic basis as a reduction in relevant costs in the period in which the relevant costs are recognised as an expense by the amalgamating company

If the government subsidy is used to compensate for expenses or losses that have been incurred, or for the purpose of providing immediate financial support to the merged company and there are no future related costs, it will be recognized as profit or loss during the period in which it can be collected.

(XV) Employee benefits

Short-term employee benefits

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

Retirement benefits

To determine that the pension allocated to the retirement scheme is recognized as an expense during the period of service provided by the employee.

o determine the defined benefit cost of a welfare retirement plan (including service cost, net interest and remeasurement) is an actuary based on the projected unit welfare method. Service costs (including current service costs and net interest on net defined benefit liabilities) are recognized as employee welfare expenses when incurred. Remeasures (including actuarial gains and losses and compensation for plan assets after deducting interest) are recognized in other consolidated profit or loss and included in other equity at the time of occurrence and are not reclassified to profit or loss in subsequent periods.

The net defined benefit liability is the appropriation deficit of the defined welfare retirement plan. Any surplus resulting from this calculation is limited to the present value of any refunds from the plans or reductions in future contributions to the plans.

(XVI) Borrowing Cost

The borrowing cost directly attributable to the acquisition, construction or production of an asset (that is, assets that must take a

considerable period of time to reach their intended use or sale status) that meets the requirements shall be part of the cost of the asset until almost all necessary activities for the intended use or sale of the asset have been completed.

Apart from the above, all other borrowing costs are recognized as profit or loss in the current year.

(XVII) Income tax

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

Current Income Tax

The Group determines its current income (losses) according to the regulations established by the governing authority of each income tax reporting region and calculates the income tax payable (recoverable) accordingly.

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

Adjustments to the income tax payables in prior years are accounted for as the current income tax

Deferred Income Tax

Deferred income tax is calculated on the basis of the temporary difference between the carrying amount of assets and liabilities and the tax basis on which taxable income is calculated.

Deferred income tax liabilities are generally recognized for all taxable temporary differences, while deferred income tax assets are recognized when taxable income tax credits are likely to be used to deduct temporary differences.

The carrying amount of deferred income tax assets is re-examined on each balance sheet date, and the carrying amount is reduced for those who are no longer likely to have sufficient taxable places to recover all or part of the assets. Assets that were not previously recognized as deferred income tax assets will also be re-examined on each balance sheet date, and the carrying amount will be increased if

the taxable assets will be able to recover all or part of the assets in the future.

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

Current and Deferred Income Tax

Current and deferred income tax are recognized as profit or loss, but current and deferred income tax related to items recognized in other consolidated profit or loss are recognized as other consolidated profit or loss.

V. Main Sources of Uncertainty about Major Accounting Judgements, Estimates and Assumptions

When adopting accounting policies, the management must make relevant judgments, estimates and assumptions based on historical experience and other relevant factors for those who are difficult to obtain relevant information from other sources. The actual results may differ from the estimates.

The group takes the economic impact of COVID-19 epidemic into consideration of material accounting estimates, and management will continue to review the estimates and basic assumptions. If the revision of the estimate affects only the current period, it is recognized in the current period of the revision; if the revision of the accounting estimate affects both the current and future periods, it is recognized in the current and future periods of the revision.

The management of the Group evaluated that there were no critical accounting judgments or estimation uncertainty on the accounting policies, estimates and basic assumptions that were adopted by the Group.

VI. Cash and Cash Equivalents

	December 31, 2025	December 31, 2024
Cash	$ 261	$ 213
Bank Check and Current Deposit	165,311	140,233
Cash Equivalents
Bank fixed deposit with original maturity date within 3 months	67,311	150,811
	$ 232,883	$ 291,257

The market interest rates for bank demand deposit and bank fixed deposit with original maturity date within 3 months commercial promissory notes at the balance sheet date are as follows:

	December 31, 2025	December 31, 2024
Bank demand deposit	0.001%~0.705%	0.005%~0.90%
Bank fixed deposit with original maturity date within 3 months	1.23%~3.60%	4.15%~4.36%

VII. Financial instruments measured at fair value through profit or loss

	December 31, 2025	December 31, 2024
Financial Assets-Current
Compulsory measurement at fair value through profit or loss
Non-derivative Financial
-Fund benefit certificate	$ 11,171	$ 19,023
- Domestic Listed (OTC) Stocks	61,904	-
	$ 73,075	$ 19,023

VIII. Financial Assets Measured at Fair Value through Other Consolidated Profit or Loss

Equity Instrument Investment:

	December 31, 2024	December 31, 2023
Non-Current
Foreign Investment
Bright Wisdom Holdings Limited	$ 2,172	$ 6,578

The group invests for medium- and long-term strategic purposes and expects to make a profit through long-term investment. The management of the group considers that the short-term fair value fluctuations of these investments are inconsistent with the aforementioned long-term investment planning if they are included in profit or loss, and therefore

choose to designate these investments to be measured at fair value through other comprehensive profits and losses.

IX. Financial Assets Measured at Amortized Cost

	December 31, 2025	December 31, 2024
Current
Domestic investment
Time deposits with original maturities of less than 3 months	$ 68,970	$ 96,000
Restricted assets	500	500
Foreign investment
U.S. government debt	-	-
Corporate bonds	3,147	-
	$ 72,617	$ 69,500
Noncurrent
Foreign investment
U.S. government debt	$ 13,509	$ 7,381
Corporate bonds	97,163	103,159
	$ 110,672	$ 110,540

(I) The interest rates on time deposits and restricted assets with original maturities of more than 3 months at the end of the reporting period were as follows:

	December 31, 2024	December 31, 2023
Time deposits with original maturities of less than 3 months	1.195%~1.7%	1.58%~1.7%
Restricted assets	1.650%	1.525%

Restricted assets are time deposits that purchase in as security from firm. Please refer to Note 30.

(II) The group acquired foreign corporate bonds and government bonds for NT$13,146,000 and NT$60,365,000 respectively from January 1 to December 31, 2025 and 2024, with effective interest rates of 3.89%~6.94% and 4.29%~5.37% respectively.

(III) In 2025, the Group received a disposal proceeds of NT$4,585,000 due to the maturity of foreign corporate bonds.

(IV) For information related to the Group’s investment in foreign corporate bonds and government bonds, please refer to Schedule 2 of

Note 32, "Securities held at the end of the period (excluding investment in subsidiaries, affiliated enterprises and joint venture interests)".

(V) The group only invests in debt instruments whose credit rating is above investment grade (inclusive) and the derogation assessment is of low credit risk, and the credit rating information is provided by independent rating agencies. The Group continues to track external rating information to monitor changes in credit risk of invested debt instruments, and to review other information such as bond yield curve and significant information on debtors, in order to assess whether the credit risk of investment in debt instruments has increased significantly since the original recognition.

The group takes into account the current financial position of the debtors and the forecast of the prospects of their industries to measure the expected credit loss of 12 months or the duration of the investment in debt instruments.

The current credit risk rating mechanism of the Group is as the following:

Credit Rating	Definition	Basis for Recognizing ECLs
Normal	The credit risk of the debtor is low, with sufficient solvency for the contractual cash flow	12-month expected credit losses
Abnormal	The credit risk has been significantly increased since initial recognition	Lifetime expected credit losses (credit not impaired)
Default	Evidence of credit loss exists	Lifetime expected credit losses (credit-impaired)
Write Off	The available proof showed that the debtor was suffering serious financial difficulties and it was impossible for the merged company to expect recoverability	Direct Write Off

The total carrying amounts of the debt instrument investments of each credit rating, and the applicable ECL rates are as the following: December 31, 2025

| Credit Rating | Expected Credit Loss (ECL) | Total of Carrying Amount
Instruments carried at amortized cost |
| --- | --- | --- |
| Normal | 0% | $ 113,819 |
| Abnormal | - | - |
| Default | - | - |
| Write Off | - | - |

December 31, 2024

| Credit Rating | Expected Credit Loss (ECL) | Total of Carrying Amount
Instruments carried at amortized cost |
| --- | --- | --- |
| Normal | 0% | $ 110,540 |
| Abnormal | - | - |
| Default | - | - |
| Write Off | - | - |

As of December 31, 2025, the Group assessed that the credit risk of the debtor was low and had sufficient capacity to repay the cash flow of the contract, so the expected credit loss was not mentioned.

X. Notes Receivables, Account Receivables and Other Receivables

	December 31, 2025	December 31, 2024
Note Receivable
Measured at Amortized Cost
Total Book Valu	$ 3,423	$ 2,476
Minus: Allowance for Loss	-	-
	$ 3,423	$ 2,476
Account Receivable
Measured at Amortized Cost
Total Book Valu	$ 68,106	$ 65,603
Minus: Allowance for Loss	( 806 )	( 671 )
	$ 67,300	$ 64,932
Other Receivable
Interest Receivable	$ 1,956	$ 2,006
Others	-	8
	$ 1,956	$ 2,014

(I) Note Receivable and Account Receivable

Before accepting a new customer, the Group evaluates the credit rating and sets the credit limit for that potential customer. Customer credit limits

and ratings are reviewed annually on an occasional basis. The average credit period for sales of goods and dyeing and finishing is 60 days.

The IFRS 9 simplified approach is adopted by the Group to recognize an allowance for losses on notes receivable and accounts receivable based on lifetime expected credit losses. The lifetime expected credit losses is calculated by using the reserve matrix, which examines the past default records of customers and their current financial situation, the economic situation, the GDP forecast, and the industry outlook. The historical experience of the Group's credit loss history has shown that the loss patterns of different customer have not significantly different from the loss patterns. Therefore, the provision matrix is not further differentiated in the client base. Only the number of days for notes receivable and accounts receivable are used for setting the expected credit loss rate.

The Group directly writes off related notes receivable and accounts receivable when there is evidence indicating that the debtor is experiencing in severe financial difficulty and there is no realistic prospect of recovery by the Group. For example, the debtor is in liquidation. The Group continues to engage in enforcement activity, and the recovered amounts are recognized as profit or loss.

The Group measures the allowance loss of notes receivable according to the reserve matrix as follows:

| | December 31, 2024
Within 120 days of
account opening | December 31, 2023
Within 120 days of
account opening |
| --- | --- | --- |
| Expected Credit Loss Rate | 0% | 0% |
| Total Book Value | $ 3,423 | $ 2,476 |
| Allowance for Loss
(Expected Credit Loss
During the Period of
Existence) | __ | __ |
| Amortized Cost | $ 3,423 | $ 2,476 |

The following table details the loss allowance of trade receivables based on the Group's provision matrix:

December 31, 2025

	Within 30 days	31 to 60 days	61 to 90 days	91 to 120 days	121 to 150 days	151 to 180 days	181 to 210 days	Total
Expected credit loss rate	0.17%	0.75%	8.12%	70.33%	80.80%	74.38%	100%
Total Book Value	$54,139	$11,411	$2,021	$25	$260	$51	$199	$68,106
Loss allowance (Lifetime
ECLs)	(92)	(8)	(164)	(18)	(210)	(38)	(199)	(806)
Amortized cost	$54,047	$11,321	$1,857	$7	$50	$13	$-	$67,300
	Within 30 days	31 to 60 days	61 to 90 days	91 to 120 days	121 to 150 days	151 to 180 days	181 to 210 days	211 to 240 days
---	---	---	---	---	---	---	---	---
Expected credit loss rate	0.11%	1.53%	8.04%	28.49%	50.79%	72.59%	100%	100%
Total Book Value	$ 43,384	$ 19,971	$ 1,913	$ 70	$ 241	$ 16	$-	$-
Loss allowance (Lifetime
ECLs)	(49)	(206)	(154)	(20)	(122)	(12)	$-	$-
Amortized cost	$ 43,335	$ 19,665	$ 1,759	$ 30	$ 119	$ 4	$-	$-

The movements of the loss allowance of accounts receivable were as follows:

	2025	2024
Beginning balance	$ 671	$ 252
Add: Amounts recognized	135	421
Less: Amounts written off	-	-
Less: Net remeasurement of loss allowance	-	( 2 )
Ending balance	$ 806	$ 671

Refer to Note 29. disclosure for details of the Group's concentration of credit risk of accounts receivable as of December 31, 2025 and 2024.

(II) Other receivables

Other receivables are mainly interest receivable. The Group's policy is to trade solely by reputable company. The Group determines whether credit risk has increased significantly since initial recognition and measures the loss allowance for other receivables by continuous monitoring of the debtor, with reference to the past default experience of the debtor and an analysis of the debtor's current financial position. As of December 31, 2025 and 2024, the Group assessed that the expected credit loss rate of other receivables was 0%.

XI. Inventory

	December 31, 2025	December 31, 2024
Raw materials	$ 80,350	$ 88,174
Work in process	47,888	65,289
Finished goods	2,324	4,772
Materials	4,318	4,513
	$ 134,880	$ 162,748

The nature of operating costs related to inventories is as follows:

	2025	2024
Cost of inventories sold	$ 580,395	$ 547,655
Inventory depreciation (recovery benefit) loss	( 124 )	641
Unallocated manufacturing overhead	24,981	36,607
Revenue from sale of leftovers and scrap	( 649 )	( 858 )
	$ 604,603	$ 584,045

The rebound in the net realizable value of inventories was mainly due to the increase in the selling prices of inventories in 2025.

XII. Other assets

	December 31, 2025	December 31, 2024
Current
Payment in advance	$ 16,143	$ 13,448
Prepaid expense	9,420	4,820
Tax credit	1,833	3,181
Provisional payment	776	2,048
	$ 28,172	$ 23,497
Non-current
Long-term Prepayments	$ -	$ 32,631

XIII. Subsidiaries

Subsidiaries included in the consolidated financial statements

The main preparation for this consolidated financial statement is as follows:

XIV. Property, Plant and Equipment

	Self-owned Land	Buildings	Machinery Equipment	Transportation equipment	Other Equipment	Total
Cost
Balance on January 1, 2024	$ 174,044	$ 343,326	$ 523,538	$ 5,374	$ 233,037	$1,279,319
Additions	-	-	9,931	3,698	1,798	15,427
Disposals	-	-	( 20,633 )	( 333 )	( 11,061 )	( 32,027 )
Reclassification (Remark)	-	-	-	-	-	-
Balance on December 31,2024	$ 174,044	$ 343,326	$ 512,836	$ 8,739	$ 223,774	$1,262,719
Accumulated depreciation
Balance on January 1, 2024	$ -	$ 310,688	$ 401,320	$ 5,160	$ 182,615	$ 899,783
Depreciation expense	-	4,805	26,478	788	9,998	42,069
Disposals	-	-	( 20,633 )	( 333 )	( 11,061 )	( 32,027 )
Balance on December 31,2024	$ -	$ 315,493	$ 407,165	$ 5,615	$ 181,552	$ 909,825
Net balance on December 31,2024	$ 174,044	$ 27,833	$ 105,671	$ 3,124	$ 42,222	$ 352,894
Cost
Balance on January 1, 2023	$ 174,044	$ 342,470	$ 510,603	$ 6,621	$ 230,980	$1,264,718
Additions	-	856	15,332	-	2,157	18,345
Disposals	-	-	( 3,848 )	( 1,247 )	( 100 )	( 5,195 )
Reclassification (Remark)	-	-	1,451	-	-	1,451
Balance on December 31,2023	$ 174,044	$ 343,326	$ 523,538	$ 5,374	$ 233,037	$1,279,319
Accumulated depreciation
Balance on January 1, 2023	$ -	$ 305,609	$ 375,045	$ 6,041	$ 172,011	$ 858,706
Depreciation expense	-	5,079	30,123	366	10,704	46,272
Disposals	-	-	( 3,848 )	( 1,247 )	( 100 )	( 5,195 )
Balance on December 31,2023	$ -	$ 310,688	$ 401,320	$ 5,160	$ 182,615	$ 899,783
Net balance on December 31,2023	$ 174,044	$ 32,638	$ 135,558	$ 214	$ 50,422	$ 379,536

Note. The balance is transferred from the prepaid equipment payment.

The Group did not capitalize interest in 2025 and 2024.

There is no an indication that the property, plant and equipment may be impaired in 2025 and 2024.

The immovable property, plant and equipment of the Group are determined on the basis of cost and depreciated on the basis of the following durable years:

Buildings
Main Building of Factory
26-40 years
Storehouse
10-26 years
Others
3-25 years
Machinery Equipment
3-20 years
Transportation Equipment
3-5 years
Other Equipment

Office Equipment 3-15 years
Land Improvement 10-15 years
Dormitory Equipment 15-40 years
Other Equipment 3-15 years

Please refer to Note 31 for the amount of real estate and factory buildings set by the consolidated company as a guarantee for the loan amount.

XV. Lease Arrangement

(I) Right-of-use Assets

	December 31, 2025	December 31, 2024
Right-of-use assets Carrying amount
Buildings	$ 1,528	$ 2,037
Transportation Equipment	1,229	3,335
Other Equipment	2,200	1,271
	$ 4,957	$ 6,643
	2025	2024
Additions to right-of-use assets	$ 2,219	$ 696
Cancellation and accounting for right-of-use assets	$ -	$ 250
Depreciation charge for right-of-use assets
Buildings	$ 509	$ 509
Transportation Equipment	2,106	2,106
Other Equipment	1,290	1,578
	$ 3,905	$ 4,193

(II) Lease liabilities

	December 31, 2025	December 31, 2024
Lease liabilities Carrying amount
Current	$ 2,874	$ 3,463
Non-current	$ 2,180	$ 3,282

Discount rates for lease liabilities were as follows:

	December 31, 2025	December 31, 2024
Buildings	2.06%	2.1%
Transportation Equipment	2.19%	2.19%
Other Equipment	1.15%~2.43%	1.15%~2.33%

(III) Material leasing activities and terms

The Group leases certain official cars and other equipment - stackers with lease terms of 1 to 3 years. The Group does not have bargain purchase options to acquire the cars and stackers at the end of the lease terms.

The Group leases buildings for the use of offices with lease term of 3~5 years. The Group does not have bargain purchase options to acquire the buildings at the end of the lease term.

(IV) Other lease information

	2025	2024
Expenses relating to low-value asset leases	$ 601	$ 262
Total cash outflow for leases	($ 4,650)	($ 4,594)

The Group's leases of certain photocopiers qualify as low-value asset leases. The Group has elected to apply the recognition exemption and thus, did not recognize right-of-use assets and lease liabilities for these leases.

XVI. Intangible Assets

	Land	Buildings	Total
Cost
Balance on January 1, 2025	$ -	$ -	$ -
Reclassify(Note)	17,240	17,215	34,455
Balance on December 31,2025	$ 17,240	$ 17,215	$ 34,455
Accumulated Depreciation
Balance on January 1, 2025 and Balance on December 31,2025	$ -	$ 645	$ 645
Net Balance on December 31,2025,2025	$ 17,240	$ 16,570	$ 33,810

Note: The balance is a transfer from long-term advances, etc.

Investment property is provided for on a straight-line basis over the following useful lives:

Buildings

20 years

The fair value of investment properties is assessed by management based on market evidence of similar property transaction prices. The fair value is as follows:

	December 31, 2025	December 31, 2024
Fair Value	$ 36,627	$ -

XVII. Intangible Assets

	Computer software
Cost
Balance on January 1, 2025	$ 769
Additions	-
Balance on December 31,2025	$ 769
Accumulated amortization
Balance on January 1, 2025	$ 673
Amortization expense	69
Balance on December 31,2025	$ 742
Net balance on December 31,2025	$ 27
Cost
Balance on January 1, 2025	$ 705
Additions	64
Balance on December 31,2025	$ 769
Accumulated amortization
Balance on January 1, 2025	$ 596
Amortization expense	77
Balance on December 31,2025	$ 673
Net balance on December 31,2025	$ 96

Computer software is amortized on a straight-line basis on 1~3 years.

XVIII. Short-term Loans

	December 31, 2025	December 31, 2024
Unsecured Loan
Line of Credit Borrowing	$ 25,000	$ 30,000
Interest rate	2.431%	2.427%

XIX. Notes Payable and Accounts Payable

	December 31, 2025	December 31, 2024
Notes Payable
Notes Payable-From Business	$ 11,981	$ 15,120
Related Parties-From Business	$ -	$ 2,439
Accounts Payable
Notes Payable-From Business	$ 15,985	$ 19,288
Related Parties-From Business	$ -	$ 1,312

The average credit period for purchases was 90 days. The Group has established financial risk management policies to ensure that all payables are repaid within the pre-agreed credit periods.

XX. Other Payables

	December 31, 2025	December 31, 2024
Payables for salaries or bonuses	$ 41,798	$ 43,069
Payables for vacations	7,319	8,627
Utilities Payables	2,657	2,727
Payables for labor and health insurance	2,461	2,379
Payables for purchases of equipment (Note27)	2,577	666
Others	10,276	11,480
	$ 67,088	$ 68,948

XXI. Other Current Liabilities

	December 31, 2025	December 31, 2024
Receipts under custody	$ 585	$ 535
Refund Liabilities	334	391
	$ 919	$ 926

XXII. Post-retirement Benefits Plan

(I) Determine the allocation plan

The pension system of the "Labor Pensions Regulation" applied by the Group is a defined retirement scheme administered by the government, which transfers the pension to the individual account of the Labor Insurance Bureau according to 6% of the employee's monthly

salary.

(II) Determine the benefit plan

The pension system administered by the Group in accordance with the "Labor Standards Law" is a defined benefit retirement plan managed by the government. The payment of employee pension is based on the length of service and the average salary of 6 months prior to the approved retirement date. The Group shall allocate a pension of 2% of the employee's total monthly salary to the Labor Retirement Reserve Supervision Board to deposit in the special account of the Bank of Taiwan in the name of the committee. Before the end of the year, if the estimated balance of the special account is insufficient to pay the workers who are expected to meet the retirement conditions in the next year, the difference will be allocated once before the end of March of the next year. The special account is managed by the Labor Fund Operation Bureau of the Ministry of Labor, and the Group has no right to affect the investment management strategy.

The amount of defined benefit plans included in the individual balance sheet is listed as follows:

	December 31, 2025	December 31, 2024
Current Value of Determined benefit Obligations	$ 7,144	$ 6,901
Fair Value of Plan Assets	(11,982)	(10,791)
Net Determined benefit(Assets)
Liabilities	($ 4,838)	($ 3,890)

Changes in net defined benefit (assets) liabilities are as follows:

	Current Value of Determined benefit Obligations	Fair Value of Plan Assets	Net Determined benefit(Assets) Liabilities
Balance on January 1, 2024	$ 7,134	($ 10,502)	($ 3,368)
Interest Expense (Revenues)	89	(133)	(44)
Recognized in profits and losses	89	(133)	(44)
Number of Re-measurement

	Current Value of Determined benefit Obligations	Fair Value of Plan Assets	Net Determined benefit(Assets) Liabilities
Compensation for Planned Assets (except for the amount included in net interest)	-	( 947 )	( 947 )
Actuarial Losses- Changes in financial assumptions	( 127 )	-	( 127 )
Actuarial Benefit-Experience Adjustment	834	-	834
Recognized in other comprehensive profits and losses	707	( 947 )	( 240 )
Employees' Allocation	-	( 238 )	( 238 )
Benefits Payment	( 1,029 )	1,029	-
Balance on December 31, 2025	$ 6,901	($ 10,791 )	($ 3,890 )
Balance on January 1, 2024	$ 6,901	($ 10,791 )	($ 3,890 )
Interest Expense (Revenues)	104	( 165 )	( 61 )
Recognized in profits and losses	104	( 165 )	( 61 )
Number of Re-measurement Compensation for Planned Assets (except for the amount included in net interest)	-	( 772 )	( 772 )
Actuarial Losses- Changes in financial assumptions	58	-	58
Actuarial Benefit-Experience Adjustment	81	-	81
Recognized in other comprehensive profits and losses	139	( 772 )	( 633 )
Employees' Allocation	-	( 254 )	( 254 )
Benefits Payment	( )
Balance on December 31, 2024	$ 7,144	($ 11,982 )	($ 4,838 )

The Group exposed to the following risks due to the defined benefit plans under the "Labor Standards Law":

Investment risk: through self-use and entrusted operation, the Labor Fund Operation Bureau of the Ministry of Labor invests the labor pension fund in domestic (foreign) equity securities and debt securities and bank deposits respectively, however, the distribution amount of the Group's planned assets is calculated at a rate not lower than the 2-year time deposit interest rate of the local bank.
Interest rate risk: the decrease in the interest rate of government bonds/corporate bonds will increase the present value of defined benefit obligations, but the return on debt investment of planned assets will also increase, which will partially offset the impact of net defined benefit liabilities.
Salary risk: the calculation for determining the present value of benefit obligations is based on the future salary of the plan member. Therefore, the increase in the salary of plan members will increase the present value of determining benefit obligations.

The present value of the group's determined benefit obligations is carried out by a qualified actuary and the major assumptions for measuring the date are as follows:

	December 31, 2025	December 31, 2024
Discount Rate	1.375%	1.500%
Expected Rate of Increase in Salary	2.000%	2.000%

If there are reasonably possible changes in the material actuarial assumptions, all other assumptions remain the same, the amount of increase (decrease) in the present value of the determined benefit obligations is as follows:

	December 31, 2025	December 31, 2024
Discount Rate
Increased 0.25%	($ 114)	($ 123)
Decreased 0.25%	$ 118	$ 127
Expected Rate of Increase in Salary
Increased 0.25%	$ 115	$ 124
Decreased 0.25%	($ 112)	($ 121)

As actuarial assumptions may be related to each other, only a single assumption is unlikely to change, so the above sensitivity analysis may not reflect the actual changes in the present value of benefit obligations.

	December 31, 2025	December 31, 2024
Expected amount to be allocated within 1 year	$ 257	$ 238
Average expiration period of determined benefit obligations	6.5 years	7.2 years

XXIII. Equity

(I) Common stock

	December 31, 2025	December 31, 2024
Number of shares (thousands)	101,880	101,880
Rated share capital	$ 1,018,800	$ 1,018,800
Number of shares issued and fully funded (thousand shares)	85,767	85,767
Issued share capital	$ 857,670	$ 857,670

The issued common shares have a par value of NT$ 10 each and each share has the right to vote and receive dividends.

(II) Capital surplus

	December 31, 2025	December 31, 2024
May be used to offsetting a deficit, distributed as cash dividends, or transferred to
Stock issuance premium	$ 3,000	$ 3,000
Only used to make up for losses
Gain from disposal of assets	3,918	3,918
Benefits from exercise
Disgorgement	399	399
	$ 7,317	$ 7,317

The capital reserve can be used to make up for losses. The excess of shares issued in excess of par value may also be used to issue cash or allocate share capital when there is no loss in the group, subject to a certain percentage of paid-in share capital each year.

The capital reserve arising from the gains from the disposal of assets and benefits from exercise Disgorgement shall not be used for any purpose other than making up for losses.

(III) Retention of surplus and dividend policy

The Group’s Articles of Incorporation provide that, earnings distribution may be made on a quarterly basis after the close of each half year. Distribution of earnings by way of cash dividends should be approved by the Group’s Board of Directors and reported to the Group’s shareholders in its meeting.

According to the surplus distribution policy of the Group, The Group may distribute earnings or make up losses after the end of each semi-annual fiscal year. If the distribution of earnings is made in cash, it shall be resolved by the board of directors in accordance with Article 228-1 and Article 240 of the Group Act and reported to the shareholders’ meeting without being submitted to the shareholders’ meeting for ratification. If the distribution of earnings is made by issuing new shares, it shall be handled in accordance with Article 240 of the Group Act.

The Group’s dividend policy is based on the current and future investment environment, capital requirements, and capital budget, while considering the shareholders’ interest, dividend balance, and the Group’s long-term financial planning as the Group is in the business development stage. The Group shall distribute dividends and bonuses to shareholders not less than annual earnings after deducting income tax, making up for loss, setting aside legal reserve, but legal reserve has reached the amount of paid-in capital, it may no longer be set. The rest will be set or reversed 50% special reserve shall distribute dividends and bonuses according to the regulations. The annual dividends shall be paid in cash first, but stock dividends may also be distributed, of which no less than 10% of the total dividends shall be paid in cash.

The estimated basis and actual allotment of the remuneration of the employees and directors of the group can be found in Note 24 (9).

The statutory surplus reserve shall be set aside until its balance reaches the total paid-in share capital of the group. The statutory surplus reserve can be used to make up for losses. When there is no loss in the group, the part of the statutory surplus reserve exceeding 25% of the total paid-in share capital may be allocated in cash in addition to the allocated share capital.

When the group distributes its surplus, it must set aside the balance of equity deduction items (including unrealized losses on financial assets) as a special surplus reserve according to laws and regulations. If there is a subsequent reduction in the amount of equity deduction, the reduced amount can be transferred back to the undistributed surplus from the special surplus reserve.

The appropriations and cash dividends per share in 2024 and 2023 were as follows:

	2024	2023
Legal reserve provided	$ 9,609	$ 4,922
Reversr special reserve provided	($ 1,650)	($ 1,714)
Cash dividends to shareholders	$ 86,625	$ 49,745
Cash dividends per share (NT$)	$ 1.01	$ 0.58

The above-mentioned cash dividends were approved on March 12, 2025 and March 08, 2024 respectively. The remaining surplus distribution items for 2023 have been resolved at the general meeting of shareholders on June 25, 2024. The remaining surplus distribution items for 2024 have been resolved at the general meeting of shareholders on June 26, 2025.

On August 9, 2024, the group's board of directors resolved not to distribute the surplus in the first half of 2024.

On August 12, 2025, the group's board of directors resolved not to distribute the surplus in the first half of 2025.

The group's appropriation of earnings for 2025 second half that had been proposed by the Board of Directors on March 09, 2026 was as follows:

2025

Legal reserve provided
Reversr special reserve
provided
Cash dividends to shareholders
Cash dividends per share
(NT$)

2025
$ 6,777
($ 975)
$ 55,749
$ 0.65

The above-mentioned cash dividends have been distributed by the resolution of the board of directors, others will be resolved by the shareholders meeting to be held on June 23, 2026.

(IV) Other Equity

Unrealized gain on financial assets at FVTOCI

	2025	2024
Balance on January 1	$ 1,628	($ 1,650)
Recognized for the year
Unrealized gain
Equity instruments	( 2,603 )	1,870
Cumulative unrealized gain (loss) of equity instruments transferred to retained earnings due to disposal	-	1,408
Balance on December 31	($ 975)	$ 1,628

XXIV. Net Income

(I) Operating revenue

	2025	2024
Segmentation of Customer Contract Revenue
Sales Revenue
—Cloth trading	$ 661,266	$ 640,710
—Other	11,060	10,751
Service Revenue
—Dyeing & Finishing	131,384	136,578
	$ 803,710	$ 788,039

Contract balance

December 31, 2025	December 31, 2024	January 1, 2024

	December 31, 2025	December 31, 2024	January 1, 2024
Notes Payable And Account Payable(Note 10)	$ 70,723	$ 67,408	$ 54,429
Contract Assets
—Dyeing & Finishing	$ 1,096	$ -	$ -
Contract liabilities
Revenue of Commodity Sales	$ 6,935	$ 8,833	$ 8,497

The amount of performance obligations that have been met at the beginning of the year as income in the current period is as follows:

	2025	2024
Contract Liabilities from the Beginning of Year
Revenue of Commodity Sales	$ 2,527	$ 2,136

The consolidated group recognizes a provision for losses on contract assets based on expected credit losses during their lifetime. Contract assets are transferred to accounts receivable upon invoicing, and their credit risk characteristics are the same as those of accounts receivable arising from similar contracts. Therefore, the consolidated group believes that the expected credit loss rate for accounts receivable can also be applied to contract assets. As of December 31, 2025, the consolidated group assessed that no expected credit losses needed to be recognized for contract assets.

Changes in contract liabilities are primarily due to the difference between the point in time when performance obligations are satisfied and the point in time when customers make payments.

Breakdown of Customer Contract Revenue

For the breakdown of revenue, please refer to Note 36.

(II) Other operating income and expenses

Gain (loss) on disposal of property, plant and equipment
2025
$ 12
2024
$ 519

(III) Interest Income
2025
2024
Bank deposit
$ 4,719
$ 2,289
Financial financing measured at amortized cost Produce
6,609
$ 11,328
10,965
$ 13,254

(IV) Other Revenue
2025
2024
Dividend Revenue
2025
2024
Gain (loss) on financial instruments at FVTPL
$ 336
$ 394
Gain (loss) on investments in equity instruments measured at FVTOCI
2,469
1,095
Other gains
2,469
1,095
Government Subsidy
2,557
1,484
Others
302
309
$ 5,664
$ 3,282

(V) Other Revenues and Losses
2025
2024
Net loss on financial instruments at fair value through profit or loss mandatorily
$ 406
$ 331
Net gain (loss) on foreign currency exchange
( 17,394)
17,027
Lease modification benefit
-
3
Others
( 37)
(136)
($ 17,025)
$ 17,225

(VI) Financial Costs
2024
2023
Bank Loan Interest
$ 689
$ 765
Interest of Lease Liabilities
139
183
$ 828
$ 948

(VII) Depreciation and amortization expenses
2025
2024

Property, plant and equipment	$ 42,069	$ 46,272
Right-of-use assets	3,905	4,193
Investment property	645	-
Total	$ 46,619	$ 50,465
Intangible Assets	$ 69	$ 77
Depreciation expenses are summarized by function
Operating Costs	$ 43,051	$ 47,319
Operating Expenses	3,568	3,146
	$ 46,619	$ 50,465
Depreciation expenses are summarized by function
Operating Expenses	$ 69	$ 77
Management Expense	$ 43,051	$ 47,319
	3,568	3,146

(VIII) Employees' Benefit Expenses

	2025	2024
Retirement Benefits (Note 20)
Determined Allocation
Plan	$ 5,515	$ 5,324
Determined Benefit Plan	(61)	(44)
	5,454	5,280
Other Employee Benefits	$ 185,257	$ 187,246
Total Employees' Benefit Expense	$ 190,711	$ 192,526
Summary by Function
Operating Costs	$ 119,679	$ 119,900
Operating Expenses	71,032	72,626
	$ 190,711	$ 192,526

(IX) Employee Remuneration and Director Remuneration

The group company allocates employee remuneration and director remuneration at the pre-tax benefit of $3\%$ and not more than $3\%$ respectively before deducting the distribution of employee and director remuneration in the current year. In accordance with the August 2024 amendment to the Securities and Exchange Act, the Group amend its Articles of Association at it's 2025 General Meeting of Shareholders to stipulate that at least $60\%$ of employee compensation allocated from the current year's earnings must be distributed to front-line employees.

The estimated employee and director compensation for the periods July 1 to September 30, 2025 and 2024, and January 1 to September 30, 2025 and 2024, respectively, is as follows:

Estimation Ratio

	2025	2024
Employee remuneration	%	3%
Director Remuneration	%	3%

The amount

	2025	2024
	Cash	Cash
Employee remuneration	$ 2,607	$ 3,820
Director Remuneration	2,607	3,820

If there is any change in the amount after the release of the annual individual financial report, it shall be dealt with according to the change in accounting estimates and adjusted to be recorded in the following year.

There is no significant difference between the aforementioned approved amounts and the amounts charged against earnings of 2024 and 2023 respectively.

Information on the employees' compensation and remuneration of directors resolved by the Group's Board is available at the "Market Observation Post System" website of the Taiwan Stock Exchange.

(X) Net gain (loss) on foreign currency exchange

	2025	2024
Foreign currency exchange gains	$ 38,388	$ 22,124
Foreign currency exchange losses	( 55,782 )	( 5,097 )
Net gain (loss)	($ 17,394)	$ 17,027

XXV. Income Tax

(I) The main components of income tax expenses (benefits) recognized as profit and loss

2024 2023

	2024	2023
Current Income Tax
Arising in the Current Year	$ 19,351	$ 21,239
Additional tax on undistributed surplus	75	-
Unappropriated earnings levy	( 736 )	( 557 )
	18,690	20,682
Deferred Income Tax
Arising in the Current Year	( 3,294 )	2,709
Income Tax Expenses Recognized in the Profit or Loss	$ 15,396	$ 23,391

The adjustment of accounting revenues and income tax benefits in 2025 and 2024 is as follows:

	2025	2024
Income before Tax	$ 82,661	$ 120,700
Income Tax Benefits
Calculated at Statutory Tax Rate for Net Loss before Tax	$ 16,532	$ 24,140
Benefit that cannot be deducted in tax from the loss	167	760
Tax-exempt income	( 642 )	( 952 )
Additional tax on undistributed surplus	75	-
Income tax adjustments on prior year	( 736 )	( 557 )
Income tax expense recognized in profit or loss	$ 15,396	$ 23,391

(II) Income tax recognized in other comprehensive income

	2025	2024
Deferred Income Tax
Arising in the Current Year
—Number of Re-measurement of Determined Benefits	$ 127	$ 48
Income tax recognized in other comprehensive profit or loss	$ 127	$ 48

(III) Current Income Tax Assets and Liabilities

December 31, 2025 December 31, 2024

	December 31, 2025	December 31, 2024
Current Income Tax Liabilities
Income Tax Payable	$ 8,484	$ 16,946

(IV) Deferred Income Tax Assets and Liabilitie

Changes in deferred income tax assets and liabilities are as follows:

2025

	Balance at Beginning of Year	Recognizedi n the Profit and Loss	Recognized in Other Comperhens ive Profit and Loss	Balance at Ending of Year
Deferred Income Tax Assets
Temporary Differences Annual Leave Expense	$ 1,424	($ 261)	$ -	$ 1,163
Unrealized Exchange Loss	-	1,945	-	1,945
Refund liability	78	( 11)	-	67
Others	515	( 6)	-	509
	$ 2,017	$ 1,667	$ -	$ 3,684
Deferred Income Tax Liabilities
Temporary Differences Accelerated depreciation of real estate, plant and equipment	$ 3,554	$ 107	$ -	$ 3,661
Unrealized Exchange gain	1,796	( 1,796)	-	-
Actual amount of retirement pension	1,556	62	127	1,745
	$ 6,906	($ 1,627)	$ 127	$ 5,406

2024

	Balance at Beginning of Year	Recognizedi n the Profit and Loss	Recognized in Other Comperhens ive Profit and Loss	Balance at Ending of Year
Deferred Income Tax Assets
Temporary Differences

Annual Leave Expense	$ 1,281	$ 143	$ -	$ 1,424
Unrealized Exchange Loss	860	( 860)	-	-
Refund liability	46	32	-	78
Others	386	129	-	515
	$ 2,573	( $ 556)	$ -	$ 2,017
	Balance at Beginning of Year	Recognizedi n the Profit and Loss	Recognized in Other Comperhens ive Profit and Loss	Balance at Ending of Year
---	---	---	---	---
Deferred Income Tax Liabilities
Temporary Differences
Real estate, plant and accelerated depreciation of equipment	$ 3,254	$ 300	$ -	$ 3,554
Actual amount of retirement pension	1,451	57	48	1,556
Exchange Gain	-	1,796	-	1,796
	$ 4,705	$ 2,153	$ 48	$ 6,906

(V) Approval of Income Tax

The income tax declaration of the group's profit-oriented business shall be examined and approved by the taxing authorities before 2023.

XXVI. Earnings Per Share

Net profit and weighted average number of ordinary shares used to calculate earnings per share are as follows:

Net Income

	2025	2024
Basic/Diluted EPS Net income available to common shareholders	$ 67,265	$ 97,309

Unit: Thoosand shares

	2025	2024
The weighted average number of ordinary shares used in the calculation of basic earnings (net loss) per share	85,767	85,767
Impacts of potential ordinary shares with dilution effect: Employees' compensation	146	189
The weighted average number of ordinary shares used in the calculation of diluted earnings (net loss) per share	85,913	85,956

The Group may settle the compensation of employees in cash or shares; therefore, the Group assumes that the entire amount of the compensation will be settled in shares, and the resulting potential shares are included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.

XXVII. Cash Flow Information

(I) Non-cash transactions

For the years ended December 31, 2025 and 2024, the Group entered into the following non-cash investing and financing activities:

As of December 31, 2025 and 2024, the Group didn't paid acquisition of property, plant, equipment of NT$2,577 thousand and NT$666 thousand, list in payables to suppliers of machinery and equipment (please refer to note 18).

(II) Changes in liabilities arising from financing activities 2025

	Balance on January 1,2025	Cash Flows	Non-cash Changes			Amount of Interest Expenses	Others	Balance of December 31,2025
			New Leases	Lease modification	Amountization of Interest Expenses
Short Term Loan	$ 30,000	($ 5,000)	$ -	$ -	$ -	$ -	$ -	$ 25,000

2024

	Balance on January 1,2024	Cash Flows	Non-cash Changes			Amount of Interest Expenses	Others	Balance of December 31,2024
Short Term Loan Lease	$ 35,000	($ 5,000)	$ -	$ -	$ -	$ -	$ -	$ 30,000
Liabilitie	10,451	( 4,149)	696	( 253)	183	( 183)	6,745
	$ 45,451	($ 9,149)	$ 696	($ 253)	$ 183	($ 183)	$ 36,745

XXVIII. Capital Risk Management

The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximizing the return to shareholders through the optimization of the debt and equity balance. The overall strategy of the Group has not changed.

The Group has no other restrictions on external capital regulations.

XXIX. Financial Instruments

(I) Fair value of financial instruments that are not measured at fair value

Except as stated below, the Group's management believes that the carrying amount of financial instruments not measured at fair value approaches fair value.

December 31,2025

	Book Value	Fair Value
		Level 1	Level 2	Level 3	Total
Financial Assets
Financial Assets measured by amortized cost – U.S.
government debt	$ 13,509	$ -	$ 12,935	$ -	$ 12,935
-Corporate bonds	100,310	-	96,435	-	96,435
Total	$ 113,819	$ -	$ 109,370	$ -	$ 109,370

December 31,2024

	Book	Fair Value
		Level 1	Level 2	Level 3	Total

	Value
Financial Assets
Financial Assets measured by amortized cost – U.S.
government debt	$ 7,381	$ -	$ 6,658	$ -	$ 6,658
-Corporate bonds	103,159	-	97,785	-	97,785
Total	$110,540	$ -	$104,443	$ -	$104,443

The above-mentioned Level 2 fair value measurement is based on the quotation provided by the counterparty for evaluation.

(II) Fair value of financial instruments that are measured at fair value on a recurring basis

Fair value hierarchy

December 31,2025

	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Fund beneficiary certificates	$ 61,904	$ -	$ -	$ 61,904
Domestic listed stocks	11,171	-	-	11,171
	$ 73,075	$ -	$ -	$ 73,075
Financial assets at FVTOCI
Investments in equity instruments
– Domestic listed stocks	$ -	$ -	$ 2,172	$ 2,172

December 31,2024

	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Domestic listed stocks	$ 19,023	$ -	$ -	$ 19,023
Financial assets at FVTOCI
Investments in equity instruments
– Domestic listed stocks	$ -	$ -	$ 6,578	$ 6,578

There were no transfers between Levels 1 and 2 in 2025 and 2024.

Reconciliation of Level 3 fair value measurements of financial instruments

Year2025

Financial Assets	Financial Assets at FVTOCI
Balance at January 1	$ 6,578
Capital reduction and return of share certificates	( 1,803 )
Recognized in other comprehensive income (included in unrealized gain of financial assets at FVTOCI)	( 2,603 )
Balance at December 31	$ 2,172

Year2024

Financial Assets	Financial Assets at FVTOCI
Balance at January 1	$ 4,592
Recognized in other comprehensive income (included in unrealized gain of financial assets at FVTOCI)	1,986
Balance at December 31	$ 6,578

Valuation techniques and assumptions used in Level 3 fair value measurement.

The fair values of overseas unlisted corporate equity investments are estimated using the market approach with reference to the net value stated in the most recent financial statements of the investee company and based on the evaluation of similar companies and the operations of the investee company.

(III) Categories of financial instruments

	December 31, 2025	December 31, 2024
Financial assets
Mandatorily measured at FVTPL	$ 73,075	$ 19,023
Financial assets measured at amortized Cost (Note 1)	463,410	539,253
Financial assets at FVTOCI Equity instruments	2,172	6,578
Financial Liabilities
Financial liabilities measured by amortized cost (Note 2)	40,887	50,568

Note1: The balance includes financial assets measured at amortized cost, such as Cash and Cash Equivalents, Financial Assets

Measured at Amortized Cost, Notes Receivable and Accounts Receivable, Other Receivables and Refundable Deposits.

Note2: The balance includes financial liabilities measured at amortized cost such as, notes payable (Include Related Party), accounts payable (Include Related Party), other payables and other financial Liabilities - restricted (recognized as other current and non-current Liabilities).

(IV) Financial risk management objectives and policies

The Group’s major financial instruments include financial assets at FVTPL, financial assets measured at FVTOCI, accounts receivable, accounts payable, and lease liabilities etc. The Group’s corporate treasury function coordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the Group which analyze exposures by degree and magnitude of risks. These risks include market risk (including currency risk and interest rate risk and other price rate), credit risk and liquidity risk.

1. Market risk

The Group’s activities exposed it primarily to the financial risks of changes in foreign currency exchange rates, interest rates and other price changed risk. There had been no change to the Group’s exposure to market risks or the manner in which these risks were managed and measured.

(1) Foreign currency risk

For the carrying amounts of monetary assets and monetary liabilities denominated in the non-functional currency at the balance sheet date, refer to Note 32.

Sensitivity analysis

The Group is mainly influenced by the USD, EUR and JPY exchange rate fluctuation.

The following table details the Group’s sensitivity to a 10% increase and decrease in the New Taiwan dollar (the

functional currency) against the relevant foreign currency (U.S. dollar). 10% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management's assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis included foreign cash, foreign currency deposit in bank, and receivable and payable in foreign currencies. The positive numbers in the following table represent the amount of increase in net profit before tax when functional currency depreciates 10% relative to the relevant currencies; when functional currency appreciates 10% relative to the relevant currencies, its impact on the net profit before tax will be the same negative number of the amount.

	Influence of USD		Influence of JPY		Influence of EUR
	Nine Months Ended December 31		Nine Months Ended December 31		Nine Months Ended December 31
	2025	2024	2025	2024	2025	2024
Profit or loss	$25,125	$30,809	$1,135	$ -	$ 19	$ 491

The sensitivity of the group to the USD decreased during the current period, mainly due to the decrease in net assets denominated in USD during the current period.

The sensitivity of the Group to the JPY increased during the current period, mainly due to the increase in deposit in Euros during the current period.

The sensitivity of the Group to the EUR decreased during the current period, mainly due to the decrease in deposit in Euros during the current period.

(2) Interest rate risk

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

December 31, 2025

December 31, 2024

	December 31, 2025	December 31, 2024
Fair value interest rate risk
—Financial Assets	$ 250,600	$ 357,851
—Financial Liabilities	5,054	6,745
Cash flow interest rate risk
—Financial Assets	117,514	115,185
—Financial Liabilities	25,000	30,000

Sensitivity analysis

The sensitivity analysis below was determined based on the group's exposure to interest rates for non-derivative instruments at the end of the reporting period. A 50 basis point increase or decrease was used when reporting interest rate risk internally to key management personnel and represents management's assessment of the reasonably possible change in interest rates.

If the interest rate increases/decreases by 50 basis points and all other variables remain unchanged, the group's net income before tax in 2025 and 2024 will increase/decrease by NT$463 thousand and NT$426 thousand, mainly due to the group's exposure to demand deposit interest rate and short-term loan interest rate risk.

The group's interest rate sensitivity increased during the period, which was mainly due to an increase in bank deposits with variable interest rates.

(3) Other Price Risk

The Group's equity price exposure is caused by the investment of equity securities. The management of the group manages risks by holding different risk portfolios. The equity investment is strategical, not held for trading. Additionally, the group supervises periodical and evaluates price risk

Sensitivity analysis

The following sensitivity analysis is based on equity price exposure on the balance sheet date.

If equity prices rise/fall 10%, pre-tax profit or loss in 2025 and 2024 will increase/decrease by NT$ 7,308 thousand and NT$ 1,902 thousand due to the rise/fall in the fair value of financial assets measured by fair value through profit or loss. Other comprehensive profit and loss before tax in 2025 and 2024 will increase/decrease by NT$ 217 thousand and NT$ 658 thousand due to the increase/decrease in the fair value of financial assets measured at fair value through other comprehensive income or loss.

The sensitivity of the group to the Financial assets at FVTPL increased during the current period, mainly due to the increase investment of equity securities during the current period.

The Group's sensitivity to price risk of financial assets measured at fair value through other comprehensive income decreased during the year, mainly due to a decrease in equity securities investments in financial assets measured at fair value through other comprehensive income during the year.

Credit Risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Group. As of the end of the reporting period, the Group's maximum exposure to credit risk, which will cause a financial loss to the Group due to the failure of the counterparty to discharge its obligation, is primarily equal to the carrying amount of the respective recognized financial assets as stated in the balance sheets

The Group uses publicly available financial information and its own trading records to rate its major customers. The Group's

exposure and the credit ratings of its counterparties are continually monitored.

The Group’s concentration of credit risk of 74% and 72% in total trade receivables as of December 31, 2025 and 2024, respectively, was related to customers who exceed 5% of the total receivables.

2. Liquidity risk

The group maintains sufficient bank deposit and financing amount supervises expected and actual cash flow continuously. The maturities of financial assets and liabilities are matched to achieve the purpose of managing liquidity risk.

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

The remaining contract maturity analysis of non-derivative financial liabilities is based on the earliest possible repayment date of the Group and is compiled based on the undiscounted cash flows of financial liabilities.

December 31,2025

	On Demand or Less than 1 Month	1 Month - 3 Months	Over 3 Months to 1 Year	Over 1 Year to 5 Years
Non-derivative financial liabilities
Non-interest bearing liabilities	$ 10,344	$ 30,543	$ 68	$ -
Short-term liabilities	25,000	-	-	-
Lease liabilities	338	675	1,939	2,222
	$ 10,682	$ 31,218	$ 1,939	$ 2,222

December 31,2024

	On Demand or Less than 1 Month	1 Month - 3 Months	Over 3 Months to 1 Year	Over 1 Year to 5 Years
Non-derivative financial liabilities
Non-interest bearing liabilities	$ 11,743	$ 38,855	$ 95	$ -
Short-term liabilities	30,000	-	-	-
Lease liabilities	338	634	2,601	3,348

On Demand or Less than 1 Month	1 Month - 3 Months	Over 3 Months to 1 Year	Over 1 Year to 5 Years
$ 42,081	$ 39,489	$ 2,696	$ 3,348

(2) Financing facilities

	December 31, 2025	December 31, 2024
Unsecured bank overdraft facilities
— Amount used	$ 25,000	$ 30,000
— Amount unused	120,000	115,000
	$ 145,000	$ 145,000

XXX. Related Party Transaction

Other than as disclosed in the notes, the significant transactions between the merged group and related parties are as follows:

(I) The Group’s related partie

Name of Related Party	Relationship with the merged company
Tung Fa Liu Neng Co., Ltd.	Subsidiary
Lan Fa Textile Co., Ltd.	Other related parties
Da Tung Dying Co., Ltd.	The chairman of the company is the chairman of the company.
Anthony Poliang Yeh	Major Management
	Other related parties
(and the chairman of the company are two Relatives within the same degree of kinship)
Chih-Ming Yeh

(II) Purchases

Related Party	2024	2023
Lan Fa Textile Co., Ltd.	$ 12,307	$ 6,056

The trading conditions for the group to purchase goods from related parties are equivalent to those of general manufacturers.

(III) Lease Agreement

Account Item	Related Party Name/Categories	December 31, 2025	December 31, 2024
Lease Labilities	Anthony Poliang Yeh/ Chih-Ming Yeh	$ 1,570	$ 2,027
Related Party Name/Categories		2025	2024

Interest Expense
Anthony Poliang Yeh/
Chih-Ming Yeh
$ 38
$ 48

The rental expenses of the group are leased offices from major management, the terms of the transaction are negotiated by both parties, rent is paid monthly.

(IV) Related Party Payable

Account Item	Related Party Name/Categories	December 31, 2025	December 31, 2024
Note Payable	Lan Fa Textile Co., Ltd.	$ -	$ 2,439
Account Payable	Lan Fa Textile Co., Ltd.	$ -	$ 1,312

The balance of the outstanding accounts payable to related parties is not guaranteed.

(V) Acquired property, plant and equipment

Related Party Name/Categories	Received price
	2025	2024
The chairman of the company is the chairman of the company.
Da Tung Dying Co., Ltd.	$ 792	$ -

(VI) Remuneration of key management personnel

	2025	2024
Short-term employee benefits	$ 18,402	$ 19,481
Post-employment benefits	559	550
	$ 18,961	$ 20,031

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

XXXI. Mortgaged Assets

In addition to those stated in other notes, the group has the following significant commitments at the balance sheet date:

Land	December 31, 2024	December 31, 2023
	$ 17,700	$ 17,700

	December 31, 2024	December 31, 2023
Buildings	307	481
	$ 18,007	$ 18,181
Restricted assets	$ 500	$ 500

XXXII. Significant or Indebted and Unrecognized Contractual commitments

In addition to those stated in other notes, the group has the following significant commitments at the balance sheet date:

	December 31, 2024	December 31, 2023
Commitments for equipment purchasing and project contracts	$ 6,880	$ 8,831

XXXIII. Material Subsequent Events : None.

XXXIV. Assets and Liabilities Denominated in Foreign Currencies

The following information is presented in aggregate foreign currencies other than the functional currencies of the individual entities of the merged group. The exchange rates disclosed refer to the exchange rates of these foreign currencies converted to the functional currencies. The group's assets and liabilities denominated in foreign currencies were as follows:

December 31, 2025

	Foreign Currency (Thousand)	Exchange Rate	Carrying Amount
Foreign Currency assets
Monetary items
USD	$ 8,002	31.43 (USD : TWD)	$ 251,352
JPY	56,530	0.2008 (EUR : TWD)	11,351
EUR	5	36.9 (JPY : TWD)	194
Non-monetary items
USD	69	31.43 (USD : TWD)	2,172

	Foreign Currency (Thousand)	Exchange Rate	Carrying Amount
JPY	306,793	0.2008 (USD : TWD)	61,904
Foreign Currency liabilities
Monetary items
USD	3	31.43 (USD : TWD)	101

December 31, 2024

	Foreign Currency (Thousand)	Exchange Rate	Carrying Amount
Financial assets
Monetary items
USD	$ 9,405	32.785 (USD : NTD)	$ 308,320
EUR	144	34.14 (EUR : NTD)	4,911
Non-monetary items
USD	201	32.785 (USD : NTD)	6,578
Financial liabilities
Monetary items
USD	7	32.785 (USD : NTD)	229

The significant unrealized foreign exchange gains were as follows:

	2025		2024
Foreign Currency	Exchange Rate	Foreign Exchange Loss	Exchange Rate	Foreign Exchange Loss
USD	31.18 (USD : TWD)	($ 3,756)	32.11 (USD : TWD)	$ 8,865
EUR	35.18 (EUR : TWD)	$ 21	34.74 (EUR : TWD)	$ 115
JPY	0.209 (JPY : TWD)	($ 6,170)	0.212 (JPY : TWD)	$ -

XXXV. Separately Disclosed Items

(I) Information about significant transactions

Financing provided to others: None.
Endorsements/guarantees provided: Table 1.
Marketable securities held (excluding investments in subsidiaries): Table 2.
Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital: None.

Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: None.
Others: Business relationships and significant transactions between the parent group and its subsidiaries, as well as among the subsidiaries themselves, and their amounts. (None)

(II) Information on reinvestment business: Table 3

(III) Information on investments in China

The name, main business items, paid-in capital, investment method, capital remittance, shareholding ratio, investment profit and loss, investment book value and remitted investment profit and loss of the invested group in China: None.
The following major transactions with China invested companies directly or indirectly through the third area, as well as their prices, terms of payment, unrealized profits and losses: None.

(1) Balance and percentage at the end of the period of purchase amount and percentage and related payables: None.

(2) Balance and percentage at the end of the period of sale amount and percentage and related payables: None.

(3) The amount of property transactions and the amount of profit and loss generated: None.

(4) Balance and purpose at the end of the period of note endorsement that guarantees or provides collateral: None.

(5) Maximum balance, balance at the end of the period, interest rate range and total interest of the current period of financing: None.

(6) Other transactions that have a significant impact on the current profit or loss or financial situation, such as the provision or receipt of labor services, etc: None.

(IV) Disclosure of information related to affiliated companies:

Consolidated financial statements of affiliated enterprises overall affiliated enterprises should disclose:

NO.	Items	Illustrate
1	The name of the subordinate company, the relationship between it and the controlling company, the nature of the business, and the proportion of shares or capital contributions held by the controlling company.	Note 13, Table 4
2	Changes in the increase and decrease of subsidiaries included in the consolidated financial statements of affiliated companies for the current period.	Note 13
3	Names of affiliated companies not included in the consolidated financial statements of affiliated companies in the current period, the proportion of shares held or capital contribution, and the reasons for non-consolidation.	None
4	When the fiscal year start and end date of the subordinate company is different from that of the controlling company, the adjustment and treatment method.	None
5	The accounting policy of the subsidiary company is different from that of the controlling company; if it does not conform to the generally accepted accounting principles of the country, the adjustment method and content.	None
6	Special risks related to the operation of foreign subsidiaries, such as exchange rate changes, etc.	None
7	Circumstances where the profit distribution of affiliated enterprises is restricted by laws or contracts.	Note 23
8	Method and period of amortization of consolidated debit (credit) items.	None
9	Other important matters or explanatory matters that contribute to the fair expression of the consolidated financial statements of related enterprises.	None

Note. If there is a surplus in the annual final accounts of the subsidiary, after paying taxes and making up for the accumulated losses according to law, $10\%$ will be raised as the statutory surplus reserve; If there is a balance remained, add the accumulated undistributed surplus. The board of directors will draft a surplus distribution proposal and submit it to the shareholders meeting for approval.

Matters to be disclosed by individual affiliated companies

NO.	Items	Illustrate
1	Eliminated transactions between the controlling company and subordinate companies and between subordinate	Table 3
	and the other companies.
2	Proportion of shares held by the controlling company.	Note 13
3	Proportion of shares held by the controlling company in the current period.	Note 13
4	Proportion of shares held by the controlling company in the past 12 months.	Note 13
5	Proportion of shares held by the controlling company in the past 30 years.	Note 13

	companies and subordinate companies.
2	Engaging in financing, endorsement and guarantee related information.	Table 1
3	Information about engaging in derivatives transactions.	None
4	Major contingencies.	None
5	Significant Subsequent Events.	None
6	The name, quantity, cost, market price (if there is no market price, disclose the net value), shareholding or capital contribution ratio, pledge status, and the highest mid-term shareholding or capital contribution status of the securities and marketable securities held.	Table 2 and 4
7	Other important matters or explanatory matters that contribute to the fair expression of the consolidated financial statements of related enterprises.	None

XXXVI. Information of Departments

Information reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance focuses on the type of products delivered or services provided. The reportable segments of the Group are dyeing and finishing division, trading sales division and others.

The chief operating decision maker regards the departmental units in each region as individual operating departments, but when preparing the consolidated financial report, the combined company considers the following factors and regards these operating departments as a single operating department.

Similar in nature
The product is delivered to the customer in the same way

(I) Segment revenue and results

The income and operating results of the continuing business unit of the merged group are analyzed according to the reporting department as follows:

Item	2025
	Dyeing and finishing division	Trading sales division	Others	Eliminations	Total
Revenue from external customers	$ 131,384	$ 661,266	$ 11,060	$	$ 803,710
Intersegment revenue	147,253	7,973	-	( 155,226)	-
Total sales	$ 278,637	$ 669,239	$ 11,060	($ 155,226)	$ 803,710
Segment income	($ 101,428)	$ 179,362	$ 4,727	$ -	$ 82,661

Item	2024
	Dyeing and finishing division	Trading sales division	Others	Eliminations	Total
Revenue from external customers	$ 136,578	$ 640,710	$ 10,751	$ -	$ 788,039
Intersegment revenue	150,722	7,405	-	( 158,127)	-
Total sales	$ 287,300	$ 648,115	$ 10,751	($ 158,127)	$ 788,039
Segment income	($ 95,737)	$ 211,378	$ 5,059	$ -	$ 120,700

This measure is provided to the chief operating decision maker to allocate resources to departments and measure their performance.

(II) Segment assets and liability

Measures of consolidated company assets not provided for operational decisions.

(III) Geographical information

The main place of operation of the merged company is Taiwan.

The Group's revenue from external customers by location of operations is detailed below:

	2024	2023
Taiwan	$ 280,318	$ 272,859
Vietnam	228,231	209,183
Bengal	145,607	117,942
China	57,690	78,742
Sri Lanka	25,331	27,689
Cambodia	21,520	36,129
Indonesia	17,584	15,341
Others	27,429	30,154
	$ 803,710	$ 788,039

(IV) Information about major customers

Customers that individually accounted for at least 10% of the Group's revenue and their respective sales revenues were as follows:

	2024		2023
Name of customer	Amount	% of net revenue	Amount	% of net revenue
Customer A	$ 105,824	13%	$ 127,402	16%
Customer B	101,619	13%	91,611	12%
Customer C	83,446	10%	69,783	9%

Evertex Fabrinology Limited and Subsidiaries
Provision of endorsements and guarantees to others
January 1 to December 31, 2025

Table 1
Unit: NTD thousand

NO.	Guarantor	Guaranteed		Limit on guarantees provided for a single party (Note 2)	Maximum amount guarantee during the period (Note 4)	Outstanding guarantee at the end of the period (Note 4)	Actual amount drawn down	Amount of guarantees secured with collateral	Ratio of accumulated guarantee amount to net asset value of the guarantor company (Note 3)	Ceiling on total amount of guarantees provided (Note 2)	Provision of guarantees by parent company to subsidiary (Note 5)	Provision of guarantees by subsidiary to parent company (Note 5)	Provision of guarantees to the party in Mainland China (Note 5)	Remarks
		Name	Relationship
0	The Company	Tung Fa Liu Neng Co., Ltd.	Note1	$	$	$	$	$ -	%	$	Y	-	-

Note1: Associates in which the Company holds 50% of ordinary shares directly.
Note2: As for the amount of the Company's endorsement/guarantee provided to a single enterprise due to business dealings, the upper limit of the endorsement/guarantee provided shall not exceed one-half of the company's paid-in capital.
Note3: It is calculated according to the financial data of the company providing the endorsements/guarantees.
Note4: The maximum balance of endorsements/guarantees for the current period and the balance of endorsement/guarantee, end of period, are the amounts approved by the board of directors.
Note5: “Y” shall be entered only in the cases of endorsement/guarantee by the publicly listed parent to subsidiary; endorsement/guarantee by subsidiary to the publicly listed parent; endorsement/guarantee to entity in mainland china.

Evertex Fabrinology Limited and Subsidiaries
Markedable Securities Held (Do not include investment in subsidiaries)
December 31, 2025

Table 2
Unit: NTD thousand, thousands of shares

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account	End of term				Remarks (Note5)
				Number of Shares	Carrying Amount	Percentage of Ownership (%)	Fair Value
The Company	Stocks
	Prince Housing & Development Corp	None	Financial Assets Measured at Fair Value through Profit or Loss-current	900	$ 7,371	0.06	$ 7,371	Note1
	China Steel Corporation	〃	〃	200	3800	-	3,800	Note1
	China Rebar Co., Ltd	〃	Financial Assets Measured at Fair Value through Profit or Loss- noncurrent	54	-	-	-	Note2
	Bright Wisdom Holdings Limited	〃	Financial assets at fair value through other comprehensive income (FVTOCI) - noncurrent	92	2,172	1.15	2,172	Note3
	Bonds
	Macquarie Bank Limited USD Corporate Bonds	None	Financial assets measured at amortized cost - current		3,147	4.95	3,156	Note5
	Oracle Corporation USD Corporate Bon	None	Financial assets measured at amortized cost - noncurrent		7,184	5.22-5.58	6,458	Note5
	GOTLI Group USD Corporate Bonds	〃	〃		4,663	5.31-6.02	4,760	Note5
	United States Steel Corporation USD Bonds	〃	〃		5,394	6.26-6.94	5,343	Note5
	Qualcomm Incorporated USD Corporate Bond	〃	〃		6,332	4.21-5.32	6,304	Note5
	AT&T American Telephone & Telegraph U.S. Dollar Corporate Bonds	〃	〃		2,932	5.26-5.33	2,732	Note5
	Verizon Communications Inc. USD Corporate Bonds	〃	〃		2,912	5.00-5.14	2,626	Note5
	Apple USD Corporate Bonds	〃	〃		6,520	4.37	5,774	Note5
	Berkshire Hathaway Financial Corporation USD Corporate Bonds	〃	〃		6,590	4.41-5.65	6,074	Note5
	ORIX Corporation USD Corporate Bonds	〃	〃		4,893	4.55	4,867	Note5
	3.25% U.S. Treasury Dollar Bond	〃	〃		7,107	3.89-4.29	6,562	Note5
	The Estée Lauder Companies USD Corporate Bond	〃	〃		1,491	5.50	1,580	Note5
	Boeing Co. USD Corporate Bonds	〃	〃		4,695	4.92-5.94	4,847	Note5
	UnitedHealth Group Inc. USD Corporate Bonds	〃	〃		6,093	4.94-5.05	5,642	Note5
	Eli Lilly and Company USD Corporate Bonds	〃	〃		6,371	4.39-4.56	6,417	Note5
	Pfizer Pharmaceutical Co., Ltd. USD Corporate Bonds	〃	〃		2,964	4.87	2,791	Note5
	Nomura International Capital Pte Ltd USD Corporate Bonds	〃	〃		6,330	4.91-5.12	6,214	Note5
	Starbucks Corporation USD Corporate Bonds	〃	〃		4,143	5.36	3,895	Note5
	Meta Platform Company USD Corporate Bonds	〃	〃		5,065	5.08-5.13	4,533	Note5
	Goldman Sachs Financial Services International Ltd. Stepped Rate USD Corporate Bonds	〃	〃		3,108	4.95	3,115	Note5
	NVIDIA Corporation USD Corporate Bonds	〃	〃		2,240	4.54	2,127	Note5
	Dell Corporation USD Corporate Bonds	〃	〃		1,039	5.37	1,011	Note5
	Deutsche Bank bonds	〃	〃		3,147	5.04	3,145	Note5

Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account	End of term				Remarks (Note5)
			Number of Shares	Carrying Amount	Percentage of Ownership (%)	Fair Value
Saudi Arabia International Bond	o	o		6,402	4.73	6,373	Note5
Societe Generale bonds	o	o		3,057	4.76	3,024	Note5
Funds	o	o					Note4
Nomura Japan Strategy Value Yen Fund	None	Financial assets measured at fair value through profit or loss – Current	2	9,122	NA	9,122	Note4
Templeton Japan Yen Accumulation Fund	o		20	8,972	NA	8,972	Note4
Nomura Japan Strategy Value Yen - Later Recovery	o		2	6,260	NA	6,260	Note4
Templeton Japan Yen Accumulated Fund - Later Harvest	o		21	6,340	NA	6,340	Note4
Hanyia Japan Power Stock Yen Fund	o		20	12,913	NA	12,913	Note4
Federal Reserve Japan Income Growth Daily Distribution	o		9,000	18,297	NA	18,297	Note4

Note 1: The fair value of listed (OTC) company stock refers to the closing price on December 31, 2025.
Note 2: Since China Liba Corporation applied for reorganization at the end of 1995 and was delisted on April 11, 1996, its value had been reduced after assessment. Therefore, its book value was fully recognized as a financial asset valuation loss in 1995.
Note 3.: The fair value of unlisted (over-the-counter) stocks overseas is estimated by referring to the net value of the investee company's recent financial statements and taking into account liquidity reduction. The determination is based on the operating conditions of the investee company.
Note 4: The fair value of the fund is calculated based on the market net asset value as of December 31, 2015.
Note 5: The fair value of the bonds is calculated based on the counterparty's quote as of December 31, 2015.
Note6: None of the securities held at the end of the period were pledged.

Evertex Fabrinology Limited and Subsidiaries
Markedable Securities Held (Do not include investment in subsidiaries)
January 1 to December 31, 2025

Table 3
Unit: Unless otherwise noted, it is NT$ thousand

NO. (Note1)	Company name	Counterparty	Relationship(Note2)	Transaction Details
				Financial Statement Account	Amount	Payment Terms	% of Total Sales or Assets (Note 3)
0	The Company	Tung Fa Liu Neng Co., Ltd.	Parent company to subsidiary	Guarantees	$ 50,000	—	4.31%
1	Subsidiary	Evertex Fabrinology Limited	Subsidiary to parent company	Cash dividends	3,643	—	0.31%

Note1: The business information between the parent company and the subsidiaries shall be indicated in the serial number column respectively, and the numbering method is as follows:
(1) Fill in 0 for the parent company.
(2) The subsidiaries shall be numbered sequentially starting with the Arabic numeral 1 according to the company.

Note2: There are three kinds of relationship with the trader, which can be marked: (if it is the same transaction between parent and subsidiaries or subsidiaries to subsidiaries, there is no need to repeat disclosure. For example: parent company to subsidiary transaction, if the parent company has been disclosed, the subsidiary part does not need to be repeatedly disclosed; for the transactions of a subsidiary to a subsidiary, if one of the subsidiaries has been disclosed, the other subsidiary need not be repeatedly disclosed):
(1) Parent company to subsidiary.
(2) Subsidiary to parent company.
(3) Subsidiary to subsidiary.

Note3: Calculation of the ratio of transaction amount to total consolidated income or total assets, in the case of asset-liability items, it shall be calculated according to the balance at the end of the period to the total consolidated assets; in the case of profit and loss items, it shall be calculated according to the accumulated amount in the period to the total consolidated income.

Note4: The important transactions in this table can be determined by the company based on the principle of material.

Note5: At the time of the preparation of the consolidated financial statements, it has been consolidated and written off.

Evertex Fabrinology Limited and Subsidiaries

Name, Locations, And Other Informations of Investees On Which the Group Exercises Significant Influence

January 1, 2024 to December 31, 2025

Table 4
Unit: Unless otherwise noted, it is NT$ thousand

Investor Company	Investee Company	Location	Main Business and Products	Investment Amount		Held at the end of the period			Net Income (Loss) of the Investee (Note 1 and 2)	Share of Profit (Note1 and 2)	Remarks
				December 31, 2024	December 31, 2023	Number of Shares	%	Carrying Amount (Note1 and 2)
The Company	Tung Fa Liu Neng Co., Ltd.	Taoyuan City	Self-usage power generation equipment utilizing renewable energy industry	$ 46,000	$ 46,000	4,600,000	100	$ 52,850	$ 3,765	$ 3,765	Subsidiaries

Note1: The investment gains and losses of the subsidiaries accounted are calculated based on the financial statements that have been audited.
Note2: Eliminated from the consolidated financial statements.
Note3: None of the marketable securities held at the end of the period listed in the table above were pledged as collateral.

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EVERTEX — Audit Report / Information 2025

51827_rns_2026-05-13_e03ac264-029c-4e93-a95b-89a54d112ae3.pdf

§TABLE OF CONTENTS§

Declaration of Consolidated Financial Statements of Affiliates

INDEPENDENT AUDITORS' REPORT

Opinion

Basis of Audit Opinion

Key Audit Matters

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

IV · Summary Statement of Major Accounting Policies

(I) Compliance Statement

(II) Basis of Preparation

(III) Standards for distinguishing between current and non-current assets and liabilities

(IV) Basis of consolidation

(V) Foreign Currency

(2) Impairment of Financial Assets

XV. Lease Arrangement

(I) Right-of-use Assets

(II) Lease liabilities

XIX. Notes Payable and Accounts Payable

XX. Other Payables

XXI. Other Current Liabilities

XXII. Post-retirement Benefits Plan

(I) Determine the allocation plan

(II) Determine the benefit plan

XXIII. Equity

(I) Common stock

(II) Capital surplus

(III) Retention of surplus and dividend policy

(IV) Other Equity

XXIV. Net Income

(I) Operating revenue

Contract balance

(VIII) Employees' Benefit Expenses

(IX) Employee Remuneration and Director Remuneration

(IV) Deferred Income Tax Assets and Liabilitie

(V) Approval of Income Tax

XXVI. Earnings Per Share

XXVII. Cash Flow Information

(I) Non-cash transactions

(II) Changes in liabilities arising from financing activities 2025

XXVIII. Capital Risk Management

XXIX. Financial Instruments

(IV) Financial risk management objectives and policies

1. Market risk

(1) Foreign currency risk

(2) Interest rate risk

Sensitivity analysis

(3) Other Price Risk

2. Liquidity risk

(2) Financing facilities

XXX. Related Party Transaction

(I) The Group’s related partie

(II) Purchases

(III) Lease Agreement

(IV) Related Party Payable

(V) Acquired property, plant and equipment

(VI) Remuneration of key management personnel

XXXI. Mortgaged Assets

XXXVI. Information of Departments

(I) Segment revenue and results

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EVERTEX Audit Report / Information 2025