Stock Code: 1470

Evertex Fabrinology Limited

Parent Company Only Financial Statements
For the Years Ended December 31, 2025 and 2024
And Independent Auditors’ 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	3~8	-
IV.	Balance Sheet	9	-
V.	Statements of Comprehensive Income	10~11	-
VI.	Statements of Changes in Equity	12	-
VII.	Statements of Cash Flows	13~15	-
VIII.	Notes to Financial Statements
	(I) General	16	I
	(II) Date and Procedure for the Approval of Financial Reports	16	II
	(III) Application of Newly Issued and Revised Standards and Interpretations	16~18	III
	(IV) Summary Statement of Major Accounting Policies	19~32	IV
	(V) Main Sources of Uncertainty about Major Accounting Judgements, Estimates and Assumptions	32~33	V
	(VI) Major Accounting Item Descriptions	33~68	VI~XXVIII
	(VII) Related Party Transaction	68~70	XXIX
	(VIII) Mortgaged Assets	70	XXX
	(IX) Significant Contingent Liabilities and Unrecognized Commitments	70~71	XXXI
	(X) Assets and Liabilities Denominated in Foreign Currencies	71~72	XXXII
	(XI) Major Events After Reporting Period	-	-
	(XII) Others	72~73	XXXII
	(XIII) Other Disclosure
	1. Related information on major transactions	72、74~76	XXXIII
	2. Related information on reinvestment	72、76	XXXIII
	3. Related information on investments in China	72	XXXIII
IX. Statement of Major Accounting Items		78~95	-

INDEPENDENT AUDITORS' REPORT

Evertex Fabrinology Limited:

Opinion

The entity's balance sheets of Evertex Fabrinology Limited of December 31, 2024 and 2023, and the entity consolidated income statement, statement of changes in entity equity, statement of entity cash flows and notes to entity's financial statements (including the summary of major accounting policies) from January 1 to December 31, 2025 and 2024, have been checked by the accountant.

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

The key audit items mean the most important items for the inspection of the entity's financial statements of Evertex Fabrinology Limited in 2025 according to the professional judgment of the accountant. These items have been responded to in the process of examining the entity's financial statements as a whole and forming audit opinions, and the accountant does not comment on these items separately.

The key audit matter for checking the entity's financial statements of Evertex Fabrinology Limited in 2025 are described as follows:

Authenticity of customers' sales income under specific credit conditions

As EVERTEX FABRINOLOGY LTD. is a 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. 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.

Responsibilities of Management and Governance Unit to entity's Financial Statements

The responsibility of management is to prepare properly expressed entity's financial statements in accordance with the financial reporting standards of securities issuers, and to maintain the necessary internal controls relating to the preparation of the entity's financial statements to ensure that the entity's financial statements do not contain material misrepresentations caused by fraud or errors.

In preparing the entity's financial statements, the responsibility of management also includes the assessment of the ability of Evertex Fabrinology Limited to continue to operate, the disclosure of related items, and the adoption of the accounting basis for continued operation, unless the management intends to liquidate the Evertex Fabrinology Limited or cease business, or there is no practical alternative other than liquidation or closure.

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

Responsibility of Accountant to Check Entity's Financial Statements

The purpose of the accountant to check the entity's financial statements is to obtain reasonable assurance as to whether there are material misrepresentations caused by fraud or error in the entity's financial statements as a whole, and to issue an audit report. Reasonable certainty is a high degree of certainty, but audits carried out in accordance with audit standards do not guarantee that material misrepresentations in the entity's financial statements will be identified. False expression may be caused by fraud or error. It is considered significant if the individual amounts or remittances misrepresented can be reasonably expected to affect the economic decisions made by the users of the entity's 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.
Based on the audit evidence obtained, draw a conclusion as to whether there is significant uncertainty about the appropriateness of the management's adoption of the accounting basis of continuing operations and whether there is significant uncertainty about the events or circumstances that may give rise to significant doubts about the ability of the Evertex Fabrinology Limited to continue to operate. If the accountant considers that there is material uncertainty in such events or circumstances, the accountant shall, in the audit report, remind users of the entity's financial statements to pay attention to the relevant disclosures of the entity's financial statements, or amend the audit

opinion if such disclosures are inappropriate. The accountant's conclusion is based on the audit evidence obtained as of the date of the inspection report. However, future events or circumstances may cause the Evertex Fabrinology Limited have no ability to continue to operate.

Assess the overall expression, structure and content of the entity's financial statements (including related notes), and whether there are related transactions and events expressed in the entity's financial statements.

Obtain sufficient and appropriate audit evidence for the financial information of the constituent individuals within the Evertex Fabrinology Limited to express the opinion on entity's financial statements. The accountant is responsible for the guidance, supervision and implementation of group audit cases, and is responsible for forming audit opinions of Evertex Fabrinology Limited.

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 items of communication with the governance unit, the accountant decides on the key items for checking the consolidated financial statements of Evertex Fabrinology Limited in 2025. The accountant describes these items in the audit report, unless the law does not allow public disclosure of specific items, or in rare cases, the accountant decides not to communicate specific items in the audit report, because it can be reasonably expected that the negative impact of this communication is greater than the promotion of the public interest.

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

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

Evertex Fabrinology Limited
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)	$ 229,365	20	$ 287,648	24
1110	Current financial assets at fair value through profit or loss (Note 4 and 7)	73,075	7	19,023	2
1136	Current financial assets at amortization (Note 4 + 9 + 29)	48,617	4	69,500	6
1140	Contract assets	1,096	-	-	-
1150	Notes receivable (Note 4, 10 and 22)	3,423	-	2,476	-
1170	Accounts receivable (Note 4, 10 and 22)	66,732	6	64,434	6
1200	Other receivables (Note 4 and 10)	1,938	-	1,993	-
130X	Current inventories (Note 4 and 11)	134,880	12	162,748	14
1479	Other current assets (Note 12 and 28)	28,084	3	23,463	2
11XX	Total current assets	587,210	52	631,285	54
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
1550	Investments accounted for using equity method (Note 4 and 13)	52,850	5	52,728	5
1600	Property, plant and equipment (Note 4 + 14 and 29)	298,565	26	323,509	27
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	543,460	48	546,663	46
1XXX	Total assets	$ 1,130,670	100	$ 1,177,948	100
Code	Liabilities and Equity
Current Liabilities
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)	66,598	6	68,427	6
2230	Income tax payable (Note 4 and 23)	7,976	1	16,572	2
2280	Current lease liabilities (Note 4 + 15 and 28)	2,874	-	3,463	-
2399	Other current liabilities (Note 4 and 19)	907	-	914	-
21XX	Total current liabilities	113,256	10	136,368	12
Non-current Liabilities
2570	Deferred tax liabilities (Note 4 and 23)	1,745	-	3,352	-
2580	Non-current lease liabilities (Note 4 + 15 and 28)	2,180	-	3,282	-
25XX	Total Non-current Liabilities	3,925	-	6,634	-
2XXX	Total Liabilities	117,181	10	143,002	12
Equity (Note 21)
3110	Capital stock	857,670	76	857,670	73
3200	Capital surplus	7,317	1	7,317	1
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	90	1,034,946	88
	Total Liabilities and equity	$ 1,130,670	100	$ 1,177,948	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
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	%
	Operating Revenue (Note 4 and 22)
4100	Sales Revenue	$ 661,266	83	$ 640,710	82
4600	Service Revenue	131,384	17	136,578	18
4000	Total Operating Revenue	792,650	100	777,288	100
	Operating Cost (Note 11、22 and 28)
5110	Cost of sales	393,746	50	377,197	48
5600	Cost of services	210,857	26	206,848	27
5000	Total Operating Cost	604,603	76	584,045	75
5900	Gross profit from perations	188,047	24	193,243	25
	Operating Expenses (Note 10 and 22)
6100	Selling Expenses	79,159	10	79,472	10
6200	Administrative expenses	30,224	4	31,376	4
6450	Expected Credit Gain	135	-	421	-
6000	Total Operating Expenses	109,518	14	111,269	14
6500	Gain on disposal of property, plan and equipment (Note22)	12	-	519	-
6900	Operating income	78,541	10	82,493	11
	Non-operating income and expenses(Note 4、22 and 28)
7100	Interest income	10,892	1	12,824	2
7190	Other income	5,664	1	3,282	-
7020	Other gains and losses	(17,025)	(2)	17,225	2
7070	Share of Profit and Loss of Subsidiaries
	Using Equity Method	3,765	-	4,048	1
7050	Finance cost	(139)	-	(183)	-

(Continued on next page)

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Code		2024		2023
		Amount	%	Amount	%
7000	Non-operating income and expenses	3,157	-	37,196	5
7900	Profit from continuing operations before tax Income before tax	81,698	10	119,689	16
7950	Tax expense (Note 4 and 23)	(14,433)	(2)	(22,380)	(3)
8200	Profit from continuing operations	67,265	8	97,309	13
	Other comprehensive income
Components of other comprehensive income that will not be reclassified to profit or loss
8311	Losses on remeasurements of defined benefit plans (Note 20)	633	-	240	-
8316	Unrealized Gains from investments in equity instruments measured at fair value through other comprehensive income(Note 21)	(2,603)	-	1,870	-
8349	Income tax related to components of other comprehensive income that will not be reclassified to profit or loss(Note 23)	(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
	Basic earnings per share(Note 24)
9710	Basic earnings per share	$0.78		$1.13
9810	Diluted earnings per share	$0.78		$1.13

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
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
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	Profit before Tax	$ 81,698	$ 119,689
A20010	Income Expense Item
A20100	Depreciation Expense	41,821	46,236
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	139	183
A21200	Interest income	( 10,892)	( 12,824)
A21300	Dividend income	( 2,805)	( 1,489)
A22400	Share of (profit) and loss of subsidiary
accounted for under the equity method	( 3,765)	( 4,048)
A22500	Loss (gain) on disposal of property, plan and
equipment	( 12)	( 519)
A23800	Loss (gain) on Impairment loss 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	( 1,096)	-
A31125	Increase (decrease) in contract assets	-	( -)
A31130	Decrease (increase) in note receivable	( 947)	( 127)
A31150	Decrease (increase) in accounts receivable	( 2,246)	( 13,062)
A31180	Decrease (increase) in other receivable	8	( 5)
A31200	Decrease (increase) in inventories	27,992	( 22,781)
A31240	Decrease (increase) in other current assets	4,679	( 9,977)
A31250	Decrease (increase) in net defined benefit
assets	( 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	( 3,740)	( 11,880)
A32230	Increase (decrease) in other current
liabilities	( 7)	137
A33000	Cash inflow (outflow) generated from operations	118,642	113,797
A33100	Interest received	887	734
A33300	Interest paid	( 139)	( 183)
A33500	Income taxes refund (paid)	( 26,430)	( 10,964)

AAAA	Net cash flows from (used in) operating activities	92,960	103,384
	Cash flows from (used in) investing activities
B00020	Disposal of financial assets measured at fair value through other comprehensive profit or loss	-	10,170
B00030	Cash receipts from capital reduction of financial assets measured at fair value through other comprehensive income	1,803	-
B00040	Refund of capital reduction of financial assets at fair value through other comprehensive income	(79,116)	(60,365)
B00050	Disposal of capital reduction of financial assets at fair value through other comprehensive income	94,585	80,528
B00100	Acquisition of financial assets at fair value through profit or loss	(63,256)	-
B00200	Disposal of financial assets at fair value through profit or loss	4,586	38,473
B02700	Acquisition of property, plant and equipment	(10,416)	(24,202)
B02800	Disposal of property, plant and equipment	12	519
B03700	Increase in refundable deposits	-	(1)
B04500	Acquisition of intangible assets	-	(64)
B06700	Increase in Other non-current Assets	-	(22,406)
B07100	Increase in prepayments for business facilities	(25,620)	(2,125)
B07500	Interest received	10,190	11,244
B07600	Dividends received	2,805	1,489
B07600	Dividends received from subsidiary company	3,643	3,801
BBBB	Net cash flows from (used in) investing activities	(60,784)	37,061
	Cash flows from (used in) financing activities
C04020	Repayment of the principal portion of lease liabilities	(3,910)	(4,149)
C04500	Cash dividends paid	(86,625)	(49,745)
CCCC	Net cash flows from (used in) financing activities	(90,535)	(53,894)
DDDD	Effect of exchange rate changes on cash and cash equivalents	76	3,120
EEEE	Net increase (decrease) in cash and cash equivalents	(58,283)	89,671
E00100	Cash and cash equivalents at beginning of period	287,648	197,977
E00200	Cash and cash equivalents at end of period	$ 229,365	$ 287,648

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
Notes to Individual 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 Company") 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 Company is engaged in the business of dyeing and finishing all kinds of textile products. In April 1996, the Company 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 Company's shares have been listed and traded on the Taiwan Stock Exchange since May 21, 1999.

This individual financial report is expressed in the Company's functional currency, New Taiwan Dollar.

II、Date and Procedure for the Approval of Financial Reports

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

III、Application of Newly Issued and Revised Standards and Interpretation

(I) International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), International Financial Reporting Interpretations Committee (IFRIC) and Standing Interpretation Committee (SIC) (hereinafter referred to as "IFRS"), which were approved and issued by the Financial Supervisory Commission (hereinafter referred to as FSC), have been applied for the first time, the application of the revised IFRSs approved and issued by the FSC will not result in the material change in the company's accounting policy.

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

New/Revised/Amended Standards and Interpretations	Effective Date Announced by IASB
Annual Improvements to IFRS Accounting Standards - Volume 11	January 1, 2026
Amendments to IFRS 9 and IFRS 7 "Amendments to the Classification and Measurement of Financial Instruments"	January 1, 2026
Amendments to IFRS 10 and IAS 28, “Sales or Contributions of Assets between an Investor and its Associates or Joint Ventures”	January 1, 2026
IFRS 17 Insurance Contracts	January 1, 2023

Note: Unless otherwise stated, the above newly issued/amended/revised standards or interpretations are effective for annual reporting periods beginning after such dates.

(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 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.

When preparing the individual financial report, the company adopts the equity method to deal with the investment subsidiary. In order to make the current year's profit and loss, other consolidated profit and loss and equity in the individual financial report the same as those vested in the owner of the Company in the consolidated financial statements of the Company. Some differences in accounting treatment on an individual basis and on a consolidated basis are adjustments to "investment using equity method", "profit and loss share of subsidiaries using equity method", "other comprehensive profit and loss share of subsidiaries using equity method" and related equity items.

(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) Foreign Currency

In preparing the financial statements, transactions in currencies other than the entity's functional currency (foreign currencies) is recognized at the rates of exchange prevailing at the dates of the transactions.

Foreign currency monetary items are converted at the closing exchange rate on each balance sheet date. Monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date, such exchange differences 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 in terms of historical cost in foreign currencies use exchange rates prevailing on trading day, not retranslated.

(V) 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.

(VI) Invest the subsidiary

The company adopts the equity method to deal with the investment in subsidiaries.

Subsidiary refers to the entity under the control of the company.

Under the equity method, the investment is originally recognized at cost, and the future book amount increases or decreases with the subsidiary profit and loss and other comprehensive profit and loss shares and profit distribution enjoyed by the company. In addition, changes in the company's other rights and interests of subsidiaries are recognized according to the proportion of shareholdings.

When the Company's share of losses in a subsidiary equals or exceeds its equity in the subsidiary (including the book value of the subsidiary under the equity method and other long term equity that is essentially part of the Company's net investment in the subsidiary), it is continued to recognize losses based on shareholding ratio.

When assessing the impairment, the company considers the cash-generating unit as a whole in the financial report and compares its recoverable amount with the carrying amount. Subsequently, if the recoverable amount of the asset increases, the reversal of the

impairment loss shall be recognized as an advantage, provided that the carrying amount of the asset after the reversal of the impairment loss shall not exceed the carrying amount of the asset after amortization if the impairment loss is not recognized.

(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 (Note 4 and 16)

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 asset

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, intangible assets

At the end of each reporting period, the Company reviews the carrying amounts of its property, plant and equipment, right-of-use asset, 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 to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit (CGU) to which the asset belongs. Corporate assets are allocated to the individual CGUs on a reasonable and consistent basis of allocation.

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 CGU is estimated to be less than its carrying amount, the carrying amount of the asset or CGU is reduced to its recoverable amount, with the resulting impairment loss recognized in profit or loss.

When an impairment subsequently loss is reversed, the carrying amount of the asset or CGU 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 for the asset or CGU 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 company 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.

1. 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) Measure category

The types of financial assets held by the Company are financial assets measured at fair value through profit or loss, financial assets measured at amortized cost, investments in debt instruments at fair value through other consolidated income and equity instruments at fair value through other consolidated profit or loss.

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 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. Please refer to Note 27 for the method of determining fair value.

B. Financial Assets Measured at Amortized Cost

If the company's investment financial assets meet the following two conditions at the same time, it will be classified as Financial Assets Measured at Amortized Cost:

a. Held under a business model for the purpose of holding financial assets to collect contractual cash flows; and
b. The terms of the contract generate cash flows on a specific date, which are solely interest on the payment of principal and the amount of principal outstanding.

Financial Assets Measured at Amortized Cost (Including cash and approximately equivalent cash, financial assets measured at amortized cost, financial assets measured at amortized accounts receivable and guarantee deposits paid) 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.

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.

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

At the time of the original recognition, the company 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.

Equity instrument investments measured at fair value through other comprehensive profit and loss are measured at fair value, and subsequent fair value changes are reported in other comprehensive profit or loss and accumulated in other equity. At the time of investment disposition, the accumulated profit and loss is transferred directly to the retained surplus and is not reclassified as profit or loss.

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 company 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 company assesses the impairment 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 Company determines that the following situations indicate that a financial asset is in default without taking into account any collateral held by the Company:

A. Internal or external information show that the debtor is unlikely to pay its creditors.

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

(3) Exclusion of Financial Assets

The company excludes financial assets only when contractual rights from the cash flow of financial assets expire, or when financial assets have been transferred and almost all risks and rewards of ownership of such assets have been transferred to other enterprises.

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.

Equity instruments

The equity instruments issued by the Company are classified as financial liabilities or equity in accordance with the substance of the contractual agreement and the definitions of financial liabilities and equity instruments.

The equity instruments issued by the Company are recognized at the amount of the proceeds received less direct issuance costs.

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 the 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 company apportion the transaction price among the performance obligations and recognize the income when the performance obligations are met.

Revenue from Commodity Sales

Revenue from sales of goods is mainly derived from the sale of fabric. The Company 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 Company 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.

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.

(XIII) Lease

The company 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 Company 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 company 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 company is the lessee

Except for lease payments for low-value target asset leases and short-term leases with applicable exemptions, which are recognized as expenses during the lease term on a straight-line basis, other leases are recognized as right-to-use assets and lease liabilities at the lease commencement date.

The right-to-use asset is originally measured at cost (including the original measurement amount of the lease liability), followed by the cost less accumulated depreciation and accumulated impairment losses, and adjusts the re-measurement of the lease liability. The right-to-use assets are separately expressed in the individual balance sheet.

Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms.

The lease liability is originally measured by the present value of the lease payment (including 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, the lease liability is measured at amortized cost basis using the effective interest method, and the interest expense is apportioned over the lease period. If a change in the lease period results in a change in the future leases payment, the company measures the lease liability and adjusts the use right asset relatively, but if the carrying amount of the use right asset has been reduced to zero, the remaining re-measure amount is recognized in profit or loss. Lease liabilities are expressed separately in the individual balance sheet.

(XIV) Government Subsidy

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

Government subsidy related to revenue is recognized as reducing of cost on a systematic basis during the period in which the related costs are recognized as expenses by the 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 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 Benefit

Short-term Employee Benefit

Liabilities related to short-term employee benefits are measured by the non-discounted amount expected to be paid in exchange for employee services.

Post-retirement Benefit

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

To determine the defined benefit cost of a benefit retirement plan (including service cost, net interest and r re-measure) is an actuary based on the projected unit benefit method. Service costs (including current service costs and net interest on net defined benefit liabilities are recognized as employee benefit expenses when incurred. Re-measures (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.

Net defined benefit liabilities (assets) represent the actual deficit (surplus) in the Company's defined benefit plans. 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) Income Tax

Income tax expense is the sum of current income tax and deferred income tax.

Current Income Tax

According to the Income Tax Law in the Taiwan, an additional tax on unappropriated earnings is provided for in the year the shareholders approve to retain earnings.

Adjustments of prior years' tax liabilities are added to or deducted from the current year's tax provision.

2. 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 Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

3. 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.

When developing significant accounting estimates, the company will take into account the possible impact of the economic environment on cash flow estimates, growth rates, discount rates, profitability and other relevant major accounting estimates. The management will continue to review estimates and Basic assumptions.

The accounting policies, estimates and basic assumptions adopted by the Company have been evaluated by the Company's management and there are no significant uncertainties in accounting judgments, estimates and assumptions.

VI. Cash and Cash Equivalents

	December 31, 2025	December 31, 2024
Cash	$ 261	$ 213
Bank Check and Current Deposit	161,793	136,624
Cash Equivalents
Bank fixed deposit with original maturity date within 3 months	67,311	150,811
	$ 229,365	$ 287,648

The market interest rates for bank demand deposit and bank fixed deposit with original maturity date within 3 month 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

Financial Assets-Current
Compulsory measurement at fair value through profit or loss

December 31, 2025

December 31, 2024

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, 2025	December 31, 2024
Current
Domestic Investment
Listed Stocks	$	$ -
Non-Current
Foreign Investment
Bright Wisdom Holdings
Limited	$ 2,172	$ 6,578

The company 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	$ 44,970	$ 69,000
Restricted assets	500	500
Foreign investment
U.S. government debt	-	-
Corporate bonds	-	-
	$ 45,470	$ 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, 2025	December 31, 2024
Bank time deposits with original maturity date of more than 3 months	1.195%~1.70%	1.70%
Restricted assets	1.650%	1.525%

Restricted assets are time deposits that purchase in as security from firm. Please refer to Note 29.

(II) The company 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 Company received a disposal proceeds of NT$4,585,000 due to the maturity of foreign corporate bonds.

(IV) For information related to the Company'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 company 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 company 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 company 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 Company 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 company 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	$ 67,538	$ 65,105
Minus: Allowance for Loss	( 806 )	( 671 )
	$ 66,732	$ 64,434
Other Receivable
Interest Receivable	$ 1,938	$ 1,985
Others	-	8
	$ 1,938	$ 1,993

(I) Note Receivable and Account Receivable

Before accepting a new customer, the Company 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 Company 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 Company'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 Company 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 Company. For example, the debtor is in liquidation. The Company continues to engage in enforcement activity, and the recovered amounts are recognized as profit or loss.

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

| | December 31, 2025
Within 120 days of
account opening | December 31, 2024
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 Company's provision matrix:

December 31, 2025

	Within 30			91 to 120	121 to 150	151 to 180	181 to 210
	days	31 to 60 days	61 to 90 days	days	days	days	days	Total
Expected credit loss rate	0.17%	0.75%	8.12%	70.33%	80.80%	74.38%	100%
Total Book Value	$ 53,571	$ 11,411	$ 2,021	$ 25	$ 260	$ 51	$ 199	$ 67,538
Loss allowance (Lifetime)
D/Ls)	( 92)	( 85)	( 164)	( 18)	( 210)	( 38)	( 199)	( 806)
Amortized cost	$ 53,479	$ 11,326	$ 1,857	$ 7	$ 50	$ 13	$ -	$ 66,732
	Within 30			91 to 120	121 to 150	151 to 180	181 to 210	211 to 240
---	---	---	---	---	---	---	---	---
	days	31 to 60 days	61 to 90 days	days	days	days	days	days
Expected credit loss rate	0.06%	0.12%	2.90%	22.20%	39.06%	69.63%	100%	100%
Total Book Value	$ 35,442	$ 13,877	$ 2,159	$ -	$ 219	$ 94	$ -	$ -
Loss allowance (Lifetime)
D/Ls)	( 23)	( 16)	( 63)	-	( 85)	( 65)	-	-
Amortized cost	$ 35,419	$ 13,861	$ 2,096	$ -	$ 134	$ 29	$ -	$ -

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	-	-

	2025	2024
Less: Net remeasurement of loss allowance	-	( 2 )
Ending balance	$ 806	$ 671

Refer to Note 27. disclosure for details of the Company's concentration of credit risk of accounts receivable as of December 31, 2025 and 2024.

(II)Other receivables

Other receivables are mainly subsidies and interest receivables, the Company's policy is to trade solely by reputable company. The Company 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 Company 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	9,332	4,786
Tax credit	1,833	3,181
Provisional payment	776	2,048
	$ 28,084	$ 23,463
Non-current
Long-term Prepayments	$ -	$ 32,631

XIII. Investment Using Equity Method

Investment in Subsidiaries

Name of Subsidiary	Ownership Interest and Percentage of Voting Rights
	December 31, 2025	December 31, 2024
Tung Fa Liu Neng Co., Ltd.	100%	100%

Dividends distributed by subsidiaries using the equity method in fiscal years 2025 and 2024 were NT$3,643,000 and NT$3,801,000 respectively.

The share of profits and losses and other consolidated profits and losses of subsidiaries using the equity method in 2025 and 2024 are recognized on the basis of the financial statements audited by accountants of each subsidiary in the same period.

	Self-owned Land	Buildings	Machinery Equipment	Transportation equipment	Other Equipment	Total
Cost
Balance on January 1, 2025	$ 174,044	$ 343,326	$ 439,285	$ 5,327	$ 232,979	$ 1,194,961
Additions	-	-	9,931	598	1,798	12,327
Disposals	-	-	(20,633)	(333)	(11,061)	(32,027)
Balance on December 31,2025	$ 174,044	$ 343,326	$ 428,583	$ 5,592	$ 223,716	$ 1,175,261
Accumulated depreciation
Balance on January 1, 2025	$ -	$ 310,688	$ 373,018	$ 5,148	$ 182,598	$ 871,452
Depreciation expense	-	4,805	22,270	210	9,986	37,271
Disposals	-	-	(20,633)	(333)	(11,061)	(32,027)
Balance on December 31,2054	$ -	$ 315,493	$ 374,655	$ 5,025	$ 181,523	$ 876,696
Net balance on December 31,2025	$ 174,044	$ 27,833	$ 53,928	$ 567	$ 42,193	$ 298,565

Cost	Self-owned Land	Buildings	Machinery Equipment	Transportation equipment	Other Equipment	Total
Balance on January 1, 2024	$ 174,044	$ 342,470	$ 426,350	$ 6,574	$ 230,922	$ 1,180,360
Additions	-	856	15,332	-	2,157	18,345
Disposals	-	-	( 3,848 )	( 1,247 )	( 100 )	( 5,195 )
Reclassificatio (Note)	-	-	1,451	-	-	1,451
Balance on December 31,2024	$ 174,044	$ 343,326	$ 439,285	$ 5,327	$ 232,979	$ 1,194,961
Accumulated depreciation
Balance on January 1, 2024	$ -	$ 305,609	$ 350,951	$ 6,039	$ 172,005	$ 834,604
Depreciation expense	-	5,079	25,915	356	10,693	42,043
Disposals	-	-	( 3,848 )	( 1,247 )	( 100 )	( 5,195 )
Balance on December 31,2024	$ -	$ 310,688	$ 373,018	$ 5,148	$ 182,598	$ 871,452
Net balance on December 31,2024	$ 174,044	$ 32,638	$ 66,267	$ 179	$ 50,381	$ 323,509

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

The company 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 company 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	3~13 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

The amount of property, plant and equipment that the Company sets pledge as loan guarantee, please refer to Note 30.

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	December 31, 2025	December 31, 2024
	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 Company leases certain official cars and other equipment - stackers with lease terms of 1 to 3 years. The Company does not have bargain purchase options to acquire the cars and stackers at the end of the lease terms.

The Company leases buildings for the use of offices with lease term of 3~5 years. The Company 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 Company's leases of certain photocopiers qualify as low-value asset leases. The Company 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

	Computer software
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.

XVII. 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 Company has established financial risk management policies to ensure that all payables are repaid within the pre-agreed credit periods.

XIX. Other Payables

	December 31, 2025	December 31, 2024
Payables for salaries or bonuses	$ 41,510	$ 42,761
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 (Note25)	2,577	666
Others	10,074	11,267

December 31, 2025
$ 66,598
December 31, 2024
$ 68,427

XX. Other Current Liabilities

	December 31, 2025	December 31, 2024
Receipts under custody	$ 573	$ 523
Refund Liabilities	334	391
	$ 907	$ 914

XX. Post-retirement Benefits Plan

(I) Determine the allocation plan

The pension system of the “Labor Pensions Regulation” applied by the company 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 company 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 company 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 company 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 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)

	Current Value of Determined benefit Obligations	Fair Value of Plan Assets	Net Determined benefit(Assets) Liabilities
Benefits Payment	(__)
Balance on December 31, 2024	$ 7,144	($ 11,982)	($ 4,838)

The Company is 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 company'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 company'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

XXII. 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 company, 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 Company’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 Company’s Board of Directors and reported to the Company’s shareholders in its meeting.

According to the surplus distribution policy of the Company, The Company 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 Company 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 Company Act.

The Company'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 Company's long-term financial planning as the Company is in the business development stage. The Company 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 company can be found in Note 23 (9).

The statutory surplus reserve shall be set aside until its balance reaches the total paid-in share capital of the company. The statutory surplus reserve can be used to make up for losses. When there is no loss in the company, 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 company 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 company's board of directors resolved not to distribute the surplus in the first half of 2024.

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

The company'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	$ 6,777
Reversr special reserve provided	($ 975)
Cash dividends to shareholders	$ 55,749
Cash dividends per share (NT$)	$ 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

	2025	2024
Balance on December 31	($ 975)	$ 1,628

XXIII. Net Income

(I) Operating revenue

	2025	2024
Segmentation of Customer Segmentation of Customer Contract Revenue
Sales Revenue	$ 661,266	$ 640,710
Service Revenue
—Dyeing & Finishing	131,384	136,578
	$ 792,650	$ 777,288

Contract balance

	December 31, 2025	December 31, 2024	January 1, 2024
Notes Payable And Account Payable(Note 10)	$	$ 66,910	$ 53,888
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	$ 8,497

The Company recognizes a provision for losses on contract assets based on expected credit losses during their term. 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 Company believes that the expected credit loss rate for accounts receivable can also be applied to contract assets. As of December 31, 2015, the Company assessed that no expected credit losses need 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.

(II) Other operating income and expenses

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

(III) Interest Income

	2025	2024
Bank deposit	$ 4,697	$ 2,255
Financial financing measured at amortized cost Produce	6,195	10,569
	$ 10,892	$ 12,824

(IV) Other Revenue

	2025	2024
Dividend Revenue
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
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

	2025	2024
Lease modification benefit	-	3
Others	( 37 )	( 136 )
	($ 17,025)	$ 17,225
(VI) Financial Costs
	2025	2024
Interest of Lease Liabilities	$ 139	$ 183
(VII) Depreciation and amortization expenses
	2025	2024
Property, plant and equipment	$ 37,271	$ 42,043
Right-of-use assets	3,905	4,193
Investment property	645	-
Total	$ 41,821	$ 46,236
Intangible Assets	$ 69	$ 77
Depreciation expenses are summarized by function
Operating Costs	$ 38,253	$ 43,090
Operating Expenses	3,568	3,146
	$ 41,821	$ 46,236
Depreciation expenses are summarized by function
Operating Expenses	$ -	$ -
Management Expense	69	77
	$ 69	$ 77
(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	184,895	186,863
Total Employees’ Benefit
Expense	$ 190,349	$ 192,143
Summary by Function
Operating Costs	$ 119,679	$ 119,900
Operating Expenses	70,670	72,243
	$ 190,349	$ 192,143

(IX) Employee Remuneration and Director Remuneration

The 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 Company 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 Company'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

XXIV. Income Tax

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

	2025	2024
Current Income Tax
Arising in the Current Year	$	$ 20,528
Additional tax on undistributed surplus	75	-
Unappropriated earnings levy	( 732 )	( 557 )
	17,834	19,971
Deferred Income Tax
Arising in the Current Year	( 3,401 )	2,409
Income Tax Expenses
Recognized in the Profit or Loss	$ 14,433	$ 22,380

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

	2025	2024
Income before Tax	$ 81,698	$ 119,689
Income Tax Benefits
Calculated at Statutory Tax Rate for Net Loss before Tax	$ 16,340	$ 23,938
Benefit that cannot be deducted in tax from the loss	145	760
Tax-exempt income	( 1,395 )	( 1,761 )
Income tax adjustments on prior year	75	( 557 )
Income tax expense recognized in profit or loss	( 732 )	$ 22,380

(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
Current Income Tax Liabilities
Income Tax Payable	$ 7,976	$ 16,572

(IV) Deferred Income Tax Assets and Liabilities

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 Unrealized Exchange gain	$ 1,796	($ 1,796)	$ -	$ -
Actual amount of retirement pension	1,556	62	127	1,745
	$ 3,352	($ 1,734)	$ 127	$ 1,745

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
Deferred Income Tax Liabilities
Temporary Differences Unrealized Exchange gain	$ -	$ 1,796	$ -	$ 1,796
Actual amount of retirement pension	1,451	57	48	1,556
	$ 1,451	$ 1,853	$ 48	$ 3,352

(V) Approval of Income Tax

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

XXV. 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

Shares
Unit : Thousand Stocks

	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 Company may settle the compensation of employees in cash or shares; therefore, the Company 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.

XXVI. Cash Flow Information

(I) Non-cash transactions

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

As of December 31, 2025 and 2024, the Company 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			Others	Balance of December 31,2025
			New Leases	Lease modification	Amortization of Interest Expenses
Lease Liabilities	$ 6,745	($ 3,910)	$ 2,219	($ )	$ 139	($ 139)	$ 5,054

2024

	Balance on January 1,2024	Cash Flows	Non-cash Changes			Others	Balance of December 31,2024
			New Leases	Lease modification	Amortization of Interest Expenses
Lease Liabilities	$10,451	($ 4,149)	$ 696	($ 253)	$ 183	($ 183)	$ 6,745

XXVII. Capital Risk Management

The Company manages its capital to ensure that entities in the Company 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 Company has not changed.

The Company has no other restrictions on external capital regulations.

XXVIII. Financial Instruments

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

Except as stated below, the Company'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 Value	Fair Value
		Level 1	Level 2	Level 3	Total
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

2025

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

2024

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 Company's major financial instruments include financial assets at FVTPL, financial assets measured at FVTOCI, accounts receivable, accounts payable, and lease liabilities etc. The Company's corporate treasury function coordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the Company 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.

Market risk

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

The following table details the Company’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 Company 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 Company 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 Company 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 Company’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
Fair value interest rate risk
– Financial Assets	$ 226,600	$ 330,851
– Financial Liabilities	5,054	6,745
Cash flow interest rate risk
– Financial Assets	114,232	111,686

Sensitivity analysis

The sensitivity analysis below was determined based on the company’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 company's net income before tax in 2025 and 2024 will increase/decrease by NT$571 thousand and NT$558 thousand, mainly due to the company's exposure to demand deposit interest rate and short-term loan interest rate risk.

The company’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 company's equity price exposure is caused by the investment of equity securities. The management of the company manages risks by holding different risk portfolios. The equity investment is strategical, not held for trading. Additionally, the company 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 company 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 Company'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.

2. Credit Risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Company. As of the end of the reporting period, the Company's maximum exposure to credit risk, which will cause a financial loss to the Company 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 Company uses publicly available financial information and its own trading records to rate its major customers. The Company's exposure and the credit ratings of its counterparties are continually monitored.

The Company'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.

3. Liquidity risk

The company 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 Company 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	$ -	$ -
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	$ 38,825	$ -	$ -
Lease liabilities	338	634	2,601	3,348
	$ 12,081	$ 39,459	$ 2,601	$ 3,348

(2) Financing facilities

	December 31, 2025	December 31, 2024
Unsecured bank overdraft facilities
—Amount used	$ 30,000	$ 30,000
—Amount unused	115,000	110,000
	$ 145,000	$ 140,000

The company's financing line is used jointly with its subsidiary, and the used amount is the borrowings of the subsidiary.

XXIX. Related Party Transaction

The Company transactions with Related Parties are us follows :

(I) The Company'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 Name/Categories	2025	2024
Lan Fa Textile Co., Ltd.	$ 2,523	$ 12,307

The trading conditions for the company 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	$ 2,072
Related Party Name/Categories		2025	2024
Interest Expense
Anthony Poliang Yeh/ Chih-Ming Yeh		$ 38	$ 48

The rental expenses of the company 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

	Received price
Related Party Name/Categories	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

Provision of endorsements and guarantees to others

Related Party Name/Categories	December 31, 2025	December 31, 2024
Tung Fa Liu Neng Co., Ltd.
Guarantee amount	$ 50,000	$ 50,000
Actual amount drawn down	25,000	30,000

(VI) Remuneration of key management personnel

	2025	2024
Short-term employee benefits	$ 18,191	$ 19,260
Post-employment benefits	559	550
	$ 18,750	$ 19,810

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

(VII) Others

Since 2018, the company has provided the roof of its own factory building as a site for Tongfa Green Energy Co., Ltd. to install solar power generation equipment.

XXX. Mortgaged Assets

The following assets of the company have been passed financing quota as collaterals, and guarantee deposits of purchasing goods from manufacturers.

	December 31, 2025	December 31, 2024
Land	$ 17,700	$ 17,700
Buildings	307	481
	$ 18,007	$ 18,181
Restricted assets	$ 500	$ 500

XXXI. Significant or Indebted and Unrecognized Contractual Commitments

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

Commitments for equipment purchasing and project contracts

December 31, 2025

December 31, 2024

$ 6,880

$ 8,831

XXXII. Assets and Liabilities Denominated in Foreign Currencies

The company'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
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)	$ -

XXXIII. 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 company 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 company 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.

Evertex Fabrinology Limited

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
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

Note5: $^{\ast}\mathrm{NTD}$ thousand, thousands of shares

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

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

January 1, 2025 to December 31, 2025

Table 3
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, 2025	December 31, 2024	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	Subsidiary

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

§STATEMENTS OF MAJOR ACCOUNTING ITEMS§

ITEMS	STATEMENT INDEX
Major Accounting Items in Assets, Liabilities and Equity
Statement of cash and cash equivalents	Statement 1
Statement of financial assets at FVTPL	Note 7
Statement of financial assets at FVTOCI	Note 8
Financial Assets Measured at Amortized Cost
Schedule of Changes in Non-current Assets	Note 9
Statement of notes receivable, net	Statement 2
Statement of accounts receivable, net	Statement 3
Statement of inventories	Statement 4
Statement of other current assets	Note 12
Schedule of Changes in Investment Using the Equity Method	Statement 5
Statement of changes in property, plant and equipment	Note 14
Statement of changes in accumulated depreciation and accumulated impairment of property, plant and equipment	Note 14
Statement of changes in right-of-use assets	Statement 6
Statement of changes in accumulated depreciation of right-of-use assets	Statement 7
Details of changes in investment properties	Note 16
Details of changes in accumulated depreciation of investment properties	Note 16
Statement of Intangible assets	Note 17
Statement of deferred income tax assets	Note 24
Statement of contract liabilities	Statement 8
Statement of notes payable	Statement 9
Statement of accounts payable	Statement 10
Statement of other payables	Note 19
Statement of lease liabilities	Statement 11
Statement of deferred income tax liabilities	Note 24
Statement of other current liabilities	Note 20
Major Accounting Items in Profit or Loss
Statement of operating revenue	Statement 12
Statement of operating costs	Statement 13
Statement of manufacturing expenses	Statement 14
Statement of operating expenses	Statement 15
Statement of financial cost	Note 23
Statement of other operating income and expenses	Note 23
Statement of labor, depreciation and amortization by function	Statement 16

Evertex Fabrinology Limited
Statement of cash and cash equivalent
December 31,2025

Statement 1
Unit: Unless otherwise noted, it is NT$ thousand

Items	Description	Amount
Petty cash		$ 261
Checking accounts and Demand deposits	Current Deposit	71,421
	Foreign Currency Deposit	42,811
	Check Deposit	47,561
Cash equivalent	Fixed deposit	67,311
		$ 229,365

Note: foreign currency deposits are translated at the spot exchange rate of USD = NTD31.43 ; EUR = NTD36.90 ; JPY = NTD0.2008 on the balance sheet date.

Evertex Fabrinology Limited
Statement of Notes Receivable, Net
December 31,2025

Items	Client Name	Amounts
Notes Receivable—related party	Client A	$ 2,078
	Client B	1,345
		3,423
Less: Allowance for doubtful accounts		-
		$ 3,423

Note: The amount from each individual client included under “others” does not exceed 5% of the total account balance.

Evertex Fabrinology Limited
Statement of Accounts Receivable, Net
December 31,2025

Statement 3		Unit:NT$ thousand
Items	Client Name	Amounts
Accounts Receivable – related party	Client A	$ 13,828
	Client B	6,248
	Client C	8,282
	Client D	3,240
	Client E	5,198
	Client F	8,936
	Client G	3,465
	Others (Note)	18,341
		67,538
Less: Allowance for doubtful accounts		( 806 )
		$ 66,732

Note: The amount from each individual client included under “others” does not exceed 5% of the total account balance.

Evertex Fabrinology Limited
Statement of inventories
December 31,2025

Statement 4
Unit:NT$ thousand

Item	Amounts	Net Realizable Value	Guarantee situation
Raw materials	$ 80,350	$ 83,542	None
Work in process	47,888	93,045	〃
Finished goods	2,324	3,819	〃
Materials	4,318	4,391	〃
	$ 134,880	$ 184,797

Evertex Fabrinology Limited
Schedule of Changes in Investment Using the Equity Method
2025

Statement 5

Unit: Unless otherwise noted, it is NT$ thousand

	Balance, January 1, 2024		Increase in Investment		Decrease in Investment		Profit or Loss from		Market Price and Net Asset Value
	Number of Shares	Amounts	Number of Shares	Investments (Note2)	Number of Shares	Amounts (Note1)	Investments (Note2)	Number of Shares	Shareholding Ratio(%)	Amount	Unit Price	Amounts	Provision of Guarantee Invested Company or Pledge
Tung Fa Liu Neng Co., Ltd.	4,600,000	$ 52,728	-	$ -	-	($ 3,643)	$ 3,765	4,600,000	100	$ 52,850	11.49	$ 52,850	✘

Note1: Reduction of amount in this year is cash dividends paid
Note2: Recognized as Financial Statements Audited by Accountants.

Evertex Fabrinology Limited

Statement of changes in right-of-use assets

2025

Statement 6

Unit:NT$ thousand

Item	Balance, January 1, 2025	Increase During the Year	Decrease During the Year	Balance, December 31, 2025	Note
Buildings、Transportation equipment and Other Equipment	$ 22,325	$ 2,219	$ -	$ 24,544

Evertex Fabrinology Limited

Statement of changes in accumulated depreciation of right-of-use assets

2025

Statement 7
Unit:NT$ thousand

	Balance, January 1, 2025	Increase During the Year	Decrease During the Year	Balance, December 31, 2025	Note
Buildings、Transportation equipment and Other Equipment	$ 15,682	$ 3,905	$ -	$ 19,587

Evertex Fabrinology Limited
Statement of contract liabilities
December 31,2025

Statement 8
Unit:NT$ thousand

Client Name	Description	Amounts
Client H	Commodity Sales	$ 655
Client I	〃	3,766
Client J	〃	1,512
Others(Note)	〃	1,002
		$ 6,935

Evertex Fabrinology Limited
Statement of notes payable
December 31,2025

Statement 9
Unit:NT$ thousand

Vendor Name	Description	Amounts
Non-related party
Vendor K	Payment	$ 2,176
Vendor L	〃	658
Vendor M	〃	642
Vendor N	〃	1,672
Vendor O	〃	1,076
Vendor P	〃	989
Vendor Q	〃	1,337
Others(Note)	〃	3,431
		$ 11,981

Note: The amount of accounts payable due to each individual vendor under "others" does not exceed 5% of the total account balance

Evertex Fabrinology Limited
Statement of Accounts payable
December 31,2025

Statement 10
Unit:NT$ thousand

Vendor Name	Description	Amounts
Non-related party
Vendor K	Payment	$ 1,135
Vendor O	〃	1,044
Vendor Q	〃	967
Vendor R	〃	1,481
Vendor S	〃	1,812
Vendor T	〃	2,623
Others(Note)	〃	6,923
		$ 15,985

Note: The amount of contract liabilities due to each individual under "others" does not exceed 5% of total account balance.

Evertex Fabrinology Limited
Statement of lease liabilities
December 31,2025

Statement 11
Unit:NT$ thousand

	Description	Lease Term	Discount Rate	Balance, End of Year
Buildings、Transportation equipment and Other Equipment	Offices, official vehicles and forklifts	1~5年	1.15%~2.43%	$ 5,054
Less: Listed as current part				( 2,874 )
Lease liabilities - current				$ 2,180

Evertex Fabrinology Limited
Statement of operating revenue
2025

Statement 12
Unit:NT$ thousand

Item	Description	Weight (metric tons)	Amounts
Merchandise sales revenue	round weave	890	$ 555,125
	warp knitting	413	104,775
	Others		1,729
Less: Sales discount			( 363 )
			661,266
Service revenue	warp knitting	963	67,767
	round weave	772	60,450
	fabric woven	35	2,740
	Others		1,153
Less: Sales discount			( 726 )
			131,384
			$ 792,650

Evertex Fabrinology Limited
Statement of Operating Costs
2025

Statement 13
Unit:NT$ thousand

Item	Cost of Goods Sold	Service Cost	Amount
Raw material
Balance, beginning of year	$ 49,672	$ 38,502	$ 88,174
Add: raw materials purchased this year	160,614	64,891	225,505
Less: raw materials, end of year	( 48,385)	( 31,965)	( 80,350)
Others	7,439	( 29)	7,410
	169,340	71,399	240,739
Direct labor	5,615	69,027	74,642
Manufacturing Expense (include unallocated)	195,400	69,593	264,993
Manufacturing costs	370,355	210,019	580,374
Add: work in process, beginning of year	65,289	-	65,289
Less: Work in process, end of year	( 47,888)	-	( 47,888)
Less: others	( 8)	-	( 8)
	387,748	210,019	597,767
Add: Finished goods, beginning of year	1,916	2,856	4,772
Less: Finished goods, end of year	( 955)	( 1,369)	( 2,324)
Less: revenue from sale of leftovers and scrap	-	( 649)	( 649)
Add: others	5,037	-	5,037
Operating cost	$ 393,746	$ 210,857	$ 604,603

Evertex Fabrinology Limited

Statement of manufacturing expenses

2025

Statement 14	Unit:NT$ thousand
Item	Amounts
Depreciation expenses	$ 38,253
fuel cost	64,028
Utilities	35,895
Salaries (include pension)	31,508
Processing expenses	31,247
Environmental protection expenses	13,290
Other expenses (Note)	50,772
	$ 264,993

Note: The amount of each item under “others” does not exceed 5% of the total account balance.

Evertex Fabrinology Limited
Statement of operating expenses
2025

Statement 15
Unit: Unless otherwise noted, it is NT$ thousand

| Item | Selling Expenses | Administrative Expenses | Expected Credit impairment losses
Reversed gain | Amount |
| --- | --- | --- | --- | --- |
| Salaries (include pension) | $ 40,731 | $ 18,037 | $ - | $ 58,768 |
| Delivery fee | 7,472 | - | - | 7,472 |
| Export charges | 6,728 | - | - | 6,728 |
| Research and evelopment | 4,391 | - | - | 4,391 |
| Director's remuneration | - | 4,567 | - | 4,567 |
| Performing business fees | - | 2,399 | - | 2,399 |
| Expected credit impairment losses | - | - | 135 | 135 |
| Other expenses (Note) | 19,837 | 5,221 | - | 25,058 |
| | $ 79,159 | $ 30,224 | $ 135 | $ 109,518 |

Note: The amount of each item under “others” does not exceed 5% of the total account balance

Evertex Fabrinology Limited
Summary Current Period of Employee Benefits, Depreciation and Expenses Incurred
In 2025 and 2024

Statement 16
Unit:NT$ thousand

	2024			2023
	Classified as Cost of Revenue	Classified as Operating Expenses	Amount	Classified as Cost of Revenue	Classified as Operating Expenses	Amount
Labor cost (Note)
Payroll expenses	$ 103,241	$ 56,609	$ 159,850	$ 103,883	$ 58,138	$ 162,021
Labor and health insurance expenses	10,885	4,565	15,450	10,044	4,325	14,369
Pension	3,295	2,159	5,454	3,188	2,092	5,280
Remuneration of directors	-	4,567	4,567	-	5,688	5,688
Other employees benefit expenses	2,258	2,770	5,028	2,785	2,000	4,785
	$ 119,679	$ 70,670	$ 190,349	$ 119,900	$ 72,243	$ 192,143
Depreciaton expenses	$ 38,253	$ 3,568	$ 41,821	$ 43,090	$ 3,146	$ 46,236
Amortization expenses	$ -	$ 69	$ 69	$ -	$ 77	$ 77

Note:
1. As of December 31, 2024 and 2023, the Company had 255 and 263 employees, respectively. There were 9 non-employee directors for 2024 and 2023
2. (1) Average labor costs for the years ended December 31, 2024 and 2023 were NT$758 thousand and NT$658 thousand, respectively. (Total employee benefit expenses - Total director's remuneration/Number of employees - Number of directors who are not part-time employees)
(2) Average salary and bonus for the years ended December 31, 2024 and 2023 were NT$659 thousand and NT$563 thousand, respectively. (Total salary expenses/Number of employees - Number of directors who are not part-time employees)
3. The average salary and bonus increased by +17% year over year. (Average employee salary expense of the current year - Average employee salary expense of the previous year/Average employee salary expense of the previous year).
4. The company has an audit committee composed of independent directors to replace the supervisor.
5. The Company's compensation policies

Principles of the formulation of the Company's compensation policies

(1) Employees' compensation: Employees' compensation mainly includes basic salary (including base salary and meal allowance), performance bonus, personal performance annual salary adjustment and year-end bonus, etc. Salaries are determined based on the market rate, job category, academic experience, professional knowledge and skills, and professional years of experience; salaries offered are better than the average market salary in the same industry.
(2) Remuneration of managers is determined based on the Company's profitability and business strategy as well as the performance and contribution of the managers with reference to the market salary, and is reviewed by the compensation committee and submitted to the board of directors for approval.

(3) Remuneration of directors is based on the value of its participation and contribution to the company's operations, pay for the standards of peer industries. In addition, pay NT$10 thousand for transportation fee to every director monthly

(4) The independent directors of the company receive fixed remuneration monthly, and paid travel expenses based on actual attendance at the board meeting.

(5) Employees' bonuses: Bonuses are issued based on the Company's operating performance and the individual performance of the employees.

(6) Annual salary adjustments: The Company conducts salary adjustments once a year to motivate the long-term development of employees, taking into consideration the overall economic environment, operating profit, employee performance appraisal results, with reference to the average market salary and overall salary adjustment situation of other companies in the same industry.

Employees' compensation and remuneration of directors and supervisors

The Company accrued employees' compensation and remuneration of directors and supervisors at rates of no less than 3% and no higher than 3%, respectively, of net profit before income tax, employees' compensation, and remuneration of directors and supervisors, after offsetting accumulated deficits, if any3.

AI assistant

EVERTEX — Audit Report / Information 2025

51827_rns_2026-05-13_54d37622-8082-471c-ade0-7fc640bee867.pdf

Evertex Fabrinology Limited

§TABLE OF CONTENTS§

INDEPENDENT AUDITORS' REPORT

Opinion

Basis of Audit Opinion

Key Audit Matters

Authenticity of customers' sales income under specific credit conditions

Responsibilities of Management and Governance Unit to entity's Financial Statements

Responsibility of Accountant to Check Entity's Financial Statements

1. Financial Assets

(1) Measure category

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

2. Deferred Income Tax

3. Current and Deferred Income Tax

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

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

IX. Financial Assets Measured at Amortized Cost

(II)Other receivables

XI. Inventory

XV. Lease Arrangement

(I) Right-of-use Assets

XVI. Intangible Assets

XVII. Intangible Assets

XX. Other Current Liabilities

XX. Post-retirement Benefits Plan

(I) Determine the allocation plan

(II) Determine the benefit plan

XXII. Equity

(I) Common stock

XXIII. Net Income

(I) Operating revenue

Contract balance

(II) Other operating income and expenses

(III) Interest Income

(IV) Other Revenue

(V) Other Revenues and Losses

XXIV. Income Tax

XXVI. Cash Flow Information

(I) Non-cash transactions

Sensitivity analysis

Sensitivity analysis

2. Credit Risk

3. Liquidity risk

(III) Lease Agreement

(IV) Related Party Payable

(V) Acquired property, plant and equipment

(VI) Remuneration of key management personnel

XXXII. Assets and Liabilities Denominated in Foreign Currencies

XXXIII. Separately Disclosed Items

(I) Information about significant transactions

(II) Information on reinvestment business: Table 3

(III) Information on investments in China

Evertex Fabrinology Limited

Evertex Fabrinology Limited

Statement of changes in right-of-use assets

Evertex Fabrinology Limited

Statement of manufacturing expenses

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EVERTEX Audit Report / Information 2025