Stock Code: 1616

Evertop Wire Cable Corporation and Subsidiaries

Consolidated Financial Statements and Independent Auditor's Report

2025 and 2024

Company address: 1F., No. 1, Ln. 91, Sec. 2, Ren'ai Rd., Taipei City
Tel: (02)23218855

~1~

Item	Page
I. Cover page	1
II. Table of Contents	2
III. Statement	3
IV. Independent Auditors’ Report	4
V. Consolidated Balance Sheet	5
VI. Consolidated Statements of Comprehensive Income	6
VII. Consolidated Statement of Changes in Equity	7
VIII. Consolidated Statements of Cash Flows	8
IX. Notes to Consolidated Financial Statements
(I) Company History	9
(II) Approval Date and Procedures of the Consolidated Financial Statements	9
(III) Application of New Standards, Amendments and Interpretations	9~11
(IV) Summary of Significant Accounting Policies	12~26
(V) Significant Accounting Assumptions and Judgments, and Major Sources of Estimation Uncertainty	26~27
(VI) Summary of Significant Accounting Items	27~53
(VII) Related Party Transaction	53~54
(VIII) Pledged Assets	54
(IX) Significant Contingent Liabilities and Unrecognized Commitments	54~56
(X) Losses Due to Major Disasters	56
(XI) Significant Events	56
(XII) Others	56
(XIII) Additional Disclosures
1. Information on Significant Transactions	56~58
2. Information on Investees	58
3. Information on Investment in China	58~59
(XIV) Segment Information	59~60

~2~

Statement

In connection with the Consolidated Financial Statements of Affiliated Enterprises of EVERTOP WIRE CABLE CORPORATION (the "Consolidated FS of the Affiliates"), we represent to you that the entities required to be included in the Consolidated FS of the Affiliates as of and for the year ended December 31, 2025 in accordance with the "Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports, and Consolidated Financial Statements of Affiliated Enterprises" are the same as those required to be included in the Consolidated Financial Statements of EVERTOP WIRE CABLE CORPORATION and its subsidiaries (the "Consolidated FS of the Group") in accordance with International Financial Reporting Standard 10. Additionally, the information required to be disclosed in the Consolidated FS of Affiliates is disclosed in the Consolidated FS of the Group. Consequently, EVERTOP WIRE CABLE CORPORATION does not prepare a separate set of Consolidated FS of Affiliates.

Declared by

Company name: Evertop Wire Cable Corporation

Chairman: Wang, Yin-Ho

Date: March 10, 2026

Independent Auditor's Report

To the Board of Directors of Evertop Wire Cable Corporation

Audit opinions

We have audited the accompanying consolidated financial statements of EVERTOP WIRE CABLE CORPORATION and its subsidiaries (the “Group”), which comprise the consolidated balance sheets as of from January 1 to December 31, 2025 and 2024, the related consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of from January 1 to December 31, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued by the Financial Supervisory Commission of the Republic of China.

Basis for Opinion

We conducted our audits in accordance with the Regulation Governing Auditing and Certification of Financial Statements by Certified Public Accountants and auditing standards. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the Norm of Professional Ethics for Certified Public Accountants of the R.O.C. and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the Group for the year ended December 31, 2025. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Key audit matters for the Company’s financial statements are states as follows:

~4~

I. Inventory Valuation

Description of Key Audit Matters:

For a description of accounting policies on valuation of inventories, please refer to Note 4(10), and for uncertainty of accounting estimates and assumptions in relation to valuation of inventories, please refer to Note 5. For details of inventories and related expenses, please refer to Note 6(6) of the accompanying consolidated financial statements.

The inventory of the Group include copper plates, cooper wires, and various wire and cable finished products. The value of such inventory continues to be affected by the international copper price fluctuation, such that there is a risk of inventory cost exceeding its net realizable value. Accordingly, inventory is determined to be significant to the parent company only financial statements, and we have listed as a key audit matter.

Corresponding Audit Procedures:

The main audit procedure adopted by the auditors of our firm for the aforementioned key audit matters includes: understanding the Group’s policy on allowance for inventory valuation loss, and assessing whether its inventory valuation has been executed according to the predefined accounting policy; performing the sampling procedure to inspect whether the source of the inventory realization value calculation is reasonable; analyzing the inventory age condition to understand the salability of inventory of relatively longer period and the basis for the calculation of its realizable value; reviewing the reasonableness of the allowance for inventory obsolescence adopted in the past, in order to assess whether the allowance for the inventory obsolescence method and assumption adopted in the current period are appropriate; reviewing the post-period international copper price fluctuation condition and the post-period actual sales condition of inventory, in order to assess the reasonableness of the allowance for inventory valuation estimates.

Other Matters

EVERTOP WIRE CABLE CORPORATION has prepared the unconsolidated financial statements for 2025 and 2024, to which we have also issued an independent auditor's report with unqualified opinion, along with a section on other matters and provided for reference.

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

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the IFRS, IAS, IFRIC, and SIC endorsed and issued into effect by the Financial Supervisory Commission of the R.O.C., and for necessary internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

~ 4-1 ~

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

Those charged with governance, including the Audit Committee, are responsible for overseeing the Group’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. The term of “reasonable assurance” refers to high level of assurance. Nevertheless, the audit performed according to the auditing standards cannot guarantee the discovery of material misstatement in the financial statements. Misstatements can arise from fraud or error. Misstatements are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the consolidated financial statements.

As part of an audit in accordance with the auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risk of material misstatement of the consolidated financial statements due to fraud or error, design and adopt appropriate countermeasures for the risks assessed, and obtain sufficient and appropriate audit evidence in order to be used as the basis for the opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control of the Group.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management level.
Conclude on the appropriateness of the management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Group to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.

~ 4-2 ~

Evaluate the overall presentation, structure and content of the consolidated financial statements, including relevant notes, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient and appropriate audit evidence for the financial information of individual entities of the Group and provide opinion on the consolidated financial statements. We handle the guidance, supervision and execution of the audit on the Group and are responsible for preparing the opinion for the Group.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the governance units with statements that we have complied with relevant matters that may reasonably be thought to bear on our independence, and we have also communicated with the governance units on all relationships and other matters (including relevant protective measures) that may be considered to affect the independence of auditors.

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

KPMG Taiwan

Certified Public Accountant:

Certificate No. Approved by the Competent Authority of Securities: March 10, 2026
Jin-Guan-Zheng-Shen-Zi No. 1010004977

~ 4- 3 ~

~5~

Evertop Wire Cable Corporation and Subsidiaries

Consolidated Balance Sheet

December 31, 2025 and 2024

Unit: NT$ thousands

	2025.12.31		2024.12.31			2025.12.31		2024.12.31
	Assets	Amount	%	Amount	%	Liabilities and Equity	Amount	%	Amount
Current asset:						Current liabilities
1100	Cash and Cash Equivalents (Note 6(1))	$ 523,717	12	933,605	21	2100	Short-term borrowings (Note 6(11), 7 and 8)	$ 1,116,572	26
1110	Financial Assets at Fair Value Through Profit or Loss - Current (Note 6(2))	3,425	-	6,676	-	2120	Financial Liabilities at Fair Value Through Profit or Loss - Current (Note 6(2))	32,126	1
1170	Notes and Accounts Receivable (Note 6(4))	1,117,205	26	1,283,045	29	2130	Contract Liabilities - Current (Note 6(17))	102,332	3
130x	Inventories (Note 6(6))	1,362,648	32	1,018,617	23	2170	Note payable and accounts payable	512,526	12
1461	Non-current assets held for sale (Note 6(7))	-	-	-	-	2230	Current income tax liabilities	178,649	4
1476	Other Financial Assets (Notes 6(5) and 8)	294,417	7	151,011	4	2280	Lease Liabilities - Current (Note 6(12))	5,412	-
1479	Other Current Assets - Others	34,227	1	126,912	3	2300	Other current liabilities	99,316	2
		3,335,639	78	3,519,866	80			2,046,933	48
Non-current assets:						Non-current liabilities:
1517	Financial Assets at Fair Value Through Other Comprehensive Profit or Loss - Non-current (Note 6(3))	-	-	-	-	2580	Lease Liabilities - Non-current (Note 6(12))	718	-
1600	Property, plant and equipment (Note 6(8), 7 and 8)	835,235	20	776,512	18	2600	Other Non-current Liabilities (Note 6(14))	10,818	-
1755	Right-of-use Assets (Note 6(9))	10,342	-	18,362	-			11,536	-
1760	Investment property, net (Note 6(10))	4,771	-	11,646	-			2,058,469	48
1840	Deferred Tax Assets (Note 6(14))	40,499	1	41,160	2	3110	Common share capital	1,941,485	46
1990	Other non-current assets - others (Note 6(13))	49,834	1	13,079	-	3220	Capital Surplus - Treasury Stock Trading	10,869	-
		940,681	22	860,759	20	3310	Statutory reserves	47,138	1
						3320	Special reserves	1,479	-
						3351	Undistributed earnings	292,155	7
						3410	Exchange differences on translation of the financial statements of foreign operations	9,802	-
						3500	Treasury stocks	(85,077)	(2)
							Total equity	2,217,851	52
Total assets						$ 4,276,320	$ 4,276,320	$ 4,380,625	$ 100

(Please refer to the accompanying notes to the consolidated financial statements.)

^{}[]~6~

Evertop Wire Cable Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income

For the years ended December 31, 2025 and 2024

Unit: NT$ thousands

		2025		2024
		Amount	%	Amount	%
4110	Sales Revenue (note 6(17))	$ 5,210,800	100	4,594,048	100
4170	Less: Sales Allowance and Returns	3,159	-	949	-
	Net Sales Revenue	5,207,641	100	4,593,099	100
5000	Operating Costs (Notes 6(6), 6(13), and 12)	4,424,281	85	4,094,896	89
	Gross profit	783,360	15	498,203	11
	Operating Expenses (Notes 6(4), (13), 7, and 12):
6100	Selling expenses	79,458	2	58,965	1
6200	Administrative expenses	124,589	2	270,298	6
6300	Research and development expenses	7,330	-	7,999	-
6450	Expected credit impairment losses	12,329	-	-	-
	Total operating expenses	223,706	4	337,262	7
	Operating profit	559,654	11	160,941	4
	Non-operating income and expenses:
7010	Other Income (Note 6(19))	38,007	1	22,223	-
7020	Other Gains and Losses (Notes 6(20))	(142,801)	(3)	409,597	9
7050	Financial Costs (Note (12))	(56,423)	(1)	(51,859)	(1)
7100	Interest revenue	10,986	-	7,720	-
	Total non-operating incomes and expenses	(150,231)	(3)	387,681	8
	Profit before tax	409,423	8	548,622	12
7950	Less: Income Tax Expense (Note 6(14))	115,621	2	161,196	4
	Current period net profit	293,802	6	387,426	8
8300	Other comprehensive income:
8310	Items not reclassified subsequently to profit or loss
8311	Remeasurement of defined benefit programs (Note 6(13))	(2,405)	-	2,490	-
8349	Less: Income Taxes Related to the Items Not Reclassified	-	-	-	-
		(2,405)	-	2,490	-
8360	Items that may be reclassified subsequently to profit or loss
8361	Exchange differences on translation of the financial statements of foreign operations	(40,508)	(1)	15,889	-
8399	Less: Income Tax Relating to Items That May be Reclassified (Note 6(14))	-	-	3,178	-
	Total of Items That May be Reclassified Subsequently to Profit or Loss	(40,508)	(1)	12,711	-
8300	Other comprehensive income recognized for the period	(42,913)	(1)	15,201	-
	Total comprehensive income for this period	$ 250,889	5	402,627	8
	Net income for the period attributable to:
	Owners of the Company	$ 293,802	6	387,426	8
	Total comprehensive income attributable to:
	Owners of the Company	$ 250,889	5	402,627	8
	Basic Earnings Per Share (NT$) (Note 6(16))	$	1.55		2.04
	Diluted Earnings Per Share (NT$) (Note 6(16))	$	1.55		2.04

(Please refer to the accompanying notes to the consolidated financial statements.)

Unit: NT$ thousands

Evertop Wire Cable Corporation and Subsidiaries

Consolidated Statement of Changes in Equity

For the years ended December 31, 2025 and 2024

	Equity attributable to owners of parent company
	Common share capital	Additional paid-in capital	Statutory reserves	Special reserves	Undistributed earnings	Other equities Exchange differences on translation of the financial statements of foreign operations	Treasury stocks	Total Equity Attributable to Owners of the Parent Company	Total equity
Balance, January 1, 2024	$ 1,941,485	2,480	-	-	81,460	(61,793)	(85,077)	1,878,555	1,878,555
Current period net profit	-	-	-	-	387,426	-	-	387,426	387,426
Other comprehensive income recognized for the period	-	-	-	-	2,490	12,711	-	15,201	15,201
Total comprehensive income for this period	-	-	-	-	389,916	12,711	-	402,627	402,627
Provision of legal reserve	-	-	8,146	-	(8,146)	-	-	-	-
Provision of special reserve	-	-	-	738	(738)	-	-	-	-
Cash dividends on common shares	-	-	-	-	(71,835)	-	-	(71,835)	(71,835)
Balance, December 31, 2024	1,941,485	2,480	8,146	738	390,657	(49,082)	(85,077)	2,209,347	2,209,347
Current period net profit	-	-	-	-	293,802	-	-	293,802	293,802
Other comprehensive income recognized for the period	-	-	-	-	(2,405)	(40,508)	-	(42,913)	(42,913)
Total comprehensive income for this period	-	-	-	-	291,397	(40,508)	-	250,889	250,889
Provision of legal reserve	-	-	38,992	-	(38,992)	-	-	-	-
Provision of special reserve	-	-	-	741	(741)	-	-	-	-
Cash dividends on common shares	-	-	-	-	(350,166)	-	-	(350,166)	(350,166)
Adjustment to capital surplus for dividends distributed to subsidiaries	-	8,389	-	-	-	-	-	8,389	8,389
Disposal of subsidiaries accounted for using the equity method	-	-	-	-	-	99,392	-	99,392	99,392
Balance, December 31, 2025	$ 1,941,485	10,869	47,138	1,479	292,155	9,802	(85,077)	2,217,851	2,217,851

(Please refer to the accompanying notes to the consolidated financial statements.)

~7~

~8~

Evertop Wire Cable Corporation and Subsidiaries

Consolidated Statements of Cash Flows

For the years ended December 31, 2025 and 2024

Unit: NT$ thousands

	2025	2024
Cash flows from operating activities:
Income before income tax	$ 409,423	548,622
Adjustments:
Income/expenses items
Depreciation and Amortization Expenses	48,986	49,239
Expected credit impairment losses	12,329	-
Net (Gain) Loss on Financial Assets and Liabilities at Fair Value Through Profit or Loss	(82,355)	1,693
Interest expenses	56,423	51,859
Interest revenue	(10,986)	(7,720)
Gain on disposal of property, plant and equipment	(498)	(468,061)
Loss on disposal of investments accounted for using the equity method	99,392	-
Loss on (reversal of) inventory write-down and inventory obsolescence losses	(11,605)	11,958
Impairment loss	-	17,250
Others	167	-
Total Income/Expense Items	111,853	(343,782)
Changes in assets/debts having to do with business activities:
Net Change in Assets Related to Operating Activities:
Financial Assets and Liabilities at FVTPL	108,749	5,786
Notes and Accounts Receivable	155,739	(318,741)
Inventories	(332,426)	153,962
Other current assets	92,685	(101,881)
Other Financial Assets	(10,205)	14,928
Net defined benefit assets	(9,256)	-
Total Net Change in Assets Related to Operating Activities	5,286	(245,946)
Net Change in Liabilities Related to Operating Activities:
Note payable and accounts payable	(60,804)	82,021
Other current liabilities	(104,811)	135,232
Net defined benefit liability - non-current	-	92
Total Net Change in Liabilities Related to Operating Activities	(165,615)	217,345
Total Net Change in Assets and Liabilities Related to Operating Activities	(160,329)	(28,601)
Total Adjustment Items	(48,476)	(372,383)
Cash inflow provided by operating activities	360,947	176,239
Interest received	10,986	7,720
Interest paid	(56,520)	(44,777)
Income tax paid	(70,093)	(257,148)
Net cash inflow (outflow) from operating activities	245,320	(117,966)
Cash flows from investing activities:
Acquisition of property, plant and equipment	(94,190)	(44,848)
Proceeds from disposal of property, plant and equipment and non-current assets held for sale	1,533	503,097
Decrease (increase) in restricted bank deposits	39,267	(17,630)
Decrease (increase) in guarantee deposits	(204,431)	21,313
Increase in other non-current assets	2,018	-
Net cash inflow (outflow) from investing activities	(255,803)	461,932
Cash flows from financing activities:
Increase (decrease) in short-term borrowings	(8,366)	650,704
Repayment of long-term borrowings	-	(130,000)
Decrease in guarantee deposits received	(281)	(119)
Repayment of Lease Principal	(6,907)	(6,625)
Distribution of cash dividends	(341,777)	(71,835)
Net cash (outflow) inflow from financing activities	(357,331)	442,125
Effect of exchange rate changes on cash and cash equivalents	(42,074)	15,927
Increase (Decrease) of Cash and Cash Equivalents for the Period	(409,888)	802,018
Cash and cash equivalents at the beginning of the year	933,605	131,587
Cash and cash equivalents at the end of the year	$ 523,717	933,605

(Please refer to the accompanying notes to the consolidated financial statements.)

~9~

Evertop Wire Cable Corporation and Subsidiaries

Notes to Consolidated Financial Statements

2025 and 2024
(In NT$ thousands, unless stated otherwise)

I Company History

Evertop Wire Cable Corporation (hereinafter referred to as “the Company”) was established on March 21, 1988 with the approval of the Ministry of Economic Affairs and its registered office is located at 1F, No. 1, Lane 91, Section 2, Renai Road, Taipei City, Taiwan. The Company and its subsidiaries (the “Group”) are engaged in the manufacture, processing, sale, and installation of bare cooper wires, tinned wires, power cables, insulated wires, coaxial cables, PVC wire cables, XLPE high and low voltage power cables, telecommunication cables, fiber optic cables, and rubber cables.

II Approval Date and Procedures of the Consolidated Financial Statements

These consolidated financial statements were approved by the Board of Directors on March 10, 2026.

III Application of New Standards, Amendments and Interpretations

(I) The impact of the new standards, amendments and interpretations endorsed by the Financial Supervisory Commission, R.O.C. (“FSC”) which have already been adopted:

The Group has initially adopted the following new IFRS amendments, which do not have a significant impact on its consolidated financial statements, from January 1, 2025.

Amendments to IAS No. 21 "Lack of Exchangeability"

Amendments to IFRS 9 and IFRS 7 Classification and Measurement of Financial Instruments, regarding the application guidance on Section 4.1 of IFRS 9 and the related disclosure requirements of IFRS 7.

(II) The impact of IFRS endorsed by the FSC but not yet effective:

The Group assesses that the adoption of the following new IFRS/IAS amendments, effective for the annual period beginning on January 1, 2025, would not have a significant impact on its consolidated financial statements.

IFRS 17 “Insurance Contracts” and amendments to IFRS 17 “Insurance Contracts”.
Amendments to IFRS 9 and IFRS 7 "Classification and Measurement of Financial Instruments", regarding the application guidance on Sections 3.1 and 3.3 of IFRS 9 and the related disclosure requirements of IFRS 7.
Annual Improvements to IFRS/IAS
Amendments to IFRS 9 and amendment to IFRS 7 “Nature-Dependent Electricity Contracts”.

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

(III) The impact of new standards, amendments and interpretations but not yet endorsed by the FSC

The following new and amended standards, which may be relevant to the Group, have been issued by the International Accounting Standards Board (IASB), but have yet to be endorsed by the FSC:

New or Amended Standards	Content of Amendment	Effective Date Issued by the IASB
IFRS 18 “Presentation and Disclosure in Financial Statements”.	The new standards introduce three categories of income and expenses, two subtotals in the statement of profit or loss, and a single note dedicated to management performance measures. These three amendments enhance the guidance on how information is disaggregated in financial statements, laying the foundation for providing users with better and more consistent information, and will affect all companies.

• A more structured statement of profit or loss: Under current standards, companies present their operating results using various formats, making it difficult for investors to compare financial performance across companies. The new standard adopts a more structured format for the statement of profit or loss by introducing a newly defined subtotal for “operating profit.” It also requires all income and expenses to be classified into three newly defined categories based on the company’s main business activities. | January 1, 2027

Note: On September 25, 2025, the Financial Supervisory Commission issued a press release announcing that Taiwan will adopt IFRS 18 starting from the 2028 fiscal year. Companies wishing to adopt the standard early may do so upon approval by the Financial Supervisory Commission. |

~11~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

Management Performance Measures (MPMs): The new standard introduces a definition for Management Performance Measures and requires companies to disclose them in a single note to the financial statements. For each measure, companies must explain why it provides useful information, how it is calculated, and how it reconciles with amounts recognized in accordance with IFRS/IAS.
More Disaggregated Information: The new standard includes guidance on how companies should enhance the grouping of information in financial statements. This includes guidance on whether information should be presented in the primary financial statements or further disaggregated in the notes to the financial statements.

The Group is evaluating the impact of its initial adoption of the abovementioned standards or interpretations on its consolidated financial position and consolidated financial performance. The results thereof will be disclosed when the Group completes its evaluation.

The Group does not expect the other new and amended standards, which have yet to be endorsed by the FSC, to have a significant impact on its consolidated financial statements.

Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”.
IFRS 19 “Subsidiaries without Public Accountability: Disclosures” and amendments to IFRS 19.
Amendments to IAS 21 “Translation into a Hyperinflationary Presentation Currency”

~12~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

IV Summary of Significant Accounting Policies

The significant accounting policies presented in the consolidated financial statements are summarized as follows. The accounting policies have been applied consistently to all periods presented in these consolidated financial statements.

(I) Compliance Statement

The consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (hereinafter referred to as “the Regulations”) and the IFRSs, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations endorsed by the FSC (hereinafter referred to IFRS endorsed by the FSC).

(II) Basis of Consolidation

Principles for preparing consolidated financial statements

The consolidated financial statements incorporate the financial statements of the Company and its subsidiaries. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases. Transactions and balances, and any unrealized income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements. The comprehensive income from subsidiaries is allocated to the Company and its non-controlling interests, even if doing so causes the non-controlling interests to have a deficit balance.

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

Changes in the Group's ownership interests in subsidiaries that do not result in the Group losing control over its subsidiaries are accounted for as equity transactions. Any differences between the amount by which the noncontrolling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to the shareholders of the parent.

Subsidiaries incorporated in the consolidated financial statements

List of the Subsidiaries Included in the Consolidated Financial Statements:

Name of investment company	Company Name	Main Business	% of Ownership
			2025.12.31	2024.12.31	Explanation
The Company	Evertop (British Virgin	Investment	100%	100%

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

	Islands) Co., Ltd.
#	Yifu Investment Co., Ltd. (Yifu Investment)	#	99.95%	99.95%
#	EVERTOP HITEK (VIETNAM) CO., LTD (Evertop Vietnam)	Processing, manufacturing, and trading of enameled wires, wires and cables	100%	100%	Note 1
Evertop (British Virgin Islands) Co., Ltd.	Asia Victory Limited (Asia Victory H.K.)	Investment	100%	100%
#	Taiko Industrial Co., Ltd. (Taiko Industrial H.K.)	#	100%	100%
Asia Victory Limited	EVERTOP (DONG GUAN) WIRE CABLE CO., LTD. (EVERTOP (DONG GUAN))	Processing, manufacturing, and trading of wires and cables	100%	100%
Taiko Industrial Co., Ltd.	Evertop (Suzhou) Wire and Cable Co., Ltd. (Evertop Suzhou)	Manufacturing and trading of optoelectronic supplies, computer connectors, and related products	100%	100%

Note 1: In liquidation during 2025.

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

The Group classifies an asset as current under one of the following criteria, and all other assets are classified as non-current:

It is expected to be realized or intended to be sold or consumed in the normal operating cycle of the Company;
It is held primarily for the purpose of trading;
It is expected to be realized within twelve months after the reporting period; or
The asset is cash or cash equivalent (as defined in IFRS 7) unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. or used to settle a liability for at least twelve months after the reporting period.

A liability is classified as current under one of the following criteria by the Group, and all other liabilities are classified as non-current:

It is expected to be settled in the normal operating cycle of the Company;
It is held primarily for the purpose of trading;
Liabilities are due to be settled within twelve months after the reporting date; or
At the end of the reporting period, there is no right to defer the settlement of the liability for at least twelve months after the reporting period.

(IV) Income taxes

~13~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

Income taxes comprise current taxes and deferred taxes. Except for expenses related to business combinations or recognized directly in equity or other comprehensive income, all current and deferred taxes are recognized in profit or loss.

Current income tax includes the estimated income tax payable or tax refund receivable calculated based on the taxable income (loss) of the current year, and any adjustment to prior year’s income tax payable or refunds receivable in the amount of the best estimate of the amount expected to be paid or received is measured using the tax rate under regulatory legislation.

Deferred income tax is measured and recognized on temporary differences between the carrying amount of assets and liabilities and their tax bases at the reporting date. Deferred taxes are recognized except for the following:

Assets or liabilities initially recognized in a transaction that is not a business merger, and at the time of the transaction (i) does not affect accounting profits and taxable income (loss) and (ii) do not give rise to equivalent taxable and deductible temporary differences;
Temporary differences related to investments in subsidiaries to the extent that the Group is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and
Taxable temporary differences arising on the initial recognition of goodwill.

Deferred taxes are measured at tax rates that are expected to be applied to temporary differences when they reserve, using tax rates enacted or substantively enacted on the reporting date.

Deferred tax assets and liabilities are offset if the following criteria are met:

The Group has a legally enforceable right to set off current tax assets against current tax liabilities; and
The deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on either:
(1) the same taxable entity; or
(2) Different taxable entities which intend to settle current tax assets and liabilities on a net basis, or to realize the assets and liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

Deferred tax assets are recognized for the carry forward of unused tax losses, unused tax credits, and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed

~14~

~15~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefits will be realized.

(V) Employee benefits

Defined contribution plans

Obligations for contributions to defined contribution plans are expensed as the related service is provided.

Defined benefit plan

The Group’s net obligation in respect of defined benefit plans is calculated by estimating the amount of future benefits that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.

The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a potential asset for the Group, the recognized asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, consideration is given to any applicable minimum funding requirements.

Re-measurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest), and the effect of the asset ceiling (if any, excluding interest), are recognized immediately in other comprehensive income, and accumulated in retained earnings within equity. The Group determined the net interest expenses (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (asset). Net interest expenses and other expenses related to defined benefit plans are recognized in profit or loss.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefits that relates to past service or the gain or loss on curtailment is recognized immediately in profit or loss. The Group recognizes gains and losses on the settlement of a defined benefit plan when the settlement occurs.

Short-term employee benefits

Short-term employee benefits are expensed as related service provided. A liability is recognized for the amount expected to be paid if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

(VI) Basis of preparation

~16~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

1. Measurement bases

Except for the following significant accounts, the consolidated financial statements have been prepared on a historical cost basis:

(1) Financial assets at fair value through profit or loss measured at fair value;

(2) Financial assets at fair value through other comprehensive profit or loss measured at fair value; and

(3) Net defined benefit liability is the fair value of pension fund assets less the present value of defined benefit obligation.

2. Functional and presentation currency

The functional currency of each entity of the Group is determined based on the primary economic environment in which each entity operates. The consolidated financial statements were expressed in NTD, which is the Company's functional currency. All financial information presented in New Taiwan Dollar has been rounded to the nearest thousand.

(VII) Foreign currency

1. Foreign currency transaction

Transactions in foreign currencies are translated into the respective functional currencies of the Company entities at the exchange rates on the dates of the transactions. At the end of each subsequent reporting period (hereinafter referred to as "reporting date"), monetary items denominated in foreign currencies are translated into the functional currency using the exchange rate at that date. Non-monetary items denominated in foreign currencies that are measured at fair value are translated into the functional currency using the exchange rate on the date that the fair value was determined. Non-monetary items denominated in foreign currencies that are measured based on historical cost are translated using the exchange rate on the date of the transaction.

Exchange differences are generally recognized in profit or loss, except for investment in equity securities designated as at fair value through other comprehensive income which is recognized in other comprehensive income.

2. Foreign operation

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising from acquisition, are translated into New Taiwan Dollars at the exchange rates on the reporting date. The income and expenses of foreign operations are translated into New Taiwan Dollars on the average exchange rate. Exchange differences are recognized in other comprehensive income.

When a foreign operation is disposed of such that control, joint control, or significant

~17~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

influence is lost, the cumulative amount in the translation reserve related to that foreign operation is reclassified to profit or loss. When the Company disposes of only part of its interest in a subsidiary that includes a foreign operation while retaining control, the relevant proportion of the cumulative amount is reattributed to noncontrolling interests. When the Company disposes of only part of its investment in an associate or joint venture that includes a foreign operation while retaining significant influence or joint control, the relevant proportion of the cumulative amount is reclassified to profit or loss.

When the settlement of a monetary receivable from or payable to a foreign operation is neither planned nor likely to occur in the foreseeable future, exchange differences arising from such a monetary item that are considered to form part of the net investment in the foreign operation are recognized in other comprehensive income.

(VIII) Cash and cash equivalents

Cash comprises cash on hand and demand deposits. Cash equivalents are short-term highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. Time deposits which meet the above definition and are held for the purpose of meeting short-term cash commitments rather than for investment or other purposes should be recognized as cash equivalents.

(IX) Financial instruments

Financial asset

If the purchase or sales of financial assets conform with conventional transactions, the Group shall adopt the accounting treatment on the transaction date for all purchases and sales of financial assets classified in the same way.

The Group classifies financial assets into the following categories: Financial assets measured at amortized cost, financial assets at fair value through other comprehensive income, and financial assets at fair value through. The Group reclassifies all affected financial assets only when it changes its business model for managing financial assets, and such reclassification is applied prospectively from the first day of the next reporting period.

(1) Financial assets measured at amortized cost

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:

It is held within a business model whose objective is to hold assets to collect contractual cash flows.
Its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

These assets are initially recognized at fair value plus directly attributable transaction costs and subsequently measured at amortized cost, which is the amount at which the financial asset is measured at initial recognition plus/minus the cumulative amortization using the effective interest method, adjusted for any loss allowance. Interest income, foreign exchange gains and losses, as well as impairment, are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.

(2) Financial assets at FVTOCI

A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:

It is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets.
Its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to present subsequent changes in the investment’s fair value in other comprehensive income. This election is made on an instrument-by-instrument basis.

Debt investments at FVOCI are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognized in profit or loss. Other net gains and losses are recognized in other comprehensive income. On derecognition, gains and losses accumulated in other comprehensive income are reclassified to profit or loss.

Equity investments at FVOCI are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized in other comprehensive income and are never reclassified to profit or loss.

Dividend income is recognized in profit or loss on the date on which the Group’s right to receive payment is established (it’s usually on Ex-dividend date).

(3) Financial assets at FVTPL

All financial assets not classified as amortized cost or FVOCI described as above are measured at FVTPL, including derivative financial assets. On initial recognition, the Group may irrevocably designate a financial asset, which meets the requirements to be measured at amortized cost or at FVOCI, as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

Financial assets in this category are recognized at fair value on initial recognition.

~18~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

Transaction costs are recognized in profit or loss when incurred. These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss.

(4) Impairment of financial assets

The Group recognizes the impairment provision for expected credit losses (ECL) on financial assets measured at amortized cost (including cash and cash equivalents, notes and accounts receivable, other receivables, refundable deposit paid, and other financial assets) and contract assets.

The Company measures an impairment provision at an amount equal to lifetime ECLs, except for the following which are measured as 12-month ECLs:

Debt securities that are determined to have low credit risk at the reporting date; and
Other debt securities and bank balances for which credit risk (i.e., the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition.

Impairment provision for trade receivables are always measured at an amount equal to lifetime ECLs.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECL, the Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis based on the Group’s historical experience and informed credit assessment as well as forward-looking information.

Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument.

12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).

The maximum period considered when estimating ECL is the maximum contractual period over which the Group is exposed to credit risk.

ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e., the difference between the cash flows due to the Group in accordance with the contract and the cash flows that the Group expects to receive). ECLs are discounted at the effective interest rate of the financial asset.

At each reporting date, the Group assesses whether financial assets carried at

~19~

~20~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

amortized cost and debt securities at FVOCI are credit-impaired. A financial asset is 'credit-impaired' when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. Evidence that a financial asset is credit-impaired includes the following observable data:

Significant financial difficulty of the borrower or issuer;
A breach of contract such as a default or being past due;
The lender of the borrower, for economic or contractual reasons relating to the borrower's financial difficulty, having granted to the borrower a concession that the lender would not otherwise consider;
It is probable that the borrower will enter bankruptcy or other financial reorganization; or
The disappearance of an active market for a security because of financial difficulties.

The gross carrying amount of a financial asset is written off when the Group has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. The Group individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. The Group expects no significant recovery from the amount written off.

(5) Derecognition of financial assets

The Group derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Group neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

The Group enters into transactions whereby it transfers assets recognized in its statement of balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognized.

Financial liabilities and equity instruments

(1) Classification of debt or equity

Debt and equity instruments issued by the Group are classified as financial liabilities or equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

(2) Equity trading

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

An equity instrument is any contract that evidences residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued are recognized as the amount of consideration received, less the direct cost of issuing.

(3) Treasury stocks

When shares recognized as equity are repurchased, the amount of the consideration paid, which includes directly attributable costs, is recognized as a deduction from equity. Repurchased shares are classified as treasury stocks. When treasury shares are sold or reissued subsequently, the amount received is recognized as an increase in equity, and the resulting surplus or deficit on the transaction is recognized in capital surplus or retained earnings (if the capital surplus is not sufficient to be written down).

(4) Financial liability

Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, it is a derivative, or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value, and net gains and losses, including any interest expense, are recognized in profit or loss.

Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on derecognition is also recognized in profit or loss.

(5) Derecognition of financial liabilities

The Group derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. The Company also derecognizes a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value.

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

(6) Offsetting of financial assets and liabilities

Financial assets and financial liabilities are offset and the net amount presented in the statement of the balance sheet when, and only when, the Group currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously.

~21~

~22~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

3. Derivative financial instruments

The Group holds derivative financial instruments to hedge its foreign currency exposures. Derivatives are initially measured at fair value. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are generally recognized in profit or loss.

(X) Inventories

Inventories are measured at the lower of cost and net realizable value. The cost of inventories is calculated using the weighted-average method, and includes expenditure incurred in acquiring the inventories, production or conversion costs, and other costs incurred in bringing them to their present location and condition. In the case of manufactured inventories and work in progress, costs include an appropriate share of production overhead based on normal operating capacity.

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.

(XI) Investment property

Investment property is property held either to earn rental income or for capital appreciation or for both, but not for sale in the ordinary course of business, used in the production or supply of goods or services, or for administrative purposes. Investment property is measured at cost on initial recognition, and subsequently at cost, less accumulated depreciation and accumulated impairment losses. Depreciation expense is calculated based on the depreciation method, useful life, and residual value which are the same as those adopted for property, plants, and equipment.

Any gain or loss on disposal of an investment property (calculated as the difference between the net proceeds from disposal and the carrying amount) is recognized in profit or loss.

Rental income from investment property is recognized as other income on a straight-line basis over the term of the lease. Lease incentives granted are recognized as an integral part of the total rental income over the term of the lease.

(XII) Property, plant and equipment

1. Recognition and measurement

Items of property, plants, and equipment are measured at cost, which includes capitalized borrowing costs, less accumulated depreciation and accumulated impairment losses.

If significant parts of an item of property, plants, and equipment have different useful

~23~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

lives, they are accounted for as separate items (major components) of property, plants, and equipment.

Any gain or loss on disposal of an item of property, plants, and equipment is recognized in profit or loss.

Subsequent expenditure

Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to the Group.

Depreciation

Depreciation is calculated on the cost of an asset less its residual value and is recognized in profit or loss on a straight-line basis over the estimated useful lives of each component.

Land is not depreciated.

The estimated useful lives of property, plants, and equipment for current and comparative periods are as follows:

(1) Buildings 40~55 years
(2) Facilities and equipment for buildings 3~35 years
(3) Machinery and equipment 2~15 years
(4) Leased improvements and other equipment 1~15 years

Depreciation methods, useful lives, and residual values are reviewed on each reporting date and adjusted if appropriate.

(XIII) Lease

Identifying a lease

At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

Lessee

The Group recognizes a right-of-use asset and a lease liability on the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain re-measurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid on the commencement date. Discounted using the interest rate implicit in the lease or, if that rate cannot be reliably determined, the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the lease liability comprise the following:

(1) Fixed payments, including in-substance fixed payments;
(2) Variable lease payments that depend on an index or a rate, initially measured using the index or rate as of the commencement date;
(3) Amounts expected to be payable under a residual value guarantee; and
(4) the exercise price of a purchase option or the penalties for terminating the lease, if it is reasonably certain that such options will be exercised.

The lease liability is measured at amortized cost using the effective interest method. It is re-measured when:

(1) There is a change in future lease payments arising from the change in an index or rate;
(2) There is a change in the Company’s estimate of the amount expected to be payable under a residual value guarantee;
(3) Changes in the assessment of a purchase option for the underlying asset;
(4) There is a change of its assessment on whether it will exercise an extension or termination option;
(5) Modifications to the underlying asset, scope, or other terms of the lease.

When the lease liability is re-measured, other than lease modifications, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or in profit and loss if the carrying amount of the right-of-use asset has been reduced to zero.

When the lease liability is re-measured to reflect the partial or full termination of the lease for lease modifications that decrease the scope of the lease, the Company accounts for the re-measurement of the lease liability by decreasing the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease, and recognize in profit or loss any gain or loss relating to the partial or full termination of the lease.

The Group presents right-of-use assets and lease liabilities that do not meet the definition of investment property as a separate line item respectively in the statement of

~24~

~25~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

balance sheet.

The Group allocates the consideration in the contract to each lease component on a relative stand-alone price basis. However, for the leases of land and buildings in which it is a lessee, the Group has elected not to separate non-lease components and account for the lease and non-lease components as a single lease component.

(XIV) Impairment of non-financial assets

On each reporting date, the Group reviews the carrying amounts of its non-financial assets (other than inventories and deferred tax assets) to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or cash-generating units (CGUs).

The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU.

An impairment loss is recognized if the recoverable amount of an asset or CGU is lower than its carrying amount.

(XV) Revenue recognition

Revenue from contracts with customers

Revenue is measured based on the consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer. The Group recognizes revenue when it satisfies a performance obligation by transferring control of a good or a service to a customer. The accounting policies for the Group’s main types of revenue are explained below:

(1) Sale of goods

The Group recognizes revenue when control of the products has been transferred. When the products are delivered to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, the acceptance provisions have lapsed, or the Group has objective evidence that all criteria for acceptance have been satisfied.

~26~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

A receivable is recognized when the goods are delivered as this is the point in time that the Group has a right to an amount of consideration that is unconditional.

(2) Financing components

The Group does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Group does not adjust any of the transaction prices for the time value of money.

(XVI) Earnings per Share

The Group discloses the Company’s basic and diluted earnings per share attributable to ordinary shareholders of the Company. The calculation of basic earnings per share is based on the profit attributable to ordinary shareholders of the Company divided by the weighted-average number of ordinary shares outstanding. The calculation of diluted earnings per share is based on the profit attributable to ordinary shareholders of the Company divided by the weighted-average number of ordinary shares outstanding after adjustment for the effects of all dilutive potential ordinary shares. The Company's potential diluted common stock includes estimated employee remuneration.

(XVII) Segment Information

An operating segment is a component of the Group that engages in business activities from which it may earn revenue and incur expenses (including revenue and expenses relating to transactions with other components of the Group). Operating results of the operating segment are regularly reviewed by the Group’s chief operating decision maker to make decisions about resources to be allocated to the segment and to assess its performance. Each operating segment consists of standalone financial information.

V Significant Accounting Assumptions and Judgments, and Major Sources of Estimation Uncertainty

When preparing the consolidated financial reports, management must make judgments and estimates about the future (including climate-related risks and opportunities), which will affect the adoption of accounting policies and the reported amounts of assets, liabilities, income, and expenses. Actual results may differ from these estimates.

Management continuously reviews estimates and underlying assumptions, which are consistent with the Group’s risk management and climate-related commitments. Changes in estimates are recognized during the period of change and are deferred for the affected future periods.

There are no critical judgments in applying the accounting policies that have a significant effect on the amounts recognized in the consolidated financial statements.

~27~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

The uncertainty of the following assumptions and estimates has a significant risk of causing a material adjustment to the book value of assets and liabilities in the next financial year. The relevant information is as follows:

(I) Valuation of inventories

As inventories are stated at the lower of cost or net realizable value, the Group estimates the net realizable value of inventories for obsolescence and unmarketable items at the end of the reporting period and then writes down the cost of inventories to net realizable value. The net realizable value of the inventory is mainly determined based on assumptions as to future demand within a specific time horizon, so there may be significant changes in the net realizable value of inventories.

The accounting policy and disclosure of the Group include measuring the financial assets, non-financial assets, and financial liabilities at fair value. The finance department of the Group uses external information to make the evaluation result agreeable to the market status and to ensure that the data resources are independent, reliable, and consistent with other resources. The finance department of the Group regularly revises the evaluation models and the input parameters, makes retrospective reviews, and makes essential adjustments to ensure that the evaluation results are reasonable.

When measuring the fair value of an asset or a liability, the Group uses market observable data as far as possible. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

Level 1: Quoted prices (unadjusted) in active markets for identified assets or liabilities.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).
Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The Company recognizes transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

VI Summary of Significant Accounting Items

(I) Cash and cash equivalents

	2025.12.31	2024.12.31
Cash, Checks, and Demand Deposits	$ 228,427	933,605
Time deposits	295,290	-
	$ 523,717	933,605

Please refer to Note 6(21) for the exchange rate risk and sensitivity analysis of financial

~28~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

assets and liabilities of the Group.

(II) Financial Assets and Liabilities at FVTPL

	2025.12.31	2024.12.31
Financial assets at FVTPL
Funds	$ 3,425	3,362
Futures	-	3,314
Total	$ 3,425	6,676
Financial Liabilities at FVTPL:
Futures	$ (32,126)	(8,983)

For disclosures on credit, currency, and interest rate risks in financial instruments, please refer to Note 6(21).
The Group engages in derivative financial instruments to hedge the risks arising from fluctuations in foreign currency-denominated net assets or net liabilities and the risks arising from fluctuations in international copper prices for raw materials used in production. The details of derivative instruments that are recognized as financial assets and liabilities at fair value through profit or loss and not subject to hedge accounting are as follows:

Futures Contract:

	Open Position
	Buyer/Seller	Volume	Transaction price	Margin	Fair value
2025.12.3	Seller	1,500 tons	USD11,500/Ton to USD12,410/Ton	$ 73,938	(32,126)
1
2024.12.3	Seller	100 tons	USD$9,694/Ton	$ 2,909	3,314
1
2024.12.3	Buyer	1,100 tons	USD8,876/Ton to USD9,102/Ton	$ 32,001	(8,983)
1

(1) Please refer to Note 6(21) for the net valuation gains or losses on derivative financial instruments for the years ended December 31, 2025 and 2024.

(2) As of December 31, 2025 and 2024, the Group did not pledge any of the above financial assets as collateral.

(III) Financial assets at FVTOCI

Equity Instruments Measured at Fair Value Through Other Comprehensive Income:

Domestic Unlisted Stocks

2025.12.31	2024.12.31
$ -	-

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

The Group designated the investments as equity securities at fair value through other comprehensive income because the Group intends to hold the investments for long-term strategic purposes. The related impairment losses have been fully recognized in the previous years.
As of December 31, 2025 and 2024, the Company did not pledge any of the above financial assets as collateral.

(IV) Notes Receivable and Accounts Receivable, Net

	2025.12.31	2024.12.31
Notes receivable	$ 119,374	132,676
Accounts receivable	1,026,624	1,206,426
Less: Allowance for bad debts	(28,793)	(56,057)
Total	$ 1,117,205	1,283,045

The Group applies the simplified approach to evaluate its expected credit losses (ECLs), i.e., the Group recognizes the impairment provision for lifetime ECLs for all receivables. The Group estimates lifetime ECLs based on the historical credit loss experience of each customer and incorporates forward-looking information, including macroeconomic and relevant industry information. Analysis of expected credit losses on note and accounts receivable was as follows:

	2025.12.31
	Carrying Amount of Notes and Accounts Receivable	Weighted Average Loss Rate	Allowance for existing expected credit losses
Not Past Due	$ 1,116,379	0%~0%	-
30 Days or Less Past Due	378	0%~0%	-
91-180 Days Past Due	448	0%~2%	-
More Than 1 Year Past Due	28,793	0%~100%	28,793
Total	$ 1,145,998		28,793
	2024.12.31
	Carrying Amount of Notes and Accounts Receivable	Weighted Average Loss Rate	Allowance for existing expected credit losses
Not Past Due	$ 1,281,457	0%~10%	26
30 Days or Less Past Due	1,614	0%~10%	-

~30~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

More Than 1 Year Past Due	56,031	0%~100%	56,031
Total	$ 1,339,102		56,057

The movements in the allowance for notes and accounts receivable were as follows:

	2025	2024
Beginning retained earnings	$ 56,057	54,332
Allowance recognized for the period	12,329	-
Write-offs during the period	(37,365)	-
Gains or losses on foreign currency translations	(2,228)	1,725
Ending Balance	$ 28,793	56,057

(V) Other financial assets - current

	2025.12.31	2024.12.31
Refundable deposits	$ 240,720	68,252
Restricted bank deposit	31,493	70,760
Others	22,204	11,999
	$ 294,417	151,011

As of December 31, 2025 and 2024, the Group did not have any financial assets that were past due but not impaired. Please refer to Note 8 for information on restricted bank deposits held by the Company as collateral for short-term borrowings and financing guarantees.

(VI) Inventories

	2025.12.31	2024.12.31
Raw materials	$ 334,208	226,760
Work in process	526,043	390,632
Finished goods	355,854	199,670
Commodities	146,543	201,555
	$ 1,362,648	1,018,617

The Group recognized inventory write-down (reversal of write-down) and obsolescence losses of NT$(11,605) thousand and NT$11,958 thousand for 2025 and 2024, respectively.

As of December 31, 2025 and 2024, no inventories of the Group were pledged as collateral.

(VII) Non-current assets held for sale

In January 2024, the Group resolved to sell the property, plant, and equipment of Evertop Hitek (Vietnam) and entered into a real estate sales contract with a non-related party. As the transaction is expected to be completed within one year, the Group reclassified the related property, plant, and equipment as non-current assets held for sale. The Group completed the

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

relevant disposal in December 2024, with disposal proceeds and gains on disposal amounting to NT$503,097 thousand and NT$468,592 thousand, respectively.

(VIII) Property, plant and equipment

The costs and accumulated depreciation of the property, plants, and equipment of the Group for the years ended December 31, 2021 and 2020 were as follows:

	Land	Buildings and structures	Machinery and equipment	Leased improvements and other equipment	Construction in progress	Total
Cost or Deemed Cost:
Balance at January 1,
2025	$ 548,294	191,481	276,878	173,917	19,678	1,210,248
Increase	903	10,530	22,748	25,012	34,997	94,190
Disposals and
Retirement	-	(390)	(5,279)	(6,663)	-	(12,332)
Reclassification	2,190	1,860	5,127	1,612	(10,956)	(167)
The Effects of
Changes in Foreign
Exchange Rates	-	-	-	224	-	224
Balance at December 31, 2025	$ 551,387	203,481	299,474	194,102	43,719	1,292,163
Balance at January 1,
2024	$ 548,294	186,831	262,221	155,114	13,907	1,166,367
Increase	-	4,650	10,902	11,901	17,395	44,848
Disposals and
Retirement	-	-	(1,108)	(1,358)	-	(2,466)
Reclassification	-	-	4,863	6,685	(11,624)	(76)
The Effects of
Changes in Foreign
Exchange Rates	-	-	-	1,575	-	1,575
Balance at December 31, 2024	$ 548,294	191,481	276,878	173,917	19,678	1,210,248
Accumulated
Depreciation and
Impairment Loss:
Balance at January 1,	$ -	111,614	216,343	105,779	-	433,736

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

2025
Depreciation for the
year	-	8,068	15,845	10,352	-	34,265
Disposals and
Retirement	-	(390)	(4,762)	(6,145)	-	(11,297)
The Effects of
Changes in Foreign
Exchange Rates	-	-	-	224	-	224
Balance at December
31, 2025	$ -	119,292	227,426	110,210	-	456,928
Balance at January 1,
2024	$ -	103,918	199,577	96,839	-	400,334
Depreciation for the
year	-	7,696	17,346	8,722	-	33,764
Disposals and
Retirement	-	-	(580)	(1,355)	-	(1,935)
The Effects of
Changes in Foreign
Exchange Rates	-	-	-	1,573	-	1,573
Balance at December
31, 2024	$ -	111,614	216,343	105,779	-	433,736
Book value:
December 31, 2025	$ 551,387	84,189	72,048	83,892	43,719	835,235
December 31, 2024	$ 548,294	79,867	60,535	68,138	19,678	776,512
January 1, 2024	$ 548,294	82,913	62,644	58,275	13,907	766,033

The land located at No. 77 in Nei Chu Zi Subsection and No. 280, 281, 289, 290, 469, 469--1, and 469--2 in Daxiang Section, Da Lun Section, Zhongli City, has a book value of NT$132,831 thousand. Since the original land is farmland, the Group temporarily registered the ownership under the Chairman or director of the Group. The Group signed an agreement with the registered owner stating that all rights and obligations of the land belong to the Group. The land is currently used by the Group for business purposes and is recognized as a land asset. The above-mentioned land was changed to industrial land use in December 2024, and the application to transfer the ownership to the Group is currently in progress.
Please refer to Note 8 for information on the property, plants, and equipment pledged as

~33~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

collateral for long-term and short-term loans as of December 31, 2025 and 2024.

(IX) Right-of-use Assets

The details of changes in the cost and depreciation of the land and other equipment leased by the Group are as follows:

	Land	Other equipment	Total
Cost:
Balance at January 1, 2025	$ 54,161	8,078	62,239
Effect on foreign currency exchange differences	120	-	120
Balance at December 31, 2025	$ 54,281	8,078	62,359
Balance at January 1, 2024	$ 53,670	8,078	61,748
Increase	12,592	-	12,592
Decrease	(13,192)	-	(13,192)
Effect on foreign currency exchange differences	1,091	-	1,091
Balance at December 31, 2024	$ 54,161	8,078	62,239
Accumulated Depreciation:
Balance at January 1, 2025	$ 39,613	4,264	43,877
Depreciation Expense	5,310	2,693	8,003
Effect on foreign currency exchange differences	137	-	137
Balance at December 31, 2025	$ 45,060	6,957	52,017
Balance at January 1, 2024	$ 35,660	1,571	37,231
Depreciation Expense	5,340	2,693	8,033
Decrease	(2,012)	-	(2,012)
Effect on foreign currency exchange differences	625	-	625
Balance at December 31, 2024	$ 39,613	4,264	43,877
Book value:
December 31, 2025	$ 9,221	1,121	10,342
December 31, 2024	$ 14,548	3,814	18,362
January 1, 2024	$ 18,010	6,507	24,517

(X) Investment property

~34~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

The details of the Group’s investment property are as follows:

	Long-term prepaid rent
Cost or Deemed Cost:
Balance at January 1, 2025	$ 193,456
The Effects of Changes in Foreign Exchange Rates	780
Balance at December 31, 2025	$ 194,236
Balance at January 1, 2024	$ 188,048
The Effects of Changes in Foreign Exchange Rates	5,408
Balance at December 31, 2024	$ 193,456
Amortization:
Balance at January 1, 2025	$ 181,810
Current Amortization	6,676
The Effects of Changes in Foreign Exchange Rates	979
Balance at December 31, 2025	$ 189,465
Balance at January 1, 2024	$ 152,410
Current Amortization	7,288
Impairment loss recognized	17,250
The Effects of Changes in Foreign Exchange Rates	4,862
Balance at December 31, 2024	$ 181,810
Carrying amount:
December 31, 2025	$ 4,771
December 31, 2024	$ 11,646
January 1, 2024	$ 35,638

(XI) Short-term borrowings

	2025.12.31	2024.12.31
Letter of Credit Financing	$ 1,116,572	1,124,938
Interest Rate Range at End of Period	4.80%~5.61%	5.63%~6.92%

Please refer to Note 8 for details of the related assets pledged as collateral for bank loans.

(XII) Lease liabilities

The carrying amounts of lease liabilities for the Group were as follows:

	2025.12.31	2024.12.31
Current	$ 5,412	6,906
Non-current	$ 718	6,131

Please refer to Note 6(21) for maturity analysis.

The amounts recognized in profit or loss were as follows:

~35~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

	2025	2024
Interest on Lease Liabilities	$ 186	274
Expenses Relating to Short-term Leases	$ 403	243

The amounts recognized in the statement of cash flows for the Company were as follows:

	2025	2024
Total cash outflow for leases	$ 7,496	7,142

(XIII) Employee benefits

1. Defined benefit plan

Reconciliation of defined benefit obligation at present value and plan asset at fair value is as follows:

	2025.12.31	2024.12.31
Present value of defined benefit obligation	$ (12,697)	(17,544)
Fair value of plan assets	20,130	18,126
Net defined benefit assets (liabilities)	$ 7,433	582

The Group makes defined benefit plan contributions to the pension fund account with the Bank of Taiwan that provides pension benefits for employees upon retirement. Plans (covered by the Labor Standards Act) entitle a retired employee to receive retirement benefits based on years of service and average monthly salary for the six months prior to retirement.

(1) Composition of plan assets

The Group allocates pension funds in accordance with the "Regulations for Revenue, Expenditures, Safeguards, and Utilization of the Labor Retirement Fund", and such funds are managed by the Bureau of Labor Funds, Ministry of Labor. With regard to the utilization of the funds, minimum earnings shall be no less than the earnings attainable from two-year time deposits with interest rates offered by local banks.

The Group's and the Company's Bank of Taiwan labor pension reserve account balance amounted NT$20,130 thousand as of the reporting date. For information on the utilization of the labor pension fund assets, including the asset allocation and yield of the fund, please refer to the website of the Bureau of Labor Funds, Ministry of Labor.

(2) Movements in present value of the defined benefit obligations

Changes in the present value of the Group's defined benefit obligations in 2025 and 2024 are as follows:

	2025	2024
Defined Benefit Obligation, January 1	$ 17,544	18,222

~36~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

Benefits Paid	(9,000)	(265)
Current Service Costs and Interest	546	617
Remeasurements of the net defined benefit liability (asset)	3,325	(408)
- Return on plan assets excluding interest income
- Actuarial (loss) gain arising from changes in financial assumptions	282	(622)
Defined Benefit Obligations, December 31	$ 12,697	17,544

(3) Movements in the fair value of plan assets

Changes in the fair value of the Group's defined benefit plan assets in 2025 and 2024 are as follows:

	2025	2024
Fair Value of Plan Assets, January 1	$ 18,126	16,406
Interest revenue	352	258
Remeasurements of the net defined benefit liability (asset)	1,202	1,460
- Return on plan assets excluding interest income
Contributions Made	450	267
Benefits Paid	-	(265)
Fair Value of Plan Assets, December 31	$ 20,130	18,126

(4) Expenses Recognized in Profit or Loss

The Group's pension expenses recognized in profit or loss for the years ended December 31, 2025 and 2024 were as follows:

	2025	2024
Current Service Cost	$ 207	331
Net Interest on the Net Defined Benefit Liability	(13)	28
	$ 194	359
Operating costs	$ 119	300
Selling expenses	50	39
Research and development expenses	25	20
	$ 194	359

~37~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

(5) Re-measurement of Net Defined Benefit Liability Recognized in Other Comprehensive Income

The Group’s re-measurement of the net defined benefit liability recognized in other comprehensive income for the years ended December 31, 2021 and 2020 were as follows:

	2025	2024
Accumulated Amount, January 1	$ (13,690)	(16,180)
Recognized During the Year	(2,405)	2,490
Accumulated Amount, December 31	$ (16,095)	(13,690)

(6) Actuarial assumptions

The principal actuarial assumptions that the Group used to determine the present value of the defined benefit obligation on the reporting date were as follows:

	2025.12.31	2024.12.31
Discount rate	1.750%	2.000%
Future Salary Increase Rate	1.250%	1.250%

The Group expects to contribute NT$266 thousand to the defined benefit plan within one year after the 2025 reporting date.

The weighted-average lifetime of the defined benefit plan is 12.87 years.

(7) Sensitivity analysis

If the actuarial assumptions had changed, the impact on the present value of the defined benefit obligation for the year ended December 31, 2025 and 2024 shall be as follows:

December 31, 2025	Influences of Defined Benefit Liabilities
	Amount Increased by 0.25%	Amount Decreased by 0.25%
Discount rate 1.750%	$ (282)	292
Salary Increasing Rate: 1.25%	286	(277)
December 31, 2024
Discount rate 2.000%	$ (398)	411
Salary Increasing Rate: 1.25%	403	(391)

The sensitivity analysis above is based on one assumption which changed while the other conditions remain unchanged. In practice, more than one assumption may change all at once. The method used in the sensitivity analysis is consistent with the calculation of net defined benefit liabilities in the balance sheets.

~38~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

The method and assumptions used in the preparation of sensitivity analysis is the same as in the prior year.

2. Defined contribution plans

The Group allocates 6% of each employee’s monthly wages to the labor pension personal account at the Bureau of Labor Insurance in accordance with the provisions of the Labor Pension Act. In addition, foreign subsidiaries make pension contributions in accordance with labor laws of their respective countries and recognize the amount of current contributions as pension expenses. Under this defined contribution plan, the Group allocates a fixed amount to the Bureau of Labor Insurance without additional legal or constructive obligation.

The pension costs under defined contribution plans amounted to NT$6,191 thousand and NT$6,050 thousand for the years ended December 31, 2025 and 2024, respectively; the Group has contributed to the Bureau of Labor Insurance.

(XIV) Income taxes

The details of income tax expenses of the Group for 2025 and 2024 are as follows:

	2025	2024
Current Tax Expenses	$ 113,426	144,817
Deferred Tax Expenses	2,195	16,379
Income tax expense	$ 115,621	161,196

In 2025 and 2024, the Group had no income tax expense directly recognized in equity.
The amount of income tax expenses recognized in other comprehensive income for the Group was as follows:

	2025	2024
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of the financial statements of foreign operations	$ -	3,178

The Group’s reconciliation of income tax expenses and profit before tax for the years ended December 31, 2025 and 2024 was as follows:

	2025	2024
Profit before tax	$ 409,423	548,622
Income Tax Using the Company’s Domestic Tax Rate	82,009	135,054
Effect of Foreign Tax Rate Change	911	1,242
Permanent differences	-	2,893

~39~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

Net Change in Unrecognized Deferred Tax Assets	26,489	13,806
Underestimation of prior period income tax and others	6,212	8,201
	$ 115,621	161,196

5. Deferred Tax (Assets) and Liabilities

(1) Unrecognized Deferred Tax Assets

The Group’s unrecognized deferred tax assets are as follows:

	2025.12.31	2024.12.31
Tax Losses	$ 1,604	1,302
Deductible temporary difference	140,346	131,672
	$ 141,950	132,974

In accordance with the Income Tax Act, taxation may be made on its net income after deduction of losses incurred in the preceding ten years as verified and determined by the local collection authority-in-charge. These items are not recognized as deferred tax assets because it is not probable that the Group will have enough taxable profits to utilize the temporary differences in the future. As of December 31, 2025, the Group's tax losses and the deductible periods were as follows:

Reporting Entity	Year of Loss	Deductible Amount	Effect on Tax amount
Yifu	2015 (approved amount)	$ 713	143 2025
Investment
„	2016 (approved amount)	713	143 2026
„	2017 (approved amount)	673	135 2027
„	2018 (approved amount)	563	113 2028
„	2019 (approved amount)	513	103 2029
„	2020 (approved amount)	518	104 2030
„	2021 (approved amount)	567	113 2031
„	2022 (approved amount)	614	123 2032
„	2023 (approved amount)	884	177 2033
„	2024 (declared amount)	1,044	209 2034
„	2025 (estimated amount)	1,205	241 2035
		$ 8,007	1,604

(2) Recognized deferred tax assets

Changes in the Group's deferred income tax assets in 2025 and 2024 are as follows:

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

	Loss on Valuation of Inventory	Share of the Subsidiaries Accounted for Using the Equity Method	Cumulative translation adjustment	Others	Total
Deferred tax assets:
Balance at January 1, 2025	$ (8,509)	(24,640)	(490)	(7,521)	(41,160)
Recognized in Profit or Loss	2,321	24,323	-	(25,983)	661
Balance at December 31, 2025	$ (6,188)	(317)	(490)	(33,504)	(40,499)
Balance at January 1, 2024	$ (14,281)	(43,567)	(3,668)	(1,308)	(62,824)
Recognized in Profit or Loss	5,772	18,927	-	(6,213)	18,486
Exchange differences on translation of the financial statements of foreign operations	-	-	3,178	-	3,178
Balance at December 31, 2024	$ (8,509)	(24,640)	(490)	(7,521)	(41,160)

(3) Recognized deferred tax liabilities

Changes in the Group's deferred income tax assets in 2025 and 2024 are as follows:

	Others
Deferred tax liabilities:
Balance at January 1, 2025	$ 1,953
Debited to Profit or Loss	1,534
Balance at December 31, 2025	$ 3,487
Balance at January 1, 2024	$ 4,060
Credited to Profit or Loss	(2,107)
Balance at December 31, 2024	$ 1,953

The filing of an income tax return on the profit-seeking enterprise income tax of the Company and Yifu Investment was approved by the Taxation Bureau up till 2023.

~41~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

(XV) Capital and other equity

Share capital

The Company had 194,149 thousand shares outstanding in both 2025 and 2024.

The Company's authorized capital was NT$3,000,000 thousand with a par value of NT$10 per share on December 31, 2025 and 2024, respectively. The aforesaid total authorized capital amount includes NT$100,000 thousand available for employee warrants. The actual paid-in capital is NT$1,941,485 thousand. All issued shares were paid up upon issuance.

Additional paid-in capital

According to the R.O.C. Company Act, capital surplus can only be used to offset a deficit, and only the realized capital surplus can be used to increase the common stock or be distributed as cash dividends. The aforementioned realized capital surplus includes capital surplus resulting from premium on issuance of capital stocks and earnings from donated assets received. According to the Regulations Governing the Offering and Issuance of Securities by Securities Issuers, capital increases by transferring capital surplus in excess of par value should not exceed 10% of the total common stocks outstanding.

The accumulated cash dividends of NT$10,869 thousand from the Company's shares held by its subsidiaries in prior years were recognized as treasury stock, and the above cash dividends received by the subsidiaries were recorded as capital surplus - treasury stocks.

Retained earnings

According to the Articles of Incorporation, the current year's earnings, if any, shall first be used to pay all taxes and offset prior years' operating losses and then 10% of the remaining amount shall be set aside as legal reserve. The appropriation for legal reserve is discontinued when the balance of the legal reserve equals the total authorized capital. Special reserve may be appropriated for operations or to meet regulations.

The Company's dividend policy is to pay dividends from surplus considering factors such as the Company's current and future investment environment, cash requirements, domestic and overseas competitive conditions and capital budget requirements, and taking into account the shareholders' interest, maintenance of a balanced dividend, and the Company's long term financial plan. The Board of Directors is responsible for preparing the dividend distribution plan in accordance with the law and submitting it to the shareholders' meeting for resolution each year.

(1) Statutory reserves

When a company incurs no loss, it may, pursuant to a resolution by a shareholders'

~42~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

meeting, distribute its legal reserve by issuing new shares or by distributing cash, and only the portion of the legal reserve which exceeds 25% of capital may be distributed.

(2) Special reserves

A special reserve is set aside from the current year’s net income after tax and the prior year’s undistributed earnings at an amount equal to the debit balance of contra accounts in shareholders’ equity. When the debit balance of any of these contra accounts in shareholders’ equity is reversed, the related special reserve can be reversed. The subsequent reversals of contra accounts in shareholder’s equity shall qualify for additional distributions.

(3) Earnings distribution

At the annual general meetings held on June 16, 2025 and June 24, 2024, the Company approved the earnings distribution proposals for 2024 and 2023, respectively. The amounts of dividends distributed to owners are as follows.

	2024		2023
	Stock dividend rate (per share)	Amount	Stock dividend rate (per share)	Amount
Dividends distributed to common shareholders:
Cash dividends	$ 1.80	350,166	0.37	71,835

On March 10, 2026, the Board of Directors of the Company proposed the earnings distribution for 2025. The amounts of dividends to be distributed to owners are as follows:

	2025
	Stock dividend rate (per share)	Amount
Dividends distributed to common shareholders:
Cash dividends	$ 1.36	$ 263,731

Treasury stocks

The balance of the Company's treasury stocks was NT$85,077 thousand as of December 31, 2025 and 2024. These 4,655 thousand shares of the Company's treasury stock were acquired by the Company's subsidiary, Yifu Investment, before the amendment of the

~43~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

Company Act in November 2001. The shares remain outstanding as of December 31, 2025. The market price per share was NT$28.65 and NT$19.65 as of December 31, 2025 and 2024, respectively. As of December 31, 2025 and 2024, the market value of the relevant shares exceeded their acquisition cost.

(XVI) Earnings per Share

The calculation of basic and diluted earnings per share of the Group is as follows:

Basic earnings per share

(1) Profit Attributable to Ordinary Shareholders of the Company

	2025	2024
Profit Attributable to Ordinary Shareholders of the Company	$ 293,802	387,426

(2) Weighted Average Number of Ordinary Shares Outstanding

	2025	2024
Ordinary Shares Outstanding at the Beginning of the Period (equivalent to the end of the period)	194,149	194,149
Effect of treasury stock (thousand shares)	(4,655)	(4,655)
Weighted average number of outstanding common stock (thousand shares)	189,494	189,494
Basic earnings per share (NT$)	$ 1.55	2.04

Diluted earnings per share

The 2025 and 2024 diluted earnings per share were calculated based on the net profit attributable to the Company's common stock shareholders and the weighted average basis of the common stock outstanding after adjusting for the effect of dilution of all potential common shares, and are calculated as follows:

	2025	2024
Net income attributable to common stock shareholders of the Company (basic)	$ 293,802	387,426
Weighted average outstanding common stock (basic)	189,494	189,494
Effect of employee stock remuneration (thousand shares)	584	715
Weighted average number of common shares outstanding (diluted) (thousand shares)	190,078	190,209
Diluted Earnings Per Share (NT$)	$ 1.55	2.04

(XVII) Revenue from contracts with customers

Disaggregation of revenue

~44~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

	2025	2024
Primary Geographical Markets
Taiwan	$ 5,207,641	4,534,734
Vietnam	-	58,365
	$ 5,207,641	4,593,099
Major Product/Service Lines
Power Cables	$ 4,595,884	3,929,723
Telecommunication Cables	278,418	202,036
Fiber Cables	163,288	185,038
Rubber Cables	26,342	71,237
Others	143,709	205,065
	$ 5,207,641	4,593,099

2. Contract balance

	2025.12.31	2024.12.31	2024.1.1
contract liability	$ 102,332	88,951	85,817

(1) The contract liabilities include amounts received in advance from customers based on the contracts and will be recognized as revenue when the goods are transferred to the customers. The beginning balance of contract liability recognized as revenue for the years ended December 31, 2025 and 2024 were NT$45,408 thousand and NT$83,633 thousand, respectively. In addition, the original expected duration of the contract liabilities as of December 31, 2025 and 2024 was less than one year, therefore, the remaining duration of the outstanding performance obligations was not disclosed.

(2) For details on notes/accounts receivable and allowance for impairment, please refer to Note 6(4).

(XVIII) Remuneration to employees and directors

At the shareholders' meeting held on June 16, 2025, the Company resolved to amend its Articles of Incorporation. Under the amended Articles, if there is profit in the year, the Company shall set aside 3% of the profit as employee's remuneration, which shall be distributed in shares or cash as resolved by the board of directors; the Company may, by the resolution of the board of directors, set aside no more than 2% of the above-mentioned profit as remuneration to directors. Of the aforementioned employee compensation, no less than 30% shall be allocated for distribution to basic-level employees. The proposal for the distribution of employees' and directors' remuneration shall be submitted to the shareholders' meeting for reporting. However, if the Company still has accumulated losses, the Company shall reserve

~45~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

an amount to make up for it, and then provide employees' remuneration and directors' remuneration in accordance with the aforementioned percentages.

Under the Articles prior to amendment, where the Company has a profit in a fiscal year, it shall allocate no less than 3% of the profit as employees' remuneration and no more than 2% of the profit as the remuneration of directors and supervisors. However, where the Company still has accumulated losses, the amount shall be reserved for making up the accumulated losses first. And they shall be recognized as operating costs and operating expenses for the period.

The 2025 and 2024 remuneration to employees was NT$12,929 thousand (including remuneration for non-managerial employees) and NT$15,175, and the remuneration to directors was NT$8,619 thousand and NT$10,117 thousand, respectively, which was deducted from the Company's net profit before tax for the period before deducting the remuneration to employees and directors, and after deducting the accumulated losses, and then multiplying the remaining balance by the percentage of compensation to employees and directors stipulated in the Company's Articles of Incorporation, and report it as operating costs or operating expenses for the period. If there is any discrepancy between the actual distribution amount and the estimated number, the difference is treated according to the change in accounting estimates and recognized as profit or loss in the next year. If the board of directors decides to pay remuneration to employees in shares, the number of shares as remuneration shall be calculated based on the closing price on the day before the board's resolution (after taking into account the effect of ex-rights and ex-dividends).

The amounts of employee and directors' remuneration accrued and actually distributed by the Company for 2024 showed no differences. The relevant information can be obtained from the Market Observation Post System.

(XIX) Other income

The Group's other income for 2025 and 2024 is as follows:

	2025	2024
Rental income	$ 18,175	18,339
Others	19,832	3,884
	$ 38,007	22,223

(XX) Other gains or losses

Other gains and losses of the Group in 2025 and 2024 are as follows:

	2025	2024
Foreign exchange (loss) gain	$ 38,841	(38,773)

~46~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

Gain on disposal of property, plant and equipment	498	468,061
Net Valuation Gain/Loss on Financial Assets/Liabilities at FVTPL	(82,355)	(1,693)
Loss on disposal of subsidiaries	(99,392)	-
Impairment loss	-	(17,250)
Others	(393)	(748)
	$ (142,801)	409,597

(XXI) Financial instruments

Credit risk

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Group's receivables from customers, derivatives, and investment in securities.

(1) Accounts receivables and other receivables

The Group has established a credit policy, and according to the policy, the Group must analyze its individual credit rating for each new customer before giving the standard payment and delivery terms. The review of the Group includes an external review, and, in some cases, a note from the bank. Credit limit is offered to each customer and is reviewed regularly. Customers who do not comply with the Group's benchmark credit rating are only allowed to make the transactions with the Group on an advance receipt basis.

(2) Investment

The exposure to credit risk related to the bank deposits, fixed income investments, and other financial instruments is measured and monitored by the Group's finance department. The Group only deals with banks and other external parties with good credit ratings and with financial institutions which are graded above investment grade. Management does not expect any counterparty to fail to meet its obligation hence there is no significant credit risk arising from these counterparties.

(3) Credit risk exposure

The carrying amount of financial assets represents the Company's maximum amount exposed to credit risk. Such maximum credit exposure on December 31, 2025 and 2024, amounted to NT$1,981,019 thousand and NT$2,374,337 thousand, respectively.

(4) Concentration of credit risk

The Group's credit risk is primarily affected by the credit characteristics of each debtor. The types of businesses in which customers operate also have an impact on credit

~47~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

risk. As of December 31, 2025 and 2024, 66% and 80% of the Group's total notes and accounts receivable came from the top ten sales customers, respectively.

(5) Please refer to Note 6(4) for information on past due accounts receivable and impairment loss as of the reporting date.

Liquidity risk

	Carrying amount:	Contractual cash flow	Less than 1 year	1~5 years	Over 5 years
December 31, 2025
Non-derivative financial liabilities
Short-term borrowings	$ 1,116,572	1,145,637	1,145,637	-	-
Note payable and accounts payable	512,526	512,526	512,526	-	-
Lease Liabilities (including non-current)	6,130	6,195	5,475	720	-
Other Financial Liabilities	98,702	98,702	98,702	-	-
Derivative financial instruments
Outflow	32,126	32,126	32,126	-	-
	$ 1,766,056	1,795,186	1,794,466	720	-
December 31, 2024
Non-derivative financial liabilities
Long-term and Short-term Borrowings	$ 1,124,938	1,160,233	1,160,233	-	-
Note payable and accounts payable	573,330	573,330	573,330	-	-
Lease Liabilities (including non-current)	13,037	13,287	7,092	6,195	-
Other Financial Liabilities	216,882	216,882	216,882	-	-
Derivative financial instruments
Inflow	(3,314)	(3,314)	(3,314)	-	-
Outflow	8,983	8,983	8,983	-	-

~48~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

$ 1,933,856 1,969,401 1,963,206 6,195 -

The Group does not expect that the cash flows included in the maturity analysis could occur significantly earlier or at a significantly different amount.

The above information on fund investments and futures represents the carrying amounts of unsettled transactions as of each reporting date. For details on positions, notional principal amounts, maturities, and related information, please refer to Note 6(2).

3. Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates, and equity instrument prices. This will affect the Group’s income or the value of its holdings of financial instruments. The purpose of market risk management is to manage market risk to a tolerable level and to optimize investment returns.

(1) Foreign currency risk

The Group’s significant exposure of financial assets and liabilities to foreign currency risk was as follows:

	2025.12.31			2024.12.31
	Foreign currency	Exchange rate	NTD	Foreign currency	Exchange rate	NTD
Financial asset
Monetary items
USD	$ 18,178	31.43	571,335	4,314	32.79	141,456
EUR	715	36.887	26,385	1	34.138	44
Financial liability
Monetary items
USD	36,911	31.43	1,160,113	34,489	32.79	1,130,894

The Group’s exposure to foreign currency risk arises from the translation of the foreign currency exchange gains and losses on cash and cash equivalents, accounts receivable and other receivables, refundable deposits, restricted assets, loans, and accounts payable that are denominated in foreign currencies. Assuming that the foreign currency exchange rate listed above decreased or increased by 1% on December 31, 2025 and 2024, and all other factors remain unchanged, the profit before tax for the year would have increased or decreased by NT$5,624 thousand and NT$9,894 thousand, respectively. The same basis was used for the analysis in both periods.

Since the Group has a wide variety of functional currencies, the information on exchange gains and losses of monetary items is disclosed in a summarized manner. The foreign currency exchange gains and losses (including realized and unrealized) for 2024

~49~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

and 2023 amounted to NT$38,841 thousand and $(38,773) thousand, respectively.

4. Interest rate risk

The interest rates of the Group's interest-bearing financial instruments as of the reporting date are summarized as follows:

	Carrying amount:
	2025.12.31	2024.12.31
Fixed-rate Instrument:
Financial asset	$ 295,290	45,023
Variable-rate Instrument:
Financial asset	$ 259,316	958,734
Financial liability	(1,116,572)	(1,124,938)
	$ (857,256)	(166,204)

Based on the sensitivity analysis of interest rate risk on non-derivative instruments on the reporting date, if the interest rate increased or decreased by 0.25% with all other variable factors remaining constant, the Group's net income would have decreased or increased by NT$2,143 thousand and NT$416 thousand for the years ended December 31, 2025 and 2024, respectively, mainly from the interest rate risk exposure of bank deposits and loans with variable interest rates.

In addition, the Group's financial liabilities for fixed-rate instruments are measured at amortized cost. Changes in market interest rates on the reporting date have no effect on profit or loss; therefore, a sensitivity analysis of changes in fair value is not disclosed.

5. Information on fair value

(1) Categories and fair value of financial instruments

The Group's financial assets and liabilities, including the information on fair value hierarchy, were as follows; however, except as described in the following paragraphs, for financial instruments not measured at fair value whose carrying amount is reasonably close to the fair value, and for lease liabilities, disclosure of fair value information is not required:

	2025.12.31
	Carrying amount:	Fair value
		Level 1	Level 2	Level 3	Total
Financial assets at FVTPL	$ 3,425	-	-	3,425	3,425
Financial assets measured at amortized cost
Cash and cash equivalents	$ 523,717

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

Notes Receivable and Accounts Receivable, Net	1,117,205
Other Financial Assets	294,417
Refundable Deposits (non-current)	42,255
Subtotal	$ 1,977,594
Financial liabilities at FVTPL	$ 32,126	-	32,126	-	32,126
		2025.12.31
		Fair value
	Carrying amount:	Level 1	Level 2	Level 3	Total
Financial Liabilities
Measured at Amortized Cost
Bank loans	$ 1,116,572
Note payable and accounts payable	512,526
Lease Liabilities (including non-current)	6,130
Other Financial Liabilities	98,702
Subtotal	$ 1,733,930
		2024.12.31
		Fair value
	Carrying amount:	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL	$ 6,676	-	3314	3362	6676
Financial assets measured at amortized cost
Cash and cash equivalents	$ 933,605
Notes Receivable and Accounts Receivable, Net	1,283,045
Other Financial Assets	151,011
Refundable Deposits (non-current)	10,292
Subtotal	$ 2,377,953
Financial liabilities at FVTPL	$ 8,983	-	8,983	-	8,983
Financial Liabilities

~51~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

Measured at Amortized Cost
Bank loans	$ 1,124,938
Note payable and accounts payable	573,330
Lease liabilities	13,037
Other Financial Liabilities	216,882
Subtotal	$ 1,928,187

(2) Valuation Techniques for Financial Instruments Measured at Fair Value

A. Non-derivative financial instruments

The fair value of financial instruments traded in an active market is based on the quoted market price.

If the quoted price of financial instruments can be obtained in time and often from exchanges, broker, underwriters, industry unions, pricing institutes, or authorities and such price can reflect those actual trading and frequency happen in the market, it is considered a financial instrument. If the financial instrument does not accord with the definition aforementioned, then it is considered to be without a quoted price in the active market. In general, a market with low trading volume or high bid-ask spreads is an indication of a non-active market.

The financial instruments held by the Group are classified according to the valuation techniques used to measure their fair value as follows:

The fair value of financial instruments traded in an active market is based on the quoted market price.
Measurement of fair value of financial instruments without an active market are based on the valuation technique or the quoted price from a competitor. Fair value, measured by using the valuation technique that can be extrapolated from either similar financial instruments or the discounted cash flow method or the market transaction prices of similar companies or other valuation techniques, including models, is calculated based on available market data on the reporting date.

B. Derivative financial instruments

Measurement of the fair value of derivative instruments is based on the valuation techniques generally accepted by market participants such as the discounted cash flow or option pricing models. Fair value of forward currency is usually determined by the forward currency exchange rate.

(3) Reconciliation of Level 3 Fair Values

~52~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

For the Group's financial assets and financial liabilities measured at fair value through profit or loss as of January 1 to December 31, 2025 and 2024 that are classified as Level 3, the changes are as follows:

	2025	2024
Beginning retained earnings	$ 3,362	3,191
Defined benefit costs recognized in profit or loss	45	63
Purchase/Disposal/Settlement	18	108
Ending Balance	$ 3,425	3,362

(4) The fair value measurement of the Group's financial instruments classified as Level 3 is based on third-party pricing information. The Company does not plan to disclose quantitative information and sensitivity analysis for significant unobservable inputs because the unobservable inputs to determine fair value are not determined by the Group.

(XXII) Financial risk management

Structure of risk management

The Group’s risk management policies are established to identify and analyze the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s activities. The Group, through training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Board of Directors oversees how management monitors compliance with the Group’s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Group. The Board of Directors is assisted in its oversight role by the internal auditors. The internal auditors undertake both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the Board of Directors.

The Group has exposures to the following risks from its financial instruments:

(1) Credit risk
(2) Liquidity risk
(3) Market risk

The following likewise discusses the Group’s objectives, policies, and processes for measuring and managing the above mentioned risks. For more disclosures about the quantitative effects of these risk exposures, please refer to Note 6(21).

(XXIII) Capital management

~53~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

The Group's capital management policy is to ensure that it has the necessary financial resources to support its working capital, capital expenditures, and to repay its debts for the next 12 months. The Group also considers debt ratios to keep the trust and confidence among investors, creditors, and the market. The debt ratio was 48% and 50% as of December 31, 2025 and 2024, respectively. As of December 31, 2025, there was no change in the Group's capital management strategy.

(XXIV) Non-cash investing and financing activities

The Group's non-cash investment and financing activities in 2025 and 2024 are as follows:

For the right-of-use assets acquired by lease, please refer to Note 6(9).
Reconciliation of liabilities arising from financing activities was as follows:

	2025.1.1	Cash flows	Others	2025.12.31
Short-term borrowings	$ 1,124,938	(8,366)	-	1,116,572
Deposits received	6,550	(281)	-	6,269
Lease liabilities	13,037	(6,907)	-	6,130
Total Liabilities Arising From Financing Activities	$ 1,144,525	(15,554)	-	1,128,971
	2024.1.1	Cash flows	Others	2024.12.31
Short-term borrowings	$ 474,234	650,704	-	1,124,938
Long-term borrowings	130,000	(130,000)	-	-
Deposits received	6,669	(119)	-	6,550
Lease liabilities	7,070	(6,625)	12,592	13,037
Total Liabilities Arising From Financing Activities	$ 617,973	513,960	12,592	1,144,525

VII Related Party Transaction

(I) Parent Company and Ultimate Controlling Party

The Company is the ultimate controller of the Company and its subsidiaries.

(II) Related Party Name and Relationship

The followings are entities that have had transactions with related parties during the periods covered in the consolidated financial statements:

Related Party Name	Related Party Category
CHANG, MING-CHUAN, WANG, YIN-HO and CHANG, CHENG-HAO	The Management of the Company
CHANG,AI-HUI	President’s relative within the first degree of kinship

~54~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

CHANG,AI-FEN

(III) Key Management Personnel Transactions

Loan Guarantee Provided by Related Parties

As of December 31, 2025 and 2024, the balances of the Group's long-term and short-term loans from financial institutions totaled NT$1,116,572 thousand and NT$1,124,938, thousand, respectively, and were jointly endorsed and guaranteed by CHANG, MING-CHUAN; WANG, YIN-HO; and CHANG, AI-HUI.

Key Management Personnel Transactions

Key management personnel compensation comprised:

	2025	2024
Short-term employee benefits	$ 66,557	159,497
Post-employment benefits	9,000	-
	$ 75,557	159,497

The above amounts do not include the cost of rental cars and business cars. As of December 31, 2025 and 2024, there were 12 and 11 business cars allocated, respectively; the total original cost and right-of-use assets were NT$22,423 thousand and NT$23,797 thousand.

(IV) Others

Some of the Group's fixed assets are held in the name of the Chairman or directors of the Company, please refer to Note 6(8) for details.

VIII Pledged Assets

The carrying values of pledged assets were as follows:

Pledged Assets	Object	2025.12.31	2024.12.31
Land	Long-term and Short-term Borrowings	$ 409,599	406,506
	Long-term and Short-term Borrowings
	Short-term Loans and Performance Bonds	31,493	70,760
Buildings
Restricted bank deposits- Current (booked as other financial assets)
		$ 515,645	547,282

IX Significant Contingent Liabilities and Unrecognized Commitments

(I) The amount of letters of credit issued but not used for the raw materials and equipment procurements was as follows:

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

	Currency	2025.12.31	2024.12.31
Raw Materials Procurement	NTD	$ 178,769	71,069
Purchase of machinery and equipment	NTD	$ 26,337	-

(II) The amount estimated, based on the market price at the end of the period, that the Group commits suppliers to purchase major raw materials in the future as follows:

	Currency	2025.12.31	2024.12.31
Raw Materials Procurement	NTD	$ 2,796,888	2,175,431

(III) The amount of guarantee notes issued by the Group for performance guarantee on purchase of materials, bank facilities, commercial promissory notes, and derivative financial instrument trading limits were as follows:

	Currency	2025.12.31	2024.12.31
Notes Issued for Guarantee	NTD	$ 3,069,459	2,469,565

(IV) The amount of performance guarantee notes issued by the Group to customers for the purpose of guaranteeing sales contracts was as follows:

	Currency	2025.12.31	2024.12.31
Performance Guarantee	NTD	$ 301,722	274,724

(V) The amount of guarantee notes issued by the Group for post-release duty payment of import tariffs was as follows:

Guarantee for the Customs Duties	Currency	2025.12.31	2024.12.31
	NTD	$ 10,000	10,000

(VI) The Group's unrecognized contractual commitments for the acquisition of property, plant and equipment are as follows:

Acquisition of property, plant and equipment	Currency	2025.12.31	2024.12.31
	NTD	$ 5,448	1,546

(VII) In February 2015, the Group entered into a demolition and compensation agreement with the Chengnan Street Office of Wuzhong District, Suzhou for non-residential type housing. The scope of compensation imposed by the government includes prepaid long-term rental rights (i.e., land use rights). In accordance with the Interim Regulations of the People's Republic of China on Value-added Taxes (hereinafter referred to as the Interim Regulations on Land Value-added Taxes), real estate that has been requisitioned for national construction purposes in accordance with the law may apply for exemption from the value-added tax on land upon filing relevant documents. As of the effective date of this report, the Group has not yet obtained the approval

~56~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

letter from the local tax bureau for the exemption of the LAT. However, the Group assessed that it meets the tax exemption requirements and therefore did not accrue land value added tax in accordance with the Interim Regulations on Land Value-added Taxes.

(VIII) The Group entered into a real estate sale agreement with a non-related party. For details regarding the performance of the agreement and related explanations, please refer to Note 6(7).

(IX) For operational needs, the Group applied to purchase land from the National Property Administration, Ministry of Finance and prepaid a deposit. As of December 31, 2025, a deposit of NT$31,967 thousand had been paid and was recorded under other non-current assets. The land disposal procedures are subject to approval by the Legislative Yuan; however, as of the date of this report, the approval letter for the aforementioned transaction has not yet been obtained.

X Losses Due to Major Disasters: None.

XI Significant Events: None.

XII Others

The information on employee benefits, depreciation, depletion, and amortization expenses, by function, is summarized as follows:

| By function
By nature | 2025 | | | 2024 | | |
| --- | --- | --- | --- | --- | --- | --- |
| | Classified as operating costs | Classified as operating expenses | Total | Classified as operating costs | Classified as operating expenses | Total |
| Employee benefit expense | | | | | | |
| Salary expense | 135,529 | 82,443 | 217,972 | 130,006 | 189,453 | 319,459 |
| Labor and health insurance expense | 13,128 | 3,598 | 16,726 | 12,517 | 3,091 | 15,608 |
| Pension | 4,811 | 1,574 | 6,385 | 4,911 | 1,498 | 6,409 |
| Remuneration of Directors | - | 339 | 339 | - | 318 | 318 |
| Other Employee Benefit Expense | 7,543 | 1,971 | 9,514 | 7,136 | 1,776 | 8,912 |
| Depreciation expense | 35,050 | 13,894 | 48,944 | 34,377 | 14,708 | 49,085 |
| Amortization cost | 38 | 4 | 42 | 146 | 8 | 154 |

XIII Additional Disclosures

(I) Information on Significant Transactions

The following is the information on significant transactions for 2025 required by the "Regulations Governing the Preparation of Financial Reports by Securities Issuers" for the Group:

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

Financing provided to others:

No.	Lender	Borrower	Financial Statement Account	Related Party	Maximum Balance for the Period	Ending Balance (Note 3)	Amount actually drawn	Interest Rate	Nature of Loan	Business Transaction Amounts	Reason for Short-term Funding	Loss Provisions Made	Collateral		Single Borrower Lending Limit (Note 1)	Aggregate Lending Amount
													Title	Value
4	The Company	Evertop Hitek (Vietnam)	Other Receivables to Related Parties	Yes	65,660	-	-	5%	Arises out of the necessity for liquidity	-	Operating capital	-	-	-	1,941,485	887,140 (Note 2)
4	The Company	Yifu	Other Receivables to Related Parties	Yes	10,000	10,000	-	-	#	-	Operating capital	-	-	-	1,941,485	887,140 (Note 2)
1	Asia Victory Hong Kong	The Company	Other Receivables to Related Parties	Yes	99,600	94,290	-	-	#	-	Operating capital	-	-	-	306,989	306,989 (Note 1)
2	Taiko Industrial Hong Kong	The Company	Other Receivables to Related Parties	Yes	302,120	286,013	244,525	0.1%	#	-	Operating capital	-	-	-	309,080	309,080 (Note 1)
3	Evertop Hitek (Vietnam)	The Company	Other Receivables to Related Parties	Yes	328,300	-	-	0.1%	#	-	Operating capital	-	-	-	292,191	292,191 (Note 1)

Note 1: Lending to any single business shall not exceed the borrower's paid-in capital.
Note 2: External party lending is capped at 40% of net worth, as shown in the latest financial statements.
Note 3: The closing balance represents the Board-approved limit.
Note 4: The above transactions have been fully eliminated when preparing the consolidated financial statements.

Endorsements/guarantees provided: None.
Significant securities held as of the balance sheet date (excluding investment subsidiaries, associates, and joint ventures):

Holding company name	Marketable securities types and name	Relationship with the issuers	Financial statement account	End of period				Maximum Shareholding During the Period		Remarks
				Number of shares (thousand shares)	Carrying amount:	Shareholding Ratio	Market price	Number of shares	Ratio
The Company	Taiwan Submarine Cable Co., Ltd.	None	Financial assets at fair value through other comprehensive income-non-current	-	-	-	-	-	-
Yifu Investment	The Company	Parent Company with 99.95% Shareholding	#	4,655	133,351	2.40%	133,351	4,655	2.40%	Note
Evertop (Dong Guan)	Great Wall Equity Investment Fund	None	Financial assets at FVTPL Current	-	3,424	-	3,424	-	-
Evertop (Dong Guan)	Ceb Principal Monetary Fund	None	#	-	1	-	1

Note: Please refer to Note 6(15) for the treatment as treasury stock.

Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid-in capital or more: None.
Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more:

Company with receivables recognized	Related party	Relationship	Ending Balance of Receivables From Related Parties	Turnover Rate (Note 1)	Overdue		Amounts Received in Subsequent Period	Loss Provisions Made
					Amount	Actions Taken
Taiko Industrial Hong Kong	The Company	100% owned Subsidiary of the Company	Other receivables 246,823	-	-	-	-	-

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

Note 1: Not applicable because it is the lending of funds.
Note 2: The above transactions have been fully eliminated when preparing the consolidated financial statements.

Significant transactions and business relationships between the parent company and its subsidiaries:

Unit: NT$ thousands

No. (Note 1)	Name	Transaction party	Relationship with the counterparty (Note 2)	Transactions in 2025
				Item	Amount	Transaction condition	Percentage of the consolidated net revenue or total assets
0	The Company	Taiko Industrial Hong Kong	1	Other Payables to Related Parties	246,823	Lending of Funds Plus Interest	5.8%

Note 1. The numbering is as follows:
1. "0" represents the parent company.
2. Subsidiaries are sequentially numbered from 1 by company.

Note 2. The types of transactions between the parent company and subsidiaries are as follows:
1. Parent to subsidiary.
2. Subsidiary to parent.
3. Subsidiary to subsidiary.

(II) Information on investees:

The following is the information on investees for the year ended December 31, 2025 (excluding information on investees in Mainland China):

Name of investment company	Name of investee	Location	Main business	Initial investment amount		Shareholding at the end of the period			Net income (loss) of the investee	Share of Profits/ Losses of Investee	Maximum Shareholding During the Period		Remarks
				End of the period	End of last year	Number of shares	Ratio	Carrying amount			Number of shares	Ratio
The Company	Evertop (British Virgin Islands) Co., Ltd.	British Virgin Islands	Investment	612,689	612,689	19,173	100.00%	150,701	(23,541)	(23,541)	19,173	100.00%	Subsidiary
The Company	Evertop (Hrick Vietnam)	Vietnam	Processing, manufacturing, and trading of enameled wires, wires and cables	292,191 (Note 2)	569,797	8,476	100.00%	-	16,218	16,218	17,776	100.00%	#
The Company	Yifa	Taiwan	Investment	86,440	86,440	8,644	99.95%	1,616	7,186	(1,204)	8,644	99.95%	#
Evertop (British Virgin Islands) Co., Ltd.	Asia Victory Hong Kong	Hong Kong	#	In thousand HKD 76,025	In thousand HKD 76,025	76,025	100.00%	(167,037)	(12,357)	(12,357)	76,025	100.00%	Second-tier subsidiary
Evertop (British Virgin Islands) Co., Ltd.	Taiko Industrial Hong Kong	#	#	In thousand HKD 76,543	In thousand HKD 76,543	76,543	100.00%	267,770	(11,183)	(11,183)	76,543	100.00%	#

Note 1: The long-term equity investments listed above have been written-off in the preparation of the consolidated financial statements.
Note 2: During the current period, a capital reduction was carried out with a return of capital, and liquidation is planned.

(III) Information on investment in China:

The names of investees in Mainland China, the main businesses and products, and other information:

Name of investee in China	Main business	Paid-in capital	Investment method	Accumulated amount of remittance From Taiwan to Mainland China	Investment Flows		Accumulated amount of Remittance From Taiwan to Mainland China	Net Income (losses) of the Investee	Ownership percentage of direct or indirect investment	Investment gains and losses recognized in the current period (Note 2)	Carrying amount of investments at the end of the period (Note 2)	Accumulated amount of investment income remitted back to Taiwan	Maximum Shareholding During the Period
					Outward remittance	Repatriation							Number of shares	Ratio
Evertop (Dong Guan)	Processing, manufacturing and trading of wires and cables	In thousand HKD 49,200	(Note 1)	141,545	-	-	141,545	(7,224)	100%	(7,224)	8,411	-	-	100%

~59~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

Evertop Suzhou	Manufacturing and trading of optoelectronic supplies, computer connectors, and related products.	In thousand HKD 15,627	(Note 1)	312,668	-	-	312,668	(11,005)	100%	(11,005)	9,968	-	-	100%

Note 1: Indirect investment in Mainland China through a Hong Kong subsidiary established by the company in third place.
Note 2: The calculation is based on the investee's financial statements audited by the CPA from the parent company.
Note 3: The long-term equity investments listed above have been written-off in the preparation of the consolidated financial statements.

2. Ceiling on investments in Mainland China:

Cumulative amount of investment remitted from Taiwan to Mainland China as of the end of the period (Note 3)	Investment amount approved by Investment Commission, MOEA	Limitation on investee regulated under Investment Commission, MOEA
517,076	517,076	1,330,711

Note 3: The cumulative investment amount was NT$141,545 thousand, NT$312,668 thousand, and NT$62,863 thousand, respectively, for Evertop Dongguan, Evertop Suzhou and Yihong Dongguan, respectively. The Company had accumulated losses after the cancellation, so the relevant investment monies were not repatriated. However, Yihong Dongguan was de-registered in the first quarter of 2014 and the company had accumulated losses, so the relevant investment funds could not be repatriated.

3. Significant transactions with investees in Mainland China:

For the elimination and explanation of significant direct or indirect transactions between the Group and its investees in Mainland China in 2025, please refer to "Information on Significant Transactions".

XIV Segment Information

(I) General information

The Group is mainly engaged in manufacturing various types of electric wires and cables. The Group's chief operating decision maker evaluates performance based on overall operating results. Therefore, the Group is a single operating segment and the operating segment information for the years ended December 31, 2025 and 2024 is consistent with the consolidated financial statements.

(II) Overall corporate information

1. Information about the products

Information about the Group’s revenue from external customers is as follows:

Product Category	2025	2024
Power Cables	$ 4,595,884	3,929,723
Telecommunication Cables	278,418	202,036
Fiber Cables	163,288	185,038
Rubber Cables	26,342	71,237
Others	143,709	205,065

~60~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

$	5,207,641	4,593,099

Information by regions

In presenting information on the basis of geography, segment revenue is based on the geographical location of customers. In addition, the geographical location of non-current assets is in Asia.

Region	2025	2024
Taiwan	$ 5,207,641	4,534,734
Vietnam	-	58,365
	$ 5,207,641	4,593,099

Information on major customers

The Group's revenues from a single customer that exceeds 10% of the net operating revenues on the consolidated statements of comprehensive income in 2025 and 2024 were as follows:

	2025	2024
BAA001	$ 1,599,527	1,418,460
AAE037	317,542	602,886
	$ 1,917,069	2,021,346

AI assistant

EVERTOP — Audit Report / Information 2025

51884_rns_2026-05-13_cc3afdc4-eb51-4ddc-b91b-e107ca036a2a.pdf

Evertop Wire Cable Corporation and Subsidiaries

Consolidated Financial Statements and Independent Auditor's Report

Table of Contents

Statement

Audit opinions

Basis for Opinion

Key Audit Matters

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

Evertop Wire Cable Corporation and Subsidiaries

Consolidated Balance Sheet

Evertop Wire Cable Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income

Evertop Wire Cable Corporation and Subsidiaries

Consolidated Statement of Changes in Equity

Evertop Wire Cable Corporation and Subsidiaries

Consolidated Statements of Cash Flows

Evertop Wire Cable Corporation and Subsidiaries

Notes to Consolidated Financial Statements

I Company History

II Approval Date and Procedures of the Consolidated Financial Statements

III Application of New Standards, Amendments and Interpretations

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

IV Summary of Significant Accounting Policies

(I) Compliance Statement

(II) Basis of Consolidation

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

1. Measurement bases

2. Functional and presentation currency

(VII) Foreign currency

1. Foreign currency transaction

2. Foreign operation

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

3. Derivative financial instruments

(X) Inventories

(XI) Investment property

(XII) Property, plant and equipment

1. Recognition and measurement

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

V Significant Accounting Assumptions and Judgments, and Major Sources of Estimation Uncertainty

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

VI Summary of Significant Accounting Items

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

(VIII) Property, plant and equipment

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

(IX) Right-of-use Assets

(X) Investment property

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

(XIII) Employee benefits

1. Defined benefit plan

(1) Composition of plan assets

(2) Movements in present value of the defined benefit obligations

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

2. Defined contribution plans

(XIV) Income taxes

Evertop Wire Cable Corporation and Subsidiaries Notes to the Consolidated Financial Statements (continued)

5. Deferred Tax (Assets) and Liabilities

(1) Unrecognized Deferred Tax Assets

(2) Recognized deferred tax assets

EVERTOP Audit Report / Information 2025