Stock Code: 1616

Evertop Wire Cable Corporation

Parent Company Only Financial Statements and Independent Auditors' Report

2025 and 2024

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

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Item	Page
I. Cover page	1
II. Table of Contents	2
III. Independent Auditors’ Report	3
IV. Balance sheet	4
V. Statement of Comprehensive Income	5
VI. Statement of Changes in Equity	6
VII. Statement of Cash Flows	7
VIII. Notes to Unconsolidated Financial Statements
(I) Company History	8
(II) Approval Date and Procedures of the Consolidated Financial Statements	8
(III) Application of New Standards, Amendments and Interpretations	8~10
(IV) Summary of Significant Accounting Policies	11~24
(V) Significant Accounting Assumptions and Judgments, and Major Sources of Estimation Uncertainty	24~25
(VI) Summary of Significant Accounting Items	25~50
(VII) Related Party Transaction	50~53
(VIII) Pledged Assets	53
(IX) Significant Contingent Liabilities and Unrecognized Commitments	53~54
(X) Losses Due to Major Disasters	54
(XI) Significant Events	54
(XII) Others	54~55
(XIII) Additional Disclosures
1. Information on Significant Transactions	56
2. Information on Investees	57
3. Information on Investment in China	57~58
(XIV) Segment Information	58
IX. Statements of Major Accounting Items	59~68

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Independent Auditor's Report

To the Board of Directors of Evertop Wire Cable Corporation

Audit opinions

We have audited the accompanying parent company only financial statements of EVERTOP WIRE CABLE CORPORATION (the “Company”), which comprise the balance sheets from January 1 to December 31, 2025 and 2024, the related statements of comprehensive income, changes in equity, and cash flows from January 1 to December 31, 2025 and 2024, and notes to the parent company only financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying parent company only financial statements present fairly, in all material respects, the accompanying parent company only financial position of the Company as of December 31, 2025 and 2024, and its parent company only financial performance and its parent company only cash flows as of December 31, 2025 and 2024 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

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 Unconsolidated Financial Statements section of our report. We are independent of the Company 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 parent company only financial statements of the Company for the year ended December 31, 2025. These matters were addressed in the context of our audit of the unconsolidated 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:

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I. Inventory Valuation

Description of Key Audit Matters:

For a description of accounting policies on valuation of inventories, please refer to Note 4(7), 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 parent company only financial statements.

The inventory of the Company includes 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 it 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 Company'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.

Responsibilities of Management and Those Charged With Governance for the Parent Company Only Financial Statements

Management is responsible for the preparation and fair presentation of the unconsolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and for necessary internal control as management determines is necessary to enable the preparation of unconsolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the parent company only financial statements, the management is responsible for assessing the ability of the Company 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 Company 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 Company's financial reporting process.

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Auditor’s Responsibilities for the Audit of the Parent Company Only Financial Statements

Our objectives are to obtain reasonable assurance about whether the unconsolidated 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 unconsolidated 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 unconsolidated 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 unconsolidated 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 Company.
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 Company to continue as a going concern. In case where we consider that such events or circumstances have a material uncertainty, then relevant disclosure of the unconsolidated financial statements are required to be provided in our audit report to allow users of unconsolidated financial statements to be aware of such events or circumstances, 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 Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the unconsolidated financial statements, including relevant notes, and whether the unconsolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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Obtain sufficient and appropriate audit evidence regarding the financial information of investees under the equity method, and expressing an opinion on parent company only financial statements. We are responsible for the direction, supervision, and performance of the audit of the Company. We remain solely responsible for our audit opinion.

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 parent company only financial statements of the Company for the year ended December 31, 2025 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: Jin-Guan-Zheng-Shen-Zi No. 1010004977
March 10, 2026

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Evertop Wire Cable Corporation

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))	$ 501,734	11	495,052	11	2100	Short-term Borrowings (Notes 6(10) and 8)	$ 1,116,572	25
1110	Financial Assets at Fair Value Through Profit or Loss -Current (Note 6(2))	-	-	3,314	-	2120	Financial Liabilities at Fair Value Through Profit or Loss -Current (Note 6(2))	32,126	1
1170	Notes and Accounts Receivable, Net (Note 6(4))	1,117,055	25	1,269,458	29	2130	Contract Liabilities-Current (Note 6(16))	102,332	2
1210	Other Receivables-Related Party (Note 7)	33,573	1	45,138	1	2170	Note payable and accounts payable	512,013	12
130x	Inventories (Note 6(6))	1,362,648	31	1,018,617	23	2220	Other Receivables -Related Party (Note 7)	247,263	6
1476	Other Financial Assets-Current (Notes 6(5) and 8)	278,722	6	141,815	3	2280	Lease Liabilities-Current (Note 6(11))	5,412	-
1479	Other current assets	27,536	1	114,024	3	2399	Other Current Liabilities-Others	167,084	4
		3,321,268	75	3,087,418	70			2,182,802	50
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(11))	718	-
						2600	Other Non-current Liabilities (Note 6(7) and (13))	3,784	-
1600	Property, Plants, and Equipment (Notes 6(8) and 8)	835,228	20	776,505	18			4,502	-
1755	Right-of-use Assets (Note 6(9))	6,019	-	12,909	-			2,187,304	50
1550	Investment Accounted for Using the Equity Method (Note 6(7))	152,317	3	479,822	11			2,187,304	50
1840	Deferred income tax assets (Note 6 (13))	40,499	1	41,160	1			2,187,304	50
1990	Other non-current assets (Note 6(12))	49,824	1	13,070	-			2,187,304	50
		1,083,887	25	1,323,466	30			2,187,304	50
						3110	Common share capital	1,941,485	44
						3220	Capital Surplus-Treasury Stock Trading	10,869	-
						3310	Statutory reserves	47,138	1
						3320	Special reserves	1,479	-
						3351	Retained 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	50
							Total liabilities and equities	$ 4,405,155	100

Total assets
$ 4,405,155 100 4,410,884 100

(Please refer to the accompanying notes to the parent company only financial statements.)

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Evertop Wire Cable Corporation

Statement of Comprehensive Income

For the years then ended December 31, 2025 and 2024

Unit: NT$ thousands

	2025		2024
		Amount	%	Amount	%
4110	Sales revenue	$ 5,210,800	100	4,535,683	100
4170	Less: Sales Return	3,159	-	949	-
	Sales revenue, net (Note 6(16))	5,207,641	100	4,534,734	100
5000	Operating cost (Note 6(6), (12) and 12)	4,424,281	85	3,976,057	88
	Gross profit	783,360	15	558,677	12
	Operating expenses (Notes 6(8), (9) (12), and 12):
6100	Selling expenses	79,458	2	58,011	1
6200	Administrative expenses	81,769	2	70,033	2
6300	Research and development expenses	7,330	-	7,999	-
6450	Expected credit impairment losses	-	-	-	-
	Total operating expenses	168,557	4	136,043	3
	Operating profit	614,803	11	422,634	9
	Non-operating income and expenses:
7010	Other income (Notes 6(18) and 7)	3,943	-	12,019	-
7020	Other gains and losses (Notes (19))	(153,304)	(3)	(42,136)	(1)
7050	Financial costs (Note 6(11) and 7)	(56,420)	(1)	(51,843)	(1)
7375	Share of Loss From Subsidiaries, Associated Companies, and Joint Ventures Accounted for Using the Equity Method	(8,527)	-	136,703	3
7100	Interest revenue (Note 7)	8,928	-	3,180	-
	Total non-operating incomes and expenses	(205,380)	(4)	57,923	1
7900	Profit before tax	409,423	7	480,557	10
7950	Less: income tax expenses (Note 6(13))	115,621	2	93,131	2
	Current period net profit	293,802	5	387,426	8
8300	Other comprehensive income:
8310	Items not reclassified into profit or loss (Note 6(12))
8311	Remeasurement of defined benefit programs	(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 related to items that may be reclassified (Note 6(13))	-	-	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	4	402,627	8
	Basic earnings per share (Unit: NT$) (Note 6(15))	$	1.55		2.04
	Diluted earnings per share (Unit: NT$) (Note 6(15))	$	1.55		2.04

(Please refer to the accompanying notes to the parent company only financial statements.)

Evertop Wire Cable Corporation

Statement of Changes in Equity

For the years then ended December 31, 2025 and 2024

	Common share capital	Additional paid-in capital	Statutory reserves	Special reserves	Accumulated profit and loss	Exchange differences on translation of the financial statements of foreign operations	Unit: NT$ thousands
							Treasury stocks	Total equity
Balance, January 1, 2024	$ 1,941,485	2,480	-	-	81,460	(61,793)	(85,077)	1,878,555
Current period net profit	-	-	-	-	387,426	-	-	387,426
Other comprehensive income recognized for the period	-	-	-	-	2,490	12,711	-	15,201
Total comprehensive income for this period	-	-	-	-	389,916	12,711	-	402,627
Appropriation and distribution of earnings:
Provision of legal reserve	-	-	8,146	-	(8,146)	-	-	-
Provision of special reserve	-	-	-	738	(738)	-	-	-
Cash dividends on common shares	-	-	-	-	(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
Current period net profit	-	-	-	-	293,802	-	-	293,802
Other comprehensive income recognized for the period	-	-	-	-	(2,405)	(40,508)	-	(42,913)
Total comprehensive income for this period	-	-	-	-	291,397	(40,508)	-	250,889
Appropriation and distribution of earnings:
Provision of legal reserve	-	-	38,992	-	(38,992)	-	-	-
Provision of special reserve	-	-	-	741	(741)	-	-	-
Cash dividends on common shares	-	-	-	-	(350,166)	-	-	(350,166)
Adjustment to capital surplus from dividends distributed to subsidiaries	-	8,389	-	-	-	-	-	8,389
Disposal of a subsidiary accounted for using the equity method	-	-	-	-	-	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

(Please refer to the accompanying notes to the parent company only financial statements.)

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Evertop Wire Cable Corporation

Statement of Cash Flows

For the years then ended December 31, 2025 and 2024

Unit: NT$ thousands

	2025	2024
Cash flows from operating activities:
Income before income tax	$ 409,423	480,557
Adjustments:
Income/expenses items
Depreciation and Amortization Expenses	41,197	40,503
Loss (gain) on financial assets and liabilities at fair value through profit or loss	(82,355)	1,693
Interest expenses	56,420	51,843
Interest revenue	(8,928)	(3,180)
Share of (gain) loss from subsidiaries, associated companies, and joint ventures accounted for using the equity method	8,527	(136,703)
Loss (gain) on disposal of property, plant and equipment	(498)	531
Loss on disposal of investments accounted for using the equity method	99,392	-
Expected credit impairment losses	15,919	-
Gain from price recovery of inventory.	(11,605)	(28,857)
Others	167	-
Total Income/Expense Items	118,236	(74,170)
Changes in assets/debts having to do with business activities:
Net Change in Assets Related to Operating Activities:
Financial Assets and Liabilities at FVTPL	108,812	5,957
Notes and Accounts Receivable	152,403	(334,801)
Other Receivables - Related Parties	-	(17,039)
Inventories	(332,426)	(8,390)
Other current assets	86,488	(98,447)
Other Financial Assets	2,378	11,027
Net defined benefit assets	(9,256)	-
Total Net Change in Assets Related to Operating Activities	8,399	(441,693)
Net Change in Liabilities Related to Operating Activities:
Note payable and accounts payable	(59,482)	82,934
Other current liabilities	9,629	23,096
Net Defined Benefit Liability - Non-current	-	92
Total Net Change in Liabilities Related to Operating Activities	(49,853)	106,122
Total Net Change in Assets and Liabilities Related to Operating Activities	(41,454)	(335,571)
Total Adjustment Items	76,782	(409,741)
Cash inflow provided by operating activities	486,205	70,816
Interest received	6,529	3,428
Interest paid	(56,972)	(44,387)
Income tax paid	(70,093)	(126,940)
Net cash inflow (outflow) from operating activities	365,669	(97,083)
Cash flows from investing activities:
Proceeds from the Capital Reduction of Investees Accounted for Using the Equity Method	277,605	-
Proceeds from disposal of property, plant and equipment	1,533	-
Acquisition of property, plant and equipment	(94,190)	(44,848)
Decrease (increase) in refundable deposits	(204,430)	21,320
Decrease in other receivables-related parties	(4,354)	81,920
Decrease (Increase) in Restricted Bank Deposits	39,267	(17,630)
Decrease in other non-current assets	2,017	-
Net cash inflow from investing activities	17,448	40,762
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	(309)	(314)
Increase (decrease) in other receivables - related parties	(10,687)	16,095
Repayment of Lease Principal	(6,907)	(6,625)
Distribution of cash dividends	(350,166)	(71,835)
Net cash (outflow) inflow from financing activities	(376,435)	458,025
Increase in Cash and Cash Equivalents for the Period	6,682	401,704
Cash and cash equivalents at the beginning of the year	495,052	93,348
Cash and cash equivalents at the end of the year	$ 501,734	495,052

(Please refer to the accompanying notes to the parent company only financial statements.)

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Evertop Wire Cable Corporation

Notes to Unconsolidated 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 is engaged in the manufacture, processing, sale, and installation of bare cooper wires, tinned wires, power cables, computer 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 parent company only 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 Company has initially adopted the following new IFRS amendments, which do not have a significant impact on its parent company only 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 Company assesses that the adoption of the following IFRS new amendments, effective for the annual period beginning on January 1, 2026, would not have a significant impact on its parent company only 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 Parent Company Only 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 Company, 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. |

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Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only 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 Company 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 Company completes its evaluation.

The Company 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 parent company only 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 to a Hyperinflationary Presentation Currency”

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Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

IV Summary of Significant Accounting Policies

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

(I) Compliance statement

These parent company only financial statements were prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers”.

(II) Basis of preparation

Measurement bases

Except for the following significant accounts, the parent company only 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 asset is the fair value of pension fund assets less the present value of defined benefit obligation.

Functional and presentation currency

The Company uses the currency of the primary economic environment in which it operates as its functional currency. The parent company only 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.

(III) Foreign currency

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 currencies using the exchange rate on that date. Non-monetary items denominated in foreign currencies that are measured at fair value are translated into the functional currencies 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

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Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

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 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 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.

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

The Company 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 Company, and all other liabilities are classified as non-current:

It is expected to be settled in the normal operating cycle;
it is held primarily for the purpose of trading;
liabilities are due to be settled within twelve months after the reporting date; or

~13~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

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.

(V) 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.

(VI) Financial instruments

Financial asset

If the purchase or sale of financial assets conforms to conventional transactions, the Company shall adopt the accounting treatment on the transaction date or delivery date for all purchases and sales of financial assets classified in the same way.

The Company 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 profit or loss. The Company 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; and
Its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

These assets are 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:

~14~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

It is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and
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 Company 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 Company’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 Company 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. 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 Company recognizes an impairment provision for expected credit losses (ECLs) on financial assets measured at amortized cost, which was including cash and cash equivalents, notes and accounts receivable, other receivables, guarantee deposit paid, and other financial assets.

~15~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

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 ECLs, the Company 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 Company'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 ECLs is the maximum contractual period over which the Company 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 Company in accordance with the contract and the cash flows that the Company expects to receive). ECLs are discounted at the effective interest rate of the financial asset.

On each reporting date, the Company assesses whether financial assets carried at 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 severely past due;
the lender of the borrower, for economic or contractual reasons relating to the borrower's financial difficulty, has granted to the borrower a concession that the

~16~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

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 Company has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. The Company 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 Company expects no significant recovery from the amount written off.

(5) Derecognition of financial assets

The Company 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 Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

The Company 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 Company 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 transactions

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

~17~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

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 Company derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expired. 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 balance sheet when, and only when, the Company 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.

Derivative financial instruments

The Company 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.

(VII) 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

~18~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

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.

(VIII) Investment in subsidiaries

The subsidiaries in which the Company holds controlling interest are accounted for under the equity method in the parent company only financial statements. Under the equity method, the profit or loss during the period and other comprehensive income presented in the parent company only financial reports shall be the same as the allocations of profit or loss during the period and of other comprehensive income attributable to owners of the parent company presented in the financial reports prepared on a consolidated basis, and the owners' equity presented in the parent company only financial reports shall be the same as the equity attributable to owners of the parent company presented in the financial reports prepared on a consolidated basis.

Changes in the Company's ownership interests in subsidiaries that do not result in the Company losing control over the subsidiaries are accounted for as equity transactions.

(IX) Property, plant and equipment

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 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 Company.

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

~19~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

component.

Land shall not be listed for depreciation.

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 2~20 years
(4) Leased improvements and other equipment 1~15 years

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

(X) Lease

At inception of a contract, the Company 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 Company 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 on 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 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 Company's incremental borrowing rate. Generally, the Company 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

~20~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

index or rate as of the commencement date;

(3) amounts expected to be payable under a residual value guarantee; and
(4) payments for purchase or termination options that are reasonably certain to 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) there is a change in the lease term resulting from a change of its assessment on whether it will exercise an option to purchase the underlying assets,
(4) there is a change of its assessment on whether it will exercise an extension or termination option; or
(5) there are any lease modifications.

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 Company 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 balance sheet.

The Company allocates the price listed in the contract to individual lease components. However, for the leases of land and buildings in which it is a lessee, the Company has elected not to separate non-lease components and account for the lease and non-lease components as a single lease component.

(XI) Impairment of non-financial assets

On each reporting date, the Consolidated Company 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.

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Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

For impairment testing, assets are grouped together into the smallest group of assets that generate 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.

(XII) 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 Company 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 Company’s main types of revenue are explained below:

(1) Sale of goods

The Company recognizes revenue when control of the products has 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 Company has objective evidence that all criteria for acceptance have been satisfied.

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

(2) Financing components

The Company 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 Company does not adjust any of the transaction prices for the time value of money.

(XIII) Employee benefits

Defined contribution plans

Obligations for contributions to defined contribution plans are expensed as the related

~22~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

service is provided.

Defined benefit plan

The Company’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 Company, 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 Company 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 Company 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 Company 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.

(XIV) Income Taxes

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 taxes comprise the expected tax payables or receivables on the taxable profits (losses) for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount is the best estimate of the expected payment or receipt based on the statutory

~23~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

tax rate or tax rate substantially enacted on the reporting date.

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 Company 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 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 at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefits will be realized; or reversed to the extent that it becomes probable that sufficient taxable profit will be available.

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 Company 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.

(XV) Earnings per Share

The Company 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 the ordinary shareholders of the Company divided by the weighted-

~24~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

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.

(XVI) Segment Information

The operating segment information is disclosed in the Company’s consolidated financial statements; therefore, the Company does not disclose segment information in these financial statements.

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

When preparing the parent company only 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 Company’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 parent company only financial statements.

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 Company 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 Company 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

~25~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

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 Company 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	$ 206,444	495,052
Time deposits	295,290	-
	$ 501,734	495,052

Please refer to Note 6(20) for the exchange rate risk and sensitivity analysis of financial assets and liabilities of the Company.

(II) Financial Assets and Liabilities at FVTPL

	2025.12.31	2024.12.31
Mandatorily Measured at Fair Value Through Profit or Loss:
Futures	$ -	3,314
Financial Liabilities at FVTPL:
Futures	$ (32,126)	(8,983)

(1) For disclosures on credit, currency, and interest rate risks in the said financial instruments, please refer to Note 6(22).

(2) The Company 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:

~26~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

Futures Contract:

	Open Position			Margin	Fair value
	Buyer/Seller	Volume	Transaction price
2025.12.31	Seller	1,500 tons	USD11,500/Ton to USD12,410/Ton	$ 73,938	(32,126)
2024.12.31	Seller	100 tons	USD$9,694/Ton	$ 2,909	3,314
2024.12.31	Buyer	1,100 tons	USD8,876/Ton to USD9,102/Ton	$ 32,001	(8,983)

(3) Please refer to Note 6(19) for the net valuation gains or losses on derivative financial instruments for the years ended December 31, 2025 and 2024.
(4) As of December 31, 2025 and 2024, the Company did not pledge any of the above financial assets as collateral.

(III) Financial Assets at FVTOCI

2025.12.31	2024.12.31

Equity Instruments Measured at Fair Value Through Other Comprehensive Income:

Domestic Unlisted Stocks

$	-	-

The Company designated the investments as equity securities at fair value through other comprehensive income because the Company 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	$ 119,225	132,520
Accounts receivable	999,854	1,138,962
Less: Allowance for bad debts	(2,024)	(2,024)
	$ 1,117,055	1,269,458

The Company applies the simplified approach to evaluate its expected credit losses (ECLs), i.e., the Company recognizes the impairment provision for lifetime ECLs for all receivables. The Company 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

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

and accounts receivable was as follows:

	2025.12.31
	Carrying Amount of Notes and Accounts Receivable	Weighted Average Loss Rate	Allowance for Expected Credit Losses
Not Past Due	$ 1,116,229	0%	-
30 Days or Less Past Due	378	0%	-
31 to 90 Days Past Due	448	0%	-
More Than 1 Year Past Due	2,024	100%	2,024
Total	$ 1,119,079		2,024
	2024.12.31
	Carrying Amount of Notes and Accounts Receivable	Weighted Average Loss Rate	Allowance for Expected Credit Losses
Not Past Due	$ 1,267,844	0%	-
30 Days or Less Past Due	1,614	0%	-
More Than 1 Year Past Due	2,024	100%	2,024
Total	$ 1,271,482		2,024

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

	2025	2024
Opening balance (i.e. ending balance)	$ 2,024	2,024

As of December 31, 2025 and 2024, the notes receivable and accounts receivable for the Company were not pledged as collateral.

(V) Other financial assets - current

	2025.12.31	2024.12.31
Refundable deposits	$ 240,495	68,028
Restricted Bank Deposit	31,493	70,760
Others	6,734	3,027
	$ 278,722	141,815

As of December 31, 2025 and 2024, the Company 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 facilities.

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Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

(VI) Inventories

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

For 2025 and 2024, the Company recognized reversal gains of NT$(11,605) thousand and NT$(28,857) thousand, respectively, due to inventories being written back to net realizable value.

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

(VII) Investments accounted for using the equity method

The components of investments accounted for using the equity method on the reporting date were as follows:

Subsidiary	2025.12.31	2024.12.31
	$ 152,317	479,822

For more information, please refer to the consolidated financial statements for the year ended December 31, 2025.
As of December 31, 2024, the equity-method investment in subsidiary Yifu is a long-term equity investment loan with a balance of NT$5,570 thousand. Thus, it is transferred to other liabilities under other non-current liabilities. As of December 31, 2025, no such circumstance existed.
As of December 31, 2025 and 2024, the Company did not provide any investment accounted for using the equity method as collateral.

(VIII) Property, plant and equipment

The movements of the cost, accumulated appreciation and impairment loss of the property, plants, and equipment of the Company 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	$ 548,294	191,482	276,878	125,924	19,678	1,162,256

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

January 1, 2025
Increase	903	10,530	22,748	25,012	34,997	94,190
Disposals and Retirement	-	(390)	(5,279)	(6,663)	-	(12,332)
	2,190	1,860	5,127	1,612	(10,956)	(167)
Reclassification
Balance at	$ 551,387	203,482	299,474	145,885	43,719	1,243,947
December 31, 2025
Balance at	$ 548,294	186,832	262,221	108,696	13,907	1,119,950
January 1, 2024
Disposals and Retirement	-	4,650	10,902	11,901	17,395	44,848
Retirement	-	-	(1,108)	(1,358)	-	(2,466)
	-	-	4,863	6,685	(11,624)	(76)
Reclassification
Balance at	$ 548,294	191,482	276,878	125,924	19,678	1,162,256
December 31, 2024
Accumulated Depreciation and Impairment Loss:
Balance at	$ -	111,613	216,345	57,793	-	385,751
January 1, 2025
Depreciation	-	8,068	15,845	10,352	-	34,265
for the year
Disposals and Retirement	-	(390)	(4,762)	(6,145)	-	(11,297)
Retirement	$ -	119,291	227,428	62,000	-	408,719
Balance at	$ -	103,917	199,579	50,546	-	354,042
January 1, 2024
Depreciation	-	7,696	17,346	8,602	-	33,644
for the year
Disposals and Retirement	-	-	(580)	(1,355)	-	(1,935)
Retirement	$ -	111,613	216,345	57,793	-	385,751

~30~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

December 31,
2024

Book value:
December 31, $551,387 84,191 72,046 83,885 43,719 835,228
2025
December 31, $548,294 79,869 60,533 68,131 19,678 776,505
2024
January 1, $548,294 82,915 62,642 58,150 13,907 765,908
2024

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 Company temporarily registered the ownership under the Chairman or director of the Company. The Company signed an agreement with the registered owner stating that all rights and obligations of the land belong to the Company. The land is currently used by the Company 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 our company is currently in progress.
Please refer to Note 8 for information on the property, plants, and equipment pledged as collateral for long-term and short-term loans as of December 31, 2025 and 2024.

(IX) Right-of-use assets

The cost and depreciation of the land and transportation equipment leased by the Company are as follows:

	Land	Other equipment	Total
Cost:
Balance on December 31, 2025 (beginning balance)	$ 28,591	8,078	36,669
Balance at January 1, 2024	$ 15,999	8,078	24,077
Increase	12,592	-	12,592
Balance at December 31, 2024	$ 28,591	8,078	36,669
Accumulated Depreciation:
Balance at January 1, 2025	$ 19,496	4,264	23,760
Depreciation Expense	4,197	2,693	6,890
Balance at December 31, 2025	$ 23,693	6,957	30,650
Balance at January 1, 2024	$ 15,484	1,571	17,055

~31~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

Depreciation Expense	4,012	2,693	6,705
Balance at December 31, 2024	$ 19,496	4,264	23,760
Carrying amount:
December 31, 2025	$ 4,898	1,121	6,019
December 31, 2024	$ 9,095	3,814	12,909
January 1, 2024	$ 515	6,507	7,022

(X) 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 the collateral for bank loans.

(XI) Lease liabilities

The amounts of lease liabilities for the Company were as follows:

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

Please refer to Note 6(20) for maturity analysis.

The amounts recognized in profit or loss were as follows:

	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

(XII) Employee benefits

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	$ 7,433	582

The Company makes defined benefit plan contributions to the pension fund account

~32~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

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 Company 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 Company's Bank of Taiwan labor pension reserve account balance amounted to 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 Company's defined benefit obligations in 2025 and 2024 are as follows:

	2025	2024
Defined Benefit Obligation, January 1	$ 17,544	18,222
Benefits Paid	(9,000)	(265)
Current Service Costs and Interest	546	617
Remeasurements of the net defined benefit liability (asset)	3,325	(408)
- Experience gains and losses on defined benefit obligations
- 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 Company'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

~33~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

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 Company’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

(5) Re-measurement of net defined benefit liability recognized in other comprehensive income

The Company’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 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 Company expects to contribute NT$266 thousand to the defined benefit plan

~34~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

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.

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

2. Defined contribution plans

The Company 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. Under this defined contribution plan, the Company 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$6,075 thousand and NT$5,924 thousand for the years ended December 31, 2025 and 2024, respectively.

(XIII) Income taxes

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

	2025	2024
Current Tax Expenses	$ 113,426	76,752
Deferred Tax Expenses	2,195	16,379
	$ 115,621	93,131

In 2025 and 2024, the Company had no income tax expense directly recognized in equity.

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

The amount of income tax (benefits) expenses recognized in other comprehensive income for the Company was as follows:

	2025	2024
Exchange differences on translation of the financial statements of foreign operations	$ -	3,178

The Company'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	480,557
Income Tax Using the Company’s Domestic Tax Rate	81,885	96,112
Net Change in Unrecognized Deferred Tax Assets	25,788	(8,278)
Underestimation of prior period income tax and others	7,948	5,297
	$ 115,621	93,131

Deferred tax assets and liabilities

(1) Unrecognized deferred tax assets

The Company's unrecognized deferred tax assets are as follows:

	2025.12.31	2024.12.31
Deductible temporary difference	$ 140,346	114,558

(2) Recognized deferred tax assets

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

	Loss on Valuation of Inventory	Share of the Subsidiaries Accounted for Using the Equity Method	Cumulative translation adjustment	Exchange losses and 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
Recognized in	-	-	3,178	-	3,178

~36~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

Other
Comprehensive
Income
Balance at
December 31, 2024$ (8,509) (24,640) (490) (7,521) (41,160)

(3) Recognized Deferred Tax Liabilities

Changes in the Company's deferred income tax liabilities 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

As of December 31, 2025, the Company’s income tax returns through 2023 have been assessed and approved by the Tax Authorities.

(XIV) 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

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

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.

3. 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' 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

On June 16, 2025 and June 24, 2024, the Company's shareholders meeting resolved the 2024 and 2023 profit distribution plan. The amount of dividends to be distributed to the shareholders is as follows:

	2024		2023
	Stock dividend rate ($)	Amount	Stock dividend rate ($/per share)	Amount
Dividends

~37~

~38~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

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 appropriation of earnings for the year 2025. The amounts of dividends to be distributed to owners are as follows:

Stock dividend rate (per share)	Amount
2025

Dividends distributed to common shareholders:
Cash dividends $ 1.36 $ 263,731

4. 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 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 prices of the relevant shares exceeded their acquisition costs.

(XV) Earnings per Share

1. Basic earnings per share

The Company's 2025 and 2024 basic earnings per share are calculated as follows:

(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)

~39~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

Weighted average number of outstanding common stock (thousand shares)	189,494	189,494
Basic earnings per share (NT$)	$ 1.55	2.04

2. 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 outstanding common stock shares after adjusting for the effect of dilution of all potential common stock shares, and are calculated as follows:

	2025	2024
Profit Attributable to Ordinary Shareholders of the Company	$ 293,802	387,426
Weighted average number of outstanding common stock (thousand shares)	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

(XVI) Revenue from contracts with customers

1. Disaggregation of revenue

	2025	2024
Primary Geographical Markets
Taiwan	$ 5,207,641	4,534,734
Major Product/Service Lines
Power Cables	$ 4,595,884	3,871,358
Telecommunication Cables	278,418	202,036
Fiber Cables	163,288	109,282
Rubber Cables	26,342	185,038
Others	143,709	167,020
	$ 5,207,641	4,534,734

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

~40~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

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 accounts receivable and allowance for impairment, please refer to Note 6(4).

(XVII) Remuneration to employees and directors

On June 16, 2025, the Company’s shareholders’ meeting resolved to amend the Articles of Incorporation. In accordance with 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 employee remuneration mentioned above, not 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 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 compensation for basic-level 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

~41~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

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 allocation and actual distribution of employee and director remuneration for the year 2024 by the company showed no discrepancies. Relevant information can be accessed via the Market Observation Post System.

(XVIII) Other income

The details of other income for the years ended December 31, 2021 and 2020 were as follows:

	2025	2024
Service Income	$ -	10,029
Others	3,943	1,990
	$ 3,943	12,019

(XIX) Other gains or losses

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

	2025	2024
Net Gain/Loss on foreign currency exchange	$ 44,247	(39,176)
Gain (loss) on disposal of property, plant and equipment	498	(531)
Expected credit impairment losses	(15,919)	-
Net valuation gain/loss on financial assets/liabilities at FVTPL	(82,355)	(1,693)
Loss on disposal of investments	(99,392)	-
Others	(383)	(736)
	$ (153,304)	(42,136)

(XX) Financial instruments

Credit risk

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

(1) Accounts receivables and other receivables

The Company has established a credit policy, and according to the policy, the

~42~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

Company must analyze its individual credit rating for each new customer before giving the standard payment and delivery terms. The review of the Company 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 Company's benchmark credit rating are only allowed to make the transaction with the Company on an advance receipt basis.

(2) Investment

The exposure to credit risk related for the bank deposits, fixed income investments, and other financial instruments is measured and monitored by the Company's finance department. The Company only deals with banks and other external parties with good credit rating 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$1,973,330 thousand and NT$1,954,777 thousand, respectively.

(4) Concentration of credit risk

The Company'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 risk. As of December 31, 2025 and 2024, the Company's total notes and accounts receivable from the top ten customers represented 68% and 84% of the total notes and accounts receivable, 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

Liquidity risk is the risk that the Company is unable to meet the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company manages and maintains a level of cash and cash equivalents adequate to finance the Company's operations and mitigate the effects of fluctuations in cash flows. In addition, the management of the Company monitors the utilization of borrowings and ensures compliance with loan conditions.

The table below summarizes the maturity profile of the Company's financial liabilities:

(1) Based on the undiscounted cash flows of financial liabilities from the earliest date on

~43~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

which the Company can be required to pay, including interest but excluding the effect on the net amount of the agreement.

(2) The maturity dates for other non-derivative financial liabilities were based on the agreed upon repayment dates.

(3) For derivatives with net settlement, the analysis is based on undiscounted contractual net cash inflows and outflows; for derivatives with gross settlement, the analysis is based on undiscounted gross cash inflows and outflows.

	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	512,013	512,013	512,013	-	-
Other Payables - Related Parties	247,263	247,263	247,263	-	-
Lease Liabilities (including non-current)	6,130	6,195	5,475	720	-
Other current liabilities	95,373	95,373	95,373	-	-
Derivative financial instruments
Outflow	32,126	32,126	32,126	-	-
	$ 2,009,477	2,038,607	2,037,887	720	-
December 31, 2024
Non-derivative financial liabilities
Short-term borrowings	$ 1,124,938	1,160,233	1,160,233	-	-
Note payable and accounts payable	571,495	571,495	571,495	-	-
Other Payables - Related Parties	257,707	257,707	257,707	-	-
Lease Liabilities (including non-current)	13,037	13,287	7,092	6,195	-
Other current liabilities	99,810	99,810	99,810	-	-

~44~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

Derivative financial instruments

Inflow	(3,314)	(3,314)	(3,314)	-	-
Outflow	8,983	8,983	8,983	-	-
	$ 2,072,656	2,108,201	2,102,006	6,195	-

The Company 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 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 prices, will affect the Company’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 Company is exposed to currency risk arising from the fact that certain of its business activities are denominated in currencies other than the respective functional currencies. To avoid the decrease in the value of foreign-currency assets and fluctuations in future cash flows arising from changes in foreign exchange rates, the Company uses derivative instruments to hedge the foreign currency risk.

The Company’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	$ 18,807	31.430	591,107	5,006	32.790	164,138
EUR	715	36.887	26,385	1	34.138	44
Financial liability
Monetary items
USD	44,778	31.430	1,407,386	42,764	32.790	1,402,244

The Company’s exposure to foreign currency risk arises from the translation of the foreign currency exchange gains and losses on cash and cash equivalents, accounts

~45~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

receivable and other receivables, loans, accounts payable, and other payables 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$7,899 thousand and NT$12,381 thousand, respectively. The same basis was used for the analysis in both periods.

Information on the exchange rate used to translate gains and losses on monetary items (both realized and unrealized) into the functional currencies of the Company and into the parent company's functional currency, the NTD, which is the Company's presentation currency, is as follows:

	2025		2024
	Exchange Gain or Loss	Average Exchange Rate	Exchange Gain or Loss	Average Exchange Rate
NTD	$ 44,247	-	(39,176)	-

(2) Interest rate risk

The interest rates of the Company'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
Financial liability	-	-
	$ 295,290	45,023
Variable-rate Instrument:
Financial asset	$ 237,336	520,185
Financial liability	(1,116,572)	(1,124,938)
	$ (879,236)	(604,753)

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 Company's net income would have decreased or increased by NT$2,198 thousand and NT$1,512 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 Company's financial liabilities for fixed-rate instruments are

~46~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

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.

4. Information on fair value

(1) Categories and fair value of financial instruments

The Company’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 measured at amortized cost
Cash and cash equivalents	$ 501,734
Notes Receivable and Accounts Receivable, Net	1,117,055
Other Receivables - Related Parties	33,573
Other Financial Assets	278,722
Refundable Deposits (non-current)	42,246
Subtotal	$ 1,973,330
Financial liabilities at FVTPL
Financial Liabilities Held for Trading	$ 32,126	-	32,126	-	32,126
Financial Liabilities Measured at Amortized Cost
Bank loans	$ 1,116,572
Note payable and accounts payable	512,013
Other Payables - Related	247,263

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

Parties
Lease Liabilities (including non-current)	6,130
Other Financial Liabilities	95,373
Subtotal	$ 1,977,351
		2024.12.31
		Fair value
	Carrying amount:	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Non-derivative Financial Assets Mandatorily Measured at Fair Value Through Profit or Loss	$ 3,314	-	3,314	-	3,314
Financial assets measured at amortized cost
Cash and cash equivalents	$ 495,052
Notes Receivable and Accounts Receivable, Net	1,269,458
Other Receivables - Related Parties	45,138
Other Financial Assets	141,815
Subtotal	$ 1,951,463
Financial liabilities at FVTPL
Financial Liabilities Held for Trading	$ 8,983	-	8,983	-	8,983
Financial Liabilities Measured at Amortized Cost
Bank loans	$ 1,124,938
Note payable and accounts payable	571,495
Other Payables - Related Parties	257,707
Lease Liabilities (including	13,037

~48~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

non-current)
Other Financial Liabilities 99,810
Subtotal $ 2,066,987

(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 Company 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 the 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.

(XXI) Financial risk management

Structure of risk management

The Company's risk management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to

~49~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

reflect changes in market conditions and the Company’s activities. The Company, 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 Company’s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Board of Directors is assisted in its oversight role by internal auditors. 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 Company has exposures to the following risks from its financial instruments:

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

The following likewise discusses the Company’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(20).

(XXII) Capital management

The Company'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 Company also considers debt ratios to keep the trust and confidence among investors, creditors, and the market. The debt ratio was 50% as of December 31, 2025 and 2024, respectively. As of December 31, 2025, there was no change in the Company's capital management strategy.

(XXIII) Non-cash investing and financing activities

Non-cash-traded investing and financing activities for the year ended December 31, 2025 and 2024 was as follows:

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

	Non-cash Movements
	2025.1.1	Cash flows	Others	Movements in Lease Payments	2025.12.31
Short-term borrowings	$ 1,124,938	(8,366)	-	-	1,116,572
Deposits received	606	(309)	-	-	297
Other Payables-Related Parties	257,707	(10,687)	243	-	247,263

~50~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

Lease liabilities	13,037	(6,907)	-	-	6,130
Total Liabilities Arising From Financing Activities	$ 1,396,288	(26,269)	243	-	1,370,262
	Non-cash Movements
---	---	---	---	---	---
	2024.1.1	Cash flows	Others	Movements in Lease Payments	2024.12.31
Short-term borrowings	$ 474,234	650,704	-	-	1,124,938
Long-term borrowings	130,000	(130,000)	-	-	-
Deposits received	920	(314)	-	-	606
Other Payables-Related Parties	241,238	16,095	374	-	257,707
Lease liabilities	7,070	(6,625)	12,592	-	13,037
Total Liabilities Arising From Financing Activities	$ 853,462	529,860	12,966	-	1,396,288

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 parent company only financial statements:

Related Party Name	Relationship with the Company
Evertop (British Virgin Islands) Co., Ltd.	Subsidiary of the Company
Yifu Investment Co., Ltd.	"
EVERTOP HITEK (VIETNAM) CO., LTD	"
(Evertop Vietnam)
Asia Victory Limited (Asia Victory H.K.)	"
Taiko Industrial Co., Ltd. (Taiko Industrial H.K.)	"
EVERTOP (DONG GUAN) WIRE CABLE CO., LTD. (EVERTOP (DONG GUAN))	"
Evertop (Suzhou) Wire and Cable Co., Ltd.	"
(Evertop Suzhou)
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
CHANG,AI-FEN	"

~51~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

(III) Significant related party transactions

1. Financing

Information on the lending of funds to related parties and the ending balances for the years ended December 31, 2025 and 2024 were as follows:

(1) Other Receivables - Related Parties

	2025
	Maximum Balance for the Period	Ending Balance	Actual Usage Amount at the End of the Period	Interest Rate Agreed On	Interest Income for the Period	Interest Payable at the End of the Period
Evertop Hitek (Vietnam)	$ 65,660	-	-	5%	-	-
Yifu	$ 10,000	10,000	-	0%	-	-
	2024
	Maximum Balance for the Period	Ending Balance	Actual Usage Amount at the End of the Period	Interest Rate Agreed On	Interest Income for the Period	Interest Payable at the End of the Period
Evertop Hitek (Vietnam)	$ 126,340	65,580	-	5%	415	-
Yifu	$ 10,000	10,000	5,146	0%	-	-

(2) Other Payables - Related Parties

	2025
	Maximum Balance for the Period	Ending Balance	Actual Usage Amount at the End of the Period	Interest Rate Agreed On	Interest expense for the Period	Interest Payable at the End of the Period
Asia Victory Limited	$ 99,600	94,290	-	-	-	-
Taiko Industrial	$ 302,120	286,013	244,525	0.1%	243	2,298

~52~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

Co., Ltd.
Evertop Hitek
$ 328,300 - - 0.1% - -
(Vietnam)
2024

	Maximum Balance for the Period	Ending Balance	Actual Usage Amount at the End of the Period	Interest Rate Agreed On	Interest expense for the Period	Interest Payable at the End of the Period
Asia Victory Limited	$ 98,565	98,370	-	-	-	-
Taiko Industrial Co., Ltd.	$ 298,981	298,389	255,106	0.1%	250	2,142

Service Income

The Company provided management, marketing, and technical services to its subsidiaries and received service revenue of NT$10,029 thousand for the years ended December 31, 2024, respectively. As of December 31, 2025 and 2024, the outstanding balances of other receivables from related parties arising from the above transactions were NT$15,919 thousand and NT$14,755 thousand, respectively. In 2025, due to the liquidation of Evertop Vietnam, a full allowance for losses was recognized for the related receivable.

Recognized as purchase and payment transactions on behalf of others.

As of December 31, 2025 and 2024, the balances of receivables of payments made on behalf of related parties were as follows:

Subsidiary

2025.12.31	2024.12.31
$ 33,573	25,237

Receipts under custody

For the years ended December 31, 2025 and 2024, the Company collected payments on behalf of its subsidiaries and used them to offset related parties' receivables. The balances of payables generated were NT$440 thousand and NT$459 thousand as of December 31, 2025 and 2024, respectively.

Endorsements/guarantees

As of December 31, 2025 and 2024, the balances of the Company's long-term and short-term loans from financial institutions totaled NT$1,116,572 thousand and

~53~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

NT$1,124,938, thousand, respectively, and were jointly endorsed and guaranteed by CHANG, MING-CHUAN; WANG, YIN-HO; and CHANG, AI-HUI.

(IV) Key Management Personnel Transactions

Key Management Personnel Compensation Comprised:

	2025	2024
Short-term employee benefits	$ 52,513	31,462
Post-employment benefits	9,000	-
	$ 61,513	31,462

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 were NT$22,423 thousand and NT$23,797 thousand.

(V) Others

Some of the Company's real estate is 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
Buildings	Long-term and Short-term Borrowings	74,553	70,016
Restricted Bank Deposit (recognized as other financial asset)	Short-term Loans and Performance Bonds	31,493	70,760
		$ 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:

	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 Company commits suppliers to purchase major raw materials in the future is as follows:

Currency	2025.12.31	2024.12.31

~54~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

Raw Materials Procurement
NTD $ 2,796,888 2,175,431

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

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

(IV) The amount for performance guarantee notes and standby-L/C issued by the Company 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 Company for post-release duty payment of import tariffs was as follows:

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

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

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

(VII) For operational needs, the Company 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 | | |
| --- | --- | --- | --- | --- | --- | --- |
| | Attributable
to operating
costs | Classified as
operating
expenses | Total | Attributable
to operating
costs | Classified as
operating
expenses | Total |

~55~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

Employee benefit expense
Salary expense	135,529	65,737	201,266	128,755	56,106	184,861
Labor and health insurance expense	13,128	3,444	16,572	12,324	2,857	15,181
Pension	4,811	1,458	6,269	4,901	1,382	6,283
Remuneration of Directors	-	339	339	-	318	318
Other Employee Benefit Expense	7,543	1,966	9,509	7,136	1,726	8,862
Depreciation expense	35,050	6,105	41,155	34,194	6,155	40,349
Amortization cost	38	4	42	146	8	154

The information on employees and employee benefits expenses of the Company for the year ended December 31, 2025 and 2024 was as follows:

	2025	2024
Number of employees	218	217
Number of Directors Who Were not Employees	3	3
Average Employee Benefits	$ 1,087	1,006
Average Salaries and Wages	$ 936	865
Average Adjustment of Employee Salaries and Wages	8.21%	20.14%

The Company's salary and remuneration policy (including directors, managers, and employees) is as follows:

(I) Employees' compensation

It includes a fixed salary, allowances, and variable bonuses. The actual compensation received will be determined based on factors such as education background, professional knowledge and skills, years of experience, individual performance, and overall contribution.

(II) Remuneration to managers

Managers are accountable for the results of the Company's operational performance. Compensation is approved based on the employee compensation policy, target achievement status, and the current year's employee bonus policy with reference to past payment and industry pay levels. The Remuneration Committee will review and evaluate the compensation plan and submit it to the Board of Directors for approval.

(III) Remuneration to directors

The remuneration to directors consists of directors' remuneration and travel expenses for attending quarterly Board meetings. The remuneration to directors is determined according to Article 25 of the Company's Articles of Incorporation.

~56~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

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 Company:

Financing provided to others:

No.	Lender	Borrower	Financial Statement Account	Related Party	Highest Balance of Financing to Other Parties During the Period	Ending Balance (Note 3)	Amount actually drawn	Interest Rate	Nature of Loan	Business Transaction Amounts	Reason for Short-term Funding	Provisions for allowance for loss	Collateral		Single Borrower Lending Limit (Note 1)	Aggregate Lending Limit
													Title	Value
0	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)
0	The Company	Yifu	Other Receivables to Related Parties	Yes	10,000	10,000	-	0%	#	-	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	-	0%	#	-	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.

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				Remarks
				Number of shares (thousand shares)	Carrying amount:	Shareholding Ratio	Market price
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	Note

Note: Please refer to Note 6(14) 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	Related party	Relationship	Ending Balance of Receivables From	Turnover Rate	Overdue		Amounts Received in	Loss Provisions
					Amount	Actions Taken

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

recognized			Related Parties	(Note 1)			Subsequent Period	Made
Taiko Industrial Hong Kong	The Company	100% owned Subsidiary of the Company	Other receivables 246,823	-	-	-		-

Note 1: Not applicable because it is the lending of funds.

(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 amount investment		Shareholding at the end of the period			Net income (loss) of the investee	Investment gains and losses recognized in the current period	Remarks
				End of the period	End of last year	Number of shares	Ratio	Carrying amount:
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)	Subsidiary
The Company	Evertop Hitek (Vietnam)	Vietnam	Processing, manufacturing, and trading of enameled wires, wires and cables	292,191 (Note 1)	569,797	8,476	100.00%	-	16,218	16,218	#
The Company	Yifa	Taiwan	Investment	86,440	86,440	8,644	99.95%	1,616	7,186	(1,204)	#
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)	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)	#

Note 1: During the current period, a capital reduction was carried out with a return of capital, and liquidation is in progress.

(III) Information on investment in China :

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

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.

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

~58~

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

517,076	517,076	1,330,711

Note 3: The cumulative investment amount was NTS141,545 thousand, NTS312,668 thousand, and NTS62,863 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.

Significant transactions with investees in Mainland China:

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

XIV Segment Information

Please refer to the 2025 consolidated financial statements.

~59~

Evertop Wire Cable Corporation

Statement of cash and cash equivalents

December 31, 2025

Unit: NT$
thousands

Item	Description	Amount
Cash on hand		$ 601
Cash in banks:
Demand deposits		82,054
Checking accounts		99,861
Foreign Currency Deposit	USD761 Thousand, Exchange Rate 31.430	23,928
Time deposits	USD9,395 Thousand, Exchange Rate 31.43, Interest Rate: 3.88%	295,290
		$ 501,734

Statement of Notes Receivable and Accounts Receivable

Customer No.	Description	Amount
BAA001	Business	$ 181,840
AAC014	〃	155,094
AAC033	〃	137,041
AAE037	〃	110,685
AAJ017	〃	77,585
AAE009	〃	57,799
Others (less than 5%)	〃	399,035
		1,119,079
Less: Allowance for bad debts		(2,024)
		$ 1,117,055

~60~

Evertop Wire Cable Corporation

Statement of inventories

December 31, 2025

Unit: NT$
thousands

Item	Amount
	Cost	Net realizable value
Raw materials	$ 341,827	334,208
Less: Allowance for bad debts	(7,619)
	334,208
Work in process	534,372	586,227
Less: Allowance for bad debts	(8,329)
	526,043
Finished Goods and Merchandise	517,389	613,523
Less: Allowance for bad debts	(14,992)
	502,397
Total	$ 1,362,648	1,533,958

Statement of Other Financial Assets - Current

Please refer to Note 6(5) of the Parent Company Only Financial Statements.

~61~

Evertop Wire Cable Corporation

Statement of other current assets

December 31, 2025

Unit: NT$
thousands

Item	Description	Amount
Prepayment for purchases		$ 14,162
Prepayments	Prepaid Premiums and Annual Fees	5,123
Residual tax credit		3,160
Others (not exceeding 5%)		5,091
Total		$ 27,536

Statement of other non-current assets

Item	Amount
Refundable deposits	$ 42,246
Net defined benefit assets	7,433
Others (not exceeding 5%)	145
Total	$ 49,824

~62~

Evertop Wire Cable Corporation

Statement of changes in investments accounted for using the equity method

For the year ended December 31, 2025

Unit: NT$ thousands

Investee company	Beginning retained earnings		Addition		Disposal		Other Adjustment		Ending Balance			Total Market Value or Net Worth	Guarantee or pledge status
	Number of shares	Amount	Number of shares	Amount	Number of shares	Amount	Number of shares	Amount	Number of shares	Shareholding percentage	Amount
Evertop (British	19,173	$180,988	-	-	-	-	-	(30,287)	19,173	100.00%	150,701	150,701	None
Virgin Islands) Co., Ltd.
Evertop Hitek Co., Ltd (Vietnam)	17,776	298,834	-	-	-	-	(9,300)	(298,834)	8,476	100.00%	-	-	〃
							(Note 1)
Yifu Investment Co., Ltd.	8,644	(5,570)	-	-	-	-	-	7,186	8,644	99.95%	1,616	133,351	〃
Reclassified as Other Liabilities	-	5,570	-	-	-	-	-	(5,570)	-	-%	-	-	〃
Total		$479,822		-		-		(327,505)			152,317	284,052

Note 1: During the current period, a capital reduction was carried out with a return of capital, and liquidation is in progress.
Note 2: Other changes include investment income or loss recognized using the equity method and cumulative translation adjustments.

~63~

Evertop Wire Cable Corporation

Statement of Changes in Property, Plants, and Equipment

For the year ended December 31, 2025

Please refer to Note 6(8) of the Parent Company Only Financial Statements.

Statement of Changes in Right-of-use Assets

Please refer to Note 6(9) of the Parent Company Only Financial Statements.

~64~

Evertop Wire Cable Corporation

Statement of Short-term Borrowings

December 31, 2025

Unit: NT$ thousands

Creditors	Description	Amount	Contract Period	Interest Rate	Pledge or Collateral
First	Letter of Credit	$ 32,565	Less than 1 Year	Note	Restricted Deposit
Commercial Bank	Financing
Land Bank of Taiwan	〃	97,262	〃	〃	〃
Mega Bank	〃	281,331	〃	〃	Land and Buildings
Bank of Taiwan	〃	262,572	〃	〃	〃
Far Eastern International Bank	〃	31,035	〃	〃	None
Fubon Bank	〃	68,779	〃	〃	〃
Hua Nan Commercial Bank	〃	239,775	〃	〃	〃
Taishin Bank	〃	62,882	〃	〃	〃
Shin Kong Bank	〃	40,371	〃	〃	〃

$ 1,116,572

Note: The interest rates range for all short-term loans were between 4.80%–5.61% at the end of the period.

~65~

Evertop Wire Cable Corporation

Statement of Notes Payable and Accounts Payable

December 31, 2025
Unit: NT$ thousands

Company name	Description	Amount
1210144	Business	$ 113,825
1210162	“	113,456
1210148	“	42,401
1210152	“	40,043
1210261	“	36,211
1210001	“	35,686
Others (not exceeding 5%)	“	130,391
Total		$ 512,013

Statement of Other Current Liabilities

Item	Amount
Income Tax Payable	$ 71,188
Payable expenses	65,083
Remuneration to employees and directors	21,549
Others (less than 5%)	9,264
Total	$ 167,084

~66~

Evertop Wire Cable Corporation

Statement of Other Non-current Liabilities

December 31, 2025
Unit: NT$ thousands

Item	Amount
Deferred tax liabilities	$ 3,487
Deposits received	297
Total	$ 3,784

Statement of operating revenue

For the year ended December 31, 2025

Item	Quantity	Amount
Power Cables	15,268 metric tons	$ 4,595,884
Telecommunication Cables	1,598 metric tons	278,418
Fiber Cables	399 metric tons	163,288
Rubber Cables	63 metric tons	26,342
Others	1,097 metric tons	143,709
Total		$ 5,207,641

~67~

Evertop Wire Cable Corporation

Statement of operating costs

For the year ended December 31, 2025
Unit: NT$ thousands

Item	Amount
International Trade
Beginning Inventory	$ 201,555
Add: Addition	1,412,745
Less: Ending Inventory	146,543
Cost of Goods Sold	1,467,757
Raw materials
Beginning Raw Materials	226,760
Add: Addition	2,967,186
Less: Ending Raw Materials	341,827
Cost of sales of raw materials	64,332
Materials Used for R&D	350
Raw Materials Used for the Period	2,787,437
Direct labor	114,076
Production overheads	270,923
Production cost	3,172,436
Add: Beginning Work in Process	407,017
Work in Progress Purchased	1,182
Less: Ending Work in Process	534,372
Materials Used for R&D	326
Cost of finished goods inventory	3,045,937
Add: Beginning Finished Goods	225,830
Less: Ending Finished Goods	370,846
Cost of Finished Goods Sold	2,900,921
Add: Cost of Sales of Raw Materials	64,332
Gain or loss on inventory valuation	(11,605)
Cost of electricity sold and others	2,876
Operating costs	$ 4,424,281

~68~

Evertop Wire Cable Corporation

Statement of operating expenses

For the year ended December 31, 2025 Unit: NT$ thousands

Item	Selling expenses	Administrative expenses	Research and development expenses
Wages and Salaries	$ 15,397	45,468	4,872
Entertainment expenses	38,012	14,671	-
Transportation expenses	16,194	10	6
Insurance expense	1,440	1,873	493
Testing and Inspection Fees	-	-	979
Depreciation	1,202	4,847	56
Labor service expense	-	4,341	53
Other Expenses (not exceeding 5%)	7,213	10,559	871
Total	$ 79,458	81,769	7,330

AI assistant

EVERTOP — Audit Report / Information 2025

51884_rns_2026-05-13_db98ab8f-615b-40d1-a63a-c50a0bb8eb6d.pdf

Evertop Wire Cable Corporation

Parent Company Only Financial Statements and Independent Auditors' Report

Table of Contents

Audit opinions

Basis for Opinion

Key Audit Matters

Auditor’s Responsibilities for the Audit of the Parent Company Only Financial Statements

Evertop Wire Cable Corporation

Balance sheet

Evertop Wire Cable Corporation

Statement of Comprehensive Income

Evertop Wire Cable Corporation

Statement of Changes in Equity

Evertop Wire Cable Corporation

Statement of Cash Flows

Evertop Wire Cable Corporation

Notes to Unconsolidated Financial Statements

2025 and 2024

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 Parent Company Only Financial Statements (continued)

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

IV Summary of Significant Accounting Policies

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

2. Foreign operation

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

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

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

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

VI Summary of Significant Accounting Items

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

(4) Expenses Recognized in Profit or Loss

(5) Re-measurement of net defined benefit liability recognized in other comprehensive income

(6) Actuarial assumptions

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

(7) Sensitivity analysis

2. Defined contribution plans

(XIII) Income taxes

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

3. Retained earnings

(1) Statutory reserves

(2) Special reserves

(3) Earnings distribution

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

4. Treasury stocks

(XV) Earnings per Share

1. Basic earnings per share

(1) Profit Attributable to Ordinary Shareholders of the Company

(2) Weighted Average Number of Ordinary Shares Outstanding

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

2. Diluted earnings per share

(XVI) Revenue from contracts with customers

1. Disaggregation of revenue

2. Contract balance

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

Evertop Wire Cable Corporation and Subsidiaries Notes to the Parent Company Only Financial Statements (continued)

EVERTOP Audit Report / Information 2025