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FARGLORY FREE TRADE ZONE
INVESTMENT HOLDING CO., LTD. AND
SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS AND
INDEPENDENT AUDITORS' REPORT
DECEMBER 31, 2025 AND 2024

For the convenience of readers and for information purpose only, the auditors' report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors' report and financial statements shall prevail.

INDEPENDENT AUDITORS' REPORT TRANSLATED FROM CHINESE

To the Board of Directors and Shareholders of Farglory Free Trade Zone Investment Holding Co., Ltd.

Opinion

We have audited the accompanying consolidated balance sheets of Farglory Free Trade Zone Investment Holding Co., Ltd. and subsidiaries (the "Group") as at December 31, 2025 and 2024, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of material accounting policies.

In our opinion, based on our audits and the report of other auditors (refer to the Other matter section), the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect as endorsed by the Financial Supervisory Commission.

Basis for opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the consolidated financial statements section of our report. We are independent of the Group in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. Based on our audits and the report of other auditors, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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Key audit matters

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

Key audit matters for the Group’s 2025 consolidated financial statements is stated as follows:

Key Audit Matter: Timing of Revenue Recognition for Customer Contracts

Description

In 2025, customer contract revenue accounted for over 70% of the Group’s consolidated operating revenue, and the recognition of operating revenue has a significant impact on the financial statements. Therefore, we considered the timing of revenue recognition for customer contracts as one of the key audit matters.

For accounting policies related to revenue, refer to Note 4(27) of the consolidated financial statements for accounting policies related to revenue and Note 6(24) for details of the operating revenue.

For accounting policies related to revenue, please refer to Note 4(27) of the consolidated financial statements. For details on the operating revenue accounting accounts, please refer to Note 6(24) of the consolidated financial statements.

How our audit addressed the matter:

We performed the following audit procedures in respect of the above key audit matter:

A. Obtained an understanding and evaluated the internal control procedures regarding the timing of revenue recognition, and tested the effectiveness of internal controls related to revenue.

B. Reviewed customer contract revenue transactions and verified supporting documents to confirm the appropriateness of revenue recognition.

C. Performed cut-off tests for customer contract revenue transactions within a certain period before and after the financial statement date, and verified the relevant supporting documents to assess the appropriateness of revenue cut-off.

~4~

Other matter – Reference to the audits of other auditors

As disclosed in Note 6(6), we did not review the financial statements of an investment accounted for under the equity method, Innotech Logistics Co., Ltd., which were reviewed by other auditors. Therefore, our opinion expressed herein, insofar as it relates to the amounts included in respect of this associate, is based solely on the report of the other auditors. The balance of this investment accounted for under the equity method amounted to NT$79,099 thousand and NT$77,622 thousand, both constituting -% of the consolidated total assets as at December 31, 2025 and 2024, respectively, and the total comprehensive income recognized from investment accounted for under the equity method amounted to NT$1,477 thousand and NT$820 thousand, both constituting -% of the consolidated total comprehensive income for the years then ended, respectively.

Other matter – Parent company only financial reports

We have audited and expressed an unmodified opinion on the parent company only financial statements of Farglory Free Trade Zone Investment Holding Co., Ltd. as at and for the years ended December 31, 2025 and 2024.

Responsibilities of management and those charged with governance for the consolidated financial statements

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

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

Those charged with governance, including supervisors, are responsible for overseeing the Group's financial reporting process.

Auditors' responsibilities for the audit of the consolidated financial statements

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

As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgment and professional skepticism throughout the audit. We also:

A. Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our 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.

B. 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 Group's internal control.

C. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

~5~

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

E. Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

F. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. 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 those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

~6~

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

Chih, Ping-Chiun

Liao, Fu-Ming

For and on behalf of PricewaterhouseCoopers, Taiwan

March 11, 2026

The accompanying consolidated financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying consolidated financial statements and independent auditors' report are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

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FARGLORY FREE TRADE ZONE INVESTMENT HOLDING CO., LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2025 AND 2024
(EXRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Assets	Notes	December 31, 2025		December 31, 2024
		Amount	%	Amount	%
Current assets
1100	Cash and cash equivalents	6(1)	$ 858,619	3	$ 520,331	2
1110	Financial assets at fair value through profit or loss - current	6(2)	34,701	-	50,012	-
1136	Financial assets at amortised cost - current	6(4) and 8	230,000	1	380,000	2
1150	Notes receivable, net	6(5)	3,242	-	4,708	-
1170	Accounts receivable, net	6(5)	357,127	2	310,137	1
1200	Other receivables		34,845	-	25,046	-
1410	Prepayments		30,467	-	24,884	-
1470	Other current assets		1,757	-	1,322	-
11XX	Total current assets		1,550,758	6	1,316,440	5
Non-current assets
1517	Financial assets at fair value through other comprehensive income - non-current	6(3)	-	-	100	-
1535	Financial assets at amortised cost - non-current	6(4) and 8	216,000	1	276,000	1
1550	Investments accounted for using equity method	6(6)	79,099	-	77,622	-
1600	Property, plant and equipment	6(7), 7 and 8	3,204,763	12	3,057,690	12
1755	Right-of-use assets	6(8)	3,114,930	11	3,130,047	12
1760	Investment property - net	6(10) and 8	18,661,108	69	18,562,834	69
1780	Intangible assets		14,222	-	10,579	-
1840	Deferred income tax assets	6(31)	289,936	1	316,901	1
1900	Other non-current assets	6(11) and 8	25,868	-	26,874	-
15XX	Total non-current assets		25,605,926	94	25,458,647	95
1XXX	Total assets		$ 27,156,684	100	$ 26,775,087	100

(Continued)

FARGLORY FREE TRADE ZONE INVESTMENT HOLDING CO., LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2025 AND 2024
(EXRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Liabilities and Equity	Notes	December 31, 2025		December 31, 2024
		Amount	%	Amount	%
Current liabilities
2100	Short-term borrowings	6(12), 7 and 8	$ 1,450,000	5	$ 1,110,000	4
2110	Short-term notes and bills payable	6(13) and 7	99,682	-	599,571	2
2150	Notes payable		70,218	-	88,106	-
2160	Notes payable - related parties	7	195	-	188	-
2200	Other payables	6(14)	453,437	2	355,279	1
2220	Other payables - related parties	7	52,647	-	54,898	-
2230	Current income tax liabilities		161,548	1	105,861	1
2280	Lease liabilities - current		91,098	-	90,739	1
2320	Long-term liabilities, current portion	6(16), 7 and 8	933,864	4	722,073	3
2399	Other current liabilities	6(15)	62,490	-	54,708	-
21XX	Total current liabilities		3,375,179	12	3,181,423	12
Non-current liabilities
2540	Long-term borrowings	6(16), 7 and 8	8,428,732	31	8,905,321	33
2570	Deferred income tax liabilities	6(31)	33,211	-	39,887	-
2580	Lease liabilities - non-current		3,221,508	12	3,210,608	12
2600	Other non-current liabilities	6(17)(18) and 7	1,044,915	4	1,015,243	4
25XX	Total non-current liabilities		12,728,366	47	13,171,059	49
2XXX	Total liabilities		16,103,545	59	16,352,482	61
Equity attributable to owners of parent
	Share capital	6(19)
3110	Common stock		3,705,529	14	3,632,872	14
	Capital surplus	6(20)
3200	Capital surplus		4,354,546	16	4,354,546	16
	Retained earnings	6(21)
3310	Legal reserve		756,743	3	665,777	2
3350	Unappropriated retained earnings		2,236,321	8	1,769,410	7
31XX	Equity attributable to owners of the parent		11,053,139	41	10,422,605	39
3XXX	Total equity		11,053,139	41	10,422,605	39
	Significant contingent liabilities and unrecorded contract commitments	9
	Significant events after the balance sheet date	11
3X2X	Total liabilities and equity		$ 27,156,684	100	$ 26,775,087	100

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

FARGLORY FREE TRADE ZONE INVESTMENT HOLDING CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2025 AND 2024

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS, EXCEPT FOR EARNINGS PER SHARE)

	Items	Notes	2025		2024
			Amount	%	Amount	%
4000	Operating revenue	6(24)	$ 4,143,048	100	$ 3,464,767	100
5000	Operating costs	6(29)(30)	( 2,084,903)	( 50)	( 1,829,548)	( 53)
5900	Gross profit		2,058,145	50	1,635,219	47
	Operating expenses	6(29)(30)
6100	Selling expenses		( 115,428)	( 3)	( 101,380)	( 3)
6200	General and administrative expenses		( 414,667)	( 10)	( 391,159)	( 11)
6450	Impairment gain	12(2)	908	-	1,131	-
6000	Total operating expenses		( 529,187)	( 13)	( 493,670)	( 14)
6900	Operating profit		1,528,958	37	1,141,549	33
	Non-operating income and expenses
7100	Interest income	6(25)	8,003	-	8,951	-
7010	Other income	6(26)	12,321	-	15,928	1
7020	Other gains and losses	6(27)	( 5,288)	-	( 6,533)	-
7050	Finance costs	6(28)	( 333,089)	( 8)	( 332,745)	( 10)
7060	Share of profit of associates and joint ventures accounted for using equity method	6(6)
			1,477	-	820	-
7000	Total non-operating income and expenses		( 316,576)	( 8)	( 313,579)	( 9)
7900	Profit before income tax		1,212,382	29	827,970	24
7950	Income tax expense	6(31)	( 184,577)	( 4)	( 110,011)	( 3)
8200	Profit for the year		$ 1,027,805	25	$ 717,959	21
	Other comprehensive income
	Components of other comprehensive income that will not be reclassified to profit or loss
8311	Gain (loss) on remeasurements of defined benefit plans	6(18)	$ 2,549	-	($ 895)	-
8316	Unrealised gain from investments in equity instruments measured at fair value through other comprehensive income	6(23)
8349	Income tax related to components of other comprehensive income that will not be reclassified to profit or loss	6(31)
			( 510)	-	179	-
8300	Total other comprehensive income for the year		$ 2,039	-	$ 20,388	-
8500	Total comprehensive income for the year		$ 1,029,844	25	$ 738,347	21
	Profit attributable to:
8610	Owners of the parent		$ 1,027,805	25	$ 716,913	21
8620	Non-controlling interest		$ -	-	$ 1,046	-
	Comprehensive income attributable to:
8710	Owners of the parent		$ 1,029,844	25	$ 737,301	21
8720	Non-controlling interest		$ -	-	$ 1,046	-
	Earnings per share (in dollars)	6(32)
9750	Basic earnings per share		$	2.77	$	1.93
9850	Diluted earnings per share		$	2.77	$	1.93

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

FARGLORY FREE TRADE ZONE INVESTMENT HOLDING CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

YEARS ENDED DECEMBER 31, 2025 AND 2024

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

	Notes	Equity attributable to owners of the parent						Non-controlling interests	Total equity
		Retained Earnings			Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income	Total
		Share capital – common stock	Capital surplus, additional paid-in capital	Legal reserve			Unappropriated retained earnings
Year ended December 31, 2024
Balance at January 1, 2024		$ 3,363,770	$ 4,308,852	$ 573,601	$ 1,523,771	$ 219,802	$ 9,989,796	$ -	$ 9,989,796
Profit for the year		-	-	-	716,913	-	716,913	1,046	717,959
Other comprehensive income (loss)	6(23)	-	-	-	(716)	21,104	20,388	-	20,388
Total comprehensive income		-	-	-	716,197	21,104	737,301	1,046	738,347
Not subscribing to the subsidiary's capital increase according to shareholding ratio	6(22)	-	-	-	(47,447)	-	(47,447)	317,447	270,000
Disposal of investments in equity instruments designated at fair value through other comprehensive income	6(3)	-	-	-	240,906	(240,906)	-	-	-
Subsidiary cash capital reduction	6(22)	-	-	-	-	-	-	(170,000)	(170,000)
Cash acquisition of subsidiary's non-controlling equity interest	6(22)	-	45,694	-	-	-	45,694	(148,493)	(102,799)
Appropriations of 2023 earnings	6(21)	-	-	-	-	-	-	-	-
Legal reserve		-	-	92,176	(92,176)	-	-	-	-
Cash dividends		-	-	-	(302,739)	-	(302,739)	-	(302,739)
Stock dividends		269,102	-	-	(269,102)	-	-	-	-
Balance at December 31, 2024		$ 3,632,872	$ 4,354,546	$ 665,777	$ 1,769,410	$ -	$ 10,422,605	$ -	$ 10,422,605
Year ended December 31, 2025
Balance at January 1, 2025		$ 3,632,872	$ 4,354,546	$ 665,777	$ 1,769,410	$ -	$ 10,422,605	$ -	$ 10,422,605
Profit for the year		-	-	-	1,027,805	-	1,027,805	-	1,027,805
Other comprehensive income	6(23)	-	-	-	2,039	-	2,039	-	2,039
Total comprehensive income		-	-	-	1,029,844	-	1,029,844	-	1,029,844
Disposal of investments in equity instruments designated at fair value through other comprehensive income		-	-	-	306	-	306	-	306
Appropriations of 2024 earnings	6(21)	-	-	-	-	-	-	-	-
Legal reserve		-	-	90,966	(90,966)	-	-	-	-
Cash dividends		-	-	-	(399,616)	-	(399,616)	-	(399,616)
Stock dividends		72,657	-	-	(72,657)	-	-	-	-
Balance at December 31, 2025		$ 3,705,529	$ 4,354,546	$ 756,743	$ 2,236,321	$ -	$ 11,053,139	$ -	$ 11,053,139

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

FARGLORY FREE TRADE ZONE INVESTMENT HOLDING CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2025 AND 2024
(EXRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

	Notes	2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax		$ 1,212,382	$ 827,970
Adjustments
Adjustments to reconcile profit
Depreciation	6(29)	957,689	863,979
Amortization	6(29)	8,225	8,686
Impairment (gain) loss	12(2)	( 908 )	1,131
Net gain on financial assets at fair value through profit or loss	6(2)	( 689 )	( 12 )
Interest expense	6(28)	333,089	332,745
Interest income	6(25)	( 8,003 )	( 8,951 )
Dividend income	6(26)	-	( 31 )
Share of loss of associates and joint ventures accounted for under equity method	6(6)	( 1,477 )	( 820 )
Changes in operating assets and liabilities
Changes in operating assets
Financial assets at fair value through profit or loss		16,000	( 50,000 )
Notes receivable, net		1,462	1,433
Accounts receivable, net		( 46,280 )	( 70,372 )
Other receivables		( 13,575 )	( 3,876 )
Prepayments		( 5,583 )	2,773
Other current assets		( 435 )	( 795 )
Changes in operating liabilities
Notes payable		11,348	( 7,089 )
Notes payable - related parties		7	13
Other payables		110,498	2,834
Other payables - related parties		7	27
Other current liabilities		8,187	( 1,758 )
Other non-current liabilities		( 54,805 )	( 58,283 )
Cash inflow generated from operations		2,527,139	1,839,604
Interest received		8,003	8,951
Dividends received		-	31
Interest paid		( 331,427 )	( 332,092 )
Income tax paid		( 109,111 )	( 95,274 )
Net cash provided by operating activities		2,094,604	1,421,220

(Continued)

FARGLORY FREE TRADE ZONE INVESTMENT HOLDING CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2025 AND 2024
(EXRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

	Notes	2025	2024
CASH FLOWS FROM INVESTING ACTIVITIES
Decrease in financial assets at fair value through other comprehensive income	6(4)	$ 406	$ 290,367
Proceeds from disposal of financial assets at amortised cost		210,000	240,000
Acquisition of financial assets at amortised cost		-	( 350,000 )
Acquisition of property, plant and equipment	6(33)	( 422,912 )	( 358,352 )
Increase in refundable deposits		( 53 )	( 570 )
Increase in intangible assets		( 11,868 )	( 4,962 )
Acquisition of investment property	6(33)	( 706,757 )	( 1,852,909 )
Increase in other non-current assets		-	1,400
Acquisition of investments accounted for using the equity method	6(6)	-	( 27,000 )
Net cash used in investing activities		( 931,184 )	( 2,062,026 )
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in short-term loans		3,630,000	4,355,000
Decrease in short-term loans		( 3,290,000 )	( 4,175,000 )
Increase in short-term notes and bills payable		2,040,000	3,570,000
Decrease in short-term notes and bills payable		( 2,540,000 )	( 3,350,000 )
Proceeds from long-term debt		465,164	1,056,720
Repayments of long-term debt		( 729,962 )	( 412,508 )
Increase in guarantee deposits received		116,154	60,216
Decrease in guarantee deposits received		( 23,395 )	( 15,242 )
Redemption of lease liabilities	6(34)	( 93,477 )	( 89,420 )
Cash dividends paid	6(21)	( 399,616 )	( 302,739 )
Decrease in payables - related parties		-	( 230,000 )
Increase in payables - related parties		-	230,000
Acquisition of non-controlling interests in subsidiaries in cash	6(22)	-	( 102,799 )
Subsidiary capital increase	6(22)	-	270,000
Subsidiary capital reduction	6(22)	-	( 170,000 )
Net cash (used in) provided by financing activities		( 825,132 )	694,228
Increase in cash and cash equivalents		338,288	53,422
Cash and cash equivalents at beginning of year		520,331	466,909
Cash and cash equivalents at end of year		$ 858,619	$ 520,331

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

~14~

FARGLORY FREE TRADE ZONE INVESTMENT HOLDING CO., LTD. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

1. HISTORY AND ORGANIZATION

(1) Farglory Free Trade Zone Investment Holding Co., Ltd. (the “Company”) was incorporated in June 1991 as a company limited by shares under the provisions of the Company Act of the Republic of China (R.O.C.), and was transformed into an investment holding company in May 2006. The Company and subsidiaries (referred to herein as the “Group”) are primarily engaged in operating the air cargo, air container and cargo tray (de)vanning, (un)traying, (un)loading and export and import warehouse business and leasing plant and office and warehouse of Taoyuan Aviation Free Trade Port Zone.

(2) The shares of the Company had been traded on the Taipei Exchange since December 1999 and it had been listed on the Taiwan Stock Exchange since December 2004.

2. THE DATE OF AUTHORISATION FOR ISSUANCE OF THE FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORISATION

These consolidated financial statements were authorised for issuance by the Board of Directors on March 11, 2026.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRS®”) Accounting Standards that came into effect as endorsed by the Financial Supervisory Commission (“FSC”)

New standards, interpretations and amendments endorsed by the FSC and became effective from 2025 are as follows:

New Standards, Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IAS 21, ‘Lack of exchangeability’	January 1, 2025

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

(2) Effect of new issuances of or amendments to IFRS Accounting Standards as endorsed by the FSC but not yet adopted by the Group

New standards, interpretations and amendments endorsed by the FSC effective from 2026 are as follows:

New Standards, Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IFRS 9 and IFRS 7, ‘Amendments to the classification and measurement of financial instruments’	January 1, 2026
Amendments to IFRS 9 and IFRS 7, ‘Contracts referencing nature-dependent electricity’	January 1, 2026
IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendments to IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendment to IFRS 17, ‘Initial application of IFRS 17 and IFRS 9 - comparative information’	January 1, 2023
Annual Improvements to IFRS Accounting Standards—Volume 11	January 1, 2026

The above standards and interpretations have no significant impact to the Group's financial condition and financial performance based on the Group's assessment.

(3) IFRS Accounting Standards issued by IASB but not yet endorsed by the FSC

New standards, interpretations and amendments issued by IASB but not yet included in the IFRS Accounting Standards as endorsed by the FSC are as follows:

New Standards, Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between an investor and its associate or joint venture’	To be determined by International Accounting Standards Board
IFRS 18, ‘Presentation and disclosure in financial statements’	January 1, 2027 (Note)
IFRS 19, ‘Subsidiaries without public accountability: disclosures’	January 1, 2027
Amendments to IAS 21, ‘Translation to a Hyperinflationary Presentation Currency’	January 1, 2027

Note: The FSC has announced in a press release on September 25, 2025 that public companies will apply IFRS 18 starting from the fiscal year 2028. Additionally, entities can choose to adopt IFRS 18 earlier based on their requirements after the FSC endorses IFRS 18.

Except for the following, the above standards and interpretations have no significant impact to the Group's financial condition and financial performance based on the Group's assessment:

IFRS 18, 'Presentation and disclosure in financial statements'

IFRS 18, 'Presentation and disclosure in financial statements' replaces IAS 1. The standard introduces a defined structure of the statement of profit or loss, disclosure requirements related to management-defined performance measures, and enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes.

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4. SUMMARY OF MATERIAL ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

The consolidated financial statements of the Group have been prepared in accordance with the "Regulations Governing the Preparation of Financial Reports by Securities Issuers", International Financial Reporting Standards, International Accounting Standards, IFRIC® Interpretations, and SIC® Interpretations that came into effect as endorsed by the FSC (collectively referred herein as the "IFRSs").

(2) Basis of preparation

A. Except for the following items, the consolidated financial statements have been prepared under the historical cost convention:

(a) Financial assets at fair value through profit or loss.

(b) Financial assets at fair value through other comprehensive income.

(c) Defined benefit liabilities recognised based on the net amount of pension fund assets less present value of defined benefit obligation.

B. The preparation of financial statements in conformity with IFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.

(3) Basis of consolidation

A. Basis for preparation of consolidated financial statements:

(a) All subsidiaries are included in the Group's consolidated financial statements. Subsidiaries are all entities (including structured entities) controlled by the Group. The Group controls an entity when the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases when the Group loses control of the subsidiaries.

(b) Inter-company transactions, balances and unrealised gains or losses on transactions between companies within the Group are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Group.

(c) Profit or loss and each component of other comprehensive income are attributed to the owners of the parent and to the non-controlling interests. Total comprehensive income is attributed to the owners of the parent and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

(d) Changes in a parent's ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transactions with non-controlling interests) are accounted for as equity transactions, i.e. transactions with owners in their capacity as owners. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity.

(e) When the Group loses control of a subsidiary, the Group remeasures any investment retained in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial recognition of a financial asset or the cost on initial recognition of the associate or joint venture. Any difference between fair value and carrying amount is recognised in profit or loss. All amounts previously recognised in other comprehensive income in relation to the subsidiary are reclassified to profit or loss on the same basis as would be required if the related assets or liabilities were disposed of. That is, when the Group loses control of a subsidiary, all gains or losses previously recognised in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit or loss when the related assets or liabilities are disposed of.

B. Subsidiaries included in the consolidated financial statements:

Name of investor	Name of subsidiary	Main business activities	Ownership (%)		Description
			December 31, 2025	December 31, 2024
Farglory Free Trade Zone Investment Holding Co., Ltd.	Farglory Free Trade Zone Co., Ltd.	Warehousing and storage, Industrial factory buildings lease construction and development, Airfreight distribution	100	100
Farglory Free Trade Zone Investment Holding Co., Ltd.	Farglory Logistics Co., Ltd.	Warehousing and storage, Real estate rental and leasing, Cargoes Packaging	100	100	Notes 1, 2 and 3

Note 1: The Company did not subscribe to the capital increase of the subsidiary in proportion to its shareholding ratio. Refer to Note 6(22) for details.

Note 2: In August 2024, the subsidiary conducted a cash capital reduction at NT$10 per share. Refer to Note 6(22) for details.

Note 3: In October 2024, the Company acquired additional equity in the subsidiary. Refer to Note 6(22) for details.

C. Subsidiaries not included in the consolidated financial statements: None.

D. Adjustments for subsidiaries with different balance sheet dates: Not applicable.

E. Significant restrictions: None.

F. Subsidiaries that have non-controlling interests that are material to the Group: None.

(4) Foreign currency translation

Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The consolidated financial statements are presented in New Taiwan Dollars, which is the Company’s functional and the Group’s presentation currency.

A. Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognised in profit or loss in the period in which they arise.

B. Monetary assets and liabilities denominated in foreign currencies at the period end are re-translated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognised in profit or loss.

C. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in other comprehensive income. However, non-monetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.

D. All foreign exchange gains and losses are presented in the statement of comprehensive income within ‘other gains and losses’.

(5) Classification of current and non-current items

A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets:

(a) Assets arising from operating activities that are expected to be realised, or are intended to be sold or consumed within the normal operating cycle;

(b) Assets held mainly for trading purposes;

(d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities more than twelve months after the balance sheet date.

B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities:

(a) Liabilities that are expected to be settled within the normal operating cycle;

(b) Liabilities arising mainly from trading activities;

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(c) Liabilities that are to be settled within twelve months from the balance sheet date;
(d) Liabilities for which the repayment date cannot be extended unconditionally to more than twelve months after the balance sheet date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

(6) Financial assets at fair value through profit or loss

A. Financial assets at fair value through profit or loss are financial assets that are not measured at amortised cost or fair value through other comprehensive income.
B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognised and derecognised using settlement date accounting.
C. At initial recognition, the Group measures the financial assets at fair value and recognises the transaction costs in profit or loss. The Group subsequently measures the financial assets at fair value, and recognises the gain or loss in profit or loss.
D. The Group recognises the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.

(7) Financial assets at fair value through other comprehensive income

A. Financial assets at fair value through other comprehensive income comprise equity securities which are not held for trading, and for which the Group has made an irrevocable election at initial recognition to recognise changes in fair value in other comprehensive income.
B. On a regular way purchase or sale basis, financial assets at fair value through other comprehensive income are recognised and derecognised using settlement date accounting.
C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs. The Group subsequently measures the financial assets at fair value, the changes in fair value of equity investments that were recognised in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment. Dividends are recognised as revenue when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.

(8) Financial assets at amortised cost

A. Financial assets at amortised cost are those that meet all of the following criteria:

(a) The objective of the Group's business model is achieved by collecting contractual cash flows.
(b) The assets' contractual cash flows represent solely payments of principal and interest.

B. On a regular way purchase or sale basis, financial assets at amortised cost are recognised and derecognised using settlement date accounting.

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C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs. Interest income from these financial assets is included in finance income using the effective interest method. A gain or loss is recognised in profit or loss when the asset is derecognised or impaired.

D. The Group’s time deposits which do not fall under cash equivalents are those with a short maturity period and are measured at initial investment amount as the effect of discounting is immaterial.

(9) Accounts and notes receivable

A. Accounts and notes receivable entitle the Group a legal right to receive consideration in exchange for transferred goods or rendered services.

B. The short-term accounts and notes receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(10) Impairment of financial assets

For debt instruments measured at financial assets at amortised cost, at each reporting date, the Group recognises the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognises the impairment provision for the lifetime expected credit losses (ECLs) if such credit risk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand, for accounts receivable or contract assets that do not contain a significant financing component, the Group recognises the impairment provision for lifetime ECLs.

(11) Derecognition of financial assets

The Group derecognises a financial asset when the contractual rights to receive the cash flows from the financial asset expire.

(12) Leasing arrangements (lessor)—operating leases

Lease income from an operating lease (net of any incentives given to the lessee) is recognised in profit or loss on a straight-line basis over the lease term.

(13) Investments accounted for using equity method / associates

A. Associates are all entities over which the Group has significant influence but no control. Investments in associates are accounted for using the equity method and are initially recognised at cost.

B. The Group’s share of its associates’ post-acquisition profits or losses is recognised in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income. When the Group’s share of losses in an associate equals or exceeds its interest in the associate together with any other unsecured receivables, the Group does not recognise further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.

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C. When changes in an associate’s equity do not arise from profit or loss or other comprehensive income of the associate and such changes do not affect the Group’s ownership percentage of the associate, the Group recognises the Group’s share of change in equity of the associate in ‘capital surplus’ in proportion to its ownership.

D. Unrealised gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been adjusted where necessary to ensure consistency with the policies adopted by the Group.

E. When the Group disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate, are reclassified to profit or loss, on the same basis as would be required if the relevant assets or liabilities were disposed of. If it retains significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately in accordance with the aforementioned approach.

(14) Property, plant and equipment

A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalised.

B. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

C. Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.

D. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year-end. If expectations for the assets’ residual values and useful lives differ from previous estimates or the patterns of consumption of the assets’ future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’, from the date of the change. The estimated useful lives of property, plant and equipment are as follows:

Buildings and structures (including accessory equipment)	3 ~ 47 years
Warehousing equipment	3 ~ 20 years
Transportation equipment	5 ~ 10 years

Office equipment

1 \sim 11
years

(15) Leasing arrangements (lessee)—right-of-use assets / lease liabilities

A. Leases are recognised as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Group. For short-term leases or leases of low-value assets, lease payments are recognised as an expense on a straight-line basis over the lease term.

B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate.

Lease payments are comprised of the following:

(a) Fixed payments, less any lease incentives receivable; and
(b) Variable lease payments that depend on an index or a rate.

The Group subsequently measures the lease liability at amortised cost using the interest method and recognises interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognised as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

C. At the commencement date, the right-of-use asset is stated at cost comprising the following:

(a) The amount of the initial measurement of lease liability; and
(b) Any lease payments made at or before the commencement date.

The right-of-use asset is measured subsequently using the cost model and is depreciated from the commencement date to the earlier of the end of the asset’s useful life or the end of the lease term. When the lease liability is remeasured, the amount of remeasurement is recognised as an adjustment to the right-of-use asset.

(16) Investment property

An investment property is stated initially at its cost and measured subsequently using the cost model. Except for land, investment property is depreciated on a straight-line basis over its estimated useful life of 3 \sim 47 years.

(17) Intangible assets

Computer software is stated at cost and amortised on a straight-line basis over its estimated useful life of 1 to 5 years.

(18) Impairment of non-financial assets

The Group assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell or value in use. When the circumstances or reasons for recognising impairment loss for an asset in prior years no longer exist or diminish, the impairment

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loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortised historical cost would have been if the impairment had not been recognised.

(19) Borrowings

Borrowings comprise long-term and short-term bank borrowings and other short-term loans. Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in profit or loss over the period of the borrowings using the effective interest method.

(20) Notes and accounts payable

A. Accounts payable are liabilities for purchases of raw materials, goods or services and notes payable are those resulting from operating and non-operating activities.

B. The short-term notes and accounts payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(21) Derecognition of financial liabilities

A financial liability is derecognised when the obligation specified in the contract is either discharged or cancelled or expires.

(22) Offsetting financial instruments

Financial assets and liabilities are offset and reported in the net amount in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously.

(23) Employee benefits

A. Short-term employee benefits

Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period and should be recognised as expense in that period when the employees render service.

B. Pensions

(a) Defined contribution plans

For defined contribution plans, the contributions are recognised as pension expense when they are due on an accrual basis. Prepaid contributions are recognised as an asset to the extent of a cash refund or a reduction in the future payments.

(b) Defined benefit plans

i. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Group in current period or prior periods. The liability recognised in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is

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calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of government bonds (at the balance sheet date) of a currency and term consistent with the currency and term of the employment benefit obligations.

ii. Remeasurements arising on defined benefit plans are recognised in other comprehensive income in the period in which they arise and are recorded as retained earnings.

C. Employees' compensation and directors' and supervisors' remuneration

Employees' compensation and directors' and supervisors' remuneration are recognised as expense and liability, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates. If employee compensation is paid by shares, the Group calculates the number of shares based on the closing price at the previous day of the board meeting resolution.

(24) Employee share-based payment

A. For the equity-settled share-based payment arrangements, the employee services received are measured at the fair value of the equity instruments granted at the grant date, and are recognised as compensation cost over the vesting period, with a corresponding adjustment to equity. The fair value of the equity instruments granted shall reflect the impact of market vesting conditions and non-vesting conditions. Compensation cost is subject to adjustment based on the service conditions that are expected to be satisfied and the estimates of the number of equity instruments that are expected to vest under the non-market vesting conditions at each balance sheet date. Ultimately, the amount of compensation cost recognised is based on the number of equity instruments that eventually vest.

B. For the cash-settled share-based payment arrangements, the employee services received and the liability incurred are measured at fair value of the liability to pay for those services, and are recognised as compensation cost and liability over the vesting period. The fair value of the liability shall be remeasured at each balance sheet date until settled at the settlement date, with any changes in fair value recognised in profit or loss.

(25) Income tax

A. The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or items recognised directly in equity, in which cases the tax is recognised in other comprehensive income or equity.

B. The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An

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additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.

C. Deferred tax is recognised, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. However, the deferred tax is not accounted for if it arises from initial recognition of goodwill or of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred tax is provided on temporary differences arising on investments in subsidiaries, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is determined using tax rates and laws that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.

D. Deferred tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. At each balance sheet date, unrecognised and recognised deferred tax assets are reassessed.

E. A deferred tax asset shall be recognised for the carryforward of unused tax credits resulting from acquisitions of equipment or technology, research and development expenditures and equity investments to the extent that it is possible that future taxable profit will be available against which the unused tax credits can be utilised.

(26) Dividends

Dividends are recorded in the Company's financial statements in the period in which they are resolved by the Company's shareholders. Cash dividends are recorded as liabilities.

(27) Revenue recognition

A. Revenue from contracts with customers

The Group provides warehousing, tally, packaging and other related services. Revenue is recognised in the accounting period in which the goods are transferred and the services are rendered.

B. For detailed information on rental revenue, please refer to Note 4(12).

(28) Operating segments

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The Group's chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors that makes strategic decisions.

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5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY

The preparation of these consolidated financial statements requires management to make critical judgements in applying the Group's accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. Such assumptions and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year; and the related information is addressed below:

(1) Critical judgements in applying the Group's accounting policies

Except for the accounting estimates (detailed in (2) below), management does not make any judgement that significantly affect the recognised amounts in the consolidated financial statements when applying the Group's accounting policies.

(2) Critical accounting estimates and assumptions

A. Impairment assessment of tangible assets

The Group assesses impairment based on its subjective judgement and determines the separate cash flows of a specific group of assets, useful lives of assets and the future possible income and expenses arising from the assets depending on how assets are utilised and industrial characteristics. Any changes of economic circumstances or estimates due to the change of Group strategy might cause material impairment on assets in the future.

B. Realisability of deferred tax assets

Deferred tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences can be utilised. Assessment of the realisability of deferred tax assets involves critical accounting judgements and estimates of the management, including the assumptions of expected future sales revenue growth rate and profit rate, available tax credits, tax planning, etc. Any variations in global economic environment, industrial environment, and laws and regulations might cause material adjustments to deferred tax assets.

As of December 31, 2025, the Group recognised deferred tax assets amounting to $289,936.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

	December 31, 2025	December 31, 2024
Cash on hand and revolving funds	$ 659	$ 947
Checking accounts and demand deposits	857,960	519,384
	$ 858,619	$ 520,331

A. The Group transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.

B. The Group has borrowings from banks. In accordance with the loan agreements, certain bank deposits amounting to $246,000 and $306,000 as at December 31, 2025 and 2024, respectively, were restricted and reclassified to financial assets at amortised cost-current and financial assets at amortised cost-non-current. Please refer to Notes 6(4) and 8 for details.

(2) Financial assets at fair value through profit or loss

	December 31, 2025	December 31, 2024
Current items:
Financial assets mandatorily measured at fair value through profit or loss
Money market funds	$ 34,164	$ 50,000
Valuation adjustment	537	12
	$ 34,701	$ 50,012

A. For the years ended December 31, 2025 and 2024, amounts recognised in profit in relation to financial assets at fair value through profit or loss were $689 and $12, respectively.
B. The Group has no financial assets at fair value through profit or loss pledged to others as collateral.

(3) Financial assets at fair value through other comprehensive income

Items	December 31, 2025	December 31, 2024
Non-current items
Unlisted stocks	$ -	$ 100

A. The Group has elected to classify equity investments that are considered to be strategic investments as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $0 and $100 as at December 31, 2025 and 2024, respectively.
B. Aiming to satisfy the company development and resource allocation planning, the Company sold $290,367, representing 0.61% equity interest in FARGLORY LAND DEVELOPMENT CO., LTD. at fair value which resulted in cumulative gain on disposal of $240,906 during 2024.
C. Amounts recognised in profit or loss and other comprehensive income in relation to the financial assets at fair value through other comprehensive income are listed below:

	Years ended December 31,
	2025	2024
Equity instruments at fair value through other comprehensive income
Fair value change recognised in other comprehensive income	$ -	$ 21,104
Cumulative gains (losses) reclassified to retained earnings due to derecognition	$ -	$ 240,906

D. The Group has no financial assets at fair value through other comprehensive income pledged to others as collateral.

(4) Financial assets at amortised cost

Items	December 31, 2025	December 31, 2024
Current items:
Time deposits	$ 200,000	$ 350,000
Restricted demand deposits	30,000	30,000
	$ 230,000	$ 380,000
Non-current items:
Time deposits	$ 216,000	$ 216,000
Restricted demand deposits	-	60,000
	$ 216,000	$ 276,000

A. Amounts recognised in profit or loss in relation to financial assets at amortised cost are listed below:

	Years ended December 31,
	2025	2024
Interest income	$ 3,594	$ 1,767

B. As at December 31, 2025 and 2024, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at amortised cost held by the Group were equal to the carrying value.

C. Details of the Group’s financial assets at amortised cost pledged to others as collateral are provided in Note 8.

D. Information relating to credit risk of financial assets at amortised cost is provided in Note 12(2). The counterparties of the Group’s investments in certificates of deposits are financial institutions with high credit quality, so the Group expects that the probability of counterparty default is remote.

(5) Notes and accounts receivable

	December 31, 2025	December 31, 2024
Notes receivable	$ 3,256	$ 4,718
Less: Allowance for uncollectible accounts	(14)	(10)
	$ 3,242	$ 4,708
Accounts receivable - revenue from contracts with customers	$ 229,240	$ 182,406
Accounts receivable - rental revenue	129,070	129,826
Less: Allowance for uncollectible accounts	(1,183)	(2,095)
	$ 357,127	$ 310,137

A. The ageing analysis of accounts receivable and notes receivable is as follows:

	December 31, 2025		December 31, 2024
	Accounts receivable	Notes receivable	Accounts receivable	Notes receivable
Not past due	$ 357,371	$ 3,256	$ 305,341	$ 4,718
Up to 30 days	927	-	4,538	-
31 to 60 days	12	-	2,242	-
61 to 90 days	-	-	111	-
Over 91 days	-	-	-	-
	$ 358,310	$ 3,256	$ 312,232	$ 4,718

The above ageing analysis was based on past due date.

B. As of December 31, 2025, December 31, 2024 and January 1, 2024, the balances of receivables (including related parties) from contracts with customers amounted to $229,240, $182,406 and $164,081, respectively.
C. The Group does not hold financial assets as security for accounts receivable and notes receivable.
D. Information relating to credit risk of accounts receivable and notes receivable is provided in Note 12(2).

(6) Investments accounted for using equity method

	Years ended December 31,
	2025	2024
At January 1	$ 77,622	$ 49,802
Reclassifications during the year	-	27,000
Share of profit or loss of investments accounted for using equity method	1,477	820
At December 31	$ 79,099	$ 77,622

A. The basic information of the associate that is material to the Group is as follows:

Company name	Principal place of business	Shareholding ratio		Nature of relationship	Method of measurement
		December 31, 2025	December 31, 2024
Innotech Logistics Co., Ltd.	Taiwan	9.625%	9.625%	The Company obtained a board seat in May 2022.	Equity method

B. The balance of the above investment accounted for using the equity method as of December 31, 2025 and 2024 and the share of profit or loss of investments for the years ended December 31, 2025 and 2024 were accounted for using the equity method based on the financial statements of the investee audited by other independent auditors.

(7) Property, plant and equipment

	2025
	Buildings and structures	Warehousing equipment	Transportation equipment	Office equipment	Construction in progress	Total
At January 1
Cost	$ 2,843,172	$ 1,386,704	$ 187,119	$ 268,300	$ 572,346	$ 5,257,641
Accumulated depreciation	( 1,064,507)	( 954,665)	( 81,381)	( 99,398)	-	( 2,199,951)
	$ 1,778,665	$ 432,039	$ 105,738	$ 168,902	$ 572,346	$ 3,057,690
Opening net book amount as at January 1	$ 1,778,665	$ 432,039	$ 105,738	$ 168,902	$ 572,346	$ 3,057,690
Additions	18,474	38,426	14,955	51,963	246,826	370,644
Transfers	70,127	458,868	-	1,503	( 530,498)	-
Depreciation charge	( 99,236)	( 49,223)	( 16,836)	( 58,276)	-	( 223,571)
Closing net book amount as at December 31	$ 1,768,030	$ 880,110	$ 103,857	$ 164,092	$ 288,674	$ 3,204,763
At December 31
Cost	$ 2,929,227	$ 1,858,562	$ 202,074	$ 308,876	$ 288,674	$ 5,587,413
Accumulated depreciation	( 1,161,197)	( 978,452)	( 98,217)	( 144,784)	-	( 2,382,650)
	$ 1,768,030	$ 880,110	$ 103,857	$ 164,092	$ 288,674	$ 3,204,763
	2024
	Buildings and structures	Warehousing equipment	Transportation equipment	Office equipment	Construction in progress	Total
At January 1
Cost	$ 2,742,281	$ 1,090,911	$ 187,509	$ 166,980	$ 797,778	$ 4,985,459
Accumulated depreciation	( 970,517)	( 927,918)	( 66,793)	( 53,563)	-	( 2,018,791)
	$ 1,771,764	$ 162,993	$ 120,716	$ 113,417	$ 797,778	$ 2,966,668
Opening net book amount as at January 1	$ 1,771,764	$ 162,993	$ 120,716	$ 113,417	$ 797,778	$ 2,966,668
Additions	27,419	7,946	2,272	59,203	185,698	282,538
Reclassifications (Note)	-	-	-	-	( 5,631)	( 5,631)
Transfers	73,472	289,911	-	42,116	( 405,499)	-
Depreciation charge	( 93,990)	( 28,811)	( 17,250)	( 45,834)	-	( 185,885)
Closing net book amount as at December 31	$ 1,778,665	$ 432,039	$ 105,738	$ 168,902	$ 572,346	$ 3,057,690
At December 31
Cost	$ 2,843,172	$ 1,386,704	$ 187,119	$ 268,300	$ 572,346	$ 5,257,641
Accumulated depreciation	( 1,064,507)	( 954,665)	( 81,381)	( 99,398)	-	( 2,199,951)
	$ 1,778,665	$ 432,039	$ 105,738	$ 168,902	$ 572,346	$ 3,057,690

Note: Reclassifications pertain to transfers to investment property.
Information about the property, plant and equipment that were pledged to others as collateral is provided in Note 8.

(8) Leasing arrangements—lessee

A. The Group leases various assets including land (including royalties) and other equipment. Rental contracts are typically made for periods of 3 to 50 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes.

B. The movements of changes in the carrying amount of right-of-use assets are as follows:

	Land (including royalties)	Other equipment	Total
Cost
Balance at January 1, 2025	$ 3,738,458	$ 8,856	$ 3,747,314
Increases - additions	-	803	803
Decreases - variable lease payments (Note)	103,933	-	103,933
Disposal	( 12,995)	-	( 12,995)
Balance at December 31, 2025	$ 3,829,396	$ 9,659	$ 3,839,055
Accumulated depreciation
Balance at January 1, 2025	$ 612,892	$ 4,375	$ 617,267
Depreciation charge	117,827	2,026	119,853
Disposal	( 12,995)	-	( 12,995)
Balance at December 31, 2025	$ 717,724	$ 6,401	$ 724,125
Net amount at December 31, 2025	$ 3,111,672	$ 3,258	$ 3,114,930
	Land (including royalties)	Other equipment	Total
Cost
Balance at January 1, 2024	$ 3,385,632	$ 10,865	$ 3,396,497
Increases - additions	-	1,307	1,307
Decreases - variable lease payments (Note)	352,826	-	352,826
Disposal	-	( 3,316)	( 3,316)
Balance at December 31, 2024	$ 3,738,458	$ 8,856	$ 3,747,314
Accumulated depreciation
Balance at January 1, 2024	$ 498,722	$ 5,132	$ 503,854
Depreciation charge	114,170	2,559	116,729
Disposal	-	( 3,316)	( 3,316)
Balance at December 31, 2024	$ 612,892	$ 4,375	$ 617,267
Net amount at December 31, 2024	$ 3,125,566	$ 4,481	$ 3,130,047

Note: The land and royalty rent will be adjusted based on the announced land price and annual growth rate of freight volume. Please refer to Note 9(2) for details.

C. The information on profit and loss accounts relating to lease contracts is as follows:

	Years ended December 31,
	2025	2024
Items affecting profit or loss
Interest expense on lease liabilities	$ 72,527	$ 72,264
Expense on short-term lease contracts	8,411	8,288
Expense on leases of low-value assets	1,068	1,365

D. For the years ended December 31, 2025 and 2024, the Group's total cash outflow for leases were $175,484 and $171,336, respectively.

(9) Leasing arrangements – lessor

A. The Group leases various assets including land and buildings. Rental contracts are typically made for periods of 1 to 20 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. To protect the lessor's ownership rights on the leased assets, leased assets may not be used as security for borrowing purposes, or a residual value guarantee was required.

E. For the years ended December 31, 2025 and 2024, the Group recognised rent income in the amounts of $1,269,232 and $1,100,015, respectively, based on the operating lease agreement, which does not include variable lease payments.

C. The maturity analysis of the lease payments under the operating leases is as follows:

	December 31, 2025		December 31, 2024
2026	$ 1,542,391	2025	$ 882,058
2027	1,349,308	2026	718,164
2028	1,144,306	2027	611,412
2029	883,885	2028	559,086
2030	654,313	2029	470,605
2031 and onwards	1,685,896	2030 and onwards	1,973,830
	$ 7,260,099		$ 5,215,155

(10) Investment property

	2025
	Land	Buildings and structures	Construction in progress	Total
At January 1
Cost	$ 671,960	$ 18,456,490	$ 2,540,460	$ 21,668,910
Accumulated depreciation	-	( 3,106,076)	-	( 3,106,076)
	$ 671,960	$ 15,350,414	$ 2,540,460	$ 18,562,834
Opening net book amount as at January 1	$ 671,960	$ 15,350,414	$ 2,540,460	$ 18,562,834
Additions	-	712,527	12	712,539
Transfers	-	2,540,460	( 2,540,460)	-
Depreciation charge	-	( 614,265)	-	( 614,265)
Closing net book amount as at December 31	$ 671,960	$ 17,989,136	$ 12	$ 18,661,108
At December 31
Cost	$ 671,960	$ 21,705,288	$ 12	$ 22,377,260
Accumulated depreciation	-	( 3,716,152)	-	( 3,716,152)
	$ 671,960	$ 17,989,136	$ 12	$ 18,661,108
	2024
	Land	Buildings and structures	Construction in progress	Total
At January 1
Cost	$ 671,960	$ 17,496,059	$ 1,727,183	$ 19,895,202
Accumulated depreciation	-	( 2,544,715)	-	( 2,544,715)
	$ 671,960	$ 14,951,344	$ 1,727,183	$ 17,350,487
Opening net book amount as at January 1	$ 671,960	$ 14,951,344	$ 1,727,183	$ 17,350,487
Additions	-	292,005	1,476,074	1,768,079
Reclassifications (Note)	-	5,631	-	5,631
Transfers	-	662,797	( 662,797)	-
Depreciation charge	-	( 561,363)	-	( 561,363)
Closing net book amount as at December 31	$ 671,960	$ 15,350,414	$ 2,540,460	$ 18,562,834
At December 31
Cost	$ 671,960	$ 18,456,490	$ 2,540,460	$ 21,668,910
Accumulated depreciation	-	( 3,106,076)	-	( 3,106,076)
	$ 671,960	$ 15,350,414	$ 2,540,460	$ 18,562,834

Note: The reclassification in this period is the transfer of construction in progress of real estate, plants and equipment to investment in real estate.

A. Rental income from investment property and direct operating expenses arising from investment property are shown below:

	Years ended December 31,
	2025	2024
Rental income from investment property	$ 1,269,232	$ 1,100,015
Direct operating expenses arising from the investment property that generated rental income during the year	$ 878,943	$ 773,740

B. The fair value of the investment property held by the Group as at December 31, 2025 and 2024 were $20,866,660 and $17,551,255, respectively, which was valued by independent valuers and evaluation results of nearby transaction land price data. The Group evaluated land with market comparison approach and evaluated buildings with cost approach using the rebuild cost or recoverable cost on the pricing date less the accumulated depreciation or other deductible part to calculate the price of subject.

C. The fair value valuation of construction in progress adopted cost approach which was based on the rebuild cost or recoverable cost as a reference of fair value. As the accounting date was near the valuation date, the carrying amounts of $12 and $2,540,460 on December 31, 2025 and 2024, respectively were approximate to their fair values.

D. Amount of borrowing costs capitalised as part of investment property and the range of the interest rates for such capitalisation are as follows:

	Years ended December 31,
	2025	2024
Amount capitalised	$ 44,574	$ 25,289
Interest rates for capitalisation	2.54%	2.54%

E. Information about the investment property that was pledged to others as collateral is provided in Note 8.

(11) Other non-current assets

	December 31, 2025	December 31, 2024
Other assets - Agricultural land (Note)	$ 21,710	$ 21,710
Guarantee deposits paid	1,641	1,588
Others	2,517	3,576
	$ 25,868	$ 26,874

Note: The subsidiary, Farglory Logistics Co., Ltd., entered into a contract with a related party, Ms. Chao, Chiu-Hsiang, for the acquisition of land located in Haihu Little Sec., Keng Zikou Sec., Lu Zhu Township, Taoyuan County for the use of connecting warehouse base and surrounding roads, at a total price of $21,710. As the land is currently classified as an agricultural land and cannot be registered under the name of the subsidiary, the cost of land

was temporarily recognised as “other non-current assets” and the land was pledged to banks as collateral for long-term borrowings.

(12) Short-term borrowings

Type of borrowings	December 31, 2025	December 31, 2024
Bank borrowings
Unsecured borrowings - Bank of Taiwan	$ 250,000	$ 250,000
Unsecured borrowings - Taishin International Bank	-	50,000
Unsecured borrowings - Taipei Fubon Bank	300,000	300,000
Unsecured borrowings - First Commercial Bank	300,000	300,000
Unsecured borrowings - Bank of Panshin	-	80,000
Unsecured borrowings - CTBC Bank Co., Ltd	100,000	-
Unsecured borrowings - Taiwan Cooperative Bank	200,000	-
Unsecured borrowings - KGI Bank	100,000	-
Taiwan Business Bank secured borrowings	100,000	100,000
Taiwan Shin Kong Commercial Bank secured borrowings	100,000	30,000
	$ 1,450,000	$ 1,110,000
Interest rate range	2.00%~2.31%	2.00%~2.4067%

Information about the short-term borrowings that were pledged to others as collateral is provided in Notes 7(3) and 8.

(13) Short-term notes and bills payable

December 31, 2025
Type	Guarantee agency	Expiry date	Interest rate	Amount	Collateral
Commercial paper	China Bills	2026.02.26	2.070%	$ 100,000	Note
Less: Discount on short-term notes and bills payable				( 318)
				$ 99,682
December 31, 2024
---	---	---	---	---	---
Type	Guarantee agency	Expiry date	Interest rate	Amount	Collateral
Commercial paper	Dah Chung Bills	2025.01.20	2.088%	$ 200,000	Note
	China Bills	2025.01.20	2.088%	100,000	"
	Ta Ching Bills	2025.01.07	2.088%	100,000	"
	International Bills	2025.01.07	2.088%	100,000	"
	Cooperative Bills	2025.01.07	2.088%	100,000	"
				600,000
Less: Discount on short-term notes and bills payable				( 429)
				$ 599,571

Note: Information about the short-term notes and bills payable that were pledged to others as collateral is provided in Note 7(3).

(14) Other payables

	December 31, 2025	December 31, 2024
Wages and salaries payable	$ 263,181	$ 196,293
Payables for machinery and equipment	22,205	29,431
Construction retainage received	4,552	10,451
Service fees payable	18,156	16,701
Insurance premiums payable	10,401	9,442
Tax payable	54,282	26,002
Others	80,660	66,959
	$ 453,437	$ 355,279

(15) Other current liabilities

	December 31, 2025	December 31, 2024
Current portion of long-term borrowings	$ 36,501	$ 37,805
Others	25,989	16,903
	$ 62,490	$ 54,708

(16) Long-term borrowings

Type of borrowings	Borrowing period and repayment term	Interest rate range	Collateral	December 31, 2025	December 31, 2024
Long-term bank borrowings
Secured borrowings
Mega Bank and other banks syndicated loan	The date of expiration of two years from the date of first use is the date of the first installment of the credit line A. Subsequent installments of $100,000 will be amortized every six months, and the remaining principal will be paid off in full in the final installment.	2.6684%	Building and warehousing equipment	$ 390,000	$ 590,000

Type of borrowings	Borrowing period and repayment term	Interest rate range	Collateral	December 31, 2025	December 31, 2024
Mega Bank	Third work date of the following month is the date of interest payment, and the interest is paid monthly. However, the interest of latest period shall be repaid together with the principal.	2.7643%	Building and time deposits	$ 2,680,597	$ 3,001,200
First Bank	Interest is payable monthly on the 5th of every month, after the grace period, the principal is repayable quarterly in 52 equal installments.	2.6600%	Building	846,154	880,000
Taiwan Cooperative Bank	Interest is paid monthly, starting from the third year, every six months as an installment. The principal is repaid in installments of $58,500 for the 1st to 29th installment, and the balance is due upon final installment.	2.7280%	Building and demand deposits	1,908,500	1,908,500
Taiwan Cooperative Bank	Interest is paid monthly, starting from the second year, every six months as an installment. The principal is repaid in installments of $16,960 for the 1st to 11th installment, and the balance is due upon final installment.	2.6780%	Building	161,120	195,040

~37~

Type of borrowings	Borrowing period and repayment term	Interest rate range	Collateral	December 31, 2025	December 31, 2024
Land Bank of Taiwan	Starting from the actual date of disbursement, the borrower will make monthly amortized payment of 70% principal and interest calculated by annuity method. 30% of the principal is payable in full upon maturity date.	2.6300%	Building	$ 807,355	$ 840,054
Land Bank of Taiwan	Starting from the actual date of disbursement, interest will be paid monthly for the first two years. From the third year onwards, 60% of the principal will be amortized evenly according to the annuity method. The remaining 40% of the principal is payable in full upon maturity.	2.5400%~ 2.5500%	Building and demand deposits	2,264,990	1,802,640
Unsecured borrowing:
Taichung Commercial Bank	The interest was repayable monthly while the principal was repayable quarterly in the amount of $5,000 and the remaining amount is payable upon maturity.	2.6800%	-	75,000	95,000
Taiwan Cooperative Bank	Interest is paid monthly, starting from the second year, every six months as an installment. The principal is repaid in installments of $3,040 for the 1st to 11th installment, and the balance is due upon financial installment.	2.6780%	-	28,880	34,960

~38~

Type of borrowings	Borrowing period and repayment term	Interest rate range	Collateral	December 31, 2025	December 31, 2024
Shanghai Commercial and Savings Bank	The interest was repayable monthly, and the grace period for the principal was 2 years, after the grace period, the principal was repayable quarterly in the amount of $20,000 thousand, and the remaining amount is payable in full upon maturity.	2.300%	-	$ 200,000	$ 280,000
				9,362,596	9,627,394
Less: Current portion (shown as ‘other current liabilities’)				( 933,864)	( 722,073)
				$ 8,428,732	$ 8,905,321

A. The details of the undrawn loans of the Group are as follows:

	December 31, 2025	December 31, 2024
Floating rate
Expires within one year	$ 3,360,000	$ 2,560,000
Expires more than one year	560,000	1,036,560
	$ 3,920,000	$ 3,596,560

B. In April 2011, the subsidiary, Farglory Free Trade Zone Co., Ltd., entered into a syndicated facility agreement with Mega Bank as the management bank and other banks. The total syndicated facility was $3,200,000, starting from August 2011, and the loan was repaid in 28 quarterly installments. The syndicated facility agreement was renewed in April 2023, with a total syndicated facility of $2,120,000. The first drawdown was in May 2023, and was used to fully pay the outstanding balance of the syndicated borrowing of April 2018.

C. Under the syndicated facility agreement which the subsidiary, Farglory Free Trade Zone Co., Ltd., entered into with syndicate banks in April 2023, Farglory Free Trade Zone Co., Ltd., has committed to maintain the following financial ratios for the duration of the syndicated loan facility or until the loan is fully repaid:

(a) Liability ratio (Liability dividend net value) maintain below 200%.

(b) Interest coverage ratio ((Profit before income tax plus depreciation expense plus amortization expense plus interest expense) divided by interest expense)) must be 2 since 2018.

(c) If aforementioned financial ratios cannot be maintained, starting from May 1 of the following year to the date that Mega Bank receives the reports or documents which indicates that the aforementioned financial ratios are met from auditors, compensation shall be paid monthly

according to the annual rate of 0.1% of the unpaid balance of principal (including guarantee).

	December 31, 2025	December 31, 2024
Total assets	$ 15,827,546	$ 16,146,862
Total net value	10,111,398	9,221,416
Liability ratio	157%	175%
	Years ended December 31,
	2025	2024
Profit before income tax	$ 1,180,141	$ 784,909
Depreciation charge	939,758	846,254
Amortization charge	8,225	8,686
Interest expense	329,597	327,953
	$ 2,457,721	$ 1,967,802
Interest expense	$ 329,597	$ 327,953
Interest coverage ratio	7.46	6.00

The financial ratios derived from the financial statements of the subsidiary, Farglory Free Trade Zone Co., Ltd. for the years ended December 31, 2025 and 2024 meet the requirements specified in the syndicated loan agreement.

D. Under the syndicated facility agreement, the subsidiary, Farglory Free Trade Zone Co., Ltd., shall provide buildings which were built based on the "Taoyuan Air-Cargo Parks Constructions and Management", accessory equipment and machinery and equipment purchased as first order maximum mortgage right to the management bank as collaterals for aforementioned facility agreement. Further, for the duration of the facility agreement, the balance of payments on behalf of the subsidiary, Farglory Free Trade Zone Co., Ltd., shall not be lower than $230,000 and shall not decrease except when transferred as increase in capital. Farglory Free Trade Zone Co., Ltd. shall also set a special account with the management bank, whereby the quarterly average balance of deposits in the special account shall be maintained at above $50,000 as of December 31, 2025 and 2024 and set as collateral to the management bank. Please refer to Note 8 for details.

E. In December 2019, the subsidiary, Farglory Free Trade Zone Co., Ltd., entered into a credit contract for the credit facility of $3,000,000. Under the credit contract, shall provide C, D, E and F building of second stage plant in the Value-add park and their accessory equipment as first order maximum mortgage right to the management bank and have the professional appraisal institutions which was recognised by management bank to appraise property collaterals every year. During the term of the credit facility, the amount of shareholder loans from the subsidiary, Farglory Free Trade Zone Co., Ltd., account shall not be less than $230,000. Except for conversion into paid-in capital, the amount shall not be reduced. Additionally, the subsidiary, Farglory Free Trade Zone Co., Ltd., shall pledge a fixed deposit certificate of no less than $60,000 to the managing bank. In February 2022, a supplemental agreement was signed. Except for an increase in the credit limit to $3,600,000, all other terms remain the same as stated above.

F. Under the credit contract, the subsidiary, Farglory Free Trade Zone Co., Ltd., shall maintain the same financial ratios as the aforementioned syndicated facility agreement for the duration of the credit contract or until the liability under the credit contract is fully repaid.

G. In May 2021, the subsidiary, Farglory Free Trade Zone Co., Ltd., entered into a credit contract with Land Bank for a credit facility of $954,000. Under the credit contract, shall provide the logistics center as collateral and complete the registration of ownership. The subsidiary shall grant the first mortgage right to Land Bank based on the loan amount plus 20%.

H. In February 2020, the subsidiary, Farglory Free Trade Zone Co., Ltd., entered into a credit contract with First Commercial Bank for a credit facility of $880,000. Under the credit contract, shall provide phase II air cargo terminal as collateral and complete the registration of ownership. Within six months after the license to use has been issued by the construction authority and the registration has been completed, the subsidiary shall grant the first mortgage right to First Commercial Bank.

I. The subsidiary, Farglory Free Trade Zone Co., Ltd., signed a credit agreement with Taiwan Cooperative Bank in July 2020 with a credit limit of $1,500,000. According to the credit agreement, a cold chain logistics warehouse was provided as collateral, and a first-priority mortgage equal to 120% of the loan amount was granted to Taiwan Cooperative Bank. In February 2022, a supplemental agreement was signed to increase the credit limit to $1,950,000; all other terms remained the same as stated above. In December 2022, another supplemental agreement was signed with Taiwan Cooperative Bank to increase the credit limit to $2,200,000; all other terms remained the same as stated above.

J. In August 2021, the subsidiary, Farglory Free Trade Zone Co., Ltd., entered into a credit contract with Taichung Commercial Bank, the credit facility amounted to $160,000 and was jointly guaranteed by Chao, Wen-Chia.

K. In September 2022, the subsidiary, Farglory Free Trade Zone Co., Ltd., entered into a credit contract with Land Bank for a credit facility of $2,279,200. Under the credit contract, the Company shall provide the H building in the Value-added Park as collateral, and the subsidiary shall grant the first mortgage right to Land Bank based on the loan amount plus 20% within 6 months from the date of completion of the first registration of ownership after the construction was completed, and the subsidiary shall pledge demand deposit.

L. In September 2022, the subsidiary, Farglory Free Trade Zone Co., Ltd., entered into a credit contract with Shanghai Commercial and Savings Bank. The credit facility amounted to $300,000 and was jointly guaranteed by Chao, Wen-Chia.

M. Please refer to Note 7(3) for details of guarantees provided by related parties.

~41~

~42~

(17) Other non-current liabilities

	December 31, 2025	December 31, 2024
Shareholders	$ 230,000	$ 230,000
Pension liabilities	23,876	31,105
Guarantee deposits	490,147	403,122
Deferred lease revenue - non-current	300,892	351,016
	$ 1,044,915	$ 1,015,243

(18) Pensions

A. (a) The Group has a defined benefit pension plan in accordance with the Labor Standards Act, covering all regular employees' service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Labor Standards Act. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Group contributes monthly an amount equal to $2\%$ of the employees' monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Group would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Group make contributions for the deficit by next March.

(b) The amounts recognised in the balance sheet are as follows:

	December 31, 2025	December 31, 2024
Present value of defined benefit obligations	($ 136,741)	($ 141,897)
Fair value of plan assets	112,865	110,792
Net defined benefit liability	($ 23,876)	($ 31,105)

	2025
	Present value of defined benefit obligations	Fair value of plan assets	Net defined benefit liability
At January 1	($ 141,897)	$ 110,792	($ 31,105)
Current service cost	( 254)	-	( 254)
Interest (expense) income	( 1,869)	1,720	( 149)
	( 144,020)	112,512	( 31,508)
Remeasurements:
Experience adjustments	( 4,943)	7,492	2,549
Pension fund contribution	-	5,083	5,083
Paid pension	12,222	( 12,222)	-
At December 31	($ 136,741)	$ 112,865	($ 23,876)
	2024
	Present value of defined benefit obligations	Fair value of plan assets	Net defined benefit liability
At January 1	($ 139,827)	$ 101,527	($ 38,300)
Current service cost	( 187)	-	( 187)
Interest (expense) income	( 2,097)	1,583	( 514)
	( 142,111)	103,110	( 39,001)
Remeasurements:
Experience adjustments	( 4,145)	3,250	( 895)
Pension fund contribution	-	8,791	8,791
Paid pension	4,359	( 4,359)	-
At December 31	($ 141,897)	$ 110,792	($ 31,105)

(d) The Bank of Taiwan was commissioned to manage the Fund of the Group's defined benefit pension plan in accordance with the Fund's annual investment and utilisation plan and the "Regulations for Revenues, Expenditures, Safeguard and Utilisation of the Labor Retirement Fund" (Article 6: The scope of utilisation for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-the-counter, or private placement equity securities, investment in domestic or foreign real estate securitization products, etc.). With regard to the utilisation of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings is less than aforementioned rates, government shall make payment for the deficit after being authorised by the Regulator. The Group has no right to participate in managing and operating that fund and hence the Group is unable to disclose the classification

of plan assets fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as of December 31, 2025 and 2024 is given in the Annual Labor Retirement Fund Utilisation Report announced by the government.

(e) The principal actuarial assumptions used were as follows:

	Years end December 31,
	2025	2024
Discount rate	1.50%	1.50%
Future salary increases	3.00%	3.00%

Assumptions regarding future mortality experience were estimated in accordance with the 3rd Version of Taiwan Standard Ordinary Experience Mortality Table. Assumptions rate were estimated in accordance with 70% of the expected mortality rate.

Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis was as follows:

	Discount rate		Future salary increases
	Increase 1%	Decrease 1%	Increase 1%	Decrease 1%
December 31, 2025
Effect on present value of defined benefit obligation	($ 9,394)	$ 10,602	$ 8,966	($ 8,149)
December 31, 2024
Effect on present value of defined benefit obligation	($ 10,321)	$ 11,685	$ 9,968	($ 9,035)

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 of analysing sensitivity and the method of calculating net pension liability in the balance sheet are the same.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the previous period.

(f) Expected contributions to the defined benefit pension plans of the Group for the year ending December 31, 2026 amount to $8,825.

(g) As of December 31, 2025, the weighted average duration of the retirement plan is 1.2~5.7 years.

B. (a) Effective July 1, 2005, the Group has established a defined contribution pension plan (the "New Plan") under the Labor Pension Act (the "Act"), covering all regular employees with R.O.C. nationality. Under the New Plan, the Group contributes monthly an amount based on 6% of the employees' monthly salaries and wages to the employees' individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump

~44~

sum upon termination of employment.

(b) The pension costs under the defined contribution pension plans of the Group for the years ended December 31, 2025 and 2024 were $23,936 and $22,526, respectively.

(19) Share capital

A. As of December 31, 2025, the Company's authorised capital and the paid-in capital were $5,000,000 and $3,705,529 with a par value of $10 (in dollars) per share, respectively. All proceeds from shares issued have been collected.

B. In order to strengthen capital and improve the financial structure, the Company resolved at the shareholders' meeting on June 25, 2024 to convert retained earnings of $269,102 into capital by issuing new shares. At the board meeting on July 5, 2024, it was further resolved that the ex-rights date will be July 30, 2024. The above transaction has been completed and the registration has been updated accordingly.

C. In order to strengthen capital and improve the financial structure, the Company resolved at the shareholders' meeting on June 25, 2025 to convert retained earnings of $72,657 into capital by issuing new shares. At the board meeting on July 8, 2025, it was further resolved that the ex-rights date will be August 5, 2025. The above transaction has been completed and the registration has been updated accordingly.

D. Movements in the number of the Company's shares outstanding are as follows:

	2025	2024
At January 1	363,287,170	336,377,010
Capitalization of retained earnings	7,265,743	26,910,160
At December 31	370,552,913	363,287,170

(20) Capital surplus

Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Act requires that the amount of capital surplus to be capitalised mentioned above should not exceed 10% of the paid-in capital each year. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

	2025
	Share premium	Changes in ownership interests in subsidiaries	Others	Total
At January 1 (December 31)	$ 4,308,832	$ 45,694	$ 20	$ 4,354,546

	2024
	Share premium	Changes in ownership interests in subsidiaries	Others	Total
At January 1	$ 4,308,832	$ -	$ 20	$ 4,308,852
Acquisition of additional equity in subsidiary	-	45,694	-	45,694
At December 31	$ 4,308,832	$ 45,694	$ 20	$ 4,354,546

(21) Retained earnings

A. As the Company's industry changes rapidly and the life cycle of business is in the growth stage, the appropriation of dividends shall consider the capital needs of the Company in the future and long-term financial plan. If the Company's annual general final accounts show profit after tax for the year, the Company shall first offset the earnings against the accumulated deficit, set aside 10% for legal reserve until the legal reserve equals the total capital stock balance, and provide or reverse special reserve according to laws or regulations of the authority. The remaining earnings with the beginning unappropriated earnings shall be appropriated as shareholders' dividends and bonus which shall be proposed by the Board of Directors and approved by the shareholders. However, the Company can retain adequate earnings and not to appropriate based on the Company's current and future situation when appropriating earnings.

The distribution of dividends can be in the form of stock dividends and cash dividends, and the proportion will be based on the investment plan and capital structure. However, cash dividends shall not be higher than 50% of total dividends distributed and their proportion can be adjusted by resolution of shareholders.

B. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company's paid-in capital.

C. The appropriations of 2024 and 2023 earnings had been approved by the shareholders during their meetings on June 25, 2025 and June 25, 2024, respectively. Details are summarised below:

	Years ended December 31
	2024		2023
	Amount	Dividends per share (in dollars)	Amount	Dividends per share (in dollars)
Legal reserve	$ 90,966		$ 92,176
Stock dividends	72,657	$ 0.20	269,102	$ 0.8
Cash dividends	399,616	1.10	302,739	0.9
Total	$ 563,239		$ 664,017

D. The appropriation of 2025 earnings was resolved by the Board of Directors on March 11, 2026:

	Year ended December 31
	2025
	Amount	Dividends per share (in dollars)
Legal reserve	$ 103,015
Cash dividends	666,995	$ 1.80
Total	$ 770,010

Aforementioned 2025 earnings appropriation proposal has not yet been resolved by the stockholders.

E. The information on resolutions of shareholders will be posted in the "Market Observation Post System" at the website of the Taiwan Stock Exchange.

(22) Transactions with non-controlling interest

A. The Group did not participate in the capital increase raised by a subsidiary proportionally to its interest to the subsidiary

The Group's subsidiary, Farglory Logistics Co., Ltd., increased its capital by issuing new shares on May 27, 2024. The Group did not acquire shares proportionally to its interest. As a result, the Group's equity interest decreased by 20%. The transaction increased non-controlling interest by $317,447 and decreased the equity attributable to owners of parent by $47,447. The effect of changes in interests in Farglory Logistics Co., Ltd. on the equity attributable to owners of the parent for the year ended December 31, 2024 is shown below:

	Year ended December 31, 2024
Subsidiary cash capital reduction (no change in shareholding ratio)	$ 270,000
Increase in the carrying amount of non-controlling interest	(317,447)
Capital surplus - recognition of changes in ownership interest in subsidiaries	($ 47,447)

B. Subsidiary cash capital reduction (no change in shareholding ratio)

On August 28, 2024, the subsidiary of the Group, Far Eastern Logistics Co., Ltd., set the base date for its cash capital reduction of NT$10 per share, for 85,000 thousand shares, for a total consideration of $850,000. This transaction reduced non-controlling interest by $170,000, and reduced the equity attributable to the parent company's owners by $680,000.

C. Acquisition of additional equity interest in a subsidiary

On October 25, 2024, the Group acquired an additional 20% of shares of its subsidiary – Farglory Logistics Co., Ltd. for a total cash consideration of $102,799. The carrying amount of noncontrolling interest in Farglory Logistics Co., Ltd. was $148,493 at the acquisition date. This transaction resulted in a decrease in the non-controlling interest by $148,493 and an increase in the equity attributable to owners of the parent by $45,694. The effect of changes in interests in Farglory Logistics Co., Ltd. on the equity attributable to owners of the parent for the year ended December 31, 2024 is shown below:

	Year ended December 31, 2024
Carrying amount of non-controlling interest acquired	$ 148,493
Consideration paid to non-controlling interest	( 102,799)
Capital surplus - recognition of changes in ownership interest in subsidiaries	$ 45,694

(23) Other equity items

	2025	2024
	Unrealised gains (losses) on valuation	Unrealised gains (losses) on valuation
At January 1	$ -	$ 219,802
Valuation adjustment	-	21,104
Disposal of equity investments at fair value through other comprehensive income	-	( 240,906)
At December 31	$ -	$ -

(24) Operating revenue

	Years ended December 31,
	2025	2024
Revenue from contracts with customers	$ 2,873,816	$ 2,364,752
Rental revenue	1,269,232	1,100,015
	$ 4,143,048	$ 3,464,767

The Group derives revenue from the transfer of warehousing and services over time and at a point in time in the following major departments:

Year ended December 31, 2025	Farglory Free Trade Zone Investment Holding Co., Ltd	Farglory Free Trade Zone Co., Ltd.	Farglory Logistics Co., Ltd.	Toatal
Revenue type-service	$ 36,120	$ 45,665	$ 27,614	$ 109,399
Revenue type-warehousing	-	2,826,887	-	2,826,887
Inter-segment revenue	( 36,120)	( 2,350)	( 24,000)	( 62,470)
Revenue from external customer contracts	$ -	$ 2,870,202	$ 3,614	$ 2,873,816
Timing of revenue recognition Over time	$ -	$ 2,870,202	$ 3,614	$ 2,873,816
Year ended December 31, 2024	Farglory Free Trade Zone Investment Holding Co., Ltd	Farglory Free Trade Zone Co., Ltd.	Farglory Logistics Co., Ltd.	Toatal
Revenue type-service	$ 36,120	$ 29,099	$ 27,575	$ 92,794
Revenue type-warehousing	-	2,334,355	-	2,334,355
Inter-segment revenue	( 36,120)	( 2,086)	( 24,191)	( 62,397)
Revenue from external customer contracts	$ -	$ 2,361,368	$ 3,384	$ 2,364,752
Timing of revenue recognition Over time	$ -	$ 2,361,368	$ 3,384	$ 2,364,752

(25) Interest income

	Years ended December 31,
	2025	2024
Interest income from bank deposits	$ 4,401	$ 7,161
Interest income from financial assets measured at amortised cost	3,594	1,767
Other interest income	8	23
	$ 8,003	$ 8,951

(26) Other income

	Years ended December 31,
	2025	2024
Dividend income	$ -	$ 31
Equipment maintenance income	727	940
Waste recycle income	2,665	3,233
Compensation income	4,384	1,145
Pension fund settlement account transfer income	-	5,818
Income from collection of pensions	1,291	-
Other income	3,254	4,761
	$ 12,321	$ 15,928

(27) Other gains and losses

	Years ended December 31,
	2025	2024
Net foreign exchange losses	($ 816)	($ 63)
Gains on financial assets at fair value through profit or loss	689	12
Compensation losses	(473)	(580)
Other gains and losses	(4,688)	(5,902)
	($ 5,288)	($ 6,533)

(28) Finance costs

	Years ended December 31,
	2025	2024
Interest expense:
Lease liability	$ 72,527	$ 72,264
Bank borrowings	298,791	280,342
Less: Capitalisation of qualifying assets	(44,574)	(25,289)
Other financial expenses	6,345	5,428
	$ 333,089	$ 332,745

(29) Expenses by nature

	Year ended December 31, 2025
	Operating costs	Operating expenses	Total
Employee benefit expense	$ 638,069	$ 181,020	$ 819,089
Depreciation charge	816,531	141,158	957,689
Amortisation charges	291	7,934	8,225
	Year ended December 31, 2024
	Operating costs	Operating expenses	Total
Employee benefit expense	$ 528,399	$ 151,638	$ 680,037
Depreciation charge	730,406	133,573	863,979
Amortisation charges	250	8,436	8,686

(30) Employee benefit expense

	Years ended December 31,
	2025	2024
Salary expenses	$ 698,806	$ 569,255
Labour and health insurance fees	53,273	49,679
Pension costs	24,339	23,227
Directors’ remuneration (including travel expenses and remuneration)	12,131	9,603
Other personnel expenses	30,540	28,273
	$ 819,089	$ 680,037

The Group had 674 and 642 employees as of December 31, 2025 and 2024, respectively.

A. In accordance with the Articles of Incorporation of the Company, a ratio of distributable profit of the current year (profit before tax that excludes employee’s compensation and directors’ remunerations), after covering accumulated losses, shall be appropriated as employees’ compensation and directors’ remuneration. The ratio shall not be lower than 1% for employees’ compensation and shall not be higher than 2% for directors’ remuneration.

B. For the years ended December 31, 2025 and 2024, employees’ compensation were accrued at $10,516 and $7,244, respectively; while directors’ remuneration were accrued at $3,155 and $2,173, respectively. The aforementioned amounts were recognised in salary expenses.

C. The employees’ compensation and directors’ remuneration were estimated in accordance with the Articles of Incorporation of the Company and accrued based on distributable profit of current year for the year ended December 31, 2025. The employees’ compensation of $10,516 and directors’ remuneration of $3,155 were resolved by the Board of Directors on March 11, 2026.

D. Employees’ compensation and directors’ remuneration for 2024 as resolved by the Board of Directors were in agreement with those amounts recognised in the 2024 financial statements.

E. Information about employees’ compensation and directors’ remuneration of the Company as resolved by the Board of Directors will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

(31) Income tax

A. Income tax expense

(a) Components of income tax expense:

	Years ended December 31,
	2025	2024
Current tax:
Current tax on profits for the year	$ 152,184	$ 103,174
Tax on undistributed surplus earnings	13,251	6,217
Prior year income tax over estimation	( 637)	( 11,363)
Total current tax	164,798	98,028
Deferred tax:
Origination and reversal of temporary differences	19,779	11,983
Total deferred tax	19,779	11,983
Income tax expense	$ 184,577	$ 110,011

(b) The income tax (charge)/credit relating to components of other comprehensive income is as follows:

	Years ended December 31,
	2025	2024
Remeasurement of defined benefit obligations	$ 510	($ 179)

B. Reconciliation between income tax expense and accounting profit

	Years ended December 31,
	2025	2024
Tax calculated based on profit before tax and statutory tax rate	$ 449,970	$ 307,350
Expenses disallowed by tax regulation	293	230
Tax exempt income by tax regulation	( 207,392)	( 142,688)
Tax on undistributed surplus earnings	13,251	6,217
Effect from investment tax credits	( 70,908)	( 61,379)
Prior year income tax estimation	( 637)	( 11,363)
Effect from Alternative Minimum Tax Income tax expense	$ 184,577	$ 110,011

C. Amounts of deferred tax assets or liabilities as a result of temporary differences and investment tax credits are as follows:

	2025
	January 1	Recognised in profit or loss	Recognised in other comprehensive income	December 31
-Deferred tax assets:
Temporary differences:
Allowance for excess of bad debts	$ -	$ 68	$ -	$ 68
Depreciation difference between tax and financial basis	12,137	( 1,082)	-	11,055
Pension liabilities	6,221	( 935)	( 510)	4,776
Unused compensated absences	2,720	470	-	3,190
Investment tax credit	295,823	( 24,976)	-	270,847
	316,901	( 26,455)	( 510)	289,936
-Deferred tax liabilities:
Rental revenue	( 39,887)	6,676	-	( 33,211)
	$ 277,014	($ 19,779)	($ 510)	$ 256,725

~53~

	2024
	January 1	Recognised in profit or loss	Recognised in other comprehensive income	December 31
-Deferred tax assets:
Temporary differences:
Allowance for excess of bad debts	$ 29	($ 29)	$ -	$ -
Depreciation difference between tax and financial basis	13,219	( 1,082)	-	12,137
Pension liabilities	7,660	( 1,618)	179	6,221
Unused compensated absences	3,465	( 745)	-	2,720
Investment tax credit	291,991	3,832	-	295,823
	316,364	358	179	316,901
-Deferred tax liabilities:
Rental revenue	( 27,546)	( 12,341)	-	( 39,887)
	$ 288,818	($ 11,983)	$ 179	$ 277,014

D. Details of the amount the subsidiary, Farglory Free Trade Zone Co., Ltd., is entitled as investment tax credit and unrecognised deferred tax assets are as follows:

Qualifying items	December 31, 2025
	Unused tax credits	Unrecognised deferred tax assets	Expiry year
Equipment or technology for construction or operation purchased by a private institution participating in a major infrastructure	$ 828,042	$ 630,362	2029
Qualifying items	December 31, 2024
	Unused tax credits	Unrecognised deferred tax assets	Expiry year
Equipment or technology for construction or operation purchased by a private institution participating in a major infrastructure	$ 750,328	$ 454,510	2028

E. The Company's, the subsidiaries', Farglory Free Trade Zone Co., Ltd. and Farglory Logistics Co., Ltd., income tax returns through 2023 have been assessed and approved by the Tax Authority.

(32) Earnings per share

	Year ended December 31, 2025
	Amount after tax	Weighted average number of ordinary shares outstanding (shares in thousands)	Earnings per share (in dollars)
Basic earnings per share
Profit attributable to ordinary shareholders of the parent	$ 1,027,805	370,553	$ 2.77
Diluted earnings per share
Assumed conversion of all dilutive potential ordinary shares
Employees’ compensation	-	251
Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	$ 1,027,805	370,804	$ 2.77
	Year ended December 31, 2024
	Amount after tax	Weighted average number of ordinary shares outstanding (shares in thousands)	Earnings per share (in dollars)
Basic earnings per share
Profit attributable to ordinary shareholders of the parent	$ 716,913	370,553	$ 1.93
Diluted earnings per share
Assumed conversion of all dilutive potential ordinary shares
Employees’ compensation	-	219
Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	$ 716,913	370,772	$ 1.93

When calculating earnings per share, the resolution made at the shareholders’ meeting on June 25, 2024 and 2025, to use $269,102 and $72,657 of undistributed earnings for a capital increase and issue new shares has been considered. For related information, please refer to Note 6(19). The impact due to the capital increase and issuance of new shares in 2024 and 2025 has been retrospectively adjusted.

(33) Supplemental cash flow information

Investing activities with partial cash payments

	Years ended December 31,
	2025	2024
Purchase of property, plant and equipment (including investment property)	$ 1,083,183	$ 2,050,618
Add: Opening balance of payable on equipment (Note)	148,447	309,090
Less: Ending balance of payable on equipment (Note)	( 101,962)	( 148,447)
Cash paid during the year	$ 1,129,668	$ 2,211,261

Note: Including 'Notes payable (related parties)', 'Other payables (related parties)' and Other non-current liabilities - other.

(34) Changes in liabilities from financing activities

	2025
	Short-term notes and bills payable	Short-term borrowings	Long-term borrowings	Lease liabilities	Guarantee deposits received	Liabilities from financing activities-gross
At January 1	$ 599,571	$ 1,110,000	$ 9,627,394	$ 3,301,347	$ 403,122	$ 15,041,434
Changes in cash flow from financing activities	( 500,000)	340,000	( 264,798)	( 93,477)	92,759	( 425,516)
Changes in other non-cash items	111	-	-	104,736	( 5,734)	99,113
At December 31	$ 99,682	$ 1,450,000	$ 9,362,596	$ 3,312,606	$ 490,147	$ 14,715,031
	2024
	Short-term notes and bills payable	Short-term borrowings	Long-term borrowings	Lease liabilities	Guarantee deposits received	Liabilities from financing activities-gross
At January 1	$ 379,328	$ 930,000	$ 8,983,182	$ 3,036,634	$ 358,423	$ 13,687,567
Changes in cash flow from financing activities	220,000	180,000	644,212	( 89,420)	44,974	999,766
Changes in other non-cash items	243	-	-	354,133	( 275)	354,101
At December 31	$ 599,571	$ 1,110,000	$ 9,627,394	$ 3,301,347	$ 403,122	$ 15,041,434

RELATED PARTY TRANSACTIONS

(1) Parent and ultimate controlling party

The Company's stocks are held by the public, so it has neither an ultimate parent company nor ultimate controlling party.

(2) Names of related parties and relationship

Names of related parties	Relationship with the Company
Tong Yuan Construction Co., Ltd.	Other related party
Farglory International Co., Ltd.	Entity with significant influence to the Company
Fareast Land Development Co., Ltd.	Entity with significant influence to the Company
Farglory Land Development Co., Ltd.	Other related party
Farglory Life Insurance Inc.	Other related party
Farglory Hotel Co., Ltd.	Other related party
Yeh, Chun-Yao	Chairman of the board
Chao, Chiu-Hsiang	Other related party
Chao, Teng-Hsiung	Other related party
Chao, Wen-Chia	Other related party
Taiwan Coalition of Service Industries	The Company’s chairman is also the chairman of this association

(3) Significant related party transactions

A. Payables to related parties:

	December 31, 2025	December 31, 2024
Notes payable:
Farglory Life Insurance Inc.	$ 195	$ 188
Other payables:
Tong Yuan Construction Co., Ltd.	$ 52,462	$ 54,720
Farglory Life Insurance Inc.	185	178
	$ 52,647	$ 54,898

B. Property transactions:

The acquired property, plant and equipment was built according to the contract which was signed by the subsidiary, Farglory Free Trade Zone Co., Ltd., and the related party, Tong Yuan Construction Co., Ltd.

2025
Construction name	Total contract price (before tax)	Additions	Accumulated balance	Unpaid amount
Construction of H building in the Value-added Park (the second stage, including additional construction)	$ 3,100,952	$ 648,381	$ 3,100,952	$ -

~57~

2024

Construction name	Total contract price (before tax)	Additions	Accumulated balance	Unpaid amount
Construction of cargo terminal (the second stage)	$ 1,469,524	$ 17,951	$ 1,469,524	$ -
Additional construction of No. 2 express warehouse	767,238	217,210	767,238	-
Construction of H building in the Value-added Park (the second stage, including additional construction)	3,100,952	1,437,714	2,452,571	648,381
	$ 5,337,714	$ 1,672,875	$ 4,689,333	$ 648,381

Classification of related party and the consideration received

Classification/name of related party	Years ended December 31,
	2025	2024
Tong Yuan Construction Co., Ltd.	$ 648,381	$ 1,672,875

C. Shareholders (shown as ‘Other non-current liabilities’)

	Year ended December 31, 2025		Year ended December 31, 2024
	Maximum balance	Ending balance	Maximum balance	Ending balance
Yeh, Chun-Yao	$ -	$ -	$ 230,000	$ -
Chao, Teng-Hsiung	$ 230,000	$ 230,000	$ 230,000	$ 230,000

The above loan from the shareholder is non-interest bearing.

D. Endorsements and guarantees provided to related parties

Guaranteed items	Guarantors	Guaranteed companies	December 31, 2025	December 31, 2024
The commercial paper issued through MEGA BILLS	Chao, Wen-Chia	The Company	$ 50,000	$ 50,000
The commercial paper issued through China Bills Finance Corporation	Chao, Wen-Chia	The Company	50,000	50,000
The commercial paper issued through Ta Ching Bills Finance Corporation	Chao, Wen-Chia	The Company	50,000	50,000
The commercial paper issued through International Bills Finance Corporation	Chao, Wen-Chia	The Company	-	30,000
The commercial paper issued through Taiwan Cooperative Bills Finance Corporation.	Chao, Wen-Chia	The Company	-	100,000

Guaranteed items	Guarantors	Guaranteed companies	December 31, 2025	December 31, 2024
Entered into a credit contract with Mega Bank	Chao, Wen-Chia	The Company	100,000	200,000
Entered into a credit contract with Taipei Fubon Bank	Chao, Wen-Chia	The Company	100,000	-
The commercial paper issued through MEGA BILLS	Chao, Wen-Chia	Farglory Free Trade Zone Co., Ltd.	100,000	100,000
The commercial paper issued through Dah Chung Bills Finance Corporation	Chao, Wen-Chia	Farglory Free Trade Zone Co., Ltd.	200,000	200,000
The commercial paper issued through Ta Ching Bills Finance Corporation	Chao, Wen-Chia	Farglory Free Trade Zone Co., Ltd.	200,000	200,000
The commercial papers issued through International Bills Finance Corporation (Note)	Chao, Wen-Chia	Farglory Free Trade Zone Co., Ltd.	150,000	200,000
The commercial papers issued through China Bills Finance Corporation	Chao, Wen-Chia	Farglory Free Trade Zone Co., Ltd.	200,000	200,000
The commercial papers issued Taiwan Cooperative Bills Finance Corporation	Chao, Wen-Chia	Farglory Free Trade Zone Co., Ltd.	100,000	100,000
The commercial papers issued Grand Bills Finance Corporation	Chao, Wen-Chia	Farglory Free Trade Zone Co., Ltd.	200,000	-
Entered into a credit contract with Shanghai Commercial and Savings Bank	Chao, Wen-Chia	Farglory Free Trade Zone Co., Ltd.	300,000	300,000
Entered into a credit contract with Bank of Taiwan	Chao, Wen-Chia	Farglory Free Trade Zone Co., Ltd.	250,000	250,000
Entered into a credit contract with Bank of Panhsin	Chao, Wen-Chia	Farglory Free Trade Zone Co., Ltd.	100,000	80,000
Entered into a credit contract with First Commercial Bank	The Company and Chao, Wen-Chia	Farglory Free Trade Zone Co., Ltd.	300,000	300,000
Entered into a credit contract with Taiwan Cooperative Bank	The Company and Chao, Wen-Chia	Farglory Free Trade Zone Co., Ltd.	300,000	-
Entered into a credit contract with Taichung Commercial Bank	Chao, Wen-Chia	Farglory Free Trade Zone Co., Ltd.	160,000	160,000
Entered into a credit contract with Taipei Fubon Bank	Chao, Wen-Chia	Farglory Free Trade Zone Co., Ltd.	300,000	300,000
Entered into a credit contract with CTBC Bank	Chao, Wen-Chia	Farglory Free Trade Zone Co., Ltd.	200,000	-
Entered into a credit contract with O-Bank	Chao, Wen-Chia	Farglory Free Trade Zone Co., Ltd.	180,000	200,000

Guaranteed items	Guarantors	Guaranteed companies	December 31, 2025	December 31, 2024
Entered into a credit contract with Taishin International Bank	Chao, Wen-Chia	Fargory Free Trade Zone Co., Ltd.	200,000	100,000
Entered into a credit contract with KGI Bank	Chao, Wen-Chia	Fargory Free Trade Zone Co., Ltd.	300,000	300,000
Entered into a credit contract with Land Bank	Chao, Wen-Chia	Fargory Free Trade Zone Co., Ltd.	954,000	954,000
Entered into a credit contract with Land Bank	Chao, Wen-Chia	Fargory Free Trade Zone Co., Ltd.	2,279,200	2,279,200
Entered into a credit contract with Mega Bank	The Company and Chao, Wen-Chia	Fargory Free Trade Zone Co., Ltd.	3,600,000	3,600,000
Entered into a credit contract with First Commercial Bank	The Company and Chao, Wen-Chia	Fargory Free Trade Zone Co., Ltd.	880,000	880,000
Entered into a credit contract with Taiwan Cooperative Bank	The Company and Chao, Wen-Chia	Fargory Free Trade Zone Co., Ltd.	2,200,000	2,200,000
Entered into a contract for a syndicated borrowing facility with banks including Mega Bank for a credit line	The Company and Chao, Wen-Chia	Fargory Free Trade Zone Co., Ltd.	2,120,000	2,120,000
The commercial paper issued through MEGA BILLS	Chao, Wen-Chia	Fargory Logistics Co., Ltd.	50,000	50,000
The commercial papers issued through International Bills Finance Corporation	Chao, Wen-Chia	Fargory Logistics Co., Ltd.	-	30,000
The commercial paper issued through Dah Chung Bills Finance Corporation	Chao, Wen-Chia	Fargory Logistics Co., Ltd.	30,000	30,000
The commercial papers issued through China Bills Finance Corporation	Chao, Wen-Chia	Fargory Logistics Co., Ltd.	30,000	30,000
Entered into a credit contract with Taiwan Shin Kong Commercial Bank	Chao, Wen-Chia	Fargory Logistics Co., Ltd.	200,000	200,000
Entered into a credit contract with Taiwan Business Bank	Chao, Wen-Chia	Fargory Logistics Co., Ltd.	350,000	350,000
Entered into a credit contract with Taipei Fubon Bank	Chao, Wen-Chia	Fargory Logistics Co., Ltd.	50,000	-

Note: As of December 31, 2025, the credit limit has been finalized.

F. Collateral provided to related parties

In December 2019, the subsidiary, Fargory Free Trade Zone Co., Ltd., entered into a credit contract with Mega Bank. Under the credit contract, Fargory Land Development Co., Ltd. and Fargory International Investment Co., Ltd. shall provide not less than 64,645,785 shares of Fargory Land Development Co., Ltd. as collateral which were pledged to Mega Bank. Due to the

completion of the mortgage for buildings C, D, E, and F, the stocks were released from pledge and retrieved separately in October 2024.

(4) Key management compensation

	Years ended December 31,
	2025	2024
Salaries and other short-term employee benefits	$ 21,688	$ 17,692
Post-employment benefits	283	277
	$ 21,971	$ 17,969

8. PLEDGED ASSETS

The Group’s assets pledged as collateral are as follows:

Pledged asset	Book value		Purpose
	December 31, 2025	December 31, 2024
Financial assets at amortised cost – current	$ 30,000	$ 30,000	Line of credit for long-term borrowings (Note 4)
Investment property
-Land	671,960	671,960	Line of credit for short-term borrowings and long-term borrowings
-Buildings and structures	17,070,301	14,379,799
Property, plant and equipment	1,428,852	1,502,152	Line of credit for long-term borrowings
-Buildings and structures
Financial assets at amortised cost-non-current	216,000	276,000	Pledge for collateral loan (Note 1)
Performance guarantee (Note 2)
Line of credit for long-term borrowings (Note 3)
Other current assets
- Other assets - Agricultural land	21,710	21,710	Line of credit for long-term borrowings (Note 5)
	$ 19,438,823	$ 16,881,621

Note 1: According to the syndicated facility agreement, the subsidiary, Farglory Free Trade Zone Co., Ltd., shall maintain a special account with the management bank starting from within three months before the grace period ends and for the duration of the agreement. The quarterly average balance of the special deposit account shall be maintained above $50,000 as of December 31, 2025 and 2024, and pledged to management bank, thus, the subsidiary provided six-month time deposit as collateral to management bank in the amount of $50,000.

Note 2: According to the settlement agreement between the subsidiary, Farglory Free Trade Zone Co., Ltd., and Kintetsu World Express (Taiwan), Inc., Farglory Free Trade Zone Co., Ltd. will pledge the time deposit of $106,000 as collateral for the lease guarantee of plant of Kintetsu World Express (Taiwan), Inc.

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Note 3: The subsidiary, Farglory Free Trade Zone Co., Ltd., entered into a borrowing contract with Mega Bank. Under the contract, the Company shall maintain a special account with the management bank, whereby the quarterly average balance of special deposits account shall be maintained at $60,000 on December 31, 2025 and 2024. Thus, subsidiary provided six-month time deposit as collateral to the management bank in the amount of $60,000.

Note 4: According to the stipulations of the short-term loan agreement, during the utilization period, the Company must provide a certain bank deposit pledge to the bank based on the outstanding balance.

Note 5: According to the other assets of the subsidiary Farglory Logistics - agricultural land, the parent company signed a contract with the related party Zhao Qiuxiang in June 1991 to purchase land located in the Haihu section of the Kengzikou section of Luzhu District, Taoyuan City, as a storage base to connect with peripheral roads. Road land, total contract price $21,710. The land is still agricultural land and cannot be transferred according to law. Therefore, the cost paid is temporarily listed under "other non-current assets". The land property was transferred to the company in May 2006 with the business transfer of the parent company, and has been pledged to the bank as security for long-term borrowings.

SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT COMMITMENTS

(1) Contingencies

None.

(2) Commitments

A. In May 2003, the subsidiary, Farglory Free Trade Zone Co., Ltd., entered into Taoyuan Air-Cargo Parks Constructions and Management with the Civil Aeronautics Administration (the 'CAA'). Under the contract, the subsidiary was commissioned to build, operate and manage related facilities and business of Taoyuan Airport Industrial Park. The contract period is 50 years, and at the end of the contract, the related operating assets which were built by the subsidiary will be transferred to CAA.

According to the regulation of the contract, the subsidiary shall pay operating performance guarantee which was substituted by performance letter of guarantee from the bank. As of December 31, 2025, the amount of performance letter of guarantee from the bank was $157,382.

B. The subsidiary, Farglory Free Trade Zone Co., Ltd., leased land from CAA and operated the Taoyuan Airport Industrial Park. Under the 'Regulations for Favorable Rentals Regarding Public Land Lease and Superficies in Infrastructure Projects', the rent was 60% of rent of national lease bases plus business tax and other expenses. The rent of land shall be prepaid for three months in the concession period at four times a year on the fifth of January, April, July and October.

C. In accordance with the building and operating contract, the subsidiary, Farglory Free Trade Zone Co., Ltd., shall pay royalty to CAA. Royalty is calculated with 20% of import and export on customs basis growth rate and 80% of cargo volume growth rate of Taoyuan International Airport

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as adjustment index. The increase or decrease range of royalty shall not be higher than 5%.

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

Refer to Notes 6(21) and 6(30) for details.

12. OTHERS

(1) Capital management

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

The Group monitors capital on the basis of the gearing ratio. This ratio is calculated as net debt divided by total capital. Net debt is calculated as total borrowings (including ‘current and noncurrent borrowings’ as shown in the consolidated balance sheet) less cash and cash equivalents. Total capital is calculated as ‘equity’ as shown in the consolidated balance sheet plus net debt. During the year ended December 31, 2025, the Group’s strategy, which was unchanged from 2024, was to maintain the gearing ratio within a certain range. The borrowing balance as at December 31, 2025 and 2024 were $10,912,279 and $11,336,965, respectively. The relevant ratios were 48% and 51% as of December 31, 2025 and 2024, respectively.

(2) Financial instruments

A. Financial instruments by category

	December 31, 2025	December 31, 2024
Financial assets
Financial assets at fair value through profit or loss
Financial assets mandatorily measured at fair value through profit or loss	$ 34,701	$ 50,012
Financial assets at fair value through other comprehensive income
Designation of equity instruments - non-current	$ -	$ 100

	December 31, 2025	December 31, 2024
Financial assets at amortised cost
Cash and cash equivalents	$ 858,619	$ 520,331
Financial assets at amortised cost	446,000	656,000
Notes receivable	3,242	4,708
Accounts receivable	357,127	310,137
Other receivables	34,845	25,046
Guarantee deposits paid	1,641	1,588
	$ 1,701,474	$ 1,517,810
Financial liabilities
Financial liabilities at fair value through profit or loss
Short-term borrowings	$ 1,450,000	$ 1,110,000
Short-term notes and bills payable	99,682	599,571
Notes payable (including related parties)	70,413	88,294
Other accounts payable (including related parties)	506,084	410,177
Long-term borrowings (including current portion)	9,362,596	9,627,394
Other financial liabilities (shown as ‘Other non-current liabilities’)	490,147	403,122
	$ 11,978,922	$ 12,238,558
Lease liabilities	$ 3,312,606	$ 3,301,347

B. Financial risk management policies

(a) The Group's operating activities expose it to a variety of financial risks, including market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. The Group's overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group's financial position and financial performance.
(b) Risk management is carried out by a central treasury department (Group treasury) under policies approved by the Board of Directors. Group treasury identifies, evaluates and hedges financial risks in close cooperation with the Group's operating units and controls covering specific areas and matters, such as interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.

C. Significant financial risks and degrees of financial risks

(a) Market risk

Foreign exchange risk

The Group's business is primarily in New Taiwan dollars, thus the fluctuation of exchange rate has no significant effect on the Group's assets and liabilities.

Price risk

i. The Group’s equity securities, which are exposed to price risk, are the held financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income. The Group is not exposed to commodity price risk. To manage its price risk arising from investments in equity securities, the Group has pre-set a “stop loss” amount, so the Group does not expect material market risk.

ii. The Group’s investments in equity securities comprise listed and unlisted shares and open-end funds. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased by 1% with all other variables held constant, post-tax profit for the years ended December 31, 2025 and 2024 would have increased/decreased by $347 and $500, respectively, as a result of gains/losses on financial assets classified as at fair value through profit or loss. Other components of equity would have increased/decreased by $0 and $1, respectively, as a result of other comprehensive income classified as equity investment at fair value through other comprehensive income.

Cash flow and fair value interest rate risk

i. The Group’s interest rate risk arises from borrowings. Long-term borrowings issued at variable rates expose the Group to cash flow interest rate risk, which is partially offset by cash and cash equivalents held at variable rates. Borrowings issued at fixed rates expose the Group to fair value interest rate risk. The Group’s borrowings have both fixed and variable interest rate. The Group’s borrowings have both fixed and variable interest rate. The Group’s borrowings at variable rates are primarily denominated in NTD.

ii. If the borrowing interest rate had increased/decreased by 1% with all other variables held constant, profit, net of tax for the years ended December 31, 2025 and 2024 would have decreased/increased by $93,626 and $96,274, respectively. The main factor is that changes in interest expense result from floating rate borrowings.

(b) Credit risk

i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients and counterparties who cannot repay the notes and accounts receivable based on the collection condition.

ii. According to the Group’s credit policy, each local entity in the Group is responsible for managing and analysing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the managers of credit control. The utilisation of credit limits is regularly monitored.

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iii. The Group adopts the following assumption under IFRS 9 to assess whether there has been a significant increase in credit risk on that instrument since initial recognition:

If the contract payments were past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.

iv. The Group assessed that the default occurs when the contract payments are past due over 60 days.

v. The following indicators are used to determine whether the credit impairment of debt instruments has occurred:

(i) It becomes probable that the issuer will enter bankruptcy or other financial reorganization due to their financial difficulties;

(ii) The disappearance of an active market for that financial asset because of financial difficulties;

(iii) Default or delinquency in interest or principal repayments;

(iv) Adverse changes in national or regional economic conditions that are expected to cause a default.

vi. The Group classifies customer's notes and accounts receivable in accordance with customer types. The Group applies the simplified approach using the provision matrix to estimate expected credit loss.

vii. The Group used the forecastability to adjust historical and timely information to assess the default possibility of notes and accounts receivable. On December 31, 2025 and 2024, the provision matrix is as follows:

	Not past due	1 to 30 days past due	31 to 60 days past due	61 to 90 days past due	Past due over 91 days	Total
December 31, 2025
Total book value	$ 360,627	$ 927	$ 12	$ -	$ -	$ 361,566
Expected loss rate	0.25%~10.08%	6.71%~21.64%	22.62%~49.86%	100%	100%
Loss allowance	($ 1,066)	($ 125)	($ 6)	$ -	$ -	($ 1,197)
Net book value	$ 359,561	$ 802	$ 6	$ -	$ -	$ 360,369
	Not past due	1 to 30 days past due	31 to 60 days past due	61 to 90 days past due	Past due over 91 days	Total
December 31, 2024
Expected loss rate	0.21%~0.67%	1.44%~6.93%	50.03%~57.07%	100%	100%
Total book value	$ 310,059	$ 4,538	$ 2,242	$ 111	$ -	$ 316,950
Loss allowance	$ 447	$ 268	$ 1,279	$ 111	$ -	$ 2,105

viii. Movements in relation to the Group applying the simplified approach to provide loss allowance for notes receivable and accounts receivable are as follows:

	2025	2024
	Notes receivable and accounts receivable	Notes receivable and accounts receivable
At January 1	$ 2,105	$ 974
Provision for impairment loss	-	1,131
Reversal of impairment	( 908)	-
At December 31	$ 1,197	$ 2,105

vi. For investments in debt instruments at amortised cost, the credit rating levels are presented below:

	December 31, 2025
		Lifetime
	12 months	Significant increase in credit risk	Impairment of credit	Total
Financial assets at amortised cost	$ 446,000	$ -	$ -	$ 446,000
	December 31, 2024
		Lifetime
	12 months	Significant increase in credit risk	Impairment of credit	Total
Financial assets at amortised cost	$ 656,000	$ -	$ -	$ 656,000

i. Cash flow forecasting is performed in the operating entities of the Group and aggregated by Group treasury. Group treasury monitors rolling forecasts of the Group's liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Group does not breach borrowing limits or covenants on any of its borrowing facilities. Such forecasting takes into consideration the Group's debt financing plans, covenant compliance, compliance with internal balance sheet ratio targets.

ii. The table below analyses the Group's non-derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

Non-derivative financial liabilities:

December 31, 2025	Less than 1 year	Between 1 and 2 years	Between 2 and 5 years	Over 5 years	Total
Short-term borrowings	$ 1,455,173	$ -	$ -	$ -	$ 1,455,173
Short-term notes and bills payable	100,000	-	-	-	100,000
Notes payable and accounts payable (including related parties)	70,413	-	-	-	70,413
Other payables (including related parties)	506,084	-	-	-	506,084
Lease liabilities (including current and non-current)	161,624	160,211	478,705	3,573,790	4,374,330
Long-term borrowings (including current portion)	1,155,571	3,104,012	1,443,190	5,269,235	10,972,008
Other financial liabilities (shown as ‘other non-current liabilities’)	-	-	490,147	230,000	720,147

Non-derivative financial liabilities:

December 31, 2024	Less than 1 year	Between 1 and 2 years	Between 2 and 5 years	Over 5 years	Total
Short-term borrowings	$ 1,116,372	$ -	$ -	$ -	$ 1,116,372
Short-term notes and bills payable	600,000	-	-	-	600,000
Notes payable and accounts payable	88,294	-	-	-	88,294
Other payables (including related parties)	410,177	-	-	-	410,177
Lease liabilities (including current and non-current)	161,055	156,588	464,298	3,619,306	4,401,247
Long-term borrowings (including current portion)	960,812	1,168,657	3,989,475	5,307,713	11,426,657
Other financial liabilities (shown as ‘other non-current liabilities’)	-	-	403,122	230,000	633,122

iii. The Group does not expect the timing of occurrence of the cash flows estimated through the maturity date analysis will be significantly earlier, nor expect the actual cash flow amount will be significantly different.

(3) Fair value information

A. The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Group’s investment in listed stocks and beneficiary certificates is included in Level 1

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Unobservable inputs for the asset or liability. The fair value of the Group’s investment in equity investment without active market is included in Level 3.

B. Fair value information of investment property at cost is provided in Note 6(9).

C. Financial instruments not measured at fair value (including cash and cash equivalents, financial assets at amortised cost, notes receivable, accounts receivable, other receivables, guarantee deposits paid, short-term borrowings, short-term notes and bills payable, notes payable (including related parties), other payables (including related parties), long-term borrowings (including current portion) and deposits received) are approximate to their fair values.

D. The related information on financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities at December 31, 2025 and 2024 is as follows:

December 31, 2025	Level 1	Level 2	Level 3	Total
Assets
Recurring fair value measurements
Financial assets at fair value through profit or loss
Money Market fund	$ 34,701	$ -	$ -	$ 34,701
December 31, 2024	Level 1	Level 2	Level 3	Total
Assets
Recurring fair value measurements
Financial assets at fair value through profit or loss
Money Market fund	$ 50,012	$ -	$ -	$ 50,012
Financial assets at fair value through other comprehensive income
Equity securities	-	-	100	100
	$ 50,012	$ -	$ 100	$ 50,112

E. The methods and assumptions the Group used to measure fair value are as follows:

(a) The instruments the Group used market quoted prices as their fair values (that is, Level 1) are listed below by characteristics:

	Listed shares	Open-end fund
Market quoted price	Closing price	Net asset value

(b) The Group takes into account adjustments for credit risks to measure the fair value of financial and non-financial instruments to reflect credit risk of the counterparty and the Company's credit quality.

F. For the years ended December 31, 2025 and 2024, there was no transfer between Level 1 and Level 2.

G. Operation and management segment is in charge of valuation procedures for fair value measurements being categorised within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions and by applying frequent reviews.

H. The following is the qualitative information of significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement:

	Fair value at December 31, 2025	Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs to fair value
Non-derivative equity instrument:
Unlisted shares	$ -	Net asset value	Not applicable	-	Not applicable
	Fair value at December 31, 2024	Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs to fair value
Non-derivative equity instrument:
Unlisted shares	$ 100	Net asset value	Not applicable	-	Not applicable

I. The following chart is the movement of Level 3 for the years ended December 31, 2025 and 2024:

	2025
	Financial assets at fair value through other comprehensive income
January 1	$ 100
Sold during the year	( 100)
December 31	$ -

J. The Group has carefully assessed the valuation models and assumptions used to measure fair value. However, use of different valuation models or assumptions may result in different measurement. For financial assets and financial liabilities classified as Level 3, if the inputs used to valuation models have changed, it would have no material impact on gain or loss and other comprehensive income as at December 31, 2025 and 2024.

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

A. Loans to others: None.
B. Provision of endorsements and guarantees to others: Please refer to table 1.
C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to table 2.
D. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more: None.
E. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: None.
F. Significant inter-company transactions during the reporting periods: Please refer to table 3.

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Please refer to table 4.

(3) Information on investments in Mainland China

A. Basic information: None.
B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: None.

14. SEGMENT INFORMATION

(1) General information

Management has determined the reportable operating segments based on the reports reviewed by the Board of Directors that are used to make strategic decisions.

The chairman of the Group considers the business from a career type perspective, and uses the individual operating results in the consolidated statement for the chairman's review.

Three reportable operating segments disclosed by the Group: The main revenue of Farglory Free Trade Zone Co., Ltd. is to operate the business of the aviation free trade port zone. The main revenue of Farglory Logistics Co., Ltd. is rental of the warehouse. The main revenue of Farglory Free Trade Zone Investment Holding Co., Ltd is investment.

(2) Measurement of segment information

The chairman of the Group evaluates the performance of the operating segments based on net profit or loss after tax. Sales between departments are in accordance with the principle of fair transaction.

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Net profit or loss after tax and assets and liabilities of the department reported to the chief operating decision-maker are measured in a consistent manner with the financial statements.

(3) Information about segment profit or loss, assets and liabilities

The segment information provided to the chief operating decision-maker for the reportable segments is as follows:

	Farglory Free Trade Zone Co., Ltd.	Farglory Logistics Co., Ltd.	Farglory Free Trade Zone Investment Holding Co., Ltd.	Adjustment and with-off	Total
Year ended December 31, 2025
Revenue from external customers	$ 4,083,792	$ 59,256	$ -	$ -	$ 4,143,048
Inter-segment revenue	13,785	24,000	1,073,590	(1,111,375)	-
Total segment revenue	$ 4,097,577	$ 83,256	$ 1,073,590	($ 1,111,375)	$ 4,143,048
Interest expense	$ 329,597	$ 3,416	$ 112	($ 36)	$ 333,089
Depreciation and amortisation charge	947,983	17,931	-	-	965,914
Segment income (loss)	$ 1,015,657	$ 21,813	$ 1,027,805	($ 1,037,470)	$ 1,027,805
Segment assets	$ 25,938,943	$ 894,739	$ 11,111,670	($ 10,788,668)	$ 27,156,684
Segment liabilities	$ 15,827,546	$ 225,382	$ 58,531	($ 7,914)	$ 16,103,545
	Farglory Free Trade Zone Co., Ltd.	Farglory Logistics Co., Ltd.	Farglory Free Trade Zone Investment Holding Co., Ltd.	Adjustment and with-off	Total
Year ended December 31, 2024
Revenue from external customers	$ 3,407,270	$ 57,497	$ -	$ -	$ 3,464,767
Inter-segment revenue	13,520	24,191	744,902	(782,613)	-
Total segment revenue	$ 3,420,790	$ 81,688	$ 744,902	($ 782,613)	$ 3,464,767
Interest expense	$ 327,953	$ 3,453	$ 1,372	($ 33)	$ 332,745
Depreciation and amortisation charge	854,940	17,725	-	-	872,665
Segment income (loss)	$ 687,916	$ 21,911	$ 716,913	($ 708,781)	$ 717,959
Segment assets	$ 25,368,278	$ 911,251	$ 10,472,449	($ 9,976,891)	$ 26,775,087
Segment liabilities	$ 16,146,862	$ 163,632	$ 49,844	($ 7,856)	$ 16,352,482

(4) Information on products and services

Please refer to Note 6 (24) for the related information.

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(5) Geographical information

Geographical information for the years ended December 31, 2025 and 2024 is as follows:

	Year ended December 31, 2025		Year ended December 31, 2024
	Revenue	Non-current assets	Revenue	Non-current assets
Taiwan	$ 4,143,048	$ 24,995,023	$ 3,464,767	$ 24,761,150

Non-current assets include property, plant and equipment, right-of-use assets, investment property - net, intangible assets and other non-current assets.

(6) Major customer information

The Group has no single customer whose revenue exceeds 10% of operating revenue for the years ended December 31, 2025 and 2024.

Farglory Free Trade Zone Investment Holding Co., Ltd. and Subsidiaries

Provision of endorsements and guarantees to others

For the year ended December 31, 2025

Table 1
Expressed in thousands of NTD
(Except as otherwise indicated)

Number (Note 1)	Endorser/ guarantor	Party being endorsed/guaranteed		Limit on endorsements/ guarantees provided for a single party (Note 3)	Maximum outstanding endorsement/ guarantee amount as of December 31, 2025	Outstanding endorsement/ guarantee amount at December 31, 2025	Actual amount drawn down	Amount of endorsements/ guarantees secured with collateral	Ratio of accumulated endorsement/ guarantee amount to net asset value of the endorser/ guarantor company	Ceiling on total amount of endorsements/ guarantees provided (Note 4)	Provision of endorsements/ guarantees by parent company to subsidiary	Provision of endorsements/ guarantees by subsidiary to parent company	Provision of endorsements/ guarantees to the party in Mainland China	Footnote
		Company name	Relationship with the endorser/ guarantor (Note 2)

Note 1: 0: The Company
1: Farglory Logistics Co., Ltd.
2: Farglory Free Trade Zone Co., Ltd.

Note 2: The relationship of counterparty of guarantees with the Company:

A company with which it does business.
A company in which the public company directly and indirectly holds more than $50\%$ of the voting shares.
A company that directly and indirectly holds more than $50\%$ of the voting shares in the public company.
Companies in which the public company holds, directly or indirectly, $90\%$ or more of the voting shares may make endorsements/guarantees for each other.
Where a public company fulfills its contractual obligations by providing mutual endorsements/guarantees for another company in the same industry or for joint builders for purposes of undertaking a construction project.
Where all capital contributing shareholders make endorsements/ guarantees for their jointly invested company in proportion to their shareholding percentages.
Where companies in the same industry provide among themselves joint and several securities for a performance guarantee of a sales contract for pre-construction homes pursuant to the Consumer Protection Act for each other.

Note 3: The limit of the Company's guarantee to single company was $80\%$ . However, the limit was $400\%$ of the Company's net asset value to subsidiaries whom was held over $50\%$ by the Company.

Note 4: The limit of total guarantees to all company was $500\%$ of the Company's net asset value.

Farglory Free Trade Zone Investment Holding Co., Ltd. and Subsidiaries

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures)

December 31, 2025

Table 2
Expressed in thousands of NTD
(Except as otherwise indicated)

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account	As of December 31, 2025				Footnote
				Number of shares	Book value	Ownership (%)	Fair value
The Company	Upamc James Bond Money Market Fund	None	Financial asset at fair value through profit or loss - current	1,964,752	$ 34,701	-	$ 34,701

Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities.
Note 2: Leave the column blank if the issuer of marketable securities is non-related party.
Note 3: Fill in the amount after adjusted at fair value and deducted by accumulated impairment for the marketable securities measured at fair value; fill in the acquisition cost or amortised cost deducted by accumulated impairment for the marketable securities not measured at fair value.
Note 4: The number of shares of securities and their amounts pledged as security or pledged for loans and their restrictions on use under some agreements should be stated in the footnote if the securities presented herein have such conditions.

Table 2

Farglory Free Trade Zone Investment Holding Co., Ltd. and Subsidiaries

Significant inter-company transactions during the reporting period

(Only significant transactions exceed NT$10 million will be disclosed)

For the year ended December 31, 2025

Table 3
Expressed in thousands of NTD
(Except as otherwise indicated)

Number (Note 1)	Company name	Counterparty	Relationship (Note 2)	Transaction
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note 3)
0	The Company	Farglory Free Trade Zone Co., Ltd.	1	Management service revenue	$	36,000 Management expenses, based on the common price and condition	0.87%
2	Farglory Free Trade Zone Co., Ltd.	Farglory Logistics Co., Ltd.	3	Cost of services		24,000 Based on the common price and condition	0.58%
2	Farglory Free Trade Zone Co., Ltd.	Farglory Logistics Co., Ltd.	3	Rental revenue		11,436 Based on the common price and condition	0.28%

Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:
0: The Company
1: Farglory Logistics Co., Ltd.
2: Farglory Free Trade Zone Co., Ltd.
Note 2: Relationship between transaction company and counterparty is classified into the following three categories; fill in the number of category each case belongs to.
1. Parent company to subsidiary.
2. Subsidiary to parent company.
3. Subsidiary to subsidiary.
Note 3: Percentage of total consolidated revenues or total assets is calculated using the total consolidated assets at the end of the year when the subject of transaction is an asset/liability, and is calculated by total consolidated revenues during the year when the subject of transaction is a revenue/expense.
Note 4: The Company may decide to disclose or not to disclose transaction details in this table based on the Materiality Principle.

Farglory Free Trade Zone Investment Holding Co., Ltd. and Subsidiaries

Information on investees

For the year ended December 31, 2025

Table 4
Expressed in thousands of NTD
(Except as otherwise indicated)

Investor	Investee	Location	Main business activities	Initial investment amount		Shares held as at December 31, 2025			Net profit (loss) of the investee for the year ended December 31, 2025	Investment income (loss) recognised by the Company for the year ended December 31, 2025	Footnote
				Balance as at December 31, 2025	Balance as at December 31, 2024	Number of shares	Ownership (%)	Book value
The Company	Farglory Free Trade Zone Co., Ltd.	Taiwan	Operating and managing concession freight park	$ 7,436,237	$ 7,436,237	461,000,000	100	$ 10,111,398	$ 1,015,657	$ 1,015,657	None
The Company	Farglory Logistics Co., Ltd.	Taiwan	Logistics and warehouse business	854,648	854,648	50,000,000	100	669,357	21,813	21,813	"
The Company	Innotech Logistics Co., Ltd.	Taiwan	Logistics business	77,000	77,000	7,700,000	9.63	79,099	12,438	1,477	Note

Note: The investment gains from Xinke Smart Logistics are derived from the evaluation of financial statements audited by other accountants.

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Farglory FTZ — Audit Report / Information 2026

52490_rns_2026-05-14_85bdd695-1699-44e8-b9b3-76cf5cd84ee7.pdf

Opinion

Basis for opinion

Key audit matters

Key Audit Matter: Timing of Revenue Recognition for Customer Contracts

Description

How our audit addressed the matter:

Other matter – Reference to the audits of other auditors

Other matter – Parent company only financial reports

Responsibilities of management and those charged with governance for the consolidated financial statements

Auditors' responsibilities for the audit of the consolidated financial statements

FARGLORY FREE TRADE ZONE INVESTMENT HOLDING CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2025 AND 2024

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS, EXCEPT FOR EARNINGS PER SHARE)

FARGLORY FREE TRADE ZONE INVESTMENT HOLDING CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

YEARS ENDED DECEMBER 31, 2025 AND 2024

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

FARGLORY FREE TRADE ZONE INVESTMENT HOLDING CO., LTD. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

1. HISTORY AND ORGANIZATION

2. THE DATE OF AUTHORISATION FOR ISSUANCE OF THE FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORISATION

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

4. SUMMARY OF MATERIAL ACCOUNTING POLICIES

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY

6. DETAILS OF SIGNIFICANT ACCOUNTS

(12) Short-term borrowings

(13) Short-term notes and bills payable

(14) Other payables

(15) Other current liabilities

(16) Long-term borrowings

(17) Other non-current liabilities

(18) Pensions

(19) Share capital

(20) Capital surplus

(21) Retained earnings

(22) Transactions with non-controlling interest

F. Collateral provided to related parties

(4) Key management compensation

8. PLEDGED ASSETS

10. SIGNIFICANT DISASTER LOSS

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

12. OTHERS

(1) Capital management

(2) Financial instruments

B. Financial risk management policies

C. Significant financial risks and degrees of financial risks

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

(2) Information on investees

(3) Information on investments in Mainland China

14. SEGMENT INFORMATION

(1) General information

(2) Measurement of segment information

(3) Information about segment profit or loss, assets and liabilities

(4) Information on products and services

Farglory Free Trade Zone Investment Holding Co., Ltd. and Subsidiaries

Information on investees

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Farglory FTZ Audit Report / Information 2026