FARGLORY FREE TRADE ZONE INVESTMENT HOLDING CO., LTD.
PARENT COMPANY ONLY 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.

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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 parent company only balance sheets of Farglory Free Trade Zone Investment Holding Co., Ltd. (the “Company”) as at December 31, 2025 and 2024, and the related parent company only statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the parent company only 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 parent company only financial statements present fairly, in all material respects, the financial position of the Company as at December 31, 2025 and 2024, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for opinion

We conducted our audits in accordance with the 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 parent company only financial statements section of our report. We are independent of the Company 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. 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 Company’s 2025 parent company only financial statements. These matters were addressed in the context of our audit of the parent company only 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 Company’s 2025 parent company only financial statements are stated as follows:

Investments accounted for using equity method

Refer to Note 4(11) for accounting policy on investments accounted for using equity method, and Note 6(5) for details of investments accounted for using equity method.

On December 31, 2025, the balances of investments in the Company’s subsidiaries, Farglory Free Trade Zone Co., Ltd. and Farglory Logistics Co., Ltd., accounted for using equity method amounted to NT$10,111,398 thousand and NT$669,357 thousand, respectively, and the related investment income amounted to NT$1,015,656 thousand and NT$21,813 thousand, respectively. Because the balance of investments accounted for using equity method constituted 97% of the Company’s total assets as of December 31, 2025, and the investment income constituted 99% of the Company’s income before tax for the year then ended, these companies have significant effects on the Company’s financial statements. Thus, we considered the investments accounted for using equity method, particularly with respect to the impairment of tangible assets of these subsidiaries as this will have an impact on the investment income recognized by the Company, as the key area of focus for this year’s audit. The key audit matter of these subsidiaries is as follows:

Equity Method Investment - Timing of Revenue Recognition from Customer Contracts

Description

The subsidiaries held by Farglory Port Corporation, namely Farglory Free Trade Zone Corporation and Farglory Logistics Corporation, derive their primary revenue from services such as warehousing, tallying, packaging, and leasing. As the timing of revenue recognition for these services significantly impacts the financial statements, we considered the timing of revenue recognition from customer contracts as a key audit matter.

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.

Other matter – Reference to the audits of other auditors

As disclosed in Note 6(4), 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.

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

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

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In preparing the parent company only financial statements, management is responsible for assessing the Company’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 Company or to cease operations, or has no realistic alternative but to do so.

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

Auditors’ responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the parent company only 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 parent company only 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 parent company only 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 Company’s internal control.

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

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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 Company’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 parent company only 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 Company to cease to continue as a going concern.

E. Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the parent company only 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 Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the 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.

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From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements of the 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 parent company only 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 parent company only 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.
PARENT COMPANY ONLY 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)	$ 9,838	-	$ 18,851	-
1110	Financial assets at fair value through profit or loss - current	6(2)	34,701	-	50,012	1
1136	Financial assets at amortised cost - current	6(3)	200,000	2	350,000	3
1180	Accounts receivable - related parties, net	7	3,161	-	3,161	-
1470	Other current assets		80	-	30	-
11XX	Total current assets		247,780	2	422,054	4
Non-current assets
1517	Financial assets at fair value through other comprehensive income - non-current		-	-	100	-
1550	Investments accounted for using equity method	6(4)	10,859,854	98	10,046,657	96
1840	Deferred income tax assets	6(16)	3,958	-	3,564	-
1920	Guarantee deposits paid		78	-	75	-
15XX	Total non-current assets		10,863,890	98	10,050,396	96
1XXX	Total assets		$ 11,111,670	100	$ 10,472,450	100
Liabilities and equity
Current liabilities
2150	Notes payable		$ 844	-	$ 1,115	-
2200	Other payables		28,695	1	20,965	-
2230	Current income tax liabilities		9,802	-	10,551	-
2300	Other current liabilities		305	-	310	-
21XX	Total current liabilities		39,646	1	32,941	-
Non-current liabilities
2640	Net defined benefit liability - non-current	6(5)	18,885	-	16,904	-
2XXX	Total liabilities		58,531	1	49,845	-
Equity
	Share capital	6(6)
3110	Common stock		3,705,529	33	3,632,872	35
	Capital surplus	6(7)
3200	Capital surplus		4,354,546	39	4,354,546	42
	Retained earnings	6(8)
3310	Legal reserve		756,743	7	665,777	6
3350	Unappropriated retained earnings		2,236,321	20	1,769,410	17
3XXX	Total equity		11,053,139	99	10,422,605	100
	Significant contingent liabilities and unrecognised contract commitments	9
	Significant events after the balance sheet date	11
3X2X	Total liabilities and equity		$ 11,111,670	100	$ 10,472,450	100

The accompanying notes are an integral part of these parent company only financial statements.

FARGLORY FREE TRADE ZONE INVESTMENT HOLDING CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(EXRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS, EXCEPT FOR EARNINGS PER SHARE)

	Assets	Notes	2025		2024
			Amount	%	Amount	%
4000	Operating revenue	6(4)(9) and 7	$ 1,073,590	100	$ 744,902	100
5900	Gross profit		1,073,590	100	744,902	100
	Operating expenses
6200	General and administrative expenses	6(5)(14)(15)
			( 40,210)	( 4)	( 36,642)	( 5)
6000	Total operating expenses		( 40,210)	( 4)	( 36,642)	( 5)
6900	Operating profit		1,033,380	96	708,260	95
	Non-operating income and expenses
7100	Interest income	6(10)	2,406	1	1,384	-
7010	Other income	6(11) and 7	90	-	5,886	1
7020	Other gains and losses	6(12)	689	-	12	-
7050	Finance costs	6(13)	( 112)	-	( 1,373)	-
7070	Share of profit or loss of associates and joint ventures accounted for using equity method	6(4)
			1,477	-	820	-
7000	Total non-operating income and expenses		4,550	1	6,729	1
7900	Profit before income tax		1,037,930	97	714,989	96
7950	Income tax (expense) benefit	6(16)	( 10,125)	( 1)	1,924	-
8200	Profit for the year		$ 1,027,805	96	$ 716,913	96
	Other comprehensive income Components of other comprehensive income that will not be reclassified to profit or loss
8311	Losses on remeasurements of defined benefit plan	6(5)
			($ 1,727)	-	($ 5,210)	( 1)
8316	Unrealised gains from investments in equity instruments measured at fair value through other comprehensive income		-	-	5,122	1
8330	Share of other comprehensive income of subsidiaries, associates and joint ventures accounted for using the equity method that will not be reclassified to profit or loss	6(4)
			3,421	-	19,434	3
8349	Income tax related to components of other comprehensive income that will not be reclassified to profit or loss	6(16)
			345	-	1,042	-
8310	Other comprehensive income that will not be reclassified to profit or loss		2,039	-	20,388	3
8300	Total other comprehensive income		$ 2,039	-	$ 20,388	3
8500	Total comprehensive income for the year		$ 1,029,844	96	$ 737,301	99
	Earnings per share (in dollars)	6(17)
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 parent company only financial statements.

FARGLORY FREE TRADE ZONE INVESTMENT HOLDING CO., LTD.
PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(EXRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

	Notes	Share capital-Common stock	Capital surplus	Retained Earnings		Unrealised gains (losses)on financial assetsmeasured at fair valuethrough othercomprehensive income	Total equity
				Legal reserve	Unappropriated retainedearnings
2024
Balance at January 1, 2024		$ 3,363,770	$ 4,308,852	$ 573,601	$ 1,523,771	$ 219,802	$ 9,989,796
Profit for the year		-	-	-	716,913	-	716,913
Other comprehensive income (loss)		-	-	-	( 716 )	21,104	20,388
Total comprehensive income		-	-	-	716,197	21,104	737,301
Not subscribing to the subsidiary's capital increase according to shareholding ratio	6(4)	-	-	-	( 47,447 )	-	( 47,447 )
Disposal of investments in equity instruments designated atfair value through other comprehensive income		-	-	-	71,497	( 71,497 )	-
Reclassification amount from disposal of equity instruments offinancial assets measured at fair value through othercomprehensive income by the investee company		-	-	-	169,409	( 169,409 )	-
Cash acquisition of subsidiary's non-controlling equity interest	6(4)	-	45,694	-	-	-	45,694
Appropriations and distribution of 2023 earnings	6(8)
Legal reserve		-	-	92,176	( 92,176 )	-	-
Cash dividends		-	-	-	( 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
2025
Balance at January 1, 2025		$ 3,632,872	$ 4,354,546	$ 665,777	$ 1,769,410	$ -	$ 10,422,605
Profit for the year		-	-	-	1,027,805	-	1,027,805
Other comprehensive income		-	-	-	2,039	-	2,039
Total comprehensive income		-	-	-	1,029,844	-	1,029,844
Disposal of investments in equity instruments designated atfair value through other comprehensive income		-	-	-	306	-	306
Appropriations and distribution of 2024 earnings	6(8)
Legal reserve		-	-	90,966	( 90,966 )	-	-
Cash dividends		-	-	-	( 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

The accompanying notes are an integral part of these parent company only financial statements.

FARGLORY FREE TRADE ZONE INVESTMENT HOLDING CO., LTD.
PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

	Note	2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax		$ 1,037,930	$ 714,989
Adjustments
Adjustments to reconcile profit (loss)
Interest expense	6(13)	112	1,373
Interest income	6(10)	( 2,406 )	( 1,384 )
Dividend income	6(11)	-	( 31 )
Share of profit of subsidiaries and associates	6(9)
accounted for under equity method		( 1,037,470 )	( 708,782 )
Share of loss of associates accounted for under	6(4)
equity method		( 1,477 )	( 820 )
Valuation gain on financial assets and liabilities	6(2)
measured at fair value through profit or loss		( 689 )	( 12 )
Parent company allocated compensation to subsidiary employees	6(4)
Changes in operating assets and liabilities
Changes in operating assets
Financial assets at fair value through profit or loss		16,000	( 50,000 )
Accounts receivable - related parties, net		-	( 536 )
Other current assets		( 50 )	( 2 )
Changes in operating liabilities
Notes payable		( 271 )	233
Other payables		7,730	( 1,752 )
Other current liabilities		( 5 )	( 7 )
Net defined benefit liability		254	171
Cash inflow (outflow) generated from operations		10,529	( 52,935 )
Interest received		2,406	1,384
Dividends received	6(4)	238,300	321,511
Interest paid		( 112 )	( 1,373 )
Income taxes paid		( 10,923 )	( 7,447 )
Net cash provided by operating activities		240,200	261,140
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from disposal of financial assets at fair value through other comprehensive income	6(3)	406	99,555
Increase in financial assets at amortised cost - current		( 200,000 )	( 350,000 )
Decrease in financial assets at amortised cost - current		350,000	220,000
Increase in investments accounted for under equity method	6(4)	-	( 546,000 )
Capital reduction refund from investee company using the equity method	6(4)	-	680,000
Increase in guarantee deposits paid		( 3 )	-
Net cash provided by investing activities		150,403	103,555
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in short-term borrowings		-	215,000
Decrease in short-term borrowings		-	( 215,000 )
Increase in short-term notes and bills payable		140,000	260,000
Decrease in short-term notes and bills payable		( 140,000 )	( 260,000 )
Cash acquisition of subsidiary’s non-controlling interest	6(4)	-	( 102,799 )
Cash dividends paid	6(8)	( 399,616 )	( 302,739 )
Net cash used in financing activities		( 399,616 )	( 405,538 )
Decrease in cash and cash equivalents		( 9,013 )	( 40,843 )
Cash and cash equivalents at beginning of year		18,851	59,694
Cash and cash equivalents at end of year		$ 9,838	$ 18,851

The accompanying notes are an integral part of these parent company only financial statements.

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FARGLORY FREE TRADE ZONE INVESTMENT HOLDING CO., LTD.
NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS,
EXCEPT AS OTHERWISE INDICATED)

HISTORY AND ORGANISATION

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 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. The Company is mainly engaged in investment holdings.

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

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

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 Company’s financial condition and financial performance based on the Company’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 Company

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 Company’s financial condition and financial performance based on the Company’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
IFRS 19, ‘Subsidiaries without public accountability: disclosures’	January 1, 2027
Amendments to IAS 21, ‘Translation to a Hyperinflationary Presentation Currency’	January 1, 2027

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.

4. SUMMARY OF MATERIAL ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these parent company only financial

statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

The financial statements of this Company are prepared in accordance with the Financial Reporting Standards for issuers of Securities.

(2) Basis of preparation

A. Except for the following items, the parent company only 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 International Financial Reporting Standards, International Accounting Standards, IFRIC® Interpretations, and SIC® Interpretations as endorsed by the FSC (collectively referred herein as the “IFRSs”) requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the parent company only financial statements are disclosed in Note 5.

(3) Foreign currency translation

Items included in the financial statements of the Company are measured using the currency of the primary economic environment in which the Company operates (the “functional currency”). The parent company only financial statements are presented in New Taiwan Dollars, which is the Company’s functional and the Company’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

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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. The Company's foreign exchange gains and losses are presented in the statement of comprehensive income within 'other gains and losses'.

(4) 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;
(c) Assets that are expected to be realised within twelve months from the balance sheet date;
(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;
(c) Liabilities that are to be settled within twelve months from the balance sheet date;
(d) Liabilities for which the repayment date cannot be deferred 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.

(5) 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 Company measures the financial assets at fair value and recognises the transaction costs in profit or loss. The Company subsequently measures the financial assets at fair value, and recognises the gain or loss in profit or loss.

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(6) 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 Company 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. They are initially recognised at fair value plus transaction costs. These financial assets are subsequently remeasured and stated 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 Company and the amount of the dividend can be measured reliably.

(7) 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 Company’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.

C. At initial recognition, the Company 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 Company’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.

(8) Accounts and notes receivable

A. Accounts and notes receivable entitle the Company 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.

(9) Impairment of financial assets

For financial assets at amortised cost, at each reporting date, the Company recognises the impairment provision for 12 months expected credit losses if there has not been a significant

~16~

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 Company recognises the impairment provision for lifetime ECLs.

(10) Derecognition of financial assets

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

(11) Investments accounted for using equity method-subsidiaries

A. Subsidiaries are all entities (including structured entities) controlled by the Company. The Company controls an entity when the Company 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.

B. Unrealised gains or losses occurred from the transactions between the Company and subsidiaries have been eliminated. The accounting policies of the subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Company.

C. The Company's share of its subsidiaries' 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 Company's share of losses in a subsidiary equals or exceeds its interest in the subsidiary, the Company recognise loss continuously in proportion to its ownership.

D. Pursuant to the "Regulations Governing the Preparation of Financial Reports by Securities Issuers," profit (loss) of the current period and other comprehensive income in the parent company only financial statements shall equal to the amount attributable to owners of the parent in the consolidated financial statements. Owners' equity in the parent company only financial statements shall equal to equity attributable to owners of the parent in the consolidated financial statements.

E. Associates are all entities over which the Company has significant influence but not control. Investments in associates are accounted for using the equity method and are initially recognised at cost.

F. The Company'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 Company's share of losses in an associate equals or exceeds its interest in the associate together with any other unsecured receivables, the Company 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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G. 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 Company’s ownership percentage of the associate, the Company recognises the Company’s share of change in equity of the associate in ‘capital surplus’ in proportion to its ownership.

H. Unrealised gains on transactions between the Company and its associates are eliminated to the extent of the Company’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 Company.

I. When the Company 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.

J. At the balance sheet date, the Group performs an impairment test for an investment in an associate when there is an indication that the investment may be impaired. The entire carrying amount of the investment (including goodwill) is tested for impairment as a single asset, by comparing its recoverable amount (higher of value in use and fair value less costs of disposal) with its carrying amount. Any impairment loss recognized forms part of the carrying amount of the investment. Any reversal of impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

(12) Impairment of non-financial assets

The Company 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 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.

(13) 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.

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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.

(14) Derecognition of financial liabilities

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

(15) 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.

(16) 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 plan

For the defined contribution plan, 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 plan

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 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 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 the defined benefit plan 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

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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 Company calculates the number of shares based on the closing price at the previous day of the board meeting resolution.

(17) 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.

(18) Income taxes

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 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 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

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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 Company 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 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.

(19) Dividends

Dividends are recorded in the Company’s financial statements in the period in which they are approved by the Company’s shareholders. Cash dividends are recorded as liabilities; stock dividends are recorded as stock dividends to be distributed and are reclassified to ordinary shares on the effective date of new shares issuance.

(20) Revenue recognition

A. Investment revenue

The Company recognised the share of profit or loss as revenue or cost after acquiring subsidiaries.

B. Sales of services

(a) The Company provides administrative resource and management to subsidiaries. When the service transaction result can be reasonably estimated, the revenue is recognised based on the percentage of completion to service to be provided as of the balance sheet date.

(b) When the outcome of services cannot be estimated reliably, recoverability of costs incurred is considered for revenue recognition. If the costs are likely to be recoverable, revenue is recognised to the extent of costs incurred. If the costs are unlikely to be recoverable, revenue is not recognised and costs incurred are recognised as expense.

CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY

The preparation of the parent company only financial statements requires management to make critical judgements in applying the Company’s accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and

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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. The related information is addressed below:

(1) Critical judgements in applying the Company’s accounting policies
None.

(2) Critical accounting estimates and assumptions
A. Impairment assessment of investments accounted for using equity method
The Company assesses the impairment of an investment accounted for using equity method as soon as there is any indication that it might have been impaired and its carrying amount cannot be recovered. The Company assesses the recoverable amounts of an investment accounted for under the equity method based on the present value of the Company’s share of expected future cash flows of the investee, and analyses the reasonableness of related assumptions.
B. Impairment assessment of tangible assets
The Company 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 Company strategy might cause material impairment on assets in the future.
C. 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 Company recognised deferred tax assets amounting to $3,958.

DETAILS OF SIGNIFICANT ACCOUNTS
(1) Cash
| | December 31, 2025 | December 31, 2024 |
| --- | --- | --- |
| Cash on hand and revolving funds | $ 30 | $ 30 |
| Checking accounts and demand deposits | 9,808 | 18,821 |
| Total | $ 9,838 | $ 18,851 |

A. The Company associates 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 Company has no cash and cash equivalents pledged to others.

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

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

A. The Company recognised net gain of $689 and $12 on financial assets at fair value through profit or loss for the years ended December 31, 2025 and 2024, respectively.
B. The Company has no financial assets at fair value through profit or loss pledged to others as collateral.

(3) Financial assets at amortised cost

Items	December 31, 2025	December 31, 2024
Current items:
Time deposits	$ 200,000	$ 350,000

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	$ 2,136	$ 383

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 Company.
C. Information relating to credit risk of financial assets at amortised cost is provided in Note 12(2).

(4) Long-term equity investment accounted for using equity method

Items	Years ended December 31,
	2025	2024
At January 1	$ 10,046,657	$ 9,665,680
Additions	-	546,000
Cash capital reduction refund from subsidiary	-	( 680,000)
Cash acquisition of non-controlling equity interest in subsidiary	-	102,799
Allocation of employee compensation costs with subsidiary	9,129	6,375
Impact of not subscribing to subsidiary’s capital increase according to shareholding ratio	-	( 47,447)
Acquisition of additional equity in subsidiary	-	45,694
Recognised share of investment profit	1,038,947	709,602
Recognised share of other comprehensive income	3,421	19,434
Appropriation of investees’ earnings	( 238,300)	( 321,480)
At December 31	$ 10,859,854	$ 10,046,657
Name of subsidiary	December 31, 2025	December 31, 2024
Subsidiaries
Farglory Free Trade Zone Co., Ltd.	$ 10,111,398	$ 9,221,416
Farglory Logistics Co., Ltd.	669,357	747,619
Associates
Innotech Logistics Co., Ltd.	79,099	77,622
	$ 10,859,854	$ 10,046,657

A. Details of the Company’s subsidiaries are provided in Note 4(3) of the Company’s consolidated financial statements as of and for the year ended December 31, 2025.

B. The balance of investment accounted for using the equity method on December 31, 2025 and 2024 and the investment gain for the years ended December 31, 2025 and 2024 which were held by the associate, Innotech Logistics Co., Ltd., were based on its financial statements which were audited by other independent auditors.

C. Non-controlling transactions with subsidiaries

(a) The subsidiary, Far Eastern Logistics Co., Ltd., set May 27, 2024, as the base date for its cash capital increase issuance. The Company did not subscribe according to the shareholding ratio, resulting in a 20% reduction in equity. The impact of this transaction on the Company’s shareholders' equity is as follows:

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Consideration paid to non-controlling interest (issuance of new shares) $ 519,000
Carrying amount of non-controlling interest ( 471,553)
Decrease in retained earnings $ 47,447

(b) On October 25, 2024, the Company spent $102,799 in cash to acquire an additional 20% of the issued shares of Far Eastern Business Co., Ltd., a subsidiary. The carrying amount of non-controlling interest in Far Eastern Logistics Co., Ltd. on the acquisition date was $148,493. This transaction reduced non-controlling interest by $148,493 and increased equity attributable to the parent company's owners by $45,694. The impact of this transaction on our company's shareholders' equity is as follows:

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

(5) Pensions

A. (a) The Company 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 Company 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 Company 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 Company will 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	($ 18,885)	($ 16,904)
Fair value of plan assets	-	-
Net defined benefit liability	($ 18,885)	($ 16,904)

	Present value of defined benefit obligations	Fair value of plan assets	Net defined benefit liability
Year ended December 31, 2025
Balance at January 1	($ 16,904)	$ -	($ 16,904)
Current service cost	( 254)	-	( 254)
Interest (expense) income	-	-	-
	( 17,158)	-	( 17,158)
Remeasurements:
Experience adjustments	( 1,727)	-	( 1,727)
Balance at December 31	($ 18,885)	$ -	($ 18,885)
	Present value of defined benefit obligations	Fair value of plan assets	Net defined benefit liability
Year ended December 31, 2024
Balance at January 1	($ 16,831)	$ 5,308	($ 11,523)
Current service cost	( 253)	82	( 171)
Interest (expense) income	-	-	-
	( 17,084)	5,390	( 11,694)
Remeasurements:
Experience adjustments	180	( 5,390)	( 5,210)
Balance at December 31	($ 16,904)	$ -	($ 16,904)

(d) The Bank of Taiwan was commissioned to manage the Fund of the Company'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 securitisation 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 Company has no right to participate in managing and operating that fund and hence the Company 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 ended December 31,
	2025	2024
Discount rate	1.50%	1.50%
Future salary increases	3.00%	3.00%

Assumptions regarding future mortality rate 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 rate
	Increase 1%	Decrease 1%	Increase 1%	Decrease 1%
December 31, 2025
Effect on present value of defined benefit obligation	($ 333)	$ 345	$ 152	($ 149)
December 31, 2024
Effect on present value of defined benefit obligation	($ 353)	$ 369	$ 194	($ 189)

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 plan of the Company for the year ending December 31, 2026 amount to $0.

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

B. (a) Effective July 1, 2005, the Company 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 Company 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 sum upon termination of employment.

(b) The pension costs under the defined contribution pension plan of the Company for the years ended December 31, 2025 and 2024 were $565 and $568, respectively.

(6) Share capital

A. As of December 31, 2025, the Company's authorized capital and 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. To enhance capital and strengthen the financial structure, on June 25, 2024, the Company resolved at the shareholders' meeting to use $269,102 of undistributed earnings to implement a capital increase and issue new shares. Furthermore, the board of directors resolved on July 5, 2024, that the ex-rights base date would be July 30, 2024. The registration changes for these transactions have been completed.

C. To enhance capital and strengthen the financial structure, on June 25, 2025, the Company resolved at the shareholders' meeting to use $72,657 of undistributed earnings to implement a capital increase and issue new shares. Furthermore, the board of directors resolved on July 8, 2025, that the ex-rights base date would be August 5, 2025. The registration changes for these transactions have been completed.

D. Movements in the number of the Company's ordinary 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
December 31	370,552,913	363,287,170

(7) 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. However, capital surplus should not be used to cover

accumulated deficit unless the legal reserve is insufficient.

	Year ended December 31, 2025
	Share premium	Recognition of changes in ownership interest in subsidiaries	Others	Total
January 1 (December 31)	$ 4,308,832	$ 45,694	$ 20	$ 4,354,546
	Year ended December 31, 2024
	Share premium	Recognition of changes in ownership interest in subsidiaries	Others	Total
January 1	$ 4,308,832	$ -	$ 20	$ 4,308,852
Acquisition of additional equity interest in subsidiaries	-	45,694	-	45,694
December 31	$ 4,308,832	$ 45,694	$ 20	$ 4,354,546

(8) 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 take into consideration the capital needs of the Company in the future and long-term financial plan. Under the Company's Articles of Incorporation, if the Company's annual general final accounts has profit after tax for the year, the Company shall offset the profit against accumulated deficit, set aside 10% for legal reserve until the legal reserve equals the total capital stock balance, and then provide or reverse special reserve according to laws or regulations of the authority. The remaining earnings shall be appropriated with the beginning undistributed earnings (including adjusted undistributed earnings). The Board of Directors shall propose the appropriation of retained earnings which shall be reported to the shareholders to distribute shareholders' dividends and bonus. However, the Company can retain adequate earnings and not to appropriate based on the current and future situation when appropriating earnings.

The distribution of dividends will be in the form of stock dividends and cash dividends, the proportion will be based on the investment plan and capital structure. However, cash dividends shall not be higher than 50% of total dividends in principal and their proportion can be adjusted by the 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 meeting 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	$ 0.80
Cash dividends	399,616	1.10	302,739	0.90
Total	$ 563,239		$ 664,017

D. The appropriations of 2025 earnings were 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 on the “Market Observation Post System” of the Taiwan Stock Exchange Corporation.

(9) Operating revenue

	Years ended December 31,
	2025	2024
Revenue from contracts with customers	$ 36,120	$ 36,120
Share of profit of subsidiaries accounted for using the equity method	1,037,470	708,782
Total	$ 1,073,590	$ 744,902

Disaggregation of revenue from contracts with customers

The Company derives revenue from the transfer of services over time in the following major departments:

Year ended December 31, 2025	Farglory Free Trade Zone Co., Ltd	Farglory Logistics Co., Ltd.	Total
Inter-segment revenue	$ 36,000	$ 120	$ 36,120
Timing of revenue recognition
Over time	$ 36,000	$ 120	$ 36,120
Year ended December 31, 2024	Farglory Free Trade Zone Co., Ltd	Farglory Logistics Co., Ltd.	Total
Inter-segment revenue	$ 36,000	$ 120	$ 36,120
Timing of revenue recognition
Over time	$ 36,000	$ 120	$ 36,120

(10) Interest income

	Years ended December 31,
	2025	2024
Interest income from bank deposits	$ 269	$ 1,000
Interest income from financial assets measured at amortised cost	2,136	383
Other interest income	1	1
	$ 2,406	$ 1,384

(11) Other income

	Years ended December 31,
	2025	2024
Dividend income	$ -	$ 31
Settlement and refund of old pension fund account	-	5,819
Other income	90	36
	$ 90	$ 5,886

(12) Other gains and losses

	Years ended December 31,
	2025	2024
Net gain on financial assets at fair value through profit or loss	$ 689	$ 12

(13) Finance costs

	Years ended December 31,
	2025	2024
Interest expense:
Bank deposits	$ -	$ 662
Short-term notes and bills payable	112	711
	$ 112	$ 1,373

(14) Expenses by nature

	Years ended December 31,
	2025	2024
Employee benefit expense	$ 33,906	$ 28,026
Other expenses	6,304	8,616
Operating expenses	$ 40,210	$ 36,642

(15) Employee benefit expense

	Years ended December 31,
	2025	2024
Wages and salaries	$ 18,324	$ 15,253
Labour and health insurance fees	1,360	1,411
Pension costs	819	739
Directors’ remuneration (including travel expense and remuneration)	12,131	9,603
Other personnel expenses	1,272	1,020
	$ 33,906	$ 28,026

As at December 31, 2025 and 2024, the Company had 15 employees, including 7 non-employee directors for both years.

A. In accordance with the Articles of Incorporation of the Company, a ratio of distributable profit of the current year (profit before tax less profit margin before the appropriation of employees’ compensation and directors’ remunerations). The ratio shall be not 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 was accrued at $10,516 (of which $9,129 was distributed to subsidiary employees) and $7,244 (of which $6,375 was distributed to subsidiary employees), respectively; while directors’ remuneration was 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 based on profit for the year ended December 31, 2025. The employees’ compensation and directors’ remuneration resolved by the Board of Directors were $10,516 and $3,155, respectively.

D. Employees' compensation and directors' remuneration for 2024 as resolved by the shareholders 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 and shareholders will be posted in the "Market Observation Post System" at the website of the Taiwan Stock Exchange.

(16) Income taxes

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	$ 399	$ 4,490
Tax on undistributed earnings	9,647	6,217
Prior year income tax under (over) estimation	128	(12,591)
Total current tax	10,174	(1,884)
Deferred tax:
Origination and reversal of temporary differences	(49)	(40)
Income tax expense (benefit)	$ 10,125	($ 1,924)

(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	($ 345)	($ 1,042)

B. Reconciliation between income tax expense and accounting profit:

	Years ended December 31,
	2025	2024
Tax calculated based on profit before tax and statutory rate	$ 207,586	$ 142,998
Expenses disallowed by tax regulation	156	104
Tax exempt income by tax regulation	(207,392)	(142,688)
Tax on undistributed earnings	9,647	6,217
Effect from Alternative Minimum Tax	-	4,036
Prior year income tax underestimation	128	(12,591)
Income tax expense (benefit)	$ 10,125	($ 1,924)

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

	Year ended December 31, 2025
	January 1	Recognised in profit or loss	Recognised in other comprehensive income	December 31
—Deferred tax assets:
Temporary differences:
Pension liabilities	$ 3,381	$ 15	$ 345	$ 3,777
Unused compensated absences	183	(2)	-	181
Total	$ 3,564	$ 49	$ 345	$ 3,958
	Year ended December 31, 2024
	January 1	Recognised in profit or loss	Recognised in other comprehensive income	December 31
—Deferred tax assets:
Temporary differences:
Pension liabilities	$ 2,304	$ 35	$ 1,042	$ 3,381
Unused compensated absences	178	5	-	183
Total	$ 2,482	$ 40	$ 1,042	$ 3,564

D. The Company's income tax returns through 2023 have been assessed and approved by the Tax Authority.

(17) 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
Profit attributable to ordinary shareholders of the parent
Assumed conversion of all dilutive potential ordinary shares	$ 1,027,805	370,553
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	363,287	$ 1.93
Diluted earnings per share
Profit attributable to ordinary shareholders of the parent
Assumed conversion of all dilutive potential ordinary shares	$ 716,913	363,287
Employees’ compensation	-	219
Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	$ 716,913	363,506	$ 1.93

~35~

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

7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and relationship with the Company

Names of related parties	Relationship with the Company
Farglory Free Trade Zone Co., Ltd.	Subsidiary
Farglory Logistics Co., Ltd.	Subsidiary
Farglory International 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 Hualien	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

(2) Significant related party transactions

A. Operating revenue

	Years ended December 31,
	2025	2024
Service revenue:
Farglory Free Trade Zone	$ 36,000	$ 36,000
Farglory Logistics	120	120
	$ 36,120	$ 36,120

Service revenue arose from providing management services to subsidiaries.

B. Receivables from related parties

	December 31, 2025	December 31, 2024
Accounts receivable:
Farglory Free Trade Zone	$ 3,150	$ 3,150
Farglory Logistics	11	11
	$ 3,161	$ 3,161

Accounts receivable due from related parties arose from providing management services to subsidiaries. The prices and conditions were based on the mutual agreement and there was no other similar transaction that can be compared with. The accounts receivable were not past due and not impaired.

C. Endorsements and guarantees provided to related parties

Guaranteed items	Guarantors	Guaranteed companies	December 31, 2025	December 31, 2024
Commercial paper issued through MEGA BILLS	Chao, Wen-Chia	The Company	$ 50,000	$ 50,000
Commercial paper issued through China Bills Finance Corporation	Chao, Wen-Chia	The Company	50,000	50,000
Commercial paper issued through Ta Ching Bills Finance Corporation	Chao, Wen-Chia	The Company	50,000	50,000
Commercial paper issued through International Bills Finance Corporation	Chao, Wen-Chia	The Company	30,000	30,000
Commercial paper issuance limit by Taiwan Cooperative Bills Finance Corporation			100,000	100,000
Entered into a credit contract with Mega International Commercial Bank	Chao, Wen-Chia	The Company	200,000	200,000
Entered into a credit contract with Taipei Fubon Commercial Bank	Chao, Wen-Chia	The Company	100,000	-
Entered into a contract for a syndicated borrowing facility with banks including Mega International Commercial Bank	The Company, and Chao Wen-Chia	Farglory Free Trade Zone Co., Ltd.	2,120,000	2,120,000
Entered into a credit contract with Land Bank of Taiwan	The Company	Farglory Free Trade Zone Co., Ltd.	954,000	954,000
Entered into a credit contract with Land Bank of Taiwan	The Company	Farglory Free Trade Zone Co., Ltd.	2,279,200	2,279,200
Entered into a credit contract with Mega International Commercial Bank	The Company and Chao Wen-Chia	Farglory 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	Farglory Free Trade Zone Co., Ltd.	880,000	880,000

~37~

Guaranteed items	Guarantors	Guaranteed companies	December 31, 2025	December 31, 2024
Entered into a credit contract with Taiwan Cooperative Bank	The Company and Chao Wen-Chia	Farglory Free Trade Zone Co., Ltd.	2,200,000	2,200,000

(3) 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

PLEDGED ASSETS

None.

SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT COMMITMENTS

(1) Contingencies

None.

(2) Commitments

Refer to Note 7(2)C. for details of guarantees to subsidiaries.

SIGNIFICANT DISASTER LOSS

None.

SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

Refer to Notes 6(8) and 6(15).

OTHERS

(1) Capital management

The Company's objectives when managing capital are to safeguard the Company'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 Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

The Company 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 non-current borrowings' as shown in the balance sheet) less cash and cash equivalents. Total capital is calculated as 'equity' as shown in the balance sheet plus net debt. During the year ended December 31, 2025, the Company's strategy, which was unchanged from 2024, was to maintain

the gearing ratio within 40% to 50%. Because the borrowing balance at December 31, 2025 and 2024 were both $0, thus the calculation rate was lower than 5%.

(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
Financial assets at fair value through other comprehensive income
Designation of equity instruments - non-current	-	100
	$ -	$ 100
Financial assets at amortised cost
Cash and cash equivalents	$ 9,838	$ 18,851
Financial assets at amortised cost	200,000	350,000
Accounts receivable - related parties, net	3,161	3,161
Guarantee deposits paid	78	75
	$ 213,077	$ 372,087
Financial liabilities
Financial liabilities at amortised cost
Notes payable	$ 844	$ 1,115
Other payables	28,695	20,965
	$ 29,539	$ 22,080

B. Financial risk management policies

(a) The Company's activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. The Company's overall risk management program focuses on the unpredictability of financial market and seeks to minimise the potential adverse effects on the Company's financial position and financial performance.

(b) Risk management is carried out by the Company treasury department under policies approved by the Board of Directors. The Company treasury identifies, evaluates and hedges financial risks in close cooperation with the Company'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

Price risk

i. The Company is exposed to equity securities price risk from its investments classified on the balance sheet either as financial assets at fair value through other comprehensive income and financial assets at fair value through profit or loss. The Company is not exposed to commodity price risk. To manage its price risk arising from investments in equity securities, the Company has set a stop-loss points and therefore does not expect to incur significant loss from equity price risk.

ii. The Company’s investments in equity securities comprise domestic 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 on equity investment classified as at fair value through other comprehensive income.

Interest rate risk

The Company’s interest on short-term borrowings and short-term notes and bills payable is fixed, thus changes in market interest rate will not have significant effects on future cash flow.

Exchange rate risk

The Company’s primary business is in NTD, thus the fluctuation of exchange rate has no significant effects on the Company’s assets and liabilities.

(b) Credit risk

i. Credit risk refers to the risk of financial loss to the Company arose from default by the clients and mainly arose from counterparties who fail to repay the notes and accounts receivable based on the collection condition.

ii. According to the Company’s credit policy, each local entity in the Company 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

~40~

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.

iii. The Company adopts following assumptions 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 Company adopts the assumption under IFRS 9, that is, the default occurs when the contract payments are past due over 90 days.

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

vi. The Company assesses the impairment losses of the bills receivable and accounts receivable of related parties by means of individual identification. As of December 31, 2025 and 2024, the balance of accounts receivable was $3,161, and the provision for loss was $0.

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

	December 31, 2025
	12 months	Lifetime		Total
		Significant increase in credit risk	Impairment of credit
Financial assets at amortised cost	$ 200,000	$ -	$ -	$ 200,000
	December 31, 2024
	12 months	Lifetime		Total
		Significant increase in credit risk	Impairment of credit
Financial assets at amortised cost	$ 350,000	$ -	$ -	$ 350,000

i. Cash flow forecasting is performed in the operating entities of the Company and aggregated by Company treasury. Company treasury monitors rolling forecasts of the Company'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 Company does not breach

borrowing limits on any of its borrowing facilities. Such forecasting takes into consideration the Company's debt financing plans, covenant compliance, compliance with internal balance sheet ratio targets.

ii. The table below analyses the Company'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	In 1 year	Between 1 and 2 years	Between 2 and 5 years	Over 5 years	Total
Notes payable	$ 844	$ -	$ -	$ -	$ 844
Other payables	28,695	-	-	-	28,695
Non-derivative financial liabilities:
---	---	---	---	---	---
December 31, 2024	In 1 year	Between 1 and 2 years	Between 2 and 5 years	Over 5 years	Total
Notes payable	$ 1,115	$ -	$ -	$ -	$ 1,115
Other payables	20,965	-	-	-	20,965

iii. The Company 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 Company'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 Company's investment in equity investment without active market is included in Level 3.

B. The carrying amounts of financial instruments not measured at fair value (including cash and cash equivalents, accounts receivable - related parties, guarantee deposits paid, short-term borrowings, short-term notes and bills payable, notes payable and other payables) are

approximate to their fair values.

C. 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 are 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
Total	$ 50,012	$ -	$ 100	$ 50,112

D. The methods and assumptions the Company used to measure fair value are as follows:

(a) The instruments the Company 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 Company 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.

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

F. 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

~43~

by applying frequent reviews.

G. 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, 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

December 31, 2025: None.

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

	2025	2024
At January 1	$ 100	$ 100
Reclassified to investments accounted for using the equity method during the year	( 100)	-
At December 31	$ -	$ 100

I. The Company 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. If assumptions from financial assets and liabilities categorized within Level 3 had changed, other comprehensive income would not have been significantly impacted as of 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.

Operating segment information

Not applicable.

~45~

Farglory Free Trade Zone Investment Holding Co., Ltd.

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.

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.

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.

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.

AI assistant

Farglory FTZ Audit Report / Information 2026

52490_rns_2026-05-14_ad7a88e5-77cc-4d94-8e22-858735c01965.pdf

Opinion

Basis for opinion

Key audit matters

Investments accounted for using equity method

Equity Method Investment - Timing of Revenue Recognition from Customer Contracts

Description

Auditors’ responsibilities for the audit of the financial statements

FARGLORY FREE TRADE ZONE INVESTMENT HOLDING CO., LTD.

4. SUMMARY OF MATERIAL ACCOUNTING POLICIES

(8) Retained earnings

(16) Income taxes

7. RELATED PARTY TRANSACTIONS

(2) Financial instruments

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

AI assistant

Farglory FTZ — Audit Report / Information 2026

52490_rns_2026-05-14_ad7a88e5-77cc-4d94-8e22-858735c01965.pdf

Opinion

Basis for opinion

Key audit matters

Investments accounted for using equity method

Equity Method Investment - Timing of Revenue Recognition from Customer Contracts

Description

Auditors’ responsibilities for the audit of the financial statements

FARGLORY FREE TRADE ZONE INVESTMENT HOLDING CO., LTD.

4. SUMMARY OF MATERIAL ACCOUNTING POLICIES

(8) Retained earnings

(16) Income taxes

7. RELATED PARTY TRANSACTIONS

(2) Financial instruments

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

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Farglory FTZ Audit Report / Information 2026