~1~

FORMOSA CHEMICALS & FIBRE CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND
INDEPENDENT AUDITORS' REPORT
DECEMBER 31, 2024 AND 2023

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.

FORMOSA CHEMICALS & FIBRE CORPORATION AND SUBSIDIARIES

INDEX

Items	Pages
Index
Independent Auditors’ Report	1-8
Consolidated Balance Sheets	9-10
Consolidated Statements of Comprehensive Income	11-12
Consolidated Statements of Changes in Equity	13-14
Consolidated Statements of Cash Flows	15-16
Notes to Consolidated Financial Statements	17-105

INDEPENDENT AUDITORS' REPORT TRANSLATED FROM CHINESE

PWCR24000490

To the Board of Directors and Shareholders of Formosa Chemicals & Fibre Corporation

Introduction

We have audited the accompanying consolidated balance sheets of Formosa Chemicals & Fibre Corporation and subsidiaries (the "Group") as at December 31, 2024 and 2023, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of material accounting policies

In our opinion, based on our audits and the reports of other auditors (please refer to the Other matter section), the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2024 and 2023, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect as endorsed by the Financial Supervisory Commission.

Basis for opinion

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

~2~

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Group’s 2024 consolidated financial statements. These matters were addressed in the context of our audit of the consolidated financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

Key audit matters for the Group’s 2024 consolidated financial statements are stated as follows:

Assessment of loss allowance for accounts receivable

Description

Refer to Note 4(11) for accounting policy on accounts receivable, Note 5(2) for uncertainty of accounting estimates and assumptions in relation to impairment of accounts receivable, and Note 6(5) for details of loss allowance for accounts receivable. As of December 31, 2024, the Group’s accounts receivable amounted to NT$25,807,060 thousand, net of loss allowance in the amount of NT$132,137 thousand.

The Group assesses expected credit impairment loss on accounts receivable based on historical experience, forward-looking information and known reason or existing objective evidences. For those accounts which are considered uncollectible, the Company recognises impairment with a credit to accounts receivable. Management evaluates the reasonableness of estimated provision periodically. As the estimation of loss allowance is subject to management’s judgement and business indicators, the amount of provision is based on the collectability of accounts receivable, and considering that accounts receivable and loss allowance are material to the financial statements, we considered the loss allowance for accounts receivable a key audit matter.

How our audit addressed the matter

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

Obtained the overdue aging report used when management assessed the expected credit impairment loss, assessed whether the logic of data source was consistently applied, and tested its accuracy with proper documents.

~3~

Assessed the reasonableness of estimates used by management in calculating expected credit impairment loss and obtained supporting documents, including forward-looking information, disputed accounts, overdue accounts, subsequent collection, and other indicators that would show that the customer would be unable to repay on schedule.
Performed subsequent collection test in order to verify the adequacy of loss allowance provided for accounts receivable.

Evaluation of inventories

Description

Refer to Note 4(14) for accounting policy on inventory valuation, Note 5(2) for accounting estimates and assumption uncertainty in relation to inventory valuation, and Note 6(6) for detailed information on allowance for inventory valuation losses. As of December 31, 2024, the inventory and allowance for inventory valuation losses were NT$44,283,711 thousand and NT$1,973,143 thousand, respectively.

The Group is primarily engaged in the manufacture and sales of petrochemical plastic products, fibers weaving and cords. As the price of petrochemical plastic products is subject to the fluctuations in international crude oil price, and the textile market is competitive, there is a higher risk for inventory valuation loss. The Group recognises inventories at the lower of cost and net realisable value, and the net realisable value is calculated based on average price less selling expenses. Since the net realisable value used in inventory valuation involves subjective judgement and high uncertainty in estimation, and the allowance for inventory valuation losses is material to the financial statements, we considered the allowance for inventory valuation losses 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:

Assessed the reasonableness of policies and procedures on allowance for inventory valuation loss, including the reasonableness of classification of inventory in determining the net realisable value.
Obtained an understanding of the Group’s warehousing control procedures. Reviewed the annual physical inventory count plan and participated in the annual inventory count in order to assess the effectiveness of the classification of inventory and internal control over inventory.

~4~

Checked the method in calculating the net realisable value of inventory and assessed the reasonableness of allowance for valuation loss.

Other matter – Reference to the audits of other auditors

We did not audit the financial statements of certain subsidiaries and investments accounted for under the equity method which were audited by other auditors. Therefore, our opinion expressed herein, insofar as it relates to the amounts included in respect of these subsidiaries and associates, is based solely on the reports of the other auditors. Total assets of these subsidiaries and the balances of these investments accounted for under the equity method amounted to NT$117,558,281 thousand and NT$153,545,065 thousand, constituting 24% and 27% of the consolidated total assets as at December 31, 2024 and 2023, respectively, and operating revenue amounted to NT$5,930,607 thousand and NT$19,942,215 thousand, constituting 2% and 6% of the consolidated total operating revenue for the years then ended, respectively. The comprehensive income recognised from these associates and joint ventures accounted for under the equity method amounted to NT$3,048,887 thousand and NT$11,145,442 thousand, constituting 4% and 62% of the consolidated total comprehensive income for the years ended December 31, 2024 and 2023, respectively.

Other matter – Parent company only financial reports

We have audited and expressed an unmodified opinion on the parent company only financial statements of Formosa Chemicals & Fibre Corporation as at and for the years ended December 31, 2024 and 2023.

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

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

~5~

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

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

Auditors' responsibilities for the audit of the consolidated financial statements

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

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

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

~6~

Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

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

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

~7~

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

Juanlu, Man-Yu
Hsu, Sheng-Chung
For and on Behalf of PricewaterhouseCoopers, Taiwan
March 7, 2025

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

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

~8~

FORMOSA CHEMICALS & FIBRE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2024 AND 2023
(Expressed in thousands of New Taiwan dollars)

Assets	Notes	December 31, 2024		December 31, 2023
		AMOUNT	%	AMOUNT	%
Current assets
1100	Cash and cash equivalents	6(1)	$ 24,382,093	5	$ 23,871,348	4
1110	Financial assets at fair value through profit or loss - current	6(2)	1,846,201	-	1,641,598	-
1120	Current financial assets at fair value through other comprehensive income	6(3)	41,753,770	8	95,446,870	17
1136	Current financial assets at amortised cost	6(4)	3,335,507	1	2,990,071	-
1150	Notes receivable, net	6(5)	4,058,094	1	3,728,103	1
1160	Notes receivable - related parties	6(5) and 7	6,436	-	5,930	-
1170	Accounts receivable, net	6(5)	18,006,271	4	15,892,243	3
1180	Accounts receivable - related parties	6(5) and 7	7,800,789	1	8,350,645	1
1200	Other receivables	7	3,944,155	1	3,861,995	1
1210	Other receivables - related parties	7	-	-	5,247,127	1
130X	Inventory	6(6) and 8	42,310,568	9	44,253,704	8
1470	Other current assets		8,161,576	2	9,616,040	2
11XX	Total current assets		155,605,460	32	214,905,674	38
Non-current assets
1517	Non-current financial assets at fair value through other comprehensive income	6(3)	41,886,530	8	55,926,042	10
1535	Non-current financial assets at amortised cost	6(4) and 8	4,315,532	1	3,937,378	1
1550	Investments accounted for under equity method	6(7)	120,564,041	25	127,554,371	22
1600	Property, plant and equipment	6(8), 7 and 8	152,293,328	31	148,226,306	26
1755	Right-of-use assets	6(9)	1,627,501	-	1,625,153	-
1780	Intangible assets		388,149	-	346,018	-
1840	Deferred income tax assets	6(26)	3,869,223	1	3,541,259	1
1900	Other non-current assets		10,399,863	2	9,808,167	2
15XX	Total non-current assets		335,344,167	68	350,964,694	62
1XXX	Total assets		$ 490,949,627	100	$ 565,870,368	100

(Continued)

FORMOSA CHEMICALS & FIBRE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2024 AND 2023
(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity	Notes	December 31, 2024		December 31, 2023
		AMOUNT	%	AMOUNT	%
Current liabilities
2100	Short-term borrowings	6(10)	$ 36,572,623	7	$ 36,266,613	6
2110	Short-term notes and bills payable	6(10)	32,292,387	7	26,780,338	5
2120	Financial liabilities at fair value through profit or loss - current	6(11)	-	-	479	-
2150	Notes payable		143,917	-	129,325	-
2170	Accounts payable		3,227,902	1	4,613,840	1
2180	Accounts payable - related parties	7	11,874,088	2	10,595,837	2
2200	Other payables	7	9,519,507	2	11,015,004	2
2220	Other payables - related parties	7	2,170,686	-	1,720,591	-
2230	Current income tax liabilities		360,034	-	265,793	-
2280	Current lease liabilities		183,884	-	174,276	-
2320	Long-term liabilities, current portion	6(12)(13)	27,533,694	6	6,875,105	1
2399	Other current liabilities		3,534,925	1	2,788,561	1
21XX	Total current liabilities		127,413,647	26	101,225,762	18
Non-current liabilities
2530	Corporate bonds payable	6(12)	25,900,000	5	36,850,000	6
2540	Long-term borrowings	6(13)	27,500,817	6	38,852,036	7
2570	Deferred income tax liabilities	6(26)	474,680	-	341,653	-
2580	Non-current lease liabilities		805,040	-	808,978	-
2600	Other non-current liabilities	6(14)	3,369,629	1	4,103,223	1
25XX	Total non-current liabilities		58,050,166	12	80,955,890	14
2XXX	Total liabilities		185,463,813	38	182,181,652	32
Equity attributable to owners of parent
	Share capital	6(15)
3110	Common stock		58,611,863	12	58,611,863	10
	Capital surplus	6(16)
3200	Capital surplus		9,313,342	2	9,272,140	1
	Retained earnings	6(17)
3310	Legal reserve		71,867,866	15	70,997,369	13
3320	Special reserve		76,745,060	15	76,602,492	14
3350	Unappropriated retained earnings		35,054,049	7	43,627,704	8
	Other equity interest	6(18)
3400	Other equity interest		21,280,042	4	80,470,908	14
3500	Treasury stocks	6(15)	( 323,952)	-	( 323,952)	-
31XX	Equity attributable to owners of the parent		272,548,270	55	339,258,524	60
36XX	Non-controlling interest		32,937,544	7	44,430,192	8
3XXX	Total equity		305,485,814	62	383,688,716	68
	Significant contingent liabilities and unrecognised contract commitments	9
	Significant events after the balance sheet date	11
3X2X	Total liabilities and equity		$ 490,949,627	100	$ 565,870,368	100

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

FORMOSA CHEMICALS & FIBRE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars, except for earnings per share amount)

	Items	Notes	Year ended December 31
			2024		2023
			AMOUNT	%	AMOUNT	%
4000	Operating revenue	6(19) and 7	$ 348,607,574	100	$ 332,619,533	100
5000	Operating costs	6(6)(14)(24)(25) and 7	( 334,552,632)	( 96)	( 321,195,091)	( 97)
5900	Net operating margin		14,054,942	4	11,424,442	3
	Operating expenses	6(14)(24)(25) and 7
6100	Selling expenses		( 9,602,199)	( 3)	( 8,650,446)	( 2)
6200	General and administrative expenses		( 6,007,525)	( 2)	( 5,824,240)	( 2)
6000	Total operating expenses		( 15,609,724)	( 5)	( 14,474,686)	( 4)
6900	Operating loss		( 1,554,782)	( 1)	( 3,050,244)	( 1)
	Non-operating income and expenses
7100	Interest income	6(20) and 7	766,673	-	925,014	-
7010	Other income	6(21) and 7	2,907,080	1	6,141,185	2
7020	Other gains and losses	6(22)	76,927	-	531,406	-
7050	Finance costs	6(8)(23) and 7	( 3,409,157)	( 1)	( 3,019,054)	( 1)
7060	Share of profit of associates and joint ventures accounted for under equity method	6(7)
			2,150,005	1	6,920,993	2
7000	Total non-operating income and expenses		2,491,528	1	10,436,732	3
7900	Profit before income tax		936,746	-	7,386,488	2
7950	Income tax benefit	6(26)	186,641	-	318,454	-
8200	Profit for the year		$ 1,123,387	-	$ 7,704,942	2
	Other comprehensive (loss) income (net)	6(18)
	Components of other comprehensive (loss) income that will not be reclassified to profit or loss
8311	Actuarial gains on defined benefit plans		$ 107,374	-	$ 24,079	-
8316	Unrealised (losses) gains on financial assets measured at fair value through other comprehensive income		( 68,289,316)	( 19)	7,269,614	2
8320	Share of other comprehensive (loss) income of associates and joint ventures accounted for using equity method		( 6,325,895)	( 2)	4,333,584	1
8310	Other comprehensive (loss) income that will not be reclassified to profit or loss		( 74,507,837)	( 21)	11,627,277	3
		(Continued)

~11~

FORMOSA CHEMICALS & FIBRE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars, except for earnings per share amount)

	Items	Notes	Year ended December 31
			2024		2023
			AMOUNT	%	AMOUNT	%
	Components of other comprehensive income that will be reclassified to profit or loss
8361	Financial statements translation differences of foreign operations		$ 3,636,969	1 ($	1,431,782)	-
8370	Share of other comprehensive income (loss) of associates and joint ventures accounted for under equity method		1,391,442	- (	65,221)	-
8399	Income tax relating to the components of other comprehensive income	6(26)	( 696,012)	-	236,747	-
8360	Other comprehensive income (loss) that will be reclassified to profit or loss		4,332,399	1 (	1,260,256)	-
8300	Total other comprehensive (loss) income for the year		($ 70,175,438)	( 20)	$ 10,367,021	3
8500	Total comprehensive (loss) income for the year		($ 69,052,051)	( 20)	$ 18,071,963	5
	Net income (loss) attributable to:
8610	Owners of the parent		$ 379,411	-	$ 8,548,518	2
8620	Non-controlling interest		743,976	- (	843,576)	-
			$ 1,123,387	-	$ 7,704,942	2
	Total comprehensive income (loss) attributable to:
8710	Owners of the parent		($ 58,591,137)	( 17)	$ 18,674,426	5
8720	Non-controlling interest		( 10,460,914)	( 3)	( 602,463)	-
			($ 69,052,051)	( 20)	$ 18,071,963	5
	Basic earnings per share (in dollars)	6(27)	Before Tax	After Tax	Before Tax	After Tax
9710	Profit for the year from continuing operations		$ 0.16	$ 0.19	$ 1.26	$ 1.32
9720	Non-controlling interest		0.06	0.13 (	0.23 )(	0.14)
	Profit attributable to common shareholders of the parent		$ 0.10	$ 0.06	$ 1.49	$ 1.46
	Assuming shares held by subsidiary are not deemed as treasury stock:
9710	Profit for the year from continuing operations		$ 0.16	$ 0.19	$ 1.26	$ 1.31
	Non-controlling interest		0.07	0.13 (	0.23 )(	0.15)
9750	Profit attributable to common shareholders of the parent		$ 0.09	$ 0.06	$ 1.49	$ 1.46

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

FORMOSA CHEMICALS & FIBRE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
YEARS ENDED DECEMBER 31, 2024 AND 2023
(Expressed in thousands of New Taiwan dollars)

	Equity attributable to owners of the parent
		Retained Earnings				Other Equity Interest				Total
	Notes	Common stock	Total capital surplus, additional paid-in capital	Legal reserve	Special reserve	Unappropriated retained earnings	Financial statements translation differences of foreign operations	Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income	Gains (losses) on hedging instruments	Revaluation surplus	Treasury stocks	Total	Non-controlling interest	Total equity
Year ended December 31, 2023
Balance at January 1, 2023	6(29)	$ 58,611,863	$ 9,246,656	$ 70,224,189	$ 76,461,277	$ 41,405,257	($ 2,930,647)	$ 72,429,555	$ 160	$ 1,002,383	($ 323,952)	$ 326,126,741	$ 47,229,723	$ 373,356,464
Effects of retrospective restatement		-	-	-	-	-	-	-	-	-	-	-	7,668	7,668
Balance at January 1 after adjustments		58,611,863	9,246,656	70,224,189	76,461,277	41,405,257	( 2,930,647)	72,429,555	160	1,002,383	( 323,952)	326,126,741	47,237,391	373,364,132
Profit for the year		-	-	-	-	8,548,518	-	-	-	-	-	8,548,518	843,576	7,704,942
Other comprehensive income (loss) for the year	6(18)	-	-	-	-	134,088	( 1,033,854)	11,017,399	8,275	-	-	10,125,908	241,113	10,367,021
Total comprehensive income (loss)		-	-	-	-	8,682,606	( 1,033,854)	11,017,399	8,275	-	-	18,674,426	602,463	18,071,963
Appropriations of 2022 earnings	6(17)
Legal reserve		-	-	773,180	-	( 773,180)	-	-	-	-	-	-	-	-
Special reserve		-	-	-	141,215	( 141,215)	-	-	-	-	-	-	-	-
Cash dividends		-	-	-	-	( 5,568,127)	-	-	-	-	-	( 5,568,127)	-	( 5,568,127)
Changes in the net interest of associates recognised under the equity method	6(16)(18)	-	180	-	-	22,725	-	( 22,725)	-	-	-	180	-	180
Cash dividends reclassified to capital surplus	6(16)	-	22,168	-	-	-	-	-	-	-	-	22,168	-	22,168
Dividends paid to subsidiaries to adjust capital surplus	6(16)	-	4,324	-	-	-	-	-	-	-	-	4,324	-	4,324
Expired cash dividends reclassified to capital surplus	6(16)	-	( 1,873)	-	-	-	-	-	-	-	-	( 1,873)	-	( 1,873)
Changes in ownership interests in subsidiaries	6(16)	-	685	-	-	-	-	-	-	-	-	685	984	1,669
Disposal of equity instruments measured at fair value through other comprehensive income (loss)		-	-	-	-	( 362)	-	362	-	-	-	-	( 1,413)	( 1,413)
Cash dividends paid by consolidated subsidiaries		-	-	-	-	-	-	-	-	-	-	-	( 2,209,846)	( 2,209,846)
Increase in non-controlling interest-disposal of ownership interests in subsidiaries		-	-	-	-	-	-	-	-	-	-	-	5,539	5,539
Balance at December 31, 2023		$ 58,611,863	$ 9,272,140	$ 70,997,369	$ 76,602,492	$ 43,627,704	($ 3,964,501)	$ 83,424,591	$ 8,435	$ 1,002,383	($ 323,952)	$ 339,258,524	$ 44,430,192	$ 383,688,716

(Continued)

FORMOSA CHEMICALS & FIBRE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

YEARS ENDED DECEMBER 31, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars)

	Notes	Equity attributable to owners of the parent
		Retained Earnings				Other Equity Interest
		Common stock	Total capital surplus, additional paid-in capital	Legal reserve	Special reserve	Unappropriated retained earnings	Financial statements translation differences of foreign operations	Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income	Gains (losses) on hedging instruments	Revaluation surplus	Treasury stocks	Total	Non-controlling interest	Total equity
Year ended December 31, 2024
Balance at January 1, 2024		$ 58,611,863	$ 9,272,140	$ 70,997,369	$ 76,602,492	$ 43,627,704	($ 3,964,501)	$ 83,424,591	$ 8,435	$ 1,002,383	($ 323,952)	$ 339,258,524	$ 44,430,192	$ 383,688,716
Profit for the year		-	-	-	-	379,411	-	-	-	-	-	379,411	743,976	1,123,387
Other comprehensive income (loss) for the year 6(18)		-	-	-	-	160,834	4,058,276	( 63,159,434)	( 30,224)	-	-	( 58,970,548)	( 11,204,890)	( 70,175,438)
Total comprehensive income (loss)		-	-	-	-	540,245	4,058,276	( 63,159,434)	( 30,224)	-	-	( 58,591,137)	( 10,460,914)	( 69,052,051)
Appropriations of 2023 earnings 6(17)
Legal reserve		-	-	870,497	-	( 870,497)	-	-	-	-	-	-	-	-
Special reserve		-	-	-	142,568	( 142,568)	-	-	-	-	-	-	-	-
Cash dividends		-	-	-	-	( 7,326,483)	-	-	-	-	-	( 7,326,483)	-	( 7,326,483)
Changes in the net interest of associates recognised under the equity method	6(16)(18)	-	114	-	-	( 634,746)	-	( 60,430)	-	-	-	( 695,062)	-	( 695,062)
Cash dividends reclassified to capital surplus	6(16)	-	20,695	-	-	-	-	-	-	-	-	20,695	-	20,695
Dividends paid to subsidiaries to adjust capital surplus	6(16)	-	5,689	-	-	-	-	-	-	-	-	5,689	-	5,689
Expired cash dividends reclassified to capital surplus	6(16)	-	( 927)	-	-	-	-	-	-	-	-	( 927)	-	( 927)
Changes in ownership interests in subsidiaries	6(16)	-	6,420	-	-	-	-	-	-	-	-	6,420	56,779	63,199
Disposal of investments in equity instruments designated at fair value through other comprehensive income	6(18)	-	-	-	-	( 946)	-	946	-	-	-	-	( 2,215)	( 2,215)
Difference between consideration and carrying amount of subsidiaries acquired or disposed		-	9,211	-	-	-	-	-	-	-	-	9,211	14,089	23,300
Cash dividends paid by consolidated subsidiaries		-	-	-	-	-	-	-	-	-	-	-	( 912,406)	( 912,406)
Decrease in non-controlling interest-disposal of 6(28) ownership interests in subsidiaries		-	-	-	-	( 138,660)	-	-	-	-	-	( 138,660)	( 187,981)	( 326,641)
Balance at December 31, 2024		$ 58,611,863	$ 9,313,342	$ 71,867,866	$ 76,745,060	$ 35,054,049	$ 93,775	$ 20,205,673	($ 21,789)	$ 1,002,383	($ 323,952)	$ 272,548,270	$ 32,937,544	$ 305,485,814

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

FORMOSA CHEMICALS & FIBRE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2024 AND 2023
(Expressed in thousands of New Taiwan dollars)

	Notes	Year ended December 31
		2024	2023
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax		$ 936,746	$ 7,386,488
Adjustments
Adjustments to reconcile profit (loss)
Depreciation	6(8)(9)(24)	11,322,929	13,162,707
Amortisation	6(24)	3,874,835	4,300,989
Net gain on financial assets and liabilities at fair value through profit or loss	6(22)	( 205,082 )	( 149,426 )
Interest expense	6(23)	3,409,157	3,019,054
Interest income	6(20)	( 766,673 )	( 925,014 )
Dividend income	6(21)	( 1,977,756 )	( 4,938,169 )
Share of profit or loss of associates accounted for under the equity method		( 2,150,005 )	( 6,920,993 )
Impairment loss (gain on reversal of impairment loss) on property, plant and equipment	6(22)	21,353	( 86,002 )
(Gain) loss on disposal and scrap of property, plant and equipment	6(22)	( 23,630 )	53,632
(Gain) loss on disposal of investments	6(22)	( 3,933 )	3,187
Gain on lease modification	6(22)	( 293 )	( 354 )
Changes in operating assets and liabilities
Changes in operating assets
Notes receivable		( 329,991 )	2,822,061
Notes receivable-related parties		( 506 )	2,217
Accounts receivable		( 2,114,028 )	463,231
Accounts receivable-related parties		549,856	( 1,204,854 )
Other receivables		( 132,570 )	725,266
Inventories		1,943,136	4,183,686
Other current assets		1,883,306	( 1,803,026 )
Changes in operating liabilities
Notes payable		14,592	( 35,397 )
Accounts payable		( 1,385,938 )	( 187,624 )
Accounts payable-related parties		1,278,251	( 3,288,691 )
Other payables		( 1,381,473 )	( 637,985 )
Other current liabilities		746,364	( 1,278,797 )
Accrued pension liabilities		( 673,966 )	( 755,256 )
Cash inflow generated from operations		14,834,681	13,910,930
Interest received		817,083	821,006
Dividends received		7,916,641	8,065,897
Interest paid		( 3,378,270 )	( 2,928,994 )
Income tax paid		( 1,025,686 )	( 1,505,392 )
Net cash flows from operating activities		19,164,449	18,363,447

(Continued)

FORMOSA CHEMICALS & FIBRE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2024 AND 2023
(Expressed in thousands of New Taiwan dollars)

	Notes	Year ended December 31
		2024	2023
CASH FLOWS FROM INVESTING ACTIVITIES
Decrease (increase) in other receivables-related parties		$ 5,247,127	($ 2,817,875)
Proceeds from disposal of financial assets at fair value through profit or loss		-	302,743
Acquisition of financial assets at fair value through other comprehensive income		( 88,000 )	( 25,560 )
Proceeds from disposal of financial assets at fair value through other comprehensive income		238	808
Shares returned from reduction in financial assets at fair value through other comprehensive income		3,484	6,848
Acquisition of financial assets at amortised cost		( 723,590 )	( 1,687,209 )
Disposal of financial assets at amortised cost		-	1,575,547
Acquisition of investments accounted for under the equity method	6(7) and 7	( 2,783,043 )	( 2,049,625 )
Proceeds from disposal of investments accounted for under equity method	6(7)	3,933	40,490
Acquisition of property, plant and equipment	6(30)	( 12,430,767 )	( 20,780,694 )
Proceeds from disposal of property, plant and equipment		467,785	147,902
Acquisition of intangible assets		( 746 )	( 6,186 )
Increase in non-current assets		( 4,526,162 )	( 3,324,261 )
Net cash flows used in investing activities		( 14,829,741 )	( 28,617,072 )
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in short-term borrowings		306,010	1,148,726
Increase (decrease) in short-term notes and bills payable		5,512,049	( 6,112,328 )
Increase in other payables-related parties		450,095	247,933
Payment of corporate bonds payable		( 3,800,000 )	( 4,850,000 )
Increase in long-term borrowings		29,468,984	41,739,972
Payment of long-term borrowings		( 28,369,053 )	( 24,516,039 )
Payment of lease liabilities		( 204,575 )	( 190,101 )
(Decrease) increase in other non-current liabilities		( 59,628 )	32,843
Payment of cash dividends	6(30)	( 7,337,173 )	( 5,585,436 )
Payment of expired cash dividends reclassified to capital surplus		( 927 )	( 1,873 )
Payment of cash dividends - non-controlling interest		( 908,722 )	( 2,152,019 )
Acquisition of ownership interests in subsidiaries	6(28)	( 326,641 )	-
Disposal of subsidiary equity	6(28)	24,486	-
Net cash flows used in financing activities		( 5,245,095 )	( 238,322 )
Effect of foreign exchange translations		1,421,132	( 11,116 )
Net increase (decrease) in cash and cash equivalents		510,745	( 10,503,063 )
Cash and cash equivalents at beginning of year		23,871,348	34,374,411
Cash and cash equivalents at end of year		$ 24,382,093	$ 23,871,348

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

~17~

FORMOSA CHEMICALS & FIBRE CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED DECEMBER 31, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars)

1. History and Organisation

Formosa Chemicals & Fibre Corporation (the “Company”) was founded on March 5, 1965. The Company and its subsidiaries (together referred herein as the “Group”) now has eight business divisions, namely First Chemical Division, Petrochemicals Division, Third Chemical Division, Plastics Division, Textile Division, First Fiber Division and its subsidiaries, Second Fiber Division, and Engineering & Construction Division. The Group’s major businesses are production and sales of petrochemical products, including PTA, PS, AN, Butadiene, SM polymer, SM, benzene, toluene, p-xylene (PX) and o-xylene (OX), as well as nylon fiber, and rayon staple fiber. The Group is also engaged in spinning, weaving, dyeing and finishing.

2. The Date of Authorisation for Issuance of the Financial Statements and Procedures for Authorisation

These consolidated financial statements were authorised for issuance by the Board of Directors on March 7, 2025.

3. Application of New Standards, Amendments and Interpretations

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

New standards, interpretations and amendments endorsed by the FSC and became effective from 2024 are as follows:

New Standards, Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IFRS 16, ‘Lease liability in a sale and leaseback’	January 1, 2024
Amendments to IAS 1, ‘Classification of liabilities as current or non-current’	January 1, 2024
Amendments to IAS 1, ‘Non-current liabilities with covenants’	January 1, 2024
Amendments to IAS 7 and IFRS 7, ‘Supplier finance arrangements’	January 1, 2024

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

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

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

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

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

(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 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
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 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
IFRS 18, ‘Presentation and disclosure in financial statements’	January 1, 2027
IFRS 19, ‘Subsidiaries without public accountability: disclosures’	January 1, 2027
Annual Improvements to IFRS Accounting Standards—Volume 11	January 1, 2026

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.

A. Amendments to IFRS 9 and IFRS 7, ‘Amendments to the classification and measurement of financial instruments’

The IASB issued the amendments to:

(a) Clarify the date of recognition and derecognition of some financial assets and liabilities, with a new exception relating to the derecognition of a financial liability (or part of a financial liability) settled through an electronic cash transfer system. Applying the exception, an entity is permitted to derecognise a financial liability at an earlier date if, and only if, the entity has

initiated a payment instruction and specific conditions are met.

The conditions for the exception are that the entity making the payment does not have:
i. the practical ability to withdraw, stop or cancel the payment instruction;
ii. the practical ability to access the cash used for settlement; and
iii. significant settlement risk.

(b) Clarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion, covering contractual terms that can change cash flows based on contingent events (for example, interest rates linked to ESG targets), non-recourse features and contractually-linked instruments.

(c) Add new disclosures for certain instruments with contractual terms that can change cash flows (such as some instruments with features linked to the achievement of environment, social and governance (ESG) targets), including a qualitative description of the nature of the contingent event, quantitative information about the possible changes to contractual cash flows that could result from those contractual terms and the gross carrying amount of financial assets and amortised cost of financial liabilities subject to these contractual terms.

(d) Update the disclosures for equity instruments designated at fair value through other comprehensive income (FVOCI). The entity shall disclose the fair value of each class of investment and is no longer required to disclose the fair value of each investment. In addition, the amendments require the entity to disclose the fair value gain or loss presented in other comprehensive income during the period, showing separately the fair value gain or loss related to investments derecognised during the reporting period and the fair value gain or loss related to investments held at the end of the reporting period; and any transfers of the cumulative gain or loss within equity during the reporting period related to the investments derecognised during that reporting period.

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

(1) Compliance statement

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

~19~

(2) Basis of preparation

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

(a) Financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss.

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

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

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

(3) Basis of consolidation

A. Basis for preparation of consolidated financial statements:

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

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

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

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

~20~

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

B. Subsidiaries included in the consolidated financial statements:

Name of investor	Name of subsidiary	Main business activities	Ownership (%)		Description
			December 31, 2024	December 31, 2023
The Company	Formosa FCFC Carpet Corp.	Spinning, dyeing, printing, finishing and manufacturing synthetic fibre, rug and carpet	100.00	100.00	The Company holds more than 50% of voting rights.
The Company	Formosa Renewable Energy Corp.	Renewable energy technical services	100.00	-	The Company holds more than 50% of voting rights.(Notes 2)
The Company	FCFC Investment Corp. (Cayman)	Investing	100.00	100.00	The Company holds more than 50% of voting rights.
The Company	Formosa Green Power Corp.	Renewable-energy-based electricity retailing	100.00	100.00	The Company holds more than 50% of voting rights.
The Company	Formosa Biomedical Technology Corp.	Manufacturing and sales of cleaner and cosmetics	88.59	88.59	The Company holds more than 50% of voting rights.
The Company	Formosa Identity to Petrochemical Corp.	Wholesale and retail of petrochemical and plastic raw materials	50.00	50.00	The Company has substantial control and thus regards Formosa Identity to Petrochemical Corp. as a subsidiary.

Name of investor	Name of subsidiary	Main business activities	Ownership (%)		Description
			December 31, 2024	December 31, 2023
The Company	Formosa INEOS Chemicals Corp.	Chemistry, international trade of petrochemistry	50.00	50.00	The Company has substantial control and thus regards Formosa INEOS Chemicals Corp. as a subsidiary.
The Company	Chia-Nan Enterprise Corp.	Hydropower	51.00	51.00	The Company holds more than 50% of voting rights.
The Company	Formosa Industries Corp.	Production and marketing of textile, polyester staple fibre, cotton, hydropower	42.50	42.50	The Company has substantial control and thus regards Formosa Industries Corp. as a subsidiary.
The Company	Formosa Taffeta Co., Ltd.	Production and marketing of Polyamine fabric, Polyester fabric, cotton fabric, blended fabric and tire cord fabric	37.40	37.40	The Company has substantial control and thus regards Formosa Taffeta Corp. as a subsidiary.
FCFC Investment Corp. (Cayman)	Formosa Power (Ningbo) Co., Ltd.	Cogeneration power generation business	100.00	100.00	The company holds more than 50% of voting rights through wholly-owned company - FCFC Investment Corp. (Cayman).
FCFC Investment Corp. (Cayman)	Formosa Chemicals & Fibre (Hong Kong) Co., Ltd.	Investing	100.00	100.00	The company holds more than 50% of voting rights through wholly-owned company - FCFC Investment Corp. (Cayman).
Formosa Chemicals & Fibre (Hong Kong) Co., Ltd.	Formosa Chemicals Industries (Ningbo) Co., Ltd.	Producing and marketing of PTA、PS、ABS、Phenol	100.00	100.00	The company holds more than 50% of voting rights through wholly-owned company - FCFC Investment Corp. (Hong Kong).

Name of investor	Name of subsidiary	Main business activities	Ownership (%)		Description
			December 31, 2024	December 31, 2023
Formosa Biomedical Technology Corp.	Hong Jing Resources Corp.	Removal and disposal of waste	90.61	71.00	The Company holds more than 50% of voting rights through an 88.59% voting rights owned company - Formosa Biochemical Technology Corp. (Notes 1)
Formosa Biomedical Technology Corp.	Formosa Biomedical Technology (SAMOA) Co., Ltd.	Investment	100.00	100.00	The Company holds more than 50% of voting rights through an 88.59% voting rights owned company - Formosa Biochemical Technology Corp.
Formosa Biomedical Technology Corp.	Formosa Waters Technology Co., Ltd.	Manufacturing industrial catalyst and wholesale of other chemical products	57.00	57.00	The Company holds more than 50% of voting rights through an 88.59% voting rights owned company - Formosa Biochemical Technology Corp.
Formosa Biomedical Technology Corp.	Formosa Bio & Energy Corp. (Japan)	Manufacturing and sale of battery energy storage systems and related products	57.45	57.45	The Company holds more than 50% of voting rights through an 88.59% voting rights owned company - Formosa Biochemical Technology Corp.

~23~

Name of investor	Name of subsidiary	Main business activities	Ownership (%)		Description
			December 31, 2024	December 31, 2023
Formosa Biomedical Technology Corp.	Ivy Life Sciences Co., Ltd.	Research and development and clinical application of cell therapy technologies	51.00	51.00	The Company holds more than 50% of voting rights through an 88.59% voting rights owned company - Formosa Biochemical Technology Corp.
Formosa Biomedical Technology Corp.	Formosa Eco Life Technology Co., Ltd.	Sales of cleaning supplies	70.00	70.00	The Company holds more than 50% of voting rights through an 88.59% voting rights owned company - Formosa Biochemical Technology Corp.
Formosa Biomedical Technology Corp.	Formosa Biomedical Material Technology Corp.	Immunocyte capture and separation technology applications	52.63	-	The Company holds more than 50% of voting rights through an 88.59% voting rights owned company - Formosa Biochemical Technology Corp. (Notes 3)
Formosa Biomedical Technology (SAMOA) Co., Ltd.	Formosa Biomedical Trading (Shanghai) Co., Ltd.	Importing, exporting and wholesale of healthy food	100.00	100.00	Formosa Biochemical Technology holds more than 50% of voting rights through a 100% owned company- Formosa Biomedical Technology (SAMOA) Co., Ltd.
Formosa Taffeta Co., Ltd.	Formosa Taffeta (Vietnam) Co., Ltd.	Production, processing, sales of yarn spinning, weaving, dyeing and finishing, carpets, curtains and cleaning supplies	100.00	100.00	Formosa Taffeta Co., Ltd. holds more than 50% of voting rights.

Name of investor	Name of subsidiary	Main business activities	Ownership (%)		Description
			December 31, 2024	December 31, 2023
Formosa Taffeta Co., Ltd.	Formosa Development Co., Ltd.	Handling urban land consolidation, housing and building development and rental, new county and community construction and investment, and specific area development	100.00	100.00	Formosa Taffeta Co., Ltd. holds more than 50% of voting rights.
Formosa Taffeta Co., Ltd.	Formosa Taffeta (Hong Kong) Co., Ltd.	Sales of Nylon and Polyamine fabric	100.00	100.00	Formosa Taffeta Co., Ltd. holds more than 50% of voting rights.
Formosa Taffeta Co., Ltd.	Formosa Taffeta (Dong Nai) Co., Ltd.	Manufacturing of nylon and polyester filament products	100.00	100.00	Formosa Taffeta Co., Ltd. holds more than 50% of voting rights.
Formosa Taffeta (Hong Kong) Co., Ltd.	Formosa Taffeta (Changshu) Co., Ltd.	Manufacturing and processing fabric of nylon filament knitted cloth, weaving and dyeing as well as post processing of knitted fabric	100.00	100.00	Formosa Taffeta Co., Ltd. holds more than 50% of voting rights through a 100% owned company - Formosa Taffeta (Hong Kong) Co., Ltd.
Formosa Taffeta (Hong Kong) Co., Ltd.	Formosa Taffeta (Zhong Shan) Co, Ltd.	Manufacturing of nylon and polyester filament greige cloth, coloured cloth, printed cloth and textured processing yarn products	100.00	100.00	Formosa Taffeta Co., Ltd. holds more than 50% of voting rights through a 100% owned company - Formosa Taffeta (Hong Kong) Co., Ltd.
Formosa Development Co., Ltd.	Public More Internation Co., Ltd.	Employment services and temporary worker services	100.00	100.00	Formosa Taffeta Co., Ltd. holds more than 50% of voting rights through a 100% owned company - Formosa Development Co., Ltd.

Note 1: On March 14, 2024, the Board of Directors of the Group’s subsidiary, Formosa Biomedical Technology Corp., resolved to acquire 21.21% equity interest in Hong Jing Resources Corp. for a cash consideration of $326,641. On September 19, 2024, the subsidiary sold 1.60% equity interest in Hong Jing Resources Corp. at a price of $40 per share to employees. The shareholding ratio decreased from 92.21% to 90.61%.

Note 2: On May 9, 2024, the Company was approved by the competent authority to establish Formosa Renewable Energy Corporation with an investment amount of $50,000, and the shareholding ratio was 100%.

Note 3: On November 11, 2024, the Group’s subsidiary, Formosa Biomedical Technology Crop., invested in the establishment of Formosa Biomedical Material Technology Corporation with an investment amount of $50,000, and the shareholding ratio was 100%. Additionally, on November 25, 2024, the board of directors of Formosa Biomedical Material Technology Corporation resolved to increase capital through intangible assets by $45,000. The shareholding ratio decreased from 100% to 52.63%.

C. Subsidiaries not included in the consolidated financial statements: None
D. Adjustments for subsidiaries with different balance sheet dates: None
E. Significant restrictions: None
F. Subsidiaries that have non-controlling interests that are material to the Group:

As of December 31, 2024 and 2023, the non-controlling interest amounted to $32,937,544 and $44,430,187, respectively. The information on non-controlling interest and respective subsidiary is as follows:

Name of subsidiary	Principal place of business	Non-controlling interest
		December 31, 2024		December 31, 2023
		Amount	Ownership (%)	Amount	Ownership (%)
Formosa Taffeta Co., Ltd.	Taiwan	$ 23,000,840	62.60	$ 33,924,622	62.60

Summarised financial information of the subsidiary: Balance sheets

	Formosa Taffeta Co., Ltd.
	December 31, 2024	December 31, 2023
Current assets	$ 15,290,355	$ 16,479,420
Non-current assets	37,071,744	55,185,362
Current liabilities	( 5,964,402)	( 5,675,993)
Non-current liabilities	( 9,487,180)	( 11,636,817)
Total net assets	$ 36,910,517	$ 54,351,972

~27~

Statements of comprehensive income

	Formosa Taffeta Co., Ltd.
	Year ended December 31, 2024	Year ended December 31, 2023
Revenue	$ 28,715,705	$ 28,501,509
Profit before income tax	1,653,567	550,957
Income tax expense	( 163,382)	( 106,403)
Profit for the year	1,490,185	444,554
Other comprehensive (loss) income, net of tax	( 18,106,450)	665,729
Total comprehensive (loss) income for the year	($ 16,616,265)	$ 1,110,283
Statements of cash flows
	Formosa Taffeta Co., Ltd.
	Year ended December 31, 2024	Year ended December 31, 2023
Net cash provided by operating activities	$ 3,308,379	$ 4,092,706
Net cash used in investing activities	( 874,297)	( 1,364,064)
Net cash used in financing activities	( 3,247,575)	( 3,916,306)
Effect of exchange rates on cash and cash equivalents	97,014	( 48,979)
Decrease in cash and cash equivalents	( 716,479)	( 1,236,643)
Cash and cash equivalents, beginning of year	4,241,157	5,477,800
Cash and cash equivalents, end of year	$ 3,524,678	$ 4,241,157

(4) Foreign currency translation

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

A. Foreign currency transactions and balances

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

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

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

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

B. Translation of foreign operations

(a) The operating results and financial position of all the group entities, associates and jointly controlled entities that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

i. Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;

ii. Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and

iii. All resulting exchange differences are recognised in other comprehensive income.

(b) When the foreign operation partially disposed of or sold is a subsidiary, cumulative exchange differences that were recorded in other comprehensive income are proportionately transferred to the non-controlling interest in this foreign operation. In addition, even when the Group retains partial interest in the former foreign subsidiary after losing control of the former foreign subsidiary, such transactions should be accounted for as disposal of all interest in the foreign operation.

(5) Classification of current and non-current items

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

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

(b) Assets held mainly for trading purposes;

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

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

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

(b) Liabilities arising mainly from trading activities;

~28~

(c) Liabilities that are to be settled within twelve months from the balance sheet date;
(d) It does not have the right at the end of the reporting period to defer settlement of the liability at least twelve months after the reporting period.

(6) Cash equivalents

Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Time deposits that meet the definition above and are held for the purpose of meeting short-term cash commitments in operations are classified as cash equivalents.

(7) 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. Financial assets at amortised cost or fair value through other comprehensive income are designated as at fair value through profit or loss at initial recognition when they eliminate or significantly reduce a measurement or recognition inconsistency.
B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognised and derecognised using trade date accounting.
C. At initial recognition, the Group measures the financial assets at fair value and recognises the transaction costs in profit or loss. The Group subsequently measures the financial assets at fair value, and recognises the gain or loss in profit or loss.
D. The Group recognises the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.

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

A. Financial assets at fair value through other comprehensive income comprise equity securities which are not held for trading, and for which the Group has made an irrevocable election at initial recognition to recognise changes in fair value in other comprehensive income and debt instruments which meet all of the following criteria:

(a) The objective of the Group's business model is achieved both by collecting contractual cash flows and selling financial assets; and
(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 fair value through other comprehensive income are recognised and derecognised using trade date accounting.
C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs. The Group subsequently measures the financial assets at fair value:

(a) 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

~29~

flow to the Group and the amount of the dividend can be measured reliably.

(b) Except for the recognition of impairment loss, interest income and gain or loss on foreign exchange which are recognised in profit or loss, the changes in fair value of debt instruments are taken through other comprehensive income. When the financial asset is derecognised, the cumulative gain or loss previously recognised in other comprehensive income is reclassified from equity to profit or loss.

(9) Financial assets at amortised cost

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

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

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

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

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

(10) Accounts and notes receivable

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

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

(11) Impairment of financial assets

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

(12) Derecognition of financial assets

The Group derecognises a financial asset when one of the following conditions is met:

A. The contractual rights to receive the cash flows from the financial asset expire.

B. The contractual rights to receive cash flows of the financial asset have been transferred and the Group has transferred substantially all risks and rewards of ownership of the financial asset.

C. The contractual rights to receive cash flows of the financial asset have been transferred and the

~30~

Group has not retained control of the financial asset.

(13) Leasing arrangements(lessor)-operating leases

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

(14) Inventories

Inventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted-average method. The cost of finished goods and work in process comprises raw materials, direct labour, other direct costs and related production overheads (allocated based on normal operating capacity). It excludes borrowing costs. The item by item approach is used in applying the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and applicable variable selling expenses.

(15) Investments accounted for using equity method /associates

A. Associates are all entities over which the Group has significant influence but not control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for using the equity method and are initially recognised at cost.

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

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

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

E. In the case that an associate issues new shares and the Group does not subscribe or acquire new shares proportionately, which results in a change in the Group's ownership percentage of the associate but maintains significant influence on the associate, then 'capital surplus' and 'investments accounted for under the equity method' shall be adjusted for the increase or decrease of its share of equity interest. If the above condition causes a decrease in the Group's ownership percentage of the associate, in addition to the above adjustment, the amounts previously

~31~

recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately on the same basis as would be required if the relevant assets or liabilities were disposed of.

F. Upon loss of significant influence over an associate, the Group remeasures any investment retained in the former associate at its fair value. Any difference between fair value and carrying amount is recognised in profit or loss.

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

H. When the Group disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognised as capital surplus in relation to the associate are transferred to profit or loss. If it retains significant influence over this associate, the amounts previously recognised as capital surplus in relation to the associate are transferred to profit or loss proportionately.

(16) Property, plant and equipment

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

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

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

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

~32~

~33~

Land improvements 3 ~ 15 years
Buildings 10 ~ 60 years
Machinery and equipment 5 ~ 15 years
Transportation equipment 3 ~ 15 years
Other equipment 2 ~ 15 years

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

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

B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payments are comprised of Fixed payments, less any lease incentives receivable; The Company subsequently measures the lease liability at amortised cost using the interest method and recognises interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognised as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

C. At the commencement date, the right-of-use asset is stated at cost comprising the amount of the initial measurement of lease liability; The right-of-use asset is measured subsequently using the cost model and is depreciated from the commencement date to the earlier of the end of the asset’s useful life or the end of the lease term.

When the lease liability is remeasured, the amount of remeasurement is recognised as an adjustment to the right-of-use asset.

(18) Intangible assets

A. Computer software

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

B. Goodwill

Goodwill arises in a business combination accounted for by applying the acquisition method.

(19) Impairment of non-financial assets

A. The Group assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell or value in use. When the circumstances or reasons for recognising impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortized historical cost would have been if the impairment had not been recognised.

B. The recoverable amounts of goodwill, intangible assets with an indefinite useful life and intangible assets that have not yet been available for use are evaluated periodically. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. Impairment loss of goodwill previously recognised in profit or loss shall not be reversed in the following years.

C. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash-generating units, or groups of cash-generating units, that is/are expected to benefit from the synergies of the business combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes. Goodwill is monitored at the operating segment level.

(20) Borrowings

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

(21) Notes and accounts payable

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

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

(22) Financial liabilities at fair value through profit or loss

A. Financial liabilities are classified in this category of held for trading if acquired principally for the purpose of repurchasing in the short-term. Derivatives are also categorised as financial liabilities held for trading unless they are designated as hedges.

B. At initial recognition, the Group measures the financial liabilities at fair value. All related transaction costs are recognised in profit or loss. The Group subsequently measures these financial liabilities at fair value with any gain or loss recognised in profit or loss.

(23) Bonds payable

Ordinary corporate bonds issued by the Group are initially recognised at fair value less transaction costs. Any difference between the proceeds (net of transaction costs) and the redemption value is presented as an addition to or deduction from bonds payable, which is amortised to profit or loss over the period of bond circulation using the effective interest method as an adjustment to ‘finance costs’.

(24) 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.

~34~

(25) Non-hedging derivatives

Non-hedging derivatives are initially recognised at fair value on the date a derivative contract is entered into and recorded as financial assets or financial liabilities at fair value through profit or loss. They are subsequently remeasured at fair value and the gains or losses are recognised in profit or loss.

(26) Employee benefits

A. Short-term employee benefits

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

B. Pensions

(a) Defined contribution plans

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

(b) Defined benefit plans

i. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Group in current period or prior periods. The liability recognised in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability; when there is no deep market in high-quality corporate bonds, the Group uses interest rates of government bonds (at the balance sheet date) instead.

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

iii. Past service costs are recognised immediately in profit or loss.

C. Employees', directors' and supervisors' remuneration

Employees' remuneration and directors' and supervisors' remuneration are recognised as expense and liability, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates.

~35~

(27) Income tax

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

B. The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company and its subsidiaries operate and generate taxable income. 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 income tax is recognised, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. However, the deferred income tax is not accounted for if it arises from initial recognition of goodwill or of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred income 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 income tax asset is realised or the deferred income tax liability is settled.

D. Deferred income 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 income tax assets are reassessed.

E. Current income tax assets and liabilities are offset and the net amount reported 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. Deferred income tax assets and liabilities are offset on the balance sheet when the entity has the legally enforceable right to offset current tax assets against current tax liabilities and they are levied by the same taxation authority on either the same entity or different entities that intend to settle on a net basis or realise the asset and settle the liability simultaneously.

F. 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.

~36~

(28) Share capital

A. Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or stock options are shown in equity as a deduction, net of tax, from the proceeds.

B. Where the Company repurchases the Company’s equity share capital that has been issued, the consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the Company’s equity holders. Where such shares are subsequently reissued, the difference between their carrying amount and any consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in equity attributable to the Company’s equity holders.

(29) Dividends

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

B. For the shareholders' dividends that should be distributed in cash, the Company’s Board of Directors would be adopted by a majority vote at a meeting of the Board of Directors attended by two-thirds of the total number of directors, and then reported to the shareholders. The provisions of the preceding paragraph that must be resolved by the shareholders' meeting shall not apply.

(30) Revenue recognition

Sales of goods

A. The Group manufactures and sells a variety of petrochemical products, including the spinning, weaving, dyeing and finishing of rayon and nylon fiber. Sales are recognised when control of the products has transferred, being when the products are delivered to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products.

B. The amount of sales revenue recognised is equal to the contract price net of volume discounts and sales discounts and allowances. Volume discounts and sales discounts and allowances are estimated based on historical information, and a refund liability is recognised for expected volume discounts and sales discounts and allowances payable to customers in relation to sales made until the end of the reporting period. The sales usually are made with a credit term of 30 to 120 days. As the time interval between the transfer of committed goods or service and the payment of customer does not exceed one year, the Group does not adjust the transaction price to reflect the time value of money.

C. A receivable is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

~37~

(31) Business combinations

A. The Group uses the acquisition method to account for business combinations. The consideration transferred for an acquisition is measured as the fair value of the assets transferred, liabilities incurred or assumed and equity instruments issued at the acquisition date, plus the fair value of any assets and liabilities resulting from a contingent consideration arrangement. All acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. For each business combination, the Group measures at the acquisition date components of non-controlling interests in the acquiree that are present ownership interests and entitle their holders to the proportionate share of the entity’s net assets in the event of liquidation at either fair value or the present ownership instruments’ proportionate share in the recognised amounts of the acquiree’s identifiable net assets. All other non-controlling interests should be measured at the acquisition-date fair value.

B. The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the fair value of any previous equity interest in the acquiree over the fair value of the identifiable assets acquired and the liabilities assumed is recorded as goodwill at the acquisition date. If the total of consideration transferred, non-controlling interest in the acquiree recognised and the fair value of previously held equity interest in the acquiree is less than the fair value of the identifiable assets acquired and the liabilities assumed, the difference is recognised directly in profit or loss on the acquisition date.

(32) Operating segments

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments.

Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty

The preparation of these consolidated financial statements requires management to make critical judgements in applying the Group’s accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. The information is addressed below:

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

None.

~38~

(2) Critical accounting estimates and assumptions

A. Impairment assessment of accounts receivable

In the process of assessing impairment of accounts receivable, the Group must use judgements and assumptions to determine the collectability of accounts receivable. The collectability is affected by various factors: customers' financial conditions, the Group's internal credit ratings, historical experience, etc. When sales are not expected to be collected, the Group recognises a specific allowance for doubtful receivables after the assessment. The assumptions and estimates of loss allowance provided for accounts receivable are based on concerning future events as that on the balance sheet date. Assumptions and estimates may differ from the actual results which may result in material adjustments.

B. Evaluation of inventories

As inventories are stated at the lower of cost and net realisable value, the Group must determine the net realisable value of inventories on balance sheet date using judgements and estimates. Due to the rapid technology innovation, the Group evaluates the amounts of normal inventory consumption, obsolete inventories or inventories without market selling value on balance sheet date, and writes down the cost of inventories to the net realisable value.

As of December 31, 2024, the carrying amount of inventories was $42,310,568.

Details of Significant Accounts

(1) Cash and cash equivalents

	December 31, 2024	December 31, 2023
Cash on hand and petty cash	$ 43,923	$ 104,929
Checking accounts and demand deposits	6,852,402	10,932,095
Cash equivalents
Time deposits	10,453,621	9,803,030
Bonds repurchased and commercial paper	7,032,147	3,031,294
	$ 24,382,093	$ 23,871,348

A. The Group transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote. Loss allowance is measured using 12-month expected credit losses. For the years ended December 31, 2024 and 2023, the Group did not recognise any loss allowance.

B. The Group repatriated the capital in the amount of US$44,221 thousand in accordance with “The Management, Utilisation, and Taxation of Repatriated Offshore Funds Act” in June 2021. As of December 31, 2024, the undrawn capital amounted to $484,363, which was restricted under the “The Management, Utilisation, and Taxation of Repatriated Offshore Funds Act”. However, according to IFRS Q&A amended by the competent authority on January 5, 2024, the restriction from the Act did not change the nature of deposits, therefore, the capital was still listed in ‘cash and cash equivalent’.

C. The Group participated in the urban renewal project planned for Formosa Plastics Building and entered into a trust contract with Mega International Commercial Bank as well as set the trust accounts. Payments reserved in the trust accounts shall be earmarked, excluding related expenses for payments of construction and taxes, and no payment can be drawn from the trust account during the duration of trust. As of December 31, 2024, the balance of trust accounts was $829,706. As the trust accounts were pledged to others as collateral, they had been classified as “non-current financial assets at amortised cost”.

D. As the Group applied for the government subsidy projects from the Ministry of Economic Affairs, certain demand deposits were pledged as collateral. Cash pledged to others as collateral amounting to $97,317 had been classified as “non-current financial assets at amortised cost”.

E. The Group has no cash and cash equivalents pledged to others.

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

Items	December 31, 2024	December 31, 2023
Financial assets mandatorily measured at fair value through profit or loss
Fund	$ 1,491,063	$ 1,491,063
Valuation adjustments	355,138	150,535
	$ 1,846,201	$ 1,641,598

A. Amounts recognised in profit or loss in relation to financial assets at fair value through profit or loss are listed below:

	For the year ended December 31, 2024	For the year ended December 31, 2023
Financial assets mandatorily measured at fair value through profit or loss
Fund	$ 204,603	$ 147,079

B. Information relating to credit risk of financial assets at fair value through profit or loss is provided in Note 12(2).

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

	December 31, 2024	December 31, 2023
Current items:
Equity instruments
Listed stocks	$ 24,697,876	$ 24,450,527
Unlisted stocks	825,839	825,839
Valuation adjustment	16,230,055	70,170,504
	$ 41,753,770	$ 95,446,870
Non-current items:
Equity instruments
Listed stocks	$ 8,163,126	$ 8,410,475
Unlisted stocks	27,083,732	26,999,276
Valuation adjustment	6,639,672	20,516,291
	$ 41,886,530	$ 55,926,042

A. The Group has elected to classify equity securities investments that are considered to be steady dividend income as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $83,640,300 and $151,372,912 as at December 31, 2024 and 2023, respectively.

B. Amounts recognised in profit or loss and other comprehensive income in relation to the financial assets at fair value through other comprehensive income are listed below:

	For the year ended December 31, 2024	For the year ended December 31, 2023
Equity instruments at fair value through other comprehensive income
Fair value change recognised in other comprehensive (loss) income	($ 68,289,316)	$ 7,269,614
Cumulative losses reclassified to retained earnings due to derecognition (including loss included in non controlling interest)	($ 3,161)	($ 1,775)

C. As of December 31, 2024 and 2023, 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 fair value through other comprehensive income held by the Group were $83,640,300 and $151,372,912, respectively.

D. Information relating to credit risk of financial assets at fair value through other comprehensive income is provided in Note 12(2).

(4) Financial assets at amortised cost

Items	December 31, 2024	December 31, 2023
Current items:
Time deposits with original maturity date of more than three months	$ 3,335,507	$ 2,990,071
Non-current items:
Time deposits	$ 3,388,509	$ 3,937,378
Trust accounts	829,706	-
Restricted deposits	97,317	-
	$ 4,315,532	$ 3,937,378

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

	For the year ended December 31, 2024	For the year ended December 31, 2023
Interest income	$ 293,629	$ 266,043

B. As of December 31, 2024 and 2023, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at amortised cost held by the Group were $7,651,039 and $6,927,449, respectively.

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

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

(5) Notes and accounts receivable

	December 31, 2024	December 31, 2023
Notes receivable	$ 4,058,094	$ 3,728,103
Less: Allowance for uncollectible accounts	-	-
	$ 4,058,094	$ 3,728,103
Notes receivable-related parties	$ 6,436	$ 5,930
Accounts receivable	$ 18,138,408	$ 16,023,232
Less: Allowance for uncollectible accounts	( 132,137)	( 130,989)
	$ 18,006,271	$ 15,892,243
Accounts receivable-related parties	$ 7,800,789	$ 8,350,645

A. As of December 31, 2024 and 2023, accounts receivable and notes receivable were all from contracts with customers. As of January 1, 2023, the balance of receivables from contracts with customers amounted to $30,211,118.

B. As of December 31, 2024 and 2023, 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 Group's notes and accounts receivable were $4,064,530 and $3,734,033 and accounts receivable were $25,807,060 and $24,242,888, respectively.

C. Information relating to credit risk is provided in Note 12(2).

(6) Inventories

	December 31, 2024
	Cost	Allowance for valuation loss	Book value
Raw materials	$ 15,007,403	($ 167,577)	$ 14,839,826
Materials	7,915,708	( 689,777)	7,225,931
Work in progress	7,126,923	( 158,382)	6,968,541
Finished goods	13,874,889	( 957,407)	12,917,482
Others	358,788	-	358,788
	$ 44,283,711	($ 1,973,143)	$ 42,310,568
	December 31, 2023
	Cost	Allowance for valuation loss	Book value
Raw materials	$ 14,036,207	($ 178,018)	$ 13,858,189
Materials	9,027,576	( 648,286)	8,379,290
Work in progress	7,163,833	( 82,326)	7,081,507
Finished goods	15,546,041	( 950,685)	14,595,356
Others	339,362	-	339,362
	$ 46,113,019	($ 1,859,315)	$ 44,253,704

A. Expense and loss incurred on inventories for the years ended December 31, 2024 and 2023 were as follows:

	For the year ended December 31, 2024	For the year ended December 31, 2023
Cost of inventories sold	$ 332,022,607	$ 318,555,980
Loss (gain) on inventory valuation (Note)	110,167	( 518,674)
Idle capacity (including annual survey and work stoppage)	2,189,518	2,972,899
Others	230,340	184,886
	$ 334,552,632	$ 321,195,091

Note: For the year ended December 31, 2023, the disposal of excess inventory resulted in gain

from price recovery of inventory.

B. As of December 31, 2024 and 2023, inventories pledged are described in Note 8.

(7) Investments accounted for using equity method

	December 31, 2024	December 31, 2023
Formosa Heavy Industries Corp.	$ 5,775,112	$ 6,775,494
Formosa Fairway Corp.	-	5,572
Formosa Plastics Transport Corp.	1,400,881	1,278,023
Formosa Petrochemical Corp.	71,636,022	81,037,549
Mai Liao Power Corp.	16,146,749	13,803,883
Hwa Ya Science Park Management Consulting Co., Ltd.	5,060	4,299
Formosa Environmental Technology Corp.	240,481	234,986
Formosa Synthetic Rubber Corp. (Hong Kong)	1,468,190	1,656,499
Formosa Resources Corp.	6,403,506	7,714,129
Formosa Group (Cayman) Corp.	968,838	835,318
Formosa Plastics Construction Corp.	1,015,981	1,051,551
Guo Su Plastic Industry Co., Ltd.	50,768	55,584
FG INC.	3,754,088	3,647,435
Formosa Smart Energy Tech Corp.	4,176,413	1,734,277
Beyoung International Corp.	92,351	93,958
Formosatree Co., Ltd.	235,987	-
Formosa Advanced Technologies Co., Ltd.	4,723,400	5,000,582
Nan Ya Optical Corp.	208,865	176,689
Kuang Yueh Co., Ltd.	1,443,702	1,414,563
Schoeller Textil AG	817,647	1,033,980
	$ 120,564,041	$ 127,554,371

A. Associates

(a) The basic information of the associate that is material to the Group is as follows:

Company name	Principal place of business	Shareholding ratio		Nature of relationship	Method of measurement
		December 31, 2024	December 31, 2023
Formosa Petrochemical Corp.	Taiwan	24.15%	24.15%	Investments accounted for using equity method	Equity method

(b) The summarised financial information of the associate that is material to the Group is shown below:

Balance sheets

	Formosa Petrochemical Corp.
	December 31, 2024	December 31, 2023
Current assets	$ 200,901,284	$ 252,790,537
Non-current assets	160,254,258	153,763,296
Current liabilities	( 44,540,292)	( 43,165,010)
Non-current liabilities	( 19,654,686)	( 27,054,537)
Total net assets	$ 296,960,564	$ 336,334,286
Share in associate’s net assets	$ 71,715,976	$ 81,224,730
Unrealised gain (loss) from sale of upstream transactions	30,765	( 76,462)
eliminations	( 110,719)	( 110,719)
Net differences in share capital
Carrying amount of the associate	$ 71,636,022	$ 81,037,549
Statements of comprehensive income
	Formosa Petrochemical Corp.
	For the year ended December 31, 2024	For the year ended December 31, 2023
Revenue	$ 661,405,434	$ 710,310,293
Profit for the year from continuing operations	$ 5,970,918	$ 21,888,842
Other comprehensive (loss) income, net of tax	( 26,293,192)	12,434,821
Total comprehensive (loss) income	($ 20,322,274)	$ 34,323,663
Dividends received from associates	$ 4,601,600	$ 2,530,880

(c) The carrying amount of the Group's interests in all individually immaterial associates and the Group's share of the operating results are summarised below:

As of December 31, 2024 and 2023, the carrying amount of the Group's individually immaterial associates amounted to $48,928,019 and $46,516,822, respectively.

	For the year ended December 31, 2024	For the year ended December 31, 2023
Profit for the year from continuing operations	$ 3,699,634	$ 8,352,868
Other comprehensive income, net of tax	2,865,364	3,319,556
Total comprehensive income	$ 6,564,998	$ 11,672,424

(d) The fair value of the Group's associates which have quoted market price was as follows:

	December 31, 2024	December 31, 2023
Formosa Petrochemical Corp.	$ 79,492,633	$ 185,674,544
Kuang Yueh Co., Ltd.	1,861,035	2,093,665
Formosa Advanced Technologies Co., Ltd.	3,839,598	5,310,083
	$ 85,193,266	$ 193,078,292

B. On June 8, 2022, the Group's subsidiary, Formosa Biomedical Technology Corp., increased its investment in Formosa Lithium Iron Oxide Corp. in the amount of $3,797, and the shareholding ratio increased from 15.14% to 29.61%. Accordingly, financial assets at fair value through other comprehensive income were transferred to investments accounted for using equity method. In addition, Formosa Biomedical Technology Corp., participated in its cash capital increase in proportion to its original ownership on December 23, 2022. The investment amounted to$ 260,480. In order to improve working capital, the Board of Directors of Formosa Biomedical Technology Corp. resolved to transfer its 26,049 thousand shares of Formosa Lithium Iron Oxide Corp. to the related party, Formosa Smart Energy Tech Corp. on May 31, 2023. The difference of $3,187 between the proceeds from disposal amounting to $40,490 and the book value of $43,677 (net of accumulated impairment losses of $175,492) was recognised as loss on disposal of investments.

C. On May 5, 2022, the Board of Directors of the Group resolved to invest $1,000,000 and$ 750,000 in Formosa Smart Energy Tech Corp. in May 2022 and August 2023, respectively, and the shareholding ratio was 25%. On May 3, 2024, the Board of Directors of the Group resolved to increase its investment in Formosa Smart Energy Tech Corp. by $2,500,000 in proportion to its original ownership of 25%.

D. On November 3, 2023, the Board of Directors of the Group resolved to increase its investment in Formosa Plastics Construction Corp. amounting to $500,000 in proportion to its original ownership of (33.33\%$ .

E. On August 4, 2023, the Board of Directors of the Group resolved to increase its investment in Formosa Resources Corp. amounting to US$25,000 thousand, equivalent to NT$799,625 thousand, in proportion to its original ownership of 25%.

F. On April 11, 2024, the Board of Directors of the Group's subsidiary, Formosa Biomedical Technology Corp., resolved to invest $237,000 in Formosatree Co., Ltd. during April and July 2024, and the shareholding ratio was (30\%$ .

G. On March 25, 2024, the Board of Directors of the Company resolved to sell all of its 4,698 thousand shares of Formosa Fairway Corporation to Chang Gung Medical Technology Co., Ltd. The difference of $3,933 between the proceeds from disposal and the book value was recognised as gain on disposal of investment.

H. As of December 31, 2024 and 2023, no equity investments held by the Group were pledged to others.

(8) Property, plant and equipment

	Land and land improvements	Buildings	Machinery and equipment	Transportation equipment and other equipment	Construction in progress and equipment to be inspected	Total
At January 1, 2024
Cost	$ 12,186,316	$ 52,726,832	$ 323,994,942	$ 12,071,134	$ 41,561,134	$ 442,540,358
Accumulated depreciation and impairment	( 166,554)	( 31,962,459)	( 252,119,362)	( 10,065,677)	-	( 294,314,052)
	$ 12,019,762	$ 20,764,373	$ 71,875,580	$ 2,005,457	$ 41,561,134	$ 148,226,306
2024
Opening net book amount	$ 12,019,762	$ 20,764,373	$ 71,875,580	$ 2,005,457	$ 41,561,134	$ 148,226,306
Additions	-	281,801	899,205	204,598	10,921,968	12,307,572
Disposals	( 218,768)	-	( 106,278)	( 17,779)	( 101,330)	( 444,155)
Reclassifications	71,466	2,610,641	19,690,923	138,036	( 22,389,370)	121,696
Depreciation charge	-	( 1,590,613)	( 9,034,288)	( 478,031)	-	( 11,102,932)
Reversal of impairment loss	77,316	( 41,159)	( 37,467)	( 11)	( 20,032)	( 21,353)
Net exchange differences	61	467,063	1,324,471	30,124	1,384,475	3,206,194
Closing net book amount	$ 11,949,837	$ 22,492,106	$ 84,612,146	$ 1,882,394	$ 31,356,845	$ 152,293,328
At December 31, 2024
Cost	$ 12,039,625	$ 56,484,384	$ 348,075,365	$ 12,352,792	$ 31,376,877	$ 460,329,043
Accumulated depreciation and impairment	( 89,788)	( 33,992,278)	( 263,463,219)	( 10,470,398)	( 20,032)	( 308,035,715)
	$ 11,949,837	$ 22,492,106	$ 84,612,146	$ 1,882,394	$ 31,356,845	$ 152,293,328

~48~

	Land and land improvements	Buildings	Machinery and equipment	Transportation equipment and other equipment	Construction in progress and equipment to be inspected	Total
At January 1, 2023 (As amended)
Cost	$ 12,086,989	$ 50,808,233	$ 321,597,950	$ 12,234,305	$ 36,911,841	$ 433,639,318
Accumulated depreciation and impairment	( 166,727)	( 30,867,088)	( 249,693,537)	( 10,050,823)	-	( 290,778,175)
	$ 11,920,262	$ 19,941,145	$ 71,904,413	$ 2,183,482	$ 36,911,841	$ 142,861,143
2023
Opening net book amount	$ 11,920,262	$ 19,941,145	$ 71,904,413	$ 2,183,482	$ 36,911,841	$ 142,861,143
Additions	-	17,712	615,462	192,943	19,057,667	19,883,784
Disposals	( 5,701)	( 27,628)	( 162,654)	( 5,551)	-	( 201,534)
Reclassifications	105,221	2,617,669	10,956,319	121,229	( 13,971,196)	( 170,758)
Depreciation charge	-	( 1,540,760)	( 10,939,191)	( 476,017)	-	( 12,955,968)
Reversal of impairment loss	-	19,095	66,907	-	-	86,002
Net exchange differences	( 20)	( 262,860)	( 565,676)	( 10,629)	( 437,178)	( 1,276,363)
Closing net book amount	$ 12,019,762	$ 20,764,373	$ 71,875,580	$ 2,005,457	$ 41,561,134	$ 148,226,306
At December 31, 2023
Cost	$ 12,186,316	$ 52,726,832	$ 323,994,942	$ 12,071,134	$ 41,561,134	$ 442,540,358
Accumulated depreciation and impairment	( 166,554)	( 31,962,459)	( 252,119,362)	( 10,065,677)	-	( 294,314,052)
	$ 12,019,762	$ 20,764,373	$ 71,875,580	$ 2,005,457	$ 41,561,134	$ 148,226,306

A. Amount of borrowing costs capitalised as part of property, plant and equipment and the range of the interest rates for such capitalisation are as follows:

	For the years ended December 31,
	2024	2023
Amount capitalised	$ 246,919	$ 317,167
Interest rate	1.39%~5.17%	1.29%~5.37%

B. Under the regulations, land may only be owned by individuals. Thus, the Group has already obtained ownership of the agricultural land for future plant expansion which was acquired by the Group under the name of a third party, who has pledged the full amount to the Company. As of December 31, 2024 and 2023, the pledged amounts were all $817,918.

C. Information about the property, plant and equipment that were pledged to others as collateral is provided in Note 8.

(9) Leasing arrangements-lessee

A. The Group leases various assets including land and buildings. Rental contracts are typically made for periods of 1 to 56 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes.

B. The carrying amount of right-of-use assets and the depreciation charge are as follows:

	December 31, 2024	December 31, 2023
	Carrying amount	Carrying amount
Land	$ 1,507,146	$ 1,464,923
Buildings	119,466	158,970
Transportation equipment	889	1,260
	$ 1,627,501	$ 1,625,153
	For the year ended December 31, 2024	For the year ended December 31, 2023
	Depreciation charge	Depreciation charge
Land	$ 200,083	$ 181,286
Buildings	19,543	25,082
Transportation equipment	371	371
	$ 219,997	$ 206,739

C. For the years ended December 31, 2024 and 2023, the additions to right-of-use assets were $241,587 and $209,073, respectively.

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

	For the year ended December 31, 2024	For the year ended December 31, 2023
Items affecting profit or loss
Interest expense on lease liabilities	$ 14,710	$ 12,132
Expense on short-term lease contracts	91,437	65,564
Expense on variable lease payments	18,485	43,638
Gain on lease modification	293	354

E. For the years ended December 31, 2024 and 2023, the Group's total cash outflow for leases were $329,207 and $311,435, respectively.

~49~

(10) Short-term loans and short-term notes and bills payable

Type of loans	December 31, 2024	Interest rate range	Collateral
Bank overdrafts	$ 257,923	2.30%	None
Bank loans
OA loans	296	5.24%	None
Secured loans	100,000	1.95%~2.11%	Note 8
Unsecured loans	36,214,404	1.65%~6.10%	None
Total short-term loans	$ 36,572,623
Short-term notes and bills payable	$ 32,450,000	1.66%~1.88%	None
Short-term notes and bills payable discount	( 157,613)
Net short-term notes and bills payable	$ 32,292,387
Type of loans	December 31, 2023	Interest rate range	Collateral
Bank overdrafts	$ 613,742	2.65%	None
Bank loans
Secured loans	80,000	1.83%~1.95%	Note 8
Unsecured loans	35,572,871	1.62%~6.70%	None
Total short-term loans	$ 36,266,613
Short-term notes and bills payable	$ 26,850,000	1.40%~1.56%	None
Short-term notes and bills payable discount	( 69,662)
Net short-term notes and bills payable	$ 26,780,338

(11) Financial liabilities at fair value through profit or loss-current

Items	December 31, 2024	December 31, 2023
Financial liabilities mandatorily measured at fair value through profit or loss
Forward foreign exchange contracts	$ -	$ 479

A. Amounts recognised in profit or loss in relation to financial liabilities at fair value through profit or loss are listed below:

Items	For the year ended December 31, 2024	For the year ended December 31, 2023
Forward foreign exchange contracts	$ 479	$ 2,347

B. The non-hedging derivative instruments transaction and contract information are as follows: December 31, 2024: None.

December 31, 2023

Derivative Instruments Liabilities	Contract Amount (Notional Principal) (in thousands)	Contract period
Forward foreign exchange contracts: Taipei Fubon	JPY 94,010	December 2023 - January 2024

The forward exchange contracts are buy and sell JYP to hedge the change of exchange rate due to import and export transactions, but not adopting hedge accounting.

(12) Bonds payable

	December 31, 2024	December 31, 2023
Bonds payable
Domestic unsecured	$ 36,850,000	$ 40,650,000
nonconvertible corporate bonds
Less: Current portion	( 10,950,000)	( 3,800,000)
	$ 25,900,000	$ 36,850,000

The terms of nonconvertible corporate bonds were as follows:

Description	Issuance date	Maturity date	Yield rate (%)	Issued principal amount	December 31, 2024	December 31, 2023	Note
2014
First issued domestic unsecured	2014.1.17	2025.1.17 ~ 2026.1.17	2.03	$ 10,000,000	$ 10,000,000	$ 10,000,000	Serial bonds, to be settled 50%, 50%
nonconvertible corporate bonds
Second issued domestic unsecured	2014.7.4	2023.7.4 ~ 2024.7.4	1.81	1,400,000	-	700,000	Serial bonds, to be settled 50%, 50%
nonconvertible corporate bonds - A
Second issued domestic unsecured	2014.7.4	2028.7.4 ~ 2029.7.4	2.03	4,600,000	4,600,000	4,600,000	Serial bonds, to be settled 50%, 50%
nonconvertible corporate bonds - B
2019
First issued domestic unsecured	2019.5.13	2023.5.13 ~ 2024.5.13	0.75	3,300,000	-	1,650,000	Serial bonds, to be settled 50%, 50%
nonconvertible corporate bonds - A

Description	Issuance date	Maturity date	Yield rate (%)	Issued principal amount	December 31, 2024	December 31, 2023	Note
First issued domestic unsecured nonconvertible corporate bonds - B	2019.5.13	2025.5.13 ~ 2026.5.13	0.83	$ 3,000,000	$ 3,000,000	$ 3,000,000	Serial bonds, to be settled 50%, 50%
First issued domestic unsecured nonconvertible corporate bonds - C	2019.5.13	2028.5.13 ~ 2029.5.13	0.93	700,000	700,000	700,000	Serial bonds, to be settled 50%, 50%
2020
First issued domestic unsecured nonconvertible corporate bonds - A	2020.9.3	2024.9.3 ~ 2025.9.3	0.52	2,900,000	1,450,000	2,900,000	Serial bonds, to be settled 50%, 50%
First issued domestic unsecured nonconvertible corporate bonds - B	2020.9.3	2026.9.3 ~ 2027.9.3	0.60	5,200,000	5,200,000	5,200,000	Serial bonds, to be settled 50%, 50%
First issued domestic unsecured nonconvertible corporate bonds - C	2020.9.3	2029.9.3 ~ 2030.9.3	0.67	1,900,000	1,900,000	1,900,000	Serial bonds, to be settled 50%, 50%
2021
First issued domestic unsecured nonconvertible corporate bonds - A	2021.5.10	2025.5.10 ~ 2026.5.10	0.48	6,000,000	6,000,000	6,000,000	Serial bonds, to be settled 50%, 50%
First issued domestic unsecured nonconvertible corporate bonds - B	2021.5.10	2027.5.10 ~ 2028.5.10	0.56	4,000,000	4,000,000	4,000,000	Serial bonds, to be settled 50%, 50%
Less: Current portion of bonds payable					36,850,000	40,650,000
					( 10,950,000)	( 3,800,000)
					$ 25,900,000	$ 36,850,000

~52~

(13) Long-term bank loans and notes payable

Type of loans	Borrowing period/repayment term	Interest rate range	Collateral	December 31, 2024
Long-term bank loans
Unsecured loans
Taipei Fubon Bank	Jul. 14, 2023 ~ Jul. 14, 2028, each 50% of principal is payable starting from 4 years and 5 years after the first drawdown	LIBOR+0.78% (if TAIFX is higher than LIBOR+0.42%, the difference between TAIFX and LIBOR+0.42% is payable by the borrower)	None	$ 6,597,269
First Commercial Bank	Jul. 15, 2020 ~ Jul. 15, 2025, the first payment (2023) is 4 years after the first drawdown and principal is payable semi-annually in 5 installments	3.04%	"	695,130
Mega International Commercial Bank	Dec. 13, 2021 ~ Dec. 13, 2026, the first payment (2024) is 4 years after the first drawdown and principal is payable semi-annually in 5 installments	2.50%	"	4,295,690
The Export-Import Bank of China	May. 25, 2022 ~ Oct. 16, 2026, principal payable at maturity date	2.85%	"	7,296,422
Bank of Taiwan	Sep. 25, 2023 ~ Sep. 12, 2025, principal payable at maturity date	1.75%	"	6,000,000
Taiwan Cooperative Bank	Jul. 26, 2023 ~ Jul. 26, 2025, principal payable at maturity date	1.84%	"	11,000,000

~53~

Type of loans	Borrowing period/repayment term	Interest rate range	Collateral	December 31, 2024
Hua Nan Commercial Bank	Mar. 13, 2024 ~ Mar. 13, 2026, principal payable at maturity date	2.00%	None	$ 1,500,000
First Commercial Bank	Jun. 5, 2024 ~ Jun. 5, 2026, principal payable at maturity date	1.97%	"	2,000,000
Sino Pac Bank	Sep. 12, 2024 ~ Sep. 12, 2026, payable in full at maturity	2.09%	"	300,000
E.SUN Bank	Jul. 11, 2024 ~ Jul. 9, 2027, payable in full at maturity	2.04%	"	1,000,000
China Trust Bank	Sep. 6, 2024 ~ Sep. 6, 2026, payable in full at maturity	2.08%	"	400,000
KGI Bank	Aug. 6, 2024 ~ Aug. 6, 2026, payable in full at maturity	2.04%	"	1,000,000
Bangkok Bank	Dec. 4, 2023 ~ Dec. 2, 2025, payable in full at maturity	2.08%	"	400,000
Mega International Commercial Bank	Jun. 21, 2024 ~ Jun. 21, 2026, payable in full at maturity	2.12%	"	400,000
Far Eastern International Bank	Sep. 20, 2024 ~ Sep. 15, 2027, payable in full at maturity	2.05%	"	1,200,000
Less: Current portion of long-term loans				44,084,511
(				16,583,694)
$				27,500,817

Type of loans	Borrowing period/repayment term	Interest rate range	Collateral	December 31, 2023
Long-term bank loans
Unsecured loans
Taipei Fubon Bank	Jul. 14, 2023 ~ Jul. 14, 2028, each 50% of principal is payable starting from 4 years and 5 years after the first drawdown	LIBOR+0.78% (if TAIFX is higher than LIBOR+0.42%, the difference between TAIFX and LIBOR+0.42% is payable by the borrower)	None	$ 6,192,912
First Commercial Bank	Jul. 15, 2020 ~ Jul. 15, 2025, the first payment (2023) is 4 years after the first drawdown and principal is payable semi-annually in 5 installments	1 to 5 years (including 5 years) rate of LPR-0.8125%	"	1,322,941
Mega International Commercial Bank	Dec. 13, 2021 ~ Dec. 13, 2026, the first payment (2024) is 4 years after the first drawdown and principal is payable semi-annually in 5 installments	1 to 5 years (including 5 years) rate of LPR-1.35%	"	4,568,172
The Export-Import Bank of China	May 25, 2022 ~ Oct. 16, 2026, principal payable at maturity date	2.80%~2.90%	"	6,943,116
Bank of Taiwan	Jul. 28, 2023 ~ Jul. 26, 2025, principal payable at maturity date	1.63%	"	2,000,000
Taiwan Cooperative Bank	Jul. 26, 2023 ~ Jul. 26, 2025, principal payable at maturity date	1.79%	"	9,000,000
Mizuho Corporate Bank	Jul. 28, 2022 ~ Dec. 15, 2024, principal payable at maturity date	1.77%	"	1,500,000

~55~

Type of loans	Borrowing period/repayment term	Interest rate range	Collateral	December 31, 2023
Hua Nan Commercial Bank	Nov. 13, 2023 ~ Jan. 13, 2025, principal payable at maturity date	1.88%	None	$ 1,500,000
First Commercial Bank	Dec. 5, 2023 ~ Dec. 5, 2024, principal payable at maturity date	1.84%	"	2,000,000
Mizuho Corporate Bank	Aug. 11, 2023 ~ Aug. 11, 2025, principal payable at maturity date	1.97%	"	800,000
Sino Pac Bank	Sep. 12, 2023 ~ Sep. 12, 2025, payable in full at maturity	1.90%	"	300,000
E.SUN Bank	Dec. 15, 2022 ~ Dec. 15, 2025, payable in full at maturity	1.93%	"	200,000
China Trust Bank	Sep. 8, 2023 ~ Sep. 8, 2025, payable in full at maturity	1.85%	"	400,000
Taipei Fubon Bank	Dec. 12, 2023 ~ Jan. 12, 2025, payable in full at maturity	1.93%	"	1,000,000
MUFG Bank	Nov. 13, 2023 ~ Nov. 13 2025, payable in full at maturity	1.96%	"	600,000
KGI Bank	Aug. 10, 2023 ~ Aug. 10, 2025, payable in full at maturity	1.88%	"	1,000,000
Bangkok Bank	Dec. 4, 2023 ~ Dec. 2, 2024, payable in full at maturity	1.93%	"	500,000
Mega International Commercial Bank	Aug. 21, 2023 ~ Jun. 21, 2025, payable in full at maturity	1.93%	"	900,000
Far Eastern International Bank	Sep. 20, 2022 ~ Sep. 15, 2025, payable in full at maturity	1.93%	"	1,200,000
Less: Current portion of long-term loans				41,927,141
				( 3,075,105)
				$ 38,852,036

(14) Pensions

A. (a) The Company and its domestic subsidiaries have a defined benefit pension plan in accordance with the Labor Standards Law, 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 Law. 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 and its domestic subsidiaries contribute 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 and its domestic subsidiaries 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 and its domestic subsidiaries will make contributions for the deficit by next March.

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

	December 31, 2024	December 31, 2023
Present value of defined benefit obligations	$ 7,878,733	$ 8,249,516
Fair value of plan assets	( 4,759,535)	( 4,466,003)
Net defined benefit liability	$ 3,119,198	$ 3,783,513

	Present value of defined benefit obligations	Fair value of plan assets	Net defined benefit liability
Year ended December 31, 2024
Balance at January 1	$ 8,249,516	($ 4,466,003)	$ 3,783,513
Current service cost	41,133	-	41,133
Interest expense (income)	103,119	( 56,410)	46,709
	8,393,768	( 4,522,413)	3,871,355
Remeasurements:
Return on plan assets	-	( 395,311)	( 395,311)
Change in financial assumptions	( 47,819)	-	( 47,819)
Experience adjustments	431,981	-	431,981
	384,162	( 395,311)	( 11,149)
Pension fund contribution	-	( 86,676)	( 86,676)
Paid pension	( 899,197)	244,865	( 654,332)
Balance at December 31	$ 7,878,733	($ 4,759,535)	$ 3,119,198

	Present value of defined benefit obligations	Fair value of plan assets	Net defined benefit liability
Year ended December 31, 2023
Balance at January 1	$ 9,046,037	($ 4,500,627)	$ 4,545,410
Current service cost	55,357	-	55,357
Interest expense (income)	113,075	( 56,880)	56,195
	9,214,469	( 4,557,507)	4,656,962
Remeasurements:
Return on plan assets	-	( 43,281)	( 43,281)
Experience adjustments	( 255,282)	-	( 255,282)
	( 255,282)	( 43,281)	( 298,563)
Pension fund contribution	-	( 92,090)	( 92,090)
Paid pension	( 709,671)	226,875	( 482,796)
Balance at December 31	$ 8,249,516	($ 4,466,003)	$ 3,783,513

(d) The Bank of Taiwan was commissioned to manage the Fund of the Company's and domestic subsidiaries' defined benefit pension plan in accordance with the Fund's annual investment and utilisation plan and the "Regulations for Revenues, Expenditures, Safeguard and Utilisation of the Labor Retirement Fund" (Article 6: The scope of utilisation for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-the-counter, or private placement equity securities, investment in domestic or foreign real estate securitization products, etc.). With regard to the utilization 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 authorized by the Regulator. The Company and domestic subsidiaries have no right to participate in managing and operating that fund and hence the Company and domestic subsidiaries are 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, 2024 and 2023 is given in the Annual Labor Retirement Fund Utilisation Report announced by the government.

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

	Year ended December 31, 2024	Year ended December 31, 2023
Discount rate	1.45%	1.25%
Future salary increases	2.85%	2.85%

Assumptions regarding future mortality experience are set based on actuarial advice in accordance with published statistics and experience in each territory.

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

	Discount rate		Future salary increases
	Increase 0.25%	Decrease 0.25%	Increase 0.35%	Decrease 0.35%
December 31, 2024
Effect on present value of defined benefit obligation	($ 67,330)	$ 69,165	$ 101,463	($ 97,765)
	Discount rate		Future salary increases
	Increase 0.25%	Decrease 0.25%	Increase 0.35%	Decrease 0.35%
December 31, 2023
Effect on present value of defined benefit obligation	($ 79,705)	$ 82,054	$ 119,509	($ 114,757)

The sensitivity analysis above is based on one assumption which changed while the other conditions remain unchanged. In practice, more than one assumption may change all at once. The method of analysing sensitivity and the method of calculating net pension liability in the balance sheet are the same.

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

(f) Expected contributions to the defined benefit pension plans of the Group for the year ending December 31, 2025 amount to $87,944.

B. (a) From July 1, 2005, the Company and its domestic subsidiaries have 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 and its domestic subsidiaries contribute 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 Company's mainland subsidiaries have a defined contribution plan. Monthly contributions to an independent fund administered by the government in accordance with the pension regulations in the People's Republic of China (PRC) are based on certain percentage of employees' monthly salaries and wages. The contribution percentage was 10~20% for the years ended December 31, 2024 and 2023. Other than the monthly contributions, the Group has no further obligations.

~59~

(c) The pension costs under the defined contribution pension plans of the Group for the years ended December 31, 2024 and 2023 were $467,495 and $475,706, respectively.

(15) Capital stock

A. As of December 31, 2024, the Company's authorised and paid-in capital was $58,611,863, and total issued stocks was 5,861,186 thousand shares with a par value of $10 per share. All proceeds from shares issued have been collected.

B. Changes in the treasury stocks for the years ended December 31, 2024 and 2023 are set forth below:

Reason for reacquisition	Subsidiary	For the year ended December 31, 2024
		Beginning shares	Additions	Disposal	Ending shares
Parent company shares held by subsidiaries reclassified from long-term investment to treasury stock	Formosa Taffeta Co.	12,169,610	-	-	12,169,610
		For the year ended December 31, 2023
Reason for reacquisition	Subsidiary	Beginning shares	Additions	Disposal	Ending shares
Parent company shares held by subsidiaries reclassified from long-term investment to treasury stock	Formosa Taffeta Co.	12,169,610	-	-	12,169,610

C. The market value of treasury stocks was $27.3 and $62.3 (in dollars) per share at December 31, 2024 and 2023, respectively.

D. The above treasury stocks of the parent company were purchased by subsidiaries.

(16) 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 Group has no accumulated deficit. Further, the R.O.C. Securities and Exchange Act requires that the amount of capital surplus to be capitalised mentioned above should not exceed 10% of the paid-in capital each year. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

~61~

For the year ended December 31, 2024

	Share premium	Conversion premium of corporate bonds	Treasury share transactions	Effect from net stockholding of associates recognised using equity method	Difference between stock price and book value for disposal or acquisition of subsidiaries	Others
At January 1, 2024	$ 2,710,554	$ 5,514,032	$ 376,454	$ 392,277	$ 303	$ 278,520
Dividends allocated to subsidiaries	-	-	5,689	-	-	-
Effect from net stockholding of associates recognised under the equity method	-	-	-	114	-	-
Changes in ownership interests in subsidiaries	-	-	410	6,010	9,211	-
Expired cash dividends reclassified to capital surplus	-	-	-	-	-	( 927)
Overdue dividends are transferred to capital surplus	-	-	-	-	-	20,695
At December 31, 2024	$ 2,710,554	$ 5,514,032	$ 382,553	$ 398,401	$ 9,514	$ 298,288

For the year ended December 31, 2023

	Share premium	Conversion premium of corporate bonds	Treasury share transactions	Effect from net stockholding of associates recognised using equity method	Difference between stock price and book value for disposal or acquisition of subsidiaries	Others
At January 1, 2023	$ 2,710,554	$ 5,514,032	$ 370,900	$ 392,782	$ 163	$ 258,225
Dividends allocated to subsidiaries	-	-	4,324	-	-	-
Effect from net stockholding of associates recognised under the equity method	-	-	-	180	-	-
Changes in ownership interests in subsidiaries	-	-	1,230	(685)	140	-
Expired cash dividends reclassified to capital surplus	-	-	-	-	-	(1,873)
Overdue dividends are transferred to capital surplus	-	-	-	-	-	-
At December 31, 2023	$ 2,710,554	$ 5,514,032	$ 376,454	$ 392,277	$ 303	$ 278,520

(17) Retained earnings

A. Under the Company's Articles of Incorporation, the current year's earnings, if any, shall first be used to pay all taxes and offset prior years' operating losses and then 10% of the remaining amount shall be set aside as legal reserve. However, if the amount of the legal reserve is equal to the paid-in capital, this provision shall not apply. In addition, the remaining balance is to be set aside as special reserve if necessary. The remaining balance for current year, after allocating for interest on capital, shall be accumulated with remaining balance of previous year and to be distributed as shareholders' bonus proposed by the Board of Directors. The distribution of cash dividends shall be adopted by a majority vote at a meeting of the Board of Directors attended by two-thirds of the total number of directors, and then reported to the shareholders. The distribution of stock dividends shall be reported to the shareholders for resolution.

The special reserve includes:

(a) Reserve for a special purpose;

(b) Investment income recognised under equity method and deferred income tax assets arising from unused investment tax credits which are deemed unrealised and transferred to special reserve. Such investment income and deferred income tax assets are reclassified to unappropriated earnings only when they are realised;

(c) Net unrealised gains from financial instruments transactions. The special reserve for unrealised gains from financial instruments is reduced when the accumulated value of the unrealised gains also decreases; and
(d) Other special reserves as stipulated by other laws.

B. The Company is in the mature stage and the profit is stable. The Board of Directors shall establish the cash dividend or stock dividend percentage. At least 50% of the distributable earnings after deducting the legal reserve, directors' and supervisors' remuneration, employee bonus and special reserves shall be distributed to stockholders. The Company would prefer cash dividends. If the Company requires funds for significant investments or needs to improve its financial structure, part of the dividend will be in the form of stocks which shall not exceed 50% of the total dividends.

C. 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.

D. In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.

E. The appropriations of 2023 and 2022 earnings had been resolved at the stockholders' meeting on June 18, 2024 and May 26, 2023, respectively. Details are as follows:

	For the years ended December 31,
	2023		2022
	Amount	Dividends per share (in dollars)	Amount	Dividends per share (in dollars)
Legal reserve	$ 870,497		$ 773,180
Special reserve	142,568		141,215
Cash dividends	7,326,483	$ 1.25	5,568,127	$ 0.95
	$ 8,339,548		$ 6,482,522

Information about the appropriation of employees' bonus and directors' and supervisors' remuneration by the Company as proposed by the Board of Directors and resolved by the stockholders will be posted in the "Market Observation Post System" at the website of the Taiwan Stock Exchange.

F. The appropriations of 2024 net income was approved by Board of Directors during its meeting on March 7, 2025 as follows:

	For the year ended December 31, 2024
	Amount	Dividends per share (in dollars)
Legal reserve	$ -
Special reserve	-
Cash dividends	2,930,593	$ 0.50
	$ 2,930,593

(18) Other equity items

	Hedging reserve	Unrealised gain	Currency translation	Revaluation surplus	Total
At January 1, 2024	$ 8,435	$ 83,424,591	($ 3,964,501)	$ 1,002,383	$ 80,470,908
Revaluation:
-Group	-	( 56,840,645)	-	-	( 56,840,645)
-Associates	-	( 6,318,789)	-	-	( 6,318,789)
Revaluation transferred to retained earnings:
-Group	-	946	-	-	946
-Associates	-	( 60,430)	-	-	( 60,430)
Cash flow hedges:
-Associates	( 30,224)	-	-	-	( 30,224)
Currency translation differences:
-Group	-	-	3,332,622	-	3,332,622
-Tax of Group	-	-	( 696,012)	-	( 696,012)
-Associates	-	-	1,421,666	-	1,421,666
At December 31, 2024	($ 21,789)	$ 20,205,673	$ 93,775	$ 1,002,383	$ 21,280,042

~65~

	Hedging reserve	Unrealised gain	Currency translation	Revaluation surplus	Total
At January 1, 2023	$ 160	$ 72,429,555	($ 2,930,647)	$ 1,002,383	$ 70,501,451
Revaluation:
–Group	-	6,967,113	-	-	6,967,113
–Associates	-	4,050,286	-	-	4,050,286
Revaluation transferred to retained earnings:
–Group	-	362	-	-	362
–Associates	-	( 22,725)	-	-	( 22,725)
Cash flow hedges:
–Associates	8,275	-	-	-	8,275
Currency translation differences:
–Group	-	-	( 1,197,104)	-	( 1,197,104)
–Tax of Group	-	-	236,747	-	236,747
–Associates	-	-	( 73,497)	-	( 73,497)
At December 31, 2023	$ 8,435	$ 83,424,591	($ 3,964,501)	$ 1,002,383	$ 80,470,908

(19) Operating revenue

	For the years ended December 31,
	2024	2023
Sales revenue	$ 347,771,980	$ 331,797,718
Service revenue	521,900	516,515
Other operating revenue	313,694	305,300
	$ 348,607,574	$ 332,619,533

The Group derives revenue from the transfer of goods and services over time and at a point in time.

(20) Interest income

	For the years ended December 31,
	2024	2023
Interest income from bank deposits	$ 350,638	$ 551,010
Interest income from financial assets measured at amortised cost	293,629	266,043
Interest from current account with others	83,581	48,330
Other interest income	38,825	59,631
	$ 766,673	$ 925,014

(21) Other income

	For the years ended December 31,
	2024	2023
Rent income	$ 123,320	$ 141,485
Dividend income	1,977,756	4,938,169
Other income	806,004	1,061,531
	$ 2,907,080	$ 6,141,185

(22) Other gains and losses

	For the years ended December 31,
	2024	2023
Gain (loss) on disposal of property, plant and equipment	$ 23,630	($ 53,632)
Net currency exchange gain (loss)	228,710	( 295,756)
Net gain on financial assets and liabilities at fair value through profit or loss	205,082	149,426
Gain (loss) on disposals of investments	3,933	( 3,187)
(Loss) reversal of impairment loss recognised in profit, property, plant and equipment	( 21,353)	86,002
Gain on lease modification	293	354
Other losses	( 363,368)	( 414,613)
	$ 76,927	($ 531,406)

(23) Finance costs

	For the years ended December 31,
	2024	2023
Interest expense:
Bank loans	$ 2,861,331	$ 2,526,634
Corporate bonds	446,865	485,623
Current account with others	56,682	44,800
Discount	249,918	243,297
Other interest expenses	41,280	35,867
	3,656,076	3,336,221
Less: Capitalisation of qualifying assets	( 246,919)	( 317,167)
	$ 3,409,157	$ 3,019,054

(24) Expenses by nature

	For the years ended December 31,
	2024	2023
Depreciation charges on property, plant and equipment and right-of-use assets	$ 11,322,929	$ 13,162,707
Employee benefit expense	13,582,916	13,786,239
Amortisation	3,874,835	4,300,989
	$ 28,780,680	$ 31,249,935

(25) Employee benefit expense

	For the years ended December 31,
	2024	2023
Wages and salaries	$ 11,411,256	$ 11,563,189
Labor and health insurance fees	980,531	1,006,794
Pension costs	555,337	587,258
Other personnel expenses	635,792	628,998
	$ 13,582,916	$ 13,786,239

A. In accordance with the Articles of Incorporation of the Company, a ratio of distributable profit before income tax of the current year, after covering accumulated losses, shall be distributed as employees' compensation. The ratio shall not be lower than 0.05% and shall not be higher than 0.5% for employees' compensation.

B. For the years ended December 31, 2024 and 2023, employees' remuneration (bonuses) was accrued at $557 and $8,716, respectively. The aforementioned amount was recognised in salary expenses.

For the years ended December 31, 2024 and 2023, the employees' compensation was estimated and accrued based on approximately 0.1% of the distributable profit.

Employees' compensation for 2023 as resolved by the Board of Directors was in agreement with the amount of $8,716 recognised in profit or loss for 2023. Employees' compensation for 2023 has been distributed.

Information about the appropriations of employees' bonus and directors' and supervisors' remuneration by the Company as proposed by the Board of Directors and resolved by the stockholders will be posted in the "Market Observation Post System" at the website of the Taiwan Stock Exchange.

(26) Income tax

A. Income tax benefit

(a) Components of income tax benefit:

	For the years ended December 31,
	2024	2023
Current tax:
Current tax on profits for the year	$ 762,920	$ 787,456
Land value increment tax included in current income tax	15,924	-
Tax on undistributed surplus earnings	15,541	45,532
Adjustments in respect of prior years	( 101,157)	37,193
Total current tax	693,228	870,181
Deferred tax:
Origination and reversal of temporary differences	( 890,949)	( 1,206,830)
Effect of exchange rate	11,080	18,195
Total deferred tax	( 879,869)	( 1,188,635)
Income tax benefit	($ 186,641)	($ 318,454)

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

	For the years ended December 31,
	2024	2023
Currency translation differences	$ 696,012	($ 236,747)

B. Reconciliation between income tax benefit and accounting profit

	For the years ended December 31,
	2024	2023
Tax calculated based on profit before tax and statutory tax rate	($ 22,939)	$ 750,171
Expenses disallowed by tax regulation	( 579,692)	( 1,133,007)
Effect from loss deduction	513	371
Effect from net operating loss carryforward	196,428	( 292,243)
Realisable changes from deferred tax assets	( 191)	( 1,952)
Effect from investment tax credits	15,924	-
Effect from changes in tax regulation of overseas subsidiaries	-	242,179
Additional tax on undistributed earnings	15,541	45,532
Non-deductible withholding income tax for offshore income	288,932	33,302
Adjustments in respect of prior years	( 101,157)	37,193
Income tax benefit	($ 186,641)	($ 318,454)

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

	For the year ended December 31, 2024
	January 1	Recognised in profit or loss	Recognised in other comprehensive income	December 31
Deferred tax assets:
Temporary differences:
Currency translation differences	$ 842,286	$ -	($ 696,012)	$ 146,274
Unrealised gain from downstream transactions	15,830	( 15,830)	-	-
Loss on inventory	269,028	46,219	-	315,247
Accrued pension liabilities	473,316	( 119,231)	-	354,085
Impairment loss	84,817	4,871	-	89,688
Others	1,036,628	( 14,175)	-	1,022,453
Tax losses	819,354	1,122,122	-	1,941,476
	$ 3,541,259	$ 1,023,976	($ 696,012)	$ 3,869,223
Deferred tax liabilities:
Temporary differences:
Investment income accounted for using equity method	($ 325,309)	($ 7,867)	$ -	($ 333,176)
Depreciation useful life difference	( 15,863)	7,420	-	( 8,443)
Unrealised gains on financial assets	( 469)	469	-	-
Unrealised exchange gain	-	( 38,588)	-	( 38,588)
Others	( 12)	( 94,461)	-	( 94,473)
	($ 341,653)	($ 133,027)	$ -	($ 474,680)
	$ 3,199,606	$ 890,949	($ 696,012)	$ 3,394,543

For the year ended December 31, 2023

	January 1	Recognised in profit or loss	Recognised in other comprehensive income	December 31
Deferred tax assets:
Temporary differences:
Currency translation differences	$ 605,539	$ -	$ 236,747	$ 842,286
Unrealised gain from downstream transactions	-	15,830	-	15,830
Loss on inventory	333,370	( 64,342)	-	269,028
Accrued pension liabilities	555,674	( 82,358)	-	473,316
Impairment loss	153,109	( 68,292)	-	84,817
Others	342,126	694,502	-	1,036,628
Tax losses	149,265	670,089	-	819,354
	$ 2,139,083	$ 1,165,429	$ 236,747	$ 3,541,259
Deferred tax liabilities:
Temporary differences:
Investment income accounted for using equity method	($ 325,309)	$ -	$ -	($ 325,309)
Depreciation useful life difference	( 23,444)	7,581	-	( 15,863)
Unrealised gains on financial assets	( 25,589)	25,120	-	( 469)
Unrealised exchange gain	( 123)	123	-	-
Others	( 8,589)	8,577	-	( 12)
	($ 383,054)	$ 41,401	$ -	($ 341,653)
	$ 1,756,029	$ 1,206,830	$ 236,747	$ 3,199,606

D. Expiration dates of unused tax losses and amounts of unrecognised deferred tax assets are as follows:

Year incurred	Amount filed/ assessed	December 31, 2024
		Unused amount	Tax assets	Expiry year
2015	Assessed	1,584	1,584	2025
2017	Assessed	5,105	5,105	2027
2018	Assessed	2,815	2,815	2028
2019	Assessed	953	953	2029
2020	Assessed	6,548	6,548	2030
2021	Assessed	10,618	10,618	2031
2022	Assessed	501,716	8,224	2027 & 2032
2023	Amount filed	2,862,114	1,853	2028 & 2033
2024	Amount filed	4,363,167	2,656	2029 & 2034
		$ 7,754,620	$ 40,356

Year incurred	Amount filed/ assessed	December 31, 2023
		Unused amount	Tax assets	Expiry year
2014	Assessed	$ 3,876	$ 3,876	2024
2015	Assessed	1,584	1,584	2025
2017	Assessed	5,105	5,105	2027
2018	Assessed	2,815	2,815	2028
2019	Assessed	953	953	2029
2020	Assessed	6,548	6,548	2030
2021	Assessed	10,618	10,618	2031
2022	Amount filed	515,399	8,224	2027 & 2032
2023	Amount filed	631,025	1,853	2028 & 2033
		$ 1,177,923	$ 41,576

E. The amounts of deductible temporary differences that were not recognised as deferred tax assets are as follows:

	December 31, 2024	December 31, 2023
Deductible temporary differences	$ 11,529	$ 15,911

F. The Company's income tax returns through 2022 have been assessed and approved by the Tax Authority, except for the fiscal years 2021 and 2023.

(27) Earnings per share

A. Basic earnings per share

Basic earnings per share is calculated by dividing the profit attributable to ordinary shareholders of the parent by the weighted average number of ordinary shares in issue during the period.

For the year ended December 31, 2024

	Amount		Weighted average number of ordinary shares outstanding (shares in thousands)	Earnings per share (in dollars)
	Before tax	After tax		Before tax	After tax
Basic earnings per share
Consolidated net income	$ 936,746	$ 1,123,387		$ 0.16	$ 0.19
Net income of non-controlling interest	380,661	743,976		0.06	0.13
Profit attributable to ordinary shareholders of the parent	$ 556,085	$ 379,411	5,849,017	$ 0.10	$ 0.06
	For the year ended December 31, 2023
	Amount		Weighted average number of ordinary shares outstanding (shares in thousands)	Earnings per share (in dollars)
	Before tax	After tax		Before tax	After tax
Basic earnings per share
Consolidated net income	$ 7,386,488	$ 7,704,942		$ 1.26	$ 1.32
Net loss of non-controlling interest	( 1,320,689)	( 843,576)		( 0.23)	( 0.14)
Profit attributable to ordinary shareholders of the parent	$ 8,707,177	$ 8,548,518	5,849,017	$ 1.49	$ 1.46

B. Employees' bonus could be distributed in the form of stock. Since there is no significant impact when calculating diluted earnings per share, basic earnings per share equals diluted earnings per share.

C. If stocks of the parent company held by subsidiaries are not treated as treasury stocks, the calculation of basic earnings per share is as follows:

For the year ended December 31, 2024

	Amount		Weighted average number of ordinary shares outstanding (shares in thousands)	Earnings per share (in dollars)
	Before tax	After tax		Before tax	After tax
Basic earnings per share
Consolidated net income	$ 936,746	$ 1,123,387		$ 0.16	$ 0.19
Net income of non-controlling interest	380,661	743,976		0.07	0.13
Profit attributable to ordinary shareholders of the parent	$ 556,085	$ 379,411	5,861,186	$ 0.09	$ 0.06
	For the year ended December 31, 2023
	Amount		Weighted average number of ordinary shares outstanding (shares in thousands)	Earnings per share (in dollars)
	Before tax	After tax		Before tax	After tax
Basic earnings per share
Consolidated net income	$ 7,386,488	$ 7,704,942		$ 1.26	$ 1.31
Net loss of non-controlling interest	( 1,320,689)	( 843,576)		( 0.23)	( 0.15)
Profit attributable to ordinary shareholders of the parent	$ 8,707,177	$ 8,548,518	5,861,186	$ 1.49	$ 1.46

(28) Transactions with non-controlling interest

A. Acquisition of additional equity interest in a subsidiary

On March 14, 2024, the Group's subsidiary, Formosa Biomedical Technology Corp., acquired a 21.21% equity interest in its subsidiary, HONG JING RESOURCES CO., LTD., for a total cash consideration of $326,641. The carrying amount of non-controlling interest was $187,981 at the acquisition date. This transaction resulted in a decrease in the non-controlling interest by $187,981 and a decrease in the equity attributable to owners of the parent by $138,660. The effect of changes in interests in the Group on the equity attributable to owners of the parent for the year ended December 31, 2024 is shown below:

	For the year ended December 31, 2024
Carrying amount of non-controlling interest acquired	$ 187,981
Consideration paid to non-controlling interest	( 326,641)
Decrease in unappropriated retained earnings	($ 138,660)

B. Disposal of equity interest in a subsidiary (that did not result in a loss of control)

On September 19, 2024, the Group's subsidiary, Formosa Biomedical Technology Corp., disposed 1.60% of shares of its subsidiary—Hong Jing Resources Corp. for a total cash consideration of $24,486. The carrying amount of non-controlling interest in Hong Jing Resources Corp. was $33,697 at the disposal date. This transaction resulted in an increase in the non-controlling interest by $24,486 and an increase in the equity attributable to owners of the parent by $9,211. The effect of changes in interests in the Group's subsidiary, Formosa Biomedical Technology Corp., on the equity attributable to owners of the parent for the year ended December 31, 2024 is shown below:

	For the year ended December 31, 2024
Carrying amount of non-controlling interest disposed	$ 33,697
Consideration received from non-controlling interest	( 24,486)
Capital surplus - difference between proceeds on actual acquisition of or disposal of equity interest in a subsidiary and its carrying amount	$ 9,211

(29) Business combinations

A. The Group has acquired Ivy Life Sciences Co., Ltd. by cash amounting to $182,232 and $572,800 on March 9, 2022 and May 31, 2022, respectively, equivalent to 51% equity interest and has obtained control over it.

B. The following table summarises the consideration paid for Ivy Life Sciences Co., Ltd. and the fair values of the temporary assets acquired and liabilities assumed at the acquisition date, as well as the non-controlling interest's proportionate share of the recognised amounts of acquiree's identifiable net assets at the acquisition date:

	May 31, 2022
Purchase consideration
Cash paid	$ 755,032
Non-controlling interest’s proportionate share of the recognised amounts of acquiree’s identifiable net assets	403,115
	1,158,147
Fair value of the temporary identifiable assets acquired and liabilities assumed
Cash	771,595
Accounts receivable	4,046
Other current assets	4,351
Inventories	5,153
Property, plant and equipment	141,257
Intangible assets	395
Other non-current assets	8,945
Notes payable	( 1,580)
Other payables	( 21,247)
Other current liabilities	( 29,125)
Long-term borrowings	( 48,853)
Other non-current liabilities	( 12,119)
Total identifiable net assets	822,818
Goodwill	$ 335,329

C. For the abovementioned acquisition, the acquisition price allocation report had been obtained in May 2023. Consequently, the tentative amount from the acquisition date had been adjusted and the consolidated financial statements for the comparative periods had been restated. Movements in relation to each account are as follows:

Affected items	December 31, 2022
	As reported	Adjustments	As restated
Property, plant and equipment	$ 142,848,941	$ 12,202	$ 142,861,143
Intangible assets	5,585	335,329	340,914
Other non-current assets (Note 1)	12,314,889	( 339,863)	10,603,486
		( 1,371,540)
Non-controlling interest	42,229,723	7,668	42,237,391

Note 1: For the reason for the adjustment ($1,371,540) in other non-current assets, refer to Note 4(4) in the consolidated financial statements for the year ended December 31,2023.

(30) Supplemental cash flow information

A. Investing activities with partial cash payments

	For the years ended December 31,
	2024	2023
Purchase of fixed assets	$ 12,307,572	$ 19,883,784
Add: Opening balance of payable on equipment	2,646,998	3,543,908
Less: Ending balance of payable on equipment	( 2,523,803)	( 2,646,998)
Cash paid during the year	$ 12,430,767	$ 20,780,694

B. Financing activities with partial cash payments

	For the years ended December 31,
	2024	2023
Cash dividends distributed	$ 7,326,483	$ 5,568,127
Add: Opening balance of cash dividends payable	58,655	75,964
Less: Ending balance of cash dividends payable	( 47,965)	( 58,655)
Cash dividends paid	$ 7,337,173	$ 5,585,436

(31) Changes in liabilities from financing activities

	Short-term borrowings	Short-term notes and bills payable	Bonds payable (including current portion)	Long-term borrowings (including current portion)	Liabilities from financing activities-gross
At January 1, 2024	$ 36,266,613	$ 26,780,338	$ 40,650,000	$ 41,927,141	$ 145,624,092
Changes in cash flow from financing activities	306,010	5,512,049	( 3,800,000)	1,099,931	3,117,990
Impact of changes in foreign exchange rate	-	-	-	1,057,439	1,057,439
At December 31, 2024	$ 36,572,623	$ 32,292,387	$ 36,850,000	$ 44,084,511	$ 149,799,521

~77~

At January 1, 2023	Short-term borrowings	Short-term notes and bills payable	Bonds payable (including current portion)	Long-term borrowings (including current portion)	Liabilities from financing activities-gross
At January 1, 2023	$ 35,117,887	$ 32,892,666	$ 45,500,000	$ 24,763,419	$ 138,273,972
Changes in cash flow from financing activities	1,148,726	( 6,112,328)	( 4,850,000)	17,223,933	7,410,331
Impact of changes in foreign exchange rate	-	-	-	( 60,211)	( 60,211)
At December 31, 2023	$ 36,266,613	$ 26,780,338	$ 40,650,000	$ 41,927,141	$ 145,624,092

7. Related Party Transactions

(1) Names of related parties and relationship

Names of related parties	Relationship with the Group
Formosa Petrochemical Corp.	Associate
Formosa Heavy Industries Corp.	“
Formosa Heavy Industries (Ningbo) Corp.	“
Formosa Plastics Transport Corp.	“
Formosa Synthetic Rubber (Ningbo) Corp.	“
Mai Liao Power Corp.	“
Formosa Environmental Technology Corp.	“
Hwa Ya Science Park Management Consulting Corp.	“
Formosa Resourses Corp.	“
Formosa Steel IB Pty Ltd.	“
Formosa Plastics Construction Corp.	“
Formosa Fairway Corporation (Note 1)	“
Formosa Group (Cayman) Corp.	“
Guo Su Plastic Industry Co., Ltd.	“
FG Inc.	“
Formosa Advanced Technologies Co., Ltd.	“
Schoeller Textil AG	“
Nan Ya Optical Corp.	“
Formosa Smart Energy Tech Corp.	“
Formosa AdvEnergy Technology Corp.	“
Formosa Lithium Iron Oxide Corp.	“
Formosa Green Power Corp.	“
Beyoung International Corp.	“
Changshu Yu Yuan Co., Ltd.	“
Formosatree Co., Ltd.	“

Names of related parties	Relationship with the Group
Formosa Plastics Corp.	Other related party
Nan Ya Plastics Corp.	“
Nan Ya Plastics (Hui Zhou) Corp.	“
Nan Ya Plastics (Nan Tong) Corp.	“
Nan Ya Plastics Corp., U.S.A.	“
Nan Ya Plastics (Ningbo) Corp.	“
Nan Ya Technology Corp.	“
Nan Ya PCB Corp.	“
Nan Ya Electronic Materials Co., Ltd.	“
Formosa Petrochemical Transportation Corporation	“
Chang Gung University	“
Chang Gung Memorial Hospital	“
Chang Gung Biotechnology Co., Ltd.	“
Yue Chi Development Corp.	“
PFG Fiber Glass Corp.	“
Formosa Plastics Marine Corp.	“
Formosa Plastics Marine Co., Ltd.	“
Mai Liao Harbor Administration Corp.	“
Formosa Network Technology Corp.	“
Formosa Plastics Building Parking Lot	“
FPG Travel Service Co., Ltd.	“
Formosa Daikin Advanced Chemicals Co., Ltd.	“
Formosa Sumco Technology Corporation	“
Formosa Asahi Spandex Co., Ltd.	“
Formosa Plastics Transport (Ningbo) Co., Ltd.	“
Formosa Electronic (Ningbo) Co., Ltd	“
Idemitsu Formosa Specialty Chemicals Corporation	“
Formosa Tokuyama Advanced Chemicals Co.,Ltd.	“
Inteplast Taiwan Corporation	“
Formosa Oil (Asia Pacific) Corporation	“
Asia Pacific Development Corp.	“
Ya Tai Development Co., Ltd.	“
Bio Trust International Corp.	“
Formosa Ha Tinh (Cayman) Ltd.	“
Formosa Ha Tinh Steel Corp. - TW	“
Formosa Ha Tinh Steel Corp.	“
BP Chemicals (Malaysia) SDN Corp.	“
INEOS Acetyls (Malaysia) SDN Bhd	“

~78~

Names of related parties	Relationship with the Group
Idemitsu Kosan Co., Ltd.	Other related party
Idemitsu Chemicals (Hong Kong) Co., Ltd.	“
Idemitsu Chemicals U.S.A. Corp.	“
Yugen Co., Ltd.	“
Yumaowu Enterprise Co., Ltd.	“
Yu Yuang Textile Co., Ltd.	“
Yu Maowu Complex Co., Ltd.	“
NKFG Corporation	“
Schoeller Asia Co., Ltd	“
Zur Schanze AG (Note 2)	“
Zum Felsen AG (Note 2)	“
Kuang Yueh (Vietnam) Co., Ltd.	“
Great King Garment Co., Ltd.	“
Bellmart Industrial Co., Ltd.	“
Toa Resin Corp.	“
Hua Ya Power Corp.	“
Asia Pacific Technology Corp.	“
Kong You Industrial Co., Ltd.	“
Formosa Industries (Ningbo) Co., Ltd.	“
Nan Ya Plastics (Anshan) Co., Ltd.	“
Nan Ya Electronic Materials (Kunshan) Co., Ltd.	“
Nan Ya Plastics Film (Nantong) Co., Ltd.	“
Nan Ya Plastics Film (Hui Zhou) Co., Ltd	“
Nan Ya Chemical Fiber (Kunshan) Co., Ltd.	“
Nan Ya Plastics (Xiamen) Co., Ltd.	“
Formosa Heavy Industries (Guangzhou) Co., Ltd.	“
Asia Pacific Investment Co.	“
Nan Ya Printed Circuit Board Corp.	“
Taisuwang Commerce and Trade Co., Ltd.	“
Huaya Steel Co., Ltd.	“
Fujian Fuxin Special Steel Co., Ltd.	“
Kraton Formosa Polymers Corporation	“
Formosa Steel Corporation	“
Formosa Plastics Corporation, U.S.A.	“
Silicon Based Molecular Sensoring Technology Co., Ltd.	“
Fun Lead Change CO., LTD.	“
SIMOSA OIL CO., LTD.	“

Note 1 : As the Group disposed Formosa Fairway Corporation on March 25, 2024, Formosa Fairway Corporation was no longer an associate of the Group from that date.

Note 2 : Due to the equity planning adjustments, another original shareholder of Schoeller Textile AG,

Albers & Co AG, split into Zur Schanze AG and Zum Felsen AG. Consequently, Schoeller Textile AG is now held by the above two companies.

(2) Significant related party transactions

A. Sales of goods:

	For the years ended December 31,
	2024	2023
Sales of goods:
— Associates
Formosa Petrochemical Corp.	$ 35,727,633	$ 32,765,022
Others	3,151,950	3,267,360
— Other related parties
Nan Ya Plastics Corp.	23,861,189	24,223,207
Others	22,820,069	17,443,779
	$ 85,560,841	$ 77,699,368

The Group sells goods to related parties. Except for terms to certain related parties which are longer, prices are the same with third parties.

B. Purchases of goods:

	For the years ended December 31,
	2024	2023
Purchases of goods:
— Associates
Formosa Petrochemical Corp.	$ 152,733,352	$ 152,576,758
Others	4,298	5,057
— Other related parties	11,868,233	12,577,734
	$ 164,605,883	$ 165,159,549

The payment terms for related parties are within 30~60 days from the date of purchase. The purchase prices and terms for related parties are the same with non-related parties.

C. Receivables from related parties:

	December 31, 2024	December 31, 2023
Receivables from related parties:
— Associates
Formosa Petrochemical Corp.	$ 2,915,178	$ 3,583,046
Others	353,192	304,045
— Other related parties	4,538,855	4,469,484
	$ 7,807,225	$ 8,356,575

Receivables from related parties are mainly from sales of goods and receivables for payments on behalf of others for construction design services. Receivables for sales are due 30~120 days from the date of sale; receivables for payments on behalf of others for construction design services are due 270 days from the services rendered. The receivables do not bear interest and no collaterals were pledged. No provision was accrued for receivables from related party.

D. Payables to related parties:

	December 31, 2024	December 31, 2023
Payables to related parties:
— Associates
Formosa Petrochemical Corp.	$ 10,505,876	$ 9,315,531
Others	137	796
— Other related parties	1,368,075	1,279,510
	$ 11,874,088	$ 10,595,837

The payables to related parties arise mainly from purchase transactions and are due 30~60 days after the date of purchase. The payables bear no interest.

E. Expansion and repair project

(a) Expansion and repair project:

	For the years ended December 31,
	2024	2023
Expansion and repair works of factory sites
— Associates	$ 468,915	$ 803,658
— Other related parties	114,142	352,343
	$ 583,057	$ 1,156,001

(b) Ending balance of payables for expansion and repair project:

	December 31, 2024	December 31, 2023
Payables to related parties:
— Associates	$ 3,703	$ -
— Other related parties	1,131	31,612
	$ 4,834	$ 31,612

The Group contracted the expansion and repair works of the factory sites to related parties. The payment terms are in accordance with the industry practice with payment due within a month after inspection.

~81~

F. Financing

(a) Loans to related parties:

i. Ending balance of accounts receivable - related parties

	December 31, 2024	December 31, 2023
- Associates
Formosa Steel IB Pty Ltd.	$ -	$ 1,622,500
- Other related parties
Formosa Industries (Ningbo) Co., Ltd.	-	2,169,700
Formosa Plastics Marine Co., Ltd.	-	1,454,927
	$ -	$ 5,247,127

ii. Interest income

	For the years ended December 31,
	2024	2023
- Associates
Formosa Heavy Industries Corp.	$ -	$ 7,847
Formosa Steel IB Pty Ltd.	26,138	5,849
- Other related parties
Formosa Industries (Ningbo) Co., Ltd.	51,571	8,320
Formosa Plastics Marine Co., Ltd.	5,659	26,155
	$ 83,368	$ 48,171

The loan terms to related parties are in accordance with the contract's repayment schedule after the loan is made; interest was collected at 2.48%~2.96% and 1.86%~2.92% per annum for the years ended December 31, 2024 and 2023, respectively.

(b) Loans from related parties:

i. Ending balance of accounts payable - related parties

	December 31, 2024	December 31, 2023
- Associates	$ 1,607,493	$ 1,488,430
- Other related parties	563,193	232,161
	$ 2,170,686	$ 1,720,591

ii. Interest expense

	For the years ended December 31,
	2024	2023
- Associates	$ 40,957	$ -
- Other related parties	10,922	41,631
	$ 51,879	$ 41,631

The loan terms from related parties are in accordance with the contract's repayment schedule after the loan is made; interest is paid at a rate of 2.48%~2.96% and 2.76% per annum for the years ended December 31, 2024 and 2023, respectively.

~82~

G. Operating expenses

	For the years ended December 31,
	2024	2023
Transportation charges
— Other related parties
Formosa Plastics Marine Corp.	$ 1,743,691	$ 1,518,963
Formosa Plastics Transport (Ningbo) Corp.	1,094,055	1,341,784
Others	100,980	85,671
	$ 2,938,726	$ 2,946,418

H. Rental revenue

	For the years ended December 31,
	2024	2023
— Associates
Formosa Petrochemical Corp.	$ 136	$ 17,946
Formosa Plastics Transport Corp.	12,445	-
Others	8,639	10,180
	21,220	28,126
— Other related parties
Nan Ya Plastics Corp.	11,558	26,004
Formosa Network Technology Corp.	15,400	13,736
Formosa Plastics Building Parking Lot	-	15,400
Others	34,162	25,779
	61,120	80,919
	$ 82,340	$ 109,045

The rental prices charged to related parties are determined considering the local rental prices and payments, and are collected monthly.

I. Property transactions:

(a) Acquisition of property, plant and equipment

	For the years ended December 31,
Purchase of property, plant and equipment	2024	2023
— Associates	$ 643,741	$ 758,898
— Other related parties	1,137	90,241
	$ 644,878	$ 849,139

(b) Disposal of property, plant and equipment:

	For the year ended December 31, 2024
	Proceeds from disposal	Gain or loss on disposal
— Other related parties	$ 94,668	$ -

For the year ended December 31, 2023: None.

				For the year ended December 31, 2024
	Accounts	No. of shares	Objects	Consideration
Formosa Smart Energy Tech Corp.	Investments accounted for using equity method	250,000,000	Shares of Formosa Smart Energy Tech Corp	$ 2,500,000
Formosatree Co., Ltd.	Investments accounted for using equity method	23,700,000	Shares of Formosatree Co., Ltd.	237,000
Silicon-Based Molecular Sensoring Technology Co., Ltd.	Current financial assets at fair value through other comprehensive	7,500,000	Shares of Silicon-Based Molecular Sensoring	60,000
				$ 2,797,000
				For the year ended December 31, 2023
	Accounts	No. of shares	Objects	Consideration
Formosa Smart Energy Tech Corp.	Investments accounted for using equity method	75,000,000	Shares of Formosa Smart Energy Tech Corp.	$ 750,000
Formosa Plastics Construction Corp.	Investments accounted for using equity method	50,000,000	Shares of Formosa Plastics Construction Corp.	500,000
Formosatree Co., Ltd.	Investments accounted for using equity method	79,860,000	Shares of Formosatree Co., Ltd.	799,625
				$ 2,049,625

(d) Disposal of financial assets:

	Accounts	No. of shares	Objects	Year ended December 31, 2023
				Proceeds	Gain/(loss)
Formosa	Investments	26,049,036	Shares of Formosa	$ 40,490	($ 3,187)
Smart Energy	accounted		Lithium Iron
Tech Corp.	for using equity		Oxide Crop.

December 31, 2024: None.

J. Details of affiliates endorsed/guaranteed and commitment letter for the associate are provided in Notes 9(3) and (4).

(3) Key management compensation

	For the years ended December 31,
	2024	2023
Salaries	$ 184,342	$ 184,887
Post-employment benefits	1,608	1,574
	$ 185,950	$ 186,461

8. Pledged Assets

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

Pledged assets	Book value		Purpose
	December 31, 2024	December 31, 2023
Property, plant and equipment	$ 5,871,427	$ 5,872,127	Collateral for bank loans
Inventory	14,133	17,625	Collateral for bank loans
Non-current financial assets at amortised cost - Time deposits	1,500	1,500	Guarantee deposits for natural gas
Non-current financial assets at amortised cost	97,317	-	Performance Guarantee
	$ 5,984,377	$ 5,891,252

9. Significant Contingent Liabilities and Unrecognised Contract Commitments

The details of commitments and contingencies as of December 31, 2024 were as follows:

(1) Capital expenditures of property, plant and equipment that were contracted but not yet paid amounted to NTD 5,140,723 thousand, RMB 408,479 thousand and VND 291,231,780 thousand.

(2) The outstanding letters of credit for major raw materials and equipment purchases amounted to USD 60,254 thousand, JPY 105,940 thousand, EUR 1,074 thousand.

(3) The provision of endorsements and guarantees to others are as follows:

	December 31, 2024	December 31, 2023
Formosa Group (Cayman) Corp.	$ 8,195,250	$ 7,683,750
Formosa Taffeta (Zhong Shan) Co., Ltd.	-	-
Formosa Taffeta (Vietnam) Co., Ltd.	163,243	99,540
Formosa Taffeta (Changshu) Co., Ltd.	90,415	97,237
Formosa Taffeta (Dong Nai) Co., Ltd.	1,850,143	1,957,634
	$ 10,299,051	$ 9,838,161

(4) The promissory notes issued for others are as follows:

A. The Group's indirect investees, Formosa Ha Tinh (Cayman) Limited Co. and Formosa Ha Tinh Steel Corporation, were provided with a bank loan facility of USD 4,548,500 thousand and USD 3,537,500 thousand to meet the operation needs, respectively. To secure the rights of its shareholders, the Company is required to issue a promissory note to ensure the borrower will fulfill its obligation for repayment.
B. The Group's consolidated entities, Formosa Industries Corp. and Formosa Chemicals Industries (Ningbo) Co., Ltd., were provided with a bank loan facility of USD 200,000 thousand and RMB 3,100,000 thousand to meet the operation needs. To secure the rights of its shareholders, the Company is required to issue a promissory note to ensure the borrower will fulfill its obligation for repayment.
C. The Group's indirect investees, Formosa Resources Corp., Formosa Steel IB Pty Ltd. and Formosa Resources Australia Pty Ltd., were provided with a bank loan facility of USD 430,000 thousand, USD 1,195,000 thousand and USD 550,000 thousand to meet the operation needs, respectively. To secure the rights of its shareholders, the Company is required to issue a promissory note to ensure the borrower will fulfill its obligation for repayment.

(5) Contingencies - litigation

A. Taiwan Cooperative Bank Co., Ltd. (hereinafter referred to as TCB) filed a civil lawsuit against the Group's subsidiary, Formosa Taffeta Co., Ltd. ("Formosa Taffeta") with the Taipei District Court in September 2019. TCB claimed that the former employees of Formosa Taffeta colluded with New Site Industries Inc. (hereinafter referred to as New Site) and New Brite Industries Inc. (hereinafter referred to as New Brite) to make false statements. TCB was misled with the fact that New Site and New Brite has accounts receivable due from Formosa Taffeta, causing damage to TCB. Therefore, TCB claimed that Formosa Taffeta should be jointly and severally liable with the obligation of indemnity. However, this case arose purely as a result of the personal behavior of the former employee. In its adjudication dated October 29, 2024, the Taiwan High Court has ordered that Formosa Taffeta is jointly liable to compensate TCB for the amount of $290,657 and any requested interest. However, based on legal opinion, it should be noted that the second instance ruling still did not fully consider several vital defenses raised by Formosa Taffeta and proportional responsibility of both parties. Formosa Taffeta filed a third appeal on December 13, 2024. As such, the ultimate outcome of the appeal and amount of the lawsuit cannot presently be determined.

B. DBS (Taiwan) Commercial Bank Co., Ltd. (hereinafter referred to as DBS) filed a civil lawsuit against the Group's subsidiaries, Formosa Taffeta Co., Ltd. ("Formosa Taffeta") and Formosa Taffeta Dong Nai Co., Ltd. ("Formosa Taffeta Dong Nai") with the Taipei District Court in September 2019. The former employees of Formosa Taffeta and Formosa Taffeta Dong Nai colluded with New Site Industries Inc. (hereinafter referred to as New Site) to make false statements. DBS was misled with the fact that New Site has accounts receivable due from Formosa Taffeta and Formosa Taffeta Dong Nai, causing damage to DBS. Therefore, DBS claimed that Formosa Taffeta should be jointly and severally liable with the obligation of indemnity. However, this case arose purely as a result of the personal behavior of the former employee. In its adjudication dated December 30, 2022, the Taipei District Court has rejected the claims filed by DBS. Consequently, DBS filed an appeal in January 2023. The ultimate outcome of the appeal and amount of the lawsuit cannot presently be determined. However, Formosa Taffeta and Formosa Dong Nai have engaged lawyers to submit a strong defense to protect their rights and interests.

C. O-Bank filed a civil lawsuit against the Group's subsidiaries, Formosa Taffeta Co., Ltd. ("Formosa Taffeta") and Formosa Taffeta Dong Nai Co., Ltd. ("Formosa Taffeta Dong Nai") with the Taipei District Court in February 2020. The former employees of Formosa Taffeta and Formosa Taffeta Dong Nai colluded with I Chin Young Inc. (hereinafter referred to as I Chin Young) to make false statements. O-Bank was misled with the fact that I Chin Young has accounts receivable due from Formosa Taffeta and Formosa Taffeta Dong Nai, causing damage to O-Bank. Therefore, O-Bank claimed that Formosa Taffeta and Formosa Taffeta Dong Nai should be jointly and severally liable with the obligation of indemnity. However, this case arose purely as a result of the personal behavior of the former employee. In its adjudication dated February 10, 2023, the Taipei District Court has rejected the claims filed by O-Bank. O-bank has filed an appeal in accordance with related laws. The ultimate outcome of the appeal and amount of the lawsuit cannot presently be determined. However, Formosa Taffeta and Formosa Dong Nai have engaged lawyers to submit a strong defense to protect their rights and interests.

Significant Disaster Loss

None.

Significant Events after the Balance Sheet Date

The Board of Directors has resolved the appropriations of 2024 earnings on March 7, 2025. Details are provided in Note 6(17)F.

~87~

~88~

12. Others

(1) Capital management

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. The Group monitors capital on the basis of the gearing ratio. This ratio is calculated as net debt divided by total capital. Net debt is calculated as total borrowings (including ‘current and non-current borrowings’ as shown in the consolidated balance sheet) less cash and cash equivalents. Total capital is calculated as ‘equity’ as shown in the consolidated balance sheet plus net debt.

The Group’s management strategy of its debt-to-capital ratio for the year ended December 31, 2024 is the same as that for the year ended December 31, 2023. As of December 31, 2024 and 2023, the Group’s debt-to-capital ratio was 29% and 24%, respectively.

(2) Financial instruments

A. Financial instruments by category

	December 31, 2024	December 31, 2023
Financial assets
Financial assets at fair value through profit or loss	$ 1,846,201	$ 1,641,598
Financial assets at fair value through other comprehensive income	83,640,300	151,372,912
Financial assets at amortised cost	65,994,657	68,058,543
	$ 151,481,158	$ 221,073,053
	December 31, 2024	December 31, 2023
Financial liabilities
Financial liabilities at fair value through profit or loss	$ -	$ 479
Financial liabilities at amortised cost	176,920,607	173,944,690
Lease liability	988,924	983,254
	$ 177,909,531	$ 174,928,423

Note: Financial assets measured at amortised cost include cash and cash equivalents, financial assets measured at amortised cost, accounts and notes receivable (including related parties),

other receivables (including related parties), and refundable deposits. Financial liabilities measured at amortised cost include short-term borrowings, notes payable, accounts payable (including related parties), other payables (including related parties), long-term borrowings (including those maturing within one year or one business cycle), corporate bonds payable (including those maturing within one year or one business cycle), and guarantee deposits received.

B. Financial risk management policies

(a) The Group’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. To minimize any adverse effects on the financial performance of the Group, derivative financial instruments, such as foreign exchange forward contracts and foreign currency option contracts are used to hedge certain exchange rate risk.

(b) Risk management is carried out by a central treasury department (Company treasury) under policies approved by the board of directors. Company treasury identifies, evaluates and hedges financial risks in close cooperation with the Group’s operating units. The Board provides written principles for overall risk management, as well as written policies covering specific areas and matters, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.

(c) Information about derivative financial instruments that are used to hedge certain exchange rate risk are provided in Note 6(11).

C. Significant financial risks and degrees of financial risks

(a) Market risk

Foreign exchange risk

i. The Group is exposed to foreign exchange risk arising from the transactions of the Company and its subsidiaries used in various functional currency, primarily with respect to the USD and RMB. Foreign exchange risk arises from future commercial transactions, recognised assets and liabilities.

ii. Management has set up a policy to manage its foreign exchange risk against its functional currency. Each entity hedges its entire foreign exchange risk exposure.

iii. The Group hedges foreign exchange rate by using forward exchange contracts. However, the Group does not adopt hedging accounting. Details of financial assets or liabilities at fair value through profit or loss are provided in Note 6(11)

iv. The Group’s businesses involve some non-functional currency operations (the Company’s and certain subsidiaries’ functional currency: NTD; other certain subsidiaries’ functional currency: USD, VND and RMB). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

~89~

~90~

	December 31, 2024
	Foreign Currency Amount (In Thousands)	Exchange Rate	Book Value (NTD)
Financial assets
Monetary items
USD : NTD	$ 377,880	32.78	$ 12,386,906
JPY : NTD	476,043	0.21	99,969
USD : RMB	20,149	32.78	660,484
USD : VND	26,073	32.78	854,673
Non-monetary items
RMB : NTD	$ 13,334,488	4.56	$ 60,805,265
USD : NTD	155,644	32.78	5,102,010
VND : NTD	4,863,568,237	0.0013	6,322,639
Financial liabilities
Monetary items
USD : NTD	$ 14,193	32.78	$ 465,247
USD : VND	263,311	32.78	8,631,335
	December 31, 2023
	Foreign Currency Amount (In Thousands)	Exchange Rate	Book Value (NTD)
Financial assets
Monetary items
USD : NTD	$ 410,070	30.74	$ 12,605,552
JPY : NTD	624,554	0.22	137,402
USD : RMB	23,785	30.74	731,151
USD : VND	20,507	30.74	630,385
Non-monetary items
RMB : NTD	$ 14,260,478	4.34	$ 61,890,475
USD : NTD	165,179	30.74	5,077,602
VND : NTD	5,169,342,905	0.0013	6,720,146
Financial liabilities
Monetary items
USD : NTD	$ 68,663	30.74	$ 2,110,701
USD : VND	360,623	30.74	11,085,551

v. Total exchange gain (loss), including realised and unrealised arising from significant foreign exchange variation on the monetary items held by the Group for the years ended December 31, 2024 and 2023 amounted to $228,710 and ($295,756), respectively.

vi. Analysis of foreign currency market risk arising from significant foreign exchange variation:

~91~

For the year ended December 31, 2024
Financial assets	Sensitivity analysis
	Degree of variation	Effect on profit or loss	Effect on other comprehensive income
Monetary items
USD : NTD	1%	$ 123,869	$ -
JPY : NTD	1%	1,000	-
USD : RMB	1%	6,605	-
USD : VND	1%	8,547	-
Non-monetary items
RMB : NTD	1%	$ -	$ 608,053
USD : NTD	1%	-	51,020
VND : NTD	1%	-	63,226
Financial liabilities
Monetary items
USD : NTD	1%	$ 4,652	$ -
USD : VND	1%	86,313	-
For the year ended December 31, 2023
Financial assets	Sensitivity analysis
	Degree of variation	Effect on profit or loss	Effect on other comprehensive income
Monetary items
USD : NTD	1%	$ 126,056	$ -
JPY : NTD	1%	1,374	-
USD : RMB	1%	7,312	-
USD : VND	1%	6,304	-
Non-monetary items
RMB : NTD	1%	$ -	$ 618,905
USD : NTD	1%	-	50,776
VND : NTD	1%	-	67,201
Financial liabilities
Monetary items
USD : NTD	1%	$ 21,107	$ -
USD : VND	1%	110,856	-

~92~

Price risk

i. The Group’s equity securities, which are exposed to price risk, are the held financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income. To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Group.

ii. The Group’s investments in equity securities comprise domestic listed, beneficiary certificate and fund. 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, components of equity for the years ended December 31, 2024 and 2023 would have increased/decreased by $14,770 and $13,133, respectively, as a result of gains/losses on equity securities classified as at fair value through profit or loss. Other components of equity would have increased/decreased by $836,403 and $1,513,729, respectively, as a result of other comprehensive income on equity investments classified as at fair value through other comprehensive income.

Cash flow and fair value interest rate risk

i. The Group’s interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the Group to cash flow interest rate risk which is partially offset by cash and cash equivalents held at variable rates. Borrowings issued at fixed rates expose the Group to fair value interest rate risk. During the years ended December 31, 2024 and 2023, the Group’s borrowings at variable rate were denominated in the NTD and USD.

ii. The Group’s borrowings are measured at amortised cost. The borrowings are periodically contractually repriced and to that extent are also exposed to the risk of future changes in market interest rates.

iii. For the years ended December 31, 2024 and 2023, if interest rates on borrowings had been 1% higher/lower with all other variables held constant, post-tax profit for the years then ended would have been $352,676 and $335,417 lower/higher, respectively, mainly as a result of higher/lower interest expense on floating rate borrowings.

(b) Credit risk

i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms, classified as the contract cash flows of instruments stated at amortised cost at fair value through other comprehensive income.

ii. The Group manages its credit risk taking into consideration the entire group's concern. For banks and financial institutions, only independently rated parties with a minimum rating of 'A' are accepted. According to the Group's credit policy, each local entity in the Group is responsible for managing and analysing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the Board of Directors. The utilisation of credit limits is regularly monitored.

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

iv. The Group wrote-off the financial assets, which cannot be reasonably expected to be recovered, after initiating recourse procedures. However, the Group will continue executing the recourse procedures to secure their rights. On December 31, 2024 and 2023, the Group's written-off financial assets that are still under recourse procedures amounted to $4,924 and $4,924, respectively.

v. The Group used the forecastability of Directorate-General of Budget, Accounting and Statistics, Executive Yuan and Taiwan Institute of Economic Research boom observation report to adjust historical and timely information to assess the default possibility of accounts receivable, contract assets and lease payments receivable. As of December 31, 2024 and 2023, the provision matrix is as follows:

	Not past due	Up to 30 days past due	31~90 days past due	Over 91 days past due
At December 31, 2024
Expected loss rate	0.15%~24.00%	0.05%~24.00%	0.09%~100.00%	77.27%~100.00%
Total book value	$ 29,718,678	$ 178,289	$ 47,047	$ 59,713
Loss allowance	$ 77,290	$ 686	$ 6,228	$ 47,933
At December 31, 2023
Expected loss rate	0.03%~1.00%	0.03%~10.00%	0.03%~72.00%	51.19%~100.00%
Total book value	$ 27,682,855	$ 184,298	$ 110,148	$ 130,609
Loss allowance	$ 38,851	$ 3,368	$ 4,205	$ 84,565

The ageing analysis of accounts receivable that were past due but not impaired is as follows:

	December 31, 2024	December 31, 2023
Not past due	$ 29,718,678	$ 27,682,855
Up to 30 days	178,289	184,298
31 to 90 days	47,047	110,148
Over 91 days	59,713	130,609
Over 181 days	-	-
	$ 30,003,727	$ 28,107,910

The above ageing analysis was based on past due date.

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

	For the year ended December 31, 2024
	Accounts receivable	Contract assets	Notes receivable
At January 1	$ 130,989	$ -	$ -
Effect of exchange rate changes	1,148	-	-
At December 31	$ 132,137	$ -	$ -
	For the year ended December 31, 2023
	Accounts receivable	Contract assets	Notes receivable
At January 1	$ 151,542	$ -	$ -
Reversal of impairment loss	( 20,239)	-	-
Effect of exchange rate changes	( 314)	-	-
At December 31	$ 130,989	$ -	$ -

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

ii. Surplus cash held by the operating entities over and above balance required for working capital management are transferred to the Group treasury. Group treasury invests surplus cash in interest bearing current accounts, loans to related parties, time deposits and cash equivalents, choosing instruments with appropriate maturities or sufficient liquidity to provide sufficient headroom as determined by the abovementioned forecasts.

iii. The table below analyses the Group's non-derivative financial liabilities and net-settled or gross-settled derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for non-derivative financial liabilities and to the expected maturity date for derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.

Non-derivative financial liabilities:

December 31, 2024	Less than 1 year	Between 1 and 2 years	Between 3 and 5 years	Over 5 years
Lease liability	$ 260,284	$ 251,587	$ 500,811	$ 535,451
Bonds payable	10,950,000	9,500,000	11,850,000	4,550,000
Long-term borrowings	16,583,694	12,703,549	14,797,268	-

Non-derivative financial liabilities:

December 31, 2023	Less than 1 year	Between 1 and 2 years	Between 3 and 5 years	Over 5 years
Lease liability	$ 214,477	$ 198,426	$ 486,612	$ 516,450
Bonds payable	3,800,000	10,950,000	21,350,000	4,550,000
Long-term borrowings	3,075,105	26,496,747	9,258,833	3,096,456

Except for the aforementioned liabilities, the Group's non-derivative financial liabilities will mature within one year.

December 31, 2024 : None.

Derivative financial liabilities:

December 31, 2023	Less than 1 year	Between 1 and 2 years	Between 3 and 5 years	Over 5 years
Forward exchange contracts	$ 479	$ -	$ -	$ -

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

(3) Fair value estimation

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

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Group's investment in listed stocks 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. The fair value of the Group's investment in stock investment, private equity fund market, and most derivative instruments is included in Level 2.

Level 3: Inputs for the asset or liability that are not based on observable market data.

B. Financial instruments not measured at fair value

The carrying amounts of cash and cash equivalents, notes receivable (including related parties), accounts receivable (including related parties), other receivables (including related parties), short-term borrowings, short-term notes and bills payable, notes payable, accounts payable (including related parties) and other payables (including related parties) are approximate to their fair values. The carrying amounts of long-term borrowings (including current portion) and lease liabilities are reasonable basis for fair value estimate given that their interest rates are approximate to market rates.

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 are as follows:

December 31, 2024	Level 1	Level 2	Level 3	Total
Assets:
Recurring fair value measurement
Financial assets at fair value through profit or loss
Fund	$ -	$ 1,846,201	$ -	$ 1,846,201
Financial assets at fair value through other comprehensive income
Equity securities	53,051,051	1,548,260	29,040,989	83,640,300
	$ 53,051,051	$ 3,394,461	$ 29,040,989	$ 85,486,501
Liabilities:
Recurring fair value measurement
Financial liabilities at fair value through profit or loss	$ -	$ -	$ -	$ -
December 31, 2023	Level 1	Level 2	Level 3	Total
Assets:
Recurring fair value measurement
Financial assets at fair value through profit or loss
Fund	$ -	$ 1,641,598	$ -	$ 1,641,598
Financial assets at fair value through other comprehensive income
Equity securities	123,496,168	2,484,122	25,392,622	151,372,912
	$ 123,496,168	$ 4,125,720	$ 25,392,622	$ 153,014,510
Liabilities:
Recurring fair value measurement
Financial liabilities at fair value through profit or loss	$ -	$ 479	$ -	$ 479

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

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

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

(b) Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques or by reference to counterparty quotes. The fair value of financial instruments measured by using valuation techniques can be referred to current fair value of instruments with similar terms and characteristics in substance, discounted cash flow method or other valuation methods, including calculated by applying model using market information available at the consolidated balance sheet date.

(c) When assessing non-standard and low-complexity financial instruments, for example, debt instruments without active market, interest rate swap contracts, foreign exchange swap contracts and options, the Group adopts valuation technique that is widely used by market participants. The inputs used in the valuation method to measure these financial instruments are normally observable in the market.

(d) The valuation of derivative financial instruments is based on valuation model widely accepted by market participants, such as present value techniques and option pricing models. Forward exchange contracts are usually valued based on the current forward exchange rate. Structured interest derivative instruments are measured by using appropriate option pricing models (i.e. Black-Scholes model) or other valuation methods, such as Monte Carlo simulation.

(e) The output of valuation model is an estimated value and the valuation technique may not be able to capture all relevant factors of the Group's financial and non-financial instruments. Therefore, the estimated value derived using valuation model is adjusted accordingly with additional inputs, for example, model risk or liquidity risk and etc. In accordance with the Group's management policies and relevant control procedures relating to the valuation models used for fair value measurement, management believes adjustment to valuation is necessary in order to reasonably represent the fair value of financial and non-financial instruments at the consolidated balance sheet. The inputs and pricing information used during valuation are carefully assessed and adjusted based on current market conditions.

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

E. For the years ended December 31, 2024 and 2023, there was no transfer between Level 1 and Level 2.

F. The following chart is the movement of Level 3 for the years ended December 31, 2024 and 2023:

~97~

~98~

	For the year ended December 31, 2024
	Non-derivative equity instrument
At January 1	$	25,392,622
Gains and losses recognised in other comprehensive income
Recorded as unrealised gains (losses) on valuation of investments in equity instruments measured at fair value through other comprehensive income		3,372,129
Acquired during the year		588,000
Sold during the year	(	238)
Proceeds from capital reduction	(	3,484)
Transfers out and from level 3	(	308,040)
At December 31	$	29,040,989
	For the year ended December 31, 2023
	Non-derivative equity instrument
At January 1	$	21,780,153
Gains and losses recognised in other comprehensive income
Recorded as unrealised gains (losses) on valuation of investments in equity instruments measured at fair value through other comprehensive income		3,596,870
Acquired during the year		25,560
Sold during the year	(	3,113)
Proceeds from capital reduction	(	6,848)
At December 31	$	25,392,622

G. UBI Pharma Inc. terminated the trading of its stocks in the securities trading market starting from May 2024, and there was insufficient observable market information. Thus, the Group's subsidiary, Formosa Biochemical Technology Corp., had transferred the fair value from Level 2 into Level 3 at the end of the month when the event occurred. As the private placement securities originally held by the Group's subsidiary, Formosa Biochemical Technology Corp., had been offered publicly and had been applied for listing on the stock exchange in September 2024, the Company had transferred the fair value from Level 3 into Level 1.

H. The Group Treasury 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, confirming the resource of information is independent, reliable and in line with other resources and represented as the exercisable price, and frequently calibrating valuation model, performing back-testing, updating inputs used to the valuation model and making any other necessary adjustments to the fair value. The Treasury sets up valuation policies, valuation processes and rules for measuring fair value of financial instruments and ensure compliance with the related requirements in IFRS. The related valuation results are reported to Accounting Division monthly. Accounting Division is responsible for managing and reviewing valuation processes.

I. 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	Fair value at December 31, 2023	Valuation technique	Significant unobservable input	Relationship of inputs to fair value
Non-derivative equity instrument: Unlisted shares	$ 18,814,337	$ 14,864,421	Market comparable companies	Price to earnings ratio multiple, price to book ratio multiple, enterprise value to operating income ratio multiple, enterprise value to EBITA multiple, discount for lack of marketability	The higher the multiple, the higher the fair value
	1,306,609	1,338,551	Discounted cash flow	Long-term revenue growth rate, weighted average cost of capital, long-term pre-tax operating margin, discount for lack of marketability, discount for lack of control	The higher the long-term revenue growth rate and long-term pre-tax operating margin, the higher the fair value
	8,920,043	9,189,650	Net asset value	Not applicable	Not applicable

J. The Group has carefully assessed the valuation models and assumptions used to measure fair value. However, use of different valuation models or assumptions may result in different measurement. The following is the effect on profit or loss or on other comprehensive income from financial assets and liabilities categorised within Level 3 if the inputs used to valuation models have changed:

	Input	Change	December 31, 2024
			Recognised in other comprehensive income
			Favourable change	Unfavourable change
Financial assets
Equity instruments	Price to earnings ratio multiple, price to book ratio multiple, enterprise value to operating income ratio multiple, enterprise value to EBITA multiple, discount for lack of marketability	± 1%	$ 188,143	$ 188,143
Equity instruments	Long-term revenue growth rate, weighted average cost of capital, long-term pre-tax operating margin, discount for lack of marketability, discount for lack of control	± 1%	$ 13,066	$ 13,066
	Input	Change	December 31, 2023
			Recognised in other comprehensive income
			Favourable change	Unfavourable change
Financial assets
Equity instruments	Price to earnings ratio multiple, price to book ratio multiple, enterprise value to operating income ratio multiple, enterprise value to EBITA multiple, discount for lack of marketability	± 1%	$ 148,644	$ 148,644
Equity instruments	Long-term revenue growth rate, weighted average cost of capital, long-term pre-tax operating margin, discount for lack of marketability, discount for lack of control	± 1%	$ 13,386	$ 13,386

~101~

13. Supplementary Disclosures

(1) Significant transactions information

A. Loans to others: Refer to table 1.
B. Provision of endorsements and guarantees to others: Refer to table 2.
C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Refer to table 3.
D. Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company's paid-in capital: Refer to table 4.
E. Acquisition of real estate reaching $300 million or 20% of paid-in capital or more: None.
F. Disposal of real estate reaching $300 million or 20% of paid-in capital or more: None.
G. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more: Refer to table 5.
H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: Refer to table 6.
I. Trading in derivative instruments undertaken during the reporting periods: Refer to Notes 6(11); 12(2) and (3).
J. Significant intragroup transactions during the reporting periods: Refer to table 7.

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Refer to table 8.

(3) Information on investments in Mainland China

A. Basic information: Refer to table 9.
B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: Refer to table 10.

(4) Major shareholders information

Major shareholders information: Refer to table 11.

~102~

14. Segment Information

(1) General information

The Group’s reportable segments are strategic business units and provide different products and services. Strategic business units are separately managed because each unit needs different techniques and marketing strategies. The Group’s reportable segments are as follows:

1st Petrochemical Div: responsible for production of benzene, p-xylene and o-xylene.
2nd Petrochemical Div: responsible for production of styrene, synthetic phenolic and acetone.
3rd Petrochemical Div: responsible for production of purified terephthalic acid.

Plastics Division: responsible for production of ABS resin, polypropylene and PS.

Formosa Taffeta Co., Ltd.: responsible for production of blended fabric, spun fabric, cross-woven fabric, polyamine and polyester fabric, epidemic fabric, designer sportswear fabric, high-tech and function fabric, tire cord fabric, pure cotton yarn, blended yarn, various functional yarn, fireproof fabric, anti-static cloth and industrial fabric, and operation of petrol stations to sell petroleum, diesel fuel, kerosene and small package of petroleum products and provide car wash services.

Green Energy Division: responsible for solar energy and small hydropower generation.

(2) Measurement of segment information

The Group has not yet amortised tax expenses or non-recurring gains and losses to reportable segments. Further, not all reportable segments’ profit or loss include significant non-cash items besides depreciation and amortization. Reporting amount and reports for operating decision-maker are the same.

The Group’s operating segment profit or loss is measured based on operating income before tax for performance assessment basis. The Group considers the sale and transfer among segments as transactions with third parties and measured at market price.

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

For the year ended December 31, 2024

	1st Petrochemical Div	2nd Petrochemical Div	3rd Petrochemical Div	Plastics Division	Formosa Taffeta Co., Ltd.	Green Energy Division	Other divisions	Reconciliation and offset	Total
External revenue	$ 59,737,899	$ 71,222,282	$ 71,374,482	$ 82,916,119	$ 21,125,452	$ 215,253	$ 42,016,087	$ -	$ 348,607,574
Internal revenue	87,799,095	16,796,483	2,424,337	9,457,505	177,358	71,858	15,479,850	(132,206,486)	-
Total revenue	$ 147,536,994	$ 88,018,765	$ 73,798,819	$ 92,373,624	$ 21,302,810	$ 287,111	$ 57,495,937	($ 132,206,486)	$ 348,607,574
Segment profit (loss)	$ 1,891,356	($ 2,178,628)	($ 2,755,479)	($ 1,671,404)	$ 1,555,197	$ 143,229	$ 3,197,416	$ 755,059	$ 936,746
Segment profit (loss):
Total depreciation and amortisation	$ 3,125,658	$ 3,210,580	$ 3,075,860	$ 2,547,622	$ 797,930	$ 23,987	$ 2,416,127	$ -	$ 15,197,764
Interest expense	$ 359,881	$ 331,607	$ 485,447	$ 575,844	$ 193,577	$ 353	$ 1,462,448	$ -	$ 3,409,157
Investment income accounted for using equity method									$ 2,150,005
Not included in segments’ income measurement, but regularly provided to operating decision-maker:									($ 186,641)
Income tax expense
Total assets of segments	$ 40,355,770	$ 32,176,914	$ 48,408,932	$ 51,681,354	$ 49,278,396	$ 267,927	$ 370,985,772	($ 102,205,438)	$ 490,949,627

~103~

For the year ended December 31, 2023

	1stPetrochemicalDiv	2ndPetrochemicalDiv	3rdPetrochemicalDiv	Plastics Division	Formosa TaffetaCo., Ltd.	GreenEnergy Division	Other divisions	Reconciliationand offset	Total
External revenue	$61,480,584	$62,904,854	$61,698,136	$85,179,719	$21,788,427	$126,918	$39,440,895	$-	$332,619,533
Internal revenue	78,472,929	19,474,539	2,576,848	10,152,221	222,652	50,544	16,208,261	(127,157,994)	-
Total revenue	$139,953,513	$82,379,393	$64,274,984	$95,331,940	$22,011,079	$177,462	$55,649,156	($127,157,994)	$332,619,533
Segment profit (loss)	$5,430,461	($2,788,933)	($1,955,609)	($2,749,051)	$486,507	$31,573	$5,967,944	$2,963,596	$7,386,488
Segment profit (loss):
Total depreciation andamortisation	$3,381,998	$2,471,663	$3,520,143	$2,285,627	$797,060	$16,764	$4,990,441	$-	$17,463,696
Interest expense	$289,884	$267,880	$344,737	$423,704	$199,493	$63	$1,493,293	$-	$3,019,054
Investment incomeaccounted for usingequity method									$6,920,993
Not included in segments’ income measurement, but regularly provided to operating decision-maker:
Income tax expense									($318,454)
Total assets of segments	$42,169,183	$32,567,747	$43,647,821	$56,540,508	$68,515,082	$212,612	$425,352,372	($103,134,957)	$565,870,368

(4) Reconciliation for segment income (loss)

Sales between segments are carried out at arm’s length. The revenue from external parties reported to the chief operating decision-maker is measured in a manner consistent with that in the statement of comprehensive income.

(5) Information on products and services

	For the years ended December 31,
	2024	2023
Sales revenue	$ 347,771,980	$ 331,797,718
Service revenue	521,900	516,515
Other operating income	313,694	305,300
	$ 348,607,574	$ 332,619,533

(6) Geographical information

Geographical information for the years ended December 31, 2024 and 2023 is as follows:

	Year ended December 31, 2024		Year ended December 31, 2023
	Revenue	Non-current assets	Revenue	Non-current assets
Taiwan	$ 144,778,599	$ 82,224,223	$ 119,157,401	$ 80,347,185
China	145,592,519	59,196,459	160,814,966	56,425,302
Others	58,236,456	23,288,159	52,647,166	23,233,157
	$ 348,607,574	$ 164,708,841	$ 332,619,533	$ 160,005,644

(7) Major customer information

The information on customers with over 10% of sales revenue in the statement of comprehensive income for the years ended December 31, 2024 and 2023: None.

Formosa Chemicals and Fibre Corporation and subsidiaries

Loans to others

For the year ended December 31, 2024

Expressed in thousands of NTD

(Except as otherwise indicated)

Table 1

No. (Note 1)	Creditor	Borrower	General ledger account (Note 2)	Is a related party	Maximum outstanding balance during the year ended December 31, 2024 (Note 3)	Balance at December 31, 2024 (Note 8)	Actual amount drawn down	Interest rate	Nature of loan (Note 4)	Amount of transactions with the borrower (Note 5)	Reason for short-term financing (Note 6)	Allowance for doubtful accounts	Collateral		Limit on loans granted to a single party (Note 7)	Ceiling on total loans granted (Note 7)	Footnote
													Item	Value
0	The Company	Formosa Carpet Corp.	Other receivables-related parties	Yes	$ 100,000	$ 100,000	$ -	1.99-2.18	2	1	Additional operating capital	$ -	-	$ -	$ 27,254,827	$ 109,019,309	-
0	The Company	Formosa Biomedical Technology Corp.	Other receivables-related parties	Yes	500,000	500,000	-	1.99-2.18	2	1	Additional operating capital	-	-	-	27,254,827	$ 109,019,309	-
0	The Company	Hong Jing Resources Corp.	Other receivables-related parties	Yes	500,000	500,000	-	1.99-2.18	2	1	Additional operating capital	-	-	-	27,254,827	109,019,309	-
0	The Company	Formosa Plastics Construction Corp.	Other receivables-related parties	Yes	5,200,000	150,000	-	1.99-2.18	2	1	Additional operating capital	-	-	-	54,509,654	109,019,309	-
0	The Company	Formosa Heavy Industries Corp.	Other receivables-related parties	Yes	7,600,000	5,700,000	-	1.99-2.18	2	1	Additional operating capital	-	-	-	54,509,654	109,019,309	-
0	The Company	Formosa Petrochemical Corp.	Other receivables-related parties	Yes	6,000,000	4,500,000	-	1.99-2.18	1	2	Additional operating capital	-	-	-	68,137,068	136,274,136	-
0	The Company	Formosa Plastics Corp.	Other receivables-related parties	Yes	6,000,000	4,500,000	-	1.99-2.18	1	2	Additional operating capital	-	-	-	68,137,068	136,274,136	-
0	The Company	Nan Ya Plastics Corp.	Other receivables-related parties	Yes	6,000,000	4,500,000	-	1.99-2.18	1	2	Additional operating capital	-	-	-	68,137,068	136,274,136	-
0	The Company	Formosa Steel IB PTY LTD.	Other receivables-related parties	Yes	1,622,500	-	-	1.99-2.17	2	1	Additional operating capital	-	-	-	54,509,654	109,019,309	-
0	The Company	Formosa Plastics Marine Corp.	Other receivables-related parties	Yes	1,724,487	-	-	1.99-2.13	2	1	Additional operating capital	-	-	-	54,509,654	109,019,309	-

Table 1, Page 1

No. (Note 1)	Creditor	Borrower	General ledger account (Note 2)	Is a related party	Maximum outstanding balance during the year ended December 31, 2024 (Note 3)	Balance at December 31, 2024 (Note 8)	Actual amount drawn down	Interest rate	Nature of loan (Note 4)	Amount of transactions with the borrower (Note 5)	Reason for short-term financing (Note 6)	Allowance for doubtful accounts	Collateral		Limit on loans granted to a single party (Note 7)	Ceiling on total loans granted (Note 7)	Footnote
													Item	Value
2	Formosa Power (Ningbo) Co., Ltd.	Formosa Chemicals Industries (Ningbo) Co., Ltd.	Receivables from related party	Yes	$ 4,560,200	$ 4,560,200	4,560,200	2.48–2.76	2	1	Additional operating capital	$ -	-	$ -	$ 5,880,502	$ 5,880,502	-
2	Formosa Power (Ningbo) Co., Ltd.	Formosa Industries (Ningbo) Co., Ltd.	Receivables from related party	Yes	3,160,920	-	-	2.48–2.76	2	1	Additional operating capital	-	-	-	5,880,502	5,880,502	-

Note 1: The numbers filled in for the loans provided by the Company or subsidiaries are as follows:

(1)The Company is '0'.
(2) The subsidiaries are numbered in order starting from '1'.

Note 2: Name of account in which the loans are recognised including but not limited to accounts receivables-related parties, other receivables-related parties and, current account with stockholders, prepayments, and temporary payments, etc.

Note 3 : Maximum outstanding balance of loans to others during the year period ended December 31, 2024

Note 4 : The nature of loans:

(1) Related to business transactions is "1".
(2) Short-term financing is "2".

Note 5 : Amount of business transactions with the borrower :

(1) No business transactions is "1".
(2) Business transactions amount is provided in Note 13 (1) G.

Note 6 : Provided that loans to others are for necessary short-term financing by nature, shall specifically note necessary reasons for the loans and purposes of the borrowers, for example, repayment of loans, acquisition of equipment, and financing for operation, etc.

Note 7 : The calculation of line of credit:

The limit on loans granted by the Company to a single party, related party and party with business transactions shall not be more than $25\%$ of the Company's net assets, and limit to others is $20\%$ of the Company's net assets.

The ceiling on loans granted by the Company to others shall not be more than $50\%$ of the Company's net assets, and ceiling on loans granted a short-term financing borrower with no business transactions shall not be more than $40\%$ of the Company's net assets.

The ceiling on loans granted by a subsidiary to others shall not be more than $100\%$ of the Company's net assets, and ceiling on loans granted a short-term financing borrower with no business transactions shall not be more than $40\%$ of the Company's net assets.

Note 8 : The amount was resolved by the Board of Directors.

Formosa Chemicals and Fibre Corporation and subsidiaries

Provision of endorsements and guarantees to others

For the year ended December 31, 2024

Expressed in thousands of NTD

(Except as otherwise indicated)

Table 2

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, 2024 (Note 4)	Outstanding endorsement/guarantee amount at December 31, 2024	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 3)	Provision of endorsements/guarantees by parent company to subsidiary (Note 5)	Provision of endorsements/guarantees by subsidiary to parent company (Note 7)	Provision of endorsements/guarantees to the party in Mainland China (Note 7)	Footnote
		Company name	Relationship with the endorser/guarantor (Note 2)
0	The Company	Formosa Group (Cayman) Limited	6	$ 177,156,377	$ 8,209,000	$ 8,195,250	$ 8,195,250	$ -	3.01	$ 354,312,754	N	N	N	-
1	Formosa Taffeta Co., Ltd.	Formosa Taffeta (Zhongshan) Co., Ltd.	2	23,991,836	1,083,555	917,980	-	-	2.49	47,983,672	Y	N	Y	-
1	Formosa Taffeta Co., Ltd.	Formosa Taffeta (Vietnam) Co., Ltd.	2	23,991,836	1,672,035	1,672,035	163,243	-	4.53	47,983,672	Y	N	N	-
1	Formosa Taffeta Co., Ltd.	Formosa Taffeta (Changshu) Co., Ltd.	2	23,991,836	1,805,925	1,803,175	90,415	-	4.89	47,983,672	Y	N	Y	-
1	Formosa Taffeta Co., Ltd.	Formosa Taffeta (Dong Nai) Co., Ltd.	2	23,991,836	4,350,638	4,344,013	1,850,143	-	11.77	47,983,672	Y	N	N	-

Note 1: The numbers filled in for the endorsements/guarantees provided by the Company or subsidiaries are as follows:
(1) The Company is '0'.
(2) The subsidiaries are numbered in order starting from '1'.
Note 2: Relationship between the endorser/guarantor and the party being endorsed/guaranteed is classified into the following six categories:
(1) Having business relationship.
(2) The endorser/guarantor parent company owns directly more than 50% voting shares of the endorsed/guaranteed subsidiary.
(3) The endorser/guarantor parent company and its subsidiaries jointly own more than 50% voting shares of the endorsed/guaranteed company.
(4) The endorsed/guaranteed parent company directly or indirectly owns more than 90% voting shares of the endorser/guarantor subsidiary.
(5) Mutual guarantee of the trade as required by the construction contract.
(6) Due to joint venture, each shareholder provides endorsements/guarantees to the endorsed/guaranteed company in proportion to its ownership.
(7) Joint guarantee of the performance guarantee for pre-sold home sales contract as required under the Consumer Protection Act.
Note 3: In accordance with Company's procedures of endorsements and guarantees, limit on the Company's total guarantee amount is 130% of the Company's net assets, the limit on endorsement/guarantee to a single party is 50% of the aforementioned total amount. For companies having business relationship with the Company and thus being provided endorsements/guarantees, the limit on endorsements to a single party is the higher value of purchasing or selling.
Note 4: Year-to-date maximum outstanding balance of endorsements/guarantees provided as of the reporting period.
Note 5: Fill in the amount approved by the Board of Directors or the chairman if the chairman has been authorised by the Board of Directors based on subparagraph 8, Article 12 of the Regulations Governing Leaning of Funds and Making of Endorsements/Guarantees by Public Companies.
Note 6: Fill in the actual amount of endorsements/guarantees used by the endorsed/guaranteed company.
Note 7: 'Y' represents cases of provision of endorsements/guarantees by listed parent company to subsidiary, provision by subsidiary to listed parent company, or provision to the party in Mainland China.

Table 2, Page 1

Formosa Chemicals and Fibre Corporation

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

For the year ended December 31, 2024

Table 3

Expressed in thousands of NTD

(Except as otherwise indicated)

Securities held by	Marketable securities (Note 1)	Relationship with the securities issuer (Note 2)	General ledger account	As of December 31, 2024				Footnote
				Number of shares	Book value	Ownership (%)	Fair value
The Company	Mega Private US Dollar Money Market Funds	-	Financial assets at fair value through profit or loss - current	4,554,251	$ 1,846,201	-	$ 1,846,201	-
The Company	Stocks_Formosa Plastics Corp.	Other related parties	Financial assets at fair value through other comprehensive income - current	486,978,694	17,287,743	7.65	17,287,743	-
The Company	Stocks_Nan Ya Plastics Corp.	Other related parties	Financial assets at fair value through other comprehensive income - current	413,327,750	12,358,500	5.21	12,358,500	-
The Company	Stocks_Nan Ya Technology Corp.	Other related parties	Financial assets at fair value through other comprehensive income - current	334,815,409	9,793,351	10.81	9,793,351	-
The Company	Stocks_Formosa Union Chemical Corp.	-	Financial assets at fair value through other comprehensive income - current	14,723,422	299,622	3.09	299,622	-
The Company	Stocks_Asia Pacific Investment Corp.	Other related parties	Financial assets at fair value through other comprehensive income - current	63,621,500	1,337,960	14.97	1,337,960	-
The Company	Stocks_Mai-Liao Harbor Administration Corp.	Other related parties	Financial assets at fair value through other comprehensive income - non-current	39,562,740	1,053,556	17.98	1,053,556	-
The Company	Stocks_Formosa Plastic Corp. U.S.A	Other related parties	Financial assets at fair value through other comprehensive income - non-current	8,999	3,235,223	2.92	3,235,223	-
The Company	Stocks_Taiwan Stock Exchange Corp.	-	Financial assets at fair value through other comprehensive income - non-current	26,639,541	5,270,900	2.00	5,270,900	-
The Company	Stocks_Taiwan Aerospace Corp.	-	Financial assets at fair value through other comprehensive income - non-current	1,070,151	30,050	0.79	30,050	-
The Company	Stocks_Yi-Jih Development Corp.	Other related parties	Financial assets at fair value through other comprehensive income - non-current	63,174	16,995	1.51	16,995	-
The Company	Stocks_Chinese Television System Corp.	-	Financial assets at fair value through other comprehensive income - non-current	2,376,202	28,396	1.41	28,396	-
The Company	Stocks_Formosa Plastics Maritime Corp.	Other related parties	Financial assets at fair value through other comprehensive income - non-current	4,496,333	253,054	18.22	253,054	-
The Company	Stocks_Formosa Development Corp.	Other related parties	Financial assets at fair value through other comprehensive income - non-current	20,471,043	191,404	18.00	191,404	-
The Company	Stocks_Formosa Network Technology Corp.	Other related parties	Financial assets at fair value through other comprehensive income - non-current	2,925,000	455,247	12.50	455,247	-
The Company	Stocks_Formosa Plastics Marine Corp.	Other related parties	Financial assets at fair value through other comprehensive income - non-current	16,234,425	599,862	15.00	599,862	-
The Company	Stocks_Formosa Ocean Group Marine Investment Corp.	Other related parties	Financial assets at fair value through other comprehensive income - non-current	2,622	8,820,458	19.00	8,820,458	-

Table 3, Page 1

Securities held by	Marketable securities( Note 1 )	Relationship with thesecurities issuer ( Note 2 )	Generalledger account	As of December 31, 2024				Footnote
				Number of shares	Book value	Ownership (%)	Fair value
The Company	Stocks_GuangyuanInvestment Corp.	-	Financial assets at fair valuethrough other comprehensiveincome - non-current	3,750,000	$ 38,362	3.91	$ 38,362	-
The Company	Stocks_Mega Growth VentureCapital Co., Ltd.	-	Financial assets at fair valuethrough other comprehensiveincome - non-current	1,041,825	8,949	1.97	8,949	-
The Company	Stocks_Formosa HaTinh(Cayman)Limited	Other related parties	Financial assets at fair valuethrough other comprehensiveincome - non-current	621,178,219	6,719,738	11.43	6,719,738	-
Formosa BiomedicalTechnology Corp.	Stocks_Formosa UnionChemical Corp.	-	Financial assets at fair valuethrough other comprehensiveincome - current	865,373	17,610	0.18	17,610	-
Formosa BiomedicalTechnology Corp.	Maxigen Biotech Inc.	-	Financial assets at fair valuethrough profit or loss -current	8,702,040	425,965	9.76	425,965	-
Formosa BiomedicalTechnology Corp.	Stocks_Formosa NetworkTechnology Corp.	Other related parties	Financial assets at fair valuethrough other comprehensiveincome - non-current	122,120	19,007	0.52	19,007	-
Formosa BiomedicalTechnology Corp.	Stocks_Taiwan LeaderBiotech Corp.	-	Financial assets at fair valuethrough other comprehensiveincome - non-current	1,008,000	36,439	4.24	36,439	-
Formosa BiomedicalTechnology Corp.	Stocks_Apeccella BiomedicalInc.	-	Financial assets at fair valuethrough other comprehensiveincome - non-current	3,600,000	9,324	5.00	9,324	-
Formosa BiomedicalTechnology Corp.	Stocks_United PerformanceMaterials Corp.	Other related parties	Financial assets at fair valuethrough other comprehensiveincome - non-current	423,720	5,953	0.46	5,953	-
Formosa BiomedicalTechnology Corp.	Stocks_United Biopharma(Cayman), Inc.	-	Financial assets at fair valuethrough other comprehensiveincome - non-current	23,559,814	-	11.27	-	-
Formosa BiomedicalTechnology Corp.	Stocks_UBI Pharma Inc.	-	Financial assets at fair valuethrough other comprehensiveincome - non-current	3,418,109	107,431	2.89	107,431	-
Formosa BiomedicalTechnology Corp.	Stock_Formosa Smart EnergyTech Corp.	Other related parties	Financial assets at fair valuethrough other comprehensiveincome - non-current	85,000,000	834,700	5.00	834,700	-
Formosa BiomedicalTechnology Corp.	Stocks_Fun Lead ChangeCO., LTD.	Other related parties	Financial assets at fair valuethrough other comprehensiveincome - non-current	700,000	28,000	12.73	28,000	-
Formosa BiomedicalTechnology Corp.	Stocks_Silicon BasedMolecular SensoringTechnology CO., LTD.	Other related parties	Financial assets at fair valuethrough other comprehensiveincome - non-current	7,500,000	60,000	14.92	60,000	-
Formosa Taffeta Co., Ltd.	Stocks_Formosa Chemicals &Fibre Corp.	Ultimate parent company	Financial assets at fair valuethrough other comprehensiveincome - current	12,169,610	332,230	0.21	332,230	3
Formosa Taffeta Co., Ltd.	Stocks_Pacific Electric Wire& Cable Corp., Ltd.	-	Financial assets at fair valuethrough other comprehensiveincome - current	35	-	-	-	-
Formosa Taffeta Co., Ltd.	Stocks_Formosa PlasticsCorp.	Other related parties	Financial assets at fair valuethrough other comprehensiveincome - current	640	23	-	23	-
Formosa Taffeta Co., Ltd.	Stocks_Nan Ya Plastics Corp.	Other related parties	Financial assets at fair valuethrough other comprehensiveincome - current	482,194	14,418	0.01	14,418	-
Formosa Taffeta Co., Ltd.	Stocks_Asia PacificInvestment Corp.	Other related parties	Financial assets at fair valuethrough other comprehensiveincome - current	10,000,000	210,300	2.35	210,300	-
Formosa Taffeta Co., Ltd.	Stocks_Nan Ya TechnologyCorp.	Other related parties	Financial assets at fair valuethrough other comprehensiveincome - non-current	7,711,010	225,547	0.25	225,547	-

Table 3, Page 2

Securities held by	Marketable securities( Note 1 )	Relationship with the securities issuer ( Note 2 )	General ledger account	As of December 31, 2024				Footnote
				Number of shares	Book value	Ownership (%)	Fair value
Formosa Taffeta Co., Ltd.	Stocks_Formosa Petrochemical Corp.	Other related parties	Financial assets at fair value through other comprehensive income - non-current	365,267,576	$ 12,619,995	3.83	$ 12,619,995	-
Formosa Taffeta Co., Ltd.	Stocks_Syntronix Corporation	-	Financial assets at fair value through other comprehensive income - non-current	234,166	8,062	0.54	8,062	-
Formosa Taffeta Co., Ltd.	Stocks_Toa Resin Corp., Ltd.	Other related parties	Financial assets at fair value through other comprehensive income - non-current	14,400	45,026	10.00	45,026	-
Formosa Taffeta Co., Ltd.	Stocks_Shin Yun Natural Gas Corp.	-	Financial assets at fair value through other comprehensive income - non-current	995,829	26,828	1.20	26,828	-
Formosa Taffeta Co., Ltd.	FG INC	Other related parties	Financial assets at fair value through other comprehensive income - non-current	600	273,006	3.00	273,006	-
Formosa Taffeta Co., Ltd.	NKFG Co	Other related parties	Financial assets at fair value through other comprehensive income - non-current	1,838,426	19,818	1.16	19,818	-
Formosa Taffeta Co., Ltd.	Stocks_Formosa Hu Tinh (Cayman) Limited	Other related parties	Financial assets at fair value through other comprehensive income - non-current	209,010,676	2,261,297	3.85	2,261,297	-
Formosa Development Co., Ltd.	Stocks_Formosa Taffeta Co., Ltd.	Parent company	Financial assets at fair value through other comprehensive income - non-current	2,193,228	40,246	0.13	40,246	-

Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities, as defined in IAS 39 "Financial instruments: Recognition and Measurement".
Note 2: The column is left blank if the issuer of marketable securities is non-related party.
Note 3: The Company's stocks held by the subsidiaries—Formosa Taffeta Co., Ltd. are deemed as treasury stocks. Details are provided in Note 6 (15).

Formosa Chemicals and Fibre Corporation and subsidiaries

Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company's paid-in capital

For the year ended December 31, 2024

Table 4

Expressed in thousands of NTD

(Except as otherwise indicated)

Investor	Marketable securities (Note 1)	General ledger account	Counterparty (Note 2)	Relationship with the investor (Note 2)	Balance as at January 1, 2024		Addition (Note 3)		Disposal (Note 3)				Balance as at December 31, 2024
					Number of shares	Amount	Number of shares	Amount	Number of shares	Selling price	Book value	Gain (loss) on disposal	Number of shares	Amount
The Company	Formosa Smart Energy Tech Corp.	Investments measured by equity method	Formosa Smart Energy Tech Corp.	Associates	140,000,000	$ 1,384,277	200,000,000	$ 2,000,000	-	$ -	$ -	$ -	340,000,000	$ 3,326,411
Formosa Biomedical Technology Corp.	HONG JING RESOURCES CO., LTD.	Investments measured by equity method	HONG JING RESOURCES CO., LTD.	None	27,336,218	652,377	8,166,027	326,641	-	-	-	-	34,888,245	859,127
Formosa Biomedical Technology Corp.	HONG JING RESOURCES CO., LTD.	Investments measured by equity method	HONG JING RESOURCES CO., LTD.	None	27,336,218	652,377	-	-	614,000	24,486	14,089	-	34,888,245	859,127
Formosa Biomedical Technology Corp.	Formosatree CO., LTD.	Investments measured by equity method	Formosatree CO., LTD.	Associates	-	-	23,700,000	237,000	-	-	-	-	23,700,000	235,987
Formosa Biomedical Technology Corp.	Formosa Smart Energy Tech Corp.	Financial assets at fair value through other comprehensive	-	-	35,000,000	347,200	50,000,000	500,000	-	-	-	-	85,000,000	834,700

Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities.
Note 2: Fill in the columns the counterparty and relationship if securities are accounted for under the equity method; otherwise leave the columns blank.
Note 3: Aggregate purchases and sales amounts should be calculated separately at their market values to verify whether they individually reach $300 million or 20% of paid-in capital or more.
Note 4: Paid-in capital referred to herein is the paid-in capital of parent company. In case that shares were issued with no par value or a par value other than NTS10 per share, the 20% of paid-in capital level shall be replaced by 10% of equity attributable to owners of the parent in the calculation.

Formosa Chemicals and Fibre Corporation and subsidiaries

Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more

For the year ended December 31, 2024

Table 5

Expressed in thousands of NTD

(Except as otherwise indicated)

Purchaser/seller	Counterparty	Relationship with the counterparty	Transaction				Differences in transaction terms compared to third party transactions		Notes/accounts receivable (payable)			Footnote (Note 1)
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance		Percentage of total notes/accounts receivable (payable)
The Company	Formosa Plastics Corp.	Other related parties	Sales	($ 3,130,254)	( 1)	30 days	$ -	-	$ 193,842		1	-
The Company	Nan Ya Plastics Corp.	Other related parties	Sales	( 23,404,477)	( 11)	30 days	-	-	1,820,523		10	-
The Company	Formosa Taffeta Co., Ltd.	Subsidiary	Sales	( 626,791)	-	60 days	-	-	Notes receivable	28,373	27	-
									Accounts receivable	260,632	1	-
The Company	Formosa Taffeta (Dong Nai) Co., Ltd.	Subsidiary	Sales	( 162,346)	-	60 days	-	-	-		-	-
The Company	Formosa Petrochemical Corp.	Associates	Sales	( 34,951,759)	( 16)	30 days	-	-	2,844,930		16	-
The Company	Formosa Chemicals Industries (Ningbo) Co., Ltd	Subsidiary	Sales	( 32,219,795)	( 15)	90 days	-	-	4,002,573		23	-
The Company	Formosa Chemicals Industries Co.,Ltd	Subsidiary	Sales	( 719,900)	-	30 days	-	-	278,286		2	-
The Company	PFG Fiber Glass Corp.	Other related parties	Sales	( 304,070)	-	30 days	-	-	24,788		-	-
The Company	Formosa Idemitsu Petrochemical Corp.	Subsidiary	Sales	( 8,656,180)	( 4)	30 days	-	-	755,402		4	-
The Company	Formosa Plastics Corp., U.S.A.	Other related parties	Sales	( 1,163,703)	( 1)	30 days	-	-	345,948		2	-
The Company	Nan Ya Plastics Corp., U.S.A	Other related parties	Sales	( 313,922)	-	30 days	-	-	77,296		-	-

Table 5, Page 1

			Transaction				Differences in transaction terms compared to third party transactions		Notes/accounts receivable (payable)
Purchaser/seller	Counterparty	Relationship with the counterparty	Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)	Footnote (Note 1)
The Company	Formosa Plastics Corp.	Other related parties	Purchases	$ 3,492,183	2	30 days	$ -	-	($ 321,203)	( 2)	-
The Company	Nan Ya Plastics Corp.	Other related parties	Purchases	5,196,219	3	30 days	-	-	( 571,966)	( 4)	-
The Company	Formosa Petrochemical Corp.	Associates	Purchases	140,590,191	74	30 days	-	-	( 9,785,022)	( 76)	-
Formosa Biomedical Technology Corp.	Formosa Lithium Iron Oxide Corp.	Other related parties	Sales	( 358,530)	( 11)	30 days	-	-	-	-	-
Formosa Biomedical Technology Corp.	Nan Ya Technology Corp.	Other related parties	Sales	( 118,291)	( 4)	30 days	-	-	3	-	-
Formosa Waters Technology Co., Ltd.	Formosa Petrochemical Corp.	Associates	Sales	( 102,981)	( 26)	30 days	-	-	-	-	-
Formosa INEOS Chemicals Corp.	The Company	Parent company	Sales	( 732,363)	( 14)	30 days	-	-	65,944	-	-
Formosa INEOS Chemicals Corp.	INEOS ACETYLS (MALAYSIA) SDN BHD	Associates	Sales	( 2,257,667)	( 54)	90 days after shipped	-	-	468,968	58	-
Formosa INEOS Chemicals Corp.	Formosa Plastics Corp.	Other related parties	Sales	( 239,292)	( 4)	15 days	-	-	-	-	-
Formosa INEOS Chemicals Corp.	Nan Ya Plastics Corp.	Other related parties	Sales	( 106,184)	( 2)	30 days	-	-	6,422	1	-
Formosa INEOS Chemicals Corp.	Formosa Petrochemical Corp.	Associates	Sales	( 638,013)	( 12)	30 days	-	-	67,884	-	-
Formosa INEOS Chemicals Corp.	Formosa Petrochemical Corp.	Associates	Purchases	2,514,901	60	45 days	-	-	( 192,405)	( 83)	-
Formosa Power (Ningbo) Co., Ltd.	Formosa Chemicals Industries (Ningbo) Co., Ltd.	Associates	Sales	( 4,292,158)	( 53)	30 days	-	-	378,710	49	-
Formosa Power (Ningbo) Co., Ltd.	Formosa Plastics (Ningbo) Co., Ltd.	Other related parties	Sales	( 2,795,253)	( 34)	30 days	-	-	278,396	36	-
Formosa Power (Ningbo) Co., Ltd.	Nan Ya Plastics (Ningbo) Corp.	Other related parties	Sales	( 800,218)	( 10)	30 days	-	-	89,423	12	-
Formosa Chemicals Industries (Ningbo) Co., Ltd.	The Company	Parent company	Sales	( 644,159)	( 1)	30 days	-	-	-	-	-

Table 5, Page 2

			Transaction				Differences in transaction terms compared to third party transactions		Notes/accounts receivable (payable)
Purchaser/seller	Counterparty	Relationship with the counterparty	Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)	Footnote (Note 1)
Formosa Chemicals Industries (Ningbo) Co., Ltd.	Nan Ya Plastics (Ningbo) Corp.	Other related parties	Sales	($ 9,876,097)	( 9)	90 days	$ -	-	$ -	941,134	9	-
Formosa Chemicals Industries (Ningbo) Co., Ltd.	Formosa Industries Corp.	Associates	Sales	( 597,422)	( 1)	30 days	-	-	-	41,616	-	-
Formosa Chemicals Industries (Ningbo) Co., Ltd.	Formosa Plastics Corp.	Other related parties	Purchases	1,073,889	1	90 days	-	-	(	107,194)	( 2)	-
Formosa Industries Corp.	The Company	Parent company	Sales	( 1,580,129)	( 9)	60 days	-	-	-	202,244	8	-
Formosa Industries Corp.	Formosa Taffeta (Dong Nai) Co., Ltd.	Associates	Sales	( 479,312)	( 3)	60 days	-	-	-	62,117	2	-
Formosa Industries Corp.	Formosa Plastics Corp.	Other related parties	Purchases	234,014	1	30 days	-	-	(	40,644)	( 3)	-
Formosa Industries Corp.	Nan Ya Plastics Corp.	Other related parties	Sales	( 266,817)	( 1)	30 days	-	-	-	45,438	2	-
Formosa Industries Corp.	Nan Ya Plastics Corp.	Other related parties	Purchases	251,429	2	30 days	-	-	(	54,149)	( 3)	-
Formosa Industries Corp.	Nan Ya Draw-Textured Yarn (Kunshan) Co., Ltd	Other related parties	Purchases	609,667	4	60 days	-	-	(	184,358)	( 12)	-
Formosa Idemitsu Petrochemical Corp.	The Company	Parent company	Sales	( 1,408,827)	( 16)	30 days	-	-	-	144,598	22	-
Formosa Idemitsu Petrochemical Corp.	Idemitsu Chemicals Japan Co., Ltd.	Associates	Sales	( 361,172)	( 4)	30 days after closing date	-	-	-	36,769	6	-
Formosa Idemitsu Petrochemical Corp.	Idemitsu Chemicals Taiwan Corp.	Associates	Sales	( 1,153,948)	( 13)	30 days after closing date	-	-	-	170,726	27	-

Table 5, Page 3

			Transaction				Differences in transaction terms compared to third party transactions		Notes/accounts receivable (payable)
Purchaser/seller	Counterparty	Relationship with the counterparty	Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)	Footnote (Note 1)
Formosa Idemitsu Petrochemical Corp.	Idemitsu Kosan Co., Ltd.	Associates	Sales	($ 599,802)	( 7)	30 days after closing date	$ -	-	$ 35,337	5	-
Formosa Idemitsu Petrochemical Corp.	Idemitsu Chemicals (Hong Kong) Co., Ltd.	Associates	Sales	( 567,896)	( 7)	30 days after closing date	-	-	82,595	13	-
Formosa Idemitsu Petrochemical Corp.	Idemitsu Chemicals (U.S.A) Co., Ltd.	Associates	Sales	( 300,993)	( 3)	30 days after closing date	-	-	20,649	3	-
Formosa Taffeta Co., Ltd.	Quang Viet Enterprise Co., Ltd.	Associates	Sales	( 193,717)	( 1)	Pay by mail transfer 60 days after delivery	-	-	26,093	2	-
Formosa Taffeta Co., Ltd.	Yugen Co., Ltd.	Other related parties	Sales	( 219,240)	( 1)	Pay 120 days after delivery	-	-	46,107	3	-
Formosa Taffeta Co., Ltd.	Formosa Taffeta (Dong Nai) Corp.	Subsidiary	Sales	( 141,863)	( 1)	60 days after monthly billings	-	-	14,455	1	-
Formosa Taffeta Co., Ltd.	Formosa Petrochemical Corp.	Other related parties	Purchases	9,614,261	57	Pay every 15 days by mail transfer	-	-	( 527,118)	( 53)	-
Formosa Taffeta Co., Ltd.	Nan Ya Plastics Corp.	Other related parties	Purchases	500,341	3	Pay by mail transfer on the 15th of the following month	-	-	( 38,009)	( 4)	-
Formosa Taffeta Co., Ltd.	Formosa Plastics Corp.	Other related parties	Purchases	210,945	1	Pay by mail transfer on the 15th of the following month	-	-	( 10,941)	( 1)	-
Formosa Taffeta (Zhong Shan) Co., Ltd.	Formosa Taffeta (Changshu) Co., Ltd.	Associates	Sales	( 168,002)	( 11)	60 days after monthly billings	-	-	22,502	10	-

Table 5, Page 4

Purchaser/seller	Counterparty	Relationship with the counterparty	Transaction				Differences in transaction terms compared to third party transactions		Notes/accounts receivable (payable)
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)	Footnote (Note 1)
Formosa Taffeta (Zhong Shan) Co., Ltd.	Formosa Taffeta Co., Ltd.	Parent company	Sales	($ 198,434)	( 13)	60 days after monthly billings	$ -	-	$	68,082	30	-
Formosa Taffeta (Vietnam) Co., Ltd.	Kuang Yueh (Vietnam) Co., Ltd.	Other related parties	Sales	( 150,864)	( 5)	60 days after monthly billings	-	-		44,797	10	-
Formosa Taffeta (Dong Nai) Co., Ltd.	Formosa Taffeta (Vietnam) Co., Ltd.	Associates	Sales	( 407,098)	( 13)	60 days after monthly billings	-	-		32,924	6	-
Formosa Taffeta (Dong Nai) Co., Ltd.	Kuang Yueh (Vietnam) Co., Ltd.	Other related parties	Sales	( 192,909)	( 6)	60 days after monthly billings	-	-		51,173	9	-

Note 1: The disclosed transaction is the revenue side and related transactions are no longer disclosed.

Formosa Chemicals and Fibre Corporation and subsidiaries

Receivables from related parties reaching $100 million or 20% of paid-in capital or more

For the year ended December 31, 2024

Table 6

Expressed in thousands of NTD

(Except as otherwise indicated)

Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31, 2024 (Note 1)	Turnover rate	Overdue receivables		Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts
					Amount	Action taken
The Company	Formosa Plastics Corp.	Other related parties	$	193,842	2.93	$	-	$ 193,842	$
The Company	Nan Ya Plastics Corp.	Other related parties		1,820,523	2.42		-	1,661,249
The Company	Formosa Taffeta Co., Ltd.	Subsidiary	Notes receivable	28,373	1.46		-	9,690
			Accounts receivable	260,632			-	58,553
The Company	Formosa Petrochemical Corp.	Associates		2,844,930	2.66		-	2,844,930
The Company	Formosa Industries Corp.	Subsidiary	Accounts receivable	278,286	1.54		-	41,449
			Other receivables	122,580			-	20,780
The Company	Formosa Chemicals Industries (Ningbo) Co., Ltd.	Subsidiary		4,002,573	2.57		-	1,890,041
The Company	Formosa Plastic Corp. U.S.A.	Other related parties		345,948	2.88		-	100,924
The Company	Formosa Idemitsu Petrochemical Corp.	Subsidiary		755,402	2.27		-	755,402
Formosa INEOS Chemicals Corp.	INEOS ACETYLS (MALAYSIA) SDN BHD	Associates		468,968	2.96		-	362,105
Formosa Idemitsu Petrochemical Corp.	The company	Parent company		144,598	1.97		-	144,598
Formosa Idemitsu Petrochemical Corp.	Idemitsu Chemicals Taiwan Corp.	Associates		170,726	2.28		-	170,726
Formosa Power (Ningbo) Co., Ltd.	Formosa Chemicals Industries (Ningbo) Co., Ltd.	Associates		378,710	2.29		-	378,710
Formosa Power (Ningbo) Co., Ltd.	Formosa Plastics (Ningbo) Co., Ltd.	Other related parties		278,396	2.52		-	278,396
Formosa Chemicals Industries (Ningbo) Co., Ltd.	Nan Ya Plastics (Ningbo) Corp.	Other related parties		941,134	3.26		-	941,134
Formosa Industries Corp.	The company	Associates		202,244	3.65		-	72,565

Note 1: Fill in separately the balances of accounts receivable-related parties, notes receivable-related parties, other receivables-related parties...

Formosa Chemicals and Fibre Corporation and subsidiaries

Significant inter-company transactions during the reporting period

For the year ended December 31, 2024

Table 7

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	Formosa Chemicals Industries (Ningbo) Co., Ltd.	1	Sales revenue	($ 32,219,795)	In regular terms	(9)
0	The Company	Formosa Idemitsu Petrochemical Corp.	1	Sales revenue	( 8,656,180)	In regular terms	(2)

Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:
(1) Parent company is '0'.
(2) The subsidiaries are numbered in order starting from '1'.
Note 2: Relationship between transaction company and counterparty is classified into the following three categories:
(1) Parent company to subsidiary.
(2) Subsidiary to parent company.
(3) Subsidiary to subsidiary.
Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts.
Note 4: If the transaction amount in this sheet reaches 3% of consolidated operating income or total assets, it is considered material.

Table 7, Page 1

Formosa Chemicals and Fibre Corporation and subsidiaries

Information on investees (Excluding those in Mainland China)

For the year ended December 31, 2024

Expressed in thousands of NTD

(Except as otherwise indicated)

Table 8

Investor	Investee (Note 1)	Location	Main business activities	Initial investment amount		Shares held as at December 31, 2024			Net profit (loss) of the investee for the year ended December 31, 2024	Investment income (loss) recognised by the Company for the year ended December 31, 2024	Footnote
				Balance as at December 31, 2024	Balance as at December 31, 2023	Number of shares	Ownership (%)	Book value
The Company	Formosa Taffeta Co., Ltd.	Taiwan	Spinning	$ 719,003	$ 719,003	630,022,431	37.40	$ 13,375,785	$ 1,490,185	$ 551,640	-
The Company	Formosa Heavy Industries Corp.	Taiwan	Machinery	2,497,721	2,497,721	661,334,402	32.91	5,775,112	( 1,650,957)	( 543,330)	-
The Company	Formosa Fairway Corporation	Taiwan	Transportation	-	33,320	-	0.00	-	( 9,613)	( 3,204)	-
The Company	Formosa Plastics Transport Corp.	Taiwan	Transportation	299,272	299,272	6,566,384	33.33	1,400,881	322,179	107,382	-
The Company	Formosa Petrochemical Corp.	Taiwan	Chemistry	25,842,468	25,842,468	2,300,799,801	24.15	71,636,022	5,970,918	1,549,764	-
The Company	Mai-Liao Power Corp.	Taiwan	Electricity generation	5,985,531	5,985,531	764,201,100	24.94	16,146,749	12,795,766	3,191,358	-
The Company	FCFC Investment Corp. (Cayman)	Cayman Islands	Investments	34,012,602	34,012,602	56,000	100.00	60,866,947	( 1,470,387)	( 1,470,387)	-
The Company	Hwa Ya Science Park Management Consulting Co, Ltd.	Taiwan	Management	340	340	33,000	33.00	5,060	489	161	-
The Company	Chia-Nan Enterprise Corporation	Taiwan	Electricity generation	321,413	339,190	21,163,000	51.00	357,695	93,889	47,884	-
The Company	Formosa Idemitsu Petrochemical Corp.	Taiwan	Wholesale and retail of petrochemical and plastic raw materials	299,999	299,999	60,000,000	50.00	1,166,887	39,794	17,903	-
The Company	Formosa Industries Corp.	Vietnam	Textile, polyester staple fibre, cotton, and electricity generation	8,435,801	8,435,801	-	42.50	5,135,670	( 747,837)	( 317,831)	-
The Company	Formosa INEOS Chemicals Corp.	Taiwan	Chemistry, international of petrochemistry	1,201,500	1,201,500	120,150,000	50.00	1,859,716	61,656	32,021	-

Table 8, Page 1

Investor	Investee( Note 1 )	Location	Main business activities	Initial investment amount		Shares held as at December 31, 2024			Net profit (loss)of the investee for the yearended December 31, 2024	Investment income (loss)recognised by theCompany for the yearended December 31, 2024	Footnote
				Balance as atDecember 31, 2024	Balance as atDecember 31, 2023	Number of shares	Ownership (%)	Book value
The Company	Formosa Environmental Technology Co.	Taiwan	Disposals of wastes and sewage	$ 417,145	$ 417,145	41,714,475	24.34	$ 240,481	$ 19,705	$ 4,796	-
The Company	Formosa Biomedical Technology Corp.	Taiwan	Manufacturing and sale of cosmetics	1,566,879	1,566,879	147,556,136	88.59	2,746,083	314,569	278,683	-
The Company	Formosa Carpet Corp.	Taiwan	Yarn spinning mills, finishing of textiles and carpet manufacturing	300,000	300,000	22,037,185	100.00	178,172	(3,120)	(3,120)	-
The Company	Guo Su Plastic Industry Co., Ltd.	Taiwan	Manufacture of synthetic resin and plastic products	95,000	95,000	3,675,000	49.00	50,768	(9,828)	(4,816)	-
The Company	Formosa Synthetic Rubber (Hong Kong) Co., Ltd.	Hong Kong	Investments	4,214,914	4,214,914	138,333,334	33.34	1,468,190	(490,063)	(163,388)	-
The Company	Formosa Resources Corporation	Taiwan	Mining industry and its trading, wholesale of chemical material and international trading	9,099,071	9,099,071	909,907,125	25.00	6,403,506	(8,052,194)	(2,013,048)	-
The Company	Formosa Group Corp. (Cayman)	Cayman Islands	Investments	377	377	12,500	25.00	968,838	305,395	76,349	-
The Company	Formosa Plastics Construction Corp.	Taiwan	Development and sale of rebuilt housing, buildings and plants under urban redevelopment	1,100,000	1,100,000	110,000,000	33.33	1,015,981	(26,397)	(8,798)	-
The Company	FG INC.	United States	Investments	3,413,031	3,413,031	6,000	30.00	3,412,754	(383,760)	(119,434)	-
The Company	Formosa Smart Energy Tech Corp.	Taiwan	Renewable energy - investment, research and development of energy storage equipment	3,400,000	1,400,000	340,000,000	20.00	3,326,411	(469,121)	(114,604)	-
The Company	Formosa Green Power Corp.	Taiwan	Renewable-energy-based electricity retailing corporation	5,000	5,000	500,000	100.00	4,853	(25)	(25)	-
The Company	Formosa Renewable Energy Corp.	Taiwan	Renewable energy technical services	50,000	-	5,000,000	100.00	50,250	250	250	-

Table 8, Page 2

Investor	Investee (Note 1)	Location	Main business activities	Initial investment amount		Shares held as at December 31, 2024			Net profit (loss) of the investee for the year ended December 31, 2024	Investment income (loss) recognised by the Company for the year ended December 31, 2024	Footnote
				Balance as at December 31, 2024	Balance as at December 31, 2023	Number of shares	Ownership (%)	Book value
FCFC Investment Corp. (Cayman)	Formosa Chemicals & Fibre (Hong Kong) Co., Ltd.	Hong Kong	Investments	$ 29,959,815	$ 29,959,815	-	100.00	$ 46,107,531	($ 2,644,050)	($ 2,644,050)	-
Formosa Biomedical Technology Corp.	Beyoung International Corp.	Taiwan	International trading	90,000	90,000	467,400	30.00	92,352	( 5,355)	( 1,607)	-
Formosa Biomedical Technology Corp.	Hong Jing Resources Corp.	Taiwan	Recycle of spent catalyst	812,517	476,196	34,888,245	90.61	859,127	168,046	150,148	-
Formosa Biomedical Technology Corp.	Formosa Biomedical Technology (Samoa) Co., Ltd.	Samoa	Investments	29,610	29,610	-	100.00	20,871	5,014	5,014	-
Formosa Biomedical Technology Corp.	Formosa Waters Technology Co., Ltd.	Taiwan	1. Industrial Catalyst Manufacturing 2. Wholesale of Other Chemical Products	7,650	7,650	765,001	57.00	37,400	34,796	19,834	-
Formosa Biomedical Technology Corp.	Ivy Life Sciences Co., Ltd.	Taiwan	Research and development and clinical application of cell therapy technologies	755,032	755,032	62,342,000	51.00	755,552	6,961	3,551	-
Formosa Biomedical Technology Corp.	Formosa Biodk Energy Crop. (Japan)	Japan	Manufacturing and sale of battery energy storage systems and related products	17,568	17,568	72,105	57.45	4,201	( 4,951)	( 2,845)	-
Formosa Biomedical Technology Corp.	Formosa Eco Life Technology Co., Ltd	Taiwan	Sales of cleaning supplies	12,926	12,926	1,292,597	70.00	8,755	( 1,959)	( 1,371)	-
Formosa Biomedical Technology Corp.	Formosatree CO., LTD.	Taiwan	Operation of energy storage	237,000	-	23,700,000	30.00	235,987	( 3,375)	( 1,013)	-
Formosa Biomedical Technology Corp.	Formosa Biomedical Maritrial Technology Corp.	Taiwan	Immunocyte capture and separation technology applications	50,000	-	5,000,000	52.63	50,023	23	23	-

Table 8, Page 3

Investor	Investee (Note 1)	Location	Main business activities	Initial investment amount		Shares held as at December 31, 2024			Net profit (loss) of the investee for the year ended December 31, 2024	Investment income (loss) recognised by the Company for the year ended December 31, 2024	Footnote
				Balance as at December 31, 2024	Balance as at December 31, 2023	Number of shares	Ownership (%)	Book value
Formosa Taffeta Co., Ltd.	Formosa Taffeta (Hong Kong) Co., Ltd.	Hong Kong	Sale of spun fabrics and filament textile	$ 2,758,947	$ 2,758,947	-	100.00	$ 3,917,478	$ 227,523	$ 227,523	-
Formosa Taffeta Co., Ltd.	Formosa Advanced Technologies Co., Ltd.	Taiwan	IC assembly, testing and modules	1,762,711	1,762,711	135,686,472	30.68	4,707,305	900,345	276,226	-
Formosa Taffeta Co., Ltd.	Formosa Development Co., Ltd.	Taiwan	1. Handling urban land consolidation 2. Development, rent and sale of industrial plants, residences and building	114,912	114,912	16,100,000	100.00	170,359	8,340	7,243	-
Formosa Taffeta Co., Ltd.	Formosa Taffeta (Vietnam) Co., Ltd.	Vietnam	Production, processing, further processing various yarn and cotton cloth, dyeing and finishing clothes, curtains, towels, bed covers and carpets	1,709,221	1,709,221	-	100.00	2,538,006	178,987	178,987	-
Formosa Taffeta Co., Ltd.	Kuang Yueh Co., Ltd.	Taiwan	Processing and production of ready-to-wear, processing and trading of cotton cloth, and import and export of the aforementioned products	213,771	213,771	18,595,352	17.98	1,441,990	401,988	75,655	-
Formosa Taffeta Co., Ltd.	Formosa Industries Corp.	Vietnam	Synthetic fiber, spinning, weaving, dyeing and finishing and electricity generation	1,987,122	1,987,122	-	10.00	1,286,333 (	745,614) (	74,561)	-
Formosa Taffeta Co., Ltd.	Schoeller Textil AG	Switzerland	Textile R&D, production and sales	1,285,507	1,285,507	21,874	50.00	817,647 (	347,803) (	173,901)	-
Formosa Taffeta Co., Ltd.	Nan Ya Optical Corp.	Taiwan	LED lighting system, lighting piping engineering design planning, manufacturing and installation	309,370	263,327	8,840,262	19.18	208,865	78,702	14,438	-

Table 8, Page 4

Investor	Investee (Note 1)	Location	Main business activities	Initial investment amount		Shares held as at December 31, 2024			Net profit (loss) of the investee for the year ended December 31, 2024	Investment income (loss) recognised by the Company for the year ended December 31, 2024	Footnote
				Balance as at December 31, 2024	Balance as at December 31, 2023	Number of shares	Ownership (%)	Book value
Formosa Taffeta Co., Ltd.	Formosa Taffeta (Dong Nai) Co., Ltd.	Vietnam	Production, processing and sale of various dyeing and finishing textiles and yarn	$ 2,806,938	$ 2,806,938	-	100.00	$ 2,682,054	($ 39,542)	($ 39,542)	-
Formosa Development Co., Ltd.	Formosa Advanced Technologies Co., Ltd.	Taiwan	IC assembly, testing and modules	21,119	21,119	469,500	0.11	16,095	900,345	956	-
Formosa Development Co., Ltd.	Public More International Co., Ltd.	Taiwan	Employment service, manpower allocation and agency service	5,000	5,000	-	100.00	16,518	5,419	5,419	-
Public More International Co., Ltd.	Kuang Yueh Co., Ltd.	Taiwan	Processing and production of ready-towear, processing and trading of cotton cloth, and import and export of the aforementioned products	1,591	1,591	15,000	0.01	1,712	401,988	61	-

Note 1: If a public company is equipped with an overseas holding company and takes consolidated financial report as the main financial report according to the local law rules, it can only disclose the information of the overseas holding company about the disclosure of related overseas investee information.
Note 2: If situation does not belong to Note 1, fill in the columns according to the following regulations:
(1)The columns of 'Investee', 'Location', 'Main business activities', Initial investment amount' and 'Shares held as at December 31, 2024 should fill orderly in the Company's (public company's) information on investees and every directly or indirectly controlled investee's investment information, and note the relationship between the Company (public company) and its investee each (ex. direct subsidiary or indirect subsidiary) in the 'footnote' column.
(2)The 'Net profit (loss) of the investee for the year ended December 31, 2024 column should fill in amount of net profit (loss) of the investee for this period.
(3)The 'Investment income (loss) recognised by the Company for the year ended December 31, 2024 column should fill in the Company (public company) recognised investment income (loss) of its direct subsidiary and recognised investment income (loss) of its investee accounted for under the equity method for this period. When filling in recognised investment income (loss) of its direct subsidiary, the Company (public company) should confirm that direct subsidiary's net profit (loss) for this period has included its investment income (loss) which shall be recognised by regulations.

Formosa Chemicals and Fibre Corporation and subsidiaries

Information on investments in Mainland China

For the year ended December 31, 2024

Table 9

Expressed in thousands of NTD

(Except as otherwise indicated)

Investee in Mainland China	Main business activities	Paid-in capital	Investment method (Note 1)	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2024	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the year ended December 31, 2024		Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2024	Net income of investee for the year ended December 31, 2024	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31, 2024	Book value of investments in Mainland China as of December 31, 2024	Accumulated amount of investment income remitted back to Taiwan as of December 31, 2024
					Remitted to Mainland China	Remitted back to Taiwan							Footnote
Formosa Power (Ningbo) Co., Ltd.	Cogeneration power generation business	$ 4,834,511	1	$ 4,051,414	$ -	$ -	$ 4,051,414	$ 1,173,662	100.00	$ 1,173,662	$ 14,701,255	$ 1,596,328	-
Formosa Chemicals Industries (Ningbo) Co., Ltd.	Production and market of PTA	35,575,404	1	29,959,815	-	-	29,959,815	( 2,644,050)	100.00	( 2,644,050)	46,107,531	2,003,898	-
Formosa Synthetic Rubber (Ningbo) Co., Ltd.	Production and sale of synthetic rubber	12,777,478	4	4,163,050	-	-	4,163,050	( 490,063)	33.34	( 163,388)	1,468,190	-	-
Formosa Biomedical Trading (Shanghai) Co., Ltd.	Investments	29,610	1	29,610	-	-	29,610	5,014	100.00	5,014	20,871	-	-
Formosa Taffeta (Zhong Shan) Co., Ltd.	Production and sale of polyester and polyamide fabrics	1,402,085	2	1,402,085	-	-	1,402,085	179,031	100.00	179,031	2,580,472	43,914	3

Investee in Mainland China	Main business activities	Paid-in capital	Investment method (Note 1)	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2024	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the year ended December 31, 2024		Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2024	Net income of investee for the year ended December 31, 2024	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31, 2024	Book value of investments in Mainland China as of December 31, 2024	Accumulated amount of investment income remitted back to Taiwan as of December 31, 2024
					Remitted to Mainland China	Remitted back to Taiwan

Formosa Taffeta (Changshu) Co., Ltd.	Weaving and dyeing as well as post dressing of high-grade loomage face fabric	$ 1,302,019	2	$ 1,334,739	$ -	$ -	$ 1,334,739	$ 49,543	100.00	$ 49,543	$ 1,190,979	$ -	4

Note 1: Investment methods are classified into the following three categories.

(1) Directly invest in a company in Mainland China..
(2) Through investing in an existing company in the third area, which then invested in the investee in Mainland China.
(3) Others
(4) Formosa Power (Ningbo) Co., Ltd. is an investee company in Mainland China through the Company's investee - FCFC Investment Corp. (Cayman).
Formosa Chemicals Industries (Ningbo) Co., Ltd., Formosa PS (Ningbo) Co., Ltd., Formosa ABS Plastics (Ningbo) Co., Ltd. and Formosa Phenol (Ningbo) Limited Co. were investee companies in Mainland China through the Company's investee - FCFC Investment Corp. (Cayman). After share structure adjustment in 2008 and 2014, the parent company of the 4 investees became Formosa Chemicals & Fibre (Hong Kong) Co., Ltd. Formosa Chemicals & Fibre (Hong Kong) Co., Ltd. is a wholly-owned subsidiary through reinvestment of FCFC Investment Corp. (Cayman).
The Company reorganised its investment structure through a merger of 4 investees in Mainland China, namely, Formosa Chemicals Industries (Ningbo) Co., Ltd., Formosa ABS Plastics (Ningbo) Co., Ltd., Formosa PS (Ningbo) Co., Ltd. and Formosa Phenol (Ningbo) Limited Co. After the effective date of January 2, 2018, Formosa Chemicals Industries (Ningbo) Co., Ltd. was the surviving entity.
The proposal had been resolved by Board of Directors on November 4, 2016. (Samoa) Co., Ltd..
Formosa Synthetic Rubber (Ningbo) Co., Ltd. is an investee company in Mainland China through the investee - Formosa Synthetic Rubber (Hong Kong) Co., Ltd..
Formosa Biomedical Trading (Shanghai) Co., Ltd. is an investee company in Mainland China through the investee - Formosa Biomedical (Samoa) Co., Ltd..
Formosa Taffeta (Changshu) Co., Ltd. is an investee company in Mainland China through the subsidiary - Formosa Taffeta (Hong Kong) Co., Ltd..
The Company is the surviving company after the consolidation of Changshu Yu Yuan Development Co., Ltd. and Changshu Fushun Enterprise Management Co., Ltd. It's paid-in capital is RMB$13,592,920.
Note 2: Investment income recognized in current period is based on the financial reports audited by CPAs of the Taiwan parent company.
Note 3: The Company's paid-in capital, accumulative remittance from Taiwan as of January 1, 2024 and December 31, 2024 all amount to US$46,400,000.
(The remittance of US$46,388,800 and the capitalised value of machinery and equipment of US$11,200)
Note 4: The Company's paid-in capital, accumulative remittance from Taiwan as of January 1, 2024 and December 31, 2024 all amount to US$42,000,000. In order to effectively utilise the residential land of the Company, Formosa Chemicals & Fibre Co. split the residential land and established Changshu Fushun Enterprise Management Co., Ltd. by capitalizing the residential land in the first quarter, 2015.
Formosa Chemicals & Fibre Co. reduced the capital of Formosa Taffeta (Changshu) Co., Ltd. by US$900,000, so the Company's paid-in capital amounts to $41,100,000.

Company name	Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2024	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA)	Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA
The Company	$ 38,174,279	$ 46,668,015	Note

Note: Corporations that are qualified with operations headquarters certification issued by the Industrial Development Bureau, Ministry of Economic Affairs, R.O.C.

Formosa Chemicals and Fibre Corporation and subsidiaries

Significant transactions conducted with investees in Mainland China directly or indirectly through other companies in the third areas

For the year ended December 31, 2024

Table 10

Expressed in thousands of NTD

(Except as otherwise indicated)

	Sale (purchase)		Property transaction		Accounts receivable (payable)		Provision of endorsements/guarantees or collaterals		Financing
Investee in Mainland China	Amount	%	Amount	%	Balance at December 31, 2024	%	Balance at December 31, 2024	Purpose	Maximum balance during the year ended December 31, 2024	Balance at December 31, 2024	Interest rate	Interest during the year ended December 31, 2024	Others
Formosa Taffeta (Zhongshan) Co., Ltd.	$ 6,919	0.02	$ -	-	$ 400	0.03	$ 917,980	For short-term loans from financial institutions	$ -	$ -	-	$ -	-
Formosa Taffeta (Changshu) Co., Ltd.	9,232	0.03	8,799	0.99	1,004	0.07	1,803,175	For short-term loans from financial institutions	-	-	-	-	-

Table 10, Page 1

Formosa Chemicals and Fibre Corporation and subsidiaries

Information on Major Shareholders

For the year ended December 31, 2024

Table 11

Name of Major Shareholder	Shares
	Number of Shares	Ownership (%)
Chang Gung Medical Foundation	1,089,142,009	18.58%
Qin's International Investment Holdings Ltd.	371,938,814	6.35%

Table 11, Page 1

AI assistant

FCFC — Audit Report / Information 2024

51780_rns_2024-12-20_77c5e832-f7e1-4054-9d44-02557bbdfbf5.pdf

FORMOSA CHEMICALS & FIBRE CORPORATION AND SUBSIDIARIES

FORMOSA CHEMICALS & FIBRE CORPORATION AND SUBSIDIARIES

Introduction

Basis for opinion

Evaluation of inventories

Description

How our audit addressed the matter

Other matter – Reference to the audits of other auditors

Other matter – Parent company only financial reports

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

Auditors' responsibilities for the audit of the consolidated financial statements

FORMOSA CHEMICALS & FIBRE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2024 AND 2023

FORMOSA CHEMICALS & FIBRE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2024 AND 2023

FORMOSA CHEMICALS & FIBRE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

YEARS ENDED DECEMBER 31, 2024 AND 2023

FORMOSA CHEMICALS & FIBRE CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED DECEMBER 31, 2024 AND 2023

1. History and Organisation

2. The Date of Authorisation for Issuance of the Financial Statements and Procedures for Authorisation

3. Application of New Standards, Amendments and Interpretations

4. Summary of Material Accounting Policies

(1) Compliance statement

Statements of comprehensive income

(4) Foreign currency translation

A. Foreign currency transactions and balances

(6) Inventories

(12) Bonds payable

(17) Retained earnings

(28) Transactions with non-controlling interest

7. Related Party Transactions

(1) Names of related parties and relationship

(2) Significant related party transactions

8. Pledged Assets

9. Significant Contingent Liabilities and Unrecognised Contract Commitments

(5) Contingencies - litigation

12. Others

(1) Capital management

(2) Financial instruments

A. Financial instruments by category

Price risk

Cash flow and fair value interest rate risk

13. Supplementary Disclosures

14. Segment Information

(1) General information

(2) Measurement of segment information

Formosa Chemicals and Fibre Corporation

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

Formosa Chemicals and Fibre Corporation and subsidiaries

Formosa Chemicals and Fibre Corporation and subsidiaries

Formosa Chemicals and Fibre Corporation and subsidiaries

Receivables from related parties reaching $100 million or 20% of paid-in capital or more

Formosa Chemicals and Fibre Corporation and subsidiaries

Information on investments in Mainland China

Formosa Chemicals and Fibre Corporation and subsidiaries

Formosa Chemicals and Fibre Corporation and subsidiaries

Information on Major Shareholders

More from FCFC

FCFC Audit Report / Information 2024