FRG — Audit Report / Information 2024

Nov 13, 2024

Formosan Rubber Group Inc.

Parent Company Only Financial Statements For the Years Ended December 31,2024 and 2023 With Independent Auditor’s Report

Address: 8F, No. 82, Sec. 1, Hankou St., Zhongzheng District, Taipei City

Tel No.: (02) 2370-0988

The auditors’ report and the accompanying parent company only financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language auditors’ report and parent company only financial statements, the Chinese version shall prevail.

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NO.00111130EA

INDEPENDENT AUDITORS’ REPORT

The Board of Directors and Shareholders

Formosan Rubber Group Inc.

Opinion

We have audited the accompanying parent company only financial statements of Formosan Rubber Group Inc., which comprise the parent company only balance sheets as of December 31, 2024 and 2023, and the parent company only statements of comprehensive income, changes in equity, and cash flows for the years then ended, and the notes to the parent company only financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying parent company only financial statements present fairly, in all material respects, the accompanying parent company only financial position of Formosan Rubber Group Inc. as of December 31,2024 and 2023, and its parent company only financial performance and its parent company only cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and the Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statements section of our report. We are independent of Formosan Rubber Group Inc. 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.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the parent company only financial statements for the year ended December 31,2024. These matters were addressed in the context of our audit of the parent company only financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

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Key audit matters for Formosan Rubber Group Inc.’ parent company only financial statements for the year ended December 31, 2024 are stated as follows:

Valuation of Net Realizable Value of Real Estate For Sale

Summary of key issues for auditing

As of December 31, 2024, the value of real estate for sale on the parent company only balance sheet was NT$2,580,665 thousand primarily reflective of the completed properties and land held for sale. These items accounted for approximately 17% of the parent company only total assets. Please refer to Notes 4, 5 and 10 of the parent company only financial statements for detailed information. Formosan Rubber Group Inc. uses the lower of the cost or net realizable value for the valuation of real estate for sale. As the valuation of real estate for sale is subject to the effects of the cycle in the real estate market and the changes of the government policy and the determination of net realizable values for real estate for sale requires major judgment and estimates, it was listed as one of the audit priorities this year.

Audit procedures

The audit procedures were carried out by CPAs as follows:

1. Acquisition of the data concerning the company’s assessment of lower of the costs and net realizable value;

2. Random inspection of the ownership documents for the properties held for sale, in order to validate the integrity of the assessment;

3. Random inspection of the data concerning the estimated selling price and the sale records of the most recent period, so as to determine the basis and reasonability of the management’s estimate of net realizable value.

Impairment of Property Investments

Summary of key issues for auditing

As of December 31, 2024, the value of property investments on the parent company only balance sheet was NT$3,135,611 thousand accounting for approximately 21% of the parent company only total assets. Please refer to Notes 4, 5 and 15 of the parent company only financial statements for detailed information. Management complies with IAS 36 “Impairment of Assets” by evaluating whether there are any signs indicating the investment properties may be impaired on each balance sheet date. Given the numerous assumptions involved, and the high uncertainty of accounting estimates, it was listed as one of the audit priorities this year.

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Audit procedures

The audit procedures were carried out by CPAs as follows:

1. Acquisition of the data concerning the company’s assessment of asset impairments according to cash generating units;

2. Assessment of the reasonability of the management’s identification of impairment signs, assumptions and estimates used, such as the division of cash generating units, forecasting of cash flows, the appropriateness of the discount rate.

Other Matter – Reference to the Audit Report from Other Independent Auditor

The financial statements of Formosan Construction Corp., an investee with investments accounted for using equity method for the year 2024, were audited by another independent auditor. Hereby our opinion on the parent company only financial statements, insofar as it relates to the investments accounted for using equity method and their share of other comprehensive income, is based solely on the audit report of the other auditor.

As of December 31, 2024, the carrying amount of the investments accounted for using equity method in the aforementioned investee was NT$91,332 thousand, constituting 0.6% of the parent company only total assets. The share of other comprehensive income recognized as of December 31, 2024, was NT$13,436 thousand, constituting 1.19% of the total parent company only other comprehensive income.

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

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

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

Those charged with governance (including members of the Audit Committee) are responsible for overseeing Formosan Rubber Group Inc.’ financial reporting process.

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Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statements

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

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

1. Identify and assess the risks of material misstatement of the parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

2. 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 Formosan Rubber Group Inc.’ internal control.

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

4. 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 Formosan Rubber Group Inc.’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause Formosan Rubber Group Inc. to cease to continue as a going concern.

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

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1. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within Formosan Rubber Group Inc. to express an opinion on the parent company only 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.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements for the year ended December 31, 2024 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.

BAKER TILLY CLOCK & CO.

March 11, 2025

Notes to Readers

The accompanying parent company only financial statements are intended only to present the parent company only financial position, financial performance and its cash flows in accordance with the accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to audit such parent company only financial statements are those generally applied in the Republic of China. The auditors’ report and the accompanying parent company only financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language auditors’ report and parent company only financial statements, the Chinese version shall prevail.

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Formosan Rubber Group Inc.

Parent Company Only Balance Sheet

Dec. 31, 2024 and 2023

Unit: In Thousands of NTD

Assets	Note	Dec. 31, 2024	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2023
Accountingitem		Amount	％	Amount	％
Current assets Cash and cash equivalents Financial assets at fair value through profit or loss-current Financial assets at fair value through other comprehensive income - current Notes receivable, net Accounts receivable, net Other receivables Inventories Inventories-Construction Industry Prepayments Other financial assets-current Other current assets-other Total current assets Non-current assets Financial assets at fair value through other comprehensive income - non-current Investments accounted for using equity method Property, plant and equipment Right-of-use assets Investment property, net Deferred tax assets Prepayments for equipment Refundable deposits Other financial assets - non-current Other non-current assets, others Total non-current assets	6 7 8 9 9 10 10 11 8 12 13 14 15 27 11	$ 456,908 19,427 4,603,872 23,825 119,295 38,534 174,732 2,580,665 37,443 743,135 1,005	3 － 31 － 1 － 1 17 － 5 －	$ 563,696 36,959 3,940,521 38,804 100,376 47,969 181,618 2,771,492 54,544 711,296 973	4 － 28 － 1 － 1 20 － 5 －
		8,798,841	58	8,448,248	59
		67,329 2,204,021 725,446 23,387 3,135,611 79,985 6,078 51,970 20,000 211	－ 15 5 － 21 1 － － － －	117,356 1,996,300 747,716 30,989 2,784,666 55,178 18,017 57,050 20,000 633	1 14 5 － 20 － － 1 － －
		6,314,038	42	5,827,905	41
Total assets		$ 15,112,879	100	$ 14,276,153	100

(The attached notes constitute a part of the parent company only financial statements.)

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Formosan Rubber Group Inc.

Parent Company Only Balance Sheet (Continued)

Dec. 31, 2024 and 2023

Unit: In Thousands of NTD

Liabilities & equity	Note	Dec. 31, 2024	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2023
Accountingitem		Amount	％	Amount	％
Current liabilities Short-term borrowings Short-term notes and bills payable Contract liabilities Notes payable Accounts payable Other payables Current tax liabilities Lease liabilities-current Long-term borrowings, current portion Other current liabilities Total current liabilities Non-current liabilities Deferred tax liabilities Non-current lease liabilities Net defined benefit liability Guarantee deposits received Total non-current liabilities Total liabilities Share capital Capital surplus Retained earnings Legal reserve Special reserve Unappropriated retained earnings Other equity interest Exchange differences on translation of foreign financial statements Unrealized gains (losses) on financial assets measured at fair value through other comprehensive income Total equity	16 18 10、21 14 17 27 14 19 20 20 20 20	$ 1,075,000 149,807 6,049 75,506 29,704 121,996 31,319 7,415 198,000 18,537	8 1 － 1 － 1 － － 1 －	$ 1,140,000 189,881 － 81,599 34,185 127,396 32,407 7,648 － 18,073	8 2 － 1 － 1 － － － －
		1,713,333	12	1,631,189	12
		191,905 16,650 1,598 48,438	1 － － －	170,946 24,065 2,131 45,550	1 － － －
		258,591	1	242,692	1
		1,971,924	13	1,873,881	13
		3,035,934 449,745 1,874,381 296,475 6,357,798 54,444 1,072,178	20 3 13 2 42 － 7	3,035,934 449,745 1,812,711 296,475 5,873,998 4,539 928,870	21 3 13 2 41 － 7
		13,140,955	87	12,402,272	87
Total liabilities & equity		$ 15,112,879	100	$ 14,276,153	100

(The attached notes constitute a part of the parent company only financial statements.)

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Formosan Rubber Group Inc.

Parent Company Only Comprehensive Income Statement

From Jan. 1 to Dec. 31, 2024 and 2023

Unit: In Thousands of NTD

Accounting item	Note	2024		2023
		Amount	％	Amount	％
Operating revenue Operating costs Gross profit Operating expenses Selling expenses General and administrative expenses Research and development expenses Total operating expense Operating profit Non-operating income and expenses Interest income Other income Other gains and losses Finance costs Expected credit impairment (loss) gain Shares of profit of subsidiaries and associates Total non-operating income and expenses Income before income tax Income tax expense Net income Other comprehensive income Items that will not be reclassified subsequently to profit or loss Remeasurements of defined benefit plans Unrealized gains on valuation of investments in equity instruments measured at fair value through other comprehensive income Shares of other comprehensive income of subsidiaries and associates Income tax benefit related to items that will not be reclassified subsequently Items that may be reclassified subsequently to profit or loss Exchange differences arising on translation of foreign operations Unrealized loss on valuation of investments in debt instruments measured at fair value through other comprehensive income Income tax related to items that may be reclassified subsequently Other comprehensive income Total comprehensive income for the year Earnings per share (NT dollars) Basic earnings per share Diluted earnings per share	21 22 23 24 25 27 19 27 27 28	$ 1,480,474 (1,004,787)	100 (68)	$ 1,357,421 (935,647)	100 (69)
		475,687	32	421,774	31
		(56,477) (147,280) (9,801)	(4) (10) －	(47,577) (151,524) (9,270)	(3) (11) (1)
		(213,558)	(14)	(208,371)	(15)
		262,129	18	213,403	16
		49,064 166,719 155,832 (20,156) (1) 30,273	3 11 11 (1) － 2	53,560 282,461 22,872 (26,326) 284 43,147	4 21 2 (2) － 3
		381,731	26	375,998	28
		643,860 (70,400)	44 (5)	589,401 (70,524)	44 (6)
		573,460	39	518,877	38
		420 428,467 60,576 22,686 62,381 (2,699) (11,936)	－ 29 4 2 4 － (1)	341 658,077 81,566 18,799 6,970 (1,793) (1,033)	－ 48 6 1 1 － －
		559,895	38	762,927	56
		$ 1,133,355	77	$ 1,281,804	94
		1.89 (NT dollars) 1.89 (NT dollars)		1.61 (NT dollars) 1.60 (NT dollars)

(The attached notes constitute a part of the parent company only financial statements.)

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Formosan Rubber Group Inc.

Parent Company Only Statement of Changes in Equity

From Jan. 1 to Dec. 31, 2024 and 2023

Unit: In Thousands of NTD

Item	Share capital	Capital surplus		Retained earnings		Other equityinterest	Other equityinterest	Total equity
			Legal reserve	Special reserve	Clnappropriated undistributed retained earnings	Exchange differences on translation of foreign financial statements	Unrealized gains (losses) on financial assets measured at fair value through other comprehensive income
Balance of Jan. 1,2023	$ 3,373,260	$ 449,745	$ 1,745,695	$ 296,475	$ 5,729,100	$ (1,037)	$ 269,347	$ 11,862,585
Legal reserve appropriated Cash dividend Net income in 2023 Other comprehensive income for 2023, net of income tax Total comprehensive income (loss) in 2023 Capital Reduction Disposal of financial assets at fair value through other comprehensive income - equityinstruments	－ － － －	－ － － －	67,016 － － －	－ － － －	(67,016) (404,791) 518,877 273	－ － － 5,576	－ － － 757,078	－ (404,791) 518,877 762,927
	－	－	－	－	519,150	5,576	757,078	1,281,804
	(337,326) －	－ －	－ －	－ －	－ 97,555	－ －	－ (97,555)	(337,326) －
Balance of Dec. 31,2023	3,035,934	449,745	1,812,711	296,475	5,873,998	4,539	928,870	12,402,272
Legal reserve appropriated Cash dividend Net income in 2024 Other comprehensive income for 2024, net of income tax Total comprehensive income (loss) in 2024 Disposal of financial assets at fair value through other comprehensive income - equityinstruments	－ － － －	－ － － －	61,670 － － －	－ － － －	(61,670) (394,672) 573,460 336	－ － － 49,905	－ － － 509,654	－ (394,672) 573,460 559,895
	－	－	－	－	573,796	49,905	509,654	1,133,355
	－	－	－	－	366,346	－	(366,346)	－
Balance of Dec. 31,2024	$ 3,035,934	$ 449,745	$ 1,874,381	$ 296,475	$ 6,357,798	$ 54,444	$ 1,072,178	$ 13,140,955

Note: For the years ended December 31, 2024 and 2023, the Company recognized the employees compensation of $6,571 thousand and $6,014 thousand rsepectively, and the

directors remuneration of $6,571 thousand and $6,014 thousand respectively, amounts recognised The amounts loss in the statement of comprehensive income .

(The attached notes constitute a part of the parent company only financial statements.)

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Formosan Rubber Group Inc.

Parent Company Only Statement of Cash Flows

From Jan. 1 to Dec. 31, 2024 and 2023

Unit: In Thousands of NTD

	Unit:	In Thousands of NTD
Item	2024	2023
	Amount	Amount
Cash flows from operating activities: Income before income tax Adjustments for: Depreciation expense Expected credit impairment loss (gain) Net gain on financial assets at fair value through profit or loss Finance costs Interest income Dividend income Share of profit of subsidiaries and associates Loss on disposal of property, plant and equipment Other losses Impairment loss on non-financial assets Unrealized foreign exchange gain Changes in operating assets and liabilities Notes receivable Accounts receivable Other receivables Inventories Inventories-Construction Industry Prepayments Other current assets Contract liabilities Notes payable Accounts payable Other payables Other current liabilities Net defined benefit liability Cash generated from operations	$ 643,860 103,330 429 (103,903) 20,156 (49,064) (160,311) (30,273) 20,572 17,631 7,654 (4,111) 15,130 (19,498) 9,182 6,886 190,827 17,101 (32) 6,049 (6,093) (4,481) (5,400) 464 (113)	$ 589,401 101,316 (284) (20,635) 26,326 (53,560) (277,070) (43,147) － － － (98) 36,298 (19,999) (9,374) 29,056 137,859 (2,212) 114 － (10,533) 275 (8,949) (307) (103)
	675,992	474,374

(Continued)

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Formosan Rubber Group Inc.

Parent Company Only Statement of Cash Flows (Continued)

From Jan. 1 to Dec. 31, 2024 and 2023

Unit: In Thousands of NTD

Item	2024	2023
	Amount	Amount
Interest received Dividends received Interest paid Income tax paid Net cash generated from operating activities Cash flows from investing activities: Cash paid for acquisition of financial assets at fair value through other comprehensive income Proceeds from financial assets at fair value through other comprehensive income Return of capital from financial assets at fair value through other comprehensive income Cash paid for acquisition of financial assets at fair value through profit or loss Proceeds from financial assets at fair value through profit or loss Acquisition of investments accounted for using equity method Acquisition of property, plant and equipment Decrease (increase) in refundable deposits Acquisition of Investment property Increase in other financial assets Decrease in other non-current assets Decrease (increase) prepayments for equipment Net cash used in investing activities Cash flows from financing activities: Decrease in short-term borrowings (Decrease) increase in short-term notes and bills payable Increase in long-term borrowings Increase (decrease) in guarantee deposits received Payments of lease liabilities Cash dividends paid Capital Reduction Net cash used in financing activities Net Decrease in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end ofyear	49,574 160,054 (20,156) (64,586)	54,147 277,064 (26,326) (116,910)
	800,878	662,349
	(1,383,300) 1,198,954 900 (846,549) 967,984 (54,491) (40,940) 5,080 (429,320) (31,839) 422 11,939	(567,769) 749,077 4,000 (38,042) 38,681 (378,022) (19,207) (16,674) (215,354) (711,296) 671 (18,017)
	(601,160)	(1,171,952)
	(65,000) (40,074) 198,000 2,888 (7,648) (394,672) －	(100,000) 149,987 － (2,983) (6,992) (404,791) (337,326)
	(306,506)	(702,105)
	(106,788) 563,696	(1,211,708) 1,775,404
	$ 456,908	$ 563,696

(The attached notes constitute a part of the parent company only financial statements.)

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Formosan Rubber Group Inc.

Notes to Parent Company Only Financial Statements

From Jan. 1 to Dec. 31, 2024 and 2023

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

1. Company profile

Formosan Rubber Group Inc. (hereafter referred to as the “Company”) was founded in 1963 under the Company Act of the Republic of China. The company produces and markets rubber sheets, plastic sheets, plastic foam sheets and PVC resin sheets, as well as the relevant materials. In order to diversity its operations, the Company started in September 1995 the property development business and the leasing, sale and management operations for its own properties and land. the Company became a listed company on the Taiwan Stock Exchange in March 1992.

The parent company only financial statements has the New Taiwan dollars as the Company’s functional currency.

2. Date and procedure approving financial statements

The parent company only financial statements were approved and published by the board of directors on March 11, 2025.

3. Application of new, amended and revised standards and interpretations

• (1) Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the “IFRS Accounting Standards”) endorsed and issued into effect by the Financial Supervisory Commission (FSC)

The initial application of the IFRS Accounting Standards endorsed and issued into effect by the FSC did not have material impact on the Corporation’s accounting policies.

• (2) The IFRS Accounting Standards endorsed by the FSC for application starting from 2025

Effective date announced by New, amended and revised standards and interpretations IASB

Amendments to IAS 21 “Lack of Exchangeability” January 1, 2025 (Note 1)

• Note 1: An entity shall apply those amendments for annual reporting periods beginning on or after January 1, 2025. Upon initial application of the amendments to IAS 21, the Corporation shall not restate the comparative information and shall recognize any effect of initially applying the amendments as an adjustment to the opening balance of retained earnings or, if applicable, to the cumulative amount of translation differences in equity as well as affected assets or liabilities.

The Company has assessed that the application of above standards and interpretations will

not have a material impart on the Company’s financial position and financial performance.

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• (3) The IFRS Accounting Standards in issue but not yet endorsed and issued into effect by the

FSC

FSC
New,Amended and Revised Standards and Interpretations	Effective Date Announced byIASB(Note 1)
Annual Improvements to IFRS Accounting Standards - Volume 11 Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity” Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture” IFRS 17 “Insurance Contracts” Amendments to IFRS 17 Amendments to IFRS 17 “Initial Application of IFRS 17 and IFRS 9 - Comparative Information” IFRS 18 “Presentation and Disclosure in Financial Statements” IFRS 19 “Subsidiaries without Public Accountability: Disclosures”	January 1, 2026 January 1, 2026 January 1, 2026 To be determined by IASB January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2027 January 1, 2027

• Note 1: Unless stated otherwise, the above IFRS Accounting Standards are effective for annual reporting periods beginning on or after their respective effective dates.

IFRS 18 “Presentation and Disclosure in Financial Statements”

IFRS 18 will supersede IAS 1 “Presentation of Financial Statements”. The main changes comprise:

• ⚫ Items of income and expenses included in the statement of profit or loss shall be classified into the operating, investing, financing, income taxes, and discontinued operations categories.

• ⚫ The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing and income taxes, and profit or loss.

• ⚫ Provides guidance to enhance the requirements of aggregation and disaggregation: The Corporation shall identify the assets, liabilities, equity, income, expenses, and cash flows that arise from individual transactions or other events and shall classify and aggregate them into groups based on shared characteristics, so as to result in the presentation in the primary financial statements of line items that have at least one similar characteristic. The Corporation shall disaggregate items with dissimilar characteristics in the primary financial statements and in the notes. The Corporation labels items as “other” only if it cannot find a more informative label.

• ⚫ Disclosures on Management-defined Performance Measures (MPMs): When in public communications outside financial statements and communicating to users of financial statements management’s view of an aspect of the financial performance of the Corporation as a whole, the Corporation shall disclose related information about its MPMs in a single note to the financial statements, including the description of such measures, calculations, reconciliations to the subtotal or total specified by IFRS Accounting Standards, and the income tax and non-controlling interests effects of related reconciliation items.

Except for the above impact, as of the date the parent company only financial statements

were authorized for issue, the Corporation is continuously assessing the other impacts of the above amended standards and interpretations on the Corporation’ s financial position and financial performance and will disclose the relevant impact when the assessment is completed.

4. Summary of significant accounting policies

• (1) Compliance statement

This is the Company’s first set of parent company only financial statements prepared according to the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

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(2) Preparation bases

Other than the financial assets measured at the fair value and the pension liability recognized with the net value (assets less the present value of the liabilities due to defined benefits), the parent company only financial statements are based on historical costs, usually the fair value paid for the acquisition of assets.

The subsidiaries, associates are incorporated in the parent company only financial statements under the equity method. To make net profit for the year, other comprehensive income and equity in the parent company only financial statements equal to those attributed to owners of the Company on parent company only financial statements, the effect of the differences between basis of parent company only and basis of consolidation are adjusted in the investments accounted for using equity method, the related share of the profit or loss, the related share of other comprehensive income of subsidiaries and associates and related equity.

(3) Foreign Currency

The individual financial statements for the parent company only entities are prepared and presented in the functional currency for these entities (i.e. the currency used in the economy they operate in). The functional currency and the presentation currency of the Company’s Parent company only financial statements is NT Dollars. All the financial performances and statuses are converted into the NT dollars for the preparation of the parent company only financial statements.

Any transactions not in the functional currency shall be converted and recognized according to the exchange rate on the transaction dates in the preparation of the individual financial statements for the parent company only entities. The monetary items in foreign currencies shall be recalculated according to the spot exchange rate on the end-of-the-period date. Any difference resultant from exchange rates shall be recognized as profits or losses during the period. The non-monetary items in foreign currencies measured with the fair value shall be recalculated according to the exchange rate on the date of fair value determination. Any different resultant from exchange rates shall be recognized as profits or losses during the period. However, any difference as a result of changes in the fair value shall be recognized as other comprehensive incomes or losses. The non-monetary items in foreign currencies measured by historical costs shall not be recalculated.

For the purpose of presenting parent company only financial statements, the functional currencies of the group entities are translated into the presentation currency, the New Taiwan dollar, as follows: Assets and liabilities are translated at the exchange rates prevailing at the end of the reporting period; and income and expense items are translated at the average exchange rates for the period. The resulting currency translation differences are recognized in other comprehensive income.

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On the disposal of a foreign operation, all of the exchange differences accumulated in equity in respect of that operation attributable to the owners of the Corporation are reclassified to profit or loss.

In relation to a partial disposal of a subsidiary that does not result in the Corporation losing control over the subsidiary, the proportionate share of accumulated exchange differences is re-attributed to non-controlling interests of the subsidiary and is not recognized in profit or loss. For all other partial disposals, the proportionate share of the accumulated exchange differences recognized in other comprehensive income is reclassified to profit or loss.

• (4) Standards to classify current and non-current assets and liabilities

The basis for current and non-current assets and liabilities for the real estate development business is based on the operating cycle. All the other items following the principles below: Current assets are the assets held for trading purposes or expected to be realized or exhausted within one year. Any assets not classified as current are non-current assets. Current liabilities are the liabilities held for trading purposes or expected to be repaid within one year. Any liabilities not classified as current are non-current liabilities.

• (5) Cash equivalents

Cash equivalents can be converted into a fixed amount of cash at any time. They are short-term, highly liquid investments with minimum changes in value.

Bank overdrafts, a credit facility that can be immediately repaid, are part of the Company’s cash management. They are reported under cash and cash equivalents in the statement of cash flows, and as an item in short term loans in current liabilities on the balance sheet.

• (6) Inventory and real estate for sale and real estate under construction

• Inventories include raw materials, supplies, finished goods and work-in-process. Inventories are measured at the lower of cost or net realizable value. Comparisons between cost and net realizable value are made on an item-by-item basis, except for inventories of the same type. Net realizable value is the estimated selling price under normal circumstances, less estimated costs to complete and estimated costs to sell. The cost of inventories is calculated using the weighted-average method.

If a house is exchanged for land under a subdivision contract and is classified as land for sale, no gain or loss is recognized on the exchange and revenue is not recognized until the land is sold to the buyer.

• (7) Investments accounted for under equity method

Investments accounted for using the equity method is investments in subsidiaries and associates.

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A. A subsidiary

A subsidiary is an entity that is controlled by the Company.

Under the equity method, an investment in a subsidiary is initially recognized at cost and adjusted thereafter to recognize the Company’s share of profit or loss and other comprehensive income of the subsidiary as well as the distribution received. The Company also recognized its share in the changes in the equity of subsidiaries.

Changes in the Company’s ownership interests in subsidiaries that do not result in the Company losing control over the subsidiaries are accounted for as equity transactions. Any difference between the carrying amount of the subsidiary and the fair value of the consideration paid or received is recognized directly in equity.

The acquisition cost exceeding the amount of the share of the fair value of the subsidiary’s recognizable assets and liabilities received by the Company on its acquisition day is listed as goodwill. Such goodwill includes the investment’s book value which cannot be amortized. The amount exceeding the share of the fair value of the subsidiary’s recognizable assets and liabilities received by the Company on its acquisition day is listed as the current income.

When losing the control of its subsidiary, the Company measures its residual investment in the aforesaid subsidiary according to the fair value at the day that the Company loses its control of the subsidiary. The difference between the residual investment’s fair value as well as any disposal amount and the investment book value at the day that the Company loses its control is listed as the current profit or loss. In addition, the accounting treatment of all the amounts related to the subsidiary in question and recognized in the comprehensive income is same as the basis required to be complied with in the Company’s direct handling of related assets or liabilities.

When the Company transacts with its subsidiaries, profits and losses resulting from the transactions with the subsidiaries are recognized in the Company’s parent company only financial statements only to the extent of interests in the subsidiaries that are not owned by the Company.

• B. Investments in associates are reported.

Associates are the companies over which the Company has significant influence. Associates are not entitles of subsidiaries.

The investment in associates shall be recognized as costs under the equity method. After the asset acquisition, the book value shall change in line with the Company’s share of profits and losses, other comprehensive income and profit distributions. Meanwhile, the recognized equity value of the associates also changes in line with any increase or decrease in the Company’s shares.

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If the Company does not subscribe to the new shares of associates on a pro-rata basis according to existing holdings, and any increase or decrease is incurred to the percentage of the Company’s holdings and hence net equity value of the investment, the adjustment shall be reflected with the change in capital surplus and according to the equity method. If the Company has not subscribed or acquired to new shares on a pro-rata basis and seen a reduction in its stake in the associates, the amounts recognized in other comprehensive income and the reclassification as a result of the values for the associates concerned should have the same basis for accounting treatment as if the assets or the liabilities of the associates were directly disposed. Any debit should be made from the capital surplus. However, if the capital surplus is insufficient for debits incurred by investments under the equity method, the debit may be drawn from retained earnings.

The residual investment of the previous associates should be measured with the fair value on the date of loss of significant influence. The delta between the sum of the fair value of the residual investment and the disposal amounts and the book value of the investment on the date of loss of significant control shall be recognized in the income statement during the period. Meanwhile, the values recognized in relation to the associates concerned in other comprehensive income shall have the same accounting basis as if the assets or the liabilities of the associates were directly disposed.

Only the profits and losses resultant from upstream, downstream and lateral transactions with associates not relevant to the Company’s stake in the associates can be recognized in the parent company only financial statements.

• (8) Property, plant and equipment

The property, plant and equipment are listed in accordance with cost less depreciation and accumulated impairment. Cost shall include the incremental cost able to be directly attributed to acquisition or asset implementation.

Straight-line method is applied to depreciation, by indicating the amount of an asset within the durable service life offset its cost and less its residual value. All the major components of the non-current assets shall be depreciated on a standalone basis. Depreciation is accrued in accordance with the following durable service years: building, 3-55 years; machinery equipment, 3-24 years; transportation and other equipments, 3-10 years.

Estimated durable service life, residual value and depreciation method shall be reviewed at the end of the reporting period; prospective application shall be made for any impact on estimation change.

The profit or loss incurred during disposition or obsolescence of property, plant and equipment shall be recognized in the income statement with the differential amount between the disposition price and asset book account.

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(9) Investment property

Only if investment properties is attempted for earning rental or capital appreciation or both may it be classified as the investment properties. The investment properties shall be measured according to its original cost, including related transaction cost, and related interest capitalization shall be made during the construction period. Cost model shall be applied to follow-up measurement, to be measured by cost less the amounts of accumulated depreciation and accumulated impairment.

In case straight-line method is applied to depreciation and building depreciation accrued by 3-50 years.

Estimated durable service life, residual value and depreciation method shall be reviewed at the end of the reporting period; prospective application shall be made for any impact on estimation change.

The profit or loss incurred during disposition or obsolescence of property, plant and equipment shall be recognized in the income statement with the differential amount between the disposition price and asset book account.

(10) Lease

A. The Company as lessor

Leases are classified as finance leases whenever the terms of a lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Lease payments (less any lease incentives payable) from operating leases are recognized as income on a straight-line basis over the terms of the relevant leases. Initial direct costs incurred in obtaining operating leases are added to the carrying amounts of the underlying assets and recognized as expenses on a straight-line basis over the lease terms.

When a lease includes both land and building elements, the Company assesses the classification of each element separately as a finance or an operating lease based on the assessment as to whether substantially all the risks and rewards incidental to ownership of each element have been transferred to the Company. The lease payments are allocated between the land and the building elements in proportion to the relative fair values of the leasehold interests in the land element and building element of the lease at the inception of a contract. If the allocation of the lease payments can be made reliably, each element is accounted for separately in accordance with its lease classification. When the lease payments cannot be allocated reliably between the land and building elements, the entire lease is generally classified as a finance lease unless it is clear that both elements are operating leases; in which case, the entire lease is classified as an operating lease.

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B. The Company as lessee

The Company recognizes right-of-use assets and lease liabilities for all leases at the commencement date of a lease, except for short-term leases and low-value asset leases accounted for applying a recognition exemption where lease payments are recognized as expenses on a straight-line basis over the lease terms.

Right-of-use assets are initially measured at cost, which comprises the initial measurement of lease liabilities adjusted for lease payments made at or before the commencement date. Right-of-use assets are subsequently measured at cost less accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are presented on a separate line in the parent company only balance sheets.

Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms.

Lease liabilities are initially measured at the present value of the lease payments, which comprise fixed payments and variable lease payments which depend on an index or a rate. The lease payments are discounted using the interest rate implicit in a lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses the lessee’s incremental borrowing rate.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in future lease payments resulting from a change in an index or a rate used to determine those payments, the Company remeasures the lease liabilities with a corresponding adjustment to the right-of-use assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. Lease liabilities are presented on a separate line in the parent company only balance sheets.

(11) Impairment of non-financial assets

The Company shall review the book amounts of tangible assets and intangible financial assets at the end of the reporting period to decide whether there is any impairment with such assets. In case it shows any impairment situation, the estimated recoverable amount of assets shall decide the recognized loss amount. In case there is no way of estimating the recoverable amount of an individual asset, the Company shall estimate the recoverable amount of the cash-generating unit of the said asset. In case it can be amortized according to a reasonable and conforming basis, shared assets shall also be amortized to an individual cash product sector. Otherwise it shall be amortized to the minimal cash-generating unit group according to a reasonable and conforming basis.

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The recoverable amount shall be fair value less sales cost and its use value whichever is higher.

In case the recoverable amount of an asset or cash-generating unit is anticipated to be lower than the book amount, the book amount of the said asset or cash-generating unit shall be adjusted and decreased to its recoverable amount; any impairment loss shall be immediately recognized to the current profit and loss.

When any impairment loss reverses in a subsequent period, the book amount of asset or cash-generating unit shall be adjusted and increased to the estimated recoverable amount after revision, provided the book amount after increase shall be limited to the reasonable book amount under the situation when the said asset or cash-generating unit did not recognize an impairment loss in the past years (except for goodwill). The reversed impairment loss shall be immediately recognized to the current profit and loss.

(12) Employee benefits cost

The short-term employee benefits obligation is measured with the basis without discount, and shall be recognized as expenses when providing the related service. Concerning the anticipated payable amount concerning short-term cash bonus or a bonus sharing plan, if it is a current legal or prescribed obligation to be borne by a company due to the past service provided by employees, and the said obligation can be estimated in a reliable manner, such amount shall be listed as liability.

When an expense belongs to defined contribution plans, during the service period provided by employees, it is required to recognize the pension amount contributable as the current expense.

The cost of defined benefits (including service costs, net interests and re-measurements) shall be calculated according to the projected unit credit method. Service costs and net interests of the defined benefits liabilities shall be recognized as employee benefits expenses when incurred, or when the defined benefit plans is modified, shortened or repaid. The re-measurement shall be recognized as other comprehensive income and the retained earnings. There is not reclassification into profits and losses during subsequent periods.

Net defined benefit liabilities refer to the shortfall appropriation of the defined benefit retirement plan, whereas net defined benefit assets shall not exceed the plan’s refunded amount or may reduce the present value of the future appropriation amount.

(13) Financial Instrument

Financial assets and financial liabilities shall be recognized when the Company becomes a party of the said financial instrument clause.

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Upon the original recognition of financial assets and financial liabilities, they shall be measured according to fair values. Upon the original recognition, concerning the acquired or distributed transaction cost directly attributable to financial assets and financial liabilities (except for the financial assets and financial liabilities classified as measurement according to fair value of profit and loss), it shall be increased or decreased from the fair values of the said financial assets or financial liabilities. The transaction costs of financial assets and financial liabilities directly attributable to the ones measured according to fair values through profit and loss shall be immediately recognized as profit and loss.

• (14) Financial assets

The convention trading of financial assets is recognized and removed by trading day accounting.

• A. Type of measurement

Financial assets are classified into the following categories: financial assets at FVTPL, financial assets at amortized cost, investment in debt instruments measured at FVTOCI, and investments in equity instruments at FVTOCI.

• a. Financial asset at FVTPL

Financial assets measured at fair value through profit or loss are financial assets mandatorily measured at fair value through profit or loss and financial assets at fair value through profit or loss, designated as upon initial recognition. Financial assets mandatorily measured at fair value through profit or loss include investments in equity instruments that are not designated by the Company to be measured at fair value through other comprehensive income and investments in debt instruments that fail to meet the criteria as to be measured at amortized cost or at fair value through other comprehensive income.

Financial assets measured at fair value through profit or loss are measured at fair value. The dividends and interests generated are recognized in other income and interest income, respectively, and any gain or loss arising from remeasurement is recognized in other gains and losses.

• b. Measured at amortized cost

When a company after merger simultaneously meets the following two conditions in its investment in financial assets, the financial assets are classified as the ones carried at cost after amortization:

• A) The financial assets are held under a specific operation mode, in which the purpose of the mode is to hold the financial assets in order to collect contract cash flows.

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• B) The cash flow generated on a specific date due to contract clauses is completely for the payment of the principal and the interest accrued from the outstanding principal amount.

Subsequent to initial recognition, financial assets measured at amortized cost are measured at amortized cost, which equals to carrying amount determined by the effective interest method less any impairment loss. Foreign exchange gains and losses are recognized in profit or loss.

Except for the two conditions below, the interest income is calculated by multiplying the effective interest rate by the total book value of the financial assets:

• A) The interest income of the purchased or originated credit-impaired financial assets is calculated by multiplying the credit-adjusted effective interest rate by the cost of amortized financial assets.

• B) The interest income of the financial assets which are not purchased or originated credit-impairment but subsequently become credit-impaired financial assets is calculated by multiplying the effective interest rate by the cost of amortized financial assets.

• c. Investment in debt instruments measured at FVTOCI

Debt instruments that meet the following two conditions are classified as financial assets at fair value through other comprehensive income:

• A) The debt instruments are held within a business model whose objective is to collect the contractual cash flows and to sell the financial assets; and

• B) The contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Investments in debt instruments at fair value through other comprehensive income are measured at fair value. Changes in the carrying amount of investments in debt instruments at fair value through other comprehensive income, such as interest revenue calculated using the effective interest method, gain (loss) on foreign exchange and impairment loss or gain on reversal, are recognized in profit or loss. Other changes in the carrying amount of such instruments are recognized in other comprehensive income and will be reclassified to profit or loss when such instruments are disposed of.

• d. Investments in equity instruments at FVTOCI

On initial recognition, the Company may make an irrevocable election to

designate investments in equity instruments as at FVTOCI. Designation at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent considerate on recognized by an acquirer in a business combination.

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Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in other equity. The cumulative gain or loss will not be reclassified to profit or loss on disposal of the equity investments, instead, they will be transferred to retained earnings.

Dividends on these investments in equity instruments at FVTOCI are recognized in profit or loss when the Company’s right to receive the dividends is established, unless the dividends clearly represent a recovery of part of the cost of the investment.

B. Impairment of financial assets

At the end of each reporting period, a loss allowance for expected credit loss is recognized for financial assets at amortized cost (including accounts receivable) investments in debt instruments at fair value through other

comprehensive income, lease payments receivable due, and contract assets based on their expected credit losses on each balance sheet date.

The loss allowance for accounts receivable and lease payments receivable due is measured at an amount equal to lifetime expected credit losses. For financial assets at amortized cost, when the credit risk on the financial instrument has not increased significantly since initial recognition, a loss allowance is recognized at an amount equal to expected credit loss resulting from possible default events of a financial instrument within 12 months after the reporting date. If, on the other hand, there has been a significant increase in credit risk since initial recognition, a loss allowance is recognized at an amount equal to expected credit loss resulting from all possible default events over the expected life of a financial instrument.

The expected credit loss is calculated according to the average weighted credit loss in which the risk rated ratio of default occurrence is used in calculation. The 12-month expected credit loss represents the credit loss expected to occur to the financial instruments within 12 months after their reporting day due to possible default. The expected credit loss in the duration period refers to the credit loss expected to occur to the financial instruments in the expected duration period due to possible default.

The Company recognizes an impairment loss in profit or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account, except for investments in debt instruments that are measured at fair value through other comprehensive income, for which the loss allowance is recognized in other comprehensive income and does not reduce the carrying amount of the financial assets.

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(15) Income recognition

After identifying the performance obligations of contracts with the customers, the Company allocates the transaction price to the performance obligations and recognizes revenue when performance obligations are met.

(16) Borrowing costs

The cost of borrowing for the funds directly used to acquire, construct or produce the assets (which will reach the status ready for use or available for sale after a long period of time) can be treated as part of the asset costs, until the completion of almost all the necessary activities to get the assets ready for use or available for sale.

Other than the above, all the borrowing costs shall be recognized in the income statement during the current period.

• (17) Income tax

Income tax expenses include income taxes during the period and deferred income taxes, and should be recognized as income taxes in the profit and loss income, except for the income taxes during the period and deferred income taxes recognized as other comprehensive incomes or directly as an equity item.

A. Current tax

The current income tax is based on the taxed income of the said year. Since partial income and expense is taxable item or deductible of other years, or not attributing to taxable or deductible item in accordance with related tax laws, it causes the taxable income to differ from the reported net profit in the parent company only income statement. The related liabilities of the current income tax are calculated by the legislated or substantially legislated tax rate at the end of the reporting period. It is estimated by the income tax of the previous year, serving as the adjustment of the current income tax.

According to the provisions of Income Tax Law, The unallocated earnings of the Company adding profit-seeking enterprise income tax shall be recognized as the current expense in the allocated earning year resolved in the shareholders’ meeting

• B. Deferred tax

Deferred income tax is recognized by the temporary differential calculation generated from the taxation basis of book amounts of the recorded assets and liabilities and income through taxation calculation. Deferred income tax liabilities in general are recognized by the temporary differences of all future taxes payable. Deferred income tax assets are recognized by all likely future taxes less the deductible temporary difference in use.

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Deferred income tax assets and deferred income tax liabilities may only be mutually offset when concurrently conforming to the following conditions: (1) a company has legal execution right to mutually offset the current income tax assets and income tax liabilities; and (2) deferred income tax assets and deferred income tax liabilities are levied by the same taxation authority towards the same tax payment major entity, or levied towards different tax payment corporate entities, yet each major entity attempts to, at each future period of the deferred income tax liabilities or assets pay-off or recovery of the major amount, pay off the current income tax liabilities and assets on net-amount basis, or concurrently realize assets and pay off liabilities.

The temporary differences in tax payables related to invested subsidiary company and associates are all recognized as deferred income tax liabilities, provided if the Company can control the time point of temporary difference reverse, and the said temporary differences may very likely not be reversed in the foreseeable future are excluded. The deferred income tax assets generated from the related deductible temporary differences to this kind of investment and equity can only be recognized in the gains very likely with sufficient taxable income used to realize the temporary differences, and be within the scope of reverse within the anticipated future.

The book amounts of deferred income tax assets shall be reviewed at the end of the reporting period, and adjust and decrease the book amounts for all or partial assets without sufficiently taxable income to serve it to recover. Concerning the ones originally not recognized deferred income tax assets, they shall also be reviewed at the end of the reporting period, and adjust and increase the book amounts for all or partial assets very likely to generate taxable income to serve it to recover.

The deferred income tax assets and liabilities are measured by expected liabilities pay-off or assets in realizing the current tax rate, while the said tax rate shall be based on the legislated or already substantially legislated tax rate at the end of the reporting period. The measurement of deferred income tax liabilities and assets shall reflect the tax consequences of a company generated in expected recovery or pay-off of the book amounts of its assets and liabilities at the end of the reporting period.

(18) Treasury stocks

The recovered issued stock shall be recognized as treasury stocks I accordance with the paid cost upon buy-back. In case the disposition price in disposing treasury stocks is higher than the book value, its difference shall be listed as capital surplus – treasury stocks trade; in case the disposition price in disposing treasury stocks is lower than the book value, its difference shall be offset the capital surplus generated from the trade of the treasury stocks of the same category of treasury stocks; in case of any deficit, it shall be debited to keep the surplus. Weighted average shall be applied to the book value of treasury stocks and be separately calculated in accordance with the recovery reasons.

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Upon cancellation of treasury stocks, it shall be debited to keep the capital surplus – stock issue premium and share capital; in case its book value is higher than the total sum of par value and stock issue premium, its difference shall offset the capital surplus generated from the trade of the treasury stocks of the same category of treasury stocks; in case of any deficit, it shall be debited to offset retained earnings; in case the book value of treasury stocks is lower than the total amount of par value and stock issue premium, it shall be credited as the capital surplus generated from the trade of the treasury stocks of the same category of treasury stocks.

5. Citical Accounting Judgements, And Key Sources Of Estimation And Uncertainty

The Company upon applying the accounting policy stated in Note 4 provides related judgments, estimations and assumptions for the information acquired from other resources which are based on historical experience and other factors deemed crucial. The actual result may differ from what is estimated.

The Company shall be continuously reviewing estimations and basic assumptions. In case the revision of estimations would influence the current period, then the current recognition shall be revised in accounting estimations. In case the revision of accounting estimations would concurrently influence the current period and future period, then the estimations revision shall be recognized in both the current period and future period.

The following shows the information related to major assumptions made in the future, and other major sources of uncertainty at the end of the financial reporting period; the said assumptions and estimations have risks of causing book amounts of assets and liabilities to incur major adjustments in the following fiscal year.

(1) Evaluation of inventory and real estate for sale

Since inventory and real estate for sale shall be priced by cost and net cash realizable value whichever is lower, therefore the Company shall use judgments and estimations to determine the net cash realizable value at the end of the financial reporting period.

Since industry rapidly changes, the inventory and real estate for sale of the Company at the end of the financial reporting period due to the amounts of normal wear and tear, obsolescence, or without market selling price, offsets its cost to decrease to its net cash realizable value. The evaluation of this inventory and real estate for sale mainly based on the product demand in the future specific period as estimation basis; therefore, it may generate major changes.

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• (2) Impairment evaluation of tangible assets and intangible assets (except for goodwill) During the asset impairment evaluation process, the Company shall rely on subjective judgments and, with basis on asset use mode and rubber, real estate industry characteristics, determine parent company only cash flow asset durable years and future likely generated revenues and expenses of specific asset groups; any change in estimations from changes in economic status or corporate policies may likely cause major impairment in the future.

6. Cash and cash equivalents

7. 8.	Dec. 31, 2024 Cash and petty cash $ 522 Cash in bank 293,855 Cash equivalent Commercial paper 162,531 Total $ 456,908 Financial assets at fair value through profit or loss-current Dec. 31, 2024 Current financial assets at fair value through profit or loss, designated as upon initial recognition Fund $ 19,427 Financial assets at fair value through other comprehensive income Dec. 31, 2024 Equity instruments Stock of domestic listed (OTC) companies $ 4,248,998 Stock of foreign listed (OTC) companies 295,111 Stock not classified to listed (OTC) and emerging companies 67,329 Debt instruments Financial bond 59,763 Total $ 4,671,201 Current $ 4,603,872 Non-current $ 67,329	Dec. 31, 2023
		$ 445 253,402 309,849
		$ 563,696
		Dec. 31, 2023
		$ 36,959
		Dec. 31, 2023
	Equity instruments Stock of domestic listed (OTC) companies Stock of foreign listed (OTC) companies Stock not classified to listed (OTC) and emerging companies Debt instruments Financial bond Total Current Non-current
		$ 3,835,823 46,346 117,356 58,352
		$ 4,057,877
		$ 3,940,521
		$ 117,356

(1) The Company signed a securities lending agreement with SinoPac Securities Corporation on April 10, 2020. Dividends and bonuses, being generated during the loan period should be repaid to the company. According to the agreement, when there is no loan transaction for more than three consecutive years, the agreement would be terminated. As of December 31, 2024 and 2023, the book value of stock lending were NT$0 thousand and NT$83,722 thousand respectively.

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• (2) Credit risk management for investments in debt instruments

Investments in debt instruments were classified as at FVTOCI ：

Gross carrying amount Adjustment to fair value Total	Dec. 31, 2024 $ 64,996 (5,233) $ 59,763	Dec. 31, 2023
		$ 60,885 (2,533)
		$ 58,352

The Company only invests in debt instruments that have low credit risk for the purpose of impairment assessment. The Company continuously tracks information to monitor changes in the credit risk of the debt instruments that it invests in, and also reviews other information such as material information about the debtor to assess whether there is a significant increase in credit risk since the investment was recognized.

The Company considers the historical default rates of each credit rating supplied by external rating agencies to estimate 12-month or lifetime expected credit losses.

The book amounts of investments in each credit level debt instrument and the applicable expected credit loss rates are as follows:

Dec. 31, 2024

Credit Rating Performing	Expected credit loss rate 0％～0.09％ Dec. 31, 2023	Through other comprehensive income measured at fair value of book amount
		$ 64,996
Credit Rating Performing	Expected credit loss rate 0%～0.1％	Through other comprehensive income measured at fair value of book amount
		$ 60,885

The allowance for impairment loss of investments in debt instruments at FVTOCI is as follows:

follows:
Balance, beginning of year Provision in this period Derecognise in this period Changes in risk parameters Balance, end of year	For the Year Ended December 31, 2024 $ 12 － － 1 $ 13	For the Year Ended December 31, 2023
		$ 41 － － (29)
		$ 12

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9. Notes and accounts receivable ,net

Notes and accounts receivable ,net
Notes receivable Allowance for doubtful accounts Net amount Accounts receivable Allowance for doubtful accounts Net amount	Dec. 31, 2024 $ 24,066 (241) $ 23,825 Dec. 31, 2024 $ 121,732 (2,437) $ 119,295	Dec. 31, 2023
		$ 39,196 (392)
		$ 38,804
		Dec. 31, 2023
		$ 102,234 (1,858)
		$ 100,376

(1) The crediting period of the Company to a customer in principle shall be 30 days after the invoice date, while partial customers are credit time 30 days to 90 days. In addition to the actual credit impairment of individual customers, the Company makes reference to historical experience, considers the financial situation of individual customers and the industry, competitive advantage and prospects, and differentiates customers into different risk groups and incorporates forward-looking information. The expected loss rate of the Company recognizes the allowance loss.

(2)Aging analysis of accounts receivable of the Company is stated as follows:

Non past due Past due less than 90 days Past due 91-180 days Past due 181-365 days More than 366 days past due Non past due Past due less than 90 days Past due 91-180 days Past due 181-365 days More than 366 days past due		Dec. 31, 2024
	Carrying amount of accounts receivable	Expected credit loss rate	Loss allowance for lifetime expected credit losses
	$ 144,579 1,219 － － －	1～2％ 2～5％ 10～20％ 50％ 100％ Dec. 31, 2023	$ 2,618 60 － － －
	$ 145,798		$ 2,678
	Carrying amount of accounts receivable	Expected credit loss rate	Loss allowance for lifetime expected credit losses
	$ 139,213 2,151 － － 66	1～2％ 2～5％ 10～20％ 50％ 100％	$ 2,100 84 － － 66
	$ 141,430		$ 2,250

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(3) Movements of the loss allowance of notes and accounts receivable were as follow:

Balance, beginning of year Expected credit impairment loss (gain) Balance, end of year	2024 $ 2,250 428 $ 2,678	2023
		$ 2,505 (255)
		$ 2,250

10. Inventories

• (1) Inventories - Manufacturing

• A. The inventory details related to the rubber department is as follows:

Dec. 31, 2024 Raw materials $ 63,352 Work-in-process 11,585 Finished goods 99,795 Total $ 174,732 The cost of sales related to the rubber department is as follows: 2024 Cost of inventories sold $ 679,460 (Reversal of) Provision for loss on inventories (725) Unamortized fixed manufacturing costs 11,064 Total $ 689,799	Dec. 31, 2023
	$ 67,456 10,204 103,958
	$ 181,618
	2023
	$ 675,866 666 10,692
	$ 687,224

• B. The cost of sales related to the rubber department is as follows:

For the year ended December 31, 2024, the reversal of loss on inventories is due to the

removal part of the inventory that has been listed for decline in price.

• (2) Inventories-Construction Industry

A. The inventory details and contract liabilities related to the construction department is as

follows:

follows:
	Real estate for sale		Contract	liabilities
	Dec. 31,2024	Dec. 31,2023 $ 34,016 14,923 92,728 236,653 262,289 690,521 1,440,362 $ 2,771,492	Dec. 31,2024	Dec. 31,2023
Bridge Upto Zenith Project at Banqiao Modesty Home Project at Banqiao Legend River Project at Xindian Treasure Garden Project in Taichung City 55 TIMELESS Project in Taipei City La Bella Vita Project in Taichung City Ambassador Hotel Project in Kaohsiung City-Real estate under construction	$ 34,016 14,923 92,728 236,653 174,433 587,550 1,440,362		$ － － － － － 6,049 －	$ － － － － － － －
	$ 2,580,665		$ 6,049	$ －

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• a. The Ambassador Hotel Co., Ltd. and Continental Engineering Corporation signed the Ambassador Hotel Project in Kaohsiung City, a collaborative development agreement in November 2021. The reconstruction plan is set out by the Statute for Expediting Reconstruction of Urban Unsafe and Old Buildings and related regulations and requesting demolition and rebuild to the Authority which the new building would be developed, constructed, and sold tripartite mutually. The completion date of the reconstruction building is expected to be 1,600 work days after the approval date of the layout inspection.

• b. The recognition of contract liabilities arises from the timing difference between the transfer of goods or services to customers, thereby satisfying the performance obligation, and the receipt of payment from customers. When the Company satisfies its performance obligation, the contract liabilities are reclassified as revenue.

• c. The situation of pledge & guarantee in detail is shown in Note 32.

• B. The cost of sales related to the construction department is as follows:

11.	Cost of inventories sold Other financial assets Pledged time deposits Time deposits with maturity over three months Total Current Non-current Interest rate range %	2024 $ 208,343 Dec. 31, 2024 $ 20,000 743,135 $ 763,135 $ 743,135 $ 20,000 0.84～4.9	2023
			$ 141,753
			Dec. 31, 2023
			$ 20,000 711,296
			$ 731,296
			$ 711,296
			$ 20,000
			0.72～5.6

The pledged time deposit serves as guaranty for logistics business and it is shown in Note 32.

12. Investments accounted for using equity method

Investments in subsidiaries Investments in associates Total	Dec. 31, 2024 $ 2,055,300 148,721 $ 2,204,021	Dec. 31, 2023
		$ 1,868,658 127,642
		$ 1,996,300

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(1) The investment of subsidiaries is listed as follows:

Name of Investee	Book	value	The percentage of ownership interest and voting right directly held by the Company	The percentage of ownership interest and voting right directly held by the Company
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Unlisted (OTC) companies Ban Chien Development Co., Ltd. (Taiwan) FRG US Corp. (San Francisco) KINGSHALE INDUSTRIAL LIMITED (Hong Kong) Total	$ 1,310,350 744,950 －	$ 1,100,100 768,558 －	100.00 100.00 99.99	100.00 100.00 99.99
	$ 2,055,300	$ 1,868,658

The Company invests in the development project of 950 Market Street in San Francisco, USA with Continental Construction Group, the establishment of FRG US Corp. was approved by the board of directors in 2017, with an investment limit of USD 37,500 thousand. Its main businesses are real estate investment, development and rental and sales of premises.

As of December 31, 2024 and 2023, FRG had cumulatively remitted Investment funds are NT$ 993,446 thousand (USD 32,474 thousand) and NT$ 938,955 thousand (USD 30,802 thousand).

(2) The investment of associates is listed as follows:

Name of Investee	Book	value	The percentage of ownership interest and voting right directly held bythe Company	The percentage of ownership interest and voting right directly held bythe Company
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Unlisted (OTC) companies Formosan Construction Corp. (Taiwan) Fenghe Development Co., Ltd. (Taiwan) Rueifu Development Co., Ltd. (Taiwan) Total	$ 91,332 47,030 10,359	$ 77,897 40,433 9,312	26.20 39.90 48.26	26.20 39.90 48.26
	$ 148,721	$ 127,642

(3) Information about associates that are not individually material was as follows

		2024		2023
The Company’s share of:
Net profit from continuing operations for the year	$	15,142	$	19,655
Other comprehensive income		5,937		4,616
Total comprehensive profit (loss)	$	21,079	$	24,271

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• (4) The investment gains and losses and other comprehensive income for the subsidiaries and

associates under the equity method have been recognized according to their audited financials.

13. Property, plant and equipment

Item		For the Year Ended December 31, 2024	For the Year Ended December 31, 2024	For the Year Ended December 31, 2024
	Balance, Beginning of Year	Additions	Disposals	Reclassification	Balance, End of Year
	$ 419,977 602,859 801,984 10,731 170,375 －	$ － 5,152 16,605 － 17,377 1,806	$ － (11,476) (42,524) － (1,398) －	$ － 132 1,571 － － (1,703)	$ 419,977 596,667 777,636 10,731 186,354 103
	2,005,926	40,940	(55,398)	－	1,991,468
		14,630 18,295 259 9,454	(8,771) (24,943) － (1,112)	－ － － －	407,510 707,381 9,926 141,205
Building Machinery equipment Transportation equipment Other equipment Total Net Item
	1,258,210	$ 42,638	$ (34,826)	$ －	1,266,022
	$ 747,716				$ 725,446
	Balance, Beginning of Year	Additions	Disposals	Reclassification	Balance, End of Year
	$ 444,026 599,700 798,819 9,801 158,422 372	$ － 3,159 3,165 930 11,953 －	$ － － － － － －	$ (24,049) － － － － (372)	$ 419,977 602,859 801,984 10,731 170,375 －
	2,011,140	19,207	－	(24,421)	2,005,926
		14,642 18,031 130 7,506	－ － － －	－ － － －	401,651 714,029 9,667 132,863
Building Machinery equipment Transportation equipment Other equipment Total Net
	1,217,901	$ 40,309	$ －	$ －	1,258,210
	$ 793,239				$ 747,716

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• (1) The book values of land are adjusted with basis on the government published land value of 1975, 1979, 1980 and 1981 as well as current government-declared land value of 1992 and 2000; plant buildings and various equipments are re-evaluated in accordance with the commodity price indices in 1973 and 1980. Besides, the original revaluation increments are adjusted in relation to the tax rates of land value increment in compliance with land tax laws in January 2005.

• (2) For the year ended December 31, 2023, reclassification is transferred to Investment property.

• (3) The situation of pledge & guarantee in detail is shown in Note 32.

• Lease

• (1) Right-of-use assets

Right-of-use assets
Cost Building Transportation equipment Total Accumulated depreciation & impairment Building Transportation equipment Total Net Cost Building Transportation equipment Total Accumulated depreciation & impairment Building Transportation equipment Total Net		For the Year Ended	December 31, 2024
	Balance, Beginning of Year	Additions	Disposals	Balance, End of Year
	$ 51,552 7,422	$ － －	$ － －	$ 51,552 7,422
	58,974	－	－	58,974
	25,775 2,210	5,156 2,446	－ －	30,931 4,656
	27,985	$ 7,602	$ －	35,587
	$ 30,989	For the Year Ended	December 31, 2023	$ 23,387
	Balance, Beginning of Year	Additions	Disposals	Balance, End of Year
	$ 51,552 1,965	$ － 5,457	$ － －	$ 51,552 7,422
	53,517	5,457	－	58,974
	20,620 328	5,155 1,882	－ －	25,775 2,210
	20,948	$ 7,037	$ －	27,985
	$ 32,569			$ 30,989

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(2) Lease liabilities

Lease liabilities
Less 1 year Over 1 years Total	For the Year Ended December 31, 2024
	Future minimum lease payments	Interest	Present value of minimum lease payments
	$ 7,646 16,909	$ 231 259	$ 7,415 16,650
	$ 24,555	$ 490	$ 24,065

Range of discount rate for lease liabilities were as 1.09 ％～ 2.07 ％ .

Range of discount rate	for lease liabilities were as 1.09％～2.07％.	for lease liabilities were as 1.09％～2.07％.	for lease liabilities were as 1.09％～2.07％.
Less 1 year Over 1 years Total	For the Year Ended December 31, 2023
	Future minimum lease payments	Interest	Present value of minimum lease payments
	$ 7,980 24,555	$ 332 490	$ 7,648 24,065
	$ 32,535	$ 822	$ 31,713

Range of discount rate for lease liabilities were as 1.09 ％～ 2.07 ％ .

• (3) Other lease information

Other lease information
Expenses relating to short-term leases Total cash outflow for all lease agreements	2024 $ (57) $ (8,037)	2023
		$ (57)
		$ (7,446)

(4) Please see note 31 for the status of transactions with related parties.

15. Investment property, net

Item		For	the Year Ended	December 31, 2024	December 31, 2024
	Balance, Beginning of Year	Additions	Disposals	Impairment	Reclassification	Balance, End of Year
	$ 1,122,911 2,653,319 215,726	$ － － 429,320	$ (17,631) － －	$ － － －	$ － － －	$ 1,105,280 2,653,319 645,046
	3,991,956	429,320	(17,631)	－	－	4,403,645
			－ －	7,654 －	－ －	239,203 1,028,831
Land Building Total Net Fair value	231,549 975,741
	1,207,290	$ 53,090	$ －	$ 7,654	$ －	1,268,034
	$ 2,784,666					$ 3,135,611
	$ 4,758,557					$ 5,368,391

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For the Year Ended December 31, 2023

Item	Balance, Beginning of Year	Additions	Disposals	Impairment	Reclassification	Balance, End of Year
	$ 1,098,862 2,653,319 －	$ － － 215,354	$ － － －	$ － － －	$ 24,049 － 372	$ 1,122,911 2,653,319 215,726
	3,752,181	215,354	－	－	24,421	3,991,956
			－ －	－ －	－ －	231,549 975,741
Land Building Total Net Fair value	231,549 921,771
	1,153,320	$ 53,970	$ －	$ －	$ －	1,207,290
	$ 2,598,861					$ 2,784,666
	$ 4,242,553					$ 4,758,557

• (1) Details of land:

Details of land:
Oiashui Section, Longtan Dahu Section, Miaoli Shuiwei Section, Luzhu Xinban Section, Banqiao Zhuangjing Section, Xindian Total	Dec. 31, 2024		Dec. 31, 2023
	Ping	Cost	Ping	Cost
	16,691 230,253 11,298 140 53	$ 66,692 473,971 248,148 311,775 4,694	16,691 230,253 14,696 140 53	$ 66,692 473,971 265,779 311,775 4,694
		$ 1,105,280		$ 1,122,911

• (2) The Company leases the real estate held for investment, with the lease period as January 1, 2008 to December 31, 2033. Provisions for the lessee to adjust the rent based on market rents when exercising the renewal rights. The lessee does not have a preferential purchase right for the real property at the end of the lease term.

The maturity analysis of lease payments receivable under operating leases of investment properties as of was as follows:

properties as of was as follows:
Year 1 Year 2 Year 3 Year 4 Year 5 Over 5 years Total	Dec. 31, 2024 $ 141,764 80,436 59,927 27,199 22,913 91,652 $ 423,891	Dec. 31, 2023
		$ 163,133 84,867 26,793 19,186 4,257 －
		$ 298,236

37

• (3) As of December 31, 2024 and December 31, 2023, the book value of the investment properties let out stood at NT$2,216,003 thousand and NT$2,269,093 thousand , respectively. The rent incomes during 2024 and 2023 totaled NT$228,355 thousand and NT$218,055 thousand, respectively.

• (4) The Unfinished Construction is the company entrusting Engtown Construction Corp with Longtan Intelligent Park - Area A. Please see note 31 for the status of transactions with related parties.

elated parties.
The capitalized interest Interest rate range％	Dec. 31, 2024 $ 8,305 1.63～2.32	Dec. 31, 2023
		$ 1,404
		1.30～2.26

• (5) The fair value of investment properties is based on the transaction prices of adjacent assets, the economic environment and changes in the current land values published by the Taiwanese government. The assessment is based on market comparators and discounted cash flows. It is Level 3 fair value according to IFRS.

• (6) As of December 31, 2024 and 2023, the land at Dahu Section of Miaoli accumulated losses of reduction were NT$239,203 thousand and NT$231,549 thousand, respectively.

• (7) Details of the farm land lots registered in others’ names due to legal restrictions:

Oiashui Section, Longtan Dahu Section, Miaoli Shuiwei Section, Luzhu Total	Dec. 31, 2024 $ 35,100 94,241 － $ 129,341	Dec. 31, 2023
		$ 35,100 94,241 17,631
		$ 146,972

For the security measures of the aforementioned pieces of farm land, the Company has already periodically checked relevant land transcripts and dispatched its personnel to conduct investigation at any time in order to keep abreast of the use of the land. Part of the land has been pledged to the Company. Please see note 31 (2) D for the status of transactions with related parties.

• (8) The situation of already providing to serve as loan guarantees from financial industries in detail is shown in Note 32.

16. Short-term borrowings

Short-term borrowings
Bank unsecured borrowings Bank guaranteed loan Total Interest rate range %	Dec. 31, 2024 $ 1,035,000 40,000 $ 1,075,000 1.72～2.36	Dec. 31, 2023
		$ 1,140,000 －
		$ 1,140,000
		1.69～2.46

The situation of pledge & guarantee in detail is shown in Note 32.

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17. Long-term borrowings

Long-term borrowings
Long-term borrowings Long-term borrowings, current portion Total Interest rate range %	Dec. 31, 2024 $ 198,000 (198,000) $ － 2.32	Dec. 31, 2023
		$ － －
		$ －
		－

The situation of pledge & guarantee in detail is shown in Note 32.

18. Short-term notes and bills payable

Short-term notes and bills payable
Commercial paper payable Less: Unamortized discount Net amount Interest rate range%	Dec. 31, 2024 $ 150,000 (193) $ 149,807 1.5～1.9	Dec. 31, 2023
		$ 190,000 (119)
		$ 189,881
		1.4～1.75

The situation of pledge & guarantee in detail is shown in Note 32.

19. Employee pensions

(1) Defined contribution plans

The employee retirement plan established by the Company in accordance with “Labor Pension Act” belongs to a defined contribution plans. Concerning the above, the Company would contribute 6% of the monthly salaries of employees to the exclusive individual accounts of Labor Insurance Bureau. In accordance with the above related regulations, the pension costs recognized as expenses in the parent company only comprehensive income statement in 2024 and January 1 to December 31, 2023 are respectively NT$6,132 thousand and NT$6,242 thousand.

(2) Defined benefit plans

• A. The employee retirement plan established by the Company in accordance with “Labor Standard Act” is a defined benefit plans. In accordance with the regulations of the said plan, the employee pensions are calculated by service years and the average wage of six months prior to retirement. For the above, the Company would contribute 2% of the total employee salaries as employee pension fund, to the Supervisory Committee of Workers’ Pension Preparation Fund to be deposited into an exclusive account of Bank of Taiwan. Before the end of year, if it is estimated the balance in the exclusive account is insufficient to pay the estimated labors conforming to retirement conditions in the following year, the Company would contribute the differential amount at once before the end of March in the following year.

39

The retired pension cost amount in parent company only comprehensive income statement listed to expense related to defined benefit plan is as follows:

		2024		2023
Service cost	$	－	$	10
Net interest cost		26		33
List to (profit) loss	$	26	$	43
Re-measurements
Plan assets returns (excl. amount		254		24
that covered in net interest
income)
Actuarial loss-Change of the		－		(3)
demographic assumption
Actuarial profit (loss)-Change of		187		(25)
the financial assumption
Actuarial (loss) profit - Adjustment		(21)		345
with experience
Listed to other comprehensive income	$	420	$	341
The details of the various costs and expenses recognized in profit or loss are as follows:
		2024		2023
Operating costs	$	20	$	26
Operating expenses		6		17
Total	$	26	$	43
The amount listed in the parent company	only balance sheet for		the obligation occurring
from the defined benefit plan is as follows:
		Dec. 31, 2024		Dec. 31, 2023
Defined benefit obligation present value	$	4,901	$	5,005
Plan asset fair value		(3,303)		(2,874)
Net defined benefit liability (assets)	$	1,598	$	2,131
The changed of defined benefit obligation present value of this Company is as follows:
		2024		2023
Beginning defined benefit obligation	$	5,005	$	5,387
Interest expense		62		70
Re-measurements
Actuarial loss- Change of the		－		3
demographic assumption
Actuarial (profit) loss- Change of the		(187)		25
financial assumption
Actuarial loss (profit) - Adjustment		21		(345)
with experience
Planned repayments		－		(135)
Ending defined benefit obligation	$	4,901	$	5,005

40

The changed of plan asset fair value of this Company is as follows:

Beginning plan asset fair value Interest income Re-measurements Plan assets returns (excl. amount that covered in net interest income) Contribution by employer Redemption or curtailments payment Ending plan asset fair value	2024 $ 2,874 36 254 139 － $ 3,303	2023
		$ 2,812 38 24 146 (146)
		$ 2,874

The assets of defined benefits held by our company are deposited in financial institutions and invested in equity securities in Taiwan and overseas within the percentages and absolute amounts stipulated by the Bank of Taiwan for the discretionary investment of the funds for specific years. The operation of the funds is under the oversight by the Labor Pension fund Supervisory Committee. The minimum yields on the funds p.a. shall not fall below the two-year time deposit rates offered by local banks. Any insufficiency shall be made up by the national treasury following the approval from competent authorities.

Classification of Fair Values for Planned Assets

		Dec. 31, 2024		Dec. 31, 2023
Cash and cash equivalents	$	3,303	$	2,874
The main assumptions of the Company’s	actuarial valuation are as follows:
		Dec. 31, 2024		Dec. 31, 2023
Discount rate		1.65％		1.25％
Expected increase in future salaries		2.00％		2.00％

B. The main assumptions of the Company’s actuarial valuation are as follows:

The Company is exposed to the following risks due to the pension system stipulated by the Labor Standards Act:

a. The impact of the book value of the retirement pensions is as follows for any delta of each 0.25 basis points between the discount rate (or the expected increase in future salaries) and management estimates in 2024 and 2023.

salaries) and management estimates in	2024 and 2023.	2024 and 2023.
Dec. 31, 2024 Discount rate Expected increase in future salaries	Effect on present value of defined benefit obligation
	Actuarial assumption increased 0.25％ $ (112) $ 115	Actuarial assumption decreased 0.25％
		$ 116
		$ (112)

41

Effect on present value of defined benefit obligation

Dec. 31, 2023 Discount rate Expected increase in future salaries	Actuarial assumption increased 0.25％ $ (123) $ 126	Actuarial assumption decreased 0.25％
		$ 127
		$ (122)

Since actuarial assumptions may be mutually related, the possibility of change in an only one assumption is not high. Therefore, the above sensitivity analysis may be unable to reflect the actual change situation of the current value of defined benefits. Besides, in the above sensitivity analysis, the actuary of current value of defined benefits obligations at the end of the reporting period applies projected unit credit method, measured by the same basis of defined benefits liabilities listed in the parent company only balance sheet.

b. The Company expects to contribute the amount of NT$128 thousand to the defined benefit plans within one year after December 31, 2024; the weighted average duration of defined benefits obligations is 9 years.

20. Equity

(1) Share capital - common stock

hare capital - common stock
Authorized capital Issued capital	Dec. 31, 2024 $ 6,800,000 $ 3,035,934	Dec. 31, 2023
		$ 6,800,000
		$ 3,035,934

A.The face value of the issued ordinary shares is NT$10 per share. Each share has one vote and the right to dividends.

B.In June 9, 2023, the Corporation’s Board of Stockholders resolved to reduce cash capital to $ 337,326 thousand with the elimination of 33,733 thousand shares and a 10% capital reduction for increasing equity and EPS, which was approved by the Authority on August 8, 2023.

(2) Capital surplus

Capital surplus
Premium on capital Conversion premium of corporate bonds Gains of disposal of assets Equity net value change of associates by equity method Total	Dec. 31, 2024 $ 716 444,133 1,238 3,658 $ 449,745	Dec. 31, 2023
		$ 716 444,133 1,238 3,658
		$ 449,745

42

In accordance with regulations in laws, the capital surplus shall not be used except for covering company losses, but concerning the overage obtained from issued stock over par value (including issuance of common stock above par value, the premium on capital stock of stock issued for merge, corporate bond conversion premium and treasury stocks transaction, etc.) and capital surplus generated from income of receiving gifts. In the absence of accumulated losses, the Company may issue cash dividends or bonus shares to existing shareholders on a pro rata basis. Per the requirements of the Securities and Exchange Act, the appropriation of capital surplus to share capital is limited to 10% of the paid-in capital.

(3) Retained earnings

• A. In accordance with the Company’s Articles of Incorporation, any earnings during the year should be used to pay all the due taxes and make up the prior losses before distributions as follows:

• a. Provide 10% legal reserve, but it is not applicable to the case where the legal reserve already attains the total capital amount.

• b. If necessary, in accordance with regulations of laws, allowance or reversal of special reserve shall be provided.

• c. The earnings during the year available for distributions, along with the undistributed earnings from previous years, shall be distributed according to the proposal from the board. The distribution to shareholders shall be no less than 5% of the distributable accumulated earnings and shall be approved by the shareholders’ meetings.

The enterprise life cycle of the Company belongs to “maturity period”. However, in order to pursue business sustainable development, respond to the future market demands and consider the future capital expenditure budget of the Company as well as maintenance stable dividend allocation, in which cash dividend shall be no lower than 10% of the total amount of shareholders’ dividend. But in case of fund requirements concerning any major investment plan, major operation change matters and productivity expansion or other major capital expenditures, etc., the board may propose it to be changed to distribution in stock dividend form in whole, and actions may be taken after a report to and consent from the shareholders’ meeting.

The Board of Directors is authorized to pass a resolution for the Company to distribute all or part of dividends or statutory surplus reserves and capital reserves in cash with the attendance of two thirds of the directors and the consent of more than half of the directors in attendance, which shall be reported to the shareholders’ meeting.

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B. Legal reserve

Per the regulations set forth by the Company Act, the Company shall appropriate 10% of after-tax earnings as the legal reserve, until the amount of legal reserve is equivalent to that of paid-in capital, or use the earnings to reverse prior losses. In the absence of losses, the portion of reserves exceeding 25% of the paid-in capital can be used to issue cash dividends or bonus shares.

C. Special reserve

Special reserve
The number of appropriation arising from the first adoption of IFRSs	Dec. 31, 2024 $ 296,475	Dec. 31, 2023
		$ 296,475

Official Letter “Securities Issue” No. 1010012865 and No. 1010047490 released by the Financial Supervisory Commission and the IFRS standards provide answers to the questions regarding the appropriation, utilization and reversal of special reserve. If there is any reversal of the reduction of shareholders’ equity, the reserved portion may be used for earnings distributions.

D. FRG’s earnings distribution plans and cash dividends per share for 2024 and 2023 were resolved by the board of directors on March 11, 2025, and March 12, 2024, respectively, as follows:

as follows:
Cash dividend Dividend per share (NT dollars)	2024	2023
	$ 425,031	$ 394,672
	1.4	1.3

E. FRG’s earnings for 2023 and 2022 were appropriated with 10% allocated to the legal reserve and were approved by the shareholders’ meetings on June 7, 2024, and June 9, 2023, respectively. The approvalsremained the same as the original distribution proposals.

proposals.
2023 2022 Legal reserve $ 61,670 $ 67,016 The board of the Company had resolved to approve the appropriation of the 2024 Legal Reserve on March 11, 2025, as follows: 2024 Legal reserve $ 94,014	2023	2022
	$ 61,670	$ 67,016
		$ 94,014

• F. The board of the Company had resolved to approve the appropriation of the 2024 Legal Reserve on March 11, 2025, as follows:

The Company’s earnings distribution for 2024 is still pending for the approval from the shareholers’ meeting in 2025.

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(4) Other equity interest

	(4) Other equity interest
21.	Balance on Jan. 1, 2024 Exchange differences on translation of foreign financial statements Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income Share of loss (profit) of associates accounted for using equity method Disposal of financial assets at fair value through other comprehensive income - equity instrument Balance on Dec. 31, 2024 Balance on Jan. 1, 2023 Exchange differences on translation of foreign financial statements Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income Share of loss (profit) of associates accounted for using equity method Disposal of financial assets at fair value through other comprehensive income - equity instrument Balance on Dec. 31, 2023 Operating revenue Net sales revenue Construction revenue Rental and logistics revenue Total	Exchange differences on translation of foreign financial statements		Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income		Total
		$ 4,539 49,905 － － －		$ 928,870 － 421,524 88,130 (366,346)		$ 933,409 49,905 421,524 88,130 (366,346)
		$ 54,444		$ 1,072,178		$ 1,126,622
		Exchange differences on translation of foreign financial statements		Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income		Total
		$	(1,037) 5,576 － － －	$ 269,347 － 656,265 100,813 (97,555)		$ 268,310 5,576 656,265 100,813 (97,555)
		$	4,539	$ 928,870		$ 933,409
			2024 $ 884,540 294,753 301,181 $ 1,480,474			2023
					$ 880,166 192,350 284,905
					$ 1,357,421

The amount of revenue recognized at the beginning from the contractual liabilities for the period from January 1 to December 31, 2024 and 2023 is both NT$0 thousand.

45

22. Operating costs

22.	Operating costs
23. 24. 25.	Cost of sales Cost of construction sales Cost of rental and logistics Total Other income Dividend income Other Total Other gains and losses Gains on disposals of investments Foreign currency exchange gain Net loss (gain) on financial assets and liabilities at fair value through profit Miscellaneous expense Other losses Loss on disposal of property, plant and equipment Impairment loss Total Finance costs Interest of bank loan Interest of lease liabilities Interest calculation on deposits Capitalized interest Total	2024 $ 689,799 208,343 106,645 $ 1,004,787 2024 $ 160,311 6,408 $ 166,719 2024 $ 27,217 73,494 103,903 (2,925) (17,631) (20,572) (7,654) $ 155,832 2024 $ 27,392 332 737 (8,305) $ 20,156	2023
			$ 687,224 141,753 106,670
			$ 935,647
			2023
			$ 277,070 5,391
			$ 282,461
			2023
			$ － 3,567 20,635 (1,330) － － －
			$ 22,872
			2023
			$ 26,675 397 658 (1,404)
			$ 26,326

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26. Extra information on the items with the expense characteristics

The employee benefits, depreciation, depletion and amortization expenses incurred in this period are summarized below:

Salary expense Labor and health insurance expenses Pension expense Board compensation Other Personnel expense Personnel expense Depreciation expense		2024			2023
	Operating costs	Operating expense	Total	Operating costs	Operating expense	Total
	$ 95,763 7,490 4,023 － 1,924	$ 66,776 4,685 2,135 13,334 896	$ 162,539 12,175 6,158 13,334 2,820	$ 92,977 7,559 4,131 － 1,737	$ 71,480 4,945 2,154 12,463 827	$ 164,457 12,504 6,285 12,463 2,564
	$ 109,200	$ 87,826	$ 197,026	$ 106,404	$ 91,869	$ 198,273
	$ 83,738	$ 19,592	$ 103,330	$ 82,414	$ 18,902	$ 101,316

As of December 31, 2024 and 2023, the Company had 200 employees. There were 7 non-employee directors and 6 non-employee directors, respectively.

The Company’s average employee benefit expense and the Company’s average salary expense for the year ended December 31, 2024 and 2023 were NT$952 thousand, NT$842 thousand, NT$958 thousand, NT$848 thousand, respectively.

The Company’s average salary expense adjustment for the year ended December 31, 2024 increased by 0.7%.

The Company did not have a supervisor in 2024 and 2023; hence, no remuneration to supervisors had accrued.

The Company's salary compensation policy is as follows:

• (1) Employee Salary: Employee salary mainly includes basic salary (including basic salary and meal allowance), performance bonus, annual salary adjustment for individual performance and year-end bonus. The salary is approved with reference to the market rate of the industry, job category, academic experience, professional knowledge and skills, and professional years of experience, and is better than the average market rate of the industry.

• (2) The compensation policy of the manager is based on the usual industry standard, and takes into account the reasonableness of the relationship with personal performance, the company's operating performance and future risks. The proposal made by the Salary and Compensation Committee will be implemented after the board of directors has approved it.

• (3) Personal performance bonus: The bonus is paid according to the company's operational performance and employees' personal performance.

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• (4) Annual salary adjustment: The Company conducts annual salary adjustment with reference to the overall economic environment, operating profit, employee performance assessment results, and long-term development of the employees, taking into account the salary level of the industry and the overall salary adjustment status of the industry.

Correlation between operating performance and employee compensation:

The Company shall set aside no less than 1% of the Company's annual profit as employee compensation, which shall be distributed in shares or cash as determined by the Board of Directors, and shall be paid to employees of subordinate companies under the conditions set by the Board of Directors; the Company shall set aside no more than 2% of the Company's annual profit as director compensation as determined by the Board of Directors. The remuneration to employees and remuneration to directors shall be reported to the shareholders' meeting. If the Company has an accumulated deficit, the Company shall reserve the amount to cover the deficit in advance, and then allocate the remuneration to employees and directors in accordance with the aforementioned ratio.

The remuneration of directors and other key management personnel is determined by reference to the industry standard, taking into account the reasonableness of the relationship with individual performance, the Company's operating performance and future risks. The proposal made by the Salary and Compensation Committee will be implemented after the board of directors has approved it.

The compensations to employees and the remunerations to directors determined by the board on March 11, 2025 for the year 2024 and on March 12, 2024 for the year 2023 are as follows:

Compensations to employees Remunerations to directors	2024	2024	2023	2023
	Amount	Estimated proportion	Amount	Estimated proportion
	$ 6,571 6,571	1％ 1％	$ 6,014 6,014	1％ 1％

The Company shall allocate from annual profits no less than 1% for compensations to employees and no more than 2% for remunerations to directors. However, annual profits should be prioritized for the reversal of cumulated losses if any.

The abovementioned compensations to employees may be paid with cash or shares. The employees include the employees of subsidiaries which meet the criteria set by the board. However, the remunerations to directors shall be paid in cash only.

Any changes to the published parent company only financial statements shall be treated as changes to accounting estimates and adjusted during the following year. There was no difference between the distributed amount of compensations to employees and remunerations to directors for 2023 and 2022, the recognized amount on the parent company only financial statements for 2023 and 2022.

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Please refer to the details published on TSE Market Observation Post System for the information regarding the decisions by the board and annual general meetings on compensations to employees and remunerations to directors.

27. Income tax

(1) Income tax recognized in profit & loss

The income tax expense listed as profit & loss is composed of as follows:

Income tax current period: Occurred in current year Additionally imposed undistributed earnings Tax Refund for Substantial Investment Deduction Adjustments for prior year Paid for land value increment tax Total Deferred income tax: Occurred in current year Income tax expense listed as loss	2024 $ (59,332) (8,018) 11,557 (4,045) (3,660) (63,498) (6,902) $ (70,400)	2023
		$ (58,844) (12,378) － (127) (3,185)
		(74,534) 4,010
		$ (70,524)

The accounting benefit and income tax expense of current period are adjusted as follows:

Income tax calculated according to the regulated tax rate of before-tax net income The effect of tax in reconciliation items of income tax: When determining taxable income, adjustments should be made to increase Tax-exempt income Additionally imposed undistributed earnings Adjustments for prior year Paid for land value increment tax Tax Refund for Substantial Investment Deduction Other Income tax expense current period	2024 $ 128,772 53,055 (101,083) 8,018 4,045 3,660 (11,557) (21,412) $ 63,498	2023
		$ 117,880 15,872 (70,332) 12,378 127 3,185 － (4,576)
		$ 74,534

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• (2) Income tax expense recognized in other comprehensive income

Remeasurement of defined benefit plans Unrealized loss on valuation of investments in equity instruments measured at fair value through other comprehensive income Exchange differences on translation of foreign financial statements Unrealized loss on valuation of investments in debt instruments measured at fair value through other comprehensive income Income tax related to other comprehensive income	2024 $ (84) 22,770 (12,476) 540 $ 10,750	2023
		$ (68) 18,867 (1,394) 361
		$ 17,766

• (3) Deferred tax assets and liabilities

The analysis on deferred income tax assets and liabilities in balance sheet is as follows:

2024

Net defined benefit liability Unrealized loss on valuation of investments in equity instruments measured at fair value through other comprehensive income Unrealized loss on valuation of investments in debt instruments measured at fair value through other comprehensive income Unrealized exchange loss Other Deferred income tax assets Unrealized loss on valuation of investments in equity instruments measured at fair value through other comprehensive income Exchange differences on translation of foreign financial statements Unrealized exchange gain Other Land value increment tax Deferred income tax (liabilities)	Balance, beginning of year	Recognized in profit (loss)	Recognized in other comprehensive income	Balance, end of year
	$ 426 30,518 507 8,321 15,406	$ (22) － － (8,321) 5,140	$ (84) 27,554 540 － －	$ 320 58,072 1,047 － 20,546
	$ 55,178	$ (3,203)	$ 28,010	$ 79,985
	$ (263) (1,135) － (3,191) (166,357)	$ － － (6,890) 3,191 －	$ (4,784) (12,476) － － －	$ (5,047) (13,611) (6,890) － (166,357)
	$ (170,946)	$ (3,699)	$ (17,260)	$ (191,905)

50

Net defined benefit liability Unrealized loss on valuation of investments in equity instruments measured at fair value through other comprehensive income Exchange differences on translation of foreign financial statements Unrealized loss on valuation of investments in debt instruments measured at fair value through other comprehensive income Unrealized exchange loss Other Deferred income tax assets Unrealized loss on valuation of investments in equity instruments measured at fair value through other comprehensive income Exchange differences on translation of foreign financial statements Unrealized exchange gain Other Land value increment tax Deferred income tax (liabilities)		2023	2023
	Balance, beginning of year	Recognized in profit (loss)	Recognized in other comprehensive income	Balance, end of year
	$ 515 11,388 259 146 4,857 15,704	$ (21) － － － 3,464 (298)	$ (68) 19,130 (259) 361 － －	$ 426 30,518 － 507 8,321 15,406
	$ 32,869	$ 3,145	$ 19,164	$ 55,178
	$ － － (499) (3,557) (166,357)	$ － － 499 366 －	$ (263) (1,135) － － －	$ (263) (1,135) － (3,191) (166,357)
	$(170,413)	$ 865	$ (1,398)	$ (170,946)

• (4) The Company’s income tax settlement application case approved by the competent authority is approved to 2023.

28. EPS

• (1) Basic earnings per share

(1) Basic earnings per share
Net income for the period attributable to owners of the Corporation Weighted average number of ordinary shares (in thousand shares) Basic EPS (NT dollars) (2) Diluted earnings per share Net income for the period attributable to owners of the Corporation Weighted average number of ordinary shares (in thousand shares) Potentially ordinary stock- Employee bonus (in thousand shares) Number of shares of diluted EPS (in thousand shares) Diluted EPS (NT dollars)	2024 $ 573,460 303,593 $ 1.89 2024 $ 573,460 303,593 304 303,897 $ 1.89	2023
		$ 518,877
		323,271
		$ 1.61
		2023
		$ 518,877
		323,271 322
		323,593
		$ 1.60

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If the Company can choose to distribute stocks or cash as the bonus for the employees, when calculating the earnings per share, the distribution of shares to the employees should be taken into consideration. In addition, the potential common shares which will dilute the earnings should be added into the weighted average number to calculate the diluted earnings per share. The distributed number of shares is estimated by the closing price of the common shares at the end of the reporting period (the effect of exclude right and exclude dividends is considered). The dilutive effect of the potential shares distributed to the employees will be taken into consideration when calculating the diluted EPS before the resolution concerning the number of shares to be delivered as bonus for employees is made in the shareholder meeting the following year.

29. Capital Management

The enterprise life cycle of the Company belongs to “maturity period”. However, in order to pursue business sustainable development, respond to the future market demands and consider the future capital expenditure budget of the Company as well as maintenance stable dividend allocation, on the whole, the Company applies a prudent risk management policy.

30. Financial instruments

(1) The types of financial instruments

The types of financial instruments
Financial assets Financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income Amortized cost Cash and cash equivalents Trade receivables Other financial assets Refundable deposits Total Financial liabilities Amortized cost Long&short-term borrowings Short-term bills payable Trade payables Guarantee deposits received Lease liabilities Total	Dec. 31, 2024 $ 19,427 4,671,201 456,908 181,654 763,135 51,970 $ 6,144,295 $ 1,273,000 149,807 227,206 48,438 24,065 $ 1,722,516	Dec. 31, 2023
		$ 36,959 4,057,877 563,696 187,149 731,296 57,050
		$ 5,634,027
		$ 1,140,000 189,881 243,180 45,550 31,713
		$ 1,650,324

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• (2) Fair values of financial instruments

• A. Financial instruments not measured with the fair value

  • The financial assets and financial liabilities not measured by fair values of this company include cash and equivalent cash, accounts receivable, other financial assets, Long&short-term borrowings, short-term bonds payable and accounts payable. The maturity dates of this kind of financial products are rather short that their book values should belong to a reasonable foundation of estimating fair values. The above financial products shall not include refundable deposits and deposit received either, because their repayment dates are uncertain; therefore, their fair values are evaluated by the book values in balance sheets.

• B. Fair value measurement of recognitions in balance sheet

  • The following table provides related analysis of financial instruments measured by fair values after original recognition, and the observable levels of fair values are divided into the first to the third level.

  • a. The first-level fair value measurement refers to an open offer of the same asset or liability from an active market (without being adjusted).

  • b. The second-level fair value measurement refers to a derived fair value of an observable input value belong to the said asset or liability either directly (i.e., price) or indirectly (i.e., to be derived from price) in addition to a first-level open offer.

  • c. The third-level fair value measurement refers to a derived fair value of an input value of asset or liability not based on observable market data (non-observable input value) as the evaluation technique.

• C. Concerning the financial instruments measured by fair values, the basic classification analysis of the Company in accordance with the nature, characteristics and risk as well as fair value level of asset and liability shall be as follows:

  • a. The financial asset and liability measured by fair value on repeatable foundation:

Financial assets at fair value through profit or loss Fund Financial assets at fair value through other comprehensive income Stock of Listed (OTC) companies Stock not classified to listed (OTC) and emerging companies Financial bond Total		Dec. 31, 2024	Dec. 31, 2024
	Level 1	Level 2	Level 3	Total
	$ 19,427	$ －	$ －	$ 19,427
	$ 4,544,109 － 59,763	$ － － －	$ － 67,329 －	$ 4,544,109 67,329 59,763
	$ 4,603,872	$ －	$ 67,329	$ 4,671,201

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Financial assets at fair value through profit or loss Fund Financial assets at fair value through other comprehensive income Stock of Listed (OTC) companies Stock not classified to listed (OTC) and emerging companies Financial bond Total		Dec. 31,2023	Dec. 31,2023
	Level 1	Level 2	Level 3	Total
	$ 36,959	$ －	$ －	$ 36,959
	$ 3,882,169 － 58,352	$ － － －	$ － 117,356 －	$ 3,882,169 117,356 58,352
	$ 3,940,521	$ －	$ 117,356	$ 4,057,877

• b. The financial asset and liability measured by fair value on non-repeatable foundation: none

• D. The first-level fair value measurement item applies a market offer as the fair value input

value, with breakdown as follows:

value, with breakdown as follows:
Item Stock of Listed (OTC) companies Fund and Financial bond	Marketquoted
	Close price The net assets

• E. There was no change between Level 1 and Level 2 fair value measurements in 2023.

• F. In November 2024, Mercuries F&B Co., Ltd., which the Group holds an investment in equity shares of, listed its equity shares on a stock exchange and they are currently actively traded in the market. Because the equity shares now have published price quotation in an active market, the fair value measurement was transferred from Level 3 to Level 1 of the fair value hierarchy since the fourth quarter of 2024.

• G. Adjustment of financial assets with the third-level fair value measurement:

Beginning balance Purchases Capital return due to disinvestment Listed to other comprehensive income of this year Transfer out of Level 3 Ending balance	2024 $ 117,356 － (900) 4,020 (53,147) $ 67,329	2023
		$ 67,342 52,208 (4,000) 1,806 －
		$ 117,356

• H. Level 3 fair value measurement is based on net asset values. The Company takes great caution in the selection of valuation models and valuation parameters for the key, non-observable values. Therefore, the measurement of fair values should be reasonable. The use of different valuation models or valuation parameters may result in different numbers. For example, If the evaluation parameter's share price net multiplier increases, the market liquidity discount decreases, and the weighted average capital cost discount rate decreases, the fair value of the investment will be increased.

54

(3) Objective of financial risk management

The financial risk management of the Company is to manage currency exchange rate risk, interest rate risk, credit risk and liquidity risk related to operation activities. In order to reduce related financial risks, the Company has devoted to identification, evaluation and avoiding uncertainty of market, to reduce any potential unfavorable impact of market changes on the corporate financial performance.

The important financial activities of the Company are specified by the board and in accordance with related specifications and double checked through an internal control system. During the execution period of financial planning, the Company shall scrupulously observe the related financial operation procedures concerning comprehensive financial risk management and division of authority and responsibility.

(4) Market risk

The Company mainly exposes to such market risks as changes in foreign currency exchange rate and changes in interest rate, etc.

A. Foreign currency exchange rate risk

The foreign currency exchange rate risk of the Company mainly comes from Cash and cash equivalents, accounts receivable, other payables priced by foreign currency exchange, Financial assets at fair value through profit or loss as fund, Financial assets at fair value through other comprehensive income as overseas company stock and financial bond, and foreign currency time deposit with maturity period above three months.

The information concerning foreign currency financial assets and liabilities under material impacts of foreign currency exchange rate fluctuation shall be as follows:

Financial assets Monetary items USD HKD JPY RMB Non-monetary items USD JPY Financial liabilities Monetary items USD HKD JPY RMB		Dec. 31, 2024			Dec. 31, 2023
	foreign currency	Exchange rate	Amount	foreign currency	Exchange rate	Amount
	30,158 315 131,486 1,699 377 1,406,170 63 － 16 －	32.73 4.195 0.208 4.453 32.73 0.208 32.83 4.255 0.2121 4.503	987,057 1,323 27,349 7,573 12,354 292,483 2,050 － 3 1	55,883 1,179 132,520 7,120 357 206,108 50 2 55 －	30.66 3.904 0.2154 4.304 30.66 0.2154 30.76 3.964 0.2195 4.354	1,713,376 4,603 28,545 30,653 10,931 44,396 1,531 8 12 1

55

The sensitivity analysis concerning foreign currency exchange rate risk is calculated mainly for the monetary items of foreign currency at the end of the financial reporting period. When the appreciation/ depreciation of NT Dollar vs. foreign currency reaches 1%, the pre-tax profit and loss of the Company from January 1 to December 31, 2024 and 2023 would separately increase/decrease by NT$10,212 thousand and NT$17,756 thousand, respectively.

B. Interest rate risk

The interest rate risk refers to the risk in fair values of non-derivative financial instruments cause by changes of market interest rate. The interest rate risk of the Company mainly comes from Long&short-term borrowings and short-term bonds payable.

Concerning the sensitivity analysis of interest rate risk, it is calculated on basis of the fixed interest rate loan at the end of the financial reporting period, and it is assumed to be held for one year. In case the interest rate rises/drops 1%, the pre-tax profit and loss of the Company from January 1 to December 31, 2024 and 2023 would separately increase/ decrease by NT$14,228 thousand and NT$13,299 thousand, respectively.

• C. Other price risks

The price risk of equity instruments of the Company mainly comes from the investment classified as Financial assets at fair value through other comprehensive income; and all major equity instrument investments may only be conducted after the approval of the board of the Company.

Concerning the sensitivity analysis of equity instrument price risks, it is calculated on basis of the changes in fair values at the end of the financial reporting period. In case the price equity instruments rises/drops 1%, the profit and loss of the Company from January 1 to December 31, 2024 and 2023 would separately increase/decrease by NT$46,114 thousand and NT$39,995 thousand, respectively.

(5) Credit risk management

The credit risk management refers to the opposing party of trade violates contract obligations and causes risks of financial loss to the Company. The credit risk of the Company comes mainly from the accounts receivable generated from operation activities, and bank deposits generated from investment activities and other financial instruments. Operation related credit risks and financial credit risks are under separate management.

56

A. Operation related credit risks

In order to maintain the quality of accounts receivable, the Company already establishes the procedures of operation related credit risks. The risk evaluation of an individual customer considers such numerous factors with potential impacts on customer payment abilities as the financial status of the said customer, internal credit ratings of the Company, historical trade record and current economic status, etc. The Company would also in due time uses certain credit enhancement tools, such as sales revenue received in advance and credit insurance, etc., to reduce credit risks of specific customers.

Up to December 31, 2024 and December 31, 2023, the accounts receivable balances of the top 10 major customers account for the accounts receivable balances of the Company respectively as 58% and 54%; the risk concentration risks of the rest accounts receivable are relatively not major.

B. Financial credit risk

The credit risks of bank deposit and other financial instruments are measured and supervised by the Finance Department of the Company. Since the trade parties of the Company are all domestic banks with commendable credit, there is no suspicion of major contract performance; therefore, there is no major credit risk.

(6) Liquidity risk management

The object of liquidity risk management of the Company is to maintain cash and equivalent cash required for operation, securities with high liquidity, and sufficient bank financing quota, etc., to ensure the Company to possess sufficient financial flexibility, operation fund sufficient to cope up with the financial liabilities with agreed repayment periods.

A. The liquidity of non-derivative financial assets and liabilities

		Dec. 31, 2024
Less than 1 year	2～3 years	4～5 years	Over 5 years	Total
$ 1,281,916 150,000 227,206 7,646 30,994	$ － － － 11,469 11,549	$ － － － 5,440 1,885	$ － － － － 4,010	$ 1,281,916 150,000 227,206 24,555 48,438

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Dec. 31, 2023

			Dec. 31,2023
Non-derivative financial liabilities Short-term borrowing Short-term notesand bills payable Trade payables Lease liabilities Guarantee deposits received Total	Less than 1 year	2～3 years	4～5 years	Over 5 years	Total
	$ 1,146,004 190,000 243,180 7,980 25,646	$ － － － 13,676 16,822	$ － － － 10,879 3,082	$ － － － － －	$ 1,146,004 190,000 243,180 32,535 45,550
	$1,612,810	$ 30,498	$ 13,961	$ －	$1,657,269

B. Loan commitments

Loan commitments
Unsecured bank overdraft limit -Amount used -Amount unused Unsecured bank loan limit -Amount used -Amount unused Secured bank loan limit -Amount used -Amount unused	Dec. 31, 2024 $ － 60,000 $ 60,000 $ 1,185,000 1,610,000 $ 2,795,000 $ 238,000 1,072,000 $ 1,310,000	Dec. 31, 2023
		$ － 60,000
		$ 60,000
		$ 1,300,000 2,710,000
		$ 4,010,000
		$ － 170,000
		$ 170,000

31. Related party transaction

(1) Name and relation ship with related parties

Name of related parties

Ban Chien Development Co., Ltd. (Ban Chien Development) FRG US Corp. (FRG US)

Formosan Construction Corp. (Formosan Construction)

Eurogear Corporation (Eurogear)

Chen Hsi Investment CO, LTD (Chen His Investment)

Hung He Development CO, LTD (Hung He Development)

Fenghe International Co., Ltd. (Fenghe International) Engtown Construction Corp (Engtown Construction) HSU, ZHEN-TSAI

KHL Architects & Planners (KHL)

Relationship with the Company

The Company’s subsidiaries

The Company’s subsidiaries

• [Investee company accounted for using the ] equity method

• [The president is the representative of the ] Company’s legal person director

• [The president is the spouse of the general ] manager of the Company

• [The president is the spouse (1st degree of ] kinship) of the Company’s president

• [The president is the general manager of the ] Company

• [The president is the representative of the ] Company’s legal person director

President of Company

• [The representative is the representative of the ] Company’s legal person director

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• (2) Major transaction with related parties

A. Operating revenue -Rental

Operating revenue -Rental
Other Guarantee deposits received	2024 $ 2,208 Dec. 31, 2024 $ 274	2023
		$ 1,187
		Dec. 31, 2023
		$ 274

The subsidiaries and related enterprise lease the office to the Company, and the lease content is determined by the agreement between the two parties, and the rent is collected monthly.

• B. Lease agreement

Lease agreement signed by the Company with Formosan Construction, Eurogear, Chen His Investment and Hung He Development in December 2018., with the lease period as of December, 2018 to December, 2028. The lease agreement is based on the Consumer Price Index (CPI) in the sixth, and it adjusts the rent according to the accumulated average CPI increase in the previous year. The Company does not have a preferential purchase right for the real property at the end of the lease term. The rent is the monthly payment.

	the monthly payment.
C.	lease liabilities		Dec. 31, 2024 $ 4,229 4,055 8,610 4,405 $ 21,299 Dec. 31, 2024 $ 1,167 2024 $ 259 $ 5,155 2024 $ －	Dec. 31, 2023
	Formosan Construction Eurogear Chen Hsi Investment Hung He Development Total Refundable deposits Interest expense Depreciation expense Labor remuneration and expenses KHL			$ 5,257 5,042 10,705 5,476
				$ 26,480
				Dec. 31, 2023
				$ 1,167
				2023
				$ 315
				$ 5,155
				2023
				$ 2,576

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• D. As of December 31, 2024 and 2023, the farmland of investment property held in the name of the major management of FRG amount to NT$109,204 thousand. Its ownership certificate is under custody of the Company, and its pledge is set to the Company for security purpose.

• E. Acquisition of Investment property

Acquisition of Investment property
Engtown Construction	2024 $ 415,905	2023
		$ 204,286

The Company commissioned Engtown in 2022 to work on the new construction project in Longtan Intelligent Park - Area A on the self-owned land with a total contract amount of NT$ 770,000 thousand (tax inclusive). As of December 31, 2024, the first to the eleventh phases of the project payments had been paid in the amount of NT$ 651,200 thousand (tax inclusive).

(3) Reward to major management

The remuneration information to board directors and other major management members shall be as follows:

hall be as follows:
Short-term benefits Retirement benefit Total	2024 $ 59,811 679 $ 60,490	2023
		$ 62,805 707
		$ 63,513

32. Pledged assets

The following assets are already provided to serve for guarantee of financial industry loans, material purchase and international logistics business, with the book amounts as follows:

Other financial assets Land under construction Property, plant and equipment Investment property - house and land Total	Dec. 31, 2024 $ 20,000 1,440,362 279,623 186,297 $ 1,926,282	Dec. 31, 2023
		$ 20,000 1,440,362 281,673 186,297
		$ 1,928,332

33. Material contingent liabilities and unrecognized contract promise

• (1) The total price of the construction contract signed by the Company for the new construction project was NT$770,000 thousand, In December 31, 2024 for which the payment had been paid NT$ 651,200 thousand (tax inclusive)..

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• (2) The notes payable used as security issued by the Company on December 31, 2024 and December 31, 2023 due to the guarantee of the credit extension contract were both NT$3,175,000 thousand.

34. Important disaster loss: None

35. Important subsequent events: None

36. Others:

• (1) The Company purchased farmland in the Luzhu district of Taoyuan in the previous year through a nominee registration under the name of a former employee with the status of yeoman (book value of NT$17,631 thousand before write-off). Both parties agreed that upon the change of land use to industrial land, the former employee would return the land registered in their name to the Company.

• (2) However, in 2018, the Company discovered that the Taoyuan City Government had expropriated three parcels of the aforementioned nominee-registered land. The former employee not only misappropriated the compensation payment for the expropriation for personal use but also failed to inform the Company of the expropriation matters. To protect the Company’s interests, the Company filed two civil lawsuits, one for the return of the nominee-registered land and another to reclaim the expropriation compensation. Additionally, criminal charges for breach of trust and embezzlement were filed against the former employee.

• (3) The criminal case is still under trial in the first instance; as for the civil cases, both have been rejected by the Supreme Court. The Company has lost the lawsuits, and therefore, the related asset has been written off, with a loss of NT$17,631 thousand recognized under other gains and losses. Please refer to Notes 15 and 24 for further details.

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37. Additional disclosed items

• (1) Information regarding the material transaction items

• A. The status of lending capital to others: None

B. The status of endorsement and guarantee for others:

No. (note 1)	Company name of the endorsement / guarantee provider	Recipient of the endorsement/ guarantee	Recipient of the endorsement/ guarantee	Endorsement/ guarantee quota for a individual enterprise (note 3)	Max. balance of the endorsement/ guarantee this period	Ending balance of the endorsement/ guarantee	Actual drawing amount	The endorsement / guarantee amount guaranteed by properties	Percentage of accumulated endorsement / guarantee amount in net value of the latest financial statements	Max. limit of the endorsement / guarantee (note 3)	Endorsement / guarantee from parent company to subsidiary	Endorsement / guarantee from subsidiary to parent company	Endorsement / guarantee to Mainland China
		Company name	Relation
0	The Company	950 Property LLC	Note 2	$ 1,971,143	$ 152,962 (USD 4,659)	$ 152,962 (USD 4,659)	$ 131,987 (USD 4,020)	－	1.16％	$ 3,942,287	－	－	－
0	The Company	950 Property LLC and 950 Retail Property LLC	Note 2	1,971,143	439,764 (USD 13,395)	439,764 (USD 13,395)	438,010 (USD 13,342)	－	3.35%	3,942,287	－	－	－
0	The Company	950 Property LLC	Note 2	1,971,143	119,931 (USD 3,653)	119,931 (USD 3,653)	119,915 (USD 3,653)	－	0.91%	3,942,287	－	－	－

Note 1: The explanation for the number column is as follows:

• (1) Put “0” for the company.

• (2) Put the serial No. starting from 1 for the investees by company category.

• Note 2: The relationships between endorsement/ guarantee provider and recipient: A company that is endorsed by each of the contributing shareholders in accordance with their shareholding ratio because of the joint investment relationship.

• Note 3: According to the Operating procedures of endorsement and guarantee for others, the Company’s endorsement/ guarantee total amount should be no more than 30% of this company’s net value, and its endorsement/ guarantee amount to an individual enterprise should be no more than 15% of the Company’s net value.

62

C. The status of securities held at the end of the period

Name of this Company	Type and name of securities	Relation with securities issuer	Item listed on book		The end of theperiod	The end of theperiod		Remarks
				Share / unit numbers	Book value	Ratio of share holding%	Fair value
FRG	Fund Allianz Global Investors Preferred Securities and Income Fund NN(L) US Credit X Cap USD Stock Formosa Plastics Group Nan Ya Plastics Corporation Formosa Chemicals And Fibre Corporation Far Eastern New Century Corporation China Motor Corporation Taiwan Semiconductor Manufacturing Company Limited Quanta Computer Inc. Jsl Construction & Development Co., Ltd. Huaku Development Co., Ltd. Evergreen Marine Corporation (Taiwan) Ltd. Chang Hwa Commercial Bank, Ltd. E.Sun Financial Holding Co., Ltd. Sinopac Financial Holdings Company Limited Ctbc Financial Holding Co., Ltd. Far Eastern Ai Mai Co., Ltd. Nichidenbo Corporation Wpg Holdings Continental Holdings Corporation Far Eastone Telecommunications Co., Ltd. Pegatron Corporation Brightek Optoelectronic Co., Ltd. FargloryLand Development Co., Ltd.		Financial assets at fair value through profit or loss - current 〃 Financial assets at fair value through other comprehensive income - current 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃	997,009 202 1,088,000 2,514,000 891,000 4,101,761 1,580,000 405,000 781,000 227,988 2,530,600 443,000 5,572,800 80,000 30,436,725 7,015,000 6,226,447 836,000 1,916,600 7,317,000 2,210,000 1,487,000 267,241 2,892,000	$ 9,701 9,726 38,624 75,168 24,324 129,616 125,452 435,375 224,147 21,112 288,488 99,675 99,474 2,156 697,001 274,287 140,095 58,269 131,095 219,876 197,574 136,655 13,148 213,719	－ － 0.02 0.03 0.02 0.08 0.29 － 0.02 0.04 0.83 0.02 0.05 － 0.24 0.03 0.44 0.39 0.11 0.89 0.06 0.06 0.39 0.37	$ 9,701 9,726 38,624 75,168 24,324 129,616 125,452 435,375 224,147 21,112 288,488 99,675 99,474 2,156 697,001 274,287 140,095 58,269 131,095 219,876 197,574 136,655 13,148 213,719

63

Name of this Company	Type and name of securities	Relation with securities issuer	Item listed on book		The end of theperiod	The end of theperiod		Remarks
				Share / unit numbers	Book value	Ratio of share holding%	Fair value
FRG	Chong Hong Construction Co., Ltd. Formosa Petrochemical Corporation Nan Ya Printed Circuit Board Corporation Darfon Electronics Corp. Mediatek Inc. United Microelectronics Corp. Eva Airways Corporation Mercuries F&B Co., Ltd. Leo Systems, Inc. Grand Fortune Securities Co.,Ltd. Shinemore Technology Materials Co., Ltd. Shin Kong Financial Holding Co.,Ltd. Citigroup Inc. Ford Motor Company TOYOTA MOTOR CORP NEXT FUNDS TOPIX Mitsubishi Heavy Ind Tokyo Electron Limited Shin-Etsu Chemical Co. Eslite Corporation Formosan Glass Corporation Formosan Chemical Ind. Corp. Tai Yang Co., Ltd., Yu Ji Venture Capital Corporation Ta Shee Resort Co., Ltd.		Financial assets at fair value through other comprehensive income - current 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 Financial assets at fair value through other comprehensive income – non-current 〃 〃 〃 〃 〃	2,593,000 1,198,000 100,000 727,000 21,000 1,980,000 1,150,000 555,000 818,000 2,984,830 579,125 666,000 1,000 1,000 102,000 45,000 288,000 11,000 9,000 895,300 2,510 22,516 111,395 660,000 1	$ 222,739 41,391 13,050 31,661 29,715 85,239 51,003 39,239 25,603 36,564 3,921 23,543 2,304 324 66,745 27,322 133,167 55,335 9,914 2,685 － 19,503 8,796 17,945 18,400	0.89 0.01 0.02 0.26 － 0.02 0.02 0.84 0.90 0.75 0.89 0.22 － － － － － － － 1.18 4.56 2.25 1.24 10.00 －	$ 222,739 41,391 13,050 31,661 29,715 85,239 51,003 39,239 25,603 36,564 3,921 23,543 2,304 324 66,745 27,322 133,167 55,335 9,914 2,685 － 19,503 8,796 17,945 18,400

64

Name of this Company	Type and name of securities	Relation with securities issuer	Item listed on book		The end of theperiod	The end of theperiod		Remarks
				Share / unit numbers	Book value	Ratio of share holding%	Fair value
	Corporate Bond Dialine International Airport Limited Lockheed Martin Corporation Apple Inc.		Financial assets at fair value through other comprehensive income - current 〃 〃	480,000 500,000 1,000,000	$ 15,643 14,496 29,624	－ － －	$ 15,643 14,496 29,624
Ban Chien Development Co., Ltd.	Fund Yuanta Taiwan Dividend Plus ETF Stock Sinopac Financial Holdings Company Limited Chong Hong Construction Co., Ltd. Taiwan Cement Corporation Farglory Land Development Co., Ltd. Yuanta Financial Holding Co., Ltd. Qisda Corporation Eva Airways Corporation China Motor Corporation Ctbc Financial Holding Co., Ltd.		Financial assets at fair value through profit or loss - current Financial assets at fair value through other comprehensive income - current 〃 〃 〃 〃 〃 〃 〃 〃	490,000 35,651,052 904,000 791,954 370,000 221,802 210,000 700,000 125,000 1,400,000	17,973 816,409 77,654 25,105 27,343 7,541 7,056 31,045 9,925 54,740	－ 0.28 0.31 0.01 0.05 － 0.01 0.01 0.02 0.01	17,973 816,409 77,654 25,105 27,343 7,541 7,056 31,045 9,925 54,740
FRG US Corp.	Stock TRIMOSA HOLDINGS LLC		Financial assets at fair value through other comprehensive income - non-current	－	676,175	14.56	676,175

65

D. The same securities in which the accumulated amount of buying or selling reached NT$300 million or was more than 20% of the paid-up capital:

Company Name	Type and Name of Marketable Securities (Note 1)	Financial Statement Account	Counterparty Relationship (Note 2)	Relation ship (Note 2)	Beginning Balance	Beginning Balance	Acquisition (Note 3)	Acquisition (Note 3)		Disposal	(Note 3)		Ending Balance (Note 5)	Ending Balance (Note 5)
					Number of Shares	Amount	Number of Shares	Amount	Number of Shares	Amount	Carrying Amount	Gain (Loss) on Disposal	Number of Shares	Amount
FRG	Eva Airways Corporation	Financial assets at fair value through profit or loss - current Financial assets at fair value through other comprehensive income - non-current	－ －	－ －	－ －	$ － －	9,500,000 1,150,000	$ 299,400 40,058	9,500,000 －	$ 345,132 －	$ 299,400 －	$ 45,732 －	－ 1,150,000	$ － 40,058
Ban Chien Developm ent Co., Ltd.	Eva Airways Corporation	Financial assets at fair value through other comprehensive income - non-current	－	－	－	－	700,000	21,980	－	－	－	－	700,000	21,980

Note1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities.

Note2: Fill in the columns two clolumns if securities are accounted for under the equity method; otherwise leaves the columns blank.

Note3 ： The same securities in which the accumulated amount of buying or selling reached NT$300 million or 20% of paid-in capital or more

Note4: The paid-in capital refers to the paid-in capital of the parent company. If the par value per share is not $10 or $0, it shall be calculated by the 10% of the owner’s equity of the parent company’s balance sheets.

Note5: It is the original purchase cost that excluded the valuation adjustment of financial assets measured at fair value.

66

• E. The amount acquiring real estate which reached NT$300 million or was over 20% of the paid-up capital: None

• F. The amount disposing property which reached NT$300 million or was over 20% of the paid-up capital: None

• G. The amount of purchases or sales from or to related parties which reached NT$100 million or was over 20% of the paid-up capital: None

• H. The amount of related party receivables which reached NT$100 million or was more than 20% of the paid-up capital: None

• I. Information regarding transactions of derivative financial products: None

• J. Business relationships and important transactions between parent and subsidiary companies: None

67

(2) Related information to re-investment businesses

Investing company	Investee	Area	Business items	Original investment amount	Original investment amount	Holding at the end of the period	Holding at the end of the period	Holding at the end of the period	Investee’s profit (loss) of current period	Investment profit (loss) recognized current period	Remarks
				End of period for current period	End for last year	Share	Ratio (%)	Book value
The Company	Ban Chien Development Co., Ltd. FRG US Corp. KINGSHALE INDUSTRIAL LIMITED Formosan Construction Corp. (Taiwan) Fenghe Development Co., Ltd. Rueifu Development Co., Ltd.	Taiwan U.S.A. Hong Kong Taiwan Taiwan Taiwan	Consign a contractor to build residential and commercial building for lease and sale Real estate investment, development and rental and sales of premises. Investment Consign a contractor to build commercial building and public housing for lease and sale Consign a contractor to build residential and commercial building for lease and sale International trade, investment consultancy, office building for lease and building/land brokerage.	$ 560,000 993,446 34 75,979 59,850 483	$ 560,000 938,955 34 75,979 59,850 483	56,000,000 16,237,000 9,999 7,597,927 3,990,000 48,260	100.00 100.00 99.99 26.20 39.90 48.26	$ 1,310,350 744,950 － 91,332 47,030 10,359	$ 17,838 (2,707) － 27,669 16,534 2,138	$ 17,838 (2,707) － 7,514 6,596 1,032	Subsidiary Subsidiary Subsidiary

(3) Information of the investment in China: None

68

(4) Information on major shareholders

Information on major shareholders
Shareholding Name of major shareholder	Number of shares	Percentage of ownership
Ruifu Construction Co., Ltd.	30,663,678	10.10%
Formosan Construction Corp.	16,796,553	5.53%
Ascend Gear International Inc.	16,367,342	5.39%
Chen Hsi Investment CO, LTD	15,229,990	5.01%

• Note: A. The major shareholders information was calculated by Taiwan Depository & Clearing Corporation in accordance with the common shares (including treasury shares) and preferred shares in dematerialised form which were registered and held by the shareholders above 5 ％ on the last operating date of each quarter. The share capital which was recorded on the financial statements might be different from the number of shares held in dematerialised form because of the different calculation basis.

• B. As per information above, if the shareholder delivers the shares to the trust, shares will be disclosed based on the trustee’s account. Additionally, according to the Securities and Exchange Act, internal stakeholder whom holds more than 10% of the Company’s share, which includes shares held by the stakeholder and parts delivered to the trust that have decision making rights, should be declared. For information regarding internal stakeholder declaration, please refer to the Market Observation Post System website of the Taiwan Stock Exchange Corporation.

69

38. Department information

The Company has provided the operating segments disclosure in the consolidated financial

statements.

70

STATEMENT OF CASH AND CASH EQUIVALENTS

DECEMBER 31, 2024

		STATEMENT 1 Amount $ 277 245 75,083 218,772 162,531 $ 456,908
Item	Description	Amount
Cash on hand Petty cash Checking accounts Savings accounts Cash equivalent Commercial paper	Including RMB 20 thousand, exchange rate of $4.453 Including USD 2,485 thousand, exchange rate of $ 32.73 RMB 691 thousand, exchange rate of $ 4.453 HKD 315 thousand, exchange rate of $ 4.195 JPY131,486 thousand, exchange rate of $ 0.208 Including USD 1,000 thousand, exchange rate of $ 32.73 Expiration date 2024/11/22～2025/01/20 Interest rates at 1.45％～4.76％	$ 277 245 75,083 218,772 162,531
Total		$ 456,908

71

STATEMENT OF FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS - CURRENT

DECEMBER 31, 2024

								STATEMENT 2	STATEMENT 2	STATEMENT 2
Name of Securitie	Description	Units	Par value	Total price	Rates	Acquisition	Accumulated impairment	Fair value		Remarks
								Unit price	Total price
Fund Allianz Global Investors Preferred Securities and Income Fund NN(L) US Credit X Cap USD	USD	997,009 202.45	－	$ － －	－	$ 10,000 9,400	$ － －	9.73 1,467.87	$ 9,701 9,726	Note
Total				$ －		$ 19,400	$ －		$ 19,427

Note ： US$1 ＝ NT$ 32.73

72

STATEMENT OF FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME - CURRENT

DECEMBER 31, 2024

STATEMENT 3

Name of Securitie	Description	Share / unit numbers	Par value	Total price	Rates	Acquisition	Accumulated impairment	Fair value	Fair value	Remarks
								Unitprice	Totalprice
Stock Formosa Plastics Group Nan Ya Plastics Corporation Formosa Chemicals And Fibre Corporation Far Eastern New Century Corporation China Motor Corporation Taiwan Semiconductor Manufacturing Company Limited Quanta Computer Inc. Jsl Construction & Development Co., Ltd. Huaku Development Co., Ltd. Evergreen Marine Corporation (Taiwan) Ltd. Chang Hwa Commercial Bank, Ltd. E.Sun Financial Holding Co., Ltd. Sinopac Financial Holdings Company Limited Ctbc Financial Holding Co., Ltd. Far Eastern Ai Mai Co., Ltd. Nichidenbo Corporation Wpg Holdings Continental Holdings Corporation Far Eastone Telecommunications Co., Ltd. Pegatron Corporation Brightek Optoelectronic Co., Ltd.		1,088,000 2,514,000 891,000 4,101,761 1,580,000 405,000 781,000 227,988 2,530,600 443,000 5,572,800 80,000 30,436,725 7,015,000 6,226,447 836,000 1,916,600 7,317,000 2,210,000 1,487,000 267,241	10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10	$ 10,880 25,140 8,910 41,018 15,800 4,050 7,810 2,280 25,306 4,430 55,728 800 304,367 70,150 62,264 8,360 19,166 73,170 22,100 14,870 2,672	－ － － － － － － － － － － － － － － － － － － － －	$ 95,372 185,204 88,264 135,008 141,124 250,201 64,628 8,565 187,971 69,020 99,650 850 240,592 249,861 173,900 50,096 93,393 186,788 144,792 96,699 7,860	$ － － － － － － － － － － － － － － － － － － － － －	35.50 29.90 27.30 31.60 79.40 1,075.00 287.00 92.60 114.00 225.00 17.85 26.95 22.90 39.10 22.50 69.70 68.40 30.05 89.40 91.90 49.20	$ 38,624 75,168 24,324 129,616 125,452 435,375 224,147 21,112 288,488 99,675 99,474 2,156 697,001 274,287 140,095 58,269 131,095 219,876 197,574 136,655 13,148

73

Name of Securitie	Description	Share / unit numbers	Par value	Total price	Rates	Acquisition	Accumulated impairment	Fair value	Fair value	Remarks
								Unitprice	Totalprice
Farglory Land Development Co., Ltd. Chong Hong Construction Co., Ltd. Formosa Petrochemical Corporation Nan Ya Printed Circuit Board Corporation Darfon Electronics Corp. Mediatek Inc. United Microelectronics Corp. Eva Airways Corporation Mercuries F&B Co., Ltd. Leo Systems, Inc. Grand Fortune Securities Co.,Ltd. Shinemore Technology Materials Co., Ltd. Shin Kong Financial Holding Co.,Ltd. Citigroup Inc. Ford Motor Company TOYOTA MOTOR CORP NEXT FUNDS TOPIX Mitsubishi Heavy Ind Tokyo Electron Limited Shin-Etsu Chemical Co. Corporate Bond Dialine International Airport Limited Lockheed Martin Corporation Apple Inc	Expires before 2026 Expires before 2046 Expires before 2046	2,892,000 2,593,000 1,198,000 100,000 727,000 21,000 1,980,000 1,150,000 555,000 818,000 2,984,830 579,125 666,000 1,000 1,000 102,000 45,000 288,000 11,000 9,000 480,000 500,000 1,000,000	10 10 10 10 10 10 10 10 10 10 10 10 10	$ 28,920 25,930 11,980 1,000 7,270 210 19,800 11,500 5,550 8,180 29,848 5,791 6,660	－ － － － － － － － － － － － －	$ 152,712 218,784 124,518 26,732 48,214 20,542 97,825 40,058 49,950 29,163 42,127 9,795 29,970 1,889 440 63,237 24,645 83,978 83,433 12,248 13,639 15,341 30,735	－ － － － － － － － － － － － － － － － － － － －	73.90 85.90 34.55 130.50 43.55 1,415.00 43.05 44.35 70.70 31.30 12.25 6.77 35.35 70.39 9.90 3,146.00 2,919.00 2,223.00 24,185.00 5,296.00 0.99570 0.88579 0.90509	$ 213,719 222,739 41,391 13,050 31,661 29,715 85,239 51,003 39,239 25,603 36,564 3,921 23,543 2,304 324 66,745 27,322 133,167 55,335 9,914 15,643 14,496 29,624	Note 1 Note 1 Note Note Note Note Note Note 1 Note 1 Note 1
合計						$ 3,789,813	$ －		$ 4,603,872

Note ： YEN$1 ＝ NT$ 0.208 Note1 ： US$1 ＝ NT$ 32.73

74

STATEMENT OF NOTES RECEIVABLE, NET

DECEMBER 31, 2024

STATEMENT 4

			STATEMENT 4
Client Name	Description	Amount	Remarks
Non related parties： Client A Client B Client C Client D Others Total Less: Loss allowance	Payment for goods 〃 〃 〃 〃	$ 14,109 2,640 2,383 1,285 3,649	The amount of individual client included in others does not exceed 5% of the account balance.
		24,066 (241)
Net		$ 23,825

75

STATEMENT OF ACCOUNTS RECEIVABLE, NET

DECEMBER 31, 2024

STATEMENT 5

			STATEMENT 5
Client Name	Description	Amount	Remarks
Non related parties： Client A Client B Client C Client D Client E Client F Others Total Less: Loss allowance	Payment for goods 〃 〃 〃 〃 〃 Payment for goods and real property	$ 18,201 10,937 9,137 9,113 7,194 6,599 60,551	USD 334 thousand USD 279 thousand USD 278 thousand USD 220 thousand USD 202 thousand The amount of individual client included in others does not exceed 5% of the account balance.
		$ 121,732 (2,437)
Net		$ 119,295

Note1 ： US$1 ＝ NT$ 32.73

76

STATEMENT OF INVENTORIES

DECEMBER 31, 2024

STATEMENT 6

				STATEMENT 6
Item	Description	Amount		Remarks
		Cost	Net Realizable Value
Raw materials Work-in-process Finished goods Subtotal Less: allowance for loss	Chemical raw materials and Original cloth, etc. Rubber Sheet, Eco-Friendly Synthetic Leather, Synthetic Leather, Rubberized fabric machining, and Rubber raw materials and Plastic raw materials, etc. Rubber Sheet, Eco-Friendly Synthetic Leather, and Synthetic Leather, etc.	$ 108,155 11,585 122,319	$ 63,352 11,585 99,795	Net realizable value is the estimated except that raw materials are based on replacement cost, the selling price of inventories less all estimated costs of completion and costs necessary to make the sale.
		242,059 (67,327)	$ 174,732
Net		$ 174,732

77

STATEMENT OF OTHER FINANCIAL ASSETS-CURRENT

DECEMBER 31, 2024

STATEMENT 7

			STATEMENT 7
Item	Description	Amount	Remarks
Pledged time deposits	CTBC Bank－Chengde (Interest rates at4.59％) (Period 2024.10.22～2025.01.22) First Commercial Bank (Interest rates at4.55％) (Period 2024.11.09～2025.02.09) Land Bank－BanQiao (Interest rates at4.2％) (Period 2024.12.20～2025.03.20) BANK SINOPAC－Chengzhong (Interest rates at4.5％～4.7％) (Period 2024.11.12～2025.11.26) E.SUN Bank－BanQiao (Interest rates at4.53％～4.8％) (Period 2024.12.02～2025.06.09) Mega Bank－BanQiao (Interest rates at4.5％) (Period 2024.11.14～2025.02.14) Taiwan Cooperative Bank－Banxin (Interest rates at4.7％～4.8％) (Period 2024.12.02～2025.03.10) Kaohsiung－Poai (Interest rates at4.6％～4.9％) (Period 2024.11.29～2025.06.05) Hua nan commercial bank (Interest rates at4.2％) (Period 2024.12.19～2025.03.19 Chang Hwa Bank－Taipei (Interest rates at 4.10％～4.65％) (Period 2024.11.05～2025.06.27)	$ 39,145 38,032 44,316 98,812 101,823 71,188 196,380 65,460 35,905 52,074	USD 1,196 thousand USD1,162 thousand USD 1,354 thousand USD3,019 thousand USD3,111 thousand USD2,175 thousand USD6,000 thousand USD2,000 thousand USD1,097 thousand USD1,591 thousand
Total		$ 743,135

Note1 ： US$1 ＝ NT$ 32.73

78

STATEMENT OF FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME - NON-CURRENT

FOR THE YEAR ENDED DECEMBER 31, 2024

STATEMENT 8

Name of Securities	As of January 1, 2024	As of January 1, 2024	Additions	Additions	Decrease	Decrease	As of December 31, 2024	As of December 31, 2024	Accumulated impairment	Collateral	Remarks
	Shares	Amount	Shares	Amount	Shares	Amount	Shares	Fair value
Stock Eslite Corporation Formosan Glass Corporation Formosan Chemical Ind. Corp. Tai Yang Co., Ltd., Yu Ji Venture Capital Corporation Ta Shee Resort Co., Ltd. Mercuries F&B Co., Ltd.	895,300 2,510 22,516 111,395 750,000 1 555,000	$ 6,054 2,259 12,506 8,264 17,526 17,600 53,147	－ － － － － － －	$ － － 6,997 532 1,319 800 －	－ － － － (90,000) (Note 1) － (555,000) (Note 2)	$ (3,369) (2,259) － － (900) － (53,147)	895,300 2,510 22,516 111,395 660,000 1 －	$ 2,685 － 19,503 8,796 17,945 18,400 －	N/A N/A N/A N/A N/A N/A N/A
Total		$ 117,356		$ 9,648		$ (59,675)		$ 67,329

Note 1: Capital return due to disinvestment

Note 2: In November 2024, after being listed on a stock exchange and having a published price quotation in an active market, it was therefore reclassified as financial assets at fair value through other comprehensive income – current.

79

STATEMENT OF INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD

FOR THE YEAR ENDED DECEMBER 31, 2024

													STATEMENT 9	STATEMENT 9
Name	As of January 1, 2024			Additions		Decrease		As of	December 31, 2024		Fair value / Net assets value		Collateral	Remarks
	Shares		Amount	Shares	Amount	Shares	Amount	Shares	%	Amount	Unit Price (NT$)	Total Amount
Ban Chien Development Co., Ltd. FRG US Corp. KINGSHALE INDUSTRIAL LIMITED Formosan Construction Corp. (Taiwan) Fenghe Development Co., Ltd. Rueifu Development Co., Ltd.	56,000,000 15,401,000 9,999 7,597,927 3,990,000 48,260		$ 1,100,100 768,558 － 77,897 40,433 9,312	－ 836,000 － － － －	$ 210,250 － － 13,435 6,597 1,047	－ － － － － －	$ － (23,608) － － － －	56,000,000 16,237,000 9,999 7,597,927 3,990,000 48,260	100.00 100.00 99.99 26.20 39.90 48.26	$ 1,310,350 744,950 － 91,332 47,030 10,359	－	$ －	None None None None None None
Total			$ 1,996,300		$ 348,201		$ (140,480)			$ 2,204,021
Note：Increase(Decrease)		for the period including shares of profit (loss) of subsidiaries and associates, shares of other comprehensive (loss) income of subsidiaries and associates.

Note ： Increase(Decrease) for the period including shares of profit (loss) of subsidiaries and associates, shares of other comprehensive (loss) income of subsidiaries and associates.

80

TATEMENT OF OTHER FINANCIAL ASSETS-CURRENT

DECEMBER 31, 2024

STATEMENT 10

			STATEMENT 10
Item	Description	Amount	Remarks
Pledged time deposits	Cooperative bank－Bansin (Interest rates at 0.84％～1.71％) (Period 2023.11.02～2026.11.02)	$ 20,000	Guarantee of logistics business
Total		$ 20,000

81

STATEMENT OF SHORT-TERM BORROWINGS

DECEMBER 31, 2024

STATEMENT 11

Type	Explanation	Balance, End of Year	Contract Period	Range of Interest Rates (%)	Loan Commitments	Collateral	Remarks
Unsecured borrowings Guaranteed loan	Bank Sinopac Mega Bank E.SUN BANK Bank of Kaohsiung Land Bank of Taiwan Taiwan Cooperative Bank Chang Hua Commercial Bank Hua Nan Commercial Bank First Commercial Bank Bank of Taiwan The Export-Import Bank of the Republic of China Taiwan Cooperative Bank	$ 60,000 50,000 200,000 10,000 50,000 200,000 200,000 10,000 50,000 130,000 75,000 40,000	2024.12.24～2025.02.24 2024.09.09～2025.03.07 2024.10.08～2025.01.08 2024.12.06～2025.01.03 2024.10.25～2025.01.16 2024.11.15～2025.11.14 2024.11.22～2025.05.21 2024.12.30～2025.02.27 2024.12.04～2025.02.27 2024.12.23～2025.03.21 2024.01.11～2025.01.10 2024.12.30～2025.06.30	2.1 2.07 1.85 2.36 2.05 1.88 1.86 2.18 2.03～2.08 1.98 1.72～2.25 2.32	$ 180,000 120,000 200,000 180,000 100,000 200,000 200,000 300,000 100,000 130,000 75,000 500,000
Total		$ 1,075,000

82

STATEMENT OF SHORT-TERM NOTES AND BILLS PAYABLE

DECEMBER 31, 2024

STATEMENT 12

Item	Guarantee/Accepting Institution	Contract Period	Range of Interest Rates (%)		Amount		Remarks
				Issue Amount	Discount Amount	Carrying Amount
Commercial paper	China Bills Mega Bills Ta Ching Bills International Bills	2024.12.06～2025.01.08 2024.12.18～2025.01.16 2024.12.30～2025.02.27 2024.12.26～2025.01.20	1.5％ 1.9％ 1.78％ 1.75％	$ 30,000 40,000 30,000 50,000	$ 12 34 95 52	$ 29,988 39,966 29,905 49,948
Total				$ 150,000	$ 193	$ 149,807

83

STATEMENT OF NOTES PAYABLE

DECEMBER 31, 2024

STATEMENT 13

			STATEMENT 13
Vendor Name	Description	Amount	Remarks
Vendor A Vendor B Vendor C Vendor D Others	Payment for the purchase 〃 〃 〃 Payment for the purchase, expenses, etc.	$ 8,398 7,590 4,024 3,892 51,602	The amount of individual client included in others does not exceed 5% of the account balance.
Total		$ 75,506

STATEMENT OF ACCOUNTS PAYABLE

DECEMBER 31, 2024

STATEMENT 14

			STATEMENT 14
Vendor Name	Description	Amount	Remarks
Vendor A Vendor B Vendor C Vendor D Others	Payment for the purchase 〃 〃 〃 Payment for the purchase, processing charges, etc.	$ 6,052 2,849 2,425 2,374 16,004	The amount of individual client included in others does not exceed 5% of the account balance.
Total		$ 29,704

84

- Long term borrowings

DECEMBER 31, 2024

STATEMENT 15

Type	Explanation	Balance, End of Year	Contract Period	Range of Interest Rates (%)	Loan Commitments	Collateral	Remarks
Guaranteed loan	Taiwan Cooperative Bank	$ 198,000	2024.02.27～2025.06.30	2.32	$ 500,000

85

STATEMENT OF LEASE LIABILITIES

DECEMBER 31, 2024

				STATEMENT 16 Balance End of Year Remarks $ 21,300 2,765 (7,415) $ 16,650	STATEMENT 16 Balance End of Year Remarks $ 21,300 2,765 (7,415) $ 16,650
Item	Description	Lease Term	Discount Rate	Balance End of Year	Remarks
Buildings Transportation equipment	Offices Rental car	2018.12～2028.12 2022.07～2026.07	1.09％ 1.40~2.07％	$ 21,300 2,765 (7,415)
Less: Current portion
				$ 16,650

86

STATEMENT OF OPERATING REVENUE

FOR THE YEAR ENDED DECEMBER 31, 2024

STATEMENT 17

			STATEMENT 17
Item	Shipments	Amount	Remarks
Sales revenue: Synthetic Leather Rubber Sheet Eco-Friendly Synthetic Leather Others Less: Sales returns Sales discounts Subtotal Construction revenue Rental and logistics revenue	3,389 thousand yards 1,923 thousand yards 2,811 thousand yards 132 metric tons	$ 167,593 535,001 163,280 20,911 (530) (1,715)	The amount does not exceed 10% of the total revenue.
		884,540 294,753 301,181
Total		$ 1,480,474

87

STATEMENT OF OPERATING COSTS

FOR THE YEAR ENDED DECEMBER 31, 2024

STATEMENT 18

			STATEMENT 18
Item		Amount	Remarks
	Subtotal	Total
Direct material Raw material, beginning of year Add: raw material purchased Less: raw material, end of year Sale of raw materials Transferred to expenses Indirect material (Supplies) Supplies, beginning of year Add: supplies purchased Less: transferred to manufacturing expenses Direct labor Manufacturing expenses Manufacturing cost Work in process, beginning of year Add: transferred from finished goods Less: work in process, end of year Cost of finished goods Finished goods, beginning of year Add: finished goods purchased Cost of outsourcing Less: finished goods, end of year Finished goods transferred to costs Finished goods Transferred to expenses Finished goods Transferred to outsourcing and finished goods purchased Product cost of sales Finished goods Transferred to outsourcing and finished goods purchased Inventory deficit Raw materials and supplies transferred to sales Reversal of for loss on inventories Unamortized fixed manufacturing costs Total cost of sales Cost of construction Cost of rental and logistics	$ 113,112 466,181 (108,155) (87) (1,011)	$ 470,040 － 60,991 141,441
	－ 2,116 (2,116)
	10,204 2,233 (11,585) 126,354 2,122 2,770 (122,319) (2,584) (295) (4,603)
		672,472
		673,324
		674,769
		4,603 1 87 (725) 11,064
		689,799 208,343 106,645
Total operating costs		$ 1,004,787

88

STATEMENT OF SELLING EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2024

STATEMENT 19

			STATEMENT 19
Item	Description	Amount	Remarks
Wages and salaries Selling expenses of construction Freight Travelling expense Other expenses		$ 15,075 15,414 10,021 4,660 11,307	The amount of each item in others does not exceed 5% of the account balance.
Total		$ 56,477

STATEMENT OF GENERAL AND ADMINISTRATIVE EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2024

STATEMENT 20

			STATEMENT 20
Item	Description	Amount	Remarks
Wages and salaries Taxes Depreciations Entertainment expense Other expenses		$ 60,300 14,180 18,795 9,340 44,665	The amount of each item in others does not exceed 5% of the account balance.
Total		$ 147,280

89

STATEMENT OF RESEARCH AND DEVELOPMENT EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2024

			STATEMENT 21
Item	Description	Amount	Remarks
Wages and salaries Travelling expense Contracted research expense Other expenses		$ 5,390 700 1,763 1,948	The amount of each item in others does not exceed 5% of the account balance.
Total		$ 9,801

90