FT — Annual Report 2025

May 4, 2026

1

Stock Code: 9910

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES

Consolidated Financial Statements

With Independent Auditors’ Report For the Years Ended December 31, 2025 and 2024

Address: No. 52, Kegong 8th Road, Douliu City, Yunlin County Telephone: (05)537-9100

The independent auditors’ report and the accompanying consolidated 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 independent auditors’ report and consolidated financial statements, the Chinese version shall prevail.

2

Table of contents

Contents 1. Cover Page 2. Table of Contents 3. Representation Letter 4. Independent Auditors’ Report 5. Consolidated Balance Sheets 6. Consolidated Statements of Comprehensive Income 7. Consolidated Statements of Changes in Equity 8. Consolidated Statements of Cash Flows 9. Notes to the Consolidated Financial Statements (1) Company history (2) Approval date and procedures of the consolidated financial statements (3) New standards, amendments and interpretations adopted (4) Summary of material accounting policies (5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty (6) Explanation of significant accounts (7) Related-party transactions (8) Pledged assets (9) Commitments and contingencies (10) Losses Due to Major Disasters (11) Subsequent Events (12) Others (13) Other disclosures (a) Information on significant transactions (b) Information on investment (c) Information on investment in mainland China (14) Segment information

Page

1 2 3 4 5 6 7 8 9 9 9～11 11～27 27 27～58 58～59 59 59 59 59 60 61～69 69～71 71～72 73～74

3

Representation Letter

The entities that are required to be included in the combined financial statements of Feng Tay Enterprises Company Limited as of and for the year ended December 31, 2025 under the Criteria Governing the Preparation of Affiliation Reports, Consolidated Business Reports, and Consolidated Financial Statements of Affiliated Enterprises are the same as those included in the consolidated financial statements prepared in conformity with International Financial Reporting Standards No. 10 by the Financial Supervisory Commission, "Consolidated Financial Statements." In addition, the information required to be disclosed in the combined financial statements is included in the consolidated financial statements. Consequently, Feng Tay Enterprises Company Limited and Subsidiaries do not prepare a separate set of combined financial statements.

Company name: Feng Tay Enterprises Company Limited Chairman: Chien - Hung Wang Date: March 10, 2026

4

==> picture [76 x 31] intentionally omitted <==

==> picture [169 x 19] intentionally omitted <==

KPMG

台北市110615信義路5段7號68樓(台北101大樓) 電 話 Tel + 886 2 8101 6666 68F., TAIPEI 101 TOWER, No. 7, Sec. 5, 傳 真 Fax + 886 2 8101 6667 Xinyi Road, Taipei City 110615, Taiwan (R.O.C.) 網 址 Web kpmg.com/tw

Independent Auditors’ Report

To the Board of Directors of The Group:

Opinion

We have audited the consolidated financial statements of Feng Tay Enterprises Company Limited and its subsidiaries (“the Group”), which comprise the consolidated balance sheet as of December 31, 2025 and 2024, the consolidated statement of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of material accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and with the International Financial Reporting Standards (“IFRSs”), International Accounting Standards (“IASs”), Interpretations developed by the International Financial Reporting Interpretations Committee (“IFRIC”) or the former Standing Interpretations Committee (“SIC”) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis of 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 consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

1. Revenue recognition

Please refer to Note (4)(o) of the consolidated financial statements for details of the accounting policies on revenue recognition. Please refer to Note (6)(q) of the consolidated financial statements for details of type of operating revenue.

KPMG, a Taiwan partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

4-1

Description of the key auditor matter:

Feng Tay Enterprises Company Limited principally engages in the production and sale of athletic shoes, and its sales revenues are mainly composed of export revenues. On the one hand, transaction terms and conditions impact the timing of revenue recognition for exports. On the other hand, the transfer of control over goods involves uncertainty. Accordingly, the accuracy of timing of revenue recognition has significant influence on consolidated financial statements. Therefore, we considered revenue recognition for sales before and after the balance sheet date to be a key audit matter.

How the matter was addressed in our audit:

In relation to the key audit matter above, our key audit procedures include assessing whether the internal control related to sales revenue recognized by the Group. was appropriate by testing internal control, so as to ascertain the execution and effectiveness thereof; testing export revenues by sampling relevant documents, so as to verify the accuracy of revenue recognition for exports; performing cut-off tests for revenue recognition for transactions in a sufficient period before and after the reporting date, so as to assess whether the timing of revenue recognition for sales was reasonable.

Other Matter

Feng Tay Enterprises Company Limited has additionally prepared its parent-company-only financial statements as of and for the years ended December 31, 2025 and 2024, on which we have issued an unmodified opinion.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with Regulations Governing the Preparation of Financial Reports by Securities Issuers and IFRSs, IASs, interpretation as well as related guidance endorsed by the Financial Supervisory Commission of the Republic of China, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

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

Those charged with governance (including the Audit Committee) are responsible for overseeing Feng Tay Enterprises Company Limited’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

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

4-2

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

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

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

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

6. Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

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

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

4-3

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

The engagement partners on the audit resulting in this independent auditors’ report are Kuo, Rou-Lan and Chen, Ying-Ju.

KPMG

Taipei, Taiwan (Republic of China) March 10, 2026

Notes to Readers

The accompanying consolidated financial statements are intended only to present the consolidated statement of financial position, financial performance and 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 consolidated financial statements are those generally accepted and applied in the Republic of China.

The independent auditors’ report and the accompanying consolidated 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 independent auditors’ report and consolidated financial statements, the Chinese version shall prevail.

5

(English Translation of Consolidated Financial Statements and Report Originally Issued in Chinese)

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES

Consolidated Balance Sheets

December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

Assets Current assets: 1100 Cash and cash equivalents (Notes (4) and (6)(a)) 1170 Accounts receivable (Notes (4), (6)(b) and (q)) 1200 Other receivables (Note (7)) 1220 Current tax assets 130X Inventories (Notes (4) and (6)(c)) 1476 Other current financial assets (Note (8)) 1479 Other current assets, others Total current assets Non-current assets: 1550 Investments accounted for using equity method (Notes (4) and (6)(d)) 1600 Property, plant and equipment (Notes (4) and (6)(f)) 1755 Right-of-use assets (Notes (4) and (6)(g)) 1760 Investment property, net (Notes (4) and (6)(h)) 1780 Intangible assets (Notes (4) and (6)(i)) 1840 Deferred tax assets (Notes (4) and (6)(n)) 1980 Other non-current financial assets (Note (8)) 1990 Other non-current assets, others Total non-current assets Total assets	December 31, 2025 Amount % $ 5,282,741 10 8,468,314 16 864,933 2 360,490 1 8,670,867 16 8,591 - 970,069 2 24,626,005 47 1,444,980 3 22,075,343 42 1,639,907 3 6,858 - 457,489 1 1,699,644 3 94,327 - 646,437 1 28,064,985 53 $ 52,690,990 100	December 31, 2024 Amount % 5,140,543 9 8,118,995 15 915,173 2 514,210 1 9,237,855 17 956 - 957,965 2 24,885,697 46 1,316,221 2 23,215,335 43 1,768,461 3 56,728 - 459,452 1 1,814,594 3 103,172 - 773,122 2 29,507,085 54 54,392,782 100 Liabilities and Equity Current liabilities: 2100 Short-term borrowings (Note (6)(j)) 2130 Current contract liabilities (Note (6)(q)) 2170 Notes and accounts payable 2200 Other payables 2230 Current tax liabilities 2280 Current lease liabilities (Notes (4) and (6)(l)) 2320 Long-term liabilities, current portion (Note (6)(k)) 2399 Other current liabilities, others Total current liabilities Non-Current liabilities: 2540 Long-term borrowings (Note (6)(k)) 2570 Deferred tax liabilities (Notes (4) and (6)(n)) 2580 Non-current lease liabilities (Notes (4) and (6)(l)) 2640 Non-current net defined benefit liability (Notes (4) and (6)(m)) 2670 Other non-current liabilities, others Total non-current liabilities Total liabilities Equity attributable to owners of parent (Note (6)(o)): 3110 Total capital stock 3200 Capital surplus Retained earnings: 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings Other equity interest: 3410 Exchange differences on translation of foreign financial statements Total equity attributable to owners of parent: 36XX Non-controlling interests Total equity Total liabilities and equity	December 31, 2025	December 31, 2025		December 31, 2024
			Amount	%		Amount % 2,983,008 5 1,141 - 4,131,129 8 5,630,757 10 944,396 2 39,408 - - - 43,842 - 13,773,681 25 3,397,663 6 3,641,904 7 577,463 1 3,935,182 7 238,007 - 11,790,219 21 25,563,900 46 9,874,828 18 49,085 - 6,979,145 13 1,127,303 2 8,449,684 16 360,006 1 26,840,051 50 1,988,831 4 28,828,882 54 54,392,782 100

See accompanying notes to consolidated financial statements.

6

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the Years Ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Common Share)

4000 Operating revenues (Notes (4) and (6)(q)) 5000 Operating costs (Note (6)(c)) Gross profit from operations Operating expenses: 6100 Selling and administrative expenses 6300 Research and development expenses Total operating expenses Net operating income Non-operating income and expenses: 7100 Interest income (Note (6)(s)) 7010 Other income (Notes (6)(s) and (7)) 7020 Other gains and losses, net (Note (6)(s)) 7050 Financial costs (Note (6)(s)) 7060 Share of profit of associates and joint ventures accounted for using equity method (Note (6)(d)) Total non-operating income and expenses 7900 Profit before tax 7950 Income tax expenses (Notes (4) and (6)(n)) Net profit Other comprehensive income: 8310 Item that will not be reclassified subsequently to profit or loss 8311 Gains on remeasurements of defined benefit plans 8320 Share of other comprehensive income (loss) of associates and joint ventures accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss 8349 Income tax related to components of other comprehensive (loss) income that will may not be reclassified to profit (Note (6)(n)) Item that will not be reclassified subsequently to profit or loss 8360 Item that may be reclassified subsequently to profit or loss 8361 Exchange differences on translation of foreign financial statements 8399 Income tax related to components of other comprehensive loss that will may be reclassified to profit or loss (Note (6)(n)) Item that may be reclassified subsequently to profit or loss Other comprehensive income (loss) 8500 Total comprehensive income Net profit, attributable to: 8610 Net profit, attributable to owners of parent 8620 Net profit, attributable to non-controlling interests Comprehensive income attributable to: 8710 Comprehensive income, attributable to owners of parent 8720 Comprehensive income, attributable to non-controlling interests Earnings per common share expressed in dollars (Notes (4) and (6)(p)) 9750 Basic earnings per share	2025	% 100 (78) 22 (10) (3) (13) 9 - - - - - - 9 (3) 6 - - - - (1) - (1) (1) 5 6 - 6 5 - 5 5.10	2024 Amount 87,487,470 (67,674,019) 19,813,451 (9,461,142) (2,961,244) (12,422,386) 7,391,065 75,927 464,371 775,581 (283,973) 159,075 1,190,981 8,582,046 (2,316,489) 6,265,557 716,223 2,480 (146,093) 572,610 1,599,085 (6,332) 1,592,753 2,165,363 8,430,920 5,869,538 396,019 6,265,557 7,930,644 500,276 8,430,920	% 100 (77) 23 (11) (3) (14) 9 - - 1 - - 1 10 (3) 7 1 - - 1 2 - 2 3 10 7 - 7 8 2 10 5.94
	Amount $ 83,512,023 (64,763,996) 18,748,027 (8,354,382) (2,956,533) (11,310,915) 7,437,112 55,303 426,547 70,403 (249,818) 178,894 481,329 7,918,441 (2,493,816) 5,424,625 267,803 3,194 (48,798) 222,199 (1,329,932) 4,516 (1,325,416) (1,103,217) $ 4,321,408 5,036,042 388,583 $ 5,424,625 $ 4,002,519 318,889 $ 4,321,408 $

See accompanying notes to consolidated financial statements.

7

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES

Consolidated Statements of Changes in Equity

For the Years Ended December 31, 2025 and 2024 (Expressed in Thousands of New Taiwan Dollars)

Balance at January 1, 2024 Net profit Other comprehensive income Total comprehensive income Appropriation and distribution of retained earnings: Legal reserve appropriated Special reserve appropriated Cash dividends of ordinary share Due to donated assets received Changes in ownership interests in subsidiaries Changes in non-controlling interests Balance on December 31, 2024 Net profit Other comprehensive income Total comprehensive (loss) income Appropriation and distribution of retained earnings: Legal reserve appropriated Reversal of special reserve Cash dividends of ordinary share Due to donated assets received Changes in ownership interests in subsidiaries Changes in non-controlling interests Balance at December 31, 2025			Equity attributable to owners of	Equity attributable to owners of	parent		Total equity attributable to owners of parent 23,160,248 5,869,538 2,061,106 7,930,644 - - (4,246,176) 1,231 (5,896) - 26,840,051 5,036,042 (1,033,523) 4,002,519 - - (5,036,162) 690 (2,605) - 25,804,493	Non-controlling interests 1,894,583 396,019 104,257 500,276 - - - - 9,042 (415,070) 1,988,831 388,583 (69,694) 318,889 - - - - 2,605 (289,744) 2,020,581	Total equity 25,054,831 6,265,557 2,165,363 8,430,920 - - (4,246,176) 1,231 3,146 (415,070) 28,828,882 5,424,625 (1,103,217) 4,321,408 - - (5,036,162) 690 - (289,744) 27,825,074
	Share capital Ordinary shares $ 9,874,828 - - - - - - - - - 9,874,828 - - - - - - - - - $ 9,874,828	Capital surplus 53,750 - - - - - - 1,231 (5,896) - 49,085 - - - - - - 690 (2,605) - 47,170		Retained earnings	Unappropriated retained earnings 6,829,001 5,869,538 573,797 6,443,335 (502,702) (73,774) (4,246,176) - - - 8,449,684 5,036,042 221,376 5,257,418 (644,333) 1,127,303 (5,036,162) - - - 9,153,910	Total other equity interest Exchange differences on translation of foreign financial statements (1,127,303) - 1,487,309 1,487,309 - - - - - - 360,006 - (1,254,899) (1,254,899) - - - - - - (894,893)
			Legal reserve 6,476,443 - - - 502,702 - - - - - 6,979,145 - - - 644,333 - - - - - 7,623,478	Special reserve 1,053,529 - - - - 73,774 - - - - 1,127,303 - - - - (1,127,303) - - - - -

See accompanying notes to consolidated financial statements.

8

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES

Consolidated Statements of Cash Flows

For the Years Ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

Cash flows from operating activities: Profit before tax Adjustments: Adjustments to reconcile profit: Depreciation expense Amortization expense Interest expense Interest income Share of profit of associates and joint ventures accounted for using equity method Loss on disposal of property, plant and equipment Loss from lease modification Gains on disposal of investment properties (Gain on reversal of) impairment loss Total adjustments to reconcile profit Changes in operating assets and liabilities: Changes in operating assets: Accounts receivable Other receivables Inventories Other current assets, others Other current financial assets Total changes in operating assets Changes in operating liabilities: Current contract liabilities Notes and accounts payable Other payable Other current liabilities, others Net defined benefit liability Other non-current liabilities, others Total changes in operating liabilities Total changes in operating assets and liabilities Total adjustments Cash inflow generated from operations Interest received Interest paid Income taxes paid Net cash flows from operating activities Cash flows used in investing activities: Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Acquisition of intangible assets Proceeds from disposal of intangible assets Proceeds from disposal of investment properties Other non-current financial assets Other non-current assets, others Net cash flows used in investing activities Cash flows used in financing activities: (Decrease) Increase in short-term loans Proceeds from long-term borrowings Repayments of long-term borrowings Payments of lease liabilities Cash dividends paid Change in non-controlling interests Net cash flows used in financing activities Effect of exchange rate changes on cash and cash equivalents Net increase in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period	2025 $ 7,918,441 2,997,085 82,144 249,818 (55,303) (178,894) 3,508 - (294,983) (2,464) 2,800,911 (364,462) 12,904 189,306 (43,083) (7,617) (212,952) 4 (41,973) (342,020) (14,184) 88,043 (9,778) (319,908) (532,860) 2,268,051 10,186,492 54,616 (252,039) (1,267,010) 8,722,059 (3,031,562) 339,620 (85,168) 600 343,512 2,173 (6,811) (2,437,636) (243,493) 2,031,688 (2,217,950) (36,981) (5,036,162) (278,127) (5,781,025) (361,200) 142,198 5,140,543 $ 5,282,741	2024 8,582,046 3,093,775 75,958 283,973 (75,927) (159,075) 32,851 923 (24,895) 33,754 3,261,337 53,722 (92,264) (108,717) 56,540 1,285 (89,434) 73 (269,802) 82,507 (193) 196,516 3,336 12,437 (76,997) 3,184,340 11,766,386 76,097 (287,904) (3,336,651) 8,217,928 (3,053,502) 120,133 (107,232) - 42,817 3,790 20,637 (2,973,357) 686,181 1,646,767 (1,896,543) (37,740) (4,246,176) (409,848) (4,257,359) 294,489 1,281,701 3,858,842 5,140,543

See accompanying notes to consolidated financial statements.

9

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements For the Years Ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(1) Company history

Feng Tay Enterprises Company Limited (hereinafter referred to as “the Company”), founded in 1971, is a manufacturer specialized in athletic shoes. Other business activities include developing and producing casual shoes, ice skates, ski boots, golf balls, soccer balls, backpack, ice hockey helmets and sticks, footwear accessories, as well as shoe molds and tools. The Company’s common shares were listed on the Taiwan Stock Exchange (TWSE) on February 18, 1992. The Company has a headquarter located at the Yunlin Science and Industrial Park, wherein it conducts order management, product development, technology research, finished goods and shoe material trade, and constant cultivation of multinational management talents, while its factories of mass production are spread throughout China, Vietnam, Indonesia, and India. The consolidated financial statements comprise the Company and its subsidiaries (together referred to as the “Group” and individually as “Group entities”). Please refer to note 14 for related information of the Group entities’ main business activities.

(2) Approval date and procedures of the consolidated financial statements:

The consolidated financial statements were authorized for issuance by the Board of Directors on March 10, 2026.

(3) New standards, amendments and interpretations adopted:

• (a) The impact of the IFRS Accounting Standards endorsed by the Financial Supervisory Commission, R.O.C. which have already been adopted.

The Group has initially adopted the following new amendments, which do not have a significant impact on its consolidated financial statements, from January 1, 2025:

• ●Amendments to IAS21 “Lack of Exchangeability”

• (b) The impact of IFRS Accounting Standards endorsed by the FSC but not yet effective

The Group assesses that the adoption of the following new amendments, effective for annual period beginning on January 1, 2026, would not have a significant impact on its consolidated financial statements:

• ●IFRS 17 “Insurance Contracts” and amendments to IFRS 17 “Insurance Contracts”

• ●Amendments to IFRS 9 and IFRS 7 “ Amendments to the Classification and Measurement of Financial Instruments”

• ●Annual Improvements to IFRS Accounting Standards—Volume 11

• ●Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”

(Continued)

10

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

• (c) The impact of IFRS Accounting Standards issued by IASB but not yet endorsed by the FSC

The following new and amended standards, which may be relevant to the Group, have been issued by the International Accounting Standards Board (IASB), but have yet to be endorsed by the FSC:

Standards or Interpretations Content of amendment IFRS 18 “Presentation and The new standard introduces three Disclosure in Financial categories of income and expenses, two Statements” income statement subtotals and one single note on management performance measures. The three amendments, combined with enhanced guidance on how to disaggregate information, set the stage for better and more consistent information for users, and will affect all the entities.

• ●A more structured income statement: under current standards, companies use different formats to present their results, making it difficult for investors to compare financial performance across companies. The new standard promotes a more structured income statement, introducing a newly defined ‘operating profit’ subtotal and a requirement for all income and expenses to be allocated between three new distinct categories based on a company’ s main business activities.

Effective date per IASB January 1, 2027 note:On September 25, 2025, the FSC issued a press release announcing that Taiwan will adopt IFRS 18 beginning in 2028. Entities that need to adopt the new standard earlier may do with the endorsement of the FSC.

• ●Management performance measures (MPMs): the new standard introduces a definition for management performance measures, and requires companies to explain in a single note to the financial statements why the measure provides useful information, how it is calculated and reconcile it to an amount determined under IFRS Accounting Standards.

• ●Greater disaggregation of information: the new standard includes enhanced guidance on how companies group information in the financial statements. This includes guidance on whether information is included in the primary financial statements or is further disaggregated in the notes.

(Continued)

11

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

The Group is evaluating the impact on its consolidated financial position and consolidated financial performance upon the initial adoption of the abovementioned standards or interpretations. The results thereof will be disclosed when the Group completes its evaluation.

The Group does not expect the following other new and amended standards, which have yet to be endorsed by the FSC, to have a significant impact on its consolidated financial statements:

• ●Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”

• ●IFRS 19 “Subsidiaries without Public Accountability: Disclosures” and amendments to IFRS 19 “Subsidiaries without Public Accountability: Disclosures”

• ●Amendments to IAS 21 “Translation to a Hyperinflationary Presentation Currency”

(4) Summary of material accounting policies:

The significant accounting policies presented in the consolidated financial statements are summarized below. Except for those specifically indicated, the following accounting policies were applied consistently throughout the periods presented in the consolidated financial statements.

(a) Statement of compliance

These consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (hereinafter referred to as “the Regulations” ) and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations endorsed and issued into effect by the Financial Supervisory Commission, R.O.C..

• (b) Basis of preparation

• (i) Basis of measurement

Except for the defined benefit liabilities are measured at fair value of the plan assets less the present value of the defined benefit obligation, and financial assets at fair value through other comprehensive income are measured at fair value, the consolidated financial statements have been prepared on a historical cost basis.

• (ii) Functional and presentation currency

The functional currency of each Group entity is determined based on the primary economic environment in which the entity operates. The financial statements are presented in New Taiwan Dollar (TWD), which is the Company’s functional currency. All financial information presented in TWD has been rounded to the nearest thousand.

(Continued)

12

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

(c) Basis of consolidation

• (i) Principles of preparation of the consolidated financial statements

The consolidated financial statements comprise the Company and subsidiaries. Subsidiaries are entities controlled by the Group. The Group ‘controls’ an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases. Intragroup balances and transactions, and any unrealized income and expenses arising from Intragroup transactions are eliminated in preparing the consolidated financial statements. The Group attributes the profit or loss and each component of other comprehensive income to the owners of the parent and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance.

The Group prepares consolidated financial statements using uniform accounting policies for like transactions and other events in similar circumstances. Changes in the Group’s ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received will be recognized directly in equity, and the Group will attribute it to the owners of the parent.

• (ii) List of subsidiaries in the consolidated financial statements

Name of investor	Name of subsidiary	Principal activity	Shareholding December 31, 2025 December 31, 2024 Description % 100.00 % 100.00 PT Feng Tay Indonesia Enterprises was established in Indonesia in 1992, and has paid in capital of USD27,000,000. % 100.00 % 100.00 Growth-Link Overseas Company Limited was established in Bermuda in 1991, and has paid in capital of USD27,513,036 (including share premium of USD27,453,036). % 92.13 % 92.13 VX Holdings Limited was established in British Virgin Islands in 1997, and has paid in capital of USD32,335,923 (including share premium of USD32,254,923). % 100.00 % 100.00 Dona Orient Holdings Limited was established in British Virgin Islands in 2003, and has paid in capital of USD111,593,053 (including share premium of USD111,483,817). % 100.00 % 100.00 PT Rich Valley Indonesia was established in Indonesia in 2019,and has paid in capital of USD36,431,286. % 100.00 % 100.00 Great Eastern Industries Limited, was established in Hong Kong in 2019, and has paid in capital of USD1,000,000 (including share premium of USD999,000). % 100.00 % 100.00 Great South Private Limited was established in Singapore in 2021, and has paid in capital of SGD1,700,000.
			December 31, 2025 % 100.00 % 100.00 % 92.13 % 100.00 % 100.00 % 100.00 % 100.00
The Company、 GLO The Company The Company、 GLO The Company、 GLO The Company、 GLO The Company The Company	PT Feng Tay Indonesia Enterprises Growth-Link Overseas Company Limited(GLO) VX Holdings Limited (VXH) Dona Orient Holdings Limited (DOH) PT Rich Valley Indonesia Great Eastern Industries Limited Great South Private Limited	Manufactures athletic shoes, casual shoes, semi- finished footwear and footwear accessories. Investment holding. Investment holding. Investment holding. Manufactures athletic shoes, casual shoes, semi- finished footwear and footwear accessories. International trade services. Investing holding.

(Continued)

13

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of investor	Name of subsidiary	Principal activity	Shareholding December 31, 2025 December 31, 2024 Description % 96.49 % 95.85 India Tindivanam Footwear Private Limited was established in India in 2022, and has paid in capital of INR5,687,949,690. % 70.00 % 70.00 Fujian Da Feng Holdings Company Limited was established in Fujian Province, China in 1993, and has paid in capital of USD27,000,000. % 100.00 % 100.00 Fujian Lifeng Footwear Industrial Development Company Limited was established in Fujian Province, China in 1988, and has paid in capital of USD15,000,000. % 100.00 % 100.00 Fujian Xiefeng Footwear Company Limited was established in Fujian Province, China in 1989, and has paid in capital of USD15,000,000. % 80.00 % 80.00 Fujian San Feng Footwear Company Limited was established in Fujian Province, China in 1992, and has paid in capital of USD15,000,000. % 50.34 % 50.34 Fujian Putian Xie Feng Mold Company Limited was established in Fujian Province, China in 1991, and has paid in capital of USD3,000,000. % 100.00 % 100.00 Fujian Great Hope Footwear Company Limited was established in Fujian Province, China in 1989, and has paid in capital of USD7,950,000. % 100.00 % 100.00 Suzhou Yufeng Plastic Technology Co., Ltd.,was established in Jiangsu Province, China in 2009, and has paid in capital of USD2,562,738. % 50.00 % 50.00 Fujian Wu Feng Department Store Co., Ltd. was established in Fujian Province, China in 1992, and has paid in capital of USD4,500,000. (Note) % 92.00 % 92.00 Dona Pacific Holdings Limited was established in British Virgin Islands in 2000, and has paid in capital of USD13,558,901 (including share premium of USD13,533,901). % 93.00 % 93.00 VX Mold Company Limited was established in British Virgin Islands in 1999, and has paid in capital of USD400,000. % 88.00 % 88.00 Lotus Footwear Enterprises Private Limited was established in British Virgin Islands in 2006. In May 2025, the company re-domiciled to Singapore, with a paid-in capital of USD79,141,400. % 100.00 % 100.00 Dona Victor Footwear Co., Ltd., was established in Vietnam in 1994, and has paid in capital of USD35,400,000. % 100.00 % 100.00 Vietnam Dona Orient Co.,Ltd., was established in Vietnam in 2003, and has paid in capital of USD44,000,000. % 100.00 % 100.00 Vietnam Dona Standard Footwear Co., Ltd., was established in Vietnam in 2006, and has paid in capital of USD75,700,000. (Continued)
			December 31, 2025 % 96.49 % 70.00 % 100.00 % 100.00 % 80.00 % 50.34 % 100.00 % 100.00 % 50.00 % 92.00 % 93.00 % 88.00 % 100.00 % 100.00 % 100.00
The Company GLO DF GLO and DF GLO and DF GLO GLO, DF, LF and XM LF, GH and XM GLO GLO GLO GLO VXH DOH DOH	India Tindivanam Footwear Private Limited Fujian Da Feng Holdings Company Limited(DF) Fujian Lifeng Footwear Industrial Development Company Limited(LF) Fujian Xiefeng Footwear Company Limited Fujian San Feng Footwear Company Limited Fujian Putian Xie Feng Mold Company Limited(XM) Fujian Great Hope Footwear Company Limited(GH) Suzhou Yufeng Plastics Technology Co., Ltd. Fujian Wu Feng Department Store Co., Ltd. Dona Pacific Holdings Limited (DPH) VX Mold Company Limited(VXM) Lotus Footwear Enterprises Private Limited (LUH) Dona Victor Footwear Co., Ltd. Vietnam Dona Orient Co., Ltd. Vietnam Dona Standard Footwear Co., Ltd.	Manufactures athletic shoes, semi-finished footwear and footwear accessories. Investment holding. Manufactures athletic shoes, semi-finished footwear, and footwear accessories. Manufactures athletic shoes, semi-finished footwear, and footwear accessories. Manufactures athletic shoes, semi-finished footwear, and footwear accessories. Manufactures and repairs molds, cutting dies, shoe lasts, injections, and processing of metal parts. Manufactures athletic shoes, casual shoes, semi- finished footwear, footwear accessories, protective gear, and other supporting products. Manufacturing and processing of plastic products. Wholesaler and retailer of general merchandise, and related services. Investment holding. Investment holding. Investment holding business, and manufacturing and selling of finished shoes. Manufactures athletic shoes, semi-finished footwear, and footwear accessories. Manufactures athletic shoes, semi-finished footwear, and footwear accessories. Manufactures athletic shoes, semi-finished footwear, and footwear accessories.

14

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of investor	Name of subsidiary	Principal activity	Shareholding December 31, 2025 December 31, 2024 Description % 100.00 % 100.00 Vung Tau Orient Co., Ltd., was established in Vietnam in 2005, and has paid in capital of USD41,000,000. % 100.00 % 100.00 Vietnam Nam Ha Footwear Company Limited was established in Vietnam in 2019, and has paid in capital of USD62,000,000. % 100.00 % 100.00 Dona Pacific (Vietnam) Co., Ltd., was established in Vietnam in 2000, and has paid in capital of USD20,000,000. % 100.00 % 100.00 Dona Victor Molds MFG. Co., Ltd., was established in Vietnam in 1999, and has paid in capital of USD3,100,000. % 100.00 % 100.00 Cheyyar SEZ Developers Private Limited was established in Indian in 2006, and has paid in capital of USD119,893,561. % 100.00 % 100.00 East Wind Footwear Company Limited was established in British Virgin Islands in 2010, and has paid in capital of USD15,695,471 (including share premium of USD15,685,720). % 100.00 % 100.00 Fairway Enterprises Company Limited was established in British Virgin Islands in 2014, and has paid in capital of USD43,324,582 (including share premium of USD43,295,081).
			December 31, 2025 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00
DOH DOH DPH VXM GLO and LUH LUH LUH	Vung Tau Orient Co., Ltd. Vietnam Nam Ha Footwear Company Limited Dona Pacific (Vietnam) Co., Ltd. Dona Victor Molds MFG. Co., Ltd. Cheyyar SEZ Developers Private Limited East Wind Footwear Company Limited Fairway Enterprises Company Limited	Manufactures golf balls, soccer balls, backpack and bags. Manufactures athletic shoes, semi-finished footwear, and footwear accessories. Manufactures athletic shoes, semi-finished footwear, and footwear accessories. Manufactures and repairs molds, cutting dies, and processing of metal parts. Development in India’s Industrial Park. Investment holding and production of athletic shoes. Investment holding and production of athletic shoes.

Note: The Group approved the liquidation plan through its Board of Directors on March 6, 2026, and the liquidation procedures are still in progress.

(iii) Subsidiaries excluded from the consolidated financial statements: None.

• (d) Foreign Currency

• (i) Foreign currency transactions

Transactions in foreign currencies are translated into the respective functional currencies of Group entities at the exchange rates at the dates of the transactions. At the end of each subsequent reporting period, monetary items denominated in foreign currencies are translated into the functional currencies using the exchange rate at that date. Non-monetary items denominated in foreign currencies that are measured at fair value are translated into the functional currencies using the exchange rate at the date that the fair value was determined. Non-monetary items denominated in foreign currencies that are measured based on historical cost are translated using the exchange rate on the date of the transaction.

Exchange differences are generally recognized in profit or loss, except for that difference relating to the following, which are recognized in other comprehensive income:

(Continued)

15

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Foreign operations

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated into the presentation currency at the exchange rates at the reporting date. The income and expenses of foreign operations are translated into the presentation currency at the average exchange rate. Exchange differences are recognized in other comprehensive income.

When a foreign operation is disposed of such that control, significant influence, or joint control is lost, the cumulative amount in the translation reserve related to that foreign operation is reclassified to profit or loss as part of the gain or loss on disposal. When the Group disposes of only part of its interest in a subsidiary that includes a foreign operation while retaining control, the relevant proportion of the cumulative amount is reattributed to noncontrolling interests. When the Group disposes of only part of its investment in an associate or joint venture that includes a foreign operation while retaining significant influence or joint control, the relevant proportion of the cumulative amount is reclassified to profit or loss.

When the settlement of a monetary receivable from or payable to a foreign operation is neither planned nor likely to occur in the foreseeable future, Exchange differences arising from such a monetary item that are considered to form part of the net investment in the foreign operation are recognized in other comprehensive income.

• (e) Classification of current and non-current assets and liabilities

The Group classifies the asset as current under one of the following criteria, and all other assets are classified as non-current.

• (i) It is expected to be realized, or intended to be sold or consumed, in the normal operating cycle;

• (ii) It is held primarily for the purpose of trading;

(iii) It is expected to be realized within twelve months after the reporting period; or

• (iv) The asset is cash or a cash equivalent (as defined in IAS 7) unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

The Group classifies the liability as current under one of the following criteria, and all other liabilities are classified as non-current.

• (i) It is expected to be settled in the normal operating cycle;

• (ii) It is held primarily for the purpose of trading;

• (iii) It is due to be settled within twelve months after the reporting period; or

• (iv) The Group does not have the right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period.

(Continued)

16

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

(f) Cash and cash equivalents

Cash comprises cash on hand and demand deposits. Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. Time deposits which meet the above definition and are held for the purpose of meeting short term cash commitments rather than for investment or other purposes should be recognized as cash equivalents.

(g) Financial instruments

Trade receivables are initially recognized when they are originated. All other financial assets and financial liabilities are initially recognized when the Group becomes a party to the contractual provisions of the instrument. A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at fair value through profit or loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price.

(i) Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.

On initial recognition, a financial asset is classified as measured at: amortized cost or FVOCI – equity investment. Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.

1) Financial assets measured at amortized cost

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:

• ‧ it is held within a business model whose objective is to hold assets to collect contractual cash flows; and

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

These assets are subsequently measured at amortized cost, which is the amount at which the financial asset is measured at initial recognition, with change in the cumulative amortization using the effective interest method. In addition, these assets are further adjusted for any loss allowance. Interest income, foreign exchange gains and losses, as well as impairment, are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss

(Continued)

17

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

• 2) Fair value through other comprehensive income (FVOCI)

On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to present subsequent changes in the investment’s fair value in other comprehensive income. This election is made on an instrument-by-instrument basis.

Equity investments at FVOCI are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized in other comprehensive income and are never reclassified to profit or loss.

Dividend income is recognized in profit or loss on the date on which the Group’s right to receive dividend is established.

• 3) Impairment of financial assets

The Group recognizes allowances for expected credit losses (ECL) on financial assets measured at amortized cost (including cash and cash equivalents, trade receivables, other receivable and other financial assets).

The Group measures allowances for credit loss at an amount equal to lifetime expected credit loss (ECL), except for the following which are measured as 12-month ECL:

• ‧ bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition.

Allowance for credit loss for trade receivables are always measured at an amount equal to lifetime ECL.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECL, the Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis based on the Group’s historical experience and informed credit assessment as well as forward-looking information.

ECL are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e the difference between the cash flows due to the Group in accordance with the contract and the cash flows that the Group expects to receive). ECL are discounted at the effective interest rate of the financial asset.

At each reporting date, the Group assesses whether financial assets carried at amortized cost are credit-impaired. A financial asset is ‘credit-impaired’ when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. Evidence that a financial assets is credit-impaired includes the following observable data:

• ‧ significant financial difficulty of the borrower or issuer;

• ‧ a breach of contract such as a default or being past due;

(Continued)

18

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

• ‧ the lender of the borrower, for economic or contractual reasons relating to the borrower's financial difficulty, having granted to the borrower a concession that the lender would not otherwise consider;

• ‧ it is probable that the borrower will enter bankruptcy or other financial reorganization; or

• ‧ the disappearance of an active market for a security because of financial difficulties.

Allowance for credit loss for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets.

The gross carrying amount of a financial asset is written off when the Group has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. For corporate customers, the Group individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. The Group expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Group’s procedures for recovery of amounts due.

4) Derecognition of financial assets

The Group derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Group neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

The Group enters into transactions whereby it transfers assets recognized in its statement of balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognized.

(ii) Financial liabilities

• 1) Other financial liabilities

Financial liabilities not classified as held-for-trading or designated as at fair value through profit or loss, which comprise loans and borrowings, and trade and other payable, are measured at fair value, plus, any directly attributable transaction cost at the time of initial recognition. Subsequent to initial recognition, they are measured at amortized cost calculated using the effective interest method. Interest expense not capitalized as capital cost and foreign exchange gains and losses are recognized in profit or loss, and is included in non-operating income and expenses.

(Continued)

19

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

2) Derecognition of financial liabilities

The Group derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. The Group also derecognizes a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value.

On derecognition of a financial liability, the difference between the carrying amount of a financial liability extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.

• 3) Offsetting of financial assets and liabilities

Financial assets and financial liabilities are offset and the net amount presented in the statement of balance sheet when, and only when, the Group currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously.

(h) Inventories

Inventories are measured at the lower of cost and net realizable value. The cost of inventories includes expenditure incurred in acquiring the inventories, production or conversion costs, and other costs incurred in bringing them to their present location and condition. In the case of manufactured inventories and work in progress, cost includes an appropriate share of production overheads based on normal operating capacity. The cost of inventories of matetials is calculated using the first-infirst-out method for the Company and its subsidiaries in Indonesia, the rest is calculated using the weighted average method.

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.

(i) Joint Arrangements

A joint arrangement is an arrangement of which two or more parties have joint control. The IFRS classifies joint arrangements into two types — joint operations and joint ventures, which have the following characteristics: (a) the parties are bound by a contractual arrangement; and (b) the contractual arrangement gives two or more of those parties joint control of the arrangement. IFRS 11 “ Joint Arrangements” defines joint control as the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities (i.e. activities that significantly affect the returns of the arrangement) require the unanimous consent of the parties sharing control.

A joint venture is a joint arrangement whereby the Group has joint control of the arrangement (i.e. joint venturers) in which the Group has rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities. The Group recognizes its interest in a joint venture as an investment and accounts for that investment using the equity method in accordance with IAS 28 “Investments in Associates and Joint Ventures”, unless the Group qualifies for exemption from that Standard.

(Continued)

20

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

When assessing the classification of a joint arrangement, the Group considers the structure and legal form of the arrangement, the terms in the contractual arrangement, and other facts and circumstances. When the facts and circumstances change, the Group reevaluates whether the classification of the joint arrangement has changed.

When the Group’s share of losses of a joint venture equals or exceeds its interests in a joint venture, it discontinues recognizing its share of further losses. After the recognized interest is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the joint venture.

(j) Investment Property

Investment property is property held either to earn rental income or for capital appreciation or for both, but not for sale in the ordinary course of business, use in the production or supply of goods or services, or for administrative purposes. Investment property is measured at cost on initial recognition, and subsequently at cost, less accumulated depreciation and accumulated impairment losses. Depreciation expense is calculated based on the depreciation method, useful life, and residual value which are the same as those adopted for property, plant and equipment.

Any gain or loss on disposal of an investment property (calculated as the difference between the net proceeds from disposal and the carrying amount) is recognized in profit or loss.

Rental income from investment property is recognized as other revenue on a straight-line basis over the term of the lease. Lease incentives granted are recognized as an integral part of the total rental income, over the term of the lease.

• (k) Property, plant, and equipment

• (i) Recognition and measurement

Items of property, plant and equipment are measured at cost, which includes capitalized borrowing costs, less accumulated depreciation and any accumulated impairment losses.

If significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

Any gain or loss on disposal of an item of property, plant and equipment is recognized in profit or loss.

(ii) Subsequent expenditure

Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to the Group.

• (iii) Depreciation

Depreciation is calculated on the cost of an asset less its residual value and is recognized in profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property, plant and equipment.

(Continued)

21

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

Land is not depreciated.

The estimated useful lives of property, plant and equipment for current and comparative periods are as follows:

1)	Buildings	2 years~ 55 years
2)	Machinery and equipment	2 years~ 13 years
3)	Computer and communication equipment	3 years~ 7 years
4)	Testing equipment	2 years~ 8 years
5)	Transportation equipment	3 years~ 5 years
6)	Office equipment	3 years~ 8 years
7)	Other equipment	2 years~ 8 years

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

(l) Lease

At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

• (i) As a lessee

The Group recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be reliably determined, the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate.

(Continued)

22

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

Lease payments included in the measurement of the lease liability comprise the following:

• － fixed payments, including in substance fixed payments;

• － variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;

• － amounts expected to be payable under a residual value guarantee; and

• － payments for purchase or termination options that are reasonably certain to be exercised.

The lease liability is measured at amortized cost using the effective interest method. It is remeasured when:

• － there is a change in future lease payments arising from the change in an index or rate; or

• － there is a change in the Group’s estimate of the amount expected to be payable under a residual value guarantee; or

• － there is a change in the lease term resulting from a change of its assessment on whether it will exercise an option to purchase the underlying asset; or

• － there is a change of its assessment on whether it will exercise a extension or termination option; or

• －

• there is any lease modifications

When the lease liability is remeasured, other than lease modifications, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or in profit and loss if the carrying amount of the right-of-use asset has been reduced to zero.

When the lease liability is remeasured to reflect the partial or full termination of the lease for lease modifications that decrease the scope of the lease, the Group accounts for the remeasurement of the lease liability by decreasing the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease, and recognize in profit or loss any gain or loss relating to the partial or full termination of the lease.

The Group presents right-of-use assets that do not meet the definition of investment and lease liabilities as a separate line item respectively in the statement of financial position.

The Group has elected not to recognize right-of-use assets and lease liabilities for leases of low-value assets. The Group recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

• (m) Intangible assets

• (i) Goodwill

Goodwill arising on the acquisition of subsidiaries is measured at cost, less accumulated impairment losses.

(Continued)

23

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Other Intangible assets

Other intangible assets acquired by the Group are measured at cost less accumulated amortization and any accumulated impairment losses. Such intangible assets are amortized on a straight line basis over the estimated useful lives and are recognized in profit or loss.

The estimated useful lives for current and comparative periods are as follows:

• 1) computer software: 1~10 years

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

(n) Impairment – non financial assets

At each reporting date, the Group reviews the carrying amounts of its non-financial assets (other than inventories and deferred tax assets) to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. Goodwill is tested annually for impairment.

For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or Cash Generating Units (CGUs). Goodwill arising from a business combination is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the combination.

The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU.

An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its recoverable amount.

Impairment losses are recognized in profit or loss. They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis.

An impairment loss in respect of goodwill is not reversed. For other assets, an impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.

• (o) Revenue Recognition

• (i) Revenue from contracts with customers

Revenue is measured based on the consideration to which the Group expects to be entitled in exchange for transferring goods or services to a customer. The Group recognizes revenue when it satisfies a performance obligation by transferring control of a good or a service to a customer. The accounting policies for the Group’s main types of revenue are explained below.

(Continued)

24

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

1) Sale of goods

Revenue is recognized when the control of a product has been transferred to the customer. When the products are delivered to the customer, the customer has full obligation that could affect the customer’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, the acceptance provisions have lapsed, or the Group has objective evidence that all criteria for acceptance have been satisfied.

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

2) Financing components

The Group does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Group does not adjust any of the transaction prices for the time value of money.

(p) Employee benefits

(i) Defined contribution plans

Obligations for contributions to defined contribution plans are expensed as the related service is provided.

(ii) Defined benefit plans

The Group’s net obligation in respect of defined benefit plans is calculated separately for each the plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.

The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a potential asset for the Group, the recognized asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, consideration is given to any applicable minimum funding requirements.

Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognized immediately in other comprehensive income, and accumulated in retained earnings within equity. The Group determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (asset). Net interest expense and other expenses related to defined benefit plans are recognized in profit or loss.

(Continued)

25

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognized immediately in profit or loss. The Group recognizes gains and losses on the settlement of a defined benefit plan when the settlement occurs.

• (iii) Short-term employee benefits

Short-term employee benefits are expensed as the related service is provided. A liability is recognized for the amount expected to be paid if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

(q) Income taxes

Income taxes comprise current taxes and deferred taxes. Except for expenses related to business combinations or recognized directly in equity or other comprehensive income, all current and deferred taxes are recognized in profit or loss.

The Group has determined that interest and penalties related to income taxes, including uncertain tax treatment, do not meet the definition of income taxes, and therefore accounted for them under IAS 37.

The Group has determined that the global minimum top-up tax – which it is required to pay under Pillar Two legislation – is an income tax in the scope of IAS 12. The Group has applied a temporary mandatory relief from deferred tax accounting for the impacts of the top-up tax and accounts for it as a current tax when it is incurred.

Current taxes comprise the expected tax payables or receivables on the taxable profits (losses) for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payables or receivables are the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date.

Deferred taxes arise due to temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases. Deferred taxes are recognized except for the following:

• (i) temporary differences on the initial recognition of assets and liabilities in a transaction that is not a business combination and at the time of the transaction (i) affects neither accounting nor taxable profits (losses) and (ii) does not give rise to equal taxable and deductible temporary differences;

• (ii) temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that the Group is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and

• (iii) taxable temporary differences arising on the initial recognition of goodwill.

(Continued)

26

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

Deferred tax assets are recognized for the carry forward of unused tax losses, unused tax credits, and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefits will be realized ； such reductions are reversed when the proability of future taxable profits improves.

Deferred taxes are measured at tax rates that are expected to be applied to temporary differences when they reserve, using tax rates enacted or substantively enacted at the reporting date, and reflect uncertainty related to income taxes, if any.

Deferred tax assets and liabilities are offset if the following criteria are met:

• (i) the Group has a legally enforceable right to offset current tax assets against current tax liabilities; and

• (ii) the deferred tax assets and the deferred tax liabilities related to income taxes levied by the same taxation authority on either:

• 1) the same taxable entity; or

• 2) different taxable entities which intend to settle current tax assets and liabilities on a net basis, or to realize the assets and liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

(r) Government grants

The Group recognizes an unconditional government grant related to a biological asset in profit or loss as other income when the grant becomes receivable. Other government grants related to assets are initially recognized as deferred income at fair value if there is reasonable assurance that they will be received and the Group will comply with the conditions associated with the grant; they are then recognized in profit or loss as other income on a systematic basis over the useful life of the asset. Grants that compensate the Group for expenses or losses incurred are recognized in profit or loss on a systematic basis in the periods in which the expenses or losses are recognized.

(s) Earnings per share

The Group discloses the Company’s basic and diluted earnings per share attributable to ordinary shareholders of the Company. Basic earnings per share is calculated as the profit attributable to ordinary shareholders of the Company divided by the weighted average number of ordinary shares outstanding. Diluted earnings per share is calculated as the profit attributable to ordinary shareholders of the Company divided by the weighted average number of ordinary shares outstanding after adjustment for the effects of all potentially dilutive ordinary shares.

(Continued)

27

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

(t) Operating segments

An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the Group). Operating results of the operating segment are regularly reviewed by the Group’s chief operating decision maker to make decisions about resources to be allocated to the segment and to assess its performance. Each operating segment consists of standalone financial information.

(5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty:

In preparing these consolidated financial statements, management has made judgments and estimates about the future, including climate-related risks and opportunities, that affect the application of the accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis and are consistent with the Group’s risk management and climate-related commitments where appropriate. Revisions to estimates are recognised prospectively in the period of the change and future periods.

Information about estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year is as follows:

(a) Valuation of inventories

As inventories are stated at the lower of cost or net realizable value, the Group estimates the net realizable value of inventories for obsolescence and unmarketable items at the end of the reporting period and then writes down the cost of inventories to net realizable value. The net realizable value of the inventory is mainly determined based on assumptions as to future demand within a specific time horizon. Due to the rapid industrial transformation, there may be significant changes in the net realizable value of inventories. Refer to Note (6)(c) for further description of the valuation of inventories.

(6) Explanation of significant accounts:

(a) Cash and cash equivalents

Cash Demand deposits and check deposit Time deposits Cash and cash equivalents in the consolidated statement of cash flows	December 31, 2025 $ 993 1,578,353 3,703,395 $ 5,282,741	December 31, 2024
		1,125 2,221,183 2,918,235
		5,140,543

Please refer to Note (6)(t) for the interest rate risk and sensitivity analysis of the financial assets and liabilities of the Group.

(Continued)

28

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

(b) Accounts receivable

Accounts receivable–measured at amortized cost Less: Allowance for credit loss	December 31, 2025 $ 8,468,314 - $ 8,468,314	December 31, 2024
		8,118,995 -
		8,118,995

The Group applies the simplified approach to provide for its expected credit losses, i.e. the use of lifetime expected loss provision for all accounts receivable. To measure the expected credit losses, accounts receivable have been grouped based on shared credit risk characteristics and the days past due, as well as incorporated forward looking information. The allowance for credit loss was determined as follows:

Current 1 to 10 days past due 11 to 60 days past due 61 days to 1 year past due Current 1 to 10 days past due 11 to 60 days past due 61 days to 1 year past due	December 31, 2025	December 31, 2025
	Gross carrying amount Weighted- average loss rate $ 7,662,698 0.00% 769,410 0.00% 24,123 0.00% 12,083 0.00% $ 8,468,314 December 31, 2024		Allowance for credit loss provision
			- - - -
			-
		Weighted- average loss rate 0.00% 0.00% 0.00% 0.00%	Allowance for credit loss provision
			- - - -
			-

The movement in the allowance for accounts receivable was as follows:

Balance at January 1 Amounts written off Balance at December 31	For the years ended December 31 2025 2024 $ - 7,972 - (7,972) $ - -
	2025 $ - - $ -

As of December 31, 2025 and 2024, the accounts receivable of the Group were not pledged as collateral for its loan.

(Continued)

29

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

(c) Inventories

Raw materials Work in process Finished goods Merchandise inventory Inventory in transit Others	December 31, 2025 $ 3,731,546 1,431,695 2,380,920 165,816 959,328 1,562 $ 8,670,867	December 31, 2024
		3,638,768 1,322,945 3,044,874 89,807 1,140,984 477
		9,237,855

The details of operating cost were as follows:

Cost of goods sold Unallocated production overheads Net (gains) losses on inventories Inventory scrap loss Revenue from sale of scraps Losses on obsolescence and inventory valuation Total	For the years ended December 31 2025 2024 $ 64,206,051 66,749,616 468,615 844,318 (3,819) 1,464 88,541 131,933 (57,152) (59,226) 61,760 5,914 $ 64,763,996 67,674,019
	2025 $ 64,206,051 468,615 (3,819) 88,541 (57,152) 61,760 $ 64,763,996

Write-down of inventory valuation is due to obsolescence or out of use, wherein the amount of the net realizable value of the inventory which is lower than the cost is recognized as operating costs.

As of December 31, 2025 and 2024, the inventory of the Group was not pledged as collateral for its loan.

(d) Investments accounted for using equity method

(i) Joint ventures

Shoe Majesty Co., Ltd. is a joint venture under the Group's joint arrangements. The Group classified the joint agreement as a joint venture using the equity method.

The Group’s financial information for investments accounted for using the equity method that were individually insignificant was as follows:

Individually insignificant joint venture	December 31, 2025 $ 1,444,980	December 31, 2024
		1,316,221

(Continued)

30

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

Attributable to the Group: Profit from continuing operation Other comprehensive income (loss) Comprehensive income	For the years ended December 31	For the years ended December 31
	2025 $ 178,894 (46,524) $ 132,370	2024
		159,075 72,189
		231,264

(ii) Collateral

As of December 31, 2025 and 2024, the investment accounted for using equity method of the Group was not pledged as collateral for its loan.

• (e) Material non-controlling interests of subsidiaries

The material non-controlling interests of subsidiaries were as follows:

Subsidiaries	Main operation place China	Percentage of non-controlling interests December 31, 2025 December 31, 2024 % 30.00 % 30.00
Fujian Da Feng Holdings Company Limited

The following information of the aforementioned subsidiaries have been prepared in accordance with the IFRS Accounting Standards endorsed by the FSC. Included in this information are the fair value adjustment made during the acquisition and the relevant difference in accounting principles between the Group and its subsidiaries as at the acquisition date. Intra-group transactions were not eliminated in this information.

• (i) Fujian Da Feng Holdings Company Limited’s collective financial information:

Current assets Non-current assets Current liabilities Net assets Non-controlling interests	December 31, 2025 $ 440,064 2,367,141 (36,541) $ 2,770,664 $ 831,199	December 31, 2024 332,513 2,385,224 (48,713) 2,669,024 800,707

(Continued)

31

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

Net income Other comprehensive income (loss) Comprehensive income Profit, attributable to non-controlling interests Comprehensive income, attributable to non-controlling interests Net cash flows from operating activities Net cash flows from investing activities Net cash flows used in financing activities Net increase (decrease) in cash and cash equivalents Cash dividends to non-controlling interests

For the years ended December 31 2025 2024 $ 421,419 453,070 (64,048) 142,675 $ 357,371 595,745 $ 126,426 135,921 $ 107,211 178,724 $ 87,541 31,345 391,365 466,463 (354,513) (500,379) $ 124,393 (2,571) $ 106,354 150,114

2025 $ 421,419 (64,048) $ 357,371 $ 126,426 $ 107,211 $ 87,541 391,365 (354,513) $ 124,393 $ 106,354

(f) Property, plant and equipment

The cost, depreciation, and impairment of the property, plant and equipment of the Group for the years ended December 31, 2025 and 2024 were as follows:

Cost: Balance at January 1, 2025 Additions Disposals Reclassifications Effect of changes in foreign exchange rates Balance at December 31, 2025 Balance at January 1, 2024 Additions Disposals Reclassifications Effect of changes in foreign exchange rates Balance at December 31, 2024 Depreciation and impairment loss: Balance at January 1, 2025 Depreciation Reversal of impairment loss Disposals Reclassifications Effect of changes in foreign exchange rates Balance at December 31, 2025	Land $ 1,655,182 252,961 - 49 (18,406)	Buildings 17,751,741 51,736 (94,936) 234,824 (751,587)	Machinery and equipment 26,915,429 349,811 (1,070,138) 1,877,083 (1,094,421)	Computer and communication equipment 593,077 32,176 (24,338) 40,281 (19,142)	Test equipment 115,367 2,493 (1,643) 2,466 -	Transportation equipment 614,205 7,719 (13,498) 42,531 (22,581)	Office equipment 824,475 27,666 (20,713) 23,676 (39,822)	Other equipment 110,137 3,189 (2,335) 438 (1,208)	Equipment to be inspected and construction inprogress 2,793,987 2,614,976 (11,195) (2,221,348) (138,495)	Total 51,373,600 3,342,727 (1,238,796) - (2,085,662)
	$ 1,889,786	17,191,778	26,977,764	622,054	118,683	628,376	815,282	110,221	3,037,925	51,391,869
	$ 1,626,928 - - - 28,254	16,367,909 26,182 (13,508) 528,246 842,912	23,143,581 491,088 (694,571) 2,447,376 1,527,955	524,743 38,628 (32,067) 36,680 25,093	121,169 3,483 (10,138) 853 -	712,250 16,997 (22,108) (134,235) 41,301	674,087 23,534 (17,323) 102,186 41,991	104,760 3,903 (1,228) 889 1,813	2,512,956 3,125,003 - (2,981,995) 138,023	45,788,383 3,728,818 (790,943) - 2,647,342
	$ 1,655,182	17,751,741	26,915,429	593,077	115,367	614,205	824,475	110,137	2,793,987	51,373,600
	$ - - - - - -	8,891,490 651,483 - (87,943) 19,487 (330,569)	17,691,969 1,980,447 (2,464) (747,468) 46,534 (477,142)	449,094 67,663 - (22,982) 1,180 (13,459)	102,400 6,848 - (1,545) - -	336,396 131,935 - (13,658) (66,161) (11,771)	598,993 71,172 - (20,105) (1,040) (25,744)	87,923 6,409 - (1,967) - (879)	- - - - - -	28,158,265 2,915,957 (2,464) (895,668) - (859,564)
	$ -	9,143,948	18,491,876	481,496	107,703	376,741	623,276	91,486	-	29,316,526

(Continued)

32

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

Balance at January 1, 2024 Depreciation Impairment loss Disposals Reclassifications Effect of changes in foreign exchange rates Balance at December 31, 2024 Carrying amounts: Balance at December 31, 2025 Balance at January 1, 2024 Balance at December 31, 2024	Land $ - - - - - -	Buildings 7,778,231 677,116 - (6,986) 30,074 413,055	Machinery and equipment 14,623,148 2,059,754 33,722 (553,399) 94,302 1,434,442	Computer and communication equipment 407,774 53,518 - (30,963) 99 18,666	Test equipment 102,788 9,207 - (9,595) - -	Transportation equipment 331,875 128,762 - (19,280) (124,475) 19,514	Office equipment 511,110 75,080 32 (16,643) - 29,414	Other equipment 81,210 6,497 - (1,093) - 1,309	Equipment to be inspected and construction inprogress - - - - - -	Total 23,836,136 3,009,934 33,754 (637,959) - 1,916,400
	$ -	8,891,490	17,691,969	449,094	102,400	336,396	598,993	87,923	-	28,158,265
	$ 1,889,786	8,047,830	8,485,888	140,558	10,980	251,635	192,006	18,735	3,037,925	22,075,343
	$ 1,626,928	8,589,678	8,520,433	116,969	18,381	380,375	162,977	23,550	2,512,956	21,952,247
	$ 1,655,182	8,860,251	9,223,460	143,983	12,967	277,809	225,482	22,214	2,793,987	23,215,335

For the time being, a portion of the Company's land assets cannot be held in the name of the Company under the law; therefore, they have been respectively registered in the name of trustees— Chien-Hung Wang, Chairman of the Company, and Chien-Rong Wang, Vice Chairman of the Company, with whom the Company has entered into an agreement prescribing the rights and obligations of both parties. The land has been pleged to the Company. An amount of $7,121 thousand was recognized as cost of land.

The Group has been constructing a new development center, plant, and expanding production line since the year 2021. As of December 31, 2025, the projects were still ongoing, with the costs recorded as construction in progress and equipment to be inspected. For significant unrecognized contractual commitments related to the acquisition of property, plant, and equipment, please refer to Note (9)(b).

As of December 31, 2025 and 2024 the property, plant and equipment of the Group were not pledged as collateral for its loan.

(g) Right-of-use assets

The Group leases assets, including office, plants and warehouses. Information about leases for which the Group as a lessee was presented below:

Cost: Balance at January 1, 2025 Additions Effect of changes in foreign exchange rates Balance at December 31, 2025 Balance at January 1, 2024 Additions Reductions Effect of changes in foreign exchange rates Balance at December 31, 2024	Land $ 1,968,728 28,711 (94,137) $ 1,903,302 $ 1,842,485 16,191 - 110,052 $ 1,968,728	Buildings 99,106 9,068 (2,022) 106,152 92,511 58,555 (57,072) 5,112 99,106	Machinery equipment - - - - 15,240 - (15,965) 725 -	Other equipment 2,609 - (108) 2,501 2,443 - - 166 2,609	Total 2,070,443 37,779 (96,267)
					2,011,955
					1,952,679 74,746 (73,037) 116,055
					2,070,443

(Continued)

33

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

Accumulated depreciation and impairment losses: Balance at January 1, 2025 Depreciation Effect of changes in foreign exchange rates Balance at December 31, 2025 Balance at January 1, 2024 Depreciation Reductions Effect of changes in foreign exchange rates Balance at December 31, 2024 Carrying amount: Balance at December 31, 2025 Balance at January 1, 2024 Balance at December 31, 2024	Land $ 278,564 49,033 (11,166) $ 316,431 $ 215,441 49,204 - 13,919 $ 278,564 $ 1,586,871 $ 1,627,044 $ 1,690,164	Buildings 21,625 31,707 175 53,507 44,302 32,289 (57,072) 2,106 21,625 52,645 48,209 77,481	Machinery equipment - - - - 8,422 1,891 (10,714) 401 - - 6,818 -	Other equipment 1,793 388 (71) 2,110 1,297 400 - 96 1,793 391 1,146 816	Total 301,982 81,128 (11,062)
					372,048
					269,462 83,784 (67,786) 16,522
					301,982
					1,639,907
					1,683,217
					1,768,461

(h) Investment property

The cost, depreciation, and impairment of the Investment property of the Group for the years ended December 31, 2025 and 2024 were as follows:

Cost: Balance at January 1, 2025 Disposal Effect of changes in foreign exchange rates Balance at December 31, 2025 Balance at January 1, 2024 Disposals Effect of changes in foreign exchange rates Balance at December 31, 2024 Accumulated depreciation and impairment losses: Balance at January 1, 2025 Disposal Effect of changes in foreign exchange rates Balance at December 31, 2025 Balance at January 1, 2024 Depreciation Disposal Effect of changes in foreign exchange rates Balance at December 31, 2024	Owned property Land Buildings $ 6,858 404,980 - (394,090) - (10,890) $ 6,858 - $ 16,017 406,284 (9,595) (22,396) 436 21,092 $ 6,858 404,980 $ - 355,110 - (345,561) - (9,549) $ - - $ - 352,152 - 57 - (14,069) - 16,970 $ - 355,110	Total 411,838 (394,090) (10,890) 6,858 422,301 (31,991) 21,528 411,838 355,110 (345,561) (9,549) - 352,152 57 (14,069) 16,970 355,110
	Land $ 6,858 - - $ 6,858 $ 16,017 (9,595) 436 $ 6,858 $ - - - $ - $ - - - - $ -

(Continued)

34

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

Carrying amount: Balance at December 31, 2025 Balance at January 1, 2024 Balance at December 31, 2024 Fair value: Balance at December 31, 2025 Balance at December 31, 2024	Owned property Land Buildings Total $ 6,858 - 6,858 $ 16,017 54,132 70,149 $ 6,858 49,870 56,728 $ 37,269 $ 513,186	Total 6,858
	Land $ 6,858 $ 16,017 $ 6,858
		70,149
		56,728

In April and September 2025, the Group signed agreements to sell Yuanhong City’s real estate, the total sale price was $343,512 thousand, and $294,983 thousand was recognized as gain on disposal of assets.

The Group signed a sales agreement in March 2024 to sell Eagle Crest, an American real estate. The sale price was $42,817 thousand, and the sale has been completed in the month when the sales agreement was signed, and $24,895 thousand was recognized as gain on disposal of assets.

As of December 31, 2025 and 2024, the Investment property of the Group was not pledged as collateral for its loans.

(i) Intangible assets

The cost, amortization and impairment of the intangible assets of the Group for the years ended December 31, 2025 and 2024 were as follows:

Costs Balance at January 1, 2025 Additions Disposal / Obsolescence Effect of changes in foreign exchange rates Balance at December 31, 2025	Goodwill $ 439,101 - - (5,256) $ 433,845	Computer software 449,680 85,116 (47,306) (14,394) 473,096	Total 888,781 85,116 (47,306) (19,650) 906,941

(Continued)

35

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

Balance at January 1, 2024 Additions Disposal / Obsolescence Effect of changes in foreign exchange rates Balance at December 31, 2024 Accumulated amortization and impairment losses Balance at January 1, 2025 Amortization Disposal / Obsolescence Effect of changes in foreign exchange rates Balance at December 31, 2025 Balance at January 1, 2024 Amortization Disposal / Obsolescence Effect of changes in foreign exchange rates Balance at December 31, 2024 Carrying amounts: Balance at December 31, 2025 Balance at January 1, 2024 Balance at December 31, 2024	Goodwill $ 431,028 - - 8,073 $ 439,101 $ 122,967 - - (4,992) $ 117,975 $ 115,304 - - 7,663 $ 122,967 $ 315,870 $ 315,724 $ 316,134	Computer software 364,866 106,646 (40,204) 18,372 449,680 306,362 82,144 (46,706) (10,323) 331,477 256,892 75,958 (40,204) 13,716 306,362 141,619 107,974 143,318	Total 795,894 106,646 (40,204) 26,445
			888,781
			429,329 82,144 (46,706) (15,315)
			449,452
			372,196 75,958 (40,204) 21,379
			429,329
			457,489
			423,698
			459,452

The amortization of intangible assets and their impairment losses are included in the statement of comprehensive income:

Cost of sales Operating expenses Total	For the years ended December 31	For the years ended December 31
	2025 $ 14,087 68,057 $ 82,144	2024
		8,255 67,703
		75,958

The Group determined whether an impairment loss of goodwill shall be recognized based on historical experience and actual operating results. As of December 31, 2025 and 2024, no impairment loss was recognized.

(Continued)

36

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

(j) Short-term borrowings

The short-term borrowings were summarized as follows:

Unsecured bank loans Range of interest rates	December 31, 2025 $ 2,697,941 1.70%~4.60%	December 31, 2024
		2,983,008
		1.70%~6.50%

(k) Long-term borrowings

The details were as follows:

Unsecured bank loans Other long-term borrowings Less: current portion Total Unsecured bank loans Other long-term borrowings Less: current portion Total (l) Lease liabilities		December 31, 2025 Interest Rate Period Amount 1.88% 2027 $ 1,500,000 4.55%~4.75% 2027 1,567,431 0.10% 2026 68,001 3,135,432 (68,001) $ 3,067,431 December 31, 2024 Interest Rate Period Amount 1.95% 2026 $ 1,500,000 5.40%~5.44% 2026 1,830,869 0.10% 2026 66,794 3,397,663 - $ 3,397,663
	Currency	Interest Rate
	TWD USD INR
	Currency	Interest Rate
	TWD USD INR	1.95% 5.40%~5.44% 0.10%

The Group lease liabilities were as follows:

Current Non-current For the maturities analysis, please refer to Note (6)(t).	December 31, 2025 $ 38,559 $ 554,172	December 31, 2024
		39,408
		577,463

(Continued)

37

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

The amounts recognized in profit or loss were as follows:

Interest on lease liabilities	For the years ended December 31	For the years ended December 31
	2025 $ 53,585	2024
		52,582

The amounts recognized in the statement of cash flows by the Group were as follows:

Total cash outflow for leases	For the years ended December 31	For the years ended December 31
	2025 $ 90,566	2024
		90,322

• (i) Real estate leases

The Group leases land and buildings for its office, factory and warehouse. The leases of office space typically run for a period of 1 to 99 years. Some leases include an option to renew the lease term for the same duration at the end of the original contractual period.

(ii) Other leases

The Group leased photocopiers with lease terms of eight years.

(m) Employee benefits

(i) Defined benefit plans

Reconciliation of defined benefit obligation at present value and plan asset at fair value is as follows:

Present value of defined benefit obligation Fair value of plan assets Net defined benefit assets	December 31, 2025 $ 5,644,364 (1,999,138) $ 3,645,226	December 31, 2024 5,875,212 (1,940,030) 3,935,182

The Company makes defined benefit plan contributions to the pension fund account with Bank of Taiwan that provides pensions for employees upon retirement. Retired employee under the plans (covered by the Labor Standards Law) will be entitled to receive retirement benefits based on years of service and average monthly salary for the six months prior to retirement.

The employees of subsidiaries in Indonesia, India, and Vietnam are entitled to retirement benefit under the Group’s defined benefit plan, for which actuarial valuation is conducted in accordance with the local labor laws and regulations.

(Continued)

38

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

• 1) Composition of plan assets

The Company allocates pension funds in accordance with the Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund, and such funds are managed by the Bureau of Labor Funds, Ministry of Labor. With regard to the utilization of the funds, minimum earnings shall be no less than the earnings attainable from two-year time deposits with interest rates offered by local banks

The Company’ s Bank of Taiwan pension reserve account balance had amounted to $1,999,138 thousand as of December 31, 2025. For information on the utilization of the labor pension fund assets, including the asset allocation and yield of the fund, please refer to the website of the Bureau of Labor Funds, Ministry of Labor.

• 2) Movements in present value of the defined benefit obligations

The movements in present value of defined benefit obligations for the Group were as follows:

Defined benefit obligation on January 1 Current service cost and interest cost Remeasurement loss (gain): －Actuarial gain arising from experience －Actuarial gain arising from financial assumptions Benefits paid Effect of movements in exchange rates Defined benefit obligations on December 31	For the years ended December 31 2025 2024 $ 5,875,212 6,059,161 544,279 636,224 (13,192) (212,083) (120,754) (337,259) (358,758) (341,441) (282,423) 70,610 $ 5,644,364 5,875,212
	2025 $ 5,875,212 544,279 (13,192) (120,754) (358,758) (282,423) $ 5,644,364

• 3) Movements of defined benefit plan assets

The movements in the present value of the defined benefit plan assets for the Group were as follows:

Fair value of plan assets on January 1 Interest income Remeasurement gain (loss) －Return on plan assets excluding interest income Contributions paid by the employer Benefits paid Fair value of plan assets on December 31	For the years ended December 31 2025 2024 $ 1,940,030 1,832,248 32,947 24,430 133,857 166,881 18,981 19,550 (126,677) (103,079) $ 1,999,138 1,940,030
	2025 $ 1,940,030 32,947 133,857 18,981 (126,677) $ 1,999,138

(Continued)

39

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

• 4) Expenses recognized in profit or loss

The expenses recognized in profit or loss for the Group were as follows:

Current service costs Net interest of net defined benefit liabilities obligations Operating costs Selling and Administration expenses Research and development expenses	For the years ended December 31	For the years ended December 31
	2025 $ 330,383 180,949 $ 511,332 $ 428,991 73,023 9,318 $ 511,332	2024
		412,053 199,741
		611,794
		514,518 84,804 12,472
		611,794

• 5) Actuarial assumptions

The principal actuarial assumptions on the reporting date were as follows:

Discount rate Future salary increases rate	December 31, 2025 December 31, 2024 1.63%~6.70% 1.75%~7.00% 4.00%~10.00% 5.00%~10.00%

The contribution to be made by the Group to the defined benefit plans within one year after the reporting date is $131,186 thousand.

The weighted-average lifetime of the defined benefit plans is 6.16 to 10.50 years.

• 6) Sensitivity analysis

If the actuarial assumptions had changed, the impact on the present value of the defined benefit obligation shall be as follows:

December 31, 2025 Discount rate Future salary increasing rate December 31, 2024 Discount rate Future salary increasing rate	Influences of defined benefit obligations
	0.25% Increased 0.25% Decreased $ (97,454) 100,612 99,001 (96,520) $ (105,394) 108,780 106,628 (103,954)

(Continued)

40

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

Reasonably possible changes on the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown above. The method used in the sensitivity analysis is consistent with the calculation of pension liabilities in the balance sheets.

There is no change in the method and assumptions used in the preparation of sensitivity analysis for 2025 and 2024.

(ii) Defined contribution plans

The Company allocates 6% of each employee’s monthly wages to the labor pension personal account at the Bureau of Labor Insurance in accordance with the provisions of the Labor Pension Act. Under these defined contribution plans, the Company allocates a fixed amount to the Bureau of Labor Insurance without additional legal or constructive obligation.

The employees of the Group’s subsidiaries in China, India and Vietnamese are members of their respective government pension plans, to which those subsidiaries must allocate a specific proportion of the salary, so as to provide funding for their respective plans, while the Group’s only obligation is to contribute a specific amount to these government pension plans.

The pension costs incurred from the contributions to the pension plans amounted to $983,645 thousand and $1,072,743 thousand for the years ended December 31, 2025 and 2024, respectively.

(n) Income taxes

(i) Income tax expense

The components of income tax in the years 2025 and 2024 were as follows:

Current income tax expense: Current period Adjustment for prior years Deferred income tax expense: Origination and reversal of temporary differences Adjustment for prior years Income tax expense	For the years ended December 31 2025 2024 $ 2,433,429 2,384,970 97,943 (39,208) 2,531,372 2,345,762 (92,039) (17,791) 54,483 (11,482) (37,556) (29,273) $ 2,493,816 2,316,489
	2025 $ 2,433,429 97,943 2,531,372 (92,039) 54,483 (37,556) $ 2,493,816

(Continued)

41

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

The amount of income tax recognized in other comprehensive income (loss) for 2025 and 2024 were as follows:

were as follows:
	For	the years ended		December 31
		2025		2024
Items that will not be reclassified subsequently to profit
or loss:
Remeasurement from defined benefit plans	$	(48,798)		(146,093)
Items that may be reclassified subsequently to profit or
loss:
Share of other comprehensive income (loss) of
associates and joint ventures accounted for using
equity method, components of other comprehensive
income	$		4,516	(6,332)

Reconciliation of income tax and profit before tax for 2025 and 2024 was as follows:

Profit before income tax Income tax using each entity’s domestic tax rate Others income tax adjustments Tax exempt income Tax incentives Tax credit for foreign income Recognition of previously unrecognized tax losses Change in unrecognized temporary differences Current-year losses for which no deferred tax asset was recognised Derecognition of deferred tax assets Adjustment to prior periods' income tax Tax on dividend income Additional tax on undistributed earnings Others Income tax expenses

For the years ended December 31 2025 2024 $ 7,918,441 8,582,046 $ 2,401,642 2,553,523 85,514 119,574 (34,417) (65,888) (290,226) (265,994) (34,030) (56,702) (53,287) (11,482) (1,397) (2,143) 69,199 10,853 107,770 - 97,943 (39,208) 32,931 57,727 94,507 - 17,667 16,229 $ 2,493,816 2,316,489

2025 $ 7,918,441 $ 2,401,642 85,514 (34,417) (290,226) (34,030) (53,287) (1,397) 69,199 107,770 97,943 32,931 94,507 17,667 $ 2,493,816

(Continued)

42

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Deferred tax assets and liabilities

• 1) Unrecognized deferred tax assets

Deferred tax assets have not been recognized in respect of the following items:

Tax losses	December 31, 2025 $ 27,069	December 31, 2024
		25,213

The tax authorities of subsidiaries allow net losses to offset taxable income for local tax reporting purposes.

Deferred tax assets have not been recognized in respect of these items because it is not probable that future taxable profit will be available against which the Group can utilize the benefits therefrom.

As of December 31, 2025, the information of the Group’s unused tax losses for which no deferred tax assets were recognized are as follows:

Year of loss 2020 2021 2022 2023 2024 2025	Unused amount Year of expiry $ 874 2025 1,484 2026 10,486 2027 89,814 2028 185,923 2029 5,839 2030

• 2) Recognized deferred tax assets and liabilities

Changes in the amount of deferred tax assets and liabilities during 2025 and 2024 were as follows:

Deferred Tax Liabilities: Balance on January 1, 2025 Debit (credit) on income statement Debit (credit) on other comprehensive income Effect in exchange rate Balance on December 31, 2025	Gains on foreign investment $ 3,029,606 (33,991) - - $ 2,995,615	Others 612,298 33,538 (4,516) (24,193) 617,127	Total 3,641,904 (453) (4,516) (24,193) 3,612,742

(Continued)

43

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

Balance on January 1, 2024 Debit (credit) on income statement Debit (credit) on other comprehensive income Effect in exchange rate Balance on December 31, 2024 Deferred Tax Assets: Balance on January 1, 2025 (Debit) credit on income statement (Debit) credit on other comprehensive income Effect in exchange rate Balance on December 31, 2025 Balance on January 1, 2024 (Debit) credit on income statement (Debit) credit on other comprehensive income Effect in exchange rate Balance on December 31, 2024	Gains on foreign investment $ 2,979,188 50,418 - - $ 3,029,606 Defined Benefit Plans $ 594,462 386 (48,798) (20,380) $ 525,670 $ 700,055 5,954 (146,093) 34,546 $ 594,462	Others 581,665 (1,009) 6,332 25,310 612,298 Others 1,220,132 36,717 - (82,875) 1,173,974 1,100,808 72,728 - 46,596 1,220,132	Total 3,560,853 49,409 6,332 25,310 3,641,904 Total 1,814,594 37,103 (48,798) (103,255) 1,699,644 1,800,863 78,682 (146,093) 81,142 1,814,594

As of December 31, 2025, the information of the Group’s unused tax losses for which deferred tax assets were recognized are as follows:

Year of loss 2022 2023 2024 2025	Unused amount Year of expiry $ 3,994 Without deadline 71,753 2028 and without deadline 483,373 2029 91,852 2030

(iii) Income Tax approval

The Company’s tax returns for the years up to 2023 have been assessed by the R.O.C. tax authorities.

(Continued)

44

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

For the years from 2011 to 2021, some of the Group’s subsidiaries were involved in disputes with tax authorities over tax returns, and the amended amounts of additional tax were approved for each of the approved years. Each subsidiary has filed an administrative relief application, which has been under review by the authorities concerned.

(iv) Global Minimum Tax (GMT)

The Group has applied a temporary mandatory relief from deferred tax accounting for the impacts of the top-up tax and accounts for it as a current tax when it is incurred.

The Group is subject to the global minimum top-up tax under the Pillar Two tax legislation since the Income Inclusion Rule (IIR) and the domestic minimum top-up tax have been effective and implemented in Vietnam (where the subsidiaries operated from January 1, 2024), as well as in Indonesia, Singapore and Hong Kong (where the subsidiaries operated from January 1, 2025). Based on the Group’ s assessment, its subsidiaries operating in Vietnam, Indonesia, Singapore, and Hong Kong meet the criteria for one of the transitional safe harbors under the Pillar Two framework, including the Simplified ETR Test (effective tax rate exceeding 16%), the Routine Profits Test, or the De Minimis Test. Accordingly, the Group did not recognize any current income tax impact related to Pillar Two as of December 31, 2025.

For the subsidiaries operating in jurisdictions where the Pillar Two tax legislation has not yet been enacted, the Group will continue to monitor the date when the legislation takes effect and assess the income tax impacts.

(v) Profit-seeking enterprise income tax returns

The Group’ s income tax returns must be filed individually by each entity instead of on a consolidated basis; consequently, the Group’s income taxes were calculated using the local tax rate applicable to each entity.

(o) Capital and other equity

As of December 31, 2025 and 2024, the Company’s total rated share capital amount to $12,000,000 thousand, with a par value of $10, and the number of shares all was 1,200,000 thousand ordinary shares. The aforementioned aggregate amount of rated equity is all ordinary shares. The issued shares are 987,483 thousand ordinary shares, all the consideration for issued shares has been received.

(Continued)

45

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

(i) Capital surplus

The details of capital surplus were as follows:

The details of capital surplus were as follows:
December 31, 2025 Treasury share transactions $ 4,143 Gain on disposal of assets 32,980 Capital surplus-premium from merger 2,160 Donation from shareholders 6,458 Issued shares of subsidiaries not recognized in proportion to shareholding 1,246 Difference between consideration and carring amount of subsidiaries acquired or disposed 183 $ 47,170	December 31, 2024
	4,143 32,980 2,160 5,768 3,851 183
	49,085

According to the R.O.C. Company Act, capital surplus can only be used to offset a deficit, and only the realized capital surplus can be used to increase the common stock or be distributed as cash dividends. The aforementioned realized capital surplus includes capital surplus resulting from premium on issuance of capital stock and earnings from donated assets received. According to the Regulations Governing the Offering and Issuance of Securities by Securities Issuers, capital increases by transferring capital surplus in excess of par value should not exceed 10% of the total common stock outstanding.

(ii) Retained earnings

The Company’ s Articles of Incorporation stipulate that 10% of annual net earnings, after deducting accumulated deficit, shall be set aside as a legal reserve and a special reserve shall be appropriated or reserved pursuant to laws or regulations. A portion or all of the remainder, together with the unappropriated retained earnings for the prior year, may be further distributed as dividends.

Since the Company is experiencing stable growth, in response to its long term financial planning, as well as its objective to achieve stable development and sustainable operation, it is necessary for the Board of Directors to propose a dividend distribution plan based on budget and capital demand of the following year, and have it resolved at the shareholders’ meeting. Dividend distribution shall account for no less than 50% of distributable earnings, and stock dividends shall not exceed 80% of the distribution.

1) Legal reserve

When a company incurs no loss, it may, pursuant to a resolution by a shareholders’ meeting, distribute its legal reserve by issuing new shares or by distributing cash, and only the portion of legal reserve which exceeds 25% of capital may be distributed.

(Continued)

46

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

2) Special reserve

In accordance with the FSC, a portion of current period earnings and undistributed prior period earnings shall be reclassified as special earnings reserve during earnings distribution. The amount to be reclassified should equal the current-period total net reduction of other shareholders’ equity. Similarly, a portion of undistributed prior-period earnings shall be reclassified as special earnings reserve (and does not qualify for earnings distribution) to account for cumulative changes to other shareholders’ equity pertaining to prior periods. However, if the Company has set aside a special earnings reserve pursuant to the provisions of the preceding paragraph, it shall make a supplement to the difference between the stated reduction amount and the net of other equity. Amounts of subsequent reversals pertaining to the net reduction of other shareholders' equity shall qualify for additional distributions.

3) Earnings distribution

On May 28, 2025, and May 31, 2024, the Company's shareholder's meetings resolved to distribute the 2024 and 2023 earnings, respectively. These earnings were appropriated as follows:

Dividends distributed to ordinary shareholders Cash	2024 Amount (dollar) Total $ 5.10 5,030,162	2023	2023
	Amount (dollar) $ 5.10	Amount (dollar) 4.30	Total
			4,246,176

On March 10, 2026, the Company's Board of Directors proposed to distribute the 2025 earnings as follows:

Dividends distributed to ordinary shareholders Cash	For the years ended December 31	For the years ended December 31
	2025
	Amount (dollar) $ 4.10	Total
		4,048,680

(iii) Other equity interest after tax

Balance at January 1, 2025 Exchange differences on translation of foreign financial statement Balance at December 31, 2025	Exchange differences on translation of foreign financial statement
	$ 360,006 (1,254,899) $ (894,893)

(Continued)

47

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

Balance at January 1, 2024 Exchange differences on translation of foreign financial statement Balance at December 31, 2024	Exchange differences on translation of foreign financial statement $ (1,127,303) 1,487,309 $ 360,006

(iv) Non-controlling interests (NCIs)

Balance at January 1 Shares attributed to non-controlling interests Net profit Exchange differences on translation of foreign financial statements Remeasurement from defined benefit plans Changes in ownership interests in subsidiaries Earnings distribution to non-controlling interests Balance at December 31	For the years ended December 31 2025 2024 $ 1,988,831 1,894,583 388,583 396,019 (70,516) 105,444 822 (1,187) 2,605 9,042 (289,744) (415,070) $ 2,020,581 1,988,831
	2025 $ 1,988,831 388,583 (70,516) 822 2,605 (289,744) $ 2,020,581

• (p) Earnings per share

For the years ended December 31, 2025 and 2024, the Company’s basic earnings per share were calculated as follows:

Basic earnings per share Net profit attributable to ordinary shareholders of the Company Weighted average number of ordinary shares Basic earnings per share (dollars)	For the years ended December 31	For the years ended December 31
	2025 $ 5,036,042 987,483 $ 5.10	2024
		5,869,538
		987,483
		5.94

The Company did not intend to calculate diluted earnings per share on the assumption that, the compensation to employees and directors for the year ended December 31, 2025, was distributed in cash using the same method for the preceding three years.

(Continued)

48

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

• (q) Revenue from contracts with customer

• (i) Disaggregation of revenue

Primary geographical markets Singapore America Switzerland Mainland China Mexico Other countries Major products/services lines Manufacturing and sale of footwear Others Primary geographical markets Singapore America Switzerland Mainland China Mexico Other countries Major products/services lines Manufacturing and sale of footwear Others	For the years ended December 31, 2025	For the years ended December 31, 2025	For the years ended December 31, 2025
	Segments of footwear manufacturing and sales Other Segments Total $ 61,014,934 1,600,726 62,615,660 6,348,327 1,336,098 7,684,425 4,558,424 185,870 4,744,294 2,849,291 9,523 2,858,814 2,219,972 52,895 2,272,867 2,329,469 1,006,494 3,335,963 $ 79,320,417 4,191,606 83,512,023 $ 79,320,417 - 79,320,417 - 4,191,606 4,191,606 $ 79,320,417 4,191,606 83,512,023 For the years ended December 31, 2024		Total
			62,615,660 7,684,425 4,744,294 2,858,814 2,272,867 3,335,963
			83,512,023
			79,320,417 4,191,606
			83,512,023
		Other Segments 1,964,307 1,133,494 601 10,910 71,427 936,511 4,117,250 - 4,117,250 4,117,250	Total
			67,524,888 8,239,349 3,782,972 3,118,286 2,105,855 2,716,120
			87,487,470
			83,370,220 4,117,250
			87,487,470

(Continued)

49

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Contract balances

Accounts receivable Less: allowance for credit loss Total Contract liabilities	December 31, 2025 $ 8,468,314 - $ 8,468,314 $ 1,098	December 31, 2024 8,118,995 - 8,118,995 1,141	January 1, 2024 8,146,737 (7,972) 8,138,765 999

Please refer to Note (6)(b) for the disclosure of accounts receivable and impairment.

The amount of revenue recognized for the years ended December 31, 2025 and 2024 that was included in the contract liability balance at the beginning of the period were $1,141 thousand and $999 thousand, respectively.

(r) Compensation to employees and directors

On May 28, 2025, the Company’ s shareholders resolved to amend the Articles of Incorporation. Under the revised Articles, if the Company reports profit for the year, the profit should first be used to offset against any accumulated deficit. Thereafter, a minimum of 2.0% of the remainder shall be allocated as employee compensation (of which no less than 30% shall be allocated to those basedlevel employees), and a maximum of 1.8% as director compensation.

Prior to the amendment, the Articles stipulated that if there is profit for the year, then, the profit should first be used to offset against any accumulated deficit. Thereafter, a minimum of 2.0% shall be allocated as employee compensation and a maximum of 1.8% as director compensation.

The Company estimated its employee compensation at respectively $416,326 thousand and $180,000 thousand for the years ended December 31, 2025 and 2024, and estimated its director compensation at $88,400 thousand and $105,300 thousand for years ended December 31, 2025 and 2024, respectively. The estimated amounts, recognized as operating costs or expenses, were based on net profit before tax of for the respective periods, multiplied by the percentage of compensation to employees and directors, as specified in the Articles of Incorporation. If the actual amounts differ from the estimated amounts, the differences shall be accounted for as changes in accounting estimates and recognized as profit or loss in the next year.

There was no difference between the amounts approved by Board of Directors and those recognized in the parent-company-only financial statements for the years ended December 31, 2025 and 2024. The information is available on the Market Observation Post System website.

(Continued)

50

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

(s) Non-operating income and expenses

(i) Interest income

The details of the Group's interest income for the years ended December 31, 2025 and 2024 were as follows:

were as follows:
Interest income from bank deposits	For the years ended December 31
	2025 $ 55,303	2024
		75,927

(ii) Other income

The details of the Group's other income for the years ended December 31, 2025 and 2024 were as follows:

Rent income Government subsidy Other income	For the years ended December 31	For the years ended December 31
	2025 $ 15,128 44,476 366,943 $ 426,547	2024
		18,827 131,206 314,338
		464,371

• (iii) Other gains and losses

The details of the Group's other gains and losses for the years ended December 31, 2025 and 2024 were as follows:

Foreign exchange (losses) gains Losses on disposal of property, plant and equipment Gain on disposal of investment property Reversal (porvision) of impairment loss Loss from lease modification Others	For the years ended December 31 2025 2024 $ (87,554) 835,572 (3,508) (32,851) 294,983 24,895 2,464 (33,754) - (923) (135,982) (17,358) $ 70,403 775,581
	2025 $ (87,554) (3,508) 294,983 2,464 - (135,982) $ 70,403

(iv) Financial costs

The details of the Group's financial costs for the years ended December 31, 2025 and 2024 were as follows:

Interest expense	For the years ended December 31	For the years ended December 31
	2025 $ 249,818	2024
		283,973

(Continued)

51

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

• (t) Financial instruments

• (i) Credit risks

  • 1) Credit risk exposure

The carrying amounts of financial assets represented the maximum credit risk exposure of the Group.

• 2) The concentration of credit risk

On December 31, 2025 and 2024, 66% and 69% of the Group’s total receivables were concentrated within a single overseas customer.

• (ii) Liquidity risk

The following are the contractual maturities of financial liabilities of the Group, including estimated interest payments and excluding the impact of netting arrangements:

December 31, 2025 Non-derivative financial liabilities Notes and accounts payable Other payables Unsecured bank loans Other long-term borrowings Lease liabilities December 31, 2024 Non-derivative financial liabilities Notes and accounts payable Other payables Unsecured bank loans Other long-term borrowings Lease liabilities	Carrying amount $ 3,998,596 4,827,917 5,765,372 68,001 592,731 $ 15,252,617 $ 4,131,129 5,630,757 6,313,877 66,794 616,871 $ 16,759,428	Contractual cash flows 3,998,596 4,827,917 5,936,499 68,001 1,422,278 16,253,291 4,131,129 5,630,757 6,543,413 66,879 1,487,446 17,859,624	Less than 6 months 3,997,216 4,566,666 2,742,722 68,001 58,381 11,432,986 4,129,971 5,213,604 2,709,433 33 59,875 12,112,916	6 to 12 months 1,380 261,251 68,910 - 33,577 365,118 1,158 417,153 427,624 34 33,180 879,149	1 to 2 years - - 3,124,867 - 77,202 3,202,069 - - 3,406,356 66,812 88,159 3,561,327	2 to 5 years - - - - 179,039 179,039 - - - - 187,155 187,155	More than 5 years
							- - - - 1,074,079
							1,074,079
							- - - - 1,119,077
							1,119,077

The Group does not expect the cash flows included in the maturity analysis to occur significantly earlier or at significantly different amounts.

(Continued)

52

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

• (iii) Currency risks

• 1) Exposure to currency risks

December 31, 2025 Foreign currency (In thousands) Exchange rate TWD Financial assets Monetary items USD $ 269,769 USD：TWD 31.380 8,465,347 19,136 USD：CNY 7.0288 600,481 1,027 USD：INR 89.8300 32,218 VND 776,060,430 VND：USD 0.00004 931,273 INR 2,743,066 INR：USD 0.0111 958,153 IDR 21,416,772 IDR：USD 0.0001 40,692 Non-monetary items USD 46,048 USD：TWD 31.380 1,444,980 Financial liabilities Monetary items USD 41,298 USD：TWD 31.380 1,295,924 8,227 USD：CNY 7.0288 258,160 151 USD：VND 26,227 4,752 VND 1,881,484,612 VND：USD 0.00004 2,257,782 INR 2,791,851 INR：USD 0.0111 975,193 IDR 1,111,067,063 IDR：USD 0.0001 2,111,027 December 31, 2024 Foreign currency (In thousands) Exchange rate TWD Financial assets Monetary items USD $ 273,437 USD：TWD 32.735 8,950,954 40,115 USD：CNY 7.1844 1,313,177 86 USD：VND 25,401 2,809 VND 708,229,589 VND：USD 0.00004 920,698 INR 2,159,483 INR：USD 0.0117 826,868 IDR 244,095,967 IDR：USD 0.0001 488,192 Non-monetary items USD 40,208 USD：TWD 32.735 1,316,221		December 31, 2025

(Continued)

53

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

Financial liabilities Monetary items USD VND INR IDR		December 31, 2024
	Foreign currency (In thousands) 31,523 12,176 39 1,990,486,088 2,787,297 1,100,833,975	Exchange rate TWD USD：TWD 32.735 1,031,920 USD：CNY 7.1844 398,578 USD：VND 25,401 1,284 VND：USD 0.00004 2,587,632 INR：USD 0.0117 1,067,256 IDR：USD 0.0001 2,201,668

2) Sensitivity analysis

The Group’s exposure to foreign currency risk arises from the translation of the foreign currency exchange gains and losses on cash and cash equivalents, accounts receivable, other receivables, loans and borrowings, accounts payable and other payables that are denominated in foreign currency. An appreciation or depreciation of 5% of the TWD against the USD, VND, INR and IDR for the years ended December 31, 2025 and 2024, would have increased the net profit before tax by $206,266 thousand and $260,718 thousand, respectively. Performed based on the same basis, the analysis of both periods assumed that all other variables remained constant.

3) Foreign exchange gain and loss on monetary items

Since the Group has many kinds of functional currency, the information on foreign exchange gain on monetary items is disclosed by total amount. For the years ended December 31, 2025 and 2024, foreign exchange (loss) gain (including realized and unrealized portions) amounted to $(87,554) thousand and $835,572 thousand, respectively.

(iv) Interest rate analysis

Please refer to the notes on liquidity risk management and interest rate exposure of the Group’s financial assets and liabilities.

The following sensitivity analysis is based on the risk exposure to interest rate on the derivative and non-derivative financial instruments on the reporting date. For variable rate instruments, the sensitivity analysis assumes the variable rate liabilities are outstanding for the whole year at the reporting date. The change in interest rate reported to the Group’ s key management was based on 50 basis points, which is consistent with the assessment made by the key management in respect of the possible change in interest rate.

If the interest rate increases or decreases by 50 basis points, with all other variable factors remaining constant, the Group’s net profit before tax would have decreased or increased by $21,062 thousand and $20,463 thousand for the years ended December 31, 2025 and 2024, respectively. This was mainly due to the Group’s deposits and borrowings at variable rates.

(Continued)

54

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

• (v) Fair value information

• 1) Financial instruments not measured at fair value

The Group considered that the carrying amounts of financial assets and financial liabilities measured at amortized cost approximate their fair values.

• 2) Financial instruments measured at fair value

The fair value of financial assets at fair value through profit or loss is measured on a recurring basis. The table below analyzes financial instruments that are measured at fair value subsequent to initial recognition, grouped into Levels 1 to 3 based on the degree to which the fair value is observable. The different levels have been defined as follows:

• a) Level 1: quoted prices (unadjusted) in active markets for identified assets or liabilities.

• b) Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

• c) Level 3: inputs for the assets or liability that are not based on observable market data (unobservable inputs).

• (vi) Valuation techniques for financial instruments measured at fair value

If the fair value of the unlisted stocks held the Group is mainly estimated using the discounted cash flow model method, with reference to the Group’ s future growth rate, net worth, and operation.

• (u) Financial risk management

• (i) Overview

The Group had exposures to the following risks from its financial instruments:

• 1) credit risk

• 2) liquidity risk

• 3) market risk

The following likewise discusses the Group’s objectives, policies and processes for measuring and managing the above mentioned risk. For more disclosures about the quantitative effects of these risk exposures, please refer to the respective notes in the accompanying financial statement.

• (ii) Risk management framework

The Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk management framework. The internal auditors perform regular reviews by taking risk management control procedures and report to the Board of Directors.

(Continued)

55

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

The Group’s risk management policies are established to identify and analyze the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s activities. The Group, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Group Audit Committee oversees how management monitors compliance with the Group’ s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Group. The Group Audit Committee is assisted in its oversight role by Internal Audit. Internal Audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.

(iii) Credit risk

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Group’s receivables from customers and investments in debt securities.

• 1) Trade and other receivables

Exposure to credit risk of the Group is mainly affected by the condition of each customer. However, the management also considers the demographics of the Group’ s customer base, including the default risk of the industry and the country in which customers operate, as these factors may have an influence on credit risk.

Management has established a credit policy, under which when available, and, in some cases, each new customer is analyzed individually for credit rating before the Group’s standard payment and delivery terms and conditions are offered. The Group’ s review includes external ratings bank references. Purchase limits are established for each customer, and these limits are reviewed periodically. Customers that fail to meet the Group’ s benchmark credit rating may transact with the Group only on a prepayment basis.

In monitoring the credit risk of the customers, the Group groups them according to the credit characteristics of the customers; for example, by whether they are primary or secondary customers, region, industry, age and maturity date of receivables, and previously existing financial difficulties. The Group’s accounts receivable were mainly due from Group's customers. Customers rated as high risk are classified as restricted customers and monitored, and those customers may transact with the Group only on a prepayment basis in the future.

The Group has established an allowance account for bad debts that represents its estimate of incurred losses in respect of trade receivables, other receivables, and investments. This allowance mainly comprises a specific loss component that relates to individually significant exposures, and a collective loss component established for groups of similar assets in respect of losses that have been incurred but not yet identified. This allowance for the loss component is determined based on historical payment statistics of similar financial assets.

(Continued)

56

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

2) Investment

The credit risk exposure for the bank deposits and other financial instruments are measured and monitored by the Group's finance department. The Group only deals with banks, other external parties, corporate organizations, government agencies and financial institutions with good credit rating. The Group does not expect any counterparty above fails to meet its obligations hence there is no significant credit risk arising from these counterparties.

• 3) Guarantees

As of December 31, 2025 and 2024, there was no guarantee outstanding.

(iv) Liquidity risk

Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group’ s approach to managing liquidity is to ensure, as far as possible, that it always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation.

The Group monitors the level of expected cash outflows on trade and other payables. This excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters. In addition, the total amount of unused credit facilities as of December 31, 2025 and 2024, amounted to $13,672,971 thousand and $13,798,013 thousand, respectively.

(v) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices, will affect the Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

1) Currency risk

The Group is exposed to currency risk on sales, purchases and borrowings that are denominated in a currency other than the respective functional currencies of the Group’s entities, primarily the New Taiwan Dollars (TWD), US Dollars (USD) and China Yuan (CNY). The currencies used in these transactions are denominated in TWD, USD, VND, INR, IDR and CNY.

The interest is denominated in the currency used in the borrowings. Borrowings were generally denominated in currencies that match with the cash flows generated by the underlying operations of the Group, primarily TWD, USD, VND, INR and CNY. This provided an economic hedge without derivatives being entered into, and therefore, hedge accounting was not applied in these circumstances.

(Continued)

57

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

In respect of other monetary assets and liabilities denominated in foreign currencies, the Group ensures that its net exposure is kept to an acceptable level by buying or selling foreign currencies at spot rates when necessary to address short term imbalances.

• 2) Interest rate risk

The Group’s risk exposure on to changes in interest rates is mainly attributable to shortterm and long-term loans at floating rates. Any change in interest rates will cause the effective interest rates of short-term and long-term loans to change and thus cause the future cash flows to fluctuate over time.

(v) Capital management

The Group meets its objectives for managing capital to safeguard the capacity to continue to operate, to continue to provide a return to shareholders and other related parties, and to maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Group may adjust the dividend payment to the shareholders, reduce the capital for redistribution to shareholders, issue new shares or sell assets to settle any liabilities.

The Group’s debt-to-equity ratios on the reporting dates were as follows:

Total liabilities Less: cash and cash equivalents Net debt Total equity Total capital Debt-to-equity ratio on period end	December 31, 2025 $ 24,865,916 (5,282,741) 19,583,175 27,825,074 $ 47,408,249 % 41.31	December 31, 2024 25,563,900 (5,140,543) 20,423,357 28,828,882 49,252,239 % 41.47

• (w) Investing and financing activities not affecting current cash flow

The Group's investing and financing activities which did not affect the current cash flow for the years ended December 31, 2025 and 2024.

Reconciliation of liabilities arising from financing activities was as follows:

January 1, 2025 Long-term borrowings $ 3,397,663 Short-term borrowings 2,983,008 Lease liabilities 616,871 Total liabilities from financing activities $ 6,997,542	Cash flows (186,262) (243,493) (36,981) (466,736)	Non-cash Foreign exchange movement (75,969) (41,574) (24,938) (142,481)	changes Others - - 37,779 37,779	December 31, 2025
				3,135,432 2,697,941 592,731
				6,426,104

(Continued)

58

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

January 1, 2024 Long-term borrowings $ 3,509,219 Short-term borrowings 2,250,109 Lease liabilities 547,619 Total liabilities from financing activities $ 6,306,947	Cash flows (249,776) 686,181 (37,740) 398,665	Non-cash Foreign exchange movement 138,220 46,718 36,574 221,512	changes Others - - 70,418 70,418	December 31, 2024
				3,397,663 2,983,008 616,871
				6,997,542

(7) Related-party transactions:

(a) Name of related parties and relationship

The followings are entities that had transactions with related party during the periods covered in the consolidated financial statements.

consolidated financial statements.
Name of related party	Relationship with the Group
Shoe Majesty Co., Ltd.	A joint venture under the Group's joint arrangement
Vietnam Shoe Majesty Co., Ltd.	〞
Hong Kong Shoe Majesty Trading Company	〞
Limited
PT Shoe Majesty Indonesia	〞
WANG LIOU, MEI-HUEI	Related party in substance

• (b) Significant transactions with related parties

• (i) Other revenue

The Group is a joint venture under the joint agreement	For the years ended December 31	For the years ended December 31
	2025 $ 9,885	2024
		10,046

• (ii) Receivables due from Related Parties

The receivables due from related parties of the Group were as follows:

Account item	Category of related party	December 31, 2025 December 31, 2024 $ 778 963	December 31, 2025 December 31, 2024 $ 778 963
Other receivables	The Group is a joint venture under the joint agreement		963

(Continued)

59

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

• (iii) Property transactions

Purchases of property, plant and equipment

To support the expansion of Feng Tay Plant Development Center, the Company purchased a parcel of land located in Douliu City, Yunlin County from a related party in May 2025, with the total contract amount of $249,140 thousand, and an additional related cost of $6,700 thousand. The acquisition price of the land was determined with reference to a valuation report issued by Elite Real Estate Appraisers Joint Firm.

(c) Key management personnel transactions

Key management personnel compensation comprised:

Short-term employee benefits Post-employment benefits	For the years ended December 31	For the years ended December 31
	2025 $ 297,227 5,522 $ 302,749	2024
		341,396 5,114
		346,510

(8) Pledged assets:

The book values of pledged assets were as follows:

Pledged assets	Object	December 31, 2025 $ 8,591 94,327 $ 102,918	December 31, 2024
Other current financial assets Other non-current financial assets	Customs deposit and lease deposit Customs deposit and lease deposit		956 103,172
			104,128

(9) Commitments and contingencies:

• (a) As of December 31, 2025 and 2024, the Group has issued promissory notes for short-term and longterm borrowings of $9,324,200 thousand and $9,946,150 thousand, respectively.

• (b) As of December 31, 2025 and 2024, the Group had payables in respect of important construction contracts, amounting to $978,206 thousand and $1,541,756 thousand, respectively.

(10) Losses Due to Major Disasters: None

(11) Subsequent Events: None

(Continued)

60

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

(12) Others:

• (a) A summary of current-period employee benefits, depreciation, and amortization, by function, is as follows:

follows:
By function By item	For the year ended December 31, 2025			For the year ended December 31, 2024
	Cost of Sale	Operating Expense	Total	Cost of Sale	Operating Expense	Total
Employee benefits Salary Labor and health insurance Pension Other employee benefits Depreciation Amortization	$ 18,645,767 2,019,563 1,161,993 1,433,007 2,054,247 14,087	6,406,520 588,920 332,984 473,121 942,838 68,057	25,052,287 2,608,483 1,494,977 1,906,128 2,997,085 82,144	19,558,031 2,235,281 1,330,007 2,465,287 2,145,381 8,254	6,827,514 599,596 354,530 694,694 948,394 67,704	26,385,545 2,834,877 1,684,537 3,159,981 3,093,775 75,958

(b) Seasonality of operation

The Group's operations are not affected by seasonal or cyclical factors.

(Continued)

61

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

(13) Other disclosures

• (a) Information on significant transactions

The followings is the information on significant transactions required by the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” for the Group for the year ended December 31, 2025:

• i. Loans to other parties: None

• ii. Guarantees and endorsements for other parties: None

• iii. Securities held as of December 31, 2025 (excluding investment in subsidiaries, associates and joint ventures): None

• iv. Related-party transactions for purchases and sales with amounts exceeding the lower of $100 million or 20% of the capital stock:

(In Thousands of New Taiwan Dollar)

Name of company	Related party	Nature of relationship		Transaction details	Transaction details		Transactions wit different from	h terms others	Notes/ Accounts receivable (payable)	Notes/ Accounts receivable (payable)	Note
			Purchase/ Sale	Amount	Percentage of total purchases/ sales	Payment terms	Unit price	Payment terms	Ending balance	Percentage of total notes/ accounts receivable (payable)
Feng Tay Enterprises Co., Ltd. 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞	PT Feng Tay Indonesia Enterprises 〞 India Tindivanam Footwear Private Limited 〞 Lotus Footwear Enterprises Private Limited (India Branch) 〞 East Wind Footwear Company Limited (India Branch) 〞 Fairway Enterprises Company Limited (India Branch) 〞 Fujian Lifeng Footwear Industrial Development Company Limited 〞 Fujian San Feng Footwear Company Limited 〞 Fujian Xiefeng Footwear Company Limited 〞 Fujian Great Hope Footwear Company Limited 〞 Suzhou Yufeng Plastics Technology Co., Ltd.	Parent and subsidiary 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞	Sale Purchase Sale Purchase Sale Purchase Sale Purchase Sale Purchase Sale Purchase Sale Purchase Sale Purchase Sale Purchase Sale	1,549,641 6,471,165 682,396 751,930 2,221,660 5,116,387 1,396,268 3,466,879 2,126,698 4,571,129 598,637 2,663,031 482,354 1,541,975 1,112,375 4,000,679 106,827 1,050,077 213,796	2% 9% 1% 1% 3% 7% 2% 5% 3% 6% 1% 4% 1% 2% 1% 5% - 1% -	90 days 20 days 90 days 10 days 90 days 30 days 60/90 days 30 days 30 days 30 days 15 days 15 days 90 days 15 days 15 days 15 days 15 days 60 days 15 days	Selling price of goods was determined through negotiations and there were no other transactions with non-related parties to compare with. 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞	- - - - - - - - - - - - - - - - - - -	295,622 (572,730) 733,504 (57,388) 637,746 (475,742) 404,775 (391,548) 271,427 (339,358) 36,428 (82,527) 63,930 (2,552) 50,916 (221,101) 4,046 (128,209) 41,076	3% (8%) 6% (1%) 6% (7%) 4% (5%) 2% (5%) - (1%) 1% - - (3%) - (2%) -	- - - - - - - - - - - - - - - - - -

62

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of company	Related party	Nature of relationship		Transaction details	Transaction details		Transactions wit different from	h terms others	Notes/ Accounts receivable (payable)	Notes/ Accounts receivable (payable)	Note
			Purchase/ Sale	Amount	Percentage of total purchases/ sales	Payment terms	Unit price	Payment terms	Ending balance	Percentage of total notes/ accounts receivable (payable)
Feng Tay Enterprises Co., Ltd. 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 Great Eastern Industries Limited PT Feng Tay Indonesia Enterprises 〞 Fujian Lifeng Footwear Industrial Development Company Limited 〞 〞 〞 Fujian Xiefeng Footwear Company Limited 〞 〞 〞 〞 〞 Fujian San Feng Footwear Company Limited 〞. 〞	Fujian Putian Xie Feng Mold Company Limited Dona Pacific (Vietnam) Co., Ltd. 〞 Vietnam Dona Orient Co., Ltd. 〞 Dona Victor Footwear Co., Ltd. 〞 Vietnam Dona Standard Footwear Co., Ltd 〞 Vung Tau Orient Co., Ltd 〞 Vietnam Nam Ha Footwear Company Limited 〞 Fujian Xiefeng Footwear Company Limited Feng Tay Enterprises Co., Ltd. 〞 Feng Tay Enterprises Co., Ltd. 〞 Fujian Xiefeng Footwear Company Limited Fujian Putian Xie Feng Mold Company Limited Feng Tay Enterprises Co., Ltd Fujian Lifeng Footwear Industrial Development Company Limited Fujian San Feng Footwear Company Limited Feng Tay Enterprises Co., Ltd. Great Eastern Industrises Limited Fujian Putian Xie Feng Mold Company Limited Feng Tay Enterprises Co., Ltd. 〞 Fujian Xiefeng Footwear Company Limited	Parent and subsidiary 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 Associate Subsidiary and parent 〞 Subsidiary and parent 〞 Associate 〞 Subsidiary and parent Associate 〞 Subsidiary and parent Associate 〞 Subsidiary and parent 〞 Associate	Purchase Sale Purchase Sale Purchase Sale Purchase Sale Purchase Sale Purchase Sale Purchase Sale Sale Purchase Sale Purchase 〞 〞 Sale 〞 〞 Purchase 〞 〞 Sale Purchase 〞	198,786 1,679,617 6,887,602 2,550,559 6,094,739 1,221,329 7,155,409 4,269,520 16,539,146 1,277,265 3,362,185 426,688 1,503,884 182,482 6,471,165 1,549,641 2,663,031 598,637 265,229 136,692 4,000,679 265,229 139,579 1,112,375 182,482 111,370 1,541,975 482,354 139,579	- 2% 9% 3% 8% 2% 10% 5% 23% 2% 5% 1% 2% 99% 100% 35% 77% 33% 15% 8% 78% 5% 3% 38% 6% 4% 53% 31% 9%	30 days 30 days 15 days 30 days 30 days 30 days 30 days 15 days 30 days 120 days 20 days 90 days 10 days 20 days 20 days 90 days 15 days 15 days 15~20 days 10~15 days 15 days 15~20 days 15~20 days 15 days 20 days 10~15 days 15 days 90 days 15~20 days	Selling price of goods was determined through negotiations and there were no other transactions with non-related parties to compare with. 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞	- - - - - - - - - - - - - - - - - - - - - - - - - - - - -	(18,251) 66,896 (288,154) 154,012 (632,432) 70,006 (632,718) 79,876 (1,106,891) 460,994 (127,761) 207,136 (48,829) 9,679 572,730 (295,622) 82,527 (36,428) (21,063) (5,883) 221,101 21,063 769 (50,916) (9,679) (3,135) 2,552 (63,930) (769)	- 1% (4%) 1% (9%) 1% (9%) 1% (15%) 4% (2%) 2% (1%) 58% 100% (62%) 58% (32%) (18%) (5%) 75% 7% - (18%) (3%) (1%) 1% (52%) (1%)	- - - - - - - - - - - - - - - - - - - - - - - - - - - -

63

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of company	Related party	Nature of relationship		Transaction details	Transaction details		Transactions wit different from	h terms others	Notes/ Accounts receivable (payable)	Notes/ Accounts receivable (payable)	Note
			Purchase/ Sale	Amount	Percentage of total purchases/ sales	Payment terms	Unit price	Payment terms	Ending balance	Percentage of total notes/ accounts receivable (payable)
Fujian San Feng Footwear Company Limited Fujian Great Hope Footwear Company Limited 〞 〞 Fujian Putian Xie Feng Mold Company Limited 〞 〞 〞 〞 Suzhou Yufeng Plastics Technology Co., Ltd. Dona Victor Footwear Co., Ltd. 〞 〞 〞 〞 Dona Pacific (Vietnam) Co., Ltd. 〞 〞 〞 〞 Vietnam Dona Orient Co., Ltd. 〞 〞 〞 〞 Dona Victor Molds Mfg Co., Ltd. 〞 〞	Fujian Putian Xie Feng Mold Company Limited Feng Tay Enterprises Co., Ltd. 〞 Fujian Putian Xie Feng Mold Company Limited Fujian Xiefeng Footwear Company Limited Fujian Lifeng Footwear Industrial Development Fujian Great Hope Footwear Company Limited Fujian San Feng Footwear Company Limited Feng Tay Enterprises Co., Ltd. Feng Tay Enterprises Co., Ltd. Feng Tay Enterprises Co., Ltd. 〞 Dona Pacific (Vietnam) Co., Ltd. Dona Victor Molds Mfg Co., Ltd. Vietnam Dona Standard Footwear Co., Ltd. Feng Tay Enterprises Co., Ltd. Vietnam Dona Orient Co., Ltd. Vietnam Dona Standard Footwear Co., Ltd. Dona Victor Footwear Co., Ltd. Feng Tay Enterprises Co., Ltd. Feng Tay Enterprises Co., Ltd. 〞 Vietnam Dona Standard Footwear Co., Ltd. Dona Pacific (Vietnam) Co., Ltd. Dona Victor Molds Mfg. Co., Ltd. Dona Victor Footwear Co., Ltd. Vietnam Dona Orient Co., Ltd. Vietnam Dona Standard Footwear Co., Ltd.	Associate Subsidiary and parent 〞 Associate Associate 〞 〞 〞 Subsidiary and parent Subsidiary and parent Subsidiary and parent 〞 Associate 〞 〞 Subsidiary and parent Associate 〞 〞 Subsidiary and parent Subsidiary and parent 〞 Associate 〞 〞 Associate 〞 〞	Purchase Sale Purchase 〞 Sale 〞 〞 〞 〞 Purchase Sale Purchase 〞 〞 〞 Sale 〞 〞 〞 Purchase Sale Purchase 〞 〞 〞 Sale 〞 〞	123,241 1,050,077 106,827 135,480 111,370 136,692 135,480 123,241 198,786 213,796 7,155,409 1,221,329 149,374 226,735 103,118 6,887,602 175,463 138,368 149,374 1,679,617 6,094,739 2,550,559 129,774 175,463 170,896 226,735 170,896 288,157	8% 99% 23% 28% 14% 18% 17% 16% 26% 75% 100% 68% 8% 13% 6% 94% 2% 2% 2% 73% 73% 64% 3% 4% 4% 28% 21% 36%	10~15 days 60 days 15 days 10~60 days 10~15 days 10~15 days 10~60 days 10~15 days 30 days 15 days 30 days 30 days 60 days 〞 〞 15 days 60 days 〞 〞 30 days 30 days 30 days 60 days 〞 〞 60 days 〞 〞	Selling price of goods was determined through negotiations and there were no other transactions with non-related parties to compare with. 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞	- - - - - - - - - - - - - - - - - - - - - - - - - - - -	(628) 128,209 (4,046) (26,488) 3,135 5,883 26,488 628 18,251 (41,076) 632,718 (70,006) (13,138) (29,643) (9,928) 288,154 12,614 9,168 13,138 (66,896) 632,432 (154,012) (9,662) (12,614) (28,495) 29,643 28,495 24,973	(1%) 99% (7%) (47%) 6% 11% 48% 1% 33% (84%) 100% (19%) (4%) (8%) (3%) 89% 4% 3% 4% (22%) 74% (39%) (2%) (3%) (7%) 31% 30% 26%	- - - - - - - - - - - - - - - - - - - - - - - - - - - -

64

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of company	Related party	Nature of relationship		Transaction details	Transaction details		Transactions wit different from	h terms others	Notes/ Accounts receivable (payable)	Notes/ Accounts receivable (payable)	Note
			Purchase/ Sale	Amount	Percentage of total purchases/ sales	Payment terms	Unit price	Payment terms	Ending balance	Percentage of total notes/ accounts receivable (payable)
Vung Tau Orient Co., Ltd. 〞 Vietnam Dona Standard Footwear Co., Ltd 〞 〞 〞 〞 〞 Vietnam Nam Ha Footwear Company Limited 〞 India Tindivanam Footwear Private Limited 〞 East Wind Footwear Company Limited (India Branch) 〞 Lotus Footwear Enterprises Private Limited (India Branch) 〞 Fairway Enterprises Company Limited (India Branch) 〞	Feng Tay Enterprises Co., Ltd. 〞 Feng Tay Enterprises Co., Ltd. Dona Victor Footwear Co., Ltd. Vietnam Dona Orient Co., Ltd. Feng Tay Enterprises Co., Ltd. Dona Pacific (Vietnam) Co., Ltd. Dona Victor Molds Mfg. Co., Ltd. Feng Tay Enterprises Co., Ltd. 〞 Feng Tay Enterprises Co., Ltd. 〞 Feng Tay Enterprises Co., Ltd. 〞 Feng Tay Enterprises Co., Ltd. 〞 Feng Tay Enterprises Co., Ltd. 〞	Subsidiary and parent 〞 Subsidiary and parent Associate 〞 Subsidiary and parent Associate 〞 Subsidiary and parent 〞 Subsidiary and parent 〞 Subsidiary and parent 〞 Subsidiary and parent 〞 Subsidiary and parent 〞	Sale Purchase Sale 〞 〞 Purchase 〞 〞 Sale Purchase Sale Purchase Sale Purchase Sale Purchase Sale Purchase	3,362,185 1,277,265 16,539,146 103,118 129,774 4,269,520 138,368 288,157 1,503,884 426,688 751,930 682,396 3,466,879 1,396,268 5,116,387 2,221,660 4,571,129 2,126,698	100% 89% 98% 1% 1% 87% 3% 6% 98% 82% 95% 90% 97% 94% 93% 97% 96% 98%	20 days 120 days 30 days 60 days 60 days 15 days 60 days 〞 10 days 90 days 10 days 90 days 30 days 60/90 days 30 days 90 days 30 days 30 days	Selling price of goods was determined through negotiations and there were no other transactions with non-related parties to compare with 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞. 〞 〞 〞 〞 〞 〞 〞	- - - - - - - - - - - - - - - - - -	127,761 (460,994) 1,106,891 9,928 9,662 (79,876) (9,168) (24,973) 48,829 (207,136) 57,388 (733,504) 391,548 (404,775) 475,742 (637,746) 339,358 (271,427)	98% (83%) 96% 1% 1% (13%) (1%) (4%) 93% (74%) 98% (93%) 97% (92%) 92% (92%) 97% (92%)	- - - - - - - - - - - - - - - - - -

Note: Reconciliated in the preparation of the consolidated report.

• v. Receivables from related parties with amounts exceeding the lower of $100 million or 20% of capital stock:

					(In Thousands of New Taiwan Dollar)	(In Thousands of New Taiwan Dollar)	(In Thousands of New Taiwan Dollar)	(In Thousands of New Taiwan Dollar)
Name of company	Related party	Nature of relationship	Ending balance (Note 1)	Turnover	Overdue		Amounts received in subsequent period	Allowance for credit loss
					Amount	Action taken
Feng Tay Enterprises Co., Ltd. 〞 〞	PT Feng Tay Indonesia Enterprises India Tindivanam Footwear Private Limited Lotus Footwear Enterprises Private Limited(India Branch)	Parent and subsidiary 〞 〞	295,622 733,504 637,746	4.00 1.17 3.58	- 662,463 -	- - -	94,177 12,698 179,792	- - -

65

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of company	Related party	Nature of relationship	Ending balance (Note 1)	Turnover	Overdue	Overdue	Amounts received in subsequent period	Allowance for credit loss
					Amount	Action taken
Feng Tay Enterprises Co., Ltd. 〞 〞 〞 〞 〞 PT Feng Tay Indonesia Enterprises Fujian Xiefeng Footwear Company Limited Fujian Great Hope Footwear Company Limited Dona Victor Footwear Co., Ltd. Dona Pacific (Vietnam) Co., Ltd. Vietnam Dona Orient Co., Ltd. Vung Tau Orient Co., Ltd. Vietnam Dona Standard Footwear Co., Ltd. East Wind Footwear Company Limited (India Branch) Lotus Footwear Enterprises Private Limited (India Branch) Fairway Enterprises Company Limited (India Branch)	East Wind Footwear Company Limited (India Branch) Fairway Enterprises Company Limited (India Branch) 〞 Vietnam Dona Orient Co., Ltd. Vung Tau Orient Co., Ltd. Vietnam Nam Ha Footwear Company Limited Feng Tay Enterprises Co., Ltd. Feng Tay Enterprises Co., Ltd. Feng Tay Enterprises Co., Ltd. Feng Tay Enterprises Co., Ltd. Feng Tay Enterprises Co., Ltd. Feng Tay Enterprises Co., Ltd. Feng Tay Enterprises Co., Ltd. Feng Tay Enterprises Co., Ltd. Feng Tay Enterprises Co., Ltd. Feng Tay Enterprises Co., Ltd. Feng Tay Enterprises Co., Ltd.	Parent and subsidiary 〞 〞 〞 〞 〞 Subsidiary and parent Subsidiary and parent Subsidiary and parent Subsidiary and parent Subsidiary and parent Subsidiary and parent Subsidiary and parent Subsidiary and parent Subsidiary and parent Subsidiary and parent Subsidiary and parent	404,775 271,427 128,797 154,012 460,994 207,136 572,730 221,101 128,209 632,718 288,154 632,432 127,761 1,106,891 391,548 475,742 339,358	3.73 6.80 Note 2 13.71 3.31 2.94 14.37 15.70 7.22 10.33 21.89 10.24 22.50 14.27 7.91 10.23 13.96	130,334 - - - - 77,972 - - - - - - - - - - -	- - - - - - - - - - - - - - - - -	78,276 146,275 - 134,712 121,752 67,374 260,061 221,101 55,184 632,700 288,154 632,432 127,761 1,095,469 255,670 378,857 339,358	- - - - - - - - - - - - - - - - -

Note 1: Reconciliated in the preparation of the consolidated report. Note 2: As the amount primarily relates to other receivables, it is not applicable for the calculation of turnover days.

• vi. Business relationships and significant intercompany transactions:

(In Thousands of New Taiwan Dollar)

No. (Note1)	Name of company	Name of counter-party	Nature of relationship (Note 2)		Intercompany transactions	Intercompany transactions
				Account name	Amount	Trading terms	Percentage of the consolidated net revenue or total assets
0 〞 〞 〞	Feng Tay Enterprises Co., Ltd. 〞 〞 〞	PT Feng Tay Indonesia Enterprises 〞 〞 〞	1 〞 〞 〞	Sales revenue Cost of sales Accounts receivable due from related parties Accounts payable to related parties	1,549,641 6,471,165 295,622 572,730	Note 3 Note 3 90 days 20 days	1.8556% 7.7488% 0.5610% 1.0870%

66

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

No. (Note1)	Name of company	Name of counter-party	Nature of relationship (Note 2)		Intercompany transactions	Intercompany transactions
				Account name	Amount	Trading terms	Percentage of the consolidated net revenue or total assets
0 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞	Feng Tay Enterprises Co., Ltd. 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞	India Tindivanam Footwear Private Limited 〞 〞 〞 Lotus Footwear Enterprises Private Limited (India Branch) 〞 〞 〞 East Wind Footwear Company Limited (India Branch) 〞 〞 〞 Fairway Enterprises Company Limited (India Branch) 〞 〞 〞 Fujian Lifeng Footwear Industrial Development Company Limited 〞 〞 〞 Fujian San Feng Footwear Company Limited 〞 〞 〞 Fujian Xiefeng Footwear Company Limited 〞 〞 〞	1 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞	Sales revenue Cost of sales Accounts receivable due from related parties Accounts payable to related parties Sales revenue Cost of sales Accounts receivable due from related parties Accounts payable to related parties Sales revenue Cost of sales Accounts receivable due from related parties Accounts payable to related parties Sales revenue Cost of sales Accounts receivable due from related parties Accounts payable to related parties Sales revenue Cost of sales Accounts receivable due from related parties Accounts payable to related parties Sales revenue Cost of sales Accounts receivable due from related parties Accounts payable to related parties Sales revenue Cost of sales Accounts receivable due from related parties Accounts payable to related parties	682,396 751,930 733,504 57,388 2,221,660 5,116,387 637,746 475,742 1,396,268 3,466,879 404,775 391,548 2,126,698 4,571,129 271,427 339,358 598,637 2,663,031 36,428 82,527 482,354 1,541,975 63,930 2,552 1,112,375 4,000,679 50,916 221,101	Note 3 Note 3 90 days 10 days Note 3 Note 3 90 days 30 days Note 3 Note 3 60/90 days 30 days Note 3 Note 3 30 days 30 days Note 3 Note 3 15 days 15 days Note 3 Note 3 90 days 15 days Note 3 Note 3 15 days 15 days	0.8171% 0.9004% 1.3921% 0.1089% 2.6603% 6.1265% 1.2104% 0.9029% 1.6719% 4.1514% 0.7682% 0.7431% 2.5466% 5.4736% 0.5151% 0.6441% 0.7168% 3.1888% 0.0691% 0.1566% 0.5776% 1.8464% 0.1213% 0.0048% 1.3320% 4.7905% 0.0966% 0.4196%

67

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

No. (Note1)	Name of company	Name of counter-party	Nature of relationship (Note 2)		Intercompany transactions	Intercompany transactions
				Account name	Amount	Trading terms	Percentage of the consolidated net revenue or total assets
0 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞	Feng Tay Enterprises Co., Ltd. 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞	Fujian Great Hope Footwear Company Limited 〞 〞 〞 Fujian Putian Xie Feng Mold Company Limited 〞 Suzhou Yufeng Plastics Technology Co., Ltd. 〞 Dona Pacific (Vietnam) Co., Ltd. 〞 〞 〞 Vietnam Dona Orient Co., Ltd. 〞 〞 〞 〞 Dona Victor Footwear Co., Ltd. 〞 〞 〞 Vietnam Dona Standard Footwear Co., Ltd. 〞 〞 〞 Vung Tau Orient Co., Ltd. 〞 〞 〞 Vietnam Nam Ha Footwear Company Limited	1 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞	Sales revenue Cost of sales Accounts receivable due from related parties Accounts payable to related parties Cost of sales Accounts payable to related parties Sales revenue Accounts receivable due from related parties Sales revenue Cost of sales Accounts receivable due from related parties Accounts payable to related parties Sales revenue Cost of sales Technical service income Accounts receivable due from related parties Accounts payable to related parties Sales revenue Cost of sales Accounts receivable due from related parties Accounts payable to related parties Sales revenue Cost of sales Accounts receivable due from related parties Accounts payable to related parties Sales revenue Cost of sales Accounts receivable due from related parties Accounts payable to related parties Sales revenue	106,827 1,050,077 4,046 128,209 198,786 18,251 213,796 41,076 1,679,617 6,887,602 66,896 288,154 2,550,559 6,094,739 143,949 154,012 632,432 1,221,329 7,155,409 70,006 632,718 4,269,520 16,539,146 79,876 1,106,891 1,277,265 3,362,185 460,994 127,761 426,688	Note 3 Note 3 15 days 60 days Note 3 30 days Note 3 15 days Note 3 Note 3 30 days 15 days Note 3 Note 3 Note 4 30 days 30 days Note 3 Note 3 30 days 30 days Note 3 Note 3 15 days 30 days Note 3 Note 3 120 days 20 days Note 3	0.1279%. 1.2574% 0.0077% 0.2433% 0.2380% 0.0346% 0.2560% 0.0780% 2.0112% 8.2474% 0.1270% 0.5469% 3.0541% 7.2980% 0.1724% 0.2923% 1.2003% 1.4625% 8.5681% 0.1329% 1.2008% 5.1125% 19.8045% 0.1516% 2.1007% 1.5294% 4.0260% 0.8749% 0.2425% 0.5109%

68

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

No. (Note1)	Name of company	Name of counter-party	Nature of relationship (Note 2)		Intercompany transactions	Intercompany transactions
				Account name	Amount	Trading terms	Percentage of the consolidated net revenue or total assets
0 〞 〞 1 〞 2 〞 〞 〞 3 〞 〞 〞 〞 〞 〞 〞 4 〞 〞 〞 〞 〞 5 〞 〞	Feng Tay Enterprises Co., Ltd. 〞 〞 Great Eastern Industries Limited. 〞 Fujian Xiefeng Footwear Company Limited 〞 〞 〞 Fujian Putian Xie Feng Mold Company Limited 〞 〞 〞 〞 〞 〞 〞 Dona Pacific (Vietnam) Co., Ltd. 〞 〞 〞 〞 〞 Dona Victor Molds Mfg. Co., Ltd. 〞 〞	Vietnam Nam Ha Footwear Company Limited 〞 〞 Fujian Xiefeng Footwear Company Limited 〞 Fujian Lifeng Footwear Industrial Development Company Limited 〞 Fujian San Feng Footwear Company Limited 〞 Fujian Xiefeng Footwear Company Limited 〞 Fujian Lifeng Footwear Industrial Development Company Limited 〞 Fujian Great Hope Footwear Company Limited 〞 Fujian San Feng Footwear Company Limited 〞 Vietnam Dona Orient Co., Ltd. 〞 Vietnam Dona Standard Footwear Co., 〞 Dona Victor Footwear Co., Ltd. 〞 Dona Victor Footwear Co., Ltd. 〞 Vietnam Dona Orient Co., Ltd.	1 〞 〞 3 〞 3 〞 〞 〞 3 〞 〞 〞 〞 〞 〞 〞 3 〞 〞 〞 〞 〞 3 〞 〞	Cost of sales Accounts receivable due from related parties Accounts payable to related parties Sales revenue Accounts receivable due from related parties Sales revenue Accounts receivable due from related parties Sales revenue Accounts receivable due from related parties Sales revenue Accounts receivable due from related parties Sales revenue Accounts receivable due from related parties Sales revenue Accounts receivable due from related parties Sales revenue Accounts receivable due from related parties Sales revenue Accounts receivable due from related parties Sales revenue Accounts receivable due from related parties Sales revenue Accounts receivable due from related parties Sales revenue Accounts receivable due from related parties Sales revenue	1,503,884 207,136 48,829 182,482 9,679 265,229 21,063 139,579 769 111,370 3,135 136,692 5,883 135,480 26,488 123,241 628 175,463 12,614 138,368 9,168 149,374 13,138 226,735 29,643 170,896	Note 3 90 days 10 days Note 3 20 days Note 3 15~20 days Note 3 15~20 days Note 3 10~15 days Note 3 10~15 days Note 3 10~60 days Note 3 10~15 days Note 3 60 days Note 3 60 days Note 3 60 days Note 3 60 days Note 3	1.8008% 0.3931% 0.0927% 0.2185% 0.0184% 0.3176% 0.0400% 0.1671% 0.0015% 0.1334% 0.0059% 0.1637% 0.0112% 0.1622% 0.0503% 0.1476% 0.0012% 0.2101% 0.0239% 0.1657% 0.0174% 0.1789% 0.0249% 0.2715% 0.0563% 0.2046%

69

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

No. (Note1)	Name of company	Name of counter-party	Nature of relationship (Note 2)		Intercompany transactions	Intercompany transactions
				Account name	Amount	Trading terms	Percentage of the consolidated net revenue or total assets
5 〞 〞 6 〞 〞 〞	Dona Victor Molds Mfg Co., Ltd. 〞 〞 Vietnam Dona Standard Footwear Co., 〞 〞 〞	Vietnam Dona Orient Co., Ltd. Vietnam Dona Standard Footwear Co., Ltd. 〞 Dona Victor Footwear Co., Ltd. 〞 Vietnam Dona Orient Co., Ltd. 〞	3 〞 〞 3 〞 〞 〞	Accounts receivable due from related parties Sales revenue Accounts receivable due from related parties Sales revenue Accounts receivable due from related parties Sales revenue Accounts receivable due from related parties	28,495 288,157 24,973 103,118 9,928 129,774 9,662	60 days Note 3 60 days Note 3 60 days Note 3 60 days	0.0541% 0.3450% 0.0474% 0.1235% 0.0188% 0.1554% 0.0183%
Note 1: Th 1.	e numbers filled in as 0 represents the parent	follows: company.

1. Subsidiaries are sorted in a numerical order starting from 1.

Note 2: Transactions labeled as follows:

1. represents transactions between the parent company and its subsidiaries.

2. represents transactions between the subsidiaries and the parent company.

3. represents transactions between subsidiaries.

Note 3: Selling price of goods is determined through negotiations and there are no other transactions with non-related parties to compare with.

Note 4: Revenue is calculated based on a certain ratio determined by the contract, and there are no other transactions with non-related party to compare with.

(b) Information on investment

The following is the information on investment for the year ended December 31, 2025

(excluding information on investment in Mainland China):

								(In Thousands of New Taiwan Dollar)	(In Thousands of New Taiwan Dollar)	(In Thousands of New Taiwan Dollar)	(In Thousands of New Taiwan Dollar)	(In Thousands of New Taiwan Dollar)
Name of investor	Name of investee	Location	Main businesses and products	Original investment amount		Balance as of December		31, 2025	Highest balance during the year Percentage of ownership	Net income (losses) of investee	Share of profits/los ses of investee	Note (Note 6)
				December 31, 2025	December 31, 2024	Shares	Percentage of ownership	Carrying value
Feng Tay Enterprises Co., Ltd. 〞 〞 〞 〞	PT Feng Tay Indonesia Enterprises PT Rich Valley Indonesia Growth-Link Overseas Company Limited VX Holdings Limited Shoe Majesty Co., Ltd.	Indonesia 〞 Bermuda British Virgin Islands 〞	Manufacturing of athletic shoes, casual shoes, semi-finished footwear and footwear accessories Manufacturing of athletic shoes, casual shoes, semi-finished footwear and footwear accessories Investment holding Investment holding Investment holding	1,324,722 1,063,389 5,521,531 446,117 203,466	1,324,722 1,063,389 5,521,531 446,117 203,466	53,999 519,990 6,000,000 38,280 6,120	99.99% 99.99% 100.00% 47.26% 20.40%	1,036,561 1,125,422 16,472,905 843,848 588,445	99.99% 99.99% 100.00% 47.26% 20.40%	(69,057) (7,222) 2,723,610 354,456 365,090	(69,055) (7,222) 2,723,610 167,516 74,478	Subsidiary (Note 5) 〞 〞 〞 Investee under the equity method

70

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of investor	Name of investee	Location	Main businesses and products	Original investment amount	Original investment amount	Balance as of December	Balance as of December	31, 2025	Highest balance during the year Percentage of ownership	Net income (losses) of investee	Share of profits/los ses of investee	Note (Note 6)
				December 31, 2025	December 31, 2024	Shares	Percentage of ownership	Carrying value
Feng Tay Enterprises Co., Ltd. 〞 〞 〞 Growth- Link Overseas Company Limited 〞 〞 〞 〞 〞 〞 〞 〞 VX Holdings Limited Dona Orient Holdings Limited 〞 〞	Dona Orient Holdings Limited Great Eastern Industrises Limited Great South Private Limited India Tindivandam Footwear Private Limited VX Mold Company Limited VX Holdings Limited Dona Pacific Holdings Limited Shoe Majesty Co., Ltd. Dona Orient Holdings Limited Lotus Footwear Enterprises Private Limited PT Rich Valley Indonesia PT Feng Tay Indonesia Enterprises Cheyyar SEZ Developers Private Limited Dona Victor Footwear Co., Ltd. Vietnam Dona Orient Co., Ltd. Vietnam Dona Standard Footwear Co., Ltd. Vung Tau Orient Co., Ltd.	British Virgin Island Hong Kong Singapore India British Virgin Islands 〞 〞 〞 〞 Singapore (Note 8) Indonesia 〞 India Vietnam Vietnam 〞 〞	Investment holding International trade services Investment holding Manufacturing of athletic shoes, semi-finished footwear and footwear accessories Investment holding Investment holding Investment holding Investment holding Investment holding Investment holding business, and manufacturing and selling of finished shoes Manufacturing of athletic shoes, casual shoes, semi-finished footwear and footwear accessories Manufacturing of athletic shoes, casual shoes, semi-finished footwear and footwear accessories Development in India’s Industrial Park Manufacturing of athletic shoes, semi-finished footwear, and footwear accessories Manufacturing of athletic shoes, semi-finished footwear, and footwear accessories Manufacturing of athletic shoes, semi-finished footwear, and footwear accessories Producing golf balls, soccer balls, and backpack,bags	1,529,928 30,358 37,946 2,064,338 15,715 298,354 391,440 252,461 2,066,298 2,135,095 22 22 - 1,034,045 1,380,720 2,375,466 1,136,685	1,529,928 30,358 37,946 1,748,180 15,715 298,354 391,440 252,461 2,066,298 2,135,095 22 22 - 1,035,045 1,380,720 2,375,466 1,136,685	44,753 1,000 1,700 548,804,047 372,000 36,342 23,000 8,580 64,483 34,020 10 1 1 Note 4 Note 4 〞 〞	40.97% 100.00% 100.00% 96.49% 93.00% 44.87% 92.00% 28.60% 59.03% 88.00% 0.01% 0.01% 0.01% 100.00% 100.00% 100.00% 100.00%	4,003,609 35,694 21,941 1,236,561 326,719 817,675 1,550,977 856,535 6,053,418 4,096,453 22 20 - 1,821,082 2,644,027 5,142,017 1,125,842	40.97% 100.00% 100.00% 96.49% 93.00% 44.87% 92.00% 28.60% 59.03% 88.00% 0.01% 0.01% 0.01% 100.00% 100.00% 100.00% 100.00%	1,587,133 4,143 4,823 (325,591) 225,876 354,456 440,099 365,090 1,587,133 500,921 (7,222) (69,057) 17,080 355,304 774,692 810,685 105,599	650,248 4,143 4,823 (313,815) 210,065 159,033 404,891 104,416 936,885 440,811 - (2) - 355,304 774,692 810,685 105,599	Subsidiary (Note 5) 〞 〞 Subsidiary (Note 3&5) Subsidiary (Note 5) Investee under the equity method (Note 5) Subsidiary (Note 5) Investee under the equity method Subsidiary (Note 5) 〞 Investee under the equity method (Note 5) 〞 〞 Subsidiary (Note 5) Subsidiary (Note 5) 〞 〞

71

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of investor	Name of investee	Location	Main businesses and products	Original investment amount	Original investment amount	Balance as of December	Balance as of December	31, 2025	Highest balance during the year Percentage of ownership	Net income (losses) of investee	Share of profits/los ses of investee	Note (Note 6)
				December 31, 2025	December 31, 2024	Shares	Percentage of ownership	Carrying value
Dona Orient Holdings Limited VX Mold Company Limited Dona Pacific Holdings Limited Lotus Footwear Enterprises Private Limited 〞 〞	Vietnam Nam Ha Footwear Company Limited Dona Victor Molds Mfg. Co., Ltd. Dona Pacific (Vietnam) Co., Ltd. Cheyyar SEZ Developers Private Limited East Wind Footwear Company Limited Fairway Enterprises CompanyLimited	Vietnam Vietnam Vietnam India British Virgin Islands 〞	Manufacturing of athletic shoes, semi-finished footwear, and footwear accessories Manufacturing and repair of molds, cutting dies, and processing of metal parts Manufacturing of athletic shoes, semi-finished footwear, and footwear accessories Development in India’s Industrial Park Investment holding and production of athletic shoes Investment holding and production of athletic shoes	1,945,560 97,278 627,600 3,762,260 492,524 1,359,525	1,945,560 97,278 627,600 3,762,260 513,716 1,436,994	Note 4 Note 4 Note 4 117,999,999 9,751 29,501	100.00% 100.00% 100.00% 99.99% 100.00% 100.00%	1,340,930 349,346 1,682,274 2,801,374 973,941 1,549,843	100.00% 100.00% 100.00% 99.99% 100.00% 100.00%	(102,861) 226,595 440,839 17,080 211,050 195,978	(102,861) 226,595 440,839 17,080 211,050 195,978	Subsidiary (Note 5) Subsidiary (Note 5) Subsidiary (Note 5) Subsidiary (Note 5) 〞 〞

Note 1: Includes overseas undertakings invested by the Company and re-investment of the overseas undertakings.

Note 2: Carrying value refers to ending balance of investment recognized using the equity method, including investment gains or losses, and cumulative translation adjustments.

Note 3: Based on the unreviewed financial statements as of December 31, 2025.

Note 4: Unissued shares of the Vietnamese entities.

Note 5: Included in the consolidated financial statements.

Note 6: Represents the relationship between the investor and the investee.

Note 7: The difference between the investee company's profit or loss for the current period and the investment income recognized by the investing company for the current period is mainly due to the realization of sales gross profit.

Note 8: The subsidiary was originally incorporated in the British Virgin Islands and was re-domiciled to Singapore in 2025.

(c) Information on investment in mainland China

• i. The names of investees in Mainland China, the main businesses and products, and other information

							(In Thousands of New Taiwan Dollar)	(In Thousands of New Taiwan Dollar)	(In Thousands of New Taiwan Dollar)	(In Thousands of New Taiwan Dollar)	(In Thousands of New Taiwan Dollar)	(In Thousands of New Taiwan Dollar)	(In Thousands of New Taiwan Dollar)
Name of investee	Main businesses and products	Total amount of capital surplus (Note 7)	Method of investment	Accumulated outflow of investment from Taiwan as of January 1, 2025 (Note 7)	Investm	ent flows	Accumulated outflow of investment from Taiwan as of December 31, 2025 (Note 7)	Net income (losses) of the investee (Note 8)	Percentage of ownership	Highest Percentage of ownership during the year	Investment income (losses) (Note 3 and 8)	Book value (Note 7)	Accumulated remittance of earnings in current period (Note 8)
					Outflow	Inflow
Fujian Wu Feng Department Store Co., Ltd. Fujian Putian Xie Feng Mold Company Limited	Wholesale and retail of general merchandise, and related services. Manufacturing and repair of molds, cutting dies, shoe lasts, injections, and processing of metalparts.	141,210 94,140	Note 1 〞	171,949 150,727	- -	- -	171,949 150,727	149,502 125,861	50.00% 50.34%	50.00% 50.34%	74,751 63,352	104,171 184,387	105,314 1,417,881

72

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of investee	Main businesses and products	Total amount of capital surplus (Note 7)	Method of investment	Accumulated outflow of investment from Taiwan as of January 1, 2025 (Note 7)	Investm	ent flows	Accumulated outflow of investment from Taiwan as of December 31, 2025 (Note 7)	Net income (losses) of the investee (Note 8)	Percentage of ownership	Highest Percentage of ownership during the year	Investment income (losses) (Note 3 and 8)	Book value (Note 7)	Accumulated remittance of earnings in current period (Note 8)
					Outflow	Inflow
Fujian Xiefeng Footwear Company Limited Fujian San Feng Footwear Company Limited Fujian Da Feng Holdings Company Limited Fujian Great Hope Footwear Company Limited Fujian Lifeng Footwear Industrial Developme nt Company Limited Suzhou Yufeng Plastics Technology Co.,Ltd.	Producing athletic shoes, semi-finished footwear, and footwear accessories. Producing athletic shoes, semi-finished footwear, and footwear accessories. Investment holding. Production of athletic shoes, casual shoes, semi-finished footwear, footwear accessories, protective gear, and other supporting products. Producing athletic shoes, semi-finished footwear, and footwear accessories. Manufacturing and processing of plastic products.	470,700 470,700 847,260 249,471 470,700 80,419	Note 1 〞 〞 〞 Note 2 〞	177,995 284,797 878,995 420,005 - -	- - - - - -	- - - - - -	177,995 284,797 878,995 420,005 - -	214,332 (17,049) 421,419 88,875 140,361 69,508	77.50% 68.00% 70.00% 84.73% 70.00% 66.07%	77.50% 68.00% 70.00% 84.73% 70.00% 66.07%	166,107 (11,593) 294,993 75,308 98,253 45,921	702,521 407,467 1,939,465 370,107 485,381 191,238	1,165,699 1,118,557 7,041,311 796,070 - -

ii. Upper limit on investment in Mainland China

Accumulated Investment in Mainland China as of December 31, 2025 (Note 4 and 7)	Investment Amounts Authorized by Investment Commission, MOEA (Note 5 and 7)	Upper Limit on Investment (Note 6)
2,084,468	2,841,539	16,695,044

Note 1: Indirect investment in the Company located in Mainland China through an existing company registered in the third region.

Note 2: Investment in companies in Mainland China through the existing companies registered in Mainland China.

Note 3: Recognized profit and loss from investment for the current period is based on the financial statements audited by the parent company’s certified public accountants.

Note 4: The cumulative investment amount has been deducted by capital increase from retained earnings of USD 3,939,943, capital repatriation of USD 20,185,981, but not yet deducted the cumulative amount of profit repatriation from Mainland China authorized by the Investment Commission of USD 373,860,894.

Note 5: The authorized investment amount is the original investment amounts authorized by investment Commission.

Note 6: The higher of the 60 % of net or combined net value, as calculated based on the upper limit stipulated in “Regulations Governing the Examination of Investment or Technical Cooperation in Mainland China” amended by the Investment Commission on August 29, 2008.

Note 7: Calculated based on the closing exchange rate of 31.380 on December 31, 2025.

Note 8: Calculated based on the average closing exchange rate of 31.1475 between January and the end of December 2025.

iii Significant transactions:

The significant inter-company transactions with the subsidiary in Mainland China, which were eliminated in the preparation of consolidated financial statements, are disclosed in “Information on significant transactions”.

73

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

(14) Segment information

(a) General information

The Group has reportable department, footwear manufacturing and sales department, which mainly engaged in the production and sales of various sports shoes. Other departments are mainly engaged in the manufacturing of sports balls and bags.

The Group ’ s operating segment information and reconciliation are as follows:

Department of

	Department of	Department of
	manufacturing		Other	Reconciliation
	and	selling shoes	Departments	and elimination	Total
2025
Revenue
Revenue from external customers	$	79,320,417	4,191,606	-	83,512,023
Intersegment revenues		74,855,072	3,902,205	(78,757,277)	-
Total revenue	$	154,175,489	8,093,811	(78,757,277)	83,512,023
Interest expenses	$	230,651	19,167	-	249,818
Depreciation and amortization		3,007,035	214,585	(142,391)	3,079,229
Share of profit (loss) of associates
and joint ventures accounted for		3,495,829	-	(3,316,935)	178,894
using equity method
Gain on reversal of impairment loss		(2,464)	-	-	(2,464)
Reportable segment profit or loss	$	7,720,836	356,763	(159,158)	7,918,441
2024
Revenue
Revenue from external customers	$	83,370,220	4,117,250	-	87,487,470
Intersegment revenues		77,973,026	3,859,874	(81,832,900)	-
Total revenue	$	161,343,246	7,977,124	(81,832,900)	87,487,470
Interest expenses	$	255,297	29,674	(998)	283,973
Depreciation and amortization		3,111,998	209,010	(151,275)	3,169,733
Share of profit (loss) of associates
and joint ventures accounted for		2,977,634	-	(2,818,559)	150,075
using equity method
Impairment of assets		33,754	-	-	33,754
Reportable segment profit or loss	$	8,669,505	(22,069)	(65,390)	8,582,046

74

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

The material reconciling items of the above reportable segment are as below:

Total reportable segment revenue after deducting the intersegment revenue was $78,757,277 thousand in 2025 (2024: $81,832,900 thousand)

• (b) Product and service information

Revenue from the external customers of the Group was as follows:

Product and services 2025 Manufacturing and sales of shoes $ 79,320,417 Others 4,191,606 Total $ 83,512,023	2024
	83,370,220 4,117,250
	87,487,470

• (c) Geographic information

In presenting information on the basis of geography, segment revenue is based on the geographical location of customers, please refer to Note (6)(q), and non-current assets are based on the geographical location of the assets.

Geographical information 2025 Non-current assets: Vietnam $ 8,588,818 India 6,733,239 Taiwan 4,705,459 Mainland China 2,041,920 Indonesia 2,724,248 Other countries 32,350 Total $ 24,826,034	2024
	9,665,297 7,154,196 4,053,540 2,412,671 2,949,036 38,358
	26,273,098

Non-current assets include property, plant and equipment, right-of-use assets, investment property, intangible assets, and other non-current assets, excluding financial instruments, deferred tax assets and refundable deposits.

• (d) Major customers

2025 A customer of shoe manufacturing and sales division$ 69,603,310	2024
	75,278,780