Stock Code: 9910

FENG TAY ENTERPRISES CO., LTD.

PARENT-COMPANY-ONLY FINANCIAL STATEMENTS

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

Address: No. 52 Kegong 8th Rd., Douliou City, Yunlin County 640111, Taiwan Telephone: (05)537-9100

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

Contents
1. Cover Page
2. Table of Contents
3. Independent Auditors’ Report
4. Balance Sheets
5. Statements of Comprehensive Income
6. Statements of Changes in Equity
7. Statements of Cash Flows
8. Notes to the Financial Statements
(1)
Company history
(2)
Approval date and procedures of the 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
9. Statements of Major Accounting Items Page

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Contents 1. Cover Page 2. Table of Contents 3. Independent Auditors’ Report 4. Balance Sheets 5. Statements of Comprehensive Income 6. Statements of Changes in Equity 7. Statements of Cash Flows 8. Notes to the Financial Statements (1) Company history (2) Approval date and procedures of the 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 9. Statements of Major Accounting Items	Page
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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 Feng Tay Enterprises Co., Ltd.:

Opinion

We have audited the financial statements of Feng Tay Enterprises Co., Ltd.(“ the Company” ), which comprised the statement of financial position as of December 31, 2025 and 2024, and the statement of comprehensive income, changes in equity and cash flows for the years ended December 31, 2025 and 2024, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and its financial performance and its cash flows for the years ended December 31, 2025 and 2024 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

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

The key audit matters, in relation to the financial statements for the year ended December 31, 2024, are outlined as follows:

Revenue recognition

Please refer to Note (4)(o) of the parent-company-only financial statements for details of the accounting policies on revenue recognition. Please refer to Note (6)(n) of the parent-company-only 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.

3-1

Description of the key auditor matter:

The Company 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 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 Feng Tay Enterprises Co., Ltd. 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 cutoff 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.

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

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

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

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

Auditors’ Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the 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 financial statements.

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

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

3-2

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

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the 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 parent-company-only financial statements are intended only to present the 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 parent-company-only financial statements are those generally accepted and applied in the Republic of China.

(English Translation of Parent-company-only Financial Statements and Report Originally Issued in Chinese) FENG TAY ENTERPRISES CO., LTD.

Balance Sheets

December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

Assets Current assets: 1100 Cash and cash equivalents (Notes (4), (6)(a) and (6)(k)) 1170 Accounts receivable (Notes (4), (6)(b) and (6)(n)) 1180 Accounts receivable due from related parties, net (Notes (6)(b), (6)(n) and (7)) 1200 Other receivables (Note (7)) 1220 Total current tax assets (Note (6)(k)) 130X Inventories (Notes (4) and (6)(c)) 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), (6)(e) and (7)) 1760 Investment Property, net (Notes (4) and (6)(f)) 1780 Intangible assets (Notes (4) and (6)(g)) 1840 Deferred tax assets (Notes (4) and (6)(k)) 1900 Other non-current assets 1980 Other non-current financial assets (Note (8)) Total non-current assets Total assets	December 31, 2025 Amount % $ 746,303 2 7,739,327 18 3,589,932 9 187,407 1 65,002 - 164,017 - 97,213 - 12,589,201 30 25,364,986 60 4,263,168 10 6,858 - 58,281 - 209,349 - 67,449 - 241 - 29,970,332 70 $ 42,559,533 100	December 31, 2024 Amount % 1,329,471 3 7,611,689 18 4,104,105 10 95,585 - 24,308 - 174,214 - 133,016 - 13,472,388 31 26,415,542 60 3,448,252 8 6,858 - 51,059 - 194,314 - 237,668 1 221 - 30,353,914 69 43,826,302 100 Liabilities and Equity Current liabilities: 2100 Short-term borrowings (Note (6)(h)) 2150 Notes payable 2170 Accounts payable 2180 Accounts payable to related parties (Note (7)) 2200 Other payables (Note (7)) 2230 Current tax liabilities 2300 Other current liabilities Total current liabilities Non-Current liabilities: 2540 Long-term borrowings (Note (6)(i)) 2570 Deferred tax liabilities (Notes (4) and (6)(k)) 2640 Non current net defined benefit liability (Notes (4) and (6)(j)) Total non-current liabilities Total liabilities Equity (Note (6)(l)): 3100 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 Total liabilities and equity	December 31, 2025	December 31, 2025		December 31, 2024
			Amount	%		Amount % 2,000,000 5 527,407 1 1,472,276 3 5,922,365 14 1,358,666 3 588,525 1 14,958 - 11,884,197 27 1,500,000 4 3,078,748 7 523,306 1 5,102,054 12 16,986,251 39 9,874,828 22 49,085 - 6,979,145 16 1,127,303 3 8,449,684 19 360,006 1 26,840,051 61 43,826,302 100

The accompanying notes are an integral part of the financial statements

(English Translation of Parent-company-only Financial Statements Originally Issued in Chinese) FENG TAY ENTERPRISES CO., LTD.

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 Total operating revenue (Notes (4), (6)(n) and (7)) 5000 Operating costs (Notes (6)(c) and (7)) 5900 Gross profit from operations 5910 Less: Unrealized profit from sales 5920 Add: Realized profit from sales Operating expenses: 6100 Less: Selling and administration expenses 6300 Less: Research and development expenses Total operating expenses Operating income Non-operating income and expenses: 7100 Interest income (Note (6)(p)) 7010 Other income (Note (6)(p)) 7020 Other gains and losses, net (Notes (6)(p) and (7)) 7050 Finance costs (Note (6)(p)) 7070 Share of profit of associates and joint ventures accounted for using equity method, net (Notes (4) and (6)(d)) Total non-operating income and expenses 7900 Profit from continuing operations before tax 7950 Income tax expenses (Note (6)(k)) Net profit Other comprehensive income (loss): 8310 Item that will not be reclassified subsequently to profit or loss 8311 Remeasurements of defined benefit plan 8330 Share of other comprehensive income (loss) of subsidiaries, associates and joint ventures accounted for using equity method, components of other comprehensive income that may not be reclassified to profit or loss 8349 Income tax related to components of other comprehensive income (loss) that may not be reclassified to profit or loss Item that will not be reclassified subsequently to profit or loss 8360 Items that may be reclassified subsequently to profit or loss 8361 Exchange differences on translation of foreign financial statements 8380 Share of other comprehensive income (loss) of subsidiaries, associates and joint ventures accounted for using equity method, components of other comprehensive income that will be reclassified to profit or loss 8399 Income tax related to components of other comprehensive income (loss) that may be reclassified to profit or loss Items that may be reclassified subsequently to profit or loss Other comprehensive income (loss) 8500 Total comprehensive income Basic earnings per share (Notes (4) and (6)(m)) 9750 Basic earnings per share (dollars)	2025	% 100 (91) 9 1 1 9 2 3 5 4 - - - - 4 4 8 (2) 6 - - - - (1) - - (1) (1) 5 5.10	2024 Amount 85,302,224 (76,994,530) 8,307,694 508,537 467,230 8,266,387 2,202,420 2,696,785 4,899,205 3,367,182 19,700 254,357 732,566 (48,251) 2,819,656 3,778,028 7,145,210 (1,275,672) 5,869,538 317,190 320,045 (63,438) 573,797 1,618,016 (124,375) (6,332) 1,487,309 2,061,106 7,930,644	% 100 (90) 10 1 1 10 3 3 6 4 - - 1 - 3 4 8 (1) 7 - - - - 2 - - 2 2 9 5.94
	Amount $ 81,132,347 (73,639,244) 7,493,103 491,521 508,537 7,510,119 1,988,900 2,685,032 4,673,932 2,836,187 11,890 284,968 (38,835) (59,505) 3,234,726 3,433,244 6,269,431 (1,233,389) 5,036,042 217,652 47,254 (43,530) 221,376 (1,178,288) (81,127) 4,516 (1,254,899) (1,033,523) $ 4,002,519 $

The accompanying notes are an integral part of the financial statements

(English Translation of Parent-company-only Financial Statements Originally Issued in Chinese) FENG TAY ENTERPRISES CO., LTD.

Statements of Changes in Equity

For the Years Ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

Balance on 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 Other changes in capital surplus: Due to donated assets received Changes in ownership interests in subsidiaries Balance on December 31, 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 Other changes in capital surplus: Due to donated assets received Changes in ownership interests in subsidiaries Balance on December 31, 2025	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)	Total equity 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
			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) - - - -

The accompanying notes are an integral part of the financial statements

(English Translation of Parent-company-only Financial Statements Originally Issued in Chinese) FENG TAY ENTERPRISES CO., LTD.

Statements of Cash Flows

For the Years Ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

Cash flows from (used in) operating activities: Profit before tax Adjustments: Adjustments to reconcile profit (loss): Depreciation expenses Amortization expenses Interest expenses Interest income Share of profit of subsidiaries, associates and joint ventures accounted for using equity method Gain on disposal of property, plant and equipment Other items Total adjustments to reconcile profit (loss) Changes in operating assets and liabilities: Changes in operating assets: Decrease (increase) in accounts receivable Decrease (increase) in accounts receivable due from related parties Decrease (increase) in other receivables Decrease (increase) in inventories Decrease (increase) in other current assets Decrease (increase) in other current financial assets Total changes in operating assets Changes in operating liabilities: Increase (decrease) in notes payable Increase (decrease) in accounts payable Increase (decrease) in accounts payable to related parties Increase (decrease) in other payable Increase (decrease) in other current liabilities Increase (decrease) in net defined benefit liability 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 from (used in) investing activities: Acquisition of investments accounted for using equity method Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Acquisition of intangible assets Decrease (increase) in other non-current financial assets Decrease (increase) in other non-current assets Dividends received Net cash flows from investing activities Cash flows from (used in) financing activities: (Decrease) increase in short-term borrowings Proceeds from long-term borrowings Repayments of long-term debt Cash dividends paid Net cash flows used in financing activities Net (decrease) increase in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period	2025 $ 6,269,431 230,133 41,860 59,505 (11,890) (3,234,726) (13,225) (17,016) (2,945,359) (127,638) 514,173 (91,740) 10,197 35,803 - 340,795 (147,288) 179,788 (796,174) (278,893) 2,084 (3,940) (1,044,423) (703,628) (3,648,987) 2,620,444 11,808 (60,942) (102,559) 2,468,751 (316,158) (1,031,060) 97,605 (49,082) (20) 4,267 3,403,691 2,109,243 (125,000) 1,500,000 (1,500,000) (5,036,162) (5,161,162) (583,168) 1,329,471 $ 746,303	2024 7,145,210 223,916 38,330 48,251 (19,700) (2,819,656) (6,465) 41,307 (2,494,017) (90,905) (313,683) 10,576 19,677 22,406 20 (351,909) 44,419 114,085 1,058,204 293,898 200 (2,839) 1,507,967 1,156,058 (1,337,959) 5,807,251 19,636 (47,847) (2,113,781) 3,665,259 (698,265) (595,780) 30,276 (50,462) 818 (4,134) 2,276,738 959,191 340,000 1,500,000 (1,470,000) (4,246,176) (3,876,176) 748,274 581,197 1,329,471

The accompanying notes are an integral part of the financial statements

(English Translation of Parent-company-only Financial Statements Originally Issued in Chinese) FENG TAY ENTERPRISES CO., LTD.

Notes to the 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 Co., Ltd. (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, inline skates, ice skates, ski boots, cycling shoes, golf balls, soccer balls, backpack and handbags, 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.

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

These financial statements were authorized for issue 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 Company has initially adopted the following new amendments, which do not have a significant impact on its 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 Company 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 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)

FENG TAY ENTERPRISES CO., LTD. Notes to the 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 Company, 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 categories of Disclosure in Financial income and expenses, two income statement Statements” 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.

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

(Continued)

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

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

(a) Statement of compliance

These financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

(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 financial statements have been prepared on a historical cost basis.

(ii) Functional and presentation currency

The functional currency of the Company is determined based on the primary economic environment in which it 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.

(c) Foreign Currency
(i) Foreign currency transactions

Transactions in foreign currencies are translated into the respective functional currencies of Company 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 those differences relating to the following, which are recognized in other comprehensive income.

(Continued)

FENG TAY ENTERPRISES CO., LTD. Notes to the 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 Company 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 Company 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.

(d) Classification of current and non-current assets and liabilities

The Company 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 Company 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 Company 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)

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

(e) 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.

(f) Financial instruments

Trade receivables and debt securities issued are initially recognized when they are originated. All other financial assets and financial liabilities are initially recognized when the Company 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; Fair value through other comprehensive income (FVOCI) – debt investment; FVOCI – equity investment; or FVTPL. Financial assets are not reclassified subsequent to their initial recognition unless the Company 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)

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

2) Fair value through other comprehensive income (FVOCI)

On initial recognition of an equity investment that is not held for trading, the Company 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 Company’s right to receive dividend is established.

3) Impairment of financial assets

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

The Company measures allowances for crdit loss at an amount equal to lifetime 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 Company 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 Company’ s historical experience and informed credit assessment as well as forwardlooking information.

12-month ECL are the portion of ECL that result from default events that are possible within the 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).

The maximum period considered when estimating ECL is the maximum contractual period over which the Company is exposed to credit risk.

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 Company in accordance with the contract and the cash flows that the Company expects to receive). ECL are discounted at the effective interest rate of the financial asset.

(Continued)

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

At each reporting date, the Company 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 asset 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 overdue;
‧ 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 Company has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. For corporate customers, the Company 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 Company 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 Company’s procedures for recovery of amounts due.

4) Derecognition of financial assets

The Company 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 Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

The Company 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.

(Continued)

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

(ii) Financial liabilities

1) Other financial liabilities

Financial liabilities are not held-for-trading and are not designated as those measured at fair value through profit or loss (including length period loans, payables, and other payables), the original recognition is based on the fair value plus the directly attributable payment easy cost measurement; subsequent effective interest method is used to measure the cost after amortization. Interest not capitalized as the cost of assets expenses and foreign exchange gains and losses are recognized in profit and loss and listed under nonoperating income and expenses.

2) Derecognition of financial liabilities

The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. The Company 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 Company 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.

(g) 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.

(h) Investment in subsidiaries

The Company uses the equity method to evaluate an investee which is under control when preparing the financial statements. Under the equity method, the profit or loss and other comprehensive income shall be attributed to the owner of the parent on the basis of proportion of existing ownership interests. The Company’s equity in the financial statement shall be equal to the share attributed to the parent in the financial statement.

(Continued)

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

Changes in the Company’ s ownership interests in subsidiaries do not result in loss of control of subsidiaries are equity transactions with owners.

(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 Company has joint control of the arrangement (i.e. joint venturers) in which the Company has rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities. The Company 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 Company qualifies for exemption from that Standard.

When assessing the classification of a joint arrangement, the Company 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 Company reevaluates whether the classification of the joint arrangement has changed.

(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.

(Continued)

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

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 Company.

(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.

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	3 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 Company 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 Company 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.

(Continued)

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

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 Company’s incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate.

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 Company’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 modification

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 Company 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 Company 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.

(Continued)

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

The Company has elected not to recognize right-of-use assets and lease liabilities for leases of low-value assets. The Company 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.

(ii) Other intangible assets

Other intangible assets acquired by the Company 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: 3~5 years

The estimated useful lives and amortization method were reviewed at the end of the reporting period, and the change was accounted for as a change in accounting estimates.

(n) Impairment – non-financial assets

At each reporting date, the Company 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.

(Continued)

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

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
(i) Revenue from contracts with customers

Revenue is measured based on the consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer. The Company 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 Company’ s main types of revenue are explained below.

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 discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. 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 Company 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 Company has a right to an amount of consideration that is unconditional.

2) Financing components

The Company 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 Company does not adjust any of the transaction prices for the time value of money.

(p) Government grants

The Company recognizes an unconditional government grant 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 Company 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 Company 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.

(Continued)

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

(q) 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 Company’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 Company, 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 Company 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.

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 Company 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 Company 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.

(r) 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 Company 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.

(Continued)

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

The Company 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 Company 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 Company 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.

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 probability of future taxable profits improves.

Deferred taxes are measured at tax rates that are expected to be applied to temporary differences when they reverse, 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 Company 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.

(Continued)

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

(s) Earnings per share

The Company 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.

(t) Operating segments

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

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

In preparing these parent-company-only 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 Company’s risk management and climate-related commitments where appropriate. Revisions to estimates are recognized prospectively in the period of the change and future periods.

The Company has no accounting policies that involve significant judgments and information that has a significant impact on its financial report.

Regarding the uncertainties of assumptions and estimates, there were no significant risks that may result in major adjustments in the following year.

(6) Explanation of significant accounts:

(a) Cash and cash equivalents

Cash and cash equivalents
Cash Demand deposit and check deposit Foreign exchange deposits Cash and cash equivalents listed in the cash flow statement	December 31, 2025 $ 370 18,551 727,382 $ 746,303	December 31, 2024
		325 12,627 1,316,519
		1,329,471

Please refer to Note (6)(q) for the interest analysis and sensitivity analysis of the financial assets and liabilities of the Company.

(Continued)

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

(b) Accounts receivable (including related parties)

Accounts receivable due from non-related parties measured at amortized cost Accounts receivable due from related parties-measured at amortized cost Less: allowance for credit loss	December 31, 2025 $ 7,739,327 3,589,932 - $ 11,329,259	December 31, 2024
		7,611,689 4,104,105 -
		11,715,794

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

December 31, 2025	December 31, 2025
Gross carrying amount Weighted- average loss rate $ 9,650,669 0% 824,780 0% 207,789 0% 646,021 0% $ 11,329,259 December 31, 2024		Allowance for credit loss provision
		- - - -
		-

	Weighted- average loss rate 0% 0% 0% 0%	Allowance for credit loss provision
		- - - -
		-

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

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

(Continued)

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

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

(c) Inventories

Raw materials Work in process Finished goods Merchandise inventory Inventory in transit The details of the costs of sales were as follows: Cost of goods sold Technical service costs Inventory scrap loss Losses (reversal gains) on obsolescence and inventory valuation Net gains on inventories Total	December 31, 2025 $ 17,276 42,678 1,457 102,457 149 $ 164,017 2025 $ 73,557,060 82,221 33 (69) (1) $ 73,639,244	December 31, 2024 22,354 102,703 4,192 44,594 371 174,214 2024 76,908,961 85,389 77 104 (1) 76,994,530

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. In addition, when the factors causing the net realizable value of inventory to be lower than the cost is disappeared due to scrapping or disposal, the increase in the net realized value is recognized as a deduction in operating costs.

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

(d) Investments accounted for using equity method

A summary of the Company’s financial information for investments accounted for using the equity method at the reporting date is as follows:

Subsidiaries Joint ventures	December 31, 2025 $ 24,776,541 588,445 $ 25,364,986	December 31, 2024
		25,880,326 535,216
		26,415,542

(Continued)

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

(i) Subsidiaries

Please refer to the consolidated financial report for the year ended December 31, 2025.

(ii) Joint ventures

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

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

Individually insignificant joint venture	December 31, 2025 $ 588,445	December 31, 2024
		535,216

The Company’s share of the net income of associates was as follows:

Attributable to the Company: Profit from continuing operations Other comprehensive income (loss) Comprehensive income	2025 $ 74,478 (21,249) $ 53,229	2024
		66,227 32,690
		98,917

(iii) Collateral

As of December 31, 2025 and 2024, the investment accounted for using equity method of the Company was not pleaged as collaterals for its loans.

(e) Property, plant and equipment

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

Land	Buildings	Machinery and equipment	Computer and communication equipment	Testing equipment	Vehicles equipment	Office equipment	Other equipment	Equipment to be inspected and construction inprogress	Total
$ 1,210,526 252,961 49 -	2,557,529 23,247 3,824 -	1,103,043 175,353 80,005 (125,624)	146,604 20,544 15,474 (8,292)	115,367 2,493 2,466 (1,643)	38,415 678 - (131)	51,396 696 - (558)	81,211 2,709 - (145)	457,697 650,748 (101,818) -	5,761,788 1,129,429 - (136,393)
$ 1,463,536	2,584,600	1,232,777	174,330	118,683	38,962	51,534	83,775	1,006,627	6,754,824
$ 1,210,526 - - -	2,503,521 11,678 43,188 (858)	1,064,233 64,776 54,080 (80,046)	136,921 21,337 - (11,654)	121,169 3,483 853 (10,138)	36,870 4,586 - (3,041)	51,753 300 - (657)	78,189 3,503 - (481)	47,914 507,904 (98,121) -	5,251,096 617,567 - (106,875)
$ 1,210,526	2,557,529	1,103,043	146,604	115,367	38,415	51,396	81,211	457,697	5,761,788

(Continued)

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

Land	Buildings	Machinery and equipment	Computer and communication equipment	Testing equipment	Vehicles equipment	Office equipment	Other equipment	Equipment to be inspected and construction inprogress	Total
$ - - -	1,118,937 94,632 -	834,610 98,856 (41,422)	118,202 20,235 (8,246)	102,400 6,848 (1,545)	23,882 3,633 (111)	48,751 936 (547)	66,754 4,993 (142)	- - -	2,313,536 230,133 (52,013)
$ -	1,213,569	892,044	130,191	107,703	27,404	49,140	71,605	-	2,491,656
$ - - -	1,027,155 92,561 (779)	793,010 99,006 (57,406)	116,991 12,796 (11,585)	102,788 9,207 (9,595)	22,544 3,923 (2,585)	48,078 1,316 (643)	62,118 5,107 (471)	- - -	2,172,684 223,916 (83,064)
$ -	1,118,937	834,610	118,202	102,400	23,882	48,751	66,754	-	2,313,536
$ 1,463,536	1,371,031	340,733	44,139	10,980	11,558	2,394	12,170	1,006,627	4,263,168
$ 1,210,526	1,476,366	271,223	19,930	18,381	14,326	3,675	16,071	47,914	3,078,412
$ 1,210,526	1,438,592	268,433	28,402	12,967	14,533	2,645	14,457	457,697	3,448,252

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 Company has been constructing a new development center since the year 2023. As of December 31, 2025, the project was 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 Company were not pledged as collateral for its loans.

(f) Investment property

Book value: Balance on December 31, 2025 Balance on January 1, 2024 Balance on December 31, 2024 Fair value: Balance on December 31, 2025 Balance on December 31, 2024	Owned assets
	Land
	$ 6,858 $ 6,858 $ 6,858 $ 37,269 $ 37,269

(Continued)

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

Investment property was evaluated based on available public information and the area acquired on the transaction date, taking into consideration the condition and functions of the underlying asset, as well as the economy.

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

(g) Intangible assets

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

Cost:
Balance on January 1, 2025
Additions
Disposals
Balance on December 31, 2025
Balance on January 1, 2024
Additions
Disposals
Balance on December 31, 2024
Accumulated amortization and impairment losses
Balance on January 1, 2025
Amortization for the year
Disposals
Balance on December 31, 2025
Balance on January 1, 2024
Amortization for the year
Disposals
Balance on December 31, 2024
Carrying amounts:
Balance on December 31, 2025
Balance on January 1, 2024
Balance on December 31, 2024

Computer
software
$ 91,218
49,082
(37,117)
$
103,183
$ 72,889
50,462
(32,133)
$
91,218
$ 40,159
41,860
(37,117)
$
44,902
$ 33,962
38,330
(32,133)
$
40,159
$
58,281
$
38,927
$
51,059

(Continued)

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

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

Cost of sales Operating expenses Total	2025 $ 4,880 36,980 $ 41,860	2024
		2,306 36,024
		38,330

(h) Short-term borrowings

The details of the short-term loans of the Company were as follows:

Unsecured bank loans Range of interest rates	December 31, 2025 $ 1,875,000 1.70%~1.72%	December 31, 2024
		2,000,000
		1.70%~1.80%

(i) Long-term borrowings

The details of the long-term loans of the Company were as follows:

Unsecured bank loans Range of interest rates Expiration date	December 31, 2025 $ 1,500,000 1.88% 2027.06.26	December 31, 2024
		1,500,000
		1.95%
		2026.06.30

(j) Employee benefits

(i) Defined the benefit plan

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

Present value of the defined benefit obligations Fair value of plan assets Net defined benefit liabilities	December 31, 2025 $ 2,300,852 (1,999,138) $ 301,714	December 31, 2024 2,463,336 (1,940,030) 523,306

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.

(Continued)

FENG TAY ENTERPRISES CO., LTD. Notes to the 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 labor 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 the present value of the defined benefit obligations for the years ended December 31, 2025 and 2024 were as follows:

Defined benefit obligation on January 1 Current service cost and interest cost Remeasurement loss (gain): `－`Actuarial loss (gain) arising from experience `－`Actuarial gain arising from financial assumptions Benefits paid Defined benefit obligations on December 31	For the years ended December 31 2025 2024 $ 2,463,336 2,675,583 50,458 47,446 44,761 (81,436) (128,556) (68,873) (129,147) (109,384) $ 2,300,852 2,463,336
	2025 $ 2,463,336 50,458 44,761 (128,556) (129,147) $ 2,300,852

3) Movements of defined benefit plan assets

The movements in the present value of the defined benefit plan assets for the Company 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)

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

4) Expenses recognized in profit or loss

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

Current service cost Net interest of net liabilities for defined benefit obligations Operating costs Selling and administration expenses Research and development expenses	For the years ended December 31	For the years ended December 31
	2025 $ 8,524 8,987 $ 17,511 $ 2,809 5,384 9,318 $ 17,511	2024
		11,557 11,459
		23,016
		3,565 6,978 12,473
		23,016

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 % 1.625 % 1.750 % 4.000 % 5.000

The contribution to be made by the Company to the defined benefit plans within one year after the reporting date is $19,000 thousand.

The weighted-average lifetime of the defined benefits plans is 8.18 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% increase 0.25% decrease $ (36,946) 37,926 36,091 (35,310) (44,358) 45,580 43,152 (42,234)

(Continued)

FENG TAY ENTERPRISES CO., LTD. Notes to the 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 pension costs incurred from the contributions to the Bureau of the Labor Insurance amounted to $135,660 thousand and $130,616 thousand for the years ended December 31, 2025 and 2024, respectively.

(k) Income taxes

(i) Income tax expenses

The income tax expenses of the Company were as follows:

Current income tax expense Current period Adjustment for prior years Deferred income tax expense Origination and reversal of temporary differences Income tax expense	For the years ended December 31 2025 2024 $ 1,265,146 1,247,339 (8,588) (42,771) 1,256,558 1,204,568 (23,169) 71,104 $ 1,233,389 1,275,672
	2025 $ 1,265,146 (8,588) 1,256,558 (23,169) $ 1,233,389

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

Items that will not be reclassified subsequently to profit or loss: Remeasurement from defined benefit plans Items that may be reclassified subsequently to profit and loss: Exchange differences on translation of foreign financial statements	For the years ended December 31 2025 2024 $ (43,530) (63,438) $ 4,516 (6,332)
	2025 $ (43,530) $ 4,516

(Continued)

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

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

Profit before income tax Income tax using the Company’s domestic tax rate Others income tax adjustments Tax credit for foreign income Investment tax credit Changes in provision in prior periods Additional tax on undistributed earnings Income tax expenses	2025 $ 6,269,431 $ 1,253,886 6,297 (34,030) (78,683) (8,588) 94,507 $ 1,233,389	2024 7,145,210 1,429,042 16,103 (56,702) (70,000) (42,771) - 1,275,672

(ii) Deferred tax assets and liabilities

1) Recognized deferred tax assets and liabilities

The changes in deferred income 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 Balance on December 31, 2025 Balance on January 1, 2024 Debit (credit) on income statement Debit (credit) on other comprehensive income Balance on December 31, 2024 Deferred tax assets: Balance on January 1, 2025 (Debit) credit on income statement (Debit) credit on other comprehensive profit and loss Balance on December 31, 2025	Gains on foreign investment $ 3,029,606 (33,991) - $ 2,995,615 $ 2,979,188 50,418 - $ 3,029,606 Defined Benefit Plans $ 104,662 (789) (43,530) $ 60,343	Others 49,142 69,387 (4,516) 114,013 61,822 (19,012) 6,332 49,142 Other 89,652 59,354 - 149,006	Total 3,078,748 35,396 (4,516) 3,109,628 3,041,010 31,406 6,332 3,078,748 Total 194,314 58,565 (43,530) 209,349

(Continued)

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

Balance on January 1, 2024 (Debit) credit on income statement (Debit) credit on other comprehensive profit and loss Balance on December 31, 2024	Defined Benefit Plans $ 168,668 (568) (63,438) $ 104,662	Other 128,782 (39,130) - 89,652	Total 297,450 (39,698) (63,438) 194,314

(iii) Assessment of tax

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

(iv) Global Minimum Tax (GMT)

Some countries that the Company operates in have enacted new legislation to implement the global minimum top-up tax. The Company is closely monitoring developments related to the implementation of the international tax reforms introducing a global minimum top-up tax in the countries which it operates in. As of December 31, 2025, the application of this new tax law was accessed to have no material impact on the Company. The Company recognizes the supplemental tax as current income tax when it is actually incurred, and the Company applies the temporary mandatory relief from deferred tax related to the supplemental tax.

(l) 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.

(i) Capital surplus

The balances of capital surplus as of December 31, 2025 and 2024 were as follows:

December 31, 2025 Treasury shares $ 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

(Continued)

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

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) Retain earnings

The Company’ s Articles of Incorporation stipulated that 10% of annual net earnings, after deducting accumulated deficit, shall be set aside as legal reserve, and a special reserve shall be appropriated or reversed 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 for 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.

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 amount and the net reduction of other equity. Amounts of subsequent reversals pertaining to the net reduction of other shareholders’ equity shall qualify for additional distributions.

(Continued)

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

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:

For the years ended December 31	For the years ended December 31	For the years ended December 31
2024 Amount (dollar) Total $ 5.10 5,036,162	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 interests after tax

Balance on January 1, 2025 Exchange differences on translation of foreign financial statement Exchange differences on associates accounted for using equity method Balance on December 31, 2025 Balance on January 1, 2024 Exchange differences on translation of foreign financial statement Exchange differences on associates accounted for using equity method Balance on December 31, 2024	Exchange differences on translation of foreign financial statement
	$ 360,006 (1,173,772 (81,127 $ (894,893 $ (1,127,303 1,611,684 (124,375 $ 360,006

(Continued)

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

(m) Earnings per share

The calculation of the Company’s basic earnings per share of for 2025 and 2024 were as follows:

Basic earnings per share Profit attributable to ordinary shareholders of the Company Weighted-average number of ordinary shares outstanding Basic earnings per share (dollars)	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 adopted for the preceding three years.

(n) Revenue from contracts with customers
(i) Disaggregation of revenue

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 $ 61,017,277 3,460,079 4,558,428 2,219,972 1,578,434 1,248,755 827,518 102,188 1,815,228 $ 76,827,879 $ 76,827,879 - $ 76,827,879	Other segments 1,591,327 1,333,689 185,867 52,895 128,310 11,868 - 991 999,521 4,304,468 - 4,304,468 4,304,468	Total
		62,608,604 4,793,768 4,744,295 2,272,867 1,706,744 1,260,623 827,518 103,179 2,814,749
		81,132,347
		76,827,879 4,304,468
		81,132,347

(Continued)

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

Primary geographical markets Singapore America Switzerland Mexico Vietnam Mainland China India Italy Other countries Major product/service lines: Manufacturing and sale of footwear Others (ii) Contract balances Accounts receivable (including related parties) Less: allowance for credit loss Total	For the years ended December 31, 2024 Segments of footwear manufacturing and sales Other segments Total $ 65,561,038 1,963,850 67,524,888 3,864,640 1,127,571 4,992,211 3,782,514 458 3,782,972 2,034,428 71,427 2,105,855 1,716,849 197,555 1,914,404 1,566,377 10,262 1,576,639 921,223 - 921,223 125,576 1,109 126,685 1,446,733 910,614 2,357,347 $ 81,019,378 4,282,846 85,302,224 $ 81,019,378 - 81,019,378 - 4,282,846 4,282,846 $ 81,019,378 4,282,846 85,302,224 December 31, 2025 December 31, 2024 January 1, 2024 $ 11,329,259 11,715,794 11,319,178 - - (7,972) $ 11,329,259 11,715,794 11,311,206	For the years ended December 31, 2024 Segments of footwear manufacturing and sales Other segments Total $ 65,561,038 1,963,850 67,524,888 3,864,640 1,127,571 4,992,211 3,782,514 458 3,782,972 2,034,428 71,427 2,105,855 1,716,849 197,555 1,914,404 1,566,377 10,262 1,576,639 921,223 - 921,223 125,576 1,109 126,685 1,446,733 910,614 2,357,347 $ 81,019,378 4,282,846 85,302,224 $ 81,019,378 - 81,019,378 - 4,282,846 4,282,846 $ 81,019,378 4,282,846 85,302,224 December 31, 2025 December 31, 2024 January 1, 2024 $ 11,329,259 11,715,794 11,319,178 - - (7,972) $ 11,329,259 11,715,794 11,311,206
	Segments of footwear manufacturing and sales $ 65,561,038 3,864,640 3,782,514 2,034,428 1,716,849 1,566,377 921,223 125,576 1,446,733 $ 81,019,378 $ 81,019,378 - $ 81,019,378 December 31, 2025 $ 11,329,259 - $ 11,329,259	Other segments 1,963,850 1,127,571 458 71,427 197,555 10,262 - 1,109 910,614 4,282,846 - 4,282,846 4,282,846 December 31, 2024 11,715,794 - 11,715,794

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

(o) 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.

(Continued)

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

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 thausand 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.

(p) Non-operating income and expenses
(i) Interest income

The details of the Company’s interest income for 2025 and 2024 were as follows:

Interest income from bank deposits	For the years ended December 31	For the years ended December 31
	2025 $ 11,890	2024
		19,700

(ii) Other income

The details of the Company’s other income for 2025 and 2024 were as follows:

Rent income Others	For the years ended December 31	For the years ended December 31
	2025 $ 3,072 281,896 $ 284,968	2024
		3,130 251,227
		254,357

(iii) Other gains and losses

The details of the Company’s other gains and losses for 2025 and 2024 were as follows:

Foreign exchange (losses) gains, net Gains on disposal of property, plant and equipment Others	For the years ended December 31 2025 2024 $ (51,874) 726,206 13,225 6,465 (186) (105) $ (38,835) 732,566
	2025 $ (51,874) 13,225 (186) $ (38,835)

(Continued)

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

(iv) Financial costs

The details of the Company’s financial cost for 2025 and 2024 were as follows:

Interest expenses	For the years ended December 31	For the years ended December 31
	2025 $ 59,505	2024
		48,251

(q) Financial instruments

(i) Categories of financial instruments

Financial Assets

Financial assets measured at amortized cost: Cash and cash equivalents Accounts receivable Other receivables Other financial assets (current and non-current assets) Total Financial Liabilities Financial liabilities measured at amortized cost: Short-term borrowings Long-term borrowings Notes payable Accounts payable Other payables Total	December 31, 2025 $ 746,303 11,329,259 142,772 241 $ 12,218,575 December 31, 2025 $ 1,875,000 1,500,000 380,119 6,778,255 1,010,753 $ 11,544,127	December 31, 2024
		1,329,471 11,715,794 47,513 221
		13,092,999
		December 31, 2024
		2,000,000 1,500,000 527,407 7,394,641 1,358,666
		12,780,714

(ii) Credit risks

1) Credit risk exposure

The carrying amount of financial assets represents the maximum amount exposed to credit risk.

2) The concentration of credit risk

The Company's outstanding accounts receivable mainly came from foreign customer and subsidiaries. For the years ended December 31, 2025 and 2024, one of the Company’s customers accounted for 48% and 47%, respectively, of the Company’ s net revenue. There was no other significant concentration of credit risk.

(Continued)

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

(iii) Liquidity risk

The following table shows the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting agreements.

December 31, 2025 Non-derivative financial liabilities Notes payable Accounts payable Other payables Unsecured bank loans December 31, 2024 Non-derivative financial liabilities Notes payable Accounts payable Other payables Unsecured bank loans	Carrying amount $ 380,119 6,778,255 1,010,754 3,375,000 $ 11,544,128 $ 527,407 7,394,641 1,358,666 3,500,000 $ 12,780,714	Contractual cash flows 380,119 6,778,255 1,010,754 3,418,429 11,587,557 527,407 7,394,641 1,358,666 3,546,617 12,827,331	Within 6 months 380,119 6,778,255 1,010,754 1,890,615 10,059,743 527,407 7,394,641 1,358,666 2,017,447 11,298,161	6 to 12 months - - - 14,216 14,216 - - - 14,745 14,745	1 to 2 years - - - 1,513,598 1,513,598 - - - 1,514,425 1,514,425	2 to 5 years - - - - - - - - - -	Over 5 years
							- - - -
							-
							- - - -
							-

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

(iv) Currency risks

1) Exposure to foreign currency risk

The Company’s significant exposure to foreign currency risk was as follows:

Fi	D	ecember 31, 2025	D	ecember 31, 2024
	Foreign currency (In thousands) $ 388,173 808,317 204,459	Exchange rate 31.380 31.380 31.480	Foreign currency (In thousands) 399,073 806,951 213,332	Exchange rate TWD 32.735 13,063,669 32.735 26,415,542 32.835 7,004,756
Fi

2) Sensitivity analysis

The Company’ 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, accounts payables and other payables denominated in foreign currency. An appreciation (depreciation) of 5% of the TWD against the USD for the years ended December 31, 2025 and 2024, would have decreased or increased net profit before tax by $287,225 thousand and $302,946 thousand, respectively. Performed based on the same basis, the analysis of both periods assumed that all other variables remained constant.

(Continued)

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

3) Foreign exchange gain and loss on monetary items

The Company’s realized and unrealized gains or losses from foreign currency exchange in 2025 and 2024 are losses $51,874 thousand and gains $726,206 thousand, respectively. Due to the large number of foreign currency transactions, it is not possible to disclose exchange gains and losses separately by foreign currencies with material impacts.

(v) Interest rate analysis

Please refer to the notes on liquidity risk management and interest rate exposure of the Company’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 Company’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 had increased or decreased by 50 basis points, with all other variable factors remaining constant, the Company’s net profit after tax would have decreased or increased by $10,590 thousand and $8,734 thousand for the years ended December 31, 2025 and 2024, respectively. This was mainly due to the Company’s deposits and borrowings at variable rates.

(vi) Fair value information

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

(r) Financial risk management
(i) Overview

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

1) credit risk
2) liquidity risk
3) market risk

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

(Continued)

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

(ii) Structure of risk management

The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework, with internal auditors continuously reviewing the compliance with policies, and regularly reporting the results to the Board of Directors.

The Company’ s risk management policies are established to identify and analyze the risks faced by the Company, 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 Company’s activities. The Company, 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 Company Audit Committee oversees how management monitors compliance with the Company’ s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Company 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 Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers and investments in securities.

1) Trade and other receivables

Exposure to credit risk of the Company is mainly affected by the condition of each customer. However, the management also considers the demographics of the Company’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 Company’s standard payment and delivery terms and conditions are offered. The Company’s review includes external ratings, when available, and, in some cases, bank references. Purchase limits are established for each customer, and these limits are reviewed periodically. Customers that fail to meet the Company’s benchmark credit rating may transact with the Company only on a prepayment basis.

In monitoring the credit risk of the customers, the Company 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 Company’s accounts receivable and other receivables were mainly due from subsidiaries of the Group. Customers rated as high risk are classified as restricted customers and monitored, and those customers may transact with the Company only on a prepayment basis in the future.

(Continued)

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

The Company 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.

2) Investment

The credit risk exposure for the bank deposits, investments with fixed income and other financial instruments are measured and monitored by the Company’s finance department. The Company only deals with banks, other external parties, corporate organizations, government agencies and financial institutions with good credit rating. The Company 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 Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it always has sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’ s reputation.

The Company aims to maintain the level of its cash and cash equivalents at an amount in excess of expected cash flows on financial liabilities (other than trade payables) over the succeeding 60 days. The Company also monitors the level of expected cash outflows on account 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 $5,625,000 thousand and $6,000,000 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 Company’ 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 Company is exposed to currency risk on sales, purchases and borrowings that are denominated in a currency other than the functional currencies of the Company. The currencies used in these transactions are denominated in TWD and USD.

(Continued)

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

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 Company, primarily TWD. This provided an economic hedge without derivatives being entered into, and therefore, hedge accounting was not applied in these circumstances.

In respect of other monetary assets and liabilities denominated in foreign currencies, the Company 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 Company’s risk exposure on 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.

3) Other market price risks

The Company did not enter into any commodity contracts for purposes other than to meeting the Company’s expected usage and sales requirements; such contracts are not settled on a net basis.

(s) Capital management

The Company’s objectives for managing capital to safeguard the capacity to continue to operate, to continue to provide a return to its shareholders, to maintain the interest of 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 Company 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 debt to capital ratios on the reporting dates were as follows:

Total liabilities Less: cash and cash equivalents Net debt Total equity Total capital Debt-to-capital ratio on December 31	December 31, 2025 $ 16,755,040 (746,303) 16,008,737 25,804,493 $ 41,813,230 % 38.29	December 31, 2024 16,986,251 (1,329,471) 15,656,780 26,840,051 42,496,831 % 36.84

(Continued)

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

(t) Investing and financing activities not affecting current cash flow

The Company’s investing and financing activities which did not affect the current cash flow in the years ended December 31, 2025 and 2024.

Reconciliation of liabilities arising from financing activities was as follows:

Long-term borrowings Short-term borrowings Total liabilities from financing activities Long-term borrowings Short-term borrowings Total liabilities from financing activities	January 1, 2025 $ 1,500,000 2,000,000 $ 3,500,000 January 1, 2024 $ 1,470,000 1,660,000 $ 3,130,000	Cash flows - (125,000) (125,000) Cash flows 30,000 340,000 370,000	Non-cash	changes Foreign exchange movement - - - changes Foreign exchange movement - - -	December 31, 2025
			Others - - - Non-cash
					1,500,000 1,875,000
					3,375,000
					December 31, 2024
			Others - - -
					1,500,000 2,000,000
					3,500,000

(7) Related-party transactions:

(a) Name of related parties and relationship

The followings are entities and subsidiaries that had transactions with the Company during the periods covered in the financial statements:

Name of related party	Relationship with the Company
PT Feng Tay Indonesia Enterprises	Subsidiary
Growth Link Overseas Company Limited	`〞`
Great Eastern Industries Limited	`〞`
PT Rich Valley Indonesia	`〞`
Great South Private Limited	`〞`
India Tindivanam Footwear Private Limited	`〞`
VX Holdings Limited	Indirect subsidiary
Dona Orient Holdings Limited	`〞`
Fujian Da Feng Holdings Company Limited	`〞`
Fujian Lifeng Footwear Industrial Development	`〞`
Company Limited
Fujian Xiefeng Footwear Company Limited	`〞`
Fujian San Feng Footwear Company Limited	`〞`

(Continued)

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

Name of related party	Relationship with the Company
Fujian Great Hope Footwear Company Limited	Indirect subsidiary
Fujian Putian Xie Feng Mold Company Limited	`〞`
Suzhou Yufeng Plastics Technology Co., Ltd.	`〞`
Fujian Wu Feng Department Store Co., Ltd.	`〞`
Dona Pacific Holdings Limited	`〞`
VX Mold Company Limited	`〞`
Lotus Footwear Enterprises Private Limited	`〞`
Lotus Footwear Enterprises Private Limited	`〞`
(India Branch)
Dona Victor Footwear Co., Ltd.	`〞`
Vietnam Dona Orient Co., Ltd.	`〞`
Vietnam Dona Standard Footwear Co., Ltd.	`〞`
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	`〞`
East Wind Footwear Company Limited (India	`〞`
Branch)
Fairway Enterprises Company Limited	`〞`
Fairway Enterprises Company Limited (India	`〞`
Branch)
Shoe Majesty Co., Ltd.	A joint venture under the Company’s joint
	arrangement
Vietnam Shoe Majesty Co., Ltd.	`〞`
Hong Kong Shoe Majesty Trading Co., Ltd.	`〞`
PT Shoe Majesty Indonesia	`〞`

(Continued)

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

(b) Significant transactions with related parties

(i) Operating revenue

1) Sales revenue

The Company sold raw materials and equipment for producing footwear and sports kit to related parties, and the significant sales amounts were as follows:

Subsidiaries Vietnam Dona Orient Co., Ltd. India Tindivanam Footwear Private Limited Other subsidiaries	For the years ended December 31	For the years ended December 31
	2025 $ 797,525 161,457 2,280,459 $ 3,239,441	2024
		810,625 492,765 2,548,658
		3,852,048

When the Company prepared its individual financial report, the sales revenue generated from the sales of raw materials to the subsidiaries and the operating costs of the goods purchased from the subsidiaries were reversed due to repeated purchases and sales. The amounts eliminated during 2025 and 2024 were $18,833,552 thousand and $18,730,612 thousand, respectively.

The Company also paid compensation expenses to subsidiaries arising from the above sales transactions, which amounted to $237,854 thousand and $236,837 thousand for the years ended December 31, 2025 and 2024, respectively.

The trading terms above were between O/A 15 days to O/A 120 days. The selling prices were determined through negotiations and there were no other comparable transactions with non- related parties.

2) Technical service income

The Company provided technical support for producing footwear and sports kits along with management services for the following related parties, and collected technical service fees from them.

Subsidiaries Vietnam Dona Orient Co., Ltd. Fujian Putian Xie Feng Mold Company Limited Fujian San Feng Footwear Company Limited Vietnam Dona Standard Footwear Co., Ltd. Fujian Lifeng Footwear Industrial Development Company Limited Fujian Xiefeng Footwear Company Limited Other subsidiaries	For the years ended December 31	For the years ended December 31
	2025 $ 143,949 86,651 79,190 74,513 47,011 43,045 86,081 $ 560,440	2024
		168,703 73,933 61,545 66,252 58,033 66,122 85,493
		580,081

(Continued)

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

(ii) Purchases

The Company’s purchases from related parties included finished shoes, sporting goods, and a small amount of raw materials. The respective amounts were as follows:

Subsidiaries Vietnam Dona Standard Footwear Co., Ltd. Dona Victor Footwear Co., Ltd. Dona Pacific (Vietnam) Co., Ltd. Other subsidiaries	For the years ended December 31	For the years ended December 31
	2025 $ 12,483,935 5,976,653 5,355,413 28,730,708 $ 52,546,709	2024
		13,586,750 6,151,750 5,799,978 30,236,324
		55,774,802

The payment terms for purchases listed above ranged from FCR 10 days to FCR 60 days. The purchase price was determined through negotiations, and there were no other comparable non related party transactions.

(iii) Other transactions

During 2025 and 2024, the Company paid service fee to its subsidiaries for investment and management consulting services, amounting to $164,578 thousand and $175,198 thousand.

During 2025 and 2024, the Company paid service fee to its subsidiaries for international trade consulting services, amounting to $54,888 thousand and $58,003 thousand.

During 2025 and 2024, the Company received from subsidiaries for equipment maintenance, amounting to $2,367 thousand and $1,415 thousand, respectively.

(Continued)

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

(iv) Receivables due from related parties

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

Account item Accounts receivable Other receivables	Category of related party Subsidiaries India Tindivanam Footwear Private Limited Lotus Footwear Enterprises Private Limited (India Branch) Vung Tau Orient Co., Ltd. East Wind Footwear Company Limited (India Branch) PT Feng Tay Indonesia Enterprises Vietnam Dona Standard Footwear Co., Ltd. Other Subsidiaries Subsidiaries Fairway Enterprises Company Limited (India Branch) Other subsidiaries	December 31, 2025 $ 733,504 637,746 460,994 404,775 295,622 79,876 977,415 128,797 142 $ 3,718,871	December 31, 2024
			433,547 602,668 311,052 343,464 478,643 809,179 1,125,552 8,511 805
			4,113,421

(v) Payables to related parties

The payables due to related parties were as follows:

Account item	Category of related party	December 31, 2025 $ 1,106,891 632,718 632,432 572,730 2,181,420 22,523 $ 5,148,714	December 31, 2024
Accounts payable Other payables	Subsidiaries Vietnam Dona Standard Footwear Co., Ltd. Dona Victor Footwear Co., Ltd. Vietnam Dona Orient Co., Ltd. PT Feng Tay Indonesia Enterprises Other subsidiaries Subsidiaries		1,284,223 798,738 593,477 357,256 2,888,671 57,704
			5,980,069

(vi) Investments accounted for using equity method

On August 12, 2021, the Board of Directors resolved to establish a subsidiary, Great South Private Limited, with a capital increase of $2,429 thousand in 2024, totaling $37,946 thousand that represented 1,700 shares and a shareholding of 100%.

(Continued)

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

On November 12, 2021, the Board of Directors resolved to establish a subsidiary, India Tindivanam Footwear Private Limited, with an investment of $695,836 thousand in 2024 and a capital increase of $316,158 thousand in 2025, totaling $2,064,338 thousand that represented 548,804,047 shares and a shareholding of 96.49%.

(vii) Property transactions
1) Disposal of property, plant, and equipment

The disposals of property, plant and equipment to related parties are summarized as follows:

Related party category	For the years ended December 31	For the years ended December 31	For the years ended December 31
	2025 Disposal price Gain on disposal $ 97,482 13,842	2024
	Disposal price $ 97,482	Disposal price 29,249	Gain on disposal
Subsidiaries			7,466

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 $ 194,110 406 $ 194,516	2024
		232,669 569
		233,238

(8) Pledged assets:

The book values of pledged assets were as follows:

Pledged assets	Object	December 31, 2025 $ 241	December 31, 2024
Other non-current financial assets	Customs deposit and lease deposit		221

(9) Commitments and contingencies:

(a) As of December 31, 2025 and 2024, the Company had issued promissory notes for short-term and long-term borrowings of $6,500,000 thousand and $7,000,000 thousand, respectively.
(b) As of December 31, 2025 and 2024, the Company had payables in respect of important construction contracts, amounting to $642,514 thousand and $1,084,640 thousand, respectively.

(10) Losses due to major disasters: None

(11) Subsequent events: None

(Continued)

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

(12) Others:

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 Director compensation Other employee benefits Depreciation Amortization	$ 492,203 45,635 19,957 - 10,398 53,552 4,880	2,808,602 228,089 133,214 106,616 52,385 176,581 36,980	3,300,805 273,724 153,171 106,616 62,783 230,133 41,860	487,279 42,163 18,873 - 11,766 50,936 2,306	3,038,831 216,632 134,759 120,756 60,709 172,980 36,024	3,526,110 258,795 153,632 120,756 72,475 223,916 38,330

Additional information on the number of employees and employee benefit expenses for the years ended December 31, 2025 and 2024 were as follows:

Number of employees Number of directors who were not employees Average employee benefit Average salary and wage Average adjustment of employee salary and wage Supervisor compensation

The Company’s compensation policy (for directors, executives, and employees) is as follows:

(a) Pursuant to the Articles of Incorporation of the Company, director compensation shall be authorized by the Board of Directors according to the Compensation Committee’s evaluation and the general pay level in the industry. If there is profit during the year, a minimum of 2% shall be allocated as employee compensation and a maximum of 1.8% as director compensation. Profit is defined as net profit before deducting tax and the compensation to employees and directors.
(b) Compensation to executive officers, including monthly salary, year end bonus, and performance bonus, is either stipulated by the Company’s "Staff Salary Standards", "Regulations Governing Year end Bonus", and "Regulations Governing Performance Bonus", or determined with reference to the general pay level in the industry, subsequent to which the amount shall be evaluated by the Compensation Committee, and finally be proposed to the Board of Directors.
(c) Employee compensation is distributed in accordance with the Company’s "Staff Salary Standards", "Performance and Salary Appraisal Standards", and the incentive plan for various bonuses.

(Continued)

FENG TAY ENTERPRISES CO., LTD. Notes to the 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 Company 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 with terms different from others	Transactions with terms different from 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%) -	- - - - - - - - - - - - - - - - - -

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

Name of company	Related party	Nature of relationship		Transaction details	Transaction details		Transactions with terms different from others	Transactions with terms different from 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.	Parent and subsidiary `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` Associate Subsidiary and parent `〞` Subsidiary and parent `〞` Associate `〞` Subsidiary and parent Associate `〞` Subsidiary and parent Associate `〞` Subsidiary and parent	Purchase Sale Purchase Sale Purchase Sale Purchase Sale Purchase Sale Purchase Sale Purchase Sale Sale Purchase Sale Purchase `〞` `〞` Sale `〞` `〞` Purchase `〞` `〞` Sale	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	- 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%	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	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)	- 1% (4%) 1% (9%) 1% (9%) 1% (15%) 4% (2%) 2% (1%) 58% 100% (62%) 58% (32%) (18%) (5%) 75% 7% - (18%) (3%) (1%)	- - - - - - - - - - - - - - - - - - - - - - - - -
							`〞`	-	2,552	1%	-

`〞`.	`〞`	`〞`	Purchase	482,354	31%	90 days	`〞`	-	(63,930)	(52%)	-
`〞`	Fujian Xiefeng	Associate	`〞`	139,579	9%	15~20 days	`〞`	-	(769)	(1%)	-
	Footwear Company Limited

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

Name of company	Related party	Nature of relationship		Transaction details	Transaction details		Transactions with terms different from others	Transactions with terms different from 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 Feng Tay Enterprises Co., Ltd.	Associate	Purchase	123,241	8%	10~15 days	Selling price of	-	(628)	(1%)	-
		Subsidiary and parent	Sale	1,050,077	99%	60 days	goods was determined through negotiations and there were no other transactions with non-related parties to compare with.
							`〞`	-	128,209	99%	-

`〞`	`〞`	`〞`	Purchase	106,827	23%	15 days	`〞`	-	(4,046)	(7%)	-
`〞`	Fujian Putian Xie	Associate	`〞`	135,480	28%	10~60 days	`〞`	-	(26,488)	(47%)	-
Fujian Putian Xie Feng Mold Company Limited	Feng Mold Company Limited Fujian Xiefeng Footwear Company Limited	Associate	Sale	111,370	14%	10~15 days
							`〞`	-	3,135	6%	-

`〞`	Fujian Lifeng	`〞`	`〞`	136,692	18%	10~15 days	`〞`	-	5,883	11%	-
	Footwear Industrial Development
`〞`	Fujian Great Hope	`〞`	`〞`	135,480	17%	10~60 days	`〞`	-	26,488	48%	-
	Footwear Company Limited
`〞`	Fujian San Feng	`〞`	`〞`	123,241	16%	10~15 days	`〞`	-	628	1%	-
	Footwear Company Limited
`〞`	Feng Tay Enterprises	Subsidiary	`〞`	198,786	26%	30 days	`〞`	-	18,251	33%	-
Suzhou Yufeng Plastics Technology Co., Ltd. Dona Victor Footwear Co., Ltd.	Co., Ltd. Feng Tay Enterprises Co., Ltd. Feng Tay Enterprises Co., Ltd.	and parent Subsidiary and parent Subsidiary and parent	Purchase Sale	213,796 7,155,409	75% 100%	15 days 30 days
							`〞`	-	(41,076)	(84%)	-

							`〞`	-	632,718	100%	-

`〞`	`〞`	`〞`	Purchase	1,221,329	68%	30 days	`〞`	-	(70,006)	(19%)	-
`〞`	Dona Pacific	Associate	`〞`	149,374	8%	60 days	`〞`	-	(13,138)	(4%)	-
	(Vietnam) Co., Ltd.
`〞`	Dona Victor Molds	`〞`	`〞`	226,735	13%	`〞`	`〞`	-	(29,643)	(8%)	-
	Mfg Co., Ltd.
`〞`	Vietnam Dona	`〞`	`〞`	103,118	6%	`〞`	`〞`	-	(9,928)	(3%)	-
Dona Pacific (Vietnam) Co., Ltd.	Standard Footwear Co., Ltd. Feng Tay Enterprises Co., Ltd.	Subsidiary and parent	Sale	6,887,602	94%	15 days
							`〞`	-	288,154	89%	-

`〞`	Vietnam Dona Orient	Associate	`〞`	175,463	2%	60 days	`〞`	-	12,614	4%	-
	Co., Ltd.
`〞`	Vietnam Dona	`〞`	`〞`	138,368	2%	`〞`	`〞`	-	9,168	3%	-
	Standard Footwear Co., Ltd.
`〞`	Dona Victor	`〞`	`〞`	149,374	2%	`〞`	`〞`	-	13,138	4%	-
	Footwear Co., Ltd.
`〞`	Feng Tay Enterprises	Subsidiary	Purchase	1,679,617	73%	30 days	`〞`	-	(66,896)	(22%)	-
Vietnam Dona Orient Co., Ltd.	Co., Ltd. Feng Tay Enterprises Co., Ltd.	and parent Subsidiary and parent	Sale	6,094,739	73%	30 days
							`〞`	-	632,432	74%	-

`〞`	`〞`	`〞`	Purchase	2,550,559	64%	30 days	`〞`	-	(154,012)	(39%)	-
`〞`	Vietnam Dona	Associate	`〞`	129,774	3%	60 days	`〞`	-	(9,662)	(2%)	-
	Standard Footwear Co., Ltd.
`〞`	Dona Pacific	`〞`	`〞`	175,463	4%	`〞`	`〞`	-	(12,614)	(3%)	-
	(Vietnam) Co., Ltd.
`〞`	Dona Victor Molds	`〞`	`〞`	170,896	4%	`〞`	`〞`	-	(28,495)	(7%)	-
Dona Victor Molds Mfg Co., Ltd. `〞` `〞`	Mfg. Co., Ltd. Dona Victor Footwear Co., Ltd. Vietnam Dona Orient Co., Ltd. Vietnam Dona Standard Footwear Co., Ltd.	Associate `〞` `〞`	Sale `〞` `〞`	226,735 170,896 288,157	28% 21% 36%	60 days `〞` `〞`	`〞` `〞` `〞`	- - -	29,643 28,495 24,973	31% 30% 26%	- - -

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

Name of company	Related party	Nature of relationship		Transaction details	Transaction details		Transactions with terms different from others	Transactions with terms different from 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: The above-mentioned transactions between related parties included repeated sales and purchases.

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	- - -

FENG TAY ENTERPRISES CO., LTD. Notes to the 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 1 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: As the amount primarily relates to other receivables, it is not applicable for the calculation of turnover days. Note 2: The above-mentioned transactions between related parties included repeated sales and purchases.

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

(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)
Name of investor	Name of investee	Location	Main businesses and products	Original investment amount		Balance as of December		31, 2025	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 `〞` `〞` `〞` `〞` `〞`	PT Feng Tay Indonesia Enterprises PT Rich Valley Indonesia Growth-Link Overseas Company Limited VX Holdings Limited Shoe Majesty Co., Ltd. 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	Indonesia `〞` Bermuda British Virgin Islands `〞` `〞` Hong Kong Singapore India British Virgin Islands `〞` `〞` `〞` `〞` Singapore (Note 8)	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 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	1,324,722 1,063,389 5,521,531 446,117 203,466 1,529,928 30,358 37,946 2,064,338 15,715 298,354 391,440 252,461 2,066,298 2,135,095	1,324,722 1,063,389 5,521,531 446,117 203,466 1,529,928 30,358 37,946 1,748,180 15,715 298,354 391,440 252,461 2,066,298 2,135,095	53,999 519,990 6,000,000 38,280 6,120 44,753 1,000 1,700 548,804,047 372,000 36,342 23,000 8,580 64,483 34,020	99.99% 99.99% 100.00% 47.26% 20.40% 40.97% 100.00% 100.00% 96.49% 93.00% 44.87% 92.00% 28.60% 59.03% 88.00%	1,036,561 1,125,422 16,472,905 843,848 588,445 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	(69,057) (7,222) 2,723,610 354,456 365,090 1,587,133 4,143 4,823 (325,591) 225,876 354,456 440,099 365,090 1,587,133 500,921	(69,055) (7,222) 2,723,610 167,516 74,478 650,248 4,143 4,823 (313,815) 210,065 159,033 404,891 104,416 936,885 440,811	Subsidiary (Note 5) `〞` `〞` `〞` Investee under the equity method 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) `〞`

FENG TAY ENTERPRISES CO., LTD. Notes to the 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	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
Growth- Link Overseas Company Limited `〞` `〞` VX Holdings Limited Dona Orient Holdings Limited `〞` `〞` `〞` VX Mold Company Limited Dona Pacific 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. 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	Indonesia `〞` India Vietnam Vietnam `〞` `〞` `〞` Vietnam Vietnam India 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 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 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	22 22 - 1,034,045 1,380,720 2,375,466 1,136,685 1,945,560 97,278 627,600 3,762,260 492,524 1,359,525	22 22 - 1,035,045 1,380,720 2,375,466 1,136,685 1,945,560 97,278 627,600 3,762,260 513,716 1,436,994	10 1 1 Note 4 Note 4 `〞` `〞` `〞` Note 4 Note 4 117,999,999 9,751 29,501	0.01% 0.01% 0.01% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 99.99% 100.00% 100.00%	22 20 - 1,821,082 2,644,027 5,142,017 1,125,842 1,340,930 349,346 1,682,274 2,801,374 973,941 1,549,843	(7,222) (69,057) 17,080 355,304 774,692 810,685 105,599 (102,861) 226,595 440,839 17,080 211,050 195,978	- (2) - 355,304 774,692 810,685 105,599 (102,861) 226,595 440,839 17,080 211,050 195,978	Investee under the equity method (Note 5) `〞` `〞` Subsidiary (Note 5) Subsidiary (Note 5) `〞` `〞` `〞` Subsidiary (Note 5) Subsidiary (Note 5) Subsidiary (Note 5) `〞` `〞`
Note 1: Includes overseas undertakings inv Note 2: Carrying value refers to ending adjustments. Note 3: Based on the unreviewed financial Note 4: Unissued shares of the Vietnamese			ested by the Company balance of investment statements as of Dece entities.	and re-invest recognized mber 31, 202	ment of the overseas undertakings. using the equity method, including invest 5.			ment gains or	losses, and	cumulative t	ranslation

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.

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

(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)
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	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 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.	Wholesale and retail of general merchandise, and related services. Manufacturing and repair of molds, cutting dies, shoe lasts, injections, and processing of metal parts. 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.	141,210 94,140 470,700 470,700 847,260 249,471 470,700 80,419	Note 1 `〞` `〞` `〞` `〞` `〞` Note 2 `〞`	171,949 150,727 177,995 284,797 878,995 420,005 - -	- - - - - - - -	- - - - - - - -	171,949 150,727 177,995 284,797 878,995 420,005 - -	149,502 125,861 214,332 (17,049) 421,419 88,875 140,361 69,508	50.00% 50.34% 77.50% 68.00% 70.00% 84.73% 70.00% 66.07%	74,751 63,352 166,107 (11,593) 294,993 75,308 98,253 45,921	104,171 184,387 702,521 407,467 1,939,465 370,107 485,381 191,238	105,314 1,417,881 1,165,699 1,118,557 7,041,311 796,070 - -

Upper limit on investment in Mainland China	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 locate Note 2: Investment in companies in Mainland Chin	d in Mainland China through an existing company registered in the third region. a through the existing companies registered in Mainland China.

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

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”.

(14) Segment information

Please refer to the consolidated financial statements for the year ended December 31, 2025.

FENG TAY ENTERPRISES CO., LTD.

STATEMENT OF CASH AND CASH EQUIVALETNTS

December 31, 2025

(In thousands of New Taiwan Dollars)

Item			Description	Description				Amount
Cash	Petty cash						$	370
Bank savings	Check deposit							18,540
	Demand deposit							11
	Foreign exchange	deposit	( EUR	80	thousand @	36.70 )		2,944
	Foreign exchange	deposit	( USD23,086		thousand @	31.380 )		724,438
							$	746,303
	STATEMENT OF ACCOUNTS				RECEIVABLE
Client Name		Description			Amount			Note
Company A		Payment		$	5,489,915
Company B		"			1,619,643
Others		"			629,769		The amount of individual
							client included in others
							does not	exceed 5% of the
							account	balance.
Sub-total					7,739,327
Less: Allowance for credit loss					-
`T`otal				$	7,739,327

FENG TAY ENTERPRISES CO., LTD.

STATEMENT OF ACCOUNTS RECEIVABLE DUE FROM RELATED PARTIES

December 31, 2025

(In thousands of New Taiwan Dollars)

Client Name	Description	Amount Note $ 733,504 637,746 460,994 404,775 295,622 271,427 207,136 578,728 The amount of individual client included in others does not exceed 5% of the account balance. $ 3,589,932
India Tindivanam Footwear Private Limited Lotus Footwear Enterprises Private Limited (India Branch) Vung Tau Orient Co., Ltd. East Wind Footwear Company Limited (India Branch) P. T. Feng Tay Indonesia Enterprises Fairway Enterprises Company Limited (India Branch) Vietnam Nam Ha Footwear Company Limited Others	Payment " " " " " " "

FENG TAY ENTERPRISES CO., LTD.

STATEMENT OF INVENTORY

December 31, 2025

(In thousands of New Taiwan Dollars)

Items	Amounts Cost Net realizable value Note $ 17,339 17,276 42,678 42,678 1,457 1,457 102,457 102,457 149 149 164,080 164,017 (63) $ 164,017
	Cost $ 17,339 42,678 1,457 102,457 149 164,080 (63) $ 164,017
Raw materials Work in progress Finished goods Merchandise inventory Inventory in transit Sub-total Less: Loss allowance for inventory valuation and obsolescence

FENG TAY ENTERPRISES CO., LTD.

STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD

December 31, 2025

(In thousands of New Taiwan Dollars)

Name of Company PT Feng Tay Indonesia Enterprises Growth-Link Overseas Company Limited VX Holdings Limited Shoe Majesty Co., Limited Dona Orient Holdings Limited PT Rich Valley Indonesia Great Eastern Industries Limited Great South Private Limited India Tindivanam Footwear Private Limited	Balance, January 1, 2024 Shares Amount 53,999 $ 1,142,889 6,000,000 16,990,365 38,280 863,799 6,120 535,216 44,753 4,263,986 519,990 1,181,608 1,000 37,791 1,700 16,741 462,007,967 1,383,147 $ 26,415,542	Addit	ions Amount 11,643 2,752,635 178,488 75,808 659,350 - 4,143 5,200 326,328 4,013,595	Decr	ease Amount 117,971 3,270,095 198,439 22,579 919,727 56,186 6,240 - 472,914 5,064,151	Balance, December 31,	Balance, December 31,	2024 Amount 1,036,561 16,472,905 843,848 588,445 4,003,609 1,125,422 35,694 21,941 1,236,561 25,364,986	Market Price Val	or Net Asset ue Total Amount 1,056,300 16,374,493 861,293 588,445 4,201,334 1,125,422 35,694 21,941 1,281,881 25,546,803	Collateral Note None Note 1 " Note 2 " Note 1 " " Note 1 " " " " Note 1
	Shares	Shares - - - - - - - - 86,796,080		Shares - - - - - - - - -		Shares 53,999 6,000,000 38,280 6,120 44,753 519,990 1,000 1,700 548,804,047	% % 99.99 % 100.00 % 47.26 % 20.40 % 40.97 % 99.99 % 100.00 % 100.00 % 96.49		Unit price 19.56 2.73 22.50 96.15 93.88 2.16 35.69 12.91 -
	53,999 6,000,000 38,280 6,120 44,753 519,990 1,000 1,700 462,007,967

Note 1:The difference is Unrealized profit from sale.

Note 2:The difference is Unrealized profit from sale and Goodwill.

Feng Tay Enterprises Co., Ltd.

STATEMENT OF OTHER CURRENT ASSETS

December 31, 2025

(Expressed in thousands of New Taiwan Dollars)

Items	Description	Amount Note $ 84,003 11,094 2,116 $ 97,213
Temporary payments Prepaid expenses Others

STATEMENT OF OTHER NON-CURRENT ASSETS

Items	Description	Amount Note $ 47,892 15,466 4,091 $ 67,449
Prepaid construction Prepaid equipment Others `T`otal

FENG TAY ENTERPRISES CO., LTD.

STATEMENT OF SHORT-TERM BORROWINGS

December 31, 2025

(In thousands of New Taiwan Dollars)

Type of loan	Description	Ending balance $ 1,000,000 875,000 $ 1,875,000	Contract period 2025.12.05-2026.01.05 2025.12.12-2026.01.12	Interest rate range 1.70% 1.72%	Loan commitment Collateral - None - None
Unsecured loan Total	A bank B bank

FENG TAY ENTERPRISES CO., LTD.

STATEMENT OF NOTES PAYABLE

December 31, 2025

(In thousands of New Taiwan Dollars)

Client's name	Description	Amount	Remark
Company C	$	46,216
Company D		33,138
Company E		22,511
Others		278,254	The balance of an individual
			client included in others does
			not exceed 5% of the account
			balance.
Total	$	380,119
	STATEMENT OF ACCOUNTS PAYABLE
Client's name	Description	Amount	Remark
Company F	$	284,151
Company G		177,395
Company H		123,297
Company I		102,194
Others		965,027	The balance of an individual
			client included in others does
			not exceed 5% of the account
			balance.
Total	$	1,652,064

FENG TAY ENTERPRISES CO., LTD.

STATEMENT OF ACCOUNTS PAYABLE DUE FROM RELATED PARTIES

December 31, 2025

(Expressed in thousands of New Taiwan Dollars)

Client's Name	Description	Amount Remark $ 1,106,891 632,718 632,432 572,730 475,742 391,548 339,358 288,154 686,618 The amount of individual client included in others does not exceed 5% of the account balance. $ 5,126,191
Vietnam Dona Standard Footwear Co., Ltd. Dona Victor Footwear Co., Ltd. Vietnam Dona Orient Co., Ltd. PT Feng Tay Indonesia Enterprises Lotus Footwear Enterprises Private Limited(India Branch) East Wind FootwearCompany Limited (India Branch) Fairway EnterprisesCompany Limited (India Branch) Dona Pacific (Vietnam) Co., Ltd. Others Total

STATEMENT OF OTHER PAYABLES

Items	Description Amounts Salary, overtime and bonus $ 345,304 Amount estimated for 2025 504,726 Unpaid expenses etc. estimated based on position and responsibility 160,724 $ 1,010,754
Salary Compensation to employees and directors Others Total

FENG TAY ENTERPRISES CO., LTD.

STATEMENT OF LONG-TERM BORROWINGS

December 31, 2025

(Expressed in thousands of New Taiwan Dollars)

Creditor	Description	Amount $ 1,500,000	Contract period 2025.12.26-2027.06.26	Interest rate 1.88%	Collecteral Note None Principal payment at maturity
C bank	Usecured loan

FENG TAY ENTERPRISES CO., LTD.

STATEMENT OF OPERATING REVENUE

For the year ended December 31, 2025 (In thousands of New Taiwan Dollars)

Items Export income Domestic sales revenue Other income Less: sales return and discount Net sales revenue Technical service income Total	Quantity	Amounts Remark $ 80,519,836 1,157 69,704 (18,790) 80,571,907 560,440 $ 81,132,347

FENG TAY ENTERPRISES CO., LTD.

STATEMENT OF OPERATING COSTS

For the year ended December 31, 2025

(In thousands of New Taiwan Dollars)

Items
Cost of self-made products sold
Raw materials, beginning of period (including raw materials in
transit)
Add: Raw materials purchased (including raw materials in transit)
Transferred from processing cost
Donated materials
Gain on physical inventory
Less: raw materials, end of period
Transferred to manufacturing cost
Transferred to operating and R&D expenses
Donated materials
Scrapped during the period
Transfer to goods
Outsourced processing
Materials used during the period
Direct labor
Manufacturing expenses
Manufacturing costs
Add: Work in progress, beginning of period
Outsourced processing
Less: Work in progress, end of period
Transfer to goods
Transferred to manufacturing cost
Transferred to operating and R&D expenses
Cost of finished goods
Add: Finished goods, beginning of period
Less: Finished goods, end of period
Transferred to R&D expenses
Cost of self-made products sold
Cost of purchased goods sold
Goods, beginning of period
Plus: Goods purchased during the period
Transferred from raw material
Transferred from work in progress
Donation received
Less: Goods, end of period
Transferred to operating expenses
Cost of purchased goods sold
Technical service costs
Loss on inventory write-offs
Reversal gains on inventory valuation
Gain on physical inventory
Operating costs

Amount
Subtotal
Total
$ 22,857
3,751,232
688
163
1
(17,488)
(23,925)
(86,417)
(3)
(33)
(3,315,253)
(364)
331,458
375,300
284,233
990,991
102,703
5
(42,678)
(11,155)
(4,319)
(308,130)
727,417
4,192
(1,457)
(6)
730,146
44,594
69,558,515
3,315,253
11,155
84
(102,457)
(230)
72,826,914
82,221
33
(69)
(1)
$
73,639,244

FENG TAY ENTERPRISES CO., LTD.

STATEMENT OF SELLING AND ADMINISTRATION EXPENSES

For the year ended December 31, 2025

(In thousands of New Taiwan Dollars)

Items	Description	Amounts Remark $ 1,162,799 268,960 557,141 The amount of an individual item in others does not exceed 5%. $ 1,988,900
Salary Professional service fee Others	Salary, overtime and bonus

STATEMENT OF RESEARCH AND DEVELOPMENT EXPENSES

Items	Description	Amounts Remark $ 1,724,730 272,748 189,966 135,920 361,668 The amount of an individual item in others does not exceed 5% $ 2,685,032
Salary Mold Raw material Insurance Others	Salary, overtime and bonus

Note: Please refer to Note (6)(e) for statement of property, plant and equipment and depreciation and impairment losses.

AI assistant

FT — Audit Report / Information 2025

52779_rns_2026-05-04_e815d46c-1084-428f-8aa0-d19c09f8b515.pdf

FENG TAY ENTERPRISES CO., LTD.

PARENT-COMPANY-ONLY FINANCIAL STATEMENTS

Table of contents

KPMG

Independent Auditors’ Report

Opinion

Basis for Opinion

Key Audit Matters

Description of the key auditor matter:

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

Auditors’ Responsibilities for the Audit of the Financial Statements

KPMG

Notes to Readers

(English Translation of Parent-company-only Financial Statements and Report Originally Issued in Chinese) FENG TAY ENTERPRISES CO., LTD.

Balance Sheets

December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

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)

(English Translation of Parent-company-only Financial Statements Originally Issued in Chinese) FENG TAY ENTERPRISES CO., LTD.

Statements of Changes in Equity

For the Years Ended December 31, 2025 and 2024

(English Translation of Parent-company-only Financial Statements Originally Issued in Chinese) FENG TAY ENTERPRISES CO., LTD.

Statements of Cash Flows

For the Years Ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

Notes to the Financial Statements

For the Years Ended December 31, 2025 and 2024

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

(1) Company history

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

(3) New standards, amendments and interpretations adopted:

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

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

Effective date per IASB

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

(4) Summary of material accounting policies:

(a) Statement of compliance

(ii) Functional and presentation currency

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

(ii) Foreign operations

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

(e) Cash and cash equivalents

(f) Financial instruments

(i) Financial assets

1) Financial assets measured at amortized cost

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

(ii) Financial liabilities

1) Other financial liabilities

2) Derecognition of financial liabilities

(g) Inventories

(h) Investment in subsidiaries

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

(i) Joint arrangements

(j) Investment Property

(k) Property, plant, and equipment

(i) Recognition and measurement

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

(ii) Subsequent expenditure

(iii) Depreciation

(l) Lease

(i) As a lessee

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

(m) Intangible assets

(ii) Other intangible assets

(n) Impairment – non-financial assets

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

1) Sale of goods

(p) Government grants

FENG TAY ENTERPRISES CO., LTD. Notes to the Financial Statements

(q) Employee benefits

(i) Defined contribution plans

(ii) Defined benefit plans

FT Audit Report / Information 2025