FT - Interim / Quarterly Report 2025

Stock Code: 9910

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES

Consolidated Financial Statements

With Independent Auditors’ Review Report For the Six Months Ended June 30, 2025 and 2024

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

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

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

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

To the Board of Directors of Feng Tay Enterprises Company Limited:

Introduction

We have reviewed the accompanying consolidated balance sheets of Feng Tay Enterprises Company Limited and its subsidiaries (“the Group”) , as of June 30, 2025 and 2024, and the related consolidated statements of comprehensive income for the three months and six months ended June 30, 2025 and 2024, as well as the changes in equity and cash flows for the six months ended June 30, 2025 and 2024, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard (“ IASs” ) 34, “ Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

Except as explained in the Basis for Qualified Conclusion paragraph, we conducted our reviews in accordance with the Standard on Review Engagements 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity” of the Republic of China. A review of the consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the Standards on Auditing of the Republic of China and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for Qualified Conclusion

As stated in Note (4)(b), the consolidated financial statements included the financial statements of certain nonsignificant subsidiaries, which were not reviewed by independent auditors. These financial statements reflect total assets amounting to $15,002,071 thousand and $16,156,593 thousand, constituting 30.45% and 30.57% of consolidated total assets as of June 30, 2025 and 2024, respectively; total liabilities amounting to $4,418,296 thousand and $4,986,527 thousand, constituting 16.59% and 17.85% of consolidated total liabilities as of June 30, 2025 and 2024, respectively, and total comprehensive (loss) income amounting to $(1,093,077) thousand, $85,125 thousand, $(793,706) thousand and $594,075 thousand, constituting 44.10%, 4.16%, 85.71% and 13.40% of consolidated total comprehensive income for the three months and six months ended June 30, 2025 and 2024, respectively.

Furthermore, as stated in Note (6)(d), the other equity accounted investments of the Group in its investee companies of $1,245,578 thousand and $1,196,941 thousand as of June 30, 2025 and 2024, respectively, and its equity in net gain on these investee companies of $80,980 thousand, $73,167 thousand, $72,109 thousand and $56,199 thousand for the three months and six months ended June 30, 2025 and 2024, respectively, were recognized solely on the financial statements prepared by these investee companies, but not reviewed by independent auditors.

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

Qualified Conclusion

Except for the adjustments, if any, as might have been determined to be necessary had the financial statements of certain consolidated subsidiaries and equity accounted investee companies described in the Basis for Qualified Conclusion paragraph above been reviewed by independent auditors, based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as of June 30, 2025 and 2024, and of its consolidated financial performance for the three months and six months ended June 30, 2025 and 2024, as well as its consolidated cash flows for the six months ended June 30, 2025 and 2024 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

The engagement partners on the reviews resulting in this independent auditors’ review report are Kuo, Rou-Lan and Lien, Shu-Ling.

KPMG

Taipei, Taiwan (Republic of China) August 12, 2025

Notes to Readers

The accompanying consolidated financial statements are intended only to present the consolidated statement of financial position, financial performance and cash flows in accordance with the accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to review such consolidated financial statements are those generally accepted and applied in the Republic of China.

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

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

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES

Consolidated Balance Sheets

June 30, 2025, December 31, 2024, and June 30, 2024

(Expressed in Thousands of New Taiwan Dollars)

December 31, 2024	December 31, 2024	June 30, 2024
Amount 2,983,008 1,141 4,131,129 11,385 5,619,372 944,396 39,408 - 43,842	%	Amount % 3,018,344 6 965 - 4,472,236 8 4,246,176 8 4,269,513 8 1,327,948 3 25,668 - - - 48,502 - 17,409,352 33 1,930,966 4 3,313,930 6 524,132 1 4,486,786 9 265,137 - 10,520,951 20 27,930,303 53 9,874,828 19 50,309 - 6,979,145 13 1,127,303 2 4,862,691 10 172,183 - 23,066,459 44 1,849,022 3 24,915,481 47 52,845,784 100
	5 - 8 - 10 2 - - - 25 6 7 1 7 - 21 46 18 - 13 2 16 1 50 4 54 100
13,773,681
3,397,663 3,641,904 577,463 3,935,182 238,007
11,790,219
25,563,900
9,874,828 49,085 6,979,145 1,127,303 8,449,684 360,006
26,840,051
1,988,831
28,828,882
54,392,782

See accompanying notes to consolidated financial statements.

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

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the three months and six months ended June 30, 2025 and 2024

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

4000 Operating revenues (Note (6)(q)) 5000 Operating costs (Note (6)(c)) Gross profit from operations Operating expenses: 6100 Selling and administrative expenses 6300 Research and development expenses Total operating expenses Net operating income Non-operating income and expenses: 7100 Interest income (Note (6)(s)) 7010 Other income (Notes (6)(s) and (7)) 7020 Other gains and losses, net (Note (6)(s)) 7050 Financial costs (Note (6)(s)) 7060 Share of profit of associates and joint ventures accounted for using equity method (Note (6)(d)) Total non-operating income and expenses Profit from continuing operations before tax 7950 Income tax expenses (Note (6)(n)) Net profit Other comprehensive income: 8360 Item that may be reclassified subsequently to profit or loss 8361 Exchange differences on translation of foreign financial statements 8399 Income tax related to components of other comprehensive loss that will may be reclassified to profit or loss (Note (6)(n)) Item that may be reclassified subsequently to profit or loss Other comprehensive (loss) income 8500 Total comprehensive (loss) income Net profit, attributable to: 8610 Net profit, attributable to owners of parent 8620 Net profit, attributable to non-controlling interests Comprehensive (loss) income attributable to: 8710 Comprehensive income, attributable to owners of parent 8720 Comprehensive income, attributable to non-controlling interests Earnings per share (Note (6)(p)) 9750 Basic earnings per share (dollars)	For the three months ended June 30 2025 2024 Amount % Amount % $ 20,399,718 100 22,266,696 100 (15,469,320) (76) (17,172,515) (77) 4,930,398 24 5,094,181 23 (1,908,135) (9) (2,343,524) (11) (686,494) (3) (745,490) (3) (2,594,629) (12) (3,089,014) (14) 2,335,769 12 2,005,167 9 15,668 - 20,063 - 88,893 - 154,888 1 (860,148) (4) 238,878 1 (59,045) - (72,749) - 80,980 - 73,167 - (733,652) (4) 414,247 2 1,602,117 8 2,419,414 11 (773,824) (4) (725,364) (3) 828,293 4 1,694,050 8 (3,320,125) (16) 352,131 2 13,476 - (1,390) - (3,306,649) (16) 350,741 2 (3,306,649) (16) 350,741 2 $ (2,478,356) (12) 2,044,791 10 $ 719,630 3 1,585,696 8 108,663 1 108,354 - $ 828,293 4 1,694,050 8 $ (2,372,077) (12) 1,910,775 9 (106,279) - 134,016 1 $ (2,478,356) (12) 2,044,791 10 $ 0.73 1.60	For the three months ended June 30 2025 2024 Amount % Amount % $ 20,399,718 100 22,266,696 100 (15,469,320) (76) (17,172,515) (77) 4,930,398 24 5,094,181 23 (1,908,135) (9) (2,343,524) (11) (686,494) (3) (745,490) (3) (2,594,629) (12) (3,089,014) (14) 2,335,769 12 2,005,167 9 15,668 - 20,063 - 88,893 - 154,888 1 (860,148) (4) 238,878 1 (59,045) - (72,749) - 80,980 - 73,167 - (733,652) (4) 414,247 2 1,602,117 8 2,419,414 11 (773,824) (4) (725,364) (3) 828,293 4 1,694,050 8 (3,320,125) (16) 352,131 2 13,476 - (1,390) - (3,306,649) (16) 350,741 2 (3,306,649) (16) 350,741 2 $ (2,478,356) (12) 2,044,791 10 $ 719,630 3 1,585,696 8 108,663 1 108,354 - $ 828,293 4 1,694,050 8 $ (2,372,077) (12) 1,910,775 9 (106,279) - 134,016 1 $ (2,478,356) (12) 2,044,791 10 $ 0.73 1.60	For the three months ended June 30 2025 2024 Amount % Amount % $ 20,399,718 100 22,266,696 100 (15,469,320) (76) (17,172,515) (77) 4,930,398 24 5,094,181 23 (1,908,135) (9) (2,343,524) (11) (686,494) (3) (745,490) (3) (2,594,629) (12) (3,089,014) (14) 2,335,769 12 2,005,167 9 15,668 - 20,063 - 88,893 - 154,888 1 (860,148) (4) 238,878 1 (59,045) - (72,749) - 80,980 - 73,167 - (733,652) (4) 414,247 2 1,602,117 8 2,419,414 11 (773,824) (4) (725,364) (3) 828,293 4 1,694,050 8 (3,320,125) (16) 352,131 2 13,476 - (1,390) - (3,306,649) (16) 350,741 2 (3,306,649) (16) 350,741 2 $ (2,478,356) (12) 2,044,791 10 $ 719,630 3 1,585,696 8 108,663 1 108,354 - $ 828,293 4 1,694,050 8 $ (2,372,077) (12) 1,910,775 9 (106,279) - 134,016 1 $ (2,478,356) (12) 2,044,791 10 $ 0.73 1.60	For the six months ended June 30 2025 2024 Amount % Amount % 41,122,541 100 42,883,147 100 (31,816,662) (77) (33,467,780) (78) 9,305,879 23 9,415,367 22 (4,193,078) (10) (4,634,108) (11) (1,387,931) (4) (1,434,938) (4) (5,581,009) (14) (6,069,046) (15) 3,724,870 9 3,346,321 7 26,880 - 32,797 - 200,828 - 281,118 1 (646,675) (1) 664,073 2 (122,228) - (135,765) - 72,109 - 56,199 - (469,086) (1) 898,422 3 3,255,784 8 4,244,743 10 (1,231,204) (3) (1,211,073) (3) 2,024,580 5 3,033,670 7 (2,962,704) (7) 1,404,949 3 12,080 - (5,154) - (2,950,624) (7) 1,399,795 3 (2,950,624) (7) 1,399,795 3 (926,044) (2) 4,433,465 10 1,868,394 5 2,856,342 7 156,186 - 177,328 - 2,024,580 5 3,033,670 7 (892,969) (2) 4,155,828 9 (33,075) - 277,637 1 (926,044) (2) 4,433,465 10 1.89 2.89	For the six months ended June 30 2025 2024 Amount % Amount % 41,122,541 100 42,883,147 100 (31,816,662) (77) (33,467,780) (78) 9,305,879 23 9,415,367 22 (4,193,078) (10) (4,634,108) (11) (1,387,931) (4) (1,434,938) (4) (5,581,009) (14) (6,069,046) (15) 3,724,870 9 3,346,321 7 26,880 - 32,797 - 200,828 - 281,118 1 (646,675) (1) 664,073 2 (122,228) - (135,765) - 72,109 - 56,199 - (469,086) (1) 898,422 3 3,255,784 8 4,244,743 10 (1,231,204) (3) (1,211,073) (3) 2,024,580 5 3,033,670 7 (2,962,704) (7) 1,404,949 3 12,080 - (5,154) - (2,950,624) (7) 1,399,795 3 (2,950,624) (7) 1,399,795 3 (926,044) (2) 4,433,465 10 1,868,394 5 2,856,342 7 156,186 - 177,328 - 2,024,580 5 3,033,670 7 (892,969) (2) 4,155,828 9 (33,075) - 277,637 1 (926,044) (2) 4,433,465 10 1.89 2.89	For the six months ended June 30 2025 2024 Amount % Amount % 41,122,541 100 42,883,147 100 (31,816,662) (77) (33,467,780) (78) 9,305,879 23 9,415,367 22 (4,193,078) (10) (4,634,108) (11) (1,387,931) (4) (1,434,938) (4) (5,581,009) (14) (6,069,046) (15) 3,724,870 9 3,346,321 7 26,880 - 32,797 - 200,828 - 281,118 1 (646,675) (1) 664,073 2 (122,228) - (135,765) - 72,109 - 56,199 - (469,086) (1) 898,422 3 3,255,784 8 4,244,743 10 (1,231,204) (3) (1,211,073) (3) 2,024,580 5 3,033,670 7 (2,962,704) (7) 1,404,949 3 12,080 - (5,154) - (2,950,624) (7) 1,399,795 3 (2,950,624) (7) 1,399,795 3 (926,044) (2) 4,433,465 10 1,868,394 5 2,856,342 7 156,186 - 177,328 - 2,024,580 5 3,033,670 7 (892,969) (2) 4,155,828 9 (33,075) - 277,637 1 (926,044) (2) 4,433,465 10 1.89 2.89
	2025	% 100 (76) 24 (9) (3) (12) 12 - - (4) - - (4) 8 (4) 4 (16) - (16) (16) (12) 3 1 4 (12) - (12) 0.73	2024	2025	% 100 (77) 23 (10) (4) (14) 9 - - (1) - - (1) 8 (3) 5 (7) - (7) (7) (2) 5 - 5 (2) - (2) 1.89	2024 Amount 42,883,147 (33,467,780) 9,415,367 (4,634,108) (1,434,938) (6,069,046) 3,346,321 32,797 281,118 664,073 (135,765) 56,199 898,422 4,244,743 (1,211,073) 3,033,670 1,404,949 (5,154) 1,399,795 1,399,795 4,433,465 2,856,342 177,328 3,033,670 4,155,828 277,637 4,433,465
	Amount $ 20,399,718 (15,469,320) 4,930,398 (1,908,135) (686,494) (2,594,629) 2,335,769 15,668 88,893 (860,148) (59,045) 80,980 (733,652) 1,602,117 (773,824) 828,293 (3,320,125) 13,476 (3,306,649) (3,306,649) $ (2,478,356) $ 719,630 108,663 $ 828,293 $ (2,372,077) (106,279) $ (2,478,356) $		Amount 22,266,696 (17,172,515) 5,094,181 (2,343,524) (745,490) (3,089,014) 2,005,167 20,063 154,888 238,878 (72,749) 73,167 414,247 2,419,414 (725,364) 1,694,050 352,131 (1,390) 350,741 350,741 2,044,791 1,585,696 108,354 1,694,050 1,910,775 134,016 2,044,791	Amount 41,122,541 (31,816,662) 9,305,879 (4,193,078) (1,387,931) (5,581,009) 3,724,870 26,880 200,828 (646,675) (122,228) 72,109 (469,086) 3,255,784 (1,231,204) 2,024,580 (2,962,704) 12,080 (2,950,624) (2,950,624) (926,044) 1,868,394 156,186 2,024,580 (892,969) (33,075) (926,044)

See accompanying notes to consolidated financial statements.

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

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES

Consolidated Statements of Changes in Equity

For the six months ended June 30, 2025 and 2024 (Expressed in Thousands of New Taiwan Dollars)

Balance on January 1, 2024 Net profit Other comprehensive (loss) income Total comprehensive income Appropriation and distribution of retained earnings: Legal reserve appropriated Special reserve appropriated Cash dividends of ordinary share Changes in ownership interests in subsidiaries Changes in non-controlling interests Balance on June 30, 2024 Balance on January 1,2025 Net profit Other comprehensive income Total comprehensive (loss) income Appropriation and distribution of retained earnings: Legal reserve appropriated Reversal of special reserve Cash dividends of ordinary share Due to donated assets received Changes in ownership interests in subsidiaries Changes in non-controlling interests Balance on June 30, 2025			Equity attributable to owners of	Equity attributable to owners of	parent		Total equity attributable to owners of parent 23,160,248 2,856,342 1,299,486 4,155,828 - - (4,246,176) (3,441) - 23,066,459 26,840,051 1,868,394 (2,761,363) (892,969) - - (5,036,162) (99) (1,617) - 20,909,204	Non-controlling interests 1,894,583 177,328 100,309 277,637 - - - 6,586 (329,784) 1,849,022 1,988,831 156,186 (189,261) (33,075) - - - - 1,617 (229,057) 1,728,316	Total equity 25,054,831 3,033,670 1,399,795 4,433,465 - - (4,246,176) 3,145 (329,784) 24,915,481 28,828,882 2,024,580 (2,950,624) (926,044) - - (5,036,162) (99) - (229,057) 22,637,520
	Share capital Ordinary shares $ 9,874,828 - - - - - - - - $ 9,874,828 $ 9,874,828 - - - - - - - - - $ 9,874,828	Capital surplus 53,750 - - - - - - (3,441) - 50,309 49,085 - - - - - - (99) (1,617) - 47,369		Retained earnings	Unappropriated retained earnings 6,829,001 2,856,342 - 2,856,342 (502,702) (73,774) (4,246,176) - - 4,862,691 8,449,684 1,868,394 - 1,868,394 (644,333) 1,127,303 (5,036,162) - - - 5,764,886	Total other equity interest Exchange differences on translation of foreign financial statements (1,127,303) - 1,299,486 1,299,486 - - - - - 172,183 360,006 - (2,761,363) (2,761,363) - - - - - - (2,401,357)
			Legal reserve 6,476,443 - - - 502,702 - - - - 6,979,145 6,979,145 - - - 644,333 - - - - - 7,623,478	Special reserve 1,053,529 - - - - 73,774 - - - 1,127,303 1,127,303 - - - - (1,127,303) - - - - -

See accompanying notes to consolidated financial statements.

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

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES

Consolidated Statements of Cash Flows

For the six months ended June 30, 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 expense Amortization expense Interest expense Interest income Share of profit of associates and joint ventures accounted for using equity method Loss on disposal of property, plant and equipment Gain on disposal of investment properties Others Total adjustments to reconcile profit Changes in operating assets and liabilities: Changes in operating assets: Decrease (increase) in accounts receivable Decrease (increase) in other receivables Decrease (increase) in inventories Decrease (increase) in other current assets, others Decrease (increase) in other current financial assets Total changes in operating assets Changes in operating liabilities: Increase (decrease) in current contract liabilities Increase (decrease) in notes and accounts payable Increase (decrease) in other payable Increase (decrease) in other current liabilities, others Increase (decrease) in net defined benefit liability Increase (decrease) in other non-current liabilities, others Total changes in operating liabilities Total changes in operating assets and liabilities Total adjustments Cash inflow generated from operations Interest received Interest paid Income taxes paid Net cash flows from operating activities Cash flows from (used in) investing activities: Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Acquisition of intangible assets Proceeds from disposal of intangible assets Proceeds from disposal of investment properties Decrease (increase) in other non-current financial assets (Increase) decrease in other non-current assets, others Net cash flows used in investing activities Cash flows from (used in) financing activities: (Decrease) increase in short-term loans Proceeds from long-term borrowings Repayments of long-term borrowings Payment of lease liabilities Change in non-controlling interests Net cash flows used in financing activities Effect of exchange rate changes on cash and cash equivalents Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period	For the six months ended June 30 2025 2024 $ 3,255,784 4,244,743 1,512,252 1,531,610 40,926 36,188 122,228 135,765 (26,880) (32,797) (72,109) (56,199) 6,110 15,891 (80,727) (24,801) (1,593) 22,629 1,500,207 1,628,286 (318,303) (627,245) 93,256 (161,894) (296,659) (30,925) (136,719) (133,487) - 469 (658,425) (953,082) (30) (90) (206,738) 86,883 (1,088,917) (1,209,918) 15,596 1,895 188,459 66,581 (9,831) 32,079 (1,101,461) (1,022,570) (1,759,886) (1,975,652) (259,679) (347,366) 2,996,105 3,897,377 28,695 30,901 (124,206) (141,236) (459,623) (1,761,583) 2,440,971 2,025,459 (1,552,977) (1,597,403) 68,388 79,786 (56,882) (64,334) 591 - 92,984 42,656 3,121 (1,403) (1,514) 5,977 (1,446,289) (1,534,721) (589,498) 722,938 50,561 94,703 (1,623,243) (1,789,352) (30,656) (28,155) (208,483) (316,786) (2,401,319) (1,316,652) (705,907) 225,131 (2,112,544) (600,783) 5,140,543 3,858,842 $ 3,027,999 3,258,059
	2025 $ 3,255,784 1,512,252 40,926 122,228 (26,880) (72,109) 6,110 (80,727) (1,593) 1,500,207 (318,303) 93,256 (296,659) (136,719) - (658,425) (30) (206,738) (1,088,917) 15,596 188,459 (9,831) (1,101,461) (1,759,886) (259,679) 2,996,105 28,695 (124,206) (459,623) 2,440,971 (1,552,977) 68,388 (56,882) 591 92,984 3,121 (1,514) (1,446,289) (589,498) 50,561 (1,623,243) (30,656) (208,483) (2,401,319) (705,907) (2,112,544) 5,140,543 $ 3,027,999

Cash flows from (used in) operating activities:
Profit before tax
Adjustments:
Adjustments to reconcile profit (loss):
Depreciation expense
Amortization expense
Interest expense
Interest income
Share of profit of associates and joint ventures accounted for using equity method
Loss on disposal of property, plant and equipment
Gain on disposal of investment properties
Others
Total adjustments to reconcile profit
Changes in operating assets and liabilities:
Changes in operating assets:
Decrease (increase) in accounts receivable
Decrease (increase) in other receivables
Decrease (increase) in inventories
Decrease (increase) in other current assets, others
Decrease (increase) in other current financial assets
Total changes in operating assets
Changes in operating liabilities:
Increase (decrease) in current contract liabilities
Increase (decrease) in notes and accounts payable
Increase (decrease) in other payable
Increase (decrease) in other current liabilities, others
Increase (decrease) in net defined benefit liability
Increase (decrease) in other non-current liabilities, others
Total changes in operating liabilities
Total changes in operating assets and liabilities
Total adjustments
Cash inflow generated from operations
Interest received
Interest paid
Income taxes paid
Net cash flows from operating activities
Cash flows from (used in) investing activities:
Acquisition of property, plant and equipment
Proceeds from disposal of property, plant and equipment
Acquisition of intangible assets
Proceeds from disposal of intangible assets
Proceeds from disposal of investment properties
Decrease (increase) in other non-current financial assets
(Increase) decrease in other non-current assets, others
Net cash flows used in investing activities
Cash flows from (used in) financing activities:
(Decrease) increase in short-term loans
Proceeds from long-term borrowings
Repayments of long-term borrowings
Payment of lease liabilities
Change in non-controlling interests
Net cash flows used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

For the six months ended June 30
2025
2024
$ 3,255,784
4,244,743
1,512,252
1,531,610
40,926
36,188
122,228
135,765
(26,880)
(32,797)
(72,109)
(56,199)
6,110
15,891
(80,727)
(24,801)
(1,593)
22,629
1,500,207
1,628,286
(318,303)
(627,245)
93,256
(161,894)
(296,659)
(30,925)
(136,719)
(133,487)
-
469
(658,425)
(953,082)
(30)
(90)
(206,738)
86,883
(1,088,917)
(1,209,918)
15,596
1,895
188,459
66,581
(9,831)
32,079
(1,101,461)
(1,022,570)
(1,759,886)
(1,975,652)
(259,679)
(347,366)
2,996,105
3,897,377
28,695
30,901
(124,206)
(141,236)
(459,623)
(1,761,583)
2,440,971
2,025,459
(1,552,977)
(1,597,403)
68,388
79,786
(56,882)
(64,334)
591
-
92,984
42,656
3,121
(1,403)
(1,514)
5,977
(1,446,289)
(1,534,721)
(589,498)
722,938
50,561
94,703
(1,623,243)
(1,789,352)
(30,656)
(28,155)
(208,483)
(316,786)
(2,401,319)
(1,316,652)
(705,907)
225,131
(2,112,544)
(600,783)
5,140,543
3,858,842
$
3,027,999
3,258,059

2025
$ 3,255,784
1,512,252
40,926
122,228
(26,880)
(72,109)
6,110
(80,727)
(1,593)
1,500,207
(318,303)
93,256
(296,659)
(136,719)
-
(658,425)
(30)
(206,738)
(1,088,917)
15,596
188,459
(9,831)
(1,101,461)
(1,759,886)
(259,679)
2,996,105
28,695
(124,206)
(459,623)
2,440,971
(1,552,977)
68,388
(56,882)
591
92,984
3,121
(1,514)
(1,446,289)
(589,498)
50,561
(1,623,243)
(30,656)
(208,483)
(2,401,319)
(705,907)
(2,112,544)
5,140,543
$
3,027,999

See accompanying notes to consolidated financial statements.

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

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

June 30, 2025 and 2024

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

(1) Company history

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

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

The consolidated financial statements were authorized for issuance by the Board of Directors on August 12, 2025.

(3) New standards, amendments and interpretations adopted:

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

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

●Amendments to IAS21 “Lack of Exchangeability”
(b) The impact of IFRS Accounting Standards endorsed by the FSC but not yet effective

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

●IFRS 17 “ Insurance Contracts” and amendments to IFRS 17 “ Insurance Contracts”
●Amendments to IFRS 9 and IFRS 7 “ Amendments to the Classification and Measurement of Financial Instruments” regarding the application guidance requirements for Sections 3.1 and 3.3 of IFRS 9 and the related disclosure requirements of IFRS 7
●Annual Improvements to IFRS Accounting Standards—Volume 11
●Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”

(Continued)

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

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

Standards or Effective date Interpretations Content of amendment per IASB IFRS 18 “Presentation and The new standard introduces three categories January 1, 2027 Disclosure in Financial of 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.
●Management performance measures (MPMs): the new standard introduces a definition for management performance measures, and requires companies to explain in a single note to the financial statements why the measure provides useful information, how it is calculated and reconcile it to an amount determined under IFRS Accounting Standards.
●Greater disaggregation of information: the new standard includes enhanced guidance on how companies group information in the financial statements. This includes guidance on whether information is included in the primary financial statements or is further disaggregated in the notes.

(Continued)

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

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

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

●Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”
●IFRS 19 “Subsidiaries without Public Accountability: Disclosures”

(4) Summary of material accounting policies:

(a) Statement of compliance

These consolidated financial statements have been prepared in accordance with the preparation and guidelines of IAS 34 “Interim Financial Reporting” which are endorsed and issued into effect by FSC, and do not include all of the information required by the Regulations and International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations and SIC Interpretations endorsed and issued into effect by the FSC (hereinafter referred to IFRS Accounting Standards endorsed by the FSC) for a complete set of the annual consolidated financial statements.

Except the following accounting policies mentioned below, the significant accounting policies adopted in the consolidated financial statements are the same as those in the consolidated financial statement for the year ended December 31, 2024. For the related information, please refer to note (4) of the consolidated financial statements for the year ended December 31, 2024.

(b) Basis of consolidation

(i) List of subsidiaries in the consolidated financial statements

Name of investor	Name of subsidiary	Principal activity	Shareholding	Shareholding	June 30, 2024 Description % 100.00 PT Feng Tay Indonesia Enterprises was established in Indonesia in 1992, and has paid in capital of USD27,000,000. (Note 1) % 100.00 Growth-Link Overseas Company Limited was established in Bermuda in 1991, and has paid in capital of USD27,513,036 (including share premium of USD27,453,036).
			June 30, 2025 % 100.00 % 100.00	December 31, 2024 % 100.00 % 100.00
The Company`、` GLO The Company	PT Feng Tay Indonesia Enterprises Growth-Link Overseas Company Limited(GLO)	Manufactures athletic shoes, casual shoes, semi- finished footwear and footwear accessories. Investment holding.

(Continued)

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

Name of investor	Name of subsidiary	Principal activity	Shareholding	Shareholding	June 30, 2024 Description % 92.13 VX Holdings Limited was established in British Virgin Islands in 1997, and has paid in capital of USD32,335,923 (including share premium of USD32,254,923). (Note 1) % 100.00 Dona Orient Holdings Limited was established in British Virgin Islands in 2003, and has paid in capital of USD111,593,053 (including share premium of USD111,483,817). % 100.00 PT Rich Valley Indonesia was established in Indonesia in 2019,and has paid in capital of USD36,431,286. (Note 1) % 100.00 Great Eastern Industries Limited, was established in Hong Kong in 2019, and has paid in capital of USD1,000,000 (including share premium of USD999,000). (Note 1) % 100.00 Great South Private Limited was established in Singapore in 2021, and has paid in capital of SGD1,700,000. (Note 1) % 95.04 India Tindivanam Footwear Private Limited was established in India in 2022, and has paid in capital of INR5,375,944,020. (Note 1) % 70.00 Fujian Da Feng Holdings Company Limited was established in Fujian Province, China in 1993, and has paid in capital of USD27,000,000. (Note 1)
			June 30, 2025 % 92.13 % 100.00 % 100.00 % 100.00 % 100.00 % 96.28 % 70.00	December 31, 2024 % 92.13 % 100.00 % 100.00 % 100.00 % 100.00 % 95.85 % 70.00
The Company`、` GLO The Company`、` GLO The Company`、` GLO The Company The Company The Company GLO	VX Holdings Limited (VXH) Dona Orient Holdings Limited (DOH) PT Rich Valley Indonesia Great Eastern Industries Limited Great South Private Limited India Tindivanam Footwear Private Limited Fujian Da Feng Holdings Company Limited(DF)	Investment holding. Investment holding. Manufactures athletic shoes, casual shoes, semi- finished footwear and footwear accessories. International trade services. Investing holding. Manufactures athletic shoes, semi-finished footwear and footwear accessories. Investment holding.

(Continued)

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

Name of investor	Name of subsidiary	Principal activity	Shareholding	Shareholding	June 30, 2024 Description % 100.00 Fujian Lifeng Footwear Industrial Development Company Limited was established in Fujian Province, China in 1988, and has paid in capital of USD15,000,000. % 100.00 Fujian Xiefeng Footwear Company Limited was established in Fujian Province, China in 1989, and has paid in capital of USD15,000,000. % 80.00 Fujian San Feng Footwear Company Limited was established in Fujian Province, China in 1992, and has paid in capital of USD15,000,000. % 100.00 Fujian Great Hope Footwear Company Limited was established in Fujian Province, China in 1989, and has paid in capital of USD7,950,000. (Note 1) % 50.34 Fujian Putian Xie Feng Mold Company Limited was established in Fujian Province, China in 1991, and has paid in capital of USD3,000,000. (Note 1) % 100.00 Suzhou Yufeng Plastic Technology Co., Ltd.,was established in Jiangsu Province, China in 2009, and has paid in capital of USD2,562,738. (Note 1) % 50.00 Fujian Wu Feng Department Store Co., Ltd. was established in Fujian Province, China in 1992, and has paid in capital of USD4,500,000. (Note 1) % 92.00 Dona Pacific Holdings Limited was established in British Virgin Islands in 2000, and has paid in capital of USD13,558,901 (including share premium of USD13,533,901). (Note 1)
			June 30, 2025 % 100.00 % 100.00 % 80.00 % 100.00 % 50.34 % 100.00 % 50.00 % 92.00	December 31, 2024 % 100.00 % 100.00 % 80.00 % 100.00 % 50.34 % 100.00 % 50.00 % 92.00
DF GLO and DF GLO and DF GLO, DF, LF and XM GLO LF, GH and XM GLO GLO	Fujian Lifeng Footwear Industrial Development Company Limited(LF) Fujian Xiefeng Footwear Company Limited Fujian San Feng Footwear Company Limited Fujian Great Hope Footwear Company Limited(GH) Fujian Putian Xie Feng Mold Company Limited(XM) Suzhou Yufeng Plastics Technology Co., Ltd. Fujian Wu Feng Department Store Co., Ltd. Dona Pacific Holdings Limited (DPH)	Manufactures athletic shoes, semi-finished footwear, and footwear accessories. Manufactures athletic shoes, semi-finished footwear, and footwear accessories. Manufactures athletic shoes, semi-finished footwear, and footwear accessories. Manufactures athletic shoes, casual shoes, semi- finished footwear, footwear accessories, protective gear, and other supporting products. Manufactures and repairs molds, cutting dies, shoe lasts, injections, and processing of metal parts. Manufacturing and processing of plastic products. Wholesaler and retailer of general merchandise, and related services. Investment holding.

(Continued)

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

Name of investor	Name of subsidiary	Principal activity	Shareholding	Shareholding	June 30, 2024 Description % 93.00 VX Mold Company Limited was established in British Virgin Islands in 1999, and has paid in capital of USD400,000. (Note 1) % 88.00 Lotus Footwear Enterprises Private Limited was established in British Virgin Islands in 2006. In May 2025, the company re-domiciled to Singapore, with a paid-in capital of USD79,141,400. % 100.00 Dona Victor Footwear Co., Ltd., was established in Vietnam in 1994, and has paid in capital of USD35,400,000. % 100.00 Vietnam Dona Orient Co.,Ltd., was established in Vietnam in 2003, and has paid in capital of USD44,000,000. % 100.00 Vietnam Dona Standard Footwear Co., Ltd., was established in Vietnam in 2006, and has paid in capital of USD75,700,000. % 100.00 Vung Tau Orient Co., Ltd., was established in Vietnam in 2005, and has paid in capital of USD41,000,000. (Note 1) % 100.00 Vietnam Nam Ha Footwear Company Limited was established in Vietnam in 2019, and has paid in capital of USD62,000,000. (Note 1) % 100.00 Dona Pacific (Vietnam) Co., Ltd., was established in Vietnam in 2000, and has paid in capital of USD20,000,000. % 100.00 Dona Victor Molds MFG. Co., Ltd., was established in Vietnam in 1999, and has paid in capital of USD3,100,000. (Note 1)
			June 30, 2025 % 93.00 % 88.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00	December 31, 2024 % 93.00 % 88.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00
GLO GLO VXH DOH DOH DOH DOH DPH VXM	VX Mold Company Limited(VXM) Lotus Footwear Enterprises Private Limited (LUH) Dona Victor Footwear Co., Ltd. Vietnam Dona Orient Co., Ltd. Vietnam Dona Standard Footwear Co., Ltd. Vung Tau Orient Co., Ltd. Vietnam Nam Ha Footwear Company Limited Dona Pacific (Vietnam) Co., Ltd. Dona Victor Molds MFG. Co., Ltd.	Investment holding. Investment holding business, and manufacturing and selling of finished shoes. Manufactures athletic shoes, semi-finished footwear, and footwear accessories. Manufactures athletic shoes, semi-finished footwear, and footwear accessories. Manufactures athletic shoes, semi-finished footwear, and footwear accessories. Manufactures golf balls, soccer balls, backpack and bags. Manufactures athletic shoes, semi-finished footwear, and footwear accessories. Manufactures athletic shoes, semi-finished footwear, and footwear accessories. Manufactures and repairs molds, cutting dies, and processing of metal parts.

(Continued)

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

==> picture [430 x 259] intentionally omitted <==

----- Start of picture text -----

Shareholding
Name of Principal June 30, December June 30,
investor Name of subsidiary activity 2025 31, 2024 2024 Description
GLO and LUH Cheyyar SEZ Developers Private Development in India’s 100.00 % 100.00 % 100.00 % Cheyyar SEZ
Limited Industrial Park. Developers Private
Limited was
established in Indian
in 2006, and has paid
in capital of
USD119,893,561.
(Note 1)
LUH East Wind Footwear Company Investment holding and 100.00 % 100.00 % 100.00 % East Wind Footwear
Limited production of athletic Company Limited was
shoes. established in British
Virgin Islands in 2010,
and has paid in capital
of USD16,370,822
(including share
premium of
USD16,361,071).
(Note 2)
LUH Fairway Enterprises Company Investment holding and 100.00 % 100.00 % 100.00 % Fairway Enterprises
Limited production of athletic Company Limited was
shoes. established in British
Virgin Islands in 2014,
and has paid in capital
of USD45,793,307
(including share
premium of
USD45,763,806).
(Note 2)
----- End of picture text -----

Note 1: This company is a non-significant subsidiary, its financial statements have not been reviewed.
Note 2: This company is a non-significant subsidiary, and only the financial statements of the Indian branch have been reviewed.
(ii) Subsidiaries excluded from the consolidated financial statements: None.

(c) Employee benefits

The pension cost in the interim period was calculated and disclosed on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior fiscal year, adjusted for significant market fluctuations since that time and for significant curtailments, settlements, or other significant one-off events.

(d) Income taxes

The income tax expenses have been prepared and disclosed in accordance with paragraph B12 of International Financial Reporting Standards 34, Interim Reporting.

Income tax expenses for the period are best estimated by multiplying pre-tax income for the interim reporting period using the effective annual tax rate as forecasted by the management. This should be recognized fully as tax expense for the current period.

Temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases shall be measured based on the tax rates that have been enacted or substantively enacted at the time of the asset or liability is recovered or settled, and be recognized directly in equity or other comprehensive income as tax expense.

(Continued)

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

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

The preparation of the consolidated financial statements in conformity with the Regulations and IFRS Accounting Standards (in accordance with IAS 34 “Interim Financial Reporting” and endorsed by the FSC) requires management to make judgments, and estimates about the future, including climaterelated 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.

The preparation of the consolidated interim financial statements, estimates and underlying assumptions are reviewed on an ongoing basis which are in conformity with the consolidated financial statements for the year ended December 31, 2024. For the related information, please refer to note (5) of the consolidated financial statements for the year ended December 31, 2024.

(6) Explanation of significant accounts:

(a) Cash and cash equivalents

Cash Demand deposits and check deposit Time deposits Cash and cash equivalents in the consolidated statement of cash flows	June 30, 2025 $ 994 1,338,578 1,688,427 $ 3,027,999	December 31, 2024 1,125 2,221,183 2,918,235 5,140,543	June 30, 2024
			1,114 1,363,638 1,893,307
			3,258,059

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

(b) Accounts receivable

Accounts receivable–measured at amortized cost Less: Allowance for credit loss	June 30, 2025 $ 8,380,466 - $ 8,380,466	December 31, 2024 8,118,995 - 8,118,995	June 30, 2024 8,808,258 (7,972) 8,800,286

(Continued)

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

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

	June 30, 2025
Gross carrying amount Weighted- average loss rate $ 7,796,504 0.00% 535,449 0.00% 46,697 0.00% 1,816 0.00% $ 8,380,466 December 31, 2024		Allowance for credit loss provision
		- - - -
		-

	Weighted- average loss rate 0.00% 0.00% 0.00% 0.00% June 30, 2024	Allowance for credit loss provision
		- - - -
		-

	Weighted- average loss rate 0.00% 0.00% 0.00% 0.00% 100.00%	Allowance for credit loss provision
		- - - - 7,972
		7,972

(Continued)

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

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

Balance on January 1 Balance on June 30	For the six months ended June 30	For the six months ended June 30
	2025 $ - $ -	2024
		7,972
		7,972

As of June 30, 2025, December 31, 2024 and June 30, 2024, the accounts receivable of the Group were not pledged as collateral for its loan.

Raw materials Work in process Finished goods Merchandise inventory Inventory in transit Others	June 30, 2025 $ 3,657,628 1,327,931 2,312,740 81,944 1,151,426 175 $ 8,531,844	December 31, 2024 3,638,768 1,322,945 3,044,874 89,807 1,140,984 477 9,237,855	June 30, 2024
			3,540,456 1,349,162 2,651,774 104,348 1,432,375 1,042
			9,079,157

The details of operating cost were as follows:

Cost of goods sold Unallocated production overheads Net gains on inventories Inventory scrap loss Revenue from sale of scraps Losses (reversal gains) on obsolescence and inventory valuation Total	For the three months ended June 30 2025 2024 $ 15,371,355 16,995,748 71,127 180,979 (89) (286) 10,884 54,028 (14,958) (16,391) 31,001 (41,563) $ 15,469,320 17,172,515	For the six months ended June 30 2025 2024 31,372,920 33,101,401 393,849 325,492 (833) (735) 29,426 80,509 (28,356) (30,087) 49,656 (8,800) 31,816,662 33,467,780
	2025 $ 15,371,355 71,127 (89) 10,884 (14,958) 31,001 $ 15,469,320	2025 31,372,920 393,849 (833) 29,426 (28,356) 49,656 31,816,662

Write-downs of inventories were due to the sluggish, obsolete, or unusable inventory, wherein the amount of the net realizable value of the inventory which were lower than the cost was recognized as operating costs. However, the original factors led to the loss disappeared due to disposal of inventory, resulting in gains on price recovery of inventory. These changes were recognized as reduction of operating cost.

As of June 30, 2025, December 31, 2024 and June 30, 2024, the inventory of the Group was not pledged as collateral for its loan.

(Continued)

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

(d) Investments accounted for using equity method

(i) Joint ventures

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

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

June 30, 2025 December 31, 2024 June 30, 2024 Individually insignificant joint venture $ 1,245,578 1,316,221 1,196,941 For the three months ended June 30 For the six months ended June 30 2025 2024 2025 2024 Attributable to the Group: Profit from continuing operation $ 80,980 73,167 72,109 56,199 Other comprehensive income (148,361) 15,302 (132,999) 56,738 Comprehensive income $ (67,381) 88,469 (60,890) 112,937	June 30, 2025 December 31, 2024 June 30, 2024 Individually insignificant joint venture $ 1,245,578 1,316,221 1,196,941 For the three months ended June 30 For the six months ended June 30 2025 2024 2025 2024 Attributable to the Group: Profit from continuing operation $ 80,980 73,167 72,109 56,199 Other comprehensive income (148,361) 15,302 (132,999) 56,738 Comprehensive income $ (67,381) 88,469 (60,890) 112,937	June 30, 2024 1,196,941	June 30, 2024 1,196,941
	2025 72,109 (132,999) (60,890)
			112,937

(ii) Collateral

As of June 30, 2025, December 31, 2024 and June 30, 2024, the investment accounted for using equity method of the Group was not pledged as collateral for its loan.

(iii) The unreviewed financial statements of investments accounted for using equity method

Investments were accounted for by using the equity method, and the share of profit or loss and other comprehensive income of those investments were calculated based on the financial statements that have not been reviewed.

(e) Material non-controlling interest of subsidiaries

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

Subsidiaries	Main operation place China	Percentage of non-controlling interests June 30, 2025 December 31, 2024 June 30, 2024 % 30.00 % 30.00 % 30.00
		June 30, 2025 % 30.00
Da Feng Holdings Co., Ltd.

(Continued)

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

The following information of the aforementioned subsidiaries have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers. Included in this information are the fair value adjustment made during the acquisition and the relevant difference in accounting principles between the Group and its subsidiaries as at the acquisition date. Intra-group transactions were not eliminated in this information.

(i) Da Feng Holdings Co., Ltd.’s collective financial information:

				June 30,		December 31,	December 31,	June 30,
				2025		2024		2024
Current assets			$	150,925		332,513		28,895
Non-current assets				2,260,004		2,385,224		2,399,613
Current liabilities				(53,258)		(48,713)		(30,526)
Net assets			$	2,357,671		2,669,024		2,397,982
Non-controlling interests			$	707,301		800,707		719,395
	For	the three months ended			June 30	For the six months		ended June 30
		2025		2024		2025		2024
Net income	$	173,848			105,696		222,023	193,511
Other comprehensive
(loss) income		(308,850)			30,785	(273,349)		130,578
Comprehensive (loss)
income	$	(135,002)			136,481		(51,326)	324,089
Profit, attributable to non-
controlling interests	$		52,154		31,709		66,607	58,053
Comprehensive (loss)
income, attributable to
non-controlling
interests	$	(40,501)			40,944		(15,398)	97,227
Net cash flows from
operating activities	$		27,600		9,440		14,959	3,310
Net cash flows from
investing activities		353,496			468,856		353,432	468,822
Net cash flows used in
financing activities		(260,449)			(502,799)	(260,449)		(502,799)
Net increase (decrease) in
cash and cash
equivalents	$	120,647			(24,503)		107,942	(30,667)
Cash dividends to non-
controlling interests	$		78,135		150,840		78,135	150,840

(Continued)

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

(f) Property, plant and equipment

The cost, depreciation, and impairment of the property, plant and equipment of the Group for the six months ended June 30, 2025 and 2024 were as follows:

Land $ 1,655,182 - - - (47,339)	Buildings 17,751,741 18,781 (83,814) 124,048 (1,624,897)	Machinery and equipment 26,915,429 261,129 (366,057) 918,812 (2,887,527)	Computer and communication equipment 593,077 15,758 (10,270) 33,397 (49,163)	Test equipment 115,367 225 (918) 2,466 -	Transportation equipment 614,205 2,609 (4,799) 12,045 (61,898)	Office equipment 824,475 11,069 (10,225) 20,613 (85,074)	Other equipment 110,137 1,386 (1,698) - (2,971)	Equipment to be inspected and construction in progress	Total 51,373,600 1,709,549 (477,781) - (5,011,192)
								2,793,987 1,398,592 - (1,111,381) (252,323)
$ 1,607,843	16,185,859	24,841,786	582,799	117,140	562,162	760,858	106,854	2,828,875	47,594,176
$ 1,626,928 - - - 23,703	16,367,909 13,562 (2,442) 391,035 767,556	23,143,581 461,078 (391,687) 1,626,071 1,302,084	524,743 22,394 (19,963) 16,244 21,345	121,169 2,690 (874) - -	712,250 12,280 (11,987) (131,758) 35,983	674,087 15,380 (6,126) 82,261 36,025	104,760 1,105 (477) - 1,511	2,512,956 1,687,603 - (1,983,853) 127,506	45,788,383 2,216,092 (433,556) - 2,315,713
$ 1,650,631	17,537,620	26,141,127	564,763	122,985	616,768	801,627	106,899	2,344,212	49,886,632
$ - - - - - -	8,891,490 329,669 - (80,681) 7,012 (835,974)	17,691,969 998,960 (1,593) (296,227) 2,286 (1,699,139)	449,094 36,122 - (9,812) 1,142 (36,928)	102,400 3,869 - (863) - -	336,396 65,365 - (4,382) (9,351) (36,860)	598,993 34,245 - (9,888) (1,089) (58,787)	87,923 3,066 - (1,430) - (2,200)	- - - - - -	28,158,265 1,471,296 (1,593) (403,283) - (2,669,888)
$ -	8,311,516	16,696,256	439,618	105,406	351,168	563,474	87,359	-	26,554,797
$ - - - - - -	7,778,231 335,663 - (1,997) 19,915 370,557	14,623,148 1,022,750 22,591 (299,382) 55,840 1,283,789	407,774 25,796 - (19,258) 48 15,954	102,788 4,830 - (870) - -	331,875 61,117 - (9,881) (75,803) 16,838	511,110 35,943 38 (6,086) - 25,387	81,210 3,334 - (405) - 1,090	- - - - - -	23,836,136 1,489,433 22,629 (337,879) - 1,713,615
$ -	8,502,369	16,708,736	430,314	106,748	324,146	566,392	85,229	-	26,723,934
$ 1,655,182	8,860,251	9,223,460	143,983	12,967	277,809	225,482	22,214	2,793,987	23,215,335
$ 1,607,843	7,874,343	8,145,530	143,181	11,734	210,994	197,384	19,495	2,828,875	21,039,379
$ 1,626,928	8,589,678	8,520,433	116,969	18,381	380,375	162,977	23,550	2,512,956	21,952,247
$ 1,650,631	9,035,251	9,432,391	134,449	16,237	292,622	235,235	21,670	2,344,212	23,162,698

(Continued)

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

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

The Group has been constructing a new development center, plant, and expanding production line since the year 2021. As of June 30, 2025, the projects were still ongoing, with the costs recorded as construction in progress and equipment to be inspected. For significant unrecognized contractual commitments related to the acquisition of property, plant, and equipment, please refer to Note (9)(b).

As of June 30, 2025, December 31, 2024 and June 30, 2024 the property, plant and equipment of the Group were not pledged as collateral for its loan.

(g) Right-of-use assets

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

Cost: Balance on January 1, 2025 Additions Effect of changes in foreign exchange rates Balance on June 30, 2025 Balance on January 1, 2024 Effect of changes in foreign exchange rates Balance on June 30, 2024 Accumulated depreciation and impairment losses: Balance on January 1, 2025 Depreciation Effect of changes in foreign exchange rates Balance on June 30, 2025 Balance on January 1, 2024 Depreciation Effect of changes in foreign exchange rates Balance on June 30, 2024 Carrying amount: Balance on January 1, 2025 Balance on June 30, 2025 Balance on January 1, 2024 Balance on June 30, 2024	Land $ 1,968,728 28,417 (210,623) $ 1,786,522 $ 1,842,485 101,497 $ 1,943,982 $ 278,564 24,749 (31,257) $ 272,056 $ 215,441 24,645 12,128 $ 252,214 $ 1,690,164 $ 1,514,466 $ 1,627,044 $ 1,691,768	Buildings 99,106 - (9,735) 89,371 92,511 4,606 97,117 21,625 16,010 (3,001) 34,634 44,302 16,020 2,318 62,640 77,481 54,737 48,209 34,477	Machinery equipment - - - - 15,240 867 16,107 - - - - 8,422 1,256 495 10,173 - - 6,818 5,934	Other equipment 2,609 - (278) 2,331 2,443 139 2,582 1,793 197 (206) 1,784 1,297 199 77 1,573 816 547 1,146 1,009	Total 2,070,443 28,417 (220,636)
					1,878,224
					1,952,679 107,109
					2,059,788
					301,982 40,956 (34,464)
					308,474
					269,462 42,120 15,018
					326,600
					1,768,461
					1,569,750
					1,683,217
					1,733,188

(Continued)

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

(h) Investment property

The cost, depreciation, and impairment of the Investment property of the Group for the six months ended June 30, 2025 and 2024 were as follows:

Cost: Balance on January 1, 2025 Disposal Effect of changes in foreign exchange rates Balance on June 30, 2025 Balance on January 1, 2024 Disposals Effect of changes in foreign exchange rates Balance on June 30, 2024 Accumulated depreciation and impairment losses: Balance on January 1, 2025 Disposal Effect of changes in foreign exchange rates Balance on June 30, 2025 Balance on January 1, 2024 Depreciation Disposal Effect of changes in foreign exchange rates Balance on June 30, 2024 Carrying amount: Balance on January 1, 2025 Balance on June 30, 2025 Balance on January 1, 2024 Balance on June 30, 2024	Owned property Land Buildings $ 6,858 404,980 - (122,567) - (32,490) $ 6,858 249,923 $ 16,017 406,284 (9,559) (22,312) 400 20,328 $ 6,858 404,300 $ - 355,110 - (110,310) - (28,279) $ - 216,521 $ - 352,152 - 57 - (14,016) - 16,317 $ - 354,510 $ 6,858 49,870 $ 6,858 33,402 $ 16,017 54,132 $ 6,858 49,790	Total 411,838 (122,567) (32,490) 256,781 422,301 (31,871) 20,728 411,158 355,110 (110,310) (28,279) 216,521 352,152 57 (14,016) 16,317 354,510 56,728 40,260 70,149 56,648
	Land $ 6,858 - - $ 6,858 $ 16,017 (9,559) 400 $ 6,858 $ - - - $ - $ - - - - $ - $ 6,858 $ 6,858 $ 16,017 $ 6,858

In April 2025, the Group signed an agreement, wherein the buyer, an entity, will purchase Yuanhong City real estate from the Group. In June 2025, the transaction for 2nd floor of Yuanhong City real estate has been completed, with a sale price of $92,984 thousand, resulting in $80,727 thousand recognized as gain on disposal of assets.

The Group signed a sales agreement in March 2024 to sell Eagle Crest, an American real estate. The sale price was $42,656 thousand, and the sale has been completed in the month when the sales agreement was signed, and $24,801 thousand was recognized as gain on disposal of assets.

(Continued)

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

Except as disclosed above, there were no material differences between the fair value of investment properties and that of disclosed in Note 6(h) to the 2024 consolidated financial statements.

As of June 30, 2025, December 31, 2024 and June 30, 2024, the Investment property of the Group was not pledged as collateral for its loans.

(i)

Intangible assets

The cost, amortization and impairment of the intangible assets of the Group for the six months ended June 30, 2025 and 2024 were as follows:

Costs Balance on January 1, 2025 Additions Disposal / Obsolescence Effect of changes in foreign exchange rates Balance on June 30, 2025 Balance on January 1, 2024 Additions Disposal / Obsolescence Effect of changes in foreign exchange rates Balance on June 30, 2024 Accumulated amortization and impairment losses Balance on January 1, 2025 Amortization Disposal / Obsolescence Effect of changes in foreign exchange rates Balance on June 30, 2025 Balance on January 1, 2024 Amortization Disposal / Obsolescence Effect of changes in foreign exchange rates Balance on June 30, 2024	Goodwill $ 439,101 - - (13,521) $ 425,580 $ 431,028 - - 6,772 $ 437,800 $ 122,967 - - (12,838) $ 110,129 $ 115,304 - - 6,428 $ 121,732	Computer software 449,680 56,882 (17,675) (39,755) 449,132 364,866 64,259 (19,559) 15,931 425,497 306,362 40,926 (17,084) (29,611) 300,593 256,892 36,188 (19,559) 11,892 285,413	Total 888,781 56,882 (17,675) (53,276) 874,712 795,894 64,259 (19,559) 22,703 863,297 429,329 40,926 (17,084) (42,449) 410,722 372,196 36,188 (19,559) 18,320 407,145

(Continued)

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

Carrying amounts: Balance on January 1, 2025 Balance on June 30, 2025 Balance on January 1, 2024 Balance on June 30, 2024	Goodwill $ 316,134 $ 315,451 $ 315,724 $ 316,068	Computer software 143,318 148,539 107,974 140,084	Total
			459,452
			463,990
			423,698
			456,152

The Group determined whether an impairment loss of goodwill shall be recognized based on experience and actual operating results. As of June 30, 2025, December 31, 2024 and June 30, 2024, no impairment loss has been recognized.

(j) Short-term borrowings

The short-term borrowings were summarized as follows:

Unsecured bank loans Range of interest rates	June 30, 2025 $ 2,284,283 1.70%~6.30%	December 31, 2024 2,983,008 1.70%~6.50%	June 30, 2024
			3,018,344
			1.645%~6.30%

(k) Long-term borrowings

The details were as follows:

Unsecured bank loans Unsecured bank loans Other long-term borrowings Less: current portion Total Range of interest rates Period	Currency	June 30, 2025 $ - 1,568,678 63,060 1,631,738 (63,060) $ 1,568,678 0.10%~5.31% 2026	December 31, 2024 1,500,000 1,830,869 66,794 3,397,663 - 3,397,663 0.10%~5.44% 2026	June 30, 2024
	TWD USD INR			- 1,866,888 64,078
				1,930,966 -
				1,930,966
				0.10%~6.47%
				2025~2026

(Continued)

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

(l) Lease liabilities

The Group lease liabilities were as follows:

Current Non-current	June 30, 2025 $ 33,715 $ 515,222	December 31, 2024 39,408 577,463	June 30, 2024
			25,668
			524,132

For the maturities analysis, please refer to Note (6)(t).

The amounts recognized in profit or loss were as follows:

Interest on lease liabilities	For the three months ended June 30 2025 2024 $ 12,129 13,099	For the six months ended June 30	For the six months ended June 30
	2025 $ 12,129	2025 26,810	2024
			26,200

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

Total cash outflow for leases	For the six months ended June 30	For the six months ended June 30
	2025 $ 57,466	2024
		54,355

(i) Real estate leases

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

(ii) Other leases

The Group leased photocopiers with lease terms of eight years.

(m) Employee benefits

(i) Defined benefit plans

Management believes that there was no material volatility of the market, no material reimbursement and settlement or other material one-time events since prior fiscal year. As a result, the pension cost in the accompanying interim consolidated financial statements was measured and disclosed according to the actuarial report as of December 31, 2024 and 2023.

The expenses recognized in profit or loss for the Group amounted to $167,681 thousand, $189,659 thousand, $332,794 thousand and $331,031 thousand for the three months ended June 30, 2025 and 2024 and the six months ended June 30, 2025 and 2024, respectively.

(ii) Defined contribution plans

The pension costs incurred from the contributions to the pension plans amounted to $243,126 thousand, $271,351 thousand, $508,381 thousand and $535,759 thousand for the three months ended June 30, 2025 and 2024 and the six months ended June 30, 2025 and 2024, respectively.

(Continued)

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

(n) Income taxes

The details of the Group’s income tax expense were as follows:

Current tax expense Current period Adjustment for prior periods Deferred tax expense Origination and reversal of temporary differences Income tax expense	For the three months ended June 30 2025 2024 $ 575,273 758,912 184,183 20,142 759,456 779,054 14,368 (53,690) $ 773,824 725,364	For the six months ended June 30 2025 2024 1,337,590 1,550,606 168,104 19,770 1,505,694 1,570,376 (274,490) (359,303) 1,231,204 1,211,073
	2025 $ 575,273 184,183 759,456 14,368 $ 773,824	2025 1,337,590 168,104 1,505,694 (274,490) 1,231,204

The amount of income tax recognized in other comprehensive income (loss) for the three months ended June 30, 2025 and 2024 and the six months ended June 30, 2025 and 2024 were as follows:

Items that may be reclassified subsequently to profit or loss: Share of other comprehensive income (loss) of associates and joint ventures accounted for using equity method, components of other comprehensive income	For the three months ended June 30 2025 2024 $ 13,476 (1,390)	For the six months ended June 30 2025 2024 12,080 (5,154)
	2025 $ 13,476	2025 12,080

(i) Income Tax approval

The Company’ s tax returns for the years up to 2021 and 2023 have been assessed by the R.O.C. tax authorities.

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

(ii) Global Minimum Tax (GMT)

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

(Continued)

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

The Group is subject to the global minimum top-up tax under the Pillar Two tax legislation since the Income Inclusion Rule (IIR) and the domestic minimum top-up tax have been effective and implemented in Vietnam (where the subsidiaries operated from January 1, 2024), as well as in Indonesia, Singapore and Hong Kong (where the subsidiaries operated from January 1, 2025). Based on the Group’ s assessment, its subsidiaries operating in Vietnam, Indonesia, Singapore, and Hong Kong meet the criteria for one of the transitional safe harbors under the Pillar Two framework, including the Simplified ETR Test (effective tax rate exceeding 16%), the Routine Profits Test, or the De Minimis Test. Accordingly, the Group did not recognize any current income tax impact related to Pillar Two as of June 30, 2025.

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

(iii) Profit-seeking enterprise income tax returns

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

(o) Capital and other equity

As of June 30, 2025, December 31, 2024 and June 30, 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 details of capital surplus were as follows:

June 30, 2025 Treasury share transactions $ 4,143 Gain on disposal of assets 32,980 Capital surplus-premium from merger 2,160 Donation from shareholders 5,669 Issued shares of subsidiaries not recognized in proportion to shareholding 2,234 Difference between consideration and carring amount of subsidiaries acquired or disposed 183 $ 47,369	December 31, 2024 4,143 32,980 2,160 5,768 3,851 183 49,085	June 30, 2024
		4,143 32,980 2,160 4,537 6,306 183
		50,309

(Continued)

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated 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) Retained earnings

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

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

1) Legal reserve

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

2) Special reserve

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

(Continued)

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

Dividends distributed to ordinary shareholders Cash	2024 Amount (dollar) Total $ 5.10 5,036,162	2023
	Amount (dollar) $ 5.10	Amount (dollar) Total 4.30 4,246,176

(iii) Other equity interest after tax

Balance on January 1, 2025 Exchange differences on translation of foreign financial statement Balance on June 30, 2025 Balance on January 1, 2024 Exchange differences on translation of foreign financial statement Balance on June 30, 2024	Exchange differences on translation of foreign financial statement $ 360,006 (2,761,363) $ (2,401,357) $ (1,127,303) 1,299,486 $ 172,183

(iv) Non-controlling interests (NCIs)

Balance on January 1 Shares attributed to non-controlling interests Net profit Foreign currency translation differences for foreign operations Changes in ownership interests in subsidiaries Earnings distribution to non-controlling interests Balance on June 30	For the six months ended June 30 2025 2024 $ 1,988,831 1,894,583 156,186 177,328 (189,261) 100,309 1,617 6,586 (229,057) (329,784) $ 1,728,316 1,849,022
	2025 $ 1,988,831 156,186 (189,261) 1,617 (229,057) $ 1,728,316

(Continued)

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

(p) Earnings per share

For the three months ended June 30, 2025 and 2024 and the six months ended June 30, 2025 and 2024, the Company’s basic earnings per share were calculated as follows:

For the three months ended June 30 2025 2024 $ 719,630 1,585,696 987,483 987,483 $ 0.73 1.60	For the six months ended June 30	For the six months ended June 30
2025 $ 719,630 987,483 $ 0.73	2025 1,868,394 987,483 1.89	2024
		2,856,342
		987,483
		2.89

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

(q) Revenue from contracts with customer
(i) Disaggregation of revenue

For the three months ended June 30, 2025	For the three months ended June 30, 2025	For the three months ended June 30, 2025
Segments of footwear manufacturing and sales $ 14,913,986 1,601,097 1,167,674 441,228 533,550 645,365 $ 19,302,900 $ 19,302,900 - $ 19,302,900	Other Segments 459,069 303,856 3,677 5,185 21,211 303,820 1,096,818 - 1,096,818 1,096,818	Total 15,373,055 1,904,953 1,171,351 446,413 554,761 949,185
		20,399,718
		19,302,900 1,096,818
		20,399,718

(Continued)

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

For the three months ended June 30, 2024	For the three months ended June 30, 2024	For the three months ended June 30, 2024
Segments of footwear manufacturing and sales Other Segments Total $ 16,373,620 580,009 16,953,629 1,867,119 281,372 2,148,491 953,305 130 953,435 1,028,203 3,150 1,031,353 507,390 18,307 525,697 406,296 247,795 654,091 $ 21,135,933 1,130,763 22,266,696 $ 21,135,933 - 21,135,933 - 1,130,763 1,130,763 $ 21,135,933 1,130,763 22,266,696 For the six months ended June 30, 2025		Total
		16,953,629 2,148,491 953,435 1,031,353 525,697 654,091
		22,266,696
		21,135,933 1,130,763
		22,266,696
	Other Segments 891,964 656,745 9,761 6,155 29,239 596,077 2,189,941 - 2,189,941 2,189,941	Total
		31,181,673 3,900,448 2,324,611 914,837 1,073,840 1,727,132
		41,122,541
		38,932,600 2,189,941
		41,122,541

(Continued)

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

Primary geographical markets Singapore America Switzerland Mainland China Mexico Other countries Major products/services lines Manufacturing and sale of footwear Others Contract balances Accounts receivable Less: allowance for credit loss Total Contract liabilities		For the six	months ended June 30, 2024 Other Segments Total 1,001,144 33,167,598 547,025 4,265,481 209 1,740,771 9,037 1,510,486 36,312 966,674 479,831 1,232,137 2,073,558 42,883,147 - 40,809,589 2,073,558 2,073,558 2,073,558 42,883,147 December 31, 2024 June 30, 2024 8,118,995 8,808,258 - (7,972) 8,118,995 8,800,286 1,141 965
			Other Segments 1,001,144 547,025 209 9,037 36,312 479,831 2,073,558 - 2,073,558 2,073,558 December 31, 2024 8,118,995 - 8,118,995 1,141
	$ $ $

(ii) Contract balances

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

(r) Compensation to employees and directors

On May 28, 2025, the Company’ s shareholders’ meeting resolved to amend the Articles of Incorporation. Under the revised Articles, if there is profit for the year, then, a minimum of 2.0% shall be allocated as employee compensation (of which a minimum of 30% shall be allocated to nonmanagerial employees) and a maximum of 1.8% as director compensation. However, if the Company has accumulated deficits, the profit should be reserved to offset and deficit.

Prior to the amendment, the Articles stipulated that if there is profit for the year, then, a minimum of 2.0% shall be allocated as employee compensation and a maximum of 1.8% as director compensation. However, if the Company has accumulated deficits, the profit should be reserved to offset and deficit.

(Continued)

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

The Company (reversed) estimated its employee compensation at respectively $(14,029) thousand, $39,770 thousand, $52,807 thousand and $77,600 thousand for the three months ended June 30, 2025 and 2024 and the six months ended June 30, 2025 and 2024, and estimated its director compensation at $18,708 thousand, $37,370 thousand, $45,132 thousand and $65,899 thousand for the three months ended June 30, 2025 and 2024 and the six months ended June 30, 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.

For the years ended December 31, 2024 and 2023, the remunerations to employees amounted to $180,000 thousand and $140,000 thousand; and directors amounted to $105,300 thousand and $91,000 thousand, respectively. The information is available on the Market Observation Post System website. There was no difference between the amounts approved by Board of Directors.

(s) Non-operating income and expenses

(i) Interest income

The details of the Group's interest income for the three months ended June 30, 2025 and 2024 and the six months ended June 30, 2025 and 2024 were as follows:

Interest income from bank deposits	For the three months ended June 30 2025 2024 $ 15,668 20,063	For the six months ended June 30	For the six months ended June 30
	2025 $ 15,668	2025 26,880	2024
			32,797

(ii) Other income

The details of the Group's other income for the three months ended June 30, 2025 and 2024 and the six months ended June 30, 2025 and 2024 were as follows:

For the three months ended June 30 2025 2024 $ 4,876 5,045 10,419 92,623 73,598 57,220 $ 88,893 154,888	For the six months ended June 30	For the six months ended June 30
2025 $ 4,876 10,419 73,598 $ 88,893	2025 11,106 25,549 164,173 200,828	2024
		6,485 104,748 169,885
		281,118

(Continued)

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

(iii) Other gains and losses

The details of the Group's other gains and losses for the three months ended June 30, 2025 and 2024 and the six months ended June 30, 2025 and 2024 were as follows:

For the three months ended June 30 2025 2024 Foreign exchange (losses) gains $ (793,238) 282,152 Losses on disposal of property, plant and equipment (6,501) (15,755) Gain on disposal of investment property 80,727 326 Reversal (porvision) of impairment loss 1,490 (22,491) Others (142,626) (5,354) $ (860,148) 238,878	For the six months ended June 30 2025 2024 (579,602) 684,610 (6,110) (15,891) 80,727 24,801 1,593 (22,629) (143,283) (6,818) (646,675) 664,073	For the six months ended June 30 2025 2024 (579,602) 684,610 (6,110) (15,891) 80,727 24,801 1,593 (22,629) (143,283) (6,818) (646,675) 664,073
	2025 (579,602) (6,110) 80,727 1,593 (143,283) (646,675)
		664,073

(iv) Financial costs

The details of the Group's financial costs for the three months ended June 30, 2025 and 2024 and the six months ended June 30, 2025 and 2024 were as follows:

Interest expense	For the three months ended June 30 2025 2024 $ 59,045 72,749	For the six months ended June 30 2025 2024 122,228 135,765
	2025 $ 59,045	2025 122,228

(t) Financial instruments
(i) Credit risks
- 1) Credit risk exposure

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

2) The concentration of credit risk

On June 30, 2025, December 31, 2024 and June 30, 2024, 69%, 69% and 74% of the Group’s total receivables were concentrated within a single overseas customer.

(Continued)

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

(ii) Liquidity risk

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

June 30, 2025 Non-derivative financial liabilities Notes and accounts payable Other payables Dividends payable Unsecured bank loans Other long-term borrowings Lease liabilities December 31, 2024 Non-derivative financial liabilities Notes and accounts payable Other payables Dividends payable Unsecured bank loans Other long-term borrowings Lease liabilities June 30, 2024 Non-derivative financial liabilities Notes and accounts payable Other payables Dividends payable Unsecured bank loans Other long-term borrowings Lease liabilities	Carrying amount $ 3,705,548 3,921,017 5,040,257 3,852,961 63,060 548,937 $ 17,131,780 $ 4,131,129 5,619,372 11,385 6,313,877 66,794 616,871 $ 16,759,428 $ 4,472,236 4,269,513 4,246,176 4,885,232 64,078 549,800 $ 18,487,035	Contractual cash flows 3,705,548 3,921,017 5,040,257 3,961,995 63,108 1,346,661 18,038,586 4,131,129 5,619,372 11,385 6,543,413 66,879 1,487,446 17,859,624 4,472,236 4,269,513 4,246,176 5,088,179 64,191 1,408,204 19,548,499	Less than 6 months 3,704,809 3,352,251 5,040,257 2,222,505 32 31,146 14,351,000 4,129,971 5,202,219 11,385 2,709,433 33 59,875 12,112,916 4,470,891 3,632,521 4,246,176 2,424,877 32 31,313 14,805,810	6 to 12 months 739 568,766 - 160,642 63,076 52,693 845,916 1,158 417,153 - 427,624 34 33,180 879,149 1,345 636,992 - 772,223 32 46,066 1,456,658	1 to 2 years - - - 1,578,848 - 77,657 1,656,505 - - - 3,406,356 66,812 88,159 3,561,327 - - - 1,891,079 64,127 70,672 2,025,878	2 to 5 years - - - - - 168,221 168,221 - - - - - 187,155 187,155 - - - - - 171,993 171,993	More than 5 years
							- - - - - 1,016,944
							1,016,944
							- - - - - 1,119,077
							1,119,077
							- - - - - 1,088,160
							1,088,160

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

(Continued)

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

(iii) Currency risks
1) Exposure to currency risks

			June 30, 2025	June 30, 2025
	Foreign currency
		(In thousands)	Exchange rate		TWD
Financial assets
Monetary items
USD	$	299,336	USD`：`TWD	29.250	8,755,568
		30,944	USD`：`CNY	7.1586	905,105
		1,326	USD`：`INR	85.4340	38,796
		0.16	USD`：`VND	26,120	5
VND		627,449,755	VND`：`USD	0.00004	690,195
INR		1,564,434	INR`：`USD	0.0117	535,662
IDR		283,887,049	IDR`：`USD	0.0001	510,997
Non-monetary items
USD		42,584	USD`：`TWD	29.250	1,245,578
Financial liabilities
Monetary items
USD		35,509	USD`：`TWD	29.250	1,038,627
		9,170	USD`：`CNY	7.1586	268,223
		147	USD`：`VND	26,120	4,299
VND		1,425,691,576	VND`：`USD	0.00004	1,568,261
INR		3,193,807	INR`：`USD	0.0117	1,093,559
IDR		1,104,572,926	IDR`：`USD	0.0001	1,988,231
			December 31, 2024
	Foreign currency
		(In thousands)	Exchange rate		TWD
Financial assets
Monetary items
USD	$	273,437	USD`：`TWD	32.735	8,950,954
		40,115	USD`：`CNY	7.1844	1,313,177
		86	USD`：`VND	25,401	2,809
VND		708,229,589	VND`：`USD	0.00004	920,698
INR		2,159,483	INR`：`USD	0.0117	826,868
IDR		244,095,967	IDR`：`USD	0.0001	488,192
Non-monetary items
USD		40,208	USD`：`TWD	32.735	1,316,221
					(Continued)

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

December 31, 2024 Foreign currency (In thousands) Exchange rate TWD Financial liabilities Monetary items USD 31,523 USD`：`TWD 32.735 1,031,920 12,176 USD`：`CNY 7.1844 398,578 39 USD`：`VND 25,401 1,284 VND 1,990,486,088 VND`：`USD 0.00004 2,587,632 INR 2,787,297 INR`：`USD 0.0117 1,067,256 IDR 1,100,833,975 IDR`：`USD 0.0001 2,201,668 June 30, 2024 Foreign currency (In thousands) Exchange rate TWD Financial assets Monetary items USD $ 278,744 USD`：`TWD 32.400 9,031,289 22,287 USD`：`CNY 7.1268 722,111 364 USD`：`VND 25,363 11,802 VND 748,258,318 VND`：`USD 0.00004 972,736 INR 2,750,698 INR`：`USD 0.0120 1,067,821 IDR 99,642,248 IDR`：`USD 0.0001 199,284 Non-monetary items USD 36,943 USD`：`TWD 32.400 1,196,941 Financial liabilities Monetary items USD 35,480 USD`：`TWD 32.400 1,149,551 12,117 USD`：`CNY 7.1268 392,576 115 USD`：`VND 25,363 3,742 VND 1,442,715,942 VND`：`USD 0.00004 1,875,531 INR 3,262,781 INR`：`USD 0.0120 1,266,612 IDR 1,211,707,464 IDR`：`USD 0.0001 2,423,415		December 31, 2024
	Foreign currency (In thousands) 31,523 12,176 39 1,990,486,088 2,787,297 1,100,833,975	Exchange rate TWD USD`：`TWD 32.735 1,031,920 USD`：`CNY 7.1844 398,578 USD`：`VND 25,401 1,284 VND`：`USD 0.00004 2,587,632 INR`：`USD 0.0117 1,067,256 IDR`：`USD 0.0001 2,201,668 June 30, 2024

(Continued)

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

2) Sensitivity analysis

The Group’s exposure to foreign currency risk arises from the translation of the foreign currency exchange gains and losses on cash and cash equivalents, accounts receivable, other receivables, loans and borrowings, accounts payable and other payables that are denominated in foreign currency. An appreciation or depreciation of 5% of the TWD against the USD, VND, INR and IDR for the six months ended June 30, 2025 and 2024, would have increased the net profit before tax by $273,756 thousand and $244,681 thousand, respectively. Performed based on the same basis, the analysis of both periods assumed that all other variables remained constant.

3) Foreign exchange gain and loss on monetary items

Since the Group has many kinds of functional currency, the information on foreign exchange gain on monetary items is disclosed by total amount. For the six months ended June 30, 2025 and 2024, foreign exchange (loss) gain (including realized and unrealized portions) amounted to $(579,602) thousand and $684,610 thousand, respectively.

(iv) Interest rate analysis

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

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

If the interest rate increases or decreases by 50 basis points, with all other variable factors remaining constant, the Group’ s net profit before tax would have decreased by $6,286 thousand and $8,804 thousand for the six months ended June 30, 2025 and 2024, respectively. This was mainly due to the Group’s deposits and borrowings at variable rates.

(v) Fair value information
1) Financial instruments not measured at fair value

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

2) Financial instruments measured at fair value

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

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

(Continued)

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

b) Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
c) Level 3: inputs for the assets or liability that are not based on observable market data (unobservable inputs).
(vi) Valuation techniques for financial instruments measured at fair value

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

(u) Financial risk management
(i) Overview

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

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

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

(ii) Risk management framework

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

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

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

(Continued)

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

(iii) Credit risk

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

1) Trade and other receivables

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

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

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

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

2) Investment

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

3) Guarantees

As of June 30, 2025, December 31, 2024 and June 30, 2024, there was no guarantee outstanding.

(Continued)

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

(iv) Liquidity risk

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

The Group monitors the level of expected cash outflows on trade and other payables. This excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters. In addition, the total amount of unused credit facilities as of June 30, 2025, December 31, 2024 and June 30, 2024, amounted to $14,860,458 thousand, $13,798,013 thousand and $15,295,899 thousand, respectively.

(v) Market risk

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

1) Currency risk

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

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

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

2) Interest rate risk

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

(Continued)

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

(v) Capital management

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

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

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

Total liabilities Less: cash and cash equivalents Net debt Total equity Total capital Debt-to-equity ratio on period end	June 30, 2025 $ 26,628,546 (3,027,999) 23,600,547 22,637,520 $ 46,238,067 % 51.04	December 31, 2024 25,563,900 (5,140,543) 20,423,357 28,828,882 49,252,239 % 41.47	June 30, 2024 27,930,303 (3,258,059) 24,672,244 24,915,481 49,587,725 % 49.75

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

The Group's investing and financing activities which did not affect the current cash flow for the six months ended June 30, 2025 and 2024.

Reconciliation of liabilities arising from financing activities was as follows:

January 1, 2025 Long-term borrowings $ 3,397,663 Short-term borrowings 2,983,008 Lease liabilities 616,871 Total liabilities from financing activities $ 6,997,542	Cash flows (1,572,682) (589,498) (30,656) (2,192,836)	Non-cash Others - - 28,417 28,417	changes Foreign exchange movement (193,243) (109,227) (65,695) (368,165)	June 30, 2025
				1,631,738 2,284,283 548,937
				4,464,958

January 1, 2024 Long-term borrowings $ 3,509,219 Short-term borrowings 2,250,109 Lease liabilities 547,619 Total liabilities from financing activities $ 6,306,947	Cash flows (1,694,649) 722,938 (28,155) (999,866)	Non-cash Others - - - -	changes Foreign exchange movement 116,396 45,297 30,336 192,029	June 30, 2024
				1,930,966 3,018,344 549,800
				5,499,110

(Continued)

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

(7) Related-party transactions:

(a) Name of related parties and relationship

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

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

(b) Significant transactions with related parties
(i) Other revenue

The Group is a joint venture under the joint agreement	For the three months ended June 30 2025 2024 $ 2,317 2,576	For the six months ended June 30	For the six months ended June 30
	2025 $ 2,317	2025 4,957	2024
			4,931

(ii) Receivables due from Related Parties

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

Account item Category of related party June 30, 2025 Other receivables The Group is a joint venture under the joint agreement $ 759	December 31, 2024 963	June 30, 2024 815

(iii) Property transactions

Purchases of property, plant and equipment

To support the expansion of development center at Feng Tay factory, the Company purchased a parcel of land located in Douliu City, Yunlin County from a related party in May 2025, with the total contract amount of $249,140 thousand, and an additional related cost of approximately $6,700 thousand. As of June 30, 2025, prepayments totaling $124,570 thousand was recorded under “Other non-current assets, others”. The acquisition price of the land was determined with reference to an appraisal report issued by Elite Real Estate Appraisers Joint Firm.

(Continued)

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

(c) Key management personnel transactions

Key management personnel compensation comprised:

For the three months ended June 30 For the six months ended June 30 2025 2024 2025 2024 Short-term employee benefits $ 72,416 91,669 145,676 173,317 Post-employment benefits 1,316 1,241 2,799 2,510 $ 73,732 92,910 148,475 175,827 ledged assets: The book values of pledged assets were as follows: Pledged assets Object June 30, 2025 December 31, 2024 June 30, 2024 Other current financial assets Customs deposit and lease deposit $ 858 956 955 Other non-current financial assets Customs deposit and lease deposit 89,414 103,172 109,550 $ 90,272 104,128 110,505	For the three months ended June 30 For the six months ended June 30 2025 2024 2025 2024 Short-term employee benefits $ 72,416 91,669 145,676 173,317 Post-employment benefits 1,316 1,241 2,799 2,510 $ 73,732 92,910 148,475 175,827 ledged assets: The book values of pledged assets were as follows: Pledged assets Object June 30, 2025 December 31, 2024 June 30, 2024 Other current financial assets Customs deposit and lease deposit $ 858 956 955 Other non-current financial assets Customs deposit and lease deposit 89,414 103,172 109,550 $ 90,272 104,128 110,505	For the six months ended June 30	For the six months ended June 30
		2025	2024
		145,676 2,799	173,317 2,510
		148,475	175,827
			June 30, 2024
Other current financial assets Other non-current financial assets	Customs deposit and lease deposit Customs deposit and lease deposit		955 109,550
			110,505

(8) Pledged assets:

The book values of pledged assets were as follows:

(9) Commitments and contingencies:

(a) As of June 30, 2025, December 31, 2024 and June 30, 2024, the Group has issued promissory notes for short-term and long-term borrowings of $9,132,500 thousand, $9,946,150 thousand and $9,416,000 thousand, respectively.
(b) As of June 30, 2025, December 31, 2024 and June 30, 2024, the Group had payables in respect of important construction contracts, amounting to $1,338,432 thousand, $1,541,756 thousand and $1,777,010 thousand, respectively.

(10) Losses Due to Major Disasters: None

(11) Subsequent Events: None

(Continued)

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

(12) Others:

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

follows:
By function By item	For the three months ended June 30, 2025			For the three months ended June 30, 2024
	Cost of Sale	Operating Expense	Total	Cost of Sale	Operating Expense	Total
Employee benefits Salary Labor and health insurance Pension Other employee benefits Depreciation Amortization	$ 4,299,238 482,051 317,102 482,019 492,846 3,270	1,416,897 142,378 93,705 137,552 236,333 17,002	5,716,135 624,429 410,807 619,571 729,179 20,272	4,906,247 540,978 360,981 608,090 534,655 1,326	1,745,342 147,173 100,029 176,578 249,272 17,841	6,651,589 688,151 461,010 784,668 783,927 19,167

By function By item	For the six months ended June 30, 2025			For the six months ended June 30, 2024
	Cost of Sale	Operating Expense	Total	Cost of Sale	Operating Expense	Total
Employee benefits Salary Labor and health insurance Pension Other employee benefits Depreciation Amortization	$ 8,986,537 1,039,259 655,087 1,036,433 1,034,123 5,863	3,046,936 302,534 186,088 300,538 478,129 35,063	12,033,473 1,341,793 841,175 1,336,971 1,512,252 40,926	9,798,727 1,101,818 680,691 1,208,899 1,058,350 2,739	3,379,581 298,569 186,099 336,704 473,260 33,449	13,178,308 1,400,387 866,790 1,545,603 1,531,610 36,188

(b) Seasonality of operation

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

(Continued)

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

(13) Other disclosures

(a) Information on significant transactions

The followings is the information on significant transactions required by the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” for the Group for the six months ended June 30, 2025:

i. Loans to other parties: None
ii. Guarantees and endorsements for other parties: None
iii. Securities held as of June 30, 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 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. Dona Pacific (Vietnam)Co., Ltd.	Parent and subsidiary `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞`	Sale Purchase Sale Purchase Sale Purchase Sale Purchase Sale Purchase Sale Purchase Sale Purchase Sale Purchase Purchase Sale Sale	746,302 3,061,113 567,421 431,802 1,186,222 2,414,674 808,769 1,779,199 1,165,837 2,219,274 326,254 1,386,133 269,118 1,087,931 612,053 2,036,151 608,323 105,905 806,365	1% 7% 1% 1% 2% 5% 2% 4% 2% 5% 1% 3% 1% 2% 1% 4% 1% - 2%	90 days 20 days 90 days 30 days 60/90 days 30 days 60/90 days 30 days 30 days 30 days 15 days 15 days 15 days 15 days 15 days 15 days 60 days 15 days 30 days	Selling price of goods was determined through negotiations and there were no other transactions with non-related parties to compare with. `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞`	- - - - - - - - - - - - - - - - - - -	329,920 (360,433) 599,579 (76,201) 748,992 (686,770) 445,261 (619,946) 391,729 (413,623) 52,522 (120,359) 43,281 (62,669) 64,628 (256,873) (185,404) 36,588 151,885	3% (4%) 5% (1%) 6% (8%) 4% (8%) 3% (5%) - (1%) - (1%) 1% (3%) (2%) - 1%	- - - - - - - - - - - - - - - - - - -

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

Name of company	Related party	Nature of relationship		Transaction details	Transaction details		Transactions 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 `〞` Fujian Lifeng Footwear Industrial Development Company Limited `〞` `〞` Fujian Xiefeng Footwear Company Limited 〞〞 Fujian San Feng Footwear Company Limited `〞`. Fujian Great Hope Footwear Company Limited Suzhou Yufeng Plastics Technology Co., Ltd. Vietnam Shoe Majesty Co., Ltd. Hong Kong Shoe Majesty Trading Company Limited Dona Victor Footwear Co., Ltd. `〞` `〞`	Dona Pacific (Vietnam) Co., Ltd. Vietnam Dona Orient Co., Ltd. `〞` Dona Victor Footwear Co., Ltd. `〞` Vietnam Dona Standard Footwear Co., Ltd `〞` Vung Tau Orient Co., Ltd `〞` Vietnam Nam Ha Footwear Company Limited `〞` Feng Tay Enterprises Co., Ltd. `〞` Feng Tay Enterprises Co., Ltd. `〞` Fujian Xiefeng Footwear Company Limited Feng Tay Enterprises Co., Ltd Fujian Lifeng Footwear Industrial Development Company Limited Feng Tay Enterprises Co., Ltd Feng Tay Enterprises Co., Ltd. `〞` Feng Tay Enterprises Co., Ltd. Feng Tay Enterprises Co., Ltd. Hong Kong Shoe Majesty Trading Company Limited Vietnam Shoe Majesty Co., Ltd. Feng Tay Enterprises Co., Ltd. `〞` Dona Victor Molds Mfg. Co., Ltd.	Parent and subsidiary `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` Subsidiary and parent `〞` Subsidiary and parent `〞` Associate Subsidiary and parent Associate Subsidiary and parent Subsidiary and parent `〞` Subsidiary and parent Subsidiary and parent Associate Associate Subsidiary and parent `〞` Associate	Purchase Sale Purchase Sale Purchase Sale Purchase Sale Purchase Sale Purchase Sale Purchase Sale Purchase `〞` Sale 〞 Purchase Sale Purchase Sale Purchase Sale Purchase Sale Purchase `〞`	3,300,658 1,259,761 2,968,917 604,184 3,504,541 2,072,870 8,351,033 561,723 1,640,354 180,166 630,845 3,061,113 746,302 1,386,133 326,254 116,983 2,036,151 116,983 612,053 1,087,931 269,118 608,323 105,905 3,474,573 3,474,573 3,504,541 604,184 109,363	7% 3% 6% 1% 8% 4% 18% 1% 4% - 1% 100% 36% 85% 39% 14% 85% 5% 46% 69% 33% 99% 76% 100% 100% 100% 70% 13%	15 days 30 days 30 days 30 days 30 days 15 days 30 days 120 days 10 days 90 days 10 days 20 days 90 days 15 days 15 days 15~20 days 15 days 15~20 days 15 days 15 days 15 days 60 days 15 days Payment after Delivery Payment after Delivery 30 days 30 days 60 days	Selling price of goods was determined through negotiations and there were no other transactions with non-related parties to compare with `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞`. `〞` `〞`. `〞` `〞`. `〞` `〞` `〞` `〞` `〞`. `〞` `〞` `〞` `〞` `〞`	- - - - - - - - - - - - - - - - - - - - - - - - - - - -	(411,795) 171,875 (550,703) 110,328 (697,377) 280,068 (1,502,610) 329,682 (116,748) 93,766 (53,539) 360,433 (329,920) 120,359 (52,522) (22,674) 256,873 22,674 (64,628) 62,669 (43,281) 185,404 (36,588) 1,759,580 (1,759,580) 697,377 (110,328) (18,142)	(5%) 1% (7%) 1% (9%) 2% (19%) 3% (1%) 1% (1%) 100% (64%) 66% (39%) (17%) 78% 7% (38%) 34% (31%) 94% (89%) 100% (100%) 100% (29%) (5%)	- - - - - - - - - - - - - - - - - - - - - - - - -

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

Name of company	Related party	Nature of relationship		Transaction details	Transaction details		Transactions 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)
Dona Pacific (Vietnam) Co., Ltd. `〞` Vietnam Dona Orient Co., Ltd.	Feng Tay Enterprises Co., Ltd. `〞` Feng Tay Enterprises Co., Ltd.	Subsidiary and parent `〞` Subsidiary and parent	Sale Purchase Sale	3,300,658 806,365 2,968,917	93% 67% 72%	15 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 `〞`	- -	411,795 (151,885)	91% (40%)	- -
							`〞`	-	550,703	71%	-

`〞`	`〞`	`〞`	Purchase	1,259,761	56%	30 days	`〞`	-	(171,875)	(50%)	-
Dona Victor Molds Mfg. Co.,Ltd	Dona Victor Footwear Co., Ltd	Associate	Sale	109,363	28%	60 days	`〞`	-	18,142	33%

`〞`	Vietnam Dona	`〞`	`〞`	133,616	34%	60 days	`〞`	-	15,381	28%
Vung Tau Orient Co., Ltd.	Standard. Feng Tay Enterprises Co., Ltd.	Subsidiary and parent	Sale	1,640,354	100%	10 days
							`〞`	-	116,748	99%	-

`〞`	`〞`	`〞`	Purchase	561,723	88%	120 days	`〞`	-	(329,682)	(79%)	-
Vietnam Dona Standard Footwear Co., Ltd	Feng Tay Enterprises Co., Ltd.	Subsidiary and parent	Sale	8,351,033	98%	30 days	`〞`	-	1,502,610	98%	-

`〞`	`〞`	`〞`	Purchase	2,072,870	87%	15 days	`〞`	-	(280,068)	(37%)	-
`〞`	Dona Victor Molds	Associate	`〞`	133,616	6%	60 days	`〞`	-	(15,381)	(2%)
Vietnam Nam Ha Footwear Company Limited	Mfg. Co., Ltd. Feng Tay Enterprises Co., Ltd.	Subsidiary and parent	Sale	630,845	98%	10 days
							`〞`	-	53,539	96%	-

`〞`	`〞`	`〞`	Purchase	180,166	85%	90 days	`〞`	-	(93,766)	(57%)	-
India Tindivanam Footwear Private Limited	Feng Tay Enterprises Co., Ltd.	Subsidiary and parent	Sale	431,802	92%	30 days	`〞`	-	76,201	87%	-

`〞`	`〞`	`〞`	Purchase	567,421	93%	90 days	`〞`	-	(599,579)	(90%)	-
East Wind Footwear Company Limited (India Branch)	Feng Tay Enterprises Co., Ltd.	Subsidiary and parent	Sale	1,779,199	97%	30 days	`〞`	-	619,946	98%	-

`〞`	`〞`	`〞`	Purchase	808,769	96%	60/90 days	`〞`	-	(445,261)	(92%)	-
Lotus Footwear Enterprises Limited (India Branch)	Feng Tay Enterprises Co., Ltd.	Subsidiary and parent	Sale	2,414,674	94%	30 days	`〞`	-	686,770	96%	-

`〞`	`〞`	`〞`	Purchase	1,186,222	99%	60/90 days	`〞`	-	(748,992)	(94%)	-
Fairway Enterprises Company Limited (India Branch)	Feng Tay Enterprises Co., Ltd.	Subsidiary and parent	Sale	2,219,274	97%	30 days	`〞`	-	413,623	95%	-

`〞`	`〞`	`〞`	Purchase	1,165,837	97%	30 days	`〞`	-	(391,729)	(90%)	-

Note: Reconciliated in the preparation of the consolidated report.

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

stock:

					(In Thousands of New Taiwan Dollar)	(In Thousands of New Taiwan Dollar)	(In Thousands of New Taiwan Dollar)	(In Thousands of New Taiwan Dollar)
Name of company	Related party	Nature of relationship	Ending balance (Note 1)	Turnover	Overdue		Amounts received in subsequent period	Allowance for credit loss
					Amount	Action taken
Feng Tay Enterprises Co., Ltd. `〞` `〞` `〞`	PT Feng Tay Indonesia Enterprises India Tindivanam Footwear Private Limited Lotus Footwear Enterprises Limited (India Branch) East Wind Footwear Company Limited (India Branch)	Parent and subsidiary `〞` `〞` `〞`	329,920 599,579 748,992 445,261	3.69 2.20 3.51 4.10	- 316,871 116,632 35,488	- - - -	64,921 - 15,234 21,841	- - - -

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

Name of company	Related party	Nature of relationship	Ending balance (Note 1)	Turnover	Overdue	Overdue	Amounts received in subsequent period	Allowance for credit loss
					Amount	Action taken
Feng Tay Enterprises Co., Ltd. `〞` `〞` `〞` `〞` `〞` `〞` PT Feng Tay Indonesia Enterprises Fujian Lifeng Footwear Industrial Development Company Limited Fujian Xiefeng Footwear Company Limited Fujian Great Hope Footwear Company Limited Vietnam Shoe Majesty Co., Ltd. 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 Limited (India Branch) Fairway Enterprises Company Limited (India Branch)	Fairway Enterprises Company Limited (India Branch) `〞` 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. Feng Tay Enterprises Co., Ltd. Feng Tay Enterprises Co., Ltd. Feng Tay Enterprises Co., Ltd. Feng Tay Enterprises Co., Ltd. Hong Kong Shoe Majesty Trading 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.	Parent and subsidiary `〞` `〞` `〞` `〞` `〞` `〞` Subsidiary and parent Subsidiary and parent Subsidiary and parent Subsidiary and parent Associate Subsidiary and parent Subsidiary and parent Subsidiary and parent Subsidiary and parent Subsidiary and parent Subsidiary and parent Subsidiary and parent Subsidiary and parent	391,729 26,735 151,885 171,875 110,328 280,068 329,682 360,433 120,359 256,873 185,404 1,759,580 697,377 411,795 550,703 116,748 1,502,610 619,946 686,770 413,623	6.26 Note 2 12.28 12.93 13.68 7.73 3.51 16.58 20.60 14.16 6.60 5.08 9.16 16.55 10.12 21.66 11.60 5.95 7.39 11.37	- - - - - 8,163 - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - -	94,130 - 72,340 63,098 56,229 265,663 19,529 360,271 120,359 254,438 79,606 179,589 571,702 411,795 459,336 114,163 1,133,288 233,045 296,504 290,499	- - - - - - - - - - - - - - - - - - - -

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

vi. Business relationships and significant intercompany transactions:

(In Thousands of New Taiwan Dollar)

No. (Note1)	Name of company	Name of counter- party	Nature of relationship (Note 2)	Account name	Intercompany transactions	Intercompany transactions
					Amount	Trading terms	Percentage of the consolidated net revenue or total assets
0 `〞`	Feng Tay Enterprises Co., Ltd. `〞`	PT Feng Tay Indonesia Enterprises `〞`	1 `〞`	Sales revenue Cost of sales	746,302 3,061,113	Note 3 Note 3	1.8148% 7.4439%

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

No. (Note1)	Name of company	Name of counter- party	Nature of relationship (Note 2)		Intercompany transactions	Intercompany transactions
				Account name	Amount	Trading terms	Percentage of the consolidated net revenue or total assets
0 `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞`	Feng Tay Enterprises Co., Ltd. `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞`	PT Feng Tay Indonesia Enterprises `〞` India Tindivanam Footwear Private Limited `〞` `〞` `〞` Lotus Footwear Enterprises Limited (India Branch) `〞` `〞` `〞` East Wind Footwear Company Limited (India Branch) `〞` `〞` `〞` Fairway Enterprises Company Limited (India Branch) `〞` `〞` `〞` Fujian Lifeng Footwear Industrial Development Company Limited `〞` `〞` `〞` Fujian San Feng Footwear Company Limited `〞` `〞` `〞` Fujian Xiefeng Footwear Company Limited `〞` `〞`	1 `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞`	Accounts receivable due from related parties Accounts payable to related parties Sales revenue Cost of sales Accounts receivable due from related parties Accounts payable to related parties Sales revenue Cost of sales Accounts receivable due from related parties Accounts payable to related parties Sales revenue Cost of sales Accounts receivable due from related parties Accounts payable to related parties Sales revenue Cost of sales Accounts receivable due from related parties Accounts payable to related parties Sales revenue Cost of sales Accounts receivable due from related parties Accounts payable to related parties Sales revenue Cost of sales Accounts receivable due from related parties Accounts payable to related parties Sales revenue Cost of sales Accounts receivable due from relatedparties	329,920 360,433 567,421 431,802 599,579 76,201 1,186,222 2,414,674 748,992 686,770 808,769 1,779,199 445,261 619,946 1,165,837 2,219,274 391,729 413,623 326,254 1,386,133 52,522 120,359 269,118 1,087,931 43,281 62,669 612,053 2,036,151 64,628	90 days 20 days Note 3 Note 3 90 days 30 days Note 3 Note 3 60/90 days 30 days Note 3 Note 3 60/90 days 30 days Note 3 Note 3 30 days 30 days Note 3 Note 3 15 days 15 days Note 3 Note 3 15 days 15 days Note 3 Note 3 15 days	0.6697% 0.7316% 1.3798% 1.0500% 1.2170% 0.1547% 2.8846% 5.8719% 1.5203% 1.3940% 1.9667% 4.3266% 0.9038% 1.2584% 2.8350% 5.3967% 0.7951% 0.8396% 0.7934% 3.3707% 0.1066% 0.2443% 0.6544% 2.6456% 0.0879% 0.1272% 1.4884% 4.9514% 0.1312%

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

No. (Note1)	Name of company	Name of counter- party	Nature of relationship (Note 2)		Intercompany transactions	Intercompany transactions
				Account name	Amount	Trading terms	Percentage of the consolidated net revenue or total assets
0 `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞`	Feng Tay Enterprises Co., Ltd. `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞`	Fujian Xiefeng Footwear Company Limited Fujian Great Hope Footwear Company Limited `〞` Suzhou Yufeng Plastics Technology Co., Ltd. `〞` Dona Pacific (Vietnam) Co., Ltd. `〞` `〞` `〞` Vietnam Dona Orient Co., Ltd. `〞` `〞` `〞` Dona Victor Footwear Co., Ltd. `〞` `〞` `〞` Vietnam Dona Standard Footwear Co., Ltd. `〞` `〞` `〞` Vung Tau Orient Co., Ltd. `〞` `〞` `〞` Vietnam Nam Ha Footwear Company Limited `〞` `〞` `〞`	1 `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞`	Accounts payable to related parties Cost of sales Accounts payable to related parties Sales revenue Accounts receivable due from related parties Sales revenue Cost of sales Accounts receivable due from related parties Accounts payable to related parties Sales revenue Cost of sales Accounts receivable due from related parties Accounts payable to related parties Sales revenue Cost of sales Accounts receivable due from related parties Accounts payable to related parties Sales revenue Cost of sales Accounts receivable due from related parties Accounts payable to related parties Sales revenue Cost of sales Accounts receivable due from related parties Accounts payable to related parties Sales revenue Cost of sales Accounts receivable due from related parties Accounts payable to relatedparties	256,873 608,323 185,404 105,905 36,588 806,365 3,300,658 151,885 411,795 1,259,761 2,968,917 171,875 550,703 604,184 3,504,541 110,328 697,377 2,072,870 8,351,033 280,068 1,502,610 561,723 1,640,354 329,682 116,748 180,166 630,845 93,766 53,539	15 days Note 3 60 days Note 3 15 days Note 3 Note 3 30 days 15 days Note 3 Note 3 30 days 30 days Note 3 Note 3 30 days 30 days Note 3 Note 3 15 days 30 days Note 3 Note 3 120 days 10 days Note 3 Note 3 90 days 10 days	0.5214% 1.4793% 0.3763% 0.2575% 0.0743% 1.9609% 8.0264% 0.3083% 0.8359% 3.0634% 7.2197% 0.3489% 1.1178% 1.4692% 8.5222% 0.2239% 1.4155% 5.0407% 20.3077% 0.5685% 3.0500% 1.3660% 3.9889% 0.6692% 0.2370% 0.4381% 1.5341% 0.1903% 0.1087%

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

No. (Note1)	Name of company	Name of counter- party	Nature of relationship (Note 2)		Intercompany transactions	Intercompany transactions
				Account name	Amount	Trading terms	Percentage of the consolidated net revenue or total assets
1 `〞` 2 `〞` `〞` `〞`	Fujian Xiefeng Footwear Company Limited `〞` Dona Victor Molds Mfg. Co., Ltd. `〞` `〞` `〞`	Fujian Lifeng Footwear Industrial Development Company Limited `〞` Dona Victor Footwear Co., Ltd. `〞` Vietnam Dona Standard Footwear Co., Ltd. `〞`	3 `〞` 3 `〞` `〞` `〞`	Sales revenue Accounts receivable due from related parties Sales revenue Accounts receivable due from related parties Sales revenue Accounts receivable due from related parties	116,983 22,674 109,363 18,142 133,616 15,381	Note 3 15~20 days Note 3 60 days Note 3 60 days	0.2845% 0.0460% 0.2659% 0.0368% 0.3249% 0.0312%

Note 1: The numbers filled in as follows:

0 represents the parent company.
Subsidiaries are sorted in a numerical order starting from 1.

Note 2: Transactions labeled as follows:

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

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

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

(b) Information on investment

The following is the information on investment for the six months ended June 30, 2025

(excluding information on investment in Mainland China):

				(In Thousands of New Taiwan Dollar)	(In Thousands of New Taiwan Dollar)	(In Thousands of New Taiwan Dollar)	(In Thousands of New Taiwan Dollar)	(In Thousands of New Taiwan Dollar)	(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 June 30, 2025			Net income (losses) of investee	Share of profits/losses of investee	Note (Note 6)
				June 30, 2025	December 31, 2024	Shares	Percentage of ownership	Carrying value
Feng Tay Enterprises Co., Ltd. `〞` `〞` `〞` `〞` `〞` `〞` `〞`	PT Feng Tay Indonesia Enterprises PT Rich Valley Indonesia Growth-Link Overseas Company Limited VX Holdings Limited Shoe Majesty Co., Ltd. Dona Orient Holdings Limited Great Eastern Industries Limited Great South Private Limited	Indonesia `〞` Bermuda British Virgin Islands `〞` `〞` Hong Kong Singapore	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	1,324,722 1,063,389 5,521,531 446,117 203,466 1,529,928 30,358 37,946	1,324,722 1,063,389 5,521,531 446,117 203,466 1,529,928 30,358 37,946	53,999 519,990 6,000,000 38,280 6,120 44,753 1,000 1,700	99.99% 99.99% 100.00% 47.26% 20.40% 40.97% 100.00% 100.00%	682,266 1,054,125 14,731,532 682,889 504,837 3,555,621 31,058 16,527	(367,823) (1,823) 1,224,865 149,115 147,161 668,573 1,812 603	(367,816) (1,823) 1,224,865 70,472 30,021 273,914 1,812 603	Subsidiary (Note 5) `〞` `〞` `〞` Investee under the equity method Subsidiary (Note 5) `〞` `〞`

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

Name of investor	Name of investee	Location	Main businesses and products	Original investment amount	Original investment amount	Balance as of June 30, 2025	Balance as of June 30, 2025	Balance as of June 30, 2025	Net income (losses) of investee	Share of profits/losses of investee	Note (Note 6)
				June 30, 2025	December 31, 2024	Shares	Percentage of ownership	Carrying value
Feng Tay Enterprises Co., Ltd. Growth-Link Overseas Company Limited `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` VX Holdings Limited Shoe Majesty Co., Ltd. `〞` Dona Orient Holdings Limited `〞` `〞` `〞`	India Tindivandam Footwear Private Limited VX Mold Company Limited VX Holdings Limited Dona Pacific Holdings Limited Shoe Majesty Co., Ltd. Dona Orient Holdings Limited Lotus Footwear Enterprises Private Limited PT Rich Valley Indonesia PT Feng Tay Indonesia Enterprises Cheyyar SEZ Developers Private Ltd. Dona Victor Footwear Co., Ltd. Hong Kong Shoe Majesty Trading Company Limited Vietnam Shoe Majesty Co., Ltd. Vietnam Dona Orient Co., Ltd. Vietnam Dona Standard Footwear Co., Ltd. Vung Tau Orient Co., Ltd. Vietnam Nam Ha Footwear Company Limited	India British Virgin Islands `〞` `〞` `〞` `〞` Singapore (Note 8) Indonesia `〞` India Vietnam Hong Kong Vietnam Vietnam `〞` `〞` `〞`	Manufacturing of athletic shoes, semi- finished footwear and footwear accessories Investment holding Investment holding Investment holding Investment holding Investment holding Investment holding business, and manufacturing and selling of finished shoes Manufacturing of athletic shoes, casual shoes, semi-finished footwear and footwear accessories Manufacturing of athletic shoes, casual shoes, semi-finished footwear and footwear accessories Development in India’s Industrial Park Manufacturing of athletic shoes, semi- finished footwear, and footwear accessories International trade services Manufacturing footwear products 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	1,957,492 14,648 278,103 364,870 235,325 1,926,043 1,990,170 21 20 - 964,788 5,850 1,082,250 1,287,000 2,214,225 1,059,529 1,813,500	1,748,180 14,648 278,103 364,870 235,325 1,926,043 1,990,170 21 20 - 964,788 5,850 1,082,250 1,287,000 2,214,225 1,059,529 1,813,500	517,603,480 372,000 36,342 23,000 8,580 64,483 34,020 10 1 1 Note 4 200 Note 4 Note 4 `〞` `〞` `〞`	96.28% 93.00% 44.87% 92.00% 28.60% 59.03% 88.00% 0.01% 0.01% 0.01% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%	1,294,871 194,064 667,936 1,340,138 740,741 5,374,691 4,147,193 20 13 - 1,487,106 169,600 2,356,995 2,169,134 4,680,483 994,867 1,258,221	(99,586) 100,770 149,115 178,504 147,161 668,573 279,073 (1,823) (367,823) 31,908 149,625 29,495 124,427 350,716 364,119 49,720 (95,476)	(95,849) 93,716 66,903 164,223 42,088 394,659 245,585 - (7) - 149,625 29,495 124,427 350,716 364,119 49,720 (95,476)	Subsidiary (Note 5) Subsidiary (Note 5) Investee under the equity method (Note 5) Subsidiary (Note 5) Investee under the equity method Subsidiary (Note 5) `〞` Investee under the equity method (Note 5) `〞` `〞` Subsidiary (Note 5) Subsidiary `〞` Subsidiary (Note 5) `〞` `〞` `〞`

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

Name of investor	Name of investee	Location	Main businesses and products	Original investment amount	Original investment amount	Balance as of June 30, 2025	Balance as of June 30, 2025	Balance as of June 30, 2025	Net income (losses) of investee	Share of profits/losses of investee	Note (Note 6)
				June 30, 2025	December 31, 2024	Shares	Percentage of ownership	Carrying value
VX Mold Company Limited Dona Pacific Holdings Limited Lotus Footwear Enterprises Private Limited `〞` `〞`	Dona Victor Molds Mfg. Co., Ltd. Dona Pacific (Vietnam) Co., Ltd. Cheyyar SEZ Developers Private Limited East Wind Footwear Company Limited Fairway Enterprises CompanyLimited	Vietnam Vietnam India British Virgin Islands `〞`	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	90,675 585,000 3,506,887 478,847 1,339,454	90,675 585,000 3,506,887 478,847 1,339,454	`註`4 `註`4 117,999,999 9,751 29,501	100.00% 100.00% 99.99% 100.00% 100.00%	206,538 1,455,946 2,760,386 952,520 1,689,545	101,174 178,906 31,908 119,983 95,992	101,174 178,906 31,908 119,983 95,992	Subsidiary (Note 5) Subsidiary (Note 5) Subsidiary (Note 5) `〞` `〞`

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

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

Note 3: The investees of Feng Tay Enterprises Co., Ltd. are presented based on the financial statements as of June 30, 2025, reviewed by certified public accountants, except that some of the investees were presented based on the unreviewed financial statements as of June 30, 2025.

Note 4: Unissued shares of the Vietnamese entities.

Note 5: Included in the consolidated financial statements.

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

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

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

(c) Information on investment in mainland China

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

							(In Thousands of New Taiwan Dollar)	(In Thousands of New Taiwan Dollar)	(In Thousands of New Taiwan Dollar)	(In Thousands of New Taiwan Dollar)	(In Thousands of New Taiwan Dollar)	(In Thousands of New Taiwan Dollar)
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 June 30, 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	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.	131,625 87,750 438,750 438,750 789,750	Note 1 `〞` `〞` `〞` `〞`	160,277 140,496 165,913 265,466 819,331	- - - - -	- - - - -	160,277 140,496 165,913 265,466 819,331	5,136 42,075 118,871 33,383 222,023	50.00% 50.34% 77.50% 68.00% 70.00%	2,568 21,179 92,125 22,700 155,416	29,291 133,160 699,655 404,842 1,650,370	106,846 1,376,205 1,153,514 1,115,411 6,983,536

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

Name of investee	Main businesses and products	Total amount of capital surplus (Note 7)	Method of investment	Accumulated outflow of investment from Taiwan as of January 1, 2025 (Note 7)	Investm	ent flows	Accumulated outflow of investment from Taiwan as of June 30, 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 Great Hope Footwear Company Limited Fujian Lifeng Footwear Industrial Development Company Limited Suzhou Yufeng Plastics Technology Co., Ltd.	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.	232,538 438,750 74,960	Note 1 Note 2 `〞`	391,497 - -	- - -	- - -	391,497 - -	59,647 32,952 34,930	84.73% 70.00% 66.07%	50,542 23,066 23,077	372,949 450,626 153,461	775,113 - -

ii. Upper limit on investment in Mainland China

Accumulated Investment in Mainland China as of June 30, 2025 (Note 4 and 7)	Investment Amounts Authorized by Investment Commission, MOEA (Note 5 and 7)	Upper Limit on Investment (Note 6)
1,942,980	2,648,662	13,582,512

Note 1: Indirect investment in the Company located in Mainland China through an existing company registered in the third region. Note 2: Investment in companies in Mainland China through the existing companies registered in Mainland China. Note 3: Recognized profit and loss from investment for the current period:

(1) The financial statements were reviewed by the parent company’s certified public accountants.

(2) Based on unreviewed financial statements for the six months ended June 30, 2025.

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 364,251,035.

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 29.250 on June 30, 2025. Note 8: Calculated based on the average closing exchange rate of 31.6008 between January and the end of June 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

(a) General Information

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

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

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

For the three months ended June 30, 2025	Department of manufacturing and selling shoes $ 19,302,900 22,752,648 $ 42,055,548 $ 2,580,072	Other Departments 1,096,818 1,253,659 2,350,477 85,124	Reconciliation and elimination - (24,006,307) (24,006,307) (1,063,079)	Total
				20,399,718 -
Revenue Revenue from external customers Intersegment revenues Total revenue Reportable segment profit or loss
				20,399,718
				1,602,117

For the three months ended June 30, 2024	Department of manufacturing and selling shoes $ 21,135,933 25,762,612 $ 46,898,545 $ 2,379,529 Department of manufacturing and selling shoes $ 38,932,600 46,376,032 $ 85,308,632 $ 4,245,881	Other Departments 1,130,763 663,383 1,794,146 33,239 Other Departments 2,189,941 2,444,169 4,634,110 98,642	Reconciliation and elimination - (26,425,995) (26,425,995) 6,646 Reconciliation and elimination - (48,820,201) (48,820,201) (1,088,739)	Total
				22,266,696 -
Revenue Revenue from external customers Intersegment revenues Total revenue Reportable segment profit or loss For the six months ended June 30, 2025
				22,266,696
				2,419,414
				Total
				41,122,541 -
Revenue Revenue from external customers Intersegment revenues Total revenue Reportable segment profit or loss
				41,122,541
				3,255,784

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

For the six months ended June 30, 2024	Department of manufacturing and selling shoes $ 40,809,589 48,237,585 $ 89,047,174 $ 4,233,299	Other Departments 2,073,558 1,895,860 3,969,418 (6,011)	Reconciliation and elimination - (50,133,445) (50,133,445) 17,455	Total
				42,883,147 -
Revenue Revenue from external customers Intersegment revenues Total revenue Reportable segment profit or loss
				42,883,147
				4,244,743

AI assistant

FT — Interim / Quarterly Report 2025

52779_rns_2026-05-04_31daf41f-478d-44d4-a3fd-b8f397f7a90c.pdf

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES

Consolidated Financial Statements

Table of contents

KPMG

Independent Auditors’ Review Report

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

KPMG

Notes to Readers

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

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES

Consolidated Balance Sheets

June 30, 2025, December 31, 2024, and June 30, 2024

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

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the three months and six months ended June 30, 2025 and 2024

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

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

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES

Consolidated Statements of Changes in Equity

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

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES

Consolidated Statements of Cash Flows

For the six months ended June 30, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

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

June 30, 2025 and 2024

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

(1) Company history

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

(3) New standards, amendments and interpretations adopted:

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

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

(4) Summary of material accounting policies:

(a) Statement of compliance

(b) Basis of consolidation

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

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

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

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

(c) Employee benefits

(d) Income taxes

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

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

(6) Explanation of significant accounts:

(b) Accounts receivable

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

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

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

(d) Investments accounted for using equity method

(i) Joint ventures

(ii) Collateral

(e) Material non-controlling interest of subsidiaries

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

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

(f) Property, plant and equipment

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

(g) Right-of-use assets

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

(h) Investment property

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

(i)

Intangible assets

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

(j) Short-term borrowings

(k) Long-term borrowings

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

(l) Lease liabilities

(i) Real estate leases

(ii) Other leases

(m) Employee benefits

(i) Defined benefit plans

(ii) Defined contribution plans

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

FT Interim / Quarterly Report 2025