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FT Interim / Quarterly Report 2025

May 4, 2026

52779_rns_2026-05-04_e0f10077-4f2a-4987-854c-02877d59910b.pdf

Interim / Quarterly Report

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1

Stock Code: 9910

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES

Consolidated Financial Statements

With Independent Auditors’ Review Report For the Nine Months Ended September 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.

2

Table of contents

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
1
2
3
4
5
6
7
8
8
8～10
10～14
14
15～42
43～44
44
44
44
44
45
46～53
54～55
56～57
57～58

3

==> picture [76 x 32] intentionally omitted <==

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

KPMG

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

Independent Auditors’ 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 September 30, 2025 and 2024, and the related consolidated statements of comprehensive income for the three months and nine months ended September 30, 2025 and 2024, as well as the changes in equity and cash flows for the nine months ended September 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 $15,851,929 thousand and $15,300,787 thousand, constituting 30.86% and 29.45% of consolidated total assets as of September 30, 2025 and 2024, respectively; total liabilities amounting to $4,677,586 thousand and $4,097,785 thousand, constituting 17.94% and 15.65% of consolidated total liabilities as of September 30, 2025 and 2024, respectively, and total comprehensive (loss) income amounting to $(475,975) thousand, $(452,246) thousand, $(1,269,681) thousand and $141,829 thousand, constituting (17.59)%, (49.20)%, (71.36)% and 2.65% of consolidated total comprehensive income for the three months and nine months ended September 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 $1,376,637 thousand and $1,233,031 thousand as of September 30, 2025 and 2024, respectively, and its equity in net earnings on these investee companies of $84,353 thousand, $65,945 thousand, $156,462 thousand and $122,144 thousand for the three months and nine months ended September 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 September 30, 2025 and 2024, and of its consolidated financial performance for the three months and nine months ended September 30, 2025 and 2024, as well as its consolidated cash flows for the nine months ended September 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 Chen, Ying-Ju.

KPMG

Taipei, Taiwan (Republic of China) November 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.

4

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

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES

Consolidated Balance Sheets

September 30, 2025, December 31, 2024, and September 30, 2024

(Expressed in Thousands of New Taiwan Dollars)

Assets
Current assets:
1100
Cash and cash equivalents (Note (6)(a))
1170
Accounts receivable (Notes (6)(b) and (q))
1200
Other receivables (Note (7))
1220
Current tax assets
130X
Inventories (Note (6)(c))
1476
Other current financial assets (Note (8))
1479
Other current assets, others
Total current assets
Non-current assets:
1550
Investments accounted for using equity method (Note (6)(d))
1600
Property, plant and equipment (Note (6)(f))
1755
Right-of-use assets (Note (6)(g))
1760
Investment property, net (Note (6)(h))
1780
Intangible assets (Note (6)(i))
1840
Deferred tax assets
1980
Other non-current financial assets (Note (8))
1990
Other non-current assets, others (Note (7))
Total non-current assets
Total assets		 September 30, 2025
Amount
%
$ 4,753,552
9
8,239,722
16
884,405
2
342,771
1
8,391,491
16
393
-
985,409
2
23,597,743
46
1,376,637
3
21,714,386
42
1,600,700
3
6,858
-
458,016
1
1,921,011
4
88,140
-
601,846
1
27,767,594
54
$
51,365,337
100		 December 31, 2024
Amount
%
5,140,543
9
8,118,995
15
915,173
2
514,210
1
9,237,855
17
956
-
957,965
2
24,885,697
46
1,316,221
2
23,215,335
43
1,768,461
3
56,728
-
459,452
1
1,814,594
3
103,172
-
773,122
2
29,507,085
54
54,392,782
100		 September 30, 2024
Amount
%
3,309,020
6
8,623,307
17
915,084
2
217,613
-
9,072,874
18
1,398
-
1,031,672
2
23,170,968
45
1,233,031
2
22,623,256
44
1,667,511
3
56,243
-
454,109
1
1,940,656
4
101,668
-
707,794
1
28,784,268
55
51,955,236
100
Liabilities and Equity
Current liabilities:
2100
Short-term borrowings (Note (6)(j))
2130
Current contract liabilities (Note (6)(q))
2170
Notes and accounts payable
2200
Other payables
2230
Current tax liabilities
2280
Current lease liabilities (Note (6)(l))
2320
Long-term liabilities, current portion (Note (6)(k))
2399
Other current liabilities, others
Total current liabilities
Non-Current liabilities:
2540
Long-term borrowings (Note (6)(k))
2570
Deferred tax liabilities
2580
Non-current lease liabilities (Note (6)(l))
2640
Non-current net defined benefit liability
2670
Other non-current liabilities, others
Total non-current liabilities
Total liabilities
Equity attributable to owners of parent (Note (6)(o)):
3110
Total capital stock
3200
Capital surplus
Retained earnings:
3310
Legal reserve
3320
Special reserve
3350
Unappropriated retained earnings
Other equity interest:
3410
Exchange differences on translation of foreign financial
statements
Total equity attributable to owners of parent:
36XX
Non-controlling interests
Total equity
Total liabilities and equity		 September 30, 2025 December 31, 2024 December 31, 2024 September 30, 2024
Amount
%
5,485,828
11
1,612
-
4,081,608
8
4,917,791
9
822,281
2
17,661
-
-
-
46,240
-
15,373,021
30
1,914,935
4
3,487,933
7
503,500
1
4,668,147
9
238,832
-
10,813,347
21
26,186,368
51
9,874,828
19
47,854
-
6,979,145
13
1,127,303
2
6,289,323
12
(408,358)
(1)
23,910,095
45
1,858,773
4
25,768,868
49
51,955,236
100
Amount
2,983,008
1,141
4,131,129
5,630,757
944,396
39,408
-
43,842		 %
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.

5

(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 nine months ended September 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 (Notes (4) and (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 income (loss)
8500
Total comprehensive income
Net profit, attributable to:
8610
Net profit, attributable to owners of parent
8620
Net profit, attributable to non-controlling interests
Comprehensive income attributable to:
8710
Comprehensive income, attributable to owners of parent
8720
Comprehensive income, attributable to non-controlling
interests
Earnings per common share expressed in dollars
(Note (6)(p))
9750
Basic earnings per share		 For the three months ended September 30
2025
2024
Amount
%
Amount
%
$ 21,679,985
100
22,719,052
100
(16,538,023)
(76)
(17,339,358)
(76)
5,141,962
24
5,379,694
24
(2,200,997)
(10)
(2,414,199)
(11)
(803,904)
(4)
(720,672)
(3)
(3,004,901)
(14)
(3,134,871)
(14)
2,137,061
10
2,244,823
10
9,031
-
23,277
-
96,980
-
85,796
-
447,514
2
(340,113)
(1)
(65,277)
-
(77,864)
-
84,353
-
65,945
-
572,601
2
(242,959)
(1)
2,709,662
12
2,001,864
9
(798,116)
(3)
(471,676)
(2)
1,911,546
9
1,530,188
7
797,737
3
(613,574)
(3)
(3,953)
-
2,530
-
793,784
3
(611,044)
(3)
793,784
3
(611,044)
(3)
$
2,705,330
12
919,144
4
$ 1,739,675
8
1,426,632
7
171,871
1
103,556
-
$
1,911,546
9
1,530,188
7
$ 2,485,417
11
846,091
4
219,913
1
73,053
-
$
2,705,330
12
919,144
4
$
1.76
1.45		 For the three months ended September 30
2025
2024
Amount
%
Amount
%
$ 21,679,985
100
22,719,052
100
(16,538,023)
(76)
(17,339,358)
(76)
5,141,962
24
5,379,694
24
(2,200,997)
(10)
(2,414,199)
(11)
(803,904)
(4)
(720,672)
(3)
(3,004,901)
(14)
(3,134,871)
(14)
2,137,061
10
2,244,823
10
9,031
-
23,277
-
96,980
-
85,796
-
447,514
2
(340,113)
(1)
(65,277)
-
(77,864)
-
84,353
-
65,945
-
572,601
2
(242,959)
(1)
2,709,662
12
2,001,864
9
(798,116)
(3)
(471,676)
(2)
1,911,546
9
1,530,188
7
797,737
3
(613,574)
(3)
(3,953)
-
2,530
-
793,784
3
(611,044)
(3)
793,784
3
(611,044)
(3)
$
2,705,330
12
919,144
4
$ 1,739,675
8
1,426,632
7
171,871
1
103,556
-
$
1,911,546
9
1,530,188
7
$ 2,485,417
11
846,091
4
219,913
1
73,053
-
$
2,705,330
12
919,144
4
$
1.76
1.45		 For the three months ended September 30
2025
2024
Amount
%
Amount
%
$ 21,679,985
100
22,719,052
100
(16,538,023)
(76)
(17,339,358)
(76)
5,141,962
24
5,379,694
24
(2,200,997)
(10)
(2,414,199)
(11)
(803,904)
(4)
(720,672)
(3)
(3,004,901)
(14)
(3,134,871)
(14)
2,137,061
10
2,244,823
10
9,031
-
23,277
-
96,980
-
85,796
-
447,514
2
(340,113)
(1)
(65,277)
-
(77,864)
-
84,353
-
65,945
-
572,601
2
(242,959)
(1)
2,709,662
12
2,001,864
9
(798,116)
(3)
(471,676)
(2)
1,911,546
9
1,530,188
7
797,737
3
(613,574)
(3)
(3,953)
-
2,530
-
793,784
3
(611,044)
(3)
793,784
3
(611,044)
(3)
$
2,705,330
12
919,144
4
$ 1,739,675
8
1,426,632
7
171,871
1
103,556
-
$
1,911,546
9
1,530,188
7
$ 2,485,417
11
846,091
4
219,913
1
73,053
-
$
2,705,330
12
919,144
4
$
1.76
1.45		 For the nine months ended September 30
2025
2024
Amount
%
Amount
%
62,802,526
100
65,602,199
100
(48,354,685)
(77)
(50,807,138)
(77)
14,447,841
23
14,795,061
23
(6,394,075)
(10)
(7,048,307)
(11)
(2,191,835)
(4)
(2,155,610)
(3)
(8,585,910)
(14)
(9,203,917)
(14)
5,861,931
9
5,591,144
9
35,911
-
56,074
-
297,808
-
366,914
1
(199,161)
-
323,960
-
(187,505)
-
(213,629)
-
156,462
-
122,144
-
103,515
-
655,463
1
5,965,446
9
6,246,607
10
(2,029,320)
(3)
(1,682,749)
(3)
3,936,126
6
4,563,858
7
(2,164,967)
(3)
791,375
1
8,127
-
(2,624)
-
(2,156,840)
(3)
788,751
1
(2,156,840)
(3)
788,751
1
1,779,286
3
5,352,609
8
3,608,069
6
4,282,974
7
328,057
-
280,884
-
3,936,126
6
4,563,858
7
1,592,448
3
5,001,919
7
186,838
-
350,690
1
1,779,286
3
5,352,609
8
3.65
4.34		 For the nine months ended September 30
2025
2024
Amount
%
Amount
%
62,802,526
100
65,602,199
100
(48,354,685)
(77)
(50,807,138)
(77)
14,447,841
23
14,795,061
23
(6,394,075)
(10)
(7,048,307)
(11)
(2,191,835)
(4)
(2,155,610)
(3)
(8,585,910)
(14)
(9,203,917)
(14)
5,861,931
9
5,591,144
9
35,911
-
56,074
-
297,808
-
366,914
1
(199,161)
-
323,960
-
(187,505)
-
(213,629)
-
156,462
-
122,144
-
103,515
-
655,463
1
5,965,446
9
6,246,607
10
(2,029,320)
(3)
(1,682,749)
(3)
3,936,126
6
4,563,858
7
(2,164,967)
(3)
791,375
1
8,127
-
(2,624)
-
(2,156,840)
(3)
788,751
1
(2,156,840)
(3)
788,751
1
1,779,286
3
5,352,609
8
3,608,069
6
4,282,974
7
328,057
-
280,884
-
3,936,126
6
4,563,858
7
1,592,448
3
5,001,919
7
186,838
-
350,690
1
1,779,286
3
5,352,609
8
3.65
4.34		 For the nine months ended September 30
2025
2024
Amount
%
Amount
%
62,802,526
100
65,602,199
100
(48,354,685)
(77)
(50,807,138)
(77)
14,447,841
23
14,795,061
23
(6,394,075)
(10)
(7,048,307)
(11)
(2,191,835)
(4)
(2,155,610)
(3)
(8,585,910)
(14)
(9,203,917)
(14)
5,861,931
9
5,591,144
9
35,911
-
56,074
-
297,808
-
366,914
1
(199,161)
-
323,960
-
(187,505)
-
(213,629)
-
156,462
-
122,144
-
103,515
-
655,463
1
5,965,446
9
6,246,607
10
(2,029,320)
(3)
(1,682,749)
(3)
3,936,126
6
4,563,858
7
(2,164,967)
(3)
791,375
1
8,127
-
(2,624)
-
(2,156,840)
(3)
788,751
1
(2,156,840)
(3)
788,751
1
1,779,286
3
5,352,609
8
3,608,069
6
4,282,974
7
328,057
-
280,884
-
3,936,126
6
4,563,858
7
1,592,448
3
5,001,919
7
186,838
-
350,690
1
1,779,286
3
5,352,609
8
3.65
4.34
2025 %
100
(76)
24
(10)
(4)
(14)
10
-
-
2
-
-
2
12
(3)
9
3
-
3
3
12
8
1
9
11
1
12
1.76		 2024 2025 %
100
(77)
23
(10)
(4)
(14)
9
-
-
-
-
-
-
9
(3)
6
(3)
-
(3)
(3)
3
6
-
6
3
-
3
3.65		 2024
Amount
65,602,199
(50,807,138)
14,795,061
(7,048,307)
(2,155,610)
(9,203,917)
5,591,144
56,074
366,914
323,960
(213,629)
122,144
655,463
6,246,607
(1,682,749)
4,563,858
791,375
(2,624)
788,751
788,751
5,352,609
4,282,974
280,884
4,563,858
5,001,919
350,690
5,352,609
Amount
$ 21,679,985
(16,538,023)
5,141,962
(2,200,997)
(803,904)
(3,004,901)
2,137,061
9,031
96,980
447,514
(65,277)
84,353
572,601
2,709,662
(798,116)
1,911,546
797,737
(3,953)
793,784
793,784
$
2,705,330
$ 1,739,675
171,871
$
1,911,546
$ 2,485,417
219,913
$
2,705,330
$		 Amount
22,719,052
(17,339,358)
5,379,694
(2,414,199)
(720,672)
(3,134,871)
2,244,823
23,277
85,796
(340,113)
(77,864)
65,945
(242,959)
2,001,864
(471,676)
1,530,188
(613,574)
2,530
(611,044)
(611,044)
919,144
1,426,632
103,556
1,530,188
846,091
73,053
919,144		 Amount
62,802,526
(48,354,685)
14,447,841
(6,394,075)
(2,191,835)
(8,585,910)
5,861,931
35,911
297,808
(199,161)
(187,505)
156,462
103,515
5,965,446
(2,029,320)
3,936,126
(2,164,967)
8,127
(2,156,840)
(2,156,840)
1,779,286
3,608,069
328,057
3,936,126
1,592,448
186,838
1,779,286

See accompanying notes to consolidated financial statements.

6

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

FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES

Consolidated Statements of Changes in Equity

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

Balance at January 1, 2024
Net profit
Other comprehensive income
Total comprehensive income
Appropriation and distribution of retained earnings:
Legal reserve appropriated
Special reserve appropriated
Cash dividends of ordinary share
Changes in ownership interests in subsidiaries
Changes in non-controlling interests
Balance at September 30, 2024
Balance at 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 at September 30, 2025		 Equity attributable to owners of Equity attributable to owners of parent Total equity
attributable to
owners of parent
23,160,248
4,282,974
718,945
5,001,919
-
-
(4,246,176)
(5,896)
-
23,910,095
26,840,051
3,608,069
(2,015,621)
1,592,448
-
-
(5,036,162)
(111)
(2,605)
-
23,393,621		 Non-controlling
interests
1,894,583
280,884
69,806
350,690
-
-
-
9,042
(395,542)
1,858,773
1,988,831
328,057
(141,219)
186,838
-
-
-
-
2,605
(274,749)
1,903,525		 Total equity
25,054,831
4,563,858
788,751
5,352,609
-
-
(4,246,176)
3,146
(395,542)
25,768,868
28,828,882
3,936,126
(2,156,840)
1,779,286
-
-
(5,036,162)
(111)
-
(274,749)
25,297,146
Share capital
Ordinary
shares
$ 9,874,828
-
-
-
-
-
-
-
-
$
9,874,828
$ 9,874,828
-
-
-
-
-
-
-
-
-
$
9,874,828		 Capital surplus
53,750
-
-
-
-
-
-
(5,896)
-
47,854
49,085
-
-
-
-
-
-
(111)
(2,605)
-
46,369		 Retained earnings Unappropriated
retained earnings
6,829,001
4,282,974
-
4,282,974
(502,702)
(73,774)
(4,246,176)
-
-
6,289,323
8,449,684
3,608,069
-
3,608,069
(644,333)
1,127,303
(5,036,162)
-
-
-
7,504,561		 Total other equity
interest
Exchange
differences on
translation of
foreign financial
statements
(1,127,303)
-
718,945
718,945
-
-
-
-
-
(408,358)
360,006
-
(2,015,621)
(2,015,621)
-
-
-
-
-
-
(1,655,615)
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.

7

(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 nine months ended September 30, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

Cash flows from operating activities:
Profit before tax
Adjustments:
Adjustments to reconcile profit:
Depreciation expense
Amortization expense
Interest expense
Interest income
Share of profit of associates and joint ventures accounted for using equity method
Loss on disposal of property, plant and equipment
Loss from lease modification
Gains on disposal of investment properties
Others
Total adjustments to reconcile profit
Changes in operating assets and liabilities:
Changes in operating assets:
Accounts receivable
Other receivables
Inventories
Other current assets, others
Other current financial assets
Total changes in operating assets
Changes in operating liabilities:
Current contract liabilities
Notes and accounts payable
Other payable
Other current liabilities, others
Net defined benefit liability
Other non-current liabilities, others
Total changes in operating liabilities
Total changes in operating assets and liabilities
Total adjustments
Cash inflow generated from operations
Interest received
Interest paid
Income taxes paid
Net cash flows from operating activities
Cash flows used in investing activities:
Acquisition of property, plant and equipment
Proceeds from disposal of property, plant and equipment
Acquisition of intangible assets
Proceeds from disposal of intangible assets
Proceeds from disposal of investment properties
Other non-current financial assets
Other non-current assets, others
Net cash flows used in investing activities
Cash flows used in financing activities:
Increase in short-term loans
Proceeds from long-term borrowings
Repayments of long-term borrowings
Payments of lease liabilities
Cash dividends paid
Change in non-controlling interests
Net cash flows used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period		 For the nine months ended September 30
2025
2024
$ 5,965,446
6,246,607
2,242,084
2,310,771
61,982
55,723
187,505
213,629
(35,911)
(56,074)
(156,462)
(122,144)
10,997
19,729
-
920
(301,657)
(24,827)
(3,811)
22,476
2,004,727
2,420,203
(162,180)
(460,211)
(36,680)
(119,574)
189,619
(222,400)
(86,617)
(58,786)
517
20
(95,341)
(860,951)
34
590
(72,506)
(258,020)
(330,807)
(501,570)
(10,070)
5,637
168,299
341,855
(4,349)
11,855
(249,399)
(399,653)
(344,740)
(1,260,604)
1,659,987
1,159,599
7,625,433
7,406,206
37,631
56,513
(186,700)
(216,519)
(664,436)
(2,650,094)
6,811,928
4,596,106
(2,332,544)
(2,241,001)
183,111
91,320
(68,444)
(84,620)
578
-
349,668
42,700
6,109
3,827
(3,958)
14,268
(1,865,480)
(2,173,506)
2,301,060
3,222,086
506,205
125,224
(2,218,033)
(1,789,676)
(33,324)
(39,418)
(5,036,162)
(4,246,176)
(265,948)
(390,852)
(4,746,202)
(3,118,812)
(587,237)
146,390
(386,991)
(549,822)
5,140,543
3,858,842
$
4,753,552
3,309,020
2025
$ 5,965,446
2,242,084
61,982
187,505
(35,911)
(156,462)
10,997
-
(301,657)
(3,811)
2,004,727
(162,180)
(36,680)
189,619
(86,617)
517
(95,341)
34
(72,506)
(330,807)
(10,070)
168,299
(4,349)
(249,399)
(344,740)
1,659,987
7,625,433
37,631
(186,700)
(664,436)
6,811,928
(2,332,544)
183,111
(68,444)
578
349,668
6,109
(3,958)
(1,865,480)
2,301,060
506,205
(2,218,033)
(33,324)
(5,036,162)
(265,948)
(4,746,202)
(587,237)
(386,991)
5,140,543
$
4,753,552

See accompanying notes to consolidated financial statements.

8

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

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

  • ●Annual Improvements to IFRS Accounting Standards—Volume 11

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

(Continued)

9

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

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

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

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

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

Effective date per IASB

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

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

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

The 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.

(Continued)

10

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

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

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

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

(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 September
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).
%
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)
September
30, 2025
%
100.00
%
100.00
%
92.13		 December
31, 2024
%
100.00
%
100.00
%
92.13
The Company、
GLO
The Company
The Company、
GLO		 PT Feng Tay Indonesia
Enterprises
Growth-Link Overseas Company
Limited(GLO)
VX Holdings Limited (VXH)		 Manufactures athletic
shoes, casual shoes, semi-
finished footwear and
footwear accessories.
Investment holding.
Investment holding.

(Continued)

11

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

Name of
investor		 Name of subsidiary Principal
activity		 Shareholding Shareholding September
30, 2024
Description
%
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)
%
95.85
India Tindivanam
Footwear Private
Limited was
established in India in
2022, and has paid in
capital of
INR5,687,949,690.
(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)
%
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.
September
30, 2025
%
100.00
%
100.00
%
100.00
%
100.00
%
96.49
%
70.00
%
100.00
%
100.00		 December
31, 2024
%
100.00
%
100.00
%
100.00
%
100.00
%
95.85
%
70.00
%
100.00
%
100.00
The Company、
GLO
The Company、
GLO
The Company
The Company
The Company
GLO
DF
GLO and DF		 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)
Fujian Lifeng Footwear Industrial
Development Company
Limited(LF)
Fujian Xiefeng Footwear
Company Limited		 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.
Manufactures athletic
shoes, semi-finished
footwear, and footwear
accessories.
Manufactures athletic
shoes, semi-finished
footwear, and footwear
accessories.

(Continued)

12

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

Name of
investor		 Name of subsidiary Principal
activity		 Shareholding Shareholding September
30, 2024
Description
%
80.00
Fujian San Feng
Footwear Company
Limited was
established in Fujian
Province, China in
1992, and has paid in
capital of
USD15,000,000.
%
50.34
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
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)
%
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)
%
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.
September
30, 2025
%
80.00
%
50.34
%
100.00
%
100.00
%
50.00
%
92.00
%
93.00
%
88.00		 December
31, 2024
%
80.00
%
50.34
%
100.00
%
100.00
%
50.00
%
92.00
%
93.00
%
88.00
GLO and DF
GLO
GLO, DF, LF
and XM
LF, GH and XM
GLO
GLO
GLO
GLO		 Fujian San Feng Footwear
Company Limited
Fujian Putian Xie Feng Mold
Company Limited(XM)
Fujian Great Hope Footwear
Company Limited(GH)
Suzhou Yufeng Plastics
Technology Co., Ltd.
Fujian Wu Feng Department Store
Co., Ltd.
Dona Pacific Holdings Limited
(DPH)
VX Mold Company
Limited(VXM)
Lotus Footwear Enterprises
Private Limited (LUH)		 Manufactures athletic
shoes, semi-finished
footwear, and footwear
accessories.
Manufactures and repairs
molds, cutting dies, shoe
lasts, injections, and
processing of metal parts.
Manufactures athletic
shoes, casual shoes, semi-
finished footwear,
footwear accessories,
protective gear, and other
supporting products.
Manufacturing and
processing of plastic
products.
Wholesaler and retailer of
general merchandise, and
related services.
Investment holding.
Investment holding.
Investment holding
business, and
manufacturing and selling
of finished shoes.

(Continued)

13

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

Name of
investor		 Name of subsidiary Principal
activity		 Shareholding Shareholding September
30, 2024
Description
%
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)
%
100.00
Cheyyar SEZ
Developers Private
Limited was
established in Indian
in 2006, and has paid
in capital of
USD119,893,561.
(Note 1)
%
100.00
East Wind Footwear
Company Limited was
established in British
Virgin Islands in 2010,
and has paid in capital
of USD15,695,471
(including share
premium of
USD15,685,720).
(Note 2)
September
30, 2025
%
100.00
%
100.00
%
100.00
%
100.00
%
100.00
%
100.00
%
100.00
%
100.00
%
100.00		 December
31, 2024
%
100.00
%
100.00
%
100.00
%
100.00
%
100.00
%
100.00
%
100.00
%
100.00
%
100.00
VXH
DOH
DOH
DOH
DOH
DPH
VXM
GLO and LUH
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.
Cheyyar SEZ Developers Private
Limited
East Wind Footwear Company
Limited		 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.
Development in India’s
Industrial Park.
Investment holding and
production of athletic
shoes.

(Continued)

14

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

Name of
investor		 Name of subsidiary Principal
activity		 Shareholding Shareholding September
30, 2024
Description
%
100.00
Fairway Enterprises
Company Limited was
established in British
Virgin Islands in 2014,
and has paid in capital
of USD43,324,582
(including share
premium of
USD43,295,081).
(Note 2)
September
30, 2025
%
100.00		 December
31, 2024
%
100.00
LUH Fairway Enterprises Company
Limited		 Investment holding and
production of athletic
shoes.
  • 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 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.

(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.

(Continued)

15

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

(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		 September 30,
2025
$ 913
1,272,115
3,480,524
$
4,753,552		 December 31,
2024
1,125
2,221,183
2,918,235
5,140,543		 September 30,
2024
1,005
1,152,029
2,155,986
3,309,020

Please refer to Note (6)(t) for the 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		 September 30,
2025
$ 8,239,722
-
$
8,239,722		 December 31,
2024
8,118,995
-
8,118,995		 September 30,
2024
8,623,307
-
8,623,307

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

Current
1 to 10 days past due
11 to 60 days past due
61 days to 1 year past due		 September 30, 2025 September 30, 2025
Gross carrying
amount
$ 7,790,948
442,457
5,528
789
$
8,239,722		 Weighted-
average loss
rate
0.00%
0.00%
0.00%
0.00%		 Allowance for
credit loss
provision
-
-
-
-
-

(Continued)

16

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

Current
1 to 10 days past due
11 to 60 days past due
61 days to 1 year past due
Current
1 to 10 days past due
11 to 60 days past due
61 days to 1 year past due		 December 31, 2024 December 31, 2024
Gross carrying
amount
Weighted-
average loss
rate
$ 7,424,013
0.00%
669,342
0.00%
7,691
0.00%
17,949
0.00%
$
8,118,995
September 30, 2024		 Allowance for
credit loss
provision
-
-
-
-
-
Weighted-
average loss
rate
0.00%
0.00%
0.00%
0.00%		 Allowance for
credit loss
provision
-
-
-
-
-

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

Balance at January 1
Amounts written off
Balance at September 30		 For the nine months ended
September 30
2025
2024
$ -
7,972
-
(7,972)
$
-
-
2025
$ -
-
$
-

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

  • (c) Inventories
Raw materials
Work in process
Finished goods
Merchandise inventory
Inventory in transit
Others		 September 30,
2025
$ 3,670,734
1,278,711
2,226,552
142,701
1,072,196
597
$
8,391,491		 December 31,
2024
3,638,768
1,322,945
3,044,874
89,807
1,140,984
477
9,237,855		 September 30,
2024
3,864,300
1,237,235
2,663,946
164,091
1,141,136
2,166
9,072,874

(Continued)

17

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

The details of operating cost were as follows:

Cost of goods sold
Unallocated production
overheads
Net (gains) losses on
inventories
Inventory scrap loss
Revenue from sale of scraps
Losses (reversal gains) on
obsolescence and inventory
valuation
Total		 For the three months ended
September 30
2025
2024
$ 16,480,461
17,202,590
47,103
130,816
(417)
279
13,984
20,815
(15,525)
(13,582)
12,417
(1,560)
$
16,538,023
17,339,358		 For the nine months ended
September 30
2025
2024
47,853,381
50,303,991
440,952
456,308
(1,250)
(456)
43,410
101,324
(43,881)
(43,669)
62,073
(10,360)
48,354,685
50,807,138
2025
$ 16,480,461
47,103
(417)
13,984
(15,525)
12,417
$
16,538,023		 2025
47,853,381
440,952
(1,250)
43,410
(43,881)
62,073
48,354,685

Write-down of inventory valuation is due to obsolescence or out of use, wherein the amount of the net realizable value of the inventory which is lower than the cost is recognized as operating costs. In addition, when the factors causing the net realizable value of inventory to be lower than the cost is disappeared due to scrapping or disposal, the increase in the net realized value is recognized as a deduction in operating costs.

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

  • (d) Investments accounted for using equity method

  • (i) Joint ventures

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

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

Individually insignificant joint
venture		 September 30,
2025
$
1,376,637		 December 31,
2024
1,316,221		 September 30,
2024
1,233,031

(Continued)

18

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

Attributable to the Group:
Profit from continuing
operation
Other comprehensive
income (loss)
Comprehensive income		 For the three months ended
September 30
2025
2024
$ 84,353
65,945
43,517
(27,858)
$
127,870
38,087		 For the nine months ended
September 30
2025
2024
156,462
122,144
(89,482)
28,880
66,980
151,024		 For the nine months ended
September 30
2025
2024
156,462
122,144
(89,482)
28,880
66,980
151,024
2025
$ 84,353
43,517
$
127,870		 2025
156,462
(89,482)
66,980
151,024
  • (ii) Collateral

As of September 30, 2025, December 31, 2024 and September 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 interests of subsidiaries

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

Subsidiaries Main operation
place
China		 Percentage of
non-controlling interests
September 30,
2025
December 31,
2024
September 30,
2024
%
30.00
%
30.00
%
30.00
September 30,
2025
%
30.00
Fujian Da Feng
Holdings Company
Limited

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

  • (i) Fujian Da Feng Holdings Company Limited’s collective financial information:
Current assets
Non-current assets
Current liabilities
Net assets
Non-controlling interests		 September 30,
2025
$ 175,105
2,488,529
(39,691)
$
2,623,943
$
787,183		 December 31,
2024
332,513
2,385,224
(48,713)
2,669,024
800,707		 September 30,
2024
44,489
2,486,390
(38,730)
2,492,149
747,645

(Continued)

19

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

For the three months ended
September 30
2025
2024
Net income
$ 159,825
123,334
Other comprehensive
income (loss)
102,747
(28,650)
Comprehensive income
$
262,572
94,684
Profit, attributable to non-
controlling interests
$
47,947
37,001
Comprehensive income,
attributable to non-
controlling interests
$
78,772
28,405
Net cash flows (used in)
from operating
activities
$ (38,390)
15,136
Net cash flows from
investing activities
33,754
8,442
Net cash flows from (used
in) financing activities
1,788
(9,087)
Net (decrease) increase in
cash and cash
equivalents
$
(2,848)
14,491
Cash dividends to non-
controlling interests
$
-
-		 For the nine months ended
September 30
2025
2024
381,848
316,845
(170,602)
101,928
211,246
418,773
114,554
95,054
63,374
125,632
(23,431)
18,446
387,186
477,264
(258,661)
(511,886)
105,094
(16,176)
77,598
153,566
2025
381,848
(170,602)
211,246
114,554
63,374
(23,431)
387,186
(258,661)
105,094
77,598

(f) Property, plant and equipment

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

Cost:
Balance at January 1, 2025
Additions
Disposals
Reclassifications
Effect of changes in foreign exchange
rates
Balance at September 30, 2025		 Land
$ 1,655,182
252,961
-
49
(31,786)
$
1,876,406		 Buildings
17,751,741
35,562
(94,431)
217,297
(1,191,828)		 Machinery
and
equipment
26,915,429
320,311
(697,313)
1,405,038
(1,950,924)		 Computer
and
communicatio
nequipment
593,077
20,987
(13,247)
36,873
(33,534)		 Test
equipment
115,367
1,482
(961)
2,466
-		 Transportatio
nequipment
614,205
4,434
(9,648)
26,882
(41,488)		 Office
equipment
824,475
17,664
(11,559)
22,828
(62,159)		 Other
equipment
110,137
1,583
(1,957)
115
(2,027)		 Equipment to
be inspected
and
construction
inprogress
2,793,987
1,992,888
-
(1,711,548)
(196,360)		 Total
51,373,600
2,647,872
(829,116)
-
(3,510,106)
16,718,341 25,992,541 604,156 118,354 594,385 791,249 107,851 2,878,967 49,682,250

(Continued)

20

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

Balance at January 1, 2024

Additions
Disposals
Reclassifications
Effect of changes in foreign exchange
rates
Balance at September 30, 2024

Depreciation and impairment loss:
Balance at January 1, 2025

Depreciation
Reversal of impairment loss
Disposals
Reclassifications
Effect of changes in foreign exchange
rates
Balance at September 30, 2025

Balance at January 1, 2024

Depreciation
Impairment loss
Disposals
Reclassifications
Effect of changes in foreign exchange
rates
Balance at September 30, 2024

Carrying amounts:
Balance at January 1, 2025

Balance at September 30, 2025

Balance at January 1, 2024

Balance at September 30, 2024
 Land
$ 1,626,928
-
-
-
12,836		 Buildings
16,367,909
23,891
(9,445)
443,998
427,837		 Machinery
and
equipment
23,143,581
484,609
(471,291)
1,936,019
730,360		 Computer
and
communicatio
nequipment
524,743
30,312
(26,231)
26,441
12,190		 Test
equipment
121,169
3,214
(10,133)
853
-		 Transportatio
nequipment
712,250
14,586
(15,093)
(126,321)
23,348		 Office
equipment
674,087
20,695
(12,021)
89,433
17,717		 Other
equipment
104,760
1,977
(825)
887
809		 Equipment to
be inspected
and
construction
inprogress
2,512,956
2,338,983
-
(2,371,310)
74,168		 Total
45,788,383
2,918,267
(545,039)
-
1,299,265
$
1,639,764		 17,254,190 25,823,278 567,455 115,103 608,770 789,911 107,608 2,554,797 49,460,876
$ -
-
-
-
-
-		 8,891,490
488,814
-
(87,490)
9,973
(581,064)		 17,691,969
1,480,852
(3,811)
(512,545)
1,750
(1,059,626)		 449,094
50,909
-
(12,609)
1,152
(24,754)		 102,400
5,346
-
(905)
-
-		 336,396
97,597
-
(8,793)
(11,802)
(23,895)		 598,993
53,252
-
(11,016)
(1,073)
(42,130)		 87,923
4,615
-
(1,650)
-
(1,498)		 -
-
-
-
-
-		 28,158,265
2,181,385
(3,811)
(635,008)
-
(1,732,967)
$
-		 8,721,723 17,598,589 463,792 106,841 389,503 598,026 89,390 - 27,967,864
$ -
-
-
-
-
-		 7,778,231
506,433
-
(3,005)
25,410
214,748		 14,623,148
1,539,235
22,438
(371,272)
67,282
917,735		 407,774
39,751
-
(25,459)
72
9,177		 102,788
7,101
-
(9,591)
-
-		 331,875
94,685
-
(12,505)
(92,764)
10,237		 511,110
55,413
38
(11,435)
-
12,974		 81,210
4,928
-
(723)
-
581		 -
-
-
-
-
-		 23,836,136
2,247,546
22,476
(433,990)
-
1,165,452
$
-		 8,521,817 16,798,566 431,315 100,298 331,528 568,100 85,996 - 26,837,620
$
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
$
1,876,406		 7,996,618 8,393,952 140,364 11,513 204,882 193,223 18,461 2,878,967 21,714,386
$
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
$
1,639,764		 8,732,373 9,024,712 136,140 14,805 277,242 221,811 21,612 2,554,797 22,623,256

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

(Continued)

21

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

(g) Right-of-use assets

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

Cost:
Balance at January 1, 2025
Additions
Effect of changes in foreign exchange rates
Balance at September 30, 2025
Balance at January 1, 2024
Reductions
Effect of changes in foreign exchange rates
Balance at September 30, 2024
Accumulated depreciation and impairment losses:
Balance at January 1, 2025
Depreciation
Effect of changes in foreign exchange rates
Balance at September 30, 2025
Balance at January 1, 2024
Depreciation
Reductions
Effect of changes in foreign exchange rates
Balance at September 30, 2024
Carrying amount:
Balance at January 1, 2025
Balance at September 30, 2025
Balance at January 1, 2024
Balance at September 30, 2024		 Land
$ 1,968,728
28,012
(151,815)
$
1,844,925
$ 1,842,485
-
57,097
$
1,899,582
$ 278,564
36,678
(21,138)
$
294,104
$ 215,441
36,891
-
6,604
$
258,936
$
1,690,164
$
1,550,821
$
1,627,044
$
1,640,646		 Buildings
99,106
-
(5,944)
93,162
92,511
-
3,756
96,267
21,625
23,730
(1,599)
43,756
44,302
24,093
-
1,893
70,288
77,481
49,406
48,209
25,979		 Machinery
equipment
-
-
-
-
15,240
(15,921)
681
-
-
-
-
-
8,422
1,885
(10,684)
377
-
-
-
6,818
-		 Other
equipment
2,609
-
(187)
2,422
2,443
-
75
2,518
1,793
291
(135)
1,949
1,297
299
-
36
1,632
816
473
1,146
886		 Total
2,070,443
28,012
(157,946)
1,940,509
1,952,679
(15,921)
61,609
1,998,367
301,982
60,699
(22,872)
339,809
269,462
63,168
(10,684)
8,910
330,856
1,768,461
1,600,700
1,683,217
1,667,511

(h) Investment property

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

Cost:
Balance at January 1, 2025
Disposal
Effect of changes in foreign exchange rates
Balance at September 30, 2025		 Owned property
Land
Buildings
$ 6,858
404,980
-
(389,881)
-
(15,099)
$
6,858
-		 Total
411,838
(389,881)
(15,099)
6,858
Land
$ 6,858
-
-
$
6,858

(Continued)

22

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

Balance at January 1, 2024
Disposals
Effect of changes in foreign exchange rates
Balance at September 30, 2024
Accumulated depreciation and impairment losses:
Balance at January 1, 2025
Disposal
Effect of changes in foreign exchange rates
Balance at September 30, 2025
Balance at January 1, 2024
Depreciation
Disposal
Effect of changes in foreign exchange rates
Balance at September 30, 2024
Carrying amount:
Balance at January 1, 2025
Balance at September 30, 2025
Balance at January 1, 2024
Balance at September 30, 2024		 Owned property
Land
Buildings
$ 16,017
406,284
(9,569)
(22,334)
410
17,086
$
6,858
401,036
$ -
355,110
-
(341,870)
-
(13,240)
$
-
-
$ -
352,152
-
57
-
(14,030)
-
13,472
$
-
351,651
$
6,858
49,870
$
6,858
-
$
16,017
54,132
$
6,858
49,385		 Total
422,301
(31,903)
17,496
407,894
355,110
(341,870)
(13,240)
-
352,152
57
(14,030)
13,472
351,651
56,728
6,858
70,149
56,243
Land
$ 16,017
(9,569)
410
$
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 the 2nd floor of Yuanhong City real estate has been completed. Subsequently, a sales agreement was signed and completed for the 1st, 4th and 5th floors of Yuanhong City real estate in September 2025, resulting total sale price $349,668 thousand and $301,657 thousand was recognized as gain on disposal of assets.

The Group signed a sales agreement in March 2024 to sell Eagle Crest, an American real estate. The sale price was $42,700 thousand, and the sale has been completed in the month when the sales agreement was signed, and $24,827 thousand was recognized as gain on disposal of assets.

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

(Continued)

23

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

(i) Intangible assets

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

Costs
Balance at January 1, 2025
Additions
Disposal / Obsolescence
Effect of changes in foreign exchange rates
Balance at September 30, 2025
Balance at January 1, 2024
Additions
Disposal / Obsolescence
Effect of changes in foreign exchange rates
Balance at September 30, 2024
Accumulated amortization and impairment
losses
Balance at January 1, 2025
Amortization
Disposal / Obsolescence
Effect of changes in foreign exchange rates
Balance at September 30, 2025
Balance at January 1, 2024
Amortization
Disposal / Obsolescence
Effect of changes in foreign exchange rates
Balance at September 30, 2024
Carrying amounts:
Balance at January 1, 2025
Balance at September 30, 2025
Balance at January 1, 2024
Balance at September 30, 2024		 Goodwill
$ 439,101
-
-
(9,078)
$
430,023
$ 431,028
-
-
3,666
$
434,694
$ 122,967
-
-
(8,620)
$
114,347
$ 115,304
-
-
3,482
$
118,786
$
316,134
$
315,676
$
315,724
$
315,908		 Computer
software
449,680
68,420
(29,475)
(26,708)
461,917
364,866
84,026
(32,964)
9,084
425,012
306,362
61,982
(28,897)
(19,870)
319,577
256,892
55,723
(32,964)
7,160
286,811
143,318
142,340
107,974
138,201		 Total
888,781
68,420
(29,475)
(35,786)
891,940
795,894
84,026
(32,964)
12,750
859,706
429,329
61,982
(28,897)
(28,490)
433,924
372,196
55,723
(32,964)
10,642
405,597
459,452
458,016
423,698
454,109

(Continued)

24

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

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

(j) Short-term borrowings

The short-term borrowings were summarized as follows:

Unsecured bank loans
Range of interest rates		 September 30,
2025
$
5,216,929
1.70%~6.30%		 December 31,
2024
2,983,008
1.70%~6.50%		 September 30,
2024
5,485,828
1.685%~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 September 30,
2025
$ -
1,493,307
64,930
1,558,237
(64,930)
$
1,493,307
0.10%~5.15%
2026~2027		 December 31,
2024
1,500,000
1,830,869
66,794
3,397,663
-
3,397,663
0.10%~5.44%
2026		 September 30,
2024
TWD
USD
INR		 -
1,850,812
64,123
1,914,935
-
1,914,935
0.10%~6.47%
2026

(l) Lease liabilities

The Group lease liabilities were as follows:

Current
Non-current		 September 30,
2025
$
34,901
$
527,637		 December 31,
2024
39,408
577,463		 September 30,
2024
17,661
503,500

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

(Continued)

25

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

The amounts recognized in profit or loss were as follows:

Interest on lease liabilities For the three months ended
September 30
2025
2024
$
12,822
12,956		 For the nine months ended
September 30		 For the nine months ended
September 30
2025
$
12,822		 2025
39,632		 2024
39,156

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

Total cash outflow for leases For the nine months ended
September 30		 For the nine months ended
September 30
2025
$
72,956		 2024
78,574

(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 $145,127 thousand, $173,637 thousand, $477,921 thousand and $504,668 thousand for the three months ended September 30, 2025 and 2024 and the nine months ended September 30, 2025 and 2024, respectively.

(ii) Defined contribution plans

The pension costs incurred from the contributions to the pension plans amounted to $236,159 thousand, $270,449 thousand, $744,540 thousand and $806,208 thousand for the three months ended September 30, 2025 and 2024 and the nine months ended September 30, 2025 and 2024, respectively.

(Continued)

26

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
September 30
2025
2024
$ 502,862
336,177
(9,071)
(11,091)
493,791
325,086
304,325
146,590
$
798,116
471,676		 For the nine months ended
September 30
2025
2024
1,840,452
1,886,783
159,033
8,679
1,999,485
1,895,462
29,835
(212,713)
2,029,320
1,682,749
2025
$ 502,862
(9,071)
493,791
304,325
$
798,116		 2025
1,840,452
159,033
1,999,485
29,835
2,029,320

The amount of income tax benefit (expense) recognized in other comprehensive income (loss) for the three months ended September 30, 2025 and 2024 and the nine months ended September 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
September 30
2025
2024
$
(3,953)
2,530		 For the nine months ended
September 30
2025
2024
8,127
(2,624)
2025
$
(3,953)		 2025
8,127

(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)

27

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 September 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 September 30, 2025, December 31, 2024 and September 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:

September 30,
2025
Treasury share transactions
$ 4,143
Gain on disposal of assets
32,980
Capital surplus-premium from merger
2,160
Donation from shareholders
5,657
Issued shares of subsidiaries not
recognized in proportion to
shareholding
1,246
Difference between consideration and
carring amount of subsidiaries
acquired or disposed
183
$
46,369		 December 31,
2024
4,143
32,980
2,160
5,768
3,851
183
49,085		 September 30,
2024
4,143
32,980
2,160
4,537
3,851
183
47,854

(Continued)

28

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)

29

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 at January 1, 2025
Exchange differences on translation of foreign financial statement
Balance at September 30, 2025
Balance at January 1, 2024
Exchange differences on translation of foreign financial statement
Balance at September 30, 2024		 Exchange
differences on
translation of
foreign financial
statement
$ 360,006
(2,015,621)
$
(1,655,615)
$ (1,127,303)
718,945
$
(408,358)
  • (iv) Non-controlling interests (NCIs)
Balance at January 1
Shares attributed to non-controlling interests
Net profit
Exchange differences on translation of foreign financial
statements
Changes in ownership interests in subsidiaries
Earnings distribution to non-controlling interests
Balance at September 30		 For the nine months ended
September 30
2025
2024
$ 1,988,831
1,894,583
328,057
280,884
(141,219)
69,806
2,605
9,042
(274,749)
(395,542)
$
1,903,525
1,858,773
2025
$ 1,988,831
328,057
(141,219)
2,605
(274,749)
$
1,903,525

(Continued)

30

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

  • (p) Earnings per share

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

Basic earnings per share
Net profit attributable to
ordinary shareholders of the
Company
Weighted average number of
ordinary shares
Basic earnings per share
(dollars)		 For the three months ended
September 30
2025
2024
$
1,739,675
1,426,632
987,483
987,483
$
1.76
1.45		 For the nine months ended
September 30		 For the nine months ended
September 30
2025
$
1,739,675
987,483
$
1.76		 2025
3,608,069
987,483
3.65		 2024
4,282,974
987,483
4.34

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

Primary geographical markets
Singapore
America
Switzerland
Mainland China
Mexico
Other countries
Major products/services lines
Manufacturing and sale of footwear
Other		 For the three months ended September 30, 2025 For the three months ended September 30, 2025 For the three months ended September 30, 2025
Segments of
footwear
manufacturing
and sales
$ 15,777,105
1,570,473
1,239,918
947,954
598,115
555,064
$
20,688,629
$ 20,688,629
-
$
20,688,629		 Other
Segments
356,671
318,038
87,442
2,317
12,613
214,275
991,356
-
991,356
991,356		 Total
16,133,776
1,888,511
1,327,360
950,271
610,728
769,339
21,679,985
20,688,629
991,356
21,679,985

(Continued)

31

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
Other
Primary geographical markets
Singapore
America
Switzerland
Mainland China
Mexico
Other countries
Major products/services lines
Manufacturing and sale of footwear
Others		 For the three months ended September 30, 2024 For the three months ended September 30, 2024 For the three months ended September 30, 2024
Segments of
footwear
manufacturing
and sales
Other
Segments
Total
$ 16,967,735
445,329
17,413,064
1,731,011
274,645
2,005,656
1,044,986
-
1,044,986
948,045
1,510
949,555
533,851
16,739
550,590
511,058
244,143
755,201
$
21,736,686
982,366
22,719,052
$ 21,736,686
-
21,736,686
-
982,366
982,366
$
21,736,686
982,366
22,719,052
For the nine months ended September 30, 2025		 Total
17,413,064
2,005,656
1,044,986
949,555
550,590
755,201
22,719,052
21,736,686
982,366
22,719,052
Other
Segments
1,248,635
974,783
97,203
8,472
41,852
810,352
3,181,297
-
3,181,297
3,181,297		 Total
47,315,449
5,788,959
3,651,971
1,865,108
1,684,568
2,496,471
62,802,526
59,621,229
3,181,297
62,802,526

(Continued)

32

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 nine months ended September 30, 2024
Segments of
footwear
manufacturing
and sales
Other
Segments
Total
$ 49,134,189
1,446,473
50,580,662
5,449,467
821,670
6,271,137
2,785,548
209
2,785,757
2,449,494
10,547
2,460,041
1,464,213
53,051
1,517,264
1,263,364
723,974
1,987,338
$
62,546,275
3,055,924
65,602,199
$ 62,546,275
-
62,546,275
-
3,055,924
3,055,924
$
62,546,275
3,055,924
65,602,199
September 30,
2025
December 31,
2024
September 30,
2024
$ 8,239,722
8,118,995
8,623,307
-
-
-
$
8,239,722
8,118,995
8,623,307
$
1,093
1,141
1,612		 For the nine months ended September 30, 2024 For the nine months ended September 30, 2024 For the nine months ended September 30, 2024
Other
Segments
Total
1,446,473
50,580,662
821,670
6,271,137
209
2,785,757
10,547
2,460,041
53,051
1,517,264
723,974
1,987,338
3,055,924
65,602,199
-
62,546,275
3,055,924
3,055,924
3,055,924
65,602,199
December 31,
2024
September 30,
2024
8,118,995
8,623,307
-
-
8,118,995
8,623,307
1,141
1,612		 Total
50,580,662
6,271,137
2,785,757
2,460,041
1,517,264
1,987,338
65,602,199
62,546,275
3,055,924
65,602,199
8,623,307
-
8,623,307
1,612

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

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

(Continued)

33

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

The Company estimated its employee compensation at respectively $96,812 thousand, $38,800 thousand, $149,619 thousand and $116,400 thousand for the three months ended September 30, 2025 and 2024 and the nine months ended September 30, 2025 and 2024, and estimated its director compensation at $41,090 thousand, $32,318 thousand, $86,222 thousand and $98,217 thousand for the three months ended September 30, 2025 and 2024 and the nine months ended September 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 September 30, 2025 and 2024 and the nine months ended September 30, 2025 and 2024 were as follows:

Interest income from
bank deposits		 For the three months ended
September 30
2025
2024
$
9,031
23,277		 For the nine months ended
September 30		 For the nine months ended
September 30
2025
$
9,031		 2025
35,911		 2024
56,074
  • (ii) Other income

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

Rent income
Government subsidy
Other income		 For the three months ended
September 30
2025
2024
$ 3,201
6,170
9,705
8,952
84,074
70,674
$
96,980
85,796		 For the nine months ended
September 30		 For the nine months ended
September 30
2025
$ 3,201
9,705
84,074
$
96,980		 2025
14,307
35,254
248,247
297,808		 2024
12,655
113,700
240,559
366,914

(Continued)

34

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 September 30, 2025 and 2024 and the nine months ended September 30, 2025 and 2024 were as follows:

Foreign exchange gains
(losses)
Losses on disposal of
property, plant and
equipment
Gain on disposal of
investment property
Reversal (porvision) of
impairment loss
Loss from lease
modification
Others		 For the three months ended
September 30
2025
2024
$ 239,137
(321,904)
(4,887)
(3,838)
220,930
26
2,218
153
-
(920)
(9,884)
(13,630)
$
447,514
(340,113)		 For the nine months ended
September 30
2025
2024
(340,465)
362,706
(10,997)
(19,729)
301,657
24,827
3,811
(22,476)
-
(920)
(153,167)
(20,448)
(199,161)
323,960		 For the nine months ended
September 30
2025
2024
(340,465)
362,706
(10,997)
(19,729)
301,657
24,827
3,811
(22,476)
-
(920)
(153,167)
(20,448)
(199,161)
323,960
2025
$ 239,137
(4,887)
220,930
2,218
-
(9,884)
$
447,514		 2025
(340,465)
(10,997)
301,657
3,811
-
(153,167)
(199,161)
323,960
  • (iv) Financial costs

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

Interest expense For the three months ended
September 30
2025
2024
$
65,277
77,864		 For the nine months ended
September 30
2025
2024
187,505
213,629
2025
$
65,277		 2025
187,505

  • (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 September 30, 2025, December 31, 2024 and September 30, 2024, 67%, 69% and 72% of the Group’ s total receivables were concentrated within a single overseas customer.

(Continued)

35

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:

September 30, 2025
Non-derivative financial liabilities
Notes and accounts payable
Other payables
Unsecured bank loans
Other long-term borrowings
Lease liabilities
December 31, 2024
Non-derivative financial liabilities
Notes and accounts payable
Other payables
Unsecured bank loans
Other long-term borrowings
Lease liabilities
September 30, 2024
Non-derivative financial liabilities
Notes and accounts payable
Other payables
Unsecured bank loans
Other long-term borrowings
Lease liabilities		 Carrying
amount
$ 3,898,332
4,779,264
6,710,236
64,930
562,538
$
16,015,300
$ 4,131,129
5,630,757
6,313,877
66,794
616,871
$
16,759,428
$ 4,081,608
4,917,791
7,336,640
64,123
521,161
$
16,921,323		 Contractual
cash flows
3,898,332
4,779,264
6,866,811
64,962
1,378,387
16,987,756
4,131,129
5,630,757
6,543,413
66,879
1,487,446
17,859,624
4,081,608
4,917,791
7,573,376
64,219
1,345,092
17,982,086		 Less than
6 months
3,897,464
4,450,410
5,267,461
32
58,652
13,674,019
4,129,971
5,213,604
2,709,433
33
59,875
12,112,916
4,080,274
4,802,467
5,330,182
32
48,166
14,261,121		 6 to 12
months
868
328,854
41,741
64,930
27,886
464,279
1,158
417,153
427,624
34
33,180
879,149
1,334
115,324
294,197
32
19,064
429,951		 1 to 2 years
-
-
1,557,609
-
78,446
1,636,055
-
-
3,406,356
66,812
88,159
3,561,327
-
-
1,948,997
64,155
64,707
2,077,859		 2 to 5 years
-
-
-
-
169,969
169,969
-
-
-
-
187,155
187,155
-
-
-
-
164,098
164,098		 More than
5 years
-
-
-
-
1,043,434
1,043,434
-
-
-
-
1,119,077
1,119,077
-
-
-
-
1,049,057
1,049,057

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

(Continued)

36

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

  • (iii) Currency risks

  • 1) Exposure to currency risks

September 30, 2025 September 30, 2025
Foreign currency
(In thousands) Exchange rate TWD
Financial assets
Monetary items
USD $ 268,904 USD：TWD 30.395 8,173,343
30,049 USD：CNY 7.1055 913,354
1,606 USD：INR 88.6400 48,821
7 USD：VND 26,326 210
VND 764,354,341 VND：USD 0.00004 917,225
INR 2,082,732 INR：USD 0.0113 714,169
IDR 79,433,097 IDR：USD 0.0001 142,980
Non-monetary items
USD 45,292 USD：TWD 30.395 1,376,637
Financial liabilities
Monetary items
USD 29,904 USD：TWD 30.395 908,922
6,359 USD：CNY 7.1055 193,287
63 USD：VND 26,326 1,919
VND 1,630,563,167 VND：USD 0.00004 1,956,676
INR 3,341,969 INR：USD 0.0113 1,145,961
IDR 1,111,621,205 IDR：USD 0.0001 2,000,918
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)

37

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
September 30, 2024
Foreign currency
(In thousands)
Exchange rate
TWD
Financial assets
Monetary items
USD
$ 271,030
USD：TWD
31.600
8,564,547
34,615 USD：CNY
7.0074
1,093,823
262 USD：VND
24,570
8,272
VND
716,728,210
VND：USD
0.00004
931,747
INR
1,773,798
INR：USD
0.0120
670,318
IDR
96,950,386
IDR：USD
0.0001
203,596
Non-monetary items
USD
39,020 USD：TWD
31.600
1,233,031
Financial liabilities
Monetary items
USD
30,341
USD：TWD
31.600
958,787
10,936
USD：CNY
7.0074
345,578
120 USD：VND
24,570
3,786
VND
1,567,815,885 VND：USD
0.00004
2,038,161
INR
3,380,665
INR：USD
0.0120
1,277,553
IDR
1,182,465,003
IDR：USD
0.0001
2,483,177		 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
September 30, 2024

(Continued)

38

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 nine months ended September 30, 2025 and 2024, would have increased the net profit before tax by $235,121 thousand and $218,263 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 nine months ended September 30, 2025 and 2024, foreign exchange (loss) gain (including realized and unrealized portions) amounted to $(340,465) thousand and $362,706 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 $20,393 thousand and $23,192 thousand for the nine months ended September 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:

(Continued)

39

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

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

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

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

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

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

  • (u) Financial risk management

  • (i) Overview

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

  • 1) credit risk

  • 2) liquidity risk

  • 3) market risk

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

  • (ii) Risk management framework

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

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)

40

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 September 30, 2025, December 31, 2024 and September 30, 2024, there was no guarantee outstanding.

(Continued)

41

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 September 30, 2025, December 31, 2024 and September 30, 2024, amounted to $12,388,951 thousand, $13,798,013 thousand and $12,202,928 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)

42

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		 September 30,
2025
$ 26,068,191
(4,753,552)
21,314,639
25,297,146
$
46,611,785
%
45.73		 December 31,
2024
25,563,900
(5,140,543)
20,423,357
28,828,882
49,252,239
%
41.47		 September 30,
2024
26,186,368
(3,309,020)
22,877,348
25,768,868
48,646,216
%
47.03

(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 nine months ended September 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
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
(1,711,828)
2,301,060
(33,324)
555,908
Cash flows
(1,664,452)
3,222,086
(39,418)
1,518,216		 Non-cash changes
Acquisition
Foreign
exchange
movement
Others
-
(127,598)
-
-
(67,139)
-
28,012
(49,021)
-
28,012
(243,758)
-
Non-cash changes
Acquisition
Foreign
exchange
movement
Others
-
70,168
-
-
13,633
-
-
17,277
(4,317)
-
101,078
(4,317)		 September
30, 2025
1,558,237
5,216,929
562,538
7,337,704
September
30, 2024
1,914,935
5,485,828
521,161
7,921,924

(Continued)

43

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
September 30
2025
2024
$
2,417
2,525		 For the nine months ended
September 30		 For the nine months ended
September 30
2025
$
2,417		 2025
7,374		 2024
7,456
  • (ii) Receivables due from Related Parties

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

Account item
Category of
related party
September 30,
2025
Other receivables The Group is a joint
venture under the
joint agreement
$
804		 December 31,
2024
September 30,
2024
963
838
  • (iii) Property transactions

Purchases of property, plant and equipment

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

(Continued)

44

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

  • (c) Key management personnel transactions

Key management personnel compensation comprised:

Short-term employee benefits
Post-employment benefits		 For the three months ended
September 30
2025
2024
$ 130,769
84,443
1,345
1,299
$
132,114
85,742		 For the nine months ended
September 30		 For the nine months ended
September 30
2025
$ 130,769
1,345
$
132,114		 2025
276,445
4,144
280,589		 2024
257,760
3,809
261,569

(8) Pledged assets:

The book values of pledged assets were as follows:

Pledged assets Object September 30,
2025
$ 393
88,140
$
88,533		 December 31,
2024
956
103,172
104,128		 September 30,
2024
Other current
financial assets
Other non-current
financial assets		 Customs deposit and
lease deposit
Customs deposit and
lease deposit		 1,398
101,668
103,066

(9) Commitments and contingencies:

  • (a) As of September 30, 2025, December 31, 2024 and September 30, 2024, the Group has issued promissory notes for short-term and long-term borrowings of $9,235,550 thousand, $9,946,150 thousand and $9,344,000 thousand, respectively.

  • (b) As of September 30, 2025, December 31, 2024 and September 30, 2024, the Group had payables in respect of important construction contracts, amounting to $1,204,821 thousand, $1,541,756 thousand and $1,535,499 thousand, respectively.

(10) Losses Due to Major Disasters: None

(11) Subsequent Events: None

(Continued)

45

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
September 30, 2025		 For the three months ended
September 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		 $ 4,471,773
482,161
289,584
554,504
501,225
2,983		 1,782,363
146,573
91,702
156,690
228,607
18,073		 6,254,136
628,734
381,286
711,194
729,832
21,056		 4,947,923
570,066
349,787
659,539
540,136
1,651		 1,703,593
152,855
94,299
180,096
239,025
17,884		 6,651,516
722,921
444,086
839,635
779,161
19,535
By function
By item		 For the nine months ended
September 30, 2025		 For the nine months ended
September 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		 $ 13,458,310
1,521,420
944,671
1,590,937
1,535,348
8,846		 4,829,299
449,107
277,790
457,228
706,736
53,136		 18,287,609
1,970,527
1,222,461
2,048,165
2,242,084
61,982		 14,746,650
1,671,884
1,030,478
1,868,438
1,598,486
4,390		 5,083,174
451,424
280,398
516,800
712,285
51,333		 19,829,824
2,123,308
1,310,876
2,385,238
2,310,771
55,723

(b) Seasonality of operation

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

(Continued)

46

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 nine months ended September 30, 2025:

  • i. Loans to other parties: None

  • ii. Guarantees and endorsements for other parties: None

  • iii. Significant securities held as of September 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)

==> picture [452 x 415] intentionally omitted <==

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

Transactions with terms Notes/ Accounts receivable
Transaction details
different from others (payable)
company Name of Related party relationshipNature of Purchase/Sale Amount Percentage of purchases/total Payment terms Unit price Payment terms Ending balance Percentage of total notes/ accounts Note
receivable
sales (payable)
Feng Tay PT Feng Tay Parent and Sale 1,166,519 2% 90 days Selling price of - 245,117 2% -
Enterprises Co., Indonesia Enterprises subsidiary goods was
Ltd. determined through
negotiations and
there were no other
transactions with
non-related parties
to compare with.
〞 〞 〞 Purchase 4,796,604 7% 20 days 〞 - (522,731) (7%) -
〞 India Tindivanam 〞 Sale 619,642 1% 90 days 〞 - 648,880 6% -
Footwear Private
Limited
〞 〞 〞 Purchase 607,122 1% 30 days 〞 - (71,561) (1%) -
〞 Lotus Footwear 〞 Sale 1,666,591 2% 90 days 〞 - 535,347 5% -
Enterprises
Private Limited
(India Branch)
〞 〞 〞 Purchase 3,816,683 5% 30 days 〞 - (529,770) (8%) -
〞 East Wind Footwear 〞 Sale 1,143,526 2% 60/90 days 〞 - 365,320 3% -
Company Limited
(India Branch)
〞 〞 〞 Purchase 2,620,071 4% 30 days 〞 - (337,418) (5%) -
〞 Fairway Enterprises 〞 Sale 1,608,104 2% 30 days 〞 - 272,923 2% -
Company Limited
(India Branch)
〞 〞 〞 Purchase 3,497,040 5% 30 days 〞 - (399,589) (6%) -
〞 Fujian Lifeng 〞 Sale 443,820 1% 15 days 〞 - 25,169 - -
Footwear Industrial
Development
Company Limited
〞 〞 〞 Purchase 2,040,338 3% 15 days 〞 - (101,879) (1%) -
〞 Fujian San Feng 〞 Sale 375,623 1% 15 days 〞 - 44,761 - -
Footwear Company
Limited
〞 〞 〞 Purchase 1,499,861 2% 15 days 〞 - (32,997) - -
〞 Fujian Xiefeng 〞 Sale 838,347 1% 15 days 〞 - 34,708 - -
Footwear Company
Limited
〞 〞 〞 Purchase 3,112,155 4% 15 days 〞 - (188,316) (3%) -
〞 Fujian Great Hope 〞 Purchase 826,424 1% 60 days 〞 - (129,183) (2%) -
Footwear Company
Limited
〞 Suzhou Yufeng 〞 Sale 167,053 - 15 days 〞 - 34,496 - -
Plastics Technology
Co., Ltd.
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47

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

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

Transactions with terms Notes/ Accounts receivable
Transaction details
different from others (payable)
company Name of Related party relationshipNature of Purchase/Sale Amount Percentage of purchases/total Payment terms Unit price Payment terms Ending balance Percentage of total notes/ accounts Note
receivable
sales (payable)
Feng Tay Fujian Putian Xie Parent and Purchase 112,247 - 30 days Selling price of - (23,510) - -
Enterprises Co., Feng Mold subsidiary goods was
Ltd. Company Limited determined through
negotiations and
there were no other
transactions with
non-related parties
to compare with
〞 Dona Pacific 〞 Sale 1,224,423 2% 30 days 〞 - 158,761 1% -
(Vietnam) Co., Ltd.
〞 〞 〞 Purchase 5,095,850 7% 15 days 〞 - (337,282) (5%) -
〞 . Vietnam Dona Orient 〞 Sale 1,882,513 3% 30 days 〞 - 280,785 3% -
Co., Ltd.
〞 〞 〞 Purchase 4,462,338 6% 30 days 〞 - (432,327) (6%) -
〞 Dona Victor Footwear 〞 Sale 935,607 1% 30 days 〞 - 64,861 1% -
Co., Ltd.
〞 〞 〞 Purchase 5,292,671 8% 30 days 〞 - (588,124) (8%) -
〞 Vietnam Dona 〞 Sale 3,154,696 4% 15 days 〞 - 94,361 1% -
Standard Footwear
Co., Ltd
〞 〞 〞 Purchase 12,573,064 18% 30 days 〞 - (1,240,252) (18%) -
〞 Vung Tau Orient Co., 〞 Sale 935,528 1% 120 days 〞 - 495,875 5% -
Ltd
〞 〞 〞 Purchase 2,462,856 4% 10 days 〞 - (157,789) (2%) -
〞 Vietnam Nam Ha 〞 Sale 311,611 - 90 days 〞 - 188,736 2% -
Footwear Company
Limited
〞 〞 〞 Purchase 1,068,277 2% 10 days 〞 - (94,856) (1%) -
Great Eastern Fujian Xiefeng Associate Sale 134,027 99% 20 days 〞 - - - -
Industries Footwear Company
Limited Limited
PT Feng Tay Feng Tay Enterprises Subsidiary Sale 4,796,604 100% 20 days 〞 - 522,731 100% -
Indonesia Co., Ltd. and parent
Enterprises
〞 〞 〞 Purchase 1,166,519 35% 90 days 〞 - (245,117) (51%) -
Fujian Lifeng Feng Tay Enterprises Subsidiary Sale 2,040,338 79% 15 days 〞 - 101,879 54% -
Footwear Co., Ltd. and parent
Industrial
Development
Company
Limited
〞 〞 〞 Purchase 443,820 33% 15 days 〞 - (25,169) (16%) -
〞 Fujian Xiefeng Associate 〞 195,842 15% 15~20 days 〞 - (13,094) (8%) -
Footwear Company
Limited
〞 Fujian Putian Xie 〞 〞 108,368 8% 10~15 days 〞 - (2,846) (2%) -
Feng Mold
Company Limited
Fujian Xiefeng Feng Tay Enterprises Subsidiary Sale 3,112,155 81% 15 days 〞 - 188,316 59% -
Footwear Co., Ltd and parent
Company
Limited
〞 Fujian Lifeng Associate 〞 195,842 5% 15~20 days 〞 - 13,094 4% -
Footwear Industrial
Development
Company Limited
〞 Fujian San Feng 〞 〞 132,429 3% 15~20 days 〞 - 3,517 1% -
Footwear Company
Limited
〞 Feng Tay Enterprises Subsidiary Purchase 838,347 40% 15 days 〞 - (34,708) (17%) -
Co., Ltd and parent
〞 Great Eastern Associate 〞 134,027 6% 20 days 〞 - - - -
Industries Limited
Fujian San Feng Feng Tay Enterprises Subsidiary Sale 1,499,861 62% 15 days 〞 - 32,997 12% -
Footwear Co., Ltd. and parent
Company
Limited
〞 . 〞 〞 Purchase 375,623 31% 15 days 〞 - (44,761) (43%) -
〞 Fujian Xiefeng Associate 〞 132,429 11% 15~20 days 〞 - (3,517) (3%) -
Footwear Company
Limited
〞 Fujian Putian Xie 〞 〞 113,343 10% 10~15 days 〞 - (1,617) (2%) -
Feng Mold
Company Limited
Fujian Great Feng Tay Enterprises Subsidiary Sale 826,424 99% 60 days 〞 - 129,183 97% -
Hope Footwear Co., Ltd. and parent
Company
Limited
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FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

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

Transactions with terms Notes/ Accounts receivable
Transaction details
different from others (payable)
company Name of Related party relationshipNature of Purchase/Sale Amount Percentage of purchases/total Payment terms Unit price Payment terms Ending balance Percentage of total notes/ accounts Note
receivable
sales (payable)
Fujian Great Fujian Putian Xie Associate Purchase 105,828 29% 10~60 days Selling price of - (24,240) (36%) -
Hope Footwear Feng Mold goods was
Company Company Limited determined through
Limited negotiations and
there were no other
transactions with
non-related parties
to compare with
Fujian Putian Fujian Lifeng 〞 Sale 108,368 19% 10~15 days 〞 - 2,846 5% -
Xie Feng Mold Footwear Industrial
Company Development
Limited Company Limited
〞 Fujian Great Hope 〞 〞 105,828 18% 10~60 days 〞 - 24,240 40% -
Footwear Company
Limited
〞 Fujian San Feng 〞 〞 113,343 20% 10~15 days 〞 - 1,617 3% -
Footwear Company
Limited
〞 Feng Tay Enterprises Subsidiary 〞 112,247 20% 30 days 〞 - 23,510 39% -
Co., Ltd. and parent
Suzhou Yufeng Feng Tay Enterprises Subsidiary Purchase 167,053 77% 15 days 〞 . - (34,496) (82%) -
Plastics Co., Ltd. and parent
Technology
Co., Ltd.
Vietnam Shoe Hong Kong Shoe Associate Sale 5,652,375 100% Payment 〞 - 1,678,940 100% -
Majesty Co., Majesty Trading after
Ltd. Company Limited
Delivery
Hong Kong Vietnam Shoe 〞 Purchase 5,652,375 100% Payment 〞 - (1,678,940) (100%) -
Shoe Majesty Majesty Co., Ltd. after
Trading
Company Delivery
Limited
Dona Victor Feng Tay Enterprises Subsidiary Sale 5,292,671 100% 30 days 〞 - 588,124 99% -
Footwear Co., Co., Ltd. and parent
Ltd.
〞 〞 〞 Purchase 935,607 71% 30 days 〞 - (64,861) (18%) -
〞 Dona Pacific Associate 〞 109,608 8% 60 days 〞 - (14,117) (4%) -
(Vietnam) Co., Ltd.
〞 Dona Victor Molds 〞 〞 159,124 12% 60 days 〞 - (18,245) (5%) -
Mfg. Co., Ltd.
Dona Pacific Feng Tay Enterprises Subsidiary Sale 5,095,850 93% 15 days 〞 - 337,282 89% -
(Vietnam) Co., Co., Ltd. and parent
Ltd.
〞 Vietnam Dona Orient Associate 〞 142,331 3% 60 days 〞 - 14,654 4% -
Co., Ltd.
〞 Vietnam Dona 〞 〞 108,299 2% 〞 〞 - 10,046 3% -
Standard Footwear
Co., Ltd.
〞 Dona Victor Footwear 〞 〞 109,608 2% 〞 〞 - 14,117 4% -
Co., Ltd.
〞 Feng Tay Enterprises Subsidiary Purchase 1,224,423 74% 30 days 〞 - (158,761) (35%) -
Co., Ltd. and parent
Vietnam Dona Feng Tay Enterprises Subsidiary Sale 4,462,338 72% 30 days 〞 - 432,327 66% -
Orient Co., Ltd. Co., Ltd. and parent
〞 〞 〞 Purchase 1,882,513 62% 30 days 〞 - (280,785) (59%) -
〞 Vietnam Dona Associate 〞 100,160 3% 60 days 〞 - (11,357) (2%) -
Standard Footwear
Co., Ltd.
〞 Dona Pacific 〞 〞 142,331 5% 〞 〞 - (14,654) (3%) -
(Vietnam) Co., Ltd.
〞 Dona Victor Molds 〞 〞 106,872 4% 〞 〞 - (10,299) (2%) -
Mfg. Co., Ltd.
Dona Victor Dona Victor Footwear 〞 Sale 159,124 29% 60 days 〞 - 18,245 24% -
Molds Mfg. Co., Ltd
Co.,Ltd
〞 Vietnam Dona Orient 〞 〞 106,872 19% 〞 〞 - 10,299 13% -
Co., Ltd.
〞 Vietnam Dona 〞 〞 200,751 36% 〞 〞 - 28,897 38% -
Standard Footwear
Co., Ltd.
Vung Tau Feng Tay Enterprises Subsidiary Sale 2,462,856 100% 10 days 〞 - 157,789 98% -
Orient Co., Ltd. Co., Ltd. and parent
〞 〞 〞 Purchase 935,528 89% 120 days 〞 - (495,875) (83%) -
Vietnam Dona Feng Tay Enterprises Subsidiary Sale 12,573,064 98% 30 days 〞 - 1,240,252 97% -
Standard Co., Ltd. and parent
Footwear Co.,
Ltd
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49

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

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

Transactions with terms Notes/ Accounts receivable
Transaction details
different from others (payable)
company Name of Related party relationshipNature of Purchase/Sale Amount Percentage of purchases/total Payment terms Unit price Payment terms Ending balance Percentage of total notes/ accounts Note
receivable
sales (payable)
Vietnam Dona Vietnam Dona Orient Associate Sale 100,160 1% 60 days Selling price of - 11,357 1% -
Standard Co., Ltd. goods was
Footwear Co., determined through
Ltd negotiations and
there were no other
transactions with
non-related parties
to compare with
〞 Feng Tay Enterprises Subsidiary Purchase 3,154,696 87% 15 days 〞 - (94,361) (15%) -
Co., Ltd. and parent
〞 Dona Pacific Associate 〞 108,299 3% 60 days 〞 - (10,046) (2%) -
(Vietnam) Co., Ltd.
〞 Dona Victor Molds 〞 〞 200,751 6% 〞 〞 - (28,897) (5%) -
Mfg. Co., Ltd.
Vietnam Nam Feng Tay Enterprises Subsidiary Sale 1,068,277 98% 10 days 〞 - 94,856 96% -
Ha Footwear Co., Ltd. and parent
Company
Limited
〞 〞 〞 Purchase 311,611 82% 90 days 〞 - (188,736) (66%) -
India Feng Tay Enterprises Subsidiary Sale 607,122 93% 30 days 〞 - 71,561 98% -
Tindivanam Co., Ltd. and parent
Footwear
Private Limited
〞 〞 〞 Purchase 619,642 91% 90 days 〞 - (648,880) (93%) -
East Wind Feng Tay Enterprises Subsidiary Sale 2,620,071 97% 30 days 〞 - 337,418 95% -
Footwear Co., Ltd. and parent
Company
Limited (India
Branch)
〞 〞 〞 Purchase 1,143,526 95% 60/90 days 〞 - (365,320) (92%) -
Lotus Footwear Feng Tay Enterprises Subsidiary Sale 3,816,683 94% 30 days 〞 - 529,770 92% -
Enterprises Co., Ltd. and parent
Private Limited
(India Branch)
〞 〞 〞 Purchase 1,666,591 98% 90 days 〞 - (535,347) (92%) -
Fairway Feng Tay Enterprises Subsidiary Sale 3,497,040 97% 30 days 〞 - 399,589 98% -
Enterprises Co., Ltd. and parent
Company
Limited (India
Branch)
〞 〞 〞 Purchase 1,608,104 97% 30 days 〞 - (272,923) (89%) -
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Note: The inter-company transactions were eliminated in the consolidated financial statement.

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

stock:

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(In Thousands of New Taiwan Dollar)
Nature of Ending Overdue Amounts received Allowance
Name of company Related party balance Turnover Amount Action in subsequent for credit
relationship (Note 1) taken period loss
Feng Tay Enterprises PT Feng Tay Indonesia Parent and 245,117 4.30 - - 4,975 -
Co., Ltd. Enterprises subsidiary
〞 India Tindivanam 〞 648,880 1.53 555,025 - - -
Footwear Private Limited
〞 Lotus Footwear 〞 535,347 3.91 - - 20,166 -
Enterprises Private
Limited (India Branch)
〞 East Wind Footwear 〞 365,320 4.30 8,636 - 24,207 -
Company Limited (India
Branch)
〞 Fairway Enterprises 〞 272,923 6.84 - - 43,184 -
Company Limited (India
Branch)
〞 〞 〞 101,724 Note 2 - - - -
〞 〞
Dona Pacific (Vietnam) 158,761 12.11 - - 88,174 -
Co., Ltd.
〞 Vietnam Dona Orient Co., 〞 280,785 10.21 - - 157,544 -
Ltd
〞 Vung Tau Orient Co., Ltd. 〞 495,875 3.09 - - 50,682 -
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FENG TAY ENTERPRISES COMPANY LIMITED AND ITS SUBSIDIARIES Notes to the Consolidated Financial Statements

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Nature of Ending Overdue Amounts received Allowance
Name of company Related party balance Turnover Amount Action in subsequent for credit
relationship (Note 1) taken period loss
Feng Tay Enterprises Vietnam Nam Ha Parent and 188,736 3.06 - - 29,142 -
Co., Ltd. Footwear Company subsidiary
Limited
PT Feng Tay Feng Tay Enterprises Co., Subsidiary and 522,731 14.63 - - 335,260 -
Indonesia Enterprises Ltd. parent
Fujian Lifeng Feng Tay Enterprises Co., Subsidiary and 101,879 22.71 - - 101,879 -
Footwear Industrial Ltd. parent
Development
Company Limited
Fujian Xiefeng Feng Tay Enterprises Co., Subsidiary and 188,316 17.17 - - 188,308 -
Footwear Company Ltd. parent
Limited
Fujian Great Hope Feng Tay Enterprises Co., Subsidiary and 129,183 7.42 - - 54,661 -
Footwear Company Ltd. parent
Limited
Vietnam Shoe Hong Kong Shoe Majesty Associate 1,678,940 5.92 - - 138,999 -
Majesty Co., Ltd. Trading Company Limited
Dona Victor Feng Tay Enterprises Co., Subsidiary and 588,124 10.38 - - 404,539 -
Footwear Co., Ltd. Ltd. parent
Dona Pacific Feng Tay Enterprises Co., Subsidiary and 337,282 19.73 - - 337,282 -
(Vietnam) Co., Ltd. Ltd. parent
Vietnam Dona Orient Feng Tay Enterprises Co., Subsidiary and 432,327 11.83 - - 333,656 -
Co., Ltd. Ltd. parent
Vung Tau Orient Feng Tay Enterprises Co., Subsidiary and 157,789 19.67 - - 157,737 -
Co., Ltd. Ltd. parent
Vietnam Dona Feng Tay Enterprises Co., Subsidiary and 1,240,252 13.46 - - 777,535 -
Standard Footwear Ltd. parent
Co., Ltd.
East Wind Footwear Feng Tay Enterprises Co., Subsidiary and 337,418 8.38 - - 164,383 -
Company Limited Ltd. parent
(India Branch)
Lotus Footwear Feng Tay Enterprises Co., Subsidiary and 529,770 9.51 - - 291,823 -
Enterprises Limited Ltd. parent
(India Branch)
Fairway Enterprises Feng Tay Enterprises Co., Subsidiary and 399,589 12.81 - - 231,816 -
Company Limited Ltd. parent
(India Branch)
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Note 1: The inter-company transactions were eliminated in the consolidated financial statement. 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)

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Nature of Intercompany transactions
No. Name of company Name of counter- relationship Percentage of the
(Note1) party Account name Amount Trading terms consolidated net revenue
(Note 2) or total assets
0 Feng Tay Enterprises PT Feng Tay 1 Sales revenue 1,166,519 Note 3 1.8574%
Co., Ltd. Indonesia Enterprises
〞 〞 〞 〞 Cost of sales 4,796,604 Note 3 7.6376%
〞 〞 〞 〞 Accounts receivable due 245,117 90 days 0.4772%
from related parties
〞 〞 〞 〞 Accounts payable to 522,731 20 days 1.0177%
related parties
〞 〞 India Tindivanam 〞 Sales revenue 619,642 Note 3 0.9867%
Footwear Private
Limited
〞 〞 〞 〞 Cost of sales 607,122 Note 3 0.9667%
〞 〞 〞 〞 Accounts receivable due 648,880 90 days 1.2633%
from related parties
〞 〞 〞 〞 Accounts payable to 71,561 30 days 0.1393%
related parties
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51

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

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Nature of Intercompany transactions
No. Name of company Name of counter- relationship Percentage of the
(Note1) party Account name Amount Trading terms consolidated net revenue
(Note 2) or total assets
0 Feng Tay Enterprises Lotus Footwear 1 Sales revenue 1,666,591 Note 3 2.6537%
Co., Ltd. Enterprises
Private Limited
(India Branch)
〞 〞 〞 〞 Cost of sales 3,816,683 Note 3 6.0773%
〞 〞 〞 〞 Accounts receivable due 535,347 90 days 1.0422%
from related parties
〞 〞 〞 〞 Accounts payable to 529,770 30 days 1.0314%
related parties
〞 〞 East Wind Footwear 〞 Sales revenue 1,143,526 Note 3 1.8208%
Company Limited
(India Branch)
〞 〞 〞 〞 Cost of sales 2,620,071 Note 3 4.1719%
〞 〞 〞 〞 Accounts receivable due 365,320 60/90 days 0.7112%
from related parties
〞 〞 〞 〞 Accounts payable to 337,418 30 days 0.6569%
related parties
〞 〞 Fairway Enterprises 〞 Sales revenue 1,608,104 Note 3 2.5606%
Company Limited
(India Branch)
〞 〞 〞 〞 Cost of sales 3,497,040 Note 3 5.5683%
〞 〞 〞 〞 Accounts receivable due 272,923 30 days 0.5313%
from related parties
〞 〞 〞 〞 Accounts payable to 399,589 30 days 0.7779%
related parties
〞 〞 Fujian Lifeng 〞 Sales revenue 443,820 Note 3 0.7067%
Footwear Industrial
Development
Company Limited
〞 〞 〞 〞 Cost of sales 2,040,338 Note 3 3.2488%
〞 〞 〞 〞 Accounts receivable due 25,169 15 days 0.0490%
from related parties
〞 〞 〞 〞 Accounts payable to 101,879 15 days 0.1983%
related parties
〞 〞 Fujian San Feng 〞 Sales revenue 375,623 Note 3 0.5981%
Footwear Company
Limited
〞 〞 〞 〞 Cost of sales 1,499,861 Note 3 2.3882%
〞 〞 〞 〞 Accounts receivable due 44,761 15 days 0.0871%
from related parties
〞 〞 〞 〞 Accounts payable to 32,997 15 days 0.0642%
related parties
〞 〞 Fujian Xiefeng 〞 Sales revenue 838,347 Note 3 1.3349%
Footwear Company
Limited
〞 〞 〞 〞 Cost of sales 3,112,155 Note 3 4.9555%
〞 〞 〞 〞 Accounts receivable due 34,708 15 days 0.0676%
from related parties
〞 〞 〞 〞 Accounts payable to 188,316 15 days 0.3666%
related parties
〞 〞 Fujian Great Hope 〞 Cost of sales 826,424 Note 3 1.3159%.
Footwear Company
Limited
〞 〞 〞 〞 Accounts payable to 129,183 60 days 0.2515%
related parties
〞 〞 Fujian Putian Xie 〞 Cost of sales 112,247 Note 3 0.1787%
Feng Mold
Company Limited
〞 〞 〞 〞 Accounts payable to 23,510 30 days 0.0458%
related parties
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52

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

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

Nature of Intercompany transactions
No. Name of company Name of counter- relationship Percentage of the
(Note1) party Account name Amount Trading terms consolidated net revenue
(Note 2) or total assets
0 Feng Tay Enterprises Suzhou Yufeng 1 Sales revenue 167,053 Note 3 0.2660%
Co., Ltd. Plastics Technology
Co., Ltd.
〞 〞 〞 〞 Accounts receivable due 34,496 15 days 0.0672%
from related parties
〞 〞 Dona Pacific 〞 Sales revenue 1,224,423 Note 3 1.9496%
(Vietnam) Co., Ltd.
〞 〞 〞 〞 Cost of sales 5,095,850 Note 3 8.1141%
〞 〞 〞 〞 Accounts receivable due 158,761 30 days 0.3091%
from related parties
〞 〞 〞 〞 Accounts payable to 337,282 15 days 0.6566%
related parties
〞 〞 Vietnam Dona Orient 〞 Sales revenue 1,882,513 Note 3 2.9975%
Co., Ltd.
〞 〞 〞 〞 Cost of sales 4,462,338 Note 3 7.1053%
〞 〞 〞 〞 Technical service 107,120 註四 0.1706%
revenue
〞 〞 〞 〞 Accounts receivable due 280,785 30 days 0.5466%
from related parties
〞 〞 〞 〞 Accounts payable to 432,327 30 days 0.8417%
related parties
〞 〞 Dona Victor 〞 Sales revenue 935,607 Note 3 1.4898%
Footwear Co., Ltd.
〞 〞 〞 〞 Cost of sales 5,292,671 Note 3 8.4275%
〞 〞 〞 〞 Accounts receivable due 64,861 30 days 0.1263%
from related parties
〞 〞 〞 〞 Accounts payable to 588,124 30 days 1.1450%
related parties
〞 〞 Vietnam Dona 〞 Sales revenue 3,154,696 Note 3 5.0232%
Standard Footwear
Co., Ltd.
〞 〞 〞 〞 Cost of sales 12,573,064 Note 3 20.0200%
〞 〞 〞 〞 Accounts receivable due 94,361 15 days 0.1837%
from related parties
〞 〞 〞 〞 Accounts payable to 1,240,252 30 days 2.4146%
related parties
〞 〞 Vung Tau Orient 〞 Sales revenue 935,528 Note 3 1.4896%
Co., Ltd.
〞 〞 〞 〞 Cost of sales 2,462,856 Note 3 3.9216%
〞 〞 〞 〞 Accounts receivable due 495,875 120 days 0.9654%
from related parties
〞 〞 〞 〞 Accounts payable to 157,789 10 days 0.3072%
related parties
〞 〞 Vietnam Nam Ha 〞 Sales revenue 311,611 Note 3 0.4962%
Footwear Company
Limited
〞 〞 〞 〞 Cost of sales 1,068,277 Note 3 1.7010%
〞 〞 〞 〞 Accounts receivable due 188,736 90 days 0.3674%
from related parties
〞 〞 〞 〞 Accounts payable to 94,856 10 days 0.1847%
related parties
1 Great Eastern Fujian Xiefeng 3 Sales revenue 134,027 Note 3 0.2134%
Industries Limited. Footwear Company
Limited
2 Fujian Xiefeng Fujian Lifeng 3 Sales revenue 195,842 Note 3 0.3118%
Footwear Company Footwear Industrial
Limited Development
Company Limited
〞 〞 〞 〞 Accounts receivable due 13,094 15~20 days 0.0255%
from related parties
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53

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

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

Nature of Intercompany transactions
No. Name of company Name of counter- relationship Percentage of the
(Note1) party Account name Amount Trading terms consolidated net revenue
(Note 2) or total assets
2 Fujian Xiefeng Fujian San Feng 3 Sales revenue 132,429 Note 3 0.2109%
Footwear Company Footwear
Limited Company Limited
〞 〞 〞 〞 Accounts receivable due 3,517 15~20 days 0.0068%
from related parties
3 Fujian Putian Xie Fujian Lifeng 3 Sales revenue 108,368 Note 3 0.1726%
Feng Mold Footwear Industrial
Company Limited Development
Company Limited
〞 〞 〞 〞 Accounts receivable due 2,846 10~15 days 0.0055%
from related parties
〞 〞 Fujian Great Hope 〞 Sales revenue 105,828 Note 3 0.1685%
Footwear
Company Limited
〞 〞 〞 〞 Accounts receivable due 24,240 10~60 days 0.0472%
from related parties
〞 〞 Fujian San Feng 〞 Sales revenue 113,343 Note 3 0.1805%
Footwear
Company Limited
〞 〞 〞 〞 Accounts receivable due 1,617 10~15 days 0.0031%
from related parties
4 Dona Pacific Vietnam Dona Orient 3 Sales revenue 142,331 Note 3 0.2266%
(Vietnam) Co., Ltd. Co., Ltd.
〞 〞 〞 〞 Accounts receivable due 14,654 60 days 0.0285%
from related parties
〞 〞 Vietnam Dona 〞 Sales revenue 108,299 Note 3 0.1724%
Standard Footwear
Co.,
〞 〞 〞 〞 Accounts receivable due 10,046 60 days 0.0196%
from related parties
〞 〞 Dona Victor 〞 Sales revenue 109,608 Note 3 0.1745%
Footwear Co., Ltd.
〞 〞 〞 〞 Accounts receivable due 14,117 60 days 0.0275%
from related parties
5 Dona Victor Molds Dona Victor 3 Sales revenue 159,124 Note 3 0.2534%
Mfg. Co., Ltd. Footwear Co., Ltd.
〞 〞 〞 〞 Accounts receivable due 18,245 60 days 0.0355%
from related parties
〞 〞 Vietnam Dona Orient 〞 Sales revenue 106,872 Note 3 0.1702%
Co., Ltd.
〞 〞 〞 〞 Accounts receivable due 10,299 60 days 0.0201%
from related parties
〞 〞 Vietnam Dona 〞 Sales revenue 200,751 Note 3 0.3197%
Standard Footwear
Co., Ltd.
〞 〞 〞 〞 Accounts receivable due 28,897 60 days 0.0563%
from related parties
6 Vietnam Dona Vietnam Dona Orient 3 Sales revenue 100,160 Note 3 0.1595%
Standard Footwear Co., Ltd.
Co.
〞 〞 〞 〞 Accounts receivable due 11,357 60 days 0.0221%
from related parties
----- End of picture text -----

Note 1: The numbers filled in as follows:

  1. 0 represents the parent company.

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

Note 2: Transactions labeled as follows:

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

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

  3. represents transactions between subsidiaries.

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

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

54

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

(b) Information on investment

The following is the information on investment for the nine months ended September 30, 2025 (excluding information on investment in Mainland China):

(In Thousands of New Taiwan Dollar)

==> picture [518 x 574] intentionally omitted <==

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

Original investment
Name of Main businesses amount Balance as of September 30, 2025 Net income Share of Note
investor Name of investee Location and products September December Shares Percentage Carrying (losses) of investee profits/losses of investee (Note 6)
30, 2025 31, 2024 of ownership value
Feng Tay PT Feng Tay Indonesia Manufacturing of 1,324,722 1,324,722 53,999 99.99% 878,824 (189,424) (189,420) Subsidiary
Enterprises Indonesia athletic shoes, casual
Co., Ltd. Enterprises shoes, semi-finished (Note 5)
footwear and
footwear accessories
〞 PT Rich Valley 〞 Manufacturing of 1,063,389 1,063,389 519,990 99.99% 1,094,088 (3,131) (3,131) 〞
Indonesia athletic shoes, casual
shoes, semi-finished
footwear and
footwear accessories
〞 Growth-Link Bermuda Investment holding 5,521,531 5,521,531 6,000,000 100.00% 15,722,623 2,104,362 2,104,362 〞
Overseas
Company Limited
〞 VX Holdings British Investment holding 446,117 446,117 38,280 47.26% 764,426 257,765 121,820 〞
Limited Virgin
Islands
〞 Shoe Majesty Co., 〞 Investment holding 203,466 203,466 6,120 20.40% 559,719 319,311 65,139 Investee
Ltd. under the
equity
method
〞 Dona Orient 〞 Investment holding 1,529,928 1,529,928 44,753 40.97% 3,886,948 1,163,459 476,669 Subsidiary
Holdings Limited
(Note 5)
〞 Great Eastern Hong International trade 30,358 30,358 1,000 100.00% 33,308 2,847 2,847 〞
Industries Limited Kong services
〞 Great South Singapore Investment holding 37,946 37,946 1,700 100.00% 17,229 863 863 〞
Private Limited
〞 India Tindivandam India Manufacturing of 2,064,338 1,748,180 548,804,047 96.49% 1,285,492 (237,626) (228,939) 〞
Footwear Private athletic shoes, semi-
Limited finished footwear
and footwear
accessories
Growth-Link VX Mold British Investment holding 15,222 15,222 372,000 93.00% 241,453 144,923 134,778 Subsidiary
Overseas Company Limited Virgin
Company Islands (Note 5)
Limited
〞 VX Holdings 〞 Investment holding 288,989 288,989 36,342 44.87% 742,575 257,765 115,650 Investee
Limited under the
equity
method
(Note 5)
〞 Dona Pacific 〞 Investment holding 379,153 379,153 23,000 92.00% 1,516,050 313,488 288,409 Subsidiary
Holdings Limited
(Note 5)
〞 Shoe Majesty Co., 〞 Investment holding 244,537 244,537 8,580 28.60% 816,918 319,311 91,323 Investee
Ltd. under the
equity
method
〞 Dona Orient 〞 Investment holding 2,001,438 2,001,438 64,483 59.03% 5,875,610 1,163,459 686,790 Subsidiary
Holdings Limited
(Note 5)
〞 Lotus Footwear Singapore Investment holding 2,068,076 2,068,076 34,020 88.00% 3,904,760 377,638 332,322 〞
Enterprises Private (Note 8) business, and
Limited manufacturing and
selling of finished
shoes
〞 PT Rich Valley Indonesia Manufacturing of 22 22 10 0.01% 21 (3,131) - Investee
Indonesia athletic shoes, casual under the
shoes, semi-finished equity
footwear and method
footwear accessories (Note 5)
----- End of picture text -----

55

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

==> picture [518 x 573] intentionally omitted <==

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

Original investment
Name of Main businesses amount Balance as of September 30, 2025 Net income Share of Note
investor Name of investee Location and products September December Shares Percentage Carrying (losses) of investee profits/losses of investee (Note 6)
30, 2025 31, 2024 of ownership value
Growth-Link PT Feng Tay Indonesia Manufacturing of 21 21 1 0.01% 17 (189,424) (4) Investee
Overseas Indonesia athletic shoes, casual under the
Company Enterprises shoes, semi-finished equity
Limited footwear and method
footwear accessories (Note 5)
〞 Cheyyar SEZ India Development in - - 1 0.01% - 18,885 - 〞
Developers Private India’s Industrial
Ltd. Park
VX Holdings Dona Victor Vietnam Manufacturing of 1,002,555 1,002,555 Note 4 100.00% 1,653,575 258,443 258,443 [Subsidiary]
Limited Footwear Co., Ltd. athletic shoes, semi- (Note 5)
finished footwear,
and footwear
accessories
Shoe Majesty Hong Kong Shoe Hong International trade 6,079 6,079 200 100.00% 119,141 32,859 32,859 Subsidiary
Co., Ltd. Majesty Trading Kong services
Company Limited
〞 Vietnam Shoe Vietnam Manufacturing 1,124,615 1,124,615 Note 4 100.00% 2,617,006 294,576 294,576 〞
Majesty Co., Ltd. footwear products
〞 PT Shoe Majesty Indonesia Manufacturing 56,231 - 2,999 99.97% 54,859 (1,387) (1,387) 〞
Indonesia footwear products
Dona Orient Vietnam Dona Vietnam Manufacturing of 1,337,380 1,337,380 Note 4 100.00% 2,472,568 569,684 569,684 [Subsidiary]
Holdings Orient Co., Ltd. athletic shoes, semi- (Note 5)
Limited finished footwear,
and footwear
accessories
〞 Vietnam Dona 〞 Manufacturing of 2,300,902 2,300,902 〞 100.00% 5,124,312 626,030 626,030 〞
Standard Footwear athletic shoes, semi-
Co., Ltd. finished footwear,
and footwear
accessories
〞 Vung Tau Orient 〞 Producing golf balls, 1,101,005 1,101,005 〞 100.00% 1,051,340 66,976 66,976 〞
Co., Ltd. soccer balls, and
backpack, bags
〞 Vietnam Nam Ha 〞 Manufacturing of 1,884,490 1,884,490 〞 100.00% 1,303,177 (98,522) (98,522) 〞
Footwear athletic shoes, semi-
Company Limited finished footwear,
and footwear
accessories
VX Mold Dona Victor Vietnam Manufacturing and 94,225 94,225 Note 4 100.00% 257,571 145,485 145,485 [Subsidiary]
Company Molds Mfg. Co., repair of molds, (Note 5)
Limited Ltd. cutting dies, and
processing of metal
parts
Dona Pacific Dona Pacific Vietnam Manufacturing of 607,900 607,900 Note 4 100.00% 1,647,297 314,060 314,060 [Subsidiary]
Holdings (Vietnam) Co., athletic shoes, semi- (Note 5)
Limited Ltd. finished footwear,
and footwear
accessories
Lotus Cheyyar SEZ India Development in 3,644,165 3,644,165 117,999,999 99.99% 2,752,084 18,885 18,885 [Subsidiary]
Footwear Developers Private India’s Industrial (Note 5)
Enterprises Limited Park
Private
Limited
〞 East Wind British Investment holding 477,064 497,591 9,751 100.00% 903,408 147,478 147,478 〞
Footwear Virgin and production of
Company Limited Islands athletic shoes
〞 Fairway 〞 Investment holding 1,316,851 1,391,888 29,501 100.00% 1,472,469 159,490 159,490 〞
Enterprises and production of
Company Limited athletic shoes
----- End of picture text -----

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 September 30, 2025, reviewed by certified public accountants, except that some of the investees were presented based on the unreviewed financial statements as of September 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.

56

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

(c) Information on investment in mainland China

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

==> picture [513 x 415] intentionally omitted <==

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

(In Thousands of New Taiwan Dollar)
Accumulated Accumulated
Accumulated
Total outflow of Investment flows outflow of Net income Investment
remittance of
Name of investee Main businesses and products amount of capital investmentMethod of investment from investment from (losses) of the Percentage of income (losses) Book value(Note 7) earnings in current
surplus Taiwan as of Outflow Inflow Taiwan as of investee ownership (Note 3 period
(Note 7) January 1, 2025 September 30, (Note 8) and 8)
(Note 8)
(Note 7) 2025 (Note 7)
Fujian Wu Feng Wholesale and retail 136,778 Note 1 166,551 - - 166,551 148,739 50.00% 74,370 99,668 105,326
Department of general
Store Co., Ltd. merchandise, and
related services.
〞
Fujian Putian Manufacturing and 91,185 145,996 - - 145,996 79,918 50.34% 40,227 154,040 1,356,620
Xie Feng Mold repair of molds,
Company cutting dies, shoe
Limited lasts, injections, and
processing of metal
parts.
〞
Fujian Xiefeng Producing athletic 455,925 172,408 - - 172,408 186,217 77.50% 144,318 784,826 1,137,099
Footwear shoes, semi-finished
Company footwear, and
Limited footwear accessories.
〞
Fujian San Feng Producing athletic 455,925 275,857 - - 275,857 37,713 68.00% 25,645 426,985 1,099,537
Footwear shoes, semi-finished
Company footwear, and
Limited footwear accessories.
〞
Fujian Da Feng Investment holding. 820,665 851,404 - - 851,404 381,848 70.00% 267,294 1,836,760 6,884,155
Holdings
Company
Limited
〞
Fujian Great Production of athletic 241,640 406,822 - - 406,822 75,406 84.73% 63,895 400,391 764,082
Hope Footwear shoes, casual shoes,
Company semi-finished
Limited footwear, footwear
accessories,
protective gear, and
other supporting
products.
Fujian Lifeng Producing athletic 455,925 Note 2 - - - - 110,428 70.00% 77,300 516,760 -
Footwear shoes, semi-finished
Industrial footwear, and
Development footwear accessories.
Company
Limited
Suzhou Yufeng Manufacturing and 77,894 〞 - - - - 54,956 66.07% 36,307 173,927 -
Plastics processing of plastic
Technology Co.,products.
Ltd.
----- End of picture text -----

ii. Upper limit on investment in Mainland China

Accumulated Investment in Mainland
China as of September 30, 2025
(Note 4 and 7)		 Investment Amounts Authorized by
Investment Commission, MOEA
(Note 5 and 7)		 Upper Limit on Investment
(Note 6)
2,019,038 2,752,345 15,178,288

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 nine months ended September 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 30.395 on September 30, 2025.

Note 8: Calculated based on the average closing exchange rate of 31.1511 between January and the end of September 2025.

57

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

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:

For the three months ended
September 30, 2025		 Department of
manufacturing
and selling shoes
$ 20,688,629
23,324,100
$
44,012,729
$
2,552,824
Department of
manufacturing
and selling shoes
$ 21,736,686
23,158,069
$
44,894,755
$
2,048,753		 Other
Departments
991,356
1,309,737
2,301,093
205,615
Other
Departments
982,366
1,735,828
2,718,194
(19,209)		 Reconciliation
and elimination
-
(24,633,837)
(24,633,837)
(48,777)
Reconciliation
and elimination
-
(24,893,897)
(24,893,897)
(27,680)		 Total
21,679,985
-
Revenue
Revenue from external customers
Intersegment revenues
Total revenue
Reportable segment profit or loss
For the three months ended
September 30, 2024
21,679,985
2,709,662
Total
22,719,052
-
Revenue
Revenue from external customers
Intersegment revenues
Total revenue
**Reportable segment profit or loss **
22,719,052
2,001,864

58

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

Department of

For the nine months ended
September 30, 2025		 manufacturing
and selling shoes
$ 59,621,229
69,700,132
$
129,321,361
$
5,776,933		 Other
Departments
3,181,297
3,753,906
6,935,203
304,257		 Reconciliation
and elimination
-
(73,454,038)
(73,454,038)
(115,744)		 Total
62,802,526
-
Revenue
Revenue from external customers
Intersegment revenues
Total revenue
**Reportable segment profit or loss **
62,802,526
5,965,446
For the nine months ended
September 30, 2024		 Department of
manufacturing
and selling shoes
$ 62,546,275
71,395,654
$
133,941,929
$
6,282,052		 Other
Departments
3,055,924
3,631,688
6,687,612
(25,220)		 Reconciliation
and elimination
-
(75,027,342)
(75,027,342)
(10,225)		 Total
65,602,199
-
Revenue
Revenue from external customers
Intersegment revenues
Total revenue
Reportable segment profit or loss
65,602,199
6,246,607

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