FORMOSA TAFFETA CO., LTD.

2026 ANNUAL SHAREHOLDERS' MEETING

MEETING HANDBOOK

(This English translation is prepared in compliance with the Chinese version and is for reference purposes only. If there are any inconsistency between the Chinese original and this translation, the Chinese version shall prevail.)

JUNE 26, 2026

Meeting Procedure...1
Meeting Agenda...2
Report Items...3
Ratification Items...12
Election Items...14
Discussion Items...21
Appendix...38

Independent Auditor’s Report
Articles of Incorporation of the Company
Rules of Procedure for Shareholders’ Meeting of the Company
Rules for Election of Directors of the Company
Current Shareholdings of Directors of the Company
Information regarding the Proposed Employees’ and Directors’ Compensation approved by the Board of Directors of the Company
Effect upon Business Performance and Earnings per Share of the Company by the Stock Dividend Distribution Proposed at the 2025 Annual Shareholders’ Meeting

FORMOSA TAFFETA CO., LTD.

2026 ANNUAL SHAREHOLDERS' MEETING PROCEDURE

I. Call Meeting to Order
II. Chairman’s Speech
III. Report Items
IV. Ratification Items
V. Election Items
VI. Discussion Items
VII. Extraordinary Motions
VIII. Meeting Adjourned

FORMOSA TAFFETA CO., LTD.
2026 ANNUAL SHAREHOLDERS’ MEETING AGENDA

Time: 10:00 a.m., Friday, June 26 2026

Venue: No. 380, Sec. 6, Nanjing E. Rd., Taipei City, Taiwan.

Method of convening shareholders meeting: Physical Shareholders Meeting

I. Report Items
1. 2025 Business Report
2. Audit Committee’s Review Report on the Company’s 2025 Financial Statements
3. Report on 2025 Compensation of Employees and Directors
4. Report of the Distribution of Cash Dividends for 2025

II. Ratification Items
1. 2025 Business Report and Financial Statements
2. Proposal for Distribution of 2025 Earnings

III. Election Items
The Company’s Directors have their tenure nearly expired. Please elect the Board of Directors to conform to the applicable laws.

IV. Discussion Items
1. Appropriateness of releasing the newly elected Directors from non-competition restrictions. Please discuss and resolve..

Report Items

The business status of fiscal year 2025, referred to the Business Report (on page 4 of this Handbook.)
The Company’s Audit Committee members reviewed the 2025 Business Report and Financial Statements and issued their Review Report (on page 11 of this Handbook) according to the applicable laws.
Report on 2025 Compensation of Employees and Directors:

The pre-tax profit prior to deducting employees’ compensation and directors’ compensation is NT$ 945,785,758 with no accumulated loss. 0.2% of that profit, NT$ 1,891,572 is allocated as employees’ compensation, of which 0.198% of the above-mentioned pre-tax profit was appropriated as remuneration for non-executive employees, with the appropriation amount totaling NT$1,870,765, and another 0.1%, NT$ 945,786 as directors’ compensation in accordance with Article 30 of Articles of Incorporation. The total amount of the aforementioned employees’ and directors’ compensation is NT$ 2,837,358 all of which is to be distributed in cash.

Report of the Distribution of Cash Dividends for 2025:

In accordance with Article 31 of the Articles of Incorporation of the Company, the Board of Directors approved to distribute cash dividends for a total of NT$ 842,332,319 on March 10, 2026, which was NT$ 0.5 per share approximately. The record date for distribution of cash dividends will be approved by the Board of Directors.

Formosa Taffeta Co., Ltd.
2025 Annual Business Report

2025 Business Status

The Company’s consolidated revenue for 2025 amounted to NT$27,543.79 million, a decrease of NT$1,171.92 million, or 4.08%, compared to NT$28,715.71 million in 2024. The Company’s consolidated pre-tax profit for 2025 was NT$1,061.82 million, a decrease of NT$591.75 million, or 35.79%, compared to NT$1,653.57 million in 2024.

2025 Operating Status

Looking back at 2025, amid multiple challenges including U.S. tariff policies, exchange rate fluctuations, and geopolitical conflicts, end-market demand remained cautious. Economic conditions exhibited volatility amid heightened inflationary pressures. In response to exchange rate fluctuations and rising labor and energy costs, the Company continued to pursue integration initiatives, advancing refined production and cost-control measures.

In the face of external competitive pressures and economic uncertainty, the Company adjusted its product portfolio in a timely manner to capture global demand for low-carbon textile products. By utilizing recycled and environmentally friendly raw materials and introducing advanced processing technologies, the Company has developed high value-added, eco-friendly functional products. At the same time, leveraging its global footprint to mitigate regional risks, the Company flexibly allocated capacity across its three regions and five plants, strengthened strategic partnerships with brand customers, reinforced its supply chain, enhanced its sustainable development competitiveness, and maintained customer satisfaction and long-term relationships, thereby establishing a development model characterized by both environmental and economic resilience.

2026 Business Plan and Outlook

Business plans and outlooks for 2026 regarding the seven major product categories are as follows:

(1) Functional synthetic woven fabrics:

The Company's functional synthetic woven fabrics end markets primarily cover four categories: sportswear, outdoor performance, casual fashion apparel, and umbrellas. In 2025, under the combined impact of inflationary pressures and tariff uncertainties, brand customers remained cautious. In response to rapidly changing market conditions, the Company effectively leveraged resources across its Taiwan and overseas plants, actively maintained customer relationships, and continued to develop new customers. At the same time, the Company advanced the development of high-value, differentiated, and green products, optimized production processes, and enhanced value-added services.

The Company partnered with the Taiwan Textile Research Institute (TTRI) to develop a globally unique polyamide-based nanofiber electrospinning membrane, which can be applied to high-performance waterproof, breathable, and moisture-wicking fabrics. This innovative eSMORE-TEXTM fabric was showcased at the TITAS exhibition. A production line for polyamide nanofiber waterproof, breathable, and moisture-wicking membranes has been established at the Company’s Taiwan facility. The introduction of this technology will further enhance the Company’s competitive advantages and industry influence. In addition, this polyester-based fabric enables true “Textile-to-Textile” recycling (T2T). The Company has also expanded GORE production capacity in Vietnam to strengthen its overall supply chain.

Looking ahead to 2026, supported by strong technical capabilities in high-end functional products and long-standing relationships with major sports and outdoor brand customers, the Company will continue to position Taiwan as its operational hub. Under its global strategy of localized supply, the Company will deepen integrated collaboration across its three regions and five plants, strengthen cross-regional capacity integration and operational resilience, actively pursue brand orders, and allocate capacity across regions based on customer needs to ensure stable lead times, consistent quality, and overall cost efficiency. The

Company will also continue to advance digital transformation and optimize its supply chain, actively expanding into new customers and markets, while further strengthening applications across the three major end markets of sportswear, outdoor performance, and casual fashion apparel, thereby enhancing overall market competitiveness. Additionally, we will leverage big data analytics and automation equipment to continuously optimize equipment, processes, and quality management, improving first-pass dyeing success rates, production efficiency, and quality stability. At the same time, we will collaborate with garment supply chain partners to promote the application of recycled materials, continuously develop sustainable and eco-friendly products and processes. The Company will fully commit to achieving the business goals set for 2025.

(2) Tire cord fabric:

Looking back at 2025, the high inventory levels in tire cord fabrics have been resolved. Sales of high-value single-ply cord fabrics increased year-over-year, and demand for polyamide 6 eco-friendly single-ply cord fabrics grew steadily on a quarterly basis. The Company actively integrated tire cord production capacity, increased the production of high value-added products such as bicycle tire cord fabrics and anti-abrasion fabrics, and expanded adoption among brand customers. By effectively leveraging resources between its Taiwan and Vietnam plants, the Company reduced costs and maximized operational efficiency.

Looking ahead to 2026, the tire cord business will focus on differentiated and high value-added product positioning. With production line integration successfully completed, operational momentum is expected to gradually materialize. Leveraging polyamide, fine denier yarns, and ocean-recycled fibers as key raw materials, the Company will promote sustainable high-value applications and expand penetration into high-end and niche markets. The Company will continue to focus on applications of nylon-based materials, increasing the share of products such as anti-abrasion and puncture-resistant fabrics, targeting the

two-wheeler market – including motorcycles and bicycles – to drive overall growth in the tire cord business.

(3) Functional Yarn:

Looking back at 2025, demand declined throughout the year due to the appreciation of the New Taiwan dollar and the impact of reciprocal tariffs in the second quarter. As a result, revenue from the functional yarn segment decreased by 7.3% compared to 2024. In response to rapidly changing external conditions, the Company flexibly adjusted equipment to accommodate different product mixes, while strictly controlling production costs. At the same time, the Company actively pursued government project subsidies to maintain stable growth in overall performance.

Looking ahead to 2026, the Company will focus on developing niche products, further optimizing its product portfolio, and securing continued support from government technology programs to develop new differentiated products. The Company will also actively participate in major global textile exhibitions to enhance market visibility and effectively expand the market share of functional yarn products, thereby improving profitability.

(4) Special Fabrics:

Looking back at 2025, the Company’s special fabrics segment was impacted in the Southeast Asian market, with both sales volume and pricing falling short of expectations due to low-priced competition from China and India in the fire-resistant fabric market. In addition, demand in the medical fabric market declined significantly as low-priced competitors from China captured market share. Meanwhile, demand from Middle Eastern refineries for fire-resistant oilfield workwear continued to grow steadily.

Looking ahead to 2026, with market demand diversifying and rapidly changing, the Company actively respond to customer needs and market trends, focusing on expanding the Middle Eastern refinery market for oilfield workwear and military/police uniforms, which is expected to continue growing. Additionally, the Company

fully strive to secure orders for military and flight suit fabrics from the United States and explore the potential applications of electrostatic fabrics in the environmentally-friendly, antimicrobial, and highly breathable medical fabric markets, further deepening market expansion. To enhance its competitive advantage, the Company will engage in strategic collaborations with raw material suppliers, aiming to reduce production costs while maintaining a market-leading position. The Company is committed to achieving its operational performance goals for 2026 and driving the continued growth of its special fabrics business.

(5) Carbon-Fiber Composite Material:

Looking back at 2025, the bicycle and sports equipment industries continued to digest excess inventory accumulated during the pandemic, with demand expected to return to normal levels by the third quarter of 2026. The Company successfully developed high-value materials for robotic arms in Japan and bicycle handlebar applications, driving an increase in related orders. At the same time, orders from applications such as marine vessels, cooling tower blades, and export-oriented surfboards grew steadily, supporting an increase in overall shipment volume, with sales rising by 2% compared to 2024.

Looking ahead to 2026, the Company will actively develop diversified carbon fiber fabric products to meet varying customer needs, focusing on expanding applications in the fields of construction and structural reinforcement for equipment. The demand for carbon fiber woven fabrics is expected to continue growing. The Company also actively expanded into new application areas, including footwear materials, unmanned vessels, remote-controlled equipment, and medical components, while extending into the rapidly growing drone segment to enhance overall product competitiveness. In addition, multi-axis fabric products supported by DNV certification for four-axis carbon fiber fabrics will be further developed for applications in the maritime sector. In collaboration with raw material suppliers, the Company

will also pursue opportunities in lower-tier wheel rim materials. Going forward, the Company will continue to align with customer needs, strengthen product development and market applications, expand its export market share, and drive steady growth in overall performance.

(6) Gas Stations:

In 2025, Formosa Gas Stations operated 106 stations and has long focused on service, promotions, and management performance, making it one of the top five gas station networks in Taiwan. Looking back at 2025, although inflationary pressures and increased demand for new energy vehicles affected fuel sales volume, the Company maintained stable profitability.

Looking ahead to 2026, Formosa Gas Stations will continue to evaluate the operational performance of each station and the length of lease terms, strengthening station staff training, with a focus on public safety, high-quality service, and standardized management. In response to fluctuations in international oil prices, the Company strengthened tank inventory management and actively expanded its contract customer base to enhance profitability. At the same time, it will actively expand new stations and promote marketing campaigns in collaboration with the Formosa Petrochemical APP project. The Company will leverage its channel advantages and social media marketing to promote travel lifestyle products and automotive by-products, meeting customers' diverse and convenient needs.

4. Conclusion

Looking ahead to 2026, the global economic outlook and supply chain environment remain highly uncertain. Tariff policies, exchange rate fluctuations, and adjustments in market demand will continue to influence industry dynamics and operational performance. Building on a foundation of stable operations, the Company will continue to strengthen its cross-regional capacity integration capabilities and evaluate the establishment of new production bases in response to international market demand, thereby enhancing overall operational flexibility and resilience. At the same time, in a highly competitive

industry environment, the Company will remain vigilant and continue to reinforce its competitive advantages across key operational metrics, including speed, efficiency, quality, delivery, and cost, through lean management and ongoing improvement mechanisms. In terms of supply resilience, the Company will leverage flexible capacity allocation and a localized supply strategy to shorten lead times, enhance delivery reliability, and diversify operational risks, thereby mitigating the impact of external volatility on customer service, while continuing to increase the share of differentiated products.

The Company will deepen its partnerships with international brand customers while actively expanding collaboration with small and medium-sized brands. Through consistent quality, high value-added products, and responsive service, the Company aims to strengthen customer trust and actively develop new market momentum. It will also continue to advance the development of differentiated and high value-added products, including eSMORE-TEX™, high-performance tire cord fabrics, functional yarns, and carbon-fiber composite materials, to meet the diverse needs of sports, outdoor, industrial, and other applications. Through the integrated collaboration of its three regions and five plants, the Company will accelerate its product development capabilities and strengthen cross-regional capacity allocation to ensure stable lead times and the high-quality standards required by global customers.

Looking ahead, Formosa Taffeta will uphold its core principles of "sustainable management" and "steady growth," while continuing to strengthen and refine corporate governance and risk management. Together with global customers and strategic partners, the Company will expand its presence in advanced materials and green textiles, striving to become a globally competitive industry leader. By leveraging innovation and resilience, the Company aims to create long-term value for shareholders and set key milestones for the sustainable development of the industry.

Chairman: Wong, Wen-Yuan
President: Lee, Ming-Chang
In-charge Accountant: Lee, Shu-Ming

FORMOSA TAFFETA CO., LTD.

The Audit Committee’s Review Report

The Company’s 2025 Business Report, Financial Statements, including Consolidated and Parent Company Only ones, and Earnings Distribution Proposal have been prepared by the Board of Directors. An audit of the Financial Statements was conducted by the CPAs of PricewaterhouseCoopers Taiwan (PwC), and the audit reports were issued by PwC. The Audit Committee members of Formosa Taffeta Co., Ltd. reviewed the Business Report, Financial Statements, and Earnings Distribution Proposal and determined the information to be correct and accurate. According to the Securities and Exchange Act and the Company Act, we hereby submit this report. Please be advised accordingly.

Formosa Taffeta Co., Ltd.
Chairman of the Audit Committee:

Lin, Sheng-Chung

March 10, 2026

Ratification Items

Proposal 1

Proposal: To accept the 2025 business report and financial statements
Proposed by the Board of Directors

Explanation:

The preparation of the Company’s 2025 Consolidated and Parent Company Only Financial Statements were completed; the same were reviewed by the Audit Committee and approved by the Board of Directors on March 10, 2026 and audited by independent auditors, CPA Ms. Man-Yu Juanlu and CPA Hsu Seng-Chung, of PwC. The aforesaid Financial Statements together with the Business Report were reviewed by the Audit Committee, and the Audit Committee’s Review Report form is presented.
Please refer to page 4 through page 10 of this Handbook for the aforementioned Business Report, and page 23 through page 36 for the Financial Statements. Please approve the Business Report and the Financial Statements.

Resolution:

Ratification Items

Proposal 2

Proposal: To accept the proposal for distribution of 2025 earnings
Proposed by the Board of Directors

Explanation:

Please refer to page 37 of this Handbook for the 2025 Earnings Distribution Proposal, reviewed by the Audit Committee members of Formosa Taffeta Co., Ltd. and approved by the Board of Directors on March 10, 2026. Please approve the Earnings Distribution Proposal.

Resolution:

Election Items

Proposal: The Company’s Directors have their tenure nearly expired. Please elect the Board of Directors to conform to the applicable laws.

Proposed by the Board of Directors

Explanation:

The term of office of the Company’s current directors and supervisors, who were elected on June 16, 2023, will expire on June 15, 2026. To conform to the applicable rule, the company shall elect 9 directors (including 3 independent directors) through cumulative voting system. The term of office of the new Directors (including independent directors) shall be three years, starting from June 26, 2026 to June 25, 2029.
In accordance with Article 192-1 of the Company Act and Article 18 of the Articles of the Company’s Articles of Incorporation, the nomination system for candidates for the election of directors (including independent directors) of the Company shall be selected by the shareholders on the list of candidates and shall be held by the Company. The directors (including independent directors) jointly nominated by the shareholders who have issued more than 1% of the total number of the shares on April 28,2026 have 9 candidates. The names of the 6 Directors Candidates are listed below:

Name	Education	Experience	Existing shareholding
Wong, Wen-Yuan, (Representative of Formosa Chemicals & Fibre Corporation).	Master in Industrial Engineering, University of Houston
Bachelor in Chemical	Current Appointment:
Chairman of Formosa Taffeta Co., Ltd.
Chairman of Formosa Resources Corp.
Chairman of Nan Ya Plastics Corp., U.S.A	630,022,431

Name	Education	Experience
	Engineering, University of Houston	Chairman of Nan Ya Plastics Corp., America
Chairman of Nan Ya Plastics Corp., Texas
Chairman of Chang Gung University Chairman of Ming Chi University of Technology Chairman of Chang Gung University of Science and Technology
Chairman of Wang Jhan Yang Charitable Foundation Director of Formosa Plastics Corp. Director of Nan Ya Plastics Corp. Director of Formosa Chemicals & Fibre Corp. Director of Formosa Petrochemical Corp . Managing Director of Formosa Idemitsu Petrochemical Corp. Director of Nan Ya Technology Corp. Director of Nan Ya PCB Corp. Director of Formosa Sumco Technology Corp. Director of Formosa

Name	Education	Experience	Existing shareholding
		Advanced Technologies Co., Ltd. Director of Mai-liao Power Corp. Director of Formosa Heavy Industries Corp. Director of Formosa Plastics Transport Corp. Director of Formosa Ineos Chemicals Corp. Director of Formosa Ha Tinh Steel Co., Ltd. Director of Formosa Plastics Corp., U.S.A Director of Formosa Plastics Corp., America Director of Chang Gung Medical Foundation Director of Straits Exchange Foundation Head of Standing Member of Wang Jhan Ya ng Charitable Trust Fund
		Experiences: Chairman of Chinese National Federation of Industries Chairman of Taiwan Textile Federation, R.O.C. Chairman of Formosa Chemicals & Fibre Corp. President of

Name	Education	Experience	Existing shareholding
		Formosa Chemicals & Fibre Corp. Chairman of Formosa Advanced Technologies Co., Ltd. Chairman of Mai-liao Power Corp. President of Mai-liao Power Corp. Chairman of Formosa Idemitsu Petrochemical Corp. Chairman of Formosa Ineos Chemicals Corp. Chairman of Formosa Ha Tinh Steel Co., Ltd. Director of Formosa Plastics Marine Corp. Director of Industrial Technology Research Institute
Hong, Fu-Yuan, (Representative of Formosa Chemicals & Fibre Corporation)	Bachelor in Department of Chemical Engineering, Chung Yuan Christian University	Current Appointment: Chairman of Formosa Chemicals & Fibre Corp. Experiences: Vice Chairman of Formosa Chemicals & Fibre Corp.	630,022,431

Name	Education	Experience	Existing shareholding
Lee Ming-Chang, (Representative of Formosa Chemicals & Fibre Corporation)	Bachelor in Textile Engineering, Feng Chia University	Current Appointment: President of Formosa Taffeta Co., Ltd. Experiences: Executive Vice President of Formosa Taffeta Co., Ltd.	630,022,431
Lee, Chien-Kuan, (Representative of Formosa Chemicals & Fibre Corporation)	Bachelor in Public Administration, National Chung Hsing University	Current Appointment: Executive Vice President of Formosa Taffeta Co., Ltd. Experiences: Deputy Executive Vice President of Formosa Taffeta Co., Ltd.	630,022,431
Wu, Li-Jen, (Representative of Formosa Chemicals & Fibre Corporation)	Bachelor in Textile Engineering, Feng Chia University	Current Appointment: Vice President of Formosa Taffeta Co., Ltd. Experiences: Deputy Vice President of Formosa Taffeta Co., Ltd.	630,022,431
Hsieh, Ming-Der	Degree of Mechanical Engineering, Kuang Wu Industry Junior College	Current Appointment: —Chairman of Yu Yuan Enterprise CO., Ltd.—Chairman of Shun Chin Enterprise Co., Ltd. Experiences: —President of Yu Yuan Enterprise CO., Ltd.	15,583,818

3 independent director candidates, the list is as follows:

Name	Education	Experience	Existing shareholding
Lin, Sheng-Chung	Doctorate in Institute of Natural Resources Management, National Taipei University	Current Appointment: - Independent director of Taiwan Glass Industry Corp., and Century Iron and Steel Industrial Co., Ltd. - Consultant of Chinese National Association of Industry and Commerce, Taiwan. Experiences: - Director of CPC Corporation, Taiwan - Deputy Minister & Vice Minister of Ministry of Economic Affairs. - Director-General of Construction Bureau of Taipei City Government. - Permanent Representative of the Observer Delegation of ROC to the World Trade Organization.	0
Kuo, Nein-Hsiung	Master in Urban Planning, National Chung Hsing University	Current Appointment: Director of Taiwan Puritic Corp. Experiences: - Supervisor of Taiwan	0

Name	Education	Experience
		Innovation Development Corp.
- President of Taiwan Land Development Corp. and China Development Asset Management Corp.
- Deputy Director-General of Industrial Development Bureau, Ministry of Economic Affairs
- Chief Secretary & Section Chief of Construction and Planning Agency, Ministry of the Interior
Kuo Chia-Chi	Bachelor in Accounting, National Taiwan University	Current Appointment:
- CPA of Kuo Chia-Chi Accounting Firm,
- Independent director of Fine Blanking & Tool Co., Ltd.,
- Director of Zongtai Real Estate Development Co., Ltd.
Experiences:
Auditor of Chung Yang and Yi Hsing CPA firms	3,000

Resolution:

Discussion Items

Proposal 1

Proposal: Appropriateness of releasing the newly elected Directors from non-competition restrictions. Please discuss and resolve.

Proposed by the Board of Directors

Explanation:

According to Article 209 of the Company Act, any Director conducting business for himself/herself or on another’s behalf, and the scope of which coincides with the Company’s business scope, shall explain at the Shareholders’ Meeting the essential contents of such conduct and obtain approval from shareholders in the Meeting.
Meanwhile, according to Explanation Letter No.89206938 on Article 209 of the Company Act, announced by the Ministry of Economic Affairs dated April 24, 2000, where the juristic person shareholder's authorized representatives are elected as directors according to Article 27-2 of the Company Act, both the juristic person shareholder and the authorized representatives shall be subject to the non-competition restrictions under Article 209 of the Company Act.
The list of newly-elected Directors and the juristic person shareholder who appoints its authorized representatives to be elected as directors in annual Shareholders’ Meeting of 2026 as the same or similar duty in other companies within the scope of the Company's business is as follow. Based on the interest of the Company without impairment, it is proposed to release the Directors and juristic person shareholders which appoints its authorized representatives to be elected as directors after having assumed office from non-competition restrictions for approval following Article 209 of the Company Act.

Name	Positions In Other Company
Wong, Wen Yuan
Representative of Formosa Chemicals & Fibre Corporation	Managing Director of Formosa Chemical & Fibre Corp.
Managing Director of Formosa Petrochemical Corp.
Managing Director of Nan Ya Plastics Corporation.

Name	Positions In Other Company
Hong, Fu-Yuan, Representative of Formosa Chemicals & Fibre Corporation	Chairman of Formosa Chemical & Fibre Corp.
Director and President of Formosa Industries Corp.
Chairman and President of Formosa FCFC Carpet Coporation
Director of Schoeller Textil AG
Lee Ming-Chang, Representative of Formosa Chemicals & Fibre Corporation	Director of Formosa Industries Corp.
Director of Quang Viet Enterprise Co., Ltd.
Director of Schoeller Textil AG.
Lee Chien-Kuan, Representative of Formosa Chemicals & Fibre Corporation	Director of Schoeller Textil AG.
Hsieh Ming-Der	Chairman of Yu Yuan Enterprise CO., Ltd.
Chairman of Shun Chin Enterprise Co., Ltd.
Director of Great King Garment Co., Ltd.

Resolution:

FORMOSA TAFFETA CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
YEARS ENDED DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars, except for earnings per share amount)

	Items	Notes	Year ended December 31
			2025		2024
			AMOUNT	%	AMOUNT	%
4000	Sales revenue	6(18) and 7	$ 27,543,789	100	$ 28,715,705	100
5000	Operating costs	6(5)(22)(23) and 7	( 24,462,984)	( 89)	( 25,643,868)	( 89)
5900	Net operating margin		3,080,805	11	3,071,837	11
	Operating expenses	6(22)(23) and 7
6100	Selling expenses		( 1,622,842)	( 6)	( 1,693,721)	( 6)
6200	General and administrative expenses		( 728,252)	( 2)	( 717,535)	( 3)
6450	Impairment gain and reversal of impairment loss	12(2)
			12,000	-	-	-
6000	Total operating expenses		( 2,339,094)	( 8)	( 2,411,256)	( 9)
6900	Operating profit		741,711	3	660,581	2
	Non-operating income and expenses
7100	Interest income	6(19)	93,381	-	106,365	-
7010	Other income	6(20)	710,226	3	1,069,459	4
7020	Other gains and losses	6(21)	( 269,191)	( 1)	33,685	-
7050	Finance costs	6(24)	( 270,651)	( 1)	( 335,396)	( 1)
7060	Share of profit of associates and joint ventures accounted for using the equity method		56,347	-	118,873	1
7000	Total non-operating income and expenses		320,112	1	992,986	4
7900	Profit before income tax		1,061,823	4	1,653,567	6
7950	Income tax expense	6(25)	( 196,573)	( 1)	( 163,382)	( 1)
8200	Profit for the year		$ 865,250	3	$ 1,490,185	5

(Continued)

Items	Notes	Year ended December 31
		2025		2024
		AMOUNT	%	AMOUNT	%
Other comprehensive income	6(2)(17)
Components of other comprehensive income (loss) that will not be reclassified to profit or loss
8311 Actuarial gain (loss) on defined benefit plans		$ 71,992	-	($ 102,525)	-
8316 Unrealised gains (losses) from investments in equity instruments measured at fair value through other comprehensive income		6,016,224	22	( 17,826,971)	( 62)
8320 Share of other comprehensive income (loss) of associates and joint ventures accounted for using the equity method		420,936	2	( 472,036)	( 2)
8310 Other comprehensive income (loss) that will not be reclassified to profit or loss		6,509,152	24	( 18,401,532)	( 64)
Components of other comprehensive income (loss) that will be reclassified to profit or loss
8361 Financial statements translation differences of foreign operations		( 654,695)	( 2)	254,902	1
8370 Share of other comprehensive income of associates and joint ventures accounted for using the equity method		53,666	-	40,180	-
8360 Other comprehensive (loss) income that will be reclassified to profit or loss		( 601,029)	( 2)	295,082	1
8300 Total other comprehensive income (loss) for the year		$ 5,908,123	22	($ 18,106,450)	( 63)
8500 Total comprehensive income (loss) for the year		$ 6,773,373	25	($ 16,616,265)	( 58)
Profit attributable to:
8610 Owners of the parent		$ 865,250	3	$ 1,490,185	5
8620 Non-controlling interest		-	-	-	-
		$ 865,250	3	$ 1,490,185	5
Comprehensive income (loss) attributable to:
8710 Owners of the parent		$ 6,773,373	25	($ 16,616,265)	( 58)
8720 Non-controlling interest		-	-	-	-
		$ 6,773,373	25	($ 16,616,265)	( 58)
	Before Tax	After Tax	Before Tax	After Tax
---	---	---	---	---
Basic and diluted earnings per share (in dollars) 6(26)
Profit attributable to common shareholders of the parent	$ 0.56	$ 0.51	$ 0.92	$ 0.89
Assuming shares held by subsidiaries are not deemed as treasury stock:
Profit attributable to common shareholders of the parent	$ 0.56	$ 0.51	$ 0.92	$ 0.88

The accompanying notes are an integral part of these consolidated financial statements.

FORMOSA TAFFETA CO., LTD.
PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME
YEARS ENDED DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars, except for earnings per share amount)

	Items	Notes	Year ended December 31
			2025		2024
			AMOUNT	%	AMOUNT	%
4000	Sales revenue	6(15) and 7	$ 20,295,249	100	$ 21,302,810	100
5000	Operating costs	6(4)(19)(20) and 7	( 18,435,023)	( 91)	( 19,403,539)	( 91)
5900	Net operating margin		1,860,226	9	1,899,271	9
	Operating expenses	6(19)(20) and 7
6100	Selling expenses		( 1,298,218)	( 6)	( 1,352,692)	( 7)
6200	General and administrative expenses		( 528,513)	( 3)	( 494,800)	( 2)
6450	Impairment gain and reversal of impairment loss	12(2)
			12,000	-	-	-
6000	Total operating expenses		( 1,814,731)	( 9)	( 1,847,492)	( 9)
6900	Operating profit		45,495	-	51,779	-
	Total non-operating income and expenses
7100	Interest income	6(16)	57,465	1	72,340	-
7010	Other income	6(17)	660,758	3	1,028,607	5
7020	Other gains and losses	6(18)	( 224,994)	( 1)	103,980	1
7050	Finance costs	6(21)	( 175,789)	( 1)	( 193,577)	( 1)
7070	Share of profit of associates and joint ventures accounted for using the equity method	6(5)
			580,013	3	492,068	2
7000	Total non-operating income and expenses		897,453	5	1,503,418	7
7900	Profit before income tax		942,948	5	1,555,197	7
7950	Income tax expense	6(22)	( 77,698)	( 1)	( 65,012)	-
8200	Profit for the year		$ 865,250	4	$ 1,490,185	7

(Continued)

	Items	Notes	Year ended December 31
			2025		2024
			AMOUNT	%	AMOUNT	%
	Other comprehensive income (loss)	6(14)
	Components of other comprehensive income (loss) that will not be reclassified to profit or loss
8311	Actuarial gains (losses) on defined benefit plan	6(10)	$ 71,992	-	($ 102,525)	-
8316	Unrealized gain or loss on valuation of financial assets at fair value through other comprehensive income		6,016,224	30	( 17,826,971)	( 84)
8330	Share of other comprehensive income (loss) of associates and joint ventures accounted for using the equity method		420,936	2	( 472,036)	( 2)
8310	Other comprehensive income (loss) that will not be reclassified to profit or loss		6,509,152	32	( 18,401,532)	( 86)
	Components of other comprehensive (loss) income that will be reclassified to profit or loss
8361	Exchange differences on translation		( 654,695)	( 3)	254,902	1
8380	Share of other comprehensive income of associates and joint ventures accounted for using the equity method		53,666	-	40,180	-
8360	Other comprehensive (loss) income that will be reclassified to profit or loss		( 601,029)	( 3)	295,082	1
8300	Total other comprehensive income (loss) for the year		$ 5,908,123	29	($ 18,106,450)	( 85)
8500	Total comprehensive income (loss) for the year		$ 6,773,373	33	($ 16,616,265)	( 78)
			Before Tax	After Tax	Before Tax	After Tax
9750	Basic and diluted earnings per share	6(23)	$ 0.56	$ 0.51	$ 0.92	$ 0.89
	Assuming shares held by subsidiaries are not deemed as treasury stock:
	Basic and diluted earnings per share	6(23)	$ 0.56	$ 0.51	$ 0.92	$ 0.88

The accompanying notes are an integral part of these parent company only financial statements.

FORMOSA TAFFETA CO., LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)

	Assets	Notes	December 31, 2025		December 31, 2024
			AMOUNT	%	AMOUNT	%
Current assets
1100	Cash and cash equivalents	6(1)	$ 3,227,056	6	$ 3,524,678	7
1120	Current financial assets at fair value through other comprehensive income	6(2)	651,397	1	556,971	1
1136	Current financial assets at amortized cost	6(3)	235,007	-	255,807	-
1150	Notes receivable, net	6(4)	38,149	-	14,501	-
1160	Notes receivable - related parties	7	4,714	-	6,436	-
1170	Accounts receivable, net	6(4)	2,097,022	4	2,385,280	5
1180	Accounts receivable - related parties	7	223,277	-	222,199	-
1200	Other receivables	7	453,561	1	303,486	1
130X	Inventory	6(5)	7,112,249	13	7,577,337	14
1410	Prepayments		404,660	1	268,377	1
1470	Other current assets		158,616	-	175,283	-
11XX	Total current assets		14,605,708	26	15,290,355	29
Non-current assets
1517	Non-current financial assets at fair value through other comprehensive income	6(2)	21,401,377	37	15,479,579	30
1535	Non-current financial assets at amortised cost	6(1)(3) and 8	1,080,121	2	1,063,276	2
1550	Investments accounted for using the equity method	6(6)	8,636,516	15	8,479,947	16
1600	Property, plant and equipment	6(7) and 8	9,679,192	17	10,298,531	20
1755	Right-of-use assets	6(8)	1,055,220	2	1,113,173	2
1760	Investment property, net	6(9)	453,447	1	488,156	1
1840	Deferred income tax assets	6(25)	107,622	-	108,655	-
1900	Other non-current assets		119,160	-	40,427	-
15XX	Total non-current assets		42,532,655	74	37,071,744	71
1XXX	Total assets		$ 57,138,363	100	$ 52,362,099	100

(continued)

FORMOSA TAFFETA CO., LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity	Notes	December 31, 2025		December 31, 2024
		AMOUNT	%	AMOUNT	%
Current liabilities
2100	Short-term borrowings	6(10) and 8	$ 1,967,735	3	$ 2,218,043	4
2130	Current contract liabilities		10,890	-	-	-
2150	Notes payable		147,479	-	134,884	-
2160	Notes payable - related parties	7	46,691	-	37,407	-
2170	Accounts payable		939,360	2	887,102	2
2180	Accounts payable - related parties	7	664,825	1	936,982	2
2200	Other payables	6(11) and 7	1,035,178	2	1,087,024	2
2230	Current income tax liabilities		37,855	-	63,845	-
2280	Current lease liabilities		115,271	-	167,740	1
2399	Other current liabilities, others		364,871	1	431,375	1
21XX	Total current liabilities		5,330,155	9	5,964,402	12
Non-current liabilities
2540	Long-term borrowings	6(12)	8,200,000	15	8,200,000	16
2570	Deferred income tax liabilities	6(25)	369,179	1	340,190	1
2580	Non-current lease liabilities		764,633	1	751,378	1
2600	Other non-current liabilities		136,075	-	195,612	-
25XX	Total non-current liabilities		9,469,887	17	9,487,180	18
2XXX	Total liabilities		14,800,042	26	15,451,582	30
Equity attributable to owners of parent
	Share capital	6(14)
3110	Common stock		16,846,646	29	16,846,646	32
	Capital surplus	6(15)
3200	Capital surplus		955,115	2	952,952	2
	Retained earnings	6(16)
3310	Legal reserve		9,529,430	17	9,390,760	18
3320	Special reserve		3,322,683	6	2,214,578	4
3350	Unappropriated retained earnings		6,973,351	12	8,632,750	16
	Other equity interest	6(17)
3400	Other equity interest		4,730,160	8	( 1,108,105)	( 2)
3500	Treasury stocks	6(14)	( 19,064)	-	( 19,064)	-
31XX	Equity attributable to owners of the parent
			42,338,321	74	36,910,517	70
3XXX	Total equity		42,338,321	74	36,910,517	70
	Significant contingent liabilities and unrecognized contract commitments	9
	Significant event after the balance sheet 11 date
3X2X	Total liabilities and equity		$ 57,138,363	100	$ 52,362,099	100

The accompanying notes are an integral part of these consolidated financial statements.

FORMOSA TAFFETA CO., LTD.
PARENT COMPANY ONLY BALANCE SHEETS
DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)

	Assets	Notes	December 31, 2025		December 31, 2024
			AMOUNT	%	AMOUNT	%
Current assets
1100	Cash and cash equivalents	6(1)	$ 1,859,433	4	$ 2,173,727	5
1120	Current financial assets at fair value through other comprehensive income	6(2)	651,397	1	556,971	1
1150	Notes receivable, net	6(3)	38,149	-	14,501	-
1160	Notes receivable - related parties	7	4,714	-	6,436	-
1170	Accounts receivable, net	6(3)	1,362,195	3	1,389,714	3
1180	Accounts receivable - related parties	7	112,450	-	111,563	-
1200	Other receivables	7	228,772	-	201,210	1
130X	Inventories	6(4)	4,040,255	8	4,479,329	9
1410	Prepayments		71,395	-	51,540	-
1470	Other current assets		180,471	-	183,364	-
11XX	Total current assets		8,549,231	16	9,168,355	19
Non-current assets
1517	Non-current financial assets at fair value through other comprehensive income	6(2)	21,401,377	39	15,479,579	31
1535	Non-current financial assets at amortised cost	6(1) and 8	203,922	-	211,774	-
1550	Investments accounted for using the equity method	6(5)	17,773,645	33	17,770,037	36
1600	Property, plant and equipment	6(6) and 7	4,970,789	9	5,235,062	11
1755	Right-of-use assets	6(7)	812,039	2	850,994	2
1760	Investment property, net	7	374,735	1	404,145	1
1840	Deferred income tax assets	6(22)	107,622	-	108,655	-
1990	Other non-current assets		129,841	-	49,795	-
15XX	Total non-current assets		45,773,970	84	40,110,041	81
1XXX	Total assets		$ 54,323,201	100	$ 49,278,396	100

(Continued)

FORMOSA TAFFETA CO., LTD.
PARENT COMPANY ONLY BALANCE SHEETS
DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity	Notes	December 31, 2025		December 31, 2024
		AMOUNT	%	AMOUNT	%
Current liabilities
2100	Short-term borrowings	6(8)	$ -	-	$ 296	-
2150	Notes payable		116,764	-	112,620	-
2160	Notes payable - related parties	7	44,866	-	35,000	-
2170	Accounts payable		595,054	1	576,842	1
2180	Accounts payable - related parties	7	700,769	1	929,655	2
2200	Other payables	7	815,903	2	882,200	2
2230	Current income tax liabilities		11,255	-	24,831	-
2280	Current lease liabilities		113,453	-	165,997	-
2399	Other current liabilities		191,699	1	233,694	1
21XX	Total current liabilities		2,589,763	5	2,961,135	6
Non-current liabilities
2540	Long-term borrowings	6(9)	8,200,000	15	8,200,000	17
2570	Deferred income tax liabilities	6(22)	369,179	1	340,190	1
2580	Non-current lease liabilities		714,483	1	699,483	1
2670	Other non-current liabilities, others		111,455	-	167,071	-
25XX	Total non-current liabilities		9,395,117	17	9,406,744	19
2XXX	Total liabilities		11,984,880	22	12,367,879	25
Equity
	Share capital	6(11)
3110	Common stock		16,846,646	31	16,846,646	34
	Capital surplus	6(12)
3200	Capital surplus		955,115	2	952,952	2
	Retained earnings	6(13)
3310	Legal reserve		9,529,430	17	9,390,760	19
3320	Special reserve		3,322,683	6	2,214,578	4
3350	Unappropriated retained earnings		6,973,351	13	8,632,750	18
	Other equity interest	6(14)
3400	Other equity interest		4,730,160	9	( 1,108,105)	( 2)
3500	Treasury stocks		( 19,064)	-	( 19,064)	-
3XXX	Total equity		42,338,321	78	36,910,517	75
	Significant contingent liabilities and unrecognized contract commitments	9
	Significant event after the balance sheet 11 date
3X2X	Total liabilities and equity		$ 54,323,201	100	$ 49,278,396	100

The accompanying notes are an integral part of these parent company only financial statements.

FORMOSA TAFFETA CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
YEARS ENDED DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)

	Notes	Equity attributable to owners of the parent
		Retained Earnings				Other Equity Interest			Treasury stocks	Total equity
		Share capital - common stock	Capital surplus	Legal reserve	Special reserve	Unappropriated retained earnings	Financial statements translation differences of foreign operations	Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income
Year ended December 31, 2024		$ 16,846,644	$ 1,340,128	$ 9,318,811	$ 2,214,571	$ 7,756,011	($ 913,22)	$ 17,808,07	($ 19,06)	$ 54,351,971
Balance at January 1, 2024		-	-	-	-	1,490,185	-	-	-	1,490,185
Profit for the year		-	-	-	-	( 99,919 )	295,082	( 18,301,613 )	-	( 18,106,450 )
Other comprehensive income (loss)		-	-	-	-	1,390,266	295,082	( 18,301,613 )	-	( 16,616,265 )
Total comprehensive income (loss)		-	-	-	-	-	-	-	-	( 404,320 )
Cash dividends distributed from capital surplus	6(15)	-	( 404,320 )	-	-	-	-	-	-	-
Appropriations of 2023 earnings	6(16)
Legal reserve		-	-	71,947	-	( 71,947 )	-	-	-	-
Cash dividends		-	-	-	-	( 438,013 )	-	-	-	( 438,013 )
Adjustment of cash dividends paid to consolidated subsidiaries acquired	6(15)	-	1,097	-	-	-	-	-	-	1,097
Paid expired cash dividends transferred to capital surplus	6(15)	-	( 207 )	-	-	-	-	-	-	( 207 )
Expired cash dividends transferred to capital surplus	6(15)	-	4,718	-	-	-	-	-	-	4,718
Change in the net interest of associates recognized under the equity method	6(15)	-	11,535	-	-	( 3,571 )	-	3,571	-	11,535
Balance at December 31, 2024		$ 16,846,644	$ 952,951	$ 9,390,760	$ 2,214,571	$ 8,632,750	($ 618,13)	($ 489,96)	($ 19,06)	$ 36,910,511
Year ended December 31, 2025
Balance at January 1, 2025		$ 16,846,644	$ 952,951	$ 9,390,760	$ 2,214,571	$ 8,632,750	($ 618,13)	($ 489,96)	($ 19,06)	$ 36,910,511
Profit for the year		-	-	-	-	865,250	-	-	-	865,250
Other comprehensive income (loss)		-	-	-	-	69,858	( 601,029 )	6,439,294	-	5,908,123
Total comprehensive income (loss)		-	-	-	-	935,108	( 601,029 )	6,439,294	-	6,773,373
Appropriations of 2024 earnings	6(16)
Legal reserve		-	-	138,670	-	( 138,670 )	-	-	-	-
Special reserve		-	-	-	1,108,105	( 1,108,105 )	-	-	-	-
Cash dividends		-	-	-	-	( 1,347,732 )	-	-	-	( 1,347,732 )
Adjustment of cash dividends paid to consolidated subsidiaries acquired	6(15)	-	1,754	-	-	-	-	-	-	1,754
Paid expired cash dividends transferred to capital surplus	6(15)	-	( 539 )	-	-	-	-	-	-	( 539 )
Expired cash dividends transferred to capital surplus	6(15)	-	2,764	-	-	-	-	-	-	2,764
Change in the net interest of associates recognized under the equity method	6(15)	-	( 1,816 )	-	-	-	-	-	-	( 1,816 )
Balance at December 31, 2025		$ 16,846,644	$ 955,111	$ 9,529,430	$ 3,322,681	$ 6,973,35	($ 1,219,16)	$ 5,949,32	($ 19,06)	$ 42,338,32

The accompanying notes are an integral part of these consolidated financial statements.

FORMOSA TAFFETA CO., LTD.
PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY
YEARS ENDED DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)

	Share capital - Common stock	Capital Reserves					Retained Earnings			Other Equity Interest		Treasury shares	Total equity
		Capital surplus, treasury share transactions	Capital surplus, difference between consideration and carrying amount of subsidiaries acquired or disposed	Capital Surplus, changes in ownership interests in subsidiaries	Capital surplus, donated assets received	Capital surplus, changes in equity of associates and joint ventures accounted for using equity method	Capital surplus, others	Legal reserve	Special reserve	Unappropriated retained earnings	Exchange differences on translation of foreign financial statements
Year ended December 31, 2024
Balance at January 1, 2024	$ 16,846.64	$ 44.25	$ 980.94	$ 1.65	$ 2.03	$ 294.06	$ 17.17	$ 9,318.81	$ 2,214.57	$ 7,756.01	($ 913.22)	$ 17,808.07	($ 19.06)
Profit for the year	-	-	-	-	-	-	-	-	-	1,490.185	-	-	1,490.185
Other comprehensive income (loss)	-	-	-	-	-	-	-	-	-	( 99.919)	295.082	( 18,301.613)	-
Total comprehensive income (loss)	-	-	-	-	-	-	-	-	-	1,390.266	295.082	( 18,301.613)	-
Cash dividends distributed from capital surplus	-	-	( 404,320)	-	-	-	-	-	-	-	-	-	( 404,320)
Appropriations of 2023 earnings:
Legal reserve	-	-	-	-	-	-	-	71,947	-	( 71,947)	-	-	-
Cash dividends	-	-	-	-	-	-	-	-	-	( 438,013)	-	-	( 438,013)
Adjustment of cash dividends paid to consolidated subsidiaries acquired	-	1,097	-	-	-	-	-	-	-	-	-	-	1,097
Paid expired cash dividends transferred to capital surplus	-	-	-	-	-	-	( 207)	-	-	-	-	-	( 207)
Expired cash dividends transferred to capital surplus	-	-	-	-	-	-	4,718	-	-	-	-	-	4,718
Change in the net interest of associates recognized under the equity method	-	-	-	-	-	11,535	-	-	-	( 3,571)	-	3,571	11,535
Balance at December 31, 2024	$ 16,846.64	$ 45.35	$ 576.62	$ 1.65	$ 2.03	$ 305.60	$ 21.68	$ 9,390.76	$ 2,214.57	$ 8,632.75	($ 618.13)	($ 489.96)	($ 19.06)
Year ended December 31, 2025
Balance at January 1, 2025	$ 16,846.64	$ 45.35	$ 576.62	$ 1.65	$ 2.03	$ 305.60	$ 21.68	$ 9,390.76	$ 2,214.57	$ 8,632.75	($ 618.13)	($ 489.96)	($ 19.06)
Profit for the year	-	-	-	-	-	-	-	-	-	865.250	-	-	865.250
Other comprehensive income (loss)	-	-	-	-	-	-	-	-	-	69,858	( 601.029)	6,439.294	-
Total comprehensive income (loss)	-	-	-	-	-	-	-	-	-	935.108	( 601.029)	6,439.294	-
Appropriations of 2024 earnings:
Legal reserve	-	-	-	-	-	-	-	138,670	-	( 138,670)	-	-	-
Special reserve	-	-	-	-	-	-	-	-	1,108,105	( 1,108,105)	-	-	-
Cash dividends	-	-	-	-	-	-	-	-	-	( 1,347,732)	-	-	( 1,347,732)
Adjustment of cash dividends paid to consolidated subsidiaries acquired	-	1,754	-	-	-	-	-	-	-	-	-	-	1,754
Paid expired cash dividends transferred to capital surplus	-	-	-	-	-	-	( 539)	-	-	-	-	-	( 539)
Expired cash dividends transferred to capital surplus	-	-	-	-	-	-	2,764	-	-	-	-	-	2,764
Change in the net interest of associates recognized under the equity method	-	-	-	-	-	( 1,816)	-	-	-	-	-	-	( 1,816)
Balance at December 31, 2025	$ 16,846.64	$ 47.10	$ 576.62	$ 1.65	$ 2.03	$ 303.78	$ 23.91	$ 9,529.43	$ 3,322.68	$ 6,973.35	($ 1,219.16)	$ 5,949.32	($ 19.06)

The accompanying notes are an integral part of these parent company only financial statements.

FORMOSA TAFFETA CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)

	Notes	Year ended December 31
		2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax		$ 1,061,823	$ 1,653,567
Adjustments
Adjustments to reconcile profit (loss)
Depreciation	6(7)(8)(9)(22)	1,328,139	1,401,857
Reversal of provision for bad debt expense	12(2)	( 12,000 )	-
Interest expense	6(8)(24)	270,651	335,396
Interest income	6(19)	( 93,381 )	( 106,365 )
Dividend income	6(20)	( 315,091 )	( 765,285 )
Gain on valuation of financial liabilities	6(21)	-	( 479 )
Share of profit of associates and joint ventures	6(6)
accounted for using the equity method		( 56,347 )	( 118,873 )
Gain on disposal and scrap of property, plant and equipment	6(21)
Impairment gain and reversal of real estate impairment loss	6(21)	( 34,270 )	( 18,746 )
Changes in operating assets and liabilities
Changes in operating assets
Notes receivable, net		( 23,648 )	42,622
Notes receivable - related parties		1,722	( 506 )
Accounts receivable, net		300,713	( 333,530 )
Accounts receivable - related parties		( 1,078 )	( 57,049 )
Other receivables		( 150,466 )	( 72,274 )
Inventory		465,088	287,900
Prepayments		( 122,041 )	157,852
Other current assets		16,667	5,629
Changes in operating liabilities
Current contract liabilities		10,890	-
Notes payable		12,595	11,436
Notes payable - related parties		9,284	( 85,171 )
Accounts payable		52,258	197,772
Accounts payable - related parties		( 272,157 )	96,921
Other payables		( 848 )	59,240
Other current liabilities		( 66,504 )	63,666
Other non-current liabilities		( 52,998 )	( 1,225 )
Cash inflow generated from operations		2,329,001	2,677,039
Interest received		93,772	111,096
Cash dividends received		585,467	988,366
Interest paid		( 258,955 )	( 327,286 )
Income tax paid		( 192,142 )	( 140,836 )
Net cash flows from operating activities		2,557,143	3,308,379

(Continued)

FORMOSA TAFFETA CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)

	Notes	Year ended December 31
		2025	2024
CASH FLOWS FROM INVESTING ACTIVITIES
Decrease (increase) in financial assets at amortized cost		$ 3,955	($ 468,761)
Acquisition of investment accounted for using the equity method	7	( 85,646 )	( 46,043 )
Acquisition of property, plant and equipment	6(27)	( 765,775 )	( 592,165 )
Proceeds from disposal of property, plant and equipment		42,909	259,027
Increase in other non-current assets		( 8,664 )	( 32,885 )
Guarantee deposits (paid) received		( 4,616 )	6,530
Net cash flows used in investing activities		( 817,837 )	( 874,297 )
CASH FLOWS FROM FINANCING ACTIVITIES
Decrease in short-term borrowings	6(28)	( 250,308 )	( 33,051 )
Increase in long-term borrowings	6(28)	7,800,000	10,900,000
Payment of long-term borrowings	6(28)	( 7,800,000 )	( 13,100,000 )
Payment of lease principal	6(28)	( 171,939 )	( 170,215 )
Cash dividends paid		( 1,443,455 )	( 844,102 )
Expired cash dividends paid		( 539 )	( 207 )
Net cash flows used in financing activities		( 1,866,241 )	( 3,247,575 )
Effect of foreign exchange rate		( 170,687 )	97,014
Net decrease in cash and cash equivalents		( 297,622 )	( 716,479 )
Cash and cash equivalents at beginning of year	6(1)	3,524,678	4,241,157
Cash and cash equivalents at end of year	6(1)	$ 3,227,056	$ 3,524,678

The accompanying notes are an integral part of these consolidated financial statements.

FORMOSA TAFFETA CO., LTD.
PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)

	Notes	Year ended December 31
		2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax		$ 942,948	$ 1,555,197
Adjustments
Adjustments to reconcile profit (loss)
Depreciation (including depreciation on investment property)	6(6)(7)(19)
Reversal of provision for bad debt expense	12(2)	( 12,000 )	-
Interest expense	6(21)	175,789	193,577
Interest income	6(16)	( 57,465 )	( 72,340 )
Dividend income	6(17)	( 315,091 )	( 765,285 )
Gain on valuation of financial liabilities	6(18)	-	( 479 )
Share of profit of associates and joint ventures accounted for using the equity method	6(5)
Gain on disposal and scrap of property, plant and equipment	6(18)	( 580,013 )	( 492,068 )
Impairment gain and reversal of real estate impairment loss	6(18)	( 39,464 )	( 21,679 )
(Realized) unrealized gain on disposal of property, plant and equipment		-	( 77,316 )
Changes in operating assets and liabilities
Changes in operating assets
Notes receivable		( 23,648 )	42,622
Notes receivable - related parties		1,722	( 506 )
Accounts receivable, net		39,519	( 231,532 )
Accounts receivable - related parties		( 887 )	10,181
Other receivables		( 29,123 )	( 50,585 )
Inventories		439,074	476,718
Prepayments		( 19,855 )	( 6,660 )
Other current assets		2,893	6,939
Changes in operating liabilities
Notes payable		4,144	( 2,835 )
Notes payable - related parties		9,866	( 87,578 )
Accounts payable		18,212	181,347
Accounts payable - related parties		( 228,886 )	177,695
Other payables		( 11,372 )	63,754
Other current liabilities		( 41,995 )	43,689
Other non-current liabilities		16,375	( 54,997 )
Cash inflow generated from operations		1,061,742	1,689,535
Interest received		56,877	78,520
Cash dividends received		797,229	995,754
Interest paid		( 166,604 )	( 185,710 )
Income tax paid		( 61,252 )	( 68,106 )
Net cash flows from operating activities		1,687,992	2,509,993

(Continued)

FORMOSA TAFFETA CO., LTD.
PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)

	Notes	Year ended December 31
		2025	2024
CASH FLOWS FROM INVESTING ACTIVITIES
Decrease (increase) in non-current financial assets at amortised cost		$ 7,852	($ 211,774)
Acquisition of investment accounted for using the equity method		( 85,577 )	( 46,043 )
Acquisition of property, plant and equipment	6(24)	( 264,132 )	( 272,860 )
Proceeds from disposal of property, plant and equipment		45,142	256,102
(Increase) decrease in other non-current assets		( 80,046 )	10,066
Net cash flows used in investing activities		( 376,761 )	( 264,509 )
CASH FLOWS FROM FINANCING ACTIVITIES
(Decrease) increase in short-term borrowings	6(25)	( 296 )	296
Payment of lease principal		( 181,235 )	( 179,692 )
Increase in long-term borrowings	6(25)	7,800,000	10,900,000
Payment of long-term borrowings	6(25)	( 7,800,000 )	( 13,100,000 )
Cash dividends paid		( 1,443,994 )	( 844,309 )
Net cash flows used in financing activities		( 1,625,525 )	( 3,223,705 )
Net decrease in cash and cash equivalents		( 314,294 )	( 978,221 )
Cash and cash equivalents at beginning of year	6(1)	2,173,727	3,151,948
Cash and cash equivalents at end of year	6(1)	$ 1,859,433	$ 2,173,727

The accompanying notes are an integral part of these parent company only financial statements.

FORMOSA TAFFETA CO., LTD
Earnings Distribution Proposal
For the year of 2025
Unit : NT$

Items	Amount	Items	Amount	Explanation
Available for Distribution:
(1) Unappropriated retained earnings of previous years

(2) Net profit after tax of current year
Plus : Other comprehensive income reclassified to unappropriated retained earnings of current year

(3) Reversal of Special Reserve | 6,038,244,779
865,250,237
69,854,719
1,108,104,478 | Distribution Items:
(1) Appropriation of legal reserve

(2) Distribution of dividends in cash ($0.5 per share)

(3) Unappropriated retained earnings carried forward to next year | 93,510,496
842,332,319
7,145,611,398 | 1. The Company’s registered capital is $16,846,646,370, and shares for distribution are 1,684,664,637.

Pursuant to Article 31 of Articles of Incorporation of the Company, the distribution of cash dividends is authorized to the Board of Directors to resolve and report to the shareholders’ meeting.
The Company plans to distribute dividends of NT$0.5 per share for the current year; all of which are cash dividends.
The dividends distributed are all from earnings after tax from 2025.
While the amount of distributed cash dividends to each individual shareholder is less than 1 dollar, it will be rounded to the nearest dollar.
Other comprehensive income reclassified to unappropriated retained earnings of current year, which are adjustment for actuarial pension valuation.
According to Explanation Letter No. 1090150022 of the Securities and Futures Bureau, Financial Supervisory Commission, when the appropriated special reserve is reversed due to being accounted for as a net reduction in other equity, the Company may reverse the special reserve to distribute earnings regarding the reversed portion. |
| Total | 8,081,454,213 | Total | 8,081,454,213 | |

INDEPENDENT AUDITORS' REPORT TRANSLATED FROM CHINESE

To the Board of Directors and Shareholders of Formosa Taffeta Co., Ltd.

Opinion

We have audited the accompanying consolidated balance sheets of Formosa Taffeta Co., Ltd. and its subsidiaries (the "Group") as at December 31, 2025 and 2024, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the financial statements, including a summary of material accounting policies.

In our opinion, based on our audits and the reports of other independent auditors (refer to the Other matter section), the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect as endorsed by the Financial Supervisory Commission.

Basis for opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the consolidated financial statements section of our report. We are independent of the Group in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Group's 2025 consolidated financial statements. These matters were addressed in the context of our audit of the consolidated financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters. Key audit matters for the Group's 2025 consolidated financial statements are stated as follows:

Valuation of inventory

Description

Refer to Note 4(13) for accounting policy on inventory valuation, Note 5 for accounting estimates and assumption uncertainty in relation to inventory valuation, and Note 6(5) for description of allowance for inventory valuation losses. As of December 31, 2025, the Group's inventory and allowance for market value decline and obsolete and slow-moving inventories amounted to NT$7,931,344 thousand and NT$819,095 thousand, respectively.

The Group is primarily engaged in fiber dyeing and finishing, manufacturing and sales of curtains. As the textile manufacturing market is competitive, there is higher risk of incurring loss on inventory valuation. The Group recognizes inventories at the lower of cost and net realizable value, and the net realizable value is calculated based on the estimated selling price in the ordinary course of business,

less the estimated cost of completion and the estimated cost necessary to make the sale. Since the calculation of net realizable value involves subjective judgement and uncertainty and the inventory is material to the financial statements, we considered the valuation of inventory a key audit matter.

How our audit addressed the matter

Our procedures in relation to management’s assessment of the allowance for inventory valuation losses included:

A. Assessing the reasonableness of policies and procedures on allowance for inventory valuation loss, including the reasonableness of classification of inventory in determining the net realizable value;

B. Understanding the inventory management procedures, examining and participating in annual physical count and assessing the effectiveness of inventory management and inventory classification determined by management; and

C. Checking the method in calculating the net realizable value of inventory and assessing the reasonableness of allowance for valuation loss.

Other matter - Reference to the audits of other auditors

We did not audit the financial statements of certain subsidiaries and investments accounted for under the equity method which were audited by other auditors. Therefore, our opinion expressed herein, insofar as it relates to the amounts included in respect of these subsidiaries and associates, is based solely on the reports of the other auditors. Total assets of these subsidiaries and the balances of these investments accounted for under the equity method amounted to NT$9,325,330 thousand and NT$9,601,407 thousand, constituting 16% and 18% of the consolidated total assets as at December 31, 2025 and 2024, respectively, and operating revenue amounted to NT$5,177,873 thousand and NT$5,529,264 thousand, constituting 19% and 19% of the consolidated total operating revenue for the years then ended, respectively. The comprehensive loss recognized from these associates accounted for under the equity method amounted to (NT$101,297) thousand and (NT$368,011) thousand, constituting 2% and (2%) of the consolidated total comprehensive income (loss) for the years ended December 31, 2025 and 2024, respectively.

Other matter - Parent company only financial reports

We have audited and expressed an unmodified opinion on the parent company only financial statements of Formosa Taffeta Co., Ltd. as at and for the years ended December 31, 2025 and 2024.

Responsibilities of management and those charged with governance for the financial statements.

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 the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect as endorsed by the Financial Supervisory Commission, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

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

Those charged with governance, including members of the Audit Committee, are responsible for overseeing the Company’s financial reporting process.

Auditors’ responsibilities for the audit of the consolidated financial statements

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

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

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

B. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.

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

D. Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Group to cease to continue as a going concern.

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

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

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are

therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Juanlu, Man-Yu
Hsu, Sheng-Chung
For and on Behalf of PricewaterhouseCoopers, Taiwan
March 10, 2026

The accompanying consolidated financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying consolidated financial statements and independent auditors’ report are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

INDEPENDENT AUDITORS' REPORT TRANSLATED FROM CHINESE

To the Board of Directors and Shareholders of Formosa Taffeta Co., Ltd.

Opinion

We have audited the accompanying parent company only balance sheets of Formosa Taffeta Co., Ltd. (the “Company”) as at December 31, 2025 and 2024, and the related parent company only statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the financial statements, including a summary of material accounting policies. In our opinion, based on our audits and the reports of other independent auditors (refer to the Other matter section), the accompanying parent company only financial statements present fairly, in all material respects, the financial position of the Company as at December 31, 2025 and 2024, and its financial performance and its cash flows for the years then ended in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers”.

Basis for opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ responsibilities for the audit of the parent company only financial statements section of our report. We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

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

Key audit matters for the Company’s parent company only financial statements of the current period are stated as follows:

Valuation of inventory

Description

Refer to Note 4(12) for accounting policy on inventory valuation, Note 5 for accounting estimates and assumption uncertainty in relation to inventory valuation, and Note 6(4) for description of allowance for inventory valuation losses. As of December 31, 2025, the Company’s inventory and allowance for market value decline and obsolete and slow-moving inventories amounted to NT$4,688,384 thousand and NT$648,129 thousand, respectively.

The Company is primarily engaged in fiber dyeing and finishing, manufacturing and sales of curtains. As the textile manufacturing market is competitive, there is higher risk of incurring loss on inventory valuation. The Company recognizes inventories at the lower of cost and net realizable value, and the net realizable value is calculated based on the estimated selling price in the ordinary course of business, less the estimated cost of completion and the estimated cost necessary to make the sale. Since the calculation of net realizable value involves subjective judgement and uncertainty and the inventory is material to the financial statements, we considered the valuation of inventory a key audit matter.

How our audit addressed the matter

Our procedures in relation to management’s assessment of the allowance for inventory valuation losses included:

C. Checking the method in calculating the net realizable value of inventory and assessing the reasonableness of allowance for valuation loss.

Other matter - audits of the other independent auditors

We did not audit the financial statements of certain investments accounted for under the equity method which were audited by other auditors. Therefore, our opinion expressed herein, insofar as it relates to the amounts included in respect of these associates, is based solely on the reports of the other auditors. Total balances of these investments accounted for under the equity method amounted to NT$6,731,078 thousand and NT$6,870,915 thousand, constituting 12% and 14% of the total assets as at December 31, 2025 and 2024, respectively, and the comprehensive loss recognized from these associates accounted for under the equity method amounted to (NT$250,478) thousand and (NT$208,630) thousand, constituting (4%) and

(1%) of the total comprehensive (loss) income for the years then ended, respectively.

Responsibilities of management and those charged with governance for the financial statements

Management is responsible for the preparation and fair presentation of the parent company only financial statements in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and for such internal control as management determines is necessary to enable the preparation of parent company only financial statements that are free from material misstatement, whether due to fraud or error. In preparing the parent company only financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Those charged with governance, including members of the Audit Committee, are responsible for overseeing the Company’s financial reporting process.

Auditors’ responsibilities for the audit of the parent company only financial statements

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

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

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

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

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

Juanlu, Man-Yu
Hsu, Sheng-Chung
For and on Behalf of PricewaterhouseCoopers, Taiwan
March 10, 2026

The accompanying parent company only financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying parent company only financial statements and independent auditors' report are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

Articles of Incorporation of Formosa Taffeta Co., Ltd.
Amended by the Annual Shareholders’ Meeting on June 20, 2025

Chapter 1 General Provisions

Article 1: The Company shall be incorporated as a company limited by shares under the Company Act and its name is “Formosa Taffeta Co., Ltd.”.

Article 2: The scope of business of the Company shall be as follows:

Production and selling of nylon taffeta and polyester fabric
Production and selling of umbrella ribs and tire cord fabric
Processing and selling of high polymer production and so on
Processing and selling of cotton yarn, artificial cotton yarn, synthetic fiber yarn, mixed yarn, woven cloth, commodities after dyeing and finishing, garments, bed sheets, bedspread and the like
Production and selling of articles of protective fabric, including (1) bulletproof vest/jacket/helmet/shield/mask, durable cloth, commodities made of composite materials (sports equipment, finishing tackle); (2) industrial coveralls, like fabric that is acid/alkali/fire/heat resistant, and commodities processed with aforementioned fabric, like fire-fighting coat, boiler suit, chemical industrial coveralls; (3) cleanroom articles (sterile gown, operating suit, medical covering cloth, antistatic clothes, etc.) and clean suits
Designing, manufacturing and selling of IT related software, hardware and components
Operation of the sight-seeing /recreation areas, children’s amusement park, parks, camping sites, swimming pools, skating rink, zoo and comprehensive athletic field and rental business of equipment of aquatics and yachts

Operation of hotels and affiliated restaurants
Buying and selling of native producer, crafts, groceries, articles and apparel
Acting as an agent and a producer of various domestic and foreign culture &art performances
Gas stations to sell gasoline, diesel kerosene, and small packages of petroleum commodities; selling of goods of automobiles/motorcycles, services of lubrication, simple repair & maintenance, car washing, periodic outsourced automobile inspections, setup of vending machines, and operations of convenient stores and parking lots
ZZ99999 All business items that are not prohibited or restricted by law, except those that are subject to special approval

Article 3: The Company has its head office in Yunlin County and shall, as necessary, establish its subsidiaries upon the resolutions of the Board of Directors.

Article 4: Public announcements of the Company shall be published in accordance with Article 28 of the Company Act.

The total investment amount of the Company may exceed forty percent of the paid-in capital. The Company may provide guarantees for related parties.

Chapter 2 Shares

Article 5: The total capital of the Company shall be in the amount of 16,846,646,370 New Taiwan Dollars, divided into 1,684,664,637 shares, at a par value of 10 New Taiwan Dollars per share, issued in full.

Article 6: The Company may be exempted from printing any share certificates in accordance with relevant regulations. However, those shares shall be registered in a centralized securities depository enterprise.

Article 7: The shareholders shall submit their seal specimen to the Company for record. Afterward, the shareholders shall receive the dividend or exercise their rights in writing against the specimen kept by the Company. In the event that the seal specimen is lost or stolen, the shareholders shall fill out the application of lost seal with detailed share certificate numbers and shares and submit the same along with identity documents and copies, new seal specimen and share certificates to the Company for registration. The new seal card will be replaced upon approval and will be effective on the next day of completed registration. When preceding replacement of seal specimen is entrusted to others or managed by communication, the individual shareholder shall also have the seal certificate issued by the Householder Registration Office enclosed; while the application shall be enclosed by the corporate shareholders.

Article 8: (deleted)

Article 9: (deleted)

Article 10: (deleted)

Article 11: No transfer of share certificates shall be permitted within 60 days prior to regular shareholders’ meeting, 30 days prior to a special shareholders’ meeting, or within 5 days prior to the record day on which a dividend, bonus, or any other benefit is scheduled to be paid by the Company.

Chapter 3 Shareholders’ Meeting

Article 12: The Company holds two types of shareholders’ meetings.

Regular meetings shall be convened by the Board of Directors within 6 months after the close of each fiscal year, and notices of those meetings shall be given to shareholders 30 days in advance.

Special meetings shall be convened pursuant to Company Act as necessary, and notices of those meetings shall be given to shareholders 15 days in advance.

The meeting notice and public announcement of those meetings shall specify reasons for convening a meeting; they can be given in electronic form with the consent of the addressee

Article 13: If a shareholder is unable to attend a meeting, the shareholder may, in accordance with the Article 177 of the Company Act, show the proxy and appoint a representative to attend it.

Article 14: The chairman of the board of directors shall preside over the shareholders' meetings; in the Chairman's absence, the Chairman shall designate one director to act on his behalf. If no such designation is made by the chairperson, the directors shall select one person from among themselves to serve as chair.

Article 15: Each share of stock owned by shareholders shall be entitled for one vote, except for those shares without voting rights as set forth in Article 179, paragraph 2 of the Company Act.

Article 16: Resolution passed by shareholders, such shareholders holding not less than half of the Shares held by all Shareholders attending that meeting, and such meeting attended by Shareholders holding not less than half of all issued Shares of the Company.

Article 17: Revolutions adopted at a shareholders' meeting shall be recorded in the minutes of the meeting. Minutes shall include a summary of the essential points of the proceedings and the results of the meeting and be signed by or sealed with the chop of the chairman of the meeting and delivered to each shareholder within 20 days after that meeting. The electronic method may be adopted for the production and delivery of such minutes. Such minutes, together with the attendance list and proxies, shall be filed in the Company. The distribution of preceding meeting minutes may be replaced with the announcement made on the MOPS.

Chapter 4 Directors

Article 18: 9~11 directors shall be elected for the Company at the shareholders’ meeting from the nominees listed in the roster of candidates under the candidate nomination system. Their terms of office shall be three years; they shall be eligible for re-election.

The Company shall have at least three independent directors among the directors above. The matters regarding method of nomination and other matters shall be conducted in accordance with the Company Act and related regulations of competent authority for securities.

The Company shall have the Audit Committee organized by all independent directors in accordance with Article 14-4 of the Securities Exchange Act. For matters regarding the competence and related events, the Company shall follow the Securities Exchange Act and other relevant laws and regulations.

The Board of Directors is authorized to determine the compensation of directors according to their degree of participation and contribution with normal standard in the same industry.

The Company may obtain directors liability insurance with respect to liabilities resulting from exercising their duties during their terms of directorship.

Article 19: When the number of Directors falls short by one-third of the total number of Directors elected, the Company shall convene a meeting for election of Directors immediately. In respect of a Director who is elected to fill a vacancy, the term of office of such Director shall not exceed the term that remained when the person who has ceased to be a Director ceased to hold.

Article 20: In case no election of new directors is effected after expiration of the term of office of existing directors, the term of office of

out-going directors shall be extended until the time new directors have been elected and assumed their office.

Article 21: The Board shall be formed pursuant to a resolution adopted by a majority vote of a meeting of the board of directors attended by over two-thirds or more of all the directors. The directors shall elect among them one Chairman, and may elect a vice chairman of the board. The Chairman represents the Company externally.

Article 22: The Company operational guidelines and other important issues shall be resolved to in the meeting of the board of directors. The first meeting of each term of the board of directors shall be convened by the director; the Chairman shall convey and preside the remaining meetings. In case the chairman of the board of directors is on leave or absent or cannot exercise his power and authority for any cause, the way of how to designate a representative to act in his/her behalf shall conform to Article 208 of Company Act.

The Board of the Directors may authorize the Chairman to exercise functions of the Board during the adjourned period.

Except for the material interest or related parties transactions involved to be resolved by the Board of Directors pursuant to the laws of related articles, the content of authorization is as follows:

Approve all important contracts.
Approve the mortgage loan of real estate and other loans.
Approve acquisition or disposal of the general assets and real estate.
Assign the directors and supervisors of the investee.
Approve the record date of capital increment or reduction and divided distribution.

Article 23: The resolutions of the Board of Directors of the Company shall be adopted by a majority vote of the shareholders’ present, who

represent more than one-half of the total number of voting shares. If any Director of the Board of the Company cannot attend the meeting for any cause, he/she may issue a written proxy, stating the scope of the authorized power, to other directors for attending the meeting. However, a director may accept the appointment to act as the proxy with extinct extent of authorization of one other director only. In case a meeting of the Board of Directors is proceeded via visual communication network, then the directors taking part in such a visual communication meeting shall be deemed to have attended the meeting in person.

In calling a meeting of the Board of Directors, the notice with reasons specified shall be given to all directors within 7 days in advance. However, the meeting may be convened anytime for emergency events. The notice of the meeting of the Board of Directors may be made in writing, email or facsimile.

Article 24: Minutes shall be taken of the proceedings of the meeting of the board of directors. Minutes shall record the date, the place of the meeting, the name of the chairman, the method of adopting resolutions, and a summary of the essential points of the proceedings and results of the meeting, and be signed by or sealed with the chop of the chairman of the meeting and delivered to each shareholder within 20 days after that meeting. Minutes, together with the attendance list and proxies, shall be filed in the Company.

Article 25: (deleted)

Chapter 5 Managers

Article 26: The Company may have one or more managerial personnel; appointment and discharge and the remuneration of the managerial personnel shall be decided in accordance with Article 29 of the Company Act.

Article 27: (deleted)

Article 28: (deleted)

Article 29: The fiscal year of the Company shall be from January 1 to December 31 every year. After the close of each fiscal year, the Board of Directors shall prepare following statements and records and submit the same to the general meeting of shareholders for ratification:

The business report;
The financial statements; and
The surplus earning distribution or loss off-setting proposals.

Chapter 6 Accounting

Article 30: When allocating the net profits for each fiscal year, the Company shall set aside 0.05% to 0.5% of the balance of pre-tax profit prior to deducting employees’ and directors’ compensation as employees’ compensation and 0.5% of that at most as directors’ compensation. However, the Company’s accumulated losses shall have been covered.

The employee compensation mentioned in the previous paragraph shall be allocated at a rate ranging from 0.05% to 0.49% of the pre-tax profit before deducting employee and director compensation for the current fiscal year, to adjust the salaries or distribute compensation to the grassroots employees.

The resolution of employees’ and directors’ compensation shall conform to Article 235-1 of the Company Act.

Article 31: Where there is surplus of the annual final account, when allocating the net profits for each fiscal year, the Company shall first pay its income tax and offset its prior years’ accumulated losses and set aside 10% legal capital reserve and special earning reserve as necessary. However, when the accumulated legal reserve amounts to the paid-in capital, this shall not apply. For remaining surplus incorporated with the accumulated earning in

previous years, the Board of Directors shall prepare the proposal concerning the appropriation of net profits is authorized to distribute dividends paid in cash after a resolution has been adopted by a majority vote at a meeting of the board of directors attended by over two-thirds of the directors; and in addition thereto a report of such distribution shall be submitted to the shareholders' meeting. The dividends paid in stock shall be submitted for the approval in a shareholders' meeting.

Preceding special earning reserves include:

The earning reserved recognized for special purpose.
Investment income recognized under the equity method
The net assessment income recognized due to financial product transactions, however, when the accumulated amount is reduced, the equal amount of special earning reserve shall be reduced simultaneously and up to the reserved number.
Other special earning reserve pursuant to laws and regulations The Company is in matured phase of business cycle with stable profit every year. The dividend policies adopt the combination of cash dividend, capital increment by earning and by capital reserve. At least 50% of distributable earning deducted by the legal and special reserve shall be distributed, and the cash dividend shall be prioritized. Meanwhile, the percentage of capital increment by earning and capital reserve shall not exceed 50% of all dividend in that year.

Chapter 7 Additional provision

Article 32: Organizational regulations and rules of the Company are stipulated by the Board of Directors.

Article 33: Matters not provided for in these Articles of Incorporation shall be governed by the Company Act and other relevant laws.

Article 34: The employee welfare committee may spend no more than 10% of

the employee welfare fund of that fiscal year on purchase of the Company’s odd lots and government bonds if the fund is more than the budget for employee welfare.

Article 35: These Articles of Incorporation were adopted on March 16, 1973. The 1st Amendment was on April 7, 1973; 2nd Amendment on June 10, 1973; 3rd Amendment on March 11, 1974; 4th Amendment on Dec. 20, 1974; 5th Amendment on May 31, 1975; 6th Amendment on March 31, 1976; 7th Amendment on June 28, 1977; 8th Amendment on April 3, 1978; 9th Amendment on Dec. 14, 1978; 10th Amendment on March 20, 1979; 11th Amendment on Nov. 19, 1979; 12th Amendment on March 18, 1980; 13th Amendment on Feb. 28, 1981; 14th Amendment on Sep. 10, 1981; 15th Amendment on Feb. 26, 1982; 16th Amendment on Feb. 26, 1983; 17th Amendment on Feb. 14, 1984; 18th Amendment on March 15, 1985; 19th Amendment on April 30, 1986; 20th Amendment on April 28, 1987; 21st Amendment on May 3, 1988; 22nd Amendment on May 3, 1989; 23rd Amendment on May 4, 1990; 24th Amendment on May 2, 1991; 25th Amendment on May 4, 1992; 26th Amendment on May 7, 1993; 27th Amendment on April 28, 1994; 28th Amendment on May 10, 1995; 29th Amendment on May 13, 1996; 30th Amendment on May 13, 1997; 31st Amendment on May 15, 1998; 32nd Amendment on June 3 1999; 33rd Amendment on June 2, 2000; 34th Amendment on May 24, 2001; 35th Amendment on June 14, 2002; 36th Amendment on June 13, 2003; 37th Amendment on June 11, 2004; 38th Amendment on June 17, 2005; 39th Amendment on June 29, 2006; 40th Amendment on June 28, 2007; 41st Amendment on June 27, 2008; 42nd Amendment on June 26, 2009; 43rd Amendment on June 29, 2010; 44th Amendment on June 26, 2012; 45th Amendment on June 27, 2013; 46th Amendment on June 24, 2016; 47th Amendment on

June 24, 2022, the articles in related with addition of Audit Committee and deletion of Supervisors will be applied upon the expiry of the term of office of Supervisors selected in the shareholders' meeting on June 26, 2014, 48th amendment is added to the existing Article on June 16, 2023, 49th amendment is added to the existing Article on June 21, 2024. The 50th amendment is added to the existing Article on June 20, 2025.

Rules of Procedure for Shareholders' Meetings of Formosa Taffeta Co., Ltd.

Amended by the Annual Shareholders' Meeting on July 30, 2021

Article 1: To establish a strong governance system and sound supervisory capabilities for the Company's shareholders' meetings, and to strengthen management capabilities, these Rules are adopted pursuant to the Corporate Governance Best Practice Principles for Taiwan Stock Exchange Corp (“TWSE”)/Taipei Exchange (“TPEx”) Listed Companies.

Article 2: The rules of procedures for the Company's shareholders' meetings, except as otherwise provided by law, regulation, or the Articles of Incorporation, shall be as provided in these Rules.

Article 3: Unless otherwise provided by law or regulation, the Company's Shareholders' Meetings shall be convened by the Board of Directors.

A notice to convene an annual shareholders' meeting shall be given to each shareholder no later than 30 days prior to the scheduled meeting date; while a notice may be given to registered shareholders who own less than 1,000 shares of nominal stocks no later than 30 days prior to the scheduled meeting date in the form of a public announcement on the Market Observation Post System (MOPS) of the TWSE. A notice to convene a special shareholders' meeting shall be given to each shareholder no later than 15 days prior to the scheduled meeting date. A public notice may be given to registered shareholders who own less than 1,000 shares of nominal stocks no later than 15 days prior to the scheduled meeting date in the form of a public announcement on the MOPS of the TWSE.

To convene a shareholders' meeting, the Company shall prepare a meeting handbook. The Company shall prepare electronic versions of a shareholders' meeting notice and proxy forms, and causes of and explanatory materials relating to all proposals, including proposals for ratification, matters for deliberation, or the election

or dismissal of directors, and upload them to the MOPS no later than 30 days prior to the scheduled Annual Shareholders' Meeting date or no later than 15 days prior to the scheduled Special Shareholders' Meeting date. The Company shall prepare electronic versions of a shareholders' meeting handbook and supplemental meeting materials and upload them to the MOPS no later than 21 days prior to the scheduled Annual Shareholders' Meeting date or no later than 15 days prior to the scheduled Special Shareholders' Meeting date. In addition, the Company shall also have prepared a shareholders' meeting handbook and supplemental meeting materials and made them available for review by shareholders at any time no later than 15 days prior to the scheduled Shareholders' Meeting date. The Meeting Agenda and supplemental materials shall also be displayed at the Company and the professional shareholder services agent engaged by the Company as well as being distributed on-site at the meeting place.

The reasons for convening a shareholders' meeting shall be specified in the meeting notice and public announcement. With the consent of the addressee, the meeting notice may be given in electronic form.

Election or dismissal of directors, amendments to the Articles of Incorporation, capital reduction, application to be delisted from public offering, lifting of non-competition restriction of directors, capital increase by retained earnings, capital increase by capital reserve, dissolution, merger, or demerger of the corporation, or any matter under Paragraph 1 of Article 185 of the Company Act, Articles 26-1 and 43-6 of the Securities and Exchange Act, Articles 56-1 and 60-2 of the Regulations Governing the Offering and Issuance of Securities by Securities Issuers shall be set out in the notice of the reasons for convening the shareholders' meeting. None of the above matters may be raised by an extraordinary motion.

Where the meeting agenda has specified general re-elections of the directors and the terms of the directors' office, the terms of office of the directors shall not be altered by raising an extraordinary

motion or any other method upon the completion of the general elections at the shareholders' meeting.

A shareholder holding 1 percent or more of the total number of issued shares may submit to the Company a proposal for discussion at an annual shareholders' meeting. Such proposals, however, are limited to one item only, and no proposal containing more than one item will be included in the Meeting Agenda. In addition, when the circumstances of any subparagraph of paragraph 4 of Article 172-1 of the Company Act apply to a proposal put forward by a shareholder, the Board of Directors may exclude it from the Agenda. A shareholder may propose a recommendation for urging the corporation to promote public interests or fulfill its social responsibilities, and the providing procedure shall be in accordance with Article 172-1 of the Company Act.

Prior to the book closure date before an annual shareholders' meeting is held, the Company shall publicly announce that it will receive shareholder proposals, the method of receiving such proposals (whether written or in electronic form), and the location and time period for their submission; the period for submission of shareholder proposals may not be less than 10 days.

Shareholder-submitted proposals are limited to 300 words, and no proposal containing more than 300 words will be included in the meeting agenda. The shareholder making the proposal shall be present in person or by proxy at the Annual Shareholders' Meeting and take part in discussion of the proposal.

Prior to the date for issuance of notice of a shareholders' meeting, the Company shall inform the shareholders who submitted proposals of the proposal screening results, and shall list in the meeting notice the proposals that conform to the provisions of this article. At the Shareholders' Meeting the Board of Directors shall explain the reasons for exclusion of any shareholder proposals not included in the agenda.

Article 4: For each shareholders' meeting, a shareholder may appoint a proxy

to attend the meeting by providing the proxy form issued by the Company and stating the scope of the power authorized to the proxy.

A shareholder may issue only one proxy form and appoint only one proxy for any given shareholders' meeting, and shall deliver the proxy form to the Company no later than 5 days prior to the Shareholders' Meeting date. When duplicate proxy forms are delivered, the one received earliest shall prevail unless a declaration is made to revoke the previous proxy appointment.

After a proxy form has been delivered to the Company, if the shareholder intends to attend the meeting in person or to exercise voting rights in writing or by way of electronic transmission, a written notice of proxy rescission shall be submitted to the Company no later than 2 days prior to the meeting date. If the rescission notice is submitted after that time, votes cast at the meeting by the proxy shall prevail.

Article 5: The venue for a shareholders' meeting shall be the premises of the Company, or a place easily accessible to shareholders and suitable for a shareholders' meeting. The meeting may begin no earlier than 9 a.m. and no later than 3 p.m.

Article 6: The Company shall specify in its shareholders' meeting notices the time during which shareholder attendance registrations will be accepted, the place to register for attendance, and other matters for attention.

The time during which shareholder attendance registrations will be accepted, as stated in the preceding paragraph, shall be at least 30 minutes prior to the time the meeting commences. The place at which attendance registrations are accepted shall be clearly marked and a sufficient number of suitable personnel assigned to handle the registrations.

The Company shall furnish attending shareholders with the meeting agenda book, annual report, attendance card, speaker's slips, voting slips, and other meeting materials. Where there is an election of directors, pre-printed ballots shall also be furnished.

Shareholders and their proxies (collectively, "shareholders") shall

attend shareholders' meetings based on attendance cards, sign-in cards, or other certificates of attendance. The Company shall not impose arbitrary requirements on shareholders to provide additional evidentiary documents beyond those showing eligibility to attend. Solicitors soliciting proxy forms shall also bring identification documents for verification.

When the government or a juristic person is a shareholder, it may be represented by more than one representative at a shareholders' meeting. When a juristic person is appointed to attend as proxy, it may designate only one person to represent it in the meeting.

Article 7: If a shareholders' meeting is convened by the Board of Directors, the meeting shall be chaired by the Chairman. When the Chairman is on leave or for any reason unable to exercise the powers of the Chairman, the Vice Chairman shall act in place of the Chairman; if there is no Vice Chairman or the Vice Chairman also is on leave or for any reason unable to exercise the powers of the Vice Chairman, the Chairman shall appoint one of the Managing Director to act as chair, or, if there are no Managing Directors, one of the Directors shall be appointed to act as chair. Where the Chairman does not make such a designation, the Managing Directors or the Directors shall select from among themselves one person to serve as chair.

When a Managing Director or a Director serves as chair, as referred to in the preceding paragraph, the Managing Director or Director shall be one who has held that position for 6 months or more and who understands the financial and business conditions of the Company. The same shall be true for a representative of a juristic person director that serves as chair.

It is advisable that shareholders' meetings convened by the Board of Directors be chaired by the Chairman, and the Chairman who chairs the way can appoint the Vice Chairman, Managing Director or Director of familiar company's business to direct the proceeding agenda of shareholders' meeting, that a majority of the Directors attend in person, and that at least one member of each functional committee attend as representative. Attendance details should be recorded in the Shareholders Meeting minutes. If a

shareholders' meeting is convened by a party having the convening right but other than the Board of Directors, the convening party shall chair the meeting. When there are two or more such convening parties, they shall mutually select a chair from among themselves.

The Company may appoint its attorneys, certified public accountants, or related persons retained by it to attend a shareholders' meeting in a non-voting capacity.

Article 8: The Company, beginning from the time it accepts shareholder attendance registrations, shall make an uninterrupted audio and video recording of the registration procedure, the proceedings of the shareholders' meeting, and the voting and vote counting procedures.

The recorded materials of the preceding paragraph shall be retained for at least 1 year. If, however, a shareholder files a lawsuit pursuant to Article 189 of the Company Act, the recording shall be retained until the conclusion of the litigation.

Article 9: Quorum at shareholders' meetings shall be calculated based on numbers of shares. The quorum shall be calculated according to the shares indicated by the sign-in cards handed in plus the number of shares whose voting rights are exercised in writing or by way of electronic transmission.

The Chair shall call the meeting to order at the appointed meeting time and meanwhile shall announce the related information about the total number of shares held by shareholders having no voting right and the total number of shares represented by the shareholders present at the meeting. However, when the attending shareholders do not represent a majority of the total number of issued shares, the Chair may announce a postponement, provided that no more than two such postponements, for a combined total of no more than 1 hour, may be made. If the quorum is not met after two postponements and the attending shareholders still represent less than one third of the total number of issued shares, the Chair shall declare the meeting adjourned.

If the quorum is not met after two postponements as referred to in

the preceding paragraph, but the attending shareholders represent one third or more of the total number of issued shares, a tentative resolution may be adopted pursuant to paragraph 1 of Article 175 of the Company Act; all shareholders shall be notified of the tentative resolution and another shareholders’ meeting shall be convened within 1 month.

When, prior to conclusion of the meeting, the attending shareholders represent a majority of the total number of issued shares, the Chair may resubmit the tentative resolution for a vote by the shareholders’ meeting pursuant to Article 174 of the Company Act.

Article 10: If a shareholders’ meeting is convened by the Board of Director, the meeting agenda shall be set by the Board of Directors. The relevant proposals (including extraordinary motions and amendment to original proposals) shall be decided by voting on a case-by-case basis. The meeting shall proceed in the order set by the agenda, which may not be changed without a resolution of the shareholders’ meeting.

The provisions of the preceding paragraph apply mutatis mutandis to a shareholders’ meeting convened by a party having the convening right that is not the Board of Directors.

The Chair may not declare the meeting adjourned prior to completion of deliberation on the meeting agenda of the preceding two paragraphs (including extraordinary motions), except by a resolution of the shareholders’ meeting. If the Chair declares the meeting adjourned in violation of the rules of procedure, the other members of the Board of Directors shall promptly assist the attending shareholders in electing a new chair in accordance with statutory procedures, by a majority of the votes represented by the attending shareholders, and then continue the meeting.

The Chair shall allow ample opportunity during the meeting for explanation and discussion of proposals and of amendments or extraordinary motions put forward by the shareholders; when the Chair is of the opinion that a proposal has been discussed sufficiently to put it to a vote, the Chair may announce the

discussion closed and shall also arrange ample time for a vote.

Article 11: Before speaking, an attending shareholder must specify on a speaker's slip the subject of the speech, his/her shareholder account number (or attendance card number), and account name. The order in which shareholders speak will be set by the Chair.

A shareholder in attendance who has submitted a speaker's slip but does not actually speak shall be deemed to have not spoken. When the content of the speech does not correspond to the subject given on the speaker's slip, the spoken content shall prevail.

Except with the consent of the Chair, a shareholder may not speak more than twice on the same proposal, and a single speech may not exceed 5 minutes. If the shareholder's speech violates the rules or exceeds the scope of the agenda item, the Chair may terminate the speech.

When an attending shareholder is speaking, other shareholders may not speak or interrupt unless they have sought and obtained the consent of the Chair and the shareholder that has the floor; the Chair shall stop any violation.

When a juristic person shareholder appoints two or more representatives to attend a shareholders' meeting, only one of the representatives so appointed may speak on the same proposal.

After an attending shareholder has spoken, the Chair may respond in person or direct relevant personnel to respond.

Article 12: Voting at a shareholders' meeting shall be calculated based on the number of shares.

With respect to resolutions of shareholders' meetings, the number of shares held by a shareholder with no voting rights shall not be calculated as part of the total number of issued shares.

When a shareholder is an interested party in relation to an agenda item, and there is the likelihood that such a relationship would prejudice the interests of the Company, that shareholder may not vote on that item, and may not exercise voting rights as proxy for any other shareholder.

In case a director of the Company has created a pledge on the Company's shares more than half of the Company's shares being

held by him/her/it at the time he/she/it is elected, the voting power of the excessive portion of shares shall not be exercised.

The number of shares for which voting rights may not be exercised under the preceding two paragraphs shall not be calculated as part of the voting rights represented by attending shareholders.

With the exception of a trust enterprise or a stock agency approved by the competent authority for securities, when one person is concurrently appointed as proxy by two or more shareholders, the voting rights represented by that proxy may not exceed 3 percent of the voting rights represented by the total number of voting shares, otherwise, the portion of excessive voting rights shall not be counted.

Article 13: A shareholder shall be entitled to one vote for each share held, except when the shares are restricted shares or are deemed non-voting shares under paragraph 2 of Article 179 of the Company Act.

When the Company convenes a shareholders’ meeting, shareholders shall exercise their voting rights by electronic means and may exercise their voting rights in writing. When voting rights are exercised in writing or by way of electronic transmission, the method for exercising the voting rights shall be specified in the shareholders’ meeting notice. A shareholder exercising voting rights in writing or by way of electronic transmission will be deemed to have attended the meeting in person, but to have waived his/her rights with respect to the extraordinary motions and amendments to original proposals of that meeting.

A shareholder intending to exercise voting rights in writing or by way of electronic transmission under the preceding paragraph shall deliver a written declaration of intent to the Company no later than 2 days prior to the scheduled shareholders’ meeting date. When duplicate declarations of intent are delivered, the one received earliest by the Company shall prevail, except when a declaration is made to revoke the earlier declaration of intention.

After a shareholder has exercised voting rights in writing or by way of electronic transmission, in the event the shareholder

intends to attend the shareholders' meeting in person, a written declaration of intent to rescind the voting rights already exercised under the preceding paragraph shall be made known to the Company, by the same means by which the voting rights were exercised, no later than 2 days prior to the scheduled shareholders' meeting date. If the notice of rescission is submitted after that time, the voting rights already exercised in writing or by way of electronic transmission shall prevail. When a shareholder has exercised voting rights both in writing or by way of electronic transmission and by appointing a proxy to attend a shareholders' meeting, the voting rights exercised by the proxy in the meeting shall prevail.

Except as otherwise provided in the Company Act and in the Company's Articles of Incorporation, the adoption of a proposal shall require an affirmative vote of a majority of the voting rights represented by the attending shareholders. At the time of a vote, for each proposal, the Chair or a person designated by the Chair shall announce the total number of voting rights represented by the attending shareholders, followed by a poll of the shareholders. After the conclusion of the meeting, on the same day it is held, the results for each proposal, based on the numbers of votes for and against and the number of abstentions, shall be entered into the MOPS.

When there is an amendment or an alternative to a proposal, the Chair shall present the amended or alternative proposal together with the original proposal and decide the order in which they will be put to a vote. When any one among them is passed, the other proposals will then be deemed rejected, and no further voting shall be required.

In addition to the proposals on the meeting agenda, when a shareholder wishes to propose an extraordinary motion, the shareholder's voting rights shall represent at least 1% or more of the Company's total issued shares.

Vote counting for shareholders' meeting proposals or elections shall be conducted in public at the place of the shareholders'

meeting. Immediately after vote counting has been completed, the results of the voting, including the statistical tallies of the numbers of votes, shall be announced on-site at the meeting, and a record made of the vote.

Article 14: The election of directors at a shareholders’ meeting shall be held in accordance with the applicable election and appointment rules adopted by the Company, and the voting results shall be announced on-site immediately, including the names of those elected and not elected as directors, and the numbers of votes with which they were elected and not elected.

The ballots for the election referred to in the preceding paragraph shall be sealed with the signatures of the monitoring personnel and kept in proper custody for at least 1 year. If, however, a shareholder files a lawsuit pursuant to Article 189 of the Company Act, the ballots shall be retained until the conclusion of the litigation.

Article 15: Matters relating to the resolutions of a shareholders’ meeting shall be recorded in the meeting minutes. The meeting minutes shall be signed or sealed by the Chair of the meeting and a copy distributed to each shareholder within 20 days after the conclusion of the meeting. The meeting minutes may be produced and distributed in electronic form.

The meeting minutes shall accurately record the year, month, day, and place of the meeting, the Chair's full name, the methods by which resolutions were adopted, and a summary of the deliberations and their results (including the weight of the votes), and the number of weighted votes each candidate received in case of a Directors' elections, and shall be retained for the duration of the existence of the Company.

Article 16: On the day of a shareholders’ meeting, the Company shall compile in the prescribed format a statistical statement of the number of shares obtained by solicitors through solicitation and the number of shares represented by proxies, and shall make an express disclosure of the same at the place of the shareholders’ meeting.

If matters put to a resolution at a shareholders’ meeting constitute

material information under applicable laws or regulations or under TWSE regulations, the Company shall upload the content of such resolution to the MOPS within the prescribed time period.

Article 17: Staff handling administrative affairs of a shareholders’ meeting shall wear identification cards or arm bands.

The Chair may direct the proctors or security personnel to help maintain order at the meeting place. When proctors or security personnel help maintain order at the meeting place, they shall wear an identification card or armband bearing the word "Proctor."

At the place of a shareholders’ meeting, if a shareholder attempts to speak through any device other than the public address equipment set up by the Company, the Chair may prevent the shareholder from so doing.

When a shareholder violates the rules of procedure and defies the Chair's correction, obstructing the proceedings and refusing to heed calls to stop, the Chair may direct the proctors or security personnel to escort the shareholder from the meeting.

Article 18: When a meeting is in progress, the Chair may announce a break based on time considerations. If a force majeure event occurs, the Chair may rule the meeting temporarily suspended and announce a time when, in view of the circumstances, the meeting will be resumed.

If the meeting venue is no longer available for continued use and not all of the items (including extraordinary motions) on the meeting agenda have been addressed, the shareholders’ meeting may adopt a resolution to resume the meeting at another venue.

A resolution may be adopted at a shareholders’ meeting to postpone or resume the meeting within 5 days in accordance with Article 182 of the Company Act.

Article 19: These Rules and any amendments hereto, shall be implemented after adoption by shareholders’ meetings.

Rules for Election of Directors of Formosa Taffeta Co., LTD.

Amended by the Annual Shareholders' Meeting on July 30, 2021

Article 1: Unless otherwise stipulated by the Company Act and this Company's charter, the election of this Company's directors shall be according to this Procedure.

Article 2: The Company shall adopt a cumulative voting method where one share shall have the same voting rights as the number of directors to be elected, and the total number of votes per share may be consolidated for the election of one candidate or may be split for the election of two or more candidates. The shareholder account number or attendance card numbers on the ballot may be used to replace the names of shareholders on the ballots.

Article 3: When the election begins, the chairperson shall designate several vote readers and vote counters to perform their duties.

Article 4: The number of directors will be as specified in the Company's Articles of Association. Those receiving ballots representing the highest numbers of voting rights will be elected sequentially according to their numbers of votes. When two or more persons receive the same number of votes, thus exceeding the specified number of positions, they shall draw lots to determine the winner, with the chair drawing lots on behalf of any person not in attendance.

Article 5: Elections of directors of the Company shall be conducted in accordance with the candidate nomination system pursuant to the Company's Articles of Association. The shareholders shall elect the directors from among the nominees listed in the roster of candidates. Independent directors and non-Independent directors shall be elected together. Quota for the independent director and non-independent director shall be counted separately pursuant to Article 4. At least one independent director-elect shall be equipped with accounting or financial expertise.

Methods, seats, and venue for nomination and other relevant matters for nomination of director candidates shall be announced prior to the book closure period before convening a Shareholders' Meeting. The nomination period shall be no less than 10 days.

The Board of Directors and shareholders holding 1% or more of the Company's issued shares shall be eligible to recommend a list of nominees for directors. However, the number of nominees cannot exceed the number of directors to be elected.

When providing the candidacy of nominees, shareholders and Board of Directors member shall specify the nominees' names, academic background, and experiences.

When the Board of Directors or other person with convening rights convenes a Shareholders' meeting, the nominees for directors shall be included in the roster of nominees for directors unless one of the following conditions apply:

(1) A shareholder recommends a nominee outside of the nomination period.
(2) A shareholder who wishes to recommend a nominee does not own 1% or more of the Company's shares before book closure pursuant to Article 165-2 or 165-3 of the Company Act.
(3) The number of nominees has exceeded the number of directors to be voted on.
(4) Where the nominating shareholder fails to describe the nominee's name, educational background, and work experience.

Article 6: Ballots shall be issued by the board of directors or other authorized conveners and given to electors based on their attendance pass number. Each elector shall be given the number of ballots equal to the number of the directors to be elected. The election votes of a shareholder shall be distributed proportionally to each ballot.

Article 7: The elector shall write down the director candidate's full name in

the "candidate" column of the ballot based on the director candidate list.

Article 8: A vote shall be considered invalid in any of the following circumstances:

(1) The elector fails to use the ballot provided in Article 6.
(2) The elector writes down two or more individuals on the ballot.
(3) Any words other than the items provided in Article 7 are written.
(4) The candidate's full name filled in the ballot does not conform to the director candidate list.
(5) The handwriting on the ballot is illegible.

Article 9: Ballots are counted immediately after the voting has been completed. The results shall be announced by the chairperson, including the list of the elected directors and supervisors and the number of shares voting.

Ballot electoral matters in the preceding paragraph shall be sealed after tellers sign and safe kept for at least one year. But the shareholders file lawsuit in accordance with the Article 189 of the Companies Act, shall be kept until the end of the proceedings.

Article 10: The Regulations and any amendment to the Regulations shall be implemented after approval by a shareholders' meeting.

Formosa Taffeta Co., Ltd.
Current Shareholdings of Directors

Title	Name	Shareholding (share)
Chairman	Formosa Chemicals & Fibre Corporation
Representative: Wong, Wen-Yuan	630,022,431
Director	Formosa Chemicals & Fibre Corporation
Representative: Hong, Fu-Yuan	630,022,431
Director	Formosa Chemicals & Fibre Corporation
Representative: Lee, Ching-Fen	630,022,431
Director	Formosa Chemicals & Fibre Corporation
Representative: Lee, Ming-Chang	630,022,431
Director	Formosa Chemicals & Fibre Corporation
Representative: Lee, Chien-Kuan	630,022,431
Director	Formosa Chemicals & Fibre Corporation
Representative: Wu,Li-Jen	630,022,431
Director	Changhua County Shu-Wang Lai’s Private Social Welfare Charity Foundation
Representative: Lee, Man-Chun	4,151,942
Director	Hsieh, Ming-Der	15,583,818
Managing Director
(Independent Director)	Lin, Sheng-Chung	0
Independent Director	Kuo, Nein-Hsiung	0
Independent Director	Kuo, Chia-Chi	3,000

Note: According to Article 26 of Securities and Exchange Act, the minimum shareholdings of the Company’s Directors are 40,431,952 shares. As of April 28, 2026, the actual shareholdings of the Company’s Directors are 649,761,191 shares.

Information regarding the Proposed Employees' and Directors' Compensation Adopted by the Board of Directors of the Company:

1. Amounts of employees’ cash compensation, stock compensation, and Directors’ compensation:
Employees’ cash compensation	NT$ 1,891,572
Employees’ stock compensation	NT$ 0
Directors’ cash compensation	NT$ 945,786
2. Shares of the proposed employees’ stock profit sharing bonus and the percentage of the share amount to that of all stock dividend:
Shares of employees’ stock compensation	0 share
Percentage of the share amount to that of all stock dividends capitalization	0%

The above-listed amounts of employees' and directors' compensation are consistent with the proposed ones adopted by the Board of Directors of the Company.

Effect upon Business Performance and Earnings Per Share of the Company by the Stock Dividend Distribution Proposed at the 2026 Annual Shareholders' Meeting:

Not applicable since the Company does not propose the stock dividend distribution to the 2026 Annual Shareholders' Meeting and is not required to prepare its financial forecast information.

AI assistant

F.T.C — AGM Information 2026

51797_rns_2026-05-25_5d0d3b12-19dd-4497-863b-f8aed8212386.pdf

Table of Contents

FORMOSA TAFFETA CO., LTD.

2026 ANNUAL SHAREHOLDERS' MEETING PROCEDURE

Report Items

(6) Gas Stations:

4. Conclusion

FORMOSA TAFFETA CO., LTD.

Ratification Items

Proposal 1

Explanation:

Resolution:

Ratification Items

Proposal 2

Explanation:

Resolution:

Election Items

Explanation:

Opinion

Basis for opinion

Key audit matters

Valuation of inventory

Description

How our audit addressed the matter

Other matter - Reference to the audits of other auditors

Other matter - Parent company only financial reports

Responsibilities of management and those charged with governance for the financial statements.

INDEPENDENT AUDITORS' REPORT TRANSLATED FROM CHINESE

Opinion

Basis for opinion

Key audit matters

Valuation of inventory

Description

How our audit addressed the matter

Other matter - audits of the other independent auditors

Responsibilities of management and those charged with governance for the financial statements

Auditors’ responsibilities for the audit of the parent company only financial statements

Chapter 1 General Provisions

Chapter 2 Shares

Chapter 3 Shareholders’ Meeting

Chapter 4 Directors

Chapter 5 Managers

Chapter 6 Accounting

Chapter 7 Additional provision

Rules of Procedure for Shareholders' Meetings of Formosa Taffeta Co., Ltd.

Rules for Election of Directors of Formosa Taffeta Co., LTD.

Information regarding the Proposed Employees' and Directors' Compensation Adopted by the Board of Directors of the Company:

More from F.T.C

F.T.C AGM Information 2026