6128

GENERAL PLASTIC INDUSTRIAL CO., LTD.
PARENT COMPANY ONLY
FINANCIAL STATEMENTS
WITH INDEPENDENT AUDITORS' REPORT
FOR THE YEARS ENDED
DECEMBER 31, 2025 AND 2024

Address: No.50, Tzu-Chiang Rd., Wu-Chi District, Taichung City, Taiwan, R.O.C.
Telephone: 886-4-26393103

Notice to readers:
The reader is advised that parent company only financial statements have been prepared originally in Chinese. In the event of a conflict between these financial statements and the original Chinese version or difference in interpretation between the two versions, the Chinese language financial statements shall prevail.

Independent Auditors' Report Translated from Chinese

To GENERAL PLASTIC INDUSTRIAL CO., LTD.

Opinion

We have audited the accompanying parent company only balance sheets of GENERAL PLASTIC INDUSTRIAL CO., LTD. (the "Company") as of December 31, 2025 and 2024, and the related parent company only statements of comprehensive income, changes in equity and cash flows for the years ended December 31, 2025 and 2024, and notes to the parent company only financial statements, including the summary of material accounting policies (together "the parent company only financial statements").

In our opinion, the parent company only financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and its financial performance and cash flows for the years ended December 31, 2025 and 2024, in conformity with the requirements of 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 the 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 (the "Norm"), and we have fulfilled our other ethical responsibilities in accordance with the Norm. 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 2025 parent company only financial statements. 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, and we do not provide a separate opinion on these matters.

Inventory Valuation

The Company specializes in manufacturing and selling toner cartridges of photocopiers, laser printers and OPC Drum Gears. The determination of the provisions for obsolete inventories involved a high level of management judgment, and were subject to uncertainty due to product diversity. Furthermore, the cost of inventory included direct labor, raw material, and overhead, and the calculation and allocation were complex. Also, the allocation basis could have a material impact on the financial statements. As such, we determined this to be a key audit matter. Our audit procedures included, but were not limited to, understanding and testing the design and operating effectiveness of internal control over inventory cost and allowance for inventory; assessing the appropriateness of the policy of provision for excess and obsolete inventory by testing the accuracy of inventory ageing and analyzing movement of the ageing, analyzing the difference between the policy of the current year and the prior year, and analyzing the difference between the historical provisions and the actual write-off amount; performing inventory price testing to verify the allocation of cost, direct labor, and overhead is reasonable; verifying that inventories were valued at the lower of cost or net realizable value by comparing the book value of inventories at the balance sheet date with recent sales price on selected samples; verifying the existence and completeness of inventories by tracing items on the final inventory listing to the physical inventory compilation; attending inventory counts to understand the status of the inventories and evaluate the appropriateness of the excess and obsolescence provision. We also considered the appropriateness of the disclosure of inventory in Note 6 to the parent company only financial statements.

Investments accounted for using the equity method- subsidiaries' goodwill impairment

The amount of goodwill impairment loss of the Company and its subsidiaries was significant to the financial statements. The Company performed impairment testing on the cash-generating units according to the International Financial Reporting Standards. Because the carrying amounts of goodwill impairment loss were significant to the Company and its subsidiaries, the determination of value in use was complex, as it involved significant management judgment when making assumptions about cash flow forecasts. We identified goodwill impairment as a key audit matter. Our audit procedures include, but are not limited to, evaluating whether the components of the cash-generating units have significantly changed, including analyzing the sales model and regions involved; evaluating the management's assessment approaches and assumptions of value in use; evaluating the reasonableness of key assumptions used by management, such as growth rates, discount rates, gross margin, and evaluating the reasonableness of key components of discount rates, such as cost of equity, company-specific risk premium and market risk premium by comparing them to other companies of similar size with the cash-generating units; interviewing management and assessing the reasonableness of assumptions used in their financial forecast, such as cash flows, gross margin, growth rates, the overall market and economic conditions; comparing the actual financials to date with previously forecast financials and analyzing the Company's historical data and performance to assess the reasonableness of the cash flow forecast. We also assessed the adequacy of the disclosures related to the result of impairment test and assumption's sensitivity in Notes 4 and 6 to the consolidated financial statements.

Revenue Recognition

The primary source of income of the Company is derived from sale of OEM-compatible imaging consumables and supplies, such as toner cartridges and drum gears for office equipment. Based on the varying contract terms in different distribution channels and sales models, it is significant to determine the timing when the control of goods is transferred and performance obligation is satisfied for the parent company only financial statements. We identified revenue recognition as a key audit matter. Our audit procedures include, but are not limited to, understanding and testing the effectiveness of internal controls related to revenue recognition in the sales cycle; selecting samples to perform the test of details of the sales transactions; reviewing the performance obligations of the orders or contracts and confirming the timing of performance obligations satisfaction against the related supporting documents to verify the correctness of the timing of revenue recognition; performing the cut-off testing for periods before and after the balance sheet date; and conducting analytical procedures for goods sold based on product types, regions, monthly sales revenue, and gross margin. We also considered the appropriateness of the disclosure of operating revenue in Note 6 to the parent company only financial statements.

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

Management is responsible for the preparation and fair presentation of the parent company only financial statements in accordance with the requirements of 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 the 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 ability to continue as a going concern of the Company, 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 audit committee, are responsible for overseeing the financial reporting process of the Company.

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 the parent company only 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 internal control of the Company.
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 ability to continue as a going concern of the Company. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the parent company only 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 accompanying notes, 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 the Company to express an opinion on the parent company only 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 2025 parent company only financial statements 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.

Huang, Yu-Ting

Lai, Shu-Chen

Ernst & Young, Taiwan

March 13, 2026

Notice to Readers

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

Accordingly, the accompanying parent company only financial statements and report of independent auditors are not intended for use by those who are not informed about the accounting principles or Standards on Auditing of the Republic of China, and their applications in practice. As the financial statements are the responsibility of the management, Ernst & Young 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.

English Translation of Parent Company Only Financial Statements Originally Issued in Chinese
GENERAL PLASTIC INDUSTRIAL CO., LTD.
PARENT COMPANY ONLY BALANCE SHEETS
December 31, 2025 and 2024
(Expressed in Thousands of New Taiwan Dollars)

	As of December 31,
		2025		2024
Assets	Notes	Amount	%	Amount	%
Current assets
Cash and cash equivalents	4, 6(1)	$223,371	4	$133,043	2
Financial assets measured at amortized cost, current	8	1,809	-	1,805	-
Notes receivable, net	6(2)	56	-	56	-
Accounts receivable, net	6(2)	89,969	2	116,730	2
Accounts receivable - related parties, net	6(2), 7	182,850	3	290,299	4
Other receivable	7	5,337	-	5,705	-
Inventories	4, 6(3)	181,563	4	204,994	3
Prepayments		8,876	-	10,037	-
Total current assets		693,831	13	762,669	11
Non-current assets
Investments accounted for using the equity method	4, 6(4)	3,125,901	60	4,761,629	68
Property, plant and equipment	4, 6(5), 8	1,064,483	20	1,069,334	15
Right-of-use assets	4, 6(14)	8,213	-	10,126	-
Investment property, net	4, 6(6)	298,154	6	306,033	5
Intangible assets	4, 6(7)	33,608	1	45,630	1
Deferred tax assets	4, 6(18)	12,539	-	11,793	-
Other non-current assets		10,454	-	15,693	-
Total non-current assets		4,553,352	87	6,220,238	89
Total assets		$5,247,183	100	$6,982,907	100

(The accompanying notes are an integral part of the parent company only financial statements)
(continued)

English Translation of Parent Company Only Financial Statements Originally Issued in Chinese

GENERAL PLASTIC INDUSTRIAL CO., LTD.

PARENT COMPANY ONLY BALANCE SHEETS (Continued)

December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

	As of December 31,
		2025		2024
Liabilities and Equity	Notes	Amount	%	Amount	%
Current liabilities
Short-term loans	4,6(8),7	$1,675,000	32	$1,810,000	26
Financial liabilities at fair value through profit or loss, current	4,12	113	-	895	-
Contract liabilities, current	4,6(13)	7,023	-	5,905	-
Notes payable		-	-	103	-
Accounts payable		68,580	1	80,725	1
Accounts payable - related parties	7	1,350	-	3,659	-
Other payables	6(9),7	94,701	2	141,451	2
Current tax liabilities	4	1,835	-	59,947	1
Lease liabilities, current	4,6(14)	2,446	-	2,665	-
Current portion of long-term loans	4,6(10)	80,000	2	80,000	1
Other current liabilities		2,253	-	2,428	-
Total current liabilities		1,933,301	37	2,187,778	31
Non-current liabilities
Long-term loans	4,6(10)	480,000	9	260,000	4
Deferred tax liabilities	4,6(18)	6,158	-	88,936	1
Lease liabilities, non-current	4,6(14)	5,230	-	7,638	-
Other non-current liabilities	4,6(11)	51,868	1	66,581	1
Total non-current liabilities		543,256	10	423,155	6
Total liabilities		2,476,557	47	2,610,933	37
Equity
Capital	6(12)
Common stock		1,275,887	24	1,275,887	18
Additional paid-in capital	6(12)	1,213,799	23	1,213,799	17
Retained earnings	6(12)
Legal reserve		664,623	13	626,391	9
(Accumulated deficit) Unappropriated earnings		(548,479)	(10)	1,019,163	15
Total retained earnings		116,144	3	1,645,554	24
Other components of equity
Exchange differences on translation of foreign operations		182,657	3	255,366	4
Unrealized gains or losses from financial assets measured at fair value through other comprehensive income		(17,903)	-	(18,601)	-
Gains or losses on hedging instruments		42	-	(31)	-
Total other components of equity		164,796	3	236,734	4
Total equity		2,770,626	53	4,371,974	63
Total liabilities and equity		$5,247,183	100	$6,982,907	100

(The accompanying notes are an integral part of the parent company only financial statements)

English Translation of Parent Company Only Financial Statements Originally Issued in Chinese

GENERAL PLASTIC INDUSTRIAL CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

For the years Ended December 31, 2025 and 2024

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

	Notes	For the Years Ended December 31,
		2025	%	2024	%
Operating revenues	4, 6(13), 7	$1,252,742	100	$1,537,537	100
Operating costs	6(3), (15), 7	(781,457)	(62)	(859,823)	(56)
Gross profit from operations		471,285	38	677,714	44
Unrealized gross profit		(89,078)	(7)	(129,857)	(8)
Realized gross profit		129,857	10	63,297	4
Net gross profit		512,064	41	611,154	40
Operating expenses	6(15)
Selling and marketing expenses		(72,251)	(6)	(81,967)	(5)
General and administrative expenses		(151,597)	(12)	(176,898)	(12)
Research and development expenses		(62,214)	(5)	(68,691)	(5)
Expected credit impairment losses	6(2)	(376)	-	(1,037)	-
Total operating expenses		(286,438)	(23)	(328,593)	(22)
Operating Income		225,626	18	282,561	18
Non-operating income and expenses	6(16), 7
Interest income		828	-	938	-
Other income		92,194	7	88,508	6
Other gains and losses		(23,931)	(2)	24,982	2
Finance costs		(42,824)	(3)	(37,984)	(2)
Share of profit or loss of associates and joint ventures accounted for using the equity method	6(4)	(1,470,208)	(117)	109,346	7
Total non-operating income and expenses		(1,443,941)	(115)	185,790	13
(Loss) Income from continuing operations before income tax		(1,218,315)	(97)	468,351	31
Income tax expense	4, 6(18)	(1,734)	-	(101,203)	(7)
Net (loss) income		(1,220,049)	(97)	367,148	24
Other comprehensive income (loss)	6(17), (18)
Items that may not be reclassified subsequently to profit or loss
Remeasurements of defined benefit plans		12,014	1	18,964	1
Unrealized gains or losses from investments in equity instruments measured at fair value through other comprehensive income		698	-	(4,609)	-
Income tax related to items that may not be reclassified subsequently		(2,403)	-	(3,793)	-
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations		(116,783)	(10)	185,598	12
Gains or losses on hedging instruments		73	-	728	-
Income tax related to items that may be reclassified subsequently		44,074	4	(24,607)	(2)
Total other comprehensive income (loss), net of income tax		(62,327)	(5)	172,281	11
Total comprehensive income		$(1,282,376)	(102)	$539,429	35
(Losses) Earnings per share (NTD)	4, 6(19)
(Losses) Earnings per share-basic		$(9.56)		$2.88
(Losses) Earnings per share-diluted		$(9.56)		$2.85

(The accompanying notes are an integral part of the parent company only financial statements)

English Translation of Parent Company Only Financial Statements Originally Issued in Chinese

GENERAL PLASTIC INDUSTRIAL CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY

For the years Ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

	Common Stock	Additional Paid-in Capital	Retained Earnings			Other Components of Equity			Total Equity
			Legal Reserve	Special Reserve	Unappropriated Earnings (Accumulated deficit)	Exchange Differences on Translation of Foreign Operations	Unrealized Gains or Losses from Financial Assets Measured at Fair Value through Other Comprehensive Income	Gains or Losses on Hedging Instruments
Balance as of January 1, 2024	$1,275,887	$1,213,799	$582,539	$114,265	$885,403	$94,375	$(13,992)	$(759)	$4,151,517
Appropriations and distributions of earnings, 2023:			43,852		(43,852)				-
Legal reserve					(318,972)				(318,972)
Cash dividends					114,265				-
Reversal of Special Reserve				(114,265)	367,148				367,148
Net income in 2024					15,171	160,991	(4,609)	728	172,281
Other comprehensive income (loss), net of income tax in 2024					382,319	160,991	(4,609)	728	539,429
Total comprehensive income (loss)	-	-	-	-	$1,019,163	$255,366	$(18,601)	$(31)	$4,371,974
Balance as of December 31, 2024	$1,275,887	$1,213,799	$626,391	$-	$1,019,163	$255,366	$(18,601)	$(31)	$4,371,974
Balance as of January 1, 2025	$1,275,887	$1,213,799	$626,391	$-	$1,019,163	$255,366	$(18,601)	$(31)	$4,371,974
Appropriations and distributions of earnings, 2024:			38,232		(38,232)				-
Legal reserve					(318,972)				(318,972)
Cash dividends					(1,220,049)				(1,220,049)
Net loss in 2025					9,611	(72,709)	698	73	(62,327)
Other comprehensive income (loss), net of income tax in 2025					(1,210,438)	(72,709)	698	73	(1,282,376)
Total comprehensive income (loss)	-	-	-	-	$(548,479)	$182,657	$(17,903)	$42	$2,770,626
Balance as of December 31, 2025	$1,275,887	$1,213,799	$664,623	$-	$(548,479)	$182,657	$(17,903)	$42	$2,770,626

(The accompanying notes are an integral part of the parent company only financial statements)

English Translation of Parent Company Only Financial Statements Originally Issued in Chinese

GENERAL PLASTIC INDUSTRIAL CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

For the years Ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

	For the Years Ended December 31,			For the Years Ended December 31,
	2025	2024		2025	2024
Cash flows from operating activities:			Cash flows from investing activities:
Net (loss) income before tax	$(1,218,315)	$468,351	Acquisition of financial assets measured at amortized cost	(4)	(3)
Adjustments to reconcile net income before tax to net cash provided by (used in) operating activities:			Return of capital from capital reduction of investees accounted for using the equity method	67,709	135,000
Depreciation	75,107	65,423	Acquisition of property, plant and equipment	(48,501)	(170,900)
Amortization	11,728	12,982	Proceeds from disposal of property, plant and equipment	52	80
Expected credit impairment losses	376	1,037	Increase in refundable deposits	(5)	(2)
Net (gain) loss on financial assets at fair value through profit or loss	(782)	895	Acquisition of intangible assets	(103)	(5,426)
Financial costs	42,824	37,984	Increase in prepayments for equipment	(6,675)	(10,115)
Interest income	(828)	(938)	Dividends received	22,578	-
Share of loss (profit) of subsidiaries, associates and joint ventures	1,470,208	(109,346)	Net cash generated from (used in) investing activities	35,051	(51,366)
Gain on disposal of property, plant and equipment	(22)	(42)	Cash flows from financing activities:
Loss on disposal of intangible assets	1,146	-	Increase in short-term loans	6,320,100	7,908,000
(Gain from price recovery of inventories) loss on market price decline, obsolete and slow-moving inventories	(1,182)	664	Decrease in short-term loans	(6,455,100)	(8,053,000)
Net unrealized gross (profit) loss	(40,779)	66,560	Increase in short term notes and bills payable	260,155	630,775
Changes in operating assets and liabilities:			Decrease in short term notes and bills payable	(260,155)	(710,746)
Decrease in notes receivable	-	26	Proceeds from long-term debt	300,000	431,250
Decrease (increase) in accounts receivable	133,834	(97,527)	Repayments of long-term debt	(80,000)	(262,500)
Decrease (increase) in other receivables	368	(463)	Increase in guaranteed deposits received	-	31,000
Decrease (increase) in inventories	24,613	(23,954)	Payments of lease liabilities	(3,500)	(2,164)
Decrease in prepayments	1,161	1,221	Cash dividends paid	(318,972)	(318,972)
Increase in contract liabilities	1,118	222	Net cash used in financing activities	(237,472)	(346,357)
(Decrease) increase in notes payable	(103)	103	Net increase (decrease) in cash and cash equivalents	90,328	(42,857)
(Decrease) increase in accounts payable	(14,454)	10,809	Cash and cash equivalents at beginning of period	133,043	175,900
(Decrease) increase in other payables	(47,335)	13,658	Cash and cash equivalents at end of period	$223,371	$133,043
(Decrease) increase in other current liabilities	(175)	274
Decrease in defined benefit liabilities	(2,699)	(1,519)
Cash generated from operations	435,809	446,420
Interest received	828	937
Interest paid	(42,189)	(38,202)
Income tax paid	(101,699)	(54,289)
Net cash generated from operating activities	292,749	354,866

(The accompanying notes are an integral part of the parent company only financial statements)

GENERAL PLASTIC INDUSTRIAL CO., LTD
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS
For the years ended December 31, 2025 and 2024
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

History and organization

GENERAL PLASTIC INDUSTRIAL CO., LTD. (“the Company”) was incorporated in July 1978. The Company is mainly engaged in manufacturing and selling of toner cartridges of photocopiers, laser printers, OPC drum gears and other related business.

The Company completed the retroactive handing of public issuance procedures with the consent of the competent securities authorities in May 2000. The Company's shares were listed on the OTC on December 25, 2001 and were listed on the Taiwan Stock Exchange on June 16, 2003. The principal place of business of the Company is located at No.50, Tzu-Chiang Rd., Wu-Chi District, Taichung City, Taiwan.

Date and procedures of authorization of financial statements for issue

The parent company only financial statements of the Company for the years ended December 31, 2025 and 2024 were authorized for issue in accordance with a resolution of the Board of Directors’ meeting on March 12, 2026.

Newly issued or revised standards and interpretations

(1) Changes in accounting policies resulting from applying for the first-time certain standards and amendments.

The Company applied for the first time International Financial Reporting Standards, International Accounting Standards, and Interpretations issued, revised or amended which are recognized by Financial Supervisory Commission (“FSC”) and become effective for annual periods beginning on or after January 1, 2025. The adoption of these new standards and amendments had no material impact on the Company.

(2) Standards or interpretations issued, revised or amended, by International Accounting Standards Board (“IASB”) which have been endorsed by FSC, but not yet adopted by the Company as at the end of the reporting period are listed below.

Items	New, Revised or Amended Standards and Interpretations	Effective Date issued by IASB
a	IFRS 17 “Insurance Contracts”	1 January 2023
b	Amendments to the Classification and Measurement of Financial Instruments – Amendments to IFRS 9 and IFRS 7	1 January 2026
c	Annual Improvements to IFRS Accounting Standards – Volume 11	1 January 2026
d	Contracts Referencing Nature-dependent Electricity – Amendments to IFRS 9 and IFRS 7	1 January 2026

The abovementioned standards and interpretations were issued by IASB and endorsed by FSC so that they are applicable for annual periods beginning on or after January 1, 2026. The new or amended standards and interpretations have no material impact on the Company.

(3) Standards or interpretations issued, revised or amended, by IASB which are not endorsed by FSC, but not yet adopted by the Company as at the end of the reporting period are listed below.

Items	New, Revised or Amended Standards and Interpretations	Effective Date issued by IASB
a	IFRS 10 “Consolidated Financial Statements” and IAS 28 “Investments in Associates and Joint Ventures” — Sale or Contribution of Assets between an Investor and its Associate or Joint Ventures	To be determined by IASB
b	IFRS 18 “Presentation and Disclosure in Financial Statements”	1 January 2027 (Note)
c	Disclosure Initiative – Subsidiaries without Public Accountability: Disclosures (IFRS 19)	1 January 2027
d	Translation to a Hyperinflationary Presentation Currency (Amendments to IAS 21 and IAS 29)	1 January 2027

Note: On September 25, 2025, the FSC announced in a press release that Taiwan will adopt IFRS 18 in 2028.

The abovementioned standards and interpretations issued by IASB have not yet endorsed by FSC at the date when the Company's financial statements were authorized for issue, the local effective dates are to be determined by FSC. As the Company is still currently determining the potential impact of the new or amended standards and interpretations listed under (b), it is not practicable to estimate their impact on the Company at this point in time. The remaining new or amended standards and interpretations have no material impact on the Company.

Summary of material accounting policies

(1) Statement of compliance

The parent company only financial statements of the Company for the years ended December 31, 2025 and 2024 have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (“the Regulations”).

(2) Basis of preparation

The Company prepared the parent company only financial statements in accordance with Article 21 of the Regulation, which provided that the profit or loss and other comprehensive income for the period presented in the parent company only financial statements shall be the same as the profit or loss and other comprehensive income attributable to stockholders of the parent presented in the consolidated financial statements for the period, and the total equity presented in the parent company only financial statements shall be the same as the equity attributable to the parent company presented in the consolidated financial statements. Therefore, the Company accounted for its investments in subsidiaries using the equity method and, accordingly, made necessary adjustments.

The parent company only financial statements have been prepared on a historical cost basis, except for financial instruments that have been measured at fair value. The parent company only financial statements are expressed in thousands of New Taiwan Dollars (“NT$”) unless otherwise stated.

(3) Foreign currency transactions

The Company’s parent company only financial statements are presented in NT$, which is also the Company’s functional currency. Items included in the financial statements are measured using that functional currency.

Transactions in foreign currencies are initially recorded by the Company at the functional currency rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency closing rate of exchange ruling at the reporting date. Non-monetary items measured at fair value in foreign currencies are translated using the exchange rates at the date when the fair value is determined. Non-monetary items that are measured at historical cost in foreign currencies are translated using the exchange rates as of the dates of the initial transactions.

All exchange differences arising on the settlement of monetary items or on translating monetary items are taken to profit or loss in the period in which they arise except for the following:

A. Exchange differences arising from foreign currency borrowings for an acquisition of a qualifying asset to the extent that they are regarded as an adjustment to interest costs are included in the borrowing costs that are eligible for capitalization.

B. Foreign currency items within the scope of IFRS 9 Financial Instruments are accounted for based on the accounting policy for financial instruments.

C. Exchange differences arising on a monetary item that is part of a reporting entity’s net investment in a foreign operation are recognized initially in other comprehensive income and reclassified from equity to profit or loss upon disposal of the net investment.

When a gain or loss on a non-monetary item is recognized in other comprehensive income, any exchange component of that gain or loss is recognized in other comprehensive income. When a gain or loss on a non-monetary item is recognized in profit or loss, any exchange component of that gain or loss is recognized in profit or loss.

(4) Translation of financial statements in foreign currency

The assets and liabilities of foreign operations are translated into NTD at the closing rate of exchange prevailing at the reporting date, and their income and expenses are translated at an average exchange rate for the period. The exchange differences arising on the translation are recognized in other comprehensive income. On disposal of a foreign operation, the cumulative amount of the exchange differences relating to that foreign operation, recognized in other comprehensive income and accumulated in the separate component of equity, is reclassified from equity to profit or loss when the gain or loss on disposal is recognized. When partial disposal involves the loss of control of a subsidiary that includes a foreign operation and when the retained interest after partial disposal of an interest in a joint venture or a partial disposal of an interest in an associate that includes a foreign operation is a financial asset that includes a foreign operation, the cumulative amount of the exchange differences recognized in other comprehensive income is reclassified to profit or loss upon the disposal of a foreign operation.

On partial disposal of a subsidiary that includes a foreign operation that does not result in a loss of control, the proportionate share of the cumulative amount of the exchange differences recognized in other comprehensive income is re-attributed to the non-controlling interests in that foreign operation. On partial disposal of an associate or joint venture that includes a foreign operation that does not result in a loss of significant influence or joint control, only the proportionate share of the cumulative amount of the exchange differences recognized in other comprehensive income is reclassified to profit or loss.

Any goodwill and any fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and expressed in its functional currency.

(5) Current and non-current distinction

An asset is classified as current when:

A. The Company expects to realize the asset, or intends to sell or consume it, in its normal operating cycle;
B. The Company holds the asset primarily for the purpose of trading;
C. The Company expects to realize the asset within twelve months after the reporting period;
D. The asset is cash or cash equivalent unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is classified as current when:

A. The Company expects to settle the liability in its normal operating cycle;
B. The Company holds the liability primarily for the purpose of trading;
C. The liability is due to be settled within twelve months after the reporting period;
D. The Company does not have the right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period.

All other liabilities are classified as non-current.

(6) Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, demand deposits and short-term, highly liquid time deposits or investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

(7) Financial instruments

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument.

Financial assets and financial liabilities within the scope of IFRS 9 Financial Instruments are recognized initially at fair value plus or minus, in the case of a financial asset or financial liability not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial assets or financial liabilities.

A. Financial instruments: Recognition and Measurement

The Company accounts for regular way purchase or sales of financial assets on the trade date.

The Company classified financial assets as subsequently measured at amortized cost considering both factors below:

(a) the Company’s business model for managing the financial assets and
(b) the contractual cash flow characteristics of the financial asset.

Financial assets measured at amortized cost

A financial asset is measured at amortized cost if both of the following conditions are met and presented as notes receivable, accounts receivable, financial assets measured at amortized cost and other receivables etc., on balance sheet as at the reporting date:

(a) the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and
(b) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Such financial assets are subsequently measured at amortized cost (the amount at which the financial asset is measured at initial recognition minus the principal repayments, plus or minus the cumulative amortization using the effective interest method of any difference between the initial amount and the maturity amount and adjusted for any loss allowance) and is not part of a hedging relationship. A gain or loss is recognized in profit or loss when the financial asset is derecognized, through the amortization process or in order to recognize the impairment gains or losses.

Interest revenue is calculated by using the effective interest method. This is calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for:

(a) purchased or originated credit-impaired financial assets. For those financial assets, the Company applies the credit-adjusted effective interest rate to the amortized cost of the financial asset from initial recognition.

(b) financial assets that are not purchased or originated credit-impaired financial assets but subsequently have become credit-impaired financial assets. For those financial assets, the Company applies the effective interest rate to the amortized cost of the financial asset in subsequent reporting periods.

B. Impairment of financial assets

The Company recognizes a loss allowance for expected credit losses on financial asset measured at amortized cost.

The Company measures expected credit losses of a financial instrument in a way that reflects:

(a) an unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes;

(b) the time value of money; and

(c) reasonable and supportable information that is available without undue cost or effort at the reporting date about past events, current conditions and forecasts of future economic conditions.

The loss allowance is measures as follows:

(a) At an amount equal to 12-month expected credit losses: the credit risk on a financial asset has not increased significantly since initial recognition or the financial asset is determined to have low credit risk at the reporting date. In addition, the Company measures the loss allowance at an amount equal to lifetime expected credit losses in the previous reporting period, but determines at the current reporting date that the credit risk on a financial asset has increased significantly since initial recognition is no longer met.

(b) At an amount equal to the lifetime expected credit losses: the credit risk on a financial asset has increased significantly since initial recognition or financial asset that is purchased or originated credit-impaired financial asset.

(c) For accounts receivable or contract assets arising from transactions within the scope of IFRS 15, the Company measures the loss allowance at an amount equal to lifetime expected credit losses.

(d) For lease receivables arising from transactions within the scope of IFRS 16, the Company measures the loss allowance at an amount equal to lifetime expected credit losses.

At each reporting date, the Company needs to assess whether the credit risk on a financial asset has increased significantly since initial recognition by comparing the risk of a default occurring at the reporting date and the risk of default occurring at initial recognition. Please refer to Note 12 for further details on credit risk.

C. Derecognition of financial assets

A financial asset is derecognized when:

(a) The rights to receive cash flows from the asset have expired;

(b) The Company has transferred the asset and substantially all the risks and rewards of the asset have been transferred;

(c) The Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

On derecognition of a financial asset in its entirety, the difference between the carrying amount and the consideration received or receivable including any cumulative gain or loss that had been recognized in other comprehensive income, is recognized in profit or loss.

D. Financial liabilities and equity

Financial liabilities

Financial liabilities within the scope of IFRS 9 Financial Instruments are classified as financial liabilities at fair value through profit or loss or financial liabilities measured at amortized cost upon initial recognition.

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated as at fair value through profit or loss. A financial liability is classified as held for trading if:

(a) It is acquired or incurred principally for the purpose of selling or repurchasing it in the near term;

(b) On initial recognition it is part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of short-term profit-taking; or

(c) It is a derivative (except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument).

If a contract contains one or more embedded derivatives, the entire hybrid (combined) contract may be designated as a financial liability at fair value through profit or loss; or a financial liability may be designated as at fair value through profit or loss when doing so results in more relevant information, because either:

(a) It eliminates or significantly reduces a measurement or recognition inconsistency; or

(b) A Company of financial liabilities or financial assets and financial liabilities is managed and its performance is evaluated on a fair value basis, in accordance with a documented risk management or investment strategy, and information about the Company is provided internally on that basis to the key management personnel.

Gains or losses on the subsequent measurement of liabilities at fair value through profit or loss including interest paid are recognized in profit or loss.

Financial liabilities at amortized cost

Financial liabilities measured at amortized cost include interest bearing loans and borrowings that are subsequently measured using the effective interest rate method after initial recognition. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the effective interest rate method amortization process.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or transaction costs.

Derecognition of financial liabilities

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.

When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified (whether or not attributable to the financial difficulty of the debtor), such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts and the consideration paid or payable, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount reported in the balance sheet if, and only if, there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously.

(8) Derivative instrument

The Company uses derivative instruments to hedge its foreign currency risks and interest rate risks. A derivative is classified in the balance sheet as financial assets or liabilities at fair value through profit or loss except for derivatives that are designated as and effective hedging instruments which are classified as financial assets or liabilities for hedging.

Derivative instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. The changes in fair value of derivatives are taken directly to profit or loss, except for the effective portion of hedges, which is recognized in either profit or loss or equity according to types of hedges used.

The Company’s expecting transaction complies with cash flow hedge. For the effective portion of the hedge, changes in the fair value of the hedging instrument are recognized in other comprehensive income. For the ineffective portion of the hedge, changes in the fair value of the hedging instrument (if any) is recognized directly in profit or loss.

The accumulated gains and losses recorded in equity should be reclassified to profit or loss in the same period or periods when the hedged expected future cash flows affect profit or loss. A hedged forecast transaction for a non-financial asset or a nonfinancial liability for which fair value hedge accounting is applied, the carrying value of that item must be adjusted for the accumulated gains or losses recognized directly in equity.

When a forecast transaction or a firm commitment is expected not to occur, the accumulated gain or loss under equity needs to be reclassified to profit or loss. If the hedging instrument has been sold, terminated, canceled, or implemented and not replaced or extended, or the originally designated risk management objective has been canceled, the amount recognized under equity should be put in equity before the forecast transaction or a firm commitment affect profit or loss.

(9) Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

A. In the principal market for the asset or liability, or
B. In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible to by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

(10) Inventories

The inventory value includes costs incurred in bringing the inventory to its present location and condition. Raw materials and goods are stated at weighted average of actual purchase costs; finished goods and work in progress are stated at the cost of direct materials and labor and a proportion of manufacturing overheads based on normal operating capacity. Inventories are valued at lower of cost and net realizable value item by item. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale. Allowance are also estimated and recognized appropriately for slow moving and damaged inventories.

(11) Investments accounted for using the equity method

According to Article 21 of the Regulations, the Company’s investment in subsidiaries was presented as “Investments accounted for using the equity method and made necessary adjustments. The profit or loss during the period and other comprehensive income presented in the parent company only financial statements shall be the same as the allocations of profit or loss during the period and of other comprehensive income attributable to shareholders of the parent presented in the financial statements prepared on a consolidated basis, and the shareholders’ equity presented in the parent company only financial statements shall be the same as the equity attributable to shareholders of the parent presented in the financial statements prepared on a consolidated basis. The adjustments are considered the difference between investment in subsidiaries in consolidated financial statements prepared in accordance with IFRS 10 Consolidated Financial Statements and the application of IFRS to different reporting entities. The adjustments are made by debiting or crediting “Investment accounted for using the equity method”, “Share of profit or loss of subsidiaries, associates and joint ventures accounted for using the equity method” or “Share of other comprehensive profit or loss of subsidiaries, associates and joint ventures accounted for using the equity method” etc.

The Company’s investment in its associate is accounted for using the equity method other than those that meet the criteria to be classified as held for sale. An associate is an entity over which the Company has significant influence.

Under the equity method, the investment in the associate is carried in the balance sheet at cost and adjusted thereafter for the post-acquisition change in the Company’s share of net assets of the associate. After the interest in the associate is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the Company has incurred legal or constructive obligations or made payments on behalf of the associate. Unrealized gains and losses resulting from transactions between the Company and the associate are eliminated to the extent of the Company’s related interest in the associate.

When changes in the net assets of an associate occur and not those that are recognized in profit or loss or other comprehensive income and do not affect the Company’s percentage of ownership interests in the associate, the Company recognizes such changes in equity based on its percentage of ownership interests. The resulting capital surplus recognized will be reclassified to profit or loss at the time of disposing the associate on a pro-rata basis.

When the associate issues new stock, and the Company’s interest in an associate is reduced or increased as the Company fails to acquire shares newly issued in the associate proportionately to its original ownership interest, the increase or decrease in the interest in the associate is recognized in “Additional paid-in Capital” and “Investment accounted for using the equity method”. When the interest in the associate is reduced, the cumulative amounts previously recognized in other comprehensive income are reclassified to profit or loss or other appropriate items. The aforementioned capital surplus recognized is reclassified to profit or loss on a pro-rata basis when the Company disposes the associate.

The financial statements of the associate are prepared for the same reporting period as the Company. Where necessary, adjustments are made to bring the accounting policies in line with those of the Company.

The Company determines at each reporting date whether there is any objective evidence that the investment in the associate is impaired in accordance with IAS 28 Investments in Associates and Joint Ventures. If this is the case the Company calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value and recognizes the amount in the ‘share of profit or loss of an associate’ in the statement of comprehensive income in accordance with IAS 36 Impairment of Assets. In determining the value in use of the investment, the Company estimates:

The present value of the estimated future cash flows expected to arise from dividends to be received from the investment and from its ultimate disposal.

Because goodwill that forms part of the carrying amount of an investment in an associate is not separately recognized, it is not tested for impairment separately by applying the requirements for impairment testing goodwill in IAS 36 Impairment of Assets.

Upon loss of significant influence over the associate, the Company measures and recognizes any retaining investment at its fair value. Any difference between the carrying amount of the associate upon loss of significant influence and the fair value of the retaining investment and proceeds from disposal is recognized in profit or loss. Furthermore, if an investment in an associate becomes an investment in a joint venture or an investment in a joint venture becomes an investment in an associate, the entity continues to apply the equity method and does not remeasure the retained interest.

(12) Property, plant and equipment

Property, plant and equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Such cost includes the cost of dismantling and removing the item and restoring the site on which it is located and borrowing costs for construction in progress if the recognition criteria are met. Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately. When significant parts of property, plant and equipment are required to be replaced in intervals, the Company recognizes such parts as individual assets with specific useful lives and depreciation, respectively. The carrying amount of those parts that are replaced is derecognized in accordance with the derecognition provisions of IAS 16 Property, plant and equipment. When a major inspection is performed, its cost is recognized in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognized in profit or loss as incurred.

Depreciation is calculated on a straight-line basis over the estimated useful lives of the following assets:

Item	Estimated useful lives
Buildings	5~50 years
Machinery and equipment	2~20 years
Transportation equipment	4~12 years
Office equipment	2~10 years
Other equipment	2~12 years

An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising from derecognition of the asset is recognized in profit or loss.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate. The differences resulted from previous estimation are regarded as changes in accounting estimates.

(13) Investment property

The Company’s owned investment properties are measured initially at cost, including transaction costs. The carrying amount includes the cost of replacing part of an existing investment property at the time that cost is incurred if the recognition criteria are met and excludes the costs of day-to-day servicing of an investment property. Subsequent to initial recognition, other than those that meet the criteria to be classified as held for sale (or are included in a disposal group that is classified as held for sale) in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, investment properties are measured using the cost model in accordance with the requirements of IAS 16 Property, plant and equipment for that model. If investment properties are held by a lessee as right-of-use assets and is not held for sale in accordance with IFRS 5, investment properties are measured in accordance with the requirements of IFRS 16.

Depreciation is calculated on a straight-line basis over the estimated economic lives of the following assets:

Item	Estimated useful lives
Buildings	5~50 years

Investment properties are derecognized when either they have been disposed of or when the investment property is permanently withdrawn from use and no future economic benefit is expected from its disposal. The difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss in the period of derecognition.

The Company transfers to or from investment properties when there is a change in use for these assets. Properties are transferred to or from investment properties when the properties meet, or cease to meet, the definition of investment property and there is evidence of the change in use.

(14) Leases

The Company assesses whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset for a period of time, the Company assesses whether, throughout the period of use, has both of the following:

A. the right to obtain substantially all of the economic benefits from use of the identified asset; and
B. the right to direct the use of the identified asset.

For a contract that is, or contains, a lease, the Company accounts for each lease component within the contract as a lease separately from non-lease components of the contract. For a contract that contains a lease component and one or more additional lease or non-lease components, the Company allocates the consideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components. The relative stand-alone price of lease and non-lease components shall be determined on the basis of the price the lessor, or a similar supplier, would charge the Company for that component, or a similar component, separately. If an observable stand-alone price is not readily available, the Company estimates the stand-alone price, maximising the use of observable information.

The Company as a lessee

Except for leases that meet and elect short-term leases or leases of low-value assets, the Company recognizes right-of-use asset and lease liability for all leases which the Company is the lessee of those lease contracts.

At the commencement date, the Company measures the lease liability at the present value of the lease payments that are not paid at that date. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses its incremental borrowing rate. At the commencement date, the lease payments included in the measurement of the lease liability comprise the following payments for the right to use the underlying asset during the lease term that are not paid at the commencement date:

A. fixed payments (including in-substance fixed payments), less any lease incentives receivable;
B. variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;
C. amounts expected to be payable by the lessee under residual value guarantees;
D. the exercise price of a purchase option if the Company is reasonably certain to exercise that option; and
E. payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease.

After the commencement date, the Company measures the lease liability on an amortised cost basis, which increases the carrying amount to reflect interest on the lease liability by using an effective interest method; and reduces the carrying amount to reflect the lease payments made.

At the commencement date, the Company measures the right-of-use asset at cost. The cost of the right-of-use asset comprises:

A. the amount of the initial measurement of the lease liability;
B. any lease payments made at or before the commencement date, less any lease incentives received;
C. any initial direct costs incurred by the lessee; and
D. an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease.

For subsequent measurement of the right-of-use asset, the Company measures the right-of-use asset at cost less any accumulated depreciation and any accumulated impairment losses. That is, the Company measures the right-of-use applying a cost model.

If the lease transfers ownership of the underlying asset to the Company by the end of the lease term or if the cost of the right-of-use asset reflects that the Company will exercise a purchase option, the Company depreciates the right-of-use asset from the commencement date to the end of the useful life of the underlying asset. Otherwise, the Company depreciates the right-of-use asset from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term.

The Company applies IAS 36 Impairment of Assets to determine whether the right-of-use asset is impaired and to account for any impairment loss identified.

Except for those leases that the Company accounted for as short-term leases or leases of low-value assets, the Company presents right-of-use assets and lease liabilities in the balance sheet and separately presents lease-related interest expense and depreciation charge in the statements of comprehensive income.

For short-term leases or leases of low-value assets, the Company elects to recognize the lease payments associated with those leases as an expense on either a straight-line basis over the lease term or another systematic basis.

The Company as a lessor

At inception of a contract, the Company classifies each of its leases as either an operating lease or a finance lease. A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership of an underlying asset. At the commencement date, the Company recognizes assets held under a finance lease in its balance sheet and present them as a receivable at an amount equal to the net investment in the lease.

For a contract that contains lease components and non-lease components, the Company allocates the consideration in the contract applying IFRS 15.

The Company recognizes lease payments from operating leases as rental income on either a straight-line basis or another systematic basis. Variable lease payments for operating leases that do not depend on an index or a rate are recognized as rental income when incurred.

(15) Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is its fair value as of the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses, if any. Internally generated intangible assets which fail to meet the recognition criteria are not capitalized and expenditure are reflected in profit or loss in the period incurred.

The useful lives of intangible assets are assessed as either finite or indefinite.

Intangible assets with finite useful lives are amortized over the useful life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at the end of each fiscal year. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset is accounted for by changing the amortization period or method, as appropriate, and is treated as changes in accounting estimates.

Intangible assets with indefinite useful lives are not amortized, but are tested for impairment annually, either individually or at the cash-generating unit (CGU) level. The assessment of indefinite useful life is reviewed annually to determine whether the indefinite useful life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis.

Gains or losses arising from derecognition of an intangible asset are recognized in profit or loss.

Accounting policies of the Company’s intangible assets are summarized as follows:

	Computer software	Other intangible assets
Useful lives	1~10 years	6~26 years
Method of Amortization	Amortized on a straight-line basis	Amortized on a straight-line basis
Acquired from	Exterally acquired	Exterally acquired

(16) Impairment of non-financial assets

The Company assesses at the end of each reporting period whether there is any indication that an asset in the scope of IAS 36 Impairment of Assets may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Company completes impairment testing for an individual asset or the CGU to which the individual assets belong. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s (“CGU”) fair value less costs to sell and its value in use.

For assets excluding goodwill, an assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased. If such indication exists, the Company estimates the asset’s or cash-generating unit’s recoverable amount. A previously recognized impairment loss is reversed only if there has been an increase in the estimated service potential of an asset which in turn increases the recoverable amount. However, the reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years.

A cash generating unit, or groups of cash-generating units, to which goodwill has been allocated is tested for impairment annually at the same time, irrespective of whether there is any indication of impairment. If an impairment loss is to be recognized, it is first allocated to reduce the carrying amount of any goodwill allocated to the cash generating unit (group of units), then to the other assets of the unit (group of units) pro rata on the basis of the carrying amount of each asset in the unit (group of units). Impairment losses relating to goodwill cannot be reversed in future periods for any reason.

An impairment loss of continuing operations or a reversal of such impairment loss is recognized in profit or loss.

(17) Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probably that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Where the Company expects some or all of a provision to be reimbursed, the reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

(18) Revenue recognition

The Company’s revenue being recognized when control of the products or rendering of services is transferred to the customers to satisfy the performance obligation. The accounting policies are explained as follows:

Sale of goods

The Company manufactures and sells goods. Sales are recognized when control of the goods is transferred to the customers and the goods are delivered to the customers (i.e. when the customer has the ability to direct the use of, and obtain substantially all of the remaining benefits from the goods). The Company estimates the discounts using the expected value method based on historical experiences. Revenue is only recognized to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur and when the uncertainty associated with the variable consideration is subsequently resolved.

When another party is involved in providing goods or services to customers, if the Company controls the goods or services promised to customers before the transfer, it acts as a principal; if the Company’s performance obligation is to arrange for the goods or services provided by another party, it acts as an agent. When acting as a principal, the Company recognizes as revenue the total amount of consideration to which it expects to be entitled from transferring the goods or services; when acting as an agent, the Company recognizes as revenue the amount of any fee or commission to which it expects to be entitled from providing the goods or services. The fee or commission of the Company may be the net amount of consideration, which represents the amount retained by the Company after paying the other party for the goods or services.

The credit period of the Company’s sale of goods is from 30 to 180 days. For most of the contracts, when the Company transfers the products to customers and has a right to an amount of consideration that is unconditional, these contracts are recognized as accounts receivable. The Company usually collects the payments shortly after transfer of products to customers; therefore, there is no significant financing component to the contract. For some of the contracts, the Company has transferred the goods to customers but does not has a right to an amount of consideration that is unconditional, these contacts should be presented as contract assets. Besides, in accordance with IFRS 9, the Company measures the loss allowance for a contract asset at an amount equal to the lifetime expected credit losses. For certain contracts, as the Company receives a portion of the consideration from customers in advance upon contract signing and is obligated to provide services subsequently, such amounts are recognized as contract liabilities.

(19) Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective assets. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

(20) Government grants

Government grants are recognized where there is reasonable assurance that the grant will be received and all attached conditions will be complied with. Where the grant relates to an asset, it is recognized as deferred income and released to income in equal amounts over the expected useful life of the related asset. When the grant relates to an expense item, it is recognized as income over the period necessary to match the grant on a systematic basis to the costs that it is intended to compensate.

(21) Post-employment benefits

All regular employees of the Company are entitled to a pension plan that is managed by an independently administered pension fund committee. Fund assets are deposited under the committee’s name in the specific bank account and hence, not associated with the Company. Therefore, fund assets are not included in the parent company only financial statements.

For the defined contribution plan, the Company will make a monthly contribution and recognize expenses for the current period of no less than 6% of the monthly wages of the employees subject to the plan. The Company recognizes expenses for the defined contribution plan in the period in which the contribution becomes due.

Post-employment benefit plan that is classified as a defined benefit plan uses the Projected Unit Credit Method to measure its obligations and costs based on actuarial assumptions. Re-measurements, comprising of the effect of the actuarial gains and losses, the effect of the asset ceiling (excluding net interest) and the return on plan assets, excluding net interest, are recognized as other comprehensive income with a corresponding debit or credit to retained earnings in the period in which they occur. Past service costs are recognized in profit or loss on the earlier of:

A. The date of the plan amendment or curtailment, and
B. The date that the Company recognizes restructuring-related costs or termination benefits.

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset, both as determined at the start of the annual reporting period, taking account of any changes in the net defined benefit liability (asset) during the period as a result of contribution and benefit payment.

(22) Income taxes

Income tax expense (income) is the aggregate amount included in the determination of profit or loss for the period in respect of current tax and deferred tax.

Current income tax

Current income tax assets and liabilities for the current and prior periods are measured, using the tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. Current income tax relating to items recognized in other comprehensive income or directly in equity is recognized in other comprehensive income or equity and not in profit or loss.

The income tax for undistributed earnings is recognized as income tax expense in the subsequent year when the distribution proposal is approved by the Shareholders' meeting.

Deferred income tax

Deferred income tax is provided on temporary differences between the tax bases of assets and liabilities and their carrying amounts in financial statement at the reporting date.

Deferred tax liabilities are recognized for all taxable temporary differences, except:

A. Where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination; at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and at the time of the transaction, does not give rise to equal taxable and deductible temporary differences.

B. In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

Deferred tax assets are recognized for all deductible temporary differences, carryforward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carryforward of unused tax credits and unused tax losses can be utilized, except:

A. Where the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination; at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and at the time of the transaction, does not give rise to equal taxable and deductible temporary differences.

B. In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted at the reporting date.

The measurement of deferred tax assets and deferred tax liabilities reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss. Deferred tax items are recognized in correlation to the underlying transaction either in other comprehensive income or directly in equity. Deferred tax assets are reassessed at each reporting date and are recognized accordingly.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

Significant accounting judgements, estimates and assumptions

The preparation of the Company's parent company only financial statements requires management to make judgements, estimates and assumptions at the end of the reporting period that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities. However, uncertainty about these assumption and estimate could result in outcomes that require a material adjustment to the carrying amount of the asset or liability affected in future periods.

(1) Judgement

In the process of applying the Company’s accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognized in the consolidated financial statements:

Investment property

Certain properties of the Company comprise a portion that is held to earn rentals or for capital appreciation and another portion that is owner-occupied. If these portions could be sold separately, the Company accounts for the portions separately as investment property and property, plant and equipment. If the portions could not be sold separately, the property is classified as investment property in its entirety only if the portion of owner-occupied is not significant to total property.

(2) Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that would have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next fiscal year are discussed below.

A. Impairment of goodwill

An impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs to sell and its value in use. The fair value less costs to sell calculation is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date less incremental costs that would be directly attributable to the disposal of the asset or cash generating unit. The value in use calculation is based on a discounted cash flow model. The cash flows projections are derived from the budget for the next five years and do not include restructuring activities that the Company is not yet committed to or significant future investments that will enhance the asset’s performance of the cash generating unit being tested. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes. The key assumptions used to determine the recoverable amount for the different cash generating units, including a sensitivity analysis, are further explained in Note 6.

B. Income tax

Uncertainties exist with respect to the interpretation of complex tax regulations and the amount and timing of future taxable income. Given the wide range of international business relationships and the long-term nature and complexity of existing contractual agreements, differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to tax income and expense already recorded. The Company establishes provisions, based on reasonable estimates, for possible consequences of audits by the tax authorities of the respective counties in which it operates. The amount of such provisions is based on various factors, such as experience of previous tax audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority. Such differences of interpretation may arise on a wide variety of issues depending on the conditions prevailing in the respective Company entities' domicile.

Deferred tax assets are recognized for all carryforward of unused tax losses and unused tax credits and deductible temporary differences to the extent that it is probable that taxable profit will be available or there are sufficient taxable temporary differences against which the unused tax losses, unused tax credits or deductible temporary differences can be utilized. The amount of deferred tax assets determined to be recognized is based upon the likely timing and the level of future taxable profits and taxable temporary differences together with future tax planning strategies.

C. Accounts receivable - estimation of impairment loss

The Company estimates the impairment loss of accounts receivable at an amount equal to lifetime expected credit losses. The credit loss is the present value of the difference between the contractual cash flows that are due under the contract (carrying amount) and the cash flows that are expected to receive (by evaluating forward looking information). However, as the impact from the discounting of short-term receivables is not material, the credit loss is measured by the undiscounted cash flows. Please refer to Note 6 for more details.

D. Inventory valuation

Estimates of net realizable value of inventories take into consideration that inventories may be damaged, become wholly or partially obsolete, or their selling prices have declined. The estimates are based on the most reliable evidence available at the time the estimates are made. Please refer to Note 6 for more details.

Contents of significant accounts

(1) Cash and cash equivalents

	As of December 31
	2025	2024
Checking and savings accounts	$223,125	$132,848
Cash on hand	246	195
Total	$223,371	$133,043

The aforementioned cash and cash equivalents were not pledged.

(2) Accounts receivable and expected credit impairment losses

A. Accounts receivable

	As of December 31
	2025	2024
Accounts receivable	$93,450	$124,252
Less: loss allowance	(3,481)	(7,522)
Subtotal	89,969	116,730
Accounts receivable- related parties	182,850	290,299
Total	$272,819	$407,029

Accounts receivable were not pledged.

The Company's collection period typically ranges from 30 to 120 days. The total carrying amount as of December 31, 2025 and 2024 were NT$276,300 thousand and NT$414,551 thousand, respectively. Please refer to Note 12 for more details on credit risk.

B. Expected credit impairment losses

	For the years ended December 31
	2025	2024
Operating expense- expected credit impairment losses
Accounts receivable	$376	$1,037

Please refer to Note 12 for more details on credit risk.

The Company measures the loss allowance of its receivables (including notes receivable and accounts receivable) based on the lifetime expected credit losses. The assessment of the loss allowance is as follows:

(a) As of December 31, 2025

	Not yet due (note)	Overdue							Total
		<=30 days	31-60 days	61-90 days	91-120 days	121-150 days	151-180 days	<=181 days
Gross carrying amount	$261,992	$9,138	$2,908	$430	$1	$-	$-	$1,887	$276,356
Loss ratio	0.44%	2.52%	24.36%	72.73%	82.05%	100%	100%	100%
Lifetime expected credit losses	(342)	(230)	(708)	(313)	(1)	-	-	(1,887)	(3,481)
Carrying amount	$261,650	$8,908	$2,200	$117	$-	$-	$-	$-	$272,875

Note: The Company’s notes receivable are not overdue.

(b) As of December 31, 2024

	Not yet due (note)	Overdue							Total
		<=30 days	31-60days	61-90 days	91-120 days	121-150 days	151-180 days	<=181 days
Gross carrying amount	$392,623	$9,534	$6,615	$1,168	$-	$-	$-	$4,667	$414,607
Loss ratio	0.11%	1.30%	26.78%	72.74%	100%	100%	100%	100%
Lifetime expected credit losses	(110)	(124)	(1,771)	(850)	-	-	-	(4,667)	(7,522)
Carrying amount	$392,513	$9,410	$4,844	$318	$-	$-	$-	$-	$407,085

Note: The Company’s notes receivable are not overdue.

The movement in the provision for impairment of notes receivable and accounts receivable for the years ended of December 31, 2025 and 2024 were as follows:

	Notes receivable	Accounts receivable
January 1, 2025	$-	$7,522
Additions for the current period	-	376
Written off as uncollectible	-	(4,417)
December 31, 2025	$-	$3,481
January 1, 2024	$-	$6,536
Additions for the current period	-	1,037
Written off as uncollectible	-	(51)
December 31, 2024	$-	$7,522

(3) Inventories

	As of December 31
	2025	2024
Raw materials	$89,467	$104,427
Merchandises	40,459	39,999
Finished goods	36,087	43,104
Work in progress	15,550	17,464
Total	$181,563	$204,994
	For the years ended December 31
---	---	---
	2025	2024
Recognized as cost of inventories sold
Cost of inventories	$781,457	$859,823
Loss on scrapped inventories	5,940	7,177
(Gain from price recovery of inventories) loss on market price decline, obsolete and slow-moving inventories	(1,182)	664
Gain on inventory surplus	(2,244)	(2,560)

No inventories were pledged. The reversal of write-down of inventories was due to destocking.

(4) Investments accounted for using the equity method

The following table lists the investments accounted for using the equity method of the Company:

	As of December 31
	2025		2024
Investees	Amount	%	Amount	%
GPI Co.(Samoa) Ltd..	$940,534	100%	$973,382	100%
JIOU FU CO., LTD.	573,470	100%	592,304	100%
GPIKT DE, INC.	1,610,944	100%	3,191,346	100%
GPIKT (BVI) CO., LTD.	31	100%	33	100%
WEKARE CO., LTD.	888	100%	996	100%
TJ OFFICE SOLUTION CO., LTD	34	100%	3,568	100%
Total	$3,125,901		$4,761,629

A. On March 29, 2011, the Company established GPI Co.(Samoa) Ltd. to expand its overseas business. The Company invested a total of NT$16,297 thousand in 2015. As of December 31, 2025, the total investment in GPI Co.(Samoa) Ltd. amounted to NT$595,932 thousand.

B. On October 15, 2006, in accordance with the overall business planning, the Company establish a wholly owned subsidiary – JIOU FU CO., LTD. by investing NT$100,000 thousand for 10,000,000 shares at $10 per share. Subsequently, the Company made additional investments of NT$270,000 thousand and NT$330,000 thousand on July 19, 2007 and September 2, 2011, respectively. The subsidiary processed a capital reduction and returned capital of NT$135,000 thousand and NT$65,000 thousand on May 10, 2024 and May 9, 2025, respectively. As of December 31, 2025, the total investment in JIOU FU CO., LTD. amounted to NT$500,000 thousand.

C. On July 5, 2016, in accordance with the overall business planning, the Board of Directors of the Company approved a resolution to increase investments of NT$9,645 thousand (USD300 thousand) in GPI USA, INC. Subsequently, the Company increased its investment by NT$5,693 thousand (USD200 thousand) on November 11, 2022. After the increase, the total investment in GPI USA, INC. amounted to NT$15,681 thousand. However, on August 22, 2024, the Board of Directors approved the resolution to work on dissolution and liquidation of GPI USA, INC, and GPI USA, INC. remitted capital back to the Company on November 3, 2024.

D. On December 28, 2017, the Company invested in the establishment of GPIKT (BVI) CO., LTD. and GPIKT DE, INC. to integrate the business of cartridges. The original investments were NT$30 thousand and NT$2,986 thousand, respectively. On January 8, 2018, the Company further invested NT$2,855,680 thousand in GPIKT DE, INC. to acquire Katun Holdings, LP. in the USA. As of December 31, 2025, the total investments in GPIKT (BVI) CO., LTD. and GPIKT DE, INC. amounted to NT$30 thousand and NT$2,858,666 thousand, respectively.

E. On December 25, 2020, the Board of Directors of the Company approved the resolution to establish a wholly owned subsidiary – WEKARE CO., LTD. to expand the Company’s business scope. The Company prepaid NT$5,000 thousand for the investment on December 31, 2020, and the establishment registration of WEKARE CO., LTD. was completed on January 5, 2021. As of December 31, 2025, the total investment in WEKARE CO., LTD. amounted to NT$20,000 thousand.

F. On March 25, 2020, in order to develop new business, the Board of Directors of the Company approved a resolution to acquire entire equity of TJ OFFICE SOLUTION CO., LTD. (“TJ”), which is engaged in renting and selling photocopiers in Cambodia, from Mr. Wang Kuoying. The equity transfer procedure of TJ was completed in Cambodia on September 3, 2020. The investment amounted to USD297,529 according to the net value in August 2020, which was one month before the share equity settlement date. The Company remitted NT$8,264 thousand and increased investment of NT$1,384 thousand in TJ on December 22, 2021 and December 27, 2021, respectively. The liquidation of TJ was approved by the Board of Directors on December 23, 2022, with capital of NT$2,709 thousand (US$86 thousand) remitted back on November 28, 2025. As of December 31, 2025, the total investment in TJ amounted to NT$6,939 thousand.

G. For the years ended December 31, 2025 and 2024, the Company recognized the share of profit or loss of associates and joint ventures and exchange differences on translation of foreign financial statements accounted for the using equity method. The details are as follows:

(a) Share of profit or loss of associates and joint ventures accounted for the using equity method in 2025 and 2024 are as follows:

	For the years ended December 31
Investees	2025	2024
GPI Co.(Samoa) Ltd.	$7,372	$9,812
JIOU FU CO., LTD.	68,744	46,773
GPIKT DE, INC.	(1,545,548)	53,390
GPIKT (BVI) CO., LTD.	-	-
WEKARE CO., LTD.	(108)	(124)
TJ OFFICE SOLUTION CO., LTD	(668)	(505)
Total	$(1,470,208)	$109,346

(b) Exchange differences on translation of foreign financial statements in 2025 and 2024 are as follows:

	For the years ended December 31
Investees	2025	2024
GPI Co.(Samoa) Ltd.	$(40,918)	$62,526
JIOU FU CO., LTD.	-	-
GPIKT DE, INC.	(75,706)	122,821
GPIKT (BVI) CO., LTD.	(2)	2
WEKARE CO., LTD.	-	-
TJ OFFICE SOLUTION CO., LTD	(157)	249
Total	$(116,783)	$185,598

(5) Property, plant and equipment

	As of December 31
	2025	2024
Owner occupied property, plant and equipment	$1,064,483	$1,069,334

	Land	Buildings	Machinery and equipment	Transportation equipment	Office equipment	Other equipment	Construction in progress and equipment awaiting inspection	Total
Cost:
As of January 1, 2025	$555,473	$577,514	$294,875	$24,267	$62,641	$109,862	$217	$1,624,849
Additions	-	9,611	13,789	535	4,776	19,740	-	48,451
Disposals	-	(3,513)	(8,954)	-	(499)	(601)	-	(13,567)
Transfers	-	217	1,072	-	-	10,098	(217)	11,170
As of December 31, 2025	$555,473	$583,829	$300,782	$24,802	$66,918	$139,099	$-	$1,670,903
Depreciation and impairment:
As of January 1, 2025	$-	$172,922	$262,000	$17,189	$43,565	$59,839	$-	$555,515
Depreciation	-	19,180	12,993	1,819	6,869	23,581	-	64,442
Disposals	-	(3,513)	(8,924)	-	(499)	(601)	-	(13,537)
As of December 31, 2025	$-	$188,589	$266,069	$19,008	$49,935	$82,819	$-	$606,420
Cost:
As of January 1, 2024	$631,659	$218,901	$301,222	$24,081	$54,354	$83,184	$445,881	$1,759,282
Additions	-	115,504	7,217	550	9,564	13,343	217	146,395
Disposals	-	-	(13,602)	(364)	(1,277)	(288)	-	(15,531)
Transfers	-	464,588	38	-	-	13,623	(445,881)	32,368
Reclassification	(76,186)	(221,479)	-	-	-	-	-	(297,665)
As of December 31, 2024	$555,473	$577,514	$294,875	$24,267	$62,641	$109,862	$217	$1,624,849

	Land	Buildings	Machinery and equipment	Transportation equipment	Office equipment	Other equipment	Construction in progress and equipment awaiting inspection	Total
Depreciation and impairment:
As of January 1, 2024	$-	$158,775	$262,442	$15,605	$38,831	$37,357	$-	$513,010
Depreciation	-	14,147	13,122	1,948	6,011	22,770	-	57,998
Disposals	-	-	(13,564)	(364)	(1,277)	(288)	-	(15,493)
As of December 31, 2024	$-	$172,922	$262,000	$17,189	$43,565	$59,839	$-	$555,515
Net carrying amount:
As of December 31, 2025	$555,473	$395,240	$34,713	$5,794	$16,983	$56,280	$-	$1,064,483
As of December 31, 2024	$555,473	$404,592	$32,875	$7,078	$19,076	$50,023	$217	$1,069,334

A. Components of buildings that have different useful lives are the main building structure, utility and structure reinforcement constructions and others, which are depreciated over 50 years, 10 years and 15 years, respectively.
B. Capitalized interest payments and interest rate of property, plant and equipment

	For the years ended December 31
	2025	2024
Capitalized interest payments	$-	$3,761
Capitalized interest rate	-	1.823%

Please refer to Note 8 for details of property, plant and equipment pledged as collateral.

(6) Investment property

	Land	Buildings	Total
Cost :
As of January 1, 2025	$89,782	$221,479	$311,261
Reclassification	-	-	-
As of December 31, 2025	$89,782	$221,479	$311,261
As of January 1, 2024	$13,596	$-	$13,596
Reclassification	76,186	221,479	297,665
As of December 31, 2024	$89,782	$221,479	$311,261
Depreciation and impairment :
As of January 1, 2025	$-	$5,228	$5,228
Depreciation	-	7,879	7,879
As of December 31, 2025	$-	$13,107	$13,107
As of January 1, 2024	$-	$-	$-
Depreciation	-	5,228	5,228
As of December 31, 2024	$-	$5,228	$5,228
Net carrying amount as at:
As of December 31, 2025	$89,782	$208,372	$298,154
As of December 31, 2024	$89,782	$216,251	$306,033

No investment property was pledged.

Investment properties held by the Company are not measured at fair value, but for which the fair value are disclosed. The fair value measurements of the investment properties are categorized at Level 3. The fair value has been determined based on valuations performed by an independent appraiser, and measured via Comparison Method, Land Development Analysis Approach and Income Approach. As of December 31, 2025 and 2024, the Company's investment properties were amounted to NT$373,062 thousand and NT$501,744 thousand, respectively.

(7) Intangible assets

	For the year ended December 31, 2025
	Computer software	Other intangible assets	Total
Cost:
As of January 1, 2025	$116,185	$19,747	$135,932
Additions	-	103	103
Transfers	-	749	749
Disposals	(393)	(2,309)	(2,702)
As of December 31, 2025	$115,792	$18,290	$134,082
Amortization and impairment:
As of January 1, 2025	$77,353	$12,949	$90,302
Amortization	11,092	636	11,728
Disposals	(359)	(1,197)	(1,556)
As of December 31, 2025	$88,086	$12,388	$100,474
	For the year ended December 31, 2024
	Computer software	Other intangible assets	Total
Cost:
As of January 1, 2024	$98,358	$18,822	$117,180
Additions	5,228	198	5,426
Transfers	12,748	727	13,475
Disposals	(149)	-	(149)
As of December 31, 2024	$116,185	$19,747	$135,932
Amortization and impairment:
As of January 1, 2024	$65,178	$12,291	$77,469
Amortization	12,324	658	12,982
Disposals	(149)	-	(149)
As of December 31, 2024	$77,353	$12,949	$90,302
Net carrying amount:
As of December 31, 2025	$27,706	$5,902	$33,608
As of December 31, 2024	$38,832	$6,798	$45,630

Please refer to Note 6(15) for recognition of amortization expenses of intangible assets.

(8) Short-term loans

	As of December 31
	2025	2024
Unsecured bank loans	$975,000	$1,210,000
Secured bank loans	700,000	600,000
Total	$1,675,000	$1,810,000
Interest Rates (%)	2025	2024
Unsecured bank loans	1.5729%~2.1015%	1.6278%~2.1563%
Secured bank loans	1.8300%~1.8580%	1.8596%

The Company's unused short-term lines of credit amounted to NT$2,560,000 thousand and NT$2,075,000 thousand as of December 31, 2025 and 2024, respectively. The secured bank loans are secured by the land and buildings. Please refer to Note 8 for details of the assets pledged as collateral for these loans.

(9) Other payables

	As of December 31
	2025	2024
Payroll	$52,403	$61,053
Payables on remuneration to employees	-	29,266
Payables on remuneration to directors	-	13,500
Payables for equipment	5,321	7,162
Payables for equipment – related parties	1,791	-
Other payables – related parties	10,346	1,994
Other payables – others	4,055	3,691
Other accrued expenses	20,785	24,785
Total	$94,701	$141,451

(10) Long-term loans

	As of December 31
	2025	2024
Secured bank loans	$560,000	$340,000
Less: current portion	(80,000)	(80,000)
Total	$480,000	$260,000
Interest Rates (%)	2025	2024
Secured bank loans	1.9000%~1.9926%	2.00850%
Maturity date	2025	2024
Secured bank loans	2027.01~2029.02	2029.02

As of December 31, 2025 and 2024, the Company's unused credit of long-term loans both amounted to NT$0 thousand.

Please refer to Note 8 for details of the assets pledged as collateral for these loans.

(11) Post-employment benefits

Defined contribution plan

The Company adopts a defined contribution plan in accordance with the Labor Pension Act of the R.O.C. Under the Labor Pension Act, the Company has made monthly contributions of no less than 6% of the employees' monthly wages to the employees' individual pension accounts. The Company has made monthly contributions of 6% of each individual employee's salaries or wages to employees' pension accounts.

Pension expenses under the defined contribution plan for the years ended December 31, 2025 and 2024 were NT$12,494 thousand and NT$12,951 thousand, respectively.

Defined benefits plan

The Company adopts a defined benefit plan in accordance with the Labor Standards Act of the R.O.C. The pension benefits are disbursed based on the units of service years and the average salaries in the last month of the service year. Two units per year are awarded for the first 15 years of services while one unit per year is awarded after the completion of the 15th year. The total units shall not exceed 45 units. Under the Labor Standards Act, the Company contributes an amount equivalent to 2% of the employees' total salaries and wages on a monthly basis to the pension fund deposited at the Bank of Taiwan in the name of the administered pension fund committee. Before the end of each year, the Company assesses the balance in the designated labor pension fund. If the amount is inadequate to pay pensions to the workers retiring in the same year, the Company will make up the difference in one appropriation before the end of March the following year.

The Ministry of Labor is in charge of establishing and implementing the fund utilization plan in accordance with the Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund. The pension fund is invested in-house or under mandation, based on a passive-aggressive investment strategy for long-term profitability. The Ministry of Labor establishes checks and risk management mechanism based on the assessment of risk factors including market risk, credit risk and liquidity risk, in order to maintain adequate manager flexibility to achieve targeted return without over-exposure of risk. With regard to utilization of the pension fund, the minimum earnings in the annual distributions on the final financial statement shall not be less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. Treasury Funds can be used to cover the deficits after the approval of the competent authority. As the Company does not participate in the operation and management of the pension fund, no disclosure on the fair value of the plan assets categorized in different classes could be made in accordance with paragraph 142 of IAS 19. The Company expects to contribute NT$2,042 thousand to its defined benefit plan during the 12 months beginning after December 31, 2025.

The weighted average duration of the defined benefits plan obligation as of December 31, 2025 and 2024 were 14 years and 15 years, respectively.

Pension costs recognized in profit or loss are as follows:

	For the years ended December 31
	2025	2024
Current period service costs	$-	$44
Net interest on the net defined benefit liabilities
(assets)	598	734
Total	$598	$778

Reconciliations in the defined benefit obligation and fair value of plan assets are as follows:

	As of December 31
	2025	2024
Present value of defined benefit obligation	$94,827	$102,993
Plan assets at fair value	(73,959)	(67,412)
Net defined benefit liabilities, non-current	$20,868	$35,581

Reconciliation of liability (asset) of the defined benefit plan is as follows:

	Present value of defined benefit obligation	Fair value of plan assets	Net defined benefit liability (asset)
As of January 1, 2024	$122,345	$(66,281)	$56,064
Current period service costs	44	-	44
Net interest expense (income)	1,602	(868)	734
Subtotal	123,991	(67,149)	56,842
Remeasurements of the net defined benefit liabilities (assets):
Actuarial gains and losses arising from changes in financial assumptions	(5,746)	-	(5,746)
Experience adjustments	(7,424)	-	(7,424)
Remeasurements of the net defined benefit assets	-	(5,794)	(5,794)
Subtotal	(13,170)	(5,794)	(18,964)
Benefits paid	(7,828)	7,828	-
Contributions by employer	-	(2,297)	(2,297)
As of December 31, 2024	$102,993	$(67,412)	$35,581
As of January 1, 2025	$102,993	$(67,412)	$35,581
Current period service costs	-	-	-
Net interest expense (income)	1,730	(1,132)	598
Subtotal	104,723	(68,544)	36,179
Remeasurements of the net defined benefit liabilities (assets):
Actuarial gains and losses arising from changes in financial assumptions	2,953	-	2,953
Experience adjustments	(10,101)	-	(10,101)
Remeasurements of the net defined benefit assets	-	(4,866)	(4,866)
Subtotal	(7,148)	(4,866)	(12,014)
Benefits paid	(2,748)	2,748	-
Contributions by employer	-	(3,297)	(3,297)
As of December 31, 2025	$94,827	$(73,959)	$20,868

The following significant actuarial assumptions are used in determining the Company's defined benefit plan:

	As of December 31
	2025	2024
Discount rate	1.45%	1.68%
Expected rate of salary increases	3.00%	3.00%

Sensitivity analysis for significant assumptions are shown below:

	For the years ended December 31
	2025		2024
	Increase in defined benefit obligation	Decrease in defined benefit obligation	Increase in defined benefit obligation	Decrease in defined benefit obligation
Discount rate increase by 0.5%	$-	$(6,283)	$-	$(7,217)
Discount rate decrease by 0.5%	6,813	-	7,854	-
Future salary increase by 0.5%	6,673	-	7,710	-
Future salary decrease by 0.5%	-	(6,221)	-	(7,161)

The sensitivity analyses above are based on a change in a significant assumption (for example: change in discount rate or future salary), keeping all other assumptions constant. The sensitivity analyses may not be representative of an actual change in the defined benefit obligation as it is unlikely that changes in assumptions would occur in isolation of one another.

There was no change in the methods and assumptions used in preparing the sensitivity analyses compared to the previous period.

(12) Equity

A. Common stock

The Company's authorized capital were both NT$2,000,000 thousand divided into 200,000 thousand shares with par value of NT$10 as of December 31, 2025, and 2024. The Company's issued capital were both NT$1,275,887 thousand divided into 127,589 thousand shares with par value of NT$10 each as of December 31, 2025, and 2024. Each share has one voting right and a right to receive dividends.

B. Additional paid-in capital

According to the Company Act, the additional paid-in capital shall not be used except for making up the deficit of the company. When a company incurs no loss, it may distribute the additional paid-in capital related to the income derived from the issuance of new shares at a premium or income from donations received by the Company. The distribution could be made in cash or in the form of dividend shares to its shareholders in proportion to the number of shares being held by each of them.

	As of December 31
	2025	2024
Share Premium	$1,200,346	$1,200,346
Employee stock	13,453	13,453
Total	$1,213,799	$1,213,799

C. Distribution of retained earnings and dividend policies

(a) According to the Company's Articles of Incorporation, current year's earnings, if any, shall be distributed in the following order:

(i) Payment of tax;
(ii) Offsetting accumulated deficits, if any;
(iii) Setting aside 10% for legal reserve;
(iv) Appropriating or reversing special reserve in compliance with the Company Act or Securities and Exchange Act;
(v) The distribution of the remaining portion, if any, will be proposed by the Board of Directors and resolved in the shareholders' meeting;
(vi) If the distribution mentioned above distribute in the form of cash dividends would be authorized to the special resolution held by the Board of Directors and resolved in the shareholders' meeting.

The Company's policy of distribution is based on capital expenditure, business expansion and sustainable development. The board of directors shall propose the distribution plan and resolve in the shareholders' meeting. The shareholders' dividends shall be more than 10% of distributable earnings. The cash dividends shall not be less than 10% of total shareholders' dividends. The Company may choose not to distribute earnings if the earnings are insufficient to fund appropriation of a NT$0.5 dividend per share.

(b) Pursuant to the Company Act, the company is required to set aside amount to legal reserve until the accumulated legal reserve equals total paid-in capital. The legal reserve can be used to make up the deficit. When a company incurs no loss, it may distribute the portion of legal serve which exceeds 25% of the paid-in capital by issuing new shares or by cash in proportion to the number of shares being held by each of the shareholders.

(c) Details of the 2025 and 2024 earnings distribution and dividends per share as resolved by the Board of Director’s meeting and the shareholders’ meeting held on March 12, 2026 and June 19, 2025, respectively, are as follows:

	Appropriation of earnings		Dividend per share (NTD)
	2025	2024	2025	2024
Legal reserve	$-	$38,232	$-	$2.5
Cash dividends	-	318,972	$-	318,972

The Company was authorized according to the Articles of Association and passed by resolution on March 10, 2025 the proposal to distribute common share cash dividends of 2024.

On March 12, 2026, the Board of Directors resolved to distribute cash dividends from capital surplus in the amount of NT$63,794 thousand, representing NT$0.5 per share.

Please refer to Note 6(15) for details of employees’ compensation and remuneration to directors.

(13) Operating revenues

	For the years ended December 31
	2025	2024
Revenue from contracts with customers
Sale of goods	$1,252,742	$1,537,537

Information of revenues from contracts with customers during the years ended December 31, 2025 and 2024 are as follows:

A. Disaggregation of revenue

The Company recognized revenues at a point in time for both the years ended December 31, 2025 and 2024.

B. Contract balances

Contract liabilities - current

	As of December 31
	2025	2024
Sales of goods	$7,023	$5,905

(14) Leases

A. The Company as a lessee

The Company leases various properties, including real estate (such as land and buildings), transportation equipment, office equipment and other equipment. The lease terms range from 1 to 8 years.

The Company’s leases effect on the financial position, financial performance and cash flows were as follows:

(a) Amounts recognized in the balance sheet

(i) Right-of-use assets

The carrying amount of right-of-use assets

	As of December 31
	2025	2024
Land	$7,182	$8,145
Transportation Equipment	564	1,316
Office equipment	467	665
Total	$8,213	$10,126

For the years ended December 31, 2025 and 2024, the Company’s additions to right-of-use assets amounted to NT$873 thousand and NT$2,051 thousand, respectively.

(ii) Lease liabilities

	As of December 31
	2025	2024
Lease liabilities
Current	$2,446	$2,665
Non-current	5,230	7,638
Total	$7,676	$10,303

Please refer to Note 6(16)(D) for the interest on lease liabilities recognized for the years ended December 31, 2025 and 2024 and refer to Note 12(5) Liquidity risk management for the maturity analysis for lease liabilities as of December 31, 2025 and 2024.

(b) Amounts recognized in the statement of comprehensive income

Depreciation charge for right-of-use assets

	For the years ended December 31
	2025	2024
Land	$1,711	$1,702
Transportation Equipment	752	188
Office equipment	323	307
Total	$2,786	$2,197

	For the years ended December 31
	2025	2024
The expenses relating to short-term leases	$3,212	$3,816
The expenses relating to leases of low-value assets (Not including the expenses relating to short-term leases of low-value assets)	195	456
Total	$3,407	$4,272

(d) Cash outflow relating to leasing activities

The Company's total cash outflows for leases for the years ended December 31, 2025 and 2024 were NT$7,046 thousand and NT$6,590 thousand, respectively.

B. The Company as a lessor

Please refer to Note 6(6) for details on the Company’s owned investment properties. Leases of owned investment properties are classified as operating leases as they do not transfer substantially all the risks and rewards incidental to ownership of underlying assets.

	For the years ended December 31
	2025	2024
Lease income recognized from operating leases
Income related to fixed lease payments and variable lease payments dependent on an index or rate.	$38,304	$38,180

Future minimum rentals receivable under non-cancellable operating leases as at 31 December 2025 and 2024, are as follows:

	For the years ended December 31
	2025	2024
Not later than one year	$39,085	$39,220
Later than one year and not later than two years	-	39,220
Total	$39,085	$78,440

(15) Summarized statement of employee benefits, depreciation and amortization expenses by function for the years ended December 31, 2025 and 2024:

| Function
Nature | For the years ended December 31 | | | | | |
| --- | --- | --- | --- | --- | --- | --- |
| | 2025 | | | 2024 | | |
| | Operating costs | Operating expenses | Total amount | Operating costs | Operating expenses | Total amount |
| Employee benefits expense | | | | | | |
| Salaries | $181,247 | $97,265 | $278,512 | $204,698 | $133,169 | $337,867 |
| Labor and health insurance | 24,659 | 9,782 | 34,441 | 24,082 | 9,709 | 33,791 |
| Pension | 8,355 | 4,737 | 13,092 | 8,700 | 5,029 | 13,729 |
| Remuneration to directors | - | 7,934 | 7,934 | - | 13,740 | 13,740 |
| Other employee benefits expenses | 7,963 | 5,712 | 13,675 | 9,382 | 5,151 | 14,533 |
| Depreciation | 38,282 | 36,825 | 75,107 | 36,056 | 29,367 | 65,423 |
| Amortization | 132 | 11,596 | 11,728 | 156 | 12,826 | 12,982 |

Note: As of December 31, 2025 and 2024, the Company’s employees were 490 and 485, respectively; the number of directors who were not concurrently employees were 7 and 8, respectively.

For the years ended December 31, 2025 and 2024, the average of employees benefits expense of the Company were NT$703 thousand and NT$838 thousand, respectively. For the years ended December 31, 2025 and 2024, the average of employees salaries expenses of the Company were NT$577 thousand and NT$708 thousand, respectively; the average salary expense adjustment decreased by 18.50%. The decrease in the average employee benefit expenses and average employee salary expenses in the year ended 2025 was mainly due to the Company's pre-tax net loss for the period, which resulted in a reduction in the estimated year-end bonuses and employee compensation.

The Company's policy for compensation of directors, managers and employees is as follows:

According to the Articles of Incorporation, at least 0.1% of profit of the current year is distributable as employees' compensation and no more than 0.03% of profit of the current year is distributable as remuneration to directors. However, the Company's accumulated losses shall have been covered. The aforementioned profit refers to the profit before tax in the current year after deducting the distribution of employee remuneration and the remuneration of directors.

The manager's remuneration policy is based on consideration of the manager's performance on the company's strategic development, operating finance, and business development, as well as factors such as work responsibilities, work experience, price inflation, and market standards, to set a competitive policy that reflects work performance remuneration.

The Company may, by a resolution adopted by a majority vote at a meeting of Board of Directors attended by two-thirds of the total number of directors, have the profit distributable as employees' compensation in the form of shares or in cash; and in addition thereto a report of such distribution is submitted to the shareholders' meeting. Information on the Board of Directors' resolution regarding the employees' compensation and remuneration to directors can be obtained from the "Market Observation Post System" on the website of the TWSE.

For the years ended December 31, 2025 and 2024, the Company recognized employees' compensation and remuneration to directors based on profit of current year, respectively. The details of employees' compensation and remuneration to directors were as follows:

	For the years ended December 31
	2025	2024
Employees' compensation	$-	$29,266
Remuneration to directors	-	13,500

As the Company reported a net loss before tax for the year ended 2025, no employees’ compensation or directors’ remuneration was accrued.

There were no material differences between the estimated amount and the actual distribution of the employees’ compensation and remuneration to directors for the year ended December 31, 2024.

(16) Non-operating income and expenses

A. Interest income

	For the years ended December 31
	2025	2024
Cash and cash equivalent	$797	$908
Financial assets measured at amortized cost	31	30
Total	$828	$938

B. Other income

	For the years ended December 31
	2025	2024
Rental income	$38,304	$38,180
Management income	37,384	38,498
Others	16,506	11,830
Total	$92,194	$88,508

C. Other gains and losses

	For the years ended December 31
	2025	2024
Foreign exchange (losses) gains, net	$(13,423)	$26,699
Gains on disposal of property, plant and equipment	22	42
Losses on disposal of intangible asset	(1,146)	-
Net gain (loss) on financial assets and liabilities measured at fair value through profit or loss	782	(895)
Miscellaneous expenditure	(10,166)	(864)
Total	$(23,931)	$24,982

D. Finance costs

	For the years ended December 31
	2025	2024
Interest on loans from bank	$42,150	$41,217
Less: Capitalized interest payments	-	(3,761)
Subtotal	42,150	37,456
Interest on lease liabilities	139	154
Interest on loans from related parties	535	374
Total	$42,824	$37,984

(17) Components of other comprehensive income (loss)

A. For the year ended December 31, 2025

	Arising during the period	Reclassification adjustments during the period	Other comprehensive income, before tax	Income tax expense	Other comprehensive income, net of tax
Items that may not be reclassified subsequently to profit or loss:
Remeasurements of defined benefit plans	$12,014	$-	$12,014	$(2,403)	$9,611
Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income	698	-	698	-	698
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations	(116,783)	-	(116,783)	44,074	(72,709)
Gains (losses) on hedging instruments	73	-	73	-	73
Total other comprehensive income (loss)	$(103,998)	$-	$(103,998)	$41,671	$(62,327)

B. For the year ended December 31, 2024

	Arising during the period	Reclassification adjustments during the period	Other comprehensive income, before tax	Income tax expense	Other comprehensive income, net of tax
Items that may not be reclassified subsequently to profit or loss:
Remeasurements of defined benefit plans	$18,964	$-	$18,964	$(3,793)	$15,171
Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income	(4,609)	-	(4,609)	-	(4,609)
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations	185,598	-	185,598	(24,607)	160,991
Gains (losses) on hedging instruments	728	-	728	-	728
Total other comprehensive income (loss)	$200,681	$-	$200,681	$(28,400)	$172,281

(18) Income tax

A. The major components of income tax expense for the years ended 31 December 2025 and 2024 were as follows:

(a) Income tax expense recognized in profit or loss

	For the years ended December 31
	2025	2024
Current income tax expense (income):
Current income tax charge	$42,959	$83,626
Undistributed surplus for income tax	727	715
Adjustments in respect of current income tax of prior periods	(99)	5,145
Deferred income tax expense (income):
Deferred income tax (income) expense relating to origination and reversal of temporary differences	(41,853)	11,717
Total income tax expense	$1,734	$101,203

(b) Income tax relating to components of other comprehensive income

	For the years ended December 31
	2025	2024
Deferred income tax (income) expense:
Remeasurements of defined benefit plans	$2,403	$3,793
Exchange differences on translation of foreign operations	(44,074)	24,607
Income tax relating to components of other comprehensive income	$(41,671)	$28,400

	For the years ended December 31
	2025	2024
Accounting (loss) profit before tax from continuing operations	$(1,218,315)	$468,351
Tax calculated based on statutory tax rate	$(243,663)	$93,670
Tax effect of revenues exempt from taxation	(21,654)	(1,210)
Tax effect of expenses not deductible for tax purposes	115	112
Unrecognized deductible temporary differences	307,406	-
Tax effect of deferred tax assets/liabilities	(42,575)	809
Undistributed surplus for income tax	727	715
Adjustments in respect of current income tax of prior periods	(99)	5,145
Other income tax effects adjusted according to tax laws	1,477	1,962
Total income tax expense recognized in profit or loss	$1,734	$101,203

(d) Amounts and components of deferred tax assets (liabilities) were as follows:

(i) For the year ended December 31, 2025

	Beginning balance as of January 1, 2025	Recognized in profit or loss	Recognized in other comprehensive income	Ending balance as of December 31, 2025
Temporary differences
Exchange differences on translation of foreign operations	$(44,228)	$-	$44,074	$(154)
Investments accounted for using the equity method	(41,173)	42,708	-	1,535
Unrealized foreign exchange gains or losses	(1,284)	473	-	(811)
Allowance for doubtful accounts	690	(538)	-	152
Allowance to reduce inventory to market value	1,692	(236)	-	1,456
Defined benefit liability, non-current	7,116	(540)	(2,403)	4,173
Unrealized sales revenue	44	(14)	-	30
Deferred tax expense (income)		$41,853	$41,671
Net deferred tax assets (liabilities)	$(77,143)			$6,381
Reflected in balance sheet as follows:
Deferred tax assets	$11,793			$12,539
Deferred tax liabilities	$(88,936)			$(6,158)

(ii) For the year ended December 31, 2024

	Beginning balance as of January 1, 2024	Recognized in profit or loss	Recognized in other comprehensive income	Ending balance as of December 31, 2024
Temporary differences
Exchange differences on translation of foreign operations	$(19,621)	$-	$(24,607)	$(44,228)
Investments accounted for using the equity method	(33,018)	(8,155)	-	(41,173)
Unrealized foreign exchange gains or losses	2,186	(3,470)	-	(1,284)
Allowance for doubtful accounts	649	41	-	690
Allowance to reduce inventory to market value	1,559	133	-	1,692
Defined benefit liability, non-current	11,213	(304)	(3,793)	7,116
Unrealized sales revenue	6	38	-	44
Deferred tax expense (income)		$(11,717)	$(28,400)
Net deferred tax assets (liabilities)	$(37,026)			$(77,143)
Reflected in balance sheet as follows:
Deferred tax assets	$16,874			$11,793
Deferred tax liabilities	$(53,900)			$(88,936)

B. As of December 31, 2025, the Company's income tax returns for all the fiscal years up to 2023 have been assessed and approved by the tax authority.

(19) (Losses) Earnings per share

Basic (losses) earnings per share amounts are calculated by dividing net profit for the year attributable to ordinary equity holders of the parent entity by the weighted average number of ordinary shares outstanding during the year.

Diluted (losses) earnings per share amounts are calculated by dividing the net profit attributable to ordinary equity holders of the parent entity (after adjusting for interest on the convertible bonds) by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.

	For the years ended December 31
	2025	2024
A. Basic (losses) earnings per share
Net (loss) income attributable to ordinary equity holders of the parent (in thousand of NTD)	$(1,220,049)	$367,148
Weighted average number of ordinary shares outstanding for basic (losses) earnings per share (in thousands)	127,589	127,589
Basic (losses) earnings per share (NTD)	$(9.56)	$2.88
	2025	2024
B. Diluted earnings per share
Net (loss) income attributable to ordinary equity holders of the parent (in thousand of NTD)	$(1,220,049)	$367,148
Net (loss) income attributable to ordinary equity holders of the parent after dilution (in thousand of NTD)	$(1,220,049)	$367,148
Weighted average number of ordinary shares outstanding for basic (losses) earnings per share (in thousands)	127,589	127,589
Effect of dilution:
Employees compensation - stock (in thousands)	(Note)-	1,019
Weighted average number of ordinary shares outstanding after dilution (in thousands)	127,589	128,608
Diluted (losses) earnings per share (NTD)	$(9.56)	$2.85

Note: As the Company reported a net loss for the year ended 2025, potential dilutive shares are anti-dilutive and are therefore excluded from the calculation.

There have been no other transactions involving ordinary shares or potential ordinary shares between the reporting date and the issuance date of financial statements.

Related party transactions

The related parties who had transactions with the Company during the financial reporting Period were as follows:

Related parties and relationship

Related Party	Relationship
Katun Corporation	Subsidiary
Katun EDC (B.V.)	Subsidiary
PNA Holdings Mexico, S.A. de C.V.	Subsidiary
Katun Asia Pte Ltd. (Singapore)	Subsidiary
Katun Corporation Taiwan Branch (USA)	Subsidiary
JIOU FU CO., LTD.	Subsidiary
WEKARE CO., LTD.	Subsidiary
CK ROYAL CONSTRUCTION CO., LTD.	The Chairman of the related party is the Director of the Company
Wang, Jui-Hung and 11 others	Board of Directors or vice presidents and above

(1) Sales

	For the years ended December 31
	2025	2024
Katun Corporation	$360,932	$433,640
Katun EDC (B.V.)	299,672	398,001
Other	13,157	4,822
Total	$673,761	$836,463

The price at which the Company sold to related parties was negotiated based on the market price by both parties; the payment term was T/T 70 or 120 days (120 days was the majority). The outstanding amount was not secured and cash-payment only, and no interest was accrued as of December 31, 2025. The accounts receivable from related parties were not pledged.

(2) Purchases

	For the years ended December 31
	2025	2024
Katun Corporation	$5,790	$8,418

The purchase price from the above related parties was determined through mutual agreement based on the market rates. The payment terms from the related party suppliers were comparable with third party suppliers and were T/T 60 days.

(3) Accounts receivable - related parties

	As of December 31
	2025	2024
Katun EDC (B.V.)	$89,739	$143,785
Katun Corporation	89,559	143,932
PNA Holdings Mexico, S.A. de C.V.	3,552	2,582
Total	$182,850	$290,299

(4) Other receivable - related parties

	As of December 31
	2025	2024
Katun Corporation Taiwan Branch (USA)	$1,590	$-

(5) Accounts payable - related parties

	As of December 31
	2025	2024
Katun EDC (B.V.)	$850	$-
Katun Asia Pte Ltd. (Singapore)	492	3,184
PNA Holdings Mexico, S.A. de C.V.	8	475
Total	$1,350	$3,659

(6) Payable on machinery and equipment - related parties

	As of December 31
	2025	2024
Katun Asia Pte Ltd. (Singapore)	$1,791	$-

(7) Other payables - related parties

	As of December 31
	2025	2024
Katun Corporation	$9,920	$-
PNA Holdings Mexico, S.A. de C.V.	141	-
Katun Asia Pte Ltd. (Singapore)	108	-
JIOU FU CO., LTD.	81	112
Katun EDC (B.V.)	-	1,877
Other	96	5
Total	$10,346	$1,994

(8) Other income

	For the years ended December 31
	2025	2024
Katun Corporation Taiwan Branch (USA)	$43,534	$41,169
Katun Corporation	40,832	40,173
Other	-	35
Total	$84,366	$81,377

The Company leases a portion of its office premises to Katun Corporation Taiwan Branch and receives rental income. The rental fees are determined based on prevailing market rates.

The Company provides management services to Katun Corporation and charges management service fees in accordance with the terms of the management services agreement entered into by both parties.

(9) Other losses - Miscellaneous expenditures

	For the years ended December 31
	2025	2024
Katun Corporation	$9,439	$-

(10) The cost, assets and liabilities related to the construction of the building

As of the year 2024, our company has commissioned CK ROYAL CONSTRUCTION Co., Ltd. to purchase equipment totaling NT$1,464 thousand, which is recorded as Property, plant and equipment.

(11) Key management compensation

	For the years ended December 31
	2025	2024
Short-term employee benefits	$34,194	$54,505
Defined benefit obligation	729	733
Total	$34,923	$55,238

For more information about key management compensation mentioned above, please refer to Annual Report.

Assets pledged as collateral

The following table lists assets of the Company pledged as collateral for customs clearance of imported goods and bank loans:

	Carrying amount
	As of December 31
Item	2025	2024
Property, plant and equipment - land and buildings	$1,078,476	$1,102,210
Financial assets measured at amortized cost	1,809	1,805
Total	$1,080,285	$1,104,015

Significant Contingent Liabilities and Unrecognized Commitments

The Company has available amounts of NT$25,000 thousand under unused letters of credit as of December 31, 2025.

Significant losses from disasters

None.

Significant subsequent events

The Company, Katun (E.D.C.) B.V. and Katun Corporation (collectively referred to as the "Company and its subsidiaries") were involved in a patent infringement litigation with Canon Kabushiki Kaisha ("Canon"). The court rendered a final judgment on February 12, 2026, requiring the Company and its subsidiaries to pay total damages of EUR 700 thousand to Canon. The amount comprises EUR 100 thousand in damages, EUR 570 thousand in legal fees, and EUR 30 thousand in litigation costs. In addition, the Company and its subsidiaries are required to dispose of the infringing inventory items. As the related obligation existed as of the balance sheet date, the Group recognized the liability in accordance with the court decision.

Other

(1) Categories of financial instruments

Financial assets	As of December 31
	2025	2024
Financial assets measured at amortized cost:
Cash and cash equivalents (excluding cash on hand)	$223,125	$132,848
Financial assets measured at amortized cost, current	1,809	1,805
Notes receivable and accounts receivable (including related party)	272,875	407,085
Other receivables	5,337	5,705
Guarantee deposits paid	96	91
Total	$503,242	$547,534
Financial Liabilities	As of December 31
	2025	2024
Financial liabilities at amortized cost:
Short-term loans	$1,675,000	$1,810,000
Notes and accounts payable (including related party)	69,930	84,487
Other payables	94,701	141,451
Lease liabilities	7,676	10,303
Long-term loans (including current portion)	560,000	340,000
Guarantee deposits received	31,000	31,000
Subtotal	2,438,307	2,417,241
Financial liabilities measured at fair value through profit or loss:
Designated at fair value through profit or loss	113	895
Total	$2,438,420	$2,418,136

(2) Financial risk management objectives and policies

The Company's principal financial risk management objective is to manage the market risk, credit risk and liquidity risk related to its operating activities. The Company identifies measures and manages the aforementioned risks based on the Company's policy and risk appetite.

The Company has established appropriate policies, procedures and internal controls for financial risk management. Before entering into significant transactions, due approval process by the Board of Directors and the Audit Committee must be carried out based on related protocols and internal control procedures. The Company complies with its financial risk management policies at all times.

(3) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of the changes in market prices. Market risks comprise foreign currency risk, interest rate risk and other price risk (such as equity instrument).

In practice, it is rarely the case that a single risk variable will change independently from other risk variables; there are usually interdependencies between risk variables. However the sensitivity analysis disclosed below does not take into account the interdependencies between risk variables.

Foreign currency risk

The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities (when revenue or expense are denominated in a currency different from the Company’s functional currency) and the Company’s net investments in foreign subsidiaries.

The Company has certain foreign currency receivables to be denominated in the same foreign currency with certain foreign currency payables, therefore natural hedge is received. The Company also uses forward contracts to hedge the foreign currency risk on certain items denominated in foreign currencies. Hedge accounting is not applied as they did not qualify for hedge accounting criteria. Furthermore, as net investments in foreign subsidiaries are for strategic purposes, they are not hedged by the Company.

The foreign currency sensitivity analysis of the possible change in foreign exchange rates on the Company’s profit is performed on significant monetary items denominated in foreign currencies as of the end of the reporting period.

The Company’s foreign currency risk is mainly related to the volatility in the exchange rates for USD. Sensitivity analysis as follows:

When NTD strengthens/weakens against foreign currency USD by 1%, the profit for the years ended December 31, 2025 and 2024 decreases/increases by NT$3,403 thousand and NT$774 thousand, respectively.

When NTD strengthens/weakens against foreign currency EUR by 1%, the profit for the years ended December 31, 2025 and 2024 decreases/increases by NT$172 thousand and NT$163 thousand, respectively.

Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s bank borrowings with fixed interest rates and variable interest rates.

The interest rate sensitivity analysis is performed on items exposed to interest rate risk as of the end of the reporting period, including investments and borrowings with variable interest rates and interest rate swaps. At the reporting date, a change of 10 basis points of interest rate in a reporting period could cause the profit for the years ended December 31, 2025 and 2024 to decrease/increase by NT$2,235 thousand and NT$2,150 thousand, respectively.

(4) Credit risk management

Credit risk is the risk that a counterparty will not meet its obligations under a contract, leading to a financial loss. The Company is exposed to credit risk from operating activities (primarily for accounts receivable and notes receivable) and from its financing activities, including bank deposits and other financial instruments.

Credit risk is managed by each business unit subject to the Company’s established policy, procedures and control relating to credit risk management. Credit limits are established for all counter parties based on their financial position, rating from credit rating agencies, historical experience, prevailing economic condition and the Company’s internal rating criteria etc. Certain counter parties’ credit risk will also be managed by taking credit enhancing procedures, such as requesting for prepayment or insurance.

As of December 31, 2025 and 2024, the accounts receivable of top ten customers accounted for 84% and 86% of the total accounts receivable of the Company. The credit concentration risk of other accounts receivable is insignificant.

Credit risk of bank deposits and other financial instruments is managed by the Company’s treasury department in accordance with the Company’s policy. The Company only transacts with counterparties approved by the internal control procedures, which are banks and financial institutions, companies and government entities with good credit rating. Consequently, there is no significant credit risk for these counter parties.

(5) Liquidity risk management

The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of cash and cash equivalents, highly liquid equity investments and bank borrowings. The table below summarizes the maturity profile of the Company’s financial liabilities based on the contractual undiscounted payments and contractual maturity. The payment amount includes the contractual interest. The undiscounted payment relating to borrowings with variable interest rates is extrapolated based on the estimated interest rate yield curve as of the end of the reporting period.

Non-derivative financial liabilities

	Less than 1 year	2 to 3 years	4 to 5 years	> 5 years	Total
As of December 31, 2025
Short-term loans	$1,679,718	$-	$-	$-	$1,679,718
Accounts payable	69,930	-	-	-	69,930
Other payables	94,701	-	-	-	94,701
Lease liabilities	2,617	3,539	1,577	246	7,979
Long-term loans	90,150	464,602	20,066	-	574,818
As of December 31, 2024
Short-term loans	$1,817,702	$-	$-	$-	$1,817,702
Accounts payable	84,487	-	-	-	84,487
Other payables	141,451	-	-	-	141,451
Lease liabilities	2,878	4,349	2,897	616	10,740
Long-term loans	86,092	167,365	101,339	-	354,796

(6) Reconciliation of liabilities arising from financing activities

Reconciliation of liabilities for year ended December 31, 2025:

	Short-term loans	Short-term notes and bills payable	Long-term loans (including current portion)	Leases liabilities	Total liabilities from financing activities
As of January 1, 2025	$1,810,000	$-	$340,000	$10,303	$2,160,303
Cash flows	(135,000)	-	220,000	(3,500)	81,500
Non-cash changes	-	-	-	873	873
As of December 31, 2025	$1,675,000	$-	$560,000	$7,676	$2,242,676

Reconciliation of liabilities for year ended December 31, 2024:

	Short-term loans	Short-term notes and bills payable	Long-term loans (including current portion)	Leases liabilities	Total liabilities from financing activities
As of January 1, 2024	$1,955,000	$79,971	$171,250	$10,416	$2,216,637
Cash flows	(145,000)	(79,971)	168,750	(2,164)	(58,385)
Non-cash changes	-	-	-	2,051	2,051
As of December 31, 2024	$1,810,000	$-	$340,000	$10,303	$2,160,303

(7) Fair values of financial instruments

A. The methods and assumptions applied in determining the fair value of financial instruments:

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and assumptions were used by the Company to measure or disclose the fair values of financial assets and financial liabilities:

(a) The carrying amount of cash and cash equivalents, accounts receivable, accounts payable and other current liabilities approximate their fair value due to their short maturities.

(b) Fair value of equity instruments without market quotations (including private company equity securities) are estimated using the market method valuation techniques based on parameters such as prices based on market transactions of equity instruments of identical or comparable entities and other relevant information (for example, inputs such as discount for lack of marketability, P/E ratio of similar entities and Price-Book ratio of similar entities).

(c) Fair value of debt instruments without market quotations, bank loans and other non-current liabilities are determined based on the counterparty prices or valuation method. The valuation method uses DCF method as a basis, and the assumptions such as the interest rate and discount rate are primarily based on relevant information of similar instrument (such as yield curves published by Taipei Exchange, average prices for Fixed Rate Commercial Paper published by Reuters and credit risk, etc.)

B. Fair value of financial instruments measured at amortized cost

The carrying amounts of the Company's financial assets and financial liabilities are measured at amortized cost approximate their fair value.

C. Fair value measurement hierarchy for financial instruments

Please refer to Note 12(8) for fair value measurement hierarchy for financial instruments of the Company.

(8) Derivative financial instruments

The related information for derivative financial instruments not qualified for hedge accounting and not yet settled as at 31 December 2025 is as follows:

Forward currency contracts

The Company entered into forward currency contracts to manage its exposure to financial risk, but these contracts are not designated as hedging instruments. The table below lists the information related to forward currency contracts:

Items (by contract)	Notional Amount(thousands)	Contract Period
As at 31 December 2025
Forward currency contract
Sell USD / Buy NTD	USD500 / NTD15,582	From November 2025 to February 2026
As at 31 December 2024
Forward currency contract
Sell USD / Buy NTD	USD1,800 / NT$57,944	From November 2024 to March 2025

(9) Fair value measurement hierarchy

A. Fair value measurement hierarchy

All asset and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, based on the lowest level input that is significant to the fair value measurement as a whole. Level 1, 2 and 3 inputs are described as follows:

Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities that the entity can access at the measurement date

Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly

Level 3 – Unobservable inputs for the asset or liability

For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether transfers have occurred between Levels in the hierarchy by re-assessing categorization at the end of each reporting period.

B. Fair value measurement hierarchy of the Company’s assets and liabilities

The Company does not have assets that are measured at fair value on a non-recurring basis. Fair value measurement hierarchy of the Company’s assets and liabilities measured at fair value on a recurring basis were as follows:

As of December 31, 2025

	Level 1	Level 2	Level 3	Total
Financial liabilities measured at fair value
Forward currency contract	$113	$-	$-	$113

As of December 31, 2024

	Level 1	Level 2	Level 3	Total
Financial liabilities measured at fair value
Forward currency contract	$895	$-	$-	$895

Financial assets and liabilities not measured at fair value but for which the fair value is disclosed were as follows:

As of December 31, 2025

	Level 1	Level 2	Level 3	Total
Financial assets not measured at fair value but for which the fair value is disclosed:
Investment properties (please refer to Note 6(6))	$-	$-	$373,062	$373,062

As of December 31, 2024

	Level 1	Level 2	Level 3	Total
Financial assets not measured at fair value but for which the fair value is disclosed:
Investment properties (please refer to Note 6(6))	$-	$-	$501,744	$501,744

(10) Significant assets and liabilities denominated in foreign currencies

Information regarding the significant assets and liabilities denominated in foreign currencies were listed below:

	As of December 31, 2025			As of December 31, 2024
	Foreign currencies (thousands)	Exchange rate	NTD (thousands)	Foreign currencies (thousands)	Exchange rate	NTD (thousands)
Financial assets
Monetary items:
USD	$11,745	31.380	$368,558	$12,695	32.735	$415,571
EUR	513	36.700	18,827	506	33.940	17,174
Financial liabilities
Monetary items:
USD	$900	31.380	$28,242	$977	32.735	$31,982
EUR	45	36.700	1,652	26	33.940	882

Due to the wide variety of individual functional currencies of the Company, the Company is not able to disclose the information of exchange gains and losses of monetary financial assets and liabilities by each significant assets and liabilities denominated in foreign currencies. The Company recognized NT$(13,423) thousand and NT$26,999 thousand for foreign exchange (loss) gain for the years ended December 31, 2025 and 2024, respectively.

(11) Capital management

The primary objective of the Company's capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximize shareholder value. The Company manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To maintain or adjust the capital structure, the Company may adjust dividend payment to shareholders, return capital to shareholders or issue new shares.

Other disclosure

(1) Information of significant transactions

A. Loans to others: The following transactions were written off when the parent company only financial statements were prepared.

No	Lender	Borrower	Financial statement account	Related parties	Maximum balance for the period	Ending balance (By resolution of the Board of Directors)	Amount actually drawn	Interest rate (%)	Nature of financing	Transaction amount	Reasons for short-term financing	Allowance for doubtful account	Collateral		Financing limits for a single borrowing company (Note1)	Limits on total loans granted (Note1)
													Item	value
1	GPIKT DE, INC.	GPI Co.(Samou) Ltd.	Other receivables due from related parties	Yes	$627,600 (USD20,000,000)	$313,800 (USD10,000,000)	$62,760 (USD2,000,000)	4.50%	The need for short-term financing	$-	Operating Purposes and group financial allocation	$-	No	$-	$2,770,626	$5,541,252
1	GPIKT DE, INC.	Katan Corporation	Other receivables due from related parties	Yes	$251,040 (USD8,000,000)	$251,040 (USD8,000,000)	$156,900 (USD5,000,000)	7.00%	The need for short-term financing	$-	Working capital turnover	$-	No	$-	$2,770,626	$5,541,252

Note: 1. The Company's total lending amounts shall be limited to 80% of the Company's net value.
2. If the Company provides financing to a corporation or entity it already had a business transaction with, the total lending amount shall be limited to 40% of the Company's net value; and the individual lending amount shall not exceed the total transaction amount between the two parties in the latest year. The transaction amount referred to above shall mean the higher of purchase or sales amount between the two parties.
3. The total lending amounts shall not exceed 40% of the Company's net value when providing financing to companies that require short-term loans; and the individual lending amount shall not exceed 40% of the Company's net value.
4. Foreign companies in which the Company directly and indirectly holds 100% of the voting shares may engage in lending activities with each other, or foreign companies in which the Company directly and indirectly holds 100% of the voting shares may engage in lending activities with the Company. The total amount of such lending shall not exceed 200% of the Company's net worth, and the individual financing amount shall not exceed 100% of the Company's net worth.

The formula for calculating the lending limit to individual entities is as follows:

GPIKT DE, INC. : NT$2,770,626 thousand*100%= NT$2,770,626 thousand

The formula for calculating the total lending limit is as follows:

GPIKT DE, INC. : NT$2,770,626 thousand*200%= NT$5,541,252 thousand

B. Endorsement/Guarantee provided to others for the year ended December 31, 2025:

No	Endorser/guarantee	Party being endorsed/guaranteed		Limit on endorsements/guarantees amount to a single party	Maximum balance for the period	Ending balance	Actual amount provided	Amount of endorsement/guarantee collateralized by properties	Ratio of accumulated amount of guarantee provided to net equity of the latest financial statements	Limit on total endorsements/guarantees amount provided (Note 1)	Guarantee Provided by Parent Company	Guarantee Provided by Subsidiary	Guarantee Provided to Subsidiaries in Mainland China
		Company name	Relationship
1	Katun Holdings, LP	Katun Corporation	2	$1,316,926	$361,219 (USD 11,511,135)	$280,023 (USD 8,923,617)	$2,094 (USD 66,730)	$-	10.11%	$1,316,926	N	N	N
1	Katun Holdings, LP	Katun U.K.Ltd.	2	$1,316,926	$21,176 (GBP500,000)	$21,176 (GBP500,000)	$-	$-	0.76%	$1,316,926	N	N	N
2	Katun Corporation	PNA Holdings de Mexico S.A. de C.V.	2	$604,459	$35,815 (USD1,141,321)	$17,290 (USD550,982)	$814 (USD25,939)	$-	0.62%	$604,459	N	N	N
2	Katun Corporation	Katun Brasil Comércio de Suprimentos, Pecas e Equipamentos Ltda	2	$604,459	$109,830 (USD3,500,000)	$109,830 (USD3,500,000)	$27,368 (USD872,140)	$-	3.96%	$604,459	N	N	N
3	Coöperative Katun DutchHoldco U.A.	Coöperative Katun DutchHoldco U.A.'s Subsidiaries	2	$447,066	$9,414 (USD300,000)	$9,414 (USD300,000)	$9,414 (USD300,000)	$-	0.34%	$447,066	N	N	N
4	GPI Co. (Samoa) Ltd.	GENERAL PLASTIC INDUSTRIAL CO., LTD.	3	$940,534	$846,220	$846,220	$-	$-	30.54%	$940,534	N	Y	N

Note: 1. a. The Company's total endorsement/guarantee amounts shall not exceed 100% of the Company's net value. The guarantee limit for endorsement of a single enterprise shall not exceed 100% of the Company's net worth. In addition to the above limit regulations, the amount of endorsement guarantee shall not exceed the total amount of transactions with the Company in the most recent year.
b. The calculation of individual and total limits is as follows:
Katun Holdings, LP.: USD41,967,057.60100%31.38=NT$1,316,926 thousand
Katun Corporation: USD19,262,562.49100%31.38=NT$604,459 thousand
Coöperative Katun DutchHoldco U.A.: USD14,246,846.21100%31.38=NT$447,066 thousand
GPI Co. (Samoa) Ltd.: USD29,972,404.88100%31.38=NTD940,534 thousand
2. The total endorsement/guarantee amounts shall not exceed 100% of lending company's net value. The Group endorsement/guarantee to a single enterprise shall not exceed 100% of the Company's net value. The Group policy requires that if the total amount of the endorsement/guarantee reaches more than 50% of the Company's net value, it shall be reported to the shareholders' meeting to explain its necessity and rationality.
3. The net value of the Company referred to above are based on the latest audited or reviewed financial statements.
4. According to the "Guidelines Governing the Preparation of Financial Reports by Securities Issuers" issued by the R.O.C. Securities and Futures Bureau, receiving parties should be disclosed as one of the following:
1. A company with which it does business.
2. A company in which the public company directly and indirectly holds more than 50% of the voting shares.
3. A company that directly and indirectly holds more than 50% of the voting shares in the public company.
4. A company in which the public company holds, directly or indirectly, 90% or more of the voting shares.
5. A company that fulfills its contractual obligations by providing mutual endorsements/guarantees for another company in the same industry or for joint builders for purposes of undertaking a construction project.
6. A company that all capital contributing shareholders make endorsements/guarantees for their jointly invested company in proportion to their shareholding percentages.
7. Companies in the same industry provide among themselves joint and several security for a performance guarantee of a sales contract for pre-construction homes pursuant to the Consumer Protection Act for each other.

C. Securities held at the end of the period (excluding subsidiaries, affiliates and joint ventures):

Held company	Securities type and name	Relationship with the securities issuer	Financial statement account	End of period
				Shares/Units	Book value	Ownership (%)	Market price/Fair value
	Bond
GPI Co. (Samoa) Ltd.	AMAZON.COM INC	None	Financial assets measured at fair value through profit or loss, current	790,000	$14,080	-	$14,080
GPI Co. (Samoa) Ltd.	APPLE INC	None	Financial assets measured at fair value through profit or loss, current	1,420,000	33,696	-	33,696
GPI Co. (Samoa) Ltd.	INTERNATIONAL BUSINESS MACHINES	None	Financial assets measured at fair value through profit or loss, current	1,400,000	39,717	-	39,717
GPI Co. (Samoa) Ltd.	MICROSOFT CORP	None	Financial assets measured at fair value through profit or loss, current	710,000	13,674	-	13,674
GPI Co. (Samoa) Ltd.	NVIDIA	None	Financial assets measured at fair value through profit or loss, current	1,000,000	23,327	-	23,327
GPI Co. (Samoa) Ltd.	PFIZER INVESTMENT ENTERPRISES PTE LTD	None	Financial assets measured at fair value through profit or loss, current	1,400,000	41,945	-	41,945
GPI Co. (Samoa) Ltd.	HSBC HOLDINGS PLC	None	Financial assets measured at fair value through profit or loss, current	990,000	32,115	-	32,115
GPI Co. (Samoa) Ltd.	CATHAYLIFE SINGAPORE	None	Financial assets measured at fair value through profit or loss, current	480,000	16,028	-	16,028
GPI Co. (Samoa) Ltd.	PROCTER & GAMBLE CO	None	Financial assets measured at fair value through profit or loss, current	460,000	15,717	-	15,717

Held company	Securities type and name	Relationship with the securities issuer	Financial statement account	End of period
				Shares/Units	Book value	Ownership (%)	Market price/Fair value
GPI Co. (Samoa) Ltd.	FWD GROUP HOLDINGS LTD	None	Financial assets measured at fair value through profit or loss, current	700,000	22,080	-	22,080
GPI Co. (Samoa) Ltd.	GREENSAIF PIPELINES BIDCO SARL	None	Financial assets measured at fair value through profit or loss, current	700,000	23,388	-	23,388
GPI Co. (Samoa) Ltd.	INTEL CORP	None	Financial assets measured at fair value through profit or loss, current	700,000	21,127	-	21,127
GPI Co. (Samoa) Ltd.	MCDONALD'S CORP	None	Financial assets measured at fair value through profit or loss, current	700,000	20,405	-	20,405
GPI Co. (Samoa) Ltd.	META PLATFORMS INC	None	Financial assets measured at fair value through profit or loss, current	700,000	21,100	-	21,100
GPI Co. (Samoa) Ltd.	VERIZON COMMUNICATI ONS INC	None	Financial assets measured at fair value through profit or loss, current	700,000	22,213	-	22,213
GPI Co. (Samoa) Ltd.	SWISS RE SUBORDINATED FINANCEVREN	None	Financial assets measured at fair value through profit or loss, current	800,000	26,133	-	26,133
GPI Co. (Samoa) Ltd.	BPLN	None	Financial assets measured at fair value through profit or loss, current	990,000	33,010	-	33,010
GPI Co. (Samoa) Ltd.	SAUDI ARABIAN OIL COMPANGY	None	Financial assets measured at fair value through profit or loss, current	650,000	19,872	-	19,872
GPI Co. (Samoa) Ltd.	ELECTRICITE DE FRANCE S.A.	None	Financial assets measured at fair value through profit or loss, current	650,000	20,056	-	20,056

Held company	Securities type and name	Relationship with the securities issuer	Financial statement account	End of period
				Shares/Units	Book value	Ownership (%)	Market price/Fair value
GPI Co. (Samoa) Ltd.	NIPPON LIFE INSURANCE COMPANY	None	Financial assets measured at fair value through profit or loss, current	570,000	19,211	-	19,211
GPI Co. (Samoa) Ltd.	SUMITOMO LIFE INSURANCE CO	None	Financial assets measured at fair value through profit or loss, current	650,000	20,648	-	20,648
GPI Co. (Samoa) Ltd.	MORGAN STANLEY	None	Financial assets measured at fair value through profit or loss, current	800,000	32,537	-	32,537
GPI Co. (Samoa) Ltd.	AVIVA PLC	None	Financial assets measured at fair value through profit or loss, current	310,000	14,075	-	14,075
Total	Stock				$546,154		$546,154
GPI Co. (Samoa) Ltd.	KHMER CAPITAL MICROFINANCE INSTITUTION PLC.	Related party	Financial assets measured at fair value through other comprehensive income, non-current	3,800,000	$101,341	19%	$101,341

D. Related party transactions for purchases and sales amounts reaching NT$100 million or 20% of the paid-in capital for the year ended December 31, 2025:

Company name	Counter-party	Relationship (Note1)	Transactions				Details of non-arm's length transaction		Notes and accounts receivable (payable)
			Purchases (Sales)	Amount	Percentage of total purchases (sales)	Term	Unit price	Term	Balance	Percentage of total receivables (payable)
GENERAL PLASTIC INDUSTRIAL CO., LTD.	Katun (E.D.C.) B.V.	1	Sales	$299,672	5.71%	Regular	Regular	Regular	$89,739	11.81%
GENERAL PLASTIC INDUSTRIAL CO., LTD.	Katun Corporation	1	Sales	$360,932	6.87%	Regular	Regular	Regular	$89,559	11.78%
Katun Corporation	PNA Holding Mexico S.A. de C.V.	2	Sales	$281,613	5.36%	Regular	Regular	Regular	$88,126	11.59%
Katun Corporation	Katun Brasil Comercio De Suprimentos Peças E Equipamentos LTDA	2	Sales	$110,838	2.11%	Regular	Regular	Regular	$27,368	3.60%
Katun Corporation	Katun (E.D.C.) B.V.	2	Sales	$407,464	7.76%	Regular	Regular	Regular	$177,665	23.38%
Katun (E.D.C.) B.V.	Katun Benelux B.V.	2	Sales	$365,360	6.96%	Regular	Regular	Regular	$26,977	3.55%
Katun (E.D.C.) B.V.	Katun Germany GmbH	2	Sales	$239,340	4.56%	Regular	Regular	Regular	$(28,143)	(6.15%)
Katun (E.D.C.) B.V.	Katun U.K. Ltd.	2	Sales	$309,459	5.89%	Regular	Regular	Regular	$15,409	2.03%

Company name	Counter-party	Relationship (Note1)	Transactions				Details of non-arm's length transaction		Notes and accounts receivable (payable)
			Purchases (Sales)	Amount	Percentage of total purchases (sales)	Term	Unit price	Term	Balance	Percentage of total receivables (payable)
Katun (E.D.C.) B.V.	Katun France S.A.R.L.	2	Sales	$347,742	6.62%	Regular	Regular	Regular	$6,965	0.92%
Katun (E.D.C.) B.V.	Katun Spain, S.A.	2	Sales	$207,059	3.94%	Regular	Regular	Regular	$(6,543)	(1.43%)
Katun (E.D.C.) B.V.	Katun Italy S.R.L.	2	Sales	$405,174	7.72%	Regular	Regular	Regular	$61,936	8.15%

Note 1: The transaction relationships with the counterparties are as follows:
(1) Parent company to subsidiary.
(2) Subsidiary to another subsidiary.

E. Receivables from related parties reaching NT$100 million or 20% of paid-in capital for the year ended December 31, 2025:

Company name	Related Party	Relationship (Note1)	Ending Balance	Turnover rate (times)	Overdue receivables		Amount received in subsequent period	Allowance for bad debts	Note
					Amount	Measure
Katun Corporation	Katun (E.D.C.) B.V.	2	$177,665	3.11	$-	-	$-	$-	Including other receivables
GPIKT DE, INC.	Katun Corporation	2	$156,900	-	$-	-	$-	$-	Other receivables

Note: 1. The transaction relationships with the counterparties are as follows:
(1) Parent company to subsidiary.
(2) Subsidiary to another subsidiary.

The calculation of turnover rate does not include other receivables - related parties.

F. Significant intercompany transactions between parent company and subsidiaries:

No (Note1)	Company name	Counter party	Nature of relationship (Note2)	Intercompany Transactions
				Financial statements item	Amount	Terms	Percentage of consolidated total gross sales or total assets (%) (Note3)
0	GENERAL PLASTIC INDUSTRIAL CO., LTD	Katun (E.D.C.) B.V.	1	Sales	$299,672	T/T120 days	5.71%
0	GENERAL PLASTIC INDUSTRIAL CO., LTD	Katun Corporation	1	Sales	$360,932	T/T120 days	6.87%
1	GPIKT DE, INC.	Katun Corporation	3	Other Receivables	$156,900	Financing at an interest rate of 7%	2.43%
2	Katun Corporation	Katun Brasil Comercio De Suprimentos Peças E Equipamentos LTDA	3	Sales	$110,838	T/T150 days	2.11%
2	Katun Corporation	PNA Holding Mexico SA DE CV	3	Sales	$281,613	T/T60 days	5.36%
2	Katun Corporation	Katun (E.D.C.) B.V.	3	Sales	$407,464	T/T60 days	7.76%
2	Katun Corporation	Katun (E.D.C.) B.V.	3	Other Receivables	$104,549	T/T60 days	1.62%
2	Katun Corporation	Katun (E.D.C.) B.V.	3	Other Income	$203,850	T/T60 days	3.88%
3	Katun (E.D.C.) B.V.	Katun Benelux B.V.	3	Sales	$365,360	T/T60 days	6.96%
3	Katun (E.D.C.) B.V.	Katun Germany GmbH	3	Sales	$239,340	T/T60 days	4.56%
3	Katun (E.D.C.) B.V.	Katun U.K. Ltd.	3	Sales	$309,459	T/T60 days	5.89%
3	Katun (E.D.C.) B.V.	Katun France S.A.R.L	3	Sales	$347,742	T/T60 days	6.62%
3	Katun (E.D.C.) B.V.	Katun Spain, S.A.	3	Sales	$207,059	T/T60 days	3.94%
3	Katun (E.D.C.) B.V.	Katun Italy S.R.L.	3	Sales	$405,174	T/T60 days	7.72%

Note 1: The information of transactions between the Company and the consolidated subsidiaries should be noted in "Number" column.
(1) Number 0 represents parent company.
(2) The consolidated subsidiaries are numbered in order from number 1.

Note 2: The transaction relationships with the counterparties are as follows:
(1) Parent company to subsidiary.
(2) Subsidiary to parent company.
(3) Subsidiary to subsidiary.

Note 3: Ratio of transaction amount to the consolidated income or assets is calculated as follows: for balance sheet accounts, the ratio is accounted as the ending balance to consolidated total assets; for income statement accounts, the ratio is based on interim accumulated amount to consolidated total revenue.

(2) Information of investees

Names, locations, main businesses and products, original investment amount, ownership, net income (loss) of investee company and investment income (loss) recognized as of December 31, 2025 (excluding investees in Mainland China):

Investor	Investee	Location	Main businesses and products	Original investment amount		Shares held at the end of period			Investment income (loss)	Investment income (loss) recognized by the Company	Note
				Ending balance	Prior ending balance	Number of shares	Ownership (%)	Book value
GENERAL PLASTIC INDUSTRIAL CO., LTD	JIOU FU CO., LTD.	Taiwan	Real Estate Trading and Tourist Hotel	$500,000	$565,000	50,000,000 shares	100%	$573,470	$68,744	$68,744
GENERAL PLASTIC INDUSTRIAL CO., LTD	GPI Co.(Samoa) Ltd.	Samoa	Investment and holding	$595,932 (USD20,000,000)	$595,932 (USD20,000,000)	20,000,000 shares	100%	$940,534	$7,372	$7,372
GENERAL PLASTIC INDUSTRIAL CO., LTD	GPIKT (BVI) CO., LTD	British Virgin Island	Investment and holding	$30 (USD1,000)	$30 (USD1,000)	1,000 shares	100%	$31	$-	$-
GENERAL PLASTIC INDUSTRIAL CO., LTD	GPIKT DE, INC.	USA	Investment and holding	$2,858,666 (USD97,100,000)	$2,858,666 (USD97,100,000)	971 shares	100%	$1,610,944	$(1,537,032)	$(1,545,548)	Note 1
Note 2
GENERAL PLASTIC INDUSTRIAL CO., LTD	TJ Office Solution Co.,Ltd.	Cambodia	Photocopiers rental	$6,939 (USD261,075)	$9,648 (USD347,529)	1,000 shares	100%	$34	$(668)	$(668)
GENERAL PLASTIC INDUSTRIAL CO., LTD	WEKARE Co., Ltd.	Taiwan	Selling of medical supplies	$20,000	$20,000	2,000,000 shares	100%	$888	$(108)	$(108)
GPIKT DE, INC.	KATUN HOLDINGS LP	USA	Investment and holding	$2,831,108 (USD96,132,708)	$2,831,108 (USD96,132,708)	211,621 shares	100%	$1,316,926	$(264,492)	Consolidated with subsidiary

Note 1. The investment income (loss) recognized by the Company for the period includes the investment income (loss) of the Company's indirect subsidiary.
2. If a public company holds a foreign holding company and regards the consolidated financial statements as the main financial statements pursuant to local laws and regulations, it could only disclose the related information of the foreign holding company.

(3) Information on investments in Mainland China:

A. The Company invested in Mainland China through Katun Asia Pte Ltd.(Singapore), and the related information is as follows:

Investee company	Main businesses and products	Total amount of paid-in capital	Method of investment (Note1)	Beginning accumulated outflow of investment from Taiwan	Investment flows for the period		Ending accumulated outflow of investment from Taiwan	Net income (loss) of investee company	Percentage of ownership	Investment income (loss) recognized	Carrying value as at end of the period	Accumulated inward remittance of earnings as at end of the period
					Outflow	Inflow
Katun (Shanghai) Co., Ltd.	Distributors of cartridges and consumables for printers, photocopiers, fax machines and multi-function machine	$9,910 (USD315,800)	(2)	$-	$-	$-	$-	$(1,437) (-USD46,228)	100%	$(1,437) (-USD46,228)	$(2,710) (-USD86,371)	None
Accumulated investment in Mainland China as of December 31, 2025	Investment amounts authorized by investment commission, MOEA (Note 2)	Upper limit on investment
---	---	---
		The lender’s net accounts value×60%
$-	$9,910 (USD315,800)	$1,662,376

Note1: Three types of investment methods:
(1) Direct investments.
(2) Indirect investments through a third-region company (please specify the investment company in the third region).
(3) Others.

Note2: The figures in this table are presented in New Taiwan Dollar. Current profit and investment income are converted by average exchange rate and others are converted by tear end exchange rate.

B. The information on significant transactions and prices, payments, etc. between the Company and the investee in Mainland China as of December, 31, 2025: None.

GENERAL PLASTIC INDUSTRIAL CO., LTD
STATEMENTS OF MAJOR ACCOUNTING ITEMS
FOR THE YEAR ENDED 31 DECEMBER 2025

ITEM	INDEX
STATEMENT OF CASH AND CASH EQUIVALENTS	1
STATEMENT OF ACCOUNTS RECEIVABLE	2
STATEMENT OF INVENTORIES	3
STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR UNDER THE EQUITY METHOD	4
STATEMENT OF CHANGES IN PROPERTY, PLANT AND EQUIPMENT	Note 6 (5)
STATEMENT OF CHANGES IN ACCUMULATED DEPRECIATION OF PROPERTY, PLANT AND EQUIPMENT	Note 6 (5)
STATEMENT OF CHANGES IN INVESTMENT PROPERTY	Note 6 (6)
STATEMENT OF CHANGES IN ACCUMULATED DEPRECIATION OF INVESTMENT PROPERTY	Note 6 (6)
STATEMENT OF SHORT-TERM LOANS	5
STATEMENT OF ACCOUNTS PAYABLE	6
STATEMENT OF OTHER PAYABLE	Note 6 (9)
STATEMENT OF LONG-TERM LOANS	7
STATEMENT OF NET OPERATING REVENUES	8
STATEMENT OF OPERATING COSTS	9
STATEMENT OF MANUFACTURING EXPENSES	10
STATEMENT OF OPERATING EXPENSES	11
SUMMARIZED STATEMENT OF EMPLOYEE BENEFITS, DEPRECIATION AND AMORTIZATION EXPENSES	Note 6 (15)
STATEMENT OF NON-OPERATING INCOME AND EXPENSES	Note 6 (16)

GENERAL PLASTIC INDUSTRIAL CO., LTD
1. STATEMENT OF CASH AND CASH EQUIVALENTS
31 DECEMBER 2025
(In Thousands of New Taiwan Dollars)

Item	Description	Amount	Note
Cash on hand		$246
Bank savings	Demand deposits-NTD	110,275
	Demand deposits-foreign currency	112,824	The main foreign currencies are as follows:
	Check Deposit - NTD	26	USD 3,428 thousand
			EUR 143 thousand
Total		$223,371

GENERAL PLASTIC INDUSTRIAL CO., LTD
2. STATEMENT OF ACCOUNTS RECEIVABLE
31 DECEMBER 2025
(In Thousands of New Taiwan Dollars)

Client Name	Description	Amount	Note
Non-related Parties
Client A		$15,335
Client B		12,233
Client C		7,397
Client D		4,461
Others (Note)		54,024
Subtotal		93,450
Less: loss allowance		(3,481)
Total		$89,969
Related parties
Katun EDC (B.V.)		$89,739
Katun Corporation		89,559
PNA Holdings Mexico
S.A. de C.V.		3,552
Total		$182,850

GENERAL PLASTIC INDUSTRIAL CO., LTD
3. STATEMENT OF INVENTORIES
31 DECEMBER 2025
(In Thousands of New Taiwan Dollars)

Item	Cost	Net realizable value	Note
Raw materials	$93,014	$88,355	Please refer to Note 4(9) for the benchmark of net realizable value.
Merchandises	5	29
Finished goods (Including Consignment Goods)	37,664	64,124
Work in progress	16,853	15,086
Goods in transit (Note)	41,304	41,304
Subtotal	188,840	$208,898
Less: Allowance for inventory valuation losses	(7,277)
Net amount	$181,563

(Note) Goods in transit include Raw Materials in Transit, Goods in Transit, Finished Goods in Transit and Work in Process in Transit.

GENERAL PLASTIC INDUSTRIAL CO., LTD
4. STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR UNDER THE EQUITY METHOD
FOR THE YEAR ENDED 31 DECEMBER 2025
(In Thousands of New Taiwan Dollars)

Name	As of 1 January 2025		Additions		Decrease		Unrealized profit or loss of sales	Investment income (losses)	Unrealized gains or losses on financial assets measured at fair value through other comprehensive income	Gains or losses on hedging instruments	Exchange differences	Earnings distribution	As of 31 December 2025			Collateral
	Shares	Fair Value	Shares	Amount	Shares	Amount							Shares	%	Amount
GPI Co. (Samoa) Ltd.	20,000,000	$973,382	-	$-	-	$-	$-	$7,372	$698	$-	$(40,918)	$-	20,000,000	100%	$940,534	None
JIOU FU CO., LTD.	56,500,000	592,304	-	-	(6,500,000)	(65,000)	-	68,744	-	-	-	(22,578)	50,000,000	100%	573,470	None
GPIKT (BVI) Co., Ltd.	1,000	33	-	-	-	-	-	-	-	-	(2)	-	1,000	100%	31	None
GPIKT DE, INC.	971	3,191,346	-	-	-	-	40,779	(1,545,548)	-	73	(75,706)	-	971	100%	1,610,944	None
WeKare Co., Ltd.	2,000,000	996	-	-	-	-	-	(108)	-	-	-	-	2,000,000	100%	888	None
TJ OFFICE SOLUTION CO., LTD	1,000	3,568	-	-	-	(2,709)	-	(668)	-	-	(157)	-	1,000	100%	34	None
Total		$4,761,629		$-		$(67,709)	$40,779	$(1,470,208)	$698	$73	$(116,783)	$(22,578)			$3,125,901

Note 1: The decrease in the current year was due to a capital reduction approved by the Board of Directors of JIOU FU CO., LTD. on May 9, 2025, with capital of NT$65,000 thousand remitted back to the Company.
Note 2: The decrease in the current year was due to the liquidation of TJ OFFICE SOLUTION CO., LTD., which was approved by the Board of Directors on December 23, 2022, with capital of NT$2,709 thousand (US$86 thousand) remitted back to the Company on November 28, 2025.
Note 3: The investment income and losses of investee companies recognized in this period include downstream and upstream transactions between these companies.

GENERAL PLASTIC INDUSTRIAL CO., LTD
5. STATEMENT OF SHORT-TERM LOANS
31 DECEMBER 2025
(In Thousands of New Taiwan Dollars)

Lenders	Type	Balance, End of Year	Contract Period	Interest rates applied (%)	Loan Commitments	Collateral
Bank of Taiwan	Secured loan	$360,000	2025/11/17~2027/02/13	1.8580%	1,200,000	Land and building
		40,000	2025/11/27~2026/02/25	1.8580%
		70,000	2025/12/05~2026/03/05	1.8580%
		30,000	2025/12/16~2026/03/16	1.8580%
Yuanta bank	Secured loan	200,000	2025/10/14~2026/01/13	1.8300%	200,000	Land and building
	Credit	200,000	2025/11/05~2026/02/03	1.8500%	200,000	None
Mega International Commercial Bank	Credit	20,000	2025/12/30~2026/03/30	1.8000%	150,000	None
		50,000	2025/11/27~2026/02/25	1.8000%		None
		55,000	2025/11/27~2026/02/25	1.8000%		None
The Export-Import Bank of ROC	Credit	75,000	2025/03/14~2026/03/14	1.5729%	150,000	None
		125,000	2025/03/14~2026/03/14	2.1015%	250,000	None
Land Bank of Taiwan	Credit	50,000	2025/12/04~2026/02/04	1.9000%	100,000	None
E.SUN COMMERCIAL BANK, LTD	Credit	70,000	2025/11/07~2026/02/06	1.8600%	300,000	None
Taiwan Cooperative Bank	Credit	10,000	2025/10/16~2026/10/16	1.9280%	50,000	None
Taipei Fubon Bank	Credit	200,000	2025/11/07~2026/05/06	1.8600%	300,000	None
HSBC Bank	Credit	80,000	2025/09/09~2026/01/09	1.8800%	300,000	None
		40,000	2025/11/11~2026/03/11	1.8853%		None
Total		$1,675,000

GENERAL PLASTIC INDUSTRIAL CO., LTD
6. STATEMENT OF ACCOUNTS PAYABLE
31 DECEMBER 2025
(In Thousands of New Taiwan Dollars)

Vendor Name	Description	Amount
Non-related Parties
Vendor A	Purchase	$6,983
Vendor B	Purchase	5,170
Vendor C	Purchase	4,815
Vendor D	Purchase	4,150
Vendor E	Purchase	3,560
Others (Note)	Purchase	43,902
Total		$68,580
Related parties
Katun EDC (B.V.)	Purchase	$850
Katun Asia Pte Ltd.(Singapore)	Purchase	492
PNA Holdings Mexico S.A. de C.V.	Purchase	8
Total		$1,350

(Note) The amount of individual client that exceeds 5% of the account balance is disclosed individually, the rest of the clients were disclosed in aggregation.

GENERAL PLASTIC INDUSTRIAL CO., LTD

STATEMENT OF LONG-TERM LOANS

FOR THE YEAR ENDED 31 DECEMBER 2025

(In Thousands of New Taiwan Dollars)

Lenders	Type	Balance, End of Year	Contract Period	Interest rates applied (%)	Loan Commitments	Collateral
Bank of Taiwan	Secured loan	$260,000	2024/02/21~2029/02/21	1.9926%	400,000	Land and building
Yuanta bank	Secured loan	300,000	2025/01/15~2027/01/15	1.9000%	300,000	Land and building
Total		$560,000

GENERAL PLASTIC INDUSTRIAL CO., LTD
8. STATEMENT OF NET OPERATING REVENUES
FOR THE YEAR ENDED 31 DECEMBER 2025
(In Thousands of New Taiwan Dollars)

Item	Shipments (Thousands Piece)	Amount
Cartridge for color copier	$4,287	$655,993
Cartridge for color printer	833	199,502
Cartridge for monochrome copier	764	109,646
Cartridge for monochrome printer	1,142	221,676
Precision gear for OPC drum and others	4,170	65,925
Total		$1,252,742

GENERAL PLASTIC INDUSTRIAL CO., LTD
9. STATEMENT OF OPERATING COSTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(In Thousands of New Taiwan Dollars)

Item	Amount	Note
1. Cost of sales of goods manufactured
Direct material: Raw material, beginning of year	$108,559
Add: Raw material purchased	464,582
Secondary processing	4,835
Raw material in transit, beginning of year	124
Gain on inventory surplus	1,875
Less: Raw material, end of year	93,014
Sale of raw material	54,915
Transferred to expenses	11,766
Scraps	4,024
Raw material in transit, end of year	855
Direct material used	415,401
Indirect material:
Add: Indirect material purchased	2,212
Less: Transferred to expense	2,212
Indirect material used	-
Direct labor	105,446
Manufacturing expenses (Refer to 10)	215,065
Processing expenditures	9,997
Manufacturing cost	330,508
Add: Work in progress, beginning of year	18,274
Work in progress purchased	31,047
Secondary processing	202,033
Gain on inventory surplus	22
Work in progress in transit beginning of year	2
Less: Work in progress, end of year	16,853
Sale of work in progress	438
Scraps	513
Transferred to expenses	522
Cost of dismantling work orders	833
Cost of trial-production orders	253
Cost of mold work orders	11,800
Cost of finished goods (Continued on next page)	220,166

Item	Amount	Note
Cost of finished goods (Continued from previous page)	220,166
Add: Finished goods, beginning of year	46,612
Finished goods in transit, beginning of year	39,699
Gain on inventory surplus	347
Less: Finished goods, end of year	37,664
Secondary processing	206,868
Scraps	1,397
Transferred to expenses	1,404
Outsourcing of semi-finished goods	30,842
Finished goods in transit, end of year	40,422
Other	380
Cost of sales of goods manufactured	733,756
2. Cost of sales of goods purchased
Merchandise, beginning of year	51
Add: Merchandise purchased	34,891
Merchandise in transit, beginning of year	133
Less: Transferred to expense	3
Scraps	6
Merchandise, end of year	5
Merchandise in transit, end of year	27
Cost of sales of goods purchased	35,034
3. Cost of sales of raw material and work in progress
Cost from sale of raw material	54,915
Cost from sale of work in progress	438
Cost of sales of raw material and work in progress	55,353
4. Adjustment
Add: Idle capacity	4,303
Inventory scrap loss	5,940
Others	1,393
Less: Purchased on behalf of others	50,896
Gain on inventory surplus	2,244
Gain from price recovery of inventories	1,182
Operating cost=1.+2.+3.+4.	$781,457

GENERAL PLASTIC INDUSTRIAL CO., LTD
10. STATEMENT OF MANUFACTURING EXPENSES
FOR THE YEAR ENDED 31 DECEMBER 2025
(In Thousands of New Taiwan Dollars)

Item	Amount	Note
Indirect labor	$84,156
Depreciation	33,979
Insurance expense	25,669
Indirect material	19,948
Utilities expense	16,585
Amortization	132
Others (Note)	34,596
Total	$215,065

(Note) The amount of individual client that exceeds 5% of the account balance is disclosed individually, the rest of the clients were disclosed in aggregation.

101

GENERAL PLASTIC INDUSTRIAL CO., LTD
11. STATEMENT OF OPERATING EXPENSES
FOR THE YEAR ENDED 31 DECEMBER 2025
(In Thousands of New Taiwan Dollars)

Item	Selling and Marketing Expenses	General and Administrative Expenses	Research and Development Expenses	Expected credit losses	Total
Payroll expense	$16,881	$56,488	$23,896	$-	$97,265
Depreciation	2,205	29,565	5,055	-	36,825
Export expense	31,858	36	141	-	32,035
Professional service fees	82	8,171	4,690	-	12,943
Consumables expense	20	63	13,412	-	13,495
Amortization	50	10,886	660	-	11,596
Internet Service Fees	902	8,622	1,200	-	10,724
Travel expense	4,505	3,054	983	-	8,542
Remuneration of directors and supervisors	-	7,934	-	-	7,934
Advertising expense	4,141	24	-	-	4,165
Expected credit losses	-	-	-	376	376
Others (Note)	11,607	26,754	12,177	-	50,538
Total	$72,251	$151,597	$62,214	$376	$286,438

(Note) The amount of individual client that exceeds 5% of the account balance is disclosed individually, the rest of the clients were disclosed in aggregation.

102

AI assistant

GPI Audit Report / Information 2025

52506_rns_2026-06-02_341a2c3d-551c-48a8-9054-f3f133417665.pdf

Inventory Valuation

Investments accounted for using the equity method- subsidiaries' goodwill impairment

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

Auditors' Responsibilities for the Audit of the Parent Company Only Financial Statements

Notice to Readers

Financial liabilities at fair value through profit or loss

Financial liabilities at amortized cost

Derecognition of financial liabilities

Offsetting of financial instruments

(8) Derivative instrument

The Company as a lessee

The Company as a lessor

(15) Intangible assets

Interest rate risk

(4) Credit risk management

(5) Liquidity risk management

AI assistant

GPI — Audit Report / Information 2025

52506_rns_2026-06-02_341a2c3d-551c-48a8-9054-f3f133417665.pdf

Inventory Valuation

Investments accounted for using the equity method- subsidiaries' goodwill impairment

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

Auditors' Responsibilities for the Audit of the Parent Company Only Financial Statements

Notice to Readers

Financial liabilities at fair value through profit or loss

Financial liabilities at amortized cost

Derecognition of financial liabilities

Offsetting of financial instruments

(8) Derivative instrument

The Company as a lessee

The Company as a lessor

(15) Intangible assets

Interest rate risk

(4) Credit risk management

(5) Liquidity risk management

More from GPI

GPI Audit Report / Information 2025