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HSING TA CEMENT CO., LTD.
PARENT COMPANY ONLY FINANCIAL
STATEMENTS AND INDEPENDENT AUDITORS’
REPORT
DECEMBER 31, 2025 AND 2024

For the convenience of readers and for information purpose only, the auditors’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors’ report and financial statements shall prevail.

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INDEPENDENT AUDITORS' REPORT TRANSLATED FROM CHINESE

To the Board of Directors and Shareholders of Hsing Ta Cement Co., Ltd.

Opinion

We have audited the accompanying parent company only balance sheets of Hsing Ta Cement Co., Ltd. (the “Company”) as at December 31, 2025 and 2024, and the related parent company only statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the parent company only financial statements, including a summary of material accounting policies.

In our opinion, based on our audits and the reports of other independent auditors, the accompanying parent company only financial statements present fairly, in all material respects, the financial position of the Company as at December 31, 2025 and 2024, and its parent company only financial performance and its parent company only cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for opinion

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

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Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Company’s 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, we do not provide a separate opinion on these matters.

Key audit matters for the Company’s 2025 parent company only financial statements are stated as follows:

Occurrence of revenue recognition of cement sales

Description

Please refer to Note 4(26) of the financial statements for accounting policies on revenue recognition and Note 6(17) for details of operating revenue.

The Company’s operating revenue mainly consists of cement sales revenue, revenue from recycling and treatment and rental revenue. The revenue from cement sales amounted to NTD 1,710,481 thousand, constituting 92.92% of the 2025 operating revenue. The price of cement often fluctuates due to the prices of raw materials, market supply and demand as well as the general economic situation. Sales prices and order quantities are based on the contracts signed with individual customers. Cement sales revenue is recognised when customers collect the cement, which is based on the dispatch report prepared by the cement factory according to actual collection situation. The Company’s counterparties are numerous, and the types of products, the related prices and the qualities are various. Also, the information process, recording and maintenance of the relevant reports mainly relies on manual operation. Therefore, more audit staff were required to perform the procedures. Additionally, since the cement sales revenue is material to the financial statements and the Company’s subsidiaries, which are accounted for using equity method, have the same matters as the aforementioned, we consider the occurrence of revenue recognition of cement sales of the Company and its subsidiaries as a key audit matter.

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How our audit addressed the matter

We performed the following audit procedures in respect of the above key audit matter:

Assessed the reasonableness of revenue recognition policies and procedures for cement sales based on our understanding of the Company’s business and the industry it operates in, and confirmed that these were consistently applied in the financial statements.
Obtained an understanding of the order, collection and delivery processes, and assessed as well as tested the relevant internal control procedures including sample testing the prices and quantities on the cement order reports and agreed them with the records on the cement sales register cards and the collection reports as well as checking whether the quantities on the collection report were consistent with the records on the delivery sheets and the daily dispatch reports.
Verified the monthly dispatch report used by the management for revenue recognition, including sample testing the quantities on the reports whether they were consistent with the records on the daily dispatch report, and recalculating the amount of the revenue and agreeing them with the recorded revenue.

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 Regulations Governing the Preparation of Financial Reports by Securities Issuers, and for such internal control as management determines is necessary to enable the preparation of parent company only financial statements that are free from material misstatement, whether due to fraud or error.

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

Those charged with governance, including the audit committee, are responsible for overseeing the Company’s financial reporting process.

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

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

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Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the 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 disclosures, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.

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

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

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

YU, CHENG-FU

Chih, Ping-Chiun

For and on behalf of PricewaterhouseCoopers, Taiwan

March 12, 2026

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

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

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

Assets	Notes	December 31, 2025		December 31, 2024
		AMOUNT	%	AMOUNT	%
Current assets
1100	Cash and cash equivalents	6(1)	$ 1,538,550	18	$ 1,583,848	18
1110	Financial assets at fair value through	6(2)
	profit or loss - current		24,843	-	25,409	-
1150	Notes receivable, net	6(4)	98,191	1	61,284	1
1160	Notes receivable - related parties	6(4) and 7	23,007	-	26,046	-
1170	Accounts receivable, net	6(4)	67,651	1	29,372	1
1200	Other receivables		1,366	-	1,737	-
130X	Inventories	6(5)	434,295	5	509,280	6
1410	Prepayments		6,610	-	14,257	-
11XX	Current assets		2,194,513	25	2,251,233	26
Non-current assets
1510	Financial assets at fair value through	6(2)
	profit or loss - non-current		221,530	3	204,077	2
1535	Financial assets at amortised cost-	6(3) and 8
	non-current		285,376	3	264,849	3
1550	Investments accounted for under	6(6) and 7
	equity method		3,648,901	42	3,612,702	42
1600	Property, plant and equipment	6(7)	859,653	10	792,687	9
1755	Right-of-use assets	6(8)	41,714	-	49,233	1
1760	Investment property - net	6(10)	1,411,066	16	1,417,527	16
1840	Deferred income tax assets	6(24)	30,806	-	34,614	-
1900	Other non-current assets	9(2)	100,745	1	81,677	1
15XX	Non-current assets		6,599,791	75	6,457,366	74
1XXX	Total assets		$ 8,794,304	100	$ 8,708,599	100

(Continued)

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

Liabilities and Equity	Notes	December 31, 2025		December 31, 2024
		AMOUNT	%	AMOUNT	%
Current liabilities
2130	Current contract liabilities	6(17) and 7	$ 81,833	1	$ 56,520	1
2170	Accounts payable		56,168	1	48,486	1
2200	Other payables		150,151	2	135,404	1
2230	Current income tax liabilities		10,800	-	35,646	-
2250	Current provisions	6(12)	9,528	-	-	-
2280	Current lease liabilities	6(27)	9,220	-	8,770	-
2300	Other current liabilities		979	-	947	-
21XX	Current Liabilities		318,679	4	285,773	3
Non-current liabilities
2570	Deferred income tax liabilities	6(24)	33,078	-	31,668	1
2580	Non-current lease liabilities	6(27)	44,400	1	52,276	1
2640	Accrued pension liabilities	6(11)	15,402	-	22,125	-
2645	Guarantee deposits received	6(27)	17,866	-	18,044	-
25XX	Non-current liabilities		110,746	1	124,113	2
2XXX	Total liabilities		429,425	5	409,886	5
Equity
	Share capital	6(13)
3110	Share capital - common stock		3,411,589	39	3,411,589	39
	Capital surplus	6(14)
3200	Capital surplus		15,962	-	15,724	-
	Retained earnings	6(15)
3310	Legal reserve		1,771,729	20	1,723,394	20
3320	Special reserve		86,109	1	193,155	2
3350	Unappropriated retained earnings		3,149,400	36	3,040,960	35
	Other equity interest	6(16)
3400	Other equity interest		( 69,910)	( 1)	( 86,109)	( 1)
3XXX	Total equity		8,364,879	95	8,298,713	95
	Significant contingent liabilities and unrecognised contract commitments	9
	Significant events after the balance sheet date	11
3X2X	Total liabilities and equity		$ 8,794,304	100	$ 8,708,599	100

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

HSING TA CEMENT CO., LTD.

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

	Items	Notes	Year ended December 31
			2025		2024
			AMOUNT	%	AMOUNT	%
4000	Sales revenue	6(9)(10)(17) and 7	$ 1,840,865	100	$ 2,004,314	100
5000	Operating costs	6(5)(10)(22)(23) and 7	( 1,442,664)	( 78)	( 1,426,271)	( 71)
5900	Gross profit		398,201	22	578,043	29
5910	Unrealized profit from sales		( 311)	-	( 321)	-
5920	Realized profit from sales		321	-	466	-
5950	Net operating margin		398,211	22	578,188	29
	Operating expenses	6(22)(23) and 7
6100	Selling expenses		( 35,237)	( 2)	( 37,754)	( 2)
6200	General and administrative expenses		( 62,482)	( 3)	( 76,058)	( 4)
6450	Expected credit losses	12(2)	( 22)	-	( 27)	-
6000	Total operating expenses		( 97,741)	( 5)	( 113,839)	( 6)
6900	Operating profit		300,470	17	464,349	23
	Non-operating income and expenses
7100	Interest income	6(18)	23,181	1	28,329	1
7010	Other income	6(19)	33,899	2	23,756	1
7020	Other gains and losses	6(20)	7,780	-	( 18,196)	( 1)
7050	Finance costs	6(21)	( 1,707)	-	( 1,784)	-
7070	Share of profit of associates and joint ventures accounted for using equity method, net	6(6)
			70,063	4	90,277	5
7000	Total non-operating income and expenses		133,216	7	122,382	6
7900	Profit before income tax		433,686	24	586,731	29
7950	Income tax expense	6(24)	( 82,523)	( 5)	( 117,333)	( 6)
8200	Profit for the year		$ 351,163	19	$ 469,398	23
	Other comprehensive income
	Components of other comprehensive income that will not be reclassified to profit or loss
8311	Actuarial gain on defined benefit plan	6(11)	$ 6,673	-	$ 17,249	1
8330	Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss		271	-	157	-
8349	Income tax related to components of other comprehensive income that will not be reclassified to profit or loss	6(24)	( 1,335)	-	( 3,450)	-
8310	Components of other comprehensive (loss) income that will not be reclassified to profit or loss		5,609	-	13,956	1
	Components of other comprehensive income that will be reclassified to profit or loss
8361	Exchange differences on translation		16,199	1	107,046	5
8360	Components of other comprehensive income(loss) that will be reclassified to profit or loss		16,199	1	107,046	5
8300	Other comprehensive income for the year		$ 21,808	1	$ 121,002	6
8500	Total comprehensive income for the year		$ 372,971	20	$ 590,400	29
	Basic earnings per share	6(25)
9750	Total basic earnings per share		$	1.03	$	1.38
9850	Total diluted earnings per share		$	1.03	$	1.37

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

HSING TA CEMENT CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY

YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

	Notes	Share capital - common stock	Capital surplus		Retained earnings			Other equity interest	Total equity
			Treasury stock transactions	Others	Legal reserve	Special reserve	Unappropriated retained earnings	Financial statements translation differences of foreign operations
2024
Balance at January 1		$ 3,411,589	$ 14,534	$ 1,163	$ 1,655,263	$ 136,484	$ 3,091,799	($ 193,155)	$ 8,117,677
Profit for the year		-	-	-	-	-	469,398	-	469,398
Other comprehensive income for the year 6(6)(16)		-	-	-	-	-	13,956	107,046	121,002
Total comprehensive income		-	-	-	-	-	483,354	107,046	590,400
Appropriations and distribution of 2023 6(15) retained earnings:
Legal reserve appropriated		-	-	-	68,131	-	( 68,131 )	-	-
Special reserve		-	-	-	-	56,671	( 56,671 )	-	-
Cash dividends		-	-	-	-	-	( 409,391 )	-	( 409,391 )
Expired unclaimed dividends transferred to capital surplus		-	-	27	-	-	-	-	27
Balance at December 31		$ 3,411,589	$ 14,534	$ 1,190	$ 1,723,394	$ 193,155	$ 3,040,960	($ 86,109)	$ 8,298,713
2025
Balance at January 1		$ 3,411,589	$ 14,534	$ 1,190	$ 1,723,394	$ 193,155	$ 3,040,960	($ 86,109)	$ 8,298,713
Profit for the year		-	-	-	-	-	351,163	-	351,163
Other comprehensive income	6(6)(16)	-	-	-	-	-	5,609	16,199	21,808
Total comprehensive income		-	-	-	-	-	356,772	16,199	372,971
Appropriations and distribution of 2024 6(15) retained earnings:
Legal reserve appropriated		-	-	-	48,335	-	( 48,335 )	-	-
Special reserve reversed		-	-	-	-	( 107,046 )	107,046	-	-
Cash dividends		-	-	-	-	-	( 307,043 )	-	( 307,043 )
Expired unclaimed dividends transferred to capital surplus		-	-	238	-	-	-	-	238
Balance at December 31		$ 3,411,589	$ 14,534	$ 1,428	$ 1,771,729	$ 86,109	$ 3,149,400	($ 69,910)	$ 8,364,879

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

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HSING TA CEMENT CO., LTD.

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

	Year ended December 31
	Notes	2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax		$ 433,686	$ 586,731
Adjustments
Adjustments to reconcile profit (loss)
Depreciation expense	6(7)(8)(10)(22)	93,200	88,918
Expected credit loss	12(2)	22	27
Net loss (gain) on financial assets at fair value through profit or loss	6(2)(20)
Interest expense	6(8)(21)	1,707	1,784
Interest income	6(18)	(23,181)	(28,329)
Dividend revenue	6(19)	(11,381)	(13,253)
Share of profit of associates and joint ventures	6(6)
accounted for using equity method		(70,063)	(90,277)
Loss on disposal of property, plant and equipment	6(20)	9,360	4,925
Unrealized gain from sale		311	321
Realized gain from sale		(321)	(466)
Changes in operating assets and liabilities
Changes in operating assets
Notes receivable, net		(36,918)	68,234
Notes receivable - related parties		3,039	7,997
Accounts receivable, net		(38,290)	34,138
Other receivables		298	227
Inventories		74,985	(125,767)
Prepayments		7,647	5,716
Changes in operating liabilities
Current contract liabilities		25,313	(8,494)
Accounts payable		7,682	(10,111)
Other payables		14,747	(52,167)
Current provisions		9,528	-
Other current liabilities		32	(1,071)
Net defined benefit liability		(50)	(17)
Cash inflow generated from operations		478,437	506,690
Interest paid		(1,544)	(1,706)
Income taxes paid		(103,486)	(130,448)
Net cash flows from operating activities		373,407	374,536

(Continued)

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

	Notes	Year ended December 31
		2025	2024
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of financial assets at amortised cost		($ 20,043 )	($ 48,379 )
Proceeds from disposal of financial assets at fair value through profit or loss		6,029	-
Acquisition of property, plant and equipment (including prepayment for business facilities)	6(26)	( 134,886 )	( 143,174 )
Proceeds from disposal of property, plant and equipment		670	415
Increase in refundable deposits		( 1,369 )	( 231 )
Acquisition of investment property	6(10)	( 2,130 )	( 1,762 )
Interest received		22,607	30,241
Dividends received	6(6)(19)	61,725	170,762
(Increase) decrease in other non-current assets, others		( 34,897 )	1,981
Net cash flows (used in) from investing activities		( 102,294 )	9,853
CASH FLOWS FROM FINANCING ACTIVITIES
(Decrease) increase in guarantee deposits received	6(27)	( 178 )	151
Payments of lease liabilities	6(27)	( 9,428 )	( 16,907 )
Cash dividend paid	6(15)	( 307,043 )	( 409,391 )
Expired unclaimed dividends transferred to capital surplus		238	27
Net cash flows used in financing activities		( 316,411 )	( 426,120 )
Net decrease in cash and cash equivalents		( 45,298 )	( 41,731 )
Cash and cash equivalents at beginning of year		1,583,848	1,625,579
Cash and cash equivalents at end of year		$ 1,538,550	$ 1,583,848

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

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HSING TA CEMENT CO., LTD.

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

1. History and Organisation

Hsing Ta Cement Co., Ltd. (the “Company”) was incorporated as company limited by shares under the provisions of the Company Act of the Republic of China (R.O.C.) and the Company’s shares have been approved by Securities Commission, Ministry of Finance to be listed on October 7, 1991. The Company was primarily engaged in quarrying, processing, warehousing and distribution of minerals, manufacturing, processing, warehousing and distribution of limestone chemicals, cement and limestone related industry, treatment of general waste, sales and leasing of real estate, consultancy of building management, etc.

2. The Date of Authorisation for Issuance of the Financial Statements and Procedures for Authorisation

These financial statements were authorised for issuance by the Board of Directors on March 12, 2026.

3. Application of New Standards, Amendments and Interpretations

(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRS®”) Accounting Standards that came into effect as endorsed by the Financial Supervisory Commission (“FSC”)

New standards, interpretations and amendments that came into effect as endorsed by the FSC an became effective from 2025 are as follows:

New Standards, Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IAS 21, ‘Lack of exchangeability’	January 1, 2025

The above standards and interpretations have no significant impact to the Company’s financial condition and financial performance based on the Company’s assessment.

(2) Effect of new issuances of or amendments to IFRS Accounting Standards as endorsed by the FSC but not yet adopted by the Company

New standards, interpretations and amendments endorsed by the FSC effective from 2026 are as follows:

New Standards, Interpretations and Amendments	Effective date by International Accounting Standards Board
Specific provisions of Amendments to IFRS 9 and IFRS 7, ‘Amendments to the classification and measurement of financial instruments’	January 1, 2026
Amendments to IFRS 9 and IFRS 7, ‘Contracts referencing nature-dependent electricity’	January 1, 2026
IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendments to IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendment to IFRS 17, ‘Initial application of IFRS 17 and IFRS 9 – comparative information’	January 1, 2023
Annual Improvements to IFRS Accounting Standards—Volume 11	January 1, 2026
The above standards and interpretations have no significant impact to the Company’s financial condition and financial performance based on the Company’s assessment.
(3) IFRS Accounting Standards issued by IASB but not yet endorsed by the FSC
New standards, interpretations and amendments issued by IASB but not yet included in the IFRS Accounting Standards as endorsed by the FSC are as follows:
New Standards, Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between an investor and its associate or joint venture’	To be determined by International Accounting Standards Board
IFRS 18, ‘Presentation and disclosure in financial statements’	January 1, 2027 (Note)
IFRS 19, ‘Subsidiaries without public accountability: disclosures’	January 1, 2027
Amendments to IAS 21, ‘Translation to a Hyperinflationary Presentation Currency’	January 1, 2027
Note : The FSC has announced in a press release on September 25, 2025 that public companies will apply IFRS 18 starting from the fiscal year 2028. Additionally, entities can choose to adopt IFRS 18 earlier based on their requirements after the FSC endorses IFRS 18.
Except for the following, the Company expects that the above standards and interpretations have no significant impact to the Company’s consolidated financial statements.
IFRS 18, ‘Presentation and disclosure in financial statements’
IFRS 18, ‘Presentation and disclosure in financial statements’ replaces IAS 1. The standard introduces a defined structure of the statement of profit or loss, disclosure requirements related to management-defined performance measures, and enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes. The quantitative impact will be disclosed when the assessment is complete.

4. Summary of Material Accounting Policies

The principal accounting policies applied in the preparation of the parent company financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

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

(2) Basis of preparation

A. Except for the following items, the financial statements have been prepared under the historical cost convention:

(a) Financial assets at fair value through profit or loss.

(b) Defined benefit liabilities recognised based on the net amount of pension fund assets less present value of defined benefit obligation.

B. The preparation of financial statements in conformity with IFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in Note 5.

(3) Foreign currency translation

The financial statements are presented in New Taiwan dollars, which is the Company’s functional currency.

A. Foreign currency transactions and balances

(a) Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognised in profit or loss in the period in which they arise.

(b) Monetary assets and liabilities denominated in foreign currencies at the period end are re-translated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognised in profit or loss.

(c) Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in other comprehensive income. However, non-monetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.

(d) All other foreign exchange gains and losses based on the nature of those transactions are presented in the statement of comprehensive income within ‘other gains and losses’.

~16~

B. Translation of foreign operations

(a) The operating results and financial position of all the associates and subsidiaries that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

i. Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;

ii. Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and

iii. All resulting exchange differences are recognised in other comprehensive income.

(b) When the foreign operation partially disposed of or sold is a subsidiary, cumulative exchange differences that were recorded in other comprehensive income are proportionately transferred to the non-controlling interest in this foreign operation. In addition, even when the Company retains partial interest in the former foreign subsidiary after losing control of the former foreign subsidiary, such transactions should be accounted for as disposal of all interest in the foreign operation.

(4) Classification of current and non-current items

A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets:

(a) Assets arising from operating activities that are expected to be realised, or are intended to be sold or consumed within the normal operating cycle;

(b) Assets that are held primarily for the purpose of trading;

(d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities for at least twelve months after the reporting period.

B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities:

(a) Liabilities that are expected to be settled within the normal operating cycle;

(b) Liabilities that are held primarily for the purpose of trading;

(d) It does not have the right at the end of the reporting period to defer settlement of the liability at least twelve months after the reporting period.

(5) Cash equivalents

Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Time deposits that meet the definition above and are held for the purpose of meeting short-term cash commitments in operations are classified as cash equivalents.

(6) Financial assets at fair value through profit or loss

A. Financial assets at fair value through profit or loss are financial assets that are not measured at amortised cost or fair value through other comprehensive income.

~17~

B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognized and derecognized using trade date accounting.

C. At initial recognition, the Company measures the financial assets at fair value and recognises the transaction costs in profit or loss. The Company subsequently measures the financial assets at fair value, and recognizes the gain or loss in profit or loss.

D. The Company recognises the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Company and the amount of the dividend can be measured reliably.

(7) Financial assets at amortised cost

A. Financial assets at amortised cost are those that meet all of the following criteria:

(a) The objective of the Company’s business model is achieved by collecting contractual cash flows.

(b) The assets’ contractual cash flows represent solely payments of principal and interest.

B. On a regular way purchase or sale basis, financial assets at amortised cost are recognised and derecognised using trade date accounting.

C. The Company’s time deposits which do not fall under cash equivalents are those with a short maturity period and are measured at initial investment amount as the effect of discounting is immaterial.

(8) Accounts and notes receivable

A. Accounts and notes receivable entitle the Company a legal right to receive consideration in exchange for transferred goods or rendered services.

B. The short-term accounts and notes receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(9) Impairment of financial assets

For financial assets at amortised cost at each reporting date, the Company recognises the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognises the impairment provision for the lifetime expected credit losses (ECLs) if such credit risk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand, for accounts receivable or contract assets that do not contain a significant financing component, the Company recognises the impairment provision for lifetime ECLs.

(10) Derecognition of financial assets

The Company derecognises a financial asset when one of the following conditions is met:

A. The contractual rights to receive the cash flows from the financial asset expire.

B. The contractual rights to receive cash flows of the financial asset have been transferred and the Company has transferred substantially all risks and rewards of ownership of the financial asset.

C. The contractual rights to receive cash flows of the financial asset have been transferred; however, the Company has not retained control of the financial asset.

~18~

(11) Leasing arrangements (lessor) - operating leases

Lease income from an operating lease (net of any incentives given to the lessee) is recognised in profit or loss on a straight-line basis over the lease term.

(12) Inventories

Inventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted-average method. The cost of finished goods and work in progress comprises raw materials, direct labour, other direct costs and related production overheads (allocated based on normal operating capacity), but excludes borrowing costs. The item by item approach is used in applying the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and applicable variable selling expenses.

(13) Investments accounted for using equity method / subsidiaries and associates

A. Subsidiaries are all entities (including structured entities) controlled by the Company. The Company controls an entity when the Company is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

B. Unrealised gains on transactions between the Company and its subsidiaries are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Company.

C. The Company's share of its subsidiaries' post-acquisition profits or losses is recognised in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income. When the Company's share of losses in a subsidiary equals or exceeds its interest in the subsidiary, the Company recognise loss continuously in proportion to its ownership.

D. Upon loss of significant influence over an associate, the Company remeasures any investment retained in the former associate at its fair value. Any difference between fair value and carrying amount is recognised in profit or loss.

E. Associates are all entities over which the Company has significant influence but not control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for using the equity method and are initially recognised at cost.

F. The Company's share of its associates' post-acquisition profits or losses is recognised in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income. When the Company's share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Company does not recognise further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.

~19~

G. When changes in an associate’s equity do not arise from profit or loss or other comprehensive income of the associate and such changes do not affect the Company’s ownership percentage of the associate, the Company recognises the Company’s share of change in equity of the associate in ‘capital surplus’ in proportion to its ownership.

H. Unrealized gains on transactions between the Company and its associates are eliminated to the extent of the Company’s interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been adjusted where necessary to ensure consistency with the policies adopted by the Company.

I. In the case that an associate issues new shares and the Company does not subscribe or acquire new shares proportionately, which results in a change in the Company’s ownership percentage of the associate but maintains significant influence on the associate, then ‘capital surplus’ and ‘investments accounted for under the equity method’ shall be adjusted for the increase or decrease of its share of equity interest. If the above condition causes a decrease in the Company’s ownership percentage of the associate, in addition to the above adjustment, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately on the same basis as would be required if the relevant assets or liabilities were disposed of.

J. When the Company disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate, are reclassified to profit or loss, on the same basis as would be required if the relevant assets or liabilities were disposed of. If it retains significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately in accordance with the aforementioned approach.

K. In accordance with “Regulations Governing the Preparation of Financial Reports by Securities Issuers”, the profit or loss and other comprehensive income or loss presented on the parent company only financial statements are consistent with those presented on the consolidated financial statements. In addition, owner’s equity presented on the parent company only financial statements is consistent with equity attributable to owners of parent presented on the consolidated financial statements.

(14) Property, plant and equipment

A. Property, plant and equipment are initially recorded at cost.

B. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

~20~

C. Property, plant and equipment are measured at cost model subsequently. Land is not depreciated. Other property, plant and equipment are depreciated using the straight-line method over their estimated useful lives. 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 must be depreciated separately.

D. The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year-end. If expectations for the assets' residual values and useful lives differ from previous estimates or the patterns of consumption of the assets' future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, 'Accounting Policies, Changes in Accounting Estimates and Errors', from the date of the change. The estimated useful lives of property, plant and equipment are as follows:

Buildings and structures	3 ~ 60 years
Machinery and equipment	3 ~ 15 years
Transportation equipment	3 ~ 10 years
Office equipment	5 ~ 10 years
Other equipment	2 ~ 20 years

(15) Leasing arrangements (lessee) - right-of-use assets/ lease liabilities

A. Leases are recognised as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Company. For short-term leases or leases of low-value assets, lease payments are recognised as an expense on a straight-line basis over the lease term.

B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payments are comprised of the following:

(a) Fixed payments, less any lease incentives receivable; and
(b) Variable lease payments that depend on an index or a rate.

The Company subsequently measures the lease liability at amortised cost using the interest method and recognises interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognised as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

C. At the commencement date, the right-of-use asset is stated at cost comprising the following:

(a) The amount of the initial measurement of lease liability;
(b) Any lease payments made at or before the commencement date; and
(c) Any initial direct costs incurred by the lessee.

The right-of-use asset is measured subsequently using the cost model and is depreciated from the commencement date to the earlier of the end of the asset's useful life or the end of the lease term. When the lease liability is remeasured, the amount of remeasurement is recognised as an adjustment to the right-of-use asset.

~21~

D. For lease modifications that decrease the scope of the lease, the lessee shall decrease the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease, and recognise the difference between remeasured lease liability in profit or loss. For all other lease modifications, the lessee shall remeasure the lease liability and adjust the right-of-use asset, correspondingly.

(16) Investment property

An investment property is stated initially at its cost and measured subsequently using the cost model. Except for land, investment property is depreciated on a straight-line basis over its estimated useful life of $3 \sim 55$ years.

(17) Impairment of non-financial assets

The Company assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell or value in use. When the circumstances or reasons for recognising impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortised historical cost would have been if the impairment had not been recognised.

(18) Borrowings

Borrowings comprise long-term and short-term bank borrowings and other long-term and short-term loans. Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in profit or loss over the period of the borrowings using the effective interest method.

(19) Notes and accounts payable

A. Accounts payable are liabilities for purchases of raw materials, goods or services and notes payable are those resulting from operating and non-operating activities.

B. The short-term notes and accounts payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(20) Derecognition of financial liabilities

A financial liability is derecognised when the obligation specified in the contract is either discharged or cancelled or expires.

(21) Offsetting financial instruments

Financial assets and liabilities are offset and reported in the net amount in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously.

(22) Employee benefits

A. Short-term employee benefits

Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid and are recognised as expenses in the period in which the employees render service.

~22~

B. Pensions

(a) Defined contribution plans

For the defined contribution plans, the contributions are recognised as pension expense when they are due on an accrual basis. Prepaid contributions are recognised as an asset to the extent of a cash refund or a reduction in the future payments.

(b) Defined benefit plans

i. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Company in current period or prior periods. The liability recognised in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability; when there is no deep market in high-quality corporate bonds, the Company uses interest rates of government bonds (at the balance sheet date) instead.

ii. Remeasurements arising on the defined benefit plans are recognised in other comprehensive income in the period in which they arise and are recorded as retained earnings.

iii. Past service costs are recognised immediately in profit or loss.

C. Employees' compensation and directors' remuneration

Employees' compensation and directors' remuneration are recognised as expense and liability, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates.

(23) Income tax

A. The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or items recognised directly in equity, in which cases the tax is recognised in other comprehensive income or equity.

B. The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.

~23~

C. Deferred tax is recognised, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the balance sheet. Deferred tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Company and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.

D. Deferred tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. At each balance sheet date, unrecognised and recognised deferred tax assets are reassessed.

E. Current income tax assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. Deferred tax assets and liabilities are offset on the balance sheet when the entity has the legally enforceable right to offset current tax assets against current tax liabilities and they are levied by the same taxation authority on either the same entity or different entities that intend to settle on a net basis or realise the asset and settle the liability simultaneously.

(24) Share capital

A. Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or stock options are shown in equity as a deduction, net of tax, from the proceeds.

B. Where the Company repurchases the Company's equity share capital that has been issued, the consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the Company's equity holders.

(25) Dividends

Dividends are recorded in the Company's financial statements in the period in which they are resolved by the Company's shareholders. Cash dividends are recorded as liabilities; stock dividends are recorded as stock dividends to be distributed and are reclassified to ordinary shares on the effective date of new shares issuance.

(26) Revenue recognition

A. Sales of cement

The Company manufactures and sells limestone chemicals, cement and limestone related products. Sales are recognized when control of the products has transferred to customers, the consideration is taking into account of business tax, returns, rebates and discounts. The delivery of goods is completed when the significant risks and rewards of ownership have been transferred to the customer, the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold, and the customer has accepted the goods based on the sales contract or there is objective evidence showing that all acceptance provisions have been satisfied.

~24~

B. Recycle process revenue

The Company provides waste treatment services. Revenue from providing services is recognised in the accounting period in which the services are rendered. Revenue from fixed price contract were determined by multiplying the amount of waste which had been actually processed as of the balance sheet date by unit price of contract. The customer pays at the time specified in the payment schedule. If the services rendered exceed the payment, a contract asset is recognised. If the payments exceed the services rendered, a contract liability is recognised.

C. Rental revenue

The Company follows the guidance of IFRS 16 'Leases' to recognise revenue from the leasing of property. Leases are required to be classified as either finance lease or operating lease according to the extent of transition of risks and rewards of ownership. Revenue is recognised through the period of leases.

Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty

The preparation of these financial statements requires management to make critical judgements in applying the Company accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. Such assumptions and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year; and the related information is addressed below:

(1) Critical judgements in applying the Company's accounting policies None.
(2) Critical accounting estimates and assumptions None.

Details of Significant Accounts

(1) Cash and cash equivalents

	December 31, 2025	December 31, 2024
Cash on hand and petty cash	$ 660	$ 713
Checking accounts	116,607	83,762
Demand deposits	771,309	611,552
Time deposits	866,405	1,104,208
	1,754,981	1,800,235
Less: Time deposits pledged	( 216,431)	( 216,387)
	$ 1,538,550	$ 1,583,848

A. The Company transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.
B. Details of the Company's certain time deposits pledged, shown as 'non-current financial assets at amortised cost' related to guarantee for mining land, are provided in Note 8.

(2) Financial assets at fair value through profit or loss

Items	December 31, 2025	December 31, 2024
Current items:
Financial assets mandatorily measured at fair value through profit or loss
Domestic listed stocks	$ 38,916	$ 38,916
Foreign listed stocks	2,549	2,549
	41,465	41,465
Valuation adjustment	( 16,622)	( 16,056)
	$ 24,843	$ 25,409
Non-current items:
Financial assets mandatorily measured at fair value through profit or loss
Domestic emerging stocks	$ 10,371	$ -
Domestic unlisted stocks	52,792	63,688
	63,163	63,688
Valuation adjustment	158,367	140,389
	$ 221,530	$ 204,077

A. Amounts recognised in profit or loss in relation to financial assets at fair value through profit or loss are listed below:

	Year ended December 31
	2025	2024
Financial assets mandatorily measured at fair value through profit or loss
Equity instruments	$ 22,916	($ 37,624)

B. Information relating to credit risk of financial assets at fair value through profit or loss is provided in Note 12(2).

(3) Financial assets at amortised cost

Items	December 31, 2025	December 31, 2024
Non-current items :
Financial bonds	$ 39,798	$ 19,587
Corporate bonds	29,147	28,875
Time deposits pledged	216,431	216,387
	$ 285,376	$ 264,849

A. Amounts recognised in profit or loss in relation to financial assets at amortised cost are listed below:

	Year ended December 31
	2025	2024
Interest income	$ 3,956	$ 2,890

B. As at December 31, 2025 and 2024, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at amortised cost held by the Company was $285,376 and $264,849, respectively.
C. Details of the Company's financial assets at amortised cost pledged to others as collateral are provided in Note 8.
D. Information relating to credit risk of financial assets at amortised cost is provided in Note 12(2). The counterparties of the Company's investments in certificates of deposit are financial institutions with high credit quality, so the Group expects that the probability of counterparty default is remote.

(4) Notes and accounts receivable

	December 31, 2025	December 31, 2024
Notes receivable	$ 98,220	$ 61,302
Notes receivable due from related parties	23,007	26,046
Less: Allowance for uncollectible accounts	( 29)	( 18)
	$ 121,198	$ 87,330
	December 31, 2025	December 31, 2024
Accounts receivable	$ 67,671	$ 29,381
Less: Allowance for uncollectible accounts	( 20)	( 9)
	$ 67,651	$ 29,372

A. The ageing analysis of notes and accounts receivable that were past due but not impaired is as follows:

	December 31, 2025		December 31, 2024
	Notes receivable	Accounts receivable	Notes receivable	Accounts receivable
Not past due	$ 121,227	$ 67,671	$ 87,348	$ 29,381

The above ageing analysis was based on past due date.

B. As of December 31, 2025 and 2024, notes and accounts receivable were all from contracts with customers. And as of January 1, 2024, the balance of receivables from contracts with customers amounted to $163,579 and $63,519, respectively.
C. As of December 31, 2025 and 2024, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Company's notes and accounts receivable was $121,198 and $87,330; $67,651 and $29,372, respectively.
D. Information relating to credit risk of financial assets at amortised cost is provided in Note 12(2).

(5) Inventories

	December 31, 2025
	Cost	Allowance for valuation loss	Book value
Raw materials	$ 143,560	$ -	$ 143,560
Supplies	207,675	( 2,396)	205,279
Work in progress	7,154	-	7,154
Finished goods	78,302	-	78,302
	$ 436,691	($ 2,396)	$ 434,295
	December 31, 2024
	Cost	Allowance for valuation loss	Book value
Raw materials	$ 251,217	$ -	$ 251,217
Supplies	215,819	( 1,732)	214,087
Work in progress	16,137	-	16,137
Finished goods	27,839	-	27,839
	$ 511,012	($ 1,732)	$ 509,280

The cost of inventories recognised as expense for the year:

	Year ended December 31
	2025	2024
Cost of goods sold	$ 1,377,036	$ 1,342,546
Underapplied overheads	34,088	50,913
Loss on decline in market value	664	1,180
	$ 1,411,788	$ 1,394,639

(6) Investments accounted for using equity method

	2025	2024
At January 1	$ 3,612,702	$ 3,572,586
Share of profit or loss of investments accounted for using equity method	70,063	90,277
Earnings distribution of investments accounted for using equity method	( 50,344)	( 157,509)
Changes in other equity items (Note 6(16))	16,199	107,046
Others	281	302
At December 31	$ 3,648,901	$ 3,612,702
	December 31, 2025	December 31, 2024
Subsidiaries:
Hsin I Ready Mixed Concrete Co., Ltd.	$ 395,055	$ 380,272
Synergy Development Co., Ltd.	66,136	65,379
Soaring Power Corp.	3,187,710	3,167,051
	$ 3,648,901	$ 3,612,702

~29~

Subsidiaries

Please refer to Note 4(3) in the 2025 consolidated financial statements for the information regarding the Company's subsidiaries.

(7) Property, plant and equipment

	2025
	Land	Buildings and structures	Machinery and equipment	Transportation equipment	Office equipment	Other equipment	Unfinished construction	Total
	Owner-occupied	Owner-occupied	Owner-occupied	Owner-occupied	Owner-occupied	Owner-occupied
At January 1
Cost	$ 400,645	$ 749,361	$ 3,648,826	$ 88,461	$ 8,769	$ 129,373	$ 72,264	$ 5,097,699
Accumulated depreciation and impairment	-	( 678,622)	( 3,451,866)	( 75,361)	( 4,408)	( 94,755)	-	( 4,305,012)
	$ 400,645	$ 70,739	$ 196,960	$ 13,100	$ 4,361	$ 34,618	$ 72,264	$ 792,687
Opening net book amount as at January 1	$ 400,645	$ 70,739	$ 196,960	$ 13,100	$ 4,361	$ 34,618	$ 72,264	$ 792,687
Additions	-	6,961	140,147	736	2,476	164	1,600	152,084
Disposals	-	-	( 10,030)	-	-	-	-	( 10,030)
Reclassification	-	817	68,812	-	-	-	( 69,629)
Depreciation charge	-	( 9,313)	( 58,299)	( 2,717)	( 968)	( 3,791)	-	( 75,088)
Closing net book amount as at December 31	$ 400,645	$ 69,204	$ 337,590	$ 11,119	$ 5,869	$ 30,991	$ 4,235	$ 859,653
At December 31
Cost	$ 400,645	$ 757,145	$ 3,844,270	$ 89,197	$ 11,049	$ 129,537	$ 4,235	$ 5,236,078
Accumulated depreciation and impairment	-	( 687,941)	( 3,506,680)	( 78,078)	( 5,180)	( 98,546)	-	( 4,376,425)
	$ 400,645	$ 69,204	$ 337,590	$ 11,119	$ 5,869	$ 30,991	$ 4,235	$ 859,653

	2024
	Land	Buildings and structures	Machinery and equipment	Transportation equipment	Office equipment	Other equipment	Unfinished construction	Total
	Owner-occupied	Owner-occupied	Owner-occupied	Owner-occupied	Owner-occupied	Owner-occupied
At January 1
Cost	$400,645	$746,719	$3,607,902	$83,698	$8,657	$127,259	$4,821	$4,979,701
Accumulated depreciation and impairment	-	(668,632)	(3,400,871)	(73,181)	(3,460)	(90,924)	-	(4,237,068)
	$400,645	$78,087	$207,031	$10,517	$5,197	$36,335	$4,821	$742,633
Opening net book amount as at January 1	$400,645	$78,087	$207,031	$10,517	$5,197	$36,335	$4,821	$742,633
Additions	-	2,642	44,991	5,183	112	2,114	69,252	124,294
Disposals	-	-	(5,308)	(32)	-	-	-	(5,340)
Reclassification	-	-	1,809	-	-	-	(1,809)	-
Depreciation charge	-	(9,990)	(51,563)	(2,568)	(948)	(3,831)	-	(68,900)
Closing net book amount as at December 31	$400,645	$70,739	$196,960	$13,100	$4,361	$34,618	$72,264	$792,687
At December 31
Cost	$400,645	$749,361	$3,648,826	$88,461	$8,769	$129,373	$72,264	$5,097,699
Accumulated depreciation and impairment	-	(678,622)	(3,451,866)	(75,361)	(4,408)	(94,755)	-	(4,305,012)
	$400,645	$70,739	$196,960	$13,100	$4,361	$34,618	$72,264	$792,687
A. The significant components of buildings and structures include office, inventory warehouse as well as firefighting and air conditioning equipment, which are depreciated over 30 to 60, 30 to 45 and 8 years, respectively.
B. As the land with book value of $65,142 in Wulaokeng Sec., Su’ao Township is a farmland, therefore, the title to the land is temporarily registered to a natural person. However, the Company has set the pledge of land ownership to itself in order to protect its rights.

(8) Leasing arrangements - lessee

A. The Company leases various assets including mining land. Rental contracts are typically made for periods of 3 to 9 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The leased assets may not be used as security for borrowing purposes nor the rights to be transferred to others through business transfer or combination.

B. The carrying amount of right-of-use assets and the depreciation charge are as follows:

| | December 31, 2025
Carrying amount | December 31, 2024
Carrying amount |
| --- | --- | --- |
| Land - mining land | $ 40,738 | $ 48,926 |
| Other equipment | 976 | 307 |
| | $ 41,714 | $ 49,233 |
| | Year ended December 31 | |
| --- | --- | --- |
| | 2025 | 2024 |
| | Depreciation charge | Depreciation charge |
| Land - mining land | $ 9,058 | $ 8,910 |
| Other equipment | 463 | 2,706 |
| | $ 9,521 | $ 11,616 |

C. For the years ended December 31, 2025 and 2024, the additions to right-of-use assets were $2,002 and $0, respectively.

D. Due to price index adjustments in 2025 and 2024, the Company's remeasurement of right-of-use assets increased by $0 and $38,356, respectively.

E. The information on profit and loss accounts relating to lease contracts is as follows:

	Year ended December 31
	2025	2024
Items affecting profit or loss
Interest expense on lease liabilities	$ 1,544	$ 1,706
Expense on short-term lease contracts	1,798	1,798
Expense on leases of low-value assets	10	10

F. For the years ended December 31, 2025 and 2024, the Company's total cash outflow for leases were $12,780 and $20,421, respectively.

G. Extension and termination options

In determining the lease term, the Company takes into consideration all facts and circumstances that create an economic incentive to exercise an extension option or not to exercise a termination option. The assessment of lease period is reviewed if a significant event occurs which affects the assessment.

~32~

(9) Leasing arrangements - lessor

A. The Company leases various assets including buildings. Rental contracts are typically made for periods of 1 and 5 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. To protect the lessor’s ownership rights on the leased assets, leased assets may not be used as security for borrowing purposes, nor be subleased, lent, sold or granted fully or partially in any different form to the third parties.

B. For the years ended December 31, 2025 and 2024, the Company recognised rent income in the amounts of $48,600 and $49,636, respectively, based on the operating lease agreement, which does not include variable lease payments.

C. The maturity analysis of the lease payments under the operating leases is as follows:

	December 31, 2025		December 31, 2024
2026	$ 49,202	2025	$ 49,394
2027	42,275	2026	48,782
2028	39,800	2027	40,771
2029	39,626	2028	38,126
After 2030	112,362	After 2029	147,383
	$ 283,265		$ 324,456

(10) Investment property

	2025
	Land	Buildings and structures	Total
At January 1
Cost	$ 1,198,883	$ 381,238	$ 1,580,121
Accumulated depreciation	-	( 162,594)	( 162,594)
	$ 1,198,883	$ 218,644	$ 1,417,527
Opening net book amount as at January 1	$ 1,198,883	$ 218,644	$ 1,417,527
Additions	-	2,130	2,130
Depreciation charge	-	( 8,591)	( 8,591)
Closing net book amount as at December 31	$ 1,198,883	$ 212,183	$ 1,411,066
At December 31
Cost	$ 1,198,883	$ 383,368	$ 1,582,251
Accumulated depreciation	-	( 171,185)	( 171,185)
	$ 1,198,883	$ 212,183	$ 1,411,066

	2024
	Land	Buildings and structures	Total
At January 1
Cost	$ 1,198,883	$ 379,476	$ 1,578,359
Accumulated depreciation	-	( 154,192)	( 154,192)
	$ 1,198,883	$ 225,284	$ 1,424,167
Opening net book amount as at January 1	$ 1,198,883	$ 225,284	$ 1,424,167
Additions	-	1,762	1,762
Depreciation charge	-	( 8,402)	( 8,402)
Closing net book amount as at December 31	$ 1,198,883	$ 218,644	$ 1,417,527
At December 31
Cost	$ 1,198,883	$ 381,238	$ 1,580,121
Accumulated depreciation	-	( 162,594)	( 162,594)
	$ 1,198,883	$ 218,644	$ 1,417,527

A. Rental income from investment property and direct operating expenses arising from investment property are shown below:

	Year ended December 31
	2025	2024
Rental income from investment property	$ 48,600	$ 49,636
Direct operating expenses arising from the investment property that generated rental income during the year	$ 19,504	$ 19,414

B. The fair value of the investment property held by the Company was $6,768,268 and $6,364,859 as of December 31, 2025 and 2024, respectively, which was based on the result that fair value is Level 2 or Level 3 of the management in reference to the appraisal report valued by independent valuers or internal valuation. The details of the valuation methods are as follows:

(a) Direct capitalisation method of income approach: The Group adjusts the factors that affect the price of the subject property through the differences due to the local factors and individual factors between the comparable properties and the subject property to obtain the reasonable rents of the subject property; and calculates the effective gross income with deduction of the related expenses, then use an appropriate capitalisation rate to obtain the income value of the subject property.

(b) The Group estimates the value of the subject property by comprehensive consideration of transaction prices from sales through agents of the neighbouring comparable properties which possess the same nature and have similar characteristics and the transaction prices of real estate from the Ministry of Interior.

C. On June 19, 2000, the Company was approved to develop certain parcels of land with book value of $673,413 in Guanxi by the Tai 89 Nei-Ying-Zi Letter No. 8983677 issued by Construction and Planning Agency Ministry of the Interior through the submitted application of ‘Integrated Development and Construction Plan of Hsing Ta Guanxi Community’. However, the titles to certain parcels of land, categorised as cultivated land, were temporarily registered to natural persons and shall be subsequently registered to the Company after the parcels of land are categorised as non-cultivated land in accordance with laws as the Company signed trust deeds with each individual natural person. The Company has set the pledge of land ownership to itself in order to protect its rights.

D. On May 25, 2020, the Company entered into a joint construction agreement with CHAINQUI CONSTRUCTION DEVELOPMENT CO., LTD. (CHAINQUI). Under the agreement, the Company provides the above-land structures and lands located in No. 602-1 and 603, 2nd Subsec., Chengzhong Sec., Zhongzheng Dist., Taipei City, and CHAINQUI provides construction fund for the building construction. On May 6, 2024, the Company obtained the construction permit. In January, 2025, the Company obtained a construction commencement permit from the Construction Management Office.

(11) Pensions

A. (a) The Company has a defined benefit pension plan in accordance with the Labor Standards Act, covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Law. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement.

The Company contributes monthly an amount equal to 15% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee.

(b) The amounts recognised in the balance sheet are as follows:

	December 31, 2025	December 31, 2024
Present value of defined benefit obligations	($ 147,986)	($ 149,764)
Fair value of plan assets	132,584	127,639
Net defined benefit liability	($ 15,402)	($ 22,125)

	2025
	Present value of defined benefit obligations	Fair value of plan assets	Net defined benefit liability
At January 1	($ 149,764)	$ 127,639	($ 22,125)
Current service cost	( 559)	-	( 559)
Interest (expense) income	( 2,396)	2,042	( 354)
	( 152,719)	129,681	( 23,038)
Remeasurements:
Return on plan assets	-	9,431	9,431
(excluding amounts included in interest income or expense)
Change in demographic assumptions	-	-	-
Change in financial assumptions	( 3,299)	-	( 3,299)
Experience adjustments	541	-	541
	( 2,758)	9,431	6,673
Pension fund contribution	-	963	963
Paid pension	7,491	( 7,491)	-
At December 31	($ 147,986)	$ 132,584	($ 15,402)
	2024
	Present value of defined benefit obligations	Fair value of plan assets	Net defined benefit liability
At January 1	($ 165,771)	$ 126,380	($ 39,391)
Current service cost	( 1,041)	-	( 1,041)
Interest (expense) income	( 1,989)	1,516	( 473)
	( 168,801)	127,896	( 40,905)
Remeasurements:
Return on plan assets	-	-	-
(excluding amounts included in interest income or expense)
Change in demographic assumptions	-	11,601	11,601
Change in financial assumptions	4,950	-	4,950
Experience adjustments	698	-	698
	5,648	11,601	17,249
Pension fund contribution	-	1,531	1,531
Paid pension	13,389	( 13,389)	-
At December 31	($ 149,764)	$ 127,639	($ 22,125)

(d) The Bank of Taiwan was commissioned to manage the Fund of the Company's and HSIN I's defined benefit pension plan in accordance with the Fund's annual investment and utilisation plan and the "Regulations for Revenues, Expenditures, Safeguard and Utilisation of the Labor Retirement Fund" (Article 6: The scope of utilisation for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-the-counter, or private placement equity securities, investment in domestic or foreign real estate securitisation products, etc.). With regard to the utilisation of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings is less than aforementioned rates, government shall make payment for the deficit after being authorised by the Regulator. The Company has no right to participate in managing and operating that fund and hence the Company is unable to disclose the classification of plan assets fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as of December 31, 2025 and 2024 is given in the Annual Labor Retirement Fund Utilisation Report announced by the government.

(e) The principal actuarial assumptions used were as follows:

	Year ended December 31
	2025	2024
Discount rate	1.30%	1.60%
Future salary increases	1.00%	1.00%

Assumptions regarding future mortality experience are set based on future mortality rate was estimated based on the 6th Taiwan Standard Ordinary Experience Mortality Table.

Sensitivity analysis of the effect on present value of defined benefit obligation due from the changes of main actuarial assumptions was as follows:

	Discount rate		Future salary increases
	Increase 0.25%	Decrease 0.25%	Increase 0.25%	Decrease 0.25%
December 31, 2025
Effect on present value of defined benefit obligation	($ 2,756)	$ 2,835	$ 2,464	($ 2,411)
December 31, 2024
Effect on present value of defined benefit obligation	($ 2,978)	$ 3,066	$ 2,700	($ 2,638)

The sensitivity analysis above is based on one assumption which changed while the other conditions remain unchanged. In practice, more than one assumption may change all at once. The method utilised in sensitivity analysis is the same as the method utilised in calculating net pension liability on the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis were consistent with the previous period.

(f) Expected contributions to the defined benefit pension plan of the Company for the year ending December 31, 2026 amount to $913.

~37~

(g) As of December 31, 2025, the weighted average duration of that retirement plan is 8 years. The analysis of timing of the future pension payment was as follows:

Within 1 year	$	8,053
1-2 year(s)		12,848
2-5 years		39,210
Over 5 years		55,447
	$	115,558

B. (a) Effective July 1, 2005, the Company has established a defined contribution pension plan (the "New Plan") under the Labor Pension Act (the "Act"), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company contributes monthly an amount based on 6% of the employees' monthly salaries and wages to the employees' individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment.

(b) The pension costs under the defined contribution pension plan of the Company for the years ended December 31, 2025 and 2024 were $8,441 and $8,464, respectively.

(12) Provisions

At January 1, 2025
Additional provisions
At December 31, 2025
Analysis of total provisions:

Current

On December 31, 2024: None.

Carbon fees

The self-determined reduction plan applied by the Company has been approved by the regulatory authorities. Therefore, provision for carbon fees was adjusted from the standard rate to the preferential rate, resulting in a change in accounting estimates.

(13) Share capital

As of December 31, 2025, the Company's authorised capital was $5,400,000, consisting of 540,000 thousand shares, and the paid-in capital was $3,411,589 with a par value of $10 (in dollars) per share. All proceeds from shares issued have been collected.

Carbon fees
$ -
9,528
$ 9,528
December 31, 2025
9,528

(14) Capital surplus

Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Act requires that the amount of capital surplus to be capitalised mentioned above should not exceed 10% of the paid-in capital each year. However, capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

(15) Retained earnings

A. Under the Company's Articles of Incorporation, the current year's earnings, if any, shall first be used to pay all taxes and offset prior years' operating losses and then 10% of the remaining amount shall be set aside as legal reserve. When setting aside special reserve or retained when necessary, the Board of Directors shall present the distribution of the remaining earnings, if any, along with prior accumulated undistributed earnings for the approval of the stockholders at the stockholders' meetings.

B. The Company's dividend policy is summarised below:

The current year's earnings, if any, shall first be used to pay all taxes and offset prior years' operating losses and then 10% of the remaining amount shall be set aside as legal reserve. If legal reserve has accumulated to an amount equal to the paid-in capital, then legal reserve is not required to be set aside any more, and the special reserve could be set aside or reversed in accordance with relevant laws and regulations where necessary. The Board of Directors should present the distribution including distribution ratios of the remaining earnings along with accumulated unappropriated retained earnings from prior periods for the approval of the shareholders. The dividends shall be distributed, in form of cash based on the distributable earnings for current year after reserving required funds to cooperate the long-term financial planning and investment or major capital budget planning, no less than 10% of dividend of the Company.

C. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company's paid-in capital.

D. (a) In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.

~39~

(b) The amounts previously set aside by the Company as special reserve on initial application of IFRSs in accordance with Order No. Financial-Supervisory-Securities-Corporate-1090150022, dated March 31, 2021, shall be reversed proportionately when the relevant assets are used, disposed of or reclassified subsequently. Such amounts are reversed upon disposal or reclassified if the assets are investment property of land, and reversed over the use period if the assets are investment property other than land.

E. The appropriations of earnings of years 2024 and 2023 as resolved by the stockholders at their meetings on June 19, 2025 and June 19, 2024, respectively, are as follows:

	Year ended December 31
	2024		2023
	Amount	Dividends per share (in dollars)	Amount	Dividends per share (in dollars)
Legal reserve	$ 48,335		$ 68,131
Special (reversal of) reserve	( 107,046)		56,671
Cash dividends	307,043	$ 0.90	409,391	$ 1.20

F. The appropriation of 2025 earnings was resolved by the Board of Directors on March 12, 2026.

	Year ended December 31, 2025
	Amount	Dividends per share (in dollars)
Legal reserve	$ 35,677
Reversal of special reserve	( 16,199)
Cash dividends	307,043	$ 0.90

The appropriation of the 2025 earnings has not been resolved by the shareholders at their meetings and the related information will be posted in the "Market Observation Post System" at the website of the Taiwan Stock Exchange.

(16) Other equity items

	2025
	Currency translation		Total
At January 1	($	86,109)	($ 86,109)
Currency translation differences:
- Subsidiary		16,199	16,199
At December 31	($	69,910)	($ 69,910)
	2024
	Currency translation		Total
At January 1	($	193,155)	($ 193,155)
Currency translation differences:
- Subsidiary		107,046	107,046
At December 31	($	86,109)	($ 86,109)
(17) Operating revenue
	Year ended December 31
	2025		2024
Revenue from contracts with customers	$	1,792,265	$ 1,954,678
Others - rental revenue		48,600	49,636
	$	1,840,865	$ 2,004,314

A. Disaggregation of revenue from contracts with customers

The Group derives revenue from the transfer of goods and services over time and at a point in time in the following major product lines and geographical regions:

	Taiwan
Year ended December 31, 2025	Cement	Revenue from recycling and treatment	Total
Revenue from external customer contracts	$ 1,710,481	$ 81,784	$ 1,792,265
Timing of revenue
At a point in time	$ 1,710,481	$ -	$ 1,710,481
Over time	-	81,784	81,784
	$ 1,710,481	$ 81,784	$ 1,792,265
Year ended December 31, 2024	Cement	Recycling and treatment	Total
Revenue from external customer contracts	$ 1,871,650	$ 83,028	$ 1,954,678
Timing of revenue
At a point in time	$ 1,871,650	$ -	$ 1,871,650
Over time	-	83,028	83,028
	$ 1,871,650	$ 83,028	$ 1,954,678

~42~

B. Contract liabilities

The Company has recognised the following revenue-related contract liabilities:

	December 31, 2025	December 31, 2024	January 1, 2024
Contract liabilities – revenue from cement sales in advance
Sales revenue	$ 81,833	$ 56,520	$ 65,014

Revenue recognised that was included in the contract liability balance at the beginning of the year.

	Year ended December 31
	2025	2024
Revenue recognised that was included in the contract liability balance at the beginning of the year
Cement sales contracts	$ 51,437	$ 62,906

(18) Interest income

	Year ended December 31
	2025	2024
Interest income from bank deposits	$ 19,220	$ 25,424
Interest income from financial assets measured at amortised cost	3,956	2,890
Other interest income	5	15
	$ 23,181	$ 28,329

(19) Other income

	Year ended December 31
	2025	2024
Dividend income	$ 11,381	$ 13,253
WRA's reimbursement income	4,366	-
Government grants income	12,000	-
Other income	6,152	10,503
	$ 33,899	$ 23,756

(20) Other gains and losses

	Year ended December 31
	2025	2024
Gain (loss) on financial assets at fair value through profit or loss	$ 22,916	($ 37,624)
Net foreign exchange (loss) gain	( 5,736)	24,355
Loss on disposals of property, plant and equipment	( 9,360)	( 4,925)
Others	( 40)	( 2)
	$ 7,780	($ 18,196)

(21) Finance costs

Year ended December 31
	2025	2024
Interest expense:
Lease liabilities	$ 1,544	$ 1,706
Others	163	78
	$ 1,707	$ 1,784
(22) Expenses by nature
Year ended December 31
	2025	2024
Employee benefit expense	$ 288,483	$ 309,259
Depreciation charges on property, plant and equipment including investment property	83,679	77,302
Depreciation charges on right-of-use assets	9,521	11,616
	$ 381,683	$ 398,177
(23) Employee benefit expense
Year ended December 31
	2025	2024
Wages and salaries	$ 216,036	$ 229,290
Labour and health insurance fees	24,480	24,461
Pension costs	9,354	9,978
Directors’ remuneration	23,487	30,144
Other personnel expenses	15,126	15,386
	$ 288,483	$ 309,259

A. In accordance with the Articles of Incorporation of the Company, a ratio of distributable profit of the current year, after covering accumulated losses, shall be distributed as employees’ compensation and directors’ remuneration. The ratio shall be 1% to 3% for employees’ compensation and shall not be higher than 5% for directors’ remuneration. The aforementioned employees’ compensation shall be distributed no lower than 50% for distributing the compensation or adjusting the salaries to the non-managerial employees.

B. For the years ended December 31, 2025 and 2024, employees’ compensation was accrued at $9,227 and $12,484, respectively; while directors’ remuneration was accrued at $18,455 and $24,967, respectively.

For the year ended December 31, 2025, the employees’ compensation and directors’ remuneration were referred to the distribution ratios in prior years and the percentage as prescribed by the Company’s Articles of Incorporation. The employees’ compensation and directors’ remuneration were estimated and accrued based on 2% and 4%, respectively, and will be distributed in the form of cash.

Employees’ compensation and directors’ and supervisors’ remuneration of 2025 as resolved by the Board of Directors were in agreement with those amounts recognised in the 2024 financial statements, amounted to $12,484 and $24,967, respectively.

Information about employees' compensation and directors' remuneration of the Company as resolved at the meeting of Board of Directors will be posted in the "Market Observation Post System" at the website of the Taiwan Stock Exchange.

(24) Income tax

A. Income tax expense

(a) Components of income tax expense:

	Year ended December 31
	2025	2024
Current tax:
Current tax on profits for the year	$ 69,203	$ 114,535
Tax on undistributed surplus earnings	9,461	5,987
Prior year income tax over estimation	(24)	(2,800)
Total current tax	78,640	117,722
Deferred tax:
Origination and reversal of temporary differences	3,883	(389)
Total deferred tax	3,883	(389)
Income tax expense	$ 82,523	$ 117,333

(b) The income tax (charge)/credit relating to components of other comprehensive income is as follows:

	Year ended December 31
	2025	2024
Remeasurement of defined benefit obligations	$ 1,335	$ 3,450

B. Reconciliation between income tax expense and accounting profit

	Year ended December 31
	2025	2024
Tax calculated based on profit before tax and statutory tax rate	$ 86,738	$ 117,346
Tax adjustment by tax regulation	(13,652)	(3,200)
Prior year income tax over estimation	(24)	(2,800)
Tax on undistributed earnings	9,461	5,987
Income tax expense	$ 82,523	$ 117,333

C. Amounts of deferred tax assets or liabilities as a result of temporary differences are as follows:

	2025
	January 1	Recognised in profit or loss	Recognised in other comprehensive income	December 31
Deferred tax assets:
Net sales revenue and expense	$14,650	$(3,890)	$-	$10,760
Unrealised gross profit from sales	65	(3)	-	62
Loss on bad debt	5	5	-	10
Loss on inventory decline	347	133	-	480
in market value
Impairment loss on investments	2,736	-	-	2,736
Net pension cost	12,900	(10)	-	12,890
Unrealised loss on financial assets at fair	136	(43)	-	93
value through profit or loss
Impairment loss on machinery	3,775	-	-	3,775
and equipment	34,614	(3,808)	-	30,806
Deferred tax liabilities:
Unrealized exchange gain	(1,329)	1,243	-	(86)
Actuarial loss on defined benefit plan	(8,475)	-	(1,335)	(9,810)
Foreign subsidiaries' investment income	(21,864)	(1,318)	-	(23,182)
	(31,668)	(75)	(1,335)	(33,078)
	$2,946	$(3,883)	$(1,335)	$(2,272)
	2024
	January 1	Recognised in profit or loss	Recognised in other comprehensive income	December 31
Deferred tax assets:
Net sales revenue and expense	$18,528	$(3,878)	$-	$14,650
Unrealised exchange loss	2,025	(2,025)	-	-
Unrealised gross profit from sales	94	(29)	-	65
Loss on inventory decline	-	5	-	5
in market value
Loss on inventory decline	110	237	-	347
in market value
Impairment loss on investments	2,736	-	-	2,736
Net pension cost	12,904	(4)	-	12,900
Unrealised loss on financial assets at fair	79	57	-	136
value through profit or loss
Impairment loss on machinery	3,775	-	-	3,775
and equipment	40,251	(5,637)	-	34,614
Deferred tax liabilities:
Unrealized exchange gain	-	(1,329)	-	(1,329)
Actuarial loss on defined benefit plan	(5,025)	-	(3,450)	(8,475)
Foreign subsidiaries' investment income	(29,219)	7,355	-	(21,864)
	(34,244)	6,026	(3,450)	(31,668)
	$6,007	$389	$(3,450)	$2,946

D. The Company’s income tax returns through 2023 have been assessed and approved by the Tax Authority.

(25) Earnings per share

	Year ended December 31, 2025
	Amount after tax	Weighted average number of ordinary shares outstanding	Earnings per share (in dollars)
Basic earnings per share
Profit attributable to ordinary shareholders of the parent	$ 351,163	341,159	$ 1.03
Diluted earnings per share
Profit attributable to ordinary shareholders of the parent	$ 351,163	341,159
Assumed conversion of all dilutive potential ordinary shares - Employees’ compensation	-	732
Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	$ 351,163	341,891	$ 1.03
	Year ended December 31, 2024
	Amount after tax	Weighted average number of ordinary shares outstanding	Earnings per share (in dollars)
Basic earnings per share
Profit attributable to ordinary shareholders of the parent	$ 469,398	341,159	$ 1.38
Diluted earnings per share
Profit attributable to ordinary shareholders of the parent	$ 469,398	341,159
Assumed conversion of all dilutive potential ordinary shares - Employees’ compensation	-	905
Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	$ 469,398	342,064	$ 1.37

(26) Supplemental cash flow information

Investing activities with partial cash payments

	Year ended December 31, 2025	Year ended December 31, 2024
Purchase of property, plant and equipment	$ 152,084	$ 124,294
Add: Ending balance of prepayment for business facilities	10,247	27,445
Less: Opening balance of prepayment for business facilities	( 27,445)	( 8,565)
Cash paid during the year	$ 134,886	$ 143,174

(27) Changes in liabilities from financing activities

	2025
	Guarantee deposits received	Lease liabilities	Liabilities from financing activities-gross
At January 1	$ 18,044	$ 61,046	$ 79,090
Changes in cash flow from financing activities	( 178)	( 9,428)	( 9,606)
Changes in other non-cash items	-	2,002	2,002
At December 31	$ 17,866	$ 53,620	$ 71,486
	2024
	Guarantee deposits received	Lease liabilities	Liabilities from financing activities-gross
At January 1	$ 17,893	$ 29,748	$ 47,641
Changes in cash flow from financing activities	151	( 16,907)	( 16,756)
Changes in other non-cash items	-	48,205	48,205
At December 31	$ 18,044	$ 61,046	$ 79,090

Related Party Transactions

(1) Names of related parties and relationship

Names of related parties	Relationship with the Company
Hsin I Ready Mixed Concrete Co., Ltd.	The subsidiary of the Company
Soaring Power Corp. (SPC)	The subsidiary of the Company
Jiangsu Xinning New Building Materials Co., Ltd. (XN)	The second-tier subsidiary of the Company
Nanjing Xinrong New Green Materials Co., Ltd.	The third-tier subsidiary of the Company
Jiangsu Xinning New Building Materials Trading CO.,Ltd	The third-tier subsidiary of the Company
Chyn Da Freight Co., Ltd.	An entity controlled by key management personnel
Yang Tang Hai Charity Foundation	An entity controlled by key management personnel
Defu Trading Co., Ltd.	Other related party
Taiwan Ooparts Co., Ltd.	Other related party
Turbo Capital Co., Ltd.	Other related party
House Eco Lohas Co., Ltd.	Other related party

(2) Significant related party transactions

A. Operating revenue

	Year ended December 31
	2025	2024
Sales of goods:
Subsidiary	$ 116,705	$ 150,888
Sales of services:
Entities controlled by key management personnel (rental services)	24	24
	$ 116,729	$ 150,912

Goods and services are sold based on the price lists in force and terms that would be available to third parties.

B. Purchases

	Year ended December 31
	2025	2024
Purchases of services:
Entities controlled by key management personnel (delivery services)	$ 2,589	$ 156
Entities controlled by key management personnel (rental services)	1,668	1,668
	$ 4,257	$ 1,824

Services are rendered by entities controlled by key management personnel on normal commercial terms and conditions.

C. Notes receivable

	December 31, 2025	December 31, 2024
Subsidiary	$ 23,007	$ 26,046

D. Advance sales receipts (contract liability-current)

	December 31, 2025	December 31, 2024
Subsidiary	$ 912	$ 243

E. Acquisition of dividend

	December 31, 2025	December 31, 2024
Subsidiary	$ 50,344	$ 157,509

F. Endorsed and guaranteed

(a) The facility and the balance of the actual drawdown amount of provision of endorsements and guarantees to subsidiaries for bank borrowings and constructions is shown below, please refer to Note 13(1)B. for details.

	December 31, 2025		December 31, 2024
	Guarantee amount	Amount drawn down	Guarantee amount	Amount drawn down
Subsidiary	$ 321,176	$ 321,176	$ 321,176	$ 321,176

(b) The balance of provision of endorsements and guarantees to subsidiaries for lease of government-owned mining land is shown below, please refer to Note 13(1)B. for details.

	December 31, 2025		December 31, 2024
	Guarantee amount	Amount drawn down	Guarantee amount	Amount drawn down
Parent company	$ 211,200	$ 211,200	$ 211,200	$ 211,200

(3) Key management compensation

	Year ended December 31
	2025	2024
Short-term employee benefits	$ 27,755	$ 34,803
Post-employment benefits	163	163
	$ 27,918	$ 34,966

Pledged Assets

The Company's assets pledged as collateral are as follows:

Pledged asset	Book value		Purpose
	December 31, 2025	December 31, 2024
Time deposits (shown as ‘non-current financial assets at amortised cost’)	$ 216,431	$ 216,387	Guarantee for mining land

~50~

9. Significant Contingent Liabilities and Unrecognised Contract Commitments

(1) Contingencies

None.

(2) Commitments

A. Capital expenditure contracted for at the balance sheet date but not yet recognised is as follows:

	December 31, 2025	December 31, 2024
Property, plant and equipment	$ 427	$ 23,975

B. The amount of unused outstanding letters of credit for the importation of raw materials of the Company for the year ending December 31, 2025 is as follows:

	Monetary Item	Foreign Currency Amount (In thousands)
Letters of credit	JPY	$ 43,400

C. On February 4, 2025, the Company submitted a land exchange application in Guanxi to the National Property Administration, MOF, which was evaluated and approved by the Assessment Committee of Property of the National Property Administration on October 28, 2025. In order to purchase the land required for the aforementioned exchange, the Company's Board of Directors at their special meeting on December 8, 2025 resolved to enter into a real estate sale and purchase agreement with two non-related parties on December 17, 2025 and January 8, 2026, respectively, and the total contract price amounted to $239,120. As of December 31, 2025, the Company had paid a contract price of $40,167 (recorded as other non-current assets), and the remaining price had been fully paid in January 2026. On February 5, 2026, the registration for the transfer of ownership was completed. The National Property Administration, MOF, had submitted the aforementioned land exchange in Guanxi by letter to the MOF for review.

Significant Disaster Loss

None.

Significant Events after the Balance Sheet Date

A. Please refer to Note 6(15) for details of the appropriation of the 2025 earnings resolved by the Board of Directors on March 12, 2026.

B. Please refer to Note 9(2)C for details.

Others

(1) Capital management

The Company's objectives when managing capital are to safeguard the Company's ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

The management reviews the Company's capital structure periodically and considers the costs and risks involved for a particular capital structure. Generally, the Company adopts a prudent risk management strategy.

(2) Financial instruments

A. Financial instruments by category

	December 31, 2025	December 31, 2024
Financial assets
Financial assets at fair value through profit or loss
Financial assets mandatorily measured at fair value through profit or loss	$ 246,373	$ 229,486
Financial assets at amortised cost
Cash and cash equivalents	$ 1,538,550	$ 1,583,848
Financial assets at amortised cost	285,376	264,849
Notes receivable	121,198	87,330
Accounts receivable	67,651	29,372
Other receivables	1,366	1,737
Guarantee deposits paid	33,865	32,497
	$ 2,048,006	$ 1,999,633
	December 31, 2025	December 31, 2024
Financial liabilities
Financial liabilities at amortised cost
Accounts payable	$ 56,186	$ 48,486
Other payables	150,151	135,404
Guarantee deposits received	17,866	18,044
	$ 224,203	$ 201,934
Lease liability	$ 53,620	$ 61,046

B. Financial risk management policies

(a) The Company’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk.

(b) Risk management is carried out by a central finance department (Company finance) under policies. Company finance identifies, evaluates and hedges financial risks in close cooperation with the Company’s operating units, as well as written policies covering specific areas and matters, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.

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C. Significant financial risks and degrees of financial risks

(a) Market risk

i. Exchange rate risk

(i). The Company’s businesses involve some non-functional currency operations. The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

	December 31, 2025
	Foreign currency amount (In thousands)	Exchange rate	Book value (NTD)
(Foreign currency: functional currency)
Financial assets
Monetary items
USD : NTD	$ 3,051	$ 31,434	$ 95,909
RMB : NTD	27,911	4,496	125,489
	December 31, 2024
	Foreign currency amount (In thousands)	Exchange rate	Book value (NTD)
(Foreign currency: functional currency)
Financial assets
Monetary items
USD : NTD	$ 3,064	32.805	$ 100,527
RMB : NTD	27,750	4.4780	124,265

(ii). The total exchange gain (loss), including realised and unrealised, arising from significant foreign exchange variation on the monetary items held by the Company for the years ended December 31, 2025 and 2024, amounted to ($5,736) and $24,355 respectively.

(iii). Analysis of foreign currency market risk arising from significant foreign exchange variation:

	Year ended December 31, 2025
	Sensitivity analysis
	Degree of variation	Effect on profit or loss	Effect on other comprehensive income
(Foreign currency: functional currency)
Financial assets
Monetary items
USD : NTD	1%	$ 959	$ -
RMB : NTD	1%	1,255	-
	Year ended December 31, 2024
	Sensitivity analysis
	Degree of variation	Effect on profit or loss	Effect on other comprehensive income
(Foreign currency: functional currency)
Financial assets
Monetary items
USD : NTD	1%	$ 1,005	$ -
RMB : NTD	1%	1,243	-

ii. Price risk

(i). The Company's equity securities, which are exposed to price risk, are the held financial assets at fair value through profit or loss. To manage its price risk arising from investments in equity securities, the Company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Company. The Company is not exposed to commodity price risk.

(ii). The Company's investments in equity securities comprise domestic listed and unlisted shares. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased by $5\%$ with all other variables held constant, post-tax profit for the years ended December 31, 2025 and 2024 would have increased/decreased by $\$12,298$ and $\$11,456$ , respectively, as a result of other comprehensive income on equity investments classified as at fair value through other comprehensive income.

(b) Credit risk

i. Credit risk refers to the risk of financial loss to the Company arising from default by the clients or counterparties of financial instruments on the contract obligations. According to the Company’s credit policy, each local entity in the Company is responsible for managing and analysing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the Board of Directors. The utilisation of credit limits is regularly monitored. Credit risk arises from cash and cash equivalents as well as deposits with banks and financial institutions, as well as credit exposures to wholesale and retail customers, including outstanding receivables.

ii. Based on the customers’ contract period, financial position and past experience, the default occurs when the contract payments are past due over 150 days.

iii. The Company adopts the following assumptions under IFRS 9 to assess whether there has been a significant increase in credit risk on that instrument since initial recognition. If the contract payments were past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.

iv. The Company classifies customers’ accounts receivable in accordance with credit rating of customer. The Company applies the simplified approach using provision matrix to estimate expected credit loss under the provision matrix basis.

v. The Company wrote-off the financial assets, which cannot be reasonably expected to be recovered, after initiating recourse procedures. However, the Company will continue executing the recourse procedures to secure their rights. The Company has written-off financial assets that are still under recourse procedures for the years ended December 31, 2025 and 2024.

vi. The Company used the forecastability of overall economic information to adjust historical and timely information to assess the default possibility of accounts receivable, contract assets and lease payments receivable. On December 31, 2025 and 2024, the provision matrix is as follows:

	Not past due		Not past due
December 31, 2025		December 31, 2024
Expected loss rate	0.00%-0.03%	Expected loss rate	0.00%-0.03%
Total book value	$ 188,898	Total book value	$ 116,729
Loss allowance	$ 49	Loss allowance	$ 27

ix. Movements in relation to the Company applying the modified approach to provide loss allowance for notes receivable, and accounts receivable are as follows:

	2025
	Notes receivable	Accounts receivable
At January 1	($ 18)	($ 9)
Provision for impairment	( 11)	( 11)
At December 31	($ 29)	($ 20)
	2024
	Notes receivable	Accounts receivable
At January 1	$ -	$ -
Provision for impairment	( 18)	( 9)
At December 31	($ 18)	($ 9)

i. Cash flow forecasting is aggregated by Company finance. Company finance monitors rolling forecasts of the Company's liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining the financial statements to meet the requirements of financial ratios, the details are provided in Note 9(2), so that the Company does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities. Such forecasting takes into consideration the Company's debt financing plans, covenant compliance and compliance with internal balance sheet ratio targets.

ii. Surplus cash held by the Company over and above balance required for working capital management, Company finance will invest surplus cash in interest bearing current accounts, time deposits, money market deposits and marketable securities, choosing instruments with appropriate maturities or sufficient liquidity to provide sufficient headroom as determined by the above-mentioned forecasts.

iii. The table below analyses the Company's non-derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for non-derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.

Non-derivative financial liabilities

	Less than 1 year	Between 1 and 2 years	Between 2 and 5 years	Over 5 years
December 31, 2025
Accounts payable	$ 56,168	$ -	$ -	$ -
Other payables	150,151	-	-	-
Lease liability	10,512	10,741	30,493	5,846
Non-derivative financial liabilities
	Less than 1 year	Between 1 and 2 years	Between 2 and 5 years	Over 5 years
December 31, 2024
Accounts payable	$ 48,486	$ -	$ -	$ -
Other payables	135,404	-	-	-
Lease liability	10,274	10,123	30,212	15,868

iv. The Company does not expect the timing of occurrence of the cash flows estimated through the maturity date analysis will be significantly earlier, nor expect the actual cash flow amount will be significantly different.

(3) Fair value information

A. The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Company's investment in listed stocks is included in Level 1.

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. The domestic unlisted stocks invested by the Company are included in Level 3.

B. Fair value information of investment property at cost is provided in Note 6(10).

C. The carrying amounts of the Company's financial instruments not measured at fair value (including cash and cash equivalents, financial assets at amortised cost, notes receivable, accounts receivable, other receivables, guarantee deposits paid, notes payable, accounts payable, other payables, and guarantee deposits received) are approximate to their fair values.

D. The related information of financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets at December 31, 2025 and 2024 are as follows:

(a) The related information of natures of the assets and liabilities is as follows:

December 31, 2025	Level 1	Level 2	Level 3	Total
Assets
Recurring fair value measurements
Financial assets at fair value through profit or loss
Equity securities	$ 24,843	$ 127,259	$ 94,271	$ 246,373
December 31, 2024	Level 1	Level 2	Level 3	Total
Assets
Recurring fair value measurements
Financial assets at fair value through profit or loss
Equity securities	$ 25,409	$ -	$ 204,077	$ 229,486

(b) The methods and assumptions the Company used to measure fair value are as follows:

i. The instruments the Company used market quoted prices as their fair values (that is, Level 1) are listed below by characteristics:

Market quoted price

Listed shares

Closing price

ii. For high-complexity financial instruments, the fair value is measured by using self-developed valuation model based on the valuation method and technique widely used within the same industry. The valuation model is normally applied to equity instruments without active market. Certain inputs used in the valuation model are not observable at market, and the Company must make reasonable estimates based on its assumptions. The effect of unobservable inputs to the valuation of financial instruments is provided in Note 12(3)I.

iii. The output of valuation model is an estimated value and the valuation technique may not be able to capture all relevant factors of the Company's financial instruments. Therefore, the estimated value derived using valuation model is adjusted accordingly with additional inputs, for example, model risk or liquidity risk and etc. In accordance with the Company's management policies and relevant control procedures relating to the valuation models used for fair value measurement, management believes adjustment to valuation is necessary in order to reasonably represent the fair value of financial instruments at the parent company only balance sheet. The inputs and pricing information used during valuation are carefully assessed and adjusted based on current market conditions.

iv. The Company takes into account adjustments for credit risks to measure the fair value of financial and non-financial instruments to reflect credit risk of the counterparty and the Company's credit quality.

E. For the years ended December 31, 2025 and 2024, there was no transfer between Level 1 and Level 2.

F. The following chart is the movement of Level 3 for the years ended December 31, 2025 and 2024:

	2025	2024
	Non-derivative equity instrument	Non-derivative equity instrument
At January 1	$ 204,077	$ 232,611
Sold in the period	( 6,029)	-
Transfers out from Level 3	( 127,259)	-
Gains(losses) recognised in profit or loss (Note)	23,482	( 28,534)
At December 31	$ 94,271	$ 204,077

Note: Recorded as non-operating income and expense.

G. Because Pershing Technology Services Corporation's shares have been traded as emerging shares from June 26, 2025, and there is sufficient observable market information available, the Group has transferred the fair value from Level 3 into Level 2 at the end of the month when the event occurred.

H. Finance segment is in charge of valuation procedures for fair value measurements being categorised within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions, confirming the resource of information is independent, reliable and in line with other resources and represented as the exercisable price, and frequently calibrating valuation model, performing back-testing, updating inputs used to the valuation model and making any other necessary adjustments to the fair value.

I. The following is the qualitative information of significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement:

	Fair value at December 31, 2025	Valuation technique	Significant unobservable input	Range	Relationship of input to fair value
Non-derivative equity instrument:
Unlisted shares	$ 71,787	Market comparable companies	Price to earnings ratio multiple	8.70~16.39	The higher the multiple, the higher the fair value
			Price to book ratio multiple	1.21~3.32	The higher the multiple, the higher the fair value
			Discount for lack of marketability	20%~40%	The higher the discount for lack of marketability, the lower the fair value
Unlisted shares	22,484	Net asset value	Net asset value	N/A	The higher the net asset value, the higher the fair value
			Discount for lack of marketability	10%	The higher the discount for lack of marketability, the lower the fair value
	Fair value at December 31, 2024	Valuation technique	Significant unobservable input	Range	Relationship of input to fair value
Non-derivative equity instrument:
Unlisted shares	$ 174,576	Market comparable companies	Price to earnings ratio multiple	8.59~24.1	The higher the multiple, the higher the fair value
			Price to book ratio multiple	1.33~3.19	The higher the multiple, the higher the fair value
			Discount for lack of marketability	20%~40%	The higher the discount for lack of marketability, the lower the fair value
Unlisted shares	29,501	Net asset value	Net asset value	N/A	The higher the net asset value, the higher the fair value
			Discount for lack of marketability	10%	The higher the discount for lack of marketability, the lower the fair value

J. The Company has carefully assessed the valuation models and assumptions used to measure fair value. However, use of different valuation models or assumptions may result in different measurement. The following is the effect of profit or loss or of other comprehensive income from financial assets categorized within Level 3 if the inputs used to valuation models have changed:

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			December 31, 2025
			Recognised in profit or loss		Recognised in other comprehensive income
	Input	Change	Favourable Change	Unfavourable Change	Favourable Change	Unfavourable Change
Financial assets
Equity instrument	Price to earnings ratio multiple, price to book ratio multiple, discount for lack of marketability and net asset value	±1%	$ 943	($ 943)	$ -	$ -
			December 31, 2024
			Recognised in profit or loss		Recognised in other comprehensive income
	Input	Change	Favourable Change	Unfavourable Change	Favourable Change	Unfavourable Change
Financial assets
Equity instrument	Price to earnings ratio multiple, price to book ratio multiple, discount for lack of marketability and net asset value	±1%	$ 2,041	($ 2,041)	$ -	$ -

(4) Other

Based on the environmental impact statement review of 2003, the Company committed to suspending the development of its third quarry in the second mine for 20 years. This suspension of development expired in 2024, and the Company submitted a development review to the relevant authorities. However, the Ministry of Environment and the Ministry of Agriculture resolved to withdraw the review on April 24, 2024.

On December 10, 2024, the Company consulted and obtained consent for development from the indigenous peoples or tribes in accordance with Article 21 of the Indigenous Peoples Basic Law. In addition, on February 6, 2025, the Company completed the verification with the Council of Indigenous Peoples as required by paragraph 2, Article 50 of the Mining Act. This case is an existing approved mining land that has passed the environmental impact assessment. The Company will continue to submit reviews in accordance with the Mining Act and the Environmental Impact Assessment Act. The application for the development permit of the third quarry in the second mine currently does not impact the Company's operations.

Supplementary Disclosures

(1) Significant transactions information

A. Loans to others: None.
B. Provision of endorsements and guarantees to others: Please refer to table 1.
C. Holding of significant marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to table 2.
D. Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid-in capital or more: Refer to table 3.
E. Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more: Refer to table 3.
F. Significant inter-company transactions during the reporting periods: Please refer to table 3.

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Please refer to table 4.

(3) Information on investments in Mainland China

A. Basic information: Please refer to table 5.

B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: Please refer to table 5.

Segment Information

Not applicable.

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HSING TA CEMENT CO., LTD.

STATEMENT OF CASH AND CASH EQUIVALENTS

DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Item	Description				Amount
Cash on hand	Headquarters				$ 20
Petty cash	South Shenghu factory and all places of business				640
Cash in banks
Checking accounts					116,607
NTD demand deposits					671,858
NTD time deposits					522,500
Foreign currency demand deposits (Note)	USD	3,051,113.20	Exchange rate	31.434	95,909
	SGD	19,410.25	Exchange rate	24.426	474
	EUR	0.06	Exchange rate	36.876	-
	JPY	12,803,269.00	Exchange rate	0.0201	2,568
	CNY	111,351.08	Exchange rate	4.496	500
Foreign currency time deposits (Note)	Interest rate: 0.65%~1.58%
	SGD	101,744.52	Exchange rate	24.526	2,485
	CNY	27,800,000	Exchange rate	4.4960	124,989
					$ 1,538,550

Note: Foreign demand and time deposits are expressed in dollars.

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HSING TA CEMENT CO., LTD.

STATEMENT OF FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME - CURRENT

DECEMBER 31, 2025
(Expressed in thousands of New Taiwan dollars)

Name of Financial Instrument	Description	Shares (in thousands)	Face Value (in dollars)	Total Amount	Cost	Fair Value
						Unit Price Net Value (in dollars)	Total Amount
China Steel Corporation	Domestic shares	1,198	$ 10	$ 11,980	$ 38,916	$ 19.00	$ 22,762
Hotung Investment Holdings Limited	Foreign shares	60	22.3	1,338	2,549	34.69	2,081
					$ 41,465		$ 24,843

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HSING TA CEMENT CO., LTD.

STATEMENT OF NOTES RECEIVABLE

DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Client Name	Amount	Note
Non-related parties:
A Corporation	$ 32,837
B Corporation	19,042
C Corporation	10,015
D Corporation	5,443
Others	30,883	None of the balance of each remaining amount is greater than 5% of this account balance
Less: Allowance for uncollectible accounts	( 29)
	98,191
Related parties:
Hsin I Ready Mixed Concrete Co., Ltd.	23,007
Net amount	$ 121,198

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HSING TA CEMENT CO., LTD.

STATEMENT OF ACCOUNTS RECEIVABLE

DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Client Name	Amount	Note
Non-related parties:
E Corporation	$ 22,546
A Corporation	22,214
F Corporation	3,719
Others		None of the balance of each remaining amount is greater than 5% of this account balance
	19,192
	$ 67,671
Less: Allowance for uncollectible accounts	( 20)
Net amount	$ 67,651

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HSING TA CEMENT CO., LTD.

STATEMENT OF INVENTORIES

DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Item	Amount
	Cost	Net Realizable Value
Raw materials	$ 143,560	$ 143,560
Supplies	207,675	205,279
Work in progress	7,154	11,784
Finished goods	78,302	113,393
	436,691	$ 474,016
Less: Allowance for loss on inventory decline in market value	( 2,396)
Net amount	$ 434,295

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HSING TA CEMENT CO., LTD.

STATEMENT OF CHANGES IN FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS - NON-CURRENT

FOR THE YEAR ENDED DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Name of Financial Instrument	Beginning Balance		Addition		Decrease (Note)		Ending Balance		Collateral
	Shares(in thousands)	Fair Value	Shares(in thousands)	Amount	Shares(in thousands)	Amount	Shares(in thousands)	Fair Value
Chin Ta Construction Co., Ltd.	5,200	$ 25,927	-	$ -	-	($ 6,833)	5,200	$ 19,094	None
Taiwan Ooparts Co., Ltd.	538	3,574	-	-	-	( 184)	538	3,390	"
Taian Insurance Co., Ltd.	365	10,887	-	-	-	( 621)	365	10,266	"
Pershing Technology Services Co., Ltd.	2,782	104,826	-	28,462	( 134)	( 6,029)	2,648	127,259	"
Fujitec Taiwan Co., Ltd.	70	8,897	-	5,431	-	-	70	14,328	"
Da Chiang International Co., Ltd.	3,448	49,966	-	-	-	( 2,773)	3,448	47,193	"
Power Digital Card Co., Ltd.	796	-	-	-	-	-	796	-	"
Amcom Communications, Inc.(Preferred Stock B)	520	-	-	-	-	-	520	-	"
Amcom Communications, Inc.(Preferred Stock C)	189	-	-	-	-	-	189	-	"
		$ 204,077		$ 33,893		($ 16,440)		$ 221,530

Note 1: It refers to proceeds from increase of book value of financial assets measured at fair value.
Note 2: It refers to proceeds from capital reduction of investees and decrease of book value of financial assets measured at fair value.
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HSING TA CEMENT CO., LTD.

STATEMENT OF CHANGES IN LONG-TERM EQUITY INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD

FOR THE YEAR ENDED DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Name of Financial Instrument	Beginning Balance		Addition		Decrease		Ending Balance		Amount	Unit Price (in dollars)	Total Amount	Collateral
	Shares (in thousands)	Fair Value	Shares (in thousands)	Amount	Shares (in thousands)	Amount	Shares (in thousands)	Percentage of Ownership
Hsin I Ready Mixed Concrete Co., Ltd.	6,072	$ 380,272	-	$ 15,094	-	($ 311)	6,072	55.20%	$ 395,055	$ -	$ 395,055	None
Synergy Development Co., Ltd.	5,880	65,379	-	757	-	-	5,880	98.00%	66,136	-	66,136	"
Soaring Power Corp.	46,587	3,167,051	-	71,003	-	( 50,344)	46,587	66.67%	3,187,710	-	3,187,710	"
		$ 3,612,702		$ 86,854		($ 50,655)			$ 3,648,901		$ 3,648,901

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~68~

HSING TA CEMENT CO., LTD.

STATEMENT OF ACCOUNTS PAYABLE

DECEMBER 31, 2025
(Expressed in thousands of New Taiwan dollars)

Client Name	Description	Amount	Note
Non-related parties:
G Corporation		$ 6,944
H Corporation		2,732
I Corporation		2,587
J Corporation		2,524
K Corporation		2,500
L Corporation		2,370
M Corporation		2,217
			None of the balance of each remaining amount is greater than 5% of this account balance
Others		21,485
		43,359
Estimated payable for material purchase	It refers to estimated other raw materials and supplies	12,809
		$ 56,168

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~69~

HSING TA CEMENT CO., LTD.

STATEMENT OF OPERATING REVENUE

FOR THE YEAR ENDED DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Item	Volume	Amount
Cement and clinker	583,474 tons	$ 1,711,249
Rental revenue		48,600
Other operating revenue		81,784
Less: Sales discounts and allowances		( 768)
Net amount		$ 1,840,865

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~70~

HSING TA CEMENT CO., LTD.

STATEMENT OF OPERATING COSTS

FOR THE YEAR ENDED DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Item	Amount
	Subtotal	Total
Raw materials used		$ 409,882
Beginning raw materials	$ 251,217
Add: Raw materials purchased	316,073
Less: Ending raw materials	( 143,560)
Less: Transferred out of limestone and clay	( 13,848)
Indirect materials		111,638
Beginning indirect materials	215,819
Add: Indirect materials purchased	115,198
Less: Transferred out	( 11,704)
Less: Ending indirect materials	( 207,675)
Direct labor		102,693
Manufacturing expense		594,681
Manufacturing cost		1,218,894
Add: Beginning work in progress		16,137
Less: Ending work in progress		( 7,154)
Cost of finished goods		1,227,877
Add: Beginning finished goods		27,839
Less: Ending finished goods		( 78,302)
Add: Commodity tax		101,747
Add: Cost of limestone sales		13,848
Add: Cement purchased		74,499
Add: Cost of carbon fees		9,528
Add: Underapplied overhead		34,088
Add: Loss on inventory decline in market value		664
Cost of sales		1,411,788
Cost of rental sales		19,504
Other operating costs		11,372
		$ 1,442,664

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~71~

HSING TA CEMENT CO., LTD.

STATEMENT OF SELLING EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Item	Description	Amount
Freight		$ 21,199
Wages and salaries		9,679
Other expenses	Insurance expense, entertainment expense and vehicles operating expense, etc.	4,359
		$ 35,237

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~72~

HSING TA CEMENT CO., LTD.

STATEMENT OF ADMINISTRATIVE EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Item	Description	Amount
Wages and salaries		$ 35,060
Other expenses	Rent expense, insurance expense and service expense, etc.	27,422
		$ 62,482

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~73~

HSING TA CEMENT CO., LTD.

SUMMARY STATEMENT OF CURRENT PERIOD EMPLOYEE BENEFITS, DEPRECIATION, DEPLETION AND AMORTIZATION EXPENSES BY FUNCTION

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

	Year ended December 31, 2025			Year ended December 31, 2024
	Classified as Operating Costs	Classified as Operating Expenses	Total	Classified as Operating Costs	Classified as Operating Expenses	Total
Employee Benefit Expense
Wages and salaries	$ 195,858	$ 20,178	$ 216,036	$ 199,489	$ 29,801	$ 229,290
Labour and health insurance fees	21,190	3,290	24,480	20,826	3,635	24,461
Pension costs	8,280	1,074	9,354	8,741	1,237	9,978
Directors' remuneration	-	23,487	23,487	-	30,144	30,144
Other personnel expenses	13,096	2,030	15,126	13,349	2,037	15,386
	$ 238,424	$ 50,059	$ 288,483	$ 242,405	$ 66,854	$ 309,259
Depreciation Expense	$ 91,495	$ 1,705	$ 93,200	$ 84,988	$ 3,930	$ 88,918
Amortisation Expense	$ -	$ -	$ -	$ -	$ -	$ -

Note:

As at December 31, 2025 and 2024, the Company had 348 and 347 employees, including 8 and 8 non-employee directors, respectively.
A company whose stock is listed for trading on the stock exchange or over-the-counter securities exchange shall additionally disclose the following information :

(1) Average employee benefit expense in current year was $779 ('total employee benefit expense in current year – total directors' remuneration in current year' / 'the number of employees in current year – the number of non-employee directors in current year').
Average employee benefit expense in previous year was $823 ('total employee benefit expense in previous year – total directors' remuneration in previous year' / 'the number of employees in previous year – the number of non-employee directors in previous year')

(2) Average employees salaries in current year was $635 (total salaries and wages in current year / 'the number of employees in current year - the number of non-employee directors in current year').
Average employees salaries in previous year was $676 (total salaries and wages in previous year / 'the number of employees in previous year - the number of non-employee directors in previous year').

~74~

HSING TA CEMENT CO., LTD.

SUMMARY STATEMENT OF CURRENT PERIOD EMPLOYEE BENEFITS, DEPRECIATION, DEPLETION AND AMORTIZATION EXPENSES BY FUNCTION (Cont.)
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)

(3) Adjustments of average employees salaries was (6.07%) ('the average employee salaries and wages in current year - the average employee salaries and wages in previous year' / the average employee salaries and wages in previous year)
(4) The Company has no supervisors, therefore it has no supervisors' remuneration for the years ended December 31, 2025 and 2024.
(5) Salary policy for employees, managers, directors, independent directors.

The directors, managers, and employees' emoluments are distributed in accordance with the Articles of Incorporation of the Company, the Remuneration Committee Charter and Personnel Regulations.

A. The principle of directors' emoluments

The directors' emoluments policy is set in the Articles of Incorporation and approved by the Board of Directors. The Board of Directors was authorised to determine the directors' emoluments in accordance with the general pay levels of the industry.

The directors' transportation allowance is determined by the Board of Directors. The directors' remuneration is distributed in accordance with the Articles of Incorporation, if the Company has distributable profit for the year.

B. President/Vice president

The emoluments of the president and vice president consists of salary, bonus and employees' compensation. This emoluments policy is to offer appropriate emoluments based on their education and work experience by reference to the general pay levels of the industry, the assessment of responsibility and role of the position, target achievement and degree of contribution and the result of operation performance to recognise the responsibilities and risks they assumed.

C. Employees

Except for considering the general pay levels of the industry, the performance assessment as well as the content and amount of individual salary and compensation of the Company's employees are determined based on the assessment results according to the performance assessment standard, personal performance, the Company's operating performance and future risks.

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Hsing Ta Cement Co., Ltd.

Provision of endorsements and guarantees to others

Year ended December 31, 2025

Table 1
Expressed in thousands of NTD
(Except as otherwise indicated)

Number (Note 1)	Endorser/ guarantor	Party being endorsed/guaranteed		Limit on endorsements/ guarantees provided for a single party (Note 3)	Maximum outstanding endorsement/ guarantee amount as of December 31, 2025 (Note 4)	Outstanding endorsement/ guarantee amount at December 31, 2025 (Note 5)	Actual amount drawn down (Note 6)	Amount of endorsements/ guarantees secured with collateral	Ratio of accumulated endorsement/ guarantee amount to net asset value of the endorser/ guarantor company(%)	Ceiling on total amount of guarantees provided (Note 3)	Provision of endorsements/ guarantees by parent company to subsidiary (Note 7)	Provision of endorsements/ guarantees by subsidiary to parent company (Note 7)	Provision of endorsements/ guarantees to the party in Mainland China (Note 7)
		Company name	Relationship with the endorser/ guarantor
0	Hsing Ta Cement Co., Ltd.	HSIN I READY MIXED CONCRETE	(2)	$ 4,182,440	$ 321,176	$ 321,176	$ 321,176	-	3.84	$ 8,364,879	Y	N	N
1	Hsin I Ready Mixed Concrete Co., Ltd.	Hsing Ta Cement Co., Ltd.	(3)	572,995	211,200	211,200	211,200	-	29.49	716,244	N	Y	N

Note 1: The numbers filled in for the endorsements/guarantees provided by the Company or subsidiaries are as follows:
(1) The Company is '0'.
(2) The subsidiaries are numbered in order starting from '1'.
Note 2: Relationship between the endorser/guarantor and the party being endorsed/guaranteed is classified into the following seven categories; fill in the number of category each case belongs to:
(1) Having business relationship.
(2) The endorser/guarantor parent company owns directly and indirectly more than 50% voting shares of the endorsed/guaranteed subsidiary.
(3) The endorsed/guaranteed company owns directly and indirectly more than 50% voting shares of the endorser/guarantor parent company.
(4) The endorser/guarantor parent company owns directly and indirectly more than 90% voting shares of the endorsed/guaranteed company.
(5) Mutual guarantee of the trade made by the endorsed/guaranteed company or joint contractor as required under the construction contract.
(6) Due to joint venture, all shareholders provide endorsements/guarantees to the endorsed/guaranteed company in proportion to its ownership.
(7) Joint guarantee of the performance guarantee for pre-sold home sales contract as required under the Consumer Protection Act.
Note 3: Fill in limit on endorsements/guarantees provided for a single party and ceiling on total amount of endorsements/guarantees provided as prescribed in the endorser/guarantor company's "Procedures for Provision of Endorsements and
Guarantees", and state each individual party to which the endorsements/guarantees have been provided and the calculation for ceiling on total amount of endorsements/guarantees provided in the footnote.
Under the Company's "Procedures for Provision of Endorsements and Guarantees", the Company's total guarantees and endorsements to others should not exceed the Company's net asset value based on the latest financial statements, and total guarantees and endorsements provided for a single party should not exceed 50% of the Company's net asset value based on the latest financial statements. The calculation is shown below:
(1) $8,364,879 × 50% = $4,182,440.
(2) $8,364,879 × 100% = $8,364,879.
Under the subsidiary, HSIN I READY MIXED CONCRETE CO., LTD.'s "Procedures for Provision of Endorsements and Guarantees", this company's total guarantees and endorsements to others should not exceed its net asset value based on the latest financial statements, and total guarantees and endorsements provided for a single party should not exceed 80% of its net asset value based on the latest financial statements. The calculation is shown below:
(3) $716,244 × 80% = $572,995.
(4) $716,244 × 100% = $716,244.
Note 4: Fill in the year-to-date maximum outstanding balance of endorsements/guarantees provided as of the reporting period.
Note 5: Fill in the amount approved by the Board of Directors or the chairman if the chairman has been authorised by the Board of Directors based on subparagraph 8, Article 12 of the Regulations Governing
Louning of Funds and Making of Endorsements/Guarantees by Public Companies.
Note 6: Fill in the actual amount of endorsements/guarantees used by the endorsed/guaranteed company.
Note 7: Fill in 'Y' for those cases of provision of endorsements/guarantees by listed parent company to subsidiary and provision by subsidiary to listed parent company, and provision to the party in Mainland China.

Hsing Ta Cement Co., Ltd.

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures)

December 31, 2025

Table 2
Expressed in thousands of NTD
(Except as otherwise indicated)

Securities held by	Marketable securities (Note 1)	General ledger account	As of December 31, 2025
			Number of shares or units (in thousands)	Book value (Note 3)	Ownership (%)	Fair value
Hsing Ta Cement Co., Ltd.	China Steel Corporation	Current financial assets at fair value through profit or loss	1,198	$ 22,762		$ 22,762
	Hotung Investment Holdings Limited	*	60	2,081		2,081
	SPD Bank Structured Deposit	*	-	224,800		224,800
Jiangsu Xinning New Building Materials Co., Ltd.	Bank of China Structured Deposit	*	-	50,355		50,355
	SPD Bank Certificates Of	*	-	225,418		225,418
	China Merchants Bank	*	-	224,800		224,800
	Certificates Of Deposit
	Bank of Jiangsu Co., ltd.	*	-	135,085		135,085
	Certificates Of Deposit
	Agricultural Bank of China	*	-	44,960		44,960
	Certificates Of Deposit
	Bank of China Certificates Of Deposit	*	-	44,960		44,960
			$ 975,221		$ 975,221

Table 2, Page 1

Securities held by	Marketable securities (Note 1)	Relationship with the securities issuer (Note 2)	General ledger account	As of December 31, 2025
				Number of shares or units (in thousands)	Book value (Note 3)	Ownership (%)	Fair value
Hsing Ta Cement Co., Ltd.	Chin Ta Construction Co., Ltd.		Non-current financial assets at fair value through profit or	5,200	$ 19,094	19.90	$ 19,094
	Taiwan Ooparts Co., Ltd.	Other related party	"	538	3,390	18.68	$ 3,390
	Taian Insurance Co ,ltd		"	365	10,266	0.12	10,266
	Pershing Technology Services Corporation		"	2,648	127,259	8.35	127,259
	Fujitec Taiwan Co., Ltd.		"	70	14,328	2.33	14,328
	Da Chiang International Co., Ltd.		"	3,448	47,193	1.72	47,193
	Power Digital Card Co., Ltd.		"	796	-	1.70	-
	Amcom Communications,inc. (Preferred Stock B)		"	520	-	11.15	-
	Amcom Communications,inc. (Preferred Stock C)		"	189	-	9.70	-
					$ 221,530		$ 221,530
	First Bank 1st Issue Of Senior Unsecured Financial Debentures in 2021.		Non-current financial assets measured at amortized cost	-	$ 19,798	-	$ 19,798
	1st Senior Unsecured Financial Debenture of E.SUN Bank in 2025-Tranche A		"	-	20,000	-	20,000
	TSMC 1st Unsecured Corporate Bond in 2022-Tranche B		"	-	29,147	-	29,147
					$ 68,945		$ 68,945

Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities within the scope of IFRS9 'Financial instruments'.
Note 2: Leave the column blank if the issuer of marketable securities is non-related party.
Note 3: Fill in the amount after adjusted at fair value and deducted by accumulated impairment for the marketable securities measured at fair value; fill in the acquisition cost or amortised cost deducted by accumulated impairment for the marketable securities not measured at fair value.
Note 4: The number of shares of securities and their amounts pledged as security or pledged for loans and their restrictions on use under some agreements should be stated in the footnote if the securities presented herein have such conditions.

Hsing Ta Cement Co., Ltd.

Significant inter-company transactions during the reporting periods

Year ended December 31, 2025

Table 3
Expressed in thousands of NTD
(Except as otherwise indicated)

Number (Note 1)	Company name	Counterparty	Relationship (Note 2)	Transaction
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note 3)
0	Hsing Ta Cement Co., Ltd.	HSIN I READY MIXED CONCRETE CO., LTD.	1	Sales revenue	$ 116,705	Note 4	2.63
1	Jiangsu Xinning New Building Materials Co., Ltd.	Jiangsu Xinning New Building Materials Trading Co., Ltd.	3	Sales revenue	2,058,949	Note 4	46.46
1	Jiangsu Xinning New Building Materials Co., Ltd.	Jiangsu Xinning New Building Materials Trading Co., Ltd.	3	Notes receivable	434,450	Note 4	3.80
1	Jiangsu Xinning New Building Materials Co., Ltd.	Jiangsu Xinning New Building Materials Trading Co., Ltd.	3	Accounts receivable	230,555	Note 4	2.02

Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:
(1)Parent company is '0'.
(2)The subsidiaries are numbered in order starting from '1'.
Note 2: Relationship between transaction company and counterparty is classified into the following three categories; fill in the number of category each case belongs to (If transactions between parent company and subsidiaries or between subsidiaries refer to the same transaction, it is not required to disclose twice. For example, if the parent company has already disclosed its transaction with a subsidiary, then the subsidiary is not required to disclose the transaction; for transactions between two subsidiaries, if one of the subsidiaries has disclosed the transaction, then the other is not required to disclose the transaction.):
(1)Parent company to subsidiary.
(2)Subsidiary to parent company.
(3)Subsidiary to subsidiary.
Note 3: Regarding percentage of transaction amount to total operating revenues or total assets, it is computed based on period-end balance of transaction to total assets for balance sheet accounts and based on accumulated transaction amount for the period to total operating revenues for income statement accounts.
Note 4: The Company may decide to disclose or not to disclose transaction details in this table based on the Materiality Principle.
Note 5: The rental charged and the payment terms agreed are available to third parties.

Table 3

Hsing Ta Cement Co., Ltd.

Information on investees

Year ended December 31, 2025

Table 4
Expressed in thousands of NTD
(Except as otherwise indicated)

Investor	Investee (Notes 1 and 2)	Location	Main business activities	Initial investment amount		Shares held as at December 31, 2025			Net profit (loss) of the investee for the year ended December 31, 2025 (Note 2(2))	Investment income(loss) recognised by the Company for the year ended December 31, 2025 (Note 2(3))	Footnote
				Balance as at December 31, 2025	Balance as at December 31, 2024	Number of shares (In thousands)	Ownership (%)	Book value
Hsing Ta Cement Co., Ltd.	Hsin I Ready Mixed Concrete Co., Ltd.	Taipei city	Manufacturing and sales of concrete	$ 60,720	$ 60,720	6,072	55.20	$ 395,055	$ 26,272	$ 14,502	Subsidiaries
	Synergy Development Co., Ltd	"	Agency service of real estates, etc.	58,800	58,800	5,880	98.00	66,136	772	757	"
	Soaring Power Corp.	Virgin Islands	Overseas investment	1,488,493	1,488,493	46,587	66.67	3,187,710	82,202	54,804	"

Note 1: If a public company is equipped with an overseas holding company and takes consolidated financial report as the main financial report according to the local law rules, it can only disclose the information of the overseas holding company about the disclosure of related overseas investee information.
Note 2: If situation does not belong to Note 1, fill in the columns according to the following regulations:
(1) The columns of 'Investee', 'Location', 'Main business activities', Initial investment amount' and 'Shares held as at December 31, 2025' should fill orderly in the Company's (public company's) information on investees and every directly or indirectly controlled investee's investment information, and note the relationship between the Company (public company) and its investee each (ex. direct subsidiary or indirect subsidiary) in the 'footnote' column..
(2) The 'Net profit (loss) of the investee for the year ended December 31, 2025' column should fill in amount of net profit (loss) of the investee for this period.
(3) The 'Investment income (loss) recognised by the Company for the year ended December 31, 2025' column should fill in the Company (public company) recognised investment income (loss) of its direct subsidiary and recognised investment income (loss) of its investee accounted for under the equity method for this period. When filling in recognised investment income (loss) of its direct subsidiary, the Company (public company) should confirm that direct subsidiary's net profit (loss) for this period has included its investment income (loss) which shall be recognised by regulations.

Table 4

Hsing Ta Cement Co., Ltd.

Information on investments in Mainland China

Year ended December 31, 2025

Table 5
Expressed in thousands of NTD
(Except as otherwise indicated)

Investee in Mainland China	Main business activities	Paid-in capital	Investment method (Note 2)	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2025	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the year ended December 31, 2025		Accumulated amount of remittance from Taiwan to Mainland China as of December 31 2025	Net income of investee as of December 31, 2025	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31, 2025 (Note 3(2)B)	Book value of investments in Mainland China as of December 31 2025	Accumulated amount of investment income remitted back to Taiwan as of December 31, 2025	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Jiangsu Ximing New Building Materials Co., Ltd	Manufacturing of new building materials, new special cement clinker, various silicate cement and new special cement, mineral powder, stone, commercial concrete and cement products; recycling and wholesale of recycled materials; treatment and recycling of sewage; treatment of solid waste; construction of interior and exterior decoration; sales of self-produced products and provide related supporting services; import and export business of self-management and agent of various goods and techniques (goods and techniques that are restricted to operate and prohibited to import and export be the country are excluded)	$ 2,449,191	2	$ 1,487,098	$ -	$ -	$ 1,487,098	$ 104,098	66.67%	$ 69,402	$ 3,191,741	$ 2,541,387	Note 3(2)B
	USD 76,880 (Note 1)	(Soaring Power Corp.)	USD 46,587				USD 46,587
Nanjing Xinrong New Green Materials Co., Ltd	Research and development of new environmental protection materials, technology promotion services; development and service of energy conservation and environmental protection technology; manufacturing of special equipment for environmental protection; promotion services of environmental protection technologies and energy conservation technologies; manufacturing and wholesale of non- metallic ore and products; wholesale of chemical products (excluding hazardous chemicals); fine processing of non- metallic ore	43,980	3		-	-	-	( 17,076)	35.15% (	6,002)	910	-	Note 3(2)C
	CNY 10,000	(Jiangsu Ximing New Building Materials Co., Ltd.)
Jiangsu Ximing New Building Materials Trading Co., Ltd.	Sales of cement products, sales of construction materials, sales of perlite- based building materials, sales of building decorative materials, sales of asbestos products, sales of eco-environmental materials, research and development of new materials and technology	88,230	3	-	-	-	-	24,631	66.67%	16,421	110,928	-	Note 3(2)B
	CNY 20,000	(Jiangsu Ximing New Building Materials Co., Ltd.)

Table 5, Page 1

Company name	Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2025	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA)	Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA
Hsing Ta Cement	$ 1,487,098	$ 1,656,669	$ 6,169,168
Co., Ltd.	USD 46.587	USD 51.254

Note 1: It includes capitalisation of earnings amounting to USD 7,000 with amount of USD 7,000×66.67% = USD 4,666.9 approved by MOEA.
Note 2: Investment methods are classified into the following four categories; fill in the number of category each case belongs to:

(1)Directly invest in a company in Mainland China.
(2) Through investing in an existing company in the third area, which then invested in the investee in Mainland China : Soaring Power Corp.
(3) Reinvestments through an existing company in Mainland China approved by MOEA: According to the regulation of MOEA, the Company needs no approval from MOEA for reinvestments through an existing company in Mainland China, thus, those investment amounts are not included in the ceiling on investments.
(4) Others.

Note 3: In the "Investment income (loss) recognised by the Company for the year ended December 31, 2025" column:

(1)It should be indicated if the investee was still in the incorporation arrangements and had not yet any profit during this period.
(2)Indicate the basis for investment income (loss) recognition in the number of one of the following three categories:

A. The financial statements that are audited and attested by international accounting firm which has cooperative relationship with accounting firm in R.O.C.
B.The financial statements that are audited and attested by R.O.C. parent company's CPA.

C. Others.

Note 4: The numbers in this table are expressed in New Taiwan Dollars.

AI assistant

HsingTa — Audit Report / Information 2025

51740_rns_2026-05-14_f4279ea9-4cb4-4a0e-b715-7190429f4109.pdf

INDEPENDENT AUDITORS' REPORT TRANSLATED FROM CHINESE

Opinion

Basis for opinion

Key audit matters

Occurrence of revenue recognition of cement sales

Description

How our audit addressed the matter

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

HSING TA CEMENT CO., LTD.

HSING TA CEMENT CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY

YEARS ENDED DECEMBER 31, 2025 AND 2024

HSING TA CEMENT CO., LTD.

HSING TA CEMENT CO., LTD.

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

1. History and Organisation

2. The Date of Authorisation for Issuance of the Financial Statements and Procedures for Authorisation

3. Application of New Standards, Amendments and Interpretations

(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRS®”) Accounting Standards that came into effect as endorsed by the Financial Supervisory Commission (“FSC”)

(2) Effect of new issuances of or amendments to IFRS Accounting Standards as endorsed by the FSC but not yet adopted by the Company

4. Summary of Material Accounting Policies

B. Contract liabilities

(18) Interest income

(19) Other income

(20) Other gains and losses

(24) Income tax

B. Purchases

C. Notes receivable

9. Significant Contingent Liabilities and Unrecognised Contract Commitments

HSING TA CEMENT CO., LTD.

STATEMENT OF CASH AND CASH EQUIVALENTS

DECEMBER 31, 2025

HSING TA CEMENT CO., LTD.

STATEMENT OF FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME - CURRENT

HSING TA CEMENT CO., LTD.

STATEMENT OF NOTES RECEIVABLE

DECEMBER 31, 2025

HSING TA CEMENT CO., LTD.

STATEMENT OF ACCOUNTS RECEIVABLE

DECEMBER 31, 2025

HSING TA CEMENT CO., LTD.

STATEMENT OF INVENTORIES

DECEMBER 31, 2025

HSING TA CEMENT CO., LTD.

STATEMENT OF CHANGES IN FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS - NON-CURRENT

FOR THE YEAR ENDED DECEMBER 31, 2025

HSING TA CEMENT CO., LTD.

STATEMENT OF CHANGES IN LONG-TERM EQUITY INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD

FOR THE YEAR ENDED DECEMBER 31, 2025

HSING TA CEMENT CO., LTD.

STATEMENT OF ACCOUNTS PAYABLE

HSING TA CEMENT CO., LTD.

STATEMENT OF OPERATING REVENUE

FOR THE YEAR ENDED DECEMBER 31, 2025

HSING TA CEMENT CO., LTD.

STATEMENT OF OPERATING COSTS

FOR THE YEAR ENDED DECEMBER 31, 2025

HSING TA CEMENT CO., LTD.

STATEMENT OF SELLING EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2025

HSING TA CEMENT CO., LTD.

STATEMENT OF ADMINISTRATIVE EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2025

HSING TA CEMENT CO., LTD.

SUMMARY STATEMENT OF CURRENT PERIOD EMPLOYEE BENEFITS, DEPRECIATION, DEPLETION AND AMORTIZATION EXPENSES BY FUNCTION

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

Note:

HSING TA CEMENT CO., LTD.

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