Stock Code: 2527

Hung Ching Development & Construction Co., Ltd.

Parent Company Only Financial Statements and Independent Auditors' Report

For the Years Ended December 31, 2025 and 2024

Address: 10F, No. 420, Sec. 1, Keelung Rd., Taipei City, Taiwan

Tel: (02)2691-5899

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

§TABLE OF CONTENTS§

ITEM		PAGE	NUMBER OF FINANCIAL STATEMENT NOTES
1.	Cover	1	-
2.	Table of Contents	2	-
3.	Independent Auditors’ Report	3-6	-
4.	Parent Company Only Balance Sheets	7	-
5.	Parent Company Only Statements of Comprehensive Income	8-9	-
6.	Parent Company Only Statements of Changes in Equity	10	-
7.	Parent Company Only Statements of Cash Flows	11-12	-
8.	Notes to Parent Company Only Financial Statements
	a. Company History	13	1
	b. Date and Procedures of Authorization of Financial Statements	13	2
	c. Application of New and Amended Standards and Interpretations	13-15	3
	d. Summary of Significant Accounting Policies	15-28	4
	e. Primary Sources of Uncertainties in Major Accounting Judgments, Estimates, and Assumptions	28-29	5
	f. Details of Significant Accounts	29-53	6-23
	g. Transactions with Related Parties	53-58	24
	h. Pledged Assets	59-60	25
	i. Significant Contingent Liabilities and Unrecognized Contract Commitments	-	-
	j. Significant Disaster Loss	-	-
	k. Significant Events after the Balance Sheet Date	60	26
	l. Others	-	-
	m. Supplementary Disclosures
	1) Information on Significant Transactions	60, 62-66	27
	2) Information on Invested Companies	60, 67	27
	3) Information on Investments in Mainland China	60-61, 68	27
	n. Segment Information	-	-
9.	Statements of Major Accounting Subjects	69-80	-

Independent Auditors' Report

To the Board of Directors and the Shareholders of Hung Ching Development & Construction Co., Ltd.

Opinion

We have audited the accompanying parent company only financial statements of the Hung Ching Development & Construction Co., Ltd. (the “Company”), which comprise the parent company only balance sheets as of December 31, 2025 and 2024, and the parent company only statements of comprehensive income, changes in equity and cash flows for the years then ended, and the notes to the parent company only financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying parent company only financial statements present fairly, in all material respects, the parent company only financial position of the Company as of 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 and the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards generally accepted in the Republic of China. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Parent Company Only Financial Statements section of our report. We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Company's parent company only financial statements for the year ended December 31, 2025. These matters were addressed in the context of our audit of the parent company only financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matters for the Company's parent company only financial statements for the year ended December 31, 2025 are stated as follows:

Sales revenue of building and land

For the year ended 2025, Hung Ching Development & Construction Co., Ltd. recognized revenue from the sale of real estate amounting to NT$314,786 thousand, representing 57% of its total operating revenue for the year. This item is material to the parent company only financial statements and constitutes one of the Company’s primary sources of revenue. Accordingly, we have identified revenue from the sale of real estate as a key audit matter. Please refer to Notes 4 and 18 to the parent company only financial statements.

The main audit procedures performed on the specific levels in respect of the above-mentioned key audit matter for the audit of the year are as follows:

We understood and tested the design and operating effectiveness of the internal controls related to the sales cycle.
Obtaining the details of building and land for sales for the whole year:
(1) sampling and verifying the contracts signed by the buyers and sellers to confirm the contract price and transaction target;
(2) sampling and verifying the registration date of the transfer of property ownership to verify that the property ownership has been transferred to the purchaser.

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 members of the Audit Committee) are responsible for overseeing the Company's financial reporting process.

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

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

As part of an audit in accordance with the auditing standards generally accepted in the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the parent 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
5 -

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 Company audit. We remain solely responsible for our opinion to the Company.

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 about 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 for the year ended December 31, 2025 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.

Deloitte & Touche

Certified Public Accountant Wang-Sheng Lin

Certified Public Accountant Jun-Hong Shi

Financial Supervisory Commission Approval Document No.:
Jin-Guan-Zheng-Shen-Zi No. 1060023872

Financial Supervisory Commission Approval Document No.:
Jin-Guan-Zheng-Shen-Zi No. 1110348898

March 6, 2026

Hung Ching Development & Construction Co., Ltd.
Parent Company Only Balance Sheets
December 31, 2025 and 2024
Unit: NT$ thousand

Code	Assets	December 31, 2025		December 31, 2024
		Amount	%	Amount	%
Current assets
1100	Cash and cash equivalents (Note 6)	$ 61,293	-	$ 874,342	4
1150	Notes receivable (Notes 7 and 18)	145	-	728	-
1172	Trade receivables (Notes 7 and 18)	5,134	-	5,695	-
1180	Trade receivables from related parties (Notes 7, 18 and 24)	1,400	-	1,400	-
1200	Other receivables (Notes 7)	213	-	6,053	-
1210	Other receivables from related parties (Notes 7 and 24)	800,043	3	1,654,943	6
130X	Inventories (Notes 5, 8, 24 and 25)	9,024,483	28	6,808,258	25
1429	Prepayments (Note 13)	2,537,101	8	2,471,590	9
1479	Other current assets (Note 13)	1,230	-	1,426	-
11XX	Total current assets	12,431,042	39	11,824,435	44
Non-current assets
1517	Financial assets at FVTOCI - non-current (Notes 9 and 25)	11,054,753	34	7,149,182	26
1550	Investments accounted for using equity method (Note 10)	5,263,287	16	4,654,835	17
1600	Property, plant and equipment (Notes 11, 19 and 25)	388,069	1	391,727	2
1760	Investment properties (Notes 12, 19 and 25)	3,024,536	10	2,977,104	11
1780	Intangible assets (Note 19)	205	-	311	-
1840	Deferred tax assets (Note 20)	17,431	-	27,116	-
1990	Other non-current assets (Note 19)	10,617	-	12,457	-
15XX	Total non-current assets	19,758,898	61	15,212,732	56
1XXX	Total assets	$ 32,189,940	100	$ 27,037,167	100
Liabilities and equity
Current liabilities
2100	Short-term borrowings (Notes 14, 23 and 25)	$ 2,860,000	9	$ 5,390,000	20
2110	Short-term bills payable (Notes 14, 23 and 25)	5,266,471	17	4,491,085	17
2130	Contract liabilities (Note 18)	1,071	-	28,944	-
2170	Trade payables (Note 15)	99,812	-	56,671	-
2180	Trade payables to related parties (Notes 15 and 24)	1,558,596	5	1,156,851	4
2219	Other payables	101,137	-	168,734	1
2220	Other payables - related parties	3,822	-	-	-
2230	Current tax liabilities	30,201	-	132,113	1
2320	Long-term borrowings - current portion (Notes 14, 23 and 25)	1,684,864	5	360,609	1
2399	Other current liabilities	9,199	-	11,992	-
21XX	Total current liabilities	11,615,173	36	11,796,999	44
Non-current liabilities
2540	Long-term borrowings (Notes 14, 23 and 25)	3,400,645	11	1,741,806	6
2645	Guarantee deposits received (Note 12)	23,520	-	23,203	-
25XX	Total non-current liabilities	3,424,165	11	1,765,009	6
2XXX	Total liabilities	15,039,338	47	13,562,008	50
Equity attributable to owners of the Company (Note 17)
3110	Share capital	2,703,060	8	2,703,060	10
3200	Capital Surplus	388,635	1	371,540	2
Retained earnings
3310	Legal reserve	1,192,447	4	1,065,213	4
3320	Special reserve	187,713	-	274,472	1
3350	Unappropriated earnings	2,909,278	9	3,245,678	12
3300	Total retained earnings	4,289,438	13	4,585,363	17
3400	Other equity	10,225,281	32	6,271,008	23
3500	Treasury Shares	( 455,812 )	( 1 )	( 455,812 )	( 2 )
31XX	Total equity	17,150,602	53	13,475,159	50
Total equity and liabilities		$ 32,189,940	100	$ 27,037,167	100

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

Chairman: Wen-Hsiang Chien
Manager: Chia-Pei Chou
Accounting Supervisor: Fang-Yin Chen

Hung Ching Development & Construction Co., Ltd.
Parent Company Only Statements of Comprehensive Income
January 1 to December 31, 2025 and 2024
Unit: NT$ thousands, except earnings per share of NT$

Code		2025		2024
		Amount	%	Amount	%
	Operating revenue (Notes 18 and 24)
4100	Sales revenue of building and land	$ 314,786	57	$ 6,922,512	97
4300	Rental revenue	167,872	30	154,904	2
4800	Other operating revenue	71,393	13	60,224	1
4000	Total operating revenue	554,051	100	7,137,640	100
	Operating cost (Notes 19 and 24)
5110	Costs of building and land for sale (Note 8)	83,172	15	5,670,883	79
5300	Rental costs	118,362	21	105,602	2
5800	Other operating costs	63,225	12	54,496	1
5000	Total operating costs	264,759	48	5,830,981	82
5900	Gross operating profit	289,292	52	1,306,659	18
	Operating expenses (Notes 19 and 24)
6100	Selling and marketing expenses	24,782	4	102,754	1
6200	General and administrative expenses	165,707	30	221,247	3
6000	Total operating expenses	190,489	34	324,001	4
6900	Net operating income	98,803	18	982,658	14
	NON-OPERATING INCOME AND EXPENSES
7100	Interest income (Note 19)	43,626	8	44,928	1
7010	Other income (Note 19)	254,763	46	240,283	3
7020	Other gains and losses (Note 19)	45,270	8	( 50 )	-
7050	Finance costs (Note 19)	( 297,844 )	( 54 )	( 303,258 )	( 4 )
7060	Share of loss (profit) of subsidiaries and affiliates accounted for under equity method	132,192	24	471,385	6
7000	Total non-operating income and expenses	178,007	32	453,288	6

(Continued on the next page)

(Continued from the previous page)

Code		2025		2024
		Amount	%	Amount	%
7900	Income before tax	$ 276,810	50	$ 1,435,946	20
7950	Income tax expense (Note 20)	32,123	6	163,602	2
8200	NET PROFIT FOR THE YEAR	244,687	44	1,272,344	18
	Other comprehensive income/(loss)
8310	Items that will not be reclassified subsequently to profit or loss
8316	Unrealized gain/(loss) on investments in equity instruments at fair value through other comprehensive income	3,905,571	705	1,191,530	16
8330	Share of other comprehensive income or loss of subsidiaries accounted for using the equity method	48,047	9	( 18,589 )	-
8360	Items that may be reclassified subsequently to profit or loss
8361	Exchange differences on translating the financial statements of foreign operations	818	-	4,909	-
8399	Income tax related to items that will be reclassified to profit or loss (Note 20)	( 163 )	-	( 982 )	-
8300	Other comprehensive income/(loss) for the year, net of income tax	3,954,273	714	1,176,868	16
8500	Total comprehensive income/(loss) for the year	$ 4,198,960	758	$ 2,449,212	34
	Earnings per share (Note 21)
9710	Basic	$ 0.93		$ 4.86
9810	Diluted	$ 0.93		$ 4.84

The accompanYin notes are an integral part of the parent company only financial statements.

Chairman: Wen-Hsiang Chien

Manager: Chia-Pei Chou

Accounting Supervisor: Fang-Yin Chen

Hung Ching Development & Construction Co., Ltd.

Parent Company Only Statements of Changes in Equity

January 1 to December 31, 2025 and 2024

Unit: NT$ thousand

Code		Share capital			Retained earnings			Other equity
		Number of Shares (In Thousand Shares)	Amount	Capital Surplus	Legal reserve	Special reserve	Unappropriated earnings	Exchange differences on translating the financial statements of foreign operations	Unrealized gain (loss) on financial assets at fair value through other comprehensive income	Treasury Shares	Total equity
A1	Balance as of January 1, 2024	270,306	$ 2,703,060	$ 358,719	$ 1,020,589	$ 334,733	$ 2,363,156	($ 6,505)	$ 5,100,645	($ 455,812)	$ 11,418,585
	Appropriation and distribution of retained earnings 2023
B1	Legal reserve	-	-	-	44,624	-	( 44,624 )	-	-	-	-
B17	Reversal of special capital reserve	-	-	-	-	( 60,261 )	60,261	-	-	-	-
B5	Cash dividend to shareholders	-	-	-	-	-	( 405,459 )	-	-	-	( 405,459 )
D1	Net profit for 2024	-	-	-	-	-	1,272,344	-	-	-	1,272,344
D3	Other comprehensive income (loss) (after tax) for 2024	-	-	-	-	-	-	3,927	1,172,941	-	1,176,868
D5	Total comprehensive income/(loss) for 2024	-	-	-	-	-	1,272,344	3,927	1,172,941	-	2,449,212
M1	Adjustment in capital surplus from dividends paid to subsidiaries	-	-	12,821	-	-	-	-	-	-	12,821
Z1	Balance as of December 31, 2024	270,306	2,703,060	371,540	1,065,213	274,472	3,245,678	( 2,578 )	6,273,586	( 455,812 )	13,475,159
	Appropriation and distribution of retained earnings 2024
B1	Legal reserve	-	-	-	127,234	-	( 127,234 )	-	-	-	-
B17	Reversal of special capital reserve	-	-	-	-	( 86,759 )	86,759	-	-	-	-
B5	Cash dividend to shareholders	-	-	-	-	-	( 540,612 )	-	-	-	( 540,612 )
D1	Net profit for 2025	-	-	-	-	-	244,687	-	-	-	244,687
D3	Other comprehensive income (loss) (after tax) for 2025	-	-	-	-	-	-	655	3,953,618	-	3,954,273
D5	Total comprehensive income/(loss) for 2025	-	-	-	-	-	244,687	655	3,953,618	-	4,198,960
M1	Adjustment in capital surplus from dividends paid to subsidiaries	-	-	17,095	-	-	-	-	-	-	17,095
Z1	Balance as of December 31, 2025	270,306	$ 2,703,060	$ 388,635	$ 1,192,447	$ 187,713	$ 2,909,278	($ 1,923 )	$ 10,227,204	($ 455,812 )	$ 17,150,602

The accompanYin notes are an integral part of the parent company only financial statements.

Chairman: Wen-Hsiang Chien

Manager: Chia-Pei Chou

Accounting Supervisor: Fang-Yin Chen

Hung Ching Development & Construction Co., Ltd.
Parent Company Only Statements of Cash Flows
January 1 to December 31, 2025 and 2024
Unit: NT$ thousand

Code		2025	2024
Cash flows from operating activities
A00010	Income before tax for the year	$ 276,810	$ 1,435,946
A20010	Adjustments to reconcile profit (loss)
A20100	Depreciation expenses	111,357	101,744
A20200	Amortization of long-term prepayments	2,762	3,103
A20900	Finance costs	297,844	303,258
A21200	Interest income	( 43,626 )	( 44,928 )
A21300	Dividend income	( 233,722 )	( 229,581 )
A22300	Share of loss (profit) of subsidiaries and affiliates accounted for under equity method	( 132,192 )	( 471,385 )
A22500	Gain on disposal of property, plant and equipment	( 314 )	-
A23700	Reversal gain on impairment of investment property	( 45,910 )	-
A23800	Inventory write-down losses (reversal of write-down gains)	( 55,266 )	135,170
A30000	Changes in operating assets and liabilities, net
A31130	Notes receivable	583	2,412
A31150	Trade receivables	561	4,714
A31180	Other receivables	5,502	( 7,371 )
A31190	Other receivables - related party	283,700	( 32,944 )
A31200	Inventories	( 2,231,996 )	2,898,466
A31230	Prepayments	( 65,511 )	( 372,873 )
A31240	Other current assets	196	( 1,404 )
A32125	Contract liabilities	( 27,873 )	( 11,789 )
A32150	Trade Payables	43,141	( 18,956 )
A32160	Trade payables to related parties	401,745	23,807
A32180	Other payables	( 64,395 )	28,489
A32190	Other payables - related parties	510	( 152 )
A32230	Other current liabilities	( 2,793 )	( 3,190 )
A33000	Cash (outflow) inflow generated from operating activities	( 1,478,887 )	3,742,536
A33300	Interest paid	( 335,826 )	( 386,471 )
A33500	Income tax paid	( 124,513 )	( 9,217 )
AAAA	Net cash (outflow) inflow from operating activities	( 1,939,226 )	3,346,848

(Continued on the next page)

(Continued from the previous page)

Code		2025	2024
	Cash flows from investing activities
B03800	Decrease in refundable deposits	($ 816)	$ 50,333
B02700	Acquisition of property, plant and equipment	( 92)	-
B02800	Disposal of property, plant and equipment	314	-
B05400	Acquisition of investment properties	-	( 2,567)
B05500	Disposal of investment properties	-	4,235
B07500	Interest received	43,964	47,606
B07600	Dividends received	394,622	460,106
BBBB	Net cash generated from investing activities	437,992	559,713
	Cash flows from financing activities
C00100	Decrease in short-term borrowings	( 2,530,000)	( 478,000)
C00500	Increase (Decrease) in short-term bills payable	775,386	( 1,361,731)
C01600	Long-term loans	3,343,703	1,020,000
C01700	Repayments of long-term borrowings	( 360,609)	( 1,956,666)
C03000	Increase in guarantee deposits received	1,803	3,985
C03100	Decrease in guarantee deposits received	( 1,486)	( 2,726)
C03700	Increase in other payables - related parties	-	1,500,000
C03800	Decrease in other payables - related parties	-	( 1,500,000)
C04500	Distribution of cash dividend	( 540,612)	( 405,459)
CCCC	Net cash inflow (outflow) from financing activities	688,185	( 3,180,597)
EEEE	Increase (decrease) in Cash and Cash Equivalents for the year	( 813,049)	725,964
E00100	Cash and cash equivalents, beginning of year	874,342	148,378
E00200	Cash and cash equivalents, end of year	$ 61,293	$ 874,342

The accompanYin notes are an integral part of the parent company only financial statements.

Chairman: Wen-Hsiang Chien

Manager: Chia-Pei Chou

Accounting Supervisor: Fang-Yin Chen

Hung Ching Development & Construction Co., Ltd.
Notes to Parent Company Only Financial Statements
January 1 to December 31, 2025 and 2024
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Company History
The Company, incorporated in 1986 with shares listed on the Taiwan Stock Exchange, mainly engaged in appointment of contractors to build public housing developments and commercial buildings for leasing and selling and in and management and investment of other relevant business.
The parent company only financial statements are presented in the Company’s functional currency, the New Taiwan dollar.
Date and Procedures of Authorization of Financial Statements
The parent company only financial statements were approved by the Board of Directors and authorized for issue on March 6, 2026.
Application of New and Amended Standards and Interpretations
a. Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, "IFRSs") endorsed and issued into effect by the Financial Supervisory Commission (FSC).
The application of the amendments to the IFRSs endorsed and issued into effect by the FSC is not expected to result in significant changes to the Company's accounting policies.
b. The IFRSs endorsed by the FSC for application in 2026

New, Revised or Amended Standards and Interpretations	Effective Date Issued by IASB
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
"Annual Improvements — Volume 11"	January 1, 2026
IFRS 17 "Insurance Contracts" (including the 2020 and 2021 amendments)	January 1, 2023

The Company assessed that the amendments to the above standards or interpretations would not have a significant impact on the financial position and financial performance.

13 -

c. IFRSs issued by the IASB but not yet endorsed and issued into effect by the FSC

New, Revised or Amended Standards and Interpretations	Effective Date Issued by IASB (Note 1)
Amendments to IFRS 10 and IAS 28 "Sale or Contribution of Assets between an Investor and its Associate or Joint Venture"	To be determined
IFRS 18 "Presentation and Disclosure in Financial Statements"	January 1, 2027 (Note 2)
IFRS 19 "Subsidiaries without Public Accountability: Disclosures" (including the 2025 amendments)	January 1, 2027
Amendments to IAS 21 “Translation into a Hyperinflationary Presentation Currency”	January 1, 2027

Note 1: Unless stated otherwise, the aforementioned New, Revised or Amended Standards and Interpretations are effective for annual periods beginning on or after their respective effective dates.

Note 2: The Financial Supervisory Commission announced on September 25, 2025 that enterprises in Taiwan shall apply IFRS 18 effective January 1, 2028. Early adoption is permitted upon endorsement of IFRS 18 by the Financial Supervisory Commission.

IFRS 18 "Presentation and Disclosure in Financial Statements" and related consequential amendments

IFRS 18 will supersede IAS 1 "Presentation of Financial Statements." The key changes introduced by this standard include:

The Company shall assess whether it engages in investing in specified types of assets and providing financing to customers as distinct main business activities, and accordingly classify items of income and expenses in the statement of profit or loss into operating, investing, financing, income tax, and discontinued operations categories.
The statement of profit or loss must present operating profit or loss, profit or loss before financing and income tax, as well as clearly labeled subtotals and totals of profit or loss.
Enhanced aggregation and disaggregation guidance: the Company must identify assets, liabilities, equity, income, expenses, and cash flows resulting from individual transactions or other events and classify and aggregate them based on shared characteristics. Each line item in the primary financial statements should exhibit at least one similar characteristic. Items with dissimilar characteristics
14 -

should be disaggregated in both the primary financial statements and the notes. The Company can label items as "other" only when no more informative label is available.

Disclosure of management-defined performance measures: when the Company communicates publicly outside the financial statements and conveys management’s view of an aspect of the consolidated entity’s overall financial performance to users of the financial statements, it shall disclose, in a single note to the financial statements, information related to management-defined performance measures. Such disclosures shall include a description of the measure, how it is calculated, a reconciliation to subtotals or totals specified by IFRS Accounting Standards, and the income tax and non-controlling interest effects of the related reconciling items.

In addition, the following consequential amendments have been made to IAS 7 "Statement of Cash Flows":

When the Company prepares cash flows from operating activities using the indirect method, operating profit shall be used as the starting point for reconciliation.
Interest and dividends received by the Company shall be classified as investing activities, while interest and dividends paid shall be classified as financing activities. Where the Company determines that it has specified main business activities, it shall consider the classification of dividend income, interest income, and interest expense presented in the statement of profit or loss in determining the classification of cash flows from dividends received, interest received, and interest paid in the statement of cash flows. However, each of the aforementioned cash flows shall be classified in only one category within the statement of cash flows.

Apart from the aforementioned impacts, as of the date the accompanying parent company only financial statements were authorized for issue, the Company continues in evaluating the impact on its financial position and financial performance as a result of the aforementioned standards or interpretations. The related impact will be disclosed when the evaluation has been completed.

4. Summary of Significant Accounting Policies

a. Statement of compliance

The accompanying parent company only financial statements have been prepared in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IFRSs endorsed and issued into effect by the FSC.

b. Basis of preparation

The accompanying parent company only financial statements have been prepared on the historical cost basis except for financial instruments which are measured at fair value.

The fair value measurements, which are grouped into Levels 1 to 3 based on the degree to which the related inputs are observable and based on the significance of the related inputs, are described as follows:

1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities on the measurement date;
2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for an asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and
3) Level 3 inputs are unobservable inputs for the asset or liability.

In preparing the parent company only financial statements, the Company's investments in subsidiaries and associates are accounted for using the equity method. In order to agree with the amount of net income, other comprehensive income and equity attributable to shareholders of the consolidated financial statements of this year, the differences of the accounting treatment between the parent company only basis and the consolidated basis are adjusted under the heading of "investments accounted for using equity method", "share of profits of subsidiaries, associates, and joint ventures, share of other comprehensive income of subsidiaries, associates, and joint ventures" in the parent company only financial statements, and other related equity items.

c. Standards for Classification of Current and Noncurrent Assets and Liabilities

Current assets include:

1) Assets held for trading purposes;
2) Assets expected to be realized within 12 months after the balance sheet date; and
3) Cash and cash equivalents, excluding those that are restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.

Current liabilities include:

1) Obligations incurred for trading purposes;
2) Obligations expected to be settled within 12 months from the balance sheet date (liabilities with long-term refinancing or rearrangement of payment terms completed after the balance sheet date and before the publication of the financial statements are also deemed as current liabilities); and

16 -

3) Liabilities for which the Company does not have a substantive right to defer settlement beyond 12 months after the balance sheet date.

Assets and liabilities that are not classified as current are classified as non-current.

The Company is engaged in the construction business, which has an operating cycle of over 1 year. The normal operating cycle applies when considering the classification of current or non-current for the construction-related assets and liabilities.

d. Foreign Currency

In preparing the financial statements of each individual entity, transactions in currencies other than the entity's functional currency (i.e., foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.

Monetary items denominated in foreign currencies are translated at the rates prevailing on each date of balance sheets. Exchange differences on monetary items arising from settlement or translation are recognized in profit or loss in the period in which they arise. Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rate at the date of the transaction (i.e., not retranslated).

For the purpose of presenting the parent company only financial statements, the assets and liabilities of the Company's foreign operations (including subsidiaries that operate in countries or use currencies different from that of the Company) are translated into the New Taiwan dollar using the exchange rate of each balance sheet date. Income and expense items are translated using the average exchange rates of the current period, with exchange differences arising therefrom recognized in other comprehensive income.

e. Inventories

Inventories comprise real estate under development, real estate held for development, and building and land held for sale. Inventory is stated at the lower of cost or net realizable value. Comparing costs with net realizable value is based on individual item. Net realizable value represents the estimated selling price of inventories less the estimated cost of completion and the estimated cost necessary to make the sale. The actual costs incurred in the construction of the real estate inventory are transferred to current operating costs in proportion of floor space to the recognition of revenue from sales of real estate.

f. Investments Accounted for Using Equity Method

The Company uses equity method for investment in subsidiaries and associates.

1) Investment in subsidiaries

Subsidiaries are entities controlled by the Company.

17 -

Under the equity method, the investment is initially treated at cost and adjusted thereafter for the post-acquisition change in the Company's interest in profit and loss, shares in other comprehensive income and profit distribution by the subsidiaries. In addition, changes in other equity of the subsidiaries are recognized based on the shareholding percentage.

The excess of the cost of acquisition over the Company's share of the net fair value of the identifiable assets and liabilities of the subsidiaries constituting the business as of the date of acquisition is recorded as goodwill, which is included in the carrying amount of the investment and is not subject to amortization; the excess of the Company's share of the net fair value of the identifiable assets and liabilities of the subsidiaries constituting the business as of the date of acquisition over the cost of acquisition is recorded as current income.

The unrealized profit or loss in downstream transactions between the Company and the subsidiary shall be eliminated in the parent company only financial statements. Profit or loss generated in upstream transactions between the Company and the subsidiaries or transactions between the subsidiaries shall only be recognized in the Parent Company Only Financial Statements when it is not related to the Company's interest in the subsidiaries.

2) Investments in associates

Associates are entities over which the Company has major influence but they are neither a subsidiary nor joint ventures.

The Company uses equity method for investment in associates.

Under the equity method, the investment is initially treated at cost and adjusted thereafter for the post-acquisition change in the Company's interest in profit and loss, shares in other total income and profit distribution by the associates. In addition, changes in the interests in associates are recognized based on the shareholding percentage.

Any excess of acquisition cost over the Company's share of an associate's or a joint venture's identifiable assets and liabilities measured at the fair value on the date of acquisition is recognized as goodwill. The goodwill shall be included in the carrying amount of the investment but not allowed for amortization. If the Company's share of the net fair value of the identifiable assets and liabilities exceeds acquisition cost, the excessive amount is recognized immediately in profit or loss.

18 -

When the Company's share of loss derived from the investment of an affiliate equals or exceeds the Company's interest (including the carrying amount of the investment and other long-term substantial interests in the associate's net asset in proportion to ownership percentage), the Company shall cease recognizing losses further. The Company shall only recognize additional losses and liabilities within the scope of occurred legal obligations, constructive obligations, or payments made on behalf of the associates.

To assess impairment, the Company has to consider the overall carrying amount (including goodwill) of the investment as a single asset to compare the recoverable and carrying amounts. The cost of impairment identified is to be deemed as part of the carrying amount of the investment. Any reversal of the impairment loss is recognized only to the extent of the subsequent increases in the recoverable amount of investment.

Profit or loss in up- and downstream transactions between the Company and the associates or transactions between associates shall only be recognized in the Parent Company Only Financial Statements when it is not related to the Company's interest in the associates.

g. Property, Plant and Equipment

Property, plant and equipment are recognized at cost, and then measured at cost less accumulated depreciation and accumulated impairment.

Freehold land is not depreciated.

The depreciation of property, plant and equipment is separately recognized using the straight-line method over their useful lives to each significant part. The Company reviews the estimated useful lives, residual values and depreciation method at least at the end of each reporting period, with the effect of any changes in estimates accounted for on a prospective basis.

Upon disposal of property, plant and equipment, the difference between the net sales proceeds and the carrying amount of the asset is recognized in profit or loss.

h. Investment Properties

Investment property is a property held to earn rental and/or for capital appreciation. Investment property also includes land held for future use that is currently undetermined. Investment property is initially measured at cost, including transaction costs. Subsequent to initial recognition, investment property is measured at cost less accumulated

19 -

depreciation and accumulated impairment loss. Depreciation of investment properties is recognized using the straight-line method.

Upon disposal of investment properties, the difference between the net sales proceeds and the carrying amount of the asset is recognized in profit or loss.

i. Contract cost-related assets

Sales service fees paid for sales of real estate under exclusive sales contract of property held for sale are only incurred at the time of obtaining a client's contract, and are recognized as an additional cost of obtaining the contract to the extent the amounts are recoverable, and are written off when the legal ownership of the real estate is passed to the client.

j. Impairment of tangible and intangible assets (excluding goodwill) and related assets of contract costs

On each balance sheet date, the Company reviews the carrying amounts of its tangible and intangible assets (excluding goodwill) to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. If corporate assets can be allocated to cash-generating units with a reasonable and consistent basis, then they are allocated to their individual cash-generating units. Otherwise, they are allocated to the smallest group of cash generating units for which a reasonable and consistent allocation basis can be identified. For intangible assets with indefinite life and that are not yet available for use, they are subject to annual impairment test at the time there are indications of impairment.

The recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an individual asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or the cash-generating unit is reduced to its recoverable amount, with the resulting impairment loss recognized in profit or loss.

An impairment loss on inventory, property, plant and equipment, and intangible asset related to the contracts with customers shall be recognized in accordance with the applicable standards of inventory impairment and the above-mentioned principles. Then, the impairment loss is recognized to the extent that the carrying amount of the assets related to contract costs exceeds the remaining amount of consideration that the

20 -

Company expects to receive in exchange for related goods or services less the direct costs related to providing those goods or services. The assets related to the contract costs are then included in the carrying amount of the cash-generating unit to which they belong for the purpose of evaluating impairment of that cash-generating unit.

When an impairment loss is subsequently reversed, the carrying amount of the corresponding asset, cash-generating unit or assets related to contract costs is increased to the revised estimate of its recoverable amount, but only to the extent of the carrying amount, less any amount of amortization or depreciation, that would have been determined had no impairment loss been recognized on the asset in prior years. A reversal of an impairment loss is recognized in profit or loss.

k. Financial Instruments

Financial assets and liabilities shall be recognized in the parent company only balance sheet when the Company becomes a party to the contractual provisions of the instruments.

While financial assets and liabilities are initially recognized, transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities are added to or deducted from the fair value of those financial assets and financial liabilities that are not measured at fair value through profit or loss. Transaction costs directly attributable to the acquisition or issue of financial assets or financial liabilities measured at fair value through profit or loss are recognized immediately in profit or loss.

1) Financial assets

Regular way transactions of financial assets are recognized and derecognized on a settlement date basis.

(a) Category of measurement

Financial assets held by the Company are classified into the following categories: financial assets at amortized cost and investments in equity instruments at fair value through other comprehensive income (FVTOCI).

i. Financial asset measured at amortized cost

The Company's investments in financial assets that meet the following two conditions are subsequently measured at amortized cost:

i) Within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and

21 -

ii) The contractual terms give rise to cash flows on specified dates that are solely payments of principal and interest on the principal amount outstanding.

Subsequent to initial recognition, financial assets measured at amortized cost, including cash, notes receivable, trade receivables, and other receivable, are measured at amortized cost of total carrying amount determined by the effective interest method less any impairment loss. Any foreign exchange gain/loss is recognized in profit or loss.

Interest income is calculated by applying the effective interest rate to the gross carrying amount of such a financial asset, except for:

i) Purchased or originated credit-impaired financial assets, for which interest income is calculated by applying the credit-adjusted effective interest rate to the amortized cost of such financial assets; and

ii) Financial assets that are not credit-impaired on purchase or origination but have subsequently become credit-impaired, for which interest income is calculated by applying the effective interest rate to the amortized cost of such financial assets in subsequent reporting periods.

Credit-impaired financial assets are those where the issuer or debtor has experienced major financial difficulties, defaults, the debtor is likely to file for bankruptcy or other financial restructuring, or disappearance of an active market for the financial assets due to financial difficulties.

Cash equivalents comprise time deposits that will mature within 3 months after the acquisition date, that are highly liquid and readily convertible to known amount of cash, and that are subject to an insignificant risk of changes in value. Cash equivalents are used to satisfy short-term cash commitments.

ii. Investments in equity instruments at FVTOCI

On initial recognition, the Company may make an irrevocable election to designate investments in equity instruments as at FVTOCI. Designation as at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognized by an acquirer in a business combination.

22 -

Investments in equity instruments at FVTOCI are measured at fair value and subsequently measured at fair value with gain or loss arising from changes in fair value recognized in other comprehensive income and accumulated in other equity. The cumulative gain or loss will not be reclassified to profit or loss on disposal of the equity investments; instead, it will be transferred to retained earnings.

Dividends on these investments in equity instruments at FVTOCI are recognized in profit or loss when the Company's right to receive the dividends is established, unless the dividends clearly represent a recovery of part of the cost of the investment.

(b) Impairment of financial assets

On each date of balance sheets, the Company evaluates a loss allowance for financial assets at amortized cost (including trade receivables) based on expected credit loss.

The loss allowances for notes receivable and trade receivables are recognized at an amount equal to lifetime expected credit losses. Other financial assets are first evaluated whether or not the credit risk has increased significantly since initial recognition. If it has not increased significantly, a loss allowance is recognized at an amount equal to expected credit loss within 12 months. If it has increased significantly, a loss allowance is recognized at an amount equal to expected credit loss over the expected life.

Expected credit losses are the weighted average credit losses resulting from a risk of default events as the weight. Expected credit losses within 12 months represent the expected credit losses resulting from possible default events of a financial instrument within 12 months after the reporting date. Expected credit loss over the expected life represent the expected credit losses resulting from all possible default events of a financial instrument over the expected life.

For the purpose of internal credit risk management, the Company, without considering the collateral it holds, determines that the following circumstances represent a default in financial assets:

i. There are internal or external information showing that the borrower is no longer able to pay off the debt.

23 -

ii. Where the debt is overdue more than 365 days, unless there is reasonable and authenticated information showing that the delayed default basis is more appropriate.

An impairment loss of all financial assets is recognized with a corresponding adjustment to their carrying amount through a loss allowance account.

The Company derecognizes a financial asset only when the contractual rights to the cash flows from the financial asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the financial asset to another entity.

On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset's carrying amount and the sum of the consideration received and receivable is recognized in profit or loss. On derecognition of equity instruments measured at FVTOCI in its entirety, the cumulative gain or loss will not be reclassified to profit or loss; instead, it will be transferred to retained earnings.

2) Equity instruments

Debt and equity instruments issued by the Company are classified separately as financial liabilities or equity in accordance with the substance of contractual arrangements and the definitions of a financial liability and an equity instrument.

The equity instrument issued by the Company shall be recognized by the payment for acquisition net of the direct cost of issuance.

The repurchase of equity instruments issued by the Company is recognized in equity as a deduction. The purchase, sale, issuance, or write-off of the Company's own equity instruments is not recognized in profit or loss.

3) Financial liabilities

(a) Subsequent measurement

All financial liabilities are subsequently measured either at amortized cost using effective interest method, except below situations.

(b) Derecognition of financial liabilities

The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable, including liabilities of any transferred non-cash asset or afforded liabilities, is recognized in profit or loss.

24 -

25 -

l. Revenue recognition

The Company identifies contracts with customers, allocates the transaction price to the performance obligations and recognizes revenue when performance obligations are satisfied.

The Company is principally engaged in appointments and management of contractors for the construction and sales of real estate, and the revenue is recognized when the legal ownership of the real estate is passed to the client. For the signed contract of residence sale, subject to the commercial practice, the real estate has no other use for the Company. As the legal ownership of the real estate is passed to the client, the Company has an enforceable right to the contractual amount and therefore revenue is recognized when the legal ownership of the real estate is passed to the client.

m. Lease

At the inception of a contract, the Company assesses whether the contract is, or contains, a lease.

1) The Company as lessor

Leases are classified as finance leases whenever the terms of a lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

When the Company subleases the right-of-use asset, the classification of the sublease is determined by the right-of-use asset (instead of the underlying asset). However, if the main lease is a short-term lease where the recognition exemption is applicable to the Company, the sublease is classified as an operating lease.

After lease-related incentives are deducted, the rental income from operating lease is recognized on a straight-line basis over the term of the lease. The initial direct costs arising from acquisition of operating leases is added to the carrying amount of the underlying assets; and an expense is recognized for the lease on a straight-line basis over the lease term.

When a lease includes both land and building elements, the Company assesses the classification of each element separately as a financial or an operating lease based on the assessment as to whether substantially all the risks and rewards incidental to ownership of each element have been transferred to the lessee. The lease payments are allocated between the land and the building elements in proportion to the relative fair values of the leasehold interests in the land element and building element of the lease at the inception of a contract. If the allocation of the lease

payments can be made reliably, each element is accounted for separately in accordance with its lease classification. If the lease payments cannot be allocated reliably between the land and building elements, the entire lease is generally classified as a finance lease unless it is clear that both elements are operating leases; in which case, the entire lease is classified as an operating lease.

2) The Company as lessee

The Company recognizes right-of-use assets and lease liabilities for all leases at the commencement date of a lease, except for short-term leases and low-value asset leases accounted for applying a recognition exemption where lease payments are recognized as expenses on a straight-line basis over the lease terms.

Right-of-use assets are measured initially at cost, which comprises the initial measurement of lease liabilities, the lease payments paid before the lease start date less the lease incentives received, the initial direct cost, and the estimated cost of restoring underlying assets. Subsequent measurement is calculated as cost less accumulated depreciation and accumulated impairment loss and adjusted for changes in lease liabilities as a result of remeasurement. Right-of-use assets are presented on a separate line in the parent company only balance sheets.

Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms.

Lease liabilities are initially measured at the present value of the lease payments, which comprise fixed payments and payments of penalties for terminating the lease reflected during the lease term less lease incentives received. The lease payments are discounted using the interest rate implicit in a lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses the lessee's incremental borrowing rate.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in future lease payments resulting from a change in a lease term, the Company remeasures the lease liabilities with a corresponding adjustment to the right-of-use assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. Lease liabilities are presented on a separate line item in the parent company only balance sheets.

26 -

n. Borrowing costs

Borrowing costs directly attributable to an acquisition, construction or production of qualifying assets are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.

Other than that which is stated above, all other borrowing costs are recognized in profit or loss in the period in which they are incurred.

o. Employee benefits

1) Short-term employee benefits expense

Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for service rendered by employees.

2) Post-Retirement Benefits

Payments of defined contribution retirement benefit plans are recognized as an expense when the employees have rendered service entitling them to the contribution.

p. Income tax

Income tax expense is the sum of current income tax and deferred income tax.

1) Current tax

According to the Income Tax Law of the ROC, an additional income tax on unappropriated earnings was surcharged in the year approved by the shareholders' meeting.

Adjustments of prior years' tax liabilities are added to or deducted from the current year's tax provision.

2) Deferred income tax

Deferred income tax is calculated on temporary differences between the carrying amounts of the recorded assets and liabilities and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities are generally recognized for all taxable temporary differences while deferred tax assets are recognized as it is very likely that taxable profits will be available against tax credits which those deductible temporary differences can be utilized.

27 -

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries, except where the Company is able to control the timing of the reversal of the temporary difference and it is very likely that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investment and equity are only recognized to the extent that it is very likely that there will be sufficient taxable profit against which to utilize the benefit of the temporary differences that are expected to reverse in the foreseeable future.

The carrying amount of deferred tax asset is reviewed on each date of balance sheets and it is reduced to the extent that it is no longer very likely that sufficient taxable profits will be available to allow all or part of the deferred tax asset to be recovered. The deferred tax assets not originally recognized are also reviewed on each date of balance sheets, and their carrying amount is recognized to the extent that it is very likely that sufficient taxable profits will be available to allow all or part of the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year in which the liability is settled or the asset is realized, and this tax rates is based on the tax rates and tax laws that have been enacted or substantively enacted on the date of balance sheet. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects to recover or settle the carrying amount of its assets and liabilities on the date of balance sheet.

3) Current and deferred income tax

Current and deferred income taxes are recognized in profit or loss, unless when they relate to items that are recognized in other comprehensive income or directly recorded in equity, the current and deferred income tax are separately recognized in other comprehensive income or directly recorded in equity.

Primary Sources of Uncertainties in Major Accounting Judgments, Estimates, and Assumptions

In the application of the Company's accounting policies, the management is required to make judgments, estimates and assumptions based on historical experience and other factors that are considered to be relevant for the items that are not readily apparent from other sources. Actual results may differ from these estimates.

28 -

The estimates and underlying assumptions are reviewed by management on an ongoing basis as the Company develops critical accounting estimates.

Key Sources of Estimation and Assumption Uncertainty

Estimated impairment loss of inventory

The Company regularly assesses the carrying amounts of the inventories to determine, in accordance with the accounting policy, that the inventories are stated at the lower of cost or net realizable value. The Company estimates the net realizable value based on the most recent average selling prices of similar inventories and its historical experiences. Changes in the net realizable value will increase or decrease the amount of the Company's inventories.

6. Cash and Cash Equivalents

	December 31, 2025	December 31, 2024
Cash on hand and working capital	$ 779	$ 1,044
Bank checks and demand deposits	60,514	123,298
Bank time deposits with original maturity date within 3 months
Fixed-term deposits	-	750,000
	$ 61,293	$874,342

The market interest rate intervals of bank deposits on the balance sheet date are as follows:

	December 31, 2025	December 31, 2024
Bank deposits	0.705%	0.705%
Bank time deposits	-	1.46%~1.70%

7. Notes Receivable, Trade Receivables, Trade Receivables – Related Parties, Other Receivables, and Other Receivables – Related Parties

	December 31, 2025	December 31, 2024
Measured at amortized cost
Notes receivable	$ 145	$ 136
Installment notes receivable	-	592
	$ 145	$ 728
Trade receivables	$ 5,134	$ 5,695
Trade receivables from related parties	1,400	1,400
	$ 6,534	$ 7,095
Other receivables	$ 213	$ 6,053
Other receivables - related party	800,043	1,654,943
	$ 800,256	$ 1,660,996

a. Notes and trade receivable

The Company mainly engaged in appointments of construction contractors to build public housing developments for leasing and selling. As a result, the trade receivables of the Company arose from the purchase of building and land sold by the Company's clients and the collection terms of the receivables are in accordance with the sales contracts. In the case of trade receivables arising from the lack of loan facilities from clients, the Company may, after assessing their credit status and repayment ability, collect the amounts by installment of bills receivable based on agreed terms.

In addition to trade receivables of real estate, the Company has trade receivables arising from rental with lease guarantee deposits received in advance. In assessing the recoverability of trade receivables, the Company considers any change in the credit quality of the trade receivables from the original credit date to the balance sheet date and estimates the irrecoverable amounts by reference to past default records and the current financial condition of the clients and industrial economic conditions. The lease guarantee deposits received by the Company at the balance sheet date are sufficient to cover potential default losses.

The Company applies the simplified approach of IFRS 9 and recognizes allowance for uncollectible accounts for trade receivables as lifetime expected credit losses for the duration of contract. The lifetime expected credit loss is determined the provision matrix which refers to past default records and the current financial condition of the clients and industrial economic conditions. Due to the historical experience of credit losses of the Company, there is no significant difference in the loss patterns of different client's groups. Therefore, the provision matrix does not further distinguish the customer base, and only sets the expected credit loss rate based on the overdue days of trade receivables.

The Company writes off trade receivables when there is information indicating that the debtor is experiencing in severe financial difficulty and there is no realistic prospect of recovery. The Company continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, they are recognized in profit or loss.

The Company's loss allowance for trade receivables based on the provision matrix were as follows:

30 -

December 31, 2025

	Not overdue	Due over 1 ~ 365 days	Due over 365 days	Total
Expected credit loss rate	-	-	100%
Total carrying amount	$ 6,534	$ -	$ -	$ 6,534
Allowance for loss (lifetime expected credit losses)	-	-	-	-
Costs after amortization	$ 6,534	$ -	$ -	$ 6,534

December 31, 2024

	Not overdue	Due over 1 ~ 365 days	Due over 365 days	Total
Expected credit loss rate	-	-	100%
Total carrying amount	$ 7,095	$ -	$ -	$ 7,095
Allowance for loss (lifetime expected credit losses)	-	-	-	-
Costs after amortization	$ 7,095	$ -	$ -	$ 7,095

b. Other receivables

The Company's loss allowance for other receivable were as follows:

December 31, 2025

	Not overdue	Due over 1 ~ 365 days	Due over 365 days	Total
Expected credit loss rate	-	-	100%
Total carrying amount	$ 800,256	$ -	$ -	$ 800,256
Allowance for loss (lifetime expected credit losses)	-	-	-	-
Costs after amortization	$ 800,256	$ -	$ -	$ 800,256

December 31, 2024

	Not overdue	Due over 1 ~ 365 days	Due over 365 days	Total
Expected credit loss rate	-	-	100%
Total carrying amount	$1,660,996	$ -	$ -	$1,660,996
Allowance for loss (lifetime expected credit losses)	-	-	-	-
Costs after amortization	$1,660,996	$ -	$ -	$1,660,996

8. Inventories

	December 31, 2025	December 31, 2024
Real estate under development	$ 429,978	$ 1,616,769
Real estate held for development	4,316,556	4,249,708
Building and land held for sale	4,277,949	941,781
	$ 9,024,483	$ 6,808,258

In April 2025, the Company transferred Xizhi Li Garden and Hung Ching Qing Yun for leasing purposes and reclassified them from properties held for sale to investment property. Please refer to Note 12.

As of December 31, 2025 and 2024, inventories of NT$6,034,082 thousand and NT$6,537,502 thousand, respectively, are expected to be recovered after more than 12 months. The relevant amounts of operating cost and inventory were as follows:

	2025	2024
Cost of Goods Sold	$ 83,172	$ 5,670,833
The abovementioned cost of goods sold includes
Inventory write-down losses (reversal of write-down gains)	($ 55,266)	$ 135,170

The reversal of inventory write-down losses (write-down gains) for the year 2025 arose from the reversal of prior write-downs on the ASE and Mudan development projects, as well as the recognition of inventory write-down losses for the Banqiao Puqian Section and Hsinchu Lianhua Section projects.

The inventory impairment loss for 2024 was recognized for the Hsinchu Lianhua section of land and was offset by the reversal of the impairment loss related to the Mudan construction project.

Please refer to Note 25 for the amount of inventory pledged by the Company as collateral against its secured borrowings.

9. Financial Assets Measured at Fair Value through Other Comprehensive Income - Non-current

Investments in equity instruments at FVTOCI

	December 31, 2025	December 31, 2024
Non-current
Domestic investment
Listed Shares	$ 11,054,753	$ 7,149,182

The Company invested in equity instruments pursuant to its medium-term and long-term strategies for the purpose of making a profit; thus, the Company elected to designate these investments to be measured at FVTOCI.

Please refer to Note 25 for information about investments in equity instruments at FVTOCI pledged as collateral.

10. Investments Accounted for Using Equity Method

	December 31, 2025	December 31, 2024
Investment in subsidiaries
Luchu Development Corporation	$ 2,683,146	$ 2,634,667
Hung Ching Kuan Co., Ltd.	466,689	504,362
Fuhua engineering Co., Ltd.	468,401	624,397
Hung Ching New Co., Ltd.	59,575	54,398
Hung Ching Co., Limited	72,960	75,394
	December 31, 2025	December 31, 2024
Superb First Co.,Ltd.	$ 82,381	$ 73,242
ASE WeMall M&C Co.	4,042	3,382
Total	3,837,194	3,969,842
Investments in associates
Ding Gu Properties Co., Ltd.	1,426,093	684,993
	$ 5,263,287	$ 4,654,835

The percentages of ownership interests and voting rights in subsidiaries and affiliates as of the balance sheet date were as follows:

	December 31, 2025	December 31, 2024
Subsidiaries
Luchu Development Corporation	96.5%	96.5%
Hung Ching Kuan Co., Ltd.	63.5%	63.5%
Fuhua engineering Co., Ltd.	100%	100%
Hung Ching Co., Limited	100%	100%
Hung Ching New Co., Ltd.	100%	100%
Superb First Co., Ltd.	100%	100%
ASE WeMall M&C Co.	100%	100%
Affiliates
Ding Gu Properties Co., Ltd.	24.0%	24.0%

The share of profit or loss and other comprehensive loss of the subsidiaries accounted for using the equity method for the years ended December 31, 2025 and 2024 was calculated based on the financial statements of subsidiaries audited by the certified public accountant for the same period.

The Company participated in the cash capital increase of Ding Gu Properties in 2025. For detailed transaction information and explanations, please refer to Note 24.

Information of associates not individually material is summarized as follows:

	2025	2024
The Company's share
Net loss for the year	$169,900	$113,998
Other comprehensive income/(loss)	—	—
Total comprehensive income/(loss)	$169,900	$113,998

11. Property, Plant and Equipment

	Land	Buildings and Property	Other Equipment	Total
Cost
Balance as of January 1, 2024	$ 330,496	$ 190,356	$ 9,109	$ 529,961
Balance as of December 31, 2024	$ 330,496	$ 190,356	$ 9,109	$ 529,961
Accumulated depreciation and impairment
Balance as of January 1, 2024	$ -	$ 123,529	$ 7,220	$ 130,749
Depreciation expenses	-	6,727	758	7,485
Balance as of December 31, 2024	$ -	$ 130,256	$ 7,978	$ 138,234
Net as of December 31, 2024	$ 330,496	$ 60,100	$ 1,131	$ 391,727
Cost
Balance as of January 1, 2025	$ 330,496	$ 190,356	$ 9,109	$ 529,961
Addition	-	-	92	92
Disposal	-	-	( 1,671 )	( 1,671 )
Balance as of December 31, 2025	$ 330,496	$ 190,356	$ 7,530	$ 531,632
Accumulated depreciation and impairment
Balance as of January 1, 2025	$ -	$ 130,256	$ 7,978	$ 138,234
Depreciation expenses	-	3,371	379	3,750
Disposal	-	-	( 1,671 )	( 1,671 )
Balance as of December 31, 2025	$ -	$ 133,627	$ 6,686	$ 140,313
Net as of December 31, 2025	$ 330,496	$ 56,729	$ 844	$ 388,069

Property, plant and equipment of the Company are depreciated by straight-light method using the estimated useful lives as follows:

Buildings and Property 31 to 60 years
Other Equipment 5 to 10 years

Please refer to Note 25 for information about the amount of property, plant and equipment pledged by the Company as collateral for borrowings.

12. Investment Properties

	Land	Buildings and Property	Total
Cost
Balance as of January 1, 2024	$ 855,505	$ 3,107,009	$ 3,962,514
Addition	-	2,567	2,567
Disposal	-	( 4,235 )	( 4,235 )
Balance as of December 31, 2024	$ 855,505	$ 3,105,341	$ 3,960,846
Accumulated depreciation and impairment
Balance as of January 1, 2024	$ 84,201	$ 805,282	$ 889,483
Depreciation expenses	-	94,259	94,259
Balance as of December 31, 2024	$ 84,201	$ 899,541	$ 983,742
Net as of December 31, 2024	$ 771,304	$ 2,205,800	$ 2,977,104
Cost
Balance as of January 1, 2025	$ 855,505	$ 3,105,341	$ 3,960,846
Reclassification from inventories	43,913	65,216	109,129
Balance as of December 31, 2025	$ 899,418	$ 3,170,557	$ 4,069,975
Accumulated depreciation and impairment
Balance as of January 1, 2025	$ 84,201	$ 899,541	$ 983,742
Depreciation expenses	-	107,607	107,607
Reversal of impairment losses and reclassification	979	( 46,889 )	( 45,910 )
Balance as of December 31, 2025	$ 85,180	$ 960,259	$ 1,045,439
Net as of December 31, 2025	$ 814,238	$ 2,210,298	$ 3,024,536

The Company's investment properties consist of the Tucheng ASE WeMall and Hotel J Metropolis.

During 2025, the Company reversed impairment losses recognized for the Zhongli wastewater treatment plant under investment properties. In 2024, there were no other significant additions, disposals, or impairment events.

Investment properties of the Company are depreciated by straight-light method using the estimated useful lives as follows:

Buildings and Property
49 to 60 years

The fair value of the investment property is derived by reference to appraisal report evaluated by appraisal company of non-related party and to the actual price registration of in the adjacent area by the management. Evaluation of fair value is shown below:

Fair value	December 31, 2025	December 31, 2024
	$3,564,879	$6,059,257

The operating lease is to lease merchandise inventory and investment property owned by the Company leases with lease terms of 1 to 20 years. The lessee does not have bargain purchase options to acquire the leasehold buildings at the end of the lease terms.

As of December 31, 2025 and 2024, the guarantee deposits received by the Company in accordance with operating lease agreements amounted to NT$23,520 thousand and NT$23,203 thousand, respectively.

The total future lease payments to be received of operating lease commitments (excluding variable lease payments) are as follows:

	December 31, 2025	December 31, 2024
1st Year	$ 100,304	$ 103,538
2nd Year	63,055	58,038
3rd Year	47,502	47,563
4th Year	29,021	35,400
5th Year	23,631	26,801
Over 5 years	93,372	119,486
	$ 356,885	$ 390,826

The Company held freehold interests in all of its investment properties. Please refer to Note 25 for the amount of investment properties pledged by the Company as collateral for borrowings.

36 -

37 -

13. Other Assets

	December 31, 2025	December 31, 2024
Current
Prepayments
Tax overpaid retained for offsetting the future tax payable	$ 53,688	$ 27,987
Prepayments for construction and purchases (Note 25)	2,481,403	2,441,123
Prepaid expenses	2,010	2,480
	$ 2,537,101	$ 2,471,590

14. Borrowings

a. Short-term borrowings

	December 31, 2025	December 31, 2024
Bank credit loans	$ 600,000	$ 460,000
Bank secured loan (Note 25)	2,260,000	4,930,000
	$ 2,860,000	$ 5,390,000
Interest rate of bank credit loans	2.20%-2.38%	2.23%-2.38%
Interest rate of bank secured loans	2.18%-2.96%	2.17%-2.96%

b. Short-term bills payable

	December 31, 2025	December 31, 2024
Commercial paper payable (Note 25)	$ 5,278,500	$ 4,502,500
Less: discount on short-term bills payable	12,029	11,415
	$ 5,266,471	$ 4,491,085
Interest rate	2.478%-3.068%	2.618%-2.978%

c. Long-term borrowings

	December 31, 2025	December 31, 2024
Bank loans
Secured loan (Note 25)
Bank of Taiwan (1)	$ 1,331,806	$ 1,492,415
Bank of Taiwan (2)	1,500,000	410,000
KGI Bank (3)	200,000	200,000
Mega Bank (4)	1,850,000	200,000
	4,881,806	2,102,415

(Continued on the next page)

(Continued from the previous page)

	December 31, 2025	December 31, 2024
Less: Current portion matured in one year	1,684,864	360,609
Subtotal	3,196,942	1,741,806
Long term commercial paper payable (5)	204,000	-
Less: long term commercial paper payable	297	-
Subtotal	203,703	-
Long-term borrowings	$ 3,400,645	$ 1,741,806
Interest rate	2.62%-3.05%	2.62%-2.97%

1) The maturity date of the Company's loan from Bank of Taiwan is May 16, 2033 with repayment method of interests paid monthly and principal paid by installments starting the 3rd year, and with Tucheng mall as collateral.
2) The maturity date of the loan with the Bank of Taiwan is May 2, 2026, and the repayment method is monthly with principal due on maturity. The guarantee is provided by the Second Factory.
3) The maturity date of the Company's loan from KGI Bank is August 28, 2028 with repayment method of interests paid monthly and principal paid by the date of maturity, and the collateral is Lianhua Section land in Hsinchu.
4) The Company's loan with Mega International Commercial Bank matures on December 26, 2028. The repayment terms require that the first installment of principal be repaid six months from the initial drawdown date, with subsequent repayments made every six months thereafter. For the first to fifth installments, principal of NT$10,000 thousand shall be repaid each period, and the remaining outstanding principal shall be fully settled in the sixth installment. The loan is secured by Luchu shares.
5) The Company's loan with DBS Bank matures on December 31, 2026 and is issued on a revolving basis in accordance with the terms of the agreement. The loan is secured by the Kaohsiung K28 factory building.

15. Trade Payables and Trade Payables to Related Parties

Trade payables classified as construction retainage payable for construction contracts were NT$445,367 thousand and NT$453,324 thousand as of December 31, 2025 and 2024. Construction retainage received, which is interest free, will be paid for each construction

contract at the end of the construction retainage period. This retainage period is the Company's normal operating cycle, which normally exceeds one year.

16. Post-retirement Benefit Plans

The Company adopted a pension plan under the Labor Pension Act, which is a government-managed defined contribution plan. The Company has made monthly contributions equal to 6% of each employee's monthly salary to employees' individual pension accounts of Bureau of Labor Insurance.

17. Equity

a. Share capital

Ordinary shares

	December 31, 2025	December 31, 2024
Authorized shares (In Thousand Shares)	540,306	540,306
Authorized share capital	$ 5,403,060	$ 5,403,060
Issued and fully paid shares (In Thousand Shares)	270,306	270,306
Issued share capital	$ 2,703,060	$ 2,703,060

The par value of the issued ordinary shares is $10 per share. Each share is entitled to one voting right and right of receiving dividend.

b. Capital Surplus

	December 31, 2025	December 31, 2024
To offset a deficit, to distribute as cash dividends or stock dividends
Additional paid-in capital	$ 148,999	$ 148,999
Treasury stock transaction	239,636	222,541
	$ 388,635	$ 371,540

The abovementioned capital surplus may be used to offset a deficit or to be distributed as cash dividends or stock dividends; however, the stock dividends have a limitation up to a certain percentage of the paid-in capital per year.

c. Retained earnings and dividend policy

According to the Company's Articles of Incorporation of the earnings distribution policy, the Company shall make appropriations from its net income (less any deficit), if any, to pay the taxes in comply with the laws, offset its accumulated deficit, set aside a legal reserve at 10% of the remaining earnings while no more set-aside if the legal reserve is up to the Company's paid-in capital, and then set aside or reverse a special reserve in

accordance with the relevant laws or regulations. Of the remainder, together with any unappropriated earnings of prior years, shall be proposed by the Board of Directors as a plan for the distribution of the remaining undistributed earnings, and the shareholders shall resolve such plan in the shareholders' meeting for distribution of dividends to shareholders. For the policies on employees' compensation and remuneration of directors, which is stipulated in the Company's Articles of Incorporation, please refer to Note 19(8).

The Company's current industrial development is in a mature period while the business development is still at a growth stage with investment plans and funding requests in the coming years. Therefore, in addition to the abovementioned policies, the distribution of earnings shall be based on at least 20% by cash dividends and the remainder shall be distributed in the form of stock dividends as distribution of shareholders' dividends and bonuses for the year. However, if the Company obtains sufficient funds from external parties to meet its funding requests for the year, the proportion of cash dividends distributed above shall be increased to 40% on a discretionary basis.

As stated in the preceding paragraph, the Company may determine the most appropriate dividend policy and payment method depending on the actual operation of the year and taking into account the capital budget planning for the subsequent year.

The Company shall set aside a legal reserve until it equals the Company's paid-in capital. Legal reserve may be used to offset deficit. If the company has no deficit and the legal reserve has exceeded 25% of the company's paid-in capital, the excess may be transferred to capital or distributed in cash.

The appropriations of earnings for 2024 and 2023 had been approved in the shareholders' meetings on June 19, 2025 and June 25, 2024, respectively, and they were as follows:

	Appropriation of Earnings		Dividends per share (NT$)
	2024	2023	2024	2023
Legal reserve	$ 127,234	$ 44,624
Legal reserve (reversal)	( 86,759 )	( 60,261 )
Cash dividends	540,612	405,459	$ 2.00	$ 1.50

The Board of Directors of the Company on March 6, 2026 proposed the following appropriation of the 2025 earnings and dividends per share:

The appropriations of earnings for the year ended December 31, 2025 is subject to the resolution of the shareholders in the shareholders' meeting to be held on June 24, 2026.

d. Special reserve

	2025	2024
Balance, beginning of year	$ 274,472	$ 334,733
Reversal of special reserve	( 86,759 )	( 60,261 )
Balance, end of year	$ 187,713	$ 274,472

A special capital reserve shall be provided for the difference between the market price of the Company's shares held by the subsidiaries and the book value in proportion to their shareholdings and may be subsequently reversed as a result of the recovery of the market price.

e. Other equity items

1) Exchange differences on translating the financial statements of foreign operations

	2025	2024
Balance, beginning of year	($ 2,578)	($ 6,505)
Exchange differences on translating the net assets of foreign operations	818	4,909
Related income tax from gain on translating the net assets of foreign operations	( 163)	( 982)
Balance, end of year	($ 1,923)	($ 2,578)

2) Unrealized gain (loss) on financial assets at fair value through other comprehensive income

	2025	2024
Balance, beginning of year	$ 6,273,586	$ 5,100,645
Recognized for the year
Unrealized gain (loss)
Equity
instruments	3,905,571	1,191,530
Shares of subsidiaries recognized under the equity method	48,047	( 18,589 )
Balance, end of year	$ 10,227,204	$ 6,273,586

f. Treasury Shares

(Unit: In Thousand Shares)

Reasons for repurchase	Number of shares, beginning of year	Increase for the year	Decrease for the year	Number of shares, end of year
2025
Shares of the Company held by subsidiaries	8,548	-	-	8,548
2024
Shares of the Company held by subsidiaries	8,548	-	-	8,548

Information on shares of the Company held by subsidiaries on the balance sheet date is as follows:

Name of Subsidiary	Number of shares held (thousand shares)	Carrying amount	Market price
December 31, 2025
Hung Ching New Co., Ltd.	8,548	$ 248,311	$ 248,311
December 31, 2024
Hung Ching New Co., Ltd.	8,548	$ 323,958	$ 323,958

The shares of the Company held by subsidiaries, which are considered as treasury shares, are bestowed shareholders' rights, except for the rights to participate in any share issuance for cash and to vote.

Revenue

Contract balances

	December 31, 2025	December 31, 2024
Notes receivable (Note 7)	$ 145	$ 728
Trade receivables - net (Note 7)	$ 5,134	$ 5,695
Trade receivables from related parties (Note 7)	$ 1,400	$ 1,400
Contract liabilities – current Building and land for sale	$ 1,071	$ 28,944

Detailed information on the revenue is described in Note 30 of the 2025 Consolidated Financial Statements.

In May 2025, at the customer's request, the Company replaced the unit in a real estate sale. Accordingly, the Company recognized sales returns of NT$77,084 thousand in the second quarter of 2025. A new purchase and sale agreement for the replacement unit has been executed, and the transfer of ownership and handover were completed in August 2025.

19. Net Income from Continuing Operation

a. Interest income

	2025	2024
Interest income of bank deposit	$ 6,688	$ 6,589
Interest income from fund loans (Note 24)	36,938	38,339
	$ 43,626	$ 44,928

b. Other income

	2025	2024
Dividend income	$ 233,722	$ 229,581
Others	21,041	10,702
	$ 254,763	$ 240,283

c. Other gains and losses

	2025	2024
Reversal of impairment losses on assets	$ 45,910	$ -
Other loss	( 640)	( 50)
	$ 45,270	($ 50)

d. Finance costs

	2025	2024
Interest on bank loans	$ 335,936	$ 358,531
Interest on loans from related parties (Note 24)	-	29,960
Less: Amounts included in the cost of required assets	38,092	85,233
	$ 297,844	$ 303,258
Interest rate on interest capitalization	2.45%-2.76%	2.34%-2.93%

e. Depreciation and amortization

	2025	2024
Property, Plant and Equipment	$ 3,750	$ 7,485
Investment Properties	107,607	94,259
Long-term prepayment expenses
(recorded as other non-current assets)	2,656	2,997
Intangible assets	106	106
Total	$ 114,119	$ 104,847
Depreciation expenses summarized by function
Operating costs	$ 107,607	$ 94,259
Operating expenses	3,750	7,485
	$ 111,357	$ 101,744
Amortization expenses summarized by function
Operating expenses - administrative expenses	$ 2,762	$ 3,103

f. Direct operating expenses of investment properties

	2025	2024
Direct operating expenses of investment properties generating rental revenue	$ 118,362	$ 105,602

g. Employee Benefits Expenses

	2025	2024
Short-term employee benefits expense	$ 53,368	$ 79,883
Post-Retirement Benefits
Defined contribution plans	1,650	1,649
Other employee benefits	6,071	8,878
Total employee benefit expenses	$ 61,089	$ 90,410
Summarized by function
Operating costs	$ -	$ -
Operating expenses	61,089	90,410
	$ 61,089	$ 90,410

h. Employees' compensation and remuneration of directors

The Company accrued employees' compensation and remuneration of directors at the rates of 1% to 7% and no higher than 3% for employees' compensation and for remuneration of directors of net profit before tax, respectively. The employees'

compensation and remuneration of directors for the years ended December 31, 2025 and 2024, which were approved by the Company's Board of Directors on March 6, 2026 and March 7, 2025, respectively, were as follows:

Accrual rates

	2025	2024
Employees' compensation	4.00%	3.00%
Remuneration of directors	2.00%	1.50%

Amount

	2025		2024
	Cash	Stock	Cash	Stock
Employees' compensation	$ 11,779	$ -	$ 45,108	$ -
Remuneration of directors	5,890	-	22,554	-

If there is a change in the amounts after the parent company only financial statements are authorized for issue, the differences are recorded as a change in the accounting estimate and adjusted in the accounts in the following year.

There was no difference between the actual amount paid of employees' compensation and remuneration of directors and the amount recognized in the parent company only financial statements for the years ended December 31, 2024 and 2023.

Information on the employees' compensation and remuneration of directors resolved by the Company's Board of Directors is available at the Market Observation Post System website of the Taiwan Stock Exchange.

20. Income Tax from Continuing Operations

a. Income tax expense recognized in profit and loss account

Major components of income tax expense are as follows:

	2025	2024
Current tax
In respect of the current year	$ -	$ 98,804
Surcharges on unappropriated earnings	34,562	2,821
Land value increment tax	5,780	9,216
Adjustments for prior years	(17,741)	-
	22,601	110,841
Deferred income tax
In respect of the current year	9,522	52,761
Income tax expenses recognized in profit or loss	$ 32,123	$ 163,602

A reconciliation of accounting profit and current income tax expense is as follows:

	2025	2024
Net income from continuing operation	$ 276,810	$ 1,435,946
Income tax expenses from income before tax calculated at the statutory rate	$ 55,362	$ 287,189
Fees that cannot be deducted from taxes	1,939	2,599
Non-taxable income	( 85,686 )	( 166,290 )
Surcharges on unappropriated earnings	34,562	2,821
Land value increment tax	5,780	9,216
Unrecognized deductible temporary differences	37,907	28,067
Income tax expenses from previous years adjusted for the year	( 17,741 )	-
Income tax expenses recognized in profit or loss	$ 32,123	$ 163,602

b. Income tax recognized in other comprehensive income

	2025	2024
Deferred income tax
Recognized for the year
— Translating of foreign operations	$ 163	$ 982
Income tax recognized in other comprehensive income	$ 163	$ 982

c. Deferred tax assets

The movements of deferred tax assets were as follows:

	Balance, beginning of year	Recognized in profit and loss	Recognized in other comprehensive income	Balance, end of year
2025
Deferred tax assets
Property, plant and equipment	$ 12,000	($ 9,522)	$ -	$ 2,478
Investment properties	14,473	-	-	14,473
Exchange differences of foreign operations	643	-	( 163)	480
	$ 27,116	($ 9,522)	($ 163)	$ 17,431

(Continued on the next page)

(Continued from the previous page)

	Balance, beginning of year	Recognized in profit and loss	Recognized in other comprehensive income	Balance, end of year
2024
Deferred tax assets
Loss carryforward	$ 54,289	($ 54,289)	$ -	$ -
Property, plant and equipment	12,242	( 242 )	-	12,000
Investment properties	12,703	1,770	-	14,473
Exchange differences of foreign operations	1,625	-	( 982 )	643
	$ 80,859	($ 52,761)	($ 982 )	$ 27,116

d. Amounts of loss carryforward and deductible temporary differences for which no deferred tax assets have been recognized in the parent company only balance sheet

	December 31, 2025	December 31, 2024
Deductible temporary differences	$ 103,398	$ 61,253

e. Income tax assessments

The Company's annual income tax return of a profit-seeking enterprise have been assessed by the tax authorities through the 2023 annual income tax return of a profit-seeking enterprise.

21. Earnings per Share

Numerator and denominator used in the computation of earnings per share (EPS) are as follows:

	Amount (numerator) after tax	Shares (denominator) (In Thousand Shares)	Earnings per share (NT$) after tax
2025
Basic EPS
Net income to calculate basic EPS	$ 244,687	261,758	$ 0.93
Effect of dilutive potential ordinary share:
Employees' compensation	-	621
Diluted EPS
Net income to calculate diluted EPS	$ 244,687	263,379	$ 0.93

(Continued on the next page)

(Continued from the previous page)

	Amount (numerator) after tax	Shares (denominator) (In Thousand Shares)	Earnings per share (NT$) after tax
2024
Basic EPS
Net income to calculate basic EPS	$ 1,272,344	261,758	$ 4.86
Effect of dilutive potential ordinary share:
Employees' compensation	-	1,331
Diluted EPS
Net income to calculate diluted EPS	$ 1,272,344	263,089	$ 4.84

If the Company offered to settle the employees' compensation in cash or shares, the Company presumes that the entire amount of the compensation would be settled in shares and the resulting potential shares were included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the shareholders resolve the number of shares to be distributed to employees as compensation at their meeting in the following year.

22. Management of Risks in Capital

The Company conducts management of risks in capital to ensure that each entity of the Company would continue as a going concern with the premise of optimizing the balances of debt and equity, and to maximize shareholders' equity. The overall strategy of the Company has no significant change.

The Company's capital structure consists of the Company's net debt (which is borrowings less cash and cash equivalents) and equity attributable to the owners of the Company (which are share capital, capital surplus, retained earnings, and other equity items).

The Company is not subject to any other external capital requirements.

The key management of the Company annually reviews the capital structure of the Company, including the capital costs of various categories and related risks. Based on recommendations of the key management, the Company will balance its overall capital structure through dividends distribution, new stock issuance, shares repurchase, and new debts issuance or old debts repayment, etc.

49 -

23. Financial Instruments

a. Information on Fair value - Financial instruments measured at fair value on a recurring basis

Fair value hierarchy

December 31, 2025

	Level 1	Level 2	Level 3	Total
Financial assets at FVTOCI
Investments in equity instruments
— Domestic listed stock	$11,054,753	$____-	$____-	$11,054,753

December 31, 2024

	Level 1	Level 2	Level 3	Total
Financial assets at FVTOCI
Investments in equity instruments
— Domestic listed stock	$ 7,149,182	$____-	$____-	$ 7,149,182

There was no transfer between Level 1 and Level 2 for the years ended December 31, 2025 and 2024.

b. Categories of financial instruments

	December 31, 2025	December 31, 2024
Financial assets
financial assets at amortized cost (Note 1)	$ 871,753	$ 2,545,871
Financial assets at FVTOCI Investments in equity instruments	11,054,753	7,149,182
Financial liabilities
Measured at amortized cost (Note 2)	14,998,917	13,390,159

Note 1: The balances included financial assets measured at amortized cost which comprise cash and cash equivalents, notes receivable, trade receivables, trade receivables from related parties, other receivables, other receivables - related parties, long-term notes receivable and refundable deposits (recorded in other non-current assets), etc.

Note 2: The balances included financial liabilities measured at amortized cost, including short-term borrowings, short-term notes payable, accounts payable,

accounts payable—related parties, other payables, other payables—related parties, current portion of long-term borrowings, long-term borrowings, and guarantee deposits received.

c. Financial risk management objectives and policies

The Company's major financial instruments include investments in equity instruments, trade receivables, trade payables, short-term bills payable and borrowings. The Company's Finance division provides services to each unit of the business, coordinates access to domestic financial markets, and monitors and manages the financial risks relating to the operations of the Company through internal risk reports that analyze exposures by degree and magnitude of risks. These risks include market risk (including interest rate risk and other price risk), credit risk and liquidity risk.

The Company manages and monitors these exposures to ensure appropriate measures are implemented on a timely and effective manner. Internal auditors review the compliance policies and risk exposure limits on an ongoing basis.

1) Market Risk

As the Company is rarely engaged in foreign currency transactions, exposure to exchange rate risk for fluctuations in market exchange rates is minimal. At this stage, the Company's dedicated unit reviews the assets and liabilities that are affected by exchange rates only on a regular basis.

Therefore, the Company's activities exposed it primarily to the financial risks of changes in interest rates and other price risk.

(a) Interest rate risk

Interest rate risk arises when the Company borrows funds at both fixed and floating rates. The Company manages interest rate risk by maintaining an appropriate mix of fixed and floating interest rates. The Company periodically evaluates interest rate fluctuations to ensure that the most cost-effective hedging strategy is utilized by adjusting the affected positions to be consistent with interest rate perspectives and the established risk appetite.

The carrying amounts of financial assets and financial liabilities of the Company with exposures to interest rate on the balance sheet dates are as follows:

50 -

	December 31, 2025	December 31, 2024
Interest rate risk with fair value
— Financial liabilities	$ 5,266,471	$ 4,491,085
Interest rate risk with cash flow
— Financial assets	860,514	2,492,098
— Financial liabilities	7,945,509	7,492,415

Sensitivity analysis

The Company used the interest rate risk of non-derivatives financial instruments at the balance sheet date as basis. Facing the risk of changes in floating interest rates of financial assets and in market interest rates of financial liabilities, the Company uses 1% increase or decrease in market interest rates as a reasonable risk assessment for reporting changes in interest rates to the management. If the market interest rate had been 1% higher and all other variables were held constant, the Company's income before tax for the years ended December 31, 2025 and 2024 would decrease by NT$70,850 thousand and NT$50,003 thousand, respectively.

(b) Other price risk

The Company was exposed to equity price risk through its investments on equity securities of listed and OTC companies. This equity investment is not held for trading but a strategic investment. The Company does not actively trade these investments. Equity price risk of the Company is mainly concentrated on equity instruments in semiconductor packaging industry of the Taiwan Stock Exchange. Besides, the Company has appointed a dedicated unit to regularly monitor the price risk and assess when it is necessary to increase the risk hedging position.

Sensitivity analysis

If equity prices had been 10% lower, no impact would incur on the Company's pre-tax income for the year ended December 31, 2025 and 2024. The Company's pre-tax other comprehensive income for the years ended December 31, 2025 and 2024 would have decreased by NT$1,105,475 thousand and NT$714,918 thousand, respectively, due to changes in fair value of financial assets at FVTOCI.

2) Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Company. As of the balance sheet date, the Company’s maximum exposure to credit risk due to failure to discharge an obligation by the counterparties arises from the carrying amount of the respective recognized financial assets as stated in the parent company only balance sheet.

The policies adopted by the Company are to trade with reputed counterparties only. If necessary, sufficient collateral must be obtained to reduce the risk of financial losses. The trading counterparties of Company are financial institutions and organizations of company with good credit standing, so no significant credit risk is expected to incur.

To reduce credit risk, the management of the Company has delegated a dedicated team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is properly taken to recover overdue debts. Moreover, the Company reviews the recoverable amount of each individual trade receivables on the balance sheet date to ensure that adequate allowance is made for possible irrecoverable amounts. In this regard, the management believes that the Company’s credit risk has been significantly reduced. Trade receivables from customers are diversified because the Company has transactions with different customers and does not have any concentration of credit risk. The Company evaluates the financial position of its trade receivables customers on an ongoing basis.

3) Liquidity risk

The ultimate responsibility for liquidity risk management rests with the Board of Directors. The Company has put in place an appropriate liquidity risk management framework to address short, medium and long-term funding and liquidity management needs. The Company manages liquidity risk by maintaining adequate banking facilities and retaining the flexibility to raise funds in the capital markets, monitoring projected and actual cash flows on an ongoing basis and planning for the settlement of liabilities with financial assets of similar maturity.

(a) Table of liquidity risk

The following tables detail the analysis of the Company’s remaining contractual maturities for its non-derivative financial liabilities with agreed

52 -

repayment periods. The tables was drawn up based on the undiscounted cash flows (including principal and estimated interest) of financial liabilities from the earliest date on which the Company may be required to pay.

	December 31, 2025
	Within 6 months	6 months ~ 1 year	Above 1 year	Total
Non-derivative financial liabilities
Short-term borrowings	$ 2,090,110	$ 793,648	$ -	$ 2,883,758
Short-term bills payable	5,278,500	-	-	5,278,500
Trade Payables	99,812	-	-	99,812
Trade payables to related parties	1,558,596	-	-	1,558,596
Other payables	46,525	54,612	-	101,137
Other payables - related parties	3,822	-	-	3,822
Long-term borrowings	1,855,491	138,574	3,532,598	5,526,663
Guarantee deposits received	50	-	23,520	23,570
	$ 10,932,906	$ 986,834	$ 3,556,118	$ 15,475,858
	December 31, 2024
---	---	---	---	---
	Within 6 months	6 months ~ 1 year	Above 1 year	Total
Non-derivative financial liabilities
Short-term borrowings	$ 2,963,052	$ 2,528,381	$ -	$ 5,491,433
Short-term bills payable	4,502,500	-	-	4,502,500
Trade Payables	56,671	-	-	56,671
Trade payables to related parties	1,156,851	-	-	1,156,851
Other payables	22,700	144,609	1,425	168,734
Long-term borrowings	107,564	306,955	2,034,546	2,449,065
Guarantee deposits received	1,200	-	23,203	24,403
	$ 8,810,538	$ 2,979,945	$ 2,059,174	$ 13,849,657

(b) Financing facilities

The bank loans are a significant source of liquidity for the Company. As of December 31, 2025 and 2024, the Company's amount of unused bank financing facilities amounted to NT$3,958,000 thousand and NT$4,119,000 thousand, respectively.

Transactions with Related Parties

Except for those disclosed in other notes, the material transactions between the Company and other related parties are as follows.

a. Names and relationships of related parties

Name of related party	Relationship with the Company
Fuhua engineering Co., Ltd.	Subsidiaries
Hung Ching Kuan Co., Ltd.	Subsidiaries
Hung Ching New Co., Ltd.	Subsidiaries
ASE WeMall M&C Co.	Subsidiaries
Luchu Development Corporation	Subsidiaries

(Continued on the next page)

(Continued from the previous page)

Name of related party	Relationship with the Company
Advanced Semiconductor Engineering, Inc. and its subsidiaries	Investor having significant influence
Jason C.S. Chang	Investor having significant influence
Richard H.P. Chang	Investor having significant influence
Ding Gu Properties Co., Ltd.	Affiliates
Wealthy Joy Co., Ltd., Taiwan Branch (British Virgin Islands) (Wealthy Joy)	Substantial related party
ASE Test, Inc.	Substantial related party
Baiji Investment Co., Ltd.	Substantial related party
Wanyu Investment Co., Ltd.	Substantial related party
ASE Environmental Protection and Sustainability Foundation	Substantial related party

b. Operating revenue

Item	Category and name of related party	2025
Sales revenue of building and land	Investor having significant influence
Advanced Semiconductor Engineering, Inc.	$ -	$ 5,263,000
Rental revenue	Investor having significant influence
Advanced Semiconductor Engineering, Inc.
Affiliates
Ding Gu Properties Co., Ltd.
Substantial related party
Wealthy Joy
Baiji
Investment Co., Ltd.
Wanyu
Investment Co., Ltd.	$ 10,017
34
1,371
34
34	$ 8,571
34
1,371
34
34

(Continued on the next page)

(Continued from the previous page)

Item	Category and name of related party	2025	2024
Subsidiaries
	Hung Ching	57	57
	Kuan Co., Ltd.
	Fuhua	57	57
	engineering Co., Ltd.
	Hung Ching	57	57
	New Co., Ltd.
	ASE WeMall	50	50
	M&C Co.
	Luchu	57	57
	Development Corporation
		$ 11,768	$ 10,322

The Company and its subsidiaries' transaction terms for related parties are comparable with those for third parties.

The Company has entered into certain lease agreements with significant investors, subsidiaries, and associates, and the rentals are received monthly or annually with rent terms expired one after another before December 31, 2025.

c. Purchase

Category and name of related party	2025	2024
Subsidiaries
Fuhua engineering Co., Ltd.	$ 2,077,641	$ 2,571,302

The Company and its subsidiaries' transaction terms for related parties are comparable with those for third parties.

The Company's real estate under development are mainly contracted with subsidiaries of the Company for construction.

d. Receivables/Payables from related parties

56 -

Item	Category and name of related party	December 31, 2025	December 31, 2024
Trade receivables from related parties	Investor having significant influence
	Advanced Semiconductor Engineering, Inc.	$ 1,400	$ 1,400
Other receivables - related party	Investor having significant influence
	Advanced Semiconductor Engineering, Inc.	$ -	$ 35,981
	Jason C.S. Chang	-	150
	Substantial related party	43	12
		$ 43	$ 36,143
Trade payables to related parties	Subsidiaries
	Fuhua engineering Co., Ltd.	$ 1,558,596	$ 1,156,851

The Company and its subsidiaries' transaction terms for related parties are comparable with those for third parties.

Outstanding receivables from related parties are not guaranteed. As of December 31, 2025 and December 31, 2024, no allowance for doubtful accounts has been made for these receivables.

e. Loans to related parties (recorded as other receivables - related parties)

	December 31, 2025	December 31, 2024
Affiliated enterprise / Ding Gu Properties Co., Ltd.
Principal	$ 800,000	$ 1,618,800
Accrued interest receivable	-	-
	$ 800,000	$ 1,618,800

57 -

Interest income

Category and name of related party	2025	2024
Affiliated enterprise / Ding Gu Properties Co., Ltd.	$ 36,938	$ 38,339

In November 2025 and 2024, the Company, with approval from the board of directors, provided short-term financing to Ding Gu Properties Co., Ltd. at an interest rate comparable to market rates. These loans are expected to be fully recovered within one year, and after evaluation, no expected credit losses have been identified.

f. Borrowings from related parties (recorded as other payables - related parties)

Interest expenses

Category and name of related party	2025	2024
Substantive related party / ASE Test, Inc.	$ -	$ 29,960

In January 2024, the Company borrowed NT$1,500,000 thousand from ASE Test, Inc. as short-term working capital. The borrowing interest rate was comparable to market rates, and the loan was fully repaid in October 2024.

g. Transactions with other related parties

ASE WeMall Management and Consulting Co., Ltd. provided management services to the Company for Tucheng mall, and the management fees recognized and paid for the years ended December 31, 2025 and 2024 were $27,257 thousand and $23,429 thousand, respectively.

h. Endorsements/guarantees

Real estate of subsidiary is provided for the amount of the Company's endorsements/guarantees. Please refer to Appendix 2.

i. Compensation of key management personnel

	2025	2024
Short-term employee benefits expense	$ 62,778	$ 49,600
Post-Retirement Benefits	711	706
	$ 63,489	$ 50,306

The remuneration of directors and other members of key management personnel, as determined by the remuneration committee, was based on the individual performance and market trends.

j. In fiscal years 2025 and 2024, investors with significant influence provided notes and real estate as collateral for the Company's issuance of short-term borrowings and short-term notes.

k. In June 2020, the Company signed a cooperative development agreement with Advanced Semiconductor Engineering, Inc. based on the principles of joint construction. It was agreed that the Company would lease land and independently construct a factory building. Upon completion, Advanced Semiconductor Engineering, Inc. and its affiliated enterprises would have the priority to purchase the building. In June 2024, the Board of Directors, and subsequently the extraordinary shareholders' meeting in September 2024, approved the sale of the factory building. The sale price and profit/loss amounted to NT$5,263,000 thousand and NT$701,886 thousand, respectively, and the transfer was completed in October 2024.

l. The Company and ASE Technology Holding Co., Ltd. entered into an agreement in April 2022 to jointly construct a factory building under a joint construction and unit allocation arrangement, whereby the Company and ASE Technology Holding Co., Ltd. respectively provide funding and factory land. Upon completion of the construction, ASE Technology Holding Co., Ltd. shall have a right of first refusal to acquire the ownership interests allocated to the Company based on the agreed allocation ratio. In September 2025, the parties executed a supplemental agreement to revise the allocation ratio under the joint construction arrangement. In January 2026, the Company's extraordinary shareholders' meeting approved the sale of the factory building. The disposal proceeds and gain on disposal amounted to NT$4,231,000 thousand and NT$833,630 thousand, respectively, and the transfer of ownership was completed in March 2026.

m. The Company and Advanced Semiconductor Engineering, Inc. signed a jointly-constructed with house divided contract in June 2024. It is agreed that the Company and Advanced Semiconductor Engineering, Inc. shall provide funds and part of the plant land respectively, and jointly build the plant in the mode of jointly-constructed with house divided. After the completion of the construction of the plant, Advanced Semiconductor Engineering, Inc. and its subsidiaries have the right of first refusal to

58 -

purchase the property rights acquired by the Company in accordance with the jointly-construction distribution ratio.

n. To address concerns regarding net-zero carbon emissions and the mitigation of climate change impacts, the Company's Board of Directors resolved to donate NT$200 thousand to the ASE Environmental Protection and Sustainability Foundation in November 2025 and 2024 to support the implementation of the Foundation's work plan.

o. In March 2025, the Company entered into a joint development, construction, and sales agreement with Wealthy Joy Co., Ltd., Taiwan Branch (British Virgin Islands) (“Wealthy Joy”) for land parcels Lot 247 and 248, Zhouji Section, Beitun District, Taichung City. Under the agreement, both parties shall contribute construction funding and bear related costs based on their respective landholding proportions (50% each) to jointly complete the development. In the same month, the Company’s subsidiary, Fuhua Engineering Co., Ltd., also entered into a construction contract with Wealthy Joy for the aforementioned project.

p. On August 8, 2025, the Company’s Board of Directors resolved to participate in the cash capital increase of Ding Gu Properties Co., Ltd. The Company subscribed for 57,120 thousand shares at NT$10 per share in proportion to its existing shareholding, and offset the subscription payment with part of its receivables from Ding Gu Properties amounting to NT$571,200 thousand. The capital increase record date was set on September 30, 2025, and the registration of the capital increase was completed on December 24, 2025.

q. On September 25, 2025, the Board of Directors of the Company’s subsidiary, Fuhua Engineering Co., Ltd., resolved to undertake the construction of a new factory building for ASE Technology Holding Co., Ltd., with a contract value of NT$4,208,400 thousand.

r. In January 2026, the Company’s extraordinary shareholders’ meeting approved the execution of a joint construction and unit allocation agreement with ASE Technology Holding Co., Ltd.. Under the agreement, the Company and ASE Technology Holding Co., Ltd. shall respectively provide funding and lease the factory land to jointly construct the factory building under a joint construction arrangement. The agreed allocation of rights and interests in the joint development is 97% for the Company and 3% for ASE Technology Holding Co., Ltd.

Pledged Assets

The following assets of the Company, listed by net carrying amount, were provided to banks as collateral for short-term borrowings, short-term bills payable - net, long-term borrowings - current portion, and long-term borrowings.

59 -

	December 31, 2025	December 31, 2024
Inventories	$ 8,249,801	$ 6,105,122
Financial Assets Measured at Fair Value through Other Comprehensive Income - Non-current	10,899,255	7,048,620
Property, Plant and Equipment	356,212	358,907
Investment Properties	2,535,536	2,612,798
Prepayments	525,716	525,716

26. Significant Events after the Balance Sheet Date

On January 14, 2026, the Company’s extraordinary shareholders’ meeting approved the sale of the factory building and the execution of a joint construction and unit allocation agreement. Please refer to Note 24 for further details.

27. Supplementary Disclosures

a. Information on Significant Transactions:

1) Financing provided to others: Appendix 1.
2) Endorsements/guarantees provided for others: Appendix 2.
3) Material marketable securities held at year end (excluding investment in subsidiaries, associates and joint ventures): Appendix 3.
4) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% or greater of the paid-in capital: Appendix 4.
5) Receivables from related parties amounting to at least NT$100 million or 20% or greater of the paid-in capital: Appendix 5.

b. Information on Invested Companies: Appendix 6.

c. Information on Investments in Mainland China

1) Information on any investee in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, shareholding percentage, net income of investee, investment gain (loss) recognized in the current period, carrying amount of the investment at the end of the period, repatriations of investment income, and limit on the amount of investment in the mainland China area: Appendix 7.
2) Significant transactions directly or indirectly through third region with investee companies in mainland China, and their prices, terms of payment, unrealized gain or loss: None.

(a) Purchase amount and percentage, and the ending balance and percentage of the related payables: None.

(b) Sales amount and percentage, and the ending balance and percentage of the related receivables: None.

(d) Ending balances and the purposes of endorsements/guarantees or collateral provided: None.

(e) The maximum remaining balance, ending balance, range of interest rate and total amount of current interest of financing facilities: None.

(f) Other transactions having a significant impact on profit or loss or financial position for the period, such as provision or receipt of service: None.

61 -

Hung Ching Development & Construction Co., Ltd. and Invested Company

Financing provided to others

January 1 to December 31, 2025

Appendix 1

Unit: NTS thousand

Code	Company Lending Funds	Loan Recipient	Financial Statement Account	Maximum Balance for the Period (Note 1)	Ending balance (Note 2)	Actual Amount Used	Interest Rate Range %	Nature of financing	Transaction Amounts	Reasons for Short-term Financing	Allowance for Bad Debts	Collateral		Financing Limits for Each Borrower (Note 3)	Capital Loan and Maximum Limit (Note 4)
												Name	Value
1	Hung Ching Development & Construction Co., Ltd.	Ding Gu Properties Co., Ltd.	Other receivables - related party	$ 1,618,800	$ 800,000	$ 800,000	2.45%-2.72%	Short-term financing	$ -	Operating requirements	$ -	None	$ -	$ 3,430,120	$ 6,860,240

Note 1: The maximum balance of financing provided to others for the fiscal year.
Note 2: If a public company submits a board of directors' resolution for a loan of funds pursuant to Article 14, Paragraph 1 of the Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies, even though the funds have not yet been appropriated, the amount of the board of directors' resolution should be included in the announcement of the balance of the loan in order to disclose the risk it has assumed. However, if the funds are repaid later, the balance of the loan after the repayment of the funds should be disclosed in order to reflect the adjustment of the risk. If a public company's board of directors resolves to authorize the chairman of the board of directors to make loans or revolving loans within a certain amount and a period of one year in accordance with Article 14, Paragraph 2 of the Regulations, the remaining balance of the announcement should still be reported as the amount of funds loaned as approved by the board of directors, and even though the funds are repaid subsequently, the amount of funds loaned should be reported as the remaining balance of the announcement in consideration of the possibility of loaning the funds again.
Note 3: Lending limits to individual companies or firms: Loans for short-term financing needs shall not exceed twenty percent of the Company's latest financial statement net worth.
Note 4: Where an inter-company or inter-firm short-term financing facility is necessary, provided that such financing amount shall not exceed 40 percent of the lender's net worth.

Hung Ching Development & Construction Co., Ltd. and Invested Company

Endorsements/Guarantees Provided for Others

January 1 to December 31, 2025

Appendix 2
Unit: NT$ thousand

Code	Company Name of Endorsements/Guarantees Provider	Parties Being Endorsed/Guaranteed		Limits on Endorsement/Guarantee Provided for a Single Entity (Note 1)	Maximum Amount Endorsed/Guaranteed in the Current Period	Outstanding Balance of Endorsement/Guarantee - Ending	Actual Amount Used	Amount of Endorsed/Guaranteed Secured with Collateral (Note 2)	Ratio of Accumulated Endorsement/Guarantee to Net Equity in Latest Financial Statements (%)	Maximum Limit on Endorsement/Guarantee Limit (Note 1)	Endorsement/Guarantee Provided by Parent on Behalf of Subsidiaries	Endorsement/Guarantee Provided by Subsidiaries on Behalf of Parent	Endorsement/Guarantee Provided on Behalf of Companies in Mainland China
		Company Name	Relationship
1	Hung Ching Kuan Co., Ltd.	The Company	Subsidiary of the Company	$ 1,470,810	$ 1,000,000	$ 1,000,000	$ 600,000	$ 1,000,000	135.98%	$ 1,470,810	N	Y	N

Note 1: It was calculated based on 200% of the net value of shareholders' equity of Hung Ching Kuan's financial statements audited by the certified public accountant as of December 31, 2025.
Note 2: Real estate provided by Hung Ching Kuan as collateral.

Hung Ching Development & Construction Co., Ltd. and Invested Company

Material marketable securities held at the end of the period

December 31, 2025

Appendix 3

Unit: In Thousands of New Taiwan Dollars or Foreign Currency

Name of Holding Company	Type and Name of Marketable Security	Relationship with the Issuer of Marketable Security	Account Title	Year End				Note
				Shares (In Thousand Shares) / Number of Shares / Unit	Carrying amount	Shareholding Percentage %	Fair value
The Company	Stock
ASE Industrial Holding Co., Ltd.	Major shareholder of the Company	Financial assets at FVTOCI - non-current, net	44,131	$ 11,054,753	0.99	$ 11,054,753	Notes 1 and 2
Hung Ching New Co., Ltd.	Stock
Hung Ching Development & Construction Co., Ltd.	Parent company	Financial assets at FVTOCI - non-current, net	8,548	248,311	3.16	248,311	Note 2
Luchu Development Corporation	Bond
Shin Kong Commercial Bank Co., Ltd., 2024 First Issue
Unsecured Subordinated Financial Bonds, Class A Bonds, G11663	—	Financial asset measured at amortized cost - non-current	-	10,000	-	10,000	—
	Stock
	Powerchip Semiconductor Manufacturing Corporation	—	Financial assets at FVTOCI - non-current, net	1,434	56,727	0.03	56,727	Note 2
	Powerchip Investment Holding Corporation	—	Financial assets at FVTOCI - non-current, net	1,016	46,656	0.07	46,656	Note 3

Note 1: Of which 43,510 thousand shares (net carrying amount of NT$10,899,255 thousand) were provided to financial institutions as financial guarantees.
Note 2: Market price was calculated based on the closing price as of December 31, 2025.
Note 3: Fair value measurement is measured on the asset-based approach.

Hung Ching Development & Construction Co., Ltd. and Invested Company
Total purchases from or sales to related parties amounting to at least NT$100 million or 20% or greater of the paid-in capital
January 1 to December 31, 2025
Appendix 4
Unit: NT$ thousand

Buyer/Seller	Counterparty	Relationship	Transaction Details				Terms and Reasons of Abnormal Transaction		Notes/Trade Receivable (Payable)		Note
			Purchase/Sales	Amount	% to Total Purchases or Sales	Payment Terms	Unit Price	Payment Terms	Balance	% to Total Notes/Trade Receivable (Payable)
The Company	Fuhua engineering Co., Ltd.	Subsidiaries	Purchase	$ 2,077,641	93.99%	In comply with the terms of contracts	$ -	—	($ 1,558,596)	93.90%	Notes 1 and 2
Fuhua engineering Co., Ltd.	The Company	Parent company	Sales	( 1,741,354 )	( 99.46%)	In comply with the terms of contracts	-	—	1,558,596	100.00%	Notes 1 and 2

Note 1: Payment for construction.
Note 2: The difference between the purchases and sales of Fuhua engineering and the Company was due to the recognition of related revenue and cost by Fuhua engineering under the percentage of completion method.

65 -

Hung Ching Development & Construction Co., Ltd. and Invested Company
Receivables from related parties amounting to at least NT$100 million or 20% or greater of the paid-in capital
December 31, 2025

Appendix 5

Unit: NT$ thousand

Company Recording Receivables	Counterparty	Relationship	Balance of Receivables from Related Parties	Turnover Rate	Overdue Balance of Receivables from Related Parties		Amount Received of Receivables from Related Parties after the Balance Sheet Date	Allowance for Bad Debts
					Amount	Action Taken
Fuhua engineering Co., Ltd.	The Company	Parent company	$ 1,558,596	Note 1	$ -	—	$ 330,750	$ -

Note 1: In comply with the collection term of the contract. Not applicable.

66 -

Hung Ching Development & Construction Co., Ltd. and Invested Company

Information on Investee Companies, Location, .. etc.

January 1 to December 31, 2025

Appendix 6

Unit: In Thousands of New Taiwan Dollars or Foreign Currency

Name of Investor Company	Name of Investee Company	Location	Main Businesses	Initial Investment Amount		Held at year end			Investee Company's Income in the Current Period	Investment gain (loss) recognized in the current period (Note 1)	Note
				End of the Current Period	End of the Previous Period	Number of Shares (In Thousand Shares)	Ratio %	Carrying amount
The Company	Hung Ching Kuan Co., Ltd.	Taipei City	Leasing of mall and office building	$ 907,441	$ 907,441	82,495	63.46	$ 466,689	($ 59,365)	($ 37,673)
	Fuhua engineering Co., Ltd.	Taipei City	Contractor of construction projects	539,077	539,077	65,000	100.00	468,401	169,742	( 3,996)	Note 2
	Hung Ching New Co., Ltd.	Taipei City	Retailer of household equipment and supplies	179,996	179,996	46,300	100.00	59,575	14,077	( 3,018)	Note 3
	ASE WeMall M&C Co.	Taipei City	Management consulting business	5,000	5,000	500	100.00	4,042	660	660
	Hung Ching Co., Limited	Hong Kong	General investment	9,912	9,912	1,099	100.00	72,960	( 2,638)	( 2,638)
	Superb First Co., Ltd.	Seychelles	General investment	18,285	18,285	600	100.00	82,381	8,525	8,525
	Luchu Development Corporation	Taipei City	Real estate development	2,649,560	2,649,560	208,853	96.54	2,683,146	448	432
	Ding Gu Properties Co., Ltd.	Taipei City	Management consulting business	1,142,400	571,200	114,240	24.00	1,426,093	707,915	169,900

Note 1: It was calculated based on the financial statements of investees company audited by the certified public accountant for the same period.
Note 2: The investment gains recognized in the current period included unrealized gains of $179,776 thousand and realized gains of $6,038 thousand of upstream transactions.
Note 3: The investment gains and losses recognized in the current period include the Company's cash dividends received by subsidiary amounted to NT$17,095 thousand.
Note 4: Please refer to Appendix 7 for information on investments in Mainland China

Hung Ching Development & Construction Co., Ltd. and Invested Company

Information on Investments in Mainland China

January 1 to December 31, 2025

Appendix 7

Unit: In Thousands of New Taiwan Dollars or Foreign Currency, Unless Otherwise Specified

Investee Companies in Mainland	Main Businesses	Paid-in Capital	Method of Investment	Accumulated Outward Remittance for Investment from Taiwan - Beginning of the Period	Outward/Inward Remittance of Funds in the Current Period		Accumulated Outward Remittance for Investment from Taiwan - End of the Period	Investee Company's Income in the Current Period	Shareholding Percentage of Direct or Indirect Investment	Investment Gain (Loss) Recognized in the Current Period (Note 4)	Carrying Amount of Investment - End of the Period	Accumulated Repatriation of Investment Income by the End of the Current Period
					Outward	Inward
Shanghai Youhong Engineering Technical Consulting Co., Ltd.	Technical consulting services of electronic engineering and architectural engineering	$ 9,912	Note 1	$ 9,912	$ -	$ -	$ 9,912	($ 2,638)	100.0%	($ 2,638)	$ 72,960	$ -
Shanghai Hong Rong Property Management Co., Ltd.	Consulting services of property management and construction and technical consulting services of architectural engineering	2,438	Note 2	-	-	-	-	1,707	100.0%	1,707	29,565	-
Shanghai You Chang Property Management Co., Ltd.	Consulting services of property management and construction and technical consulting services of architectural engineering	18,285	Note 3	18,285	-	-	18,285	8,525	100.0%	8,525	82,381	-
Accumulated Outward Remittance for Investment from Taiwan to Mainland China - End of the Period	Investment Amounts Authorized by the Investment Commission, MOEA	Upper Limit on Investment on the Company's Investments in Mainland China
---	---	---
$ 72,886	$ 74,458	$10,509,289 (Note 5)
(USD 2,319)	(USD 2,369)

Note 1: Shanghai Youhong Engineering Technical Consulting Co., Ltd. was invested through the investee company, Hung Ching Co., Ltd.
Note 2: It was invested by Shanghai Youhong Engineering Technical Consulting Co., Ltd. with its own capital, and the Company did not remit the funds separately.
Note 3: Shanghai You Chang Property Management Co., Ltd. was invested through the investee company, Superb First Co., Ltd.
Note 4: Investment income in the current period was calculated based on the financial statements audited by the certified public accountant for the same period.
Note 5: In accordance with the "Principles for Review of Investment or Technical Cooperation in the Mainland China" of the Investment Commission, it regulates the higher of 60% of the Company's net value or consolidated net value.

STATEMENTS OF MAJOR ACCOUNTING SUBJECTS

ITEM	CODE / INDEX
Statement of major accounting items in assets, liabilities and equity
Statement of cash and cash equivalents	Statement 1
Statement of inventories	Statement 2
Statement of other current assets	Note 13
Statement of financial assets at FVTOCI - non-current	Statement 3
Statement of changes in investments accounted for using the equity method	Statement 4
Statement of changes in property, plant and equipment	Note 11
Statement of changes in investment properties	Note 12
Statement of short-term borrowings	Note 14, Statement 5
Statement of short-term bills payable	Note 14, Statement 6
Statement of long-term borrowings	Note 14, Statement 7
Statement of major accounting items in profit or loss
Statement of operating revenue	Statement 8
Statement of operating cost	Statement 8
Statement of marketing expenses	Statement 9
Statement of general and administrative expenses	Statement 9
Statement of other gains and losses, net	Note 19
Statement of finance costs	Note 19
Summary statement of current period employee benefits, depreciation, depletion and amortization expenses by function	Note 19, Statement 10

69 -

Hung Ching Development & Construction Co., Ltd.
Statement of cash
December 31, 2025

Statement 1
Unit: In Thousands of New Taiwan Dollars,
Unless Otherwise Specified

ITEM	Summary	Amount
Cash on hand and working capital		$ 779
Bank deposits
Demand deposits		60,514
		$ 61,293

70 -

Hung Ching Development & Construction Co., Ltd.
Statement of changes in inventories, net
January 1 to December 31, 2025

Statement 2
Unit: NT$ thousand

Construction Project	Amount at Beginning of Year	Increase (decrease) for the year	Reclassification and others (Note 1)	Balance, end of year
Real estate under development	$ 1,616,769	$ 2,210,579	( $ 3,397,370 )	$ 429,978
Real estate held for development	4,249,708	197,948	( 131,100 )	4,316,556
Building and land held for sale	941,781	( 138,439 )	3,474,607	4,277,949
Total	$ 6,808,258	$ 2,270,088	( $ 53,863 )	$ 9,024,483

Note 1: The amount includes the reclassification of properties under development to properties held for sale of NT$3,397,370 thousand, the reclassification of properties held for sale to investment properties of NT$109,129 thousand, the recognition of inventory write-down loss on properties held for development of NT$131,100 thousand, and the reversal of inventory write-down, resulting in a gain on properties held for sale of NT$186,366 thousand.

Note 2: The carrying amount of inventories amounted to NT$8,249,801 thousand was provided as collateral for short-term borrowings, short-term bills payable and long-term borrowings.

71 -

Hung Ching Development & Construction Co., Ltd.
Statement of financial assets at fair value through other comprehensive income - non-current
January 1 to December 31, 2025

Statement 3
Unit: In Thousands of New Taiwan Dollars/ In Thousand Shares

Name	Balance, beginning of year		Changes for the Year		Unrealized Gain (Loss) on Financial Products	Balance, end of year		Guarantee or Pledge
	Number of Shares	Fair value	Number of Shares	Amount		Number of Shares	Fair value
Domestic listed stock
ASE Industrial Holding Co., Ltd.	44,131	$ 7,149,182	-	$ -	$ 3,905,571	44,131	$ 11,054,753	Note 1

Note 1: A total of 43,510 thousand shares (with a carrying amount of NT$10,899,255 thousand) were pledged to financial institutions as collateral for financing.

72 -

Hung Ching Development & Construction Co., Ltd.
Statement of changes in investments accounted for using the equity method
January 1 to December 31, 2025
Statement 4
Unit: In Thousands of New Taiwan Dollars/ In Thousand Shares

Investee Company's	Balance, beginning of year		Changes for the Year		Cash dividends	Investment Gain (Loss) Recognized	Cumulative Translation Adjustments	Unrealized gain (loss) on financial assets at fair value through other comprehensive income	Balance, end of year			Market Price or Net Value of Ownership	Note
	Number of Shares	Amount	Number of Shares	Amount					Number of Shares	Shareholding %	Amount
Non-listed (Non-GTC) stock
Hung Ching Kuan Co., Ltd.	82,495	$ 504,362	-	$ -	$ -	($ 37,673)	$ -	$ -	82,495	63.5	$ 466,689	$ 735,405	Note 1
Fuhua engineering Co., Ltd.	65,000	624,397	-	-	( 152,000)	( 3,996)	-	-	65,000	100.0	468,401	1,032,694	Notes 1 and 2
Hung Ching Co., Limited	1,099	75,394	-	-	-	( 2,638)	204	-	1,099	100.0	72,960	72,960	Note 1
Hung Ching New Co., Ltd.	46,300	54,398	-	17,095	( 8,900)	( 3,018)	-	-	46,300	100.0	59,575	307,886	Notes 1 and 3
Superb First Co., Ltd	600	73,242	-	-	-	8,525	614	-	600	100.0	82,381	82,381	Note 1
ASE WeMall M&C Co.	500	3,382	-	-	-	660	-	-	500	100.0	4,042	4,042	Note 1
Luchu Development Corporation	208,853	2,634,667	-	-	-	432	-	48,047	208,853	96.5	2,683,146	2,155,902	Note 1
Ding Gu Properties Co., Ltd.	57,120	684,993	57,120	571,200	-	169,900	-	-	114,240	24.0	1,426,093	5,942,055	Note 1 and 4
		$ 4,654,835		$ 588,295	($ 160,900)	$ 132,192	$ 818	$ 48,047			$ 5,263,287	$10,333,325

Note 1: The net value of ownership was calculated based on the net carrying amount of the financial statements audited by the certified public accountant for the same period.
Note 2: The investment gains recognized under the equity method included unrealized and realized gains on upstream transactions for the year amounted to NT$179,776 thousand and NT$6,038 thousand, respectively. Net value of the equity includes cumulative unrealized gains on upstream transactions amounted to NT$564,293 thousand.
Note 3: The change for the year was the cash dividend of NT$17,095 thousand paid by the Company to Hung Ching New Co., Ltd. for the year. Net value of equity includes the carrying amount of the Company's shares held by subsidiaries.
Note 4: The changes for the current year were attributable to the Company's participation in the cash capital increase of Ding Gu Properties Co., Ltd. The Company subscribed to 57,120 thousand shares at NT$10 per share in proportion to its original shareholding, and offset the subscription payment by applying a portion of its receivables from Ding Gu Properties amounting to NT$571,200 thousand. The record date for the capital increase was set on September 30, 2025, and the registration of the capital change was completed on December 24, 2025.

73 -

Hung Ching Development & Construction Co., Ltd.
Statement of short-term borrowings
December 31, 2025
Statement 5
Unit: NT$ thousand

Type of borrowings and creditor	Maturity of borrowings	Interest Rate (%)	Balance, end of year	Financing facilities	Collateral
Credit loans
Financial institutions	2025/09/26-2026/03/25	Note 1	$ 30,000	$ 30,000	None
”	2025/11/17-2026/05/15	Note 1	30,000	30,000	None
”	2025/09/15-2026/09/14	Note 1	540,000	540,000	None
”	-		-	25,000	None
”	-		-	50,000	None
”	-		-	20,000	None
			600,000	695,000
Guaranteed loans
Financial institutions	2025/09/26-2026/03/25	Note 2	500,000	500,000	Major shareholders providing time deposit certificates
”	2025/12/10-2026/06/08	Note 2	100,000	100,000	Major shareholders providing time deposit certificates
”	2025/07/11-2026/01/07	Note 2	100,000	100,000	Major shareholders providing time deposit certificates
”	2025/09/15-2026/03/13	Note 2	40,000	40,000	Major shareholders providing time deposit certificates
”	2025/12/26-2026/06/24	Note 2	60,000	60,000	Major shareholders providing time deposit certificates
”	2025/12/05-2026/01/05	Note 2	350,000	350,000	Financial assets at FVTOCI - ASE Industrial Holding Co. Stock
”	2025/12/15-2026/02/11	Note 2	30,000	50,000	Financial assets at FVTOCI - ASE Industrial Holding Co. Stock
”	2025/12/12-2026/03/12	Note 2	300,000	300,000	Financial assets at FVTOCI - ASE Industrial Holding Co. Stock
”	2025/10/13-2026/04/10	Note 2	50,000	50,000	Financial assets at FVTOCI - ASE Industrial Holding Co. Stock
”	2025/11/18-2026/05/15	Note 2	250,000	250,000	Financial assets at FVTOCI - ASE Industrial Holding Co. Stock
”	2025/09/08-2026/09/08	Note 2	250,000	250,000	Financial assets at FVTOCI - ASE Industrial Holding Co. Stock
”	-		-	300,000	Financial assets at FVTOCI - ASE Industrial Holding Co. Stock
”	-		-	75,000	Financial assets at FVTOCI - ASE Industrial Holding Co. Stock
”	-		-	350,000	Investment Properties
”	2025/10/28-2026/04/24	Note 2	170,000	369,565	Inventory - real estate held for development
”	2025/11/28-2026/05/27	Note 2	60,000	130,435	Inventory - real estate held for development
			2,260,000	3,275,000
			$ 2,860,000	$ 3,970,000

Sote 1: Interest rates range from 2.20% to 2.38%.
Sote 2: Interest rates range from 2.18% to 2.96%.

Hung Ching Development & Construction Co., Ltd.
Statement of short-term bills payable
December 31, 2025
Statement 6
Unit: NT$ thousand

Guarantee Agency	Issuance period	Interest Rate Interval (%)	Amount			Financing facilities	Collateral
			Total issued amount	Unamortized Discount	Carrying amount
Commercial paper payable
TCB Bills	2025/11/03-2026/01/30	Note	$ 345,000	$ 819	$ 344,181	$ 345,000	Financial assets at FVTOCI - ASE Industrial Holding Co. Stock
DBS Bank	2025/11/14-2026/01/13	Note	808,000	751	807,249	808,000	Inventory - real estate held for development
TCB Bills	2025/11/03-2026/01/30	Note	55,000	131	54,869	55,000	Investment Properties
Taching Bills	2025/12/12-2026/02/10	Note	480,000	1,600	478,400	496,552	Financial assets at FVTOCI - ASE Industrial Holding Co. Stock
Taching Bills	2025/12/26-2026/02/10	Note	60,000	200	59,800	62,069	Financial assets at FVTOCI - ASE Industrial Holding Co. Stock
Taching Bills	2025/12/29-2026/02/10	Note	40,000	133	39,867	41,379	Financial assets at FVTOCI - ASE Industrial Holding Co. Stock
DBS Bank	2025/11/21-2026/01/20	Note	427,500	623	426,877	427,500	Inventory - real estate held for development
International bills	-	Note	-	-	-	150,000	Financial assets at FVTOCI - ASE Industrial Holding Co. Stock
Grand Bills	2025/11/28-2026/01/27	Note	140,000	311	139,689	300,000	Financial assets at FVTOCI - ASE Industrial Holding Co. Stock
Grand Bills	-	Note	-	-	-	43,000	Inventory - building and land held for sale
DBS Bank	2025/12/19-2026/02/11	Note	800,000	2,373	797,627	800,000	Credit loans
Taching Bills	-	Note	-	-	-	248,000	Guarantee by major shareholders
DBS Bank	2025/10/13-2026/01/09	Note	375,000	229	374,771	375,000	Fixed assets and investment properties
DBS Bank	2025/12/12-2026/01/12	Note	598,000	517	597,483	637,000	Inventory - building and land held for sale
Mega Bills	2025/12/29-2026/02/11	Note	50,000	176	49,824	342,000	Inventory - real estate held for development
Mega Bills	2025/12/29-2026/02/11	Note	50,000	177	49,823	500,000	Inventory - building and land held for sale
DBS Bank	2025/12/19-2026/03/19	Note	450,000	2,546	447,454	450,000	Prepayments
Shin Kong Bank	2025/12/02-2026/02/03	Note	280,000	672	279,328	280,000	Hung Ching Kuan Co., Ltd. provided real estate.
Shin Kong Bank	2025/11/05-2026/02/03		320,000	771	319,229	320,000	Hung Ching Kuan Co., Ltd. provided real estate.
			$ 5,278,500	$ 12,029	$ 5,266,471	$ 6,680,500

Note: Interest rates range from 2.478% to 3.068%.

Hung Ching Development & Construction Co., Ltd.
Statement of long-term borrowings
December 31, 2025

Statement 7
Unit: In Thousands of New Taiwan Dollars, Unless Otherwise Specified

Name	Borrowings duration	Repayment method	Annual Interest Rate (%)	Maturing within one year	Expires in More than One Year	Balance	Collateral or Pledge
Guaranteed loans
Bank of Taiwan	2018/05/16-2033/05/16	Note 1	Note 5	$ 164,864	$ 1,166,942	$ 1,331,806	Investment Properties
KGI Bank	2025/09/15-2028/08/28	Note 2	Note 5	-	200,000	200,000	Inventory - real estate held for development
Bank of Taiwan	2023/08/23-2026/05/02	Note 3	Note 5	1,500,000	-	1,500,000	Inventory - building and land held for sale
Mega Bank	2025/12/26-2028/12/26	Note 4	Note 5	20,000	1,830,000	1,850,000	Luchu company providing stocks
Long term commercial paper payable
DBS Bank	2024/11/01-2026/12/31	-	Note 5	-	158,768	158,768	Inventory - real estate under development
DBS Bank	2024/11/01-2026/12/31	-	Note 5	-	44,935	44,935	Inventory - real estate under development
				$ 1,684,864	$ 3,400,645	$ 5,085,509

Note 1: Repayment method of interests paid monthly and principal paid by installments starting the 3rd year.
Note 2: Repayment method of interests paid monthly, and principal paid by the date of maturity.
Note 3: Repayment method of interests paid monthly, and principal paid by the date of maturity.
Note 4: The repayment terms stipulate monthly interest payments. Principal repayment shall commence six months after the initial drawdown, with subsequent installments payable at six-month intervals. Installments one through five shall each repay NT$140 thousand, and the sixth installment shall settle the remaining principal in full.
Note 5: Interest rates range from 2.62% to 3.05%.

76 -

Hung Ching Development & Construction Co., Ltd.
Statement of operating revenue and cost
January 1 to December 31, 2025

Statement 8
Unit: NT$ thousand

ITEM	Construction and Planning Revenue, Net	Construction and Planning Cost
Construction and planning business
Di Jing Garden	$ 298,523	$ 128,055
Other (Note 1)	16,263	( 44,883 )
	314,786	83,172
Lease business	167,872	118,362
Other business	71,393	63,225
	$ 554,051	$ 264,759

Note 1: The amount of each item does not exceed 5% of the account balance.

77 -

Hung Ching Development & Construction Co., Ltd.
Statement of operating expenses
January 1 to December 31, 2025

Statement 9
Unit: NT$ thousand

ITEM	Selling and marketing expenses	General and administrative expenses	Total
Advertising expenses	$ 14,674	$ 3,046	$ 17,720
Salary (Note 1)	8,640	54,620	63,260
Miscellaneous fees	33	19,862	19,895
Taxation	-	22,759	22,759
Consultant fee	-	27,257	27,257
Other (Note 2)	1,435	38,163	39,598
	$ 24,782	$ 165,707	$ 190,489

Note 1: Salary expenses include pension expenses, employees' compensation, and remuneration of directors.
Note 2: The amount of each item does not exceed 5% of the account balance.

78 -

Hung Ching Development & Construction Co., Ltd.
STATEMENT OF EMPLOYEE BENEFITS, DEPRECIATION AND AMORTIZATION EXPENSES BY
FUNCTION
January 1 to December 31, 2025 and 2024
Statement 10
Unit: NT$ thousand

	2025			2024
	Belongs to Operating Cost	Belongs to Operating Expenses	Total	Belongs to Operating Cost	Belongs to Operating Expenses	Total
Employee Benefits Expenses
Salary expenses	$ -	$ 45,126	$ 45,126	$ -	$ 56,207	$ 56,207
Labor and health insurance premiums	-	4,391	4,391	-	3,993	3,993
Pension expenses	-	1,650	1,650	-	1,649	1,649
Remuneration of directors	-	8,242	8,242	-	23,676	23,676
Other employee benefits expenses	-	1,680	1,680	-	4,885	4,885
	-	61,089	61,089	-	90,410	90,410
Depreciation expenses	107,607	3,750	111,357	94,259	7,485	101,744
Amortization expenses	-	2,762	2,762	-	3,103	3,103
	$ 107,607	$ 67,601	$ 175,208	$ 94,259	$ 100,998	$ 195,257

Note 1: The average number of employees in 2025 and 2024 was 38, respectively, of which the number of directors who were not also employees was 7 in both cases.

Note 2: The average employee benefits expenses were NT$1,705 thousand for the year. ([Total employee benefit expenses for the current year - Total directors' remuneration] / [Number of employees for the current year - Number of directors who do not serve as employees]) The average employee benefits expenses were NT$2,153 thousand for the prior year. ([Total employee benefit expenses for the previous year - Total directors' remuneration] / [Number of employees for the previous year - Number of directors who do not serve as employees])

Note 3: The average employee's salary expenses were NT$1,456 thousand for the year. (Total employee salary expenses for the current year / [Number of employees for the current year - Number of directors who do not serve as employees]) The average employees' salary expenses were NT$1,813 thousand for the prior year. (Total employee salary expenses for the previous year / [Number of employees for the previous year - Number of directors who do not serve as employees])

Note 4: The change in the average employees' salary expenses was (19%). ([The average employee salary expense for the current year - The average employee salary expense for the previous year] / The average employee salary expense for the previous year).

Note 5: The Company had established the Audit Committee to replace the role of supervisors on July 13, 2017, and was not applicable to disclose information on remuneration of supervisors.

Note 6: The Company's salary policies are as follows:

(1) In accordance with Article 23 of the Articles of Incorporation of the Company, if the Company has profit for the year, then 1% to 7% shall be appropriated as the employee compensation resolved by the Board of Directors to distribute by shares or cash to those employees of the Company who meet specified conditions. The aforementioned profit may also be resolved by the Board of Directors to provide directors' remuneration for no more than 3% of appropriation. The allocation of employee compensation and Directors' remuneration shall be reported to the shareholders' meeting.

When there are accumulated losses, the Company shall offset the appropriate amounts before remuneration and then allocate the remuneration and compensation of the employee and directors in proportion to the preceding paragraph.

The remuneration of independent directors of the Company is fixed for each individual on an annual basis, except for those with a term of less than one year, in proportion to the actual number of days they have been appointed; The part-time remuneration for the independent directors of the Company who also serve on the Compensation and Remuneration Committee of the Company is also fixed for each individual on an annual basis, except for those with a term of less than one year, in proportion to the actual number of days they have held.

(2) The amount of employee compensation paid to the managers of the Company was reviewed by the Compensation and Remuneration Committee and then submitted to the Board of Directors for approval based on the job title, contributions, operating performance of the Company for the year, and consideration of future risks of the Company.

(3) The employee salary package of the Company includes monthly salary, bonuses, and employee compensation. The standards for employees' salary are approved based on the job title, education and work experiences, professional knowledge, and market values. Employee compensation are determined in accordance with the total amount allocated by the Articles of Incorporation, operating performance of the Company for the year, contribution of the job title, and results of performance evaluation.

80 -

AI assistant

Hung Ching Audit Report / Information 2025

52140_rns_2026-05-11_edac26d4-e8b8-4bf0-9b75-a9547018f83b.pdf

Hung Ching Development & Construction Co., Ltd.

Parent Company Only Financial Statements and Independent Auditors' Report

Key Audit Matters

Sales revenue of building and land

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

4. Summary of Significant Accounting Policies

6. Cash and Cash Equivalents

7. Notes Receivable, Trade Receivables, Trade Receivables – Related Parties, Other Receivables, and Other Receivables – Related Parties

8. Inventories

9. Financial Assets Measured at Fair Value through Other Comprehensive Income - Non-current

10. Investments Accounted for Using Equity Method

11. Property, Plant and Equipment

12. Investment Properties

13. Other Assets

14. Borrowings

15. Trade Payables and Trade Payables to Related Parties

16. Post-retirement Benefit Plans

17. Equity

19. Net Income from Continuing Operation

Accrual rates

Amount

20. Income Tax from Continuing Operations

21. Earnings per Share

22. Management of Risks in Capital

23. Financial Instruments

Sensitivity analysis

(b) Other price risk

Sensitivity analysis

26. Significant Events after the Balance Sheet Date

27. Supplementary Disclosures

STATEMENTS OF MAJOR ACCOUNTING SUBJECTS

AI assistant

Hung Ching — Audit Report / Information 2025

52140_rns_2026-05-11_edac26d4-e8b8-4bf0-9b75-a9547018f83b.pdf

Hung Ching Development & Construction Co., Ltd.

Parent Company Only Financial Statements and Independent Auditors' Report

Key Audit Matters

Sales revenue of building and land

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

4. Summary of Significant Accounting Policies

6. Cash and Cash Equivalents

7. Notes Receivable, Trade Receivables, Trade Receivables – Related Parties, Other Receivables, and Other Receivables – Related Parties

8. Inventories

9. Financial Assets Measured at Fair Value through Other Comprehensive Income - Non-current

10. Investments Accounted for Using Equity Method

11. Property, Plant and Equipment

12. Investment Properties

13. Other Assets

14. Borrowings

15. Trade Payables and Trade Payables to Related Parties

16. Post-retirement Benefit Plans

17. Equity

19. Net Income from Continuing Operation

Accrual rates

Amount

20. Income Tax from Continuing Operations

21. Earnings per Share

22. Management of Risks in Capital

23. Financial Instruments

Sensitivity analysis

(b) Other price risk

Sensitivity analysis

26. Significant Events after the Balance Sheet Date

27. Supplementary Disclosures

STATEMENTS OF MAJOR ACCOUNTING SUBJECTS

More from Hung Ching

Hung Ching Audit Report / Information 2025