3003

K.S. TERMINALS INC.

Parent Company-Only Financial Statements and Independent Auditors' Report

For the years ended December 31, 2025 and 2024

Address: No. 8, Changbin East Third Road, Shianxi Township, Changhua County

Tel.: (04) 758-0001

Parent Company-Only Financial Statements

Item	Page
I. Cover	1
II. Table of Contents	2
III. CPAs’ Audit Report	3-6
IV. Parent Company-Only Balance Sheets	7-8
V. Parent Company-Only Statement of Comprehensive Income	9
VI. Parent Company-Only Statement of Changes in Equity	10
VII. Parent Company-Only Statement of Cash Flows	11
VIII. Notes to the Parent Company-Only Financial Statements
(I) Company History	12
(II) Date and Procedure for Approval of Financial Statements	12
(III) Application of Newly Issued and Amended Standards and Interpretations	12-17
(IV) Summary of Significant Accounting Policies	17-38
(V) Critical Accounting Judgments, Assumptions, and Key Sources of Estimation Uncertainty	39-40
(VI) Description of Significant Accounting Items	41-64
(VII) Related Party Transactions	64-66
(VIII) Assets Pledged	67
(IX) Material Contingent Liabilities and Unrecognized Contractual Commitments	67
(X) Major Disaster Loss	67
(XI) Material Events After the Balance Sheet Date	67
(XII) Others	67-77
(XIII) Additional Disclosures
1. Information on Material Transactions	78-80
2. Information on Investees	81-82
3. Information on Investment in Mainland China	83
4. Information on Major Shareholders	83
IX. Statement of Significant Accounting Items	84-95

CPAs' Audit Report

To K.S. TERMINALS INC.,

Audit opinions

We have audited the accompanying parent company-only balance sheets of K.S. TERMINALS INC. (the “Company”) for the years ended December 31, 2025 and 2024, and the related parent company-only statements of comprehensive income, changes in equity, and cash flows for the years then ended, as well as the related notes, including a summary of significant accounting policies (collectively referred to as the “parent company-only financial statements”).

In our opinion, based on our audit results and the audit reports of other accountants (please refer to the Other Matters section), the accompanying parent company-only financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and its financial performance and cash flows for the years then ended in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Audit Opinion

We conducted our audit in accordance with the Regulations Governing the Auditing and Attestation of Financial Statements by Certified Public Accountants and the generally accepted auditing standards. Our responsibilities under those standards are further described in the paragraph “CPAs’ Responsibilities for the Audit of the Parent Company-Only Financial Statements.” We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Accountant and have fulfilled our other responsibilities in accordance with these requirements. Based on our audit results and the audit reports of other accountants, we are convinced that we have obtained sufficient and appropriate audit evidence to serve as the basis for our audit opinion.

Key Audit Matters

Key audit matters refer to the most vital matters in our audit of the Company’s financial statements for the year ended December 31, 2025, based on our professional judgment. These matters are addressed in our audit of the parent company-only financial statements as a whole and in forming our audit opinion. We do not express a separate opinion on these matters.

Inventory Valuation (including investment using the equity method – subsidiary inventory)

The inventories of the Company and its subsidiaries invested using the equity method are material to the financial statements. The main raw materials in the inventory are bronze and copper. Due to fluctuations in international copper prices, the prices of raw material inventories may vary greatly. Additionally, fluctuations in international raw material prices can impact the selling prices of the relevant finished goods, especially when raw material prices are excessively low. As the amount of the allowance for inventory write-downs is

material to the financial statements, we adopted it as a key audit matter.

Our audit procedures included, but were not limited to, understanding and testing the effectiveness of the internal control system established by the management team regarding inventory impairment losses; assessing the reasonableness of the allowance for inventory valuation losses provided; performing inventory observation procedures to confirm the condition of year-end inventory; recalculating unit costs for selected samples; and, for net realizable values used by management, selecting samples to verify against relevant purchase and sales documentation to validate the accuracy of inventory net realizable values.

We also considered the appropriateness of the disclosures in Notes 4, 5, and 6 to the financial statements related to inventories.

Other Matters – Reference to Other Accountants

Among the investee companies included in K.S. Terminals Inc.’s separate financial statements, the financial statements of certain investee companies were not audited by us but were audited by other accountants. Therefore, our opinion on the aforementioned parent company-only financial statements, with respect to the amounts listed in the financial statements of these investee companies, is based on the audit reports of other accountants. As of December 31, 2025, and December 31, 2024, the investments in these investee companies accounted for using the equity method were NTD 191,849 thousand and NTD 226,066 thousand, respectively, representing 2% and 3% of total assets. For the years ended December 31, 2025 and 2024, the share of profit or loss of associates and joint ventures accounted for using the equity method was NTD (34,729) thousand and NTD (40,770) thousand, representing (19)% and (6)% of net profit before tax, respectively. The share of other comprehensive income of associates and joint ventures accounted for using the equity method was NTD 512 thousand and NTD 4,974 thousand, representing (8)% and 24% of total other comprehensive income, respectively.

Responsibilities of the management and the governing body for the parent company-only financial statements

Management is responsible for the preparation and fair presentation of the separate financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and for maintaining necessary internal controls relevant to the preparation of parent company-only financial statements to ensure that the parent company-only financial statements 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 relevant matters, and adopting the going concern basis of accounting, unless management intends to liquidate the Company, cease operations, or has no viable alternative but to do so.

The Company’s governing body (including the Audit Committee) is responsible for supervising the financial reporting process.

CPAs’ responsibilities for the audit of the parent company-only financial statements

Our objectives are to obtain reasonable assurance on whether the parent company-only financial statements as a whole are free from material misstatement arising from fraud or error and to issue an independent auditors' report. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with the generally accepted auditing standards of the Republic of China will always detect a material misstatement when it exists. Misstatement may arise from fraud or error. If the monetary amounts are misstated, either separately or in aggregate, could reasonably be expected to influence the economic decisions of the users of the parent company-only financial statements, they are considered material.

We have exercised our professional judgment and maintained professional skepticism when performing the audit work in accordance with the generally accepted auditing standards. We also performed the following tasks:

We identified and assessed the risks of material misstatement arising from fraud or error within the parent company-only financial statements, designed and executed countermeasures in response to said risks, and obtained sufficient and appropriate audit evidence to provide a basis for our opinion. Fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Therefore, the risk of not detecting a material misstatement resulting from fraud is higher than one resulting from error.
We learned about the internal control related to the audit in order to design appropriate audit procedures under the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
We evaluated the appropriateness of the accounting policies adopted and the reasonableness of the accounting estimates and relevant disclosures made by the management.
We drew conclusions on the appropriateness of management's adoption of the going concern basis of accounting based on the audit evidence obtained and on whether a material uncertainty exists regarding events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we are of the opinion that a material uncertainty exists, we shall remind users of the parent company-only financial statements to pay attention to relevant disclosures in said statements in our audit report. If such disclosures are inadequate, we need to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.

We evaluated the overall presentation, structure, and content of the parent company-only financial statements (including relevant notes) and whether the parent company-only financial statements adequately presented the relevant transactions and events.
We are convinced that we have acquired enough and appropriate audit evidence of the financial information of entities within the Group to serve as the basis of audit opinion on the parent company-only financial statements. We are responsible for guiding, supervising, and performing the audit and forming an audit opinion on the Group.

The matters communicated between us and the governing body included the planned scope and time of the audit and significant audit findings (including any significant defects in internal control identified during the audit).

We also provided the governing body with a declaration that we have complied with the Norm of Professional Ethics for Certified Public Accountants regarding independence and communicated with it all relationships and other matters that might possibly be regarded as detrimental to our independence (including relevant protective measures).

From the matters communicated with the governing body, we determined the key audit matters for the audit of the Company's financial statements for the year ended December 31, 2025. We have clearly indicated such matters in the auditors' report, unless legal regulations prohibit the public disclosure of specific matters or in extremely rare cases in which we decided not to communicate specific items in the auditors' report for it could be reasonably anticipated that the negative effects of such disclosure would be greater than the public interest it might bring forth.

EY Taiwan
Approved by the Competent Authority to Audit/Review Publicly Listed
Companies' Financial Statements
Case Audit No.: Jin-Guan-Zheng-Shen-Zi
No. 1060027042
Jin-Guan-Zheng-Shen-Zi
No. 1080326041

Certified Public Accountant: Chen Ming-Hung Huang Yu-Ting

March 12, 2026

K.S. TERMINALS INC.
Parent Company-only Balance Sheets
December 31, 2025 and 2024

(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Assets			December 31, 2025		December 31, 2024
Code	Accounting Item	Note	Amount	%	Amount	%
	Current Assets
1100	Cash and Cash Equivalents	4 and 6.1	$1,682,325	22	$2,244,118	27
	Financial Assets at Fair Value Through Profit or Loss – current	4 and 6.2	872,773	11	523,421
1110						6
1136	Financial Assets Measured at Amortized Cost – current	4	31,375	-	32,740	1
1150	Net Notes Receivable	4, 6.3, and 6.14	26,639	-	26,256	-
1170	Net Accounts Receivable	4, 6.3, and 6.14	352,327	5	368,690	5
1180	Net Accounts Receivable – Related Parties	4, 6.3, 6.14, and 7	105,879	1	151,301	2
1200	Other Receivables	4	70,823	1	29,128	-
130x	Inventories	4 and 6.4	1,018,646	13	1,389,826	17
1410	Advance Receipts	4	49,502	1	77,748	1
1470	Other Current Assets		14,919	-	11,017	-
11xx	Total Current Assets		4,225,208	54	4,854,245	59
	Non-current Assets
	Financial Assets at Fair Value Through Other Comprehensive Income – non-current	4 and 6.5	75,816	1	76,837
1517						1
1550	Investments Using the Equity Method	4 and 6.6	2,179,444	28	1,930,655	23
1600	Property, plant and equipment	4, 6.8, and 7	1,230,174	16	1,323,415	16
1755	Right-of-use Assets	4, 6.15, and 7	11,429	-	85	-
1760	Net Investment Property	4	33,882	1	37,194	1
1780	Intangible Assets	4	7,669	-	7,530	-
1840	Deferred Tax Assets	4 and 6.19	17,072	-	9,616	-
1900	Other Non-current Assets		9,135	-	30,495	-
15xx	Total Non-current Assets		3,564,621	46	3,415,827	41

1XXX	Total assets		$7,789,829	100	$8,270,072	100

(Please see the Notes to the Parent Company-only Financial Statements.)

Chairman: Cheng Ke-Pin
Managerial Officer: Cheng Chieh-Yuan
Chief Accounting Officer: Tseng Yu-Chin

K.S. TERMINALS INC.

Parent Company-only Balance Sheets (Continued)

December 31, 2025 and 2024

(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Liabilities and Equity			December 31, 2025		December 31, 2024
Code	Accounting Item	Note	Amount	%	Amount	%
	Current liabilities
2100	Short-term Borrowings	4 and 6.8	$400,000	5	$325,000	4
2130	Contract Liabilities – current	4 and 6.13	6,771	-	3,405	-
2150	Notes Payable		1,645	-	2,201	-
2170	Accounts Payable		61,631	1	100,803	1
2180	Accounts Payable – Related Parties		3,077	-	4,299	-
2200	Other Payables	4 and 6.9	205,000	3	274,504	3
2230	Current Tax Liabilities	4 and 6.19	17,889	-	71,675	1
	Long-term Liabilities Due Within One Year or	4 and 6.10	197,448	3	271,946	3
2322	One Business Cycle
2399	Other Current Liabilities	4, 6.15, and 7	12,459	-	6,221	-
21xx	Subtotal of Current Liabilities		905,920	12	1,060,054	12
	Non-current Liabilities
2540	Long-term Borrowings	4 and 6.10	165,777	2	363,225	5
2570	Deferred Tax Liabilities	4 and 6.19	226,286	3	197,450	2
2600	Other Non-current Liabilities	4, 6.15, and 7	7,601	-	793	-
25xx	Subtotal of Non-current Liabilities		399,664	5	561,468	7
2xxx	Total Liabilities		1,305,584	17	1,621,522	19
	Equity Attributable to Owners of the Parent Company
31XX	Capital Stock	6.12
3100	Common stock		1,556,549	20	1,556,549	19
3110	Capital Surplus	6.12	27,281	-	27,281	-
3300	Retained Earnings	6.12		-
3310	Legal Reserve		918,175	12	857,713	10
3320	Special Reserve		115,510	1	136,147	2
3350	Undistributed Earnings		3,982,803	51	4,186,370	51
	Subtotal of Retained Earnings		5,016,488	64	5,180,230	63
3400	Other Equity
	Exchange differences arising from the translation of the financial statements of		(18,945)	-	(10,308)	-
3410	foreign operations
3420	Unrealized Gain (loss) on Financial Assets at Fair Value Through Other Comprehensive Income	12	(97,128)	(1)	(105,202)	(1)
	Subtotal of Other Equity		(116,073)	(1)	(115,510)	(1)
3XXX	Total Equity		6,484,245	83	6,648,550	81
	Total Liabilities and Equity		$7,789,829	100	$8,270,072	100

(Please see the Notes to the Parent Company-only Financial Statements.)

Chairman: Cheng Ke-Pin

Managerial Officer: Cheng Chieh-Yuan

Chief Accounting Officer: Tseng Yu-Chin

K.S. TERMINALS INC.
Parent Company-only Statement of Comprehensive Income
For the years ended December 31, 2025 and 2024
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Code	Accounting Item	Note	2025		2024
			Amount	%	Amount	%
4000	Operating income	4, 6.13, and 7	$2,619,463	100	$2,989,339	100
5000	Operating Costs	4, 6.4, 6.16, and 7	(2,135,793)	(81)	(2,169,487)	(73)
5900	Operating Gross Profit		483,670	19	819,852	27
5910	Unrealized Sales Profit and Loss		(22,423)	(1)	(27,422)	(1)
5920	Realized Sales Profit and Loss		27,422	1	23,147	1
	Net Operating Gross Profit		488,669	19	815,577	27
6000	Operating Expenses	6.16 and 7
6100	Selling Expenses		(159,615)	(6)	(180,758)	(6)
6200	Administrative Expenses		(162,388)	(6)	(148,727)	(5)
6300	Research and Development Expenses		(126,922)	(5)	(120,675)	(4)
6450	Gains (losses) on reversal of expected credit impairment	4 and 6.14	156	-	(33)	-
	Total Operating Expenses		(448,769)	(17)	(450,193)	(15)
6900	Operating Profit		39,900	2	365,384	12
7000	Non-operating Revenue and Expenses
7010	Other Income	17 and 6.4	47,790	2	66,800	2
7020	Other Gains and Losses	6.17	(18,686)	(1)	87,474	3
7050	Financial Costs	6.17	(13,930)	(1)	(16,701)	-
	Share of Profit or Loss of Subsidiaries, Associates, and Joint Ventures Recognized Using the Equity Method	4 and 6.6	132,043	5	208,770	7
7070	Total Non-operating Income and Expenses		147,217	5	346,343	12
7900	Net Profit Before Tax		187,117	7	711,727	24
7950	Income Tax Expenses	4 and 6.19	(33,344)	(1)	(107,105)	(4)
8200	Current Net Profit		153,773	6	604,622	20
8300	Other Comprehensive Income (loss)	6.6, 6.18, and 6.19
	Items That Will Not Be Reclassified Subsequently to Profit or Loss
8310	Unrealized Gain (loss) From Investments in Equity Instruments Measured at Fair Value Through Other Comprehensive Income		1,578	-	(28,035)	(1)
8316	Income Tax Related to Items Not Reclassified		291	-	(44)	-
	Items That May Be Reclassified Subsequently to Profit or Loss
8360	Exchange differences arising from the translation of the financial statements of foreign operations		(11,436)	-	54,678	2
8361	Share of other comprehensive income of associates and joint ventures accounted for using the equity method – items that may be reclassified to profit or loss		512	-	4,974	-
8370	Income Tax Related to Items That May Be Reclassified		2,287	-	(10,936)	-
8399	Other Income in the Current Period (net of tax)		(6,768)	-	20,637	1
8500	Total Comprehensive Income in the Current Period		$147,005	6	$625,259	21
	Earnings per Share
9750	Basic Earnings per Share (NTD)	4 and 6.20	$0.99		$3.88
9850	Diluted Earnings per Share (NTD)		$0.99		$3.88

(Please see the Notes to the Parent Company-only Financial Statements.)

Chairman: Cheng Ke-Pin
Managerial Officer: Cheng Chieh-Yuan
Chief Accounting Officer: Tseng Yu-Chin

K.S. TERMINALS INC.
Parent Company-only Statement of Changes in Equity
For the years ended December 31, 2025 and 2024
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

	Item	Common stock	Capital Surplus	Retained Earnings			Other Equity Interest Items		Total Equity
				Legal Reserve	Special Reserve	Undistributed Earnings	Exchange differences arising from the translation of the financial statements of foreign operations	Unrealized Gain (loss) on Financial Assets at Fair Value Through Other Comprehensive Income
Code		3110	3200	3310	3320	3350	3410	3420	3xxx
A1	Balance as of January 1, 2024	$1,556,549	$27,281	$803,369	$114,850	$3,890,871	$(59,024)	$(77,123)	$6,256,773
B1	2023 Statement of Earnings Distribution			54,344		(54,344)			-
B3	Appropriation for legal reserve				21,297	(21,297)			-
B5	Appropriation for Special Reserve					(233,482)			(233,482)
D1	Cash Dividends on Ordinary Shares					604,622			604,622
D3	Net income for 2024						48,716	(28,079)	20,637
D5	Other Comprehensive Income for 2024
D5	Total Comprehensive Income in the Current Period	-	-	-	-	604,622	48,716	(28,079)	625,259
Z1	Balance as of December 31, 2024	$1,556,549	$27,281	$857,713	$136,147	$4,186,370	$(10,308)	$(105,202)	$6,648,550
A1	Balance as of January 1, 2025	$1,556,549	$27,281	$857,713	$136,147	$4,186,370	$(10,308)	$(105,202)	$6,648,550
B1	2024 Statement of Earnings Distribution			60,462		(60,462)			-
B5	Appropriation for legal reserve					(311,310)			(311,310)
B17	Cash Dividends on Ordinary Shares				(20,637)	20,637			-
D1	Reversal of Special Reserve					153,773			153,773
D3	Net income for 2025						(8,637)	1,869	(6,768)
D5	Other comprehensive income for 2025
D5	Total Comprehensive Income in the Current Period	-	-	-	-	153,773	(8,637)	1,869	147,005
Q1	Disposal of Equity Instruments at Fair Value Through Other comprehensive income					(6,205)		6,205	-
Z1	Balance as of December 31, 2025	$1,556,549	$27,281	$918,175	$115,510	$3,982,803	$(18,945)	$(97,128)	$6,484,245

(Please see the Notes to the Parent Company-only Financial Statements.)

Chairman: Cheng Ke-Pin
Managerial Officer: Cheng Chieh-Yuan
Chief Accounting Officer: Tseng Yu-Chin

K.S. TERMINALS INC.
Parent Company-only Statement of Cash Flows
For the years ended December 31, 2025 and 2024
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Code	Item	2025	2024	Code	Item	2025	2024
AAAA	Cash flow from operating activities:			BBBB	Cash flow from investing activities:
A10000	Net Income Before Tax for This Period	$187,117	$711,727	B00020	Disposal of Financial Assets at Fair Value Through Other Comprehensive Income	2,599	-
A20000	Adjustments:			B00060	Decrease (increase) in financial assets at amortized cost	1,365	(32,740)
A20010	Income and Expenses:			B01800	Acquisition of investments accounted for using the equity method	(122,671)	(13,241)
A20100	Depreciation Expenses	84,152	80,972	B02700	Acquisition of property, plant and equipment	(44,122)	(43,294)
A20200	Amortization Expenses	2,718	2,288	B02800	Disposal of Property, Plant and Equipment	4,091	6,144
A20300	Gains (losses) on reversal of expected credit impairment	(156)	33	B04100	Decrease in Other Receivables	-	32,664
A20400	Net gain on financial assets and liabilities measured at fair value through profit or loss	(12,438)	(5,802)	B04500	Acquisition of Intangible Assets	(2,857)	(3,035)
A20900	Interest Expenses	13,930	16,701	B06700	Increase in Other Non-current Assets	(2,489)	(43,581)
A21200	Interest Income	(24,007)	(39,970)	B07600	Dividends Received	-	478,923
A21300	Dividend Income	(2,352)	(1,977)	BBBB	Net cash flows from (used in) investing activities	(164,084)	381,840
A22400	Share of Profit of Subsidiaries, Associates, and Joint Ventures Recognized Using the Equity Method	(132,043)	(208,770)	-
A22500	Loss (gain) on disposal and retirement of property, plant and equipment	3,903	(3,353)	CCCC	Cash flow from financing activities:
A23100	Gain on Disposal of Investments	(27,819)	(7,726)	C00100	Increase in Short-term Loans	985,000	1,730,000
A23900	Unrealized Sales Profit	22,423	27,422	C00200	Decrease in Short-term Borrowings	(910,000)	(1,805,000)
A24000	Realized Sales Profit	(27,422)	(23,147)	C01600	Long-term Borrowings	-	167,930
A29900	Other Items	43,552	193	C01700	Repayments of Long-term Borrowings	(271,946)	(110,157)
A30000	Changes in Current Assets/Liabilities Related to Operating Activities:			C04020	Lease Principal Repaid	(4,488)	(4,469)
A31115	Decrease (increase) in Financial Assets at Fair Value through Profit or Loss – current	(294,661)	111,023	C04500	Payout of Cash Dividends	(311,310)	(233,482)
A31130	Increase in Notes Receivable	(383)	(437)	C05600	Interest Paid	(13,964)	(16,707)
A31150	Decrease (increase) in Accounts Receivable	16,519	(44,093)	CCCC	Net Cash Outflow From Financing Activities	(526,708)	(271,885)
A31160	Decrease (increase) in Accounts Receivable – Related Parties	45,422	(83,985)	EEEE	Increase (decrease) in the Current Cash and Cash Equivalents	(561,793)	50,319
A31180	Decrease (increase) in Other Receivables	10,157	(5,715)	E00100	Cash and Cash Equivalents at the Beginning of the Period	2,244,118	2,193,799
A31200	Decrease (increase) in Inventories	333,785	(469,373)	E00200	Cash and Cash Equivalents at the End of the Period	$1,682,325	$2,244,118
A31230	Decrease (increase) in Prepayments	28,246	(41,609)
A31240	Increase in Other Current Assets	(892)	(1,214)
A32125	Increase (decrease) in Contract Liabilities	3,366	(1,749)
A32130	Decrease in Notes Payable	(556)	(1,428)
A32150	Increase (decrease) in Accounts Payable	(39,172)	39,932
A32160	(Decrease) increase in Accounts Payable – Related Parties	(1,222)	2,764
A32180	Decrease in Other Payables	(63,996)	(16,961)
A32230	Increase (decrease) in Other Current Liabilities	1,618	(1,102)
A33000	Cash Inflow From Operations	169,789	34,644
A33100	Interest Received	23,040	40,198
A33200	Dividends Received	2,352	1,977
A33500	Income Tax Paid	(66,182)	(136,455)
AAAA	Net Cash Inflows (Outflows) From Operating Activities	128,999	(59,636)

(Please see the Notes to the Parent Company-only Financial Statements.)

Chairman: Cheng Ke-Pin
Managerial Officer: Cheng Chieh-Yuan
Chief Accounting Officer: Tseng Yu-Chin

K.S. TERMINALS INC.

Notes to the Parent Company-Only Financial Statements

For the Years Ended December 31, 2025 and 2024

(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

I. Company History

K.S. TERMINALS INC. (hereinafter referred to as the “Company”) was incorporated in February 1978. It mainly engages in the production and sales of various terminal parts. It merged with Hongsong Steel Co., Ltd. on September 1, 1998. After the merger, the Company’s manufacturing, processing, and trading of iron materials, stainless steel goods, and molds increased.

The Company was approved by the competent authority to trade its stock on the Taiwan Stock Exchange in October 2011, and the stock was officially listed on the Taiwan Stock Exchange on February 19, 2002. The place of registration and main operating site are located at No. 8, Zhangbin East Third Road Xianxi Township, Changhua County.

II. Date and Procedure for Approval of Financial Statements

The Company’s parent company-only financial statements for the years of 2025 and 2024 were approved for issuance by the Board of Directors on March 12, 2026.

III. Application of Newly Issued and Amended Standards and Interpretations

Changes in accounting policies due to the initial application of the IFRSs

The Company has adopted the IFRSs endorsed by the FSC that are applicable to fiscal years beginning on or after January 1, 2025. The initial application of the newly issued and amended standards and interpretations has caused no material impact on the Company.

As of the date of approval and issuance of the financial statements, the Company has not adopted the following new standards, amendments, or interpretations that have been issued by the International Accounting Standards Board (IASB) and endorsed by the Financial Supervisory Commission (FSC):

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.

(Continued)

(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Item	New/Revised/Amended Standards and Interpretations	Effective Date Announced by the IASB
1	IFRS 17 Insurance Contracts	January 1, 2023
2	Amendments to Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7)	January 1, 2026
3	Annual Improvements to IFRSs – Volume 11	January 1, 2026
4	Contracts Referencing Nature-dependent Electricity (Amendments to IFRS 9 and IFRS 7)	January 1, 2026

(1) IFRS 17 Insurance Contracts

This standard provides a comprehensive model of insurance contracts, including all accounting-related elements (recognition, measurement, presentation, and disclosure principles). The core of the standard is a regular model. Under this model, during the initial recognition, the group of insurance contracts is measured at the aggregate amount of fulfillment cash flows and contractual service margins. The carrying amount at the end of each reporting period is the sum of the liabilities for remaining coverage and the liabilities for incurred claims.

In addition to the regular model, it also provides a specific applicable method for contracts with direct participation features (variable fee approach and a simplified method for short-term contracts) (premium allocation approach).

After this standard was published in May 2017, the amendments were published in 2020 and 2021. In these amendments, the effective date in the transitional provisions will be postponed for two years (that is, from January 1, 2021 postponed to January 1, 2023) with additional exemptions provided, while some regulations are simplified to reduce the cost of adopting this standard, and some regulations are amended to make some scenarios easier to interpret. After this standard becomes effective, it will supersede the transitional provisions (i.e. IFRS 4 "Insurance Contracts").

(2) Amendments to Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7)

This amendment includes:

(a) The standard clarifies that financial liabilities are derecognized on the settlement date and specifies accounting treatment for financial liabilities settled electronically prior to the settlement date.

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.
(Continued)
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(b) For financial assets with environmental, social, and governance (ESG) related features or other similar contingent features, the standard clarifies how to assess their cash flow characteristics.
(c) The standard clarifies the treatment of non-recourse assets and contractually linked instruments.
(d) For financial assets or liabilities with terms related to contingent features (including ESG-linked) and equity instruments classified as fair value through other comprehensive income, IFRS 7 requires additional disclosures.

(3) Annual Improvements to IFRSs – Volume 11
(a) Amendments to IFRS 1
(b) Amendments to IFRS 7
(c) Amendments to the Implementation Guidance of IFRS 7
(d) Amendments to IFRS 9
(e) Amendments to IFRS 10
(f) Amendments to IAS 7

(4) Contracts Referencing Nature-dependent Electricity (Amendments to IFRS 9 and IFRS 7)

This amendment includes:
(a) Clarification of the application of “own use” requirements.
(b) Allowance for hedge accounting when contracts are used as hedging instruments.
(c) Additional note disclosure requirements to help investors understand the impact of such contracts on an entity’s financial performance and cash flows.

The above newly issued and amended standards shall be applicable for accounting periods beginning on or after January 1, 2026. The Company has assessed that the new or revised standards and interpretations have no material impact on the Company.

Up to the date the financial statements were approved for release, the new or amended IFRSs published by IASB without endorsement by the FSC and not adopted by the Company:

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.

(Continued)

(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Item	New/Revised/Amended Standards and Interpretations	Effective Date Announced by the IASB
1	Amendments to IFRS 10 “Consolidated Financial Statements” and IAS 28 “Investments in Associates and Joint Ventures” – Sale or Contribution of Assets Between an Investor and its Associate or Joint Venture	To be determined by the IASB
2	IFRS 18 “Presentation and Disclosures in Financial Statements”	January 1, 2027 (Note)
3	Disclosure Initiative – Subsidiaries without Public Accountability: Disclosures (IFRS 19)	January 1, 2027
4	Translation into a Presentation Currency in a Hyperinflationary Economy (Amendments to IAS 21 and IAS 29)	January 1, 2027

(Note) The Financial Supervisory Commission announced, on September 25, 2025, that Taiwan will adopt IFRS 18 in 2028.

(1) Amendments to IFRS 10 “Consolidated Financial Statements” and IAS 28 “Investments in Associates and Joint Ventures” – Sale or Contribution of Assets Between an Investor and its Associate or Joint Venture

The amendments aim to address the inconsistency regarding the loss of control due to the investment in an affiliate or a joint venture through a subsidiary between IFRS 10 “Consolidated Financial Statements” and IAS 28 “Investments in Associates and Joint Ventures.” IAS 28 stipulates that when non-monetary assets are invested in exchange for equity in an affiliate or joint venture, the share of the resulting profit or loss shall be eliminated as the treatment method adopted for downstream transactions. IFRS 10 stipulates that the total gain or loss upon loss of control over a subsidiary shall be recognized. The amendments restrict the above requirements of IAS 28: when assets that constitute a business as defined in IFRS 3 are sold or purchased, the total resulting gain or loss shall be recognized.

In the amendments, IFRS 10 was amended so that when an investor sells or invests in a subsidiary (affiliate or joint venture) that does not constitute a business as defined by IFRS 3, only the profit or loss arising therefrom within the scope not belonging to the investor shall be recognized.

(2) IFRS 18 “Presentation and Disclosures in Financial Statements”

This standard will replace IAS 1 “Presentation of Financial Statements,” with the following major changes:

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.
(Continued)
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(a) Enhancing Comparability of the Income Statement
Income and expenses will be classified into five categories on the income statement: operating, investing, financing, income tax, or discontinued operations. The first three are new classifications designed to improve the structure of the income statement, requiring all entities to provide newly defined subtotals (including operating profit/loss.) By enhancing the structure of the income statement and introducing newly defined subtotals, investors will have a consistent starting point when analyzing financial performance across entities, making it easier to compare companies.

(b) Improving Transparency of Management Performance Measures
Entities are required to disclose explanations of company-specific metrics related to the income statement (referred to as management performance measures).

(c) Useful Aggregation of Financial Statement Information
Application guidance has been established for determining whether financial information should be presented in the primary financial statements or in the notes. This change is expected to provide more detailed and useful information. Entities are required to provide more transparent information on operating expenses to help investors find and understand the information they use.

(3) Disclosure Initiative – Subsidiaries without Public Accountability: Disclosures (IFRS 19)
This new standard and its amendments simplify disclosure requirements for subsidiaries without public accountability and permit eligible subsidiaries to elect to apply this standard.

(4) Translation into a Presentation Currency in a Hyperinflationary Economy (Amendments to IAS 21 and IAS 29 Financial Reporting in Hyperinflationary Economies)
This amendment includes:
(a) Clarify that when a reporting entity’s functional currency is not that of a hyperinflationary economy, but its financial statements are translated into the presentation currency of a hyperinflationary economy, its operating results and financial position shall be translated using the closing exchange rate at the date of the most recent statement of financial position.
(b) Under the above circumstances, if the presentation currency subsequently ceases to be that of a hyperinflationary economy, the reporting entity shall not restate prior-period financial statement amounts.

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.
(Continued)
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(c) When both the functional currency and the presentation currency are those of a hyperinflationary economy, the reporting entity shall apply the relevant accounting treatment in accordance with paragraph 34 of IAS 29.

For the standards or interpretations issued by the IASB but not yet endorsed by the FSC, the actual effective dates will be subject to the regulations set by the FSC. The Company is currently assessing the potential impact of a new standard or amendment (2) and cannot reasonably estimate its impact at this time. The remaining new or amended standards and interpretations are not expected to have a significant impact on the Group.

IV. Summary of Significant Accounting Policies

Statement of Compliance

The Company’s financial statements for the years ended December 31, 2025 and 2024 have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively the “IFRSs”) endorsed and issued into effect by the Financial Supervisory Commission (FSC) of the Republic of China.

Basis of Preparation

The Company prepared the parent company-only financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers. As per Article 21 of the Regulations Governing the Preparation of Financial Reports by Securities Issuers, the current profit or loss and other comprehensive income in the parent company-only financial statements are the same as the share of the current profit or loss and other comprehensive income attributable to the owners of the parent company in the financial statements prepared on a consolidated basis; and the owner’s equity in the parent company-only financial statements is the same as the equity attributable to the owners of the parent company in the financial statements prepared on a consolidated basis. Thus, the investment in subsidiaries is presented as “investments using the equity method” in the parent company-only financial statements, with necessary evaluation adjustments made.

The parent company-only financial statements have been prepared on the historical cost basis except for the financial instruments at fair value. The parent company-only financial statements are presented in thousands of NT dollars (NTD), unless otherwise specified.

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC. (Continued)
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Foreign Currencies

The Company’s parent company-only financial statements are presented in NTD, the Company’s functional currency.

Transactions in foreign currencies are recognized at the exchange rates prevailing on the transaction dates. At the end of each reporting period, foreign-currency monetary items are translated using the closing rate of that date; foreign-currency non-monetary items measured at fair value are translated using the exchange rates at the date when the fair value is determined; foreign-currency non-monetary items measured at historical cost are translated using the exchange rates at the date of the original transaction.

Except as stated below, exchange differences arising from settlement or translation of monetary items are recognized in profit or loss for the period in which they occur:

(1) Regarding foreign-currency borrowings incurred to acquire an eligible asset, if the resulting exchange difference is regarded as an adjustment to interest costs, it is part of the borrowing cost and is capitalized as the cost of the asset.

(2) Foreign-currency items to which IFRS 9 “Financial Instruments” applies are handled in accordance with the accounting policies for financial instruments.

(3) Regarding monetary items that form part of a reportable entity’s net investment in foreign operations, exchange differences arising therefrom are initially recognized in other comprehensive income and reclassified from equity to profit or loss when the net investment is disposed of.

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

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.
(Continued)
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Translation of Foreign-currency Financial Statements

Each of the Company’s foreign operations determines its own functional currency and measures its financial statements in the functional currency accordingly. When the parent company-only financial statements were prepared, the assets and liabilities of the foreign operations were translated into NTD at the closing exchange rate on the balance sheet date. Income and expense items are translated at the average exchange rate for the period. Any exchange differences arising from translation were recognized in other comprehensive income. When the foreign operations were disposed of, the cumulative exchange differences previously recognized in other comprehensive income as an independent component of equity were reclassified from equity to profit or loss upon recognition of the gains or losses on disposal. When control, significant influence, or joint control over foreign operations is lost with some equity retained, it is still treated as disposal.

Regarding the partial disposal of a subsidiary with foreign operations (over which the control is not lost), the cumulative exchange difference recognized in other comprehensive income is adjusted in proportion through “investment using the equity method” and is not recognized in profit or loss. The partial disposal of an affiliate or a jointly controlled entity with foreign operations (over which the significant influence or joint control is not lost), when part of the disposal includes affiliated enterprises or jointly controlled entities of foreign operating institutions, the cumulative exchange difference is reclassified to profit or loss in proportion.

The goodwill generated from the Company’s acquisition of foreign operations and the fair value adjustments made to the carrying amounts of their assets and liabilities are treated as assets and liabilities of those foreign operations and reported in their functional currency.

Criteria for Classification of Current and Non-current Assets and Liabilities

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

(1) Assets expected to be realized in the normal operating cycle or intended to be sold or consumed.
(2) Assets held primarily for the purpose of trading;
(3) Assets expected to be realized within 12 months after the balance sheet date;
(4) Cash or cash equivalents, excluding assets restricted from being exchanged or used to settle liabilities for at least 12 months after the balance sheet date.

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.
(Continued)
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

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

(1) Liabilities expected to be settled in the normal operating cycle;
(2) Liabilities held primarily for the purpose of trading;
(3) Liabilities expected to be settled within 12 months after the balance sheet date;
(4) Does not have the right to defer settlement of the liability for at least twelve months after the end of the reporting period.

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, demand deposits, and short-term time deposits and investments that are highly liquid and readily convertible into a fixed amount of cash at any time with little risk of value changes.

Financial Instruments

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

Financial assets and financial liabilities within the scope of IFRS 9 “Financial Instruments” are measured at fair value upon initial recognition; the transaction costs that are directly attributable to the acquisition or issuance of financial assets and financial liabilities (except financial assets and financial liabilities classified as at fair value through profit or loss) are added to or deducted from the fair values of the financial assets and financial liabilities.

(1) Recognition and Measurement of Financial Assets

All of the Company’s regular way purchases and sales of financial assets are recognized and derecognized using trade date accounting.

The Company classifies financial assets as those subsequently measured at amortized cost, at fair value through other comprehensive income, or at fair value through profit or loss based on the two bases below:

A. Business model for financial asset management
B. Contractual cash flow characteristics of financial assets

Financial Assets at Amortized Cost

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.
(Continued)
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Financial assets that meet both of the following conditions are measured at amortized cost and presented as notes receivable, accounts receivable, financial assets measured at amortized cost, and other receivables on the balance sheet:

A. Business model for financial asset management: Holding financial assets to collect contractual cash flows.
B. Contractual cash flow characteristics of financial assets: The cash flow is entirely the payment for principal and the interest on the outstanding principal.

Such financial assets (excluding those for hedging) are subsequently measured at the amortized cost (the amount measured upon initial recognition, less the principal repaid, plus or less the cumulative amortization of the differences between the initial amount and the due amount (the effective interest approach adopted), with the allowance for losses adjusted). The gain or loss is recognized in profit or loss upon derecognition, through the amortization process, or when an impairment gain or loss is recognized.

Interest accrued using an effective interest method (effective interest rate multiplied by the total book value of a financial asset) or based on the situations below is recognized in profit or loss:

A. In the case of a credit-impaired financial asset purchased or created, the credit-adjusted effective interest rate is multiplied by the amortized cost of the financial asset;
B. If it is not the case but subsequently becomes credit-impaired, the effective interest rate is multiplied by the amortized cost of the financial asset.

(2) Recognition and Measurement of Financial Asset Impairment

The Company’s investments in debt instruments at fair value through other comprehensive income and financial assets at amortized cost are recognized as expected credit losses with an allowance for losses provided. An allowance for losses on an investment in a debt instrument measured at fair value through other comprehensive income is recognized in other comprehensive income without reducing the carrying amount of the investment.

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.
(Continued)
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

The Company measures expected credit losses in a way that reflects the following:

A. An unbiased, probability-weighted amount determined by evaluating each potential outcome
B. Time Value of Money
C. Reasonable and Corroborative Information Related to Past Events, Present Conditions, and Future Economy Forecasts (which can be accessed without an excessive cost or investment on the balance sheet date)

The methods of measuring an allowance for losses are specified below:

A. Measured at 12-month expected credit losses: Including financial assets with the credit risk not increasing significantly since the initial recognition or those with an estimated low credit risk on the balance sheet date. Also, it includes an allowance for the lifetime expected credit losses during the prior reporting period, without meeting the indicator that the credit risk has significantly increased since the initial recognition on the balance sheet date of this period.
B. Measured at lifetime expected credit losses: Including financial assets with the credit risk increasing significantly since the initial recognition or credit-impaired financial assets purchased or created.
C. For accounts receivable or contract assets arising from transactions within the scope of IFRS 15, the Company measures an allowance for lifetime expected credit losses.
D. For lease receivables arising from transactions within the scope of IFRS 16, the Company measures the loss allowance at an amount equal to lifetime expected credit losses.

On each balance sheet date, the Company evaluates whether the credit risk of a financial instrument has increased significantly after the initial recognition by comparing the default risk of the financial instrument on the balance sheet date and the initial recognition date. Please refer to Note 12 for relevant credit risk information.

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.
(Continued)
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(3) Derecognition of Financial Assets

The Company derecognizes a financial asset held in the case of any of the following circumstances:

A. The contractual rights to receive the cash flows from the financial asset have expired.
B. A financial asset is transferred with all the risks and rewards attached to the ownership of the asset substantially transferred to the counterparty.
C. All the risks and rewards attached to the ownership of the asset are neither substantially transferred nor retained, but the control over the asset is transferred.

When a financial asset as a whole is derecognized, the difference between its carrying amount and the sum of the consideration received or receivable plus any cumulative gain or loss recognized in other comprehensive income is recognized in profit or loss.

(4) Financial Liabilities and Equity Instruments

Classification of Liabilities and Equity

Liabilities and equity instruments issued by the Company are classified as financial liabilities or equity as per the substance of the agreement and the definitions of financial liabilities and equity instruments.

Equity Instruments

Equity instrument refers to any contract that demonstrates the Company's remaining interest in assets less all of its liabilities. Equity instruments issued by the Company are recognized at the acquisition prices, less the direct issuance cost.

Hybrid Instruments

The Company recognizes the components of financial liabilities and equity for the convertible corporate bonds issued in accordance with the contractual terms. Also, for the issued convertible corporate bonds, before the equity elements are distinguished, whether the economic characteristics and risks of the embedded call and put options are closely related to the main debt products are assessed.

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.
(Continued)
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

For the liability without derivatives involved, after the market interest rate assessment of the non-convertible bonds with similar fair values, the amount of the liability is classified as financial liabilities at amortized cost before conversion or redemption. Regarding the embedded derivatives with their economic characteristics and risks not closely related to the master contract (such as the embedded repurchase right and the redemption right with the exercise price confirmed to be unable to be almost equal to the amortized cost of the debt products on each exercise date), except for the equity component, they are classified as a liability component and measured at fair value through profit or loss after the balance sheet date. The amount of the equity component is determined at the fair value of the convertible corporate bonds less the liability component, and its book value is not remeasured in the period following the balance sheet date. If the issued convertible corporate bond does not include an equity element, it is handled as a hybrid instrument in accordance with IFRS 9.

Transaction costs are allocated to the liability and the equity components in proportion to the percentage of the initially recognized convertible corporate bonds allocated to the liability and the equity components.

When a holder of the convertible corporate bonds requests the exercise of their conversion right before the convertible corporate bonds matures, the carrying amount of the liability component shall be adjusted to the carrying amount that should have been upon conversion as the basis for accounting for ordinary shares issued.

Financial Liability

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

Financial Liabilities at Amortized Cost

Financial liabilities measured at amortized cost, including payables and borrowings, are subsequently measured using the effective interest rate method after the initial recognition. When financial liabilities are derecognized and amortized with the effective interest rate method, the relevant gains or losses and amortizations are recognized in profit or loss.

The amortized cost is calculated with the discount or premium and the transaction cost upon acquisition taken into account.

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.
(Continued)
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Derecognition of Financial Liabilities

When the obligations of financial liabilities are lifted, canceled, or expire, the financial liabilities are derecognized.

When the Company exchanges debt instruments with materially different terms with a creditor or significantly changes all or part of the terms of the existing financial liabilities (financial difficulties or not), the initial liabilities are derecognized and new liabilities are recognized. When a financial liability is derecognized, the difference between its carrying amount and the total consideration paid or payable (including the non-cash assets transferred or the liabilities assumed) is recognized in profit or loss.

(5) Offset of Financial Assets and Liabilities

Financial assets and financial liabilities can only be offset and presented in the balance sheet as a net amount when the recognized amount is legally entitled to be offset with an intention to be settled in a net amount or realize the asset and settle the liability at the same time.

8. Derivatives

The derivatives held or issued by the Company are used to hedge the exchange rate risk, the interest rate risk, and commodity price risk. Among them, those designated to effectively hedge risks are recognized as derivative assets or liabilities for hedging purposes in the balance sheet; the remaining not designated to effectively hedge risks are presented in the balance sheet as financial assets or financial liabilities at fair value through profit or loss.

A derivative is initially recognized at fair value on the date the derivative contract is signed and subsequently measured at fair value. When the fair value of the derivative is a positive figure, it is a financial asset; a negative figure, it is a financial liability. Any change in the fair value of the derivative is recognized directly in profit or loss; however, those with cash flow hedging involved and net investment in foreign operations with effective hedging are recognized under equity.

Where a master contract is about a non-financial asset or financial liability, if the economic characteristics and risks of the derivative embedded in the master contract are not closely related to the master contract, and the master contract is not measured at fair value through profit or loss, the embedded derivative should be regarded as an independent derivative.

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.
(Continued)
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Fair Value Measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. It is assumed that the sale of the asset or transfer of the liability takes place in one of the markets below when the fair value is measured:

(1) The principal market for the asset or liability, or
(2) If there is no principal market, the most favorable market for the asset or liability.

The principal or most favorable market should be accessible for the Company to trade.

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

The fair value of a non-financial asset is measured based on market participants' ability to make the most of or put the asset to the best use or by selling the asset to another market participant who will make the most of or put the asset to the best use to generate economic benefits.

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

Inventories

Inventories are valued at the lower of cost or net realizable value with an item-by-item comparison method.

Costs refer to the costs incurred in bringing inventories to a condition and location ready for sale or production:

Raw materials are valued at the actual purchase cost with a weighted average method.

Finished goods and works-in-process include direct raw materials, labor, and fixed manufacturing overhead apportioned based on normal production capacity, excluding the borrowing costs.

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.
(Continued)
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

The net realizable value is calculated based on the estimated selling price, less the costs and selling expenses required till completion in the ordinary course of business.

The provision of services is handled in accordance with IFRS 15 outside the scope of inventories.

Investments Using the Equity Method

As per Article 21 of the Regulations Governing the Preparation of Financial Reports by Securities Issuers, the Company’s investments in its subsidiaries are presented as “investments using the equity method” with necessary valuation adjustments made, to bring the current profit or loss and other comprehensive income in the parent company-only financial statements to be the same as the share of the current profit or loss and other comprehensive income attributable to the owners of the parent company in the financial statements prepared on a consolidated basis; and the owner’s equity in the parent company-only is the same as the equity attributable to the owners of the parent company in the financial statements prepared on a consolidated basis. Such adjustments are mainly made to the treatment of investments in subsidiaries in the consolidated financial statements in accordance with IFRS 10 “Consolidated Financial Statements” and the differences in the application of IFRS by reportable entities at different levels, while being debited to or credited from “investments using the equity method,” “share of profit or loss of subsidiaries, affiliates, or joint ventures using the equity method,” or “share of other comprehensive income of subsidiaries, affiliates, or joint ventures using the equity method.”

The Company’s investments in affiliates are accounted for using the equity method, except for assets that are classified as assets held for sale. Affiliates refer to those on which the Company has significant influence. A joint venture refers to a type of arrangement whereby the Company has rights to the net assets of the joint arrangement (those with joint control).

Under the equity method, investments in associates or joint ventures are recorded on the balance sheet at cost plus the Company’s proportionate share of post-acquisition changes in the net assets of the associate or joint venture based on the Group’s ownership percentage. When the carrying amount of an investment in an associate or joint venture and other related long-term interests have been reduced to zero under the equity method, additional losses and liabilities are recognized to the extent that legal or constructive obligations have been incurred or payments have been made on behalf of the associate. Unrealized profits and losses resulting from transactions between the Company and its associates or joint ventures are eliminated to the extent of the Company’s interest in the associate or joint venture.

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.
(Continued)
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

When changes in the equity of an associate or joint venture do not result from profit or loss and other comprehensive income items and do not affect the Company's ownership percentage, the Company recognizes its proportionate share of the related ownership interest changes. The capital surplus thus recognized is reclassified to profit or loss on a pro-rata basis when the associate or joint venture is subsequently disposed of.

When an associate or joint venture issues new shares and the Company does not subscribe in proportion to its ownership percentage, resulting in a change in the Company's ownership interest and a corresponding increase or decrease in the Company's share of the net assets of the associate or joint venture, such increase or decrease is adjusted accordingly through "Capital Surplus" and "Investments Accounted for Using Equity Method." When the proportion of investment decreases, the relevant items previously recognized in other comprehensive income will be reclassified to profit or loss or other appropriate accounts depending on the percentage of the decrease. The capital surplus recognized as described above is reclassified to profit or loss on a pro-rata basis when the associate or joint venture is subsequently disposed of.

The affiliates' or joint ventures' financial statements are prepared for the same reporting period as the Company's and adjusted to align their accounting policies with the Company's.

At the end of each reporting period, the Company determines whether there is any objective evidence of impairment of its investments in associates or joint ventures in accordance with IAS 28 "Investments in Associates and Joint Ventures." If objective evidence of impairment exists, the Company calculates the impairment amount as the difference between the recoverable amount and the carrying amount of the associate or joint venture in accordance with IAS 36 "Impairment of Assets," and recognizes this amount in profit or loss related to the associate or joint venture. If the value in use of the investment is adopted for the above recoverable amount, the Company determines the relevant values in use based on the estimates below:

(1) The Company's share of the present value of the estimated future cash flows expected to be generated by an associate or joint venture includes cash flows from the operations of the associate or joint venture and the proceeds from the ultimate disposal of the investment; or
(2) The present value of the estimated future cash flows from dividends from the investment that the Company expects to receive and the proceeds from the disposal of the investment.

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.
(Continued)
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Since goodwill included in the carrying amount of an investment in an associate or joint venture is not separately recognized, it is not subject to the impairment testing requirements for goodwill under IAS 36 “Impairment of Assets.”

When significant influence over an associate or joint control over a joint venture is lost, the Company measures and recognizes any retained investment at its fair value. Upon loss of significant influence or joint control, the difference between the carrying amount of the investment in the associate or joint venture and the fair value of the retained investment plus proceeds from disposal is recognized in profit or loss. Also, when an investment in an affiliate becomes an investment in a joint venture, or when an investment in a joint venture becomes an investment in an affiliate, the Company continues to adopt the equity method without remeasuring the retained equity.

12. Property, plant and equipment

Property, plant and equipment are accounted for on the basis of acquisition cost and recognized after accumulated depreciation and impairment are deducted. The above costs include the cost of dismantling or removing of property, plant and equipment and restoring the location, and necessary interest expenses arising from unfinished projects. Each component of property, plant and equipment is depreciated separately if it is significant. When a major component of property, plant and equipment needs to be replaced regularly, the Company regards it as an individual asset and recognizes it separately with a specific useful life and depreciation method. The carrying amount of the replaced part should be derecognized in accordance with the requirement for derecognition under IAS 16 “Property, Plant and equipment.” If a major examination or repair cost meets the criteria for recognition, it is regarded as a replacement cost and recognized as part of the carrying amount of plant and equipment, while other repair and maintenance expenses are recognized in profit or loss.

Assets below are depreciated on a straight-line basis over the estimated useful lives:

Assets	Useful Life
Property and Buildings	5–50 years
Machine equipment	3–15 years
Transportation Equipment	5–10 years
Office Equipment	3–10 years
Leasehold Improvements	3–10 years
Miscellaneous Equipment	3–20 years

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.

(Continued)

(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

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

The residual value, years of useful life, and depreciation method of property, plant and equipment are assessed at the end of each fiscal year. If the expected value is different from the previous estimate, the change is considered a change in accounting estimates.

13. Investment Property

The Company's self-owned investment property is initially measured at cost, including transaction cost of the property. The carrying amount of investment property includes the cost of repairing or adding to the existing investment property under the condition that the cost can be recognized; however, the repair or maintenance costs that usually occur on a daily basis are not included as part of the cost. After initial recognition, except for those meeting the criteria for being classified as those held for sale (or included in the disposal group classified as held for sale) in accordance with IFRS 5 "Non-current Assets Held for Sale and Discontinued Operations"; as per IAS 16 "Property, Plant and equipment" regarding such a situation, if such an asset is held by the lessee as a right-of-use asset and is not held for sale as per IFRS 5, it is handled in accordance with IFRS 16.

Assets below are depreciated on a straight-line basis over the estimated useful lives:

Assets	Useful Life
Buildings	10–20 years

Investment property is derecognized and recognized in profit or loss when it is disposed of or will never be used again without future economic benefits expected to be generated from the disposal.

The Company decides to transfer an asset in or out of investment property depending on the actual use of the assets.

When a property meets or no longer meets the definition of investment property with evidence showing that the purpose has changed, the Company will reclassify the property as investment property or transfer it out of investment property.

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.
(Continued)
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Leasing

The Company assesses whether or not an arrangement is (or includes) a lease arrangement on the inception of the agreement. If an agreement transfers control over the use of an identified asset for a period of time in exchange for consideration, the agreement is (or includes) a lease arrangement. In order to assess whether the agreement transfers control over the use of the identified asset for a period of time, the Company assesses whether it meets both of the following conditions during the entire period of use:

(1) Obtaining the right to almost all economic benefits from the use of the identified asset; and
(2) The right to direct the use of the identified asset.

For the agreement that belongs to (or includes) a lease arrangement, the Company treats each lease component in the agreement as a separate lease and treats it separately from the non-lease component in the agreement. For the agreement that includes one lease component and one or more additional lease or non-lease components, the Company adopts the relative standalone price of each lease component and the aggregate standalone prices of the non-lease components as the basis to distribute the consideration in the agreement to the lease component. The relative standalone prices of lease and non-lease components are determined on the basis of the prices charged by the lessor (or similar suppliers) for the components (or similar components). If an observable standalone price is not readily available, the Company maximizes the use of observable information to estimate the standalone price.

The Company as a Lessee

In addition to meeting and selecting short-term leases or leases of low-value underlying assets, when the Company is the lessee of a lease contract, all leases are recognized in right-of-use assets and lease liabilities.

The Company measures the lease liabilities on the inception date based on the present value of the lease payments not yet paid on that date. If the implied interest rate of the lease is easily determined, the lease payments will be discounted to their present value using that interest rate. If such interest rate is not easily determined, the incremental borrowing rate will be used. On the inception date, the lease payments included in the lease liabilities include the following payments related to the right to use the underlying assets during the lease period and not yet paid on that date:

(1) Fixed payment (including substantive fixed payment) less any lease incentives that can be collected;

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.
(Continued)
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(2) Lease payment that depends on changes in an index or rate (using the index or rate on the inception date for initial measurement);
(3) The amount expected to be paid by the lessee under the residual value guarantee;
(4) The exercise price of the purchase option if the lessee is reasonably certain that the option will be exercised.
(5) The penalty payable for the termination of a lease, if there is a sign that the lessee, in the lease period, will exercise the option of terminating the lease.

After the inception date, the Company measures the lease liabilities at amortized cost, and increases the carrying amount of the lease liabilities using the effective interest method to reflect the interest on the lease liabilities; the lease payments reduce the carrying amount of the lease liabilities.

On the inception date, the Company measures the right-of-use assets at cost. The cost of the right-of-use assets includes:

(1) The monetary amount of the lease liability initially measured;
(2) Any lease payments made on or before the inception date less any lease incentives received;
(3) Any initial direct costs incurred by the lessee; and
(4) An estimate of costs to be incurred in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease.

Subsequent measurement of the right-of-use assets is presented after the cost less the accumulated depreciation and accumulated impairment loss, i.e. the cost model is applied to measure the right-of-use assets.

If the ownership of the underlying asset is transferred to the Company when the lease period expires, or if the cost of the right-of-use assets reflects that the Company will exercise the call option, the right-of-use assets will be depreciated from the commencement date to the end of the useful life of the underlying asset. Otherwise, the Company depreciates the right-of-use assets from the inception date to the end of the useful life of the right-of-use assets or to the expiration of the lease period, whichever is earlier.

The Company applies IAS 36 Impairment of Assets to determine whether a right-of-use asset is impaired and to deal with any identified impairment losses.

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.
(Continued)
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

In addition to meeting and selecting short-term leases or leases of low-value underlying assets, the Company presents right-of-use assets and lease liabilities in the balance sheet, and presents lease-related depreciation expenses and interest expenses separately in the statement of comprehensive income.

For short-term leases and leases of low-value underlying assets, the Company chooses to adopt the straight-line basis or another systematic basis to recognize the lease payments related to said leases in expenses over the lease term.

The Company as a Lessor

The Company classifies each of its leases as operating leases or financial leases on the contract inception date. If a lease transfers almost all the risks and rewards attached to the ownership of the underlying asset, it is classified as a financial lease; if it does not transfer said matters, it is classified as an operating lease. On the inception date, the Company recognizes the assets held under the finance leases in the balance sheet and presents them as financial lease receivables based on the net lease investment.

For agreements that include lease components and non-lease components, the Company applies IFRS 15 to distribute the consideration in the agreements.

The Company recognizes lease payments from operating leases as rental income on a straight-line basis or another systematic basis. For operating leases, lease payments that are not dependent on change in some index or rate are recognized as rental income when they occur.

15. Intangible Assets

Intangible assets that are acquired separately are initially measured at cost. The cost of intangible assets acquired through a business combination is the fair value at the acquisition date. After initial recognition of intangible assets, the carrying amount is the amount of the cost less accumulated amortization and accumulated impairment losses. Internally generated intangible assets that do not meet the recognition criteria shall not be capitalized, but shall be recognized in profit or loss when they occur.

The useful life of intangible assets is divided into limited and indefinite useful life.

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC. (Continued)

(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Intangible assets with a limited useful life are amortized over their useful life, and an impairment test is performed when there are signs of impairment. The amortization period and method of intangible assets with limited useful life are reviewed at least at the end of each fiscal year. If the estimated useful life of an asset is different from the previous estimate, or the expected pattern of future economic benefit consumption has changed, the amortization method or period will be adjusted and considered a change in accounting estimates.

Intangible assets with indefinite useful lives are not amortized, but impairment tests are conducted to each asset or based on the level of cash-generating units each year. Intangible assets with indefinite useful lives are assessed in each period whether there are events and circumstances that continue to support that the asset's useful life is still indefinite. If the useful life is changed from indefinite to limited, the application will be applied prospectively.

The profit or loss arising from the derecognition of an intangible asset is recognized as profit or loss.

The Company's accounting policy for intangible assets is summarized as follows:

	Patents	Computer Software	Other Intangible Assets
Useful Life	13–20 years	3–5 years	2–10 years
Amortization Method	Straight-line	Straight-line	Straight-line
	Method	Method	Method
Internal Generation or External Acquisition	External	External	External
	Acquisition	Acquisition	Acquisition

Impairment of Non-financial Assets

The Company at the end date of each reporting period assesses whether all assets subject to IAS 36 "Impairment of Assets" are showing signs of impairment. If there is any indication of impairment or an impairment test is required for an asset on a regular basis each year, the Company tests the individual asset or the cash-generating unit to which the asset belongs. If the carrying amount of an asset or the cash-generating unit to which the asset belongs is greater than its recoverable amount in an impairment test, the impairment loss is recognized. The recoverable amount is the higher of the net fair value or value in use.

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.
(Continued)
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

At the end of each reporting period, the Company assesses assets other than goodwill to see whether there are indications that the previously recognized impairment losses may no longer exist or may be decreased. In the event of such an indication, the Company estimates the recoverable amount of the asset or cash-generating unit. If the recoverable amount is increased due to the change in the estimated service potential of the asset, the impairment amount is reversed. However, the reversed carrying amount shall not exceed that before recognizing impairment loss and after deducting depreciation or amortization.

The cash-generating unit or group to which the goodwill belongs, regardless of whether there are signs of impairment, is subject to impairment tests on an annual basis. If the result of an impairment test needs to be recognized as an impairment loss, the goodwill will be deducted first, and the amount after deduction will be allocated to other assets other than goodwill based on the relative proportion of the carrying amount. Once the impairment of goodwill is recognized, it shall not be reversed for any reason thereafter.

The impairment loss and reversal amount of the continuing operations are recognized in profit or loss.

Provisions

Provisions are recognized when there is a present legal or constructive obligation as a result of past events, it is probable that an outflow of economic resources will be required to settle the obligation, and the amount of the obligation can be reliably estimated. When the Company expects that some or all of the provisions can be reimbursed, only when the reimbursement is almost completely certain, it will be recognized as a separate asset. If the time value of money has a material impact, the provisions discounted at the current pre-tax interest rate can appropriately reflect the specific risks of the liability. When liability is discounted, the increase in the amount of liability due to the passage of time is recognized as a borrowing cost.

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.
(Continued)
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Recognition of Revenue

The Company’s revenue from customer contracts mainly include the sale of goods and provision of services. The accounting treatments are specified below:

Product Sales

The Company manufactures and sells products and recognizes revenue when the promised products are delivered to the customer, and the customer obtains control over them (i.e. the customer’s ability to direct the use of the products and obtain almost all the remaining benefits from the products). Its main products are connectors and wires or cables, and sales revenue is recognized at the prices stated in the contracts.

The credit period for the Company’s products sold is 90 days. All contracts are recognized as accounts receivable when control over the products is transferred, with an unconditional right to receive consideration. Such accounts receivable are usually short-term and do not contain major financial components.

Provision of Services

The Company mainly provides processing services for connectors. Such services are individually priced or negotiated and recognized in revenue when the promised processed products are delivered to a customer and the customer obtains the control over them (i.e. the customer’s ability to guide the use of the products and obtain almost all the remaining benefits of the products).

Borrowing Costs

Borrowing costs that can be directly attributable to the acquisition, construction, or production of qualified assets are capitalized as part of the costs of the assets. All other borrowing costs are recognized as expenses in the period in which they are incurred. Borrowing costs include interest and other costs incurred in relation to borrowings.

Post-employment Benefit Plan

The pension plan for the Company’s employees applies to all full-time employees. The employee pension fund is fully contributed to the Labor Pension Reserves Committee and deposited into the pension fund account. The aforementioned pension is deposited in the name of the Labor Pension Reserves Committee, which is completely separate from the Company, so it is not included in the parent company-only financial statements in the preceding paragraph. The pension plan for employees at overseas subsidiaries is handled in accordance with local laws and regulations.

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.
(Continued)
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

For the defined contribution pension plan, the monthly pension payable rate of the Company shall not be less than 6% of the employees’ monthly salary, and the amount of the provision shall be recognized in current expenses. Overseas subsidiaries make contributions at specified local rates and recognize them in current expenses.

Income Tax

Income tax expenses (benefits) refer to the sum related to current income tax and deferred tax included in the current profit or loss.

Current Income Tax

The current income tax liabilities (assets) related to the current and prior periods are measured at the legislated or substantially legislated tax rates and tax laws at the end of the reporting period. The current income tax related to the items recognized in other comprehensive income or directly recognized in the equity is recognized in other comprehensive income or equity instead of being recognized in the profit or loss

The additional corporate income tax on undistributed earnings is recognized as income tax expense on the date the shareholders’ meeting resolves the appropriation of earnings.

Deferred Tax

The deferred tax is calculated according to the temporary difference between the taxable amount of assets and liabilities and the carrying amount on the balance sheet at the end of the reporting period.

Except for the following two items, all taxable temporary differences are recognized as deferred income tax liabilities:

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

B. The taxable temporary difference arising from the investment in subsidiaries, associates, and joint equity. Also, the timing of reversal is controllable, and it is not likely to be reversed in the foreseeable future;

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.
(Continued)
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Except for the following two items, deductible temporary difference and deferred tax assets arising from the taxable losses and income tax credit are recognized within the range of probable future taxable income:

A. Deductible temporary differences associated with the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither accounting profit nor taxable income (tax loss), and does not give rise to equal taxable and deductible temporary differences at the time of the transaction;

B. Deductible temporary differences associated with investments in subsidiaries, associates, and interests in joint arrangements are recognized only to the extent that it is probable that they will reverse in the foreseeable future and that there will be sufficient taxable income available against which the temporary differences can be utilized when they reverse.

Deferred tax assets and liabilities are measured at the tax rate of the expected asset realization or in the period in which the liability is settled. The tax rate is based on the legislated or substantially legislated tax rates and tax laws at the end of the reporting period. The measurement of deferred tax assets and liabilities reflects the tax consequences arising from the manner in which the asset is expected to be recovered or the book value of the liability is settled at the end of the reporting period. If the deferred tax is related to items that are not included in profit or loss, it will not be recognized in profit or loss but will be recognized in other comprehensive income according to the relevant transactions or directly recognized in equity. Deferred tax assets are reexamined and recognized at the end of each reporting period.

Deferred tax assets and liabilities can be legally offset against each other only in the current period, and the deferred tax is related to the same taxation entity and is related to the income tax levied by the same taxation authority.

In accordance with the temporary exemption provisions of "International Tax Reform – Pillar Two Model Rules (Amendments to IAS 12)," deferred tax assets and liabilities related to Pillar Two income taxes shall not be recognized, and related information shall not be disclosed.

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.
(Continued)
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

V. Critical Accounting Judgments, Assumptions, and Key Sources of Estimation Uncertainty

When the parent company-only financial statements are prepared by the Company, management must make judgments, estimates, and assumptions at the end of the reporting period, which will affect the disclosures of income, expenses, assets and liabilities, and contingent liabilities. However, the uncertainty of these significant assumptions and estimates may result in a significant adjustment to the book value of an asset or liability in the future period.

Estimation and Assumption

The main source of information on the estimation and assumption with uncertainty at the end of the reporting period has significant risks that result in significant adjustments to the carrying amounts of assets and liabilities in the next fiscal year. The explanations are given as follows:

Inventories

The net realizable value of inventories is estimated based on the most reliable evidence of the expected realizable number of inventories available upon estimation by taking into account the fact that the inventory may be damaged or wholly or partially obsolete, or the selling price has dropped. Please refer to Note 6 for details.

Fair Values of Financial Instruments

When the fair values of financial assets and financial liabilities recognized in the balance sheet cannot be obtained from the active market, the fair value will be determined using evaluation techniques, including the income approach (such as cash flow discount model) or market approach. The changes in the assumptions of said approaches will affect the fair value of the financial instruments reported. Please refer to Note 12 for details.

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.
(Continued)
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Income Tax

The uncertainty of income tax exists in the interpretation of complex tax regulations and the amount and timing of future taxable income. Due to a wide range of international business relationships and the long-term and complexity of contracts, the differences between actual results and assumptions made, or changes in such assumptions in the future, may cause the booked income tax benefits and expenses to be adjusted in the future. The recognition of income tax is a reasonable estimation made according to the possible audit results of the local tax authorities of the countries in which the Company operates. The amount recognized is based on different factors, such as previous tax audit experience and the difference in tax law interpretation between the tax entity and the tax authority. The difference in interpretation may result in a variety of issues due to the local situation of the country where an individual enterprise of the Company operates.

The carryforwards of the taxable loss and income tax credit and deductible temporary differences are recognized as deferred tax assets within the range of probable future taxable income or taxable temporary differences. The amount of the deferred income tax assets to be recognized is estimated according to the possible timing and level of the future taxable income and taxable temporary difference, and also the future tax planning strategy.

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.
(Continued)
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

VI. Description of Significant Accounting Items

Cash and Cash Equivalents
| | 114.12.31 | 113.12.31 |
| --- | --- | --- |
| Cash on Hand | $2,149 | $2,832 |
| Time Deposits (note) | 622,113 | 535,523 |
| Demand Deposits | 758,262 | 1,341,367 |
| Cash Equivalents | 299,801 | 364,396 |
| Total | $1,682,325 | $2,244,118 |

Note: Refers to items with maturities of three months or less from the contract date, and that are readily convertible into known amounts of cash with insignificant risk of changes in value.

The Company has not pledged any cash and cash equivalents as collateral.

Financial Assets at Fair Value Through Profit or Loss – current
| | 114.12.31 | 113.12.31 |
| --- | --- | --- |
| Mandatorily as at Fair Value Through Profit or Loss: | | |
| Funds | $709,702 | $521,528 |
| Stock | 163,071 | 1,893 |
| Total | $872,773 | $523,421 |

The Company did not provide financial assets at fair value through profit or loss as collateral.

Notes and Accounts Receivable (including from related parties)
| | 114.12.31 | 113.12.31 |
| --- | --- | --- |
| Notes Receivable | $26,639 | $26,256 |
| Less: Allowance for Losses | - | - |
| Subtotal | 26,639 | 26,256 |
| Accounts Receivable | 354,143 | 372,916 |
| Accounts Receivable – Related Parties | 105,879 | 151,301 |
| Less: Allowance for Losses | (1,816) | (4,226) |
| Subtotal | 458,206 | 519,991 |
| Total | $484,845 | $546,247 |

The Company’s notes receivable and accounts receivable have not been pledged as collateral.

The Company’s credit period to clients is usually 90 days. Please refer to Note 6.14 for information on the allowance for losses during 2025 and 2024; and Note 12.4 for relevant credit risk information.

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC. (Continued)

(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

4. Inventories

	2025/12/31	2024/12/31
Raw Materials	$235,030	$390,175
Works-in-Progress	89,990	95,408
Finished Goods	687,725	901,196
Goods in Transit	5,901	3,047
Total	$1,018,646	$1,389,826

For 2025 and 2024, the Company recognized inventory costs charged to cost of goods sold amounting to NTD 2,135,793 thousand and NTD 2,169,487 thousand, respectively, including inventory write-downs and obsolescence losses of NTD 37,395 thousand and NTD 193 thousand, respectively.

The above inventories were not provided as collateral.

5. Financial Assets at Fair Value Through Other Comprehensive Income

	2025/12/31	2024/12/31
Investments in Equity Instruments at Fair Value Through Other Comprehensive Income – non-current:
Cayman Engley Industrial Co., Ltd.	$39,832	$39,398
Chi Rui (Cayman) Holding Limited	35,984	37,439
Total	$75,816	$76,837

The Company did not provide financial assets at fair value through other comprehensive income as collateral.

The Company's dividend income related to equity instruments at fair value through other comprehensive income for the years ended December 31, 2025 and 2024 were as follows:

	2025	2024
Related to investments held at the end of the reporting period	$2,352	$1,918
Related to investments disposed during the reporting period	-	-
Dividend Income recognized during the reporting period	$2,352	$1,918

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.
(Continued)

(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

The Company disposed of and derecognized certain equity instrument investments measured at fair value through other comprehensive income in consideration of its investment strategy. The related information for 2025 and 2024 is as follows:

	2025	2024
Fair value at the date of derecognition	$2,599	$-
Cumulative (loss) gain on disposal reclassified from other equity to retained earnings	(6,205)	-

Investments Using the Equity Method

(1) The details of investments accounted for using the equity method by the Company are as follows:

Name of Investee	2025/12/31		2024/12/31
	Amount	Shareholding Ratio (%)	Amount	Shareholding Ratio (%)
Investments in Subsidiaries:
K.S.T. INTERNATIONAL HOLDINGS LTD.	$1,685,434	100.00%	$1,503,576	100.00%
IFCHIC INC.	63,950	100.00%	69,961	100.00%
TAIBON HOLDING LIMITED	90,927	100.00%	71,222	100.00%
K.S.TERMINALS USA LLC	27,082	100.00%	39,500	100.00%
JUNG PANG ENTERPRISE LTD.	11,277	100.00%	11,434	100.00%
K.S. TERMINALS TECHNOLOGY (THAILAND) CO., LTD.	26,539	100.00%	5,841	100.00%
KST TERMINALS (INDIA) PRIVATE LIMITED	3,315	70.00%	3,055	70.00%
KST TERMINALS (INDIA) MANUFACTURING PRIVATE LIMITED (Note 1)	79,071	100.00%	-	-
HONLEY AUTO. PARTS CO., LTD.	191,849	20.83%	226,066	21.10%
Yangde Technology Co., Ltd. (Note 2)	-	35.00%	-	35.00%
Total:	$2,179,444		$1,930,655

Note 1: KST TERMINALS (INDIA) MANUFACTURING PRIVATE LIMITED was approved for establishment on May 16, 2025.

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC. (Continued)

(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Note 2: The Company’s share of losses of Yangde Technology Co., Ltd. (hereinafter referred to as “Yangde”), and the Company’s lack of intention to provide further support to Yangde, resulted in the recognition of investment losses to reduce the carrying amount of the investment in Yangde to zero. For 2025 and 2024, unrecognized investment losses amounted to NTD 781 thousand and NTD 110 thousand, respectively. As of 2025 and 2024, cumulative unrecognized investment losses amounted to NTD 891 thousand and NTD 110 thousand, respectively.

(2) Investments in Subsidiaries and Associates

The investment in subsidiaries is presented as “investments using the equity method” in the parent company-only financial statements, with necessary evaluation adjustments made.

The share of profit or loss of subsidiaries, associates, and joint ventures recognized using the equity method for 2025 and 2024 and exchange differences arising from the translation of the financial statements of foreign operations are recognized based on the financial statements for the same periods audited by a CPA. The relevant details are as follows:

Investee	2025		2024
	Share of Profit or Loss of Subsidiaries, Associates, and Joint Ventures Recognized Using the Equity Method	Exchange differences arising from the translation of the financial statements of foreign operations	Share of Profit or Loss of Subsidiaries, Associates, and Joint Ventures Recognized Using the Equity Method	Exchange differences arising from the translation of the financial statements of foreign operations
K.S.T. INTERNATIONAL HOLDINGS LTD. (Note 1)	$167,634	$9,225	$250,422	$44,055
IFCHIC INC.	(3,066)	(2,945)	694	4,383
TAIBON HOLDING LIMITED	16,341	3,364	9,906	3,673
K.S.TERMINALS USA LLC	(10,673)	(1,745)	(9,376)	2,896
JUNG PANG ENTERPRISE LTD.	(157)	-	1,910	-
K.S. TERMINALS TECHNOLOGY (THAILAND) CO., LTD.	854	244	(3,375)	66
KST TERMINALS (INDIA) PRIVATE LIMITED	(2,881)	(465)	(641)	(395)
KST TERMINALS (INDIA) MANUFACTURING PRIVATE LIMITED	(1,280)	(19,114)	-	-
HONLEY AUTO. PARTS CO., LTD.	(34,729)	512	(37,996)	4,974
Yangde Technology Co., Ltd. (Note 2)	-	-	(2,774)	-
Total	$132,043	$(10,924)	$208,770	$59,652

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.

(Continued)

(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Note 1: The Company’s investee, K.S.T. INTERNATIONAL HOLDINGS LTD., remitted earnings of NTD 478,923 thousand (USD 14,800 thousand) in 2024, which were recognized as a reduction of investments accounted for using the equity method.

Note 2: The carrying amount of the Company’s investee, Yangde Technology Co., Ltd., was 0 in 2025; therefore, no share of profit or loss of investments accounted for using the equity method was recognized.

The Company’s investments in HONLEY AUTO.PARTS CO., LTD. and Yangde Technology Co., Ltd. are not material to the Company. The summarized financial information of the Company’s investments in associates, presented on an aggregated basis based on the Group’s share, is as follows:

	2025	2024
Net loss from continuing operations for the period	$(34,729)	$(40,770)
Other Income in the Current Period (net of tax)	512	4,974
Total Comprehensive Income in the Current Period	$(34,217)	$(35,796)

Property, plant and equipment

	2025/12/31	2024/12/31
Property, Plant and equipment For Self-use	$1,230,174	$1,323,415

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC. (Continued)

(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(1) Property, Plant and equipment For Self-use

	Land	Property and Buildings	Machine equipment	Transportation Equipment	Office Equipment	Leasehold Improvements	Other Equipment	Unfinished Construction Work and Equipment to be Tested	Total
Costs:
2025/01/01	$435,880	$933,087	$1,329,442	$37,718	$16,339	$10,493	$158,897	$4,349	$2,926,205
Addition	-	17,123	13,484	480	699	-	6,862	-	38,648
Disposal	(59,911)	-	(29,494)	(3,218)	(381)	(454)	(56)	-	(93,514)
Transfer	-	6,186	1,336	426	-	-	12,435	(4,349)	16,034
2025/12/31	$375,969	$956,396	$1,314,768	$35,406	$16,657	$10,039	$178,138	$-	$2,887,373
Depreciation and Impairment:
2025/01/01	$-	$331,575	$1,129,949	$31,559	$13,339	$10,493	$85,875	$-	$1,602,790
Depreciation	-	28,880	37,043	772	731	-	8,842	-	76,268
Disposal	-	-	(17,750)	(3,218)	(381)	(454)	(56)	-	(21,859)
2025/12/31	$-	$360,455	$1,149,242	$29,113	$13,689	$10,039	$94,661	$-	$1,657,199
Costs:
January 1, 2024	$435,880	$705,825	$1,310,737	$38,601	$16,270	$10,493	$126,094	$209,156	$2,853,056
Addition	-	11,740	9,151	691	91	-	14,426	14,136	50,235
Disposal	-	(7,420)	(8,834)	(2,952)	(83)	-	(1,734)	-	(21,023)
Transfer	-	222,942	18,388	1,378	61	-	20,111	(218,943)	43,937
2024/12/31	$435,880	$933,087	$1,329,442	$37,718	$16,339	$10,493	$158,897	$4,349	$2,926,205
Depreciation and Impairment:
January 1, 2024	$-	$314,631	$1,096,953	$32,793	$12,677	$9,314	$81,409	$-	$1,547,777
Depreciation	-	24,364	39,865	892	745	1,179	6,200	-	73,245
Disposal	-	(7,420)	(6,869)	(2,126)	(83)	-	(1,734)	-	(18,232)
2024/12/31	$-	$331,575	$1,129,949	$31,559	$13,339	$10,493	$85,875	$-	$1,602,790
Net Carrying Amount:
2025/12/31	$375,969	$595,941	$165,526	$6,293	$2,968	$-	$83,477	$-	$1,230,174
2024/12/31	$435,880	$601,512	$199,493	$6,159	$3,000	$-	$73,022	$4,349	$1,323,415

(2) The major components of the Company's buildings primarily consist of main structures, civil engineering works, electrical and fire safety equipment, and renovation projects, which are depreciated according to their useful lives ranging from 5 to 50 years.

(3) For details of property, plant and equipment provided as collateral, please refer to Note 8.

(4) The Company did not capitalize the interest accrued on the acquisition of property, plant and equipment during 2025 and 2024.

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.
(Continued)
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Short-term Borrowings
| | Interest Rate Range (%) | 2025/12/31 | Interest Rate Range (%) | 2024/12/31 |
| --- | --- | --- | --- | --- |
| Unsecured Bank Borrowings | 1.725%-1.850% | $400,000 | 1.725%-1.890% | $325,000 |

As of December 31, 2025, and December 31, 2024, the Company had approximately NTD 2,793,338 thousand and NTD 3,153,398 thousand, respectively, in unused short-term borrowing facilities.

Other Payables
| | 2025/12/31 | 2024/12/31 |
| --- | --- | --- |
| Salary and Year-end Bonuses Payable | $104,373 | $134,075 |
| Processing Costs Payable | 27,073 | 26,776 |
| Consumables Payable | 13,434 | 21,490 |
| Packaging Costs Payable | 11,720 | 12,702 |
| Remuneration Payable to Employees | 8,000 | 24,000 |
| Other Expenses Payable – others | 40,400 | 55,461 |
| Total | $205,000 | $274,504 |
Long-term Borrowings

Details of long-term borrowings as of December 31, 2025, and December 31, 2024 are as follows:

Creditor	2025/12/31	Interest Rate (%)	Repayment Period and Method
Secured Loan from Land Bank of Taiwan	$140,000	1.4321%	From July 17, 2023, to July 15, 2033, repayable in 84 monthly installments beginning August 15, 2026, with interest payable monthly.
Unsecured Loan from E.SUN Bank	66,458	1.5750%	From March 4, 2024, to November 15, 2026, repayable in 24 monthly installments beginning December 15, 2024, with interest payable monthly.
Unsecured Loan from E.SUN Bank	38,042	1.3750%	From November 29, 2021, to November 15, 2026, repayable in 24 monthly installments beginning December 15, 2024, with interest payable monthly.
Unsecured Loan from E.SUN Bank	33,000	1.3750%	From January 19, 2022, to November 15, 2026, repayable in 24 monthly installments beginning December 15, 2024, with interest payable monthly.
Secured Loan from E.SUN Bank	28,750	2.0200%	From October 30, 2020, to October 30, 2030, repayable in 32 quarterly installments beginning January 30, 2023, with interest payable monthly.
Unsecured Loan from E.SUN Bank	16,667	1.3750%	From September 28, 2021, to May 15, 2026, repayable in 24 monthly installments beginning June 15, 2024, with interest payable monthly.
Secured Loan from Land Bank of Taiwan	15,277	2.2300%	From August 12, 2014, to August 12, 2029, repayable in 144 monthly installments beginning September 30, 2017, with interest payable monthly.
Unsecured Loan from E.SUN Bank	7,412	1.5750%	From June 12, 2023, to May 15, 2026, repayable in 24 monthly installments beginning June 15, 2024,

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC. (Continued)

(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Creditor	2025/12/31	Interest Rate (%)	Repayment Period and Method
Unsecured Loan from E.SUN Bank	7,083	1.3750%	with interest payable monthly.
From March 31, 2022, to May 15, 2026, repayable in 24 monthly installments beginning June 15, 2024, with interest payable monthly.
Unsecured Loan from E.SUN Bank	6,744	1.5750%	From December 17, 2024, to May 15, 2026, repayable in 17 monthly installments beginning January 15, 2025, with interest payable monthly.
Unsecured Loan from E.SUN Bank	3,792	1.3750%	From May 28, 2021, to May 15, 2026, repayable in 24 monthly installments beginning June 15, 2024, with interest payable monthly.
Subtotal	363,225
Less: Current Portion	(197,448)
Total	$165,777
Creditor	2024/12/31	Interest Rate (%)	Repayment Period and Method
Secured Loan from Land Bank of Taiwan	$140,000	1.4321%	From July 17, 2023, to July 15, 2033, repayable in 84 monthly installments beginning August 15, 2026, with interest payable monthly.
Unsecured Loan from E.SUN Bank	138,958	1.5750%	From March 4, 2024, to November 15, 2026, repayable in 24 monthly installments beginning December 15, 2024, with interest payable monthly.
Unsecured Loan from E.SUN Bank	79,542	1.3750%	From November 29, 2021, to November 15, 2026, repayable in 24 monthly installments beginning December 15, 2024, with interest payable monthly.
Unsecured Loan from E.SUN Bank	69,000	1.3750%	From January 19, 2022, to November 15, 2026, repayable in 24 monthly installments beginning December 15, 2024, with interest payable monthly.
Unsecured Loan from E.SUN Bank	56,667	1.3750%	From September 28, 2021, to May 15, 2026, repayable in 24 monthly installments beginning June 15, 2024, with interest payable monthly.
Secured Loan from E.SUN Bank	34,500	2.0200%	From October 30, 2020, to October 30, 2030, repayable in 32 quarterly installments beginning January 30, 2023, with interest payable monthly.
Unsecured Loan from E.SUN Bank	25,203	1.5750%	From June 12, 2023, to May 15, 2026, repayable in 24 monthly installments beginning June 15, 2024, with interest payable monthly.
Unsecured Loan from E.SUN Bank	24,083	1.3750%	From March 31, 2022, to May 15, 2026, repayable in 24 monthly installments beginning June 15, 2024, with interest payable monthly.
Unsecured Loan from E.SUN Bank	22,930	1.5750%	From December 17, 2024, to May 15, 2026, repayable in 17 monthly installments beginning January 15, 2025, with interest payable monthly.
Secured Loan from Land Bank of Taiwan	19,443	2.2300%	From August 12, 2014, to August 12, 2029: Repayment in 144 monthly installments beginning September 30, 2017, with interest payable monthly.
Unsecured Loan from E.SUN Bank	12,892	1.3750%	From May 28, 2021, to May 15, 2026, repayable in 24 monthly installments beginning June 15, 2024, with interest payable monthly.
Secured Loan from Land Bank of Taiwan	6,153	2.2300%	From December 22, 2010, to December 22, 2025: Repayment in 156 monthly installments beginning January 31, 2013, with interest payable monthly.
Secured Loan from Chang Hwa Bank	4,000	2.4300%	From October 7, 2010, to October 7, 2025: Repayment in 52 quarterly installments beginning January 31, 2013, with interest payable monthly.

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC. (Continued)

(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Creditor	2024/12/31	Interest Rate (%)	Repayment Period and Method
Unsecured Loan from E.SUN Bank	1,800	2.0200%	From October 30, 2020, to October 30, 2025: Repayment in 20 quarterly installments beginning January 30, 2021, with interest payable monthly.
Subtotal	635,171
Less: Current Portion	(271,946)
Total	$363,225

The above bank borrowings are secured, for which land and buildings were prioritized as collateral. Please refer to Note 8 for details of the collateral.

11. Post-employment Benefit Plan

Defined Contribution Plans

The Company has an employee retirement plan stipulated in accordance with the "Labor Pension Act," which is a defined contribution plan. According to the Act, the Company's monthly labor pension contribution rate shall not be less than 6% of employees' monthly salary. The Company makes a monthly contribution equivalent to 6% of the employees' monthly salary to the personal pension account with the Bureau of Labor Insurance.

The Company recognized expenses for defined contribution plans amounting to NTD 21,970 thousand and NTD 20,800 thousand for the fiscal years 2025 and 2024, respectively.

The Company settled the defined benefit plan in 2018, so the Company has no employees who are eligible for the pension scheme under the defined benefit plan, so no sensitivity analysis of actuarial assumptions and major actuarial assumptions was performed.

12. Equity

(1) Ordinary Shares

As of December 31, 2025 and 2024, the Company's authorized share capital was NTD 2,000,000 thousand, with a par value of NTD 10 per share. The number of shares issued was 155,654,890 shares, and the paid-in capital was NTD 1,556,549 thousand. Each share carries one voting right and the right to receive dividends.

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.

(Continued)

(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(2) Capital Surplus

	2025/12/31	2024/12/31
Premium for Conversion of Convertible Corporate Bonds	$17,074	$17,074
Employee Stock Option	9,836	9,836
Combined Premium	352	352
Others	19	19
Total	$27,281	$27,281

As per the law, paid-in capital shall not be used for any purpose except to cover the Company's losses. When the Company has no losses, a certain percentage of the paid-in capital from the stock premium and gifts may be applied annually to replenish the capital. The aforementioned paid-in capital can be allocated in cash to shareholders in proportion to their shareholdings.

(3) Earnings Distribution and Dividend Policy

As per the Articles of Incorporation, where the Company makes a profit for a fiscal year, it shall distribute the earnings in the order specified below:

A. Paying taxes;
B. Offsetting a cumulative deficit;
C. Setting aside 10% of the remaining balance as a legal reserve;
D. Setting aside an amount for or reversing a special reserve in accordance with laws and regulations or the competent authority's instructions;
E. Any remaining profit, together with any undistributed retained earnings, adopted by the Board of Directors as the basis for making a distribution proposal, which shall then be reported to the shareholders' meeting.

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC. (Continued)

(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

The Company operates in the electronic components industry and strives to align with the overall environment and characteristics of the industry. The Company achieves its sustainability goals, pursues the long-term interests of shareholders, and stabilizes business performance targets, while taking into account the Company's budget for future capital expenditures and the status of capital needs. The Company's dividend policy is to appropriate at least 10% of its earnings after tax, less legal reserve and special reserve, as shareholder bonuses, with cash dividends accounting for at least 10% of the total dividends paid to shareholders. However, if the year's net income after tax does not reach 15% of the paid-in capital, the earnings may not be distributed. If the Company has no earnings available for the year, the cumulative undistributed earnings from the prior year may be distributed. When the shareholder bonus, legal reserve, or capital surplus mentioned above is paid in cash, the Board of Directors is authorized to act upon approval by two-thirds of the directors at a meeting attended by more than half of the directors, and the decision shall be reported to the shareholders' meeting.

As per the Company Act, the Company shall set aside a legal reserve unless its total amount has reached the amount of the total paid-in capital. The legal reserve may be used to offset a deficit. When the Company has no loss, the portion of the legal reserve that exceeds 25% of the paid-in capital may be used to distribute shares or cash to shareholders in proportion to their shareholdings.

When distributing the distributable earnings, the Company retroactively sets aside a special reserve for the difference between the balance of the special reserve and the net deduction of other equity items as per law when the IFRS is adopted for the first time. If there is a subsequent reversal of the net deduction of other equity, the special reserve may be reversed for the portion of the net deduction of other equity reversed to distribute earnings.

In accordance with the Letter Jin-Guan-Zheng- Fa No. 1090150022 issued by the FSC dated March 31, 2021, a special reserve shall be set aside for the unrealized revaluation gains and cumulative translation adjustment (gains), which were reclassified to retained earnings on the conversion date due to the adoption of exemptions under IFRS 1 "First-time Adoption of International Financial Reporting Standards" when IFRS was first adopted. When the Company uses, disposes of, or reclassifies the relevant assets later, it may reverse the portion of the special reserve in the same percentage to distribute earnings.

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.
(Continued)
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

During the years ended December 31, 2025 and 2024, there was no need to reverse the special reserve due to the use, disposal of, or reclassification of relevant assets.

The Company’s general shareholders’ meetings on March 12, 2026 and June 10, 2025, respectively, proposed and approved the appropriation and distribution of earnings and dividends per share for 2025 and 2024, as set forth below:

	Earnings Appropriation and Distribution Proposal		Dividends per Share (NTD)
	2025	2024	2025	2024
Legal Reserve Appropriation (reversal) of special reserve	$14,757	$60,462
Cash Dividends on Ordinary Shares (Note)	563	(20,637)	NTD 1.00	NTD 2.00
	155,655	311,310	per share	per share

Note: The Company’s Board of Directors, authorized by the Articles of Incorporation, passed a special resolution on March 12, 2026, approving the cash dividend distribution for common shares for fiscal year 2025.

Please refer to Note 6.16 for the relevant information on the estimation basis and recognized amounts of employee remuneration and directors’ remuneration.

Operating income

	2025	2024
Revenue From Customer Contracts
Revenue From Product Sales	$2,618,289	$2,986,667
Revenue From Provision of Services	1,174	2,672
Total	$2,619,463	$2,989,339

The Company’s revenue from customer contracts during 2025 and 2024 is as follows:

(1) Breakdown of Revenue

	2025	2024
Product Sales	$2,618,289	$2,986,667
Provision of Services	1,174	2,672
Total	$2,619,463	$2,989,339

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.

(Continued)

(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

The Company recognizes revenue when the control over the merchandise is transferred to a buyer, i.e. when the performance obligation is fulfilled at a certain point in time.

(2) Contract Balance

Contract Liabilities – current

	2025/12/31	2024/12/31
Product Sales	$6,771	$3,405

The major changes in the balances of the Company’s contract liabilities for 2025 and 2024 are specified below:

	2025	2024
Opening Balance Transferred to Revenue in This Period	$(3,405)	$(5,154)
Current Period Increase in Advance Receipts	6,771	3,405
Movements During This Period	$3,366	$(1,749)

(3) Transaction Prices Apportioned to the Outstanding Performance Obligations

None.

(4) Assets Recognized From the Cost of Obtaining or Fulfilling a Customer Contract

None.

Expected Credit Impairment Loss

	2025	2024
Operating Expenses – Gain (Loss) On Reversal of Expected Credit Impairment
Accounts Receivable	$156	$(33)

For information related to credit risk, please refer to Note 12.4.

The Company measures the allowance for losses on all of its receivables (including notes receivable and accounts receivable) using lifetime expected credit losses. Details as of December 31, 2025, and December 31, 2024, are as follows:

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.
(Continued)
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Receivables are evaluated based on factors such as counterparty credit ratings, and the allowance for losses is measured using a provision matrix. The relevant information is as follows:

As of December 31, 2025

	Not Overdue (Note)	Number of Days Past Due				Total
		1–90 days	91–180 days	181–365 days	365 days or more
Total Carrying Amount	$446,557	$36,308	$1,824	$264	$1,708	$486,661
Loss Ratio	-%	-%	-%	40-45%	100%
Lifetime Expected Credit Loss	-	-	-	(108)	(1,708)	(1,816)
Carrying Amount	$446,557	$36,308	$1,824	$156	$-	$484,845

As of December 31, 2024

	Not Overdue (Note)	Number of Days Past Due				Total
		1–90 days	91–180 days	181–365 days	365 days or more
Total Carrying Amount	$479,645	$40,146	$11,847	$6,286	$12,549	$550,473
Loss Ratio	-%	0~1%	0~1%	1~5%	30~35%
Lifetime Expected Credit Loss	-	(116)	(14)	(170)	(3,926)	(4,226)
Carrying Amount	$479,645	$40,030	$11,833	$6,116	$8,623	$546,247

Note: The Company’s notes receivable are all not past due.

The movements in the loss allowance for the Company’s notes receivable and accounts receivable for 2025 and 2024 are as follows:

	Notes Receivable	Accounts Receivable
2025/1/1	$-	$4,226
Decrease During the Period	-	(156)
Write-off Due to the Inability to Recover	-	(2,254)
2025/12/31	$-	$1,816
January 1, 2024	$-	$4,193
Increase in the Current Period	-	33
2024/12/31	$-	$4,226

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC. (Continued)

(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

15. Leasing

(1) The Company as a Lessee

The Company has leased a number of different assets, including property (land and buildings) and transportation equipment. The lease terms for each contract ranges from two to 5 years.

The impact of leasing on the Company’s financial position, financial performance, and cash flows is specified below:

A. Amounts Recognized in the Balance Sheet

(a) Right-of-use Assets

Carrying Amount of Right-of-use Assets

	2025/12/31	2024/12/31
Property and Buildings	$7,686	$-
Transportation Equipment	3,743	85
Total	$11,429	$85

For 2025, the Company recognized additions to right-of-use assets of NTD 15,916 thousand.

(b) Lease Liabilities

	2025/12/31	2024/12/31
Lease Liabilities
Current	$4,721	$101
Non-current	6,808	-
Total	$11,529	$101

For information on interest expenses related to lease liabilities for the Company’s fiscal years 2025 and 2024, please refer to Note 6.17(3) Financial Costs; for the maturity analysis of lease liabilities, please refer to Note 12.5 Liquidity Risk Management.

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.
(Continued)
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

B. Amounts recognized in the statement of comprehensive income.

Depreciation of Right-of-use Assets

	January 1, 2025 – December 31, 2025	January 1, 2024 – December 31, 2024
Property and Buildings	$2,965	$3,001
Transportation Equipment	1,607	1,413
Total	$4,572	$4,414

C. Lessee’s Income and Expenses Related to Leasing Activities

	January 1, 2025 – December 31, 2025	January 1, 2024 – December 31, 2024
Expenses of Short-term Leases	$2,802	$2,214

D. Lessee’s Cash Outflows From Leasing Activities

For 2025 and 2024, the Company’s total cash outflows for leases amounted to NTD 7,509 thousand and NTD 6,707 thousand, respectively.

Statement of Employee Benefits, Depreciation, Depletion, and Amortization Expenses by Function is as follows:

| By Function
By Nature | 2025 | | | 2024 | | |
| --- | --- | --- | --- | --- | --- | --- |
| | Operating Costs | Operating Expenses | Total | Operating Costs | Operating Expenses | Total |
| Employee Benefit Expenses | | | | | | |
| Salary and Wages | $283,079 | $203,339 | $486,418 | $327,571 | $186,077 | $513,648 |
| Labor and Health Insurance Costs | 35,827 | 17,727 | 53,554 | 33,056 | 15,744 | 48,800 |
| Pension Costs | 12,718 | 9,252 | 21,970 | 12,429 | 8,371 | 20,800 |
| Remuneration to Directors | - | 7,829 | 7,829 | - | 11,407 | 11,407 |
| Other Employee Benefit Expenses | 26,821 | 12,997 | 39,818 | 27,974 | 12,433 | 40,407 |
| Depreciation Expenses | 66,153 | 17,999 | 84,152 | 65,831 | 15,141 | 80,972 |
| Amortization Expenses | 1,113 | 1,605 | 2,718 | 665 | 1,623 | 2,288 |

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.
(Continued)
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

As of December 31, 2025 and 2024, the Company had 773 and 837 employees, respectively, of whom four directors in each year did not concurrently serve as employees.

The Company’s average employee benefit expenses for 2025 and 2024 were NTD 783 thousand and NTD 749 thousand, respectively; the Company’s average employee salary expenses for 2025 and 2024 were NTD 633 thousand and NTD 617 thousand, respectively. The average employee salary adjustment for both years was 2.59%.

The Company’s policy on the remuneration to directors, managers, and employees is as follows:

The Company has specified the policy on directors’ remuneration and employee remuneration in the Articles of Incorporation and has established an Audit Committee to evaluate and supervise the directors’ and managers’ remuneration mechanism. The procedure for determining the remuneration to directors and managers was established based on the Company’s Regulations Governing the Board Performance Evaluation and employee performance evaluation results. Reasonable remuneration to directors and managers is determined with reference to the Company’s operating performance, future risks, development strategies, and industry trends, as well as individuals’ contribution to the Company’s performance.

The Company formulated a complete employee benefit system to provide employees with competitive salary and benefits in compliance with laws and regulations and in alignment with each region’s needs. Employee remuneration includes monthly salary as well as dividends and bonuses depending on operating performance and is paid based on the annual profit as per the Articles of Incorporation. The Company regularly conducts company-wide performance evaluations of all employees every year to keep abreast of their work performance and adopts the evaluation results as the basis for promotion, training and development, and salary payout.

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.

(Continued)

(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

According to the Company’s Articles of Incorporation, if the Company reports a profit for the year, it shall allocate no less than three percent as employee compensation and no more than three percent as directors’ compensation. Of the employee compensation, no less than fifty percent of the total amount shall be allocated to entry-level employees. However, if the Company has accumulated losses, an amount shall first be reserved to offset such losses. The above employees’ remuneration may be distributed in stock or cash, which shall be approved by half of all directors present at a Board Meeting attended by more than two-thirds of all directors and then reported to the shareholders’ meeting. Please visit the Market Observation Post System (MOPS) for information on employee remuneration and directors’ remuneration approved by the Board of Directors.

Based on profitability conditions for fiscal year 2025, the Company estimated employee compensation and directors’ remuneration at 3.99% and 2.74%, respectively, and recognized amounts of NTD 8,000 thousand and NTD 5,500 thousand, which were recorded under salary expenses and other expenses. On March 12, 2025, the Company’s Board of Directors resolved to distribute employee compensation and directors’ remuneration in cash, amounting to NTD 8,000 thousand and NTD 5,500 thousand, respectively.

For fiscal year 2024, the Company’s actual distribution of employee compensation and directors’ remuneration amounted to NTD 24,000 thousand and NTD 9,500 thousand, respectively, which did not differ from the amounts recorded as expenses in the 2024 financial statements.

Non-operating Revenue and Expenses

(1) Other Income

	2025	2024
Interest Income
Financial Assets at Amortized Cost	$24,007	$39,970
Rent Income	4,755	4,794
Dividend Income	2,352	1,977
Other Income – Others	16,676	20,059
Total	$47,790	$66,800

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC. (Continued)

(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(2) Other Gains and Losses

	2025	2024
Gain on Disposal of Investments	$27,819	$7,726
Net Gains on Financial Assets and Liabilities at Fair Value Through Profit or Loss	12,438	5,802
Net losses (gains) on disposal of property, plant and equipment	(3,903)	3,353
Net Foreign Exchange (Loss) Gain	(7,140)	71,226
Others	(47,900)	(633)
Total	$(18,686)	$87,474

(3) Financial Costs

	2025	2024
Interest on Bank Borrowings	$13,711	$16,677
Interest on Lease Liabilities	219	24
Total	$13,930	$16,701

Components of Other Comprehensive Income

(1) The components of 2025 other comprehensive income are as follows:

	Generated During This Period	Other Comprehensive Income (loss)	Income Tax Expenses	After-Tax Amount
Items that will not be reclassified subsequently to profit or loss:
Unrealized valuation gain (loss) on equity instrument investments measured at fair value through other comprehensive income	$1,578	$1,578	$291	$1,869
Items that may be reclassified subsequently to profit or loss:
Exchange differences arising from the translation of the financial statements of foreign operations	(11,436)	(11,436)	2,287	(9,149)
Share of other comprehensive income of associates and joint ventures accounted for using equity method	512	512	-	512
Total	$(9,346)	$(9,346)	$2,578	$(6,768)

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC. (Continued)

(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(2) The components of 2024 other comprehensive income are as follows:

	Generated During This Period	Other Comprehensive Income (loss)	Income tax benefit	After-Tax Amount
Items that will not be reclassified subsequently to profit or loss:
Unrealized valuation gain (loss) on equity instrument investments measured at fair value through other comprehensive income	$(28,035)	$(28,035)	$(44)	$(28,079)
Items that may be reclassified subsequently to profit or loss:
Exchange differences arising from the translation of the financial statements of foreign operations	54,678	54,678	(10,936)	43,742
Share of other comprehensive income of associates and joint ventures accounted for using equity method	4,974	4,974	-	4,974
Total	$31,617	$31,617	$(10,980)	$20,637

Income Tax

The main components of income tax expense (benefit) for fiscal years 2025 and 2024 are as follows:

(1) Income Tax Recognized in Profit or Loss

	2025	2024
Current Income Tax Expenses:
Income Tax Payable For the Current Period	$24,634	$166,009
Income Taxes For prior Years Adjusted Into This Year	(15,248)	(6,303)
Deferred Tax Expenses:
Deferred Income Tax Expense (Benefit) Related to the Origination and Reversal of Temporary Differences	23,958	(52,601)
Income Tax Expenses	$33,344	$107,105

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.

(Continued)

(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(2) Income Tax Recognized in Other Comprehensive Income

	2025	2024
Deferred income tax benefit (expense):
Unrealized Gain (loss) From Investments in Equity Instruments Measured at Fair Value Through Other Comprehensive Income	$291	$(44)
Exchange Gains or Losses Arising from the Translation of the Financial Statements of Foreign Operations	2,287	(10,936)
Income Tax Related to Components of Other Comprehensive Income	$2,578	$(10,980)

(3) The amount of income tax expenses and accounting profit multiplied by the parent company's applicable income tax rate is adjusted as follows:

	2025	2024
Net Income Before Tax of the Continuing Operations	$187,117	$711,727
Amounts of Taxes Calculated at Relevant Countries' Domestic Tax Rates Applicable to Income	$37,423	$142,345
A Surtax on Undistributed Earnings	12,674	11,716
Income tax effect of tax-exempt (income) expenses	(1,505)	6,530
Income Taxes for Prior Years Adjusted Into This Period	(15,248)	(6,303)
Other Adjustments to Income Tax in accordance with Income Tax Act	-	(47,183)
Total Income Tax Expense Recognized in Profit or Loss	$33,344	$107,105

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC. (Continued)

(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(4) Balances of deferred tax assets (liabilities) related to the following items:

A. 2025

	Opening Balance	Recognized in Profit or Loss	Recognized in Other Comprehensive Income	Ending Balance
Temporary Difference
Unrealized foreign exchange gains and losses	$(4,368)	$2,480	$-	$(1,888)
Valuation of Financial Assets at Fair Value Through Profit or Loss	1,062	(354)	-	708
Allowance for Inventory Write-downs	6,821	7,479	-	14,300
Investments Using the Equity Method	(185,865)	(33,603)	-	(219,468)
Exchange Differences Arising from the Translation of the Financial Statements of Foreign Subsidiaries	(7,217)	-	2,287	(4,930)
Valuation of Financial Assets at Fair Value Through Other Comprehensive Income	1,392	-	291	1,683
Long-term Investment Income or Loss Impairment Recognized Using the Equity Method	226	-	-	226
Unrealized Sales Gross Profit	115	40	-	155
Deferred tax benefit/(expense)		$(23,958)	$2,578
Net Deferred Tax Assets (liabilities)	$(187,834)			$(209,214)
The information presented in the balance sheet is as follows:
Deferred Tax Assets	$9,616			$17,072
Deferred Tax Liabilities	$(197,450)			$(226,286)

B. 2024

	Opening Balance	Recognized in Profit or Loss	Recognized in Other Comprehensive Income	Ending Balance
Temporary Difference
Unrealized foreign exchange gains and losses	$1,026	$(5,394)	$-	$(4,368)
Valuation of Financial Assets at Fair Value Through Profit or Loss	1,200	(138)	-	1,062
Allowance for Inventory Write-downs	6,782	39	-	6,821
Investments Using the Equity Method	(243,903)	58,038	-	(185,865)
Exchange Differences Arising from the Translation of the Financial Statements of Foreign Subsidiaries	3,719	-	(10,936)	(7,217)
Valuation of Financial Assets at Fair Value Through Other Comprehensive Income	1,436	-	(44)	1,392
Long-term Investment Income or Loss Impairment Recognized Using the Equity Method	226	-	-	226
Unrealized Sales Gross Profit	59	56	-	115
Deferred tax benefit		$52,601	$(10,980)
Net Deferred Tax Assets (liabilities)	$(229,455)			$(187,834)
The information presented in the balance sheet is as follows:
Deferred Tax Assets	$10,729			$9,616
Deferred Tax Liabilities	$(240,184)			$(197,450)

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.
(Continued)
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(5) Unrecognized Deferred Tax Assets
N/A.

(6) Unrecognized Deferred Tax Liabilities Related to Investments in Subsidiaries
N/A.

(7) As of December 31, 2025, the Company’s profit-seeking enterprise income tax returns filed up to 2023 were approved by the tax authority.

Earnings per Share

The basic earnings per share is calculated with the net income attributable to the holders of the ordinary shares of the parent company divided by the weighted average number of ordinary share outstanding in the current period.

The diluted earnings per share is calculated by dividing the net income attributable to the holders of the ordinary shares of the parent company by the weighted average number of ordinary shares outstanding in the current period plus the weighted average number of ordinary shares to be issued if all dilutive potential ordinary shares were converted into ordinary shares.

(1) Basic Earnings per Share

	2025	2024
Net income for the current period (in NTD thousand)	$153,773	$604,622
Weighted Average Number of Ordinary Shares (in thousand shares) for the Earnings per Share	155,655	155,655
Basic Earnings per Share (NTD)	$0.99	$3.88

(2) Diluted Earnings per Share

	2025	2024
Net income for the current period (in NTD thousand)	$153,773	$604,622
Weighted Average Number of Ordinary Shares (in thousand shares) for the Earnings per Share Dilution Effect:	155,655	155,655
Employee Remuneration – Stock (in thousand shares)	234	376
Weighted Average Number of Ordinary Shares (in thousand shares) With the Dilution Effect Adjusted	155,889	156,031
Diluted Earnings per Share (NTD)	$0.99	$3.88

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC. (Continued)

(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

There were no other transactions performed that caused significant changes to the outstanding ordinary shares or potential ordinary shares after the reporting period and before the release of the financial statements.

VII. Related Party Transactions

The related parties with transactions with the Company during the financial reporting period are as follows:

Name of Related Party and Relationship With the Company

Name	Relationship With the Company
Eleven people including Cheng Yu-Liang	The management personnel at the director or the Vice President level or above in the Company
K.S.TERMINALS USA LLC	The Company’s Subsidiary
IFCHIC INC.	The Company’s Subsidiary
K.S. TERMINALS (INDIA) PRIVATE LIMITED	The Company’s Subsidiary
KST TERMINALS (INDIA) MANUFACTURING PRIVATE LIMITED	The Company’s Subsidiary
CHIEN HO HSING TECHNOLOGY (SUZHOU) CO., LTD	The Company’s Sub-subsidiary
K.S.TERMINALS (THAILAND) CO.,LTD.	The Company’s Sub-subsidiary
K.S.TERMINALS COMPANY LIMITED VIETNAM	The Company’s Sub-subsidiary
PT.KSTERMINALS TECHNOLOGY INDONESIA	The Company’s Sub-subsidiary
K.S. TERMINALS TECHNOLOGY (THAILAND) CO., LTD.	The Company’s Sub-subsidiary

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.

(Continued)

(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

1. Material Transactions With Related Parties

(1) Sales

	2025	2024
CHIEN HO HSING TECHNOLOGY (SUZHOU) CO., LTD	$342,835	$360,678
K.S.TERMINALS(THAILAND) CO., LTD.	53,803	51,632
K.S. Terminals USA LLC	24,204	16,256
KS.TERMINALS COMPANY LIMITED VIETNAM	14,710	17,162
P.T.KSTERMINALS TECHNOLOGY INDONESIA	6,573	3,953
K.S. TERMINALS TECHNOLOGY (THAILAND) CO.,LTD.	6,429	862
KST TERMINALS (INDIA) MANUFACTURING PRIVATE LIMITED	418	-
Total	$448,972	$450,543

The above sales terms and conditions are subject to the regular ones.

(2) Purchases

	2025	2024
CHIEN HO HSING TECHNOLOGY (SUZHOU) CO., LTD	$13,480	$30,205
K.S. TERMINALS TECHNOLOGY (THAILAND) CO., LTD.	1,991	-
	$15,471	$30,205

The above purchase terms and conditions are subject to the regular ones.

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.

(Continued)

(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(3) Accounts Receivable

	2025/12/31	2024/12/31
CHIEN HO HSING TECHNOLOGY
(SUZHOU) CO., LTD	$57,767	$88,404
K.S.Terminals USA LLC	19,234	11,329
K.S.TERMINNALS(THAILAND)
CO.,LTD.	10,060	14,127
KST TERMINALS (INDIA)
MANUFACTURING PRIVATE
LIMITED	5,255	-
K.S.TERMINALS COMPANY
LIMITED VIETNAM	5,023	24,272
K.S. TERMINALS TECHNOLOGY
(THAILAND) CO.,LTD.	4,442	5,764
P.T.KSTERMINALS TECHNOLOGY
INDONESIA	4,098	7,405
Total	$105,879	$151,301

(4) Right-of-use Assets

	2025/12/31	2024/12/31
The Company’s Key Management Personnel	$6,684	$-

(5) Lease Liabilities

	2025/12/31	2024/12/31
The Company’s Key Management Personnel	$6,748	$-

Remuneration of the Company’s Key Management Personnel

	2025	2024
Short-term Employee Benefits	$28,296	$37,366
Post-employment Benefits	2,052	1,677
Total	$30,348	$39,043

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC. (Continued)

(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

VIII. Assets Pledged

The Company has the following assets pledged as collateral:

Item	Carrying Amount		Details of Collateral for Debts
	2025/12/31	2024/12/31
Property, Plant and Equipment – Land and Buildings	$382,394	$394,192	Long-term Borrowings
Property, plant and equipment – machinery and equipment	1,890	2,160	Long-term Borrowings
Total	$384,284	$396,352

IX. Material Contingent Liabilities and Unrecognized Contractual Commitments

None.

X. Major Disaster Loss

None.

XI. Material Events After the Balance Sheet Date

None.

XII. Others

Types of Financial Instruments

Financial Assets	2025/12/31	2024/12/31
Financial Assets at Fair Value Through Profit or Loss:
Mandatorily as at Fair Value Through Profit or Loss	$872,773	$523,421
Financial Assets at Fair Value Through Other Comprehensive Income	75,816	76,837
Financial Assets at Amortized Cost:
Cash and Cash Equivalents (excluding cash on hand)	1,680,176	2,241,286
Financial Assets at Amortized Cost	31,375	32,740
Notes and Accounts Receivable (including from related parties)	484,845	546,247
Other Receivables	70,823	29,128
Refundable deposits (recorded under other non-current assets)	3,314	10,950
Total	$3,219,122	$3,460,609

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC. (Continued)

(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Financial Liability	2025/12/31	2024/12/31
Financial Liabilities at Amortized Cost:
Short-term Borrowings	$400,000	$325,000
Notes and Accounts Payable (including from related parties)	66,353	107,303
Other Payables	205,000	274,504
Long-term Borrowings (including due within one year)	363,225	635,171
Lease Liabilities	11,529	101
Guarantee deposits received (recorded under other non-current liabilities)	793	793
Total	$1,046,900	$1,342,872

Financial Risk Management Objectives and Policies

The Company’s financial risk management objectives are mainly to manage market, credit, and liquidity risks related to operating activities. The Company identifies, measures, and manages the above risks as per the Company’s policies and risk preferences.

The Company has established appropriate policies, procedures, and an internal control system in accordance with applicable regulations on the above financial risk management; important financial activities should be reviewed by the Board of Directors in accordance with applicable regulations and the internal control system. During the implementation of the financial management activities, the Company should comply with the applicable regulations on financial risk management.

Market Risk

Market risk refers to the risk of fluctuations in the fair value or cash flow of financial instruments due to the movements in market prices. The Company’s market risk primarily includes foreign exchange risk, interest rate risk, and other price risks (such as equity instruments).

In practice, one movement by a single change in risk variables is rare, and changes in risk variables are always interrelated; however, the sensitivity analysis of the following risks did not consider the interaction between relevant risks and variables.

Exchange Rate Risk

The Company’s exchange rate risk is mainly related to operating activities (when a currency used for income or expenses is different from the Company’s functional currency) and net investment in foreign operations.

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.

(Continued)

(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

The Company’s foreign-currency receivables and foreign-currency payables are partially in the same currency. Thus, there will be a natural hedging effect on part of the foreign-currency position. The exchange rate risk of certain foreign-currency payments is managed through forward exchange agreements. The natural hedging effect described above and the management of exchange rate risk through forward exchange agreements do not meet the requirements for hedge accounting; therefore, hedge accounting has not been adopted. Additionally, since the net investment in foreign operations is a strategic investment, the Company has not applied a hedging approach to it.

The sensitivity analysis of the Company’s exchange rate risk is mainly focused on the main foreign-currency monetary items on the end date of the financial reporting period. The Company’s exchange rate risk is mainly affected by fluctuations in the exchange rate of USD. The sensitivity analysis information is as follows:

When the NTD appreciates by 1% against the USD, the impact on the Company’s equity and profit or loss is as follows:

	Increase (decrease) in Equity	Gain (loss)
2025	$-	$(4,744)
2024	$-	$(4,637)

Interest Rate Risk

Interest rate risk refers to the risk of fluctuations in the fair value of financial instruments or future cash flows due to the movements in market interest rates. The Company’s interest rate fluctuation risk is mainly from borrowings at floating and fixed rates.

The sensitivity analysis of the Company’s interest rate risk was mainly focused on the floating interest rates for borrowings on the end date of the financial reporting period. With an assumption that such borrowings are held for one fiscal year, when the market interest rate increased/decreased by 0.1%, the Company’s 2025 and 2024 profit or loss would have decreased/increased by NTD 763 thousand and NTD 960 thousand, respectively.

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.
(Continued)
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Equity Price Risk

The Group holds equity securities of listed and unlisted companies, the fair values of which are subject to uncertainty regarding the future value of the underlying investments. The Company holds equity securities of listed and unlisted companies, which are classified as financial assets at fair value through other comprehensive income. The Company manages the price risk of equity securities by diversifying investments and setting limits for investments in single and overall equity securities. The information on the investment portfolio of equity securities should be regularly provided to the Company's senior management, and the Board of Directors should review and approve all decisions about investments in equity securities.

For listed equity securities classified as at fair value through profit or loss, a 1% increase/decrease in the prices of such securities would result in an increase/decrease in the Company's profit or loss of NTD 1,631 thousand and NTD 19 thousand for the periods from January 1 to December 31, 2025 and 2024, respectively.

For listed equity securities included in equity instrument investments classified as at fair value through other comprehensive income, a 1% increase/decrease in the prices of such securities would result in an increase/decrease in the Company's equity of NTD 398 thousand and NTD 394 thousand for the periods from January 1 to December 31, 2025 and 2024, respectively.

The fair values of other equity instruments or derivatives linked to equity instruments belong to Level 3. Please refer to Note 12.8 for sensitivity analysis information.

4. Credit Risk Management

Credit risk refers to the risk of financial loss arising from default by counterparties on contract obligations. The Company's credit risk is derived from its operating activities (mainly from notes and accounts receivables) and financial activities (mainly from bank deposits and various financial instruments).

Each business unit adopts the Company's customer credit risk policies, procedures, and control measures to manage the customer credit risk. The credit risk assessment of all customers is based on factors such as the customers' financial position, ratings by credit rating agencies, historical trading experience from the past, current economic environment, and the Company's internal rating criteria. The Company also uses certain credit enhancement tools (such as loans and insurance) at appropriate times to reduce specific customers' credit risk.

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.
(Continued)
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

As of December 31, 2025 and 2024, receivables from the Company’s top ten customers accounted for 30.66% and 28.27% of the Company’s total receivables, respectively. There was no concentration of credit risk.

The Company’s finance department manages the credit risk of bank deposits, fixed-income securities, and other financial instruments in accordance with the Company’s policies. The Company’s counterparties are determined by internal control procedures, such as banks with good credit, financial institutions with investment-grade ratings, corporate organizations, and governmental agencies, and there is no major concern about their contract performance; hence, there is no significant credit risk.

Liquidity Risk Management

The Company maintains financial flexibility through cash and cash equivalents, highly liquid securities, bank borrowings, convertible corporate bonds, and financing or leasing contracts. The table below summarizes the maturity of the payments contained in the contracts of the Company’s financial liabilities. It is compiled based on the earliest possible date for repayment and its undiscounted cash flow. The amounts listed also include the agreed interest. For the interest cash flow paid at floating interest rates, the undiscounted amount of interest is derived from the yield curve at the end of the reporting period.

Non-derivative Financial Instruments

	Less than 1 year	2–3 years	4–5 years	5 years or more	Total
2025/12/31
Short-term Borrowings	$400,484	$-	$-	$-	$400,484
Payables	66,353	-	-	-	66,353
Long-term Bank Borrowings	201,411	131,046	56,600	52,652	441,709
Lease Liabilities	4,917	5,464	1,440	-	11,821
2024/12/31
Short-term Borrowings	$325,518	$-	$-	$-	$325,518
Payables	107,303	-	-	-	107,303
Long-term Bank Borrowings	279,714	240,873	61,688	79,350	661,625
Lease Liabilities	101	-	-	-	101

Derivative Financial Liabilities

N/A.

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.
(Continued)
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Reconciliation of Liabilities From Financing Activities

Information on reconciliation of liabilities for the year ended December 31, 2025:

	Short-term Borrowings	Long-term Borrowings (including due within one year)	Lease Liabilities	Other Non-current Liabilities	Total Liabilities From Financing Activities
2025/01/01	$325,000	$635,171	$101	$793	$961,065
Cash Flow	75,000	(271,946)	(4,488)	-	(201,434)
Non-cash			15,916	-
Changes	-	-			15,916
2025/12/31	$400,000	$363,225	$11,529	$793	$775,547

Information on reconciliation of liabilities for the year ended December 31, 2024:

	Short-term Borrowings	Long-term Borrowings (including due within one year)	Lease Liabilities	Other Non-current Liabilities	Total Liabilities From Financing Activities
January 1, 2024	$400,000	$577,398	$4,570	$793	$982,761
Cash Flow	(75,000)	57,773	(4,469)	-	(21,696)
Non-cash			-	-
Changes	-	-			-
2024/12/31	$325,000	$635,171	$101	$793	$961,065

Fair Values of Financial Instruments

(1) Valuation Techniques and Assumptions Adopted to Measure the Fair Values

The fair values of financial assets and financial liabilities were the amounts in which the instruments were bought or sold in real time with willing parties (rather than by force or through liquidation). The methods and assumptions adopted by the Company to estimate the fair values of its financial assets and financial liabilities are as follows:

A. The fair values of cash and cash equivalents, receivables, payables, and other current liabilities are reasonable approximations of their carrying amounts, mainly due to the short durations of such instruments.

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.
(Continued)
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

B. As there is no active market for stocks of non-TWSE/TPEx listed companies, the fair values thereof were estimated using the market approach. The estimation was made based on recent fundraising activities, values of companies of the same types and scales, company technology development, market conditions, and other economic indicators.

C. The Company signed derivative financial instrument agreements with different counterparties, who are mainly financial institutions with great credit ratings. Derivative financial instruments valuated using valuation techniques based on observable inputs in the market are mainly forward exchange agreements.

D. Regarding debt instrument investments without quoted prices in an active market, bank borrowings, and other non-current liabilities, the fair values are determined based on the counterparties' quotes or valuation techniques. The valuation techniques are based on discounted cash flow analysis; the assumptions about interest rates and discount rates are made with reference to on similar instruments (such as the Taipei Exchange's yield curves for reference, the average quotes of Reuters commercial paper interest rates, and credit risks).

E. As for derivative financial instruments without quoted prices in an active market, if they are non-option derivatives, their fair values are determined based on the counterparties' quotes or the yield curves that apply during the duration of the discounted cash flow analysis; if they are option derivatives, the fair values are determined based on counterparties' quotes, appropriate option pricing models (such as Black-Scholes) or other valuation approaches (such as Monte Carlo Simulation).

(2) Fair Values of Financial Instruments at Amortized Cost

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

(3) Information on the Financial Instrument Fair Value Hierarchy

Please refer to Note 12.8 for information on the Company's financial instrument fair value hierarchy.

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.
(Continued)
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Derivatives

As of December 31, 2025 and 2024, the Company did not hold any derivatives that did not qualify for hedge accounting and had not yet matured.

Fair Value Hierarchy

(1) Fair Value Hierarchy Definitions

All assets and liabilities measured or disclosed at fair value are the lowest level inputs, which are important to the overall fair value measurement, classified to the fair value levels to which they belong. The input at each level is as follows:

Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities on the measurement date.

Level 2: Inputs, other than quoted market prices within Level 1 that are observable, either directly or indirectly, for assets or liabilities.

Level 3: The unobservable input value of an asset or liability.

For assets and liabilities that are recognized in the financial statements on a repetitive basis, the classification is re-evaluated at the end of each reporting period to determine whether there is a transfer between the fair value levels.

(2) Information on Hierarchy of Fair Value Measurement

The Company does not have assets measured at fair value on a non-recurring basis. The information on the fair value levels of assets and liabilities on a recurring basis is shown below:

As of December 31, 2025:

	Level 1	Level 2	Level 3	Total
Assets at Fair Value:
Financial assets at fair value through profit or loss – funds	$709,702	$-	$-	$709,702
Listed company shares	163,071	-	-	163,071
At Fair Value Through Other Comprehensive Income
Listed company shares	39,832	-	-	39,832
Unlisted company shares	-	-	35,984	35,984

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC. (Continued)

(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

As of December 31, 2024:

	Level 1	Level 2	Level 3	Total
Assets at Fair Value:
Financial assets at fair value through profit or loss – funds	$521,528	$-	$-	$521,528
Listed company shares	1,893	-	-	1,893
At Fair Value Through Other Comprehensive Income
Listed company shares	39,398	-	-	39,398
Unlisted company shares	-	-	37,439	37,439
Transfer Between Level 1 and Level 2 Fair Values

The Company's assets and liabilities measured at fair value on a recurring basis during 2025 and 2024 were not transferred between Level 1 and Level 2.

Details of Movements in Level 3 Fair Values

If the Company's assets and liabilities measured at fair value on a recurring basis that belong to Level 3 fair value, the reconciliation of the balances from the beginning of the period through the end of the period is listed as follows:

	Assets
	Financial Assets at Fair Value Through Other Comprehensive Income
	Stock
2025/01/01	$37,439
Total Losses Recognized for 2025:
Recognized in Other Comprehensive Income (recognized in unrealized gains/losses from investments in equity instruments at fair value through other comprehensive income)	(1,455)
2025/12/31	$35,984
January 1, 2024	$37,220
Total Gains Recognized for 2024:
Recognized in Other Comprehensive Income (recognized in unrealized gains/losses from investments in equity instruments at fair value through other comprehensive income)	219
2024/12/31	$37,439

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC. (Continued)

(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Significant Unobservable Level 3 Fair Value Inputs

Regarding the Company’s assets at Level 3 fair value on a recurring basis, the significant unobservable inputs at fair value are as follows:

As of December 31, 2025:

	Valuation Techniques	Significant Unobservable Inputs	Quantitative Information	Relationship Between Input and Fair Value	Sensitivity Analysis of the Value Relationship Between Inputs and Fair Values
Financial Assets: At Fair Value Through Other Comprehensive Income
Stock (Chi Rui)	Asset Valuation Approach	Illiquidity valuation adjustment	30%	The higher the illiquidity, the lower the fair value estimate	When the percentage of illiquidity increases (decreases) by 1%, the Company’s equity would have decreased/increased by NTD 360 thousand.

As of December 31, 2024:

	Valuation Techniques	Significant Unobservable Inputs	Quantitative Information	Relationship Between Input and Fair Value	Sensitivity Analysis of the Value Relationship Between Inputs and Fair Values
Financial Assets: At Fair Value Through Other Comprehensive Income
Stock (Chi Rui)	Asset Valuation Approach	Discount Due to Illiquidity	30%	The higher the illiquidity, the lower the fair value estimate	When the percentage of illiquidity increases (decreases) by 1%, the Company’s equity would have decreased/increased by NTD 374 thousand.

Evaluation Process for Level 3 Fair Value

The Company’s Finance Department is responsible for fair value verification, using data from independent sources to bring the valuation results closer to the market, confirming that the sources of the data are independent, reliable, consistent with other sources, and represent executable prices, while analyzing the changes in the value of assets and liabilities that must be remeasured or revaluated in accordance with the Company’s accounting policies at each balance date, to ensure that the valuation results are reasonable.

(3) Information on Those Not Measured at Fair Value but Need to be Disclosed

N/A.

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.
(Continued)
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Information on the foreign-currency financial assets and liabilities with significant impact is as follows:

The Company’s foreign-currency financial assets and liabilities with significant impact are as follows:

	2025/12/31			Unit: NTD thousand 2024/12/31
	Foreign Currency	Exchange Rate	(NTD)	Foreign Currency	Exchange Rate	(NTD)
Financial Assets
Monetary Items
USD	$15,138	31.375	$474,955	$14,849	32.74	$486,156
Financial Liability
Monetary Items
USD	$18	31.475	$567	$684	32.84	$22,463

Due to the wide variety of the Company’s functional currencies, it is not possible to disclose the information on the exchange gains or losses on monetary financial assets and financial liabilities in each significant foreign currency. The Company’s foreign exchange gains for 2025 and 2024 were NTD (7,140) thousand and NTD 71,226 thousand, respectively.

Capital Management

The Company’s capital management aims to confirm and maintain appropriate credit ratings and suitable capital ratios to facilitate business operations and maximize shareholders’ equity. The Company manages and adjusts the capital structure based on the economic conditions and may maintain and adjust the capital structure by adjusting dividend payments, returning capital, or issuing new shares.

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC. (Continued)
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

XIII. Additional Disclosures

The details of the Company’s major transactions, investees, and investees in China during 2025 are as follows:

Information on Material Transactions

(1) Funds lent to others: N/A.

(2) Endorsements/Guarantees Provided to Others:

No. (Note 1)	Name of Endorser/ Guarantor Company	Name of Endorsed/ Guaranteed Party		Limit on Endorsements/ Guarantees to a Single Enterprise (Note 3)	Highest Balance of Endorsements/ Guarantees During the Period	Ending Balance of Endorsements/ Guarantees	Actual Amount Drawn	Amount of Collateral Provided by the Company for Endorsements/ Guarantees	Ratio of Accumulated Endorsements/ Guarantees to Net Worth per Latest Financial Statements	Maximum Limit on Endorsements/ Guarantees (Note 3)	Endorsements/ Guarantees Provided by Parent Company to Subsidiaries	Endorsements/ Guarantees Provided by Subsidiaries to Parent Company	Endorsements/ Guarantees Provided to Mainland China Entities
		Company Name	Relationship (Note 2)
0	K.S. TERMINALS INC.	CHIEN HO HSING TECHNOLOGY (SUZHOU) CO., LTD	2	$1,296,849	$201,375 RMB 45,000 thousand	$201,375 RMB 45,000 thousand	$-	$-	3%	$3,242,123	Yes	No	Yes

Note 1: Explanation of the numbering column is as follows:
1. The Company is coded as "0."
2. Investees are numbered sequentially starting from "1" in Arabic numerals.

Note 2: The relationship between the endorser/guarantor and the endorsed/guaranteed party falls into one of the following seven categories (indicate the applicable category only):
1. A company with which there are business transactions.
2. A company in which the Company directly or indirectly holds more than 50% of the voting shares.
3. A company that directly or indirectly holds more than 50% of the voting shares of the Company.
4. A company in which the Company directly or indirectly holds 90% or more of the voting shares.
5. A company in the same industry or a joint constructor that provides mutual guarantees in accordance with contractual requirements for undertaking projects.
6. A company jointly invested in by all shareholders, for which endorsements/guarantees are provided by each shareholder in proportion to their shareholding.
7. A company in the same industry that provides joint performance guarantees for pre-sale housing contracts in accordance with consumer protection regulations.

Note 3: In accordance with the Company’s “Regulations Governing Making of Endorsements/Guarantees,” the total amount of external endorsements/guarantees shall not exceed 50% of the Company’s net worth; the amount provided to any single enterprise shall not exceed 20% of the Company’s net worth.

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC.
(Continued)
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(3) Information on Significant Marketable Securities Held at the End of the Period:

Type of Marketable Securities	Name of Marketable Securities	Relationship Between the Securities Issuer and the Company	General Ledger Account	End of Period
				Unit	Carrying Amount	Percentage (%)	Fair Value
Beneficiary Certificates	Franklin Templeton	None	Financial Assets at Fair Value Through Profit or Loss – current	16,701,50	$180,985	-	$182,865
	Sinoam Money Market Fund			1.84
Beneficiary Certificates	FSITC Taiwan Money Market Fund	None	〃	6,324,601.80	101,046	-	102,514
Beneficiary Certificates	Hua Nan Kirin Money Market Fund	None	〃	8,100,047.50	101,268	-	102,350
Beneficiary Certificates	SinoPac TWD Money Market Fund	None	〃	6,911,007.50	100,861	-	101,769
Beneficiary Certificates	Cathay Taiwan Money Market Fund	None	〃	3,913,097.90	50,626	-	51,372
Beneficiary Certificates	Fubon Chi-Hsiang Money Market Fund	None	〃	3,059,526.10	50,000	-	50,725
Beneficiary Certificates	Fuh Hwa You Li Money Market Fund	None	〃	3,525,745.00	50,000	-	50,003
Beneficiary Certificates	Fuh Hwa Global Bond Fund	None	〃	2,681,675.60	41,563	-	40,069
Beneficiary Certificates	TSMC by Cathay United Bank	None	〃	10,043.07	30,173	-	28,035
Stock	Ruentex Development Co., Ltd.	None	〃	3,421,000.00	100,267	-	101,946
Stock	Taiwan Semiconductor Manufacturing Co., Ltd.	None	〃	37,000.00	54,083	-	57,350
Stock	Johnson Health Tech. Co., Ltd.	None	〃	25,000.00	3,769	-	3,775
				Subtotal	864,641		$872,773
				Add: Financial Asset Value Adjustment	6,732
				Plus: Allowance for Exchange Gains	1,400
				Total	$872,773
Stock	Cayman Engley Industrial Co., Ltd.	None	Financial Assets at Fair Value Through Other Comprehensive Income	1,065,000	$130,225	0.88%	$39,832
Stock	Chi Rui (Cayman) Holding Limited	None	〃	2,336,345	44,402	5.29%	35,984
				Subtotal	174,627		$75,816
				Less: Financial Asset Value Adjustment	(98,811)
				Total	$75,816

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC. (Continued)

(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(4) Total purchases from or sales to related parties amounting to at least NTD 100 million or 20% of paid-in capital: Please refer to Note 13.1.(6).

(5) Receivables from related parties reaching NTD 100 million or 20% of paid-in capital or more: Please refer to Note 13.1.(6).

(6) The business relations between the parent company and its subsidiaries and among subsidiaries, and important intercompany transactions and amounts: The transactions below are intercompany transactions that should be eliminated and have been eliminated.

No. (Note 1)	Name of Trader	Counterparty	Relationship with transacting party (Note 2)	Transaction				Notes and Accounts Receivable (payable)
				Purchase (sales)	Amount	As a percentage of revenue or total assets (Note 3)	Transaction Terms	Balance	As a percentage of revenue or total assets (Note 3)
0	K.S. TERMINALS INC.	CHIEN HO HSING TECHNOLOGY (SUZHOU) CO., LTD	1	Sales	$342,835	7.80%	Same as Regular Transactions	Accounts Receivable $ 57,767	0.71%
0	K.S. TERMINALS INC.	CHIEN HO HSING TECHNOLOGY (SUZHOU) CO., LTD	1	Purchases	$13,480	0.31%	Same as Regular Transactions	Accounts Payable $ 3,077	0.04%

Note 1: "0" represents the parent company, and the remaining numbers represent subsidiaries.
Note 2: "1" represents parent-to-subsidiary transactions.
Note 3: The transaction amount as a percentage of the total revenue or total assets shall be calculated as the ratio of the ending balance to the total consolidated assets if it is an asset or liability item, or as the ratio of the interim cumulative amount to the total revenue if it is a profit or loss item.

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC. (Continued)

(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Information on Investees

Investees' names, location, main business activities, initial investment amounts, shareholdings at the end of the period, current profit or loss, and investment income or loss recognized (excluding investees in mainland China):

Name of Investor	Name of Investor	Address	Main Business Activities	Initial Investment Amount (Note 1)		Held at End of Period			Net Profit (loss) of the Investor for the Period	Investment Income or Loss Recognized by the Company	Notes
				End of Current Period	End of previous period	Number of Shares (equity)	Percent tage (%)	Carrying Amount
K.S. TERMINALS	K.S.T. INTERNATIONAL HOLDINGS LTD.	P.O.3340, Road Town, Tortola, British Virgin Islands	Financial Investment	$484,635	$484,635	14,540,500	100%	$1,685,434	$168,590	$167,634	Note 2
K.S. TERMINALS	JUNG PANG ENTERPRISE LTD.	P.O. BOX 3152, Road Town, Tortola, British Virgin Islands	Trade	347	347	10,000	100%	11,277	(157)	(157)
K.S. TERMINALS	K.S. Terminals USA LLC	2200 Jerrold Avenue, Unit P, San Francisco, California.	Trade	USD 3,300 thousand	USD 3,300 thousand	3,300,000	100%	27,082	(10,673)	(10,673)
K.S. TERMINALS	TAIBON HOLDING LIMITED	No.24, Lesperance, Providence Industrial Estate, MAHE Seychelles	Financial Investment	USD 160 thousand	USD 160 thousand	160,000	100%	90,927	16,341	16,341
K.S. TERMINALS	Ifchic Inc.	2200 Jerrold Avenue, Unit P, San Francisco, California.	Internet retailing	USD 2,500 thousand	USD 2,500 thousand	2,500,000	100%	63,950	(3,066)	(3,066)
K.S. TERMINALS	K.S.TERMINALS TECHNOLOGY (THAILAND) CO.,LTD.	163 VILLAGE NO. 9, PRENG SUBDISTRICT, BANG BO DISTRICT, SAMUTPRAKAN PROVINCE 10560	Production, processing, and sales of terminal parts	THB 30,000 thousand	THB 10,000 thousand	3,000,000	100%	26,539	854	854
K.S. TERMINALS	KST TERMINALS (INDIA) PRIVATE LIMITED	Samrah Plaza, St Marks Rd, Shanthala Nagar Ashok Nag, Mahatma Gandhi Road, Bangalore, Bangalore North, Karnataka, India, 560001	Trade	INR 21,000 thousand	INR 10,500 thousand	2,100,000	70%	3,315	(4,116)	(2,881)
K.S. TERMINALS	KST TERMINALS (INDIA) MANUFACTURING PRIVATE LIMITED	Samrah Plaza, St Marks Rd, Shanthala Nagar Ashok Nag, Mahatma Gandhi Road, Bangalore, Bangalore North, Karnataka, India, 560001	Production, processing, and Sale of charging connecti components	INR 251,776 thousand		25,177,590	100%	79,071	(1,280)	(1,280)
K.S. TERMINALS	Yangde Technology Co., Ltd.	No. 59, Ln.200,Zhuhe Rd.,Changhua City,Changhua County 500041,Taiwan(R.O.C.)	Industrial Plastic Products Manufacturing	NTD 9,800 thousand	NTD 9,800 thousand	980,000	35%	-	(2,231)	-
K.S. TERMINALS	HONLEY AUTO. PARTS CO., LTD.	No. 32, Jingjian Rd., Pingtung City, Pingtung County 900525, Taiwan (R.O.C.)	Automotive parts manufacturing industry	NTD 285,539 thousand	NTD 285,539 thousand	25,433,438	20.83%	191,849	(175,318)	(34,729)
K.S.T. INTERNATIONAL HOLDINGS LTD.	JIAN BANG (HONG KONG) HOLDING LTD.	SURSON COMM BLDG 140-142 AUSTIN RD TSIMSHATSUI	Financial Investment	HKD 103,776 thousand	HKD 93,610 thousand	103,766,000	100%	1,446,311	168,843	168,843

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC. (Continued)

(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Name of Investor	Name of Investee	Address	Main Business Activities	Initial Investment Amount (Note 1)		Held at End of Period			Net Profit (loss) of the Investee for the Period	Investment Income or Loss Recognized by the Company
				End of Current Period	End of previous period	Number of Shares (equity)	Percentage (%)	Carrying Amount
K.S.T. INTERNATIONAL HOLDINGS LTD.	K.S.Terminals (Asia) CO., LTD.	Land No. 58, Survey Page 1384, Tasith Sub-district, Pluak DaengDistrict, Rayong Province, Thailand	Production, processing, and sales of terminal parts	THB 30 thousand	THB 30 thousand	2,950	100%	(140)	(161)	(161)
TAIBON HOLDING LIMITED	K.S.TERMINALS (THAILAND) CO.,LTD.	499/5 Moo 13, Soi Kingkeaw 25/1, Kingkeaw Rd., Tambol Rajadeva, Amphur Bangplee Samuthprakarn 10540 Thailand	Trade	THB 4,900 thousand	THB 4,900 thousand	490,000	49%	80,179	33,337	16,335
JIAN BANG (HONG KONG) HOLDING LTD.	K.S.TERMINALS COMPANY LIMITED VIETNAM	511 Nguyen Oanh Street, Ward 17, Go Vap District, HCM City Vietnam	Trade	USD 2,000 thousand	USD 1,000 thousand	2,000,000	100%	48,009	2,126	2,126
JIAN BANG (HONG KONG) HOLDING LTD.	PT.KSTERMINALS TECHNOLOGY INDONESIA	Jl. Dr. Latumenten Raya No.19F RT.007 RW.008 Kel. Angke Kec. Tambora Kota Administrasi Jakarta Barat	Trade	USD 1,300 thousand	USD 1,000 thousand	1,300,000	100%	15,109	(2,815)	(2,815)

Note 1: The initial investment amount, equity held at the end of the period, and investment income or loss recognized are those recognized by the Company in proportion to its shareholdings.
Note 2: It includes the unrealized gains and losses from downstream transactions with related parties that were eliminated.

Notes to the Parent Company-Only Financial Statements of K.S. TERMINALS INC. (Continued)

(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Information on Investment in Mainland China

(1) The Company's investments in mainland China through K.S.T. INTERNATIONAL HOLDINGS LTD. And JIAN BANG (HONG KONG) HOLDING LTD. are as follows:

Name of Investee in mainland China	Main Business Activities	Paid-in Capital	Investment Method	Opening Balance of Cumulative Investment Remitted From Taiwan for this Period	The Investment Amount Remitted From Taiwan or Recovered During this Period		Ending Balance of Cumulative Investment Remitted From Taiwan for this Period (Note 5)	The Company's Sharehold- ings in Direct or Indirect Investments	Investment Income or Loss on Investees	Investment Income or Loss Recognize d for this Period (Note 2 and 3)	Carrying Amount of Investment s at the End of this Period	Cumulative Investment Income Repatriated as of the End of this Period
					Outward	Inward
CHIEN HO HSING TECHNO LOGY (SUZHOU) CO., LTD	Production, processing, and sales of components of new instruments, such as instrument connectors, and precision electronic ceramics	$235,313 (USD 7.5 million)	Established a Company in a Third Region to Invest in a Company in China	$235,313 (USD 7.5 million)	$-	$-	$235,313 (USD 7.5 million)	100%	$171,899	$171,899	$1,366,830	$1,703,663 (USD 54.3 million)
Ending balance of cumulative outward remittances for investment in mainland China (Note 1)	Investment Amount Approved by the Investment Commission, MOEA (Note 1)	Limit on Investment Amount Stipulated by the Investment Commission, MOEA
---	---	---
$352,216 (USD 11.226 million)	$352,216 (USD 11.226 million)	$3,890,547 (Note 4)

Note 1: If the above amounts were in foreign currencies, they were converted into NTD at the exchange rates prevailing on the balance sheet date.
Note 2: The investment income and losses recognized for this period are based on the financial statements that have been audited by the parent company's CPA in Taiwan.
Note 3: It includes the unrealized gains and losses from downstream transactions with related parties that were eliminated.
Note 4: As per the regulations of the Investment Commission, MOEA, the upper limit of the Company's investment in mainland China is 60% of its net worth.
Note 5: The differences between the cumulative investment amount and the investment amount approved by the Investment Commission, MOEA, are as follows:

(1) The investee company RI DUAN CHIEN HO HSING ELECTRONICS TECHNOLOGY (SUZHOU) CO., LTD., was liquidated in 2019, and the original investment amount of USD 2.636 million has been remitted back to the holding company, K.S.T. INTERNATIONAL HOLDINGS LTD.
(2) The Company invested in 5.29% of the equity of Chi Rui (Cayman) Holding Limited (the initial investment amounted to US$1.09 million), which was recognized as a financial asset at fair value through other comprehensive income.

(2) Please refer to Notes 13.1.(6) for information on major transactions with investees in China as well as the prices and payment terms thereof.

Information on Major Shareholders

As of December 31, 2025, the Company did not have a shareholder with a shareholding of 5% or higher.

K.S. TERMINALS INC.

Statement of Significant Accounting Items

2025

Item	Number/Index
Cash and Cash Equivalents Schedule	1
Schedule of Financial Assets at Fair Value through Profit or Loss – Current	2
Accounts Receivable Schedule	3
Inventory Schedule	4
Schedule of Financial Assets at Fair Value through Other Comprehensive Income – Non-current	5
Schedule of Changes in Long-term Investments Using Equity Method	6
Schedule of Changes in Property, Plant and Equipment	Note 6, 7
Schedule of Short-term Borrowings, Net	7
Schedule of Other Payables	Note 6, 9
Schedule of Long-term Borrowings	Notes 6,10
Deferred Tax Liabilities	Notes 6, 19,(4)
Schedule of Operating Income	8
Schedule of Operating Costs	9
Schedule of Manufacturing Expenses	10
Schedule of Operating Expenses	11
Summary of Employee Benefits, Depreciation, Depletion, and Amortization Expenses by Function	Notes 6,16
Schedule of Non-operating Income and Expenses	Notes 6,17

K.S. TERMINALS INC.
1. Cash and Cash Equivalents Schedule
December 31, 2025
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Item	Summary	Amount	Notes
Cash on Hand		$2,149
Bank deposits	Demand Deposits – NTD	566,618	The major foreign currencies are as follows:
	Demand Deposits – Foreign Currency	191,644	USD 2,145 thousand
	Time Deposits – NTD	475,000
	Time Deposits – Foreign Currency	147,113	USD 4,689 thousand
Cash Equivalents	Repurchase Agreements for Short-term Bills	299,801
Total		$1,682,325

K.S. TERMINALS INC.
2. Financial Assets at Fair Value Through Profit or Loss
December 31, 2023
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Investment Target	Opening Balance		Current Period Increase		Current Period Decrease					Ending Balance
	Number of units		Number of units	Amount	Number of units	Costs	Selling Price	Exchange Gain (loss)	Disposal Gain (loss)	Number of units	Amount
FSITC Taiwan Money Market Fund	9,411,607.30	$150,000	3,122,053.60	$50,000	(6,209,059.10)	$(98,954)	$100,000	$-	$(1,046)	6,324,601.80	$101,046
Franklin Templeton Sinuan Money Market Fund	13,926,887.04	150,000	11,968,241.98	130,000	(9,193,627.18)	(99,015)	100,000	-	(985)	16,701,501.84	180,985
Hua Nan Kirin Money Market Fund	4,135,097.70	51,268	3,964,949.80	50,000	-	-	-	-	-	8,100,047.50	101,268
Fuh Hwa You Li Money Market Fund	-	-	3,525,745.00	50,000	-	-	-	-	-	3,525,745.00	50,000
Fubon Chi-Hsiang Money Market Fund	-	-	3,059,526.10	50,000	-	-	-	-	-	3,059,526.10	50,000
SinoPac TWD Money Market Fund	3,507,123.00	50,861	3,403,884.50	50,000	-	-	-	-	-	6,911,007.50	100,861
Cathay Taiwan Money Market Fund	3,913,097.90	50,626	-	-	-	-	-	-	-	3,913,097.90	50,626
Fuh Hwa Global Bond Fund	2,681,675.60	41,563	-	-	-	-	-	-	-	2,681,675.60	41,563
TSMC by Cathay United Bank	10,043.07	30,173	-	-	-	-	-	-	-	10,043.07	30,173
Buentex Development Co., Ltd.	-	-	3,421,000.00	100,267	-	-	-	-	-	3,421,000.00	100,267
Taiwan Semiconductor Manufacturing Co., Ltd.	-	-	79,000.00	107,526	(42,000.00)	(53,443)	59,924	-	(6,481)	37,000.00	54,083
Johnson Health Tech. Co., Ltd.	-	-	55,000.00	8,421	(30,000.00)	(4,652)	4,960	-	(308)	25,000.00	3,769
LOTES CO., LTD	-	-	14,000.00	21,699	(14,000.00)	(21,699)	21,028	-	671	-	-
ShunSin Technology Holdings Limited	5,000.00	1,190	-	-	(5,000.00)	(1,190)	1,220	-	(30)	-	-
Zero One Technology Co Ltd	5,000.00	673	-	-	(5,000.00)	(673)	683	-	(10)	-	-
MEDIATEK INC.	-	-	16,000.00	21,494	(16,000.00)	(21,494)	21,526	-	(32)	-	-
Wistron Corporation	-	-	10,000.00	1,116	(10,000.00)	(1,116)	1,021	-	95	-	-
Delta Electronics, Inc.	-	-	35,000.00	16,072	(35,000.00)	(16,072)	16,683	-	(611)	-	-
EZconn Corporation	-	-	21,000.00	15,010	(21,000.00)	(15,010)	15,643	-	(633)	-	-
Accton Technology Corporation	-	-	11,000.00	8,599	(11,000.00)	(8,599)	9,111	-	(512)	-	-
Hu Lane Associate Inc.	-	-	250,000.00	34,091	(250,000.00)	(34,091)	36,800	-	(2,709)	-	-
King Slide Works Co., Ltd.	-	-	3,000.00	8,984	(3,000.00)	(8,984)	9,209	-	(225)	-	-
Elite Material Co., Ltd.	-	-	5,000.00	5,793	(5,000.00)	(5,793)	6,024	-	(231)	-	-
Asia Vital Components Co., Ltd.	-	-	8,000.00	8,118	(8,000.00)	(8,118)	8,256	-	(138)	-	-
Wiwynn Corporation	-	-	40,000.00	120,892	(40,000.00)	(120,892)	133,546	-	(12,654)	-	-
ASE Technology Holding Co., Ltd.	-	-	70,000.00	11,842	(70,000.00)	(11,842)	13,175	-	(1,333)	-	-
Systec Technology Co., Ltd.	-	-	4,000.00	3,626	(4,000.00)	(3,626)	3,022	-	604	-	-
Alchip Technologies, Inc.	-	-	2,000.00	6,303	(2,000.00)	(6,303)	6,946	-	(643)	-	-
Yugeo Corporation	-	-	20,000.00	4,102	(20,000.00)	(4,102)	4,450	-	(348)	-	-
King Yan Electronics Co., Ltd.	-	-	5,000.00	882	(5,000.00)	(882)	1,031	-	(149)	-	-
LexNet Corporation	-	-	10,000.00	2,131	(10,000.00)	(2,131)	2,242	-	(111)	-	-
Total Cost	37,595,531.61	$526,354	33,123,400.98	$886,968	(16,008,686.28)	$(548,681)	$576,500	$-	$(27,819)	54,710,246.31	$864,641
Allowance for Exchange Gain (loss)		2,773		(1,373)							1,400
Fair Value Adjustment for Trading Financial Assets		(5,706)		40,257		(27,819)					6,732
Net Amount		$523,421		$855,852		$(576,500)					$872,773

K.S. TERMINALS INC.
3. Accounts Receivable Schedule
December 31, 2025
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Customer Name	Amount	Notes
Accounts Receivable – (Non-Related Parties)	$34,130
Customer A	31,615
Customer B	22,671
Customer C	20,204
Customer D	17,627
Customer E	225,473	(Note)
Others	351,720
Subtotal	2,423
Add: Allowance for Exchange Losses	(1,816)
Less: Allowance for Losses	352,327
Net Amount	56,643
Accounts Receivable – (Related Parties)	18,516
CHIEN HO HSING TECHNOLOGY (SUZHOU) CO., LTD	9,932
K.S. Terminals USA LLC	18,445	(Note)
K.S. TERMINALS (THAILAND) CO., LTD.	103,536
Others	2,343
Subtotal	105,879
Plus: Allowance for Exchange Gains	$458,206
Net Amount
Total

(Note): Customer balances less than 5% of the total account amount are presented in aggregate.

K.S. TERMINALS INC.
4. Inventory Schedule
December 31, 2025
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Item	Amount		Notes
	Costs	Market Price
Raw Materials	$242,159	$243,514	For the determination of net realizable value, please refer to Note 4.10 to the financial statements.
Works-in-Progress	91,906	90,533
Finished Goods	750,178	915,884
Goods in Transit	5,901	5,901
Total	1,090,144	$1,255,832
Less: Allowance for inventory write-downs and obsolescence losses	(71,498)
Net Amount	$1,018,646

K.S. TERMINALS INC.
5. Schedule of Changes in Financial Assets at Fair Value through Other Comprehensive Income – Non-current
For the year ended December 31, 2025
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Name	Opening Balance		Current Period Increase		Current Period Decrease		Valuation Gain/Loss	Ending Balance		Accumulated Impairment	Collateral or Pledge Status	Notes
	Shares	Amount	Shares	Amount	Shares	Amount		Shares	Amount
Chi Rui (Cayman) Holding Limited	2,336,345	$37,439	-	$-	-	$-	$(1,455)	2,336,345	$35,984	N/A	None
Cayman Engley Industrial Co., Ltd.	1,137,000	39,398	-	-	(72,000)	(2,599)	3,033	1,065,000	39,832	〃	〃	Note 1
Total		$76,837		$-		$(2,599)	$1,578		$75,816

Note 1: Note 1: For current period changes, please refer to Financial Statement Note 6.5. Financial Assets at Fair Value Through Other Comprehensive Income

K.S. TERMINALS INC.
6. Schedule of Changes in Long-term Investments Using Equity Method
For the year ended December 31, 2025
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

2025	Opening Balance		Current Period Investment Increases		Current Period Investment Decreases		Unrealized Gross Profit between Affiliated Companies	Investment Gain (loss) Recognized under Equity Method	Conversion adjustment	Ending Balance			Collateral or Pledge Status
	Shares	Amount	Shares	Amount	Shares	Amount	Amount			Shares	Shareholding percentage (%)	Amount		Notes
K.S.T. INTERNATIONAL HOLDINGS LTD.	14,540,500	$1,503,576	-	$-	-	$-	$4,999	$167,634	$9,225	14,540,500	100%	$1,685,434	None	Note 1
Ifchic Inc.	2,500,000	69,961	-	-	-	-	-	(3,066)	(2,945)	2,500,000	100%	63,950	n	n
K.S.TERMINALS USA LLC	3,300,000	39,500	-	-	-	-	-	(10,673)	(1,745)	3,300,000	100%	27,082	n	n
TAIBON HOLDING LIMITED	160,000	71,222	-	-	-	-	-	16,341	3,364	160,000	100%	90,927	n	n
JUNG PANG ENTERPRISE LTD.	10,000	11,434	-	-	-	-	-	(157)	-	10,000	100%	11,277	n	n
K.S.TERMINALS TECHNOLOGY (THAILAND) CO.,LTD.	1,000,000	5,841	2,000,000	19,600	-	-	-	854	244	3,000,000	100%	26,539	n	n
KST TERMINALS (INDIA) PRIVATE LIMITED	1,050,000	3,055	1,050,000	3,606	-	-	-	(2,881)	(465)	2,100,000	70%	3,315	n	n
KST TERMINALS (INDIA) MANUFACTURING PRIVATE LIMITED	-	-	25,177,590	99,465	-	-	-	(1,280)	(19,114)	25,177,590	100%	79,071	n	n
HONLEY AUTO. PARTS CO., LTD.	25,433,438	226,066	-	-	-	-	-	(34,729)	512	25,433,438	20.83%	191,849	n	n
Yangde Technology Co., Ltd.	980,000	-	-	-	-	-	-	-	-	980,000	35%	-	n	n
Total		$1,930,655		$122,671		$-	$4,999	$132,043	$(10,924)			$2,179,444

Note 1: For current period changes, please refer to Financial Statement Note 6.6 Investments Accounted for Using Equity Method.

K.S. TERMINALS INC.
7. Schedule of Short-term Borrowings, Net
December 31, 2025
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Type of Loan	Creditor	Loan Amount	Contract period	Interest Rate Range	Financing Limit	Collateral or Guarantee
Unsecured Loans	CTBC Bank
TAIWAN	$150,000	2025/08/27–2026/06/24	1.8200%	$280,000	None
Unsecured Loans	BUSINESS
BANK,LTD.	50,000	2025/07/21–2026/01/21	1.7250%	290,000	〃
Unsecured Loans	Mega Bank
First	50,000	2025/11/03–2026/01/30	1.8500%	120,000	〃
Unsecured Loans	Commercial Bank	50,000	2025/12/03–2026/03/03	1.8250%	100,000	〃
Unsecured Loans	Cathay United Bank	50,000	2025/08/26–2026/02/13	1.8500%	100,000	〃
Unsecured Loans	Bank of Taiwan	50,000	2025/11/14–2026/05/13	1.8250%	100,000	〃
	Total	$400,000

K.S. TERMINALS INC.
8. Schedule of Operating Income
For the year ended December 31, 2025
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Item	Quantity	Amount	Notes
Terminal Category	(Note)	$2,275,773	Note: Due to different units of shipment quantities, including kilograms, PCS, and SET, totals are not calculated.
Cable Tie Category		160,870
Lighting Systems		59,766
Accessories Category		123,054
Others		$2,619,463

K.S. TERMINALS INC.
9. Schedule of Operating Costs
For the year ended December 31, 2025
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Item	Amount
	Subtotal	Total
I. Cost of goods manufactured and sold
Direct Materials:
Beginning raw materials	$394,414
Add: Purchases during the period	746,003
Less: Transferred to finished goods	(2,469)
Ending raw materials	(242,159)
Raw materials sold	(329,915)
Direct materials consumed during the period	565,874
Direct Labor	121,532
Manufacturing Overhead	690,948
Manufacturing Costs	1,378,354
Add: Beginning work in process	96,586
Less: Ending work in process	(91,906)
Cost of Finished Goods	1,383,034
Add: Beginning finished goods	929,882
Beginning goods in transit	3,047
Purchases during the period	271,782
Transferred in from raw materials	2,469
Less: Ending finished goods	(750,178)
Ending goods in transit	(5,901)
Reclassified to expenses	(22,721)
Cost of goods manufactured and sold		1,811,414
II. Cost of Materials Sold		329,915
III. Other Costs
Income from Sale of Scrap and Waste Materials		(42,931)
Valuation Losses		37,395
Operating Costs		$2,135,793

K.S. TERMINALS INC.

Schedule of Manufacturing Expenses

For the year ended December 31, 2025

(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Item	Amount	Notes
Salary Expenses	$161,547
Processing Costs	136,129
Depreciation	66,153
Utilities Expenses	55,389
Consumable Supplies Expenses	53,990
Packaging Expenses	45,174
Insurance Expenses	44,318
Other Expenses	128,248	(Note)
Total	$690,948

(Note): Items less than 5% of the account balance are presented in aggregate.

K.S. TERMINALS INC.
11. Schedule of Operating Expenses
For the year ended December 31, 2025
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Item	Selling Expenses	Administrative and General Expenses	R&D Expenses	Other Expenses	Total	Notes
Salary Expenses	$64,407	$84,507	$54,425	$-	$203,339
Insurance Expenses	10,347	10,058	5,896	-	26,301
Gain on Reversal of Expected Credit Impairment	-	-	-	(156)	(156)
Other Expenses	84,861	67,823	66,601	-	219,285	(Note)
Total	$159,615	$162,388	$126,922	$(156)	$448,769

(Note): Items less than 5% of the account balance are presented in aggregate.

AI assistant

KST — Audit Report / Information 2025

52240_rns_2026-05-27_f5a0ecc4-f173-4546-a00f-dff4f31501de.pdf

Parent Company-Only Financial Statements

Table of Contents

Audit opinions

Basis for Audit Opinion

Key Audit Matters

Inventory Valuation (including investment using the equity method – subsidiary inventory)

Other Matters – Reference to Other Accountants

Responsibilities of the management and the governing body for the parent company-only financial statements

CPAs’ responsibilities for the audit of the parent company-only financial statements

K.S. TERMINALS INC.

(1) IFRS 17 Insurance Contracts

(2) Amendments to Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7)

Financial Liability

Financial Liabilities at Amortized Cost

Derecognition of Financial Liabilities

(5) Offset of Financial Assets and Liabilities

8. Derivatives

12. Property, plant and equipment

13. Investment Property

The Company as a Lessor

15. Intangible Assets

4. Inventories

5. Financial Assets at Fair Value Through Other Comprehensive Income

11. Post-employment Benefit Plan

Defined Contribution Plans

12. Equity

(1) Ordinary Shares

15. Leasing

(1) The Company as a Lessee

A. Amounts Recognized in the Balance Sheet

(a) Right-of-use Assets

(b) Lease Liabilities

VII. Related Party Transactions

1. Material Transactions With Related Parties

Interest Rate Risk

Equity Price Risk

4. Credit Risk Management

Details of Movements in Level 3 Fair Values

Significant Unobservable Level 3 Fair Value Inputs

Evaluation Process for Level 3 Fair Value

K.S. TERMINALS INC.

Statement of Significant Accounting Items

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KST Audit Report / Information 2025