Stock Code 1444

LEALEA ENTERPRISE
CORPORATION LIMITED and
Subsidiaries

Consolidated Financial Statements for the
Years Ended December 31, 2025 and 2024
and Independent Auditors’ Report

ADD: 11F, No. 162, Songjiang Rd., Taipei City
104, Taiwan
TEL: 02-2100-2888

Table of Contents

ITEM	PAGE	FINANCIAL STATEMENTS NOTE
1. Cover	1	-
2. Table of Contents	2	-
3. Representation Letter	3	-
4. Independent Auditors’ report	4～7	-
5. Consolidated Balance Sheets	8	-
6. Consolidated Statements of Comprehensive Income	9～10	-
7. Consolidated Statements of Change In Equity	11	-
8. Consolidated Statements of Cash Flows	12～14	-
9. Notes to Consolidated Financial Statements
(1) General	15	1
(2) The Authorization of Financial Statements	15	2
(3) Application of New And Revised International Financial Reporting Standards	15～17	3
(4) Summary of Significant Accounting Policies	17～34	4
(5) Critical Accounting Judgments and Key Sources of Estimation and Uncertainty	34	5
(6) Description for Significant Accounting Items	34～61	6～24
(7) Related Parties Transactions	70～77	30
(8) Pledged Assets	77	31
(9) Significant Contingent Liabilities And Unrecognized Contract Commitments	77	32
(10) Significant Loss Due to Disasters	-	-
(11) Significant Subsequent Events	-	-
(12) Other	61～70、78	25～29、33
(13) Notes for Disclosed Matters
1. Related Information on Significant Transaction Matters	79	34
2. Related Information on Reinvestment Businesses	79	34
3. Information on Investment in China	79	34
(14) Segment Information	80～81	35

REPRESENTATION LETTER

The entities that are required to be included in the combined financial statements of LEALEA ENTERPRISE CORPORATION LIMITED as of and for the year ended December 31, 2025, under the Criteria Governing the Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises are the same as those included in the consolidated financial statements prepared in conformity with the International Financial Reporting Standard 10, “Consolidated Financial Statements.” In addition, the information required to be disclosed in the combined financial statements is included in the consolidated financial statements. Consequently, LEALEA ENTERPRISE CORPORATION LIMITED and Subsidiaries do not prepare a separate set of combined financial statements.

Very truly yours,

LEALEA ENTERPRISE Co., Ltd.
By

Kuo, Shao-Yi
Chairman

March 16, 2026

INDEPENDENT AUDITORS' REPORT

The Board of Directors and Shareholders
Lealea Enterprise Corporation Limited:

Opinion

We have audited the accompanying consolidated financial statements of Lealea Enterprise Corporation Limited and its subsidiaries (the "Company"), which comprise the consolidated balance sheets as of December 31, 2025 and 2024, and the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and the notes to the consolidated financial statements, including a summary of significant accounting policies.

Per opinions of our accountants, based on our audits and the report of other auditors (please refer to the Other Matter paragraph), the consolidated financial statements mentioned in paragraph one have been prepared in accordance with Regulations Governing the Preparation of Financial Reports by Securities Issuers, International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), and interpretations and announcements endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China in all material aspects, and can be reasonably assessed to present the consolidated financial conditions of the Company and its subsidiaries as of December 31, 2025 and 2024, as well as the consolidated financial performance and consolidated cash flow from January 1 to December 31, 2025 and 2024.

Basis for Opinion

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

Key Audit Matters

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

Key audit matters for the Company’s consolidated financial statements for the year ended December 31, 2025 are stated as follows:

The authenticity of sales revenue from specific customers

The operating income of Lealea Enterprise Co., Ltd. and its subsidiaries in 2025 decreased compared with that in 2024. However, the amount of customer sales income of some polyester draw textured yarn products increased compared with previous years. Due to the actual occurrence of sales income, relevant income was recognized and the fair expression of the consolidated financial report. Therefore, we have identified the authenticity of sales revenue from specific polyester draw textured yarn customers as a key audit matter for the year 2025. For accounting policies and disclosure information related to the recognition of sales revenue, please refer to Note 4.

The main auditing procedures adopted by the accountants with regard to the issues described above are to understand the effectiveness of internal controls concerning sales management procedures related to the revealed sales revenue, test the effectiveness of design and execution related to internal control, execute test of details of revenue, take random inspections on customer orders as well as relevant documents and certificates of shipment and payment collection and raise requests for confirmation letters in order to assure the authenticity of sales revenue.

Other Matter

The financial statements of some of the investee companies that were processed using the equity method in the consolidated financial report were not reviewed by this accountant, but were reviewed by other accountants. Therefore, in the opinions expressed by our accountants on the consolidated financial report, the amounts listed in the financial statements of the investee companies that are treated using the equity method are based on the audit reports of other accountants. As of December 31, 2025 and 2024, the investment amount of the above-mentioned invested company in the accounts was NT$1,188,607 thousand and NT$1,181,675 thousand, accounting for 6.08% and 5.81% of the total assets. From January 1 to December 31, 2025 and 2024, the share of the above-mentioned investee company's comprehensive profits and losses of affiliated enterprises recognized using the equity method was NT$5,364 thousand and NT$12,369 thousand, respectively, accounting for (0.39%) and 8.36% of the comprehensive profit and loss of the respective years.

We have also audited the individual financial statements of Lealea Enterprise Corporation Limited as of and for the years ended December 31, 2025 and 2024 on which we have issued an unmodified opinion.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the IFRS, IAS, IFRIC, and SIC endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

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

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

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

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

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

Identified and evaluated the risk of material misstatement due to fraud or error in the Consolidated Financial Statements; designed and carried out appropriate countermeasures for the evaluated risks; obtained sufficient and appropriate evidence as the basis for the audit 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 for one resulting from error.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to
6 -

continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Company to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our opinion.

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

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

In the communications between us and the Company's governing body, we have determined the key audit items from 2025 consolidated financial statements of the Company and its subsidiaries. We have clearly indicated such matters in the auditors' report. Unless legal regulations prohibit the public disclosure of specific items, or in extremely rare cases, where we decided not to communicate over 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 brings forth.

The engagement partners on the audit resulting in this independent auditors' report are
Yi-Min, Huang and Kuo-Tyan, Hong

Deloitte & Touche
Taipei, Taiwan

March 16, 2026

LEALEA ENTERPRISE CORPORATION LIMITED AMD SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
For The Years Ended December 31, 2025 and 2024
(In Thousands of New Taiwan Dollars)

Code	ASSETS	December 31,2025		December 31,2024
		Amount	%	Amount	%
CURRENT ASSETS
1100	Cash and cash equivalents (Note 4, 6)	$ 550,540	3	$ 650,496	3
1110	Financial assets at fair value through profit or loss - Current (Note 4, 7)	879,776	5	265,906	1
1150	Notes receivable, net (Note 4, 8)	30,166	-	60,718	-
1170	Accounts receivable, net (Note 4, 8)	377,212	2	484,141	2
1180	Accounts Receivable from related parties, net (Note 4, 8, 30)	64,508	-	134,646	1
1210	Advance loans to related parties (Note 30)	938,018	5	530,000	3
1310	Inventories - Manufacturing & Merchandising businesses (Note 4, 9)	1,637,350	8	2,188,082	11
1320	Inventories - construction (Note 4, 9)	1,567,177	8	1,123,926	6
1410	Prepayments	116,795	1	235,923	1
1476	Other financial assets - Current (Note 6)	35,803	-	151,042	1
1479	Other current assets	610	-	70	-
11XX	Total current assets	6,197,955	32	5,824,950	29
NONCURRENT ASSETS
1510	Financial assets at fair value through profit or loss - Noncurrent (Note 4, 7)	373	-	373	-
1517	Financial assets at fair value through Other comprehensive gains and losses - Noncurrent (Note 4, 10,11)	16,571	-	16,427	-
1550	Investments accounted for using equity method (Note 4, 13)	4,508,500	23	5,032,755	25
1600	Property, plant and equipment (Note 4, 14)	7,902,198	41	8,553,674	42
1755	Right-of-use assets (Note 4, 15)	80,896	-	12,409	-
1760	Investment property (Note 4, 16)	533,327	2	342,352	2
1780	Other intangible assets	48,199	-	55,470	-
1805	Goodwill (Note 4, 17)	63,337	-	196,542	1
1840	Deferred income tax assets (Note 4, 23)	288,696	2	215,203	1
1915	Prepayments for business facilities	47,547	-	31,944	-
1990	Other noncurrent assets - Others(Note 14)	47,752	-	55,374	-
15XX	Total noncurrent assets	13,337,396	68	14,512,523	71
1XXX	Total liabilities	$ 19,535,351	100	$ 20,337,473	100
Code	LIABILITIES AND EQUITY
CURRENT LIABILITIES
2100	Short-term loans (Note 4, 18)	$ 4,071,000	21	$ 3,691,000	18
2110	Short-term bills payable (Note 18)	184,000	1	200,000	1
2150	Notes payable	216	-	18,555	-
2160	Notes payables to related parties (Note 30)	15,665	-	28,439	-
2170	Accounts payable	87,473	-	273,033	1
2180	Accounts payables to related parties (Note 30)	82,152	-	111,140	1
2200	Other payables	454,231	2	482,408	2
2220	Loans payable to related parties (Note 30)	1,159,560	6	1,152,506	6
2230	Current income tax liabilities (Note 4, 23)	-	-	4,678	-
2250	Liability Provision - Current	1,495	-	-	-
2280	Lease liabilities - Current (Note 4, 15)	6,689	-	5,714	-
2320	Long-term liabilities - Current portion (Note 4, 18)	322,054	2	321,588	2
2399	Other current liabilities	106,320	1	131,140	1
21XX	Total current liabilities	6,490,855	33	6,420,201	32
NONCURRENT LIABILITIES
2540	Long-term borrowings (Note 18)	1,765,133	9	1,333,187	6
2570	Deferred income tax liabilities - Noncurrent (Note 4, 23)	113,874	1	116,278	1
2580	Lease liabilities - Noncurrent (Note 4, 15)	74,494	-	6,690	-
2640	Net defined liabilities - Noncurrent (Note 4, 19)	243,081	1	257,807	1
2645	Guarantee deposits	5,531	-	5,531	-
2670	Other noncurrent liabilities	952	-	816	-
25XX	Total noncurrent liabilities	2,203,065	11	1,720,309	8
2XXX	Total liabilities	8,693,920	44	8,140,510	40
EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT (Note 20)
Capital stock
3110	Capital - Common stock	9,955,950	51	9,955,950	49
3200	Capital surplus	119,259	1	114,773	-
Retained earnings
3310	Appropriated as legal capital reserve	638,207	3	619,739	3
3320	Appropriated as special capital reserve	95,444	1	40,464	-
3350	(Accumulated losses)/Unappropriated earnings	(711,450)	(4)	184,677	1
3300	Total retained earnings	22,201	-	844,880	4
3400	Others	(481,829)	(3)	(54,980)	-
3500	Treasury stock	(28,470)	-	(28,470)	-
31XX	Equity attributable to shareholders of the parent	9,587,111	49	10,832,153	53
36XX	NON-CONTROLLING INTERESTS (Note 20)	1,254,320	7	1,364,810	7
3XXX	Total equity	10,841,431	56	12,196,963	60
TOTAL LIABILITIES AND EQUITY		$ 19,535,351	100	$ 20,337,473	100

The accompanying notes are an integral part of the consolidated financial statements

(Please refer to the audit report dated March 16, 2026, issued by Deloitte Touche, Taipei, Taiwan.)

LEALEA ENTERPRISE CORPORATION LIMITED AMD SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For The Years Ended December 31, 2025 and 2024

(In Thousands of New Taiwan Dollars, Except Earnings per Share)

Code		2025		2024
		Amount	%	Amount	%
4000	OPERATING REVENUE (Note 4, 21, 30)	$ 7,113,054	100	$ 8,269,877	100
5000	COST OF REVENUE (Note 9, 30)	6,932,041	98	8,034,045	97
5900	GROSS PROFIT	181,013	2	235,832	3
5910	Realized profit (loss) from transactions with associates	4,111	-	4,466	-
5950	REALIZED GROSS PROFIT	185,124	2	240,298	3
	OPERATING EXPENSE (Note 8, 30)
6100	Marketing expenses	281,526	4	334,734	4
6200	General and administrative	236,353	3	241,564	3
6300	Research and development	49,295	1	49,787	1
6450	Expected credit impairment loss	139	-	939	-
6000	Total operating expenses	567,313	8	627,024	8
6900	OPERATING LOSS	( 382,189 )	( 6 )	( 386,726 )	( 5 )
	NON-OPERATING INCOME AND EXPENSE (Note 22, 30)
7100	Interest income	37,762	-	54,042	1
7140	Gain recognized in bargain purchase transaction - Affiliated associations acquisition	62,733	1	42,716	1
7190	Other income	189,549	3	186,545	2
7020	Other gains and losses	( 586,615 )	( 8 )	357,630	4
7050	Finance costs	( 122,760 )	( 2 )	( 93,594 )	( 1 )
7060	Share of profit (loss) of associates and joint ventures accounted for using equity method	( 158,387 )	( 2 )	103,784	1
7000	Total non-operating income and expenses	( 577,718 )	( 8 )	651,123	8
7900	NET (LOSS) PROFIT BEFORE INCOME TAX	( 959,907 )	( 14 )	264,397	3
7950	INCOME TAX PROFIT (EXPENSE) (Note 4, 23)	69,148	1	( 18,156 )	-
8200	NET INCOME (LOSS) PROFIT	( 890,759 )	( 13 )	246,241	3

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Code		2025		2024
		Amount	%	Amount	%
OTHER COMPREHENSIVE INCOME (LOSS)
8310	Items that will not be reclassified subsequently to profit or loss
8311	Remeasurement of defined benefit obligation	$ 1,738	-	$ 26,634	-
8320	Share of other comprehensive loss of associates and joint ventures accounted for using equity method	( 350,173 )	( 5 )	( 163,702 )	( 2 )
8360	Items that may be reclassified subsequently to profit or loss
8361	Exchange differences arising on translation of foreign operations	( 153,404 )	( 2 )	40,424	1
8367	Unrealized gains (losses) from investments in debt instruments measured at fair value through other comprehensive income	948		( 1,525 )	-
8370	Share of other comprehensive income of associates and joint ventures accounted for using equity method	133	-	( 200 )	-
8300	Other comprehensive loss for the year, net of income tax	( 500,758 )	( 7 )	( 98,369 )	( 1 )
8500	TOTAL COMPREHENSIVE INCOME FOR THE YEAR	($ 1,391,517 )	( 20 )	$ 147,872	2
NET INCOME (LOSS) ATTRIBUTABLE TO:
8610	Shareholders of the parent	($ 772,374 )	( 11 )	$ 272,542	3
8620	Non-controlling interests	( 118,385 )	( 2 )	( 26,301 )	-
8600		($ 890,759 )	( 13 )	$ 246,241	3
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:
8710	Shareholders of the parent	($ 1,209,832 )	( 17 )	$ 171,303	2
8720	Non-controlling interests	( 181,685 )	( 3 )	( 23,431 )	-
8700		($ 1,391,517 )	( 20 )	$ 147,872	2
EARNINGS PER SHARE (Note 24) FROM CONTINUING OPERATION
9710	Basic earnings per share	($ 0.78 )		$ 0.28
9810	Diluted earnings per share	($ 0.78 )		$ 0.28

The accompanying notes are an integral part of the consolidated financial statements. (Please refer to the audit report dated March 16, 2026, issued by Deloitte Touche, Taipei, Taiwan.)

LEALEA ENTERPRISE CORPORATION LIMITED AMD SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGE IN EQUITY

For The Years Ended December 31, 2025 and 2024

(In Thousands of New Taiwan Dollars)

Code	Equity Attributable to Shareholders of the Parent
		Capital Stock-Common Stock		Capital Surplus	Retained Earnings			Foreign Currency Translation Reserve	Unrealized Gain (Loss) on Financial Assets at Fair Value Through Oths Comprehensive Income	Treasury Stock	Total Equity Attributable To Shareholders Of The Parent	Non-controlling Interests	Total Equity
		Shares (In Thousands)	Amount		Legal Capital Reserve	Special Capital Reserve	(Unappropriated deficit)
A1	BALANCE DECEMBER 31, 2024	995,595	9,955,950	97,220	619,739	60,136	(139,290)	(138,456)	216,468	(28,470)	10,643,297	1,303,899	11,947,196
B3	2023 Appropriation of earnings
	Legal special capital reserve	-	-	-	-	(19,672)	19,672	-	-	-	-	-	-
C01	Cash dividends to shareholders of subsidiaries	-	-	-	-	-	-	-	-	-	-	(1,980)	(1,980)
C7	Adjustments to other capital surplus:
	Adjustments to share of changes in equities of associates	-	-	9,310	-	-	-	-	-	-	9,310	(411)	8,899
M7	Changes in ownership interests in Li Ling's subsidiaries (Note 23)	-	-	-	-	-	-	-	-	-	-	86,733	86,733
Q1	Disposal of investments in equity instruments at fair value through other comprehensive income, accounted for using equity method	-	-	-	-	-	4,083	-	(4,083)	-	-	-	-
M3	Disposal of investments accounted for using equity method	-	-	8,243	-	-	-	-	-	-	8,243	-	8,243
D1	Net income (loss) in 2024	-	-	-	-	-	272,542	-	-	-	272,542	(26,301)	246,241
D3	Other comprehensive income (loss) in 2024, net of income tax	-	-	-	-	-	27,670	29,041	(157,950)	-	(101,239)	2,870	(98,369)
D5	Total comprehensive income (loss) in 2024	-	-	-	-	-	300,212	29,041	(157,950)	-	171,303	(23,431)	147,872
Z1	BALANCE DECEMBER 31, 2024	995,595	$ 9,955,950	$ 114,773	$ 619,739	$ 40,464	$ 184,677	($ 109,415)	$ 54,435	($ 28,470)	$ 10,832,153	$ 1,364,810	$ 12,196,963
B1	2024 Appropriation of earnings
	Legal capital reserve	-	-	-	18,468	-	(18,468)	-	-	-	-	-	-
B3	Reversal of special reserve	-	-	-	-	54,980	(54,980)	-	-	-	-	-	-
O1	Cash dividends to shareholders of subsidiaries	-	-	-	-	-	-	-	-	-	-	(8,910)	(8,910)
C7	Adjustments to other capital surplus:
	Adjustments to share of changes in equities of associates	-	-	4,486	-	-	-	-	-	-	4,486	(1,944)	2,542
M7	Changes in ownership interests in Li Ling's subsidiaries (Note 12, 27)	-	-	-	-	-	(39,696)	-	-	-	(39,696)	39,696	-
M7	Changes in ownership interests In LIBOLON Energy's subsidiaries (Note 26)	-	-	-	-	-	-	-	-	-	-	42,353	42,353
Q1	Disposal of investments in equity instruments at fair value through other comprehensive income, accounted for using equity method	-	-	-	-	-	(13,505)	-	13,505	-	-	-	-
D1	Net income (loss) in 2025	-	-	-	-	-	(772,374)	-	-	-	(772,374)	(118,385)	(890,759)
D3	Other comprehensive income (loss) in 2025, net of income tax	-	-	-	-	-	2,896	(109,280)	(331,074)	-	(437,458)	(63,300)	(500,758)
D5	Total comprehensive income (loss) in 2025	-	-	-	-	-	(769,478)	(109,280)	(331,074)	-	(1,209,832)	(181,685)	(1,391,517)
Z1	BALANCE DECEMBER 31, 2025	995,595	$ 9,955,950	$ 119,259	$ 638,207	$ 95,444	($ 711,450)	($ 218,695)	($ 263,134)	($ 28,470)	$ 9,587,111	$ 1,254,320	$ 10,841,431

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

(Please refer to the audit report dated March 16, 2026, issued by Deloitte Touche, Taipei, Taiwan.)

LEALEA ENTERPRISE CORPORATION LIMITED AMD SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For The Years Ended December 31, 2025 and 2024
(In Thousands of New Taiwan Dollars)

Code	CASH FLOWS FROM OPERATING ACTIVITIES	2025	2024
A10000	Income before income tax	($ 959,907)	$ 264,397
A20010	Adjustments to reconcile profit (loss)
A20100	Depreciation expense	641,613	627,781
A20200	Amortization expense	57,571	55,008
A20300	Expected credit impairment losses	139	939
A20900	Finance costs	122,760	93,594
A21200	Interest income	( 37,762)	( 54,042)
A21300	Dividend income	( 4,298)	( 2,942)
A20400	Gain on financial assets or liabilities at fair value through profit or loss, net	( 4,357)	( 94,306)
A22300	Share of profits of associates & joint ventures	158,387	( 103,784)
A22500	Loss (gain) on disposal or retirement of property, plant and equipment	( 2,403)	3,201
A23100	Disposal of gain on investment	( 9,509)	( 4,003)
A23700	Impairment gain on inventory	( 39,543)	( 7,587)
A23700	Impairment losses of property, plant and equipment	194,131	-
A23700	Goodwill impairment loss	133,348	-
A23900	Unrealized gain from inter-affiliated accounts	( 4,111)	( 4,466)
A24100	Gain on foreign exchange	2,382	33,128
A29900	Gain recognized in bargain purchase transaction	( 62,733)	( 42,716)
A29900	Lease modification benefits	( 32)	-
A30000	CHANGES IN OPERATING ASSETS AND LIABILITIES
A31115	Mandatorily measured at financial assets at fair value through profit or loss	( 602,420)	( 16,861)
A31130	Notes receivable	30,838	100,402
A31150	Accounts receivable	142,988	( 181,348)
A31160	Accounts Receivable from related parties	70,138	-
A31200	Inventories	150,606	123,176
A31230	Prepayments	73,539	( 167,932)
A31240	Other current assets	( 540)	4,024
A31250	Other financial assets	110,621	( 93,625)
A31990	Other assets	8,986	702

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Code		2025	2024
A32130	Notes and bills payable	($ 18,339)	($ 77,396)
A32140	Notes payable to related parties	( 12,774)	-
A32150	Accounts payable	( 191,729)	( 194,887)
A32160	Accounts payable to related parties	( 28,988)	-
A32180	Other payables	( 21,064)	23,157
A32200	Liability Provision	1,495	-
A32230	Other current liabilities	( 24,628)	( 485)
A32240	Net defined benefit liability	( 12,988)	821
A32990	Other liabilities	-	( 90)
A33000	Net cash generated by operating activities	( 138,583)	283,860
A33100	Interest received	38,575	55,110
A33200	Dividends received from associates	38,189	35,466
A33200	Dividend received	4,298	2,942
A33300	Interest paid	( 121,492)	( 92,969)
A33500	Income tax received (paid)	( 10,288)	( 7,708)
AAAA	Net cash flows from operating activities	( 189,301)	276,701
CASH FLOWS FROM INVESTING ACTIVITIES
B01800	Acquisition of long-term equity investment using the equity method	( 103,183)	( 279,376)
B01900	Disposal of long-term equity investments using the equity method	143,568	70,640
B02200	Net Cash inflow (outflow) acquisition of subsidiaries	37,228	( 5,009)
B02700	Acquisition of property, plant and equipment	( 252,131)	( 954,476)
B02800	Disposal of property, plant and equipment	7,490	2,867
B03800	Increase (decrease) in guarantee deposits paid	3,311	( 7,061)
B04300	Decrease (increase) in advance loans to related parties	( 408,018)	113,000
B04500	Acquisition of intangible asset	( 1,061)	( 1,869)
B04600	Proceeds from disposal of intangible assets	146	-
B06500	Increase in other noncurrent assets	-	( 5,296)
BBBB	Net cash used in investing activities	( 572,650)	( 1,066,580)
CASH FLOWS FROM FINANCIING ACTIVITIES
C00100	Increase in short-term loans	380,000	164,000
C00500	Decrease in short-term bills payable	( 16,000)	( 30,000)
C01600	Long-term borrowings	4,454,000	1,800,000
C01700	Repayment of long-term borrowings	( 4,021,588)	( 1,763,343)
C03100	Increase (decrease) in guarantee deposits received	510	( 2,478)
C03700	Increase (decrease) in Loans payable to related parties	( 112,987)	187,926
C04020	Repayment of the principal portion of lease liabilities	( 8,148)	( 17,678)

(Continued from next page)

(Continued from previous page)

Code		2025	2024
C05800	Paying cash dividends to non-controlling interests	($ 8,910)	($ 1,980)
C09900	Minority Shareholding Changes	184	-
CCCC	Net cash used in financing activities	667,061	336,447
DDDD	EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	( 5,066 )	$ 28,065
EEEE	NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	( 99,956 )	( 425,367 )
E00100	CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR	650,496	1,075,863
E00200	CASH AND CASH EQUIVALENTS, END OF YEAR	$ 550,540	$ 650,496

The accompanying notes are an integral part of the consolidated financial statements

(Please refer to the audit report dated March 16, 2026, issued by Deloitte Touche, Taipei, Taiwan.)

LEALEA ENTERPRISE CORPORATION LIMITED AMD SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

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

1. GENERAL

Lealea Enterprise Corporation Limited (hereinafter referred to as LEALEA ENTERPRISE), a Republic of China (R.O.C.) corporation, was incorporated in 1979 with an initial capital of NT$16,000 thousand. After several capital increases the total capital was NT$9,955,950 thousand as of December 31, 2025. LEALEA ENTERPRISE is mainly engaged in the manufacturing and sales of polyester fully oriented yarn, polyester draw textured yarn, and polyester chip. Its factories are located in Zhongli District, Taoyuan City and Fangyuan Township, Changhua County. In addition, LEALEA ENTERPRISE has added a construction department since the second half of 2004, and businesses such as cooperating with related companies to jointly develop and sell residential properties. On August 1990, LEALEA ENTERPRISE shares were officially listed and traded on the Taiwan Stock Exchange (TWSE).

The expression currency of the consolidated financial report and the functional currency of LEALEA ENTERPRISE are both in New Taiwan Dollars.

2. THE AUTHORIZATION OF FINANCIAL STATEMENTS

The accompanying consolidated financial statements were approved and authorized by the Board of Directors on March 16, 2026.

3. APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS

a. Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, "IFRSs") endorsed and issued into effect by the Financial Supervisory Commission (FSC).

IAS 21 Amendment: "Lack of Exchangeability"

The application of the IAS 21 amendment on "lack of Exchangeability" will not result in a material change in the accounting policies of the consolidated company.

b. The IFRSs endorsed by FSC with effective date starting 2026.

New, Revised or Amended Standards and Interpretations	Effective Date Issued by IASB
Amendments to IFRS 9 and IFRS 7: "Amendments to the classification and measurement of financial instruments"	January 1, 2026
Amendments to IFRS 9 and IFRS 7 concerning "Contracts involving natural electricity"	January 1, 2026
"Annual Improvements to IFRS Accounting Standards – Volume 11" IFRS 17 "Insurance Contracts" (including amendments for 2020 and 2021)	January 1, 2026
January 1, 2023

As of the date of this consolidated financial statement, the consolidated company continues to assess the impact of the revisions on its financial position and financial performance, and the relevant impacts will be disclosed upon completion of the assessment.

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

New, Revised or Amended Standards and Interpretations	Effective Date Issued by IASB (Note 1)
Amendments to IFRS 10 and IAS 28: “Sale or investment of assets between an investor and its affiliates or joint ventures”	Undecided
IFRS 18 "Presentation and Disclosure in Financial Statements"	January 1, 2027 (Note 2)
IFRS 19 "Subsidiaries without public liability: Disclosure" (including the 2025 amendment)	January 1, 2027
IAS 21 Amendment: "Converted to a highly inflated currency"	January 1, 2027

Note 1: Unless otherwise specified, the above-mentioned new/revised/amended standards and interpretations will first apply to annual reporting period beginning after each date.

Note 2: On September 25, 2025, the Financial Supervisory Commission (FSC) announced that Taiwanese companies should adopt IFRS 18 from January 1, 2028, but may choose to adopt it earlier if the FSC approves IFRS 18.

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

IFRS 18 will replace IAS 1 "Presentation of Financial Statements". Major changes to the standard include:

The merging company should assess whether it has specific major operating activities involving investments in specific types of assets and providing financing to customers, and accordingly classify the income and expense items in the profit and loss statement into categories such as operating, investing, financing, income tax, and discontinued units.
The profit and loss statement should present operating profit or loss, pre-tax profit or loss before financing, and the subtotal and total of profit or loss.
The guidelines provide reinforcement of consolidation and subdivision requirements: Consolidating companies must identify the assets, liabilities, equity, income, expenses, and cash flows arising from individual transactions or other events, and classify and consolidate them based on common characteristics so that each line item presented in the principal financial statements has at least one similar characteristic. Items with dissimilar characteristics should be subdivided in the principal financial statements and notes. Consolidating companies should only label such items as "Other" when no more informative identifier can be found.
Increased disclosure of management-defined performance measures: When conducting public communications outside the financial statements and communicating management's views on a certain aspect of the overall financial
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performance of the consolidated company to users of the financial statements, the consolidated company shall disclose information related to management-defined performance measures in a single note to the financial statements, including a description of the measure, how it is calculated, its reconciliation with the subtotals or totals specified in IFRS accounting standards, and the income tax and non-controlling interest effects of the related reconciliation items.

In addition, the IAS 7 "Statement of Cash Flows" has been amended as follows:

When a consolidated company prepares its cash flow from operating activities using the indirect method, it should use operating profit or loss as the starting point for adjustment.
Interest and dividends received by the merged company should be classified as investing activities, while interest and dividends paid should be classified as financing activities. If the merged company is assessed to have a specific principal operating activity, the types of dividend income, interest income, and interest expense reported in the income statement must be considered to determine the classification of dividends received, interest received, and interest paid in the cash flow statement. However, each of the above cash flows can only be classified in a single activity in the cash flow statement.

As of the date the accompanying parent company only financial statements were authorized for issue, the Company continues in evaluating the impact on its financial position and financial performance as a result of the initial adoption of the aforementioned standards or interpretations. The related impact will be disclosed when the Company completes the evaluation.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Statement of Compliance

The accompanying consolidated financial statements have been prepared in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the IFRSs endorsed by the FSC with the effective dates (collectively, "Taiwan-IFRSs").

b. Basis of Preparation

The accompanying consolidated financial statements have been prepared on the historical cost basis except for financial instruments that are measured at fair values. Values and the net defined benefit liability recognized by the present value of the defined benefit obligation less the present value of plan assets.

Fair value measurements are categorized into a three-level hierarchy, according to the observability and importance of the relevant input values, as follows:

(1) Level 1 inputs are unadjusted quoted prices in active markets for identical asset or liability that the entity can access at the measurement date.
(2) Level 2 inputs are inputs other than the quoted prices in determined in level 1 that are directly or indirectly observable for that asset or liability.
(3) Level 3 inputs are unobservable inputs for the asset or liability.

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c. Classification of Current and Noncurrent Assets and Liabilities

Current assets are:

(1) Assets held for trading purposes.

(2) Assets expected to be realized within 12 months after the balance sheet date.

(3) Cash and cash equivalents (but excluding those restricted for exchange or settlement of liabilities more than 12 months after the balance sheet date).

Current liabilities are:

(1) Obligations incurred for trading purposes.

(2) Obligations expected to be settled within 12 months after the balance sheet date. (It is still a current liability even if an agreement to refinance or to reschedule payments on a long-term basis is completed after the balance sheet date and before the financial report is issued).

(3) Liabilities for which there is no substantive right to defer settlement for at least 12 months after the balance sheet date.

Those not belonging to the above-mentioned current assets or current liabilities are classified as noncurrent assets or noncurrent liabilities.

The Company is engaged in the construction projects with business cycle longer than one year. The assets and liabilities related to the construction businesses are classified as a current or noncurrent based on the time frame of normal business cycles.

d. Basis of Consolidation

The consolidated financial statements incorporate the financial statements of LEALEA and entities controlled by LEALEA (its subsidiaries). Income and expenses of subsidiaries acquired or disposed of are included in the consolidated statement of comprehensive income from the effective date of acquisition and up to the effective date of disposal, as appropriate. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Company. When preparing the consolidated financial report, all intra-group transactions, balances, income and expenses are eliminated in full on consolidation. Total comprehensive income of subsidiaries is attributed to the shareholders of the parent and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

Changes in the Company's ownership interests in subsidiaries that do not result in the Company losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the Company's interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to shareholders of the parent.

Please refer to Note 12 and Table 7 for the details of subsidiaries, shareholding ratio and business items.

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e. Business Combinations

Business combinations are accounted for using the acquisition method. The acquisition-related costs are considered as expenses in the periods in which the costs are incurred and the services are received.

Goodwill is measured as the excess of the fair value of the consideration transferred, the amount of any non-controlling interests in the acquiree, and the acquisition date fair value of the previously held equity interest in the acquiree, which exceeds the share acquired by the Company in the fair value of the entity's identifiable net assets and commitments at the acquisition date. If, after reassessment, the net amount of the acquiree's identifiable assets and liabilities assumed at the acquisition date still exceeds the consideration transferred, the excess of the acquisition date fair value related to the acquiree's non-controlling interests and previously held equity interests in the acquiree will be accounted as bargain purchase benefit and immediately recognized in profit or loss.

The non-controlling benefits that have the current ownership interest in the acquiree and have the right to share the net assets of the acquiree in proportion at the time of liquidation are measured at fair value. Other non-controlling interests are measured at fair value.

When the consideration transferred by the Company in a business combination includes assets or liabilities arising from the contingent consideration agreement, the contingent consideration is measured at the fair value on the acquisition date and as part of the transfer consideration paid in exchange for the acquiree. If a change in the fair value of contingent consideration is treated as an adjustment during the measurement period, it will be accounted as a retrospective adjustment of the acquisition cost and a relative adjustment of goodwill. The measurement period adjustment refers to the adjustment aroused during the "measurement period" (which cannot exceed one year from the acquisition date) due to additional information obtained after the acquisition date that affects the facts or circumstances as they existed at the acquisition date.

If changes in the fair value of contingent consideration are not treated as adjustments during the measurement period, the subsequent treatment will depend on the classification of the contingent consideration. For those classified as equity and listed in the capital reserve, the contingent consideration of the options shall not be remeasured, and its subsequent delivery will be adjusted in the equity and transferred to the capital reserve—the premium of the issuance of ordinary shares. Other contingent consideration is measured at fair value on the subsequent balance sheet date, and changes in fair value are recognized in profit or loss.

A business combination achieved in stages is achieved by remeasurement of the merging company's previously held interest in the acquiree at fair value at the acquisition date and any resulting gain or loss is recognized in profit or loss. Amounts recognized in other comprehensive income prior to the acquisition date as a result of a previously held interest in the acquiree are recognized on the same basis as if the amalgamating company had directly disposed of its previously held interest.

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f. Foreign Currencies

While preparing financial statements, for those entities trade in currencies other than the functional currency of the entity, foreign currencies are converted into functional currency in accordance with the rates of exchange as on the date of initial transactions.

Foreign currency monetary items are converted in accordance with the rates of exchange as on the date of balance sheet. The exchange differences arising from the delivery or the conversion of monetary items are accounted into current profit or loss.

Monetary items receivable or payable to foreign operating institutions for which the settlement of the item was currently unplanned or unlikely to happen in the foreseeable future (thus it forms the part of the net investment of that foreign operating agencies), the exchange difference is originally listed as other comprehensive profit and loss, and the disposing of the net investment of those items should be reclassified subsequently from the equity to the profit and loss.

Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined and the resulting conversion differences are listed in the current profit and loss. However, if the fair value change is recognized in other comprehensive gains and losses, the resulting conversion differences are listed in other comprehensive profit and loss.

Non-monetary items measured at historical cost in a foreign currency are translated in accordance with the rates of exchange as on the date of initial transactions and will not be converted again.

When preparing the consolidated financial statements, the assets and liabilities of foreign operations (including subsidiaries, affiliates, joint ventures, or branches that operate in a country or currency different from the company) are converted into New Taiwan dollar in accordance with the rates of exchange as on the date of balance sheet. The income and expense items are translated at the average exchange rate for the period, and the exchange differences arising on the translation are recognized in other comprehensive profits and losses (and respectively attributable to the owners and non-controlling interests of the Company).

Any goodwill and any fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation, and are calculated and translated in accordance with the closing rates of exchange as on the date of balance sheet. The exchange differences arising on the translation are recognized in other comprehensive profits and losses.

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g. Inventories

Inventories refer to raw materials and supplies, finished goods, and work in progress. Inventories are stated at the lower of cost or net realizable value (NVR). With the exception of inventory of the same category, individual items shall be assessed when comparing the cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale. The cost of inventory is calculated using weighted average method.

h. Investment in Associates

An associate is an entity over which the Company has significant influence but is not a subsidiary.

The Company adopts the equity method for investments in associates. Under the equity method, an investment in an associate is initially recognized in the consolidated statements of financial position at cost and adjusted thereafter to recognize the Company's share of profit or loss and other comprehensive income of the associate as well as the distribution received. The Company also recognizes its share in the changes in the equities of associates.

Any excess of the cost of acquisition over the Company's share of the net fair value of the identifiable assets, liabilities and contingent liabilities of an associate recognized at the date of acquisition is recognized as goodwill. Such goodwill is included in the book value of the investment and cannot be amortized. Any excess of the Company's share of the net fair value of the identifiable assets, liabilities and contingent liabilities over the cost of acquisition, is recognized immediately in profit or loss.

When the Company subscribes to additional shares in an associate at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment differs from the amount of the Company's proportionate interest in the net assets of the associate. The Company adopts the equity method to record such a difference as an adjustment to equity and investments with the corresponding amount charged or credited to capital surplus. If the Company's ownership interest is reduced due to the additional subscription to the shares of associate by other investors, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate shall be reclassified to profit or loss on the same basis as would be required if the associate had directly disposed of the related assets or liabilities. If the capital reserve is used for the aforementioned adjustment and the balance of capital reserve derived from investment accounted for using equity method is not sufficient, the difference shall be registered under retained earnings.

When the Company's share of losses in the associate equals or exceeds its investment in the equity of the associate (including the carrying amount of the investment in the associate under the equity method and other long-term interests that, in substance, form part of the Company's net investment in the associate), the Company shall cease the recognition of further losses. The Company shall only recognize additional losses and liabilities within the scope of legal obligations, inferential obligations, or payments made on behalf of associates.

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To assess impairment, the Company must consider the overall carrying amount (including goodwill) of the investment as a single asset to compare the recoverable and carrying amounts for the impairment test. The recognized impairment shall not be allocated to any asset, including goodwill, which constitutes part of the carrying amount of the investment. Any reversal of the impairment loss has to be considered after subsequent increases in the recoverable amount of investment.

The Company shall suspend the use of the equity method on the day that its investment is no longer an associate and shall measure its retained equity in the original associate through fair value. The difference between the fair value, the amount gained from the disposal, and the carrying amount of the investment on the day the equity method ceases to apply shall be listed into the profit or loss of the current period. In addition, the basis accounting policies for amounts of the associate shown in other comprehensive profit or loss accounts shall follow the same basis applicable to the Company for direct disposal of related assets or liabilities of associates. For investment in associates that turns them into joint ventures or investment in joint ventures that turns them into associates, the Company shall continue to use the equity method and shall not reassess retained equity.

Profit or loss in upstream and downstream transactions between the Company and the associates or transactions between associates needs to be shown in the consolidated financial statements when not affecting the interests of the Company or the associate.

Additionally, investment profits and losses recognized for the intercompany stockholders of subsidiaries are acknowledge as the investment gains and losses of each subsidiary in accordance with conventional practice.

i. Property, Plant and Equipment

Property, plant and equipment are stated at cost and subsequently measured at cost less accumulated depreciation and impairment losses.

Property, plant and equipment under construction are recognized at costs less accumulated impairment losses. The costs shall include professional service expenses and the cost of loans eligible for capitalization. Such assets shall be classified into appropriate property, plant and equipment categories upon completion and reaching the expected use status and the depreciation shall begin.

The Company shall adopt the straight-line basis or the units of production method for the depreciation of each property, plant and equipment in its useful life based on the nature of such property. If the lease period is shorter than the service life, depreciation shall be provided during the lease period. The Company shall conduct at least one annual review at the end of each year to assess the estimated useful life, residual value, and depreciation methods. The effects of changes in accounting estimates shall be applied prospectively.

When derecognizing property, plant, and equipment, the difference between the net disposal proceeds and the carrying amount of the asset shall be recognized in loss or profit.

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j. Investment property

Investment property is held to earn rent or capital appreciation or both. Investment property also includes the land currently held for undecided future use.

Personally-owned investment property is measured by the original cost (including transaction cost), and the subsequent cost is measured by the amount after deducting accumulated depreciation and accumulated impairment loss. Investment property adopts the straight line basis for depreciation.

When the investment property is excluded, the difference between the net disposal price and the book value of the asset is recognized as profit or loss.

k. Intangible Assets

(1) Acquired Separately

Separately acquired intangible assets with finite useful lives are carried at cost less accumulated amortization and accumulated impairment losses. The amortization of intangible assets within the useful life is in accordance with the straight-line method. The Company shall review the estimated useful life, residual value, and amortization method at least at the end of each year and defer the effect of any changes in applicable accounting estimates. Intangible assets with non-determined useful life are carried at cost less accumulated impairment losses.

(2) Derecognition

When intangible assets are derecognized, the difference between the net disposal price and the asset's carrying amount is recognized in current profit and loss.

l. Goodwill

Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of the business less accumulated impairment losses, if any.

For the purpose of impairment testing, goodwill is allocated to each of the Company's cash-generating units or groups of cash-generating units that are expected to benefit from the synergies of the combination.

The cash-generating unit of amortized goodwill is tested for impairment annually (and when there is an indication that the cash generating unit may be impaired) by comparing the carrying amount of the unit containing goodwill with its recoverable amount. However, if the goodwill allocated to a cash-generating unit was acquired in a business combination during the current annual period, that unit shall be tested for impairment before the end of the current annual period. If the recoverable amount of a cash-generating unit is less than its carrying amount, the difference is allocated first to reduce the carrying amount of any goodwill allocated to such cash generating unit and then to the other assets of the cash generating unit pro rata based on the carrying amount of each asset in the cash generating unit. Any impairment loss for goodwill is recognized directly in profit or loss. An impairment loss recognized for goodwill is not reversed in

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subsequent periods.

At the time of disposal of related cash-generating units, the amount of goodwill related the disposition of the operation that is included in the carrying amount of operation will be determined and accounted as disposition of profits and losses.

m. Impairment of Assets related to Property, Plant and Equipment, Right-of-Use Assets, Intangible Assets (except Goodwill) and Contract Costs

On each balance sheet date, the Company reviews the carrying amounts of its property, plant and equipment, right-of-use assets and intangible assets (except goodwill) to determine whether there is an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated. When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Shared assets are allocated to the smallest group of cash-generating units in accordance with a reasonable and consistent allocation basis.

For intangible assets that have indefinite useful lives and are not yet available for use, impairment tests are conducted at least annually and when there are indications of impairment.

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

When an impairment loss subsequently reverses, the carrying amount of the asset, cash-generating unit, and contract cost related asset shall be increased to the revised recoverable amount, but the increased carrying amount shall not exceed the carrying amount (minus amortization or depreciation) of the asset, cash generating unit, or contract cost related asset that was not impaired in prior years. A reversal of an impairment loss is recognized immediately in profit or loss.

n. Financial Instruments

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

Financial assets and liabilities are initially recognized at fair values. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition or issuance of financial assets or financial liabilities at fair value through profit or loss are also included in the originally recognized amount of financial assets or financial liabilities.

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(1) Financial assets

Regular trading of financial assets shall be recognized and derecognized in accordance with transaction date accounting.

(1.1) Measurement types

Financial assets held by the Company are classified into these categories: financial assets measured at fair value through profit and loss, financial assets measured at amortized cost, investment in debt instruments measured at fair value through other comprehensive gains and losses, and investments in equity instruments measured at fair value through other comprehensive profits and losses.

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

This category includes financial assets that are mandatorily required to measure at fair value through profit or loss and designed to be measured at fair value through profit or loss.

The financial assets that are mandatorily required to measure at fair value through profit or loss include the equity instrument investment that is not specified to be measured at fair value through other comprehensive profits and losses, and investment in debt instruments that cannot meet the criteria of measuring assets at amortized cost or at fair value through other comprehensive profits and losses.

The designation as at fair value through profit or loss at the time of initial recognition is for eliminating or significantly reducing measurement or recognition inconsistencies.

Financial assets at fair value through profit or loss are measured at fair value. The dividends and interest generated are recognized in other income and interest income respectively, and the profit or loss generated by remeasurement is recognized in other benefits and losses. Please refer to Note 29 for the method of determining the fair value.

(1.1.2) Financial assets measured at amortized cost

The financial assets invested by the Company shall be classified as financial assets measured at amortized cost if both conditions below are met:

(a) Where the financial asset is held under a certain business model with the purpose of holding financial assets to collect contract cash flow; and

(b) The cash flow generated on specific dates specified in contractual terms is completely used to pay for the principal and interest for principal in external circulation.

After financial assets measured at amortized cost (including cash and cash equivalents, bills and accounts receivable measured at amortized cost) on initial recognition, they shall be measured through the effective interest rate approach to

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determine the total carrying amount minus the amortized cost of any impairment loss. All foreign currency exchange gains and losses shall be recognized in profit or loss.

Except for the two following conditions, income from interest shall be calculated based on the effective interest rate multiplied by the total carrying amount of financial assets:

(a) The interest income of a credit-impaired financial asset purchased or provided for the founding is calculated by multiplying the credit-adjusted effective interest rate by the amortized cost of the financial asset.

(b) Financial assets that are not credit impairment from purchases or at the time of founding but subsequently become credit impairments shall be calculated by multiplying the effective interest rate in the reporting period after the credit impairment by the cost after the amortization of financial assets.

Credit impaired financial assets refer to the issuer or debtor who has experienced major financial difficulties, defaults, the debtor is likely to apply for bankruptcy or other financial reorganization, or the active market for that financial assets disappears due to financial difficulties.

Cash equivalents include time deposits with maximum maturity of 3 months from the date of acquisition, which are high liquid, can be converted into a fixed amount of cash at any time and have relatively low risk in price changes. They are used for satisfying short-term cash commitments.

Demand deposits that are subject to restrictions on their use as a result of contracts with third parties are also considered cash unless such restrictions change the nature of the deposit so that it no longer meets the definition of cash.

(1.1.3) Investment in debt instruments measured at fair value through other comprehensive profits and losses.

The debt instruments invested by the Company shall be classified as financial assets measured at fair value through other comprehensive profits and losses if both conditions below are met:

(a) Where the financial asset is held under a certain business model with the purpose of collecting contractual cash flow and selling financial assets; and

(b) The cash flow generated on specific dates specified in contractual terms is completely used to pay for the principal and interest for principal in external circulation.

The investment in debt instruments measured at fair value through other comprehensive profits and losses is measured at fair value. The changes in the carrying amount belong to the interest income calculated by the effective interest method. Foreign currency exchange gains and losses and impairment losses or reversal benefits are recognized in profit and loss. The remaining changes are recognized in other comprehensive profit and loss, and are reclassified as profit and loss at the time of investment disposal.

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(1.1.4) Investments in equity instruments measured at fair value through other comprehensive profits and losses.

The Company may make an irrevocable choice on initial recognition and designate the investments in equity instruments that are not held for trading and not recognized by the acquirer of a business combination or having consideration to be measured at fair value through other comprehensive profits and losses.

Investments in equity instruments measured at fair value through other comprehensive profits and losses are subsequently measured at fair value with profits and losses arising from changes in fair value recognized in other comprehensive income and accumulated in other equity. When disposing investments, the accumulated profits and losses are directly transferred to retained earnings without subsequently reclassifying to profit or loss.

Dividends on these investments in equity instruments at fair value through other comprehensive profits and losses are recognized in profit or loss when the rights of the Company to receive the dividends is established, unless the dividends clearly represent the recovery of part of the investment cost.

(1.2) Impairment of financial Assets and Contract Assets

On each balance sheet date, a loss allowance for expected credit loss is recognized for financial assets at amortized cost (including accounts receivable) and for investments in debt instruments that are measured at fair value through other comprehensive profits and losses.

The loss allowance for accounts receivable, lease receivable and contract assets receivable is measured at an amount equal to lifetime expected credit losses. For other financial assets, when the credit risk on the financial instrument has not increased significantly since initial recognition, a loss allowance is recognized at an amount equal to expected credit loss of a financial instrument within 12 months after the reporting date. If, on the other hand, there has been a significant increase in credit risk since initial recognition, a loss allowance is recognized at an amount equal to expected credit loss over the expected life of a financial instrument.

Expected credit losses are the average credit loss weighted by the risk of default all credit losses. The expected 12 months credit loss represents the expected credit loss arising from possible defaults of the financial instrument after reporting date within the next 12 months, while the expected lifetime credit loss represents the expected credit loss arising from all possible defaults of the financial instrument during the expected lifetime.

When the Company, for the purpose of internal credit risk management and without considering the collateral held, determines that the debtor is unable to pay off the debt in accordance with internal or external information, it means that financial asset has defaulted.

27 -

The Company recognizes an impairment loss in profit or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account, except for investments in debt instruments that are measured at fair value through other comprehensive profits and losses, for which the loss allowance is recognized in other comprehensive income and does not reduce the carrying amount of the financial asset.

(1.3) Derecognition of financial assets

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

On derecognition of a financial asset at amortized cost in its entirety, the difference between the carrying amount of the asset and the sum of the consideration received and receivable is recognized in profit or loss.

On derecognition of an investment in a debt instrument at fair value through other comprehensive profits and losses, the difference between the carrying amount of the asset and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognized in other comprehensive income is recognized in profit or loss. However, on derecognition of an investment in an equity instrument at fair value through other comprehensive profits and losses, the cumulative gain or loss that had been recognized in other comprehensive income is transferred directly to retained earnings, without recycling through profit or loss.

(2) Financial liabilities

(2.1) Subsequent assessment

Except for the following circumstances, all financial liabilities are measured at amortized cost by the effective interest method.

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include held for trading and designated as at fair value through profit or loss.

Financial liabilities held for trading are measured at fair value and the interest incurred is recognized in financial costs. Other benefits or losses arising from remeasurement are recognized in other benefits and losses. Please refer to Note 29 for the method of determining the fair value.

(2.2) Derecognition of financial liabilities

When derecognizing financial liabilities, the difference between its carrying amount and the paid consideration (including any transferred non cash assets or liabilities assumed) shall be recognized in profit or loss.

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(3) Derivative Financial Instruments

The derivative instruments signed by the Company include forward foreign exchange contracts, interest rate swap and cross currency swap, used for interest rate and exchange rate risk management for the Company.

Derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is signed and are subsequently remeasured at fair value on the balance sheet date. The benefits or losses arising from subsequent measurement are taken directly to profit or loss. However, for derivatives designated as effective hedging instruments, the point at which they are recognized in profit or loss will depend on the nature of the hedging relationship. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.

If derivative instruments are embedded in the host contract of an asset within the scope of IFRS 9, the overall contract determines the classification of financial assets. The derivative is treated as a stand-alone derivative if it is embedded in the host contract of an asset that is not within the scope of IFRS 9 (such as embedded in a financial liability host contract), meets the definition of a derivative, does not have risks and characteristics closely related to those of host contracts, and the mixed contracts are not measured at fair value through profit or loss.

o. Provision for liabilities

The amount recognized as a provision for liabilities is the best estimate of the expenditure required to pay off the obligation at the balance sheet date, taking into account the risks and uncertainties of the obligation. Provision for liabilities is measured as the discounted present value of optimal estimated cash flows to pay off obligations.

p. Revenue Recognition

After the Company identifies its performance obligations in contracts with customers, it shall amortize the transaction costs to each obligation in the contract and recognize revenue upon satisfaction of performance obligations.

Commodity sales revenue

Revenue from sale of goods comes from customers who have the right to set prices and use the goods, have the main responsibility for resale, and bear the risk of obsolescence. The Company recognizes revenue and accounts receivable at this point.

While processing of materials supplied by the clients, the control of the ownership of processed products has not been transferred, so revenue is not recognized when receiving materials.

Property sales within the normal business scope are to collect fixed transaction prices in installments and recognize contract liabilities. After considering major financial components, the revenue is recognized when each property is completed and delivered to the buyer.

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q. Leases

The Company assesses whether the contract is (or contains) a lease on the date of contract establishment.

(1) The Company as lessor

When the lease clause transfers almost all the risks and benefits incidental to ownership of the asset to the lessee, it is classified as a financial lease. All other leases are classified as operating leases.

In accordance with operating lease standards, lease payments after deduction of lease incentives are recognized as income on a straight-line basis over the relevant lease period. The original direct costs incurred in obtaining an operating lease are added to the carrying amount of the underlying asset and recognized as expenses on a straight-line basis during the lease term. Lease negotiation with the lessee is treated as a new lease from the effective date of lease modification.

Variable lease payments in lease agreement, that don't depend on indexes or rates, are recognized as income in the current period.

When the lease includes both land and building elements, the Company assesses whether almost all the risks and benefits incidental to the ownership of each element have been transferred to the lessee in order to assess the classification of each element as a financial lease or an operating lease.

Lease payments are apportioned to land and buildings based on the relative proportion of the fair value of the land and building lease rights on the date of contract establishment. If the lease payment can be allocated reliably to these two elements, each element is treated according to the applicable lease classification. If the lease payment cannot be allocated reliably between the two elements, then the entire lease is classified as a finance lease. However, if both of these elements clearly meet the operating lease standards, the entire lease is classified as an operating lease.

(2) The Company as lessee

Except for lease payments for low-value underlying asset leases and short-term leases that are subject to the applicable recognition exemption, the lease payments are recognized as expenses on a straight-line basis during the lease period, and other leases are recognized as the right-of-use asset and lease liability starting from commencement of the lease.

The right-of-use asset is initially measured at cost (including the original measured amount of the lease liability, the lease payment paid before commencement of the lease minus the lease incentives for compensation, the original direct cost and the estimated cost of restoring the underlying asset), and subsequently measured at the amount of cost minus accumulated depreciation and accumulated impairment losses, and adjust the remeasurement amount of the lease liability.

Right-of-use assets are depreciated on a straight-line basis from the

30 -

commencement date to the earlier of the commencement of the lease to the expiration of the useful life or the expiration of the lease term.

The lease liability is initially measured by the present value of lease payments (including fixed payments). If the implicit interest rate of the lease is easily determinable, the lease payment is discounted using that interest rate. If the interest rate is not easily determinable, the incremental borrowing rate of the lessee should be used.

Subsequently, the lease liability is measured on the amortized cost basis using the effective interest method, and the interest expense is amortized during the lease period. For lease modifications that are not treated as separate leases, the remeasurement of the lease liability due to lease scope reduction is to reduce the right-of-use asset and to recognize the profit and loss of the partial or full termination of the lease. The remeasurement of the lease liability due to other modifications is to adjust the right-of-use asset.

r. Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets are capitalized as part of the cost of the respective assets, until such time as the assets are substantially ready for their intended use or sale. The investment income of a specific loan is deducted from the borrowing cost eligible for capitalization if it is the investment income temporarily earned before the occurrence of capital expenditure that meets requirements. All other borrowing costs are recognized in net income in the period in which they are incurred.

s. Government Grants

Government grants are recognized where there is reasonable assurance that the grant will be received and all attached conditions will be complied with.

Government grants related to income are recognized in the profit and loss on a systematic basis during the period when it is intended to compensate to the expenses accounted by the Company.

If the government grants are used to compensate for the expenses or losses that have occurred, or are for the purpose of providing immediate financial support to the Company and there are no future related costs, they are recognized in the profit and loss during the period when it can be received.

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t. Employee Benefits

(1) Short-term employee benefits

Related liabilities for short-term employee benefits are measured by the non-discounted amount expected to be paid in exchange for employee services.

(2) Benefits after retirement

Pension funds that are verified as contribution for retirement plans are recognized as expenses according to the amount of funds contributed to pension in the employee's service period.

The defined cost of benefits under the defined benefit retirement plan (including service cost, net interest, and the remeasurement amount) are calculated based on the projected unit credit method. The service cost (including the service cost of the current period and the net interest of the net defined benefit liabilities or assets) are recognized as employee benefit expenses as they occur. The remeasurement amount (including actuarial gains and losses and the return on plan assets after deducting interest) is recognized in other comprehensive income and presented in retained earnings when it occurs. It shall not be reclassified to profit or loss in subsequent periods.

The net defined benefit liabilities (assets) are the shortfall (surplus) of the defined benefit retirement plan. The net defined benefit assets may not exceed the present value of refund from the plan or reductions in future contributions.

LIHAO INVESTMENT Co., Ltd., LIZAN INVESTMENT Co., Ltd., LEA JIE ENERGY Co., Ltd., LIBOLON ENTERPRISE Co., Ltd. and LI LING Film Co., Ltd. adopt the method of definite appropriation for retirement.

u. Treasury Shares

The treasury shares are recognized at the purchase cost when LIHAO INVESTMENT Co., Ltd. and LIZAN INVESTMENT Co., Ltd. reacquired these company stocks. When disposing of treasury shares, the price difference generated by the treasury stock exchange is recognized in shareholders' equity.

LEALEA ENTERPRISE Co., Ltd. acquires company stocks within the scope of the law. Before disposition or cancellation of the treasury shares, the costs of recovery or acquisition are listed as the deduction of the equity of shareholders.

When disposing of treasury shares, if the disposal price is higher than the carrying value, the difference is adjusted to capital reserve-treasury shares. If the disposal price is lower than the carrying value, the difference shall offset the capital reserve generated by the same type of treasury stock exchange. If it is insufficient, the retained earnings shall then be offset.

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v. Income Tax

Income tax expense is the aggregate amount current tax and deferred tax.

(1) Current income tax

The Company determines the current income (loss) in accordance with the laws and regulations established by each income tax reporting jurisdiction, and calculates the payable (recoverable) income tax based on it.

Income tax on unappropriated earnings in accordance with the provisions of the Income Tax Law of the Republic of China is subject to additional income tax, and the annual recognition is determined in accordance with the resolution of the shareholders meeting.

Adjustments to income tax payable in previous years are included in current income tax.

(2) Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the individual financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences, net operating loss carry forwards or machinery and equipment purchased, and tax credits for research and development expenses and other expenses recognized when they are utilized.

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

The carrying amount of deferred tax assets is reviewed on every balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the deferred tax asset to be recovered. The deferred tax assets which originally not recognized is also reviewed on every balance sheet date and recognized to the extent that it is probable that sufficient taxable profits will be available to allow all or part of the deferred tax asset to be recovered.

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

33 -

liabilities.

(3) Current and deferred tax for the year

Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity, respectively. If the current income tax or deferred income tax is generated from a business combination, the income tax impact is included in the accounting treatment of the business combination.

CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION AND UNCERTAINTY

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

When developing significant accounting estimates, the consolidated company takes into account the potential impact of reciprocal U.S. tariffs on cash flows, growth rates, discount rates, profitability, and other related significant estimates. Management will continue to review the estimates and underlying assumptions.

Critical Accounting Judgments Related to Associates

The Company holds 28.72% of the shares of Li Peng Enterprise Company Limited (hereinafter referred to as "Li Peng Enterprise") and is its largest shareholder. The assessment of various indicators identifies that the Company does not have the right to lead the relevant activities of Li Peng Enterprise, cannot appoint more than half of the members of its governance unit, and therefore has no control over Li Peng Enterprise. As such, the management of the Company concludes that the Company only has a significant influence on Li Peng Enterprise and therefore listed it as an associate of the Company.

CASH AND CASH EQUIVALENTS

	December 31, 2025	December 31, 2024
Cash on hand and working fund	$ 913	$ 2,052
Bank cheques and demand deposits	180,106	115,872
Foreign currency deposits	315,965	93,088
Short-term bill	18,984	139,336
Bank foreign currency time deposits with original maturity within 3 months	34,572	300,148
	$ 550,540	$ 650,496

As of December 31, 2024, bank time deposits with an original maturity date of more than three months were NT$98,355 thousand, accounted as other current financial assets.

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FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS

	December 31, 2025	December 31, 2024
Mandatory to measure at fair value through profit and loss—Current
Derivative financial assets (not under hedge accounting)
—Foreign exchange swap contracts	$ -	$ 7,838
Non-derivative financial assets
—Domestic publicly traded stocks	107,294	101,313
—Domestic open-end fund	772,482	156,755
	$ 879,776	$ 265,906
Mandatory to measure at fair value through profit and loss—Noncurrent
Non-derivative financial assets
—Foreign non-publicly traded common stocks	$ 373	$ 373

(a) At the end of the year, outstanding foreign exchange swap contracts not under hedge accounting were as follows:

December 31, 2024

Currency	Maturity Date	Contract Amount (In Thousands)	Exchange Rate
USD/NTD	2025.01.09~2025.02.26	USD25,000/NTD809,863	32.285~32.503

The Company entered into foreign exchange swap contracts to manage exposures to exchange rate fluctuations of foreign currency denominated assets and liabilities.

(b) The current financial assets and liabilities at fair value through profit and loss in 2025 and 2024 are assessed as NT$4,357 thousand in gains and NT$94,306 thousand in losses.

NOTES AND ACCOUNTS RECEIVABLE

	December 31, 2025	December 31, 2024
Notes receivable
At amortized cost
Total carrying amount	$ 30,385	$ 61,223
Less: Loss allowance	(219)	(505)
	$ 30,166	$ 60,718
Account receivable
At amortized cost
Total carrying amount	$ 382,421	$ 489,054
Less: Loss allowance	(5,209)	(4,913)
	$ 377,212	$ 484,141

Account Receivable

In principle, the payment term granted by the Company to customers is due 30 days to 120 days from the end of the month, and no interest is accrued on accounts receivable. Aside from recognizing impairment loss for credit-impaired accounts receivable, the Company recognizes loss allowance based on the expected credit loss ratio of customers by different risk levels with consideration of factors of historical loss ratios and customers' financial conditions, competitiveness and business outlook.

To lower the credit risk, the management of the Company appoints a dedicated team to handle decisions on credit limits, credit approval, and other monitoring procedures for ensuring that appropriate actions are taken to recover overdue receivables.

In addition, the Company would review the recoverable amount of each receivable on the balance sheet dates to ensure that impairment loss is recognized for unrecoverable receivables. As such, the management of the Company concludes that the credit risk of the Company is significantly reduced.

The Company assesses the allowances for losses for notes and accounts receivable (excluding related parties) on balance sheet date as follows:

December 31, 2025
	Within 30 days	31 to 60 days	61 to 90 days	91 to 120 days	Over 121 days	Total
Expected credit loss rate	0.32%~1%	0.5%~3%	0.5%~10%	0.5%~50%	0.5%~100%
Total carrying amount	$ 306,603	$ 59,708	$ 31,802	$ 10,677	$ 4,016	$ 412,806
Loss allowance (expected credit loss over the period)	(1,836)	(1,304)	(1,074)	(806)	(408)	(5,428)
Amortized cost	$ 304,767	$ 58,404	$ 30,728	$ 9,871	$ 3,608	$ 407,378
December 31, 2024
	Within 30 days	31 to 60 days	61 to 90 days	91 to 120 days	Over 121 days	Total
Expected credit loss rate	0.32%~1%	0.5%~3%	0.5%~10%	0.5%~50%	0.5%~100%
Total carrying amount	$ 418,344	$ 78,369	$ 39,122	$ 13,003	$ 1,439	$ 550,277
Loss allowance (expected credit loss over the period)	(3,637)	(1,047)	(454)	(273)	(7)	(5,418)
Amortized cost	$ 414,707	$ 77,322	$ 38,668	$ 12,730	$ 1,432	$ 544,859

Information regarding changes in the allowance for losses of notes and Accounts receivable is as follows:

	2025	2024
Balance, beginning of year	$ 5,418	$ 4,264
Add: Acquisition through business merger	-	197
Add: Provision for impairment loss of the current year	139	939
Foreign currency translation differences	(129)	18
Balance, end of year	$ 5,428	$ 5,418

Please refer to Notes 18 and 31 for the amount of accounts receivable that the Company has pledged for loan guarantee.

9. INVENTORIES

(a) The inventory details related to textile business, retail business, and wholesale business are as follow:

	December 31, 2025	December 31, 2024
Merchandise	$ 92,667	$ 171,046
Finished goods	870,770	1,173,768
Work in process	236,962	226,564
Raw materials	339,710	492,692
Inventory in transit	97,241	124,012
	$ 1,637,350	$ 2,188,082
	2025	2024
the costs of goods sold related to the inventories of textile business	$ 5,471,439	$ 7,036,887
the costs of goods sold related to the inventories of retail and wholesale businesses	1,025,249	609,656
the costs of goods sold related to nylon film businesses	406,172	387,502
Costs related to the electricity sales industry (Note)	29,181	-
	$ 6,932,041	$ 8,034,045

(Note) The controlling rights of LIBOLON Energy Co., Ltd. were acquired on January 2, 2025 and included in the consolidated financial statements. Please refer to Notes 12(d) and 26.

The costs of goods sold related to textile, retail, and wholesale, nylon film businesses in 2025 and 2024 including gains and loss on inventory value were NT$39,543 thousand and NT$7,587 thousand in gain, respectively.

The gain in the net realizable value of inventories in 2025 and 2024 was mainly due to the removal of inventories that were originally listed as depreciation losses and the recovery in market prices.

Please refer to Notes 18 and 31 for the amount that the Company sets as pledge for loan guarantee.

(b) The details of inventory – construction industry are as follows:

	December 31, 2025	December 31, 2024
Premises under construction	$ 1,189,395	$ 1,123,926
land construction	377,782	-
Parking spaces for sales	12,968	12,968
Less: Allowance for write-downs	( 12,968)	( 12,968)
	$ 1,567,177	$ 1,123,926

Parking spaces for sale are mechanical or flat parking spaces jointly held by Rich Development Company Limited, each accounting for one-half of the rights. As of December 31, 2025 and 2024, the allowance for reduction of inventory to market for the construction business were NT$12,968 thousand.

10. Financial assets measured at fair value through other comprehensive profits and losses

	December 31, 2025	December 31, 2024
Non-current
Foreign investment
Bond investment – TSMC Arizona Bonds	$ 16,571	$ 16,427

For information on credit risk management and impairment assessment related to debt instrument investments measured at fair value through other comprehensive profit or loss, please refer to Note 11.

11. Credit risk management of debt instrument investment

The debt instruments invested by the consolidated company are financial assets measured at fair value through other comprehensive profit or loss. :

	December 31, 2025	December 31, 2024
Total carrying amount	$ 18,633	$ 19,437
Allowance for losses	-	-
	18,633	19,437
fair value adjustment	(2,062)	(3,010)
	$ 16,571	$ 16,427

The policy adopted by the merged company is to only invest in debt instruments with a credit rating of investment grade or above (inclusive) and with low credit risk in the impairment assessment, and to evaluate the debt instrument investment from the original recognition based on market conditions and significant information about the debtor whether the credit risk increases significantly after listing.

The combined company considers the historical loss given default rate of each grade provided by external rating agencies, the current financial situation of the debtor and the outlook of the industry in which it operates to measure the expected credit losses of debt instrument investments.

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12. INVESTMENTS in SUBSIDIARIES

(a) The consolidated financial statements are mainly prepared by the entities as follows:

Investment Company Name	Subsidiary Name	Business Nature	Percentage of Equity Held
			December 31, 2025	December 31, 2024
LEALEA ENTERPRISE Co., Ltd.	LIHAO INVESTMENT Co., Ltd	Equity investment related business	53.38%	53.38%
LEALEA ENTERPRISE Co., Ltd.	LIZAN INVESTMENT Co., Ltd	Equity investment related business	53.17%	53.17%
LEALEA ENTERPRISE Co., Ltd.	LEA JIE ENERGY Co., Ltd.	Coal wholesaling and retailing business	70.00%	70.00%
LEALEA ENTERPRISE Co., Ltd.	LIBOLON ENTERPRISE Co., Ltd.	Sporting and recreation goods wholesaling and retailing business	100.00%	100.00%
LEALEA ENTERPRISE Co., Ltd.	PT. INDONESIA LIBOLON FIBER SYSTEM	Manufacturing and sales of weaving, dyeing and finishing, processing of artificial fiber fabrics.	70.00%	70.00%
LEA JIE ENERGY Co., Ltd.	VIRTUE ELITE Ltd.	Coal wholesaling and retailing business	99.61%	99.61%
LEALEA ENTERPRISE Co., Ltd.	LI LING FILM Co. Ltd.	Nylon film manufacturing and trading business	69.82%	60.67%
LIHAO INVESTMENT Co., Ltd	LI LING FILM Co. Ltd.	Nylon film manufacturing and trading business	1.58%	2.07%
LIZAN INVESTMENT Co., Ltd	LI LING FILM Co. Ltd.	Nylon film manufacturing and trading business	1.75%	2.28%
LEALEA ENTERPRISE Co., Ltd.	LIBOLON Energy Co., Ltd.	Power generation	60.00%	-

(b) Among the non-material subsidiaries included in the consolidated financial statements, the 2025 and 2024 financial statement of PT. INDONESIA LIBOLON FIBER SYSTEM is audited by the other accountants instead of the certified accountant of the Company.

(c) The Merger Company originally held 14.61% of the equity of Li Ling Film Co., Ltd., and after participating in its cash capital increase on June 1, 2024, the Merger Company's shareholding ratio increased to 65.02% and acquired control. For related information, please refer to Note 25. The company conducted a cash capital increase on August 31, 2025, the merged company did not subscribe to the capital increase in accordance with its shareholding ratio. After the capital increase, the shareholding ratio of the merged company increased to 73.15%.

(d) On January 2, 2025, the merged company participated in the cash capital increase of LIBOLON Energy Co., Ltd. and gained control, holding a 60% stake. For related information, please refer to Note 26.

13. INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD

Investment in Associates

	December 31, 2025	December 31, 2024
Significant associate
LI PENG ENTERPRISE Co., Ltd.	$ 2,316,923	$ 2,540,604
Individually insignificant associates	2,191,577	2,492,151
	$ 4,508,500	$ 5,032,755

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(a) Significant associate

	Percentage of Equity and Voting Rights Held
Investee Company Name	December 31, 2025	December 31, 2024
LI PENG ENTERPRISE Co., Ltd.	28.72%	26.91%

Please refer to "Information on Investees, Locations, etc." in Table 7 for information on the nature of business, its area of operations, and country of company registry of the above associates.

The information of the quoted price in active markets of associates, the level 1 fair value measurement, is as follows:

Investee Company Name	December 31, 2025	December 31, 2024
LI PENG ENTERPRISE Co., Ltd.	$ 1,411,558	$ 1,743,813
RICH DEVELOPMENT Co., Ltd.	$ 421,821	$ 517,398

The Company adopts the equity method to measure all the above-mentioned associates.

The following summary financial information is prepared on the basis of each associate's consolidated financial statements in accordance with IFRSs, and has reflected the adjustments made when the equity method is adopted.

LI PENG ENTERPRISE Co., Ltd.

	December 31, 2025	December 31, 2024
Current assets	$ 5,703,342	$ 7,400,404
Noncurrent assets	9,409,990	10,284,479
Current liabilities	( 5,367,152 )	( 6,482,767 )
Noncurrent liabilities	( 1,946,807 )	( 2,025,194 )
Equity	7,799,373	9,176,922
Add: Treasury Stock Adjustment	287,142	287,142
	$ 8,086,515	$ 9,464,064
Shareholding ratio of the Group Company	28.72%	26.91%
Equity attributable to the Group Company	$ 2,323,062	$ 2,547,398
Unrealized profits and losses of upstream transactions	( 6,139 )	( 6,794 )
Investment carrying amount	$ 2,316,923	$ 2,540,604
	2025	2024
Operating revenue	$ 8,374,675	$ 10,669,091
Net income (loss) of this period	($ 891,970 )	$ 56,103
Other comprehensive income and loss	( 478,639 )	( 194,379 )
Total comprehensive income and loss	($ 1,370,609 )	($ 138,276 )

(b) Summary information of individually insignificant associates

	2025	2024
Share of the Company
Continuing operation net income of this period	$ 93,497	$ 89,985
Other comprehensive income and loss	(211,754)	(105,773)
Total comprehensive income and loss	($ 118,257)	($ 15,788)

The Company adopts the equity method to measure all the above-mentioned associates.

In 2025 and 2024, the recognition of share for both the profits and losses of the Company's investments accounted for using the equity method and other comprehensive profits and losses is based on the financial statements of each associate audited by accountants during the same period. Among them, the financial statements of Rich Development Company Limited, FU LI Express Co., Ltd. and REMONDIS LEALEA Enterprise Co., Ltd. are audited by the other accountants, instead of the Company's certified accountant.

Please refer to Note 18 and 31 for the investment amount related to associates that the Company set pledge as loan guarantee. However, the quota was not used on December 31, 2025 and 2024.

PROPERTY, PLANT AND EQUIPMENT

	December 31, 2025	December 31, 2024
Owned land	$ 2,388,485	$ 2,455,725
Buildings	1,668,622	1,932,752
Machinery Equipment	2,790,322	3,026,535
Transportation Equipment	15,816	20,469
Other Equipment	334,294	382,382
Leased Assets	700,526	705,542
Equipment awaiting Examination	4,133	30,269
	$ 7,902,198	$ 8,553,674
	Owned land	Buildings
---	---	---
Cost
Balance at January 1, 2025	$ 2,458,904	$ 3,799,474
Additions	-	-
Disposals	-	(2,339)
Net exchange differences	(64,499)	(66,422)
Transfers	(2,741)	27,225
Balance at December 31, 2025	$ 2,591,664	$ 3,757,958
Accumulated depreciation and impairment
Balance at January 1, 2025	$ 3,179	$ 1,866,722
Disposals	-	(180)
Depreciation	-	109,772
Impairment loss	-	118,419
Net exchange differences	-	(12,654)
Transfers	-	7,237
Balance at December 31, 2025	$ 3,179	$ 2,089,316
Carrying amounts at December 31, 2025	$ 2,388,485	$ 1,668,622

(Continued from next page)

(Continued from previous page)

	Owned land	Buildings	Machinery Equipment	Transportation Equipment	Other Equipment	Leased Assets	Equipment awaiting Examination	Total
Cost
Balance at January 1, 2024	$ 2,326,060	$ 2,692,051	$ 10,637,117	$ 120,074	$ 1,806,123	$ 989,900	$ 628,477	$ 19,199,802
Additions	-	58,483	299,335	2,256	161,746	-	379,305	901,125
Disposals	-	( 5,415 )	( 29,968 )	( 5,343 )	( 6,595 )	( 1,547 )	-	( 48,868 )
Acquisition through business merger	-	489,646	1,154,898	4,157	105,937	-	-	1,754,638
Net exchange differences	15,303	5,860	21,942	212	3,745	-	11,047	58,109
Transfers	117,541	558,849	655,440	10,296	72,561	( 129,598 )	( 988,560 )	276,529
Balance at December 31, 2024	$ 2,458,904	$ 3,799,474	$ 12,718,764	$ 131,652	$ 2,143,517	$ 858,755	$ 30,269	$ 22,141,335
Accumulated depreciation and impairment
Balance at January 1, 2024	$ 3,179	$ 1,689,426	$ 8,681,916	$ 99,934	$ 1,655,333	$ 153,908	$ -	$ 12,283,696
Disposals	-	( 5,415 )	( 24,156 )	( 5,176 )	( 6,506 )	( 1,547 )	-	( 42,800 )
Acquisition through business merger	-	84,650	586,254	2,970	53,496	-	-	727,370
Depreciation	-	95,602	459,601	5,670	56,136	8,220	-	605,229
Net exchange differences	-	2,459	8,829	202	2,676	-	-	14,166
Transfers	-	-	( 215 )	7,583	-	( 7,368 )	-	-
Balance at December 31, 2024	$ 3,179	$ 1,866,722	$ 9,692,229	$ 111,183	$ 1,761,135	$ 153,213	$ -	$ 13,587,661
Carrying amounts at December 31, 2024	$ 2,455,725	$ 1,932,752	$ 3,026,535	$ 20,469	$ 382,382	$ 705,542	$ 30,269	$ 8,553,674

Due to the impact of global overcapacity on the polyester solid state PET chip and polyester chip market, leading to low-price competition, domestic customer demand for polyester products has decreased, resulting in oversupply and an imbalance between production and sales. At the same time, domestic production costs are constantly rising, and foreign tariff barriers have made the market outlook uncertain. In order to optimize human resources and equipment utilization and reduce company losses, the Board of Directors resolved on October 1, 2025 to cease production of the direct spinning equipment at the chemical fiber plant. In addition, the company expects that the future cash inflows from the plant and machinery used to produce this product will decrease, resulting in the recoverable amount being less than the book value. Therefore, an impairment loss of NT$194,131 thousand was recognized in 2025.

(a) The property, plant, and equipment of the Company are depreciated on a straight-line basis based on the following durability years:

Buildings
Office Building and Plant	25-40 years
Warehouse	10-25 years
Hydroelectric Engineering	10-20 years
Maintenance and Repair Engineering	3-10 years
Machinery Equipment
Machinery Engineering	5-15 years
Electrical Engineering	5-9 years
Maintenance and Repair Engineering	2-5 years
Transportation Equipment
Lifts and Elevators	10-15 years
Fork Lift and Pallet Truck	5-6 years
Other Equipment
Power Equipment	9-15 years
Engineering Facilities	5-15 years
Other Facilities	5-10 years
Maintenance and Repair Engineering	2-5 years

(b) Please refer to Note 18 and 31 for the amount related to property, plant, and equipment that the Company set pledge as loan guarantee.

(c) LEALEA ENTERPRISE signed a contract with its related party, LI LING Film Co., Ltd., in March 2023 to purchase a building located in Fangyuan Township, Changhua County. After acquisition, the building will be leased to the related party, LI LING Film Co., Ltd., the lease period is from June 2023 to May 2058, totaling 35 years. The transaction was identified in accordance with the requirements of IFRS15 and the nature of the transaction should be financing. Therefore, the accounting treatment was handled in the form of financing.

15. LEASE ARRANGEMENTS

(a) Right-of-use assets

	December 31, 2025	December 31, 2024
Carrying amounts
Lands	$ 49,160	$ 67
Buildings	31,736	12,342
	$ 80,896	$ 12,409
	2025	2024
Additions to right-of-use assets	$ 78,542	$ 10,854
Depreciation of right-of-use assets
Lands	$ 937	$ 200
Buildings	7,413	17,076
	$ 8,350	$ 17,276

Except for the recognition of depreciation expense, there were no material subleases or impairments of the company's right-of-use assets as in 2025 and 2024.

(b) Lease liabilities

	December 31, 2025	December 31, 2024
Carrying amounts
Current portion	$ 6,689	$ 5,714
Noncurrent portion	$ 74,494	$ 6,690

Ranges of discount rates for lease liabilities are as follows:

	December 31, 2025	December 31, 2024
Lands	2.1556%~	1.4749%~2.1556%
	2.19721%
Buildings	1.3063%~8.78%	1.3063%~8.75%

	2025	2024
Expenses relating to short-term leases	$ 29,069	$ 11,180
Total cash (outflow) for leases	($ 38,267)	($ 29,044)

Investment property

	Lands	Buildings	Total
Cost
Balance at January 1, 2025	$ 282,843	$ 217,656	$ 500,499
Net exchange differences	( 443)	( 5,076)	( 5,519)
Balance at December 31, 2025	$ 282,400	$ 212,580	$ 494,980
Accumulated depreciation and impairment
Balance at January 1, 2025	$ -	$ 158,147	$ 158,147
Depreciation	-	5,306	5,306
Net exchange differences	-	( 1,800)	( 1,800)
Balance at December 31, 2025	$ -	$ 161,653	$ 161,653
Carrying amounts at December 31, 2025	$ 282,400	$ 50,927	$ 333,327
Cost
Balance at January 1, 2024	$ 277,077	$ 216,668	$ 493,745
Disposals	-	( 3,102)	( 3,102)
Net exchange differences	4	1,144	1,148
Transfers	5,762	2,946	8,708
Balance at December 31, 2024	$ 282,843	$ 217,656	$ 500,499
Accumulated depreciation and impairment
Balance at January 1, 2024	$ -	$ 155,604	$ 155,604
Disposals	-	( 3,102)	( 3,102)
Depreciation	-	5,276	5,276
Net exchange differences	-	369	369
Balance at December 31, 2024	$ -	$ 158,147	$ 158,147
Carrying amounts at December 31, 2024	$ 282,843	$ 59,509	$ 342,352

(a) The investment property is depreciated on a straight-line basis based on the following durability years:

Main buildings

2~35 years

(b) The investment property of the company has not been evaluated by independent evaluators, and is only evaluated by the management of the company with reference to the market conditions of nearby real estate transaction prices. The appraisal result shows that the property value of the investment property is NT$1,412,799 thousand and NT$1,451,930 thousand as of December 31, 2025 and 2024.

(c) Please refer to Notes 18 and 31 for the amount of investment real estate pledged by the merged company as loan security.

17. Goodwill

	December 31, 2025	December 31, 2024
Balance, beginning of year	$ 196,542	$ 63,337
Acquisition through business merger	143	133,205
Impairment losses recognized in this period	( 133,348)	-
Balance, end of year	$ 63,337	$ 196,542

The consolidating company acquired LI LING Film Co., Ltd. in June 2024, generating goodwill of NT$133,205 thousand. As actual operating revenue growth was lower than expected, the recoverable amount of LI LING Film Co., Ltd. was assessed to be less than the book value. Therefore, a goodwill impairment of NT$133,205 thousand was recognized in 2025.

18. BORROWINGS

(a) Short-term loans

	December 31, 2025	December 31, 2024
Secured bank loans
Bank loans	$ 2,900,000	$ 2,300,000
Unsecured bank loans
Credit limit loans	1,171,000	1,391,000
	$ 4,071,000	$ 3,691,000

The interest rates of bank revolving loans were 1.5624% - 2.46% and 1.5606% - 2.321% as of December 31, 2025 and 2024, respectively.

The short-term loans on December 31, 2025 and 2024 were collateral for property, account receivable, inventory, plant and equipment. Please refer to Notes 8, 9, 14, 16 and 31.

(b) Short-term bills payable—Commercial paper

Guarantee Agency	December 31, 2025
	Interest Rate	Carrying Amount
Unsecured
Ta Ching Bills Finance Corporatio.
China Bills Finance Corporation and Taiwan Cooperative Financial Holding Co., Ltd.,	1.53%~1.89%	$ 184,000

46 -

Guarantee Agency	December 31, 2024
	Interest Rate	Carrying Amount
Unsecured
Ta Ching Bills Finance Corporation.
China Bills Finance Corporation and Taiwan Cooperative Financial Holding Co., Ltd.,	1.53%~1.88%	$ 200,000
(c) Long-term loans
	Interest Rate	December 31, 2025	December 31, 2024
Long-term bank loans
BANK OF TAIWAN
The total amount of secured loans dated as April 29, 2022 to February 24, 2029 is NT$700 million. The loan will be allocated once or in installments within two years after the contract, and the interest will be paid monthly. The repayment of the first installment started on August 24, 2024. After that, every 6 months is one installment, and will be amortized evenly in 10 installments.	2.1142%~2.2199%	$ 490,000	$ 630,000
EXPORT-IMPORT BANK OF THE REPUBLIC OF CHINA
The total amount of credit loans dated as March 8, 2021 to March 8, 2026 is NT$400 million. Five years from disbursement date, the interest must be made on the twenty-first day of every 3 months. The repayment of the first installment started on September 8, 2022. After that, every 6 months is one installment, and the principal will be amortized evenly in 8 installments.	2.3064%~2.3362%	50,000	150,000
EXPORT-IMPORT BANK OF THE REPUBLIC OF CHINA
The total amount of credit loans dated as June 16, 2023 to June 16, 2028 is NT$300 million. Five years from disbursement date, the interest must be made on the twenty-first day of every 3 months. The repayment of the first installment started on December 16, 2024. After that, every 6 months is one installment, and the principal will be amortized evenly in 8 installments.	2.3339%~2.3369%	187,500	262,500
EXPORT-IMPORT BANK OF THE REPUBLIC OF CHINA
The total amount of credit loans dated as March 17, 2025 to March 17, 2028 is NT$150 million. Three years from disbursement date, the interest must be made on the twenty-first day of each months. The repayment of the first installment started on September 17, 2026. After that, every 6 months is one installment, and the principal will be amortized evenly in 4 installments.	0.9852%~1.9854%	150,000	-
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	Interest Rate	December 31, 2025	December 31, 2024
KGI BANK Co., Ltd.
The total amount of credit loans dated as January 15, 2025 to January 15, 2030 is NT$300 million. Five years from disbursement date, the interest must be made on the 15th of each months. The repayment of the first installment started on July 15, 2026. After that, every 3 months is one installment, and the principal will be amortized evenly in 15 installments.	1.92%	$ 104,000	$ -
KGI BANK Co., Ltd.
The total amount of credit loans for dated as December 24, 2025 to November 25, 2027 is NT$600 million, with interest paid per month. Each loan shall be repaid at the expiration date and may be used in revolving.	2.2%	600,000	-
KGI BANK Co., Ltd.
The total amount of credit loans for dated as September 20, 2024 to September 20, 2026 is NT$600 million, with interest paid per month. The extension period of each loan shall not exceed 4 months. Each loan shall be repaid at the expiration date and may be used in revolving.	2.19556%~2.2%	-	600,000
Chang Hwa Bank
The total amount of secured loans dated as December 24, 2025 to February 24, 2028 is NT$500 million. Interest is calculated every 3 months and the loan can be revolved until March 31, 2026. The principal will be repaid within 3 years from March 31, 2026.	2.378%	500,000	-
Mega Bank
The total amount of credit loans for dated as November 29, 2021 to November 29, 2026 is NT$2.6 million, with interest paid per month. It can be used cyclically, and the grace period will be 12 months from the date of first use. After the grace period, one month will be considered as one period, and the principal will be repaid evenly in 48 periods.	2.475%	5,687	12,275
		2,087,187	1,654,775
Less: Portion of current liabilities due within one year		(322,054)	(321,588)
		$ 1,765,133	$ 1,333,187

For collateral for long-term loans, please refer to Notes 14, 16 and 31.

48 -

19. RETIREMENT BENEFIT PLANS

(a) Defined contribution plans

The plan under the R.O.C. Labor Pension Act (the “Act”) managed by the government is deemed a defined contribution plan. Pursuant to the Act, LEALEA ENTERPRISE and its domestic subsidiaries have made monthly contributions equal to 6% of each employee’s monthly salary to employees’ pension accounts.

Foreign subsidiaries allocate pension funds to relevant pension management projects in accordance with local laws and regulations.

(b) Defined benefit plans

LEALEA ENTERPRISE has defined benefit plans under the R.O.C. Labor Standards Law that provide benefits based on an employee’s length of service and average monthly salary for the six-month period prior to retirement. The Company contributes an amount equal to 2% of salaries paid each month to their respective pension funds (the Funds), which are administered by the Labor Pension Fund Supervisory Committee (the Committee) and deposited in the Committee’s name in the Bank of Taiwan. Before the end of each year, the Company assesses the balance in the Funds. If the amount of the balance in the Funds is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Company is required to fund the difference in one appropriation that should be made before the end of March of the next year. The Funds are operated and managed by Bureau of Labor Funds (MOL); as such, the Company does not have any right to intervene in the investments of the Funds.

Amounts recognized in respect of these defined benefit plans, included in the consolidated balance sheet, were as follows:

	December 31, 2025	December 31, 2024
Present value of defined benefit obligation	$ 391,976	$ 405,512
Fair value of plan assets	( 148,895)	( 147,705)
Net defined benefit liability	$ 243,081	$ 257,807

Movements in the present value of the net defined benefit liabilities or assets were as follows:

	Present Value of Defined Benefit Obligation	Fair Value of Plan Assets	Net Defined Benefit Liability (Asset)
Balance as of January 1, 2024	$ 435,188	($ 151,568)	$ 283,620
Service cost
Past service cost	2,540	-	2,540
Current service cost	9,732	-	9,732
Interest expense (income)	9,527	( 1,954)	7,573
Recognized in profit and loss	21,799	( 1,954)	19,845

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	Present Value of Defined Benefit Obligation	Fair Value of Plan Assets	Net Defined Benefit Liability (Asset)
Remeasurement
Return on plan assets (excluding amounts included in net interest expense)	-	( 13,071 )	( 13,071 )
Actuarial loss (gain) arising from
—Changes in demographic assumptions	-	-	-
—Changes in financial assumptions	( 9,082 )	-	( 9,082 )
—Experience adjustments	( 4,481 )	-	( 4,481 )
Components of defined benefit costs recognized in other comprehensive income	( 13,563 )	( 13,071 )	( 26,634 )
Contributions from employer	-	( 12,182 )	( 12,182 )
Benefits paid	($ 37,679)	$ 31,070	($ 6,609)
Exchange difference	( 233 )	-	( 233 )
Balance as of December 31, 2024	$ 405,512	($ 147,705)	$ 257,807
Balance as of January 1, 2025	$ 405,512	($ 147,705)	$ 257,807
Service cost
Past service cost	3,448	-	3,448
Current service cost	9,398	-	9,398
Interest expense (income)	9,692	( 2,285 )	7,407
Recognized in profit and loss	22,538	( 2,285 )	20,253
Remeasurement
Return on plan assets (excluding amounts included in net interest expense)	-	( 11,122 )	( 11,122 )
Actuarial loss (gain) arising from
—Changes in demographic assumptions	-	-	-
—Changes in financial assumptions	6,446	-	6,446
—Experience adjustments	2,938	-	2,938
Components of defined benefit costs recognized in other comprehensive income	9,384	( 11,122 )	( 1,738 )
Contributions from employer	-	( 24,101 )	( 24,101 )
Benefits paid	( 39,235 )	36,318	( 2,917 )
Exchange difference	( 6,223 )	-	( 6,223 )
Balance as of December 31, 2025	$ 391,976	($ 148,895)	$ 243,081

The amount of the defined benefit plans was recognized in profit or loss, according to the function categories summarized as follows:

	2025	2024
Cost of revenue	$ 17,910	$ 16,398
Marketing expenses	716	1,950
General and administrative expenses	1,302	1,307
Research and development expenses	325	190
	$ 20,253	$ 19,845

Through the defined benefit plans under the R.O.C. Labor Standards Law, the Company is exposed to the following risks:

(1) Investment risk: The pension funds are invested in domestic or foreign equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of Bureau of Labor Funds (MOL). However, the allocable amount of the plan assets shall be calculated no less than the average interest rate on a two-year time deposit published by the local banks.

(2) Interest risk: A decrease in the government bond interest rate will increase the present value of the defined benefit obligation, but the return on debt investments of plan assets will increase accordingly, and both of them have the partial offset effect on the influence of the net defined benefit liabilities.

(3) Salary risk: The present value of the defined benefit obligation is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the present value of the defined benefit obligation.

The actuarial valuations of the present value of the defined benefit obligation were carried out by qualified actuaries. The principal assumptions of the actuarial valuation were as follows:

	December 31, 2025	December 31, 2024
Discount rate	1.375%~6.75%	1.5%~7.14%
Long-term average salary increase rate	2.5%~10.00%	2.5%~10.00%

If reasonably possible changes occur in major actuarial assumptions while all other assumptions remain unchanged, the present value of defined benefit obligations will increase (decrease) as follows:

	December 31, 2025	December 31, 2024
Discount rate
Increase by 0.25%	($ 26,558)	($ 26,114)
Decrease by 0.25%	$ 29,601	$ 29,055
Expected average salary increase rate
Increase by 0.25%	$ 29,329	$ 28,782
Decrease by 0.25%	($ 26,461)	($ 25,992)

As actuarial assumptions may be related to one another, the likelihood of fluctuation in a single assumption is not high. Therefore, the aforementioned sensitivity analysis may not reflect the actual fluctuations of the present value of defined benefit obligations.

	December 31, 2025	December 31, 2024
Expected appropriation amount within 1 year	$ 28,343	$ 25,774
Average maturity period of defined benefit obligations	8.6~18.1 years	9~18.51 years

51 -

20. EQUITY

(a) Capital

Common stocks

	December 31, 2025	December 31, 2024
Authorized shares (in thousands of shares)	1,200,000	1,200,000
Authorized capital	$12,000,000	$12,000,000
Number of shares issued and fully paid (in thousands of shares)	995,595	995,595
Issued capital	$9,955,950	$9,955,950

A holder of issued common shares with par value of NT$10 per share is entitled to vote and to receive dividends.

(b) Capital surplus

	December 31, 2025	December 31, 2024
Treasury share transactions	$ 26,122	$ 26,122
Changes in capital surplus of associates accounted for using equity method	88,619	84,133
Acquisition from the difference between the equity price and carrying amount of the subsidiaries)	4,518	4,518
	$ 119,259	$ 114,773

The capital surplus generated from the excess of the issuance price over the par value of capital stock (including the stock issued for new capital, treasury stock transactions, and acquisition or disposition from the difference between the equity price and carrying amount of the subsidiaries) may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends or stock dividends up to a certain percentage of the Company's paid-in capital. However, the capital replenishment is restricted to a certain ratio of paid-in capital each year.

The capital surplus from the investments accounted for using equity method may not be used for other purposes, except for a deficit offset.

(c) Retained earnings and dividend policy

According to the regulations on earnings distribution in the Articles of Incorporation of the Company, in the event of surplus earnings after closing of annual accounts, losses incurred in preceding years shall be compensated first. Then, 10% of the remainder surplus shall be set aside as legal capital reserve in accordance with the law. However, in the event that the accumulated legal capital reserve is equivalent to or exceeds the Company's total paid-in capital, such allocation may be exempted. The remainder may be set aside or reversed as special surplus reserve in accordance with laws and regulations. If there are remaining earnings, the Board of Directors shall draft an earnings distribution proposal regarding the remainder of the earnings as well as accumulated undistributed surplus at the beginning of the year, at which the 0% to 100%

distributable surplus may be set aside, for approval at the shareholders' meeting. Among them, the cash dividend shall not be less than 5% of the total dividend. However, if the cash dividend per share does not reach NT$ 0.1, distribution of earnings may be made by way of stock dividend. Due to the volatile industrial environment and the development of diversification, the Board of Directors may have distribution of earnings to be made by way of stock dividend totally after considering the current operating conditions and the capital budget. Please refer to Note 22 (7) Employee remuneration and remuneration for Directors and Supervisors for the distribution policy for remuneration for employees, Directors, and Supervisors in the Articles of Incorporation of the Company.

LEALEA ENTERPRISE held a regular shareholders' meeting on June 21, 2024, and passed a resolution to approve the loss allowance proposal for 2023.

LEALEA ENTERPRISE's shareholders' general meetings on June 13, 2025, and the resolutions passed the 2024 earnings distribution proposals as follows:

	Appropriation of Earnings	Dividends Per Share (NT$)
	2024	2024
Legal reserve	$ 18,468	$ -
Legal special reserve	54,980	-

The loss allowance proposal for 2025 is still pending the resolution of the general shareholders meeting scheduled to be held on June 9, 2026.

The legal capital reserve is supplemented until the balance equals the Company's total paid-in capital. The legal capital reserve may be used to make up for losses. When the Company has no loss, the portion of the legal capital reserve that exceeds 25% of the total paid-in capital may be appropriated in cash in addition to being transferred to capital stock.

(d) Other equity interest

(1) Exchange differences on translation of foreign financial statements

	2025	2024
Balance, beginning of year	($ 109,415)	($ 138,456)
Current period
Exchange differences on translation of foreign operations	( 109,280)	29,041
Other comprehensive income	( 109,280)	29,041
Balance, end of year	($ 218,695)	($ 109,415)

(2) Unrealized gains (losses) from financial assets at fair value through Other comprehensive gains and losses

	2025	2024
Balance, beginning of year	$ 54,435	$ 216,468
Current period
Share of Profit (Loss) of Associates and Joint Ventures Accounted for Using Equity Method	(331,074)	(157,950)
Other Comprehensive Income Transfer of cumulative gain/loss on disposal of equity instruments to retained earnings	(331,074)	(157,950)
Balance, end of year	($ 263,134)	$ 54,435
(e) Non-controlling interests
	2025	2024
Balance, beginning of year	$ 1,364,810	$ 1,303,899
Shares attributable to non-controlling interests
Net income (loss) in this period	(118,385)	(26,301)
Adjustments to share changes in capital surplus of associates, accounted for using equity method	(1,944)	(411)
Share of other comprehensive profits (loss) of associates, accounted for using equity method	(63,300)	2,870
Acquisition of cash dividends from the subsidiaries	(8,910)	(1,980)
Recognition of changes in equity from subsidiary's cash capital increase not in proportion to shareholding	39,512	-
Cash Capital Increase of Subsidiary	184	-
Increased non-controlling interest in subsidiaries	42,353	86,733
Balance, end of year	$ 1,254,320	$ 1,364,810

(f) Treasury stocks

The changes in the number of treasury shares of the Company in 2025 and 2024 are illustrated below:

2025
Withdrawal Reason	Number of Shares, Beginning of Year	Increase in Current Period	Decrease in Current Period	Number of Shares, End of Year
Shares of parent company held by subsidiaries	11,204,989	-	-	11,204,989
2024
Withdrawal Reason	Number of Shares, Beginning of Year	Increase in Current Period	Decrease in Current Period	Number of Shares, End of Year
Shares of parent company held by subsidiaries	11,204,989	-	-	11,204,989

The purpose of holding the Parent Company's shares by the subsidiaries is to protect shareholders' rights and interests. The relevant information is illustrated below:

Name of Subsidiary	Number of Shares Held	Transfer Amount of Treasury Stock
December 31, 2025
LIHAO INVESTMENT Co., Ltd.	4,859,559	$ 11,842
LIZAN INVESTMENT Co., Ltd.	6,345,430	16,628
		$ 28,470
December 31, 2024
LIHAO INVESTMENT Co., Ltd.	4,859,559	$ 11,842
LIZAN INVESTMENT Co., Ltd.	6,345,430	16,628
		$ 28,470

LEALEA ENTERPRISE accounted NT$28,470 thousand in treasury stocks on December 31, 2025 and 2024, which is the amount of parent company shares held by LIHAO INVESTMENT Company Limited and LIZAN INVESTMENT Company Limited and transferred as treasury stocks. The transfer amount has been adjusted in accordance with the comprehensive shareholding ratio of LEALEA ENTERPRISE in its subsidiaries. The market price of the Company on December 31, 2025 was NT$6.02 per share.

The shares held by LIHAO INVESTMENT and LIZAN INVESTMENT are treated as treasury stocks, except that they are not allowed to participate in the cash capital increase of the Company and have no voting rights, and the rest of rights are the same as general shareholders.

21. OPERATING REVENUE

	2025	2024
Polyester draw textured yarn	$3,261,792	$3,678,372
Polyester fully oriented yarn and Polyester chip	331,779	651,645
Polyester solid state PET chip	814,527	1,714,006
Filament fabric	1,168,067	1,106,117
Income from coal trading	1,067,955	675,139
Nylon film	305,794	305,592
Other	163,140	139,006
	$7,113,054	$8,269,877

55 -

22. INCOME FROM CONTINUING OPERATIONS

(a) Interest income

	2025	2024
Bank deposits	$ 11,485	$ 26,230
Interest on borrowings of related parties	21,402	15,441
Long-term interest income receivable	-	3,119
Interest on debt instruments	718	754
Interest income—Others	4,157	8,498
	$ 37,762	$ 54,042

(b) Other income

	2025	2024
Rental income	$ 86,670	$ 96,850
Dividend income	4,298	2,942
Others	98,581	86,753
	$ 189,549	$ 186,545

(c) Other gains and losses

	2025	2024
Gains (losses) on disposal of property, plant and equipment	$ 2,403	($ 3,201)
Foreign exchange gains (losses), net	(191,115)	321,000
Gains on financial assets and financial liabilities at fair value through profit or loss	4,357	94,306
Profit from lease modification	32	-
Gains on disposal of investments	9,509	4,003
Impairment loss on property, plant and equipment (Note 14)	(194,131)	-
Goodwill Impairment Loss (Note 17)	(133,348)	-
Other losses	(84,322)	(58,478)
	($ 586,615)	$ 357,630

(d) Finance costs

	2025	2024
Interest on bank loans	$ 114,347	$ 95,191
Interest on borrowings from related parties	32,727	24,236
Finance expenses	2,950	1,677
Interests on lease liabilities	1,346	323
Others	3,986	1,583
Less: The amount included in the cost of assets according with the requirements	( 32,596)	( 29,416)
	$ 122,760	$ 93,594

Capitalization of interest related information is as follows:

	2025	2024
Capitalized interest amount	$ 32,596	$ 29,416
Capitalized interest rate	2.03908%~2.544063%	2.0563%~3.1%

(e) Depreciation and Amortization

	2025	2024
Property, plant and equipment	$ 627,957	$ 605,229
Right-of-use assets	8,350	17,276
Investment property	5,306	5,276
Amortization expense (Including the amortization for other intangible assets and prepayments)	57,571	55,008
Total	$ 699,184	$ 682,789
Depreciation expenses summarized by function
Costs of Revenue	$ 585,742	$ 563,267
Operating expenses	33,804	39,739
Non-operating expenses	22,067	24,775
	$ 641,613	$ 627,781
Amortization expenses summarized by the function
Costs of Revenue	$ 53,004	$ 48,288
Operating expenses	3,043	4,645
Non-operating expenses	1,524	2,075
	$ 57,571	$ 55,008

(f) Employee benefits expenses

	2025
	Operating cost	Operating expenses	Total
Salary and Wages	$ 594,541	$ 139,787	$ 734,328
Labor and health insurance expenses	69,258	11,089	80,347
Pension expenses
Defined contribution plan	16,863	3,822	20,685
Defined benefit plan (Note 19)	17,910	2,343	20,253
	34,773	6,165	40,938
Compensation to directors	-	4,791	4,791
Other employee benefits	44,826	7,459	52,285
Total employee benefit expenses	$ 743,398	$ 169,291	$ 912,689
	2024
---	---	---	---
	Operating cost	Operating expenses	Total
Salary and Wages	$ 587,260	$ 140,966	$ 728,226
Labor and health insurance expenses	64,113	10,726	74,839
Pension expenses
Defined contribution plan	16,194	5,287	21,481
Defined benefit plan (Note 19)	16,398	3,447	19,845
	32,592	8,734	41,326
Compensation to directors	-	9,116	9,116
Other employee benefits	44,783	7,217	52,000
Total employee benefit expenses	$ 728,748	$ 176,759	$ 905,507

(g) Profit sharing bonus to employees and Compensation to directors

After Amendment

In accordance with the August 2024 amendments to the Securities and Exchange Act, LEALEA Enterprise Co., Ltd. resolved to amend its Articles of Incorporation at the shareholders' meeting in June 2025. Pursuant to the amended Articles, if there is pre-tax profit for the current year before deducting employee and director remuneration, the Company shall allocate at least 1% as employee remuneration, no more than 5% as director remuneration, and at least 1% for base-level employee salary adjustments or remuneration. However, if the Company has accumulated losses, the profit shall first be used to offset the losses before allocating the remunerations and salary adjustments mentioned above.

Before Amendment

According to the Company's Articles of Incorporation, the Company accrued profit sharing bonus to employees and compensation to directors based on net income before income tax of current year and shall appropriates profit sharing bonus to employees and

compensation to directors of the Company no less than 2% and no more than 5% of annual profits before tax during the period, respectively.

In 2025, there was a loss without estimating employee remuneration and director remuneration. The Company's profit sharing bonus to employees and compensation to directors for 2024 had been approved by the Board of Directors on March 14, 2025, as illustrated below:

Estimated ratio
| | 2024 |
| --- | --- |
| Profit sharing bonus to employees | 2% |
| Compensation to directors | 2% |

Amount
| | 2024 |
| --- | --- |
| Profit sharing bonus to employees | $ 4,042 |
| Compensation to directors | 4,042 |

If there is a change in the proposed amounts after the annual consolidated financial statements are authorized for issue, the differences are recorded as a change in accounting estimate.

The information about the appropriations of the Company's profit sharing bonus to employees and compensation to directors approved by the Board of Directors is available at the Market Observation Post System website of Taiwan Stock Exchange.

23. INCOME TAX OF CONTINUING OPERATION

(a) Income tax expense recognized in profit or loss consisted of the following:

	2025	2024
Current income tax
Current tax expense recognized in the current year	$ 1,727	$ 4,896
Income tax on unappropriated earnings	99	-
Income tax adjustments on prior years	4,923	159
	6,749	5,055
Deferred income tax
Expense recognized in the current year	( 80,826)	15,687
Deferred income tax adjustments on prior years	4,929	( 2,586)
	( 75,897)	13,101
Income tax expense recognized in profit or loss	($ 69,148)	$ 18,156

Reconciliation of income before income tax and income tax expense recognized in profit or loss was as follows:

	2025	2024
Income tax expense (benefit) at the statutory rate for income before tax	($ 218,956)	$ 9,613
Tax effect of adjusting items
Investment losses (gains) accounted for using equity method	57,377	( 1,715)
Losses (gains) on valuation of financial asset	( 2,451)	( 3,211)
Tax-exempt income	16,471	1,767
Unrealized (realized) investment losses	25,511	( 33,542)
Others	28,467	( 6,902)
Income tax on unappropriated earnings	99	-
Unrecognized loss carry forwards	14,482	54,573
Adjustments for income tax of prior years in the current year	9,852	( 2,427)
Current income tax expense (income)	($ 69,148)	$ 18,156

(b) Current income tax liabilities

	December 31, 2025	December 31, 2024
Current income tax liabilities
Income tax payable	$ 2,041	$ 6,861
Less: Income tax withholding in the current period	( 2,041)	( 2,183)
	$ -	$ 4,678

	December 31, 2025	December 31, 2024
Deferred income tax assets
Temporary differences
Allowance for reduction of inventory to market	$ 45,811	$ 54,490
Defined benefit pension plan	22,930	25,399
Unused vacation bonus	4,725	4,567
Allowance for valuation loss of idle assets	37,726	-
Net operating loss carry forwards	149,721	106,581
Others	27,783	24,166
	$ 288,696	$ 215,203
Deferred income tax liabilities
Reserve for land revaluation increment tax	$ 96,653	$ 96,653
Unrealized exchange benefit	5,291	4,484
Unrealized financial product valuation benefit	-	1,568
Others	11,930	13,573
	$ 113,874	$ 116,278

(d) Deductible amount of the unused net operating loss carry forwards for deferred income tax assets unrecognized in consolidated financial statements.

	December 31, 2025	December 31, 2024
Net operating loss carry forwards
Due on 2035	$ 383,244	$ -
Due on 2034	329,000	329,439
Due on 2033	294,351	254,066
Due on 2032	148,153	141,454
Due on 2031	126,836	124,756
Due on 2030	322,919	257,093
Due on 2029	297,444	297,445
Due on 2028	166,394	166,394
Due on 2027	114,042	114,042
Due on 2026	118,268	118,268
Due on 2025	-	204,052
	$ 2,300,651	$ 2,007,009

(e) Income tax examination

The tax authorities have examined the profit-seeking enterprise annual income tax returns of LEALEA ENTERPRISE (Except for 2022), LEA JIE ENERGY Co., LI LING Film Co., Ltd., LIZAN INVESTMENT Co., Ltd., LIBOLON ENTERPRISE Co., Ltd., LIBOLON Energy Co., Ltd., and PT. INDONESIA LIBOLON FIBER SYSTEM through 2023.

BASIC AND DILUTED EARNINGS PER SHARE

Earnings per share (EPS) are computed as follows:

	Amounts (Numerator)		Earnings Per Share (NT$)
	Net profit (Belong to parent company's shareholder)	Number of Shares (Denominator) (In thousands)	Net profit (Belong to parent company's shareholder)
2025
Basic loss per share
The net loss attributable to ordinary shareholders for the period	($ 772,374)	989,627	($ 0.78)
Diluted LPS
Current profits (losses) attributable to common shareholders plus dilutive effect of potential ordinary share	($ 772,374)	989,627	($ 0.78)

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	Amounts (Numerator) Net profit (Belong to parent company's shareholder)	Number of Shares (Denominator) (In thousands)	Earnings Per Share (NT$) Net profit (Belong to parent company's shareholder)
2024
Basic loss per share
The net loss attributable to ordinary shareholders for the period	$ 272,542	989,627	$ 0.28
Dilutive effect of potential ordinary
Profit sharing bonus to employees	-	456
Diluted EPS
Current profits (losses) attributable to common shareholders plus dilutive effect of potential ordinary share	$ 272,542	990,083	$ 0.28

If the LEALEA ENTERPRISE may settle the profit sharing bonus to employees by the way of stock or cash, then in order to calculate the diluted earnings per share (EPS), the Company should presume that the profit sharing bonus to employees will be settled in the form of stocks and add the potential ordinary share dilution should be included in the weighted average number used in the calculation of diluted EPS if the shares have a dilutive effect. Before settling the number of share issued for profit sharing bonus to employees in next year, the dilutive effect of potential ordinary share will be continually considered when calculating the diluted EPS.

25. Business Combinations

(a) Acquisition of subsidiaries

	Main Businesses and Products	Acquisition date	With voting rights Ownership Interests/ Acquisition ratio (%)	Transfer consideration
LI LING Film Co., Ltd.	Manufacturing of nylon film	May 31, 2024	65.02%	$ 294,389

(1) The merged company originally held 14.61% of the shares of LI LING Film Co., Ltd., and after participating in its cash capital increase on June 1, 2024, the merged company's shareholding ratio increased to 65.02%, and it obtained control. The purpose of the merged company's acquisition of LI LING Film is to continue to expand the merged company's operations.

(2) The merged company already held 14.61% of the equity of LI LING Film Co., Ltd. before June 1, 2024. The fair value of the equity was re-measured by the merged company on the acquisition date and was NT$21,619 thousand. Therefore, the merged company recognized a disposal gain of NT$13,376 thousand and recorded it under non-operating income and expenses.

(b) Assets acquired and liabilities assumed on the acquisition date

	LI LING Film Co., Ltd.
Current Assets
Cash and cash equivalents	$ 289,380
Accounts receivable and Other Accounts Receivable	22,986
Inventories	115,849
Other	10,765
Noncurrent assets
Plant and equipment	1,027,268
Deferred income tax assets	76,836
Other	178,831
Current liabilities
Accounts payable and Other payables	( 527,727)
Other	( 398,919)
Noncurrent liabilities
Deferred income tax liabilities	( 14,736)
Other	( 532,616)
	$ 247,917

Prior to the date of publication of this consolidated financial statement, the accounting treatment of LI LING Film Co., Ltd. was based on the formal valuation report, and the necessary market valuation and other calculations had been completed. Therefore, it was recorded at fair value as taxable value

	LI LING Film Co., Ltd.
Transfer consideration	$ 294,389
Add: Non-controlling interest (34.98% of LI LING Film Co., Ltd. Ownership Interest)	86,733
Less: Fair value of identifiable net assets acquired	( 247,917)
Goodwill arising from acquisitions	$ 133,205

The goodwill arising from the acquisition of LI LING Film Co., Ltd. was mainly due to the control premium. In addition, the consideration paid for the merger includes the expected synergies, revenue growth and future market development. However, these benefits do not meet the recognition criteria for identifiable intangible assets and are therefore not recognized separately.

(d) Net cash outflow from acquisition of subsidiaries

	LI LING Film Co., Ltd.
Cash payment consideration	$ 294,389
Less: Cash and cash equivalents obtained	( 289,380)
	$ 5,009

(e) The impact of business mergers on operating results

The 2024 fiscal year operating results of the acquired company since the acquisition date are as follows:

	LI LING Film Co., Ltd.
Operating revenue	$ 332,438
Net income (loss)	($ 109,797)

If the acquisition of LI LING Film Co., Ltd. in June 2024 occurred on January 1, 2024, the proposed operating income of the consolidated company in 2024 would be NT$596,824 thousand and the proposed net loss would be NT$194,393 thousand. These amounts do not reflect the actual revenues and operating results that the combined company would have generated if the business combination had been completed on the commencement date of the acquisition year and should not be used as a forecast of future operating results.

Acquisition of subsidiaries that are not a single business

In order to expand and acquire the solar energy market, the merging company participated in the cash capital increase of LIBOLON Energy Co., Ltd. on January 2, 2025, with a cash investment of NT$63,672,000, and acquired a 60% stake. The aforementioned acquisition of equity is not considered a business under IFRS 3 "Business Combinations" and should be treated as an acquisition of assets.

The following is a summary of information regarding the assets acquired, liabilities assumed, and related net cash outflows as of the acquisition date:

(a) Assets acquired and liabilities assumed

	LIBOLON Energy Co., Ltd.
Current Assets
Cash and cash equivalents	$ 100,900
Other	14,042

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	LIBOLON Energy Co., Ltd.
Noncurrent assets
Prepayments for business facilities	171,781
Current liabilities
Accounts payable and Other payables	( 180,841 )
	$ 105,882

(a) Net cash inflow from acquisition of subsidiaries

	LIBOLON Energy Co., Ltd
Cash payment consideration	$ 63,672
Less: Cash and cash equivalents obtained	( 100,900 )
	($ 37,228)

27. Transactions involving non-controlling interests

As of August 31, 2025, the merged company failed to subscribe for the cash capital increase of LI LING Film Co., Ltd. in proportion to its shareholding, resulting in an increase in its shareholding from 65.02% to 73.15%.

Since the aforementioned transactions did not change the merged company's control over these subsidiaries, the merged company treats them as equity transactions.

28. CAPITAL RISK MANAGEMENT

Under the premise that the companies in the group are ensured to be operated continually, the Company manages its capital through optimizing the balance of the liabilities and equity for maximizing the shareholders' return on equity. The Company's overall strategy has not changed.

The Company does not have to comply with other external capital regulations

29. FINANCIAL INSTRUMENTS

(a) Fair value information—financial instruments not measured by fair value

The management of the Company believes that the carrying amounts of financial assets and financial liabilities not measured at fair value are close to their fair values or their fair values cannot be measured reliably.

(b) Fair value information—financial instruments measured at fair value on a repeatability basis

December 31, 2025

	Level 1	Level 2	Level 3	Total
Financial assets at fair value through profit or loss	$ 879,776	$ -	$ 373	$ 880,149
Financial assets at fair value through Other comprehensive profit or loss	$ 16,571	$ -	$ -	$ 16,571
December 31, 2024
	Level 1	Level 2	Level 3	Total
Financial assets at fair value through profit or loss	$ 258,068	$ 7,838	$ 373	$ 266,279
Financial assets at fair value through Other comprehensive profit or loss	$ 16,427	$ -	$ -	$ 16,427

No transfer has occurred between level 1 and level 2 of the fair value hierarchy in 2025 and 2024.

Financial Instruments	Valuation Techniques and Inputs
Derivative financial assets—Foreign exchange swap contracts	Discounted Cash Flow: Future cash flows are estimated based on observable at the end of the reporting period contract rates and discounted at a rate that reflect the credit risk and value of the currency.

(d) The valuation techniques and the inputs used in Level 3 fair value measurement

Unlisted and Non-OTC equity investments have adopted the asset-based valuation approach and to report the overall value of the investment target in accordance with the total value of individual assets and individual liabilities.

(e) Categories of financial instruments

	December 31, 2025	December 31, 2024
Financial assets
At fair value through profit or loss
Mandatory to measure at fair value through profit and loss	$ 880,149	$ 266,279
Measured at fair value through other comprehensive profit or loss - bond investments	16,571	16,427
Carried at amortized cost (Note 1)	2,017,641	2,035,866
Financial liabilities
Carried at amortized cost (Note 2)	7,968,862	7,440,536

Note 1: The balance includes cash and cash equivalents, debt instrument investments, notes receivable and accounts receivable, other financial assets, receivables from related parties and margin deposits, and other financial assets measured at amortized cost.

Note 2: The balance includes financial liabilities measured at amortized cost, such as short-term borrowings, short-term bills payable, notes payable, accounts payable, other payables, Loans payable to related parties, long-term borrowings due within one year, other non-current liabilities, margin deposits, and long-term borrowings.

(f) The net profit generated from the trading of derivative financial products in fiscal year 2025 was NT$10,519 thousand, which are accounted for as non-operating income and expenses.

(g) The net profit from the operation of financial derivatives in 2024 is NT$130,572 thousand, which is respectively NT$7,838 thousand for unsettled benefit and NT$122,734 thousand for settled gains, which are accounted for as non-operating income and expenses.

(h) Financial risk management objectives and policy

The principal financial instruments applied by the Company include equity and liability investments, bank loans, account receivable, account payable, etc. The finance management department of the Company provides services to business units and coordinates operations in the domestic and overseas financial markets by supervising internal risk exposure reports and managing financial risks related to the operations of the Company in accordance with the risk level and breadth analyses. Such risks are consist of market risks that includes exchange rate risk, interest rate risk and other price risk, credit risks, and liquidity risks.

The Company applies derivative financial instruments to hedge risks for mitigating risk impacts. The derivative financial instruments applied is regulated by the policies approved by the Board of Directors of the Company, which are written principles for exchange rate risk, interest rate risk, credit risk, the utilization of derivative and non-derivative financial instruments, and the investment of remaining circulating capital. Internal auditors continue to review compliance with policies and the risk exposure limit. The Company did not trade financial instruments (including derivative financial instruments) for speculative purposes.

66 -

67 -
Market risks

The principal financial risks that the Company bears for operating activities are foreign currency fluctuation risk and interest rate fluctuation risk.

(1) Rate risk.

The Company engages in various derivative financial instruments to manage foreign currency exchange rate risks, including the utilization of forward exchange contract to hedge currency exchange rate risks associated with exports.

The Company’s exposures to financial instrument market risks and its management and measurement methods have not changed.

Sensitivity Analysis

The Company conducts risk measurement for the position of the foreign currency financial assets and liabilities that has significant impacts to the Company after considering the net position of the unexpired cross currency swap contracts and foreign exchange swap contracts.

The Company is mainly affected by fluctuations in the exchange rate of the U.S. dollar and Chinese yuan.

The sensitivity analysis only included circulating monetary items denominated in foreign currencies and adjusted the translation at the end of year to a 1% change in exchange rate. In the table below, a positive number represented an increase in income before income tax when New Taiwan dollar (functional currency) depreciated by 1%. The impact on income before income tax would be of the same amount in negative when New Taiwan dollar (functional currency) appreciated by 1%.

December 31, 2025

	Foreign Currency	Foreign Currency (In Thousands)	Exchange Rate	Carrying Amount (NT$) (In Thousands)	Sensitivity Analysis
					Variation	Profit and Loss Impact
Financial Assets
Monetary items
US Dollar to	$ 30,787,489	$ 30,787	31.43	$ 967,651	1%	$ 9,677
New Taiwan Dollar
Chinese yuan to	5,990	6	4.496	27	1%	-
New Taiwan Dollar
Non-monetary items
Non-derivatives
US Dollar to	96,149	96	31.43	3,022	1%	30
New Taiwan Dollar
Financial Liability
Monetary items
US Dollar to	26,952,103	26,952	31.43	847,105	1%	( 8,471 )
New Taiwan Dollar
Chinese yuan to	24,894	25	4.496	112	1%	( 1 )
New Taiwan Dollar

December 31, 2024

	Foreign Currency	Foreign Currency (In Thousands)	Exchange Rate	Carrying Amount (NT$) (In Thousands)	Sensitivity Analysis
					Variation	Profit and Loss Impact
Financial Assets
Monetary items
US Dollar to	$ 26,245,053	$ 26,245	32.785	$ 860,444	1%	$ 8,604
New Taiwan Dollar
Chinese yuan to	3,989	4	4.438	18	1%	-
New Taiwan Dollar
Non-monetary items
Non-derivatives
US Dollar to	96,149	96	32.785	3,152	1%	3
New Taiwan Dollar
Derivatives
US Dollar to	25,000,000	25,000	32.785	7,838	1%	8
New Taiwan Dollar
Financial Liability
Monetary items
US Dollar to	23,462,743	23,463	32.785	769,226	1%	( 7,692 )
New Taiwan Dollar
Chinese yuan to	26,544	27	4.478	119	1%	( 1 )
New Taiwan Dollar

(2) Interest Rate Risk

Interest rate exposure arises because entities within the merged company borrow funds at both fixed and floating rates.

The company's financial assets and financial liabilities subject to interest rate risk on the balance sheet date are as follows:

	December 31, 2025	December 31, 2024
Fair value interest rate risk
- financial assets	$ 549,626	$ 746,799
- financial liabilities	2,886,183	3,053,404
Cash flow interest rate risk
- financial liabilities	3,537,187	2,504,775

The sensitivity analysis on interest rate risk is based on the assumption that interest rates rise/fall by one percentage point. The combined company's cash outflows/inflows in 2025 and 2024 were NT$35,372 thousand and NT$25,048 thousand respectively.

Credit risks

Credit risk refers to the risk that the counterparty will default on its contractual obligations resulting in financial losses to the Company. The Company always requires the provision of collateral or other guarantee rights from major transaction partners. Accordingly, the management of the Company believes that the credit risk of the Company has been significantly reduced.

Liquidity risks

The Company supports its business operations and reduces the impact of cash flow fluctuation through appropriate management and the maintenance of sufficient cash and cash equivalents. The management of the Company has supervised bank financing conditions and ensured compliance with loan contracts.

Financing and loans from banks are regarded as an important source for maintaining liquidity for the Company. For the unused financing amount of the merged company, please refer to the description of the amount in (3.2) below.

(3.1) The maturity analysis of remaining contracts of non-derivative financial liabilities is based on the earliest possible date on which the Company may be required to make repayments and the undiscounted cash flows of financial liabilities (including principal and estimated future interest). Therefore, the Company may be requested to immediately return bank loans in the earliest period specified in the table below without considering the probability of bank's immediate execution of such rights. Maturity analysis of other non-derivative financial liabilities shall be prepared in accordance with the agreed repayment date. The analysis is as follows:

December 31, 2025

Non-derivative financial liabilities	Within 1 year	Within 1 to 2 years	Within 2 to 5 years	More Than 5 Years
Short-term loans	$ 4,071,000	$ -	$ -	$ -
Short-term bills payable	184,000	-	-	-
Notes payable (including related parties)	15,881	-	-	-
Accounts payable (including related parties)	169,625	-	-	-
Other payables (including related parties)	275,126	-	-	-
Loans payable to related parties	1,159,560	-	-	-
Long-term loans (including due within one year or one operating cycle)	322,054	1,653,533	111,600	-
Guarantee deposits	5,531	-	-	-
Liability provision	1,495	-	-	-
Lease liabilities	8,571	7,214	15,533	74,015
Other non-current liabilities	308	360	284	-
	$ 6,213,151	$ 1,661,107	$ 127,417	$ 74,015

December 31, 2024

Non-derivative financial liabilities	Within 1 year	Within 1 to 2 years	Within 2 to 5 years	More Than 5 Years
Short-term loans	$ 3,691,000	$ -	$ -	$ -
Short-term bills payable	200,000	-	-	-
Notes payable (including related parties)	46,994	-	-	-
Accounts payable (including related parties)	384,173	-	-	-
Other payables (including related parties)	304,741	-	-	-
Loans payable to related parties	1,152,506	-	-	-
Long-term loans (including due within one year or one operating cycle)	321,588	1,085,687	247,500	-
Guarantee deposits	5,531	-	-	-
Lease liabilities	6,093	2,726	4,413	-
Other non-current liabilities	668	-	148	-
	$ 6,113,294	$ 1,088,413	$ 252,061	$ -

(3.2) Financing limit (including letter of credit opening limit)

	December 31, 2025	December 31, 2024
Unsecured bank loan facility
- Used amount	$ 2,452,187	$ 2,615,775
- Unused amount	4,386,570	4,784,657
	$ 6,838,757	$ 7,400,432
Secured bank loan facility
- Used amount	$ 3,890,000	$ 2,930,000
- Unused amount	1,703,021	2,318,131
	$ 5,593,021	$ 5,248,131

30. RELATED PARTY TRANSACTIONS

Intercompany transactions, account balances, income and expenses between the Company and its subsidiaries, which are related parties of the Company, have been eliminated upon consolidation; therefore, those items are not disclosed in this note. Except the items disclosed in the note, the following is a summary of transactions between the Company and other related parties:

(a) Name and relationship of related parties

Related Party Name	Relationship with the Company
LI PENG Enterprise Co., Ltd.	Associate
LEALEA Technology Co., Ltd.	Associate
Rich Development Co., Ltd.	Associate
FU LI Express Co., Ltd.	Associate
LI MAO Investment Co., Ltd.	Associate
LI XING Investment Co., Ltd.	Associate
HONG XING Investment Co., Ltd.	Associate
LI LING Film Co., Ltd.	Associate / Subsidiary
(subsidiary since June 1, 2024)
REMONDIS LEALEA Enterprise Co., Ltd.	Associate (A non-affiliated company since August 1, 2025)
DONG TING Investment Co., Ltd.	Substantive related party
LIBOLON (Shanghai) International Trading Co., Ltd	Substantive related party
LIBOLON Energy Co., Ltd.	Substantive related party
ETON Petrochemical Co., Ltd.	Substantive related party
APEX FONG YI Technology Co., Ltd.	Substantive related party
BLOOMING Development Co., Ltd.	Substantive related party
PT. INDONESIA HWALIN KNITTING	Substantive related party
LEALEA HOTELS & RESORTS Co., Ltd.	Substantive related party
KUO, SHAO-YI	Chairman of the Board

(b) Net revenue

Related Party Category/Name	2025	2024
Associates
LI PENG Enterprise Co., Ltd.	$ 1,150,508	$ 1,204,249
Others	243	14,446
Other related parties	1,085	11,322
	$ 1,151,836	$ 1,230,017

The Company's sales to associates and other related parties were not significantly different from the general transactions.

Related Party Category/Name	2025	2024
Associates
LI PENG Enterprise Co., Ltd.	$ 507,649	$ 871,614
Others	6,449	10,406
Other related parties	189,917	229,715
	$ 704,015	$ 1,111,735

The Company's purchases from associates and other related parties were not significantly different from the general transactions.

(d) Receivables from related parties (excluding loans to related parties)

Item	Related Party Category/Name	December 31, 2025	December 31, 2024
Accounts receivable	Associates
	LI PENG Enterprise Co., Ltd.	$ 64,508	$ 126,397
	Others	-	4
	Other related parties	-	8,245
		$ 64,508	$ 134,646
Other notes receivable	Associates
	LI PENG Enterprise Co., Ltd.	$ -	$ 25

No deposit has been collected for outstanding amounts receivable from related parties. Expected credit losses were not included in the amounts receivable from related parties at the end of 2025 and 2024.

(e) Payables to related parties (excluding borrowings from related parties)

Item	Related Party Category/Name	December 31, 2025	December 31, 2024
Notes payable	Associates
	LI PENG Enterprise Co., Ltd.	$ 15,202	$ 27,468
	Others	463	971
		$ 15,665	$ 28,439
Accounts payable	Associates
	LI PENG Enterprise Co., Ltd.	$ 33,538	$ 52,087
	Others	340	773
	Other related parties
	LIBOLON (Shanghai)	38,918	46,912
	International Trading Co., Ltd
	Others	9,356	11,368
		$ 82,152	$ 111,140
Accrued expense and Other notes payable	Associates	$ 14,507	$ 19,134
	Other related parties	3,080	257
		$ 17,587	$ 19,391

No guarantee is provided for the balance of circulating payables to related parties.

(f) Acquisition of property, plant and equipment

	Get price
Related Party Category/Name	2025	2024
Associates
Other Equipment	$ 1,950	$ 1,050

(g) Gains on disposal of property, plant and equipment

	Disposal Price		Gain (loss) on disposal
	2025	2024	2025	2024
Associates
Houses and Construction	$ 146	$ -	$ 4	$ -
Transportation Equipment	2,150	-	308	-
	$ 2,296	$ -	$ 312	$ -

(h) Lease Agreement

Related Party Category/Name	2025	2024
Acquisition of right-to-use assets
Associates
LI PENG Enterprise Co., Ltd.	$ 66,435	$ -
Account items	Related Party Category/Name	December 31, 2025
---	---	---
Lease liabilities - current	Associates-LI PENG Enterprise Co., Ltd.	$ 2,075
Lease liabilities - non-current	Associates-LI PENG Enterprise Co., Ltd.	66,435
		$ 65,245
	Receive payment
---	---	---
Related Person Category/Name	2025	2024
Interest expenses
Associates
LI PENG Enterprise Co., Ltd.	$ 849	$ -
Rental fees
Associates
LI PENG Enterprise Co., Ltd.	$ 2,038	$ -

In June 2025, the merged company leased land and buildings from its associates LI PENG Enterprise Co., Ltd. for a term of 35 years and 15 years respectively. The rent was based on the rental level of similar assets and was paid monthly as a fixed lease payment in accordance with the lease agreement.

Lease costs include short-term leases and lease costs for low-value assets, as well as variable rents not dependent on indices and rates. The total future lease payments for short-term leases and leases for low-value assets are as follows:

	2025	2024
Total lease payments to be made in the future	$ 87,826	$ -

(i) Acquisition of other assets

	Proceeds from Acquisition
Related Party Category/Name	2025	2024
Associates
LEALEA Technology Co., Ltd.
Computer software	$ 235	$ 480

(j) Advance loans to related parties

	December 31, 2025
	Highest balance	Balance, end of year	Interest range(%)	Interest income	Interest receivable
Associates
LI PENG Enterprise Co., Ltd.	$ 97,000	$ 92,000	1.83032~1.8721	$ 1,561	$ 143
Other related parties
BLOOMING Development Co., Ltd.	450,000	450,000	2.825	12,504	1,080
ETON Petrochemical Co., Ltd.	398,460	396,018	2.53032~2.5721	7,337	864
	$ 945,460	$ 938,018		$ 21,402	$ 2,087
	December 31, 2024
	Highest balance	Balance, end of year	Interest range(%)	Interest income	Interest receivable
Associates
LI PENG Enterprise Co., Ltd.	$ 117,000	$ 80,000	1.69333~1.87226	$ 1,439	$ 137
LI LING Film Co., Ltd.	108,000	(Note)	2.28884~2.47371	896	-
Other related parties
BLOOMING Development Co., Ltd.	450,000	450,000	2.72~2.825	11,515	1,080
ETON Petrochemical Co., Ltd.	351,340	-	2.28884~3.1	1,591	73
	$1,026,340	$ 530,000		$ 15,441	$ 1,290

Note : A subsidiary since June 1, 2024, the merger has been eliminated.

(k) Loans payable to related parties

	December 31, 2025
	Highest balance	Balance, end of year	Interest range(%)	Interest income	Interest receivable
Associates
LI PENG Enterprise Co., Ltd.	$ 1,104,166	$ 923,187	2.39011~2.55517	$ 23,530	$ 2,010
LI MAO Investment Co., Ltd.	171,000	92,000	1.83919~2.55517	2,150	216
LI XING Investment Co., Ltd.	233,389	84,373	1.83919~2.55517	4,283	208
HONG XING Investment Co., Ltd.	120,000	60,000	1.83919~2.55517	1,993	151
LEALEA Technology Co., Ltd	215,173	-	2.5~2.52	734	406
Other related parties
APEX FONG YI Technology Co., Ltd.	17,500	-	2.12593~2.1288	37	-
	$ 1,861,228	$ 1,159,560		$ 32,727	$ 2,991
	December 31, 2024
---	---	---	---	---	---
	Highest balance	Balance, end of year	Interest range(%)	Interest income	Interest receivable
Associates
LI PENG Enterprise Co., Ltd.	$ 1,105,994	$ 791,272	2.40049~3.1	$ 18,635	$ 1,654
LI MAO Investment Co., Ltd.	159,000	79,000	1.69002~2.48493	1,115	29
LI XING Investment Co., Ltd.	206,627	204,734	1.69002~3.1	3,296	308
HONG XING Investment Co., Ltd.	120,000	60,000	1.69002~2.46529	1,163	22
LEALEA Technology Co., Ltd	18,000	-	2.35667	10	-
Other related parties
APEX FONG YI Technology Co., Ltd.	18,500	17,500	2.1684	17	17
	$ 1,628,121	$ 1,152,506		$ 24,236	$ 2,030

The interest rate for the Company's borrowings from associates and other related parties is equivalent to the market interest rate. Loans to associates and other related parties are unsecured loans.

(l) Long-term receivables

	December 31, 2024/2024
Associates	Current	Noncurrent	Interest Income
LI LING Film Co., Ltd.	(Note)	(Note)	$ 3,119

Note : A subsidiary since June 1, 2024, the merger has been eliminated.

(m)Others

Rental Income	2025	2024
Associates
LI PENG Enterprise Co., Ltd.	$ 26,783	$ 28,278
Others	7,866	11,119
Other related parties	5,471	5,837
	$ 40,120	$ 45,234

The rental income collected by the Company from associates and other related parties is in accordance with local market quotations, and the payment term is a one-month commercial promissory note.

Rent Expense	2025	2024
Associates
LI PENG Enterprise Co., Ltd.	$ 10,357	$ 9,546
Others	-	13
	$ 10,357	$ 9,559

The Company pays rents to associates in accordance with local market quotations, and the payment term is a one-month commercial promissory note.

Export Fees	2025	2024
Associates	$ 7,632	$ 12,107
Information Service Fee	2025	2024
Associates
LEALEA Technology Co., Ltd.	$ 21,915	$ 20,802
Other Income	2025	2024
Associates	$ 4,099	$ 2,741
Other related parties	2,446	2,352
	$ 6,545	$ 5,093

Consumables – Public Fluid	2025	2024
Associates
LI PENG Enterprise Co., Ltd.	$ 61,714	$ 66,823
Processing costs	2025	2024
Associates
LI PENG Enterprise Co., Ltd.	$ 3,219	$ 4,857
Other related parties
PT.INDONESIA
HWALIN KNITTING	10,665	10,655
	$ 13,884	$ 15,512

(n) Compensation of key management personnel

The compensation to directors and other key management personnel were as follows:

	2025	2024
Short-term employee benefits	$ 30,108	$ 32,740
Post-employment benefits	-	213
	$ 30,108	$ 32,953

The compensation to directors and other key management personnel were determined by the Compensation Committee of the Company in accordance with the individual performance and the market trends.

(o) Transactions with other related parties

Related Party Category/Name	Item	Amount of Signed and Unfinished Contracts (Untaxed)	Balance of Prepayments for Equipment
Associates
LEALEA Technology Co., Ltd.	Software	$ 1,938	$ -
Related Party Category/Name	Item	Amount of Signed and Unfinished Contracts (Untaxed)	Balance of Prepayments for Equipment
Associates
LEALEA Technology Co., Ltd.	Software	$ 320	$ -

(p) Inventories

In May 2025 and June 2023, LEALEA Company signed a management service contract for a joint construction and sales case with BLOOMING Development Co., Ltd., The contract amounts were NT$15,900 thousand and NT$38,110 thousand, which was divided into four payments based on the service completion progress. As of December 31, 2025 and 2024, NT$21,705 thousand and NT$9,527 thousand had been paid and recorded under Inventory – Construction Business. For related information, please refer to Note 9

(q) Provide guarantee

The long-term and short-term loans of the merged company as of December 31, 2015 and 2014 were jointly and severally guaranteed by Mr. KUO, SHAO-YI, and the chairman of the board of directors of the Company. In addition, some of the borrowings of LI LING Film Co., Ltd. and LEA JIE Energy Co., Ltd. were transferred to the Company as joint guarantee starting from September and October 2014, respectively.

PLEDGED ASSETS

Assets provided by the Company as collaterals to financial institutions were as follows:

	December 31, 2025	December 31, 2024
Accounts receivable (Note 8)	$ 46,820	$ 50,713
Inventory (Note 9)	187,280	202,850
Investment using the equity method (Note 13)	116,312	136,126
Property, plant and equipment (Note 14)	5,040,459	4,052,995
Investment property(Note 16)	320,232	327,106
	$ 5,711,103	$ 4,769,790

SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACTUAL COMMITMENTS

Significant contingent liabilities and unrecognized commitments of the Company as of balance sheet date, excluding those disclosed in other notes, were as follows:

As of December 31, 2025 and 2024, the Company still has amounts available under issued but unused letters of credit, illustrated as follows:

Unit: Foreign Currencies (In Thousands)

	December 31, 2025	December 31, 2024
USD	$ -	$ 274
EURO	159	-
Japanese Yen	-	14,904

33. EXCHANGE RATE INFORMATION OF SIGNIFICANT FOREIGN-CURRENCY FINANCIAL ASSETS AND LIABILITIES

The following information was summarized according to the foreign currencies other than the functional currency of the Company. The exchange rates disclosed were used to translate the foreign currencies into the functional currency. The significant financial assets and liabilities denominated in foreign currencies were as follows:

	December 31, 2025			Unit: Foreign Currencies/New Taiwan Dollars in Thousands
	Foreign Currency	Exchange Rate	Carrying Amount	Foreign Currency	Exchange Rate	Carrying Amount
Foreign Currency Assets
Monetary items
USD	$ 30,787,489	31.43 (USD.NTD)	$ 967,651	$ 26,245,053	32.785 (USD.NTD)	$ 860,444
RMB	5,990	4.496 (RMB.NTD)	27	3,989	4.478 (RMB.NTD)	18
Non-Monetary items
Financial assets measured at fair value through profit and loss — Noncurrent USD	96,149	31.43 (USD.NTD)	3,022	96,149	32.785 (USD.NTD)	3,152
Investment using the equity method IDR	617,952,802,871	0.0018728 (IDR.NTD)	1,157,302	652,143,902,012	0.0020285 (IDR.NTD)	1,322,874
Financial assets measured at fair value through profit and loss — Current USD	- (Notional Amount)	31.43 (USD.NTD)	-	25,000,000 (Notional Amount)	32.785 (USD.NTD)	7,838
Foreign Currency Liabilities
Monetary items
USD	26,952,103	31.43 (USD.NTD)	847,105	23,462,743	32.785 (USD.NTD)	769,226
RMB	24,894	4.496 (RMB.NTD)	112	26,544	4.478 (RMB.NTD)	119

The unrealized significant foreign currency profits and losses are as follow:

The unrealized significant foreign currency exchange profits and losses in the year 2025 and 2024 are loss of NT$191,115 thousand and profit of NT$321,000 thousand accordingly. Due to the wide variety of foreign currency transactions, it is not possible to disclose exchange profits and losses based on the significant foreign currency.

34. ADDITIONAL DISCLOSURES

(a) Following are the additional disclosures related to major transactions and

(1) Financings provided: See Table 1 attached.

(2) Endorsement/guarantee provided: See Table 2 attached.

(3) Marketable securities held at the end of the period (excluding investments in subsidiaries and associates): See Table 3 attached.

(4) Total purchases from or sales to related parties of at least NT$100 million or 20% of the paid-in capital: See Table 4 attached.

(5) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: See Table 5 attached.

(6) Others: The business relationship between the parent and the subsidiaries and significant transactions between them: See Table 6 attached.

(b) Reinvestments required by the Securities and Futures Bureau for the Company: See Table 7 attached.

(1) The name of the investee in mainland China, the main businesses and products, its issued capital, method of investment, information on inflow or outflow of capital, percentage of ownership, income (losses) of the investee, share of profits/losses of investee, ending balance, amount received as dividends from the investee, and the limitation on investee: None.

(2) Significant direct or indirect transactions with the investee, its prices and terms of payment, unrealized gain or loss, and other related information which is helpful to understand the impact of investment in mainland China on financial reports: None.

(2.1) Purchase amount and percentage, and the ending balance and percentage of payables.

(2.2) Sales amount and percentage, and the ending balance and percentage of receivables.

(2.3) The amount of property transactions and the profits and losses generated

(2.4) Ending balance and purposes of endorsement, guarantee or collateral provided.

(2.5) The maximum balance, ending balance, interest rate range and total amount of current interest of financing.

(2.6) Other transactions having a significant impact on profit or loss or financial status of the period, such as providing or receiving services.

79 -

35. OPERATING SEGMENTS INFORMATION

Information provided to the chief operating decision makers used for resource allocation and/or performance assessment, focusing on every operating segment that delivered product or service. The reportable operating segments of the Company are as follows:

Textile segment is mainly engaged in the manufacturing and sales of polyester fully oriented yarn, polyester chip, polyester draw textured yarn, weaving, dyeing and finishing, processing of artificial fiber fabrics.

Construction segment is mainly engaged in building, land, and parking space related businesses.

Film segment is mainly engaged in the Manufacturing of nylon film.

Investment and other sectors are mainly investment in various production businesses, coal trading, wholesale of leisure and sports products, power generation and sales, and retail businesses.

(a) Operating segment revenue and operating results

The operating revenue and results of the Company’s continually operating segments are analyzed in accordance with the reporting operating segments, illustrated as follows:

	2025
	Textile Segment	Construction Segment	Film segment	Investment and other Segment	Write Off	Total
Operating revenue (including proceeds from allocated and transferred fund)	$ 7,234,274	$ -	$ 326,287	$ 1,213,803	($ 1,661,310 )	$ 7,113,054
Cost of revenue	7,076,860	( 3,455 )	434,657	1,085,907	( 1,666,039 )	6,927,930
Gross Profit	157,414	3,455	( 108,370 )	127,896	4,729	185,124
Operating expense	( 441,604 )	( 1,226 )	( 23,682 )	( 104,620 )	3,819	( 567,313 )
Operating profit (loss)	( $ 284,190 )	$ 2,229	( $ 132,052 )	$ 23,276	$ 8,548	( 382,189 )
Non-operating revenue and expense						( 577,718 )
Profit before income tax						( $ 959,907 )
	2024
	Textile Segment	Construction Segment	Film segment	Investment and other Segment	Write Off	Total
Operating revenue (including proceeds from allocated and transferred fund)	$ 8,753,200	$ -	$ 332,438	$ 801,234	($ 1,616,995 )	$ 8,269,877
Cost of revenue	8,567,657	( 5,759 )	409,941	675,287	( 1,617,547 )	8,029,579
Gross Profit	185,543	5,759	( 77,503 )	125,947	552	240,298
Operating expense	( 516,315 )	( 661 )	( 15,391 )	( 98,387 )	3,730	( 627,024 )
Operating profit (loss)	( $ 330,772 )	$ 5,098	( $ 92,894 )	$ 27,560	$ 4,282	( 386,726 )
Non-operating revenue and expense						651,123
Profit before income tax						$ 264,397

The operating segment revenue refers to the profit earned by each segment, excluding the profits and losses from the following, the share of associates amortized using the equity method, disposal of associates, rental income, interest income, disposal of property, plant and equipment, disposal of investments, foreign currency exchange, financial instrument evaluation, financial costs, and Income tax expense. The measured amount information is provided to the chief operating decision makers used for resource allocation and/or performance assessment.

(b) Assets and liabilities of operating segments

Since the measured amount of assets and liabilities is not provided to the operating decision makers, no measured amount of assets and liabilities is disclosed here.

(d) Geographic information

The Company mainly operates in Asia.

The revenue from external customers of the Company's continually operating segments is differentiated by the operating locations and locations of noncurrent assets, illustrated as follows:

	Revenue from External Customers		Noncurrent Assets
	2025	2024	December 31, 2025	December 31, 2024
Asia	$ 6,333,271	$ 7,132,078	$ 8,412,167	$ 8,995,849
Americas	601,189	968,737	-	-
Europe	154,601	144,504	-	-
Other areas	23,993	24,558	-	-
	$ 7,113,054	$ 8,269,877	$ 8,412,167	$ 8,995,849

Non-current assets exclude financial instruments and deferred income tax assets.

(e) Major customers information

The revenue from a single customer reaches more than 10% of the total revenue of the consolidated company as follows:

	2024	2023
Customer A	$1,204,249	$1,125,543

LEALEA ENTERPRISE CORPORATION LIMITED AND SUBSIDIARIES

TABLE 1

FINANCINGS PROVIDED

FOR THE YEAR 2025

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

No. (Note 1)	Financing Company	Counterparty	Financial Statement Account (Note 2)	Related Party	Maximum Balance for the Period (Note 3)	Ending Balance (Note 8)	Amount Actually Drawn	Interest Rate Range (%)	Nature for Financing (Note 4)	Reason for Financing (Note 6)	Allowance for Bad Debt	Collateral		Financing Limits for Each Borrowing Company (Notes 7)	Financing Company's Total Financing Amount Limits (Notes 7)
												Item	Value
0	LEALEA Enterprise Co., Ltd.	Eton Petrochemical International Co., Ltd.	Advance loans to related parties	Yes	$ 125,000	$ 125,000	-	2.53053%~2.53355%	2	Working capital	-	-		958,711	3,834,844
0	LEALEA Enterprise Co., Ltd.	PT. INDONESIA LIBOLON FIBER SYSTEM	x	Yes	950,000	900,000	716,698	2.45824%~3.1%	2	Working capital	-	-		958,711	3,834,844
0	LEALEA Enterprise Co., Ltd.	ETON Petrochemical Co., Ltd.	x	Yes	800,000	800,000	396,018	2.33751%~3.1%	2	Working capital	-	-		958,711	3,834,844
0	LEALEA Enterprise Co., Ltd.	BLOOMING Development Co., Ltd.	x	Yes	900,000	450,000	450,000	2.825%	2	Working capital	-	-		958,711	3,834,844
1	LI HAO Investment Co., Ltd.	LI PENG Enterprise Co., Ltd.	x	Yes	65,000	60,000	60,000	1.8122%~1.8723%	2	Working capital	-	-		83,218	322,873
1	LI HAO Investment Co., Ltd.	LI LING Film Co., Ltd.	x	Yes	68,000	60,000	-	2.28884%~2.53355%	2	Working capital	-	-		83,218	322,873
1	LI HAO Investment Co., Ltd.	LEALEA Enterprise Co., Ltd.	x	Yes	65,000	60,000	-	1.83032%~1.872263%	2	Working capital	-	-		83,218	322,873
1	LI HAO Investment Co., Ltd.	PT. INDONESIA LIBOLON FIBER SYSTEM	x	Yes	71,000	60,000	59,403	2.45824%~3.1%	2	Working capital	-	-		83,218	322,873
1	LI HAO Investment Co., Ltd.	LIBOLON Energy Co., Ltd.	x	Yes	30,000	30,000	17,000	2.40897%~2.53355%	2	Working capital	-	-		83,218	322,873
2	LIZAN INVESTMENT Co., Ltd.	LI LING Film Co., Ltd.	x	Yes	32,000	32,000	9,000	2.53053%~2.53355%	2	Working capital	-	-		47,903	191,614
2	LIZAN INVESTMENT Co., Ltd.	LI PENG Enterprise Co., Ltd.	x	Yes	35,000	32,000	32,000	1.8122%~1.8723%	2	Working capital	-	-		47,903	191,614
2	LIZAN INVESTMENT Co., Ltd.	LEALEA Enterprise Co., Ltd.	x	Yes	35,000	-	-	1.83032%~1.872263%	2	Working capital	-	-		47,903	191,614
3	LEA JIE Energy Co., Ltd.	LIBOLON Enterprise Co., Ltd.	x	Yes	30,000	30,000	17,000	2.15%~2.50358%	2	Working capital	-	-		32,880	131,519

Note 1: The description of number column is as follows:
(1) The issuer is coded "0".
(2) The investee company is numbered sequentially from Arabic numeral 1 according to the company type.
Note 2: The accounts receivable from associates, accounts receivable from related parties, shareholder transactions, prepayments, temporary payments, etc. that are classified as nature for financing must be filled in this field.
Note 3: "Maximum balance for the period" refers to the highest balance of lending amount to others in the current year.
Note 4: "Nature for financing" should be listed as (1) companies or firms having business relationship with the Company, or (2) ones requiring short-term financing.
Note 5: As the nature of financing is companies or firms having business relationship with the Company, the business transaction amount should be filled in. The transaction amount refers to the previous year's transaction amount between the lending company and the lender.
Note 6: As the nature of financing is companies or firms requiring short-term financing, the reasons of financing and the usage of funds, such as repayment of loans, purchase of equipment, working capital turnover, etc., should be specified.
Note 7: The fields should be filled in accordance with the procedures for lending funds to other parties of the Company that specifies financing limits for each borrowing Company as 10% of the shareholders' equity of LEALEA Enterprise Co., Ltd., LEA JIE Energy Co., Ltd., LI HAO Investment Co., Ltd., and LI ZAN Investment Co., Ltd and the financing company's total financing amount limits as 40% of the shareholders' equity of LEALEA Enterprise Co., Ltd., LEA JIE Energy Co., Ltd., LI HAO Investment Co., Ltd., and LI ZAN Investment Co., Ltd.
Note 8: Should a public company comply with the Article 14-1 of "Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies" to submit financing reports to the Board of Directors for approval one by one, even though the financing funds have not yet been allocated, the financing amount approved by the Board of Directors should still be included in the balance announcement for exposing risks. When the funds are subsequently repaid, the balance after repayment shall be disclosed to reflect the adjustment of risk. In accordance with the Article 14-2 of the Regulations, a public company may authorize the chairman of the Board of Directors to approve a financing funds in a certain amount and allocated it in installments or revolving within a one-year period, but the financing funds approved by the Board of Directors should still be used as the declared balance. Although the funds will be repaid thereafter, in consideration that the loan may be allocated again, the financing funds approved by the Board of Directors should be used as the announced balance.

83 -

LEALEA ENTERPRISE CORPORATION LIMITED

TABLE 2

PROVISION OF ENDORSEMENTS AND GUARANTEES TO OTHERS

FOR THE YEAR 2025

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

No. (Note 1)	Endorser/ guarantor	Party being endorsed/ guaranteed		Limit on endorsements/ guarantees provided for a single party (Note 3)	Maximum outstanding endorsement/ guarantee amount (Note 4)	Outstanding endorsement/ guarantee amount (Note 5)	Actual amount drawn down (Note 6)	Amount of endorsements/ guarantees secured with collateral	Ratio of accumulated endorsement/ guarantee amount to net asset value of the endorser/ guarantor company (%)	Ceiling on total amount of endorsements/ guarantees provided (Note 3)	Provision of endorsements/ guarantees by parent company to subsidiary (Note 7)	Provision of endorsements/ guarantees by subsidiary to parent company (Note 7)	Provision of endorsements/ guarantees to the party in Mainland China (Note 7)
		Company Name	Relationship with the endorser/ guarantor (Note2)
0	LEALEA Enterprise Co., Ltd.	LEA JIE ENERGY Co., Ltd.	2	$ 1,917,422	$ 1,080,725	$ 1,080,725	$ 10,000	$ -	11.28	$ 3,834,844	Y	N	N
0	LEALEA Enterprise Co., Ltd.	LI LING Film Co., Ltd.	2	1,917,422	520,000	520,000	299,867	-	5.43	$ 3,834,844	Y	N	N

Note 1: The description of number column is as follows:

(1) The issuer is coded "0".

(2) The investee company is numbered sequentially from Arabic numeral 1 according to the company type.

Note 2: The following code represents the relationship with the company:

A company with which it does business.
A company in which the public company directly and indirectly holds more than 50 percent of the voting shares.
A company that directly and indirectly holds more than 50 percent of the voting shares in the public company.
A company in which the public company holds, directly or indirectly, 90% or more of the voting shares.
A company that fulfills its contractual obligations by providing mutual endorsements/guarantees for another company in the same industry or for joint builders for purposes of undertaking a construction project.
A company that all capital contributing shareholders make endorsements/ guarantees for their jointly invested company in proportion to their shareholding percentages.
Companies in the same industry provide among themselves joint and several securities for a performance guarantee of a sales contract for pre-construction homes pursuant to the Consumer Protection Act for each other.

Note 3: Limit on endorsements/ guarantees provided for a single party is 20% of the Lealea company's shareholders' equity; Ceiling on total amount of endorsements/ guarantees provided is 40% of the Lealea company's shareholders' equity.

Note 4: Maximum outstanding endorsement/ guarantee amount in the current year.

Note 5: The amount agreed in the board resolution shall be listed. But based on the subparagraph 8, article 12 of Guideline for Capital Loan and Endorsement of the Public Companies, the board of members will authorize the chairman of the board for execution, the amount refers to the amount carried out by the Chairman of the Board.

Note 6: The actual used amount within the endorsed guaranteed balance range used by the endorsed company shall be listed.

Note 7: The listed parent company endorsement of the subsidiary company, the subsidiary company endorsement of the listed parent company or the endorsement from the Mainland China area shall list as Y category.

LEALEA ENTERPRISE CORPORATION LIMITED AND SUBSIDIARIES

TABLE 3

MARKETABLE SECURITIES HELD

FOR THE YEAR ENDED DECEMBER 31, 2025

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

Held Company Name	Marketable Securities Type and Name (Note 1)	Relationship with the Company (Note 2)	Financial Statement Account	December 31, 2024
				Shares	Carrying Value (Note 3)	Percentage of Ownership (%)	Fair Value
LEALEA Enterprise Co., Ltd.	Publicly traded stocks
	Trade-Van Information Service Corp.	None	Financial assets at fair value through profits and losses—Current	427,675	$ 40,629	0.29	$ 40,629
	KGI Financial Holding Co., Ltd.	〃	〃	1,229,960	21,217	0.01	21,217
	Far EasTone Telecommunications Co., Ltd.	〃	〃	306,219	27,039	0.01	27,039
	Information Technology Total Services Co., Ltd.	〃	〃	33,750	1,644	0.12	1,644
	Domestic Mutual Funds
	Franklin Templeton Sinoam Money Market	None	〃	-	30,203	-	30,203
	Fubon Money Market Fund	〃	〃	-	96,928	-	96,928
	Taishin 1699 Money Market Fund	〃	〃	-	201,409	-	201,409
	Fubon Chi-Hsiang Money Market Fund	〃	〃	-	78,517	-	78,517
	CTBC Hwa-win Money Market Fund	〃	〃	-	64,410	-	64,410
	Stocks
	The Techgains Pan-Pacific Corp.	None	Financial assets at fair value through profits and losses—Noncurrent	150,000	373	0.26	373
Book4U Co., Ltd.	〃	〃	6,250	-	0.12	-
LI ZAN Investment Co., Ltd.	Listed stocks
	LEALEA Enterprise Co., Ltd.	Parent Company of LI ZAN Investment Co., Ltd.	Financial assets at fair value through Other comprehensive gains and losses — Noncurrent	6,345,430	38,199	0.64	38,199
	Far EasTone Telecommunications Co., Ltd.	None	Financial assets at fair value through profits and losses—Current	6,124	541	-	541
	Domestic Mutual Funds
	Fubon Chi-Hsiang Money Market Fund	〃	〃	-	3,002	-	3,002
	Taishin 1699 Money Market Fund	〃	〃	-	11,001	-	11,001
LI HAO Investment Co., Ltd.	Listed stocks
	LEALEA Enterprise Co., Ltd.	Parent Company of LI HAO Investment Co., Ltd.	Financial assets at fair value through Other comprehensive gains and losses — Noncurrent	4,859,559	29,255	0.49	29,255
	Far EasTone Telecommunications Co., Ltd.	None	Financial assets at fair value through profits and losses—Current	6,124	541	-	541
	Wei Chuan Foods Corp.	〃	〃	25,000	364	-	364

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Held Company Name	Marketable Securities Type and Name (Note 1)	Relationship with the Company (Note 2)	Financial Statement Account	December 31, 2024
				Shares	Carrying Value (Note 3)	Percentage of Ownership (%)	Fair Value
LI HAO Investment Co., Ltd.	Listed stocks
	Dynacolor, Inc.	None	Financial assets at fair value through profits and losses—Current	40,000	$ 1,610	0.04	$ 1,610
	TS Financial Holding Co., Ltd	n	n	672,000	13,709	-	13,709
	Domestic Mutual Funds
	Taishin 1699 Money Market Fund	None	Financial assets at fair value through profits and losses—Current	-	151,672	-	151,672
	Franklin Templeton Sinoam Money Market	n	n	-	45,087	-	45,087
	Overseas bonds
LEA JIE Energy Co., Ltd.	TSMC Arizona Bonds	n	Financial assets at fair value through profits and losses—Noncurrent	-	16,571	-	16,571
	Domestic Mutual Funds
	Franklin Templeton Sinoam Money Market	n	Financial assets at fair value through profits and losses—Current	-	90,253	-	90,253

Note 1: The securities mentioned in this table refer to stocks, bonds, beneficiary certificates, and securities derived from such items, that are within the scope of IFRS 9 "Financial Instruments".
Note 2: The securities issuer who is not classified as related party does not need to fill in the column.
Note 3: If measured by fair value, please fill in the "carrying value" column with the carrying balance that has adjusted the value in accordance with fair value evaluation and deducted allowance losses; if it is not measured by fair value, please fill in the "carrying value" column with the carrying balance of the amortized cost after deducting the allowance impairment.
Note 4: If the listed securities are restricted due to the provision of guarantees, pledged loans, or other agreed-upon, the note column should indicate the number of guarantees or pledged shares, the amount of guarantees or pledges, and restrictions on use.
Note 5: For information about the equity investments in subsidiaries, associates, and joint ventures, please refer to attached "Table 7".

LEALEA ENTERPRISE CORPORATION LIMITED AND SUBSIDIARIES

TABLE 4

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES OF AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL

FOR THE YEAR 2025

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

Company Name	Related Party	Nature of Relationships	Transaction Details				Abnormal Transaction (Note 1)		Notes/Accounts Payable or Receivable
			Purchase/ Sales	Amount	% to Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% to Total
LEALEA Enterprise Co., Ltd.	LI PENG Enterprise Co., Ltd.	The investee of the Company accounted for under the equity method	Sales	($ 845,035)	( 18%)	1 month commercial promissory note	N/A	N/A	Notes and Accounts Receivables $ 54,848	22%
n	n	n	Purchase	309,863	12%	n	n	n	Notes and Accounts Payables ( 20,947)	( 24%)
n	PT. INDONESIA LIBOLON FIBER SYSTEM	Subsidiaries of the Company	Sales	( 160,588)	( 3%)	n	n	n	Notes and Accounts Receivables 20,149	8%
LEA JIE Energy Co., Ltd.	LI PENG Enterprise Co., Ltd.	The investee of the company's parent company accounted for under the equity method	Sales	( 200,912)	( 18%)	n	n	n	Notes and Accounts Receivables 9,579	21%
PT. INDONESIA LIBOLON FIBER SYSTEM	LIBOLON (Shanghai) International Trading Co., Ltd.	Substantive related party	Purchase	150,942	37%	n	n	n	Notes and Accounts Payables ( 38,918)	( 48%)
n	LI PENG Enterprise Co., Ltd.	The investee of the company's parent company accounted for under the equity method	Sales	( 100,594)	( 9%)	n	n	n	Notes and Accounts Receivables -	-
n	LEALEA Enterprise Co., Ltd.	Parent company	Purchase	160,982	39%	n	n	n	Notes and Accounts Payables ( 20,150)	( 25%)
LI LING Film Co., Ltd.	LI PENG Enterprise Co., Ltd.	The investee of the company's parent company accounted for under the equity method	Purchase	195,125	97%	n	n	n	Notes and Accounts Payables ( 26,976)	( 98%)

Note 1: If the related party's trade terms are different from the general trade terms, the differences and reasons of abnormal transaction should be described in the "unit price" and "payment terms" columns.
Note 2: If there is unearned receipts, prepayment, the reason, contractual terms, amount, and differences with general transaction should be stated in the note column.
Note 3: The amount of paid-in capital refers to the amount of paid-in capital of the parent company. If the issuer's shares have no denomination or the denomination per share is not NT$10, the transaction amount requirement of 20% of the paid-in capital shall be calculated based on the 10% equity attributable to the owner of the parent company on the balance sheet.

LEALEA ENTERPRISE CORPORATION LIMITED AND SUBSIDIARIES

TABLE 5

THE RECEIVABLES FROM RELATED PARTIES AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL

FOR THE YEAR 2025

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

Company Name	Related Party	Nature of Relationships	Ending balance of receivables from related parties (Note 1)	Turnover	Overdue receivables from related parties		Recovered amount of the receivables from related parties after the period	Provision for allowance of bad debt
					Amount	Way of Processing
LEALEA Enterprise Co., Ltd.	PT. INDONESIA LIBOLON FIBER SYSTEM	Subsidiary	Advance loans to related parties $ 716,698	N/A	$ -	-	$ 56,291	$ -
LEALEA Enterprise Co., Ltd.	LI LING Film Co., Ltd.	Subsidiary	Long-term receivables - current and non-current 406,540	N/A	-	-	2,328	-
LEALEA Enterprise Co., Ltd.	BLOOMING Development Co., Ltd.	Substantive related party	Advance loans to related parties 450,000	N/A	-	-	-	-
LEALEA Enterprise Co., Ltd.	Eton Petrochemical Co., Ltd.	Substantive related party	Advance loans to related parties 396,018	N/A	-	-	396,018	-

Note 1: Please fill in the blank according to account receivables from related parties, receivable notes, other receivables, etc.
Note 2: Paid-in capital refers to the paid-in capital of the parent company. Where the issuer's shares have no par value or the par value per share is not NT $10, the transaction amount of 20% of the paid in capital shall be calculated by 10% of the equity attributable to the owner of the parent company in the balance sheet.

LEALEA ENTERPRISE CORPORATION LIMITED AND SUBSIDIARIES
TABLE 6
INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS
FOR THE YEAR 2025
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

No. (Note 1)	Company Name	Related Party	Nature of Relationships (Note 2)	Transaction Details
				Account Name	Amount	Trade Terms	% to Total (Note 3)
0	LEALEA Enterprise Co., Ltd.	LI ZAN Investment Co., Ltd.	Parent Company to Subsidiary	Interest Payables	$ 10	General trade terms	-
0	LEALEA Enterprise Co., Ltd.	LI ZAN Investment Co., Ltd.	Parent Company to Subsidiary	Rental Income	10	General trade terms	-
0	LEALEA Enterprise Co., Ltd.	LI ZAN Investment Co., Ltd.	Parent Company to Subsidiary	Interest Expense	505	General trade terms	-
0	LEALEA Enterprise Co., Ltd.	LI HAO Investment Co., Ltd.	Parent Company to Subsidiary	Rental Income	10	General trade terms	-
0	LEALEA Enterprise Co., Ltd.	LI HAO Investment Co., Ltd.	Parent Company to Subsidiary	Interest Expense	1,069	General trade terms	-
0	LEALEA Enterprise Co., Ltd.	LI HAO Investment Co., Ltd.	Parent Company to Subsidiary	Interest Payables	27	General trade terms	-
0	LEALEA Enterprise Co., Ltd.	LIBOLON Enterprise Co., Ltd.	Parent Company to Subsidiary	Rental Income	118	General trade terms	-
0	LEALEA Enterprise Co., Ltd.	LIBOLON Enterprise Co., Ltd.	Parent Company to Subsidiary	Net revenue from sale of goods	11	General trade terms	-
0	LEALEA Enterprise Co., Ltd.	LIBOLON Enterprise Co., Ltd.	Parent Company to Subsidiary	Notes/Accounts Receivable	1	General trade terms	-
0	LEALEA Enterprise Co., Ltd.	LIBOLON Enterprise Co., Ltd.	Parent Company to Subsidiary	Other Accounts Receivable	8	General trade terms	-
0	LEALEA Enterprise Co., Ltd.	LEA JIE Energy Co., Ltd.	Parent Company to Subsidiary	Rental Income	4,100	General trade terms	-
0	LEALEA Enterprise Co., Ltd.	LEA JIE Energy Co., Ltd.	Parent Company to Subsidiary	Service Fee	762	General trade terms	-
0	LEALEA Enterprise Co., Ltd.	LEA JIE Energy Co., Ltd.	Parent Company to Subsidiary	Interest Income	249	General trade terms	-
0	LEALEA Enterprise Co., Ltd.	LEA JIE Energy Co., Ltd.	Parent Company to Subsidiary	Other Accounts Receivable	10	General trade terms	-
0	LEALEA Enterprise Co., Ltd.	PT.INDONESIA LIBOLON FIBER SYSTEM	Parent Company to Subsidiary	Interest Receivable	1,128	General trade terms	-
0	LEALEA Enterprise Co., Ltd.	PT.INDONESIA LIBOLON FIBER SYSTEM	Parent Company to Subsidiary	Net revenue from sale of goods	160,588	General trade terms	2
0	LEALEA Enterprise Co., Ltd.	PT.INDONESIA LIBOLON FIBER SYSTEM	Parent Company to Subsidiary	Other Income	49	General trade terms	-
0	LEALEA Enterprise Co., Ltd.	PT.INDONESIA LIBOLON FIBER SYSTEM	Parent Company to Subsidiary	Notes/Accounts Receivable	20,149	General trade terms	-
0	LEALEA Enterprise Co., Ltd.	PT.INDONESIA LIBOLON FIBER SYSTEM	Parent Company to Subsidiary	Interest Income	18,899	General trade terms	-
0	LEALEA Enterprise Co., Ltd.	PT.INDONESIA LIBOLON FIBER SYSTEM	Parent Company to Subsidiary	Receivable repayment of advance loans to related parties	716,698	General trade terms	4
0	LEALEA Enterprise Co., Ltd.	LI LING Film Co., Ltd.	Parent Company to Subsidiary	Interest Receivable	49	General trade terms	-
0	LEALEA Enterprise Co., Ltd.	LI LING Film Co., Ltd.	Parent Company to Subsidiary	Notes/Accounts Receivable	2,181	General trade terms	-
0	LEALEA Enterprise Co., Ltd.	LI LING Film Co., Ltd.	Parent Company to Subsidiary	Long-term receivables	397,168	General trade terms	2
0	LEALEA Enterprise Co., Ltd.	LI LING Film Co., Ltd.	Parent Company to Subsidiary	Other Accounts Receivable	10,087	General trade terms	-
0	LEALEA Enterprise Co., Ltd.	LI LING Film Co., Ltd.	Parent Company to Subsidiary	Net revenue from sale of goods	28,186	General trade terms	-
0	LEALEA Enterprise Co., Ltd.	LI LING Film Co., Ltd.	Parent Company to Subsidiary	Rental Income	5,606	General trade terms	-
0	LEALEA Enterprise Co., Ltd.	LI LING Film Co., Ltd.	Parent Company to Subsidiary	Interest Income	7,402	General trade terms	-
0	LEALEA Enterprise Co., Ltd.	LIBOLON Energy Co., Ltd.	Parent Company to Subsidiary	Rental Income	3,930	General trade terms	-

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No. (Note 1)	Company Name	Related Party	Nature of Relationships (Note 2)	Transaction Details
				Account Name	Amount	Trade Terms	% to Total (Note 3)
1	LEA JIE Energy Co., Ltd.	LEALEA Enterprise Co., Ltd.	Subsidiary to Parent Company	Net revenue from sale of goods	$ 22,720	General trade terms	-
1	LEA JIE Energy Co., Ltd.	LEALEA Enterprise Co., Ltd.	Subsidiary to Parent Company	Labor income	815	General trade terms	-
1	LEA JIE Energy Co., Ltd.	LIBOLON Enterprise Co., Ltd.	Subsidiary to Subsidiary	Interest Income	368	General trade terms	-
1	LEA JIE Energy Co., Ltd.	LIBOLON Enterprise Co., Ltd.	Subsidiary to Subsidiary	Interest Receivable	31	General trade terms	-
1	LEA JIE Energy Co., Ltd.	LIBOLON Enterprise Co., Ltd.	Subsidiary to Subsidiary	Receivable repayment of advance loans to related parties	17,000	General trade terms	-
2	LI HAO Investment Co., Ltd.	PT.INDONESIA LIBOLON FIBER SYSTEM	Subsidiary to Subsidiary	Interest Receivable	130	General trade terms	-
2	LI HAO Investment Co., Ltd.	PT.INDONESIA LIBOLON FIBER SYSTEM	Subsidiary to Subsidiary	Interest Income	1,230	General trade terms	-
2	LI HAO Investment Co., Ltd.	PT.INDONESIA LIBOLON FIBER SYSTEM	Subsidiary to Subsidiary	Receivable repayment of advance loans to related parties	59,403	General trade terms	-
2	LI HAO Investment Co., Ltd.	LIBOLON Energy Co., Ltd.	Subsidiary to Subsidiary	Interest Income	503	General trade terms	-
2	LI HAO Investment Co., Ltd.	LIBOLON Energy Co., Ltd.	Subsidiary to Subsidiary	Interest Receivable	45	General trade terms	-
2	LI HAO Investment Co., Ltd.	LIBOLON Energy Co., Ltd.	Subsidiary to Subsidiary	Receivable repayment of advance loans to related parties	17,000	General trade terms	-
2	LI HAO Investment Co., Ltd.	LI LING Film Co., Ltd.	Subsidiary to Subsidiary	Interest Income	928	General trade terms	-
2	LI HAO Investment Co., Ltd.	LI LING Film Co., Ltd.	Subsidiary to Subsidiary	Interest Receivable	56	General trade terms	-
3	LIBOLON Enterprise Co., Ltd.	LEALEA Enterprise Co., Ltd.	Subsidiary to Parent Company	Net revenue from sale of goods	19	General trade terms	-
4	LI ZAN Investment Co., Ltd.	LI LING Film Co., Ltd.	Subsidiary to Subsidiary	Interest Income	23	General trade terms	-
4	LI ZAN Investment Co., Ltd.	LI LING Film Co., Ltd.	Subsidiary to Subsidiary	Interest Receivable	23	General trade terms	-
4	LI ZAN Investment Co., Ltd.	LI LING Film Co., Ltd.	Subsidiary to Subsidiary	Receivable repayment of advance loans to related parties	9,000	General trade terms	-
5	LIBOLON Energy Co., Ltd.	LEALEA Enterprise Co., Ltd.	Subsidiary to Parent Company	Accounts receivable	129	General trade terms	-
5	LIBOLON Energy Co., Ltd.	LEALEA Enterprise Co., Ltd.	Subsidiary to Parent Company	Labor income	425	General trade terms	-

Note 1: The business operations information between parent company and subsidiaries shall be indicated in column number, number filled in as follows:
(1) The Parent company is coded "0".
(2) The subsidiaries are numbered sequentially starting from Arabic numeral "1" according to company type.
Note 2: The relationships are categorized into the following three types. Please specify the type. The same transaction between parent and subsidiary or between subsidiaries shall not be disclosed repetitively. For example, for transactions between the Parent company and its subsidiaries, if the parent company discloses the information, the subsidiaries are exempted from doing so. The same applies to transactions between subsidiaries where only one subsidiary needs to disclose the same transaction.
(1) The parent company to subsidiary.
(2) Subsidiary to the parent company.
(3) Subsidiaries to subsidiaries.
Note 3: Regarding the percentage of transaction amount to consolidated net revenue or total assets, if it is an asset-liability item, it is computed based on the ending balance to consolidated total assets; if it is a profit and loss item, it is computed based on interim accumulated amount to consolidated total revenue.
Note 4: Whether to describe the important transactions in this table is determined by the company based on the principle of materiality.

LEALEA ENTERPRISE CORPORATION LIMITED AND SUBSIDIARIES

TABLE 7

NAMES, LOCATIONS, AND RELATED INFORMATION OF INVESTEES OVER WHICH THE COMPANY EXERCISES SIGNIFICANT INFLUENCE

FOR THE YEAR ENDED DECEMBER 31, 2025

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

Investor Company	Investor Company (Note 1, 2)	Location	Main Businesses and Products	Original Investment Amount		Balance as of December 31, 2024			Profit and loss for current period of the investor company (Note 2(2))	Profit and loss recognized for current period (Note 2(3))	Note
				December 31, 2025	December 31, 2024	Shares	Percentage of Ownership	Carrying Value
LEALEA Enterprise Co., Ltd.	LI HAO Investment Co., Ltd.	11F., No. 162, Songjiang Rd., Taipei City 104, Taiwan	Investments of various production businesses, securities investment companies, banks, etc.	$ 416,616	$ 416,616	40,356,000	53.38	$ 428,802	($ 42,214)	($ 22,534)
	LI ZAN Investment Co., Ltd.	"	"	359,877	359,877	24,460,000	53.17	234,590	( 49,529)	( 26,336)
	LI XING Investment Co., Ltd.	"	"	376,000	376,000	37,600,000	47.00	329,908	9,069	4,263
	HONG XING Investment Co., Ltd.	"	"	364,595	364,595	23,304,000	46.98	238,312	1,094	514
	LI MAO Investment Co., Ltd.	"	"	363,629	363,629	35,244,000	46.62	307,619	6,742	3,143
	LEALEA Technology Co., Ltd.	"	Information software and data processing services	74,031	74,031	21,006,169	28.51	351,239	290,541	82,842
	LIBOLON Enterprise Co., Ltd.	6F., No. 162, Songjiang Rd., Taipei City 104, Taiwan	Sporting and recreation goods wholesaling and retailing business	50,000	50,000	5,000,000	100.00	15,355	1,875	1,875
	FU LI Express Co., Ltd.	No. 122, Zili 2nd Street, Wuqi District, Taichung City, Taiwan	Container trucking carrier	35,000	35,000	3,500,000	25.00	44,667	4,065	1,016
	LI PENG Enterprise Co., Ltd.	6F., No. 162, Songjiang Rd., Taipei City 104, Taiwan	Manufacturing of weaving, dyeing and finishing, processing of artificial fiber and woven fabrics	1,433,043	1,329,859	175,348,853	19.27	1,551,939	( 891,970)	( 169,933)
	Rich Development Co., Ltd.	8F., No.99, Jilin Road, Taipei City, Taiwan	Appointment of construction enterprises for commercial building construction, rent and sales of public housing, etc.	461,253	461,253	53,395,090	6.97	919,832	118,299	8,243
	LEA JIE Energy Co., Ltd.	4F., No. 162, Songjiang Rd., Taipei City 104, Taiwan	Coal wholesaling and retailing business	210,000	210,000	21,000,000	70.00	230,159	9,918	6,985
	LI LING Film Co., Ltd.	11F., No. 162, Songjiang Rd., Taipei City 104, Taiwan	Nylon film manufacturing and trading business	424,459	284,643	41,888,517	69.82	75,755	( 164,249)	( 108,803)
	PT. INDONESIA LIBOLON FIBER SYSTEM	Lantai 1 JI, Cideng Barat No. 15, RT.011/BW.001 Kel. Dari Polo, Kec. Gambir, DKZ Jakarta	Manufacturing and sales of weaving, dyeing and finishing, processing of artificial fiber fabrics	2,100,950	2,100,950	16,170,000	70.00	1,162,360	( 92,052)	( 64,506)
	REMONDIS LEALEA Enterprise Co., Ltd.	No. 47, Gongqu Rd., Fangyuan Township, Changhua County 528011, Taiwan	Waste Disposal	-	144,000	-	-	-	( 8,529)	( 4,094)
LIBOLON Energy Co., Ltd.	No. 38, Gongye Road, Houliao Village, Fangyuan Township, Changhua County, Taiwan	Power generation	63,672	-	6,367,200	60.00	70,561	10,818	7,032
LI HAO Investment Co., Ltd.	LI PENG Enterprise Co., Ltd.	6F., No. 162, Songjiang Rd., Taipei City 104, Taiwan	Manufacturing of weaving, dyeing and finishing, processing of artificial fiber and woven fabrics	469,876	469,876	44,322,968	4.87	393,813	( 891,970)	-
	LI LING Film Co., Ltd.	11F., No. 162, Songjiang Rd., Taipei City 104, Taiwan	Nylon film manufacturing and trading business	95,010	95,010	950,100	1.58	1,677	( 164,249)	-
LI ZAN Investment Co., Ltd.	LI PENG Enterprise Co., Ltd.	6F., No. 162, Songjiang Rd., Taipei City 104, Taiwan	Manufacturing of weaving, dyeing and finishing, processing of artificial fiber and woven fabrics	451,523	451,523	41,727,763	4.59	371,171	( 891,970)	-	13,076,000 shares pledged as collateral for the issuance of short-term notes
	LI LING Film Co., Ltd.	11F., No. 162, Songjiang Rd., Taipei City 104, Taiwan	Nylon film manufacturing and trading business	105,000	105,000	1,050,000	1.75	1,853	( 164,249)	-
LEA JIE Energy Co., Ltd.	VIRTUE ELITE Ltd.	Sanoa	Coal wholesaling and retailing business	5,701	5,701	179,300	99.61	363	3	-

Note 1: If a public company has a foreign holding company that uses consolidated statements as the main financial statements in accordance with local laws and regulations, the disclosure of information about the foreign investor company may only disclose the relevant information of the holding company.
Note 2: If it is not in the situation described in Note 1, fill in according to the following regulations:
(1) For "Investor Company", "Location", "Main Businesses and Products", "Original Investment Amount" and "Balance as of December 31, 2021" columns, the information should be filled out in order in accordance with the investment circumstances of the public company or the investment circumstances of each directly or indirectly controlled investor company. The relationship between each investor company and the public company should also be indicated in the note column, such as subsidiary or second-tier subsidiary.
(2) The "Profit and loss for current period of the investor company" column should be filled in with the current profit and loss amount of each investor company.
(3) The "Profit and loss recognized for current period" column should only be filled in the amount of profits and losses of the public Company's direct investment in subsidiaries and the amount of profit and loss of each investor company measured by using the equity method. The rest is not required. When filling in the "Profit and loss recognized for current period" column, we should confirm that the current profit and loss of each subsidiary already includes the investment profit and loss of its investees required to be recognized by laws.

AI assistant

LEALEA — Audit Report / Information 2025

51807_rns_2026-05-20_dfb2d6aa-95d2-4f42-96c2-dbe78acd8e3c.pdf

REPRESENTATION LETTER

INDEPENDENT AUDITORS' REPORT

Opinion

Basis for Opinion

Key Audit Matters

The authenticity of sales revenue from specific customers

Other Matter

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

LEALEA ENTERPRISE CORPORATION LIMITED AMD SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

LEALEA ENTERPRISE CORPORATION LIMITED AMD SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGE IN EQUITY

1. GENERAL

2. THE AUTHORIZATION OF FINANCIAL STATEMENTS

3. APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Statement of Compliance

b. Basis of Preparation

m. Impairment of Assets related to Property, Plant and Equipment, Right-of-Use Assets, Intangible Assets (except Goodwill) and Contract Costs

n. Financial Instruments

(1.3) Derecognition of financial assets

(2) Financial liabilities

(2.1) Subsequent assessment

(2.2) Derecognition of financial liabilities

Account Receivable

9. INVENTORIES

10. Financial assets measured at fair value through other comprehensive profits and losses

11. Credit risk management of debt instrument investment

12. INVESTMENTS in SUBSIDIARIES

13. INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD

15. LEASE ARRANGEMENTS

17. Goodwill

18. BORROWINGS

19. RETIREMENT BENEFIT PLANS

(a) Defined contribution plans

(b) Defined benefit plans

20. EQUITY

(a) Capital

Common stocks

(b) Capital surplus

(c) Retained earnings and dividend policy

21. OPERATING REVENUE

22. INCOME FROM CONTINUING OPERATIONS

(a) Interest income

(b) Other income

(c) Other gains and losses

23. INCOME TAX OF CONTINUING OPERATION

25. Business Combinations

27. Transactions involving non-controlling interests

28. CAPITAL RISK MANAGEMENT

29. FINANCIAL INSTRUMENTS

30. RELATED PARTY TRANSACTIONS

33. EXCHANGE RATE INFORMATION OF SIGNIFICANT FOREIGN-CURRENCY FINANCIAL ASSETS AND LIABILITIES

34. ADDITIONAL DISCLOSURES

35. OPERATING SEGMENTS INFORMATION

(a) Operating segment revenue and operating results

LEALEA ENTERPRISE CORPORATION LIMITED

TABLE 2

LEALEA ENTERPRISE CORPORATION LIMITED AND SUBSIDIARIES

LEALEA ENTERPRISE CORPORATION LIMITED AND SUBSIDIARIES

LEALEA ENTERPRISE CORPORATION LIMITED AND SUBSIDIARIES

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LEALEA Audit Report / Information 2025