Stock Code 1444

LEALEA ENTERPRISE CO., LTD.
Parent Company Only 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. Independent Auditors’ Report		3~6	-
4. Balance Sheets		7	-
5. Statements of Comprehensive Income		8~9	-
6. Statements of Changes In Equity		10	-
7. Statements of Cash Flows		11~13	-
8. Notes to Parent Company Only Financial Statements
(1)	Company History	14	1
(2)	The Authorization of Financial Statements	14	2
(3)	Application of New And Revised International Financial Reporting Standards	14~16	3
(4)	Summary of Significant Accounting Policies	16~32	4
(5)	Critical Accounting Judgments and Key Sources of Estimation Uncertainty	32~33	5
(6)	Notes to Significant Accounting Items	33~56	6~20
(7)	Related Parties Transactions	62~69	23
(8)	Pledged Assets	69~70	24
(9)	Significant Contingent Liabilities and Unrecognized Contract Commitments	70~71	25
(10)	Major Disaster Loss	-	-
(11)	Significant Subsequent Events	-	-
(12)	Other	56~61、70~71	21~22、26
(13)	Notes for Disclosed Matters
	1. Related Information on Significant Transaction Matters	71	27
	2. Related Information on Reinvestment Businesses	71	27
	3. Information on Investment in China	71	27
(14)	Department Information	72	28
9. The Contents of Statements of Major Accounting Items		79~106	-

INDEPENDENT AUDITORS' REPORT

The Board of Directors and Shareholders
LEALEA ENTERPRISE CO., LTD.:

Opinion

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

Per opinions of our accountants, based on our audit findings and the audit reports of other accountants (please refer to the Other Matters section), the parent company only financial statements mentioned in paragraph one have been prepared in accordance with Regulations Governing the Preparation of Financial Reports by Securities Issuers in all material aspects, and can be reasonably assessed to present the parent company only financial conditions of the Company as of December 31, 2025 and 2024, as well as the parent company only financial performance and parent company only 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 Parent Company Only Financial Statements section of our report. We are independent of the Company in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China and we have fulfilled our other ethical responsibilities in accordance with these requirements. Based on the audit results of this accountant and the audit reports of other accountants, 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 parent company only financial statements for the year ended December 31, 2025. These matters were addressed in the context of our audit of the parent company only

financial statements as a whole, and in forming our opinion thereon, and do not provide a separate opinion on these matters.

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

Authenticity of specific customer sales revenue

The operating income of LEALEA ENTERPRISE Co., Ltd. in 2025 decreased compared with that in 2024, while the gross profit margin of some polyester processed yarn products has increased compared to previous years, which differs from industry expectations. Given that the occurrence of sales revenue is critical to revenue recognition and fair presentation. To be fair, this accountant has listed whether the sales revenue of specific customers of ester granules for growing polyester solid state is actually occurred as a key audit matter in 2025.

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 individual financial reports of the years ended December 31, in 2025 were not reviewed by this accountant, but were reviewed by other accountants. Therefore, in the opinions expressed by our accountants on the above-mentioned individual financial reports, the amounts listed in the financial statements of some 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 above-mentioned investee companies' investment amounts using the equity method were NT$1,100,128 thousand and NT$1,092,204 thousand, respectively, accounting for 6.7% and 6.26% of the total assets, respectively. From January 1 to December 31, 2025 and 2024, the above-mentioned investee companies' share of the comprehensive profit of associated enterprises recognized using the equity method was NT$4,974 thousand and NT$11,208 thousand, respectively, accounting for (0.41%) and 6.54% of the comprehensive profit and loss of the respective years.

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

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

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

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

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

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

As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identified and evaluated the risk of material misstatement due to fraud or error of the parent company only 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 continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the parent company only financial
5 -

statements represent the underlying transactions and events in a manner that achieves fair presentation.

Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

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

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

In the communications between us and the Company's governing body, we have determined the key audit items from 2025 parent company only financial statements. 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 CO., LTD.
PARENT COMPANY ONLY 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)	$ 327,973	2	$ 492,121	3
1110	Financial assets at fair value through profit or loss—Current (Note 4, 7)	561,996	3	94,245	-
1150	Notes receivable, net (Note 4, 8)	21,172	-	49,531	-
1170	Accounts receivable, net (Note 4, 8)	154,212	1	270,294	2
1180	Accounts receivable from related parties, net (Note 4,8, 22)	77,180	1	153,180	1
1210	Advance loans to related parties (Note 22)	1,562,716	10	1,346,440	8
1310	Inventories – Textile business (Note 4, 9)	1,001,348	6	1,490,667	8
1320	Inventories - real estate development (Note 4, 9)	1,567,177	10	1,123,926	6
1410	Prepayments	45,644	-	134,173	1
1476	Other financial assets—Current(Note 6)	24,333	-	148,655	1
11XX	Total current assets	5,343,751	33	5,303,232	30
NONCURRENT ASSETS
1510	Financial assets at fair value through profit or loss—Noncurrent (Note 4, 7)	373	-	373	-
1550	Investments accounted for using equity method (Note 4, 10)	5,961,098	36	6,663,835	38
1600	Property, plant and equipment (Note 4, 11)	4,147,937	25	4,642,043	27
1755	Right-of-use assets (Note 4, 12)	62,882	-	67	-
1760	Investment property (Note 4, 13)	291,116	2	293,581	2
1780	Other intangible assets	1,050	-	2,352	-
1840	Deferred income tax assets (Note 4, 18)	169,666	1	83,115	1
1915	Prepayments for business facilities	40,668	-	31,844	-
1990	Other noncurrent assets—Others(Note 11, 22)	409,275	3	416,137	2
15XX	Total noncurrent assets	11,084,065	67	12,133,347	70
1XXX	TOTAL ASSETS	$ 16,427,816	100	$ 17,436,579	100
LIBELITIES AND EQUITY
CURRENT LIABILITIES
2100	Short-term loans (Note 14)	$ 3,955,000	24	$ 3,607,000	21
2150	Notes payable	6	-	17,505	-
2160	Notes payables to related parties (Note 22)	463	-	971	-
2170	Accounts payable	65,387	-	232,958	1
2180	Accounts payables to related parties (Note 22)	21,287	-	39,743	-
2200	Other payables	308,119	2	368,174	2
2220	Advance loans to related parties (Note 22)	-	-	313,000	2
2250	Current provisions	1,495	-	-	-
2280	Lease liabilities—Current (Note 4, 12)	1,904	-	13	-
2320	Long-term liabilities—Current portion (Note 4,14)	316,367	2	315,000	2
2399	Other current liabilities	79,095	1	97,813	1
21XX	Total current liabilities	4,749,123	29	4,992,177	29
NONCURRENT LIABILITIES
2540	Long-term borrowings (Note 4,14)	1,765,133	11	1,327,500	8
2573	Deferred income tax liabilities—Noncurrent (Note 4, 19)	101,311	1	102,118	-
2580	Lease liabilities—Noncurrent (Note 4, 12)	61,347	-	54	-
2640	Net defined liabilities—Noncurrent (Note 4, 15)	158,260	1	177,045	1
2645	Guarantee deposits	5,531	-	5,532	-
25XX	Total noncurrent liabilities	2,091,582	13	1,612,249	9
2XXX	Total liabilities	6,840,705	42	6,604,426	38
EQUITY (NOTE 16)
Capital stock
3110	Capital—Common stock	9,955,950	60	9,955,950	57
3200	Capital surplus	119,259	1	114,773	-
Retained earnings
3310	Appropriated as legal capital reserve	638,207	4	619,739	4
3320	Appropriated as special capital reserve	95,444	-	40,464	-
3350	Accumulated deficit / Unappropriated retained earnings	( 711,450)	( 4)	184,677	1
3300	Total retained earnings	22,201	-	844,880	5
3400	Others	( 481,829 )	( 3)	( 54,980 )	-
3500	Treasury stock	( 28,470 )	-	( 28,470 )	-
3XXX	Total equity	9,587,111	58	10,832,153	62
TOTAL LIABILITIES AND EQUITY		$ 16,427,816	100	$ 17,436,579	100

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

LEALEA ENTERPRISE CO., LTD.
PARENT COMPANY ONLY 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 4,22)	$ 4,609,591	100	$ 6,195,330	100
5000	COST OF REVENUE (Note 9,22)	4,576,075	99	6,130,484	99
5900	GROSS (LOSS) PROFIT	33,516	1	64,846	1
5910	Unrealized gain (loss) on transactions with subsidiaries and associates	5,923	-	1,683	-
5950	REALIZED GROSS PROFIT	39,439	1	66,529	1
	OPERATING EXPENSE (Note 22)
6100	Marketing expenses	139,104	3	236,335	4
6200	General and administrative	116,214	3	136,577	2
6300	Research and development	41,384	1	44,819	1
6450	Impairment loss (reversal of impairment loss) determined in accordance with IFRS 9	( 1,184)	-	311	-
6000	Total operating expenses	295,518	7	418,042	7
6900	OPERATING INCOME	( 256,079)	( 6)	( 351,513)	( 6)
	NON-OPERATING INCOME AND EXPENSE (Note 17, 22)
7100	Interest income	59,070	1	75,169	1
7140	Gain on bargain purchase — Affiliated associations acquisition	62,733	1	29,027	1
7010	Other income	166,322	4	181,806	3
7020	Other gains and losses	( 518,882)	( 11)	433,785	7
7050	Finance costs	( 86,105)	( 2)	( 78,391)	( 1)
7070	Share of profit (loss) of associates and joint ventures accounted for using equity method	( 280,293)	( 6)	23,729	-
7000	Total non-operating income and expenses	( 597,155)	( 13)	665,125	11
		2025		2024

Code		Amount	%	Amount	%
7900	INCOME BEFORE INCOME TAX	($ 853,234)	( 19)	$ 313,612	5
7950	INCOME TAX (EXPENSE)
PROFIT (Note 18)	80,860	2	( 41,070)	-
8200	NET INCOME	( 772,374)	( 17)	272,542	5
	OTHER COMPREHENSIVE INCOME
(LOSS)
8310	Items that will not be reclassified
subsequently to profit or loss
8311	Remeasurement of defined
benefit obligation	1,978	-	20,561	-
8330	Share of other comprehensive
loss of associates and joint
ventures accounted for using
equity method	( 330,156)	( 7)	( 150,841)	( 2)
8360	Items that may be reclassified
subsequently to profit or loss
8361	Exchange differences arising on
translation of foreign
operations	( 109,280)	( 2)	29,041	-
8300	Other comprehensive loss for
the year, net of income tax	( 437,458)	( 9)	( 101,239)	( 2)
8500	TOTAL COMPREHENSIVE INCOME
FOR THE YEAR	($ 1,209,832)	( 26)	$ 171,303	3
	EARNINGS (LOSS) PER SHARE
(Note 19) FROM CONTINUING
OPERATIONS
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 parent company only financial statements.

LEALEA ENTERPRISE CO., LTD.
PARENT COMPANY ONLY STATEMENTS OF CHANGE IN EQUITY
For The Years Ended December 31, 2025 and 2024
(In Thousands of New Taiwan Dollars)

C o d e	Capital Stock-Common Stock		Capital Surplus	Retained Earning			Other Equity		Treasury Stock	Total Equity
	Shares (In Thousands)	Amount		Legal Capital Reserve	Special Capital Reserve	Unappropriated Earnings (Unappropriated deficit)	Foreign Currency Translation Reserve	Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Comprehensive Income
A1	BALANCE JANUARY 1, 2024	995,595	$ 9,955,950	$ 97,220	$ 619,739	$ 60,136	($ 139,290)	($ 138,456)	$ 216,468	($ 28,470)
B3	2023 Appropriation of earnings
Legal special capital reserve	-	-	-	-	( 19,672 )	19,672	-	-	-
C7	Adjustments to other capital surplus:
Adjustments to share of changes in equities of associates	-	-	9,310	-	-	-	-	-	9,310
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
D1	Net income in 2024	-	-	-	-	-	272,542	-	-	272,542
D3	Other comprehensive income (loss) in 2024, net of income tax	-	-	-	-	-	27,670	29,041	( 157,950 )	( 101,239 )
D5	Total comprehensive income (loss) in 2024	-	-	-	-	-	300,212	29,041	( 157,950 )	171,303
Z1	BALANCE DECEMBER 31, 2024	995,595	9,955,950	114,773	619,739	40,464	184,677	( 109,415 )	54,435	( 28,470 )
B1	2024 Appropriation of earnings
Legal reserve appropriated	-	-	-	18,468	-	( 18,468 )	-	-	-
B3	Legal special capital reserve	-	-	-	-	54,980	( 54,980 )	-	-	-
C7	Adjustments to other capital surplus:
Adjustments to share of changes in equities of associates	-	-	4,486	-	-	-	-	-	4,486
M7	Changes in ownership interests in subsidiaries	-	-	-	-	-	( 39,696 )	-	-	( 39,696 )
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 )
D3	Other comprehensive income (loss) in 2025, net of income tax	-	-	-	-	-	2,896	( 109,280 )	( 331,074 )	( 437,458 )
D5	Total comprehensive income (loss) in 2025	-	-	-	-	-	( 769,478 )	( 109,280 )	( 331,074 )	( 1,209,832 )
Z1	BALANCE DECEMBER 31, 2025	995,595	$ 9,955,950	$ 119,259	$ 638,207	$ 95,444	($ 711,450)	($ 218,695)	($ 263,134)	($ 28,470)

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

10 -

LEALEA ENTERPRISE CO., LTD.
PARENT COMPANY ONLY 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	($ 853,234)	$ 313,612
A20010	Adjustments to reconcile profit (loss)
A20100	Depreciation expense	370,834	418,164
A20200	Amortization expense	45,645	49,692
A20300	Reversal of expected credit loss	( 1,184)	311
A20900	Finance costs	86,105	78,391
A21200	Interest income	( 59,070)	( 75,169)
A21300	Dividend income	( 3,565)	( 2,855)
A20400	Loss (gain) on financial assets or liabilities at fair value through profit or loss, net	248	( 94,657)
A22300	Share of profits (loss) of subsidiaries, associates and joint ventures accounted for using equity method	280,293	( 23,729)
A22500	Gain on disposal or retirement of property, plant and equipment	( 2,606)	( 57)
A23100	Gain on disposal of investments	( 7,367)	( 391)
A23700	Gain on reversal of inventory impairment	( 38,632)	( 707)
A23700	Impairment loss on Property, plant and equipment	194,131	-
A23700	Impairment loss	127,556	-
A23900	Realized gain on transactions with associates	( 5,923)	( 1,683)
A24100	Gain on foreign exchange	( 3,805)	( 46,864)
A29900	Gain recognized in bargain purchase transaction	( 62,733)	( 29,027)
A30000	CHANGES IN OPERATING ASSETS AND LIABILITIES
A31115	Financial assets mandatorily measured at fair value through profit or loss	( 467,610)	-
A31130	Notes receivable	28,645	( 10,842)
A31140	Notes receivable due from related parties	-	85,167
A31150	Accounts receivable	115,876)	( 22,934)
A31160	Accounts receivable due from related parties	76,000	( 74,292)
A31200	Inventories	84,700	14,684
A31230	Prepayments	44,845	( 125,374)
A31250	Other financial assets	117,589	( 81,308)
A31990	Other assets	67	( 67)
A32130	Notes and bills payable	( 17,499)	( 26,852)
A32140	Notes and bills payable due from related parties	( 508)	( 23,584)
A32150	Accounts payable	( 167,566)	7,650
A32160	Accounts payable due from related parties	( 18,456)	428

11 -

12 -

Code		2025	2024
A32180	Other payables	($ 51,217)	($ 3,133)
A32230	Other current liabilities	( 16,584)	( 16,879)
A32240	Net defined benefit liability	( 16,808)	( 5,629)
A33000	Net cash generated by operating activities	( 221,833)	302,066
A33100	Interest received	60,625	75,570
A33200	Dividend received	3,565	2,855
A33200	Dividends received from associates	58,979	40,086
A33300	Interest paid	( 86,040)	( 77,999)
A33500	Income tax paid	( 3,038)	( 7,771)
AAAA	Net cash flows from operating activities	( 187,742)	( 334,807)
CASH FLOWS FROM INVESTING ACTIVITIES
B01800	Acquisition of investments accounted for using equity method	( 306,671)	( 511,164)
B01900	Disposal of long-term equity investment using the equity method	143,568	-
B02700	Acquisition of property, plant and equipment	( 87,556)	( 399,059)
B02800	Disposal of property, plant and equipment	5,535	2,567
B03700	Increase (decrease) in refundable guarantee deposits	( 696)	( 2)
B04300	Increase in advance loans to related parties	( 207,068)	( 289,145)
B04500	Acquisition of Intangible assets	( 805)	( 1,480)
B04600	Proceeds from disposal of intangible assets	146	-
B06500	Decrease (Increase) Other financial assets	9,209	161
BBBB	Net cash used in investing activities	( 444,338)	( 1,198,122)
CASH FLOWS FROM FINANCIING ACTIVITIES
C00100	Increase (decrease) in short-term loans	348,000	207,000
C00500	Increase (decrease) in short-term bills payable	-	( 30,000)
C01600	Long-term borrowings	4,454,000	1,800,000
C01700	Repayment of long-term borrowings	( 4,015,000)	( 1,707,500)
C03100	Increase (decrease) in guarantee deposits received	-	( 2,237)
C03700	Increase (decrease) in advance loans payable to related parties	( 313,000)	77,000
C04020	Repayment of the principal portion of lease liabilities	( 1,125)	( 203)
CCCC	Net cash generated from financing activities	472,875	344,060
DDDD	EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	( 4,943)	26,938
EEEE	NET DECREASE (INCREASE) IN CASH AND CASH EQUIVALENTS	( 164,148)	( 492,317)
E00100	CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR	492,121	984,438
E00200	CASH AND CASH EQUIVALENTS, END OF YEAR	$ 327,973	$ 492,121

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

LEALEA ENTERPRISE CO., LTD.
NOTES TO PARENT COMPANY ONLY 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 CO., LTD. (hereinafter referred to as the "Company"), 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. The Company is mainly engaged in the manufacturing and sales of polyester fully oriented yarn, polyester draw textured yarn, and polyester chip. Its factory is located in Fangyuan Township, Changhua County. In addition, the Company has added a construction department since the second half of 2004, collaborating with related parties to construct and sell residential properties. In August 1990, the Company's shares were officially listed and traded on the Taiwan Stock Exchange (TWSE).

The functional currency of the parent company only financial report of the Company is expressed in New Taiwan Dollars.

2. THE AUTHORIZATION OF FINANCIAL STATEMENTS

The accompanying parent company only 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).

Amendments to IAS 21 [Lack of Exchangeability]

The application of Amendments to IAS 21 [Lack of Exchangeability] did not have a significant effect on accounting policies of the Company.

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

New, Revised or Amended Standards and Interpretations	Effective Date Issued by IASB(Note1)
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 [Amendments to Nature-Dependent Electricity Contracts]	January 1, 2026
IFRS Accounting Standards [Annual Improvements—Volume 11]	January 1, 2026

New, Revised or Amended Standards and Interpretations
Effective Date Issued by IASB(Note1)
IFRS 17 † Insurance Contracts
January 1, 2023
(including Amendments in June 2020 and 2021)

As of the date of this financial report, the 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 IFRS10 and IAS 28 † Sale or Contribution of Assets between an Investor and its Associate or Joint Venture	To be determined
IFRS 18 † Presentation and Disclosure in Financial Statements	January 1, 2027 (Note 2)
IFRS 19 † Subsidiaries without public accountability: Disclosures (Including the 2025 amendment)	January 1, 2027
IAS 21 † Translation to a Hyperinflationary Presentation Currency	January 1, 2027

Note 1: Unless otherwise stated, the above new/amended/revised standards or interpretations are effective for the annual reporting period beginning after the respective dates.

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 Company shall assess whether it has specific principal business activities involving investments in specific types of assets and providing financing to

customers, and accordingly classify the income and expense items into operating, investing, financing, income tax, and discontinued operations.

The statement of profit or loss shall present operating profit or loss, profit or loss before financing and income tax, and the corresponding subtotals and totals.
Providing guidance to enhance aggregation and disaggregation requirements: Companies are required to identify assets, liabilities, equity, income, losses and cash flows arising from individual transactions or other events and to group and aggregate them on the basis of common characteristics so that each line item presented in the primary financial statements has at least one similar characteristic. Items with non-similar characteristics should be separated in the primary financial statements and notes. The Company will only mark such items as "Other" when it is unable to find a more informative label.
Additional disclosures for management-defined performance measures: When the company communicates publicly outside the financial statements and communicates to users of the financial statements about management's views on a particular aspect of the company's overall financial performance, it should disclose relevant information about 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 impact of income taxes and non-controlling interests on the relevant reconciling items.

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

When preparing cash flows from operating activities using the indirect method, the Company shall use operating profit or loss as the starting point for adjustment.
Interest and dividends received by the Company should be classified as investing activities, while interest and dividends paid should be classified as financing activities. If the Company is assessed to have a particular 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.
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In addition to the above impacts, as of the date of approval and issuance of this individual financial report, the Company is still evaluating the other impacts of the amendments to various standards and interpretations on the financial position and financial performance, and the relevant impacts will be disclosed when the evaluation is completed.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Statement of Compliance

The accompanying parent company only financial statements have been prepared in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

b. Basis of Preparation

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

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 quoted prices included within 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.

When preparing the parent company only financial statements, the Company adopts the equity method for investment in subsidiaries and affiliated enterprises. In order to make the current profit and loss, other comprehensive profit and loss and equity of this financial statements consistent with those attributed to the owner of the Company in the consolidated financial statements of the Company, some accounting treatment differences between the parent company only basis and the consolidated basis are due to adjustment of "investment using the equity method", "share of profit and loss in subsidiaries and affiliated enterprises using the equity method" "Share of other comprehensive profits and losses in subsidiaries and affiliated enterprises using the equity method" and related equity items.

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).

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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) The entity does not have an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

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. 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.

Amount receivable or payable with relation to the Company's foreign operations' currency, the liquidation of the item is currently neither planned nor possible in the foreseeable future (so it constitutes a part of the net investment in the foreign operations), the exchange difference is originally recognized as other comprehensive gains and losses, and when disposing net investment, reclassify from equity to 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.

e. 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). Except for 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

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method.

f. Investments Accounted for Using Equity Method

Investments accounted for using the equity method include investments in subsidiaries and associates.

(1) Investment in subsidiaries

A subsidiary is an entity that is controlled by the Company.

Under the equity method, an investment in a subsidiary is initially recognized at cost and adjusted thereafter to recognize the Company's share of profit or loss and other comprehensive income of the subsidiary as well as the distribution received. The Company also recognized its share in the changes in the equity of subsidiaries.

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. Any difference between the carrying amount of the subsidiary and the fair value of the consideration paid or received is recognized directly in equity.

When the company's share of losses to a subsidiary equals or exceeds its equity in the subsidiary (including the carrying amount of the subsidiary under the equity method and other long-term equity that is essentially part of the company's net investment in the subsidiary), the Company recognizes losses based on shareholding ratio continually.

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 a subsidiary recognized at the date of acquisition is recognized as goodwill. The goodwill is included in the carrying amount 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.

To assess impairment, the Company must consider the cash-generating unit in the financial report and compare the recoverable amount with carrying amounts. If the recoverable amount of the asset increases subsequently, the reversal of the impairment loss shall be recognized as an interest, but the carrying amount of the asset after the reversal of the impairment loss shall not exceed the asset that should be deducted if the impairment loss is not recognized. Any reversal of the impairment loss attributable to goodwill shall not be reversed in subsequent periods.

When the Company loses control of a subsidiary, any retained investment of the former subsidiary is measured at the fair value at that date. A gain or loss is recognized in profit or loss and calculated as the difference between the aggregate of the fair value of consideration received and the fair value of any retained interest at the date when control is lost; and the previous carrying amount of the investments in such subsidiary. In addition, the Company shall account for all amounts previously recognized in other comprehensive income in relation to the subsidiary on the same basis as would be required if the subsidiary had directly disposed of the related assets

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and liabilities.

When the Company transacts with its subsidiaries, profits and losses resulting from the transactions with the subsidiaries are recognized in the parent company only financial statements only to the extent of interests in the subsidiaries that are not owned by the Company.

(2) 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 parent company only 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. The goodwill is included in the carrying amount 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 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.

To assess impairment, the Company must consider the overall carrying amount (including goodwill) of the investment as a single asset to compare the recoverable

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and carrying amounts for the impairment test. Any impairment loss recognized is not allocated to any asset, including goodwill that forms part of the carrying amount of the investment. Any reversal of the impairment loss is recognized to the extent of subsequent increases in the recoverable amount of the 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 sidestream transactions needs to be shown in the parent company only financial statements when not affecting the interests of the Company or the associate.

g. 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 cost shall include professional service expenses and the cost of loans eligible for capitalization. Samples produced when testing whether an item of property, plant and equipment is functioning properly before that asset reaches its intended use are measured at the lower of cost or net realizable value, and any proceeds from selling those samples and the cost of those samples are recognized in profit or loss. 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.

h. 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.

Owned / Owner-occupied investment property is measured by the original cost (including

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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 derecognized, the difference between the net disposal price and the book value of the asset is recognized as profit or loss.

i. Intangible Assets

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 indefinite useful life are carried at cost less accumulated impairment losses.

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.

j. 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.

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 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.

k. 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

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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.

1. 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.

(1) Financial assets

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

(1.1) Measurement types

Financial assets held by the Company are classified into these categories: financial assets at fair value through profit or 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

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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 21 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 outstanding.

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 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) For financial assets that are not purchased or originated credit-impaired but subsequently become credit-impaired, interest income is calculated by applying the effective interest rate to the amortized cost of the financial asset 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

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major financial difficulties, defaults, the debtor is likely to apply for bankruptcy or other financial reorganization, or the active market for those 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.

(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 contingent consideration recognized by an acquirer 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.

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

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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 are 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 loss refers to the weighted average credit loss weighted by the risk of default. The 12-month expected credit loss represents the expected credit loss arising from the possible default of the financial instrument within 12 months after the reporting date, and the expected credit loss in the duration represents the expected credit loss caused by all possible default of the financial instrument in the expected duration.

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.

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 as a whole, the difference between the carrying amount of the asset and the sum of the consideration received and any accumulated gains or losses recognized in other comprehensive profits and losses are recognized in profit or loss.

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

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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 finance costs. Other benefits or losses arising from remeasurement are recognized in other benefits and losses. Please refer to Note 21 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.

(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.

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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.

m. 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 the best estimate of the cash flows to pay off obligations.

Carbon Fee Liability Provision

The carbon fee liability reserve recognized in accordance with Taiwan's carbon fee collection regulations and other relevant laws and regulations is based on the best estimate of the expenditure required to settle the obligations for the current year.

n. 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.

o. 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.

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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 separately expressed on parent company only balance sheets.

Right-of-use assets are depreciated on a straight-line basis from the commencement of the lease to the expiration of the useful life or the expiration of the lease term, whichever is earlier.

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

28 -

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.

p. 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.

If a specific borrowing is temporarily invested before the occurrence of capital expenditure meeting the requirements, the investment income earned from the temporary investment is deducted from the borrowing cost meeting the capitalization conditions.

Except for the above, all other borrowing costs are recognized as profit and loss in the period in which they are incurred.

q. 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.

r. 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

Defined contribution 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

29 -

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.

s. Treasury Shares

The treasury shares are recognized at the purchase cost when the Company reacquired these company stocks. When disposing of treasury shares, the price difference generated by the treasury stock exchange is recognized in shareholders' equity. The company's subsidiaries hold the company's stocks, which are treated as treasury shares in accordance with the provisions of the International Financial Reporting Standards (IFRS) Bulletin No. 2 "Share Basic Payment".

The Company 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.

t. Income Tax

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

(1) Current income tax

The undistributed surplus calculated 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 parent company only 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

30 -

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 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.

5. 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 Company has incorporated the potential impacts of U.S. reciprocal tariff measures into its considerations of key estimates, including cash flow projections, growth rates, discount rates, and profitability. Management will continue to monitor and review these estimates and their underlying assumptions.

Critical Accounting Judgments Related to Associates

The Company holds 19.27% of the shares of Li Peng Enterprise Company Limited (hereinafter referred to as "Li Peng Enterprise") and is its single 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.

6. CASH AND CASH EQUIVALENTS

	December 31, 2025	December 31, 2024
Cash on hand and working fund	$ 372	$ 353
Bank cheques and demand deposits	128,575	57,681
Foreign currency deposits	199,026	57,059
Bank foreign currency time deposits with original maturity within 3 months	-	245,888
Short-term bill	-	131,140
	$ 327,973	$ 492,121

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

7. 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	90,529	86,407
— Domestic Open-ended Funds	471,467	-
	$561,996	$ 94,245
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$248 thousand in losses and NT$94,657 thousand in gains.

8. NOTES AND ACCOUNTS RECEIVABLE

	December 31, 2025	December 31, 2024
Notes receivable
At amortized cost
Total carrying amount	$ 21,386	$ 50,031
Less: Loss allowance	(214)	(500)
	$ 21,172	$ 49,531
Account receivable
At amortized cost
Total carrying amount	$ 155,873	$ 272,853
Less: Loss allowance	(1,661)	(2,559)
	$ 154,212	$ 270,294

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	0.5%~1%	0.5%~3%	0.5%~10%	0.5%~50%	0.5%~100%
Total carrying amount	$ 106,915	$ 37,451	$ 21,464	$ 7,413	$ 4,016	$ 177,259
Loss allowance (expected credit loss over the period)	( 1,045 )	( 666 )	( 107 )	( 37 )	( 20 )	( 1,875 )
Amortized cost	$ 105,870	$ 36,785	$ 21,357	$ 7,376	$ 3,996	$ 175,384

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	0.5%~1%	0.5%~3%	0.5%~10%	0.5%~50%	0.5%~100%
Total carrying amount	$ 221,494	$ 52,927	$ 34,747	$ 12,277	$ 1,439	$ 322,884
Loss allowance (expected credit loss over the period)	( 2,144 )	( 673 )	( 174 )	( 61 )	( 7 )	( 3,059 )
Amortized cost	$ 219,350	$ 52,254	$ 34,573	$ 12,216	$ 1,432	$ 319,825

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

	2025	2024
Balance, beginning of year	$ 3,059	$ 2,748
Less: Reversal on impairment loss	( 1,184 )	311
Balance, end of year	$ 1,875	$ 3,059

9. INVENTORIES

(a) The inventory details related to textile business are as follow:

	December 31, 2025	December 31, 2024
Finished goods	$ 725,874	$ 1,044,002
Work in process	11,208	17,306
Raw materials	185,939	315,936
Inventory in transit	78,327	113,423
	$ 1,001,348	$ 1,490,667

As of 2025 and 2024, the costs of goods sold related to the inventories of textile business were NT$4,576,075 thousand and NT$6,130,484 thousand, respectively.

The costs of goods sold related to textile business in 2025 and 2024 including inventory valuation loss and gains on inventory value recoveries of NT$38,632 thousand in gains and NT$707 thousand in loss, respectively.

The gain from the recovery of the net realizable value of inventories in 2025 is mainly due to the disposal of inventories that were originally recorded as impairment losses.

The gain from the recovery of the net realizable value of inventories in 2024 is mainly due to the disposal of inventories that were originally recorded as impairment losses and the recovery of market prices.

(b) The inventory details related to construction business are as follow:

	December 31, 2025	December 31, 2024
Premises under construction	$ 1,189,395	$ 1,123,926
Land held for development	377,782	-
Parking spaces for sales	12,968	12,968
Less: allowance for reduction	( 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 of parking spaces for sales were NT$12,968 thousand and NT$12,968 thousand, respectively.

10. INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD

	December 31, 2025	December 31, 2024
Investment in Subsidiaries	$ 2,217,582	$ 2,526,381
Investment in Associates	3,743,516	4,137,454
	$ 5,961,098	$ 6,663,835

(a) Investment in Subsidiaries

	December 31, 2025	December 31, 2024
Unlisted or Private Company
LIHAO INVESTMENT Co., Ltd.	$ 428,802	$ 462,337
LIZAN INVESTMENT Co., Ltd.	234,590	271,549
LEA JIE ENERGY Co., Ltd.	230,159	243,974
LIBOLON ENTERPRISE Co., Ltd.	15,355	13,480
PT. INDONESIA LIBOLON
FIBER SYSTEM	1,162,360	1,323,190
LI LING Film Co., Ltd.	75,755	211,851
LIBOLON Energy Co., Ltd.	70,561	-
	$ 2,217,582	$ 2,526,381

Subsidiary Name	Percentage of Equity and Voting Rights Held
	December 31, 2025	December 31, 2024
LIHAO INVESTMENT Co., Ltd.	53.38%	53.38%
LIZAN INVESTMENT Co., Ltd.	53.17%	53.17%
LEA JIE ENERGY Co., Ltd.	70.00%	70.00%
LIBOLON ENTERPRISE Co., Ltd.	100.00%	100.00%
PT. INDONESIA LIBOLON
FIBER SYSTEM	70.00%	70.00%
LI LING Film Co., Ltd.	69.81%	60.67%
LIBOLON Energy Co., Ltd.	60.00%	-

(b) Investment in Associates

	December 31, 2025	December 31, 2024
Significant associate
LI PENG ENTERPRISE Co., Ltd.	$ 1,551,939	$ 1,645,303
Individually insignificant associates	2,191,577	2,492,151
	$ 3,743,516	$ 4,137,454

(1) Significant associates

	Percentage of Equity and Voting Rights Held
Investee Company Name	December 31, 2025	December 31, 2024
LI PENG ENTERPRISE Co., Ltd.	19.27%	17.46%

Please refer to "Information on Investees, Locations, etc." in Table 6 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.	$ 946,884	$ 1,131,132
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 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
Treasury Stock	287,142	287,142
	$ 8,086,515	$ 9,464,064
Shareholding ratio of the Company	19.27%	17.46%
Equity attributable to the Company	$ 1,558,078	$ 1,652,097
Unrealized profits and losses of upstream transactions	( 6,139 )	( 6,794 )
Investment carrying amount	$ 1,551,939	$ 1,645,303
	2025	2024
Operating revenue	$ 8,374,675	$ 10,669,091
Net gain (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 )

(2) 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.

For the years ended December 31, 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, Fuli Express Co., Ltd. and PT. INDONESIA LIBOLON FIBER SYSTEM, REMONDIS LEALEA Enterprise Co., Ltd. are audited by the other accountants, instead of the Company's certified accountant.

11. PROPERTY, PLANT AND EQUIPMENT

	December 31, 2025	December 31, 2024
Owned land	$ 1,489,370	$ 1,492,111
Buildings	656,829	832,730
Machinery Equipment	973,267	1,247,055
Transportation Equipment	12,383	18,550
Other Equipment	192,259	219,782
Leased Assets	823,829	828,845
Equipment awaiting Examination	-	2,970
	$ 4,147,937	$ 4,642,043
	Owned land	Buildings
---	---	---
Cost
Balance at January 1, 2025	$ 1,495,290	$ 2,444,511
Additions	-	-
Disposals	-	-
Transfers	( 2,741 )	6,945
Balance at December 31, 2025	$ 1,492,549	$ 2,451,456
Accumulated depreciation and impairment
Balance at January 1, 2025	$ 3,179	$ 1,611,781
Disposals	-	-
Depreciation	-	57,190
Impairment loss	-	118,419
Transfers	-	7,237
Balance at December 31, 2025	$ 3,179	$ 1,794,627
Carrying amounts at December 31, 2025	$ 1,489,370	$ 656,829
Cost
Balance at January 1, 2024	$ 1,495,290	$ 2,392,464
Additions	-	57,477
Disposals	-	( 5,415 )
Transfers	-	( 15 )
Balance at December 31, 2024	$ 1,495,290	$ 2,444,511
Accumulated depreciation and impairment
Balance at January 1, 2024	$ 3,179	$ 1,555,828
Disposals	-	( 5,415 )
Depreciation	-	61,368
Transfers	-	-
Balance at December 31, 2024	$ 3,179	$ 1,611,781
Carrying amounts at December 31, 2024	$ 1,492,111	$ 832,730

Due to global overcapacity in the polyester solid state PET chip and polyester chip markets, leading to intense low-price competition and a decline in domestic demand, the market has experienced a significant oversupply and imbalance between production and sales. Coupled with rising internal production costs and external tariff barriers, the market outlook remains uncertain. To optimize human resources and equipment utilization and to mitigate corporate losses, the Board of Directors resolved on October 1, 2025, to cease production of the direct-spinning equipment at the Chemical Fiber Plant. Furthermore, as the Company expects a decrease in future cash inflows from the factory buildings and machinery associated with these products—resulting in a recoverable amount lower than their carrying amount—the Company recognized an impairment loss of NT$194,131 thousand for the year 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	25~40years
Warehouse	10~25years
Hydroelectric Engineering	10~20years
Maintenance and Repair
Engineering	3~10years
Machinery Equipment
Machinery Engineering	5~15years
Electrical Engineering	5~9years
Maintenance and Repair
Engineering	2~5years
Transportation Equipment
Lifts and Elevators	10~15years
Fork Lift and Pallet Truck	5~6years
Other Equipment
Power Equipment	9~15years
Engineering Facilities	5~15years
Other Facilities	5~10years
Maintenance and Repair
Engineering	2~5years

(b) 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.

(c) Please refer to Note 14 and 24 for the amount related to property, plant and equipment that the Company set pledge as loan guarantee.

12. LEASE ARRANGEMENTS

(a) Right-of-use assets

	December 31, 2025	December 31, 2024
Carrying amounts
Lands	$ 49,160	$ 67
Buildings	13,722	-
	$ 62,882	$ 67

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

(b) Lease liabilities

	2025	2024
Carrying amounts	$ 64,308	$ 79
Current portion	$ 1,904	$ 13
Noncurrent portion	$ 61,347	$ 54

Ranges of discount rates for lease liabilities are as follows:

	December 31, 2025	December 31, 2024
Lands	2.15556%~	1.4749%~
	2.19721%	2.1556%
Buildings	2.19624%	-

	2025	2024
Expenses related to short-term leases	$ 8,198	$ 8,028
Total cash (outflow) for leases	($ 10,151)	($ 8,232)

Investment property

	Lands	Buildings	Total
Cost
Balance at January 1, 2025	$ 277,077	$ 151,525	$ 428,602
Balance at December 31, 2025	$ 277,077	$ 151,525	$ 428,602
Accumulated depreciation and impairment
Balance at January 1, 2025	$ -	$ 135,021	$ 135,021
Depreciation	-	2,465	2,465
Balance at December 31, 2025	$ -	$ 137,486	$ 137,486
Carrying amounts at December 31, 2025	$ 277,077	$ 14,039	$ 291,116

Cost	Lands	Buildings	Total
Balance at January 1, 2024	$ 277,077	$ 154,627	$ 431,704
Disposals	-	( 3,102 )	( 3,102 )
Balance at December 31, 2024	$ 277,077	$ 151,525	$ 428,602
Accumulated depreciation and impairment
Balance at January 1, 2024	$ -	$ 135,625	$ 135,625
Disposals	-	( 3,102 )	( 3,102 )
Depreciation	-	2,498	2,498
Balance at December 31, 2024	$ -	$ 135,021	$ 135,021
Carrying amounts at December 31, 2024	$ 277,077	$ 16,504	$ 293,581

(a) The investment property is depreciated on a straight-line basis based on the following durability years:
Main buildings
2~35years

(b) The investment property of LEALEA ENTERPRISE entrusts an independent appraisal agency (unrelated party) to conduct value assessment, and the appraisal result shows that the property value of the investment property are NT$1,382,146 thousand and NT$1,414,354 thousand as of December 31, 2025 and 2024.

(c) Please refer to Notes 14 and 24 for the amount of investment real estate pledged by the merged company as loan security.

14. 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	1,055,000	1,307,000
	$ 3,955,000	$ 3,607,000

The interest rates of bank revolving loans were 1.5624% - 2.0909% and 1.5606% - 2.0891% as of December 31, 2025 and 2024, respectively.

The short-term loans on December 31, 2025 and 2024 were collateral for accounts receivable, inventories, property, plant and equipment. Please refer to Notes 11, 13 and 24.

(b) 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

	Interest Rate	December 31, 2025	December 31, 2024
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. The following month 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	-
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 fifteenth day of every 3 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	-
Chang Hwa Bank.
The total amount of secured loans for dated as December 24, 2025 to December 24, 2028 is NT$500 million, Interest is calculated and settled quarterly. The facility is revolving and available for drawdown until March 31, 2026. The principal is to be repaid in full within three years starting from March 31, 2026, upon the respective maturity dates.	2.378%	500,000	-

44 -

	Interest Rate	December 31, 2025	December 31, 2024
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
		2,081,500	1,642,500
Less: Portion of current liabilities
due within one year		(316,367)	(315,000)
		$ 1,765,133	$ 1,327,500

For collateral for long-term loans, please refer to Notes 11、13 and 24.

15. 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, the Company have made monthly contributions equal to 6% of each employee's monthly salary to employees' pension accounts.

(b) Defined benefit plans

The Company 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 parent company only balance sheet, were as follows:

	December 31, 2025	December 31, 2024
Present value of defined benefit obligation	$ 307,156	$ 324,752
Fair Value of Plan Assets	( 148,896)	( 147,707)
Net defined benefit liability	$ 158,260	$ 177,045

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	$ 354,803	($ 151,568)	$ 203,235
Service cost
Past service cost	2,540	-	2,540
Current service cost	1,533	-	1,533
Interest expense (income)	4,435	( 1,955)	2,480
Recognized in profit and loss	8,508	( 1,955)	6,553
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	( 7,437)	-	( 7,437)
—Experience adjustments	( 53)	-	( 53)
Components of defined benefit costs recognized in other comprehensive income	( 7,490)	( 13,071)	( 20,561)
Contributions from employer	-	( 12,182)	( 12,182)
Benefits paid	( 31,069)	31,069	-
Balance as of December 31, 2024	$ 324,752	($ 147,707)	$ 177,045
Balance as of January 1, 2025	$ 324,752	($ 147,707)	$ 177,045
Service cost
Past service cost	1,259	-	1,259
Current service cost	3,448	-	3,448
Interest expense (income)	4,871	( 2,285)	2,586
Recognized in profit and loss	9,578	( 2,285)	7,293
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	3,269	-	3,269
—Experience adjustments	5,875	-	5,875
Components of defined benefit costs recognized in other comprehensive income	9,144	( 11,122)	( 1,978)
Contributions from employer	-	( 24,100)	( 24,100)
Benefits paid	( 36,318)	36,318	-
Balance as of December 31, 2025	$ 307,156	($ 148,896)	$ 158,260

45 -

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	$ 6,015	$ 5,385
Marketing expenses	320	303
General and administrative expenses	732	675
Research and development expenses	226	190
	$ 7,293	$ 6,553

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%	1.5%
Long-term average salary increase rate	2.5%	2.5%

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%	($ 6,487)	($ 7,199)
Decrease by 0.25%	$ 6,695	$ 7,437
Expected average salary increase rate
Increase by 0.25%	$ 6,511	$ 7,237
Decrease by 0.25%	($ 6,342)	($ 7,041)

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	$ 9,005	$ 9,228
Average maturity period of defined benefit obligations	8.6 years	9 years

16. EQUITY

(a) Capital

Common stocks

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

The Company has issued common shares with a par value of NT$10 per share. Each share entitles the holder to one vote and the right 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 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.

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 18 (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.

The Company held a regular shareholders' meeting on June 21, 2024, and resolved to approve the loss allowance proposal for 2023.

The appropriations of earnings for 2024 approved in the shareholders' general meetings on June 13, 2025, were as follows:

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

The proposal for deficit compensation for 2025 is still subject to the resolution of the general meeting of shareholders 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.

48 -

(d) Other equity

(1) Foreign Organization Financial report Exchange difference

	2025	2024
Balance at the beginning of the year	($109,415)	($138,456)
Occurrence in the year
Foreign operating organization translation differences	(109,280)	29,041
Other comprehensive income for the year	(109,280)	29,041
Balance at the end of the year	($218,695)	($109,415)

(2) Financial assets unrealized profit and loss at fair value through other comprehensive income

	2025	2024
Balance at the beginning of the year	$ 54,435	$216,468
Occurrence in the year
Share of associated enterprises using the equity method	(331,074)	(157,950)
Other comprehensive income for the year	(331,074)	(157,950)
Accumulated gains and losses on disposal of equity instruments are transferred to retained earnings	13,505	(4,083)
Balance at the end of the year	($263,134)	$ 54,435

(e) 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	11,204,988	-	-	11,204,989

Note : Stock dividends

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

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

Shares of the Company held by LIHAO INVESTMENT Co., Ltd. and LIZAN INVESTMENT Co., Ltd. are treated as treasury shares. Apart from being ineligible to participate in the Company's cash capital increases and having no voting rights, the remaining rights are identical to those of general shareholders.

REVENUE

Item	2025	2024
Polyester draw textured yarn	$ 3,411,714	$ 3,761,620
Polyester fully oriented yarn and polyester chip	342,445	662,312
Polyester solid state PET chip	814,527	1,714,006
Others(includingrawmaterial, steam, electricity, etc.)	40,905	57,392
	$ 4,609,591	$ 6,195,330

50 -

18. INCOME FROM CONTINUING OPERATIONS

(a) Interest income

	2025	2024
Interest on bank deposits	$ 9,546	$ 25,286
Interest on advance loans to related parties	38,739	34,318
Long-term interest income receivable	7,279	7,440
Others	3,506	8,125
	$ 59,070	$ 75,169

(b) Other income

	2025	2024
Rental income	$ 94,195	$ 98,891
Dividend income	3,565	2,855
Others	68,562	80,060
	$ 166,322	$ 181,806

(c) Other gains and losses

	2025	2024
Gains on disposal of property, plant and equipment	$ 2,606	$ 57
Gains (losses) Foreign exchange	( 136,885)	373,545
Gains on financial assets and financial liabilities at fair value through profit or (loss)	( 248)	94,657
Gains on disposal of investments	7,367	391
Impairment loss of property, plant and equipment (Note 11)	( 194,131)-	-
Impairment loss	( 127,556)	-
Other losses	( 70,035)	( 34,865)
	($ 518,882)	$ 433,785

(d) Finance costs

	2025	2024
Interest on bank loans	$ 108,480	$ 92,230
Interest on borrowings from related parties	4,508	4,076
Finance expenses	890	200
Interests on lease liabilities	829	1
Others	3,986	1,584
Less: The amount included in the cost of assets according with the requirements	( 32,588)	( 19,700)
	$ 86,105	$ 78,391

Capitalization of interest related information is as follows:

	2025	2024
Capitalized interest amount	$ 32,588	$ 19,700
Capitalized interest rate	2.039081% ~ 2.237165%	2.056308% ~ 2.196486%

(e) Depreciation and Amortization

	2025	2024
Property, plant and equipment	$ 366,876	$ 415,466
Right-of-use assets	1,493	200
Investment property	2,465	2,498
Amortization expense (Including the amortization for other intangible assets and prepayments)	45,645	49,692
Total	$ 416,479	$ 467,856
Depreciation expenses summarized by function
Costs of Revenue	$ 339,315	$ 383,818
Operating expenses	12,293	12,348
Non-operating expenses	19,226	21,998
	$ 370,834	$ 418,164
Amortization expenses summarized by the function
Costs of Revenue	$ 41,522	$ 43,277
Operating expenses	2,599	4,340
Non-operating expenses	1,524	2,075
	$ 45,645	$ 49,692

(f) Employee benefits expenses

	2025
	Operating Costs	Operating Expenses	Total
Salary and Wages	$ 420,210	$ 77,672	$ 497,882
Labor and health insurance expenses	54,591	6,334	60,925
Pension expenses
Defined contribution Plan	15,400	2,593	17,993
Defined benefit plan (Note 15)	6,015	1,278	7,293
	21,415	3,871	25,286
Compensation to directors	-	3,600	3,600
Other employee benefits	37,253	4,183	41,436
Total employee benefit expenses	$ 533,469	$ 95,660	$ 629,129

	2024
	Operating Costs	Operating Expenses	Total
Salary and Wages	$ 444,730	$ 84,756	$ 529,486
Labor and health insurance expenses	51,905	6,579	58,484
Pension expenses
Defined contribution Plan	15,302	4,241	19,543
Defined benefit plan (Note 15)	5,385	1,168	6,553
	20,687	5,409	26,096
Compensation to directors	-	7,419	7,419
Other employee benefits	38,790	4,510	43,300
Total employee benefit expenses	$ 556,112	$ 108,673	$ 664,785

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

After amending the articles of association

Pursuant to the amendments to the Securities and Exchange Act in August 2024, the Company adopted amendments to its Articles of Incorporation as approved by the shareholders' meeting in June 2025. 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 at least 1% as employee remuneration and no more than 5% as director remuneration. In addition, at least 1% shall be appropriated for salary adjustments or remuneration distribution to grassroots employees. However, if there are accumulated losses, an amount sufficient to offset such losses shall first be reserved before the aforementioned appropriations for employee remuneration, director remuneration, and salary adjustments or remuneration distribution to grassroots employees are made.

Before amending the articles of association

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

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

If there is a change in the proposed amounts after the annual parent company only 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.

19. 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	$ 1,777	$ 1,352
Income tax adjustments on prior years	4,721	149
Deferred income tax
Expense recognized in the current year	( 79,787)	42,155
Adjustments for prior years	( 7,571)	( 2,586)
Income tax expense recognized in (profit) or loss	($ 80,860)	$ 41,070

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

	2025	2024
Income tax expense at the statutory rate for income before tax	($170,647)	$ 62,722
Tax effect of adjusting items
Investment loss (gain) accounted for using equity method	56,059	( 4,745)
Loss (gain) on valuation of financial asset	( 1,518)	( 3,281)
Disposal of investment losses	( 1,473)	( 78)
Tax-exempt income	( 713)	( 571)
Unrealized (realized) investment losses	25,511	( 5,541)
Others	14,771	( 4,999)
Adjustments to income tax expense recognized in the prior year	( 2,850)	( 2,437)
Current income tax expense	($ 80,860)	$ 41,070

(b) Deferred income tax assets and liabilities

	December 31, 2025	December 31, 2024
Deferred income tax assets
The excess amount of bad debt	$ 3,450	$ 3,243
Allowance for valuation loss of idle assets	37,726-	-
Allowance for reduction of inventory to market	33,109	40,835
Defined benefit pension plan	4,271	7,632
Unused vacation bonus	4,341	4,206
Net operating loss carryforwards	68,295	9,816
Investment Tax Credit	1,817	1,817
Others	16,657	15,566
	$ 169,666	$ 83,115
Deferred income tax liabilities
Reserve for land revaluation increment tax	$ 96,653	$ 96,653
Unrealized exchange benefit Unrealized financial product valuation benefit	4,658	3,897
	-	1,568
	$ 101,311	$ 102,118

As of December 31,2025, the loss write-off related information is as follows:

Balance not yet deducted	Last deduction year
$ 86,935	2033
254,548	2035
$ 341,483

(d) Income tax examination

The tax authorities have examined the profit-seeking enterprise annual income tax returns of the Company through 2023(excluding fiscal year 2022)

20.BASIC AND DILUTED EARNINGS PER SHARE

Earnings per share (EPS) are computed as follows:

	Amounts (Numerator) After Tax	Number of Shares (Denominator) (In thousands)	Earnings Per Share (NT$) After Tax
2025
Basic LPS
Current profits (losses) attributable to common shareholders	($ 772,374)	989,627	($ 0.78)
Diluted LPS
Current profits (losses) attributable to common shareholders	($ 772,374)	989,627	($ 0.78)
2024
Basic EPS
Current profits (losses) attributable to common shareholders	$ 272,542	989,627	$ 0.28
Dilutive effect of potential ordinary Share 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 Company 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.

21.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.

22.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	$ 561,996	$ -	$ 373	$ 562,369
December 31, 2024
	Level 1	Level 2	Level 3	Total
Financial assets at fair value through profit or loss	$ 86,407	$ 7,838 -	$ 373	$ 94,618

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	$ 562,369	$ 94,618
Carried at amortized cost(Note1)	2,570,453	2,871,765
Financial liabilities
Carried at amortized cost(Note2)	6,298,194	6,085,123

Note 1: The balances include financial assets measured at amortized cost, comprising cash and cash equivalents, notes receivable and accounts receivable, other financial assets, advances to related parties, long-term receivables, and refundable deposits.

Note 2: The balances include financial liabilities measured at amortized cost, comprising short-term borrowings, short-term notes and bills payable, notes payable, accounts payable, other payables, advances from related parties, current portion of long-term

borrowings, guarantee deposits received, and long-term borrowings.

(f) The net profit from the operation of financial derivatives in 2025 is NT$10,519 thousand for settled gains, 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 gains 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 consist of market risks (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.

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 foreign exchange swap contracts.

58 -

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 (NTS) (In Thousands)	Sensitivity Analysis
					Variation	Profit and Loss Impact
Financial Assets
Monetary items
US Dollar to	$ 44,422,088	$ 44,422	31.43	$ 1,396,186	1%	$ 13,962
New Taiwan Dollar Chinese Yuan to	3,990	4	4.496	18	1%	-
New Taiwan Dollar Non-monetary items
Non-derivatives
US Dollar to	96,149	96	31.43	3,022	1%	30
New Taiwan Dollar Derivatives
Financial Liability
Monetary items
US Dollar to	1,308,367	1,308	31.43	41,122	1%	(411)
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 (NTS) (In Thousands)	Sensitivity Analysis
					Variation	Profit and Loss Impact
Financial Assets
Monetary items
US Dollar to	$ 48,735,250	$ 48,735	32.785	$ 1,597,785	1%	$ 15,978
New Taiwan Dollar Chinese Yuan to	3,989	4	4.478	18	1%	-
New Taiwan Dollar Non-monetary items
Non-derivatives
US Dollar to	96,149	96	32.785	3,152	1%	32
New Taiwan Dollar Derivatives
US Dollar to	25,000,000	25,000	32.785	7,838	1%	78
New Taiwan Dollar
Financial Liability
Monetary items
US Dollar to	1,469,301	1,469	32.785	48,171	1%	(482)
New Taiwan Dollar Chinese Yuan to	26,544	27	4.478	119	1%	(1)
New Taiwan Dollar

60 -

(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	$ 327,601	$ 590,123
– financial liabilities	2,568,251	2,757,067
Ccash flow interest rate risk
– financial liabilities	3,531,500	2,492,500

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 from January 1 to December 31 in 2025 and 2024 were NT$35,315 thousand and NT$24,925 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 Company's unused financing line, please refer to the following (3) Description of Financing Line.

(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	$ 3,955,000	$ -	$ -	$ -
Notes payable (including related parties)	469	-	-	-
Accounts payable (including related parties)	86,674	-	-	-
Other payables (including related parties)	169,020	-	-	-
Long-term loans (including due within one year or one operating cycle)	316,367	1,653,533	111,600	-
Guarantee deposits	5,531	-	-	-
Provisions	1,495	-	-	-
Lease liabilities	3,264	3,264-	9,778-	69,251-
	$ 4,537,820	$ 1,656,797	$ 121,378	$ 69,251

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	$ 3,607,000	$ -	$ -	$ -
Notes payable (including related parties)	18,476	-	-	-
Accounts payable (including related parties)	272,701	-	-	-
Other payables (including related parties)	225,914	-	-	-
Advance loans to related parties	313,000	-	-	-
Long-term loans (including due within one year or one operating cycle)	315,000	1,080,000	247,500	-
Guarantee deposits	5,532	-	-	-
Lease liabilities	14	14	42	-
	$ 4,757,637	$ 1,080,014	$ 247,542	$ -

(3.2) Liquidity of derivative financial liabilities

For liquidity analysis of derivative financial instruments, net settled derivatives are prepared in accordance with inflows and outflows of net cash of undiscounted contract and gross settled derivatives are prepared in accordance with inflows and outflows of total cash of undiscounted contract. When the amounts payable or receivable are not fixed, the amounts disclosed are determined based on the estimated interest rates derived from the yield curve as of the balance sheet date.

(3.3) Financing amount (including letter of credit opening amount)

	December 31, 2025	December 31, 2024
Unsecured bank loan limit
—Used amount	$ 2,146,500	$ 2,319,500
—Unused amount	3,302,870	3,620,075
	$ 5,449,370	$ 5,593,575
Secured bank loan limit
—Used amount	$ 3,890,000	$ 2,930,000
—Unused amount	1,320,000	1,920,000
	$ 5,210,000	$ 4,850,000

62 -

23. RELATED PARTY TRANSACTIONS

Except for the items disclosed other notes, 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 HAO Investment Co., Ltd.	Subsidiary
LI ZAN Investment Co., Ltd.	Subsidiary
LIBOLON Enterprise Co., Ltd.	Subsidiary
LEA JIE Energy Co., Ltd.	Subsidiary
Pt. Indonesia LIBOLON Fiber System	Subsidiary
LI LING Film Co., Ltd.	Associate/Subsidiary
(Subsidiary from June 1, 2024)
VIRTUE ELITE Ltd.	Second-tier Subsidiary
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
REMONDIS LEALEA Enterprise Co., Ltd.	Associate/Non-associate
(Non-associate from 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/
Subsidiary (Subsidiary from January 2, 2025)
ETON Petrochemical Co., Ltd.	Substantive related party
APEX FONG YI Technology Co., Ltd.	Substantive related party
BLOOMING Development Co., Ltd.	Substantive related party
LEALEA HOTELS & RESORTS Co., Ltd.	Substantive related party
PT INDONESIA HWALIN KNITTING	Substantive related party
KUO,SHAO-YI	Chairman of the Board

(b) Net revenue

Related Party Category/Name	2025	2024
Subsidiary	$ 188,785	$ 116,627
Associates
LI PENG Enterprise Co., Ltd.	845,035	896,981
Others	30	14,079
Other related parties	1,086	11,323
	$1,034,936	$1,039,010

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.	$ 309,863	$ 651,434
Others	6,444	10,401
Other related parties	12,178	-
	$ 328,485	$ 661,835

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	Subsidiary
	PT.INDONESIA	$ 20,149	$ 55,304
	LIBOLON FIBER SYSTEM
	Others	2,183	1,926
	Associates
	LI PENG Enterprise	54,848	87,702
	Co., Ltd.
	Others	-	4
	Other related parties	-	8,244
		$ 77,180	$ 153,180
Other receivable(Note)	Subsidiary	$ 49	$ 3
	Associates
	LI PENG Enterprise	-	22
	Co., Ltd.	$ 49	$ 25

No deposit has been collected for the circulating accounts receivables from related parties. Accounts receivables from related parties in 2025 and 2024 do not include expected credit losses.

Note: Other receivables include accrued interest receivable on guarantee service fees at the end of the period.

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

Item	Related Party Category/Name	December 31, 2025	December 31, 2024
Accounts payable	Associates
	LI PENG Enterprise Co., Ltd.	$ 20,947	$ 38,975
	Others	340	768
		$ 21,287	$ 39,743
Notes payable	Associates
	FU LI Express Co., Ltd.	$ 463	$ -
	Others	-	971
		$ 463	$ 971
Other notes payable and other accrued expense	Associates
	LI PENG Enterprise Co., Ltd.	$ 8,862	$ 11,889
	LEALEA Technology Co., Ltd.	1,647	-
	Others	616	3,661
	Subsidiary	226	5,970
		$ 11,351	$ 21,520

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

(f) Acquisition of property, plant and equipment

	Proceeds from Acquisition
Related Party Category/Name	2025	2024
Associates
Other Equipment	$ 1,950	$ 1,050

(g) Acquisition of other assets

	Proceeds from Acquisition
Related Party Category/Name	2025	2024
Associates
LEALEA Technology Co., Ltd.
Computer software	$ 125	$ 480

(h) Disposal of property, plant, and equipment

		Proceeds from Disposal		Disposal (Loss) Profits
Item	Related Party Category/Name	2025	2024	2025	2024
Transportation	Subsidiary	$ -	$ 60	$ -	$ 60
Equipment	Other related parties	2,150	-	308	-
		$ 2,150	$ 60	$ 308	$ 60

(i) Disposal of other assets

		Proceeds from Disposal		Disposal (Loss) Profits
Item	Related Party Category/Name	2025	2024	2025	2024
Computer software	Subsidiary	$ 146	$ -	$ -	$ -

(j) Lease arrangement

Related Party Category/Name	December 31, 2025	December 31, 2024
Acquisition of right-of-usd assets
Associates
LI PENG Enterprise Co., Ltd.	$ 60,064	$ -
Line item	Related Party Category/Name	2025
---	---	---
Lease	Associates- LI PENG Enterprise	$ 1,714
liabilities-current	Co., Ltd
Lease	Associates- LI PENG Enterprise	57,368
liabilities-noncurrent	Co., Ltd
		$ 59,082
Related Party Category/Name	2025	2024
---	---	---
Interest expense
Associates
LI PENG Enterprise Co., Ltd.	$ 761	$ -
Lease expense
---	---
Associates
LI PENG Enterprise Co., Ltd.	$ 1,743

In June 2025, the Company entered into lease agreements with a related party, LI.PENG a Enterprise Co., Ltd., for land and buildings, with lease terms of 35 years and 15 years, respectively. The lease payments were determined with reference to the rental levels of similar assets, and fixed lease payments are made monthly in accordance with the lease agreements.

Lease expenses include expenses for short-term leases and leases of low-value assets, as well as variable lease payments that do not depend on an index or a rate. The total future lease payments for short-term leases and leases of low-value assets are as follows:

	December 31, 2025	December 31, 2024
Total future lease payments	$ 80,534	$ -

(k) Advance loans to related parties

	December 31, 2025
	Highest balance	Balance, end of year	Interest range(%)	Interest income	Interest receivable
Subsidiary PT.
INDONESIA
LIBOLON
FIBER
SYSTEM	$ 933,171	$ 716,698	2.45824~2.55	$ 18,899	$ 1,128
Other related parties
BLOOMING
Development
Co., Ltd.	450,000	450,000	2.825	12,503	1,080
Eton
Petrochemical
Co., Ltd.	398,460	396,018	2.53032~2.5721	7,337	864
	$ 1,781,631	$ 1,562,716		$ 38,739	$ 3,072
	December 31, 2024
---	---	---	---	---	---
	Highest balance	Balance, end of year	Interest range(%)	Interest income	Interest receivable
Subsidiary PT.
INDONESIA
LIBOLON
FIBER
SYSTEM	$ 896,440	$ 896,440	2.55~3.1	$ 21,212	$ 1,944
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
	$ 1,697,780	$ 1,346,440		$ 34,318	$ 3,097

The Company provides short-term loans to associates and other related parties. The interest rate range is similar to the market interest rate.

(l) Advance loans payable to related parties

	December 31, 2025
	Highest balance	Balance, end of year	Interest range( % )	Interest expense	Interest payable
Subsidiary
LI ZAN
Investment Co., Ltd.	$ 35,000	$ -	1.83032~1.85957	$ 505	$ 10
LI HAO
Investment Co., Ltd.	65,000	-	1.83032~1.85957	1,069	27
Associates
LI MAO
Investment Co., Ltd.	79,000	-	1.83919~1.87812	977	18
LI XING
Investment Co., Ltd.	74,000	-	1.83919~1.87812	1,041	24
HONG XING
Investment Co., Ltd.	60,000	-	1.83919~1.87812	916	22
	$ 313,000	$ -		$ 4,508	$ 101
	December 31, 2024
	Highest balance	Balance, end of year	Interest range( % )	Interest expense	Interest payable
Subsidiary
LI ZAN
Investment Co., Ltd.	$ 39,000	$ 35,000	1.69333~1.87226	$ 290	$ 9
LI HAO
Investment Co., Ltd.	68,000	65,000	1.69333~1.87226	1,061	17
Associates
LI MAO
Investment Co., Ltd.	79,000	79,000	1.69002~1.87844	605	28
LI XING
Investment Co., Ltd.	75,000	74,000	1.69002~1.87844	1,178	27
HONG XING
Investment Co., Ltd.	60,000	60,000	1.69002~1.87844	942	21
	$ 321,000	$ 313,000		$ 4,076	$ 102

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

(m) Long-term receivables

	December 31, 2025/2025
Associates	Current	Noncurrent	Interest Income
LI LING Film Co., Ltd.	$ 9,372	$ 397,168	$ 7,279

December 31, 2024/2024

Associates	Current	Noncurrent	Interest Income
LI LING Film Co., Ltd.	$ 9,208	$ 406,541	$ 7,440

(n) Others

Rental Income	2025	2024
Subsidiary	$ 13,775	$ 7,516
Associates
LI PENG Enterprise Co., Ltd.	26,783	28,278
Others	7,867	11,119
Other related parties	555	563
	$ 48,980	$ 47,476

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

Rent Expense	2025	2024
Associates
LI PENG Enterprise Co., Ltd.	$ 7,883	$ 7,709

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

Shipping Expense	2025	2024
Associates	$ 6,995	$ 11,450
Information Service Fee	2025	2024
Associates
LEALEA Technology Co., Ltd.	$ 19,016	$ 18,527
Interest Income(Guarantee fee income)	2025	2024
Subsidiary.	$ 372	$ -
Other Income	2025	2024
Subsidiary	$ 72	$ 549
Associates	4,099	2,741
Other related parties	38	106
	$ 4,209	$ 3,396
Fuel Costs—Coal	2025	2024
Subsidiary
LEA JIE Energy Co., Ltd.	$ 27,908	$ 63,197

69 -

Service Fee – Coal Processing Fee	2025	2024
Subsidiary
LEA JIE Energy Co., Ltd.	$ 762	$ 1,143
Consumables – Public Fluid	2025	2024
Associates
LI PENG Enterprise Co., Ltd	$ 34,469	$ 40,247
Processing Costs	2025	2024
Associates
LI PENG Enterprise Co., Ltd	$ 3,219	$ 4,831

(0) Compensation of key management personnel

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

	2025	2024
Short-term employee benefits	$ 20,252	$ 24,316
Post-employment benefits	-	213
	$ 20,252	$ 24,529

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.

(p) Transactions with other related parties

Related Party Category/Name	Item	Amount of Signed and Unfinished Contracts (Untaxed)	Balance of Prepayments for Equipment
Associates		December 31, 2025	December 31, 2025
LEALEA Technology Co., Ltd.	Software	$ 355	$ -
		Amount of Signed and Unfinished Contracts (Untaxed)	Balance of Prepayments for Equipment
Related Party Category/Name	Item	December 31, 2024	December 31, 2024
Associates
LEALEA Technology Co., Ltd.	Software	$ 320	$ -

(q) Inventories

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

(r) Provide guarantee

The Company's long-term and short-term loans as of December 31, 2025 and 2024 are jointly and severally guaranteed by Mr. KUO, SHAO-YI, Chairman of the Board of Directors of the Company. Effective September and October 2024, the Company has assumed the role of joint guarantor for certain loans of LI LING Film Co., Ltd and LEA JIE ENERGY Co., Ltd., respectively.

PLEDGED ASSETS

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

	December 31, 2025	December 31, 2024
Property, plant and equipment (Note 11)	$ 2,317,580	$ 2,361,167
Long-term receivables (Note )	382,165	396,248
Investment property(Note 13)	278,020	278,335
	$ 2,977,765	$ 3,035,750

(Note) The mortgage amount is disclosed to be the book value of the fixed assets of LI LING Film Co., Ltd. Please refer to Note 11 for the transaction details.

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, 2024, the Company still has amounts available under issued but unused letters of credit, illustrated as follows:

Unit: Foreign Currencies (In Thousands)

USD

December 31, 2024

$ 274

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:

Unit: Foreign currencies/New Taiwan Dollars In Thousands

	December 31, 2025			December 31, 2024
	Foreign Currency	Exchange Rate	Carrying Amount	Foreign Currency	Exchange Rate	Carrying Amount
Foreign Currency Assets
Monetary items
USD	$ 44,422,088	31.43 (USD: NTD)	$ 1,396,186	$ 48,735,250	32.785 (USD: NTD)	$ 1,597,785
RMB	3,990	4.496 (RMB: NTD)	18	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
Derivative financial instruments USD	- (Notional Amount)	31.43 (USD: NTD)	-	25,000,000 (Notional Amount)	32.785 (USD: NTD)	7,838
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
Foreign Currency Liabilities
Monetary items
USD	1,308,367	31.43 (USD: NTD)	41,122	1,469,301	32.785 (USD: NTD)	48,171
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$ 136,885 thousand and profit NT$ 373,545 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.

27. ADDITIONAL DISCLOSURES

(a) Following are the additional disclosures required by the Securities and (b) Futures Bureau for the Company:

(1) Financings provided: See Table 1 attached.

71 -

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

(3) Marketable securities held (excluding investments in subsidiaries and associates and joint venture equity): 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.

(b) Related information on investee companies: See Table 6 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.

28. OPERATING SEGMENTS INFORMATION

The Company has disclosed operating segments information in the consolidated financial statements, so the relevant information won't be disclosed in parent company only financial statements again.

LEALEA ENTERPRISE CO., LTD.

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)	Transaction Amounts (Note 5)	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.	P.T. INDONESIA LIBOLON FIBER SYSTEM	Receivable of advance loans to related parties	Yes	$ 950,000	$ 900,000	$ 716,698	2.45824%~3.1%	2	$ -	Operating capital	$ -	-	$ -	$ 958,711	$ 3,834,844
0	LEALEA Enterprise Co., Ltd.	Eton Petrochemical Co., Ltd.	Receivable of advance loans to related parties	Yes	800,000	800,000	396,018	2.33751%~3.1%	2	-	Operating capital	-	-	-	〃	〃
0	LEALEA Enterprise Co., Ltd.	BLOOMING Development Co., Ltd.	Receivable of advance loans to related parties	Yes	900,000	450,000	450,000	2.825%	2	-	Operating capital	-	-	-	〃	〃
0	LEALEA Enterprise Co., Ltd.	Eton Petrochemical International Co., Ltd.	Receivable of advance loans to related parties	Yes	125,000	125,000	-	2.53053%~2.53355%	2	-	Operating capital	-	-	-	〃	〃

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 the financing limits for each borrowing Company as 10% of the shareholders' equity of LEALEA Enterprise Co., Ltd. and the financing company's total financing amount limits as 40% of the shareholders' equity of LEALEA Enterprise 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.

LEALEA ENTERPRISE CO., LTD.

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.	LI LING Film Co., Ltd.	2	$ 1,917,422	$ 520,000	$ 520,000	$ 299,867	$ -	5.43%	$ 3,834,844	Y	N	N
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

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.

Note2: The following code represents the relationship with the company:
1. A company with which it does business.
2. A company in which the public company directly and indirectly holds more than 50 percent of the voting shares.
3. A company that directly and indirectly holds more than 50 percent of the voting shares in the public company.
4. A company in which the public company holds, directly or indirectly, 90% or more of the voting shares.
5. A company that fulfills its contractual obligations by providing mutual endorsements/guarantees for another company in the same industry or for joint builders for purposes of undertaking a construction project.
6. A company that all capital contributing shareholders make endorsements/guarantees for their jointly invested company in proportion to their shareholding percentages.
7. Companies in the same industry provide among themselves joint and several securities for a performance guarantee of a sales contract for pre-construction homes pursuant to the Consumer Protection Act for each other.

Note3: 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 CO., LTD.

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, 2023
				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.	o	o	1,229,960	21,217	0.01	21,217
	Far EasTone Telecommunications Co., Ltd.	o	o	306,219	27,039	0.01	27,039
	Information Technology Total Services Co., Ltd.	o	o	33,750	1,644	0.12	1,644
	Domestic Mutual Funds
	Franklin Templeton Sinoam Money Market	None	o	-	30,203	-	30,203
	Fubon Money Market Fund	o	o	-	96,928	-	96,928
	Taishin 1699 Money Market Fund	o	o	-	201,409	-	201,409
	Fubon Chi-Hsiang Money Market Fund	o	o	-	78,517	-	78,517
	CTBC Hwa-win Money Market Fund	o	o	-	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.	o	o	6,250	-	0.12	-

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 original acquisition cost or the carrying balance of the amortized cost after deducting the accumulated 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 6"

LEALEA ENTERPRISE CO., LTD.

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%
〃	〃	〃	Purchase	309,863	12%	〃	〃	〃	Notes and Accounts Payables ( 20,947)	( 24%)
〃	P.T. INDONESIA LIBOLON FIBER SYSTEM	Subsidiary	Sales	( 160,588)	( 3%)	〃	〃	〃	Notes and Accounts Receivables 20,149	8%

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.

76 -

LEALEA ENTERPRISE CO., LTD.

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 noncurrent 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.

77 -

LEALEA ENTERPRISE CO., LTD.

TABLE 6

NAMES, LOCATIONS, AND RELATED INFORMATION OF INVESTEES

FOR THE YEAR 2025

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

Investor Company	Investee Company (Note 1, 2)	Location	Main Businesses and Products	Original Investment Amount		Balance as of December 31, 2025			Net Income (Losses) of the Investee (Note 2-2)	Share of Profits/Losses of Investee (Note 2-3)
				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 (R.O.C.)	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 (R.O.C.)	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	284,459	284,643	41,888,517	69.81	75,755	( 164,249)	( 108,803)
	PT. INDONESIA LIBOLON FIBER SYSTEM	Lantai 1 JI. Cideng Barat No. 15, RT.011/RW.001 Kel. Dari Pulo. 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., Fungyuan Township, Changhua County 528011, Taiwan	Waste disposal	-	144,000	-	-	-	( 8,529)	( 4,094)
	LIBOLON Energy Co., Ltd.	No. 38, Gongqu Rd., Fungyuan Township, Changhua County 528011, Taiwan	Electricity-generating enterprise	63,672	-	6,367,200	60.00	70,561	10,818	7,032

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 invested 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 "Investee Company", "Location", "Main Businesses and Products", "Original Investment Amount" and "Balance as of December 31, 2023" 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 investee company. The relationship between each investee company and the public company should also be indicated in the note column, such as subsidiary or second-tier subsidiary.
(2) The "Net Income (Losses) of the Investee" column should be filled in with the current profit and loss amount of each investee company.
(3) The "Share of Profits/Losses of Investee" 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 investee company measured by using the equity method. The rest is not required. When filling in the "current profit and loss of subsidiaries recognized as direct reinvestment" 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.

CONTENTS OF STATEMENTS OF MAJOR ACCOUNTING ITEMS

ITEM	STATEMENT INDEX
MAJOR ACCOUNTING ITEMS IN ASSETS, LIABILITIES AND EQUITY
STATEMENT OF CASH AND CASH EQUIVALENTS	1
STATEMENT OF FINANCIAL ASSETS AT FAIR	2
VALUE THROUGH PROFIT AND LOSS—CURRENT
STATEMENT OF NOTES RECEIVABLE	3
STATEMENT OF ACCOUNTS RECEIVABLE	4,5
STATEMENT OF ADVANCE LOANS TO RELATED PARTIES	Note 23
STATEMENT OF INVENTORIES	6
STATEMENT OF PREPAYMENTS	7
STATEMENT OF OTHER FINANCIAL ASSETS—CURRENT	8
STATEMENT OF FINANCIAL ASSETS AT FAIR VALUE	9
THROUGH PROFIT AND LOSS—NONCURRENT
STATEMENT OF CHANGES IN LONG-TERM EQUITY	10
INVESTMENTS ACCOUNTED FOR USING EQUITY
METHOD
STATEMENT OF CHANGES IN PROPERTY, PLANT AND EQUIPMENT	Note 11
STATEMENT OF CHANGES IN ACCUMULATED DEPRECIATION OF PROPERTY, PLANT AND EQUIPMENT	Note 11
STATEMENT OF CHANGES IN INVESTMENT PROPERTY	Note 13
STATEMENT OF CHANGES IN ACCUMULATED DEPRECIATION OF INVESTMENT PROPERTY	Note 13
STATEMENT OF RIGHT-OF-USE ASSETS	11
STATEMENT OF DEFERRED INCOME TAX ASSETS	Note 19
STATEMENT OF OTHER NONCURRENT ASSETS—OTHER	12
STATEMENT OF SHORT-TERM LOANS	13
STATEMENT OF NOTES PAYABLES	14,15
STATEMENT OF ACCOUNTS PAYABLES	16,17
STATEMENT OF OTHER PAYABLES	18
STATEMENT OF ADVANCE LOANS TO RELATED PARTIES	Note 23
STATEMENT OF CURRENT PORTION OF LONG-TERM LOANS PAYABLE	19
STATEMENT OF OTHER CURRENT LIABILITIES	20
STATEMENT OF LONG-TERM LOANS	21
MAJOR ACCOUNTING ITEMS IN PROFIT OR LOSS
STATEMENT OF NET REVENUE	22
STATEMENT OF COST OF REVENUE	23
STATEMENT OF MARKETING EXPENSES	24
STATEMENT OF GENERAL AND ADMINISTRATIVE EXPENSES	25
STATEMENT OF RESEARCH AND DEVELOPMENT EXPENSES	26
STATEMENT OF OTHER INCOME AND EXPENSES, NET	Note 18
STATEMENT OF LABOR, DEPRECIATION, DEPLETION, AND AMORTIZATION BY FUNCTION	27

79 -

LEALEA ENTERPRISE CO., LTD.
STATEMENT 1
STATEMENT OF CASH AND CASH EQUIVALENTS
FOR THE YEAR ENDED DECEMBER 31, 2025
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Item	Description	Amount
Cash on hand		$ 372
Demand deposits		9,814
Checking deposits		118,761
Foreign currency deposits	USD6,330,303；EUR1,259；JPY4,179；CNY3,933	199,026
		$ 327,973

Note: Exchange rate at the end of December 31, 2025

USD : NT=1 : 31.43

EUR: NT=1:36.9

JPY: NT=1:0.2008

CNY: NT=1:4.496

80 -

LEALEA ENTERPRISE CO., LTD.
STATEMENT 2
STATEMENT OF FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND LOSS – CURRENT
FOR THE YEAR ENDED DECEMBER 31, 2025
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Name of Financial Products	Description	Shares	Par Value (NT$)	Stocks or Bonds		Cumulative Impairment	Fair Value		Collateral
				Total Value	Acquisition Cost		Unit Price (NT$)	Total Amount
Trade-Van Information Service Corp.	Listed stocks	427,675	10	$ 4,277	$ 33,389	$ -	95	$ 40,629	Nil
KGI Financial Holding Co., Ltd.	Listed stocks	1,229,960	10	12,300	3,395	-	17.25	21,217	〃
Far EasTone Telecommunications Co., Ltd. (Note 1)	Listed stocks	306,219	10	30,622	-	-	88.3	27,039	〃
Information Technology Total Services Co., Ltd. (Note 2)	Over-The-Counter (OTC) stocks	33,750	10	338	-	-	48.7	1,644	〃
Franklin Templeton Sinoam Money Market	Domestic Mutual Funds	2,758,494	-	-	30,000	-	10.949	30,203	〃
Fubon Money Market Fund	Domestic Mutual Funds	6,170,378	-	-	96,000	-	15.7087	96,928	〃
Taishin 1699 Money Market Fund	Domestic Mutual Funds	14,016,532	-	-	200,000	-	14.3694	201,409	〃
Fubon Chi-Hsiang Money Market Fund	Domestic Mutual Funds	4,735,825	-	-	78,000	-	16.5793	78,517	〃
CTBC Hwa-win Money Market Fund	Domestic Mutual Funds	5,529,253	-	-	64,000	-	11.649	64,410	〃
					$ 504,784	$ -		$ 561,996

Note 1: The original acquisition cost of Asia Pacific Telecom Co., Ltd. is NT$50,000 thousand, which has been listed for impairment losses in 2006. The company conducted a capital reduction on November 8, 2019 for covering accumulated deficits. The stock exchange date is January 17, 2020. The cost after the capital reduction was NT$ 32,772 thousand and the market price was calculated based on the capital reduction ratio. Asia Pacific Telecom merged with Far EasTone Telecommunications on December 15, 2023, so the name of the financial product was changed from Asia Pacific Telecom to Far EasTone Telecommunications.
Note 2: Information Technology Total Services Co., Ltd. was acquired after the closure of liquidation of Hua-Li-Yi Ventures invested in previous years.
Note 3: China Development Financial Holding Corp. announced on September 1, 2024 that its company name was changed to KGI Financial Holding Co., Ltd..

81 -

LEALEA ENTERPRISE CO., LTD.
STATEMENT 3
STATEMENT OF NOTES RECEIVABLE
FOR THE YEAR ENDED DECEMBER 31, 2025
(Amounts in Thousands of New Taiwan Dollars)

Client Name	Description	Amount
TUNG DA SHEN CO., LTD.	General business	$ 3,490
YU SHENG CO., LTD.	〃	2,690
KVAN CHI
INTERNATIONAL CO.,
LTD.	〃	2,210
YU YUANG TEXTILE CO.,
LTD.	〃	1,730
AXROMA TECHNICAL
TEXTILE CO., LTD.	〃	1,486
SUN SHINE TEXTILE
ENTERPRISE CO., LTD.	〃	1,352
TAIG CHEIN TEXTILE CO.,
LTD.	〃	1,351
Others (Note)	〃	7,077
		21,386
Less: Allowance for bad debts		214
		$ 21,172

Note: The amount of individual client included in others does not exceed 5% of the account balance.

82 -

LEALEA ENTERPRISE CO., LTD.
STATEMENT 4
STATEMENT OF ACCOUNTS RECEIVABLE
FOR THE YEAR ENDED DECEMBER 31, 2025
(Amounts in Thousands of New Taiwan Dollars)

Client Name	Description	Amount
FILS PROMPTEX YARNS INC.	General business	$ 31,918
HONMYUE ENTERPRISE CO., LTD.	〃	20,528
LONG JOHN ENTERPRISE CO., LTD.	〃	9,556
Porex Technologies Reinbek GmbH,Filtration Group	〃	9,269
Others (Note)	〃	84,602
		155,873
Less: Allowance for bad debts		1,661
		$ 154,212

Note: The amount of individual client included in others does not exceed 5% of the account balance.

83 -

LEALEA ENTERPRISE CO., LTD.
STATEMENT 5
STATEMENT OF ACCOUNTS RECEIVABLES FROM RELATED PARTIES
FOR THE YEAR ENDED DECEMBER 31, 2025
(Amounts in Thousands of New Taiwan Dollars)

Client Name	Description	Amount
LI PENG Enterprise Co., Ltd.	General business	$ 54,848
PT. INDONESIA LIBOLON
FIBER SYSTEM	„	20,149
Others (Note)	„	2,183
		$ 77,180

Note: The amount of individual client included in others does not exceed 5% of the account balance.

84 -

LEALEA ENTERPRISE CO., LTD.
STATEMENT 6
STATEMENT OF INVENTORIES
FOR THE YEAR ENDED DECEMBER 31, 2025
(Amounts in Thousands of New Taiwan Dollars)

Item	Cost	Market Value
Textile
Raw materials	$ 177,227	$ 139,011
Supplies	79,032	46,928
Work in process	11,398	11,208
Finished goods	807,939	725,874
Inventory in transit	78,327	78,327
Less: Allowance for loss due to market price decline	( 152,575)	-
	1,001,348	1,001,348
Construction
Premises under construction	1,189,395	1,189,395
Land for construction	377,782	377,782
Parking spaces for sale	12,968	-
Less: Allowance for loss due to market price decline	( 12,968)	-
	1,567,177	1,567,177
	$ 2,568,525	$ 2,568,525

85 -

LEALEA ENTERPRISE CO., LTD.
STATEMENT 7
STATEMENT OF PREPAYMENTS
FOR THE YEAR ENDED DECEMBER 31, 2025
(Amounts in Thousands of New Taiwan Dollars)

Item	Description	Amount
Other prepaid expenses	Prepaid ocean freight, etc.	$ 11,116
Prepaid insurance expenses		8,598
Other prepayments	Receipts under custody	2,252
Deferred expenses		12,669
Prepayment of land		10,500
Office supplies		509
		$ 45,644

86 -

LEALEA ENTERPRISE CO., LTD.
STATEMENT 8
STATEMENT OF OTHER FINANCIAL ASSETS – CURRENT
FOR THE YEAR ENDED DECEMBER 31, 2025
(Amounts in Thousands of New Taiwan Dollars)

Item	Description	Amount
Long-term receivables due within one year	LI LING Film Co., Ltd.	9,372
Other receivables	Rent receivable and payment for leftover tailings	11,840
Interest receivable		3,121
		$ 24,333

87 -

LEALEA ENTERPRISE CO., LTD.
STATEMENT 9
STATEMENT OF FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND LOSS – NONCURRENT
FOR THE YEAR 2025
(Amounts in Thousands of New Taiwan Dollars)

Company Name	Balance, January 1, 2024		Additions in Investment		Decrease in Investment		Balance, December 31, 2024
	Shares	Amount	Shares	Amount	Shares	Amount	Shares	Amount	Collateral
The Techgains Pan-Pacific Corporation	150,000	$ 373	-	$ -	-	$ -	150,000	$ 373	Nil
Book4U Co., Ltd.	6,250	-	-	-	-	-	6,250	-	〃
		$ 373		$ -		$ -		$ 373

88 -

LEALEA ENTERPRISE CO., LTD.
STATEMENT 10
STATEMENT OF CHANGES IN LONG-TERM EQUITY INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD
FOR THE YEAR 2025
(Unit Price Per Share Is New Taiwan Dollars. The Rest Is Amounts in Thousands of New Taiwan Dollars)

Investees	Balance, January 1, 2025		Additions in Investment		Decrease in Investment		Investment (loss) profit	Balance, December 31, 2025			Market Value or Net Assets Value (Note)
	Shares	Amount	Shares	Amount	Shares	Amount		Shares	( % )	Amount	Unit Price (NTS)	Total Amount	Collateral
Listed company at stock exchange market
LI PENG Enterprise Co., Ltd.	158,866,853	$ 1,645,303	16,482,000	$ 103,183	-	$ 26,614	($ 169,933)	175,348,853	19.27	$ 1,551,939	5.4	$ 946,884	Nil
Listed company at over-the-counter market
Rich Development Co., Ltd.	53,395,090	927,022	-	-	-	15,433	8,243	53,395,090	6.97	919,832	7.9	421,821	Nil
Privately held companies
LEA JIE Energy Co., Ltd.	21,000,000	243,974	-	-	-	20,800	6,985	21,000,000	70.00	230,159	10.72	225,210	Nil
LI HAO Investment Co., Ltd.	40,356,000	462,337	-	-	-	11,001	( 22,534)	40,356,000	53.38	428,802	11.01	444,418	Nil
LI ZAN Investment Co., Ltd.	24,460,000	271,549	-	-	-	10,623	( 26,336)	24,460,000	53.17	234,590	10.41	254,900	Nil
LI XING Investment Co., Ltd.	37,600,000	385,793	-	-	-	60,148	4,263	37,600,000	47.00	329,908	8.78	330,084	Nil
HONG XING Investment Co., Ltd.	23,304,000	303,826	-	-	-	66,028	514	23,304,000	46.98	238,312	10.24	238,521	Nil
LI MAO Investment Co., Ltd.	35,244,000	394,199	-	-	-	89,723	3,143	35,244,000	46.62	307,619	8.73	307,619	Nil
LIBOLON Enterprise Co., Ltd.	5,000,000	13,480	-	-	-	-	1,875	5,000,000	100.00	15,355	3.07	15,355	Nil
LEALEA Technology Co., Ltd.	17,652,243	294,875	3,353,926	-	-	26,478	82,842	21,006,169	28.51	351,239	16.73	351,492	Nil
FU LI Express Co., Ltd.	3,500,000	45,751	-	-	-	2,100	1,016	3,500,000	25.00	44,667	12.76	44,667	Nil
Pt. Indonesia LIBOLON Fiber System	16,170,000	1,323,190	-	-	-	96,324	( 64,506)	16,170,000	70.00	1,162,360	72.23	1,165,494	Nil
LI LING Film Co., Ltd.	27,906,940	211,851	13,981,577	139,816	-	167,109	( 108,803)	41,888,517	69.81	75,755	5.80	242,864	Nil
REMONDIS LEALEA Enterprise Co., Ltd.	14,400,000	140,685	-	-	14,400,000	136,591	( 4,094)	-	-	-	-	-	Nil
LIBOLON Energy Co., Ltd.	-	-	6,367,200	63,672	-	143	7,032	6,367,200	60.00	70,561	11.10	70,020
		$ 6,663,835		$ 306,671		$ 729,115	($ 280,293)			$ 5,961,098		$ 5,059,349

Note: The market value refers to the unit price calculated by closing price as of December 31, 2024. The net asset value is calculated mainly based on the financial statements of the investee and the shareholding ratio of the Company.

89 -

LEALEA ENTERPRISE CO., LTD.
STATEMENT 11
STATEMENT OF RIGHT-OF-USE ASSETS
FOR THE YEAR 2025
(Amounts in Thousands of New Taiwan Dollars)

Item	Balance, January 1, 2025	Additions	Deductions	Balance, December 31, 2025
Cost:
Land	$ 1,059	$ 50,031	$ 985	$ 50,105
Buildings	0	14,277	-	14,277
	$ 1,059	$ 64,308	$ 985	$ 64,382
Accumulated depreciation:
Land	$ 992	$ 938	$ 985	$ 945
Buildings	0	555	-	555
	$ 992	$ 1,493	$ 985	$ 1,500

90 -

LEALEA ENTERPRISE CO., LTD.
STATEMENT 12
STATEMENT OF OTHER NONCURRENTASSETS – OTHER
FOR THE YEAR ENDED DECEMBER 31, 2025
(Amounts in Thousands of New Taiwan Dollars)

Item	Description	Amount
Refundable deposits		$ 5,699
Long-term receivables	LI LING Film Co., Ltd.	397,168
Other noncurrent assets – Other		6,408
Overdue receivables		18,099
Less: Allowance for bad debts		( 18,099)
		$ 409,275

91 -

LEALEA ENTERPRISE CO., LTD.
STATEMENT 13
STATEMENT OF SHORT-TERM LOANS
FOR THE YEAR ENDED DECEMBER 31, 2025
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Bank Name	Amount of Loan	Description	Contract Period	Interest Rates (%)	Loan Commitments	Collateral
Bank loans
Mega International Commercial Bank	$ 900,000	Secured Loans	2025.12.17~2026.01.16	1.83%	$ 900,000	Real estate at No. 38 Gongye Road and No. 16 Gongqu 7th Road, Fangyuan Township, Changhua County
Bank of Taiwan, Gong Guan Branch	470,000	Secured Loans	2025.08.25~2026.02.10	1.85%	470,000	Changhua No.3 Factory, Land No. 96-100, Yujin Section, Changhua, LI LING Factory
Bank of Taiwan, Gong Guan Branch	100,000	Secured Loans	2025.11.28~2026.01.05	1.85%	100,000	Zhongli No.1 and No.3 Factory
Bank of Taiwan, Gong Guan Branch	300,000	Secured Loans	2025.12.26~2026.01.05	1.85%	300,000	Zhongli No.1 and No.3 Factory
Bank of Taiwan, Gong Guan Branch	100,000	Secured Loans	2025.09.04~2026.02.10	1.85%	100,000	Changhua No.3 Factory, Land No. 96-100, Yujin Section, Changhua, LI LING Factory
Bank of Taiwan, Gong Guan Branch	210,000	Secured Loans	2025.08.26~2026.02.10	1.85%	210,000	Changhua No.3 Factory, Land No. 96-100, Yujin Section, Changhua, LI LING Factory
Bank of Taiwan, Gong Guan Branch	220,000	Secured Loans	2025.08.29~2026.02.10	1.85%	220,000	Changhua No.3 Factory, Land No. 96-100, Yujin Section, Changhua, LI LING Factory
EXPORT-IMPORT BANK OF THE REPUBLIC OF CHINA	200,000	Credit Loans	2025.12.15~2026.12.15	1.5624%	200,000	Nil
EXPORT-IMPORT BANK OF THE REPUBLIC OF CHINA	250,000	Credit Loans	2025.12.15~2026.12.15	2.0909%	250,000	Nil
First Commercial Bank Songjiang Branch	200,000	Credit Loans	2025.12.03~2026.01.02	1.80%	200,000	Nil
First Commercial Bank Songjiang Branch	600,000	Secured Loans	2025.12.12~2026.01.12	1.78%	600,000	Real estate at No. 6 Gongqu 9th Road, Fangyuan Township, Changhua County
LANDBANK OF TAIWAN	105,000	Credit Loans	2025.11.25~2026.01.23	1.90%	105,000	Nil
Yuanta Securities Co., Ltd., Ban Qiao Branch	300,000	Credit Loans	2025.12.16~2026.03.16	1.84%	300,000	Nil
	$ 3,607,000

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LEALEA ENTERPRISE CO., LTD.
STATEMENT 14
STATEMENT OF NOTES PAYABLES
FOR THE YEAR ENDED DECEMBER 31, 2025
(Amounts in Thousands of New Taiwan Dollars)

Vendor Name	Description	Amount
FAN YUAN CUSTOMS
BROKER CO., LTD.	General Business	$ 6

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LEALEA ENTERPRISE CO., LTD.
STATEMENT 15
STATEMENT OF NOTES PAYABLES TO RELATED PARTIES
FOR THE YEAR ENDED DECEMBER 31, 2025
(Amounts in Thousands of New Taiwan Dollars)

Vendor Name	Description	Amount
FU LI Express Co., Ltd.	General Business	$ 463

LEALEA ENTERPRISE CO., LTD.
STATEMENT 16
STATEMENT OF ACCOUNTS PAYABLES
FOR THE YEAR ENDED DECEMBER 31, 2025
(Amounts in Thousands of New Taiwan Dollars)

Vendor Name	Description	Amount
Hung Chou Fiber Industrial Co., Ltd.	General Business	$ 28,313
Chou Chin Industrial CO.,LTD.	〃	14,299
YUNG IEE GREEN MATERIAL CO., LTD.	〃	8,290
TONG-SHIN GREEN POWER CO., LTD.	〃	4,850
Avient Taiwan Co., Ltd.	〃	3,363
Others (Note)	〃	6,272
		$ 65,387

Note: The amount of individual client included in others does not exceed 5% of the account balance.

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LEALEA ENTERPRISE CO., LTD.

STATEMENT 17

STATEMENT OF ACCOUNTS PAYABLES TO RELATED PARTIES

FOR THE YEAR ENDED DECEMBER 31, 2025

(Amounts in Thousands of New Taiwan Dollars)

Vendor Name	Description	Amount
LI PENG Enterprise Co., Ltd.	General Business	$ 20,947
Others (Note)	“	340
		$ 21,287

Note: The amount of individual client included in others does not exceed 5% of the account balance.

LEALEA ENTERPRISE CO., LTD.
STATEMENT 18
STATEMENT OF OTHER PAYABLES
FOR THE YEAR ENDED DECEMBER 31, 2025
(Amounts in Thousands of New Taiwan Dollars)

Item	Description	Amount
Salary and bonus payable		$ 102,082
Electricity bill payable		40,173
Unused vacation bonus		21,705
Other notes payable		4,754
Other payable (Note)		139,405
		$ 308,119

Note: The amount of individual client included in other payable does not exceed 5% of the account balance.

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LEALEA ENTERPRISE CO., LTD.
STATEMENT 19
STATEMENT OF STATEMENT OF CURRENT PORTION OF LONG-TERM LOANS PAYABLE
FOR THE YEAR ENDED DECEMBER 31, 2025
(Amounts in Thousands of New Taiwan Dollars)

Item	Description	Amount
The Export-Import Bank of the Republic of China	Current portion of long-term loans payable	$ 162,500
Bank of Taiwan	„	140,000
KGI Bank Co., Ltd.	„	13,867
		$ 316,367

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LEALEA ENTERPRISE CO., LTD.
STATEMENT 20
STATEMENT OF OTHER CURRENT LIABILITIES
FOR THE YEAR ENDED DECEMBER 31, 2025
(Amounts in Thousands of New Taiwan Dollars)

Item	Description	Amount
Advance sales receipt		$ 77,369
Others (Note)		1,726
		$ 79,095

Note: The amount of individual client included in other payable does not exceed 5% of the account balance.

LEALEA ENTERPRISE CO., LTD.
STATEMENT 21
STATEMENT OF LONG-TERM LOANS
FOR THE YEAR ENDED DECEMBER 31, 2025
(Amounts in Thousands of New Taiwan Dollars)

Item	Description	Amount	Contract Period	Interest Rates (%)	Collateral
The Export-Import Bank of the Republic of China	Unsecured loans with interests paid once every three months	$ 50,000	115.03.08	2.3362%	—
The Export-Import Bank of the Republic of China	Unsecured loans with interests paid once every three months	187,500	117.06.16	2.3362%	—
The Export-Import Bank of the Republic of China	Unsecured loans with interests paid once every three months	150,000	117.03.17	0.9852%	—
KGI Bank	Unsecured loans with interest paid once every month	104,000	119.01.15	1.92%	—
KGI Bank	Unsecured loans with interest paid once every month	600,000	116.11.25	2.2%	—
Bank of Taiwan	Secured Loans with interest paid once every month	490,000	118.02.24	2.2199%	First Plant of Zhong Li
Chang Hwa Bank	Secured Loans with interest paid once every three months	500,000	117.12.24	2.378%	Taipei office and real estate at No.16 Gongqu 7th Road, Fangyuan Township, Changhua County
	Less: Repayments for current portion of long-term loans	( 316,367)
		$ 1,765,133

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LEALEA ENTERPRISE CO., LTD.
STATEMENT 22
STATEMENT OF NET REVENUE
FOR THE YEAR 2025
(Amounts in Thousands of New Taiwan Dollars)

Item	Quantity	Amount
Polyester fully oriented yarn and polyester chip	6,307 ton	$ 342,445
Polyester draw textured yarn	44,864 ton	3,411,714
Polyester solid state PET chip	28,712 ton	814,527
Others (including raw material, steam, electricity, etc.)	Note	40,905
		$ 4,609,591

Note: A single account contains products calculated in different units and only the amount is disclosed.

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LEALEA ENTERPRISE CO., LTD.
STATEMENT 23
STATEMENT OF COST OF REVENUE
FOR THE YEAR 2025
(Amounts in Thousands of New Taiwan Dollars)

Item	Amount
Direct raw material
Balance, beginning of year	$ 309,400
Add: Raw material purchased	1,616,692
Inventory in transit, beginning of year	4,038
Less: Raw material, end of the year	( 177,227)
Inventory in transit, end of year	( 2,205)
Purchase allowance	( 39)
Other warehouse-out	( 16,563)
Requisition by departments	( 6,003)
	1,728,093
Direct labor	331,263
Manufacturing expenses	1,700,447
Manufacturing cost	3,759,803
Add: Work in process, beginning of year	17,654
Less: Work in process, end of year	( 11,398)
Others	( 4,972)
Costs of Finished Goods	3,761,087
Add: Finished goods, beginning of year	1,139,053
Inventory in transit, beginning of year	109,385
Finished goods purchased	502,920
Transferred gross profit	8
Less: Requisition by departments	( 5,645)
Finished goods, end of year	( 807,939)
Inventory in transit, end of year	( 76,025)
Income of leftover tailings sales	( 7,929)
Gain from price recovery of inventory	( 38,632)
Other warehouse-out	( 208)
Total	$ 4,576,075

102 -

LEALEA ENTERPRISE CO., LTD.
STATEMENT 24
STATEMENT OF MARKETING EXPENSES
FOR THE YEAR 2025
(Amounts in Thousands of New Taiwan Dollars)

Item	Amount
Transportation expense	$ 112,986
Other business expenses	7,974
Others (Note)	18,144
	$ 139,104

Note: The amount of individual client included in other payable does not exceed 5% of the account balance.

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LEALEA ENTERPRISE CO., LTD.
STATEMENT 25
STATEMENT OF GENERAL AND ADMINISTRATIVE EXPENSES
FOR THE YEAR 2025
(Amounts in Thousands of New Taiwan Dollars)

Item	Amount
Salary and Wages	$ 68,223
Depreciation expense	9,729
Service fee	8,921
Insurance fee	6,831
Others (Note)	22,510
	$ 116,214

Note: The amount of individual client included in other payable does not exceed 5% of the account balance.

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LEALEA ENTERPRISE CO., LTD.
STATEMENT 26
STATEMENT OF RESEARCH AND DEVELOPMENT EXPENSES
FOR THE YEAR 2025
(Amounts in Thousands of New Taiwan Dollars)

Item	Amount
Salary and Wages	$ 13,049
Raw material	12,225
Processing expenses	3,664
Service fee	2,430
Depreciation expense	2,564
Others (Note)	7,452
	$ 41,384

Note: The amount of individual client included in other payable does not exceed 5% of the account balance.

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LEALEA ENTERPRISE CO., LTD.
STATEMENT 27
STATEMENT OF LABOR, DEPRECIATION, DEPLETION, AND AMORTIZATION BY FUNCTION
FOR THE YEARS 2025 AND 2024
(Amounts in Thousands of New Taiwan Dollars)

	2025			2024
	Classified as Costs of Revenue	Classified as Operating Expenses	Total	Classified as Costs of Revenue	Classified as Operating Expenses	Total
Labor cost
Salary and bonus	$ 420,210	$ 77,672	$ 497,882	$ 444,730	$ 84,756	$ 529,486
Labor and health insurance expenses	54,591	6,334	60,625	51,905	6,579	58,484
Pension fund expenses	21,415	3,871	25,286	20,687	5,409	26,096
Board compensation	-	3,600	3,600	-	7,419	7,419
Other employee benefits	37,253	4,183	41,436	38,790	4,510	43,300
	$ 533,469	$ 95,660	$ 629,129	$ 556,112	$ 108,673	$ 664,785
Depreciation expenses	$ 339,315	$ 12,293	$ 351,608	$ 383,818	$ 12,348	$ 396,166
Amortization expenses	$ 41,522	$ 2,599	$ 44,121	$ 43,277	$ 4,340	$ 47,617

Note 1: As of December 31, 2025 and 2024, the Company had 934 and 957 employees, respectively. There were 7 and 6 non-employee directors respectively.

Note 2:

(2.1) Average labor cost for the year ended December 31, 2025 was NT$675 thousand.

2025 Average Labor Cost = $\frac{\text{“2025 Employee Benefits”} - \text{“Board Compensation”}}{\text{“2025 Employee Quantity”} - \text{“Quantity of Non-Employee Directors”}}$

Average labor cost for the year ended December 31, 2024 was NT$691 thousand.

2024 Average Labor Cost = $\frac{\text{“2024 Employee Benefits”} - \text{“Board Compensation”}}{\text{“2024 Employee Quantity”} - \text{“Quantity of Non-Employee Directors”}}$

(2.2) Average salary and bonus for the year ended December 31, 2025 was NT$537 thousand.

2024 Average Salary and Bonus = $\frac{\text{“2025 Salary and Bonus”}}{\text{“2025 Employee Quantity”} - \text{“Quantity of Non-Employee Directors”}}$

Average salary and bonus for the years ended December 31, 2024 was NT$557 thousand.

2024 Average Salary and Bonus = $\frac{\text{“2024 Salary and Bonus”}}{\text{“2024 Employee Quantity”} - \text{“Quantity of Non-Employee Directors”}}$

(2.3) The average salary and bonus decreased by 3.59% year over year.

2025 Average Salary and Bonus Increase = $\frac{\text{“2025 Average Salary and Bonus”} - \text{“2024 Average Salary and Bonus”}}{\text{“2024 Average Salary and Bonus”}}$

Note 3: The audit committee has been established by the Company that did not appoint any supervisor; therefore there was no compensation to the supervisor.

Note 4: The Company’s compensation policies are as follows:

(4.1) Board of Directors:

According to Article 28 of the Company’s Articles of Incorporation, the compensation to directors shall be no more than 5% of profits before tax of the period, which is calculated prior to the deduction of profit sharing bonus to employees and compensation to directors. However, when the Company has accumulated losses, the reserve shall be retained in advance before allocating the compensation to directors in accordance with the aforementioned proportion.

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(4.2) Executive Officers:

The Company offers competitive compensation package to employee, in order to enhance business performance and assure the executive officers to carry the responsibilities for business performance, and ensures that the competitiveness of the compensation package will motivate the employee to continue to perform for the Company.

(4.3) Employee:

The compensation package offered to employees includes fixed salary and variable bonus, which is for assuring fair pay reflecting internal equity and external competitiveness. According to the Company's Articles of Incorporation, the total amount of profit sharing bonus to employees shall be no less than 2% of annual profits before tax, which is calculated prior to the deduction of profit sharing bonus to employees and compensation to directors. Employee salary is determined by job responsibilities and professional proficiency. The bonuses and employee remuneration were provided in accordance with each employee's comprehensive performance and contribution.

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AI assistant

LEALEA — Audit Report / Information 2025

51807_rns_2026-05-20_c60bdaa6-0192-4c95-8e65-37f68ca055c1.pdf

Authenticity of specific customer sales revenue

Other Matter

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

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

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

c. Classification of Current and Noncurrent Assets and Liabilities

1. Financial Instruments

(1) Financial assets

(1.1) Measurement types

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

(1.2) Impairment of financial Assets and Contract Assets

(1.3) Derecognition of financial assets

(2) Financial liabilities

(2.1) Subsequent assessment

(2.2) Derecognition of financial liabilities

(3) Derivative Financial Instruments

m. Provision for liabilities

Carbon Fee Liability Provision

n. Revenue Recognition

Commodity sales revenue

o. Leases

(1) The Company as lessor

p. Borrowing Costs

q. Government Grants

r. Employee benefits

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION AND UNCERTAINTY

6. CASH AND CASH EQUIVALENTS

7. FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS

8. NOTES AND ACCOUNTS RECEIVABLE

Account Receivable

9. INVENTORIES

10. INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD

11. PROPERTY, PLANT AND EQUIPMENT

12. LEASE ARRANGEMENTS

14. BORROWINGS

15. RETIREMENT BENEFIT PLANS

(a) Defined contribution plans

(b) Defined benefit plans

16. EQUITY

(a) Capital

Common stocks

(b) Capital surplus

18. INCOME FROM CONTINUING OPERATIONS

(a) Interest income

(b) Other income

(c) Other gains and losses

(d) Finance costs

19. INCOME TAX OF CONTINUING OPERATION

21.CAPITAL RISK MANAGEMENT

22.FINANCIAL INSTRUMENTS

23. RELATED PARTY TRANSACTIONS

(a) Name and relationship of related parties

(b) Net revenue

(0) Compensation of key management personnel

(p) Transactions with other related parties

27. ADDITIONAL DISCLOSURES

28. OPERATING SEGMENTS INFORMATION

CONTENTS OF STATEMENTS OF MAJOR ACCOUNTING ITEMS

LEALEA ENTERPRISE CO., LTD.

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LEALEA Audit Report / Information 2025