Stock Code 1447

Li Peng Enterprise Corporation Limited and Subsidiaries

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

Address: 6F., No. 162, Songjiang Road, Taipei City 104, Taiwan

Tel: (02)21002888

§TABLE OF CONTENTS§

ITEM		PAGE	FINANCIAL STATEMENTS NOTE
I.	Cover	1	-
II.	Table of Contents	2	-
III.	Affiliates’ Consolidated Financial Report and Representation Letter	3	-
IV.	Independent Auditor’s Report	4～7	-
V.	Consolidated Balance Sheets	8	-
VI.	Consolidated Statements of Comprehensive Income	9～10	-
VII.	Consolidated Statements of Changes in Equity	11	-
VIII.	Consolidated Statements of Cash Flows	12～14	-
IX.	Consolidated Financial Statements
	1. Company History	15	1
	2. The Authorization of Financial Statements	15	2
	3. Application of New and Revised International Financial Reporting Standards	15～17	3
	4. Summary of Significant Accounting Policies	17～32	4
	5. Critical Accounting Judgments and Key Sources of Estimation, and Uncertainty	32	5
	6. Major Accounting Item Descriptions	33～63	6～28
	7. Trading with Related Parties	63～69	29
	8. Pledged Assets	69	30
	9. Significant Contingent Liabilities and Unrecognized Commitments	69	31
	10. Loss from Major Disasters	-	-
	11. Major Events After Reporting Period	-	-
	12. Others	70～72	32
	13. Other Disclosure
	a. Related information on major transactions	72	33
	b. Related information on reinvestment	72	33
	c. Related information on investments in China	73	33
	14. Segment Information	73～75	34

REPRESENTATION LETTER

According to “Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises”, for the year of 2025 (from January 1, 2025 to December, 2025), the affiliated companies of LI PENG ENTERPRISE CORPORATION LIMITED which should be included when preparing the Consolidated Financial Statements of Affiliated Enterprises are the same as those which shall be included in the Consolidated Financial Statements of the parent and subsidiaries prepared under No.10 of International Financial Reporting Standards, and all of the related information which shall be disclosed in the Consolidated Financial Statements of Affiliated Enterprises had been disclosed in the above Consolidated Financial Statements of the parent and subsidiaries. Therefore, separate Consolidated Financial Statements of Affiliated Enterprises are not prepared.

Very truly yours,

LI PENG ENTERPRISE CORPORATION LIMITED

Kuo, Shao-Yi
Chairman

March 16, 2026

Independent Auditor’s Report

To Li Peng Enterprise Corporation Limited

Opinion

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

In our opinion, based on our audits and the reports of other auditors (please refer to the Other Matter paragraph), the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2025 and 2024, and its consolidated financial performance and consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Basis for Opinion

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

Key Audit Matters

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

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

Occurrence of sales revenue from specific customers of fabric products

The operations of Li Peng Enterprise Co., Ltd. and its subsidiaries are primarily divided into the Nylon Segment, Textile Segment, and Trading Segment. Within the woven product revenue of the Textile Segment, the revenue growth from certain specific customers exceeded overall expectations and significantly deviated from actual industry performance. Consequently, the auditors assessed that the occurrence of sales revenue from these specific customers has a material impact on the consolidated financial statements. Therefore, during the audit for the fiscal year 2025, the occurrence of sales revenue from certain specific customers was identified as a Key Audit Matter. Please refer to Note 4 for the accounting policies and disclosures related to the recognition of sales revenue.

The audit procedures performed by us in response to the aforementioned key audit matter included: understanding and testing the design and operating effectiveness of the key internal controls, and performing substantive tests of details on a sampling basis to confirm that the revenue transactions have indeed occurred.

Other Matter

In the consolidated financial statements for 2025, the financial statements of some investee companies for using the equity method were audited by other auditors. Our opinion, on the consolidated company only financial statements the amounts listed in the financial statements of the investee companies that are treated using the equity method are based on the audit reports of other auditors. As of December 31, 2025 and 2024, the above-mentioned investee companies' investment amounts using the equity method were NT$935,749 thousand and NT$946,246 thousand, respectively, accounting for 5.88% and 5.07% of the total assets, respectively. From January 1 to December 31, 2025 and 2024, the above-mentioned investee companies' share of the comprehensive profit and loss of associated enterprises recognized using the equity method was NT$4,122 thousand and NT$12,272 thousand, respectively, accounting for (0.27%) and (5.38%) of the comprehensive profit and loss of the respective years.

We have also audited the parent company only financial statements of the Company for the years ended December 31, 2025 and 2024 on which we have issued an unmodified plus other matters paragraph opinion.

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

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and the IFRS, IAS, IFRIC, and SIC endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China, and for such internal control as

management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing consolidated financial statements, management's responsibilities also include evaluating the ability of Li Peng Enterprise Co., Ltd. and its subsidiaries to continue as a going concern, disclosing related matters, and adopting the going concern basis of accounting, unless management intends to liquidate Li Peng Enterprise Co., Ltd. and its subsidiaries or cease operations, or has no other feasible alternative to liquidation or cessation of operations.

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

Auditor's Responsibilities for the Audit of the Consolidated Financial Statements

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

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

Identify and assess the risks of material misstatement of the consolidated financial statement, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the 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 consolidated financial statements or revise the audit opinions, if such disclosures are inadequate. Our conclusions are based on the audit evidence obtained up to the date of our
6 -

auditors' report. However, future events or conditions may cause the Company and subsidiaries to cease operations.

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

Based on the matters discussed with the governance unit, we have determined the key audit items for the audit of the consolidated financial statements of Li Peng Enterprise Co., Ltd. and its subsidiaries for the year 2025. We describe these matters in our audit report unless public disclosure of a particular matter is not permitted by law or, in extremely rare circumstances, we decide not to communicate a particular matter in our audit report because such communication could reasonably be expected to have a negative impact that outweighs the public interest that would be enhanced.

The engagement partners on the audit resulting in this auditors' report are Huang, I-min and Hong, Kuo-Tyan.

Deloitte & Touche
Taipei, Taiwan
Republic of China

March 16, 2026

LI PENG ENTERPRISE CORPORATION LIMITED AMD SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

For The Years Ended December 31, 2025 and 2024

(In Thousands of New Taiwan Dollars)

Code	Assets	December 31, 2025		December 31, 2024
		Amount	%	Amount	%
Current Assets
1100	Cash and cash equivalents (Note 4 and 6)	$ 1,441,973	9	$ 1,765,356	10
1110	Financial assets at fair value through profit or loss - current (Note 4 and 7)	485,293	3	234,515	1
1150	Notes receivable, net (Note 4 and 8)	30,483	-	35,006	-
1160	Notes receivable from related parties, net (Note 4 and 29)	15,202	-	27,468	-
1170	Accounts receivable, net (Note 4 and 8)	1,022,506	7	2,638,203	14
1180	Accounts receivable from related parties, net (Note 4 and 29)	90,162	1	116,249	1
1210	Loan to related parties (Note 29)	1,159,575	7	1,135,014	6
1220	Income tax assets (Note 4 and 24)	15,604	-	18,040	-
130X	Inventory (Note 4 and 9)	2,109,338	13	2,500,116	13
1410	Prepayments	61,426	-	152,270	1
1476	Other financial assets - current (Note 4,10,29 and 30)	862,736	6	179,077	1
1479	Other current assets	5,459	-	10,551	-
11XX	Total current assets	7,299,757	46	8,811,865	47
Non-current assets
1510	Financial assets at fair value through profit or loss - non-current (Note 4 and 7)	5,847	-	6,064	-
1517	Financial assets at fair value through other comprehensive income - non-current (Note 4 and 11)	1,197,647	8	1,762,969	10
1550	Investment adjustments for Using Equity Method (Note 4 and 13)	2,582,833	16	2,658,285	14
1600	Property, plant, equipment (Note 4 and 14)	4,100,916	26	4,675,057	25
1755	Right of use asset (Note 4 and 15)	21,078	-	21,434	-
1760	Investment property, net (Note 4 and 16)	40,532	-	-	-
1821	Other intangible assets (Note 4 and 17)	6,149	-	4,242	-
1840	Deferred tax assets (Note 4 and 24)	590,045	4	471,828	3
1915	Prepayment for equipment	61,381	-	232,893	1
1990	Other non-current assets	13,290	-	12,977	-
15XX	Total non-current assets	8,619,718	54	9,845,749	53
1XXX	Total Assets	$ 15,919,475	100	$ 18,657,614	100
Code	Liability and Equity
Current liability
2100	Short-term loan (Note 4 and 18)	$ 3,330,000	21	$ 3,560,000	19
2110	Short-term corporate bonds payable (Note 4 and 18)	-	-	100,000	-
2120	Financial liability at fair value through profit or loss (Note 4 and 7)	6	-	-	-
2150	Notes payable	36,959	-	18,976	-
2160	Notes payable - related parties (Note 29)	2,420	-	3,094	-
2170	Accounts payable	890,092	6	2,081,843	11
2180	Accounts payable - related parties (Note 29)	56,603	1	106,347	1
2219	Other payable (Note 19 and 29)	523,836	3	671,665	4
2220	Loan from related parties (Note 29)	488,018	3	80,000	-
2230	Current tax liabilities (Note 4 and 24)	11,259	-	14,436	-
2250	Current provisions	7,715	-	501	-
2280	Lease liability - current (Note 4 and 15)	2,978	-	2,747	-
2320	Long-term loan due in a year (Note 4 and 18)	146,000	1	-	-
2399	Other current liability	187,454	1	155,253	1
21XX	Total current liabilities	5,683,340	36	6,794,862	36
Non-current liability
2540	Long-term loan (Note 4 and 18)	1,619,000	10	1,690,000	9
2570	Deferred income tax liability (Note 4 and 24)	150,830	1	154,144	1
2580	Lease liability - non-current (Note 4 and 15)	23,019	-	23,718	-
2640	Accrued pension liability, net - non-current (Note 4 and 20)	174,337	1	183,310	1
2670	Other non-current liability	776	-	769	-
25XX	Total non-current liabilities	1,967,962	12	2,051,941	11
2XXX	Total liability	7,651,302	48	8,846,803	47
Equity Attributable to Shareholders of the Parent (Note 4 and 21)
3110	Common stock	9,100,712	57	9,100,712	49
3200	Capital reserve	219,160	1	214,187	1
Retained earning
3310	Legal reserve	525,527	3	525,527	3
3320	Special reserve	229,670	2	229,670	1
3350	Accrued loss	( 1,328,109 )	( 8 )	( 471,268 )	( 2 )
3300	Total retained earnings	( 572,912 )	( 3 )	283,929	2
3400	Other equity	( 959,556 )	( 6 )	( 428,828 )	( 2 )
3500	Treasury stock	( 287,142 )	( 2 )	( 287,142 )	( 2 )
31XX	Total Equity to Shareholders of the Parent	7,500,262	47	8,882,858	48
36XX	Non-controlling interests (Note 21)	767,911	5	927,953	5
3XXX	Total equity	8,268,173	52	9,810,811	53
	Total of Liability and Equity	$ 15,919,475	100	$ 18,657,614	100

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

(With Deloitte & Touche auditors' report dated March 16, 2026)

Chairman: Kuo, Shao-Yi

Manager: Tung, Min-Hsiung

Accounting Supervisor: Yuan, Pei-Huan

LI PENG ENTERPRISE CORPORATION LIMITED AMD SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For The Years Ended December 31, 2025 and 2024

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

Code		2025		2024
		Amount	%	Amount	%
4000	Operating revenue (Note4,22,29)	$ 27,859,035	100	$ 34,825,223	100
5000	Operating cost (Note 9, 29)	27,659,527	99	34,439,447	99
5900	Operating profit	199,508	1	385,776	1
5910	Unrealized profit on sales to associates	( 1,079 )	-	( 1,211 )	-
5920	Realized profit on sales to associates	1,211	-	1,116	-
5950	Realized operating profit	199,640	1	385,681	1
	Operating expense (Note 8,29)
6100	Sales expense	350,832	1	424,282	1
6200	Management expense	226,182	1	251,085	1
6300	R&D expense	122,897	1	122,020	-
6450	Expected credit gain on reversal of impairment loss	( 2,522 )	-	660	-
6000	Total operating expenses	697,389	3	798,047	2
6900	Operating net loss	( 497,749 )	( 2 )	( 412,366 )	( 1 )
	Non-operating income and expenses (Note 13,23, 29)
7100	Interest income	74,605	-	100,939	-
7010	Other income	43,451	-	42,921	-
7020	Other profit and loss	( 468,647 )	( 1 )	416,011	1
7050	Finance cost	( 118,557 )	-	( 104,661 )	-
7060	Share of profits of associates	31,712	-	31,935	-
7000	Total non-operating income and loss	( 437,436 )	( 1 )	487,145	1

(Continued)

		2025		2024
Code		Amount	%	Amount	%
7900	Net loss before tax	($ 935,185)	( 3)	$ 74,779	-
7950	Income tax profit (Note 4, 24)	97,817	-	( 1,704)	-
8200	Net loss of the year	( 837,368)	( 3)	73,075	-
	Other comprehensive income (net)
8310	Uncategorized items profit and loss :
8311	Measure on defined benefit plans	567	-	12,419	-
8316	Unrealized gain (loss) on investments in equity instruments at fair value through other comprehensive income	( 561,268)	( 2)	( 294,787)	( 1)
8320	Share of other comprehensive gain of associates and joint ventures	( 89,000)	( 1)	( 40,713)	-
8360	Items that may be reclassified subsequently to profit or loss :
8361	Exchange differences resulting from translation on foreign operations	( 49,769)	-	21,833	-
8300	Total other comprehensive income of the year	( 699,470)	( 3)	( 301,248)	( 1)
8500	Total comprehensive income of the year	($ 1,536,838)	( 6)	($ 228,173)	( 1)
	Net (loss) profit attributable to :
8610	Shareholder of the parent	($ 849,589)	( 3)	$ 39,939	-
8620	Non-controlling interests	12,221	-	33,136	-
8600		($ 837,368)	( 3)	$ 73,075	-
	Comprehensive income attributable to :
8710	Shareholders of the parent	($ 1,387,569)	( 5)	($ 176,205)	( 1)
8720	Non-controlling interests	( 149,269)	( 1)	( 51,968)	-
8700		($ 1,536,838)	( 6)	($ 228,173)	( 1)
	Earnings (loss) Per Share (Note 25 )
9710	Basic	($ 0.97)		$ 0.04
9810	Diluted	($ 0.97)		$ 0.04

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

(With Deloitte & Touche auditors' report dated March 16, 2026)

Chairman: Kuo, Shao-Yi

Manager: Tung, Min-Hsiung

Accounting Supervisor: Yuan, Pei-Huan

LI PENG ENTERPRISE CORPORATION LIMITED AMD SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGE IN EQUITY

For The Years Ended December 31, 2025 and 2024

(In Thousands of New Taiwan Dollars)

Code	Equity Attributable to Shareholders of the Parent
	Capital Stock-Common Stock			Retained Earning			Other Equity Items					Non-Controlling interests
	Shares (In Thousands)	Amount	Capital Surplus	Legal Reserve	Special Reserve	Unappropriated Earnings (Unappropriated deficit)	Foreign Organization Financial report Exchange difference	Parent Company	Subsidiary using Equity Method	Associates using Equity Method	Treasury Stock	Total	Non-Controlling interests	Total equity
A1	BALANCE JANUARY 1, 2024	910,071	$9,100,712	$191,201	$525,527	$229,670	($514,313)	($35,349)	$208,545	($248,272)	($134,494)	($289,292)	$9,033,935	$968,659	$10,002,594
C7	Adjustments to other capital surplus: Adjustments to share of changes in equities of associates	-	-	22,364	-	-	-	-	-	(8)	-	22,356	11,353	33,709
L7	Disposal of parent company shares by a subsidiary is deemed to be a treasury stock transaction	-	-	622	-	-	-	-	-	-	2,150	2,772	2,459	5,231
O1	Cash dividends of the Company received by subsidiaries	-	-	-	-	-	-	-	-	-	-	-	(2,550)	(2,550)
Q1	Associates' disposal of equity tool through other comprehensive income	-	-	-	-	-	(7,744)	-	-	7,744	-	-	-	-
D1	Net gain in 2024	-	-	-	-	-	39,939	-	-	-	-	39,939	33,136	73,075
D3	Other comprehensive income (loss) in 2024, net of income tax	-	-	-	-	-	10,850	20,915	(112,124)	(96,593)	(39,192)	-	(216,144)	(85,104)	(301,248)
D5	Total comprehensive income (loss) in 2024	-	-	-	-	-	50,789	20,915	(112,124)	(96,593)	(39,192)	-	(176,205)	(51,968)	(228,173)
Z1	BALANCE DECEMBER 31, 2024	910,071	9,100,712	214,187	525,527	229,670	(471,268)	(14,434)	96,421	(344,865)	(165,950)	(287,142)	8,882,858	927,953	9,810,811
C7	Adjustments to other capital surplus: Adjustments to share of changes in equities of associates	-	-	4,973	-	-	-	-	-	-	-	4,973	1,120	6,093
M7	Changes in ownership interests in subsidiaries	-	-	-	-	-	-	-	-	-	-	-	(1,764)	(1,764)
O1	Cash dividends of the Company received by subsidiaries	-	-	-	-	-	-	-	-	-	-	-	(4,500)	(4,500)
Q1	Associates' disposal of equity tool through other comprehensive income	-	-	-	-	-	(11,416)	-	-	6,445	4,971	-	(5,629)	(5,629)
D1	Net gain in 2025	-	-	-	-	-	(849,589)	-	-	-	-	(849,589)	12,221	(837,368)
D3	Other comprehensive income (loss) in 2025,	-	-	-	-	-	4,164	(46,130)	(217,976)	(185,456)	(92,582)	-	(537,980)	(161,490)	(699,470)
D5	Total comprehensive income (loss) in 2025	-	-	-	-	-	(845,425)	(46,130)	(217,976)	(185,456)	(92,582)	-	(1,387,569)	(149,269)	(1,536,838)
Z1	BALANCE DECEMBER 31, 2025	910,071	$9,100,712	$219,160	$525,527	$229,670	($1,328,109)	($60,564)	($121,555)	($523,876)	($253,561)	($287,142)	$7,500,262	$767,911	$8,268,173

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

(With Deloitte & Touche auditors' report dated March 16, 2026)

Chairman: Kuo, Shao-Yi

Manager: Tung, Min-Hsiung

Accounting Supervisor: Yuan, Pei-Huan

LI PENG ENTERPRISE CORPORATION LIMITED AMD SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

For The Years Ended December 31, 2025 and 2024

(In Thousands of New Taiwan Dollars)

Code		2025	2024
	Cash Flows from Operating Activities
A10000	Loss before income tax	($ 935,185)	$ 74,779
A20010	Adjustments to reconcile profit (loss)
A20100	Depreciation expense	559,222	594,545
A20200	Amortization expense	3,673	3,232
A29900	Amortized prepayment	68,265	64,664
A20300	Expected credit impairment loss
(reversal of impairment gain)	( 2,522)	660
A20400	Financial assets and liability at fair value through profit	( 14,912)	( 59,055)
A20900	Finance costs	118,557	104,661
A21200	Interest income	( 74,605)	( 100,939)
A21300	Dividend income	( 5,775)	( 2,246)
A22300	Share of income to associates using equity method	( 31,712)	( 31,935)
A22500	Gain on disposal or retirement of property, plant, equipment	( 5,240)	( 4,471)
A23100	Gain on disposal of investment, net	( 232)	( 17,592)
A23700	Loss on lease modifications	-	248
A23700	Impairment loss on property, plant and equipment	314,778	-
A23800	Impairment loss on inventory	26,961	114,097
A23900	Unrealized profit on sales to associates	1,079	1,211
A24000	Realized loss on sales to associates	( 1,211)	( 1,116)
A24100	Loss on foreign exchange, net	49,852	167,545
	Changes in operating assets and liabilities
A31115	Financial assets mandatorily measured at fair value through profit or loss	( 239,546)	21,014
A31130	Notes receivable	4,569	15,590
A31140	Notes receivable – related parties	12,266	69,472
A31150	Accounts receivable	1,596,574	( 346,478)
A31160	Accounts receivable – related parties	26,087	8,641
A31200	Inventory	363,692	( 101,426)
A31230	Prepayments	12,965	( 105,248)
A31240	Other current assets	3,855	( 7,243)
A31250	Other financial assets	( 680,790)	199,546

(Continued)

Code		2025	2024
A31990	Other non-current assets	($236)	($1,107)
A32130	Notes payable	17,983	(12,999)
A32140	Notes payable-related parties	(674)	(83,224)
A32150	Accounts payable	(1,184,950)	92,099
A32160	Accounts payable-related parties	(49,744)	43,751
A32180	Other payables	(193,337)	(5,873)
A32200	Current provisions	7,214	(561)
A32240	Accrued pension liabilities	(8,406)	(9,067)
A32230	Other current liability	39,017	25,365
A33000	Cash inflow (outflow) generated from operations	(202,468)	710,540
A33100	Interest income	75,419	101,051
A33200	Dividend income	5,775	2,246
A33200	Dividend income from associates	36,968	28,945
A33300	Interest payable	(117,906)	(103,851)
A33500	Income tax payable	(23,256)	(27,120)
AAAA	Cash inflow (outflow) from operating activities	(225,468)	711,811
	Cash Flows from Investing Activities
B00010	Acquisition of financial assets at fair value through other comprehensive income	(20,894)	(2,164)
B00020	Disposal of financial assets at fair value through other comprehensive income	19,319	-
B01800	Acquisition of investments accounted for using equity method	(38,164)	-
B02300	Disposal of subsidiaries	(900)	-
B02700	Acquisition of property, plant, equipment	(326,853)	(423,851)
B02800	Disposal of property, plant, equipment	7,579	5,035
B03800	Decrease (Increase) in refundable deposits	(77)	1,383
B04500	Acquisition of intangible asset	(5,608)	(2,542)
B05900	Increase in loan to related parties receivables	(49,740)	(382,623)
BBBB	Cash outflow from investment activity	(415,338)	(804,762)
	Cash Flows from Financing Activities
C00200	Decrease in short-term loan	(230,000)	(48,000)
C00500	Increase (Decrease) in short-term bills payable	(100,000)	90,000
C01600	Lend long-term loan	3,385,000	3,475,000
C01700	Repayments of long-term borrowings	(3,310,000)	(3,780,250)
C04020	Lease principal repayment	(2,701)	(2,680)
C03100	Decrease in refundable deposits	7	(1,305)
C03700	Increase (decrease) in loan to related parties payables	588,018	(33,000)
			(Continued)

Code		2025	2024
C05000	Treasury shares sold	$ -	$ 5,231
C05200	Cash dividends distributed by subsidiaries	( 4,500)	( 2,550)
CCCC	Cash inflow (outflow) from financing activities	325,824	( 297,554)
DDDD	Effect of exchange rate on cash or cash equivalents	( 8,401)	53,030
EEEE	Net Decrease in Cash and Cash Equivalents	( 323,383)	( 337,475)
E00100	Balance of cash and cash equivalents, beginning of the year	1,765,356	2,102,831
E00200	Balance of cash and cash equivalents, end of the year	$1,441,973	$1,765,356

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

(With Deloitte & Touche auditors' report dated March 16, 2026)

Chairman: Kuo, Shao-Yi
Manager: Tung, Min-Hsiung
Accounting Supervisor: Yuan, Pei-Huan

LI PENG ENTERPRISE CORPORATION LIMITED AMD SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Company History

Li Peng Enterprise Corporation Limited (the “Li Peng” or “Company”), which was established in August 1975, produced various types of printed papers, decal papers, paper products, and printing boards. In 1985, dyeing plant was built; in 1988, weaving plant was then added to produce synthetic, natural woven fabric, cotton, and printed textile. In 1999, additional nylon plants were built, which were to produce synthetic fibers and nylon filament yarns that would be made into products for trading.

The Company’s factories are located in Yangmei district in Taoyuan city, and another in Fanyuan township in Changhua County.

The Company was listed and traded on the Taiwan Stock Exchange in January 1992.

The Company’s major shareholder is Lealea Enterprise Co. Ltd., with 19.27% and 17.45% of the company’s shares as of December 31, 2025 and 2024.

The Company’s functional currency and the currency stated in the consolidated financial statement are both New Taiwanese Dollar.

The Authorization of Financial Statements

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

Application of New and Revised International Financial Reporting Standards

(一) 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 adoption of the amendments to IAS 21 'Lack of Exchangeability' is not expected to result in any significant changes to the Company's accounting policies.

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(二) IFRS endorsed by the Financial Supervisory Commission (FSC) in 2026

New, Revised or Amended Standards and Interpretations	Effective Date Issued by IASB
Amendments to IFRS 9 and IFRS 7–"Amendments to the Classification and Measurement of Financial Instruments" Regarding the Revised Application	January 1, 2026
Amendments to IFRS 9 and IFRS 7 – "Contracts Related to Nature-Dependent Power"	January 1, 2026
Annual Improvements to IFRS Accounting Standards – Volume 11	January 1, 2026
IFRS 17 "Insurance Contracts" (including the 2020 and 2021 Amendments)	January 1, 2023

As of the date of approval of this consolidated financial report, the consolidated company assesses that the amendments to the above-mentioned standards and interpretations will not have a significant impact on its financial position and financial performance.

(三) The IFRSs issued by IASB but not yet endorsed and issued into effect by the FSC

New, Revised or Amended Standards and Interpretations	Effective Date Issued by IASB (Note 1)
Amendments to IFRS 10 and IAS 28 – "Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture"	Undecided
IFRS 18 "Presentation and Disclosure in Financial Statements"	January 1, 2027
IFRS 19 "Subsidiaries without public accountability: Disclosures" (including the 2025 Amendments)	January 1, 2027
Translation to a Hyperinflationary Presentation Currency (Amendments to IAS 21)	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: The FSC announced on September 25, 2025, that enterprises in Taiwan shall apply IFRS 18 starting from January 1, 2028. Early adoption is also permitted once IFRS 18 has been endorsed by the FSC.

IFRS 18 "Presentation and Disclosure in Financial Statements"

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

The Company shall assess whether it has specified main business activities, such as investing in specific types of assets or providing financing to customers, to appropriately classify income and expense items in the statement of profit or loss into the following categories: operating, investing, financing, income taxes, and discontinued operations.
The profit and loss statement should present operating profit and loss, profit and loss before financing and tax, and the subtotals and total of profit and loss.
Providing guidance to strengthen aggregation and segmentation 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.

Increase disclosure of 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, consequential amendments were made to IAS 7 'Statement of Cash Flows' as follows:

When the Company prepares cash flows from operating activities using the indirect method, it shall use 'operating profit or loss' as the starting point for the reconciliation.
Dividends and interest received by the Company shall be classified as investing activities, while dividends and interest paid shall be classified as financing activities. If the Company assesses that it has specified main business activities, it must consider the categories in which dividend income, interest income, and interest expenses are presented in the statement of profit or loss to determine the classification of dividends received, interest received, and interest paid in the statement of cash flows. However, each of these cash flows can only be classified within a single category in the statement of cash flows.

In addition to the above impacts, as of the date of approval and issuance of this consolidated 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.

Summary of Significant Accounting Policies

(一) Statement of Compliance

These consolidated financial statements have been prepared in accordance with the 'Regulations Governing the Preparation of Financial Reports by Securities Issuers' and the International Financial Reporting Standards (IFRS) endorsed and issued by the Financial Supervisory Commission (FSC).

(二) Basis of Preparation

The consolidated financial statements have been prepared on the historical cost basis, except for financial instruments measured at fair value and net defined benefit liabilities, which are recognized as the present value of the defined benefit obligation less the fair value of plan assets.

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The evaluation of fair value based on the observability and importance of relevant input value is classified into gradings from 1st to 3rd grade:

a. 1st grade input value: the quotation of equivalent value of the assets or liabilities in the active market on evaluation date (unadjusted).
b. 2nd grade input value: the observable input value (besides the quotation of 1st grade) on assets and liabilities direct (value) or indirect (derived value).
c. 3rd grade input value: the unobservable input value on assets or liabilities.

(三) Classification of Current and Noncurrent Assets and Liabilities

Current Assets include:

a. Assets held for trading purposes
b. Expected to be converted to cash, sold or consumed within 12 months from the end of the reporting period, and
c. Cash and cash equivalent (not including the restricted users for exchange or settle liabilities after over 12 months from the balance sheet date.)

Current Liabilities include:

a. Liabilities held for trading purposes
b. Liabilities expected to be settled within 12 months from the balance sheet date (including liabilities from long-term refinancing or readjusting payment agreement even if it's after the balance sheet date until the approved release date of financial report), and
c. The deadline to settle liabilities cannot be deferred unconditionally to later than 12 months after the balance sheet date. The terms of the liability may depend on the counterparty's choice; the issuance of equity instruments to cause its liquidation does not affect the classification.

Items that aren't current assets or liabilities as mentioned above, would be classified as non-current assets or liabilities.

(四) Basis of Consolidation

The consolidated financial statements comprise the financial statements of Li Peng Enterprise Co., Ltd. (the 'Company') and the entities controlled by the Company (its subsidiaries). The consolidated statement of comprehensive income includes the results of operations of subsidiaries acquired or disposed of during the year, from the date of acquisition or until the date of disposal, respectively. The financial statements of the subsidiaries have been appropriately adjusted to align their accounting policies with those of the Group. In preparing the consolidated financial statements, all intra-group transactions, balances, income, and expenses have been eliminated in full. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

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

The details on items, ratio of shares owned, and operations of the subsidiaries can be referred to Note 12 and Table 7 and 8.

(五) Business Combination

Business combination is through acquisition methods. Expenses related to acquisitions are listed as expenses when expenses incurred from rendering of services as it happened.

Goodwill is the total amount of the fair value of the transfer, the amount of non-controlling interests of the acquiree, and the fair value of the acquiree's previously held equity at the acquisition date, the net measure of identifiable assets acquired, and liabilities assumed beyond the date of acquisition.

The acquiree has the current ownership of equity and is entitled to pro rata non-controlling interests in the acquiree's net assets at the time of liquidation, which is measured by fair value. Other non-controlling interests are measured at fair value.

A business combination concluded in stages is based on the fair value on the acquisition date to re-measure the equity of the acquiree that the merging company has previously held. If any profit or loss arises as a result, it is recognized as a profit or loss. The amount recognized in other comprehensive profits and losses before the acquisition date due to the previously held equity of the acquiree is recognized on the same basis as if the amalgamating consolidated company directly disposes of its previously held equity.

(六) Foreign Currencies

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

At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date; such exchange differences are recognized in profit or loss in the period in which they arise.

Amount receivable or payable with relation to the consolidated 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

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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 rate at the date when the fair value was determined. Exchange differences arising from such translation are recognized in profit or loss for the period. However, for items where changes in fair value are recognized in other comprehensive income, any resulting exchange differences are also recognized in other comprehensive income.

Non-monetary items measured at historical cost in a foreign currency are translated using the exchange rate at the date of the transaction and are not retranslated.

As preparing the consolidated financial statements, assets and liabilities of the Company's foreign operations are translated into NTD using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period. Exchange differences arising, if any, are recognized in other comprehensive income and accumulated in equity (attributed to the consolidated company's non-controlling interests as appropriate).

(±)Inventories

Inventories include raw materials, materials, finished goods, and processed goods. Inventories are stated at the lower of cost or net realizable value. Inventories are recorded at standard cost and adjusted to approximate weighted-average cost at the end of the reporting period. Net realizable value represents the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. Inventory cost is calculated by the weighted average method.

(△)Investment in Associates

Investment accounted for using equity method are investments in associates, which the consolidated company has significant influence over, they are not subsidiaries.

The consolidated company invested in associates using equity method.

Under the equity method, an investment in an associate is initially recognized in the consolidated statements of financial position at cost and adjusted thereafter to recognize the consolidated company's share of profit or loss and other comprehensive income of the associates as well as the distribution received. The consolidated 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 and liabilities of the associate at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment and is not amortized. Any excess of the Company's share of the net fair value of the identifiable assets and liabilities over the cost of acquisition is recognized in profit or loss at the date of acquisition.

When the associated company issues new shares, if the consolidated company fails to subscribe according to the shareholding ratio, which causes the shareholding ratio to

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change, and consequently increases or decreases the net equity value of the investment, the amount of increase or decrease shall be adjusted to the capital reserve - use the equity method to recognize the changes in the net equity of associates and the investment using the equity method. If the shareholding ratio is not subscribed nor obtained, which results in a decrease in the ownership and interest of the associated company, the amount recognized in the other comprehensive profit and loss related to the associated company shall be reclassified according to the reduced portion, and the basis of accounting treatment is related to the associated company, if the relevant assets or liabilities are directly disposed of, the basis must be the same; if the adjustment in the preceding paragraph should be debited to the capital surplus, and the balance of the capital reserve generated by the investment using the equity method is insufficient, the difference is debited to the retained earnings.

When the consolidated company's share of losses in the associated company equals or exceeds its equity in the associated company (including the carrying amount of the investment in the associated company under the equity method and other long-term interests that are essentially part of the consolidated company's net investment in the associated company), that is, stop recognizing further losses. The consolidated company only recognizes additional losses and liabilities within the scope of incurred statutory obligations, deduced obligations, or payments on behalf of associates.

When assessing impairment, the consolidated company regards the overall book value of the investment (including goodwill) as a single asset, compares the recoverable amount with the carrying amount, and conducts an impairment testing. The recognized impairment loss is not allocated to the component of the investment book value. Any assets, including goodwill, any reversal of the impairment loss shall be recognized within the scope of the subsequent increase in the recoverable amount of the investment.

The consolidated company ceases to use the equity method on the day when its investment ceases to be an associated company, and its retained equity in the original associated company is measured at fair value, recorded in the current profit and loss. In addition, for all amounts recognized in other comprehensive profit and loss related to the associated company, the basis of accounting treatment is the same as the basis that the associated company must abide by when and if it directly disposes the assets or liabilities. If an investment in an associated company becomes an investment in a joint venture, or an investment in a joint venture becomes an investment in an associated company, the consolidated company will continue to use the equity method without re-evaluating the retained equity.

The profit and loss arising from the upstream, downstream, and side-current transactions between the consolidated company and the associated company are recognized in the consolidated financial report only to the extent that the consolidated company has no relation to the equity of the associated company.

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(九) Property, Plant and Equipment

Property, plant and equipment are listed as expenses, measured at cost less accumulated depreciation and accumulated impairment.

Property, plant, and equipment under construction are recognized at cost less accumulated impairment losses. Cost includes professional fees and borrowing costs eligible for capitalization. These assets are classified into the appropriate categories of property, plant, and equipment and depreciation commences when they are completed and ready for their intended use.

Land is not depreciated, other property, plant and equipment’s residual values over their useful lives and depreciation are computed using the straight-line method, estimate the depreciated value individually based on every significant part. The consolidated company shall estimate and review their useful lives, residual values, and depreciation method at the end of each reporting period, with the effect of any changes in estimates accounted for on a prospective basis.

The gain or loss arising from the derecognition of property, plant, and equipment is determined as the difference between the net disposal proceeds and the carrying amount of the asset, and is recognized in profit or loss.

(十) Investment property

Investment property is property held to earn rentals or for capital appreciation or both. Investment property also includes land held for a currently undetermined future use.

Owned investment property is initially measured at cost, including transaction costs, and subsequently measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation on investment property is calculated using the straight-line basis.

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

(十一) Intangible Assets

Other separately acquired intangible assets with finite useful lives are carried at cost less accumulated amortization and accumulated impairment losses. Amortization is recognized using the straight-line method over the estimated useful lives, finite useful lives, residual values, and amortization method should be reviewed at the end of each reporting period by the consolidated company, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with uncertainty useful lives are presented as cost less accumulated impairment losses.

As intangible assets are being removed, the difference between the net disposal value and the asset’s book value is recognized in the current profit and loss.

( + ̵ )Impairment of Property, Plant and Equipment, Right-of-use Assets, and Intangible Assets (besides goodwill)

The consolidated company reviews the carrying amounts of its property, plant and equipment, right-of-use assets, and intangible assets (besides goodwill) to determine whether there is any indication that those assets have suffered an impairment loss on each balance sheet date. If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the consolidated company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Shared assets are allocated to individual cash-generating units for which a reasonable and consistent allocation basis can be identified.

For intangible assets that don't have definite useful life and are not yet available for use, impairment testing shall be carried out at least annually and when there are signs of impairment.

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

When an impairment loss subsequently reverses, the carrying amount of the asset or a cash-generating unit is adjusted to the revised recoverable amount, but the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset or cash-generating unit in the previous year (minus amortization or depreciation). A reversal of an impairment loss is recognized immediately in profit or loss.

( + ̵ )Financial Instruments

Financial assets and financial liabilities are recognized on the consolidated balance sheet when the consolidated company becomes a party to the contract terms of the instrument.

In the initial recognition of financial assets and financial liabilities, if financial assets or financial liabilities are not measured at fair value through profit and loss, they are measured at fair value plus trading costs directly attributable to the acquisition or issuance of financial assets or financial liabilities. Trading costs directly attributable to the acquisition or issuance of financial assets or financial liabilities measured at fair value through profit and loss are immediately recognized as profit and loss.

Financial Asset

Conventional transactions of financial assets are recognized and delisted by accounting on the trading day.

(1) Types of Measurement

Types of financial assets held by the consolidated company are financial assets measured at fair value through profit and loss, financial assets measured at amortized cost, and equity instrument investment measured at fair value through other comprehensive gains and losses.

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A. Financial Assets Measured at Fair Value through Profit and Loss

Financial assets measured at fair value through profit and loss include mandatory fair value through profit and loss and financial assets designated as fair value through profit and loss. Mandatory financial assets measured at fair value through profit or loss include equity instrument investments that the amalgamating company has not specified to be measured at fair value through other comprehensive profit and loss, and debt instrument investments that are not classified as measured at amortized cost or measured at fair value through other comprehensive profit and loss.

Financial assets are designated at the time of initial recognition as measured at fair value through profit and loss if the designation can eliminate or significantly reduce measurement or recognition inconsistencies.

Financial assets measured at fair value through profit and loss are the dividends and interests generated by fair value measurement, that are recognized in other income and interest income respectively, and the benefits or losses generated by the re-measurement are recognized in other income and loss. Please refer to Note 28 for the method of determining fair value.

B. Financial Assets at Amortized Cost

If the financial assets invested by the consolidated company meet the following two conditions at the same time, they are classified as financial assets measured at amortized cost:

a. Held under a certain business model, the purpose of this model is to hold financial assets to collect contractual cash flows; and
b. The terms of the contract generate cash flows on a specific date, and these cash flows are all interests on the payment of the principal and the amount of principal in circulation.

Financial assets measured at amortized cost (including cash and cash equivalents, accounts receivable, notes receivable and other receivables measured at amortized cost) after initial recognition, are measured by the total book amount determined by the effective interest method minus the amortized cost of any impairment loss, and any foreign currency exchange gains and losses are recognized as in profit and loss.

Except for the following two cases, interest income is calculated by multiplying the effective interest rate by the total book value of financial assets:

a. For purchased or created credit-impaired financial assets, interest income is calculated by multiplying the effective interest rate after credit adjustment by the amortized cost of the financial assets.

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b. For financial assets that are not purchased or originated from credit impairment, but subsequently become credit impairment, calculate the interest income by multiplying the effective interest rate by the amortized cost of the financial asset from the next reporting period after the credit impairment.

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

Cash equivalents include time deposits that are highly liquidated and can be converted into fixed cash at any time within 3 months from the date of acquisition, and the risk of changes in value is very low, which is used to meet short-term cash commitments.

C. Investment in Equity Instruments Measured at Fair Value Through Other Comprehensive Income

During initial recognition, the consolidated company can make an irrevocable choice to invest in equity instruments that are not held for trading and not recognized by the purchaser of a business merger and designated to be measured at fair value through other comprehensive income.

Equity instrument investments measured at fair value through other comprehensive income are measured at fair value, and subsequent changes in fair value are reported in other comprehensive income and accumulated in other equity. At the time of investment disposal, the accumulated profits and losses are directly transferred to retained earnings and are not reclassified as profits and losses.

Dividends derived from equity instrument investments measured at fair value through other comprehensive income are recognized in the profit and loss when the rights of payment collection of the consolidated company were established unless the dividends clearly represent partial investment cost recovery.

(2) Impairment Loss of Financial Assets and Contractual Assets

The consolidated company assesses the financial assets (including accounts receivable) measured at amortized cost based on expected credit losses on each balance sheet date, debt instrument investments measured at fair value through other comprehensive income, operating lease receivables, and impairment loss of contractual assets.

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Accounts receivable, operating lease receivables, and contractual assets are all recognized as loss allowance based on expected credit losses during the duration. For other financial assets, first assess whether there is a significant higher credit risk since the initial recognition. If there is no significant higher risk, the loss allowance is recognized based on the 12-month expected credit loss; if the risk has increased significantly, the loss allowance is recognized based on the duration of the expected credit loss.

Expected credit loss is the weighted average credit loss based on the risk of breach of contract. The 12-month expected credit loss refers to the expected credit loss caused by the possible breach of contract event of the financial instrument within 12 months after the reporting date, and the lifetime expected credit loss represents the expected credit loss caused by all possible breach of contract events during the expected lifetime of the financial instrument.

The consolidated company is for the purpose of internal credit risk management, and without considering the collateral held, when it is determined that there is internal or external information showing that the debtor is unable to pay off the debt, it represents that the financial asset has breached the contract. The impairment loss of all financial assets is reduced by the allowance account to reduce its carrying amount, but the loss allowance of debt instrument investment measured at fair value through other comprehensive income is recognized in other comprehensive income and does not reduce its carrying amount.

(3) Delisting of Financial Assets

The consolidated company only delists financial assets when the contractual rights from the cash flow of financial assets have lapsed, or the financial assets have been transferred and almost all the risks and rewards of the ownership of the assets have been transferred to other companies.

When a financial asset measured at amortized cost is delisted, the difference between its book value and the consideration received is recognized in profit or loss. When the debt instrument investment measured at fair value through other comprehensive income is delisted, the difference between the carrying amount and the consideration received plus the sum of any accumulated profits or losses that have been recognized in other comprehensive income is recognized in profit and loss. When equity instrument investments measured at fair value through other comprehensive income are delisted, the accumulated profits and losses are directly transferred to retained earnings and are not reclassified as profits and losses.

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Financial Liabilities

(1) Subsequent Measurement

Except for the cases below, all financial liabilities are measured at amortized cost using the effective interest method:

Financial Liabilities Measured at Fair Value Through Profit and Loss

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

Interested derived from financial liabilities held for trading and designated as fair value through profit and loss are recognized as finance cost, other profits or losses arise from remeasurement are recognized in other profits and losses. Please refer to Note 28 for the method of determining the fair value.

(2) Delisting of Financial Liabilities

When delisting financial liabilities, the difference between its carrying amount and the paid amount (including any transferred non-cash assets or liabilities assumed) is recognized as profit or loss.

Derivative Financial Instruments

Derivatives signed by the consolidated company include forward foreign exchange contracts, interest rate exchanges and currency exchanges, which are used to manage the consolidated company's interest rate and exchange rate risks.

Derivative instruments are initially recognized at fair value when the derivative instrument contract is signed, and subsequently re-measured at fair value on the balance sheet date. The profits or losses resulting from subsequent measurement are directly included in the profit and loss, but they are designated as derivatives of effective hedging instruments. The point at which tools are recognized in profit or loss will depend on the nature of the hedging relationship. When the fair value of the derivative is positive, it is classified as a financial asset; when the fair value is negative, it is classified as a financial liability.

If derivative instruments are embedded in the asset master contract within the scope of IFRS 9 "Financial Instruments", the overall contract determines the classification of financial assets. If a derivative is embedded in an asset master contract that is not within the scope of IFRS 9 (such as embedded in a financial liability master contract), and if the embedded derivative meets the definition of a derivative, its risk and characteristics are not closely related to the risk and characteristics of the master contract, when the combined contract is not measured at fair value through profit or loss, the derivative is regarded as a separate derivative.

(十四) Current provisions

The amount recognized as a liability reserve is based on the risk and uncertainty of the obligation and is the best estimation of the expenditure required to settle the obligation on the balance sheet date. The liability provision is measured by the discounted value of the estimated cash flow of the obligated settlement.

Provisions for Carbon Fees

The provision for carbon fees, recognized in accordance with the 'Carbon Fee Collection Regulations' and other relevant laws and regulations in Taiwan, is based on the best estimate of the expenditure required to settle the obligation for the current year. It is recognized and measured based on the proportion of actual emissions relative to the total annual emissions.

(十五) Income Recognition

After the consolidated company identifies performance obligations in the customer's contract, it allocates the trading price to each performance obligation, and recognizes revenue when each performance obligation is met.

Commodity Sales Revenue

Commodity sales revenue is generated from customers who have the right to determine prices and use the commodities and are responsible for resale, customers bear the consequences of commodity obsolescence. The consolidated company recognizes revenue and accounts receivable at this point.

When the material is removed for processing, the control of the ownership of the processed commodity has not been transferred, so the income is not recognized when the material is removed.

(十六) Lease

The consolidated company assesses whether the contract belongs to (or contains) a lease on the date of signing contract.

The consolidated company as Lessor

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

Under operating leases, lease payments after deduction of lease incentives are recognized as income on a straight-line basis during the relevant lease period. The original direct cost incurred in obtaining an operating lease is added to the book value of the underlying asset and recognized as an expense during the lease period on a straight-line basis.

When the lease includes both land and building elements, the consolidated company assesses whether almost all the risks and returns attached to the ownership of each element have been transferred to the lessee to assess whether each element is classified as a financial lease or an operating lease. Lease payments are apportioned

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to land and buildings based on the relative proportion of the fair value of the land and building lease rights on the date of signing contract. If the lease payment can be reliably allocated to these two elements, each element is treated according to the applicable lease classification. If the lease payment cannot be allocated to these two elements reliably, the overall lease is classified as a finance lease, but if both of these elements clearly meet the operating lease standards, the overall lease is classified as an operating lease.

The consolidated 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 on the lease start date.

The right-of-use asset is originally measured at cost (including the original measured amount of the lease liability, the lease payment paid before the lease start date minus the lease incentives received, the original direct cost and the estimated cost of restoring the underlying asset), and the subsequent cost minus accumulated depreciation and measure the amount after the accumulated impairment loss, as well as adjust the remeasurement amount of the lease liability.

The right-of-use assets are separately expressed on the consolidated balance sheet.

The right-of-use asset is depreciated on a straight-line basis from the lease start date to the end of the service life or the expiration of the lease period, whichever is earlier.

The lease liability is originally measured by the present value of the lease payment (including fixed payment). If the implicit interest rate of the lease can be easily determined, the lease payment is discounted using that interest rate. If the interest rate is not easily determined, use the lessee's incremental borrowing interest rate.

Subsequently, lease liabilities are measured on an amortized cost basis using the effective interest method, with interest expense allocated over the lease term. If there is a change in future lease payments resulting from a change in the lease term or in an index or rate used to determine those payments, the Company remeasures the lease liabilities with a corresponding adjustment to the right-of-use assets. However, if the carrying amount of the right-of-use asset has been reduced to zero, any remaining remeasurement amount is recognized in profit or loss. For lease modifications that are not accounted for as a separate lease, the remeasurement of the lease liability arising from a decrease in the scope of the lease is adjusted against the right-of-use asset, and any gain or loss relating to the partial or full termination of the lease is recognized in profit or loss; remeasurements arising from other modifications are adjusted against the right-of-use asset. Lease liabilities are presented separately in the consolidated balance sheet.

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(十七) Borrowing Cost

The borrowing cost directly attributable to the acquisition, construction or production of a qualified asset is a part of the cost of the asset until almost all necessary activities for the asset to reach its intended use or sale status have been accomplished.

Specific borrowings, such as investment income earned by temporary investment before the capital expenditure that meets the requirements, are deducted from the borrowing cost that meets the capitalization conditions.

Except for the above, all other borrowing costs are recognized as profit or loss in the current period.

(十八) Government Subsidies

Government subsidies are recognized only when it is reasonably certain that the combined company will comply with the conditions attached to the government subsidies and will receive such subsidies.

The government subsidies related to income are recognized in the profit and loss on a systematic basis during the period when the related costs that they intend to compensate are recognized as expenses in the merging company.

If the government subsidy is used to compensate for the expenses or losses that have occurred or is for the purpose of providing immediate financial support to the consolidated company and has no future related costs, it shall be recognized in the profit and loss during the period when it can be received.

(十九) Employee Benefits

a. Short-term Employee Benefits

Short-term employee benefit-related liabilities are measured by the expected non-discounted amount of cash paid in exchange for employee services.

b. Retirement Benefits

The determination of the retirement fund for the retirement plan is to recognize the amount of the retirement fund that should be provided as an expense during the employee's service period.

The definite benefit cost (including service cost, net interest and remeasurement) of the definite benefit retirement plan is calculated using the estimated unit benefit method. Service costs, including current service costs and net interest on net defined benefit liabilities (assets) were recognized as employee benefit expenses when incurred. Re-measurement (including actuarial gains and losses and remuneration of planned assets after interest deduction) is recognized when incurred. It is included in

30 -

other comprehensive profit and loss and included in retained earnings and is not reclassified to profit or loss in subsequent periods.

The net definite benefit liability (asset) is the shortfall (remaining) of the definite benefit retirement plan. The net determined welfare assets shall not exceed the present value of the refund of the withdrawal from the plan or the reduction of the future withdrawal.

The retirement funds of Libolon (Shanghai) Co., Li Mao Co., Hung Hsing Co., Li Shing Co., and Eton Petrochemical Co., adopt a defined contribution plan.

(ニ十) Treasury Stock

When Li Peng Enterprise buys back the issued shares as treasury stock, it debits the cost of treasury stock as a deduction of shareholders' equity.

The transfer of treasury stocks to employees shall be handled in accordance with International Financial Reporting Standards Bulletin No. 2 "Share Basic Benefits".

When canceling treasury stocks, credit "treasury stocks" and debit "capital reserve-stock premium" and "share capital" in proportion to the equity. If the book value of treasury stocks is higher than the total of face value and stock premium, the difference will be offset against the capital reserve generated by treasury stocks of the same type. If there is insufficient, the remaining surplus will be debited; otherwise, the difference will be credited to treasury stocks of the same type with capital reserve generated by the transaction.

The book value of treasury stocks is calculated using the weighted average method.

(ニ一) Income Tax

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

Current Income Tax

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

The income tax on unappropriated earnings calculated in accordance with the provisions of the Income Tax Law of the Republic of China is subject to additional income tax, which is recognized in the annual shareholders' meeting.

The adjustment of income tax payable in previous years shall be included in current income tax.

Deferred Income Tax

Deferred income tax is calculated based on the temporary difference between the book value of assets and liabilities and the tax basis for calculating taxable income.

Deferred income tax liabilities are generally recognized for all taxable temporary differences, while deferred income tax assets are likely to have taxable income for deduction of temporary differences, loss deductions or purchase of machinery and

31 -

equipment and research the income tax deductions for development and other expenditures are recognized.

Taxable temporary differences related to investment in subsidiaries and related companies are recognized as deferred income tax liabilities. However, if the consolidated company can control the timing of the reversion of the temporary differences, and the temporary differences are likely to not be in the foreseeable future. Except those who will return. The deductible temporary differences related to this type of investment will be recognized as deferred income tax only if it is likely to have sufficient taxable income to realize the temporary differences, and within the scope expected to return in the foreseeable future assets.

The carrying amount of deferred income tax assets is reviewed on each balance sheet date, and the carrying amount is reduced for those that no longer have sufficient taxable income to recover all or part of their assets. For those that have not been recognized as deferred income tax assets, they are also reviewed on each balance sheet date, and if they are likely to generate taxable income in the future for recovering all or part of their assets, the book amount will be increased.

Deferred income tax assets and liabilities are measured by the current tax rate for the expected debt settlement or asset realization. The tax rate is based on the tax rate and tax law that had been legislated or substantively legislated on the balance sheet date. The measurement of deferred income tax liabilities and assets reflects the tax consequences arising from the way the consolidated company expects to recover or settle the carrying amount of its assets and liabilities on the balance sheet date.

Current and Deferred Income Tax

Current and deferred income taxes are recognized in profit or loss, but current and deferred income taxes related to items recognized in other comprehensive profit or loss or directly included in equity are recognized in other comprehensive profit or loss or directly included in equity.

$\pmb{\mathfrak{E}}$ Critical Accounting Judgments and Key Sources of Estimation and Uncertainty

When the consolidated company adopts accounting policies, management must make relevant judgments, estimates and assumptions based on experience and other relevant factors for the difficulty of obtaining relevant information from other sources. Actual results may differ from estimations.

In developing critical accounting estimates, the Group incorporates the potential impacts of exchange rate volatility and U.S. reciprocal tariff measures into its considerations of key estimates, such as cash flow projections, growth rates, discount rates, and profitability. Management will continue to review these estimates and underlying assumptions.

32 -

33 -

6. Cash and Cash Equivalents

	Dec 31, 2025	Dec 31, 2025
Cash on hand	$ 3,445	$ 3,096
Bank check and current saving	885,509	740,722
Cash equivalent
Short-term bills	-	377,027
Bank foreign currency time deposits with maturity in 3 months	553,019	644,511
	$1,441,973	$1,765,356

As of December 31, 2025, and 2024, there were bank foreign currency time deposits of NT$26,976 thousand and NT$26,868 thousand, respectively with a maturity period of more than 3 months, which was listed in other financial assets-current. (Please refer to Note 10)

As of December 31, 2025, and 2024, the following time deposits are pledged and according to liquidity list in other financial assets-current. (Please refer to Note 10 and 30)

	Dec 31, 2025	Dec 31, 2024	Purpose
Time deposit	$ 2,000	$ 2,000	Deposit for natural gas

7. Financial Instruments Measured at Fair Value through Profit and Loss

	Dec 31, 2025	Dec 31, 2024
Financial assets mandatorily measured at FVTPL - current
Derivative financial instruments
—Cross-currency swap contracts	$ 317	$ 2,465
Non-derivative financial assets
—Domestic listed (OTC) stocks	110,439	100,861
—fund beneficiary certificate	354,713	122,163
—financial products	19,824	9,026
	$485,293	$234,515
Financial liabilities mandatorily measured at FVTPL -current
Derivative financial instruments
—Cross-currency swap contracts	$ 6	$ -
Financial assets mandatorily measured at FVTPL - non-current
Non-derivative financial assets
—Domestic not listed (OTC) common stocks	$ 5,527	$ 5,744

— Not listed abroad (OTC)
common stocks
320
$ 5,847
320
$ 6,064

a. At the end of the reporting period, outstanding cross-currency swap contracts not under hedge accounting were as follows:

Dec 31, 2025

Currency	Maturity Date	Contract Amount (Thousands)	Rate
USD/NTD	115.01.16	USD 6,000/	31.3290~
		NTD 187,998	31.3350

Dec 31, 2024

Currency	Maturity Date	Contract Amount (Thousands)	Rate
USD/NTD	114.01.16~114.02.26	USD 10,000/	32.3965~
		NTD 324,498	32.5030

The purpose of the consolidated company to engage in cross-currency swap contracts transactions is mainly to avoid the risk of foreign currency assets and liabilities exchange rate fluctuations.

b. In 2025 and 2024, the net profits and losses of financial products from the current and noncurrent financial assets measured by the fair value of the profits and losses were measured at a net profit of NT$ 14,912 thousand and a net profit of NT$ 59,055 thousand, respectively.

Notes and Accounts Receivable

	Dec 31, 2025	Dec 31, 2024
Notes receivable
Measured by cost after amortization
Total book value	$ 30,791	$ 35,360
less: allowance for impairment loss	(308)	(354)
	$ 30,483	$ 35,006
Accounts receivable
Measured by cost after amortization
Total book value	$ 1,026,265	$ 2,644,442
less: allowance for impairment loss	(3,759)	(6,239)
	$ 1,022,506	$ 2,638,203

Accounts Receivable

In principle, the credit period of the consolidated company to customers is from 30 days to 120 days on the monthly settlement, and the accounts receivable are not

interest-bearing. In addition to the actual credit impairment losses of individual customers, the consolidated company refers to past experience, considers the financial status of individual customers and their respective industries, competitive advantages and prospects, and categorizes individual customers into different risk assessment groups and according to the respective group, the loss rate is recognized as an allowance for impairment loss.

To reduce the credit risk, the management of the consolidated company assigns a dedicated team to be responsible for the determination of credit limits, credit approval and other monitoring procedures to ensure that appropriate actions have been taken in the recovery of overdue receivables. In addition, the consolidated company will review the recoverable amounts of receivables one by one on the balance sheet date to ensure that the unrecoverable receivables have been properly deducted accordingly. Thus, the management of Li Peng Enterprise believes that the credit risk of the consolidated company has been significantly reduced.

The consolidated company measures the accounts and notes receivable (not including related parties), the allowance for impairment loss is as follows (the consolidated company does the assessment on the basis of accounting date):

Dec 31, 2025

	0~60days	61~90days	91~120days	Over121 days	Total
Expected credit loss rate	0.5%~1%	0.5%~1%	0.5%~1%	0.5%~1%
Total book value	$1,017,968	$34,374	$2,417	$2,297	$1,057,056
Allowance for impairment loss (lifetime expected credit loss)	(3,765)	(265)	(19)	(18)	(4,067)
Cost after amortization	$1,014,203	$34,109	$2,398	$2,279	$1,052,989

Dec 31, 2024

	0~60days	61~90days	91~120days	Over121 days	Total
Expected credit loss rate	0.5%~1%	0.5%~1%	0.5%~1%	0.5%~1%
Total book value	$2,552,788	$84,426	$38,243	$4,345	$2,679,802
Allowance for impairment loss (lifetime expected credit loss)	(5,823)	(496)	(244)	(30)	(6,593)
Cost after amortization	$2,546,965	$83,930	$37,999	$4,315	$2,673,209

Information on the changes of allowance loss of accounts and notes receivable is as follow:

	2025	2024
Opening balance	$ 6,593	$ 5,914
Add : The current period (reversal) is listed as impairment loss	( 2,522)	660
Foreign currency exchange difference	( 4)	19
Closing balance	$ 4,067	$ 6,593

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9. Inventories

	Dec 31, 2025	Dec 31, 2024
Raw materials	$ 454,776	$ 505,077
Materials	69,132	62,153
Raw materials in transit	15,649	87,363
Processed goods	656,735	754,703
Finished goods	772,726	870,798
Product inventory	-	1,797
Stock in transit	140,320	218,225
	$ 2,109,338	$ 2,500,116

The inventory-related cost of goods sold in 2025 and 2024 were NT$ 27,659,527 thousand and NT$ 34,439,447 thousand, respectively.

Operating costs for 2025 and 2024 included impairment loss on inventory NT$ 26,961 thousand and NT$ 114,097 thousand respectively.

10. Other financial assets - current

	Dec 31, 2025	Dec 31, 2024
Pledged deposit receipt (Note 6 and 30)	$ 2,000	$ 2,000
Payment on behalf of others	792,752	-
Other Receivables	31,517	138,098
Other Receivables – related parties (Note 29)	9,491	12,111
Bank foreign currency time deposits with maturity more than 3 months (Note 6)	26,976	26,868
	$ 862,736	$ 179,077

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

	Dec 31, 2025	Dec 31, 2024
Equity instrument investment measured at fair value through other comprehensive profits and losses - non-current
Domestic listed stocks	$1,197,647	$1,762,969

The consolidated company invests in the aforementioned equity instruments for mid/long-term hold, and therefore chooses to designate these investments as measured at fair value through other comprehensive profits and losses.

On December 31, 2025 and 2024, there were investments of NT$ 25,976 thousand and NT$ 38,231 thousand in equity instruments measured at fair value through other comprehensive profits and losses, which were provided as collateral for the issuance of short-term notes, but as of December 31, 2025 and 2024, the quota has not been used, please refer to Note 30.

37 -

12. Subsidiaries

The preparation of this consolidated financial report is as follows :

Investor	Subsidiaries	Business Type	% of Share hold
			115年 Dec 3	114年 Dec 3
LiPeng Enterprise	In Talent	Reinvestments	100.00%	100.00%
〃	Li Mao Co.	Reinvestments in productions, bonds, and banking	53.38%	53.38%
〃	Hung Hsing Co.	〃	53.02%	53.02%
〃	Li Shing Co.	〃	53.00%	53.00%
〃	Libolon Energy Co.	Power generation industry	(Note)	70.00%
〃	Eton Petrochemical Co.	Chemical raw material wholesale	75.00%	75.00%
〃	PT. INDONESIA HWALIN	Processing and manufacturing of telescopic nylon knitted fabrics, various man-made fiber fabrics, embryonic fabrics and other import and export trade business.	82.07%	82.07%
In Talent	Libolon (Shanghai) Co.	Wholesale of rayon fabrics, fabrics, and sales of tangible goods	100.00%	100.00%
Eton Petrochemical Co., Ltd.	Eton Petrochemical International Co., Ltd.	Chemical raw material wholesale	100.00%	100.00%

(Note) On January 2, 2025, the Company acquired 183,600 shares of Libolon Energy Co., Ltd. from its related party, Rich Development Co., Ltd., increasing its ownership interest from 70% to 100%. Subsequently, Libolon Energy Co., Ltd. carried out a cash capital increase. As the Company did not subscribe to the new shares in proportion to its existing ownership, its shareholding was diluted from 100% to 40%, resulting in a loss of control over the investee. Accordingly, the investment was reclassified as an investment accounted for using the equity method. Please refer to Notes 26 and 29 for further details.

13. Investments Using Equity Method

Invested Associates	Dec 31, 2025	Dec 31, 2024
Insignificant Associate	$2,582,833	$2,658,285

For information on the businesses, main location of operation and country of registration of the above-mentioned associates, please refer to the attached Table "Name, Location, and Related Information of Investees" in attached Table 7.

The associates' first-tier fair value information in the public market is as follows :

Company name	Dec 31, 2025	Dec 31, 2024
Rich Development Co., Ltd	$415,946	$510,192

The consolidated company adopts equity measurement for all the above-listed associates.

Summarized Information on Each Insignificant Associates :

	2025	2024
Consolidated company's share
Continuing business unit's net profit for the year	$ 31,712	$ 31,935
Other comprehensive income	( 117,371)	( 25,421)
Total comprehensive income	($ 85,659)	$ 6,514

Among the consolidated Company's investments using the equity method and its share of profits and losses and other comprehensive income, the financial statements of Rich Development Co. Ltd. was not audited by the consolidated Company's Certified Public Accountant, but by another Certified Public Accountant.

Property, Plant and Equipment

	Dec 31, 2025	Dec 31, 2024
Owned land	$ 1,807,339	$ 1,847,871
Land improvement	1,574	3,917
Building	1,032,450	1,383,209
Machinery equipment	1,037,488	1,158,573
Transportation	11,866	7,762
Office equipment	4,847	4,121
Other equipment	203,601	252,214
Rental assets	1,431	1,974
Unfinished Construction	320	15,416
	$ 4,100,916	$ 4,675,057
	Owned Land	Land Improvement
---	---	---
Cost
Jan 1, 2024 balance	$ 1,847,871	$ 16,019
Additions	-	-
Disposals	-	-
Account transfer	-	-
Transfers to Investment Property	(40,532)	-
Net exchange difference	-	-
Dec 31, 2025 balance	$ 1,807,339	$ 16,019
Accumulated depreciation and impairment
Jan 1, 203 balance	$ -	($ 12,102)
Disposals	-	-
Impairment Loss	-	-
Depreciation	-	(2,343)
Net exchange difference	-	-
Dec 31, 2025 balance	$ -	($ 14,445)
Dec 31, 2025 Carrying amounts	$ 1,807,339	$ 1,574
Cost
Jan 1, 2024 balance	$ 1,847,871	$ 16,019
Additions	-	-
Disposals	-	-
Account transfer	-	-
Net exchange difference	-	-
Dec 31, 2024 balance	$ 1,847,871	$ 16,019
Accumulated depreciation and impairment
Jan 1, 2024 balance	$ -	($ 9,459)
Disposals	-	-
Depreciation	-	(2,643)
Net exchange difference	-	-
Dec 31, 2024 balance	$ -	($ 12,102)
Dec 31, 2024 Carrying amounts	$ 1,847,871	$ 5,917

a. The property, plant and equipment of the consolidated company are depreciated on a straight-line basis based on the following durability years :

Land improvement	5 years
House and building
Repair and maintenance works	2 to 10 years
New ancillary building	10 to 20 years
Electrical engineering	20 to 30 years
Main building engineering	30 to 45 years
Transportation
Lift repair and maintenance works	2 to 5 years
Stacker and pallet truck	5 to 6 years
Company car	4 to 8 years
Machinery equipment
Electrical engineering	2 to 8 years
Machinery engineering	9 to 16 years
Misc. equipment
Repair and maintenance works	2 to 5 years
Other equipment	3 to 10 years

b. The amount of property, plant and equipment that the consolidated company sets pledge as loan guarantee, the details are as follows (please refer to Note 18 and 30):

Lease Agreement

a. Right of use assets

	Dec 31, 2025	Dec 31, 2024
Right of use assets carrying amount
Land	$ 4,117	$ -
Building	16,961	21,434
	$ 21,078	$ 21,434
	2025	2024
Additions to right of use assets	$ 4,243	$ 6
Depreciation of right of use assets
Land	$ 126	$ 210
Building	2,853	3,060
	$ 2,979	$ 3,270

Except for the recognition of depreciation expenses, the right of use asset of the consolidated company did not have significant sublease and impairment in 2025 and 2024.

39 -

b. Lease Liabilities

	Dec 31, 2025	Dec 31, 2024
Lease liabilities carrying amount
Current	$ 2,978	$ 2,747
Non-current	$ 23,019	$ 23,718
Lease liabilities’ discount rate range as follows :
	Dec 31, 2025	Dec 31, 2024
Land	2.23833%	-
Building	10.03%	10.03%
c. Other information on lease
	2025	2024
Short-term lease expenses	$ 28,505	$ 29,963
Total of cash outflow from leasing	$ 33,616	$ 35,241

Investment Property

	Land
Jan 1, 2025 balance	$ -
Transferred from Property, Plant and Equipment	40,532
Dec 31, 2025 balance	$ 40,532

The Company’s investment property has not been appraised by an independent value. Instead, the Company’s management has assessed its value with reference to prevailing market prices of comparable properties in the vicinity. Based on this assessment, the value of the investment property as of December 31, 2025 was NT$98,365 thousand.

The amount of Investment Property that the company sets pledge as loan guarantee, the details are as follows (please refer to Note 18 and 30).

Other Intangible Assets

	Software costs	Other intangible assets	Total
Cost
Jan 1, 2025 balance	$ 10,376	$ 8,221	$ 18,597
Purchased this period	5,564	44	5,608
Reduction this period	( 1,828)	( 386)	( 2,214)
Net exchange difference	( 115)	-	( 115)
Dec 31, 2025 balance	$ 13,997	$ 7,879	$ 21,876

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Accumulated amortization and impairment

Jan 1, 2025 balance	($ 6,604)	($ 7,751)	($ 14,355)
Amortized this period	( 3,350)	( 323)	( 3,673)
Reduction this period	1,828	386	2,214
Net exchange difference	87	-	87
Dec 31, 2025 balance	($ 8,039)	($ 7,688)	($ 15,727)
Dec 31, 2025 net	$ 5,958	$ 191	$ 6,149
Cost
Jan 1, 2024 balance	$ 13,509	$ 7,812	$ 21,321
Purchased this period	1,670	872	2,542
Reduction this period	( 4,830)	( 463)	( 5,293)
Net exchange difference	27	-	27
Dec 31, 2024 balance	$ 10,376	$ 8,221	$ 18,597

Accumulated amortization and impairment

Jan 1, 2024 balance	($ 8,791)	($ 7,612)	($ 16,403)
Amortized this period	( 2,630)	( 602)	( 3,232)
Reduction this period	4,830	463	5,293
Net exchange difference	( 13)	-	( 13)
Dec 31, 2024 balance	($ 6,604)	($ 7,751)	($ 14,355)
Dec 31, 2024 net	$ 3,772	$ 470	$ 4,242

Except for the recognition of amortization expenses and acquisition of subsidiaries, the other intangible assets of the consolidated company did not have significant additions, disposals and impairment in 2025 and 2024.

Amortization expenses are accrued on a straight-line basis based on the following durability years :

Software costs	3 to 4 years
Other intangible assets	3 years

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18. Borrowing

a. Short-term loan

	Dec 31, 2025	Dec 31, 2024
Unsecured loans
Credit loan	$3,330,000	$3,060,000
Secured loans
Bank loan	-	500,000
	$3,330,000	$3,560,000

(1) The interest rates of bank revolving loans were 1.80%~1.88% and 1.58%~2.11% as of December 31, 2025 and 2024, respectively.

(2) The secured loan was secured by investment property, plant, equipment as of December 31, 2024 (please refer to Note 14 and 30).

b. Short-term Note Receivable—Commercial Promissory Receivable

Guarantee Agency	Dec 31, 2024
	Interest rate	Amount
Unsecured
IBFC Bills	1.81%	$100,000

c. Long-Term Loan

	Interest rate	Dec 31, 2025	Dec 31, 2024
Bank of Taiwan
Land mortgage loan on Chang Hwa nylon plant 03.30.2021~03.30.2028 Interests to be paid monthly, the total loan amount is NT$ 1 billion, loan repayment cycle is 6 months starting from 2023.09.30, the principal NT$55,000 thousand is to be repaid in the first 9 months, the remaining principal is to be settled by maturity. (The principal for the two installments due in 2025 was prepaid in 2024)	2.08770%~2.21990%	$ 725,000	$ 725,000
Chang Hwa Bank Interests paid monthly to Bank for Taipei branch's land and building mortgage loan 11.29.2024~03.27.2027, total loan amount is NT$375 million with principal repayment by maturity. (Note 1)	2.38622%	-	375,000
Chang Hwa Bank

43 -

Interests paid monthly to Bank for Taipei branch’s land and building mortgage loan 12.24.2025～12.24.2028, total loan amount is NT$375 million with principal repayment by maturity.	2.38800%	350,000	-
KGI Bank
Interests paid monthly to Bank for Taipei branch’s long-term credit loan 12.23.2024～11.07.2026, total loan amount is NT$500 million with principal repayment by maturity.(Note 2)	2.19589%	-	500,000
KGI Bank
Interests paid monthly to Bank for Taipei branch’s long-term credit loan 12.26.2025～12.01.2027, total loan amount is NT$500 million with principal repayment by maturity.	2.20000%	500,000	-
Export-Import Bank
Interests paid monthly to Bank for Taipei branch’s long-term credit loan 03.25.2023～03.25.2028, Interest is payable monthly, total loan amount is NT$144 million, with NT$18,000 thousand and shall be repaid every 6 months, cycle starts from 09.25.2024 till maturity. (The principal for the two installments due in 2025 was prepaid in 2024)	2.20400%~2.38680%	90,000	90,000
Export-Import Bank
Interests paid monthly to Bank for Taipei branch’s long-term credit loan 09.22.2025～09.22.2028, Interest is payable monthly, total loan amount is NT$400 million, with NT$25,000 thousand and shall be repaid every 6 months, cycle starts from 03.22.2027 till maturity.	0.98520%	100,000	-
		1,765,000	1,690,000
Less : Partially transferred to current liabilities due within one year		( 146,000)	-
		$ 1,619,000	$ 1,690,000

Note1: The maturity date of the original loan was Mar 27, 2027. The company paid in advance in Jan 2025.

Note2: The maturity date of the original loan was Nov 7, 2026. The company paid in advance in Jan 2025.

The long-term loans on December 31, 2025 and 2024 were collateral for Property, Plant and Equipment, please refer to Note 14, 16 and 30.

Other Account Payable

	Dec 31, 2025	Dec 31, 2024
Salary and bonus payable	$154,662	$154,252
Bonuses payable to employees and remuneration to directors and supervisors	2,261	6,449
Other payables-related party (Note 29)	20,536	38,894
Collection and payment	18,464	160,493
Other payables	327,913	311,577
	$523,836	$671,665

Retirement Benefit Plans

a. Defined contribution plans

The pension system of the "Labor Pension Act" applicable to Li Peng Enterprise and its local subsidiaries is a government-managed retirement plan. The retirement pension is allocated to the labor insurance bureau based on 6% of the employee's monthly salary.

Subsidiaries in mainland China, in accordance with China government laws and regulations, provide pension insurance funds based on a certain percentage of the total salary of employees with payments made to relevant government departments, as well as into the individual's savings account of each employee.

Foreign subsidiaries contribute to pension funds in accordance with local laws and regulations.

b. Defined benefit plans

Li Peng Enterprise has defined benefit plans under the R.O.C. Labor Standards Law that provide benefits based on an employee's length of service and average monthly salary for the six-month period prior to retirement. The consolidated 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 consolidated 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 consolidated 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 the government's designated authorities; specifically, the Funds are managed by the Bureau of Labor Funds, Ministry of Labor. As such, the consolidated company does not have any right to intervene in the investments of the Funds.

Amounts recognized in respect of these defined benefit plans were as follows :

Changes to net defined benefit liability (asset) are as follows :

	Dec 31, 2025	Dec 31, 2024
Present value of defined benefit obligation	$ 335,455	$ 340,847
Fair value of plan assets	( 161,118)	( 157,537)
Net defined benefit liability	$ 174,337	$ 183,310
	Present value of defined benefit obligation	Fair value of plan assets
---	---	---
Jan 1, 2025 balance	$ 340,847	($ 157,537)
Service cost
Current service cost	1,412	-
Previous service cost	589	-
Net interest expense (income)	5,155	( 2,457)
Remeasurement on the net defined benefit	7,156	( 2,457)
Remeasurement
Return on plan assets (excluding amounts included in net interest expense)	-	( 10,766)
Actuarial loss (gain)
—changes in financial assumptions	3,648	-
Actuarial loss (gain)
—from experience adjustment	6,551	-
Recognized in other comprehensive income	10,199	( 10,766)
Paid by employer	-	( 12,500)
Benefit costs	( 22,515)	22,142
Net exchange difference	( 232)	-
Dec 31, 2025	$ 335,455	($ 161,118)
Jan 1, 2024 balance	$ 343,639	($ 138,843)
Service cost
Current service cost	1,848	-
Previous service cost	1,832	-
Net interest expense (income)	4,367	( 1,812)
Remeasurement on the net defined benefit	8,047	( 1,812)
Remeasurement
Return on plan assets (excluding amounts included in net interest expense)	-	( 12,085)
Actuarial loss (gain)
—changes in financial assumptions	( 7,781)	-
Actuarial loss (gain)
—from experience adjustment	7,447	-

Recognized in other comprehensive income
Paid by employer
Benefit costs
Net exchange difference
Dec 31, 2024

	2025	2024
Categorized by functions
Operating cost	$ 3,707	$ 5,139
Management expense	749	798
R&D expense	243	298
	$ 4,699	$ 6,235

Amounts recognized in profit or loss in respect of these defined benefit plans analyzed by function were as follows:

	2025	2024
Investment risk: The pension funds are invested in domestic (foreign) equity and debt securities, bank deposits, etc. The investment is carried out by the Labor Fund Utilization Bureau of the Ministry of Labor by its own use and entrusted management. However, the distribution amount of the planned assets of Li Peng Enterprise shall not be less than the average interest rate on a two-year time deposit published by the local banks.
(2) Interest risk: The decrease in the interest rate of corporate bonds will increase the present value of the defined benefit liabilities; however, the debt investment returns of the planned assets will also increase accordingly. The effects of the two on the net defined benefit liabilities will partially offset the effect..
(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 present value of the plan assets and defined benefit obligations of Li Peng Corporation and PT. INDONESIA HWALIN are actuarial calculations performed by qualified actuaries. The key assumptions on the measurement date are as follows :

	Dec 31, 2025	Dec 31, 2024
Discount rate	1.375% ~ 6.77%	1.50% ~ 7.14%
Future salary increase rate	2.50% ~ 5.00%	2.50% ~ 5.00%

If the major actuarial assumptions are subject to reasonably possible changes, and all other assumptions remain unchanged, the amount that will increase (decrease) the present value of the defined benefit obligation is as follows :

	Dec 31, 2025	Dec 31, 2024
Discount rate
Increase 0.25%	($ 7,426)	($ 7,908)
Decrease 0.25%	$ 7,718	$ 7,975
Expected salary increase rate
Increase 0.25%	$ 7,517	$ 8,028

Decrease 0.25% $(\$ 7,265)$ $(\$ 7,956)$

Since actuarial assumptions may be related, it is unlikely that only a single assumption will change, so the above sensitivity analysis may not reflect the actual changes in the present value of the defined benefit obligation.

	Dec 31, 2025	Dec 31, 2024
Expected withdrawn within 1 year	$ 12,571	$ 12,899
Defined benefit obligation average maturity	8.60~18.42 years	8.90~18.00 years

21. Equity

a. Shares

Common share

	Dec 31, 2025	Dec 31, 2024
Authorized shares (in thousands)	1,200,000	1,200,000
Authorized capital	$12,000,000	$12,000,000
Issued and paid shares (in thousands)	910,071	910,071
Issued capital	$ 9,100,712	$ 9,100,712

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

b. Capital Surplus

	Dec 31, 2025	Dec 31, 2024
Using equity method to recognize the capital reserve of associates	$ 92,187	$ 87,214
Difference between consideration and carrying amount of subsidiaries acquired or disposed (Note26)	1,887	1,887
Recognition of changes in ownership and equity of subsidiaries	435	435
Treasury stock trading	124,651	124,651
	$ 219,160	$ 214,187

The excess from the issuance of stocks in excess of the par value in the capital reserve (including the issuance of ordinary shares in excess of the par value, the share premium of the issuance of shares due to mergers, treasury stock transactions, and the difference in the book value of the acquisition or disposal of the equity price of a subsidiary company, etc.) and receiving gifts with proportional income can be used to make up for losses, and can also be used to pay cash dividends or to capitalize when the consolidated company isn't operating at a loss. However, the capital to be capitalized is limited to a fixed percentage of the paid-in capital each year.

The capital reserve generated by the investment using the equity method and all changes in the equity of the subsidiaries can only be used to make up for losses.

c. Retained earnings and dividend policy

I. According to the surplus distribution policy of the consolidated company, if there is a surplus in the financial account at year end, the earnings shall first make up for the accumulated losses, and then to allocate 10% of the earnings according to the law as the statutory surplus reserve, but the statutory surplus reserve has reached the actual income of the total amount of capital, which may be exempted from continuing to be listed; the special surplus reserve may be transferred or converted into a special surplus reserve according to laws or regulations or by the authority. If there is a balance remained, add the accumulated undistributed surplus at the beginning of the period as the distributable surplus by allocating 0% to 100% of the distributable surplus. The board of directors will draft a surplus distribution proposal and submit it to the shareholders meeting for approval. In addition, the cash dividend must not be less than 5% of the total dividend, but if the cash dividend per share is less than NT$0.1, it may be changed to offer stock dividends. Due to the volatile industrial business environment and the development of diversification, the board of directors may decide to change to offer stock dividends based on the capital budget and funds available. Please refer to Note 23 (7) Employee Compensation and Board of Directors' Compensation for the compensation policy stipulated in the policy articles of the consolidated company.

II. The appropriations of the 2024's and 2023's loss compensation cases have been approved by the company's regular meeting of shareholders in its meetings held on June 13, 2025 and June 21, 2024, respectively.

III. On March 16, 2026, the board of directors of Company proposed a loss appropriation plan for 2025. The loss appropriation proposal for 2025 is yet to be resolved at the regular shareholders' meeting expected to be held in June 2026.

The information about the company's appropriation of loss as resolved by the shareholders' meeting is available at the Market Observation Post System website.

The legal capital reserve shall be allocated until the balance reaches the total paid-up share capital of the consolidated company. The legal capital reserve can be used to make up for losses. When the consolidated company is not operating under losses, the part of the legal capital reserve exceeding 25% of the total paid-up share capital can be allocated in cash in addition to the capital.

d. Other equity

Foreign Organization Financial report Exchange difference

	Dec 31, 2025	Dec 31, 2024
Balance at the beginning of the year	($14,434)	($35,349)
Occurrence in the year
Foreign operating organization translation differences	(46,130)	20,915
Other comprehensive income for the year	(46,130)	20,915
Balance at the end of the year	($60,564)	($14,434)

Financial assets unrealized profit and loss at fair value through other
48 -

comprehensive income

	Dec 31, 2025	Dec 31, 2024
Balance at the beginning of the year	($414,394)	($174,221)
Occurrence in the year
Unrealized gains and losses
Equity instruments	( 217,976)	( 112,124)
Share of associated enterprises using the equity method	( 278,038)	( 135,785)
Other comprehensive income for the year	( 496,014)	( 247,909)
Changes in associated companies recognized using the equity method	-	( 8)
Accumulated gains and losses on disposal of equity instruments are transferred to retained earnings	11,416	7,744
Balance at the end of the year	($898,992)	($414,394)
e. Non-controlling interests
	2025	2024
Balance, beginning of the year	$ 927,953	$ 968,659
Share attributable to uncontrollable equity
Net profit (loss) in this period	12,221	33,136
Exchange differences on translation of foreign financial statements	( 3,639)	918
Unrealized gains and losses of financial assets measured at fair value through other comprehensive income	( 157,836)	( 86,070)
Disposal of equity instruments measured at fair value through other comprehensive income	( 5,629)	-
Disposal of interests in subsidiaries (Note 26)	( 1,764)	-
Adjustment of changes in capital reserves of associated companies using the equity method	1,120	11,353
The disposal of parent company's shares by a subsidiary is deemed as treasury stock transaction	-	2,459
Actuarial loss and gain adjustment from subsidiaries	( 15)	48

49 -

Cash dividends of the company received by subsidiaries
Balance, end of year
( 4,500 ) ( 2,550 )
$ 767,911 $ 927,953

f. Treasury stock

(1) The changes in shares held by the consolidated company and its subsidiaries in 2025 and 2024 are as follows:

2025
Reason for withdrawal	Shares, beginning of year	Increase	Decrease	Shares, end of year
Parent company's shares held by subsidiary	66,529,106	-	-	66,529,106
2024
Reason for withdrawal	Shares, beginning of year	Increase	Decrease	Shares, end of year
Parent company's shares held by subsidiary	67,029,106	-	500,000	66,529,106

(2) The purpose of holding Li Peng Enterprise's shares by subsidiaries is to protect shareholders' rights and interests, relevant information is as follows:

Subsidiary	Shares held	Amount transferred to treasury stock
Dec 31, 2025
Li Mao Investment Co.	34,177,995	$ 148,007
Hung Hsing Investment Co.	24,341,087	104,695
Li Shing Investment Co.	8,010,024	34,440
		$ 287,142
Dec 31, 2024
Li Mao Investment Co.	34,177,995	$ 148,007
Hung Hsing Investment Co.	24,341,087	104,695
Li Shing Investment Co.	8,010,024	34,440
		$ 287,142

(3) In 2024, Hung Hsing Co. and Li Shing Co. sold a total of 500,000 shares of Li Peng Co. stock, receiving disposal proceeds of NT$5,231 thousand.
(4) On December 31, 2025, the company listed the amount of NT$287,142 thousand transferred to the treasury stocks of the company held by its subsidiaries. The listed amounts have been adjusted according to the company's shareholding ratio in subsidiaries. The market price of the company's shares as of December 31, 2025 was NT$5.40 per share.
(5) Subsidiaries holding the Li Peng Enterprise's shares shall be treated as treasury stocks, except for not participating in cash reserve increment and not having voting rights, the other rights remain the same as general shareholders.

50 -

Income

	2025	2024
Nylon Chip	$ 2,529,796	$ 4,527,832
Nylon Yarn	1,041,985	1,542,772
Woven (knitted) fabrics	3,812,551	3,482,139
Petrochemical Products	18,994,099	23,827,160
Others	1,480,604	1,445,320
	$ 27,859,035	$ 34,825,223

Continuing operation unit net profit

a. Interest income
	2025	2024
Interest income
Bank deposits	$ 42,457	$ 74,371
Interests from related parties	31,796	26,568
Other	352	-
	$ 74,605	$ 100,939
b. Other income
	2025	2024
Lease income	$ 22,531	$ 23,306
Dividend income	5,775	2,246
Other	15,145	17,369
	$ 43,451	$ 42,921
c. Other gains and losses
	2025	2024
Gain on disposal of property, plant and equipment	$ 5,240	$ 4,471
Gain (loss) on foreign exchange, net	( 129,045)	344,120
Gain on financial assets and liability at FVTPL, net	14,912	59,055
Profits from disposal of financial assets	232	17,592
Lease modification losses	-	( 248)
Impairment loss on property, plant and equipment	( 314,778)	-
Other losses	( 45,208)	( 8,979)
	$ 468,647	$ 416,011
d. Financial cost
	2025	2024
Interests of lease liability	$ 2,410	$ 2,790
Interest of bank loan	106,750	98,474
Interest of loan from related	8,913	3,031

parties

Financial expenses	484	366
	$ 118,557	$ 104,661

Information about interest capitalization is as follows :

	2025	2024
Interest capitalization amount	$ 1,144	$ 815
Interest capitalization rate	2.10166%-	2.10374%-
	2.26036%	2.50170%

e. Depreciation and amortization

	2025	2024
Property, plant and equipment	$ 556,243	$ 591,275
Right of use assets	2,979	3,270
Intangible assets	3,673	3,232
Down payment	68,265	64,664
Total	$ 631,160	$ 662,441
Categorized depreciation expenses by function
Operating cost	$ 528,323	$ 579,270
Operating expenses	9,224	11,227
Other loss of profits	21,675	4,048
	$ 559,222	$ 594,545
Categorized amortization expenses by function
Operating cost	$ 70,051	$ 64,411
Operating expenses	1,772	3,485
Other loss of profits	115	-
	$ 71,938	$ 67,896

f. Expenses for employee benefits

	2025			2024
	Operating cost	Operating expenses	Total	Operating cost	Operating expenses	Total
Short-term employee benefits	$ 767,363	$ 177,661	$ 945,024	$ 764,891	$ 195,155	$ 960,046
Retirement benefits
Defined contribution plan	20,040	5,833	25,873	19,884	5,810	25,694
Defined benefit plan (Note 20)	3,707	992	4,699	5,139	1,096	6,235
	23,747	6,825	30,572	25,023	6,906	31,929
Compensation to directors	-	4,780	4,780	-	6,992	6,992
Other employee benefit	66,988	10,911	77,899	75,778	11,950	87,728
Total expenses of employee benefit	$ 858,098	$ 200,177	$1,058,275	$ 865,692	$ 221,003	$1,086,695

g. Employees' and Boards' remunerations

53 -

After Amendment of the Articles of Incorporation

According to the provisions of the Li Peng Enterprise's policy articles, the company uses the pre-tax benefits of the current year to deduct the remuneration of employees and directors at a rate of no less than 1% for employees' compensation and no more than 5% for directors' compensation. In accordance with the amendment to the Securities and Exchange Act in August 2024, the Company further amended its Articles of Incorporation as approved by the shareholders' meeting in June 2025. The amended Articles additionally stipulate that not less than 1% of the current year's pre-tax profit shall be allocated for salary adjustments or compensation for grassroots employees. However, if the Company has accumulated losses, an amount shall first be reserved to offset such losses, and the remaining balance shall then be appropriated for employee compensation, directors' remuneration, and salary adjustments or compensation for grassroots employees in accordance with the aforementioned percentages.

Before Amendment of the Articles of Incorporation

In 2025, the Company recorded a pre-tax losses, and in 2024, pre-tax profit occurred, while it was first used to offset accumulated losses, so employees' compensation and directors' compensation are not estimated.

For information on employees' compensation and directors' compensation of the Li Peng Enterprise's 2026 and 2025 board resolutions, please refer to the "Public Information Observatory" of the Taiwan Stock Exchange website.

24. Continuing operating business unit's income tax

a. The main components of income tax profit recognized in profit and loss :

	2025	2024
Current income tax expense
Recognized in the current year	$ 21,916	$ 23,434
Income tax on unappropriated earnings	1,591	444
Adjustments on prior years	207	(63)
	23,714	23,815
Deferred income tax
Recognized in the current year	(121,605)	(22,111)
Adjustment on prior year	74	-
	(121,531)	(22,111)
Income tax profit recognized in profit and loss	($ 97,817)	$ 1,704

The adjustment of accounting income and current income tax profit is as follows :

	2025	2024
Income tax profit at the statutory tax rate for net loss before tax	($ 189,842)	$ 19,639
Tax effect of adjusting items
Investment profit recognized by the equity method	( 13,304)	( 23,804)
Financial asset evaluation profit	( 3,419)	( 2,760)
Loss (gain) on disposal of investment	2,369	( 3,355)
Realized investment losses	-	( 19,598)
Taxable dividend income	2,406	-
Tax-free dividend losses are not deductible	( 363)	( 449)
Adjustment on expense distribution of tax-exempt gains derived from the securities transactions and interest expense	82	84
Other	17,504	13,792
Tax-free dividend losses are not deductible	20,274	17,337
Adjustment on income tax expenses in prior year	281	( 63)
Unrealized loss deductions	64,604	437
Income tax on unappropriated earnings	1,591	444
Income tax profit recognized in profit and loss (benefit)	$ 97,817	$ 1,704
b. Current tax assets and liabilities
	Dec 31, 2025	Dec 31, 2024
Current tax assets	$ 15,604	$ 18,040
Current tax liabilities	$ 11,259	$ 14,436
c. Deferred income tax assets and liabilities
	Dec 31, 2025	Dec 31, 2024
Deferred income tax assets
Temporary difference
Allowance for impairment loss on inventory	$ 85,776	$ 79,963
Unallocated inventory cost for manufacturing	19,013	17,173
Unrealized investment loss	5,042	5,042
Defined actuarial profit and loss of retirement plan	13,285	14,851
Sales discount	609	100
Loss deduction	378,726	338,243

54 -

d. The deducted amount of unlisted losses of deferred income tax assets not recognized in the consolidated balance sheet.

	Dec 31, 2025	Dec 31, 2024
Loss deduction
Due in 2030	$ -	$ 3,137
Due in 2031	323,020	9,780
Due in 2032	-	6,699
Due in 2033	-	2,427
Due in 2034	-	2,185
	$ 323,020	$ 24,228

e. Unlisted loss deduction information

As of Dec 31, 2025, the loss deduction information is as follows :

Balance yet deducted	Year due
$ 374,923	2029
722,522	2030
429,884	2033
153,881	2034
532,099	2035
$ 2,213,309

f. The tax returns of Li Peng Enterprise, Li Mao Co., Li Shing Co., Hung Hsing Co., Eton Petrochemical Co., and PT. INDONESIA HWALIN have been assessed by the tax authorities until 2023.

(Loss) earnings per share

The company's (loss) earnings per share in 2025 and 2024 is as calculated as follows :

Amount (numerator)	Gain (loss) per share (NTD)
£ 1,000	£ 1,000
£ 1,000	£ 1,000
£ 1,000	£ 1,000

56 -

| | Net (loss) income
(Belong to company’s shareholder) | Share (denominator)
(thousand share) | Net (loss) income
(Belong to company’s shareholder) |
| --- | --- | --- | --- |
| 2025 | | | |
| Basic loss per share | | | |
| The net loss attributable to ordinary shareholders for the period | ($849,589) | 874,676 | ($ 0.97) |
| Dilutive loss per share | | | |
| The net loss attributable to ordinary shareholders for the period | ($849,589) | 874,676 | ($ 0.97) |
| 2024 | | | |
| Basic earnings per share | | | |
| The net income attributable to ordinary shareholders for the period | $ 39,939 | 874,566 | $ 0.04 |
| Effect of dilutive potential common shares | | | |
| Diluted net income for ordinary shareholders for the period | $ 39,939 | 874,566 | $ 0.04 |

26. Dispose of a subsidiary

In Jan 2, 2025, the company purchase of 183,600 shares of equity of LIBOLON ENERGY CO. LTD from associated company of Rich Development Co., Ltd, the shareholding ratio increased from 70% to 100%: As LIBOLON ENERGY CO. LTD. conducted a cash capital increase, the Company did not subscribe in proportion to its shareholding, resulting in its ownership interest decreasing from 100% to 40%. Consequently, the Company lost control over the subsidiary and reclassified the investment as an equity-method investment.

a. Analysis of assets and liabilities upon loss of control

	LIBOLON ENERGY
	C O .	L T D
Current Assets
Cash and cash equivalents	$	900
Financial assets at fair value through profit or loss		4,561
Prepayments		9,481
Non-current assets
Prepayment for equipment		171,781
Current liability
Other payable	(	842)
Other payable	(	180,000)
Carrying amount of disposed assets	$	5,881

The consolidated company decreased by NT$1,764 thousand due to the loss of control over LIBOLON ENERGY CO. LTD.

b. Net cash outflow arising from the disposal of a subsidiary

	LIBOLON ENERGY
	C O . L T D
Cash and cash equivalents of subsidiaries disposed of	($ 900)

27. Capital risk management

The consolidated company conducts capital management to ensure that it can be withdrawn before continuing to operate, and maximizes shareholder compensation by optimizing the balance of debt and equity. The overall strategy of the company has not changed.

The consolidated company has no other restrictions on external capital regulations.

28. Financial instruments

a. Fair value information — Financial instruments not measured at fair value

The management of the company believes that the book value of financial assets and financial liabilities that are not measured at fair value reaches their fair value or their fair value cannot be reliably measured.

b. Fair value information — Financial instruments measured at fair value on a repeatability basis

Dec 31, 2025

	Level 1	Level 2	Level 3	Total
Financial assets at fair value through profit or loss
Derivative financial instruments — Cross-currency swap contracts	$ -	$ 317	$ -	$ 317
Domestic listed (OTC) stocks	110,439	-	-	110,439
Fund beneficiary certificate	354,713			354,713
Domestic not listed (OTC) common stocks	-	-	5,527	5,527
Not listed abroad (OTC) common stocks			320	320
Financial products	-	19,824-	-	19,824
	$465,152,	$ 20,141	$ 5,847	$ 491,140
Financial assets measured at fair value through other comprehensive income
Domestic listed stocks	$1,197,647	$ -	$ -	$1,197,647
Financial liability at fair value through profit or loss
Derivative financial	$ -	$ 6	$ -	$ 6

instruments—
Cross-currency swap contracts

Dec 31, 2024

	Level 1	Level 2	Level 3	Total
Financial assets at fair value through profit or loss	$	$ 2,465	$ -	$ 2,465
Domestic listed (OTC) stocks	65,461	-	-	65,461
Fund beneficiary certificate	100,861			100,861
Domestic not listed (OTC) common stocks	-	-	5,744	5,744
Not listed abroad (OTC) common stocks			320	320
Structured deposits	-	9,026		9,026
	$ 223,024	$ 11,491	$ 6,064	$ 240,579
Financial assets measured at fair value through other comprehensive income
Domestic listed stocks	$1,762,969	$ -	$ -	$1,762,969

No transfer of the fair value measurement between level 1 and level 2 in year 2025 and 2024.

c. Valuation techniques and assumptions used in level 2 fair value measurement :

Type of financial instruments	Evaluation technology and input value
Derivative financial instruments—Cross-currency swap contracts	Discounted cash flow method: Estimate the future cash flow based on the exchange rate calculated in the observable exchange contract at the end of the period, and discount it separately at a rate that can reflect the credit risk of each counterparties.
Structured deposits and Financial products	Measured using publicly quoted market prices provided by third-party institutions

d. Valuation techniques and assumptions used in level 3 fair value measurement :

Non-publicly traded (OTC) equity investment adopts the asset method to reflect the overall value of the investment target based on the total value of individual assets and liabilities.

e. Types of financial instruments

	Dec 31, 2025	Dec 31, 2024
Financial assets
Measured at FVTPL
Mandatorily measured at FVTPL	$ 491,140	$ 240,579
Financial assets measured by amortized cost (Note 1)	4,633,100	5,906,758

59 -

Financial assets measured through other comprehensive income
Equity instrument investment	1,197,647	1,762,969
Financial liabilities
Measured at FVTPL
Mandatorily measured at FVTPL	$ 6	$ 6
Financial liabilities measured by amortized cost (Note 2)	6,888,453	8,102,574

Note 1: The balance includes cash and cash equivalents, notes and accounts receivable, other accounts receivable, Loan to related parties, refundable deposits and financial assets measured by amortized cost.

Note 2: The balance includes short-term loans, short-term bills payable, bills payable, accounts payable, other payables, loan from related parties, long-term loan, guarantee deposit received and financial liabilities measured by amortized cost.

f. Derivative financial products

The realized net profit from the operation of derivative financial products in 2025 was NT$ 6,575 thousand which unrealized gain of NT$311 thousand and realized gain of NT$6,264 thousand, respectively and list in other profit and loss.

The realized net profit from the operation of derivative financial products in 2024 was NT$ 71,885 thousand which unrealized gain of NT$2,465 thousand and realized gain of NT$69,420 thousand, respectively and list in other profit and loss.

g. Financial risk management objectives and policies

The main financial instruments of The consolidated company include equity and debt investments, borrowings, lease liabilities, accounts receivable and accounts payable, etc. The financial management department of the company provides services for various business units, coordinates access to domestic and international financial markets, and supervises and manages the financial risks related to the operations of the company by analyzing internal risk reports based on the degree and breadth of risk. These risks include market risk (exchange rate risk), credit risk and liquidity risk.

The consolidated company uses derivative financial instruments to avoid the impact of exchange rate risk. The use of derivative financial instruments is regulated by the policies adopted by the board of directors of the company, which are written principles for exchange rate risk, credit risk, the use of derivative financial instruments and non-derivative financial instruments, and the investment of remaining liquid funds. Internal auditors continue to review compliance with policies and the risk limit. The consolidated company did not trade financial instruments (including derivative financial instruments) for speculative purposes.

60 -

(1) Market risk

The main financial risk of The consolidated company's operating activities that the company bears is the risk of foreign currency exchange rates.

(a) Exchange rate risk

Occur in future commercial transactions, recognized assets and liabilities, and foreign exchange trading transactions to avoid exchange rate changes.

The company's risk exposure related to financial instrument market risks and its management and measurement methods have not changed.

Sensitivity analysis

The consolidated company is mainly influenced by the USD exchange rate fluctuation.

The following table details the sensitivity analysis of the company when the exchange rate of the New Taiwan Dollar (functional currency) to the U.S. dollar increases and decreases by 0.5%. 0.5% is the assessment of the reasonably possible range of changes in the foreign currency exchange rate of the company. Sensitivity analysis includes only monetary items in foreign currencies in circulation, and their conversion at the end of the period is adjusted with a 0.5% change in exchange rate. The positive numbers in the following table represent the amount of increase in net profit before tax when the New Taiwan Dollar depreciates 0.5% relative to the relevant currencies; when the New Taiwan Dollar appreciates 0.5% relative to the relevant currencies, its impact on the net profit before tax will be the same negative number of the amount.

	Dec 31, 2025	Dec 31, 2024
0.5% difference in the exchange rate of USD profit and loss	$ 10,231	$ 8,570

(b) Interest rate risk

The Company is exposed to interest rate risk because entities in the Company borrows funds at both fixed and floating interest rates.

The carrying amounts of the Company's financial assets and financial liabilities with exposure to changes in interest rates at the end of the reporting period were as follows:

	Dec 31, 2025	Dec 31, 2024
Fair value interest rate risk
—Financial assets	$ 1,467,504	$ 1,791,128
—Financial liabilities	1,500,997	3,386,465
Cash flow interest rate risk

Financial liabilities

3,620,000

1,990,000

The interest rate sensitivity analysis assumes a 1% increase or decrease in interest rates. As of 2025 and 2024, the cash outflows/inflows for the Company were NT$36,200 thousand and NT$19,900 thousand, respectively.

(2) Credit risk

Credit risk refers to the risk of The Company's financial losses caused by the counterparty's default of contract obligations. In order to reduce credit risk, the consolidated company has the right to request for collateral or other guarantees from major transaction partners. Accordingly, the management of the consolidated company believes that the credit risk has been significantly reduced.

(3) Liquidity risk

The consolidated company manages and maintains sufficient cash and cash equivalents to support the company's operations and reduce the impact of cash flow fluctuations. The management of the consolidated company supervises the use of bank financing lines and ensures compliance with the terms of the loan contract.

Bank borrowings represent an important source of liquidity for the consolidated company. For the unused financing amount of the consolidated company, please refer to the following (c) Financing Description. The consolidated company and is compiled based on the undiscounted cash flows of financial liabilities (including principal and estimated interest). Therefore, the bank loans that the company can be required to repay immediately are within the earliest period in the table below, regardless of the probability of the bank immediately executing the right; the maturity analysis of other non-derivative financial liabilities is compiled in accordance with the agreed repayment date. Analysis as below:

Dec 31, 2025

Non-derived financial liabilities	In 1 year	1 to 2 years	Over 2 years
Short-term loan	$3,330,000	$ -	$ -
Short-term bills payable	0	-	-
Notes payable (including related parties)	39,379	-	-
Accounts payable (including related parties)	949,695	-	-
Other payable	318,190	-	-
Loan from related parties	488,018	-	-

Current provisions	7,715	-	-
Lease liabilities (current and non-current)	5,133	5,133	23,932
Long-term loan (including 1 year or due within the operating cycle)	146,000	696,000	923,000
Guarantee deposits received	-	776	-
	$5,284,130	$701,909	$946,932

Dec 31, 2024

Non-derived financial liabilities	In 1 year	1 to 2 years	Over 2 years
Short-term loan	$3,560,000	$ -	$ -
Short-term bills payable	100,000	-	-
Notes payable (including related parties)	22,070	-	-
Accounts payable (including related parties)	2,188,190	-	-
Other payable	461,545	-	-
Loan from related parties	80,000	-	-
Lease liabilities (current and non-current)	5,277	5,277	26,385
Current provisions	501	-	-
Long-term loan (including 1 year or due within the operating cycle)	-	110,000	1,580,000
Guarantee deposits received	-	769	-
	$6,417,583	$116,046	$1,606,385

(2) Liquidity for derivative financial liabilities

The following table detailed the Company's liquidity analysis for its derivative financial instruments. The table was based on the undiscounted contractual net cash inflows and outflows on derivative instruments that settle on a net basis, and the undiscounted gross inflows and outflows on those derivatives that require gross settlement.

Dec 31, 2025

Derived financial liabilities	In 1 year	1 to 2 years	2 to 5 years	Over 5 years
Net settled
Cross-currency swap contracts	$ 6	$ -	$ -	$ -

(3) Financing Facilities.

Unsecured Bank Loan Facilities

Dec 31, 2025

Dec 31, 2024

- Amount Utilized	$ 4,020,000	$ 3,750,000
- Amount Unutilized	10,509,205	8,638,793
	$ 14,529,205	$ 12,388,793
Secured Bank Loan Facilities
- Amount Utilized	$ 1,075,000	$ 1,600,000
- Amount Unutilized	925,431	150,000
	$ 2,000,431	$ 1,750,000

29. Trading with Related Parties

Transactions, account balances, income, and expenses between Lipeng Company and its subsidiaries (related parties of Lipeng Company) were entirely erased during the merger and are therefore not disclosed in this note. Transactions between the merged company and other related parties are as follows:

a. Related parties and association

Related parties	Relationship with the Company
KUO, SHAO-YI	Chairman
TUNG, MIN-HSIUNG	General Manager
LEALEA ENTERPRISE CO. LTD.	Investors with significant influence
LIBOLON ENERGY CO. LTD.	Associated company/Subsidiary (Effective as of January 4, 2025, has become an affiliate)
FU LI TRANSPORTATION CO.	Associated company
LEA JIE ENERGY CO., LTD.	Associated company
LIBOLON ENTERPRISE CO. LTD.	Associated company
RICH DEVELOPMENT CO. LTD.	Associated company
LI LING FILM CO. LTD.	Associated company
LEALEA TECHNOLOGY CO. LTD.	Associated company
LI ZAN INVESTMENT CO. LTD.	Associated company
LI HAO INVESTMENT CO. LTD.	Associated company
PT. INDONESIA LIBOLON FIBER SYSTEM	Associated company
APEX FONG YI TECHNOLOGY CO. LTD.	Other
LEALEA HOTELS & RESORTS CO., LTD.	Other(Ceased to be a related party effective as of January 2, 2025)

b. Operating Income

Accounting item	Related Party Category/Name	2025	2024
Sales revenue	Investor with significant influence	$ 347,550	$ 697,321
	Associated company	414,382	707,207
		$ 761,932	$ 1,404,528

The sale of goods to associated companies and other related parties is not significantly different from general transactions..

c. Purchases

Related Party Category	2025	2024
Investor with significant influence	$ 842,684	$ 896,898
Associated company	110,462	44,853
	$ 953,146	$ 941,751

The purchase of goods from associated companies and other related parties is not significantly different from general transactions..

d. Amounts receivable from related parties (excluding loans to related parties)

Accounting item	Related Party Category/Name	Dec 31, 2025	Dec 31, 2024
Note receivable	Associated company
	LI LING FILM	$ 14,953	$ 27,468
	Other	249	-
		15,202	27,468
Accounts receivable	Investors with significant influence	$ 24,033	$ 42,481
	Associated company	66,129	73,768
		90,162	116,249
Other receivables (excluding interest receivables)	Investors with significant influence	5,480	7,881
	LeaLea Enterprise
	Associated company	1,425	2,216
	Other	1	1
		6,906	10,098
		$ 112,270	$ 153,815

No guarantees were collected on outstanding receivables from related parties. No anticipated credit losses were recognized on receivables from related parties as of December 31, 2024 and 2023. The payment terms between the consolidated company and related parties are not materially different from those for general customers and suppliers.

e. Accounts payable to related parties (excluding borrowings from related parties)

Accounting item	Related Party Category/Name	Dec 31, 2025	Dec 31, 2024
Notes payable	Associated company	2,420	3,094
Accounts payable	Investors with significant influence
	Lealea enterprise	54,774	95,929
	Associated company	1,829	10,418
		56,603	106,347
Other payable (excluding interest payable)	Investors with significant influence
	Lealea enterprise	1,758	2,026
	Associated company
	Lea Jie Energy	13,345	27,079
	Lealea technology	2,611	3,832
	Fu Li transportation	913	5,316
	Other	902	331
		19,529	38,584
Payables for Acquisition of Equipment	Associated company	5	100-
		$ 78,557	$ 148,125

The balance of the outstanding accounts payable to related parties is not guaranteed.

f. Acquisition of property, plant and equipment

Related Party Category/Name	Accounting item	2025	2024
Associated company	Machinery and Equipment	$ 3,437	$ 1,255
	Office Equipment and Furniture	2,100	-
	Other Equipment	146	-
		$ 5,683	$ 1,255

g. Disposal of property, plant and equipment

	Disposal price		Disposal profit (loss)
Related Party Category/Name	2025	2024	2025	2024
TUNG, MIN-HSIUNG	$ 161-	$ -	$ 161-	$ 0

h. Acquisition of other assets

	Acquisition price
Related Party Category	Accounting item	2025	2024
Associated company	Other intangible assets — computer software	$ 4,822	$ 1,670

		Price of contracted but unfinished (untaxed)	Prepaid equipment balance
Related Party Category	Accounting item	Dec 31, 2025	Dec 31, 2025
Associated company
Lealea Technology	Software and Hardware	$ 679	$ -
		Price of contracted but unfinished (untaxed)	Prepaid equipment balance
Related Party Category	Accounting item	Dec 31, 2025	Dec 31, 2024
Associated company
Lealea Technology	Software and Hardware	$ 7,150	$ -

i. Equity acquisition

Related Party Category/Name	Accounting item	Transaction Date	Number of shares acquired	Acquired asset	Purchase price
Associated company	Investments accounted for using the equity method	January 2025	183,600	LIBOLON ENERG CO. LTD. Equity	$ 1,836
RICH DEVELOPMENT CO. LTD.

j. Loan to related parties

	Dec 31, 2025
	Highest balance	Balance, end of year	Interest range(%)	Interest income	Interest receivable
Investors with significant influence
Lealea enterprise	$ 213,000	$ -	1.839188~1.87812	$ 2,934	$ 63
Associated company PT. INDONESIA LIBOLON FIBER SYSTEM	719,882	700,575	2.45361~3.10000	16,985	1,532
Li Ling	349,000	289,000	2.39011~2.54537	7,727	623
Libolon Energy	250,000	170,000	2.41017~2.55517	4,150	367
		$ 1,159,575		$ 31,796	$ 2,585
	Dec 31, 2024
	Highest balance	Balance, end of year	Interest range(%)	Interest income	Interest receivable
Investors with significant influence
Lealea enterprise	$ 214,000	$ 213,000	1.69002~1.87844	$ 2,726	$ 77

The company provides short-term loans to investors with significant influence, at interest rates close to market rates.

k. Loan from related parties

	Dec 31, 2025
	Highest balance	Balance, end of year	Interest range (%)	Interest expense	Interest payable
Associated company
Li Hao Co.	$ 65,000	$ 60,000	1.83032~1.87210	$ 1,119	$ 93
Li Zan Co	32,000	32,000	1.83032~1.87210	442	50
Lealea enterprise.	398,460	396,018	2.53032~2.57210	7,352	864
		$ 488,018		$ 8,913	$ 1,007
	Dec 31, 2024
	Highest balance	Balance, end of year	Interest range (%)	Interest expense	Interest payable
Associated company
Li Hao Co.	$ 75,000	$ 65,000	1.69333~1.87226	$ 1,130	$ 113
Li Zan Co	42,000	15,000	1.69333~1.87226	309	24
Lealea enterprise.	350,000	-	2.29178~2.31733	1,592	73
		$ 80,000		$ 3,031	$ 210

The company borrowed from related parties at interest rates comparable to market rates. All loans from related companies and other related parties were unsecured loans.

Other

Purchases – freight	2025	2024
Associated company	$ 26,035	$ 41,641
Export expense	2025	2024
Associated company	$ 8,472	$ 14,552
Sale – freight	2025	2024
Investors with significant influence	$ -	$ 2
Rental income	2025	2024
Investors with significant influence
Lealea enterprise	$ 9,626	$ 7,709
Associated company
Lealea Technology	5,849	5,986
Other	2,769	2,512
Other	16	18
	$ 18,260	$ 16,225

The rental income collected by the company from related parties is based on the local general market rate, and the payment period is one-month promissory note.

Other income	2025	2024
Investors with significant influence
Lealea enterprise	$ 10,256	$ 14,473
Associated company
Li Ling	789	3,551
Other	401	446
Other	4	23
	$ 11,450	$ 18,493
Lease expense	2025	2024
Investors with significant influence
Lealea enterprise	$ 27,321	$ 28,825

The rent paid by the company to related parties is based on the local general market rate, and the payment period is one-month promissory note.

Tech service fees	2025	2024
Associated company
Lealea Technology	$ 26,105	$ 25,439
Other expense—steam	2025	2024
Investors with significant influence
Lealea enterprise	$ 6,841	$ 13,456
Services expense—coal disposal	2025	2024
Associated company
Lea Jie Energy	$ 1,143	$ 1,143
Fuel expense—coal	2025	2024
Associated company
Lea Jie Energy	$ 200,912	$ 272,617

m. Endorsements and Guarantees

As of December 31, 2025 and 2024, the Company's long-term and short-term borrowings and short-term notes payable were jointly guaranteed by Mr. Kuo, Shao-Yi, Chairman of the Company.

n. Salary of senior management

The total remuneration for directors and other senior management is as follows :

69 -

	2025	2024
Short-term employee benefits	$ 27,010	$ 25,298
Retirement benefits	463	479
	$ 27,473	$ 25,777

The remuneration of directors and senior management is determined by the remuneration committee in accordance with individual performance and market trends.

30. Pledged assets

The following assets of the consolidated company have been provided as collateral for financial institutions.

	Dec 31, 2025	Dec 31, 2024
Pledged deposit receipt (Note 6 and 10)	$ 2,000	$ 2,000
Financial assets at FVTOCI—non-current (Note 11)	25,976	38,231
Property, plant and equipment (Note 14)	2,651,203	2,762,512
Investment property (Note16)	40,532	-
	$ 2,719,711	$ 2,802,743

31. Significant contingent liabilities and unrecognized commitments

Except as mentioned in other notes, the consolidated company has the following major commitments and contingencies on the balance sheet date :

On December 31, 2025 and 2024, the consolidated company still has issued and unused letters of credit. The details are as follows:

	Unit: Foreign currency in thousands
	Dec 31, 2025	Dec 31, 2024
USD	$ 37,107	$ 88,848
JPY	11,496	331,244
NTD	42,000	60,722
RMB	-	103,675

32. Significantly influencing foreign currency financial assets and liabilities information

The following information is summarized and expressed in foreign currencies other than the functional currencies of the consolidated company. The disclosed exchange rates refer to the exchange rates of these foreign currencies into functional currencies. Foreign currency assets and liabilities with significant impact are as follows :

Unit: Foreign currency/NTD in thousand

Company	Financial assets	Dec 31, 2025
		Foreign currency	Exchange rate	Carrying amount
Li Peng Enterprise	Currency items USD	$ 85,464,124	31.43 (USD : NT$)	$ 2,686,137
Libolon (Shanghai) Co	USD	4,883,436	6.9907 (USD : RMB)	153,487
Eton Petrochemical Co.	USD	47,957,124	31.43 (USD : NT$)	1,507,292
In talent	USD	1,276	31.43 (USD : NT$)	40
PT. INDONESIA HWALIN	USD	4,948,665	16,782 (USD : IDR)	155,537
Li Shing Investment Co., Ltd.	USD	1,780,287	31.43 (USD : NT$)	55,954
Li Peng Enterprise	Non currency items Financial assets measured at FVMTPL-non-current USD	96,149	31.43 (USD : NT$)	3,022
”	Derivative financial instruments USD	4,000,000 (contract amount)	31.43 (USD : NT$)	317
”	Investment using equity method IDR	284,313,847,715	0.0018728 (IDR : NT$)	532,463
In talent	Investment using equity method RMB	62,218,345	4.496 (RMB : NT$)	279,734
Eton Petrochemical	Investment using equity method USD	349,974	31.43 (USD : NT$)	11,000
Company	Financial liabilities
Li Peng Enterprise	Currency items USD	30,095,995	31.43 (USD : NT$)	945,917
Libolon (Shanghai) Co	US	21,497	6.9907 (USD : RMB)	676

（承前頁）

		Dec 31, 2025
		Foreign currency	Exchange rate	Carrying amount
Eton Petrochemical Co.	USD	$ 44,865,867	31.43
(USD : NT$)	$ 1,410,134
PT. INDONESIA
HWALIN	USD	216,635	16,782
(USD : IDR)	6,809
	Non currency items
	Derivative financial
instruments
Li Peng
Enterprise	USD	2,000,000	31.43
(USD : NT$)	6
		Dec 31, 2024
Company	Financial assets	Foreign currency	Exchange rate	Carrying amount
	Currency items
Li Peng Enterprise	USD	$ 90,508,772	32.785
(USD : NT$)	$ 2,967,330
	JPY	206,935,629	0.2099
(JPY : NT$)	43,436
Libolon (Shanghai)
Co.	USD	6,458,141	7.3213
(USD : RMB)	211,729
Eton Petrochemical Co.	USD	57,362,461	32.785
(USD : NT$)	1,880,628
	RMB	2,477,993	4.478
(RMB : NT$)	11,096
In talent	USD	1,267	32.785
(USD : NT$)	42
PT. INDONESIA
HWALIN	USD	4,778,167	16,162
(USD : IDR)	156,652
Li Shing Investment
Co., Ltd.	USD	1,737,874	32.785
(USD : NT$)	56,976
	Non currency items
Li Peng Enterprise	Financial assets
measured at
FVMTPL-
non-current
	USD	96,149	32.785
(USD : NT$)	3,152
	Derivative
financial
instruments
	USD	10,000,000
(contract amount)	32.785
(USD : NT$)	2,645
	Investment using
equity method
	IDR	295,765,841,755	0.0020285
(IDR : NT$)	599,960
In talent	Investment using
equity method
	RMB	64,719,051	4.478
(RMB : NT$)	289,812

（承前頁）

Eton Petrochemical Co.	Investment using equity method USD	Dec 31, 2024
		Foreign currency	Exchange rate	Carrying amount
		$ 197,565	32.785
(USD : NT$)	$ 6,477
公司名稱	金融負債
	貨幣性項目
Li Peng Enterprise	USD	53,067,436	32.785
(USD : NT$)	1,739,816
Libolon (Shanghai) Co.	USD	1,068,027	7.3213
(USD : RMB)	35,015
Eton Petrochemical Co.	USD	53,955,799	32.785
(USD : NT$)	1,768,941
PT. INDONESIA HWALIN	USD	474,611	16,162
(USD : IDR)	15,560

The Group recognized unrealized foreign exchange losses of NT$129,045 thousand and unrealized foreign exchange gains of NT$344,120 thousand for the fiscal years 2025 and 2024, respectively. As the Group conducts foreign exchange transactions in a wide range of currencies, it is not practicable to disclose exchange gains and losses by individual foreign currencies with a significant impact.

33. Disclosed items in notes

a. Major transaction items :

(1) Loan to others. (Attached table 1)
(2) Provision of endorsements and guarantees to others. (Attached table 2)
(3) Holding marketable securities at the end of the period (excluding investment in subsidiaries, associates and joint venture equity). (Attached table 3)
(4) The amount of purchase and sale of goods with related parties reaches NT$100 million or more than 20% of the paid-in capital. (Attached table 4)
(5) Accounts receivables from related parties amount to NT$100 million or more than 20% of the paid-in capital. (Attached table 5)
(6) Other: business relationships and important transactions and amounts between parent and subsidiary companies and between subsidiaries. (Attached table 6)

b. reinvestment business related information. (Attached table 7)

c. Information on investments in China :

(1) The name of the mainland investee company, main business items, paid-in capital, investment methods, capital remittances and exits, shareholding ratio, investment gains and losses, investment book amount at the end of the period, repatriated investment gains and losses, and limits for investments to mainland China. (Attached table 8)

(2) The following major transactions, prices, payment terms, and unrealized gains and losses occurred directly or indirectly with the investee company in mainland China via the third region: (Attached table 9)

(a) The amount and percentage of purchases and the ending balance and percentage of related accounts payable.

(b) The amount and percentage of sales and the ending balance and percentage of related accounts receivable.

(d) The ending balance of the bill endorsement guaranteed or collateral provided and its purpose.

(e) The maximum balance, ending balance, interest rate range and total interest of the current period of the financial intermediation.

(f) Other transactions that have a significant impact on the current profit and loss or financial status, such as the provision or receipt of labor services.

Segment information

The information provided to chief operating decision-makers for allocating resources and evaluating departmental performance, focusing on the types of products or services delivered or provided. The reporting departments of the consolidated company are as follows:

Nylon department-mainly for the manufacture and sale of nylon CHIP and nylon yarn.

Weaving department-mainly for the manufacture and sale of woven fabrics and knitted fabrics

Trade department-mainly a sales base for various textile products and bulk raw materials

Yarn dyeing and other departments-mainly for the manufacturing and sales of dyed yarn

a. Departmental income and operational results

	2025
	Nylon department	Weaving department	Trade department	Yarn dyeing and other departments	Total	Adjustment and write-off	Total
Operating income (including allocation income)	$ 4,485,931	$ 4,383,929	$ 19,593,863	$ 382,115	$ 28,845,838	($ 986,803)	$ 27,859,035
Operating cost (including transfer cost)	( 5,201,702)	( 3,735,890)	( 19,354,338)	( 358,427)	( 28,650,357)	990,962	( 27,659,395)
Operating margin (loss)	( 715,771)	648,039	239,525	23,688	195,481	4,159	199,640
Operating expense	( 167,649)	( 355,117)	( 167,081)	( 11,967)	( 701,814)	4,425	( 697,389)
Operating profit (loss)	($ 883,420)	$ 292,922	$ 72,444	$ 11,721	($ 506,333)	$ 8,584	($ 497,749)
Non-operating income and expenses							($ 437,436)
Net loss before tax							($ 935,185)
	2024
	Nylon department	Weaving department	Trade department	Yarn dyeing and other departments	Total	Adjustment and write-off	Total
Operating income (including allocation income)	$ 7,717,454	$ 4,018,926	$ 24,389,863	$ 489,513	$ 36,615,756	($ 1,790,533)	$ 34,825,223
Operating cost (including transfer cost)	( 8,274,009)	( 3,387,358)	( 24,118,347)	( 454,231)	( 36,233,945)	1,794,403	( 34,439,542)

Operating margin (loss) ( 556,555) 631,568 271,516 35,282 381,811 3,870 385,681
Operating expense ( 261,977) ( 366,815) ( 156,126) ( 17,964) ( 802,882) 4,835 ( 798,047)
Operating profit (loss) ($ 818,532) $ 264,753 $ 115,390 $ 17,318 ($ 421,071) $ 8,705 ( 412,366)
Non-operating income and expenses 487,145
Net loss before tax $ 74,779

Departmental profit refers to the profits earned by each segment, excluding the share of profit or loss of associates accounted for under the equity method, gains or losses on the disposal of associates, rental income, interest income, gains or losses on the disposal of property, plant, and equipment, gains or losses on investments, net foreign exchange gains or losses, gains or losses from financial instruments' fair value changes, financing costs, and income tax expenses. This measure is provided to the chief operating decision maker for the purpose of allocating resources to segments and evaluating their performance.

b. Segment assets

	Dec 31, 2025
	Nylon department	Weaving department	Trade department	Yarn dyeing and other departments	Total	Adjustment and write-off	Total
Cash and cash equivalent	$ 100	$ 147,573	$ 327,700	$ 966,600	$ 1,441,973	$ -	$ 1,441,973
Financial assets measured at FVTPL	-	-	19,824	465,469	485,293	-	485,293
Notes and accounts receivable	246,072	315,647	599,508	4,505	1,165,732	( 7,379)	1,158,353
Loan to related parties receivable	-	-	-	1,745,310	1,745,310	( 585,735)	1,159,575
Inventory	947,847	1,117,146	12,817	33,666	2,111,476	( 2,138)	2,109,338
Other current assets	32,923	30,315	1,376,690	49,658	1,489,586	( 544,361)	945,225
Total current assets	1,226,942	1,610,681	2,336,539	3,265,208	8,439,370	( 1,139,613)	7,299,757
Financial assets measured at FVTPL	-	-	-	5,847	5,847	-	5,847
Financial assets measured at FVTOCI	-	-	-	1,556,904	1,556,904	( 359,257)	1,197,647
Investments using equity method	-	-	-	3,934,552	3,934,552	( 1,351,719)	2,582,833
Property, plant and equipment	1,937,069	1,781,354	18,354	396,241	4,133,018	( 32,102)	4,100,916
Right-of-use asset	4,116	16,962	-	-	21,078	-	21,078
Other intangible asset	40,532	-	-	-	40,532	-	40,532
Other non-current asset	2,307	3,430	-	412	6,149	-	6,149
Total assets	42,982	22,950	10,155	581,283	657,370	7,346	664,716
Cash and cash equivalent	$ 3,253,948	$ 3,435,377	$ 2,365,048	$ 9,740,447	$ 18,794,820	($ 2,875,345)	$ 13,919,475
	Dec 31, 2024
---	---	---	---	---	---	---	---
	Nylon department	Weaving department	Trade department	Yarn dyeing and other departments	Total	Adjustment and write-off	Total
Cash and cash equivalent	$ 100	$ 142,488	$ 288,863	$ 1,333,905	$ 1,765,356	$ -	$ 1,765,356
Financial assets measured at FVTPL	-	-	9,026	225,489	234,515	-	234,515
Notes and accounts receivable	703,439	343,771	1,811,974	5,550	2,864,734	( 47,808)	2,816,926
Loan to related parties receivable	-	-	-	1,811,687	1,811,687	( 676,673)	1,135,014
Inventory	1,327,389	1,128,525	8,506	34,925	2,499,345	771	2,500,116
Other current assets	123,421	29,377	1,280,232	100,271	1,533,301	( 1,173,363)	359,938
Total current assets	2,154,349	1,644,161	3,398,601	3,511,827	10,708,938	( 1,897,073)	8,811,865
Financial assets measured at FVTPL	-	-	-	6,064	6,064	-	6,064
Financial assets measured at FVTOCI	-	-	-	2,236,655	2,236,655	( 473,686)	1,762,969
Investments using equity method	-	-	-	4,213,296	4,213,296	( 1,555,011)	2,658,285
Property, plant and equipment	2,511,384	1,771,093	20,053	408,195	4,710,725	( 35,668)	4,675,057
Right-of-use asset	-	21,434	-	-	21,434	-	21,434
Other intangible asset	366	2,837	-	1,039	4,242	-	4,242
Other non-current asset	30,069	34,576	1,627	643,619	709,891	7,807	717,698
Total assets	$ 4,696,168	$ 3,474,101	$ 3,420,281	$ 11,020,695	$ 22,611,245	($ 3,953,631)	$ 18,657,614

c. Segment Liabilities

Since the measurement of the liabilities of the consolidated company's department is not provided to the operating decision makers, there is no need to disclose the measurement of the liabilities

d. Main products and service income

The main product and service income analysis of the continuing business unit of the consolidated company is as follows :

	2025	2024
Nylon chips	$ 2,529,796	$ 4,527,832
Petrochemicals	18,994,099	23,827,160
Nylon yarn	1,041,985	1,542,772
Woven (Knitted) fabric	3,812,551	3,482,139
Others	1,480,604	1,445,320
	$ 27,859,035	$ 34,825,223

e. Region-specific information

The consolidated company's main operation is based in Asia.

The information of the consolidated company's continuing business income from external customers based on operating location and non-current assets based on asset location is listed below :

	Income from external customers		Non-current assets
	2025	2024	Dec 31, 2024	Dec 31, 2024
ASIA	$ 20,635,751	$ 30,989,481	$ 4,230,056	$ 4,933,626
AMERICA	3,710,186	3,479,445	-	-
OTHER	3,513,098	356,297	-	-
	$ 27,859,035	$ 34,825,223	$ 4,230,056	$ 4,933,626

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

f. Information of main customers

The details of the customers who accounted for more than 10% of the operating income of the consolidated company's income statement of 2025 and 2024 are as follows:

	2025
TOTAL	$ 8,205,851
CPC Corporation, Taiwan	3,131,023
China American Petrochemical	3,078,158
	$ 14,415,032
	2024
Oriental Petrochemical	$ 5,360,341
TOTAL	5,163,348
Formosa Chemicals & Fibre Corp.	4,715,052
China American Petrochemical	4,137,502
	$ 19,376,243

Li Peng Enterprise Co. Ltd and Subsidiaries

Financings Provided

Jan 1 to Dec 31, 2025

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

No. (Note 1)	Financing Company	Loan and loaner	Financial Statement Account (Note 2)	Related party	Maximum balance for the period (Note 3)	Ending balance (Note 8)	Amount actually drawn	Interest rate %	Nature for financing (Note 4)	Transaction amounts (Note 5)	Reason for short-term financing (Note 6)	Allowance for bad debt	Collateral		Financing Limits for Each Borrowing Company (Note 7)	Financing Company's Total Financing Amount Limits (Note 7)
													Item	Value
0	Li Peng Enterprise Co., Ltd.	PT INDONESIA LIBOLON FIBER SYSTEM	Loan to related parties	Yes	$ 900,000	$ 700,000	$ 646,201	2.53919%~3.10000%	2	$ -	Operating capital	$ -	-	$ -	$ 750,026	$ 3,000,105
		Eton Petrochemical Co., Ltd.	Loan to related parties	Yes	850,000	700,000	455,735	2.53919%~3.10000%	2	-	Operating capital	-	-	-	750,026	3,000,105
		Eton Petrochemical International Co., Ltd.	Loan to related parties	Yes	500,000	500,000	-	2.54505%~3.10000%	2	-	Operating capital	-	-	-	750,026	3,000,105
		Li Ling Film Co., Ltd.	Loan to related parties	Yes	600,000	307,000	217,000	2.32072%~2.54537%	2	-	Operating capital	-	-	-	750,026	3,000,105
		Libolon Energy Co., Ltd.	Loan to related parties	Yes	310,000	60,000	60,000	2.41017%~2.55517%	2	-	Operating capital	-	-	-	750,026	3,000,105
1	Li Mao Investment Co., Ltd.	Li Peng Enterprise Co., Ltd.	η	Yes	80,000	40,000	40,000	1.839189%~1.878440%	2	-	Operating capital	-	-	-	65,986	263,943
		Lealea Enterprise Co., Ltd.	η	Yes	79,000	38,000	-	1.839189%~1.878440%	2	-	Operating capital	-	-	-	65,986	263,943
		Li Ling Film Co., Ltd.	η	Yes	32,000	32,000	32,000	2.41017%~2.54537%	2	-	Operating capital	-	-	-	65,986	263,943
		Libolon Energy Co., Ltd.	η	Yes	60,000	60,000	60,000	2.53919%~2.55517%	2	-	Operating capital	-	-	-	65,986	263,943
2	Li Shing Investment Co., Ltd.	Li Peng Enterprise Co., Ltd.	η	Yes	78,000	50,000	50,000	1.839189%~1.878440%	2	-	Operating capital	-	-	-	70,193	280,772
		Lealea Enterprise Co., Ltd.	η	Yes	74,000	50,000	-	1.839189%~1.878440%	2	-	Operating capital	-	-	-	70,193	280,772
		Li Ling Film Co., Ltd.	η	Yes	75,000	60,000	-	2.26363%~2.54537%	2	-	Operating capital	-	-	-	70,193	280,772
		PT INDONESIA LIBOLON FIBER SYSTEM	η	Yes	70,000	58,000	54,374	2.45361%~3.10000%	2	-	Operating capital	-	-	-	70,193	280,772
		Libolon Energy Co., Ltd.	η	Yes	30,000	30,000	30,000	2.41017%~2.55517%	2	-	Operating capital	-	-	-	70,193	280,772
3	Hung Hsing Investment Co., Ltd.	Li Peng Enterprise Co., Ltd.	η	Yes	60,000	40,000	40,000	1.839189%~1.878440%	2	-	Operating capital	-	-	-	50,722	202,888
		Lealea Enterprise Co., Ltd.	η	Yes	60,000	45,000	-	1.839189%~1.878440%	2	-	Operating capital	-	-	-	50,722	202,888
		Li Ling Film Co., Ltd.	η	Yes	40,000	40,000	40,000	2.41017%~2.54537%	2	-	Operating capital	-	-	-	50,722	202,888
		Libolon Energy Co., Ltd.	η	Yes	20,000	20,000	20,000	2.41017%~2.55517%	2	-	Operating capital	-	-	-	50,722	202,888

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: Loan and limit for individual objects: 10% of the shareholders’ equity of Li Peng Company, Li Mao Company, Li Shing Company and Hung Hsing Company; loan and total amount: Li Peng Company, Li Mao Company, Li Shing Company and 40% of the shareholders’ equity of Hung Hsing Company. Li Peng Company, Li Mao Company, Li Shing Company and Hung Hsing Company did not exceed the limit when the original funds were used for the loan.

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 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.

77 -

Li Peng Enterprise Co. Ltd. and Subsidiaries

Provision of endorsements and guarantees to others

Jan 1 to Dec 31, 2025

Attached Table 2
Unit: 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 as of December 31, 2023 (Note 4)	Outstanding endorsement/guarantee amount at December 31, 2023 (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	Li Peng Enterprise Co., Ltd.	Eton Petrochemical Co., Ltd.	2	$ 1,500,052	$ 1,746,583	$ 1,351,490	$ -	$ -	18.02	$ 3,000,105	Y	N	N
		Eton Petrochemical International Co., Ltd.	2	1,500,052	1,029,355	974,330	129,177	-	12.99	3,000,105	Y	N	N

Note 1: The numbers filled in for the endorsements/guarantees provided by the group or subsidiaries are as follows:
1. The Company is "0".
2. The subsidiaries are numbered in order starting from "1".

Note 2: 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.

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

Note 8: The company provided a joint guarantee for Eton Petrochemical Co., Ltd. and Eton Petrochemical International Co., Ltd. to obtain a bank loan line of USD$26 million. The separate presentation in the above table resulted in double calculation of the closing balance. In essence, it was a joint guarantee for obtaining a single credit line endorsement guaranteed.

Li Peng Enterprise Co. Ltd. and Subsidiaries

Holding securities at the end of the period

For the Year Ended Dec 31, 2025

Attached Table 3
Unit: NTD thousand

Held Company Name	Marketable securities type and name (Note 1)	Relationship with the company (Note 2)	Financial statement account	End of the period
				Shares (Units)	Carrying value (Note 3)	% of ownership	Fair value
Li Peng Enterprise Co. Ltd.	Share
	Trade-Van Information Services Co., Ltd.	None	Financial assets mandatorily measured at FVTPL—current	427,675	$ 40,629	0.29	$ 40,629
	Far EasTone Telecommunications Co., Ltd.	n	n	306,219	27,039	0.01	27,039
	Information Technology Total Services Co. Ltd.	n	n	33,750	1,644	0.12	1,644
	Lealea Enterprise Co., Ltd.	The chairman is same as the company, and the company holds 16.17% of the shares and is the legal director	Financial assets measured at FVTOCI—non-current	78,641,924	473,424	7.90	473,424
	Taiwan Filament Weaving Development Co., Ltd.	None	Financial assets mandatorily measured at FVTPL—non-current	3,302,964	5,527	5.76	5,527
	TECHGAINS PAN-PACIFIC Corp.	n	n	150,000	320	0.26	320
	Book4u Co., Ltd.	n	n	6,250	-	0.12	-
Li Mao Investment Co., Ltd.	Share
	Lealea Enterprise Co., Ltd.	Shareholders who hold 46.62% of the equity	Financial assets measured at FVTOCI—non-current	44,519,618	268,008	4.47	268,008
	Li Peng Enterprise Co. Ltd.	Company's parent company	n	34,177,995	184,561	3.76	184,561
	TS Financial Holding Co., Ltd.	None	Financial assets mandatorily measured at FVTPL—current	672,000	13,709	-	13,709
	Fund beneficiary certificate
	Taishin 1699 Money Market Fund	None	Financial assets mandatorily measured at FVTPL—current	943,344.77	13,555	-	13,555
Fubon Chi-Hsiang Money Market Fund	n	n	2,293,841	38,030	-	38,030

(continued in next page)

(continued from last page)

Held Company Name	Marketable securities type and name (Note 1)	Relationship with the company (Note 2)	Financial statement account	End of the period				Note (Note 4)
				Shares (Units)	Carrying value(Note 3)	% of ownership	Fair value
Hung Hsing Investment Co., Ltd.	Share
	Lealea Enterprise Co., Ltd.	Shareholders who hold 46.98% of the equity	Financial assets measured at FVTOCI—non-current	35,049,016	$ 210,995	3.52	$ 210,995	Pledge 4,315,000 shares as collateral for the issuance of short-term notes
	Li Peng Enterprise Co. Ltd.	Company's parent company	#	24,341,087	131,442	2.67	131,442
	Fund beneficiary certificate
	Taishin 1699 Money Market Fund	None	Financial assets mandatorily measured at FVTPL—current	699,799.86	10,056	-	10,056
	Fubon Money Market Fund	#	#	891,964.05	14,011	-	14,011
Fubon Chi-Hsiang Money Market Fund	#	#	2,112,748.3	35,028	-	35,028
Li Shing Investment Co., Ltd.	Share
	Lealea Enterprise Co., Ltd.	Shareholders who hold 47% of the equity	Financial assets measured at FVTOCI—non-current	40,734,087	245,219	4.09	245,219
	Li Peng Enterprise Co. Ltd.	Company's parent company	#	8,010,024	43,254	0.88	43,254
	TS Financial Holding Co., Ltd.	None	Financial assets mandatorily measured at FVTPL—current	1,344,000	27,418	0.00	27,418
	Fund beneficiary certificate
	Fubon Money Market Fund	None	Financial assets mandatorily measured at FVTPL—current	3,315,172	52,077	-	52,077
Franklin Templeton Money Market Fund	#	#	17,531,869.53	191,956	-	191,956
Libolon (Shanghai) International Trading Co., Ltd	Financial products
	Ching-Hsiang-Tsun-Jung No.1	None	Financial assets mandatorily measured at FVTPL—current	-	19,824	-	19,824

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 7~9".

Li Peng Enterprise Co. Ltd. and Subsidiaries

Total purchases from or sales to Related Parties of at least NT$100 million or 20% of the paid-in capital

Jan 1 to Dec 31, 2025

Attached Table 4
Unit: NTD thousand

Buyer (Seller)	Related Party	Relationship	Transactions				Trading conditions and general trading circumstances and reasons (Note 1)		Notes and accounts receivable (payable)		Note (Note 2)
			Purchase /Sales	Amount	% of total Purchase (Sales)	Credit period	Unit Price	Credit period	Balance	%of total notes and accounts receivable (payable)
Li Peng Enterprise Co., Ltd.	Lealea Enterprise Co., Ltd.	Chairman is same as the company	Purchase	$ 841,609	17	Notes receivable 30 days after shipment	NA	NA	Notes and accounts payable ($ 54,773)	( 6 )	None
n	n	n	Sales	( 347,550 )	( 4 )	n	n	n	Notes and accounts receivable 24,034	2	n
n	Li Ling Film Co., Ltd.	n	Sales	( 222,370 )	( 3 )	Notes receivable 60 days after shipment	n	n	Notes and accounts receivable 29,152	3	n
n	PT INDONESIA LIBOLON FIBER SYSTEM	30% of the company's direct shares are investee	Purchase	107,838	2	T/T 30 days after	n	n	Notes and accounts payable -	-	n
Libolon (Shanghai) International Trading Co.,Ltd	PT INDONESIA LIBOLON FIBER SYSTEM	30% of the company's direct shares are investee	Sales	( 151,855 )	( 49 )	T/T 120 days after	n	n	Notes and accounts receivable 39,945	3	n

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 are 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.

Li Peng Enterprise Co. Ltd. and Subsidiaries
Receivables from related parties amount to NT$100 million or more than 20% of the paid-in capital
For the Year Ended Dec 31, 2025

Attached Table 5
Unit: NTD thousand

Account receivable company	Related Party	Relationship	Ending balance of receivables from related parties (Note 1)	Turnover	Overdue		Recovered amount of the receivables from related parties after the period	Provision for allowance of bad debt
					Amount	Way Processing
Li Peng Enterprise Co., Ltd	Li Ling Film Co., Ltd.	Chairman is same as the company	Loan receivable $ 217,000	NA	$ -	-	$ 217,000	$ -
n	Eton Petrochemical Co., Ltd.	A related party in which the company directly holds 75% of its shares *	Other receivables 538,257	NA	-	-	538,257	-
n	PT INDONESIA LIBOLON FIBER SYSTEM	A related party in which the company directly holds 30% of its shares	Loan receivable 455,735
Loan receivable 646,201	NA	-	-	3,143
400,261	-

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.

82 -

Li Peng Enterprise Co. Ltd. and Subsidiaries
Intercompany relationships and significant intercompany transactions
Jan 1 to Dec 31, 2025

Attached Table 6
Unit: NTD thousand

No. (Note 1)	Company name	Counter party	Relationship (Note 2)	Intercompany transactions
				Financial statements item	Amount	Terms	% of Consolidated Net Revenue or Total Assets (Note 3)
0	Li Peng Enterprise Co., Ltd.	Libolon (Shanghai) International Trading Co., Ltd.	(4)	Accounts receivable	$ 476	no major differences between trading conditions and general customers	-
0	〃	〃	〃	Sales revenue	63,860	〃	-
0	〃	〃	〃	Other receivables	126	〃	-
0	〃	〃	〃	Accounts payables	65	〃	-
0	〃	〃	〃	Purchase	68,463	〃	-
0	〃	〃	〃	Sample expense	85	〃	-
0	〃	〃	〃	Other income	4,224	〃	-
0	〃	Li Shing Investment Co., Ltd.	(1)	Loan from related parties	50,000	〃	-
0	〃	〃	〃	Interest expense	826	〃	-
0	〃	〃	〃	Interest payable	78	〃	-
0	〃	Hung Hsing Investment Co., Ltd.	(1)	Loan from related parties	40,000	〃	-
0	〃	〃	〃	Interest expense	702	〃	-
0	〃	〃	〃	Interest payable	62	〃	-
0	〃	Li Mao Investment Co., Ltd.	(1)	Loan from related parties	40,000	〃	-
0	〃	〃	〃	Interest expense	860	〃	-
0	〃	〃	〃	Interest payable	62	〃	-
0	〃	Eton Petrochemical Co., Ltd.	(1)	Service income	6,880	〃	-
0	〃	〃	〃	Rental income	5	〃	-
0	〃	〃	〃	Accounts receivable	412	〃	-
0	〃	〃	〃	Other receivables	538,257	〃	3
0	〃	〃	〃	Loan to related parties	455,735	〃	3
0	〃	〃	〃	Interest receivable	1,312	〃	-
0	〃	〃	〃	Interest income	16,843	〃	-
0	〃	〃	〃	Temporary receipts	4,138	〃	-

(continued in next page)

(continued from last page)

No. (Note 1)	Company name	Counter party	Relationship (Note 2)	Intercompany transactions
				Financial statements item	Amount	Terms	% of Consolidated Net Revenue or Total Assets (Note 3)
0	Li Peng Enterprise Co., Ltd.	PT. LNDONESIA HWALIN	(1)	Other receivables	122	no major differences between trading conditions and general customers	-
0	n	Eton Petrochemical International Co., Ltd.	(4)	Interest income	3,172	n	-
0	n	n	n	Service income	2,170	n	-
0	n	n	n	Interest receivable	200	n	-
1	Eton Petrochemical Co., Ltd.	Eton Petrochemical International Co., Ltd.	(3)	Purchase	2,610	n	-
2	Libolon (Shanghai) International Trading Co., Ltd.	PT. LNDONESIA HWALIN	(3)	Sales revenue	15,624	n	-
	n	n	n	Accounts receivable	6,426	n	-

Note 1: The business operations information between parent company and subsidiaries shall be indicated in column number, number filled in as follows:
(1) The Parent company is coded "0".
(2) The subsidiaries are numbered sequentially starting from Arabic numeral "1" according to company type.

Note 2: The relationships are categorized into the following three types. Please specify the type. The same transaction between parent and subsidiary or between subsidiaries shall not be disclosed repetitively. For example, for transactions between the Parent company and its subsidiaries, if the parent company discloses the information, the subsidiaries are exempted from doing so. The same applies to transactions between subsidiaries where only one subsidiary needs to disclose the same transaction.

(1) The parent company to subsidiary.
(2) Subsidiary to the parent company.
(3) Subsidiaries to subsidiaries.
(4) Parent to sub-subsidiary.

Note 3: Regarding the percentage of transaction amount to consolidated net revenue or total assets, if it is an asset-liability item, it is computed based on the ending balance to consolidated total assets; if it is a profit and loss item, it is computed based on interim accumulated amount to consolidated total revenue.

Note 4: Whether to describe the important transactions in this table is determined by the company based on the principle of materiality.

Li Peng Enterprise Co. Ltd. and Subsidiaries

Names, Locations, and related Information of investees over which the company exercises significant influence

Jan 1 to Dec 31, 2025

Attached Table 7
Unit: NTD thousand

Investor Company	Related party( Note 1 - 2 )	Location	Main business and products	Original investment amount		Balance at the end of period			Net Income(Losses) of theInvestee( Note 4(2))	Share ofProfits/Lossesof Investee( Note 4(3))
				End of period	End of lastyear	Shares	Percentage ofOwnership	Carryingamount
Li Peng Enterprise Co.,Ltd.	In Talent Investments Limited	Samoa	Reinvestment related business	$ 65,893	$ 65,893	2,000,000	100.00	$ 277,635	$ 5,775	$ 6,453
	Li Mao Investment Co., Ltd.	11th Floor, No.162 Songjiang Road,Taipei City	Reinvestment in various production businesses,securities investment, banks	415,715	415,715	40,356,000	53.38	253,719	6,742	3,599
	Hung Hsing Investment Co., Ltd.	o	o	401,449	401,449	26,296,000	53.02	199,228	1,094	580
	Li Shing Investment Co., Ltd.	o	o	415,280	415,280	42,400,000	53.00	349,103	9,069	4,807
	Li Hao Investment Co., Ltd.	o	o	363,629	363,629	35,244,000	46.62	315,728	4,231	1,972
	Li Zan Investment Co., Ltd.	o	o	329,212	329,212	21,540,000	46.83	155,761	( 5,266 )	( 2,466 )
	Lealea Technology Co., Ltd.	o	Technology software services	40,408	40,408	13,407,953	18.20	224,191	290,541	52,877
	Li Ling Film Co., Ltd.	o	Nylon film production	6,000	6,000	600,000	1.00	624	( 164,249 )	( 1,967 )
	Rich Development Co., Ltd.	8th Floor, No. 99, Jilin Road, Taipei City	Entrusted builders to build commercial buildingsand lease and sell residential buildings	492,829	492,829	52,651,387	6.87	935,749	118,299	8,128
	Fu Li Transport Co., Ltd.	No. 122, Zili Second Street, WuqiDistrict, Taichung City	Automobile container freight industry,warehousing industry, automobile and partsmanufacturing industry	28,000	28,000	2,800,000	20.00	35,734	4,065	813
	Lea Jie Energy Co., Ltd.	4th Floor, No.162 Songjiang Road, TaipeiCity	Coal retail and wholesale	90,000	90,000	9,000,000	30.00	98,618	9,918	3,005
	Libolon Energy Co., Ltd.	No. 38, Gongye Road, Houliao Village,Fangyuan Township, Changhua County	Power Generation	42,448	4,284	4,244,800	40.00	46,680	10,818	4,328
	PT. INDONESIA LIBOLONFIBER SYSTEM	Lantai 1 Jl, Cideng Barat No. 15,RT.011/BW.001 Kef, Dari Palo, Kec,Gambir, DKZ Jakarta	Knitted fabric, fabric improvement	937,995	937,995	6,930,000	30.00	768,893	( 92,052 )	( 31,826 )
	PT. INDONESIA HWALINKNITTING	J1, Raya Ubrng RT 003 RW 001Kembang Kuning Jatiluhur Kab.Purwakarta Jawa Barat	Processing and manufacturing of telescopic nylonknitted fabrics, various man-made fiber fabrics,embryonic fabrics and other import and exporttrade business.	203,427	203,427	7,550,000	82.07	183,725	3,318	5,006
Eton Petrochemical Co.,Ltd.	4th Floor, No.162 Songjiang Road, TaipeiCity	Chemical raw material wholesale	9,000	9,000	5,265,000	75.00	77,309	12,834	9,626
In Talent InvestmentsLimited	Libolon (Shanghai) InternationalTrading Co., Ltd.	Room 532, 5th Floor, No. 88 Taigu Road,Waigaoqiao Free Trade Zone, Shanghai	Weaving, dyeing, finishing, processing,manufacturing, and trading of man-made fibers	65,893	65,893	2,000,000	100.00	279,734	5,776	-
Li Mao Investment Co.,Ltd.	Li Ling Film Co., Ltd.	11th Floor, No.162 Songjiang Road,Taipei City	Nylon film production	297	297	9,900	0.017	10	( 164,249 )	-
Li Shing InvestmentCo., Ltd.	o	o	o	18,000	18,000	600,000	1.000	596	( 164,249 )	-
Hung Hsing InvestmentCo., Ltd.	o	o	o	10,535	10,535	351,150	0.585	349	( 164,249 )	-
Eton PetrochemicalCo.,Ltd.	Eton Petrochemical InternationalCo., Ltd.	Samoa	Chemical raw material wholesale	29	29	1,000	100.00	10,700	4,745	-

Note 1: If a public offering company has a foreign holding company and 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 relevant information to the holding company.
Note 2: If it is not in the situation described in Note 1, fill as in accordance to the following regulations:
(1) The columns of "name of investee company", "location", "main business item", "original investment amount" and "end-of-term shareholding" shall be based on the reinvestment status of the company (public offering) and each direct investment or fill in the reinvestment status of the invested company indirectly controlled in order, and indicate the relationship between each invested company and the (public offering) company (if it is a subsidiary or a granddaughter company) in the remarks column.
(2) In column B of "Invested Company's Current Profit and Loss", the amount of current profit and loss of each invested company should be filled in.
(3) Column B of "Investment Profits and Losses Recognized in the Current Period" only needs to fill in the amount of profit and loss of each subsidiary recognized by the (public offering) company for direct reinvestment and each invested company evaluated by the equity method, and the rest is exempt fill. When filling in the "recognition of the current profit and loss amount of each subsidiary for direct reinvestment", it should be confirmed that the current profit and loss amount of each subsidiary has included the investment profit and loss of its reinvestment that should be recognized in accordance with the regulations.
Note 3: Please refer to Attached Tables 8 and 9 for relevant information of China investee companies.

Li Peng Enterprise Co. Ltd. and Subsidiaries Information on investment in mainland China

Jan 1 to Dec 31, 2025

Attached Table 8
Unit: NTD thousand, original currency in Yuan

Related party in China	Main business	Paid-in capital	Investment method	Beginning of the period Cumulative investment amount remitted from Taiwan	Investment amount remitted or recovered in the current period		End of the period Remit from Taiwan accumulated investment amount	Invested company's current profit and loss	The company's direct or indirect investment % of shares held	Recognized in this period Investment profits and losses (Note 3(2)B)	Investment carrying amount at end of period	Investment income remitted back to Taiwan as of the current period
					Outward	Inward
Libolon (Shanghai) International Trading Co., Ltd.	Weaving, dyeing, finishing, processing, manufacturing, and trading of man-made fibers	$ 65,893 (USD 2,000,000)	Note 2(2)	$ 65,893 (USD 2,000,000)	$ -	$ -	$ 65,893 (USD 2,000,000)	$ 5,776	100	$ 5,776	$ 279,734	$ 80,095
Accumulated Outward Remittance for Investment in Mainland China as of Dec 31, 2025	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on the Amount of Investment Stipulated by Investment Commission, MOEA
---	---	---
USD 2,000,000	USD 2,000,000	$ 4,500,157
NTD 65,893	NTD 65,893

Note 1: 2025 annual average exchange rate RMB to NTD=1 : 4.333
Note 2: The investment methods are divided into the following three types, just indicate the types:
(1) Go directly to the mainland for investment.
(2) Reinvest in mainland China through a third-region company (please specify the investment company in the third region).
(3) Other methods.

Note 3: In the current period recognized investment profit and loss column:
(1) If it is under preparation and there is no investment gain or loss, it should be indicated.
(2) The investment profit and loss recognition basis are divided into the following three types, which should be specified.
A. The financial statements that have been verified by international accounting firms in partnership with the Republic of China Accounting Firm.
B. The financial statements of the visa are checked by the Taiwanese parent company's visa accountant.
C. Others.

Note 4: The relevant figures in this table should be presented in New Taiwan Dollars.

Li Peng Enterprise Co. Ltd. and Subsidiaries

The following major transactions with mainland investee companies directly or indirectly via a third region, their prices, payment terms, unrealized profits and losses, and other relevant information

Jan 1 to Dec 31, 2025

Attached Table 9

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

Related Party in mainland China	Transaction	Purchase, sales ( Note )		Price	Terms		Notes, accounts receivable (payable)		Unrealized profit (loss)	Note
		Amount	%		Payment terms	Compare to normal trade	Amount	%
Libolon (Shanghai) International Trading Co., Ltd.	Sales	($ 63,860)	( 1 )	Set according to local market conditions, trading conditions are similar to general customers	120 days after shipment, the collection period will be extended depending on local conditions	Similar	Accounts Receivable $ 476	-	$ -	-
n	Purchase	68,463	1	n	90% T/T before shipment	n	Accounts Payable 65	-	1,410	-

Note: In the case of property transactions or other types of transactions, the terms should be modified according to the circumstances.

AI assistant

LP — Audit Report / Information 2025

51810_rns_2026-05-19_684e1916-fdaa-47d0-97bd-4aff320d35c8.pdf

Li Peng Enterprise Corporation Limited and Subsidiaries

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

§TABLE OF CONTENTS§

REPRESENTATION LETTER

Opinion

Basis for Opinion

Key Audit Matters

Occurrence of sales revenue from specific customers of fabric products

Other Matter

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

Auditor's Responsibilities for the Audit of the Consolidated Financial Statements

LI PENG ENTERPRISE CORPORATION LIMITED AMD SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

LI PENG ENTERPRISE CORPORATION LIMITED AMD SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

LI PENG ENTERPRISE CORPORATION LIMITED AMD SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGE IN EQUITY

LI PENG ENTERPRISE CORPORATION LIMITED AMD SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

Company History

The Authorization of Financial Statements

Application of New and Revised International Financial Reporting Standards

Summary of Significant Accounting Policies

(一) Statement of Compliance

(二) Basis of Preparation

(三) Classification of Current and Noncurrent Assets and Liabilities

(四) Basis of Consolidation

(五) Business Combination

(六) Foreign Currencies

(±)Inventories

(△)Investment in Associates

(ニ十) Treasury Stock

(ニ一) Income Tax

Current Income Tax

Deferred Income Tax

Current and Deferred Income Tax

$\pmb{\mathfrak{E}}$ Critical Accounting Judgments and Key Sources of Estimation and Uncertainty

6. Cash and Cash Equivalents

7. Financial Instruments Measured at Fair Value through Profit and Loss

9. Inventories

10. Other financial assets - current

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

12. Subsidiaries

13. Investments Using Equity Method

Accumulated amortization and impairment

Accumulated amortization and impairment

18. Borrowing

21. Equity

After Amendment of the Articles of Incorporation

Before Amendment of the Articles of Incorporation

24. Continuing operating business unit's income tax

26. Dispose of a subsidiary

a. Analysis of assets and liabilities upon loss of control

27. Capital risk management

28. Financial instruments

(2) Credit risk

(3) Liquidity risk

(2) Liquidity for derivative financial liabilities

(3) Financing Facilities.

29. Trading with Related Parties

30. Pledged assets

31. Significant contingent liabilities and unrecognized commitments

32. Significantly influencing foreign currency financial assets and liabilities information

33. Disclosed items in notes

b. Segment assets

c. Segment Liabilities

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LP Audit Report / Information 2025