Li Peng Enterprise Corporation Limited

Parent Company Only 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.	Independent Auditor’s Report	3～6	-
IV.	Parent company only Balance Sheet	7	-
V.	Parent company only Statements of Comprehensive Income	8～9	-
VI.	Parent company only Statements of Changes in Equity	10	-
VII.	Parent company only Statements of Cash Flows	11～12	-
VIII.	Notes to Parent company only Financial Statements
	1. Company History	13	1
	2. The Authorization of Financial Statements	13	2
	3. Application of New and Revised International Financial Reporting Standards	13～15	3
	4. Summary of Significant Accounting Policies	15～30	4
	5. Critical Accounting Judgments and Key Sources of Estimation, and Uncertainty	30	5
	6. Major Accounting Item Descriptions	30～60	6～27
	7. Trading with Related Parties	60～66	28
	8. Pledged Assets	67	29
	9. Significant Contingent Liabilities and Unrecognized Commitments	67	30
	10. Loss from Major Disasters	-	-
	11. Major Events After Reporting Period	-	-
	12. Others	67～69	31
	13. Other Disclosure
	a. Related information on major transactions	69	32
	b. Related information on reinvestment	69	32
	c. Related information on investments in China	69	32
	14. Segment Information	70	33
IX.	List of Major Accounting Items	79～105	-

Independent Auditors' Report

To Li Peng Enterprise Corporation Limited

Opinion

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

In our opinion, based on our audits and the report of other auditors (please refer to the Other Matter paragraph), the accompanying financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and its financial performance and cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

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

Key Audit Matters

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

Key audit matters for the Company’s parent only 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. 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 parent company only 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 parent 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 6.32% and 5.44% 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 (0.3%) and (6.96%) of the comprehensive profit and loss of the respective years.

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

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

In preparing the parent company only financial statements, management is responsible for

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

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

Auditor's Responsibilities for the Audit of the Parent company only Financial Statements

The objectives of our audit of the parent-company-only financial statements are to obtain reasonable assurance about whether the parent-company-only financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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 parent-company-only financial statements

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

Identify and assess the risks of material misstatement of the parent company only 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 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 auditors' report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the parent company only
5 -

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

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

PARENT COMPANY ONLY BALANCE SHEETS

For The Years Ended December 31, 2025 and 2024

(In Thousands of New Taiwan Dollars)

Code	Assets	December 31, 2024		December 31, 2023
		Amount	%	Amount	%
Current Assets
1100	Cash and cash equivalents (Note 4 and 6)	$ 964,333	7	$ 1,324,660	8
1110	Financial assets at fair value through profit or loss - current (Note 4 and 7)	69,629	1	67,926	1
1150	Notes receivable, net (Note 4 and 8)	30,483	-	35,006	-
1160	Notes receivable from related parties, net (Note 4 and 28)	15,202	-	27,468	-
1170	Accounts receivable, net (Note 4 and 8)	467,447	3	878,977	5
1180	Accounts receivable from related parties, net (Note 4 and 28)	39,688	-	93,016	1
1210	Loan to related parties (Note 28)	1,378,936	9	1,249,952	7
1220	Income tax assets (Note 4 and 23)	13,390	-	16,632	-
130X	Inventory (Note 4 and 9)	2,085,846	14	2,468,398	14
1410	Prepayments	56,186	-	132,237	1
1476	Other financial assets - current (Note 4 - 10 and 28)	576,756	4	1,095,871	6
1479	Other current assets	5,446	-	10,261	-
11XX	Total current assets	5,703,342	38	7,400,404	43
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)	473,424	3	670,506	4
1550	Investment adjustments for Using Equity Method (Note 4 and 12)	3,922,697	27	4,205,197	24
1600	Property, plant, equipment (Note 4 and 13)	4,035,200	27	4,594,185	26
1755	Right of use asset (Note 4 and 14)	4,117	-	-	-
1760	Investment property, net (Note 4 and 15)	40,532	-	-	-
1780	Other intangible assets (Note 4 and 16)	6,134	-	3,852	-
1840	Deferred tax assets (Note 4 and 23)	561,200	4	450,317	3
1915	Prepayment for equipment	61,381	1	60,024	-
1990	Other non-current assets	347	-	270	-
15XX	Total non-current assets	9,110,879	62	9,990,415	57
1XXX	Total Assets	$ 14,814,221	100	$ 17,390,819	100
Code Liability and Equity
Current liability
2100	Short-term loan (Note 4 and 17)	$ 3,330,000	23	$ 3,560,000	20
2110	Short-term corporate bonds payable (Note 4 and 17)	-	-	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 28)	2,420	-	3,094	-
2170	Accounts payable	348,954	2	739,831	4
2180	Accounts payable - related parties (Note 28)	56,668	-	104,294	1
2219	Other payable (Note 18 and 28)	1,027,522	7	1,509,463	9
2220	Loan from related parties (Note 28)	222,000	2	298,000	2
2250	Current provisions	7,715	-	501	-
2280	Lease liability - current (Note 4 and 14)	175	-	-	-
2320	Long-term loan due in a year (Note 4 and 17)	146,000	1	-	-
2399	Other current liability	188,733	1	148,608	1
21XX	Total current liabilities	5,367,152	36	6,482,767	37
Non-current liability
2540	Long-term loan (Note 4 and 17)	1,619,000	11	1,690,000	10
2570	Deferred income tax liability (Note 4 and 23)	150,549	1	153,028	1
2580	Lease liability - non-current (Note 4 and 14)	3,924	-	-	-
2640	Accrued pension liability, net - non-current (Note 4 and 19)	172,961	1	181,446	1
2670	Other non-current liability	373	-	720	-
25XX	Total non-current liabilities	1,946,807	13	2,025,194	12
2XXX	Total liability	7,313,959	49	8,507,961	49
Equity (Note 19)
3110	Common stock	9,100,712	61	9,100,712	52
3200	Capital reserve	219,160	2	214,187	1
Retained earning
3310	Legal reserve	525,527	3	525,527	3
3320	Special reserve	229,670	2	229,670	2
3350	Accrued loss	( 1,328,109 )	( 9 )	( 471,268 )	( 3 )
3300	Total retained earnings	( 572,912 )	( 4 )	283,929	2
3400	Other equity	( 959,556 )	( 6 )	( 428,828 )	( 2 )
3500	Treasury stock	( 287,142 )	( 2 )	( 287,142 )	( 2 )
3XXX	Total equity	7,500,262	51	8,882,858	51
Total of Liability and Equity		$ 14,814,221	100	$ 17,390,819	100

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

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

For The Years Ended December 31, 2025 and 2024

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

Code		2025		2024
		Amount	%	Amount	%
4000	Operating revenue (Note 4,21,28)	$ 8,374,675	100	$ 10,669,091	100
5000	Operating cost (Note 9, 28)	8,408,689	101	10,553,122	99
5900	Operating profit (loss)	( 34,014)	( 1)	115,969	1
5910	Unrealized loss (profit) on sales to associates	( 1,080)	-	2,376	-
5920	Realized profit on sales to associates	( 2,376)	-	1,116	-
5950	Realized operating profit (loss)	( 37,470)	( 1)	119,461	1
	Operating expense (Note 8,28)
6100	Sales expense	236,671	3	321,279	3
6200	Management expense	174,593	2	198,278	2
6300	R&D expense	122,897	1	122,049	1
6450	Expected credit gain on reversal of impairment loss	( 2,388)	-	1,131	-
6000	Total operating expenses	531,773	6	642,737	6
6900	Operating net loss	( 569,243)	( 7)	( 523,276)	( 5)
	Non-operating income and expenses (Note 22, 28)
7100	Interest income	70,705	1	99,567	1
7010	Other income	43,842	1	44,117	-
7020	Other profit and loss	( 467,056)	( 6)	387,724	4
7050	Finance cost	( 104,009)	( 1)	( 101,529)	( 1)
7070	Share of profits of subsidiaries and associates	64,935	1	125,817	1
7000	Total non-operating income and loss	( 391,583)	( 4)	555,696	5

(Continued)

Code		2025		2024
		Amount	%	Amount	%
7900	Net income (loss) before tax	($ 960,826)	( 11)	$ 32,420	-
7950	Income tax profit (Note 4, 23)	111,237	1	7,519	-
8200	Net loss of the year	( 849,589)	( 10)	39,939	-
	Other comprehensive income (net)
8310	Uncategorized items profit and loss :
8311	Measure on defined benefit plans	652	-	12,151	-
8316	Unrealized gain (loss) on investments in equity instruments at fair value through other comprehensive income	( 217,976)	( 3)	( 112,124)	( 1)
8330	Share of other comprehensive gain of associates and joint ventures	( 274,526)	( 3)	( 137,086)	( 1)
8360	Items that may be reclassified subsequently to profit or loss :
8361	Exchange differences resulting from translation on foreign operations	( 46,130)	( 1)	20,915	-
8300	Total other comprehensive income of the year	( 537,980)	( 7)	( 216,144)	( 2)
8500	Total comprehensive income of the year	($ 1,387,569)	( 17)	($ 176,205)	( 2)
	Earnings (loss) Per Share (Note 24)
9710	Basic	($ 0.97)		$ 0.04
9810	Diluted	($ 0.97)		$ 0.04

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

PARENT COMPANY ONLY STATEMENTS OF CHANGE IN EQUITY

For The Years Ended December 31, 2025 and 2024

(In Thousands of New Taiwan Dollars)

	Retained Earning					Other Equity Items
		Capital Stock-Common Stock		Capital Surplus	Legal Reserve	Special Reserve	Unappropriated Earnings (Unappropriated deficit)	Foreign Organization Financial report Exchange difference	Financial assets unrealized profit and loss at fair value through other comprehensive income			Treasury Stock	Total
Code	BALANCE JANUARY 1, 2024	Shares (In Thousands)	Amount						Parent Company	Subsidiary using Equity Method	Associates using Equity Method
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
C7	Adjustments to other capital surplus: Adjustments to share of changes in equities of associates	-	-	22,364	-	-	-	-	-	-	( 8 )	-	22,356
L7	Disposal of parent company shares by a subsidiary is deemed to be a treasury stock transaction	-	-	622	-	-	-	-	-	-	-	2,150	2,772
Q1	Associates' disposal of equity tool through other comprehensive income	-	-	-	-	-	( 7,744 )	-	-	-	7,744	-	-
D1	Net loss in 2024	-	-	-	-	-	39,939	-	-	-	-	-	39,939
D3	Other comprehensive income (loss) in 2024, net of income tax	-	-	-	-	-	10,850	20,915	( 112,124 )	( 96,593 )	( 39,192 )	-	( 216,144 )
D5	Total comprehensive income (loss) in 2024	-	-	-	-	-	50,789	20,915	( 112,124 )	( 96,593 )	( 39,192 )	-	( 176,205 )
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
C7	Adjustments to other capital surplus: Adjustments to share of changes in equities of associates	-	-	4,973	-	-	-	-	-	-	-	-	4,973
Q1	Associates' disposal of equity tool through other comprehensive income	-	-	-	-	-	( 11,416 )	-	-	6,445	4,971	-	-
D1	Net income in 2025	-	-	-	-	-	( 849,589 )	-	-	-	-	-	( 849,589 )
D3	Other comprehensive income (loss) in 2025, net of income tax	-	-	-	-	-	4,164	( 46,130 )	( 217,976 )	( 185,456 )	( 92,582 )	-	( 537,980 )
D5	Total comprehensive income (loss) in 2025	-	-	-	-	-	( 845,425 )	( 46,130 )	( 217,976 )	( 185,456 )	( 92,582 )	-	( 1,387,569 )
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

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

PARENT COMPANY ONLY 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	Income (loss) before income tax	($ 960,826)	$ 32,420
A20010	Adjustments to reconcile profit (loss)
A20100	Depreciation expense	546,222	580,732
A20200	Amortization expense	3,326	2,858
A29900	Amortized prepayment	66,003	62,896
A20300	Expected credit impairment loss
(reversal of impairment gain)	( 2,388)	1,131
A20400	Financial assets and liability at fair value through profit	( 1,697)	( 56,351)
A20900	Finance costs	104,009	101,529
A21200	Interest income	( 70,705)	( 99,567)
A21300	Dividend income	( 3,961)	( 2,246)
A22400	Share of income to associates using equity method	( 64,935)	( 125,817)
A22500	Loss (Gain) on disposal or retirement of property, plant, equipment	( 5,045)	( 4,471)
A23100	Gain on disposal of investment, net	-	( 187)
A23700	Impairment loss on property, plant and equipment	314,778	-
A23800	Impairment loss on inventory	27,634	113,184
A23900	Unrealized Sales (Losses) Gains Among Affiliates	1,080	( 2,376)
A24000	Realized loss (profit) on sales to subsidiaries and associates	2,376	( 1,116)
A24100	Loss on foreign exchange, net	7,050	( 97,509)
A30000	Changes in operating assets and liabilities
A31115	Financial assets mandatorily measured at fair value through profit or loss	217	187
A31130	Notes receivable	4,569	15,590
A31140	Notes receivable – related parties	12,266	69,472
A31150	Accounts receivable	406,797	( 214,726)
A31160	Accounts receivable – related parties	53,328	90,291
A31200	Inventory	354,918	( 388,234)
A31230	Prepayments	10,003	( 132,973)
A31240	Other current assets	4,811	( 7,133)
A31250	Other financial assets	507,798	487,740
A32130	Notes payable	17,983	( 12,065)
A32140	Notes payable-related parties	( 674)	( 83,224)
A32150	Accounts payable	( 386,304)	305,532
A32160	Accounts payable-related parties	( 47,626)	39,176
A32180	Other payable	( 493,623)	( 473,393)
A32200	Current provisions	7,214	( 561)

(Continued)

Code		2025	2024
A32240	Accrued pension liabilities	($ 7,833)	($ 9,738)
A32230	Other current liability	46,446	26,917
A33000	Cash inflow generated from operations	453,211	217,968
A33100	Interest income	73,533	98,877
A33200	Dividend income	3,961	2,246
A33200	Dividend income from associates	66,460	36,595
A33300	Interest payable	( 104,300)	( 100,677)
A33500	Income tax received (payable)	1,120	( 7,716)
AAAA	Cash inflow from operating activities	493,985	247,293
	Cash Flows from Investing Activities
B00010	Acquisition of financial assets at fair value through other comprehensive income	( 20,894)	( 2,164)
B01800	Acquisition of investments accounted for using equity method	( 38,164)	-
B02700	Acquisition of property, plant, equipment	( 325,999)	( 249,283)
B02800	Disposal of property, plant, equipment	7,385	5,035
B03800	Increase in refundable deposits	( 77)	( 1)
B04500	Acquisition of intangible asset	( 5,608)	( 2,542)
B04300	Increase in loan to related parties receivables	( 131,121)	( 269,791)
BBBB	Cash outflow from investment activity	( 514,478)	( 518,746)
	Cash Flows from Financing Activities
C00100	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	Repay long-term loan	( 3,310,000)	( 3,780,250)
C04020	Lease principal repayment	( 144)	( 198)
C03000	Increase (Decrease) in refundable deposits	5	( 966)
C03700	Increase (Decrease) in payables to related parties	( 76,000)	19,000
CCCC	Cash outflows from financing activities	( 331,139)	( 245,414)
DDDD	Effect of exchange rate on cash or cash equivalents	( 8,695)	45,450
EEEE	Net decrease in Cash and Cash Equivalents	( 360,327)	( 471,417)
E00100	Balance of cash and cash equivalents, beginning of the year	1,324,660	1,796,077
E00200	Balance of cash and cash equivalents, end of the year	$ 964,333	$ 1,324,660

The accompanying notes are an integral part of the parent company only 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
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

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 parent company only financial statement are both New Taiwanese Dollar.

The Authorization of Financial Statements

The parent company only financial statement were approved and authorized for issue by the Board of Directors on March 16, 2026.

Application of New and Revised International Financial Reporting Standards

(-) 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.

(±) 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

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As of the date of approval of this Parent-company-only financial report, the 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 individual financial report, the Company is still evaluating the other impacts of the amendments to various standards and interpretations on the financial position and financial performance, and the relevant impacts will be disclosed when the evaluation is completed.

Summary of Significant Accounting Policies

(一) Statement of Compliance

This individual financial report is prepared in accordance with the Financial Reporting Standards for Securities Issuers.

(二) Basis of Preparation

The accompanying parent company only financial statements have been prepared on the historical cost basis except for financial instruments that are measured at fair values and for the net defined benefit liabilities recognized at fair value of the planned assets at the present value of the defined benefit liabilities, as explained in the accounting policies below.

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.

When preparing individual financial reports, the Company adopts the equity method for investment in subsidiaries and associated companies. In order to make the profit or loss,

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other comprehensive income and equity of the current period in this individual financial report the same as the profit or loss, other comprehensive income and equity of the current year attributable to the owners of the Company in the Company's consolidated financial statements, certain accounting treatment differences between the individual basis and the consolidated basis are adjusted for "investments using the equity method", "share of profit or loss of subsidiaries and associated companies using the equity method", "share of other comprehensive income of subsidiaries and associated companies using the equity method" and related equity items.

(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.

Assets that do not fall into the above-mentioned current assets or current liabilities are classified as non-current assets or non-current liabilities.

(四) Foreign Currencies

When the Company prepares individual financial reports, transactions in currencies other than the Company's functional currency (foreign currency) are converted into the functional currency based on the exchange rate on the transaction date.

Foreign currency monetary items are translated at the closing exchange rate on each balance sheet date. Exchange differences arising from the settlement or translation of monetary items are recognized in profit or loss in the period in which they occur.

Amount receivable or payable with relation to the company's foreign operations' currency, the liquidation of the item is currently neither planned nor possible in the foreseeable future (so it constitutes a part of the net investment in the foreign operations), the exchange difference is originally recognized as other comprehensive

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gains and losses, and when disposing net investment, reclassify from equity to profit and loss.

Foreign currency non-monetary items measured at fair value are translated using the exchange rates prevailing on the date the fair value was determined. Exchange differences arising from such translations are included in current period profit or loss. For items whose fair value changes are recognized in other comprehensive income, the resulting translation differences are included in other comprehensive income.

Non-monetary items that are measured in terms of historical cost in foreign currencies use exchange rates prevailing on trading day, not retranslated.

(五) 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.

(六) Investment Accounted for Using Equity Method

Investment accounted for using equity method are investments in subsidiaries and associates.

a. Investment in subsidiary

A subsidiary refers to an entity that the company has control over.

Under the equity method, the investment is initially recognized at cost, and the book amount obtained in the future will increase or decrease with the Company's share of subsidiary's profits and losses and other comprehensive profits and losses and profit distribution. In addition, a change in the Company's other rights and interests of subsidiaries are recognized based on the shareholding ratio.

When the Company's changes in the ownership and equity of the subsidiary do not result in the loss of control, it is treated as an equity transaction. The difference between the book value of the investment and the fair value of the consideration paid or received is directly recognized as equity.

When the Company's share of losses in a subsidiary equals or exceeds its equity in the subsidiary (including the book value of the subsidiary under the equity method and other long-term equity that is essentially part of the Company's net investment in the subsidiary), it is continued to recognize losses based on shareholding ratio.

The amount of the acquisition cost exceeding the Company's share of the net fair value of the identifiable assets and liabilities of the subsidiaries that constitute the business on the acquisition date is classified as goodwill, which is included in the carrying amount of the investment and cannot be amortized; the amount by which

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the net fair value of the identifiable assets and liabilities of the subsidiary's identifiable assets and liabilities that constitute the business on the day exceeds the cost of acquisition is recorded as current income.

When the Company assesses impairment, it considers the cash-generating unit as a whole in the financial report and compares its recoverable amount with the book value. If the recoverable amount of the asset increases subsequently, the reversal of the impairment loss shall be recognized as an interest, but the book value of the asset after the reversal of the impairment loss shall not exceed the asset that should be deducted if the impairment loss is not recognized as the carrying amount after amortization. The impairment loss attributable to goodwill shall not be reversed in subsequent periods.

When it loses control of a subsidiary, the Company measures its remaining investment in the former subsidiary at the fair value on the date of loss of control. The fair value of the remaining investment and the difference between any disposal price and the book value of the investment on the date of loss of control are included in current profit and loss. In addition, all amounts recognized in other comprehensive profits and losses related to the subsidiary are accounted for on the same basis as the Company's direct disposal of related assets or liabilities.

The unrealized gains and losses of downstream transactions between the Company and its subsidiaries shall be eliminated in the parent company only financial report. The gains and losses arising from the counter-current and side-current transactions between the Company and its subsidiaries are only recognized in parent company only financial reports within the scope that has nothing to do with the Company's equity in the subsidiaries.

b. Investment in associate

Affiliates refer to companies that the Company has significant influence over, but are not subsidiaries.

The Company invested in its associates using equity method.

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

Any excess of the cost of acquisition over the Company's share of the net fair value of the identifiable assets 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

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When the associated company issues new shares, if the company fails to subscribe according to the shareholding ratio, which causes the shareholding ratio to 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 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 company's net investment in the associated company), that is, stop recognizing further losses. The 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 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 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 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 company and the associated company are recognized in the parent company only financial report only to the extent that the company has no relation to the equity of the associated company.

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(±) 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.

Property, plant, and equipment are depreciated over their useful lives on a straight-line basis, with each significant component depreciated separately. The Company reviews the estimated useful lives, residual values, and depreciation methods at least at the end of each fiscal year, and accounts for any changes as a change in accounting estimate 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.

(∧) 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.

(九) 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 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 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 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 balance sheet when the 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 company are financial assets measured at fair value through profit and loss, financial assets measured at amortized cost,

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and equity instrument investment measured at fair value through other comprehensive gains and losses.

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 27 for the method of determining fair value.

B. Financial Assets at Amortized Cost

If the financial assets invested by the 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 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 company were established unless the dividends clearly represent partial investment cost recovery.

(2) Impairment Loss of Financial Assets and Contractual Assets

The 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.

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

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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 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 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.

Financial Liabilities

(1) Subsequent Measurement

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

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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 27 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 company include forward foreign exchange contracts, interest rate exchanges and currency exchanges, which are used to manage the 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.

(+ -) 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.

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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.

(十二) Income Recognition

After the 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 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.

(十三) Lease

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

The 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 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 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

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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.

2. The Company as Lessee

Except for lease payments for low-value underlying asset leases and short-term leases that are subject to the applicable recognition exemption, the lease payments are recognized as expenses on a straight-line basis during the lease period, and other leases are recognized as the right-of-use asset and lease liability 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 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 liability is measured on the amortized cost basis using the effective interest method, and the interest expense is amortized during the lease period. If changes in the lease payment period or the index or rate used to determine lease payments result in changes in future lease payments, the company will re-measure the lease liability and adjust the right-of-use assets accordingly. However, if the book value of the right-of-use asset has been reduced to zero, then the remaining remeasured amount is recognized in profit and loss. For lease modifications that are not treated as separate leases, remeasurement of the lease liability due to the reduction in the scope of the lease is to reduce the right-of-use asset, and to recognize the profit and loss of the partial or full termination of the lease; the re-measurement of the lease liability due to other modifications is to adjust the right-of-use asset. Lease liabilities are separately expressed on parent company only balance sheets.

(+ ∞) 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.

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

(十五) Government Subsidies

Government subsidies are recognized only when it is reasonably certain that the 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 company and has no future related costs, it shall be recognized in the profit and loss during the period when it can be received.

(十六) 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 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.

(十七) Treasury Stock

When the Company buys back the company's stock, it is reported at the cost of the buy-in. When disposing, the price difference generated by the treasury stock exchange is listed under the shareholder's equity. The Company's subsidiaries hold the company's

28 -

stocks, and they are treated as treasury stocks in accordance with the provisions of the International Financial Reporting Standards Bulletin No. 2 “Share Basic Benefits”.

The Company’s repurchase of the company’s stock is the Company’s repossession or purchase of its own shares within the governance of law. Before disposition or cancellation, the recovery or purchase cost is listed as a deduction of shareholders’ equity.

If the price of the treasury stock is higher than the book value, the difference is listed as capital reserve-treasury stock transaction; if the price of the treasury stock is lower than the book value, the difference will first offset the capital reserve generated by the transaction of the same type of treasury stock, such as if there is a deficiency, the retained surplus is debited.

(+ ∧) Income Tax

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

Current Income Tax

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 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 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

29 -

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 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.

五、Critical Accounting Judgments and Key Sources of Estimation and Uncertainty

When the 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.

The management will continue to review the estimations and basic assumptions. If the revision of the estimation only affects the current period, it shall be recognized in the current period of the revision. If the revision of accounting estimations affects both the current period and the future period, it shall be recognized in the current and the future periods of the revision.

六、Cash and Cash Equivalents

	Dec 31, 2025	Dec 31, 2024
Cash on hand	$ 519	$ 525
Bank cheques and current saving	552,081	455,333
Cash equivalent
Short-term bills	-	377,027
Bank foreign currency time deposits with maturity in 3 months	411,733	491,775
	$ 964,333	$ 1,324,660

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 29)

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

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	69,312	65,461
	$ 69,629	$ 67,926
Financial assets 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	320
	$ 5,847	$ 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/NTD 187,998	31.3290~31.3350

Dec 31, 2024

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

The purpose of the 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 financial assets measured by the fair value of the profits and losses were measured at a net profit of NT$1,697 thousand and a net profit of NT$56,351 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	$ 471,177	$ 885,049
Less: allowance for impairment loss	(3,730)	(6,072)
	$ 467,447	$ 878,977

Accounts Receivable

In principle, the credit period of the 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 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 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 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 Company believes that the credit risk of the company has been significantly reduced.

The company measures the accounts and notes receivable (not including related parties), the allowance for impairment loss is as follows (the 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	$ 463,829	$ 33,424	$ 2,417	$ 2,298	$ 501,968
Allowance for impairment loss (lifetime expected credit loss)	(3,736)	(265)	(19)	(18)	(4,038)
Cost after amortization	$ 460,093	$ 33,159	$ 2,398	$ 2,280	$ 497,930

32 -

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	$ 808,215	$ 72,289	$ 35,560	$ 4,345	$ 920,409
Allowance for impairment loss (lifetime expected credit loss)	( 5,656 )	( 496 )	( 244 )	( 30 )	( 6,426 )
Cost after amortization	$ 802,559	$ 71,793	$ 35,316	$ 4,315	$ 913,983

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

	2025	2024
Opening balance	$ 6,426	$ 5,295
Add : The current period (reversal) is listed as impairment loss	( 2,388 )	1,131
Closing balance	$ 4,038	$ 6,426

9. Inventories

	Dec 31, 2025	Dec 31, 2024
Raw materials	$ 448,331	$ 493,694
Materials	67,862	59,937
Raw materials in transit	15,649	87,363
Processed goods	658,145	753,069
Finished goods	768,356	865,529
Inventory in transit	127,503	208,806
	$ 2,085,846	$ 2,468,398

The inventory-related cost of goods sold in 2025 and 2024 were NT$ 8,048,689 thousand and NT$ 10,553,122 thousand, respectively.

Operating costs for 2025 and 2024 included impairment loss on inventory NT$ 27,634 thousand and NT$ 113,184 thousand, respectively.

10. Other financial assets - current

	Dec 31, 2025	Dec 31, 2024
Other Receivables	$ 25,891	$ 64,405
Other Receivables – related parties (Note 28)	548,865	1,029,466
Pledged deposit receipt (Note 6 and 29)	2,000	2,000
	$ 576,756	$ 1,095,871

34 -
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	$ 473,424	$ 670,506

The 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.

Investments Using Equity Method

	Dec 31, 2025	Dec 31, 2024
Invested subsidiaries	$ 1,340,719	$ 1,548,533
Invested associates	2,581,978	2,656,664
	$ 3,922,697	$ 4,205,197

a. Invested Subsidiaries

	Dec 31, 2025	Dec 31, 2024
Non-public listed (OTC) company
In Talent Investments Limited	$ 277,635	$ 290,623
Li Mao Investment Co., Ltd	253,719	321,474
Hung Hsing Investment Co., Ltd.	199,228	250,962
Li Shing Investment Co., Ltd.	349,103	404,820
Libolon Energy Co., Ltd	- (註)	4,117
Eton Petrochemical Co., Ltd.	77,309	81,350
PT. INDONESIA HWALIN	183,725	195,187
	$ 1,340,719	$ 1,548,533
Company name	% of equity and voting rights held
---	---	---
	Dec 31, 2025	Dec 31, 2024
In Talent Investments Limited	100.00%	100.00%
Li Mao Investment Co., Ltd.	53.38%	53.38%
Hung Hsing Investment Co., Ltd.	53.02%	53.02%
Li Shing Investment Co., Ltd	53.00%	53.00%
Libolon Energy Co., Ltd.	(Note)	70.00%
Eton Petrochemical Co., Ltd.	75.00%	75.00%
PT. INDONESIA HWALIN	82.07%	82.07%

(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 25 and 28 for further details.

b. Invested Associates

	Dec 31, 2025	Dec 31, 2024
Individual insignificant
Associate companies	$2,581,978	$2,656,664

For information on the businesses, main location of operation and country of registration of the above-mentioned associates, please refer to the attached Table "Names, Locations, and related Information of investees over which the company exercises significant influence" in attached Table 6.

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 Company adopts equity measurement for all the above-listed associates.

Summarized Information on Each Insignificant Associates :

	2025	2024
Company's share
Continuing business unit's net profit for the year	$ 34,863	$ 39,334
Other comprehensive income	( 117,371)	( 25,421)
Total comprehensive income	($ 82,508)	$ 13,913

The Company's investment using the equity method and its share of profit and loss and other comprehensive profit and loss, the financial statements of Rich Development Co., Ltd. is not audited by the company's Certified Public Accountant, but by another Certified Public Accountant.

13. 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	1,015,281	1,363,156
Machinery equipment	993,710	1,102,102
Transportation	10,006	6,767
Office equipment	4,125	3,138
Other equipment	202,845	251,818
Unfinished Construction	320	15,416
	$ 4,035,200	$ 4,594,185
	Owned Land	Land Improvement
---	---	---
Jan 1, 2025 balance	$ 1,847,871	$ 16,019
Additives	-	-
Disposals	-	-
Account transfer	-	-
Transfers to Investment Property	(40,532)	-
Dec 31, 2025 balance	$ 1,807,339	$ 16,019
Accumulated depreciation and impairment
Jan 1, 2025 balance	$ -	($ 12,102)
Disposals	-	-
Account transfer	-	-
Depreciation	-	(2,343)
Impairment Loss	-	-
Dec 31, 2025 balance	$ -	($ 14,443)
Dec 31, 2025 Carrying amounts	$ 1,807,339	$ 1,574
Jan 1, 2024 balance	$ 1,847,871	$ 16,019
Additives	-	-
Disposals	-	-
Account transfer	-	-
Dec 31, 2024 balance	$ 1,847,871	$ 16,019
Accumulated depreciation and impairment
Jan 1, 2024 balance	$ -	($ 9,459)
Disposal	-	-
Account transfer	-	-
Depreciation	-	(2,643)
Dec 31, 2024 balance	$ -	($ 12,102)
Dec 31, 2024 Carrying amounts	$ 1,847,871	$ 3,917

a. The property, plant and equipment of the 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

37 -

Transportation
Lift repair and maintenance
works 2 to 5 years
Stacker and pallet truck 5 to 6 years
Company Vehicle 4 to 8 years
Machinery equipment
Electrical engineering 2 to 8 years
Machinery engineering 9 to 15 years
Misc. equipment
Repair and maintenance
works 2 to 5 years
Other equipment 5 to 10 years

b. The amount of property, plant and equipment that the company sets pledge as loan guarantee, the details are as follows (please refer to Note 17 and 29):

	Dec 31, 2025	Dec 31, 2024
Land and building	$ 2,651,203	$ 2,762,512

14. Lease Agreement

a. Right of use assets

	Dec 31, 2025	Dec 31, 2024
Right of use assets carrying amount
Land	$ 4,117	$ -
	2025	2024
Additions to right of use assets	$ 4,243	$ 6

Depreciation of right of use assets

Land $ 126 $ 195

b. Lease Liabilities

	Dec 31, 2025	Dec 31, 2024
Lease liabilities carrying amount
Current	$ 175	$ -
Non-current	$ 3,924	$ -

Lease liabilities' discount rate range as follows :

	Dec 31, 2025	Dec 31, 2024
Land	2.23833%	-
c. Other information on lease
	2025	2024
Short-term lease expenses	$ 27,789	$ 29,221
Total of cash outflow from leasing	$ 27,985	$ 29,238

15. 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 17 and 29).

16. Other Intangible Assets

	Software costs	Other intangible assets	Total
Cost
Jan 1, 2025 balance	$ 8,882	$ 1,182	$ 10,064
Purchased this period	5,564	44	5,608
Reduction this period	( 1,828)	( 386)	( 2,214)
Dec 31, 2025 balance	$ 12,618	$ 840	$ 13,458
Accumulated amortization and impairment
Jan 1, 2025 balance	($ 5,500)	($ 712)	($ 6,212)
Amortized this period	( 3,303)	( 323)	( 3,326)
Reduction this period	1,828	386	2,214
Dec 31, 2025 balance	($ 6,675)	($ 649)	($ 7,324)
Dec 31, 2025 net	$ 5,943	$ 191	$ 6,134

39 -

Cost

Jan 1, 2024 balance	$ 12,042	$ 773	$ 12,815
Purchased this period	1,670	872	2,542
Reduction this period	( 4,830)	( 463)	( 5,293)
Dec 31, 2024 balance	$ 8,882	$ 1,182	$ 10,064

Accumulated amortization and impairment

Jan 1, 2024 balance	($ 8,074)	($ 573)	($ 8,647)
Amortized this period	( 2,256)	( 602)	( 2,858)
Reduction this period	4,830	463	5,293
Dec 31, 2024 balance	($ 5,500)	($ 712)	($ 6,212)

Dec 31, 2024 net $ 3,382 $ 470 $ 3,852

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

Software costs	3 years
Other intangible assets	3 years

17. 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 property, plant, equipment as of December 31, 2024 (please refer to Note 13 and 29).

b. Shot-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 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	-

41 -

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)

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.

Less: Partially transferred to current liabilities due within one year	1,765,000	1,690,000
	( 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 Investment Property, Plant and Equipment, please refer to Note 13 ~ 15 and 29.

Other Account Payable

	Dec 31, 2025	Dec 31, 2024
Collection and payment	$ 538,431	$ 1,015,077
Year-end bonus payable	91,068	91,619
Salary payable	56,341	57,115
Water and electricity bill payable	44,889	45,220
Other payables-related party (Note 28)	19,170	38,872
Purchase of equipment payable	28,710	8,591
Investment payable	-	1,919
Other payables	248,913	251,050
	$ 1,027,522	$ 1,509,463

42 -

19. Retirement Benefit Plans

a. Defined contribution plans

The pension system of the "Labor Pension Act" applicable to the Company 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.

b. Defined benefit plans

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

Amounts recognized in respect of these defined benefit plans included in the parent company only balance sheet were as follows:

	Dec 31, 2025	Dec 31, 2024
Present value of defined benefit obligation	$ 334,079	$ 338,983
Fair value of plan assets	( 161,118 )	( 157,537 )
Net defined benefit liability	$ 172,961	$ 181,446

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

	Present value of defined benefit obligation	Fair value of plan assets	Net defined benefit liability (asset)
Jan 1, 2025 balance	$ 338,983	($157,537)	$ 181,446
Service cost
Current service cost	1,180	-	1,180
Previous service cost	859	-	859
Net interest expense (income)	5,085	( 2,457 )	2,628
Remeasurement on the net defined benefit	7,124	( 2,457 )	4,667
Remeasurement
Return on plan assets (excluding amounts included in net interest expense)	-	( 10,766 )	( 10,766 )

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

	Present value of defined benefit obligation	Fair value of plan assets	Net defined benefit liability (asset)
Actuarial loss (gain)
— changes in financial assumptions	3,581	-	3,581
Recognized in other comprehensive income	10,114	( 10,766 )	( 652 )
Paid by employer	-	( 12,500 )	( 12,500 )
Benefit costs	( 22,142 )	22,142	-
Dec 31, 2025	$ 334,079	($ 161,118 )	$ 172,961
Jan 1, 2024 balance	$ 342,178	($ 138,843)	$ 203,335
Service cost
Current service cost	1,474	-	1,474
Previous service cost	1,661	-	1,661
Net interest expense (income)	4,277	( 1,812 )	2,465
Remeasurement on the net defined benefit	7,412	( 1,812 )	5,600
Remeasurement
Return on plan assets (excluding amounts included in net interest expense)	-	( 12,085 )	( 12,085 )
Actuarial loss (gain)
— changes in financial assumptions	( 7,732 )	-	( 7,732 )
Actuarial loss (gain)
— from experience adjustment	7,666	-	7,666
Recognized in other comprehensive income	( 66 )	( 12,085 )	( 12,151 )
Paid by employer	-	( 15,338 )	( 15,338 )
Benefit costs	( 10,541 )	10,541	-
Dec 31, 2024	$ 338,983	($ 157,537 )	$ 181,446
	2025	2024
---	---	---
Categorized by functions
Operating cost	$ 3,686	$ 4,598
Management expense	738	705
R&D expense	243	297
	$ 4,667	$ 5,600

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

(1) Investment risk: The pension funds are invested in domestic (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 Company 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 plan assets of the company and the present value of the defined benefit obligation 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%	1.500%
Future salary increase rate	2.500%	2.500%

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%	($ 7,104)	($ 7,473)
Decrease 0.25%	$ 7,341	$ 7,473
Expected salary increase rate
Increase 0.25%	$ 7,139	$ 7,524
Decrease 0.25%	($ 6,945)	($ 7,524)

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	$ 12,282	$ 12,480
Defined benefit obligation average maturity	8.6 years	8.9 years

45 -

20. 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	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 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

(1) According to the surplus distribution policy of the 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 22 (7) Employee Compensation and Board of Directors' Compensation for the compensation policy stipulated in the policy articles of the company.

(2) 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.

(3) 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 9, 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 company. The legal capital reserve can be used to make up for losses. When the 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 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. Treasury stock

(1) The changes in shares held by the 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 the company'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 company'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.

Income

	2025	2024
Nylon Chip	$ 2,526,624	$ 4,525,473
Nylon Yarn	1,038,468	1,542,646
Woven (knitted) fabrics	3,764,356	3,412,057
Petrochemical Products	-	22,826
Others	1,045,227	1,166,089
	$ 8,374,675	$ 10,669,091

Continuing operation unit net profit

a. Interest income

	2025	2024
Bank deposits	$ 26,956	$ 59,140
Interests from related parties	43,397	40,779
Add(Less): Deferred income	352	( 352 )
	$ 70,705	$ 99,567

b. Other income

	2025	2024
Lease income	$ 20,744	$ 21,237
Dividend income	3,961	2,246
Other	19,137	20,634
	$ 43,842	$ 44,117

c. Other gains and losses

	2025	2024
Gain on disposal of property, plant and equipment	$ 5,044	$ 4,471
Gain on disposal of investments	-	187
Gain (loss) on foreign exchange, net	( 116,276 )	333,145
Gain on financial assets and liability at FVTPL, net	1,697	56,351
Impairment loss on property, plant and equipment	( 314,778 )	-
Other losses	( 42,744 )	( 6,430 )
	($ 467,056)	$ 387,724

d. Financial cost

	2025	2024
Interest of bank loan	$ 99,569	$ 97,146
Interest of loan from related parties	3,949	4,094
Interests of lease liability	53	-
Financial expenses	438	289
	$ 104,009	$ 101,529

Information about interest capitalization is as follows :

	2025	2024
Interest capitalization amount	$ 1,144	$ 463
Interest capitalization rate	2.10166%~	2.10374%~
	2.26036%	2.27923%

e. Depreciation and amortization

	2025	2024
Property, plant and equipment	$ 546,096	$ 580,537
Right of use assets	126	195
Intangible assets	3,326	2,858
Down payment	66,003	62,896
Total	$ 615,551	$ 646,486

Categorized depreciation expenses by function

Operating cost	$ 519,127	$ 568,705
Operating expenses	7,342	7,432
Other Gains and Loss	19,753	4,595
	$ 546,222	$ 580,732

Categorized amortization
expenses by function
Operating cost $ 67,849 $ 62,642
Operating expenses 1,394 3,112
Other Gains and Loss 86 -
$ 69,329 $ 65,754

f. Expenses for employee benefits

	2025			2024
	Operating cost	Operating expenses	Total	Operating cost	Operating expenses	Total
Salary expenses	$ 679,326	$ 128,541	$ 807,867	$ 679,369	$ 144,329	$ 823,698
Labor and health insurance expenses	77,171	12,996	90,167	72,994	12,741	85,735
Retirement benefits
Defined contribution plan	20,040	5,344	25,384	19,884	5,371	25,255
Defined benefit plan (Note 19)	3,686	981	4,667	4,598	1,002	5,600
	23,726	6,325	30,051	24,482	6,373	30,855
Compensation to directors	-	3,600	3,600	-	3,600	3,600
Other employee benefit	66,717	10,054	76,771	75,428	11,101	86,529
Total expenses of employee benefit	$ 846,940	$ 161,516	$1,008,456	$ 852,273	$ 178,144	$1,030,417

g. Employees' and Boards' remunerations

After Amendment of the Articles of Incorporation

According to the provisions of the company'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 company's 2026 and 2025 board resolutions, please refer to the "Public Information Observatory" of the Taiwan Stock Exchange website.

23. 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	$ 2,125	$ 2,261
Adjustments on prior years	-	-
	2,125	2,261
Deferred income tax
Recognized in the current year	( 113,436 )	( 9,780 )
Adjustment on prior year	74	-
	( 113,362 )	( 9,780 )
Income tax profit recognized in profit and loss	($ 111,237 )	($ 7,519 )

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	($ 192,165)	$ 6,484
Tax effect of adjusting items
Investment profit recognized by the equity method	( 12,988)	( 25,163)
Financial asset evaluation (profit) loss	( 770)	( 2,094)
Gain on disposal of investment	-	( 38)
Realized investment losses	-	( 6,143)
Taxable dividend income	2,406	-
Tax-free dividend losses are not deductible	-	( 449)
Tax-free dividend losses are not deductible	20,274	17,337
Unrecognized loss deduction	64,604	-
Adjustments to income tax expense of prior years in the current year	74	-
Other	7,328	2,547
Income tax profit recognized in profit and loss	($ 111,237)	($ 7,519)

b. Deferred income tax assets and liabilities

	Dec 31, 2025	Dec 31, 2024
Deferred income tax assets
Temporary difference
Allowance for impairment loss on inventory	$ 85,519	$ 79,993
Unallocated inventory cost for manufacturing	19,013	17,173
Unrealized investment loss	5,042	5,042
Defined actuarial profit and loss of retirement plan	12,982	14,549
Sales discount	609	100
Loss deduction	369,257	326,848
Bonus for no-leave	5,227	5,404
Unrealized gross loss	54	-
Allowance for impairment loss on idle assets	62,956	-
Other	541	1,208
	$ 561,200	$ 450,317
Deferred income tax liability
Temporary difference
Unrealized gross profit	$ -	$ 638
Unrealized exchange gains	3,837	5,247
Unrealized gain of financial assets measured at FVTPL	62	493
Land appreciation tax preparation	146,650	146,650
	$ 150,549	$ 153,028

c. Current tax asset and liabilities

	Dec 31, 2025	Dec 31, 2024
Current tax asset	$ 13,390	$ 16,632

d. Deferred tax assets on unused loss deduction not recognized in the consolidated balance sheet

	Dec 31, 2025	Dec 31, 2024
Loss deduction
Due in 2030	$ -	$ -
Due in 2031	323,020	-
Due in 2032	-	-
Due in 2033	-	-
Due in 2034	-	-
	$ 323,020	$ -

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
722,523	2030
430,162	2033
106,634	2034
532,099	2035
$ 2,165,964

f. The company's business income tax declarations up to and including 2023 have been approved by the tax authorities..

(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)
	Net (loss) income (Belong to company's shareholder)	Share (denominator) (thousand share)	Net income (loss) (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

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. For details regarding the disposal of LIBOLON ENERGY CO. LTD, please refer to Note 26 to the consolidated financial statements.

54 -
Capital risk management

The 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 company has no other restrictions on external capital regulations.

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	69,312	-	-	69,312
Domestic not listed (OTC) common stocks	-	-	5,527	5,527
Not listed abroad (OTC) common stocks	-	-	320	320
	$ 69,312,	$ 317	$ 5,847	$ 75,476
Financial assets measured at fair value through other comprehensive income
Domestic listed stocks	$ 473,424	$ -	$ -	$ 473,424
Financial liability at fair value through profit or loss
Derivative financial instruments — Cross-currency swap contracts	$ -	$ 6	$ -	$ 6

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
Domestic not listed (OTC) common stocks	-	-	5,744	5,744
Not listed abroad (OTC) common stocks	-	-	320	320
	$ 65,461	$ 2,465	$ 6,064	$ 73,990
Financial assets measured at fair value through other comprehensive income
Domestic listed stocks	$ 670,506	$ -	$ -	$ 670,506

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.

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	$ 75,476	$ 73,990
Financial assets measured by amortized cost (Note 1)	3,473,192	4,705,220
Financial assets measured through other comprehensive income
Equity instrument investment	473,424	670,506

56 -

Financial liabilities

Measured at FVTPL

Mandatorily measured at FVTPL	$ 6	$ 6
Financial liabilities measured by amortized cost (Note 2)	6,594,829	7,826,954

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 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 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 company did not trade financial instruments (including derivative financial instruments) for speculative purposes.

57 -

(1) Market risk

The main financial risk of the 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 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	$ 8,701	$ 6,138

(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	$ 965,814	$ 1,326,135
—Financial liabilities	1,479,099	3,360,000
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 company has the right to request for collateral or other guarantees from major transaction partners. Accordingly, the management of the company believes that the credit risk has been significantly reduced.

(3) Liquidity risk

The 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 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 Company. For the unused financing amount of the consolidated company, please refer to the following (c) Financing Description.

(a) Liquidity and interest rate risk table of non-derivative financial liabilities

The remaining contract maturity analysis of non-derivative financial liabilities is based on the earliest possible repayment date of the 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	$ 3,300,000	$ -	$ -
Short-term bills payable	0	-	-
Notes payable (including related parties)	39,379	-	-
Accounts payable (including related parties)	405,622	-	-
Other payable	832,455	-	-
Loan from related parties	222,000	-	-
Current provisions	7,715	-	-
Lease liabilities (current and non-current)	261	261	4,444
Long-term loan (including 1 year or due within the operating cycle)	146,000	696,0001	923,000
Guarantee deposits received	-	373	-
	$ 4,983,432	$ 696,634	$ 927,444

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)	844,125	-	-
Other payable	1,312,392	-	-
Loan from related parties	298,000	-	-
Current provisions	501	-	-
Long-term loan (including 1 year or due within the operating cycle)	-	110,000	1,580,000
Guarantee deposits received	-	367	-
	$ 6,137,088	$ 110,367	$ 1,580,000

(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.

	Dec 31, 2025	Dec 31, 2024
Unsecured Bank Loan Facilities
— Amount Utilized	$ 4,020,000	$ 3,750,000
— Amount Unutilized	8,658,293	3,912,046
	$ 12,678,293	$ 7,662,046
Secured Bank Loan Facilities
— Amount Utilized	$ 1,075,000	$ 1,600,000
— Amount Unutilized	875,431	150,000
	$ 1,975,431	$ 1,750,000

28. Trading with Related Parties

Except for the other notes on the disclosures, the transactions between the 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)
LI MAO INVESTMENT CO. LTD.	Subsidiary
LI SHING INVESTMENT CO. LTD.	Subsidiary
HUNG HSING INVESTMENT CO. LTD.	Subsidiary
ETON PETROCHEMICAL CO.LTD.	Subsidiary
PT. INDONESIA HWALIN KNITTING	Subsidiary
In Talent Investments Limited	Subsidiary
ETON PETROCHEMICAL	Sub-subsidiary
INTERNATIONAL CO. LTD.
LIBOLON (SHANGHAI) INTERNATIONAL TRADING CO., LTD.	Sub-subsidiary
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.
LEALEA HOTELS & RESORTS CO., LTD.

Other
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
	Sub-subsidiary	66,030	177,857
	Associated company	225,063	484,182
Service revenue	Subsidiary	6,880	15,071
		$ 645,523	$ 1,374,431

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	$ 841,609	$ 885,495
Sub-subsidiary	68,463	61,682
Associated company	110,462	44,853
	$ 1,020,534	$ 992,030

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	$ 14,953	$ 27,468
	Other	249	-
		15,202	27,468
Accounts receivable	Investors with significant influence	$ 24,033	$ 42,481
	Subsidiary	412	611

61 -

Accounting item	Related Party Category/Name	Dec 31, 2025	Dec 31, 2024
	Sub-Subsidiary
	LIBOLON(SHANGHAI)	476	34,586
	Associated company	14,767	15,338
		39,688	93,016
Other receivables (excluding interest receivables)	Investors with significant influence	5,480	7,881
	Subsidiary
	Eton Petrochemical Co.	538,257	1,015,149
	Other	122	122
	Sub-subsidiary	126	26
	Associated company	1,357	2,217
	Other	1	1
		545,343	1,025,396
		$ 600,233	$ 1,145,880

No guarantee is received for the accounts receivable from related parties. No allowance for losses is provided for accounts receivable from related parties in the end of 2025 and 2024. The collection and payment deadlines for the Company and related parties, except that Libolon (Shanghai)'s payment term is 120 days, are not materially differentiated from those for general customers and manufacturers.

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	87,684
	Sub-subsidiary	65	6,192
	Associated company	1,829	10,418
		56,668	104,294
Other payable (excluding interest payable)	Investors with significant influence	1,745	2,015
	Associated company
	Lea Jie Energy	13,306	27,042
	Other	3,773	9,222
		18,824	38,279
Payables for Acquisition of Equipment	Associated company	5	100
		$ 77,916	$ 145,767

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

f. 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

g. Acquisition of property, plant and equipment

	Acquisition price
Related Party Category/Name	2025	2024
Associated company	$ 5,683	$ 1,255-

h. Acquisition of other assets

		Acquisition price
Related Party Category	Accounting item	2025	2024
Associated company	Other intangible assets – computer software	$ 4,819	$ 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	Transaction Date
Associated company RICH DEVELOPMENT CO. LTD.	Accounting item	January 2025	183,600	LIBOLON ENERG CO. LTD. Equity	$ 1,836

j. Loan to related parties

	From Jan.1 to Dec 31, 2025
	Highest balance	Balance, end of year	Interest range( % )	Interest income	Interest receivable
Subsidiary
Eton
Petrochemical	$ 665,110	$ 455,735	2.53919~2.55517	$ 16,844	$ 1,312
Sub-subsidiary
Eton
Petrochemical international	249,038	-	2.45361~2.54537	3,172	200
Associated company
PT. INDONESIA LIBOLON FIBER
SYSTEM	663,104	646,201	2.45361~2.55000	15,665	1,413
Li Ling	217,000	217,000	2.39011~2.54537	5,168	468
Libolon Energy	140,000	60,000	2.53919~2.55517	2,548	129
		$ 1,378,936		$ 43,397	$ 3,522
	From Jan.1 to Dec 31, 2024
---	---	---	---	---	---
	Highest balance	Balance, end of year	Interest range( % )	Interest income	Interest receivable
Subsidiary
Eton
Petrochemical	$ 834,830	$ 278,673	2.55000~3.10000	$ 18,280	$ 1,672
Libolon Energy	180,000	180,000	2.50170	370	370
Sub-subsidiary
Eton
Petrochemical international	389,750	-	2.55000~3.10000	3,151	374
Associated company
PT. INDONESIA LIBOLON FIBER
SYSTEM	879,498	561,279	2.55000~3.10000	16,808	1,232
Li Ling	230,000	230,000	2.26363~2.50170	2,170	422
		$ 1,249,952		$ 40,779	$ 4,070

k. Loan from related parties

	Dec 31, 2025
	Highest balance	Balance, end of year	Interest range( % )	Interest expense	Interest payable
Subsidiary
Li Mao Co.	$ 80,000	$ 40,000	1.83919~1.87812	$ 860	$ 63
Li Shing Co.	78,000	50,000	1.83919~1.87812	826	78
Hung Hsing Co.	60,000	40,000	1.83919~1.87812	702	62
Associated company
Li Hao Co.	65,000	60,000	1.8122~1.87226	1,119	93
Li Zan Co.	32,000	32,000	1.8122~1.87226	442	50
		$ 222,000		$ 3,949	$ 346
	Dec 31, 2024
	Highest balance	Balance, end of year	Interest range( % )	Interest expense	Interest payable
Subsidiary
Li Mao Co.	$ 80,000	$ 80,000	1.69002~1.87844	$ 953	$ 128
Li Shing Co.	78,000	78,000	1.69002~1.87844	1,081	124

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
Subsidiary	5	8
Associated company
Lealea Technology	5,849	5,986
Other	2,769	2,512
Other	16	18
	$ 18,265	$ 16,233

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
Subsidiary	-	-
Sub-subsidiary	4,224	4,519
Associated company
Li Ling	789	3,551
Other	316	454
Other	4	23
	$ 15,589	$ 23,020
Lease expense	2025	2024
Investors with significant influence
Lealea enterprise	$ 26,783	$ 28,278

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	$ 25,964	$ 25,218
Ohter 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 :

	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.

67 -
Pledged assets

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

	Dec 31, 2025	Dec 31, 2024
Pledged deposit receipt (Account for other financial assets –current) (Note 6 and 10)	$ 2,000	$ 2,000
Property, plant and equipment (Note 13)	2,651,203	2,762,512
Investment real estate(Note15)	40,532	-
	$ 2,693,735	$ 2,764,512

Significant contingent liabilities and unrecognized commitments

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

On December 31, 2025 and 2024, the 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	$ 32,997	$ 74,590
JPY	11,496	331,244
NTD	42,000	60,722

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 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
	Dec 31, 2025
	Foreign currency	Exchange rate	Carrying amount
Financial assets
Currency items
USD	$ 85,464,124	31.43	$ 2,686,137
		( USD : NTD )
JPY	11,224	0.2008	2
		(JPY : NTD )

Dec 31, 2025

	Foreign currency	Exchange rate	Carrying amount
Non currency items
Financial assets measured at FVMTPL-non-current USD	$ 96,149	31.43
(USD : NTD)	$ 3,022
Derivative financial instruments USD	4,000,000
(contract amount)	31.43
(USD : NTD)	317
Investment using equity method IDR	284,313,847,715	0.0018728
(IDR : NTD)	532,463
Financial liabilities
Currency items USD	30,095,995	31.43
(USD : NTD)	945,917
	Dec 31, 2024
	Foreign currency	Exchange rate	Carrying amount
Financial assets
Currency items USD	$ 90,508,772	32.785
(USD : NTD)	$ 2,967,330
JPY	206,935,629	0.2099
(JPY : NTD)	43,436
Non currency items
Financial assets measured at FVMTPL-non-current USD	96,149	32.785
(USD : NTD)	3,152
Derivative financial instruments USD	10,000,000
(contract amount)	32.785
(USD : NTD)	2,465
Investment using equity method IDR	295,765,841,755	0.0020285
(IDR : NT)	599,960
Financial liabilities
Currency items USD	53,067,436	32.785
(USD : NTD)	1,739,816

68 -

The Company recognized unrealized foreign exchange losses of NT$116,276 thousand and unrealized foreign exchange gains of NT$333,145 thousand for the fiscal years 2025 and 2024, respectively.

Due to the wide variety of currencies involved in the Company's foreign exchange transactions, it is not practicable to disclose exchange gains and losses by individual foreign currencies with a significant impact.

32. Disclosed items in notes

a. Major transaction items related information:

(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)

b. Reinvestment business related information (Attached table 6)

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 7)
(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 8)

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

69 -

(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 company has disclosed segment information in the consolidated financial report, and this parent company only financial report does not disclose relevant information separately.

70 -

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 loanee	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

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.

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
	Li Peng Enterprise Co., Ltd.	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.	#	#	306,219	27,039	0.01	27,039
	Information Technology Total Services Co. Ltd.	#	#	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.	#	#	150,000	320	0.26	320
Book4u Co., Ltd.	#	#	6,250	-	0.12	-

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

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	n	Loan receivable 455,735	NA	-	-	3,143	-
n	PT INDONESIA LIBOLON FIBER SYSTEM	A related party in which the company directly holds 30% of its shares	Loan receivable 646,201	NA	-	-	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.

Li Peng Enterprise Co. Ltd.

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

Jan 1 to Dec 31, 2025

Attached Table 6
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 last year	Shares	PercentageofOwnership	Carrying amount
Li Peng Enterprise Co., Ltd.	In Talent Investments Limited	Samou	Reinvestment related business	$ 65,893	$ 65,893	2,000,000	100.00	$ 277,635	$ 5,775	$ 6,453
o	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
o	Hung Hsing Investment Co., Ltd.	o	o	401,449	401,449	26,296,000	53.02	199,228	1,094	580
o	Li Shing Investment Co., Ltd.	o	o	415,280	415,280	42,400,000	53.00	349,103	9,069	4,807
o	Li Hao Investment Co., Ltd.	o	o	363,629	363,629	35,244,000	46.62	315,728	4,231	1,972
o	Li Zan Investment Co., Ltd.	o	o	329,212	329,212	21,540,000	46.83	155,761	( 5,266 )	( 2,466 )
o	Lealeu Technology Co., Ltd.	o	Technology software services	40,408	40,408	13,407,953	18.20	224,191	290,541	52,877
o	Li Ling Film Co., Ltd.	o	Nylon film production	6,000	6,000	600,000	1.00	624	( 164,249 )	( 1,967 )
o	Rich Development Co., Ltd.	8th Floor, No. 99, Jilin Road, Taipei City	Entrusted builders to build commercial buildings and lease and sell residential buildingsAutomobile container freight industry, warehousing industry, automobile and parts manufacturing industry	492,829	492,829	52,651,387	6.87	935,749	118,299	8,128
o	Fu Li Transport Co., Ltd.	No. 122, Zili Second Street, Wuqi District, Taichung City	Coal retail and wholesale	28,000	28,000	2,800,000	20.00	35,734	4,065	813
o	Lea Jie Energy Co., Ltd.	4th Floor, No.162 Songjiang Road, Taipei City	Power Generation	90,000	90,000	9,000,000	30.00	98,618	9,918	3,005
o	Libolon Energy Co., Ltd.	No. 38, Gongye Road, Houliao Village, Fangyuan Township, Changhua County	Knitted fabric, fabric improvement	42,448	4,284	4,244,800	40.00	46,680	10,818	4,328
o	PT.INDONESIA LIBOLON FIBER SYSTEM	Lantai 1 JI. Cideng Barat No. 15, RT/011/BW.001 Kel. Duri Pulo. Kec, Gambir. DKZ Jakarta	Processing and manufacturing of telescopic nylon knitted fabrics, various man-made fiber fabrics, embryonic fabrics and other import and export trade business.	937,995	937,995	6,930,000	30.00	768,893	( 92,052 )	( 31,826 )
o	PT. INDONESIA HWALIN KNITTING	J1. Raya Ubrug RT 003 RW 001 Kembang Kuning Jatiluhur Kab. Purwakarta Jawa Barat	Chemical raw material wholesale	203,427	203,427	7,550,000	82.07	183,725	3,318	5,006
o	Eton Petrochemical Co., Ltd.	4th Floor, No.162 Songjiang Road, Taipei City	Chemical raw material wholesale	9,000	9,000	5,265,000	75.00	77,309	12,834	9,626

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 7 and 8 for relevant information of China investee companies.

Li Peng Enterprise Co. Ltd.
Information on investment in mainland China
Jan 1 to Dec 31, 2025
Attached Table 7
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.

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 8

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	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.

§DIRECTORY OF IMPORTANT ACCOUNTING ITEMS§

ITEM	STATEMENT INDEX
List of assets, liabilities and equity items
List of cash and cash equivalents	List 1
List of Financial assets measured at FVTPL-current	List 2
List of notes receivable	List 3
List of notes receivable- related parties	List 4
List of accounts receivable	List 5
List of accounts receivable — related parties	List 6
List of inventories	List 7
List of advance payments	List 8
List of other financial assets—current	Note 10
List of financial assets measured at FVTOCI—non-current changes	List 9
List of financial assets measured at FVTPL—non-current changes	List 10
List of investments using equity method	List 11
List of changes to property, plant and equipment	Note 13
List of changes in accumulated depreciation of property, plant and equipment	Note 13
List of changes to other intangible assets	Note 16
List of deferred tax assets	Note 23
List of changes in right-of-use assets	List 12
List of short-term loan	List 13
List of notes payable	List 14
List of notes payable—related parties	List 15
List of accounts payable	List 16
List of accounts payable—related parties	List 17
List of other payable	Note 18
List of other current liabilities	List 18
List of long-term loan	List 19
Long-term borrowings, current portion	List 20
List of deferred tax liabilities	Note 23
List of profit and loss
List of operating income	List 21
List of operating cost	List 22
List of sales expenses	List 23
List of management expenses	List 24
List of research and development expenses	List 25
List of other income	Note 22
List of other profit and loss	Note 22
Employee benefits, depreciation, depletion and amortization expenses incurred in the current period Summary Table	List 26

Li Peng Enterprise Co. Ltd.
List of Cash and Cash Equivalents
Dec 31, 2025

List 1
Unit: NTD thousand/Foreign currency

Item	Summary	Amount
Cash on hand		$ 519
Bank cheques and current saving		120,357
Foreign currency saving (Note)
Current saving	USD 13,717,654	431,146
	EUR 15,345	566
	JPY 10,924	2
	CNY 2,144	10
Time deposit	maturity date	411,733
	Jan. 6, 2026
	Interest rate 3.68%~
	4.04% , USD13,100,000
		$ 964.333,

Note: Dec 31, 2025 end of date exchange rate
USD: NTD = 1 : 31.43
EUR: NTD = 1 : 36.9
JPY: NTD = 1 : 0.2008
CNY: NTD = 1 : 4.496

Li Peng Enterprise Co. Ltd.
List of Financial assets measured at FVTPL-current
Dec 31, 2025
Unit : NTD thousand

List 2

	Summary	Shares	Value	Total value of stocks or bonds	Acquired cost	Accumulated loss	Fair value Unit price	Total amount	Guarantee or pledge provided
Trade-van Information Services Co., Ltd.	Listed stock	427,675	10	$ 4,277	$ 59,325	$ -	95	$ 40,629	Nil
Far EasTone Telecommunications Co., Ltd. (Note)	Listed stock	306,219	10	3,062	32,772	-	88.3	27,039	Nil
Information Technology Total Services CO., Ltd.	Over-The-Counter (OTC) stock	33,750	10	337	-	-	48.7	1,644	Nil
TCB Bank	Cross-currency swap contracts	-	-	-	-	-		147	Nil
Land Bank	Cross-currency swap contracts	-	-	-	-	-		170	Nil
				$ 7,676	$ 92,097	$ -		$ 69,629

Note: The original acquisition cost of Asia-Pacific Telecom was NTD 50 million, and the impairment loss was listed in 2006. The company reduced the capital on November 8, 2019 to make up for the loss. The stock exchange date was January 17, 2020, so the cost after the capital reduction was NTD 32,772 thousand and calculate the market value based on the proportion of capital reduction. Far EasTone Telecommunications and Asia Pacific Telecommunications merged on October 30, 2023. Each Asia Pacific Telecommunications share was exchanged for 0.00934406 Far EasTone Telecommunications shares. The acquisition cost was NT 32,772 thousand, and the market value was calculated based on the stock closing price.

Li Peng Enterprise Co. Ltd.
List of notes receivable
Dec 31, 2025

List 3
Unit : NTD thousand

Client name	Summary	Amount
Notes receivable—ordinary businesses
HO YU Textile CO., LTD..	Receivables for goods	$ 5,329
CHUN JIAN ENTERPRISE CO., LTD	''	3,641
GOLDEN LIGHT ENTERPRISE CO., LTD	''	3,126
TZAY HWA INDUSTRY CO., LTD.	''	2,315
FORTUNETEX CO., LTD	''	2,099
FEI PO CO., LTD.	''	1,636
Others (Note)	''	12,645
		30,791
Less : allowance for loss		( 308 )
		$ 30,483

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

Li Peng Enterprise Co. Ltd.
Notes receivable-list of related parties
Dec 31, 2025

List 4
Unit : NTD thousand

Client name	Summary	Amount
LI LING FILM CO., LTD.	Receivables for goods	$ 14,953
Others (Note)	“	249

$ 15,202

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

Li Peng Enterprise Co. Ltd.
List of accounts receivable
Dec 31, 2025

List 5
Unit : NTD thousand

Client name	Summary	Amount
Accounts receivable—ordinary businesses
W.L.GORE&ASSOCIATES (HONG KONG) LTD	Receivables for goods	$ 44,457
CHAIN YARN CO., LTD.	〃	34,416
HUNG'S FORTUNE INTERNATIONAL CO., LTD.	〃	32,862
DESIPRO PTE LTD	〃	30,917
Acelon Chemicals & Fiber Corp	〃	28,598
Others (Note)	〃	299,927
		471,177
less : allowance for loss		( 3,730 )
		$ 467,447

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

Li Peng Enterprise Co. Ltd.
List of accounts receivable—related parties
Dec 31, 2025

List 6
Unit : NTD thousand

Client name	Summary	Amount
LEALEA ENTERPRISE CO., LTD.	Receivables for goods	$ 24,033
LI LING FILM CO., LTD.	〃	14,199
Others ( Note )	〃	1,456
		$ 39,688

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

Li Peng Enterprise Co. Ltd.
List of inventories
Dec 31, 2025

List 7
Unit : NTD thousand

Item	Total cost	Total market price
Raw materials
Yarn	$ 353,840	$ 261,411
Dye auxiliaries	29,580	27,667
Plastic- masterbatch	79,392	69,197
Chemical raw materials	54,442	9,239
Processing oil, stabilizer and other auxiliary materials	61,082	53,804
Dyed yarn raw material	11,806	8,674
Laminating raw material	18,339	18,339
Materials cost	608,481	448,331
Materials	97,628	67,862
Raw materials in transit	15,649	15,649
Semi-finished greige
–inhouse weaving	62,465	62,465
Greige	272,394	224,577
Semi-finished dye product
–inhouse dye	75,584	74,428
–outsourced dye	108,350	106,945
Dyed yarn
Making dyed yarn	8,462	7,890
Nylon chip
Making plastic-masterbatch	159	140
Making nylon chip	201,564	179,682
Making nylon yarn	2,177	2,018
Processed goods cost	731,155	658,145
Colored fabric	313,537	250,303
Dyed yarn	16,981	14,471
Plastic masterbatch	45,267	32,709
Nylon yarn and chip	527,184	446,482
Processed dyes	24,451	24,391
Inventory in transit	133,110	127,503
Production cost	1,060,530	895,859
Less: allowance for loss of inventory depreciation	( 427,597 )	-
	$ 2,085,846	$ 2,085,846

Li Peng Enterprise Co. Ltd.
List of other financial assets – current
Dec 31, 2025

List 8
Unit : NTD thousand

Item	Summary	Amount
Other prepaid expenses		$ 12,779
Advance payment		32,978
Advance insurance payment		5,287
Other advance payments	Advance lease payment and other	5,142
		$ 56,186

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

Li Peng Enterprise Co. Ltd.
List of financial assets measured at FVTOCI—non-current changes
2025
List 9
Unit : NTD thousand

	Balance, beginning of the period		Increase		Decrease		Balance, end of the period		Guarantee or pledge provided
Company Name	Shares	Fair value	Shares	Amount	Shares	Amount	Shares	Fair value
Stocks
LEALEA ENTERPRISE CO., LTD.	75,677,924	$ 670,506	2,964,000	$ 20,894	-	$ 217,976	78,641,924	$ 473,424	Nil

List 10
List of financial assets measured at FVTPL—non-current changes
2025
Unit : NTD thousand

Company Name	Balance, beginning of the period		Increase		Decrease		Reclassification		Balance, end of the period		Guarantee or pledge provided
	Shares	Fair value	Shares	Amount	Shares	Amount	Shares	Amount	Shares	Fair value
Taiwan Filament Weaving Development Co., Ltd.	3,302,964	$ 5,527	-	$ -	-	$ -	-	$ -	3,302,964	$ 5,527	Nil
Huazhi Venture Capital Co., Ltd.	21,739	217	-	-	21,739	217	-	-	-	-	〃
TECHGAINS PAN-PACIFIC CORP	150,000	320	-	-	-	-	-	-	150,000	320	〃
Book4u Co., Ltd.	6,250	-	-	-	-	-	-	-	6,250	-	〃
		$ 6,064		$ -		$ 217		$ -		$ 5,847

List 11
Unit : NTD thousand

Company Name	Balance, beginning of period		Increase		Decrease		Investment profit (loss)	Balance, end of period			Market price or equity		Guarantee or pledge provided
	Shares	Amount	Shares	Amount	Shares	Amount		Shares	% share hold	Amount	Unit price	Total amount
IN TALENT INVESTMENTS LIMITED	2,000,000	$ 290,623	-	$ -	-	($ 19,441)	$ 6,453	2,000,000	100.00	$ 277,635	139.89	$ 279,774	Nil
Li Mao Investment Co., Ltd.	40,356,000	321,474	-	-	-	( 71,354)	3,599	40,356,000	53.38	253,719	8.73	352,232	Nil
Hung Hsing Investment Co., Ltd.	26,296,000	250,962	-	-	-	( 52,314)	580	26,296,000	53.02	199,228	10.23	268,928	Nil
Li Sing Investment Co., Ltd.	42,400,000	404,820	-	-	-	( 60,524)	4,807	42,400,000	53.00	349,103	8.77	372,024	Nil
Li Hao Investment Co., Ltd.	35,244,000	354,190	-	-	-	( 40,434)	1,972	35,244,000	46.62	315,728	8.96	315,728	Nil
Li Zan Investment Co., Ltd.	21,540,000	199,057	-	-	-	( 40,830)	( 2,466)	21,540,000	46.83	155,761	7.23	155,761	Nil
Lealea Technology Co., Ltd.	11,267,188	188,215	2,140,765	-	-	( 16,901)	52,877	13,407,953	18.20	224,191	16.72	224,191	Nil
Li Ling Film Co., Ltd.	600,000	1,072	-	1,519	-	-	( 1,967)	600,000	1.00	624	0.89	534	Nil
Rich Development Co., Ltd	52,651,387	946,246	-	-	-	( 18,625)	8,128	52,651,387	6.87	935,749	7.90	415,946	Nil
Fu Li Transportation Co., Ltd	2,800,000	36,601	-	-	-	( 1,680)	813	2,800,000	20.00	35,734	12.76	35,734	Nil
Lea Jie Energy Co., Ltd	9,000,000	104,528	-	-	-	( 8,915)	3,005	9,000,000	30.00	98,618	10.96	98,639	Nil
Libolon Energy Co., Ltd.	428,400	4,117	3,816,400	38,235	-	-	4,328	4,244,800	40.00	46,680	11.00	46,680	Nil
PT. INDONESIA LIBOLON FIBER SYSTEM	6,930,000	826,755	-	-	-	( 26,036)	( 31,826)	6,930,000	30.00	768,893	48.03	332,877	Nil
PT INDONESIA HWALIN KNITTING	7,550,000	195,187	-	-	-	( 16,468)	5,006	7,550,000	82.07	183,725	26.44	199,586	Nil
Eton Petrochemical Co., Ltd	2,700,000	81,350	2,565,000	-	-	( 13,667)	9,626	5,265,000	75.00	77,309	14.68	77,309	Nil
		$ 4,205,197		$ 39,754		($ 387,189)	$ 64,935			$ 3,922,697		$ 3,175,943

Li Peng Enterprise Co. Ltd.
List of changes in right-of-use assets
2025
List 12
Unit : NTD thousand

Item	Balance, beginning of period	Increase	Decrease	Balance, end of period
Cost :
Land	$ 984	$ 4,243	$ 984	$ 4,243
Accumulated depreciation :
Land	$ 984	$ 126	$ 984	$ 126

Li Peng Enterprise Co. Ltd.
List of short-term loan
Jan 1 to Dec 31, 2025

List 13
Unit: NTD thousand

	Loan amount	Summary	Contract period	Interest (annual) (%)	Financing amount	Note
First Bank Songjiang Branch	$250,000	Credit loan	2025.12.03~2026.01.02	1.80000	$250,000
SCSB Tucheng Branch	50,000	〃	2025.11.26~2026.01.06	1.87500	50,000
Yuanta Bank	200,000	〃	2025.12.16~2026.03.16	1.84000	200,000
Mega Bank	200,000	〃	2025.12.12~2026.01.12	1.83000	200,000
Taishin Bank	105,000	〃	2025.12.12~2026.01.12	1.84000	200,000	Note1
Jianbei Branch
〃	100,000	〃	2025.12.29~2026.01.06	1.84000	-	〃
〃	300,000	〃	2025.12.26~2026.01.06	1.84000	-	〃
Bank of Taiwan Songjiang Branch	200,000	〃	2025.07.28~2026.01.23	1.85000	1,950,000	Note2
〃	500,000	〃	2025.07.28~2026.01.23	1.85000	-
〃	550,000	〃	2025.08.15~2026.01.27	1.85000	-
〃	30,000	〃	2025.09.26~2026.01.27	1.85000	-
〃	25,000	〃	2025.11.28~2026.02.26	1.83000	-
〃	270,000	〃	2025.12.15~2026.01.15	1.83000	-
〃	130,000	〃	2025.12.29~2026.01.29	1.83000	-
〃	100,000	〃	2025.12.31~2026.02.03	1.83000	-
Cathay United Bank Guang Hua Branch	120,000	〃	2025.12.17~2026.01.16	1.84000	120,000
Chang Hwa Bank Chung-Cheng Branch	200,000	〃	2025.12.24~2026.01.07	1.84000	200,000
	$3,330,000

Note1: The total loan amount of Taishin Bank Jianbei Branch is NT 200,000 thousand
Note2: The total loan amount of Bank of Taiwan Songjiang Branch is NT 1,950,000 thousand

Li Peng Enterprise Co. Ltd.
List of notes payable
Dec 31, 2025

List 14
Unit : NTD thousand

Vendor Name	Summary	Amount
TAIWAN E TEX CO., LTD.	Payment for goods	$ 7,649
ZENITH COLOR CORPORATION		7,223
GOLDEN-KING DYE CO., LTD		4,686
RIITS TRADING CO.,LTD		3,972
CHEER PENG TRADING CO., LTD.		3,293
FARSMART CO., LTD.		3,103
JI.SHENG CHEMICAL CO., LTD.		2,786
Others (Note)	//	4,247
		$ 36,959

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

Li Peng Enterprise Co. Ltd.
List of notes payable — related parties
Dec 31, 2025

List 15
Unit : NTD thousand

Vendor Name	Summary	Amount
FU LI TRANSPORTATION CO., LTD.	Payment for goods	$ 2,420

Li Peng Enterprise Co. Ltd.
List of accounts payable
Dec 31, 2025

List 16
Unit : NTD thousand

Vendor Name	Summary	Amount
Fujian Shenyuan New Materials Co., Ltd.	Payment for goods	$ 233,505
CHUN JIAN ENTERPRISE CO., LTD	„	19,375
Others ( Note )		96,074
		$ 348,954

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

Li Peng Enterprise Co. Ltd.
List of accounts payable—related parties
Dec 31, 2025

List 17
Unit : NTD thousand

Vendor Name	Summary	Amount
LEALEA ENTERPRISE CO., LTD.	Payment for goods	$ 54,774
FU LI TRANSPORTATION CO., LTD.	''	2,888
LIBOLON (SHANGHAI) INTERNATIONAL TRADING CO., LTD.	''	65
		$ 56,668

Li Peng Enterprise Co. Ltd.
List of other current liabilities
Dec 31, 2025

List 18
Unit: NTD thousand

Item	Summary	Amount
Advance sales receipts		$ 178,317
Others (Note)		10,416
		$ 188,733

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

Li Peng Enterprise Co. Ltd.
List of long-term loan
Dec 31, 2025
List 19
Unit: NTD thousand

Creditor	Summary	Loan amount	Contract period	Interest (%)	Pledge or guarantee
Long-term bank loan
Chang Hwa Bank	Mortgage loan, monthly interest payment	$ 350,000	2025/12/24~2028/12/24	2.38800	Land and building
Bank of Taiwan	〃	725,000	2021/03/30~2028/03/30	2.21990	Land and plant
KGI Bank	Credit loan, monthly interest payment	500,000	2025/12/26~2027/12/01	2.20000	Nil
The Export-Import Bank of the Republic of China	Credit loan, monthly interest payment	90,000	2023/03/25~2028/03/25	2.38680	Nil
The Export-Import Bank of the Republic of China	〃	100,000	2025/09/22~2028/09/22	0.98520	Nil
Less: Long-term loan due in a year		1,765,000
		( 146,000)
		$ 1,619,000

Li Peng Enterprise Co. Ltd.
List of Long-term borrowings, current portion
Dec 31, 2025

List 20
Unit : NTD thousand

Item	Summary	Amount
Long-term loans due within one year	The Export-Import Bank of the Republic of China	$ 36,000
	Bank of Taiwan Branch	110,000
		$ 146,000

100

Li Peng Enterprise Co. Ltd.
List of operating income
2025

List 21
Unit : NTD thousand

Item	Quantity	Amount
Nylon chip	51,062 tons	$ 2,526,624
Weaving fabric	50,080 thousand yards	3,678,710
Nylon yarn	12,313 tons	1,038,468
Processing income	Note	488,573
Knitted fabric	255 tons	85,646
Dyed yarn	1,143 tons	366,255
Textured yarn	969 tons	77,108
Plastic masterbatch	570 tons	37,477
Others	Note	75,814
		$ 8,374,675

Note: A single subject includes products calculated in different units, and with disclosed amount.

Li Peng Enterprise Co. Ltd.
List of operating cost
2025

List 22
Unit : NTD thousand

Item	Amount
Raw material, beginning of the period	$ 625,445
Inventory in transit, beginning of the period	87,363
add : Procured material in the period	4,167,435
Other	4,773
less : Raw materials end of the period	( 608,481 )
Inventory in transit, end of the period	( 15,649 )
Sold raw materials	( 82,989 )
R&D materials	( 22,708 )
Turn to processing cost	( 30,324 )
Prepaid Equipment	( 2,937 )
Other	( 3,629 )
Direct raw materials	4,118,299
Direct labor	619,479
Manufacturing expense	2,651,331
less : Sale of nitrogen and electricity	( 61,216 )
Selling pallet cost	( 12,158 )
Other	( 8,367 )
Manufacturing cost	7,307,368
add: Processing goods, beginning of the period	834,304
Procured raw cloth in the period	691,565
Less: Processed goods, end of the period	( 731,155 )
R&D use	( 46,978 )
Turn to processing cost	( 2,910 )
Other	( 4,201 )
Finished goods cost	8,047,993
add : Finished goods, beginning of the period	996,997
Inventory in transit, beginning of the period	232,901
Procured raw yarn and dye cloth in the period	26,944
less : Finished good, end of the period	( 927,420 )
Inventory in transit, end of the period	( 133,110 )
R&D use	( 1,291 )
Turn to processing cost	( 433,311 )
Income of leftover tailings sales	( 12,581 )
Other	( 21,918 )
Impairment loss on inventory	27,634
add : Sale of nitrogen and electricity	144,206
Processing cost	466,544
Total operating cost	8,413,588
less : Processing cost discount	( 4,899 )
Net operating cost	$ 8,408,689

101

Li Peng Enterprise Co. Ltd.
List of sales expenses
2025

List 23
Unit : NTD thousand

Item	Summary	Amount
Freight		$ 124,948
Export		29,857
Sample		18,537
Others ( Note )		63,329
		$236,671

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

102

Li Peng Enterprise Co. Ltd.
List of management expenses
2025

List 24
Unit : NTD thousand

Item	Summary	Amount
Salary expense		$ 100,179
Lease expense		19,614
Insurance fees		11,877
Service Fees		9,787
Others (Note)		33,136
		$ 174,593

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

103

104

Li Peng Enterprise Co. Ltd.

List of research and development expenses

2025

List 25
Unit: NTD thousand

Item	Summary	Amount
Raw materials		$ 34,616
Processing cost		36,077
Salary expense		31,962
Others (Note)		20,242
		$ 122,897

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

Li Peng Enterprise Co. Ltd.

Employee benefits, depreciation, depletion and amortization expenses incurred in the current period 2025 and 2024

List 26

Unit : NTD thousand

	2025			2024
	Operating cost	Operating expense	Total	Operating cost	Operating expense	Total
Employee benefit expense
Salary expense	$ 679,326	$ 128,541	$ 807,867	$ 679,369	$ 144,329	$ 823,698
Labor and health insurance expense	77,171	12,996	90,167	72,994	12,741	85,735
Retirement benefit expense	23,726	6,325	30,051	24,482	6,373	30,855
Board's remuneration expense	-	3,600	3,600	-	3,600	3,600
Other employees' benefits	66,717	10,054	76,771	75,428	11,101	86,529
	$ 846,940	$ 161,516	$ 1,008,456	$ 852,273	$ 178,144	$ 1,030,417
Depreciation	$ 519,127	$ 7,342	$ 526,469	$ 568,705	$ 7,432	$ 576,137
Amortization	$ 67,849	$ 1,394	$ 69,243	$ 62,642	$ 3,112	$ 65,754

Note:
1. The number of employees for this year and the previous year were 1,288 and 1,295 respectively, of which 7 were directors who were not part-time employees.
2. (1) The average employee welfare expense for the year was NTD 784 thousand ("Total employee benefits for the year-total directors' remuneration" / "Number of employees for the Year-Number of directors who are not part-time employees").
The average employee welfare expense in the previous year is NTD 797 thousand ("Total employee benefits in the previous Year-Total directors' remuneration" / "Number of employees in the previous year-Number of directors who are not part-time employees").
(2) The average employee salary expense for the year is NTD 631 thousand (the total salary expense for the year / "the number of employees this year-the number of directors who are not part-time employees").
The average employee salary cost of the previous year is NTD 639 thousand (the total salary cost of the previous year / "the number of employees in the previous year-the number of directors who are not part-time employees").
(3) Changes in the average employee salary cost adjustment are (1.25)% ("Average employee salary cost of the current Year-Average employee salary cost of the previous year" / Average employee salary cost of the previous year).
3. The company has established an audit committee and has not appointed a supervisor, so there is no supervisor's remuneration.
4. The company's salary and remuneration policy is as follows:

(1) Board

According to Article 28 of the Articles of Association, the company shall allocate no more than 5% of the current pre-tax benefits prior to the deduction of remuneration for employees and directors in the current year as directors' remuneration. However, if there are accumulated losses, the compensation amount shall be reserved in advance, and then directors' remuneration shall be allocated in accordance with the aforementioned proportion.

(2) Manager

The salary level of the company's managers must be competitive in the same industry in order to attract outstanding talents and maintain outstanding performers internally. Managers' personal remuneration levels are differentiated based on their responsibilities and performance to encourage managers to assume their responsibilities and achieve KPI. Managers are responsible for operating performance, and incentives should take into account the company's long-term and short-term business performances.

(3) Employee

The overall salary of the company's employees is based on the principle of taking into account the average pay internally and the market competitiveness, including fixed salary and variable salary, and instant rewards to employees when achieving good operational results as to attract, motivate and retain talents. The total amount of employee remuneration is in accordance with the company's articles of association. The company's annual net profit before tax before deduction of employee remuneration and directors' remuneration shall be allocated at least 1% as employee remuneration. Employees' individual remuneration is based on their job responsibilities and professional skills, and bonuses are for rewarding their performance and contribution.

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LP — Audit Report / Information 2025

51810_rns_2026-05-19_8fbc79dd-8d17-4caa-a8db-8c214e031e0e.pdf

§TABLE OF CONTENTS§

Occurrence of sales revenue from specific customers of fabric products

Other Matter

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

Auditor's Responsibilities for the Audit of the Parent company only Financial Statements

LI PENG ENTERPRISE CORPORATION LIMITED

PARENT COMPANY ONLY BALANCE SHEETS

LI PENG ENTERPRISE CORPORATION LIMITED

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

LI PENG ENTERPRISE CORPORATION LIMITED

PARENT COMPANY ONLY STATEMENTS OF CHANGE IN EQUITY

LI PENG ENTERPRISE CORPORATION LIMITED

PARENT COMPANY ONLY 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) Foreign Currencies

(五) Inventories

(六) Investment Accounted for Using Equity Method

2. The Company as Lessee

(+ ∞) Borrowing Cost

(十五) Government Subsidies

(十六) Employee Benefits

(十七) Treasury Stock

(+ ∧) Income Tax

Current Income Tax

Deferred Income Tax

Current and Deferred Income Tax

五、Critical Accounting Judgments and Key Sources of Estimation and Uncertainty

六、Cash and Cash Equivalents

9. Inventories

10. Other financial assets - current

13. Property, Plant and Equipment

14. Lease Agreement

15. Investment Property

16. Other Intangible Assets

Cost

Accumulated amortization and impairment

17. Borrowing

19. Retirement Benefit Plans

a. Defined contribution plans

b. Defined benefit plans

20. Equity

a. Shares

Common share

b. Capital surplus

c. Retained earnings and dividend policy

23. Continuing operating business unit's income tax

Financial liabilities

f. Derivative financial products

g. Financial risk management objectives and policies

(2) Credit risk

(3) Liquidity risk

(a) Liquidity and interest rate risk table of non-derivative financial liabilities

28. Trading with Related Parties

32. Disclosed items in notes

Li Peng Enterprise Co. Ltd.

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LP Audit Report / Information 2025