LUNG MING — Audit Report / Information 2025

Apr 29, 2026

Stock code: 3018

Lung Ming Green Energy Technology Engineering Co., Ltd. and Subsidiaries Consolidated Financial Statements and the Independent Auditor’s Audit Report 2025 and 2024

(Unaudited of Financial Statements by Certified Public Accountant)

Company address: 3F, No. 602, Mingshui Road, Zhongshan District, Taipei City

Telephone: (02) 8501-5778

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Lung Ming Green Energy Technology Engineering Co., Ltd. and Subsidiaries

2025 and 2024 consolidated financial statements

Contents

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Item Page
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		Item	Page
I.	Cover	Page	1
II.	Contents		2
III.	Statement of Consolidated Financial Statements of Affiliated Enterprises		3
IV.	Independent Auditor’s Audit Report		4~8
V.	Consolidated Balance Sheet		9
VI.	Consolidated comprehensive income statement		10
VII.	Consolidated Statement of Changes in Shareholders’ Equity		11
VIII.	Consolidated Statement of Cash Flow		12~13
IX.	Notes	to the consolidated financial statements	14
	(I)	Company history	14
	(II)	Date and procedures for approval of the financial statements	14
	(III)	Application of newly issued and amended standards and	14~15
		interpretations
	(IV)	Summary of significant accounting policies	15~28
	(V)	Significant accounting judgments, estimations and major sources of	28~29
		assumption uncertainty
	(VI)	Notes to significant accounts	29~55
	(VII)	Related party transactions	55~56
	(VIII)	Pledged or mortgaged assets	56
	(IX)	Significant contingent liabilities and unrecognized commitments	56~63
	(X)	Significant losses from disasters	63
	(XI)	Significant events after the reporting period	63
	(XII)	Others	63~65
	(XIII)	Other disclosures in notes	65
		1. Information on material transactions	65
		2. Information on investee companies	65
		3. Information on investments in Mainland China	66
	(XIV)	Segment information	66

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Statement of Consolidated Financial Statements of Affiliated Enterprises

In 2025 (from January 1 to December 31, 2025), the Company is the same company as the company that should be included in the consolidated financial statements of the parent company and subsidiaries according to IFRS 10, and the relevant information to be disclosed in the consolidated financial statements of affiliated companies has been disclosed in the aforementioned consolidated financial statements. We do not separately prepare consolidated financial statements of affiliated companies.

I hereby declare.

Company name: Lung Ming Green Energy Technology Engineering Co., Ltd. Representative: Hsu, Chin-Lung Date: March 25, 2026

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Independent Auditor’s Audit Report

To Lung Ming Green Energy Technology Engineering Co., Ltd.:

Audit opinion

Lung Ming Green Energy Technology Engineering Co., Ltd. and Its Subsidiaries (hereinafter referred to as "Lung Ming Green Energy Group") the consolidated balance sheets as of December 31, 2025 and 2024, and the consolidated statements of comprehensive income from January 1 to December 31, 2025 and 2024. We have audited the statements of changes in equity and the consolidated statements of cash flows, and the notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, based on our audits and the audit reports of other accountants (please refer to the Other Matters paragraph), the consolidated financial statements are, in all material respects, prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the international financial reporting approved and issued into effect by the Financial Supervisory Commission of the Republic of China. International Accounting Standards, International Accounting Standards, Interpretations and Interpretations are prepared to fairly convey the consolidated financial position of Lung Ming Green Energy Group as of December 31, 2025 and 2024, and consolidated financial performance and consolidated cash flows for the periods January 1 to December 31, 2025 and 2024.

Basis for the audit opinion

We conducted the audit in accordance with the Regulations Governing the Audit of Financial Statements and Auditing Standards. Our responsibility to the standards will be explained in the paragraph of auditor’s responsibilities when auditing the consolidated financial statements. All relevant independent personnel subject to the CPA professional ethics within the firm remain independent from the Lung Ming Green Energy Group and implement responsibilities regulated in the ethics. Based on the results of our audit and the audit reports of other auditors, we believe we have obtained sufficient and appropriate audit evidence to serve as the basis for the audit opinion.

Emphasis of Matter

As described in Note 9(14) to the consolidated financial statements, Lung Ming Green Energy Technology Engineering Co., Ltd. had two bank promissory notes returned unpaid by financial institutions on the afternoon of June 27, 2025, in the amounts of NTD 86,640 thousand and NTD 108,300 thousand, respectively. The Company subsequently convened a board meeting to report and explain the matter. Our opinion is not modified in respect of this matter.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the Group for the year ended December 31, 2025. All relevant matters were audited during the audit of the consolidated financial statements and the formulation of the audit opinions. We will not express our opinions on those matters separately.

The key audit matters are described as below:

• I. Assessment to the loss allowance of receivables Matter description

• Please refer to item 8 of Note 4 of the consolidated financial statements for accounting policies regarding the impairment assessment of the accounts receivables; please refer to Note 5 for details on significant accounting estimates and assumptions; please refer to item 3 of Note 6 of the consolidated financial statements for descriptions of the accounts receivables.

• The assessment to the loss allowance of receivables is the best estimate made by the management for the possible default of the receivables that existed on the balance sheet date. The estimate involves of multiple assessments and forecasts of the management such as the past events, current circumstance, and future macroeconomic situations, and the measurement results will directly affect the recognition of relevant amounts. Therefore, we consider the estimate of the Company's loss allowance for receivables is the most important matter in the audit.

Corresponding audit process

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The audit procedures implemented by us to the aforesaid key audit matter included (but not limited to):

1. Understand and evaluate the Company's policy for the provision of allowance losses on accounts receivable (including the relevance of forward-looking information on macro economic indicators), and evaluate the rationality of the policy.

2. Assessed the receivables by referring to the probability of overdue credit losses in the past years, and set aside the loss allowance in accordance with the Company's policies. We understood and assessed the ratio of losses to overdue receivables in the past years and forward-looking information, to test and assess the appropriateness of the classification of receivable groups.

3. Sampled to inspect the adequacy of the supporting documents and the amount provided in cases at the management level.

4. Computed whether the loss allowance is provided based on the Company's policy.

5. II. Recognition of construction revenue - Assessment of the percentage of completion Matter description

6. Please refer to Note 4(18) of the consolidated financial statements for accounting policies regarding construction contracts; please refer to Note 5 of the consolidated financial statements for important judgments, accounting estimates, and assumptions with uncertainties related to the adoption of construction contract accounting policies; please refer to Note 6(21) of the consolidated financial statements for details on engineering contract revenue and related contract assets and liabilities. The construction revenue and costs of Lung Ming Green Energy Group are primarily generated from contracted projects. When the outcome of a construction contract can be reasonably estimated, revenue is recognized based on the percentage-of-completion method and calculated based on the degree of completion during the contract period. The degree of completion is determined by the costs incurred for each contract up to the end of the financial reporting period as a percentage of the estimated total costs of that contract. The estimate of the aforementioned total costs, including subcontracting, material, labor, and other project expenses, is based on management’s assessments of the varying nature of each project and fluctuations in market conditions.

As the estimated total cost affects the degree of completion and the recognition of revenue from projects, and the overall project cost items are complex, often involving subjective judgments, resulting in high uncertainty, so our assessment regarded the degree of completion used in the recognition of revenue from project as one of the key matter for the audit.

Corresponding audit process

The audit procedures implemented by us to the aforesaid key audit matter included (but not limited to):

1. Evaluate the reasonableness of the internal operating procedures used to estimate the total cost of a project based on the understanding of its operation and the nature of the industry, including the basis for estimating the total cost of a construction contract of the same nature.

2. Assessed and tested the management's internal control procedures for recognizing revenue from project based on the degree of completion, including checking supporting documents for works added or reduced and major projects priced in the current period.

3. Randomly check the part of the contracts that have been awarded, and evaluate the basis and reasonableness of the estimated cost for the part that has not yet been awarded.

4. Conducted relevant verification procedures for the income statement of the project at the end of the period, including sampling the incurred costs of the current period to appropriate certificates, and recalculating the revenue from project recognized based on the degree of completion, and it has been properly recorded.

5. III. Assessment of the going concern ability

Matter description

Lung Ming Green Energy Group is currently involved in ongoing litigation, as described in Note 9 to the consolidated financial statements. The potential adverse outcomes of these unresolved cases may exceed the Group’s financial capacity. As mentioned in Note 12(2) to the financial statements, the management has successively adopted necessary measures to ensure that Lung Ming Green Energy Group can continue to operate in the future and gradually improve its situation. Since the feasibility of the contingency plan proposed by the management to improve the financial condition and financial

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performance involves subjective judgment, the accountant's assessment of the going concern is listed as the most important audit item.

Corresponding audit process

The audit procedures implemented by us to the aforesaid key audit matter included (but not limited to):

1. Discuss with the management the events or situations that affect the assumption of the Company's continuing operations and the corresponding plans.

2. Evaluate the feasibility of the management's response plan and the effect of improving the financial position.

3. Obtaining the management's financial budget for the next year, future cash flows, profits and other relevant information, and asking the management's basic assumptions and examining the reasonableness of the relevant supporting information.

4. Inquire the management and review the audit evidence related to the audits in the post-period to assess whether there are matters that affect the Company's ability to continue as a going concern.

5. Inquire about borrowings and other debt contracts, review the Company's past debt repayment status, and assess whether there is any doubt about its future solvency.

6. Obtaining the investor's financial support commitment and reviewing the relevant evidence that the investment funds are in place, and assessing the effectiveness and feasibility of the financial support provided.

7. Assess whether there is any doubt about the Company's ability to fulfill customer contracts.

8. Inquire the minutes of the Board of Directors, shareholders' meetings and other important meetings, and evaluate whether there are unknown and possible lawsuits that are not conducive to the continued operation of the Company.

9. Issue letters to the Company's external lawyers and relevant units to obtain the latest progress of important legal matters such as major known pending litigations, to assess whether there is a possibility of an outcome unfavorable to the Company's continued operation.

10. Obtain and review the declaration issued by the management authority on the response plan and its feasibility.

11. Evaluate the appropriateness of the disclosures made by the management in the notes to the financial statements.

Other matters

We did not audit the financial statements of investee companies, presented as investment accounted for using the equity method in the consolidated financial statements for 2024. Those financial statements were audited by other independent auditors. The opinions expressed in the consolidated financial statements for 2024 regarding the share of the profit or loss of the investment accounted for using the equity method were based on the audit reports of other independent auditors. On December 31, 2024, the investment in the aforesaid investee company under the equity method was NTD 14,318 thousand, accounting for 0.87% of the total assets of the parent company. From January 1 to December 31, 2024, the share of loss recognized under the equity method was NTD (350) thousand, accounting for 0.34% of the consolidated net loss before tax.

Lung Ming Green Energy Technology Engineering Co., Ltd. has prepared the unconsolidated financial statements for the years ended December 31, 2025 and 2024, to which we have issued an unqualified opinion and the paragraphs on other matters and an unqualified opinion on other matters, respectively, for reference. The responsibility of the management and the governing body for the consolidated financial statements

The management is responsible for preparing the appropriate consolidated financial statements in accordance with Regulations Governing the Preparation of Financial Reports by Securities Firms, the International Financial Reporting Standards approved by the Financial Supervisory Commission, the International Accounting Standards and interpretations thereof. Additionally, it is responsible for maintaining the internal control mechanism that is related to and necessary for the preparation of the consolidated financial statements. As a result, it can ensure material misstatement due to fraud or error is not pertained in the consolidated financial statements.

Other than the situation that the management intends to liquidate Lung Ming Green Energy Group or stop the business, or no other approaches can be used except for these two measures, during the preparation

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of the consolidated financial statements, the responsibility of the management also includes evaluating the going concern capacity of the Lung Ming Green Energy Group, disclosure of relative matters, and adoption of the going concern accounting basis.

The governing body of the Lung Ming Green Energy Group (including the Audit Committee) has the responsibility to supervise the financial reporting procedures.

Our responsibility for the audit of the consolidated financial statements

The purpose for us to audit the consolidated financial statements is to obtain reasonable assurance that there is no material misstatement due to fraud or error in the consolidated financial statements, and we issue the audit report afterwards. Reasonable assurance means high assurance. Only that the audit work implemented in accordance with the auditing standards cannot give the promise that every material misstatement in the consolidated financial statements are found. Misstatement might result from fraud or error. If we can reasonably expect the individual amounts or the total amount in the misstatement would influence the financial decision made by the user of the consolidated financial statements, the misstatement is considered material.

We exercised professional judgment and maintained professional skepticism in conducting our audit in accordance with auditing standards. We also perform the following work:

1. We identify the material misstatement resulting from fraud or error in the consolidated financial statement and assess its risk. We design and implement appropriate corresponding measures for the assessed risk. We acquire sufficient and appropriate audit evidence to serve as the basis for the audit opinion.

2. Due to the fact that fraud might include collusion, forgery, intended omission, misstatement and violation of internal control, the risk of the misstatement resulting from fraud is higher than that resulting from error.

3. We acquire necessary understanding of the internal control mechanism that is related to the audit to design appropriate audit process for the situation at the time. The purpose of the knowledge is not expressing opinions to the effectiveness of the internal control mechanism of the Lung Ming Green Energy Group.

4. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by made by management.

5. Based on the acquired audit evidence, we decide whether the going concern accounting basis adopted by the management is suitable, whether events that might affect the going concern capacity of Lung Ming Green Energy Group exist, and whether there is major uncertainty. A conclusion will be made afterwards. We believe under the circumstances that there is major uncertainty, a reminder shall be included in the audit report to inform the consolidated financial statements user to pay attention to relative disclosures in the statements. We shall modify the audit opinion when the disclosure is considered improper. Our conclusion is based on the audit evidence acquired as of the date of the audit report. Future events or circumstances might still result in the fact that Lung Ming Green Energy Group no longer has the going concern capacity.

6. We evaluate the overall statements, structures and contents of the consolidated financial statements (including relative notes) and see whether the statements appropriately state relevant transactions and events.

7. We examine the financial information of individual companies within the Group to acquire sufficient and appropriate audit evidence for expressing opinions in the consolidated financial statements. We are responsible to guide, supervise and implement the audit for the Company. In addition, we are responsible for the formulation of opinions for the Company.

We communicate with the governing body on the scope and time of the audit as well as the significant findings (including significant deficiencies of the internal control mechanism identified during the audit process).

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.

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From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements for the year ended December 31, 2025 and are therefore the key audit matters. We clearly state all above matters in the audit report, unless the law prohibits us to publicly disclose certain matters, or under rare circumstances we decide not to include certain matters in the audit report since we can reasonably expect the resulting negative impact is greater than the public interest they bring.

Crown & Co., CPAs

CPA ： Jinn Der Chang

CPA ： Yu Jhih Li

No. of Approval Document by the Competent Authority Letter (79)Tai-Cai-Zheng-(I) No.00351 Jin-Guan-Zheng-Shen-Zi No. 1030033359 March 25, 2026

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Lung Ming Green Energy Technology Engineering Co., Ltd. and Subsidiaries

Consolidated Balance Sheet

December 31 of 2025 and 2024

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Unit: NTD thousand
December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024
Assets Amount % Amount % Liabilities and equity Amount % Amount %
Current assets Current liabilities
1100 Cash and cash equivalent (Note 4 and 6) $ 122,331 10 $ 113,225 7 2100 Short-term loans (Note 4, 6, and 8) $ 72,751 6 $ 148,537 9
1110 Financial assets measured at fair values through profit or loss - Current 911 - 1,978 - 2130 Contract liabilities - current (Notes 4 and 6) 200,572 17 125,746 8
(Note 4 and 6) 2150 Notes payable (Note 4 and 6) 9,073 1 7,660 1
1136 Financial assets measured at amortized cost - Current 180,330 14 209,131 12 2170 Accounts payable (Note 4 and 6) 241,951 20 231,513 14
(Notes 4, 6 and 8) 2180 Accounts payable - related parties (Notes 4, 6 and 7) - - 16,219 1
1140 Contract assets - Current (Note 4 and 6) 371,105 30 435,013 26 2200 Other payables (Note 4 and 6) 27,279 2 41,691 2
1170 Accounts receivable - Net (Note 4 and 6) 36,539 3 - - 2220 Other payables - related parties (Notes 4, 6 and 7) 51,305 4 50,106 3
1200 Other receivables (Notes 4 and 6) 69,386 6 69,084 4 2250 Provisions - current (Notes 4 and 6) 64,032 5 53,818 3
1210 Other receivables - related parties (Notes 4, 6 and 7) - - 853 - 2280 Lease liabilities - current (Notes 4 and 6) 9,565 - 4,307 -
1220 Current income tax assets (Note 4 and 6) 216 - 156 - 2322 Long-term borrowings due within one year or one operating cycle (4, 6 and 8) - - 15,000 1
1310 Inventories (Note 4 and 6) - - - - 2399 Other current liabilities 1,150 - 2,988 -
1410 Prepayments (Notes 6 and 7) 193,249 15 136,534 8 21XX Total of current liabilities 677,678 55 697,585 42
1460 Non-current assets or disposal groups classified as held for sale, net 10,991 1 10,991 1 Non-current liabilities
(Notes 4 and 6)
1470 Other current assets 161 - 160 - 2540 Long-term borrowings (4, 6, and 8) - - 225,000 14
1478 Guarantee deposits paid (Note 6) 1,914 - 7,867 1 2550 Provisions - non-current (Notes 4 and 6) - - 13,410 1
11XX Total of Current Assets 987,133 79 984,992 59 2570 Deferred income tax liabilities (Notes 4 and 6) - - 271 -
Non-current assets 2580 Lease liabilities, non-current (Notes 4 and 6) 5,900 - 4,337 -
1517 Financial assets at fair value through other comprehensive income 3,153 - - - 2640 Net defined benefit liabilities - non-current (Notes 4 and 6) 1,898 - 2,631 -
- non-current (Notes 4 and 6) 2645 Deposits received (Note 6) 2,997 - 2,997 -
1535 Financial assets measured at amortized cost (Notes 4, 6 and 8) 13,700 1 - - 25XX Total of non-current liabilities 10,795 - 248,646 15
1550 Investments accounted using the equity method (Note 4 and 6) 13,818 1 14,318 1 2XXX Total liabilities 688,473 55 946,231 57
1600 Property, plant and equipment (Note 4, 6, and 8) 17,460 2 19,496 1 Equity attributable to the owners of the parent company (Note 6)
1755 Right-of-use assets (Note 4 and 6) 15,303 1 8,573 1 3110 Common stock share capital 753,777 60 730,736 44
1760 Investment property (Notes 4, 6 and 8) - - 451,000 27 3200 Capital reserve 6,959 1 66,380 4
1780 Intangible assets (Note 4 and 6) - - 15 - 3300 Retained earnings
1840 Deferred income tax assets (Note 4 and 6) 156,067 12 135,128 8 3350 Accumulated deficit (181,505) (14) (449,962) (27)
1920 Guarantee deposits paid (Notes 6 and 9) 44,039 4 21,651 2 3400 Other equity (17,031) (2) 361,288 22
1960 Prepaid investment (Note 6) - - 19,500 1 31XX Total equity of the parent company 562,200 45 708,442 43
15XX Total of Non-Current Assets 263,540 21 669,681 41 3XXX Total equity 562,200 45 708,442 43
1XXX Total assets $ 1,250,673 100 $ 1,654,673 100 Total liabilities and equity $ 1,250,673 100 $ 1,654,673 100
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(Please refer to the notes to the consolidated financial statements)

Chairman: Manager: Accounting Officer:

Disposal of investment property

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Lung Ming Green Energy Technology Engineering Co., Ltd. and Subsidiaries Consolidated comprehensive income statement For the Years Ended December 31, 2025 and 2024

Unit: NTD thousand

4000 Net operating income (Note 4, 6, and 7) 5000 Operating costs (Note 4 and 6) 5900 Gross profit (loss) 6000 Operating expenses (Note 4, 6, and 7) 6200 Management expense 6450 Expected credit impairment (loss) benefit 6000 Total operating expenses 6900 Net operating profit (loss) Non-operating income and expenses (Note 4, 6, and 7) 7100 Interest income 7010 Other revenue 7020 Other profits and losses 7050 Financial cost 7055 Expected loss from credit impairment 7060 Shareholding in the profit or loss of the affiliated company under the equity method 7000 Total of non-operating income and expenses 7900 Net income (loss) before tax 7950 Income tax benefits (Notes 4 and 6) 8200 Net income (loss) Other comprehensive income (Notes 4 and 6): 8310 Titles not reclassified into income 8311 Re-measurement of defined benefit plan 8312 Revaluation increments of property, plant, and equipment 8316 Unrealized gain (loss) from investments in equity instruments measured at fair value through other consolidated income or loss 8349 Less: Income taxes related to items not subject to reclassification Components of other comprehensive income that will not be reclassified to profit or loss 8360 Titles potentially reclassified into income subsequently 8361 D Components of other comprehensive income that will be reclassified to profit or loss 8300 Other consolidated income (loss) - Net 8500 Total comprehensive income 8600 Net (loss) attributable to (Note 6) 8610 Parent company shareholders 8700 Consolidated income or loss attributable to 8710 Parent company shareholders Loss per share (TWD) 9750 Basic loss per share 9850 Diluted loss per share Exchange difference in the financial statements of foreign operations	Amount 462,654 $ (496,847) (34,193) (106,576) (44,869) (151,445) (185,638) 1,297 29,970 1,345 (19,265) (6,699) (500) 6,148 (179,490) 19,169 (160,321) 586 - (16,347) (117) (15,878) (43) (43) (15,921) (176,242) $ (160,321) $ (176,242) $ (2.16) $ (2.16) $ 2025	% 100 (107) (7) (22) (10) (32) (39) - 6 - (4) (1) - 1 (39) 4 (35) - - (4) - (4) - - (4) (39) (34) (116)	Amount 851,422 $ (780,009) 71,413 (102,306) 329 (101,977) (30,564) 1,270 28,957 (74,959) (21,808) - (4,658) (71,198) (101,762) 8,399 (93,363) (680) 362,200 - (135) 361,385 6 6 361,391 268,028 $ (93,363) $ 268,028 $ (1.46) $ (1.46) $ 2024	% 100 (92) 8 (12) - (12) (4) - 3 (9) (2) - - (8) (12) 1 (11) - 42 - - 42 - - 42 31 (11) 31

(Please refer to the notes to the consolidated financial statements)

Chairman:

Manager:

Accounting Officer:

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Lung Ming Green Energy Technology Engineering Co., Ltd. and Subsidiaries

Consolidated Statement of Changes in Shareholders’ Equity

For the Years Ended December 31, 2025 and 2024

Unit: NTD thousand

Equity attributable to the owners of the parent company

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Other equities
Unrealized gain (loss) of the Revaluation
Exchange difference in financial assets measured at increments of
the financial statements fair values through other property, plant, and
Common stock share cap Capital reserve Accumulated deficit of foreign operations consolidated income or loss equipment Total equities
A1 Balance as at 1 January 2024 $ 513,736 $ 85,217 $ (441,272) $ 678 $ (1,325) $ - $ 157,034
Additional paid-in capital used to
C11 make up loss - (85,217) 85,217 - - - -
D1 Net income (loss) - - (93,363) - - - (93,363)
D3 Other consolidated income (loss) - - (544) 6 - 361,929 361,391
D5 Total consolidated income (loss) - - (93,907) 6 - 361,929 268,028
E1 Capital increase in cash 217,000 66,380 - - - - 283,380
Z1 Balance as at 31 December 2024 $ 730,736 $ 66,380 $ (449,962) $ 684 $ (1,325) $ 361,929 $ 708,442
A1 Balance as at 1 January 2025 $ 730,736 $ 66,380 $ (449,962) $ 684 $ (1,325) $ 361,929 $ 708,442
Additional paid-in capital used to
C11 make up loss - (66,380) 66,380 - - - -
D1 Net income (loss) - - (160,321) - - - (160,321)
D3 Other consolidated income (loss) - - 469 (43) (16,347) - (15,921)
D5 Total consolidated income (loss) - - (159,852) (43) (16,347) - (176,242)
E1 Capital increase in cash 23,041 6,959 - - - - 30,000
T1 Disposal of investment property - - 361,929 - - (361,929) -
Z1 Balance as at 31 December 2025 $ 753,777 $ 6,959 $ (181,505) $ 641 $ (17,672) $ - $ 562,200
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(Please refer to the notes to the consolidated financial statements)

Chairman: Manager: Accounting Officer:

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Lung Ming Green Energy Technology Engineering Co., Ltd. and Subsidiaries Consolidated Statement of Cash Flow

For the Years Ended December 31, 2025 and 2024

AAAA Cash flow from operating activities: A10000 Net income (loss) before tax A20010 Income/expenses: A20100 Depreciation expense A20200 Amortization expense A20300 Expected credit impairment loss (gain) A20400 A20900 Financial cost A21200 Interest income A22300 Share of losses of associates accounted for using the equity method A22500 Disposal of property, plant, and equipment A22700 Gain on disposal of investment property A24600 Gain from fair value adjustment of investment property A29900 Disposal of subsidiaries accounted for using the equity method A29900 Losses on lease modifications A29900 A30000 Changes in assets/liabilities related to operating activities - Net A31125 Contract assets A31150 Accounts receivable A31180 Other receivable A31190 Other receivable accounts-related party A31230 Prepayments A31240 Other current assets A31990 Guarantee deposits paid A32125 Contract liabilities A32130 Notes payable A32150 Accounts payable A32160 Account payables-related parties A32180 Other payable A32200 Reserve for liabilities A32230 Other current liabilities A32240 Net defined benefit liability A33000 Cash inflow (outflow) from operations A33100 Interest received A33300 Interest paid A33500 Income tax paid AAAA Net cash inflow (outflow) from operating activities Designated reserve for liabilities Net loss of financial assets and liabilities measured at fair value through profit or loss (To be continued)	2025 (179,490) $ 12,880 15 51,568 245 19,265 (1,297) 500 (111) (54,221) (14,000) - - 18,787 19,039 (36,539) (7,050) 853 (56,715) (1) 5,953 74,826 1,413 10,438 (16,219) (13,761) (21,983) (1,838) (147) (187,590) 1,346 (19,916) (2,218) (208,378)	Unit: NTD thousand 2024 (101,762) $ 21,080 490 (329) 185 21,808 (1,270) 4,658 (2,381) - - 3,180 15 29,117 62,020 87,246 (34,179) (853) (76,383) (5) (150) 26,484 (27,550) (29,362) 16,219 15,352 (2,788) (80) (516) 10,246 1,218 (21,612) (105) (10,253)

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Lung Ming Green Energy Technology Engineering Co., Ltd. and Subsidiaries Consolidated Statement of Cash Flow

For the Years Ended December 31, 2025 and 2024

BBBB Cash flow from investing activities: B00040 Disposal of financial assets measured at fair values through profit or loss B00050 Acquired financial assets measured at amortized cost B00050 Disposal of financial assets measured at amortized cost B02000 Prepaid investment B02700 Acquisition of property, plant, and equipment B02800 Disposal of property, plant, and equipment B03700 Increase in guaranteed deposits paid B03800 Decrease in guarantee deposits paid B05500 Disposal of investment property BBBB Net cash inflow from investing activities CCCC Cash flow from financing activities: C00100 Increase in short-term loans C00200 Decrease in short-term loans C01600 Borrowing of long-term loan C01700 Retirement of long-term loans C03100 Decrease in guarantee deposits received C03700 C03800 C04020 Lease principal payment C04600 Capital increase in cash CCCC Net cash inflow (outflow) from financing activities DDDD Effect of exchange rate fluctuation on cash and cash equivalents EEEE Increase of current cash and cash equivalent E00100 Opening balance of cash and cash equivalents E00200 Closing balance of cash and cash equivalents Increase in other payables - Related parties (Continued from previous page) Decrease in other payables - related parties	2025	Unit: NTD thousand 2024
	822 - 15,101 - (644) 111 (23,594) 1,206 519,221 512,223 181,718 (257,504) - (240,000) - 1,199 - (10,109) 30,000 (294,696) (43) 9,106 113,225 122,331 $	- (142,605) - (19,500) (1,154) 2,381 (6,357) 5,382 - (161,853) 140,085 (54,948) 240,000 (232,660) (169) - (225,538) (9,020) 283,380 141,130 (356) (31,332) 144,557 113,225 $

(Please refer to the notes to the consolidated financial statements)

Chairman: Manager: Accounting officer:

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Lung Ming Green Energy Technology Engineering Co., Ltd. and Subsidiaries Notes to the consolidated financial statements

2025 and 2024

Unit: NTD thousand (unless otherwise specified)

I. Company history

The Company formerly known as "Tung Kai Technology Engineering Co., Ltd." was established in January 1996, and in 1998, the shareholders' meeting resolved to set May 1, 1998 as the base date for the merger with Yongsheng Engineering Co., Ltd., with the Company as the surviving company, and Yong Sheng Engineering Co., Ltd. as the extinguished company. This merger has been approved by the competent authority. The Company was renamed Lung Ming Green Energy Technology Engineering Co., Ltd. in June 2022.

The Company and its subsidiaries (hereinafter referred to as the "consolidated company") are principally engaged in the integration of mechanical and electrical systems, construction projects and waste disposal related to technology plants, industrial plants and residences. The Company's shares have been listed on the Taiwan Stock Exchange since August 26, 2002. Its place of registration and main business location is 3F, No. 602, Mingshui Road, Zhongshan District, Taipei City.

The consolidated financial statements are presented in New Taiwan Dollar, which is the Company's functional currency.

II. Date and procedures for approval of the financial statements

This consolidated financial statement was approved by the Board of Directors on March 25, 2026.

III. Application of newly issued and amended standards and interpretations

• (I) The initial application of the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), and Interpretations (IFRIC) endorsed and issued into effect by the Financial Supervisory Commission (hereinafter referred to as the "FSC") and SIC Interpretations (SIC) (hereinafter referred to as "IFRS Accounting Standards").

The application of IFRS Accounting Standards endorsed and issued into effect by the Financial Supervisory Commission is not expected to result in any significant changes to the consolidated company’s accounting policies.

• (II) IFRS accounting standards recognized by the FSC applicable in 2026

• The new / amended / revised standards or interpretation Effective Date per IASB

• Amendments to IFRS 9 and IFRS 7 "Classification and January 01, 2026 measurement of Financial Instruments" Amendments to IFRS 9 and IFRS 7 "Contracts Referencing January 01, 2026 Nature-dependent Electricity" Annual Improvements to IFRS Accounting Standards – Volume 11 January 01, 2026

• (III) IFRS Accounting Standards issued by the International Accounting Standards Board (IASB) but not yet endorsed and issued into effect by the Financial Supervisory Commission (FSC)

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The new / amended / revised standards or interpretation Effective Date per IASB Amendment to IFRSs 10 and IAS 28 “The Assets Sales or Purchase To be determined between Investors and Their Affiliates or Joint Ventures” IFRS 18 "Presentation and Disclosure in Financial Statements" January 1, 2027 (Note)

• Note: On September 25, 2025, the Financial Supervisory Commission announced that companies in Taiwan shall apply IFRS 18 starting from January 1, 2028, and may elect early adoption after IFRS 18 is endorsed by the Financial Supervisory Commission.

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

IFRS 18 will supersede IAS 1 “Presentation of Financial Statements” and the main changes include:

1. Items of income and expenses included in the income statement shall be classified into operating, investing, financing, income tax, and discontinued operations categories.

2. The income statement shall present subtotals and totals for operating profit or loss, profit or loss before financing and income tax, and profit or loss.

3. Provides guidance to enhance the requirements of aggregation and disaggregation: The Consolidated Company shall identify the assets, liabilities, equity, income, expenses, and cash flows that arise from individual transactions or other events and classify and aggregate them into groups based on shared characteristics, so as to result in the presentation in the primary financial statements of line items that have at least one similar characteristic. Items with dissimilar characteristics shall be disaggregated in the primary financial statements and in the notes. The Consolidated Company labels items as “other” only if it cannot find a more informative label.

In addition, IAS 7 Statement of Cash Flows has been consequentially amended. When preparing cash flows from operating activities using the indirect method, the consolidated company is required to use operating profit or loss as the starting point for reconciliation. As of the publication date of these consolidated financial statements, the consolidated company continues to evaluate the impact of other standards and amendments to interpretations on the financial position and financial performance. The relevant impact will be disclosed when the evaluation is completed.

IV. Summary of significant accounting policies

• (I) Statement of Compliance

• The consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations endorsed and issued into effect by the FSC.

• (II) Basis of Preparation

Except for the financial instruments measured at fair value, the financial instruments are prepared in accordance with the historical cost.

The fair value is divided into Level 1 to Level 3 according to the observable degree and

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importance of the relevant input value:

1. Level 1 input: refers to the quoted price (unadjusted) of the same asset or liability available in the active market on the measurement date.

2. Level 2 inputs: Inputs other than quoted prices in Level 1 that are observable for assets or liabilities, either directly (i.e. prices) or indirectly (derived from prices).

3. Level 3 inputs are unobservable inputs for the asset or liability.

(III) Classification of current and non-current assets and liabilities Current assets include:

1. Assets held mainly for the purpose of trading;

2. Assets expected to be realized within 12 months after the balance sheet date; and

3. Cash and cash equivalents (excluding those restricted from being exchanged or used to settle a liability for at least 12 months after the balance sheet date).

4. Current liabilities include:

5. Liabilities held primarily for the purpose of trading;

6. Liabilities due to be settled within 12 months after the balance sheet date; and

7. Liabilities for which there is no unconditional right at the balance sheet date to defer settlement for at least 12 months after the balance sheet date.

Assets or current liabilities that are not classified as above are classified as non-current assets or non-current liabilities.

(IV) Basis for consolidation

• The consolidated financial statements include the financial statements of the Company and the entities (subsidiaries) controlled by the Company. The financial statements of subsidiaries have been adjusted to make their accounting policies consistent with those of the consolidated company. In preparing the consolidated financial statements, all intragroup transactions, account balances, income, and expenses have been eliminated. The total comprehensive income of the subsidiaries is attributable to the owners of the Company and the non-controlling interests, even if the non-controlling interests have a deficit balance. Changes in the consolidated company's ownership interests in subsidiaries that do not result in a loss of control are accounted for as equity transactions. The carrying amounts of the consolidated company and the non-controlling interests have been adjusted to reflect the changes in their relative interests in the subsidiaries. The difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to the owners of the Company.

Please refer to Note 6(8) and Table 5 for details of subsidiaries, shareholding ratio and business items.

• (V) Cash and cash equivalent

Cash and cash equivalents include cash on hand, demand deposits, and short-term, highly liquid time deposits or investments that are readily convertible to known amounts of cash with an insignificant risk of changes in value.

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(VI) Transactions in foreign currencies

1. Transactions in foreign currencies Foreign currency transactions are converted into the functional currency using exchange rates on the date of transaction. Monetary items denominated in foreign currencies on the reporting date (referred to as the reporting date) are converted into the functional currency in accordance with the exchange rates prevailing on the reporting date. The exchange difference is recognized in profit or loss for the period. The foreign currency non-monetary item measured at fair value is translated at the exchange rate on the date when the fair value is determined, and the exchange difference generated is recognized in profit or loss of the year. However, for the change in fair value recognized in other comprehensive income, the exchange difference generated is recognized in the profit or loss of the year. Non-monetary items denominated in foreign currencies measured at historical cost will not be retranslated.

2. Foreign operations The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisitions, are converted in accordance with the exchange rate on the reporting date. The currency in which the consolidated financial statements are expressed is converted according to the current average exchange rate, and the resulting exchange difference is recognized in other comprehensive income. When the disposal of a foreign operation causing a loss of control, loss of joint control, or significant influence, the cumulative exchange difference related to the foreign operation is entirely reclassified as profit or loss. If the disposal involves any subsidiary of the foreign operations, the relevant accumulated exchange difference shall be reclassified into the non-controlling interests on a pro rata basis. When the partial disposal includes investments in affiliates of foreign operations, the relevant accumulated exchange differences are reclassified to profit or loss on a pro rata basis. If no repayment program is defined with respect to monetary item receivable or payable of the foreign operations and it is impossible to settle in the foreseeable future, the foreign currency exchange gain or loss generated therefor shall be held as a part of the net investment of the foreign operations and recognized as other comprehensive profit or loss.

(VII) Conversion of financial statements in foreign currencies

• In preparing the consolidated financial statements, the assets and liabilities of foreign operations are converted into NTD at the closing exchange rate on the balance sheet date, and the income and expense items are converted at the average exchange rate for the period. The exchange differences arising from the conversion are recognized as other comprehensive gains and losses, and when the foreign operating institution is disposed of, the accumulated exchange differences previously recognized as other comprehensive gains and losses and accumulated in equity is recognized as disposition, reclassified from equity to profit or loss. Part of the disposition involving the loss of control over a

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subsidiary including a foreign operation, and the partial disposition of an affiliated enterprise including a foreign operation or the interests in a joint agreement, where the retained interest is a financial asset that includes a foreign operation is also handled as disposal.

When the part of the disposal of a subsidiary of a foreign operation is not lost, the accumulated exchange differences recognized in other comprehensive income are reattributable to the non-controlling interests of the foreign operation on a pro rata basis, and not recognized in profit or loss. When the Company has not lost significant influence or joint control, and is partially disposed of with affiliates including foreign operating institutions or joint agreements, the accumulated exchange differences are reclassified to profit or loss on a pro rata basis.

(VIII) Financial instruments

Financial assets and financial liabilities shall be recognized in the consolidated balance sheet when the consolidated company becomes a party to the contractual terms of financial instrument.

When financial assets and financial liabilities are initially recognized, if the financial assets or financial liabilities are not measured at fair value through profit or loss, they are measured at the fair value plus transaction costs that are directly attributable to the acquisition or issuance of financial assets or financial liabilities. Transaction costs directly attributable to the acquisition or issuance of financial assets or financial liabilities measured at fair value through profit or loss are immediately recognized in profit or loss.

1. Financial assets

Conventional transactions of financial assets are recognized and derecognized using trade date accounting.

• (1) Measurement types

The types of financial assets held by the consolidated company are financial assets measured at fair value through profit or loss and financial assets measured at amortized cost.

• A. Financial assets at fair value through profit or loss

• Financial assets at fair value through profit or loss include receivables and financial assets mandatorily measured at fair value through profit or loss. Financial assets mandatorily measured at fair value through profit or loss include equity instrument investments that are not designated as measured at fair value through other comprehensive income and debt instrument investments that are not classified as investments measured at amortized cost or measured at fair value through other comprehensive income or loss. Financial assets at fair value through profit or loss are measured at fair value, and the dividends and interest generated are recognized in other income and interest revenue, respectively, and gains or losses generated from remeasurement are recognized in other profits and losses.

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• B. Financial assets measured at amortized cost

• If the investment in financial assets of the consolidated company meets the following two conditions at the same time, they are classified as financial assets measured at amortized cost:

• a. It is held under a certain business model, and the purpose of the model is to hold financial assets in order to collect contractual cash flows; and

• b. The cash flow on a specific date arising from the terms of the contract, and such cash flow is solely for the payment of the principal and the interest on the amount of the outstanding principal.

• Financial assets measured at amortized cost (including cash and cash equivalents, notes receivable measured at amortized cost, accounts receivable, and other receivables) are determined using the effective interest method after initial recognition The carrying amount of the Company less any impairment loss is measured at amortized cost, and any foreign currency exchange gain or loss is recognized in profit or loss.

Except for the following two situations, interest income is calculated by multiplying the effective interest rate by the total carrying amount of a financial asset:

• a. For purchased or originated credit-impaired financial assets, interest revenue is calculated by multiplying the credit-adjusted effective interest rate by the amortized cost of the financial asset.

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

Equivalent cash includes time deposits and short-term bills that are highly liquid and readily convertible into a fixed amount of cash at any time with little risk of value changes within three months from the date of acquisition, which are used to meet short-term cash commitments.

• C. Equity instrument investment measured at fair value through other comprehensive profit or loss

• The consolidated company may, at initial recognition, make an irrevocable election to designate at the fair value through other comprehensive income the investments in equity instruments that are not held for trading and are not recognized by an acquirer in a business combination.

Investments in equity instruments at fair value through other comprehensive income are measured at fair value. Subsequent changes in fair value are recognized in other comprehensive income and accumulated in other comprehensive income. When the investment is disposed, the accumulated profit or loss is directly transferred to the retained earnings and is not

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reclassified as profit or loss.

Dividends of investments in equity instruments measured at FVTOCI are recognized in profit or loss when the Company's right to receive payment is established, unless such dividends clearly represent the recovery of part of the investment cost.

• (2) Impairment of financial assets

The consolidated company assesses the impairment loss of financial assets measured at amortized cost (including accounts receivable) based on the expected credit loss at each balance sheet date.

The loss allowance for accounts receivable is based on the lifetime expected credit losses. For other financial assets, we first assess whether there is a significant increase in credit risk since the initial recognition. If there is no significant increase, an allowance for loss is recognized at an amount equal to 12-month expected credit losses.

The expected credit loss is the weighted average credit loss with the risk of default as the weight. The 12-month expected credit loss represents the expected credit loss generated by the possible default of the financial instrument within 12 months after the reporting date, and the lifetime expected credit loss represents the expected credit loss generated by all possible defaults of the financial instrument during the expected lifetime of the financial instrument. loss. The impairment loss of all financial assets is reduced to the carrying amount through the allowance account. However, the allowance for loss of investment in debt instruments measured at FVTOCI is recognized in other comprehensive income without reducing the carrying amount.

• (3) Removal of financial assets

The consolidated company derecognizes a financial asset only when the contractual rights to the cash flows from the financial asset expire, or when the financial asset is transferred with substantially all risks and rewards of ownership of the asset transferred to another party.

On derecognition of a financial asset at amortized cost in its entirety, the difference between the carrying amount and the consideration received is recognized in profit or loss. When an investment in an equity instrument at FVTOCI is derecognized in its entirety, the accumulated profit or loss is directly transferred to retained earnings and is not reclassified as profit or loss.

1. Equity instruments

The equity instruments issued by the consolidated company are recognized based on the amount of the acquired price with deduction of the direct issuance cost. The repurchase of the Company's own equity instruments is recognized in and deducted under equity. The purchase, sale, issuance or cancellation of the Company's own equity instruments is not recognized in profit or loss.

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3. Financial liabilities

• (1) Subsequent measurement

All financial liabilities are measured at amortized cost in the effective interest method.

• (2) Removal of financial liabilities

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

• (IX) Inventory

• Inventories are measured at the lower of cost or net realizable value. The cost should include the costs of acquisition, production or processing or others incurred when the inventory is sellable or producible and at the location where the inventory is sellable or producible, and calculated under weighted average method. The net realizable value refers to the balance of the estimated selling price under normal operations less the estimated cost of completion and the estimated cost of sales.

• (X) Non-current assets held for sale

• A non-current asset is classified as held for sale if its carrying amount is expected to be recovered principally through a sale transaction instead of through continuing use and if the sale is highly probable. It is measured at the lower of the carrying amount and fair value less costs to sell.

• (XI) The investment under equity method The consolidated company adopts the equity method to account for its investment in affiliates.

• An associate is an enterprise over which the consolidated company has significant influence but is not a subsidiary or a joint venture.

Under the equity method, an investment in an associate is initially recognized at cost and adjusted thereafter to the consolidated Company's share of the profit or loss and other comprehensive income of the associate. In addition, the changes in the equity of affiliated companies are recognized based on the shareholding ratio.

The excess of the acquisition cost in excess of the consolidated company's share of the net fair value of the identifiable assets and liabilities of the affiliated company on the date of acquisition is recognized as goodwill. The goodwill is included in the book value of the investment and shall not be amortized; The share of net identifiable assets and liabilities net fair value of the affiliated company exceeding the acquisition cost is recognized in the current profit or loss.

When an affiliated enterprise issues new shares, if the consolidated company fails to subscribe to the shares proportionally to its shareholding, resulting in a change in the shareholding ratio and thus causing an increase or decrease in the net equity investment, the increase or decrease should adjust the capital reserve - changes in the net equity of the enterprise and joint ventures, and investments under the equity method. However, if the

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shareholding in the affiliated company is decreased due to the failure to subscribe or acquire the equity in proportion to the shareholding, the amount related to the affiliated company recognized in other comprehensive income shall be reclassified proportionally to the decrease. If the related assets or liabilities are directly disposed of on the same basis; if the aforementioned adjustment should be debited to capital reserve, and the capital reserve balance generated by investment under the equity method is insufficient, the difference will be debited to retained earnings.

When the consolidated company's share of losses in an affiliated enterprise equals or exceeds its equity in the affiliated enterprise (including the carrying amount of the investment in the affiliated enterprise under the equity method and other long-term interests that in substance form part of the consolidated company's net investment in the affiliated enterprise), the recognition of further loss is stopped. The consolidated company only recognizes additional losses and liabilities within the scope of legal obligations, presumed obligations, or payments made on behalf of affiliates.

When assessing impairments, the consolidated company treats the entire carrying amount (including goodwill) of the investment as a single asset for impairment testing by comparing its recoverable amount and carrying amount. Any impairment loss recognized is also part of the carrying amount of the investment. Any reversal of the impairment loss shall be recognized within the scope of the subsequent increase in the recoverable amount of the investment.

The consolidated company ceases to adopt the equity method from the date its investment ceases to be an affiliate, and its retained interest in the former affiliate is measured at fair value. The difference between the fair value and the price of disposal and the carrying amount of the investment on the date of cessation of the equity method is included in the current profit and loss. In addition, all amounts recognized in other comprehensive income related to the affiliated enterprise shall be accounted for on the same basis as the basis for the direct disposal of the relevant assets or liabilities by the affiliated enterprise.

The profit or loss arising from the upstream, downstream and side-stream transactions between the consolidated company and the affiliated company is recognized in the consolidated financial statements only to the extent that it is irrelevant to the consolidated company's interest in the affiliated company.

• (XII) Property, plant and equipment Property, plant and equipment are stated at cost and subsequently measured at cost less accumulated depreciation and accumulated impairment loss.

Self-owned land is not depreciated.

The property, plant and equipment is depreciated separately for each significant component on a straight-line basis over their useful lives. The consolidated company reviews the estimated useful life, residual value and depreciation method at least at the end of each year, and applies the impact of changes in accounting estimates prospectively. When derecognizing property, plant and equipment, the difference between the net

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disposal proceeds and the carrying amount of the asset is recognized in profit or loss. Depreciation is accrued using the straight-line method based on the estimated useful lives of the following assets: Land improvements 5 to 20 years Building and structure 3 to 55 years Machine & 2 to 10 years equipment Transportation 3 to 5 years equipment Office equipment 3 to 5 years Leased assets 3 to 10 years Rental betterment Depending on the lease term or the useful life, whichever is shorter.

(XIII) Lease

The consolidated company assesses whether the contract is (or contains) a lease on the inception of the contract.

1. The consolidated company as the lessor

2. When the lease terms transfer almost all the risks and rewards attached to the ownership of assets to the lessee, it is classified as a finance lease. All other leases are classified as operating leases. Under operating leases, lease payments net of lease incentives are recognized as income on a straight-line basis over the relevant lease term.

3. The consolidated company is the lessee

4. Except for low-value asset leases and short-term leases to which a recognition exemption applies, where lease payments are recognized as expenses on a straightline basis over the lease terms, all leases are recognized with a right-of-use asset and a lease liability on the lease commencement date.

The right-of-use assets are measured at the original 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 less accumulated depreciation and accumulated impairment loss after the loss, and adjust the remeasurement of the lease liability. Right-of-use assets are presented on a separate line in the consolidated balance sheets.

The right-of-use assets are depreciated on a straight-line basis from the lease start date to the end of the service life or the expiration of the lease term, whichever is earlier. If the Company obtains the ownership of the underlying asset at the end of the lease term, or if the cost of the right-of-use asset reflects the exercise of the purchase option, the Company depreciates the asset from the commencement date of the lease to the end of the useful life of the underlying asset.

Lease liabilities are initially calculated based on the amount to be paid by the lessee that is expected to be paid by the lessee under the residual value guarantee, the exercise price of the purchase option that is reasonably assured to be exercised, and it is

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measured by the present value of the lease termination penalty that has been reflected in the lease period, less the lease incentives received. If the lease implied interest rate can be easily determined, the lease payment is discounted at the said interest rate. If such interest rate cannot be easily determined, the lessee's incremental borrowing interest rate shall apply. Subsequently, the lease liability is measured at the amortized cost using the effective interest method, and the interest expense is amortized over the lease term. If there are changes in future lease payments during the lease term, the expected payment amount under the residual value guarantee, the evaluation of the underlying asset purchase option, or the index or rate used to determine lease payments, the consolidated company remeasures the lease liabilities and adjusts the right-of-use. However, if the carrying amount of the right-of-use assets has been reduced to zero, the remaining remeasurement amount is recognized in profit or loss. Lease liabilities are presented on a separate line in the consolidated balance sheets.

(XIV) Investment property

Investment property refers to property held to earn rental or for capital appreciation or both, including property that meet the definition of investment property and are in the process of construction and right-of-use assets. Investment property also includes land held for a currently undetermined future use.

An owned investment property owned is initially measured at cost (including transaction cost). A leased investment asset is measured at the original cost (including the original measured amount of the lease liability, the lease payment paid before the lease start date, the original direct cost and the estimated cost of restoring the underlying asset, minus the lease incentives received). An investment property is subsequently measured using a fair value model, and changes in fair value are recognized in profit or loss in the period in which they occur.

When property, plant and equipment and right-of-use assets are reclassified as investment property at the end of self-use, the difference between their original carrying amount and fair value is recognized in other comprehensive income and accumulated in the revaluation surplus of equity. Upon derecognition of the asset, this amount is directly transferred to retained earnings.

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

• (XV) Intangible assets Intangible assets with limited useful life acquired separately are measured at the original cost, and subsequently measured at the cost less accumulated amortization and accumulated impairment losses. Intangible assets are amortized on a straight-line basis over the useful lives. At the end of each year, the estimated useful life, residual value, and amortization method are reviewed, and the effects of changes in accounting estimates are applied prospectively.

The consolidated company's intangible assets with limited useful lives are amortized on a

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straight-line basis over the following useful lives: Computer software 5 years Trademark 10 years

(XVI) Impairment of tangible and intangible assets (excluding goodwill)

The consolidated company assesses whether there is any indication that the tangible and intangible assets may have been impaired at each balance sheet date. If there is any sign of impairment, estimate the recoverable amount of the asset. If the recoverable amount of an individual asset cannot be estimated, the consolidated company estimates the recoverable amount of the cash-generating unit to which the asset belongs. If the pooled assets can be allocated to the cash-generating units on a consistent and reasonable basis, they are allocated to individual cash-generating units; otherwise, they are allocated to the smallest group of cash-generating units that can be allocated on a consistent and reasonable basis. Intangible assets with indefinite useful lives and not yet available for use are tested for impairment at least annually and when there is a sign of impairment.

The recoverable amount is the fair value less cost of sales and its value in use, whichever is higher.

If the recoverable amount of an individual asset or cash-generating unit is lower 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 or loss.

When the impairment loss is subsequently reversed, the carrying amount of the asset or cash-generating unit is increased to the revised recoverable amount. However, the increased carrying amount shall not exceed the carrying amount that would have been determined if the asset or cash-generating unit had no impairment loss (less amortization or depreciation). Reversal of impairment loss is recognized in profit or loss.

(XVII) Reserve for liabilities

The conditions for the recognition of a liability reserve are a present obligation (legal obligation or constructive obligation) arising from a past event, and it is very likely that an outflow of resources with economic benefits will be required to settle the obligation, and the amount of the obligation can be estimated reliably. When the Company expects that some or all of the liability reserve will be attributed, only when it is almost certain to be recognized as a separate asset. If the impact of the time value of money is material, the reserve for liabilities shall be discounted at an interest rate before tax that can properly reflect the time value of money and the specific risk of the liability.

1. Warranty reserve

The warranty obligation under the sales contract is based on the management's best estimate of the expenditure required to settle the Company's obligation and is recognized on the date the relevant product is recognized as revenue.

1. Onerous contracts

When the unavoidable cost of the consolidated company's expected performance of a contractual obligation exceeds the expected economic benefits from the contract, the current obligation arising from the onerous contract is recognized as a reserve for

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liabilities. When assessing whether a contract is onerous, the cost of performing the contract includes the allocation of the incremental cost of performing the contract and other costs directly related to the performance of the contract.

1. To be decided in legal proceedings

The Company 's liability provisions are measured in accordance with the court's judgments for cases yet to be determined.

(XVIII) Recognition of revenue

The Group's revenue from contracts with customers is mainly from construction projects and labor revenue from waste treatment. The accounting treatment is as follows:

1. Construction income

The Group is engaged in the contracting business of construction projects. As the assets are controlled by the customers at the time of construction, the revenue is gradually recognized over time based on the proportion of the construction costs incurred to date. The contract includes fixed and variable consideration. The customer makes a fixed amount of payment in accordance with the agreed schedule. Consideration for some changes (such as fines calculated based on the number of days past due, price adjustment subsidy) are estimated based on past experience and expected values. The Group recognizes revenue only within the scope of the cumulative revenue level where it is probable that no significant reversal will occur. The Group's right to the consideration in exchange for having transferred the product or service to the customer is recognized as a contract asset; when the Group has an unconditional right to the consideration, the contract asset is reclassified into accounts receivable. However, in some contracts, part of the consideration is collected from the customer at the time of payment according to the contract. The Group undertakes the obligation to provide construction work in the future, so it is recognized as a contract liability.

If the degree of completion of the performance obligation under the construction contract cannot be reasonably measured, the contract revenue is recognized only within the range of the expected recoverable cost.

If the situation changes, the estimates of revenue, cost and level of completion will be revised, and the resulting increase or decrease will be reflected in the profit or loss during the period in which the management is aware of the change.

1. Labor service revenue

The labor services provided by the Group are mainly waste treatment and cleanup services. These services are priced separately or through negotiation, and are based on the waste treatment results. They belong to the satisfaction of the performance obligation at a certain point in time. is recognized as income. The contractual agreement price is collected according to the payment period stipulated in the contract.

• (XIX) Cost of borrowing

All borrowing costs are recognized in profit or loss for the period in which they are incurred.

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(XX) Employee welfare

1. Short-term employee benefits

   • Short-term employee benefits are measured at non-discounted amount expected to be paid, and stated as expenses when the relevant services are provided.

2. Post-employment benefits For the defined contribution pension plan, the amount of pension contribution that should be recognized is recognized as expenses during the period of service provided by employees.

3. Remuneration to employees and directors/supervisors Employee remuneration and remuneration to directors and supervisors are recognized as expenses and liabilities when they have legal or constructive obligations and the amount can be reasonably estimated. Subsequently, if the actual distributed amount resolved is different from the estimate, the difference shall be treated as a change in accounting estimate. If the distribution of employee remuneration is paid in shares, the number of shares shall be calculated based on the closing price on the day before the day before the resolution of the board meeting.

4. (XXI) Income tax

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

1. Income tax in the current period

The additional income tax on undistributed earnings calculated in accordance with the Income Tax Act of R.O.C. is listed as the income tax expense in the year resolved by the shareholders' meeting.

1. Deferred income tax

2. Deferred income tax is calculated based on the temporary differences between the tax bases of assets and liabilities and their carrying amounts on the balance sheet at the end of the reporting period.

Deferred income tax liabilities are generally recognized for all taxable temporary differences, while deferred income tax assets are recognized when it is probable that taxable income will be available against which temporary differences and losses can be deducted or expenditures such as the purchase of machinery and equipment. The resulting income tax credits are recognized when used.

The taxable temporary differences related to the investment in subsidiaries, affiliates and joint agreements are all recognized as deferred income tax liabilities. However, if the consolidated company can control the time point of reversal of the temporary difference, and the temporary difference is likely to be available, except for those that will not be reversed in the future. The deductible temporary difference related to such investment is recognized as deferred income tax only when it is probable that there will be sufficient taxable income to realize the temporary difference and it is expected to be reversed in the foreseeable future.

The carrying amount of deferred income tax assets is reviewed at each balance sheet

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date, and the carrying amount is reduced if it is no longer probable that sufficient taxable income will be available to allow all or part of the recovery of the assets. Deferred income tax assets that were not recognized as deferred income tax assets are also reviewed at each balance sheet date, and it is probable that future taxable income will allow all or part of the assets to be recovered, the carrying amount is increased. Deferred income tax assets and liabilities are measured at the tax rates in the period in which the liabilities are expected to be settled or assets realized, based on tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. The measurement of deferred tax liabilities and assets reflects the tax consequences that would arise from the manner in which the Company expects to recover or settle the carrying amounts of its assets and liabilities at the balance sheet date.

1. Current and deferred income tax

2. Current and deferred income tax is recognized in profit or loss, except for the current and deferred income tax related to the item that is recognized in other comprehensive income or directly in equity, respectively.

V. Significant accounting judgments, estimations and major sources of assumption uncertainty

When adopting accounting policies, the consolidated company's management must make judgments, estimates and assumptions that are based on historical experience and other factors that are not readily apparent from other sources. Actual results may differ from estimates.

The consolidated company takes the recent development of COVID-19 in Taiwan and the possible impact on the economic environment into consideration in the cash flow projection, growth rate, profitability, and other related significant accounting estimates. The management will continue to review the estimates and basic assumptions. If a revision of an estimate only affects the current period, it is recognized in the period in which the revision is made; if a revision of an accounting estimate affects the current period and future periods, it is recognized in the period of the revision and future periods.

• (I) Assessment of expected credit impairment loss of receivables

• For the expected credit impairment of the consolidated company's notes and accounts receivable, for the overdue accounts, the allowance for loss is based on the number of days overdue and the loss rate established with forward-looking factors such as future economic forecasts; if there is any abnormal sign in the financial status or payment situation that shows that the payment may not be collectible, the allowance for loss is recognized individually. The assessment process of the allowance for loss involves the assessment and forecast of past events, actual conditions and future overall economic condition; however, the actual result may differ from the estimate.

• (II) Accounting policy for construction contracts

• Construction revenue is recognized by the percentage of completion method over the contract period based on the degree of completion, and contract costs are recognized as expenses in the period in which they are incurred. The degree of completion is calculated based on the contract costs incurred for each contract until the end of the reporting period,

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as a percentage of the estimated total costs of the contract.

Since the estimated total cost and contract items are based on the evaluation and judgment of the management based on the nature of the project, the estimated contract amount, and the materials and work expenses, they may affect the calculation of engineering profit and loss.

VI. Notes to significant accounts

(I) Cash and cash equivalent

(I)	Cash and cash equivalent
(II)	Petty Cash Bank Savings Total Derivatives Details are as follows: Financial assets Financial assets measured at fair values through profit or loss - Current Financial assets measured at fair values through other comprehensive profit or loss- non-current Financial assets measured at amortized cost Current Non-current	December 31, 2025 $1,825 120,506 $122,331 December 31, 2025 $911 $3,153 $194,030 $180,330 $13,700	December 31, 2024
			$1,807 111,418 $113,225 December 31, 2024 $1,978 $－ $209,131 $209,131 $－

1. The consolidated company’s financial assets measured at fair value through other comprehensive income were reclassified from prepayments for investments. These equity investments are held for medium- to long-term purposes.

2. Please refer to Note 8 for the details of the guarantees for short-term and long-term loans and financing quotas as of December 31, 2025 and 2024.

(III) Receivable accounts, net

Accounts receivable Less: Loss allowance Net amount	December 31, 2025 $39,796 (3,257) $36,539	December 31, 2024 $3,257 (3,257) $－

1. The consolidated company applies simplified method to estimate the expected credit losses of all accounts receivable, i.e. using the expected credit losses throughout the duration for measurement. For this measurement purpose, the accounts receivable is classified according to the common credit risk features concerning the representative customers' capacity of paying all amount due on the contract and is included in the forward-looking information. The analysis of the consolidated company's expected credit losses of the accounts receivable is as follows:

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Undue Less than 60 days Overdue 61 to 90 days Overdue 91 to 120 days Overdue 121 to 180 days Overdue over 181 days		December 31, 2025
	Book value of accounts receivable	Weighted average rate of expected credit losses	Allowance for expected credit losses throughout the duration
	$36,539 － － － － 3,257 $39,796	－% －% －% －% －% 100%	$－ － － － － (3,257) $(3,257)

Undue Less than 60 days Overdue 61 to 90 days Overdue 91 to 120 days Overdue 121 to 180 days Overdue over 181 days	December 31, 2024	December 31, 2024
	Book value of accounts receivable	Weighted average rate of expected credit losses	Allowance for expected credit losses throughout the duration
	$－ － － － － 3,257 $3,257	－% －% －% －% －% 100%	$－ － － － － (3,257) $(3,257)

1. The changes in the allowance for expected credit losses on accounts receivable of the consolidated company for 2025 and 2024 are as follows:

Beginning balance (Write-off) in the current period Ending balance	2025 $3,257 － $3,257	2024
		$3,366 (109) $3,257

3. As of December 31, 2025 and 2024, none of the consolidated company’s accounts receivable were pledged as collateral for long-term borrowings or credit facilities. (IV) Other receivable

Other receivable
Other receivable Other receivable accounts-related party Less: Loss allowance Net amount	December 31, 2025 $172,162 － (102,776) $69,386	December 31, 2024
		$165,161 853 (96,077) $69,937

The changes in the allowance for loss of other receivables of the consolidated company for 2025 and 2024 are as follows:

for 2025 and 2024 are as follows:
Beginning balance Current provision Ending balance	2025 $96,077 6,699 $102,776	2024
		$96,077 － $96,077

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In order to accelerate the expansion of Cambodian lottery business, the Group assisted in handling matters such as market development expenditures by temporarily proceeded according to the contract between the Group and RSI (please refer to Note 9(3) for details), which was recorded under other receivables of NTD 24,152 thousand. Due to the complexity and uncertainty of the relevant local market handling procedures, the Group has evaluated its future economic benefits inflow and expected low recoverability. Therefore, the expected credit impairment loss of NTD 24,152 thousand has been fully provided for in previous years. In June 2024, the consolidated company disposed of all its shareholding in Wingo Investment Co., Ltd. and reclassified it as non-current assets held for sale. Please refer to the descriptions in Note 6(7) for details. The loan to Wingo Investment Co., Ltd. was recognized in the account of other receivables for NTD 67,268 thousand. Due to the longer loan period and low expected recoverability as judged by the consolidated company, the expected credit impairment loss was fully recognized in 2021 for the relevant amount. The remaining other receivables amounted to NTD 80,742 thousand. According to the policy, expected credit impairment losses of NTD 6,699 thousand and NTD 0 thousand were recognized for the years ended December 31, 2025 and 2024, respectively.

(V) Inventory

Supplies Less: Allowance for inventory write-downs Total	December 31, 2025 $29,144 (29,144) $—	December 31, 2024 $29,144 (29,144) $—

1. The consolidated company's inventory costs of goods sold in 2025 and 2024 were both NTD 252, and the inventory valuation losses recognized in 2024 and 2023 were both NTD 0.

2. As of December 31, 2025 and 2024, none of the consolidated company's inventories were pledged as collateral.

(VI) Prepayments

were pledged as collateral. Prepayments
Prepayment for construction Residual tax credit Input tax Other prepaid expenses Total	December 31, 2025 $154,637 21,204 — 17,408 $193,249	December 31, 2024
		$106,024 16,731 1 13,778 $136,534

(VII) Non-current assets held for sale

The Company’s subsidiary, Viva Technologies Co., Ltd. (formerly Gampire Technology Co., Ltd.), resolved at its Board of Directors meeting in June 2024 to dispose of its entire equity interest in Wingo Investment Co., Ltd. The transaction meets the criteria for noncurrent assets held for sale under IFRS 5, and the related assets have been reclassified as non-current assets held for sale in the amount of NTD 10,991 thousand and presented separately in the consolidated balance sheet. Following the execution of a definitive purchase commitment, the purchaser indicated that, due to increasingly stringent

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regulations imposed by the Cambodian government on the lottery business, the completion of the transaction may be extended beyond one year. This extension qualifies for the exception to the one-year requirement under IFRS 5. The major classes of assets and liabilities held for sale are as follows:

The investment under equity method Exchange difference in the financial statements of foreign operations Deposits received Non-current assets held for sale	Amount
	$11,744 768 (1,521) $10,991

The proceeds from the sale are expected to exceed the carrying amount of the related net assets, therefore, no impairment loss should be recognized when the assets are classified as non-current assets held for sale.

(VIII) Subsidiary

Subsidiaries included in the consolidated financial statements

The entities in the consolidated financial statements are as follows:

==> picture [467 x 41] intentionally omitted <==

----- Start of picture text -----

Name of Shareholding ratio
investment December 31, December 31,
company Name of subsidiary Nature of business 2025 2024 Description
The Company Tung Kai Construction Co., Building and construction industry 100.00% 100.00%
----- End of picture text -----

The Company	Tung Kai Construction Co.,	Building and construction industry	100.00%	100.00%
	Ltd
The Company	TUNG CHUANG	Self-Use Renewable Energy	100.00%	100.00%
	RESOURCE TECHNOLOGY	Generation Equipment Business.
	CO., LTD.
The Company	Tung Kai Technology	Investment in the design and	100.00%	100.00%
	Engineering Co., Ltd.	construction of clean room
		electromechanical systems, design
		and construction of industrial plant
		electromechanical systems, and
		trading of electromechanical
		equipment
The Company	Viva Technologies Co., Ltd.	Wholesale of Machinery and	100.00%	100.00%	Note 1
		Precision Instruments
The Company	Xingrongxing Environmental	Waste disposal	－	－	Note 2
	Protection Technology Co.,
	Ltd.
The Company	Long Qiang Construction Co.,	Development and Leasing of	100.00%	－	Note 3
	Ltd.	Residential, Commercial, and
		Industrial Properties
Tung Kai	Tung Kai Technology	Research and development, design,	100.00%	100.00%	Note 4
Technology	Engineering (Shanghai) Co.,	and manufacturing of purification
Engineering Co.,	Ltd.	system equipment, and related
Ltd.		technical consulting services, etc.

• Note 1: Gampire Technology Co., Ltd. changed its name to Viva Technologies Co., Ltd. in July 2025.

• Note 2: On September 16, 2024, the Board of Directors of Xingrongxing Environmental Protection Technology Co., Ltd. resolved to dissolve and liquidate the company. The dissolution application was submitted to the Taoyuan City Government on November 8, 2024, and subsequently approved. The proceeds of NTD 1,915 thousand from the dissolution and liquidation were recognized under other receivables, with a loss on disposal of NTD 3,180 thousand recognized.

• Note 3: Long Qiang Construction Co., Ltd. was approved for incorporation on April 21, 2025.

• Note 4: The investee, Tung Kai Technology Engineering (Shanghai) Co., Ltd., has completed tax clearance, and the deregistration process is currently in progress.

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(IX) The investment under equity method Investment in associates

==> picture [483 x 255] intentionally omitted <==

----- Start of picture text -----

||||||||
|---|---|---|---|---|---|---|
|Establishment|Book value|Shareholding ratio|
|and place of|
|2025.12.31|2024.12.31|2025.12.31|2024.12.31|
|Name of invested company|Main Business|operation|
|Self-Use Renewable Energy|
|Shuangjian|Photoelectric|The Republic|
|Limited|Generation Equipment|of China|$13,818|$14,318|30.00%|30.00%|
|Business.|
|1.|The financial information on affiliates of the consolidated company under the equity|
|method is summarized as follows. The financial information refers to the amounts|
|included into the consolidated financial statements of the Company:|
|December 31, 2025|December 31, 2024|
|The consolidated carrying amount of the|
|Company's affiliated companies under the equity|
|method at the end of the period|$ 46,056|$ 47,722|
|Share attributable to the Company|$ 13,818|$ 14,318|
|2025|2024|
|Net (loss) in current period|$(500)|$(350)|
|－|－|
|Other consolidated income/loss|
|Total comprehensive income|$(500)|$(350)|

----- End of picture text -----

1. Investments in Shuangjian Photoelectric Limited accounted for using the equity method and the Company’s share of its comprehensive income (loss) for 2024 were recognized based on the investee’s financial statements for the same period audited by other auditors. As of December 31, 2024, the carrying amount of the investment accounted for using the equity method was NTD 14,318 thousand, and the Company’s share of investment loss recognized for 2024 was NTD (350) thousand. For 2025, such amounts were recognized based on the investee’s financial statements that were not audited by CPAs; however, management believes that the absence of an audit would not have a material impact on the financial statements.

2. The consolidated company recognized a loss of NTD (4,308) thousand on its investment in Wingo Investment Co., Ltd., accounted for using the equity method, prior to the Board’s approval in June 2024 to dispose of its entire shareholding. The investment was subsequently reclassified as a non-current asset held for sale; please refer to Note 6(7) for details.

3. As of December 31, 2025 and 2024, the consolidated company's investments under the equity method had not been provided as collateral.

(X) Property, plant and equipment

==> picture [442 x 117] intentionally omitted <==

----- Start of picture text -----

||||
|---|---|---|
|December 31, 2025|December 31, 2024|
|Land and land improvements|$7,110|$7,296|
|Building and structure|3,601|4,310|
|Machine & equipment|5,566|6,341|
|Transportation equipment|99|161|
|Office equipment|1,037|852|
|Rental betterment|47|536|
|－|－|
|Leased assets|
|Total|$17,460|$19,496|

----- End of picture text -----

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Cost Balance on January 1, 2024 Addition Disposition Reclassification Balance, December 31, 2024 Balance on January 1, 2025 Addition Disposition Balance, December 31, 2025 Accumulated depreciation and impairment Balance on January 1, 2024 Depreciation Disposition Reclassification Balance, December 31, 2024 Balance on January 1, 2025 Depreciation Disposition Balance, December 31, 2025	Land and land improvements	Building and structure	Machine & equipment	Transportation equipment	Office equipment	Rental betterment	Leased assets	Total
	$75,746 - - (62,467)	$86,762 - (2,853) (58,587)	$79,850 - (72,050) -	$7,060 170 (5,300) -	$21,977 893 (763) -	$17,127 91 - -	$20,047 - - -	$308,569 1,154 (80,966) (121,054)
	$13,279	$25,322	$7,800	$1,930	$22,107	$17,218	$20,047	$107,703
	$13,279 - -	$25,322 - -	$7,800 - -	$1,930 - (1,196)	$22,107 644 (2,139)	$17,218 - (3,439)	$20,047 - (1,738)	$107,703 644 (8,512)
	$13,279	$25,322	$7,800	$734	$20,612	$13,779	$18,309	$99,835
	$5,796 187 - -	$52,946 2,378 (2,058) (32,254)	$60,324 6,033 (64,898) -	$6,862 207 (5,300) -	$21,359 519 (623) -	$13,534 3,148 - -	$20,047 - - -	$180,868 12,472 (72,879) (32,254)
	$5,983	$21,012	$1,459	$1,769	$21,255	$16,682	$20,047	$88,207
	$5,983 186 - $6,169	$21,012 709 - $21,721	$1,459 775 - $2,234	$1,769 62 (1,196) $635	$21,255 459 (2,139) $19,575	$16,682 489 (3,439) $13,732	$20,047 - (1,738) $18,309	$88,207 2,680 (8,512) $82,375

1. The reclassification in 2024 was due to a change in use of certain land and buildings of the consolidated company, which are to be held for the purpose of earning rental income or capital appreciation, and were reclassified as investment property at their fair value at the date of change in use. The difference of NTD 362,200 thousand between the carrying amount and the fair value on the date of purpose change was recognized as other comprehensive income - revaluation increment of property, plant, and equipment. The fair value evaluation techniques and unobservable major input used by the consolidated company for that property on the date of the purpose change are consistent with those used on the reporting date. Please refer to Note 6(12) for details.

2. In 2024, the difference of NTD 8,087 thousand between the decrease in the cost of property, plant and equipment due to disposal of NTD 80,966 thousand and the accumulated depreciation of NTD 72,879 thousand had not been collected and was recognized as other receivables.

3. Please refer to Note 8 for the consolidated company's property, plant and equipment as collateral.

(XI) Lease agreement

1. Right-of-use assets

as collateral. ase agreement Right-of-use assets
Carrying amount of right-of-use assets Houses and buildings Transportation equipment Total	December 31, 2025 $7,277 8,026 $15,303	December 31, 2024
		$1,452 7,121 $8,573

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Addition of right-of-use assets Lease modification (lease cancellation) Depreciation expense of right-of- use assets Building Transportation equipment Total 2. Lease liabilities Carrying amount of lease liabilities Current Non-current Discount rate of lease liabilities Building Transportation equipment 3. Other lease information Expenses of low-value and short- term lease assets Total cash (outflow) for leases	2025 $16,930 $— $6,380 3,820 $10,200 December 31, 2025 $9,565 $5,900 December 31, 2025 2.10%~3.420% 1.85%~3.615% 2025 $6,407 $(17,036)	2024
		$7,669
		$(1,222)
		$5,779 2,829 $8,608 December 31, 2024
		$4,307 $4,337 December 31, 2024
		2.10%~3.180% 1.85%~3.615% 2024
		$8,777 $(18,003)

The consolidated company has elected the recognition exemption for the subject matter that qualifies for short-term leases and leases of low value, and does not recognize the related right-of-use assets and lease liabilities of these leases.

(XII) Investment property

Investment property measured at fair value

Balance on January 1, 2024 Reclassification (Note 1) Balance, December 31, 2024 Balance on January 1, 2025 Gain (loss) from changes in fair value (Note 2) Disposition Balance, December 31, 2025	Self-owned assets Land Building and structure $— $— 393,681 57,319 $393,681 $57,319 $393,681 $57,319 20,749 (6,749) (414,430) (50,570) $－ $－	Total
	Land $— 393,681 $393,681 $393,681 20,749 (414,430) $－
		$— 451,000
		$451,000
		$451,000 14,000 (465,000) $－

1. The consolidated company's reclassification of investment property is described in Note 6(10). The input used in the fair value evaluation techniques for the consolidated company's investment property is a level 3 input. For the reconciliation of the carrying

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amount at the beginning and ending of the period, please refer to the above table of changes.

Note 1: The consolidated company's investment property is subsequently measured using the discount cash flow analysis under the income approach. The relevant information is as follows:

==> picture [392 x 37] intentionally omitted <==

----- Start of picture text -----

Land and buildings at Guanyin Plant in Taoyuan
Underlying asset City
Local or similar property rental NTD 348 - NTD 365/3.3058 m2/month
----- End of picture text -----

information is as follows: Underlying asset Local or similar property rental	Land and buildings at Guanyin Plant in Taoyuan City NTD 348 - NTD 365/3.3058 m2/month
levels
Current status	In normal use
Capitalization rate	1.99%
Discount rate	3.92%
Outsourced appraisal or self-	Outsourced appraisal
appraisal
Name of appraisal firm	REPro International Appraisals
Name of the professional	Hsu, Hsiang-Yi and Wang, Hsin-Ya
appraiser
Date of appraisal	2024/5/22
Fair value by the outsourced	$451,000 thousand
appraisal
Reviewing CPA	WU,LIN-FANG
Name of Reviewing CPA firm	Wu Lin Fang CPA firm
Conclusion of review	Reasonable
Date of review report	2024/6/18

For the appraisal using the income approach, the information of the subject property and comparable asset with the same or similar characteristics, including the total revenue, total expenses, and the capitalization rate or discount rate over the most recent three years, should be collected. The estimates of the above parameters are based on the information of the subject property and comparable asset with the same or similar characteristics over the most recent three years. They are adjusted through a comprehensive analysis of their continuity, stability, and growth to verify the availability and rationality of the data. The changes in future revenue (cash inflows) and expenses (cash outflows) for each period are based on the historical revenue and expenses (cash flows) of the subject property, as well as those of comparable assets in the same industry or with substitutable characteristics, idle or loss ratios, and the revenue and expenses from current or potential future plans. Estimation and calculation of the objective net operating income, determined as total revenue minus total expenses, are based on the objective net operating income of the subject property’s highest and best use, while taking into account the income of neighboring similar properties based on their highest and best uses.

The discount rate is determined using the risk premium method. Factors such as the fixed deposit interest rate, government bonds rate, real estate investment risk, money supply-demand variation, the trend of real estate value and etc. are taken into account to decide the likely rate of return on the most common investment as a basis for the discount rate, which is then adjusted to account for the differences

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of individual characteristics between the above most common investment and the subject property. The discount rate is based on the floating rate offered by Chunghwa Post Co., Ltd. for two-year small postal time deposit, plus 0.75%, resulting in a calculated interest rate of 2.375%. After taking into consideration the liquidity, risk, appreciation, management, and tax of the subject property, the discount rate is determined to be 3.92%. The estimation of capitalization considers the net operating income of comparable subject properties divided by their price. The weighted-average capitalization rate is 1.99%.

The description of the fair value evaluation technique and unobservable major input are as follows:

Evaluation technique

Discounted cash flow (DCF) method of the income approach is adopted as the evaluation technique. Discounted cash flow method of the income approach: refers to the method that sums up the discounted net operating incomes over the future periods of analyzing cash flow and the property value at the end of the analysis periods using appropriate discounted rates to estimate the value for the subject property. This method is applicable to the evaluation of real estate investment for investment purposes.

Relationship between the unobservable major input Unobservable major and the fair value input measurement Risk-adjusted The estimated fair value discount rate of will increase (or decrease) 3.92%. if: The risk-adjusted discount rate decrease (increase).

Note 2: The consolidated company's investment property is subsequently measured using

the discount cash flow analysis under the income approach. The relevant information is as follows:

==> picture [392 x 24] intentionally omitted <==

----- Start of picture text -----

Underlying asset Land and buildings at Guanyin Plant in Taoyuan City
Local or similar property rental NTD 347 - NTD 437/3.3058 m2/month
----- End of picture text -----

information is as follows: Underlying asset Local or similar property rental	Land and buildings at Guanyin Plant in Taoyuan City NTD 347 - NTD 437/3.3058 m2/month
levels
Current status	In normal use
Capitalization rate	2.58%
Discount rate	3.92%
Outsourced appraisal or self-	Outsourced appraisal
appraisal
Name of appraisal firm	REPro International Appraisals
Name of the professional	Hsu, Hsiang-Yi and Wang, Ming-Yang
appraiser
Date of appraisal	2025/8/6
Fair value by the outsourced	$465,000 thousand
appraisal
Reviewing CPA	WU,LIN-FANG
Name of Reviewing CPA firm	Wu Lin Fang CPA firm
Conclusion of review	Reasonable
Date of review report	2025/8/8

For the appraisal using the income approach, the information of the subject property and comparable asset with the same or similar characteristics, including the total revenue, total expenses, and the capitalization rate or discount rate over

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the most recent three years, should be collected. The estimates of the above parameters are based on data collected for the subject property and comparable properties with similar characteristics, including total income, total expenses, and capitalization rates or discount rates over the past three years. They are adjusted through a comprehensive analysis of their continuity, stability, and growth to verify the availability and rationality of the data. The changes in future revenue (cash inflows) and expenses (cash outflows) for each period are based on the historical revenue and expenses (cash flows) of the subject property, as well as those of comparable assets in the same industry or with substitutable characteristics, idle or loss ratios, and the revenue and expenses from current or potential future plans. Estimation and calculation of the objective net operating income, determined as total revenue minus total expenses, are based on the objective net operating income of the subject property’s highest and best use, while taking into account the income of neighboring similar properties based on their highest and best uses.

The discount rate is determined using the risk premium approach, taking into consideration factors such as bank time deposit rates, government bond yields, the risk profile of real estate investments, currency fluctuations, and trends in property prices. An appropriate benchmark rate of return is selected based on investments in assets of a general nature, and adjustments are made by comparing differences between such benchmark investments and the subject property, including factors such as liquidity, risk, potential for appreciation, and the degree of management complexity. The discount rate for this valuation is based on the two-year postal time deposit floating rate for small deposits published by Chunghwa Post Co., Ltd., plus 0.75%, resulting in a calculated interest rate of 2.375%. After adjusting for factors such as the liquidity, risk, appreciation potential, management characteristics, and tax considerations of the subject property, the discount rate for this case was determined to be 3.92%. The capitalization rate is estimated with reference to the gross rental yield of the subject property and determined after considering local vacancy conditions and related expenses, with an additional risk premium applied, resulting in a capitalization rate of 2.58%.

The description of the fair value evaluation technique and unobservable major input are as follows:

Relationship between the unobservable major input Unobservable major and the fair value Evaluation technique input measurement Discounted cash flow (DCF) method of Risk-adjusted The estimated fair value will the income approach is adopted as the discount rate of increase (or decrease) if: evaluation technique. Discounted cash 3.92%. The risk-adjusted discount flow method of the income approach: rate decrease (increase). refers to the method that sums up the discounted net operating incomes over

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Relationship between the unobservable major input Unobservable major and the fair value input measurement

Evaluation technique

the future periods of analyzing cash flow and the property value at the end of the analysis periods using appropriate discounted rates to estimate the value for the subject property. This method is applicable to the evaluation of real estate investment for investment purposes.

2. For information on investment property pledged as collateral, please refer to Note 8.

(XIII) Intangible assets

(XIII)	Intangible assets
(XIV)	Goodwill Computer software Total Cost Balance on January 1, 2024 Disposition Balance, December 31, 2024 Balance on January 1, 2025 Disposition Balance, December 31, 2025 Accumulated amortization Balance on January 1, 2024 Amortization Disposition Balance, December 31, 2024 Balance on January 1, 2025 Amortization Disposition Balance, December 31, 2025 Prepaid investment Prepaid investment Minus: Accumulated impairment Total			December 31, 2025 December 31, 2024 $－ $－ － 15 $－ $15 Goodwill Computer software Total $3,180 $15,908 $19,088 (3,180) (2,214) (5,394) $－ $13,694 $13,694 $－ $13,694 $13,694 － (1,831) (1,831) $－ $11,863 $11,863 $－ $15,403 $15,403 － 490 490 － (2,214) (2,214) $－ $13,679 $13,679 $－ $13,679 $13,679 － 15 15 － (1,831) (1,831) $－ $11,863 $11,863 December 31, 2025 December 31, 2024 $75,566 $95,066 (75,566) (75,566) $－ $19,500		December 31, 2024
				Goodwill $3,180 (3,180) $－ $－ － $－ $－ － － $－ $－ － － $－ December 31,
					$95,066 (75,566) $19,500

The subsidiary Viva Technologies Co., Ltd. (formerly Gampire Technology Co., Ltd.) resolved at its Board of Directors meeting on July 27, 2017 to engage in the lottery business in Cambodia. Through Royal Sino Investment Group Co., Ltd. (hereinafter referred to as “RSI”), the Company applied for licenses in Cambodia for lottery, property insurance, and electronic payment businesses and obtained the relevant concessions. Pursuant to the Board resolution, an initial payment of USD 1,000 thousand was made on August 3, 2017, followed by a further payment of USD 1,500 thousand on August 31,

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2017, for a total investment of USD 2,500 thousand (NTD 75,566 thousand). As the relevant registration procedures for the investment have not yet been completed, the amount is recorded as prepayments for investments.

The consolidated company's internal evaluation on the handling of the cases shows that as the progress of the aforementioned businesses and licenses by RSI Company is not as expected, the future economic benefit inflow of the aforementioned prepayments and the expected recoverability of assets are low. NTD 75,566 thousand was presented as impairment loss. In addition, the consolidated company has filed a criminal complaint against the Taiwanese responsible person of RSI Company. Please refer to Note IX (3) for the description and progress of the lawsuit.

Discussed and explained at the Board meeting held on August 9, 2024, and approved by the Board of Directors on October 18, 2024, the Company plans to invest in Strong And Wise Material Tech Company for the development of textile waste recycling technology and plant construction, with a total investment amount of NTD 120,000 thousand. As of December 31, 2025, NTD 19,500 thousand had been paid toward the investment. The aforementioned investment has completed the relevant registration procedures and is classified as financial assets measured at fair value through other comprehensive income. (XV) Borrowings

1. Short-term loans

rowings Short-term loans
Secured borrowings Credit loan Borrowings secured by non-financial institutions Total Interest rate per annum	December 31, 2025 $21,400 － 51,351 $72,751 3.225%~5.212%	December 31, 2024
		$89,200 15,344 43,993
		$148,537
		3.215%~4.82%

• (1) For the consolidated company’s assets pledged as collateral for bank loans, please refer to Note VIII.

• (2) For details of the collateral for borrowings secured by non-financial institutions, please refer to Note 7.

• Long-term loan

please refer to Note 7. Long-term loan
Secured borrowings Less: Due within one year Net amount Interest rate per annum	December 31, 2025 $－ － $－ －	December 31, 2024
		$240,000 (15,000)
		$225,000
		3.215%

For the consolidated company’s assets pledged as collateral for bank loans, please refer to Note VIII.

(XVI) Reserve for liabilities

refer to Note VIII. Reserve for liabilities
Provisions - current Provisions - non-current Total	December 31, 2025 $64,032 — $64,032	December 31, 2024
		$53,818 13,410 $67,228

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Balance on January 1, 2024 Liability reserve increased in the current period Liability reserve used in the current period Balance, December 31, 2024 Balance on January 1, 2025 Liability reserve increased in the current period Liability reserve used in the current period Balance, December 31, 2025	Warranty reserve $4,846 — (473) $4,373 $4,373 — (4,373) $—	To be decided in legal proceedings $22,643 29,117 (2,315) $49,445 $49,445 18,787 (4,200) $64,032	Reserve for onerous contractual liabilities $13,410 — — $13,410 $13,410 — (13,410) $—	Total
				$40,899 29,117 (2,788)
				$67,228
				$67,228 18,787 (21,983) $64,032

1. Maintenance and warranty

2. For the consolidated company that is still liable for warranty after the completion of a major project, a warranty reserve is provided based on the warranty period stipulated in the contract and the possibility of incurring warranty expenses.

3. Pending litigation

4. The consolidated company 's liability provisions for cases that have been judged by the court yet to be determined.

5. The provision for onerous contracts represents the excess of the present value of unavoidable future costs under non-cancellable onerous contracts over the expected economic benefits to be received from such contracts.

(XVII) Employee welfare

1. Defined contribution plan

2. The consolidated company's pension system under the "Labor Pension Act" is a statemanaged defined contribution plan. Under the Labor Pension Act, the Company makes monthly contributions to employees' individual pension accounts at 6% of their monthly salaries and wages.

3. Defined benefit plan

4. (1) The pension system adopted by the consolidated company in accordance with the "Labor Standards Act" of R.O.C. is a defined benefit pension plan managed by the government. The payment of employee pension is based on the years of service and the average salary of the six months before the approved retirement date. The Company appropriates 2% of the total monthly salary of the employees as pension funds, which are deposited in the account at the Bank of Taiwan under the name of the Supervisory Committee of Labor Pension Reserve Fund. For employees who are expected to meet the retirement eligibility, the difference will be contributed in a lump sum before the end of March of the following year. The special account is managed by the Bureau of Labor Funds, Ministry of Labor.

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The Company has no right to affect the investment management strategy.

• (2) The amount of the defined benefit plan recognized in the balance sheet is as follows:

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----- Start of picture text -----

Item December 31, 2025 December 31, 2024
Present value of
defined benefit
obligation $11,488 $11,422
Fair value of plan
assets (9,590) (8,791)
Net defined benefit
liability $1,898 $2,631
----- End of picture text -----

• (3) Due to the pension system under the "Labor Standards Act", the Company is exposed to the following risks:

• A. Investment risk:

• B. Interest rate risk

  • The Bureau of Labor Funds, Ministry of Labor, manages labor pension funds through both self-management and outsourced management, investing in domestic and foreign equity securities, debt securities, and bank deposits. However, the amount of plan assets allocated to the Company is calculated based on a return not lower than the interest rate on a two-year time deposit with local banks. A decrease in the interest rates of government bonds or corporate bonds will increase the present value of defined benefit obligations. However, the returns on debt investments of plan assets will also increase accordingly, resulting in a partially offsetting effect on the net defined benefit liability.

• C. Salary risk: The calculation of the present value of the determined benefit obligation is based on the future salary of the members of the plan. Therefore, an increase in the salary of the plan members will increase the present value of the defined benefit obligation.

• (4) The present value of the Company's defined benefit obligation was actuarially calculated by a qualified actuary. The significant assumptions on the measurement date are as follows:

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----- Start of picture text -----

Item December 31, 2025 December 31, 2024
Discount rate 1.33% 1.58%
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Discount rate	1.33%	1.58%
Expected salary	2.00%	2.00%
adjustment rate

• (5) If there are reasonable and possible changes to the major actuarial assumptions, and all other assumptions remain unchanged, the amount of increase (decrease) in the present value of the defined benefit obligation will be as follows:

Discount rate Increase by 0.5% Decrease by 0.5% Expected salary adjustment rate Increase by 0.5% Decrease by 0.5%	December 31, 2025 $(266) $452 December 31, 2025 $447 $(266)	December 31, 2024
		$(149) $495 December 31, 2024
		$490 $(149)

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Because actuarial assumptions may be interrelated, only a single assumption is unlikely to change. Therefore, the above sensitivity analysis may not be able to reflect the actual change in the present value of defined benefit obligation.

• (6) The amount expected to be appropriated in the next year is as follows:

Expected amount to be contributed within one year Average period to maturity of defined benefit obligations	December 31, 2025 $188	December 31, 2024
		$546
	6 years	6 years

(7) The amount of appropriation to be appropriated by the consolidated company in accordance with the percentage specified in the defined contribution plan in 2025 and 2024 has been recognized in the statement of comprehensive income for total expenses of NTD 4,376 thousand and NTD 3,949 thousand, respectively.

(XVIII) Income tax of continuing operations

1. Income tax recognized in profit or loss

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Item 2025 2024
Income tax in the current period
－ －
Incurred in the current year $ $
Deferred income tax
Incurred in the current year 19,169 8,399
Income tax gains recognized in profit or loss $19,169 $8,399
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2. Reconciliation of accounting profit and income tax benefit
Item 2025 2024
Net (loss) before tax from continuing operations $(179,490) $(101,762)
Tax amount calculated at the domestic tax rate
－ －
applicable to the income of the relevant country $ $
Land incremental tax (2,158) －
Effect of deferred income tax 21,327 8,399
Income tax gains recognized in profit or loss $19,169 $8,399
3. Income tax recognized in other comprehensive income
Item 2025 2024
Deferred income tax
Incurred in the current year
Remeasurement of defined benefit plan $117 $(136)
Revaluation increments of property, plant, and
equipment － 271
Income tax expenses recognized in other comprehensive
income $117 $135
4. Current income tax assets and liabilities
December 31, December 31,
Item
2025 2024
Current income tax asset
Income tax refund receivable $216 $156
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5. Deferred tax assets and liabilities

Changes in deferred income tax assets and liabilities are as follows: 2025

2025
Deferred income tax assets Net defined benefit liability Reserve for liabilities Loss carryforwards Expected loss from credit impairment Loss on inventory valuation and obsolescence Onerous contracts Others Total Deferred income tax liabilities Investment property 2024 Deferred income tax assets Net defined benefit liability Reserve for liabilities Loss carryforwards Expected loss from credit impairment Loss on inventory valuation and obsolescence Onerous contracts Others Total Deferred income tax liabilities Investment property	Opening balance $526 8,603 116,174 1,021 5,369 2,682 753 $135,128 Opening balance $271 Opening balance $493 5,805 101,124 10,565 5,369 2,682 555 $126,593 Opening balance $－	Recognized in income statement $(29) 2,683 21,278 (73) － (2,682) (121) $21,056 Recognized in income statement $(271) Recognized in income statement $(103) 2,798 15,050 (9,544) － － 198 $8,399 Recognized in income statement $－	Recognized in other comprehensive income $(117) － － － － － － $(117) Recognized in other comprehensive income $－ Recognized in other comprehensive income $136 － － － － － － $136 Recognized in other comprehensive income $271	Closing balance
				$380 11,286 137,452 948 5,369 － 632 $156,067 Closing balance
				$－
				Closing balance
				$526 8,603 116,174 1,021 5,369 2,682 753 $135,128 Closing balance
				$271

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6. Authorization of income tax

Authorization of income tax
	Status of approval
The Company, Tung Kai Construction,	Viva Technologies
(formerly Gampire Technology)	Approved until 2023
Tung Chuang Resource	Approved until 2024
ity
Common stock share capital
	December 31, 2025 December 31, 2024
Rated shares (thousand shares)	384,000 384,000
Authorized share capital	$3,840,000 $3,840,000
Issued and paid shares
(thousand shares)	75,378 73,074
Issued share capital	$753,777 $730,736

(XIX) Equity

1. Common stock share capital

2. (1) The ordinary shares issued have a par value of NTD 10 per share, and each share is entitled to one voting right and the right to receive dividends.

3. (2) The Company, in order to attract and retain talented employees, enhance employee engagement, and create value for the Company and its shareholders, resolved at the Board of Directors’ meetings held on September 16, 2024 and March 27, 2024 to issue restricted shares to employees, with planned issuances of 4,150 thousand shares and 5,000 thousand shares, respectively. Such issuances were subsequently approved by the extraordinary shareholders’ meeting held on November 19, 2024 and the annual general meeting held on June 6, 2024, respectively. On January 8, 2025, the competent authority approved the issuance of 3,650 thousand new restricted employee shares within two years from the date of effective registration.

4. (3) On June 6, 2024, the Company's shareholders' meeting resolved to authorize the Board of Directors to issue common shares for cash capital increase within four times within one year after the shareholders' meeting resolution, within the range of 64,000 thousand shares. On October 18, 2024, the Board of Directors resolved to amend the number of issuances to six batches within one year from the date of resolution at the shareholders’ meeting. On June 26, 2024, the Board of Directors approved the first capital increase by private placement of common shares, and 10,000 thousand shares were issued at a premium of NTD 15 per share, totaling NTD 150,000 thousand. June 28, 2024 was the basis for the capital increase, with all stock payment for the new shares fully settled. The registration change was approved and recorded by the competent authority on August 26, 2024. At the shareholders’ meeting held on June 23, 2025, it was reported that the Board of Directors had resolved not to proceed with the remaining private placement plan.

5. (4) On June 23, 2025, the shareholders’ meeting resolved to conduct a private placement of common shares of up to 54,000 thousand shares, to be carried out in up to six tranches within one year from the date of the shareholders’ resolution.

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• (5) On July 28, 2025, the Board of Directors resolved to proceed with a cash capital increase through a private placement of 2,304,149 common shares at a subscription price of NTD 13.02 per share, for a total amount of NTD 30,000 thousand. The record date for the capital increase was July 29, 2025, on which date the full amount of the share subscription proceeds was received. The capital increase was subsequently approved for amendment registration by the competent authority on November 20, 2025.

• Capital reserve

December 31, 2025 December 31, 2024 Common stock premium $6,959 $66,380

• (1) In accordance with the law, the capital reserve shall not be used except to make up for the Company's losses. When the Company has no losses, the capital reserve generated by the issuance of shares in excess of the par value and the income received as gifts may be allocated a certain percentage of the paid-in capital every year. To limit capitalization, the aforementioned additional paid-in capital may also be distributed in cash in proportion to the original shareholdings of shareholders.

• (2) On June 6, 2024, the Company's general shareholders' meeting resolved to use NTD 40,494 thousand from additional paid-in capital - common stock premium and NTD 44,723 thousand from additional paid-in capital - expired stock options of convertible corporate bonds to offset a deficit of NTD 85,217 thousand.

• (3) On June 23, 2025, the general shareholders' meeting resolved to offset accumulated losses of NTD 66,380 thousand with capital surplus—share premium on common shares in the same amount.

• Retained earnings and dividend policy

• (1) According to the Company's Articles of Incorporation, if there are earnings in the annual final accounts, they shall be distributed in the following order: (1) Income tax is withheld; (2) losses are offset; (3) 10% of the earnings are set aside as legal reserve; (4), appropriate or reverse special reserve according to laws and regulations; (5) the remaining earnings distribution plan shall be proposed by the Board of Directors and submitted to the shareholders' meeting. In the retained shares distribution plan for each fiscal year, the method of distributing dividends and profit distribution to shareholders may involve offering of new shares and distributing cash. The specific proportion of each method shall be determined and planned by the Board of Directors based on actual needs.

  • However, the amount of cash dividends shall not be less than 20% of the total dividends to be distributed to shareholders in the current year. However, if the amount of cash dividend to be distributed according to the aforesaid minimum percentage is less than NTD 0.5, the Board of Directors may change the way of distribution in accordance with the prevailing conditions, which is not subject to

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the aforementioned minimum cash dividend to be distributed.

According to the Company Act, the legal reserve shall be appropriated until the total amount reaches the total capital. Legal reserve may be used to offset losses. When the Company has no loss, the portion of the legal reserve exceeding 25% of the paid-in capital can be used to issue new shares or cash in proportion to the original shareholding ratio of shareholders.

When distributing earnings, the Company is required, in accordance with applicable laws and regulations, to first appropriate a special reserve based on the balance of deductions from shareholders’ equity as of the year-end (such as exchange differences arising from the translation of financial statements of foreign operations) before any distribution may be made. Subsequently, when such deductions from shareholders’ equity are reversed, earnings may be distributed to the extent of the amount reversed.

(2) The Company's 2024 and 2023 loss compensation proposals were approved by the shareholders' meeting on June 23, 2025 and June 6, 2024, respectively. The information on the Company's previous earnings appropriation can be found on the MOPS.

4. Other equities

• (1) Exchange difference in the financial statements of foreign operations

(XX)

2025 2024 Beginning balance $684 $678 Exchange differences arising from the translation of financial statements of foreign operations (43) 6 Ending balance $641 $684 (2) Unrealized profit or loss on financial assets at fair value through other comprehensive income 2025 2024 Beginning balance $(1,325) $(1,325) Unrealized loss on equity instruments measured at fair value (16,347) － Ending balance $(17,672) $(1,325) (3) Revaluation increments of property, plant, and equipment 2025 2024 Beginning balance $361,929 $－ Revaluation increments of property, plant, and equipment － 361,929 Disposition (361,929) － Ending balance $－ $361,929 Loss per share 2025 2024 Basic and diluted loss per share Net (loss) attributable to the Company's common stock holders $(160,321) $(93,363) Weighted average number of outstanding common stock (shares in thousands) 74,058 63,872 Basic loss per share (NTD) $(2.16) $(1.46)

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(XXI) Revenue from customer contracts

Revenuefrom customer contracts
Product sale Income Construction revenue - net Total	2025 $1,090 461,564 $462,654	2024
		$1,034 850,388 $851,422

1. Breakdown of contract revenue is as follows:

2025

Product sale Income Construction revenue - net Total Timing of revenue recognition: At a certain point in time Satisfy over time Total Product sale Income Construction revenue - net Total Timing of revenue recognition: At a certain point in time Satisfy over time Total	Technology Business Department $290 445,818 $446,108 $290 445,818 $446,108	Construction Business Department $－ 15,746 $15,746 $－ 15,746 $15,746 2024	Other departments $800 － $800 $800 － $800	Total
				$1,090 461,564
				$462,654
				$1,090 461,564 $462,654
	Technology Business Department $－ 843,799 $843,799 $－ 843,799 $843,799	Construction Business Department $－ 6,589 $6,589 $－ 6,589 $6,589	Other departments $1,034 － $1,034 $1,034 － $1,034	Total
				$1,034 850,388
				$851,422
				$1,034 850,388 $851,422

1. The contract assets and contract liabilities related to the revenue from construction contracts with customers recognized by the consolidated company are as follows:

Total costs incurred and recognized profit Less: Amount of invoices for construction progress Net contract assets and liabilities in progress Reported as: Contract assets Contract liabilities Total	December 31, 2025 $4,452,088 (4,427,772) $24,316 $224,888 (200,572) $24,316	December 31, 2024
		$6,163,158 (6,081,678)
		$81,480
		$207,226 (125,746) $81,480

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3. Contract balance

Contract balance
Contract assets Construction contract payment Construction retention receivables Less: Loss allowance Total Contract liabilities Construction contract payment	December 31, 2025 $224,888 149,598 (3,381) $371,105 $200,572	December 31, 2024
		$207,226 231,992 (4,205)
		$435,013
		$125,746

(1) The expected credit loss of the consolidated company's contract assets is analyzed as follows:

as follows:
Undue Less than 60 days Overdue 61 to 90 days Overdue 91 to 120 days Overdue 121 to 180 days Overdue over 181 days	Carrying amount of construction retention receivables $147,693 － － － － 1,905 $149,598	December 31, 2025
		Weighted average rate of expected credit losses	Allowance for expected credit losses throughout the duration
		1% －% －% －% －% 100%	$(1,476) － － － － (1,905) $(3,381)

Undue Less than 60 days Overdue 61 to 90 days Overdue 91 to 120 days Overdue 121 to 180 days Overdue over 181 days		December31,2024
	Carrying amount of construction retention receivables	Weighted average rate of expected credit losses	Allowance for expected credit losses throughout the duration
	$230,087 － － － － 1,905 $231,992	1% －% －% －% －% 100%	$(2,300) － － － － (1,905) $(4,205)

• (2) The changes in the allowance for loss of contract assets of the consolidated company for 2025 and 2024 are as follows:

company for 2025 and 2024 are as follows:
2025 Beginning balance $4,205 Add: Impairment loss recognized for the period 45,693 Less: Amount written off as uncollectible during the period (45,693) Less: Reversal of impairment loss for the period (824) Ending balance $3,381	2024
	$4,534 － － (329) $4,205

(XXII) Employee remuneration

The Company's Articles of Incorporation stipulates that if there is a profit in the year, the

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Company shall allocate 1% to 8% as the remuneration to employees, and no more than 5% as the remuneration to directors and supervisors. However, if there are still accumulated losses, an amount shall be reserved in advance to make up for the losses. The aforementioned remuneration to the employees is to be paid in the form of shares or cash. The Board of Directors shall be so paid with the attendance of at least two-thirds of the directors and the approval of at least half of the directors present at the meeting, and shall be reported to the shareholders' meeting.

For 2025 and 2024, as the Company has accumulated losses yet to be offset, no accrual of employee remuneration or directors’ and supervisors’ remuneration is proposed. Relevant information is available on the Market Observation Post System.

(XXIII) Other revenue and expenses

1. Interest income

Other revenue and expenses 1. Interest income
Interest on bank deposits 2. Other revenue Rent revenue Others Total 3. Other profits and losses Disposal of property, plant, and equipment Gain on disposal of investment property Disposal of subsidiaries accounted for using the equity method Net gain from foreign currency exchange Net loss on financial assets measured at fair value through profit or loss Losses on lease modifications Gain on fair value adjustment of investment property Others Total 4. Financial cost Interest on bank borrowings Interest on lease liabilities Other interest Total	2025 $1,297 2025 $652 29,318 $29,970 2025	2024 $1,270 2024
		$181 28,776 $28,957 2024
	$111 54,221 － 27 (245) － 14,000 (66,769) $1,345 2025 $10,961 520 7,784 $19,265	$2,381 － (3,180) 391 (185) (15) － (74,351) $(74,959) 2024 $10,954 221 10,633 $21,808

(XXIV) Financial instruments

1. Fair value information – financial instruments not measured at fair value

The consolidated company's management believes that the book value of financial

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assets and financial liabilities not measured at fair value approaches their fair value or their fair value cannot be reliably measured.

1. Fair value information – financial instruments measured at fair value on a recurring basis

basis
Fair value hierarchy December 31, 2025 Financial assets measured at fair value through profit or loss: Domestic listed stock Financial assets measured at fair value through profit or loss: Domestic unlisted TWSE (GTSM) stocks December 31, 2024 Financial assets measured at fair value through profit or loss: Domestic listed stock	Class I $911 $－	Class II $－ $－	Class III $－ $3,153	Total
				$911
				$3,153
	Class I $1,978	Class II $－	Class III $－	Total
				$1,978

There were no transfers between Level 1 and Level 2 fair value measurements in 2025 and 2024.

Domestic unlisted (OTC) equity investments are classified as Level 3 financial assets.

The valuation technique applied is the asset-based approach, with significant unobservable inputs reflecting discounts for lack of marketability in measuring fair value.

1. Reconciliation of financial instruments measured at Level 3 fair value

Financial assets measured at fair value through other comprehensive income – equity instruments

instruments
Opening balance Reclassification (see Note 6(2)) Recognized in other comprehensive income Closing balance Categories of financial instruments Financial assets Financial assets at fair value through profit or loss Financial assets measured at fair values through other comprehensive profit or loss- non-current Financial assets measured at amortized cost (Note 1) Financial liabilities Financial liabilities measured at amortized cost (Note 2)		2025		2024
		$－ 19,500 (16,347) $3,153 December 31, 2025		$－ － － $－ December 31, 2024
		$911 3,153 468,239 $405,356		$1,978 － 421,811 $738,723

1. Categories of financial instruments

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• Note 1: The balances include financial assets measured at amortized cost, which comprise cash and cash equivalents, financial assets measured at amortized cost, accounts receivable, net (including related parties), other receivables (including related parties), construction deposits paid, and guaranteed deposits paid.

• Note 2: The balances include financial liabilities measured at amortized cost, which comprise short-term borrowings, notes payable, accounts payable (including related parties), other payables (including related parties), long-term borrowings (including current portion of long-term borrowings), and guaranteed deposits received.

• Financial risk management objectives and policies The consolidated company's main financial instruments include cash and cash equivalents, investments in equity instruments, notes and accounts receivable, longterm and short-term loans, and corporate bonds payable. The consolidated company is committed to ensuring that the Company has sufficient and cost-effective working capital when necessary. The consolidated company prudently manages the exchange rate risk, interest rate risk, credit risk and liquidity risk related to operating activities to reduce the potential adverse financial impact of market uncertainty.

The consolidated company's major financial plans are reviewed by the Board of Directors in accordance with the relevant regulations and internal control system. The Finance Department of the consolidated company strictly abides by the relevant financial operating procedures regarding overall financial risk management and division of authority when executing financial planning.

• (1) Market risk

The consolidated company's market risk is the risk of fluctuation in fair value or cash flow due to changes in the market price of financial instruments. Market risk mainly includes exchange rate risk, interest rate risk and other price risks (such as equity instruments).

In practice, it is rare for a single risk variable to change independently, and the changes of each risk variable are usually correlated. However, the following sensitivity analysis of each risk does not consider the interaction of related risk variables.

• A. Interest rate risk

The consolidated company borrowed funds at fixed interest rates and floating interest rates, respectively, resulting in interest rate risk exposure. The carrying amount of the consolidated company's financial liabilities with exposure to the interest rate risk at the balance sheet date is as follows:

December 31, 2025 December 31, 2024 Financial liabilities with cash flow interest rate risk $72,751 $388,537

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Sensitivity analysis

The following sensitivity analysis is based on the interest rate risk exposure of the non-derivative instruments at the balance sheet date. For liabilities with floating interest rates, the analysis method is based on the assumption that the amount of liabilities outstanding on the balance sheet date is in outstanding throughout the reporting period. The rate of change used in the consolidated company's internal reporting of interest rates to management is increased by 1%, which also represents management's assessment of the reasonably possible range of interest rates.

If the interest rate had changed by 1%, with all other variables remaining unchanged, the consolidated company's net income before tax for 2025 and 2024 would have decreased by NTD 3,642 thousand and NTD 3,675 thousand, respectively.

• B. Exchange rate risk

The consolidated company’s financial assets and liabilities exposed to significant foreign exchange rate risk is as follows:

(Unit: foreign currency/NTD thousand)

Financial assets Monetary items USD CNY	December 31,2025	December 31,2025	December 31,2025	December 31,2024	December 31,2024	December 31,2024
	Foreign currency	Exchangerate	New Taiwan Dollar	Foreign currency	Exchangerate	New Taiwan Dollar
		31.43 4.496			32.785 4.523
	$10.04 5.4		$316 24	$11.45 5.4		$375 24

Sensitivity analysis

The consolidated company’s exposure to foreign exchange risk primarily arises from cash and cash equivalents denominated in foreign currencies, which result in foreign exchange gains or losses upon translation. On December 31, 2025 and 2024, when NTD depreciates or appreciates by 1% against USD and CNY, and all other factors remain unchanged, net income for 2025 and 2024 will increase or decrease by NTD 3 thousand and NTD 4 thousand, respectively. The analysis of two terms is based on the same basis. The foreign currency exchange gains (including realized and unrealized) for 2025 and 2024 were NTD 27 and NTD 391 thousand, respectively.

• (2) Credit risk

Credit risk refers to the risk that a counterparty cannot perform its contractual obligation, resulting in a financial loss.

The consolidated company's credit risk is due to operating activities (mainly accounts and notes receivable) and financing activities (mainly bank deposits and various financial instruments).

• A. Operation-related credit risk

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The consolidated company mainly engages in electromechanical and construction projects. Its main customers are public authorities,

TWSE/GTSM listed companies, and general private companies. Due to the characteristics of the industry, the relevant receivables are sometimes concentrated in a single customer. Therefore, when developing a business, the consolidated company must evaluate the customer's credit risk, taking into account the customer's business scale, financial condition, credit rating by credit rating agencies, past transaction experience, current economic environment, and the consolidated company's internal rating standards in order to decide whether to undertake the business. In addition, the bank also reduces the credit risk of specific customers through payment methods such as advance payment for goods and cheque collection. The consolidated company's Finance Department manages the credit risk of bank deposits, fixed income securities and other financial instruments in accordance with the Group's policies.

• B. Financial credit risk

As the counterparties of the Consolidated Company are determined by the internal control process, and they are creditworthy banks and investmentgrade financial institutions, corporate organizations and government agencies, and have no significant performance concerns, there is no significant credit risk.

• (3) Liquidity risk

The consolidated company manages and maintains sufficient cash and cash equivalents to fund operations and mitigate the impact of fluctuations in cash flows. The consolidated company's management supervises the use of bank financing facilities and ensures compliance with the terms of the loan contract. Liquidity and interest rate risk table

The following table details the analysis of the remaining contractual maturity of the consolidated company's non-derivative financial liabilities with the agreed repayment period, which is based on the undiscounted cash flow of financial liabilities based on the earliest date on which the consolidated company may be required to repay.

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----- Start of picture text -----

Within 12 months 1- 3 years More than 3 years
December 31, 2025
Non-derivative financial
liabilities
－ －
Non-interest-bearing $329,608 $ $
liabilities
－ －
Instruments with floating 74,099
interest rates
Lease liabilities 9,902 4,948 1,126
Total $413,609 $4,948 $1,126
----- End of picture text -----

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Within 12 months December 31, 2024 Non-derivative financial liabilities Non-interest-bearing liabilities $347,189 Instruments with floating interest rates 172,621 Lease liabilities 4,448 Total $524,258	1- 3 years $－ 53,021 3,489 $56,510	More than 3 years
		$－ 190,546 1,000 $191,546

(XXV) Cash flow information

Changes in liabilities arising from financing activities are as follows:

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----- Start of picture text -----

Non cash change
January 1, 2025 Cash flow Addition of Termination Exchange December 31, 2025
Lease － －
$8,644 $(10,109) $16,930 $ $ $15,465
liabilities
Non cash change
January 1, 2024 Cash flow Addition of Termination Exchange December 31, 2024
Lease －
$11,202 $(9,020) $7,669 $(1,207) $ $8,644
liabilities
----- End of picture text -----

VII. Related party transactions

Transactions, account balances, income, and expenses between the Company and its subsidiaries have been eliminated on consolidation and are not disclosed in this note. In addition to those disclosed in other notes, the transactions between the consolidated company and other related parties are as follows:

(I) Names of related parties and their relationships

Relationship with the consolidated Name of related party company Huayang Venture Capital Co., Ltd. The Company's institutional chairperson Representative of the Company's Hsu, Chin-Lung

The Company's institutional chairperson Representative of the Company's juridical person chairman Vice Chairman of the Company (individual director) Substantive related party (the responsible person resigned in March 2025 and is no longer a substantive related party)

Kuo, Hui-Lan

Herlu tech CO., LTD. (hereinafter referred to as "Herlu tech")

(II) Business transactions

Operating cost

(II)	Business transactions Operating cost
(III)	Herlu tech Accounts receivable and payable 1. Other receivable Herlu tech	2025 $－ December 31, 2025 $－	2024 $15,509 December 31, 2024 $853
	1.

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2. Accounts payable

(IV)	December 31, 2025 December 31, 2024 Herlu tech $－ $16,219 Other transactions 1. Prepayments December 31, 2025 December 31, 2024 Herlu tech $－ $53,165 2. Loans from related parties (recognized in other payables-related parties) The consolidated company's loan from related parties is detailed as follows: December 31, 2025 December 31, 2024 Hsu, Chin-Lung $50,000 $－ Kuo, Hui-Lan － 50,000 Total $50,000 $50,000 Interest rate interval 5%~5.69% 5.689%	December 31, 2025 December 31, 2024 Herlu tech $－ $16,219 Other transactions 1. Prepayments December 31, 2025 December 31, 2024 Herlu tech $－ $53,165 2. Loans from related parties (recognized in other payables-related parties) The consolidated company's loan from related parties is detailed as follows: December 31, 2025 December 31, 2024 Hsu, Chin-Lung $50,000 $－ Kuo, Hui-Lan － 50,000 Total $50,000 $50,000 Interest rate interval 5%~5.69% 5.689%	December 31, 2025 December 31, 2024 Herlu tech $－ $16,219 Other transactions 1. Prepayments December 31, 2025 December 31, 2024 Herlu tech $－ $53,165 2. Loans from related parties (recognized in other payables-related parties) The consolidated company's loan from related parties is detailed as follows: December 31, 2025 December 31, 2024 Hsu, Chin-Lung $50,000 $－ Kuo, Hui-Lan － 50,000 Total $50,000 $50,000 Interest rate interval 5%~5.69% 5.689%
		$50,000 －	$－ 50,000
		$50,000 5%~5.69%	$50,000 5.689%

For 2025 and 2024, interest expenses recognized by the consolidated company on borrowings from related parties amounted to NTD 2,602 thousand and NTD 9,160 thousand, respectively. As of December 31, 2025 and 2024, NTD 1,305 thousand and NTD 106 thousand, respectively, remained unpaid.

3. Operating expenses

Hua Yang Venture Capital Co., Ltd.	December 31, 2025 $4,419	December 31, 2024 $－

4. Guarantees provided by related parties

The consolidated company’s borrowings from non-financial institutions are secured by the personal real estate of the Company’s Chairman, with both the Company and the Chairman acting as joint and several guarantors. Please refer to Note 6(15) for details.

(V) Remuneration to key management personnel

Short-term employee benefits Post-employment benefits Total	2025 $18,299 768 $19,067	2024
		$17,796 710 $18,506

VIII. Pledged or mortgaged assets

The following assets have been provided as guarantee deposits from banks, long-term and shortterm loan pledges, warranty pledges, construction performance bonds, restricted construction payments, refund of prepayments, and long-term loan collateral:

Item Financial assets measured at amortized cost Property, plant and equipment Investment property	December 31, 2025	December 31, 2024
	$194,030	$209,131
	$－ $－	$4,871 $451,000

IX. Significant contingent liabilities and unrecognized commitments

(I) The details of the guaranteed notes payable and bank guarantees issued by the consolidated company as of December 31, 2025 and 2024 are as follows:

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Construction performance bond Project warranty Guarantee of advance payment Total	December 31, 2025 $1,039,618 35,445 213,008 $1,288,071	December 31, 2024
		$1,126,058 93,811 126,368 $1,346,237

• (II) The amounts of endorsements/guarantees as of December 31, 2025 and 2024 were NTD 634,756 thousand and NTD 673,235 thousand, respectively.

• (III) The Company's subsidiary, Viva Technologies Co., Ltd. (formerly Gampire Technology Co., Ltd.) entered into a joint venture agreement with Royal Sino Investment Group Co., Ltd. (RSI) to invest in business in Cambodia. RSI began to remit funds totaling USD 2,500 thousand starting August 2017. However, RSI had not fulfilled its contractual obligations as promised. The Company has set aside an investment loss of USD 2,500 thousand. Gampire Technology Co., Ltd. filed a criminal lawsuit against Mr. Xiao-Feng Tai in Taiwan Shilin District Court in December 2018, but lost the lawsuit in November 2020. In July 2019, Gampire Technology Co., Ltd. filed a criminal proceeding in Cambodia against Mr. Xiao-Feng Tai for fraud and misappropriation. The case was also pending on the court in Phnom Penh, Cambodia. The Cambodia National Police Headquarters has issued the warrant for Mr. Xiao-Feng Tai in September 2020. In 2020, Mr. Xiao-Feng Tai sought a settlement of the amount of compensation from a local Cambodian lawyer team. Gampire Technology Co., Ltd. has already proposed to the other party the amount of compensation to the Company; however, as Mr. Tai has not entered Cambodia, the matter remains pending the counterparty’s response. The Company filed a claim for related losses against its former management team and other parties involved in the case.

• (IV) The Company had a disagreement with the subcontractors Xin Hong Da Industrial Co., Ltd., Yi Hong Electrical Co., Ltd., Jun Xu Industrial Co., Ltd. and Meng Da Industrial Co., Ltd. over the amount of the construction payment, and the Company believed that the Company should pay NTD 11,909 thousand, the Company believes that the conditions for the payment of the construction payment have not yet been fulfilled, and the Company cannot request payment according to the contract. According to Taiwan Taipei District Court's verdict of the first instance, the Company shall pay NTD 11,909 thousand. However, due to significant omissions in the original verdict, the Company has filed an appeal against the original verdict. On January 10, 2025, the Taiwan High Court rendered a judgment, partially overturning the first-instance ruling by annulling the late payment interest imposed on the Company for the period from November 26, 2020, to October 13, 2021. The remaining appeals were dismissed. The Company filed an appeal with the Supreme Court on February 3, 2025. The appeal was dismissed by the Supreme Court on October 1, 2025. In January 2026, both parties reached a settlement, and in accordance with the terms of the settlement agreement, NT$11,909 thousand was paid by January 30, 2026.

• (V) The Company was prosecuted by Taiwan Changhua District Attorney's Office for violating the Waste Disposal Act. Taiwan Changhua District Court ordered 2020 litigation ruling Zhu-Shang-Su-Zhi No.1 that the penalty for execution was NTD 17,000 thousand

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and the unlawful income was NTD 40,082 thousand, and accrue interest on a monthly basis from December 2021 until paid into the state treasury. The Company did not agree with the verdict and filed an appeal. The whole case was appealed to Taiwan High Court Taichung Branch Court on February 22, 2023 under 2022 Appeal No. 991. The original judgment was revoked, and the penalty for enforcement was NTD 14,000 thousand, and the unlawful income was NTD 36,645 thousand. The Company filed an appeal to the Supreme Court on March 22, 2023. The case number is 2023 No. 2472. In April 2024, the Company received a judgment dismissing the appeal, with the third-instance ruling finalized. The Company has recognized related losses of NTD 28,002 thousand (under other gains and losses) in the consolidated financial statements for the Q1 2024. The decision in this case does not have a significant impact on the Company's operations and finances.

In addition, the Company received a letter from the Taichung City Government requesting that the local waste in Taichung be removed by a deadline. However, the Company believes that the quantity stated in the letter is different from the indictment, and the attribution of responsibility and whether it is a resource product are consistent with the above. In view of the discrepancy with the content of the verdict, the Company has filed a complaint to the Taichung City Government but the decision was rejected. It has now filed an administrative lawsuit with the Taichung High Administrative Court. The Taichung High Administrative Court has ruled that the appeal should be filed in 2022 with the Taichung Branch of the Taiwan High Court No. 991 concludes the criminal case until it is finalized. Litigation proceedings are suspended. During the period of the administrative litigation, the Environmental Protection Bureau on March 7, 2023, filed a claim for NTD 141,794 thousand to the Taoyuan Branch of the Administrative Enforcement Department of the Ministry of Justice for the seizure of the Guanyin Factory, a real estate owned by the Company, for execution. However, on March 16, 2023, the Company applied to the Taoyuan Branch of the Administrative Execution Department of the Ministry of Justice for the suspension of the execution (for seizure or payment), and stated the following conditions: (1) willing to pay in 72 instalments; (2) to report to the Environmental Protection Bureau, Taichung City Government and propose a specific clearing and transportation plan to avoid the compulsory execution on behalf of the Company. Accordingly, the Taoyuan Branch of the Administrative Enforcement Agency of the Ministry of Justice has canceled the seizure registration of the Guanyin Factory, a real property owned by the Company. The Company submitted a removal and transportation plan to the Environmental Protection Bureau, Taichung City Government on March 30, 2023 for review. On July 19, 2023, the removal plan was approved by the Environmental Protection Bureau, Taichung City Government. The Company may execute the clearance and transportation plan according to the reviewed content. Subsequently, the Environmental Protection Bureau of the Taichung City Government revised the estimated non-performance fee to NTD 76,948 thousand in a letter dated

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January 30, 2024 Taoyuan Branch of the Administrative and Enforcement Administration of the Ministry of Justice, and a further letter on February 22, 2024 to the Administration of the Ministry of Justice Taoyuan Branch of the Enforcement Department approved the Company to pay the guarantee in installments until the completion of the clearance plan. The Company withdrew the lawsuit from the Taichung High Administrative Court on June 27, 2024.

The Company should be liable for the costs and losses related to the disposal the Taichung Qiguo Plant. The Company filed a claim for related losses against its former management team and other parties involved in the case.

In sum, the Company has recognized provisions for the fines and unlawful income for NTD 45,245 thousand.

• (VI) The Company's subsidiary, Tung Kai Construction Co., Ltd. (hereinafter referred to as "Tung Kai Construction") had a dispute with a subcontractor, SHINN WOEI STEEL STRUCTURE CO., LTD., over the actual work completed and the corresponding payment for the Port of Kaohsiung South Star Warehouse construction project. SHINN WOEI STEEL STRUCTURE CO., LTD. claimed that Tong Kai Construction should pay an additional NTD 16,443 thousand. The case was heard by the Taiwan Taipei District Court, which ruled in favor of Tong Kai Construction on February 27, 2025. SHINN WOEI STEEL STRUCTURE CO., LTD. filed an appeal on March 21, 2025 against the judgment, and the case is currently under review by the Taiwan High Court.

• (VII) The Company's subsidiary, Gampire Technology Co., Ltd. (hereinafter referred to as “Gampire”), was involved in a lawsuit with Bingotimes Digital Technology Co., Ltd. over payment. Bingotimes Digital Technology Co., Ltd. claimed a payment of NTD 7,562 thousand. According to the 2023 Chung-Su-Zhi No.149 civil judgment of the Taiwan Taipei District Court, Gampire should pay NTD 7,562 thousand. However, due to significant omissions in the original first-instance verdict, Gampire has filed an appeal against the original verdict, and the case is currently reviewed by the Taiwan High Court.

• (VIII) The Company has a dispute with Rifeng Engineering Co., Ltd. regarding retention amounts of NT$1,643 thousand. On June 11, 2025, the Taiwan Taipei District Court rendered a judgment in favor of the Company. Rifeng Engineering Co., Ltd. has filed an appeal against the aforementioned verdict, which is currently under review by the Taiwan High Court.

• (IX) The Company and JETWELL COMPUTER CO., LTD. were in a dispute over a construction payment of NTD 70,848 thousand. JETWELL COMPUTER CO., LTD. applied for a default summons from the Taiwan Taipei District Court, while the Company raised an objection within the statuary period and entered into the litigation process. The case is currently being reviewed by the Taipei District Court.

• (X) The Company and Fortune Electric Co., Ltd. were in a dispute over a construction payment of NTD 1,700 thousand. Fortune Electric Co., Ltd. applied for a default summons from the Taiwan Taipei District Court, while the Company raised an objection within the

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statuary period and entered into the litigation process. On July 24, 2025, the Taiwan Taipei District Court rendered a judgment in favor of the Company. Fortune Electric Co., Ltd. filed an appeal on August 11, 2025, and the case is currently under review by the Taiwan High Court.

• (XI) The Company’s subsidiary Tong Kai Construction Co., Ltd.(hereinafter “Tong Kai Construction”) had a dispute with its subcontractor Yun Zan Engineering Co., Ltd. regarding construction payments of NTD 2,700 thousand. In November 2025, the parties reached a settlement. In accordance with the settlement record, Tong Kai Construction is to make monthly payments of NTD 337.5 thousand on or before the 17th of each month from December 17, 2025 to July 17, 2026. Tong Kai Construction has recognized accounts payable of NTD 2,362 thousand accordingly.

• (XII) The Company has a dispute with Yong Han Electromechanical Co., Ltd. regarding engineering payments of NTD 109,502 thousand, and the case is currently under review by the Taiwan Taipei District Court.

• (XIII) The Company’s subsidiary Tong Kai Construction Co., Ltd. (hereinafter “Tong Kai Construction”) has a dispute with its subcontractor Chuan Kanng Enterprise Ltd. regarding retention amounts of NT$1,212 thousand. Chuan Kanng Enterprise Ltd. filed a petition with the Taiwan Taipei District Court for the issuance of a payment order. Tong Kai Construction filed an objection within the statutory period, and the case has proceeded to litigation. The case is currently under review by the Taiwan Taipei District Court.

• (XIV) The Company experienced an incident on the afternoon of June 27, 2025, in which company-issued bank promissory notes were returned unpaid by financial institutions. The Company hereby clarifies that the two bank promissory notes were issued as performance guarantees and do not represent actual debt payments. The return of the notes resulted from the improper presentment of such performance guarantee instruments by Formosa Builders, Inc. (hereinafter referred to as “Formosa Builders”), in breach of the cooperation agreement. This incident is not expected to have a material impact on the Company’s overall financial position or operations. The relevant details were reported to the Board of Directors on July 1, 2025, August 12, 2025, and October 1, 2025, as set out below:

• On the same morning, the Company received a telephone notification from the Xinyi Branch of Taiwan Cooperative Bank that Formosa Builders had abruptly presented for payment two bank promissory notes previously issued by the Company as performance guarantees for the “Taoyuan Airport MRT A14 Station MEP and Environmental Control Project,” in the amounts of NTD 86,640 thousand and NTD 108,300 thousand, respectively. These two bank promissory notes were issued solely as performance guarantees between the parties and were not intended as instruments for the settlement of actual monetary obligations. Furthermore, the amounts covered by these performance guarantee notes had not been settled, and such notes do not represent amounts entirely attributable to Formosa Builders.

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1. The Company has not committed any breach of contract. Construction activities at the project site have never been suspended, nor has the Company withdrawn from the project; it has continued to deploy personnel and participate in meetings led by Formosa Builders. The Company had not received any prior notice from Formosa Builders, whether by designated personnel, telephone, correspondence, or written communication, before the sudden presentment of the two performance guarantee promissory notes to the bank on that morning. As a result, the Company was unable to clarify or verify the reasons for such unexpected presentment in advance. Accordingly, in order to safeguard the interests of the Company and its shareholders, payment was withheld and funds were not remitted to the bank account for settlement of the promissory notes, which led to the return of the notes unpaid.

2. Since entering into the contract on December 21, 2023, the project site has experienced ongoing water leakage issues, and certain construction conditions have yet to be clarified. The Company issued written notices to Formosa Builders on January 22 and April 11, 2025; however, no appropriate action was taken. Accordingly, the Company sent further requests for remediation via notarized letters on June 5 and June 20, 2025, stating that failure to rectify the issues could result in termination of the contract due to the inability to proceed with construction. Formosa Builders neither provided any response nor issued any formal demand or notice, and instead abruptly presented the Company’s performance guarantee promissory notes without prior warning. Such actions are clearly inconsistent with Article 28 of the contract and the principle of good faith. The Company has proactively contacted Formosa Builders on multiple occasions and has urged the prompt convening of a coordination meeting to clarify responsibilities and determine the appropriate course for continued performance. Accordingly, the Company has not committed any breach of contract.

3. Formosa Builders, as the project owner of the “Taoyuan International Airport MRT System A14 Station Civil, Water and Environmental Engineering Project—MEP Works,” presented the two performance guarantee promissory notes without prior consultation and while the contract between the parties remained in force. Such actions are not only unreasonable, but also constitute bad faith. The Company has filed a civil claim for damages against Formosa Builders with the Taiwan Taipei District Court on September 8, 2025, seeking compensation for losses arising from the returned promissory notes in order to safeguard the interests of the Company and its shareholders. The Taiwan Taipei District Court subsequently ruled on December 19, 2025, to refer the case to arbitration. The Company will determine the next course of legal action, in consultation with its legal counsel, based on the outcome of the arbitration proceedings.

4. On July 31, 2025, the Company received a civil ruling from the Taiwan Kaohsiung District Court regarding the counterparty, Formosa Builders. After posting security of NTD 11,900 thousand on August 1, 2025, recorded as refundable deposits, the

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Company obtained an enforcement order (No. 114-Si-Zhi-Quan-Xuan-Zi 338) issued by the Taiwan Kaohsiung District Court against the obligor, Formosa Builders. The order prohibits Formosa Builders, prior to the final resolution of the arbitration, withdrawal, settlement, or other termination of the case, from seeking payment of the two promissory notes from the creditor, Lung Ming Green Energy Technology Engineering Co., Ltd., or from the paying bank, including presentment, application for a court ruling on the promissory notes, application for compulsory enforcement, and any other exercise of rights under the promissory notes, as well as transferring such rights to any third party. Third parties are also prohibited from making any payment to the obligor.

1. As of the date of authorization for issuance of these financial statements, the Company has engaged legal counsel to assert its rights and, in accordance with the contract for the “Taoyuan International Airport MRT System A14 Station Civil, Water and Environmental Engineering Project—MEP Works,” submitted the case to the Chinese Arbitration Association, Republic of China on September 23, 2025. The Company believes that it has handled this matter in an appropriate and reasonable manner to safeguard the interests of the Company and its shareholders. During the arbitration proceedings, Formosa Builders filed a counterclaim seeking damages and reimbursement of costs in the amount of NTD 322,091 thousand, alleging significant delays in project progress. The Company considers such claims to be unfounded.

2. On February 4, 2026, the Company received a civil ruling from the Kaohsiung Branch of the Taiwan High Court regarding the Company’s application for provisional measures to maintain the status quo. The court ruled that the portion of the original ruling unfavorable to Formosa Builders was revoked. And that, with respect to the revoked portion, the Company’s application filed with the original court was dismissed. The Company has appealed the ruling and filed further appeals on February 9, February 25, and March 13, 2026. The case is currently under review by the Supreme Court.

3. (XV) The Company’s subsidiary Tong Kai Construction Co., Ltd. (hereinafter “Tong Kai Construction”) has a dispute with its subcontractor Ya Chang Industrial Co., Ltd. regarding retention amounts of NTD 5,343 thousand. Ya Chang Industrial Co., Ltd. filed a petition with the Taiwan Taipei District Court for the issuance of a payment order. Tong Kai Construction filed an objection within the statutory period, and the case has proceeded to litigation. The case is currently under review by the Taiwan Taipei District Court.

4. (XVI) The Company and Cheng An Fireguard Industries Corp. were in a dispute over a construction payment of NTD 8,163 thousand. Cheng An Fireguard Industries Corp. applied for a default summons from the Taiwan Taipei District Court, while the Company raised an objection within the statuary period and entered into the litigation process. The case is currently being reviewed by the Taipei District Court.

5. (XVII) The Company’s subsidiary Tong Kai Construction Co., Ltd. (hereinafter “Tong Kai

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Construction”) has a dispute with its subcontractor Herlu Tech. Co., Ltd. regarding construction payments of NTD 16,191 thousand. Herlu Tech. Co., Ltd. filed a petition with the Taiwan Taipei District Court for the issuance of a payment order. Tong Kai Construction filed an objection within the statutory period, and the case has proceeded to litigation. The case is currently under review by the Taiwan Taipei District Court.

X. Significant losses from disasters : None.

• XI. Significant subsequent events: Please refer to Note 9(4), (11), (14), and item 7.

XII. Others

(I) The employee benefits, depreciation, depletion, and amortization expenses by function are summarized as follows:

==> picture [468 x 171] intentionally omitted <==

----- Start of picture text -----

By function 2025 2024
Classified as Classified as Classified as Classified as
Nature operating operating operating operating
cost expense Total cost expense Total
Employee benefit expense
Salary expense $43,495 $36,605 $80,100 $56,282 $28,611 $84,893
Labor and health insurance 5,556 4,577 10,133 5,808 3,637 9,445
expense
Pension expense 2,546 1,830 4,376 2,639 1,310 3,949
Director’s remuneration － 7,841 7,841 － 6,607 6,607
Other employee welfare 6,713 1,977 8,690 7,488 3,843 11,331
expense
Depreciation expense 1,711 11,169 12,880 1,019 20,061 21,080
Amortization expense － 15 15 － 490 490
----- End of picture text -----

(II) The consolidated company intends to take the following countermeasures to improve the operational status and financial structure to maintain the Company's continuous operation:

1. Business strategy and management:

2. (1) Retaining the current customers: the high-tech plants have been the Company’s profitable area, and the current international customers have long-term partnerships with the Company, with trust in the Company’s professionalism and working quality. Therefore, the Company is still their first choice in case of the subsequent expansion, maintenance, and equipment replacement, which contributes to the Company’s stable profitability. The Company also continues to collaborate with project owners to develop future business opportunities.

3. (2) Cultivation of public works performance: The Company will use the experience of undertaking the Bade Minimum Security Prison and the recognition of the National Architecture Gold Award in the public works category received in 2024, and gradually increase the public works performance in the future to expand the scale of the Company's operations; The Company will be able to stably bring in profits. Following the completion of the Bade project in 2025, the Company plans to seek appropriate compensation from the Public Construction Commission, Executive Yuan for contract duration extensions and design changes, in order to recover entitled project revenue and offset losses incurred on the project. The Company also continues to evaluate participation in public works tenders.

4. (3) Development of solar photovoltaic, wind power and EPC power procurement and

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construction: The Company has built the solar photovoltaic power generation system in Da Pai, Pingtung City, the Linfengying Granary Solar Energy Development and Construction of the Liujia District Farmers' Association in Tainan City, and the Zhixing Precision Solar photovoltaic power generation system installation project. It has also undertaken projects for internationally recognized wind power clients at the Port of Taichung. The Company is actively engaging with other clients to pursue joint development opportunities in EPC projects.

• (4) Development of joint-construction residential buildings: The Company has a track record in residential building projects, including the Mei Bang Kaohsiung Qinghai Section development, the Xutai Chengguang retail and residential complex, and the new building project for the China Grain Products Research and Development Institute. It is actively pursuing joint development opportunities with potential developers, as well as redevelopment projects involving the reconstruction of aging or unsafe buildings under urban renewal programs.

• (5) Optimization of the existing cost evaluation model for construction projects: In the past, changes in engineering drawings, construction methods, and insufficient estimation experience resulted in losses. The Company has also learned from the experience. In the future, the number of personnel involved in the evaluation process will be increased. In addition to the design department, In addition, engineering personnel, finance department, and accounting department personnel with relevant actual records are added to form an evaluation committee to hold project meetings to reduce the financial risk caused by inaccurate evaluation.

• (6) Strengthening of construction quality and specifying the follow-up warranty maintenance service items in the contract: In the past, the construction team did not clearly delineate the scope of the follow-up warranty maintenance service items for each project that has been accepted and completed with the client, and the contract was signed to clarify the responsibilities of both parties, as a result of the construction retention, the customer finds that the construction retention is withheld or only a part of the payment amounted to, and many meetings are held for communication or even resort to the court for the time-consuming and laborious process. Therefore, it is necessary to strengthen the construction quality and specify the follow-up warranty and maintenance service items in the contract to effectively reduce disputes with landlords and impact on the business partnership between both parties.

• (7) Integration of Group resources to enhance efficiency and reduce operating costs: The Company plans to consolidate back-office administrative functions across its two core business units, namely MEP engineering and construction, and integrate existing information systems. Through process optimization, manual procedures

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and related manpower requirements will be reduced, allowing personnel to be redeployed to project execution. These initiatives are expected to improve operational efficiency and achieve cost reduction objectives.

1. Financial:

2. (1) Capital enhancement through private placement of common shares: In consideration of its future operating plans, profitability, and funding needs, the Company’s annual general meeting held on June 23, 2025 approved a private placement of common shares of up to 54,000,000 shares, to be implemented in up to six tranches within one year, with the aim of attracting funding from insiders or strategic investors and expanding into new business areas. To date, the Company has completed the first tranche involving 2,304,149 shares. If the remaining 51,695,851 shares are not issued by May 2026, the Company plans to resubmit the proposal for discussion at the annual general meeting scheduled for June 26, 2026.

3. (2) The Company plans to issue its 5th domestic secured convertible bonds in 2027 to fund new projects and operational needs, while also attracting investors to exercise conversion rights into common shares during the holding period, thereby increasing paid-in capital.

The consolidated company's management believes that the above countermeasures will effectively reduce operating costs, improve operating performance and financial structure, and, with the support of major shareholders, the Company should be able to meet future working capital needs.

XIII. Other Disclosures in Notes

• (I) Information on material transactions

• The material transactions to be disclosed by the consolidated company in 2025 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers are as follows:

• Loaning of funds to others: Please refer to Attached table 1.

• Endorsements/guarantees for others: Please refer to Attached table 2.

• Significant marketable securities held at the end of the period (excluding investment in subsidiaries, affiliates and joint ventures): Please refer to Attached table 3.

• Total purchases from or sales to related parties amounting to at least NTD 100 million or 20% of the paid-in capital: None.

• Amounts receivable from related parties totaling more than NTD100 million or 20% of paid up capital: none.

• Business relationships and important transactions between the parent company and its subsidiaries: Please refer to Attached table 4.

• (II) Information on investee companies:

The information on the investees of the consolidated company in 2025 is as follows (excluding investees in Mainland China): Please refer to Attached table 5 for details.

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(III) Information on investments in Mainland China: Please refer to Attached table 6.

XIV. Segment information

(I) Segment revenue and operating results

The revenue and operating results of the Company and its subsidiaries are analyzed by reporting segment as follows:

Engineering department Environmental Protection Department Other departments Total value of continuing operations Interest income Other revenue Other profits and losses Financial cost Expected loss from credit impairment Share of profit or loss of affiliated companies under equity method Net income before tax	Segment	revenue 2024 $850,388 － 1,034 $851,422	Segment income	Segment income
	2025 $461,564 － 1,090 $462,654		2025 $(183,026) － (2,612) (185,638) 1,297 29,970 1,345 (19,265) (6,699) (500) $(179,490)	2024
				$(27,272) (740) (2,552)
				(30,564) 1,270 28,957 (74,959) (21,808) － (4,658) $(101,762)

The income reported above is generated from transactions with external customers.

Segment interest refers to the profit earned by individual segments, excluding other income, other gains and losses, finance costs, share of profit or loss of affiliates and joint ventures recognized under the equity method, and income tax expense. This measured amount is provided to the chief operating decision maker for allocating resources to segments and evaluating their performance.

(II) Information by region

Taiwan	2025 $462,654	2024 $851,422

(III) Information of important customers

The Group's 2025 and 2024 sales to a single customer accounted for more than 10% of the operating revenue were as follows:

the operating revenue were as follows:
Company A Company B Company C Company D Total	2025 $111,614 99,214 140,387 62,711 $413,926	2024
		$252,186 358,838 155,283 45,177 $811,484

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Lung Ming Green Energy Technology Engineering Co., Ltd. Notes to Financial Statements (continued)

(expressed in thousands unless otherwise specified)

Attached table 1: Loans to others:

Unit: NTD thousand

==> picture [800 x 112] intentionally omitted <==

----- Start of picture text -----

Collateral
No. Lender Borrowing company Transaction Items Relatedparty Maximum balance incurrent period Ending balance (approved bythe Board of Directors) Drawdown Interest rate(%) Nature andpurpose ofthe loan Transaction amount necessary short-term financingReasons of allowance forAppropriatedbad debt Name Value Limit of loans toborrowersindividual Limit of totalloans Remarks
Other receivable
1 Tung Kai International Co., Ltd. Tung Kai Technology Engineering accounts-related Yes $11,024 $10,435 $10,435 - Note 1 $- Repayment of $- $- $- $10,435 $10,435 Note 5
(Shanghai) Co., Ltd. borrowings
party
Other receivables - According to
2 Tung Kai Construction Co., Ltd Wingo Investment Co., Ltd. Yes $47,562 $47,562 $47,562 the contract Note 1 $- Working capital $47,562 $- $- $81,552 $81,552 Note 4
related parties
signed
Other receivables - According to
3 Viva Technologies Co., Ltd. Wingo Investment Co., Ltd. Yes $16,387 $16,387 $16,387 the contract Note 1 $- Working capital $16,387 $- $- $335 $335 Note 6
related parties
signed
----- End of picture text -----

Note 1: Where there is a need for short-term financing.

Note 2: Loaning of funds by the Company to companies with a need for short-term financing is limited to companies to which the Company directly or indirectly holds more than 50% of the voting shares.

Note 3: The limit of funds loaned by the Company to individual subsidiaries and the total amount of funds loaned to all subsidiaries shall not exceed 40% of the net worth of the Company.

Note 4: Unless approved by the parent company's board of directors, the total amount of funds lending shall not exceed 40% of the net value. The individual limit of the subsidiaries directly and indirectly held by the Company for which the Company has control power is capped at 40% of the net value.

Note 5: Tung Kai International Co., Ltd. may only loan funds to companies in which the Company directly or indirectly holds more than 50% of the voting shares, and the limit shall not exceed the total liabilities of the Company.

Note 6: Viva Technologies Co., Ltd.'s total amount of loans to others shall not exceed 40% of net worth, except for loans with equity conversion rights within the scope of proposed capital investments specially approved by the parent company's Board of Directors. Except for such specially approved cases, the limit for loans to the parent company sha

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Lung Ming Green Energy Technology Engineering Co., Ltd. Notes to Financial Statements (continued)

(expressed in thousands unless otherwise specified)

Table 2: Endorsements and guarantees for others

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Endorsement and guarantor Endorsed/guaranteed companyLimits of endorsements/guarantees for a sinximum endorsement/guaran Ending endorsement/guarantee balance Drawdown e amount of guarantees secur Percentage of accumulated Endorsement/guarantee Endorsement/ Endorsements/ Endorsement/
No. endorsements/guarantees to net guarantee made by guarantees made by guarantee made for Remarks
Company name Company name Relationship(Note 1) Guarantee limit Outstanding guarantees Outstanding guarantees Amount Amount of collateral pledged worth as stated in the latestfinancial statement endorsements/guaranteesMaximum limit for the parent companyfor its subsidiaries the subsidiaries forits parent company the operations inMainland China
0 Lung Ming Green Energy Technology Tung Kai Construction Co., Ltd. 2 $1,686,550 $636,196 $634,756 $513,679 $- 112.91% $2,811,000 Yes No No Note 2 and Note 3
Engineering Co., Ltd.
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Note 1: There are seven types of relationships between the endorser/guarantor and the counterparty, and it is sufficient to indicate the type:

(1) A company with business dealings.

(2) A company in which the Company holds, directly or indirectly, more than 50% of the voting shares.

(3) The company holds the majority shareholdings with voting rights of the company directly or indirectly.

(4) Among companies in which the Company directly or indirectly holds more than 90% of the voting shares.

(5) A company that provides mutual insurance between companies in the same industry or co-builders in accordance with the contract for the needs of contracting projects.

(6) A company that each contributing shareholder endorses/guarantees for in proportion to their shareholding ratio due to a joint investment relationship.

(7) The peers are engaged in joint guarantees for the performance of the pre-sale house sales contract in accordance with the regulations of the Consumer Protection Act.

Note 2: The total amount of endorsements/guarantees to external parties and endorsements/guarantees to one single entity are as follows: 1. Financing endorsements/guarantees, the total amount of endorsements/guarantees to external parties and endorsements/guarantees to one single entity shall not exceed 200% of the Company's net worth; 2. Customs duty endorsement/guarantee: for the endorsement/guarantee provided to a single enterprise, the total amount is limited to the tariff amount of the goods to be imported, sailed, and exported, and the total amount is limited to 50% of the Company's net worth; 3. for the contract endorsement/guarantee, the total amount of the endorsement/guarantee for a single enterprise is the total contract amount The total amount shall not exceed three times the net worth of the Company; 4. Other endorsements and guarantees, the total amount of external endorsements/guarantees and the total amount of endorsements/guarantees to a single enterprise shall not exceed 50% of the net worth of the Company.

Note 3: The total amount of endorsements/guarantees for the Company and its subsidiaries as a whole and the amount of endorsements/guarantees for a single enterprise is limited to 10 times the net worth of the Company.

Note 4: Except for the restrictions stated in Notes 2 and 3, the amount of individual endorsements/guarantees for the endorsements/guarantees that the Company has in a business relationship is limited to the amount of the business transaction between the two parties, and the higher of the sales amount.

Note 5: For the Company's endorsement/guarantee for an investee by all of its contributing shareholders in proportion to their shareholding ratios, in addition to the restrictions described in Notes 2 and 3, the endorsement/guarantee for the Company's investment in the investee shall not exceed the amount invested by the parent company in the investee or the net worth of the Company of 20%, whichever is lowe

• Note 6: The total amount of endorsements/guarantees by subsidiaries and the amount of endorsements/guarantees for a single enterprise shall not exceed 20 times the net worth of the company. The total amount of financing and customs endorsement and guarantee excluding contractual endorsements and guarantees shall not exceed 50% of the net worth of the Company.

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Lung Ming Green Energy Technology Engineering Co., Ltd. Notes to Financial Statements (continued)

(expressed in thousands unless otherwise specified)

Table 3: Significant marketable securities held at the end of the period (excluding investments in subsidiaries, associates, and joint ventures):

Unit: NTD thousand

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Year end
Relationship with the
Company in possession Type and name of marketable securitie Ledger account
security issuer Number of shares (thousand shares) Book value Shareholding percentage (%) Fair value Remarks
Lung Ming Green Energy Shares-
Technology Engineering Co., Ltd.
Young Optics Inc. Financial assets measured at fair values
- through profit or loss- current 18 $911 0.02 $911
Lung Ming Green Energy Shares-
Technology Engineering Co., Ltd. Strong and Wise Material Tech. Financial assets measured at fair values
Company Inc. - through other comprehensive profit or loss- 780 3,153 19.60 3,153
non-current
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Lung Ming Green Energy Technology Engineering Co., Ltd. Notes to Financial Statements (continued)

(expressed in thousands unless otherwise specified)

Attached table 4: Business relationships and important transactions between the parent company and its subsidiaries

Unit: NTD thousand

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Status of transaction
Code (Note 1) Trader Trading counterparty Relationship with the
counterparty (Note 2) As a percentage of
Title Amount (Note 3) Trading terms and conditions consolidated total revenue or
total assets
For the year ended December 31, 2025
0 Lung Ming Green Energy Technology Engineering Co., Ltd. Tung Kai Construction Co., Ltd. 1 Operating cost $2 Transaction terms and conditions 0.00%
0 Lung Ming Green Energy Technology Engineering Co., Ltd. Tung Kai Construction Co., Ltd. 1 Rental income $1,200 Transaction terms and conditions 0.26%
0 Lung Ming Green Energy Technology Engineering Co., Ltd. TUNG CHUANG RESOURCE TECHNOLOGY CO., LTD. 1 Rental income $11 Transaction terms and conditions 0.00%
0 Lung Ming Green Energy Technology Engineering Co., Ltd. TUNG CHUANG RESOURCE TECHNOLOGY CO., LTD. 1 Prepaid investment $2,771 Transaction terms and conditions 0.22%
0 Lung Ming Green Energy Technology Engineering Co., Ltd. Viva Technologies Co., Ltd. 1 Prepaid investment $13,002 Transaction terms and conditions 1.04%
0 Lung Ming Green Energy Technology Engineering Co., Ltd. Viva Technologies Co., Ltd. 1 Rental income $11 Transaction terms and conditions 0.00%
1 Tung Kai International Co., Ltd. Tung Kai Technology Engineering (Shanghai) Co., Ltd. 3 Long-term receivable $10,435 Loaning of funds, etc. 0.83%
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• Note 1: Information on business transactions between the parent company and its subsidiaries should be indicated in the numbered column. The number should be filled in as follows:

• "0" for the parent company.

• Subsidiaries are numbered sequentially starting from 1 according to the company type.

• Note 2: The relationship with the transaction party is divided into the following three types, and it is sufficient to indicate the type:

• Parent company to subsidiaries

• Subsidiary to parent company.

• Subsidiary to subsidiary

Note 3: The table only discloses one-way transaction information, which has been eliminated in the consolidated financial statements.

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Lung Ming Green Energy Technology Engineering Co., Ltd. Notes to Financial Statements (continued)

(expressed in thousands unless otherwise specified)

Table 5: The name, location, and other relevant information of the investee companies (excluding mainland China investee companies):

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Unit: NTD thousand
Original investment amount Held at year end Investment
Investee profit income
Name of investment company Name of invested company Location Main business (loss) for the recognized in Remarks
End of the period End of last year Number of shares Percent % Book value current period the current
period
Lung Ming Green Energy Technology Eng $39,644 $39,644 1,330,000 100.00% $435 ($14) ($14) Note 1
Engaged in investment in the design and construction of (USD 1,205 thousand) (USD 1,205 thousand)
Tung Kai Technology Engineering Co., Samoa clean room electromechanical systems, design and
Ltd. construction of industrial plant electromechanical systems,
and trading of electromechanical equipment
Tung Kai Construction Co., Ltd Taiwan Building and construction industry $734,804 $534,804 70,000,000 100.00% $203,666 ($91,227) ($91,227) Note 1
TUNG CHUANG RESOURCE TECHNO Taiwan Self-Use Renewable Energy Generation Equipment Business. $8,000 $8,000 800,000 100.00% $6,905 ($8) ($8) Note 1
Viva Technologies Co., Ltd. Taiwan Wholesale of Machinery and Precision Instruments $155,500 $155,500 15,550,000 100.00% $838 ($238) ($238) Note 1
Long Qiang Construction Co., Ltd. Taiwan Residential, Commercial, and Industrial Properties $1,000 $- 100,000 100.00% $968 ($32) ($32) Note 1
Rental and leasing business
Shuangjian Photoelectric Limited Taiwan Self-Use Renewable Energy Generation Equipment Business. $15,525 $15,525 1,560,000 30.00% $13,818 ($1,666) ($500) Note 2
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Note 1: The aforementioned transactions of the Company's subsidiaries have been eliminated in the preparation of the consolidated financial statements.

Note 2: Affiliated enterprises of the Company.

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Lung Ming Green Energy Technology Engineering Co., Ltd. Notes to Financial Statements (continued)

(expressed in thousands unless otherwise specified)

Table 6: Information on investments in Mainland China

1. The name, principal business activities, paid-in capital, investment method, capital outward and inward remittances, investment gains and losses, carrying value of the investment at the end of the period, and repatriations of investment gains and losses of the investee in Mainland China:

Unit: NTD thousands; foreign currencies in thousands

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Investment amount
Accumulated investment remitted or recovered in Accumulated investment Investee income The shareholding Investment gains Investment income
Name of the invested company in China Main business Paid-in capital amount Investmentmethod Taiwan at the beginningamount remitted from the current period amount remitted fromTaiwan at the end of recognized in the Company's direct orratio of the recognized in theand losses value at year endInvestment book repatriated toTaiwan as of Remarks
of current period Remittance Collection current period current period indirect investments current period current period
Research and development, design, manufacturing, and $23,606 Note 1 $23,606 $- $- $23,606 $493 100.00% $493 $- $- -
Tung Kai Technology Engineering
technical consulting services for purification system
(Shanghai) Co., Ltd.
equipment (US$ 700 thousand) (II) (US$ 700 thousand) (US$ 700 thousand)
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Note 1: There are four types of investment as follows:

• (1) Investing in companies in Mainland China via remittance from a third region.

• (2) Investing in companies in Mainland China through companies set up in third regions.

• (3) Reinvesting in companies in Mainland China through reinvesting in an existing company in a third region.

• (4) Other methods.

2. Limits on investment in Mainland China:

Accumulated	amount	of	remittance from Taiwan to Mainland China at the end of period	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs	The limits on investment in Mainland China approved by the Investment Commission, MOEA
			$23,606	$53,431	$337,320
			(US$ 700 thousand)	(US$ 1,700 thousand)

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