Stock Code:1321

Ocean Plastics Co., Ltd and Subsidiaries

Consolidated Financial Statements

With Independent Auditors' Report

For the Years Ended December 31, 2025 and 2024

Address: 5、6F., No. 310, Juguang Rd., Wanhua Dist., Taipei City 108, Taiwan (R.O.C.)

Telephone: (02)2306-2131

The independent auditors' report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors' report and consolidated financial statements, the Chinese version shall prevail.

Contents	Page
1. Cover Page	1
2. Table of Contents	2
3. Representation Letter	3
4. Independent Auditors’ Report	4
5. Consolidated Balance Sheets	5
6. Consolidated Statements of Comprehensive Income	6
7. Consolidated Statements of Changes in Equity	7
8. Consolidated Statements of Cash Flows	8
9. Notes to the Consolidated Financial Statements
(1) Company history	9
(2) Approval date and procedures of the consolidated financial statements	9
(3) New standards, amendments and interpretations adopted	9~11
(4) Summary of material accounting policies	11~27
(5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty	27~28
(6) Explanation of significant accounts	28~62
(7) Related-party transactions	62~63
(8) Pledged assets	63
(9) Commitments and contingencies	63~64
(10) Losses Due to Major Disasters	64
(11) Subsequent Events	64
(12) Other	64
(13) Other disclosures
(a) Information on significant transactions	65~67
(b) Information on investees	67~68
(c) Information on investment in mainland China	68
(14) Segment information	69~71

Representation Letter

The entities that are required to be included in the consolidated financial statements of 2025 as of and for the year ended December 31, 2025 under the Criteria Governing the Preparation of Affiliation Reports, Consolidated Business Reports, and Consolidated Financial Statements of Affiliated Enterprises are the same as those included in the consolidated financial statements prepared in conformity with International Financial Reporting Standards No. 10, "Consolidated Financial Statements." endorsed by the Financial Supervisory Commission of the Republic of China. In addition, the information required to be disclosed in the consolidated financial statements is included in the consolidated financial statements. Consequently, Ocean Plastics Co., Ltd and Subsidiaries do not prepare a separate set of consolidated financial statements.

Company name: Ocean Plastics Co., Ltd
Chairman:
Date: March 10, 2026.

KPMG

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KPMG

台北市110615信義路5段7號68樓(台北101大樓)

68F., TAIPEI 101 TOWER, No. 7, Sec. 5,

Xinyi Road, Taipei City 110615, Taiwan (R.O.C.)

電話 Tel +886 2 8101 6666

傳真 Fax +886 2 8101 6667

網址 Web kpmg.com/tw

Independent Auditors’ Report

To the Board of Directors of Ocean Plastics Co., Ltd:

Opinion

We have audited the consolidated financial statements of Ocean Plastics Co., Ltd and its subsidiaries (“the Group”), which comprise the consolidated balance sheet as of December 31, 2025 and 2024, the consolidated statement of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of material accounting policies.

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

Basis for Opinion

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

Other Matter

We did not audit the financial statements of certain subsidiaries and investments accounted for using the equity method of the Group. Those financial statements have been audited by other auditors, whose reports have been furnished to us, and our opinion, insofar as it relates to the amounts included in those financial statements, is based solely on the reports of other auditors. The financial statements of these subsidiaries reflect total assets constituting 8% of consolidated total assets as of December 31, 2024, and total operating income constituting 15% of consolidated total operating income for the years then ended. In addition, the financial statements of these investments accounted for using the equity method reflect total assets constituting 4% of consolidated total assets as of December 31,2025 and 2024, respectively, and the related share of profit of associates accounted for using the equity method constituting (53)% and 38% of consolidated total profit before tax for the years then ended, respectively.

Ocean Plastics Co., Ltd has additionally prepared its parent-company-only financial statements as of and for the years ended December 31, 2025 and 2024, on which we have issued an unmodified opinion.

KPMG, a Taiwan partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

KPMG
4-1

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 current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, we do not provide a separate opinion on these matters.

1. Revenue recognition

Please refer to Note 4(o) for the accounting policy on “Revenue recognition” and Note 6(u) for information about revenue recognition.

Description of key audit matter:

The Group engages in manufacturing and selling plastics materials and downstream plastic products (plastic construction tubing, plastic cloth, plasticized synthetic leather, etc.). Considering the high trade volume and decentral customers of the Group, the control of products transfers at different time points might impact the time of revenue recognition. Therefore, revenue recognition has been identified as a key matter in our audit.

How the matter was addressed in our audit:

Our principal audit procedures in this area included, among others: evaluating the reasonableness of revenue recognition, understanding and testing the internal control of sales and collection cycles to ascertain if the implement was operative, checking individual sales transactions, customer orders, shipping certificates, invoices and other documents, delving into periods before and after the balance sheet date in order to evaluate if the period of revenue recognition tallied with the trade condition and shipping documents.

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

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

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

Those charged with governance (including the Audit Committee) are responsible for overseeing the Group’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

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

KPMG

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

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cause significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

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

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

KPMG

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 of the current period and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audit resulting in this independent auditors’ report are Yu, Sheng-Ho and Luo, Re-Chih.

KPMG

Taipei, Taiwan (Republic of China)
March 10, 2026

Notes to Readers

The accompanying consolidated financial statements are intended only to present the consolidated statement of financial position, financial performance and its cash flows in accordance with the accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to audit such consolidated financial statements are those generally accepted and applied in the Republic of China.

The independent auditors’ report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language auditors’ report and consolidated financial statements, the Chinese version shall prevail.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Consolidated Balance Sheets

December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

Assets	December 31, 2025		December 31, 2024		Liabilities and Equity	December 31, 2025		December 31, 2024
		Amount	%	Amount			%	Amount	%	Amount	%
Current assets:						Current liabilities:
1100	Cash and cash equivalents (note 6(a))	$ 438,417	4	694,400	6	2100	Short-term borrowings (notes 6(m) and 8)	$ 500,000	4	460,000	4
1110	Current financial assets at fair value through profit or loss (note 6(b))	598,474	5	449,786	4	2170	Notes and trade payables	288,647	3	375,721	3
1137	Current financial assets at amortized cost (note 6(d))	-	-	44,770	-	2200	Other payables (including related parties) (note 7)	211,759	2	244,216	2
1170	Notes and trade receivables, net (notes 6(e) and (u))	448,136	4	609,422	5	2300	Other current liabilities (notes 6(l), (o), (u) and 7)	44,861	-	44,258	-
130X	Inventories (note 6(f))	453,805	4	452,658	4			1,045,267	9	1,124,195	9
1470	Other current assets (note 6(k))	35,894	-	61,128	1	Non-Current liabilities:
		1,974,726	17	2,312,164	20	2540	Long-term borrowings (notes 6(n) and 8)	3,652,014	32	3,661,014	31
Non-current assets:						2570	Deferred tax liabilities (note 6(r))	903,437	8	790,479	7
1510	Non-current financial assets at fair value through profit or loss (note 6(b))	14,238	-	15,139	-	2640	Net defined benefit liability, non-current (note 6(q))	22,935	-	36,837	-
1517	Non-current financial assets at fair value through other comprehensive income (note 6(c))	452,795	4	475,551	4	2670	Other non-current liabilities, others (notes 6(l), (o) and 7)	66,776	1	101,159	1
1535	Non-current financial assets at amortized cost, net (note 6(d))	44,980	1	-	-			4,645,162	41	4,589,489	39
1550	Investments accounted for using equity method (note 6(g))	473,142	4	481,382	4	Total liabilities		5,690,429	50	5,713,684	48
1600	Property, plant and equipment (notes 6(h) and 8)	3,175,303	28	3,271,020	28	Equity attributable to owners of parent (note 6(s)):
1755	Right-of-use assets (note 6(i))	103,035	1	132,680	1	3100	Capital stock	2,272,283	20	2,272,283	19
1760	Investments property, net (notes 6(j) and 8)	5,118,805	45	5,060,791	43	3200	Capital surplus	24,018	-	21,532	-
1900	Other non-current assets (notes 6(k) and (r))	25,286	-	28,013	-	3300	Retained earnings	3,358,872	29	3,712,628	32
		9,407,584	83	9,464,576	80	3400	Other equity	72,897	1	92,802	1
						3500	Treasury shares	(36,189)	-	(36,189)	-
							Total equity	5,691,881	50	6,063,056	52
Total assets		$ 11,382,310	100	11,776,740	100	Total liabilities and equity		$ 11,382,310	100	11,776,740	100

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Share)

	2025		2024
		Amount	%	Amount	%
4100	Operating revenues, net (notes 6(u) and 7)	$ 3,594,886	100	4,683,170	100
5000	Operating costs (notes 6(f), (q) and 7)	3,335,547	93	4,324,319	92
5900	Gross profit from operation	259,339	7	358,851	8
6000	Operating expenses (notes 6(e), (q), (v) and 7):
6100	Selling expenses	195,176	5	242,632	5
6200	Administrative expenses	172,879	5	186,637	4
6300	Research and development expenses	19,707	1	22,717	-
6450	Impairment loss (gain) determined in accordance with IFRS 9	4,594	-	(81)	-
6000	Total operating expenses	392,356	11	451,905	9
6900	Net operating loss	(133,017)	(4)	(93,054)	(1)
7000	Non-operating income and expenses:
7100	Interest income (note 6(w))	17,299	1	22,264	-
7010	Other income (notes 6(p) and (w))	46,881	1	91,742	2
7020	Other gains and losses, net (note 6(w))	(146,020)	(4)	177,085	4
7050	Finance costs (notes 6(j), (o) and (w))	(20,550)	(1)	(20,552)	-
7060	Share of profit of associates accounted for using equity method (note 6(g))	80,906	2	110,701	2
	Total non-operating income and expenses	(21,484)	(1)	381,240	8
	(Loss)Profit before income tax	(154,501)	(5)	288,186	7
7950	Less: Income tax expenses (note 6(r))	121,048	3	121,252	3
	(Loss)Profit	(275,549)	(8)	166,934	4
8300	Other comprehensive income:
8310	Items that will not be reclassified to profit or loss
8311	Gains on remeasurements of defined benefit plans	8,139	-	29,958	-
8316	Unrealized gains(losses) from investments in equity instruments measured at fair value through other comprehensive income	(22,756)	-	(256,518)	(5)
8349	Income tax related to components of other comprehensive income that will not be reclassified to profit or loss	-	-	-	-
		(14,617)	-	(226,560)	(5)
8360	Items that may be reclassified subsequently to profit or loss
8361	Exchange differences on translation	2,851	-	16,890	-
8399	Income tax related to components of other comprehensive income that will be reclassified to profit or loss	-	-	-	-
		2,851	-	16,890	-
8300	Other comprehensive income	(11,766)	-	(209,670)	(5)
	Total comprehensive income	$ (287,315)	(8)	(42,736)	(1)
	Earnings per share (NT dollars) (note 6(t))
9750	Basic (loss) earnings per share	$	(1.25)		0.76
9850	Diluted (loss) earnings per share	$	(1.25)		0.76

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

	Share capital		Retained earnings				Total other equity interest
	Ordinary shares	Capital surplus	Legal reserve	Special reserve	Unappropriated retained earnings	Total retained earnings	Exchange differences on translation of foreign financial statements	Unrealized gains (losses) on financial assets measured at fair value through other comprehensive income	Total other equity interest	Treasury shares	Total equity
Balance on January 1, 2024	$ 2,272,283	18,915	85,240	2,978,245	543,142	3,606,627	(39,421)	371,851	332,430	(36,189)	6,194,066
Appropriation and distribution of retained earnings:
Legal reserve appropriated	-	-	19,460	-	(19,460)	-	-	-	-	-	-
Cash dividends of ordinary share	-	-	-	-	(90,891)	(90,891)	-	-	-	-	(90,891)
	-	-	19,460	-	(110,351)	(90,891)	-	-	-	-	(90,891)
Profit	-	-	-	-	166,934	166,934	-	-	-	-	166,934
Other comprehensive income	-	-	-	-	29,958	29,958	16,890	(256,518)	(239,628)	-	(209,670)
Total comprehensive income	-	-	-	-	196,892	196,892	16,890	(256,518)	(239,628)	-	(42,736)
Adjustments of capital surplus for company's cash dividends received by subsidiaries	-	2,617	-	-	-	-	-	-	-	-	2,617
Balance on December 31, 2024	2,272,283	21,532	104,700	2,978,245	629,683	3,712,628	(22,531)	115,333	92,802	(36,189)	6,063,056
Appropriation and distribution of retained earnings:
Legal reserve appropriated	-	-	19,690	-	(19,690)	-	-	-	-	-	-
Cash dividends of ordinary share	-	-	-	-	(86,346)	(86,346)	-	-	-	-	(86,346)
	-	-	19,690	-	(106,036)	(86,346)	-	-	-	-	(86,346)
Loss	-	-	-	-	(275,549)	(275,549)	-	-	-	-	(275,549)
Other comprehensive income	-	-	-	-	8,139	8,139	2,851	(22,756)	(19,905)	-	(11,766)
Total comprehensive income	-	-	-	-	(267,410)	(267,410)	2,851	(22,756)	(19,905)	-	(287,315)
Adjustments of capital surplus for company's cash dividends received by subsidiaries	-	2,486	-	-	-	-	-	-	-	-	2,486
Balance on December 31, 2025	$ 2,272,283	24,018	124,390	2,978,245	256,237	3,358,872	(19,680)	92,577	72,897	(36,189)	5,691,881

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

	2025	2024
Cash flows from (used in) operating activities:
(Loss)Profit before tax	$ (154,501)	288,186
Adjustments:
Adjustments to reconcile profit (loss):
Depreciation expense	246,408	236,149
Expected credit loss (gain)	4,594	(81)
Net loss (gain) on financial assets or liabilities at fair value through profit or loss	97,122	(131,775)
Interest expense	79,808	79,634
Interest income	(17,299)	(22,264)
Dividend income	(19,844)	(41,441)
Share of profit of associates accounted for using equity method	(80,906)	(110,701)
Gain on disposal of investment properties	-	(3,890)
Others	(43)	(52)
Total adjustments to reconcile profit (loss)	309,840	5,579
Changes in operating assets and liabilities:
Notes and trade receivables	156,528	(14,487)
Inventories	(1,147)	1,252
Other current assets	25,546	(2,391)
Operating assets	4,205	(1,383)
Contract liabilities	123	(9,660)
Notes and trade payables	(87,074)	(76,172)
Other payable (including related parties)	(32,736)	10,769
Provisions	1,170	1,113
Other current liabilities	(179)	(64)
Net defined benefit liability	(14,181)	(20,134)
Total changes in operating assets and liabilities	52,255	(111,157)
Total adjustments	362,095	(105,578)

See accompanying notes to consolidated financial statements.

8-1

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

	2025	2024
Cash inflow generated from operations	207,594	182,608
Interest received	17,299	22,264
Dividends received	108,990	129,659
Interest paid	(79,560)	(78,003)
Income taxes paid	(9,849)	(8,210)
Net cash flows from operating activities	244,474	248,318
Cash flows from (used in) investing activities:
Acquisition of financial assets at amortized cost	(210)	-
Proceeds from disposal of financial assets at amortized cost	-	29,255
Acquisition of financial assets at fair value through profit or loss	(235,168)	(17,020)
Proceeds from disposal of financial assets at fair value through profit or loss	-	5,000
Acquisition of property, plant and equipment	(116,305)	(117,564)
Acquisition of investment properties	(59,258)	(59,082)
Proceeds from disposal of investment properties	-	40,353
Net cash flows used in investing activities	(410,941)	(119,058)
Cash flows from (used in) financing activities:
Increase in short-term loans	40,000	260,000
Repayments of long-term debt	(9,000)	(269,328)
Increase in deposits received	-	1,478
Payment of lease liabilities	(29,800)	(27,518)
Cash dividends paid	(83,860)	(88,274)
Net cash flows (used in) from financing activities	(82,660)	(123,642)
Effect of exchange rate changes on cash and cash equivalents	(6,856)	6,459
Net (decrease) increase in cash and cash equivalents	(255,983)	12,077
Cash and cash equivalents at beginning of period	694,400	682,323
Cash and cash equivalents at end of period	$ 438,417	694,400

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)
OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

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

(1) Company history

OCEAN PLASTICS CO., LTD (the “Company”) was incorporated in June 1965 as a company limited by shares under the Company Act of the Republic of China (R.O.C.), and merged Yee Fong Chemical & Industrial Co., Ltd. The Company was registered in 5F & 6F., No. 310, Juguang Rd., Wanhua Dist., Taipei City. The consolidated financial statements of the Company as of the year ended December 31, 2025 comprise the Company and subsidiaries (together referred to as the “Group” and individually as “Group entities”). The major business activities of the Company are the manufacture and sale of plastics.

(2) Approval date and procedures of the consolidated financial statements

These consolidated financial statements were authorized for issue by the Board of Directors on March 10, 2026.

(3) New standards, amendments and interpretations adopted

(a) The impact of the IFRS Accounting Standards endorsed by the Financial Supervisory Commission, R.O.C. which have already been adopted.

The Group has initially adopted the following new amendments, which do not have a significant impact on its consolidated financial statements, from January 1, 2025:

Amendments to IAS21 “Lack of Exchangeability”
Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” regarding the application guidance requirements for Section 4.1 of IFRS 9 and the related disclosure requirements of IFRS 7

(b) The impact of IFRS Accounting Standards endorsed by the FSC but not yet effective

The Group assesses that the adoption of the following new amendments, effective for annual period beginning on January 1, 2026, would not have a significant impact on its consolidated financial statements:

IFRS 17 “Insurance Contracts” and amendments to IFRS 17 “Insurance Contracts”
Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” regarding the application guidance requirements for Sections 3.1 and 3.3 of IFRS 9 and the related disclosure requirements of IFRS 7
Annual Improvements to IFRS Accounting Standards—Volume 11
Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The following new and amended standards, which may be relevant to the Group, have been issued by the International Accounting Standards Board (IASB), but have yet to be endorsed by the FSC:

Standards or Interpretations	Content of amendment	Effective date per IASB
IFRS 18 “Presentation and Disclosure in Financial Statements”	The new standard introduces three categories of income and expenses, two income statement subtotals and one single note on management performance measures. The three amendments, combined with enhanced guidance on how to disaggregate information, set the stage for better and more consistent information for users, and will affect all the entities.

• A more structured income statement: under current standards, companies use different formats to present their results, making it difficult for investors to compare financial performance across companies. The new standard promotes a more structured income statement, introducing a newly defined ‘operating profit’ subtotal and a requirement for all income and expenses to be allocated between three new distinct categories based on a company’s main business activities.

• Management performance measures (MPMs): the new standard introduces a definition for management performance measures, and requires companies to explain in a single note to the financial statements why the measure provides useful information, how it is calculated and reconcile it to an amount determined under IFRS Accounting Standards.

• Greater disaggregation of information: the new standard includes enhanced guidance on how companies group information in the financial statements. This includes guidance on whether information is included in the primary financial statements or is further disaggregated in the notes. | January 1, 2027
note: On September 25, 2025, the FSC issued a press release announcing that Taiwan will adopt IFRS 18 beginning in 2028. Entities that need to adopt the new standard earlier may do with the endorsement of the FSC. |

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The Group is evaluating the impact on its consolidated financial position and consolidated financial performance upon the initial adoption of the abovementioned standards or interpretations. The results thereof will be disclosed when the Group completes its evaluation.

The Group does not expect the following other new and amended standards, which have yet to be endorsed by the FSC, to have a significant impact on its consolidated financial statements:

Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”
IFRS 19 “Subsidiaries without Public Accountability: Disclosures” and amendments to IFRS 19 “Subsidiaries without Public Accountability: Disclosures”
Amendments to IAS 21 “Translation to a Hyperinflationary Presentation Currency”

(4) Summary of material accounting policies:

The material accounting policies presented in the consolidated financial statements are summarized below. Except for those specifically indicated, the following accounting policies were applied consistently throughout the periods presented in the consolidated financial statements.

(a) Statement of compliance

These consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (hereinafter referred to as “the Regulations”) and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations endorsed and issued into effect by the Financial Supervisory Commission, R.O.C. (altogether referred to “IFRS Accounting Standards” endorsed by the “FSC”).

(b) Basis of preparation

(i) Basis of measurement

Except for the following significant accounts, the consolidated financial statements have been prepared on a historical cost basis:

1) Financial instruments at fair value through profit or loss are measured at fair value;
2) Financial assets at fair value through other comprehensive income are measured at fair value;
3) The defined benefit liabilities (assets) are measured at fair value of the plan assets less the present value of the defined benefit obligation, limited as explained in note 4(p).

(ii) Functional and presentation currency

The functional currency of each Group entity is determined based on the primary economic environment in which the entity operates. The consolidated financial statements are presented in New Taiwan Dollar (NTD), which is the Company’s functional currency. All financial information presented in NTD has been rounded to the nearest thousand.

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(i) Principles of preparation of the consolidated financial statements

The consolidated financial statements comprise the Company and subsidiaries. Subsidiaries are entities controlled by the Group. The Group ‘controls’ an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases. Intragroup balances and transactions, and any unrealized income and expenses arising from Intragroup transactions are eliminated in preparing the consolidated financial statements. The Group attributes the profit or loss and each component of other comprehensive income to the owners of the parent and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance.

The Group prepares consolidated financial statements using uniform accounting policies for like transactions and other events in similar circumstances. Changes in the Group’s ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received will be recognized directly in equity, and the Group will attribute it to the owners of the parent.

(ii) List of subsidiaries in the consolidated financial statements

Name of investor	Name of Subsidiary	Principal activity	Shareholding		Note
			December 31, 2025	December 31, 2024
The Company	Hong Da Investment Co., Ltd.	General investing	100 %	100 %
The Company	Chang Xin Co., Ltd	Real Estate Development Activities	100 %	100 %
The Company	Fine Environment Technologies Co., Ltd	Wholesale of Plastic Products	100 %	100 %	(Note 1)
The Company	Fermat Enterprises Ltd	Investment holding	100 %	100 %
The Company	Ocean Group Ltd	Investment holding	100 %	100 %
Ocean Group Ltd	Sage Holdings Ltd	Investment holding	100 %	100 %
Ocean Group Ltd	OPC Holdings Ltd	Investment holding	100 %	100 %
Ocean Group Ltd	Rise Future International Ltd	Investment holding	100 %	100 %
Sage Holdings Ltd	Ocean Plastics (Hui Zhou) Co.,	Plastic Products Manufacturing	100 %	100 %
Rise Future International Ltd	Ocean Plastics (Dong Guan) Co., Ltd	Plastic Products Manufacturing	100 %	100 %
Chang Xin Co., Ltd	Shen Yang Development Co., Ltd.	Real Estate Development Activities	100 %	100 %

Note 1: Holds 100% of Fine Environment Technologies Co., Ltd shares with Hong Da Investment Co., Ltd..

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(iii) Subsidiaries excluded from the consolidated financial statements: None.

(d) Foreign currencies

(i) Foreign currency transactions

Transactions in foreign currencies are translated into the respective functional currencies of Group entities at the exchange rates at the dates of the transactions. At the end of each subsequent reporting period, monetary items denominated in foreign currencies are translated into the functional currencies using the exchange rate at that date. Non-monetary items denominated in foreign currencies that are measured at fair value are translated into the functional currencies using the exchange rate at the date that the fair value was determined. Non-monetary items denominated in foreign currencies that are measured based on historical cost are translated using the exchange rate at the date of the transaction.

Exchange differences are generally recognized in profit or loss, except for those differences relating to the following, which are recognized in other comprehensive income:

1) an investment in equity securities designated as at fair value through other comprehensive income;
2) a financial liability designated as a hedge of the net investment in a foreign operation to the extent that the hedge is effective; or
3) qualifying cash flow hedges to the extent that the hedges are effective.

(ii) Foreign operations

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated into the presentation currency at the exchange rates at the reporting date. The income and expenses of foreign operations are translated into the presentation currency at the average exchange rate. Exchange differences are recognized in other comprehensive income.

When a foreign operation is disposed of such control, significant influence, or joint control is lost, the cumulative amount in the translation reserve related to that foreign operation is reclassified to profit or loss as part of the gain or loss on disposal. When the Group disposes of only part of its interest in a subsidiary that includes a foreign operation while retaining control, the relevant proportion of the cumulative amount is reattributed to non-controlling interests. When the Group disposes of only part of its investment in an associate or joint venture that includes a foreign operation while retaining significant influence or joint control, the relevant proportion of the cumulative amount is reclassified to profit or loss.

When the settlement of a monetary receivable from or payable to a foreign operation is neither planned nor likely to occur in the foreseeable future, Exchange differences arising from such a monetary item that are considered to form part of the net investment in the foreign operation are recognized in other comprehensive income.

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(e) Classification of current and non-current assets and liabilities

The Group classifies the asset as current under one of the following criteria, and all other assets are classified as non-current.

(i) It is expected to be realized, or intended to be sold or consumed, in the normal operating cycle;
(ii) It is held primarily for the purpose of trading;
(iii) It is expected to be realized within twelve months after the reporting period; or
(iv) The asset is cash or a cash equivalent (as defined in IAS 7) unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

The Group classifies the liability as current under one of the following criteria, and all other liabilities are classified as non-current.

(i) It is expected to be settled in the normal operating cycle;
(ii) It is held primarily for the purpose of trading;
(iii) It is due to be settled within twelve months after the reporting period; or
(iv) The Group does not have the right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period.

(f) Cash and cash equivalents

Cash comprises cash on hand and demand deposits. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. Time deposits which meet the above definition and are held for the purpose of meeting short term cash commitments rather than for investment or other purposes should be recognized as cash equivalents.

(g) Financial Instruments

Trade receivables and debt securities issued are initially recognized when they are originated. All other financial assets and financial liabilities are initially recognized when the Group becomes a party to the contractual provisions of the instrument. A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at fair value through profit or loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price.

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(i) Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.

On initial recognition, a financial asset is classified as measured at: amortized cost; Fair value through other comprehensive income (FVOCI) – debt investment; FVOCI – equity investment; or FVTPL. Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.

1) Financial assets measured at amortized cost

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:

it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

These assets are subsequently measured at amortized cost, which is the amount at which the financial asset is measured at initial recognition, plus/minus, the cumulative amortization using the effective interest method, adjusted for any loss allowance. Interest income, foreign exchange gains and losses, as well as impairment, are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.

2) Fair value through other comprehensive income (FVOCI)

A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:

it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and
its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to present subsequent changes in the investment’s fair value in other comprehensive income. This election is made on an instrument-by-instrument basis.

Debt investments at FVOCI are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognized in profit or loss. Other net gains and losses are recognized in other comprehensive income. On derecognition, gains and losses accumulated in other comprehensive income are reclassified to profit or loss.

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Equity investments at FVOCI are subsequently measured at fair value. Dividends are recognized as incomes in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized in other comprehensive income and are never reclassified to profit or loss.

Dividend income is recognized in profit or loss on the date on which the Group’s right to receive payment is established.

3) Fair value through profit or loss (FVTPL)

All financial assets not classified as amortized cost or FVOCI described as above (e.g. financial assets held for trading and those that are managed and whose performance is evaluated on a fair value basis) are measured at FVTPL, including derivative financial assets. On initial recognition, the Group may irrevocably designate a financial asset, which meets the requirements to be measured at amortized cost or at FVOCI, as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss.

4) Impairment of financial assets

The Group recognizes loss allowances for expected credit losses (ECL) on financial assets measured at amortized cost (including cash and cash equivalents, amortized costs, notes and trade receivables, other receivable, guarantee deposit paid and other financial assets), debt investments measured at FVOCI and contract assets.

The Group measures loss allowances at an amount equal to lifetime expected credit loss (ECL), except for the following which are measured as 12-month ECL:

debt securities that are determined to have low credit risk at the reporting date; and
other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition.

Loss allowance for trade receivables and contract assets are always measured at an amount equal to lifetime ECL.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECL, the Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis based on the Group’s historical experience and informed credit assessment as well as forward-looking information.

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The Group assumes that the credit risk on a financial asset has increased significantly if it is more than 90 days past due.

The Group considers it a financial asset to be in default when the financial asset is more than 180 days past due or the debtor is unlikely to pay his credit obligations to the Group in full.

The Group considers a debt security to have low credit risk when its credit risk rating is equivalent to the globally understood definition of ‘investment grade which is considered to be BBB- or higher per Standard & Poor’s, Baa3 or higher per Moody’s or twA or higher per Taiwan Ratings’.

Lifetime ECL are the ECL that result from all possible default events over the expected life of a financial instrument.

12-month ECL are the portion of ECL that result from default events that are possible within the 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).

The maximum period considered when estimating ECL is the maximum contractual period over which the Group is exposed to credit risk.

ECL are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the Group in accordance with the contract and the cash flows that the Group expects to receive). ECL are discounted at the effective interest rate of the financial asset.

At each reporting date, the Group assesses whether financial assets carried at amortized cost and debt securities at FVOCI are credit-impaired. A financial asset is ‘credit-impaired’ when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. Evidence that a financial asset is credit-impaired includes the following observable data:

significant financial difficulty of the borrower or issuer;
a breach of contract such as a default or being more than 180 days past due;
the lender of the borrower, for economic or contractual reasons relating to the borrower's financial difficulty, having granted to the borrower a concession that the lender would not otherwise consider;
it is probable that the borrower will enter bankruptcy or other financial reorganization; or
the disappearance of an active market for a security because of financial difficulties.

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets. For debt securities at FVOCI, the loss allowance is charged to profit or loss and is recognized in other comprehensive income instead of reducing the carrying amount of asset.

The gross carrying amount of a financial asset is written off when the Group has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. For corporate customers, the Group individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. The Group expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Group’s procedures for recovery of amounts due.

5) Derecognition of financial assets

The Group derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Group neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset. The Group enters into transactions whereby it transfers assets recognized in its statement of balance sheet but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognized.

(ii) Financial liabilities and equity instruments

1) Classification of debt or equity

Debt and equity instruments issued by the Group are classified as financial liabilities or equity in accordance with the substance of the contractual arrangements and the definitions of financial liability and an equity instrument.

2) Equity instrument

An equity instrument is any contract that evidences residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued are recognized as the amount of consideration received, less the direct cost of issuing.

3) Treasury shares

When shares recognized as equity are repurchased, the amount of the consideration paid, which includes directly attributable costs, is recognized as a deduction from equity. Repurchased shares are classified as treasury shares. When treasury shares are sold or reissued subsequently, the amount received is recognized as an increase in equity, and the resulting surplus or deficit on the transaction is recognized in capital surplus or retained earnings (if the capital surplus is not sufficient to be written down).

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

4) Financial liabilities

Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in profit or loss. Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on derecognition is also recognized in profit or loss.

5) Derecognition of financial liabilities

The Group derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. The Group also derecognizes a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value.

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

6) Offsetting of financial assets and liabilities

Financial assets and financial liabilities are offset and the net amount presented in the statement of balance sheet when, and only when, the Group currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously.

(h) Inventories

Inventories are measured at the lower of cost and net realizable value. The cost of inventories is calculated using the weighted average method, and includes expenditure incurred in acquiring the inventories, production or conversion costs, and other costs incurred in bringing them to their present location and condition. In the case of manufactured inventories and work in progress, cost includes an appropriate share of production overheads based on normal operating capacity.

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.

(i) Investment in associates

Associates are those entities in which the Group has significant influence, but not control or joint control, over their financial and operating policies.

Investments in associates are accounted for using the equity method and are recognized initially at cost. The cost of the investment includes transaction costs. The carrying amount of the investment in associates includes goodwill arising from the acquisition less any accumulated impairment losses.

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The consolidated financial statements include the Group’s share of the profit or loss and other comprehensive income of those associates, after adjustments to align their accounting policies with those of the Group, from the date on which significant influence commences until the date on which significant influence ceases. The Group recognizes any changes of its proportionate share in the investee within capital surplus, when an associate’s equity changes due to reasons other than profit and loss or comprehensive income, which did not result in changes in actual proportionate share.

Gains and losses resulting from transactions between the Group and an associate are recognized only to the extent of unrelated Group’s interests in the associate.

When the Group’s share of losses of an associate equals or exceeds its interests in an associate, it discontinues recognizing its share of further losses. After the recognized interest is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate.

(j) Investment property

Investment property is property held either to earn rental income or for capital appreciation or for both, but not for sale in the ordinary course of business, use in the production or supply of goods or services, or for administrative purposes. Investment property is measured at cost on initial recognition, and subsequently at cost, less accumulated depreciation and accumulated impairment losses. Depreciation expense is calculated based on the depreciation method, useful life, and residual value which are the same as those adopted for property, plant and equipment.

Any gain or loss on disposal of an investment property (calculated as the difference between the net proceeds from disposal and the carrying amount) is recognized in profit or loss.

Rental income from investment property is recognized as other revenue on a straight-line basis over the term of the lease. Lease incentives granted are recognized as an integral part of the total rental income, over the term of the lease.

(k) Property, plant and equipment

(i) Recognition and measurement

Items of property, plant and equipment are measured at cost, which includes capitalized borrowing costs, less accumulated depreciation and any accumulated impairment losses.

If significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

Any gain or loss on disposal of an item of property, plant and equipment is recognized in profit or loss.

(ii) Subsequent expenditure

Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to the Group.

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(iii) Depreciation

Depreciation is calculated on the cost of an asset less its residual value and is recognized in profit or loss on a straight line basis over the estimated useful lives of each component of an item of property, plant and equipment.

Land is not depreciated.

The estimated useful lives of property, plant and equipment for current and comparative periods are as follows:

1) buildings 3~50 years
2) machinery equipment 3~20 years
3) other facility 2~50 years

Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

(iv) Reclassification to investment property

A property is reclassified to investment property at its carrying amount when the use of the property changes from owner-occupied to investment property.

(l) Leases

At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

(i) As a leasee

The Group recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be reliably determined, the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate.

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Lease payments included in the measurement of the lease liability comprise the following:

1) fixed payments, including in substance fixed payments;
2) variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;
3) amounts expected to be payable under a residual value guarantee; and
4) payments for purchase or termination options that are reasonably certain to be exercised.

The lease liability is measured at amortized cost using the effective interest method. It is remeasured when:

1) there is a change in future lease payments arising from the change in an index or rate; or
2) there is a change in the Group’s estimate of the amount expected to be payable under a residual value guarantee; or
3) there is a change in the lease term resulting from a change of its assessment on whether it will exercise an option to purchase the underlying asset, or
4) there is a change of its assessment on whether it will exercise a purchase, extension or termination option; or
5) there is any lease modifications

When the lease liability is remeasured, other than lease modifications, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or in profit and loss if the carrying amount of the right-of-use asset has been reduced to zero.

When the lease liability is remeasured to reflect the partial or full termination of the lease for lease modifications that decrease the scope of the lease, the Group accounts for the remeasurement of the lease liability by decreasing the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease, and recognize in profit or loss any gain or loss relating to the partial or full termination of the lease.

The Group presents right-of-use assets that do not meet the definition of investment and lease liabilities as a separate line item respectively in the statement of financial position.

(ii) As a lessor

When the Group acts as a lessor, it determines at lease commencement whether each lease is a finance lease or an operating lease. To classify each lease, the Group makes an overall assessment of whether the lease transfers to the lessee substantially all of the risks and rewards of ownership incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then the lease is an operating lease. As part of this assessment, the Group considers certain indicators such as whether the lease is for the major part of the economic life of the asset.

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

When the Group is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. If a head lease is a short-term lease to which the Group applies the exemption described above, then it classifies the sub-lease as an operating lease.

If an arrangement contains lease and non-lease components, the Group applies IFRS15 to allocate the consideration in the contract.

(m) Impairment of non-financial assets

At each reporting date, the Group reviews the carrying amounts of its non-financial assets (other than inventories and deferred tax assets, less costs) to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. Goodwill is tested annually for impairment.

For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or cash-generating units (CGUs).

The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU.

An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its recoverable amount.

Impairment losses are recognized in profit or loss. They are allocated to reduce the carrying amounts of the other assets in the CGU on a pro rata basis.

An impairment loss in respect of goodwill is not reversed. For other assets, an impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.

(n) Provisions

A provision is recognized if, as a result of a past event, the Group has a present obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects the current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognized as finance cost.

(i) Carbon fees

Carbon fees levied in accordance with Taiwan’s Climate Change Response Act and Regulations Governing the Collection of Carbon Fees are recognized when the annual greenhouse gas emissions are probably to exceed the threshold. The provision for the carbon fee is measured based on the volume of greenhouse gas emissions incurred that exceeds the statutory threshold, using the rate expected to be applied, during the reporting period.

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(o) Revenue from contracts with customers

Revenue is measured based on the consideration to which the Group expects to be entitled in exchange for transferring goods or services to a customer. The Group recognizes revenue when it satisfies a performance obligation by transferring control of a good or a service to a customer. The accounting policies for the Group’s main types of revenue are explained below.

(i) Sale of goods

The Group manufactures and sells plastics materials and downstream plastic products. The Group recognizes revenue when control of the products has transferred, being when the products are delivered to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, the acceptance provisions have lapsed, or the Group has objective evidence that all criteria for acceptance have been satisfied.

A receivable is recognized when the goods are delivered as this is the point in time that the Group has a right to an amount of consideration that is unconditional.

(ii) Financing components

The Group does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the group does not adjust any of the transaction prices for the time value of money.

(p) Employee benefits

(i) Defined contribution plans

Obligations for contributions to defined contribution plans are expensed as the related service is provided.

(ii) Defined benefit plans

The Group’s net obligation in respect of defined benefit plans is calculated separately for each the plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.

The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a potential asset for the Group, the recognized asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, consideration is given to any applicable minimum funding requirements.

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognized immediately in other comprehensive income, and accumulated in retained earnings within equity. The Group determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (asset). Net interest expense and other expenses related to defined benefit plans are recognized in profit or loss.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognized immediately in profit or loss. The Group recognizes gains and losses on the settlement of a defined benefit plan when the settlement occurs.

(iii) Other long-term employee benefits

The Group’s net obligation in respect of long-term employee benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods. That benefit is discounted to determine its present value. Remeasurements are recognized in profit or loss in the period in which they arise.

Termination benefits are expensed at the earlier of when the Group can no longer withdraw the offer of those benefits and when the Group recognizes costs for a restructuring. If benefits are not expected to be settled wholly within 12 months of the reporting date, then they are discounted.

(iv) Short-term employee benefits

Short-term employee benefits are expensed as the related service is provided. A liability is recognized for the amount expected to be paid if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

(q) Income taxes

Income taxes comprise current taxes and deferred taxes. Except for expenses related to business combinations or recognized directly in equity or other comprehensive income, all current and deferred taxes are recognized in profit or loss.

Current taxes comprise the expected tax payables or receivables on the taxable profits (losses) for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payables or receivables are the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date.

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Deferred taxes arise due to temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases. Deferred taxes are recognized except for the following:

(i) temporary differences on the initial recognition of assets and liabilities in a transaction that is not a business combination and at the time of the transaction (1) affects neither accounting nor taxable profits (losses) and (2) does not give rise to equal taxable and deductible temporary differences;

(ii) temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that the Group is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and

(iii) taxable temporary differences arising on the initial recognition of goodwill.

Deferred taxes are measured at tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date.

Deferred tax assets and liabilities are offset if the following criteria are met:

(i) the Group has a legally enforceable right to set off current tax assets against current tax liabilities; and

(ii) the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on either:

1) the same taxable entity; or

2) different taxable entities which intend to settle current tax assets and liabilities on a net basis, or to realize the assets and liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

Deferred tax assets are recognized for the carry forward of unused tax losses, unused tax credits, and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date, and are reduced to the extent that it is no longer probable that the related tax benefits will be realized; such reductions are reversed when the probability of future taxable profits improves.

(r) Earnings per share

The Group discloses the Company's basic and diluted earnings per share attributable to ordinary shareholders of the Company. Basic earnings per share is calculated as the profit attributable to ordinary shareholders of the Company divided by the weighted average number of ordinary shares outstanding. Diluted earnings per share is calculated as the profit attributable to ordinary shareholders of the Company divided by the weighted average number of ordinary shares outstanding after adjustment for the effects of all potentially dilutive ordinary shares.

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(s) Operating segments

An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the Group). Operating results of the operating segment are regularly reviewed by the Group’s chief operating decision maker to make decisions about resources to be allocated to the segment and to assess its performance. Each operating segment consists of standalone financial information.

(5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty:

In preparing these consolidated financial statements, management has made judgments and estimates about the future, including climate-related risks and opportunities, that affect the application of the accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis and are consistent with the Group’s risk management and climate-related commitments where appropriate. Revisions to estimates are recognised prospectively in the period of the change and future periods.

Information about judgments made in applying accounting policies that have the most significant effects on the amounts recognized in the consolidated financial statements is as follows:

(a) Judgment of whether the Group has substantive control over its investees

The Group holds 44.62% of the outstanding voting shares of Chun Pin Enterprise Co., Limited. and is not the single largest shareholder of the investee. The Group cannot obtain more than half of the total number of Chun Pin Enterprise company’s directors, and it also cannot obtain more than half of the voting rights at a shareholders’ meeting. Therefore, it is determined that the Group has significant influence on Chun Pin Enterprise company.

The Group holds 40% of preferred stock and 50% of common stock of Foremost-Oceans NueTeq, Ltd., and is not the single largest shareholder of the investee. The Group cannot obtain more than half of the total number of Foremost-Oceans NueTeq, Ltd.’s directors, and it also cannot obtain more than half of the voting rights at a shareholders’ meeting. Therefore, it is determined that the Group has significant influence on Foremost-Oceans NueTeq, Ltd..

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within to the carrying amounts of assets and liabilities. the next financial year is as follows:

(a) Valuation of inventory

Inventories are stated at the lower of cost or net realizable value. The Group estimates the net realizable value of inventory for normal waste, obsolescence and unmarketable items at the end of reporting period and then writes down the cost of inventories to net realizable value. The net realizable value of the inventory is determined mainly based on the assumptions of future demand within a specific time horizon. For the estimation of the valuation of inventory, please refer to note 6(f).

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The Group’s accounting policies include measuring financial and non-financial assets and liabilities at fair value through profit or loss. The Group’s financial instrument valuation group conducts independent verification on fair value by using data sources that are independent, reliable, and representative of exercise prices. This financial instrument valuation group also periodically adjusts valuation models, conducts back testing, renews input data for valuation models, and makes all other necessary fair value adjustments to assure the rationality of fair value.

The Group strives to use market observable inputs when measuring assets and liabilities. Different levels of the fair value hierarchy to be used in determining the fair value of financial instruments are as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: inputs for the assets or liability that are not based on observable market data.

Please refer to Note 6(x) “Financial instruments” for assumptions used in measuring fair value.

(6) Explanation of significant accounts

(a) Cash and cash equivalents

	December 31, 2025	December 31, 2024
Revolving funds and cash in hand	$ 712	769
Demand deposits and check deposits	370,131	693,631
Time deposits	67,574	-
Cash and cash equivalents in the consolidated statement of cash flows	$ 438,417	694,400

Please refer to note 6(x) for the exchange rate risk, interest rate risk, and sensitivity analysis of the financial assets and liabilities of the Group.

Time deposits with maturities within three months or less which meet the above definition and are held for the purpose of meeting short term cash commitments rather than for investment or other purposes, and are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value should be recognized as cash equivalents. Time deposits with maturities over three months are accounted for under current financial assets at amortized cost, please refer 6(d) for details.

The cash and cash equivalents on December 31, 2025 and 2024, including deposits held by subsidiaries in China, were $161,366 thousand and $367,944 thousand, respectively. It must be processed in accordance with the procedures prescribed by the foreign exchange control laws and regulations, and the deposit can only be remitted.

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

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

	December 31, 2025	December 31, 2024
Current financial assets mandatorily measured at fair value through profit or loss:
Stocks listed on domestic markets	$ 304,683	402,135
Fund investment	50,245	47,651
Structured deposits	243,546	-
Subtotal	598,474	449,786
Non-current financial assets mandatorily measured at fair value through profit or loss
Stocks listed on domestic markets	14,238	15,139
Total	$ 612,712	464,925

The financial assets at fair value through profit or loss of the Group were not pledged as collateral as of December 31, 2025 and 2024.

	December 31, 2025	December 31, 2024
Equity investments at fair value through other comprehensive income:
Stock unlisted on domestic markets—Taiwan VCM Corporation	$ 324,713	333,905
Stock unlisted on domestic markets—Others	121,192	134,756
Stock unlisted on foreign markets	6,890	6,890
Total	$ 452,795	475,551

(i) Equity investments at fair value through other comprehensive income

The Group designated the investments shown above as equity securities at fair value through other comprehensive income because these equity securities represent those investments that the Group intends to hold for the long-term strategic purposes.

There were no disposals of strategic investments and transfers of any cumulative gain or loss within equity relating to these investments as of December 31, 2025 and 2024.

(ii) For credit risk and market risk, please refer to note 6(x).

(iii) The financial assets at fair value through other comprehensive income of the Group were not pledged as collateral as of December 31, 2025 and 2024.

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(d) Financial assets measured at amortized cost

	December 31, 2025	December 31, 2024
Domestic and foreign time deposit-current	$ -	44,770
Domestic and foreign time deposit-non-current	$ 44,980	-

The Group has assessed that these financial assets are held-to-maturity to collect contractual cash flows, which consist solely of payments of principal and interest on principal amount outstanding. Therefore, these investments were classified as financial assets measured at amortized cost.

(i) During the years ended December 31, 2025 and 2024, the Group held domestic and foreign time deposits, with the range of interest rates at 1.85% and 3.00%, which mature from September 2027 and from September 2025 to November 2025, respectively.

(ii) The financial assets measured at amortized cost of the Group were not pledged as collateral as of December 31, 2025 and 2024.

(e) Net notes receivable and trade receivables

	December 31, 2025	December 31, 2024
Notes receivable from operating activities	$ 22,624	28,458
Trade receivables	434,281	585,696
Less: Loss allowance	(8,769)	(4,732)
	$ 448,136	609,422

The Group applies the simplified approach to provide for its expected credit losses, i.e. the use of lifetime expected loss provision for all receivables. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due, as well as the incorporated forward-looking information, including macroeconomic and relevant industry information. The loss allowance provisions were determined as follows:

	December 31, 2025
	Gross carrying amount	Weighted-average loss rate	Loss allowance provision
Current	$ 399,793	-	-
1 to 180 days past due	54,894	8%~13%	6,551
More than 180 days past due	2,218	100%	2,218
	$ 456,905		8,769

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

	December 31, 2024
	Gross carrying amount	Weighted-average loss rate	Loss allowance provision
Current	$ 554,810	-	-
1 to 180 days past due	57,126	4%~6%	2,514
More than 180 days past due	2,218	100%	2,218
	$ 614,154		4,732

The movement in the allowance for notes and trade receivables were as follows:

	2025	2024
Balance at January 1	$ 4,732	4,761
Impairment losses recognized (reversed)	4,594	(81)
Amounts written off	(721)	-
Foreign exchange gains	164	52
Balance at December 31	$ 8,769	4,732

The aforementioned notes and trade receivables of the Group were not pledged as collateral as of December 31, 2025 and 2024.

(f) Inventories

	December 31, 2025	December 31, 2024
Manufacturing:
Raw materials	$ 257,442	224,466
Work in progress	27,675	28,846
Finished goods	168,688	199,346
Total	$ 453,805	452,658

The Group’s relevant inventory details recognized in operating costs in 2025 and 2024 are as follows:

	2025	2024
Inventory that has been sold	$ 3,101,041	4,149,617
Write-down of inventories (Reversal of write-downs)	4,464	(8,616)
Idle capacity	224,557	180,998
Revenue from sale of scraps and others	5,485	2,320
	$ 3,335,547	4,324,319

During the year ended December 31, 2024, the increase in market demand (in accordance with the actual situation) led to the reversal of write-downs of inventories.

As of December 31, 2025 and 2024, the Group did not provide any inventories as collateral for its loans.

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(g) Investments accounted for using equity method

A summary of the Group’s financial information for investments accounted for using the equity method at the reporting date is as follows:

	December 31, 2025	December 31, 2024
Associates	$ 473,142	481,382

(i) Associates

Associates which are material to the Group consisted of the followings:

Name of Associates	Nature of Relationship with the Group	Main operating location/ Registered country of the Company	Proportion of shareholding and voting rights		Note
			December 31, 2025	December 31, 2024
Chun Pin Enterprise Co., Limited.	Wholesale of chemical feedstock and products and warehousing	Taiwan	44.62 %	44.62 %
Foremost-Oceans NueTeq, Ltd.	Wholesale of petrochemical materials and manufacturing	Taiwan	40.07% 、 50.00%	40.07% 、 50.00%	(Note1)

Note 1: The Group held 50% voting ordinary shares and 40% non-voting preference shares in Foremost-Oceans NueTeq, and the percentage of ownership interest was 40.07%.

The following consolidated financial information of significant associates has been adjusted according to individually prepared IFRS financial statements of these associate.

1) Chun Pin Enterprise Co., Limited.

	December 31, 2025	December 31, 2024
Current assets	$ 914,994	906,418
Non-current assets	227,107	241,256
Current liabilities	(66,216)	(41,248)
Non-current liabilities	(22,412)	(36,427)
Net assets	$ 1,053,473	1,069,999

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

	2025	2024
Operating revenue	$ 473,845	496,130
Profit from continuing operations	211,313	250,078
Other comprehensive income	-	-
Total comprehensive income	$ 211,313	250,078
	2025	2024
Share of net assets of associates as of January 1	$ 477,384	454,029
Comprehensive income attributable to the Group	81,773	111,573
Dividends received from associates	(89,146)	(88,218)
Share of net assets of associates as of December 31	$ 470,011	477,384

2) Foremost-Oceans NueTeq, Ltd.

	December 31, 2025	December 31, 2024
Current assets	$ 1,676	1,791
Non current assets	6,163	8,217
Current liabilities	(25)	(31)
Net assets	$ 7,814	9,977
	2025	2024
Operating revenue	$ -	-
Loss from continuing operations	(2,163)	(2,176)
Other comprehensive income	-	-
Total comprehensive income	$ (2,163)	(2,176)
	2025	2024
Share of net assets of associates as of January 1	$ 3,998	4,870
Comprehensive income attributable to the Group	(867)	(872)
Share of net assets of associates as of December 31	$ 3,131	3,998

(ii) Guarantee

As of December 31, 2025 and 2024, the Group did not provide any investment accounted for using equity method as collaterals for its loans.

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(h) Property, plant and equipment

The cost, depreciation, and impairment of the property, plant and equipment of the Group for the years ended December 31, 2025 and 2024, were as follows:

	Lands	Buildings and constructions	Machinery and equipments	Other facilities	Construction in progress	Total
Cost or deemed cost:
Balance on January 1, 2025	$ 1,531,057	1,435,931	2,488,902	1,674,322	52,460	7,182,672
Additions	-	680	15,216	55,650	44,759	116,305
Transfer from construction in progress	-	1,616	9,769	36,556	(47,941)	-
Disposal	-	-	(8,455)	(7,997)	-	(16,452)
Effect of movement in exchange rates	-	846	2,195	269	-	3,310
Balance on December 31, 2025	$ 1,531,057	1,439,073	2,507,627	1,758,800	49,278	7,285,835
Balance on January 1, 2024	$ 1,483,366	1,422,117	2,420,729	1,613,130	71,481	7,010,823
Additions	-	-	1,679	819	116,348	118,846
Transfer from construction in progress	-	7,890	55,817	71,184	(134,891)	-
Reclassification to prepayments for equipment	-	-	-	-	(485)	(485)
Reclassification from investment property	47,691	-	-	-	-	47,691
Disposal	-	-	(3,798)	(12,656)	-	(16,454)
Effect of movement in exchange rates	-	5,924	14,475	1,845	7	22,251
Balance on December 31, 2024	$ 1,531,057	1,435,931	2,488,902	1,674,322	52,460	7,182,672
Depreciation and impairments losses:
Balance on January 1, 2025	$ -	541,239	1,992,300	1,378,113	-	3,911,652
Depreciation for the year	-	33,663	81,075	97,431	-	212,169
Disposal	-	-	(8,438)	(7,997)	-	(16,435)
Effect of movement in exchange rates	-	964	1,910	272	-	3,146
Balance on December 31, 2025	$ -	575,866	2,066,847	1,467,819	-	4,110,532
Balance on January 1, 2024	$ -	503,572	1,902,032	1,301,463	-	3,707,067
Depreciation for the year	-	33,559	81,784	87,538	-	202,881
Disposal	-	-	(3,754)	(12,655)	-	(16,409)
Effect of movement in exchange rates	-	4,108	12,238	1,767	-	18,113
Balance on December 31, 2024	$ -	541,239	1,992,300	1,378,113	-	3,911,652
Carrying amount:
Balance on December 31, 2025	$ 1,531,057	863,207	440,780	290,981	49,278	3,175,303
Balance on January 1, 2024	$ 1,483,366	918,545	518,697	311,667	71,481	3,303,756
Balance on December 31, 2024	$ 1,531,057	894,692	496,602	296,209	52,460	3,271,020

As of December 31, 2025 and 2024, the property, plant and equipment of the Group had been pledged as collateral for long-term borrowings and credit lines; please refer to note 8.

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(i) Right-of-use-assets

The Group leases many assets including land and buildings and vehicles. Information about leases for which the Group as a lessee was presented below:

	Lands	Buildings and constructions	Other facilities	Total
Cost:
Balance on January 1, 2025	$ 32,705	74,459	95,477	202,641
Additions	11,583	-	-	11,583
Decrease	(9,653)	(2,382)	-	(12,035)
Effect of movement in exchange rates	109	128	-	237
Balance on December 31, 2025	$ 34,744	72,205	95,477	202,426
Balance on January 1, 2024	$ 31,997	102,571	95,918	230,486
Additions	9,653	74,228	-	83,881
Decrease	(9,702)	(104,787)	(441)	(114,930)
Effect of movement in exchange rates	757	2,447	-	3,204
Balance on December 31, 2024	$ 32,705	74,459	95,477	202,641
Accumulated depreciation and impairment losses:
Balance on January 1, 2025	$ 5,730	5,885	58,346	69,961
Depreciation for the year	2,541	14,540	15,914	32,995
Decrease	(3,862)	(132)	-	(3,994)
Effect of movement in exchange rates	43	386	-	429
Balance on December 31, 2025	$ 4,452	20,679	74,260	99,391
Balance on January 1, 2024	$ 12,763	46,655	42,733	102,151
Depreciation for the year	2,560	13,410	16,054	32,024
Decrease	(9,701)	(52,770)	(441)	(62,912)
Effect of movement in exchange rates	108	(1,410)	-	(1,302)
Balance on December 31, 2024	$ 5,730	5,885	58,346	69,961
Carrying amount:
Balance on December 31, 2025	$ 30,292	51,526	21,217	103,035
Balance on January 1, 2024	$ 19,234	55,916	53,185	128,335
Balance on December 31, 2024	$ 26,975	68,574	37,131	132,680

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(j) Investment property

The cost, depreciation, and impairment of the investment property of the Group for the years ended December 31, 2025 and 2024, were as follows:

	Land	Buildings	Total
Cost or deemed cost:
Balance on January 1, 2025	$ 5,075,757	18,390	5,094,147
Additions	59,258	-	59,258
Balance on December 31, 2025	$ 5,135,015	18,390	5,153,405
Balance on January 1, 2024	$ 5,100,829	18,390	5,119,219
Additions	59,082	-	59,082
Disposal	(36,463)	-	(36,463)
Reclassification to property, plant and equipment	(47,691)	-	(47,691)
Balance on December 31, 2024	$ 5,075,757	18,390	5,094,147
Accumulated depreciation and impairment losses:
Balance on January 1, 2025	$ 26,667	6,689	33,356
Depreciation for the year	-	1,244	1,244
Balance on December 31, 2025	$ 26,667	7,933	34,600
Balance on January 1, 2024	$ 26,667	5,445	32,112
Depreciation for the year	-	1,244	1,244
Balance on December 31, 2024	$ 26,667	6,689	33,356
Carrying amount:
Balance on December 31, 2025	$ 5,108,348	10,457	5,118,805
Balance on January 1, 2024	$ 5,074,162	12,945	5,087,107
Balance on December 31, 2024	$ 5,049,090	11,701	5,060,791
Fair value
Balance on December 31, 2025			$ 19,887,922
Balance on December 31, 2024			$ 19,813,876

Part of the land held by the Group is agricultural land, which cannot be transferred in the name of the Group and is temporarily registered in the name of other. The Group also sets a mortgage on the Group, moreover, the consolidated company is currently actively applying to the relevant authorities for a change in land-use classification. Upon completion of the land-use reclassification, title to the land will be transferred to the consolidated company. As of December 31, 2025 and 2024, respectively, the carrying amount of the aforementioned land was $84,803 thousand in both periods.

As of December 31, 2025 and 2024, the fair value of the Group's investment property was evaluated based on the recent market price recorded in the Actual Price Registration of Real Estate Transaction.

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Investment property includes several parcels of land leased to other parties. Each lease contract includes an initial non-cancellable lease period between 3 and 15 years, after which lease periods are determined by negotiation with lessees, and no contingent rents are charged. Please refer to note 6(p) for related information.

For the years ended December 31, 2025 and 2024, the capitalized borrowing costs related to the acquisition of investment real estate were $59,258 thousand and $59,082 thousand, and the capitalization interest rates were 1.91% and 1.93%.

As of December 31, 2025 and 2024, investment property of the Group had been pledged as collateral for long-term borrowings and credit lines, please refer to note 8.

(k) Other current assets and other non current assets

The other current assets others and other non current assets of the Group were as follows:

	December 31, 2025	December 31, 2024
Other current assets
Other receivables	$ 10,482	11,204
Current tax assets	2,130	1,818
Prepayments	23,031	46,333
Others	251	1,773
	$ 35,894	61,128
	December 31, 2025	December 31, 2024
Other non-current assets
Deferred tax assets	$ 19,533	18,055
Others	5,753	9,958
	$ 25,286	28,013

As of December 31, 2025 and 2024, the Group did not provide any other current assets and other non-current assets as collateral for its loans.

(l) Other current liabilities and other non current liabilities

The other current liabilities of the Group were as follows:

	December 31, 2025	December 31, 2024
Lease liabilities-current	$ 31,080	30,421
Contract liabilities-current	11,850	11,727
Others	1,931	2,110
	$ 44,861	44,258

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The other non current liabilities of the Group were as follows:

	December 31, 2025	December 31, 2024
Lease liabilities-non-current	$ 54,922	82,057
Employee benefits provisions	6,673	13,921
Guarantee deposits received	5,181	5,181
	$ 66,776	101,159

(m) Short-term borrowings

The short-term borrowings of the Group were summarized as follows:

	December 31, 2025	December 31, 2024
Unsecured bank loans	$ 100,000	100,000
Secured bank loans	400,000	360,000
Total	$ 500,000	460,000
Unused short-term credit line	$ 1,050,000	990,000
Range of interest rates	1.85%~1.88%	1.85%~2.05%

For the collateral for short-term borrowings, please refer to note 8.

(n) Long-term borrowings

	December 31, 2025
	Currency	Rate	Maturity year	Amount
Secured bank loans	NTD	1.83%~1.92%	116~117	$ 3,652,014
Less: current portion				-
Total				$ 3,652,014
Unused long-term credit lines				$ 2,247,986
	December 31, 2024
	Currency	Rate	Maturity year	Amount
Secured bank loans	NTD	1.81%~1.92%	115~120	$ 3,661,014
Total				$ 3,661,014
Unused long-term credit lines				$ 2,238,986

For the collateral for long-term borrowings, please refer to note 8.

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(o) Leases Liabilities

The lease liabilities of the Group’s were as follows:

	December 31, 2025	December 31, 2024
Current	$ 31,080	30,421
Non-current	$ 54,922	82,057

For maturity analysis, please refer to note 6 (x).

The amounts recognized in profit or loss was as follows:

	2025	2024
Interest on lease liabilities	$ 2,446	837
Expenses relating to short-term leases	$ -	96
Expenses relating to leases of low-value assets, excluding short-term leases of low-value assets	$ 1,251	9

The amounts recognized in the statement of cash flows for the Group was as follows:

	2025	2024
Total cash outflow for leases	$ 33,497	28,460

The Group leases land, houses and buildings, and raw material storage tanks. The leases run for three to six years. Some leases include an option to renew the lease for an additional period of the same duration after the end of the contract term.

Some leases provide for additional rent payments that are based on changes in local price indices. Some also require the Group to make payments that relate to the property taxes levied on the lessor and insurance payments made by the lessor; these amounts are generally determined annually.

In addition, the Group leases other equipment for a period of one to three years. Such leases are low-value leases and the Group chooses to apply the exemption provisions and not recognize the related right-of-use assets and lease liabilities.

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(p) Operating lease

The Group leases out its investment property and other facilities. The Group has classified these leases as operating leases.

A maturity analysis of lease payments, showing the undiscounted lease payments to be received after the reporting date are as follows:

	December 31, 2025	December 31, 2024
Less than one year	$ 9,846	9,727
One and two years	10,076	9,846
Two and three years	10,240	10,076
Three and four years	10,479	10,240
Four and five years	10,650	10,479
More than five years	38,108	48,758
Total undiscounted lease payment	$ 89,399	99,126

Rental income from investment properties was $12,247 thousand and $12,061 thousand in 2025 and 2024, respectively.

(q) Employee benefits

(i) Defined benefit plans

Reconciliation of defined benefit obligation at present value and plan asset at fair value are as follows:

	December 31, 2025	December 31, 2024
Present value of the defined benefit obligations	$ 285,280	297,532
Fair value of plan assets	(262,345)	(260,695)
Net defined benefit liabilities	$ 22,935	36,837

The Group’s employee benefit liabilities were as follows:

	December 31, 2025	December 31, 2024
Long-term vacation liability	$ 13,332	13,620
Cash-settled share-based payment liability	-	-
Total employee benefit liabilities	$ 13,332	13,620

The Group makes defined benefit plan contributions to the pension fund account with Bank of Taiwan that provides pensions for employees upon retirement. Plans (covered by the Labor Standards Law) entitle a retired employee to receive retirement benefits based on years of service and average monthly salary for the six months prior to retirement.

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

1) Composition of plan assets

The Group allocates pension funds in accordance with the Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund, and such funds are managed by the Bureau of Labor Funds, Ministry of Labor. With regard to the utilization of the funds, minimum earnings shall be no less than the earnings attainable from two-year time deposits with interest rates offered by local banks.

The Group’s Bank of Taiwan labor pension reserve account balance amounted to $262,345 thousand as of December 31, 2025. For information on the utilization of the labor pension fund assets, including the asset allocation and yield of the fund, please refer to the website of the Bureau of Labor Funds, Ministry of Labor.

2) Movements in present value of the defined benefit obligations

The movements in present value of defined benefit obligations for the Group were as follows:

	2025	2024
Defined benefit obligation at January 1	$ 297,532	347,562
Current service costs and interest income	5,084	5,676
Remeasurements loss(gain):
—Experience adjustment	17,469	(3,784)
—Financial assumptions	2,087	(2,268)
Contributions by plan participants	(10,023)	(16,778)
Benefits paid	(26,869)	(32,876)
Defined benefit obligations at December 31	$ 285,280	297,532

3) Movements of defined benefit plan assets

The movements in the present value of the defined benefit plan assets for the Group were as follows:

	2025	2024
Fair value of plan assets at January 1	$ (260,695)	(260,907)
Interest income	(3,513)	(3,135)
Remeasurements of defined benefit liabilities (assets):
—Return on plan assets excluding interest income	(19,278)	(23,632)
Contribution paid by employer	(5,728)	(5,897)
Benefits paid	26,869	32,876
Fair value of plan assets at December 31	$ (262,345)	(260,695)

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

4) Expenses recognized in profit or loss

The expenses recognized in profit or loss for the Group were as follows:

	2025	2024
Current service costs	$ 1,163	1,495
Net interest of net liabilities for defined benefit obligations	408	1,046
	$ 1,571	2,541
	2025	2024
Operating cost	$ 1,184	1,792
Selling expenses	17	37
Administration expenses	365	701
Research and development expenses	5	11
	$ 1,571	2,541

5) Remeasurement of net defined benefit liability (asset) recognized in other comprehensive income

The Group’s remeasurement of the net defined benefit liability (asset) recognized in other comprehensive income for the years ended December 31, 2025 and 2024, was as follows:

	2025	2024
Accumulated amount at January 1	$ 80,975	110,933
Recognized during the period	(8,140)	(29,958)
Accumulated amount at December 31	$ 72,835	80,975

6) Actuarial assumptions

The principal actuarial assumptions at the reporting date were as follows:

	2025	2024
Discount rate	1.25 %	1.38 %
Future salary increase rate	2.25 %	2.25 %

The expected allocation payment to be made by the Group to the defined benefit plans for the one-year period after the reporting date for 2025 is $5,720 thousand.

The weighted-average lifetime of the defined benefits plans for the years ended December 31, 2025 is 5.9 years.

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

7) Sensitivity analysis

When calculating and determining the present value of welfare obligations, the Group must use judgments and estimates to determine relevant actuarial assumptions on the balance sheet date, including discount rates, employee turnover rates, and future salary changes. Any change in actuarial assumptions may materially affect the amount of the Group's determined welfare obligations.

If the actuarial assumptions had changed, the impact on the present value of the defined benefit obligation at December 31, 2025 and 2024 shall be as follows:

	Impact on defined benefit obligation
	Increased 0.25%	Decreased 0.25%
December 31, 2025
Discount rate	(4,148)	4,256
Future salary increasing rate	4,141	(4,057)
December 31, 2024
Discount rate	(4,450)	4,566
Future salary increasing rate	4,446	(4,355)

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown above. The method used in the sensitivity analysis is consistent with the calculation of pension liabilities in the balance sheets.

There is no change in the method and assumptions used in the preparation of sensitivity analysis for 2025 and 2024.

(ii) Defined contribution plans

The Company and consolidated entities set up Taiwan allocates 6% of each employee's monthly wages to the labor pension personal account at the Bureau of Labor Insurance in accordance with the provisions of the Labor Pension Act. The consolidated entities set up Mainland China contributes and deposits insurance money to its employee's endowment insurance account in accordance with the regulations of their respective countries. Under these defined contribution plans, the Company allocates a fixed amount to the Bureau of Labor Insurance without additional legal or constructive obligation.

The pension costs incurred from the contributions to the Bureau of the Labor Insurance amounted to $16,995 thousand and $16,621 thousand for the years ended December 31, 2025 and 2024, respectively.

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(r) Income tax

The components of income tax in the years 2025 and 2024 were as follows:

	2025	2024
Current tax expense
Current period	17,801	17,681
Adjustments for prior periods	(8,233)	2,588
Subtotal	9,568	20,269
Deferred tax income
Origination and reversal of temporary differences	111,480	100,983
Tax expense	$ 121,048	121,252

Reconciliation of income tax and (loss)profit before tax for 2025 and 2024 is as follows:

	2025	2024
(Loss)Profit excluding income tax	$ (154,501)	288,186
Income tax using the Company’s domestic tax rate	(72,835)	52,803
Tax-exempt income	43,180	(45,383)
Non-deductible expenses	933	788
Recognition of previously unrecognized tax losses	(15)	(7)
Current-year losses for which no deferred tax asset was recognized	32,051	14,434
Changes in unrecognized temporary differences	(2,551)	(7,207)
Income tax effects of deferred tax liabilities	123,000	100,000
Change in provision in prior periods	(8,233)	2,588
Additional tax on undistributed earning tax	5,775	2,298
Others	(257)	938
Income tax expense	$ 121,048	121,252

(i) Deferred tax assets and liabilities

1) Unrecognized deferred tax liabilities

Deferred tax liabilities have not been recognized is respect of the following items:

	December 31, 2025	December 31, 2024
Unrecognized deferred tax liabilities	$ -	-

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

2) Unrecognized deferred tax assets

Deferred tax assets have not been recognized is respect of the following items:

	December 31, 2025	December 31, 2024
Tax effect of deductible Temporary Differences	$ 380,715	383,266
The carryforward of unused tax losses	77,914	66,488
Total	$ 458,629	449,754

The deductible temporary differences are mainly the share of overseas investment losses and deferred benefits recognized by the equity method.

The R.O.C. Income Tax Act and P.R.C. Enterprise Income Tax Act allows net losses, as assessed by the tax authorities, to offset taxable income over a period of ten years and five years for local tax reporting purposes, respectively. Deferred tax assets have not been recognized in respect of these items because it is less than more likely that future taxable profit will be available against which the Group can utilize the benefits therefrom.

As of December 31, 2025, the company and domestic subsidiaries unused tax losses for have not recognized deferred tax assets. The deduction deadline are as follows:

Consolidated entities	Year of loss	Unused tax loss	Expiry date
Fine Environment Technologies Co., Ltd.	2017 (Assessment amount)	$ 424	2027
Fine Environment Technologies Co., Ltd.	2018 (Assessment amount)	856	2028
Ocean Plastics Co., Ltd.	2018 (Assessment amount)	52,882	2028
Ocean Plastics Co., Ltd.	2019 (Assessment amount)	99,314	2029
Fine Environment Technologies Co., Ltd.	2019 (Assessment amount)	41	2029
Fine Environment Technologies Co., Ltd.	2020 (Assessment amount)	15	2030
Fine Environment Technologies Co., Ltd.	2021 (Assessment amount)	29	2031
Fine Environment Technologies Co., Ltd.	2022 (Assessment amount)	21	2032
Ocean Plastics Co., Ltd.	2022 (Assessment amount)	27,272	2032
Chang Xin Co., Ltd.	2022 (Assessment amount)	15,570	2032
Chang Xin Co., Ltd.	2023 (Reported amount)	43,837	2033
Chang Xin Co., Ltd.	2024 (Reported amount)	38,708	2034
Chang Xin Co., Ltd.	2025 (Estimated amount)	30,907	2035
Total		$ 309,876

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

As of December 31, 2025, the deduction period of the subsidiaries in Mainland China unused tax losses for which no deferred tax assets were recognized are as follows:

Year of loss	Unused tax loss	Expiry date
2021	$ 3,191	2026
2022	9,271	2027
2023	14,308	2028
2024	11,397	2029
2025	25,588	2030
Total	$ 63,755

3) Recognized deferred tax assets and liabilities

Deferred tax assets:

	Unrealized loss on valuation of inventories	Other	Total
Balance at January 1, 2025	$ 10,298	7,757	18,055
Recognized in profit or loss	1,576	(98)	1,478
Balance at December 31, 2025	$ 11,874	7,659	19,533
Balance at January 1, 2024	$ 12,888	16,467	29,355
Recognized in profit or loss	(2,590)	(8,710)	(11,300)
Balance at December 31, 2024	$ 10,298	7,757	18,055

Deferred tax liabilities:

	Reserve for land revaluation increment tax	Difference of property plant and equipment in depreciation life	Other	Total
Balance at January 1, 2025	$ 680,756	97,792	11,931	790,479
Recognized in profit or loss	123,000	(7,083)	(2,959)	112,958
Balance at December 31, 2025	$ 803,756	90,709	8,972	903,437
Balance at January 1, 2024	$ 580,756	106,061	13,979	700,796
Recognized in profit or loss	100,000	(8,269)	(2,048)	89,683
Balance at December 31, 2024	$ 680,756	97,792	11,931	790,479

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The tax returns for the company and domestic subsidiaries were assessed by the Taipei National Tax Administration for the years through 2023.

The tax returns for the subsidiaries in China were declared to local tax authority for the years through 2024.

(s) Capital and other equity

As of December 31, 2025 and 2024, the number of authorized ordinary shares were 4,000,000 thousand shares with par value of $10 per share, and $227,228 thousand of ordinary shares were issued. All issued shares were paid up upon issuance.

(i) Capital surplus

The balances of capital surplus were as follows:

	December 31, 2025	December 31, 2024
Share premium	$ 680	680
Treasury share transactions	7,112	7,112
Adjustment of capital surplus for Company’s cash dividends received by subsidiaries	16,226	13,740
Total	$ 24,018	21,532

According to the R.O.C. Company Act, capital surplus can only be used to offset a deficit, and only the realized capital surplus can be used to increase the common stock or be distributed as cash dividends. The aforementioned realized capital surplus includes capital surplus resulting from premium on issuance of capital stock and earnings from donated assets received. According to the Regulations Governing the Offering and Issuance of Securities by Securities Issuers, capital increases by transferring capital surplus in excess of par value should not exceed 10% of the total common stock outstanding.

(ii) Retained earnings

The Company's article of incorporation stipulate that Company's annual net profit should first pay taxes, offset the prior years' deficits, and then allocate 10% thereof as legal reserve. However where such legal reserve amounts reach to the total authorized capital, this provision shall not apply. In consideration of the operation needs and laws and regulations, the Company shall allocate special reserve. If there are remaining profits, the profits shall be added with any accumulated unappropriated earnings from priors years, and the Board of Directors shall propose earning distribution plan for the resolution of the general meeting of stockholders.

The company's dividend policy depends on the current year's profit and the amount of dividends that can be paid is distributed in three ways: cash dividends, surplus capital increase and capital surplus capital increase. The distributable surplus for the current year is deducted from the statutory surplus reserve and special surplus reserve. The distribution shall not be less than 20%. However, if the company has a major investment plan or the need to improve its financial structure, the cash dividends may be changed to capital increase from surplus or capital reserve to increase capital. However, the minimum cash distribution ratio shall not be less than 10% of the total dividends allotted.

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

1) Legal reserve

When a company incurs no loss, it may, pursuant to a resolution by a shareholders’ meeting, distribute its legal reserve by issuing new shares or by distributing cash, and only the portion of legal reserve which exceeds 25% of capital may be distributed.

2) Special reserve

The Group applied the exemptions at first-time adoption of IFRS Accounting Standards, and increased its retained earnings by $2,992,372 thousand, which resulted from unrealized revaluation increments, exchange differences on translation of foreign financial statements, and the fair value of investment property being used as the cost on initial recognitions at the transition date, in accordance with the requirements issued by the FSC, a portion of current-period earnings and undistributed prior-period earnings shall be reclassified as special earnings reserve during earnings distribution. The amount to be reclassified should equal the current-period total net reduction of other shareholders’ equity. Similarly, a portion of undistributed prior-period earnings shall be reclassified as special earnings reserve (and does not qualify for earnings distribution) to account for cumulative changes to other shareholders’ equity pertaining to prior periods. Amounts of subsequent reversals pertaining to the net reduction of other shareholders’ equity shall qualify for additional distributions. As of December 31, 2025 and 2024, the balance of special earnings reserve were $2,978,245 thousand.

If the subsidiary continues to hold the stocks of its parent company in the end of the period, with a market value lower than the book value, the Company shall allocate its special reserve, pro-rata to the shareholding percentage thereof, in an amount equals to the difference between the market value and the book value; also, the special reserve may not be distributed. If the market value subsequently increases, the Company may reverse the amount of special reserve, pro-rata to the shareholding percentage, corresponding to the amount by which the value has increased.

3) Earnings distribution

The amounts of cash dividends on the 2024 and 2023 earnings distribution had been approved during the board meeting and shareholders’ meeting on March 7, 2025 and March 8, 2024, as well as the shareholders’ meeting on June 4, 2025 and May 31, 2024, respectively. The relevant dividend distributions to shareholders were as follows:

	2024		2023
	Amount per share	Amount	Amount per share	Amount
Dividends distributed to ordinary shareholders:
Cash	$ 0.38	86,347	0.40	90,891

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(iii) Treasury shares

As of December 31, 2025, and 2024. the company's treasury stock balance is $36,189 thousand.

Before the amendment of the company law on November, 2001, the company's subsidiaries, Chang Xin Co., Ltd. and Hong Da Investment Co., Ltd., acquired 2,939 thousand and 3,604 thousand of the Company's shares respectively.

In accordance with the requirements of Securities and Exchange Act, treasury shares held by the Company should not be pledged, and do not hold any shareholder rights before their transfer.

(t) Earnings per share

The details on the calculation of basic earnings per share and diluted earnings per share of the Group as follows:

	2025	2024
Basic earnings per share
(Loss)Profit attributable to ordinary shareholders of the Company	$ (275,549)	166,934
Weighted average number of ordinary shares (thousand share)	220,686	220,686
Basic earnings per share (NT dollars)	$ (1.25)	0.76
Diluted earnings per share
(Loss)Profit attributable to ordinary shareholders of the Company	$ (275,549)	166,934
Weighted average number of ordinary shares (thousand share)	220,686	220,686
Effects of dilutive potential ordinary shares
Effect of employee share bonus	-	111
Weighted average number of ordinary shares (diluted) (thousand share)	220,686	220,797
Diluted earnings per share (NT dollars)	$ (1.25)	0.76

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(u) Revenue from contracts with customers

(i) Details of revenue

	2025
	Taiwan	China	Total
Primary geographical markets:
Taiwan	$ 1,503,550	28,631	1,532,181
India	702,350	-	702,350
Japan	156,089	-	156,089
United States	284,168	300,190	584,358
China	17,374	276,124	293,498
Other	281,738	44,672	326,410
	$ 2,945,269	649,617	3,594,886
Major products:
Plastic materials	$ 1,282,958	-	1,282,958
Plastic products	1,650,896	649,617	2,300,513
Other	11,415	-	11,415
	$ 2,945,269	649,617	3,594,886
	2024
	Taiwan	China	Total
Primary geographical markets:
Taiwan	$ 1,656,234	19,812	1,676,046
India	1,057,229	-	1,057,229
Japan	347,838	-	347,838
United States	313,096	383,701	696,797
China	52,470	254,135	306,605
Other	548,237	50,418	598,655
	$ 3,975,104	708,066	4,683,170
Major products:
Plastic materials	$ 2,234,934	-	2,234,934
Plastic products	1,726,915	708,066	2,434,981
Other	13,255	-	13,255
	$ 3,975,104	708,066	4,683,170

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(ii) Contract balances

	December 31, 2025	December 31, 2024	January 1, 2024
Notes and trade receivables	$ 456,905	614,154	599,667
Less: allowance for impairment	(8,769)	(4,732)	(4,761)
Total	$ 448,136	609,422	594,906
	December 31, 2025	December 31, 2024	December 31, 2024
Contract liabilities (presented in other current liabilities)	$ 11,850	11,727	21,387

For details on trade receivables and allowance for impairment, please refer to note 6(e).

Contract liabilities are mainly due to advance receipt of loans from customers. The Group will report revenue when the product is delivered to the customer.

The amount of revenue recognized for the years ended December 31 2025 and 2024 that was included in the contract liability balance at the beginning of the period were $9,874 thousand and $19,594 thousand, respectively.

(v) Employee compensation and directors' remuneration

On June 4, 2025, the Company resolved at the shareholders' meeting to amend its Articles of Incorporation. According to the amended Articles, if the Company has profit in a given fiscal year, the profit shall be used to offset against any accumulated losses incurred by the Company. The remainder, if any, 1% shall be allocated as employee remuneration (including a minimum of 40% to those base-level employees) and a maximum of 2% as remunerations for directors. The recipients of the aforementioned employee remuneration, whether in the form of shares or cash, may include employees of the subsidiaries who meet certain specific requirements. Prior to the amendment, the Articles of Incorporation stipulated that, if the Company has profit in a given fiscal year, the profit shall be used to offset against any accumulated losses incurred by the Company. The remainder, if any, 1% should be allocated as employee remuneration and no more than 2% as remunerations for directors. The recipients of the aforementioned employee remuneration, whether in the form of shares or cash, could include employees of the subsidiaries who met certain specific requirements.

For the years ended December 31, 2024, the Company estimated its employee remuneration amounting to $2,980 thousand, and directors' remuneration amounting to $2,279 thousand. The estimated amounts mentioned above are calculated based on the net profit before tax, excluding the remuneration to employees, directors of each period, multiplied by the percentage of remuneration to employees, directors as specified in the Company's articles. These remunerations were expensed under operating costs or operating expenses during 2025 and 2024. Related information would be available at the Market Observation Post System website. The amounts, as stated in the consolidated financial statements, are identical to those of the actual distributions for 2025 and 2024.

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(w) Non-operating income and expenses

(i) Interest income

For the years ended December 31, 2025 and 2024, the details of other income were as follows:

	2025	2024
Interest income from bank deposits	$ 17,299	22,264

(ii) Other income

For the years ended December 31, 2025 and 2024, the details of other income were as follows:

	2025	2024
Rent income	$ 12,247	12,061
Dividend income	19,844	41,441
Other income, Others	14,790	38,240
	$ 46,881	91,742

(iii) Other gains and losses

For the years ended December 31, 2025 and 2024, the details of other gains and losses were as follows:

	2025	2024
Gains on disposal of investment property	-	3,890
Loss on disposal of property, plant and equipment	(17)	(45)
Gains from lease modifications	60	97
Foreign exchange (losses)gains	(45,783)	41,710
(Losses)Gains on financial assets at fair value through profit	(97,122)	131,775
Other	(3,158)	(342)
	$ (146,020)	177,085

(iv) Financial costs

For the years ended December 31, 2025 and 2024, the details of finance costs were as follows:

	2025	2024
Interest expense	$ 79,808	79,634
Less: Interest capitalization	(59,258)	(59,082)
	$ 20,550	20,552

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(x) Financial instruments

(i) Credit risk

1) Credit risk exposure

The carrying amount of financial assets except for cash and cash equivalents, represents the maximum amount exposed to credit risk. As of December 31, 2025 and 2024, the maximum amount exposed to credit risk were $1,046,610 thousand and $1,103,978 thousand, respectively.

The sales target of the Group is not significantly concentrated in a few customers, as of December 31, 2025 and 2024, the balance of accounts receivable resulted from the top ten customers were 35% and 40%.

(ii) Liquidity risk

The following table shows the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting agreements.

	Carrying amount	Contractual cash flows	Within 6 months	6-12 months	1-2 years	2-5 years	Over 5 years
December 31, 2025
Non-derivative financial liabilities
Short-term bank loans	$ 500,000	501,339	501,339	-	-	-	-
Long-term bank loans	3,652,014	3,741,563	34,548	35,121	3,166,304	505,590	-
Notes and trade payables	288,647	288,647	288,647	-	-	-	-
Other payables (including related parties)	192,842	192,842	192,842	-	-	-	-
Lease liabilities	86,002	90,922	16,497	16,497	22,024	35,904	-
	$ 4,719,505	4,815,313	1,033,873	51,618	3,188,328	541,494	-
December 31, 2024
Non-derivative financial liabilities
Short-term bank loans	$ 460,000	460,925	460,925	-	-	-	-
Long-term bank loans	3,661,014	3,803,497	34,530	35,102	666,894	3,066,971	-
Notes and trade payables	375,721	375,721	375,721	-	-	-	-
Other payables (including related parties)	225,304	225,304	225,304	-	-	-	-
Lease liabilities	112,478	119,750	16,494	16,494	38,474	48,288	-
	$ 4,834,517	4,985,197	1,112,974	51,596	705,368	3,115,259	-

The Group does not expect the cash flows included in the maturity analysis to occur significantly earlier or at significantly different amounts.

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(iii) Currency risk

1) Exposure to foreign currency risk

The Group’s significant exposure to foreign currency risk were as follows:

	December 31, 2025			December 31, 2024
	Local currency	Exchange rate	TWD	Local currency	Exchange rate	TWD
Financial assets:
Monetary items
USD	$ 13,081	31.43	411,136	21,029	32.79	689,541
Financial liabilities
Monetary items
USD	404	31.43	12,694	6,211	32.79	203,661

2) Sensitivity analysis

The Group’s exposure to foreign currency risk arises from the translation of the foreign currency exchange gains and losses on cash and cash equivalents, note and trade receivables, trade payables and other payables that are denominated in foreign currency.

A strengthening (weakening) of 1% of the NTD against the USD, as of 2025 and 2024, would have increased (decreased) the net profit after tax by $3,188 thousand and $3,887 thousand, respectively. This analysis is based on foreign currency exchange rate variances that the Group considered to be reasonably possible at the reporting date. The analysis assumes that all other variables remain constant and ignores any impact of forecasted sales and purchases. The analysis is performed on the same basis for 2025 and 2024.

3) Foreign exchange gain and loss on monetary items

Since the Group has many kinds of functional currency, the information on foreign exchange gain (loss) on monetary items is disclosed by total amount. For years 2025 and 2024, foreign exchange gain (loss) (including realized and unrealized portions) amounted to $(45,783) thousand and $41,710 thousand, respectively.

(iv) Interest rate analysis

Please refer to the notes on liquidity risk management and interest rate exposure of the Group’s financial assets and liabilities.

The following sensitivity analysis is based on the exposure to the interest rate risk of derivative and non-derivative financial instruments on the reporting date. Regarding assets with variable interest rates, the analysis is based on the assumption that the amount of assets outstanding at the reporting date was outstanding throughout the year. The rate of change is expressed as the interest rate increases or decreases by 0.25% when reporting to management internally, which also represents the Group management's assessment of the reasonably possible interest rate change.

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

If the interest rate had increased / decreased by 0.25%, the Group’s net income would have increased / decreased by $7,304 thousand and $7,322 thousand for the year ended December 31, 2025 and 2024 with all other variable factors remaining constant, respectively.

(v) Other market price risk

For the years ended December 31, 2025 and 2024, the sensitivity analyses for the changes in the securities price at the reporting date were performed using the same basis for the profit and loss as illustrated below:

	2025		2024
Price of securities at the reporting date	Other comprehensive income after tax	Net income	Other comprehensive income after tax	Net income
Increasing 1%	$ 4,528	6,127	4,756	4,649
Decreasing 1%	$ (4,528)	(6,127)	(4,756)	(4,649)

(vi) Fair value of financial instruments

1) Fair value hierarchy

The carrying amount and fair value of the Group’s financial assets and liabilities, including the information on fair value hierarchy were as follows; however, except as described in the following paragraphs, for financial instruments not measured at fair value whose carrying amount is reasonably close to the fair value, and lease liabilities, disclosure of fair value information is not required:

	December 31, 2025
	Book Value	Level 1	Level 2	Level 3	Total
Financial assets at fair value through profit or loss
Mandatorily measured at fair value through profit or loss-current	$ 598,474	598,474	-	-	598,474
Mandatorily measured at fair value through profit or loss-non current	14,238	14,238	-	-	14,238
Subtotal	612,712	612,712	-	-	612,712
Financial assets at fair value through other comprehensive income
Stock in domestic unlisted company	452,795	-	-	452,795	452,795
Total	$ 1,065,507	612,712	-	452,795	1,065,507

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

	December 31, 2024
	Book Value	Fair Value
		Level 1	Level 2	Level 3	Total
Financial assets at fair value through profit or loss
Mandatorily measured at fair value through profit or loss-current	$ 449,786	449,786	-	-	449,786
Mandatorily measured at fair value through profit or loss-non current	15,139	15,139	-	-	15,139
Subtotal	464,925	464,925	-	-	464,925
Financial assets at fair value through other comprehensive income
Stock in domestic unlisted company	475,551	-	-	475,551	475,551
Total	$ 940,476	464,925	-	475,551	940,476

2) Valuation techniques for financial instruments not measured at fair value

A financial instrument is regarded as being quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency and those prices represent actual and regularly occurring market transactions on an arm's-length basis. Whether transactions are taking place 'regularly' is a matter of judgment and depends on the facts and circumstances of the market for the instrument.

Quoted market prices may not be indicative of the fair value of an instrument if the activity in the market is infrequent, the market is not well-established, only small volumes are traded, or bid-ask spreads are very wide. Determining whether a market is active involves judgment.

Measurements of fair value of financial instruments without an active market are based on a valuation technique or quoted price from a competitor. Fair value measured by a valuation technique can be extrapolated from similar financial instruments, the discounted cash flow method, or other valuation technique including a model using observable market data at the reporting date.

3) There were no transfers between Level 2 to Level 1 in 2025 and no transfers in either direction in 2024.

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

4) Reconciliation of Level 3 fair values

	Fair value through other comprehensive income
	Unquoted equity instruments
Opening balance, January 1, 2025	$ 475,551
Total gains and losses recognized:
In other comprehensive income	(22,756)
Ending Balance, December 31, 2025	$ 452,795
Opening balance, January 1, 2024	$ 732,069
Total gains and losses recognized
In other comprehensive income	(256,518)
Ending Balance, December 31, 2024	$ 475,551

For the years ended December 31, 2025 and 2024, total gains and losses that were included in “unrealized gains and losses from financial assets at fair value through other comprehensive income” were as follows:

	2025	2024
Total gains and losses recognized
In other comprehensive income, and presented in “unrealized gains and losses from financial assets at fair value through other comprehensive income”	(22,756)	(256,518)

5) Quantified information on significant unobservable inputs (Level 3) used in fair value measurement

Most of the fair value of the Group classified as level 3, with only a single significant unobservable input, is an equity instrument in no active market which has multiple significant unobservable inputs. Because the inputs are mutual independent, there is no relevance.

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Quantified information of significant unobservable inputs was as follows:

Item	Valuation technique	Significant unobservable inputs
Financial assets at fair value through other comprehensive income equity investments without an active market	Comparable company analysis	· P/E ratio (21.08 and 24.97 on December 31, 2025 and 2024, respectively)
· Lack-of-Marketability Discount (8.98%~24.65% and 5.37%~23.36% on December 31, 2025 and 2024, respectively)
· P/B ratio (0.74~2.29 and 0.75~2.3 on December 31, 2025 and 2024, respectively)	The estimated fair value would increase (decrease) if:
· The P/E ratio and control premium were higher (lower);
· Lack-of-Marketability Discount were lower (higher);
· The P/B ratio and control premium were higher (lower).

6) Fair value measurements in Level 3-sensitivity analysis of reasonably possible alternative assumptions

The method to derive at the fair value of financial instruments is reasonable but could yield different outcomes when using different multipliers. For fair value measurements in Level 3, changing one or more of the assumptions to reflect reasonably possibilities of alternative assumptions would have the following effects:

December 31, 2025	Inputs	Variation	Other comprehensive income
			Favourable	Unfavourable
Financial assets at fair value through other comprehensive income
Equity investments without an active market	P/E ratio	1%	552	(552)
	Discount rate	1%	728	(728)
	P/B ratio	1%	4,446	(4,446)
December 31, 2024
Financial assets at fair value through other comprehensive income
Equity investments without an active market	P/E ratio	1%	457	(457)
	Discount rate	1%	691	(691)
	P/B ratio	1%	4,710	(4,710)

The favorable and unfavorable effects represent the changes in fair value, and fair value is based on a variety of unobservable inputs calculated using a valuation technique. The analysis above only reflects the effects of changes in a single input, and it does not include the interrelationships with another input.

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(y) Financial risk management

(i) Overview

The Group have exposures to the following risks from its financial instruments:

1) credit risk
2) liquidity risk
3) market risk

This note expresses the risk exposure information of the above-mentioned risk of the Group, and the Group’s objectives, policies and processes for measuring and managing the risks. For more disclosures about the quantitative effects, please refer to the respective notes in the consolidated financial statements.

(ii) Structure of risk management

The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework.

The Group’s risk management policies are established to identify and analyze the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s activities. The Group, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.

(iii) Credit risk

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Group’s receivables from customers and investments in debt securities.

1) Trade and other receivable

The Group’s credit risk exposure is mainly affected by the individual conditions of each customer. However, the management also considers the statistical data of the Group’s customer base, including the default risk of the customer’s industry and country, as these factors may affect credit risk.

The accounting Department has established a credit policy under which each new customer is analyzed individually for creditworthiness before the Group’s standard payment and delivery terms and conditions are offered. The Group’s review includes external ratings, when available, and, in some cases, bank references. Purchase limits are established for each customer and represent the maximum open amount without requiring approval from the Risk Management Committee; these limits are reviewed quarterly. Customers that fail to meet the Group’s benchmark creditworthiness may transact with the Group on a prepayment basis or providing collateral.

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The Group has set up allowances for bad debt accounts to reflect estimates of losses incurred in accounts receivable and other receivables and investments. The main components of the allowance account include specific loss components related to individual major risk insurance and combined loss components established for similar asset groups that have occurred but have not been identified. The combined loss allowance account is determined based on historical payment statistics of similar financial assets.

2) Investments

The exposure to credit risk for the bank deposits and other financial instruments is measured and monitored by the Group’s finance department. The Group only deals with banks, other external parties, corporate organizations, government agencies and financial institutions with good credit rating. The Group does not expect any counterparty above fails to meet its obligations hence there is no significant credit risk arising from these counterparties.

3) Endorsements and guarantees

The Group’s policy is to provide financial guarantees only to wholly owned subsidiaries. As of December 31, 2025 and 2024, no other guarantees were outstanding.

(iv) Liquidity risk

Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group’s approach to managing liquidity is to ensure, as far as possible, that it always has sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation.

Generally, the Group ensures that it has sufficient cash to support expected operating expenditure in a short term, including financial liabilities, but excludes potential impact which can not be predicted reasonably such as nature disasters. Moreover, as of December 31, 2025 and 2024, the Group’s unused credit line were amounted to $3,297,986 thousand and $3,228,986 thousand, respectively.

(v) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates, and equity prices, will affect the Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

1) Currency risk

The Group is exposed to currency risk on sales, purchases, and borrowings that are denominated in a currency other than the respective functional currencies of the Group’s entities. The functional currency of group is mainly NTD, and the currencies used in these transactions are the NTD, HKD, JPY and USD.

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

2) Interest rate risk

The Group’s interest risk arose from short-term and long-term borrowings. Since the short term borrowings are at floating rate, the fluctuation in interest rates will lead to movements in future cash flows.

3) Other market price risk

The Group is exposed to equity price risk due to the investments in stocks listed on domestic markets and fund investment on domestic and foreign markets. This is a strategic investment and is not held for trading. The Group does not actively trade in these investments as the management of the Group manage the risk by holding different investment portfolios. The Group assigned a specific team to supervise the equity price risk so as to avoid or minimize the risk from the hedging position.

(z) Capital management

The policy of the Board of Directors is to maintain a sound capital base to maintain the confidence of investors, creditors and the market, and to support the development of future operations. Capital includes the share capital, capital reserve, retained earnings and non-controlling interests of the combined company. The Board of Directors controls the return on capital and at the same time controls the level of ordinary stock dividends.

The Group and other entities in the same industry use the debt-to-equity ratio to manage capital. This ratio is the total net debt divided by the total capital. The net debt from the balance sheet is derived from the total liabilities less cash and cash equivalents. The total capital and equity include share capital, capital surplus, retained earnings, and other equity plus net debt.

As of December 31, 2025 and 2024, the Group’s debt-to-equity ratio at the end of the reporting period, were as follows:

	December 31, 2025	December 31, 2024
Total liabilities	$ 5,690,429	5,713,684
Less: cash and cash equivalents	(438,417)	(694,400)
Net debt	$ 5,252,012	5,019,284
Total equity	$ 5,691,881	6,063,056
Debt-to-equity ratio at 31 December	92.27 %	82.78 %

The method of capital management of the consolidated company on December 31, 2025 and 2024 has not changed.

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(aa) Investing and financing activities not affecting current cash flow

The Group’s investing and financing activities which did not affect the current cash flow in the years ended December 31, 2025 and 2024, were as follows:

(i) For right-of-use asset under lease, please refer to notes 6(i).

(ii) Reconciliation of liabilities arising from financing activities were as follows:

	January 1, 2025	Cash flows	Non-cash changes			December 31, 2025
			Acquisition	Foreign exchange movement	Change in lease payments
Long-term borrowings	$ 3,661,014	(9,000)	-	-	-	3,652,014
Short-term borrowings	460,000	40,000	-	-	-	500,000
Lease liabilities	112,478	(29,800)	11,583	(158)	(8,101)	86,002
Total liabilities from financing activities	$ 4,233,492	1,200	11,583	(158)	(8,101)	4,238,016
	January 1, 2024	Cash flows	Non-cash changes			December 31, 2024
			Acquisition	Foreign exchange movement	Change in lease payments
Long-term borrowings	$ 3,930,342	(269,328)	-	-	-	3,661,014
Short-term borrowings	200,000	260,000	-	-	-	460,000
Lease liabilities	110,069	(27,518)	83,881	(1,839)	(52,115)	112,478
Total liabilities from financing activities	$ 4,240,411	(36,846)	83,881	(1,839)	(52,115)	4,233,492

(7) Related-party transactions

(a) Names and relationship with related parties

The followings are entities that have had transactions with related party during the periods covered in the consolidated financial statements:

Name of related party	Relationship with the Group
Chun Pin Enterprise Co., Ltd.	An associate
Foremost-Oceans NueTeq, Ltd.	An associate
Chin Yi Ho Hang, Ltd.	Same chairman with the Group
Yee Fong Chemical and Industrial Co., Ltd.	The director of this company is the president of the Group

(b) Significant transactions with related parties

(i) Other transactions with related parties

Account	Relationship	2025	2024
Cost of goods sold	Associate	$ -	18,551

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The Group commissioned its associate to operate oil storage tanks. The outstanding balances of management expenses on December 31, 2025 and 2024 were $1,440 thousand and $1,440 thousand, which are presented as “other payables to related parties”

(ii) Leases

In May 2021, the Group leased an high-pressure tank from its associate. A six-year lease contract was entered into, and the rent was determined based on the rental rates in the vicinity. The total value of contract was $148,102 thousand. For the years ended December 31, 2025 and 2024, the Group recognized the amount of $339 thousand and $517 thousand as interest expense. As of December 31, 2025 and 2024, the lease liabilities had amounted to $21,769 thousand and $37,887 thousand.

In January 2024, the Group leased from other related parties an office building as its headquarter on Juguang Road, Taipei City, and the land in Zhongli Dist., Taoyuan City. A five year lease contract was signed, and the rent was determined based on land rental rates in the vicinity. The total value of the contract was $37,000 thousand. For the years ended December 31, 2025 and 2024, the Group recognized the amount of $427 thousand and $254 thousand as interest expense. As of December 31, 2025 and 2024, the lease liabilities had amounted to $21,595 thousand and $28,568 thousand.

	2025	2024
Short-term employee benefits	$ 9,430	10,009

(8) Pledged assets

The carrying values of pledged assets were as follows:

Pledged assets	Object	December 31, 2025	December 31, 2024
Property, plant and equipment	Long-term and short-term loans	$ 2,260,506	2,284,611
Investment property	Long-term and short-term loans	6,169,141	6,169,141
Other financial assets	Performance bond	314	-
		$ 8,429,961	8,453,752

(9) Commitments and contingencies

(a) Significant Commitments and Contingencies were as follows:

(i) The Group’s unrecognized contractual commitments are as follows:

	December 31, 2025	December 31, 2024
Acquisition of property, plant and equipment	$ 23,782	52,627

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(ii) The Group’s outstanding standby letter of credit

	December 31, 2025	December 31, 2024
Outstanding standby letter of credit	$ 314	-

(iii) The joint construction contract signed by the Group for the sale of the built real estate is as follows:

Joint construction method	Project name
Co-built sub-housing	Zhonghe District Health Section, Wenshan District Xinglong Section,

On November 30, 2023, the Group’s Board of Directors resolved to enter into a joint construction contract with an unrelated party for “5 parcels of land at land lot No. 1285 and others, Jiankang Section, Zhonghe District, New Taipei City Health Section”. The above-mentioned case did not have significant influence on the Group’s finance and business.

On May 10, 2024, the Group’s Board of Directors resolved to intend to sign a joint construction contract with an unrelated party for the urban renewal project of Land serial no.300, Section 3, Xinglong Section, Wenshan District, Taipei City. The land area is approximately 1,313 square meters, and the shareholding is 50%. Relevant information can be found on the Market Observation Post System.

(iv) The amount of endorsement guarantee provided to subsidiaries due to loan and business needs is as follows: none.

(b) Major contingent liabilities: none.

(10) Losses Due to Major Disasters: None

(11) Subsequent Events: None

(12) Other

(a) A summary of current-period employee benefits, depreciation, and amortization, by function, is as follows:

By item ByFUNDING	2025			2024
	Cost of Sale	Operating Expense	Total	Cost of Sale	Operating Expense	Total
Employee benefits
Salary	280,159	94,364	374,523	289,359	98,804	388,163
Labor and health insurance	30,384	8,589	38,973	30,293	8,643	38,936
Pension	13,681	4,885	18,566	13,972	5,190	19,162
Director’s remuneration	-	6,889	6,889	-	9,041	9,041
Others	17,320	6,553	23,873	17,082	5,434	22,516
Depreciation	229,470	16,938	246,408	217,266	18,883	236,149
Amortization	-	-	-	-	-	-

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(13) Other disclosures

(a) Information on significant transactions:

The following is the information on significant transactions required by the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” for the Group:

(i) Loans to other parties:

(In Thousands of New Taiwan Dollars)

Number (note 1)	Name of lender	Name of borrower	Account name	Related party	Highest balance of financing to other parties during the period (note 2)	Ending balance	Actual usage amount during the period	Range of interest rates) during the period	Purposes of fund financing for the borrower (Note 2)	Transaction amount for business between two parties	Reasons for short-term financing	Allowance for bad debt	Collected		Individual funding loan limits (Note 3)	Maximum limit of fund financing (Note 3)
													Item	Value
0	The Company	Ocean Plastics (Dong Guan) Co., Ltd.	Other neutralities and long-term neutralities	Yes	151,698	137,573	137,573	-	1	67,664	Operation Capital	-		-	1,138,376	2,276,752

Note 1: The numbering is as follows:
1. “0” represents the parent company.
2. Subsidiaries are sequentially numbered from 1 by company.

Note 2: The method of filling out the capital loan and nature is as follows:
- Fill in 1 if you have business contacts.
- Fill in 2 if necessary for short-term financing.

Note 3: The total amount of funds and loans of the company must not exceed 40% of the net value of the Company, and the amount of funds and loans for a individual target shall not exceed 20% of the net value of the Company, and the limit of funds loaned to a single object is not more than 20% of the company's net value. The net value is based on the latest financial statements.

Note 4: The cumulative maximum balance of funds loaned to others from the current year to the reporting month includes the amount transferred from the accounts receivable beyond the normal credit period.

Note 5: The above transactions was written off when preparing the consolidated financial report.

(ii) Guarantees and endorsements for other parties: None

(iii) Securities held as of December 31, 2025 (excluding investment in subsidiaries, associates and joint ventures):

(In Thousands of New Taiwan Dollars)

Name of holder	Category and name of security	Relationship with company	Account title	Ending balance				Highest Percentage of ownership (%)
				Shares/Units (thousands)	Carrying value	Percentage of ownership (%)	Fair value
The Company	Taiwan VCM Corporation	-	Equity instruments at fair value through other comprehensive income	37,062	324,713	12.46 %	324,713	12.46 %
〃	U'dale Technology Co., Ltd	-	〃	630	28,068	3.38 %	28,068	3.38 %
〃	PAN OCEAN INC.	-	〃	152	6,890	15.07 %	6,890	15.07 %
〃	Ultra-Pak Industries Co., Ltd	-	〃	2,567	30,934	7.00 %	30,934	7.00 %
〃	Microsoft Composite Company	-	〃	237	-	4.32 %	-	4.32 %
〃	Fuentee Technology Co., Ltd	-	Financial assets mandatorily measured at fair value through profit or loss-current	2,945	152,828	7.87 %	152,828	7.87 %
Chang Xin Co., Ltd.	Ultra-Pak Industries Co., Ltd	-	Equity instruments at fair value through other comprehensive income	1,487	17,921	4.06 %	17,921	4.06 %
〃	Cosmactive Broadband Networks Co., Ltd	-	〃	1	-	0.12 %	-	0.12 %
Hong Da Investment Co., Ltd.	Acer Incorporated	-	Financial assets mandatorily measured at fair value through profit or loss-non current	119	3,135	-	3,135	-
〃	United Microelectronics Corporation	-	〃	29	1,425	-	1,425	-

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Name of holder	Category and name of security	Relationship with company	Account title	Ending balance				Highest Percentage of ownership (%)
				Shares/Units (thousands)	Carrying value	Percentage of ownership (%)	Fair value
o	Capital SZSE SME Price Index Exchange Traded Fund-TWD	-	o	200	3,420	-	3,420	-
o	Yuanta Taiwan Value High Dividend ETF	-	o	200	1,852	-	1,852	-
o	Mega 20 plus Year US Business ETF	-	o	320	4,406	-	4,406	-
o	Ultra-Pak Industries Co., Ltd	-	Equity instruments at fair value through other comprehensive income	1,265	15,239	3.45 %	15,239	3.45 %
o	E'dale Technology Co., Ltd	-	o	580	25,846	3.11 %	25,846	3.11 %
o	Fuzetee Technology Co., Ltd	-	Financial assets mandatorily measured at fair value through profit or loss-current	2,926	151,855	7.82 %	151,855	7.82 %
Fine Environment Technologies Co., Ltd.	Minima Technology Co., Ltd	-	Equity instruments at fair value through other comprehensive income	413	3,184	1.04 %	3,184	1.04 %
o	Microsoft Composite Company	-	o	237	-	4.32 %	-	4.32 %
Fermat Enterprises Ltd.	AB FCP I-Global High Yield Portfolio Class AT USD	-	Financial assets mandatorily measured at fair value through profit or loss-current	143	14,073	-	14,073	-
o	AB FCP I-Global High Yield Portfolio Class AA USD	-		29	6,994	-	6,994	-
o	AB FCP I-Global High Yield Portfolio Class TA USD	-	o	6	1,543	-	1,543	-
o	Nomura All Weather Global Bond Fund	-	o	6	1,917	-	1,917	-
OPC HOLDINDS, LTD.	AB FCP I-Global High Yield Portfolio Class AA USD	-	o	39	9,481	-	9,481	-
o	AB FCP I-Global High Yield Portfolio Class AT USD	-	o	71	6,975	-	6,975	-
o	Nomura Fallen Angel Non-Investment GradeBond FundAccumulate USD	-	o	13	3,034	-	3,034	-
o	Nomura Global Financial Bond Fund Dis TWD	-	o	12	3,033	-	3,033	-
o	Nomura All Weather Global Bond Fund	-	o	10	3,195	-	3,195	-
Ocean Plastics(Hu) ZhoujCo.,Ltd	BOC Wealth "Stable Growth" Institutional-only High-Rating Open-ended Fund	-	o	36,772	173,479	-	173,479	-
o	ICBC – "Tiantianxin Wenyield" Open-ended Fixed-income Wealth Management Product	-	o	15,452	70,067	-	70,067	-

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(iv) Related-party transactions for purchases and sales with amounts exceeding the lower of NT$300 million or 20% of the capital stock: None.

(v) Receivables from related parties with amounts exceeding the lower of NT$100 million or 20% of the capital stock:

Name of company	Counter-party	Nature of relationship	Ending balance	Turnover rate	Overdue		Amounts received in subsequent period	Allowance for bad debts	note
					Amount	Action taken
The Company	Ocean Plastics (Dong Guan) Co., Ltd.	The Company's subsidiary invested by RFIL	178,328	28.54	137,573	According to funding needs	10,826	-	Note 2

Note 1: Data as of the reporting date
Note 2: The above transactions were written off when preparing the consolidated financial report.

(vi) Business relationships and significant intercompany transactions:

(In Thousands of New Taiwan Dollars)

No. (Note 1)	Name of company	Name of counter-party	Nature of relationship (Note 2)	Intercompany transactions
				Account name	Amount	Trading terms	Percentage of the consolidated net revenue or total assets
0	The Company	Fine Environment Technologies Co., Ltd.	1	Trade receivables	309	Comparable to general company	-%
0	The Company	Fine Environment Technologies Co., Ltd.	1	Operating revenue	3,237	Comparable to general company	0.09%
0	The Company	Ocean Plastics (Dong Guan) Co., Ltd.	1	Trade receivables	40,755	Comparable to general companies	0.36%
0	The Company	Ocean Plastics (Dong Guan) Co., Ltd.	1	Other receivable	28,373	Consider the collection situation and accept the payment	0.25%
0	The Company	Ocean Plastics (Dong Guan) Co., Ltd	1	Long-term receivables	109,200	Consider the collection situation and accept the payment	0.96%
0	The Company	Ocean Plastics (Dong Guan) Co., Ltd	1	Operating revenue	67,664	Comparable to general company	1.88%
0	The Company	Ocean Plastics (Hui Zhou) Co., Ltd.	1	Operating cost	733	Comparable to general company	0.02%

Note 1: The numbering method is as follows:
(1) 0 represents the parent company.
(2) Subsidiaries are numbered sequentially starting from the Arabic numeral 1 according to their company type.

Note 2: The types of relationships with counterparties are indicated as follows:
(1) Parent company to subsidiary.
(2) Subsidiary to parent company.
(3) Subsidiary to subsidiary.

Note 3: For the business relationship and significant transactions between parent company and subsidiary, only the sales, accounts receivable and loaning of funds to others are disclosed, and the corresponding transaction accounts are not to be described.

Note 4: The above transactions was written off when preparing the consolidated financial report.

(b) Information on investees:

The following is the information on investees for the years 2025 (excluding information on investees in Mainland China):

(In Thousands of New Taiwan Dollars)

Name of investor	Name of investor	Location	Main businesses and products	Original investment amount		Balance as of December 31, 2025			Highest Percentage of ownership	Net income (losses) of investor	Share of profits/losses of investor	Note
				December 31, 2025	December 31, 2024	Shares (thousands)	Percentage of winnings	Carrying value
The Company	Chan Phi Enterprise Co., Ltd.	Taiwan	Warehousing industry	290,000	290,000	29,000	44.62 %	470,011	44.62 %	211,313	81,773	Associate
The Company	Fine Environment Technologies Co., Ltd.	Taiwan	Wholesale of plastics product	44,792	44,792	1,003	60.76 %	4,854	60.76 %	77	47	Subsidiary
The Company	Chang Xia Co., Ltd.	Taiwan	Real estate development	2,900,000	2,900,000	290,086	100.00 %	1,115,958	100.00 %	(153,904)	(153,904)	Subsidiary
The Company	Hong Da Investment Co., Ltd.	Taiwan	General investing	190,000	190,000	19,000	100.00 %	232,094	100.00 %	(41,033)	(41,033)	Subsidiary
The Company	Farmai Enterprises, Ltd.	British Virgin Islands	Investment holding	13,887	13,887	450	100.00 %	27,584	100.00 %	1,192	1,192	Subsidiary
The Company	OCEAN GROUP LTD.	Samoa	Investment holding	1,069,438	1,069,438	32,900	100.00 %	596,856	100.00 %	9,477	9,477	Subsidiary
The Company	Futamson Oceans NuaTaq, Ltd.	Taiwan	Wholesale of plastics product	4,050	4,050	605	40.07 %	3,131	40.07 %	(2,163)	(867)	Associate
Hong Da Investment Co., Ltd.	Fine Environment Technologies Co., Ltd.	Taiwan	Wholesale of plastics product	4,294	4,294	647	39.24 %	3,135	39.24 %	77	30	Subsidiary
Chang Xia Co., Ltd.	Shen Yang Development Co., Ltd.	Taiwan	Real estate development	535	535	1,000	100.00 %	542	100.00 %	4	4	Subsidiary

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Name of invoice	Name of invoice	Location	Main businesses and products	Original investment amount		Balance as of December 31, 2025			Highest Percentage of ownership	Net income (losses) of invoice	Share of profit/losses of invoice	Note
				December 31, 2025	December 31, 2024	Shares (thousands)	Percentage of ownership	Carrying value
OCEAN GROUP LTD.	OPC HOLDINDS, LTD.	British Virgin Islands	Investment holding	27,050	27,050	450	100.00 %	58,647	100.00 %	200	200	Subsidiary
OCEAN GROUP LTD.	SAGE HOLDINDS, LTD.	Samoa	Investment holding	800,217	800,217	25,000	100.00 %	663,746	100.00 %	33,764	33,764	Subsidiary
OCEAN GROUP LTD.	RISE FURTURE INTERNATIONAL LTD.	Seychelles	Investment holding	241,371	241,371	7,450	100.00 %	(127,079)	100.00 %	(25,986)	(25,986)	Subsidiary

Note: Transaction within the Group were eliminated in the consolidated financial statements except for Chunpin Industrial Co., Ltd. and Foremost-Oceans NueTeq, Ltd..

(i) The names of investees in Mainland China, the main businesses and products, and other information:

(In Thousands of New Taiwan Dollars/In Thousands of USD Dollars)

Name of invoice	Main businesses and products	Total amount of paid-in capital (Note 3)	Method of investment (Note 1)	Accumulated outflow of investment from Taiwan as of January 1, 2024 (Note 2)	Investment flows		Accumulated outflow of investment from Taiwan as of December 31, 2024 (Note 1)	Net income (losses) of the invoice	Percentage of ownership	Highest percentage of ownership	Investment income (losses) (Note 2)	Book value	Accuma-lated remittance of earnings in current period
					Outflow	Inflow
Ocean Plastics(Hai Zhou)Co.,Ltd	Operating general soft tape, foamed latex leather and rubber leather production and sales business	812,643 (USD25,000)	(2)	812,643 (USD25,000)	-	-	812,643 (USD25,000)	33,764	100.00%	100.00%	33,764	663,743	-
Ocean Plastics (Dong Guan) Co., Ltd.	Production and sales of PU synthetic leather, foamed latex leather and rubber leather	242,168 (USD7,450)	(2)	242,168 (USD7,450)	-	-	242,168 (USD7,450)	(24,565)	100.00%	100.00%	(24,565)	(125,602)	-

(ii) Limitation on investment in Mainland China:

Accumulated Investment in Mainland China as of December 31, 2025 (Note 3)	Investment Amounts Authorized by Investment Commission, MOEA (Note 3)	Upper Limit on Investment (Note 4)
1,069,438 (USD32,900)	1,069,438 (USD32,900)	3,415,128

Note 1: Re-investment company in Mainland China established through investments of a third district.
Note 2: The investment income (loss) were based on financial statements audited by the auditor of the Company.
Note 3: The amount of accumulated outflow of investment from Taiwan to Mainland China at the reporting date.
Note 4: The upper limit on investment was calculated in accordance with regulations of the Investment Commission of the Ministry of Economic Affairs for 60% of the net equity or consolidated net equity.
Note 5: The above transactions was written off when preparing the consolidated financial report.

(iii) Significant transactions:

The significant inter-company transactions with the subsidiary in Mainland China, which were eliminated in the preparation of consolidated financial statements, are disclosed in "Information on significant transactions".

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(14) Segment information

(a) General information

The Group’s reportable departments are the Taiwan region and the mainland region. They are mainly engaged in the manufacturing, sales and research and development of related products such as plastic cloth, plastic pipe, plastic leather, and plastic powder and pellets; The real estate development department is engaged in the Group’s real estate development business. The Group’s strategic business units are managed separately due to different technologies and marketing strategies required. The Group’s main operating decision makers review the internal management reports of each strategic operating unit at least quarterly. The group has other operating departments that have not reached the quantitative threshold, mainly engaged in the sales of plastic products and other businesses.

(b) The information should report that the department’s profit and loss, assets, liabilities and their measurement and reconciliations

The Group uses the internal management report that the chief operating decision maker reviews as the basis to determine resource allocation and make a performance evaluation. The internal management report includes profit before taxation, but not including any extraordinary activity and foreign exchange gain or losses because taxation, extraordinary activity, and foreign exchange gain or losses are managed on a group basis, and hence they are not able to be allocated to each reportable segment. In addition, not all reportable segments include depreciation and amortization of significant non-cash items. The reportable amount is similar to that in the report used by the chief operating decision maker.

The operating segment accounting policies are similar to those described in note 4 “significant accounting policies” except for the recognition and measurement of pension cost, which is on a cash basis.

The Group treated intersegment sales and transfers as other transactions. They are measured at market price.

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The Group’s operating segment information and reconciliation are as follows:

	2025
	Taiwan Business Division	China Business Department	Real Estate Development Department	Other	Reconciliation and elimination	Total
Revenue:
Revenue from external customers	$ 2,945,269	649,617	-	-	-	3,594,886
Inter-segment revenue	70,901	683	-	-	(71,584)	-
Interest income	3,419	11,935	-	1,945	-	17,299
Total revenues	$ 3,019,589	662,235	-	1,945	(71,584)	3,612,185
Interest expense	$ 18,870	1,680	-	-	-	20,550
Depreciations and amortization	223,965	22,443	-	-	-	246,408
Share of profit (loss) of associates and joint ventures accounted for using equity method	(105,767)	-	-	-	186,673	80,906
Reportable segment profit or loss	$ (331,997)	23,021	(30,904)	1,192	184,187	(154,501)
Asset:
Investments accounted for using equity method	$ 2,453,422	-	546	-	(1,980,826)	473,142
Capital expenditure of non-current assets	146,944	-	28,619	-	-	175,563
Reportable segment assets	$ 7,967,309	909,418	6,213,944	27,384	(3,735,745)	11,382,310
Reportable segment liabilities	$ 1,910,027	312,562	3,646,478	-	(178,638)	5,690,429
	2024
	Taiwan Business Division	China Business Department	Real Estate Development Department	Other	Reconciliation and elimination	Total
Revenue:
Revenue from external customers	$ 3,975,104	708,066	-	-	-	4,683,170
Inter-segment revenue	51,400	-	-	-	(51,400)	-
Interest income	8,974	11,462	-	1,828	-	22,264
Total revenues	$ 4,035,478	719,528	-	1,828	(51,400)	4,705,434
Interest expense	$ 19,595	957	-	-	-	20,552
Depreciations and amortization	214,469	21,680	-	-	-	236,149
Share of profit (loss) of associates and joint ventures accounted for using equity method	81,737	-	-	-	28,964	110,701
Reportable segment profit or loss	$ 242,107	51,426	(34,814)	3,120	26,347	288,186
Asset:
Investments accounted for using equity method	$ 2,651,100	-	542	-	(2,170,260)	481,382
Capital expenditure of non-current asset	148,027	-	28,619	-	-	176,646
Reportable segment assets	$ 8,615,125	892,983	6,150,309	26,486	(3,908,163)	11,776,740
Reportable segment liabilities	$ 2,151,443	308,454	3,431,145	294	(177,652)	5,713,684

(Continued)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Revenue from the external customers of the Group was as follows:

Products	2025	2024
Plastic materials	$ 1,282,958	2,234,934
Plastic products	2,300,513	2,434,981
Others	11,415	13,255
Total	$ 3,594,886	4,683,170

(d) Geographical

In presenting information on the basis of geography, segment revenue is based on the geographical location of customers and segment assets are based on the geographical location of the assets.

Please refer to Note 6(u) for the location list of the Group’s income from external customers.

Geographical information	December 31, 2025	December 31, 2024
Non-current assets:
Taiwan	$ 8,190,037	8,222,871
China	109,823	118,898
Total	$ 8,299,860	8,341,769

Non-current assets include property, plant and equipment, investment property and other assets, not including financial instruments, deferred tax assets, assets of post-employment benefits, and non-current assets of rights arising from an insurance contract.

(e) Information on revenue from major customers

No individual clients constituting over 10% of total revenue in 2025 and 2024.

AI assistant

OPC — Audit Report / Information 2026

51776_rns_2026-05-14_34f3d485-e9cd-4ed4-bfd5-4bf8a47a5994.pdf

Ocean Plastics Co., Ltd and Subsidiaries

Table of contents

Representation Letter

Independent Auditors’ Report

Opinion

Basis for Opinion

Other Matter

Key Audit Matters

1. Revenue recognition

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

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

Notes to Readers

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Consolidated Balance Sheets

December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

Consolidated Statements of Comprehensive Income

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Consolidated Statements of Cash Flows

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(4) Summary of material accounting policies:

(a) Statement of compliance

(b) Basis of preparation

(i) Basis of measurement

(ii) Functional and presentation currency

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(j) Investment property

(k) Property, plant and equipment

(i) Recognition and measurement

(ii) Subsequent expenditure

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(6) Explanation of significant accounts

(a) Cash and cash equivalents

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

OCEAN PLASTICS CO., LTD AND SUBSIDIARIES

OPC Audit Report / Information 2026