Oriental Union Chemical Corporation

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

Deloitte.

勤業眾信

勤業眾信聯合會計師事務所

110421 台北市信義區松仁路100號20樓

Deloitte & Touche

20F, Taipei Nan Shan Plaza

No. 100, Songren Rd.,

Xinyi Dist., Taipei 110421, Taiwan

Tel: +886 (2) 2725-9988

Fax: +886 (2) 4051-6888

www.deloitte.com.tw

INDEPENDENT AUDITORS' REPORT

The Board of Directors and Stockholders

Oriental Union Chemical Corporation

Opinion

We have audited the accompanying financial statements of Oriental Union Chemical Corporation (collectively referred to as the “Corporation”), which comprise the balance sheets as of December 31, 2025 and 2024, and the statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the financial statements, including material accounting policy information (collectively to as the “financial statements”).

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Corporation as of December 31, 2025 and 2024, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

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

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements for the year ended December 31, 2025. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

The descriptions of the key audit matters of the financial statements for the year ended December 31, 2025 are as follow:

The Impairment Loss of Property, Plant and Equipment

As of December 31, 2025, the balances of property, plant and equipment held by Oriental Union Chemical Corporation and its subsidiaries which accounted for using the equity method in mainland China, Far Eastern Union Petrochemical (Yangzhou) Ltd., amounted to $4,753,986 thousand and $6,986,950 thousand, respectively. In accordance with the International Accounting Standard No. 36 "Impairment of Assets," the management assesses property, plant and equipment for signs of impairment at the end of each reporting period. If any impairment indicators are identified, the recoverable amount of the asset should be estimated to assess the amount of impairment. Management evaluates the recoverable amount of property, plant and equipment based on value in use and fair value less costs to sell. Since this calculation involves various assumptions and uncertainties in estimates, we deem the review of impairment of the property, plant and equipment a key audit matter.

Corresponding audit procedures:

We obtained an understanding of the internal controls relevant to management's assessment and oversight of the impairment evaluation of property, plant and equipment.
We obtained the impairment evaluation report for property, plant and equipment issued by a professional valuation firm commissioned by management, and evaluated the professional capacity, competence, and objectivity of independent valuers.
We evaluated the valuation model used by management to calculate the recoverable amount.
We assessed the assumptions used in the valuation model, including the classification of cash-generating units, the market prices, cash flow forecasts, discount rates, etc., and considered the company's past operational performance, industry conditions, and future prospects, to comprehensively evaluate the reasonableness of the impairment assessment.

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

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

In preparing the financial statements, management is responsible for assessing the Corporation'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 Corporation 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 Corporation's financial reporting process.

Auditors' Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the ROC 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 financial statements.

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

Identify and assess the risks of material misstatement of the 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 Corporation's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Corporation's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the financial statements or, 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 Corporation to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the 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 entities or business activities within the Corporation to express an opinion on the financial statements. We are responsible for the direction, supervision, and performance of the Corporation 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.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements for the year ended December 31, 2025 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 audits resulting in this independent auditors’ report are Pei-De Chen and Wen-Ling Liu.

Deloitte & Touche
Taipei, Taiwan
Republic of China

March 9, 2026

Notice to Readers

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

For the convenience of readers, the independent auditors’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the ROC. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ report and financial statements shall prevail.

ORIENTAL UNION CHEMICAL CORPORATION

BALANCE SHEETS

DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	2025		2024
ASSETS	Amount	%	Amount	%
CURRENT ASSETS
Cash and cash equivalents (Notes 6 and 27)	$ 415,197	2	$ 251,579	1
Notes receivable (Note 9)	56,419		71,621	-
Trade receivables (Note 9)	390,740	2	517,376	3
Trade receivables from related parties (Notes 9 and 27)	166,191	1	174,405	1
Other receivables	2,673	-	1,523	-
Inventories (Note 10)	673,721	3	709,422	3
Prepayments for purchases	21,158	-	16,946	-
Other prepayments	19,118	-	23,575	-
Other current assets (Note 15)	148,789	1	141,746	1
Total current assets	1,894,006	9	1,908,193	9
NON-CURRENT ASSETS
Financial assets at fair value through other comprehensive income (Note 7)	2,683,321	13	3,042,018	14
Financial assets at amortized cost (Notes 8, 27 and 28)	78,762	-	102,887	-
Investments accounted for using the equity method (Note 11)	4,581,249	23	5,262,012	25
Property, plant and equipment (Note 12)	4,753,986	24	4,983,071	24
Construction in progress (Note 12)	2,944,484	15	2,581,473	12
Right-of-use assets (Note 13)	17,905	-	25,562	-
Investment properties (Notes 14 and 28)	1,682,742	8	1,682,742	8
Intangible assets	3,097	-	2,007	-
Deferred tax assets (Note 23)	361,157	2	326,468	2
Other non-current assets (Note 15)	1,099,709	6	1,177,921	6
Total non-current assets	18,206,412	91	19,186,161	91
TOTAL	$ 20,100,418	100	$ 21,094,354	100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term borrowings (Note 16)	$ 300,000	2	$ -	-
Trade payables	576,408	3	737,563	3
Other payables (Notes 17 and 27)	276,720	1	329,837	2
Current tax liabilities (Note 23)	-	-	10,237	-
Provisions (Note 19)	19,959	-	-	-
Lease liabilities (Note 13)	7,393	-	9,668	-
Other current liabilities (Note 18)	182,416	1	141,233	1
Total current liabilities	1,362,896	7	1,228,538	6
NON-CURRENT LIABILITIES
Long-term borrowings (Notes 16 and 28)	8,700,000	43	8,200,000	39
Deferred tax liabilities (Note 23)	642,831	3	661,768	3
Lease liabilities (Note 13)	10,887	-	15,993	-
Net defined benefit liabilities (Note 20)	114,134	1	155,150	1
Guarantee deposits	19,633	-	16,249	-
Other non-current liabilities (Note 18)	43,328	-	20,326	-
Total non-current liabilities	9,530,813	47	9,069,486	43
Total liabilities	10,893,709	54	10,298,024	49
EQUITY (Note 21)
Ordinary shares	8,857,031	44	8,857,031	42
Capital surplus	1,091,942	6	1,091,942	5
Retained earnings
Legal reserve	1,684,468	8	1,645,947	8
Special reserve	2,355,746	12	1,911,129	9
(Accumulated deficits) unappropriated earnings	(890,950)	(4)	483,138	2
Total retained earnings	3,149,264	16	4,040,214	19
Other equity
Exchange differences on translating foreign operations	(414,010)	(2)	(324,402)	(2)
Unrealized loss on financial assets at fair value through other comprehensive income	(3,359,058)	(17)	(2,749,995)	(13)
Total other equity	(3,773,068)	(19)	(3,074,397)	(15)
Treasury shares	(118,460)	(1)	(118,460)	-
Total equity	9,206,709	46	10,796,330	51
TOTAL	$ 20,100,418	100	$ 21,094,354	100

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

ORIENTAL UNION CHEMICAL CORPORATION

STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars, Except (Loss) Earnings Per Share)

	2025		2024
	Amount	%	Amount	%
OPERATING REVENUE
Sales revenue (Note 27)	$ 10,199,153	100	$ 11,468,163	100
OPERATING COST
Cost of goods sold (Notes 10, 22 and 27)	9,798,209	96	10,397,555	91
GROSS PROFIT	400,944	4	1,070,608	9
OPERATING EXPENSES (Notes 22 and 27)
Selling and marketing expenses	566,976	6	639,593	5
General and administrative expenses	113,838	1	114,629	1
Research and development expenses	204,101	2	185,307	2
Expected credit gain (Note 9)	(945)	-	(410)	-
Total operating expenses	883,970	9	939,119	8
(LOSS) PROFIT FROM OPERATIONS	(483,026)	(5)	131,489	1
NON-OPERATING INCOME AND EXPENSES
Interest income	2,279	-	2,922	-
Rental income	35,055	-	35,050	-
Dividend income	35,163	-	44,466	-
Other income (Notes 22 and 27)	12,593	-	58,438	1
Net gain on disposal of property, plant and equipment	1,641	-	159	-
Foreign currency exchange gain	1,378	-	8,521	-
Interest expense (Note 22)	(156,140)	(1)	(144,167)	(1)
Other expenses	(26,971)	-	(24,915)	-
Share of loss of subsidiaries accounted for using the equity method (Note 11)	(332,599)	(3)	(204,521)	(2)
Total non-operating income and expenses	(427,601)	(4)	(224,047)	(2)
LOSS BEFORE INCOME TAX	(910,627)	(9)	(92,558)	(1)
INCOME TAX BENEFIT (Note 23)	(23,342)	-	(112,547)	(1)
NET (LOSS) PROFIT FOR THE YEAR	(887,285)	(9)	19,989	-
			(Continued)

ORIENTAL UNION CHEMICAL CORPORATION

STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars, Except (Loss) Earnings Per Share)

	2025		2024
	Amount	%	Amount	%
OTHER COMPREHENSIVE LOSS
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit plans (Note 20)	$ (4,581)	-	$ 657	-
Unrealized loss on investments in equity instruments at fair value through other comprehensive income	(350,507)	(3)	(598,897)	(5)
Income tax relating to items that will not be reclassified subsequently to profit or loss (Note 23)	916	-	(131)	-
Share of the other comprehensive loss of subsidiaries accounted for using the equity method	(258,556)	(3)	(462,200)	(4)
Items that may be reclassified subsequently to profit or loss:
Share of the other comprehensive (loss) income of subsidiaries accounted for using the equity method	(89,608)	(1)	221,204	2
Other comprehensive loss for the year, net of income tax	(702,336)	(7)	(839,367)	(7)
TOTAL COMPREHENSIVE LOSS FOR THE YEAR	$ (1,589,621)	(16)	$ (819,378)	(7)
(LOSS) EARNING PER SHARE (Note 24)
Basic	$ (1.01)		$ 0.02
Diluted	$ (1.01)		$ 0.02

The accompanying notes are an integral part of the financial statements.
(Concluded)

ORIENTAL UNION CHEMICAL CORPORATION

STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	Ordinary Shares	Capital Surplus			Retained Earnings			Exchange Differences on Translating Foreign Operations	Unrealized Loss on Financial Assets at Fair Value Through Other Comprehensive Income	Treasury Shares	Total Equity
		Paid-in Capital in Excess of Par Value	Treasury Shares	Other	Legal Reserve	Special Reserve	(Accumulated Deficit) Unappropriated Earnings
BALANCE ON JANUARY 1, 2024	$ 8,857,031	$ 470,767	$ 381,527	$ 235,458	$ 1,619,080	$ 1,911,129	$ 301,938	$ (545,606)	$ (1,324,205)	$ (124,373)	$ 11,782,746
Legal reserve	-	-	-	-	26,867	-	(26,867)	-	-	-	-
Cash dividends distributed by the Corporation	-	-	-	-	-	-	(177,141)	-	-	-	(177,141)
Net profit for the year ended December 31, 2024	-	-	-	-	-	-	19,989	-	-	-	19,989
Other comprehensive income (loss) for the year ended December 31, 2024	-	-	-	-	-	-	526	221,204	(1,061,097)	-	(839,367)
Total comprehensive income (loss) for the year ended December 31, 2024	-	-	-	-	-	-	20,515	221,204	(1,061,097)	-	(819,378)
Disposal of the Corporation's shares held by subsidiaries	-	-	2,455	-	-	-	-	-	-	5,913	8,368
Change in capital surplus from dividends distributed to subsidiaries	-	-	1,735	-	-	-	-	-	-	-	1,735
Disposal of investments in equity instruments designated as at fair value through other comprehensive income	-	-	-	-	-	-	364,693	-	(364,693)	-	-
BALANCE ON DECEMBER 31, 2024	8,857,031	470,767	385,717	235,458	1,645,947	1,911,129	483,138	(324,402)	(2,749,995)	(118,460)	10,796,330
Legal reserve	-	-	-	-	38,521	-	(38,521)	-	-	-	-
Special reserve	-	-	-	-	-	444,617	(444,617)	-	-	-	-
Net loss for the year ended December 31, 2025	-	-	-	-	-	-	(887,285)	-	-	-	(887,285)
Other comprehensive loss for the year ended December 31, 2025	-	-	-	-	-	-	(3,665)	(89,608)	(609,063)	-	(702,336)
Total comprehensive loss for the year ended December 31, 2025	-	-	-	-	-	-	(890,950)	(89,608)	(609,063)	-	(1,589,621)
BALANCE ON DECEMBER 31, 2025	$ 8,857,031	$ 470,767	$ 385,717	$ 235,458	$ 1,684,468	$ 2,355,746	$ (890,950)	$ (414,010)	$ (3,359,058)	$ (118,460)	$ 9,206,709

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

ORIENTAL UNION CHEMICAL CORPORATION

STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars)

	2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
Loss before income tax	$ (910,627)	$ (92,558)
Adjustments:
Depreciation expenses	489,094	569,310
Amortization expenses	5,189	7,346
Expected credit gain reversed recognized on trade receivables	(945)	(410)
Interest expense	156,140	144,167
Interest income	(2,279)	(2,922)
Dividend income	(35,163)	(44,466)
Share of loss of subsidiaries accounted for using the equity method	332,599	204,521
Gain on disposal of property, plant and equipment	(1,641)	(159)
Write-down of inventories	9,762	28,880
Net gain on foreign currency exchange	(324)	(9,080)
Recognition of provisions	19,959	-
Changes in operating assets and liabilities
Notes receivable	15,299	6,159
Trade receivables	135,698	65,890
Other receivables	(1,151)	349
Inventories	25,939	46,192
Prepayments	468	80,752
Other current assets	(7,043)	(42,985)
Trade payables	(161,155)	(44,486)
Other payables	(18,414)	(12,771)
Other current liabilities	41,183	(34,356)
Net defined benefit liabilities	(45,597)	(2,283)
Other non-current liabilities	23,002	(32,924)
Cash generated from operations	69,993	834,166
Interest received	2,280	2,895
Interest paid	(158,428)	(141,349)
Income tax paid	(39,828)	(288)
Net cash (used in) generated from operating activities	(125,983)	695,424
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from disposal of financial assets at fair value through other comprehensive income	-	685,243
Proceeds from the capital reduction of financial assets at fair value through other comprehensive income	8,190	-
Decrease (increase) in financial assets at amortized cost	24,125	(37,945)
Proceeds from disposal of property, plant and equipment	1,641	159
Acquisition of right-of-use assets	-	(512)
Decrease in other non-current assets	74,171	18,584
		(Continued)

ORIENTAL UNION CHEMICAL CORPORATION

STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars)

	2025	2024
Increase in construction in progress	$ (647,579)	$ (817,656)
Dividends received	35,163	44,466
Net cash used in investing activities	(504,289)	(107,661)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term borrowings	300,000	-
Proceeds from long-term borrowings	16,150,000	14,700,000
Repayments of long-term borrowings	(15,650,000)	(15,200,000)
Increase (decrease) in guarantee deposits	3,384	(16,574)
Repayment of the principal portion of lease liabilities	(9,818)	(8,022)
Dividends paid to owners of the Corporation	-	(177,141)
Net cash generated from (used in) financing activities	793,566	(701,737)
EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH HELD IN FOREIGN CURRENCIES	324	9,080
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	163,618	(104,894)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR	251,579	356,473
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	$ 415,197	$ 251,579

The accompanying notes are an integral part of the financial statements. (Concluded)

10 -

ORIENTAL UNION CHEMICAL CORPORATION

NOTES TO FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

1. GENERAL INFORMATION

Oriental Union Chemical Corporation (the "Corporation") was incorporated in December 1975. It manufactures and markets ethylene glycols, ethylene oxide, gas oxygen, gas nitrogen, liquid nitrogen, liquid argon, monoethanolamine, ethylene carbonate, polyethylene glycol, polyoxyethylene lauryl ether and methoxy polyethylene glycols. Its shares were listed on the Taiwan Stock Exchange ("TWSE") on October 21, 1987.

The financial statements of the Corporation are presented in the Corporation's functional currency, New Taiwan dollars.

2. APPROVAL OF FINANCIAL STATEMENTS

The financial statements were approved by the Corporation's board of directors on March 3, 2026.

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

a. Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the "IFRS Accounting Standards") endorsed and issued into effect by the Financial Supervisory Commission (FSC)

The initial application of the IFRS Accounting Standards endorsed and issued into effect by the FSC did not have a material impact on the Corporation's accounting policies.

b. The IFRS Accounting Standards endorsed by the FSC for application starting from 2026

New, Amended and Revised Standards and Interpretations	Effective Date Announced by IASB
Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments”	January 1, 2026
Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”	January 1, 2026
Annual Improvements to IFRS Accounting Standards - Volume 11	January 1, 2026
IFRS 17 “Insurance Contracts” (including the 2020 and 2021 amendments to IFRS 17)	January 1, 2023

As of the date the financial statements were authorized for issue, the Corporation has assessed that the application of above standards and interpretations will not have a material impact on the Corporation's financial position and financial performance.

c. The IFRS Accounting Standards in issue but not yet endorsed and issued into effect by the FSC

New, Amended and Revised Standards and Interpretations	Effective Date Announced by IASB (Note 1)
Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture”	To be determined by IASB
IFRS 18 “Presentation and Disclosure in Financial Statements”	January 1, 2027 (Note 2)
IFRS 19 “Subsidiaries without Public Accountability: Disclosures” (including the 2025 amendments to IFRS 19)	January 1, 2027
Amendments to IAS 21 “Translation to a Hyperinflationary Presentation Currency”	January 1, 2027

Note 1: Unless stated otherwise, the above IFRS Accounting Standards are effective for annual reporting periods beginning on or after their respective effective dates.

Note 2: On September 25, 2025, the FSC announced that IFRS 18 will take effect starting from January 1, 2028. Domestic entities could elect to apply IFRS 18 for an earlier period after the endorsement of IFRS 18 by the FSC.

IFRS 18 “Presentation and Disclosure in Financial Statements” and consequential amendments

IFRS 18 will supersede IAS 1 “Presentation of Financial Statements”. The main changes comprise:

To classify items of income and expenses presented in the statement of profit or loss into the operating, investing, financing, income taxes and discontinued operations categories, the Corporation shall assess whether it has specified main business activities of investing in particular types of assets and providing financing to customers.
The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing and income taxes and profit or loss.
Provides guidance to enhance the requirements of aggregation and disaggregation: The Corporation shall identify the assets, liabilities, equity, income, expenses and cash flows that arise from individual transactions or other events and shall classify and aggregate them into groups based on shared characteristics, so as to result in the presentation in the primary financial statements of line items that have at least one similar characteristic. The Corporation shall disaggregate items with dissimilar characteristics in the primary financial statements and in the notes. The Group labels items as “other” only if it cannot find a more informative label.
Disclosures on Management-defined Performance Measures (MPMs): When in public communications outside financial statements and communicating to users of financial statements management’s view of an aspect of the financial performance of the Corporation as a whole, the Corporation shall disclose related information about its MPMs in a single note to the financial statements, including the description of such measures, calculations, reconciliations to the subtotal or total specified by IFRS Accounting Standards and the income tax and non-controlling interests effects of related reconciliation items.

In addition, the following consequential amendments have been made to IAS 7 “Statement of Cash Flows”:

The Corporation shall use operating profit or loss as the starting point when presenting cash flows from operating activities under the indirect method.
12 -

Interest and dividends received by the Corporation shall be classified as investing activities, while interest and dividends paid shall be classified as financing activities. However, if, after assessment, the Corporation has a specific main operating activity, it shall determine how to classify dividends received, interest received and interest paid in the statement of cash flows by referring to how it classifies dividend income, interest income and interest expense in the statement of profit or loss. The total of each of these cash flows shall be classified in a single category in the statement of cash flows.

Except for the above impact, as of the date the financial statements were authorized for issue, the Corporation is continuously assessing the other impacts of the above amended standards and interpretations on the Corporation's financial position and financial performance and will disclose the relevant impact when the assessment is completed.

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

a. Statement of compliance

The financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

b. Basis of preparation

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

The fair value measurements, which are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and based on the significance of the inputs to the fair value measurement in its entirety, are described as follows:

1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;

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

3) Level 3 inputs are unobservable inputs for an asset or liability.

When preparing these parent Corporation only financial statements, the Corporation used the equity method to account for its investments in subsidiaries and associates. In order for the amounts of the net profit for the year, other comprehensive income for the year and total equity in the parent Corporation only financial statements to be the same with the amounts attributable to the owners of the Corporation in its consolidated financial statements, adjustments arising from the differences in accounting treatments between the parent Corporation only basis and the consolidated basis were made to investments accounted for using the equity method, the share of profit or loss of subsidiaries and associates, the share of other comprehensive income of subsidiaries and associates and the related equity items, as appropriate, in these parent Corporation only financial statements.

c. Classification of current and non-current assets and liabilities

Current assets include:

1) Assets held primarily for the purpose of trading;

2) Assets expected to be realized within 12 months after the reporting period; and

3) Cash and cash equivalents unless the asset is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.

Current liabilities include:

1) Liabilities held primarily for the purpose of trading;

2) Liabilities due to be settled within 12 months after the reporting period, even if an agreement to refinance, or to reschedule payments, on a long-term basis is completed after the reporting period and before the financial statements are authorized for issue; and

3) Liabilities for which the Corporation does not have the substantial right at the end of the reporting period to defer settlement for at least 12 months after the reporting period.

Assets and liabilities that are not classified as current are classified as non-current.

d. Foreign currencies

In preparing the Corporation’s financial statements, transactions in currencies other than the Corporation’s functional currency (i.e., foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.

At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Exchange differences on monetary items arising from settlement or translation are recognized in profit or loss in the period.

Non-monetary items denominated in foreign currencies that are measured at fair value are retranslated at the rates prevailing at the date when the fair value is determined. Exchange differences arising from the retranslation of non-monetary items are included in profit or loss for the period except for exchange differences arising from the retranslation of non-monetary items in respect of which gains and losses are recognized directly in other comprehensive income; in which cases, the exchange differences are also recognized directly in other comprehensive income.

Non-monetary item denominated in a foreign currency and measured at historical cost is stated at the reporting currency as originally translated from the foreign currency.

For the purpose of presenting financial statements, the financial statements of the Corporation’s foreign operations (including subsidiaries and associates in other countries) that are prepared using functional currencies which are different from the currency of the Corporation are translated into the presentation currency, the New Taiwan dollar, as follows: Assets and liabilities are translated at the exchange rates prevailing at the end of the reporting period; and income and expense items are translated at the average exchange rates for the period. The resulting currency translation differences are recognized in other comprehensive income.

e. Inventories

Inventories consist of raw materials, work in progress and finished goods and are stated at the lower of cost or net realizable value. Inventory write-downs are made by item, except where it may be appropriate to group similar or related items. The net realizable value is the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. Inventories are recorded at the weighted-average cost on the balance sheet date.

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f. Investments in subsidiaries and associates

1) Investments in subsidiaries

The Corporation uses the equity method to account for its investments in subsidiaries.

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

Under the equity method, an investment in a subsidiary is initially recognized at cost and adjusted thereafter to recognize the Corporation’s share of the profit or loss and other comprehensive income of the subsidiary. The Corporation also recognizes the changes in the Corporation’s share of equity of subsidiaries.

Changes in the Corporation’s ownership interest in a subsidiary that do not result in the Corporation losing control of the subsidiary are accounted for as equity transactions. The Corporation recognizes directly in equity any difference between the carrying amount of the investment and the fair value of the consideration paid or received.

When the Corporation’s share of losses of a subsidiary exceeds its interest in that subsidiary, the Corporation continues recognizing its share of further losses.

Any excess of the cost of acquisition over the Corporation’s share of the net fair value of the identifiable assets and liabilities of a subsidiary that constitutes a business at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment and is not amortized. Any excess of the Corporation’s share of the net fair value of the identifiable assets and liabilities of a subsidiary that constitutes a business over the cost of acquisition is recognized immediately in profit or loss.

The Corporation assesses its investment for any impairment by comparing the carrying amount with the estimated recoverable amount as assessed based on the investee’s financial statements as a whole. Impairment loss is recognized when the carrying amount exceeds the recoverable amount. If the recoverable amount of the investment subsequently increases, the Corporation recognizes a reversal of the impairment loss; the adjusted post-reversal carrying amount should not exceed the carrying amount that would have been recognized (net of amortization or depreciation) had no impairment loss been recognized in prior years. An impairment loss recognized on goodwill cannot be reversed in a subsequent period.

When the Corporation loses control of a subsidiary, it recognizes the investment retained in the former subsidiary at its fair value at the date when control is lost. The difference between the fair value of the retained investment plus any consideration received and the carrying amount of the previous investment at the date when control is lost is recognized as a gain or loss in profit or loss. Besides this, the Corporation accounts for all amounts previously recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required the Corporation had directly disposed of the related assets or liabilities.

Profit or loss resulting from downstream transactions is eliminated in full only in the parent Corporation’s financial statements. Profit and loss resulting from upstream transactions and transactions between subsidiaries is recognized only in the parent Corporation’s financial statements and only to the extent of interests in the subsidiaries that are not related to the Corporation.

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2) Investments in associates

An associate is an entity over which the Corporation has significant influence and which is not a subsidiary. The Corporation uses the equity method to account for its investments in associates.

Under the equity method, investments in an associate is initially recognized at cost and adjusted thereafter to recognize the Corporation’s share of the profit or loss and other comprehensive income of the associate. The Corporation also recognizes the changes in the Corporation’s share of the equity of associates.

When the Corporation subscribes for additional new shares of an associate at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment differs from the amount of the Corporation’s proportionate interest in the associate. The Corporation records such a difference as an adjustment to investments with the corresponding amount charged or credited to capital surplus - changes in capital surplus from investments in associates accounted for using the equity method. If the Corporation’s ownership interest is reduced due to its additional subscription of the new shares of the associate, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate is reclassified to profit or loss on the same basis as would be required had the investee directly disposed of the related assets or liabilities. When the adjustment should be debited to capital surplus, but the capital surplus recognized from investments accounted for using the equity method is insufficient, the shortage is debited to retained earnings.

When the Corporation’s share of losses of an associate equals or exceeds its interest in that associate, the Corporation discontinues recognizing its share of further losses. Additional losses and liabilities are recognized only to the extent that the Corporation has incurred legal obligations, or constructive obligations, or made payments on behalf of that associate.

The entire carrying amount of an investment is tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized is not allocated to any asset that forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

The Corporation discontinues the use of the equity method from the date on which its investment ceases to be an associate. Any retained investment is measured at fair value at that date, and the fair value is regarded as the investment’s fair value on initial recognition as a financial asset. The difference between the previous carrying amount of the associate attributable to the retained interest and its fair value is included in the determination of the gain or loss on disposal of the associate. The Corporation accounts for all amounts previously recognized in other comprehensive income in relation to that associate on the same basis as would be required had that associate directly disposed of the related assets or liabilities.

When a group entity transacts with its associate, profits and losses resulting from the transactions with the associate are recognized in the Corporation’s financial statements only to the extent of interests in the associate are not related to the Corporation.

g. Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost less accumulated depreciation and accumulated impairment loss.

Property, plant and equipment in the course of construction are measured at cost less any recognized impairment loss. Cost includes professional fees and borrowing costs eligible for capitalization. Such assets are depreciated and classified to the appropriate categories of property, plant and equipment when completed and ready for their intended use.

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Except for freehold land which is not depreciated, the depreciation of property, plant and equipment is recognized using the straight-line method. Each significant part is depreciated separately. The estimated useful lives, residual values and depreciation methods are reviewed at the end of each reporting period, with the effects of any changes in the estimates accounted for on a prospective basis.

On derecognition of an item of property, plant and equipment, the difference between the sales proceeds and the carrying amount of the asset is recognized in profit or loss.

h. Investment properties

Investment properties are properties held to earn rental and/or for capital appreciation. Investment properties also include land held for a currently undetermined future use.

Investment properties are initially measured at cost, including transaction costs. Subsequent to initial recognition, investment properties are measured at cost less accumulated depreciation and accumulated impairment loss. Depreciation is recognized using the straight-line method.

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

i. Intangible assets

Intangible assets with finite useful lives that are acquired separately are initially measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment loss. Amortization is recognized on a straight-line basis. The estimated useful lives, residual values, and amortization methods are reviewed at the end of each reporting period, with the effect of any changes in the estimates accounted for on a prospective basis.

On derecognition of an intangible asset, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss.

j. Impairment of property, plant and equipment, right-of-use asset, investment properties and intangible assets

At the end of each reporting period, the Corporation reviews the carrying amounts of its property, plant and equipment, right-of-use asset, investment properties and intangible assets, to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Corporation estimates the recoverable amount of the cash-generating unit to which the asset belongs.

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

When an impairment loss is subsequently reversed, the carrying amount of the corresponding asset or cash-generating unit is increased to the revised estimate of its recoverable amount, but only to the extent of the carrying amount that would have been determined had no impairment loss been recognized for the asset or cash-generating unit in prior years. A reversal of an impairment loss is recognized in profit or loss.

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k. Financial instruments

Financial assets and financial liabilities are recognized when the Corporation becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issuance of financial assets and financial liabilities (other than financial assets and financial liabilities at FVTPL) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are recognized immediately in profit or loss.

1) Financial assets

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

a) Measurement categories

Financial assets are classified into the following categories: Financial assets at amortized cost and investments in equity instruments at FVTOCI. Fair value is determined in the manner described in Note 26.

i. Financial assets at amortized cost

Financial assets that meet the following conditions are subsequently measured at amortized cost:

i) The financial assets are held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and
ii) The contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Subsequent to initial recognition, financial assets at amortized cost, including cash and cash equivalents, notes receivable, trade receivables and other receivables, are measured at amortized cost, which equals the gross carrying amount determined using the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

Interest income is calculated by applying the effective interest rate to the gross carrying amount of such a financial asset, except for:

i) Purchased or originated credit-impaired financial asset, for which interest income is calculated by applying the credit adjusted effective interest rate to the amortized cost of such financial assets; and
ii) Financial asset that is not credit impaired on purchase or origination but has subsequently become credit impaired, for which interest income is calculated by applying the effective interest rate to the amortized cost of such financial assets in subsequent reporting periods.

A financial asset is credit impaired when one or more of the following events have occurred:

i) Significant financial difficulty of the issuer or the borrower;

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ii) Breach of contract, such as a default;
iii) It is becoming probable that the borrower will enter bankruptcy or undergo a financial reorganization; or
iv) The disappearance of an active market for that financial asset because of financial difficulties.

Cash equivalents include time deposits and repurchase agreements collateralized by bonds with original maturities within 3 months from the date of acquisition, which are highly liquid, readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These cash equivalents are held for the purpose of meeting short-term cash commitments.

ii. Investments in equity instruments at FVTOCI

On initial recognition, the Corporation may make an irrevocable election to designate investments in equity instruments as at FVTOCI. Designation as at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognized by an acquirer in a business combination.

Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in other equity. The cumulative gain or loss will not be reclassified to profit or loss on disposal of the equity investments; instead, it will be transferred to retained earnings.

Dividends on these investments in equity instruments are recognized in profit or loss when the Corporation's right to receive the dividends is established, unless the dividends clearly represent a recovery of part of the cost of the investment.

b) Impairment of financial assets

The Corporation recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including notes receivable and trade receivables).

The Corporation always recognizes lifetime expected credit losses (ECLs) for notes receivable and trade receivables. For all other financial instruments, the Corporation recognizes lifetime ECLs when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on a financial instrument has not increased significantly since initial recognition, the Corporation measures the loss allowance for that financial instrument at an amount equal to 12-month ECLs.

Expected credit losses reflect the weighted average of credit losses with the respective risks of default occurring as the weights. Lifetime ECLs represent the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECLs represent the portion of lifetime ECLs that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.

For internal credit risk management purposes, the Corporation considers the following situations as indication that a financial asset is in default (without taking into account any collateral held by the Corporation):

i. Internal or external information shows that the debtor is unlikely to pay its creditors.

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ii. Financial asset is overdue unless the Corporation has reasonable and corroborative information to support a more lagged default criterion.

The impairment loss of all financial assets is recognized in profit or loss by a reduction in their carrying amounts through a loss allowance account.

c) Derecognition of financial assets

The Corporation derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset's carrying amount and the sum of the consideration received and receivable is recognized in profit or loss. On derecognition of an investment in an equity instrument at FVTOCI, the difference between the asset's carrying amount and the sum of the consideration received and receivable is recognized in profit or loss, and the cumulative gain or loss which had been recognized in other comprehensive income is transferred directly to retained earnings, without recycling through profit or loss.

2) Financial liabilities

a) Subsequent measurement

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

b) Derecognition of financial liabilities

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

Provisions

Provisions are measured at the best estimate of the discounted cash flows of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

Carbon fee provision

In accordance with the Regulations Governing the Collection of Carbon Fees and related regulations of the ROC, the carbon fee provision is recognized and measured on the basis of the best estimate of the expenditure required to settle the obligation for the current year.

m. Revenue recognition

The Corporation identifies contracts with customers, allocates the transaction price to the performance obligations and recognizes revenue when performance obligations are satisfied.

Revenue from the sale of goods

When the goods delivered to the customer, they have full discretion over the manner of distribution and price to sell the goods, has the primary responsibility for sales to future customers and bears the risks of obsolescence. Trade receivables are recognized concurrently. The transaction price received is recognized as a contract liability until the goods have been delivered to the customer. Revenue is recognized when the goods are delivered to the customer.

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n. Leases

At the inception of a contract, the Corporation assesses whether the contract is, or contains, a lease.

1) The Corporation as lessor

Lease payments from operating leases are recognized as income on a straight-line basis over the terms of the relevant leases.

2) The Corporation as lessee

The Corporation recognizes right-of-use assets and lease liabilities for all leases at the commencement date of a lease, except for short-term leases and low-value asset leases accounted for by applying a recognition exemption where lease payments are recognized as expenses on a straight-line basis over the lease terms.

Right-of-use assets are initially measured at cost. Right-of-use assets are subsequently measured at cost less accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are presented on a separate line in the balance sheets.

Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms.

Lease liabilities are initially measured at the present value of the lease payments. The lease payments are discounted using the interest rate implicit in a lease, if that rate can be readily determined. If that rate cannot be readily determined, the lessee’s incremental borrowing rate will be used.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in future lease payments, the Corporation remeasures the lease liabilities with a corresponding adjustment to the right-of-use assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. Lease liabilities are presented on a separate line in the balance sheets.

o. Borrowing costs

Borrowing costs directly attributable to an acquisition, construction or production of qualifying assets are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.

Other than those stated above, all other borrowing costs are recognized in profit or loss in the period in which they are incurred.

p. Government grants

Government grants are not recognized until there is reasonable assurance that the Corporation will comply with the conditions attached to them and that the grants will be received.

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Government grants related to income are recognized in other income on a systematic basis over the periods in which the Corporation recognizes as expenses the related costs that the grants intend to compensate. Specifically, government grants whose primary condition is that the Corporation should purchase, construct or otherwise acquire non-current assets are recognized as deferred revenue and transferred to profit or loss on a systematic and rational basis over the useful lives of the related assets.

Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Corporation with no future related costs are recognized in profit or loss in the period in which they are received.

q. Employee benefits

1) Short-term employee benefits

Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related services.

2) Retirement benefits

Payments to defined contribution retirement benefit plans are recognized as expenses when employees have rendered services entitling them to the contributions.

Defined benefit costs (including service cost, net interest and remeasurement) under defined benefit retirement benefit plans are determined using the projected unit credit method. Service cost (including current service cost and net interest on the net defined benefit liabilities (assets) are recognized as employee benefits expense in the period in which they occur. Remeasurement, comprising actuarial gains and losses, and the return on plan assets (excluding interest), is recognized in other comprehensive income in the period in which it occurs. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.

Net defined benefit liabilities represent the actual deficit in the Corporation’s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any refunds from the plans or reductions in future contributions to the plans.

r. Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

1) Current tax

Income tax payable (recoverable) is based on taxable profit (loss) for the year determined according to the applicable tax laws of each tax jurisdiction.

According to the Income Tax Act in the ROC, an additional tax on unappropriated earnings is provided for in the year the shareholders approve to retain earnings.

Adjustments of prior years’ tax liabilities are added to or deducted from the current year’s tax provision.

2) Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities and the corresponding tax bases used in the computation of taxable profit.

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Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, except where the Corporation is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are recognized only to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and such temporary differences are expected to reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the assets to be recovered. A previously unrecognized deferred tax asset is also reviewed at the end of each reporting period and recognized to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liabilities are settled or the assets are realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Corporation expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

3) Current and deferred taxes

Current and deferred taxes are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity; in which case, the current and deferred taxes are also recognized in other comprehensive income or directly in equity, respectively.

MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Corporation’s accounting policies, management is required to make judgments, estimates and assumptions on the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates.

Key Sources of Estimation Uncertainty

Impairment assessment of property, plant and equipment

Impairment of property, plant and equipment is evaluated based on the recoverable amount of the assets. Any changes in the market prices, future cash flows or discount rates will affect the recoverable amount of the assets and may lead to the recognition of additional impairment losses or the reversal of impairment losses. Furthermore, the estimates of cash flows, growth rates and discount rates are subject to higher degree of estimation uncertainties due to the uncertain impact caused by market changes.

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6. CASH AND CASH EQUIVALENTS

	December 31
	2025	2024
Cash on hand	$ 100	$ 100
Checking accounts and demand deposits	415,097	251,479
	$ 415,197	$ 251,579

The market rate intervals of cash in the bank at the end of the reporting period were as follows:

	December 31
	2025	2024
Bank balance	0.01%-0.73%	0.04%-0.80%

7. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

Investments in Equity Instruments at FVTOCI

	December 31
	2025	2024
Non-current
Domestic investments
Listed shares	$ 381,187	$ 410,669
Unlisted shares	2,302,134	2,631,349
	$ 2,683,321	$ 3,042,018

These investments in equity instruments are held for medium- to long-term strategic purposes. Accordingly, the management elected to designate these investments in equity instruments as at FVTOCI as they believe that recognizing short-term fluctuations in these investments' fair value in profit or loss would not be consistent with the Corporation's strategy of holding these investments for long-term purposes.

8. FINANCIAL ASSETS AT AMORTIZED COST

	December 31
	2025	2024
Non-current
Pledged certificates of deposits	$ 78,762	$ 102,887

The range of interest rates for the pledged certificates of deposits were consistently 0.90%-1.70% per annum as of December 31, 2025 and 2024. The Corporation assesses there has not been a significant expected credit losses and a significant increase in credit risk since the original recognize.

Refer to Note 28 for information relating to financial assets at amortized cost as security.

9. NOTES RECEIVABLE AND TRADE RECEIVABLES

	December 31
	2025	2024
Notes receivable
Notes receivable	$ 56,754	$ 72,053
Less: Allowance for impairment loss	(335)	(432)
	$ 56,419	$ 71,621
Trade receivables
Trade receivables	$ 560,281	$ 695,979
Less: Allowance for impairment loss	(3,350)	(4,198)
	$ 556,931	$ 691,781

The Corporation applies for expected credit losses, which permits the use of lifetime expected loss provision for all notes receivable and trade receivables. The expected credit losses on notes receivable and trade receivables are estimated using a past default experience of the debtor and an analysis of the debtor's current financial position, adjusted for general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecasted GDP and industry outlook at the reporting date.

The following table details the loss allowance of notes receivable and trade receivables:

December 31, 2025

	0 to 60 Days	61 to 90 Days	91 to 120 Days	Over 121 Days	Total
Carrying amount	$ 594,821	$ 19,970	$ 2,244	$ -	$ 617,035
Loss allowance (Lifetime ECLs)	(335)	(1,106)	(2,244)	-	(3,685)
Amortized cost	$ 594,486	$ 18,864	$ -	$ -	$ 613,350
December 31, 2024
	0 to 60 Days	61 to 90 Days	91 to 120 Days	Over 121 Days	Total
Carrying amount	$ 753,816	$ 12,124	$ 2,092	$ -	$ 768,032
Loss allowance (Lifetime ECLs)	(432)	(2,106)	(2,092)	-	(4,630)
Amortized cost	$ 753,384	$ 10,018	$ -	$ -	$ 763,402

The above aging schedule was based on the number of days past due from the invoice date.

The movements of the loss allowance of notes receivable and trade receivables were as follows:

	For the Year Ended December 31
	2025	2024
Balance on January 1	$ 4,630	$ 5,040
Net remeasurement of loss allowance	(945)	(410)
Balance on December 31	$ 3,685	$ 4,630

10. INVENTORIES

	December 31
	2025	2024
Finished goods	$ 576,115	$ 598,393
Work in progress	34,059	25,319
Raw materials	63,547	85,710
	$ 673,721	$ 709,422

The nature of the cost of goods sold is as follows:

	For the Year Ended December 31
	2025	2024
Cost of inventories sold	$ 9,788,447	$ 10,368,675
Inventory write-downs	9,762	28,880
	$ 9,798,209	$ 10,397,555

11. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

a. Investments in subsidiaries

	December 31
	2025	2024
Pacific Petrochemical (Holding) Ltd. (PPL)	$ 2,850,958	$ 3,358,987
Tong Fu Investment Co., Ltd. (TFIC)	1,185,634	1,290,880
OUCC (Bermuda) Holding Ltd. (OUCC (Bermuda))	544,657	612,145
	$ 4,581,249	$ 5,262,012

Proportion of ownership and voting rights held by the Corporation were as follows:

	December 31
	2025	2024
PPL	100%	100%
TFIC	100%	100%
OUCC (Bermuda)	100%	100%

Investments of subsidiaries were accounted for using the equity method; the share of profit or loss and other comprehensive income of those investments were calculated based on subsidiaries' financial statements which have been audited.

Refer to Note 28 for information relating to investment of TFIC pledged as loans security.

Refer to Tables 6 and 7 for information relating to the detailed information of subsidiaries, including percentage of ownership and main businesses.

12. PROPERTY, PLANT AND EQUIPMENT AND CONSTRUCTION IN PROGRESS

	Land	Land Improvements	Buildings	Machinery and Equipment	Other Equipment	Construction in Progress and Equipment to Be Inspected	Total
Cost
Balance on January 1, 2024	$ 1,591,461	$ 413,350	$ 617,676	$ 15,038,181	$ 690,840	$ 2,805,814	$ 21,157,322
Additions	-	-	-	-	-	806,586	806,586
Disposals	-	-	-	(14,204)	(2,064)	-	(16,268)
Reclassification	-	13,684	193,171	783,341	40,731	(1,030,927)	-
Balance on December 31, 2024	$ 1,591,461	$ 427,034	$ 810,847	$ 15,807,318	$ 729,507	$ 2,581,473	$ 21,947,640
Accumulated depreciation
Balance on January 1, 2024	$ -	$ 332,203	$ 478,785	$ 12,406,848	$ 620,574	$ -	$ 13,838,410
Disposals	-	-	-	(14,204)	(2,064)	-	(16,268)
Depreciation expenses	-	5,896	21,682	510,733	22,643	-	560,954
Balance on December 31, 2024	$ -	$ 338,099	$ 500,467	$ 12,903,377	$ 641,153	$ -	$ 14,383,096
Carrying amounts on December 31, 2024	$ 1,591,461	$ 88,935	$ 310,380	$ 2,903,941	$ 88,354	$ 2,581,473	$ 7,564,544
Cost
Balance on January 1, 2025	$ 1,591,461	$ 427,034	$ 810,847	$ 15,807,318	$ 729,507	$ 2,581,473	$ 21,947,640
Additions	-	-	-	-	-	615,164	615,164
Disposals	-	(520)	(98)	(31,966)	(2,460)	-	(35,044)
Reclassification	-	1,739	5,049	194,915	48,212	(252,153)	(2,238)
Balance on December 31, 2025	$ 1,591,461	$ 428,253	$ 815,798	$ 15,970,267	$ 775,259	$ 2,944,484	$ 22,525,522
Accumulated depreciation
Balance on January 1, 2025	$ -	$ 338,099	$ 500,467	$ 12,903,377	$ 641,153	$ -	$ 14,383,096
Disposals	-	(520)	(98)	(31,966)	(2,460)	-	(35,044)
Depreciation expenses	-	6,129	19,665	432,926	20,280	-	479,000
Balance on December 31, 2025	$ -	$ 343,708	$ 520,034	$ 13,304,337	$ 658,973	$ -	$ 14,827,052
Carrying amounts on December 31, 2025	$ 1,591,461	$ 84,545	$ 295,764	$ 2,665,930	$ 116,286	$ 2,944,484	$ 7,698,470

The above items of property, plant and equipment were depreciated on a straight-line basis over the estimated useful lives as follows:

Land improvements 15-25 years
Buildings 5-60 years
Machinery and equipment 2-20 years
Other equipment 3-20 years

13. LEASE ARRANGEMENTS

a. Right-of-use assets

	December 31
	2025	2024
Carrying amounts
Land	$ 3,042	$ 922
Buildings	-	256
Transportation equipment	14,863	24,384
	$ 17,905	$ 25,562
	For the Year Ended December 31
	2025	2024
Additions to right-of-use assets	$ 2,028	$ 12,568
Depreciation charge for right-of-use assets
Land	$ 317	$ 229
Buildings	256	256
Transportation equipment	9,521	7,871
	$ 10,094	$ 8,356

Except for depreciation and addition, the Corporation had no significant sublease and impairment of right-of-use assets for the years ended December 31, 2025 and 2024.

b. Lease liabilities

	December 31
	2025	2024
Carrying amounts
Current	$ 7,393	$ 9,668
Non-current	$ 10,887	$ 15,993

Ranges of discount rates for lease liabilities were 0.90%-1.97% and 0.82%-2.13% per annum as of December 31, 2025 and 2024, respectively.

c. Other lease information

	For the Year Ended December 31
	2025	2024
Expenses relating to short-term leases	$ 2,203	$ 3,812
Expenses relating to low-value asset leases	$ 11,157	$ 10,023
Total cash outflow for leases	$ 23,589	$ 22,749

The Corporation leases certain assets which qualify as short-term or low-value asset leases. The Corporation has elected to apply the recognition exemption and thus, did not recognize right-of-use assets and lease liabilities for these leases.

29 -

14. INVESTMENT PROPERTIES

	December 31
	2025	2024
Cost
Balance on January 1 and December 31	$ 1,713,377	$ 1,713,377
Accumulated depreciation and impairment
Balance on January 1 and December 31	$ 30,635	$ 30,635

The investment properties of land improvements held by the Corporation which are depreciated over their estimated useful lives of 16 years using the straight-line method.

The fair values of investment properties were $3,457,386 thousand and $3,332,039 thousand as of December 31, 2025 and 2024, respectively. The fair values were determined based on a discounted cash flow analysis by Mr. Chia-ho Tsai and Mrs. Chun-chun Hu, independent and qualified professional valuers from Cushman & Wakefield Real Estate Appraiser Office.

The information of investment properties pledged, please refer to Note 28.

15. OTHER ASSETS

	December 31
	2025	2024
Other assets
Silver and catalysts	$ 894,035	$ 941,240
Materials	276,455	267,199
Input tax	20,010	26,197
Others	57,998	85,031
	$ 1,248,498	$ 1,319,667
Current	$ 148,789	$ 141,746
Non-current	1,099,709	1,177,921
	$ 1,248,498	$ 1,319,667

Other assets include silver and catalysts used in the production, parts and components for the maintenance of equipment and input tax.

30 -

16. BORROWINGS

a. Short-term borrowings

	December 31
	2025	2024
Unsecured borrowings
Line of credit borrowings	$ 300,000	$ -
Interest rate	1.88%	-

b. Long-term borrowings

	December 31
	2025	2024
Secured borrowings (Note 28)
Bank loans	$ 2,200,000	$ 2,200,000
Unsecured borrowings
Bank loans	6,500,000	6,000,000
Long-term borrowing	$ 8,700,000	$ 8,200,000
Interest rate	1.90%-2.03%	1.86%-2.10%
Maturity date	May 2028	December 2026

17. OTHER PAYABLES

	December 31
	2025	2024
Payables for purchase of equipment	$ 66,059	$ 98,474
Freight payables	37,924	48,684
Payables for salaries	28,357	26,822
Payables for export sales expenses	24,108	27,419
Payables for annual leave	18,725	19,312
Pension payables	15,077	13,582
Payables for dividends	10,333	7,720
Interest payables	7,076	9,364
Payables for taxes	6,407	6,134
Payables for royalties	-	6,632
Others	62,654	65,694
	$ 276,720	$ 329,837

31 -

18. OTHER LIABILITIES

	December 31
	2025	2024
Contract liabilities	$ 111,427	$ 105,731
Provisions for repairs and maintenance	43,328	20,326
Others	70,989	35,502
	$ 225,744	$ 161,559
Current	$ 182,416	$ 141,233
Non-current	43,328	20,326
	$ 225,744	$ 161,559

Contract liabilities were receipts in advance.

19. PROVISIONS

	December 31
	2025	2024
Carbon fees	$ 19,959	$ -

Starting from 2025, the Corporation recognizes the carbon fee provision in accordance with the Regulations Governing the Collection of Carbon Fees and related regulations of the ROC. The Corporation submitted the self-determined reduction plan on June 23, 2025. The Corporation assessed that it was highly probable to obtain the approval for the self-determined reduction plan and grant the preferential rate from the competent authority, and assessed that it was probable to meet the designated target of the current year. The Corporation expects to submit the implementation progress report of the self-determined reduction plan for the current year before April 30, 2026; therefore, the carbon fee provision was calculated based on the preferential rate.

20. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

The Corporation adopted a pension plan under the Labor Pension Act (the "LPA"), which is a state-managed defined contribution plan. Under the LPA, an entity makes monthly contributions to employees' individual pension accounts at 6% of monthly salaries and wages.

b. Defined benefit plan

The defined benefit plan adopted by the Corporation in accordance with the Labor Standards Law is operated by the government of the ROC. Pension benefits are calculated on the basis of the length of service and average monthly salaries of the 6 months before retirement. The Corporation contribute amounts equal to 10% of total monthly salaries and wages to a pension fund administered by the pension fund monitoring committee. Pension contributions are deposited in the Bank of Taiwan in the committee's name. Before the end of each year, the Corporation assesses the balance in the pension fund. If the amount of the balance in the pension fund is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Corporation is required to fund the difference in one appropriation that should be made before the end of March of the next year. The pension fund is managed by the Bureau of Labor Funds, Ministry of Labor ("the Bureau"); the Corporation has no right to influence the investment policy and strategy.

The amounts included in the balance sheets in respect of the Corporation's defined benefit plans were as follows:

	December 31
	2025	2024
Present value of defined benefit obligation	$ 285,531	$ 324,640
Fair value of plan assets	(171,397)	(169,490)
Net defined benefit liabilities	$ 114,134	$ 155,150

Movements in net defined benefit liabilities were as follows:

	Present Value of the Defined Benefit Obligation	Fair Value of the Plan Assets	Net Defined Benefit Liabilities
Balance on January 1, 2024	$ 331,576	$ (173,486)	$ 158,090
Service cost
Current service cost	7,807	-	7,807
Net interest expense (income)	4,144	(2,235)	1,909
Recognized in profit or loss	11,951	(2,235)	9,716
Remeasurement
Return on plan assets (excluding amounts included in net interest)	-	(15,042)	(15,042)
Actuarial gain - changes in financial assumptions	(7,192)	-	(7,192)
Actuarial loss - experience adjustments	21,577	-	21,577
Recognized in other comprehensive income (loss)	14,385	(15,042)	(657)
Contributions from the employer	-	(11,999)	(11,999)
Benefits paid	(33,272)	33,272	-
Balance on December 31, 2024	$ 324,640	$ (169,490)	$ 155,150
			(Continued)

33 -

	Present Value of the Defined Benefit Obligation	Fair Value of the Plan Assets	Net Defined Benefit Liabilities
Balance on January 1, 2025	$ 324,640	$ (169,490)	$ 155,150
Service cost
Current service cost	7,459	-	7,459
Net interest expense (income)	4,870	(2,619)	2,251
Recognized in profit or loss	12,329	(2,619)	9,710
Remeasurement
Return on plan assets (excluding amounts included in net interest)	-	(12,612)	(12,612)
Actuarial loss - changes in financial assumptions	6,549	-	6,549
Actuarial loss - experience adjustments	10,644	-	10,644
Recognized in other comprehensive income (loss)	17,193	(12,612)	4,581
Contributions from the employer	-	(55,307)	(55,307)
Benefits paid	(68,631)	68,631	-
Balance on December 31, 2025	$ 285,531	$ (171,397)	$ 114,134

(Concluded)

Through the defined benefit plans under the Labor Standards Law, the Corporation is exposed to the following risks:

1) Investment risk: The plan assets are invested in domestic and foreign equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the Bureau or under the mandated management. However, in accordance with relevant regulations, the return generated by plan assets should not be below the interest rate for a 2-year time deposit with local banks.

2) Interest risk: A decrease in the corporate bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the plan's debt investments.

3) Salary risk: The present value of the defined benefit obligation is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the present value of the defined benefit obligation.

The actuarial valuations of the present value of the defined benefit obligation were carried out by qualified actuaries. The significant assumptions used for the purposes of the actuarial valuations were as follows:

	December 31
	2025	2024
Discount rate(s)	1.25%	1.50%
Expected rate(s) of long-term salary increase	2.75%	2.75%

If possible reasonable change in each of the significant actuarial assumptions will occur and all other assumptions will remain constant, the present value of the defined benefit obligation would increase (decrease) as follows:

	December 31
	2025	2024
Discount rate(s)
0.25% increase	$ (6,548)	$ (6,967)
0.25% decrease	$ 6,760	$ 7,192
Expected rate(s) of long-term salary increase
0.25% increase	$ 6,544	$ 6,970
0.25% decrease	$ (6,373)	$ (6,787)

The sensitivity analysis presented above may not be representative of the actual change in the present value of the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

	December 31
	2025	2024
The expected contributions to the plan for the next year	$ 8,984	$ 10,163
The average duration of the defined benefit obligation	9.7 years	9.2 years

21. EQUITY

a. Ordinary shares

	December 31
	2025	2024
Number of shares authorized (in thousands)	1,000,000	1,000,000
Shares authorized	$ 10,000,000	$ 10,000,000
Number of shares issued and fully paid (in thousands)	885,703	885,703
Shares issued	$ 8,857,031	$ 8,857,031

A total of 10,000 thousand shares of the Corporation's shares were authorized to be reserved for the issuance of employee share options.

b. Capital surplus

	December 31
	2025	2024
May be used to offset a deficit, distributed as cash dividends, or transferred to capital share (Note)
Issuance of ordinary shares	$ 470,767	$ 470,767
Treasury shares transactions	385,717	385,717
Only be used to offset a deficit
Changes in percentage of ownership interests in subsidiaries	16,367	16,367
Dividends unclaimed by shareholders	35,794	35,794
Changes in capital surplus from investments in associates accounted for using the equity method	183,297	183,297
	$ 1,091,942	$ 1,091,942

Note: Such capital surplus may be used to offset a deficit; in addition, when the Corporation has no deficit, such capital surplus may be distributed as cash dividends or transferred to capital shares (limited to a certain percentage of the Corporation’s capital surplus and once a year).

c. Retained earnings and dividends policy

Under the dividend policy as set forth in the Corporation’s Articles of Incorporation (“Articles”), apart from paying all its income taxes in the case where there are profits at the end of the year, the Corporation shall make up for accumulated deficits in past years. Where there is still balance, 10% of the unappropriated earnings from the yearly net income coupled with other items that recognized in retained earning directly thereof shall be set aside by the Corporation as legal reserve. Subject to certain business conditions under which the Corporation may retain a portion, and distribute to the shareholders the remainder after deducting special reserve as required by law together with undistributed profits from previous years in proportion to the number of the shares held by each shareholders as shareholders’ dividend. When there is a share capital increase, the distributed dividends of the year for the new shares shall be dealt with according to the resolution of the shareholders’ meeting. For the policies on the distribution of employees’ compensation and remuneration of directors before and after amendment, refer to Note 22 (d) “Employee benefits expense”.

In accordance with the Articles, the dividend distribution takes into consideration the characteristics of industry that the Corporation operates in and the forthcoming capital requirement and tax policy that is influenced by the Corporation’s products or services, and it should be settled for the purpose of maintaining stable dividends. For the purposes of improving the financial structure effectively, coping with reinvestment, expanding capacity or other significant capital expenditures in which capital is required, when distributing shareholders’ dividend, the dividend payout ratio each fiscal year shall be no less than 50% of the final surplus which is the sum of after-tax profit of the fiscal year to offset previous loss, if any, and to appropriate legal reserve and special reserve as required by law; the amount of cash dividends shall not be less than 10% of the total dividends and bonuses to be distributed to shareholders in the fiscal year.

An appropriation of earnings to a legal reserve shall be made until the legal reserve equals the Corporation’s paid-in capital. The legal reserve may be used to offset deficits. If the Corporation has no deficit and the legal reserve has exceeded 25% of the Corporation’s paid-in capital, the excess may be transferred to capital or distributed in cash.

35 -

The appropriation of earnings for 2024 and 2023 that had been resolved by the shareholder in their meeting on May 19, 2025 and June 12, 2024, respectively, were as follows:

	For the Year Ended December 31
	2024	2023
Legal reserve	$ 38,521	$ 26,867
Special reserve	444,617	-
Cash dividends	-	177,141
Cash dividends per share (NT$)	-	0.20

The proposal for offsetting accumulated losses for 2025 was proposed by the Corporation's board of directors on March 3, 2026; and will be resolved by the shareholder in their meeting on May 19, 2026.

d. Special reserves

On the initial application of IFRS Accounting Standards, the Corporation appropriated to special reserve, the amounts that were the same as the unrealized revaluation increment, the fair value of investment properties at the date of transition as the deemed cost and the cumulative translation differences transferred to retained earnings, which were $985,545 thousand, $787,176 thousand and $138,408 thousand, respectively. Additional special reserve should be appropriated for the amount equal to the difference between net debit balance reserves and the special reserve appropriated on the first-time adoption of IFRS Accounting Standards. Any special reserve appropriated may be reversed to the extent that the net debit balance reverses and is thereafter distributed.

e. Treasury shares

The Corporation's shares held by its subsidiaries at the end of the reporting periods were as follows:

Name of Subsidiary	Number of Shares Held (In Thousands of Shares)	Carrying Amount	Market Price
December 31, 2025
TFIC	8,676	$ 118,460	$ 108,011
December 31, 2024
TFIC	8,676	$ 118,460	$ 124,060

Under the Securities and Exchange Act, the Corporation shall neither pledge treasury shares nor exercise shareholders' rights on these shares, such as rights to dividends and to vote. The subsidiaries holding treasury shares, however, retain shareholders' rights, except the rights to participate in any share issuance for cash and to vote. On January 31, 2024, TFIC sold 433 thousand shares in the Corporation for $8,368 thousand.

37 -

22. NET (LOSS) PROFIT

a. Other income

	For the Year Ended December 31
	2025	2024
Government grants	$ 2,577	$ 47,469
Other	10,016	10,969
	$ 12,593	$ 58,438

b. Interest expense

	For the Year Ended December 31
	2025	2024
Interest on bank loans	$ 155,689	$ 143,751
Interest on lease liabilities	411	379
Other interest expense	40	37
	$ 156,140	$ 144,167

Information about capitalized interest was as follows:

	For the Year Ended December 31
	2025	2024
Capitalized interest	$ 11,099	$ 16,310
Capitalization rate	1.81%-2.01%	1.73%-2.14%

c. Depreciation and amortization

	For the Year Ended December 31
	2025	2024
Property, plant and equipment	$ 479,000	$ 560,954
Right-of-use assets	10,094	8,356
Intangible assets and other assets	5,189	7,346
	$ 494,283	$ 576,656
An analysis of depreciation by function
Operating costs	$ 440,709	$ 522,917
Operating expenses	48,385	46,393
	$ 489,094	$ 569,310
		(Continued)

38 -

	For the Year Ended December 31
	2025	2024
An analysis of amortization by function
Operating costs	$ 4,573	$ 5,531
Operating expenses	616	1,815
	$ 5,189	$ 7,346
		(Concluded)

d. Employee benefits expense

	For the Year Ended December 31
	2025	2024
Salary expense	$ 382,264	$ 386,528
Insurance expense	38,725	37,861
Post-employment benefits (Note 20)
Defined contribution plans	15,132	14,040
Defined benefit plans	9,710	9,716
Other employee benefits	65,284	66,453
Total employee benefits expense	$ 511,115	$ 514,598
An analysis of employee benefits expense by function
Operating costs	$ 292,822	$ 298,968
Operating expenses	218,293	215,630
	$ 511,115	$ 514,598

In compliance with the Articles, the Corporation accrued employees' compensation and remuneration of directors at the rates from 1% to 2% and no higher than 1%, respectively, of net profit before income tax, employees' compensation, and remuneration of directors. In accordance with the amendments to the Securities and Exchange Act in August 2024, the shareholders of the Corporation resolve the amendments to the Corporation's Articles at their 2025 regular meeting. The amendments explicitly stipulate that not less than 30% of the compensation of employees as compensation distributions for non-executive employees. However, if the Corporation has accumulated any deficit, the profit should be set aside for offsetting the losses.

Due to the net loss before income tax for the years ended December 31, 2025 and 2024, the Corporation did not accrue compensation of employees and remuneration of directors.

If there is a change in the amounts after the annual financial statements were authorized for issue, the differences are recorded as a change in the accounting estimate.

There is no difference between the actual amounts of compensation of employees and remuneration of directors paid and the amounts recognized in the financial statements for the years ended December 31, 2023.

Information on the employees' compensation and remuneration of directors resolved by the Corporation's board of directors is available on the Market Observation Post System website of the TWSE.

39 -

23. INCOME TAXES

a. Income tax recognized in profit or loss

Major components of income tax benefit are as follows:

	For the Year Ended December 31
	2025	2024
Current tax
In respect of the current year	$ -	$ 10,522
Adjustments for prior years	29,368	-
Deferred tax
In respect of the current year	(52,710)	(123,069)
Income tax benefit recognized in profit or loss	$ (23,342)	$ (112,547)

A reconciliation of accounting profit and income tax expense is as follows:

	For the Year Ended December 31
	2025	2024
Loss before tax	$ (910,627)	$ (92,558)
Income tax benefit calculated at the statutory rate	$ (182,125)	$ (18,512)
Nondeductible expenses in determining taxable income	120	160
Tax-exempt income	(6,623)	(15,883)
Unrecognized deductible temporary differences	135,918	(88,834)
Additional income tax under the Alternative Minimum Tax Act	-	10,522
Adjustments for prior years	29,368	-
Income tax benefit recognized in profit or loss	$ (23,342)	$ (112,547)

b. Income tax recognized in other comprehensive income

	For the Year Ended December 31
	2025	2024
Deferred tax
In respect of the current year
Remeasurement on defined benefit plans	$ 916	$ (131)

c. Current tax liabilities

	For the Year Ended December 31
	2025	2024
Income tax payable	$ -	$ 10,237

d. Deferred tax assets and liabilities

The movements of deferred tax assets and deferred tax liabilities were as follows:

For the year ended December 31, 2025

	Opening Balance	Recognized in Profit or Loss	Recognized in Other Comprehensive Income	Closing Balance
Deferred tax assets
Recognition of loss on foreign investments using equity method	$ 295,438	$ (56,668)	$ -	$ 238,770
Defined benefit obligation	31,030	(9,119)	916	22,827
Loss carryforwards	-	99,560	-	99,560
	$ 326,468	$ 33,773	$ 916	$ 361,157
Deferred tax liabilities
Land revaluation increment tax	$ 341,231	$ -	$ -	$ 341,231
Property, plant and equipment	300,279	(18,937)	-	281,342
Investment properties	12,309	-	-	12,309
Others	7,949	-	-	7,949
	$ 661,768	$ (18,937)	$ -	$ 642,831

For the year ended December 31, 2024

	Opening Balance	Recognized in Profit or Loss	Recognized in Other Comprehensive Income	Closing Balance
Deferred tax assets
Recognition of loss on foreign investments using equity method	$ 208,190	$ 87,248	$ -	$ 295,438
Defined benefit obligation	31,618	(457)	(131)	31,030
	$ 239,808	$ 86,791	$ (131)	$ 326,468
Deferred tax liabilities
Land revaluation increment tax	$ 341,231	$ -	$ -	$ 341,231
Property, plant and equipment	336,557	(36,278)	-	300,279
Investment properties	12,309	-	-	12,309
Others	7,949	-	-	7,949
	$ 698,046	$ (36,278)	$ -	$ 661,768

e. Income tax assessments

The income tax returns through 2023 have been assessed by the tax authorities. The Corporation disagreed with the tax authorities' assessment of their 2020, 2021 and 2022 tax return and the re-examination application is currently in progress.

24. (LOSS) EARNINGS PER SHARE

The net (loss) profit and weighted average number of ordinary shares outstanding in the computation of (loss) earnings per share were as follows:

Net (Loss) Profit for the Year

	For the Year Ended December 31
	2025	2024
Net (loss) profit used in the computation of basic/diluted (loss) earnings per share	$ (887,285)	$ 19,989

Weighted average number of ordinary shares outstanding (in thousand shares):

	For the Year Ended December 31
	2025	2024
Weighted average number of ordinary shares	885,703	885,703
Less: Reclassification of the Corporation’s shares held by subsidiaries	(8,676)	(8,688)
Weighted average number of ordinary shares used in the computation of basic (loss) earnings per share	877,027	877,015
Effect of potentially dilutive ordinary shares:
Employees’ compensation or bonuses issued to employees	-	49
Weighted average number of ordinary shares used in the computation of diluted (loss) earnings per share	877,027	877,064

If the Corporation offered to settle compensation or bonuses paid to employees in cash or shares, the Corporation assumed the entire amount of the compensation or bonuses will be settled in shares, and the resulting potential shares were included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.

25. CAPITAL MANAGEMENT

The Corporation manages its capital to ensure that entities in the Corporation will be able to continue as going concerns while maximizing the return to shareholders through the optimization of the debt and equity balance. The capital structure of the Corporation consists of bank loans and equity of the Corporation.

Financial management department of the Corporation reviews the capital structure on a monthly basis. As part of this review, the financial management department considers whether there were exceptions between the current ratio, the debt ratio and the target ratio set by the financial management department.

42 -

26. FINANCIAL INSTRUMENTS

a. Fair value of financial instruments that are not measured at fair value

Management believes the carrying amounts of non-financial assets and financial liabilities recognized in the financial statements approximate their fair values.

b. Fair value of financial instruments that are measured at fair value on a recurring basis

1) Fair value hierarchy

December 31, 2025

	Level 1	Level 2	Level 3	Total
Financial assets at FVTOCI
Investments in equity instruments at FVTOCI
Domestic listed shares	$ 381,187	$ -	$ -	$ 381,187
Domestic unlisted shares	-	-	2,302,134	2,302,134
	$ 381,187	$ -	$ 2,302,134	$ 2,683,321
December 31, 2024
	Level 1	Level 2	Level 3	Total
Financial assets at FVTOCI
Investments in equity instruments at FVTOCI
Domestic listed shares	$ 410,669	$ -	$ -	$ 410,669
Domestic unlisted shares	-	-	2,631,349	2,631,349
	$ 410,669	$ -	$ 2,631,349	$ 3,042,018

There were no transfers between Levels 1 and 2 in 2025 and 2024.

2) Reconciliation of Level 3 fair value measurements of financial instruments

Financial assets at FVTOCI

	For the Year Ended December 31
	2025	2024
Balance on January 1	$ 2,631,349	$ 3,284,281
Recognized in other comprehensive income	(321,025)	(652,932)
Reduction in capital	(8,190)	-
Balance on December 31	$ 2,302,134	$ 2,631,349

3) Valuation techniques and inputs applied for Level 3 fair value measurement

The significant and unobservable input parameter for domestic unlisted investments use market-based approach and asset approach mainly relates to liquidity discount rate. Market-based approach adopts the equity basis multiplier (P/B) of comparable listed companies, the fair price of the company's share is calculated after considering the liquidity discount parameter. Asset approach evaluates the total market value of individual asset and liability of the evaluated target, taking into account the risk factors such as liquidity discounts to estimate the fair value.

c. Categories of financial instruments

	December 31
	2025	2024
Financial assets
Financial assets at amortized cost (Note 1)	$ 1,109,982	$ 1,119,391
Financial assets at FVTOCI
Equity instruments	2,683,321	3,042,018
Financial liabilities
Amortized cost (Note 2)	9,872,761	9,283,649

Note 1: The balances include financial assets at amortized cost, which comprise cash and cash equivalents, notes receivable, trade receivables (including related parties), other receivables (including related parties) and debt investments.

Note 2: The balances include financial liabilities at amortized cost, which comprise short-term and long-term loans, trade payables (including related parties), other payables (including related parties) and guarantee deposits.

d. Financial risk management objectives and policies

The Corporation's major financial instruments included equity and debt investments, trade receivables, trade payables and borrowings. The Corporation's Corporate Treasury function provides services to the business, monitors and manages the financial risks relating to the operations of the Corporation through internal risk evaluation. These risks include market risk (including foreign currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

1) Market risk

The Corporation's activities exposed it primarily to the financial risks of changes in foreign currency exchange rates and interest rates.

a) Foreign currency risk

The Corporation had foreign currency sales and purchases, which exposed the Corporation to foreign currency risk. To protect against reductions foreign assets in value and the volatility of future cash flows caused by changes in foreign exchange rates, the Corporation managed the risk by balancing positions of assets and liabilities denominated in foreign currencies.

The carrying amounts of the Corporation's foreign currency denominated monetary assets and monetary liabilities and of the derivatives exposed to foreign currency risk at the end of the reporting period are set out in Note 30.

43 -

Sensitivity analysis

The Corporation was mainly exposed to the USD.

The following details the Group’s sensitivity to a 5% increase and decrease in the New Taiwan dollar against the relevant foreign currencies. The sensitivity rate used when reporting foreign currency risk internally to key management personnel and representing management’s assessment of the reasonably possible change in foreign exchange rates is 5%. For a 5% strengthening of the New Taiwan dollar against the relevant currency, the pre-tax loss would increase by $2,491 thousand and $3,792 thousand for the years ended December 31, 2025 and 2024, respectively. For a 5% weakening of the New Taiwan dollar against the relevant currency, there would be an equal and opposite impact on pre-tax loss, and the balances below would be negative.

b) Interest rate risk

The Corporation was exposed to interest rate risk because of borrowing funds at both fixed and floating interest rates. The risk is managed by the Corporation by maintaining an appropriate mix of fixed and floating rate borrowings, ensuring the most cost-effective hedging strategies are applied.

The carrying amount of the Corporation’s financial assets and financial liabilities with exposure to interest rates at the end of the reporting period were as follows:

	December 31
	2025	2024
Fair value interest rate risk
Financial assets	$ 78,762	$ 102,887
Financial liabilities	4,618,280	4,175,661
Cash flow interest rate risk
Financial assets	175,012	85,871
Financial liabilities	4,400,000	4,050,000

Sensitivity analysis

The sensitivity analyses below were determined based on the Corporation’s exposure to interest rates at the end of the reporting period. A 50 basis point increase or decrease was used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

If interest rates had been 50 basis points higher/lower and all other variables were held constant, the Corporation’s pre-tax loss for the years ended December 31, 2025 and 2024 would have increased/decreased by $21,125 thousand and $19,821 thousand, respectively, which was mainly attributable to the Corporation’s exposure to interest rates on its cash flow by variable-rate bank loans.

c) Other price risk

The Corporation was exposed to equity price risk through its investments in listed equity securities.

44 -

45 -

Sensitivity analysis

The sensitivity analyses below were determined based on the exposure to equity price risks at the end of the reporting period.

If equity prices had been 5% higher/lower, post-tax other comprehensive income (loss) for the years ended December 31, 2025 and 2024 would have increased/decreased by $19,059 thousand and $20,533 thousand, respectively, as a result of the changes in fair value of financial assets at FVTOCI.

2) Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Corporation. As at the end of the reporting period, the Corporation’s maximum exposure to credit risk which will cause a financial loss to the Corporation due to failure of counterparties to discharge an obligation and financial guarantees provided by the Corporation could arise from:

a) The carrying amount of the respective recognized financial assets as stated in the balance sheets; and

b) The amount of contingent liabilities in relation to financial guarantee issued by the Corporation.

The Corporation adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. The Corporation only transacts with entities that are rated good. The Corporation uses other publicly available financial information and its own trading records to rate its major customers. The Corporation’s exposure and the credit ratings of its counterparties are continuously monitored and the aggregate value of transactions concluded is spread amongst approved counterparties. Credit exposure is controlled by counterparty limits that are reviewed and approved by the credit organization.

Notes receivables and trade receivables consisted of a large number of unrelated customers. Ongoing credit evaluation is performed on the financial condition of notes receivables and trade receivables. Apart from Far Eastern New Century Corp., the largest customer, the Corporation did not have significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics. The ratios of notes receivables and trade receivables from the aforementioned customer were 26% and 22% as of December 31, 2025 and 2024, respectively.

Credit risk represents the potential impact to financial asset that the Corporation might encounter if counterparties or third parties breach the contracts. The Corporation evaluated credit risk exposure for contracts with positive carrying value. The Corporation evaluated the credit risk exposure as immaterial because all counterparties are reputable financial institutions and companies with credit ratings.

3) Liquidity risk

The Corporation manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Corporation’s operations and mitigate the effects of fluctuations in cash flows. In addition, management monitors the utilization of bank borrowings and ensures compliance with loan covenants.

The Corporation relies on bank borrowings as a significant source of liquidity. As of December 31, 2025 and 2024, the Corporation had available unutilized bank loan facilities set out in (b) below.

a) Liquidity and interest risk rate tables

The following table details the Corporation's remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables had been drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Corporation can be required to pay.

December 31, 2025

	On Demand or Less than 1 Month	1-3 Months	3 Months to 1 Year	1-5 Years	More than 5 Years
Non-interest bearing liabilities	$ -	$ 576,408	$ -	$ -	$ -
Lease liabilities	1,179	1,420	5,064	9,443	1,936
Variable interest rate liabilities	6,961	13,923	63,812	4,436,195	-
Fixed interest rate liabilities	7,281	314,562	60,549	4,347,116	-
	$ 15,421	$ 906,313	$ 129,425	$ 8,792,754	$ 1,936

December 31, 2024

	On Demand or Less than 1 Month	1-3 Months	3 Months to 1 Year	1-5 Years	More than 5 Years
Non-interest bearing liabilities	$ -	$ 737,563	$ -	$ -	$ -
Lease liabilities	985	1,645	7,404	16,183	173
Variable interest rate liabilities	-	-	-	4,164,789	-
Fixed interest rate liabilities	-	-	-	4,155,952	-
	$ 985	$ 739,208	$ 7,404	$ 8,336,924	$ 173

The amounts included above for variable interest rate instruments for both non-derivative financial assets and liabilities were subject to change if changes in variable interest rates differ from those estimates of interest rates determined at the end of the reporting period.

b) Financing facilities

	December 31
	2025	2024
Unsecured bank borrowing limit
Amount used	$ 7,487,071	$ 9,475,000
Amount unused	4,942,929	4,785,000
	$ 12,430,000	$ 14,260,000
		(Continued)

47 -

	December 31
	2025	2024
Secured bank borrowing limit
Amount used	$ 2,200,000	$ 2,200,000
Amount unused	-	-
	$ 2,200,000	$ 2,200,000
		(Concluded)

27. TRANSACTIONS WITH RELATED PARTIES

The prices and payment terms of these transactions were similar to those for third parties. Details of transactions between the Corporation and other related parties are disclosed below.

Related Party Name	Related Party Category
Far Eastern New Century Corp.	Investors with significant influence over the Corporation
Ton Fu Investment Corp. (TFIC)	Subsidiaries
Far Eastern Union Petrochemical (Yangzhou) Ltd. (FUPY)	Subsidiaries
Asia Cement Corp.	Others
Oriental Petrochemical (Taiwan) Co., Ltd. (OPTC)	Others
Air Liquide Far Eastern Ltd.	Others
Oriental Green Materials Ltd.	Others
Ya Tung Ready Mixed Concrete Co., Ltd.	Others
Everest Textile Co., Ltd.	Others
Far Eastern Polytex (Vietnam) Ltd.	Others
Asia Cement (Singapore) Pte. Ltd.	Others
Fu-Ming Transport Corp.	Others
Fu-Da Transport Corp.	Others
Far Eastern International Bank (FEIB)	Others

b. Sale of goods

	For the Year Ended December 31
	2025	2024
Investors with significant influence over the Corporation	$ 1,338,308	$ 1,000,491
Others	60,262	58,555
	$ 1,398,570	$ 1,059,046

c. Purchase of goods

	For the Year Ended December 31
	2025	2024
Subsidiaries	$ 3,926	$ 1,287
Others	-	1,500
	$ 3,926	$ 2,787

d. Operating expenses

	For the Year Ended December 31
	2025	2024
Others
Fu-Ming Transport Corp.	$ 177,085	$ 165,335
Others	9,552	10,709
	$ 186,637	$ 176,044

e. Other income

	For the Year Ended December 31
	2025	2024
Subsidiaries	$ 433	$ 1,037

f. Cash and cash equivalents

	December 31
	2025	2024
Others
FEIB	$ 54,607	$ 11,619

g. Receivables from related parties

	December 31
	2025	2024
Investors with significant influence over the Corporation Far Eastern New Century Corp.	$ 158,245	$ 166,174
Others	7,946	8,231
	$ 166,191	$ 174,405

The outstanding trade receivables from related parties are unsecured. For the years ended December 31, 2025 and 2024, no impairment loss was recognized for trade receivables from related parties.

h. Financial assets at amortized cost - non-current

	December 31
	2025	2024
Others
FEIB	$ 78,762	$ 102,887

i. Other payables

	December 31
	2025	2024
Others	$ 36,564	$ 37,032

j. Remuneration of key management personnel

	For the Year Ended December 31
	2025	2024
Short-term employee benefits	$ 28,491	$ 29,038
Post-employment benefits	216	216
	$ 28,707	$ 29,254

The remuneration of directors and key executives was determined by the remuneration committee based on the performance of individuals and market trends.

28. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The following assets had been pledged by bank, as collateral for borrowings and guarantees for Suppliers and Customers:

	December 31
	2025	2024
Pledged deposits (financial assets at amortized cost - non-current)	$ 78,762	$ 102,887
Investment properties	1,682,742	1,682,742
	$ 1,761,504	$ 1,785,629

As of December 31, 2025, the Corporation pledged 28,599 thousand shares of the subsidiary TFIC as security.

29. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

In addition to those disclosed in other notes, significant commitments and contingencies of the Corporation as of December 31, 2025 were as follows:

a. As of December 31, 2025, unused letters of credit for purchases of raw materials amounted to $221,098 thousand, purchase guarantees from banking institution and performance guarantees for grants from Taipei Computer Association amounted to $300,212 thousand, and leased silver for catalysts from financial institution amounted to $165,761 thousand.

b. The Corporation has a three-year agreement beginning from 2004, to sell ethylene glycols to major customers, namely, Far Eastern New Century Corporation, Tainan Spinning Co., Ltd., and Shinkong Synthetic Fibers Corporation. The agreement is automatically renewed for successive periods of three years unless otherwise terminated by either party with prior notice. The determined price under the agreement is in U.S. dollars.

c. The Corporation’s board of directors resolved to construct ethylene storage tanks at the Kaohsiung Intercontinental Container Terminal in 2019. The total contract amount was $765,893 thousand. Subsequently, due to a change in the allocation method for public utility equipment, the total project cost was revised to $725,188 thousand on November 15, 2024. As of December 31, 2025, the Corporation had paid $651,879 thousand, which is accounted for as construction in progress and equipment to be inspected.

30. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The Corporation’s significant financial assets and liabilities denominated in foreign currencies aggregated by the foreign currencies other than functional currencies and the related exchange rates between foreign currencies and respective functional currencies were as follows:

December 31, 2025

	Foreign Currencies	Exchange Rate	Carrying Amount
Financial assets
Monetary items
USD	$ 4,654	31.43 (USD:NTD)	$ 146,275
Non-monetary items
Investments accounted for using the equity method
RMB	759,374	4.47 (RMB:NTD)	$ 3,395,615
Financial liabilities
Monetary items
USD	3,069	31.43 (USD:NTD)	$ 96,459
December 31, 2024
	Foreign Currencies	Exchange Rate	Carrying Amount
Financial assets
Monetary items
USD	$ 2,476	32.79 (USD:NTD)	$ 81,176
Non-monetary items
Investments accounted for using the equity method
RMB	870,706	4.56 (RMB:NTD)	$ 3,971,132
Financial liabilities
Monetary items
USD	163	32.79 (USD:NTD)	$ 5,344

51 -

31. SEPARATELY DISCLOSED ITEMS

a. Information on significant transactions:

1) Financing provided to others. (Table 1)
2) Endorsements/guarantees provided. (Table 2)
3) Significant marketable securities held. (Table 3)
4) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital. (Table 4)
5) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital. (Table 5)

b. Information on investees. (Table 6)

c. Information on investments in mainland China

1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the year, repatriations of investment income, and limit on the amount of investment in the mainland China area. (Table 7)
2) Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses. (None)

32. SEGMENT INFORMATION

Information reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance focuses on the types of goods or services delivered or provided. Specifically, the Corporation’s reportable segments under IFRS 8 “Operating Segments” were as follows:

Ethylene glycols business
Special chemicals business
Gas business
Investment and others

The revenue and operation results and departmental assets have been disclosed in the consolidated financial statements by the reportable segments, please refer to the consolidated financial statements for details.

TABLE 1

ORIENTAL UNION CHEMICAL CORPORATION

FINANCINGS PROVIDED TO OTHERS

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

No.	Lender	Borrower	Financial Statement Account	Related Parties	Highest Balance for the Period	Ending Balance	Actual Borrowing Amount	Interest Rate	Nature of Financing	Business Transaction Amounts	Reasons for Short-term Financing	Allowance for Impairment Loss	Collateral		Financing Limit for Each Borrower (Note)	Aggregate Financing Amount Limits (Note)	Note
													Item	Value
1	FUPY	HXYZ	Other receivables - related parties loans	Yes	$ 568,788	$ 568,788	$ 568,788	1.3%	Necessary for short-term financing	$ -	Operating capital	$ -	Promissory notes	$ -	40% of net worth of FUPY $2,038,835	40% of net worth of FUPY $2,038,835	-

Note: Based on audited financial statements as of December 31, 2025.

TABLE 2

ORIENTAL UNION CHEMICAL CORPORATION

ENDORSEMENTS/GUARANTEES PROVIDED

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

No.	Endorser/Guarantor	Endorsee/Guaranteed		Limits on Endorsement/ Guarantee Given on Behalf of Each Party	Maximum Amount Endorsed/ Guaranteed During the Period	Outstanding Endorsement/ Guarantee at the End of the Period	Actual Borrowing Amount	Amount Endorsed/ Guaranteed by Collaterals	Ratio of Accumulated Endorsement/ Guarantee to Net Equity in Latest Financial Statements (%)	Aggregate Endorsement/ Guarantee Limit	Endorsement/ Guarantee Given by Parent on Behalf of Subsidiaries	Endorsement/ Guarantee Given by Subsidiaries on Behalf of Parent	Endorsement/ Guarantee Given on Behalf of Companies in Mainland China	Note
		Name	Relationship (Note)
0	The Corporation	TFIC	2	50% of net worth of the Corporation $4,603,355	$ 1,300,000	$ 1,200,000	$ 80,000	$ -	13.03	100% of net worth of the Corporation $9,206,709	Y	N	N

Note: The relationships between the endorser/guarantor and the endorsee/guaranteed are listed below:
2. Represents the entity whose voting shares are exceed fifty percent (50%) owned directly or indirectly by the Corporation.

53 -

TABLE 3

ORIENTAL UNION CHEMICAL CORPORATION

SIGNIFICANT MARKETABLE SECURITIES HELD

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account	December 31, 2025				Note
				Number of Shares/Units	Carrying Amount	Percentage of Ownership (%)	Fair Value
The Corporation	Far Eastern Department Stores Ltd.	Same chairman	Financial assets at FVTOCI - non-current	5,500,000	$ 121,000	-	$ 121,000	Note 1
	Asia Cement Corp.	Same chairman	Same as above	4,243,315	157,851	-	157,851	Note 1
	Everest Textile Co., Ltd.	The chairman of Everest Textile Co., Ltd. is a director of the Corporation	Same as above	16,040,145	102,336	2	102,336	Note 1
	Oriental Petrochemical (Taiwan) Co., Ltd.	The Corporation is one of its director	Same as above	220,680,214	1,930,952	8	1,930,952	Note 2
	Grand Cathay Venture Capital Co., Ltd.	The Corporation is one of its director	Same as above	26,666,667	345,867	17	345,867	Note 2
TFIC	The Corporation	Treasury share	Same as above	8,675,554	118,460	1	108,011	Note 1
	Everest Textile Co., Ltd.	The chairman of Everest Textile Co., Ltd. is the Corporation's parent corporation's director	Same as above	14,580,194	93,022	2	93,022	Note 1
	Yue Ding Enterprise Corp.	Related party in substance	Same as above	6,260,174	84,449	5	84,449	Note 2
	Ding Shen Investment Co., Ltd.	Related party in substance	Same as above	40,328,640	402,480	18	402,480	Note 2
	Oriental Petrochemical (Taiwan) Co., Ltd.	The Corporation is one of its director	Same as above	70,455,656	616,487	3	616,487	Note 2
PPL	Far Eastern Industries (Shanghai), Ltd.	Related party in substance	Same as above	-	393,310	10	393,310	Note 2

Note 1: The market value was calculated at closing price on December 31, 2025.
Note 2: The net asset value was calculated based on the latest assessments.
Note 3: This table discloses the marketable securities that the Corporation has determined should be presented in accordance with the principle of materiality.

TABLE 4

ORIENTAL UNION CHEMICAL CORPORATION

TOTAL PURCHASE FROM OR SALE TO RELATED PARTIES OF AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Company Name	Related Party	Relationship	Transaction Details				Abnormal Transaction		Notes/Accounts Receivable (Payable)		Note
			Purchase/Sale	Amount	% to Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% to Total
The Corporation	Far Eastern New Century Corp.	Same chairman	Sale	$ (1,338,308)	(6)	Same as those to unrelated parties	-	-	$ 158,245	15	-

TABLE 5

ORIENTAL UNION CHEMICAL CORPORATION

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Company Name	Related Party	Relationship	Ending Balance	Turnover Rate	Overdue		Amount Received in Subsequent Period	Allowance for Impairment Loss
					Amount	Actions Taken
The Corporation	Far Eastern New Century Corp.	Same chairman	Trade receivables $ 158,245	8.25	$ -	-	$ 158,245	$ -
FUPY	HXYZ	Investee by using equity method	Other receivables 569,647	-	-	-	-	-

56 -

TABLE 6

ORIENTAL UNION CHEMICAL CORPORATION

INFORMATION ON INVESTEES

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars or Foreign Currency)

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount		As of December 31, 2025			Net Income (Loss) of the Investee	Share of Profits (Loss)	Note
				December 31, 2025	December 31, 2024	Shares	%	Carrying Amount
The Corporation	PPL	British Virgin Islands	Investment	US$ 216,452	US$ 216,452	149,000	100	$ 2,850,958	$ (276,368)	$ (276,368)	Note
	TFIC	Taipei City, ROC	Enterprise and financial institution investments	1,110,000	1,110,000	178,394,482	100	1,185,634	(2,048)	(2,048)
	OUCC (Bermuda)	British Bermuda Islands	Investment	US$ 90,000	US$ 90,000	103,580	100	544,657	(54,183)	(54,183)

Note: The ending balance includes 28,599,328 shares pledged to financial institutions.

57 -

TABLE 7

ORIENTAL UNION CHEMICAL CORPORATION

INFORMATION OF INVESTMENTS IN MAINLAND CHINA

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars or Foreign Currency)

Investee Company	Main Businesses and Products	Paid-in Capital	Method of Investment	Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2025	Investment Flows		Accumulated Outward Remittance for Investment from Taiwan as of December 31, 2025	Net Income (Loss) of the Investee	% Ownership of Direct or Indirect Investment	Investment Gain (Loss)	Carrying Amount as of December 31, 2025	Accumulated Repatriation of Investment Income as of December 31, 2025	Note
					Outflow	Inflow
FUPY	Manufacturing and selling chemical products (ethylene glycol, diethylene glycol, triethylene glycol and ethylene oxide) and other specific chemical products.	US$ 357,500	Indirect	US$ 202,980	-	-	US$ 202,980	RMB (128,837)	56	$(313,768) (Note 2)	$ 2,844,175	$ -	Note 3
HXYZ	The production and sales of hot water (non-potable water) and steam; the erection and maintenance of heat-supply pipelines; the consultancy service in heat-supply technologies.	RMB 160,000	Indirect	-	-	-	-	RMB (21,800)	28	(47,477) (Note 2)	45,333	-
Accumulated Outward Remittance for Investment in Mainland China as of December 31, 2025	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on the Amount of Investment Stipulated by Investment Commission, MOEA
---	---	---
US$295,866	US$315,116	(Note 1)

Note 1: The Corporation obtained certificate No. 11351002620 from Industrial Development Administration, Ministry of Economic Affairs according to the "Regulations Governing the Approval of Investment or Technical Cooperation in Mainland China", the accumulation of fund is not limited.
Note 2: Based on audited financial statements.
Note 3: Significant non-controlling interests.

ORIENTAL UNION CHEMICAL CORPORATION

THE CONTENTS OF STATEMENTS OF MAJOR ACCOUNTING ITEMS

Item	Statement Index
Major Accounting Items in Assets, Liabilities and Equity
Statement of cash and cash equivalents	1
Statement of notes and trade accounts receivable	2
Statement of inventories	Note 10
Statement of changes in investments accounted for using equity method	3
Statement of changes in property, plant and equipment	Note 12
Statement of changes in accumulated depreciation of property, plant and equipment	Note 12
Statement of deferred income tax assets	Note 23
Statement of changes in financial assets at fair value through other comprehensive income - non-current	4
Statement of right-of-use assets	Note 13
Statement of short-term borrowings	Note 16
Statement of trade payables	5
Statement of other payables	Note 17
Statement of long-term borrowings	6
Statement of deferred income tax liabilities	Note 23
Major Accounting Items in Profit or Loss
Statement of operating revenues	7
Statement of operating costs	8
Statement of operating expenses	9
Statement of interest expenses	Note 22
Statement of employee benefit, depreciation and amortization by function	Notes 22, 10

59 -

STATEMENT 1

ORIENTAL UNION CHEMICAL CORPORATION

STATEMENT OF CASH AND CASH EQUIVALENTS

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Name	Amount
Bank balance
Demand deposits (Note)	$ 175,012
Checking accounts	240,085
Petty cash	100
	$ 415,197

Note: Including demand deposits of US$3,412 thousand and the exchange rate was US$1=NT$31.43.

60 -

STATEMENT 2

ORIENTAL UNION CHEMICAL CORPORATION

STATEMENT OF NOTES AND TRADE ACCOUNTS RECEIVABLE

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Client Name	Notes Receivable	Trade Receivables	Total
Related parties
Far Eastern New Century Corp.	$ -	$ 158,245	$ 158,245
Others (Note)	-	7,946	7,946
	-	166,191	166,191
Unrelated parties
Tainan Spinning Co., Ltd.	-	62,015	62,015
Sino-Japan Chemical Co., Ltd.	54,443	3,838	58,281
CPC Corporation, Taiwan	-	42,806	42,806
Hung Chou Fiber Industrial Co., Ltd.	-	29,676	29,676
Others (Note)	2,311	255,755	258,066
	56,754	394,090	450,844
Less: Allowance for impairment loss	335	3,350	3,685
	$ 56,419	$ 556,931	$ 613,350

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

61 -

STATEMENT 3

ORIENTAL UNION CHEMICAL CORPORATION

STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

	Beginning Balance		Increase		Decrease		Adjustments on Equity Method Amount (Note 1)	Ending Balance
	Thousands Shares	Amount	Thousands Shares	Amount	Thousands Shares	Amount		Thousands Shares	Percentage of Ownership (%)	Amount	Net Assets Value
PPL	149	$ 3,358,987	-	$ -	-	$ -	$ (508,029)	149	100	$ 2,850,958	$ 2,850,958
TFIC	162,914	1,290,880	15,480	-	-	-	(105,246)	178,394	100	1,185,634	(Note 2)
OUCC (Bermuda)	104	612,145	-	-	-	-	(67,488)	104	100	544,657	544,657
		$ 5,262,012		$ -		$ -	$ (680,763)			$ 4,581,249

Note 1: Adjustments on equity method amount include:
a) Share of loss of subsidiaries accounted for using equity method $ (332,599)
b) Exchange differences on translating the financial statements of foreign operations (89,608)
c) Changes in the Corporation's share of the equity of associates and subsidiaries (258,556)

Note 2: The ending balance includes 28,599 thousand shares pledged to financial institutions.

STATEMENT 4

ORIENTAL UNION CHEMICAL CORPORATION

STATEMENT OF CHANGES IN FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME - NON-CURRENT

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Financial Instruments Name	Balance, January 1, 2025		Additions in Investment		Decrease in Investment		Adjustments on Financial Instruments	Balance, December 31, 2025		Accumulated Impairment	Provide a Guarantee or Pledge
	Shares (In Thousands)	Fair Value	Shares	Amount	Shares	Amount		Shares (In Thousands)	Fair Value
Asia Cement Corp.	4,243	$ 171,430	-	$ -	-	$ -	$(13,579)	4,243	$ 157,851	NA	None
Far Eastern Department Stores Ltd.	5,500	123,750	-	-	-	-	(2,750)	5,500	121,000	NA	None
Everest Textile Co., Ltd.	16,041	115,489	-	-	-	-	(13,153)	16,041	102,336	NA	None
Oriental Petrochemical (Taiwan) Co., Ltd.	350,286	2,210,305	-	-	129,606	-	(279,353)	220,680	1,930,952	NA	None
Grand Cathay Venture Capital Co., Ltd.	26,667	392,267	-	-	-	-	(46,400)	26,667	345,867	NA	None
Eminent Venture Capital Corp.	675	8,113	-	-	-	-	(820)	675	7,293	NA	None
Eminent II Venture Capital Corp.	2,340	13,891	-	-	819	8,190	5,706	1,521	11,407	NA	None
Tai An Technologies Corp.	500	6,773	-	-	-	-	(158)	500	6,615	NA	None
		$ 3,042,018		$ -		$ 8,190	$(350,507)		$ 2,683,321

STATEMENT 5

ORIENTAL UNION CHEMICAL CORPORATION

STATEMENT OF TRADE PAYABLES

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Vendor Name	Amount
CPC Corp., Taiwan	$ 253,918
Taiwan Power Company	121,692
MITSUI & CO. LTD	83,380
Others (Note)	117,418
	$ 576,408

Note: Each of the suppliers was less than 5% of the total account balance.

64 -

STATEMENT 6

ORIENTAL UNION CHEMICAL CORPORATION

STATEMENT OF LONG-TERM BORROWINGS

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Lender	Repayment Terms (Note 1)	Interest rate	Amount	Collateral
Mega Bank	2025.12.15-2027.12.09, principal due upon maturity, interest payable monthly.	Note 2	$ 700,000
Bank of China	2025.11.14-2027.11.18, principal due upon maturity, interest payable monthly.	Note 2	450,000
Shanghai Commercial and Savings Bank	2025.11.13-2027.04.18, principal due upon maturity, interest payable monthly.	Note 2	600,000
The Export-Import Bank of ROC	2025.05.15-2028.05.15, principal due upon maturity, interest payable monthly.	Note 2	500,000
Bank Sinopac	2025.12.29-2027.04.30, principal due upon maturity, interest payable monthly.	Note 2	300,000
Hua Nan Commercial Bank	2025.05.15-2027.05.15, principal due upon maturity, interest payable monthly.	Note 2	1,000,000
Yuanta Commercial Bank	2025.10.15-2028.02.09, principal due upon maturity, interest payable monthly.	Note 2	600,000
Taiwan Cooperative Bank	2025.03.31-2027.03.31, principal due upon maturity, interest payable monthly.	Note 2	700,000
Land Bank of Taiwan	2025.12.15-2027.11.05, principal due upon maturity, interest payable monthly.	Note 2	1,200,000
Chang Hwa Bank	2025.04.15-2027.04.15, principal due upon maturity, interest payable monthly.	Note 2	2,200,000	Land as collateral
	2025.12.29-2027.03.31, principal due upon maturity, interest payable monthly.	Note 2	450,000
			$ 8,700,000

Note 1: The maturity date refers to the repayment date or the contracted date.
Note 2: Interest rate for long-term borrowings range from 1.90%-2.03%.

STATEMENT 7

ORIENTAL UNION CHEMICAL CORPORATION

STATEMENT OF OPERATING REVENUES

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Item	Quantity (Ton)	Amount
Special chemicals products	139,665	$ 4,859,004
Ethylene oxide and ethylene glycol products	226,873	4,086,591
Gas products	315,541	1,253,558
		$ 10,199,153

66 -

STATEMENT 8

ORIENTAL UNION CHEMICAL CORPORATION

STATEMENT OF OPERATING COSTS FOR THE YEAR ENDED DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Item	Amount
Raw materials, beginning of year	$ 85,710
Add: Raw material purchased	8,339,993
Catalysts roll-in	95,085
Less: Raw materials, end of year	63,547
Others	8,707
Direct raw material used	8,448,534
Direct labor	67,868
Manufacturing expenses	1,106,946
Manufacturing cost	9,623,348
Work in process, beginning of year	25,319
Add: Work in process purchased	227
Less: Work in process, end of year	34,059
Cost of finished goods	9,614,835
Finished goods, beginning of year	598,393
Add: Finished goods purchased	180,421
Less: Finished goods, end of year	576,115
Others	19,325
Operating costs	$ 9,798,209

67 -

STATEMENT 9

ORIENTAL UNION CHEMICAL CORPORATION

STATEMENT OF OPERATING EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

	Selling and Marketing Expenses	General and Administrative Expenses	Research and Development Expenses	Expected Credit Loss	Total
Salaries	$ 34,353	$ 59,994	$ 82,367	$ -	$ 176,714
Freight	233,744	-	-	-	233,744
Export sales expenses	203,844	-	-	-	203,844
Depreciation expenses	15,539	1,106	31,740	-	48,385
Others (Note)	79,496	52,738	89,994	(945)	221,283
	$ 566,976	$ 113,838	$ 204,101	$ (945)	$ 883,970

Note: Total amount of each item in others does not exceed 5% of the account balance.

68 -

STATEMENT 10

ORIENTAL UNION CHEMICAL CORPORATION

STATEMENT OF EMPLOYEE BENEFIT, DEPRECIATION AND AMORTIZATION BY FUNCTION

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	2025			2024
	Classified as Operating Costs	Classified as Operating Expenses	Total	Classified as Operating Costs	Classified as Operating Expenses	Total
Labor cost
Salary expenses	$ 205,550	$ 173,954	$ 379,504	$ 211,306	$ 170,988	$ 382,294
Insurance expenses	24,209	14,516	38,725	23,633	14,228	37,861
Pension	14,356	10,486	24,842	13,602	10,154	23,756
Board compensation	-	2,760	2,760	-	4,234	4,234
Others	48,707	16,577	65,284	50,427	16,026	66,453
	$ 292,822	$ 218,293	$ 511,115	$ 298,968	$ 215,630	$ 514,598
Depreciation expenses	$ 440,709	$ 48,385	$ 489,094	$ 522,917	$ 46,393	$ 569,310
Amortization expenses	$ 4,573	$ 616	$ 5,189	$ 5,531	$ 1,815	$ 7,346

Note 1: For the years ended December 31, 2025 and 2024, the average numbers of the Corporation's employees were 381 and 391, respectively, and the numbers of directors who were not employees were both 8.
Note 2: For the years ended December 31, 2025 and 2024, the average labor cost were $1,363 thousand and $1,333 thousand.
Note 3: For the years ended December 31, 2025 and 2024, the average salary expenses were $1,017 thousand and $998 thousand (excluding capitalized salaries).
Note 4: Average Adjustment of salary expenses were 2%.
Note 5: Pursuant to the Corporation Law and the Article 33 of Articles of Incorporation, $1\%$ to $2\%$ of profit of the current year should be distributed as employees' compensation and not more than $1\%$ of profit of the current year should be distributed as directors' remuneration in the case where there are profits for the current year. In accordance with the amendments to the Securities and Exchange Act in August 2024, the shareholders of the Corporation resolve the amendments to the Corporation's Articles at their 2025 regular meeting. The amendments explicitly stipulate that not less than $30\%$ of the compensation of employees as compensation distributions for non-executive employees. However, the Corporation's accumulated losses shall have been covered. The Corporation may, by a resolution adopted by the board of directors with consent of over half of the least two third of total Directors attendant, determine the actual ratio, amount, form (in the form of shares or in cash) and the number of shares distributable as employees' compensation; and in addition thereto a report of such distribution shall be submitted to the shareholders' meeting. The remuneration paid to independent directors is a fixed amount. The actual ratio and amount of the profit distributable as directors' remuneration shall also be determined by the board of directors in accordance with the "Board Performance Evaluation Rule", and a report of such distribution shall be submitted to the shareholders' meeting. The remuneration of directors, presidents, executive vice presidents, and managers was paid according to not only the peer standards but also the correlations with the personnel assessment, operational performance, and future risks. The remaining compensation is determined based on the business results of the whole Corporation and each department; meanwhile, results of market survey on the general salary level of TWSE-listed companies and reports by professional consulting companies will also be used as references. In addition, the remuneration committee of the Corporation regularly (at least once a year) reviews and evaluates the remuneration policies, systems, standards and structures of directors and managers, and presents its recommendations to the board of directors for discussion in order to balance the Corporation's sustainability and risk control.

The salary of employees includes monthly salary and remuneration paid by the Corporation based on annual profitability. The Corporation determines the total amount of performance bonuses and remunerations based on the Corporation's operating results and with reference to the level of domestic industry distribution. The amount each employee receives depends on their position, contribution, and performance.

AI assistant

OUCC — Audit Report / Information 2025

51893_rns_2026-04-28_234b8923-3873-4478-8665-fd0599666e0e.pdf

Oriental Union Chemical Corporation

INDEPENDENT AUDITORS' REPORT

Opinion

Basis for Opinion

Key Audit Matters

The Impairment Loss of Property, Plant and Equipment

Corresponding audit procedures:

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

Auditors' Responsibilities for the Audit of the Financial Statements

Notice to Readers

ORIENTAL UNION CHEMICAL CORPORATION

STATEMENTS OF COMPREHENSIVE INCOME

ORIENTAL UNION CHEMICAL CORPORATION

STATEMENTS OF COMPREHENSIVE INCOME

ORIENTAL UNION CHEMICAL CORPORATION

ORIENTAL UNION CHEMICAL CORPORATION

STATEMENTS OF CASH FLOWS

ORIENTAL UNION CHEMICAL CORPORATION

STATEMENTS OF CASH FLOWS

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

6. CASH AND CASH EQUIVALENTS

7. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

8. FINANCIAL ASSETS AT AMORTIZED COST

9. NOTES RECEIVABLE AND TRADE RECEIVABLES

10. INVENTORIES

11. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

12. PROPERTY, PLANT AND EQUIPMENT AND CONSTRUCTION IN PROGRESS

13. LEASE ARRANGEMENTS

14. INVESTMENT PROPERTIES

15. OTHER ASSETS

16. BORROWINGS

17. OTHER PAYABLES

18. OTHER LIABILITIES

19. PROVISIONS

20. RETIREMENT BENEFIT PLANS

21. EQUITY

22. NET (LOSS) PROFIT

23. INCOME TAXES

24. (LOSS) EARNINGS PER SHARE

25. CAPITAL MANAGEMENT

26. FINANCIAL INSTRUMENTS

Sensitivity analysis

2) Credit risk

3) Liquidity risk

27. TRANSACTIONS WITH RELATED PARTIES

28. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

29. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

30. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

31. SEPARATELY DISCLOSED ITEMS

32. SEGMENT INFORMATION

ORIENTAL UNION CHEMICAL CORPORATION

ORIENTAL UNION CHEMICAL CORPORATION

ORIENTAL UNION CHEMICAL CORPORATION

ORIENTAL UNION CHEMICAL CORPORATION

ORIENTAL UNION CHEMICAL CORPORATION

ORIENTAL UNION CHEMICAL CORPORATION

ORIENTAL UNION CHEMICAL CORPORATION

ORIENTAL UNION CHEMICAL CORPORATION

STATEMENT OF CASH AND CASH EQUIVALENTS

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Specified Otherwise)

ORIENTAL UNION CHEMICAL CORPORATION

STATEMENT OF NOTES AND TRADE ACCOUNTS RECEIVABLE

DECEMBER 31, 2025

ORIENTAL UNION CHEMICAL CORPORATION

STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD

FOR THE YEAR ENDED DECEMBER 31, 2025

ORIENTAL UNION CHEMICAL CORPORATION

STATEMENT OF CHANGES IN FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME - NON-CURRENT

FOR THE YEAR ENDED DECEMBER 31, 2025

ORIENTAL UNION CHEMICAL CORPORATION

ORIENTAL UNION CHEMICAL CORPORATION

ORIENTAL UNION CHEMICAL CORPORATION

STATEMENT OF OPERATING REVENUES

OUCC Audit Report / Information 2025