Pou Chen Corporation and Subsidiaries

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

DECLARATION OF CONSOLIDATION OF FINANCIAL STATEMENTS OF AFFILIATES

The companies required to be included in the consolidated financial statements of affiliates in accordance with the "Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises" for the year ended December 31, 2025 are all the same as the companies required to be included in the consolidated financial statements of parent and subsidiary companies as provided in International Financial Reporting Standard 10 "Consolidated Financial Statements". Relevant information that should be disclosed in the consolidated financial statements of affiliates has all been disclosed in the consolidated financial statements of parent and subsidiary companies. Hence, we do not prepare a separate set of consolidated financial statements of affiliates.

Very truly yours,

POU CHEN CORPORATION

March 12, 2026

Deloitte.

勤業眾信

勤業眾信聯合會針師事務所

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 Shareholders

Pou Chen Corporation

Opinion

We have audited the accompanying consolidated financial statements of Pou Chen Corporation (the "Company") and its subsidiaries (collectively referred to as the "Group"), which comprise the consolidated balance sheets as of December 31, 2025 and 2024, and the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and the notes to the consolidated financial statements, including material accounting policy information (collectively referred to as the "consolidated financial statements").

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

Basis for Opinion

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

Key Audit Matters

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

The key audit matters identified in the Group’s consolidated financial statements for the year ended December 31, 2025 are stated as follows:

Write-downs of Inventory

As of December 31, 2025, the carrying amount of finished goods related to the retail segment included in the inventories was $22,626,111 thousand. For the related disclosures, refer to Notes 4, 5 and 11 to the consolidated financial statements.

The determination of net realizable value requires an evaluation of sales condition and quality of products and an assessment of obsolete and slow-moving inventories; the evaluation involves significant judgments and estimations made by management. Therefore, we considered the write-downs of inventory as a key audit matter to the consolidated financial statements for the year ended December 31, 2025.

We obtained the inventory valuation sheets prepared by management, selected samples of estimated selling prices and traced them to the recent sales records to assess the rationale of the net realizable value determined by management. In addition, we selected samples from the inventory aging report prepared by management to verify the correctness of its classification and the reasonableness of the amount of inventory write-downs.

Impairment of Goodwill

As of December 31, 2025, goodwill allocated to the retailing business-retail and distribution of sportswear products of the Group amounted to $2,392,483 thousand. For the related disclosures, refer to Notes 4, 5 and 18 to the consolidated financial statements.

Management evaluated the impairment of the abovementioned assets based on their recoverable amounts. The recoverable amounts are determined according to the forecast of the trading performance, future cash flows and the discount rate. The test of impairment involved significant judgments and estimations made by management. As a result, we considered the impairment of goodwill a key audit matter to the consolidated financial statements for the year ended December 31, 2025.

Our audit procedures in response to this key audit matter included evaluation of the reasonableness of the significant assumptions, evaluation model, and basic information and recalculation used by management for impairment testing.

Other Matter

The Group’s investments in Ruen Chen Investment Holding Co., Ltd. and Nan Shan Life Insurance Co., Ltd. were accounted for by using the equity method based on its financial statements which were audited by other auditors. Our opinion, insofar as it relates to the Group’s investments in Ruen Chen Investment Holding Co., Ltd. and Nan Shan Life Insurance Co., Ltd., is based solely on the reports of other auditors.

As of December 31, 2025 and 2024, the carrying amounts of investments in Ruen Chen Investment Holding Co., Ltd. and Nan Shan Life Insurance Co., Ltd were $51,956,454 thousand and $51,250,261 thousand, respectively, representing 14.61% and 14.58%, respectively. For the years ended December 31, 2025 and 2024, the amounts of profit of the associates were $4,971,440 thousand and $7,637,107 thousand, respectively, representing 22.53% and 25.69% of the income which the Group recognized before income tax.

We have also audited the parent company only financial statements of Pou Chen Corporation as of and for the years ended December 31, 2025 and 2024 on which we have issued an unmodified opinion with emphasis of other matter paragraph.

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

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

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

Those charged with governance, including the audit committee, are responsible for overseeing the Group’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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 Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

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

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Group to cease to continue as a going concern.
4 -

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

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements for the year ended December 31, 2025 and are therefore the key audit matters. We 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 Ker-Chang Wu and Wen-Yea Shyu.

Deloitte & Touche
Taipei, Taiwan
Republic of China
March 12, 2026

Notice to Readers

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

For the convenience of readers, the independent auditors' report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. 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 consolidated financial statements shall prevail.

POU CHEN CORPORATION AND SUBSIDIARIES

CONSOLIDATED 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 4 and 6)	$ 27,293,976	8	$ 29,926,773	9
Financial assets at fair value through profit or loss - current (Notes 4 and 7)	2,353,282	1	1,594,584	-
Financial assets at fair value through other comprehensive income - current (Notes 4 and 8)	24,333,157	7	23,600,478	7
Financial assets at amortized cost - current (Notes 4 and 9)	6,855,031	2	9,996,487	3
Notes receivable (Notes 4 and 10)	6	-	440	-
Accounts receivable (Notes 4, 10 and 32)	28,874,870	8	30,801,572	9
Other receivables (Notes 4, 10 and 27)	11,399,649	3	8,833,620	3
Current tax assets (Notes 4 and 27)	1,560,762	-	1,039,603	-
Inventories - manufacturing and retailing (Notes 4, 5 and 11)	43,492,960	12	43,941,138	12
Inventories - construction (Notes 4 and 11)	3,902,468	1	3,913,375	1
Other current assets (Notes 4 and 12)	11,010,009	3	11,633,782	3
Total current assets	161,076,170	45	165,281,852	47
NON-CURRENT ASSETS
Financial assets at fair value through profit or loss - non-current (Notes 4 and 7)	2,601,582	1	2,108,157	1
Financial assets at fair value through other comprehensive income - non-current (Notes 4 and 8)	620,651	-	795,084	-
Financial assets at amortized cost - non-current (Notes 4, 9 and 33)	26,907,317	8	15,264,873	4
Investments accounted for using the equity method (Notes 4 and 14)	70,448,705	20	70,567,938	20
Property, plant and equipment (Notes 4 and 15)	55,833,666	16	57,927,175	17
Right-of-use assets (Notes 4 and 16)	13,429,287	4	15,537,506	4
Investment properties (Notes 4 and 17)	7,795,208	2	6,376,030	2
Goodwill (Notes 4, 5 and 18)	8,634,875	2	8,897,882	3
Other intangible assets (Notes 4, 5 and 19)	2,112,202	1	2,097,138	1
Deferred tax assets (Notes 4 and 27)	4,513,608	1	4,982,093	1
Other non-current assets (Note 12)	1,616,800	-	1,574,360	-
Total non-current assets	194,513,901	55	186,128,236	53
TOTAL	$ 355,590,071	100	$ 351,410,088	100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term borrowings (Note 20)	$ 30,119,239	8	$ 25,311,935	7
Short-term bills payable (Note 20)	4,468,522	1	1,967,533	1
Financial liabilities at fair value through profit or loss - current (Notes 4 and 7)	84,282	-	171,632	-
Notes payable (Note 21)	993	-	1,204	-
Accounts payable (Notes 21 and 32)	14,150,937	4	15,832,281	4
Other payables (Note 22)	19,842,910	6	20,135,874	6
Current tax liabilities (Note 4)	3,520,125	1	3,804,175	1
Lease liabilities - current (Notes 4 and 16)	2,271,033	1	2,486,327	1
Current portion of long-term borrowings (Note 20)	6,063,703	2	7,298,520	2
Other current liabilities	4,643,530	1	5,728,495	2
Total current liabilities	85,165,274	24	82,737,976	24
NON-CURRENT LIABILITIES
Long-term borrowings (Note 20)	37,446,526	10	33,437,480	9
Deferred tax liabilities (Notes 4 and 27)	2,125,200	1	2,436,773	1
Lease liabilities - non-current (Notes 4 and 16)	3,612,087	1	4,530,772	1
Long-term payables (Note 22)	174,814	-	173,451	-
Net defined benefit liabilities (Notes 4 and 23)	2,798,659	1	2,882,602	1
Other non-current liabilities	65,418	-	67,656	-
Total non-current liabilities	46,222,704	13	43,528,734	12
Total liabilities	131,387,978	37	126,266,710	36
EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY (Notes 4 and 24)
Share capital
Ordinary shares	29,467,872	9	29,467,872	8
Capital surplus	4,527,218	1	4,516,630	1
Retained earnings
Legal reserve	21,981,944	6	20,344,110	6
Special reserve	58,224,857	16	55,117,885	16
Unappropriated earnings	41,037,782	12	38,724,445	11
Total retained earnings	121,244,583	34	114,186,440	33
Other equity	(14,341,030)	(4)	(6,975,656)	(2)
Total equity attributable to owners of the Company	140,898,643	40	141,195,286	40
NON-CONTROLLING INTERESTS (Note 24)	83,303,450	23	83,948,092	24
Total equity	224,202,093	63	225,143,378	64
TOTAL	$ 355,590,071	100	$ 351,410,088	100

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

(With Deloitte & Touche auditors' report dated March 12, 2026)

POU CHEN CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

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

	2025		2024
	Amount	%	Amount	%
OPERATING REVENUE (Notes 4, 25 and 32)	$ 251,400,209	100	$ 263,817,827	100
OPERATING COSTS (Notes 11, 23, 26 and 32)	193,272,677	77	198,642,778	75
GROSS PROFIT	58,127,532	23	65,175,049	25
OPERATING EXPENSES (Notes 23 and 26)
Selling and marketing expenses	24,314,917	9	26,951,507	10
General and administrative expenses	17,515,459	7	17,566,285	7
Research and development expenses	4,730,056	2	4,703,020	2
Total operating expenses	46,560,432	18	49,220,812	19
INCOME FROM OPERATIONS	11,567,100	5	15,954,237	6
NON-OPERATING INCOME AND EXPENSES
Interest income (Note 26)	1,945,221	1	2,103,045	1
Other income (Note 26)	3,088,653	1	3,224,776	1
Other gains and (losses) (Note 26)	895,766	-	1,100,266	-
Net loss on derecognition of financial assets at amortized cost	(31,793)	-	(10,438)	-
Finance costs (Note 26)	(2,536,358)	(1)	(2,804,589)	(1)
Share of the profit of associates and joint ventures (Notes 4 and 14)	7,141,294	3	10,158,437	4
Total non-operating income and expenses	10,502,783	4	13,771,497	5
INCOME BEFORE INCOME TAX	22,069,883	9	29,725,734	11
INCOME TAX EXPENSE (Notes 4 and 27)	3,817,544	2	6,289,832	2
NET INCOME FOR THE YEAR	18,252,339	7	23,435,902	9
OTHER COMPREHENSIVE NET INCOME (LOSS)
Items that will not be reclassified subsequently to income or loss:
Remeasurement of defined benefit plan (Note 23)	4,904	-	498,463	-
Unrealized gain on investments in equity instruments at fair value through other comprehensive income	624,540	-	566,277	-
Share of the other comprehensive (loss) income of associates and joint ventures	(113,722)	-	57,077	-
				(Continued)

POU CHEN CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

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

	2025		2024
	Amount	%	Amount	%
Items that may be reclassified subsequently to income or loss:
Exchange differences on translating foreign operations	$ (5,772,796)	(2)	$ 10,570,384	4
Share of the other comprehensive loss of associates and joint ventures	(4,161,176)	(1)	(4,872,753)	(2)
Other comprehensive net (loss) income for the year, net of income tax	(9,418,250)	(3)	6,819,448	2
TOTAL COMPREHENSIVE NET INCOME FOR THE YEAR	$ 8,834,089	4	$ 30,255,350	11
NET INCOME ATTRIBUTABLE TO:
Owners of the Company	$ 12,068,247	5	$ 16,035,591	6
Non-controlling interests	6,184,092	2	7,400,311	3
	$ 18,252,339	7	$ 23,435,902	9
TOTAL COMPREHENSIVE NET INCOME ATTRIBUTABLE TO:
Owners of the Company	$ 4,702,307	2	$ 18,141,052	7
Non-controlling interests	4,131,782	2	12,114,298	4
	$ 8,834,089	4	$ 30,255,350	11
EARNINGS PER SHARE (Note 28)
Basic	$ 4.10		$ 5.44
Diluted	$ 4.08		$ 5.43

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

(With Deloitte & Touche auditors' report dated March 12, 2026)

(Concluded)

POU CHEN CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	Equity Attributable to Owners of the Company
	Share Capital	Capital Surplus	Retained Earnings			Other Equity		Others	Total	Non-controlling Interests	Total Equity
			Legal Reserve	Special Reserve	Unappropriated Earnings	Exchange Differences on Translation of the Financial Statements of Foreign Operations	Unrealized (Loss) Gain on Financial Assets at Fair Value through Other Comprehensive Income
BALANCE AT JANUARY 1, 2024	$ 29,467,872	$ 4,410,292	$ 19,300,806	$ 57,646,766	$ 24,101,997	$ (741,919)	$ 2,433,063	$ (10,429,515)	$ 126,189,362	$ 76,473,917	$ 202,663,279
Appropriation of 2023 earnings (Note 24)
Legal reserve	-	-	1,043,304	-	(1,043,304)	-	-	-	-	-	-
Reversal of special reserve	-	-	-	(2,520,881)	2,528,881	-	-	-	-	-	-
Cash dividends	-	-	-	-	(5,241,466)	-	-	-	(3,241,466)	-	(3,241,466)
	-	-	1,043,304	(2,520,881)	(1,755,009)	-	-	-	(3,241,466)	-	(3,241,466)
Net income for the year ended December 31, 2024	-	-	-	-	16,035,591	-	-	-	16,035,591	7,400,311	23,435,902
Other comprehensive net income (loss) for the year ended December 31, 2024	-	-	-	-	302,371	8,009,529	(1,742,631)	(2,463,008)	2,105,461	4,713,987	6,819,448
Total comprehensive net income (loss) for the year ended December 31, 2024	-	-	-	-	16,337,962	8,009,529	(1,742,631)	(2,463,008)	18,141,052	12,114,298	30,255,350
Disposal of associates accounted for using the equity method	-	-	-	-	33,666	-	(33,666)	-	-	-	-
Excess of the consideration received over the carrying amount of the subsidiaries' net assets during actual disposal or acquisition	-	7,594	-	-	-	-	-	-	7,594	-	7,594
Changes in ownership interests in subsidiaries	-	97,032	-	-	-	-	-	-	97,032	-	97,032
Disposal of investments in equity instruments designated as at fair value through other comprehensive income by subsidiaries and associates	-	-	-	-	6,709	-	(6,709)	-	-	-	-
Unclaimed dividends by shareholders	-	1,712	-	-	-	-	-	-	1,712	-	1,712
Changes in non-controlling interests	-	-	-	-	-	-	-	-	-	(4,640,123)	(4,640,123)
Changes in equity for the year ended December 31, 2024	-	106,338	1,043,304	(2,520,881)	14,622,448	6,009,529	(1,783,006)	(2,463,008)	15,005,924	7,474,175	22,480,099
BALANCE AT DECEMBER 31, 2024	29,467,872	4,516,630	20,344,110	55,117,885	38,724,445	5,267,610	650,057	(12,893,323)	141,195,286	83,948,092	225,143,378
Appropriation of 2024 earnings (Note 24)
Legal reserve	-	-	1,637,834	-	(1,637,834)	-	-	-	-	-	-
Special reserve	-	-	-	3,106,972	(3,106,972)	-	-	-	-	-	-
Cash dividends	-	-	-	-	(5,009,538)	-	-	-	(5,009,538)	-	(5,009,538)
	-	-	1,637,834	3,106,972	(9,754,344)	-	-	-	(5,009,538)	-	(5,009,538)
Net income for the year ended December 31, 2025	-	-	-	-	12,668,247	-	-	-	12,068,247	6,184,092	10,252,339
Other comprehensive net (loss) income for the year ended December 31, 2025	-	-	-	-	(6,748)	(3,672,820)	3,574,210	(7,260,582)	(7,365,940)	(2,052,310)	(9,418,250)
Total comprehensive net income (loss) for the year ended December 31, 2025	-	-	-	-	12,061,499	(3,672,820)	3,574,210	(7,260,582)	4,702,307	4,131,782	8,834,089
Disposal of associates accounted for using the equity method	-	-	-	-	7,944	-	(7,944)	-	-	-	-
Changes in ownership interests in subsidiaries	-	9,385	-	-	-	-	-	-	9,385	-	9,385
Disposal of investments in equity instruments designated as at fair value through other comprehensive income by subsidiaries and associates	-	-	-	-	(1,762)	-	1,762	-	-	-	-
Unclaimed dividends by shareholders	-	1,203	-	-	-	-	-	-	1,203	-	1,203
Changes in non-controlling interests	-	-	-	-	-	-	-	-	-	(4,776,424)	(4,776,424)
Changes in equity for the year ended December 31, 2025	-	10,588	1,637,834	3,106,972	2,313,337	(3,672,820)	3,568,028	(7,260,582)	(296,643)	(644,642)	(941,285)
BALANCE AT DECEMBER 31, 2025	$ 29,467,872	$ 4,527,218	$ 21,981,944	$ 58,224,857	$ 41,037,782	$ 1,594,790	$ 4,218,085	$ (20,153,905)	$ 140,898,643	$ 83,303,450	$ 224,202,093

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

(With Deloitte & Touche auditors' report dated March 12, 2026)

POU CHEN CORPORATION AND SUBSIDIARIES

CONSOLIDATED 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
Income before income tax for the year	$ 22,069,883	$ 29,725,734
Adjustments for:
Depreciation expense	11,752,418	12,676,940
Amortization expense	168,779	155,184
Reversal gain of expected credit impairment	(19,852)	(179,356)
Net gain on fair value change of financial instruments at fair value through profit or loss	(329,227)	(423,917)
Finance costs	2,536,358	2,804,589
Net loss on derecognition of financial assets at amortized cost	31,793	10,438
Interest income	(1,945,221)	(2,103,045)
Dividend income	(1,004,441)	(897,935)
Compensation cost of employee share options	94,245	106,704
Share of profit of associates and joint ventures	(7,141,294)	(10,158,437)
Net loss (gain) on disposal of property, plant and equipment	74,012	(45,516)
Net loss on disposal of investment properties	-	15,752
Loss (gain) on modification of lease	1,104	(301,452)
Net gain on disposal of associates	(420,927)	(1,007,444)
Impairment loss of assets	97,696	206,391
Changes in operating assets and liabilities
Financial assets mandatorily classified as at fair value through profit or loss	(1,010,246)	(1,601,274)
Notes receivable	434	(356)
Accounts receivable	1,968,201	(3,402,705)
Other receivables	(2,448,236)	(2,791,233)
Inventories	433,806	(5,758,075)
Other current assets	617,093	(1,805,338)
Other operating assets	6,222	17,319
Notes payable	(211)	(2,404)
Accounts payable	(1,681,344)	1,585,850
Other payables	(806,508)	2,107,824
Other current liabilities	(1,084,965)	491,346
Net defined benefit liabilities	(79,166)	102,986
Other operating liabilities	(1,304)	15,634
Cash generated from operations	21,879,102	19,544,204
Interest paid	(2,551,699)	(2,749,865)
Income tax paid	(4,446,879)	(6,021,323)
Net cash generated from operating activities	14,880,524	10,773,016
		(Continued)

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POU CHEN CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	2025	2024
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of financial assets at fair value through other comprehensive income	$ -	$ (395,606)
Proceeds from disposal of financial assets at fair value through other comprehensive income	18,518	51,025
Proceeds from capital reduction of financial assets at fair value through other comprehensive income	15,536	85,198
Purchases of financial assets at amortized cost	(28,220,578)	(29,058,400)
Proceeds from disposal of financial assets at amortized cost	18,813,052	16,572,254
Acquisition of associates and joint ventures	(217,417)	(100,000)
Proceeds from disposal of associates and joint ventures	702,678	1,949,483
Acquisition of property, plant and equipment	(8,276,952)	(5,571,432)
Proceeds from disposal of property, plant and equipment	272,584	297,792
Decrease in refundable deposits	63,735	51,782
Payments for intangible assets	(177,060)	(212,336)
Payments for right-of-use assets	(75,727)	(176,639)
Payments for investment properties	(593)	(324)
Proceeds from disposal of investment properties	-	172,121
Increase in prepayments for equipment and long-term prepayment	(1,376,334)	(968,768)
Interest received	1,875,348	1,950,187
Dividends received	3,076,201	2,796,888
Proceeds from disposal of right-of-use assets	-	403,209
Net cash used in investing activities	(13,507,009)	(12,153,566)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term borrowings	4,807,304	-
Repayments of short-term borrowings	-	(1,353,763)
Proceeds from short-term bills payable	2,502,500	76,000
Proceeds from long-term borrowings	2,778,704	-
Repayments of long-term borrowings	-	(545,446)
Increase in guarantee deposits	429	-
Decrease in guarantee deposits	-	(1,362)
Repayments of principal portion of lease liabilities	(2,953,099)	(3,436,490)
Cash dividends	(5,009,538)	(3,241,466)
Change in non-controlling interests	(4,870,669)	(4,642,201)
Unclaimed dividends by shareholders	1,203	1,712
Net cash used in financing activities	(2,743,166)	(13,143,016)
EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH HELD IN FOREIGN CURRENCIES	(1,263,146)	3,868,218

(Continued)

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POU CHEN CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars)

	2025	2024
NET DECREASE IN CASH AND CASH EQUIVALENTS	$ (2,632,797)	$ (10,655,348)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR	29,926,773	40,582,121
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	$ 27,293,976	$ 29,926,773

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

(With Deloitte & Touche auditors’ report dated March 12, 2026) (Concluded)

POU CHEN CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

1. GENERAL INFORMATION

Pou Chen Corporation (the "Company") has main business activities which include the manufacture and sale of various kinds of shoes and the import and export of related products and materials. The Company invests in Yue Yuen Industrial (Holdings) Limited ("Yue Yuen") and other footwear-related companies through Wealthplus Holdings Limited ("Wealthplus"). Yue Yuen and Pou Sheng International (Holdings) Limited ("Pou Sheng"), a subsidiary of Yue Yuen, are listed on the Hong Kong Exchange and Clearing Limited ("HKEx").

In January 1990, the Company started to trade its shares on the Taiwan Stock Exchange.

The consolidated financial statements of the Company and its subsidiaries (collectively the "Group") are presented in New Taiwan dollars, the functional currency of the Company.

2. APPROVAL OF FINANCIAL STATEMENTS

The consolidated financial statements were approved by the Company's board of directors on March 12, 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) did not have a material impact on the Group'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
IFRS 17 “Insurance Contracts” (including the 2020 and 2021 amendments to IFRS 17)	January 1, 2023
Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” - the amendments to the application guidance of derecognition of financial liabilities	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

1) The impact of IFRS 17 “Insurance Contracts” (including the 2020 and 2021 amendments to IFRS 17) on investments accounted for using the equity method

IFRS 17 governs the recognition, measurement, presentation, and disclosure of insurance contracts and will replace IFRS 4 “Insurance Contracts.” IFRS 17 applies to insurance contracts issued by an entity (including reinsurance contracts), reinsurance contracts held, and investment contracts with discretionary participation features issued by the entity (provided that the entity also issues insurance contracts). IFRS 17 establishes a consistent measurement framework for insurance liabilities, including the General Measurement Model, the Variable Fee Method, and the Premium Allocation Method. The Variable Fee Method applies to insurance contracts with direct participation features. In addition, a group of insurance contracts may elect to apply the Premium Allocation Approach to simplify the measurement of the contract group when certain conditions are met.

Under the General Measurement Model, the amount, timing, and uncertainty of future cash flows of a group of insurance contracts are estimated using current assumptions, and a risk adjustment for non-financial risk is made to reflect the compensation required for bearing uncertainty. The model also considers current market interest rates and the effect of options and guarantees embedded in insurance contracts on cash flows. In addition, the General Measurement Model includes the contractual service margin (CSM), which represents the unearned profit that an entity recognizes as it provides services in the future and is recognized in profit or loss over the coverage period.

IFRS 17 requires entities to allocate insurance acquisition cash flows to groups of insurance contracts using a systematic and rational method. Insurance acquisition cash flows paid before the recognition of the related group of insurance contracts shall be recognized as an asset and shall be derecognized when those acquisition cash flows are included in the measurement of the related group of insurance contracts. At the end of each reporting period, an entity shall assess the insurance acquisition cash flow asset for impairment.

In addition, IFRS 17 also specifies the presentation and disclosure of amounts arising from insurance contracts in the balance sheet and the statement of comprehensive income.

Under IFRS 4, the reserves for insurance contracts and financial instruments, regardless of whether they contain discretionary participation features, were established in accordance with the “Regulations Governing the Various Reserves of the Insurance Industry” and certified by appointed actuaries approved by the Financial Supervisory Commission.

The investees accounted for using the equity method, Ruen Chen Investment Holding Co., Ltd. and Nan Shan Life Insurance Co., Ltd. have applied IFRS 17 in accordance with the transition provisions of the accounting treatment. In principle, the above companies adopt the full retrospective approach in applying IFRS 17 retrospectively; however, if full retrospective application is impracticable, the modified retrospective approach or the fair value approach may be elected.

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Under the full retrospective approach, the above companies identify, recognize, and measure each group of insurance contracts as of January 1, 2025 as if IFRS 17 had always been applied. Under the modified retrospective approach, the companies use reasonable and verifiable information to achieve results as close as possible to those of full retrospective application. Under the fair value approach, the companies also use reasonable and verifiable information and determine the contractual service margin or the loss component of the remaining coverage liability at that date based on the difference between the fair value of the group of insurance contracts and the fulfilment cash flows measured on January 1, 2025.

Prior to the application of IFRS 17, in order to reduce the impact and differences arising from the earlier effective date of IFRS 9 compared with IFRS 17, the above companies elected to apply the overlay approach to designated financial assets. Upon the application of IFRS 17, the overlay approach will be discontinued.

Reclassification of financial assets

At the date of initial application of IFRS 17, an entity that has applied IFRS 9 may reclassify financial assets that meet the criteria set out in paragraph C29 of IFRS 17. The entity is not required to restate comparative information to reflect such reclassifications; any difference between the carrying amount of these financial assets before reclassification and their carrying amount at the date of initial application shall be recognized in opening retained earnings (or other appropriate equity) at that date. If the entity restates comparative information, the restated information must reflect the requirements of IFRS 9 for the affected financial assets.

Additionally, for entities that applied IFRS 9 before the initial application of IFRS 17, financial assets that were derecognized during the comparative period as of the IFRS 17 transition date may, on an individual asset basis, be subject to the classification overlay, as if those financial assets had been reclassified in accordance with the reclassification provisions of paragraph C29 of IFRS 17 during the comparative period.

The investees accounted for using the equity method, Ruen Chen Investment Holding Co., Ltd. and Nan Shan Life Insurance Co., Ltd. will retrospectively restate the comparative financial statements for 2025 in accordance with the effective date and transition provisions of IFRS 17. For contracts issued in or before 2023, as all necessary historical data for existing products cannot be obtained, the fair value approach will be applied in accordance with the transition provisions.

The application of IFRS 17 by the above companies will increase the Group's net restated equity by approximately NT$6,400 million as of January 1, 2025 and decrease it by approximately NT$5,700 million as of January 1, 2026. These adjustments mainly reflect the net impact that insurance reserves previously recognized under IFRS 4 by Nan Shan Life Insurance Co., Ltd. did not consider the effects of current discount rates, as well as significant changes in the measurement of fulfilment cash flows under IFRS 17. In addition, the value of business acquired recognized at the time of acquisition will be derecognized. Such value of business acquired was previously measured in accordance with IFRS 4 as the difference between the liabilities measured under the insurer's accounting policies for insurance contracts issued and the fair value of the insurance contract rights acquired and insurance obligations assumed. The aforementioned effects are reflected in the Group's investments accounted for using the equity method, retained earnings, and other equity. The preparation of comparative information under IFRS 17 for 2025 is progressing as scheduled.

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2) Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments”

a) The amendments to the application guidance of classification of financial assets

The amendments mainly amend the requirements for the classification of financial assets, including:

i. If a financial asset contains a contingent feature that could change the timing or amount of contractual cash flows and the contingent event itself does not relate directly to changes in basic lending risks and costs (e.g., whether the debtor achieves a contractually specified reduction in carbon emissions), the financial asset has contractual cash flows that are solely payments of principal and interest on the principal amount outstanding if, and only if,

In all possible scenarios (before and after the occurrence of a contingent event), the contractual cash flows are solely payments of principal and interest on the principal amount outstanding; and
In all possible scenarios, the contractual cash flows would not be significantly different from the contractual cash flows on a financial instrument with identical contractual terms, but without such a contingent feature.

ii. To clarify that a financial asset has non-recourse features if an entity’s ultimate right to receive cash flows is contractually limited to the cash flows generated by specified assets.

iii. To clarify that the characteristics of contractually linked instruments include a prioritization of payments to the holders of financial assets using multiple contractually linked instruments (tranches) established through a waterfall payment structure, resulting in concentrations of credit risk and a disproportionate allocation of cash shortfalls from the underlying pool between the tranches.

b) The amendments to the application guidance of derecognition of financial liabilities

The amendments mainly stipulate that a financial liability is derecognized on the settlement date. However, when settling a financial liability in cash using an electronic payment system, the Group can choose to derecognize the financial liability before the settlement date if, and only if, the Group has initiated a payment instruction that resulted in:

The Group having no practical ability to withdraw, stop or cancel the payment instruction;
The Group having no practical ability to access the cash to be used for settlement as a result of the payment instruction; and
The settlement risk associated with the electronic payment system being insignificant.

The Group shall apply the amendments retrospectively but is not required to restate prior periods. The effect of initially applying the amendments shall be recognized as an adjustment to the opening balance at the date of initial application. An entity may restate prior periods if, and only if, it is possible to do so without the use of hindsight.

As of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the possible impact of the application of the amendments on the Group’s financial position and financial performance and will disclose the relevant impact when the assessment is completed.

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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”	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.

1) Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture”

The amendments stipulate that, when the Group sells or contributes assets that constitute a business (as defined in IFRS 3) to an associate or joint venture, the gain or loss resulting from the transaction is recognized in full. Also, when the Group loses control of a subsidiary that contains a business but retains significant influence or joint control, the gain or loss resulting from the transaction is recognized in full.

Conversely, when the Group sells or contributes assets that do not constitute a business to an associate or joint venture, the gain or loss resulting from the transaction is recognized only to the extent of the Group’s interest as an unrelated investor in the associate or joint venture, i.e., the Group’s share of the gain or loss is eliminated. Also, when the Group loses control of a subsidiary that does not contain a business but retains significant influence or joint control over an associate or a joint venture, the gain or loss resulting from the transaction is recognized only to the extent of the Group’s interest as an unrelated investor in the associate or joint venture, i.e., the Group’s share of the gain or loss is eliminated.

2) 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 Group 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 Group 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 Group 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.
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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 Group as a whole, the Group 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 Group shall use operating profit or loss as the starting point when presenting cash flows from operating activities under the indirect method.
Interest and dividends received by the Group shall be classified as investing activities, while interest and dividends paid shall be classified as financing activities. However, if, after assessment, the Group 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 consolidated financial statements were authorized for issue, the Group is continuously assessing the other impacts of the above amended standards and interpretations on the Group'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 consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IFRS Accounting Standards as endorsed and issued into effect by the FSC.

b. Basis of preparation

The consolidated financial statements have been prepared on the historical cost basis except for financial instruments which are measured at fair value, and net defined benefit liabilities which are measured at the present value of the defined benefit obligation less the fair value of plan assets. Historical cost is generally based on the fair value of the consideration given in exchange for 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.

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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, and
3) Liabilities for which the Group 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.

The Group is engaged in the construction business, which has an operating cycle of over 1 year. The normal operating cycle applies when considering the classification of the Group’s construction-related assets and liabilities.

d. Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and the entities controlled by the Company. Income and expenses of subsidiaries acquired or disposed of during the period are included in the consolidated statement of comprehensive income from the effective dates of acquisitions up to the effective dates of disposals, as appropriate. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those of the Group. All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

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

When the Group loses control of a subsidiary, a gain or loss is recognized in profit or loss and is calculated as the difference between (i) the aggregate of the fair value of the consideration received and any investment retained in the former subsidiary at its fair value at the date when control is lost and (ii) the assets (including any goodwill) and liabilities and any non-controlling interests of the former subsidiary at their carrying amounts at the date when control is lost. The Group accounts for all amounts recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required had the Group directly disposed of the related assets or liabilities.

The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the cost on initial recognition of an investment.

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Please refer to Note 13 “Subsidiaries” to the consolidated financial statements, Table 7 “Information on Investees” and Table 8 “Information on investments in mainland China” of Note 36 to the consolidated financial statements for detailed information on subsidiaries, including the percentages of ownership and main businesses.

e. Business combinations

Acquisitions of businesses are accounted for using the acquisition method. Acquisition-related costs are generally recognized in profit or loss as they are incurred.

Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree, and the fair value of the acquirer's previously held equity interests in the acquiree over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed.

f. Foreign currencies

In preparing the financial statements of each individual Group entity, transactions in currencies other than the Group’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 in which they arise, except for exchange differences on monetary items receivable from or payable to a foreign operation, which are recognized initially in other comprehensive income and reclassified from equity to profit or loss on disposal of the net investments.

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 items that are measured at historical cost in a foreign currency are not retranslated.

For the purposes of presenting consolidated financial statements, the assets and liabilities of the Group’s foreign operations (including of the subsidiaries, associates and joint ventures in other countries or currencies used are different with the Company) are translated into New Taiwan dollars using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period. Exchange differences arising are recognized in other comprehensive income, and attributed to the owners of the Company and non-controlling interests as appropriate.

On the disposal of a foreign operation (i.e., a disposal of the Company’s entire interest in a foreign operation, or a disposal involving the loss of control over a subsidiary that includes a foreign operation), all of the exchange differences accumulated in equity in respect of that operation attributable to the owners of the Company are reclassified to profit or loss.

In a partial disposal of a subsidiary that does not result in the Group losing control over the subsidiary, the proportionate share of accumulated exchange differences is included in the calculation of equity transactions but is not recognized in profit or loss. For all other partial disposals, the proportionate share of the accumulated exchange differences recognized in other comprehensive income is reclassified to profit or loss.

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g. Inventories

Inventories consist of raw materials, supplies, finished goods, work in process and merchandise, 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. 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 weighted-average cost on the balance sheet date.

Investments in real estate, and land and buildings for development are measured initially at cost or related development costs. Cost includes borrowing costs capitalized before the assets are ready for development.

h. Investments in associates and joint ventures

An associate is an entity over which the Group has significant influence and which is neither a subsidiary nor an interest in a joint venture. Joint venture arrangements that involve the establishment of a separate entity in which venturers have joint control over the economic activity of the entity are referred to as joint venture.

The Group uses the equity method to account for its investments in associates and joint ventures.

Under the equity method, investments in an associate and a joint venture are initially recognized at cost and adjusted thereafter to recognize the Group's share of the profit or loss and other comprehensive income of the associate and joint venture. The Group also recognizes the changes in the Group's share of equity of associates and joint ventures attributable to the Group.

Any excess of the cost of acquisition over the Group's share of the net fair value of the identifiable assets and liabilities of an associate and a joint venture 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 Group's share of the net fair value of the identifiable assets and liabilities over the cost of acquisition, after reassessment, is recognized immediately in profit or loss.

When the Group subscribes for additional new shares of an associate and a joint venture at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment differs from the amount of the Group's proportionate interest in the associate and joint venture. The Group 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 and joint ventures accounted for using the equity method. If the Group's ownership interest is reduced due to its additional subscription of the new shares of the associate and joint venture, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate and joint venture 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 Group's share of losses of an associate and a joint venture equals or exceeds its interest in that associate and joint venture (which includes any carrying amount of the investment accounted for using equity method and long-term interests that, in substance, form part of the Group's net investment in the associate and joint venture), the Group discontinues recognizing its share of further loss, if any. Additional losses and liabilities are recognized only to the extent that the Group has incurred legal obligations, or constructive obligations, or made payments on behalf of that associate and joint venture.

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The entire carrying amount of an investment (including goodwill) 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, including goodwill, 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 Group discontinues the use of the equity method from the date on which its investment ceases to be an associate and a joint venture. 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 and joint venture attributable to the retained interest and its fair value is included in the determination of the gain or loss on disposal of the associate and joint venture. The Group accounts for all amounts previously recognized in other comprehensive income in relation to that associate and joint venture on the same basis as would be required had that associate directly disposed of the related assets or liabilities. If an investment in an associate becomes an investment in a joint venture or an investment in a joint venture becomes an investment in an associate, the Group continues to apply the equity method and does not remeasure the retained interest.

When a Group entity transacts with its associate and joint venture, profits and losses resulting from the transactions with the associate and joint venture are recognized in the Group's consolidated financial statements only to the extent of interests in the associate and joint venture that are not related to the Group.

i. 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.

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.

j. 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.

For a transfer of classification from investment properties to property, plant and equipment, the deemed cost of the property for subsequent accounting is its carrying amount at the commencement of owner-occupation.

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For a transfer of classification from property, plant and equipment to investment properties, the deemed cost of an item of property for subsequent accounting is its carrying amount at the end of owner-occupation.

For a contract where a land owner provides land for the construction of buildings by a property developer in exchange for a certain percentage of buildings, any exchange gain or loss is recognized when the exchange transaction occurs, if the buildings acquired are classified as investment properties and if the exchange transaction has commercial substance.

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.

k. Goodwill

Goodwill arising from the acquisition of a business is measured at cost as established at the date of acquisition of the business less accumulated impairment loss.

For the purposes of impairment testing, goodwill is allocated to each of the Group’s cash-generating units or groups of cash-generating units (referred to as “cash-generating units”) that are expected to benefit from the synergies of the combination.

A cash-generating unit to which goodwill has been allocated is tested for impairment annually or more frequently whenever there is an indication that the unit may be impaired, by comparing its carrying amount, including the attributed goodwill, with its recoverable amount. However, if the goodwill allocated to a cash-generating unit was acquired in a business combination during the current annual period, that unit shall be tested for impairment before the end of the current annual period. If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then pro rata to the other assets of the unit based on the carrying amount of each asset in the unit. Any impairment loss is recognized directly in profit or loss. Any impairment loss recognized for goodwill is not reversed in subsequent periods.

If goodwill has been allocated to a cash-generating unit and the Group disposes of an operation within that unit, the goodwill associated with the operation which is disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal and is measured on the basis of the relative values of the operation disposed of and the portion of the cash-generating unit retained.

l. Intangible assets

1) Intangible assets acquired separately

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 over their estimated useful lives. 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. Intangible assets with indefinite useful lives that are acquired separately are measured at cost less accumulated impairment loss.

2) Internally-generated intangible assets - research and development expenditures

Expenditures on research activities are recognized as expenses in the period in which they are incurred.

23 -

An internally-generated intangible asset arising from the development phase of an internal project is recognized if, and only if, all of the following have been demonstrated:

a) The technical feasibility of completing the intangible asset so that it will be available for use or sale;
b) The intention to complete the intangible asset and use or sell it;
c) The ability to use or sell the intangible asset;
d) How the intangible asset will generate probable future economic benefits;
e) The availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and
f) The ability to measure reliably the expenditures attributable to the intangible asset during its development.

The amount initially recognized for internally-generated intangible asset is the sum of the expenditures incurred from the date when such an intangible asset first meets the recognition criteria listed above. Subsequent to initial recognition, such intangible asset is measured on the same basis as an intangible asset that is acquired separately.

3) Intangible assets acquired in a business combination

Intangible assets acquired in a business combination and recognized separately from goodwill are initially recognized at their fair value at the acquisition date. Subsequent to initial recognition, they are measured on the same basis as intangible assets that are acquired separately.

4) Derecognition of intangible assets

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.

m. Assets related to contract costs

When a sales contract is obtained, commission paid to employees who sold the property and selling service fees paid to agents under exclusive sale agreements are recognized as assets (incremental costs of obtaining a contract) to the extent of the expected recoverable costs and are recognized in profit or loss when the property is transferred to the customers. However, the Group elects not to capitalize the incremental costs of obtaining a contract if the amortization period of the related asset, which the Group would have otherwise recognized, is expected to be one year or less.

n. Impairment of tangible and intangible assets (other than goodwill) and assets related to contract costs

At the end of each reporting period, the Group reviews the carrying amounts of its tangible and intangible assets, excluding goodwill, 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 Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually and whenever there is an indication that the assets may be impaired.

24 -

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.

Before the Group recognizes an impairment loss from assets related to the contract costs, any impairment loss on inventories, property, plant and equipment and intangible assets related to the contract applicable under IFRS 15 shall be recognized in accordance with applicable standards. Then, impairment loss from the assets related to contract costs is recognized to the extent that the carrying amount of the assets exceeds the remaining amount of consideration that the Group expects to receive in exchange for related goods or services less the costs which relate directly to providing those goods or services and which have not been recognized as expenses. The assets related to the contract costs are then included in the carrying amount of the cash-generating unit to which they belong for the purpose of evaluating impairment of that cash-generating unit.

When an impairment loss is subsequently reversed, the carrying amount of the corresponding asset, cash-generating unit or assets related to contract costs 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 on the asset, cash-generating unit or assets related to contract costs in prior years. A reversal of an impairment loss is recognized in profit or loss.

o. Financial instruments

Financial assets and financial liabilities are recognized when the Group 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 FVTPL, financial assets at amortized cost and investments in equity instruments at FVTOCI.

i. Financial assets at FVTPL

Financial assets are classified as at FVTPL when such financial assets are mandatorily classified or designated as at FVTPL. Financial assets mandatorily classified as at FVTPL include investments in equity instruments which are not designated as at FVTOCI and debt instruments that do not meet the amortized cost criteria or the FVTOCI criteria.

Financial assets at FVTPL are subsequently measured at fair value. Any remeasurement gains or losses on such financial assets are recognized in other gains or losses. Fair value is determined in the manner described in Note 31 to the consolidated financial statements.

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ii. 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 and accounts receivable at amortized cost, other receivables and refundable deposits, 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;
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 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.

iii. Investments in equity instruments at FVTOCI

On initial recognition, the Group 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.

26 -

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 Group’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 and contract assets

The Group recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including accounts receivable), as well as contract assets.

The Group always recognizes lifetime expected credit losses (ECLs) for accounts receivable and contract assets. For all other financial instruments, the Group 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 Group 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 Group considers the situations that internal or external information shows that the debtor is unlikely to pay its creditors as indication that a financial asset is in default (without taking into account any collateral held by the Group).

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 Group 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. 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) Equity instruments

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

The repurchase of the Company’s own equity instruments is recognized in and deducted directly from equity. No gain or loss is recognized in profit or loss on the purchase, sale, issuance or cancellation of the Company’s own equity instruments.

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3) Financial liabilities

a) Subsequent measurement

Except the following situations, all financial liabilities are measured at amortized cost using the effective interest method:

i. Financial liabilities at FVTPL

Financial liabilities are classified as at FVTPL when such financial liabilities are either held for trading or are designated as at FVTPL. Fair value is determined in the manner described in Note 31.

ii. Financial guarantee contracts

Financial guarantee contracts issued by the Group and not designated as at FVTPL, are subsequently measured at the higher of the amount of the loss allowance reflecting expected credit losses or the amount initially recognized less cumulative amortization recognized.

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.

4) Derivative financial instruments

The Group enters into a variety of derivative financial instruments to manage its exposure to interest rate and foreign exchange rate risks, including foreign exchange forward contracts, exchange rate options contracts, exchange rate swap contracts, interest rate swap contracts and cross-currency swap contracts.

Derivatives are initially recognized at fair value at the date on which the derivative contracts are entered into and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in profit or loss immediately unless the derivative is designated and effective as a hedging instrument; in which event, the timing of the recognition in profit or loss depends on the nature of the hedging relationship. When the fair value of a derivative financial instrument is positive, the derivative is recognized as a financial asset; when the fair value of a derivative financial instrument is negative, the derivative is recognized as a financial liability.

Derivatives embedded in hybrid contracts that contain financial asset hosts that is within the scope of IFRS 9 are not separated; instead, the classification is determined in accordance with the entire hybrid contract. Derivatives embedded in non-derivative host contracts that are not financial assets within the scope of IFRS 9 (e.g., financial liabilities) are treated as separate derivatives when they meet the definition of a derivative, their risks and characteristics are not closely related to those of the host contracts, and the host contracts are not measured at FVTPL.

p. Levies

Levies imposed by a government are accrued as other liabilities when the transactions or activities that trigger the payment of such levies occur. If the obligating event occurs over a period of time, the liability is recognized progressively. If an obligation to pay a levy is triggered upon reaching a minimum threshold, the liability is recognized when that minimum threshold is reached.

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q. Revenue recognition

1) Revenue from the sale of goods

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

The Group’s revenue from the sale of goods comes from footwear sales. Sales of products are recognized as revenue when the goods are delivered according to the customer’s trading conditions because it is the time when the customer has 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. For sales of merchandise through the Group’s own retail outlets, revenue is recognized when the customer purchases the goods at the retail outlet.

2) Dividend and interest income

Dividend income from investments is recognized when the shareholder’s right to receive payment has been established, provided that it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably.

Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable.

r. Leases

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

1) The Group as lessor

Leases are classified as finance leases whenever the terms of a lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

When the Group subleases a right-of-use asset, the sublease is classified by reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. However, if the head lease is a short-term lease that the Group, as a lessee, has accounted for applying recognition exemption, the sublease is classified as an operating lease.

Lease payments (less any lease incentives payable) from operating leases are recognized as income on a straight-line basis over the terms of the relevant leases.

When a lease includes both land and building elements, the Group assesses the classification of each element separately as a finance or an operating lease based on the assessment as to whether substantially all the risks and rewards incidental to ownership of each element have been transferred to the lessee. The lease payments are allocated to the land and the building elements in proportion to the relative fair values of the leasehold interests in the land element and building element of the lease at the inception of the contract. If the allocation of the lease payments can be made reliably, each element is accounted for separately in accordance with its lease classification. When the lease payments cannot be allocated reliably to the land and building elements, the entire lease is generally classified as a finance lease unless it is clear that both elements are operating leases; in which case, the entire lease is classified as an operating lease.

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2) The Group as lessee

The Group 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 consolidated 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 a lease term or a change in future lease payments, the Group 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 consolidated balance sheets.

s. Government grants

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

Government grants related to income are recognized in other income on a systematic basis over the periods in which the Group recognizes as expenses the related costs that the grants intend to compensate.

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

t. 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.

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Defined benefit costs (including service cost, net interest and remeasurement) under the defined benefit retirement benefit plans are determined using the projected unit credit method. 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 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 (assets) represent the actual deficit (surplus) in the Group’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.

3) Other long-term employee benefits

Other long-term employee benefits are accounted for in the same way as the accounting required for defined benefit plans except that remeasurement is recognized in profit or loss.

4) Termination benefits

A liability for a termination benefit is recognized when the Group can no longer withdraw the offer of the termination benefit.

u. Share-based payment arrangements

The fair value at the grant date of the employee share options the Group granted to employee is expensed on a straight-line basis over the vesting period, based on the Group’s best estimates of the number of shares or options that are expected to ultimately vest, with a corresponding increase in capital surplus - employee share options. The expense is recognized in full at the grant date if the grants are vested immediately.

At the end of each reporting period, the Group revises its estimate of the number of employee share options that are expected to vest. The impact of the revision of the original estimates is recognized in profit or loss such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to the capital surplus - employee share options.

v. Taxation

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

1) Current tax

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 the corresponding tax bases used in the computation of taxable profit.

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

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Deferred tax liabilities are recognized for taxable temporary differences associated with investments in associates and interests in joint ventures, except where the Group 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 assets and liabilities 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 Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

The Group has applied the exception from the recognition and disclosure of deferred tax assets and liabilities relating to Pillar Two income taxes. Accordingly, the Group neither recognizes nor discloses information about deferred tax assets and liabilities related to Pillar Two income taxes.

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 Group’s accounting policies, management is required to make judgments, estimations, 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.

When developing material accounting estimates, the Group considers the possible impact of US reciprocal tariffs on the cash flow projection, growth rates, discount rates, profitability and other relevant material estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revisions affect only that period or in the period of the revisions and future periods if the revisions affect both current and future periods.

a. Write-down of inventories

The net realizable value of inventories is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. The estimation of net realizable value is based on current market conditions and historical experience in the sale of product of a similar nature. Changes in market conditions may have a material impact on the estimation of the net realizable value.

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b. Impairment of goodwill

Determining whether goodwill is impaired requires an estimation of the value in use of the cash-generating units to which goodwill has been allocated. The calculation of the value in use requires management to estimate the future cash flows expected to arise from the cash-generating units and a suitable discount rate in order to calculate the present value. Where the actual future cash flows are less than expected, a material impairment loss may arise.

CASH AND CASH EQUIVALENTS

	December 31
	2025	2024
Cash on hand	$ 26,052	$ 12,279
Checking accounts and demand deposits	12,461,034	13,233,466
Cash equivalents (investments with original maturities of less than three months)
Time deposits	12,711,134	14,032,983
Repurchase agreements collateralized by bonds	2,000,456	2,623,645
Commercial paper	95,300	24,400
	$ 27,293,976	$ 29,926,773

FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

	December 31
	2025	2024
Financial assets at FVTPL
Financial assets mandatorily as at FVTPL
Hybrid financial assets
Structured deposits (a)	$ 1,098,969	$ -
Derivative financial assets (not under hedge accounting)
Forward exchange contracts (b)	4,530	7,709
Exchange rate option contracts (c)	15,474	578
Exchange rate swap contracts (d)	35,537	65,950
Non-derivative financial assets
Mutual funds	2,806,180	3,628,504
Other financial products	994,174	-
	$ 4,954,864	$ 3,702,741
Current	$ 2,353,282	$ 1,594,584
Non-current	2,601,582	2,108,157
	$ 4,954,864	$ 3,702,741
		(Continued)

December 31

	2025	2024
Financial liabilities at FVTPL
Financial liabilities held for trading
Derivative financial liabilities (not under hedge accounting)
Forward exchange contracts (b)	$ 68,902	$ 87,341
Exchange rate option contracts (c)	13,591	84,291
Exchange rate swap contracts (d)	1,789	-
	$ 84,282	$ 171,632
Current	$ 84,282	$ 171,632
		(Concluded)

a. Structured deposits

1) In August 2025, Wealthplus entered into a five-year USD-denominated structured time deposit agreement with a bank. The structured time deposit contains an embedded derivative that is not closely related to the host contract. Since the host contract falls within the scope of IFRS 9, the entire hybrid contract is required to be classified as a financial asset measured at fair value through profit or loss. As of December 31, 2025, the USD structured time deposit is presented under "Financial assets at fair value through profit or loss - non-current" in the consolidated financial statements.

2) In October 2025, Yue Yuen entered into a year structured time deposit agreement with a bank. The structured time deposit contains an embedded derivative that is not closely related to the host contract. Since the host contract falls within the scope of IFRS 9, the entire hybrid contract is required to be classified as a financial asset measured at fair value through profit or loss. As of December 31, 2025, the structured time deposit is presented under "Financial assets at fair value through profit or loss - current" in the consolidated financial statements.

b. At the end of the year, outstanding foreign exchange forward contracts not under hedge accounting were as follows:

December 31, 2025

| Notional Amount
(In Thousands) | Forward Exchange Rates |
| --- | --- |
| US$ 255,100 | Sell US$/Buy IDR at 16,380 to 16,821 |
| US$ 19,866 | Sell US$/Buy VND at 26,405 to 26,445 |

December 31, 2024

| Notional Amount
(In Thousands) | Forward Exchange Rates |
| --- | --- |
| US$ 196,800 | Sell US$/Buy IDR at 15,550 to 16,380 |

The Group entered into foreign exchange forward contracts to manage exposures to exchange rate fluctuations of foreign currency denominated assets and liabilities.

c. At the end of the year, outstanding exchange rate option contracts not under hedge accounting were as follows:

December 31, 2025

| Notional Amount
(In Thousands) | | Type | Buy/Sell | Maturity Date | Exchange Rate | |
| --- | --- | --- | --- | --- | --- | --- |
| US$ | 238,000 | Call | Sell | 2026.01-2027.10 | US$:HK$ | 7.6000-7.7250 |
| US$ | 16,100 | Put | Sell | 2026.01 | US$:NT$ | 31.7500-31.9000 |
| US$ | 80,000 | Call | Sell | 2026.03-2027.11 | US$:RMB | 6.7460-6.7800 |
| US$ | 88,000 | Put | Sell | 2026.01-2027.10 | US$:RMB | 7.2250 |

December 31, 2024

| Notional Amount
(In Thousands) | | Type | Buy/Sell | Maturity Date | Exchange Rate | |
| --- | --- | --- | --- | --- | --- | --- |
| US$ | 268,000 | Put | Sell | 2025.01-2026.10 | US$:RMB | 7.0000-7.4300 |
| US$ | 138,000 | Call | Sell | 2025.04-2026.10 | US$:HK$ | 7.7050-7.7250 |
| US$ | 29,000 | Put | Sell | 2025.02 | US$:IDR | 15,620 |
| US$ | 25,000 | Put | Sell | 2025.02 | US$:NT$ | 33.0000 |

The Group entered into exchange rate option contracts to manage exposures to exchange rate fluctuations of foreign currency denominated assets and liabilities.

d. At the end of the year, outstanding exchange rate swap contracts not under hedge accounting were as follows:

December 31, 2025

| Notional Amount
(In Thousands) | | Maturity Date | Rate |
| --- | --- | --- | --- |
| US$ | 151,000 | 2026.11-2026.12 | US$:NT$30.2300-30.8340 |
| RMB | 43,760 | 2026.03 | RMB:NT$ 4.2585 |

December 31, 2024

| Notional Amount
(In Thousands) | | Maturity Date | Rate |
| --- | --- | --- | --- |
| US$ | 115,700 | 2025.01-2025.06 | US$:NT$31.9390-32.6420 |
| RMB | 1,437,760 | 2025.03-2025.09 | RMB:NT$ 4.3004-4.4261 |

The Group entered into exchange rate swap contracts to manage exposures to exchange rate fluctuations of foreign currency denominated assets and liabilities.

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8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

	December 31
	2025	2024
Listed shares	$ 24,814,533	$ 24,250,266
Unlisted shares	139,275	145,296
	$ 24,953,808	$ 24,395,562
Current	$ 24,333,157	$ 23,600,478
Non-current	620,651	795,084
	$ 24,953,808	$ 24,395,562

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 Group's strategy of holding these investments for long-term purposes.

9. FINANCIAL ASSETS AT AMORTIZED COST

	December 31
	2025	2024
Bonds	$ 22,398,586	$ 12,606,035
Time deposits with original maturities of more than three months	10,656,587	12,212,728
Structured products	707,175	442,597
	$ 33,762,348	$ 25,261,360
Current	$ 6,855,031	$ 9,996,487
Non-current	26,907,317	15,264,873
	$ 33,762,348	$ 25,261,360

Please refer to Note 33 to the consolidated financial statements for information relating to investments in financial assets at amortized cost pledged as security.

10. NOTES RECEIVABLE, ACCOUNTS RECEIVABLE AND OTHER RECEIVABLES

	December 31
	2025	2024
Notes receivable
Operating	$ 6	$ 440
		(Continued)

	December 31
	2025	2024
Accounts receivable (including related parties)
At amortized cost
Gross carrying amount	$ 29,200,314	$ 31,418,047
Less: Allowance for impairment loss	(325,444)	(616,475)
	$ 28,874,870	$ 30,801,572
Other receivables
Tax refund receivables	$ 7,992,527	$ 6,251,026
Others	3,449,081	2,603,511
Less: Allowance for impairment loss	(41,959)	(20,917)
	$ 11,399,649	$ 8,833,620
		(Concluded)

a. Notes receivable

The notes receivable balances on December 31, 2025 and 2024 were not past due. The Group assessed that the expected recoverable amount is equivalent to the original recorded amount; therefore, no provision for impairment loss has been made.

b. Accounts receivable

The Group use simplified practice of IFRS 9 to measures the loss allowance for trade receivables at an amount equal to lifetime ECLs. The expected credit losses on trade receivables are estimated using a provision matrix approach considering the past default experience of the debtor and an analysis of the debtor's current financial position. As the Group's historical credit loss experience shows significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is further distinguished according to the Group's different customer base.

The Group writes off an account receivable when there is evidence indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery. For accounts receivable that have been written off, the Group continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.

1) The following table details the loss allowance of trade receivables.

December 31, 2025

	Less than 30 Days	31 to 90 Days	Over 91 Days	Total
Gross carrying amount	$ 20,242,110	$ 8,382,501	$ 575,703	$ 29,200,314
Loss allowance (lifetime ECLs)	-	(28,884)	(296,560)	(325,444)
Amortized cost	$ 20,242,110	$ 8,353,617	$ 279,143	$ 28,874,870

December 31, 2024

	Less than 30 Days	31 to 90 Days	Over 91 Days	Total
Gross carrying amount	$ 20,852,630	$ 9,947,813	$ 617,604	$ 31,418,047
Loss allowance (lifetime ECLs)	-	(1,147)	(615,328)	(616,475)
Amortized cost	$ 20,852,630	$ 9,946,666	$ 2,276	$ 30,801,572

2) The movements of the loss allowance of accounts receivable were as follows:

	For the Year Ended December 31
	2025	2024
Balance on January 1	$ 616,475	$ 762,589
Less: Reversal of impairment losses recognized on receivable	(41,499)	(177,671)
Less: Amounts written off	(231,011)	(13,671)
Foreign exchange gains and losses	(18,521)	45,228
Balance on December 31	$ 325,444	$ 616,475

3) The movements of the loss allowance of other receivable were as follows:

	For the Year Ended December 31
	2025	2024
Balance on January 1	$ 20,917	$ 21,217
Add: Impairment losses recognized (reversed) on other receivable	21,647	(1,685)
Foreign exchange gains and losses	(605)	1,385
Balance on December 31	$ 41,959	$ 20,917

11. INVENTORIES

	December 31
	2025	2024
Inventories - manufacturing and retailing	$ 43,492,960	$ 43,941,138
Inventories - construction	3,902,468	3,913,375
	$ 47,395,428	$ 47,854,513

a. Inventories - manufacturing and retailing at the end of the reporting period consisted of the following:

	December 31
	2025	2024
Raw materials	$ 7,013,867	$ 8,077,267
Work in progress	5,876,677	5,934,121
Finished goods and merchandise	30,602,416	29,929,750
	$ 43,492,960	$ 43,941,138

The cost of manufacturing and retailing inventories recognized as cost of goods sold for the years ended December 31, 2025 and 2024 were $193,271,201 thousand and $198,591,719 thousand, respectively.

b. Inventories - construction at the end of the reporting period consisted of the following:

	December 31
	2025	2024
Land and buildings held for development	$ 549,877	$ 3,778,357
Land and buildings held for sale	22,617	24,126
Land held for construction sites	3,329,974	110,892
	$ 3,902,468	$ 3,913,375

The cost of construction inventories recognized as cost of goods sold for the years ended December 31, 2025 and 2024 were $1,476 thousand and $51,059 thousand, respectively.

12. OTHER ASSETS

	December 31
	2025	2024
Prepayments	$ 9,812,510	$ 10,468,403
Refundable deposits	434,062	497,797
Defined benefit assets (Note 23)	43,754	43,754
Prepayments for equipment and long-term prepayment	1,100,533	988,136
Others	1,235,950	1,210,052
	$ 12,626,809	$ 13,208,142
Current	$ 11,010,009	$ 11,633,782
Non-current	1,616,800	1,574,360
	$ 12,626,809	$ 13,208,142

13. SUBSIDIARIES

a. Subsidiaries included in the consolidated financial statements

Name of Subsidiary	Location of Incorporation	Main Business	Proportion of Ownership (%)
December 31	2025	2024
Wealthplus Holdings Limited (“Wealthplus”)	British Virgin Islands	Investing in footwear, electronics and peripheral products	100.00
Win Fortune Investments Limited	British Virgin Islands	Investing activities	100.00
Windsor Entertainment Co., Ltd.	ROC	Entertainment and resort operations	100.00
Pou Shine Investments Co., Ltd.	ROC	Investing activities	100.00
Pan Asia Insurance Services Co., Ltd.	ROC	Agency of property and casualty insurance	100.00
Pro Arch International Development Enterprise Inc.	ROC	Design and manufacture of footwear products	100.00
Pou Yuen Technology Co., Ltd.	ROC	Rental of real estate	99.81
Barits Development Corporation	ROC	Import and export of shoe related materials and investing activities	99.62

The information of Wealthplus' major subsidiaries is as follows:

Name of Subsidiary	Location of Incorporation	Main Business	Proportion of Ownership (%)
December 31	2025	2024
Yue Yuen Industrial (Holdings) Limited (“Yue Yuen”)	Bermuda	Manufacture and sale of athletic and casual footwear and sports apparel	50.28
Pou Sheng International (Holdings) Limited (“Pou Sheng”)	Bermuda	Retail of sporting goods and wholesale business	31.45
Tetor Ventures Ltd.	British Virgin Islands	Investment holding	100.00
Allied Charm Holdings Limited	British Virgin Islands	Investment holding	100.00

Win Fortune Investments Limited ("Win Fortune") invested in Yue Yuen (as of December 31, 2025 and 2024, the ownership percentages were both 1.08%). Investing is its primary operation activity.

The information of Pou Yuen Technology Co., Ltd.'s subsidiary is as follows:

Name of Subsidiary	Location of Incorporation	Main Business	Proportion of Ownership (%)
December 31	2025	2024
Pearl Dove International Limited	British Virgin Islands	Investment holdings	100.00

The information of Barits Development Corporation's subsidiaries is as follows:

Name of Subsidiary	Location of Incorporation	Main Business	Proportion of Ownership (%)
December 31	2025	2024
Song Ming Investments Co., Ltd.	ROC	Investing activities	100.00
Pou Chin Development Co., Ltd.	ROC	Agency of land demarcation	100.00
Yue Hong Realty Development Co., Ltd.	ROC	Development of real estate	Note
Wang Yi Construction Co., Ltd.	ROC	Construction	89.75
Pou Yii Development Co., Ltd.	ROC	Rental and sale of real estate	75.00

Note: Merged with Barits Development Corporation and dissolved on September 30, 2024.

b. Details of subsidiaries that have material non-controlling interests

Name of Subsidiary	Proportion of Ownership and Voting Rights Held by Non-controlling Interests (%)
	2025	2024
Yue Yuen	48.64	48.64
Pou Sheng	37.45	37.45

Please refer to Table 7 "Information on Investees" of Note 36 to the consolidated financial statements for business location and business item of the material associates.

	Profit Allocated to Non-controlling Interests		Accumulated Non-controlling Interests
	For the Year Ended December 31		December 31
Name of Subsidiary	2025	2024	2025	2024
Yue Yuen	$ 5,717,125	$ 6,360,206	$ 67,420,024	$ 67,936,110
Pou Sheng	352,098	811,674	15,656,257	15,459,504

Pou Sheng is a subsidiary of Yue Yuen, and the summarized financial information in respect of Yue Yuen and its subsidiaries (including Pou Sheng) is set out below:

	December 31
	2025	2024
Current assets	$ 121,480,876	$ 126,055,894
Non-current assets	108,550,163	110,351,956
Current liabilities	(57,018,978)	(57,865,851)
Non-current liabilities	(18,534,302)	(22,856,292)
Equity	$ 154,477,759	$ 155,685,707
Equity attributable to:
Owners of the Company	$ 71,544,170	$ 72,104,103
Non-controlling interests of Yue Yuen	67,420,024	67,936,110
Non-controlling interests of Yue Yuen’s subsidiaries	15,513,565	15,645,494
	$ 154,477,759	$ 155,685,707
	For the Year Ended December 31
	2025	2024
Operating revenue	$ 250,507,983	$ 262,784,231
Net income	$ 12,251,390	$ 13,998,299
Other comprehensive net income (loss)	1,915,900	(763,572)
Total comprehensive net income	$ 14,167,290	$ 13,234,727
		(Continued)

42 -

	For the Year Ended December 31
	2025	2024
Net income attributable to:
Owners of the Company	$ 6,079,151	$ 6,611,667
Non-controlling interests of Yue Yuen	5,717,125	6,360,206
Non-controlling interests of Yue Yuen’s subsidiaries	455,114	1,026,426
	$ 12,251,390	$ 13,998,299
Total comprehensive net income attributable to:
Owners of the Company	$ 6,662,636	$ 6,437,764
Non-controlling interests of Yue Yuen	6,269,649	6,194,257
Non-controlling interests of Yue Yuen’s subsidiaries	1,235,005	602,706
	$ 14,167,290	$ 13,234,727
Net cash outflow from:
Operating activities	$ 12,754,781	$ 14,539,774
Investing activities	(7,467,710)	(503,849)
Financing activities	(10,603,700)	(18,706,775)
Net cash outflow	$ (5,316,629)	$ (4,670,850)
Dividends paid to:
Non-controlling interests of Yue Yuen	$ 3,983,558	$ 3,604,046
Non-controlling interests of Yue Yuen’s subsidiaries	$ 830,321	$ 409,207
		(Concluded)

14. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

	December 31
	2025	2024
Investments in associates	$ 65,541,856	$ 65,181,206
Investments in joint ventures	4,906,849	5,386,732
	$ 70,448,705	$ 70,567,938
a. Investments in associates
	December 31
	2025	2024
Material associate
Ruen Chen Investment Holding Co., Ltd.	$ 51,389,811	$ 50,690,791
Associates that are not individually material	14,152,045	14,490,415
	$ 65,541,856	$ 65,181,206

1) Material associate

	Proportion of Ownership and Voting Rights (%)
	December 31
Name of Associate	2025	2024
Ruen Chen Investment Holding Co., Ltd.	20	20

a) As of December 10, 2025 and 2024, the Company purchased 9,000 thousand and 10,000 thousand issued ordinary shares at $10 per share for $90,000 thousand and $100,000 thousand, respectively.

b) The summarized financial information below represents amounts shown in the material associate’s financial statements prepared in accordance with IFRS Accounting Standards adjusted by the Group for equity accounting purposes.

Ruen Chen Investment Holding Co., Ltd.

	December 31
	2025	2024
Assets	$ 5,614,496,301	$ 5,609,426,594
Liabilities	(5,323,193,352)	(5,321,572,377)
Non-controlling interests	(34,057,332)	(34,103,701)
Owners of Ruen Chen	$ 257,245,617	$ 253,750,516
Proportion of the Group’s interest	20%	20%
Equity attributable to the Group	$ 51,449,123	$ 50,750,103
Other adjustments	(59,312)	(59,312)
Carrying amount	$ 51,389,811	$ 50,690,791
	For the Year Ended December 31
	2025	2024
Operating revenue	$ 434,830,275	$ 491,276,768
Net income	$ 27,516,969	$ 45,499,395
Other comprehensive net loss	(24,166,970)	(25,986,605)
Total comprehensive net income	$ 3,349,999	$ 19,512,790

43 -

2) Associates that are not individually material

	Proportion of Ownership and Voting Rights (%)
	December 31
Name of Associate	2025	2024
Eagle Nice (International) Holdings Limited	33.44	33.44
San Fang Chemical Industry Co., Ltd.	40.95	40.62
Brandblack Inc.	31.25	31.25
Just Lucky Investments Limited	-	38.30
Natural Options Limited	-	38.30
Oftenrich Holdings Limited	45.00	45.00
Pou Ming Paper Products Manufacturing Co., Ltd.	20.00	20.00
Prosperlink Limited	38.00	38.00
Prosperous Industrial (Holdings) Ltd.	22.50	22.50
Rise Bloom International Limited	38.00	38.00
Venture Well Holdings Ltd.	31.55	31.55
Nan Pao Resins Chemical Co., Ltd.	13.12	14.10
Nan Shan Life Insurance Co., Ltd.	0.18	0.18

a) The Group holds less than 20% interest in Nan Pao Resins Chemical Co., Ltd. However, the Group has the power to appoint one out of the seven directors of Nan Pao Resins Chemical Co., Ltd. Therefore, the Group is able to exercise significant influence over Nan Pao Resins Chemical Co., Ltd. The Group sold part of the Company's equity in the open market for the year ended December 31, 2024 and disposed of a total of 3,772 thousand shares for $1,236,424 thousand, resulting in a gain on disposal of $758,044 thousand.

b) The Group holds less than 20% interest in Nan Shan Life Insurance Co., Ltd. However, the Group exercises significant influence over Ruen Chen Investment Holding Co., Ltd., which is the parent company of Nan Shan Life Insurance Co., Ltd. Therefore, Nan Shan Life Insurance Co., Ltd. is classified as an associate of the Group.

c) The summarized financial information below represents amounts shown in the financial statements of associates that are not individually material which were prepared in accordance with IFRS Accounting Standards adjusted by the Group for equity accounting purposes.

	For the Year Ended December 31
	2025	2024
The Group’s share of:
Net income	$ 1,701,614	$ 1,818,399
Other comprehensive net loss	(69,828)	(178,597)
Total comprehensive net income	$ 1,631,786	$ 1,639,802

3) Fair values (Level 1) of investments in associates that are not individually material with available published price quotation are summarized as follows:

Name of Associate	December 31
	2025	2024
Eagle Nice (International) Holdings Limited	$ 2,775,863	$ 3,338,256
Prosperous Industrial (Holdings) Ltd.	$ 763,265	$ 903,942
San Fang Chemical Industry Co., Ltd.	$ 5,264,609	$ 5,954,583
Nan Pao Resins Chemical Co., Ltd.	$ 4,978,486	$ 4,096,583

4) For the information of the associate's business location and business item, please refer to Table 7 Information on investees of Note 36 to the consolidated financial statements.

b. Investments in joint ventures

	December 31
	2025	2024
Joint ventures that are not individually material	$ 4,906,849	$ 5,386,732

At the end of the reporting period, the proportions of ownership and voting rights in joint ventures that are not individually material held by the Group were as follows:

Name of Joint Ventures	Proportion of Ownership and Voting Rights (%)
	December 31
	2025	2024
Cohen Enterprises Inc.	50.00	50.00
Hangzhou Baohong Sports Goods Company Limited	50.00	50.00
Hua Jian Industrial Holding Co., Limited	22.41	22.41
Jilin Xinfangwei Sports Goods Company Limited	-	50.00
Jumbo Power Enterprises Limited	50.00	50.00
Ka Yuen Rubber Factory Limited	50.00	50.00
Top Units Developments Limited	49.00	49.00
Twinways Investments Limited	50.00	50.00
Zhong Ao Multiplex Management Group Limited	46.82	46.82

1) Please refer to Table 7 "Information on Investees" of Note 36 to the consolidated financial statements for business location and business item of the ventures that are not individually material.

2) The summarized financial information below represents amounts shown in the financial statements of joint ventures that are not individually material which were prepared in accordance with IFRS Accounting Standards adjusted by the Group for equity accounting purposes:

	For the Year Ended December 31
	2025	2024
The Group’s share of:
Net income	$ 520,082	$ 782,238
Other comprehensive net income (loss)	92,098	(59,333)
Total comprehensive net income	$ 612,180	$ 722,905

15. PROPERTY, PLANT AND EQUIPMENT

	Land	Buildings and Improvements	Machinery and Equipment	Transportation Equipment	Office Equipment	Other Equipment	Construction in Progress	Total
Cost
Balance at January 1, 2024	$ 2,704,777	$ 89,037,935	$ 48,995,592	$ 1,128,113	$ 8,200,335	$ 329,329	$ 1,881,010	$ 152,277,091
Additions	-	966,261	2,086,085	57,760	1,020,427	16,050	1,791,345	5,937,928
Disposal	-	(1,660,228)	(2,092,399)	(47,486)	(344,968)	(3,607)	(1,475)	(4,152,363)
Reclassification	16,652	(23,231)	9,129	1,543	-	141	(818,330)	(814,096)
Effects of foreign currency exchange differences	-	5,283,669	3,242,136	66,228	467,567	4	127,115	9,186,719
Balance at December 31, 2024	$ 2,721,429	$ 93,604,406	$ 52,240,343	$ 1,206,158	$ 9,343,361	$ 339,917	$ 2,979,665	$ 162,435,279
Accumulated depreciation and impairment
Balance at January 1, 2024	$ (3,459)	$ (48,443,265)	$ (38,475,528)	$ (924,485)	$ (6,391,474)	$ (266,611)	$ -	$ (94,504,822)
Depreciation expenses	-	(4,290,322)	(3,404,177)	(70,500)	(1,009,776)	(24,460)	-	(8,867,235)
Disposal	-	1,479,648	2,036,649	42,263	336,131	5,389	-	3,900,080
Reclassification	-	689,329	-	-	-	-	-	889,329
Effects of foreign currency exchange differences	-	(2,936,194)	(2,614,107)	(55,570)	(379,783)	(2)	-	(5,985,456)
Balance at December 31, 2024	$ (3,459)	$ (53,308,804)	$ (42,457,163)	$ (1,008,092)	$ (7,444,902)	$ (285,684)	$ -	$ (104,508,104)
Carrying amount at December 31, 2024	$ 2,717,970	$ 40,295,602	$ 9,783,180	$ 198,066	$ 1,898,459	$ 54,233	$ 2,979,665	$ 57,927,175
Cost
Balance at January 1, 2025	$ 2,721,429	$ 93,604,406	$ 52,240,343	$ 1,206,158	$ 9,343,361	$ 339,917	$ 2,979,665	$ 162,435,279
Additions	-	1,043,679	2,607,018	103,907	2,755,402	21,349	2,256,017	8,787,372
Disposal	-	(1,547,686)	(1,799,521)	(52,207)	(467,485)	(8,707)	-	(3,875,606)
Reclassification	(1,274)	481,822	1,239,767	-	-	6,369	(3,873,424)	(2,146,740)
Effects of foreign currency exchange differences	-	(3,113,936)	(2,104,897)	(48,947)	(273,951)	(349)	(123,150)	(5,657,230)
Balance at December 31, 2025	$ 2,720,155	$ 90,468,285	$ 52,182,710	$ 1,216,911	$ 11,357,327	$ 358,579	$ 1,239,108	$ 159,543,075
Accumulated depreciation and impairment
Balance at January 1, 2025	$ (3,459)	$ (53,308,804)	$ (42,457,163)	$ (1,008,092)	$ (7,444,902)	$ (285,684)	$ -	$ (104,508,104)
Depreciation expenses	-	(4,037,373)	(3,041,203)	(56,213)	(1,251,267)	(22,179)	-	(8,408,235)
Disposal	-	1,346,073	1,694,212	47,505	432,626	8,601	-	3,529,017
Reclassification	-	2,067,245	3,486	-	-	(3,486)	-	2,067,245
Effects of foreign currency exchange differences	-	1,690,894	1,685,943	33,800	199,900	131	-	3,610,668
Balance at December 31, 2025	$ (3,459)	$ (52,241,965)	$ (42,114,725)	$ (983,000)	$ (8,063,643)	$ (302,617)	$ -	$ (103,709,409)
Carrying amount at December 31, 2025	$ 2,716,696	$ 38,226,320	$ 10,067,985	$ 233,911	$ 3,293,684	$ 55,962	$ 1,239,108	$ 55,833,666

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

Items	Estimated Useful Life
Buildings and improvements
Main buildings	20-55 years
Elevators	15 years
Machinery and equipment	5-12 years
Transportation equipment	5 years
Office equipment	3-7 years
Other equipment	3-10 years

b. The Group has land with a carrying amount of $56,102 thousand. Due to certain restrictions under the land regulations, ownership of the land has been temporarily transferred to a trustee through a trust agreement, which prohibits the trustee from selling, pledging or hypothecating the property.

16. LEASE ARRANGEMENTS

a. Right-of-use assets

	December 31
	2025	2024
Carrying amount
Land	$ 8,340,454	$ 9,191,264
Buildings and improvements	5,029,712	6,323,738
Machinery and equipment	54,591	15,911
Transportation equipment	3,240	4,051
Other equipment	1,290	2,542
	$ 13,429,287	$ 15,537,506
	For the Year Ended December 31
	2025	2024
Additions to right-of-use assets	$ 2,973,551	$ 2,972,771
Depreciation charge for right-of-use assets
Land	$ 235,378	$ 255,535
Buildings and improvements	2,878,449	3,445,951
Machinery and equipment	2,915	842
Transportation equipment	3,183	3,116
Other equipment	1,252	1,150
	$ 3,121,177	$ 3,706,594

b. Lease liabilities

	December 31
	2025	2024
Carrying amount
Current	$ 2,271,033	$ 2,486,327
Non-current	3,612,087	4,530,772
	$ 5,883,120	$ 7,017,099

Range of discount rates for lease liabilities was as follows:

	December 31
	2025	2024
Land	1.10%-6.00%	1.10%-7.47%
Buildings and improvements	1.16%-10.75%	1.10%-10.75%
Machinery and equipment	5.11%-5.59%	5.59%
Transportation equipment	3.70%-7.00%	3.70%-4.25%
Other equipment	1.25%-2.10%	1.25%-2.10%

c. Other lease information

	For the Year Ended December 31
	2025	2024
Expenses relating to short-term leases	$ 352,470	$ 442,995
Expenses relating to low-value asset leases	$ 3,583	$ 4,093
Expenses relating to variable lease payments not included in the measurement of lease liabilities	$ 3,804,231	$ 4,368,087
Total cash outflow for leases	$ 7,373,238	$ 8,568,675

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

INVESTMENT PROPERTIES

	Rights of Land	Land	Buildings	Total
Cost
Balance on January 1, 2024	$ 503,224	$ 1,928,968	$ 5,026,415	$ 7,458,607
Disposals	(9,412)	-	(216,758)	(226,170)
Reclassification	81,077	(74,688)	436,168	442,557
Effects of foreign currency exchange differences	23,732	-	308,829	332,561
Balance on December 31, 2024	$ 598,621	$ 1,854,280	$ 5,554,654	$ 8,007,555
Accumulated depreciation and impairment
Balance on January 1, 2024	$ (13,234)	$ -	$ (1,410,420)	$ (1,423,654)
Depreciation expenses	(20,103)	-	(143,008)	(163,111)
Disposal	614	-	37,683	38,297
Reclassification	1,738	-	8,057	9,795
Effects of foreign currency exchange differences	(1,308)	-	(91,544)	(92,852)
Balance on December 31, 2024	$ (32,293)	$ -	$ (1,599,232)	$ (1,631,525)
Carrying amount on December 31, 2024	$ 566,328	$ 1,854,280	$ 3,955,422	$ 6,376,030
Cost
Balance on January 1, 2025	$ 598,621	$ 1,854,280	$ 5,554,654	$ 8,007,555
Additions	-	-	593	593
Reclassification	508,030	11,176	1,324,303	1,843,509
Effects of foreign currency exchange differences	(9,663)	-	(200,923)	(210,586)
Balance on December 31, 2025	$ 1,096,988	$ 1,865,456	$ 6,678,627	$ 9,641,071

(Continued)

49 -

	Rights of Land	Land	Buildings	Total
Accumulated depreciation
and impairment
Balance on January 1, 2025	$ (32,293)	$ -	$ (1,599,232)	$ (1,631,525)
Depreciation expenses	(27,908)	-	(195,098)	(223,006)
Reclassification	(51,350)	-	73	(51,277)
Effects of foreign currency
exchange differences	715	-	59,230	59,945
Balance on December 31, 2025	$ (110,836)	$ -	$ (1,735,027)	$ (1,845,863)
Carrying amount on
December 31, 2025	$ 986,152	$ 1,865,456	$ 4,943,600	$ 7,795,208
(Concluded)

a. The investment properties are depreciated using the straight-line method over 30-55 years.

b. The fair value of investment properties is comprehensively evaluated by the management of the Group, who use the evaluation model adopted by the market review and independent evaluators. The fair value of the Group’s investment properties as of December 31, 2025 and 2024 was $17,904,533 thousand and $15,908,515 thousand, respectively.

c. The maturity analysis of lease payments receivable under operating leases of investment properties at December 31, 2025 and 2024 was as follows:

	December 31
	2025	2024
Year 1	$ 849,264	$ 1,174,299
Year 2	765,929	1,029,202
Year 3	513,350	788,775
Year 4	362,781	533,795
Year 5	343,894	320,301
Year 6 onwards	1,731,604	1,220,833
	$ 4,566,822	$ 5,067,205

18. GOODWILL

	2025	2024
Cost
Balance on January 1	$ 9,205,200	$ 8,667,563
Effects of foreign currency exchange differences	(280,949)	537,637
Balance on December 31	$ 8,924,251	$ 9,205,200
		(Continued)

	2025	2024
Accumulated impairment
Balance on January 1	$ (307,318)	$ (288,167)
Effects of foreign currency exchange differences	17,942	(19,151)
Balance on December 31	$ (289,376)	$ (307,318)
Carrying amount on December 31	$ 8,634,875	$ 8,897,882
		(Concluded)

The carrying value of goodwill allocated to four cash-generating units was as follows:

	December 31
	2025	2024
Goodwill
Manufacturing and marketing of footwear materials	$ 5,763,916	$ 6,012,408
Manufacturing and marketing of sports apparel	10,875	11,344
Retailing business - retail and distribution of sportswear products	2,392,483	2,374,060
Others	467,601	500,070
	$ 8,634,875	$ 8,897,882

The Group has evaluated the recoverable amount of these cash-generating units for the years ended December 31, 2025 and 2024, and the recoverable amount of these cash-generating units was determined based on the value in use. The value in use was calculated based on used cash flow forecasts of the financial budgets approved by the management covering a five-year period. The growth rates were based on the forecasts of the relevant industries.

The discount rates and growth rates used in the value calculations for these cash-generating units were as follows:

	December 31
	2025		2024
	Discount Rate	Growth Rate	Discount Rate	Growth Rate
Manufacturing and marketing of footwear materials	17%-20%	2%	18%-20%	2%
Manufacturing and marketing of sports apparel	17%-20%	1%	18%-20%	1%
Retailing business - retail and distribution of sportswear products	17%-20%	2%	18%-20%	2%

Other key assumptions for calculating the evaluated value in use included a sales budget, gross margins and other related cash inflow and outflow patterns. The evaluated amount was based on these cash-generating units' historical performance and the management's expectation of the market development.

19. OTHER INTANGIBLE ASSETS

	Patents	Trademarks	Computer Software	Brand Names	Licensing Agreements	Non-compete Agreements	Total
Cost
Balance on January 1, 2024	$ 373	$ 98	$ 2,102,329	$ 2,013,235	$ 160,771	$ 682,972	$ 4,959,778
Additions	-	-	212,336	-	-	-	212,336
Disposals	-	-	-	-	-	(42,916)	(42,916)
Effect of foreign currency exchange differences	-	-	6,403	75,071	6,006	26,234	113,714
Balance on December 31, 2024	$ 373	$ 98	$ 2,321,068	$ 2,088,306	$ 166,777	$ 666,290	$ 5,242,912
Accumulated amortization and impairment
Balance on January 1, 2024	$ (62)	$ (33)	$ (304,261)	$ (2,013,235)	$ (160,771)	$ (455,724)	$ (2,934,086)
Amortization expenses	(24)	(10)	(125,960)	-	-	(29,190)	(155,184)
Disposals	-	-	-	-	-	42,916	42,916
Effect of foreign currency exchange differences	-	-	(498)	(75,071)	(6,006)	(17,845)	(99,420)
Balance on December 31, 2024	$ (86)	$ (43)	$ (430,719)	$ (2,088,306)	$ (166,777)	$ (459,843)	$ (3,145,774)
Carrying amount on December 31, 2024	$ 287	$ 55	$ 1,890,349	$ -	$ -	$ 206,447	$ 2,097,138
Cost
Balance on January 1, 2025	$ 373	$ 98	$ 2,321,068	$ 2,088,306	$ 166,777	$ 666,290	$ 5,242,912
Additions	-	-	177,060	-	-	-	177,060
Disposals	-	-	(152)	-	-	-	(152)
Effect of foreign currency exchange differences	-	-	7,242	18,007	1,436	5,715	32,400
Balance on December 31, 2025	$ 373	$ 98	$ 2,505,218	$ 2,106,313	$ 168,213	$ 672,005	$ 5,452,220
Accumulated amortization and impairment
Balance on January 1, 2025	$ (86)	$ (43)	$ (430,719)	$ (2,088,306)	$ (166,777)	$ (459,843)	$ (3,145,774)
Amortization expenses	(23)	(10)	(140,316)	-	-	(28,430)	(168,779)
Disposals	-	-	152	-	-	-	152
Effect of foreign currency exchange differences	-	-	(1,121)	(18,007)	(1,436)	(5,053)	(25,617)
Balance on December 31, 2025	$ (109)	$ (53)	$ (572,004)	$ (2,106,313)	$ (168,213)	$ (493,326)	$ (3,340,018)
Carrying amount on December 31, 2025	$ 264	$ 45	$ 1,933,214	$ -	$ -	$ 178,679	$ 2,112,202

The abovementioned items of other intangible assets are amortized on a straight-line basis over their estimated useful life as follows:

Items	Estimated Useful Life
Patents	10-20 years
Trademarks	10 years
Computer software	3-20 years
Brand names	5 years
Licensing agreements	10 years
Non-compete agreements	5-20 years

52 -

20. BORROWINGS

a. Short-term borrowings

	December 31
	2025	2024
Unsecured borrowings
Credit borrowings	$ 30,119,239	$ 25,311,935

The range of effective interest rates on bank borrowings was 1.28%-4.60% and 1.68%-5.25% per annum as of December 31, 2025 and 2024, respectively.

b. Short-term bills payable

At the end of the reporting period, outstanding short-term bills payable were as follows:

December 31, 2025

	Properties	Annual Interest Rate	Amount
Commercial papers	Unsecured	1.50%-1.81%	$ 4,471,000
Less: Unamortized discount on bills payable			(2,478)
			$ 4,468,522
December 31, 2024
	Properties	Annual Interest Rate	Amount
Commercial papers	Unsecured	1.61%-1.89%	$ 1,968,500
Less: Unamortized discount on bills payable			(967)
			$ 1,967,533

c. Long-term borrowings

	December 31
	2025	2024
Unsecured borrowings
Bank loans	$ 35,132,062	$ 37,896,622
Long-term bills payable	8,393,264	2,850,000
Less: Expenses for long-term borrowings	(15,097)	(10,622)
Less: Current portion	(6,063,703)	(7,298,520)
	$ 37,446,526	$ 33,437,480

Maturity dates and ranges of annual interest rates:

	December 31
	2025	2024
Maturity date
Long-term borrowings	2027.01.19-2029.03.12	2026.01.03-2029.03.12
Current portion of long-term borrowings	2026.01.15-2026.12.30	2025.01.15-2025.12.03
Range of interest rate	1.75%-4.68%	1.75%-5.43%

The Group's commercial paper will be due in 12 months after issuance. At the end of the reporting period, the Group did not have the right to defer settlement of the liability for at least 12 months after that date. In accordance with the Q&A issued by the Accounting Research and Development Foundation, the commercial papers shall be classified as current liabilities. In accordance with the Q&A issued by the FSC, the Group applies the above classification requirement to commercial paper issued on or after December 31, 2025. Commercial paper issued before December 31, 2025 continues to be classified as non-current liabilities.

21. NOTES PAYABLE AND ACCOUNTS PAYABLE

	December 31
	2025	2024
Notes payable
Operating	$ 692	$ 661
Non-operating	301	543
	$ 993	$ 1,204
Accounts payable (including related parties)	$ 14,150,937	$ 15,832,281

The Group has financial risk management policies in place to ensure that all payables are paid within the pre-agreed credit terms.

22. OTHER PAYABLES

	December 31
	2025	2024
Payables for salaries	$ 10,396,533	$ 10,701,740
Payables for purchase of property, plant and equipment	1,849,264	1,338,844
Compensation due to directors	147,525	186,137
Compensation of employees	318,108	522,473
Interest payables	200,212	197,087
Payables for annual leave	1,174,595	1,103,344
Others	5,931,487	6,259,700
	$ 20,017,724	$ 20,309,325
		(Continued)

54 -

	December 31
	2025	2024
Current	$ 19,842,910	$ 20,135,874
Non-current	174,814	173,451
	$ 20,017,724	$ 20,309,325
		(Concluded)

23. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

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

b. Defined benefit plans - Yue Yuen and its subsidiaries - Indonesia

The net amounts in respect of the defined benefit liabilities were $2,630,125 thousand and $2,631,389 thousand as of December 31, 2025 and 2024, respectively. Movements in the net defined benefit liabilities were as follows:

Present Value of Defined Benefit Obligation	For the Year Ended December 31
	2025	2024
Balance at January 1	$ 2,631,389	$ 2,888,757
Current service cost	234,598	226,229
Past service cost	29,715	15,285
Net interest expense	156,617	189,942
Others	(284)	(1,006)
Recognized in profit or loss	420,646	430,450
Remeasurement
Actuarial loss (gain) arising from changes in financial assumptions	9,900	(459,121)
Actuarial loss (gain) arising from experience adjustments	13,672	(28,130)
Effect of exchange rate changes of remeasurement	(18,858)	(44,424)
Recognized in other comprehensive (income) loss	4,714	(531,675)
Benefits paid	(248,068)	(258,277)
Effect of exchange rate changes on foreign plans	(178,556)	102,134
Balance at December 31	$ 2,630,125	$ 2,631,389

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 are as follows:

	December 31
	2025	2024
Discount rate	6.70%-7.10%	7.10%-7.14%
Expected rate of salary increase	3.00%-4.00%	2.00%-4.00%

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

	December 31
	2025	2024
Discount rate
0.25% increase	$ (21,101)	$ (37,491)
0.25% decrease	$ 24,765	$ 42,436
Expected rate of salary increase
0.25% increase	$ 26,978	$ 43,889
0.25% decrease	$ (23,151)	$ (39,337)

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

	December 31
	2025	2024
Expected contributions to the plans for the next year	$ 58,460	$ 85,536
Average duration of the defined benefit obligation	16.5-32.7 years	14.7-31.8 years

c. Defined benefit plans - Yue Yuen and its subsidiaries in the ROC

The defined benefit plan adopted by domestic subsidiaries of Yue Yuen in accordance with the Labor Standards Act 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 Group contributes amounts equal to $2\%$ 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 Group 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 Group 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 Group has no right to influence the investment policy and strategy.

The net amounts included in the consolidated balance sheets in respect of the Group's defined benefit liabilities and fair value of plan assets are as follows:

	December 31
	2025	2024
Present value of defined benefit obligation	$ 620,805	$ 631,537
Fair value of plan assets	(556,311)	(518,330)
Net defined benefit liabilities	$ 64,494	$ 113,207

Movements in net defined benefit liabilities (assets) were as follows:

	Present Value of Defined Benefit Obligation	Fair Value of Plan Assets	Net Defined Benefit Liabilities
Balance on January 1, 2024	$ 607,283	$ (375,767)	$ 231,516
Current service cost	963	-	963
Net interest expense (income)	7,482	(4,656)	2,826
Others	(32)	-	(32)
Recognized in profit or loss	8,413	(4,656)	3,757
Remeasurement
Return on plan assets (excluding amounts included in net interest)	-	(39,998)	(39,998)
Actuarial gain arising from changes in financial assumptions	(459)	-	(459)
Actuarial loss arising from experience adjustments	25,572	-	25,572
Recognized in other comprehensive loss (income)	25,113	(39,998)	(14,885)
Contributions from the employer	-	(112,039)	(112,039)
Benefits paid	(45,214)	45,214	-
Others	35,942	(31,084)	4,858
Balance on December 31, 2024	$ 631,537	$ (518,330)	$ 113,207
Balance on January 1, 2025	$ 631,537	$ (518,330)	$ 113,207
Current service cost	686	-	686
Net interest expense (income)	8,886	(7,327)	1,559
Others	10,227	-	10,227
Recognized in profit or loss	19,799	(7,327)	12,472
Remeasurement
Return on plan assets (excluding amounts included in net interest)	-	(34,290)	(34,290)
Actuarial loss arising from changes in financial assumptions	11,692	-	11,692
Actuarial loss arising from experience adjustments	23,730	-	23,730
Recognized in other comprehensive loss (income)	35,422	(34,290)	1,132
Contributions from the employer	-	(56,966)	(56,966)
Benefits paid	(44,587)	44,587	-
Others	(21,366)	16,015	(5,351)
Balance on December 31, 2025	$ 620,805	$ (556,311)	$ 64,494

Through the defined benefit plans under the Labor Standards Act, the Group 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 shall not be below the interest rate for a 2-year time deposit with local banks.

2) Interest risk: A decrease in the government 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 plans' debt investments.

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

	December 31
	2025	2024
Discount rate	1.25%	1.5%
Expected rate of salary increase	2.50%-3.25%	2.50%-3.25%

	December 31
	2025	2024
Discount rate
0.25% increase	$ (11,100)	$ (11,753)
0.25% decrease	$ 11,443	$ 12,138
Expected rate of salary increase
0.25% increase	$ 11,100	$ 11,785
0.25% decrease	$ (10,819)	$ (11,496)

	December 31
	2025	2024
The expected contributions to the plan for the next year	$ 74,552	$ 32,129
The average duration of the defined benefit obligation	6.9-10.8 years	7.6-10.8 years

d. Defined benefit plans - domestic subsidiaries

The defined benefit plan adopted by the Group (excluding Yue Yuen and its subsidiaries) in accordance with the Labor Standards Act 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 Group contributes amounts equal to 2% 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 Group 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 Group 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 Group has no right to influence the investment policy and strategy.

57 -

The amounts included in the consolidated balance sheets in respect of the Group's defined benefit liabilities (assets) under the Labor Standards Act (excluding Yue Yuen and its subsidiaries) are as follows:

	December 31
	2025	2024
Defined benefit liabilities	$ 104,040	$ 138,006
Less: Defined benefit assets (Note 12)	(43,754)	(43,754)
	$ 60,286	$ 94,252

The net amounts included in the consolidated balance sheets in respect of the Group's defined benefit liabilities and fair value of plan assets are as follows:

	December 31
	2025	2024
Present value of defined benefit obligation	$ 1,216,765	$ 1,234,129
Fair value of plan assets	(1,156,479)	(1,139,877)
Net defined benefit liabilities	$ 60,286	$ 94,252

Movements in net defined benefit liabilities (assets) were as follows:

	Present Value of Defined Benefit Obligation	Fair Value of Plan Assets	Net Defined Benefit Liabilities
Balance on January 1, 2024	$ 1,244,475	$ (1,024,383)	$ 220,092
Current service cost	4,674	-	4,674
Past service cost	(98)	-	(98)
Net interest expense (income)	15,489	(12,291)	3,198
Recognized in profit or loss	20,065	(12,291)	7,774
Remeasurement
Return on plan assets (excluding amounts included in net interest)	-	(89,918)	(89,918)
Actuarial gain arising from changes in financial assumptions	(1,077)	-	(1,077)
Actuarial loss arising from experience adjustments	25,715	-	25,715
Recognized in other comprehensive loss (income)	24,638	(89,918)	(65,280)
Contributions from the employer	-	(68,406)	(68,406)
Benefits paid	(55,121)	55,121	-
Others	72	-	72
Balance on December 31, 2024	$ 1,234,129	$ (1,139,877)	$ 94,252 (Continued)

59 -

	Present Value of Defined Benefit Obligation	Fair Value of Plan Assets	Net Defined Benefit Liabilities
Balance on January 1, 2025	$ 1,234,129	$ (1,139,877)	$ 94,252
Current service cost	3,411	-	3,411
Past service cost	(69)	-	(69)
Net interest expense (income)	18,430	(16,481)	1,949
Recognized in profit or loss	21,772	(16,481)	5,291
Remeasurement
Return on plan assets (excluding amounts included in net interest)	-	(76,541)	(76,541)
Actuarial loss arising from changes in financial assumptions	27,932	-	27,932
Actuarial loss arising from experience adjustments	38,056	-	38,056
Recognized in other comprehensive loss (income)	65,988	(76,541)	(10,553)
Contributions from the employer	-	(18,477)	(18,477)
Benefits paid	(94,897)	94,897	-
Others	(10,227)	-	(10,227)
Balance on December 31, 2025	$ 1,216,765	$ (1,156,479)	$ 60,286

An analysis by function of the amounts recognized in profit or loss in respect of the defined benefit plans is as follows:

	For the Year Ended December 31
	2025	2024
Operating costs	$ 26	$ 40
Selling and marketing expenses	5	6
General and administrative expenses	2,961	4,415
Research and development expenses	2,299	3,313
	$ 5,291	$ 7,774

Through the defined benefit plans under the Labor Standards Act, the Group is exposed to the following risks:

	December 31
	2025	2024
Discount rate	1.25%	1.50%
Expected rate of salary increase	2.25%-2.50%	2.00%-2.50%

	December 31
	2025	2024
Discount rate
0.25% increase	$(27,841)	$(28,855)
0.25% decrease	$28,785	$29,864
Expected rate of salary increase
0.25% increase	$27,946	$29,047
0.25% decrease	$(27,172)	$(28,212)

	December 31
	2025	2024
The expected contributions to the plan for the next year	$15,722	$16,187
The average duration of the defined benefit obligation	7.8-9.4 years	7.4-9.6 years

24. EQUITY

a. Share capital

Ordinary shares

	December 31
	2025	2024
Number of shares authorized (in thousands)	4,500,000	4,500,000
Amount of shares authorized	$45,000,000	$45,000,000
Number of shares issued and fully paid (in thousands)	2,946,787	2,946,787
Amount of shares issued	$29,467,872	$29,467,872

b. Capital surplus

	December 31
	2025	2024
May be used to offset a deficit, distributed as cash dividends, or transferred to share capital (Note 1)
Recognized from issuance of ordinary shares	$ 848,603	$ 848,603
Recognized from conversion of bonds	1,447,492	1,447,492
Recognized from treasury share transactions	1,824,608	1,824,608
Recognized from the excess of the consideration received over the carrying amount of the subsidiaries’ net assets during actual disposal or acquisition	117,231	117,231
May only be used to offset a deficit
Recognized from the changes in ownership to subsidiaries (Note 2)	133,651	124,266
Recognized from the share of changes in net assets of associates and joint ventures	121,958	121,958
Others	33,675	32,472
	$ 4,527,218	$ 4,516,630

Note 1: Such capital surplus may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of the Company’s capital surplus and once a year).

Note 2: Such capital surplus are the changes in equity transactions recognized from the equity changes of subsidiaries when the Company does not actually receive or dispose of subsidiaries’ shares.

c. Retained earnings and dividend policy

Under the dividend policy of the Articles, the Company should make appropriations from the annual net profit in the following order:

1) For paying taxes.

2) For offsetting deficits.

3) For the legal reserve at 10% of the remaining profit, and for the special reserve to be appropriated and distributed according to regulations or upon request by the FSC.

4) The total of any remaining profit after the appropriations mentioned above plus any accumulated unappropriated earnings from prior years may be partially retained and then the remainder distributed as proposed according to the share ownership proportion.

The board of directors proposes an earnings distribution in the form of new shares shall be approved following the resolution of the shareholders' meetings. Distribution of dividends and bonuses or distribution of the legal reserve and capital surplus in whole or in part by cash shall be resolved by a majority vote at a meeting attended by more than two thirds of the total number of directors, and such distribution shall be reported at the shareholders' meeting.

For information about the accrual basis of the compensation of employees and remuneration of directors and supervisors and the actual appropriations, please refer to Note 26 (h) to the consolidated financial statements.

In accordance with the "Articles", profit may be distributed after taking into consideration the future development plan, financial condition, business and operational status, and so on. The distribution of profit shall be proposed by the board of directors, and submitted to the shareholders' meeting for approval. The ratio of distribution shall be no less than 30% of the net profit for each fiscal year, and the proportion of cash dividends distributed shall be no less than 30% of total dividends distributed. If there are material changes in the operating environment, the Company can adjust the ratio and amounts of distribution of profit.

Appropriation of earnings to the legal reserve shall be made until the legal reserve equals the Company's paid-in capital. Legal reserve may be used to offset deficit. If the Company has no deficit and the legal reserve has exceeded 25% of the Company's paid-in capital, the excess may be transferred to capital or distributed in cash.

The appropriations of earnings for 2024 and 2023 were as follows:

	Appropriation of Earnings
	For the Year Ended December 31
	2024	2023
Legal reserve	$ 1,637,834	$ 1,043,304
Special reserve	$ 3,106,972	$ (2,528,881)
Cash dividends	$ 5,009,538	$ 3,241,466
Dividends per share (NT$)	$ 1.70	$ 1.10

The above 2024 and 2023 appropriations for cash dividends were resolved by the Company's board of directors on April 17, 2025 and April 15, 2024, respectively; the other proposed appropriations were resolved by the shareholders at their meeting on May 29, 2025 and May 31, 2024.

d. Special reserve

	For the Year Ended December 31
	2025	2024
Balance on January 1	$ 55,117,885	$ 57,646,766
(Reversals) appropriations in respect of
Change in the fair value of the financial assets reclassified	4,869,687	10,056,342
Reversal of the debits to other equity items	(1,762,715)	(12,585,223)
Balance on December 31	$ 58,224,857	$ 55,117,885

The Group’s associate, Nan Shan Life Insurance Co., Ltd., is an insurance company, and on October 1, 2022, Nan Shan Life Insurance Co., Ltd. reclassified the financial assets at fair value through other comprehensive income to financial assets at amortized cost. In accordance with Rule No. 11104942741 issued by the Insurance Bureau of the FSC, Nan Shan Life Insurance Co., Ltd. shall appropriate its earnings as a special reserve. When distributing the distributable retained earnings, the Group shall appropriate as a special reserve with the amount of changes in the fair value of the financial assets reclassified by Nan Shan Life Insurance Co., Ltd. based on the Group’s shareholding percentage of Nan Shan Life Insurance Co., Ltd. If there is a reversal in the changes in the fair value of the financial assets reclassified by Nan Shan Life Insurance Co., Ltd. subsequently, the appropriated special reserve may be reversed based on the Group’s shareholding percentage of Nan Shan Life Insurance Co., Ltd. and is thereafter distributed. The balance of the special reserve appropriated or reversed by the Group shall not exceed the carrying amount of the Group’s investment in Nan Shan Life Insurance Co., Ltd. Therefore, the Company appropriated a special reserve of $4,869,687 thousand and $10,056,342 thousand, respectively, in accordance with the above provision. The Company reversed and appropriated a special reserve of $1,762,715 thousand and $12,585,223 thousand, respectively, due to debits to other equity items. A total special reserve of $3,106,972 thousand and $(2,528,881) thousand, respectively, were resolved by the shareholders in their meeting on May 29, 2025 and May 31, 2024.

e. Other equity item

1) Exchange differences on the translation of the financial statements of foreign operations

	For the Year Ended December 31
	2025	2024
Balance on January 1	$ 5,267,610	$ (741,919)
Exchange differences on translation of the financial statements of foreign operations	(3,749,126)	6,051,918
Share of exchange differences of associates and joint ventures accounted for using the equity method	76,306	(42,389)
Balance on December 31	$ 1,594,790	$ 5,267,610

2) Unrealized gain or loss on financial assets at FVTOCI

	For the Year Ended December 31
	2025	2024
Balance on January 1	$ 650,057	$ 2,433,063
Unrealized gain from equity instruments	692,527	517,204
Cumulative unrealized gain (loss) on equity instruments transferred to retained earnings due to disposal	1,762	(6,709)
Disposal of associates accounted for using the equity method	(7,944)	(33,666)
Share of gain (loss) from associates and joint ventures accounted for using the equity method	2,881,683	(2,259,835)
Balance on December 31	$ 4,218,085	$ 650,057

3) Others

	For the Year Ended December 31
	2025	2024
Balance on January 1	$ (12,893,323)	$ (10,429,515)
Share of loss from associates and joint ventures accounted for using the equity method	(7,260,582)	(2,463,808)
Balance on December 31	$ (20,153,905)	$ (12,893,323)

f. Non-controlling interests

	For the Year Ended December 31
	2025	2024
Balance on January 1	$ 83,948,092	$ 76,473,917
Share of non-controlling interests
Net profit	6,184,092	7,400,311
Exchange differences on translation of the financial statements of foreign operations	(1,934,671)	4,469,799
Unrealized (loss) gain on financial assets at FVTOCI	(112,572)	39,333
Remeasurement of defined benefit plans	(4,926)	204,903
Others	(141)	(48)
Changes in non-controlling interests	(4,776,424)	(4,640,123)
Balance on December 31	$ 83,303,450	$ 83,948,092

REVENUE

	For the Year Ended December 31
	2025	2024
Sales revenue	$ 250,496,031	$ 262,950,772
Revenue from entertainment and resort	624,708	583,678
Others revenue	279,470	283,377
	$ 251,400,209	$ 263,817,827

NET PROFIT FROM CONTINUING OPERATIONS

a. Interest income

	For the Year Ended December 31
	2025	2024
Cash in bank	$ 989,156	$ 1,595,554
Repurchase agreements collateralized by bonds	1,789	482
Financial assets at amortized cost	953,397	506,505
Others	879	504
	$ 1,945,221	$ 2,103,045

b. Other income

	For the Year Ended December 31
	2025	2024
Rental income from operating lease	$ 1,040,449	$ 907,138
Dividend income	1,004,441	897,935
Others	1,043,763	1,419,703
	$ 3,088,653	$ 3,224,776

c. Other gains and losses

	For the Year Ended December 31
	2025	2024
Net (loss) gain on disposal of property, plant and equipment	$ (74,012)	$ 45,516
Net loss on disposal of investment properties	-	(15,752)
Net foreign exchange gain	420,728	304,801
Net gain on disposal of associates	420,927	1,007,444
Net gain on financial assets at FVTPL	329,227	423,917
Impairment loss of assets	(97,696)	(206,391)
(Loss) gain on modification of lease	(1,104)	301,452
Others	(102,304)	(760,721)
	$ 895,766	$ 1,100,266

d. Finance costs

	For the Year Ended December 31
	2025	2024
Interest on bank borrowings	$ 2,157,273	$ 2,398,976
Interest on short-term bills payable	119,101	88,472
Lease liabilities	259,855	317,010
Other interest expense	129	131
	$ 2,536,358	$ 2,804,589

e. Depreciation and amortization

	For the Year Ended December 31
	2025	2024
Property, plant and equipment	$ 8,408,235	$ 8,807,235
Right-of-use assets	3,121,177	3,706,594
Investment properties	223,006	163,111
Other intangible assets	168,779	155,184
	$ 11,921,197	$ 12,832,124
		(Continued)

66 -

	For the Year Ended December 31
	2025	2024
An analysis of depreciation by function
Operating costs	$ 5,659,114	$ 5,658,825
Operating expenses	5,884,886	6,869,309
Non-operating expenses	208,418	148,806
	$ 11,752,418	$ 12,676,940
An analysis of amortization by function
Operating expenses	$ 168,779	$ 155,184
		(Concluded)

f. Direct operating expenses from investment properties

	For the Year Ended December 31
	2025	2024
Generated rental income	$ 54,902	$ 52,232

g. Employee benefits expense

	For the Year Ended December 31
	2025	2024
Short-term benefits	$ 61,245,525	$ 61,074,466
Post-employment benefits
Defined contribution plans	6,877,548	6,863,606
Defined benefit plans	438,409	441,981
	7,315,957	7,305,587
Share-based payments
Equity-settled	94,245	106,704
Termination benefits	29,469	9,805
	$ 68,685,196	$ 68,496,562
An analysis of employee benefits expense by function
Operating costs	$ 47,867,489	$ 47,321,958
Operating expenses	20,817,707	21,174,604
	$ 68,685,196	$ 68,496,562

h. Compensation of employees and remuneration of directors

According to the Company's Articles, the Company shall distribute compensation of employees and remuneration of directors at rates of $1\% - 5\%$ and no higher than $3\%$, respectively, of income before income tax, compensation of employees, and remuneration of directors. In accordance with the amendments to the Securities and Exchange Act in August 2024, the shareholders of the Company resolved the amendments to the Company's Articles at their 2025 regular meeting. The amendments explicitly stipulate the allocation of no less than $10\%$ of the allocated amount as compensation distributions for non-executive employees. In the case of an accumulated loss, the Company shall allocate an amount to recover such loss before appropriating any compensation of employees and remuneration of directors.

The compensation of employees (including non-executive employees) and remuneration of directors for the years ended December 31, 2025 and 2024 which were approved by the Company's board of directors on March 12, 2026 and March 12, 2025, respectively, are as follows:

Accrual rate

	For the Year Ended December 31
	2025	2024
Compensation of employees	1.6%	1.6%
Remuneration of directors	0.8%	0.8%

Amount

	For the Year Ended December 31
	2025		2024
	Cash	Shares	Cash	Shares
Compensation of employees	$ 223,767	$ -	$ 285,984	$ -
Remuneration of directors	111,883	-	142,992	-

If there is a change in the amounts after the annual consolidated financial statements were authorized for issue, the differences are recorded as a change in the accounting estimate and will be adjusted in the following year.

There was no difference between the actual amounts of compensation of employees and remuneration of directors paid and the amounts recognized in the consolidated financial statements for the years ended December 31, 2024 and 2023.

Information on compensation of employees and remuneration of directors resolved by the Company's board of directors is available at the Market Observation Post System website of the Taiwan Stock Exchange.

27. INCOME TAXES

a. Income tax recognized in profit or loss

The major components of tax expense were as follows:

	For the Year Ended December 31
	2025	2024
Current tax
In respect of the current period	$ 3,840,194	$ 4,898,185
Pillar Two supplemental tax	125,094	-
Income tax expense of unappropriated earnings	328,989	430,287
Land value increment tax	53	768
Income tax with Repatriated Offshore Funds Act	(8,667)	-
Adjustments for prior year’s income tax	(624,978)	880,061
	3,660,685	6,209,301
Deferred tax
In respect of the current period	156,859	80,531
Income tax expense recognized in profit or loss	$ 3,817,544	$ 6,289,832

A reconciliation of accounting profit and income tax expense recognized in profit or loss was as follows:

	For the Year Ended December 31
	2025	2024
Income before income tax	$ 22,069,883	$ 29,725,734
Income tax expense calculated at the statutory rate	$ 4,413,976	$ 5,945,147
Tax effect of adjusting items
Tax-exempt income	(188,518)	(180,916)
Investment income recognized under equity method	(1,428,259)	(2,031,687)
Others	1,324,893	1,245,975
Additional income tax under the Alternative Minimum Tax Act	55	197
Income tax on unappropriated earnings	328,989	430,287
Income tax with Repatriated Offshore Funds Act	(8,667)	-
Land value increment tax	53	768
Adjustments for prior years’ income tax	(624,978)	880,061
Income tax expense recognized in profit or loss	$ 3,817,544	$ 6,289,832

As the status of 2026 shareholders' meeting regarding the appropriations of earnings is uncertain, the potential income tax consequences of 2025 unappropriated earnings are not reliably determinable.

b. Income tax recognized in other comprehensive income

	For the Year Ended December 31
	2025	2024
Deferred tax
In respect of the current year	$ 8,629	$ 106,672
Total income tax recognized in other comprehensive income or loss	$ 8,629	$ 106,672

c. Deferred tax assets and liabilities

	December 31
	2025	2024
Deferred tax assets
Temporary differences
Others	$ 4,513,608	$ 4,982,093
Deferred tax liabilities
Temporary differences
Land value increment tax	$ 86,547	$ 86,547
Others	2,038,653	2,350,226
	$ 2,125,200	$ 2,436,773

d. Income tax assessments

All of the Company’s income tax returns through 2023, except 2022, have been assessed and approved by the tax authorities.

e. Pillar Two Income Tax Legislation

The government of Vietnam enacted the Pillar Two income tax legislation effective from January 1, 2024. In addition, the governments of Hong Kong, Indonesia, Singapore, and Brazil have successively enacted Pillar Two legislation, which became effective from January 1, 2025. Under the Act, the Group is required to pay supplementary tax on profits of subsidiaries in the above jurisdictions that are collectively taxed at less than 15% of the effective tax rate.

As the Group’s Hong Kong subsidiary has consolidated entities operating in Macau and Bangladesh with a tax rate lower than 15%, in accordance with the income inclusion principle, the Group recognized income tax expenses of $125,094 thousand (US$4,067 thousand) for the year ended December 31, 2025.

Based on the Global Anti-Base Erosion (GloBE), the Group adjusted and estimated that the combined minimum tax income of its subsidiaries in Indonesia and Vietnam results in an effective tax rate exceeding 15%, while the subsidiaries in Singapore and Brazil qualify for the “Transitional Safe Harbor under Country-by-Country Reporting (CbCR).” Therefore, the Group considers that the subsidiaries in Indonesia, Vietnam, Singapore, and Brazil are not required to pay local top-up tax under the Pillar Two Income Tax rules.

Except for the subsidiaries in the aforementioned regions and countries, the Group’s other subsidiaries subject to the Pillar Two Income Tax rules do not have any cases where the combined effective tax rate falls below 15%.

f. Tax disputes related to the Indonesian subsidiary

The Indonesian Tax Bureau had made transfer pricing adjustments to the net profits for the tax period of year 2017 on two subsidiaries of the Group in Indonesia (the “Indonesian Subsidiaries”) respectively and claimed for additional taxes together with administrative penalties and surcharges relating to corporate income tax and related withholding tax (the “Disputed Taxes”). The Disputed Taxes of the aforesaid Indonesian Subsidiaries amounted to $2,460,826 thousand (about US$79,000 thousand) and $934,630 thousand (about US$30,000 thousand), respectively, were fully paid. The Indonesian subsidiaries lodged appeals to the Supreme Court of the Republic of Indonesia (the “Supreme Court”) on July 29, 2024 and February 17, 2025, respectively.

The Group of the subsidiaries is of the view that the Indonesian Subsidiaries had fully paid the income tax for the tax period of year 2017 in accordance with applicable legal requirements. However, having considered the actual appeal process, effects of any potential changes in facts or circumstances, and the uncertainty about the final outcome of the appeals, the Group based on its best estimate has determined that $912,129 thousand (about US$28,200 thousand) additional income tax expenses and administrative penalties of $397,844 thousand (about US$12,300 thousand) are recognized in 2024, respectively recorded under income tax expenses and other losses. The remaining balance is recognized as current income tax assets of $590,633 thousand (about US$19,400 thousand) and other receivables of $1,494,850 thousand (about US$49,100 thousand), respectively.

69 -

Among the aforementioned cases, the tax dispute relating to the corporate income tax of one of the Indonesian Subsidiaries was resolved in favor of the subsidiary by the Supreme Court at the end of 2025. As of the reporting date, refunds of the income tax originally paid amounting to $633,461 thousand (about US$20,400 thousand) and the administrative penalties amounting to $276,363 thousand (about US$8,900 thousand) had been received before the date of financial report, respectively recorded under reductions of income tax expenses and other losses. current income tax assets and other receivables. As of December 31, 2025, the remaining balances of the disputed current income tax assets and other receivables amounted to $1,250,914 thousand (about US$39,800 thousand) and $1,822,940 thousand (about US$58,000 thousand), respectively. The remaining cases are still under review.

28. EARNINGS PER SHARE

The basic earnings per share and diluted earnings per share were as follows:

	For the Year Ended December 31
	2025	2024
Net profit (in thousand dollars)
Earnings used in the computation of earnings per share	$ 12,068,247	$ 16,035,591
Weighted average number of shares outstanding (in thousand shares)
Weighted average number of common shares used in the computation of basic earnings per share	2,946,787	2,946,787
Effect of potentially dilutive common shares:
Compensation of employees	8,926	8,922
Weighted average number of common shares used in the computation of diluted earnings per share	2,955,713	2,955,709
Earnings per share (in dollars)
Basic earnings per share	$4.10	$5.44
Diluted earnings per share	$4.08	$5.43

The Company may settle the compensation paid to employees by cash or shares; therefore, the Company assumes the entire amount of the compensation will be settled in shares and the resulting potential shares will be 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 shareholders resolve the number of shares to be distributed to employees at their meeting in the following year.

SHARE-BASED PAYMENT ARRANGEMENTS

a. Information about Yue Yuen’s employee share options

On January 28, 2014 and amended on March 23, 2016 and September 28, 2018, the board of directors of Yue Yuen adopted a share award scheme. Under the share award scheme, a trustee which is independent of Yue Yuen purchased Yue Yuen shares from the secondary market, and the shares will vest to the selected participants through a trust agreement. The awarded shares shall not exceed 2% of the issued share capital of Yue Yuen as of the date of grant during the valid period (from January 28, 2014 to January 27, 2024). The maximum number of shares which may be awarded to all participants under the award scheme shall not exceed 1% of the issued share capital of Yue Yuen. The share award scheme amended and restated on November 13, 2023 by the board of directors of Yue Yuen for an extra 10-year extension, which will be validated on January 28, 2024.

Information about the granted employee share options was as follows:

	Number of Shares (In Thousands)
	2025	2024
Balance on January 1	1,570	1,705
Options granted	2,452	1,355
Options cancelled	(200)	(135)
Options exercised	(2,062)	(1,355)
Balance on December 31	1,760	1,570

Information about the employee share options on the grant date during the years ended December 31, 2025 and 2024, was as follows:

	Granted on June 1, 2025	Granted on March 13, 2025	Granted on May 20, 2024	Granted on March 20, 2025	Granted on February 6, 2024
Grant date share price	HK$ 11.82	HK$ 13.04	HK$ 15.26	HK$ 11.32	HK$ 7.70
Number of shares (in thousand shares)	1,840	612	48	860	447

Yue Yuen recognized $64,169 thousand and $88,847 thousand in compensation costs for the years ended December 31, 2025 and 2024, respectively.

b. Information about Pou Sheng’s employee share options

On May 9, 2014 and amended on November 11, 2016, the board of directors of Pou Sheng adopted a share award scheme. Under the share award scheme, a trustee which is independent of Pou Sheng purchased Pou Sheng shares from the secondary market, and the shares will vest to the selected participants through a trust agreement. The awarded shares shall not exceed 4% of the issued share capital of Pou Sheng as at the date of grant during the valid period (from May 9, 2014 to May 9, 2024). The maximum number of shares which may be awarded to all participants under the award scheme shall not exceed 1% of the issued share capital of Pou Sheng. The share award scheme amended and restated on November 13, 2023 by the board of directors of Pou Sheng for an extra 10-year extension, which will be validated on May 9, 2024.

71 -

Information about the granted employee share options was as follows:

	Number of Shares (In Thousands)
	2025	2024
Balance on January 1	22,080	5,227
Options granted	24,830	22,000
Options cancelled	(3,730)	(436)
Options exercised	(9,250)	(4,711)
Balance on December 31	33,930	22,080

Information about the employee share options on the grant date during the years ended December 31, 2025 and 2024, was as follows:

| | Granted on
August 18, 2025 | Granted on
August 19, 2024 |
| --- | --- | --- |
| Grant date share price | HK$ 0.498 | HK$ 0.598 |
| Number of shares (in thousand shares) | 24,830 | 22,000 |

Pou Sheng recognized $30,076 thousand and $17,857 thousand in compensation costs for the years ended December 31, 2025 and 2024, respectively.

30. CAPITAL MANAGEMENT

The Group’s capital management policy is to ensure that the Group has sufficient financial resources and operating plans to balance the working capital, capital expenditure, research and development expenditure, repayment of debt and dividends paid to shareholders within twelve months.

31. FINANCIAL INSTRUMENTS

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

Except those listed in the table below, the Group’s management considers that the carrying amounts of financial assets and financial liabilities recognized in the consolidated financial statements approximate their fair values.

December 31, 2025

	Carrying Amount	Fair Value
		Level 1	Level 2	Level 3	Total
Financial assets
Financial assets at amortized cost
Bonds	$ 22,398,586	$ -	$ 22,508,193	$ -	$ 22,508,193

December 31, 2024

	Carrying Amount	Fair Value
		Level 1	Level 2	Level 3	Total
Financial assets
Financial assets at amortized cost
Bonds	$ 12,606,035	$ -	$ 12,394,101	$ -	$ 12,394,101

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

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1, 2 and 3 based on the degree to which the fair value is observable:

1) The fair value hierarchy is as follows:

December 31, 2025

	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Structured deposits	$ -	$ 1,098,969	$ -	$ 1,098,969
Derivative financial assets	-	55,541	-	55,541
Mutual funds	772,311	-	2,033,869	2,806,180
Other financial products	-	994,174	-	994,174
	$ 772,311	$ 2,148,684	$ 2,033,869	$ 4,954,864
Financial assets at FVTOCI
Investments in equity instruments
Listed shares	$ 24,814,533	$ -	$ -	$ 24,814,533
Unlisted shares	-	-	139,275	139,275
	$ 24,814,533	$ -	$ 139,275	$ 24,953,808
Financial liabilities at FVTPL
Derivative financial liabilities	$ -	$ 84,282	$ -	$ 84,282
December 31, 2024
	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Derivative financial assets	$ -	$ 74,237	$ -	$ 74,237
Mutual funds	1,625,415	-	2,003,089	3,628,504
	$ 1,625,415	$ 74,237	$ 2,003,089	$ 3,702,741
Financial assets at FVTOCI
Investments in equity instruments
Listed shares	$ 24,250,266	$ -	$ -	$ 24,250,266
Unlisted shares	-	-	145,296	145,296
	$ 24,250,266	$ -	$ 145,296	$ 24,395,562
Financial liabilities at FVTPL
Derivative financial liabilities	$ -	$ 171,632	$ -	$ 171,632

2) There were no transfers between Levels 1 and 2 in the current and prior periods.

3) There was no reconciliation of Level 3 fair value measurements of financial assets except for additions, disposals and changes in fair value recognized in other comprehensive income.

4) The fair value of Level 2 financial assets and financial liabilities is determined as follows:

a) The fair value of financial instruments with standard terms and conditions and traded in active liquid markets is determined with reference to the quoted market prices.

b) The future cash flows of derivatives are estimated based on observable forward exchange rates at the end of the reporting period and contract forward rates, discounted at a rate that reflects the credit risk of various counterparties.

5) Valuation techniques and assumptions applied for Level 3 fair value measurement is as follows:

The fair values of unlisted shares and funds with no active market is determined using the asset approach, income approach and market approach.

c. Categories of financial instruments

	December 31
	2025	2024
Financial assets
Financial assets at FVTPL
Mandatorily at FVTPL	$ 4,954,864	$ 3,702,741
Financial assets at amortized cost (Note 1)	101,764,911	95,321,562
Financial assets at FVTOCI	24,953,808	24,395,562
Financial liabilities
Financial liabilities at FVTPL
Held for trading	84,282	171,632
Financial liabilities at amortized cost (Note 2)	112,318,581	104,208,786

Note 1: The balance included financial assets at amortized cost, which comprise cash and cash equivalents, financial assets at amortized cost, notes receivable, accounts receivable, other receivables and refundable deposits.

Note 2: The balances included financial liabilities at amortized cost, which comprise short-term borrowings, short-term bills payable, notes payable, trade and other payables, long-term borrowings (including current portion), long-term payables and guarantee deposits.

74 -

d. Financial risk management objectives and policies

The Group’s major financial instruments included equity investments, borrowings, receivables, payables, lease liabilities, refundable deposits and guarantee deposits. The Group’s treasury function monitors and manages the financial risks relating to the operations of the Group through internal risk reports that analyze exposures by degree and magnitude of risks. 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 Group’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. The Group entered into a variety of derivative financial instruments to manage its exposure to foreign currency risk and interest rate risk.

a) Foreign currency risk

The Group had foreign currency sales and purchases, which exposed the Group to foreign currency risk. Exchange rate exposures were managed within approved policy parameters utilizing forward foreign exchange contracts and other derivative instruments.

The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities and the carrying amount of the derivatives exposed to foreign currency risk at the end of the reporting period are set out in Note 35 to the consolidated financial statements.

Sensitivity analysis

The Group was mainly exposed to the USD, RMB, HKD, VND and IDR.

The following table details the Group’s sensitivity to 1% increase (decrease) in New Taiwan dollars (the functional currency) against the relevant foreign currencies. A positive (negative) number below indicates an increase (decrease) in pre-tax profit with New Taiwan dollars strengthening 1% against the relevant currency. For a 1% weakening of New Taiwan dollars against the relevant currency, there would be an equal and opposite impact on pre-tax profit and the balances below would be negative.

	For the Year Ended December 31
	2025	2024
USD	$ 36,332	$ 22,228
RMB	(59,263)	(42,757)
HKD	(2,502)	(1,821)
VND	21,758	9,902
IDR	(1,004)	(279)

b) Interest rate risk

The Group was exposed to interest rate risk because entities in the Group borrowed funds at both fixed and floating interest rates. The risk is managed by the Group by maintaining an appropriate mix of fixed and floating rate borrowings and using interest rate swap contracts and forward interest rate contracts.

75 -

The carrying amounts of the Group’s financial liabilities with exposure to interest rates at the end of the reporting periods were as follows:

December 31	2025	2024
Cash flow interest rate risk
Financial liabilities	$ 79,286,615	$ 69,552,543

Sensitivity analysis

The sensitivity analysis below was based on the Group’s floating rate liabilities. The analysis was prepared assuming the amount of the liabilities outstanding at the end of the reporting period was outstanding for the whole period. If there had been a 1% increase in interest rates, the Group’s cash outflows would have increased by $792,866 thousand and $695,525 thousand during the years ended December 31, 2025 and 2024, respectively.

c) Other price risk

The Group was exposed to equity price risk through its investments in listed equity securities and mutual funds. The investments are held for strategic rather than trading purposes. The Group does not actively trade these investments.

Sensitivity analysis

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

If equity prices had declined by 1%, income before income tax for the years ended December 31, 2025 and 2024 would have decreased by $28,062 thousand and $36,285 thousand, respectively, as a result of the changes in fair value of financial assets at FVTPL, and the other comprehensive income for the years ended December 31, 2025 and 2024 would have decreased by $248,335 thousand and $242,692 thousand, respectively, as a result of the changes in fair value of financial assets at FVTOCI.

The Group’s sensitivity to equity securities investment has not changed significantly from the previous year.

2) Credit risk

Financial instruments are evaluated for credit risk (which represents the potential loss that would be incurred by the Company if a counterparty or third party were to breach a contract). The risk includes the centralization of credit risk, components, contract figures, and accounts receivable. Besides, the Company requires significant clients to provide guarantees of a credit rating of intermediate or higher issued by a bank so as to effectively reduce its credit risk.

3) Liquidity risk

The Group manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Group’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.

a) Liquidity and interest rate risk tables for non-derivative financial liabilities

The tables have been drawn up based on the undiscounted cash flows of financial liabilities including both interest and principal from the earliest date on which the Group may 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	5+ Years
Non-derivative financial liabilities
Non-interest bearing liabilities	$ 16,879,473	$ 8,711,089	$ 8,412,317	$ 59,965	$ 157,747
Lease liabilities	233,845	481,772	1,737,236	3,310,159	948,432
Floating interest rate liabilities	22,107,317	7,446,729	11,882,974	37,849,595	-
Financial guarantee contracts	1,672,076	-	-	-	-
	$ 40,892,711	$ 16,639,590	$ 22,032,527	$ 41,219,719	$ 1,106,179

December 31, 2024

	On Demand or Less than 1 Month	1-3 Months	3 Months to 1 Year	1-5 Years	5+ Years
Non-derivative financial liabilities
Non-interest bearing liabilities	$ 21,262,534	$ 5,852,982	$ 8,858,310	$ 63,105	$ 156,388
Lease liabilities	264,319	543,151	1,911,100	4,220,246	819,100
Floating interest rate liabilities	17,430,302	7,305,138	10,691,040	34,126,063	-
Financial guarantee contracts	1,752,824	-	-	-	-
	$ 40,709,979	$ 13,701,271	$ 21,460,450	$ 38,409,414	$ 975,488

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

b) Liquidity and interest rate risk tables for derivative financial liabilities

The following table details the Group's liquidity analysis for its derivative financial instruments. The table was based on the undiscounted contractual net cash inflows and outflows on derivative instruments. When the amount payable or receivable is not fixed, the amount disclosed has been determined by reference to the projected interest rates as illustrated by the yield curves at the end of the reporting period.

December 31, 2025

	On Demand or Less than 1 Month	1-3 Months	3 Months to 1 Year	1-5 Years	5+ Years
Forward exchange contracts	$ 19,876	$ 21,313	$ 27,713	$ -	$ -
Exchange rate option contracts	4,628	-	8,963	-	-
Exchange rate swap contracts	-	-	1,789	-	-
	$ 24,504	$ 21,313	$ 38,465	$ -	$ -

December 31, 2024

	On Demand or Less than 1 Month	1-3 Months	3 Months to 1 Year	1-5 Years	5+ Years
Forward exchange contracts	$ 9,513	$ 51,839	$ 25,989	$ -	$ -
Exchange rate option contracts	28,517	32,935	22,839	-	-
	$ 38,030	$ 84,774	$ 48,828	$ -	$ -

32. TRANSACTIONS WITH RELATED PARTIES

Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation and are not disclosed in this note. Details of transactions between the Group and other related parties are disclosed below.

a. Related party names and categories

Name	Related Party Category
Oftenrich Holdings Limited	Associate
San Fang Chemical Industry Co., Ltd.	Associate
Nan Pao Resins Chemical Co., Ltd.	Associate
Ka Yuen Rubber Factory Limited	Joint venture
Twinways Investments Limited	Joint venture
Shan Dong Liwei Economic and Trade Co., Ltd.	Other related party

b. Operating revenue

Account Item	Related Party Category	For the Year Ended December 31
		2025	2024
Sales	Associates	$ 83,068	$ 110,535
	Joint ventures	185,260	452,818
	Other related party	147,850	133,830
		$ 416,178	$ 697,183

The sales prices and receivable terms to related parties were not significantly different from those of non-related parties.

c. Purchases

Account Item	Related Party Category	For the Year Ended December 31
		2025	2024
Purchases	Associates	$ 3,535,353	$ 3,459,206
	Joint ventures	5,146,748	4,771,962
		$ 8,682,101	$ 8,231,168

The purchase prices and payment terms from related parties were not significantly different from those of non-related parties.

d. Receivables from related parties

Account Item	Related Party Category	December 31
		2025	2024
Accounts receivable	Associates	$ 7,850	$ 18,249
	Joint ventures	11,659	40,296
	Other related party	12,591	9,754
		$ 32,100	$ 68,299

No expected credit loss was recognized for the years ended December 31, 2025 and 2024 for the amounts owed by related parties.

e. Payables to related parties

Account Item	Related Party Category	December 31
		2025	2024
Accounts payable	Associates	$ 714,667	$ 708,727
	Joint ventures	1,036,492	1,067,164
		$ 1,751,159	$ 1,775,891

f. Financing provided

Please refer to Table 1 "Financing provided to others" of Note 36 to the consolidated financial statements.

g. Endorsements/guarantees provided

Please refer to Table 2 "Endorsements/guarantees provided" of Note 36 to the consolidated financial statements.

h. Compensation of key management personnel

	For the Year Ended December 31
	2025	2024
Short-term employee benefits	$ 229,058	$ 302,979
Post-retirement benefits	18,945	-
	$ 248,003	$ 302,979

The remuneration of directors and key management personnel was determined by the remuneration committee, is based on the performance of individuals and market trends.

33. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The following assets were provided as collateral for the issuance of gift vouchers:

	December 31
	2025	2024
Financial assets at amortized cost	$ 54,744	$ 59,198

34. SIGNIFICANT COMMITMENTS AND UNRECOGNIZED LIABILITIES

a. Outstanding letters of credit of the Group at the end of reporting period were as follows:

(Unit: In Thousands Foreign Currencies)

Foreign Currencies	December 31
	2025	2024
USD	$ 195	$ 1,224
VND	34,207,410	12,685,381

b. The Company entered into project agreements with the Taiwan Small & Medium Enterprise Counseling Foundation. According to the project agreements, the Company has to provide promissory notes and the bank's guaranteed letter to Taiwan Small & Medium Enterprise Counseling Foundation as guarantee.

c. The Group entered into a memorandum of understanding with the government of Tamil Nadu, India, on April 17, 2023. According to the memorandum, the Group will invest approximately INR23 billion (approximately US$276 million) in two stages during the 12-year investment period from 2023 to 2035 to set up a production base in the Special Economic Zone of Tamil Nadu.

d. The unrecognized contractual commitments of the merged company are as follows:

	December 31
	2025	2024
Procurement of property, plant and equipment	$ 1,070,192	$ 2,624,406

35. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The following information was aggregated by the foreign currencies other than the functional currencies of the entities in the Group and the exchange rates between the foreign currencies and respective functional currencies were disclosed. The significant assets and liabilities denominated in foreign currencies were as follows:

December 31, 2025

	Foreign Currencies (In Thousands)	Exchange Rate	Carrying Amount (In Thousands)
Financial assets
Monetary items
USD	$ 36,000	31.430	$ 1,131,486
NTD	1,853,647	1	1,853,647
RMB	1,489,958	4.496	6,698,851
HKD	73,992	4.038	298,780
VND	242,545,763	0.00118	286,204
IDR	241,609,574	0.00188	454,226
Non-monetary items
USD	4,635	31.430	145,668
NTD	611,785	1	611,785
RMB	297,262	4.496	1,336,488
VND	1,358,475	0.00118	1,603
Financial liabilities
Monetary items
USD	151,584	31.430	4,764,295
NTD	263,854	1	263,854
RMB	171,863	4.496	772,694
HKD	12,043	4.038	48,629
VND	2,418,377,966	0.00118	2,853,686
IDR	191,387,234	0.00188	359,808
Non-monetary items
USD	117	31.430	3,671
December 31, 2024
	Foreign Currencies (In Thousands)	Exchange Rate	Carrying Amount (In Thousands)
Financial assets
Monetary items
USD	$ 48,962	32.785	$ 1,605,223
NTD	398,993	1	398,993
RMB	2,552,437	4.478	11,429,812
HKD	61,812	4.222	260,972
VND	362,921,260	0.00127	460,910
IDR	170,255,665	0.00203	345,619
			(Continued)

81 -

	Foreign Currencies (In Thousands)	Exchange Rate	Carrying Amount (In Thousands)
Non-monetary items
USD	$ 5,025	32.785	$ 164,731
NTD	753,957	1	753,957
RMB	154,120	4.478	690,150
VND	30,800,787	0.00127	39,117
Financial liabilities
Monetary items
USD	116,733	32.785	3,827,105
NTD	1,527,825	1	1,527,825
RMB	1,597,533	4.478	7,153,755
HKD	18,749	4.222	79,157
VND	1,353,072,441	0.00127	1,718,402
IDR	156,297,537	0.00203	317,284
			(Concluded)

For the years ended December 31, 2025 and 2024, net foreign exchange gains were $420,728 thousand and $304,801 thousand, respectively. It is impractical to disclose net foreign exchange gain (loss) by each significant foreign currency due to the variety of the functional currencies of the Group's entities.

36. SEPARATELY DISCLOSED ITEMS

a. Information about significant transactions and investees:

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)
6) Intercompany relationships and significant intercompany transactions (Table 6)
7) Information on investees (Table 7)

b. 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 period, repatriations of investment income, and limit on the amount of investment in the mainland China area (Table 8)

2) Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party: (None).

37. 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 Group's reportable segments were as follows:

Manufacturing of shoes;
Retail of sporting goods and wholesale business; and
- Others.

a. Segment revenue and results

The Group's revenue and results by reportable segment were as follows:

For the year ended December 31, 2025

	Manufacturing of Shoes	Retail of Sporting Goods and Wholesale Business	Others	Total
Revenue from external customers	$ 175,917,312	$ 74,585,958	$ 896,939	$ 251,400,209
Segment income	$ 24,475,770	$ 4,019,206	$ 587,583	$ 29,082,559
Administrative costs, remuneration of directors				(17,515,459)
Interest income				1,945,221
Rental income				1,040,449
Dividend income				1,004,441
Other income				1,043,763
Net loss on disposal of property, plant and equipment				(74,012)
Net foreign exchange gain				420,728
Net gain on disposal of associates				420,927
Net gain on financial assets at FVTPL				329,227
Impairment loss of assets				(97,696)
Loss on modification of lease				(1,104)
Other loss				(102,304)
Net loss on derecognition of financial assets at amortized cost				(31,793)
Finance costs				(2,536,358)
Share of profit of associates and joint ventures				7,141,294
Income before income tax				$ 22,069,883

For the year ended December 31, 2024

	Manufacturing of Shoes	Retail of Sporting Goods and Wholesale Business	Others	Total
Revenue from external customers	$ 180,733,596	$ 82,157,958	$ 926,273	$ 263,817,827
Segment income	$ 27,739,421	$ 5,189,954	$ 591,147	$ 33,520,522
Administrative costs, remuneration of directors				(17,566,285)
Interest income				2,103,045
Rental income				907,138
Dividend income				897,935
Other income				1,419,703
Net gain on disposal of property, plant and equipment				45,516
Net loss on disposal of investment properties				(15,752)
Net foreign exchange gain				304,801
Net gain on disposal of associates				1,007,444
Net gain on financial assets at FVTPL				423,917
Impairment loss of assets				(206,391)
Gain on modification of lease				301,452
Other loss				(760,721)
Net loss on derecognition of financial assets at amortized cost				(10,438)
Finance costs				(2,804,589)
Share of profit of associates and joint ventures				10,158,437
Income before income tax				$ 29,725,734

1) Sales between segments were made at market price.

2) Segment profit represented the profit before income tax earned by each segment without allocation of administration costs and remuneration of directors, interest income, rental income, dividend income, other income, net (loss) gain on disposal of property, plant and equipment, net loss on disposal of investment properties, net foreign exchange gain, net gain on disposal of associates, net gain on financial instruments, impairment loss of assets, (loss) gain on modification of lease, other loss, finance costs, net loss on derecognition of financial assets at amortized cost and the share of profit of associates and joint ventures. This was the measure reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance.

b. Geographical information

The Group’s revenues from continuing operations from external customers by location of operations were detailed below.

	Revenues from External Customers
	For the Year Ended December 31
	2025	2024
Asia	$ 136,357,951	$ 153,750,286
USA	50,053,566	49,525,374
Europe	47,737,328	45,908,086
Others	17,251,364	14,634,081
	$ 251,400,209	$ 263,817,827

c. Information on major customers

Other single customer contributed 10% or more to the Group’s revenue were as follows:

	For the Year Ended December 31
	2025		2024
	Amount	% of Total	Amount	% of Total
Customer A (Note)	$ 60,002,480	24	$ 66,080,138	25
Customer B (Note)	43,275,751	17	44,501,934	17
	$ 103,278,231	41	$ 110,582,072	42

Note: Revenue from manufacturing of shoes.

85 -

POU CHEN CORPORATION AND SUBSIDIARIES

ENAMING PROVIDED TO OTHERS

FOR THE YEAR-UNITED DECEMBER 31, 2015

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

TABLE 1

No. (Note 1)	Financing Company	Recruiting Company	Financial Statement Account	Related Party	Maximum Balance for the Period	Ending Balance	Actual Recruiting Amount	Interest Rate	Nature of Financing (Note 2)	Transaction Amounts	Reason for Short-term Financing	Allowance for Impairment Loss	Cultivated		Financing Limit for Each Receiver (Notes 1 and 3)	Aggregate Financing Limit (Notes 1 and 4)	Note
													Item	Value
1	Dongguan Bangjun Electronic Technology Co., Ltd.	Shangguo Yisen Industry Co., Ltd.	Accounts receivable from related parties	Yes	$ 60,595 (85,000,000)	$ -	$ -	-	2	$ -	Operating capital	$ -	-	$ -	$ 331,277	$ 331,277
2	Dongguan Yuening Electronic Technology Co., Ltd.	Shangguo Yisen Industry Co., Ltd.	Accounts receivable from related parties	Yes	45,730 (8500	-	-	-	2	-	Operating capital	-	-	-	330,380	330,380
3	Wang Yi Construction Co., Ltd.	Bartis Development Corporation	Accounts receivable from related parties	Yes	20,080	16,800	16,800	1.29	2	-	Operating capital	-	-	-	20,017	20,017
4	Song Ming Investments Co., Ltd.	Bartis Development Corporation	Accounts receivable from related parties	Yes	180,080	100,800	64,000	1.29	2	-	Operating capital	-	-	-	1,377,180	1,377,180
5	Pro-AcR International Development Enterprise Inc.	J-Tech Sporting Enterprise Ltd.	Accounts receivable from related parties	Yes	180,080	100,800	100,800	1.69	2	-	Operating capital	-	-	-	184,944	104,944
6	Driod Asia Limited	Driod Vietnam Co., Ltd.	Accounts receivable from related parties	Yes	20,427 (0.55)	-	-	-	2	-	Operating capital	-	-	-	360,081	360,081
7	Prime Asia (S.E. Asia) Leather Corporation	Prime Asia (Vietnam) Co., Ltd.	Accounts receivable from related parties	Yes	187,729 (0.55)	336,211 (7,700,000)	455,735 (0.55)	1.50	2	-	Operating capital	-	-	-	2,080,699	2,080,699
8	Yue Yuan Industrial (Holdings) Limited	Pi. Poo Yuon Indonesia	Accounts receivable from related parties	Yes	2,635,794 (0.55)	2,498,695 (7,700,000)	2,498,695 (0.55)	3.00	2	-	Operating capital	-	-	-	55,050,016	55,050,016
		Pi. Glostar Indonesia	Accounts receivable from related parties	Yes	75,580,000 (0.55)	75,580,000 (0.55)	75,580,000 (0.55)	0.00	2	-	Operating capital	-	-	-	55,050,016	55,050,016
		Pi. Nikonau Gomilong	Accounts receivable from related parties	Yes	1,622,768 (0.55)	1,622,768 (0.55)	1,622,768 (0.55)	3.00	2	-	Operating capital	-	-	-	55,050,016	55,050,016
		Pi. Poo Chuo Indonesia	Accounts receivable from related parties	Yes	5,420,569 (0.55)	5,997,570 (0.55)	6,997,570 (0.55)	3.00	2	-	Operating capital	-	-	-	55,050,016	55,050,016
		Pouyuan Vietnam Company Limited	Accounts receivable from related parties	Yes	1,310,308 (0.55)	1,288,650 (0.55)	1,288,650 (0.55)	3.00	2	-	Operating capital	-	-	-	55,050,016	55,050,016
		Pou Phuang Vietnam Company Limited	Accounts receivable from related parties	Yes	11,080,588 (0.55)	11,080,588 (0.55)	11,080,588 (0.55)	3.00	2	-	Operating capital	-	-	-	55,050,016	55,050,016
		Pou Hang Vietnam Company Limited	Accounts receivable from related parties	Yes	194,226 (0.55)	194,226 (0.55)	194,226 (0.55)	3.00	2	-	Operating capital	-	-	-	55,050,016	55,050,016
		Pou Li Vietnam Company Limited	Accounts receivable from related parties	Yes	296,535 (0.55)	308,419 (0.55)	308,419 (0.55)	3.00	2	-	Operating capital	-	-	-	55,050,016	55,050,016
		Pou Phuang Vietnam Company Limited	Accounts receivable from related parties	Yes	1,050,253 (0.55)	734,220 (0.55)	734,220 (0.55)	3.00	2	-	Operating capital	-	-	-	55,050,016	55,050,016
		Pou Bang Vietnam Company Limited	Accounts receivable from related parties	Yes	2,422,065 (0.55)	2,394,540 (0.55)	2,394,540 (0.55)	3.00	2	-	Operating capital	-	-	-	55,050,016	55,050,016
		Pou Sang Vietnam Company Limited	Accounts receivable from related parties	Yes	5,023,055 (0.55)	5,023,055 (0.55)	5,023,055 (0.55)	3.00	2	-	Operating capital	-	-	-	55,050,016	55,050,016
		Pro-Kingtun Industrial Company Limited	Accounts receivable from related parties	Yes	70,364 (0.55)	70,364 (0.55)	70,364 (0.55)	3.00	2	-	Operating capital	-	-	-	55,050,016	55,050,016
		Pro-Kingtun Industrial Company Limited	Accounts receivable from related parties	Yes	1,641,899 (0.55)	608,802 (0.55)	608,802 (0.55)	3.00	2	-	Operating capital	-	-	-	55,050,016	55,050,016
		Solar Link International Ltd.	Accounts receivable from related parties	Yes	184,264 (0.55)	27,973 (0.55)	27,973 (0.55)	3.00	2	-	Operating capital	-	-	-	55,050,016	55,050,016
		Solar Link International Inc.	Accounts receivable from related parties	Yes	5,062 (0.55)	8,420 (0.55)	8,420 (0.55)	3.00	2	-	Operating capital	-	-	-	55,050,016	55,050,016
		CI Table Mts Dish Ve Thaoing Mai Tu Yun Seat Ming Khun Van Thuan	Accounts receivable from related parties	Yes	1,050 (0.55)	1,050 (0.55)	1,050 (0.55)	1,050 (0.55)	3.00	2	-	Operating capital	-	-	-	55,050,016	55,050,016
		Pi. Hardness Attail Indonesia	Accounts receivable from related parties	Yes	2,196,431 (0.55)	2,196,431 (0.55)	2,196,431 (0.55)	3.00	2	-	Operating capital	-	-	-	55,050,016	55,050,016
		Oriod Vietnam Co., Ltd.	Accounts receivable from related parties	Yes	1,196,431 (0.55)	1,196,431 (0.55)	1,196,431 (0.55)	3.00	2	-	Operating capital	-	-	-	55,050,016	55,050,016
Pou Chuo (Cambodia) Co., Ltd.	Accounts receivable from related parties	Yes	471,459 (0.55)	471,459 (0.55)	471,459 (0.55)	3.00	2	-	Operating capital	-	-	-	55,050,016	55,050,016
Yang Xin Peu Jia Shren Manufacturing Co., Ltd.	Accounts receivable from related parties	Yes	10,580 (0.55)	10,580 (0.55)	10,580 (0.55)	1.00	2	-	Operating capital	-	-	-	55,050,016	55,050,016
Dongguan Yu Xiang Shren Material Co., Ltd.	Accounts receivable from related parties	Yes	19,480 (0.55)	19,480 (0.55)	19,480 (0.55)	3.00	2	-	Operating capital	-	-	-	55,050,016	55,050,016
9	Hen-Luck Group Ltd.	High Glory Footwear India Private Ltd.	Accounts receivable from related parties	Yes	692,121 (0.55)	-	-	-	2	-	Operating capital	-	-	-	4,096,492	4,096,492
10	Pou Yue Pali Ltd.	High Glory Footwear India Private Ltd.	Accounts receivable from related parties	Yes	691,660 (0.55)	691,660 (0.55)	2.00	2	-	Operating capital	-	-	-	4,096,492	4,096,492
11	The Look (Munso Commercial Offshore) Company Ltd.	Dongguan Yusheng Shoe Industry Co., Ltd.	Accounts receivable from related parties	Yes	100,000 (000,000)	-	-	-	2	-	Operating capital	-	-	-	3,071,588	3,071,588
12	Min (Munso Commercial Offshore) Ltd.	Dongchuan Peo Chen Footwear Company Limited	Accounts receivable from related parties	Yes	687,680 (0.55)	-	-	-	2	-	Operating capital	-	-	-	3,071,588	3,071,588
13	Shin (Munso Commercial Offshore) Company Ltd.	Dongchuan Peo Chen Footwear Company Limited	Accounts receivable from related parties	Yes	180,000 (000,000)	-	-	-	2	-	Operating capital	-	-	-	3,071,588	3,071,588

(Continued)

No. (Note 1)	Financing Company	Recovering Company	Financial Statement Account	Related Party	Maximum Balance for the Period	Ending Balance	Actual Recovering Amount	Interest Rate	Nature of Financing (Note 2)	Transaction Amounts	Reasons for Short-term Financing	Allowance for Impairment Loss	Collected		Financing Limit for Each Recovery (Notes 2 and 3)	Aggregate Financing Limit (Notes 3 and 4)	Note
													Item	Value
14	Dongguan Yusheng Shou Industry Co., Ltd.	Dong Guan Peo Chen Foerwear Company Limited	Accounts receivable from related parties	Yes	$1,057,520	$44,860	$ -	1.80	2	$ -	Operating capital	$ -	-	$ -	$ 1,933,061	$ 1,933,061
		Mangguo Yoon Industry Co., Ltd.	Accounts receivable from related parties	Yes	280,000	280,000	18,000,000				Operating capital				1,933,061	1,933,061
		Dongguan Yu Xiang Shom Material Co., Ltd.	Accounts receivable from related parties	Yes	282,202	44,000,000	224,800	104,352	1.80	2	-	Operating capital				1,933,061	1,933,061
			Accounts receivable from related parties	Yes	224,000	30,000,000	20,000,000	9,000,000	17,000,000
15	Rai Jin Peo Yuen Foerwear Development Co., Ltd.	Yu Xing (Gaba) Foerwear Co., Ltd.	Accounts receivable from related parties	Yes	80,004	80,004	48,404	1.80	2	-	Operating capital	-	-	-	238,873	238,873
		Yue Yuan (Anfa) Foerwear Co., Ltd.	Accounts receivable from related parties	Yes	9,000,000	9,000,000	9,000,000				Operating capital				238,873	238,873
		Dong Guan Peo Chen Foerwear Company Limited	Dong Guan Peo Chen Foerwear Company Limited	Accounts receivable from related parties	Yes	57,741	-	-	-	2	-	Operating capital				685,033	685,033
			Dong Guan Peo Chen Foerwear Company Limited	Accounts receivable from related parties	Yes	57,741	-	-	-	2	-	Operating capital				685,033	685,033
17	Dong Guan Yue Yuan Foerwear Products Company Limited	Dong Guan Peo Chen Foerwear Company Limited	Accounts receivable from related parties	Yes	520,110	314,720	314,720	1.80	2	-	Operating capital				335,441	335,441
					(RMB)	6,000,000
18	Panyuan Vietnam Company Limited	Tech Mastery Vietnam Company Limited	Accounts receivable from related parties	Yes	102,130	305,500	305,500	2.50	2	-	Operating capital				3,687,278	3,687,278
					(RMB)	70,000,000	(RMB)	70,000,000
19	Pou Sang Vietnam Company Limited	Tech Mastery Vietnam Company Limited	Accounts receivable from related parties	Yes	112,150	167,774	167,774	2.50	2	-	Operating capital				4,116,217	4,116,217
					(RMB)	5,500,022	(RMB)	5,538,010
20	Pou Chan Vietnam Enterprise Ltd.	Tech Mastery Vietnam Company Limited	Accounts receivable from related parties	Yes	182,071	-	-	-	2	-	Operating capital				1,934,555	1,910,555
					(RMB)	6,790,419
21	Pecinus Pall Investments Limited	Bangladesh Peo Hung Industrial Limited	Accounts receivable from related parties	Yes	152,150	200,000	200,000	2.50	2	-	Operating capital				5,566,844	5,566,844
					(RMB)	7,000,000	(RMB)	7,000,000
		Pou Yuen Cambodia Enterprise, Ltd.	Accounts receivable from related parties	Yes	102,130	220,010	220,010	264,233	-	2	-	Operating capital				13,917,110	13,917,110
					(RMB)	5,000,000	(RMB)	5,007,000
22	Woabiphus Holdings Limited	Pou Chao Corporation	Accounts receivable from related parties	Yes	9,200,389	4,765,930	4,765,930	-	2	-	Operating capital				181,589,879	181,589,879
					(RMB)	151,000,000	(RMB)	151,000,000
23	Pou Sheng (China) Investment Group Co., Ltd.	Qingdao Peo-Sheng International Sport Products Co., Ltd.	Loans receivable	Yes	1,631,149	1,641,149	32,371	3.10	2	-	Operating capital				6,062,342	6,062,342
					(RMB)	305,409,033	(RMB)	305,409,033

Note 1: The Company is coded as follows:
a. The Company is coded "0".
b. The invoices is coded consecutively beginning from "1" in the order presented in the table above.

Note 2: The nature of financing is code as follows:
a. Business relationship is coded 1.
b. The need for short-term financing is coded 2.

Note 3: According to the Company's policy, procedure of financing provided to others as follows:
a. The maximum amount permitted to a single borrower is listed based on the types of financing reasons as follows:
1) Business relationship: Each of the financing amount shall not exceed the amount of out business relationship. Business relationship means higher amount of the purchases from or sales to both sides in the current year or in the future year and shall not exceed 10% of the Company's net worth.
2) The need for short-term financing: Each of the financing amount shall not exceed 10% of the Company's net worth.
b. The total maximum amount permitted to a single borrower is listed based on the types of financing reasons as follows:
1) Business relationship: Each of the financing amount shall not exceed 10% of the Company's net worth.
2) The need for short-term financing: Each of the financing amount shall not exceed 40% of the Company's net worth.
3) Among foreign companies which the Company holds 100% voting rights directly and indirectly, when financing is necessary, the amount is not limited by the above information. However, the limit amount of financing to others during one year shall not exceed the borrower's net worth.

Note 4: Dongguan Bongxiu (Fairwine Technology Co., Ltd. for subsidiaries in which Peo Chen holds 100% voting rights directly and indirectly. The financing amount and cash of the financing amount shall not exceed 100% of total equity of Dongguan Bongxiu (Fairwine Technology Co., Ltd.'s financial statement. Dongguan Yinsing (Fairwine Technology Co., Ltd. for subsidiaries in which Peo Chen holds 100% voting rights directly and indirectly. The financing amount and cash of the financing amount shall not exceed 100% of total equity of Dongguan Yinsing (Fairwine Technology Co., Ltd.'s financial statement. When Wang Yi Construction Co., Ltd. engages in fund lending, the financing amount shall not exceed 40% of total equity in the Wang Yi Construction Co., Ltd.'s financial statement. When Hong Ming Investments Co., Ltd. engages in fund lending, the financing amount shall not exceed 40% of total equity in the You Yuan's consolidated financial statements. Foreign companies on which You Yuan Industrial (Holdings) Limited holds 100% voting rights directly and indirectly. The financing amount shall not exceed 100% of total equity in the You Yuan's consolidated financial statements. If the lender or the borrower is registered in Taiwan, the financing amount shall not exceed 40% of total equity of lender's financial statement. When Woobiphus Holdings Limited engages in fund lending, the financing amount shall not exceed 100% of total equity in the Woobiphus Holdings Limited's consolidated financial statements. For subsidiaries in which Peo Hung (China) Investment Group Co., Ltd. holds not 100% voting rights directly. The financing amount shall not exceed 40% of total equity of lender's financial statement.

(Coverladed)

POC CHEN CORPORATION AND SUBSIDIARIES

CONTRACTS TO COLUMNS THAT MAY BE ESTIMATED FOR THE YEAR-ENDING DECEMBER 31, 2023

(A) Thousands of New Taiwan Dollars, Cohen Stated (Minerals)

TABLE 2

No. (Note 1)	Endorsement/ Guarantee Provider	Endorses/Guarantees	Limit on Endorsement/ Guarantee Given on Behalf of Each Party (Non 3)	Maximum Amount Endorsed/ Guaranteed During the Period	Outstanding Endorsement/ Guarantee at the End of the Period	Actual Borrowing Amount	Amount Endorsed/ Guaranteed by Collateral	Ratio of Accumulated Endorsement/ Guarantee to Net Equity in Latest Financial Statements (%)	Aggregate Endorsement/ Guarantee Limit (Non 3)	Endorsement/ Guarantee Given by Parent on Behalf of Subsidiaries (Non 4)	Endorsement/ Guarantee Given on Behalf of Companies in Mainland China (Non 4)	Note
Name	Relationship (Non 2)
8	Pou Chen Corporation	WenHaplin Holdings Limited	b	$ 140,890,645	$ 29,434,500	$ 27,972,500	$ -	$ -	28	$ 201,797,200	Y	N
Poc Aichi International Development Enterprise Inc.	b	140,890,645	42,294	48,801	-	48,801	-	201,797,200	Y	N	N
Hunan Development Corporation	b	140,890,645	8,292,300	8,185,800	2,437,300	-	6	201,797,200	Y	N	N
Window Entertainment Co., Ltd.	b	140,890,645	80,000	58,800	-	-	-	201,797,200	Y	N	N
Poc Shine Incorporated Co., Ltd.	b	140,890,645	1,758,000	1,758,000	-	-	-	201,797,200	Y	N	N
Poc Yuen Technology Co., Ltd.	b	140,890,645	180,000	188,800	31,600	-	-	201,797,200	Y	N	N
Poc Yi Development Co., Ltd.	b	140,890,645	300,000	808,800	74,500	-	1	201,797,200	Y	N	N
7	Yue Yuan Industrial (Holdings) Limited	Cohen Enterprise Inc.	f	47,861,653	1,079,163	1,821,475	678,947	-	-	217,654,133	N	N
Ottocash Holdings Limited	f	47,861,653	(0.5S)	52,500,000	(0.5S)	52,500,000	(0.5S)	217,654,133	N	N	N
Chang Yang Material Corp	f	47,861,653	4,250	4,250	-	-	-	217,654,133	N	N	N
PI Adults Care Industries	b	47,861,653	(0.5S)	2,982,484	4,302,494	-	-	217,654,133	N	N	N
Oriod Taiwan Limited	b	47,861,653	(0.5S)	134,000,000	(0.5S)	134,000,000	(0.5S)	70,657,1791	-	N	N
Pou Pheng Vietnam Company Ltd.	b	47,861,653	90,000	202,839	-	-	-	217,654,133	N	N	N
PI KMK Global Sports	b	47,861,653	(0.5S)	50,000,000	(0.5S)	50,000,000	-	217,654,133	N	N	N
PI Monetary Insurance Inc.	b	47,861,653	(0.5S)	189,000,000	(0.5S)	189,000,000	(0.5S)	19,945,0821	1	217,654,133	N
Yin Dean Technology Corporation	b	47,861,653	1,785,224	1,785,224	-	-	-	1	217,654,133	N	N
I-Cost Sporting Enterprises Ltd.	b	47,861,653	5,500,000	5,500,000	1,500,000	-	-	1	217,654,133	N	N
Yin Duan Technology Corporation Ltd.	b	47,861,653	2,000,000	2,000,000	2,000,000	222,740	-	1	217,654,133	N	N
2	Pou Sheng International (Holdings) Limited	Shaanxi Pincheng Trading Co., Ltd.	b	79,812,660	(0.516,222)	(0.5S)	262,890,900	(0.5S)	-	8	158,825,320	N
Shenghai Pou-Yuen Sport Products Business Trading Co., Ltd.	b	79,812,660	(0.5S)	46,000,000	(0.5S)	46,000,000	-	32,112	-	29	158,825,320
Hebi Puocun Sporting Goods Co., Ltd.	b	79,812,660	(0.5S)	12,616,784	11,379,835	-	-	29	158,825,320	N	Y
Hebi Puocun Sporting Goods Co., Ltd.	b	79,812,660	(0.5S)	46,000,000	(0.5S)	46,000,000	-	1	158,825,320	N	Y
Hunan YYSPORTS Sport Products Co., Ltd.	b	79,812,660	(0.5S)	295,934	297,579	-	-	1	158,825,320	N	Y
Zhejiang Shangdao Sporting Goods Co., Ltd.	b	79,812,660	(0.5S)	1,121,146	8,954,667	-	-	13	158,825,320	N	Y
Yue Chang (Kun Shan) Sports Co., Ltd.	b	79,812,660	(0.5S)	640,633,238	(0.5S)	640,633,238	-	6	158,825,320	N	Y
Qingdao Pou-Sheng International Sport Products Co., Ltd.	b	79,812,660	(0.5S)	561,256,673	(0.5S)	561,256,673	-	1	158,825,320	N	Y
Bao Shang Duo Ji (Beijing) Trading Company Ltd.	b	79,812,660	(0.5S)	213,630	213,630	-	-	1	158,825,320	N	Y
Pou Yuan Trading Corporation	b	79,812,660	(0.5S)	772,620	603,720	-	-	18	158,825,320	N	Y
Taiwan Taixing Trading Co., Ltd.	b	79,812,660	(0.5S)	46,000,000	(0.5S)	46,000,000	-	2	158,825,320	N	N
Guangzhou Pou-Yuen Trading Co., Ltd.	b	79,812,660	(0.5S)	4,000,000	(0.5S)	4,000,000	-	5	158,825,320	N	N
Pou Sheng (China) Investment Group Co., Ltd.	b	79,812,660	(0.5S)	1,613,124	2,674,100	-	-	5	158,825,320	N	Y
Taiyang Yan-Shen Sporting Goods Co., Ltd.	b	79,812,660	(0.5S)	1,613,124	2,674,100	-	-	1	158,825,320	N	Y
Hua Shen Sports Management Co., Ltd.	b	79,812,660	(0.5S)	46,000,000	(0.5S)	46,000,000	-	1	158,825,320	N	Y
Yue-Shen (Taiyang) Footwear Co., Ltd.	b	79,812,660	(0.5S)	1,613,124	2,674,100	-	-	2	158,825,320	N	Y
HUI-Biox Sports Management Co., Ltd.	b	79,812,660	(0.5S)	1,613,124	2,674,100	-	-	1	158,825,320	N	Y
HUI-Biox Sports Management Co., Ltd.	b	79,812,660	(0.5S)	3,000,000	(0.5S)	3,000,000	-	2	158,825,320	N	N
Hainan Shawao Electronic Commerce Co., Ltd.	b	79,812,660	(0.5S)	12,191	12,191	-	-	1	158,825,320	N	Y
Hainan Shengwei Electronic Commerce Co., Ltd.	b	79,812,660	(0.5S)	12,191	12,191	-	-	1	158,825,320	N	Y
Huan Shengwei Electronic Commerce Co., Ltd.	b	79,812,660	(0.5S)	12,191	12,191	-	-	1	158,825,320	N	Y
Jingwei Hanyuan Trading Co., Ltd.	b	79,812,660	(0.5S)	46,000,000	(0.5S)	46,000,000	-	1	158,825,320	N	Y
Jingwei Hanyuan Trading Co., Ltd.	b	79,812,660	(0.5S)	46,000,000	(0.5S)	46,000,000	-	1	158,825,320	N	Y

(Continued)

| No.
(Note 1) | Endorsement/
Guarantee Provider | Endorsed/Guarantee | | Limit on Endorsement/
Guarantee Given on Behalf
of Each Party (Note 3) | Maximum Amount
Endorsed/
Guaranteed During the
Period | Outstanding Endorsement/
Guarantee at the End of
the Period | Actual Borrowing Amount | Amount Endorsed/
Guaranteed by Collateral | Ratio of
Accumulated
Endorsement/
Guarantee to Net
Equity in Letter
Financial Statements (%) | Aggregate Endorsement/
Guarantee Limit
(Note 3) | Endorsement/
Guarantee Given by
Subsidiaries on
Behalf of Parent
(Note 4) | Endorsement/
Guarantee Given on
Behalf of Companies
in Mainland China
(Note 4) | Note | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | Name | Relationship
(Note 2) | | | | | | | | | | | | | |
| 3 | Pea Sheng (China) Investment Group Co., Ltd. | Shengbei Pea-Yuen Sport Products Business Trading Co., Ltd. | b | $ 30,311,700 | $ 1,321,732 | $ 1,321,732 | $ 19,750 | $ - | 9 | $ 59,841,333 | N | N | Y | | | |
| | | Hefei Peezun Sporting Goods Co., Ltd. | b | 30,311,700 | (ESB) 380,080,000 | (ESB) 293,900,000 | (ESB) 4,392,700 | - | - | 59,841,333 | N | N | Y | | | |
| | | Shanxi Peusheng Trading Co., Ltd. | b | 30,311,700 | (ESB) 31,030,000 | (ESB) 16,830,000 | (ESB) 12,590,661 | - | - | 59,841,333 | N | N | Y | | | |
| | | Tuzang Yue Shen Sporting Goods Co., Ltd. | b | 30,311,700 | (ESB) 13,725,000 | (ESB) 13,725,000 | (ESB) 2,076,631 | - | - | 59,841,333 | N | N | Y | | | |
| | | Nizun YYSPORTS Sport Products Co., Ltd. | b | 30,311,700 | (ESB) 6,615,000 | (ESB) 6,615,000 | (ESB) 1,679 | - | - | 59,841,333 | N | N | Y | | | |
| | | Qingdao Pea-Sheng International Sport Products Co., Ltd. | b | 30,311,700 | (ESB) 20,080,000 | (ESB) 20,080,000 | (ESB) 139,631 | - | 1 | 59,841,333 | N | N | Y | | | |
| | | Shengbei Shengdao Sports Goods Company Limited | b | 30,311,700 | (ESB) 19,170 | (ESB) 19,170 | (ESB) 30,160 | - | 1 | 59,841,333 | N | N | Y | | | |
| | | Shengbei Shengdian Sports Goods Company Limited | b | 30,311,700 | (ESB) 10,640 | (ESB) 678,400 | (ESB) 678,400 | - | 4 | 59,841,333 | N | N | Y | | | |
| | | Shengbei Shengjie Sports Goods Co., Ltd. | b | 30,311,700 | (ESB) 280,080,000 | (ESB) 199,800,000 | (ESB) 57,122 | - | 6 | 59,841,333 | N | N | Y | | | |
| | | Changdu YYSPORTS Sport Products Co., Ltd. | b | 30,311,700 | (ESB) 197,620,000 | (ESB) 197,620,000 | (ESB) 57,122 | - | 1 | 59,841,333 | N | N | Y | | | |
| | | Kanshan Bao Kaen Smart Chain Information Technology Co. | b | 30,311,700 | (ESB) 22,080,000 | (ESB) 22,080,000 | (ESB) 22,080,000 | - | 1 | 59,841,333 | N | N | Y | | | |
| | | Shengbei Dongdijie Sporting Goods Development Co., Ltd. | b | 30,311,700 | (ESB) 2,080,000 | (ESB) 2,080,000 | (ESB) 4,406 | - | - | 59,841,333 | N | N | Y | | | |
| | | Harbin Shengdao Sporting Goods Co., Ltd. | b | 30,311,700 | (ESB) 2,080 | (ESB) 2,080 | (ESB) 2,080 | - | - | 59,841,333 | N | N | Y | | | |
| | | Dalian YYSPORTS Sport Industrial Development Co., Ltd. | b | 30,311,700 | (ESB) 525,000 | (ESB) 525,000 | (ESB) 200,461 | - | - | 59,841,333 | N | N | Y | | | |
| | | Bao Shang Dan Ji (Beijing) Trading Company Ltd. | b | 30,311,700 | (ESB) 13,034 | (ESB) 13,034 | (ESB) 1,621 | - | - | 59,841,333 | N | N | Y | | | |
| | | Zhejiang Shengdian Sporting Goods Co., Ltd. | b | 30,311,700 | (ESB) 2,080,000 | (ESB) 2,080,000 | (ESB) 4,076 | - | - | 59,841,333 | N | N | Y | | | |
| | | Fujian Pea Yuan Sporting Goods Co., Ltd. | b | 30,311,700 | (ESB) 5,084,000 | (ESB) 5,084,000 | (ESB) 1,104,000 | - | - | 59,841,333 | N | N | Y | | | |
| | | Jiangxi Bao Yuan Trade Co., Ltd. | b | 30,311,700 | (ESB) 1,084 | (ESB) 1,084 | (ESB) 444 | - | - | 59,841,333 | N | N | Y | | | |
| | | Gaizhou Pea-Sheng Sport Products Co., Ltd. | b | 30,311,700 | (ESB) 210,000 | (ESB) 210,000 | (ESB) 11,999 | - | - | 59,841,333 | N | N | Y | | | |
| | | Sanda (Changdu) Trading Co., Ltd. | b | 30,311,700 | (ESB) 477 | (ESB) 477 | (ESB) 477 | - | - | 59,841,333 | N | N | Y | | | |
| | | Yue Shen (Tuzong) Footwear Co., Ltd. | b | 30,311,700 | (ESB) 48 | (ESB) 48 | (ESB) 48 | - | - | 59,841,333 | N | N | Y | | | |
| | | Kanshan Tuzong Premium Trading Co., Ltd. | b | 30,311,700 | (ESB) 10,084 | (ESB) 10,084 | (ESB) 10,084 | - | - | 59,841,333 | N | N | Y | | | |
| | | Nizun Echelle Co., Ltd. | b | 30,311,700 | (ESB) 10,084 | (ESB) 10,084 | (ESB) 10,084 | - | - | 59,841,333 | N | N | Y | | | |
| | | Jianguang Banyuan Sports Goods Co., Ltd. | b | 30,311,700 | (ESB) 10,084 | (ESB) 10,084 | (ESB) 10,084 | - | - | 59,841,333 | N | N | Y | | | |

Note 1: The Company is coded as follows:
a. The Company is coded "0".
b. The revenue is coded consecutively beginning from "1" in the order presented in the table above.

Note 2: Relationship for guarantee provider and guarantee are as follows:
a. Business relationship.
b. A company to which the Company directly and indirectly holds more than 50% of the voting shares.
c. A company that directly and indirectly holds more than 50% of the voting shares in the Company.
d. A company to which the Company directly and indirectly holds more than 90% of the voting shares.
e. A company which is contracted obligations by providing initial/endorsement/guarantee for another company in the same industry or for joint facilities for purposes of undertaking a construction project.
f. A company where all capital contributing shareholders make endorsements/guarantees for their jointly invested company in proportion to their shareholding percentages.
g. A company whose companies in the same industry provide among themselves joint and several security for a performance/guarantee of a sales contract for pre-construction homes pursuant to the Consumer Protection Act for each other.

Note 3: According to the Company's procedures for the Management of Endorsements and Guarantors, the aggregate amount of endorsements/guarantees provided by the Company shall not exceed 200% of its net worth. Meanwhile, the amount of endorsements/guarantees provided by the Company for any single entity shall not exceed 100% of the Company's net worth. The aggregate amount of endorsements/guarantees provided by the Yue Sheng International (Buildings) Limited shall not exceed 100% of its net worth. Meanwhile, the amount of endorsements/guarantees provided by the Company for any single entity shall not exceed 40% of the Company's net worth. The aggregate amount of endorsements/guarantees provided by the Pea Sheng International (Buildings) Limited shall not exceed 400% of its net worth. Meanwhile, the amount of endorsements/guarantees provided by the Company for any single entity shall not exceed 200% of the Company's net worth. The aggregate amount of endorsements/guarantees provided by the Pea Sheng (China) Investment Group Co., Ltd. shall not exceed 400% of its net worth. Meanwhile, the amount of endorsements/guarantees provided by the Company for any single entity shall not exceed 200% of the Company's net worth.

Note 4: Endorsement/guarantee given by listed parent on behalf of subsidiaries, by subsidiaries on behalf of listed parent, and on behalf of companies in mainland China is coded "Y".

(Concluded)

TABLE 3

POU CHEN CORPORATION AND SUBSIDIARIES

SIGNIFICANT MARKETABLE SECURITIES HELD

DECEMBER 31, 2025

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

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account	December 31, 2025
				Shares	Carrying Amount	Percentage of Ownership	Fair Value
Pou Chen Corporation	Ordinary shares
	Mega Financial Holding Company Ltd.	None	Financial assets at FVTOCI - current	208,288,378	$ 8,331,535	1.40	$ 8,331,535
	Taiwan Pailho Limited	None	Financial assets at FVTOCI - current	615,473	31,081	0.21	31,081
	Zhuyuan Venture Capital Co., Ltd.	None	Financial assets at FVTOCI - non-current	2,925,000	41,949	10.71	41,949
	New Loolan Corporation., Ltd.	None	Financial assets at FVTOCI - non-current	100,000	781	4.00	781
	Bonds
The 10-years U.S. dollars subordinated corporate bonds issued by Cathay Life Insurance Co., Ltd.	None	Financial assets at amortized cost - non-current	-	94,290 (US$ 3,000,000)	-	94,290 (US$ 3,000,000)
Wealthplus Holdings Limited	Ordinary shares
	Golden Brands Developments Ltd.	None	Financial assets at FVTOCI - non-current	12,873,905	25,493 (US$ 811,102)	5.88	25,493 (US$ 811,102)
	Great Team Backend Foundry, Inc.	None	Financial assets at FVTOCI - non-current	1,352,511	43,849 (US$ 1,395,129)	7.05	43,849 (US$ 1,395,129)
	Bonds
	Senior Unsecured Corporate Bond Issued by Emirates NBD Bank PJSC (XS2297529799)	None	Financial assets at amortized cost - current	-	146,323 (US$ 4,655,520)	-	146,784 (US$ 4,670,188)
	Senior debt issued by the BPCE Group. (FR001400MWP6)	None	Financial assets at amortized cost - non-current	-	115,274 (US$ 3,667,657)	-	117,250 (US$ 3,730,511)
	6-year callable fixed-rate bond issued by Crédit Agricole CIB. (XS2992750609)	None	Financial assets at amortized cost - non-current	-	225,353 (US$ 7,170,000)	-	233,781 (US$ 7,438,158)
	Senior debt issued by Citigroup Inc. (XS3125311780)	None	Financial assets at amortized cost - non-current	-	282,870 (US$ 9,000,000)	-	282,630 (US$ 8,992,350)
	10-year callable fixed-rate bond issued by Citigroup Inc. (XS2792128436)	None	Financial assets at amortized cost - non-current	-	282,870 (US$ 9,000,000)	-	285,696 (US$ 9,089,910)
	7-year callable fixed-rate bond issued by Citigroup Inc. (XS2792107604)	None	Financial assets at amortized cost - non-current	-	282,870 (US$ 9,000,000)	-	285,144 (US$ 9,072,360)
	7-year callable fixed-rate bond issued by Citigroup Inc. (XS2792117157)	None	Financial assets at amortized cost - non-current	-	282,870 (US$ 9,000,000)	-	285,009 (US$ 9,068,040)
	7-year callable fixed-rate bond issued by Citigroup Inc. (XS2792116340)	None	Financial assets at amortized cost - non-current	-	157,150 (US$ 5,000,000)	-	158,272 (US$ 5,035,700)
	7-year callable fixed-rate bond issued by Citigroup Inc. (XS2792128352)	None	Financial assets at amortized cost - non-current	-	157,150 (US$ 5,000,000)	-	158,341 (US$ 5,037,900)
	6-year callable fixed-rate bond issued by Citigroup Inc. (XS2792106200)	None	Financial assets at amortized cost - non-current	-	261,410 (US$ 8,317,200)	-	261,397 (US$ 8,316,784)
	6-year callable fixed-rate bond issued by Goldman Sachs Finance Corp International Ltd. (XS2481703010)	None	Financial assets at amortized cost - non-current	-	225,353 (US$ 7,170,000)	-	224,409 (US$ 7,139,958)
	Senior debt issued by Goldman Sachs Financial Company International. (XS2814168048)	None	Financial assets at amortized cost - non-current	-	282,870 (US$ 9,000,000)	-	277,193 (US$ 8,819,370)
	10-year callable fixed-rate bond issued by JPMorgan Chase & Co. (XS1449453288)	None	Financial assets at amortized cost - non-current	-	282,870 (US$ 9,000,000)	-	276,109 (US$ 8,784,900)
	10-year callable fixed-rate bond issued by JPMorgan Chase & Co. (XS1449450268)	None	Financial assets at amortized cost - non-current	-	282,870 (US$ 9,000,000)	-	276,307 (US$ 8,791,200)
	10-year callable fixed-rate bond issued by JPMorgan Chase & Co. (XS1449430823)	None	Financial assets at amortized cost - non-current	-	282,870 (US$ 9,000,000)	-	276,392 (US$ 8,793,900)
	10-year callable fixed-rate bond issued by JPMorgan Chase & Co. (XS1449422100)	None	Financial assets at amortized cost - non-current	-	282,870 (US$ 9,000,000)	-	281,880 (US$ 8,968,500)
	Senior debt issued by Natixis S.A. (XS3098259263)	None	Financial assets at amortized cost - non-current	-	282,870 (US$ 9,000,000)	-	281,034 (US$ 8,941,590)

(Continued)

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account	December 31, 2025
				Shares	Carrying Amount	Percentage of Ownership	Fair Value
Wealthplus Holdings Limited	Bonds
	20-year callable fixed-rate bond issued by Royal Bank of Canada (RBC) (XS3088727261)	None	Financial assets at amortized cost - non-current	-	$ 282,870	-	$ 271,414
	10-year callable fixed-rate bond issued by Royal Bank of Canada (RBC) (XS3151518050)	None	Financial assets at amortized cost - non-current	-	282,870	-	280,749
	10-year callable fixed-rate bond issued by Goldman Group. (XS3139509213)	None	Financial assets at amortized cost - non-current	-	282,870	-	280,749
	Senior debt issued by Sumitomo Mitsui Financial Group, Inc. (SMFG) (US86562MDV30)	None	Financial assets at amortized cost - non-current	-	286,607	-	286,249
	Senior debt issued by Mitsubishi UFJ Financial Group, Inc. (MUFG) (US66822DG66)	None	Financial assets at amortized cost - non-current	-	292,660	-	292,515
	Senior debt issued by Mitsubishi UFJ Financial Group, Inc. (MUFG) (US606822DN18)	None	Financial assets at amortized cost - non-current	-	622,503	-	62,597
	Senior debt issued by the Barclays Group. (US06738ECK91)	None	Financial assets at amortized cost - non-current	-	164,291	-	166,265
	Senior debt issued by the Barclays Group. (US06738ECR45)	None	Financial assets at amortized cost - non-current	-	1222,503	-	127,535
	Senior debt issued by the Barclays Group. (US06738EC91)	None	Financial assets at amortized cost - non-current	-	199,070	-	10,260,991
	Senior debt issued by Royal Bank of Canada (RBC) (US78016HZZ62)	None	Financial assets at amortized cost - non-current	-	293,030	-	293,102
	Senior debt issued by Royal Bank of Canada (RBC) (US78016HZZ62)	None	Financial assets at amortized cost - non-current	-	293,030	-	293,102
	Senior debt issued by the Barclays Group. (US056738ECY95)	None	Financial assets at amortized cost - non-current	-	191,251	-	192,809
	Senior debt issued by the Barclays Group. (US056738EBV05)	None	Financial assets at amortized cost - non-current	-	191,251	-	192,809
	Senior debt issued by the Barclays Group. (US056738EBV05)	None	Financial assets at amortized cost - non-current	-	289,386	-	290,242
	Senior debt issued by the Barclays Group. (US056738EBV05)	None	Financial assets at amortized cost - non-current	-	289,386	-	290,242
	Senior debt issued by the Barclays Group. (US056738EBV05)	None	Financial assets at amortized cost - non-current	-	291,419	-	291,927
	Senior debt issued by BHP Paribas S.A. (US09659X2V32)	None	Financial assets at amortized cost - non-current	-	445,328	-	455,865
	Senior debt issued by BHP Paribas S.A. (US09659X2X97)	None	Financial assets at amortized cost - non-current	-	290,336	-	291,744
	Senior debt issued by BHP Paribas S.A. (US09659X3B68)	None	Financial assets at amortized cost - non-current	-	289,336	-	291,744
	Senior debt issued by Credit Agricole S.A. (US22536PAJ03)	None	Financial assets at amortized cost - non-current	-	683,572	-	696,114
	Senior debt issued by Credit Agricole S.A. (US22536PAJ58)	None	Financial assets at amortized cost - non-current	-	250,826	-	253,602
	Senior debt issued by Société Générale S.A. (US83368TBR86)	None	Financial assets at amortized cost - non-current	-	322,782	-	327,088
	Senior debt issued by Société Générale S.A. (US83368TBR96)	None	Financial assets at amortized cost - non-current	-	158,081	-	159,268
	Senior debt issued by Société Générale S.A. (US83368TBW71)	None	Financial assets at amortized cost - non-current	-	119,269	-	124,607
	Senior debt issued by Citigroup Inc. (US172967MP39)	None	Financial assets at amortized cost - non-current	-	349,898	-	324,607
	Senior debt issued by Bank of America. (US06051GGA13)	None	Financial assets at amortized cost - non-current	-	309,008	-	310,808
	Senior debt issued by Bank of America. (US06051GML04)	None	Financial assets at amortized cost - non-current	-	162,947	-	164,051
	Senior debt issued by Bank of America. (US06051GML04)	None	Financial assets at amortized cost - non-current	-	162,947	-	164,051
	Senior debt issued by Bank of America. (US06051GLG28)	None	Financial assets at amortized cost - non-current	-	161,553	-	164,051
	Senior debt issued by Santander Holdings USA, Inc. (US80282KBJ43)	None	Financial assets at amortized cost - non-current	-	240,749	-	220,729
	Senior debt issued by Santander Holdings USA, Inc. (US80282KBM71)	None	Financial assets at amortized cost - non-current	-	240,749	-	220,729

(Continued)

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account	December 31, 2025
				Shares	Carrying Amount	Percentage of Ownership	Fair Value
Wealthplus Holdings Limited	Bonds
	Senior debt issued by Santander Holdings USA, Inc. (US80282KBN54)	None	Financial assets at amortized cost - non-current	-	$ 160,072	-	$ 160,072
				(US$ 5,092,965)	(US$ 5,113,000)
	Senior debt issued by Santander Holdings USA, Inc. (US80282KBF21)	None	Financial assets at amortized cost - non-current	-	550,925	-	557,029
				(US$ 17,528,633)	(US$ 17,722,856)
	Senior debt issued by Goldman Sachs Financial Company International. (XS2688673172)	None	Financial assets at amortized cost - non-current	-	92,551	-	93,960
				(US$ 2,944,666)	(US$ 2,989,488)
	Senior debt issued by Goldman Group. (US38141GB292)	None	Financial assets at amortized cost - non-current	-	161,134	-	161,258
				(US$ 5,126,767)	(US$ 5,130,717)
	Senior debt issued by Goldman Group. ((US38141GC365)	None	Financial assets at amortized cost - non-current	-	293,300	-	292,767
				(US$ 9,331,856)	(US$ 9,314,902)
	Senior debt issued by Goldman Sachs Bank. (US38141GWB66)	None	Financial assets at amortized cost - non-current	-	312,586	-	313,546
				(US$ 9,945,458)	(US$ 9,976,000)
	Senior debt issued by National Westminster Bank Plc. (USG6382G7N69)	None	Financial assets at amortized cost - non-current	-	158,000	-	160,372
				(US$ 5,027,042)	(US$ 5,102,500)
	Senior debt issued by National Westminster Bank Plc. (US639057AV00)	None	Financial assets at amortized cost - non-current	-	290,650	-	291,069
				(US$ 9,247,547)	(US$ 9,260,878)
	Senior debt issued by National Westminster Bank Plc. (US639057AS70)	None	Financial assets at amortized cost - non-current	-	158,281	-	160,640
				(US$ 5,035,968)	(US$ 5,111,050)
	Senior debt issued by ING Group. (US456837BL64)	None	Financial assets at amortized cost - non-current	-	255,789	-	259,655
				(US$ 8,138,365)	(US$ 8,261,360)
	Senior debt issued by ING Group. (US456837BR35)	None	Financial assets at amortized cost - non-current	-	291,335	-	290,638
				(US$ 9,269,328)	(US$ 9,247,140)
	Senior debt issued by Nomura Holdings, Inc. (US65535HBC25)	None	Financial assets at amortized cost - non-current	-	322,009	-	327,317
				(US$ 10,245,274)	(US$ 10,414,150)
	Senior debt issued by Nomura Holdings, Inc. (US65535HBZ10)	None	Financial assets at amortized cost - non-current	-	287,976	-	287,727
				(US$ 9,162,462)	(US$ 9,154,528)
	Senior debt issued by Wells Fargo & Company. (US95000U3L56)	None	Financial assets at amortized cost - non-current	-	160,302	-	160,479
				(US$ 5,100,275)	(US$ 5,105,933)
	Senior debt issued by Wells Fargo & Company. (US95000U3P60)	None	Financial assets at amortized cost - non-current	-	162,428	-	163,039
				(US$ 5,167,937)	(US$ 5,187,356)
	Senior debt issued by Wells Fargo & Company. (US95000U3A91)	None	Financial assets at amortized cost - non-current	-	252,860	-	254,395
				(US$ 8,045,180)	(US$ 8,094,030)
	Senior debt issued by Standard Chartered PLC. (USG84228FQ64)	None	Financial assets at amortized cost - non-current	-	162,558	-	163,467
				(US$ 5,172,058)	(US$ 5,201,000)
	Senior debt issued by Standard Chartered PLC. (USG84228GG73)	None	Financial assets at amortized cost - non-current	-	287,282	-	288,857
				(US$ 9,140,378)	(US$ 9,190,498)
	Senior debt issued by HSBC Holdings plc. (US404280ED71)	None	Financial assets at amortized cost - non-current	-	291,156	-	292,012
				(US$ 9,263,622)	(US$ 9,290,800)
	Senior debt issued by HSBC Holdings plc. (US404280EW52)	None	Financial assets at amortized cost - non-current	-	155,873	-	158,636
				(US$ 4,959,371)	(US$ 5,047,293)
	Senior debt issued by HSBC Holdings plc. (US404280ED71)	None	Financial assets at amortized cost - non-current	-	160,878	-	163,153
				(US$ 5,118,624)	(US$ 5,191,000)
	Senior debt issued by HSBC Holdings plc. (US404280EW52)	None	Financial assets at amortized cost - non-current	-	291,396	-	292,069
				(US$ 9,271,269)	(US$ 9,292,683)
	Senior debt issued by HSBC Holdings plc. (US404280EG03)	None	Financial assets at amortized cost - non-current	-	853,212	-	879,886
				(US$ 27,146,417)	(US$ 27,995,095)
	Senior debt issued by HSBC Holdings plc. (US404280DH94)	None	Financial assets at amortized cost - non-current	-	161,399	-	163,452
				(US$ 5,135,192)	(US$ 5,200,500)
	Senior debt issued by UBS Group AG. (USH42097EX11)	None	Financial assets at amortized cost - non-current	-	610,611	-	624,864
				(US$ 19,427,635)	(US$ 19,881,144)
	Senior debt issued by Mizuno Financial Group, Inc. (US60687YDD85)	None	Financial assets at amortized cost - non-current	-	643,424	-	651,269
				(US$ 20,471,650)	(US$ 20,721,245)
	Senior debt issued by Mizuno Financial Group, Inc. (US60687YDL02)	None	Financial assets at amortized cost - non-current	-	159,680	-	159,484
				(US$ 5,080,506)	(US$ 5,074,250)
	Senior debt issued by Mizuno Financial Group, Inc. (US60687YCZ07)	None	Financial assets at amortized cost - non-current	-	194,286	-	196,284
				(US$ 6,181,539)	(US$ 6,245,123)
	Senior debt issued by Morgan Stanley (US61748UAE29)	None	Financial assets at amortized cost - non-current	-	292,103	-	292,320
				(US$ 9,293,762)	(US$ 9,300,670)
	Senior debt issued by Morgan Stanley (US61747YFU47)	None	Financial assets at amortized cost - non-current	-	158,929	-	159,307
				(US$ 5,056,609)	(US$ 5,068,632)

(Continued)

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account	December 31, 2025
				Shares	Carrying Amount	Percentage of Ownership	Fair Value
Wealthplus Holdings Limited	Structured products
Redeemable structured deposits offered by Crédit Agricole CIB.	None	Financial assets at amortized cost - non-current	-	$ 707,175
(US$ 22,500,000)	-	$ 707,175
(US$ 22,500,000)
Pou Shine Investments Co., Ltd.	Ordinary shares
Taiwan Paiho Limited
Mega Financial Holding Company Ltd.	None
None	Financial assets at FVTOCI - current
Financial assets at FVTOCI - current	775,170
135,928,701	39,147
5,437,148	0.26
0.92	39,147
5,437,148
Pou Yuen Technology Co., Ltd.	Ordinary shares
Mega Financial Holding Company Ltd.	None	Financial assets at FVTOCI - current	18,510,895	740,436	0.12	740,436
Barits Development Corporation	Ordinary shares
Mega Financial Holding Company Ltd.
Huan Hsieh Company Ltd.	None
None	Financial assets at FVTOCI - current
Financial assets at FVTOCI - non-current	145,269,116
20,000	5,810,765
-	0.98
1.00	5,810,765
-
Song Ming Investments Co., Ltd.	Ordinary shares
Mega Financial Holding Company Ltd.	None	Financial assets at FVTOCI - current	53,683,713	2,147,349	0.36	2,147,349
Windsor Entertainment Co., Ltd.	Ordinary shares
Taichung International Entertainment Corporation	None	Financial assets at FVTOCI - non-current	3	15,900	0.09	15,900
Pou Yii Development Co., Ltd.	Ordinary shares
Mega Financial Holding Company Ltd.	None	Financial assets at FVTOCI - current	43,529,856	1,741,194	0.29	1,741,194
Yue Yuen Industrial (Holdings) Limited	Ordinary shares
Risheng Chemical Industry Co., Ltd.
Taiwan Paiho Limited
Keg Big Dome Sports Co., Ltd.
Bonds	None
None
None
None	Financial assets at FVTOCI - current
Financial assets at FVTOCI - non-current
Financial assets at FVTOCI - non-current	3,967,281
(US$ 2,336,154)
9,528,228
1,000,000	73,425
2,336,154
481,376
11,303
(US$ 359,638)	3.99
3.20
11.76	73,425
2,336,154
481,376
11,303
(US$ 359,638)
	10-year Subordinated Bonds Issued by Cathay Life Insurance Co., Ltd.
(TW000B996073)
10-year Subordinated Bonds Issued by Fubon Life Insurance Co., Ltd.
(TW000B995075)
10-year Subordinated Bonds Issued by Fubon Life Insurance Co., Ltd.
(TW000B995117)
10-year Subordinated Bonds Issued by Fubon Life Insurance Co., Ltd.
(TW000B995133)
10-year Subordinated Bonds Issued by Fubon Life Insurance Co., Ltd.
(TW000B995158)
RMB 6 billion 2.50% Senior Notes due 2035 issued by Tencent Holdings Limited (HK0001193041)	None
None
None
None
None
None	Financial assets at amortized cost - non-current
Financial assets at amortized cost - non-current
Financial assets at amortized cost - non-current
Financial assets at amortized cost - non-current
Financial assets at amortized cost - non-current	-
-
-
-
-
-
-
-	90,038
2,864,700
100,042
3,183,000
50,021
1,591,500
220,104
7,957,501
250,104
7,957,501
224,153
(RMB 49,733,745)	-
-
-
-
-
-
-
-
-	90,305
100,055
50,345
249,962
249,992
197,456
(RMB 48,899,388)

Note: The marketable securities stated here are related to shares, debentures and beneficiary certificates and the derivative products caused by those of "IFRS 9 Financial Instruments". For information on the investments in subsidiaries, associates and joint ventures please refer to Tables 7 and 8.

(Concluded)

TABLE 4

POU CHEN CORPORATION AND SUBSIDIARIES

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NTS100 MILLION OR 20% OF THE PAID-IN CAPITAL

FOR THE YEAR ENDED DECEMBER 31, 2025

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

Buyer	Related Party	Relationship	Transaction Details	Abnormal Transaction	Notes/Accounts Payable or Receivable	Note
Purchase/Sale	Amount	% to Total	Payment Terms	Unit Price	Payment Terms	Ending Balance
Pou Chen Corporation	Yue Yuen Industrial (Holdings) Limited	Subsidiary	Sales	$ (8,598,836)	(99)	D/A 45 days
Chand Yang Material Corp.	The associate	Purchases	112,589	3	D/A 45 days	-
Barits Development Corporation	Yue Yuen Industrial (Holdings) Limited	Sister companies	Sales	(155,400)	(100)	D/A 45 days
Yue Yuen Industrial (Holdings) Limited	Pou Chen Corporation	The parent company	Purchases	8,598,836	6	D/A 45 days
Barits Development Corporation	Sister companies	Purchases	(US$ 276,165,912)	-	D/A 45 days	-
Ka Yuen Rubber Factory Limited	The joint venture	Purchases	155,400	-	D/A 45 days	-
Twinways Investments Limited	The joint venture	Purchases	2,302,156	2	D/A 45 days	-
Cohen Enterprises Inc.	The joint venture	Purchases	1,884,520	1	D/A 45 days	-
Top Units Developments Ltd.	The joint venture	Purchases	(US$ 60,281,000)	-	D/A 45 days	-
San Fang Chemical Industry Co., Ltd.	The joint venture	Purchases	198,206	-	D/A 45 days	-
Nan Pao Resins Chemical Co., Ltd.	The associate	Purchases	(US$ 6,391,000)	-	D/A 45 days	-
Cohen Enterprises Inc.	The joint venture	Purchases	642,772	-	D/A 45 days	-
San Fang Chemical Industry Co., Ltd.	The associate	Purchases	(US$ 20,654,000)	-	D/A 45 days	-
Nan Pao Resins Chemical Co., Ltd.	The associate	Purchases	1,732,580	1	D/A 45 days	-
Cohen Enterprises Inc.	The joint venture	Purchases	(US$ 54,819,000)	-	D/A 45 days	-
Pou Sheng International (Holdings) Limited	Shandong Liwei Economic and Trade Co., Ltd.	Other related parties	Sales	(147,850)	-	D/A 30 days

TABLE 5

POU CHEN CORPORATION AND SUBSIDIARIES

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	Financial Statement Account and Ending Balance	Turnover Rate	Overdue		Amount Received in Subsequent Period	Allowance for Impairment Loss
					Amount	Actions Taken
Pou Chen Corporation	Yue Yuen Industrial (Holdings) Limited	The subsidiary	$ 1,333,707	6	$ -	-	$ 1,281,296	$ -

95 -

TABLE 6

POU CHEN CORPORATION AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

No. (Note 1)	Investee Company	Counterparty	Relationship (Note 2)	Transaction Details
				Financial Statement Accounts	Amount	Payment Terms	% of Total Sales or Assets (Note 3)
0	Pou Chen Corporation	Yue Yuen Industrial (Holdings) Limited	a	Operating revenue	$ 8,598,836	D/A 45 days	3
		Yue Yuen Industrial (Holdings) Limited	a	Accounts receivable	1,333,707	D/A 45 days	-
1	Barits Development Corporation	Yue Yuen Industrial (Holdings) Limited	c	Operating revenue	155,400	D/A 45 days	-
		Yue Yuen Industrial (Holdings) Limited	c	Accounts receivable	31,839	D/A 45 days	-

Note 1: The Company and its subsidiaries are coded as follows:
a. The Company is coded "0".
b. The subsidiaries are coded consecutively beginning from "1" in the order presented in the table above.

Note 2: Nature of relationship is as follows:
a. From the parent company to its subsidiary.
b. From a subsidiary to its parent company.
c. Between subsidiaries.

Note 3: The percentage calculation is based on the consolidated total operating revenue or total assets. For balance sheet items, each item's period-end balance is shown as a percentage to consolidated total assets as of December 31, 2025. For profit or loss items, cumulative amounts are shown as a percentage to the consolidated total operating revenue for the year ended December 31, 2025.

TABLE 7

POU CHEN CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTEES

FOR THE YEAR ENDED DECEMBER 31, 2025

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

Investor Company	Investor Company	Location	Main Businesses and Products	Original Investment Amount			As of December 31, 2025			Net Income (Loss) of the Investor	Share of Profit (Loss)
				December 31, 2025	December 31, 2024	Shares	%	Carrying Amount
Pou Chen Corporation	Wealthplus Holdings Limited	British Virgin Islands	Investing in footwear, electronic and peripheral products	$ 295,429	$ 295,429	9,222,000	100.00	$ 108,359,170	$ 7,725,777	$ 7,737,500
			(US$ 9,222,000)	(US$ 9,222,000)				(US$ 3,447,635,047)	(US$ 248,626,933)	(US$ 249,003,280)
	Win Fortune Investments Limited	British Virgin Islands	Investing activities	3,230	3,230	100,000	100.00	2,649,105	132,233	132,485
			(US$ 100,000)	(US$ 100,000)				(US$ 84,285,869)	(US$ 4,256,097)	(US$ 4,264,181)
	Windsor Entertainment Co., Ltd.	ROC	Entertainment and resort operations	71,000	71,000	7,100,000	100.00	87,541	2,705	12,618)
	Pou Shine Investments Co., Ltd.	ROC	Investing activities	1,124,667	1,124,667	133,094,460	100.00	5,195,056	234,697	234,697
	Pun Asia Insurance Services Co., Ltd.	ROC	Agency of property and casualty insurance	5,000	5,000	-	100.00	983	(5,822)	(5,822)
	Bartis Development Corporation	ROC	Import and export of shoe-related materials and investing activities	2,117,293	2,117,293	388,316,812	99.49	12,776,930	338,360	336,719
	Pou Yuan Technology Co., Ltd.	ROC	Rental of real estate	966,450	966,450	30,456,252	97.82	617,416	42,513	29,766
	Pou Arch International Development Enterprise Inc.	ROC	Design and manufacture of footwear products	2,643,184	2,643,184	20,000,000	100.00	250,600	7,075	7,330
	Pou Yii Development Co., Ltd.	ROC	Rental and sale of real estate	40,320	40,320	8,975,810	15.00	265,600	62,371	9,356
	Wang Yi Construction Co., Ltd.	ROC	Construction	3,636	3,356	185,375	7.82	-	(2,630)	255
Ruan Chen Investment Holding Co., Ltd.	ROC	Investment holding	15,742,000	15,652,000	7,288,500,000	20.00	51,389,811	24,597,988	4,919,598
Nan Shan Life Insurance Co., Ltd.	ROC	Sale of life insurance	370	370	10,634	-	385	27,932,366	28
Wealthplus Holdings Limited	Yue Yuen Industrial (Holdings) Limited	Hong Kong	Manufacturing and sale of athletic and casual footwear and sports apparel	24,199,976	24,199,976	806,836,663	50.28	70,644,787	11,796,276	5,951,489
			(US$ 747,132,133)	(US$ 747,132,133)				(US$ 2,247,686,519)	(US$ 379,893,891)	(US$ 191,651,678)
	Venture Well Holdings Ltd.	British Virgin Islands	Sale of electronic components	160,000	160,000	4,798,114	31.55	9,386	(465)	(147)
Win Fortune Investments Limited	Yue Yuen Industrial (Holdings) Limited	Hong Kong	Manufacturing and sale of athletic and casual footwear and sports apparel	404,026	404,026	17,307,172	1.08	1,515,006	11,796,276	127,662
			(US$ 12,769,118)	(US$ 12,769,118)				(US$ 48,234,350)	(US$ 379,893,891)	(US$ 4,111,023)
Pou Shine Investments Co., Ltd.	Bartis Development Corporation	ROC	Import and export of shoe-related materials and investing activities	2,583	2,583	498,948	0.13	16,365	338,360	432
	Nan Shan Life Insurance Co., Ltd.	ROC	Sale of life insurance	189,772	189,772	13,624,400	0.09	283,016	27,932,366	25,893
Bartis Development Corporation	Song Ming Investments Co., Ltd.	ROC	Investing activities	1,218,879	1,218,879	120,486,400	100.00	3,546,333	134,197	134,197
	Wang Yi Construction Co., Ltd.	ROC	Construction	43,042	62,787	2,243,750	89.75	36,270	(2,630)	(2,360)
	Pou Chin Development Co., Ltd.	ROC	Agency of land demarcation	200,000	200,000	20,000,000	100.00	199,862	586	586
Song Ming Investments Co., Ltd.	Nan Shan Life Insurance Co., Ltd.	ROC	Sale of life insurance	189,920	189,920	13,635,035	0.09	283,321	27,932,366	25,921
	Pou Yii Development Co., Ltd.	ROC	Rental and sale of real estate	262,500	262,500	44,869,050	75.00	1,328,002	62,371	46,779
Pou Yuan Technology Co., Ltd.	ROC	Rental of real estate	21,240	21,240	619,220	1.99	19,424	42,513	446
Pou Yuan Technology Co., Ltd.	Pearl Dove International Limited	British Virgin Islands	Investment holding	78,348	78,348	25,901	100.00	118,160	4,664	4,664
				(US$ 2,573,883)	(US$ 2,573,883)			(US$ 3,759,464)	(US$ 149,916)	(US$ 149,916)
Yue Yuan Industrial (Holdings) Limited	Eagle Nice (International) Holdings Limited	British Cayman Islands	Manufacturing of wearing apparel and clothing accessories	1,297,712	1,297,712	192,000,000	33.44	2,864,959	819,081	273,901
	Offenrich Holdings Limited	Bermuda	Manufacturing and sale of footwear	(US$ 39,972,084)	(US$ 39,972,084)			(US$ 91,153,628)	(US$ 27,472,868)	(US$ 9,186,927)
				(US$ 42,210,159)	(US$ 42,210,159)			(US$ 102,343,707)	(US$ 28,927,460)	(US$ 13,017,357)
	Prosperous Industrial (Holdings) Ltd.	British Cayman Islands	Manufacturing and sale of gym bags	583,740	583,740	252,000,000	22.50	872,081	784,378	176,485
				(US$ 18,000,000)	(US$ 18,000,000)			(US$ 27,746,773)	(US$ 25,076,742)	(US$ 5,642,267)
	Sun Fang Chemical Industry Co., Ltd.	ROC	Manufacturing and sale of synthetic leather	2,480,159	2,592,496	162,923,075	40.95	4,827,420	1,119,478	458,314
				(US$ 76,634,224)	(US$ 73,806,583)			(US$ 153,592,746)	(US$ 35,686,430)	(US$ 14,613,595)
	Nan Pan Resins Chemical Co., Ltd.	ROC	Manufacturing and sale of chemical materials	402,623	432,697	15,823,248	13.12	1,728,806	2,534,813	333,275
				(US$ 12,585,894)	(US$ 13,525,999)			(US$ 55,004,956)	(US$ 81,293,491)	(US$ 10,665,706)
	Just Lucky Investments Limited	British Virgin Islands	Property management		26,207				2,670	1,023	Sold
				(US$ 808,130)					(US$ 84,390)	(US$ 32,321)
Natural Options Limited	British Virgin Islands	Manufacturing of foam		11,144				(89)	(34)	Sold
			(US$ 343,638)					(US$ 12,729)	(US$ 1,045)
Rise Bloom International Limited	Hong Kong	Processing and sale of foam		24,312	24,312	760,000	38.00	31,863	(107)	(41)
			(US$ 760,000)	(US$ 760,000)				(US$ 1,013,793)	(US$ 1,034)	(US$ 1,034)

(Continued)

Investor Company	Location	Main Businesses and Products	Original Investment Amount			As of December 31, 2025			Net Income (Loss) of the Investor
			December 31, 2025	December 31, 2024	Shares	%	Carrying Amount
Prosperlink Limited	Samoa	Processing and sale of foam	$ 17,432	$ 17,432	570,000	38.00	$ 19,864	$ (4,885)	$ (1,856)
		(US$ 570,000)	(US$ 570,000)				(US$ 632,007)	(US$ (154,329))	(US$ (58,645))
Pou Ming Paper Products Manufacturing Co., Ltd.	British Virgin Islands	Manufacturing of paper products	66,937	66,937	1,000,000	20.00	14,360	20,433	4,087
		(US$ 2,163,800)	(US$ 2,163,800)				(US$ 456,877)	(US$ 660,589)	(US$ 132,118)
Brandblack Inc.	USA	Sale of footwear	68,762	68,762	1,135,796	31.25	-	-	-
		(US$ 2,275,000)	(US$ 2,275,000)
Jumbo Power Enterprises Limited	British Virgin Islands	Manufacturing and sale of footwear	259,742	259,742	8,000,000	50.00	393,371	(22,113)	(11,057)
		(US$ 8,000,000)	(US$ 8,000,000)				(US$ 12,515,770)	(US$ (722,174))	(US$ (361,087))
Ka Yuan Rubber Factory Limited	British Virgin Islands	Manufacturing and sale of rubber sole	322,733	322,733	10,000,000	50.00	1,018,215	534,634	267,317
		(US$ 10,000,000)	(US$ 10,000,000)				(US$ 32,396,268)	(US$ 17,159,182)	(US$ 8,579,591)
Hua Jian Industrial Holding Co., Limited	British Virgin Islands	Manufacturing and sale of women’s clothing and footwear	460,031	460,031	2,241	22.41	-	-	-
		(US$ 13,684,113)	(US$ 13,684,113)
Cohen Enterprises Inc.	British Virgin Islands	Manufacturing and sale of footwear leather products	623,276	623,276	20,000,000	50.00	198,739	(386,064)	(193,032)
		(US$ 20,215,015)	(US$ 20,215,015)				(US$ 6,323,240)	(US$ (12,365,298))	(US$ (6,182,649))
Twinways Investments Limited	British Virgin Islands	Manufacturing and sale of footwear accessory injection crepe	551,432	551,432	17,500,000	50.00	1,033,657	626,373	313,187
		(US$ 17,500,000)	(US$ 17,500,000)				(US$ 32,887,581)	(US$ 20,006,360)	(US$ 10,003,180)
Top Units Developments Ltd.	British Virgin Islands	Manufacturing of footwear accessories	418,997	418,997	5,390,000	49.00	973,884	418,422	205,027
		(US$ 14,079,196)	(US$ 14,079,196)				(US$ 30,985,819)	(US$ 13,424,164)	(US$ 6,577,840)

(Concluded)

TABLE 8

POU CHEN CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTMENTS IN MAINLAND CHINA

FOR THE YEAR ENDED DECEMBER 31, 2025

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

Investor Company	Main Businesses and Products	Paid-in Capital	Method of Investment (Note 1)	Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2025	Remittance of Funds		Accumulated Outward Remittance for Investment from Taiwan as of December 31, 2025	Net Income (Loss) of the Investor	% Ownership of (Direct or Indirect) Investment	Investment Gain (Loss) (Note 2)	Carrying Amount as of December 31, 2025	Accumulated Repatriation of Investment Income as of December 31, 2025	Note
					Outward	Inward
Great Team Backend Foundry, Inc.	Processing and manufacturing of transistors	$ 2,642,140 (US$ 88,116,600)	b	$ -	$ -	$ -	$ -	$ -	2.12	$ -	$ 43,849 (RMB 9,752,867)	$ -	(Note 3)
Yue-Shen (Taicang) Footwear Co., Ltd.	Finished shoes, semi-finished products, components and production and marketing of moulds	554,646 (US$ 17,100,000)	b	-	-	-	- (RMB 16,648,001))	32.13	16,6671 (RMB 11,483,403)) b, 1)	243,539 (RMB 54,167,848)	-
Dongguan Yuming Electronic Technology Co., Ltd.	Production and marketing of over 17 inches color-image monitor, motherboards and other products	475,745 (US$ 14,500,000)	b	-	-	-	- (RMB 9,528 2,197,873)	100.00	9,528 (RMB 2,197,873) b, 1)	350,687 (RMB 79,779,050)	-
Yue Cheng (Kun Shan) Sports Co., Ltd.	Operating sporting goods and equipment, spare parts production and marketing business	435,402 (US$ 14,200,000)	b	-	-	-	- (RMB 88,794 18,286,529)	32.13	25,959 (RMB 5,875,462) b, 1)	1,244,287 (RMB 276,754,134)	-
Dongguan Banqiao Electronic Technology Co., Ltd.	Production and marketing of other optical appliances and instruments	32,010 (US$ 1,000,000)	b	-	-	-	- (RMB 67,647 15,659,212)	100.00	67,647 (RMB 15,659,212) b, 1)	284,322 (RMB 63,238,847)	-
Poushan Paper Products Manufacturing Co., Ltd.	Production and sale of shoe inner boxes, cartons	68,901 (US$ 2,100,000)	b	-	-	-	- (RMB 9,462 2,168,354)	10.27	972 (RMB 222,600) b, 1)	10,385 (RMB 2,309,765)	-
Pouhong Footwear Industrial Ltd.	Production and operation of casual shoes, sports shoes	49,215 (US$ 1,500,000)	b	-	-	-	- (RMB 3,373 774,101)	51.36	1,732 (RMB 397,578) b, 1)	24,623 (RMB 5,476,548)	-
Shengguo Yisen Industry Co., Ltd.	Production and sale of finished shoes, semi-finished products, components and moulds	945,204 (US$ 30,390,000)	b	-	-	-	- (RMB 287,954 67,685,329)	51.36	147,093 (RMB 34,763,185) b, 1)	1,117,730 (RMB 248,605,383)	-
Bao Hong (Yangzhou) Shoes Co., Ltd.	Production of needles, woven garments, footwear and sales of self-produce products	2,591,104 (US$ 85,291,738)	b	-	-	-	- (RMB 174,000) (17,263,977))	51.36	138,417 (RMB 10,866,778)) b, 1)	311,968 (RMB 69,307,901)	-
Dong Guan Yu Yuan Mold Co., Ltd.	Production and sale of molds for non-metallic products	3,261 (US$ 100,000)	b	-	-	-	- (RMB 35 8,073)	51.36	10 (RMB 4,146) b, 1)	3,371 (RMB 749,721)	-
Zheng Shan Glory Shoes Ind., Ltd.	Production and operation of various types of leather shoes products	951,490 (US$ 29,000,000)	b	-	-	-	- (RMB 16,488 3,840,162)	23.11	3,810 (RMB 887,461) b, 1)	225,629 (RMB 50,104,294)	-
Zhong Ao Multiples Management Group Co., Ltd.	Stadium management, wholesale and retail of clothing and footwear accessories	2,055,560 (US$ 431,795,000)	b	-	-	-	- (RMB 143,571) (32,783,100))	20.44	(29,346) (RMB 10,700,066) b, 1)	610,145 (RMB 135,708,377)	-
ShengGao Yisen Ka Yuan Industry Co., Ltd.	Production and sale of footwear products	77,432 (US$ 2,360,000)	b	-	-	-	- (RMB 35,249 8,215,605)	25.68	9,052 (RMB 2,109,767) b, 1)	57,703 (RMB 12,834,359)	-
Bao Sheng Dan Ji (Beijing) Trading Company Ltd.	Retail business of sports goods and accessories	1,988,061 (US$ 65,000,000)	b	-	-	-	- (RMB 49,720 10,818,203)	32.13	15,975 (RMB 3,473,318) b, 1)	586,770 (RMB 130,509,364)	-
Qingdao Pou-Sheng International Sport Products Co., Ltd.	Sales of sports and casual shoes and accessories	94,000 (RMB 20,000,000)	b	-	-	-	- (RMB 202,113 45,216,259)	23.13	46,749 (RMB 10,458,521) b, 1)	395,855 (RMB 88,046,135)	-
Guizhou Pou-Sheng Sport Products Co., Ltd.	Sales of sports and casual shoes and accessories	322,886 (US$ 10,000,000)	b	-	-	-	- (RMB 20,616 4,654,618)	32.13	6,624 (RMB 3,495,529) b, 1)	153,813 (RMB 34,211,083)	-
Nanning Pou-Kang Sport Products Co., Ltd.	Retail business of sports goods and accessories	42,653 (US$ 1,300,000)	b	-	-	-	- (RMB 32,594 7,444,986)	32.13	10,472 (RMB 2,392,074) b, 1)	1 (11,813) (2,627,419))	-

(Continued)

Investor Company	Main Businesses and Products	Paid-in Capital	Method of Investment (Note 1)	Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2025	Remittance of Funds		Accumulated Outward Remittance for Investment from Taiwan as of December 31, 2025	Net Income (Loss) of the Investor
					Outward	Inward
Shanghai Peu-Yuen Sport Products Business Trading Co., Ltd.	Retail business of sports goods and accessories	$ 1,567,250
(US$ 50,000,000)	b	$ -	$ -	$ -	$ -	$ 4,073,573
(RMB 952,857,266)	32.13	$ 1,308,839
(RMB 306,153,039)
b., 1)	$ 3,053,125
(RMB 479,075,762)	$ -
Yangzhou Banyi Shoes Manufacturing Co., Ltd.	Volcanized shoes, sports shoes, casual shoes and other footwear manufacturing, marketing	729,906
(US$ 22,456,800)	b	-	-	-	-	(25,245)
(RMB (5,851,444))	25.68	(6,483)
(RMB (1,502,651))
b., 1)	200,964
(RMB 44,698,365)	-
Dalian YYSPORTS Sport Industrial Development Co., Ltd.	Development and sale of sports goods, clothing, shoes and hats, fitness equipment and related products	828,000
(RMB 200,000,000)	b	-	-	-	-	(1,640)
(RMB (424,448))	32.13	(591)
(RMB (136,375))
b., 1)	500,733
(RMB 111,372,994)	-
YYSPORTS (Chengdu) Business Trading Co., Ltd.	Retail business of sports goods and accessories	689,194
(US$ 22,400,000)	b	-	-	-	-	(21,891)
(5,021,300))	32.13	(7,034)
(RMB (1,613,344))
b., 1)	182,565
(RMB 40,606,185)	-
Guangzhou Peu-Yuen Trading Co., Ltd.	Retail business of sports goods and accessories	710,251
(US$ 23,310,000)	b	-	-	-	-	(79,543)
(RMB (18,673,626))	32.13	(25,557)
(RMB (5,999,836))
b., 1)	192,234
(RMB 42,756,766)	-
Dragon Light (China) Sporting Goods Co., Ltd.	Development and sale of sports goods, clothing, shoes and hats, fitness equipment and related products	2,111,340
(US$ 66,000,000)	b	-	-	-	-	3,352
(RMB 762,772)	32.13	1,077
(RMB 245,079)
b., 1)	820,113
(RMB 182,409,458)	-
Kanshan Banyuanyi Sports Goods Co., Ltd.	Shopping mall management and property management	2,111,340
(US$ 66,000,000)	b	-	-	-	-	5
(RMB 1,213)	32.13	2
(RMB 590)
b., 1)	738,122
(RMB 164,172,996)	-
Shuansui Peusheng Trading Co., Ltd.	Engaged in wholesale, retail and import and export business of sports goods, fitness equipment and sportswear	2,012,320
(US$ 66,000,000)	b	-	-	-	-	190,981
(RMB 44,569,543)	32.13	61,362
(RMB 14,328,194)
b., 1)	1,400,856
(RMB 331,151,182)	-
Taizang Yue-Shen Sporting Goods Co., Ltd.	Engaged in the production and sales of shoe products, semi-finished products, moulds and related sports goods	393,720
(US$ 12,000,000)	b	-	-	-	-	(178,161)
(RMB (40,546,387))	32.13	(57,243)
(RMB (13,027,554))
b., 1)	290,364
(RMB 64,582,742)	-
Hangzhou Peu-Hang Sport Products Co., Ltd.	Design, development, production and processing of sports goods, sports instruments, sportswear, sports shoes and accessories	67,308
(RMB 14,200,000)	b	-	-	-	-	-	16.07	-
b., 1)	-	-
Rui Jin Peu Yuen Footwear Development Co., Ltd.	Production and sale of sports shoes, casual shoes and semi-finished products	356,697
(US$ 12,000,000)	b	-	-	-	-	(10,617)
(RMB (2,434,019))	51.36	(5,453)
(RMB (1,250,112))
b., 1)	117,065
(RMB 26,037,487)	-
Yang Xin Peu Jia Shoes Manufacturing Co., Ltd.	Production and sale of shoes apparel, footwear and garments	1,737,815
(RMB 387,363,020)	b	-	-	-	-	(127,883)
(RMB (30,232,743))	51.36	(65,681)
(15,327,538))
b., 1)	614,294
(RMB 136,631,189)	-
Jiangxi Province Yutai Shoe Co., Ltd.	Production and sale of footwear products and semi-finished products	918,125
(US$ 30,000,000)	b	-	-	-	-	(22,697)
(RMB (5,244,455))	51.36	(11,657)
(RMB (2,693,552))
b., 1)	91,883
(RMB 20,436,721)	-
Dongguan Ya Xiang Shoes Material Co., Ltd.	Production and sale of footwear products	295,820
(US$ 9,500,000)	b	-	-	-	-	23,794
(RMB 5,499,883)	51.36	12,221
(RMB 2,824,740)
b., 1)	241,062
(RMB 53,617,068)	-
Jiang Xi Hwa Ching Foam Ltd.	Manufacturing and sale of plastic foam, plastic packaging materials and other plastic products	63,600
(US$ 2,000,000)	b	-	-	-	-	3,143
(RMB 727,541)	19.52	613
(RMB (41,977)
b., 1)	16,306
(RMB 3,620,723)	-
Yue Yuen (Anh) Footwear Co., Ltd.	Production and marketing of finished shoes, semi-finished products and components and modules	1,763,350
(US$ 60,000,000)	b	-	-	-	-	165,416
(RMB 38,397,559)	51.36	84,958
(RMB 19,720,884)
b., 1)	1,447,754
(RMB 322,009,400)	-
Dong Guan Bao Yu Shoes Co., Ltd.	Production and sale of sports shoes, casual shoes, leather shoes, children's shoes, semi-finished footwear and footwear materials	66,700
(US$ 2,100,000)	b	-	-	-	-	(1,259)
(RMB (286,746))	51.36	(647)
(RMB (147,273))
b., 1)	2,589
(RMB 575,810)	-
Dongguan De Chang Zi Xun Co., Ltd.	Business management consultation, marketing planning and other services	10,290
(US$ 350,000)	b	-	-	-	-	4,347
(RMB 1,009,483)	51.36	2,232
(RMB 518,471)
b., 1)	19,078
(RMB 4,243,366)	-
Yiyang Yujing Shoes Industrial Co., Ltd.	Production and sale of finished and semi-finished sports shoes and casual shoes	743,983
(US$ 24,000,000)	b	-	-	-	-	(14,510)
(RMB (3,349,876))	51.36	(7,452)
(RMB (1,720,496))
b., 1)	54,004
(RMB 12,011,637)	-

(Continued)

Investor Company	Main Businesses and Products	Paid-in Capital	Method of Investment (Note 1)	Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2025	Remittance of Funds		Accumulated Outward Remittance for Investment from Taiwan as of December 31, 2025	Net Income (Loss) of the Investor	% Ownership of Direct or Indirect Investment	Investment Gain (Loss) (Note 2)	Carrying Amount as of December 31, 2025	Accumulated Repatriation of Investment Income as of December 31, 2025	Note
					Outward	Inward
Jiangxi Unisexen Consulting Co., Ltd.	Business management consultation, marketing planning and other services	$ 10,442
(US$ 350,000)	b	$ -	$ -	$ -	$ -	$ 2,229
(RMB 513,157)	51.36	$ 1,145
(RMB 263,557)
b., 1)	$ 10,209
(RMB 2,270,771)	$ -
Yu Xing (Jishui) Footwear Co., Ltd.	Production and sale of sports shoes	183,840
(US$ 6,400,000)	b	-	-	-	-	(11,953)
(RMB 2,758,341))	51.36	(6,139)
(RMB 1,416,684))
b., 1)	21,972
(RMB 4,007,090)	-
YangXin Peu Jia Yuan Shoes Manufacturing Co., Ltd.	Production and sale of rubber soles	87,258
(US$ 3,000,000)	b	-	-	-	-	(6,284)
(RMB 1,450,315))	25.68	(1,614)
(RMB 157,2443))
b., 1)	2,951
(RMB 656,374)	-
Peu Sheng (China) Investment Group Co., Ltd.	Business of investment, technical services and wholesale, import and export sports goods, sportswear, sports shoes and leisure shoes	4,550,741
(US$ 152,922,400)	b	-	-	-	-	499,206
(RMB 114,023,356)
b., 1)	32.13	160,395
(RMB 36,635,704)
b., 1)	4,276,303
(RMB 951,135,043)	-
Yichun Yisen Industry Co., Ltd.	Production and sale of footwear and mold products	410,130
(US$ 14,000,000)	b	-	-	-	-	89,415
(RMB 20,839,431)
b., 1)	51.36	45,924
(RMB 10,703,132)
b., 1)	428,133
(RMB 95,225,413)	-
Dong Guan Peu Chen Footwear Company Limited	Production and sale of footwear products, semi-finished footwear products and accessories, moulding tools and engaged in the wholesale and import and export business of footwear products	1,223,925
(RMB 263,827,800)	b	-	-	-	-	58,458
(RMB 14,423,831)
b., 1)	51.36	30,024
(RMB 7,408,000)
b., 1)	849,335
(RMB 188,909,125)	-
Dongguan Yusheng Shoe Industry Co., Ltd.	Production and sale of finished shoes, semi-finished shoes and mold products and engaged in research and development of shoes, finished shoes, mold products	872,268
(RMB 189,970,250)	b	-	-	-	-	241,190
(RMB 55,453,410)
b., 1)	51.36	123,875
(RMB 28,480,871)
b., 1)	822,234
(RMB 182,881,149)	-
Dong Guan Yue Yuan Footwear Products Company Limited	Production and sale of footwear products, semi-finished footwear products, mold products and engaged in wholesale and import and export business of footwear products	1,026,777
(RMB 217,720,430)	b	-	-	-	-	(35,882)
(RMB 8,280,652))
b., 1)	51.36	(18,429)
(RMB 4,252,943)
b., 1)	155,161
(RMB 34,066,143)	-
Jilin Xinfangwei Sports Goods Company Limited	Sports goods sales	-	b	-	-	-	-	-	15.90	-	-	-	Cancel
Dong Guan Yue Guan Paper Products Co., Ltd.	Production and sale of cartons and engaged in research and development of cartons	48,693
(RMB 10,000,000)	b	-	-	-	-	(935)
(217,212))
b., 1)	10.27	(96)
(RMB 22,300))
b., 1)	6,531
(RMB 1,007,812)	-
Kun Shan YYSPORTS E-Commerce Co., Ltd.	Network technology development, technical consultation, technical services and retail and wholesale of sports goods, sports equipment	89,367
(US$ 3,000,000)	b	-	-	-	-	62,629
(RMB 14,115,164)
b., 1)	32.13	20,123
(RMB 4,535,202)
b., 1)	(3,290)
(731,809))	-
Hunan Huangdi Fuan Products Co., Ltd.	Processing and production of plastic foam, foam daily products, shoe products and composite products	-	b	-	-	-	-	(702)
(158,075))
b., 1)	-	(48)
(RMB 110,091)
b., 1)	-	-	Sold
Kun Shan Taixong Trading Co., Ltd.	Wholesale and retail of clothing, footwear, glasses and watches	790,110
(US$ 26,500,000)	b	-	-	-	-	(54,762)
(RMB 12,588,066)
b., 1)	32.13	(17,595)
(RMB 4,044,546)
b., 1)	(232,551)
(RMB 51,723,930))	-
Kun Shan Peu-Hua Sport Culture Development Co., Ltd.	Management consultants, wholesale of sports goods and equipment wholesale, other sports services and other art performance assistant services	48,278
(US$ 1,500,000)	b	-	-	-	-	11
(RMB 2,422)
b., 1)	32.13	5
(RMB 778)
b., 1)	12,200
2,713,543)	-
Yisen (Yifeng) Mould Co., Ltd.	Production and sale of mould products	479,284
(US$ 14,850,000)	b	-	-	-	-	(1,250)
(RMB 275,824))
b., 1)	51.36	(642)
(RMB 141,663)
b., 1)	187,201
(RMB 41,637,211)	-
Zhu Hui Yu Yuan Industrial Co., Ltd.	Processing, production and sale of footwear products	1,408
(RMB 300,000)	b	-	-	-	-	(7,945)
(1,761,588))
b., 1)	51.36	(4,000)
(RMB 994,751)
b., 1)	(138)
(RMB 28,952))	-
Changsha YYSPORTS Sport Products Co., Ltd.	Sales of sports goods and equipment	22,825
(RMB 5,000,000)	b	-	-	-	-	62,767
(RMB 14,300,056)
b., 1)	32.13	20,400
(RMB 4,594,608)
b., 1)	17,261
3,839,175)	-
Henan YYSPORTS Sport Products Co., Ltd.	Retail business of sports goods and accessories	9,130
(RMB 2,000,000)	b	-	-	-	-	29,552
(RMB 6,294,240)
b., 1)	32.13	9,495
(RMB 2,022,339)
b., 1)	38,656
8,597,960)	-
Shenyang Peu-Yi Trading Co., Ltd.	Retail business of sports goods and accessories	182,600
(RMB 40,000,000)	b	-	-	-	-	25,551
(RMB 5,756,704)
b., 1)	32.13	8,210
(RMB 1,849,629)
b., 1)	(24,101)
(5,360,631))	-

(Continued)

Investor Company	Main Businesses and Products	Paid-in Capital	Method of Investment (Note 1)	Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2025	Remittance of Funds		Accumulated Outward Remittance for Investment from Taiwan as of December 31, 2025	Net Income (Loss) of the Investor
					Outward	Inward
Zhejiang Shengdao Sporting-Goods Co., Ltd.	Retail business of sports goods and accessories	$ 228,250
(RMB 50,000,000)	b	$ -	$ -	$ -	$ -	$ (103,885)
(RMB (24,782,616))	32.13	$ (33,378)
(RMB (7,962,654))
b., 1)	$ 200,182
(RMB 62,310,881)	$ -
Shalanjang YYSPORTS Sport Technology Co., Ltd.	Sports services, research and development of sports fitness equipment and retail business of sports goods	4,565
(RMB 1,000,000)	b	-	-	-	-	8,883
(RMB 2,043,594)	32.13	2,054
(RMB 656,607)
b., 1)	16,846
3,746,787)	-
Widerision Investment (Shenzhen) Co., Ltd.	Business management consulting, economic information consulting and market management planning	13,833
(RMB 3,000,000)	b	-	-	-	-	(1,557)
(RMB (361,573))	100.00	(1,557)
(RMB 1,773)
b., 1)	13,693
(RMB 3,045,592)	-
Chengqing Baoyu Sports Goods Company Limited	Wholesale and retail of sports goods, sports equipment, clothing, shoes, caps and accessories and premises leasing	8,994
(RMB 2,000,000)	b	-	-	-	-	(1,734)
(RMB (400,046))	32.13	(557)
(RMB (128,535))
b., 1)	(27,837)
(6,391,396))	-
Kuo Yuan Tannery	Production, processing, sales, research and development of shoe materials, import and export goods or technia	176,844
(RMB 41,047,498)	b	-	-	-	-	(29,500)
(RMB (6,771,166))	25.68	(7,576)
(RMB (1,738,835))
b., 1)	15,646
3,479,943)	-
Yangzhou Yuhong Garment Co., Ltd.	Engaged in the processing and production of apparel, apparel accessories, and selling our own products	588,725
(US$ 19,749,000)	b	-	-	-	-	(64,199)
(RMB (14,775,180))	51.36	(32,973)
(RMB (7,388,532))
b., 1)	243,332
54,121,983)	-
Yifeng Kun Ching Foam Ltd.	Production, sales, processing of plastic foam and foam daily products	8,994
(US$ 300,000)	b	-	-	-	-	1,264
(RMB 296,233)	19.52	247
(RMB 57,825)
b., 1)	5,060
1,125,379)	-
Zhongshan Hwa Ching Foam Co., Ltd.	Production of foam products	-	b	-	-	-	-	2,205
(RMB 506,658)	-	434
(RMB 99,660)
b., 1)	-	-	Solid
Hubei Peizhou Sports Goods Trading Company Limited	Management consultants, retail of sports goods, sports equipment, clothing, shoes, caps and accessories and advertising design agency	4,191
(RMB 1,000,000)	b	-	-	-	-	(13,489)
(3,118,495))	32.13	(4,334)
(RMB (1,001,973))
b., 1)	(21,951)
(4,802,413))	-
Dong Guan Orisol Trading Company Ltd.	Wholesale or repair of shoe-related machinery and parts	27,850
(US$ 1,000,000)	b	-	-	-	-	14,500
(RMB 3,356,053)	51.36	7,447
(RMB 1,723,669)
b., 1)	31,160
6,930,629)	-
Shanghai Shengjie Sports Goods Co., Ltd.	Retail business of sports goods and accessories	47,095
(RMB 15,000,000)	b	-	-	-	-	84,258
(RMB 19,580,708)	32.13	27,072
(RMB 6,291,281)
b., 1)	146,246
32,532,457)	-
Suzhou Baocheng Sports Goods Trading Co., Ltd.	Retail business of sports goods and accessories	2,204
(RMB 500,000)	b	-	-	-	-	4,760
(RMB 1,070,395)	32.13	1,529
(RMB 343,918)
b., 1)	7,406
1,647,304)	-
Fujian Pou Yuan Sporting Goods Co., Ltd.	Retail business of sports goods and accessories	856,400
(RMB 200,000,000)	b	-	-	-	-	98,154
(RMB 22,794,068)	32.13	31,537
(RMB 7,323,734)
b., 1)	300,013
(RMB 86,301,790)	-
Xinjiang Shengdao Sporting-Goods Co., Ltd.	Retail business of sports goods and accessories	21,635
(RMB 5,000,000)	b	-	-	-	-	(3,652)
(RMB 6,022)	32.13	(1,174)
(RMB (257,699))
b., 1)	3,471
771,953)	-
Hainan Shengshao E-Commerce Co., Ltd.	Retail business of sports goods and accessories	22,615
(RMB 5,000,000)	b	-	-	-	-	116,702
(RMB 26,782,617)	23.13	26,993
(RMB 6,194,019)
b., 1)	46,683
10,383,241)	-
Ka Tu Footwear Material (Shinki) Limited	Production and sale of footwear material	253,200
(US$ 8,000,000)	b	-	-	-	-	(21,261)
(RMB (4,977,703))	16.69	(3,549)
(RMB (830,779))
b., 1)	38,453
8,552,793)	-
Shanghai Shengdao Warehouse Trading Co., Ltd.	Retail business of sports goods and accessories	4,523
(RMB 1,000,000)	b	-	-	-	-	(4,388)
(RMB (1,012,081))	32.13	(1,410)
(RMB (325,181))
b., 1)	(978)
(217,449)	-
Jiangsu Baoyuan Sports Goods Co., Ltd.	Retail business of sports goods and accessories	44,700
(RMB 10,000,000)	b	-	-	-	-	18,072
(RMB 4,273,979)	32.13	5,806
(RMB 1,373,230)
b., 1)	23,807
5,295,239)	-

(Continued)

Accumulated Outward Remittance for Investment in Mainland China as of December 31, 2025	Investment Amount Authorized by Investment Commission, MOEA	Upper Limit on the Amount of Investment Stipulated by Investment Commission, MOEA (Note 4)
$ -	$ 23,160,295
(US$ 736,884,971)	$ 84,539,186

Note 1: Methods of investments have following types:
a. Direct investment in mainland China.
b. Indirect investment in the Company located in mainland China through a third place of the subsidiaries of Wealthplus Holdings Limited and Yue Yuan Industrial Holdings Limited.
c. Other.

Note 2: Investment profit or loss recognized in the current period:
a. If it is in the preparation stage, there is no investment gains and losses, it should be noted.
b. The amount of investment gain (loss) was recognized in following bases:
1) Based on the financial statements audited by an ROC CPA firm cooperating with an international CPA firm.
2) Based on the financial statements audited by the auditor of parent company.

Note 3: Financial assets at FVTOCI.

Note 4: The limitation of the amount is in accordance with the provisions of the "Regulations Governing the Examination of Investment or Technical Cooperation in Mainland China" which was passed on August 29, 2008.

(Concluded)

TABLE 8-1

POU CHEN CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTMENTS IN MAINLAND CHINA

FOR THE YEAR ENDED DECEMBER 31, 2025

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

Investor Company	Main Businesses and Products	Paid-in Capital	Method of Investment (Note 1)	Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2025	Remittance of Funds		Accumulated Outward Remittance for Investment from Taiwan as of December 31, 2025	Net Income (Loss) of the Investor	% Ownership of (Direct or Indirect) Investment	Investment Gain (Loss) (Note 2)	Carrying Amount as of December 31, 2025	Accumulated Repatriation of Investment Income as of December 31, 2025
					Outward	Inward
Kunshan Yuanying Electronics Technology Co., Ltd.	Manufacturing and sale of alloy	$ 85,936 (US$ 2,620,000)	b	$ -	$ -	$ -	$ -	$ 1,279 (RMB 299,180)	100	$ 1,279 (RMB 299,190) b, 1)	$ 116,419 (RMB 25,093,882)	$ 114,152
Accumulated Outward Remittance for Investment in Mainland China as of December 31, 2025	Investment Amount Authorized by Investment Commission, MOEA	Upper Limit on the Amount of Investment Stipulated by Investment Commission, MOEA (Note 3)
---	---	---
$ -	$ 181,351 (US$ 5,770,000)	$ 585,981

Note 1: Methods of investments have following types:
a. Direct investment in mainland China.
b. Indirect investment in the Company located in mainland China through a third region of Pearl Dove International Limited.
c. Other.

Note 2: Investment profit or loss recognized in the current period:
a. If it is in the preparation stage, there is no investment gains and losses, it should be noted.
b. The amount of investment gain (loss) was recognized on following bases:
1) Based on the financial statements audited by an ROC CPA firm cooperating with an international CPA firm.
2) Based on the financial statements audited by the auditor of parent company.

Note 3: The limitation of the amount is in accordance with the provisions of the "Regulations Governing the Examination of Investment or Technical Cooperation in Mainland China" which was amended on August 29, 2008.

AI assistant

PCC — Audit Report / Information 2025

52774_rns_2026-05-11_0927f437-a57e-4bba-953b-19d774bd1af2.pdf

Pou Chen Corporation and Subsidiaries

DECLARATION OF CONSOLIDATION OF FINANCIAL STATEMENTS OF AFFILIATES

INDEPENDENT AUDITORS' REPORT

Opinion

Basis for Opinion

Key Audit Matters

Write-downs of Inventory

Impairment of Goodwill

Other Matter

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

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

Notice to Readers

POU CHEN CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

POU CHEN CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

POU CHEN CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

POU CHEN CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

POU CHEN CORPORATION AND SUBSIDIARIES

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

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

Reclassification of financial assets

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

9. FINANCIAL ASSETS AT AMORTIZED COST

10. NOTES RECEIVABLE, ACCOUNTS RECEIVABLE AND OTHER RECEIVABLES

11. INVENTORIES

12. OTHER ASSETS

13. SUBSIDIARIES

14. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

15. PROPERTY, PLANT AND EQUIPMENT

16. LEASE ARRANGEMENTS

18. GOODWILL

19. OTHER INTANGIBLE ASSETS

20. BORROWINGS

21. NOTES PAYABLE AND ACCOUNTS PAYABLE

22. OTHER PAYABLES

23. RETIREMENT BENEFIT PLANS

24. EQUITY

Accrual rate

Amount

27. INCOME TAXES

28. EARNINGS PER SHARE

30. CAPITAL MANAGEMENT

31. FINANCIAL INSTRUMENTS

Sensitivity analysis

c) Other price risk

Sensitivity analysis

2) Credit risk

3) Liquidity risk

32. TRANSACTIONS WITH RELATED PARTIES

33. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

34. SIGNIFICANT COMMITMENTS AND UNRECOGNIZED LIABILITIES

35. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

36. SEPARATELY DISCLOSED ITEMS

37. SEGMENT INFORMATION

POU CHEN CORPORATION AND SUBSIDIARIES

POU CHEN CORPORATION AND SUBSIDIARIES

POU CHEN CORPORATION AND SUBSIDIARIES

POU CHEN CORPORATION AND SUBSIDIARIES

POU CHEN CORPORATION AND SUBSIDIARIES

POU CHEN CORPORATION AND SUBSIDIARIES

POU CHEN CORPORATION AND SUBSIDIARIES

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