Stock Code: 6914

PSS Co., Ltd.

Parent Company Only Financial Statements and Independent Auditor's Report

2025 and 2024

Address: 7F-8, No. 2, Sanmin Road, Tucheng District,

New Taipei City

Telephone: (02)2248-8958

For the convenience of readers and for information purpose only, the auditors' report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors' report and financial statements shall prevail.

§Table of Contents§

ITEM		PAGE	FINANCIAL STATEMENT NOTE NUMBER
I. Cover		1	-
II. Table of Contents		2	-
III. Independent Auditors’ Report		3~6	-
IV. Parent Company Only Statement of Financial Position		7	-
V. Parent Company Only Statement of Comprehensive Income		8~9	-
VI. Parent Company Only Statement of Changes in Equity		10	-
VII. Parent Company Only Statement of Cash Flows		11~12	-
VIII. Notes to Parent Company Only Financial Statements
(I)	Company History	13	I
(II)	The authorization of financial statements	13	II
(III)	Application of new and amended standards and interpretations	13~15	III
(IV)	Summary of significant accounting policies	15~31	IV
(V)	Significant accounting judgments and major sources of estimation uncertainty	31~32	V
(VI)	Description of significant accounting items	32~56	VI~XXIV
(VII)	Related party transactions	57~62	XXV
(VIII)	Pledged assets	62	XXVI
(IX)	Significant contingent liabilities and unrecognized contractual commitments	-	-
(X)	Losses due to material disasters	-	-
(XI)	Significant subsequent events	-	-
(XII)	Others	63~64	XXVII
(XIII)	Additional disclosures
	1. Information on significant transactions	64、66~69	XXVIII
	2. Information on investees	64、70	XXVIII
	3. Information on investment in the China	64~65	XXVIII
IX. Significant accounting items		71~81	-

Independent Auditors' Report

To: PSS Co., Ltd.

Audit Opinions

We have completed the audit of the consolidated balance sheets of PSS Co., Ltd. as of December 31, 2025 and 2024, as well as the consolidated statements of comprehensive income, changes in equity, and cash flows for the periods from January 1 to December 31, 2025 and 2024, and the notes to the consolidated financial statements (including a summary of significant accounting policies).

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

Basis for the Audit Opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountant and auditing standards in the R.O.C.. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Parent Company Only Financial Statements section of our report. The personnel of the accounting firm to which I belong who are subject to independence requirements have maintained independence from PSS Co., Ltd. in accordance with the Code of Professional Ethics for Certified Public Accountants, and have fulfilled other responsibilities under these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the parent company only financial statements of PSS Co., Ltd. for the year 2025. These matters were addressed in our audit of the Parent Company Only Financial

Statements as a whole, and in forming our audit opinion. We do not provide a separate opinion on these matters.

The key audit matters in respect of the parent company only financial statements of PSS Co., Ltd. for the year 2025 are described as follows:

Recognition of Parking Revenue from Equity Method Investments in Subsidiaries

PSS Co., Ltd.'s equity method investments in subsidiaries Yueyang Co., Ltd. and Hong Sui Industry Co., Ltd. are significant entities of PSS Co., Ltd. Their main source of revenue is parking lot revenue. Since the calculation of this revenue heavily relies on automated systems and involves large volumes of data, with transaction information processed through front-end parking management systems, manual modifications to system records could potentially affect the recognition of temporary parking revenue. The authenticity of system rate settings significantly impacts the calculation of parking lot revenue. Therefore, assessing the authenticity of temporary parking rates for specific locations represents a significant risk and has been identified as a key audit matter.

The main audit procedures that we have implemented for the above-mentioned temporary parking income include:

Understanding management's relevant internal controls for parking revenue recognition and testing their operational effectiveness;
For the parking management system that records parking information, sampling and testing whether its rate settings and changes have been properly approved;
Sampling and reviewing vehicle entry and exit records to confirm the authenticity of parking duration records in the parking management system;
Sampling calculations of parking fees in the management system and verifying them against recorded revenue.

Responsibilities of Management and Governing Units for Financial Reports

The management is responsible for the preparation and fair presentation of the Parent Company Only Financial Statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and for maintaining the necessary internal control related to the preparation of the Parent Company Only Financial Statements to ensure there is not any misrepresentation of fraud and error.

In preparing the parent company only financial statements, management is responsible for assessing PSS Co., Ltd.'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 PSS Co., Ltd. or to cease operations, or has no realistic alternative but to do so.

PSS Co., Ltd.’s unit in charge of governance (Audit Committee) is responsible for supervising the financial reporting process.

Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statements

Our objectives are to obtain reasonable assurance about whether the Parent Company Only Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report. Reasonable assurance is a high level of assurance, but is not a guarantee that the audit conducted in accordance with the Standards on Auditing will always detect material misstatements in the Parent Company Only Financial Statements. Misstatements can arise from fraud or error. If the individual amounts or the aggregate amount can be reasonably expected to influence the economic decisions of the users of the Parent Company Only Financial Statements, the misstatements are considered material.

We exercise professional judgment and professional skepticism during the audit in accordance with the International Standards on Auditing. We also perform the following tasks:

Identifying and assessing the risks of material misstatement of the parent company only financial statements, whether due to fraud or error; designing and implementing appropriate responses to those assessed risks; and obtaining sufficient and appropriate audit evidence to provide a basis for our audit opinion. Because fraud may involve collusion, forgery, intentional omission, misstatement or violation of internal control, the risk of material misstatement resulting from fraud is higher than that resulting from error.
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 PSS Co., Ltd.'s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Assess the appropriateness of management's use of the going concern basis of accounting based on the audit evidence obtained, and whether there are significant uncertainties in events or conditions that may cast significant doubt on PSS Co., Ltd.'s ability to continue as a going concern. If we are of the opinion that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the Parent Company Only Financial Statements or, modify our opinion when such disclosures are inappropriate. Our conclusion is based on the audit evidence obtained up to the date of the audit report.
5 -

However, future events or conditions may cause PSS Co., Ltd. no longer having the ability to continue as a going concern.

Evaluate the overall presentation, structure, and content of the Parent Company Only Financial Statements (including related notes), and whether the Parent Company Only Financial Statements adequately present related transactions and events.
Obtain sufficient and appropriate audit evidence regarding the financial information of the entity of PSS Co., Ltd., and express an opinion on the Parent Company Only Financial Statements. We are responsible for the guidance, supervision, and execution of the audit of the Company. We remain solely responsible for our audit opinion of PSS Co., Ltd.

The matters communicated between us and the governing unit include the planned scope and time of the audit, and major audit findings (including significant deficiencies in internal control identified during the audit).

We also provide the governance unit with a statement that we have complied with the Code of Ethics for Professional Accountants in terms of independence, and we communicate with the governance unit all relationships and other matters that may be considered to affect the independence of the accountants (including related protective measures).

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the 2025 parent company only financial statements of PSS Co., Ltd. and are therefore the key audit matters. We describe such matters in the audit report unless the law does not permit public disclosure of a particular matter or, in extremely rare circumstances, we decide not to communicate a particular matter in the audit report if it can be reasonably expected that the negative impact generated from the communication is greater than the public interest otherwise promoted.

Deloitte Taiwan

CPA Yen-Chun Chen

CPA Chien-Wei Chen

Document Number of Approval by the Financial Supervisory Commission
Letter No. Jin-Guan-Zheng-Shen-Zi 1100356048

Document Number of Approval by the Financial Supervisory Commission
Letter No. Jin-Guan-Zheng-Shen-Zi 1130349292

March 10, 2026

PSS Co., Ltd.
Parent Company Only Statement of Financial Position
December 31, 2025 and 2024
Unit: NTD thousands

Code	Assets	December 31, 2025		December 31, 2024
		Amount	%	Amount	%
Current assets
1100	Cash and cash equivalents (Notes 4, 6, and 25)	$ 414,470	10	$ 819,225	22
1140	Contract assets - Current (Notes 4 and 18)	30,098	1	14,470	-
1170	Accounts receivable (Notes 4, 8 and 18)	89,642	2	122,119	3
1180	Accounts receivable - Related parties (Notes 4, 8., 18, and 25)	117,851	3	148,585	4
1210	Other receivables - Related parties (Note 25)	35,319	1	25,797	1
1220	Current income tax assets (Notes 4 and 20)	453	-	-	-
130X	Inventories (Notes 4, 5, 9, and 25)	187,735	5	151,894	4
1479	Other current assets	59,099	1	59,730	1
11XX	Total current assets	934,667	23	1,341,820	35
Non-current assets
1510	Financial assets at fair value through profit or loss - Non-current (Notes 4 and 7)	5,307	-	4,873	-
1550	Investments accounted for using equity method (Notes 4, 10 and 25)	2,579,636	64	2,029,037	54
1600	Property, plant and equipment (Notes 4, 11 and 26)	268,900	7	160,590	4
1755	Right-of-use assets (Notes 4, 12, and 25)	91,796	2	101,855	3
1760	Investment property (Notes 4, 13, and 26)	11,943	-	12,073	-
1780	Intangible assets (Note 4)	5,460	-	7,723	-
1840	Deferred income tax assets (Notes 4 and 20)	28,408	1	26,230	1
1920	Refundable deposits (Note 25)	30,964	1	29,279	1
1930	Long-term receivables (Notes 4, 8, and 18)	60,893	2	66,687	2
1980	Other financial assets - Non-current (Notes 25 and 26)	6,462	-	11,679	-
1990	Other non-current assets - Others	1,831	-	301	-
15XX	Total non-current assets	3,091,600	77	2,450,327	65
1XXX	Total assets	$ 4,026,267	100	$ 3,792,147	100
Liabilities and equity
Current liabilities
2130	Contract liabilities - Current (Notes 4 and 18)	$ 24,083	1	$ 10,189	-
2150	Notes payable - Related parties (Note 25)	3,033	-	5,372	-
2160	Notes payable - Related parties (Note 25)	2,000	-	2,000	-
2170	Accounts payable	51,130	1	78,691	2
2180	Accounts payable - Related parties (Note 25)	495	-	796	-
2200	Other payables (Note 15)	77,394	2	66,447	2
2220	Other payables - Related parties (Note 25)	104	-	45	-
2230	Current income tax liabilities (Notes 4 and 20)	14,104	-	8,725	-
2280	Lease liabilities - Current (Notes 4, 12, and 25)	14,577	1	15,825	1
2320	Long-term borrowings due within one year (Notes 4 and 14)	3,689	-	7,614	-
2399	Other current liabilities	46,940	1	36,206	1
21XX	Total current liabilities	237,549	6	231,910	6
Non-current liabilities
2540	Long-term borrowings (Notes 4 and 14)	464	-	4,112	-
2570	Deferred income tax liabilities (Notes 4 and 20)	3,182	-	2,479	-
2580	Lease liabilities - Non-current (Notes 4, 12, and 25)	83,269	2	91,228	3
2645	Guarantee deposits received (Note 13)	6,539	-	6,523	-
25XX	Total non-current liabilities	93,454	2	104,342	3
2XXX	Total liabilities	331,003	8	336,252	9
Equity
Share capital
3110	Capital - common stock	662,260	16	662,260	18
3200	Capital reserve	1,640,141	41	1,640,141	43
Retained earnings
3310	Legal reserve	207,964	5	162,095	4
3320	Special reserves	-	-	493	-
3350	Undistributed earnings	1,183,132	30	990,143	26
3300	Total retained earnings	1,391,096	35	1,152,731	30
3400	Other equity	1,767	-	763	-
3XXX	Total equity	3,695,264	92	3,455,895	91
Total liabilities and equity		$ 4,026,267	100	$ 3,792,147	100

The accompanying notes are an integral part of the Parent Company Only Financial Statement.

Chairman: Wen-Chieh Yang
Manager: Hau-Hsin Pan
Accounting Supervisor: Kun-Hsien Lin

PSS Co., Ltd.
Parent Company Only Statement of Comprehensive Income
January 1 to December 31, 2025 and 2024
Unit: NTD thousands; EPS in NTD

Code		2025		2024
		Amount	%	Amount	%
4000	Operating revenues (Notes 4, 18, and 25)	$ 841,616	100	$ 767,245	100
5000	Operating cost (Notes 4, 9, 19 and 25)	604,663	72	574,865	75
5900	Gross operating profit	236,953	28	192,380	25
5910	Unrealized gains on sales (Note 4)	( 12,638 )	( 1 )	( 9,343 )	( 1 )
5950	Realized gross profit	224,315	27	183,037	24
	Operating expenses (Notes 19 and 25)
6100	Promotion expenses	36,762	4	39,297	5
6200	Administrative expenses	70,924	9	70,736	10
6300	R&D expenses	40,861	5	37,290	5
6000	Total operating expenses	148,547	18	147,323	20
6900	Net operating profit	75,768	9	35,714	4
	Non-operating income and expenses (Notes 4, 10, 19 and 25)
7010	Other income	11,761	2	11,344	2
7020	Other gains and losses	3,299	-	16,079	2
7050	Financial cost	( 2,697 )	-	( 2,801 )	-
7070	Share of profit or loss of subsidiaries and associates accounted for using the equity method	563,399	67	417,747	54
7000	Total non-operating income and expenses	575,762	69	442,369	58

(To be Continued)

(Continued from previous page)

Code		2025		2024
		Amount	%	Amount	%
7900	Net profit before tax	$ 651,530	78	$ 478,083	62
7950	Income tax expense (Notes 4 and 20)	( 15,809 )	( 2 )	( 19,394 )	( 2 )
8200	Net income for the year	635,721	76	458,689	60
8360	Other comprehensive income
8361	Items that may be reclassified subsequently to profit or loss:
	Exchange differences on translation of the financial statements of foreign operations (Notes 4 and 10)	1,004	-	1,256	-

8500	Total comprehensive income for the year	$ 636,725	76	$ 459,945	60
9710	Earnings per share (Note 21)
9810	Basic	$ 9.60		$ 7.14
	Diluted	$ 9.58		$ 7.12

The accompanying notes are an integral part of the Parent Company Only Financial Statement.

Chairman: Wen-Chieh Yang

Manager: Hau-Hsin Pan

Accounting Supervisor: Kun-Hsien Lin

PSS Co., Ltd.
Parent Company Only Statement of Changes in Equity
January 1 to December 31, 2025 and 2024

Unit: NTD thousands; Dividends per share in NTD

Code		Share capital (Notes 4 and 17)		Capital reserve (Notes 4 and 17)	Retained earnings (Notes 4 and 17)				Other equity item Exchange differences on translation of the financial statements of foreign operations (Notes 4 and 10)	Total equity
		Number of shares (thousand shares)	Amount		Legal reserve	Special reserves	Undistributed earnings	Total
A1	Balance as of January 1, 2024	60,232	$ 602,320	$ 679,975	$ 107,253	$ 616	$ 887,333	$ 995,202	($ 493)	$ 2,277,004
	Distribution of 2023 earnings
B1	Legal reserve	-	-	-	54,842	-	( 54,842)	-	-	-
B17	Reversal of special reserves	-	-	-	-	( 123)	123	-	-	-
B5	Cash dividends to shareholders - NT$4.547 per share	-	-	-	-	-	( 301,160)	( 301,160)	-	( 301,160)
D1	Net income for 2024	-	-	-	-	-	458,689	458,689	-	458,689
D3	Other comprehensive income after tax in 2024	-	-	-	-	-	-	-	1,256	1,256
E1	Capital increase in cash	5,994	59,940	955,532	-	-	-	-	-	1,015,472
N1	Share-based payment transactions	-	-	4,634	-	-	-	-	-	4,634
Z1	Balance as of December 31, 2024	66,226	662,260	1,640,141	162,095	493	990,143	1,152,731	763	3,455,895
	Distribution of 2024 earnings
B1	Legal reserve	-	-	-	45,869	-	( 45,869)	-	-	-
B17	Reversal of special reserves	-	-	-	-	( 493)	493	-	-	-
B5	Cash dividends to shareholders - NT$6.000 per share	-	-	-	-	-	( 397,356)	( 397,356)	-	( 397,356)
D1	Net income for 2025	-	-	-	-	-	635,721	635,721	-	635,721
D3	Other comprehensive income after tax in 2025	-	-	-	-	-	-	-	1,004	1,004
Z1	Balance as of December 31, 2025	66,226	$ 662,260	$ 1,640,141	$ 207,964	$ -	$ 1,183,132	$ 1,391,096	$ 1,767	$ 3,695,264

The accompanying notes are an integral part of the Parent Company Only Financial Statement.

Chairman: Wen-Chieh Yang

Manager: Hau-Hsin Pan

Accounting Supervisor: Kun-Hsien Lin

PSS Co., Ltd.
Parent Company Only Statement of Cash Flows
January 1 to December 31, 2025 and 2024
Unit: NTD thousands

Code		2025	2024
Cash flow from operating activities
A10000	Net income before tax for the current year	$ 651,530	$ 478,083
A20010	Income and expenses
A20100	Depreciation expense	55,937	44,793
A20200	Amortization expense	2,263	1,575
A20400	Net gain on financial assets at fair value through profit or loss	( 434)	( 11,965)
A20900	Financial cost	2,697	2,801
A21300	Dividend income	( 95)	( 417)
A21900	Share-based payment for remuneration cost	-	2,170
A21200	Interest revenue	( 10,926)	( 10,187)
A22300	Share of profit or loss of subsidiaries and associates accounted for using the equity method	( 563,399)	( 417,747)
A22500	Gain on disposal of property, plant and equipment	( 2,175)	( 1,257)
A22600	Reversal of inventory write-downs	( 1,748)	( 670)
A23900	Unrealized gain on sales	12,638	9,343
A29900	Gain on lease modification	-	( 72)
A30000	Net changes in assets/liabilities related to operating activities
A31125	Contract assets	( 15,628)	51,627
A31150	Accounts receivable	38,271	( 47,882)
A31160	Accounts receivable - Related parties	30,734	( 38,439)
A31190	Other receivables - Related parties	840	( 406)
A31200	Inventory	( 34,093)	( 36,433)
A31240	Other current assets	631	( 39,663)
A32125	Contract liabilities	13,894	2,063
A32130	Notes payable	( 2,339)	( 228)
A32140	Notes payable - related party	-	2,000
A32150	Accounts payable	( 27,561)	2,125
A32160	Accounts payable - Related parties	( 301)	( 914)
A32180	Other payables	10,519	( 1,729)
A32190	Other payables - Related parties	59	( 85)
A32230	Other current liabilities	10,734	16,364
A33000	Cash generated from operations	172,048	4,850

(To be Continued)

(Continued from previous page)

Code		2025	2024
A33100	Interest received	$ 10,682	$ 10,017
A33200	Dividends received	95	417
A33300	Interest paid	( 2,712 )	( 2,813 )
A33500	Income tax paid	( 12,358 )	( 43,659 )
AAAA	Net cash inflow (outflow) from operating activities	167,755	( 31,188 )
	Cash flow from investing activities
B00200	Disposal of financial assets at fair value through profit or loss	-	34,695
B02700	Purchase of property, plant and equipment	( 152,242 )	( 80,811 )
B02800	Proceeds from the disposal of property, plant and equipment	7,227	2,012
B03700	Increase in refundable deposits	( 1,685 )	( 11,600 )
B04300	Increase in other receivables - related parties	( 10,118 )	( 15,187 )
B04500	Purchase of intangible assets	-	( 4,900 )
B07600	Receipt of dividends from subsidiaries	1,166	675
B06500	Decrease in other financial assets	5,217	2,754
BBBB	Net cash outflow from investing activities	( 150,435 )	( 72,362 )
	Cash flow from financing activities
C01700	Repayment of long-term borrowings	( 7,573 )	( 56,351 )
C03100	Increase (decrease) in refundable deposits	16	( 503 )
C04020	Lease principal repayment	( 17,162 )	( 12,319 )
C04500	Distribution of cash dividends	( 397,356 )	( 301,160 )
C04800	Capital increase in cash	-	1,015,472
CCCC	Net cash (outflow) inflow from financing activities	( 422,075 )	645,139
EEEE	Net (decrease) increase in cash and cash equivalents	( 404,755 )	541,589
E00100	Opening balance of cash and cash equivalents	819,225	277,636
E00200	Closing balance of cash and cash equivalents	$ 414,470	$ 819,225

The accompanying notes are an integral part of the Parent Company Only Financial Statement.

Chairman: Wen-Chieh Yang

Manager: Hau-Hsin Pan

Accounting Supervisor: Kun-Hsien Lin

PSS Co., Ltd.
Notes to Parent Company Only Financial Statements
January 1 to December 31, 2025 and 2024
(expressed in New Taiwan Dollars, unless otherwise specified)

I. Company History

The Company was registered and incorporated as PSS Parking Enterprise Co., Ltd. on January 19, 2001, and the name was changed to PSS Co., Ltd. on November 3, 2017. The Company's main business items are wholesale and retail of machinery and equipment, and the construction and operation of parking lots.

The Company’s shares have been approved by Taipei Exchange for trading over the Emerging Stock Market since January 2023, and listed on the Taiwan Stock Exchange (TWSE) on May 3, 2024.

The Parent Company Only Financial Statement are presented in New Taiwan Dollar, which is the Company's functional currency.

II. The authorization of financial statements

These parent company only financial statements were approved by the Board of Directors on March 10, 2026.

III. Application of new and amended standards and interpretations

(I) Initial application of the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), International Financial Reporting Interpretations Committee Interpretations (IFRIC), and Standing Interpretations Committee Interpretations (SIC) (collectively, the “IFRS Accounting Standards”) endorsed and issued into effect by the Financial Supervisory Commission (FSC).

The application of the IFRS Accounting Standards endorsed and issued into effect by the FSC did not have material impact on the Company’s accounting policies:

(II) IFRS Accounting Standards endorsed by FSC applicable in 2026

New/amended/revised standards and interpretations	Effective date announced by IASB
Amendments to IFRS 9 and IFRS 7 "Amendments to the Classification and Measurement of Financial Instruments"	January 1, 2026
Amendments to IFRS 9 and IFRS 7 "Contracts Involving Natural-Dependent Electricity"	January 1, 2026
"IFRS Annual Improvements - Volume 11"	January 1, 2026
IFRS 17 "Insurance Contracts" (including 2020 and 2021 amendments)	January 1, 2023

As of the date of approval and issuance of these parent company only financial statements, the Company has assessed that other amendments to standards will not have a significant impact on the financial position and financial performance.

(III) IFRS Accounting Standards issued by the IASB but not yet endorsed and issued into effect by the FSC

New/amended/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
IFRS 18 “Presentation and Disclosures of Financial Statements”	January 1, 2027 (Note 2)
IFRS 19 "Subsidiaries without Public Accountability: Disclosures" (including 2025 amendments)	January 1, 2027
Amendments to IAS 21 “Translation to a Hyperinflationary Presentation Currency”	January 1, 2027

Note 1: Unless stated otherwise, the above new IFRSs are effective for annual periods beginning on or after their respective effective dates.

Note 2: On September 25, 2025, the FSC announced that Taiwanese enterprises will be required to apply IFRS 18 from January 1, 2028, or may elect to apply it earlier once IFRS 18 is approved by the FSC.

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

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

The Company shall assess whether it has specific main business activities such as investing in specific types of assets and providing financing to customers, based on which the income and expense items in the income statement are classified into operating, investing, financing, income tax and discontinued operations categories.
The income statement should present operating profit or loss, profit or loss before financing and taxes, and subtotals and totals of profit or loss.
Provides guidance to strengthen aggregation and disaggregation requirements: The consolidated company must identify assets, liabilities, equity, income, expenses, and cash flows generated from individual transactions or other events, and classify and aggregate them based on common characteristics, so that each line item

presented in the primary financial statements has at least one similar characteristic. Items with dissimilar characteristics should be disaggregated in the primary financial statements and notes. The Company should only label such items as 'Other' when it cannot find a more informative label.

Enhanced disclosure of management-defined performance measures: When the Company communicates outside the financial statements publicly, and communicates management's perspectives on a particular aspect of the Company's overall financial performance to financial statement users, it should disclose information related to management-defined performance measures in a single note to the financial statements, including a description of the measure, how it is calculated, its reconciliation with subtotals or totals specified by IFRS accounting standards, and the income tax and non-controlling interest effects of related reconciliation items.

In addition, the following amendments have been made to IAS 7 "Statements of Cash Flows":

When the Company prepares the statement of cash flows from operating activities using the indirect method, operating profit or loss shall be the starting point for reconciliation.
The interest and dividends received by the Company were classified as investment activities, and the interest and dividends paid were classified as financing activities. If the Company is assessed to have specific major operating activities, it must consider the types of dividend income, interest income, and interest expense listed in the income statement to determine the classification of dividend receipts, interest receipts, and interest payments in the statement of cash flows. However, the above cash flows can only be classified within a single activity in the statement of cash flows.

In addition to the above effects, the Company continues to evaluate other impacts of each standard and amendment to interpretations on its financial position and financial performance as of the release date of the parent company only financial statements. The relevant impact will be disclosed when the evaluation is completed.

IV. Summary of significant accounting policies

(I) Statement of Compliance

The parent company only financial statements are prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

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(II) Basis of Preparation

Except for the financial instruments measured at fair value, the Parent Company Only Financial Statements have been prepared on the historical cost basis.

The fair value measurement is divided into Level 1 to Level 3 according to the observable degree and importance of the relevant input value:

Level 1 inputs: Quoted prices (unadjusted) in active markets for identical assets or liabilities available on the measurement date.
Level 2 inputs: Inputs, other than quoted prices in Level 1, that are observable, either directly (i.e., prices) or indirectly (i.e., derived from prices) for the asset or liability.
Level 3 inputs: Unobservable inputs for the asset or liability.

In preparing the Parent Company Only Financial Statements, the Company adopts the equity method to account for its investment in subsidiaries or associates. In order to make the profit and loss, other comprehensive income and equity of the current year in the Parent Company Only Financial Statement and the profit and loss, other comprehensive income and equity of the current year attributable to the owners of the Company in the consolidated financial statements of the Company, under the parent company only basis and the consolidated basis, certain accounting treatment differences as "Investments accounted for using the equity method," "Share of profit or loss of subsidiaries and affiliates recognized using the equity method," "Share of other comprehensive income of subsidiaries recognized using the equity method," and related equity items have been adjusted.

(III) Criteria for distinguishing current and non-current assets and liabilities

Current assets include:

Assets held primarily for the purpose of trading;
Assets expected to be realized within 12 months after the Statement of Financial Position date; and
Cash and cash equivalents (excluding those restricted from being exchanged or used to settle a liability for at least 12 months after the Statement of Financial Position date).

Current liabilities include:

Liabilities held primarily for the purpose of trading;
Liabilities due to be settled within 12 months after the Statement of Financial Position date; and
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As of the statement of financial position date, the Company has no substantive right to defer settlement of liabilities for at least 12 months after the statement of financial position date.

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

(IV) Foreign Currency

When the Company prepares financial statements, transactions in currencies other than the Company’s functional currency (i.e. foreign currencies) are recognized at the rates of exchange prevailing on the transaction dates.

Monetary items denominated in foreign currencies are translated at the rates prevailing at the Statement of Financial Position date. The exchange differences arising from the settlement of monetary items or translating monetary items are recognized in profit or loss in the period in which they are incurred.

The foreign currency non-monetary item measured at fair value is translated at the exchange rate on the date when the fair value is determined, and the exchange difference generated is recognized in the current profit or loss. However, for the change in fair value recognized in other comprehensive income, the exchange difference generated is recognized in other comprehensive income.

Non-monetary items in foreign currency measured at historical cost are translated at the exchange rate on the transaction date and will not be retranslated.

For the purpose of preparing the Parent Company Only Statement, the assets and liabilities of the Company's foreign operations (including affiliates that operate in countries or adopt currencies different from the Company’s) are translated into NTD using the exchange rates prevailing at each Statement of Financial Position date. Income and expense items are translated at the average exchange rates for the period, and the resulting exchange differences are recognized in other comprehensive income.

(V) Inventory

Inventories are measured at the lower of cost or net realizable value. When comparing cost and net realizable value, unless similar or related items are categorized, they are compared item by item. The net realizable value refers to the balance of the estimated selling price in the ordinary course of business less the estimated costs to be invested in completion and the completion of the sale. The cost of inventories is calculated using the weighted average method.

(VI) Investment in Subsidiaries

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The Company accounts for its investment in subsidiaries under the equity method.

A subsidiary is an entity controlled by the Company.

Under the equity method, an investment is initially recognized at cost, and the carrying amount after the acquisition is increased or decreased by the Company’s share of the profit or loss and other comprehensive income of the subsidiary and the profit distribution. In addition, the changes in the Company’s other equity in subsidiaries are recognized based on the shareholding percentage.

Changes in the Company’s ownership interests in subsidiaries that do not result in a loss of control are accounted for as equity transactions. The difference between the carrying amount of the investment and the fair value of the consideration paid or received is directly recognized in equity.

When the Company’s share of losses on a subsidiary equals or exceeds its equity in the subsidiary (including the carrying amount of the subsidiary under the equity method and other long-term interests that in substance form part of the Company’s net investment in the subsidiary), continue to recognize the losses in proportion to the shareholding.

When the Company assesses the impairment, it considers the cash-generating unit as a whole in the financial report and compares its recoverable amount with the carrying amount. If the recoverable amount of the asset increases subsequently, the reversal of the impairment loss shall be recognized as gains. However, the carrying amount of the asset after the reversal of the impairment loss shall not exceed the amount that would have been appropriated if the impairment loss had not been recognized in the carrying amount after amortization. The impairment loss attributable to goodwill shall not be reversed in subsequent periods.

When the Company loses control over a subsidiary, the remaining investment in the former subsidiary is measured at the fair value on the date when the control is lost. The fair value of the remaining investment and the difference between any disposal price and the carrying amount of the investment on the date when the control is lost will be recognized in current profit and loss. In addition, the accounting treatment of all amounts recognized in other comprehensive income related to the subsidiary is the same as that required for the Company's direct disposal of relevant assets or liabilities.

The unrealized gains and losses of downstream transactions between the Company and its subsidiaries are written off in the Parent Company Only Financial Statements. The gains and losses arising from the upstream and lateral transactions

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between the Company and the subsidiaries are recognized in the parent company only financial statements only to the extent that they are not related to the Company's interests in the subsidiaries.

(VII) Investment in Associates

Affiliated enterprises are enterprises over which the Company has significant influence but is not a subsidiary or a joint venture.

The Company adopts the equity method for investment in associates.

Under the equity method, an associate investment is initially recognized at cost, and the carrying amount after the acquisition is increased or decreased by the Company's share of the associate's profit or loss and other comprehensive income of the subsidiary and the profit distribution. In addition, the changes in the equity of associates are recognized based on the shareholding ratio.

When the affiliated enterprise issues new shares, and if the Company fails to subscribe to them in proportion to their shareholding, resulting in a change in the shareholding ratio and thus causing an increase or decrease in the net equity investment, the capital reserve - changes of net value of affiliated enterprise recognized under equity method and investments accounted for using the equity method. However, if the shareholding in the affiliated enterprise is reduced due to the failure to subscribe or obtain it in proportion to the shareholding, the amount related to the affiliated enterprise recognized in other comprehensive income shall be reclassified in accordance with the proportion of the decrease, and the accounting treatment shall be based on the accounting treatment of the affiliated enterprise if the related assets or liabilities are directly disposed of on the same basis; if the aforementioned adjustments should be debited to capital reserve, and the capital reserve balance generated by an investment under the equity method is insufficient, the difference is debited to retained earnings.

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

When assessing impairment, the Company treats the entire carrying amount of the investment (including goodwill) as a single asset, comparing the recoverable

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amount with the carrying amount to perform an impairment test. The recognized impairment loss is not allocated to any assets that constitute components of the investment's carrying amount, including goodwill. Any reversal of an impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

The Company ceases to adopt the equity method from the date its investment ceases to be an affiliate, and its retained interest in the former affiliate is measured at fair value. The difference between the fair value and the disposal price and the carrying amount of the investment on the date of cessation of the equity method is stated included in current profit and loss. In addition, all amounts recognized in other comprehensive income related to the affiliated enterprise shall be accounted for on the same basis as the one that the affiliated enterprise must observe if it directly disposes of the relevant assets or liabilities. If the investment in affiliates become an investment in the joint venture, or the investment in the joint venture becomes an investment in affiliates, the Company continues to adopt the equity method and does not remeasure the reserved equity.

The profit or loss arising from the upstream, downstream and lateral transactions between the Company and the affiliated company is recognized in the parent company only financial statements only within the range that is irrelevant to the Company's interest in the affiliated company.

(VIII) Property, Plant and Equipment

Property, plant and equipment are recognized at cost and subsequently measured at cost less accumulated depreciation.

The property, plant and equipment under construction is recognized at the amount of cost. Cost includes professional service fees and borrowing costs that meet the capitalization conditions. Before the assets reach the expected state of use, the samples produced for testing whether the assets can operate normally are measured at the lower of the cost or the net realizable value. The selling price and cost are recognized in profit or loss. Such assets are classified into the appropriate category of property, plant and equipment and begin to be depreciated upon completion and reaching the state of intended use.

Except for owned land for which no depreciation is provided, the remaining property, plant and equipment are depreciated separately for each significant component on a straight-line basis over their useful lives. The Company reviews the

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estimated useful life, residual value, and depreciation methods at least at the end of each year, while applying the effects of changes in accounting estimates prospectively.

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

(IX) Investment Property

Investment property is held for the purpose of earning rent or capital appreciation or both. Investment property also includes land held for which the future use has not yet been determined.

Self-owned investment property is initially measured at cost (including transaction cost) and subsequently measured at cost less accumulated depreciation and accumulated impairment losses.

Investment property is depreciated on a straight-line basis.

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

(X) Intangible Assets

Separately Acquired

The intangible assets with limited useful life acquired separately are initially measured at cost, and subsequently measured at cost less accumulated amortization. Intangible assets are amortized on a straight-line basis over the useful lives. The Company reviews the estimated useful life, residual value, and amortization methods at least at the end of each year, while applying the effects of changes in accounting estimates prospectively.

Derecognition

When an intangible asset is derecognized, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss for the period.

(XI) Impairment of Property, Plant and Equipment, Right-of-Use Assets, Investment Property and Intangible Assets

The Company assesses at each statement of financial position date whether there is any indication that the property, plant and equipment, right-of-use assets, investment property and intangible assets may have been impaired. If there is any sign of impairment, estimate the recoverable amount of the asset. If the recoverable amount

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of an individual asset cannot be estimated, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

The recoverable amount is the fair value less cost of sale or its value in use, whichever is higher. If the recoverable amount of an individual asset or cash-generating unit is lower than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount, and the impairment loss is recognized in profit or loss.

When the impairment loss is subsequently reversed, the carrying amount of the asset or cash-generating unit is increased to the revised recoverable amount. However, the increased carrying amount shall not exceed the carrying amount (less amortization or depreciation) determined when the asset or cash-generating unit was not recognized as impairment loss in the previous fiscal year. Reversal of impairment loss is recognized in profit or loss.

(XII) Financial Instruments

Financial assets and financial liabilities shall be recognized in the parent company only statement of financial position when the Company becomes a party to the contractual provisions of the instrument.

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

Financial Assets

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

(1) Measurement Categories

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

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

Financial assets at FVTPL include financial assets mandatorily measured at FVTPL. Financial assets mandatorily measured at fair

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value through profit or loss include investments in equity instruments not designated to be measured at fair value through other comprehensive income, and investments in debt instruments not eligible for classification as measured at amortized cost or at fair value through other comprehensive income.

Financial assets at FVTPL are measured at fair value, and the dividends generated are recognized in other income. Methods for determining fair value are described in Note 24.

B. Financial Assets Measured at Amortized Cost

If the Company's investment financial assets meet the following two conditions at the same time, they are classified as financial assets measured at amortized cost:

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

Financial assets measured at amortized cost (including cash and cash equivalents, notes and accounts receivable measured at amortized cost (including related parties), other receivable - related parties and refundable deposits) after initial recognition, it is measured at the amortized cost of the total carrying amount determined by the effective interest method less any impairment loss. Any foreign currency exchange gains or losses are recognized in profit or loss.

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

a. For purchased or originated credit-impaired financial assets, interest revenue is calculated by multiplying the credit-adjusted effective interest rate by the amortized cost of the financial asset.
b. For financial assets that are not acquired or originated credit-impaired but subsequently become credit-impaired, interest revenue shall be calculated by multiplying the effective interest rate by the

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amortized cost of the financial asset from the next reporting period after the credit impairment.

Financial assets are credit-impaired when the issuer or debtor has experienced major financial difficulties, default, the debtor is likely to file for bankruptcy or other financial reorganization, or financial difficulties that cause the active market of the financial asset to disappear.

Cash equivalents include time deposits that are highly liquid, convertible into known amounts of cash at any time with little risk of value changes within 3 months from the date of acquisition, and is used to meet short-term cash commitments.

Demand deposits with restrictions on use due to contracts with third parties are also classified as cash, unless such restrictions change the nature of the deposit so that it no longer meets the definition of cash.

(2) Impairment of financial assets and contract assets

The Company assesses the impairment loss of financial assets measured at amortized cost (including accounts receivable) and contract assets based on the expected credit loss at each statement of financial position date.

Accounts receivable and contract assets are recognized in loss allowance based on lifetime expected credit losses. Other financial assets are first assessed by assessing whether the credit risk has increased significantly since the initial recognition. If there is no significant increase in the credit risk, the allowance for loss is recognized at an amount equal to 12-month expected credit losses. If there has been a significant increase, an amount equal to lifetime expected credit losses is recognized in loss allowance.

The expected credit loss is the weighted average credit loss with the risk of default as the weight. The 12-month expected credit loss represents the expected credit loss generated by the possible default of the financial instrument within 12 months after the reporting date, and the lifetime expected credit loss represents the expected credit loss generated by all possible defaults of the financial instrument during the expected lifetime.

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For the purpose of internal credit risk management, the Company, without considering the collateral held, determines that the following situations represent a default on a financial asset:

A. There is internal or external information indicating that it is impossible for the debtor to pay off the debt.

B. Overdue for more than 360 days, unless there is reasonable and corroborative information to show that a delayed default basis is more appropriate.

The impairment loss of all financial assets is reduced to the carrying amount through the allowance account.

(3) Derecognition of Financial Assets

The Company derecognizes a financial asset only when the contractual rights to the cash flows from the financial asset expire or have been completed, or when substantially all of the risks and rewards of ownership of the financial asset have been transferred.

When derecognition of a financial asset at amortized cost in its entirety, the difference between the carrying amount and the consideration received is recognized in profit or loss.

Equity Instruments

The Company’s debt and equity instruments are classified as financial liabilities or equity based on the substance of the contractual agreements and the definitions of financial liabilities and equity instruments.

The equity instruments issued by the Company are recognized at the acquisition price net of directly attributable transaction costs.

The repurchase of the Company’s own equity instruments is recognized in and deducted under equity, and the carrying amount is calculated based on the weighted average of the types of shares. The purchase, sale, issuance or cancellation of the Company’s own equity instruments is not recognized in profit or loss.

Financial Liabilities

(1) Subsequent Measurement

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

(2) Derecognition of Financial Liabilities

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

(XIII) Revenue Recognition

After identifying the performance obligation in the contract with the customer, the Company allocates the transaction price to each performance obligation, and recognizes revenue when each performance obligation is satisfied.

Equipment sales revenue

When equipment-related products arrive at the customer’s designated location, the customer has the right to set the price and the use of the product, and has the main responsibility for resale and the risk of obsolescence. The Company recognizes the revenue and accounts receivable at this point of time.

Revenue from construction of parking lots

The obligations committed to the customer in the construction contract include the management and coordination of the transfer of customized equipment, wiring, installation, system integration testing, site preparation and signboard hanging, including major integration services of different items, to ensure that individual products or services are consolidated as a combination of customer needs. Since the contract provides significant integration services, it should be regarded as a single performance obligation.

If the contract specifies a construction contract in which the asset is under the control of the customer during the construction process, the Company recognizes it as revenue over time. Since the cost of construction is directly related to the degree of completion of the performance obligation, the Company measures the progress of completion based on the ratio of the actual investment cost to the expected total cost. The Company recognizes contract assets progressively during the construction process, and reclassifies them to accounts receivable when the unconditional right to collect is obtained. If the construction payment received exceeds the amount recognized as revenue, the difference is recognized as a contract liability.

If the contract does not meet the conditions for progressive recognition of revenue over time, the Company recognizes the revenue and accounts receivable when the contract is completed and accepted.

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The retention of construction projects withheld by the customer according to the contract terms is to ensure that the Company completes all contractual obligations and is recognized as a contract asset before the Company's performance is completed.

Equipment maintenance income

For the Company's provision of parking lot maintenance and other related labor services, because the customer obtains and consumes the performance benefits at the same time, the related income is recognized in the period when the labor is provided.

Other income

Other income mainly includes lease and labor service contract with customers. Since the customer obtains and consumes the benefits of performance at the same time, it is recognized as income and accounts receivable over time during the contract period.

(XIV) Leases

The Company assesses whether the contract is (or contains) a lease on the date of establishment of the contract.

For contracts containing lease and non-lease components, the Company allocates the consideration in the contracts based on the relative stand-alone prices and treats them separately.

The Company as lessor

When the lease clause transfers almost all the risks and rewards attached to the ownership of assets to the lessee, it is classified as a financing lease. All other leases are classified as operating leases.

Under finance leases, lease payments include fixed payments. The net lease investment amount is measured by the sum of the present value of the lease payment receivable and the unguaranteed residual value plus the original direct cost, and is expressed as the leasehold receivable. Financing income is allocated to each accounting period to reflect the fixed rate of return on the Company's unexpired net lease investment in each period.

Under operating leases, the lease payments net of lease incentives are recognized as income on a straight-line basis over the relevant lease terms. The initial direct costs incurred in acquiring operating leases are added to the carrying

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amount of the underlying assets and recognized as expenses on a straight-line basis over the lease terms.

The Company as the lessee

Except for low-value asset leases and short-term leases to which a recognition exemption applies, for which lease payments are recognized as expenses on a straight-line basis over the lease terms, other leases are recognized as right-of-use assets and lease liabilities on the lease commencement date.

The right-of-use asset is initially measured at cost (including the initial measured amount of the lease liability, lease payments paid at the beginning of the lease less lease incentives received, initial direct costs, and the estimated cost of restoring the underlying asset), and subsequently measured at cost less accumulated depreciation. After measurement of the amount after the accumulated impairment loss, remeasurement of the lease liability is performed. Right-of-use assets are presented on a separate line in the parent company only statement of financial position.

Right-of-use assets are depreciated on a straight-line basis from the lease commencement date to the end of the service life or the expiration of the lease term, whichever is earlier.

Lease liabilities are initially measured at the present value of the lease payments (including fixed payments, substantive fixed payments, variable lease payments depending on the index or rate, and the amount expected to be paid by the lessee under the residual value guarantee). If the interest rate implied by the lease is easy to determine, the lease payment is discounted at the interest rate. If the interest rate cannot be easily determined, the lessee's incremental borrowing rate is used.

Subsequently, the lease liability is measured at the amortized cost using the effective interest method, and the interest expense is amortized over the lease term. If there are changes in future lease payments during the lease term due to changes of the expected payment amount under the residual value guarantee, or the index or rate used to determine lease payments, the company remeasures the lease liabilities and adjusts the right-of-use assets accordingly. If the carrying amount of the right-of-use assets is reduced to zero, the remaining remeasurement amount is recognized in profit or loss. For lease modifications that are not treated as a separate lease, the remeasurement of the lease liabilities

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due to the reduced scope of the lease is to reduce the right-of-use assets, and recognize the gain or loss of the partial or full termination of the lease; the remeasurement of the lease liabilities due to other modifications is to adjust the right-of-use assets. Lease liabilities are presented on a separate line in the parent company only statement of financial position.

(XV) Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction, or production of qualifying assets are treated as part of the cost of the asset until the asset is nearly ready for its intended use or sale.

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

Except for the above, all other borrowing costs are recognized in profit or loss in the period in which they are incurred.

(XVI) Employee Benefits

Short-term employee benefits

The liabilities related to short-term employee benefits are measured by the non-discounted amount expected to be paid in exchange for employee services.

Post-employment benefits

For the pension under the defined contribution plan, the amount of the pension to be contributed is recognized as an expense during the service period of the employees.

(XVII) Share-based Payment Arrangements

Employee stock options granted to employees

Employee stock options are expenses recognized on a straight-line basis within the vesting period based on the fair value of the equity instruments on the grant date and the best estimate of the number expected to be vested, and the capital reserve - employee stock options is adjusted at the same time. If it is immediately vested on the grant date, the full amount is recognized as expenses on the grant date.

The Company revises the estimated number of expected vested employee share options at each statement of financial position date. If the original estimate is revised, the effect is recognized in profit or loss so that the accrued expenses

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reflect the revised estimate, with a corresponding adjustment to capital reserves - employee stock options.

Share-based payment agreement for equity granted to employees of subsidiaries

The employee stock options granted by the Company to employees of subsidiaries and settlement of the Company's equity instruments are deemed as capital investment for the subsidiaries and are measured at the fair value of the equity instruments on the grant date and are recognized as investments in subsidiaries during the vesting period when the carrying amount of the investment increases, the capital reserve - employee share options is adjusted accordingly.

(XVIII) Income Tax

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

Current Tax

The Company determines the income (loss) of the current period in accordance with the laws and regulations of the Republic of China, and calculates the payable (recoverable) income tax accordingly.

According to the Income Tax Act of the R.O.C., an additional tax on undistributed earnings is recognized in the year by shareholders' meeting resolution.

Adjustments to income tax payable from prior years are recognized in current income tax.

Deferred Tax

Deferred tax is accounted for temporary differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax basis used in the computation of taxable profit or loss.

Deferred income tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized when it is probable that taxable income will be available to deduct the temporary differences.

The taxable temporary differences related to the investment in subsidiaries and affiliated companies are recognized as deferred income tax liabilities. However, this is with exception to when the Company can control the time point of the temporary difference reversal, and it is probable that the temporary

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difference will not reverse in the foreseeable future. The deductible temporary difference related to such investment is recognized as deferred income tax assets only when it is probable that there will be sufficient taxable income to realize the temporary difference, which is expected to be reversed in the foreseeable future.

The carrying amount of deferred income tax assets is reviewed at each statement of financial position date, and the carrying amount is reduced if it is no longer probable to have sufficient taxable income to recover for all or part of the assets. Unrecognized deferred income tax assets are also reviewed at each statement of financial position date, and the carrying amount is increased when the taxable income will probably be generated in the future for the recovery of all or part of the assets.

Deferred income tax assets and liabilities are measured at the expected tax rates in the period in which the assets are realized or liabilities are settled, based on tax rates and tax laws that have been enacted or substantively enacted by the statement of financial position date. The measurement of deferred tax liabilities and assets reflects the tax consequences that would arise from the manner in which the Company expects to recover or settle the carrying amount of its assets and liabilities at the statement of financial position date.

3. Current and Deferred Tax

Current and deferred income tax is recognized in profit or loss, except when the current and deferred income tax relating to the item is recognized in other comprehensive income or directly in equity, respectively.

V. Significant accounting judgments and major sources of estimation uncertainty

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

When the Company develops significant accounting estimates, it includes the consideration of cash flow estimates, growth rates, discount rates, profitability, and other relevant major estimates. The management will continue to review the estimates and basic assumptions.

Inventory impairment

The net realizable value of inventories is estimated by taking the balance of the estimated selling price in the normal business process less the estimated cost of

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completion and the estimated cost of sales. Such estimation is evaluated based on the current market status and the historical sales experiences of similar products. Changes in market conditions may materially affect the estimated results.

VI. Cash and cash equivalents

	December 31, 2025	December 31, 2024
Cash on hand and working capital	$ 75	$ 138
Checks and demand deposits	214,395	519,087
Cash equivalents (investments with an original maturity date within three months)
Bank time deposits	200,000	300,000
	$ 414,470	$ 819,225

The interest rate ranges of bank time deposits on the balance sheet date are as follows:

Bank time deposits	December 31, 2025	December 31, 2024
	1.28~1.75%	1.23%

VII. Financial instruments at fair value through profit or loss

	December 31, 2025	December 31, 2024
Financial assets - non-current
Mandatorily at fair value through profit or loss
Non-derivative financial assets
- TPEx listed stocks	$ 5,307	$ 4,873

VIII. Accounts receivable

	December 31, 2025	December 31, 2024
Notes receivable - Current	$ 3,242	$ 1,462
Accounts receivable - Current (including related parties)	$ 173,358	$ 234,555
Allowance for losses	( 52)	( 49)
	$ 173,306	$ 234,506
Lease payment receivable	$ 100,725	$ 111,474
Less: Loss allowance	( 33)	( 36)
Unearned financing income	( 8,854)	( 10,015)
	$ 91,838	$ 101,423

The Company's lease payments receivable are as follows:

	December 31, 2025	December 31, 2024
Undiscounted lease payments
Year 1	$ 33,725	$ 37,761
Year 2	20,138	21,126
Year 3	16,413	16,530
Year 4	12,445	12,417
More than 5 years	18,004	23,640
	100,725	111,474
Less: Loss allowance	( 33)	( 36)
Unearned financing income	( 8,854)	( 10,015)
	$ 91,838	$ 101,423

The lease receivables are classified according to their liquidity as follows:

	December 31, 2025	December 31, 2024
Carrying amount of lease receivables
Current	$ 30,945	$ 34,736
Non-current (accounted as long-term receivables)	60,893	66,687
	$ 91,838	$ 101,423

If the lease receivables are expected to be recovered over a period of more than a year, they are expected to be recovered gradually before 2034.

The Company is an equipment manufacturer and has entered into financial lease contracts for equipment with certain customers. The sales revenue of financial leases generated is as follows:

	2025	2024
Financing and leasing sales revenue	$ 15,262	$ 26,457

The Company's average credit period for merchandise sales and financial leasing is shorter than 90 days, and no interest is accrued on accounts receivable. To mitigate credit risk, the Company has established credit management measures to regulate the determination of credit limit, credit approval and other monitoring procedures to ensure that appropriate actions are taken in the recovery of overdue accounts receivable. In addition, the Company reviews the recoverable amounts of notes receivable, accounts receivable, and lease receivables one by one at the balance sheet date to ensure that uncollectible notes, accounts, and lease receivables have been set aside as appropriate impairment of losses. Accordingly, the Company's management believes that the Company's credit risk has been significantly reduced.

The Company recognizes an allowance for losses on notes receivable, accounts receivable, and lease receivables based on lifetime expected credit losses. The lifetime expected credit losses are calculated using a provision matrix, which takes into account the customer's past default history and current financial position and industry economic situation. As the Company's credit loss history shows that there is no significant difference in the loss patterns of different customer groups, the allowance matrix does not further divide the customer groups, but only uses notes receivable, accounts receivable and lease payment days to establish the expected credit loss rate.

If there is evidence that the counterparty is facing serious financial difficulties and the Company cannot reasonably expect the recoverable amount, the Company will directly write off the relevant notes receivable, accounts receivable and lease receivables. The Company will continue to take the recovery actions and the recovered amount is recognized in profit or loss.

The Company measures the allowance for losses of notes receivable, accounts receivable and lease receivables based on the provision matrix as follows:

December 31, 2025

	0 - 60 days	61 - 90 days	91 - 180 days	Over 181 days	Total
Expected credit loss rate	-	0.01%	0.01%~0.02%	0.02%~0.05%
Gross carrying amount	$ 124,014	$ 71,348	$ 11,291	$ 61,818	$ 268,471
Loss allowance (lifetime expected credit losses)	-	(3)	(1)	(81)	(85)
Amortized cost	$ 124,014	$ 71,345	$ 11,290	$ 61,737	$ 268,386

December 31, 2024

	0 - 60 days	61 - 90 days	91 - 180 days	Over 181 days	Total
Expected credit loss rate	-	0.01%	0.02%	0.04%~0.05%
Gross carrying amount	$ 153,334	$ 108,365	$ 4,255	$ 71,522	$ 337,476
Loss allowance (lifetime expected credit losses)	-	(3)	(1)	(81)	(85)
Amortized cost	$ 153,334	$ 108,362	$ 4,254	$ 71,441	$ 337,391

Information on changes in the allowance for losses on accounts receivable and lease payment receivable is as follows:

	2025	2024
Beginning and ending balances	$ 85	$ 85

IX. Inventory

	December 31, 2025	December 31, 2024
Finished goods	$ 12,685	$ 11,651
Work in progress	131,949	93,432
Raw materials	43,101	46,811
	$ 187,735	$ 151,894

Cost of goods sold related to inventories amounted to NT$351,758 thousand and NT$330,868 thousand for 2025 and 2024, respectively. The cost of goods sold includes price decline in inventories (reversal gains) of NT$1,748 thousand, and NT$670 thousand, respectively. The reversals in net realizable value of inventory were due to inventory liquidation.

X. Investment under equity method

	December 31, 2025	December 31, 2024
Investment in Subsidiaries	$ 2,555,364	$ 2,009,404
Investment in Associates	24,272	19,633
	$ 2,579,636	$ 2,029,037

(I) Investment in Subsidiaries

	December 31, 2025	December 31, 2024
Yua-Yung Co., Ltd.	$ 1,037,970	$ 864,071
Horng Suey Marketing Co., Ltd.	1,479,418	1,108,815
CANYI CO., LTD.	37,976	36,518
	$ 2,555,364	$ 2,009,404
Name of subsidiary	Percentage of ownership interests and voting rights
---	---	---
	December 31, 2025	December 31, 2024
Yua-Yung Co., Ltd.	100%	100%
Horng Suey Marketing Co., Ltd.	100%	100%
CANYI CO., LTD.	30%	30%

The Company and its subsidiaries jointly hold 100% equity in Canyi Co., Ltd. because the Company lists Canyi Co., Ltd. as a subsidiary.

The share of profit and loss and other comprehensive income of the subsidiaries accounted for using the equity method in 2025 and 2024 were recognized based on the audited financial statements.

(II) Investment in Associates

	December 31, 2025	December 31, 2024
Associated companies that are not individually material	$ 24,272	$ 19,633

The Company's share of profit or loss and other comprehensive income of the investment under the equity method is calculated based on the affiliated enterprise's audited financial statements.

Aggregate information of individually immaterial affiliated companies

	2025	2024
The Company's share
Net income for the year	$ 3,635	$ 3,118
Other comprehensive income	1,004	1,256
Total comprehensive income	$ 4,639	$ 4,374

XI. Property, plant and equipment

	Self-owned land	Buildings	Machinery and equipment	Leasehold improvements	Other equipment	Construction in progress	Total
Cost
Balance as of January 1, 2024	$ -	$ 779	$ 124,550	$ 1,806	$ 6,804	$ 12,370	$ 146,309
Addition	-	-	53,639	6,625	4,654	14,852	79,770
Disposal	-	-	( 3,098 )	( 1,806 )	( 1,799 )	-	( 6,703 )
Reclassification	-	-	12,261	-	-	( 12,261 )	-
Balance as of December 31, 2024	$ -	$ 779	$ 187,352	$ 6,625	$ 9,659	$ 14,961	$ 219,376
Accumulated depreciation
Balance as of January 1, 2024	$ -	$ 329	$ 32,567	$ 1,471	$ 3,223	$ -	$ 37,590
Depreciation expense	-	23	24,434	446	2,241	-	27,144
Disposal	-	-	( 2,343 )	( 1,807 )	( 1,798 )	-	( 5,948 )
Reclassification	-	-	-	-	-	-	-
Balance as of December 31, 2024	$ -	$ 352	$ 54,658	$ 110	$ 3,666	$ -	$ 58,786
Net as of December 31, 2024	$ -	$ 427	$ 132,694	$ 6,515	$ 5,993	$ 14,961	$ 160,590
Cost
Balance as of January 1, 2025	$ -	$ 779	$ 187,352	$ 6,625	$ 9,659	$ 14,961	$ 219,376
Addition	47,913	77,242	7,869	11,211	1,089	5,831	151,155
Disposal	-	-	( 20,526 )	-	( 2,637 )	-	( 23,163 )
Reclassification	-	-	10,500	187	515	( 11,202 )	-
Balance as of December 31, 2025	$ 47,913	$ 78,021	$ 185,195	$ 18,023	$ 8,626	$ 9,590	$ 347,368
Accumulated depreciation
Balance as of January 1, 2025	$ -	$ 352	$ 54,658	$ 110	$ 3,666	$ -	$ 58,786
Depreciation expense	-	209	30,821	3,743	3,020	-	37,793
Disposal	-	-	( 15,474 )	-	( 2,637 )	-	( 18,111 )
Reclassification	-	-	-	-	-	-	-
Balance as of December 31, 2025	$ -	$ 561	$ 70,005	$ 3,853	$ 4,049	$ -	$ 78,468
Net as of December 31, 2025	$ 47,913	$ 77,460	$ 115,190	$ 14,170	$ 4,577	$ 9,590	$ 268,900

Depreciation expenses are accrued on a straight-line basis over the following useful lives:

Buildings
- Main building: 35 years
- Auxiliary buildings: 30 years
- Machinery and equipment: 2 to 10 years
- Leasehold improvements: 3 to 10 years
- Other equipment: 3 to 5 years

Please refer to Note 26 for the amount of property, plant and equipment pledged for borrowings.

XII. Lease agreement

(I) Right-of-use assets

	Buildings	Transportation equipment	Total
Cost
Balance as of January 1, 2024	$ 10,437	$ 25,686	$ 36,123
Addition	97,024	4,382	101,406
Disposal	( 10,437 )	( 3,767 )	( 14,204 )
Balance as of December 31, 2024	$ 97,024	$ 26,301	$ 123,325
Accumulated depreciation
Balance as of January 1, 2024	$ 5,897	$ 10,350	$ 16,247
Depreciation expense	9,071	8,446	17,517
Disposal	( 8,527 )	( 3,767 )	( 12,294 )
Balance as of December 31, 2024	$ 6,441	$ 15,029	$ 21,470
Net as of December 31, 2024	$ 90,583	$ 11,272	$ 101,855
Cost
Balance as of January 1, 2025	$ 97,024	$ 26,301	$ 123,325
Addition	-	7,967	7,967
Disposal	-	( 10,651 )	( 10,651 )
Balance as of December 31, 2025	$ 97,024	$ 23,617	$ 120,641

	Buildings	Transportation equipment	Total
Accumulated depreciation
Balance as of January 1, 2025	$ 6,441	$ 15,029	$ 21,470
Depreciation expense	9,727	8,287	18,014
Disposal	-	( 10,639 )	( 10,639 )
Balance as of December 31, 2025	$ 16,168	$ 12,677	$ 28,845
Net as of December 31, 2025	$ 80,856	$ 10,940	$ 91,796

(II) Lease Liabilities

	December 31, 2025	December 31, 2024
Lease liabilities carrying amount
Current	$ 14,577	$ 15,825
Non-current	$ 83,269	$ 91,228

The notes payable of the above lease liabilities as of December 31, 2025 and 2024 were NT$0 thousand and NT$228 thousand, respectively.

The range of the discount rate of lease liabilities is as follows:

	December 31, 2025	December 31, 2024
Buildings	2.413%	1.157%~2.413%
Transportation equipment	1.824%~2.49%	2.413%

(III) Important lease-in activities and terms and conditions

The Company leases buildings and company vehicles for a lease term of 3 to 10 years. The Company does not have preferential right to acquire the equipment leased at the end of the lease term.

(IV) Other lease information

	2025	2024
Short-term lease expense	$ 859	$ 3,609
Total cash outflow for leases	($ 20,437)	($ 17,752)

The Company has elected to apply the recognition exemption for certain leases that qualify as short-term leases and low-value asset leases and does not recognize the related right-of-use assets and lease liabilities for such leases.

XIII. Investment Property

	Land and improvements	Buildings and structures	Total
Cost
Balance as of January 1 and December 31, 2024	$ 10,349	$ 3,491	$ 13,840
Accumulated depreciation
Balance as of January 1, 2024	$ -	$ 1,635	$ 1,635
Depreciation expense	-	132	132
Balance as of December 31, 2024	$ -	$ 1,767	$ 1,767
Net as of December 31, 2024	$ 10,349	$ 1,724	$ 12,073
Cost
Balance as of January 1 and December 31, 2025	$ 10,349	$ 3,491	$ 13,840
Accumulated depreciation
Balance as of January 1, 2025	$ -	$ 1,767	$ 1,767
Depreciation expense	-	130	130
Balance as of December 31, 2025	$ -	$ 1,897	$ 1,897
Net as of December 31, 2025	$ 10,349	$ 1,594	$ 11,943

Investment property is depreciated on a straight-line basis over the following useful lives:

Buildings and structures

19 to 30 years

The investment property is leased out for a lease term of 2-3 years. When the lessee exercises the right to renew the lease, it is agreed that the rent will be adjusted according to the market rent. The lessee does not have the preferential right to acquire the investment property at the end of the lease term.

The fair value of investment property is evaluated by the management of the Company using the evaluation model commonly used by market participants. The valuation was conducted with reference to market evidence of transaction prices for similar properties. The fair values as of December 31, 2025 and 2024 were both NTD18,471 thousand.

All of the Company's investment properties are owned by the Company. Please refer to Note 26 for the amount of investment property pledged as collateral for borrowings.

XIV. Borrowings

Long-term borrowings

	December 31, 2025	December 31, 2024
Unsecured borrowings
Bank borrowings	$ 4,153	$ 11,726
Less: Classified as the portion due within 1 year	( 3,689 )	( 7,614 )
Long-term borrowings	$ 464	$ 4,112

The interest rate on bank revolving loans was 2.350% - 2.475% as of December 31, 2025 and 2024, calculated monthly with a 1-period frequency, and amortized over 35 to 46 periods. These loans will mature between May 2026 and November 2027.

XV. Other payables

	December 31, 2025	December 31, 2024
Salaries and bonuses payable	$ 46,751	$ 38,856
Employee remuneration payable	15,312	12,708
Business tax payable	3,598	2,191
Labor service payable	2,188	2,828
Others	9,545	9,864
	$ 77,394	$ 66,447

XVI. Post-employment benefits

Defined contribution pension schemes

The Company's pension system under the "Labor Pension Act" is a state-managed defined contribution pension schemes. Under the Labor Pension Act, the Company makes monthly contributions to employees' individual pension accounts with the Bureau of Labor Insurance at 6% of their monthly salaries and wages.

XVII. Equity

(I) Share capital

Common shares

	December 31, 2025	December 31, 2024
Authorized shares (thousand shares)	100,000	100,000
Authorized share capital	$1,000,000	$1,000,000
Issued and paid shares (in thousands)	66,226	66,226
Issued share capital	$662,260	$662,260

On April 11, 2023, the Company’s Board of Directors resolved to issue 5,994 thousand new shares to increase capital, and on June 29, 2023, the shareholders’ meeting approved the underwriting of the initial public offering, of which 899 thousand shares were reserved for employees. The remaining 5,095 thousand shares were publicly underwritten by the securities underwriter. The Company has collected a total amount of NT$1,018,472 thousand on April 30, 2024, and set April 30, 2024 as the base date for the cash capital increase. On May 17, 2024, the change registration was completed.

The cash capital increase plan reserved 899 thousand shares for employee subscription. On the grant date, a salary expense and a corresponding capital reserve – Employee Stock Options amounting to NT$4,634 thousand were recognized.

(II) Capital reserve

	December 31, 2025	December 31, 2024
Can be used to offset losses, distribute cash or capitalize on share capital (Note)
Stock issuance premium	$ 1,639,536	$ 1,639,536
Expired employee stock options	605	605
	$ 1,640,141	$ 1,640,141

Note: Such capital reserves may be used to make up for losses, and may be distributed in cash or applied to share capital when the Company has no losses. However, the capital reserves applied to the share capital shall not exceed a certain percentage of the Company's paid-in capital each year.

(III) Retained earnings and dividend policy

According to the earnings distribution policy of the Company's Articles of Incorporation, if there is a surplus at the end of the year, it shall first pay tax and make up for past losses, and then appropriate 10% as legal reserve and as special reserve. The portion retained for business needs, together with the undistributed earnings from prior years, is subject to the payment of dividends, and the Board of Directors shall draft a proposal for distribution of earnings and submit it to the shareholders' meeting for resolution. In accordance with paragraph 5, Article 240 of the Company Act, after the Company has publicly offered its shares, if the distribution of dividends and bonuses is entirely or partially in cash, it shall be agreed by more than half of the attending Directors at a Board meeting attended by over two-thirds of the Directors and reported to the shareholders' meeting.

41 -

In accordance with Article 241 of the Company Act, the when the Company distribute the entire or partial legal reserve and capital reserve to shareholders based on the initial shareholding ratio in new shares or in cash. When the distribution is made in cash, it shall be agreed by more than half of the attending Directors at a Board meeting attended by over two-thirds of the Directors and reported to the shareholders' meeting.

The Company's dividend policy is to take into account the Company's future capital needs and cash dividends to shareholders are distributed each year at no less than 30% of the distributable earnings of the current year according to the Company's earnings, financial structure and future operating plans. The annual general shareholders' meeting may still decide the most appropriate dividend distribution method in a timely manner depending on the industry condition and with the Company's interest and development as the top priority.

For the policy on the remuneration of employees and directors and supervisors stipulated by the Company's Articles of Incorporation, please refer to Note 19(6) Employees' remuneration and remuneration of directors and supervisors.

The legal reserve shall be appropriated until the balance reaches the paid-in capital of the Company. Legal reserves may be used to offset losses. If the legal reserve exceeds 25% of the total paid-in capital, and if the Company has no losses, it may be used as capital and distributed in cash.

The Company's earnings distribution proposal for 2024 and 2023 are as follows:

	2024	2023
Legal reserve	$ 45,869	$ 54,842
Reversal of special reserves	($ 493)	($ 123)
Cash dividends	$ 397,356	$ 301,160
Cash dividend per share (NTD)	$ 6.000	$ 4.547

The cash dividends mentioned above were resolved by the Board of Directors on March 13, 2025, and March 15, 2024, respectively. The distribution of earnings for the years 2024 and 2023 was approved by the shareholders' meetings on June 26, 2025, and June 27, 2024, respectively.

The 2025 earnings appropriation was proposed by the Board of Directors on March 10, 2026 as follows:

43 -

	2025
Provision of legal reserve	$ 63,573
Cash dividends	$ 397,356
Stock dividends	$ 132,452
Cash dividend per share (NTD)	$ 6.000
Stock dividend per share (NTD)	$ 2.000

The aforementioned 2025 earnings distribution proposal is yet to be resolved by the shareholders' meeting in June 2026.

XVIII. Income

	2025	2024
Construction of parking lot	$ 436,454	$ 410,583
Equipment maintenance	210,505	166,411
Equipment sales	69,734	89,944
Others	124,923	100,307
	$ 841,616	$ 767,245

(I) Contract balance

	December 31, 2025	December 31, 2024	January 1, 2024
Net receivables (Note 8)	$ 150,535	$ 188,806	$ 140,924
Accounts receivable - Related parties	$ 117,851	$ 148,585	$ 110,146
Contract assets	$ 30,098	$ 14,470	$ 66,097
Contract liabilities
Equipment sales and construction	$ 22,041	$ 9,233	$ 7,200
Others	2,042	956	926
	$ 24,083	$ 10,189	$ 8,126

(II) The change in contract liabilities is mainly from the difference between the time when performance obligations are met and payments made by customers. The revenue from contract liabilities recognized at the beginning of the year in 2025 and 2024 was NT$9,988 thousand and NT$7,935 thousand, respectively.

(III) Contracts with customers not yet completed

The transaction price of the amortization of the performance obligations not yet fully satisfied and the expected time of recognition as revenue are as follows; the amounts do not include the amount of restricted variable consideration:

	December 31, 2025	December 31, 2024
Construction contract
- Performed from January to December, 2025	$ -	$ 14,798
- Performed from January to December, 2026	29,264	-
	$ 29,264	$ 14,798

XIX. Net income for the year

(I) Other income
	2025	2024
Interest revenue	$ 10,926	$ 10,187
Rental income	740	740
Dividend income	95	417
	$ 11,761	$ 11,344
(II) Other gains and losses
	2025	2024
Gain on financial assets at fair value through profit or loss	$ 434	$ 11,965
Net foreign currency exchange gain (loss)	( 1,245 )	791
Gain on disposal of property, plant and equipment	2,175	1,257
Others	1,935	2,066
	$ 3,299	$ 16,079
(III) Depreciation and amortization
	2025	2024
Property, plant and equipment	$ 37,793	$ 27,144
Right-of-use assets	18,014	17,517
Intangible Assets	2,263	1,575
Investment Property	130	132
	$ 58,200	$ 46,368

(To be Continued)

(Continued from previous page)

	2025	2024
Depreciation expenses by function
Operating cost	$ 48,276	$ 36,233
Operating expenses	7,531	8,428
Non-operating income and expenses	130	132
	$ 55,937	$ 44,793
Amortization expenses by function
Operating cost	$ -	$ -
Operating expenses	2,263	1,575
	$ 2,263	$ 1,575
(IV) Financial cost
	2025	2024
Interest on bank borrowings	$ 281	$ 977
Interest on lease liabilities	2,416	1,824
	$ 2,697	$ 2,801
(V) Employee benefit expense
	2025	2024
Post-employment benefits
Defined contribution plan	$ 9,729	$ 9,659
Other employee benefits
Salary expenses	209,960	204,623
Insurance expenses	21,264	20,561
Others	12,801	13,458
	244,025	238,642
Total employee benefit expenses	$ 253,754	$ 248,301
Summary by function
Operating cost	$ 151,753	$ 145,626
Operating expenses	102,001	102,675
	$ 253,754	$ 248,301

(VI) Remuneration to employees and directors/supervisors

In accordance with the Company's Articles of Incorporation, the Company appropriates 2% to 10% of the profit before tax for the fiscal year as the employee remuneration and no more than 2% of it as the director remuneration. According to the amendment to the Securities and Exchange Act in August 2024, the Company's

Articles of Incorporation were amended at the 2025 shareholders' meeting to stipulate that at least 10% of the employee remuneration allocated for the current year shall be allocated to base-level employees.

The remuneration of employees (including remuneration for rank-and-file employees) and of directors and supervisors for 2025 and 2024 were resolved by the Board of Directors on March 10, 2026, and March 13, 2025, respectively. The details are as follows:

Estimated percentage

	2025	2024
Remuneration to employees	2.30%	2,59%
Remuneration to directors	-	-

Amount

	2025		2024
		Cash	Stocks	Cash	Stocks
Remuneration to employees	to	$ 15,312	$ -	$ 12,708	$ -
Remuneration to directors	to	-	-	-	-

If there is still a change in the amount of the annual parent company only financial statements after the publication date, it will be treated as a change in accounting estimates and will be adjusted and accounted for in the following year.

There is no difference between the actual amount of employees' and directors' remuneration paid for 2024 and 2023 and the amount recognized in the financial reports in 2024 and 2023.

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

46 -

XX. Income tax

(I) Main components of income tax expense recognized in profit or loss

	2025	2024
Current income tax
Incurred in the current year	$ 19,724	$ 11,278
Surtax on undistributed earnings	754	9,176
Adjustments from previous years	( 3,194 )	( 4 )
	17,284	20,450
Deferred income tax
Incurred in the current year	( 1,475 )	( 1,056 )
Income tax expense recognized in profit or loss	$ 15,809	$ 19,394

The reconciliation of accounting income and income tax expense is as follows:

	2025	2024
Net profit before tax	$ 651,530	$ 478,083
Income tax expense on net income before tax calculated at statutory tax rate	$ 130,306	$ 95,617
Non-deductible income for tax purposes	( 112,038 )	( 85,311 )
Tax-exempted income	( 19 )	( 83 )
Surtax on undistributed earnings	754	9,176
The current income tax expense of prior years is adjusted in the current year	( 3,194 )	( 5 )
Income tax expense recognized in profit or loss	$ 15,809	$ 19,394

(II) Current income tax assets and liabilities

	December 31, 2025	December 31, 2024
Current income tax assets
Income tax refund receivable	$ 453	$ -
Current income tax liabilities
Income tax payable	$ 14,104	$ 8,725

47 -

(III) Deferred income tax assets and liabilities

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

2025

	Opening balance	Recognized directly in profit or loss	Closing balance
Deferred income tax assets
Temporary difference
Unrealized gross profit from sales	$ 24,283	$ 2,528	$ 26,811
Inventory valuation losses	1,791	( 350 )	1,441
Expected credit loss	156	-	156
	$ 26,230	$ 2,178	$ 28,408
Deferred income tax liabilities
Temporary difference
Unrealized exchange gain or loss	$ 61	($ 24 )	$ 37
Investment under equity method	2,418	727	3,145
	$ 2,479	$ 703	$ 3,182

2024

	Opening balance	Recognized directly in profit or loss	Closing balance
Deferred income tax assets
Temporary difference
Unrealized gross profit from sales	$ 22,414	$ 1,869	$ 24,283
Inventory valuation losses	1,925	( 134 )	1,791
Expected credit loss	156	-	156
	$ 24,495	$ 1,735	$ 26,230
Deferred income tax liabilities
Temporary difference
Unrealized exchange gain or loss	$ 5	$ 56	$ 61
Investment under equity method	1,795	623	2,418
	$ 1,800	$ 679	$ 2,479

49 -

(IV) Authorization of income tax

The Company's tax returns up to 2023 have been approved by the tax authorities.

XXI. Earnings per share

	Unit: NTD per share
	2025	2024
Basic earnings per share	$ 9.60	$ 7.14
Diluted earnings per share	$ 9.58	$ 7.12

The earnings and the weighted average number of common shares used to calculate the earnings per share are as follows:

Net income for the year

	2025	2024
Net	$ 635,721	$ 458,689

Number of shares Unit: Thousand shares

	2025	2024
Weighted average number of ordinary shares used to calculate basic earnings per share	66,226	64,261
Effect of dilutive potential ordinary shares:
Remuneration to employees	127	176
Weighted average number of ordinary shares used in the computation of diluted earnings per share	66,353	64,437

If the Company may choose to pay employees' remuneration in shares or cash, then when calculating the diluted earnings per share, it is assumed that the employees' remuneration will be paid in shares, and when such potential common shares have a diluting effect, they will be included in the weighted average number of shares outstanding for calculating diluted earnings per share. The dilutive effect of these potential ordinary shares will also be considered when calculating the diluted earnings per share before the Board of Directors resolves the number of shares to be distributed to employees in the following year.

XXII. Cash flow information

Changes in liabilities from financing activities

2025

	January 1, 2025	Cash flow from financing activities	Non-cash changes				Cash flow from operating activities - interest payment	December 31, 2025
			Newly added lease	Interest	Reclassification	Others
Lease liabilities (including current and non-current)	$ 107,053	($ 17,162)	$ 7,967	$ 2,416	$ -	($ 12)	($ 2,416)	$ 97,846
Short-term borrowings	-	-	-	92	-	-	( 92)	-
Long-term borrowings	4,112	-	-	189	( 3,648 )	15	( 204 )	464
Guarantee deposits received	6,523	16	-	-	-	-	-	6,539
Long-term borrowings due within one year	7,614	( 7,573 )	-	-	3,648	-	-	3,689
	$ 125,302	($ 24,719 )	$ 7,967	$ 2,697	$ -	$ 3	($ 2,712 )	$ 108,538

2024

	January 1, 2024	Cash flow from financing activities	Non-cash changes				Cash flow from operating activities - interest payment	December 31, 2025
			Newly added lease	Interest	Reclassification	Others
Lease liabilities (including current and non-current)	$ 19,948	($ 12,319)	$ 101,406	$ 1,824	$ -	($ 1,982)	($ 1,824)	$ 107,053
Short-term borrowings	-	-	-	2	-	-	( 2 )	-
Long-term borrowings	48,421	( 18,016 )	-	975	( 26,293 )	12	( 987 )	4,112
Guarantee deposits received	7,026	( 503 )	-	-	-	-	-	6,523
Long-term borrowings due within one year	19,656	( 38,335 )	-	-	26,293	-	-	7,614
	$ 95,051	($ 69,173 )	$ 101,406	$ 2,801	$ -	($ 1,970 )	($ 2,813 )	$ 125,302

XXIII. Capital risk management

The Company conducts capital management to ensure that it can maximize shareholder returns by optimizing the balance of debt and equity under the premise of continuing to operate. The Company's overall strategy has not changed in the past two years.

The Company's capital structure consists of net debt (i.e. borrowings less cash and cash equivalents) and equity (i.e. capital stock, capital reserve, retained earnings and other equity items).

The Company is not subject to other external capital requirements.

XXIV. Financial Instruments

(I) Fair value - financial instruments measured at fair value on a recurring basis

Fair value hierarchy

December 31, 2025

	Level 1	Level 2	Level 3	Total
Financial assets measured at fair value through profit or loss
Domestic TPEx listed stocks	$ 5,307	$ -	$ -	$ 5,307
December 31, 2024
	Level 1	Level 2	Level 3	Total
Financial assets measured at fair value through profit or loss
Domestic TPEx listed stocks	$ 4,873	$ -	$ -	$ 4,873

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

(II) Type of financial instruments

	December 31, 2025	December 31, 2024
Financial assets
Financial assets measured at fair value through profit or loss	$ 5,307	$ 4,873
Financial assets measured at amortized cost (Note 1)	757,902	1,224,033
Financial liabilities
Measured at amortized cost (Note 2)	141,250	169,409

Note 1: The balance includes the financial assets measured at amortized cost, such as, cash and cash equivalents, notes and accounts receivable (including related parties), other receivables (including related parties), refundable deposits, long-term receivables, and other financial assets - non-current.

Note 2: The balance includes the financial liabilities measured at amortized cost, such as, notes payable, accounts payable (including related parties), other payables (including related parties excluding business tax payable), long-term borrowings (including those due within one year), and guarantee deposits received.

(III) Financial risk management objectives and policies

The Company's main financial instruments include investments in equity and debt instruments, accounts receivable, accounts payable and borrowings. The Company's financial management department provides services for various business units, coordinates the operations in the domestic and international financial markets, and supervises and manages the financial risks related to the Company's operations through the internal risk report that analyzes exposures according to the level and breadth of risks. Such risks include market risk (including exchange rate risk and interest rate risk), credit risk and liquidity risk.

Market risk

The main financial risks of the Company's operating activities are the risk of changes in foreign currency exchange rates (see (1) below) and the risk of changes in interest rates (see (2) below).

(1) Exchange rate risk

The Company engages in sales and purchase transactions denominated in foreign currencies, which expose the Company to the risk of exchange rate changes. For exchange rate risk management, the Company regularly reviews assets and liabilities affected by exchange rates and makes appropriate adjustments to control the risks generated by foreign exchange fluctuations.

Please refer to Note 27 for the carrying amounts of monetary assets and liabilities denominated in non-functional currencies of the Company at the balance sheet date.

Sensitivity analysis

The Company is mainly affected by fluctuations in the US dollar exchange rate.

The following table details the sensitivity analysis of the Company when the exchange rate of NTD (the functional currency) increases and decreases by 1% against each relevant foreign currency. The 1% sensitivity rate is used internally when reporting exchange rate risk to key management personnel and represents management's assessment of the reasonable and possible range of changes in foreign currency exchange rates. The sensitivity analysis includes only outstanding monetary items in foreign currencies, and the translation at the end of the year is adjusted

52 -

based on a 1% change in exchange rates. The positive numbers in the following table represent the amount of increase in net profit before tax when NTD strengthens by 1% against each relevant currency; when NTD depreciates by 1% against each relevant foreign currency, the impact on net profit before tax will be the same amount as the negative number.

	2025	2024
Profit or loss USD	($ 490)	($ 221)

(2) Interest rate risk

Because the Company borrows funds at fixed and floating interest rates at the same time, resulting in interest rate risk exposure. The Company manages the interest rate risk by maintaining an appropriate combination of fixed and floating interest rates.

The carrying amounts of the Company's financial assets and financial liabilities with exposure to the interest rate risk at the balance sheet date are as follows:

	December 31, 2025	December 31, 2024
Fair value interest rate risk
- Financial assets	$ 351,960	$ 453,518
- Financial liabilities	104,385	113,576
Cash flow interest rate risk
- Financial assets	214,395	519,887
- Financial liabilities	4,153	11,726

Sensitivity analysis

The following sensitivity analysis is determined based on the interest rate risk exposure of the non-derivative instruments at the balance sheet date. For liabilities with floating interest rates, the analysis method is based on the assumption that the amount of liabilities outstanding at the balance sheet date is outstanding during the reporting period. The rate of change used in reporting interest rates to key management within the Group is an increase or decrease of 0.5%, which also represents management's assessment of the reasonably possible range of interest rates.

53 -

If the interest rate increased by 0.5%, and all other variables remain unchanged, the Company's net income before tax for 2025 and 2024 would have increased by NT$1,051 thousand and NT$2,541 thousand, respectively, mainly due to the Company's deposits and borrowings with variable interest rates. When the interest rate is reduced by 0.5%, the impact is a negative number of the same amount.

2. Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Company. As of the balance sheet date, the Company's maximum exposure to credit risk of financial loss due to the counterparty's failure to perform its obligations and the Company's provision of financial guarantees is mainly from:

The carrying amount of financial assets recognized in the individual balance sheet.
The amount of contingent liabilities arising from financial guarantees provided by the Company.

The policy adopted by the Company is to conduct transactions only with counterparties with good credit ratings, and obtain sufficient guarantees under necessary circumstances to mitigate the risk of financial losses due to defaults. The Company conducts credit investigation and credit analysis of its counterparties, and then grants appropriate credit lines based on the counterparties' transaction types, financial status, collateral conditions, and will make adjustments from time to time depending on the credit status of the transaction counterparties. This is for effective control of credit exposure risk.

Except for customers with single counterparty reaching 10%, the Company does not have significant credit exposure to any single counterparty or any group of counterparties with similar characteristics. In the balances of receivables, trade receivables from related parties, and long-term receivables as of December 31, 2025 and 2024, the total accounts receivable of the aforementioned customer groups was NT$160,424 thousand and NT$192,326 thousand, accounting for 60% and 57%, respectively.

3. Liquidity risk

The Company manages and maintains sufficient cash and cash equivalents to support group operations and mitigate the impact of cash flow fluctuations.

54 -

The Company's management supervises the use of bank financing facilities and ensures compliance with the terms of the loan contract.

Bank borrowings are an important source of liquidity for the Company. For the Company's unused financing facilities as of December 31, 2025 and 2024, please refer to the description of (2) financing facilities below.

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

The remaining contractual maturity analysis of non-derivative financial liabilities was based on the earliest date at which the Company might be required to repay and was compiled based on the undiscounted cash flows of financial liabilities (including principal and estimated interest). Therefore, the bank borrowings that the Company may be required to repay immediately are shown in the earliest period below, regardless of the probability that the bank will immediately exercise the right; the maturity analysis of other non-derivative financial liabilities is prepared based on the agreed repayment dates.

For the interest cash flow paid with floating interest rate, the undiscounted interest amount is inferred based on the interest rate on the balance sheet date.

55 -

December 31, 2025

	Less than 1 year	1 to 2 years	2 to 5 years	5 to 10 years	More than 10 years
Non-interest-bearing liabilities	$ 130,558	$ -	$ -	$ -	$ -
Instruments with floating interest rates	3,726	470	-	-	-
Guarantee deposits received	847	1,368	3,694	630	-
Lease liabilities	16,735	14,477	34,191	42,221	-
Financial Guarantee	955,000	-	-	-	-
	$1,106,866	$ 16,315	$ 37,885	$ 42,851	$ -

December 31, 2024

	Less than 1 year	1 to 2 years	2 to 5 years	5 to 10 years	More than 10 years
Non-interest-bearing liabilities	$ 151,160	$ -	$ -	$ -	$ -
Instruments with floating interest rates	7,817	3,726	427	-	-
Guarantee deposits received	650	552	4,743	578	-
Lease liabilities	18,160	13,752	33,756	53,303	-
Financial Guarantee	882,045	-	-	-	-
	$1,059,832	$ 18,030	$ 38,926	$ 53,881	$ -

The amount of floating interest rate instruments for the above non-derivative financial assets and liabilities will change due to the difference between the floating interest rate and the estimated interest rate on the balance sheet date.

(2) Financing limit

	December 31, 2025	December 31, 2024
Credit loans
- Amount used	$ 4,153	$ 11,726
- Undrawn amount	250,000	179,000
Secured borrowings
- Amount used	-	-
- Undrawn amount	46,600	46,600
	$ 300,753	$ 237,326

XXV. Transactions with related parties

The transactions between the Company and the related parties are as follows:

(I) Names of related parties and their relationships

Name of related party	Relationship with the Company
PSS Group (Thailand) Co., Ltd.	Affiliated enterprise
Yua-Yung Co., Ltd. (Yua-Yung Company)	Subsidiary
Horng Suey Marketing Co., Ltd. (Horng Suey Company)	Subsidiary
CANYI CO., LTD. (Canyi Company)	Subsidiary
Cathay Life Insurance Co., Ltd.	Investors with significant influence
Cathay United Bank	Other related parties
Cathay Century Insurance Co., Ltd.	Other related parties
Cathay Real Estate Development Co., Ltd.	Other related parties
Cathay Medical Care Corp.	Other related parties
Lin Yuan Property Management Co., Ltd	Other related parties
San Ching Engineering Co., Ltd	Other related parties

(II) Operating revenue

Category/Name of related party	2025	2024
Subsidiary
Horng Suey Company	$ 262,987	$ 222,963
Yua-Yung Company	159,953	161,183
Canyi Company	1,560	1,737
	424,500	385,883
Affiliated enterprise	7,515	1,886
Investors with significant influence	13,029	8,670
Other related parties	19,488	22,067
	$ 464,532	$ 418,506

The conditions for the transaction of operating revenue between the Company and the related party are the same as those of the general transaction.

(III) Purchase of goods

Category/Name of related party	2025	2024
Affiliated enterprise
PSS Group (Thailand)
Co., Ltd.	$ 1,646	$ -

The Company purchases from related parties at the general purchase price and conditions.

(IV) Operating cost

58 -

Ledger item	Category/Name of related party	2025	2024
Cost of service	Subsidiary
	Horng Suey Company	$ 1,685	$ 5,584
	Yua-Yung Company	4,077	3,931
		5,762	9,515
	Other related parties	494	248
	Investors with significant influence	1,831	673
		$ 8,087	$ 10,436

The conditions for the transaction of operating cost between the Company and the related party are the same as those of the general transaction.

(V) Receivables from related parties

Ledger item	Category/Name of related party	December 31, 2025	December 31, 2024
Accounts receivable	Subsidiary
	Horng Suey Company	$ 65,109	$ 63,161
	Yua-Yung Company	46,229	79,528
	Company
	Others	410	414
		111,748	143,103
	Affiliated enterprise	5,128	115
	Investors with significant influence	420	2,099
	Other related parties	555	3,268
		$ 117,851	$ 148,585
Other receivables	Subsidiary
	Horng Suey Company	$ 1,976	$ 2,594
	Yua-Yung Company	1,373	1,596
		$ 3,349	$ 4,190

No guarantee is received for the accounts receivable from related parties still outstanding.

(VI) Payables to related parties

Ledger item	Category/Name of related party	December 31, 2025	December 31, 2024
Notes payable	Investors with significant influence	$ 2,000	$ 2,000
Accounts payable	Subsidiary
	Yua-Yung	$ 356	$ 330
	Company
	Horng Suey Company	139	466
Other payables	Other related parties	$ 495	$ 796

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

(VII) Bank deposits

Ledger item	Category/Name of related party	December 31, 2025	December 31, 2024
Demand deposits	Cathay United Bank	$ 88,582	$ 115,504
Other financial assets - non-current	Cathay United Bank	$ 5,781	$ 11,679

(VIII) Loans to related parties (accounted for as other receivables - related parties)

Category/Name of related party	December 31, 2025	December 31, 2024
Other receivables
Affiliated enterprise	$ 31,970	$ 21,607

In response to the working capital needs of the affiliated company PSS Group (Thailand), the Company's Board of Directors approved additional loan facility limits of NT$15,000 thousand, USD 500 thousand, USD 500 thousand and USD 500 thousand on August 7, 2024, March 13, 2025, August 11, 2025 and March 10, 2026, respectively.

Category/Name of related party	2025	2024
Interest revenue
Affiliated enterprise	$ 847	$ 368

The Company provides financing to affiliates, and the interest rate is close to the market.

(IX) Operating expenses

Ledger item	Category/Name of related party	2025	2024
Other expenses	Other related parties	$ 195	$ 979
	Investors with significant influence	951	1,153
		$ 1,146	$ 2,132

(X) Disposal of property, plant and equipment

Category/Name of related party	Disposal price		Disposal of gains (losses)
	2025	2024	2025	2024
Other related parties	$ 68	$ -	$ 59	$ -

(XI) Refundable deposits

Category of related party	2025	2024
Investors with significant influence
Cathay Life Insurance Co., Ltd.	$ 5,482	$ 5,482
Other related parties	243	243
	$ 5,725	$ 5,725

(XII) Lease agreement

It is mainly due to the rent paid by the Company for leasing offices and parking spaces from other related parties. The rent is paid on a monthly basis with reference to the general market price.

Category/Name of related party	2025	2024
Acquisition of right-of-use assets
Investors with significant influence
Cathay Life Insurance Co., Ltd.	$ -	$ 96,003
Other related parties
Cathay Real Estate Development Co., Ltd.	-	1,020
	$ -	$ 97,023

Ledger item	Category/Name of related party	December 31, 2025	December 31, 2024
Lease liabilities	Investors with significant influence
	Cathay Life Insurance Co., Ltd.	$ 86,670	$ 94,937
	Other related parties
	Cathay Real Estate Development Co., Ltd.	217	728
		$ 86,887	$ 95,665
Category/Name of related party	2025		2024
Interest expense
Investors with significant influence
Cathay Life Insurance Co., Ltd.	$ 2,179		$ 1,545
Other related parties	11		12
	$ 2,190		$ 1,557
Lease cost
Subsidiary	$ -		$ 1,127
Rent expense
Subsidiary	$ -		$ 25
Investors with significant influence	214		188
	$ 214		$ 213

(XIII) Others

Ledger item	Category/Name of related party	2025	2024
Other income	Subsidiary
	Horng Suey Company	$ 1,421	$ 1,537
	Yua-Yung Company	648	720
		$ 2,069	$ 2,257
Interest revenue	Investors with significant influence	$ 60	$ 32
	Other related parties	748	666
		$ 808	$ 698

(XIV) Endorsements and guarantees

Making endorsements/guarantees for others

	December 31, 2025		December 31, 2024
	Guarantee amount	Amount of disbursement	Guarantee amount	Amount of disbursement
Category/Name of related party
Horng	$ 455,000	$ 141,364	$ 442,045	$ 136,146
Suey Company
Yua-Yung	$ 500,000	$ 70,427	$ 440,000	$ 70,409
Company

(XV) Remuneration of key management personnel

	2025	2024
Short-term employee benefits	$ 37,701	$ 33,647
Post-employment benefits	868	864
	$ 38,569	$ 34,511

XXVI. Pledged assets

The following assets have been provided as the collateral for the construction project of the parking lot and the loan facility for financing:

	December 31, 2025	December 31, 2024
Other financial assets - non-current	$ 6,462	$ 11,679
Investment property - net	11,943	12,073
Property, plant and equipment - net	402	427
	$ 18,807	$ 24,179

XXVII. Significant assets and liabilities denominated in foreign currencies

The information below is summarized and expressed in foreign currencies other than the Company's functional currency. The exchange rates disclosed refer to the rates at which these foreign currencies are converted to the functional currency. The significant assets and liabilities denominated in foreign currencies are as follows:

December 31, 2025

	Foreign currency (in thousands)	Exchange rate	Carrying amount
Assets denominated in foreign currencies
Monetary items
USD	$ 1,559	31.43 (USD:NTD)	$ 48,999
THB	213	1.0019 (THB:NTD)	213
Non-monetary items
Affiliates accounted for using the equity method
THB	$ 24,226	1.0019 (THB:NTD)	$ 24,272

December 31, 2024

	Foreign currency (in thousands)	Exchange rate	Carrying amount
Assets denominated in foreign currencies
Monetary items
USD	$ 676	32.785 (USD:NTD)	$ 22,149
THB	213	0.962 (THB:NTD)	205
Non-monetary items
Affiliates accounted for using the equity method
THB	20,402	0.962 (THB:NTD)	19,633

63 -

The Company is mainly exposed to the foreign currency exchange rate risk in USD. The following information is aggregated and expressed according to the functional currency of the entities holding foreign currencies. The exchange rate disclosed refers to the exchange rate at which the functional currency is converted to the presentation currency. The realized and unrealized foreign currency exchange gains and losses with a material impact are as follows:

	2025		2024
Functional currency	Functional currency against presentation currency	Net foreign exchange gain (loss)	Functional currency against presentation currency	Net foreign exchange gain (loss)
NTD	1 (NTD: NTD)	($ 1,245)	1 (NTD: NTD)	$ 791

XXVIII. Additional disclosures

(I) Information on significant transactions

Loaning of funds to others. (Table 1)
Making endorsements/guarantees for others. (Table 2)
Material marketable securities held at the end of the period (excluding investment in subsidiaries). (Table 3)
Total purchases from and sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital. (Table 4)
Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital. (None)

(II) Information Related to Invested Businesses (Table 5)

(III) Information on investment in the China

Disclose information on the investee company, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, shareholding ratio, profit or loss for the period and recognized investment gain or loss, carrying amount of the investment at the end of the period, repatriated investment gains, and limit on the amount of investment in the Mainland Area. (None)
Any of the following significant transactions with investee companies in the Mainland Area, either directly or indirectly through a third area, and their prices, payment terms, and unrealized gains or losses: None.

(1) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period.

64 -

(2) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period.

(3) The amount of property transactions and the amount of the resultant gains or losses.

(4) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and the purposes.

(5) The highest balance, the end of period balance, the interest rate range, and total current period interest with respect to financing of funds.

(6) Other transactions that have a material effect on the profit or loss for the current period or on the financial position, such as the rendering or receiving of services.

65 -

PSS Co., Ltd. and investee

Loaning of Funds to Others

January 1 to December 31, 2025

Table 1
Unit: NTD thousands

Serial number (Note 1)	Loaning company	Borrower	Transacting account	Related party	The highest balance in the current year	Closing balance	Amount actually drawn	Interest rate range	Nature of loan	Business transaction amount	Reasons for the necessity of short-term financing	Allowance for bad debt	Collateral		Limit of loans to individual borrowers (Note 2)	Total limit of loans (Note 3)
													Name	Value
0	PSS Co., Ltd.	PSS Group (Thailand) Co., Ltd.	Other receivables - Related parties	Yes	$ 54,317 (US$ 1,650 thousand)	$ 31,430 (US$ 1,000 thousand)	$ 31,430 (US$1,000 thousand)	3.00%	Short-term financing	$ -	Aid to operating turnover	$ -	-	$ -	$ 369,526	$ 1,478,105

Note 1: The description of the number column is as follows:
(1) Fill in '0' for issuers.
(2) The investee companies are numbered sequentially from 1 based on each company.
Note 2: For short-term financing facilities, the individual loan amount may not exceed 10% of the enterprise's net worth.
Note 3: For short-term financing facilities, the total loan amount may not exceed 40% of the enterprise's net worth.

PSS Co., Ltd. and investee

Making endorsements/guarantees for others

January 1 to December 31, 2025

Table 2
Unit: NTD thousands

Serial number (Note)	Endorsing/ guaranteeing company name	Counterparty of endorsements/guarantees		Endorsement and guarantee limit for a single enterprise	The maximum balance of endorsements/guarantees for the current year	Balance of endorsements/guarantees at the end of the year	Amount actually drawn	Endorsement/guarantee amount secured by property	Ratio of accumulated endorsement/guarantee amount to net worth as stated in the most recent financial statements (%)	Maximum amount of endorsements/guarantees	Endorsement/guarantee provided by the parent company to the subsidiary	Subsidiary endorsement and guarantee to parent company	Endorsements and guarantees in Mainland China
		Company name	Relationship
0	PSS Co., Ltd.	Yua-Yung Co., Ltd.	Subsidiary	$ 2,586,684	$ 530,000	$ 500,000	$ 70,427	$ -	13.53%	$ 2,586,684	Yes	No	No
0	PSS Co., Ltd.	Horng Suey Marketing Co., Ltd.	Subsidiary	2,586,684	487,045	455,000	141,364	-	12.31%	2,586,684	Yes	No	No

Note 1: The description of the number column is as follows:
(1) Fill in "0" for issuers.
(2) The investee companies are numbered sequentially from 1 based on each company.
Note 2: According to the "Regulations Governing Endorsement and Guarantee" of the Company, the maximum amount of endorsements/guarantees for others and the limit of endorsements/guarantees for one single enterprise are capped at 70% of the company's net worth.

PSS Co., Ltd. and investee

Material marketable securities held at the end of the period

December 31, 2025

Table 3
Unit: NTD thousands

Companies held	Type and name of marketable securities	Relationship with the securities issuer	Ledger account	End of period				Remarks
				Number of shares	Carrying amount	Shareholding ratio	Fair value
PSS Co., Ltd.	Turn Cloud Technology Service Inc.	—	Financial assets measured at fair value through profit or loss - Non-Current	22,440	$ 5,307	0.10%	$ 5,307	Note
Yua-Yung Co., Ltd.	WEBPOS TECHNOLOGY CO., LTD.	—	Financial assets measured at fair value through profit or loss - Non-Current	50,000	500	5.00%	500	Note

Note: Financial assets measured at fair value through profit or loss is the fair value calculated based on the input value and valuation method.

68 -

PSS Co., Ltd. and investee

Total purchases from and sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital

2025

Table 4

Unit: NTD thousands

Buyer/Seller	Name of counterparty	Relationship	Transaction status				Circumstances and reasons for the difference between the transaction conditions and general transactions		Notes and accounts receivable (payable)
			Purchase/Sale	Amount	Percentage to total purchase (sale)	Credit Period	Unit price	Credit Period	Balance	Percentage of total notes and accounts receivable (payable)
PSS Co., Ltd.	Horng Suey Marketing Co., Ltd.	Subsidiary	Operating revenue	($ 262,987)	( 31%)	In accordance with the agreed terms	-	-	Accounts receivable $ 65,109	24%
Horng Suey Marketing Co., Ltd.	PSS Co., Ltd.	Parent company	Property, plant and equipment and operating costs	262,987	10%	In accordance with the agreed terms	-	-	Accounts payable ( 65,109)	( 60%)
PSS Co., Ltd.	Yua-Yung Co., Ltd.	Subsidiary	Operating revenue	( 159,953)	( 19%)	In accordance with the agreed terms	-	-	Accounts receivable 46,229	17%
Yua-Yung Co., Ltd.	PSS Co., Ltd.	Parent company	Property, plant and equipment and operating costs	159,953	10%	In accordance with the agreed terms	-	-	Accounts payable ( 46,229)	( 50%)

69 -

PSS Co., Ltd. and investee

Name, location, and other relevant information of investees

January 1 to December 31, 2025

Table 5
Unit: NTD thousands

Name of investor	Name of investee	Location of the company	Main business items	Initial investment amount		Held at the end of the year			Current income (losses) of the investee	Investment gain (loss) recognized for the year	Remarks
				End of the year	End of previous year	Number of shares (share)	Ratio (%)	Carrying amount
PSS Co., Ltd.	Horng Suey Marketing Co., Ltd.	Taiwan	Parking area operators	$ 410,284	$ 410,284	97,550,000	100	$ 1,479,418	$ 376,720	$ 376,720	Notes 1 and 3
PSS Co., Ltd.	Yua-Yung Co., Ltd.	Taiwan	Parking area operators	459,408	459,408	75,380,000	100	1,037,970	181,062	181,062	Notes 1 and 3
PSS Co., Ltd.	CANYI CO., LTD.	Taiwan	Parking area operators	36,000	36,000	3,000,000	30	37,976	6,608	1,982	Notes 1 and 3
PSS Co., Ltd.	PSS Group (Thailand) Co., Ltd.	Thailand	Manufacturing and sales of automated machinery and equipment	THB 7,350 thousand	THB 7,350 thousand	73,500	49	24,272	6,168	3,635	Notes 2 and 3
Horng Suey Marketing Co., Ltd.	CANYI CO., LTD.	Taiwan	Parking area operators	84,000	84,000	7,000,000	70	89,816	6,608	4,626	Notes 1 and 3

Note 1: Subsidiary
Note 2: The Company's investees accounted for using the equity method.
Note 3: Calculated based on each company's 2025 audited financial statements.

71 -

§ Table of Contents of Significant Accounting Items

ITEM	NUMBER/INDEX
Statement of Assets and Liabilities
Statement of Cash	Statement 1
Statement of Accounts Receivable	Statement 2
Statement of Inventories	Statement 3
Statement of Changes in Investment Using Equity Method	Statement 4
Statement of Changes in Property, Plant and Equipment	Note 11
Statement of Changes in Right-of-use Assets	Note 12
Statement of Notes and Accounts Payable	Statement 5
Statement of other payables	Note 15
Statement of long-term borrowings	Statement 6
Statement of Profit and Loss Items
Statement of Operating Revenue	Statement 7
Statement of Operating Cost	Statement 8
Statement of Operating Expenses	Statement 9
Statement of other gains and losses	Note 19
Statement of finance cost	Note 19
Statement of employee benefits, depreciation, and amortization expenses for the year by function	Statement 10

PSS Co., Ltd.
Cash and Cash Equivalents Schedule
December 31, 2025

Statement1
Unit: In Thousands of NTD, Unless Stated Otherwise

Item	Interest rate (%)	Amount
Cash on hand		$ 75
Bank deposits
Demand deposits
(Note)	0.005~0.705	214,395
Time deposits	1.28~1.75	200,000
Total		$ 414,470

Note: Including RMB 2 thousand, USD 379 thousand, and THB 213 thousand, converted at the exchange rates of CNY$1=NTD$4.496, USD$1=NTD$31.43, and THB$1=NTD$1.0019, respectively.

72 -

PSS Co., Ltd.
Statement of Accounts Receivable
December 31, 2025

Statement 2
Unit: NTD thousands

Customer Code	Amount
Company A	$ 65,109
Company B	49,086
Company C	46,229
Others (Note)	116,901
	277,325
Less: Loss allowance	( 85 )
Unearned financing income	( 8,854 )
	268,386
Less: Classified as long-term receivables	( 60,893 )
	$ 207,493

Note: The balance of each account did not exceed 5% of the balance of this account.

73 -

PSS Co., Ltd.
Statement of Inventories
December 31, 2025

Statement 3
Unit: NTD thousands

Item	Amount
	Cost	Market price (Note)
Raw materials	$ 49,047	$ 49,324
Work in progress	131,949	131,949
Finished goods	13,948	20,747
Subtotal	194,944	$ 202,020
Less: Allowance for valuation losses on inventories	( 7,209 )
Total	$ 187,735

Note: The market price is determined based on the net realizable value.

74 -

PSS Co., Ltd.
Statement of Changes in Investment Using Equity Method
January 1 to December 31, 2025

Statement 4

Unit: In Thousands of NTD
Unless Stated Otherwise

	Face value per share (NTD)	Opening balance			Changes in the current year							Transaction of equity-based payment	Closing balance			Net value of equity
		Number of shares (share)	Shareholding %	Amount	Increase		Decrease		Investment income (loss)	Unrealized gains	Accumulated translation adjustment		Number of shares (share)	Shareholding %	Amount
					Number of shares	Amount	Number of shares	Amount
Priced under equity method - Non-listed (OTC) company Yua-Yung Co., Ltd	$ 10	59,980,000	100%	$ 864,071	15,400,000	$ -	-	($ 140)	$ 181,062	($ 7,023)	$ -	$ -	75,380,000	100%	$1,037,970	$1,088,668
Horng Suey Marketing Co., Ltd.	10	75,750,000	100%	1,108,815	21,800,000	-	-	( 139)	376,720	( 5,978)	-	-	97,550,000	100%	1,479,418	1,562,259
CANYI CO., LTD.	10	3,000,000	30%	36,518	-	-	-	( 887)	1,982	363	-	-	3,000,000	30%	37,976	38,493
PSS Group (Thailand) Co., Ltd.	THB100	73,500	49%	19,633	-	-	-	-	3,635	-	1,004	-	73,500	49%	24,272	24,634
				$2,029,037		$ -		($ 1,166)	$ 563,399	($ 12,638)	$ 1,004	$ -			$2,579,636	$2,714,054

Note: Calculated based on the invested company's financial statements audited by the CPA during the same period.

PSS Co., Ltd.
Statement of Notes and Accounts Payable
December 31, 2025

Statement 5
Unit: NTD thousands

Manufacturer Code	Amount
Vendor A	$ 6,360
Vendor B	3,817
Others (Note)	46,481
	$ 56,658

Note: The balance of each account did not exceed 5% of the balance of this account.

76 -

PSS Co., Ltd.
Statement of long-term borrowings
December 31, 2025

Statement 6

Unit: In Thousands of NTD, Unless Stated Otherwise

Name	Term	Method of repayment	Interest rate per annum (%)	Due within one year	Expires in one year	Total	Pledge or guarantee
Taiwan Cooperative Bank	2021.05.07~2026.05.07	The interest is paid monthly for one year from the borrowing date without amortization, and the principal and interest are repaid on a monthly basis in accordance with the annuity method at maturity. As a flexible interest rate is adopted, it is adjusted at any time with the interest rate.	2.475%	$ 3,194	$ -	$ 3,194	None
E.SUN Bank	2024.11.01~2027.11.01	The interest is paid monthly for one year from the borrowing date without amortization, and the principal and interest are repaid on a monthly basis in accordance with the annuity method at maturity. As a flexible interest rate is adopted, it is adjusted at any time with the interest rate.	2.35%	495	464	959	None
				$ 3,689	$ 464	$ 4,153

77 -

PSS Co., Ltd.
Statement of Operating Revenue
January 1 to December 31, 2025

Statement 7
Unit: NTD thousands

Item	Quantity (piece)	Amount
Construction of parking lot		$ 437,787
Equipment maintenance income		210,620
Equipment sales	76,810	71,530
Other income		125,266
Sales returns and allowances		( 3,587 )
		$ 841,616

78 -

PSS Co., Ltd.
Statement of Operating Cost
January 1 to December 31, 2025

Statement 8
Unit: NTD thousands

Item	Amount
Direct raw materials
Raw materials at the beginning of the year	$ 54,386
Feeding of materials	276,050
Raw materials at the end of the year	( 49,047 )
Transfer expense	( 35,008 )
Consumption of direct raw materials	246,381
Direct labor	11,456
Manufacturing overhead	161,253
Manufacturing cost	419,090
Work-in-progress and semi-finished goods at the beginning of the year	93,432
Year-end work-in-progress and semi-finished products	( 131,949 )
Cost of finished goods and merchandise	380,573
Finished goods and merchandise, beginning of the year	13,033
Finished goods and merchandise, year-end	( 13,948 )
Transfer expense	( 27,900 )
Cost of goods sold	351,758
Other operating costs	252,905
Total	$ 604,663

79 -

PSS Co., Ltd.
Statement of Operating Expenses
January 1 to December 31, 2025
Statement 9
Unit: NTD thousands

Item	Sales expenses	Administrative expenses	R&D expenses	Total
Salary	$ 19,895	$ 41,592	$ 25,032	$ 86,519
Research expenses	-	-	2,175	2,175
Labor costs	-	6,617	1,193	7,810
Depreciation expense	1,009	4,695	1,827	7,531
Insurance premiums	1,546	3,186	2,674	7,406
Entertainment expenses	2,055	1,390	20	3,465
Processing fees	8,146	92	-	8,238
Others (Note)	4,111	13,352	7,940	25,403
	$ 36,762	$ 70,924	$ 40,861	$ 148,547

Note: Each amount did not exceed 5% of the amount in this account.

80 -

PSS Co., Ltd.
Functional summary of employee benefits, depreciation and amortization expenses incurred in the current year
January 1 to December 31, 2025 and 2024

Statement 10
Unit: In Thousands of NTD, Unless Stated Otherwise

Name	2025				2024
	Attributable to operating costs	Attributable to operating expenses	Attributable to other losses	Total	Attributable to operating costs	Attributable to operating expenses	Attributable to other losses	Total
Employee benefit expense
Salary expenses	$ 123,441	$ 80,702	$ -	$ 204,143	$ 118,001	$ 80,706	$ -	$ 198,707
Insurance expenses	14,022	7,242	-	21,264	13,598	6,963	-	20,561
Pension expense	6,417	3,204	-	9,621	6,314	3,345	-	9,659
Directors' Remuneration	-	5,925	-	5,925	-	5,916	-	5,916
Other employee benefit expenses	7,873	4,928	-	12,801	7,713	5,745	-	13,458
	$ 151,753	$ 102,001	$ -	$ 253,754	$ 145,626	$ 102,675	$ -	$ 248,301
Depreciation expense	$ 48,276	$ 7,531	$ 130	$ 55,937	$ 36,233	$ 8,428	$ 132	$ 44,793
Amortization expense	$ -	$ 2,263	$ -	$ 2,263	$ -	$ 1,575	$ -	$ 1,575

Notes

The number of employees for the current year and the previous year were 267 and 285, of which the number of directors who did not serve as employees concurrently was 5 for both years.
(1) The average employee benefits expense for the current year was NT$946 thousand; the average employee benefits expense for the previous year was NT$866 thousand. ("Employee benefit expenses for the current year (previous year) - Directors' remuneration" / "Number of employees for the current year (previous year) - Number of directors who did not serve as employees concurrently").
(2) The average employee salary expense for the current year was NT$779 thousand; the average employee salary expense for the previous year was NT$710 thousand. (Total payroll expenses for the current year (previous year) / "Number of employees for the current year (previous year) - Number of directors who are not employees concurrently").
(3) The average change in employee salary expense adjustment was $9.72\%$ . ("Average employee salaries and wages for the current year - Average employee salaries and wages for the previous year"/Average employee salaries and wages for the previous year).
The remuneration policies of the Company's directors, managers and employees are described as follows:

(1) Director compensation is paid as attendance fees for each board meeting attended, as resolved by the Board of Directors. Independent directors receive fixed monthly compensation, and director remuneration is distributed according to the company's Articles of Incorporation, with no other variable compensation provided. Director compensation fully considers the Company's operational objectives, financial situation, and director responsibilities, and is linked to operating performance and profitability. It is reviewed by the Compensation Committee before being submitted to the Board of Directors for resolution.
(2) The compensation for managers and employees is divided into fixed salary and variable salary. Fixed salary is handled in accordance with the Company's "Management Guidelines for Directors and Managers' Salary and Remuneration," and is determined based on job responsibilities and professional abilities of their positions. Variable salary includes year-end bonuses, performance bonuses, and employee compensation, which are given based on the company's operating conditions and work performance.
(3) The Company provides year-end bonuses, performance bonuses, and allocates employee compensation based on a proportion of annual profits according to operational performance. The allocated amount is linked to operating performance and profitability, and is reviewed by the Compensation Committee before being submitted to the Board of Directors for resolution.

AI assistant

PSS Audit Report / Information 2025

52658_rns_2026-05-19_81512e0a-7449-4df8-921a-a22ad0791f63.pdf

Audit Opinions

Basis for the Audit Opinion

Key Audit Matters

Recognition of Parking Revenue from Equity Method Investments in Subsidiaries

Responsibilities of Management and Governing Units for Financial Reports

Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statements

B. Financial Assets Measured at Amortized Cost

3. Current and Deferred Tax

V. Significant accounting judgments and major sources of estimation uncertainty

Inventory impairment

XII. Lease agreement

(I) Right-of-use assets

(VI) Remuneration to employees and directors/supervisors

(IV) Authorization of income tax

XXI. Earnings per share

Net income for the year

Number of shares Unit: Thousand shares

Changes in liabilities from financing activities

XXIII. Capital risk management

(2) Interest rate risk

Sensitivity analysis

2. Credit risk

3. Liquidity risk

XXVIII. Additional disclosures

§ Table of Contents of Significant Accounting Items

AI assistant

PSS — Audit Report / Information 2025

52658_rns_2026-05-19_81512e0a-7449-4df8-921a-a22ad0791f63.pdf

Audit Opinions

Basis for the Audit Opinion

Key Audit Matters

Recognition of Parking Revenue from Equity Method Investments in Subsidiaries

Responsibilities of Management and Governing Units for Financial Reports

Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statements

B. Financial Assets Measured at Amortized Cost

3. Current and Deferred Tax

V. Significant accounting judgments and major sources of estimation uncertainty

Inventory impairment

XII. Lease agreement

(I) Right-of-use assets

(VI) Remuneration to employees and directors/supervisors

(IV) Authorization of income tax

XXI. Earnings per share

Net income for the year

Number of shares Unit: Thousand shares

Changes in liabilities from financing activities

XXIII. Capital risk management

(2) Interest rate risk

Sensitivity analysis

2. Credit risk

3. Liquidity risk

XXVIII. Additional disclosures

§ Table of Contents of Significant Accounting Items

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PSS Audit Report / Information 2025