~1~

Ruentex Engineering & Construction Co., Ltd.
Parent Company Only Financial Statements and
Independent Auditors' Audit Report
2025 and 2024
(Stock Code: 2597)

Company Address: 10F., No. 308, Sec. 2, Bade Rd., Taipei City
Telephone: (02)8161-9999

Ruentex Engineering & Construction Co., Ltd.
Parent Company Only Financial Statements for 2025 and 2024 and Independent Auditors' Audit Report
Table of Contents

Item	Page No.
I. Cover page	1
II. Table of Contents	2 ~ 4
III. Independent Auditors' Review Report	5 ~ 10
IV. Parent Company Only Balance Sheet	11 ~ 12
V. Parent Company Only Statements of Comprehensive Income	13
VI. Parent Company Only Statement of Changes in Equity	14
VII. Parent Company Only Statement of Cash Flows	15 ~ 16
VIII. Notes to the Parent Company Only Financial Statements	17 ~ 74
(I) Organization and business	17
(II) Date and procedure for approval of financial statements	17
(III) Application of new standards, amendments, and interpretations	17 ~ 19
(IV) Summary of significant accounting policies	19 ~ 28
(V) Significant accounting judgments, estimations, assumptions, and sources of estimation uncertainty	28 ~ 29
(VI) Details of significant accounts	29 ~ 57
(VII) Related Party Transactions	57 ~ 63

~2~

~3~

Item	Page No.
(VIII) Pledged Assets	64
(IX) Significant contingent liabilities and unrecognized contract commitments	64
(X) Significant disaster loss	64
(XI) Significant events after the balance sheet date	65
(XII) Others	65 ~ 73
(XIII) Additional Disclosure	73
1. Information on significant transactions (including information on subsidiaries)	73
2. Information on investees	74
3. Information on investment in Mainland Chin	74
(XIV) Operating segment information	74
IX. Detailed Statement of Significant Accounting Items
Statement of cash and cash equivalents	Statement 1
Accounts Receivable Statement	Statement 2
Statement of Changes in Construction in Progress	Statement 3
Statement of prepayments	Statement 4
Statement of other current assets	Statement 5
Statement of Changes in Financial Assets at Fair Value Through Other Comprehensive Income Acquired - Non-current	Statement 6
Statement of Changes in Amortized Cost Financial Assets - Non-Current	Statement 7

Item	Page No.
Statement of Changes in Investments Accounted for Using Equity Method	Statement 8
Statement of Changes in Property, Plant, and Equipment	Statement 9
Statement of Changes in Right-of-use Assets	Statement 10
Statement of Notes Payable	Statement 11
Statement of Accounts Payable	Statement 12
Statement of Changes in Advances from Construction Contracts	Statement 13
Statement of other non-current liabilities	Statement 14
Operation Income Statement	Statement 15
Operation Cost Statement	Statement 16
Statement of Manufacturing Overhead	Statement 17
Statement of Construction Costs	Statement 18
Statement of Selling Expenses	Statement 19
Statement of General and Administrative Expenses	Statement 20
Statement of Research and Development Expenses	Statement 21
Summary statement of employee benefits, depreciation, and amortization expenses by function incurred during the period	Statement 22

~4~

Independent Auditors' Audit Report

(115)Cai-Shen-Bao-Zi No. 25004241

Ruentex Engineering & Construction Co., Ltd.:

Opinion

We have audited the parent company only balance sheets of Ruentex Engineering & Construction Co., Ltd. (the Company) as of December 31, 2025 and 2024, the parent company only comprehensive income statements, equity statements and cash flow statements for the periods from January 1 to December 31, 2025 and 2024, and the notes to the parent company only 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 parent company only financial position of the Company as of December 31, 2025 and 2024, and its parent company only financial performance and parent company only cash flows for the years then ended, in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and the Standards on Auditing of the Republic of China. 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. We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Accountants of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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 for the year ended December 31, 2025. These matters were addressed in the context of our audit of the parent company only financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matter for the Group’s parent company only financial statements for the year ended December 31, 2025 is stated as follows:

Recognition of Construction Contract Revenue – Assessment of Percentage of Completion

Description of the matter

For the year 2025, construction contract revenue of the Company amounted to NT$24,898,441 thousand, representing 99.88% of parent company only operating revenue. For the accounting policies related to revenue recognition, please refer to Note 4(26) to the parent company only financial statements. For significant accounting estimates and assumptions, please refer to Note 5(2) to the parent company only financial statements. For details of the relevant accounts, please refer to Note 6(22) to the parent company only financial statements.

Construction contract revenue of the Company is recognized using the percentage-of-completion method over the contract period, based on the stage of completion. The stage of completion is determined by referencing the percentage of costs incurred to date, as of the end of the reporting period, for each contract relative to the estimated total contract costs. The aforementioned estimated total contract costs are determined by the Company based on measurable units, such as the project owner’s architectural and structural drawings, along with prevailing market fluctuations, to estimate the various construction costs to be incurred, including subcontracting, materials, and labor.

As the estimated total contract cost affects the stage of completion and the recognition of construction contract revenue, and given the complexity of cost components and the significant estimation involved, which gives rise to a high degree of uncertainty, we consider the assessment of the stage of completion used in revenue recognition for construction contracts to be one of the most significant audit matters for the year.

Corresponding audit procedures

The audit procedures we performed in respect of the above key audit matter relating to the assessment of the stage of completion are summarized as follows:

Based on our understanding of the Company’s operations and industry nature, we have evaluated the internal operating procedures used to estimate total construction costs. This includes the procedures for determining various engineering costs (subcontracting, materials, and labor) based on the client’s structural drawings and unit measurements, as well as the consistency of the estimation methodologies applied.

~6~

We evaluated and tested management's internal control procedures for recognizing construction contract revenue based on the percentage-of-completion method. This included verifying supporting documentation for current-period contract variations and significant progress billings.
Furthermore, we conducted site visits and interviews for major ongoing projects at year-end to confirm that the stage of completion was appropriate.
We performed relevant substantive procedures on the detailed statement of construction profit and loss for the period, including testing the current-period cost figures against appropriate evidence; tracing additional and reduced construction amounts to supporting documentation; and recalculating the construction contract revenue recognized based on the stage of completion, which has been properly recognized in the accounts.

Accuracy of timing in recognition of construction costs

Description of the matter

Please refer to Note 4(26) to the parent company only financial statements for the accounting policies related to the recognition of construction costs.

At the end of the reporting period, the construction costs incurred for each project of the Company are estimated based on the progress of construction and inspection results. The process of recognizing such construction costs generally involves determining whether project personnel have performed acceptance and valuation procedures in accordance with actual construction outcomes. If such procedures are not properly executed, differences in the timing of construction cost recognition may arise, which could significantly impact the financial statements. Accordingly, we have identified the accuracy of the timing of construction cost recognition as one of the most significant matters in our audit for the current year.

Corresponding audit procedures

The audit procedures we performed in respect of the above key audit matter are summarized as follows:

We understood and tested management's recognition process for construction costs to ensure compliance with internal control procedures. This included verifying that engineering personnel conducted acceptance inspections based on construction results, which were then approved by authorized supervisors before being forwarded to the accounting department for recording.

~7~

We performed cut-off testing on construction costs incurred for a period around the end of the reporting period, including examining acceptance records, verifying the accuracy of project progress billings, and confirming that construction costs incurred were recorded in the appropriate period.

Responsibilities of management and those charged with governance for the parent company only financial statements

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 such internal control as management determines is necessary to enable the preparation of parent company only financial statements that are free from material misstatement, whether due to fraud or error.

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

Those charged with governance (including members of the Audit and Risk Committee) are responsible for overseeing the Company’s 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 auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these parent company only financial statements.

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

~8~

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

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

~9~

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements for the year ended December 31, 2025 and are therefore the key audit matters. We describe these matters in our auditors' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

PwC Taiwan

Huang, Chin-Lien

CPA

Chang, Shu-Chiung

Financial Supervisory Commission

Approval Certificate No.: Jin-Guan-Zheng-Shen-Zi No. No. 1100348083

Former Financial Supervisory Commission, Executive Yuan

Approval Certificate No.: Jin-Guan-Zheng-Shen-Zi No. No. 0990042602

March 13, 2026

Ruentex Engineering & Construction Co., Ltd.
Parent Company Only Balance Sheet
December 31, 2025 and 2024
Unit: NT$ thousands

	Assets	Notes	December 31, 2025		December 31, 2024
			Amount	%	Amount	%
Current Assets
1100	Cash and cash equivalents	6(1)	$ 1,214,681	7	$ 1,588,167	10
1140	Contract asset - current	6(22) and 7	6,093,191	34	4,840,230	31
1150	Net bills receivable	6(2)	188,416	1	6,445	-
1160	Bills receivable - related parties - net	6(2) and 7	431,428	2	125,665	1
1170	Net Accounts Receivable	6(2)	2,211,408	12	689,447	5
1180	Accounts receivable - related parties - net	6(2) and 7	465,405	3	352,392	2
1200	Other receivables		2,960	-	1,124	-
1210	Other Receivables - related party	7	11,459	-	10,435	-
130X	Inventories	6(3)	20,494	-	19,947	-
1410	Prepayments	6(4)	785,878	4	609,638	4
1470	Other Current Assets	6(1), 7 and 8	167,993	1	154,894	1
11XX	Total current assets		11,593,313	64	8,398,384	54
Non-current assets
1517	Financial assets at fair value through other comprehensive income - non-current	6(5) and 7	3,126,125	17	4,144,224	27
1535	Amortized cost financial Assets - non-Current	6(6)	500,000	3	500,000	3
1550	Investments accounted for using equity method	6(7)	1,087,818	6	1,097,355	7
1600	Property, plant, and equipment	6(8) and 7	760,164	4	385,143	2
1755	Right-of-use assets	6(9) and 7	915,247	5	959,669	6
1780	Intangible Assets	6(10)	36,701	-	33,592	-
1840	Deferred tax Assets	6(30)	96,297	1	92,878	1
1900	Other non-current Assets		16,808	-	13,411	-
15XX	Total non-current assets		6,539,160	36	7,226,272	46
1XXX	Total Assets		$ 18,132,473	100	$ 15,624,656	100

(Continued)

Ruentex Engineering & Construction Co., Ltd.
Parent Company Only Balance Sheet
December 31, 2025 and 2024
Unit: NT$ thousands

	Liabilities and Equity	Notes	December 31, 2025		December 31, 2024
			Amount	%	Amount	%
Current liabilities
2130	Contract liabilities - current	6(22) and 7	$ 2,289,431	13	$ 1,827,955	12
2150	Notes payable		838,675	5	847,927	5
2160	Notes payable - related party	7	98,477	1	9,515	-
2170	Accounts Payable		2,972,523	16	1,778,325	11
2180	Accounts payable - related party	7	382,053	2	31,789	-
2200	Other payables	6(13)	825,949	5	667,401	4
2230	Income tax liabilities of current period		435,674	2	414,846	3
2280	Lease liabilities - current	6(9) and 7	86,967	-	86,054	1
2399	Other current liabilities - other	6(15)	9,634	-	7,222	-
21XX	Total Current Liabilities		7,939,383	44	5,671,034	36
Non-current liabilities
2570	Deferred income tax liabilities	6(30)	13,939	-	13,939	-
2580	Lease liabilities - non-current	6(9) and 7	844,963	5	886,249	6
2600	Other non-Current liabilities	6(15)(16)
		(17)	267,897	1	248,360	2
25XX	Total Non-Current Liabilities		1,126,799	6	1,148,548	8
2XXX	Total Liabilities		9,066,182	50	6,819,582	44
Equity
	Capital	6(18)
3110	Share capital		3,107,160	17	2,589,300	17
	Capital surplus	6(19)
3200	Capital surplus		846,204	5	846,192	5
	Retained earnings	6(20)
3310	Legal reserve		1,212,656	7	933,290	6
3350	Undistributed earnings		3,340,460	18	2,795,684	18
	Other equities	6(21)
3400	Other equities		559,811	3	1,640,608	10
3XXX	Total Equity		9,066,291	50	8,805,074	56
	Significant contingent liabilities and unrecognized commitments	9
	Significant subsequent events	11
3X2X	Total Liabilities and Equity		$ 18,132,473	100	$ 15,624,656	100

The accompanying notes are an integral part of these parent company only financial statements and should be read in conjunction therewith.

Chairman:Lee, Chih-Hung
Manager:Mo, Wei-Han
Accounting Manager:Chao, Tsun-Kuo

Ruentex Engineering & Construction Co., Ltd.
Parent Company Only Statement of Comprehensive Income
December 31, 2025 and 2024

Unit: NT$ thousands
(Except earnings per share, which is in NT$)

Item	Notes	December 31, 2025		December 31, 2024
		Amount	%	Amount	%
4000	Operation income	6(22) and 7	$ 24,928,153	100	$ 19,802,556	100
5000	Operation cost	6(3)(10)(23)(28)
		(29) and 7	(20,370,448)	(82)	(15,964,552)	(80)
5900	Gross profit		4,557,705	18	3,838,004	20
5910	Unrealized sales profits	6(7)	(2,965)	-	-	-
5920	Realized sales profits	6(7)	1,107	-	1,107	-
5950	Gross profit, net		4,555,847	18	3,839,111	20
	Operating Expenses	6(10)(28)(29) and 7
6100	Selling expenses		(98,488)	-	(83,743)	(1)
6200	General & administrative expenses		(681,275)	(3)	(607,222)	(3)
6300	R&D expenses		(32,374)	-	(33,935)	-
6450	Expected credit impairment gains (losses)	12(2)
			(170)	-	61	-
6000	Total Operating Expenses		(812,307)	(3)	(724,839)	(4)
6900	Operating Profit		3,743,540	15	3,114,272	16
	Non-operating Income and Expenses
7100	Interest revenue	6(6)(24) and 7	34,316	-	36,177	-
7010	Other income	6(5)(25)	167,295	1	165,607	1
7020	Other gains and losses	6(26)	8,187	-	(378)	-
7050	Financial Costs	6(9)(27) and 7	(16,958)	-	(28,655)	-
7070	Share of income of subsidiaries, associates and joint ventures	6(7)
	accounted for using the equity method		160,877	-	115,886	-
7000	Total non-operating income and expenses		353,717	1	288,637	1
7900	Net profit before tax		4,097,257	16	3,402,909	17
7950	Income tax expense	6(30)	(757,142)	(3)	(628,677)	(3)
8200	Net income of current period		$ 3,340,115	13	$ 2,774,232	14
	Other comprehensive income (net) Items not to be reclassified into profit or loss
8311	Remeasurements of defined benefit plans	6(7)(17)	($ 5,421)	-	$ 24,207	-
8316	Unrealized profit or loss on equity investments at fair value through other comprehensive income	6(21)	(1,080,797)	(4)	474,095	3
8349	Income tax relating to non-reclassified items	6(30)	1,069	-	(4,777)	-
8310	Total of items not to be reclassified into profit or loss		(1,085,149)	(4)	493,525	3
8300	Net other comprehensive (loss) income for the period, net of tax		($ 1,085,149)	(4)	$ 493,525	3
8500	Total comprehensive income for the period		$ 2,254,966	9	$ 3,267,757	17
	Earnings per share	6(31)
9750	Basic earnings per share		$	10.75	$	8.93
9850	Diluted earnings per share		$	10.74	$	8.92

The accompanying notes are an integral part of these parent company only financial statements and should be read in conjunction therewith.

Chairman: Lee, Chih-Hung
Manager: Mo, Wei-Han
Accounting Manager: Chao, Tsun-Kuo

Ruentex Engineering & Construction Co., Ltd.
Parent Company only Statements of Changes in Equity
December 31, 2025 and 2024
Unit: NT$ thousands

	Notes	Share capital	Share premium	Capital surplus			Retained earnings		Unrealized financial assets at fair value through other comprehensive income acquired Income (Loss)	Total
				Difference between the equity price and the book value of acquisition or disposition of subsidiaries	Changes in the ownership interests of subsidiaries as recognized	Others	Legal reserve	Undistributed earnings
2024
Balance on January 1, 2024		$ 1,849,500	$ 520,455	$ 24,760	$ 234,133	$ 51	$ 742,207	$ 1,931,635	$ 1,166,513	$ 6,469,254
Net income of current period		-	-	-	-	-	-	2,774,232	-	2,774,232
Other comprehensive income	6(21)	-	-	-	-	-	-	19,430	474,095	493,525
Total comprehensive income for this period		-	-	-	-	-	-	2,793,662	474,095	3,267,757
Appropriation and distribution of the earnings for 2023		-	-	-	-	-	191,083	( 191,083 )	-	-
Legal reserve		-	-	-	-	-	-	( 998,730 )	-	( 998,730 )
Cash dividends		-	-	-	-	-	-	( 739,800 )	-	-
Share dividend	6(18)	739,800	-	-	-	-	-	-	-	-
Changes in ownership interests in subsidiaries	6(7)	-	-	-	66,793	-	-	-	-	66,793
Balance on December 31, 2024		$ 2,589,300	$ 520,455	$ 24,760	$ 300,926	$ 51	$ 933,290	$ 2,795,684	$ 1,640,608	$ 8,805,074
2025
Balance on January 1, 2025		$ 2,589,300	$ 520,455	$ 24,760	$ 300,926	$ 51	$ 933,290	$ 2,795,684	$ 1,640,608	$ 8,805,074
Net income of current period		-	-	-	-	-	-	3,340,115	-	3,340,115
Other comprehensive income	6(21)	-	-	-	-	-	-	( 4,352 )	( 1,080,797 )	( 1,085,149 )
Total comprehensive income for this period		-	-	-	-	-	-	3,335,763	( 1,080,797 )	2,254,966
Appropriation and distribution of the earnings for 2024		-	-	-	-	-	279,366	( 279,366 )	-	-
Legal reserve		-	-	-	-	-	-	( 1,993,761 )	-	( 1,993,761 )
Cash dividends		-	-	-	-	-	-	( 517,860 )	-	-
Share dividend	6(18)	517,860	-	-	-	-	-	-	-	12
Exercise the right of recourse		-	-	-	-	12	-	-	-	12
Balance on December 31, 2025		$ 3,107,160	$ 520,455	$ 24,760	$ 300,926	$ 63	$ 1,212,656	$ 3,340,460	$ 559,811	$ 9,066,291

The accompanying notes are an integral part of these parent company only financial statements and should be read in conjunction therewith.

Chairman: Lee, Chih-Hung
Manager: Mo, Wei-Han
Accounting Manager: Chao, Tsun-Kuo

~15~

Ruentex Engineering & Construction Co., Ltd.
Parent Company Only Statements of Cash Flows
December 31, 2025 and 2024

Unit: NT$ thousands

	Notes	2025	2024
Cash flows from operating activities
Profit before Income Tax current period		$ 4,097,257	$ 3,402,909
Adjustments
Profit and loss items that do not affect cash flow
Realized sales profits	6(7)	( 1,107 )	( 1,107 )
Unrealized sales profits	6(7)	2,965	-
Expected credit impairment losses (gains)	6(28) and 12(2)	170	( 61 )
Share of profit or loss of subsidiaries recognized under the equity method	6(7)	( 160,877 )	( 115,886 )
Loss (gain) on disposal of property, plant and equipment	6(26)	( 8,867 )	71
Depreciation expense	6(8)(9)	218,830	174,870
	(28)
Amortization	6(10)(28)	4,353	4,138
Interest revenue	6(24)	( 34,316 )	( 36,177 )
Dividend income	6(25)	( 138,421 )	( 142,307 )
Gain on reversal of overdue payables	6(25)	( 201 )	( 3,840 )
Reversal of warranty provision recognized as other income	6(15)	( 2,270 )	( 9,249 )
Other income	(25)	( 20,419 )	( 5,921 )
Gains on lease modifications	6(26)	( 5 )	-
Interest Cost	6(27)	16,958	28,655
Changes in assets/liabilities relating to operating activities
Net changes in assets relating to operating activities
Contractual assets - Current		( 1,252,961 )	( 297,500 )
Notes receivable		( 181,971 )	828,770
Notes Receivable – related party		( 305,763 )	( 71,716 )
Accounts receivable		( 1,522,131 )	809,705
Accounts receivable - related party		( 113,013 )	178,048
Other receivables		( 1,928 )	( 676 )
Other receivables - related Party		( 1,024 )	( 396 )
Inventories		( 547 )	1,554
Prepayments		( 176,240 )	( 263,064 )
Other Current Assets		( 1,105 )	3,369
Net change in liabilities related to operating activities
Contract liabilities - current		461,476	( 325,765 )
Notes payable		( 9,252 )	168,955
Notes Payable – related Party		88,962	( 1,157 )
Accounts Payable		1,210,623	( 297,814 )
Accounts Payable – related Party		350,264	5,696
Other payables		162,743	50,070
Other non-Current liabilities		11,847	29,319
Other Current liabilities		2,412	428
Cash flow in from operating		2,696,442	4,113,921
Interest received		34,408	36,714
Dividends received		244,203	205,188
Interest paid		( 16,958 )	( 29,359 )
Income tax paid		( 738,664 )	( 647,776 )
Cash inflow from operating activities		2,219,431	3,678,688

(Continued)

Ruentex Engineering & Construction Co., Ltd.
Parent Company Only Statements of Cash Flows
December 31, 2025 and 2024

Unit: NT$ thousands

	Notes	2025	2024
Cash flows from investing activities
Decrease (increase) in other financial assets-current		($ 3,078)	$ 389,115
Financial assets at fair value through other comprehensive income acquired – non-current	6(5)	-	( 1,967 )
Real estate, plant and equipment acquired	6(8)	( 342,394 )	( 81,975 )
Proceeds from disposal of property, plant and equipment		8,893	-
Acquisition of intangible assets	6(10)	( 7,427 )	( 3,819 )
Increase in prepayments for equipment		( 151,352 )	( 27,710 )
Decrease (increase) in refundable deposits		( 8,794 )	3,816
Net cash inflow (outflow) from investing activities		( 504,152 )	277,460
Cash flows from financing activities
Decrease in short-term bills payable	6(33)	-	( 100,000 )
Repayments of long-term borrowings	6(33)	-	( 1,800,000 )
Principal elements of lease payments	6(33)	( 99,631 )	( 88,553 )
Increase in guarantee deposits	6(33)	4,615	14,695
Cash dividends paid	6(20)	( 1,993,761 )	( 998,730 )
Exercise the right of recourse		12	-
Cash used in financing activities		( 2,088,765 )	( 2,972,588 )
Increase (decrease) of cash and cash equivalents – current period		( 373,486 )	983,560
Cash and cash equivalents, beginning of period		1,588,167	604,607
Cash and cash equivalents, end of period		$ 1,214,681	$ 1,588,167

The accompanying notes are an integral part of these parent company only financial statements and should be read in conjunction therewith.

Chairman: Lee, Chih-Hung
Manager: Mo, Wei-Han
Accounting Manager: Chao, Tsun-Kuo

Ruentex Engineering & Construction Co., Ltd.
Notes to the parent company only financial statements
December 31, 2025 and 2024
Unit: NT$ thousands
(Except as Otherwise Indicated)

I. History and Organization

Ruentex Engineering & Construction Co., Ltd. (hereinafter referred to as “the Company”) was formerly known as the PING HUEI CONSTRUCTION INC. established in November 1975. In April 2006, Ruen-An Mechanical & Electrical Engineering, Co., Ltd. and Ruentex Engineering & Construction Co., Ltd. merged. The Company is the surviving company and in December of the same year, the name was changed to Ruentex Engineering & Construction Co., Ltd.
After undergoing several capital increases, as of December 31, 2025, the Company’s paid-in capital was NT$3,107,160, with a face value per share of NT$10. There are a total of 310,716,000 shares, all of which are issued as common stock, and Ruentex Development Co., Ltd. owns 39.14% of the Company’s equity.
The main businesses of the Company are: (1) Contracting for construction and civil engineering; (2) Electrical and mechanical engineering, water supply engineering, and refrigeration and air-conditioning engineering services; (3) Manufacture and sale of beams, columns, floor slabs, exterior walls, and building structural components; (4) Planning, design, and consultancy for precast and civil engineering; and (5) Distribution and import-export trading of all the preceding materials and equipment.
The Company has been listed for trading on the Taipei Stock Exchange (TWSE) since March 26, 2010.

II. Date and procedure for approval of financial statements

The parent company only financial statements were authorized for issuance by the Company’s Board of Directors on March 13, 2026.

III. Application of New Standards, Amendments and Interpretations

(I) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRSs”) as endorsed and issued by the Financial Supervisory Commission (“FSC”)

New standards, interpretations and amendments endorsed and issued by FSC effective from 2025 are as follows:

New and revised standards, amendments to standards and interpretations	Effective date published by the International Accounting Standards Board
Amendments to IAS No. 21 "Lack of Convertibility"	January 1, 2025

The above standards and interpretations have no significant impact to the Company’s financial condition and operating result based on the Company’s assessment.

~17~

(II) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRSs”) as endorsed by FSC

New standards, interpretations and amendments endorsed by FSC effective from 2026 are as follows:

New and revised standards, amendments to standards and interpretations	Effective date published by the International Accounting Standards Board
Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments”	January 1, 2026
Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”	January 1, 2026
IFRS 17 “Insurance Contracts”	January 1, 2023
Amendment to IFRS 17 “Insurance Contracts”	January 1, 2023
Amendments to IFRS 17 “Initial Application of IFRS 17 and IFRS 9—Comparative Information”	January 1, 2023
Annual Improvements to IFRS Accounting Standards—Volume 11	January 1, 2026

Except for the following, the above standards and interpretations have no significant impact on the Company’s financial condition and operating result based on the Company’s assessment:

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

It is updated that the fair values of equity instruments designated as at fair value through other comprehensive income through an irrevocable election should be disclosed on a per-category basis without a need to disclose the fair value per instrument. In addition, the amount of fair value gain or loss recognized in other comprehensive income during the reporting period should be disclosed and separately presented in the amount of fair value gain or loss related to the investments that were derecognized during the reporting period, the amount of fair value gain and loss related to the investments still held at the end of the reporting period; and cumulative gains and losses from investments derecognized during the reporting period and transferred to equity during the reporting period.

(III) IFRSs issued by IASB but not yet endorsed by the FSC

New standards, interpretations and amendments issued by IASB but not yet included in the IFRSs as endorsed by the FSC are as follows:

New and revised standards, amendments to standards and interpretations	Effective date published by the International Accounting Standards Board
Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture”	To be determined by the International Accounting Standards Board (IASB)
IFRS 18 "Presentation and Disclosure in of Financial Statements"	January 1, 2027 (Note)

IFRS 19 “Disclosure Initiative—Subsidiaries without Public January 1, 2027
Accountability: Disclosures”
Amendments to IAS 21 “Translation into a Hyperinflationary January 1, 2027
Currency”

Note: In a press release dated September 25, 2025, the FSC announced that publicly listed companies will be required to adopt IFRS 18 (hereinafter referred to as “IFRS 18”) starting in 2028. Furthermore, companies may elect to apply IFRS 18 early upon approval from the FSC.

Except for the following, the above standards and interpretations have no significant impact on the Company’s financial condition and operating result based on the Company’s assessment:

IFRS 18 "Presentation and Disclosure in of Financial Statements"

IFRS 18 "Presentation and Disclosure in of Financial Statements" replaces IAS 1, updates the structure of statements of comprehensive income, adds the disclosure of management performance measures, and improves the principles for aggregation and disaggregation used in the main financial statements and notes.

IV. Summary of significant accounting policies

The main accounting policies used in the preparation of the parent company only financial statements are as follows. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(I) Compliance statement

These parent company only financial statements have been prepared in accordance with the Rules Governing the Preparation of Financial Statements by Securities Issuers.

(II) Basis of preparation

Except the following material items, these parent company only financial statements have been prepared under the historical cost convention:
(1) Financial assets at fair value through other comprehensive income.
(2) Defined benefit liabilities recognized based on the net amount of pension fund Assets less present value of defined benefit obligation.
The preparation of financial statements in conformity with International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations, as endorsed and issued in effect by the FSC (collectively referred to herein as the “IFRSs”), requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company’s accounting policies. Areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the parent company only financial statements, are disclosed in Note 5.

(III) Foreign currency translation

Items included in the financial statements of each entity within the Company are measured using the currency of the primary economic environment in which the entity operates (i.e. its functional currency). These parent company only financial statements are presented in New Taiwan dollars, which is the functional currency of the Company.

~19~

Foreign currency transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the transaction date or measurement date, and any exchange differences arising from the translation are recognized in profit or loss for the period.
The balance of foreign currency monetary assets and liabilities is evaluated and adjusted at the spot exchange rate on the balance sheet date, and any resulting exchange differences are recognized in current profit or loss.
If the balance of foreign currency non-monetary assets and liabilities is measured at fair value through profit or loss, it is evaluated and adjusted using the spot exchange rate on the balance sheet date, with exchange differences arising from the adjustment recognized in current profit or loss. If measured at fair value through other comprehensive income, it is evaluated and adjusted at the spot exchange rate on the balance sheet date, with exchange differences arising from the adjustment recognized in other comprehensive income. If not measured at fair value, it is measured at the historical exchange rate on the initial transaction date.
All other exchange gains and losses are presented under “Other gains and losses” in the statement of profit or loss according to their nature.

(IV) Classification criteria for current and non-current assets and liabilities

Assets that meet one of the following conditions are classified as current assets:
(1) Assets expected to be realized in the ordinary course of business, or intended for sale or consumption.
(2) Those held primarily for trading purposes.
(3) Those expected to be realized within 12 months after the balance sheet date.
(4) Cash or cash equivalents, except those restricted from exchange or use in settlement of liabilities for at least twelve months after the balance sheet date.

The Company classifies all assets that do not meet the above conditions as non-current.

Liabilities that meet one of the following conditions are classified as current liabilities:
(1) Those expected to be settled within the normal business cycle.
(2) Those held primarily for trading purposes.
(3) Those due for settlement within 12 months after the balance sheet date.
(4) Those for which the Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting period.

The Company classifies all liabilities that do not meet the above conditions as non-current.

As the operating cycle of construction contracts is typically longer than one year, assets and liabilities related to operations and long-term construction contracts are classified as current or non-current based on the operating cycle.

(V) Cash equivalents

Cash equivalents include short-term, highly liquid investments that are readily convertible to known amounts of cash and which carry minimal risk of changes in value. Time deposits that meet the aforementioned definition and are held for the purpose of satisfying short-term cash commitments related to operations are classified as cash equivalents.

~20~

(VI) Financial assets at fair value through other comprehensive income

These refer to investments in equity instruments that are not held for trading and for which an irrevocable election is made at initial recognition to present changes in fair value in other comprehensive income.
For financial assets at fair value through other comprehensive income that meet regular way purchase or sale criteria, the Company adopts trade date accounting.
The Company measures the financial instrument at fair value plus transaction costs at initial recognition and subsequently at fair value.

Changes in the fair value of equity instruments are recognized in other comprehensive income. Upon derecognition, the cumulative gains or losses previously recognized in other comprehensive income shall not be reclassified to profit or loss and are instead transferred to retained earnings. When the right to receive dividends is established, it is probable that the economic benefits associated with the dividends will flow to the Company, and the amount of dividends can be measured reliably, the Company recognizes dividend income in profit or loss.

(VII) Financial assets at amortized cost

These refer to financial assets that meet both of the following conditions:
(1) The financial asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows.
(2) 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.
The Company adopts trade date accounting for financial assets measured at amortized cost that are recognized under regular way transactions.
The Company measures such financial assets at fair value plus transaction costs upon initial recognition. Subsequently, interest income is recognized over the outstanding period using the effective interest method under amortization, and impairment losses are recognized. Upon derecognition, any resulting gain or loss is recognized in profit or loss.

(VIII) Notes and accounts receivable:

These refer to accounts and notes representing the unconditional right to collect consideration received for the transfer of goods or services as stipulated in the contract.
For short-term accounts receivable and notes that do not bear interest, as the discount effect is immaterial, the Company measures them at the original invoice amount.

(IX) Impairment of financial assets

At each balance sheet date, the Company assesses financial assets measured at amortized cost by considering all reasonable and supportable information (including forward-looking information). For those for which credit risk has not increased significantly since initial recognition, the loss allowance is measured at an amount equal to the 12-month expected credit losses. For financial assets for which credit risk has increased significantly since initial recognition, the loss allowance is measured at an amount equal to the lifetime expected credit losses. For accounts receivable or contract assets that do not contain a significant financing component, the loss allowance is measured at an amount equal to the lifetime expected credit losses.

~21~

(X) Derecognition of financial assets

The Company derecognizes a financial asset when one of the following conditions is met:

The contractual rights to receive the cash flows from the financial asset expire.
The contractual rights to receive the cash flows from the financial asset are transferred, and substantially all the risks and rewards of ownership have been transferred.
The contractual rights to receive the cash flows from the financial asset are transferred, and control over the financial asset is not retained.

(XI) Inventories

Inventories are measured at the lower of cost and net realizable value, with cost determined using the weighted average method. The cost of finished goods and work in progress comprises raw materials, direct labor, other direct costs, and manufacturing overheads related to production, but excludes borrowing costs. When comparing cost and net realizable value, the item-by-item approach is applied. Net realizable value refers to the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

(XII) Investments accounted for using equity method/subsidiaries

Subsidiaries are entities (including structured entities) controlled by the Company. The Company controls an entity when it is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.
Unrealized gains and losses arising from transactions between the Company and its subsidiaries have been eliminated. Necessary changes have been made to the accounting policies of the subsidiaries to align them with the Company's policies.
The Company recognizes its share of a subsidiary's post-acquisition profit or loss in current profit or loss, and its share of post-acquisition other comprehensive income in other comprehensive income. If the Company's share of losses recognized in a subsidiary equals or exceeds its equity in the subsidiary, the Company continues to recognize losses in proportion to its shareholding.
Changes in ownership interests in subsidiaries that do not result in a loss of control (transactions with non-controlling interests) are treated as equity transactions; that is, they are treated as transactions with owners. The difference between the adjustment amount of non-controlling interests and the fair value of the consideration paid or received is recognized directly in equity.
In accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, the current period profit or loss and other comprehensive income in the parent company only financial statements shall be the same as the amounts attributable to owners of the parent in the consolidated financial statements. The equity in the parent company only financial statements shall also be the same as the equity attributable to owners of the parent in the consolidated financial statements.

(XIII) Property, plant, and equipment

Property, plant and equipment are recorded at acquisition cost, and related interest incurred during the acquisition and construction period is capitalized.

~22~

Subsequent costs are included in the carrying amount of the asset or recognized as a separate asset only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part shall be derecognized. All other repair and maintenance costs are recognized in profit or loss as incurred.
Subsequent measurement of property, plant, and equipment adopts the cost model. Depreciation is recognized on a straight-line basis over the estimated useful lives. If the components of property, plant and equipment are significant, they are depreciated separately.
At the end of each financial year, the Company reviews the residual values, useful lives, and depreciation methods of its assets. If the expected residual values or useful lives differ from previous estimates, or if there is a significant change in the expected pattern of consumption of the future economic benefits embodied in the assets, such changes are accounted for prospectively as changes in accounting estimates in accordance with IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors.” The useful lives of various assets are as follows:

Buildings and structures	3–60 years
Machinery and equipment	2–18 years
Transportation equipment	3–7 years
Office equipment	2–6 years
Leased assets	5 years
Leasehold improvements	5–10 years
Miscellaneous equipment	2–20 years

(XIV) Lessee’s lease transactions – right-of-use assets / lease liabilities

Lease assets are recognized as right-of-use assets and lease liabilities at the date the leased asset is available for use by the Company. When a lease contract qualifies as a short-term lease or a lease of a low-value asset, lease payments are recognized as an expense on a straight-line basis over the lease term.
At the commencement date, the lease liability is recognized at the present value of the lease payments not yet paid, discounted using the Company’s incremental borrowing rate. Lease payments include fixed payments, less any lease incentives receivable. Subsequently, it is measured at amortized cost using the effective interest method, and interest expense is recognized over the lease term. When changes in the lease term or lease payments are not the result of a contract modification, the lease liability is remeasured, and the remeasurement amount is adjusted against the right-of-use asset.
Right-of-use assets are recognized at cost at the commencement date, and the cost includes the initial measurement of the lease liability. Subsequently, it is measured using the cost model, and depreciation is recognized over the shorter of the useful life of the right-of-use asset and the lease term. When the lease liability is remeasured, the right-of-use asset is adjusted by the amount of any remeasurement of the lease liability.

~23~

~24~

(XV) Intangible Assets

Patents

Royalties paid to acquire operating and professional technologies are recognized at cost and amortized on a straight-line basis over the estimated useful lives of 10–20 years.

Computer software

Computer software is recognized at acquisition cost and amortized over its estimated useful life of 3 to 5 years using the straight-line method.

(XVI) Impairment of non-financial assets

At each balance sheet date, the Company assesses whether there are any indications of impairment for its assets and estimates their recoverable amounts. When the recoverable amount is less than the carrying amount, an impairment loss is recognized. The recoverable amount is the higher of an asset’s fair value less costs of disposal and its value in use. When the circumstances that previously gave rise to an impairment loss no longer exist or have decreased, the impairment loss is reversed. However, the increased carrying amount of the asset resulting from the reversal shall not exceed the carrying amount that would have been determined net of depreciation or amortization had no impairment loss been recognized in prior years.

(XVII) Loans

Loans refer to long- and short-term loans and other short-term borrowings from banks. The Company measures financial liabilities at their fair value less transaction costs upon initial recognition. Subsequently, any difference between the proceeds net of transaction costs and the redemption value is recognized as interest expense in profit or loss over the term of circulation using the effective interest method.

(XVIII) Accounts payable and notes payable

Theses refer to debts incurred from the purchase of raw materials, goods, or services, and notes payable arising from both business and non-business activities.
For short-term accounts payables and notes that do not bear interest, as the discount effect is immaterial, the Company measures them at the original invoice amount.

(XIX) Derecognition of financial liabilities

The Company derecognizes financial liabilities when the obligations specified in the contract are discharged, canceled, or expire.

(XX) Financial guarantee contract

It refers to a contract whereby the Company is obligated to make a specific payment to cover the losses incurred by the holder if the specified debtor defaults on its debt obligations at maturity, as defined in the original or amended debt instrument. At initial recognition, the Company measures it at fair value on the transaction date, adjusted for transaction costs. Subsequently, it is measured at the higher of the best estimate of the expenditure required to settle the present obligation at the balance sheet date and the amount initially recognized less accumulated amortization.

(XXI) Provisions

Liability reserves (including warranty and decommissioning liabilities) are recognized when a present statutory or constructive obligation exists due to past events, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and the amount of the obligation can be reliably estimated. The liability reserve is measured at the best estimate of the current value of the expenditure required to settle the obligation as of the balance sheet date. The discount rate used reflects the current market assessment of the time value of money and the specific risks associated with the liability, stated before income tax. The amortization of the discount is recognized as an interest expense. No liability reserve may be recognized for future operating losses.

(XXII) Employee benefits

Short-term employee benefits

Short-term employee benefits are measured at the expected undiscounted amount to be paid and are recognized as expenses when the related services are rendered.

Pensions

(1) Defined contribution plan

For defined contribution plans, the amount of pension contributions to be made is recognized as pension cost for the period on an accrual basis. Prepaid contributions are recognized as assets to the extent that a cash refund or a reduction in future payments is available.

(2) Defined benefit plan

A. The net obligation under defined benefit plans is calculated by discounting the future benefits earned by employees from current or past services, and is measured as the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by actuaries using the projected unit credit method. The discount rate is determined by reference to the market yield at the balance sheet date on government bonds that have a currency and term consistent with those of the defined benefit plan.

B. Remeasurements arising from defined benefit plans are recognized in other comprehensive income in the period in which they occur and are presented in retained earnings.

Termination benefits

Termination benefits are provided in exchange for the termination of employment as a result of either the company's decision to terminate an employee's employment before the normal retirement date or an employee's decision to accept an offer of benefits in exchange for the termination of employment. The Company recognizes an expense at the earlier of when it can no longer withdraw the offer of termination benefits or when it recognizes the related restructuring costs. Benefits not expected to be fully settled within 12 months of the balance sheet date should be discounted.

Remuneration to employees

Employee remuneration is recognized as an expense and a liability when there is a legal or constructive obligation and the amount can be reasonably estimated. Subsequent

~25~

differences between the actual amount distributed and the amount originally estimated are accounted for as changes in accounting estimates. In addition, if employee remuneration is paid in stock, the calculation of the number of shares will be based on the closing price on the day prior to the board resolution.

(XXIII) Income tax

Income tax expense comprises current and deferred income taxes. Except for income taxes relating to items recognized in other comprehensive income or directly in equity, which are recognized in other comprehensive income or directly in equity, respectively, income taxes are recognized in profit or loss.
The Company calculates current income tax using the tax rates that have been enacted or substantively enacted as of the balance sheet date in the countries where it operates and generates taxable income. Management periodically evaluates the status of income tax filings in accordance with applicable tax laws and regulations, and, where appropriate, recognizes income tax liabilities based on the amounts expected to be paid to the tax authorities. Income tax on undistributed earnings levied in accordance with the Income Tax Act is recognized as income tax expense in the year following the year in which the earnings are generated, after the shareholders' meeting approves the earnings distribution, based on the actual distribution of earnings.
Deferred income tax is recognized using the balance sheet method based on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. Deferred tax liabilities arising from the initial recognition of goodwill are not recognized. Deferred tax is also not recognized for temporary differences arising from the initial recognition of an asset or liability in a transaction, other than a business combination, that at the time of the transaction affects neither accounting profit nor taxable profit (tax loss) and does not give rise to equal taxable and deductible temporary differences. If temporary differences arise from investments in subsidiaries, and the Company can control the timing of the reversal of such temporary differences, and it is highly probable that the temporary differences will not reverse in the foreseeable future, they are not recognized. Deferred income taxes are measured using the tax rates and tax laws that have been enacted or substantively enacted at the balance sheet date and that are expected to apply when the related deferred tax assets are realized or deferred tax liabilities are settled.
Deferred tax assets are recognized to the extent that it is probable that future taxable income will be available against which the temporary differences can be utilized, and are reassessed at each balance sheet date, including both unrecognized and recognized deferred tax assets.
Current income tax assets and current income tax liabilities are offset only when there is a legally enforceable right to offset the recognized amounts, and there is an intention to settle on a net basis or to realize the assets and settle the liabilities simultaneously. Deferred tax assets and deferred tax liabilities are offset only when there is a legally enforceable right to offset current income tax assets against current income tax liabilities, and the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on the same taxable entity or on different taxable entities that intend to settle on a net basis or to realize the assets and settle the liabilities simultaneously.

~26~

Tax incentives arising from research and development expenses are accounted for using the income tax credit method.

(XXIV) Capital

Common stock is classified as equity. Incremental costs directly attributable to the issuance of new shares or share options are recognized as a deduction from equity, net of tax.

(XXV) Dividend distribution

Dividends distributed to the Company’s shareholders are recognized in the financial statements when approved by the shareholders’ meeting. Cash dividends are recognized as a liability, while stock dividends are recognized as stock dividends to be distributed and are reclassified to common shares on the base date of the new share issuance.

(XXVI) Income

Construction contract revenue

The Company engages in construction contracts. As the performance of such contracts creates or enhances an asset that is controlled by the customer as it is created or enhanced, or does not create an asset with an alternative use for the Company, and the Company has an enforceable right to payment for performance completed to date, revenue is therefore recognized over time as the performance obligations are satisfied.
The Company adopts the percentage-of-completion method for construction contracts, recognizing revenue over the contract period based on the stage of completion, with contract costs recognized as expenses in the periods in which they are incurred. The percentage of completion is calculated based on the contract costs incurred for each contract as of the end of the reporting period, divided by the estimated total cost of that contract. When the total contract cost is likely to exceed the total contract revenue, the expected loss should be recognized as an expense immediately. When the outcome of a construction contract cannot be reasonably measured, but the Company expects to recover the costs incurred in satisfying the performance obligation, the Company recognizes revenue only to the extent of the contract costs incurred until such time as the outcome of the performance obligation can be reliably measured.
The Company revises its estimates of revenue, costs, and the stage of completion as circumstances change. Any increases or decreases in estimated revenue or costs resulting from changes in estimates are recognized in profit or loss in the period in which the circumstances giving rise to the revisions become known to management.
Contract terms that may result in changes to the total contract price, including performance bonuses, penalties, and claims, are accounted for as variable consideration and estimated using the method that better predicts the amount of consideration to which the Group will be entitled. Such variable consideration is recognized only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur.
The Company’s construction contracts include arrangements with customers under which a portion of the contract consideration is payable only upon acceptance of the work. Such retention receivables serve as a safeguard for the customer against the counterparty’s failure to properly perform part or all of its contractual obligations and, accordingly, do not give rise to a significant financing component.

~27~

The Company recognizes contract assets for the total amount due from customers for contract work, which represents the excess of costs incurred plus recognized profits (less recognized losses) over progress billings in construction contracts. If progress billings on construction contracts exceed the total of costs incurred plus recognized profits (less recognized losses), the excess is recognized as contract liabilities.

(XXVII) Government grants

Government grants are recognized at fair value when there is reasonable assurance that the entity will comply with the conditions attached to the grants and that the grants will be received. If the nature of a government grant is to compensate the Company for expenses incurred, the grant is recognized in profit or loss on a systematic basis in the periods in which the related expenses are recognized, and is presented as a deduction from “research and development expenses.”

V. Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty

In preparing these parent company only financial statements, management has exercised its judgment in determining the accounting policies to be applied, and has made accounting estimates and assumptions based on reasonable expectations of future events as of the balance sheet date. Significant accounting estimates and assumptions made may differ from actual results. Historical experience and other factors will be continuously evaluated and adjusted. Such estimates and assumptions carry a risk of resulting in material adjustments to the carrying amounts of assets and liabilities in the next financial year. Please refer to the following descriptions of significant accounting judgments and uncertainties in estimates and assumptions:

(I) Significant judgments in adopting accounting policies

None.

(II) Important accounting estimates and assumptions

Financial assets – fair value measurement of unlisted company stocks with no active market.

The Company’s investments in unlisted companies’ stocks without an active market are measured at fair value primarily based on estimates with reference to valuations of comparable companies, the companies’ technological development, market conditions, and other economic indicators. Any change in judgments and estimates may affect the measurement of their fair values. For information regarding the fair value of financial instruments, please refer to Note 12(3).

As of December 31, 2025, the carrying amount of the Company’s investments in unlisted companies’ stocks without an active market was $60,509 (presented under “Financial assets at fair value through other comprehensive income – non-current”).

Revenue recognition

Revenue from construction contracts is recognized over the contract period using the percentage-of-completion method based on the stage of completion of the contract, and contract costs are recognized as expenses in the period in which they are incurred. The stage of completion is determined by the percentage of costs incurred to date as of the end of the reporting period for each contract relative to the estimated total contract costs. The aforementioned estimated total contract costs are determined by the Company based on measurable units such as the project owner’s architectural and structural drawings, together

~28~

with prevailing market fluctuations, to estimate the various construction costs to be incurred, including subcontracting, materials, and labor costs. Description of the estimates of significant accounting items related to total contract costs affect the stage of completion and the recognition of revenue from construction contracts, and, given the complexity of total contract cost components, often involve significant uncertainty due to the high degree of estimation involved.

VI. Details of Significant Accounts

(I) Cash and cash equivalents

	December 31, 2025	December 31, 2024
Cash on hand and revolving funds	$ 4,140	$ 4,690
Checking deposits	372,427	201,711
Demand deposits	548,499	532,683
Time deposits	120,000	-
Cash equivalents - Bonds under repurchase agreements	169,615	849,083
	$ 1,214,681	$ 1,588,167

The Company transacts with a variety of financial institutions, all with high credit quality, to disperse credit risk; therefore, it expects that the probability of counterparty default is remote.
Restricted cash and cash equivalents due to business contracts, engineering contract guarantee deposits, warranties, and so on amounted to $123,197 and $120,119 as of December 31, 2025 and 2024, respectively. These are classified as other financial assets – current and presented under “Other current assets.” For details, please refer to Note 8.

(II) Notes and accounts receivable

	December 31, 2025	December 31, 2024
Notes receivable	$ 188,416	$ 6,445
Notes Receivable – related party	431,428	125,665
	$ 619,844	$ 132,110
Accounts receivable	$ 2,211,823	$ 689,692
Less: Allowance for loss	( 415)	( 245)
Subtotal	2,211,408	689,447
Accounts receivable - related party	465,405	352,392
	$ 2,676,813	$ 1,041,839

The aging analysis of accounts receivable (including related parties) and notes receivable (including related parties) is as follows:

	December 31, 2025		December 31, 2024
	Accounts receivable	Notes receivable	Accounts receivable	Notes receivable
Not overdue	$ 2,365,898	$ 619,844	$ 1,042,084	$ 132,110
Overdue
Within 30 days	110,238	-	-	-
31-60 days	201,092	-	-	-
	$ 2,677,228	$ 619,844	$ 1,042,084	$ 132,110

The aging analysis was based on past due date.

The balances of the receivables and notes receivable as of December 31, 2025 and 2024 were incurred by the clients' contracts; also as of January 1, 2023, the balances of the notes receivable (including related parties) and accounts receivables (including related parties) were NT$889,164 and NT$2,029,531, respectively.
The Company's maximum exposures to credit risk, before consideration of associated collateral held and other credit enhancements, were NT$619,844 and NT$132,110 for notes receivable (including related parties) as of December 31, 2025 and 2024, respectively; and NT$2,676,813 and NT$1,041,839 for accounts receivable (including related parties) as of December 31, 2025 and 2024, respectively.
For credit risk information related to accounts receivable and notes receivable, please refer to Note 12(2).

(III) Inventories

	Cost	December 31, 2025 Allowance for valuation losses		Carrying amount
Raw materials Supplies	$ 14,852	($	3,260)	$ 11,592
	8,902		-	8,902
	$ 23,754	($	3,260)	$ 20,494
	Cost	December 31, 2024 Allowance for valuation losses		Carrying amount
Raw materials Supplies	$ 17,222	($	2,079)	$ 15,143
	4,804		-	4,804
	$ 22,026	($	2,079)	$ 19,947

Construction costs recognized as expenses in the current period:

	2025	2024
Construction costs	$ 20,377,860	$ 15,965,290
Loss on market value decline of inventory	1,181	1,659
Revenue from sales of scraps	( 28,760)	( 23,328)
	$ 20,350,281	$ 15,943,621

(IV) Prepayments

	December 31, 2025	December 31, 2024
Prepayment for purchases	$ 705,309	$ 563,688
Overpaid sales tax	23,510	15,214
Prepaid rent	17,675	13,982
Other prepayments	39,384	16,754
	$ 785,878	$ 609,638

(V) Financial assets at fair value through other comprehensive income acquired - non-Current

Item	December 31, 2025	December 31, 2024
Equity Instrument
Shares of TWSE listed companies	$ 2,191,521	$ 2,191,521
Shares of the TPEx listed companies	57,379	57,379
Shares of non-TWSE/TPEx listed companies	286,324	286,324
	2,535,224	2,535,224
Adjustments for valuation
-Shares of TWSE listed companies	866,225	1,862,640
-Shares of the TPEx listed companies	(49,509)	(40,328)
-Shares of non-TWSE/TPEx listed companies	(225,815)	(213,312)
	590,901	1,609,000
	$ 3,126,125	$ 4,144,224

The Company elected to classify the TWSE listed securities investments for stable dividends as financial assets at fair value through other comprehensive income; such investments amounted to NT$3,057,746 and NT$4,054,161 as of December 31, 2025, and December 31, 2024, respectively.

The Company elected to classify the strategic investments of listed and unlisted shares as financial assets at fair value through other comprehensive income, amounting to NT$68,379 and NT$90,063 as of December 31, 2025 and 2024, respectively.
TPEx listed company, OBI Pharma, Inc., increased its capital in cash in November 2024, and the Group subscribed for 30,730 shares in the amount of NT$1,967.
TPEx listed company, OBI Pharma, Inc., resolved at its board meeting in September 2025 to carry out a capital reduction to offset losses, with a capital reduction ratio of 50%. November 24, 2025 was the capital reduction record date, and the record date for the issuance of new shares following the capital reduction is February 2, 2026.
The maximum exposure to credit risk for the Group’s financial assets at fair value, before consideration of associated collateral held and other credit enhancements, was NT$3,126,125 and NT$4,144,224 as of December 31, 2025 and 2024, respectively.
Detail of the financial Assets at fair value through other comprehensive income recognized under the comprehensive income is as follows:

Item	2025	2024
Changes in fair value recognized as other comprehensive income	($ 1,018,099)	$ 445,857
Dividend income recognized in profit or loss	$ 138,421	$ 142,307

For information on the price risk of financial assets at fair value through other comprehensive income, please refer to Note 12(2).

(VI) Financial Assets at amortized cost- non-Current

Item	December 31, 2025	December 31, 2024
Subordinated corporate bonds	$ 500,000	$ 500,000

Detail of the financial Assets at amortized cost recognized under the profit (loss) is as follows:

Interest revenue	2025	2024
	$ 17,500	$ 17,500

The Company’s maximum exposure to credit risk for financial assets measured at amortized costs, before consideration of associated collateral held and other credit enhancements was NT$500,000 as of December 31, 2025 and 2024.
For information on the credit risk of financial assets at amortized cost, please refer to Note 12(2).

~32~

(VII) Investments accounted for using equity method

	2025		2024
January 1	$	1,097,355	$ 947,892
Share of profit (loss) of investments accounted for using the equity method		160,877	115,886
Distribution of earnings from investments (accounted for using the equity method)	(	105,782)	( 62,881)
Changes in capital surplus		-	66,793
Changes in other equity (Note 6(21))	(	62,698)	28,238
Actuarial gains (losses) on pensions – subsidiaries	(	76)	320
Realized gain on sales between affiliated companies		1,107	1,107
Unrealized gain on sales between affiliated companies	(	2,965)	-
December 31	$	1,087,818	$ 1,097,355

Details of investments are as follows:

	December 31, 2025	December 31, 2024
Subsidiaries
Ruentex Materials Co., Ltd. (Ruentex Materials)	$ 915,871	$ 928,888
Ruentex Interior Design Inc. (Ruentex Interior Design)	166,953	162,213
Ruen Yang Construction Co., Ltd. (Ruen Yang)	4,994	6,254
	$ 1,087,818	$ 1,097,355

The share of profit (loss) of subsidiaries accounted for using the equity method is as follows:

	2025	2024
Subsidiaries
Ruentex Materials	$ 108,829	$ 73,422
Ruentex	53,308	42,266
Ruen Yang	( 1,260)	198
	$ 160,877	$ 115,886

In order to cooperate with the public underwriting before the initial listing on the Taipei Exchange by Ruentex Interior Design, a third-tier subsidiary of the Company, the Board of Directors approved, by resolution on March 26, 2024, a cash capital increase of 1,500 thousand shares with a face value of NT$10 per share, all of which are ordinary shares. May 17, 2024, was the record date for the capital increase, and the registration of the change was completed on June 19, 2024. Neither the Company nor its subsidiary, Ruentex Materials, has subscribed to shares in the capital increase of Ruentex Interior Design in proportion to their shareholdings. As a result, the direct shareholding in Ruentex Interior Design by the Company and Ruentex Materials has decreased from 20.34% and 35.19% to 18.30% and 31.66%, respectively. The Company's combined direct and indirect shareholding in Ruentex Interior Design decreased from 34.12% to 30.70% and recognized NT$66,793 in capital surplus – changes in the ownership interests of subsidiaries. For related information, please refer to Note 6(32) to the Company's consolidated financial statements for the year ended December 31, 2025.
For information on the Company's subsidiaries, please refer to Note 4(3) to the Company's consolidated financial statements for the year ended December 31, 2025.

~34~

(VIII) Property, plant, and equipment

	Buildings and structures	Machinery and equipment	Transportation equipment	Office equipment	2025 Leased assets	Leasehold improvements	Miscellaneous equipment	Construction in progress	Total
January 1
Cost	$ 265,534	$ 500,449	$ 30,760	$ 108,686	$ 4,239	$ 73,604	$ 235,842	$ 5,844	$ 1,224,958
Accumulated depreciation	( 163,058)	( 414,804)	( 22,308)	( 76,193)	( 4,239)	( 22,019)	( 137,194)	-	( 839,815)
	$ 102,476	$ 85,645	$ 8,452	$ 32,493	$ -	$ 51,585	$ 98,648	$ 5,844	$ 385,143
January 1	$ 102,476	$ 85,645	$ 8,452	$ 32,493	$ -	$ 51,585	$ 98,648	$ 5,844	$ 385,143
Addition	470	169,257	2,694	12,659	-	15,770	91,434	50,110	342,394
Transfer (Note)	-	75,917	-	-	-	4,393	123,442	( 55,954)	147,798
Costs of disposal of assets	-	( 6,356)	( 6,256)	( 3,060)	( 3,110)	-	( 25,223)	-	( 44,005)
Accumulated depreciation balance on disposal date	-	6,356	6,256	3,034	3,110	-	25,223	-	43,979
Depreciation expense	( 6,528)	( 43,835)	( 2,881)	( 13,175)	-	( 7,670)	( 41,056)	-	( 115,145)
December 31	$ 96,418	$ 286,984	$ 8,265	$ 31,951	$ -	$ 64,078	$ 272,468	$ -	$ 760,164
December 31
Cost	$ 266,004	$ 739,267	$ 27,198	$ 118,285	$ 1,129	$ 93,767	$ 425,495	$ -	$ 1,671,145
Accumulated depreciation	( 169,586)	( 452,283)	( 18,933)	( 86,334)	( 1,129)	( 29,689)	( 153,027)	-	( 910,981)
	$ 96,418	$ 286,984	$ 8,265	$ 31,951	$ -	$ 64,078	$ 272,468	$ -	$ 760,164

Note: The balance of the transfer amount is the transfer from prepayments for business facilities.

	Buildings and structures	Machinery and equipment	Transportation equipment	Office equipment	Leased assets	Leasehold improvements	Miscellaneous construction in equipment	Progress	Total
January 1
Cost	$ 265,534	$ 478,105	$ 27,765	$ 97,025	$ 4,239	$ 68,872	$ 185,335	$ -	$ 1,126,875
Accumulated depreciation	(156,459)	(390,995)	(19,838)	(68,395)	(4,239)	(15,745)	(110,547)	-	(766,218)
	$ 109,075	$ 87,110	$ 7,927	$ 28,630	$ -	$ 53,127	$ 74,788	$ -	$ 360,657
January 1	$ 109,075	$ 87,110	$ 7,927	$ 28,630	$ -	$ 53,127	$ 74,788	$ -	$ 360,657
Addition	-	19,814	2,945	16,551	-	4,732	32,089	5,844	81,975
Transfer (Note)	-	4,604	50	-	-	-	18,440	-	23,094
Costs of disposal of assets	-	(2,074)	-	(4,890)	-	-	(22)	-	(6,986)
Accumulated depreciation balance on disposal date	-	2,027	-	4,866	-	-	22	-	6,915
Depreciation expense	(6,599)	(25,836)	(2,470)	(12,664)	-	(6,274)	(26,669)	-	(80,512)
December 31	$ 102,476	$ 85,645	$ 8,452	$ 32,493	$ -	$ 51,585	$ 98,648	$ 5,844	$ 385,143
December 31
Cost	$ 265,534	$ 500,449	$ 30,760	$ 108,686	$ 4,239	$ 73,604	$ 235,842	$ 5,844	$ 1,224,958
Accumulated depreciation	(163,058)	(414,804)	(22,308)	(76,193)	(4,239)	(22,019)	(137,194)	-	(839,815)
	$ 102,476	$ 85,645	$ 8,452	$ 32,493	$ -	$ 51,585	$ 98,648	$ 5,844	$ 385,143

Note: The balance of the transfer amount is the transfer from prepayments for business facilities.
The Company's property, plant and equipment have not been pledged as collateral.

(IX) Lease transactions - lessees

The underlying assets of the Company to be leased include land used for industry, offices, employee dormitories, warehouses, parking, and company vehicles in the form of operating lease, and the lease period is from 2021 to 2040. The lease contracts are negotiated individually, with different terms and conditions. The leased assets are neither to be used as collaterals for loans, nor the rights to be transferred to others in the form of business transfer or merge, among other forms.
The lease terms for the Company’s rented site offices, employee dormitories, and warehouses do not exceed 12 months.
The information of the right-of-use assets are as the following:

	2025
	Land	Buildings	Transportation equipment	Total
January 1
Cost	$ 1,049,410	$ 148,425	$ 5,169	$ 1,203,004
Accumulated depreciation	( 132,633)	( 108,244)	( 2,458)	( 243,335)
	$ 916,777	$ 40,181	$ 2,711	$ 959,669
January 1	$ 916,777	$ 40,181	$ 2,711	$ 959,669
Addition-Newly added lease contracts	45,349	-	297	45,646
Lease contract modifications - costs	13,825	-	( 750)	13,075
Lease contract modifications - accumulated depreciation	-	-	542	542
Cost of derecognition	( 13,212)	-	-	( 13,212)
Accumulated depreciation on the de-booking date	13,212	-	-	13,212
Depreciation expense	( 71,732)	( 30,136)	( 1,817)	( 103,685)
December 31	$ 904,219	$ 10,045	$ 983	$ 915,247
December 31
Cost	$ 1,095,372	$ 148,425	$ 4,716	$ 1,248,513
Accumulated depreciation	( 191,153)	( 138,380)	( 3,733)	( 333,266)
	$ 904,219	$ 10,045	$ 983	$ 915,247

~38~

	2024
	Land	Buildings	Transportation equipment	Total
January 1
Cost	$ 924,991	$ 146,453	$ 4,706	$ 1,076,150
Accumulated depreciation	( 70,102)	( 78,108)	( 767)	( 148,977)
	$ 854,889	$ 68,345	$ 3,939	$ 927,173
January 1	$ 854,889	$ 68,345	$ 3,939	$ 927,173
Addition-Newly added lease contracts	59,326	1,972	463	61,761
Lease contract modifications - costs	65,093	-	-	65,093
Depreciation expense	( 62,531)	( 30,136)	( 1,691)	( 94,358)
December 31	$ 916,777	$ 40,181	$ 2,711	$ 959,669
December 31
Cost	$ 1,049,410	$ 148,425	$ 5,169	$ 1,203,004
Accumulated depreciation	( 132,633)	( 108,244)	( 2,458)	( 243,335)
	$ 916,777	$ 40,181	$ 2,711	$ 959,669

Lease liabilities related to lease contracts are as the following:

	December 31, 2025	December 31, 2024
Total amount of lease liabilities	$ 931,930	$ 972,303
Less: Current portion (listed as lease liabilities - current)	( 86,967)	( 86,054)
	$ 844,963	$ 886,249

Information of income items related to lease contracts are as the following:

	2025	2024
Items affects the income of the current period
Interest expenses of lease liabilities	$ 15,112	$ 14,691
Expenses of short-term lease contracts	141,765	120,211
Gains on lease modifications	( 5)	-
	$ 156,872	$ 134,902

In July 2025 and 2024, the Company adjusted the right-of-use assets – land and lease liabilities of NT$13,825 and NT$65,093 according to the consumer price index.
The Company’s total lease-related cash outflows for the nine months ended December 10, 2025 and 2024, were NT$256,508 and NT$223,455, respectively. These amounts include short-term lease payments of NT$141,765 and NT$120,211, interest expenses on lease liabilities of NT$15,112 and NT$14,691, and repayments of lease principal of NT$99,631 and NT$88,553, respectively.
The Company rented lands from related parties. Please refer to Note 7(2) for related explanations.

(X) Intangible Assets

	2025
	Patents	Computer software		Total
January 1
Cost	$ 61,862	$ 48,776	$ 110,638
Accumulated amortization	( 30,823)	( 46,223)	( 77,046)
	$ 31,039	$ 2,553	$ 33,592
January 1	$ 31,039	$ 2,553	$ 33,592
Addition	3,186	4,241	7,427
Transfer (Note)	-	35	35
Costs of disposal of assets	-	( 4,542)	( 4,542)
Balance of accumulated amortization on the derecognition date	-	4,542	4,542
Amortization	( 2,402)	( 1,951)	( 4,353)
December 31	$ 31,823	$ 4,878	$ 36,701
December 31
Cost	$ 65,048	$ 48,510	$ 113,558
Accumulated amortization	( 33,225)	( 43,632)	( 76,857)
	$ 31,823	$ 4,878	$ 36,701

Note: The balance of the transfer amount is the transfer from prepayments for business facilities.

~40~

	Patents	2024 Computer software	Total
January 1
Cost	$ 58,429	$ 52,395	$ 110,824
Accumulated amortization	( 28,498)	( 49,065)	( 77,563)
	$ 29,931	$ 3,330	$ 33,261
January 1	$ 29,931	$ 3,330	$ 33,261
Addition	3,433	386	3,819
Transfer (Note)	-	650	650
Costs of disposal of assets	-	( 4,655)	( 4,655)
Balance of accumulated amortization on the derecognition date	-	4,655	4,655
Amortization	( 2,325)	( 1,813)	( 4,138)
December 31	$ 31,039	$ 2,553	$ 33,592
December 31
Cost	$ 61,862	$ 48,776	$ 110,638
Accumulated amortization	( 30,823)	( 46,223)	( 77,046)
	$ 31,039	$ 2,553	$ 33,592

Note: The balance of the transfer amount is the transfer from prepayments for business facilities.

Details of amortization of intangible assets are as follows:

	2025	2024
Operation cost	$ 498	$ 294
General & administrative expenses	3,855	3,844
	$ 4,353	$ 4,138

The Company did not pledge intangible assets to others as collateral.

~41~

(XI) Short-term borrowings

The balance of the Company’s short-term borrowings as of December 31, 2025 and 2024 was $0. The promissory notes issued by the Company for short-term borrowing facilities are as follows:

	December 31, 2025	December 31, 2024
Guarantee notes	$ 6,260,000	$ 6,360,000

(XII) Short-term bills payable

The balance of the Company’s short-term bills payable as of December 31, 2025 and 2024 was $0. The promissory notes issued by the Company for short-term notes payable facilities are as follows:

	December 31, 2025	December 31, 2024
Guarantee notes	$ 700,000	$ 700,000

(XIII) Other payables

	December 31, 2025	December 31, 2024
Salary and wages payable	$ 765,786	$ 610,921
Other charges payable	60,163	56,480
	$ 825,949	$ 667,401

(XIV) Long-term borrowings

The balance of the Company’s long-term borrowings as of December 31, 2025 and 2024 was both $0. The guaranteed bills for the long-term notes and bills quota issued by the Company are as follows:

	December 31, 2025	December 31, 2024
Guarantee notes	$ 3,521,000	$ 3,521,000

(XV) Provisions

	2025			2024
	Warranty provision	Decommissioning liability	Total	Warranty provision
January 1	$ 153,292	$ -	$ 153,292	$ 134,473
Provisions recognized for the current period	27,987	968	28,955	38,575
Provisions utilized during the current period	( 17,725)	-	( 17,725)	( 10,507)
Unused amount reversed for the period	( 2,270)	-	( 2,270)	( 9,249)
December 31	$ 161,284	$ 968	$ 162,252	$ 153,292

An analysis of provisions is as follows:

	December 31, 2025	December 31, 2024
Current	$ 87	$ -
Non-current	162,166	153,292
	$ 162,253	$ 153,292

Warranty provision

The Company's provision for warranty mainly arises from construction projects and is estimated based on the contract amount of each project.

Decommissioning liability

According to the announcement of the Bureau of Energy, Ministry of Economic Affairs, regarding the "Regulations for the Management of Setting up Renewable Energy Power Generation Equipment," the "Operational Guidelines for the Collection, Expenditure, Custody, and Utilization of the Recycling Fee for Solar Photovoltaic Power Generation Equipment Modules," and "A Certain Amount of Module Recycling Fee Payable for the Installation and Replacement of Solar Power Generation Equipment," installers of solar photovoltaic generation equipment must estimate solar photovoltaic module recycling fees in accordance with the aforementioned regulations. The Company completed the installation of solar panels in September 2025. In accordance with regulations, related payments are made over 10 years, and related decommissioning liabilities are recognized based on the present value discounted at the effective interest rate, totaling NT$968.

(XVI) Other non-Current liabilities

	December 31, 2025	December 31, 2024
Net defined benefit liability	$ 67,954	$ 61,906
Provisions	162,166	153,292
Guarantee deposits received	37,777	33,162
	$ 267,897	$ 248,360

(XVII) Pensions

(1) In accordance with the Labor Standards Act, the Company has established a defined benefit plan. This plan applies to the years of service rendered by all formal employees prior to the implementation of the Labor Pension Act on July 1, 2005, as well as to the subsequent years of service of employees who elected to continue under the Labor Standards Act after its implementation. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company contributes an amount equal to 2% of the employees' monthly salaries and wages each month to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. In addition, the Company assesses the balance in the aforementioned labor pension reserve account by the end of December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method, the Company will make contributions to employees expected to be qualified for retirement next year to cover the deficit by next March.

(2) Amounts recognized in the balance sheet are as follows:

	December 31, 2025	December 31, 2024
Present value of defined benefit obligation	($ 195,895)	($ 185,809)
Fair value of plan assets	127,941	123,903
Net defined benefit liability (presented under “other non-current liabilities”)	($ 67,954)	($ 61,906)

(3) The movements in the net defined benefit liability are as follows:

	Present value of defined benefit obligation	2025
		Fair value of plan assets	Net defined benefit liability
January 1	($ 185,809)	$ 123,903	($ 61,906)
Current service cost	( 446)	-	( 446)
Interest (expense) income	( 2,829)	1,892	( 937)
	( 189,084)	125,795	( 63,289)
Re-measurement:
Return on plan assets (excluding amounts included in interest income or expense)	-	8,690	8,690
Effect of change in financial assumptions	( 2,707)	-	( 2,707)
Experience adjustments	( 11,328)	-	( 11,328)
	( 14,035)	8,690	( 5,345)
Appropriation of pension fund	-	656	656
Pension benefits paid	7,224	( 7,200)	24
December 31	($ 195,895)	$ 127,941	($ 67,954)

	Present value of defined benefit obligation	2024
		Fair value of plan assets	Net defined benefit liability
January 1	($ 200,568)	$ 116,026	($ 84,542)
Current service cost	( 571)	-	( 571)
Interest (expense) income	( 2,225)	1,270	( 955)
	( 203,364)	117,296	( 86,068)
Re-measurement:
Return on plan assets (excluding amounts included in interest income or expense)	-	10,724	10,724
Effect of change in financial assumptions	4,782	-	4,782
Experience adjustments	8,381	-	8,381
	13,163	10,724	23,887
Appropriation of pension fund	-	275	275
Pension benefits paid	4,392	( 4,392)	-
December 31	($ 185,809)	$ 123,903	($ 61,906)

(4) The assets of the defined benefit pension plan of the Company are managed by the Bank of Taiwan in accordance with the proportions and amount ranges specified in the fund's annual investment plan, and in accordance with the categories set forth in Article 6 of the Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund (i.e. deposits with domestic and foreign financial institutions; investments in domestic and foreign TWSE/TPEx listed or privately placed equity securities; and investments in securitized products backed by domestic and foreign real estate), in accordance with the proportions and amount ranges specified in the fund's annual investment plan. The relevant investment activities are supervised by the Labor Retirement Fund Supervisory Commission. The annual distribution of returns from the utilization of the fund shall not be lower than the return calculated based on the two-year time deposit interest rate of local banks. Any shortfall shall, upon approval by the competent authority, be made up by the national treasury. As the Company has no authority to participate in the operation and management of the fund, it is unable to disclose the classification of the fair value of plan assets in accordance with paragraph 142 of International Accounting Standard 19 The fair value of the assets constituting the total assets of the fund as of December 31, 2025 and 2024, respectively, is disclosed in the annual Labor Pension Fund utilization reports published by the government.

(5) A summary of the actuarial assumptions related to pensions is as follows:

	2025	2024
Discount rate	1.30%	1.55%
Future wage increase rate	3.00%	3.00%

For the years 2025 and 2024, the assumptions regarding future mortality rates are estimated based on the Taiwan life insurance sector 6th experience mortality table respectively.

An analysis of the present value of defined benefit obligations affected by changes in the major actuarial assumptions is as follows:

	Discount rate		Future wage increase rate
	Increase by 0.25%	Decrease by 0.25%	Increase by 0.25%	Decrease by 0.25%
December 31, 2025
Impact on the present value of defined benefit obligations	($ 2,709)	$ 2,773	$ 2,720	($ 2,671)
December 31, 2024
Impact on the present value of defined benefit obligations	($ 2,892)	$ 2,966	$ 2,916	($ 2,859)

The sensitivity analysis above is based on the impact of changes in a single assumption, with all other assumptions held constant. In practice, changes in many assumptions may be interrelated. The sensitivity analysis is consistent with the methods used in calculating the net defined benefit liability recognized in the balance sheet.

The methods and assumptions used in preparing the sensitivity analysis for the current period are the same as those applied in the prior period.

(6) Expected contributions to the defined benefit pension plans of the Company for 2026 amount to NT$2,981.

(7) As of December 31, 2025, the weighted average duration of the retirement plan is 5 years. The maturity analysis for pension payment is as follows:

Less than one year	$	10,630
1–2 years		30,680
2–5 years		67,919
More than 5 years		101,304
	$	210,533

(1) Effective July 1, 2005, the Company has established a defined contribution pension plan (the "New Plan") under the Labor Pension Act (the "Act"), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company contributes monthly an amount equal to 6% of the employees' monthly salaries and wages to the employees' individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in a lump sum upon termination of employment.

(2) For the years ended December 31, 2025 and 2024, the retirement benefit costs recognized by the Company in accordance with the aforementioned pension plan were $44,421 and $41,760, respectively.

(XVIII) Capital

As of December 31, 2025 and 2024, the Company had 310,716 thousand and 258,930 thousand shares outstanding, respectively.
As of December 31, 2025, the Company's authorized capital was NT$4,000,000, and the paid-in capital was NT$3,107,160 with 310,716 thousand shares and a par value of NT$10 per share. All proceeds from shares issued have been collected.

The adjustments to the number of common shares (in thousands) outstanding at the beginning and end of the period are as follows:

	2025	2024
January 1	258,930	184,950
Conversion of earnings to capital increase	51,786	73,980
December 31	310,716	258,930

The Company's shareholders' meeting reached the resolution threshold through electronic voting on May 13, 2025, to conduct capitalization of the undistributed earnings of NT$517,860 by issuing new shares. It was reported to and approved by the competent authority on July 1, 2025. The ex-rights record date was August 9, 2025, and the registration of the change was completed on September 15, 2025.
The Company's shareholders' meeting reached the resolution threshold through electronic voting on May 16, 2024 to conduct capitalization of the undistributed earnings of NT$739,800 by issuing new shares. It was reported to and approved by the competent authority on July 11, 2024. The ex-rights record date was August 20, 2024, and the registration of the change was completed on September 12, 2024.

(XIX) Capital surplus

Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Act requires that the amount of capital surplus to be capitalized mentioned above should not exceed 10% of the paid-in capital each year. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

(XX) Retained earnings

Under the Articles of Incorporation of the company, the earnings, if any, shall be distributed after close of the year as follows:

(1) First pay income tax.
(2) Make up loss accumulated in previous year, if any.
(3) Amortize 10% as legal reserve unless the accumulated legal reserve is up to the total capital of the Company.
(4) Amortize or rotate special reserve as required by law or the competent authority.
(5) For the balance after deduction of the sums under Paragraphs (1)-(4), the Board of Directors shall propose the allocation to be duly allocated after being submitted and resolved in the shareholders’ meeting.

The Company sets its dividend policy pursuant to the Company Act and the Company’s Articles of Incorporation, taking into account the Company’s capital and financial structure, conditions of business operation, earnings, the attributes of industries and cycles concerned. The Company pays dividends by means of either stock dividend or cash dividends. However, dividends to shareholders shall be paid in the amount of no less than 50% of the balance of the net profit after tax for the year deducting the provision for legal reserve and various special reserves, within the balance of the distributable earnings for the current year. For cash dividends, the ratio of cash dividend shall not be less than 30% of the total dividends for the year.
Except for covering accumulated deficits or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserves for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the balance of the reserve exceeds 25% of the Company’s paid-in capital.
(1) The 2024 earnings distribution proposal was passed by the shareholders' meeting on May 13, 2025 and the 2023 earnings distribution proposal was approved by the shareholders' meeting on May 16, 2024 as follows:

	2024		2023
	Amount	Dividend per share (NTD)	Amount	Dividend per share (NTD)
Legal reserve	$ 279,366		$ 191,083
Cash dividend	1,993,761	$ 7.70	998,730	$ 5.40
Stock dividend	517,860	2.00	739,800	4.00
Total	$ 2,790,987		$ 1,929,613

(2) For the abovementioned shareholders’ meeting resolution on the appropriation of earnings, please refer to the “Market Observation Post System” of the Taiwan Stock Exchange.

On March 13, 2026, the Board of Directors of the Company proposed and approved the earnings distribution for the year 2025 as follows:

	2025
	Amount	Dividend per share (NTD)
Legal reserve	$ 333,577
Cash dividends	3,004,624	$ 9.67
Total	$ 3,338,201

(XXI) Other equity items

	Unrealized valuation profit or loss
	2025	2024
January 1	$ 1,640,608	$ 1,166,513
Valuation – Total amount of the Company	( 1,018,099)	445,857
Valuation – Subsidiary	( 62,698)	28,238
December 31	$ 559,811	$ 1,640,608

(XXII) Operation income

	2025	2024
Revenue from contracts with customers:
Revenue from construction contracts	$ 24,898,441	$ 19,775,765
Service contract revenue	29,712	26,791
	$ 24,928,153	$ 19,802,556

Detail of customer contract income

The Company's revenue is derived from services transferred over time and can be disaggregated by the following major product lines and geographical regions:

	2025 Taiwan Construction business	2024 Taiwan Construction business
Departmental revenue	$ 24,928,153	$ 19,802,556
Timing of revenue recognition
Revenue recognized over time	$ 24,928,153	$ 19,802,556

~50~

Outstanding construction contracts

As of March 31, 2025, and 2024, for the signed construction contracts, the aggregated amounts of the transaction allocated to unsatisfied contract performance and the estimated recognition years are as follows:

Year	Year of the estimated recognized revenues	Amounts of the signed contracts
2025	2026–2030	$ 60,991,893
2024	2025–2030	$ 44,470,813

Contract assets and contract liabilities

The Company’s recognition of contract assets and contract liabilities related to contracts with customers is as follows:

	December 31, 2025	December 31, 2024	January 1, 2024
Contract asset:
Contract asset - Construction retainage	$ 2,405,325	$ 2,382,640	$ 2,291,703
Contract asset - Construction contract	3,687,866	2,457,590	2,251,027
Total	$ 6,093,191	$ 4,840,230	$ 4,542,730
Contract liability:
Contract liability - Construction contract	$ 2,289,431	$ 1,827,955	$ 2,153,720

The contract assets/contract liabilities recognized in the aforementioned construction contracts on December 31, 2025, December 31, 2024 and January 31, 2024 are as follows:

	December 31, 2025	December 31, 2024	January 1, 2024
Total costs incurred plus profits recognized (less losses recognized)	$ 59,144,466	$ 45,942,589	$ 40,664,152
Less: Amount requested for progress of works	( 57,746,031)	( 45,312,954)	( 40,566,845)
Status of net assets and liabilities of ongoing contracts	$ 1,398,435	$ 629,635	$ 97,307
Listed as:
Contract asset - Construction contract	$ 3,687,866	$ 2,457,590	$ 2,251,027
Contract liability - Construction contract	( 2,289,431)	( 1,827,955)	( 2,153,720)
	$ 1,398,435	$ 629,635	$ 97,307

For information on the credit risk of related contract assets, please refer to Note 12(2).

(XXIII) Operation cost

	2025	2024
Cost of construction contract	$ 20,350,281	$ 15,943,621
Service costs	20,167	20,931
	$ 20,370,448	$ 15,964,552

(XXIV) Interest revenue

	2025	2024
Interest on cash in banks	$ 16,560	$ 7,668
Interest income from the financial assets measured at amortized costs	17,500	17,500
Other interest income	256	11,009
	$ 34,316	$ 36,177

(XXV) Other income

	2025	2024
Dividend income	$ 138,421	$ 142,307
Gain on reversal of overdue payables	201	3,840
Reclassification of provisions to other income	2,270	9,249
Other income	26,403	10,211
	$ 167,295	$ 165,607

(XXVI) Other gains and losses

	2025	2024
Foreign currency exchange loss, net	($ 613)	($ -
Gain (loss) on disposal of property, plant and equipment	8,867	71
Gains on lease modifications	5	-
Others	72	307
	$ 8,187	($ 378)

(XXVII) Financial Costs

	2025	2024
Interest expense:
Bank loan	$ 1,841	$ 13,964
Interest expenses of lease liabilities	15,112	14,691
Interest expense on decommissioning liabilities	5	-
	$ 16,958	$ 28,655

(XXVIII) Additional information of expenses by nature

	2025	2024
Materials input and construction costs for the current period	$ 18,311,788	$ 14,372,178
Employee benefit expense	2,053,400	1,637,338
Depreciation expenses for property, plant and equipment	115,145	80,512
Depreciation expenses for right-of-use assets	103,685	94,358
Amortization of intangible assets	4,353	4,138
Expected credit impairment losses (gains)	170	(61)
Other expense	594,214	500,928
Operating costs and expenses	$ 21,182,755	$ 16,689,391

(XXIX) Employee benefit expense

	2025	2024
Wages and salaries	$ 1,812,086	$ 1,428,451
Labor and Health Insurance costs	108,804	92,699
Pension expense	45,804	43,286
Directors’ Remuneration	4,076	3,956
Other employment fees	82,630	68,946
	$ 2,053,400	$ 1,637,338

According to the Company's Articles of Incorporation, if there is a surplus after deducting accumulated losses from the current year's profits, not less than 1% shall be appropriated as employee remuneration. The total amount of employee remuneration allocated to non-executive employees shall not be less than 40% of the total employee remuneration.

For the years ended December 31, 2025 and 2024, the estimated amounts of employee compensation recognized by the Company were NT$41,386 and NT$34,373, respectively. The above amounts were recorded under salary expense.

For the year 2025, it was estimated at 1% based on the profitability for the year. The Board of Directors resolved to distribute $41,386 in cash.

Employees’ compensation of 2024 as resolved by the Board of Directors was consistent with the amount recognized in the 2024 financial statements. Employee’ compensation for 2024 was paid entirely in cash and has been fully disbursed in February 2026.

Information about employees’ compensation and directors’ and supervisors’ remuneration of the Company as resolved by the board of directors and the shareholders at the shareholders’ meeting will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

(XXX) Income tax

Income tax expense

(1) Components of Income tax expense:

	2025	2024
Current income tax:
Income tax from the income of the current period	$ 756,737	$ 633,327
Extra imposed on undistributed earnings	134	-
Underestimation (overestimation) on income tax for prior years	2,621	( 526)
Total income tax for current period	759,492	632,801
Deferred income tax:
Origination and reversal of temporary differences	( 2,350)	( 4,124)
Total deferred income tax	( 2,350)	( 4,124)
Income tax expense	$ 757,142	$ 628,677

(2) Income tax relating to other comprehensive income:

	2025	2024
Remeasurement of defined benefit obligation	$ 1,069	($ 4,777)

Adjustment for the difference between accounting income and taxable income:

	2025		2024
Income tax calculated at the statutory rate on pre-tax net income.	$	819,451	$ 680,581
Income that is exempt from tax as stipulated by tax law.	(	59,859)	( 51,638)
Changes in the assessment of the realizability of deferred tax assets	(	5,738)	-
Expenses to be deducted under tax law		533	260
Underestimation (overestimation) on income tax for prior years		2,621	( 526)
Extra imposed on undistributed earnings		134	-
Income tax expense	$	757,142	$ 628,677

The amounts of deferred income tax assets or liabilities arising from temporary differences are as follows:

	2025
	January 1	Recognized in profit or loss	Recognized in other comprehensive income	December 31
Deferred tax assets:
- Temporary difference:
Actuarial gains and losses on pensions	$ 7,246	$ 140	$ 1,069	$ 8,455
Warranty provision	30,658	1,599	-	32,257
Unrealized gains	10,259	372	-	10,631
Gain or loss on valuation of financial assets	44,299	-	-	44,299
Loss on market value decline of inventory	416	236	-	652
Unrealized expense on decommissioning liabilities	-	3	-	3
	92,878	2,350	1,069	96,297
Deferred income tax liabilities:
- Temporary difference:
Capital surplus	( 13,939)	-	-	( 13,939)
	$ 78,939	$ 2,350	$ 1,069	$ 82,358

~55~

	January 1	Recognized in profit or loss	2024 Recognized in other comprehensive income	December 31
Deferred tax assets:
- Temporary difference:
Actuarial gains and losses on pensions	$ 11,773	$ 250	($ 4,777)	$ 7,246
Warranty provision	26,895	3,763	-	30,658
Unrealized gains	10,480	( 221)	-	10,259
Gain or loss on valuation of financial assets	44,299	-	-	44,299
Loss on market value decline of inventory	84	332	-	416
	93,531	4,124	( 4,777)	92,878
Deferred income tax liabilities:
- Temporary difference:
Capital surplus	( 13,939)	-	-	( 13,939)
	$ 79,592	$ 4,124	($ 4,777)	$ 78,939

The Company’s income tax returns through 2023 have been assessed as approved by the Tax Authority.

(XXXI) Earnings per share

	After-tax amount	2025 Retroactively adjusted number of shares outstanding (thousand shares)	Earnings per share (NTD)
Basic earnings per share
Net income attributable to ordinary shareholders	$ 3,340,115	310,716	$ 10.75
Diluted earnings per share
Net income attributable to ordinary shareholders	$ 3,340,115	310,716
Dilutive potential ordinary shares effecting employee compensation	-	285
Effects of the net income attributable to ordinary shareholders plus potential ordinary shares	$ 3,340,115	311,001	$ 10.74

~56~

| | After-tax amount | 2024
Retroactively adjusted
number of shares
outstanding (thousand
shares) | Earnings per
share (NTD) |
| --- | --- | --- | --- |
| Basic earnings per share
Net income attributable to ordinary
shareholders | $ 2,774,232 | 310,716 | $ 8.93 |
| Diluted earnings per share
Net income attributable to ordinary
shareholders | $ 2,774,232 | 310,716 | |
| Dilutive potential ordinary shares
effecting employee compensation | - | 263 | |
| Effects of the net income attributable
to ordinary shareholders plus
potential ordinary shares | $ 2,774,232 | 310,979 | $ 8.92 |

The above retroactive adjustments to the number of shares outstanding have been retroactively adjusted in proportion to the capitalization of retained earnings in 2025.

(XXXII) Cash flow supplementary information

Investing and financing activities not affecting cash flow:

	2025	2024
Prepayments for business facilities
reclassified to property, plant and
equipment	$ 147,798	$ 23,094
Prepaid equipment payments
reclassified as intangible assets.	$ 35	$ 650

(XXXIII) Changes of liabilities from financing activities

	2025
	Short-term bills payable	Long-term borrowings (including those due within one year or one operating cycle)	Lease liabilities (including those due within 1 year)	Guarantee deposits received	Total liabilities from financing activities
January 1	$ -	$ -	$ 972,303	$ 33,162	$ 1,005,465
Changes of the financing cash flows	-	-	( 99,631)	4,615	( 95,016)
Newly added lease contracts	-	-	45,646	-	45,646
Lease contract modifications	-	-	13,612	-	13,612
December 31	$ -	$ -	$ 931,930	$ 37,777	$ 969,707
	2024
---	---	---	---	---	---
	Short-term bills payable	Long-term borrowings (including those due within one year or one operating cycle)	Lease liabilities (including those due within 1 year)	Guarantee deposits received	Total liabilities from financing activities
January 1	$ 99,996	$ 1,800,000	$ 934,002	$ 18,467	$ 2,852,465
Changes of the financing cash flows (Newly added lease contracts)	( 100,000)	( 1,800,000)	( 88,553)	14,695	( 1,973,858)
Lease contract modifications	-	-	61,761	-	61,761
Other non-cash changes	4	-	65,093	-	65,093
December 31	$ -	$ -	$ 972,303	$ 33,162	$ 1,005,465

VII. Transaction with Related Parties

(I) Names of related parties and relationship

Name of the related party	Relationship with the Company
Ruentex Development Co., Ltd. (Ruentex Development)	The Company’s parent company
Ruentex Materials Co., Ltd.	Subsidiary of the Company
Ruen Yang Construction Co., Ltd.	Subsidiary of the Company
Ruentex Interior Design Inc.	Sub-subsidiary of the Company
Ruentex Innovative Development Co., Ltd. (Ruentex Innovative Development)	Fellow subsidiary
Ruentex Property Management and Maintenance Co., Ltd.	Fellow subsidiary
Ruentex Construction & Development	Fellow subsidiary

Co., Ltd.

Ruentex Industries Ltd. (Ruentex Industries)
Ruentex Construction & Engineering Co., Ltd. (Ruentex Construction)
Huei Hong Investment Co., Ltd. (Huei Hong) (Note 2)
Nan Shan Life Insurance Co., Ltd. (Nan Shan Life Insurance)
Nan Shan General Insurance Co., Ltd.
Shing Yen Construction & Development Co., Ltd.
Ruen Hua Dyeing & Weaving Co., Ltd. (Ruen Hua) (Note 2)
OBI Pharma, Inc.
Yi Tai Investment Co., Ltd.
Shu-Tien Urology and Ophthalmology Clinic
Ruentex Xing Co. Ltd.
Teh Hsin Enterprise Co., Ltd. (Teh Hsin) (Note 1)
Ecodax Co., Ltd. (Note 1)
Ying Chia Investment Co., Ltd. (Ying Chia) (Note 2)
Jen Ying Industrial Co., Ltd. (Jen Ying) (Note 2)
Lee Chih-Hung
Mo, Wei-Han

Other related parties (investee accounted for using the equity method by the parent company)
Other related party (the Company's management personnel is the representative of the juridical person director of the company)
Other related party (The Company's representative of the juridical person director is the representative of the juridical person director of the company)
Other related parties (investee accounted for using the equity method by the parent company)
Other related parties (subsidiaries of investees accounted for using the equity method by the parent company)
Other related parties (investee accounted for using the equity method by the parent company)
Other related party (the Company's management personnel is the representative of the juridical person director of the company)
Other related party (the Company's substantial related party)
Other related party (the Company's management personnel is the representative of the juridical person director of the company)
Other related party (juridical person director of the parent company's associates)
Other related party (its director is the representative of the juridical person director of the Company)
Associate (investee accounted for using the equity method by the Company)
Other related party (the chairman of an associate accounted for using the equity method by the Company serves as the legal representative of the company as a corporate director)
Other related party (The Company's representative of the juridical person director is the representative of the juridical person director of the company)
Other related party (its director is the representative of the juridical person director of the Company)
Key management personnel (Chairperson of the Company)
Key management personnel (President of the Company and chairperson of the subsidiary)

~58~

Note 1: Subsidiary – Ruentex Materials acquired shares of Teh Hsin on November 15, 2024, with a 35% Shareholding. Teh Hsin became an associate of the Company, and transactions with Teh Hsin have been disclosed since that date.

Note 2: For relevant material subsequent events, please refer to Note 11.

(II) Significant related party transactions and balances

Operating Revenue

	2025	2024
Contract of construction:
- Ruentex Development	$ 4,044,573	$ 3,947,060
- Subsidiary	22,727	-
- Sub-subsidiary	444,390	5,052
- Fellow subsidiary	83,617	411,692
- Other related parties	68,473	131,643
Service sales:
- Subsidiary	21,984	21,984
Total	$ 4,685,764	$ 4,517,431

The contract price of the contract of construction and sales of service are negotiated by both parties and are collected by the due date as stated in the contract.

Purchases of goods

	2025	2024
Teh Hsin	$ 1,152,561	$ 18,465
Subsidiary	199,266	185,170
Sub-subsidiary	11,023	48,366
Fellow subsidiary	158	-
Other related parties	15,171	4,460
	$ 1,378,179	$ 256,461

(1) The purchase price of the abovementioned related parties is determined through negotiation by both parties. The payment of the purchases shall be processed according to the payment terms in the contract.

(2) Regarding the procurement contracts signed by the Company and related parties, the unfinished procurement contracts and the payment amounts were as follows:

	December 31, 2025		December 31, 2024
	Total contract amount (tax excluded)	Amount paid	Total contract amount (tax excluded)	Amount paid
Teh Hsin	$ 1,345,092	$ 943,730	$ 757,059	$ 611,767
Subsidiary	632,277	382,245	488,814	347,918
	$ 1,977,369	$ 1,325,975	$ 1,245,873	$ 959,685

3. Receivables from related parties

	December 31, 2025	December 31, 2024
Notes receivable:
- Ruentex Development	$ 431,428	$ 109,824
- Fellow subsidiary	-	15,841
	$ 431,428	$ 125,665
Accounts receivable:
- Ruentex Development	$ 300,524	$ 298,733
- Subsidiary	8,951	1,923
- Fellow subsidiary	87,197	49,611
- Other related parties	68,733	2,125
	$ 465,405	$ 352,392
Other receivables (Note 1):
- Nan Shan Life Insurance	$ 9,037	$ 9,037
- Subsidiary	2,156	864
- Other related parties	266	534
	$ 11,459	$ 10,435
Contract assets (Note 2):
- Ruentex Development	$ 450,301	$ 513,302
- Fellow subsidiary	5,459	88,049
- Other related parties	-	8,774
	$ 455,760	$ 610,125

Note 1: Mainly consists of interest receivable and salary receivables arising from personnel secondment.
Note 2: Mainly the retention money related to construction contracts.

~61~

4. Payables to related parties

	December 31, 2025	December 31, 2024
Notes payable:
- Teh Hsin	$ 80,175	$ -
- Subsidiary	14,083	7,595
- Other related parties	4,219	1,920
	$ 98,477	$ 9,515
	December 31, 2025	December 31, 2024
Accounts payable:
- Teh Hsin	$ 354,028	$ 607
- Subsidiary	26,645	21,858
- Sub-subsidiary	1,157	8,678
- Other related parties	223	646
	$ 382,053	$ 31,789

5. Incomplete work of construction contracting and advance Construction Receipts

	December 31, 2025		December 31, 2024
	Total contract amount (tax excluded)	Amount requested for progress of works	Total contract amount (tax excluded)	Amount requested for progress of works
Ruentex Innovation	$ 40,648,870	$ 12,497,535	$ 31,570,275	$ 10,643,969
Ruentex Innovative Development	145,930	103,975	3,406,230	3,304,516
Subsidiary	30,843	23,315	-	-
Sub-subsidiary	489,735	330,715	-	-
Fellow subsidiary	231,457	-	-	-
Other related parties	20,587	8,897	365,216	337,330
	$ 41,567,422	$ 12,964,437	$ 35,341,721	$ 14,285,815

6. Interest revenue

	2025	2024
Interest income from the financial assets measured at amortized costs
- Nan Shan Life Insurance	$ 17,500	$ 17,500

~62~

7. Lease transactions - lessees/rent expenses

(1) The Company leases land from Ruentex Industries, and the lease agreement with Ruentex Industries covers the period from June 2022 to May 2040, and has also recognized the right-of-use asset/lease liability of NT$342,534. The lease contracts are negotiated individually, with different terms and conditions. The leased assets are neither to be used as collaterals for loans, nor the rights to be transferred to others in the form of business transfer or merge, among other forms.

(2) The Company entered into a land lease agreement with Ruentex Industries in June 2020, with the lease term extending until May 2040. The Company subsequently completed partial handovers of the leased assets in September 2022 and December 2024, and recognized right-of-use assets and lease liabilities in the amounts of NT$506,812 and NT$59,326, respectively. According to the terms and conditions of lease contracts, the leased assets are neither to be used as collaterals for loans, nor the rights to be transferred to others in the form of business transfer or merge, among other forms.

(3) The land lease contracts signed with Ruentex Industries as mentioned above are adjusted according to the consumer price index as stipulated in the contract; please refer to Note 6(9)6 for details.

(4) Rent expenses of short-term lease contracts

	2025	2024
Other related parties	$ 49,319	$ 47,299

(5) Lease liabilities

A. Balance at the end of the period:

Other related parties

	December 31, 2025	December 31, 2024
Total amount of lease liabilities	$ 888,326	$ 928,485
Less: Current portion (listed as lease liabilities – current)	( 55,265)	( 53,571)
	$ 833,061	$ 874,914

B. Interest Costs:

	2025	2024
Other related parties	$ 14,491	$ 13,859

Refundable deposits (recorded as other non-current assets)

	December 31, 2025	December 31, 2024
Other related parties	$ 760	$ 760

It's mainly the refundable deposits for leased factory buildings.

Property Transactions

(1) For the acquisition of financial assets, please refer to Note 6(5)3.
(2) On September 16, 2025, the Company purchased transportation equipment and office equipment from its parent company, Ruentex Development, for NT$400.

The Company's endorsements or guarantees made for related parties

Subsidiary	December 31, 2025	December 31, 2024
	$ 88,368	$ 88,368

Endorsements or guarantees made by related parties

Key management	December 31, 2025	December 31, 2024
	$ 11,802,870	$ 11,902,870

(III) Key management compensation information

	2025	2024
Salaries and other short-term employee benefits	$ 196,575	$ 169,212
Post-employment benefits	2,359	2,353
Termination benefits	-	1,111
Total	$ 198,934	$ 172,676

VIII. Pledged Assets

The Company’s assets pledged as collateral are as follows:

Asset items	December 31, 2025	December 31, 2024	For guarantee purpose
Other financial assets-current (listed as “other current assets”)	$ 123,197	$ 120,119	Guarantees for construction performance bonds and warranties

IX. Significant Contingent Liabilities and Unrecognized Commitments

(I) Contingencies

None.

(II) Commitments

Except those described in Note 6(9), and 7, other material commitments are as follows:

As of December 31, 2025 and 2024, the total amount of construction contracts entered into by the Company for construction projects was NT$66,532,771 and NT$55,411,557, respectively. Amounts of NT$40,440,441 and NT$32,791,757 have been paid, respectively, and the remainder will be paid based on the stage of completion.
Guarantee

(1) The Company obtained letters of guarantee from banks for the performance of the contracting work on December 31, 2025 and 2024 in the amounts of NT$1,000,000 each. The amounts of letters of guarantee utilized were NT$243,733 and NT$409,300, respectively.

(2) The Company obtained letters of guarantee from banks for the performance of the contracting work on December 31, 2024 and 2025 in the amounts of NT$9,540,625 and NT$9,523,623, respectively. The amounts of letters of guarantee utilized were NT$3,074,721 and NT$1,695,063, respectively.

As of December 31, 2025, the amounts of letters of credit issued but not yet utilized by the Company are as follows:

Currency (thousands)	December 31, 2025	December 31, 2024
USD	$ 403	$ 347
JPY	16,727	-
TWD	3,455	-

X. Significant Disaster Loss

None.

XI. Significant subsequent events

On February 9, 2026, the Company’s Board of Directors approved the acquisition of a 100% equity interest in Jun Tai Construction from related parties Huei Hong, Ying Chia, Jen Ying and Ruen Hua, at a price of NT$49.25 per share for a total of 12,030,905 shares, with a total transaction amount of NT$592,522. This price was determined based on a fair value evaluation report issued by an independent expert and a price reasonableness letter issued by certified public accountants. As of March 13, 2026, the procedures for the transfer and registration of the equity interests have not yet been completed.
For other material subsequent events, please refer to Notes 6(5), (20), and (29).

XII. Others

(I) Capital management

The Company’s objectives when managing capital are to safeguard the company’s ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return share capital to shareholders, issue new shares or sell assets in order to adjust to reach the most suitable capital structure.

(II) Financial instruments

Type of financial instruments

	December 31, 2025	December 31, 2024
Financial assets
Financial assets at fair value through other comprehensive income acquired - non-Current	$ 3,126,125	$ 4,144,224
Financial assets at amortized cost
Cash and cash equivalents	$ 1,214,681	$ 1,588,167
Notes receivable (including related parties)	619,844	132,110
Accounts receivable (including related parties)	2,676,813	1,041,839
Other Receivables (including related parties)	14,419	11,559
Amortized cost financial Assets - non-Current	500,000	500,000
Other financial assets (listed as “other current assets”)	123,197	120,119
Refundable deposits listed in (“other current assets” and “other non-current assets”)	40,801	32,007
	$ 5,189,755	$ 3,425,801

~66~

	December 31, 2025	December 31, 2024
Financial liabilities
Financial liabilities are carried at amortized cost
Notes payable (including related parties)	$ 937,152	$ 857,442
Accounts payable (including related parties)	3,354,576	1,810,114
Other payables	825,949	667,401
Guarantee deposits received (listed as “other non-current liabilities”)	37,777	33,162
	$ 5,155,454	$ 3,368,119
Lease liabilities - current and non-current	$ 931,930	$ 972,303

2. Risk management policies

(1) The Company’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk, and price risk), credit risk, and liquidity risk. The Company’s overall risk management policy emphasizes the unforeseeable matters of the financial market and seeks to lower the effects from potential disadvantages to the Company’s financial position and performance.

(2) Risk management is executed by the Company’s finance department according to the policies approved by the Board of Directors. The Company’s finance department works closely with operating units to identify, assess, and mitigate financial risks. The board of directors provides written principles for overall risk management, as well as written policies covering specific areas and matters, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.

3. Significant financial risks and degrees of financial risks

(1) Market risk

Foreign exchange risk

A. The Company’s financial risk management’s objective is to manage currency exchange risk, interest risk, credit risk, and liquidity risk regarding operating activities. To reduce relevant financial risks, the Company is devoted to identifying, evaluating, and circumventing market uncertainties to mitigate the potential negative impacts on the Group’s financial performance due to market movements.

B. The exchange loss recognized by the Group on monetary items due to significant fluctuations in exchange rates, including both realized and unrealized amounts, for the years 2025 and 2024 amounted to $613 and $0, respectively.

~67~

Price risk

A. The Company’s equity instruments exposed to price risk were the financial assets at fair value through other comprehensive income. To manage its price risk arising from investments in equity securities, the Company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Company.

B. The Company mainly invests in domestic or foreign equity instruments. The prices of equity instruments is affected by the uncertainty of the future value of investment subject matters. If the prices of these equity instruments had increased/decreased by 1%, with all other variables held constant, other comprehensive income resulting from the classification of gains or losses at fair value through other comprehensive income for the years ended December 31, 2025, and 2024, would have increased/decreased by NT$31,261 and NT$41,442, respectively.

(2) Credit risk

A. Credit risk refers to the risk of financial loss to the Company arising from default by clients or transaction counterparties on the contractual obligations of financial instruments. Such risk is mainly due to the counterparties’ inability to repay the accounts receivable and contract assets according to the payment terms, and it is classified as contract cash flow at amortized cost.

B. The Company established management of credit risk from a company’s perspective. For corresponding banks and financial institutions, the Company set up to only accept transaction counterparties receiving the credit raking of at least Class “A”. According to the internally specified credit extension policy, before each operating entity and each new customer of the Company establish the terms for payment and goods delivery, it is necessary to perform management and credit risk analysis. The internal risk control considers the financial position, past experience and other factors in order to assess the credit quality of customers. Individual risk limits are set based on internal or external ratings in accordance with limits set by the board of directors. The utilization of credit limits is regularly monitored.

C. The Company adopts IFRS 9 to provide preliminary assumption, and when the payment specified according to the contract term has exceeded 90 days, breach of contract is deemed to have occurred.

D. The Company uses IFRS 9 to provide the following assumptions, to determine if the credit risks of the financial instrument significantly increased since the initial recognition.

When the contractual payments overdue from the payment terms for more than 30 days, it is deemed the credit risks of the financial instrument significantly increased since the initial recognition.

E. The indicators for determining the impairment of the debt instrument investment used by the Company are as follows:

(A) The possibilities that an issuer has a significant financial difficulty, or will become bankrupt or financial reorganized;

(B) Due to the financial difficulty of the issuer, such that the active market of the financial asset vanishes;
(C) An issuer delay or fail to repay the interests or principals;
(D) The unfavorable changes to the national or regional economic conditions leading to the default of an issuer.

F. The Company classifies the accounts payable of customers and contract assets according to the characteristics of customer rating and type, and adopts the simplified method to use the loss rate method as the basis for estimating the expected credit loss.
G. After the collection procedures, the amount of financial assets that cannot be reasonably estimated will be written off. However, the Company will continue to pursue the legal right of recourse to protect its claims.
H. The Company utilized the forecasting capabilities of the Taiwan Institute of Economic Research report to adjust historical and timely information in order to assess the likelihood of default and to estimate impairment provisions for accounts receivable (including related parties) and contract assets. As of December 31, 2025, and 2024, the loss rate methodology is as follows:

	Each	Group	Total
December 31, 2025
Expected loss	-	0%~0.01%
Total carrying amount	$ -	$ 8,770,419	$ 8,770,419
Allowance for losses	-	415	415
December 31, 2024
Expected loss	-	0%~0.01%
Total carrying amount	$ -	$ 5,882,314	$ 5,882,314
Allowance for losses	-	245	245

Group: Sales counterparties established for 10 years or more, accounts receivable arising from transactions with related parties, contracts for public construction, or debtors with a high probability of making payments.

I. The accounts receivable allowance loss change table under the simplified approach of the Company is as follows:

	2025		2024
January 1	$	245	$	306
Impairment loss (gain) recognized		170	(	61)
December 31	$	415	$	245

J. The financial assets measured at amortized cost recognized by the Company consist of subordinated corporate bonds. As the counterparties have good credit rating, the probability of default is considered to be very low.

(3) Liquidity risk

A. Cash flow forecasting is performed by each of the operating entities of the Company and aggregated by the Finance Department. The Company's finance department monitors forecasts of the Company's liquidity requirements to ensure that sufficient funds are available to meet operational needs.

B. Any surplus cash held by operating units, in excess of working capital requirements, is remitted to the Company's finance department. B. The Company's finance department then invests the remaining capital in a savings deposit with interest, time deposit, or equivalent cash – repurchase agreements, etc. The selected instruments have appropriate maturity dates or sufficient liquidity to align with the aforementioned forecasts and to provide adequate liquidity. As of December 31, 2025 and 2024, the Company held currency market positions of NT$838,114, and NT$1,381,766, respectively. These positions are expected to generate immediate cash flows for managing liquidity.

C. Details of the loan credit not yet drawn down by the Company are as follows:

	December 31, 2025	December 31, 2024
Due within one year	$ 4,091,874	$ 4,835,407
Due longer than one year	1,143,114	1,326,585
	$ 5,234,988	$ 6,161,992

D. The table below analyzes the Company's non-derivative financial liabilities and net-settled or gross-settled derivative financial liabilities by relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for non-derivative financial liabilities. The amounts disclosed in the following table are the contractual undiscounted cash flows:

Non-derivative financial liabilities:

December 31, 2025	3 months and below	Within 3 months to 1 year	More than 1 year
Notes payable (including related parties)	$ 932,304	$ 4,848	$ -
Accounts payable (including related parties)	1,817,326	893,538	643,712
Other payables	818,483	3,835	3,631
Lease liabilities (Note)	31,095	74,677	932,985

Non-derivative financial liabilities:

December 31, 2024	3 months and below	Within 3 months to 1 year	More than 1 year
Notes payable (including related parties)	854,319	3,123	-
Accounts payable (including related parties)	597,049	517,253	695,812
Other payables	654,450	4,169	8,782
Lease liabilities (Note)	25,195	75,585	991,035

Note: The amount includes the expected interest to be paid in the future.

(III) Fair value information

The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:

Level 1: Quoted prices (unadjusted) in active markets for identical Assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Company's investment in listed stocks is included.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Unobservable inputs for the asset or liability. The Company's investment in equity instruments without an active market is included.

The carrying amounts of the Company's financial instruments not measured at fair value, including cash and cash equivalents, notes receivable (including related parties), accounts receivable (including related parties), other receivables (including related parties), other financial assets, notes payable (including related parties), accounts payable (including related parties), other payables, and other financial liabilities are approximate to their fair values.

The related information of financial instruments measured at fair value by level on the basis of the nature, characteristics, and risks of the assets and liabilities is as follows:

(1) The Company classifies the assets based on its nature. Related information is as below:

December 31, 2025	Level 1	Level 2	Level 3	Total
Assets
Recurring fair value
Financial assets at fair value through other comprehensive income
Equity securities	$ 3,065,616	$ -	$ 60,509	$ 3,126,125
December 31, 2024	Level 1	Level 2	Level 3	Total
Assets
Recurring fair value
Financial assets at fair value through other comprehensive income
Equity securities	$ 4,071,212	$ -	$ 73,012	$ 4,144,224

(2) The methods and assumptions the Company used to measure fair value are as follows:

A. The Company's financial instruments are traded in active markets; its fair value is measured based on the market quotation at the end of the balance sheet date. The market price of the financial assets held by the Company is the closing market price. These instruments belong to Level 1. (Level 1 instruments are mainly equity instruments. Their classification is financial assets at fair value through other comprehensive income.)

B. Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques or by reference to counterparty quotes. Fair value obtained through the valuation techniques may be referenced to the current available fair value, discount cash flow method or valuation techniques of other financial instruments of similar natures and features, including value obtained through market information calculation model on the balance sheet date.

~71~

C. The output of valuation model is an estimated value and the valuation technique may not be able to capture all relevant factors of the Company's financial and non-financial instruments. Therefore, the estimated value derived using valuation model is adjusted accordingly with additional inputs, for example, model risk or liquidity risk and etc. In accordance with the Company's management policies and relevant control procedures related to the valuation models used for fair value measurement, management believes that adjustments to valuation are necessary to reasonably represent the fair value of financial and non-financial instruments on the balance sheet. The inputs and pricing information used during valuation are carefully assessed and adjusted based on Current market conditions.

D. The Company includes credit risk valuation adjustment in the fair value calculation for financial instruments and non-financial instruments to reflect the counterparty credit risk and the credit quality of the Company.

There was no transfer between the Level 1 and the Level 2 fair values for the years ended December 31, 2025 and 2024.
The following table shows the change of Level 3 fair value for the periods for the years ended December 31, 2025 and 2024.

| | 2025
Equity securities | 2024
Equity securities |
| --- | --- | --- |
| January 1 | $ 73,012 | $ 81,121 |
| Gains or losses recognized in other comprehensive income | | |
| Unrealized profit or loss on equity investments at fair value through other comprehensive income recognized | ( 12,503) | ( 8,109) |
| December 31 | $ 60,509 | $ 73,012 |

There have been no occurrences of transfer in or out for Level 3 for the years ended December 31, 2025 and 2024.
The significant non-observable input value quantified information and significant non-observable input value change sensitivity analysis for the valuation model used in relation to the Level 3 fair value measurements are as follows:

	Fair value on December 31, 2025	Valuation techniques	Significant unobservable inputs	Interval (weighted average)	Relationship between inputs and fair value
Non-derivative Equity Instrument:
Shares of non-TWSE/TPEx listed companies	$ 60,509	Comparable TWSE/TPEx listed companies	Discount for lack of marketability	20.53%	The higher the marketability discount, the lower the fair value.

~73~

	Fair value on December 31, 2024	Valuation techniques	Significant unobservable inputs	Interval (weighted average)	Relationship between inputs and fair value
Non-derivative Equity Instrument:
Shares of non-TWSE/TPEx listed companies	$ 73,012	Comparable TWSE/TPEx listed companies	Discount for lack of marketability	21.04%	The higher the marketability discount, the lower the fair value.

The Company carefully assesses and selects the valuation model and valuation parameters used; however, when different valuation models or valuation parameters are used, it may lead to different valuation results. For financial assets classified as Level 3, if there is a change in the valuation parameters, then the impact on profit or loss or other comprehensive income is as follows:

| | | | 2025
Recognized as other comprehensive income | |
| --- | --- | --- | --- | --- |
| | Inputs | Changes | Favorable changes | Favorable changes |
| Financial assets
Equity
Instrument | Discount for lack of marketability | ±1% | $ 605 | ($ 605) |
| | | | 2024
Recognized as other comprehensive income | |
| | Inputs | Changes | Favorable changes | Favorable changes |
| Financial assets
Equity
Instrument | Discount for lack of marketability | ±1% | $ 730 | ($ 730) |

XIII. Separately Disclosed Items

(I) Information on significant transactions (including information on subsidiaries)

Loans to others: None.
Provision of endorsements and guarantees to others: Please refer to Table 1.
Significant marketable securities held at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to Table 2.
Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid-in capital or more: Please refer to Table 3.

Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more: Please refer to Table 4.
Business relationships and significant transactions between the parent company and subsidiaries: Transaction amount reaching NT$10,000 thousand shall be disclosed in terms of assets and revenue. Please refer to Table 5.

(II) Information on Investees

Names, locations and other information of investees (not including investees in China): Please refer to Table 6.

(III) Information on Investments in China

None.

XIV. Operating segment information

Not applicable.

~74~

Ruentex Engineering & Construction Co., Ltd.
Endorsements and Guarantees for Others
For the Years Ended December 31, 2025

Attached Table 1

Unit: NT$ thousands

(Except as Otherwise Indicated)

No. (Note 1)	Name of the company making an endorsement/guarantee	Entity for which the endorsement/guarantee is made		Endorsement and guarantee limit for a single enterprise (Note 3)	Current maximum endorsement/guarantee balance (Note 4)	Balance of endorsements/guarantees at the end of the period (Note 5)	Actual drawing down amount (Note 6)	Amount of endorsements/guarantees secured by property	Cumulative amount of endorsements/guarantees as a percentage of the net worth as stated in the latest financial statement	Maximum amount of endorsements/guarantees (Note 3)	Endorsements/guarantees made by the parent for its subsidiaries (Note 7)	Endorsements/guarantees made by subsidiaries for its parent (Note 7)	Endorsements/guarantees made for entities in China (Note 7)	Remark
		Company name	Relations (Note 2)
0	Ruentex Engineering & Construction Co., Ltd.	Ruentex Materials Co., Ltd.	1	$ 1,553,580	$ 88,368	$ 88,368	$ 88,368	$ -	0.97	$ 3,107,160	Y	N	N

Note 1: The column of No. is described as follows:
(1) Please fill in 0 for the issuers.
(2) Please fill in the Arabic numeral sequentially numbered starting from 1 for the invested companies according to the company type.

Note 2: There are 7 types of the relationship between the company making an endorsement/guarantee and the entity for which the endorsement/guarantee as follows. Please indicate the type only:
(1) A company with which the Company does business.
(2) A company in which the Company directly and indirectly holds more than 50% of the voting shares.
(3) A company that directly and indirectly holds more than 50% of the voting shares in the Company.
(4) A company in which the Company holds, directly or indirectly, 90%, or more of the voting shares.
(5) A company fulfills its contractual obligations by providing mutual endorsements/guarantees for another company in the same industry or for joint builders for purposes of undertaking a construction project.
(6) A company in which all capital contributing shareholders make endorsements/guarantees for their jointly invested in proportion to their shareholding percentages.
(7) Companies in the same industry provide among themselves joint and several security for a performance guarantee of a sales contract for pre-construction homes pursuant to the Consumer Protection Act for each other.

Note 3: The maximum amount of endorsements/guarantees made by the Company shall not exceed 100% of the paid-in capital of the Company and the amount of endorsements/guarantees made by the subsidiary for any single entity shall not exceed 50% of the paid-in capital of the Company.

Note 4: The highest balance of the endorsement/guarantee for others in the current year.

Note 5: As of the end of the year, when the company signed the endorsement and guarantee contract with the bank and is approved, the company assumes the endorsement or guarantee responsibilities. Other related endorsements and guarantees shall be included in the balance of the endorsements and guarantees.

Note 6: The actual amount drawn down by the endorsed company within the scope of the balance of the endorsement/guarantee provided.

Note 7: "Y" shall be entered only for the endorsements/guarantees provided by the listed parent company to a subsidiary, a subsidiary to a listed parent company, or the entities in China.

Attached Table 1 Page 1

Ruentex Engineering & Construction Co., Ltd.

Significant marketable securities held at the end of the period (not including subsidiaries, associates and joint ventures)

December 31, 2025

Attached Table 2

Unit: NT$ thousands

(Except as Otherwise Indicated)

Company holding the securities	Type and name of the securities (Note 1)	Relationship with the securities issuer (Note 2)	Account recognized	Shares	End of the period			Remarks (Note 4)
					Carrying amount (Note 3)	Shareholding percentage	Fair value
Ruentex Engineering & Construction Co., Ltd.	Shares of Ruentex Development Co., Ltd.	The Company is a subsidiary of the company.	Financial assets at fair value through other comprehensive income acquired - non-Current	9,713,457	$ 289,462	0.34	$ 289,462
Ruentex Engineering & Construction Co., Ltd.	Shares of Ruentex Industries Ltd.	The investee accounted for under the equity method by the Company's parent.	Financial assets at fair value through other comprehensive income acquired - non-Current	50,241,066	2,768,284	4.55	2,768,284
Ruentex Engineering & Construction Co., Ltd.	Shares of OBI Pharma, Inc.	Substantive related party of the Company	Financial assets at fair value through other comprehensive income acquired - non-Current	291,478	7,870	0.11	7,870	Note 6
Ruentex Engineering & Construction Co., Ltd.	Shares of Save & Safe Corporation	-	Financial assets at fair value through other comprehensive income acquired - non-Current	4,267,233	60,509	2.51	60,509
Ruentex Engineering & Construction Co., Ltd.	Shares of Powertec Electrical Chemicals Corp.	-	Financial assets at fair value through other comprehensive income acquired - non-Current	19,737,629	-	1.39	-
Ruentex Engineering & Construction Co., Ltd.	Subordinated debts of Nan Shan Life Insurance	One of parent company's affiliates is a controlled company of the company.	Financial Assets at amortized cost- non-Current	-	500,000	-	-
Ruentex Materials Co., Ltd.	Shares of Ruentex Industries Ltd.	The investee accounted for under the equity method by the Company's parent.	Financial assets at fair value through other comprehensive income acquired - non-Current	7,200,236	396,733	0.65	396,733
Ruentex Materials Co., Ltd.	Shares of OBI Pharma, Inc.	Substantive related party of the Company	Financial assets at fair value through other comprehensive income acquired - non-Current	131,165	3,541	0.05	3,541
Ruentex Interior Design Inc.	Shares of Ruentex Industries Ltd.	The investee accounted for under the equity method by the Company's parent.	Financial assets at fair value through other comprehensive income acquired - non-Current	2,598,464	143,175	0.24	143,175

Note 1: Securities indicated in the Table refer to shares, bonds, beneficiary certificates and securities derived from the items mentioned above within the scope of IFRS No.9.
Note 2: Not required to be filled in for the issuers of securities that are not related parties.
Note 3: For items measured at fair value, the carrying amount column shall reflect the amount after fair value adjustments. For items not measured at fair value, the carrying amount column shall reflect the original acquisition cost or amortized cost, net of accumulated impairment.
Note 4: The securities listed that are limited to their use due to the provision of security, pledge loans or others in accordance with the contract shall indicate the number of shares provided for guarantee or pledge, the amount of guarantee or pledge and the limits on the use in the in the column of "Remarks".
Note 5: The securities listed in this schedule are determined by the Company based on the principle of materiality.
Note 6: OBI Pharma implemented a capital reduction to offset accumulated deficits. The record date for the capital reduction was November 24, 2025, and the record date for the issuance of new shares following the capital reduction is February 2, 2026.

Attached Table 2 Page 1

Ruentex Engineering & Construction Co., Ltd.

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

For the Years Ended December 31, 2025

Attached Table 3

Unit: NT$ thousands

(Except as Otherwise Indicated)

Transaction conditions							Difference between the terms and conditions of transaction and the general type of transaction and the reason for any such difference (Note 1)		Notes receivable/payable and accounts receivable/payable
The company making the purchase (sale) of goods	Name of counterparty	Relationship	Purchase (sale) of goods	Amount	As a percentage of total purchases (sales) of goods (Note 4)	Credit period	Unit price	Credit period	Balance	As a percentage of notes receivable/payable and accounts receivable/payable (Note 4)
Ruentex Engineering & Construction Co., Ltd.	Ruentex Development Co., Ltd.	The company is a parent of the Company.	Contract of construction	($ 4,044,573)	16.22	The amount shall be collected in accordance with the term of the construction contract	Negotiated price	The amount shall be collected in accordance with the term of the construction contract	$ 731,952	22.20
Ruentex Engineering & Construction Co., Ltd.	Ruentex Materials Co., Ltd.	The company is a subsidiary of the Company.	Purchase of goods	172,780	1.05	Payment is made in accordance with the payment terms specified in the purchase contract.	Negotiated price	Payment is made in accordance with the payment terms specified in the purchase contract.	( 30,143)	0.70
Ruentex Engineering & Construction Co., Ltd.	Ruentex Interior Design Inc.	The company is a sub-subsidiary of the Company.	Contract of construction	( 444,390)	1.78	The amount shall be collected in accordance with the term of the construction contract	Negotiated price	The amount shall be collected in accordance with the term of the construction contract	-	-
Ruentex Engineering & Construction Co., Ltd.	Teh Hsin Enterprise Co., Ltd.	The company is an associates of the Company	Purchase of goods	1,152,561	7.04	Payment is made in accordance with the payment terms specified in the purchase contract.	Negotiated price	Payment is made in accordance with the payment terms specified in the purchase contract.	( 434,203)	10.12
Ruentex Materials Co., Ltd.	Ruentex Engineering & Construction Co., Ltd.	The Company	Project solicitation/service revenue	( 180,572)	3.79	The amount shall be collected in accordance with the term of the construction and sales contract	Negotiated price	The amount shall be collected in accordance with the term of the construction and sales contract	30,655	3.54
Ruentex Interior Design Inc.	Ruentex Development Co., Ltd.	The company is a parent of the Company.	Project solicitation/service revenue/Sales revenue	( 408,296)	16.57	The amount shall be collected in accordance with the term of the construction/services/sales contract	Negotiated price	The amount shall be collected in accordance with the term of the construction/services/sales contract	22,134	4.49
Ruentex Interior Design Inc.	Ruentex Engineering & Construction Co., Ltd.	The Company	Contract of construction	490,280	25.80	Amount paid according to the prescribed period of the construction contract	Negotiated price	Amount paid according to the prescribed period of the construction contract	( 159,566)	15.55

Note 1: If the terms and conditions of transaction with the related parties are different from the general terms and conditions of transaction, the difference and the reason for any such difference shall be specified in the column of unit price and the credit period.
Note 2: In the case of prepayments in advance (or advance receipts), the reasons, the terms and conditions of the contract, the amount and the difference between the general type of transactions shall be specified in the column of Remarks.
Note 3: Paid-in capital refers to the paid-in capital of the parent. In the case of an issuer whose shares have no par value or have a par value other than NT$10, the monetary amount of the transaction of 20% of the paid-in capital shall be calculated at 10% of equity attributable to the owners of the parent as stated in the Balance Sheet.
Note 4: Calculate from the perspective of the entity of the company making the purchase (sale) of goods.

Attached Table 3 Page 1

Attached Table 4
Runetex Engineering & Construction Co., Ltd.
Accounts receivable due from related parties amounting to at least $100 million or 20% of the paid-in capital
December 31, 2025

Attached Table 4
Unit: NT$ thousands
(Except as Otherwise Indicated)
The company recognized as
receivables
Runetex Engineering &
Construction Co., Ltd.	Name of counterparty
Runetex Development Co., Ltd.	Relationship
The Company is a subsidiary
of the company.	Balance of accounts
receivable due from related
parties (Note 1)
$ 731,952	Turnover
7.09 $	Overdue accounts receivable due from
related parties		Recovered amount in
subsequent periods for
accounts receivable due
from related parties
			Amount	Approach to handling	Amount	of loss allowance

Note 1: Please fill in the value separately according the accounts receivable, notes receivable and other receivables.
Note 2: Paid-in capital refers to the paid-in capital of the parent. In the case of an issuer whose shares have no par value or have a par value other than NT$10, the monetary amount of the transaction of 20% of the paid-in capital shall be calculated at 10% of equity attributable to the owners of the parent as stated in the Balance Sheet.

Attached Table 4 Page 1

Ruentex Engineering & Construction Co., Ltd.

Business relationship between the parent and subsidiaries and status of the important transactions

For the Years Ended December 31, 2025

Attached Table 5

Unit: NT$ thousands

(Except as Otherwise Indicated)

No. (Note 1)	Name of the transaction party	Transaction counterparty	Relationship with the counterparty (Note 2)	Account	Amount	Terms and conditions of transaction	As a percentage of the consolidated total operating revenue or total assets (Note 3)
0	Ruentex Engineering & Construction Co., Ltd.	Ruentex Materials Co., Ltd.	1	Service revenue	$ 21,984	Processed based on the general terms and conditions of transaction	0.07%
	Ruentex Engineering & Construction Co., Ltd.	Ruentex Materials Co., Ltd.	1	Construction contract revenue	22,727	Processed based on the general terms and conditions of transaction	0.07%
	Ruentex Engineering & Construction Co., Ltd.	Ruentex Interior Design Inc.	1	Construction contract revenue	444,390	Processed based on the general terms and conditions of transaction	1.41%
1	Ruentex Materials Co., Ltd.	Ruentex Engineering & Construction Co., Ltd.	2	Sales revenue	161,513	Processed based on the general terms and conditions of transaction	0.51%
	Ruentex Materials Co., Ltd.	Ruentex Engineering & Construction Co., Ltd.	2	Construction contract revenue	19,059	Processed based on the general terms and conditions of transaction	0.06%
	Ruentex Materials Co., Ltd.	Ruentex Engineering & Construction Co., Ltd.	2	Receivable	30,655	Processed based on the general terms and conditions of transaction	0.11%
2	Ruen Yang Construction Co., Ltd.	Ruentex Engineering & Construction Co., Ltd.	2	Construction contract revenue	11,465	Processed based on the general terms and conditions of transaction	0.04%
	Ruen Yang Construction Co., Ltd.	Ruentex Materials Co., Ltd.	3	Construction contract revenue	11,896	Processed based on the general terms and conditions of transaction	0.04%
3	Ruentex Interior Design Inc.	Ruentex Engineering & Construction Co., Ltd.	2	Construction contract revenue	14,346	Processed based on the general terms and conditions of transaction	0.05%

Note 1: The information about business transactions between the parent and the subsidiary shall be indicated in the column of No. respectively. Details on how to filled in No. are as follows:
(1) Please fill in "0" for the parent.
(2) Please fill in the Arabic numeral sequentially numbered starting from 1 for the subsidiaries according to the company type.
Note 2: There are three types of the relationship with the transaction party as follows. Please indicate the type only (In the case of the same transaction between the parent or subsidiaries, or between its subsidiaries, duplicate disclosure is not required. For example, in the case of the transaction between the parent or its subsidiary, if the parent has disclosed the information, the subsidiary does not require making a duplicate disclosure;
In the case of the transaction between the subsidiaries, if one of the subsidiaries has disclosed the information, the other subsidiary does not require making a duplicate disclosure.):
(1) Parent and its subsidiary
(2) Subsidiary and its parent
(3) Subsidiary and the other subsidiary
Note 3: The transaction amount as a percentage of the consolidated total operating revenue or total assets shall be calculated at the balance at the end of period as a percentage of the consolidated total assets for assets or liabilities items, and the interim cumulative amount as a percentage of the consolidated total operating revenue for profits or losses items.
Note 4: Transactions amounting to NT$10,000 shall be disclosed. The information shall be also disclosed from the asset side and revenue side.

Attached Table 5 Page 1

Ruentex Engineering & Construction Co., Ltd.

The name of the invested company, the location and other relevant information (excluding the invested companies in China)

For the Years Ended December 31, 2025

Attached Table 6

Unit: NT$ thousands

(Except as Otherwise Indicated)

Name of the investing company	Name of the investee company (Notes 1 and 2)	Location	Main business items	Original investment amount		Holding at the end of period			Profit or loss of the investee for the period (Note 2(2))	Investment gains and losses recognized in the current period (Note 2(3))	Remark Subsidiary of the Company
				End of the current period	End of last year	Shares	Percentage	Carrying amount
Ruentex Engineering & Construction Co., Ltd.	Ruentex Materials Co., Ltd.	Taiwan	Building materials production and distribution	$ 695,548	$ 695,548	58,726,917	39.15	$ 915,871	$ 277,969	$ 108,829
Ruentex Engineering & Construction Co., Ltd.	Ruentex Interior Design Inc.	Taiwan	Design and Construction of Interior Decoration, Gardens, and Greenery	82,365	82,365	2,745,483	18.30	166,953	291,240	53,308	Sub-subsidiary of the Company
Ruentex Engineering & Construction Co., Ltd.	Ruen Yang Construction Co., Ltd.	Taiwan	Civil Engineering Projects	5,408	5,408	600,000	100.00	4,994	292	( 1,260)	Subsidiary of the Company
Ruentex Materials Co., Ltd.	Ruentex Interior Design Inc.	Taiwan	Design and Construction of Interior Decoration, Gardens, and Greenery	126,721	126,721	4,750,000	31.66	288,848	291,240	92,226	Sub-subsidiary of the Company
Ruentex Materials Co., Ltd.	Teh Hsin Enterprise Co., Ltd.	Taiwan	Construction materials manufacturing	1,564,348	1,564,348	14,969,837	35.00	1,707,545	501,386	175,491	Associates

Note 1: For public companies with an overseas holding company and a consolidated financial report as its principal financial report according to the local laws and regulations must disclose only related information to that holding company, which is an overseas investee.
Note 2: Those who do not fall under the circumstances described in Note 1 shall be filled in according to the following rules:
(1) The columns of "Investee," "Location," "Main business items," "Original investment amount" and "Ownership, end of the period" shall be filled out based on the (public) Company's investment status and the investment situation of each investee directly or indirectly controlled in order, and the relationship between each investee and the (public) Company (e.g., a subsidiary or a sub-subsidiary) shall be indicated in the remarks column.
(2) In the column "Current profit or loss on investee," the amount of current profit or loss on each investee shall be entered.
(3) In the column "Investment gains and losses recognized in the current period," only the amount of profit or loss on each subsidiary recognized by the (public) Company as direct investment and on each investee accounted for using the equity method shall be entered, and the rest is not required to be entered. When filling in the "Recognized amount of current profit or loss on each subsidiary directly invested," it shall be confirmed that the amount of the current profit or loss on each subsidiary has included the investment gains and losses that shall be recognized in accordance with the regulations for its investment.

Attached Table 6 Page 1

Statement 1 Page 1

Ruentex Engineering & Construction Co., Ltd.
Statement of cash and cash equivalents
December 31, 2025

Statement 1		Unit: NT$ thousands
Item	Summary	Amount
Cash on hand and revolving funds		$ 4,140
Checking deposits		372,427
Demand deposits		548,499
Time deposits	Period: December 10, 2025 – January 10, 2026	120,000
	Interest rate: 1.55–1.56%
Cash equivalents - Bonds under repurchase agreements	Period: December 30, 2025 – January 5, 2026	169,615
	Interest rate: 0.77%
		$ 1,214,681

Statement 2 Page 1

Ruentex Engineering & Construction Co., Ltd.
Accounts Receivable Statement
December 31, 2025

Statement 2
Unit: NT$ thousands

Customer name	Amount	Remark
Sheng Yi Fa Construction & Engineering Co., Ltd.	$ 529,427
LITEON Technology Co., Ltd.	402,532
Great Honor Asset Management Co., Ltd.	304,000
National Housing and Urban Regeneration Center	193,504
DA CIN Construction Co., Ltd.	140,930
United Integrated Services Co., Ltd.	139,202
Exyte Taiwan Co., Ltd. (Singapore)	111,772
Other minor customers	390,456	The balance of each minor customer does not exceed 5% of the balance of this account.
	2,211,823
Less: Allowance for loss	( 415)
	$ 2,211,408

Ruentex Engineering & Construction Co., Ltd.
Statement of Changes in Construction in Progress
For the Years Ended December 31, 2025

Statement 3
Unit: NT$ thousands

Construction site name	Beginning balance	Construction costs	Construction profit (loss)	Transfer out upon completion	Ending balance
1118	$ 4,598,445	$ 619,643	$ 59,260	$ -	$ 5,277,348
1914	917,260	87,712	9,463	( 1,014,435)	-
2003	1,095,805	37,520	1,386	( 1,134,711)	-
2004	3,077,154	430,916	47,875	-	3,555,945
2006	3,155,928	571	158	-	3,156,657
2018	3,293,756	19,974	( 25,450)	( 3,288,280)	-
2019	1,125,663	1,533,810	155,379	-	2,814,852
2026	1,186,330	52,242	( 55,893)	( 1,182,679)	-
2102	929,505	817,750	81,775	-	1,829,030
2103	1,565,819	145,014	( 47,858)	( 1,662,975)	-
2111	827,856	257	78	-	828,191
2112	1,315,102	896	984	( 1,316,982)	-
2118	203,426	2,106	9,677	-	215,209
2201	3,396,335	135,744	249,334	-	3,781,413
2210	2,631,469	39,220	8,384	-	2,679,073
2211	364,930	415,796	46,195	-	826,921
2213	340,003	51,134	3,068	( 394,205)	-
2215	228,258	110,066	57,470	-	395,794
2216	934,578	71,332	76,278	-	1,082,188
2218	79,499	438,202	59,947	-	577,648
2219	2,371,141	628,013	305,097	-	3,304,251
2221	1,185,256	175,158	35,855	-	1,396,269
2222	1,519,041	1,640,683	261,008	-	3,420,732
2223	1,427,330	162	( 5,308)	-	1,422,184
2225	925,356	6,378	( 6,916)	( 924,818)	-

Statement 3 Page 1

Ruentex Engineering & Construction Co., Ltd.
Statement of Changes in Construction in Progress (continued)
For the Years Ended December 31, 2025

Statement 3
Unit: NT$ thousands

Construction site name	Beginning balance	Construction costs	Construction profit (loss)	Transfer out upon completion	Ending balance
2226	$ 460,749	$ 100	($ 45,470)	($ 415,379)	$ -
2305	879,634	1,457,366	173,938	-	2,510,938
2306	126,503	239,439	32,127	-	398,069
2307	150,828	835,498	87,035	-	1,073,361
2312	589,465	3,722	31,030	-	624,217
2315	925,227	25,640	4,584	-	955,451
2316	307,078	8,834	49,369	-	365,281
2401	1,754,179	4,916	6,624	-	1,765,719
2405	232,472	80,109	37,148	-	349,729
2406	465,557	382,821	226,497	-	1,074,875
2407	228,501	498,856	73,356	-	800,713
2413	33,783	130,882	42,574	-	207,239
2415	10,752	282,163	40,211	-	333,126
2417	89,796	551,205	55,151	-	696,152
2420	208,098	744,897	263,710	-	1,216,705
2421	5,199	389,051	42,830	-	437,080
2422	11,667	332,491	36,711	-	380,869
2423	76,830	353,039	188,095	-	617,964
2425	19,638	283,877	68,271	-	371,786
2426	5,052	389,426	54,964	-	449,442
2429	6,641	636,706	710,119	-	1,353,466
2501	-	721,382	149,715	-	871,097
2502	-	251,241	51,636	-	302,877
2503	-	703,736	130,095	-	833,831
2506	-	344,859	58,250	-	403,109
2507	-	592,302	87,974	-	680,276

Statement 3 Page 2

Ruentex Engineering & Construction Co., Ltd.
Statement of Changes in Construction in Progress (continued)
For the Years Ended December 31, 2025

Statement 3
Unit: NT$ thousands

Construction site name	Beginning balance	Construction costs	Construction profit (loss)	Transfer out upon completion	Ending balance
2508	$ -	$ 205,256	$ 62,767	$ -	$ 268,023
2512	-	290,910	44,125	-	335,035
2514	-	650,139	97,491	-	747,630
2522	-	432,447	64,867	-	497,314
1904 and so on	659,695	1,095,499	274,022	( 369,829)	1,659,387
Total construction in progress	$ 45,942,589	$ 20,379,108	$ 4,527,062	($ 11,704,293)	$ 59,144,466
				Contract assets recognized :	$ 29,763,657
				recognized as a deduction from contract liabilities:	$ 29,380,809

Note: Construction projects with beginning or ending balances exceeding $200,000 are disclosed individually.

Statement 3 Page 3

Statement 4 Page 1

Ruentex Engineering & Construction Co., Ltd.
Statement of prepayments
December 31, 2025

Statement 4
Unit: NT$ thousands

Item	Amount	Remark
Prepayment for purchases	$ 705,309
Overpaid sales tax	23,510
Prepaid rent	17,675
Other prepayments	39,384
	$ 785,878

Statement 5 Page 1

Ruentex Engineering & Construction Co., Ltd.
Statement of other current assets
December 31, 2025

Statement 5
Unit: NT$ thousands

Item	Summary	Amount	Remark
Construction contracts and performance bonds		$ 123,197
Refundable deposits		31,577
Others		13,219
		$ 167,993

Statement 6
Ruentex Engineering & Construction Co., Ltd.
Statement of Changes in Financial Assets at Fair Value Through Other Comprehensive Income Acquired – Non-current
For the Years Ended December 31, 2025
Unit: NT$ thousands

Name	Beginning balance		Increase during the period		Decrease during the period		Ending balance		Status of providing collateral or pledge
	Number of shares	Fair value	Number of shares	Amount	Number of shares	Amount	Number of shares	Fair value	collateral or pledge	Remark
Ruentex Development Co., Ltd.	9,713,457	$ 416,707	-	$ -	-	($ 127,245)	9,713,457	$ 289,462	None	Note 1
Ruentex Industries Ltd.	50,241,066	3,637,454	-	-	-	( 869,170)	50,241,066	2,768,284	None	Note 2
OBI Pharma, Inc.	291,478	17,051	-	-	-	( 9,181)	291,478	7,870	None	Note 3
Powertec Electrical Chemicals Corp.	19,737,629	-	-	-	-	-	19,737,629	-	None
SAVE & SAFE CORPORATION	4,267,233	73,012	-	-	-	( 12,503)	4,267,233	60,509	None	Note 4
		$ 4,144,224		$ -		($ 1,018,099)		$ 3,126,125

Note 1: The decrease in the period was mainly due to changes arising from fair value measurement losses of $127,245.
Note 2: The decrease in the period was mainly due to changes arising from fair value measurement losses of $869,170.
Note 3: The decrease in the period was mainly due to changes arising from fair value measurement losses of $9,181. Moreover, OBI Pharma implemented a capital reduction to offset 50% of the accumulated deficits. The record date for the capital reduction was November 24, 2025, and the record date for the issuance of new shares following the capital reduction is February 2, 2026.
Note 4: The decrease in the period was mainly due to changes arising from fair value measurement losses of $12,503.

Statement 6 Page 1

Statement 7 Page 1

Ruentex Engineering & Construction Co., Ltd.
Statement of Changes in Amortized Cost Financial Assets – Non-Current
For the Years Ended December 31, 2025

Statement 7								Unit: NT$ thousands
	Beginning		Increase during the period		Decrease during the period		End of the period		Status of providing collateral or pledge
	Quantity	Carrying amount	Quantity	Amount	Quantity	Amount	Quantity	Carrying amount
Name
Subordinated corporate bonds	500	$ 500,000	-	$ -	-	$ -	500	$ 500,000	None

Statement 8
Page 1

Ruentex Engineering & Construction Co., Ltd.
Statement of Changes in Investments Accounted for Using Equity Method
For the Years Ended December 31, 2025
Unit: NT$ thousands

Name	Beginning balance		Increase during the period (Note 1)		Decrease during the period (Note 2)		Ending balance		Market price or net asset value		Status of providing collateral or
	Number of shares	Amount	Number of shares	Amount	Number of shares	Amount	Number of shares	Shareholding percentage	Amount	Unit price ($)	Total price (Note 3)	pledge
Ruentex Materials Co., Ltd. (Ruentex Materials)	58,726,917	$ 928,888	-	$ 109,936	-	($ 122,953)	58,726,917	39.15%	$ 915,871	$ 26.65	$ 1,565,072	None
Ruentex Interior Design Inc. (Ruentex Interior Design)	2,745,483	162,213	-	53,308	-	( 48,568)	2,745,483	18.30%	166,953	228.00	625,970	None
Ruen Yang Construction Co., Ltd. (Ruen Yang)	600,000	6,254	-	-	-	( 1,260)	600,000	100.00%	4,994	10.91	6,546	None
		$ 1,097,355		$ 163,244		($ 172,781)			$ 1,087,818		$ 2,197,588

Note 1: Represents the share of profit recognized under the equity method and the realization in the current period of unrealized gross profit from transactions with affiliates.
Note 2: Represents the share of loss recognized under the equity method, cash dividends received, unrealized gross profit from transactions with affiliates, and other changes.
Note 3: Ruentex Materials and Ruentex are measured based on market price; Ruen Yang is measured based on net asset value. The difference between the ending balance and the net asset value represents unrealized gross profit.

Ruentex Engineering & Construction Co., Ltd.
Statement of Changes in Property, Plant, and Equipment
For the Years Ended December 31, 2025

Statement 9
Unit: NT$ thousands

Item	Beginning balance	Increase during the period	Decrease during the period	Transfers for the current period	Ending balance	Status of assets pledged as collateral
Cost
Buildings and structures	$ 265,534	$ 470	$ -	$ -	$ 266,004	None
Machinery and equipment	500,449	169,257	( 6,356)	75,917	739,267	”
Transportation equipment	30,760	2,694	( 6,256)	-	27,198	”
Office equipment	108,686	12,659	( 3,060)	-	118,285	”
Leasehold improvements	77,843	15,770	( 3,110)	4,393	94,896	”
Miscellaneous equipment	235,842	91,434	( 25,223)	123,442	425,495	”
Construction in progress	5,844	50,110	-	( 55,954)	-
	1,224,958	$ 342,394	($ 44,005)	$ 147,798	1,671,145
Accumulated depreciation
Buildings and structures	( 163,058)	($ 6,528)	$ -	$ -	( 169,586)
Machinery and equipment	( 414,804)	( 43,835)	6,356	-	( 452,283)
Transportation equipment	( 22,308)	( 2,881)	6,256	-	( 18,933)
Office equipment	( 76,193)	( 13,175)	3,034	-	( 86,334)
Leasehold improvements	( 26,258)	( 7,670)	3,110	-	( 30,818)
Miscellaneous equipment	( 137,194)	( 41,056)	25,223	-	( 153,027)
	( 839,815)	($ 115,145)	$ 43,979	$ -	( 910,981)
Carrying amount	$ 385,143				$ 760,164

Note: For the depreciation methods and useful lives of property, plant and equipment, please refer to Note 4(13).

Statement 9 Page 1

Statement 10
Ruentex Engineering & Construction Co., Ltd.
Statement of Changes in Right-of-use Assets
For the Years Ended December 31, 2025
Unit: NT$ thousands

Item	Beginning balance	Increase during the period (Note)	Decrease during the period (Note)	Ending balance
Cost:
Land	$ 1,049,410	$ 59,174	($ 13,212)	$ 1,095,372
Buildings	148,425	-	-	148,425
Transportation equipment	5,169	297	( 750)	4,716
	1,203,004	59,471	( 13,962)	1,248,513
Accumulated depreciation
Land	( 132,633)	( 71,732)	13,212	( 191,153)
Buildings	( 108,244)	( 30,136)	-	( 138,380)
Transportation equipment	( 2,458)	( 1,817)	542	( 3,733)
	( 243,335)	( 103,685)	13,754	( 333,266)
Carrying amount	$ 959,669	($ 44,214)	($ 208)	$ 915,247

Note: The increases and decreases for the current period include changes arising from additions and lease modifications.

Statement 10 Page 1

Statement 11 Page 1

Ruentex Engineering & Construction Co., Ltd.
Statement of Notes Payable
December 31, 2025

Statement 11
Unit: NT$ thousands

Company name	Amount	Remark
Tone Chime Enterprise Ltd.	$ 99,437
Usesense-tech Co., Ltd.	68,846
Tah Chung Steel Corporation	56,478
Other minor customers	613,914	The balance of each minor customer does not exceed 5% of the balance of this account.
	$ 838,675

Statement 12 Page 1

Ruentex Engineering & Construction Co., Ltd.
Statement of Accounts Payable
December 31, 2025

Statement 12
Unit: NT$ thousands

Company name	Amount	Remark
Chun Yuan Steel Co., Ltd.	$ 502,489
Other minor customers	2,470,034	The balance of each minor customer does not exceed 5% of the balance of this account.
	$ 2,972,523

Ruentex Engineering & Construction Co., Ltd.
Statement of Changes in Advances from Construction Contracts
For the Years Ended December 31, 2025

Statement 13
Unit: NT$ thousands

Construction site name	Beginning balance	Increase during the period	Decrease during the period	Ending balance
1118	$ 4,413,884	$ 357,886	$ -	$ 4,771,770
1914	801,519	212,916	( 1,014,435)	-
2003	950,621	184,090	( 1,134,711)	-
2004	2,851,091	401,968	-	3,253,059
2006	3,160,041	-	-	3,160,041
2018	3,254,782	33,498	( 3,288,280)	-
2019	1,278,848	1,833,319	-	3,112,167
2026	1,123,027	59,652	( 1,182,679)	-
2102	1,105,580	785,840	-	1,891,420
2103	1,376,571	286,404	( 1,662,975)	-
2111	740,082	86,256	-	826,338
2112	1,317,140	( 158)	( 1,316,982)	-
2118	194,080	22,762	-	216,842
2201	3,219,031	457,683	-	3,676,714
2210	2,616,197	39,831	-	2,656,028
2211	334,640	458,213	-	792,853
2213	334,246	59,959	( 394,205)	-
2215	279,521	186,308	-	465,829
2216	1,078,741	86,859	-	1,165,600
2218	-	526,862	-	526,862
2219	2,175,784	1,193,443	-	3,369,227
2221	1,204,477	204,886	-	1,409,363
2222	1,432,431	1,320,614	-	2,753,045
2223	1,428,764	-	-	1,428,764
2225	910,026	14,792	( 924,818)	-

Statement 13 Page 1

Ruentex Engineering & Construction Co., Ltd.
Statement of Changes in Advances from Construction Contracts (Continued)
For the Years Ended December 31, 2025

Statement 13
Unit: NT$ thousands

Construction site name	Beginning balance	Increase during the period	Decrease during the period	Ending balance
2226	$ 370,292	$ 45,087	($ 415,379)	$ -
2305	1,214,778	1,198,517	-	2,413,295
2306	137,788	312,010	-	449,798
2307	338,363	800,788	-	1,139,151
2312	570,467	19,575	-	590,042
2315	761,600	174,201	-	935,801
2316	360,301	-	-	360,301
2401	1,740,855	47,564	-	1,788,419
2405	233,349	116,381	-	349,730
2406	639,076	435,799	-	1,074,875
2407	224,964	732,785	-	957,749
2413	36,375	194,000	-	230,375
2415	405,000	-	-	405,000
2417	162,888	386,170	-	549,058
2420	-	1,239,749	-	1,239,749
2421	-	549,655	-	549,655
2422	-	607,534	-	607,534
2423	-	591,931	-	591,931
2425	55,000	415,290	-	470,290
2426	-	330,715	-	330,715
2429	-	1,353,466	-	1,353,466
2501	-	941,595	-	941,595
2502	-	340,780	-	340,780
2503	-	958,292	-	958,292
2506	-	468,055	-	468,055
2507	-	697,328	-	697,328

Statement 13 Page 2

Statement 13 Page 3

Ruentex Engineering & Construction Co., Ltd.
Statement of Changes in Advances from Construction Contracts (Continued)
For the Years Ended December 31, 2025

Statement 13
Unit: NT$ thousands

Construction site name	Beginning balance	Increase during the period	Decrease during the period	Ending balance
2508	$ -	$ 300,009	$ -	$ 300,009
2514	-	369,264	-	369,264
2525	-	305,523	-	305,523
1904 and so on	480,734	1,391,424	( 369,829)	1,502,329
Total advance receipts from construction contracts	$ 45,312,954	$ 24,137,370	($ 11,704,293)	$ 57,746,031
			Contract liabilities recognized:	$ 31,670,240
			Deduction from contract assets recognized:	$ 26,075,791

Note: Construction projects with beginning or ending balances exceeding $200,000 are disclosed individually.

Statement 14 Page 1

Ruentex Engineering & Construction Co., Ltd.
Statement of other non-current liabilities
December 31, 2025

Statement 14
Unit: NT$ thousands

Item	Summary	Amount	Remark
Accrued pension liabilities		$ 67,954
Provisions		162,166
Guarantee deposits received		37,777
		$ 267,897

Statement 15
Page 1

Ruentex Engineering & Construction Co., Ltd.
Operation Income Statement
For the Years Ended December 31, 2025

Statement 15
Unit: NT$ thousands

Item	Summary	Amount	Remark
Revenue from construction contracts		$ 24,898,441
Service contract revenue		29,712
		$ 24,928,153

Statement 16
Page 1

Ruentex Engineering & Construction Co., Ltd.

Operation Cost Statement

For the Years Ended December 31, 2025

Item		Amount
Cost of goods sold		Subtotal	Total
Beginning inventory		$ 22,026
Add:	Purchases during the period	1,049,301
Less:	Ending inventory	( 23,754)
	Transferred to construction costs	( 618,221)
	Transferred to manufacturing, selling, general and administrative, and research and development expenses	( 3,786)
Raw materials consumed during the period		425,566
Direct labor (included in wages and salaries: $155,058)		203,358
Manufacturing overhead		327,441
Cost of finished goods		956,365
Less:	Transferred to construction costs	( 937,446)
	Transferred to processing costs (service costs)	( 18,919)
Total cost of goods sold			$ -
Construction costs
Purchases during the period (including raw materials and transfers from finished goods of $1,555,667)		16,887,983
Construction labor		1,959,478
Construction cost		1,531,647
Construction costs incurred during the period		20,379,108
Add:	Beginning construction in progress	45,942,589
	Construction profit recognized under the percentage-of-completion method for the period	4,527,062
Less:	Ending construction in progress	( 59,144,466)
	Transfers out upon completion under the percentage-of-completion method	( 11,704,293)
	Revenue from sales of scraps	( 28,760)
	Loss on market value decline of inventory	1,181
	Transferred to service costs	( 1,248)
	Construction costs recognized under the percentage-of-completion method for the period	20,379,108
Add:	Total construction costs		20,350,281
Service costs (including transfers from finished goods of $18,919 and from construction costs of $1,248)			20,167
Total operating costs			$ 20,370,448

Statement 17 Page 1

Ruentex Engineering & Construction Co., Ltd.
Statement of Manufacturing Overhead
For the Years Ended December 31, 2025

Statement 17
Unit: NT$ thousands

Account	Amount	Remark
Payroll expense	$ 137,125
Depreciation expense	95,702
Others	94,614	Each minor expense is no more than 5% of the total expense.
	$ 327,441

Statement 18
Quotient
1

| Statement 18 | Ruentex Engineering & Construction Co., Ltd.
Statement of Construction Costs
For the Years Ended December 31, 2025 | | Unit: NT$ thousands |
| --- | --- | --- | --- |
| Account | Amount | Remark | |
| Payroll expense | $ 951,290 | | |
| Rental expense | 131,240 | | |
| Freight expense | 115,084 | | |
| Others | 334,033 | Each minor expense is no more than 5% of the total expense. | |
| | $ 1,531,647 | | |

Statement 18 Page 1

Statement 19 Page 1

| Statement 19 | Ruentex Engineering & Construction Co., Ltd.
Statement of Selling Expenses
For the Years Ended December 31, 2025 | |
| --- | --- | --- |
| Account | Amount | Remark |
| Payroll expense | $ 57,408 | |
| Taxes | 34,318 | |
| Others | 6,762 | Each minor expense is
no more than 5% of
the total expense. |
| | $ 98,488 | |

Statement 20 Page 1

| Statement 20 | Ruentex Engineering & Construction Co., Ltd.
Statement of General and Administrative Expenses
For the Years Ended December 31, 2025 | | Unit: NT$ thousands |
| --- | --- | --- | --- |
| Account | Amount | Remark | |
| Payroll expense | $ 490,732 | | |
| Depreciation expense | 38,771 | | |
| Insurance premium | 38,291 | | |
| Others | 113,481 | Each minor expense is
no more than 5% of the
total expense. | |
| | $ 681,275 | | |

Statement 21
Quotation

Ruentex Engineering & Construction Co., Ltd.
Statement of Research and Development Expenses
For the Years Ended December 31, 2025
Unit: NT$ thousands

Account	Amount	Remark
Payroll expense	$ 20,473
Amortization	2,402
Outsourced research expenses	2,132
Others	7,367	Each minor expense is no more than 5% of the total expense.
	$ 32,374

Statement 21 Page 1

Ruentex Engineering & Construction Co., Ltd.
Summary statement of employee benefits, depreciation, and amortization expenses by function incurred during the period (continued)
For the Years Ended December 31, 2025

Statement 22
Unit: NT$ thousands

| By function
By nature | 2025 | | | 2024 | | |
| --- | --- | --- | --- | --- | --- | --- |
| | Attributed to operating costs | Attributed to operating expenses | Total | Attributed to operating costs | Attributed to operating expenses | Total |
| Personnel expenses | | | | | | |
| Wages and salaries | $ 1,243,473 | $ 568,613 | $ 1,812,086 | $ 929,889 | $ 498,562 | $ 1,428,451 |
| Labor and Health Insurance costs | 73,847 | 34,957 | 108,804 | 60,726 | 31,973 | 92,699 |
| Pension expense | 31,145 | 14,659 | 45,804 | 28,728 | 14,558 | 43,286 |
| Directors’ Remuneration | - | 4,076 | 4,076 | | 3,956 | 3,956 |
| Other employee benefits expenses | 41,245 | 41,385 | 82,630 | 32,279 | 36,667 | 68,946 |
| Depreciation expense | 179,823 | 39,007 | 218,830 | 136,466 | 38,404 | 174,870 |
| Amortization | 498 | 3,855 | 4,353 | 294 | 3,844 | 4,138 |

Notes:

The number of employees in the current and prior years was 1,419 and 1,105, respectively. The number of directors not concurrently serving as employees in both the current and prior years was 7.
Companies whose shares are listed on Taiwan Stock Exchange or traded Taipei Exchange shall additionally disclose the following information:
(1) The average employee welfare expenses for the current year were $1,451 (total employee welfare expenses for the current year - total directors' remuneration / [number of employees in the current year - number of directors not concurrently serving as employees]).
The average employee welfare expenses for the prior year were $1,488 (total employee welfare expenses for the prior year - total directors' remuneration / [number of employees in the prior year - number of directors not concurrently serving as employees]).

Statement 22 Page 2

Statement 22

Unit: NT$ thousands

(2) The average employee salary expenses for the current year were $1,283 (total salary expenses for the current year / [number of employees in the current year - number of directors not concurrently serving as employees]).
The average employee salary expenses for the prior year were $1,301 (total salary expenses for the prior year / [number of employees in the prior year - number of directors not concurrently serving as employees]).
(3) The change in average employee salary expenses was (1.38%) ([average employee salary expenses for the current year – average employee salary expenses for the prior year] / average employee salary expenses for the prior year).
(4) The Company’s remuneration policy

A. Directors’ remuneration policy:
The Company’s directors’ remuneration is primarily governed by the relevant provisions set forth in the Company’s Articles of Incorporation. Directors’ remuneration is authorized by the Board of Directors and determined based on their level of participation in the Company’s operations and their contributions, with reference to industry standards. The Remuneration Committee provides recommendations, which are then submitted to the Board of Directors for deliberation.

B. Manager remuneration policy:
The Company’s managerial remuneration shall be determined with reference to prevailing industry standards, taking into consideration individual performance evaluation results, time devoted, responsibilities assumed, achievement of individual objectives, performance in other positions, and remuneration granted to individuals in comparable positions in recent years. It shall also consider the reasonableness of the linkage between individual performance, the Company’s operating performance, and future risks, based on the achievement of the Company’s short- and long-term business objectives and its financial condition. Recommendations are made by the Remuneration Committee and subsequently submitted to the Board of Directors for deliberation.

C. Employee remuneration policy:
In accordance with the Company’s “Salary Administration Regulations” and relevant policies governing bonuses and allowances, employee compensation, remuneration, and benefits are determined in compliance with labor laws and regulations. These mainly include base salary (including basic pay and meal allowance), position allowances, professional allowances, performance bonuses, annual salary adjustments based on individual performance, and year-end bonuses. In addition, in accordance with the relevant provisions of the Company’s Articles of Incorporation, if the Company records a profit for the year, at least 1% shall be appropriated as employee remuneration, of which no less than 40% of the total employee remuneration shall be allocated to non-managerial employees. However, if the Company has accumulated losses, an amount shall first be reserved to cover such losses in order to appropriately reflect operating performance in employee remuneration.

Statement 22 Page 3

AI assistant

REC Audit Report / Information 2025

52156_rns_2026-04-09_fe49bb03-7d49-45f7-8a1c-b7ea9960b641.pdf

Opinion

Basis for Opinion

Key audit matters

Recognition of Construction Contract Revenue – Assessment of Percentage of Completion

Description of the matter

Corresponding audit procedures

Accuracy of timing in recognition of construction costs

Description of the matter

Corresponding audit procedures

Responsibilities of management and those charged with governance for the parent company only financial statements

Auditors’ responsibilities for the audit of the parent company only financial statements

IV. Summary of significant accounting policies

(I) Compliance statement

(II) Basis of preparation

(III) Foreign currency translation

VI. Details of Significant Accounts

(I) Cash and cash equivalents

(II) Notes and accounts receivable

3. Receivables from related parties

4. Payables to related parties

5. Incomplete work of construction contracting and advance Construction Receipts

6. Interest revenue

7. Lease transactions - lessees/rent expenses

2. Risk management policies

3. Significant financial risks and degrees of financial risks

(1) Market risk

Price risk

(3) Liquidity risk

(III) Fair value information

XIII. Separately Disclosed Items

Ruentex Engineering & Construction Co., Ltd.

Operation Cost Statement

AI assistant

REC — Audit Report / Information 2025

52156_rns_2026-04-09_fe49bb03-7d49-45f7-8a1c-b7ea9960b641.pdf

Opinion

Basis for Opinion

Key audit matters

Recognition of Construction Contract Revenue – Assessment of Percentage of Completion

Description of the matter

Corresponding audit procedures

Accuracy of timing in recognition of construction costs

Description of the matter

Corresponding audit procedures

Responsibilities of management and those charged with governance for the parent company only financial statements

Auditors’ responsibilities for the audit of the parent company only financial statements

IV. Summary of significant accounting policies

(I) Compliance statement

(II) Basis of preparation

(III) Foreign currency translation

VI. Details of Significant Accounts

(I) Cash and cash equivalents

(II) Notes and accounts receivable

3. Receivables from related parties

4. Payables to related parties

5. Incomplete work of construction contracting and advance Construction Receipts

6. Interest revenue

7. Lease transactions - lessees/rent expenses

2. Risk management policies

3. Significant financial risks and degrees of financial risks

(1) Market risk

Price risk

(3) Liquidity risk

(III) Fair value information

XIII. Separately Disclosed Items

Ruentex Engineering & Construction Co., Ltd.

Operation Cost Statement

More from REC

REC Audit Report / Information 2025