S.C.P.C — Audit Report / Information 2024

Nov 11, 2024

STANDARD CHEM. & PHARM. CO., LTD. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS’ REPORT DECEMBER 31, 2024 AND 2023

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

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STANDARD CHEM. & PHARM. CO., LTD. AND SUBSIDIARIES Declaration of Consolidated Financial Statements of Affiliated Enterprises

For the year ended December 31, 2024 pursuant to Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises, the entities that are required to be included in the consolidated financial statements of affiliates, are the same as those required to be included in the consolidated financial statements under International Financial Reporting Standards No.10. And if relevant information that should be disclosed in the consolidated financial statements of affiliates has all been disclosed in the consolidated financial statements of parent and subsidiary companies, it shall not be required to prepare consolidated financial statements of affiliates.

Hereby declare

STANDARD CHEM. & PHARM. CO., LTD. February 25, 2025

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INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

To the Board of Directors and Shareholders of STANDARD CHEM. & PHARM. CO., LTD.

Opinion

We have audited the accompanying consolidated balance sheets of STANDARD CHEM. & PHARM. CO., LTD. and its subsidiaries (collectively referred herein as the “Group”) as of December 31, 2024 and 2023, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of material accounting policies.

In our opinion, based on our audits and reports of other auditors (refer to Other matter section), the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2024 and 2023, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect as endorsed by the Financial Supervisory Commission.

Basis for opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ responsibilities for the audit of the consolidated financial statements section of our report. We are independent of the Group in accordance

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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. Based on our audits and the reports of other auditors, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Group’s 2024 consolidated financial statements. These matters were addressed in the context of our audit of the consolidated financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

Key audit matter of the Group’s 2024 consolidated financial statements is stated as follows:

Existence of domestic sales revenue from human medicines and dietary supplements

Description

Refer to Note 4(27) for accounting policies on revenue recognition. Revenue is recognised when control of the products has transferred, being when the products are delivered to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products.

The Group is primarily engaged in the manufacturing and sales of human medicines and dietary supplements. The Group’s sales is mainly domestic-based and its customers are numerous, including hospitals, clinics, pharmacies, food and drug administrations all over the country. Since the sales transactions are numerous and would require a longer period for verification, we considered the existence of domestic sales revenue from human medicines and dietary supplements a key audit matter.

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How our audit addressed the matter

We performed the following key audit procedures for the above matter:

1. Assessed the consistency and effectiveness of internal control relevant to sales revenue recognition.

2. Assessed basic information of the major customers, including the details of the chairman and major shareholders, registered address, principal place of business, capital and main business activities, etc.

3. Selected samples of sales transactions and checked against related supporting documentation, including unit prices, quantities, reasonableness of sales allowance recognition, waybill and subsequent cash collection.

Other matter – Reference to the audits of other auditors

We did not audit the financial statements of certain investments accounted for under equity method which were audited by other auditors. Therefore, our opinion expressed herein, insofar as it relates to the amounts included in respect of these associates, is based solely on the reports of the other auditors. The balance of these investments accounted for under equity method amounted to $389,749 thousand and $243,423 thousand, constituting 3.49% and 2.18% of the consolidated total assets as of December 31, 2024 and 2023, respectively, and the share of comprehensive income of associates and joint ventures accounted for under equity method amounted to ($6,775) thousand and $4,639 thousand, constituting (0.47%) and 0.35% of the consolidated total comprehensive income for the years then ended, respectively.

Other matter – Parent company only financial reports

We have audited and expressed an unmodified opinion with other matter paragraph on the parent company only financial statements of STANDARD CHEM. & PHARM. CO., LTD. as of and for the years ended December 31, 2024 and 2023.

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Responsibilities of management and those charged with governance for the consolidated financial statements

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

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

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

Auditors’ responsibilities for the audit of the consolidated financial statements

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

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

1. Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

2. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.

3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

4. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Group to cease to continue as a going concern.

5. Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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1. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

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

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

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

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Tien, Chung-Yu

Independent Accountants

Yeh, Fang-Ting

PricewaterhouseCoopers, Taiwan

Republic of China. February 25, 2025

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The accompanying consolidated financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying consolidated financial statements and independent auditors’ report are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

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STANDARD CHEM. & PHARM. CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2024 AND 2023

(Expressed in thousands of New Taiwan Dollars)

Assets	Notes 6(1) 5(2) and 6(2) 6(1) and 8 6(4), 7 and 12 6(4), 7 and 12 6(5) and 7 6(27) 5(2), 6(6)(8) 5(2) and 6(2) 5(2) and 6(3) 6(7) and 7 6(8) and 8 6(9) and 7 6(10)(11) 6(27) 6(8) 6(15)	December 31, 2024 AMOUNT % $ 1,520,128 14 157,360 2 134,500 1 283,688 3 1,039,155 9 16,567 - 720 - 1,720,381 15 126,905 1 2,488 - 5,001,892 45 11,267 - 508,242 5 688,452 6 4,128,811 37 260,641 2 207,731 2 132,264 1 159,487 2 28,783 - 47,975 - 6,173,653 55 $ 11,175,545 100	December 31, 2023	December 31, 2023
		AMOUNT $ 1,520,128 157,360 134,500 283,688 1,039,155 16,567 720 1,720,381 126,905 2,488 5,001,892 11,267 508,242 688,452 4,128,811 260,641 207,731 132,264 159,487 28,783 47,975 6,173,653 $ 11,175,545	AMOUNT $ 2,036,743 178,290 60,500 286,544 976,208 155,671 172 1,614,976 103,089 5,563 5,417,756 16,605 347,098 604,029 4,021,526 279,041 214,538 141,311 58,889 44,818 43,113 5,770,968 $ 11,188,724	%
Current assets 1100 Cash and cash equivalents 1110 Financial assets at fair value through profit or loss - current 1136 Financial assets at amortised cost - current 1150 Notes receivable, net 1170 Accounts receivable, net 1200 Other receivables 1220 Current income tax assets 130X Inventory 1410 Prepayments 1479 Other current assets 11XX Total current assets Non-current assets 1510 Financial assets at fair value through profit or loss - non-current 1517 Financial assets at fair value through other comprehensive income - non- current 1550 Investments accounted for under equity method 1600 Property, plant and equipment 1755 Right-of-use assets 1780 Intangible assets 1840 Deferred income tax assets 1915 Prepayments for equipment 1920 Guarantee deposits paid 1990 Other non-current assets 15XX Total non-current assets 1XXX Total assets				18 2 - 3 9 1 - 14 1 -
				48
				- 3 6 36 3 2 1 1 - -
				52
				100

(Continued)

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STANDARD CHEM. & PHARM. CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2024 AND 2023

(Expressed in thousands of New Taiwan Dollars)

Liabilities and Equity	Notes 6(12) and 8 6(20) 7 7 6(13) and 7 6(27) 6(9) and 7 6(14) and 8 6(20) 6(14) and 8 6(27) 6(9) and 7 6(15) 6(16) 6(7)(17) 6(3)(18)(19) 6(3)(7)(19) 4(3) 9	December 31, 2024 AMOUNT % $ 110,000 1 94,986 1 360,766 3 242,304 2 573,375 5 195,817 2 23,754 - 583 - 59,027 1 320 - 1,660,932 15 163,946 1 85,494 1 203,701 2 76,632 1 8,772 - 538,545 5 2,199,477 20 1,786,961 16 300,128 2 964,252 9 - - 2,745,543 25 108,131 1 5,905,015 53 3,071,053 27 8,976,068 80 $ 11,175,545 100	December 31, 2023	December 31, 2023
		AMOUNT $ 110,000 94,986 360,766 242,304 573,375 195,817 23,754 583 59,027 320 1,660,932 163,946 85,494 203,701 76,632 8,772 538,545 2,199,477 1,786,961 300,128 964,252 - 2,745,543 108,131 5,905,015 3,071,053 8,976,068 $ 11,175,545	AMOUNT $ 800,000 83,210 373,840 269,148 525,591 235,192 24,166 706 59,027 - 2,370,880 222,973 84,268 221,720 139,247 12,299 680,507 3,051,387 1,786,961 223,886 878,245 115,935 2,280,812 13,177 5,299,016 2,838,321 8,137,337 $ 11,188,724	%
Current liabilities 2100 Short-term borrowings 2130 Contract liabilities - current 2150 Notes payable 2170 Accounts payable 2200 Other payables 2230 Current income tax liabilities 2280 Lease liabilities - current 2310 Receipts in advance 2320 Long-term liabilities, current portion 2365 Refund liabilities - current 21XX Total current liabilities Non-current liabilities 2540 Long-term borrowings 2570 Deferred income tax liabilities 2580 Lease liabilities - non-current 2640 Net defined benefit liabilities - non- current 2645 Guarantee deposits received 25XX Total non-current liabilities 2XXX Total liabilities Equity attributable to owners of parent Share capital 3110 Common stock 3200 Capital surplus Retained earnings 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings 3400 Other equity interest 31XX Equity attributable to owners of the parent 36XX Non-controlling interest 3XXX Total equity Significant contingent liabilities and unrecognised contract commitments 3X2X Total liabilities and equity				7 1 3 2 5 2 - - 1 -
				21
				2 1 2 1 -
				6
				27
				16 2 8 1 20 -
				47
				26
				73
				100

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

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STANDARD CHEM. & PHARM. CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars, except for earnings per share amounts)

Items

Year ended December 31 2024 2023 Notes AMOUNT % AMOUNT % 6(20) and 7 $ 6,789,223 100 $ 6,239,768 100 6(6)(9)(10)(15)(2 5)(26) and 7 ( 3,800,532) ( 56) ( 3,514,390) ( 56) 2,988,691 44 2,725,378 44 6(9)(10)(15)(25)( 26) and 7 ( 823,212) ( 12) ( 794,519) ( 13) ( 469,546) ( 7) ( 414,102) ( 7) ( 288,094) ( 4) ( 266,272) ( 4) 12 ( 11,523) - 9,067 - ( 1,592,375) ( 23) ( 1,465,826) ( 24) 1,396,316 21 1,259,552 20 6(21) 37,727 - 66,378 1 6(3)(5)(22) and 7 157,579 2 101,082 2 6(2)(23) and 12 62,165 1 ( 5,282) - 6(8)(9)(24) and 7( 15,069) - ( 25,419) ( 1) 6(7) ( 11,359) - 41,556 1 231,043 3 178,315 3 1,627,359 24 1,437,867 23 6(27) ( 333,049) ( 5) ( 279,938) ( 4) $ 1,294,310 19 $ 1,157,929 19

4000 Operating revenue 5000 Operating costs 5900 Net operating margin Operating expenses 6100 Selling expenses 6200 General and administrative expenses 6300 Research and development expenses 6450 Expected credit (losses) gains 6000 Total operating expenses 6900 Operating profit Non-operating income and expenses 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Finance costs 7060 Share of (loss) profit of associates and joint ventures accounted for under equity method 7000 Total non-operating income and expenses 7900 Profit before income tax 7950 Income tax expense 8200 Profit for the year

(Continued)

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STANDARD CHEM. & PHARM. CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars, except for earnings per share amounts)

Items	Year ended December 31 2024 2023 Notes AMOUNT % AMOUNT 6(15) $ 41,214 1 $ 4,325 6(3) 90,593 1 152,547 6(7) ( 735) - ( 40) 6(27) ( 8,243) - ( 889) 12,155 - ( 773) 6(7)(19) 191 - ( 106) $ 135,175 2 $ 155,064 $ 1,429,485 21 $ 1,312,993 $ 880,501 13 $ 834,886 413,809 6 323,043 $ 1,294,310 19 $ 1,157,929 $ 1,012,236 15 $ 989,180 417,249 6 323,813 $ 1,429,485 21 $ 1,312,993 6(28) $ 4.93 $ $ 4.92 $	Year ended December 31	Year ended December 31	Year ended December 31
		2024	2023 % AMOUNT 1 $ 4,325 1 152,547 - ( 40) - ( 889) - ( 773) - ( 106) 2 $ 155,064 21 $ 1,312,993 13 $ 834,886 6 323,043 19 $ 1,157,929 15 $ 989,180 6 323,813 21 $ 1,312,993 4.93 $ 4.92 $	2023
					%
Other comprehensive income (loss) Components of other comprehensive income (loss) that will not be reclassified to profit or loss 8311 Remeasurement of defined benefit plans 8316 Unrealised gain on valuation of investments in equity instruments measured at fair value through other comprehensive income 8320 Share of other comprehensive loss of associates and joint ventures accounted for under equity method - will not be reclassified to profit or loss 8349 Income tax related to components of other comprehensive income that will not be reclassified to profit or loss Components of other comprehensive income (loss) that will be reclassified to profit or loss 8361 Financial statements translation differences of foreign operations 8370 Share of other comprehensive income (loss) of associates and joint ventures accounted for under equity method - will be reclassified to profit or loss 8300 Total other comprehensive income for the year 8500 Total comprehensive income for the year Profit attributable to: 8610 Owners of the parent 8620 Non-controlling interest Total comprehensive income attributable to: 8710 Owners of the parent 8720 Non-controlling interest Earnings per share (in dollars) 9750 Basic 9850 Diluted					- 2 - - - -
					2
					21
					14 5
					19
					16 5
					21
					4.67
		$		$	4.67

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

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STANDARD CHEM. & PHARM. CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars)

For the year ended December 31, 2023 Balance at January 1, 2023 Profit for the year Other comprehensive income (loss) for the year Total comprehensive income (loss) for the year Change in net equity of associates and joint ventures accounted for under equity method Overdue cash dividends payable Disposal of financial assets at fair value through other comprehensive income Distribution of 2022 earnings: Legal reserve Special reserve Cash dividends Change in non-controlling interest Balance at December 31, 2023 For the year ended December 31, 2024 Balance at January 1, 2024 Profit for the year Other comprehensive income for the year Total comprehensive income for the year Change in net equity of associates and joint ventures accounted for under equity method Overdue cash dividends payable Disposal of financial assets at fair value through other comprehensive income Distribution of 2023 earnings: Legal reserve Special reserve Cash dividends Change in non-controlling interest Balance at December 31, 2024	Notes 6(19) 6(7)(17) 6(17) 6(3)(19) 6(18) 6(18) 6(19) 6(7)(17) 6(17) 6(3)(19) 6(18) 6(18)							Equityattri	butable to owners of	theparent								Non-controlling interest $ 2,682,427 323,043 770 323,813 - 75 - - - - ( 167,994) $ 2,838,321 $ 2,838,321 413,809 3,440 417,249 - 23 - - - - ( 184,540) $ 3,071,053	Total equity
		Common stock			Capital	Surplus		Others		Retained Earnings		Unappropriated retained earnings	Other EquityInterest			Total
			Additional paid-in capital		Difference between the price for acquisition or disposal of subsidiaries and carryingamount $ 60,898 - - - - - - - - - - $ 60,898 $ 60,898 - - - - - - - - - - $ 60,898	Change in net equity of associates and joint ventures accounted for under equity method			Legal reserve $ 793,498 - - - - - - 84,747 - - - $ 878,245 $ 878,245 - - - - - - 86,007 - - - $ 964,252	Special reserve			Financial statements translation differences of foreign operations ( $ 6,482) - ( 970) ( 970) - - - - - - - ( $ 7,452) ( $ 7,452) - 11,941 11,941 - - - - - - - $ 4,489	Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income
		$ 1,786,961 - - - - - - - - - - $ 1,786,961 $ 1,786,961 - - - - - - - - - - $ 1,786,961	$ 152,088 - - - - - - - - - - $ 152,088 $ 152,088 - - - - - - - - - - $ 152,088			$ 7,085 - - - 3,281 - - - - - - $ 10,366 $ 10,366 - - - 76,170 - - - - - - $ 86,536		$ 413 - - - - 121 - - - - - $ 534 $ 534 - - - - 72 - - - - - $ 606		$ 110,329 - - - - - - - 5,606 - - $ 115,935 $ 115,935 - - - - - - - ( 115,935) - - $ -		$ 1,957,837 834,886 2,717 837,603 - - 22,465 ( 84,747) ( 5,606) ( 446,740) - $ 2,280,812 $ 2,280,812 880,501 30,363 910,864 - - 6,418 ( 86,007) 115,935 ( 482,479) - $ 2,745,543		($ 109,453) - 152,547 152,547 - - ( 22,465) - - - - $ 20,629 $ 20,629 - 89,431 89,431 - - ( 6,418) - - - - $ 103,642		$ 4,753,174 834,886 154,294 989,180 3,281 121 - - - ( 446,740) - $ 5,299,016 $ 5,299,016 880,501 131,735 1,012,236 76,170 72 - - - ( 482,479) - $ 5,905,015			$ 7,435,601 1,157,929 155,064 1,312,993 3,281 196 - - - ( 446,740) ( 167,994) $ 8,137,337 $ 8,137,337 1,294,310 135,175 1,429,485 76,170 95 - - - ( 482,479) ( 184,540) $ 8,976,068

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

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STANDARD CHEM. & PHARM. CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax Adjustments Adjustments to reconcile profit (loss) Net gain on financial assets at fair value through profit or loss Expected credit loss (gain) (Reversal of allowance) provision for inventory market price decline Share of loss (profit) of associates and joint ventures accounted for under equity method Loss on disposal of investments Depreciation Net loss on disposal of property, plant and equipment Property, plant and equipment transferred to expense Net gain on disposal of other non-current assets Amortisation Dividend income Interest income Interest expense Changes in operating assets and liabilities Changes in operating assets Financial assets at fair value through profit or loss Notes receivable Accounts receivable Other receivables Inventories Prepayments Other current assets Other non-current assets Changes in operating liabilities Contract liabilities - current Notes payable Accounts payable Other payables Receipts in advance Refund liabilities - current Net defined benefit liabilities - non-current Cash inflow generated from operations Dividends received Interest received Interest paid Income tax paid Net cash flows from operating activities

YearendedDecember 31, Notes 2024 2023 $ 1,627,359 $ 1,437,867 6(2)(23) ( 178 ) ( 2,890 ) 12 11,523 ( 9,067 ) 6(6) ( 6,901 ) 24,879 6(7) 11,359 ( 41,556 ) 6(23) 846 - 6(8)(9)(25) 385,589 329,459 6(23) 5,472 1,048 6(8) 533 2,522 6(23) - ( 2,314 ) 6(25) 19,149 18,314 6(22) ( 12,751 ) ( 10,463 ) 6(21) ( 37,727 ) ( 66,378 ) 6(24) 15,069 25,419 26,446 ( 276 ) 2,665 ( 9,530 ) ( 74,279 ) 18,825 136,743 62,435 ( 105,612 ) ( 261,589 ) ( 23,816 ) ( 7,881 ) 3,075 23,552 ( 2,717 ) - 11,776 ( 787 ) 5,623 ( 49,036 ) ( 26,844 ) 40,636 49,737 32,966 ( 123 ) 39 320 - ( 21,401 ) ( 6,370 ) 2,000,935 1,549,824 40,395 28,463 40,088 64,873 ( 15,535 ) ( 25,523 ) ( 370,942 ) ( 281,114 ) 1,694,941 1,336,523

(Continued)

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STANDARD CHEM. & PHARM. CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM INVESTING ACTIVITIES (Increase) decrease in financial assets at amortised cost - current Acquisition of financial assets at fair value through other comprehensive income - non-current Proceeds from disposal of financial assets at fair value through other comprehensive income - non-current Acquisition of investments accounted for under equity method Cash paid for acquisition of property, plant and equipment Interest paid for acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Acquisition of intangible assets Increase in prepayments for equipment Decrease (increase) in guarantee deposits paid Increase in other non-current assets Net cash flows used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Increase in short-term borrowings Decrease in short-term borrowings Payments of lease liabilities Increase in long-term borrowings Decrease in long-term borrowings (Decrease) increase in guarantee deposit received Overdue cash dividends payable Payments of cash dividends Decrease in non-controlling interests Net cash flows used in financing activities Effects of foreign exchange Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

YearendedDecember 31, Notes 2024 2023 ($ 74,000 ) $ 103,010 ( 83,055 ) ( 18,983 ) 6(3) 12,504 75,964 6(7) ( 47,800 ) - 6(29) ( 410,813 ) ( 429,742 ) 6(8)(24)(29) ( 2,338 ) ( 374 ) 15,586 1,525 6(10) ( 5,469 ) ( 2,722 ) ( 183,326 ) ( 195,580 ) 16,035 ( 12,816 ) ( 9,016 ) ( 5,787 ) ( 771,692 ) ( 485,505 ) 6(30) 1,092,509 1,977,850 6(30) ( 1,782,509 ) ( 2,527,853 ) 6(30) ( 24,828 ) ( 23,474 ) 6(30) - 106,493 6(30) ( 59,027 ) ( 6,493 ) 6(30) ( 3,527 ) 11,888 6(17) 95 196 6(18) ( 482,479 ) ( 446,740 ) ( 184,540 ) ( 167,994 ) ( 1,444,306 ) ( 1,076,127 ) 4,442 2,471 ( 516,615 ) ( 222,638 ) 6(1) 2,036,743 2,259,381 6(1) $ 1,520,128 $ 2,036,743

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

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STANDARD CHEM. & PHARM. CO., LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

1. HISTORY AND ORGANISATION

• (1) Standard Chem. & Pharm. Co., Ltd. (the ‘Company’) was incorporated on June 30, 1967 under the provisions of the Company Act of the Republic of China (R.O.C.) and other regulations. The Company is primarily engaged in the manufacturing and sales of Chinese and western medicine, cosmetics, beverage, normal instruments and medical instruments. Refer to Note 4(3), ‘ Basis of consolidation’ for the main business activities of the Company and its subsidiaries (the “Group”).

• (2) The Company has been listed on the Taiwan Stock Exchange starting from December 1995.

2. THE DATE OF AUTHORISATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL

STATEMENTS AND PROCEDURES FOR AUTHORISATION

These consolidated financial statements were authorised for issuance by the Board of Directors on February 25, 2025.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRS[®] ”) Accounting Standards that came into effect as endorsed by the Financial Supervisory Commission (“FSC”)

New standards, interpretations and amendments endorsed by the FSC and became effective from 2024 are as follows:

New Standards,Interpretations andAmendments	Effective date by International Accounting StandardsBoard (“IASB”)
Amendments to IFRS 16, ‘Lease liability in a sale and leaseback’ Amendments to IAS 1, ‘Classification of liabilities as current or non-current’ Amendments to IAS 1, ‘Non-current liabilities with covenants’ Amendments to IAS 7 and IFRS 7, ‘Supplier finance arrangements’	January 1, 2024 January 1, 2024 January 1, 2024 January 1, 2024

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment. (2) Effect of new issuances of or amendments to IFRS Accounting Standards as endorsed by the FSC but not yet adopted by the Group

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

follows:
New Standards,Interpretations andAmendments	Effective date by IASB
Amendments to IAS 21, ‘Lack of exchangeability’	January 1, 2025

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The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

(3) IFRS Accounting Standards issued by IASB but not yet endorsed by the FSC

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

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Effective date by
New Standards, Interpretations and Amendments IASB
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New Standards,Interpretations andAmendments	Effective date by IASB
Amendments to IFRS 9 and IFRS 7, ‘Amendments to the classification	January 1, 2026
and measurement of financial instruments’
Amendments to IFRS 9 and IFRS 7, ‘Contracts referencing nature –	January 1, 2026
dependent electricity’
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets	To be determined by
between an investor and its associate or joint venture’	IASB
IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendments to IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendment to IFRS 17, ‘Initial application of IFRS 17 and IFRS 9 –	January 1, 2023
comparative information’
IFRS 18, ‘Presentation and disclosure in financial statements’	January 1, 2027
IFRS 19, ‘Subsidiaries without public accountability: disclosures’	January 1, 2027
Annual Improvements to IFRS Accounting Standards – Volume 11	January 1, 2026

Except for the following, the above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment. IFRS 18, ‘Presentation and disclosure in financial statements’

IFRS 18 replaces IAS 1. The standard introduces a defined structure of the statement of profit or loss, disclosure requirements related to management-defined performance measures and enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes.

4. SUMMARY OF MATERIAL ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

The consolidated financial statements of the Group have been prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers”, International Financial Reporting Standards, International Accounting Standards, IFRIC[®] Interpretations, and SIC[®] Interpretations that came into effect as endorsed by the FSC (collectively referred herein as the “IFRSs”).

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(2) Basis of preparation

• A. Except for the following items, these consolidated financial statements have been prepared under the historical cost convention:

• (a) Financial assets at fair value through profit or loss.

• (b) Financial assets at fair value through other comprehensive income.

• (c) Defined benefit assets and liabilities recognised based on the net amount of pension fund assets less present value of defined benefit obligation.

• B. The preparation of financial statements in conformity with IFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5, ‘CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY’.

(3) Basis of consolidation

• A. Basis for preparation of consolidated financial statements:

• (a) All subsidiaries are included in the Group’s consolidated financial statements. Subsidiaries are all entities controlled by the Group. The Group controls an entity when the Group 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. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases when the Group loses control of the subsidiaries.

• (b) Inter-company transactions, balances and unrealised gains or losses on transactions between companies within the Group are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Group.

• (c) Profit or loss and each component of other comprehensive income are attributed to the owners of the parent and to the non-controlling interests. Total comprehensive income is attributed to the owners of the parent and to the non-controlling interests even if this results in the noncontrolling interests having a deficit balance.

• (d) Changes in a parent’s ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transactions with non-controlling interests) are accounted for as equity transactions, i.e. transactions with owners in their capacity as owners. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity.

• (e) When the Group loses control of a subsidiary, the Group remeasures any investment retained in the former subsidiary at its fair value. The fair value is regarded as the fair value on initial recognition of a financial asset or the cost on initial recognition of the associate or joint venture. Any difference between fair value and carrying amount is recognised in profit or loss. All amounts previously recognised in other comprehensive income in relation to the subsidiary

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are reclassified to profit or loss on the same basis as would be required if the related assets or liabilities were disposed of. That is, when the Group loses control of a subsidiary, all gains or losses previously recognised in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit or loss when the related assets or liabilities are disposed of.

B. Subsidiaries included in the consolidated financial statements:

Name Main business Name of investors of subsidiaries activities Standard Chem. & Pharm. Co., Ltd. Standard Pharmaceutical Co., Ltd. Research and development, trading, investment and other business of medical products Standard Chem. & Pharm. Co., Ltd. Chia Scheng International Co., Ltd. Sale of various medical supplements Standard Chem. & Pharm. Co., Ltd. Standard Chem. & Pharm. Philippines, Inc. Import and export of various medical products, medicine, medical supplements and other business of medical products Standard Chem. & Pharm. Co., Ltd. Inforight Technology Co., Ltd. Wholesale of multi- function printers and information software Standard Chem. & Pharm. Co., Ltd. Souriree Biotech & Pharm. Co., Ltd. Manufacturing of western medicine and retail and wholesale of various medicine	Ownership (%) December31,2024 100.00 100.00 100.00 100.00 93.58	Ownership (%) December31,2023 100.00 100.00 100.00 100.00 93.58	Description
			－ (Note 1) － － －

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Name Main business Name of investors of subsidiaries activities Standard Chem. & Pharm. Co., Ltd. Multipower Enterprise Corp. Import and export of western medicine, nourishment and function food, processing, manufacturing and sale of food Standard Chem. & Pharm. Co., Ltd. Advpharma Inc. Research and development, manufacturing and sale of various medicines Standard Chem. & Pharm. Co., Ltd. Syngen Biotech Co., Ltd. Research and development, manufacturing and sale of APIs, biopesticide, fertiliser and biochemical nutrition, sale of preventive medicines Standard Chem. & Pharm. Co., Ltd. Syn-Tech Chem. & Pharm. Co., Ltd. Manufacturing and sale of APIs, reagent, surfactant, Chinese and western medicine and veterinary medicine Standard Chem. & Pharm. Co., Ltd. Ho Yao Biopharm Co., Ltd. Research and development of new medicine Standard Chem. & Pharm. Co., Ltd. Shanghai Standard Pharmaceuticals Co., Ltd. Sale of various medicine and dietary supplement	Ownership (%) December31,2024 90.72 88.71 46.68 28.43 84.99 100.00	Ownership (%) December31,2023 90.72 88.71 46.68 28.43 84.99 100.00	Description － － (Note 2) (Note 3) － －

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Name Main business Name of investors of subsidiaries activities Standard Chem. & Pharm. Co., Ltd. Standard Chem. & Pharm. Vietnam Co., Ltd. Import and export of various medicine Standard Pharmaceutical Co., Ltd. Jiangsu Standard Biotech Pharmaceutical Co., Ltd. Research and development, technical consulting and technical services of medicines Advpharma Inc. CNH Technologies Inc. Research and development of various medicine Syngen Biotech Co., Ltd. Syngen Biotech International Sdn. Bhd. Research and development, manufacturing and sale of APIs and biochemical nutrition, sale of preventive medicines Syngen Biotech Co., Ltd. Jhan Shuo Biopharma Co., Ltd. Manufacturing, wholesale and sale of western medicine Syn-Tech Chem. & Pharm. Co., Ltd. Advpharma Inc. Research and development, manufacturing and sale of various medicine Syn-Tech Chem. & Pharm. Co., Ltd. CNH Technologies Inc. Research and development of various medicine Jiangsu Standard Biotech Pharmaceutical Co., Ltd. Jiangsu Standard-Dia Biopharma Co., Ltd. Research and development, manufacturing and sale of various medicines	Ownership (%) December31,2024 100.00 100.00 － 100.00 100.00 2.49 － 55.00	Ownership (%) December31,2023 － 100.00 35.60 100.00 100.00 2.49 47.62 55.00	Description (Note 4) － (Note 5) － － － (Note 5) －

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Note 1: Formerly named as ‘Chia Scheng Investment Co., Ltd.’.

• Note 2: The subsidiary, Syngen Biotech Co., Ltd. (“Syngen Biotech”), filed for an initial public offering with the Taipei Exchange. As part of the public trading process, the Group allowed its underwriter to exercise the overallotment option. Although the Group’s ownership percentage in Syngen Biotech is below 50%, the Group is still the largest single shareholder, and thus the Group did not lose its control over Syngen Biotech.

• Note 3: The Group’s shareholding ratio is lower than 50%. However, the Group is the single largest shareholder of Syn-Tech Chem. & Pharm. Co., Ltd. (“Syn-Tech”), the Group obtained substantial control over Syn-Tech through comprehensive assessment and reaching an agreement with another major shareholder.

• Note 4: Newly established during the first quarter of 2024.

• Note 5: Liquidated during the third quarter of 2024.

• C. Subsidiaries not included in the consolidated financial statements: None.

• D. Adjustments for subsidiaries with different balance sheet dates: None.

• E. Significant restrictions: None.

• F. Subsidiaries that have non-controlling interests that are material to the Group:

• (1) As of December 31, 2024 and 2023, the non-controlling interest of the Group amounted to $3,071,053 and $2,838,321, respectively. The information on non-controlling interest and respective subsidiaries is as follows:

Name of subsidiaries	Taiwan Taiwan Principal place of business	Amount Ownership (%) Amount Ownership (%) 1,191,888 $ 53.32% 1,136,213 $ 53.32% 1,819,839 $ 71.57% 1,640,034 $ 71.57% December31,2023 December31,2024 Non-controlling interest	Description － －
		Amount Ownership (%) 1,191,888 $ 53.32% 1,819,839 $ 71.57% December31,2024
		Amount 1,191,888 $ 1,819,839 $
Syngen Biotech Co., Ltd. Syn-Tech Chem. & Pharm. Co., Ltd.

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(2) Summarised financial information of the subsidiaries:

A. Syngen Biotech Co., Ltd.

(a) Balance sheets

ngen Biotech Co., Ltd. Balance sheets
		December 31, 2024		December 31, 2023
Current assets		$	1,155,042	$	1,132,444
Non-current assets			1,929,552		1,973,809
Current liabilities	(		520,155)	(	584,579)
Non-current liabilities	(		328,363)	(	390,054)
Total net assets		$	2,236,076	$	2,131,620

(b) Statements of comprehensive income

			Forthe years ended	Forthe years ended	December31,
			2024		2023
Revenue		$	2,013,592	$	1,837,185
Profit before income tax		$	299,611	$	333,802
Income tax expense	(		59,404)	(	58,975)
Net income		$	240,207	$	274,827
Total comprehensive income		$	239,915	$	275,441
Comprehensive income
attributable to non-controlling
interest		$	128,813	$	146,292
Dividends paid to non-controlling
interest		$	72,251	$	72,251

(c) Statements of cash flows

		For the years ended	For the years ended	For the years ended	December 31,
		2024			2023
Net cash flows provided by
operating activities	$	348,044		$	415,130
Net cash flows used in investing
activities	(	84,531)	(		93,677)
Net cash flows used in financing
activities	(	289,086)	(		200,537)
Effect of foreign exchange		615	(		78)
Net (decrease) increase in cash
and cash equivalents	(	24,958)			120,838
Cash and cash equivalents at
beginning of year		366,891			246,053
Cash and cash equivalents at
end of year	$	341,933		$	366,891

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B. Syn-Tech Chem. & Pharm. Co., Ltd.

(a) Balance sheets

(b) (c)

Statements of comprehensive income Statements of cash flows December31,2024 December31,2023 Current assets 1,333,320 $ 1,420,228 $ Non-current assets 1,518,608 1,480,603 Current liabilities 219,472) ( 507,009) ( Non-current liabilities 72,179) ( 76,473) ( Total net assets 2,560,277 $ 2,317,349 $ 2024 2023 Revenue 1,257,665 $ 1,124,689 $ Profit before income tax 488,200 $ 313,906 $ Income tax expense 94,954) ( 62,756) ( Net income 393,246 $ 251,150 $ Total comprehensive income 399,000 $ 252,024 $ Comprehensive income attributable to non-controlling interest 293,512 $ 188,019 $ Dividends paid to non-controlling interest 111,700 $ 95,743 $ Forthe years endedDecember31, 2024 2023 Net cash flows provided by operating activities 622,608 $ 262,288 $ Net cash flows used in investing activities 210,454) ( 316,663) ( Net cash flows used in financing activities 422,279) ( 123,663) ( Net decrease in cash and cash equivalents 10,125) ( 178,038) ( Cash and cash equivalents at beginning of year 666,922 844,960 Cash and cash equivalents at end of year 656,797 $ 666,922 $ Forthe years endedDecember31,

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(4) Foreign currency translation

Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The consolidated financial statements are presented in New Taiwan dollars, which is the Company’s functional and the Group’s presentation currency.

• A. Foreign currency transactions and balances

• (a) Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognised in profit or loss in the period in which they arise.

• (b) Monetary assets and liabilities denominated in foreign currencies at the period end are retranslated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognised in profit or loss.

• (c) Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in other comprehensive income. However, nonmonetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.

• (d) All other foreign exchange gains and losses based on the nature of those transactions are presented in the consolidated statements of comprehensive income within other gains and losses.

• B. Translation of foreign operations

• (a) The financial performance and financial position of all the group entities and associates that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

  • i. Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;

  • ii. Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and

  • iii. All resulting exchange differences are recognised in other comprehensive income.

• (b) When the foreign operation partially disposed of or sold is an associate, exchange differences that were recorded in other comprehensive income are proportionately reclassified to profit or loss as part of the gain or loss on sale. In addition, even when the Group retains partial interest in the former foreign associate after losing significant influence over the former foreign associate, such transactions should be accounted for as disposal of all interest in these foreign

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operations.

  - (c) When the foreign operation partially disposed of or sold is a subsidiary, cumulative exchange differences that were recorded in other comprehensive income are proportionately transferred to the non-controlling interest in this foreign operation. In addition, if the Group retains partial interest in the former foreign subsidiary after losing control of the former foreign subsidiary, such transactions should be accounted for as disposal of all interest in the foreign operation.

• (5) Classification of current and non-current items

• A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets:

  • (a) Assets arising from operating activities that are expected to be realised, or are intended to be sold or consumed within the normal operating cycle;

  • (b) Assets held mainly for trading purposes;

  • (c) Assets that are expected to be realised within 12 months from the balance sheet date;

  • (d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities more than twelve months after the balance sheet date.

• B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities:

  • (a) Liabilities that are expected to be settled within the normal operating cycle;

  • (b) Liabilities arising mainly from trading activities;

  • (c) Liabilities that are to be settled within 12 months from the balance sheet date;

  • (d) It does not have the right at the end of the reporting period to defer settlement of the liability at least twelve months after the reporting period.

(6) Cash equivalents

• A. Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

• B. Time deposits and repurchase bonds that meet the definition above and are held for the purpose of meeting short-term cash commitments in operations are classified as cash equivalents.

• (7) Financial assets at fair value through profit or loss

• A. Financial assets at fair value through profit or loss are financial assets that are not measured at amortised cost or fair value through other comprehensive income.

• B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognised and derecognised using trade date accounting.

• C. At initial recognition, the Group measures the financial assets at fair value and recognises the transaction costs in profit or loss. The Group subsequently measures the financial assets at fair value, and recognises the gain or loss in profit or loss.

• D. The Group recognises the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.

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(8) Financial assets at amortised cost

• A. Financial assets at amortised cost are those that meet all of the following criteria:

• (a) The objective of the Group’s business model is achieved by collecting contractual cash flows.

• (b) The assets’ contractual cash flows represent solely payments of principal and interest.

• B. The Group’s time deposits which do not fall under cash equivalents are those with a short maturity period and are measured at initial investment amount as the effect of discounting is immaterial.

• (9) Financial assets at fair value through other comprehensive income

• A. Financial assets at fair value through other comprehensive income comprise equity securities which are not held for trading, and for which the Group has made an irrevocable election at initial recognition to recognise changes in fair value in other comprehensive income.

• B. On a regular way purchase or sale basis, financial assets at fair value through other comprehensive income are recognised and derecognised using trade date accounting.

• C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs. The Group subsequently measures the financial assets at fair value:

• The changes in fair value of equity investments that were recognised in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment. Dividends are recognised as revenue when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.

• (10) Accounts and notes receivable

• A. Accounts and notes receivable entitle the Group a legal right to receive consideration in exchange for transferred goods or rendered services.

• B. The short-term accounts and notes receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

• (11) Inventories

• Inventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted-average method. The cost of finished goods and work in process comprises raw materials, direct labour, other direct costs and related production overheads (allocated based on normal operating capacity). It excludes borrowing costs. The item by item approach is used in applying the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and the estimated costs necessary to make the sale. If the cost exceeds net realisable value, valuation loss is accrued and recognised in operating costs. If the net realisable value reverses, valuation is eliminated within credit balance and is recognised as deduction of operating costs.

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(12) Impairment of financial assets

• For financial assets at amortised cost, at each reporting date, the Group recognises the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognises the impairment provision for the lifetime expected credit losses (ECLs) if such credit risk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand, for accounts receivable that do not contain a significant financing component, the Group recognises the impairment provision for lifetime ECLs.

(13) Derecognition of financial assets

• The Group derecognises a financial asset when the contractual rights to receive the cash flows from the financial asset expire.

－ (14) Leasing arrangements (lessor) operating leases

Lease income from an operating lease (net of any incentives given to lessee) is recognised in profit or loss on straight-line basis over the lease term.

(15) Investments accounted for under equity method / associates

• A. Associates are all entities over which the Group has significant influence but not control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for under the equity method and are initially recognised at cost.

• B. The Group’s share of its associates’ post-acquisition profits or losses is recognised in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income. When the Group’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Group does not recognise further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.

• C. When changes in an associate’s equity do not arise from profit or loss or other comprehensive income of the associate and such changes do not affect the Group’s ownership percentage of the associate, the Group recognises the Group’s share of change in equity of the associate in ‘capital surplus’ in proportion to its ownership.

• D. Unrealised gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been adjusted where necessary to ensure consistency with the policies adopted by the Group.

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• E. In the case that an associate issues new shares and the Group does not subscribe or acquire new shares proportionately, which results in a change in the Group’s ownership percentage of the associate but maintains significant influence on the associate, then ‘capital surplus’ and ‘investments accounted for under equity method’ shall be adjusted for the increase or decrease of its share of equity interest. If the above condition causes a decrease in the Group’s ownership percentage of the associate, in addition to the above adjustment, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately on the same basis as would be required if the relevant assets or liabilities were disposed of.

• F. When the Group disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate, are reclassified to profit or loss, on the same basis as would be required if the relevant assets or liabilities were disposed of. If it retains significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately in accordance with the aforementioned approach.

• G. When the Group disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognised as capital surplus in relation to the associate are transferred to profit or loss. If it retains significant influence over this associate, the amounts previously recognised as capital surplus in relation to the associate are transferred to profit or loss proportionately.

(16) Property, plant and equipment

• A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalised.

• B. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

• C. Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.

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• D. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year-end. If expectations for the assets’ residual values and useful lives differ from previous estimates or the patterns of consumption of the assets’ future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’, from the date of the change. The estimated useful lives of property, plant and equipment are as follows:

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Assets Useful lives
----- End of picture text -----

Assets	Us	eful lives
Buildings (including auxiliary equipment)	2 ～	60 years
Machinery and equipment	2 ～	50 years
Utility equipment	2 ～	20 years
Transportation equipment	2 ～	15 years
Office equipment	2 ～	9 years
Other equipment	2 ～	20 years

(17) Leasing arrangements (lessee) － right-of-use assets / lease liabilities

• A. Leases are recognised as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Group. For short-term leases or leases of lowvalue assets, lease payments are recognised as an expense on a straight-line basis over the lease term.

• B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payments are comprised of fixed payments, less any lease incentive receivable. The Group subsequently measures the lease liability at amortised cost using the interest method and recognises interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognised as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

• C. At the commencement date, the right-of-use asset is stated at cost comprising the following: (a) The amount of the initial measurement of lease liability; and

• (b) Any lease payments made at or before the commencement date.

• The right-of-use asset is measured subsequently using the cost model and is depreciated from the commencement date to the earlier of the end of the asset’s useful life or the end of the lease term. When the lease liability is remeasured, the amount of remeasurement is recognised as an adjustment to the right-of-use asset.

• D. For lease modifications that decrease the scope of the lease, the lessee shall decrease the carrying amount of the right-of-use asset and remeasure the lease liability to reflect the partial or full termination of the lease, and recognise the difference in profit or loss.

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(18) Intangible assets

A. Goodwill

Goodwill arises in a business combination accounted for by applying the acquisition method.

• B. Computer software

Computer software is stated at cost and amortised on a straight-line basis over its estimated useful life of 1 ~ 20 years.

• C. Patents

Patents is stated at cost and amortised on a straight-line basis over its estimated useful life of 5 ~ 20 years.

• D. Other intangible assets

Technical skill transfer fee, royalty paid for acquisition of techniques and distribution rights and trademarks are stated at cost, with exception of technical skill transfer fee, other intangible assets are amortised on a straight-line basis over its estimated useful life of 9 ~ 10 years. The technical skill transfer fee is regarded as having an indefinite useful life as it was assessed to generate continuous net cash inflow in the foreseeable future. Therefore it is not amortised, but is tested annually for impairment.

• (19) Impairment of non-financial assets

• A. The Group assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell or value in use. Except for goodwill, when the circumstances or reasons for recognising impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortised historical cost would have been if the impairment had not been recognised.

• B. The recoverable amounts of goodwill and intangible asset with uncertain useful life are evaluated periodically. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. Impairment loss of goodwill previously recognised in profit or loss shall not be reversed in the following years.

• C. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash-generating units, or groups of cash-generating units, that is/are expected to benefit from the synergies of the business combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes. Goodwill is monitored at the operating segment level.

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(20) Borrowings

Borrowings comprise long-term and short-term bank borrowings. Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in profit or loss over the period of the borrowings using the effective interest method.

(21) Notes and accounts payable

• A. Accounts payable are liabilities for purchases of raw materials, goods or services and notes payable are those resulting from operating and non-operating activities.

• B. The short-term notes and accounts payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(22) Derecognition of financial liabilities

A financial liability is derecognised when the obligation in the contract is discharged or cancelled or expires.

(23) Employee benefits

• A. Short-term employee benefits

Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period and should be recognised as expenses in that period when the employees render service.

• B. Pensions

• (a) Defined contribution plan

For defined contribution plan, the contributions are recognised as pension expenses when they are due on an accrual basis. Prepaid contributions are recognised as an asset to the extent of a cash refund or a reduction in the future payments.

• (b) Defined benefit plan

• i. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Group in current period or prior periods. The liability recognised in the balance sheet in respect of defined benefit pension plan is 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 independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of government bonds (at the balance sheet date) of a currency and term consistent with the currency and term of the employment benefit obligations.

• ii. Remeasurements arising on defined benefit plans are recognised in other comprehensive income in the period in which they arise and are recorded as retained earnings.

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• C. Employees’ compensation and directors’ remuneration

  • Employees’ compensation and directors’ remuneration are recognised as expenses and liabilities, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates. If employees’ compensation is distributed by shares, the Group calculates the number of shares based on the closing price at the previous day of the board meeting resolution.

• (24) Income tax

• A. The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or items recognised directly in equity, in which cases the tax is recognised in other comprehensive income or equity.

• B. The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company and its domestic subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.

• C. Deferred tax is recognised, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. However, the deferred tax is not accounted for if it arises from initial recognition of goodwill or of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss and does not give rise to equal taxable and deductible temporary differences. Deferred tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is determined using tax rates and laws that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.

• D. Deferred tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. At each balance sheet date, unrecognised and recognised deferred tax assets are reassessed.

• E. Current income tax assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. Deferred tax assets and liabilities are offset on the balance sheet when the entity has the legally enforceable

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right to offset current tax assets against current tax liabilities and they are levied by the same taxation authority on either the same entity or different entities that intend to settle on a net basis or realise the asset and settle the liability simultaneously.

• F. A deferred tax asset shall be recognised for the carryforward of unused tax credits resulting from research and development expenditures, etc., to the extent that it is possible that future taxable profit will be available against which the unused tax credits can be utilised.

(25) Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax, from the proceeds.

• (26) Dividends

Cash dividends are recorded as liabilities in the Company’s financial statements in the period in which they are resolved by the Board of Directors. Stock dividends are recorded as stock dividends to be distributed in which they are resolved by the Company’s shareholders and are reclassified to ordinary shares on the effective date of new shares issuance.

• (27) Revenue recognition

• A. Sales of goods

  • (a) The Group manufactures and sells human pharmaceuticals and dietary supplements, etc. Revenue is recognised when control of the products has transferred, being when the products are delivered to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, or the Group has objective evidence that all criteria for acceptance have been satisfied.

  • (b) Goods are often sold with discounts and allowances based on the price spread given by the National Health Insurance. Revenue is recognised based on the price specified in the contract, net of the estimated sales discounts and allowances. Reversal of accounts receivable is recognised for expected sales discounts and allowances payable to customers in relation to sales made until the end of the reporting period. The terms of sales transactions are set individually with each clients and usually are made with cash payment in 2 months after billings, or to obtain cheques with a maturity of 4~6 months upon billings. As the time interval between the transfer of committed goods or service and the payment of customer does not exceed one year, the Group does not adjust the transaction price to reflect the time value of money.

  • (c) A receivable is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

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• B. Rendering of services

• (a) The Group provides processing services. Revenue from providing services is recognised in the accounting period in which the services are rendered. For fixed price contracts, revenue is recognised based on the actual service provided to the end of the balance sheet date as a proportion of the total services to be provided.

• (b) The Group’s estimate about revenue, costs and progress towards complete satisfaction of a performance obligation is subject to a revision whenever there is a change in circumstances. Any increase or decrease in revenue or costs due to an estimate revision is reflected in profit or loss during the period when the management become aware of the changes in circumstances.

• C. Incremental costs of obtaining a contract

Given that the contractual period lasts less than one year, the Group recognises the incremental costs of obtaining a contract as an expense when incurred although the Group expects to recover those costs.

• (28) Government grants

Government grants are recognised in profit or loss on a systematic basis over the periods in which the Group recognises expenses for the related costs for which the grants are intended to compensate.

• (29) Operating segments

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The Group’s chief operating decision maker is responsible for allocating resources and assessing performance of the operating segments.

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF

ASSUMPTION UNCERTAINTY

The preparation of these consolidated financial statements requires management to make critical judgements in applying the Group’s accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. Such assumptions and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, and the related information is addressed below:

(1) Critical judgements in applying the Group’s accounting policies

None.

(2) Critical accounting estimates and assumptions

• A. Valuation of inventories

• (a) As inventories are stated at the lower of cost and net realisable value, the Group must determine the net realisable value of inventories on balance sheet date using judgements and estimates. Due to the influence of different market demand and expiration date, etc., the Group evaluates the amounts of normal inventory consumption, obsolete inventories or inventories without market selling value on balance sheet date, and writes down the cost of inventories to the net

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realisable value. Such an evaluation of inventories is principally based on the demand for the products within the specified period in the future. Therefore, there might be material changes to the valuation.

• (b) As of December 31, 2024, the carrying amount of inventories was $1,720,381.

• B. Financial assets - fair value measurement of unlisted stocks without active market

• (a) The fair value of unlisted stocks held by the Group that are not traded in an active market is determined considering those companies’ recent funding raising activities and technical development status, fair value assessment of other companies of the same type, market conditions and other economic indicators existing on balance sheet date. Any changes in these judgements and estimates will impact the fair value measurement of these unlisted stocks. Please refer to Note 12(3) for the fair value information of financial instruments.

• (b) As of December 31, 2024, the carrying amount of unlisted stocks without active market was $130,565.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

$130,565. TAILS OF SIGNIFICANT ACCOUNTS Cash and cash equivalents
Cash: Revolving funds and petty cash Checking deposits and demand deposits Cash equivalents: Time deposits Repurchase bonds	December31,2024 28,230 $ 894,992 923,222 566,906 30,000 596,906 1,520,128 $	December31,2023
		10,099 $ 949,581
		959,680
		664,164 412,899
		1,077,063
		2,036,743 $

• A. The Group transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.

• B. As of December 31, 2024 and 2023, the carrying amount of more than 3-month time deposits (listed as “Financial assets at amortised cost - current”) was $134,500 and $60,500, respectively.

• C. As of December 31, 2024 and 2023, the Group has no cash and cash equivalents pledged to others.

• D. Details of the Group’s more than 3-month time deposits (listed as “Financial assets at amortised cost - current”) pledged to others as collateral are provided in Note 8, ‘PLEDGED ASSETS’.

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

	December	31,2024	December	31,2023
Current items:
Financial assets mandatorily measured at fair
value through profit or loss
Beneficiary certificates	$	96,029	$	153,043
Listed stocks		61,471		19,657
Emerging stocks		820		-
Unlisted stocks		12,000		12,000
		170,320		184,700
Valuation adjustment	(	12,960)	(	6,410)
	$	157,360	$	178,290
Non-current items:
Financial assets mandatorily measured at fair
value through profit or loss
Emerging stocks	$	157	$	1,759
Unlisted stocks		17,800		18,567
		17,957		20,326
Valuation adjustment	(	6,690)	(	3,721)
	$	11,267	$	16,605

• A. The Group recognised net gain (listed as “Other gains and losses”) of $178 and $5,526 for the years ended December 31, 2024 and 2023, respectively.

• B. As of December 31, 2024 and 2023, the Group has no financial assets at fair value through profit or loss pledged to others.

(3) Financial assets at fair value through other comprehensive income - non-current

Equity instruments Listed stocks Unlisted stocks Valuation adjustment	December31,2024 186,442 $ 216,997 403,439 104,803 508,242 $	December31,2023
		129,473 $ 196,997
		326,470 20,628
		347,098 $

• A. The Group has elected to classify equity instruments that are considered to be strategic investments as financial assets at fair value through other comprehensive income. Without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at fair value through other comprehensive income held by the Group was its book value.

• B. The Group disposed financial assets at fair value through other comprehensive income in the amount of $12,504 and $75,964 for the years ended December 31, 2024 and 2023, respectively. This resulted in cumulative gain on disposal amounting to $6,418 and $22,465, which was reclassified to retained earnings for the years ended December 31, 2024 and 2023, respectively.

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• C. The Group recognised $90,593 and $152,547 in other comprehensive income in relation to fair value change for the years ended December 31, 2024 and 2023, respectively.

• D. The Group recognised dividend income of $11,671 and $10,138 in profit or loss (listed as “Other income”) from financial assets at fair value through other comprehensive income for the years ended December 31, 2024 and 2023, respectively.

• E. As of December 31, 2024 and 2023, the Group has no financial assets at fair value through other comprehensive income pledged to others.

(4) Notes and accounts receivable

comprehensive income pledged to others. Notes and accounts receivable
	December 31, 2024		December	31, 2023
Notes receivable	$	284,116	$	286,781
Less: Allowance for uncollectible accounts	(	428)	(	237)
	$	283,688	$	286,544
Accounts receivable	$	1,065,543	$	991,576
Less: Allowance for uncollectible accounts	(	26,388)	(	15,368)
	$	1,039,155	$	976,208

• A. The ageing analysis of notes and accounts receivable is as follows:

Notes receivable: Within the credit period Overdue up to 90 days Overdue 91 to 180 days Accounts receivable: Within the credit period Overdue up to 90 days Overdue 91 to 180 days Overdue over 271 days	December31,2024 283,785 $ 327 4 284,116 $ 935,243 $ 66,981 63,230 89 1,065,543 $	December31,2023 286,094 $ 683 4
		286,781 $
		910,207 $ 70,689 10,637 43
		991,576 $

The above aging analysis was based on days overdue.

• B. As of December 31, 2024 and 2023, notes and accounts receivable were all from contracts with customers. As of January 1, 2023, the balance of receivables from contracts with customers amounted to $1,287,657.

• C. Without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Group’s notes and accounts receivable was its book value.

• D. As of December 31, 2024 and 2023, the Group has no notes and accounts receivable pledged to others.

~39~

• E. Information about the credit risk of notes and accounts receivable is provided in Note 12(2), ‘Financial instruments’.

• (5) Other receivables

‘Financial instruments’. Other receivables
Claims receivable (Note 1) (Note 2) Others	December31,2024 - $ 16,567 16,567 $	December31,2023
		136,156 $ 19,515
		155,671 $

• －

• (Note 1) The Company was affected by the fire incident in the neighbouring subsidiary Syn-Tech Chem. & Pharm. Co., Ltd. (hereinafter referred to as “Syn-Tech”) on May 20, 2021, which resulted in the damage of certain property, plant and equipment, and inventories and therefore interrupting part of the operations. The insurance company had checked the damaged property in June 2023 and paid insurance claims in the amount of $109,132. The Company recognised the difference of $42,831 between the actual indemnity income and original estimated insurance claims as fire claims income in 2023.

• (Note 2) The subsidiary, Syn-Tech suffered from a fire incident on May 20, 2021, which resulted in the damage of certain property, plant and equipment and inventories and therefore interrupting part of the operations.

• Syn-Tech had obtained property insurance for its property, plant and equipment and has inspected some purchasing contract of the assets and after consideration of Consumer Price Index, calculated the replacement cost that could be covered by the insurance based on the document made by a third-party notary through on-site investigation and accessible information. Syn-Tech recognised indemnity income at $171,191 limited to the loss of each property for the year ended December 31, 2021. The insurance company had checked the damaged property in September 2024 and paid insurance claims in the amount of $246,393. Syn-Tech recognised the difference of $75,202 between the actual indemnity income and original estimated insurance claims as fire claims income (listed as “Other income”) in 2024.

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(6) Inventories

Inventories
Merchandise Raw materials Supplies Work in process Finished goods Merchandise Raw materials Supplies Work in process Finished goods	Allowance for Cost valuation loss 127,548 $ 4,636) ($ 445,177 22,827) ( 103,561 15,040) ( 298,784 9,769) ( 825,652 28,069) ( 1,800,722 $ 80,341) ($ December31,2024 Allowance for Cost valuation loss 121,246 $ 3,698) ($ 491,443 41,028) ( 105,952 9,959) ( 286,872 4,366) ( 696,705 28,191) ( 1,702,218 $ 87,242) ($ December31,2023	Bookvalue
		122,912 $ 422,350 88,521 289,015 797,583
		1,720,381 $
		Bookvalue
		117,548 $ 450,415 95,993 282,506 668,514
		1,614,976 $

The cost of inventories recognised as expenses for the year:

		For the years ended	For the years ended	December 31,
		2024		2023
Cost of goods sold	$	3,763,649	$	3,449,436
Loss on scrapped inventories		35,964		29,225
(Reversal of allowance) provision for inventory
market price decline (Note)	(	6,901)		24,879
Underapplied fixed manufacturing overhead		7,470		11,212
Gain on physical inventory	(	1,097)	(	1,629)
	$	3,799,085	$	3,513,123

(Note) For the year ended December 31, 2024, the Group reversed a previous inventory write-down as a result of the subsequent sales and scrap of inventories which were previously provided with allowance.

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(7) Investments accounted for under equity method

A. Movements of investments accounted for under equity method:

		For theyears ended December31,	For theyears ended December31,	For theyears ended December31,
		2024		2023
At January 1	$	604,029	$	577,338
Acquisition of investments accounted for under
equity method		47,800		-
Share of profit or loss of investments accounted
for under equity method	(	11,359)		41,556
Earnings distribution of investments accounted for
under equity method	(	27,644)	(	18,000)
Capital surplus－Changes in net equity of associates
and joint ventures accounted for under equity		76,170		3,281
Retained earnings－Remeasurement of
defined benefit plan	(	735)	(	40)
Other equity interest－Financial statements
translation differences of foreign operations		191	(	106)
At December 31	$	688,452	$	604,029

B. Details of investments accounted for under equity method are as follows:

Geneferm Biotechnology Co., Ltd. We Can Medicines Co., Ltd. Taiwan Biosim Co., Ltd.	December31,2024 298,703 $ 324,130 65,619 688,452 $	December 31, 2023
		327,830 $ 243,423 32,776
		604,029 $

C. Associates:

(a) The basic information of the associates that are material to the Group is as follows:

Companyname We Can Medicines Co., Ltd. Geneferm Biotechnology Co., Ltd. and subsidiaries	Principal place ofbusiness Taiwan Taiwan	Shareholdingratio	Shareholdingratio
		December31,
		2024 29.93% 28.94%	2023
			32.89% 28.94%

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• (b) The summarised financial information of the associates that are material to the Group is as follows:

• i. Balance sheets

  • (i) We Can Medicines Co., Ltd.

ii.	(ii) Geneferm Biotechnology Co., Ltd. and subsidiaries Statements of comprehensive income (i) We Can Medicines Co., Ltd. December31,2024 Current assets 1,464,623 $ Non-current assets 1,620,971 Current liabilities 921,387) ( Non-current liabilities 1,048,049) ( Total net assets 1,116,158 $ Share in associate’s net assets 334,066 $ Goodwill 15,279 Unrealised gain from transactions with associates 25,215) ( Carrying amount of the associate 324,130 $ December31,2024 Current assets 411,971 $ Non-current assets 734,524 Current liabilities 134,260) ( Non-current liabilities 224,051) ( Total net assets 788,184 $ Share in associate’s net assets 228,057 $ Goodwill 70,651 Unrealised gain from transactions with associate 5) ( Carrying amount of the associate 298,703 $ 2024 Revenue 3,269,204 $ Net (loss) income 47,176) ($ Total comprehensive (loss) income 49,628) ($ For theyears ended	December31,2023 1,291,531 $ 1,569,322 1,045,095) ( 999,411) ( 816,347 $ 268,497 $ - 25,074) ( 243,423 $ December31,2023 397,132 $ 778,243 189,859) ( 92,679) ( 892,837 $ 258,387 $ 70,651 1,208) ( 327,830 $ 2023 3,122,894 $ 14,803 $ 14,683 $ December31,

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• (ii) Geneferm Biotechnology Co., Ltd. and subsidiaries

	Forthe years ended	December31,
	2024	2023
Revenue	521,163 $	793,770 $
Net (loss) income	22,528) ($	124,621 $
Total comprehensive (loss) income	21,733) ($	124,256 $

• (c) As of December 31, 2024 and 2023, the carrying amount of the Group’s individually immaterial associates amounted to $65,619 and $32,776, respectively. The share in associates’ financial performance is as follows:

financial performance is as follows:
2024 Net profit 7,894 $ Total comprehensive income 7,894 $ For the years ended	December 31,
	2023
	794 $
	794 $

• (d) As of December 31, 2024, the fair value of the Group’s investment accounted for under equity method, We Can Medicines Co., Ltd., was $519,646, due to the initial public offering on the Taipei Exchange in the first quarter of 2024.

• (e) As of December 31, 2024 and 2023, the fair value of the Group’s investment accounted for under equity method, Geneferm Biotechnology Co., Ltd., was $564,000 and $894,000, respectively.

• (f) The subsidiary of the Company, Syngen Biotech Co., Ltd., is Geneferm’s single largest corporate shareholder. However, the Group does not hold more than 50 percent of voting rights during shareholders’ meetings and has no agreement with other shareholders to negotiate or jointly make decisions, which indicates that the Group does not have the ability to direct the relevant activities. Therefore, the Group concluded that it has no control or significant influence over Geneferm.

• D. Details of various equity transactions between the Company and its related parties for the year ended December 31, 2024 are provided in Note 7, “RELATED PARTY TRANSACTIONS”. There was no such situation for the year ended December 31, 2023.

• E. As of December 31, 2024 and 2023, the Group has no investments accounted for under equity method pledged to others.

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(8) Property, plant and equipment

AtJanuary1,2024 Cost Accumulated depreciation For the year ended December31,2024 At January 1 Additions - cost Transfers (Note 1) Depreciation Disposals - cost Disposals- accumulated depreciation Net exchange differences At December 31 At December31,2024 Cost Accumulated depreciation

Construction in progress and Utility Transportation Office Other equipment to Land Buildings Machinery equipment equipment equipment equipment be inspected Total 770,539 $ 2,189,911 $ 2,170,248 $ 313,507 $ 24,367 $ 46,006 $ 1,184,136 $ 345,846 $ 7,044,560 $ - 853,621) ( 1,327,828) ( 204,185) ( 18,574) ( 35,019) ( 583,807) ( - 3,023,034) ( 770,539 $ 1,336,290 $ 842,420 $ 109,322 $ 5,793 $ 10,987 $ 600,329 $ 345,846 $ 4,021,526 $ 770,539 $ 1,336,290 $ 842,420 $ 109,322 $ 5,793 $ 10,987 $ 600,329 $ 345,846 $ 4,021,526 $ 128,000 29,838 46,628 4,794 226 4,617 35,149 143,715 392,967 - 193,679 64,126 26,825 1,855 1,356 84,501 283,039) ( 89,303 - 70,011) ( 155,750) ( 18,511) ( 1,962) ( 4,667) ( 107,672) ( - 358,573) ( - 343) ( 31,156) ( 1,579) ( 664) ( 6,839) ( 29,856) ( - 70,437) ( - 343 15,689 1,567 664 6,836 24,280 - 49,379 - 4,449 140 - 4 9 44 - 4,646 898,539 $ 1,494,245 $ 782,097 $ 122,418 $ 5,916 $ 12,299 $ 606,775 $ 206,522 $ 4,128,811 $ 898,539 $ 2,420,764 $ 2,252,048 $ 343,547 $ 25,877 $ 45,262 $ 1,273,358 $ 206,522 $ 7,465,917 $ - 926,519) ( 1,469,951) ( 221,129) ( 19,961) ( 32,963) ( 666,583) ( - 3,337,106) ( 898,539 $ 1,494,245 $ 782,097 $ 122,418 $ 5,916 $ 12,299 $ 606,775 $ 206,522 $ 4,128,811 $

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AtJanuary1,2023 Cost Accumulated depreciation For the year ended December31,2023 At January 1 Additions - cost Transfers - cost (Note 2) Transfers- accumulated depreciation (Note 2) Depreciation Disposals - cost Disposals- accumulated depreciation Net exchange differences At December 31 At December31,2023 Cost Accumulated depreciation

Construction in progress and Utility Transportation Office Other equipment to Land Buildings Machinery equipment equipment equipment equipment be inspected Total 770,539 $ 2,054,723 $ 1,955,216 $ 261,126 $ 23,302 $ 42,528 $ 914,290 $ 385,153 $ 6,406,877 $ - 801,669) ( 1,200,223) ( 190,453) ( 17,392) ( 33,114) ( 505,445) ( - 2,748,296) ( 770,539 $ 1,253,054 $ 754,993 $ 70,673 $ 5,910 $ 9,414 $ 408,845 $ 385,153 $ 3,658,581 $ 770,539 $ 1,253,054 $ 754,993 $ 70,673 $ 5,910 $ 9,414 $ 408,845 $ 385,153 $ 3,658,581 $ - 34,245 69,529 13,051 1,409 4,191 84,451 165,268 372,144 - 106,196 161,237 39,811 30) ( 249 195,537 204,575) ( 298,425 - - - - 70 70) ( 478 - 478 - 55,668) ( 142,979) ( 14,213) ( 1,566) ( 2,791) ( 86,719) ( - 303,936) ( - 2,752) ( 14,999) ( 481) ( 284) ( 921) ( 10,025) ( - 29,462) ( - 2,752 14,675 481 284 921 7,776 - 26,889 - 1,537) ( 36) ( - - 6) ( 14) ( - 1,593) ( 770,539 $ 1,336,290 $ 842,420 $ 109,322 $ 5,793 $ 10,987 $ 600,329 $ 345,846 $ 4,021,526 $ 770,539 $ 2,189,911 $ 2,170,248 $ 313,507 $ 24,367 $ 46,006 $ 1,184,136 $ 345,846 $ 7,044,560 $ - 853,621) ( 1,327,828) ( 204,185) ( 18,574) ( 35,019) ( 583,807) ( - 3,023,034) ( 770,539 $ 1,336,290 $ 842,420 $ 109,322 $ 5,793 $ 10,987 $ 600,329 $ 345,846 $ 4,021,526 $

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• (Note 1) Including transfer of $7,108 from ‘Inventories’; transfer of $82,728 from ‘Prepayments for equipment’ and transfer of $533 to expenses.

• (Note 2) Including transfer of $8,217 from ‘Inventories’; transfer of $293,208 from ‘Prepayments for equipment’ and transfer of $2,522 to expenses.

• A. As of December 31, 2024 and 2023, the carrying amount of land, buildings and other equipment held for operating leases are as follows:

Land Buildings Other equipment	December31,2024 December31,2023 5,264 $ 5,264 $ 10,227 $ 10,619 $ 1,738 $ 2,557 $

• B. Amount of borrowing costs capitalised as part of property, plant and equipment and the range of the interest rates for such capitalisation are as follows:

Amount capitalised Interest rate range	For the years ended December 31,	For the years ended December 31,
	2024 2,338 $ 0.84%～1.68%	2023
		374 $ 1.42%～1.77%

• C. Information about property, plant and equipment that were pledged to others as collateral as of December 31, 2024 and 2023 is provided in Note 8, ‘PLEDGED ASSETS’.

• －

• (9) Leasing arrangements lessee

• A. The Group leases various assets including land, buildings and transportation equipments. Rental ～

• contracts are typically made for periods of 2 50 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants.

• B. The carrying amount of right-of-use assets and the depreciation are as follows:

Land Buildings Transportation equipment Land Buildings Transportation equipment	December31,2024 December31,2023 Carryingamount Carryingamount 237,379 $ 246,651 $ 14,575 23,390 8,687 9,000 260,641 $ 279,041 $ Forthe years endedDecember31,	December31,2023
		Carryingamount
		246,651 $ 23,390 9,000
		279,041 $
	2024 Depreciation 16,171 $ 9,325 1,520 27,016 $	2023
		Depreciation
		16,024 $ 8,423 1,076
		25,523 $

~47~

• C. The additions to right-of-use assets were $6,330 and $11,626 for the years ended December 31, 2024 and 2023, respectively.

• D. The information on profit and loss accounts relating to lease contracts is as follows:

		For the years ended	For the years ended	December 31,
		2024		2023
Items affecting profit or loss
Interest expense on lease liabilities	$	4,012	$	3,134
Expense on short-term lease contract		6,431		3,874
Expense on leases of low-value assets		145		608

• E. The Group’s total cash outflow for leases was $35,416 and $31,090 for the years ended December 31, 2024 and 2023, respectively.

(10) Intangible assets

Intangible assets
		Goodwill		Software		Patents		Others		Total
At January1,2024
Cost	$	174,159	$	42,684	$	65,903	$	84,058	$	366,804
Accumulated amortisation	(	248)	(	37,904)	(	36,081)	(	62,503)	(	136,736)
Accumulated impairment		-		-		-	(	15,734)	(	15,734)
Net exchange differences		-	(	15)		219		-		204
	$	173,911	$	4,765	$	30,041	$	5,821	$	214,538
For the year ended
December31,2024
At January 1	$	173,911	$	4,765	$	30,041	$	5,821	$	214,538
Additions - acquired
separately		-		2,239		630		2,600		5,469
Amortisation		-	(	2,660)	(	9,601)	(	17)	(	12,278)
Disposals - cost		-	(	28,258)		-		-	(	28,258)
Disposals- accumulated
amortisation		-		28,258		-		-		28,258
Net exchange differences		-		2		-		-		2
At December 31	$	173,911	$	4,346	$	21,070	$	8,404	$	207,731
AtDecember31,2024
Cost	$	174,159	$	16,665	$	66,533	$	86,658	$	344,015
Accumulated amortisation	(	248)	(	12,306)	(	45,682)	(	62,520)	(	120,756)
Accumulated impairment		-		-		-	(	15,734)	(	15,734)
Net exchange differences		-	(	13)		219		-		206
	$	173,911	$	4,346	$	21,070	$	8,404	$	207,731

~48~

		Goodwill			Software			Patents		Others		Total
At January1,2023
Cost	$	174,159		$	41,867		$	63,998	$	84,058	$	364,082
Accumulated amortisation	(	248)	(		35,097)	(		25,761)	(	62,460)	(	123,566)
Accumulated impairment		-			-			-	(	15,734)	(	15,734)
Net exchange differences		-	(		15)			219		-		204
	$	173,911		$	6,755		$	38,456	$	5,864	$	224,986
For the year ended
December31,2023
At January 1	$	173,911		$	6,755		$	38,456	$	5,864	$	224,986
Additions - acquired
separately		-			817			1,905		-		2,722
Amortisation		-	(		2,807)	(		10,320)	(	43)	(	13,170)
At December 31	$	173,911		$	4,765		$	30,041	$	5,821	$	214,538
At December 31, 2023
Cost	$	174,159		$	42,684		$	65,903	$	84,058	$	366,804
Accumulated amortisation	(	248)	(		37,904)	(		36,081)	(	62,503)	(	136,736)
Accumulated impairment		-			-			-	(	15,734)	(	15,734)
Net exchange differences		-	(		15)			219		-		204
	$	173,911		$	4,765		$	30,041	$	5,821	$	214,538

A. No borrowing costs were capitalised as part of intangible assets for the years ended December 31, 2024 and 2023.

B. Details of amortisation on intangible assets are as follows:

		Forthe years endedDecember31,	Forthe years endedDecember31,	Forthe years endedDecember31,
		2024		2023
Operating costs	$	6,154	$	6,451
Selling expenses		21		643
General and administrative expenses		3,860		3,835
Research and development expenses		2,243		2,241
	$	12,278	$	13,170
C. The Group applied value in use method when calculating recoverable amount of goodwill and
determined the recoverable amount to be greater than the carrying amount; thus, no impairment
was identified. Goodwill distributed to cash generating		unit according to operating segment is
shown below:
	December31,2024		December31,2023
Multipower Enterprise Corp.	$	70,265	$	70,265
Syn-Tech Chem. & Pharm. Co., Ltd.	$	91,972	$	91,972
Ho Yao Biopharm Co., Ltd.	$	11,674	$	11,674

~49~

• D. Impairment information about the intangible assets is provided in Note 6(11), “ Impairment of non-financial assets”.

• E. As of December 31, 2024 and 2023, the Group has no intangible assets pledged to others.

• (11) Impairment of non-financial assets

• A. Goodwill is tested annually for impairment. Goodwill is allocated to the Group’s cash-generating unit identified according to operating segment. The recoverable amount of all cash-generating units has been determined based on value-in-use calculations. These calculations use cash flow projections based on financial budgets approved by the cash-generating unit. Cash flow of financial budgets is prepared based on forecasts of growth of future annual revenue, profit and capital expenditure. Management determined budgeted gross margin based on past performance and its expectation of market development. The weighted average growth rates used are consistent with the forecasts included in industry reports. The discount rates used are pre-tax and reflect specific risks relating to the relevant operating segments.

• B. The recoverable amount of all cash-generating units calculated using the value-in-use exceeded their carrying amount, so goodwill was not impaired for the years ended December 31, 2024 and 2023.

• C. As of December 31, 2024 and 2023, the carrying amount of accumulated impairment of nonfinancial assets was both $15,734.

(12) Short-term borrowings

Short-term borrowings
Type of borrowings Unsecured bank borrowings Type of borrowings Unsecured bank borrowings	December31,2024 110,000 $ December31,2023 800,000 $	Interestraterange 1.80% Interestraterange 1.58%～1.75%	Collateral
			None Collateral
			None

For more information about the interest expenses recognised in profit or loss by the Group for the years ended December 31, 2024 and 2023, refer to Note 6(24), ‘Finance costs’.

(13) Other payables

Accrued salaries and bonuses Accrued employees’ compensation and directors’ remuneration Equipment payable Others	December31,2024 281,687 $ 50,741 6,648 234,299 573,375 $	December31,2023 297,081 $ 43,803 8,135 176,572 525,591 $

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- (14) Long term borrowings

==> picture [504 x 228] intentionally omitted <==

----- Start of picture text -----

Type of borrowings Maturity date December 31, 2024 Interest rate Collateral Note
Bank secured borrowings 2027.1.15 $ 122,973 2.02% Constuction in progress (Note 1)
Bank secured borrowings 2043.10.26 100,000 1.94% Buildings (Note 2)
222,973
Less: Current portion of
long-term borrowings ( 59,027)
$ 163,946
Type of borrowings Maturity date December 31, 2023 Interest rate Collateral Note
Bank secured borrowings 2027.1.15 $ 182,000 1.90% Constuction in progress (Note 1)
Bank secured borrowings 2043.10.26 100,000 1.82% Buildings (Note 2)
282,000
Less: Current portion of
long-term borrowings ( 59,027)
$ 222,973
----- End of picture text -----

• ～

• (Note 1) The principal has a grace period of 18 35 months. After the grace period expires, the principal and interest are payable in 25 installments.

• (Note 2) The principal has a grace period of 36 months. After the grace period expires, the principal and interest are payable in 204 installments.

For more information about the interest expenses recognised in profit or loss by the Group for the years ended December 31, 2024 and 2023, refer to Note 6(24), ‘Finance costs’.

(15) Pensions

• A. The Company and its domestic subsidiaries have a defined benefit pension plan in accordance with the Labour Standards Law, covering all regular employees’ service years prior to the enforcement of the Labour Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Law. 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 and its domestic subsidiaries contribute monthly an ～

• amount equal to 2% 5% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company and its domestic subsidiaries would assess the balance in the aforementioned labour pension reserve account by December 31, every year. If the account balances are insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company and its domestic subsidiaries will make contribution for the deficit by next March. In accordance with defined benefit pension plan, the Company and its domestic subsidiaries disclose the related information as follows:

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(a) The amounts recognised in the balance sheet are as follows:

	December	31,2024	December	31,2023
Present value of defined benefit obligations	($	465,632)	($	501,667)
Fair value of plan assets		423,145		393,479
	($	42,487)	($	108,188)
Net defined benefit liability (Note 1)	($	76,632)	($	139,247)
Net defined benefit asset (Note 2)		34,145		31,059
	($	42,487)	($	108,188)

(Note 1) Listed as ‘Net defined benefit liabilities - non-current’.

(Note 2) Listed as ‘Other non-current assets’.

(b) Movements in defined benefit liability are as follows:

	Present value of	Present value of
	defined benefit			Fair value of		Net defined
		obligation		plan assets	benefit liability
For the year ended
December31,2024
At January 1	($	501,667)	$	393,479	($	108,188)
Current service cost	(	2,978)		-	(	2,978)
Interest (expense) income	(	5,893)		4,667	(	1,226)
	(	510,538)		398,146	(	112,392)
Remeasurements:
Return on plan assets (excluding
amounts included in interest
income or expense)		-		35,838		35,838
Change in financial assumptions		14,396		-		14,396
Experience adjustments	(	9,020)		-	(	9,020)
		5,376		35,838		41,214
Pension fund contribution		-		21,633		21,633
Paid pension		39,530	(	32,472)		7,058
At December 31	($	465,632)	$	423,145	($	42,487)

~52~

	Present value of	Present value of
	defined benefit		Fair value of				Net defined
		obligation		plan assets		benefit liability
For the year ended
December31,2023
At January 1	($	526,187)	$	403,637	($		122,550)
Current service cost	(	6,671)		-	(		6,671)
Interest (expense) income	(	6,404)		4,962	(		1,442)
Effects of pension plan curtailment		243		-			243
	(	539,019)		408,599	(		130,420)
Remeasurements:
Return on plan assets (excluding
amounts included in interest
income or expense)		-		3,656			3,656
Change in financial assumptions	(	2,108)		-	(		2,108)
Experience adjustments		2,777		-			2,777
		669		3,656			4,325
Pension fund contribution		-		13,775			13,775
Paid pension		36,683	(	32,551)			4,132
At December 31	($	501,667)	$	393,479	($		108,188)

(c) The Bank of Taiwan was commissioned to manage the Fund of the Company’s and its domestic subsidiaries’ defined benefit pension plan in accordance with the Fund’s annual investment and utilisation plan and the “Regulations for Revenues, Expenditures, Safeguard and Utilisation of the Labour Retirement Fund” (Article 6: The scope of utilisation for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-the-counter, or private placement equity securities, investment in domestic or foreign real estate securitisation products, etc.). With regard to the utilisation of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings is less than aforementioned rates, government shall make payment for the deficit after being authorised by the Regulator. The Company and its domestic subsidiaries have no right to participate in managing and operating that fund and hence the Company and its domestic subsidiaries are unable to disclose the classification of plan asset fair value in accordance with IAS 19 paragraph 142. The fair value of plan assets as of December 31, 2024 and 2023 is given in the Annual Labour Retirement Fund Utilisation Report announced by the government.

~53~

(d) The principal actuarial assumptions used were as follows:

	Forthe years endedDecember31,	Forthe years endedDecember31,
	2024	2023
Discount rate	1.60%～1.65%	1.20%
Future salary increases	2.00%～3.00%	2.00%～3.00%

For the years ended December 31, 2024 and 2023, assumptions regarding future mortality rate are both set based on the 6th Taiwan Standard Ordinary Experience Mortality Table.

Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis was as follows:

Discount rate Future salary increases Increase 0.25% Decrease 0.25% Increase 0.25% Decrease 0.25% December 31, 2024 Effect on present value of defined benefit obligation ($ 8,661) $ 8,918 $ 8,585 ($ 8,382) December 31, 2023 Effect on present value of defined benefit obligation ($ 10,144) $ 10,459 $ 10,289 ($ 10,033) The sensitivity analysis above is based on one assumption which changed while the other conditions remain unchanged. In practice, more than one assumption may change all at once. The method of analysing sensitivity and the method of calculating net pension liability in the balance sheet are the same.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the previous year.

• (e) Expected contributions to the defined benefit pension plan of the Group for the year ended December 31, 2025 amount to $10,342.

• ～

• (f) As of December 31, 2024, the weighted average duration of that retirement plan is 6 10 years. The analysis of timing of the future pension payment was as follows:

The analysis of timing of the future pension payment was as follows:
Within 1 year 2~5 years Over 5 years	16,477 $ 152,321 356,723
	525,521 $

• B. Effective July 1, 2005, the Company and its domestic subsidiaries have established a defined contribution pension plan (the “New Plan”) under the Labour Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company and its domestic subsidiaries contribute monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labour

~54~

Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment. The Group’s subsidiaries in Mainland China are subject to the government sponsored defined contribution plan. Monthly contributions to an independent fund administered by the government in accordance with the pension regulations in the People’s Republic of China (PRC) are based on a certain percentage of employees’ monthly salaries and wages. For the years ended December 31, 2024 and 2023, the contribution rates are both from 16%. Other than the monthly contributions, the Group has no further obligations. The pension costs under the defined contribution pension plans of the Group for the years ended December 31, 2024 and 2023 were $58,321 and $53,687, respectively.

(16) Share capital – common stock

• A. Movements in the number of the Company’s ordinary shares outstanding are as follows (in thousands of shares):

For the years ended December 31, 2024 2023 Beginning and ending balance 178,696 178,696

• B. As of December 31, 2024, the Company’s authorised capital was $2,000,000, and the paid-in capital was $1,786,961, consisting of 178,696 thousand shares of ordinary share, with a par value of $10 (in dollars) per share. Shares can be issued several times. All proceeds from shares issued have been collected.

(17) Capital surplus

• A. 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 capitalised 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.

• B. As the Company’s associate, We Can Medicines Co., Ltd., issued and converted employee stock options resulting in changes in net equity, the Company recognised the change in net equity proportionately to its ownership amounting to $1,779 and $3,281 for the years ended December 31, 2024 and 2023, respectively.

• C. Due to the initial public offering on the Taipei Exchange in the first quarter of 2024, the Company’s associate, We Can Medicines Co., Ltd., issued new shares through cash capital increase, and the Group did not subscribe the shares proportionately to its ownership, resulting in an increase in capital surplus by $74,391.

• D. For the years ended December 31, 2024 and 2023, pursuant to the Business Letter No. 10602420200 issued by the Ministry of Economic Affairs, the subsidiary of the Company, Syngen Biotech Co., Ltd., and the Company reclassified dividends payable of $95 and $196, respectively, which was expired and not collected by the shareholders, to capital surplus.

~55~

(18) Retained earnings

• A. Within the limit, except for covering accumulated deficit 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 reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company’s paid-in capital.

• B. Under the Company’s Articles of Incorporation, as the Company operates in a volatile business environment and is in the stable growth stage, the Board of Directors takes into consideration the Company’s future capital needs, long-term financial planning and shareholders’ needs for cash inflow. The Company’s earnings, if any, are distributed in the following order:

• (a) Pay all taxes.

• (b) Cover accumulated deficit.

• (c) Appropriate 10% as legal reserve, until such legal reserve amounts to the total paid-in capital.

• (d) Appropriate or reverse special reserve in accordance with regulations.

• (e) At least 10% of the remainder and previous unappropriated retained earnings as stockholders’ bonus and cash dividends shall account for at least 20% of total dividends distributed. If the cash dividend is below $0.5 (in dollars) per share, the Company can distribute stock dividends instead of cash dividends upon resolution of the shareholders.

• When the shareholders bonus is distributed in stock dividend, it shall be allocated according to the resolutions of the shareholders during their meeting. The Company authorised the Board of Directors to process resolution resolved by a majority vote at the meeting attended by two-thirds of the total number of directors: all or part of distributed dividends and bonus, and capital reserve/legal surplus reserve shall be distributed by cash. The result shall be reported to the shareholders’ meeting.

• C. In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings. For the years ended December 31, 2024 and 2023, special reserve of ($115,935) and $5,606, respectively, was (reversed) set aside in accordance with the Company Act on special reserve.

• D. As resolved by the Board of Directors on March 14, 2023 and February 27, 2024, the Company recognised cash dividends distributed to owners amounting to $446,740 ($2.5 (in dollars) per share) and $482,479 ($2.7 (in dollars) per share) for the appropriations of 2022 and 2023 earnings, respectively. On February 25, 2025, the Board of Directors resolved the distribution of dividends from 2024 earnings of $500,349 ($2.8 (in dollars) per share). Information about the distribution of dividends by the Company as proposed by the Board of Directors will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

~56~

(19) Other equity

Other equity
At January 1 Currency translation differences - Group - Associates Valuation adjustment - Group Valuation adjustment transferred to retained earnings - Group At December 31 At January 1 Currency translation differences - Group - Associates Valuation adjustment - Group Valuation adjustment transferred to retained earnings - Group At December 31	Currency translation Unrealised gain (loss) on valuation of financialassets Total 7,452) ($ 20,629 $ 13,177 $ 11,750 - 11,750 191 - 191 - 89,431 89,431 - 6,418) ( 6,418) ( 4,489 $ 103,642 $ 108,131 $ For theyear ended December 31,2024 For the year ended December 31, 2023
		Currency translation	Unrealised gain (loss) on valuation of financialassets Total 109,453) ($ 115,935) ($ - 864) ( - 106) ( 152,547 152,547 22,465) ( 22,465) ( 20,629 $ 13,177 $
	6,482) ($ 864) ( 106) ( - - 7,452) ($

~57~

(20) Operating revenue

• A. The Group derives revenue from the transfer of goods at a point in time and of services over time in the following major product categories and geographical regions:

			Forthe year	Forthe year	endedDecember	31,	2024
			Domestic		International		Total
Revenue from sales of medicine		$	2,682,321	$	415,781	$	3,098,102
Revenue from sales of dietary
supplement			2,016,788		71,604		2,088,392
Revenue from sales of Active
Pharmaceutical Ingredients			350,896		979,216		1,330,112
Revenue from rendering of services			2,029		-		2,029
Others			259,627		10,961		270,588
		$	5,311,661	$	1,477,562	$	6,789,223
			Forthe year		endedDecember	31,	2023
			Domestic		International		Total
Revenue from sales of medicine		$	2,429,991	$	432,448	$	2,862,439
Revenue from sales of dietary
supplement			1,864,361		72,118		1,936,479
Revenue from sales of Active
Pharmaceutical Ingredients			307,317		840,615		1,147,932
Revenue from rendering of services			1,618		-		1,618
Others			251,363		39,937		291,300
		$	4,854,650	$	1,385,118	$	6,239,768
B. The Group has recognised the following			revenue-related	contract liabilities:
	December 31, 2024			December31,2023		January1,2023
Contract liabilities – current
Sales of medicine	$		43,587	$	34,899	$	35,430
Sales of dietary supplement			45,531		44,943		22,853
Sales of Active Pharmaceutical
Ingredients			4,754		31		15
Others			1,114		3,337		25,699
	$		94,986	$	83,210	$	83,997
	December31,2024			December31,2023		January1,2023
Refund liabilities - current	$		320	$	-	$	-

Revenue recognised that was included in the contract liability balance at the beginning of the years ended December 31, 2024 and 2023 were $65,355 and $62,896, respectively.

~58~

(21) Interest income

Interest income
Other income Interest income from bank deposits Dividend income Rental income Research income Royalty income Technology transfer income Government grants income Fire insurance claim income (Note) Other income	For theyears ended December31,
	2024 2023 37,727 $ 66,378 $ 2024 2023 12,751 $ 10,463 $ 2,194 2,321 23,389 4,149 15,699 10,362 8,734 - 7,992 10,626 75,202 42,831 11,618 20,330 157,579 $ 101,082 $ Forthe years endedDecember31,	2023

(22) Other income

(Note) Refer to Note 6(5), ‘Other receivables’.

(23) Other gains and losses

(Note) Refer to Note 6(5), ‘Other receivables’. Other gains and losses
		For the years ended December 31,
		2024		2023
Net gain on financial assets at fair value
through profit or loss	$	178	$	5,526
Net loss on disposal of property, plant and
equipment	(	5,472)	(	1,048)
Net gain on disposal of other non-current assets		-		2,314
Net currency exchange gain		86,853		5,617
Loss on disposal of investments	(	846)		-
Other losses	(	18,548)	(	17,691)
	$	62,165	($	5,282)

(24) Finance costs

Finance costs
			Forthe years ended		December31,
			2024		2023
Interest expense
Bank borrowings		$	13,395	$	22,659
Lease liabilities			4,012		3,134
			17,407		25,793
Less: Capitalisation of qualifying assets	(		2,338)	(	374)
		$	15,069	$	25,419

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(25) Expenses by nature

Expenses by nature
Employee benefit expenses Employee benefit expenses Depreciation Amortisation Employee benefit expenses Depreciation Amortisation Wages and salaries Labour and health insurance expenses Pension costs Other personnel expenses Wages and salaries Labour and health insurance expenses Pension costs Other personnel expenses	Recognised in Recognised in operating costs operating expenses Total 859,034 $ 830,976 $ 1,690,010 $ 293,977 91,612 385,589 10,757 8,392 19,149 1,163,768 $ 930,980 $ 2,094,748 $ Recognised in Recognised in operating costs operating expenses Total 779,252 $ 775,377 $ 1,554,629 $ 257,208 72,251 329,459 10,272 8,042 18,314 1,046,732 $ 855,670 $ 1,902,402 $ Forthe yearendedDecember31,2024 Forthe yearendedDecember31,2023 Recognised in Recognised in operating costs operating expenses Total 717,122 $ 711,398 $ 1,428,520 $ 71,604 58,683 130,287 31,538 30,987 62,525 38,770 29,908 68,678 859,034 $ 830,976 $ 1,690,010 $ Recognised in Recognised in operatingcosts operatingexpenses Total 649,235 $ 662,783 $ 1,312,018 $ 66,337 55,280 121,617 29,623 31,934 61,557 34,057 25,380 59,437 779,252 $ 775,377 $ 1,554,629 $ For theyear ended December31,2024 For the year ended December 31, 2023
	Recognised in operating costs 717,122 $ 71,604 31,538 38,770 859,034 $ For the
	Recognised in operatingcosts 649,235 $ 66,337 29,623 34,057 779,252 $	Recognised in operatingexpenses 662,783 $ 55,280 31,934 25,380 775,377 $

(26) Employee benefit expenses

A. In accordance with the Articles of Incorporation of the Company, a ratio of distributable profit of the current year (pre-tax profit before deducting employees’ compensation and directors’ remuneration), after covering accumulated losses, shall be distributed as employees’ compensation and directors’ remuneration. The ratio shall be 1% ～ 10% for employees’ compensation and shall not be higher than 3% for directors’ remuneration. Employees’

~60~

compensation will be distributed in the form of shares or cash. Qualification requirements of employees, including the employees of subsidiaries of the company meeting certain specific requirements, are entitled to receive aforementioned stock or cash. The Company may, by a resolution adopted by a majority vote at a meeting of board of directors attended by two-thirds of the total number of directors, have the profit distributable as employees’ compensation distributed in the form of shares or in cash; and in addition thereto a report of such distribution shall be submitted to the shareholders during their meeting.

• B. Employees’ compensation was accrued at $10,770 and $10,108 for the years ended December 31, 2024 and 2023, respectively; while directors’ remuneration was accrued at $4,500 and $3,150 for the years ended December 31, 2024 and 2023, respectively. The aforementioned amounts were recognised in salary expenses that were estimated and accrued based on the distributable net profit of current year calculated by the percentage prescribed under the Company’s Articles of Incorporation. As resolved by the Board of Directors on February 25, 2025, the employees’ compensation and directors’ remuneration were $10,777 and $4,500, respectively, and the employees’ compensation will be distributed in the form of cash. Total of the employees’ compensation and directors’ remuneration for 2023 as resolved by the Board of Directors was $13,200, and the employees’ compensation was distributed in the form of cash. The difference between the aforementioned amount and the amount of $13,258 recognised in the 2023 financial statements by $58, mainly caused by estimation differences, had been adjusted in the profit or loss for 2024. Information about employees’ compensation and directors’ remuneration of the Company as resolved by the Board of Directors will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

(27) Income tax

• A. Income tax expense:

• (a) Components of income tax expense:

e tax ome tax expense: Components of income tax expense:
		Forthe years ended		December31,
		2024		2023
Current tax:
Current tax on profits for the year	$	319,481	$	287,724
Tax on undistributed earnings		24,020		16,301
Over provision of prior year’s income tax	(	12,482)	(	9,862)
		331,019		294,163
Deferred tax:
Origination and reversal of temporary
differences		2,030	(	14,225)
Total income tax expense	$	333,049	$	279,938

~61~

(b) The income tax relating to components of other comprehensive income is as follows:

			For theyears ended	For theyears ended	December31,
			2024		2023
Remeasurement of defined benefit obligation	$		8,243	$	889
B. Reconciliation between income tax expense and accounting profit:
			Forthe years ended		December31,
			2024		2023
Tax calculated based on profit before tax and		$	367,379	$	328,288
statutory tax rate
Effect of amount not allowed to be recognised	(		48,949)	(	49,517)
under regulations
Effect from investment tax credits	(		199)	(	2,394)
Effect from loss carryfoward	(		81)	(	3,134)
Taxable loss not recognised as deferred tax assets			3,361		-
Effect from alternative minimum tax			-		256
Tax on undistributed earnings			24,020		16,301
Over provision of prior year’s income tax	(		12,482)	(	9,862)
Income tax expense		$	333,049	$	279,938

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• C. Amounts of deferred tax assets or liabilities as a result of temporary differences and loss carryforward are as follows:

carryforward are as follows:
			For	the yearended		December31,2024
							Recognised
								in other
				Recognised in		comprehensive
		January1		profit or loss		income or loss			December31
Deferred tax assets
Temporary differences:
Allowance for doubtful	$		4,187	$	1,993		$	-		$	6,180
accounts
Unrealised loss on
inventories from
market value decline			17,445	(	1,381)			-			16,064
Unrealised exchange loss			3,851	(	3,851)			-			-
Investment loss			48,013		3,465			-			51,478
Unrealised impairment loss
on intangible assets			3,147		-			-			3,147
Unrealised sales returns and
allowance			8,482		1,051			-			9,533
Unused compensated
absences			8,033		718			-			8,751
Pensions			21,096	(	3,474)	(		8,243)			9,379
Loss carryforward			27,057		675			-			27,732
	141,311 $			($	804)	($		8,243)		$	132,264
Deferred tax liabilities
Temporary differences:
Unrealised exchange gain	$		-	($	1,645)		$	-	($		1,645)
Pensions	(		4,095)	(	1,416)			-	(		5,511)
Intangible assets identified
from business combinations	(		5,507)		1,835			-	(		3,672)
Provision for land value
incremental tax	(		74,666)		-			-	(		74,666)
	($		84,268)	($	1,226)		$	-	($		85,494)
	$		57,043	($	2,030)	($		8,243)		$	46,770

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For the year ended December 31, 2023

							Recognised	Recognised
								in other
				Recognised in		comprehensive
		January1		profit or loss		income or loss			December31
Deferred tax assets
Temporary differences:
Allowance for doubtful	$		5,659	($	1,472)		$	-		$	4,187
accounts
Unrealised loss on
inventories from
market value decline			12,471		4,974			-			17,445
Unrealised exchange loss			-		3,851			-			3,851
Investment loss			46,904		1,109			-			48,013
Unrealised impairment loss
on intangible assets			3,147		-			-			3,147
Unrealised sales returns and
allowance			6,189		2,293			-			8,482
Unused compensated
absences			7,524		509			-			8,033
Pensions			19,873		2,112	(		889)			21,096
Employee benefits			3	(	3)			-			-
Loss carryforward			26,603		454			-			27,057
	128,373 $			$	13,827	($		889)		$	141,311
Deferred tax liabilities
Temporary differences:
Unrealised exchange gain	($		2,657)	$	2,657		$	-		$	-
Pensions			-	(	4,095)			-	(		4,095)
Intangible assets identified
from business combinations	(		7,343)		1,836			-	(		5,507)
Provision for land value
incremental tax	(		74,666)		-			-	(		74,666)
	($		84,666)	$	398		$	-	($		84,268)
	$		43,707	$	14,225	($		889)		$	57,043

~64~

• D. Expiration dates of loss carryforward and amounts of unrecognised deferred tax assets are as follows:

Amount filed/ Year incurred approved 2015～2024 442,905 $ Amount filed/ Year incurred approved 2014～2023 443,650 $	Unrecognised Unused amount deferred tax assets 423,992 $ 285,334 $ Unrecognised Unused amount deferred tax assets 417,600 $ 282,315 $ December31,2024 December 31, 2023	Expiry year
		2025～2034 Expiry year
		2024～2033

• E. The Company’s income tax returns through 2022 have been assessed and approved by the Tax Authority. The Company does not have any administrative remedy as of February 25, 2025.

• (28) Earnings per share

Authority. The Company does not have any administrative remedy as of February 25, 2025. Earnings per share	ve any administrative remedy as of February 25, 2025.	ve any administrative remedy as of February 25, 2025.	ve any administrative remedy as of February 25, 2025.	ve any administrative remedy as of February 25, 2025.
Weighted average number of ordinary shares outstanding Earnings per Amount aftertax (sharesinthousands) share (indollars) Basic earnings per share Profit attributable to ordinary shareholders of the parent 880,501 $ 178,696 4.93 $ Diluted earnings per share Profit attributable to ordinary shareholders of the parent 880,501 $ 178,696 Assumed conversion of all dilutive potential ordinary shares Employees’ compensation - 204 Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares 880,501 $ 178,900 4.92 $ For theyear ended December31,2024	For theyear ended December31,2024
			Weighted average number of ordinary shares outstanding (sharesinthousands) 178,696 178,696 204 178,900	Earnings per share (indollars)
				4.93 $ 4.92 $

~65~

(29)Supplemental cash flow information A. Investing activities with partial cash payments: B. Operating and investing activities with no cash flow effects: Weighted average number of ordinary shares outstanding Earnings per Amount aftertax (sharesinthousands) share (indollars) Basic earnings per share Profit attributable to ordinary shareholders of the parent 834,886 $ 178,696 4.67 $ Diluted earnings per share Profit attributable to ordinary shareholders of the parent 834,886 $ 178,696 Assumed conversion of all dilutive potential ordinary shares Employees’ compensation - 194 Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares 834,886 $ 178,890 4.67 $ For theyear ended December31,2023 2024 2023 Acquisition of property, plant and equipment 392,967 $ 372,144 $ Add: Beginning balance of notes payable 37,206 72,188 Beginning balance of payable on equipment (listed as “Other payables”) 8,135 31,125 Less: Ending balance of notes payable 18,509) ( 37,206) ( Ending balance of payable on equipment (listed as “Other payables”) 6,648) ( 8,135) ( Capitalised interest 2,338) ( 374) ( Cash paid for acquisition of property, plant and equipment 410,813 $ 429,742 $ For the years ended December 31, 2024 2023 (1) Write-off of accounts receivable 312 $ 20 $ (2) Inventories transferred to property, plant and equipment 7,108 $ 8,217 $ (3) Prepayments for equipment transferred to property, plant and equipment 82,728 $ 293,208 $ Forthe years endedDecember31,	(29)Supplemental cash flow information A. Investing activities with partial cash payments: B. Operating and investing activities with no cash flow effects: Weighted average number of ordinary shares outstanding Earnings per Amount aftertax (sharesinthousands) share (indollars) Basic earnings per share Profit attributable to ordinary shareholders of the parent 834,886 $ 178,696 4.67 $ Diluted earnings per share Profit attributable to ordinary shareholders of the parent 834,886 $ 178,696 Assumed conversion of all dilutive potential ordinary shares Employees’ compensation - 194 Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares 834,886 $ 178,890 4.67 $ For theyear ended December31,2023 2024 2023 Acquisition of property, plant and equipment 392,967 $ 372,144 $ Add: Beginning balance of notes payable 37,206 72,188 Beginning balance of payable on equipment (listed as “Other payables”) 8,135 31,125 Less: Ending balance of notes payable 18,509) ( 37,206) ( Ending balance of payable on equipment (listed as “Other payables”) 6,648) ( 8,135) ( Capitalised interest 2,338) ( 374) ( Cash paid for acquisition of property, plant and equipment 410,813 $ 429,742 $ For the years ended December 31, 2024 2023 (1) Write-off of accounts receivable 312 $ 20 $ (2) Inventories transferred to property, plant and equipment 7,108 $ 8,217 $ (3) Prepayments for equipment transferred to property, plant and equipment 82,728 $ 293,208 $ Forthe years endedDecember31,	(29)Supplemental cash flow information A. Investing activities with partial cash payments: B. Operating and investing activities with no cash flow effects: Weighted average number of ordinary shares outstanding Earnings per Amount aftertax (sharesinthousands) share (indollars) Basic earnings per share Profit attributable to ordinary shareholders of the parent 834,886 $ 178,696 4.67 $ Diluted earnings per share Profit attributable to ordinary shareholders of the parent 834,886 $ 178,696 Assumed conversion of all dilutive potential ordinary shares Employees’ compensation - 194 Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares 834,886 $ 178,890 4.67 $ For theyear ended December31,2023 2024 2023 Acquisition of property, plant and equipment 392,967 $ 372,144 $ Add: Beginning balance of notes payable 37,206 72,188 Beginning balance of payable on equipment (listed as “Other payables”) 8,135 31,125 Less: Ending balance of notes payable 18,509) ( 37,206) ( Ending balance of payable on equipment (listed as “Other payables”) 6,648) ( 8,135) ( Capitalised interest 2,338) ( 374) ( Cash paid for acquisition of property, plant and equipment 410,813 $ 429,742 $ For the years ended December 31, 2024 2023 (1) Write-off of accounts receivable 312 $ 20 $ (2) Inventories transferred to property, plant and equipment 7,108 $ 8,217 $ (3) Prepayments for equipment transferred to property, plant and equipment 82,728 $ 293,208 $ Forthe years endedDecember31,
	2024 312 $ 7,108 $ 82,728 $	2023
		20 $ 8,217 $ 293,208 $

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(30) Changes in liabilities from financing activities

At January 1, 2024 Changes in cash flow from financing activities Changes in other non-cash items At December 31, 2024 At January 1, 2023 Changes in cash flow from financing activities Changes in other non-cash items At December 31, 2023	Short-term borrowings Leaseliabilities 800,000 $ 245,886 $ 690,000) ( 24,828) ( - 6,397 110,000 $ 227,455 $ Short-term borrowings Lease liabilities 1,350,003 $ 257,901 $ 550,003) ( 23,474) ( - 11,459 800,000 $ 245,886 $	Long-term borrowings (including current portion)	Long-term borrowings (including current portion)	Guarantee depositsreceived	Guarantee depositsreceived	Total 1,340,185 $ 777,382) ( 6,397 569,200 $ Total
		282,000 $ 59,027) ( - 222,973 $ Long-term borrowings (including current portion)		12,299 $ 3,527) ( - 8,772 $ Guarantee deposits received
			182,000 $ 100,000 - 282,000 $		411 $ 11,888 - 12,299 $	1,790,315 $ 461,589) ( 11,459 1,340,185 $

7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and relationship

Names of related parties Relationship with the Group We Can Medicines Co., Ltd. (We Can) Associate Taiwan Biosim Co., Ltd. (Biosim) Associate Geneferm Biotechnology Co., Ltd. (Geneferm) Associate Sun You Biotech Pharm Co., Ltd. Other related party (The manager of (Sun You) the Company is Sun You’s director) Fan Dao Nan Foundation (Fan Dao Nan) Other related party (The corporate director of the Company)

(2) Significant related party transactions

A. Sales of goods

nificant related party transactions Sales of goods
Associates Other related parties	For theyears ended December31,
	2024 130,427 $ 20,920 151,347 $	2023
		116,118 $ 21,308
		137,426 $

Prices of goods sold to related parties are determined each time when delivering goods. Terms of transactions are similar with those to third parties, which is cash payment in 2 months after billing, or to obtain cheques with a maturity of 4 ～ 6 months upon billing.

~67~

B. Purchases of goods

Purchases of goods
		For theyears ended		December31,
		2024		2023
Associates	$	52,097	$	46,451
Other related parties		8,473		5,284
	$	60,570	$	51,735

Goods are purchased based on the price lists in force and terms that would be available to regular suppliers. Payment terms are 1 ～ 4 months after monthly billing.

C. Equity transactions

In December 2024, the Group’s associate, Taiwan Biosim Co., Ltd., handled a cash capital increase, and the Group subscribed the shares proportionately to its ownership amounting to $24,950, which had been fully settled.

D. Other expenses

and the Group subscribed the shares proportionately had been fully settled. Other expenses	to its ownership amounting to $24,950, which	to its ownership amounting to $24,950, which
Advertisement expenses: Associates Miscellaneous expenses: Associates Other related parties	2024 2023 1,895 $ 1,167 $ 28,685 $ 38,296 $ 75 1 28,760 $ 38,297 $ Forthe years endedDecember31,
		1,167 $
		38,296 $ 1
		38,297 $

E. Other income

Other income
Ending balance of goods sold Associates Other related parties Receivables from related parties: Associates Other related parties	2024 2023 2,627 $ 1,372 $ 1,488 337 4,115 $ 1,709 $ For theyears ended December31, December31,2024 December31,2023 29,893 $ 31,698 $ 7,606 6,899 37,499 $ 38,597 $
		1,372 $ 337
		1,709 $
		December31,2023
		31,698 $ 6,899
		38,597 $

F. Ending balance of goods sold

The receivables from related parties arise mainly from sales transactions. The receivables are unsecured in nature and bear no interest. There are no provisions held against receivables from related parties.

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G. Other receivables

G.	Other receivables
H.	Ending balance of goods purchased December31,2024 Associates 285 $ Other related parties 2 287 $ December 31, 2024 Payables to related parties: Associates 30,349 $ Other related parties 2,940 33,289 $	December31,2023 4,090 $ -
		4,090 $
		December31,2023 33,389 $ 2,268
		35,657 $

The payables to related parties arise mainly from purchase transactions. The payables bear no interest.

I. Other payables

Associates

December	31, 2024	December	31, 2023
$	9,806	$	3,447

－ J. Lease transactions lessee

• (a) The Group leases land and buildings from Fan Dao Nan and We Can. Rental contracts are made for the periods from October 1, 2016 to September 30, 2027 and April 1, 2021 to March 31, 2026, respectively. Rents are paid quarterly and monthly.

• (b) As of December 31, 2024 and 2023, the carrying amount of right-of-use assets were $3,095 and $4,852, respectively.

• (c) As of December 31, 2024 and 2023, the carrying amount of lease liability were $3,194 and $4,971, respectively. The Group recognised interest expense amounting to $53 and $77 (listed as ‘Finance costs’) for the years ended December 31, 2024 and 2023, respectively.

(3) Key management compensation

Key management compensation
Salaries and other short-term employee benefits	For theyears ended December31,
	2024 50,756 $	2023
		43,795 $

~69~

8. PLEDGED ASSETS

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

==> picture [504 x 210] intentionally omitted <==

----- Start of picture text -----

Book value
Pledged asset December 31, 2024 December 31, 2023 Purposes
Time deposits (Note 1) $ 8,000 $ 8,000 Performance guarantees
Land (Note 2) 297,406 296,940 Short-term and long-term
borrowings
Buildings-net (Note 2) 327,836 335,971 Short-term and long-term
borrowings
Machinery-net (Note 2) 8,993 12,073 Long-term borrowings
Other equipment-net 110 110 Long-term borrowings
(Note 2)
Construction in progress
(Note 2) 71,179 110,519 Long-term borrowings
$ 713,524 $ 763,613
----- End of picture text -----

(Note 1) Listed as ‘Financial assets at amortised cost - current’.

(Note 2) Listed as ‘Property, plant and equipment’.

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT

COMMITMENTS

As of December 31, 2024 and 2023, the balances for contracts that the Group entered into for the purchase of property, plant and equipment, but not yet due were $338,609 and $89,860, respectively.

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENT AFTER THE BALANCE SHEET DATE

None.

12. OTHERS

(1) Capital management

The Group’s objectives when managing capital are to safeguard the Group’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 Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

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(2) Financial instruments

A. Financial instruments by category

ncial instruments Financial instruments by category
Financial assets Financial assets at fair value through profit or loss Financial assets mandatorily measured at fair value through profit or loss Financial assets at fair value through other comprehensive income Designation of equity instruments Financial assets at amortised cost Cash and cash equivalents Financial assets at amortised cost Notes receivable Accounts receivable Other receivables Guarantee deposits paid Financial liabilities Financial liabilities at amortised cost Short-term borrowings Notes payable Accounts payable Other payables Refund liabilities Long-term borrowings (including current portion) Guarantee deposits received Lease liabilities	December31,2024 168,627 $ 508,242 $ 1,520,128 $ 134,500 283,668 1,039,155 16,567 28,783 3,022,801 $ 110,000 $ 360,766 242,304 573,375 320 222,973 8,772 1,518,510 $ 227,455 $	December31,2023
		194,895 $ 347,098 $ 2,036,743 $ 60,500 286,544 976,208 155,671 44,818 3,560,484 $ 800,000 $ 373,840 269,148 525,591 - 282,000 12,299 2,262,878 $ 245,886 $

B. Risk management policies

(a) The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, price risk and interest rate risk), credit risk and liquidity risk. To minimise any adverse effects on the financial performance of the Group, derivative financial instruments may be used to hedge certain risk.

(b) Risk management is carried out by a central treasury department (Group treasury) under policies approved by the Board of Directors. Group treasury identifies, evaluates and hedges financial risks in close cooperation with the Group’s operating units. The Board 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.

~71~

• C. Significant financial risks and degrees of financial risks

• (a) Market risk

Foreign exchange risk

• i. The Group operates internationally and is exposed to foreign exchange risk arising from the transactions of the Group used in various functional currencies, primarily with respect to the USD, EUR, JPY and RMB. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities.

• ii. The Group has certain sales and purchases denominated in USD and other foreign currencies. Changes in market exchange rates would affect the fair value. However, the payment and collection periods of asset and liability positions in foreign currencies are close, market risk can be offset. The Group does not expect significant interest rate risk.

• iii.The Group has certain investments in foreign operations, whose net assets are exposed to foreign currency translation risk. However, the net investments of foreign operations are strategic investments, thus the Group does not hedge the investments.

• iv. The Group’s businesses involve some non-functional currency operations (the Company’s and certain subsidiaries’ functional currency: NTD; other certain subsidiaries’ functional currency: USD, PHP, VND and RMB). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

(Foreign currency: functional currency) Financial assets Monetary items USD: NTD EUR: NTD JPY: NTD RMB: NTD Financial liabilities Monetary items USD: NTD		December31,2024	December31,2024
		Foreign currency amount (In thousands) 20,330 $ 938 321,818 5,005 382	Exchange rate 32.79 34.14 0.2099 4.478 32.79	Bookvalue
				666,621 $ 32,023 67,550 22,412 12,526

~72~

==> picture [433 x 255] intentionally omitted <==

----- Start of picture text -----

December 31, 2023
Foreign currency
amount
(In thousands) Exchange rate Book value
(Foreign currency:
functional currency)
Financial assets
Monetary items
USD: NTD $ 47,888 30.71 $ 1,470,640
EUR: NTD 231 33.98 7,849
JPY: NTD 91,306 0.2172 19,832
RMB: NTD 14,896 4.327 64,455
Financial liabilities
Monetary items
USD: NTD 175 30.71 5,374
JPY: NTD 5,658 0.2172 1,229
----- End of picture text -----

With regard to sensitivity analysis of foreign currency exchange rate risk, if the exchange rates of NTD to all foreign currencies had appreciated/depreciated by 1%, with all other factors remaining constant, the Group’s net income for the years ended December 31, 2024 and 2023 would have increased/decreased by $6,209 and $12,449, respectively.

• v. Total net exchange gain, including realised and unrealised, arising from significant foreign exchange variation on the monetary items held by the Group for the years ended December 31, 2024 and 2023 amounted to $86,853 and $5,617, respectively.

Price risk

• i. The Group’s equity securities, which are exposed to price risk, are the held financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income. To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Group.

• ii. The Group’s investments in equity securities comprise shares and open-end funds issued by the domestic companies. The prices of equity securities would change due to the change of the future value of investee items. If the prices of these equity securities had increased/decreased by 1% with all other variables held constant, post-tax profit for the years ended December 31, 2024 and 2023 would have increased/decreased by $1,883 and $2,050, respectively, as a result of gains/losses on equity securities classified as at fair value through profit or loss. Other components of equity would have increased/decreased by $4,034 and $3,265, respectively, as a result of other comprehensive income on equity investments classified as at fair value through other comprehensive income.

~73~

Cash flow and fair value interest rate risk

• i. The Group’s main interest rate risk arises from long-term and short-term borrowings with variable rates, which expose the Group to cash flow interest rate risk. During the years ended December 31, 2024 and 2023, the Group’s borrowings at variable rate were denominated in the NTD and EUR.

• ii. With regard to sensitivity analysis of interest rate risk, if interest rates on borrowings at that date had been 1% higher/lower with all other variables held constant, post-tax profit for the years ended December 31, 2024 and 2023 would have been $121 and $203 lower/higher, respectively, mainly as a result of higher/lower interest expense on floating rate borrowings.

• (b) Credit risk

• i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms.

• ii. The Group manages its credit risk taking into consideration the entire company’s concern. According to the Group’s credit policy, each local entity in the Group is responsible for managing and analysing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the Board of Directors. The utilisation of credit limits is regularly monitored.

• iii. In line with credit risk management procedure, payment reminders are sent as the contract payments are past due, whereby the default occurs when the contract payments are past due over certain period of time, and recourse procedures are initiated. However, the Group will continue executing the recourse procedures to secure their rights.

• iv. The Group classifies customer’s notes and accounts receivable in accordance with credit rating of customer. The Group applies the modified approach using provision matrix to estimate expected credit loss under the provision matrix basis. The Group used the forecastability of conditions to adjust historical and timely information to assess the default possibility of notes and accounts receivable, whereby rate ranging from 0.01% to 100% are applied to the provision matrix. Movements in relation to the Group applying the modified approach to provide loss allowance for notes and accounts receivable are as follows:

~74~

			For theyear ended December	For theyear ended December	For theyear ended December	31,	2024
		Notes	receivable	Accountsreceivable			Total
Beginning balance	$		237	$	15,368	$	15,605
Provision for impairment			191		11,332		11,523
Write-off			-	(	312)	(	312)
Ending balance	$		428	$	26,388	$	26,816
			Forthe yearendedDecember			31,	2023
		Notes	receivable	Accountsreceivable			Total
Beginning balance	$		256	$	24,421	$	24,677
Reversal of impairment	(		19)	(	9,048)	(	9,067)
Write-off			-	(	20)	(	20)
Effect of foreign exchange			-		15		15
Ending balance	$		237	$	15,368	$	15,605

(c) Liquidity risk

• i. Cash flow forecasting is performed in the operating entities of the Group and aggregated by Group treasury. Group treasury monitors rolling forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Group does not breach borrowing limits or covenants on any of its borrowing facilities.

• ii. Surplus cash held by the Group over and above balance required for working capital management are transferred to the Group treasury. Group treasury invests surplus cash in interest bearing current accounts, time deposits and marketable securities, choosing instruments with appropriate maturities or sufficient liquidity to provide sufficient headroom as determined by the abovementioned forecasts.

• iii. The Group has the following undrawn borrowing facilities:

Floating rate: Expiring within one year Expiring beyond one year	December31,2024 3,153,210 $ 127,000 3,280,210 $	December31,2023
		3,638,970 $ 47,000
		3,685,970 $

• iv. The table below analyses the Group’s non-derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date:

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Within December31,2024 1year Short-term borrowings 111,227 $ Notes payable 360,766 Accounts payable 242,304 Other payables 573,375 Lease liabilities 27,393 Refund liabilities 320 Long-term borrowings 62,853 Guarantee deposits received 8,535 Within December31,2023 1 year Short-term borrowings 802,624 $ Notes payable 373,840 Accounts payable 269,148 Other payables 525,591 Lease liabilities 25,564 Long-term borrowings 63,790 Guarantee deposits received 3	Between 1 and2years - $ - - - 23,186 - 62,821 237 Between 1 and2years - $ - - - 24,402 62,733 3,566	Between 2 and 5 years - $ - - - 53,298 - 26,169 - Between 2 and 5 years - $ - - - 55,967 81,863 8,730	Over 5 years - $ - - - 149,567 - 97,945 - Over 5 years
			- $ - - - 157,814 105,025 -

• v. For non-derivative financial liabilities, the Group does not expect the timing of occurrence of the cash flows estimated through the maturity date analysis will be significantly earlier, nor expect the actual cash flow amount will be significantly different.

(3) Fair value information

• A. 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 Group’s investment in beneficiary certificates and 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.

• Level 3: Unobservable inputs for the asset or liability. The Group’s investment in certain equity instruments without active market is included.

• B. The carrying amounts of the Group’s financial instruments not measured at fair value (including cash and cash equivalents, financial assets at amortised cost, notes receivable, accounts receivable, other receivables, guarantee deposits paid, short-term borrowings, notes payable, accounts payable, other payables, long-term borrowings(including current portion) and guarantee

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deposits received) are approximate to their fair values.

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

• (a)The related information on the nature of the assets is as follows:

December31,2024 Recurring fair value measurements Financial assets at fair value through profit or loss Equity securities and beneficiary certificates Financial assets at fair value through other comprehensive income Equity securities December 31, 2023 Recurring fair value measurements Financial assets at fair value through profit or loss Equity securities and beneficiary certificates Financial assets at fair value through other comprehensive income Equity securities	Level 1 156,277 $ 390,027 546,304 $ Level 1 178,290 $ 243,007 421,297 $	Level 2 - $ - - $ Level 2 - $ - - $	Level3 12,350 $ 118,215 130,565 $ Level3 16,605 $ 104,091 120,696 $	Total 168,627 $ 508,242
				676,869 $
				Total
				194,895 $ 347,098
				541,993 $

• (b) The methods and assumptions the Group used to measure fair value are as follows:

• i. The instruments that the Group used market quoted prices as their fair values (that is, Level

  • 1) are listed below by characteristics:

Market quoted price	Listed stocks Closing price	Open-end fund
		Net asset value

• ii. 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. The fair value of financial instruments measured by using valuation techniques can be referred to current fair value of instruments with similar terms and characteristics in substance, discounted cash flow method or other valuation methods, including calculated by applying model using market information available at the consolidated balance sheet date.

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• iii.The output of valuation model is an estimated value and the valuation technique may not be able to capture all relevant factors of the Group’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 Group’s management policies and relevant control procedures relating to the valuation models used for fair value measurement, management believes adjustment to valuation is necessary in order to reasonably represent the fair value of financial and non-financial instruments at the consolidated balance sheet. The inputs and pricing information used during valuation are carefully assessed and adjusted based on current market conditions.

• D. There was no transfer between Level 1 and Level 2 in 2024 and 2023.

• E. The following table presents the changes in Level 3 instruments in 2024 and 2023:

		Forthe years ended	Forthe years ended	December	31,
		2024		2023
At January 1	$	120,696	$	112,239
Purchase		20,000			-
Disposal	(	1,181)			-
Recognised in profit or loss	(	3,073)			1,025
Recognised in other comprehensive (loss) income	(	5,877)			7,432
At December 31	$	130,565	$	120,696

• F. For the years ended December 31, 2024 and 2023, there was no transfer from or to Level 3.

• G.5Financial segment is in charge of valuation procedures for fair value measurements being categorised within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions, confirming the resource of information is independent, reliable and in line with other resources and represented as the exercisable price, and frequently calibrating valuation model, performing back-testing, updating inputs used to the valuation model and making any other necessary adjustments to the fair value.

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• H. The following is the qualitative information of significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement:

Non-derivative equity instrument: Unlisted stocks Unlisted stocks Unlisted stocks Non-derivative equity instrument: Unlisted stocks Unlisted stocks	Fair value at Valuation Significant December31,2024 technique unobservable input 92,873 $ Market comparable companies Discount for lack of marketability 22,180 Discounted cash flow Weighted-average cost of capital 15,512 Net asset value Not applicable Fair value at Valuation Significant December31,2023 technique unobservable input 103,870 $ Market comparable companies Discount for lack of marketability 16,826 Net asset value Not applicable	Range (weighted Relationship of average) inputs to fairvalue 30% The higher the discount for lack of marketability, the lower the fair value 15% The higher the Weighted-average cost of capital, the lower the fair value — Not applicable Range (weighted Relationship of average) inputs to fairvalue 30% The higher the discount for lack of marketability, the lower the fair value — Not applicable	Relationship of inputs to fairvalue

• I. The Group has carefully assessed the valuation models and assumptions used to measure fair value ; therefore, the fair value measurement is reasonable. However, use of different valuation models or assumptions may result in different measurement. The following is the effect on profit or loss or on other comprehensive income from financial assets categorised within Level 3 if the inputs used to valuation models have changed:

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Input Financial assets Equity instrument Discount for lack of marketability Equity instrument Weighted- average cost of capital Input Financial assets Equity instrument Discount for lack of marketability	Change ± 3% ± 5% Change ± 3%	Favourable Unfavourable Favourable Unfavourable change change change change 55 $ 55) ($ 3,925 $ 3,925) ($ - $ - $ 1,060 $ 960) ($ December31,2024 Recognised inprofit or loss Recognised in other comprehensive income Favourable Unfavourable Favourable Unfavourable change change change change 179 $ 179) ($ 4,272 $ 4,272) ($ December31,2023 Recognised inprofit or loss Recognised in other comprehensive income
		Favourable change 179 $ (

13. SUPPLEMENTARY DISCLOSURES

(Only 2024 information is disclosed in accordance with the current regulatory requirements.)

• (1) Significant transactions information

• A. Loans to others: Refer to table 1.

• B. Provision of endorsements and guarantees to others: None.

• C. Holding of marketable securities at the end of the year (not including subsidiaries, associates and joint ventures): Refer to table 2.

• D. Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company’s paid-in capital or more: None.

• E. Acquisition of real estate reaching $300 million or 20% of paid-in capital or more: None.

• F. Disposal of real estate reaching $300 million or 20% of paid-in capital or more: None.

• G. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more: None.

• H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: None.

• I. Trading in derivative instruments undertaken during the reporting periods: None.

• J. Significant inter-company transactions during the reporting periods: Refer to table 3.

• (2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Refer to table 4.

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(3) Information on investments in Mainland China

• A. Basic information: Refer to table 5.

• B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: None.

• (4) Major shareholders information

Major shareholders information: Refer to table 6.

14. SEGMENT INFORMATION

(1) General information

Management has determined the reportable operating segments based on the reports reviewed by the chief operating decision-maker that are used to make strategic decisions. There is change in the basis for formation of entities and division of segments in the Group or in the measurement basis for segment information during this year in accordance with global marketing expansion of the Group.

(2) Measurement of segment information

The chief operating decision maker evaluates the performance of operating segments based on pre-tax income. Accounting policies applied on the operating segments are consistent with the significant accounting policies applied in the preparation of the consolidated financial statements set out in Note 4.

(3) Information about segment profit or loss, assets and liabilities

The segment information provided to the chief operating decision-maker for the reportable segments is as follows:

is as follows:
Medicine Segment revenue 3,188,897 $ Revenue from internal customers 90,795) ( Revenue from external customers 3,098,102 Segment profit before income tax 1,020,394 Segment assets 4,064,285 Segment liabilities 922,260	For the year ended December 31, 2024
	Active Pharmaceutical Dietarysupplement Ingredients 2,181,567 $ 1,377,990 $ 93,175) ( 47,878) ( 2,088,392 1,330,112 248,153 506,050 3,210,946 3,137,177 927,500 326,954	Others 314,204 $ 41,587) ( 272,617 45,999 763,137 22,763	Total
			7,062,658 $ 273,435) ( 6,789,223 1,820,596 11,175,545 2,199,477

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For the year ended December 31, 2023

Segment revenue Revenue from internal customers Revenue from external customers Segment profit before income tax Segment assets Segment liabilities	Medicine 2,950,820 $ 88,381) ( 2,862,439 960,772 3,960,531 1,303,327	Dietary Active Pharmaceutical supplement Ingredients 2,026,185 $ 1,179,913 $ 89,706) ( 31,981) ( 1,936,479 1,147,932 302,489 332,005 3,548,070 3,101,462 1,044,227 621,018	Others 349,742 $ 56,824) ( 292,918 49,533 578,661 82,815	Total
				6,506,660 $ 266,892 (
				6,239,768 1,644,799 11,188,724 3,051,387

(4) Reconciliation for segment income (loss), assets and liabilities

• A. Sales between segments are carried out at arm’s length. The revenue from external customers reported to the chief operating decision-maker is measured in a manner consistent with that in the consolidated statement of comprehensive income. A reconciliation of reportable segment income before income tax to the profit before income tax is provided as follows:

		Forthe years endedDecember31,	Forthe years endedDecember31,	Forthe years endedDecember31,
		2024		2023
Reportable segment income before income tax	$	1,774,597	$	1,595,266
Other segments profit before income tax		45,999		49,533
Inter-segment transactions	(	193,237)	(	206,932)
Profit before income tax	$	1,627,359	$	1,437,867

• B. The amounts provided to the chief operating decision maker with respect to total assets and total liabilities are measured in a manner consistent with that of the financial statements. No reconciliation is needed.

(5) Information on product and service

Revenue from external customers is mainly from manufacturing, research and development, sale

and wholesale of various medicine, dietary supplement and medical products. Details of revenue are as follows:

are as follows:
Revenue from sales of medicine Revenue from sales of dietary supplement Revenue from sales of Active Pharmaceutical Ingredients Revenue from rendering of services Others	Forthe years endedDecember31,
	2024 3,098,102 $ 2,088,392 1,330,112 2,029 270,588 6,789,223 $	2023
		2,862,439 $ 1,936,479 1,147,932 1,618 291,300 6,239,768 $

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(6) Geographical information

Geographical information for the years ended December 31, 2024 and 2023 is as follows:

Taiwan Japan Others (individually less than 4%)		Revenue (Note1) Non-current assets (Note 2) Revenue (Note 1) Non-current assets (Note2) 5,311,661 $ 4,632,629 $ 4,854,650 $ 4,446,611 $ 437,033 - 300,280 - 1,040,529 137,871 1,084,838 139,399 6,789,223 $ 4,770,500 $ 6,239,768 $ 4,586,010 $ Forthe years endedDecember31, 2024 2023	Revenue (Note1) Non-current assets (Note 2) Revenue (Note 1) Non-current assets (Note2) 5,311,661 $ 4,632,629 $ 4,854,650 $ 4,446,611 $ 437,033 - 300,280 - 1,040,529 137,871 1,084,838 139,399 6,789,223 $ 4,770,500 $ 6,239,768 $ 4,586,010 $ Forthe years endedDecember31, 2024 2023	Revenue (Note1) Non-current assets (Note 2) Revenue (Note 1) Non-current assets (Note2) 5,311,661 $ 4,632,629 $ 4,854,650 $ 4,446,611 $ 437,033 - 300,280 - 1,040,529 137,871 1,084,838 139,399 6,789,223 $ 4,770,500 $ 6,239,768 $ 4,586,010 $ Forthe years endedDecember31, 2024 2023
				4,446,611 $ - 139,399 4,586,010 $

(Note 1) Revenue is based on where the clients are located.

(Note 2) Non-current assets include property, plant and equipment, right-of-use assets, intangible assets, prepayments for equipment, and certain other non-current assets.

(7) Major customer information

The revenue from each customer of the Group for the years ended December 31, 2024 and 2023 did not reach 10% of consolidated operating revenue.

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Table 1

Expressed in thousands of NTD

STANDARD CHEM. & PHARM. CO., LTD. AND SUBSIDIARIES

Loans to others

For the year ended December 31, 2024

Number	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance	Ending balance (Note 2)	Actual amount drawn down	Interest rate	Nature of loan (Note 1)	Amount of transactions with the borrower	Reason for short-term financing	Allowance for doubtful accounts	Collateral	Collateral	Limit on loans granted to a singleparty	Ceiling on total loans granted	Note
													Item	Value
1 2	Standard Pharmaceutical Co., Ltd. Jiangsu Standard Biotech Pharmaceutical Co., Ltd.	Jiangsu Standard Biotech Pharmaceutical Co., Ltd. Jiangsu Standard-Dia Biopharma Co., Ltd.	Other receivables Yes Other receivables Yes		98,370 $ 9,180	98,370 $ 9,180	98,370 $ 9,180	1.20% 1.20%	2 2	- -	Operating capital - $ Operating capital 9,180		－ －	- $ -	336,977 $ 6,563	336,977 $ 7,875	(Notes 3) (Notes 3) (Notes 4)

Note 1: The code represents the nature of financing activities as follows:

(1) Trading partner.

(2) Short-term financing.

Note 2: The ending balance is the credit limit approved by the Board of Directors. Note 3: Calculation of limit on loans granted to a single party and ceiling on total loans granted:

• (1) Limit on loans granted to a single party:

(a) For the companies having business relationship with the Company, limit on loans granted to a single party is the higher value of purchasing and selling during current or latest year on the year of financing.

(b) For short-term financing, limit on loans granted to a single party is 5% of the Company’s net assets based on the latest audited consolidated financial statements.

(c) Limit on loans granted by Standard Pharmaceutical Co., Ltd. to a single party is 200% of the creditor’s net assets based on the latest audited or reviewed consolidated financial statements.

(d) Limit on loans granted by Jiangsu Standard Biotech Pharmaceutical to a single party is 25% of the creditor’s net assets based on the latest audited or reviewed consolidated financial statements. (2) Ceiling on total loans granted to a single party:

(a) Ceiling on total loans granted by Standard Pharmaceutical Co., Ltd. to single party is 200% of the creditor’s net assets.

(b) Ceiling on total loans granted by Jiangsu Standard Biotech Pharmaceutical to single party is 30% of the creditor’s net assets.

(3) For short-term financing, ceiling on total loans granted to all direct or indirect wholly-owned domestic and foreign subsidiaries of the Company is not limited to 40% of the creditors’ net assets.

Note 4: As certain ending balance of loans from Jiangsu Standard Biotech Pharmaceutical Co., Ltd. to Jiangsu Standard-Dia Biopharma Co., Ltd. (“Jiangsu Standard-Dia”) has exceeded the original maturity date and it is

Note 4: expected that Jiangsu Standard-Dia will be unable to repay the remaining amounts. Jiangsu Standard Biotech Pharmaceutical Co., Ltd. has applied to the court to initiate bankruptcy liquidation proceedings against Jiangsu Standard-Dia and Note 4: fully recognised allowance for doubtful accounts and established an improvement plan for regular follow-up.

Note 5: Foreign currencies were translated into New Taiwan Dollars with exchange rate as of December 31, 2024 as follows: USD: NTD 1:32.79 and RMB: NTD 1:4.478.

Table 1 page 1

Table 2

Expressed in thousands of NTD

STANDARD CHEM. & PHARM. CO., LTD. AND SUBSIDIARIES

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) December 31, 2024

Securities held by Marketable securities(Note 1) Relationship with the securities issuer General ledger account (Note 2)	Number of shares	As	of December 31,2024	Note
		Book value	Ownership (%) Fair value
Standard Chem. & Pharm. Co., Ltd. Stocks: Original BioMedicals Co., Ltd. － 2 TaiwanJ Pharmaceuticals Co., Ltd. － 2 NCKU Venture Capital Co., Ltd. － 3 NTU Innovation & Incubation Co., Ltd. － 3 HER-SING CO., LTD. The Company is HER-SING Co., Ltd.’s corporate director 4 Sun You Biotech Pharm Co., Ltd. The manager of the Company is Sun You Biotech Pharm Co., Ltd.’s director 4 Green Management International Co., Ltd. － 4 Kenda Pharmaceutical Co., Ltd. － 4 Rossmax International Ltd. － 4 EASYWELL BIOMEDICALS, INC. － 4 Chia Scheng International Co., Ltd. Beneficiary certificates: Taishin Ta-Chong Money Market Fund － 2 Taishin 1699 Money Market Fund － 2 Stocks: Sun You Biotech Pharm Co., Ltd. The manager of the Company is Sun You Biotech Pharm Co., Ltd.’s director 4 Stason Pharmaceuticals, Inc. － 4 MULTIPOWER ENTERPRISE CORP. Bonds with repurchase agreement: International Bills Finance Corporation － 1 Advpharma Inc. Beneficiary certificates: Mega Diamond Money Market Fund － 2 Taishin 1699 Money Market Fund － 2 UPAMC James Bond Money Market Fund － 2 Shin Kong US Harvest Balanced USD A － 2 Capital Money Market Fund － 2 Shin Kong Emerging Wealthy Nations Bond Fund A － 2 Yuanta/P-shares Taiwan Dividend Plus ETF － 2 Yuanta Taiwan High Dividend Low Volatility ETF － 2 UPAMC NYSE FANG+ ETF － 2 Cathay U.S. PHLX Semiconductor Sector ETF － 2	200,000 132,133 650,000 480,000 3,055,000 3,378,006 109,672 5,000,000 3,548,000 5,094,600 368,142 50,000 240,846 4,000,000 - 2,000,000 977,966 1,185,178 245,916 1,227,024 195,290 76,000 5,000 1,000 1,000	- $ 1,083 3,419 4,224 44,359 42,597 1,592 4,450 62,444 327,583 5,456 707 3,037 - 30,000 26,161 13,836 20,614 2,911 20,639 1,862 2,788 266 105 46	0.30% - $ 0.16% 1,083 4.17% 3,419 3.76% 4,224 17.71% 44,359 18.13% 42,597 5.14% 1,592 19.42% 4,450 4.18% 62,444 4.18% 327,583 - 5,456 - 707 1.29% 3,037 13.02% - - 30,000 - 26,161 - 13,836 - 20,614 - 2,911 - 20,639 - 1,862 - 2,788 - 266 - 105 - 46	－ － － － － － － － － － － － － － － － － － － － － － － － －

Table 2 page 1

Securities held by Marketable securities(Note 1) Relationship with the securities issuer General ledger account (Note 2)	Number of shares	As	of December 31,2024	Note
		Book value	Ownership (%) Fair value
Advpharma Inc. Cathay MSCI Taiwan ESG Sustainability High Dividend Yield ETF － 2 SinoPac Taiwan Superior Dividend Highlight Stocks ETF － 2 KGI Taiwan Premium Selection High Dividend 30 ETF － 2 United Taiwan High Dividend Recovery 30 ETF － 2 Capital Tip Customized Taiwan Select High Dividend ETF － 2 Taishin TIP Taiwan ESG HDSMC ETF － 2 UPAMC Taiwan High Dividend Momentum ETF － 2 Yuanta Taiwan Value High Dividend ETF － 2 Capital Taiwan Tech High Dividend and Growth ETF － 2 Yuanta US 20+ Year AAA-A Corporate Bond ETF － 2 Yuanta U.S. Treasury 20+ Year Bond ETF － 2 Cathay U.S. Treasury 20+ Year Bond ETF － 2 United 15+ Years BBB US Corporate ETF － 2 Stocks: Taiwan Cement Corporation － 2 UNI-PRESIDENT ENTERPRISES CORP. － 2 Taisun Enterprise Co., Ltd. － 2 Lien Hwa Industrial Holdings Corp. － 2 Cathay Consolidated, INC. － 2 GTM HOLDINGS CORPORATION － 2 Yi Jinn Industrial Co., Ltd. － 2 Awea Mechantronic Co., Ltd. － 2 Walsin Lihwa Corporation － 2 Dah San Electric Wire & Cable Corp. － 2 China Steel Corporation － 2 Tung Ho Steel Enterprise Corp. － 2 MAYER STEEL PIPE CORPORATION － 2 Hsin Kuang Steel Co., Ltd. － 2 United Microelectronics Corp. － 2 HON HAI PRECISION IND. CO., LTD. － 2 Compal Electronics, Inc. － 2 ACER INCORPORATED － 2 FOXCONN TECHNOLOGY CO., LTD. － 2 INVENTEC CORPORATION － 2 GIGA-BYTE TECHNOLOGY CO., LTD. － 2 REALTEK SEMICONDUCTOR CORPORATION － 2	6,000 16,000 15,000 24,000 32,000 78,000 7,000 16,000 81,000 4,000 3,000 3,000 3,000 15,000 4,000 6,000 21,000 1,199 5,000 11,100 7,000 18,000 5,000 14,000 4,000 2,000 23,000 15,000 11,000 4,000 66,000 4,000 4,000 1,000 1,000	133 $ 249 369 553 748 1,183 99 151 749 135 86 89 30 476 324 118 1,065 120 168 218 221 427 276 275 272 56 1,063 646 2,024 151 2,627 298 200 272 568	- 133 $ - 249 - 369 - 553 - 748 - 1,183 - 99 - 151 - 749 - 135 - 86 - 89 - 30 - 476 - 324 - 118 - 1,065 - 120 - 168 - 218 0.01% 221 - 427 - 276 - 275 - 272 - 56 0.01% 1,063 - 646 - 2,024 - 151 - 2,627 - 298 - 200 - 272 - 568	－ － － － － － － － － － － － － － － － － － － － － － － － － － － － － － － － － － －

Table 2 page 2

Securities held by Marketable securities(Note 1) Relationship with the securities issuer General ledger account (Note 2)	Number of shares	As	of December 31,2024	Note
		Book value	Ownership (%) Fair value
Advpharma Inc. QUANTA COMPUTER INC. － 2 CHICONY ELECTRONICS CO. LTD. － 2 SUNREX TECHNOLOGY CORPORATION － 2 SUNONWEALTH ELECTRIC MACHINE INDUSTRY CO., LTD. － 2 KING YUAN ELECTRONICS CO., LTD. － 2 K LASER TECHNOLOGY INC. － 2 Lelon Electronics Corp. － 2 CATCHER TECHNOLOGY CO., LTD. － 2 Kindom Development Co., LTD. － 2 DA-CIN CONSTRUCTION CO., LTD. － 2 KEDGE CONSTRUCTION CO., LTD. － 2 EVERGREEN MARINE CORP. (TAIWAN) LTD. － 2 Yang Ming Marine Transport Corp. － 2 Aerospace Industrial Development Corporation － 2 CHANG HWA COMMERCIAL BANK, LTD. － 2 King’s Town Bank － 2 KGI Financial Holding Co., Ltd. － 2 E. SUN FINANCIAL HOLDING COMPANY, LTD. － 2 Yuanta Financial Holding Co., Ltd. － 2 MEGA FINANCIAL HOLDING COMPANY, LTD － 2 SinoPac Financial Holdings Company Limited － 2 Far Eastern Department Stores, Ltd. － 2 Test Research, Inc. － 2 NOVATEK MICROELECTRONICS CORPORATION － 2 DATA IMAGE CORPORATION － 2 Wistron Corporation － 2 Continental Holdings Corp. － 2 Dynamic Holding Co., Ltd. － 2 Pegatron Corporation － 2 Win Win Precision Technology Co., Ltd. － 2 TOPCO SCIENTIFIC CO., LTD. － 2 LUMAX INTERNATIONAL CORP., LTD. － 2 SUPREME ELECTRONICS CO., Ltd. － 2 TAIWAN HON CHUAN ENTERPRISE CO., LTD. － 2 Yulon Finance Corporation － 2 KINGSTATE ELECTRONICS CORP. － 2 Ardentec Corporation － 2	1,000 6,000 1,000 4,000 9,000 14,000 2,000 1,000 1,000 2,000 1,000 1,000 4,000 3,000 19,224 77,000 3,000 2,120 1,380 8,000 40,250 13,000 5,000 18,000 7,000 2,000 2,000 11,000 7,000 10,000 2,000 1,000 24,000 5,000 1,000 7,000 5,000	287 $ 912 61 390 1,003 280 163 194 51 107 69 225 303 135 343 3,904 52 57 47 310 922 292 610 9,036 320 208 60 673 643 227 560 114 1,423 737 104 297 266	- 287 $ - 912 - 61 - 390 - 1,003 0.01% 280 - 163 - 194 - 51 - 107 - 69 - 225 - 303 - 135 - 343 0.01% 3,904 - 52 - 57 - 47 - 310 - 922 - 292 - 610 - 9,036 0.01% 320 - 208 - 60 - 673 - 643 0.01% 227 - 560 - 114 - 1,423 - 737 - 104 0.01% 297 - 266	－ － － － － － － － － － － － － － － － － － － － － － － － － － － － － － － － － － － － －

Table 2 page 3

Securities held by Marketable securities(Note 1) Relationship with the securities issuer General ledger account (Note 2)	Number of shares	As	of December 31,2024	Note
		Book value	Ownership (%) Fair value
Advpharma Inc. Winstek Semiconductor Co., Ltd. － 2 TTY Biopharm Company Limited － 2 Value Valves Co., Ltd. － 2 LOYALTY FOUNDER ENTERPRISE CO., LTD. － 2 SINO-AMERICAN SILICON PRODUCTS INC. － 2 HIGHLIGHT TECH CORP. － 2 PLANET TECHNOLOGY CORPORATION － 2 YEN SUN TECHNOLOGY CORP － 2 INPAQ TECHNOLOGY CO., LTD. － 2 GlobalWafers Co., Ltd. － 2 Xxentria Technology Materials Co., Ltd. － 2 TaiwanJ Pharmaceuticals Co., Ltd. － 3 Syngen Biotech Co., Ltd. Stocks: NCKU Venture Capital Co., Ltd. － 3 Leeuwenhoek Laboratories Co. Ltd. － 4	1,000 7,000 4,000 4,000 6,000 6,000 5,000 8,000 2,000 38,000 20,000 25,203 650,000 2,000,000	112 $ 510 373 151 807 300 750 370 164 14,497 1,028 205 3,419 22,180	- 112 $ - 510 0.01% 373 - 151 - 807 0.01% 300 0.01% 750 0.01% 370 - 164 0.01% 14,497 0.01% 1,028 0.03% 205 4.17% 3,419 5.98% 22,180	－ － － － － － － － － － － － － － －

Note 1: Marketable securities in the table refer to stocks, beneficiary certificates and other related derivative securities as defined within the scope of International Financial Reporting Standard 9 ‘Financial Instruments’. Note 2: The general ledger account is classified into the following four categories:

1. Cash and cash equivalents

2. Financial assets at fair value through profit or loss - current

3. Financial assets at fair value through profit or loss - non-current

4. Financial assets at fair value through other comprehensive income - non-current

Note 3: Foreign currencies were translated into New Taiwan Dollars with exchange rate as of December 31, 2024 as follows: USD: NTD 1:32.79.

Table 2 page 4

• Significant inter company transactions during the reporting period For the year ended December 31, 2024

Table 3

Expressed in thousands of NTD

STANDARD CHEM. & PHARM. CO., LTD. AND SUBSIDIARIES

Transaction

Number (Note 2)	Companyname	Counterparty	Relationship (Note3)	General ledger account	Amount	Transaction terms	Percentage of consolidated total operatingrevenues or total assets(Note 4)
0 1 2 3	Standard Chem. & Pharm. Co., Ltd. Standard Pharmaceutical Co., Ltd. Syn-Tech Chem. & Pharm. Co., Ltd. Syngen Biotech Co., Ltd.	Syngen Biotech Co., Ltd. Souriree Biotech & Pharm. Co., Ltd. Syn-Tech Chem. & Pharm. Co., Ltd. Jiangsu Standard Biotech Pharmaceutical Co., Ltd. Standard Chem. & Pharm. Philippines, Inc. Jiangsu Standard Biotech Pharmaceutical Co., Ltd. Standard Chem. & Pharm. Co., Ltd. Jiangsu Standard Biotech Pharmaceutical Co., Ltd.	1 1 1 1 1 1 1 3 2 3	Purchases Accounts payable Purchases Purchases Accounts payable Other expenses Prepayments Other receivables Lease liabilities Sales	$ 66,689 ( 20,300) 80,342 33,104 ( 14,301) 14,652 16,137 98,491 14,317 ( 16,019)	1 ~ 4 month(s) after monthly billings. － 1 ~ 4 month(s) after monthly billings. 1 ~ 4 month(s) after monthly billings. － 1 ~ 4 month(s) after monthly billings. － － － 3 month(s) after monthly billings.	1% － 1% － － － － 1% － －

Note 1: As the amounts and counterparties of significant inter-company transactions are the same from the opposite transaction sides, no disclosure is required. Only transactions amounting to more than $10,000 are disclosed. Note 2: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:

(1) Parent company is ‘0’.

(2) The subsidiaries are numbered in order starting from ‘1’.

Note 3: Relationship between transaction company and counterparty is classified into the following three categories:

• (1) Parent company to subsidiary.

• (2) Subsidiary to parent company.

• (3) Subsidiary to subsidiary.

Note 4: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on ending balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transaction amount for the year to consolidated total operating revenues for statement of comprehensive income accounts.

Note 5: Foreign currencies were translated into New Taiwan Dollars with exchange rate as of December 31, 2024 as follows: USD: NTD 1:32.79 and RMB: NTD 1:4.478.

Table 3 page 1

Information on investees

For the year ended December 31, 2024

Table 4

Expressed in thousands of NTD

STANDARD CHEM. & PHARM. CO., LTD. AND SUBSIDIARIES

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held	as at December31,2024	as at December31,2024	Net profit (loss) of the investee for the year ended December31,2024	Investment income (loss) recognised for the year ended December31,2024	Note
				Balance as at December 31, 2024	Balance as at December 31, 2023	Number of shares	Ownership (%)	Bookvalue
Standard Chem. & Pharm. Co., Ltd.	Standard Pharmaceutical Co., Ltd. Chia Scheng International Co., Ltd. Standard Chem. & Pharm. Philippines, Inc. Inforight Technology Co., Ltd. Souriree Biotech & Pharm. Co., Ltd. Multipower Enterprise Corp. Advpharma Inc. Syngen Biotech Co., Ltd. Syn-Tech Chem. & Pharm. Co., Ltd. Ho Yao Biopharm Co., LTD.	Samoa Taiwan Philippines Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan	Research and development, trading, investment and other business of medical products Sale of various medical supplements Import and export of various medical products, medicine, supplements Wholesale of multi-function printers and information software Manufacturing of western medicine and retail and wholesale of various medicines Import and export of western medicine, nourishment and function food, processing, manufacturing and sale of food Research and development, manufacturing and sale of various medicine Research and development, manufacturing and sale of APIs, biopesticide, fertiliser and biochemical nutrition, sale of preventive medicine Manufacturing and sale of APIs, reagent, surfactant, Chinese, western, and veterinary medicinal products Research and development of new medicine	396,953 $ 161,356 12,340 5,000 41,871 293,063 525,933 330,203 720,941 46,800	396,953 $ 161,356 12,340 5,000 41,871 293,063 525,933 330,203 720,941 46,800	13,000,000 14,553,000 392,014 500,000 5,673,908 19,840,600 53,226,806 12,651,146 12,675,959 3,680,000	100.00 100.00 100.00 100.00 93.58 90.72 88.71 46.68 28.43 84.99	168,268 $ 16,473 1,517) ( 6,787 49,054 321,776 270,724 1,023,861 845,711 33,269	21,942) ($ 5,442 5,539) ( 1,038 5,597 2,788) ( 1,516) ( 240,207 393,246 11,787) (	22,163) ($ 5,334 5,539) ( 1,038 6,989 2,794) ( 1,281) ( 111,257 103,852 10,018) (	Subsidiary Subsidiary (Note 1) Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary (Note 2) Subsidiary (Note 3) Subsidiary

Table 4 page 1

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held	as at December31,2024	as at December31,2024	Net profit (loss) of the investee for the year ended December31,2024	Investment income (loss) recognised for the year ended December31,2024	Note
				Balance as at December 31, 2024	Balance as at December 31, 2023	Number of shares	Ownership (%)	Bookvalue
Standard Chem. & Pharm. Co., Ltd. Syngen Biotech Co., Ltd Advpharma Inc. Syn-Tech Chem. & Pharm. Co., Ltd.	Standard Chem. & Pharm. Vietnam Co., Ltd. We Can Medicines Co., Ltd. Taiwan Biosim Co., Ltd. Syngen Biotech International Sdn. Bhd. Jhan Shuo Biopharma Co., Ltd. GENEFERM BIOTECHNOLOGY CO., LTD. CNH Technologies Inc. Advpharma Inc. CNH Technologies Inc.	Vietnam Taiwan Taiwan Malaysia Taiwan Taiwan USA Taiwan USA	Import and export of various medicine Wholesale of various medicine Research and development of various medicine Research and development, manufacturing and sale of APIs and biochemical nutrition, sale of preventive medicine Manufacturing, wholesale and sale of western medicine Research and development, design, quantification, manufacturing and sale of microbial and edible mushroom medicine fermentation, herbal and vegetal functional products, fruit and vegetable fermentation concentrates and protein products, management of the aforementioned trade business, technological consultancy, etc. Research and development of various medicine Research and development, manufacturing and sale of various medicine Research and development of various medicine	6,414 $ 299,915 74,850 14,064 100 273,840 - 9,626 -	- $ 277,067 49,900 14,064 100 273,840 13,734 9,626 21,092	- 13,444,909 7,485,000 2,000,000 10,000 12,000,000 - 1,495,414 -	100.00 29.93 49.90 100.00 100.00 28.94 - 2.49 -	5,184 $ 324,130 65,619 6,605 101 298,703 - 7,794 -	1,100) ($ 47,176) ( 13,409 862) ( - 22,528) ( - 1,516) ( -	1,100) ($ 13,934) ( 7,894 - - - - - -	Subsidiary (Note 4) Associate Associate Subsidiary (Note 5) Subsidiary (Note 5) Associate (Note 5) (Note 5) (Note 6) (Note 5) (Note 5) (Note 6)

Note 1: Formerly named as ‘Chia Scheng Investment Co., Ltd.’.

Note 2: In September 2016, the subsidiary, Syngen Biotech Co., Ltd. (“Syngen”), filed for the initial public offering on Taipei Exchange. As part of the public trading process, the Company allowed its underwriter to exercise the overallotment option, which decreased the Company’s ownership percentage in Syngen to below 50%. However, the Company did not lose control over Syngen.

Note 3: The company participated in the cash captial increase of Syn-Tech Chem. & Pharm. Co., Ltd., which results in becoming Syn-Tech’s single largest corporate shareholder and having substantial control over it. Note 4: The subsidiary was newly established during the first quarter of 2024.

Note 5: Not required to disclose income (loss) recognised.

Note 6: Liquidated during the third quarter of 2024

Note 7: Foreign currencies were translated into New Taiwan Dollars using the following exchange rates.

Note 7: Initial investment amount, ending balances and carrying value were translated using the exchange rate as at December 31, 2024 ( USD: NTD 1:32.79 ； PHP ： NTD 1 ： 0.5671 ； VND ： NTD 1 ： 0.00127 ； MYR ： NTD 1 ： 7.3266) ；

Note 7: Profit and loss were translated using the weighted-average exchange rate for the year ended December 31, 2024 (USD ： NTD 1 ： 32.13 ； PHP ： NTD 1 ： 0.5606 ； VND：NTD 1：0.00130；MYR：NTD 1：7.0289).

Table 4 page 2

Information on investments in Mainland China

For the year ended December 31, 2024

Table 5

Expressed in thousands of NTD

STANDARD CHEM. & PHARM. CO., LTD. AND SUBSIDIARIES

Accumulated

							Accumulated
Investee in Mainland China	Main business activities	Paid-in capital	Investment method	Accumulated amount of remittance from Taiwan to Mainland China as of January1,2024	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year ended December 31,2024		amount of remittance from Taiwan to Mainland China as of December 31,2024	Net income (loss) of investee for the year ended December 31, 2024	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised for the year ended December 31, 2024	Book value of investments in Mainland China as of December 31,2024	Accumulated amount of investment income remitted back to Taiwan as of December 31, 2024	Note
					Remitted to Mainland China	Remitted back to Taiwan
Jiangsu Standard Biotech Pharmaceutical Co., Ltd. Jiangsu Standard-Dia Biopharma Co., Ltd. Shanghai Standard Pharmaceuticals Co., Ltd.	Research and development, technical consulting and technical services of medicine Research and development, manufacturing and sale of various medicine Sale of various medicine and dietary supplement	295,110 $ 189,845 6,559	(Note 1) (Note 2) (Note 3)	294,784 $ - 4,817	- $ - 1,741	- $ - -	294,784 $ - 6,558	23,748) ($ 9,987) ( 1,788) (	100.00 55.00 100.00	23,748) ($ 5,340) ( 1,788) (	26,740 $ 17,088) ( 1,222	- $ - -	(Note 4) (Note 4) (Note 4)

Companyname	Accumulated amount of remittance from Taiwan to Mainland China as of December 31,2024	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs(MOEA)	Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA (Note 5)
Standard Chem. & Pharm. Co., Ltd.	301,342 $	301,668 $	5,385,641 $

Note 1: Indirect investment in Mainland China through an existing company (Standard Pharmaceutical Co., Ltd.) located in the third area. Note 2: Indirect investment in Mainland China through an existing company (Jiangsu Standard Biotech Pharmaceutical Co., Ltd.) located in Mainland China. Note 3: Direct investment in Mainland China from Taiwan. Note 4: Recognition is based on investees’ financial statements audited and attested by independent accountants. Note 5: Ceiling is the higher of net assets or 60% of consolidated equity.

Note 6: Foreign currencies were translated into New Taiwan Dollars using the following exchange rates: Ending investment balances were translated using the exchange rate as at December 31, 2024 (USD:NTD 1:32.79 ； RMB:NTD 1:4.478) ； Investment gains or losses were translated using the weighted-average exchange rate for the year ended December 31, 2024 (USD:NTD 1:32.13 ； RMB:NTD 1:4.456).

Table 5 page 1

December 31, 2024

Table 6

STANDARD CHEM. & PHARM. CO., LTD. AND SUBSIDIARIES Major Shareholders Information

MajorShareholder’s Name	Shares	Shares
	Number of shares	Percentage
Chin-Tsai, Fan Tzu-Pin, Fan Mei-Rong, Fan Hung Tzu-Tin, Fan Sen-Hao, Cheng Tsuey-Wen, Yeh	20,636,813 19,518,084 14,584,781 11,766,604 9,190,888 9,124,669	12% 11% 8% 7% 5% 5%

Note 1: The information of major shareholders in this table is calculated by TDCC on the last business day at the end of each quarter to calculate that the shareholder-holding company has completed

the book-entry delivery (including treasury stocks) of common stocks and special stocks totaling more than 5%. As for the share capital recorded in the company’s financial report and the company’s actual number of shares registered and delivered may be different due to the calculation bases.

Note 2: If shareholder has his/hers shares been entrusted, it shall disclosed in the trustee’s individual accounts. As for shareholder’s declaration of shares held by insiders with more than 10%, for shareholding that includes shares on hand and those have been entrusted, and the right to their entrust property, etc., please refer to MOPS’s website.

Table 6 page 1