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STANDARD CHEM. & PHARM. CO., LTD.
AND SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS AND
INDEPENDENT AUDITORS' REPORT
DECEMBER 31, 2025 AND 2024

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.

STANDARD CHEM. & PHARM. CO., LTD. AND SUBSIDIARIES
DECEMBER 31, 2025 AND 2024 CONSOLIDATED FINANCIAL STATEMENTS
AND INDEPENDENT AUDITORS' REPORT
TABLE OF CONTENTS

Contents	Page
1. Cover Page	1
2. Table of Contents	2 ~ 3
3. Declaration of Consolidated Financial Statements of Affiliated Enterprises	4
4. Independent Auditors' Report	5 ~ 11
5. Consolidated Balance Sheets	12 ~ 13
6. Consolidated Statements of Comprehensive Income	14 ~ 15
7. Consolidated Statements of Changes in Equity	16
8. Consolidated Statements of Cash Flows	17 ~ 18
9. Notes to the Consolidated Financial Statements	19 ~ 87
(1) HISTORY AND ORGANISATION	19
(2) THE DATE OF AUTHORIZATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORIZATION	19
(3) APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS	19 ~ 20
(4) SUMMARY OF MATERIAL ACCOUNTING POLICIES	20 ~ 37

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Contents

(5) CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY 37 ~ 38
(6) DETAILS OF SIGNIFICANT ACCOUNTS 38 ~ 70
(7) RELATED PARTY TRANSACTIONS 70 ~ 73
(8) PLEDGED ASSETS 73
(9) SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT COMMITMENTS 73
(10) SIGNIFICANT DISASTER LOSS 74
(11) SIGNIFICANT EVENT AFTER THE BALANCE SHEET DATE 74
(12) OTHERS 74 ~ 84
(13) SUPPLEMENTARY DISCLOSURES 84 ~ 85
(14) SEGMENT INFORMATION 85 ~ 87

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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, 2025, 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 Standard 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 24, 2026

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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, 2025 and 2024, 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 the 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, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and 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

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 2025 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 2025 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 audit procedures for the above key audit matter:

Assessed the consistency and effectiveness of internal control relevant to sales revenue recognition.
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.
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 $302,640 thousand and $389,749 thousand, constituting 2.57% and 3.49% of the consolidated total assets as of December 31, 2025 and 2024, respectively, and the share of comprehensive loss of associates and joint ventures accounted for under equity method amounted to ($21,999) thousand and ($6,775) thousand, constituting (2.09%) and (0.47%) 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, 2025 and 2024.

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:

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

Independent Accountants

Hsu, Huei-Yu

PricewaterhouseCoopers, Taiwan

Republic of China.

February 24, 2026

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 Taiwan 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, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)

Assets	Notes	December 31, 2025		December 31, 2024
		AMOUNT	%	AMOUNT	%
Current assets
1100	Cash and cash equivalents	6(1)	$ 1,833,746	16	$ 1,520,128	14
1110	Financial assets at fair value through profit or loss - current	6(3)	101,432	1	157,360	2
1136	Financial assets at amortised cost - current	6(2) and 8	449,871	4	134,500	1
1150	Notes receivable, net	6(5), 7 and 12	276,177	2	283,688	3
1170	Accounts receivable, net	6(5), 7 and 12	1,084,909	9	1,039,155	9
1200	Other receivables	7	9,560	-	16,567	-
1220	Current income tax assets	6(27)	253	-	720	-
130X	Inventory	5(2), 6(6)(8)	1,569,221	13	1,720,381	15
1410	Prepayments		134,284	1	126,905	1
1479	Other current assets		2,011	-	2,488	-
11XX	Total current assets		5,461,464	46	5,001,892	45
Non-current assets
1510	Financial assets at fair value through profit or loss - non-current	5(2) and 6(3)	11,653	-	11,267	-
1517	Financial assets at fair value through other comprehensive income - non-current	5(2) and 6(4)	416,522	4	508,242	5
1535	Financial assets at amortised cost - non-current	6(2)	90,741	1	-	-
1550	Investments accounted for under equity method	6(7) and 7	699,629	6	688,452	6
1600	Property, plant and equipment	6(8) and 8	4,225,363	36	4,128,811	37
1755	Right-of-use assets	6(9) and 7	254,755	2	260,641	2
1780	Intangible assets	6(10)(11)	208,433	2	207,731	2
1840	Deferred income tax assets	6(27)	129,565	1	132,264	1
1915	Prepayments for equipment	6(8)	198,274	2	159,487	2
1920	Guarantee deposits paid		48,055	-	28,783	-
1990	Other non-current assets	6(15)	51,449	-	47,975	-
15XX	Total non-current assets		6,334,439	54	6,173,653	55
1XXX	Total assets		$ 11,795,903	100	$ 11,175,545	100

(Continued)

STANDARD CHEM. & PHARM. CO., LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity	Notes	December 31, 2025		December 31, 2024
		AMOUNT	%	AMOUNT	%
Current liabilities
2100	Short-term borrowings	6(12) and 8	$ 660,000	6	$ 110,000	1
2130	Contract liabilities - current	6(20)	99,787	1	94,986	1
2150	Notes payable	7	180,251	2	360,766	3
2170	Accounts payable	7	405,789	3	242,304	2
2200	Other payables	6(13) and 7	591,297	5	573,375	5
2230	Current income tax liabilities	6(27)	133,526	1	195,817	2
2280	Lease liabilities - current	6(9) and 7	25,778	-	23,754	-
2310	Receipts in advance		1,511	-	583	-
2320	Long-term liabilities, current portion	6(14) and 8	59,027	-	59,027	1
2365	Refund liabilities - current	6(20)	-	-	320	-
21XX	Total current liabilities		2,156,966	18	1,660,932	15
Non-current liabilities
2540	Long-term borrowings	6(14) and 8	4,919	-	163,946	1
2570	Deferred income tax liabilities	6(27)	83,658	1	85,494	1
2580	Lease liabilities - non-current	6(9) and 7	199,100	2	203,701	2
2640	Net defined benefit liabilities - non-current	6(15)	55,469	-	76,632	1
2645	Guarantee deposits received		8,982	-	8,772	-
25XX	Total non-current liabilities		352,128	3	538,545	5
2XXX	Total liabilities		2,509,094	21	2,199,477	20
Equity attributable to owners of parent
Share capital
3110	Common stock	6(16)	1,786,961	15	1,786,961	16
3200	Capital surplus	6(7)(17)	301,112	3	300,128	2
	Retained earnings	6(4)(7)(18)(19)
3310	Legal reserve		1,055,980	9	964,252	9
3350	Unappropriated retained earnings		3,086,783	26	2,745,543	25
3400	Other equity interest	6(4)(7)(19)	( 106,191)	( 1)	108,131	1
31XX	Equity attributable to owners of the parent		6,124,645	52	5,905,015	53
36XX	Non-controlling interest	4(3)	3,162,164	27	3,071,053	27
3XXX	Total equity		9,286,809	79	8,976,068	80
	Significant contingent liabilities and unrecognised contract commitments	9
3X2X	Total liabilities and equity		$ 11,795,903	100	$ 11,175,545	100

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

STANDARD CHEM. & PHARM. CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars, except for earnings per share amounts)

	Items	Notes	Year ended December 31
			2025		2024
			AMOUNT	%	AMOUNT	%
4000	Operating revenue	6(20) and 7	$ 7,023,025	100	$ 6,789,223	100
5000	Operating costs	6(6)(9)(10)(15)(25)(26) and 7	4,114,216	(58)	3,800,532	(56)
5900	Net operating margin		2,908,809	42	2,988,691	44
	Operating expenses	6(9)(10)(15)(25)(26) and 7
6100	Selling expenses		(849,679)	(12)	823,212	(12)
6200	General and administrative expenses		(438,531)	(6)	469,546	(7)
6300	Research and development expenses		(260,357)	(4)	288,094	(4)
6450	Expected credit gains (losses)	12	2,550	-	11,523	-
6000	Total operating expenses		(1,546,017)	(22)	1,592,375	(23)
6900	Operating profit		1,362,792	20	1,396,316	21
	Non-operating income and expenses
7100	Interest income	6(2)(21)	29,040	-	37,727	-
7010	Other income	6(4)(22) and 7	147,665	2	157,579	2
7020	Other gains and losses	6(3)(9)(11)(23)(29) and 12	(12,517)	-	62,165	1
7050	Finance costs	6(8)(9)(24)(29) and 7	(8,448)	-	15,069	-
7060	Share of loss of associates and joint ventures accounted for under equity method	6(7)	(4,656)	-	11,359	-
7000	Total non-operating income and expenses		151,084	2	231,043	3
7900	Profit before income tax		1,513,876	22	1,627,359	24
7950	Income tax expense	6(27)	(258,347)	(4)	333,049	(5)
8200	Profit for the year		$ 1,255,529	18	$ 1,294,310	19

(Continued)

	Items	Notes	Year ended December 31
			2025		2024
			AMOUNT	%	AMOUNT	%
	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	6(15)	$ 18,986	-	$ 41,214	1
8316	Unrealised (loss) gain on valuation of investments in equity instruments measured at fair value through other comprehensive income	6(4)	( 214,900 )	( 3 )	90,593	1
8320	Share of other comprehensive loss of associates and joint ventures accounted for under equity method - will not be reclassified to profit or loss	6(7)	( 229 )	-	( 735 )	-
8349	Income tax related to components of other comprehensive income that will not be reclassified to profit or loss	6(27)	( 4,014 )	-	( 8,243 )	-
	Components of other comprehensive income (loss) that will be reclassified to profit or loss
8361	Financial statements translation differences of foreign operations		( 3,864 )	-	12,155	-
8370	Share of other comprehensive income of associates and joint ventures accounted for under equity method - will be reclassified to profit or loss	6(7)	997	-	191	-
8300	Total other comprehensive (loss) income for the year		($ 203,024 )	( 3 )	$ 135,175	2
8500	Total comprehensive income for the year		$ 1,052,505	15	$ 1,429,485	21
	Profit attributable to:
8610	Owners of the parent		$ 927,659	13	$ 880,501	13
8620	Non-controlling interest		327,870	5	413,809	6
			$ 1,255,529	18	$ 1,294,310	19
	Total comprehensive income attributable to:
8710	Owners of the parent		$ 720,293	10	$ 1,012,236	15
8720	Non-controlling interest		332,212	5	417,249	6
			$ 1,052,505	15	$ 1,429,485	21
	Earnings per share (in dollars)	6(28)
9750	Basic		$	5.19	$	4.93
9850	Diluted		$	5.18	$	4.92

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

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

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

	Equity attributable to owners of the parent
Capital Surplus	Retained Earnings	Other Equity Interest
Notes	Common stock	Additional paid-in capital
For the year ended December 31, 2024
Balance at January 1, 2024	$ 1,786,961	$ 152,088
Profit for the year	-	-
Other comprehensive income for the year	6(19)	-
Total comprehensive income for the year	-	-
Change in net equity of associates and joint ventures accounted for under equity method	6(7)(17)	-
Overdue cash dividends payable	6(17)	-
Disposal of financial assets at fair value through other comprehensive income	6(4)(19)	-
Distribution of 2023 earnings:
Legal reserve	-	-
Special reserve	6(18)	-
Cash dividends	6(18)	-
Change in non-controlling interest
Balance at December 31, 2024	$ 1,786,961	$ 152,088
For the year ended December 31, 2025
Balance at January 1, 2025	$ 1,786,961	$ 152,088
Profit for the year	-	-
Other comprehensive income (loss) for the year	6(19)	-
Total comprehensive income (loss) for the year	-	-
Adjustment for non-proportional subscription to subsidiaries' new shares	4(3)	-
Change in net equity of associates and joint ventures accounted for under equity method	6(7)(17)	-
Overdue cash dividends payable	6(17)	-
Disposal of financial assets at fair value through other comprehensive income	6(4)(19)	-
Distribution of 2024 earnings:
Legal reserve	-	-
Cash dividends	6(18)	-
Change in non-controlling interest	-	-
Effect of changes in consolidated entities	-	-
Balance at December 31, 2025	$ 1,786,961	$ 152,088

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

STANDARD CHEM. & PHARM. CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)

	Notes	Year ended December 31
		2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax		$ 1,513,876	$ 1,627,359
Adjustments
Adjustments to reconcile profit (loss)
Net gain on financial assets at fair value through profit or loss	6(3)(23)
Expected credit (gain) loss	12	( 15,734 )	( 178 )
Reversal of allowance for inventory market price decline	6(6)	2,550 )	11,523
Share of loss of associates and joint ventures accounted for under equity method	6(7)	8,816 )	( 6,901 )
Loss on disposal of investments	6(23)	-	846
Loss on remeasurement of investments	6(23)(29)	6	-
Depreciation	6(8)(9)(25)	413,040	385,589
Net loss on disposal of property, plant and equipment	6(23)	1,093	5,472
Property, plant and equipment transferred to expense	6(8)	395	533
Gain from lease modification	6(9)(23)	( 35 )	-
Amortisation	6(25)	20,932	19,149
Impairment loss on intangible assets	6(10)(11)(23)	400	-
Dividend income	6(22)	( 93,478 )	( 12,751 )
Interest income	6(21)	( 29,040 )	( 37,727 )
Interest expense	6(24)	8,448	15,069
Changes in operating assets and liabilities
Changes in operating assets
Financial assets at fair value through profit or loss		71,276	26,446
Notes receivable		7,490	2,665
Accounts receivable		( 43,183 )	( 74,279 )
Other receivables		7,041	136,743
Inventories		147,244	( 105,612 )
Prepayments		( 7,379 )	( 23,816 )
Other current assets		477	3,075
Other non-current assets		( 6,956 )	( 2,717 )
Changes in operating liabilities
Contract liabilities - current		4,801	11,776
Notes payable		( 173,103 )	5,623
Accounts payable		163,485	( 26,844 )
Other payables		( 6,649 )	49,737
Receipts in advance		928	( 123 )
Refund liabilities - current		( 320 )	320
Net defined benefit liabilities - non-current		( 2,177 )	( 21,401 )
Cash inflow generated from operations		1,976,168	2,000,935
Dividends received		93,478	40,395
Interest received		29,006	40,088
Interest paid		( 8,503 )	( 15,535 )
Income tax paid		( 323,322 )	( 370,942 )
Net cash flows from operating activities		1,766,827	1,694,941

(Continued)

STANDARD CHEM. & PHARM. CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)

	Notes	Year ended December 31
		2025	2024
CASH FLOWS FROM INVESTING ACTIVITIES
Increase in financial assets at amortised cost - current		($ 315,371 )	($ 74,000 )
Increase in financial assets at amortised cost - non-current		( 90,741 )	-
Acquisition of financial assets at fair value through other comprehensive income - non-current		( 153,729 )	( 83,055 )
Proceeds from disposal of financial assets at fair value through other comprehensive income - non-current	6(4)	30,549	12,504
Acquisition of investments accounted for under equity method	6(7) and 7	( 12,955 )	( 47,800 )
Cash paid for acquisition of property, plant and equipment	6(29)	( 243,992 )	( 410,813 )
Interest paid for acquisition of property, plant and equipment	6(8)(24)(29)	( 3,583 )	( 2,338 )
Proceeds from disposal of property, plant and equipment		878	15,586
Acquisition of intangible assets	6(10)	( 14,047 )	( 5,469 )
Increase in prepayments for equipment		( 245,291 )	( 183,326 )
(Increase) decrease in guarantee deposits paid		( 19,272 )	16,035
Increase in other non-current assets		( 4,505 )	( 9,016 )
Net cash outflow from changes in consolidated entities	6(29)	( 1,107 )	-
Net cash flows used in investing activities		( 1,073,166 )	( 771,692 )
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in short-term borrowings	6(30)	2,151,154	1,092,509
Decrease in short-term borrowings	6(30)	( 1,601,154 )	( 1,782,509 )
Payments of lease liabilities	6(30)	( 27,444 )	( 24,828 )
Decrease in long-term borrowings	6(30)	( 159,027 )	( 59,027 )
Increase (decrease) in guarantee deposit received	6(30)	210	( 3,527 )
Overdue cash dividends payable	6(17)	166	95
Payments of cash dividends	6(18)	( 500,349 )	( 482,479 )
Decrease in non-controlling interests		( 241,657 )	( 184,540 )
Net cash flows used in financing activities		( 378,101 )	( 1,444,306 )
Effects of foreign exchange		( 1,942 )	4,442
Net increase (decrease) in cash and cash equivalents		313,618	( 516,615 )
Cash and cash equivalents at beginning of year	6(1)	1,520,128	2,036,743
Cash and cash equivalents at end of year	6(1)	$ 1,833,746	$ 1,520,128

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, 2025 AND 2024

(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 24, 2026.

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 2025 are as follows:

New Standards, Interpretations and Amendments	Effective date by International Accounting Standards Board (“IASB”)
Amendments to IAS 21, ‘Lack of exchangeability’	January 1, 2025
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 2026 are as follows:

New Standards, Interpretations and Amendments	Effective date by IASB
Amendments to IFRS 9 and IFRS 7, ‘Amendments to the classification and measurement of financial instruments’	January 1, 2026
Amendments to IFRS 9 and IFRS 7, ‘Contracts referencing nature – dependent electricity’	January 1, 2026
IFRS 17, ‘Insurance contracts’	January 1, 2023

New Standards, Interpretations and Amendments	Effective date by IASB
Amendments to IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendment to IFRS 17, ‘Initial application of IFRS 17 and IFRS 9 – comparative information’	January 1, 2023
Annual Improvements to IFRS Accounting Standards – Volume 11	January 1, 2026

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:

New Standards, Interpretations and Amendments	Effective date by IASB
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between an investor and its associate or joint venture’	To be determined by IASB
IFRS 18, ‘Presentation and disclosure in financial statements’	January 1, 2027 (Note)
IFRS 19, ‘Subsidiaries without public accountability: disclosures’	January 1, 2027
Amendments to IAS 21, ‘Translation to a Hyperinflationary Presentation Currency’	January 1, 2027

(Note) The FSC has announced in a press release on September 25, 2025 that public companies will apply IFRS 18 starting from the fiscal year 2028. Additionally, entities can choose to adopt IFRS 18 earlier based on their requirements after the FSC endorses IFRS 18.

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").

(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 non-controlling 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 of investors	Name of subsidiaries	Main business activities	Ownership (%)		Description
			December 31, 2025	December 31, 2024
Standard Chem. & Pharm. Co., Ltd.	Standard Pharmaceutical Co., Ltd.	Research and development, trading, investment and other business of medical products	100.00	100.00	—
Standard Chem. & Pharm. Co., Ltd.	Chia Scheng International Co., Ltd.	Sale of various medical supplements	100.00	100.00	—
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	100.00	100.00	—
Standard Chem. & Pharm. Co., Ltd.	Inforight Technology Co., Ltd.	Wholesale of multi-function printers and information software	100.00	100.00	—
Standard Chem. & Pharm. Co., Ltd.	Souriree Biotech & Pharm. Co., Ltd.	Manufacturing of western medicine and retail and wholesale of various medicine	93.58	93.58	—

Name of investors	Name of subsidiaries	Main business activities	Ownership (%)		Description
			December 31, 2025	December 31, 2024
Standard Chem. & Pharm. Co., Ltd.	Multipower Enterprise Corp.	Import and export of western medicine, nourishment and function food, processing, manufacturing and sale of food	90.72	90.72	—
Standard Chem. & Pharm. Co., Ltd.	Advpharma Inc.	Research and development, manufacturing and sale of various medicines	88.71	88.71	—
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	46.68	46.68	(Note 1)
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	28.43	28.43	(Note 2)
Standard Chem. & Pharm. Co., Ltd.	Ho Yao Biopharm Co., Ltd.	Research and development of new medicine	90.71	84.99	(Note 3)
Standard Chem. & Pharm. Co., Ltd.	Shanghai Standard Pharmaceuticals Co., Ltd.	Sale of various medicine and dietary supplement	100.00	100.00	—

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Name of investors	Name of subsidiaries	Main business activities	Ownership (%)		Description
			December 31, 2025	December 31, 2024
Standard Chem. & Pharm. Co., Ltd.	Standard Chem. & Pharm. Vietnam Co., Ltd.	Import and export of various medicine	100.00	100.00	(Note 4)
Standard Pharmaceutical Co., Ltd.	Jiangsu Standard Biotech Pharmaceutical Co., Ltd.	Research and development, technical consulting and technical services of medicines	100.00	100.00	—
Syngen Biotech Co., Ltd.	Syngen Biotech International Sdn. Bhd.	Research and development, manufacturing and sale of APIs and biochemical nutrition, sale of preventive medicines	100.00	100.00	—
Syngen Biotech Co., Ltd.	Jhan Shuo Biopharma Co., Ltd.	Manufacturing, wholesale and sale of western medicine	100.00	100.00	—
Syn-Tech Chem. & Pharm. Co., Ltd.	Advpharma Inc.	Research and development, manufacturing and sale of various medicine	2.49	2.49	—
Jiangsu Standard Biotech Pharmaceutical Co., Ltd.	Jiangsu Standard-Dia Biopharma Co., Ltd.	Research and development, manufacturing and sale of various medicines	55.00	55.00	(Note 5)

Note 1: 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 2: 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"), as the Group obtained

substantial control over Syn-Tech through comprehensive assessment and reaching an agreement with another major shareholder.

Note 3: In May 2025, Ho Yao Biopharm Co., Ltd. conducted a cash capital increase, in which the Company subscribed to all shares amounting to $26,700. After the capital increase, the Company’s ownership interest in the subsidiary was 90.71%. As the Company did not subscribe to the subsidiary’s new shares in proportion to its original ownership interest, a decrease of $1,298 in unappropriated retained earnings was recognised.

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

Note 5: Jiangsu Standard Biotech Pharmaceutical Co., Ltd. has filed an application with the local court for the bankruptcy liquidation of Jiangsu Standard-Dia Biopharma Co., Ltd. The application has been formally accepted by the court, and the bankruptcy proceedings are currently ongoing.

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, 2025 and 2024, the non-controlling interest of the Group amounted to $3,162,164 and $3,071,053, respectively. The information on non-controlling interest and respective subsidiaries is as follows:

Name of subsidiaries	Principal place of business	Non-controlling interest
		December 31, 2025		December 31, 2024		Description
		Amount	Ownership (%)	Amount	Ownership (%)
Syngen Biotech Co., Ltd.	Taiwan	$1,265,022	53.32%	$1,191,888	53.32%	—
Syn-Tech Chem. & Pharm. Co., Ltd.	Taiwan	$1,841,429	71.57%	$1,819,839	71.57%	—

(2) Summarised financial information of the subsidiaries:

A. Syngen Biotech Co., Ltd. and subsidiaries

(a) Balance sheets

	December 31, 2025	December 31, 2024
Current assets	$ 1,141,183	$ 1,155,042
Non-current assets	1,906,907	1,929,552
Current liabilities	( 519,576)	( 520,156)
Non-current liabilities	( 155,317)	( 328,362)
Total net assets	$ 2,373,197	$ 2,236,076

(b) Statements of comprehensive income

	For the years ended December 31,
	2025	2024
Revenue	$ 2,136,484	$ 2,013,592
Profit before income tax	$ 334,843	$ 299,611
Income tax expense	( 63,250)	( 59,404)
Net income	$ 271,593	$ 240,207
Total comprehensive income	$ 272,511	$ 239,915
Comprehensive income attributable to non-controlling interest	$ 150,389	$ 128,813
Dividends paid to non-controlling interest	$ 72,249	$ 72,251

	For the years ended December 31,
	2025	2024
Net cash flows provided by operating activities	$ 319,483	$ 348,044
Net cash flows used in investing activities	( 76,825)	( 84,531)
Net cash flows used in financing activities	( 309,466)	( 289,086)
Effect of foreign exchange	340	615
Net decrease in cash and cash equivalents	( 66,468)	( 24,958)
Cash and cash equivalents at beginning of year	341,933	366,891
Cash and cash equivalents at end of year	$ 275,465	$ 341,933

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

(a) Balance sheets

	December 31, 2025	December 31, 2024
Current assets	$ 1,531,253	$ 1,333,320
Non-current assets	1,428,761	1,518,608
Current liabilities	( 304,490)	( 219,472)
Non-current liabilities	( 65,080)	( 72,179)
Total net assets	$ 2,590,444	$ 2,560,277

(b) Statements of comprehensive income

	For the years ended December 31,
	2025	2024
Revenue	$ 1,300,241	$ 1,257,665
Profit before income tax	$ 334,157	$ 488,200
Income tax expense	( 72,311)	( 94,954)
Net income	$ 261,846	$ 393,246
Total comprehensive income	$ 266,719	$ 399,000
Comprehensive income attributable to non-controlling interest	$ 199,017	$ 293,512
Dividends paid to non-controlling interest	$ 169,153	$ 111,700

	For the years ended December 31,
	2025	2024
Net cash flows provided by operating activities	$ 559,492	$ 622,608
Net cash flows used in investing activities	( 58,305)	( 210,454)
Net cash flows used in financing activities	( 109,381)	( 422,279)
Net increase (decrease) in cash and cash equivalents	391,806	( 10,125)
Cash and cash equivalents at beginning of year	656,797	666,922
Cash and cash equivalents at end of year	$ 1,048,603	$ 656,797

(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 re-translated 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, non-monetary 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 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 that are expected to be realised, or are intended to be sold or consumed in the normal operating cycle;

(b) Assets held primarily for the purpose of trading;

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(d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities for at least 12 months after the reporting period.

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 in the normal operating cycle;
(b) Liabilities arising primarily from trading activities;
(c) Liabilities that are due to be settled within 12 months after the reporting period;
(d) It does not have the right at the end of the reporting period to defer settlement of the liability at least 12 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.

(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.

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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.

(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

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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.

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.

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(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.

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:

Assets	Useful 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 low-value 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. For all other lease modifications, the lessee shall remeasure the lease liability and adjust the right-of-use asset, correspondingly.

(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.

~33~

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.

(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

~34~

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.

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.

~35~

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 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 $4 \sim 6$ months upon billings. As the time

~36~

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.

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.

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.

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(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 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, 2025, the carrying amount of inventories was $1,569,221.

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, 2025, the carrying amount of unlisted stocks without active market was $119,670.

DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

	December 31, 2025	December 31, 2024
Cash:
Revolving funds and petty cash	$ 12,387	$ 28,230
Checking deposits and demand deposits	795,130	894,992
	807,517	923,222
Cash equivalents:
Time deposits	758,041	566,906
Repurchase bonds	268,188	30,000
	1,026,229	596,906
	$ 1,833,746	$ 1,520,128

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, 2025 and 2024, the Group has no cash and cash equivalents pledged to others.

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(2) Financial assets at amortised cost

Items	December 31, 2025	December 31, 2024
Current items:
Time deposits with maturity over three months	$ 349,871	$ 126,500
Structured investments	100,000	-
Pledged time deposits	-	8,000
	$ 449,871	$ 134,500
Non-current items:
Corporate bonds	$ 90,741	$ -

A. The Group recognised interest income amounting to $4,057 and $1,790 in profit or loss in relation to financial assets at amortised cost for the years ended December 31, 2025 and 2024, respectively.

B. As at December 31, 2025 and 2024, without taking into account other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at amortised cost held by the Group was equivalent to its book value.

C. Details of the Group’s financial assets at amortised cost pledged to others as collateral as of December 31, 2025 and 2024 are provided in Note 8, ‘PLEDGED ASSETS’.

D. Information relating to credit risk of financial assets at amortised cost is provided in Note 12(2), ‘Financial instruments’. The counterparties of the Group’s investments in certificates of deposits are financial institutions with high credit quality, so the Group expects that the probability of counterparty default is remote.

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

	December 31, 2025	December 31, 2024
Current items:
Financial assets mandatorily measured at fair value through profit or loss
Beneficiary certificates	$ 33,383	$ 96,029
Listed stocks	73,300	61,471
Emerging stocks	-	12,820
	106,683	170,320
Valuation adjustment	( 5,251)	( 12,960)
	$ 101,432	$ 157,360

~40~

	December 31, 2025	December 31, 2024
Non-current items:
Financial assets mandatorily measured at fair value through profit or loss
Emerging stocks	$ 157	$ 157
Unlisted stocks	17,800	17,800
	17,957	17,957
Valuation adjustment	(6,304)	(6,690)
	$ 11,653	$ 11,267

A. The Group recognised net gain (listed as "Other gains and losses") of $15,734 and $178 for the years ended December 31, 2025 and 2024, respectively.
B. As of December 31, 2025 and 2024, the Group has no financial assets at fair value through profit or loss pledged to others.

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

	December 31, 2025	December 31, 2024
Equity instruments
Listed stocks	$ 295,170	$ 186,442
Unlisted stocks	226,990	216,997
	522,160	403,439
Valuation adjustment	(105,638)	104,803
	$ 416,522	$ 508,242

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 $30,549 and $12,504 for the years ended December 31, 2025 and 2024, respectively. This resulted in cumulative (loss) gain on disposal amounting to ($1) and $6,418, which was reclassified to retained earnings for the years ended December 31, 2025 and 2024, respectively.
C. The Group held certain investments in equity instruments, and the investee company was liquidated in December 2025. As a result of the liquidation, the Group was allocated residual properties, acquiring shares measured at fair value amounting to $3,329, which were elected to be classified as financial assets at fair value through other comprehensive income. Upon the investee company's liquidation, the cumulative valuation loss of $4,458 was deemed as disposed and reclassified to retained earnings.
D. The Group recognised ($214,900) and $90,593 in other comprehensive income in relation to fair value change for the years ended December 31, 2025 and 2024, respectively.

E. The Group recognised dividend income of $90,283 and $11,671 in profit or loss (listed as “Other income”) from financial assets at fair value through other comprehensive income for the years ended December 31, 2025 and 2024, respectively.

F. As of December 31, 2025 and 2024, the Group has no financial assets at fair value through other comprehensive income pledged to others.

G. In March 2025, the Company’s Board of Directors resolved to subscribe for 1,700,000 common shares of Easywell Biomedicals, Inc. through a private placement, in accordance with the “Directions for Public Companies Conducting Private Placements of Securities.” The total subscription amount was $99,212, and the related payment has been fully settled.

(5) Notes and accounts receivable

	December 31, 2025	December 31, 2024
Notes receivable	$ 276,626	$ 284,116
Less: Allowance for uncollectible accounts	( 449)	( 428)
	$ 276,177	$ 283,688
Accounts receivable	$ 1,093,249	$ 1,065,543
Less: Allowance for uncollectible accounts	( 8,340)	( 26,388)
	$ 1,084,909	$ 1,039,155

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

	December 31, 2025	December 31, 2024
Notes receivable:
Within the credit period	$ 275,631	$ 283,785
Overdue up to 90 days	992	327
Overdue 91 to 180 days	3	4
	$ 276,626	$ 284,116
Accounts receivable:
Within the credit period	$ 1,001,757	$ 935,243
Overdue up to 90 days	39,399	66,981
Overdue 91 to 180 days	21,752	63,230
Overdue 181 to 270 days	30,282	-
Overdue over 271 days	59	89
	$ 1,093,249	$ 1,065,543

The above aging analysis was based on days overdue.

B. As of December 31, 2025 and 2024, notes and accounts receivable were all from contracts with customers. As of January 1, 2024, the balance of receivables from contracts with customers amounted to $1,278,357.

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, 2025 and 2024, the Group has no notes and accounts receivable pledged to others.

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

(6) Inventories

	December 31, 2025
	Cost	Allowance for valuation loss	Book value
Merchandise	$ 134,768	($ 4,091)	$ 130,677
Raw materials	475,429	( 29,511)	445,918
Supplies	94,601	( 7,435)	87,166
Work in process	290,328	( 3,174)	287,154
Finished goods	645,620	( 27,314)	618,306
	$ 1,640,746	($ 71,525)	$ 1,569,221
	December 31, 2024
	Cost	Allowance for valuation loss	Book value
Merchandise	$ 127,548	($ 4,636)	$ 122,912
Raw materials	445,177	( 22,827)	422,350
Supplies	103,561	( 15,040)	88,521
Work in process	298,784	( 9,769)	289,015
Finished goods	825,652	( 28,069)	797,583
	$ 1,800,722	($ 80,341)	$ 1,720,381

The cost of inventories recognised as expenses for the year:

	For the years ended December 31,
	2025	2024
Cost of goods sold	$ 4,036,380	$ 3,763,649
Loss on scrapped inventories	61,475	35,964
Reversal of allowance for inventory market price decline (Note)	( 8,816)	( 6,901)
Underapplied fixed manufacturing overhead	25,208	7,470
Gain on physical inventory	( 1,058)	( 1,097)
	$ 4,113,189	$ 3,799,085

(Note) For the years ended December 31, 2025 and 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.

(7) Investments accounted for under equity method

A. Movements of investments accounted for under equity method:

	For the years ended December 31,
	2025	2024
At January 1	$ 688,452	$ 604,029
Acquisition of investments accounted for under equity method	12,955	47,800
Effect of changes in consolidated entities (Note)	1,232	-
Share of loss of investments accounted for under equity method	( 4,656)	( 11,359)
Earnings distribution of investments accounted for under equity method	-	( 27,644)
Capital surplus—Changes in net equity of associates and joint ventures accounted for under equity method	878	76,170
Retained earnings—Remeasurement of defined benefit plan	( 229)	( 735)
Other equity interest—Financial statements translation differences of foreign operations	997	191
At December 31	$ 699,629	$ 688,452

(Note) In May 2025, the Company established a subsidiary, Standard Pharma Holding Co., Ltd., and held 60% ownership interest. On June 30, 2025, the subsidiary conducted a cash capital increase, and the Company's ownership interest decreased to 48.86% as it did not subscribe to the new shares in proportion to its ownership interest. Although the Company remained the single largest shareholder, from the date of the capital increase, it did not hold more than half of the voting rights at the shareholders' meetings, nor did it have any contractual arrangements with other shareholders to consult or jointly make decisions. This indicates that the Group does not have the practical ability to direct the relevant activities, and therefore it was determined that the Group no longer has control over the subsidiary but retains significant influence. For more information regarding the loss of control, please refer to Note 6(29), 'Supplemental cash flow information'.

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

	December 31, 2025	December 31, 2024
Geneferm Biotechnology Co., Ltd.	$ 306,721	$ 298,703
We Can Medicines Co., Ltd.	302,640	324,130
Others	90,268	65,619
	$ 699,629	$ 688,452

C. Associates:

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

Company name	Principal place of business	Shareholding ratio
		December 31,
		2025	2024
We Can Medicines Co., Ltd.	Taiwan	29.82%	29.93%
Geneferm Biotechnology Co., Ltd. and subsidiaries	Taiwan	28.94%	28.94%

(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.

	December 31, 2025	December 31, 2024
Current assets	$ 1,449,674	$ 1,464,623
Non-current assets	1,528,543	1,620,971
Current liabilities	( 947,860)	( 921,387)
Non-current liabilities	( 981,916)	( 1,048,049)
Total net assets	$ 1,048,441	$ 1,116,158
Share in associate’s net assets	$ 312,645	$ 334,066
Goodwill	15,279	15,279
Unrealised gain from transactions with associates	( 25,284)	( 25,215)
Carrying amount of the associate	$ 302,640	$ 324,130

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

	December 31, 2025	December 31, 2024
Current assets	$ 595,484	$ 411,971
Non-current assets	685,179	734,524
Current liabilities	( 158,639)	( 134,260)
Non-current liabilities	( 305,363)	( 224,051)
Total net assets	$ 816,661	$ 788,184
Share in associate’s net assets	$ 236,342	$ 228,057
Goodwill	70,651	70,651
Unrealised gain from transactions with associate	( 272)	( 5)
Carrying amount of the associate	$ 306,721	$ 298,703

ii. Statements of comprehensive income

(i) We Can Medicines Co., Ltd.

	For the years ended December 31,
	2025	2024
Revenue	$ 3,221,803	$ 3,269,204
Net loss	($ 73,212)	($ 47,176)
Total comprehensive loss	($ 73,591)	($ 49,628)

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

	For the years ended December 31,
	2025	2024
Revenue	$ 677,098	$ 521,163
Net income (loss)	$ 28,862	($ 22,528)
Total comprehensive income (loss)	$ 28,477	($ 21,733)

(c) As of December 31, 2025 and 2024, the carrying amount of the Group's individually immaterial associates amounted to $90,268 and $65,619, respectively. The share in associates' financial performance is as follows:

	For the years ended December 31,
	2025	2024
Net profit	$ 9,100	$ 7,894
Total comprehensive income	$ 10,092	$ 7,894

(d) The fair values of the Group's associates with quoted market prices are as follows:

	December 31, 2025	December 31, 2024
Geneferm Biotechnology Co., Ltd.	$ 579,000	$ 564,000
We Can Medicines Co., Ltd.	462,505	519,646
	$ 1,041,505	$ 1,083,646

(e) 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 Group and its related parties for the years ended December 31, 2025 and 2024 are provided in Note 7, "RELATED PARTY TRANSACTIONS".

E. As of December 31, 2025 and 2024, the Group has no investments accounted for under equity method pledged to others.

(8) Property, plant and equipment

	Land	Buildings	Machinery	Utility equipment	Transportation equipment	Office equipment	Other equipment	Construction in progress and equipment to be inspected	Total
At January 1, 2025
Cost	$ 898,539	$ 2,420,764	$ 2,252,048	$ 343,547	$ 25,877	$ 45,262	$ 1,273,358	$ 206,522	$ 7,465,917
Accumulated depreciation	-	( 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
For the year ended December 31, 2025
At January 1	$ 898,539	$ 1,494,245	$ 782,097	$ 122,418	$ 5,916	$ 12,299	$ 606,775	$ 206,522	$ 4,128,811
Additions - cost	400	57,724	46,575	3,024	745	7,644	25,494	123,183	264,789
Transfers (Note 1)	2,416	193,823	67,819	815	459	501	48,321	( 94,968)	219,186
Depreciation	-	( 82,104)	( 161,417)	( 19,531)	( 2,010)	( 5,276)	( 113,155)	-	( 383,493)
Disposals - cost	-	( 3,970)	( 43,409)	( 2,736)	( 1,365)	( 3,441)	( 10,863)	-	( 65,784)
- accumulated depreciation	-	3,970	41,837	2,736	1,326	3,436	10,508	-	63,813
Net exchange differences	-	( 1,820)	( 68)	-	( 27)	( 21)	( 23)	-	( 1,959)
At December 31	$ 901,355	$ 1,661,868	$ 733,434	$ 106,726	$ 5,044	$ 15,142	$ 567,057	$ 234,737	$ 4,225,363
At December 31, 2025
Cost	$ 901,355	$ 2,665,280	$ 2,321,769	$ 344,650	$ 25,558	$ 49,968	$ 1,335,729	$ 234,737	$ 7,879,046
Accumulated depreciation	-	( 1,003,412)	( 1,588,335)	( 237,924)	( 20,514)	( 34,826)	( 768,672)	-	( 3,653,683)
	$ 901,355	$ 1,661,868	$ 733,434	$ 106,726	$ 5,044	$ 15,142	$ 567,057	$ 234,737	$ 4,225,363

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At January 1, 2024	Land	Buildings	Machinery	Utility equipment	Transportation equipment	Office equipment	Other equipment	Construction in progress and equipment to be inspected	Total
Cost	$770,539	$2,189,911	$2,170,248	$313,507	$24,367	$46,006	$1,184,136	$345,846	$7,044,560
Accumulated depreciation	-	(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
For the year ended December 31, 2024
At January 1	$770,539	$1,336,290	$842,420	$109,322	$5,793	$10,987	$600,329	$345,846	$4,021,526
Additions - cost	128,000	29,838	46,628	4,794	226	4,617	35,149	143,715	392,967
Transfers (Note 2)	-	193,679	64,126	26,825	1,855	1,356	84,501	(283,039)	89,303
Depreciation	-	(70,011)	(155,750)	(18,511)	(1,962)	(4,667)	(107,672)	-	(358,573)
Disposals - cost	-	(343)	(31,156)	(1,579)	(664)	(6,839)	(29,856)	-	(70,437)
- accumulated depreciation	-	343	15,689	1,567	664	6,836	24,280	-	49,379
Net exchange differences	-	4,449	140	-	4	9	44	-	4,646
At December 31	$898,539	$1,494,245	$782,097	$122,418	$5,916	$12,299	$606,775	$206,522	$4,128,811
At December 31, 2024
Cost	$898,539	$2,420,764	$2,252,048	$343,547	$25,877	$45,262	$1,273,358	$206,522	$7,465,917
Accumulated depreciation	-	(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

(Note 1) Including transfer of $12,732 from ‘Inventories’; transfer of $206,504 from ‘Prepayments for equipment’; transfer of $345 from ‘Right-of-use assets’ and transfer of $395 to expenses.
(Note 2) Including transfer of $7,108 from ‘Inventories’; transfer of $82,728 from ‘Prepayments for equipment’ and transfer of $533 to expenses.

A. As of December 31, 2025 and 2024, the carrying amount of land, buildings and other equipment held for operating leases are as follows:

	December 31, 2025	December 31, 2024
Land	$ 5,264	$ 5,264
Buildings	$ 9,839	$ 10,227
Other equipment	$ 2,332	$ 1,738

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:

	For the years ended December 31,
	2025	2024
Amount capitalised	$ 3,583	$ 2,338
Interest rate range	0.48%~1.80%	0.84%~1.68%

C. Information about property, plant and equipment that were pledged to others as collateral as of December 31, 2025 and 2024 is provided in Note 8, 'PLEDGED ASSETS'.

(9) Leasing arrangements—lessee

A. The Group leases various assets including land, buildings and transportation equipment. 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:

	December 31, 2025	December 31, 2024
	Carrying amount	Carrying amount
Land	$ 220,776	$ 237,379
Buildings	24,003	14,575
Transportation equipment	9,976	8,687
	$ 254,755	$ 260,641
	For the years ended December 31,
	2025	2024
	Depreciation	Depreciation
Land	$ 16,130	$ 16,171
Buildings	11,210	9,325
Transportation equipment	2,207	1,520
	$ 29,547	$ 27,016

C. The additions to right-of-use assets were $26,142 and $6,330 for the years ended December 31, 2025 and 2024, respectively.

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

	For the years ended December 31,
	2025	2024
Items affecting profit or loss
Interest expense on lease liabilities	$ 3,891	$ 4,012
Expense on short-term lease contract	4,492	6,431
Expense on leases of low-value assets	2,142	145
Gain from lease modification	( 35)	-

E. The Group's total cash outflow for leases was $37,969 and $35,416 for the years ended December 31, 2025 and 2024, respectively.

(10) Intangible assets

At January 1, 2025	Goodwill	Software	Patents	Others	Total
Cost	$ 174,159	$ 16,872	$ 67,467	$ 86,658	$ 345,156
Accumulated amortisation	( 248)	( 12,526)	( 46,397)	( 62,520)	( 121,691)
Accumulated impairment	-	-	-	( 15,734)	( 15,734)
	$ 173,911	$ 4,346	$ 21,070	$ 8,404	$ 207,731
For the year ended December 31, 2025
At January 1	$ 173,911	$ 4,346	$ 21,070	$ 8,404	$ 207,731
Additions - acquired separately	-	2,247	-	11,800	14,047
Amortisation	-	( 2,242)	( 9,602)	( 1,101)	( 12,945)
Disposals - cost	-	( 8,401)	( 1,954)	( 32,232)	( 42,587)
- accumulated amortisation	-	8,401	1,954	32,232	42,587
Impairment loss	-	-	-	( 400)	( 400)
At December 31	$ 173,911	$ 4,351	$ 11,468	$ 18,703	$ 208,433
At December 31, 2025
Cost	$ 174,159	$ 10,715	$ 65,513	$ 66,226	$ 316,613
Accumulated amortisation	( 248)	( 6,364)	( 54,045)	( 31,389)	( 92,046)
Accumulated impairment	-	-	-	( 16,134)	( 16,134)
	$ 173,911	$ 4,351	$ 11,468	$ 18,703	$ 208,433

~50~

At January 1, 2024

	Goodwill	Software	Patents	Others	Total
Cost	$ 174,159	$ 42,870	$ 66,837	$ 84,058	$ 367,924
Accumulated amortisation	( 248)	( 38,105)	( 36,796)	( 62,503)	( 137,652)
Accumulated impairment	-	-	-	( 15,734)	( 15,734)
	$ 173,911	$ 4,765	$ 30,041	$ 5,821	$ 214,538
For the year ended December 31, 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)
- accumulated amortisation	-	28,258	-	-	28,258
Net exchange differences	-	2	-	-	2
At December 31	$ 173,911	$ 4,346	$ 21,070	$ 8,404	$ 207,731
At December 31, 2024
Cost	$ 174,159	$ 16,872	$ 67,467	$ 86,658	$ 345,156
Accumulated amortisation	( 248)	( 12,526)	( 46,397)	( 62,520)	( 121,691)
Accumulated impairment	-	-	-	( 15,734)	( 15,734)
	$ 173,911	$ 4,346	$ 21,070	$ 8,404	$ 207,731

A. No borrowing costs were capitalised as part of intangible assets for the years ended December 31, 2025 and 2024.

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

	For the years ended December 31,
	2025	2024
Operating costs	$ 7,051	$ 6,154
Selling expenses	9	21
General and administrative expenses	3,229	3,860
Research and development expenses	2,656	2,243
	$ 12,945	$ 12,278

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:

	December 31, 2025	December 31, 2024
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

D. Impairment information about the intangible assets is provided in Note 6(11), "Impairment of non-financial assets".
E. As of December 31, 2025 and 2024, 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, 2025 and 2024.
C. The Group identified indications of impairment for intangible assets for the year ended December 31, 2025. Therefore, the Group referred to an expert's appraisal report to estimate their recoverable amount. The recoverable amount was lower than the carrying amount, resulting in the recognition of an impairment loss of $400 (listed as "Other gains and losses"). The key assumptions used to calculate the recoverable amount are as follows:

	For the year ended December 31, 2025
Royalty rate	4.5%
Growth rate	4%
Discount rate	14.34%

D. As of December 31, 2025 and 2024, the carrying amount of accumulated impairment of non-financial assets was $16,134 and $15,734, respectively.

(12) Short-term borrowings

Type of borrowings	December 31, 2025	Interest rate range	Collateral
Unsecured bank borrowings	$ 660,000	0.795%~1.80%	None
Type of borrowings	December 31, 2024	Interest rate range	Collateral
Unsecured bank borrowings	$ 110,000	1.80%	None

For more information about the interest expenses recognised in profit or loss by the Group for the years ended December 31, 2025 and 2024, refer to Note 6(24), 'Finance costs'.

(13) Other payables

	December 31, 2025	December 31, 2024
Accrued salaries and bonuses	$ 271,701	$ 281,687
Accrued employees’ compensation and directors’ remuneration	47,939	50,741
Equipment payable	31,274	6,648
Others	240,383	234,299
	$ 591,297	$ 573,375

(14) Long-term borrowings

Type of borrowings	Maturity date	December 31, 2025	Interest rate	Collateral	Note
Bank secured borrowings	2027.1.15	$ 63,946	1.92%	Buildings and other equipment	(Note 1)
Less: Current portion of long-term borrowings		( 59,027)
		$ 4,919
Type of borrowings	Maturity date	December 31, 2024	Interest rate	Collateral	Note
Bank secured borrowings	2027.1.15	$ 122,973	2.02%	Construction 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

(Note 1) The principal has a grace period of 18~35 months. After the grace period expires, the principal and interest are payable in 37 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, 2025 and 2024, refer to Note 6(24), 'Finance costs'.

~52~

(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 $2\% \sim 5\%$ 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:

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

	December 31, 2025		December 31, 2024
Present value of defined benefit obligations	($	468,231)	($	465,632)
Fair value of plan assets		453,863		423,145
	($	14,368)	($	42,487)
Net defined benefit liability (Note 1)	($	55,469)	($	76,632)
Net defined benefit asset (Note 2)		41,101		34,145
	($	14,368)	($	42,487)

(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 defined benefit obligation	Fair value of plan assets	Net defined benefit liability
For the year ended December 31, 2025
At January 1	($ 465,632)	$ 423,145	($ 42,487)
Current service cost	( 2,271)	-	( 2,271)
Interest (expense) income	( 7,315)	6,725	( 590)
	( 475,218)	429,870	( 45,348)
Remeasurements:
Return on plan assets (excluding amounts included in interest income or expense)	-	29,782	29,782
Change in financial assumptions	( 8,245)	-	( 8,245)
Experience adjustments	( 2,551)	-	( 2,551)
	( 10,796)	29,782	18,986
Pension fund contribution	-	9,605	9,605
Paid pension	17,783	( 15,394)	2,389
At December 31	($ 468,231)	$ 453,863	($ 14,368)

	Present value of defined benefit obligation	Fair value of plan assets	Net defined benefit liability
For the year ended December 31, 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)

(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, 2025 and 2024 is given in the Annual Labour Retirement Fund Utilisation Report announced by the government.

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

	For the years ended December 31,
	2025	2024
Discount rate	1.30%~1.40%	1.60%~1.65%
Future salary increases	2.00%~3.00%	2.00%~3.00%

For the years ended December 31, 2025 and 2024, 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, 2025
Effect on present value of defined benefit obligation	($ 8,070)	$ 8,303	$ 7,972	($ 7,789)
December 31, 2024
Effect on present value of defined benefit obligation	($ 8,661)	$ 8,918	$ 8,585	($ 8,382)

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 ending December 31, 2026 amount to $9,311.

(f) As of December 31, 2025, the weighted average duration of that retirement plan is $5 \sim 9$ years. The analysis of timing of the future pension payment was as follows:

Within 1 year

$ 30,565

2~5 years

166,526

Over 5 years

317,201

$ 514,292

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

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, 2025 and 2024, 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, 2025 and 2024 were $60,525 and $58,321, 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,
	2025	2024
Beginning and ending balance	178,696	178,696

B. As of December 31, 2025, 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 Group recognised the change in net equity proportionately to its ownership amounting to $508 and $1,779 for the years ended December 31, 2025 and 2024, 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. In July 2025, the Company's associate, Standard Pharma Holding Co., Ltd., issued new shares through cash capital increase. The Group did not subscribe to the new shares in proportion to its ownership interest, resulting in a decrease in capital surplus by $40.

~57~

E. The Company’s associate, Standard Pharma Holding Co., Ltd., did not subscribe to the new shares of investee company accounted for under equity method proportionately to its ownership, resulting in changes in net equity. The Group recognised the change in net equity proportionately to its ownership amounting to $410 for the year ended December 31, 2025.

F. For the years ended December 31, 2025 and 2024, 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 $166 and $95, respectively, which had expired and not collected by the shareholders, to capital surplus.

(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.

(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 year ended December 31, 2024, special reserve amounting to $115,935 was reversed based on the above circumstance. There was no such situation for the year ended December 31, 2025.

~58~

D. As resolved by the Board of Directors on February 27, 2024, the Company recognised cash dividends distributed to owners amounting to $482,479 ($2.7 (in dollars) per share) for the appropriations of 2023 earnings. As resolved by the Board of Directors on February 25, 2025, the Company recognised cash dividends distributed to owners amounting to $500,349 ($2.8 (in dollars) per share) for the appropriations of 2024 earnings. On February 24, 2026, the Board of Directors resolved the distribution of cash dividends amounting to $357,392 ($2 (in dollars) per share) and proposed the distribution of stock dividends amounting to $178,696 ($1 (in dollars) per share) from 2025 earnings. 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.

(19) Other equity

	For the year ended December 31, 2025
	Currency translation	Unrealised gain (loss) on valuation of financial assets	Total
At January 1	$ 4,489	$ 103,642	$ 108,131
Currency translation differences
- Group	( 3,641)	-	( 3,641)
- Associates	5	-	5
Valuation adjustment
- Group	-	( 215,145)	( 215,145)
Valuation adjustment transferred to retained earnings
- Group	-	4,459	4,459
At December 31	$ 853	($ 107,044)	($ 106,191)
	For the year ended December 31, 2024
	Currency translation	Unrealised gain (loss) on valuation of financial assets	Total
At January 1	($ 7,452)	$ 20,629	$ 13,177
Currency translation differences
- Group	11,750	-	11,750
- Associates	191	-	191
Valuation adjustment
- Group	-	89,431	89,431
Valuation adjustment transferred to retained earnings
- Group	-	( 6,418)	( 6,418)
At December 31	$ 4,489	$ 103,642	$ 108,131

(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:

	For the year ended December 31, 2025
	Domestic	International	Total
Revenue from sales of medicine	$ 2,792,518	$ 422,421	$ 3,214,939
Revenue from sales of dietary supplement	2,138,606	69,899	2,208,505
Revenue from sales of Active Pharmaceutical Ingredients	296,219	1,024,907	1,321,126
Revenue from rendering of services	1,600	-	1,600
Others	268,690	8,165	276,855
	$ 5,497,633	$ 1,525,392	$ 7,023,025
	For the year ended December 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

B. The Group has recognised the following revenue-related contract liabilities:

	December 31, 2025	December 31, 2024	January 1,2024
Contract liabilities – current
Sales of medicine	$ 39,657	$ 43,587	$ 34,899
Sales of dietary supplement	57,401	45,531	44,943
Sales of Active Pharmaceutical Ingredients	1,931	4,754	31
Others	798	1,114	3,337
	$ 99,787	$ 94,986	$ 83,210
Refund liabilities - current	$ -	$ 320	$ -

Revenue recognised that was included in the contract liability balance at the beginning of the years ended December 31, 2025 and 2024 were $77,365 and $65,355, respectively.

(21) Interest income

	For the years ended December 31,
	2025	2024
Interest income from financial assets at amortised cost	$ 4,057	$ 1,790
Interest income from bank deposits	24,983	35,937
	$ 29,040	$ 37,727

(22) Other income

	For the years ended December 31,
	2025	2024
Dividend income	$ 93,478	$ 12,751
Rental income	5,169	2,194
Service income	7,697	-
Royalty income	5,764	15,699
Technology transfer income	-	8,734
Research income	11,180	23,389
Government grants income	4,122	7,992
Fire insurance claim income (Note)	-	75,202
Indemnity income	3,421	-
Other income	16,834	11,618
	$ 147,665	$ 157,579

(Note) 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 inventories and 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.

(23) Other gains and losses

	For the years ended December 31,
	2025	2024
Net gain on financial assets at fair value through profit or loss	$ 15,734	$ 178
Net loss on disposal of property, plant and equipment	( 1,093)	( 5,472)
Loss on remeasurement of investments	( 6)	-
Gain from lease modification	35	-
Impairment loss on intangible assets	( 400)	-
Net currency exchange (loss) gain	( 15,566)	86,853
Loss on disposal of investments	-	( 846)
Other losses	( 11,221)	( 18,548)
	($ 12,517)	$ 62,165

(24) Finance costs

	For the years ended December 31,
	2025	2024
Interest expense
Bank borrowings	$ 8,140	$ 13,395
Lease liabilities	3,891	4,012
	12,031	17,407
Less: Capitalisation of qualifying assets	( 3,583)	( 2,338)
	$ 8,448	$ 15,069

(25) Expenses by nature

	For the year ended December 31, 2025
	Recognised in operating costs	Recognised in operating expenses	Total
Employee benefit expenses	$ 889,027	$ 817,757	$ 1,706,784
Depreciation	314,296	98,744	413,040
Amortisation	12,102	8,830	20,932
	$ 1,215,425	$ 925,331	$ 2,140,756
	For the year ended December 31, 2024
	Recognised in operating costs	Recognised in operating expenses	Total
Employee benefit expenses	$ 859,034	$ 830,976	$ 1,690,010
Depreciation	293,977	91,612	385,589
Amortisation	10,757	8,392	19,149
	$ 1,163,768	$ 930,980	$ 2,094,748

(26) Employee benefit expenses

	For the year ended December 31, 2025
	Recognised in operating costs	Recognised in operating expenses	Total
Wages and salaries	$ 739,177	$ 694,960	$ 1,434,137
Labour and health insurance expenses	77,057	60,801	137,858
Pension costs	32,390	30,996	63,386
Other personnel expenses	40,403	31,000	71,403
	$ 889,027	$ 817,757	$ 1,706,784
	For the year ended December 31, 2024
	Recognised in operating costs	Recognised in operating expenses	Total
Wages and salaries	$ 717,122	$ 711,398	$ 1,428,520
Labour and health insurance expenses	71,604	58,683	130,287
Pension costs	31,538	30,987	62,525
Other personnel expenses	38,770	29,908	68,678
	$ 859,034	$ 830,976	$ 1,690,010

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 $1\% \sim 10\%$ for employees' compensation, of which at least $60\%$ must be distributed to non-managerial employees, and shall not be higher than $3\%$ for directors' remuneration. Employees' 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 $10,787 and$ 10,770 for the years ended December 31, 2025 and 2024, respectively; directors' remuneration was accrued at $4,500 for both of the years ended December 31, 2025 and 2024. The aforementioned amounts 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 24, 2026, the employees' compensation and directors' remuneration were $10,669 and $4,500, respectively, and the employees' compensation will be

distributed in the form of cash. The total amount of the employees' compensation and directors' remuneration for 2024 as resolved by the Board of Directors was $15,277, and the employees' compensation was distributed in the form of cash. The difference between the aforementioned amount and the amount of $15,270 recognised in the 2024 financial statements by $7, mainly caused by estimation differences, had been adjusted in the profit or loss for 2025. 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:

	For the years ended December 31,
	2025	2024
Current tax:
Current tax on profits for the year	$ 287,981	$ 319,481
Tax on undistributed earnings	8,116	24,020
Over provision of prior year’s income tax	( 34,599)	( 12,482)
	261,498	331,019
Deferred tax:
Origination and reversal of temporary differences	( 3,151)	2,030
Income tax expense	$ 258,347	$ 333,049

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

	For the years ended December 31,
	2025	2024
Remeasurement of defined benefit obligation	$ 3,797	$ 8,243
Investment loss	217	-
	$ 4,014	$ 8,243

B. Reconciliation between income tax expense and accounting profit:

	For the years ended December 31,
	2025	2024
Tax calculated based on profit before tax and statutory tax rate	$ 335,533	$ 367,379
Effect of amount not allowed to be recognised under regulations	( 55,612)	( 48,949)
Effect from investment tax credits	( 6,850)	( 199)
Effect from loss carryfoward	( 1,798)	( 81)
Taxable loss not recognised as deferred tax assets	11,956	3,361
Effect from Alternative Minimum Tax	1,400	-
Change in assessment of realisation of deferred tax assets	201	-
Tax on undistributed earnings	8,116	24,020
Over provision of prior year’s income tax	( 34,599)	( 12,482)
Income tax expense	$ 258,347	$ 333,049

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

	For the year ended December 31, 2025
	January 1	Recognised in profit or loss	Recognised in other comprehensive income or loss	December 31
Deferred tax assets
Temporary differences:
Allowance for doubtful accounts	$ 6,180	($ 2,491)	$ -	$ 3,689
Unrealised loss on inventories from market value decline	16,064	( 1,759)	-	14,305
Unrealised exchange loss	-	122	-	122
Investment loss	51,478	3,853	( 217)	55,114
Unrealised impairment loss on intangible assets	3,147	80	-	3,227
Unrealised sales returns and allowance	9,533	1,228	-	10,761
Unused compensated absences	8,751	671	-	9,422
Pensions	9,379	( 487)	( 3,797)	5,095
Loss carryforward	27,732	98	-	27,830
	$ 132,264	$ 1,315	($ 4,014)	$ 129,565

~66~

	For the year ended December 31, 2025
	January 1	Recognised in profit or loss	Recognised in other comprehensive income or loss	December 31
Deferred tax liabilities
Temporary differences:
Unrealised exchange gain	($ 1,645)	$ 1,339	$ -	($ 306)
Pensions	( 5,511)	( 1,339)	-	( 6,850)
Intangible assets identified from business combinations	( 3,672)	1,836	-	( 1,836)
Provision for land value incremental tax	( 74,666)	-	-	( 74,666)
	($ 85,494)	$ 1,836	$ -	($ 83,658)
	$ 46,770	$ 3,151	($ 4,014)	$ 45,907
	For the year ended December 31, 2024
	January 1	Recognised in profit or loss	Recognised in other comprehensive income or loss	December 31
Deferred tax assets
Temporary differences:
Allowance for doubtful accounts	$ 4,187	$ 1,993	$ -	$ 6,180
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

~67~

	For the year ended December 31, 2024
	January 1	Recognised in profit or loss	Recognised in other comprehensive income or loss	December 31
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

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

December 31, 2025
Year incurred	Amount filed/ approved	Unused amount	Unrecognised deferred tax assets	Expiry year
2016~2025	$ 496,733	$ 473,050	$ 333,901	2026~2035
December 31, 2024
Year incurred	Amount filed/ approved	Unused amount	Unrecognised deferred tax assets	Expiry year
2015~2024	$ 442,905	$ 423,992	$ 285,334	2025~2034

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 24, 2026.

(28) Earnings per share

	For the year ended December 31, 2025
	Amount after tax	Weighted average number of ordinary shares outstanding (shares in thousands)	Earnings per share (in dollars)
Basic earnings per share
Profit attributable to ordinary shareholders of the parent	$ 927,659	178,696	$ 5.19
Diluted earnings per share
Profit attributable to ordinary shareholders of the parent	$ 927,659	178,696
Assumed conversion of all dilutive potential ordinary shares
Employees’ compensation	-	218
Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	$ 927,659	178,914	$ 5.18
	For the year ended December 31, 2024
	Amount after tax	Weighted average number of ordinary shares outstanding (shares in thousands)	Earnings per share (in dollars)
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

(29) Supplemental cash flow information

A. Investing activities with partial cash payments:

	For the years ended December 31,
	2025	2024
Acquisition of property, plant and equipment	$ 264,789	$ 392,967
Add: Beginning balance of notes payable	18,509	37,206
Beginning balance of payable on equipment (listed as “Other payables”)	6,648	8,135
Less: Ending balance of notes payable	( 11,097)	( 18,509)
Ending balance of payable on equipment (listed as “Other payables”)	( 31,274)	( 6,648)
Capitalised interest	( 3,583)	( 2,338)
Cash paid for acquisition of property, plant and equipment	$ 243,992	$ 410,813

B. Operating and investing activities with no cash flow effects:

	For the years ended December 31,
	2025	2024
(1) Write-off of allowance for uncollectible accounts	$ 15,477	$ 312
(2) Inventories transferred to property, plant and equipment	$ 12,732	$ 7,108
(3) Prepayments for equipment transferred to property, plant and equipment	$ 206,504	$ 82,728
(4) Right-of-use assets transferred to property, plant and equipment	$ 345	$ -

C. On June 30, 2025, the Group lost control over Standard Pharma Holding Co., Ltd. as it did not subscribe to the new shares in proportion to its ownership interest. The related assets and liabilities of the company are as follows:

	June 30, 2025
Cash and cash equivalents	$ 1,107
Non-current assets	899
Current liabilities	( 1 )
Carrying amount of net assets	$ 2,005

On June 30, 2025, the Group’s ownership interest in that company was remeasured at its fair value of $1,232, resulting in a loss of $6 (listed as ‘Other gains and losses’).

~69~

(30) Changes in liabilities from financing activities

	Short-term borrowings	Lease liabilities	Long-term borrowings (including current portion)	Guarantee deposits received	Total
At January 1, 2025	$ 110,000	$ 227,455	$ 222,973	$ 8,772	$ 569,200
Changes in cash flow from financing activities	550,000	( 27,444)	( 159,027)	210	363,739
Changes in other non-cash items	–	24,867	–	–	24,867
At December 31, 2025	$ 660,000	$ 224,878	$ 63,946	$ 8,982	$ 957,806
	Short-term borrowings	Lease liabilities	Long-term borrowings (including current portion)	Guarantee deposits received	Total
At January 1, 2024	$800,000	$245,886	$ 282,000	$ 12,299	$1,340,185
Changes in cash flow from financing activities	( 690,000)	( 24,828)	( 59,027)	( 3,527)	( 777,382)
Changes in other non-cash items	–	6,397	–	–	6,397
At December 31, 2024	$110,000	$227,455	$ 222,973	$ 8,772	$ 569,200

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
Standard Pharma Holding Co., Ltd. (SPH)	Associate (Note)
Standard Pharma (Thailand) Co., Ltd. (SPTH)	Associate
Standard Union Medical (Thailand) Co., Ltd. (SUM)	Associate
Sun You Biotech Pharm Co., Ltd. (Sun You)	Other related party (The manager of the Company is Sun You’s director)
Fan Dao Nan Foundation (Fan Dao Nan)	Other related party (The corporate director of the Company)

(Note) The entity was initially a subsidiary of the Group. However, the Group lost its substantial control over the entity since June 30, 2025. Therefore, the entity’s relationship with the Group changed to associate since then.

(2) Significant related party transactions

A. Sales of goods

	For the years ended December 31,
	2025	2024
Associates	$ 115,003	$ 130,427
Other related parties	21,095	20,920
	$ 136,098	$ 151,347

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.

B. Purchases of goods

	For the years ended December 31,
	2025	2024
Associates	$ 54,507	$ 52,097
Other related parties	4,577	8,473
	$ 59,084	$ 60,570

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

(a) In July 2025, the Group's associate, Standard Pharma Holding Co., Ltd., conducted a cash capital increase in which the Company non-proportionately subscribed for shares amounting to $6,791. The subscription had been fully settled.

(b) In July 2025, in order to expand the business of the Group, the Group invested $6,164 in Standard Union Medical (Thailand) Co., Ltd.. The subscription had been fully settled.

(c) In December 2024, the Group's associate, Taiwan Biosim Co., Ltd., conducted a cash capital increase in which the Group subscribed the shares proportionately to its ownership amounting to $24,950. The subscription had been fully settled.

D. Other expenses

	For the years ended December 31,
	2025	2024
Associates	$ 43,239	$ 30,580
Other related parties	91	75
	$ 43,330	$ 30,655

E. Other income

	For the years ended December 31,
	2025	2024
Associates	$ 7,235	$ 2,627
Other related parties	1,636	1,488
	$ 8,871	$ 4,115
F. Ending balance of goods sold	December 31, 2025	December 31, 2024
Receivables from related parties:
Associates	$ 38,692	$ 29,893
Other related parties	5,942	7,606
	$ 44,634	$ 37,499

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.

G. Other receivables

	December 31, 2025	December 31, 2024
Associates	$ 20	$ 285
Other related parties	4	2
	$ 24	$ 287

H. Ending balance of goods purchased

	December 31, 2025	December 31, 2024
Payables to related parties:
Associates	$ 18,355	$ 30,349
Other related parties	1,767	2,940
	$ 20,122	$ 33,289

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

I. Other payables

	December 31, 2025	December 31, 2024
Associates	$ 8,111	$ 9,806
Other related parties	22	-
	$ 8,133	$ 9,806

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, 2025 and 2024, the carrying amount of right-of-use assets were $1,049 and $3,095, respectively.
(c) As of December 31, 2025 and 2024, the carrying amount of lease liability were $1,093 and $3,194, respectively. The Group recognised interest expense amounting to $20 and $53 (listed as 'Finance costs') for the years ended December 31, 2025 and 2024, respectively.
(d) Rent expenses

	For the years ended December 31,
	2025	2024
Other related parties	$ 441	$ 432
(3) Key management compensation
	For the years ended December 31,
	2025	2024
Salaries and other short-term employee benefits	$ 48,795	$ 50,430
Post-employment benefits	400	326
	$ 49,195	$ 50,756

8. PLEDGED ASSETS

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

Pledged asset	Book value		Purposes
	December 31, 2025	December 31, 2024
Time deposits (Note 1)	$ -	$ 8,000	Performance guarantees
Land (Note 2)	297,406	297,406	Short-term and long-term borrowings
Buildings-net (Note 2)	402,712	327,836	Short-term and long-term borrowings
Machinery-net (Note 2)	12,041	8,993	Long-term borrowings
Utility equipment-net (Note 2)	18,171	-	Long-term borrowings
Other equipment-net (Note 2)	-	110	Long-term borrowings
Construction in progress (Note 2)	-	71,179	Long-term borrowings
	$ 730,330	$ 713,524

(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, 2025 and 2024, the balances for contracts that the Group entered into for the purchase of property, plant and equipment, but not yet due were $277,642 and $338,609, respectively.

~74~

SIGNIFICANT DISASTER LOSS
None.
SIGNIFICANT EVENT AFTER THE BALANCE SHEET DATE
None.
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.

(2) Financial instruments

A. Financial instruments by category

	December 31, 2025	December 31, 2024
Financial assets
Financial assets at fair value through profit or loss
Financial assets mandatorily measured at fair value through profit or loss	$ 113,085	$ 168,627
Financial assets at fair value through other comprehensive income
Designation of equity instruments	$ 416,522	$ 508,242
Financial assets at amortised cost
Cash and cash equivalents	$ 1,833,746	$ 1,520,128
Financial assets at amortised cost	540,612	134,500
Notes receivable	276,177	283,668
Accounts receivable	1,084,909	1,039,155
Other receivables	9,560	16,567
Guarantee deposits paid	48,055	28,783
	$ 3,793,059	$ 3,022,801
Financial liabilities
Financial liabilities at amortised cost
Short-term borrowings	$ 660,000	$ 110,000
Notes payable	180,251	360,766
Accounts payable	405,789	242,304
Other payables	591,297	573,375
Long-term borrowings (including current portion)	63,946	222,973
Guarantee deposits received	8,982	8,772
	$ 1,910,265	$ 1,518,190
Lease liabilities	$ 224,878	$ 227,455

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.

~75~

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:

	December 31, 2025
	Foreign currency amount (In thousands)	Exchange rate	Book value
(Foreign currency: functional currency)
Financial assets
Monetary items
USD: NTD	$ 29,340	31.43	$ 922,156
EUR: NTD	596	36.90	21,992
JPY: NTD	677,389	0.2008	136,020
RMB: NTD	6,232	4.496	28,019
Financial liabilities
Monetary items
USD: NTD	325	31.43	10,215

~77~

	December 31, 2024
	Foreign currency amount (In thousands)	Exchange rate	Book value
(Foreign currency: functional currency)
Financial assets
Monetary items
USD: NTD	$ 20,330	32.79	$ 666,621
EUR: NTD	938	34.14	32,023
JPY: NTD	321,818	0.2099	67,550
RMB: NTD	5,005	4.478	22,412
Financial liabilities
Monetary items
USD: NTD	382	32.79	12,526

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, 2025 and 2024 would have increased/decreased by $8,784 and $6,209, respectively.

v. Total net exchange (loss) 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, 2025 and 2024 amounted to ($15,666) and $86,853, 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, 2025 and 2024 would have increased/decreased by $1,246 and $1,883, 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 $5,222 and $4,034, respectively, as a result of other comprehensive income on equity investments classified as at fair value through other comprehensive income.

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, 2025 and 2024, the Group’s borrowings at variable rate were denominated in the NTD.

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, 2025 and 2024 would have been $68 and $121 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:

~78~

~79~

For the year ended December 31, 2025

	Notes receivable	Accounts receivable	Total
Beginning balance	$ 428	$ 26,388	$ 26,816
Expected credit loss (gain)	21	( 2,571)	( 2,550)
Write-off	-	( 15,477)	( 15,477)
Ending balance	$ 449	$ 8,340	$ 8,789

For the year ended December 31, 2024

	Notes receivable	Accounts receivable	Total
Beginning balance	$ 237	$ 15,368	$ 15,605
Expected credit loss	191	11,332	11,523
Write-off	-	( 312)	( 312)
Ending balance	$ 428	$ 26,388	$ 26,816

v. The counterparties of the financial assets at amortised cost held by the Group are financial institutions with high credit quality, thus, the probability of default is remote and the credit risk is insignificant.

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:

	December 31, 2025	December 31, 2024
Floating rate:
Expiring within one year	$ 2,150,000	$ 3,153,210
Expiring beyond one year	2,970	127,000
	$ 2,152,970	$ 3,280,210

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:

~80~

December 31, 2025	Within 1 year	Between 1 and 2 years	Between 2 and 5 years	Over 5 years
Short-term borrowings	$ 662,670	$ -	$ -	$ -
Notes payable	180,251	-	-	-
Accounts payable	405,789	-	-	-
Other payables	591,297	-	-	-
Lease liabilities	29,339	24,522	61,242	132,737
Long-term borrowings	59,735	4,927	-	-
Guarantee deposits received	8,962	20	-	-
December 31, 2024	Within 1 year	Between 1 and 2 years	Between 2 and 5 years	Over 5 years
Short-term borrowings	$ 111,227	$ -	$ -	$ -
Notes payable	360,766	-	-	-
Accounts payable	242,304	-	-	-
Other payables	573,375	-	-	-
Lease liabilities	27,393	23,186	53,298	149,567
Long-term borrowings	62,853	62,821	26,169	97,945
Guarantee deposits received	8,535	237	-	-

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 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:

December 31, 2025	Level 1	Level 2	Level 3	Total
Recurring fair value measurements
Financial assets at fair value through profit or loss
Equity securities and beneficiary certificates	$ 101,432	$ -	$ 11,653	$ 113,085
Financial assets at fair value through other comprehensive income
Equity securities	308,505	-	108,017	416,522
	$ 409,937	$ -	$ 119,670	$ 529,607
December 31, 2024	Level 1	Level 2	Level 3	Total
Recurring fair value measurements
Financial assets at fair value through profit or loss
Equity securities and beneficiary certificates	$ 156,277	$ -	$ 12,350	$ 168,627
Financial assets at fair value through other comprehensive income
Equity securities	390,027	-	118,215	508,242
	$ 546,304	$ -	$ 130,565	$ 676,869

(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	Open-end fund
	Closing price	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.

~81~

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 transfers between Level 1 and Level 2 in 2025 and 2024.

E. The following table presents the changes in Level 3 instruments in 2025 and 2024:

	For the years ended December 31,
	2025	2024
At January 1	$ 130,565	$ 120,696
Purchase	45,000	20,000
Disposal	( 47,828)	( 1,181)
Recognised in profit or loss	12,123	( 3,073)
Recognised in other comprehensive loss	( 20,190)	( 5,877)
At December 31	$ 119,670	$ 130,565

F. For the years ended December 31, 2025 and 2024, there was no transfer from or to Level 3.

G. Financial 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.

~82~

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:

	Fair value at December 31, 2025	Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs to fair value
Non-derivative equity instrument:
Unlisted stocks	$ 48,251	Market comparable companies	Discount for lack of marketability	30%	The higher the discount for lack of marketability, the lower the fair value
Unlisted stocks	59,960	Discounted cash flow	Weighted-average cost of capital	8.32% ~ 15%	The higher the weighted-average cost of capital, the lower the fair value
Unlisted stocks	11,459	Net asset value	Not applicable	—	Not applicable
	Fair value at December 31, 2024	Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs to fair value
Non-derivative equity instrument:
Unlisted stocks	$ 92,873	Market comparable companies	Discount for lack of marketability	30%	The higher the discount for lack of marketability, the lower the fair value
Unlisted stocks	22,180	Discounted cash flow	Weighted-average cost of capital	15%	The higher the weighted-average cost of capital, the lower the fair value
Unlisted stocks	15,512	Net asset value	Not applicable	—	Not applicable

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:

	Input	Change	December 31, 2025
			Recognised in profit or loss		Recognised in other comprehensive income
			Favourable change	Unfavourable change	Favourable change	Unfavourable change
Financial assets
Equity instrument	Discount for lack of marketability	± 3%	$ 8	($ 8)	$ 2,060	($ 2,060)
Equity instrument	Weighted-average cost of capital	± 0.25% ~ ± 0.5%	$ -	$ -	$ 8,915	($ 6,030)
	Input	Change	December 31, 2024
			Recognised in profit or loss		Recognised in other comprehensive income
			Favourable change	Unfavourable change	Favourable change	Unfavourable change
Financial assets
Equity instrument	Discount for lack of marketability	± 3%	$ 55	($ 55)	$ 3,925	($ 3,925)
Equity instrument	Weighted-average cost of capital	± 0.5%	$ -	$ -	$ 1,060	($ 960)

13. SUPPLEMENTARY DISCLOSURES

(Only 2025 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 significant marketable securities at the end of the year (not including subsidiaries, associates and joint ventures): Refer to table 2.
D. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more: None.
E. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: None.
F. Significant inter-company transactions during the reporting period: 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.

(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.

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 pretax 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:

	For the year ended December 31, 2025
	Active Pharmaceutical
	Medicine	Dietary supplement	Ingredients	Others	Total
Segment revenue	$ 3,313,719	$ 2,307,447	$ 1,376,157	$ 319,654	$ 7,316,977
Revenue from internal customers	( 98,780)	( 98,942)	( 55,031)	( 41,199)	( 293,952)
Revenue from external customers	3,214,939	2,208,505	1,321,126	278,455	7,023,025
Segment profit before income tax	1,008,022	286,019	346,632	30,264	1,670,937
Segment assets	4,621,807	3,242,652	3,163,984	767,460	11,795,903
Segment liabilities	1,308,327	744,029	385,577	71,161	2,509,094

For the year ended December 31, 2024

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

(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:

	For the years ended December 31,
	2025	2024
Reportable segment income before income tax	$ 1,640,673	$ 1,774,597
Other segments profit before income tax	30,264	45,999
Inter-segment transactions	( 157,061)	( 193,237)
Profit before income tax	$ 1,513,876	$ 1,627,359

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:

	For the years ended December 31,
	2025	2024
Revenue from sales of medicine	$ 3,214,939	$ 3,098,102
Revenue from sales of dietary supplement	2,208,505	2,088,392
Revenue from sales of Active Pharmaceutical Ingredients	1,321,126	1,330,112
Revenue from rendering of services	1,600	2,029
Others	276,855	270,588
	$ 7,023,025	$ 6,789,223

(6) Geographical information

Geographical information for the years ended December 31, 2025 and 2024 is as follows:

	For the years ended December 31,
	2025		2024
	Revenue (Note 1)	Non-current assets (Note 2)	Revenue (Note 1)	Non-current assets (Note 2)
Taiwan	$ 5,497,633	$ 4,770,910	$ 5,311,661	$ 4,632,629
Japan	582,124	-	437,033	-
Others (individually less than 4%)	943,268	126,263	1,040,529	137,871
	$ 7,023,025	$ 4,897,173	$ 6,789,223	$ 4,770,500

(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, 2025 and 2024 did not reach 10% of consolidated operating revenue.

~87~

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

Loans to others

For the year ended December 31, 2025

Table 1

Expressed in thousands of NTD

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		Limit on loans granted to a single party	Ceiling on total loans granted	Note
													Item	Value
1	Jiangsu Standard Biotech Pharmaceutical Co., Ltd.	Jiangsu Standard-Dia Biopharma Co., Ltd.	Other receivables	Yes	$ 9,217	$ 9,217	$ 9,217	1.20%	2	$ -	Operating capital	$ 9,217	-	$ -	$ 30,013	$ 36,015	(Note 3) (Note 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 or reviewed consolidated financial statements.
(c) 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:
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 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 fully recognised allowance for doubtful accounts and established an improvement plan for regular follow-up. Until the improvement plan is fully implemented, the Company will publicly disclose its implementation status on a quarterly basis, submit quarterly reports to the Board of Directors for monitoring, and report on the progress at the subsequent shareholders' meeting.

Note 5: Foreign currencies were translated into New Taiwan Dollars with exchange rate as of December 31, 2025 as follows: RMB: NTD 1:4.496.

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, 2025

Table 2
Expressed in thousands of NTD

Securities held by	Marketable securities (Note 1)	Relationship with the securities issuer	General ledger account (Note 2)	Number of shares	As of December 31, 2025			Note
					Book value	Ownership (%)	Fair value
Standard Chem. & Pharm. Co., Ltd.	Stocks:
	Sun You Biotech Pharm Co., Ltd.	The manager of the Company is Sun You Biotech Pharm Co., Ltd.'s director	3	3,378,006	$ 40,232	18.13%	$ 40,232	-
	Rossmax International Ltd.	-	3	4,098,000	63,939	4.95%	63,939	-
	Easywell Biomedicals, Inc.	-	3	6,794,600	243,247	5.45%	243,247	-
	Rock BioMedical, Inc.	-	3	1,500,000	37,320	1.24%	37,320	-
	Structured investments:
	Cathay United NTD Conservative Structured Products	-	2	-	100,000	-	100,000	-
	Corporate Bonds:
	Mercuries Life Subordinated Bonds	-	4	-	90,741	-	90,741	-
	Advpharma Inc.	Beneficiary certificates:
Syngen Biotech Co., Ltd.	UPAMC James Bond Money Market Fund	-	1	569,746	10,063	-	10,063	-
	Stocks:
	Leeuwenhoek Laboratories Co. Ltd.	-	3	2,000,000	22,640	5.25%	22,640	-

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'.
Only transactions amounting to more than $10,000 are disclosed.
Note 2: The general ledger account is classified into the following four categories:
1. Financial assets at fair value through profit or loss - current
2. Financial assets at amortised cost - current
3. Financial assets at fair value through other comprehensive income - non-current
4. Financial assets at amortised cost - non-current

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

Significant inter-company transactions during the reporting period

For the year ended December 31, 2025

Table 3
Expressed in thousands of NTD

Number (Note 2)	Company name	Counterparty	Relationship (Note 3)	General ledger account	Transaction
					Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note 4)
0	Standard Chem. & Pharm. Co., Ltd.	Syngen Biotech Co., Ltd.	1	Purchases	$	72,449 1 ~ 4 month(s) after monthly billings.	1%
			1	Other income	(	10,298) 1 month after monthly billings.	-
			1	Accounts payable	(	21,887)	-
		Souriree Biotech & Pharm. Co., Ltd.	1	Purchases		83,826 1 ~ 4 month(s) after monthly billings.	1%
			1	Accounts payable	(	13,784)	-
		Syn-Tech Chem. & Pharm. Co., Ltd.	1	Purchases		44,465 1 ~ 4 month(s) after monthly billings.	-
			1	Accounts payable	(	10,632)	-
		Jiangsu Standard Biotech Pharmaceutical Co., Ltd.	1	Other expenses		16,095 1 ~ 4 month(s) after monthly billings.	-
		Standard Chem. & Pharm. Philippines, Inc.	1	Prepayments		28,218	-
1	Syn-Tech Chem. & Pharm. Co., Ltd.	Souriree Biotech & Pharm. Co., Ltd.	3	Sales	(	10,433) 1 ~ 4 month(s) after monthly billings.	-
2	Syngen Biotech Co., Ltd.	Jiangsu Standard Biotech Pharmaceutical Co., Ltd.	3	Sales	(	16,179) 3 month(s) after monthly billings.	-

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.

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

Information on investees

For the year ended December 31, 2025

Table 4
Expressed in thousands of NTD

Investor	Investee	Location	Main business activities	Initial investment amount		Shares held as at December 31, 2025			Net profit (loss) of the investee for the year ended December 31, 2025	Investment income (loss) recognised for the year ended December 31, 2025	Note
				Balance as at December 31, 2025	Balance as at December 31, 2024	Number of shares	Ownership (%)	Book value
Standard Chem. & Pharm. Co., Ltd.	Standard Pharmaceutical Co., Ltd.	Samou	Research and development, trading, investment and other business of medical products	$ 396,953	$ 396,953	13,000,000	100.00	$ 161,985	($ 1,958)	($ 1,738)	Subsidiary
	Chia Scheng International Co., Ltd.	Taiwan	Sale of various medical supplements	161,356	161,356	14,553,000	100.00	18,552	3,811	3,791	Subsidiary
	Standard Chem. & Pharm. Philippines, Inc.	Philippines	Import and export of various medical products, medicine, supplements	12,340	12,340	392,014	100.00	( 9,785)	( 8,531)	( 8,531)	Subsidiary
	Inforight Technology Co., Ltd.	Taiwan	Wholesale of multi-function printers and information software	5,000	5,000	500,000	100.00	5,775	122	122	Subsidiary
	Souriree Biotech & Pharm. Co., Ltd.	Taiwan	Manufacturing of western medicine and retail and wholesale of various medicines	41,871	41,871	5,673,908	93.58	49,707	3,744	4,512	Subsidiary
	Multipower Enterprise Corp.	Taiwan	Import and export of western medicine, nourishment and function food, processing, manufacturing and sale of food	293,063	293,063	19,840,600	90.72	285,575	( 39,494)	( 36,201)	Subsidiary
	Advpharma Inc.	Taiwan	Research and development, manufacturing and sale of various medicine	525,933	525,933	53,226,806	88.71	279,209	9,493	8,485	Subsidiary
	Syngen Biotech Co., Ltd.	Taiwan	Research and development, manufacturing and sale of APIs, biopesticide, fertiliser and biochemical nutrition, sale of preventive medicine	330,203	330,203	12,651,146	46.68	1,082,780	271,593	121,694	Subsidiary (Note 1)
	Syn-Tech Chem. & Pharm. Co., Ltd.	Taiwan	Manufacturing and sale of APIs, reagent, surfactant, Chinese, western, and veterinary medicinal products	720,941	720,941	12,675,959	28.43	846,231	261,846	66,317	Subsidiary (Note 2)
	Ho Yao Biopharm Co., Ltd.	Taiwan	Research and development of new medicine	73,500	46,800	6,350,000	90.71	45,827	( 14,457)	( 12,843)	Subsidiary

Table 4 page 1

Investor	Investee	Location	Main business activities	Initial investment amount		Shares held as at December 31, 2025			Net profit (loss) of the investee for the year ended December 31, 2025	Investment income (loss) recognised for the year ended December 31, 2025	Note
				Balance as at December 31, 2025	Balance as at December 31, 2024	Number of shares	Ownership (%)	Book value
Standard Chem. & Pharm. Co., Ltd.	Standard Chem. & Pharm. Vietnam Co., Ltd.	Vietnam	Import and export of various medicine	$ 6,414	$ 6,414	-	100.00	$ 2,935	($ 1,903)	($ 1,903)	Subsidiary
	We Can Medicines Co., Ltd.	Taiwan	Wholesale of various medicine	299,915	299,915	13,444,909	29.82	302,640	( 73,212)	( 21,886)	Associate
	Taiwan Biosim Co., Ltd.	Taiwan	Research and development of various medicine	74,850	74,850	7,485,000	49.90	80,199	31,211	14,580	Associate
	Standard Pharma Holding Co., Ltd.	Thailand	Sale of various medical supplements and investments	8,190	-	446,886	49.50	5,570	( 7,271)	( 3,615)	Associate (Note 3)
	Standard Union Medical (Thailand) Co., Ltd.	Thailand	Sale of various medical supplements	6,164	-	670,000	20.00	4,499	( 14,894)	( 2,026)	Associate (Note 4)
Syngen Biotech Co., Ltd	Syngen Biotech International Sdn. Bhd.	Malaysia	Research and development, manufacturing and sale of APIs and biochemical nutrition, sale of preventive medicine	14,064	14,064	2,000,000	100.00	6,457	( 488)	( 488)	Subsidiary (Note 5)
	Jhan Shuo Biopharma Co., Ltd.	Taiwan	Manufacturing, wholesale and sale of western medicine	100	100	10,000	100.00	102	1	-	Subsidiary (Note 5)
	GENEFERM BIOTECHNOLOGY CO., LTD.	Taiwan	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.	273,840	273,840	12,000,000	28.94	306,721	28,862	8,091	Associate (Note 5)
Syn-Tech Chem. & Pharm. Co., Ltd.	Advpharma Inc.	Taiwan	Research and development, manufacturing and sale of various medicine	9,626	9,626	1,495,414	2.49	8,031	9,493	-	(Note 5)

Note 1: 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 2: The Company is the single largest corporate shareholder of Syn-Tech Chem. & Pharm. Co., Ltd. and has substantial control over it.
Note 3: It was newly established during the second quarter of 2025.
Note 4: It was acquired in the third quarter of 2025.
Note 5: Not required to disclose income (loss) recognised.
Note 6: Foreign currencies were translated into New Taiwan Dollars using the following exchange rates.
Initial investment amount, ending balances and carrying value were translated using the exchange rate as at December 31, 2025 (USD : NTD 1 : 31.43 : PHP : NTD 1 : 0.5335 : VND : NTD 1 : 0.00118 : THB : NTD 1 : 1.0019 : MYR : NTD 1 : 7.7395) :
Profit and loss were translated using the weighted-average exchange rate for the year ended December 31, 2025 (USD : NTD 1 : 31.13 : PHP : NTD 1 : 0.5416 : VND : NTD 1 : 0.00120 : THB : NTD 1 : 0.9524 : MYR : NTD 1 : 7.2722).

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

Information on investments in Mainland China

For the year ended December 31, 2025

Table 5
Expressed in thousands of NTD

Investee in Mainland China	Main business activities	Paid-in capital	Investment method	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2025	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year ended December 31, 2025		Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2025	Net income (loss) of investee for the year ended December 31, 2025	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised for the year ended December 31, 2025	Book value of investments in Mainland China as of December 31, 2025	Accumulated amount of investment income remitted back to Taiwan as of December 31, 2025
					Remitted to Mainland China	Remitted back to Taiwan
Jiangsu Standard Biotech Pharmaceutical Co., Ltd.	Research and development, technical consulting and technical services of medicine	$ 377,160	(Note 1)	$ 282,557	$ -	$ -	$ 282,557	($ 2,955)	100.00	($ 2,955)	$ 119,398	$ -	(Note 4) (Note 5)
Jiangsu Standard-Dia Biopharma Co., Ltd.	Research and development, manufacturing and sale of various medicine	190,608	(Note 2)	-	-	-	-	13,062	55.00	7,183	( 9,696)	-	(Note 4)
Shanghai Standard Pharmaceuticals Co., Ltd.	Sale of various medicine and dietary supplement	12,572	(Note 3)	6,286	6,286	-	12,572	( 960)	100.00	( 960)	6,679	-	(Note 4)
Company name	Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2025	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 6)
---	---	---	---
Standard Chem. & Pharm. Co., Ltd.	$ 295,129	$ 389,732	$ 5,572,085

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: In the first quarter of 2025, the Company obtained approval from the Investment Commission of MOEA for a reinvestment transaction whereby Standard Pharmaceutical Co., Ltd. converted its USD 3,000,000 claim against Jiangsu Standard Biotech Pharmaceutical Co., Ltd. into share capital of the aforementioned mainland China company.
Note 6: Ceiling is the higher of net assets or 60% of consolidated equity.
Note 7: 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, 2025 (USD:NTD 1:31.43 : RMB:NTD 1:4.496) : Investment gains or losses were translated using the weighted-average exchange rate for the year ended December 31, 2025 (USD:NTD 1:31.13 : RMB:NTD 1:4.3287).

Table 5 page 1

AI assistant

S.C.P.C Audit Report / Information 2025

51900_rns_2026-04-24_efc09857-b82d-4423-a008-9cda95184ec8.pdf

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

INDEPENDENT AUDITORS' REPORT TRANSLATED FROM CHINESE

Opinion

Basis for opinion

Key audit matters

Existence of domestic sales revenue from human medicines and dietary supplements

Description

How our audit addressed the matter

Other matter – Reference to the audits of other auditors

Other matter – Parent company only financial reports

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

Auditors' responsibilities for the audit of the consolidated financial statements

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

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

1. HISTORY AND ORGANISATION

2. THE DATE OF AUTHORISATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORISATION

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

4. SUMMARY OF MATERIAL ACCOUNTING POLICIES

(16) Property, plant and equipment

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

(11) Impairment of non-financial assets

(16) Share capital – common stock

(17) Capital surplus

(27) Income tax

8. PLEDGED ASSETS

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT COMMITMENTS

Price risk

(3) Fair value information

13. SUPPLEMENTARY DISCLOSURES

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

(5) Information on product and service

AI assistant

S.C.P.C — Audit Report / Information 2025

51900_rns_2026-04-24_efc09857-b82d-4423-a008-9cda95184ec8.pdf

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

INDEPENDENT AUDITORS' REPORT TRANSLATED FROM CHINESE

Opinion

Basis for opinion

Key audit matters

Existence of domestic sales revenue from human medicines and dietary supplements

Description

How our audit addressed the matter

Other matter – Reference to the audits of other auditors

Other matter – Parent company only financial reports

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

Auditors' responsibilities for the audit of the consolidated financial statements

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

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

1. HISTORY AND ORGANISATION

2. THE DATE OF AUTHORISATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORISATION

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

4. SUMMARY OF MATERIAL ACCOUNTING POLICIES

(16) Property, plant and equipment

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

(11) Impairment of non-financial assets

(16) Share capital – common stock

(17) Capital surplus

(27) Income tax

8. PLEDGED ASSETS

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT COMMITMENTS

Price risk

(3) Fair value information

13. SUPPLEMENTARY DISCLOSURES

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

(5) Information on product and service

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S.C.P.C Audit Report / Information 2025