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

Contents	Page
1. Cover Page	1
2. Table of Contents	2 ~ 3
3. Independent Auditors' Report	4 ~ 9
4. Parent Company Only Balance Sheets	10 ~ 11
5. Parent Company Only Statements of Comprehensive Income	12
6. Parent Company Only Statements of Changes in Equity	13
7. Parent Company Only Statements of Cash Flows	14 ~ 15
8. Notes to the Parent Company Only Financial Statements	16 ~ 75
(1) HISTORY AND ORGANISATION	16
(2) THE DATE OF AUTHORISATION FOR ISSUANCE OF THE PARENT COMPANY ONLY FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORISATION	16
(3) APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS	16 ~ 17
(4) SUMMARY OF MATERIAL ACCOUNTING POLICIES	17 ~ 28
(5) CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND	28

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Contents

Page

KEY SOURCES OF ASSUMPTION UNCERTAINTY

(6) DETAILS OF SIGNIFICANT ACCOUNTS 29 ~ 58
(7) RELATED PARTY TRANSACTIONS 58 ~ 62
(8) PLEDGED ASSETS 63
(9) SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT COMMITMENTS 63
(10) SIGNIFICANT DISASTER LOSS 63
(11) SIGNIFICANT EVENT AFTER THE BALANCE SHEET DATE 63
(12) OTHERS 63 ~ 74
(13) SUPPLEMENTARY DISCLOSURES 74 ~ 75
(14) SEGMENT INFORMATION 75

Statements of Major Accounting Items 76 ~ 101

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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 parent company only balance sheets of STANDARD CHEM. & PHARM. CO., LTD. (the “Company”) as of December 31, 2025 and 2024, and the related parent company only statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the parent company only 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 parent company only financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for opinion

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

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Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Company’s 2025 parent company only financial statements. These matters were addressed in the context of our audit of the parent company only financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

Key audit matter of the Company’s 2025 parent company only financial statements is as follows:

Existence of domestic sales revenue from human medicines

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 Company is primarily engaged in the manufacturing and sales of human medicines. The Company’s sales is mainly domestic-based and its customers are numerous, including hospitals, clinics and pharmacies 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 a key audit matter.

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 the 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 4.05% and 5.67% of total assets as of December 31, 2025 and 2024, respectively, and the share of comprehensive income of subsidiaries, associates and joint ventures accounted for under equity method amounted to ($21,999) thousand and ($6,775) thousand, constituting (3.05%) and (0.67%) of total comprehensive income for the years then ended, respectively.

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

Management is responsible for the preparation and fair presentation of the parent company only financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and for such internal control as management determines is necessary to enable the preparation of parent company only financial statements that are free from material misstatement, whether due to fraud or error.

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

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

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

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

As part of an audit 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 parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than 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 Company’s internal control.

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Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the 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.

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From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements 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.

Yeh, Fang-Ting

Independent Accountants

Hsu, Huei-Yu

PricewaterhouseCoopers, Taiwan

Republic of China

February 24, 2026

The accompanying parent company only 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 parent company only 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.
PARENT COMPANY ONLY 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)	$ 344,945	5	$ 300,865	5
1110	Financial assets at fair value through profit or loss - current	5(2) and 6(3)	-	-	1,083	-
1136	Financial assets at amortised cost - current	6(2) and 8	237,401	3	8,000	-
1150	Notes receivable, net	6(5), 7 and 12	87,087	1	91,597	1
1170	Accounts receivable, net	6(5), 7 and 12	659,898	9	622,288	9
1200	Other receivables	7	3,446	-	13,573	-
130X	Inventories	5(2) and 6(6)	731,818	10	755,691	11
1410	Prepayments	7	70,992	1	59,733	1
1479	Other current assets		1,983	-	2,474	-
11XX	Total current assets		2,137,570	29	1,855,304	27
Non-current assets
1510	Financial assets at fair value through profit or loss - non-current	5(2) and 6(3)	7,740	-	7,643	-
1517	Financial assets at fair value through other comprehensive income - non-current	5(2) and 6(4)	391,014	5	483,025	7
1535	Financial assets at amortised cost - non-current	6(2)	90,741	1	-	-
1550	Investments accounted for under equity method	6(7) and 7	3,178,163	42	3,132,078	46
1600	Property, plant and equipment	6(8) and 7	1,310,096	18	1,068,122	16
1755	Right-of-use assets	6(9) and 7	6,882	-	8,684	-
1760	Investment property, net	6(10)	62,343	1	62,558	1
1780	Intangible assets	6(11)	2,352	-	2,567	-
1840	Deferred income tax assets	6(25)	76,884	1	76,632	1
1915	Prepayments for equipment	6(8) and 7	159,447	2	142,844	2
1920	Guarantee deposits paid		40,648	1	22,249	-
1990	Other non-current assets		6,518	-	8,975	-
15XX	Total non-current assets		5,332,828	71	5,015,377	73
1XXX	Total assets		$ 7,470,398	100	$ 6,870,681	100

(Continued)

STANDARD CHEM. & PHARM. CO., LTD.
PARENT COMPANY ONLY 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)	$ 530,000	7	$ 110,000	2
2130	Contract liabilities - current	6(18)	39,657	1	43,587	1
2150	Notes payable		20,874	-	153,311	2
2170	Accounts payable	7	257,767	3	131,634	2
2200	Other payables	7	279,214	4	262,150	4
2230	Current income tax liabilities	6(25)	74,909	1	106,239	1
2280	Lease liabilities - current	6(9) and 7	5,063	-	5,030	-
2310	Receipts in advance		120	-	320	-
21XX	Total current liabilities		1,207,604	16	812,271	12
Non-current liabilities
2570	Deferred income tax liabilities	6(25)	61,992	1	62,900	1
2580	Lease liabilities - non-current	6(9) and 7	1,941	-	3,811	-
2640	Net defined benefit liabilities - non-current	6(13)	55,469	1	76,632	1
2645	Guarantee deposits received		8,962	-	8,535	-
2670	Other non-current liabilities	6(7)	9,785	-	1,517	-
25XX	Total non-current liabilities		138,149	2	153,395	2
2XXX	Total liabilities		1,345,753	18	965,666	14
Equity
Share capital
3110	Common stock	6(14)	1,786,961	24	1,786,961	26
3200	Capital surplus	6(7)(15)	301,112	4	300,128	4
	Retained earnings	6(4)(7)(16)(17)
3310	Legal reserve		1,055,980	14	964,252	14
3350	Unappropriated retained earnings		3,086,783	41	2,745,543	40
3400	Other equity interest	6(4)(7)(17)	( 106,191)	( 1)	108,131	2
3XXX	Total equity		6,124,645	82	5,905,015	86
	Significant contingent liabilities and unrecognised contract commitments	9
3X2X	Total liabilities and equity		$ 7,470,398	100	$ 6,870,681	100

The accompanying notes are an integral part of these parent company only financial statements.

STANDARD CHEM. & PHARM. CO., LTD.

PARENT COMPANY ONLY 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(18) and 7	$ 3,334,337	100	$ 3,225,953	100
5000	Operating costs	6(6)(9)(11)(13)(23)(24) and 7	( 1,759,164)	( 53)	( 1,623,286)	( 50)
5900	Net operating margin		1,575,173	47	1,602,667	50
	Operating expenses	6(9)(11)(13)(23)(24) and 7
6100	Selling expenses		( 485,260)	( 15)	( 482,987)	( 15)
6200	General and administrative expenses		( 169,595)	( 5)	( 183,739)	( 6)
6300	Research and development expenses		( 148,491)	( 4)	( 179,635)	( 6)
6450	Expected credit loss	12	( 313)	-	( 4,330)	-
6000	Total operating expenses		( 803,659)	( 24)	( 850,691)	( 27)
6900	Operating profit		771,514	23	751,976	23
	Non-operating income and expenses
7100	Interest income	6(2)(19)	5,188	-	11,352	-
7010	Other income	6(4)(10)(20) and 7	152,257	5	86,059	3
7020	Other gains and losses	6(3)(7)(21), 7 and 12	( 5,202)	-	38,780	1
7050	Finance costs	6(8)(9)(22) and 7	( 1,857)	-	( 3,418)	-
7070	Share of profit or loss of subsidiaries, associates and joint ventures accounted for under equity method	6(7)
			129,797	4	177,747	6
7000	Total non-operating income and expenses		280,183	9	310,520	10
7900	Profit before income tax		1,051,697	32	1,062,496	33
7950	Income tax expense	6(25)	( 124,038)	( 4)	( 181,995)	( 6)
8200	Profit for the year		$ 927,659	28	$ 880,501	27
	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(13)	$ 12,686	-	$ 38,791	1
8316	Unrealised (loss) gain on valuation of investments in equity instruments measured at fair value through other comprehensive income	6(4)(17)
			( 215,191)	( 6)	88,637	3
8330	Share of other comprehensive income of subsidiaries, associates and joint ventures accounted for under equity method - will not be reclassified to profit or loss	6(7)
8349	Income tax related to components of other comprehensive income that will not be reclassified to profit or loss	6(25)	1,312	-	124	-
			( 2,537)	-	( 7,758)	-
	Components of other comprehensive income (loss) that will be reclassified to profit or loss
8361	Financial statements translation differences of foreign operations	6(7)(17)	( 3,798)	-	11,065	-
8380	Share of other comprehensive income of subsidiaries, associates and joint ventures accounted for under equity method - will be reclassified to profit or loss	6(7)(17)
			162	-	876	-
8300	Total other comprehensive (loss) income for the year		($ 207,366)	( 6)	$ 131,735	4
8500	Total comprehensive income for the year		$ 720,293	22	$ 1,012,236	31
	Earnings per share (in dollars)	6(26)
9750	Basic		$ 5.19		$ 4.93
9850	Diluted		$ 5.18		$ 4.92

The accompanying notes are an integral part of these parent company only financial statements.

STANDARD CHEM. & PHARM. CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

	Notes	Common stock	Capital Surplus			Retained Earnings			Other Equity Interest		Total equity
			Additional paid-in capital	Difference between the price for acquisition or disposal of subsidiaries and carrying amount	Change in net equity of associates and joint ventures accounted for under equity method	Others	Legal reserve	Special reserve	Unappropriated retained earnings	Financial statements translation differences of foreign operations
For the year ended December 31, 2024
Balance at January 1, 2024		$ 1,786,961	$ 152,088	$ 60,898	$ 10,366	$ 534	$ 878,245	$ 115,935	$ 2,280,812	($ 7,452)	$ 20,629
Profit for the year		-	-	-	-	-	-	-	880,501	-	880,501
Other comprehensive income for the year	6(17)	-	-	-	-	-	-	-	30,363	11,941	89,431
Total comprehensive income for the year		-	-	-	-	-	-	-	910,864	11,941	89,431
Change in net equity of associates and joint ventures 6(7)(15) accounted for under equity method		-	-	-	76,170	-	-	-	-	-	76,170
Overdue cash dividends payable	6(15)	-	-	-	-	72	-	-	-	-	72
Disposal of financial assets at fair value through other comprehensive income	6(4)(17)	-	-	-	-	-	-	-	6,418	-	( 6,418 )
Distribution of 2023 earnings:
Legal reserve		-	-	-	-	-	86,007	-	( 86,007 )	-	-
Special reserve	6(16)	-	-	-	-	-	-	( 115,935 )	115,935	-	-
Cash dividends	6(16)	-	-	-	-	-	-	-	( 482,479 )	-	( 482,479 )
Balance at December 31, 2024		$ 1,786,961	$ 152,088	$ 60,898	$ 86,536	$ 606	$ 964,252	$ -	$ 2,745,543	$ 4,489	$ 103,642
For the year ended December 31, 2025
Balance at January 1, 2025		$ 1,786,961	$ 152,088	$ 60,898	$ 86,536	$ 606	$ 964,252	$ -	$ 2,745,543	$ 4,489	$ 103,642
Profit for the year		-	-	-	-	-	-	-	927,659	-	927,659
Other comprehensive income (loss) for the year	6(17)	-	-	-	-	-	-	-	11,415	( 3,636 )	( 215,145 )
Total comprehensive income (loss) for the year		-	-	-	-	-	-	-	939,074	( 3,636 )	( 215,145 )
Adjustment for non-proportional subscription to subsidiaries' new shares	6(7)	-	-	-	-	-	-	-	( 1,298 )	-	( 1,298 )
Change in net equity of associates and joint ventures 6(7)(15) accounted for under equity method		-	-	-	878	-	-	-	-	-	878
Overdue cash dividends payable	6(15)	-	-	-	-	106	-	-	-	-	106
Disposal of financial assets at fair value through other comprehensive income	6(4)(17)	-	-	-	-	-	-	-	( 4,459 )	-	4,459
Distribution of 2024 earnings:
Legal reserve		-	-	-	-	-	91,728	-	( 91,728 )	-	-
Cash dividends	6(16)	-	-	-	-	-	-	-	( 500,349 )	-	( 500,349 )
Balance at December 31, 2025		$ 1,786,961	$ 152,088	$ 60,898	$ 87,414	$ 712	$ 1,055,980	$ -	$ 3,086,783	$ 853	($ 107,044 )

The accompanying notes are an integral part of these parent company only financial statements.

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STANDARD CHEM. & PHARM. CO., LTD.

PARENT COMPANY ONLY 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		$ 1,051,697	$ 1,062,496
Adjustments
Adjustments to reconcile profit (loss)
Net (gain) loss on financial assets at fair value through profit and loss	6(3)(21)
Expected credit loss	12	( 2,679 )	1,702
Reversal of allowance for inventory market price decline	6(6)	313	4,330
Share of profit of subsidiaries, associates and joint ventures accounted for under equity method	6(7)	( 7,045 )	( 3,407 )
Loss on remeasurement of investments	6(7)(21)	( 129,797 )	( 177,747 )
Depreciation	6(8)(9)(10)	6	-
Net (gain) loss on disposal of property, plant and equipment	6(21)	128,437	111,382
Amortisation	6(23)	5	2
Dividend income	6(20)	( 9,007 )	8,743
Interest income	6(19)	( 90,527 )	( 11,603 )
Interest expense	6(22)	1,857	3,418
Changes in operating assets and liabilities
Changes in operating assets
Financial assets at fair value through profit or loss		3,665	1,176
Notes receivable		4,510	17,368
Accounts receivable		( 37,923 )	( 48,123 )
Other receivables		10,717	( 5,060 )
Inventories		30,918	( 48,130 )
Prepayments		( 11,259 )	( 10,833 )
Other current assets		491	1,757
Changes in operating liabilities
Contract liabilities - current		( 3,930 )	8,688
Notes payable		( 127,826 )	10,239
Accounts payable		126,133	( 35,126 )
Other payables		( 4,569 )	11,293
Receipts in advance		( 200 )	( 299 )
Net defined benefit liabilities - non-current		( 8,477 )	( 23,634 )
Cash inflow generated from operations		938,326	867,280
Dividends received		227,443	133,296
Interest received		4,598	14,153
Interest paid		( 1,641 )	( 3,680 )
Income tax paid		( 159,065 )	( 184,981 )
Net cash flows from operating activities		1,009,661	826,068

(Continued)

STANDARD CHEM. & PHARM. CO., LTD.
PARENT COMPANY ONLY 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		($ 229,401 )	$ -
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 )	( 63,055 )
Proceeds from disposal of financial assets at fair value through other comprehensive income - non-current	6(4)
Acquisition of investments accounted for under equity method	6(7)
Cash paid for acquisition of property, plant and equipment	6(27)
Interest paid for acquisition of property, plant and equipment	6(8)(22)(27)	( 157,004 )	( 159,436 )
Proceeds from disposal of property, plant and equipment		5	13,313
Acquisition of intangible assets	6(11)	( 1,159 )	( 647 )
Increase in prepayments for equipment		( 202,924 )	( 153,940 )
(Increase) decrease in guarantee deposits paid		( 18,399 )	16,042
Increase in other non-current assets		( 5,176 )	( 8,859 )
Net cash flows used in investing activities		( 879,194 )	( 402,344 )
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in short-term borrowings	6(28)	1,690,000	660,000
Decrease in short-term borrowings	6(28)	( 1,270,000 )	( 1,010,000 )
Payments of lease liabilities	6(28)	( 6,517 )	( 6,006 )
Increase (decrease) in guarantee deposit received	6(28)	427	( 198 )
Overdue cash dividends payable	6(15)	52	50
Payments of cash dividends	6(16)	( 500,349 )	( 482,479 )
Net cash flows used in financing activities		( 86,387 )	( 838,633 )
Net increase (decrease) in cash and cash equivalents		44,080	( 414,909 )
Cash and cash equivalents at beginning of year	6(1)	300,865	715,774
Cash and cash equivalents at end of year	6(1)	$ 344,945	$ 300,865

The accompanying notes are an integral part of these parent company only financial statements.

~16~

STANDARD CHEM. & PHARM. CO., LTD.

NOTES TO THE PARENT COMPANY ONLY 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.

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

2. THE DATE OF AUTHORISATION FOR ISSUANCE OF THE PARENT COMPANY ONLY FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORISATION

These parent company only 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 Company’s financial condition and financial performance based on the Company’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 Company

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
Amendments to IFRS 17, ‘Insurance contracts’	January 1, 2023

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New Standards, Interpretations and Amendments	Effective date by IASB
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 Company’s financial condition and financial performance based on the Company’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 Company’s financial condition and financial performance based on the Company’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 the parent company only financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

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

(2) Basis of preparation

A. Except for the following items, the parent company only 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 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 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”) requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the parent company only financial statements are disclosed in Note 5, ‘CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY’.

(3) Foreign currency translation

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

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 parent company only statements of comprehensive income within other gains and losses.

(4) 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;
(c) Assets that are expected to be realised within 12 months after the reporting period;
(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.

(5) 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 meet the definition above and are held for the purpose of meeting short-term cash commitments in operations are classified as cash equivalents.

(6) 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 Company measures the financial assets at fair value and recognises the transaction costs in profit or loss. The Company subsequently measures the financial assets at fair value, and recognises the gain or loss in profit or loss.
D. The Company recognises the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Company and the amount of the dividend can be measured reliably.

(7) Financial assets at amortised cost

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

(a) The objective of the Company'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 Company'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.

(8) 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 Company has made an irrevocable election at

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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 Company measures the financial assets at fair value plus transaction costs. The Company 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 Company and the amount of the dividend can be measured reliably.

(9) Accounts and notes receivable

A. Accounts and notes receivable entitle the Company 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.

(10) 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 costs 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.

(11) Impairment of financial assets

For financial assets at amortised cost, at each reporting date, the Company 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 Company recognises the impairment provision for lifetime ECLs.

(12) Derecognition of financial assets

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

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(13) Leasing arrangements (lessor)—operating leases

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

(14) Investments accounted for under equity method / subsidiaries and associates

A. Subsidiaries are all entities controlled by the Company. The Company controls an entity when the Company 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.

B. Unrealised gains or losses occurred on the transactions between the Company and subsidiaries have been eliminated. The accounting policies of the subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Company.

C. The Company’s share of its subsidiaries’ 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 Company’s share of losses in a subsidiary equals or exceeds its interest in the subsidiary, the Company continues to recognise losses proportionate to its ownership.

D. If changes in the Company’s shares in subsidiaries do not result in loss in control (transactions with non-controlling interest), transactions shall be considered as equity transactions, which are transactions between owners. Difference of adjustment of non-controlling interest and fair value of consideration paid or received is recognised in equity.

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

F. The Company’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 Company’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Company does not recognise further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.

G. 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 Company’s ownership percentage of the associate, the Company recognises the Company’s share of change in equity of the associate in ‘capital surplus’ in proportion to its ownership.

H. Unrealised gains on transactions between the Company and its associates are eliminated to the extent of the Company’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 Company.

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I. In the case that an associate issues new shares and the Company does not subscribe or acquire new shares proportionately, which results in a change in the Company'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 Company'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.

J. When the Company 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.

K. When the Company 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.

L. Pursuant to the Regulations Governing the Preparation of Financial Reports by Securities Issuers, profit (loss) of the current period and other comprehensive income in the parent company only financial statements shall equal to the amount attributable to owners of the parent in the financial statements prepared with basis for consolidation. Owners' equity in the parent company only financial statements shall equal to equity attributable to owners of the parent in the financial statements prepared with basis for consolidation.

(15) 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 Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

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

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

Assets	Useful lives
Buildings (including auxiliary equipment)	2	~	60 years
Machinery and equipment	3	~	15 years
Utility equipment	3	~	20 years
Transportation equipment	2	~	15 years
Office equipment	2	~	9 years
Other equipment	2	~	15 years

(16) 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 Company. 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 incentives receivable. The Company 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.

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(17) Investment property

An investment property is stated initially at its cost and measured subsequently using the cost model. Except for land, investment property is depreciated on a straight-line basis over its estimated useful life of 60 years.

(18) Intangible assets

A. Patents

Patents is stated at cost and amortised on a straight-line basis over its estimated useful life of 5 ~ 10 years.

B. Computer software

Computer software is stated at cost and amortised on a straight-line basis over its estimated useful life of 1 ~ 10 years.

(19) Impairment of non-financial assets

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

B. The recoverable amount of goodwill is 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 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.

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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 Company in current period or prior periods. The liability recognised in the balance sheet in respect of defined benefit pension plan is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of government bonds (at the balance sheet date) of a currency and term consistent with the currency and term of the employment benefit obligations.

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

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 Company 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.

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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 operates and generates 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 parent company only 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 Company and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is determined using tax rates and laws that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.

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

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

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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 Company manufactures and sells human pharmaceuticals, 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 Company has objective evidence that all criteria for acceptance have been satisfied.

(b) Goods are often sold with discounts and allowances based on the price spread given by the National Health Insurance. Revenue is recognised based on the price specified in the contract, net of the estimated sales discounts and allowances. Reversal of accounts receivable is recognised for expected sales discounts and allowances payable to customers in relation to sales made until the end of the reporting period. The terms of sales transactions are set individually with each clients and usually are made with cash payment in 2 months after billings, or to obtain cheques with a maturity of 4~6 months upon billings. As the time interval between the transfer of committed goods or service and the payment of customer does not exceed one year, the Company 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 Company 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 Company’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 Company recognises the incremental costs of obtaining a contract as an expense when incurred although the Company expects to recover those costs.

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(28) Government grants

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

CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY

The preparation of the parent company only financial statements requires management to make critical judgements in applying the Company’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 Company’s accounting policies

None.

(2) Critical accounting estimates and assumptions

A. Valuation of inventories

(a) As inventories are stated at the lower of cost and net realisable value, the Company 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 Company 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 $731,818.

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

(a) The fair value of unlisted stocks held by the Company 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 $90,249.

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6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

	December 31, 2025	December 31, 2024
Cash:
Revolving funds and petty cash	$ 9,389	$ 8,402
Checking deposits and demand deposits	228,389	287,985
	237,778	296,387
Cash equivalents:
Time deposits	107,167	4,478
	$ 344,945	$ 300,865

A. The Company 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 Company has no cash and cash equivalents pledged to others.

(2) Financial assets at amortised cost

Items	December 31, 2025	December 31, 2024
Current items:
Time deposits with maturity over three months	$ 137,401	$ -
Structured investments	100,000	-
Pledged time deposits	-	8,000
	$ 237,401	$ 8,000
Non-current items:
Corporate bonds	$ 90,741	$ -

A. The Company recognised interest income amounting to $1,508 and $121 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 Company was equivalent to its book value.

C. Details of the Company'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 Company's investments in certificates of deposits are financial institutions with high credit quality, so the Company 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
Emerging stocks	$ -	$ 12,820
Valuation adjustment	-	(11,737)
	$ -	$ 1,083
Non-current items:
Financial assets mandatorily measured at fair value through profit or loss
Unlisted stocks	$ 11,300	$ 11,300
Valuation adjustment	(3,560)	(3,657)
	$ 7,740	$ 7,643

A. The Company recognised net gain (loss) (listed as "Other gains and losses") of $2,679 and ($1,702) for the years ended December 31, 2025 and 2024, respectively.
B. As of December 31, 2025 and 2024, the Company 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	73,288	63,295
	368,458	249,737
Valuation adjustment	22,556	233,288
	$ 391,014	$ 483,025

A. The Company 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 Company was its book value.
B. The Company 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 Company held certain investments in equity instruments, and the investee company was liquidated in December 2025. As a result of the liquidation, the Company 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 Company recognised ($215,191) and $88,637 in other comprehensive (loss) income in relation to fair value change for the years ended December 31, 2025 and 2024, respectively.

E. The Company recognised dividend income of $90,090 and $11,455 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 Company 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	$ 87,177	$ 91,687
Less: Allowance for uncollectible accounts	( 90)	( 90)
	$ 87,087	$ 91,597
Accounts receivable	$ 667,459	$ 631,065
Less: Allowance for uncollectible accounts	( 7,561)	( 8,777)
	$ 659,898	$ 622,288

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

	December 31, 2025	December 31, 2024
Notes receivable:
Within the credit period	$ 87,177	$ 91,687
Accounts receivable:
Within the credit period	$ 586,387	$ 528,074
Overdue up to 90 days	29,176	53,723
Overdue 91 to 180 days	21,709	49,244
Overdue 181 to 270 days	30,187	-
Overdue over 271 days	-	24
	$ 667,459	$ 631,065

The above ageing 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 $691,997.

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 Company's notes and accounts receivable were its book value.

D. As of December 31, 2025 and 2024, the Company 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	$ 47,229	($ 77)	$ 47,152
Raw materials	252,709	( 2,725)	249,984
Supplies	45,599	( 533)	45,066
Work in process	96,270	-	96,270
Finished goods	295,948	( 2,602)	293,346
	$ 737,755	($ 5,937)	$ 731,818
	December 31, 2024
	Cost	Allowance for valuation loss	Book value
Merchandise	$ 43,188	($ 20)	$ 43,168
Raw materials	233,962	( 3,519)	230,443
Supplies	44,868	( 712)	44,156
Work in process	65,329	( 906)	64,423
Finished goods	381,326	( 7,825)	373,501
	$ 768,673	($ 12,982)	$ 755,691

The cost of inventories recognised as expenses for the year:

	For the years ended December 31,
	2025	2024
Cost of goods sold	$ 1,737,415	$ 1,619,086
Loss on scrapped inventories	29,755	8,634
Reversal of allowance for inventory market price decline (Note)	( 7,045)	( 3,407)
Gain on physical inventory	( 961)	( 1,027)
	$ 1,759,164	$ 1,623,286

(Note) For the years ended December 31, 2025 and 2024, the Company 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	$ 3,132,078	$ 2,930,322
Acquisition of investments accounted for under equity method	47,632	55,928
Loss on remeasurement of investments (Note 1)	( 6)	-
Share of profit or loss of subsidiaries, associates and joint ventures accounted for under equity method	129,797	177,747
Earnings distribution of investments accounted for under equity method	( 136,916)	( 121,693)
Capital surplus—Changes in net equity of associates and joint ventures accounted for under equity method	878	76,170
Capital surplus—Overdue cash dividends payable of subsidiaries	54	22
Other equity interest—Financial statements translation differences of foreign operations	( 3,636)	11,941
Other equity interest—Unrealised gain or loss on valuation of financial assets	46	794
Retained earnings—Remeasurement of defined benefit plan	1,266	( 670)
Retained earnings—Adjustment for non-proportional subscription to subsidiaries’ new shares (Note 2)	( 1,298)	-
Reclassified to “Other non-current liabilities”	8,268	1,517
At December 31	$ 3,178,163	$ 3,132,078

(Note 1) 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 Company does not have the practical ability to direct the relevant activities, and therefore it was determined that the Company no longer has control over the subsidiary but retains significant influence. On June 30, 2025, the Company recognised a loss of $6 (listed as “Other gains and losses”) as a result of measuring at fair value for the subsidiary’s shares held by the Company.

(Note 2) 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.

	December 31, 2025	December 31, 2024
Subsidiaries	$ 2,785,255	$ 2,742,329
Associates	392,908	389,749
	$ 3,178,163	$ 3,132,078

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

	December 31, 2025	December 31, 2024
Standard Pharmaceutical Co., Ltd.	$ 161,985	$ 168,268
Chia Scheng International Co., Ltd.	18,552	16,473
Inforight Technology Co., Ltd.	5,775	6,787
Souriree Biotech & Pharm. Co., Ltd.	49,707	49,054
Multipower Enterprise Corp.	285,575	321,776
Advpharma Inc.	279,209	270,724
Syngen Biotech Co., Ltd.	1,082,780	1,023,861
Syn-Tech Chem. & Pharm. Co., Ltd.	846,231	845,711
Ho Yao Biopharm Co., Ltd.	45,827	33,269
We Can Medicines Co., Ltd.	302,640	324,130
Taiwan Biosim Co., Ltd.	80,199	65,619
Shanghai Standard Pharmaceuticals Co., Ltd.	6,679	1,222
Standard Chem. & Pharm. Vietnam Co., Ltd. (Note 1)	2,935	5,184
Standard Pharma Holding Co., Ltd. (Note 2)	5,570	-
Standard Union Medical (Thailand) Co., Ltd. (Note 3)	4,499	-
	$ 3,178,163	$ 3,132,078

Details of negative balance of investments accounted for under equity method (listed as “Other non-current liabilities”):

Standard Chem. & Pharm. Philippines, Inc. $ 9,785 $ 1,517

(Note 1) Established during the first quarter of 2024.
(Note 2) Established during the second quarter of 2025.
(Note 3) Purchased during the third quarter of 2025.

C. Information on the Company’s subsidiaries is provided in Note 4(3) of the Company’s 2025 consolidated financial statements.

D. Associate:

(a) The basic information of the associate that is material to the Company 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%

(b) The summarised financial information of the associate that is material to the Company is as follows:

i. Balance sheets

	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 the associate	( 25,284)	( 25,215)
Carrying amount of the associate	$ 302,640	$ 324,130

ii. Statements of comprehensive income

	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)

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

	For the years ended December 31,
	2025	2024
Net income	$ 8,939	$ 7,894
Total comprehensive income	$ 9,931	$ 7,894

(d) The fair value of the Company's associates with quoted market prices is as follows:

	December 31, 2025	December 31, 2024
We Can Medicines Co., Ltd.	$ 462,505	$ 519,646

E. Details of various equity transactions between the Company and its related parties for the years ended December 31, 2025 and 2024 are provided in Note 7, “RELATED PARTY TRANSACTIONS”.

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

~36~

(8) Property, plant and equipment

At January 1, 2025	Land	Buildings	Machinery	Utility equipment	Transportation equipment	Office equipment	Other equipment	Construction in process	Total
Cost	$ 321,069	$ 1,007,561	$ 834,893	$ 136,528	$ 20,132	$ 36,755	$ 356,851	$ 125,904	$ 2,839,693
Accumulated depreciation	-	( 624,241)	( 735,110)	( 125,515)	( 15,940)	( 26,579)	( 244,186)	-	( 1,771,571)
	$ 321,069	$ 383,320	$ 99,783	$ 11,013	$ 4,192	$ 10,176	$ 112,665	$ 125,904	$ 1,068,122
For the year ended December 31, 2025
At January 1	$ 321,069	$ 383,320	$ 99,783	$ 11,013	$ 4,192	$ 10,176	$ 112,665	$ 125,904	$ 1,068,122
Additions - cost	-	34,681	29,003	1,130	745	758	9,236	101,840	177,393
Transfers (Note)	-	116,842	51,175	336	112	501	27,927	( 10,572)	186,321
Depreciation	-	( 38,534)	( 46,582)	( 4,743)	( 1,399)	( 4,202)	( 26,280)	-	( 121,740)
Disposals - cost	-	( 2,501)	( 18,847)	-	( 678)	( 2,358)	( 2,739)	-	( 27,123)
- accumulated depreciation	-	2,501	18,847	-	678	2,358	2,739	-	27,123
At December 31	$ 321,069	$ 496,309	$ 133,379	$ 7,736	$ 3,650	$ 7,233	$ 123,548	$ 217,172	$ 1,310,096
At December 31, 2025
Cost	$ 321,069	$ 1,156,583	$ 896,224	$ 137,994	$ 20,311	$ 35,656	$ 391,275	$ 217,172	$ 3,176,284
Accumulated depreciation	-	( 660,274)	( 762,845)	( 130,258)	( 16,661)	( 28,423)	( 267,727)	-	( 1,866,188)
	$ 321,069	$ 496,309	$ 133,379	$ 7,736	$ 3,650	$ 7,233	$ 123,548	$ 217,172	$ 1,310,096

(Note) Transferred from "Prepayments for equipment".

At January 1, 2024	Land	Buildings	Machinery	Utility equipment	Transportation equipment	Office equipment	Other equipment	Construction in process	Total
Cost	$ 321,069	$ 971,536	$ 838,065	$ 136,668	$ 18,715	$ 38,547	$ 355,575	$ 6,336	$ 2,686,511
Accumulated depreciation	-	( 594,390)	( 704,735)	( 120,048)	( 15,200)	( 29,320)	( 228,200)	-	( 1,691,893)
	$ 321,069	$ 377,146	$ 133,330	$ 16,620	$ 3,515	$ 9,227	$ 127,375	$ 6,336	$ 994,618
For the year ended December 31, 2024
At January 1	$ 321,069	$ 377,146	$ 133,330	$ 16,620	$ 3,515	$ 9,227	$ 127,375	$ 6,336	$ 994,618
Additions - cost	-	14,786	13,559	430	226	3,637	4,973	131,341	168,952
Transfers (Note)	-	21,582	5,879	-	1,855	1,356	4,209	( 11,773)	23,108
Depreciation	-	( 30,194)	( 39,670)	( 6,037)	( 1,404)	( 4,044)	( 23,892)	-	( 105,241)
Disposals - cost	-	( 343)	( 22,610)	( 570)	( 664)	( 6,785)	( 7,906)	-	( 38,878)
- accumulated depreciation	-	343	9,295	570	664	6,785	7,906	-	25,563
At December 31	$ 321,069	$ 383,320	$ 99,783	$ 11,013	$ 4,192	$ 10,176	$ 112,665	$ 125,904	$ 1,068,122
At December 31, 2024
Cost	$ 321,069	$ 1,007,561	$ 834,893	$ 136,528	$ 20,132	$ 36,755	$ 356,851	$ 125,904	$ 2,839,693
Accumulated depreciation	-	( 624,241)	( 735,110)	( 125,515)	( 15,940)	( 26,579)	( 244,186)	-	( 1,771,571)
	$ 321,069	$ 383,320	$ 99,783	$ 11,013	$ 4,192	$ 10,176	$ 112,665	$ 125,904	$ 1,068,122

(Note) Transferred from "Prepayments for equipment".

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

	December 31, 2025	December 31, 2024
Buildings	$ -	$ 78

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. As of December 31, 2025 and 2024, the Company has no property, plant and equipment pledged to others.

(9) Leasing arrangements—lessee

A. The Company leases various assets including land, buildings and transportation equipment. Rental contracts are typically made for periods of 2~11 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	$ 1,489	$ 2,281
Buildings	2,571	5,085
Transportation equipment	2,822	1,318
	$ 6,882	$ 8,684
	For the years ended December 31,
	2025	2024
	Depreciation	Depreciation
Land	$ 1,006	$ 1,006
Buildings	4,048	4,154
Transportation equipment	1,428	766
	$ 6,482	$ 5,926

C. The additions to right-of-use assets were $4,680 and $1,634 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	$ 123	$ 140
Expense on short-term lease contract	1,263	3,023
Expense on leases of low-value assets	107	35

E. The Company's total cash outflow for leases were $8,010 and $9,204 for the years ended December 31, 2025 and 2024, respectively.

(10) Investment property, net

	Land	Buildings	Total
At January 1, 2025
Cost	$ 59,483	$ 8,731	$ 68,214
Accumulated depreciation	-	( 5,656)	( 5,656)
	$ 59,483	$ 3,075	$ 62,558
For the year ended December 31, 2025
At January 1	$ 59,483	$ 3,075	$ 62,558
Depreciation	-	( 215)	( 215)
At December 31	$ 59,483	$ 2,860	$ 62,343
At December 31, 2025
Cost	$ 59,483	$ 8,731	$ 68,214
Accumulated depreciation	-	( 5,871)	( 5,871)
	$ 59,483	$ 2,860	$ 62,343
	Land	Buildings	Total
At January 1, 2024
Cost	$ 59,483	$ 8,731	$ 68,214
Accumulated depreciation	-	( 5,441)	( 5,441)
	$ 59,483	$ 3,290	$ 62,773
For the year ended December 31, 2024
At January 1	$ 59,483	$ 3,290	$ 62,773
Depreciation	-	( 215)	( 215)
At December 31	$ 59,483	$ 3,075	$ 62,558
At December 31, 2024
Cost	$ 59,483	$ 8,731	$ 68,214
Accumulated depreciation	-	( 5,656)	( 5,656)
	$ 59,483	$ 3,075	$ 62,558

A. Rental income from investment property (listed as “Other income”) and direct operating expenses arising from investment property are as follows:

	For the years ended December 31,
	2025	2024
Rental income from investment property	$ 5,343	$ 5,554
Direct operating expenses arising from investment property with rental income	$ 215	$ 215

B. The fair value of the investment property held by the Company as of December 31, 2025 and 2024 were $117,903 and $118,090, respectively, which was valued from the actual real estate price registered on the Department of Land Administration website. The valuation is categorised within Level 2 in the fair value hierarchy.

C. No borrowing costs were capitalised as part of investment property for the years ended December 31, 2025 and 2024.

D. As of December 31, 2025 and 2024, the Company has no investment property pledged to others. (11) Intangible assets

	Patents	Software	Total
At January 1, 2025
Cost	$ 11,202	$ 7,932	$ 19,134
Accumulated amortisation	( 11,202)	( 5,365)	( 16,567)
	$ -	$ 2,567	$ 2,567
For the year ended December 31, 2025
At January 1	$ -	$ 2,567	$ 2,567
Additions - acquired separately	-	1,159	1,159
Disposals - cost	-	( 5,254)	( 5,254)
- accumulated amortisation	-	5,254	5,254
Amortisation	-	( 1,374)	( 1,374)
At December 31	$ -	$ 2,352	$ 2,352
At December 31, 2025
Cost	$ 11,202	$ 3,837	$ 15,039
Accumulated amortisation	( 11,202)	( 1,485)	( 12,687)
	$ -	$ 2,352	$ 2,352

~42~

At January 1, 2024	Patents	Software	Total
Cost	$ 11,202	$ 34,195	$ 45,397
Accumulated amortisation	( 11,173)	( 30,064)	( 41,237)
	$ 29	$ 4,131	$ 4,160
For the year ended December 31, 2024
At January 1	$ 29	$ 4,131	$ 4,160
Additions - acquired separately	-	647	647
Disposals - cost	-	( 26,910)	( 26,910)
- accumulated amortisation	-	26,910	26,910
Amortisation	( 29)	( 2,211)	( 2,240)
At December 31	$ -	$ 2,567	$ 2,567
At December 31, 2024
Cost	$ 11,202	$ 7,932	$ 19,134
Accumulated amortisation	( 11,202)	( 5,365)	( 16,567)
	$ -	$ 2,567	$ 2,567

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	$ 261	$ 352
General and administrative expenses	832	1,663
Research and development expenses	281	225
	$ 1,374	$ 2,240

C. As of December 31, 2025 and 2024, the Company has no intangible assets pledged to others. (12) Short-term borrowings

	December 31, 2025	Interest rate range	Collateral
Unsecured bank borrowings	$ 530,000	0.795%~1.80%	None
	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 Company for the years ended December 31, 2025 and 2024, refer to Note 6(22), 'Finance costs'.

(13) Pensions

A. The Company has 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 contributes monthly an amount equal to 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 would assess the balance in the aforementioned labour pension reserve account by December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company will make contributions for the deficit by next March. Related information of pension paid under aforementioned plan is 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	($ 394,859)	($ 390,868)
Fair value of plan assets	339,390	314,236
Net defined benefit liabilities - non-current	($ 55,469)	($ 76,632)

(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	($ 390,868)	$ 314,236	($ 76,632)
Current service cost	( 1,369)	-	( 1,369)
Interest (expense) income	( 6,140)	4,986	( 1,154)
	( 398,377)	319,222	( 79,155)
Remeasurements:
Return on plan assets (excluding amounts included in interest income or expense)	-	22,291	22,291
Change in financial assumptions	( 6,787)	-	( 6,787)
Experience adjustments	( 2,818)	-	( 2,818)
	( 9,605)	22,291	12,686
Pension fund contribution	-	8,611	8,611
Paid pension	13,123	( 10,734)	2,389
At December 31	($ 394,859)	$ 339,390	($ 55,469)

	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	($ 431,132)	$ 292,075	($ 139,057)
Current service cost	( 2,358)	-	( 2,358)
Interest (expense) income	( 5,073)	3,460	( 1,613)
	( 438,563)	295,535	( 143,028)
Remeasurements:
Return on plan assets (excluding amounts included in interest income or expense)	-	26,687	26,687
Change in financial assumptions	12,047	-	12,047
Experience adjustments	57	-	57
	12,104	26,687	38,791
Pension fund contribution	-	20,547	20,547
Paid pension	35,591	( 28,533)	7,058
At December 31	($ 390,868)	$ 314,236	($ 76,632)

(c) The Bank of Taiwan was commissioned to manage the Fund of the Company's 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 has no right to participate in managing and operating that fund and hence the Company is 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	1.35%	1.60%
Future salary increases	2.90%	2.90%

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	($ 6,788)	$ 6,980	$ 6,646	($ 6,497)
December 31, 2024
Effect on present value of defined benefit obligation	($ 7,252)	$ 7,464	$ 7,129	($ 6,963)

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 Company for the year ending December 31, 2026 amount to $8,878.

(f) As of December 31, 2025, the weighted average duration of that retirement plan is 7 years. The analysis of timing of the future pension payment was as follows:

Within 1 year

$ 23,246

2~5 years

142,142

Over 5 years

268,817

$ 434,205

B. Effective July 1, 2005, the Company has 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 contributes 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 pension costs under the defined contribution pension plan of the Company for the years ended December 31, 2025 and 2024 were $\$30,323$ and $\$28,785$ , respectively.

(14) 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.

(15) Capital surplus

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

B. As the Company’s associate, We Can Medicines Co., Ltd., issued and converted employee stock options resulting in changes in net equity, the Company recognised the change in net equity proportionately to its ownership amounting to $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 Company 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 Company did not subscribe to the new shares in proportion to its ownership interest, resulting in a decrease in capital surplus by $40.

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 Company 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 Company reclassified dividends payable of $52 and $50, respectively, which had expired and not collected by the shareholders, to capital surplus. For the years ended December 31, 2025 and 2024, pursuant to the aforementioned letter, the subsidiary of the Company, Syngen Biotech Co., Ltd., reclassified

~46~

dividends payable of $114 and $45, respectively, which had expired and not collected by the shareholders, to capital surplus, resulting to an increase in the equity attributable to owners of parent by $54 and $22, respectively.

(16) Retained earnings

A. Within the limit, except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company’s paid-in-capital.

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

(a) Pay all taxes.
(b) Cover accumulated deficit.
(c) Appropriate 10% as legal reserve, until such legal reserve amounts to the total paid-in capital.
(d) Appropriate or reverse special reserve in accordance with regulations.
(e) At least 10% of the remainder and previous unappropriated retained earnings as stockholders’ bonus and cash dividends shall account for at least 20% of total dividends distributed. If the cash dividend is below $0.5 (in dollars) per share, the Company can distribute stock dividends instead of cash dividends upon resolution of the shareholders.

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

C. In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings. For the 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.

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

~47~

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.

(17) 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
- Company	( 3,798)	-	( 3,798)
- Subsidiaries	157	-	157
- Associates	5	-	5
Valuation adjustment
- Company	-	( 215,191)	( 215,191)
- Subsidiaries	-	46	46
Valuation adjustment transferred to retained earnings
- Company	-	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
- Company	11,065	-	11,065
- Subsidiaries	685	-	685
- Associates	191	-	191
Valuation adjustment
- Company	-	88,637	88,637
- Subsidiaries	-	794	794
Valuation adjustment transferred to retained earnings
- Company	-	( 6,418)	( 6,418)
At December 31	$ 4,489	$ 103,642	$ 108,131

(18) Operating revenue

A. The Company 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	$ 2,793,927	$ 416,003	$ 3,209,930
Revenue from sales of dietary supplement	123,314	23	123,337
Others	1,070	-	1,070
	$ 2,918,311	$ 416,026	$ 3,334,337
	For the year ended December 31, 2024
	Domestic	International	Total
Revenue from sales of medicine	$ 2,680,986	$ 411,702	$ 3,092,688
Revenue from sales of dietary supplement	126,940	-	126,940
Others	6,325	-	6,325
	$ 2,814,251	$ 411,702	$ 3,225,953

B. The Company 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

Revenue recognised that was included in the contract liability balance at the beginning of the years ended December 31, 2025 and 2024 were $36,182 and $29,970, respectively.

(19) Interest income

	For the years ended December 31,
	2025	2024
Interest income from financial assets at amortised cost	$ 1,508	$ 121
Interest income from bank deposits	3,680	11,231
	$ 5,188	$ 11,352

(20) Other income

	For the years ended December 31,
	2025	2024
Dividend income	$ 90,527	$ 11,603
Rental income	5,880	6,158
Service income	17,062	2,630
Royalty income	–	9,681
Technology transfer income	–	8,734
Research income	11,180	23,389
Government grants income	3,618	6,578
Other income	23,990	17,286
	$ 152,257	$ 86,059

(21) Other gains and losses

	For the years ended December 31,
	2025	2024
Net gain (loss) on financial assets at fair value through profit or loss	$ 2,679	($ 1,702)
Net gain (loss) on disposal of property, plant and equipment	5	( 2)
Loss on remeasurement of investments	( 6)	–
Net currency exchange (loss) gain	( 7,659)	40,701
Other losses	( 221)	( 217)
	($ 5,202)	$ 38,780

(22) Finance costs

	For the years ended December 31,
	2025	2024
Interest expense
Bank borrowings	$ 5,317	$ 5,616
Lease liabilities	123	140
	5,440	5,756
Less: Capitalisation of qualifying assets	( 3,583)	( 2,338)
	$ 1,857	$ 3,418

(23) Expenses by nature

	For the year ended December 31, 2025
	Recognised in operating costs	Recognised in operating expenses	Total
Employee benefit expenses	$416,523	$435,940	$852,463
Depreciation on property, plant and equipment	97,130	24,610	121,740
Depreciation on right-of-use assets	-	6,482	6,482
Amortisation	5,255	3,752	9,007
	$518,908	$470,784	$989,692
	For the year ended December 31, 2024
	Recognised in operating costs	Recognised in operating expenses	Total
Employee benefit expenses	$401,578	$448,727	$850,305
Depreciation on property, plant and equipment	81,652	23,589	105,241
Depreciation on right-of-use assets	-	5,926	5,926
Amortisation	4,895	3,848	8,743
	$488,125	$482,090	$970,215

(24) Employee benefit expenses

	For the year ended December 31, 2025
	Recognised in operating costs	Recognised in operating expenses	Total
Wages and salaries	$345,268	$363,385	$708,653
Labour and health insurance expenses	36,094	32,102	68,196
Pension costs	16,086	16,760	32,846
Directors’ remuneration	-	9,174	9,174
Other personnel expenses	19,075	14,519	33,594
	$416,523	$435,940	$852,463
	For the year ended December 31, 2024
	Recognised in operating costs	Recognised in operating expenses	Total
Wages and salaries	$332,710	$377,820	$710,530
Labour and health insurance expenses	34,162	30,726	64,888
Pension costs	15,888	16,868	32,756
Directors’ remuneration	-	8,997	8,997
Other personnel expenses	18,818	14,316	33,134
	$401,578	$448,727	$850,305

A. The average number of employees were 853 and 840, which included both 7 non-employee directors for the years ended December 31, 2025 and 2024, respectively.

B. The average employee benefit expense were $997 and $1,010, respectively, while average wages and salaries were $838 and $853 for the years ended December 31, 2025 and 2024, respectively. The average wages and salaries has decreased by 1.8% compared to prior year.

C. Directors' remuneration was reviewed by the Compensation Committee (the Committee) based on the degree of the directors' participation, the value contributed to the Company's operations, and the average level in the industry. Compensation for executive officers was reviewed by the Committee and resolved by the Board of Directors based on executive officers' job title, function, contribution, performance, and in consideration of the Company's future risk, etc. Employees' compensation is decided based on individual's performance, contribution to the Company, performance, the market value of the position, and in consideration of the Company's future operating risk.

D. In accordance with the Articles of Incorporation of the Company, a ratio of distributable profit of the current year (pre-tax profit before deducting employees' compensation and directors' remuneration), after covering accumulated losses, shall be distributed as employees' compensation and directors' remuneration. The ratio shall be 1% ~ 10% for employees' compensation, 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.

E. 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 were estimated and accrued based on the distributable net profit of current year calculated based on 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

~52~

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.

(25) 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	$ 159,504	$ 169,385
Tax on undistributed earnings	1,097	19,051
Over provision of prior year’s income tax	(32,866)	(5,737)
	127,735	182,699
Deferred tax:
Origination and reversal of temporary differences	(3,697)	(704)
Income tax expense	$ 124,038	$ 181,995

(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	$ 2,537	$ 7,758

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	$ 210,339	$ 212,499
Effect of amount not allowed to be recognised under regulations	(54,532)	(43,818)
Tax on undistributed earnings	1,097	19,051
Over provision of prior year’s income tax	(32,866)	(5,737)
Income tax expense	$ 124,038	$ 181,995

C. Amounts of deferred tax assets or liabilities as a result of temporary differences 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	$ 3,554	$ -	$ -	$ 3,554
Unrealised loss on inventories from market value decline	2,596	(1,409)	-	1,187
Unrealised exchange loss	-	69	-	69
Investment loss	49,708	3,754	-	53,462
Unrealised sales allowance	6,665	1,694	-	8,359
Unused compensated absences	5,773	376	-	6,149
Pensions	8,336	(1,695)	(2,537)	4,104
	$ 76,632	$ 2,789	($ 2,537)	$ 76,884
Deferred tax liabilities
Temporary differences:
Unrealised exchange gain	($ 908)	$ 908	$ -	$ -
Provision for land value incremental tax	(61,992)	-	-	(61,992)
	($ 62,900)	$ 908	$ -	($ 61,992)
	$ 13,732	$ 3,697	($ 2,537)	$ 14,892

~55~

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	$ 2,854	$ 700	$ -	$ 3,554
Unrealised loss on inventories from market value decline	3,278	( 682)	-	2,596
Unrealised exchange loss	509	( 509)	-	-
Investment loss	43,590	6,118	-	49,708
Unrealised sales allowance	6,355	310	-	6,665
Unused compensated absences	5,371	402	-	5,773
Pensions	20,821	( 4,727)	( 7,758)	8,336
	$ 82,778	$ 1,612	($ 7,758)	$ 76,632
Deferred tax liabilities
Temporary differences:
Unrealised exchange gain	$ -	($ 908)	$ -	($ 908)
Provision for land value incremental tax	( 61,992)	-	-	( 61,992)
	($ 61,992)	($ 908)	$ -	($ 62,900)
	$ 20,786	$ 704	($ 7,758)	$ 13,732

D. The Company’s income tax returns through 2023 have been assessed and approved by the Tax Authority. The Company does not have any administrative remedy as of February 24, 2026.

(26) 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	$ 927,659	178,696	$ 5.19
Diluted earnings per share
Profit attributable to ordinary shareholders	$ 927,659	178,696
Assumed conversion of all dilutive potential ordinary shares
Employees’ compensation	-	218
Profit attributable to ordinary shareholders 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	$ 880,501	178,696	$ 4.93
Diluted earnings per share
Profit attributable to ordinary shareholders	$ 880,501	178,696
Assumed conversion of all dilutive potential ordinary shares
Employees’ compensation	-	204
Profit attributable to ordinary shareholders plus assumed conversion of all dilutive potential ordinary shares	$ 880,501	178,900	$ 4.92

~56~

(27) 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	$ 177,393	$ 168,952
Add: Beginning balance of notes payable	10,373	1,617
Beginning balance of payable on equipment (listed as “Other payables”)	3,970	5,548
Less: Ending balance of notes payable	( 5,762)	( 10,373)
Ending balance of payable on equipment (listed as “Other payables”)	( 25,387)	( 3,970)
Capitalised interest	( 3,583)	( 2,338)
Cash paid for acquisition of property, plant and equipment	$ 157,004	$ 159,436

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	$ 1,529	$ -
(2) Prepayments for equipment transferred to property, plant and equipment	$ 186,321	$ 23,108
(3) Negative balance of investments accounted for under equity method transferred to other non-current liabilities	$ 8,268	$ 1,517

(28) Changes in liabilities from financing activities

	Short-term borrowings	Lease liabilities	Guarantee deposits received	Total
At January 1, 2025	$ 110,000	$ 8,841	$ 8,535	$ 127,376
Changes in cash flow from financing activities	420,000	( 6,517)	427	413,910
Changes in other non-cash items	-	4,680	-	4,680
At December 31, 2025	$ 530,000	$ 7,004	$ 8,962	$ 545,966

~58~

	Short-term borrowings	Lease liabilities	Guarantee deposits received	Total
At January 1, 2024	$ 460,000	$ 13,213	$ 8,733	$ 481,946
Changes in cash flow from financing activities	( 350,000 )	( 6,006 )	( 198 )	( 356,204 )
Changes in other non-cash items	–	1,634	–	1,634
At December 31, 2024	$ 110,000	$ 8,841	$ 8,535	$ 127,376

7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and relationship

Names of related parties	Relationship with the Company
Chia Scheng International Co., Ltd. (Chia Scheng)	Subsidiary
Standard Chem. & Pharm. Philippines, Inc.	Subsidiary
Inforight Technology Co., Ltd. (Inforight)	Subsidiary
Souriree Biotech & Pharm. Co., Ltd. (Souriree)	Subsidiary
Multipower Enterprise Corp. (Multipower)	Subsidiary
Advpharma Inc. (Adv)	Subsidiary
Syngen Biotech Co., Ltd. (Syngen)	Subsidiary
Syn-Tech Chem. & Pharm. Co., Ltd. (Syn-Tech)	Subsidiary
Ho Yao Biopharm Co., Ltd.(Ho Yao)	Subsidiary
Shanghai Standard Pharmaceuticals Co., Ltd. (Shanghai Standard)	Subsidiary
Jiangsu Standard Biotech Pharmaceutical Co., Ltd. (Jiangsu Standard)	Subsidiary
Standard Chem. & Pharm. Vietnam Co., Ltd.	Subsidiary
We Can Medicines Co., Ltd. (We Can)	Associate
Taiwan Biosim Co., Ltd. (Biosim)	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 Company. However, the Company lost its substantial control over the entity since June 30, 2025. Therefore, the entity’s relationship with the Company changed to associate since then.

(2) Significant related party transactions

A. Sales of goods

	For the years ended December 31,
	2025	2024
Subsidiaries	$ 12,445	$ 12,440
Associates	14,123	14,660
Other related parties	20,736	20,214
	$ 47,304	$ 47,314

Prices of goods sold to related parties are determined each time when delivering goods. The payment term of the subsidiaries is to obtain cheques due in 3~4 months. For other related parties, 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
Subsidiaries	$ 200,820	$ 185,350
Associates	12,781	9,852
Other related parties	4,577	8,473
	$ 218,178	$ 203,675

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 billings.

C. Property transactions

(a) Acquisition of property, plant and equipment (including prepayments for equipment):

	For the years ended December 31,
	2025	2024
Subsidiaries	$ 2,435	$ 489

(b) Disposal of property, plant and equipment:

	For the year ended December 31, 2025		For the year ended December 31, 2024
	Proceeds	Gain on disposal	Proceeds	Gain on disposal
Subsidiaries	$ 5	$ 5	$ 64	$ 64

D. Equity transactions

(a) In February 2025 and May 2024, the Company's subsidiary, Shanghai Standard Pharmaceuticals Co., Ltd., conducted cash capital increases in which the Company subscribed all the shares amounting to $6,578 and $1,714, respectively. The subscriptions had been fully settled.

(b) In May 2025, the Company's subsidiary, Ho Yao Biopharm Co., Ltd., conducted a cash capital increase in which the Company subscribed all the shares amounting to $26,700. The subscription had been fully settled.

(c) In May 2025, in order to expand the business of the Group, the Company invested 60% in establishing a subsidiary, Standard Pharma Holding Co., Ltd., amounting to $1,399. The subscription had been fully settled. Refer to Note 6(7), 'Investments accounted for under equity method' for the information related to the Company losing its control due to non-proportional subscription to the subsidiary's shares.

(d) In July 2025, the Company'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.

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

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

(g) In March 2024, in order to expand the business of the Group, the Company established a wholly-owned subsidiary, Standard Chem. & Pharm. Vietnam Co., Ltd., amounting to $6,414. The subscription had been fully settled.

E. Other expenses

	For the years ended December 31,
	2025	2024
Advertisement expenses:
Subsidiaries	$ 4,784	$ 1,561
Associates	66	72
Other related parties	19	-
	$ 4,869	$ 1,633
Research and development expenses:
Subsidiaries	$ 14,449	$ 22,189
Professional service fees:
Subsidiaries	$ 10,781	$ 4,508
Miscellaneous expenses:
Subsidiaries	$ 3,004	$ 2,487
Associates	116	70
Other related parties	-	6
	$ 3,120	$ 2,563

F. Rental income

	Leased assets	Rent collection	For the years ended December 31,
			2025	2024
Subsidiaries	Land, Buildings and other equipments	Monthly	$ 5,432	$ 5,743

G. Other income

	For the years ended December 31,
	2025	2024
Syngen	$ 10,298	$ 9,368
Subsidiaries	5,620	5,053
Associates	7,226	1,147
Other related parties	1,319	1,182
	$ 24,463	$ 16,750

H. Ending balance of goods sold

	December 31, 2025	December 31, 2024
Receivables from related parties:
Subsidiaries	$ 6,912	$ 7,062
Associates	3,653	3,126
Other related parties	5,901	7,226
	$ 16,466	$ 17,414

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.

I. Other receivables

	December 31, 2025	December 31, 2024
Subsidiaries	$ 46	$ 66
Associates	20	38
	$ 66	$ 104

J. Prepayments:

	December 31, 2025	December 31, 2024
Standard Chem. & Pharm. Philippines, Inc.	$ 28,218	$ 16,137

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K. Ending balance of goods purchased

	December 31, 2025	December 31, 2024
Payables to related parties:
Subsidiaries	$ 46,298	$ 43,236
Associates	1,075	1,523
Other related parties	1,767	2,940
	$ 49,140	$ 47,699

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

L. Other payables

	December 31, 2025	December 31, 2024
Subsidiaries	$ 368	$ 600
Associates	199	-
Other related parties	19	-
	$ 586	$ 600

M. Lease transactions—lessee

(a) The Company leases land from Fan Dao Nan. Rental contracts are made for the period from October 1, 2016 to September 30, 2027. Rents are paid quarterly.
(b) As of December 31, 2025 and 2024, the carrying amount of right-of-use assets were $1,049 and $1,649, respectively.
(c) As of December 31, 2025 and 2024, the carrying amount of lease liability were $1,093 and $1,707, respectively. The Company recognised interest expense amounting to $15 and $23 (listed as 'Finance costs') for the years ended December 31, 2025 and 2024, respectively.
(d) Rent expense

	For the years ended December 31,
	2025	2024
Other related parties	$ 441	$ 432
Subsidiaries	-	6
	$ 441	$ 438

(3) Key management compensation

	For the years ended December 31,
	2025	2024
Salaries and other short-term employee benefits	$ 20,481	$ 18,943
Post-employment benefits	326	326
	$ 20,807	$ 19,269

~63~

8. PLEDGED ASSETS

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

Pledged asset	Book value		Purposes
	December 31, 2025	December 31, 2024
Time deposits (Note)	$ -	$ 8,000	Performance guarantees

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

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT COMMITMENTS

As of December 31, 2025 and 2024, the balances for contracts that the Company entered into for the purchase of property, plant and equipment, but not yet due were $222,263 and $311,522, respectively.

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENT AFTER THE BALANCE SHEET DATE

None.

12. OTHERS

(1) Capital management

The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return 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	$ 7,740	$ 8,726
Financial assets at fair value through other comprehensive income
Designation of equity instruments	$ 391,014	$ 483,025
Financial assets at amortised cost
Cash and cash equivalents	$ 344,945	$ 300,865
Financial assets at amortised cost	328,142	8,000
Notes receivable	87,087	91,597
Accounts receivable	659,898	622,288
Other receivables	3,446	13,573
Guarantee deposits paid	40,648	22,249
	$ 1,464,166	$ 1,058,572
Financial liabilities
Financial liabilities at amortised cost
Short-term borrowings	$ 530,000	$ 110,000
Notes payable	20,874	153,311
Accounts payable	257,767	131,634
Other payables	279,214	262,150
Guarantee deposits received	8,962	8,535
	$ 1,096,817	$ 665,630
Lease liabilities	$ 7,004	$ 8,841

B. Risk management policies

(a) The Company’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 Company, derivative financial instruments may be used to hedge certain risk.

(b) Risk management is carried out by a central treasury department (Company treasury) under policies approved by the Board of Directors. Company treasury identifies, evaluates and hedges financial risks. 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.

~64~

C. Significant financial risks and degrees of financial risks

(a) Market risk

Foreign exchange risk

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

ii. The Company 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 Company does not expect significant interest rate risk.

iii. The Company 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 Company does not hedge the investments.

iv. The Company's businesses involve some non-functional currency operations (the Company's functional currency: NTD). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

~65~

December 31, 2025

| Foreign currency: | Foreign currency amount
(In thousands) | | |
| --- | --- | --- | --- |
| | Exchange rate | Book value | |
| (Foreign currency: | | | |
| functional currency) | | | |
| Financial assets | | | |
| Monetary items | | | |
| USD: NTD | $ 12,540 | 31.43 | $ 394,132 |
| JPY: NTD | 607,220 | 0.2008 | 121,930 |
| EUR: NTD | 350 | 36.9 | 12,915 |
| RMB: NTD | 1,781 | 4.496 | 8,007 |
| Investments accounted | | | |
| for under equity method | | | |
| USD: NTD | 5,154 | 31.43 | 161,985 |
| RMB: NTD | 1,486 | 4.496 | 6,679 |
| VND: NTD | 2,486,921 | 0.00118 | 2,935 |
| THB: NTD | 9,131 | 1.0019 | 9,149 |
| Financial liabilities | | | |
| Monetary items | | | |
| USD: NTD | 274 | 31.43 | 8,612 |
| Other non-current liabilities | | | |
| PHP: NTD | 18,341 | 0.5335 | 9,785 |

~66~

~67~

	December 31, 2024
	Foreign currency amount (In thousands)	Exchange rate	Book value
(Foreign currency: functional currency)
Financial assets
Monetary items
USD: NTD	$ 7,370	32.79	$ 241,662
JPY: NTD	301,291	0.2099	63,241
RMB: NTD	1,807	4.478	8,092
Investments accounted for under equity method
USD: NTD	5,138	32.79	168,268
RMB: NTD	273	4.478	1,222
VND: NTD	4,081,619	0.00127	5,184
Financial liabilities
Monetary items
USD: NTD	210	32.79	6,886
Other non-current liabilities
PHP: NTD	2,675	0.5671	1,517

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 Company's net income for the years ended December 31, 2025 and 2024 would have increased/decreased by $4,227 and $2,449, respectively.

v. Total net exchange (loss) gain, including realised and unrealised, arising from significant foreign exchange variation on the monetary items held by the Company for the years ended December 31, 2025 and 2024 amounted to ($7,659) and $40,701, respectively.

Price risk

i. The Company'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 Company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Company.

ii. The Company's investments in equity securities comprise shares 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 $113 and $241, 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 $3,685 and $2,497, 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 Company’s main interest rate risk arises from short-term borrowings with variable rates, which expose the Company to cash flow interest rate risk. During the years ended December 31, 2025 and 2024, the Company’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 $15 and $27 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 Company 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 Company manages its credit risk taking into consideration the entire company’s concern. According to the Company’s credit policy, the Company 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 Company will continue executing the recourse procedures to secure their rights.

iv. The Company classifies customer’s notes and accounts receivable in accordance with credit rating of customer. The Company applies the modified approach using provision matrix to estimate expected credit loss under the provision matrix basis. The Company 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 Company applying the modified approach to provide loss allowance for notes and accounts receivable are as follows:

~68~

~69~

For the year ended December 31, 2025

	Notes receivable	Accounts receivable	Total
Beginning balance	$ 90	$ 8,777	$ 8,867
Expected credit loss	–	313	313
Write-offs	–	( 1,529)	( 1,529)
Ending balance	$ 90	$ 7,561	$ 7,651

For the year ended December 31, 2024

	Notes receivable	Accounts receivable	Total
Beginning balance	$ –	$ 4,537	$ 4,537
Expected credit loss	90	4,240	4,330
Ending balance	$ 90	$ 8,777	$ 8,867

v. The counterparties of the financial assets at amortised cost held by the Company 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 by Company treasury. Company treasury monitors rolling forecasts of the Company’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 Company does not breach borrowing limits or covenants on any of its borrowing facilities.

ii. Surplus cash held by the Company over and above balance required for working capital management are transferred to the Company treasury. Company 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 Company has the following undrawn borrowing facilities:

	December 31, 2025	December 31, 2024
Floating rate:
Expiring within one year	$ 1,220,000	$ 1,869,530

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

December 31, 2025	Within 1 year	Between 1 and 2 years	Between 2 and 5 years	Over 5 years
Short-term borrowings	$ 531,450	$ -	$ -	$ -
Notes payable	20,874	-	-	-
Accounts payable	257,767	-	-	-
Other payables	279,214	-	-	-
Lease liabilities	5,121	1,619	341	-
Guarantee deposits received	8,962	-	-	-
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	153,311	-	-	-
Accounts payable	131,634	-	-	-
Other payables	262,150	-	-	-
Lease liabilities	5,106	3,218	617	-
Guarantee deposits received	8,535	-	-	-

v. For non-derivative financial liabilities, the Company 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 Company's investment in listed stocks is included.

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

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

B. The carrying amounts of the Company'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, 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	$ -	$ -	$ 7,740	$ 7,740
Financial assets at fair value through other comprehensive income
Equity securities	308,505	-	82,509	391,014
	$ 308,505	$ -	$ 90,249	$ 398,754
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	$ -	$ -	$ 8,726	$ 8,726
Financial assets at fair value through other comprehensive income
Equity securities	390,027	-	92,998	483,025
	$ 390,027	$ -	$ 101,724	$ 491,751

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

i. The instruments that the Company used market quoted prices as their fair values (that is, Level 1) are listed below by characteristics:

Market quoted price	Listed stocks
	Closing price

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 parent company only balance sheet date.

~71~

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 Company's financial and non-financial instruments. Therefore, the estimated value derived using valuation model is adjusted accordingly with additional inputs, for example, model risk or liquidity risk and etc. In accordance with the Company's management policies and relevant control procedures 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 in the parent company only balance sheet. The inputs and pricing information used during valuation are carefully assessed and adjusted based on current market conditions.

D. There were 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	$ 101,724	$ 112,434
Purchase	45,000	-
Disposal	( 47,828)	( 783)
Recognised in profit or loss	11,834	( 2,095)
Recognised in other comprehensive loss	( 20,481)	( 7,832)
At December 31	$ 90,249	$ 101,724

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.

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.

~72~

	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	$ 45,189	Market comparable companies	Discount for lack of marketability	30%	The higher the discount for lack of marketability, the lower the fair value
Unlisted stocks	37,320	Discounted cash flow	Weighted-average cost of capital	8,32%	The higher the weighted-average cost of capital, the lower the fair value
Unlisted stocks	7,740	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	$ 89,631	Market comparable companies	Discount for lack of marketability	30%	The higher the discount for lack of marketability, the lower the fair value
Unlisted stocks	12,093	Net asset value	Not applicable	-	Not applicable

I. The Company 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%	$ -	$ -	$ 1,937	($ 1,937)
Equity instrument	Weighted-average cost of capital	± 0.25% ~ ± 0.5%	$ -	$ -	$ 7,935	($ 5,130)
			December 31, 2024
			Recognised in profit or loss		Recognised in other comprehensive income
	Input	Change	Favourable change	Unfavourable change	Favourable change	Unfavourable change
Financial assets
Equity instrument	Discount for lack of marketability	± 3%	$ 46	($ 46)	$ 3,795	($ 3,795)

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 security 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 periods: Refer to table 3.

(2) Information on investees

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

(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

Not applicable.

~75~

STANDARD CHEM. & PHARM. CO., LTD.

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.
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:
UPAMC James Bond Money Market Fund	—	1	569,746	10,063	—	10,063	—
Syngen Biotech Co., Ltd.	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

Table 2 page 1

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

Table 3 page 1

STANDARD CHEM. & PHARM. CO., LTD.

Information on investees

For the year ended December 31, 2025

Expressed in thousands of NTD

Table 4

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.

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

STANDARD CHEM. & PHARM. CO., LTD.
STATEMENT OF CASH AND CASH EQUIVALENTS
DECEMBER 31, 2025
(Expressed in thousands of New Taiwan dollars)

Item	Description	Amount
Cash:
Revolving funds and petty cash		$ 9,389
Demand deposits-New Taiwan Dollar		149,860
-Foreign currency	Including JPY 62,426 thousand @0.2008	12,535
	USD 1,939 thousand @31.43	60,951
	CNY 739 thousand @4.496	3,323
	EUR 47 thousand @36.9	1,720
Cash equivalents:
Time deposits-Foreign currency	Including JPY 120,000 thousand @0.2008
due on 2026/3/2~2026/3/30,
interest rate at 0.54%~0.69%	24,096
	CNY 1,000 thousand @4.496
due on 2026/1/11~2026/3/11,
interest rate at 0.4%~0.5%	4,496
	USD 2,500 thousand @31.43
due on 2026/1/2~2026/1/12,
interest rate at 3.97%~4.03%	78,575
		$ 344,945

~76~

~77~

STANDARD CHEM. & PHARM. CO., LTD.

STATEMENT OF FINANCIAL ASSETS AT AMORTISED COST - CURRENT

DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Item	Description	Amount
Time deposits with maturity
over three months -
Foreign currency	JPY 422,500 thousand @0.2008 due on 2026/1/3～2026/6/1, interest rate at 0.15%～0.45%
USD 1,320 thousand @31.43 due on 2026/9/29, interest rate at 3.96%
EUR 300 thousand @36.9 due on 2026/4/23, interest rate at 0.7%	$ 84,838
41,493
11,070
137,401	—
—
—
—
Structured investments	Principal-guaranteed fixed income; due on 2026/2/26; annualized rate of return at 1.80%	100,000
$ 237,401	—

~78~

STANDARD CHEM. & PHARM. CO., LTD.

STATEMENT OF NOTES RECEIVABLE, NET

DECEMBER 31, 2025
(Expressed in thousands of New Taiwan dollars)

Client Name	Description	Amount	Note
Non-related parties:
Others (individually less than 5%)	Notes receivable	$ 83,322	—
Less: Allowance for uncollectible accounts		( 90 )
		83,232
Related parties:
Sun You Biotech Pharm Co., Ltd.	Notes receivable	2,533	—
Syngen Biotech Co., Ltd.	Notes receivable	290	—
Souriree Biotech & Pharm. Co., Ltd.	Notes receivable	915	—
Others (individually less than 5%)	Notes receivable	117	—
		3,855
		$ 87,087

~79~

STANDARD CHEM. & PHARM. CO., LTD.

STATEMENT OF ACCOUNTS RECEIVABLE, NET

DECEMBER 31, 2025
(Expressed in thousands of New Taiwan dollars)

Client Name	Description	Amount	Note
Non-related parties:
Company A	Accounts receivable	$ 157,935	—
Others (individually less than 5%)	Accounts receivable	496,913	—
		654,848
Less: Allowance for uncollectible accounts		( 7,561 )
		647,287
Related parties:
Sun You Biotech Pharm Co., Ltd.	Accounts receivable	3,368	—
Standard Chem. & Pharm.	Accounts receivable	5,444	—
Philippines, Inc.
We Can Medicines Co., Ltd.	Accounts receivable	3,653	—
Others (individually less than 5%)	Accounts receivable	146	—
		12,611
		$ 659,898

~80~

STANDARD CHEM. & PHARM. CO., LTD.

STATEMENT OF INVENTORIES

DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Item	Description	Amount		Note
		Cost	Net Realisable Value
Merchandise	—	$ 47,229	$ 86,169	(Note)
Raw materials	—	252,709	243,216	(Note)
Supplies	—	45,599	44,910	(Note)
Work in progress	—	96,270	96,270	(Note)
Finished goods	—	295,948	635,240	(Note)
		737,755	$ 1,105,805
Less: Allowance for inventory valuation losses		( 5,937)
		$ 731,818

(Note) Refer to Note 4(10) for the method to determine the net realisable value.

~81~

STANDARD CHEM. & PHARM. CO., LTD.

STATEMENT OF CHANGES IN FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME - NON-CURRENT

FOR THE YEAR ENDED DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Name	Beginning Balance		Additions		Decrease		Valuation Adjustments		Ending Balance
	Shares (in thousands)	Fair Value	Shares (in thousands)	Amount	Shares (in thousands)	Amount	Amount	Shares (in thousands)	Fair Value	Collateral	Note
Listed stocks:
Rossmax International Ltd.	3,548	$ 62,444	550	$ 8,301	-	$ -	($ 6,816)	4,098	$ 63,929	None	-
Easywell Biomedicals, Inc.	5,095	327,583	1,700	99,212	-	-	( 183,548)	6,795	243,247	None	-
Genovate Biotechnology Co., Ltd.	-	-	48	1,216	-	-	113	48	1,329	None	-
Unlisted stocks:
Rock BioMedical, Inc.	-		1,500	45,000	-	-	( 7,680)	1,500	37,320	None	-
HER-SING CO., LTD.	3,055	44,359	-	-	( 3,055)	( 30,550)	( 13,809)	-	-	-	-
Sun You Biotech Pharm Co., Ltd.	3,378	42,597	-	-	-	-	( 2,365)	3,378	40,232	None	-
Green Management International Co., Ltd.	110	1,592	-	-	-	-	36	110	1,628	None	-
Kenda Pharmaceutical Co., Ltd.	-	-	629	3,329	-	-	-	629	3,329	None	(Note)
Kenda Pharmaceutical Co., Ltd. (Samoa)	5,000	4,450	-	-	( 5,000)	( 7,787)	3,337	-	-	-	(Note)
		$ 483,025		$ 157,058		($ 38,337)	($ 210,732)		$ 391,014

(Note)As Kenda Pharmaceutical Co., Ltd. (Samoa) was liquidated, the Company was allocated residual properties in the form of shares of Kenda Pharmaceutical Co., Ltd.. Refer to Note 6(4), 'Financial assets at fair value through other comprehensive income - non-current' for details.

~82~

STANDARD CHEM. & PHARM. CO., LTD.

STATEMENT OF CHANGES IN FINANCIAL ASSETS AT AMORTISED COST - NON-CURRENT

FOR THE YEAR ENDED DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Name	Beginning Balance		Addition		Decrease		Ending Balance		Accumulated Impairment	Collateral	Note
	Shares/Units (in thousands)	Carrying Amount	Shares/Units (in thousands)	Amount	Shares/Units (in thousands)	Amount	Shares/Units (in thousands)	Carrying Amount
Corporate bonds	-	$ -	-	$ 90,741	-	$ -	-	$ 90,741	$ -	-	(Note)

(Note) Due on 2035/12/30, interest rate at 3.70%.

STANDARD CHEM. & PHARM. CO., LTD.
STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR UNDER EQUITY METHOD
FOR THE YEAR ENDED DECEMBER 31, 2025
(Expressed in thousands of New Taiwan dollars)

Name	Beginning Balance		Additions		Decrease		Ending Balance		Market Value or Net Assets Value
	Shares (in thousands)	Amount	Shares (in thousands)	Amount	Shares (in thousands)	Amount	Shares (in thousands)	Percentage of Ownership	Amount	Unit Price	Total Amount	Collateral	Note
Standard Pharmaceutical Co., Ltd.	13,000	$ 168,268	-	$ -	-	($ 6,283)	13,000	100%	$ 161,985	$ 12.46	$ 161,985	None	-
Chia Scheng International Co., Ltd.	14,553	16,473	-	3,791	-	( 1,712)	14,553	100%	18,552	1.28	18,681	None	-
Standard Chem. & Pharm. Philippines, Inc.	392	( 1,517)	-	263	-	( 8,531)	392	100%	( 9,785)	( 24.96)	( 9,785)	None	-
Inforight Technology Co., Ltd.	500	6,787	-	122	-	( 1,134)	500	100%	5,775	11.55	5,775	None	-
Souriree Biotech & Pharm. Co., Ltd.	5,674	49,054	-	4,512	-	( 3,859)	5,674	93.58%	49,707	13.56	76,942	None	-
Multipower Enterprise Corp.	19,841	321,776	-	-	-	( 36,201)	19,841	90.72%	285,575	10.99	218,141	None	-
Advpharma Inc.	53,227	270,724	-	8,485	-	-	53,227	88.71%	279,209	5.37	285,828	None	-
Syngen Biotech Co., Ltd.	12,651	1,023,861	-	122,175	-	( 63,256)	12,651	46.68%	1,082,780	116.00	1,467,533	None	-
Syn-Tech Chem. & Pharm. Co., Ltd.	12,676	845,711	-	67,703	-	( 67,183)	12,676	28.43%	846,231	73.80	935,486	None	-
Ho Yao Biopharm Co., Ltd.	3,680	33,269	2,670	26,700	-	( 14,142)	6,350	90.71%	45,827	5.38	34,148	None	-
We Can Medicines Co., Ltd.	13,445	324,130	-	509	-	( 21,999)	13,445	29.82%	302,640	34.40	462,505	None	-
Taiwan Biosim Co., Ltd.	7,485	65,619	-	14,580	-	-	7,485	49.90%	80,199	10.71	80,199	None	-
Shanghai Standard Pharmaceuticals Co., Ltd.	-	1,222	-	6,578	-	( 1,121)	-	100%	6,679	-	6,679	None	-
Standard Chem. & Pharm. Vietnam Co., Ltd.	-	5,184	-	-	-	( 2,249)	-	100%	2,935	-	2,935	None	-
Standard Pharma Holding Co.,Ltd.	-	-	447	9,190	-	( 3,620)	447	49.50%	5,570	12.46	5,570	None	-
Standard Union Medical (Thailand) Co., Ltd.	-	-	670	6,525	-	( 2,026)	670	20.00%	4,499	5.34	3,579	None	-
		$3,130,561							$3,168,378
Transferred to other non-current liabilities		1,517					Transferred to other non-current liabilities		9,785
		$3,132,078							$3,178,163

~84~

STANDARD CHEM. & PHARM. CO., LTD.
STATEMENT OF CHANGES IN COST OF PROPERTY, PLANT AND EQUIPMENT
FOR THE YEAR ENDED DECEMBER 31, 2025
(Expressed in thousands of New Taiwan dollars)

Refer to Note 6(8) for the information related to property, plant and equipment.

~85~

STANDARD CHEM. & PHARM. CO., LTD.
STATEMENT OF CHANGES IN ACCUMULATED DEPRECIATION OF PROPERTY, PLANT AND
EQUIPMENT
FOR THE YEAR ENDED DECEMBER 31, 2025
(Expressed in thousands of New Taiwan dollars)

Refer to Note 6(8) for the information related to property, plant and equipment and
Note 4(15) for the method to determine depreciation and useful lives for assets.

~86~

STANDARD CHEM. & PHARM. CO., LTD.
STATEMENT OF CHANGES IN DEFERRED TAX ASSETS
FOR THE YEAR ENDED DECEMBER 31, 2025
(Expressed in thousands of New Taiwan dollars)

Refer to Note 6(25) for the information related to income tax.

~87~

STANDARD CHEM. & PHARM. CO., LTD.

STATEMENT OF CHANGES IN PREPAYMENTS FOR EQUIPMENT

FOR THE YEAR ENDED DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Item	Beginning Balance	Additions	Transfer (Note)	Ending Balance	Note
Prepayments for equipment	$ 142,844	$ 202,924	($ 186,321)	$ 159,447	—

(Note) Transferred to ‘Property, Plant and Equipment’.

~88~

STANDARD CHEM. & PHARM. CO., LTD.

STATEMENT OF SHORT-TERM BORROWINGS

DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Nature	Description	Ending Balance	Contract Period	Interest Rate Range	Credit Line	Collateral
Unsecured bank borrowings	Bank of Taiwan	$ 60,000	2025.12.12~2026.01.12	1.80%	$ 100,000	None
	Bank of Taiwan	40,000	2025.12.26~2026.01.26	1.80%	100,000	None
	First Commercial Bank	40,000	2025.12.24~2026.01.22	1.80%	250,000	None
	First Commercial Bank	40,000	2025.12.15~2026.01.13	1.80%	250,000	None
	Export-Import Bank of the Republic of China	100,000	2025.09.25~2026.09.25	0.795%	100,000	None
	Taishin Bank	150,000	2025.12.12~2026.01.16	1.735%	150,000	None
	Yuanta Bank	100,000	2025.08.26~2026.02.26	1.78%	300,000	None
		$ 530,000

~89~

STANDARD CHEM. & PHARM. CO., LTD.

STATEMENT OF ACCOUNTS PAYABLE

DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Client Name	Description	Amount	Note
Non-related parties:
Company A	Accounts payable	$ 12,276	—
Company B	Accounts payable	11,238	—
Others (individually less than 5%)	Accounts payable	185,113	—
		208,627
Related parties:
Syngen Biotech Co., Ltd.	Accounts payable	21,887	—
Syn-Tech Chem. & Pharm. Co., Ltd.	Accounts payable	10,632	—
Souriree Biotech & Pharm. Co., Ltd.	Accounts payable	13,784	—
Others (individually less than 5%)	Accounts payable	2,837	—
		49,140
		$ 257,767

~90~

STANDARD CHEM. & PHARM. CO., LTD.

STATEMENT OF OTHER PAYABLES

DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Item	Description	Amount	Note
Wages and salaries payable	—	$ 115,972	—
Provision for employee benefits	—	30,746	—
Employees’ compensation and directors’ remuneration payable	—	26,629	—
Equipment payable	—	25,387	—
Others (individually less than 5%)	—	80,480	—
		$ 279,214

~91~

STANDARD CHEM. & PHARM. CO., LTD.

STATEMENT OF INCOME TAX LIABILITIES

DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Item	Description	Amount	Note
Corporate income tax payable	—	$ 73,812	—
Tax payable on undistributed earnings	—	1,097	—
		$ 74,909

~92~

STANDARD CHEM. & PHARM. CO., LTD.

STATEMENT OF OPERATING REVENUE

FOR THE YEAR ENDED DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Item	Volume	Amount		Note
		Subtotal	Total
Medicine:
Troche	1,580,864 thousand	$ 2,263,904		—
Ampoule	9,578 thousand	348,624		—
Capsule	155,774 thousand	264,181		—
Liquids	806,980 L	340,983		—
Others		209,442	$ 3,427,134	—
Dietary supplement			127,366	—
Others			3,652	—
			3,558,152
Less: Sales returns, discounts and allowances			( 223,815)	—
Operating revenue			$ 3,334,337

~93~

STANDARD CHEM. & PHARM. CO., LTD.

STATEMENT OF OPERATING COSTS

FOR THE YEAR ENDED DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Item	Amount
Merchandise at January 1, 2025	$ 43,188
Add : Merchandise purchased	178,691
Less : Transferred to expenses	( 1,208)
Scrapped	( 178)
Merchandise at December 31, 2025	( 47,229)
Merchandise sold during the year	173,264
Raw materials at January 1, 2025	233,962
Add : Raw materials purchased	595,303
Gain on physical inventory	431
Less : Transferred to expenses	( 4,463)
Scrapped	( 1,703)
Raw materials sold	( 10)
Raw materials at December 31, 2025	( 252,709)
Raw materials used during the year	570,811
Supplies at January 1, 2025	44,868
Add : Supplies purchased	218,018
Gain on physical inventory	530
Less : Transferred to expenses	( 3,377)
Scrapped	( 702)
Supplies at December 31, 2025	( 45,599)
Supplies used during the year	213,738
Direct labour	201,627
Manufacturing overhead	558,465
Manufacturing cost	1,544,641

~94~

STANDARD CHEM. & PHARM. CO., LTD.

STATEMENT OF OPERATING COSTS (CONTINUED)

FOR THE YEAR ENDED DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Item	Amount
Work in process at January 1, 2025	$ 65,329
Less: Transferred to expenses	( 121)
Scrapped	( 3,142)
Work in process at December 31, 2025	( 96,270)
Cost of finished goods	1,510,437
Finished goods at January 1, 2025	381,326
Less: Transferred to expenses	( 7,644)
Scrapped	( 24,030)
Finished goods at December 31, 2025	( 295,948)
Cost of production and marketing	1,564,141
Cost of raw materials sold	10
Cost of inventory sold	1,737,415
Loss on scrapped inventory	29,755
Reversal of allowance for inventory market price decline	( 7,045)
Gain on physical inventory	( 961)
Operating costs	$ 1,759,164

~95~

STANDARD CHEM. & PHARM. CO., LTD.

STATEMENT OF MANUFACTURING OVERHEAD

FOR THE YEAR ENDED DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Item	Description	Amount	Note
Wages and salaries	—	$ 187,037	—
Depreciation	—	97,130	—
Utilities	—	53,357	—
Processing expenses	—	66,157	—
Others (individually less than 5%)	—	154,784	—
		$ 558,465

~96~

STANDARD CHEM. & PHARM. CO., LTD.

STATEMENT OF SELLING EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Item	Description	Amount	Note
Wages and salaries	—	$ 245,531	—
Commission	—	54,154	—
Travel expenses	—	33,115	—
Others (individually less than 5%)	—	152,460	—
		$ 485,260

~97~

STANDARD CHEM. & PHARM. CO., LTD.

STATEMENT OF GENERAL AND ADMINISTRATIVE EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Item	Description	Amount	Note
Wages and salaries	—	$ 84,583	—
Insurance	—	18,898	—
Professional service fees	—	19,591	—
Depreciation	—	10,228	—
Others (individually less than 5%)	—	36,295	—
		$ 169,595

~98~

STANDARD CHEM. & PHARM. CO., LTD.

STATEMENT OF RESEARCH AND DEVELOPMENT EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Item	Description	Amount	Note
Wages and salaries	—	$ 59,205	—
Research expenses	—	45,862	—
Depreciation	—	13,813	—
Others (individually less than 5%)	—	29,611	—
		$ 148,491

~99~

STANDARD CHEM. & PHARM. CO., LTD.
STATEMENT OF OTHER INCOME
FOR THE YEAR ENDED DECEMBER 31, 2025
(Expressed in thousands of New Taiwan dollars)

Refer to Note 6(20) for the information related to other income.

~100~

STANDARD CHEM. & PHARM. CO., LTD.
STATEMENT OF OTHER GAINS AND LOSSES
FOR THE YEAR ENDED DECEMBER 31, 2025
(Expressed in thousands of New Taiwan dollars)

Refer to Note 6(21) for the information related to other gains and losses.

~101~

STANDARD CHEM. & PHARM. CO., LTD.
STATEMENT OF SUMMARY OF EMPLOYEE BENEFITS, DEPRECIATION, AND
AMORTISATION EXPENSES IN CURRENT PERIOD
FOR THE YEAR ENDED DECEMBER 31, 2025
(Expressed in thousands of New Taiwan dollars)

Refer to Note 6(23) for the additional information related to expenses by nature
and Note 6(24) for the information related to employee benefit expenses.

AI assistant

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

51900_rns_2026-04-24_9f5f0e59-994b-4009-bfc1-943d7ee0b6fd.pdf

KEY SOURCES OF ASSUMPTION UNCERTAINTY

INDEPENDENT AUDITORS' REPORT TRANSLATED FROM CHINESE

Opinion

Basis for opinion

Key audit matters

Existence of domestic sales revenue from human medicines

Description

How our audit addressed the matter

Other matter – Reference to the audits of other auditors

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

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

STANDARD CHEM. & PHARM. CO., LTD.

STANDARD CHEM. & PHARM. CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

STANDARD CHEM. & PHARM. CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

STANDARD CHEM. & PHARM. CO., LTD.

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2025 and 2024

1. HISTORY AND ORGANISATION

2. THE DATE OF AUTHORISATION FOR ISSUANCE OF THE PARENT COMPANY ONLY FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORISATION

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

4. SUMMARY OF MATERIAL ACCOUNTING POLICIES

(1) Compliance statement

(2) Basis of preparation

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

(2) Financial assets at amortised cost

(17) Other equity

(25) Income tax

7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and relationship

K. Ending balance of goods purchased

L. Other payables

M. Lease transactions—lessee

(3) Key management compensation

8. PLEDGED ASSETS

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT COMMITMENTS

10. SIGNIFICANT DISASTER LOSS

11. SIGNIFICANT EVENT AFTER THE BALANCE SHEET DATE

12. OTHERS

Price risk

Cash flow and fair value interest rate risk

(b) Credit risk

13. SUPPLEMENTARY DISCLOSURES

STANDARD CHEM. & PHARM. CO., LTD.

STATEMENT OF FINANCIAL ASSETS AT AMORTISED COST - CURRENT

DECEMBER 31, 2025

STANDARD CHEM. & PHARM. CO., LTD.

STATEMENT OF NOTES RECEIVABLE, NET

STANDARD CHEM. & PHARM. CO., LTD.

STATEMENT OF ACCOUNTS RECEIVABLE, NET

STANDARD CHEM. & PHARM. CO., LTD.

STATEMENT OF INVENTORIES

DECEMBER 31, 2025

STANDARD CHEM. & PHARM. CO., LTD.

STATEMENT OF CHANGES IN FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME - NON-CURRENT

FOR THE YEAR ENDED DECEMBER 31, 2025

STANDARD CHEM. & PHARM. CO., LTD.

STATEMENT OF CHANGES IN FINANCIAL ASSETS AT AMORTISED COST - NON-CURRENT

FOR THE YEAR ENDED DECEMBER 31, 2025

STANDARD CHEM. & PHARM. CO., LTD.

STATEMENT OF CHANGES IN PREPAYMENTS FOR EQUIPMENT

FOR THE YEAR ENDED DECEMBER 31, 2025

STANDARD CHEM. & PHARM. CO., LTD.

STATEMENT OF SHORT-TERM BORROWINGS

DECEMBER 31, 2025

STANDARD CHEM. & PHARM. CO., LTD.

STATEMENT OF ACCOUNTS PAYABLE

DECEMBER 31, 2025

STANDARD CHEM. & PHARM. CO., LTD.

STATEMENT OF OTHER PAYABLES

DECEMBER 31, 2025

STANDARD CHEM. & PHARM. CO., LTD.

STATEMENT OF INCOME TAX LIABILITIES

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