Sunny Friend Environmental Technology Co., Ltd. and Subsidiaries
Consolidated Financial Statements and Independent Accounting Auditors' Report
Years Ended December 31, 2025 and 2024
(Stock Code: 8341)

Company : No. 1-20, Yuandong Road, Yuanchang
Address : Township, Yunlin County
Telephone : (05) 788-5788

Notice to Readers:

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

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Sunny Friend Environmental Technology Co., Ltd. and Subsidiaries
2025 and 2024 Consolidated Financial Statements and Accounting Auditors' Report
Table of Contents

Items	Page
I. Cover Page	1
II. Table of Contents	2 ~ 3
III. Letter of Declaration	4
IV. Independent Auditors' Report	5 ~ 9
V. Consolidated Balance Sheet	10 ~ 11
VI. Consolidated Comprehensive Income Statement	12~13
VII. Consolidated Statement of Changes in Equity	14~15
VIII. Consolidated Cash Flow Statement	16 ~ 18
IX. Notes to the Consolidated Financial Statements	19~75
(I) Company history	19
(II) Date and procedures for passing the financial report	19
(III) Application of New and Revised International Financial Reporting Standards	19 ~ 20
(IV) Summary of significant accounting policies	20 ~ 33
(V) Critical accounting judgments and key sources of estimation and uncertainty	33
(VI) Statements of major accounting items	34 ~ 62

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Items	Page
(VII) Related-party transactions	63 ~ 64
(VIII) Pledged or mortgaged assets	64
(IX) Material contingent liabilities and unrecognized contractual commitments	64 ~ 65
(X) Losses due to major disasters	65
(XI) Major subsequent issues	65
(XII) Others	65 ~ 73
(XIII) Additional disclosures	73
(XIV) Operating segments information	74 ~ 75

Sunny Friend Environmental Technology Co., Ltd. and Subsidiaries
Consolidated Financial Statements Declaration

The entities that are required to be included in the combined financial statements of Sunny Friend Environmental Technology as of and for the year ended on December 31, 2025, under the “Criteria Governing the Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises” are the same as those included in the consolidated financial statements prepared in conformity with the International Accounting Standard 10, “Consolidated Financial Statements.” In addition, the information required to be disclosed in the combined financial statements is included in the consolidated financial statements. Consequently, Sunny Friend Environmental Technology and Subsidiaries do not prepare a separate set of combined financial statements.

Very truly yours

Company Name: Sunny Friend Environmental Technology Co., Ltd. and Subsidiaries

Responsible Person: Fang-Cheng Chang

March 5, 2026

Independent Auditors' Report
(2026) Cai-Shen-Bao-Zi No. 25004901

Sunny Friend Environmental Technology Co., Ltd.

Opinions

We have audited the accompanying consolidated balance sheets as of December 31, 2025 and 2024 and the consolidated statements of comprehensive income, changes in equity and cash flows for the years starting January 1 and ending on December 31, 2025 and 2024, as well as the notes to the consolidated financial statements (including the summary of major accounting policies), for Sunny Friend Environmental Technology and subsidiaries (known as Sunny Friend).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Sunny Friend Environmental Technology and subsidiaries as of December 31, 2025 and 2024, and the results of their consolidated operations and their consolidated cash flows for those years then ended in conformity with the Guidelines Governing the Preparation of Financial Reports by Securities Issuers, the International Financial Reporting Standards, International Accounting Standards, interpretation as well as related guidance translated by Accounting Research and Development Foundation endorsed by the Financial Supervisory Commission of the Republic of China with the effective dates.

Basis for Opinions

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards generally accepted in Taiwan. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Consolidated Financial Statements section of our report. We are independent of Sunny Friend in accordance with the Professional Ethics for Certified Public Accountant of the Republic of China and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Issues

Key audit issues are those that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the year ended December 31, 2025. These matters were addressed in the context of our audit of the consolidated financial statements as a

whole, and in forming our opinion thereon, and we do not provide a separate opinion on these issues.

Key audit matters for the Company’s consolidated financial statements for the year ended December 31, 2025 are stated as follows:

Correctness of Income from Waste Disposal

Description

For the accounting policies on operating revenue, refer to Note IV (XXVII) of the consolidated financial statements. For the description of operating revenue items, refer to Note VI (XX) of the consolidated financial statements.

The business revenue of Sunny Friend mainly comes from waste transportation and waste disposal. In 2025, the revenue from waste disposal totaled NT$2,970,010,000, accounting for 74.43% of the consolidated operating revenue. The revenue is recognized based on the various waste disposal processes (incineration, physicochemical and solidification) commissioned by different clients. The price and quantity are based on the contracts signs with various clients and the reports provided by the waste treatment plants. Due to a large number of clients and medical institutions that commission the Company for waste disposal and that the types, quantities, procedures and pricing are all different, partial manual operations of the handling, recording and maintaining reports and records may result in the incorrect calculation of revenue from waste disposal. The amount can have a significant impact on the consolidated financial statements. Therefore, the accountants believe that the correctness of the waste disposal income shall be one of the most important issues for the audit this year.

Corresponding Audit Procedures

Our key audit procedures performed with respect to the above area included the following:

Based on our understanding of the Company's business and industry, we assessed the reasonableness of revenue recognition policies and procedures and confirmed that these were consistently applied in the financial statements.
We understood the processes of waste collection, management and disposal and assessed and tested relevant internal controls, including the verification of consistency between the quantities commissioned by clients, handled by the processing plants and transported by external transportation firms and inspection of the actual processing volume of and the

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reported processing volume by the processing plant.

We verified the accuracy of the operating statement that was used in revenue recognition by management, including randomly checking the details of items and quantities of billing charges against the actual contracts and daily processing reports of the plant to recalculate the accuracy and ascertained that these were consistent with the carrying amount of revenue.

Other matters – Parent company only financial statements

We have audited and expressed an unqualified opinion on the parent company only financial statements of Sunny Friend for the years ended December 31, 2025 and 2024.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

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

In preparing the consolidated financial statements, management is responsible for assessing the Sunny Friend'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.

Those charged with governance, including the audit committee, are responsible for overseeing Sunny Friend's financial reporting process.

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to

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issue an auditor's 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 auditing standards generally accepted in Taiwan will always detect a material misstatement when it exists. Misstatements can arise from fraud or error. Misstatements are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with the auditing standards generally accepted in Taiwan, we exercise professional judgment and maintain professional skepticism throughout the audit. We also conduct the following tasks:

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control.
Obtain an understanding of the internal controls 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 controls.
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 auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's 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 consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements for the year ended December 31, 2025 and are, therefore, the key audit matters. We describe these matters in our auditor's report unless the 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.

PricewaterhouseCoopers, Taiwan
Chin-Lien Huang
Accountant
Chih-Fan Yu
Financial Supervisory Commission
Approval Document Number: Jin-Guan-Zheng-Shen-Zi.
No.1100348083
Approval Document Number: Jin-Guan-Zheng-Shen-Zi.
No.1110349013
March 5, 2026

Sunny Friend Environment Technology Co., Ltd. and Subsidiaries
Consolidated Balance Sheet
December 31, 2025 and 2024
Unit: NT$1,000

	Asset	Notes	December 31, 2025		December 31, 2024
			Amount	%	Amount	%
Current assets
1100	Cash and cash equivalents	VI (I)	$ 655,554	7	$ 741,113	7
1110	Financial assets at fair value through VI (II)
	profit or loss - Current		167,804	2	280,440	3
1136	Financial assets at amortized cost - VI (I) (III) and VIII
	Current		166,594	2	191,164	2
1140	Contract assets - Current	VI (XX) and XII(II)	312,266	3	-	-
1150	Notes receivable, net	VI (IV) and XII (II)	23,588	-	43,947	1
1170	Accounts receivable, net	VI (IV) and XII (II)	339,389	3	561,698	5
1180	Accounts receivable- Related parties	VI (IV) + VII and XII
		(II)	1,349	-	810	-
1200	Other receivables		3,423	-	4,546	-
130X	Inventories		21,238	-	26,150	-
1410	Prepayments		210,507	2	205,749	2
1470	Other current assets		10,747	-	10,334	-
11XX	Total Current Assets		1,912,459	19	2,065,951	20
Non-current assets
1535	Financial assets at amortized cost - VI (I) (III) and VIII
	Non-current		25,158	-	32,494	-
1600	Property, plant and equipment	VI (V) and VIII	6,590,972	66	6,793,271	64
1755	Right-of-use assets	VI (VI) and VII	636,677	6	689,589	6
1780	Intangible assets	VI (VII)	580,294	6	665,745	6
1840	Deferred income tax assets	VI (XXVII)	64,456	1	70,681	1
1900	Other non-current assets	VI (V)(IX)	248,550	2	269,597	3
15XX	Total Non-current Assets		8,146,107	81	8,521,377	80
1XXX	Total Assets		$ 10,058,566	100	$ 10,587,328	100

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Sunny Friend Environment Technology Co., Ltd. and Subsidiaries
Consolidated Balance Sheet
December 31, 2025 and 2024

	Liabilities and Stockholders’ Equity	Notes	December 31, 2025		December 31, 2024
			Amount	%	Amount	%
Current liabilities
2100	Short-term debts	VI (X) and VIII	$ 48,116	-	$ 43,448	-
2130	Contract liabilities - Current	VI (XX)	169,703	2	222,000	2
2150	Notes payable		9,246	-	8,675	-
2170	Accounts payable		165,875	2	155,732	2
2180	Accounts payable- Related parties	VII	17,837	-	1,428	-
2200	Other payables	VI (XI)	524,807	5	479,852	5
2230	Current income tax liabilities	VI (XXVII)	165,658	2	139,636	1
2250	Provisions -Current	VI (XIV)	10,873	-	20,707	-
2280	Lease liabilities - Current	VI (VI) and VII	28,267	-	27,336	-
2320	Long-term liabilities - Due within one year	VI (XII) (XV) and VIII	38,463	-	113,227	1
2399	Other current liabilities - Others	VI(IV)	57,611	1	48,011	1
21XX	Total Current Liabilities		1,236,456	12	1,260,052	12
Non-current liabilities
2527	Contract liabilities-Non current	VI (XX)	3,705	-	4,675	-
2540	Long-term borrowings	VI (XII) and VIII	2,482,500	25	2,981,500	28
2550	Provisions - Non-current	VI (XIV)	64,696	-	48,003	1
2570	Deferred income tax liabilities	VI (XXVII)	85,797	1	145,753	1
2580	Lease liabilities - Non-current	VI (VI) and VII	289,197	3	333,918	3
2600	Other non-current liabilities	VI (IV) (XV)	89,213	1	110,988	1
25XX	Total Non-current Liabilities		3,015,108	30	3,624,837	34
2XXX	Total liabilities		4,251,564	42	4,884,889	46
Equity attributable to shareholders of the parent company
	Capital	VI (XVII)
3110	Capital stock		1,300,000	13	1,300,000	12
	Capital surplus	VI (XVIII)
3200	Capital surplus		2,588,427	26	2,588,427	25
	Retained earnings	VI (XIX)
3310	Legal reserve		824,947	8	776,927	7
3320	Special reserve		25,922	-	115,699	1
3350	Unappropriated earnings		619,425	6	488,803	5
	Other equity interests
3400	Other equity interests		( 41,290)	-	( 25,922)	-
31XX	Equity attributable to shareholders of the parent company		5,317,431	53	5,243,934	50
36XX	Non-controlling Interests	IV (III) and VI (XXVIII)	489,571	5	458,505	4
3XXX	Total stockholders’ equity		5,807,002	58	5,702,439	54
	Material contingent liabilities and unrecognized contractual commitments	IX
	Major Subsequent Issues	XI
3X2X	Total Liabilities and Equity		$ 10,058,566	100	$ 10,587,328	100

Please refer to the accompanying notes to the financial statements as they are an integral part of the consolidated financial report.

Chairman: Fang-Cheng Chang
Managerial Officer: Fang-Cheng Chang
Principal Accounting Officer: Ming-Hung Hsieh

Sunny Friend Environment Technology Co., Ltd. and Subsidiaries
Consolidate Statement of Comprehensive Income
January 1 to December 31, 2025 and 2024

Items	Notes	2025		2024
		Amount	%	Amount	%
4000 Operating revenue	VI(XX) · VII and IX	$ 3,990,550	100	$ 3,696,692	100
5000 Operating costs	VI (VII)(XXV) (XXVI) · VII and IX	( 2,266,822)	( 57)	( 2,130,056)	( 58)
5900 Gross profit		1,723,728	43	1,566,636	42
Operating expenses	VI (VII)(XXV) (XXVI)
6100 Marketing expenses		( 194,714)	( 5)	( 225,250)	( 6)
6200 General and administrative expenses		( 558,635)	( 14)	( 577,032)	( 16)
6300 Research and development expenses		( 1,791)	-	( 4,514)	-
6450 Expected loss on credit impairment	VI (XXV) and XII (II)	( 20,640)	-	( 42,384)	( 1)
6000 Total operating expenses		( 775,780)	( 19)	( 849,180)	( 23)
6900 Operating profit		947,948	24	717,456	19
Non-operating income and expenses
7100 Interests income	VI (III)(XXI)	7,144	-	10,525	-
7010 Other income	VI (XXII)	20,568	1	39,039	1
7020 Other benefits and losses	VI (II)(XXIII)	( 28,479)	( 1)	( 47,227)	( 1)
7050 Financial cost	VI (VI)(XXIV) and VII	( 36,393)	( 1)	( 48,521)	( 1)
7000 Total operating income and expenses		( 37,160)	( 1)	( 46,184)	( 1)
7900 Profit before income tax		910,788	23	671,272	18
7950 Income tax expense	VI (XXVII)	( 222,435)	( 6)	( 113,119)	( 3)
8200 Profit for the year		$ 688,353	17	$ 558,153	15
Other comprehensive income for the year (net)
Items that will be re-classified to profit or loss
8361 Exchange differences arising on the translation of foreign operations		($ 15,368)	-	$ 90,986	3
8300 Other comprehensive income for the year (net)		($ 15,368)	-	$ 90,986	3

(Continued on next page)

Sunny Friend Environment Technology Co., Ltd. and Subsidiaries
Consolidate Statement of Comprehensive Income
January 1 to December 31, 2025 and 2024

	Items	Notes	2025		2024
			Amount	%	Amount	%
8500	Total comprehensive income for the year		$ 672,985	17	$ 649,139	18
	Net income attributable to:
8610	Shareholders of the parent company		$ 582,865	14	$ 480,203	13
8620	Non-controlling interest		$ 105,488	3	$ 77,950	2
	Total of comprehensive income attributable to:
8710	Shareholders of the parent company		$ 567,497	14	$ 569,980	16
8720	Non-controlling interest		$ 105,488	3	$ 79,159	2
	Earnings per share	VI (XXIX)
9750	Basic earnings per share		$	4.48	$	3.69
9850	Diluted earnings per share		$	4.46	$	3.68

Unit: NT$1,000
(Except for earnings per share)

Please refer to the accompanying notes to the financial statements as they are an integral part of the consolidated financial report.

Chairman: Fang-Cheng Chang
Managerial Officer: Fang-Cheng Chang
Principal Accounting Officer: Ming-Hung Hsieh

Sunny Friend Environment Technology Co., Ltd. and Subsidiaries
Consolidated Statement of Changes in Equity
January 1 to December 31, 2025 and 2024
Equity attributable to shareholders of the parent company
Unit: NT$1,000

	Notes	Capital stock	Capital surplus	Retained earnings			Exchange differences arising on the translation of foreign operations	Total	Non-controlling interest	Total stockholders' equity
				Legal reserve	Special reserve	Unappropriated earnings
2024
Balance January 1, 2024		$ 1,300,000	$ 2,558,820	$ 736,071	$ 65,986	$ 463,169	($ 115,699)	$ 5,008,347	$ 258,968	$ 5,267,315
Profit for the year VI(XXVIII)		-	-	-	-	480,203	-	480,203	77,950	558,153
Other comprehensive income for the year VI(XXVIII)		-	-	-	-	-	89,777	89,777	1,209	90,986
Total comprehensive income for the year		-	-	-	-	480,203	89,777	569,980	79,159	649,139
Appropriation of 2023 earnings: VI(XIX)
Provisions for Legal reserve		-	-	40,856	-	( 40,856)	-	-	-	-
Provisions for Special reserve		-	-	-	49,713	( 49,713)	-	-	-	-
Cash dividends		-	-	-	-	( 364,000)	-	( 364,000)	-	( 364,000)
Distribution of cash from capital surplus VI(XVIII)(XIX)		-	( 130,000 )	-	-	-	-	( 130,000)	-	( 130,000)
Share-based payment VI(XVII)(XVII)(XXVIII)		-	3,735	-	-	-	-	3,735	3,735	7,470
The net difference between the fair value of the consideration paid or received from acquiring or disposing of subsidiaries and the carrying amounts of the subsidiaries	IV(III)VII(XVII)(XXVIII)
Changes in ownership interests in subsidiaries	VI(XVIII)(XXVIII)	-	28,827	-	-	-	-	28,827	( 33,918)	( 5,091)
Cash dividends paid to non-controlling interests	VI(XXVIII)	-	127,045	-	-	-	-	127,045	182,484	309,529
Balance December 31, 2024		$ 1,300,000	$ 2,588,427	$ 776,927	$ 115,699	$ 488,803	($ 25,922)	$ 5,243,934	$ 458,505	$ 5,702,439
2025
Balance January 1, 2025		$ 1,300,000	$ 2,588,427	$ 776,927	$ 115,699	$ 488,803	($ 25,922)	$ 5,243,934	$ 458,505	$ 5,702,439
Profit for the year VI(XXVIII)		-	-	-	-	582,865	-	582,865	105,488	688,353
Other comprehensive income for the year		-	-	-	-	-	( 15,368)	( 15,368)	-	( 15,368)
Total comprehensive income for the year		-	-	-	-	582,865	( 15,368)	567,497	105,488	672,985

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Sunny Friend Environment Technology Co., Ltd. and Subsidiaries

Consolidated Statement of Changes in Equity

January 1 to December 31, 2025 and 2024

Equity attributable to shareholders of the parent company

Unit: NT$1,000

	Notes	Capital stock	Capital surplus	Retained earnings			Exchange differences arising on the translation of foreign operations	Total	Non-controlling interest	Total stockholders' equity
				Legal reserve	Special reserve	Unappropriated earnings
Appropriation of 2024 earnings:	VI (XIX)
Provisions for Legal reserve		-	-	48,020	-	( 48,020 )	-	-	-	-
Reversed for Special reserve		-	-	-	( 89,777)	89,777	-	-	-	-
Cash dividends		-	-	-	-	( 494,000 )	-	( 494,000 )	-	( 494,000 )
Cash dividends paid to non-controlling interests	VI(XXVIII)	-	-	-	-	-	-	-	( 74,422)	( 74,422)
Balance December 31, 2025		$ 1,300,000	$ 2,588,427	$ 824,947	$ 25,922	$ 619,425	($ 41,290 )	$ 5,317,431	$ 489,571	$ 5,807,002

Please refer to the accompanying notes to the financial statements as they are an integral part of the consolidated financial report.

Chairman: Fang-Cheng Chang

Managerial Officer: Fang-Cheng Chang

Principal Accounting Officer: Ming-Hung Hsieh

Sunny Friend Environment Technology Co., Ltd. and Subsidiaries
Consolidated Cash Flow Statement
January 1 to December 31, 2025 and 2024

	Notes	2025	2024
Cash Flow from Operating Activities
Profit before income tax		$ 910,788	$ 671,272
Adjustment
Adjustments to reconcile profit (loss)
Net gain on financial assets at fair value through profit and loss	VI(II)(XXIII)	( 3,451 )	( 440 )
Expected loss on credit impairment	VI(XXV) and XII (II)	20,640	42,384
Loss on disposal of property, plant and equipment	VI (XXIII)	575	13,117
Depreciation expense	VI (V) (VI) (XXV)	641,291	601,777
Amortization expense	VI(VII) (XXV)	88,077	77,700
Interests income	VI (XXI)	( 7,144 )	( 10,525 )
Interest expenses	VI (XXIV)	36,393	48,521
Employee stock option compensation expense	VI (XVI) (XXVI)	-	7,470
Goodwill impairs loss	VI(VII)(XXIII)	-	81,422
Impairment on property, plant and equipment	VI(V)(VIII)(XXIII)	47,359	-
Changes in operating assets and liabilities
Changes in operating assets
Acquisition of financial assets at fair value through profit or loss		116,087	( 280,000 )
Contract liabilities - Current		( 312,266 )	-
Notes receivable		19,953	( 14,251 )
Accounts receivable		200,190	( 49,498 )
Accounts receivable- Related parties		( 539 )	( 563 )
Other receivables		1,026	( 1,165 )
Inventories		4,154	( 893 )
Prepayments		( 2,939 )	( 679 )
Other current assets		( 280 )	( 896 )
Changes in operating liabilities
Contract liabilities - Current and Non-current		( 50,856 )	59,383
Notes payable		585	1,866
Accounts payable		9,781	21,331
Accounts payable- Related parties		16,394	1,212
Other payables		( 28,063 )	16,055
Other current liabilities		2,407	467
Provisions - Current and Non-current	VI (XIV)	16,692	10,549
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Sunny Friend Environment Technology Co., Ltd. and Subsidiaries
Consolidated Cash Flow Statement
January 1 to December 31, 2025 and 2024

Unit: NT$1,000

Sunny Friend Environment Technology Co., Ltd. and Subsidiaries
Consolidated Cash Flow Statement
January 1 to December 31, 2025 and 2024

	Notes	2025	2024
Other non-current liabilities		($ 9,516)	($ 11,822)
Cash flow from operating activities		1,717,338	1,283,794
Interest received		7,036	10,538
Interest paid		( 11,751)	( 28,320)
Income tax paid		( 250,574)	( 159,467)
Net cash generated by operating activities		1,462,049	1,106,545
Cash Flow from Investing Activities
Acquisition of financial assets at amortized cost		( 160,542)	( 125,928)
Disposal of financial assets at amortized cost		192,066	124,869
Acquisition of property, plant and equipment	VI (XXX)	( 372,490)	( 544,040)
Proceeds from disposal or property, plant and equipment		13,434	17,654
Acquisition of intangible assets	VI (XXX)	( 16,168)	( 17,313)
Refundable deposits paid (listed in “Other non-current assets”)		( 46,057)	( 31,070)
Refundable deposits refunded (listed in “Other non-current assets”)		33,367	19,809
Increase in other non-current assets		( 13,421)	( 60,702)
Net cash used in investing activities		( 369,811)	( 616,721)
Cash Flow from Financing Activities
Increase in short-term loans	VI (XXXI)	2,346,518	2,227,020
Decrease in short-term loans	VI (XXXI)	( 2,342,166)	( 2,264,067)
Increase in short-term notes payable	VI (XXXI)	30,000	-
Decrease in short-term notes payable	VI (XXXI)	( 30,000)	-
Increase in long-term borrowings	VI (XXXI)	650,000	2,212,500
Re-payment in long-term borrowings	VI (XXXI)	( 1,224,000)	( 2,396,907)
(Continued on next page)

Sunny Friend Environment Technology Co., Ltd. and Subsidiaries
Consolidated Cash Flow Statement
January 1 to December 31, 2025 and 2024

	Notes	2025	2024
Increase in guarantee deposits received (listed in "Other current liabilities" and "Other non-current liabilities")	VI (XXXI)	$ 30,256	$ 14,746
Decrease in guarantee deposits received (listed in "Other current liabilities" and "Other non-current liabilities")	VI (XXXI)	( 20,975 )	( 15,597 )
Re-payment of principal of lease liabilities	VI (XXXI)	( 29,636 )	( 27,469 )
Cash dividends paid	VI (XIX)	( 494,000 )	( 494,000 )
Cash dividends distributed by subsidiaries	VI(XXVIII)	( 74,422 )	( 31,923 )
Cash capital increase in subsidiary	VI(XXVIII)	-	309,529
Acquisition of subsidiary's equity	VI(XXVIII)	-	( 5,091 )
Net cash used in financing activities		( 1,158,425 )	( 471,259 )
Effect of exchange rate changes on cash and cash equivalents		( 19,372 )	( 36,521 )
Net decrease in cash and cash equivalents		( 85,559 )	( 17,956 )
Beginning of year cash and cash equivalents		741,113	759,069
End of year cash and cash equivalents		$ 655,554	$ 741,113

Please refer to the accompanying notes to the financial statements as they are an integral part of the consolidated financial report.

Chairman: Fang-Cheng Chang
Managerial Officer: Fang-Cheng Chang
Principal Accounting Officer: Ming-Hung Hsieh

Sunny Friend Environmental Technology Co., Ltd. and Subsidiaries
Notes to Consolidated Financial Statement
Years Ended December 31, 2025 and 2024
Unit: NT$1,000
(Unless otherwise specified)

I. Company history

Sunny Friend Environmental Technology Co., Ltd. (hereinafter referred to as the “Company”) was established in Taiwan on November 29, 1994. Originally named as “Sunny Friend Waste Treatment Co., Ltd.,” the Company was renamed to the current name at the shareholders; meeting in May 2001. The main areas of business of the Company and the subsidiaries (collectedly referred to as the Corporate Group) cover:

Medical waste incineration.
Treatment of hazardous business waste, infectious medical waste, general waste and general business waste.
Installation engineering for waste cleaning equipment. Environmental engineering consulting.
Manufacturing of pollution control equipment.
Specialized construction for environmental protection engineering.
Manufacturing and sales of plastic building materials.

The Company's stock has been listed in the Taiwan Stock Exchange since March 23, 2015.

II. Date and Procedures for Passing the Financial Report

The accompanying consolidated financial statements were approved and authorized for issuance by the Board of Directors on March 5, 2026.

III. Application of New and Revised International Financial Reporting Standards

(I) The impact from adopting the newly released and revised International Financial Reporting Standards recognized by the Financial Supervisory Commission.

The following table summarizes the applicable newly released, corrected and amended standards and interpretations of the International Financial Reporting Standards recognized by the Financial Supervisory Commission in 2025:

Newly released / corrected / amended standards and interpretations	Effective Date Issued by IASB
Amendment to IAS No. 21 “Lack of Convertibility”	January 1, 2025

The Corporate Group believes that the adoption of aforementioned IFRSs will not have a significant effect on financial position and performance.

(II) Impact of the newly released and amended IFRS recognized by the FSC not yet adopted by the Company

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Newly released / corrected / amended standards and interpretations	Effective Date Issued by IASB
Amendments to IFRS 9 and IFRS 7 "Amendments to the Classification and Measurement of Financial Instruments"
Amendment to IFRS 9 and IFRS 7 regarding "Contracts Referencing Nature-dependent Electricity"	January 1, 2026
IFRS 17 - Insurance contracts	January 1, 2026
Amendment to IFRS 17 - Insurance contracts
Amendment to IFRS 17 “Initial Application of IFRS 17 and IFRS 9 -Comparative Information”
Annual Improvements to IFRS Accounting Standards - Volume 11	January 1, 2023
	January 1, 2023
	January 1, 2026

The Corporate Group believes that the adoption of aforementioned IFRSs will not have a significant effect on financial position and performance.

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

The following table summarizes the applicable newly released, corrected and amended standards and interpretations of the International Financial Reporting Standards issued by the IASB but not yet recognized by the FSC:

Newly released / corrected / amended standards and interpretations	Effective Date Issued by IASB
IFRS 10 and IAS 28 amendments, Sale or contribution of assets between an investor and its associate or joint venture	To be determined by the IASB
IFRS 18 “Presentation and Disclosures in Financial Statements”
Amendments to IFRS 19 "Subsidiaries without Public Accountability: Disclosure"
Amendments to IAS 21 “Translation to a Hyperinflationary Presentation Currency”	January 1, 2027(Note)
January 1, 2027
January 1, 2027

Note: On September 25, 2025, the Financial Supervisory Commission (FSC) announced in a press release that public companies will be required to apply International Financial Reporting Standard 18 (IFRS 18) starting from fiscal year 2028. In addition, entities that wish to apply IFRS 18 earlier may do so upon the FSC’s endorsement of the standard.

Except for the following, the Corporate Group believes that the adoption of aforementioned IFRSs will not have a significant effect on the financial position and performance.

IFRS 18 “Presentation and Disclosures in Financial Statements”

IFRS 18 “Presentation and Disclosures in Financial Statements” replaces IAS 1 and updates the structure of the statement of comprehensive income, adds disclosures on management performance measurement, and strengthens the summary and segment principles applied to the main financial statements and notes.

IV. Summary of Significant Accounting Policies

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

(I) Compliance statement

These consolidated financial statements of the Group have been prepared in accordance with the “Rules Governing the Preparation of Financial Statements by Securities Issuers”,

International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the FSC (collectively hereinafter referred to as the "IFRSs").

(II) Basis of preparation

These consolidated financial statements have been prepared under the historical cost convention.
The preparation of financial statements in conformity with IFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group's accounting policies. The areas involving a higher degree of judgment or complexity or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note V.

(III) Basis of consolidation

The basis for the preparation of consolidated financial statements

(1) All subsidiaries are included in the Corporate Group’s consolidated financial statements. Subsidiaries are all entities (including structured entities) controlled by the Corporate Group. The Corporate Group controls an entity when the Group is exposed, or has rights, to variable returns from its involvement with the entity and can affect those returns through its power over the entity. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases when the Group loses control of the subsidiaries.

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

(3) The profit and loss and the components of other comprehensive income attributable to the owners of the parent company and non-controlling interest. The total comprehensive income also attributes to the owners of the parent company and non-controlling interest, even if this results in the non-controlling interests having a deficit balance.

(4) Changes in a parent's ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transactions with non-controlling interests) are equity transactions, and they are considered as transactions with owners in their capacity as owners. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is directly recognized in equity.

(5) When the Group loses control of a subsidiary, the Group remeasures any investment retained in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial recognition of a financial asset or the cost on initial recognition of the associate or joint venture. Any difference between fair value and the carrying amount is recognized in profit or loss. All amounts previously recognized in other comprehensive income in relation to the subsidiary are reclassified to profit or loss on the same basis as would be required if the related assets or liabilities were disposed of. That is, when the Group loses control of a subsidiary, all gains or losses previously recognized in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to

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profit or loss when the related assets or liabilities are disposed of.

Subsidiaries included in the consolidated financial statements:

Name of Investor	Name of Subsidiary	Main Business Activity	Ownership (%)		Description
			December 31, 2025	December 31, 2024
The Company	Chin Hsin Environmental Engineering Co., Ltd. (Chin Hsin)	Disposal of medical waste	57.42	57.42	Note 1
"	Full Giant Resources Ltd. (Full Giant)	Holding company	100.00	100.00
Chin Hsin	Liang Wei Environmental Engineering Co., Ltd. (Liang Wei)	Disposal of medical waste	100.00	100.00
"	Cheng Shin Environmental Engineering Co., Ltd. (Cheng Shin)	Disposal of medical waste	100.00	100.00
"	Huan Hsin Precision Co., Ltd. (Huan Hsin)	Manufacturing of building materials	-	100.00	Note 2
Full Giant	Arise Profits Ltd.(Arise)	Investment	100.00	100.00
"	Langfang Ruentex Environmental Technology Co., Ltd. (Langfang Ruentex)	Environmental sanitation and pollution control service	-	100.00	Note 3
"	Yuncheng Ruentex Environmental Technology Co., Ltd.(Yuncheng Ruentex)	Environmental sanitation and pollution control service	63.35	-	Note 6
"	Jiangsu Suqian Ruentex Environmental Technology Co., Ltd. (Suqian Ruentex)	Environmental sanitation and pollution control service	48.05	-	Note 6
"	Beijing Ruentex Environmental Technology (Beijing Ruentex)	Environmental sanitation and pollution control service	3.47	-	Note 6
Arise	Beijing Ruentex	Environmental sanitation and pollution control service	96.53	100.00	Note 6
Beijing Ruentex	Suqian Ruentex	Environmental sanitation and pollution control service	51.95	100.00	Note 6
"	Yuncheng Ruentex	Environmental sanitation and pollution control service	36.65	100.00	Note 6
"	Rizhao Panyue	Environmental sanitation and pollution control service	100.00	100.00	Note 4、5 and 7

Note 1 For the purpose of issuing new shares for public underwriting before the IPO, the board resolution of the meeting held on March 28, 2024 approved a cash capital increase by issuing 6,000 thousand shares at $45 per share for the Group's subsidiary, Chin Hsin Environmental Engineering. All shares are ordinary shares. June 14, 2024 is the base date of capital increase, and the change registration is completed on July 11, 2024. The company did not subscribe to the shares in proportion to the shareholding percentage, so the shareholding dropped to 57.42%, and recognized a change of $127,045 in ownership interest, capital reserves - recognized changes in

ownership interests in the subsidiary. For details on transactions with non-controlling interests, please refer to Note VI (XXVIII).

Note 2 Chin Hsin, a subsidiary of the Group, purchased 1,000 thousand shares of Huan Hsin at $5 in December 2024, increasing the shareholding from 66.67% to 100%. The capital surplus -- difference between the fair value of the consideration paid or received from acquiring or disposing of subsidiary and the carrying amounts of the subsidiary of $3,011 was recognized. For details on transactions with non-controlling interests, please refer to Note VI (XXVIII).

The board resolution on December 27, 2024 approved the subsidiary Chin Hsin's short-form merger with Huan Hsin in accordance with the Business Mergers and Acquisitions Act in order to strengthen its business management. The merger record date is February 3, 2025. The process has been completed.

Note 3 The Group resolved to withdraw from the investment project of its subsidiary, Langfang, as the project could not proceed due to the lack of suitable land and overall planning considerations. The cancellation procedure was completed on March 13, 2025. On July 22, 2025, the Ministry of Economic Affairs Investment Commission approved the revocation of the aforementioned investment (Approval No. Jing-Shou-Shen-Zi 11420125170). The investment funds have been repatriated to Full Giant.

Note 4 The Company's subsidiary Beijing Ruentex signed an equity transfer agreement with an unrelated party in January 2024. The Group purchased 10% of the equity of Rizhao Panyue for RMB 20,000. Beijing Ruentex's shareholding increased from 80% to 90%, and the Company's direct and indirect holdings of Rizhao Panyue's equity increased from 90% to 100%. The capital surplus - difference between the fair value of the consideration paid or received from acquiring or disposing of subsidiary and the carrying amounts of the subsidiary of $27,098 was recognized. For details on transactions with non-controlling interests, please refer to Note VI (XXVIII).

Note 5 In order to improve the group's operating synergy, management costs and operational efficiency, the Group's subsidiary Full Giant conducted organizational restructuring of its holding of Rizhao Panyue and Beijing Ruentex, held by the Group's subsidiary Arise. The restructuring has been approved by the board resolution of the Company's 4th tier subsidiary Rizhao Panyue on October 1, 2024, with Beijing Ruentex acquiring 10% equity of Rizhao Panyue held by Full Giant for RMB 20,000.

Note 6 The resolution of the Company's Board at the meeting held on September 24, 2024 approved the subsidiary Full Giant's capitalization of debt from its funds lent to its subsidiary in China. It is estimated that the capitalization amount for Suqian Ruentex will be USD 13,500 thousand, that for Yuncheng Ruentex will be USD 8,500 thousand and RMB 175,950 thousand, and that for Beijing Ruentex will be USD 3,800 thousand.

For the aforementioned debt-for-equity swap of Suqian Ruentex, approval was obtained from the Department of Investment Review, Ministry of Economic Affairs on November 28, 2024. The capital increase base date was April 25, 2025, and the change registration was completed on September 19, 2025.

For debt-for-equity swap of Yuncheng Ruentex, approval was obtained from the Department of Investment Review, Ministry of Economic Affairs on November 28, 2024. The capital increase base date was March 18, 2025, and the change registration

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was completed on May 15, 2025.

For debt-for-equity swap of Beijing Ruentex, approval was obtained from the Department of Investment Review, Ministry of Economic Affairs on September 3, 2025. The capital increase base date was September 8, 2025, and the change registration was completed on December 30, 2025.

Note 7 On December 6, 2024, the Board of Directors of the Group's subsidiary Beijing Ruentex resolved to convert its receivables of RMB 42,000 thousand arising from funds lent to Rizhao Panyue into capital. In addition, on September 26, 2025, the Board of Directors resolved to carry out a cash capital increase of RMB 10,000 thousand for Rizhao Panyue and to convert the remaining receivables of RMB 38,937 thousand arising from funds lent to it into capital, totaling RMB 90,937 thousand. The capital increase reference date was September 26, 2025. The change registration was completed on December 1, 2025.

Subsidiaries not included in the consolidated financial statements: None.
Adjustments for subsidiaries with different balance sheet dates: None.
Materiality constraint: None.
Subsidiaries that have non-controlling interests that are material to the Corporate Group:

(1) The total amount in non-controlling interests of the Group as of December 31, 2025 and 2024 are $489,571 and $458,505. The following is information on subsidiaries that have non-controlling interests that are material to the Corporate Group:

Name of Subsidiary	Main location of business	Non-controlling Interests
		December 31, 2025		December 31, 2024
		Amount	Ownership in %	Amount	Ownership in %
Chin Hsin	Taiwan	$ 489,571	42.58%	$ 458,505	42.58%

(2) Aggregate financial information of subsidiaries:

Balance Sheet

	Chin Hsin
	December 31, 2025	December 31, 2024
Current assets	$ 694,610	$ 840,847
Non-current assets	930,680	702,560
Current liabilities	( 447,062)	( 410,066)
Non-current liabilities	( 28,478)	( 56,530)
Total net assets	$ 1,149,750	$ 1,076,811

Comprehensive Income

	Chin Hsin
	2025		2024
Revenue	$	865,617	$ 698,725
Profit before income tax		309,613	263,794
Income tax expense	(	61,874)	( 53,821)
Income for the year		247,739	209,973
Total comprehensive income for the year	$	247,739	$ 209,973
Total of comprehensive income attributable to Non-controlling interest	$	105,488	$ 83,530
Dividends paid to non-controlling interests	$	74,422	$ 31,923
Cash Flow Statement
	Chin Hsin
	2025		2024
Net cash generated by(used in) operating activities	$	472,358	($ 2,921)
Net cash used in investing activities	(	331,374)	( 173,611)
Net cash (used in) generated by financing activities	(	177,787)	189,305
(Decrease) increase in cash and cash equivalents	(	36,803)	12,773
Beginning of year cash and cash equivalents		328,264	315,491
End of year cash and cash equivalents	$	291,461	$ 328,264

(IV) Foreign currency translation

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

Foreign currency transactions and balances

(1) Foreign currency transactions are translated into the functional currency using the spot exchange rate 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 recognized in profit or loss in the period in which they arise.

(2) Monetary assets and liabilities denominated in foreign currencies at the period end are re-translated using the spot exchange rate at the balance sheet date. Exchange differences arising from re-translation at the balance sheet date are recognized in profit or loss.

(3) Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated using spot exchange rate at the balance sheet date; their translation differences are recognized in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other

comprehensive income are re-translated using spot exchange at the balance sheet date. Their translation differences are recognized 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.

(4) All foreign exchange gains and losses are presented in the statement of comprehensive income within “Other gains and losses.”

2. Translation of foreign operations

(1) The operating results and financial position of all the subsidiaries that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

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

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

C. All resulting exchange differences are recognized in other comprehensive income.

(2) Goodwill and fair value adjustments arising from the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity, and are converted at the exchange rate at the end of the period.

(V) Classification of current and non-current items

Assets that meet one of the following criteria are classified as current assets:

(1) Assets arising from operating activities that are expected to be realized or are intended to be sold or consumed within the normal operating cycle.

(2) Assets held mainly for trading purposes.

(3) Assets that are expected to be realized within twelve months from the balance sheet date.

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

Those that do not meet the above criteria are considered non-current.

Liabilities that meet one of the following criteria are classified as current liabilities:

(1) Liabilities that are expected to be paid off within the normal operating cycle.

(2) Assets held mainly for trading purposes.

(3) Liabilities that are to be paid off within twelve months from the balance sheet date.

(4) Liabilities for which the repayment date cannot be extended unconditionally to more than twelve months after the balance sheet date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

Those that do not meet the above criteria are considered non-current.

(VI) Cash equivalents

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

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

Refer to the financial assets that are not measured at amortized cost, or are measured at fair value through other comprehensive gain or loss.
On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognized and derecognized using trade date accounting.
The Group measures financial assets at fair value in initial recognition. The related transaction costs are recognized in profit and loss. These financial assets are subsequently re-measured and stated at fair value, and any changes in the fair value of these financial assets are recognized in profit or loss.

(VIII) Financial assets measured at amortized cost

Refer to those that meet the following criteria at the same time:
(1) The objective of the business model is achieved by collecting contractual cash flows.
(2) The assets' contractual cash flows solely represent payments of principal and interest.
On a regular way purchase or sale basis, financial assets measured at amortized cost are recognized and derecognized using trade date accounting.
The Corporate Group measures financial assets at fair value plus transaction costs with the initial recognition. The financial assets are subsequently amortized by the effective interest rate during the circulation to recognize interest income and impairment loss. The profits or losses are recognized in the profit and loss when the assets are derecognized.
The Corporate Group holds time deposits that are not considered cash equivalents. Due to the short holding period, the impact of discounting is insignificant and is measured by the amount in investment.

(IX) Accounts and notes receivable

Refers to accounts and notes that have been unconditionally charged for the right to exchange the value of the consideration due to the transfer of goods or services.
The short-term accounts and notes receivable without bearing interest are subsequently measured at the initial invoice amount as the effect of discounting is immaterial.

(X) Impairment of financial assets

Regarding the financial assets measured at amortized cost, the Group considers all reasonable and supportable information (including forward-looking ones) and measure the loss allowance based on the 12-month expected credit losses for those that do not have their credit risk increased significantly since initial recognition. For those that have increased significantly since initial recognition, the loss allowance is measured based on the full lifetime expected credit losses. A loss allowance for full lifetime expected credit losses is also required for contract assets or trade receivables that do not constitute a financing transaction. For accounts receivables that do not include a significant financing component, the allowance for loss is measured by the amount of lifetime expected credit losses.

(XI) De-recognition of financial assets

A financial asset is de-recognized when the Group's rights to receive cash flows from the financial assets have expired.

(XII) Inventories

Inventories are measured at the lower of cost or net realizable value, and the cost is

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determined by weighted-average method. The cost of finished goods and work-in-progress comprises raw materials, direct labor, other direct costs and related production overheads, but excludes borrowing costs. At the end of year, inventories are evaluated at the lower of cost or net realizable value. The item by item approach is used in applying the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less applicable variable costs and estimated cost of completion and selling expenses.

(XIII) Property, plant and equipment

Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalized.
Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.
Land is not depreciated. Other property, plant and equipment apply the 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.
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each balance sheet date. 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:

Houses and buildings (including ancillary equipment)	2 years	to	55 years
Machinery and equipment	2 year	to	20 years
Transportation equipment	2 year	to	10 years
Office equipment	2 years	to	10 years
Other equipment	2 year	to	20 years

(XIV) Leasing agreements (lessee) - Right-of-use assets/lease liabilities

Leases are recognized as right-of-use assets and lease liabilities at the date at which the leased assets are available for the Group. For short-term leases or leases of low-value assets, lease payments are recognized as expenses on a straight-line basis over the lease term.
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 include fixed payments, less any lease incentives receivables, and variable lease payments that depend on an index or a rate. The Company subsequently measures the lease liability at amortized cost using the interest method and recognizes interest expense over the lease term. The lease liability is re-measured and the amount of re-measurement is recognized 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

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modifications.

At the commencement date, the right-of-use asset is recognized at cost, comprising the amount in initial measurement of the lease liability and 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 service life or the end of lease term. When the lease liability is re-measured, the amount of re-measurement is recognized as an adjustment to the right-of-use asset.

(XV) Intangible assets

Solely acquired concession is initially recorded at cost and is amortized over the quantity to be disposed of.
The concession obtained as a result of a business merger is recognized at the fair value on the acquisition date and amortized on a straight-line basis, with a period of amortization of 15 years.
Computer software is recognized at the cost of acquisition, and amortized based on the estimated useful life of 1 to 5 years based on the straight-line method.
Customer relationship is recognized at the cost on the date of acquisition, and amortized based on the straight-line method over its remaining useful life of 15 years.
Goodwill is measured in a business combination using the acquisition method.

(XVI) Impairment of non-financial assets

The Corporate Group assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognized 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. When the circumstances or reasons for recognizing 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 amortized historical cost would have been if the impairment had not been recognized.
Goodwill regularly estimates its recoverable amount. An impairment loss is recognized for the amount by which the asset's carrying amount exceeds its recoverable amount. The goodwill impairment loss will not be reversed in subsequent years.
Goodwill is allocated to cash-generating units for the purpose of conducting the impairment testing. The allocation is identified based on the operating segment, and the goodwill is allocated to cash-generation units or groups of cash-generation units expected to benefit from the business combination that generates goodwill.

(XVII) Borrowings

Refers to long- and short-term funds borrowed from banks. Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in profit or loss over the period of the borrowings using the effective interest method.

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(XVIII) Accounts and notes payable

Refers to debts incurred as a result of the purchase of raw materials, goods or services and the notes payable due to business and non-business purposes.
The short-term accounts and notes payable without bearing interest are subsequently measured at the initial invoice amount as the effect of discounting is immaterial.

(XIX) De-recognition of financial liabilities

The Group de-recognizes financial liabilities when the obligations specified in the contract are fulfilled, cancelled or expired.

(XX) Offsetting financial assets and liabilities

Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously.

(XXI) Provisions

Preparation cost for rehabilitation

The environmental impact of the physical properties of waste will naturally decrease over time after solidification and burying of waste. The cost for site rehabilitation is estimated based on the Company's experience. The quantity processed per month is multiplied by cost per ton to rehabilitate the site as the preparation for future rehabilitation.

Provisions for landfills

There is an obligation to properly bury the collected waste, and a liability provision is recognized for monthly tons processed multiplied by the estimated landfill cost per tons.

(XXII) Employee benefits

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 recognized as expenses in that period when the employees render service.

Pension

Defined contribution plans

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

Employees' bonuses and directors' remuneration

Employees' bonuses and directors' remuneration are recognized as expense and liability, 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 employee compensation is distributed by shares, the Group calculates the number of shares based on the closing price at the previous day of the

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board meeting resolution.

(XXIII) Employee share-based payments

The share-based payment agreement for delivery of equity is a transaction in which employees' labor service received as consideration for the Company's equity instrument at fair value, and it is recognized as compensation costs during the vesting period, and the equity is adjusted accordingly. The fair value of the equity instrument shall reflect the effects of vesting and non-vesting conditions of market value. The recognized remuneration costs are adjusted in accordance with the expected service conditions to be met and the non-vesting market value conditions, until the final recognized amount is recognized with the vesting amount on the vesting date.
The cash-settled share-based payment agreement is the fair value of the liabilities assumed recognized as remuneration costs and liabilities within the vesting period, and is measured at a fair value of the equity instrument on each balance sheet date and settlement date. Any changes in fair value are recognized in profit or loss for the period.

(XXIV) Income taxes

The tax expense for the period comprises current and deferred tax. Tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or items recognized directly in equity, in which cases the tax is recognized in other comprehensive income or equity.
The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.
Deferred income tax is recognized, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. However, the deferred income 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. Deferred income tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred income 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 income tax asset is realized or the deferred income tax liability is settled.
Deferred income tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. At each balance sheet date, unrecognized and recognized deferred income tax assets are reassessed.

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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 recognized amounts. There is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. Deferred income 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. The same taxation authority levies them on either the same entity or different entities that intend to settle on a net basis or realize the asset and settle the liability simultaneously.

(XXV) Capital

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

(XXVI) Dividend distribution

Dividends are recorded in the Company's financial statements in the period in which they are resolved by the Company's shareholders. Cash dividends are recorded as liabilities.

(XXVII) Revenue recognition

Sales of services

The Groups provides waste transportation and disposal and other related services. Sales of services is recognized as income during the financial reporting period in which the services are provided to customers. The revenue from fixed-price contracts is determined by multiplying the amount of waste actually processed by the unit price on the contract as of the balance sheet date. Customers pay the contract price in accordance with the payment schedule agreed upon. When the services already provided by the Group exceed the customers' payable, they will be considered as contract assets. If the customers' payable exceed the services already provided by the Group, they will be considered as contract liabilities.

Sales of plastic building materials

(1) The Group manufactures and sells plastic building materials. Sales revenue is recognized when the control of products is transferred to customers. The delivery of products occurs when products are shipped to a designated location and the risk of obsolescence and loss has been transferred to customers, and the customers accept the products in accordance with the sales contract or have objective evidence that all criteria have been met.

(2) Accounts receivable are recognized when the merchandise is delivered to the customer because the Group has unconditional rights to the contract price from that point onward and only requires the passage of time to receive the consideration from the customer.

(3) The Group provides warranty for products sold, and has the obligation to repair product defects, which are recognized as liability provisions when goods are sold.

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(XXVIII) Government subsidies

Government subsidies are recognized at fair value once it is reasonably convinced that the Company complies with the conditions for subsidies and will be receiving the subsidies. If the nature of the government subsidies is to compensate the expenses incurred by the Group, the government subsidies are recognized as current gains and losses on a systematic basis during the period in which the related expenses are incurred. Government subsidies related to related to property, plant and equipment are recognized as non-current liabilities and are recognized in profit or loss using the straight-line method to allocate their cost over their estimated useful lives.

(XXIX) Operating segments

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors that makes strategic decisions.

V. Critical Accounting Judgments and Key Sources of Estimation and Uncertainty

The preparation of these consolidated financial statements requires the management to make critical judgments in applying the Group’s accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. Such assumptions and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. 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. Please see the following explanation of critical accounting judgments and key sources of estimation and uncertainty:

(I) Assessment of goodwill impairment

The assessment process for goodwill impairment depends on the subjective judgment of the Group, which includes identifying cash-generating units, sharing assets and liabilities and goodwill with the relevant cash-generating units, and determining the recoverable amount of the relevant cash-generating units. For goodwill impairment assessment, please refer to the description in Note VI(VII).

As of December 31, 2025, the goodwill was $89,966 after the Group recognized the impairment loss.

(II) Realization of deferred tax assets

Deferred income tax assets are only recognized when it is highly likely that there will be sufficient taxable income in the future for the use of deductible temporary differences. When assessing the realizability of deferred income tax assets, significant accounting judgments and estimates of the management must be involved, including assumptions such as expected future revenue growth and profit margins, available income tax deductions, and tax planning. Any changes in the global economic environment, industry environment, and laws and regulations may cause major adjustments to deferred income tax assets.

As of December 31, 2025, the deferred income tax assets recognized by the Group was $64,456.

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VI. Statements of Major Accounting Items

(I) Cash and cash equivalents

	December 31, 2025	December 31, 2024
Cash on hand and working capital	$ 1,054	$ 1,286
Checking accounts and demand deposits	504,656	451,462
Time deposits	149,844	288,365
	$ 655,554	$ 741,113

The Group associates 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.
The Group pledged cash and cash equivalents of $7,835 and $3,195, for the years ended December 31, 2025 and 2024, respectively, to “Financial assets at amortized cost - Current” and amounts of $24,907 and $32,243 for the years ended December 31, 2025 and 2024, respectively to “Financial assets at amortized cost - Non-current,” based on their liquidity. Please see Note VI (III) and VIII for description.
The Group recognized time deposits of $158,759 and $187,969 with a maturity of more than three months for the years ended December 31, 2025 and 2024, respectively, in “Financial assets at amortized cost - Current,” and the amounts of $251 and $251 are recognized in “Financial assets at amortized cost - Non-current.” Please see Note VI(III) for description.

(II) Financial assets at fair value through profit or loss-current

Items	December 31, 2025	December 31, 2024
Current items:
Financial assets mandatorily measured at fair value through profit or loss
Beneficiary certificates	$ 165,000	$ 280,000
Valuation adjustment	2,804	440
	$ 167,804	$ 280,440

Financial assets at fair value through profit and loss is detailed as follows :

	2025	2024
Financial assets mandatorily measured at fair value through profit or loss
Beneficiary certificates	$ 3,451	$ 440

Please see Note XII (II) for the credit risk information related to financial assets at fair value through profit or loss.
The Group has no financial assets at fair value through profit or loss pledged to others.

(III) Financial assets measured at amortized cost

Items	December 31, 2025	December 31, 2024
Current items:
Time deposits with a maturity of more than three months	$ 158,759	$ 187,969
Pledged time deposits	7,835	3,195
	$ 166,594	$ 191,164
Non-current items:
Time deposits with a maturity of more than 1 year	$ 251	$ 251
Pledged time deposits	24,907	32,243
	$ 25,158	$ 32,494

Financial assets at amortized cost is recognized in the profit or loss shown as follows:

	2025	2024
Interests income	$ 2,639	$ 3,600

While not considering the collaterals or other credit enhancements, the financial assets at amortized cost held by the Group had the maximum exposure of credit risk at $191,752 and $223,658 as of December 31, 2025 and 2024, respectively.
Please see Note XII (II) for the credit risk information related to financial assets at amortized cost. The Group’s investment in time deposit certificates involves a transaction counterparty who is a financial institution with good credit quality, and the probability of default is expected to be low.
Please see Note VIII on how the Group provides financial assets at amortized cost as a pledged collateral.

(IV) Notes and accounts receivable

	December 31, 2025	December 31, 2024
Notes receivable	$ 23,601	$ 43,961
Less: Loss allowance	( 13)	( 14)
	$ 23,588	$ 43,947
Accounts receivable	$ 409,394	$ 608,667
Less: Loss allowance	( 70,005)	( 46,969)
Sub-total	339,389	561,698
Accounts receivable- related parties	1,349	810
Total	$ 340,738	$ 562,508

The Group held guarantee deposits received of $56,256 and $46,904 on December 31, 2025 and 2024, respectively, for accounts receivable, which are recognized under “Other current liabilities” and “Other non-current liabilities.”
Aging of notes and accounts receivable (Including related parties) are as follows:

	December 31, 2025		December 31, 2024
	Notes receivable	Accounts receivable	Notes receivable	Accounts receivable
Not past due	$ 23,601	$ 326,076	$ 43,961	$ 552,891
Past due
Up to 30 days	-	5,355	-	7,538
31-90 days	-	11,492	-	8,982
more than 91 days	-	67,820	-	40,066
	$ 23,601	$ 410,743	$ 43,961	$ 609,477

The above is an aging report based on the number of days past due.

As of December 31, 2025 and 2024, notes receivable and accounts receivable were from contracts with customers. The balances of notes receivable and accounts receivable as of January 1, 2024 were $28,979 and $545,232, respectively.
While not considering collaterals or other credit enhancements held, the notes receivable held by the Group had a maximum exposure of credit risk at $23,588 and $43,947, respectively, as of December 31, 2025 and 2024; the accounts receivable held by the Group had a maximum exposure of credit risk at and $340,738 and $562,508, respectively, as of December 31, 2025 and 2024.
Please see Note XII (II) for the information related to credit risk.

(V) Property, plant and equipment

	2025
	Land	Buildings	Machinery and equipment	Transportation equipment	Office equipment	Other equipment	Unfinished construction and equipment to be inspected	Total
January 1
Cost	$ 1,054,765	$ 3,462,910	$ 2,771,859	$ 529,977	$ 80,094	$ 1,317,568	$ 669,904	$ 9,887,077
Accumulated depreciation	-	( 690,155)	( 1,422,150)	( 306,691)	( 54,861)	( 619,949)	-	( 3,093,806)
	$ 1,054,765	$ 2,772,755	$ 1,349,709	$ 223,286	$ 25,233	$ 697,619	$ 669,904	$ 6,793,271
January 1	$ 1,054,765	$ 2,772,755	$ 1,349,709	$ 223,286	$ 25,233	$ 697,619	$ 669,904	$ 6,793,271
Additions	-	15,178	18,179	71,690	3,955	8,025	270,242	387,269
Disposals of cost	-	( 4,222)	( 41,374)	( 10,153)	( 3,364)	( 13,235)	-	( 72,348)
Disposal of accumulated depreciation	-	4,222	36,381	9,857	3,163	4,716	-	58,339
Re-classification	-	26,925	87,661	3,278	298	4,783	( 78,238)	44,707
Depreciation expense	-	( 167,265)	( 210,035)	( 56,612)	( 7,862)	( 159,683)	-	( 601,457)
Impairment loss		-	( 47,359)	-	-	-	-	( 47,359)
Capitalization of interest	-	-	-	-	-	-	24,585	24,585
Net exchange differences	-	3,469	2,247	( 86)	( 53)	( 133)	( 1,479)	3,965
December 31	$ 1,054,765	$ 2,651,062	$ 1,195,409	$ 241,260	$ 21,370	$ 542,092	$ 885,014	$ 6,590,972
December 31
Cost	$ 1,054,765	$ 3,506,217	$ 2,844,144	$ 595,197	$ 81,081	$ 1,317,546	$ 885,014	$ 10,283,964
Accumulated depreciation	-	( 855,155)	( 1,648,735)	( 353,937)	( 59,711)	( 775,454)	-	( 3,692,992)
	$ 1,054,765	$ 2,651,062	$ 1,195,409	$ 241,260	$ 21,370	$ 542,092	$ 885,014	$ 6,590,972

	2024
	Land	Buildings	Machinery and equipment	Transportation equipment	Office equipment	Other equipment	Unfinished construction and equipment to be inspected	Total
January 1
Cost	$1,058,526	$3,226,775	$2,699,366	$494,824	$77,192	$1,259,534	$562,218	$9,378,435
Accumulated depreciation	-	(510,406)	(1,245,977)	(263,994)	(46,672)	(511,447)	-	(2,578,496)
	$1,058,526	$2,716,369	$1,453,389	$230,830	$30,520	$748,087	$562,218	$6,799,939
January 1	$1,058,526	$2,716,369	$1,453,389	$230,830	$30,520	$748,087	$562,218	$6,799,939
Additions	-	16,942	15,499	45,557	2,871	21,995	310,403	413,267
Disposals of cost	(3,761)	(6,426)	(62,280)	(14,057)	(1,159)	(2,396)	(16,151)	(106,230)
Disposal of accumulated depreciation	-	5,784	54,114	13,088	1,035	1,438	-	75,459
Re-classification	-	155,460	70,772	786	-	35,699	(208,626)	54,091
Depreciation expense	-	(178,941)	(212,249)	(54,350)	(8,741)	(109,197)	-	(563,478)
Capitalization of interest	-	-	-	-	-	-	20,616	20,616
Net exchange differences	-	63,567	30,464	1,432	707	1,993	1,444	99,607
December 31	$1,054,765	$2,772,755	$1,349,709	$223,286	$25,233	$697,619	$669,904	$6,793,271
December 31
Cost	$1,054,765	$3,462,910	$2,771,859	$529,977	$80,094	$1,317,568	$669,904	$9,887,077
Accumulated depreciation	-	(690,155)	(1,422,150)	(306,691)	(54,861)	(619,949)	-	(3,093,806)
	$1,054,765	$2,772,755	$1,349,709	$223,286	$25,233	$697,619	$669,904	$6,793,271

Capitalization of borrowing costs of property, plant and equipment and interest rate range:

	2025	2024
Capitalized amount	$ 24,585	$ 20,616
Capitalized interest rate range	1.56%~2.03%	1.65%~2.01%

Information on property, plant and equipment pledged to others as collateral is provided in Note VIII.
Please refer to Note IV (XIII) for the depreciation method and service life of the Group's property, plant and equipment in 2025.
Please refer to Note VI (XXX) for the number of transfers from 2025 and 2024.
To meet operational development planning needs, the Company's subsidiary Ching Hsin, with Board resolution dated December 27, 2024, intended to sign a land and building lease contract and sales contract with a non-related party for land and buildings on Dougong 3rd Road, Douliu City, Yunlin County. The contracts were signed on March 3, 2025, with a total sales contract amount of $208,571 (pre-tax). As December 31, 2025, $9,932 had been prepaid for the land and building (recorded under "Other Non-current Assets"); the remaining payment will be made in accordance with the contract.
Please refer to Note VI (XXVIII) for the impairment of property, plant and equipment in 2025.

(VI) Leasing arrangements - lessee

The Group leases various assets such as land and houses. The lease contract periods usually cover 1 to 50 years. Lease contracts are negotiated individually and contain a variety of terms and conditions. Leased assets shall not be subleased, lend out, transferred or used by others in any ways and there are no other restrictions.
The lease periods of part of the land, houses leased and transportation equipment by the Group did not exceed 12 months and the leased assets were photocopier and dumpster of low value in 2025 and 2024.
Information of right-of-use assets:

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	2025
	Land - China	Land - Taiwan	Buildings	Machinery and equipment	Total
January 1
Cost	$399,126	$502,899	$12,394	$843	$915,262
Accumulated depreciation	(52,680)	(167,145)	(5,418)	(430)	(225,673)
	$346,446	$335,754	$6,976	$413	$689,589
January 1	$346,446	$335,754	$6,976	$413	$689,589
Additions- Add lease	-	-	6,686	648	7,334
Revaluation of lease liabilities	-	(21,466)	-	-	(21,466)
Depreciation expense	(8,408)	(26,216)	(4,736)	(474)	(39,834)
Net exchange differences	1,074	-	(20)	-	1,054
December 31	$339,112	$288,072	$8,906	$587	$636,677
December 31
Cost	$400,730	$481,432	$19,086	$1,491	$902,739
Accumulated depreciation	(61,618)	(193,360)	(10,180)	(904)	(266,062)
	$339,112	$288,072	$8,906	$587	$636,677
	2024
	Land - China	Land - Taiwan	Buildings	Machinery and equipment	Total
January 1
Cost	$385,667	$485,284	$15,214	$843	$887,008
Accumulated depreciation	(42,506)	(141,414)	(7,316)	(149)	(191,385)
	$343,161	$343,870	$7,898	$694	$695,623
January 1	$343,161	$343,870	$7,898	$694	$695,623
Additions- Add lease	-	-	2,679	-	2,679
Derecognize - Cost	-	-	(5,658)	-	(5,658)
Derecognize -Accumulated amortization	-	-	5,658	-	5,658
Revaluation of lease liabilities	-	17,615	-	-	17,615
Depreciation expense	(8,645)	(25,731)	(3,642)	(281)	(38,299)
Net exchange differences	11,930	-	41	-	11,971
December 31	$346,446	$335,754	$6,976	$413	$689,589
December 31
Cost	$399,126	$502,899	$12,394	$843	$915,262
Accumulated depreciation	(52,680)	(167,145)	(5,418)	(430)	(225,673)
	$346,446	$335,754	$6,976	$413	$689,589

The information on lease liabilities related to lease contracts is as follows:

	December 31, 2025	December 31, 2024
Total lease liabilities	$ 317,464	$ 361,254
Less: Mature within one year
(Listed as Lease liabilities - Current)	( 28,267)	( 27,336)
	$ 289,197	$ 333,918

The information on profit or loss items related to lease contracts is as follows:

	2025	2024
Items affecting current profit and loss
Interest expenses on lease liabilities	$ 6,765	$ 6,905
Expenses for short-term lease contracts	4,834	6,338
Lease of low-value assets	145	139

The Group's total cash outflow on leases for 2025 and 2024 was $41,380 and $40,851, respectively.
In January 2025 and 2024, the Group, in accordance with contracts, adjusted the right-of-use asset – land – Taiwan region and lease liabilities based on changes in announced land value. The revaluation adjustment amounts were $16,355 and $17,615, respectively.
The Group completed the reclamation of the four landfill sites in October 2025 and was exempted from future rent for the sites. Therefore, the right-of-use assets – land and lease liabilities were adjusted according to the land lease agreement, with a re-evaluated decrease of $37,821.

(VII) Intangible assets

	2025
	Goodwill	Concession	Customer relationship	Computer software	Total
January 1
Cost	$ 171,028	$ 967,878	$ 85,856	$ 20,826	$ 1,245,588
Accumulated amortization	-	( 475,938)	( 17,171)	( 5,312)	( 498,421)
Accumulated impairment	( 81,422)	-	-	-	( 81,422)
	$ 89,606	$ 491,940	$ 68,685	$ 15,514	$ 665,745
January 1	$ 89,606	$ 491,940	$ 68,685	$ 15,514	$ 665,745
Additions	-	-	-	2,008	2,008
Derecognize - Cost	-	-	-	( 1,176)	( 1,176)
Derecognize -Accumulated amortization	-	-	-	1,176	1,176
Amortization expense	-	( 78,901)	( 5,724)	( 3,452)	( 88,077)
Net exchange differences	360	250	-	8	618
December 31	$ 89,966	$ 413,289	$ 62,961	$ 14,078	$ 580,294

	2025
	Goodwill	Concession	Customer relationship	Computer software	Total
December 31
Cost	$ 172,156	$ 967,878	$ 85,856	$ 21,716	$ 1,247,606
Accumulated amortization	-	( 554,589)	( 22,895)	( 7,638)	( 585,122)
Accumulated impairment	( 82,190)	-	-	-	( 82,190)
	$ 89,966	$ 413,289	$ 62,961	$ 14,078	$ 580,294
	2024
	Goodwill	Concession	Customer relationship	Computer software	Total
January 1
Cost	$ 165,685	$ 967,878	$ 85,856	$ 20,194	$ 1,239,613
Accumulated amortization	-	( 420,106)	( 11,447)	( 3,491)	( 435,044)
	$ 165,685	$ 547,772	$ 74,409	$ 16,703	$ 804,569
January 1	$ 165,685	$ 547,772	$ 74,409	$ 16,703	$ 804,569
Additions	-	-	-	1,700	1,700
Derecognize - Cost	-	-	-	( 1,559)	( 1,559)
Derecognize -Accumulated amortization	-	-	-	1,559	1,559
Amortization expense	-	( 68,617)	( 5,724)	( 3,359)	( 77,700)
Impairment loss	( 81,422)	-	-	-	( 81,422)
Net exchange differences	5,343	12,785	-	470	18,598
December 31	$ 89,606	$ 491,940	$ 68,685	$ 15,514	$ 665,745
December 31
Cost	$ 171,028	$ 967,878	$ 85,856	$ 20,826	$ 1,245,588
Accumulated amortization	-	( 475,938)	( 17,171)	( 5,312)	( 498,421)
Accumulated impairment	( 81,422)	-	-	-	( 81,422)
	$ 89,606	$ 491,940	$ 68,685	$ 15,514	$ 665,745

Breakdown of intangible assets amortization:

	2025	2024
Operating costs	$ 85,210	$ 74,894
Operating expenses	2,867	2,806
	$ 88,077	$ 77,700

The Company participated in the public bidding for RSEA Engineering Corporation in October 2012 and acquired all the plants, machinery, other equipment and concessions of the company in Changhua Coastal Industrial Park for $1,116,392. The concession enabled the Company to conduct disposal of general business waste and hazardous business waste

based on approval document #10120426390 issued by the Ministry of Economic Affairs. The Company recognized the fair value of plant, machinery and other equipment at $617,976 as the acquisition cost. The fair value of concession is $498,416 and the amortization adopts production quantity method.

The Group acquired 90% of Rizhao Panyue's equity in December 2020. The fair value of the concession identified of the intangible asset after evaluation analysis based on the purchase price allocation report was RMB 107,257 thousand (equivalent to NT$469,479 thousand) and the concession is amortized by using the straight-line method based on the service life.
In order to expand the scale of operation, the Group signed a contract with two waste removal and transportation companies in January 2022 to obtain the list of their customers. The total contract price is $90,257, and the Group will make the monthly installment over 5 to 9 years. The total contract price is $85,856 at the present value of discounted effective interest, and the customer relationship is amortized based on the straight-line method over its remaining useful life of 15 years.
Goodwill is allocated to the Group's cash-generating units identified by operating segments:

	December 31, 2025	December 31, 2024
Subsidiary in China - Rizhao Panyue	$ 89,966	$ 89,606

The impairment test of the Group's goodwill is carried out by allocating goodwill to the Group's cash-generating units and calculating the recoverable amount based on the value in use. The value in use is estimated based on the cash flows of the five-year financial budget already prepared by management. Cash flows beyond the five-year period are extrapolated using the estimated growth rates stated below. The main assumptions used in the calculation of value in use are as follows:

	2025	2024
Discount rate	9.10%	9.53%
Growth	2.00%	2.00%

The discount rate reflects the expected risks of the estimated operating income and assets, and is determined by the weighted average cost of capital. The growth rate is calculated based on the growth rate forecast of the relevant industry and shall not exceed the average long-term growth rate of the relevant industry. Other key assumptions in the calculation of value in use relate to the estimation of cash inflows and outflows, including budgeted sales and gross margins, which are determined by management based on experience and its expectations of market developments. As the business growth of the cash-generating units was below expectation, the recoverable amount for the Group was assessed to be less than the carrying amount in 2024. Therefore, a goodwill impairment loss of $81,422 was recognized in 2024.

(VIII) Impairment of non-financial assets

Due to poor performance of the Chin Hsin Plastic Wood segment in 2025, the Group, after assessment, adjusted the book value of the machinery and equipment of the aforementioned segment based on the recoverable amount and recognized an impairment loss of $47,359. The recoverable amount is determined with reference to the fair value of the asset as indicated in the appraisal report.

(IX) Other non-current assets

	December 31, 2025	December 31, 2024
Refundable deposit	$ 122,814	$ 110,022
Pre-payments for equipment	17,406	39,613
Prepayments for land	9,932	-
Others	98,398	119,962
	$ 248,550	$ 269,597

(X) Short-term debts

Type of borrowings	December 31, 2025	Range of interest rate	Collateral
Bank borrowings
Secured borrowings	$ 39,000	1.90%	Land, property, plant and equipment
Credit loan	9,116	1.90%~3.50%	None
	$ 48,116
Type of borrowings	December 31, 2024	Range of interest rate	Collateral
Bank borrowings
Secured borrowings	$ 40,000	1.90%	Land, property, plant and equipment
Credit loan	3,448	1.90%~3.60%	None
	$ 43,448

Please see Note VIII for the collaterals provided by the Company for the borrowings.

(XI) Other payables

	December 31, 2025	December 31, 2024
Payroll and bonus payable	$ 164,386	$ 143,685
Payable on equipment	105,279	65,915
Employees' bonuses and directors' remuneration payable	88,974	72,185
Commission payable	30,053	30,694
Others	136,115	167,373
	$ 524,807	$ 479,852

(XII) Long-term borrowings

	December 31, 2025	December 31, 2024
Secured borrowings	$ 306,500	$ 330,500
Credit loan	2,200,000	2,750,000
	2,506,500	3,080,500
Less: Long-term borrowings maturing within one year(listed in “Long-term liabilities - Due within one year”)	( 24,000)	( 99,000)
	$ 2,482,500	$ 2,981,500
Range of interest rate	1.85%~1.94%	1.85%~2.08%

The Group signed a new credit agreement with Chang Hwa Bank on July 27, 2023. The loan period is from August 1, 2023 to September 29, 2026. The aforementioned loan was repaid in August 2025.

In addition, on August 29, 2025, the Company entered into a new credit facility agreement with Chang Hwa Bank, with a credit period from August 29, 2025 to August 29, 2028, with a total credit limit of $300,000. As of December 31, 2025, the facility has been fully utilized. Ratification topics are as follows:

The Company should maintain a total average balance of demand deposits of more than $8,000 every three months. The balance is reviewed every three months after the loan. If the balance is not achieved, an additional 0.39% will be added to the interest rate originally approved.

The Group entered into a credit agreement with First Commercial Bank of Taiwan on October 21, 2024. The credit period was from October 18, 2024 to October 18, 2026. The loan was repaid in October and December 2025.

On August 22, 2025, a new credit agreement was signed with First Commercial Bank. The credit period was from August 22, 2025 to August 22, 2027, and the total credit amount was $1,100,000, of which $850,000 had been drawn as of December 31. Ratification topics are as follows:

The Company and its subsidiaries Chin Hsin, Liang Wei and Cheng Shin, should maintain a total average balance of demand deposits of more than $60,000 every nine months. The balance is reviewed every half a year after the loan. If the balance is not achieved, an additional 0.05% will be added to the interest rate originally approved.

Please see Note VIII for the collaterals provided by the Company for the long-term borrowings.

(XIII) Pensions

The Company and its domestic subsidiaries have established a defined contribution pension plan (hereinafter referred to as the "New Plan") under the Labor Pension Act (hereinafter referred to as the "Act"), covering all regular employees with domestic citizenship. Under the New Plan, the Company and its domestic subsidiaries contribute monthly based on 6% of the employees' monthly salaries and wages to the employees' individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in a lump sum upon the termination of employment.
Beijing Ruentex, Suqian Ruentex, Langfang Ruentex, Yuncheng Ruentex and Rizhao Panyue adopted a defined contribution plan to allocate monthly contributions to an

independent fund administered by the government in accordance with the pension regulations in the People's Republic of China (PRC). They are based on a certain percentage of employees' monthly salaries and wages. The contribution percentage for the years ended December 31, 2025 and 2024 was between 16%. Other than the monthly contributions, the Group has no further obligations.

For 2025 and 2024, the pension costs recognized by the Corporate Group in accordance with the abovementioned pension measures were $53,661 and $54,641, respectively.

(XIV) Provisions - Non-current

	2025		2024
Balance on January 1	$	68,710	$	73,379
Provision added this period		16,692		10,549
Realized for the period	(	9,833)	(	15,218)
Balance on December 31	$	75,569	$	68,710
The analysis of provisions is as follows:
	December 31, 2025		December 31, 2024
Current	$	10,873	$	20,707
Non-current	$	64,696	$	48,003

The provision recognized by the Group is in accordance with the officially announced policies and the applicable contracts or regulatory requirements and is detailed below:

The Group is obliged to rehabilitate the landfill location of waste treatment plants of the Changhua Coastal Industrial Park, Wenxi Economic and Technological Development Zone of Yuncheng in Shanxi and Siyang Economic Development Zone in Jiangsu; the latter two are provincial development zones. Therefore, the present value of the cost expected to rehabilitate the location is recognized as a provision. For 2025 and 2024, the costs recognized by the Group were $16,692 and $10,549, respectively.

(XV) Other non-current liabilities

	December 31, 2025	December 31, 2024
Deferred revenue:
Beijing Ruentex	$ 19,498	$ 22,130
Yuncheng Ruentex	51,266	58,188
Sub-total	70,764	80,318
Long-term accounts payable:
Long-term accounts payable	26,223	41,006
Long-term liabilities due within one year	( 14,463)	( 14,227)
Unrealized interest expense	( 671)	( 1,228)
Sub-total	11,089	25,551
Guarantee deposit received	7,360	5,119
Total	$ 89,213	$ 110,988

~47~

Deferred revenue

(1) Beijing Ruentex, a subsidiary of the Company, originally established a medical waste disposal plant in Beijing Yongle Economy Development Zone. In accordance with the overall urban planning and environmental considerations of the Beijing Municipal Government, the subsidiary was requested to move to Sanfa Tsun East area of Tongzhou District in 2010. The part of the compensation payment exceeding the fair value of the land and plant is the subsidy from the Beijing government to have Beijing Ruentex continue the same operations in Tongzhou District. The total is RMB 12,102,000 (approximately NT$ 58,757,000), which can be deferred, and it has been amortized for 20 years starting 2013. As for December 31, 2025, a total of RMB 7,766,000 (approximately NT$ 33,650,000) has been amortized.

(2) The Company's subsidiary Yuncheng Ruentex signed an investment agreement with Wenxi Economic and Technological Development Zone Management Committee in 2019. According to the support policies for industrial enterprises, Yuncheng Ruentex's investment in the conversion and disposal of local industrial solid wastes exceeding USD35,000,000 was eligible for investment grant upon approval. Yuncheng Ruentex received the grant of RMB 15,911,000 (approximately NT $69,117,000) in February 2021, which will be amortized evenly over 10 years from the date of operation of main operating equipment. As for December 31, 2025, a total of RMB 4,508,000 (approximately $ NT19,533,000) has been amortized.

Long-term accounts payable

In order to expand the scale of operation, the Group signed a contract with two waste removal and transportation companies in January 2022 to obtain the list of their customers. The Group will make the monthly installment over 5 to 9 years. Please refer to Note VI (VII) for detailed explanations.

(XVI) Share-based payment

The Company's share-based payment in 2024 is agreed upon as follows:

The Group's subsidiary, Chin Hsin, issued 6,000 thousand new shares through a cash capital increase approved by the board on March 28, 2024. It retained 15% of the shares to be subscribed by employees of controlled or affiliated companies meeting certain criteria. Therefore, 900 thousand shares were allocated to the Group's employees, and the subscription price was $45 per share. The share-based payment is agreed as follows:

Type of arrangement	Grant date	Total quantity granted (shares)	Contract period	Vesting conditions
Cash capital increase reserved for employee subscription	2024.06.14	900,000	None	Immediate vesting

All of the above share-based payment arrangements are settled in equity.

The detailed information of the above share-based payment is as follows:

	2024
	Number of options (shares)	Weighted average exercise price (NT$)
Options outstanding as of January 1	-	$ -
Share options granted this period	900,000	45
Share options exercised this period	( 733,000)	45
Share options foregone this period	( 167,000)	45
Options outstanding as of December 31	-	-
Options exercisable as of December 31	-	-

The share-based payment transactions use the Active open market quotes, and consider the liquidity discount to calculate the fair value per share. Then the Black-Scholes option evaluation model is applied to estimate the fair value of the stock option. The relevant information is shown as follows:

Type of arrangement	Grant date	Net worth per share (NT$)	Exercise price (NT$)	Expected volatility	Expected duration	Expected dividend	Risk-free rate	Fair value per unit (NT$)
Cash capital increase reserved for employee subscription	2024.06.14	$53.3	$45	26.56%	0.02year	-	1.30%	$8.3

For 2024, the expenses recognized by the Group for share-based payments were $7,470.

(XVII) Capital

As of December 31, 2025, the Company's authorized capital was $1,500,000, consisting of 130,000 thousand shares of ordinary stock, and the paid-in capital was $1,300,000 with a par value of $10 (in dollars) per share. All proceeds from shares issued have been collected.
The number of outstanding common stock at the beginning and the end of the period is as follows:

	2025	2024
January 1/ December 31	130,000 thousand shares	130,000 thousand shares

(XVIII) Capital surplus

In accordance with the Company Act, any capital surplus arising from paid-in capital in excess of the 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. In addition, the Securities and Exchange Act requires that the amount in capital surplus to be capitalized should not exceed 10% of paid-in capital each year. Capital surpluses should not be used to cover accumulated deficit unless the legal reserve is insufficient.

Changes in capital surpluses:

	2025
	Additional paid-in capital	Fair value of the consideration paid or received from acquiring or disposing of subsidiaries and the carrying amounts of the subsidiaries	Changes in ownership interests in subsidiaries recognized	Employee share option	Others - Unclaimed dividends of shareholders	Total
January 1 / December 31	$ 2,397,186	$ 52,690	$ 137,835	$ -	$ 716	$ 2,588,427
	2024
---	---	---	---	---	---	---
	Additional paid-in capital	Fair value of the consideration paid or received from acquiring or disposing of subsidiaries and the carrying amounts of the subsidiaries	Changes in ownership interests in subsidiaries recognized	Employee share option	Others - Unclaimed dividends of shareholders	Total
January 1	$ 2,523,451	$ 23,863	$ 10,790	$ -	$ 716	$ 2,558,820
Distribution of cash from capital surplus	( 130,000)	-	-	-	-	( 130,000)
Changes in shareholders' equity of subsidiaries not recognized according to shareholding ratio	-	-	127,045	-	-	127,045
Cash capital increase reserved for employee subscription	-	-	-	3,735	-	3,735
Exercise of employee stock options	3,735	-	-	( 3,735)	-	-
Changes in non-controlling interest	-	28,827	-	-	-	28,827
December 31	$ 2,397,186	$ 52,690	$ 137,835	$ -	$ 716	$ 2,588,427

(XIX) Retained earnings

In accordance with the Company’s Articles of Incorporation, the current year’s earnings, if any, shall first be used to offset prior years’ operating losses and pay all taxes. Then 10% of the remaining amount shall be set aside as legal reserve until the legal reserve equals the paid-in capital. The Company shall set aside or reverse special reserve in accordance with the related laws or competent authority. The appropriation of the remaining earnings, along with the beginning unappropriated earnings, shall be proposed by the Board of Directors and resolved by the shareholders as dividends to shareholders.
Pursuant to Article 240 of The Company Act, the Company may authorize the board of directors to distribute dividends, profit-sharing, legal reserve and capital reserve (subject to compliance with Article 241 of The Company Act) wholly or partially in cash. Such decisions must be approved in a board meeting with at least two-thirds of directors present and supported by more than half of attending directors, and reported during a shareholder meeting afterwards.
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 the legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted. The distribution of the reserve is limited to the portion in excess of 25% of the Company’s paid-in capital.
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 the debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.
The Company distributed dividends in the amount of $494,000 in cash per the board resolution at the meeting held on February 27, 2025; on May 27, 2025, the shareholder meeting reaching the threshold for electronic voting resolved to approve the 2024 earning distribution. Details are summarized below:

	2024
	Amount	Dividends per share (in dollars)
Provisions for legal reserve	$ 48,020	$ -
Reversal Provisions for special reserve	( 89,777)	-
Cash dividends	494,000	3.80
Total	$ 452,243

6.(1) The Company distributed dividends in the amount of $364,000 in cash per the board resolution at the meeting held on February 23, 2024; on May 24, 2024, the shareholder meeting reaching the threshold for electronic voting resolved to approve the 2023 earning distribution. Details are summarized below:

	2023
	Amount	Dividends per share (in dollars)
Provisions for legal reserve	$ 40,856	$ -
Provisions for special reserve	49,713	-
Cash dividends	364,000	2.80
Total	$ 454,569

(2) As proposed by the Board of Directors on February 23, 2024, the Company distributed cash dividend of NT$1 per share based on capital surplus – issue premium, totaling $130,000. This was reported at the shareholders' meeting on May 24, 2024.

The distribution of 2025 earnings was approved by the board on March 5, 2026. Details are summarized below:

	2025
	Amount	Dividends per share (in dollars)
Provisions for legal reserve	$ 58,286	$ .
Provisions for special reserve	15,368	.
Cash dividends	520,000	4.00
Total	$ 593,654

(XX) Operating revenue

	2025	2024
Revenue from contracts with customers	$ 3,990,550	$ 3,696,692

Segmentation of revenue from contracts with customers

The Group's revenue can be divided into the following major categories and geographical areas by service and product:

	Taiwan			China			total
	Waste transportation	Waste disposal	other	Waste transportation	Waste disposal	other
2025 Segment revenue	$ 1,168,387	$ 2,306,520	$ 71,645	$ 100,011	$ 673,974	$ 9,607	$ 4,330,144
Revenue from internal transactions	( 315,369)	( 10,484)	( 13,741)	-	-	-	( 339,594)
Revenue from contracts with external customers	$ 853,018	$ 2,296,036	$ 57,904	$ 100,011	$ 673,974	$ 9,607	$ 3,990,550
Revenue recognition timing
Revenue recognized at a specific point in time	$ -	$ -	$ 11,177	$ -	$ -	$ -	$ 11,177
Revenue recognized progressively over time	$ 853,018	$ 2,296,036	$ 46,727	$ 100,011	$ 673,974	$ 9,607	$ 3,979,373
	$ 853,018	$ 2,296,036	$ 57,904	$ 100,011	$ 673,974	$ 9,607	$ 3,990,550

-52-

	Taiwan			China			total
	Waste transportation	Waste disposal	other	Waste transportation	Waste disposal	other
2024 Segment revenue	$ 675,892	$ 2,264,184	$ 35,554	$ 128,762	$ 816,858	$ 389	$ 3,921,639
Revenue from internal transactions	( 210,640)	( 1,439)	( 12,868)	-	-	-	( 224,947)
Revenue from contracts with external customers	$ 465,252	$ 2,262,745	$ 22,686	$ 128,762	$ 816,858	$ 389	$ 3,696,692
Revenue recognition timing
Revenue recognized at a specific point in time	$ -	$ -	$ 19,466	$ -	$ -	$ -	$ 19,466
Revenue recognized progressively over time	$ 465,252	$ 2,262,745	$ 3,220	$ 128,762	$ 816,858	$ 389	$ 3,677,226
	$ 465,252	$ 2,262,745	$ 22,686	$ 128,762	$ 816,858	$ 389	$ 3,696,692

2. Contract assets and contract liabilities

(1) As of December 31, 2025, December 31, 2024 and January 1, 2024, the Group has not recognized contract assets related to revenue from contracts with customers. The Group has recognized the following contract liabilities:

	December 31, 2025	December 31, 2024	January 1, 2024
Contract assets-current	$ 312,266	$ -	$ -
Contract liabilities-current	$ 169,703	$ 222,000	$ 151,090
Contract liabilities-non current	3,705	4,675	13,757
	$ 173,408	$ 226,675	$ 164,847

(2) Contract liabilities at the beginning of the period recognized as revenue of the period

	2025	2024
Opening balance of contract liabilities
Recognized as revenue this period	$ 213,485	$ 151,090

Please see Note XII (II) for the information related to credit risk.
The Group has recognized the revenue from bills that have the waste quantity, commissioned by clients to conduct disposal, multiplied by the contract unit price. Due to the expedient measures taken, there is no need to disclose the remaining contract performance obligations.

(XXI) Interests income

	2025	2024
Interest from bank deposits	$ 4,505	$ 6,925
Interest income from financial assets measured at amortized cost	2,639	3,600
Total	$ 7,144	$ 10,525

(XXII) Other income

	2025	2024
Revenue from government subsidies	$ 10,367	$ 14,606
Revenue from sales of scraps	2,886	2,731
Other income - Others	7,315	21,702
Total	$ 20,568	$ 39,039

(XXIII) Other benefits and losses

	2025	2024
Net gain on foreign currency exchange	$ 22,072	$ 56,166
Loss on disposal of property, plant and equipment	( 575)	( 13,117)
Gain on valuation of financial assets at fair value through profit or loss	3,451	440
Loss from the disposal of subsidiaries	( 2,066)	-
Goodwill impairs loss (Note2)	-	( 81,422)
Impairment on property, plant and equipment (Note 1)	( 47,359)	-
Other losses	( 4,002)	( 9,294)
Total	($ 28,479)	($ 47,227)

Note1: For details on impairment on property, plant and equipment, please refer to Note VI (V).
Note2: For relevant explanations on goodwill impairment losses, please refer to Note VI(VII).

-54-

(XXIV) Financial cost

	2025	2024
Interest expenses:
Bank borrowings	$ 53,657	$ 61,428
Interest expenses on lease liabilities	6,765	6,905
Long-term accounts payable interest expense	556	804
Less: amount of capitalization of assets that meet the requirements	( 24,585)	( 20,616)
Financial cost	$ 36,393	$ 48,521

(XXV) Expenses by nature

	2025	2024
Employee benefits expenditure	$ 1,023,882	$ 965,543
Depreciation charges on property, plant and equipment	601,457	563,478
Consumables	240,115	263,646
Disposal expense	206,843	159,996
Repairs expense	203,144	180,594
Water, electricity and gas utilities	159,002	152,432
Amortization expense	88,077	77,700
Service charge	77,528	74,363
Commission expenses	62,459	95,160
Expected loss on credit impairment	20,640	42,384
Depreciation expenses for right-of-use assets	39,834	38,299
Change in inventory	3,879	5,398
Other expenses	315,742	360,243
Operating costs and operating expenses	$ 3,042,602	$ 2,979,236

(XXVI) Employee benefits expenditure

	2025	2024
Payroll expenses	$ 812,773	$ 753,066
Employee stock option compensation expense	-	7,470
Labor and health insurance fees	71,036	67,373
Pension costs	53,661	54,641
Directors' remuneration	19,902	16,609
Other personnel expenses	66,510	66,384
	$ 1,023,882	$ 965,543

According to the Articles of Incorporation of the Company, a portion of the distributable profit of the current year, after covering accumulated losses, shall be allocated as employees' compensation and directors' and supervisors' remuneration. Employees' compensation shall be 7% of the distributable profit, and directors' remuneration shall not exceed 1.4%. On May 27, 2025, the shareholders' meeting resolved to amend the Articles of Incorporation, stipulating that at least 30% of the employee bonus allocation shall be distributed to entry-level employees. The aforementioned employee compensation may be distributed in the form of shares or cash, and recipients may include employees of subsidiaries who meet certain criteria.
For years ended December 31, 2025 and 2024, employee compensation was estimated to be $55,563 and $44,187, respectively, and remunerations for directors for the two years were estimated to be $10,041 and $7,985, respectively. The abovementioned remunerations for directors are recognized as directors' remunerations under the employee benefit expenses.

The employees' remuneration and directors' remuneration were estimated and accrued based on 7% and 1.265% for 2025, based on the profit status as of the current period. The estimate amount is consistent to the amount resolved by the Board, and the aforementioned employee remuneration will be distributed in cash.

The employee compensation and directors' remuneration resolved by the Board of Directors for 2024 were $44,187 and $7,985, respectively, consistent with the amount recognized in the 2024 financial report. The employee compensation and directors' remuneration were distributed in the form of cash in June 2025, respectively.

Information about employees' compensation and directors' remuneration of the Company as resolved by the Board of Directors and shareholders will be posted in the "Market Observation Post System" at the website of the Taiwan Stock Exchange.

(XXVII) Income taxes

Income tax expense

Components of income tax expense:

	2025	2024
Current tax:
Current tax on profits for the year	$ 276,416	$ 217,211
Land value increment tax	66	187
Additional tax on undistributed earnings	1,398	-
(Over)under the provision of prior year's income tax	(1,214)	6,905
Total current tax	276,666	224,303
Deferred income tax:
Origination and reversal of temporary differences	(71,693)	(61,699)
Tax loss	17,462	(49,485)
Total deferred income tax	(54,231)	(111,184)
Income tax expense	$ 222,435	$ 113,119

Reconciliation between income tax expense and accounting profit

	2025	2024
Tax calculated based on profit before tax and statutory tax rate (Note)	$ 116,616	$ 77,885
Changes in assessment of realizability of deferred income tax assets	17,462	( 40,213)
Tax-exempt income under the tax laws	( 17,972)	( 16,796)
Fees excluded according to the tax laws	68,772	60,421
Tax losses of unrecognized deferred income tax assets	49,273	35,481
(Over) under provision of prior year's income tax	( 1,214)	6,905
Effects on income tax from tax law statutory adjustments	( 11,966)	( 10,751)
Land value increment tax	66	187
Additional tax on undistributed earnings	1,398	-
Income tax expense	$ 222,435	$ 113,119

Note: The basis for applicable tax rate is calculated at the rate applicable to the Company and the subsidiaries.

Amounts of deferred tax assets or liabilities as a result of temporary differences, tax losses and investment tax credits are as follows:

	2025
	January 1	Recognized in profit or loss	Exchange differences	December 31
Temporary differences: - Deferred income tax assets:
Preparation cost for rehabilitation	$ 5,216	$ 637	$ -	$ 5,853
Allowance for inventory valuation losses	789	1,655	-	2,444
Estimated unrealized expenses	378	1,660	-	2,038
Deferred revenue	14,546	( 1,725)	( 5)	12,816
Impairment on assets	-	9,472	-	9,472
Tax loss	49,752	( 17,462)	( 457)	31,833
Sub-total	70,681	( 5,763)	( 462)	64,456

	2025
	January 1	Recognized in profit or loss	Exchange differences	December 31
- Deferred income tax liabilities:
Investment in foreign companies	(54,689)	51,327	-	(3,362)
Amortization expense	(88,054)	7,745	(62)	(80,371)
Depreciation expense	(2,845)	921	24	(1,900)
Unrealized gain on exchange	(165)	1	-	(164)
Sub-total	(145,753)	59,994	(38)	(85,797)
Total	($75,072)	$54,231	($500	($21,341)
	2024
	January 1	Recognized in profit or loss	Exchange differences	December 31
Temporary differences:
- Deferred income tax assets:
Preparation cost for rehabilitation	$7,185	($1,969)	$-	$5,216
Allowance for inventory valuation losses	762	27	-	789
Unrealized exchange losses	498	(120)	-	378
Deferred revenue	15,777	(1,772)	541	14,546
Tax loss	-	49,485	267	49,752
Sub-total	24,222	45,651	808	70,681
- Deferred income tax liabilities:
Investment in foreign companies	(111,463)	56,774	-	(54,689)
Amortization expense	(92,820)	7,962	(3,196)	(88,054)
Depreciation expense	(3,667)	947	(125)	(2,845)
Unrealized gain on exchange	(15)	(150)	-	(165)
Sub-total	(207,965)	65,533	(3,321)	(145,753)
Total	($183,743)	$111,184	($2,513)	($75,072)

The effective period of the unused tax losses and unrecognized deferred income tax assets of the Group are as follows:

December 31, 2025
Year of occurrence	Filed/Approved	Non deductibles amount	Unrecognized deferred income tax asset	Final year of deduction
2018	$ 1,798	$ 1,798	$ -	2028(Note2)
2020	81,751	81,751	81,751	2025(Note1)
				2026 - 2031
2021	101,765	101,765	99,954	(Note1 - 2)
				2027 - 2032
2022	311,067	311,067	288,590	(Note1 - 2)
				2028 - 2033
2023	214,897	214,897	193,127	(Note1 - 2 - 3)
				2029 - 2034
2024	182,274	182,274	153,197	(Note1 - 2 - 3)
				2030 - 2035
2025	245,100	245,100	245,100	(Note1 - 2 - 3)
December 31, 2024
---	---	---	---	---
Year of occurrence	Filed/Approved	Non deductibles amount	Unrecognized deferred income tax asset	Final year of deduction
2018	$ 1,798	$ 1,798	$ -	2028(Note2)
2020	84,033	84,033	84,033	2025(Note1)
				2026 - 2031
2021	104,607	104,607	102,745	(Note1 - 2)
				2017 - 2032
2022	316,261	316,261	125,089	(Note1 - 2)
				2028 - 2033
2023	249,491	249,491	169,327	(Note1 - 2 - 3)
				2029 - 2034
2024	179,516	179,516	138,025	(Note1 - 2 - 3)

Note 1: In accordance with the Enterprise Income Tax Law of the People's Republic of China, the useful life of loss credits of the subsidiaries in China – Rizhao Panyue and Yuncheng Ruentex is 5 years.

Note 2: The subsidiary Suqian Ruentex in China has obtained the qualification of a technology-based small and medium-sized enterprise in 2023 in accordance with the Enterprise Income Tax Law of the People's Republic of China. Enterprises with the above qualification can have a useful life of loss credits for ten years in the first five years after obtaining the qualification. Starting 2023, the useful life of loss credits is five years

Note 3: According to the profit-seeking enterprise income tax regulations of the ROC, the useful life of loss credits of the subsidiary in Taiwan-Huan Shin is 10 years.

Beijing Ruentex is an enterprise established in the People's Republic of China. According to the relevant provisions of the Enterprise Income Tax Law of the People's Republic of China, companies that engage in environmental protection, energy-saving and water conservation businesses are eligible for income tax reductions. Beijing Ruentex phase 2 plant has met the abovementioned requirements for income tax reduction due to the equipment it uses, and has started using the

abovementioned income tax deduction in 2020.

Rizhao Panyue and Yuncheng Ruentex are an enterprise established in the People's Republic of China. According to the local regulations, it is exempted from income tax from its first to third year of operation and is subject to paying half of the income tax from the fourth to sixth year. Rizhao Panyue has started using the abovementioned income tax deduction in 2019. Yuncheng Ruentex has started using the abovementioned income tax deduction in 2022.
The Company's income tax returns through 2023 have been assessed and approved by the tax authority.

(XXVIII) Non-controlling Interests

Non-controlling Interests shown as follows:

	2025		2024
January 1	$	458,505	$	258,968
Net income for the period		105,488		77,950
Translation of foreign operations		-		1,209
Decrease in cash dividends received	(	74,422)	(	31,923)
Purchase of equity interests in subsidiaries		-	(	33,918)
Cash capital increase in subsidiary		-		182,484
Share-based payment		-		3,735
December 31	$	489,571	$	458,505

The Group did not subscribe to the shares in the subsidiary's cash capital increase in proportion to the shareholding percentage.

The board resolution approved the Group's subsidiary Chin Hsin on March 28, 2024 to conduct a cash capital increase to issue new shares, with June 14, 2024 being the record date of capital increase. The Group did not subscribe to the new shares in proportion to the shareholding percentage, which reduced the comprehensive shareholding in Chin Hsin from 66.04% to 57.42%. The transaction increased non-controlling interest of $182,484, and equity attributable to owners of the parent has increased by $127,045.

	2024
Cash	$ 309,529
Increase in carrying amount of non-controlling interest	( 182,484)
Capital surplus - Changes in ownership interests in subsidiaries recognized	$ 127,045

Acquisition of additional interests in subsidiaries

(1) On April 22, 2024, the Group purchased 10% of the equity of subsidiary Rizhao Panyue, for RMB 20,000. The carrying amount of the non-controlling interests of Rizhao Panyue, on the date of purchase was $27,189. The transaction decreased the non-controlling interests by $27,189, and the equity attributable to the owners of the parent increased by $27,098.

(2) In December 2024, the Group purchased an additional $33.33\%$ of the issued shares of its subsidiary Huan Hsin from an unrelated party for $5,000 in cash. The carrying amount of the non-controlling interests of Huan Hsin, on the date of purchase was $8,011. The transaction decreased the non-controlling interests by $8,011, and the equity attributable to the owners of the parent increased by $3,011.

	2024
Carrying amount of non-controlling interest purchase	$ 27,189
Consideration paid for non-controlling interests	( 91)
Capital surpluses - Difference between the carrying amount of the consideration paid or received from acquiring or disposing of subsidiaries and the carrying amounts of the subsidiaries	$ 27,098
	2024
---	---
Carrying amount of non-controlling interest purchase	$ 8,011
Consideration paid for non-controlling interests	( 5,000)
Capital surpluses - Difference between the carrying amount of the consideration paid or received from acquiring or disposing of subsidiaries and the carrying amounts of the subsidiaries	$ 3,011

(XXIX) Earnings per share

	2025
	Amount after tax	Number of ordinary shares outstanding at the end of period (thousand)	Earnings per share ($)
Basic earnings per share
Profit attributable to ordinary shareholders of the parent	$ 582,865	130,000	$ 4.48
Diluted earnings per share
Profit attributable to ordinary shareholders of the parent	$ 582,865	130,000
Employees' bonus assumed conversion of all dilutive potential ordinary shares.	-	661
Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	$ 582,865	130,661	$ 4.46

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	2024
	Amount after tax	Number of ordinary shares outstanding at the end of period (thousand)	Earnings per share ($)
Basic earnings per share
Profit attributable to ordinary shareholders of the parent	$ 480,203	130,000	$ 3.69
Diluted earnings per share
Profit attributable to ordinary shareholders of the parent	$ 480,203	130,000
Employees’ bonus assumed conversion of all dilutive potential ordinary shares.	-	587
Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	$ 480,203	130,587	$ 3.68

(XXX) Supplemental cash flow information

Investing activities with partial cash payments:

	2025	2024
(1) Purchase of property, plant and equipment(including interest capitalization)	$ 411,854	$ 433,883
Add: Opening balance of payables on equipment	65,915	176,072
Less: Ending balance of payables on equipment	( 105,279)	( 65,915)
Cash paid during the year	$ 372,490	$ 544,040
	2025	2024
---	---	---
(2) Acquisition of intangible assets - Customer-related	$ 2,008	$ 1,700
Add: Opening long-term accounts payable - Current	14,227	15,613
Add: Opening long-term accounts payable - Non-current	25,551	39,778
Less: Ending long-term accounts payable - Current	( 14,463)	( 14,227)
Less: Ending long-term accounts payable - Non-current	( 11,089)	( 25,551)
Less: Ending other accounts payable	( 66)	-
Net cash outflow from acquisition of subsidiaries	$ 16,168	$ 17,313

Business and investment activities that do not affect cash flow:

	2025	2024
(1) Other non-current assets transfer to Property, plant and equipment	$ 47,033	$ 60,250
(2) Inventory transfer to Property, plant and equipment	$ 839	$ 1,054
(3) Property, plant and equipment transfer to Other non-current assets	$ 859	$ 4,704
(4) Property, plant and equipment transfer to Inventory	$ 95	$ -
(5) Property, plant and equipment transfer to Operating expenses	$ 138	$ 230
(6) Property, plant and equipment transfer to Prepayments	$ 2,073	$ 2,279

(XXXI) Changes in liabilities arising from financing activities

	2025
	Short-term debts	Short-term notes payable	Lease liabilities - Current and non-current	Guarantee deposit received- Non-current and current liabilities	Long-term loan (current portion)	Total liabilities arising from financing activities
January 1	$ 43,448	$ -	$ 361,254	$ 47,031	$ 3,080,500	$ 3,532,233
Increase in cash flows from financing activities	2,346,518	30,000	-	30,256	650,000	3,056,774
Decrease in cash flows from financing activities	(2,342,166)	(30,000)	(29,636)	(20,975)	(1,224,000)	(3,646,777)
Revaluation of lease liabilities	-	-	(21,466)	-	-	(21,466)
Additions to non-cash payments	-	-	7,334	-	-	7,334
Net exchange differences	316	-	(22)	72	-	366
December 31	$ 48,116	$ -	$ 317,464	$ 56,384	$ 2,506,500	$ 2,928,464
	2024
	Short-term debts	Short-term notes payable	Lease liabilities - Current and non-current	Guarantee deposit received- Non-current and current liabilities	Long-term loan (current portion)	Total liabilities arising from financing activities
January 1	$ 79,652	$ -	$ 368,394	$ 47,767	$ 3,264,907	$ 3,760,720
Increase in cash flows from financing activities	2,227,020	-	-	14,746	2,212,500	4,454,266
Decrease in cash flows from financing activities	(2,264,067)	-	(27,469)	(15,597)	(2,396,907)	(4,704,040)
Revaluation of lease liabilities	-	-	17,615	-	-	17,615
Additions to non-cash payments	-	-	2,679	-	-	2,679
Net exchange differences	843	-	35	115	-	993
December 31	$ 43,448	$ -	$ 361,254	$ 47,031	$ 3,080,500	$ 3,532,233

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VII. Related-Party Transactions

(I) Name and relationship of the related parties

Name	Relationship with the Group
Long-Wei Lin	Key management personnel
Ruentex Materials Co., Ltd. (Ruentex Materials)	Subsidiary of the company which invests in the Company by using the equity method
Shung Shing Enterprise Co., Ltd. (Shung Shing)	Other related party

(II) Significant transactions between the parties

1. Operating revenue

	2025	2024
Sales of labor services:
Shung Shing	$ 15,304	$ 13,806
The transaction price of product sales is negotiated with the related parties, and the payment term is net 40 days.

2. Operating costs

	2025	2024
Transportation cost:
Shung Shing	$ 30,246	$ 1,580
Disposal cost:
Ruentex Materials	2,589	2,891
Total	$ 32,835	$ 4,471

The transaction price of product sales is negotiated with the related parties, and the payment terms are separately agreed upon by both parties.

3. Related party receivables

	December 31, 2025	December 31, 2024
Accounts receivable:
Shung Shing	$ 1,349	$ 810

4. Related party payables

	December 31, 2025	December 31, 2024
Accounts payable:
Shung Shing	$ 17,497	$ 1,245
Ruentex Materials	340	183
	$ 17,837	$ 1,428

Leasing arrangements - lessee

(1) The Group rented the employee dormitory in Yunlin from Long-Wei Lin, one of the key management personnel. The lease period is January 1, 2022 to December 31, 2026. The cash payment value calculated by the aforementioned lease period and discount rate is $1,460. As of December 31, 2025, accumulated depreciation of $1,168 has been recognized.

(2) The information on lease liabilities related to lease contracts is as follows:

	December 31, 2025		December 31, 2024
Total of lease payments	$	298	$	595
Less: Mature within one year
(Listed as Lease liabilities - Current)	(	298)	(	296)
Total	$	-	$	299

(3) The information on interest expenses related to lease contracts is as follows:

	2025	2024
Key management personnel	$ 4	$ 8
(III) Key management compensation
	2025	2024
Short-term employee benefits	$ 85,570	$ 77,987
Employment retirement benefits	1,514	1,404
Share-based payment	-	2,283
	$ 87,084	$ 81,674

VIII. Pledged or Mortgaged Assets

Assets pledged by the Company and its subsidiaries as collateral are as follows:

Asset Name	Book value		Purpose
	December 31, 2025	December 31, 2024
Property, plant and equipment	$ 323,547	$ 476,655	Secured borrowings
Time deposit (Recognized as “Financial assets at amortized cost - Current”)	7,835	3,195	Performance guarantee
Time deposit (Recognized as “Financial assets at amortized cost - Non-current”)	24,907	32,243	Performance guarantee
	$ 356,289	$ 512,093

IX. Material contingent liabilities and unrecognized contractual commitments

Other than VI (V)、(VI) (VII) and (XII), the rest are described as follows:

Beijing Ruentex, a subsidiary of the Company, has been entrusted by the Beijing Municipal Government to manage the disposal of medical waste since 2013. The price required review by the Environmental Protection Bureau of Beijing City, and for 2025 and 2024, the income recognized is RMB 44,956,000 and RMB 48,733,000, respectively.

Beijing Ruentex, a subsidiary of the Company, started to manage the cleaning and disposal of medical waste in 2017. It has been approved by the Beijing Environmental Protection Bureau to be eligible for using the abovementioned contracted disposal price starting March 2020.

The relevant incomes recognized for 2025 and 2024 are RMB60,183,000 and RMB74,830,000,

respectively.

The Company leased a land lot in Changhua Coastal Industrial Park by Xi-Xing Section of Xianxi Township on February 8, 2018. The lease period was from February 10, 2018 to February 9, 2038, for a total of 20 years. During the lease period, the land would only be used for the construction and operations of a comprehensive processing center. The land rent was to be paid from the date of signing, and will be paid monthly, twelve times a year and the rent for each period was 1% of the land price announced for the year.
The Company signed a reward contract with Shengang Township Office and Xianxi Township Office of Changhua County in November 2012. The contract period was effective from the date of signing to the end of operations of the plant in Changhua Coastal Industrial Park. The subsidy reward is calculated based on the actual quantity of waste in ton processed by the plant multiplied by the unit price per ton. In 2025 and 2024, amounts of $13,334 and $13,047 were recognized, respectively.
In order to expand the scale of operation, the Company's subsidiary Chin Hsin signed a contract with a waste removal and transportation companies in November 2021 to obtain the list of its customers. Chin Hsin will make the monthly installment over 9 years according to the contract. As the valuation needs to take into account the operating results and is calculated based on a certain proportion, it is a variable consideration. The Group recognized the operating costs of $729 and $1,179, for the periods between 2025 and 2024, respectively.
For years ended December 31, 2025 and 2024, the total of contract construction signed but not yet completed and the prepaid equipment contract were $1,623,150 and $1,393,139, respectively. $1,277,614 and $1,097,620 had been paid toward the contract, and the remaining balance will be paid according to the progress of the project.

X. Losses Due to Major Disasters

None.

XI. Major Subsequent Issues

Please see Note VI (XIX) 7.

XII. Others

(1) Capital management

The Group's objectives when managing capital are to safeguard the Group's ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimum capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. The Group monitors capital on the basis of the gearing ratio. This ratio is calculated as net debt divided by total capital. Net debt is calculated as total borrowings (including "current and non-current borrowings" as shown in the consolidated balance sheet) less cash and cash equivalents. Total capital is calculated as "equity" as shown in the consolidated balance sheet plus net debt.

The Group maintained the same strategy in 2025 as in 2024. It is committed to keeping the debt-to-capital ratio under a certain percentage. For the years ended December 31, 2025 and 2024, the debt-to-capital ratios were as follows:

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	December 31, 2025	December 31, 2024
Total borrowings	$ 2,554,616	$ 3,123,948
Less: Cash and cash equivalents	( 655,554)	( 741,113)
Net debt	1,899,062	2,382,835
Total equity	5,807,002	5,702,439
Total capital	$ 7,706,064	$ 8,085,274
Debt-to-equity ratio	25%	29%

(II) Financial instruments

1. Types of financial instrument

	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	$ 167,804	$ 280,440
Financial assets measured at amortized cost
Cash and cash equivalents	655,554	741,113
Financial assets at amortized cost - Current	166,594	191,164
Notes receivable	23,588	43,947
Accounts receivable (Including related parties)	340,738	562,508
Other receivables	3,423	4,546
Financial assets at amortized cost - Non-current	25,158	32,494
Refundable deposit (Recognized as “Other non-current assets”)	122,814	110,022
	$ 1,505,673	$ 1,966,234
	December 31, 2025	December 31, 2024
Financial liabilities
Financial liabilities at amortized cost
Short-term debts	$ 48,116	$ 43,448
Notes payable	9,246	8,675
Accounts payable (Including related parties)	183,712	157,160
Other payables	524,807	479,852
Long-term loan (due within one year)	2,506,500	3,080,500
Long-term accounts payable (due within one year)	25,552	39,778
Guarantee deposit received (Recognized as “Other current liabilities” and “Other non-current liabilities”)	56,384	47,031
	$ 3,354,317	$ 3,856,444
Lease liabilities - Current and non-current	$ 317,464	$ 361,254

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Risk management policies

(1) The Group’s activities expose it to a variety of financial risks, including market risk (exchange rate, interest rate and price), credit risk and liquidity risk. The Group does not undertake derivative trading.

(2) Risk management is carried out by a central finance department (Group finance) under policies approved by the Board of Directors. Group finance identifies, evaluates and hedges financial risks in close collaboration with the Group’s operating units. The Board provides written principles for overall risk management, as well as written policies covering specific areas and matters, such as currency exchange risk, interest rate risk, credit risk, the use of derivatives and non-derivative financial instruments and investment of excess liquidity.

Significant financial risks and degrees of financial risks

(1) Market risk

Foreign exchange risk

A. The Group is a multinational operation and therefore is subject to exchange rate risk arising from transactions between the different currencies of the Company and its subsidiaries, mainly in US dollars and RMB. The related exchange risk from future business transactions have been recognized in assets and liabilities.

B. The Group's operations involve certain non-functional currencies (the Company’s and certain subsidiaries’ functional currency is the New Taiwan dollar (NTD). For other certain subsidiaries, the functional currency is the Renminbi (RMB)), so it is subject to the impact of exchange rate fluctuation. The details of assets and liabilities denominated in foreign currencies whose values that would be materially affected by exchange rate fluctuations are as follows:

	December 31, 2025
	Foreign currency (in thousand)	Exchange rate	Book value (NTD)
(Foreign currency: Functional currency)
Financial assets
Monetary items
USD : NTD	$ 1,145	31.43	$ 35,987
RMB : NTD	5,343	4.50	24,044
USD : RMB	16	6.99	503
	December 31, 2024
	Foreign currency (in thousand)	Exchange rate	Book value (NTD)
(Foreign currency: Functional currency)
Financial assets
Monetary items
USD : NTD	$ 26,027	32.79	$ 853,425
RMB : NTD	181,700	4.48	814,016
USD : RMB	770	7.30	25,248
Financial liabilities
Monetary items
USD : RMB	25,800	7.30	845,982

C. The Group's monetary items were significantly affected by exchange rate fluctuations, resulting in total recognized foreign exchange (losses) gains (including both realized and unrealized) of $22,072 and $56,166 for the years ended December 31, 2025 and 2024, respectively.

D. The analysis of foreign currency risk due to significant exchange rate fluctuation is as follows:

	2025
	Sensitivity Analysis
	Fluctuation	Profit and loss affected
(Foreign currency: Functional currency)
Financial assets
Monetary items
USD : NTD	1%	$ 360
RMB : NTD	1%	240
USD:RMB	1%	5
	2024
	Sensitivity Analysis
	Fluctuation	Profit and loss affected
(Foreign currency: Functional currency)
Financial assets
Monetary items
USD : NTD	1%	$ 8,534
RMB : NTD	1%	8,140
USD:RMB	1%	252
Financial liabilities
Monetary items
USD:RMB	1%	8,460

Price risk

A. The debt instruments owned by the Group exposing to the price risk are financial assets at fair value through profit or loss. To manage the price risk of debt instruments, the Group diversifies its investment portfolio in a manner that is based on the limits set by the Group.

B. The Group invests primarily in open-end funds. The price of such debt instrument is subject to the uncertainty of the future value of the investment target. If the price of such debt instrument increases or decreases by 1%, while all other factors remain unchanged, the net profit affected by debt instruments at fair value through profit or loss after tax for 2025 is an increase or a decrease of $1,678 and $2,804.

Cash flow and fair value interest rate risk

A. The Group's interest rate risk mainly comes from long-term borrowings and short-term borrowings issued at floating rates, which exposes the Group to cash flow interest rate risk. For 2025 and 2024, the Group's borrowings issued at

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floating rates were mainly denominated in NTD and RMB.

B. If the interest rates of borrowing NTD increases or decreases by 1%, while all other factors remain constant, the net income after tax for 2025 and 2024 is a decrease or increase of $20,052 and $24,644, respectively, mainly due to the interest expense changes caused by the floating interest rate.

C. If the interest rates of borrowing RMB increases or decreases by 1%, while all other factors remain constant, the net income after tax for 2025 and 2024 is a decrease or increase of $68 and $0, respectively, mainly due to the interest expense changes caused by the floating interest rate.

(2) Credit risk

A. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments under contract obligations, and the defaults are notes receivable, accounts receivable, debt instruments measured at amortized cost or at fair value through profit and loss and other financial assets.

B. The management of credit risk is established with a Group perspective. Only the banks and financial institutions with an independent credit rating of "Good" can be accepted as transaction partners of the Group. According to the internal credit policy and the Group's credit policy, each local entity in the Group is responsible for managing and analyzing 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 utilization of credit limits is regularly monitored.

C. The Group uses IFRS 9 to provide an assumption that if a contract payment is overdue for more than 90 days in accordance with the agreed payment terms, it is considered a breach of contract.

D. The Group uses IFRS 9 to provide the following assumption as a basis for determining whether there is a significant increase in the credit risk of financial instruments after the original recognition:

(A) If the contract payment is overdue for more than 30 days in accordance with the agreed payment terms, the credit risk of the financial asset is significantly increased since the original recognition.

(B) If any external rating agency rates it as an investment grade on the balance sheet date, the credit risk of the financial asset are considered low.

E. The Group uses the following indicators to determine the status of credit impairments of debt instruments:

(A) The issuer has suffered significant financial difficulties or is likely to enter bankruptcy or other financial restructuring.

(B) The issuer experiences a disappearance of the active market for such financial assets due to financial difficulties.

(D) Unfavorable changes in the national- or regional-level economic situation resulting in the issuer's default.

F. The Group categories the accounts receivable from customers based on their types and collection methods. The loss ratio method is adopted as the basis for estimating the expected credit loss.

G. The Group may write off the amount in financial assets that cannot be

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reasonably expected to be recovered after recourse. However, the Group will continue the recourse to protect the rights of the claims. For the year ended December 31, 2025 and 2024, the Group has $2,068 and $2,496, respectively, that have been written off but are involved in recourse.

H. The Group has included the economic indicators and signals of the National Development Council and composite leading indicators of the OECD and estimated the loss allowance for accounts receivable(including related parties) based on the loss rates built according to historical and current data. The loss rates as of December 31, 2025 and 2024 are shown as follows:

December 31, 2025	Not past due	30 days past due	31 to 90 days past due	91 days past due (and more)	Total
Expected loss rate	0.03%	21.88%~74.07%	28.57%~80.05%	70.39%~100%
Total book value	$ 661,943	$ 5,355	$ 11,492	$ 67,820	$ 746,610
Loss allowance	$ 190	$ 2,264	$ 6,404	$ 61,160	$ 70,018
	Not past due	30 days past due	31 to 90 days past due	91 days past due (and more)	Total
December 31, 2024
Expected loss rate	0.03%	20.53%~49.77%	30.79%~71.97%	48.06%~100%
Total book value	$ 596,852	$ 7,538	$ 8,982	$ 40,066	$ 653,438
Loss allowance	$ 173	$ 3,120	$ 5,712	$ 37,978	$ 46,983

I. The Group adopts a simplified method in which the loss allowance for the accounts receivable is shown below:

	2025
	Notes receivable	Accounts receivable	Total
January 1 (Reversal)recognize impairment loss	$ 14	$ 46,969	$ 46,983
Amounts reversed due to recovery	-	1,380	1,380
Impact from the exchange rate	-	1,015	1,015
December 31	$ 13	$ 70,005	$ 70,018
	2024
---	---	---	---
	Notes receivable	Accounts receivable	Total
January 1 (Reversal)recognize impairment loss	$ 24	$ 16,528	$ 16,552
Amount written off due to uncollectible account	- (	12,686)	(12,686)
Impact from the exchange rate	-	733	733
December 31	$ 14	$ 46,969	$ 46,983

The impairment losses of accounts receivable recognized for 2025 and 2024 are $20,640 and $42,384, respectively, which were generated by client contracts.

J. The Group’s other receivables have been assessed based on the 12-month expected credit loss model, and no allowance for loss has been recognized.

K. The Group recognizes financial assets measured at amortized cost, which are time deposits with a maturity period of longer than three months or more than one year and pledged time deposits. The Group associates with a variety of financial institutions, all with high credit quality to disperse credit risks, so it expects that the probability of counterparty default is remote.

(3) Liquidity risk

A. Cash flow forecasting is performed by the operating entities of the Corporate Group and aggregated by the Group’s treasury department. It monitors rolling forecasts of liquidity requirements to ensure the Group has sufficient cash to meet operational needs, so that the Group does not breach borrowing limits or covenants on any of its borrowing facilities. Such forecasting takes into consideration the Group’s debt financing plans, covenant compliance, and compliance with internal balance sheet ratio targets.

B. The Company's unutilized borrowings are shown as follows:

	December 31, 2025	December 31, 2024
Floating rate
Mature within one year	$ 2,564,084	$ 2,506,962
More than 1 year	1,790,000	650,000
	$ 4,354,084	$ 3,156,962

C. The table below analyses the Group's non-derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for non-derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.

Non-derivative financial liabilities :

December 31, 2025	Less than 1 year	1 to 3 years	More than 3 years
Short-term debts	$ 48,116	$ -	$ -
Notes payable	9,246	-	-
Accounts payable	165,875	-	-
Accounts payable- Related parties	17,837	-	-
Other payables	524,807	-	-
Lease liabilities - Current and non-current (Note)	34,250	61,417	260,045
Long-term loan (due within one year) (Note)	70,664	2,287,090	238,691
Long-term accounts payable (due within one year) (Note)	14,783	6,537	4,903
Refundable deposit	49,024	7,360	-

Non-derivative financial liabilities :

December 31, 2024	Less than 1 year	1 to 3 years	More than 3 years
Short-term debts	$ 43,448	$ -	$ -
Notes payable	8,675	-	-
Accounts payable	155,732	-	-
Accounts payable- Related parties	1,428	-	-
Other payables	479,852	-	-
Lease liabilities - Current and non-current (Note)	33,791	64,847	307,357
Long-term loan (due within one year) (Note)	157,217	2,728,367	267,331
Long-term accounts payable (due within one year) (Note)	14,782	18,869	7,354
Refundable deposit	41,192	5,119	-

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

D. The Group does not expect that the cash flow analyzed for the maturity date will be significantly earlier or the actual amount will be significantly different.

(III) Fair value information

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

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

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

Level 3: Unobservable inputs for the asset or liability.

Financial instruments not measured at fair value

The Group has financial instruments not measured at fair value, including cash and cash equivalents, financial assets at amortized cost, notes receivable, accounts receivable, other receivables, other financial assets, short-term borrowings, short-term bills payable, notes payable, accounts payable, other payable, lease liabilities and book value of long-term borrowings as a reasonable approximation of fair value.

The related information for 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:

(1) The Group classifies its assets according to their nature, and the relevant information is as follows:

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December 31, 2025	Level 1	Level 2	Level 3	Total
Assets
Recurring fair value measurements
Financial assets at fair value through profit or loss
Beneficiary certificates	$ 167,804	$ -	$ -	$ 167,804
December 31, 2024	Level 1	Level 2	Level 3	Total
---	---	---	---	---
Assets
Recurring fair value measurements
Financial assets at fair value through profit or loss
Beneficiary certificates	$ 280,440	$ -	$ -	$ 280,440

(2) The methods and assumptions used by the Group to measure fair value are as follows: The Group adopts market price as the fair value input (Level 1), and the market price is the closing price.

XIII. Additional Disclosures

(I) Significant transactions information

Loans to others: Please refer to Table I.
Provision of endorsements and guarantees to others: Please refer to Table II.
Holding marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to Table III.
Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more: Please refer to Table IV.
Receivables from related parties reaching $100 million or 20% of paid-in capital or more: Please see Table V.
Significant inter-company transactions during the reporting periods: Please refer to Table VI.

(II) Information on investees

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

(III) Information on investments in China

Basic information: Please refer to Table VIII.
Significant transactions, either directly or indirectly through a third area, with investee companies in China: Please see Table V and VI.

XIV. Operating Segments Information

(I) General information

Management has determined the reportable operating segments based on reports reviewed by the chief operating decision-maker and used to make strategic decisions. The chief operating decision-maker considers the business from labor service and product classification perspectives and evaluates the performance of organizational units based on the perspectives. Currently, the Group focuses on transportation and disposal of medical waste. The remaining operating results are consolidated and demonstrated in other operating units.

(II) Measurement of segment information

Except for the overseas operating units of which the pension is allocated based on the regulations of the local government, the accounting policies of operating units are the same as the summary described in Note IV.
The Group measures the revenue and operating net profit of segments to evaluate their performance, and the impact of inter-segment transactions has been eliminated.

(III) Information on segment profit and loss, assets and liabilities

Information on the reporting segments provided to the chief operating decision maker is shown as follows:

	2025
	Transportation	Disposal	Others	Adjustment and Write-off	Grand Total
Revenue from external clients	$ 953,029	$ 2,970,010	$ 67,511	$ -	$ 3,990,550
Inter-segment transactions	315,369	10,484	13,741	( 339,594)	-
Segment revenue	$ 1,268,398	$ 2,980,494	$ 81,252	($ 339,594)	$ 3,990,550
Net profit of segment	$ 309,614	$ 479,726	$ 7,066	$ 114,382	$ 910,788
Segment assets	$ 1,625,289	$ 12,899,708	$ -	($ 4,466,431)	$ 10,058,566
Segment margin includes depreciation expenses	$ 57,126	$ 584,165	$ -	$ -	$ 641,291
Amortization expense	$ 6,733	$ 81,344	$ -	$ -	$ 88,077

	2024
	Transportation	Disposal	Others	Adjustment and Write-off	Grand Total
Revenue from external clients	$ 594,014	$ 3,079,603	$ 23,075	$ -	$ 3,696,692
Inter-segment transactions	210,640	1,439	12,868	( 224,947)	-
Segment revenue	$ 804,654	$ 3,081,042	$ 35,943	($ 224,947)	$ 3,696,692
Net profit of segment	$ 263,794	$ 249,792	$ 264	$ 157,422	$ 671,272
Segment assets	$ 1,543,407	$ 13,897,614	$ -	($ 4,853,693)	$ 10,587,328
Segment margin includes depreciation expenses	$ 48,079	$ 553,698	$ -	$ -	$ 601,777
Amortization expense	$ 6,697	$ 71,003	$ -	$ -	$ 77,700

(IV) Reconciliation of segment income (loss), assets and liabilities

Revenue from external customers and segment income (loss) reported to the chief operating decision-maker are measured using the same method as for revenue and profit before tax in the financial statements. Thus, no reconciliation is needed.

(V) Information on products and services

The Group is mainly engaged in transportation, disposal and incineration of medical waste, general business waste, waste cleaning, equipment installation and engineering and environmental construction consulting. The segment revenue in the abovementioned (III) refers to the operating revenue from external clients and other revenue, excluding the general revenue not related to the segments.
The balance of revenue from external clients is the same as the information on segment revenue in the abovementioned (III).

(VI) Geographical information

Information by region for the Group in 2025 and 2024:

	2025		2024
	Revenue	Non-current assets	Revenue	Non-current assets
Taiwan	$ 3,206,958	$ 4,450,373	$ 2,750,683	$ 4,546,250
China	783,592	3,483,306	946,009	3,761,928
Total	$ 3,990,550	$ 7,933,679	$ 3,696,692	$ 8,308,178

(VII) Major customer information

The Group had no revenue from a single external client that accounted for more than 10% of the revenue for the year of 2025 and 2024.

Sunny Friend Environmental Technology Co., Ltd. and Subsidiaries

Loans to Others

January 1 to December 31, 2025

Table I

Unit: NT$1,000

(Unless otherwise specified)

Code (Note 1)	Company that lent funds	Borrowing party	General ledger account (Note 2)	Is a related party	Maximum balance of the period (Note 3)	Balance at the end of period (Note 8)	Actual amount drawn down	Range of interest rate	Nature of loan (Note 4)	Amount in transactions with the borrower (Note 5)	Reason for short-term financing (Note 6)	Amount in recognized impairment loss	Collateral		Limit on loans granted to a single party (Note 7)	Ceiling on total loan granted (Note 7)	Remarks
													Guarantee name	Value
1	Full Giant Resources Ltd.	Yuncheng Ruentex Environmental Technology Co., Ltd.	Accounts receivable - Related party	Yes	$ 1,072,856	$ -	$ -	-	Short-term financing	$ -	Business operations	$ -	-	$ -	$ 3,760,190	$ 3,760,190	Note 9
1	Full Giant Resources Ltd.	Beijing Ruentex Environmental Technology Co., Ltd.	Accounts receivable - Related party	Yes	199,260	-	-	-	Short-term financing	-	Business operations	-	-	-	3,760,190	3,760,190	Note 9
1	Full Giant Resources Ltd.	Jiangsu Suqian Ruentex Environmental Control Co., Ltd.	Accounts receivable - Related party	Yes	448,335	-	-	-	Short-term financing	-	Business operations	-	-	-	3,760,190	3,760,190	Note 9
2	Beijing Ruentex Environmental Technology Co., Ltd.	Yuncheng Ruentex Environmental Technology Co., Ltd.	Accounts receivable - Related party	Yes	320,110	314,720	260,768	3.5%	Short-term financing	-	Business operations	-	-	-	524,108	1,048,215	Note 10 and Note 12
2	Beijing Ruentex Environmental Technology Co., Ltd.	Rizhao Panyue Environmental Technology Co., Ltd.	Accounts receivable - Related party	Yes	365,840	13,488	-	3.5%	Short-term financing	-	Business operations	-	-	-	524,108	1,048,215	Note 10 and Note 13
2	Beijing Ruentex Environmental Technology Co., Ltd.	Jiangsu Suqian Ruentex Environmental Control Co., Ltd.	Accounts receivable - Related party	Yes	91,460	89,920	77,331	3.5%	Short-term financing	-	Business operations	-	-	-	524,108	1,048,215	Note 10 and Note 14

Table I, Page 1

Note 1: The explanation of the Code column is as follows:

(1) Issuer fills in 0.
(2) The subsidiaries are numbered in order starting from 1.

Note 2: Accounts receivable from affiliates and related parties, shareholders' transactions, prepayments, temporary payments and others must be filled in this field if they are considered loans in nature.

Note 3: Maximum balance of funds loaned to others in the current year.

Note 4: The nature of the loan should be listed as business transactions or those that have the needs for short-term financing.

Note 5: If the nature of the loans is business transactions, the amount in transactions should be filled in. The amount in transactions refers to the amount between the company which provides the loans and the borrower.

Note 6: If the nature of the loans is short-term financing, the reasons for borrowing and the purposes of the loans must be specified, such as repayment of loans, purchase of equipment, business operations and others.

Note 7: The limits for separate borrowers and the total amount in loans lent out should be specified in accordance with the Company's regulations on loans to others, and the remark box should explain the calculation of limits for separate borrowers and the total amount in loans available.

Note 8: If a publicly traded company wishes to propose the entries of loans to the board for resolution in accordance with Paragraph 1, Article 14 of the Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies, the amounts determined by the board shall be listed in the announced balance before the disbursement of loans to disclose the risks the company undertakes. The remaining balances after repayments should also be disclosed to reflect the adjustment of risks. According to Paragraph 2, Article 14 of the Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies, once the board authorizes the chairman to issue the loans in multiple disbursements at a specific amount within a year or in a revolving credit line, the limit of the loan authorized by the board should still be put in the public announcement. This is in consideration of the fact that loans may be given out again after the repayments, so the amounts determined by the board shall be listed in the announced balance.

Note 9: The overseas company Full Giant Resources Ltd., in which the Company directly holds 100% of the voting shares, should not disburse loans totaling more than 100% of the net value of loan recipients, and the amount in loan to a single party should not exceed 100% of the net value of loan recipient.

Note 10: The overseas company Beijing Ruentex, in which the Company indirectly holds 100% of the voting shares, should not disburse loans totaling more than 40% of the net value of loan recipients, and the amount in loan to a single party should not exceed 20% of the net value of loan recipient.

Note 11: The aforementioned net value is based on the net value of the Company's most recent consolidated financial report audited by an accountant.

Note 12: The ending balance is RMB$70,000,000, which is converted into an amount in New Taiwan Dollar according to the spot exchange rate from the Bank of Taiwan on December 31, 2025 at 4.496.

Note 13: The ending balance is RMB$3,000,000, which is converted into an amount in New Taiwan Dollar according to the spot exchange rate from the Bank of Taiwan on December 31, 2025 at 4.496.

Note 14: The ending balance is RMB$20,000,000, which is converted into an amount in New Taiwan Dollar according to the spot exchange rate from the Bank of Taiwan on December 31, 2025 at 4.496.

Table I, Page 2

Sunny Friend Environmental Technology Co., Ltd. and Subsidiaries

Provision of endorsements and guarantees to others

January 1 to December 31, 2025

Table II
Unit: NT$1,000
(Unless otherwise specified)

Code(Note 1)	Party being endorsed/guaranteed			Limit onendorsements/guaranteesprovided for asingle party(Note 3)	HighestEndorsementBalance of thePeriod (Note 4)	Outstandingendorsement/guarantee balance(Note 5)	Actual amountdrawn down(Note 6)	Amount ofendorsements/guaranteessecured withcollateral	Ratio ofaccumulatedendorsement/guaranteeamount to net assetvalue of theendorsement/guarantorarantees provided(Note 3)	Provision ofendorsements/guaranteesbyprioritize theendorsement/guarantees bysubsidiary toparentcompany(Note 7)	Provision ofendorsements/guaranteesbysubsidiary toparentcompany(Note 7)	Provision ofendorsements/guaranteesto the party inChina (Note 7)	Remarks
	Endorser/guarantor	Company Name
0	Sunny Friend EnvironmentalTechnology Co., Ltd.	Yuncheng RuentexEnvironmental TechnologyCo., Ltd.	2	$ 2,126,972	$ 44,960	$ 44,960	$ 8,502	$ -	0.85%	$ 5,317,431	Y	N	Y
0	Sunny Friend EnvironmentalTechnology Co., Ltd.	Rizhao PanyueEnvironmental TechnologyCo., Ltd.	2	2,126,972	90,690	89,920	614	-	1.69%	5,317,431	Y	N	Y
0	Sunny Friend EnvironmentalTechnology Co., Ltd.	Jiangsu Suqian RuentexEnvironmental ControlCo., Ltd.	2	2,126,972	90,690	89,920	-	-	1.69%	5,317,431	Y	N	Y
0	Sunny Friend EnvironmentalTechnology Co., Ltd.	Beijing RuentexEnvironmental TechnologyCo., Ltd.	2	2,126,972	89,920	89,920	-	-	1.69%	5,317,431	Y	N	Y

Note 1: The explanation of the Code column is as follows:
(1) Issuer fills in 0.
(2) The subsidiaries are numbered in order starting from 1.

Note 2: There are the following seven types of relationships between the endorser/guarantor and the party being endorsed/guaranteed:

(1) A company with business relations.

(2) The Company directly or indirectly holds more than 50% of the voting shares of the other company.

(3) The other company directly or indirectly holds more than 50% of the voting shares of the Company.

(4) The Company directly or indirectly holds more than 90% of the voting shares of the other company.

(5) Companies that are mutual protected due to mutual endorsement between industry partners or joint construction builders based on the needs of the project.

(6) A company endorsed or guaranteed by all contributing shareholders in the order of their shareholding proportion for a co-investment relationship.

(7) Industry partners who are engaged in the sales of pre-construction homes and conduct joint guarantee for the performance of contract based on Consumer Protection Act.

Note 3: Fill in the amount limit of endorsement guarantee for individual counterparty and the total amount limit of endorsement guarantee specified in accordance with the Company's regulations on provision of endorsements and guarantees to others, and explain the calculation of limits for each individual counterparty and the total amount limit in the remark box.

Note 4: The maximum balance guaranteed for others during the year.

Note 5: The amount approved by the board of directors. However, if the board of directors authorize the chairperson for resolution in accordance with Subparagraph 8 or Article 12 of the "Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies", then this refers to the amount determined by the chairperson.

Note 6: Shall enter the actual amount used by the endorsed company within the balance limit of the endorsement.

Note 7: Fill in Y if it is an endorsement of a subsidiary by its parent company that is publicly listed or an OTC, or an endorsement of a parent company that is publicly listed or an OTC, by its subsidiary, or an endorsement in China.

Note 8: The ceiling amount of endorsement guarantees by the Company to others is limited to no more than 100% of the Company's net worth, and the ceiling of endorsement guarantees for a single enterprise is limited to no more than 40% of the Company's net worth.

Table II, Page2

Sunny Friend Environmental Technology Co., Ltd. and Subsidiaries
Holdings of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures)
December 31, 2025

Table III

Unit: NT$1,000

(Unless otherwise specified)

Company name of the shareholding	Marketable securities	Relationship with the securities issuer		End of Period
	(Note 1)	(Note 2)	General ledger account	Number of units	Carrying amount (Note 3)	Ownership	Fair value	Remarks (Note4)
Chin Hsin	UPAMC James Bond	-	Financial assets at fair value	9,500,827.38	$ 167,804	-	$ 167,804
Environmental Engineering	Money Market Fund		through profit and loss - Current

Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities within the scope of IFRS 9, Financial Instruments
Note 2: The box is exempt if the issuer of the negotiable securities is not a related person.
Note 3: Fair value is determined based on fair value less accumulated impairment for marketable securities measured at fair value. Fair value is determined based on the acquisition cost or amortized cost less accumulated impairment for marketable securities not measured at fair value.
Note 4: If the listed negotiable securities are restricted due to being used as a guarantee, pledge or other agreements, the remark box shall be filled with a description to clarify the number of shares as guarantee or borrowings or the amount and restrictions.
Note 5: The Company determines which securities shall be disclosed based on the principle of materiality.

Table III, Page 1

Sunny Friend Environmental Technology Co., Ltd. and Subsidiaries

Purchases from and sales to related parties amounting to NT$100 million or more, or 20% or more of paid-in capital

January 1 to December 31, 2025

Table IV

Unit: NT$1,000

(Unless otherwise specified)

Purchaser/seller	Counterparty	Relationship with the endorser/ guarantor	Transaction				terms compared with third party transactions(Note 1)		Receivable (Payable) Notes and Accounts		Remarks (Note 2)
			Purchase / Sales	Amount	Percentage of Total Purchases (Sales)	Credit term	Unit Price	Credit term	Balance	Percentage of Total Receivable (Payable) Notes and Accounts
Sunny Friend Environmental Technology Co., Ltd	Chin Hsin Environmental Engineering	Subsidiary	Purchase	$ 279,845	18.56%	30-60 days	Negotiated Pricing	Payments collected according to contractual terms	$ -	0.00%
Chin Hsin Environmental Engineering	Sunny Friend Environmental Technology Co., Ltd	Parent company	Sales	283,825	47.98%	30-60 days	Negotiated Pricing	Payments collected according to contractual terms	-	0.00%	Note5

Note 1: If the transaction terms of the related party are different from the general terms, please specify the differences and reasons in the unit price and credit term boxes.
Note 2: If there is any advanced payment or pre-payment, please specify the reasons, contract terms, amount and the differences from the general terms in the remarks box.
Note 3: Paid-in capital refers to the paid-in capital of the parent company. In the event the issuer's shares have no par value or a par value other than NT$10, the calculation of transaction amounts of 20% of paid-in capital will be substituted by the 10% of equity attributable to owners of the parent company.
Note 4: Calculated from the perspective of the company making the purchases or sales
Note 5: Revenue from waste removal and plastic wood.

Table IV, Page 1

Sunny Friend Environmental Technology Co., Ltd. and Subsidiaries
Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more
December 31, 2025

Table V

Unit: NT$1,000
(Unless otherwise specified)

Company in accounts receivable	Counterparty	Relationship with the endorser/guarantor	Balance of AR from related party	Turnover rate	Overdue receivables		Amount collected subsequent to the balance sheet date	Amount of recognized impairment loss
					Amount	Actions Taken
Beijing Ruentex Environmental Technology Co., Ltd.	Yuncheng Ruentex Environmental Technology Co., Ltd.	Subsidiary	$ 293,371	Note 2	$ -	-	$ -	$ -

Note 1: Paid-in capital refers to the amount in paid-in capital of the parent company. In the event the issuer's shares have no par value or a par value other than NT$10, the calculation of transaction amounts of 20% of paid-in capital will be substituted by the 10% of equity attributable to owners of the parent company.
Note 2: Actual expenditure amount of loan and other receivables.

Table V, Page 1

Sunny Friend Environmental Technology Co., Ltd. and Subsidiaries

Significant inter-company transactions during the reporting periods

January 1 to December 31, 2025

Table VI

Unit: NT$1,000

(Unless otherwise specified)

Status of transaction

Code (Note 1)	Company Name	Counterparty	Relationship	General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note 3)
0	Sunny Friend Environmental Technology Co., Ltd.	Chin Hsin Environmental Engineering Co., Ltd.	1	Account receivables	$ 30,501	Note 7	0.30%
		Liang Wei Environmental Engineering Co., Ltd.	1	Account receivables	7,287	Note 7	0.07%
1	Chin Hsin Environmental Engineering Co., Ltd.	Sunny Friend Environmental Technology Co., Ltd.	2	Transportation revenue	283,825	Note 5	7.11%
3	Cheng Shin Environmental Engineering Co., Ltd.	Sunny Friend Environmental Technology Co., Ltd.	2	Transportation revenue	20,693	Note 5	0.52%
4	Liang Wei Environmental Engineering Co., Ltd.	Sunny Friend Environmental Technology Co., Ltd.	2	Transportation revenue	22,823	Note 5	0.57%
5	Beijing Ruentex Environmental Technology Co., Ltd.	Yuncheng Ruentex Environmental Technology Co., Ltd.	3	Other receivables	293,371	Note 6	2.92%
		Jiangsu Suqian Ruentex Environmental Control Co., Ltd.	3	Other receivables	85,281	Note 6	0.85%
		Rizhao Panyue Environmental Technology Co., Ltd.	3	Account receivables	6,636	Note 5	0.07%

Table VI, Page 1

Note 1: 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 2: Relationship between transaction company and the counterparty is classified into the following three categories; fill in the number of categories each case belongs to (If transactions between the parent company and subsidiaries or between subsidiaries refer to the same transaction, it is not required to disclose it twice. For example, if the parent company has already disclosed its transaction with a subsidiary, then the subsidiary is not required to disclose the transaction; for transactions between two subsidiaries, if one of the subsidiaries has disclosed the transaction, then the other is not required to disclose the transaction):

(1) Parent company to subsidiary.
(2) Parent company to second-tier subsidiaries.
(3) Subsidiary to subsidiary.

Note 3: Regarding the percentage of the transaction amount to consolidated total operating revenues or total assets, it is computed based on the period-end balance of the transaction to the consolidated total assets for balance sheet accounts and based on accumulated transaction amount for the period to the consolidated total operating revenues for income statement accounts.

Note 4: A transaction amount in more than $6,000 will be disclosed. It will be disclosed in the asset and revenue aspects.

Note 5: There are no major abnormalities in the transaction terms and prices of the related party than non-related parties.

Note 6: Loans to others and interests receivable.

Note 7: It is the payment entrusted to be collected by the removal and transportation company according to the waste management contract, so it is recognized as accounts receivable.

Table VI, Page 2

Sunny Friend Environmental Technology Co., Ltd. and Subsidiaries
Names, locations and other information of investee companies (not including investees in China)
January 1 to December 31, 2025

| Table VII | | | | | | | | | | | | Unit: NT$1,000
(Unless otherwise specified) |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Name of Investor | Investee
(Note 1 and 2) | Location | Main business activities | Initial investment amount | | | Shares held as of the end of the period | | | Net profit (loss)
of the investee
for the current period
(Note 2 (2)) | Investment income (loss)
recognized by the Company for
the current period (Note 2(3)) | Remarks |
| | | | | Balance at the end of the period | End of the previous year | Number of Shares | percentage % | Book value | | | | |
| Sunny Friend Environmental Technology | Chin Hsin Environmental Engineering Co., Ltd. | Yunlin | Disposal of medical and industrial waste | $ 288,534 | $ 288,534 | 26,415,300 | 57.42 | $ 599,023 | $ 247,739 | $ 142,251 | Subsidiary | |
| | Full Giant Resources Ltd. | British Virgin Islands | Holding company | 3,948,928
(USD 125,642,000) | 4,119,801
(USD 125,642,000) | 126,100,000 | 100.00 | 3,760,191 | (256,633) | (256,633) | * | |
| Chin Hsin Environmental Engineering Co., Ltd. | Liang Wei Environmental Engineering Co., Ltd. | Taoyuan | Disposal of medical and industrial waste | 64,041 | 64,041 | 5,500,000 | 100.00 | 138,419 | 61,707 | - | * | |
| | Cheng Shin Environmental Engineering Co., Ltd. | Tainan | Disposal of medical waste | 34,357 | 34,357 | 2,000,000 | 100.00 | 73,922 | 15,559 | - | * | |
| | Huan Hsin Precision Co., Ltd. | Yunlin | Manufacturing of building materials | - | 25,000 | - | - | - | (121) | - | * | |
| Full Giant Resources Ltd. | Arise Profits Ltd. | British Virgin Islands | Investment | 1,022,418
(USD 32,530,000) | 1,066,659
(USD 32,530,000) | 44,650,000 | 100.00 | 2,527,863 | (156,809) | - | * | |

Note 1: If the publicly listed company has an overseas holding company and uses the consolidated financial report as the main financial report in accordance with the local laws and regulations, the disclosure of the overseas invested company may only disclose the relevant information of the holding company.
Note 2: Those that are not as described in Note 1 shall be filled in accordance with the following rules:
(1) "Investee," "Location," "Main business activities," "Initial investment amount," and "End-of-year shareholdings" are to be filled on order of the Company (publicly listed) and its re-investment and all investees either directly or indirectly invested and the further re-investment. The relation (either subsidiaries or second-tier subsidiaries) between investees and the Company (publicly listed) are to be specified in the remarks field.
(2) The field of "Net profit (loss) of the investee for the year ended" shall have the profit or loss of each investee filled in.
(3) The field of "Investment income (loss) recognized by the Company for the year ended" only requires the Company (publicly listed) to recognize the directly-invested subsidiaries and the profit or loss incurred by adopting the equity method, and the rest can be omitted. When filling in "Recognition of profit or loss in directly-invested subsidiaries for the year," make sure that the profit or loss of subsidiary have included their own profit or loss incurred in their re-investment.

Table VII, Page 1

Sunny Friend Environmental Technology Co., Ltd. and Subsidiaries

Information on investments in China - Basic information

January 1 to December 31, 2025

Table VIII

Unit: NT$1,000

(Unless otherwise specified)

Investee in China	Main business activities	Paid-in capital	Investment method (Note 1)	Accumulated amount of remittance from Taiwan to China as of January 1, 2025	Remitted to	Remitted back	Accumulated amount of remittance from Taiwan to China as of December 31, 2025	Net profit (loss) of the investee for the current period	Ownership held by the Company (direct or indirect)	Investment income (loss) recognized by the Company for the current period (Note 2)	Book value of investments in China as of December 31, 2025	Accumulated amount in investment income remitted back to Taiwan as of the end of the period	Remarks
Beijing Ruentex Environmental Technology Co., Ltd.	Environmental sanitation and pollution control service	$ 1,756,528 (USD 55,887,000)	(2)	$ 255,274 (USD 8,122,000)	$-	$-	$ 255,274 (USD 8,122,000)	($ 159,229)	100.00	($ 159,229)	$ 2,620,538	$-	Note 2 (2) B - Note 3 - Note 6 and Note 9
Jiangsu Suqian Ruentex Environmental Technology Co., Ltd.	Environmental sanitation and pollution control service	908,378 (RMB 198,490,000)	(2)	471,450 (USD 15,000,000)	-	-	471,450 (USD 15,000,000)	(38,966)	100.00	(38,966)	686,930	-	Note 2 (2) B - Note 4 - Note 5 and Note 6
Langfang Ruentex Environmental Technology Co., Ltd.	Environmental sanitation and pollution control service	- (USD 0)	(2)	47,145 (USD 1,500,000)	-	-	47,145 (USD 1,500,000)	(308)	100.00	(308)	-	-	Note 2 (2) B - Note 5 and Note 8
Yuncheng Ruentex Environmental Technology Co., Ltd.	Environmental sanitation and pollution control service	1,682,185 (RMB 367,813,000)	(2)	628,000 (USD 20,000,000)	-	-	628,600 (USD 20,000,000)	(124,077)	100.00	(124,077)	1,212,019	-	Note 2 (2) B - Note 5 - Note 6 and Note 7
Rizhao Panyue Environmental Technology Co., Ltd.	Environmental sanitation and pollution control service	694,873 (RMB 160,937,000)	(2)	825,466 (RMB 183,600,000)	-	-	825,466 (RMB 183,600,000)	(111,695)	100.00	(111,695)	523,667	-	Note 2 (2) B and Note 5

Note 1: Investment methods are classified into the following three categories; fill in the number of categories each case belongs to:
(1) Directly invest in a company in China.
(2) Through investing in an existing company in the third area (please specify the company), which then invested in China.
(3) Others.
Note 2: Net profit (loss) of the investee for the year:
(1) If it is still under preparation with no actual gain or loss, it shall be indicated in the box.
(2) The basis for recognition of the investment gains or losses is divided into the following three which shall be indicated in the box,
A. Financial statements audited and validated by an international accounting firm that has a collaborative relationship with CPA firms in Taiwan.

Table VIII, Page 1

B. Financial statements audited and validated by a certified accountant or accounting firm who work with the parent company in Taiwan.

C. Financial statement completed in-house during the same period that has not been audited by a certified accountant.

Note 3: Through Full Giant Resources Ltd. an investment is made to Arise Profits Ltd, which then conducts another re-investment.

Note 4: On September 24, 2024, the Board of Directors resolved that the subsidiary Full Giant convert its loan to the Chinese subsidiary Suqian Ruentex into equity in the amount of US$13,500 thousand.

Approval was obtained from the Department of Investment Review, Ministry of Economic Affairs on November 28, 2024. The capital increase base date was April 25, 2025. The registration of the change was completed on September 19, 2025.

Note 5: Through Full Giant Resources Ltd. an investment is made to Arise Profits Ltd. Beijing Ruentex Environmental Technology Co., Ltd. which then conducts another re-investment.

Note 6: Invest through Full Giant Resources Ltd.

Note 7: On September 24, 2024, the Company's Board of Directors resolved to approve that the subsidiary Full Giant convert its loan to the Chinese subsidiary Yuncheng Ruentex into equity, in the amount of US$8,500 thousand and CNY¥175,950 thousand.

Approval was obtained from the Department of Investment Review, Ministry of Economic Affairs on November 28, 2024. The capital increase base date was April 25, 2025, and the change registration was completed on September 19, 2025.

Note 8: The Group resolved to withdraw from the investment project of its subsidiary, Langfang, as the project could not proceed due to the lack of suitable land and overall planning considerations. The cancellation procedure was completed on March 13, 2025.

On July 22, 2025, the Ministry of Economic Affairs Investment Commission approved the revocation of the aforementioned investment (Approval No. Jing-Shou-Shen-Zi 11420125170). The investment funds have been repatriated to Full Giant.

Note 9: On September 24, 2024, the Board of Directors resolved that the subsidiary Full Giant convert its loan to the Chinese subsidiary Beijing Ruentex into equity in the amount of US$3,800 thousand.

Approval was obtained from the Department of Investment Review, Ministry of Economic Affairs on September 3, 2025. The capital increase base date was September 8, 2025. The registration of the change was completed on December 30, 2025.

Table VIII, Page 2

Company Name	Accumulated amount of remittance from Taiwan to China as of December 31, 2025	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA)	Ceiling on investments in China imposed by the Investment Commission
Beijing Ruentex Environmental Technology	$255,274	$1,838,655	(Note 10)
Co., Ltd.	(USD 8,122,000)	(USD 58,500,000)
Jiangsu Suqian Ruentex Environmental Technology Co., Ltd.	$471,450	$900,994	(Note 10)
	(USD 15,000,000)	(RMB 200,399,000)
Langfang Ruentex Environmental Technology Co., Ltd.	$47,145	$0	(Note 10)
	(USD 1,500,000)	(USD 0)
Yuncheng Ruentex Environmental Technology Co., Ltd.	$628,600	$1,671,298	(Note 10)
	(USD 20,000,000)	(RMB 371,730,000)
Rizhao Panyue Environmental Technology Co., Ltd.	$825,466	$825,466	(Note 10)
	(RMB 183,600,000)	(RMB 183,600,000)

Note 10: The limits are specified in accordance with the "Review for Conducting Investment or Technological Collaboration in China" by the Investment Commission of the Ministry of Economic Affairs. The Company has obtained an operating headquarters certificate from the Industrial Development Bureau of the Ministry of Economic Affairs, and the limit will not be applicable.

Table VIII, Page3

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Opinions

Basis for Opinions

Key Audit Issues

Correctness of Income from Waste Disposal

Description

Corresponding Audit Procedures

Other matters – Parent company only financial statements

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

Sunny Friend Environment Technology Co., Ltd. and Subsidiaries

Consolidated Statement of Changes in Equity

2. Translation of foreign operations

(V) Classification of current and non-current items

(VI) Cash equivalents

(XXIII) Employee share-based payments

(XXIV) Income taxes

2. Contract assets and contract liabilities

(XXIX) Earnings per share

VII. Related-Party Transactions

(I) Name and relationship of the related parties

(II) Significant transactions between the parties

1. Operating revenue

2. Operating costs

3. Related party receivables

4. Related party payables

(II) Financial instruments

1. Types of financial instrument

Price risk

Cash flow and fair value interest rate risk

XIII. Additional Disclosures

(I) Significant transactions information

(II) Information on investees

(III) Information on investments in China

(I) General information

(II) Measurement of segment information

(III) Information on segment profit and loss, assets and liabilities

Loans to Others

AI assistant

SF — Audit Report / Information 2025

52735_rns_2026-04-17_a1e21b48-e2f4-4509-85aa-e972b01aa71f.pdf

Opinions

Basis for Opinions

Key Audit Issues

Correctness of Income from Waste Disposal

Description

Corresponding Audit Procedures

Other matters – Parent company only financial statements

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

Sunny Friend Environment Technology Co., Ltd. and Subsidiaries

Consolidated Statement of Changes in Equity

2. Translation of foreign operations

(V) Classification of current and non-current items

(VI) Cash equivalents

(XXIII) Employee share-based payments

(XXIV) Income taxes

2. Contract assets and contract liabilities

(XXIX) Earnings per share

VII. Related-Party Transactions

(I) Name and relationship of the related parties

(II) Significant transactions between the parties

1. Operating revenue

2. Operating costs

3. Related party receivables

4. Related party payables

(II) Financial instruments

1. Types of financial instrument

Price risk

Cash flow and fair value interest rate risk

XIII. Additional Disclosures

(I) Significant transactions information

(II) Information on investees

(III) Information on investments in China

(I) General information

(II) Measurement of segment information

(III) Information on segment profit and loss, assets and liabilities

Loans to Others

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