Stock Code: 8482

Shane Global Holding Inc. and Subsidiaries

Consolidated Financial Statements and Independent Auditor’s Report

For the Years Ended 2025 and 2024

Registered Office: P.O. Box 31119, Grand Pavilion, Hibiscus Way, 802 West Bay Road, Grand Cayman KY1-1205, Cayman Islands

Contact Address: 2F., No. 97, Sec. 2, Dunhua S. Rd., Da’an Dist., Taipei City, Taiwan

Tel: (02)7711-1060

Notice to Reader

For the convenience of readers, this report has been translated into English from the original Chinese version, prepared and used in the Republic of China. The English version has not been audited or reviewed by independent auditors. If there are any discrepancies between the English version and the original Chinese version, or any difference in the interpretation of the two versions, the Chinese language report shall prevail.

Table of Contents

ITEM		PAGE	NOTES NUMBER
I.	Cover Page	1	-
II.	Table of Contents	2	-
III.	Independent Auditors' Report	3~7	-
IV.	Consolidated Balance Sheets	8	-
V.	Consolidated Statement of Comprehensive Income	9~10	-
VI.	Consolidated Statement of Changes in Equity	11	-
VII.	Consolidated Statement of Cash Flows	12~13	-
VIII.	Notes to the Consolidated Financial Statements
	(I) Company History	14	I
	(II) Date and Procedures of Authorization of Financial Statements	14	II
	(III) Application of Newly Issued and Revised Standards and Interpretations	14~17	III
	(IV) Summary of Significant Accounting Policies	17~30	IV
	(V) Significant Accounting Judgments, Estimates, and Key Sources of Uncertainty	30	V
	(VI) Details of Significant Accounts	31~60	VI~XXVII
	(VII) Related Party Transactions	61~63	XXVIII
	(VIII) Assets Pledged as Collateral	63	XXIX
	(IX) Significant Contingent Liabilities and Unrecognized Contractual Commitments	63~64	XXX
	(X) Significant Losses from Disasters	-	-
	(XI) Significant Events After the Reporting Period	-	-
	(XII) Others	65	XXXI~XXXII
	(XIII) Additional Disclosures
	1. Information on Significant Transactions	66, 70~74	XXXIII
	2. Information on Investees	66, 75	XXXIII
	3. Information on Investments in Mainland China	67, 76~77	XXXIII
	(XIV) Segment Information	67~69	XXXIV

Independent Auditors' Report

To Shane Global Holding Inc.:

Opinion

We have audited the consolidated balance sheets of Shane Global Holding Inc. and its subsidiaries (Shane Group) as of December 31, 2025 and 2024, and the related consolidated statements of comprehensive income, changes in equity, and cash flows for the years from January 1 to December 31, 2025 and 2024, and the notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, the aforementioned consolidated financial statements present fairly, in all material respects, the consolidated financial position of Shane Global Holding Inc. and its subsidiaries (the Group) as of December 31, 2025 and 2024, and their consolidated financial performance and consolidated cash flows for the years from January 1 to December 31, 2025 and 2024, in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), Interpretations, and Interpretations as endorsed and issued into effect by the Financial Supervisory Commission.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Consolidated Financial Statements section of our report. The personnel of our firm who are subject to independence requirements have maintained independence from Shane Global Holding Inc. and its subsidiaries (the Group) in accordance with the Code of Professional Ethics for Certified Public Accountants, and have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of Shane Global Holding Inc. and its subsidiaries (the Group) for the year ended 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 matters.

The key audit matters for the audit of the Group’s consolidated financial statements for the year ended 2025 are described as follows:

Occurrence of Revenue

Revenue from sales to a specific customer of the Group for the year ended 2025 showed fluctuations exceeding the average changes in the Group’s overall revenue and involved significant amounts, thereby having a material impact on the Group’s financial performance. Accordingly, the occurrence of revenue transactions with this specific customer was identified as a key audit matter. Please refer to Note 4 to the consolidated financial statements for the accounting policy on revenue recognition.

Our audit procedures in respect of the aforementioned specific customer included the following:

We obtained an understanding of the internal control system and operating procedures related to sales transactions, and designed and performed tests of controls responsive to the occurrence of revenue, in order to evaluate whether the design and operating effectiveness of the relevant internal controls over sales transactions were effective.
We selected samples from the sales details of the specific customer and examined sales invoices, delivery notes, and subsequent receipts to verify the occurrence of revenue.

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

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

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

Those charged with governance of the Group (including the Audit Committee) are responsible for overseeing the financial reporting process.

Auditor's Responsibilities for the Audit of the Consolidated Financial Statements

The objectives of our audit are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error. They 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.

In performing an audit in accordance with auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also perform the following procedures:

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 sufficient and appropriate audit evidence to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
5 -

Conclude, based on the audit evidence obtained, on the appropriateness of management’s use of the going concern basis of accounting, and whether a material uncertainty exists related to events or conditions that might cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure, and content of the consolidated financial statements (including related notes), and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient and appropriate audit evidence regarding the financial information of entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision, and performance of the group audit engagement and for forming the group 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 the personnel of our firm who are subject to independence requirements have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and, where applicable, the related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of Shane Global Holding Inc. and its subsidiaries (the Group) for the year ended 2025 and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about a 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 communications.

Deloitte Taiwan

CPA Chang, Keng-Hsi

CPA Liu, Li-Wei

Approved by the Securities and Futures Commission
Tai-Cai-Zheng-Liu-Zi No. 0920123784

Approval No. by Financial Supervisory Commission
Jing-Guan-Zheng-Shen No. 1110348898

March 27, 2026

Shane Global Holding Inc. and Subsidiaries
Consolidated Balance Sheets
December 31, 2025 and 2024

Unit: NT$ thousand

Code	Assets	December 31, 2025		December 31, 2024
		Amount	%	Amount	%
Current Assets
1100	Cash and cash equivalents (Notes 4 and 6)	$ 668,880	14	$ 1,112,760	22
1136	Financial assets at amortized cost – current (Notes 4, 7, 8 and 29)	236,627	5	13,146	-
1170	Accounts receivable (Notes 4, 9, and 21)	601,669	13	569,748	11
1200	Other receivable (Notes 4, 9, and 27)	30,358	1	32,142	1
1220	Current income tax assets (Notes 4 and 23)	2,641	-	2,728	-
130X	Inventories (Notes 4 and 10)	611,906	13	594,188	12
1421	Prepayments (Note 16)	55,976	1	54,390	1
11XX	Total current assets	2,208,057	47	2,379,102	47
Non-current Assets
1600	Property, plant, and equipment (Notes 4, 12, and 29)	2,129,153	46	2,347,314	46
1755	Right-of-use assets (Notes 4, 13, and 29)	305,286	7	347,683	7
1805	Goodwill (Notes 4 and 14)	8,107	-	8,456	-
1821	Other intangible assets (Notes 4 and 15)	4,055	-	5,562	-
1840	Current income tax assets (Notes 4 and 23)	21,861	-	21,906	-
1990	Other non-current assets (Notes 4 and 16)	5,165	-	3,481	-
15XX	Total non-current assets	2,473,627	53	2,734,402	53
1XXX	Total assets	$ 4,681,684	100	$ 5,113,504	100
Code	Liabilities and Equity
Current Liabilities
2100	Short-term borrowings (Notes 17 and 28)	$ 245,154	5	$ -	-
2130	Contractual liabilities - current (Notes 4 and 21)	23,793	1	33,665	1
2150	Notes payable	89	-	63	-
2170	Accounts payable	281,702	6	267,737	5
2180	Accounts payable - related parties (Note 28)	16,037	-	8,679	-
2200	Other payables (Notes 18 and 25)	498,052	11	491,412	10
2230	Current income tax liabilities (Notes 4 and 23)	432,821	9	484,122	10
2280	Lease liabilities - current (Notes 4, 13 and 28)	8,307	-	18,766	-
2320	Current portion of long-term borrowings (Notes 17 and 29)	1,466	-	1,474	-
2399	Other current liabilities (Note 18)	2,947	-	2,762	-
21XX	Total current liabilities	1,510,368	32	1,308,680	26
Non-current Liabilities
2540	Long-term borrowings (Notes 17 and 29)	11,823	1	13,869	-
2570	Deferred income tax liabilities (Notes 4 and 23)	9	-	128	-
2580	Lease Liabilities - non-current (Notes 4, 13 and 28)	903	-	9,230	-
2600	Other non-current liabilities (Note 18)	1,333	-	903	-
25XX	Total non-current liabilities	14,068	1	24,130	-
2XXX	Total liabilities	1,524,436	33	1,332,810	26
Equity attributable to owners of the Company (Notes 4 and 20)
Share capital
3110	Ordinary shares	1,074,440	23	1,074,440	21
3200	Capital surplus	1,268,739	27	1,268,739	25
Retained earnings
3310	Legal reserve	600,457	13	552,674	11
3320	Special reserve	80,128	2	284,350	5
3350	Unappropriated earnings	537,804	11	597,200	12
3300	Total retained earnings	1,218,389	26	1,434,224	28
3400	Other equity	(219,886)	(5)	(80,128)	(2)
3500	Treasury shares	(262,436)	(5)
31XX	Total equity attributable to owners of the Company	3,079,246	66	3,697,275	72
36XX	Non-controlling Interests (Notes 4 and 20)	78,002	1	83,419	2
3XXX	Total equity	3,157,248	67	3,780,694	74
Total liabilities and equity		$ 4,681,684	100	$ 5,113,504	100

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

Chairman: Hsieh, Chih-Tung
President: Hsieh, Shu-Yun
Chief Accounting Officer: Chiang, Yun-Ju

Shane Global Holding Inc. and Subsidiaries
Consolidated Statement of Comprehensive Income
From January 1 to December 31, 2025 and 2024
Unit: NT$ thousand, except earnings per share in NT$

Code		2025		2024
		Amount	%	Amount	%
4100	Operating revenue (Notes 4, 21, and 28)
	Sales revenue	$ 3,424,960	100	$ 3,695,415	100
5110	Operating costs (Notes 10, 22, and 28)
	Cost of goods sold	( 2,326,972 )	( 68 )	( 2,423,688 )	( 66 )
5900	Gross profit	1,097,988	32	1,271,727	34
6100	Operating expenses (Note 22)
	Selling expenses	( 278,724 )	( 8 )	( 248,036 )	( 7 )
6200	Administrative expenses	( 446,016 )	( 13 )	( 494,848 )	( 13 )
6300	Research and development expenses	( 79,426 )	( 2 )	( 93,219 )	( 2 )
6450	Reversal of expected credit loss (Notes 4 and 9)	4,472	-	2,360	-
6000	Total operating expenses	( 799,694 )	( 23 )	( 833,743 )	( 22 )
6900	Operating profit	298,294	9	437,984	12
7100	Non-operating income and expenses (Notes 4 and 22)
	Interest income	15,321	1	9,800	-
7010	Other income	46,501	1	45,230	1
7020	Other gains and losses	( 28,241 )	( 1 )	49,905	2
7050	Financial costs (Note 28)	( 6,122 )	-	( 2,438 )	-
7000	Total non-operating income and expenses	27,459	1	102,497	3

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Code		2025		2024
		Amount	%	Amount	%
7900	Profit before income tax from continuing operations	$ 325,753	10	$ 540,481	15
7950	Income tax expense (Notes 4 and 23)	( 86,251 )	( 3 )	( 69,078 )	( 2 )
8200	Net profit for the year	239,502	7	471,403	13
	Other comprehensive income (Notes 4 and 20)
8310	Items that will not be reclassified subsequently to profit or loss:
8341	Exchange differences on translation into the presentation currency	( 170,857 )	( 5 )	232,789	6
8360	Items that may be reclassified subsequently to profit or loss:
8361	Exchange differences on translation of foreign operations' financial statements	28,506	1	( 24,030 )	( 1 )
8300	Other comprehensive income for the year, net of tax	( 142,351 )	( 4 )	208,759	5
8500	Total comprehensive income for the Year	$ 97,151	3	$ 680,162	18
	Profit (loss) attributable to:
8610	Owners of the Company	$ 242,326	7	$ 468,014	13
8620	Non-controlling interests	( 2,824 )	-	3,389	-
8600		$ 239,502	7	$ 471,403	13
	Total comprehensive income attributable to:
8710	Owners of the Company	$ 102,568	3	$ 672,236	18
8720	Non-controlling interests	( 5,417 )	-	7,926	-
8700		$ 97,151	3	$ 680,162	18
	Earnings per share (Note 24) From continuing operations
9710	Basic	$ 2.30		$ 4.36
9810	Diluted	$ 2.30		$ 4.35

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

Chairman: Hsieh, Chih-Tung

Manager: Hsieh, Shu-Yun

Chief Accounting Officer: Chiang, Yun-Ju

Shane Global Holding Inc. and Subsidiaries
Consolidated Statement of Changes in Equity
For the Years Ended December 31, 2025 and 2024

Unit: NT$ thousand

Code		Equity attributable to owners of the Company
		Share capital	Capital surplus	Legal reserve	Special reserve	Unappropriated earnings	Other equity items
Exchange differences on translation of foreign operations' financial statements	Treasury shares	Total	Non-controlling interests	Total equity
A1	Balance as of January 1, 2024	$ 1,104,440	$1,304,213	$ 522,256	$ 258,128	$ 790,878	($ 284,350)	($ 423,405)	$ 3,272,160	$ 75,493	$ 3,347,653
	Appropriation and distribution of 2023 earnings (Note 20)
B1	Legal reserve	-	-	30,418	-	( 30,418 )	-	-	-	-	-
B3	Special reserve	-	-	-	26,222	( 26,222 )	-	-	-	-	-
B5	Cash dividends to shareholders of the Compan	-	-	-	-	( 247,121 )	-	-	( 247,121 )	-	( 247,121 )
L3	Cancellation of treasury shares (Note 20)	( 30,000 )	( 35,474 )	-	-	( 357,931 )	-	423,405	-	-	-
D1	Net profit for 2024	-	-	-	-	468,014	-	-	468,014	3,389	471,403
D3	Other comprehensive income for 2024, net of tax	-	-	-	-	-	204,222	-	204,222	4,537	208,759
D5	Total comprehensive income for 2024	-	-	-	-	468,014	204,222	-	672,236	7,926	680,162
Z1	Balance as of December 31, 2024	1,074,440	1,268,739	552,674	284,350	597,200	( 80,128 )	-	3,697,275	83,419	3,780,694
	Appropriation and distribution of 2024 earnings (Note 20)
B1	Legal reserve	-	-	47,783	-	( 47,783 )	-	-	-	-	-
B17	Reversal of special reserve	-	-	-	( 204,222 )	204,222	-	-	-	-	-
B5	Cash dividends to shareholders of the Compan	-	-	-	-	( 458,161 )	-	-	( 458,161 )	-	( 458,161 )
D1	Profit (loss) for 2025	-	-	-	-	242,326	-	-	242,326	( 2,824 )	239,502
D3	Other comprehensive income for 2024, net of tax	-	-	-	-	-	( 139,758 )	-	( 139,758 )	( 2,593 )	( 142,351 )
D5	Total comprehensive income for 2025	-	-	-	-	242,326	( 139,758 )	-	102,568	( 5,417 )	97,151
L1	Purchase of treasury shares (Note 20)	-	-	-	-	-	-	( 262,436 )	( 262,436 )	-	( 262,436 )
Z1	Balance as of December 31, 2025	$ 1,074,440	$ 1,268,739	$ 600,457	$ 80,128	$ 537,804	($ 219,886)	($ 262,436)	$ 3,079,246	$ 78,002	$ 3,157,248

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

Chairman: Hsieh, Chih-Tong
Manager: Hsieh, Shu-Yun
Chief Accounting Officer:Chiang, Yun-Ju

Shane Global Holding Inc. and Subsidiaries

Consolidated Statement of Cash Flows

For the Years Ended December 31, 2025 and 2024

Code	Cash flow from operating activities	2025	2024
A10000	Profit before income tax for the year	$ 325,753	$ 540,481
A20010	Adjustments for non-cash items:
A20100	Depreciation expense	210,647	219,607
A20200	Amortization expense	1,366	1,604
A20300	Reversal of expected credit loss	( 4,472 )	( 2,360 )
A20900	Financial costs	6,122	2,438
A21200	Interest income	( 15,321 )	( 9,800 )
A22500	Loss (gain) on disposal of property, plant and equipment	1,460	( 31,044 )
A23700	Inventory write-downs and obsolescence losses	44,977	45,805
A24100	Net foreign exchange losses	4,732	443
A30000	Net changes in operating assets and liabilities
A31130	Notes receivable	-	80
A31150	Accounts receivable	( 55,540 )	( 139,217 )
A31180	Other receivables	4,113	10,946
A31200	Inventories	( 89,660 )	( 71,329 )
A31230	Prepayments	( 3,803 )	27,058
A32125	Contractual liabilities	( 8,413 )	5,671
A32130	Notes payable	28	( 83 )
A32150	Accounts payable	24,916	66,938
A32160	Accounts payable - related parties	7,655	( 8,321 )
A32180	Other payables	27,208	9,626
A32230	Other current liabilities	297	( 3,053 )
A33000	Cash generated from operations	482,065	665,490
A33100	Interest received	11,693	9,524
A33300	Interest paid	( 5,441 )	( 2,438 )
A33500	Income taxes paid	( 117,808 )	( 91,484 )
AAAA	Net cash flows from operating activities	370,509	581,092
Cash flows from investing activities
B00040	Acquisition of financial assets at amortized cost	( 234,671 )	( 17,362 )
B00050	Disposal of financial assets at amortized cost	12,775	15,902
B02700	Acquisition of property, plant, and equipment	( 51,442 )	( 89,349 )

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Code		2025	2024
B02800	Proceeds from the disposal of property, plant, and equipment	$ -	$ 52,391
B03700	Increase in refundable deposits	( 308 )	( 135 )
B07100	Increase in prepayments for equipment	( 1,950 )	( 438 )
BBBB	Net cash outflow from investing activities	( 275,596 )	( 38,991 )
	Cash flows from financing activities
C00100	Increase in short-term borrowings	243,532	-
C01700	Repayment of long-term borrowings	( 1,408 )	( 1,365 )
C03000	Receipt of guarantee deposits received	437	-
C03100	Refund of guarantee deposits received	-	( 105 )
C04020	Repayment of principal portion of lease liabilities	( 18,190 )	( 17,131 )
C04500	Dividends paid to owners of the Company	( 458,161 )	( 247,121 )
C04900	Purchase of treasury shares	( 262,436 )	-
CCCC	Net cash outflow from financing activities	( 496,226 )	( 265,722 )
DDDD	Effect of exchange rate changes on cash and cash equivalents	( 42,567 )	35,145
EEEE	Net decrease (increase) in cash and cash equivalents	( 443,880 )	311,524
E00100	Beginning balance of cash and cash equivalents	1,112,760	801,236
E00200	Ending balance of cash and cash equivalents	$ 668,880	$ 1,112,760

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

Chairman: Hsieh, Chih-Tung Manager: Hsieh, Shu-Yun Chief Accounting Officer: Chiang, Yun-Ju

Shane Global Holding Inc. and Subsidiaries
Notes to the Consolidated Financial Statements
For the Years Ended December 31, 2025 and 2024
(Unless otherwise specified, amounts are in thousands of New Taiwan dollars)

I. Company History

Shane Global Holding Inc. (the “Company”) was incorporated in the Cayman Islands on September 30, 2014, primarily as a holding company for the organizational restructuring undertaken in connection with the application for listing on the Taiwan Stock Exchange. On December 18, 2014, the Company issued new shares in exchange for a 100% equity interest in Shayne International Holdings Limited, thereby completing the organizational restructuring and becoming the holding company of all consolidated entities thereafter. The Company and its subsidiaries (collectively, the “Group”) are principally engaged in the manufacture and sale of sofas, sofa covers, other leather products, and cartons.

The Company’s shares have been listed on the Taiwan Stock Exchange since August 15, 2018.

The functional currency of the Company is the U.S. dollar. As the Company’s shares are listed in Taiwan, these consolidated financial statements are presented in New Taiwan dollars to enhance comparability and consistency in financial reporting.

II. Date and Procedures of Authorization of Financial Statements

This consolidated financial statements were approved by the Board of Directors on March 12, 2026.

III. Application of Newly Issued and Revised Standards and Interpretations

(I) Initial Application of the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), Interpretations (IFRIC), and Interpretations Committee Interpretations (SIC) (collectively, the “IFRS Accounting Standards”) Endorsed and Issued into Effect by the Financial Supervisory Commission (the “FSC”)

The application of the amended IFRS Accounting Standards endorsed and issued into effect by the FSC during the current year did not have a material impact on the Group’s accounting policies.

14 -

(II) IFRS Accounting Standards Endorsed by the FSC for Application in 2026

Newly Issued / Amended / Revised Standards and Interpretations	Effective Date Issued by IASB
Amendments to IFRS 9 and IFRS 7, "Amendments to the Classification and Measurement of Financial Instruments"	January 1, 2026
Amendments to IFRS 9 and IFRS 7, "Contracts Referencing Nature-dependent Electricity"	January 1, 2026
"Annual Improvements to IFRS Accounting Standards - Volume 11"	January 1, 2026
IFRS 17 "Insurance Contracts" (including the 2020 and 2021 amendments)	January 1, 2023

As of the date these consolidated financial statements were authorized for issue, the Group has assessed that the above amendments to the standards will not have a material impact on the Group's consolidated financial position or consolidated financial performance.

(III) IFRS Accounting Standards Issued by the IASB but Not Yet Endorsed and Issued into Effect by the FSC

Newly Issued / Amended / Revised Standards and Interpretations	Effective Date of Issuance by IASB (Note 1)
Amendment to IFRS 10 and IAS 28, "Sale or Contribution of Assets between an Investor and its Associates or Joint Ventures"	To be determined
IFRS 18, "Presentation and Disclosure in Financial Statements"	January 1, 2027 (Note 2)
IFRS 19, "Subsidiaries without Public Accountability: Disclosures" (including the 2025 amendments)	January 01, 2027
Amendments to IAS 21, "Lack of Exchangeability"	January 01, 2027

Note 1: Unless otherwise specified, the above newly issued / amended / revised standards or interpretations shall become effective for annual reporting periods beginning on or after their respective effective dates.

Note 2: On September 25, 2025, the FSC announced that enterprises in Taiwan shall adopt IFRS 18 starting January 1, 2028. Early adoption will also be permitted after IFRS 18 is endorsed by the FSC.

IFRS 18, "Presentation and Disclosure in Financial Statements" and Related Consequential Amendments

IFRS 18 will replace IAS 1 "Presentation of Financial Statements." The major changes under the standard include the following:

The Group shall assess whether it engages in specific main operating activities by investing in certain types of assets and providing financing to customers in order to classify items of income and expenses in the statement of profit or loss into the operating, investing, financing, income taxes, and discontinued operations categories.
The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing and income taxes and profit or loss.
Guidance is provided to strengthen the requirements for aggregation and disaggregation. The Group is required to identify assets, liabilities, equity, income, expenses, and cash flows arising from individual transactions or other events, and classify and aggregate them based on shared characteristics so that each line item presented in the primary financial statements has at least one similar characteristic. Items with dissimilar characteristics shall be disaggregated in the primary financial statements and notes. The Group shall use the label “other” for such items only when a more informative label cannot be identified.
Additional disclosures are required for management-defined performance measures. When the Group communicates management’s view of an aspect of the Group’s overall financial performance in public communications outside the financial statements and to users of the financial statements, the Group shall disclose, in a single note to the financial statements, information relating to management-defined performance measures, including a description of the measure, how it is calculated, reconciliations to subtotals or totals specified by IFRS Accounting Standards, and the income tax and non-controlling interest effects of related reconciling items.

In addition, the following consequential amendments have been made to IAS 7 “Statement of Cash Flows”:

When the Group prepares cash flow from operating activities using the indirect method, operating profit or loss should be used as the starting point for reconciliation.
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Interest and dividends received by the Group should be classified as investing activities, while interest and dividends paid should be classified as financing activities. If, upon assessment, the Group is determined to have specific main business activities, it shall consider the categories in which dividend income, interest income, and interest expense are presented in the statement of profit or loss in determining the classification of dividends received, interest received, and interest paid in the statement of cash flows. However, each of the aforementioned cash flows may be classified in only one category of activities in the statement of cash flows.

Except for the impacts described above, as of the date these consolidated financial statements were authorized for issue, the Group is still evaluating the other impacts of the amendments to the standards and interpretations on the Group's consolidated financial position and consolidated financial performance. The related impacts will be disclosed upon completion of the assessment.

IV. Summary of Significant Accounting Policies

(I) Statement of Compliance

These consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the IFRS Accounting Standards endorsed and issued into effect by the FSC.

(II) Basis of Preparation

These consolidated financial statements have been prepared on the historical cost basis.

(III) Classification of Current and Non-current Assets and Liabilities

Current assets include:

Assets held primarily for the purpose of trading;
Assets expected to be realized within 12 months after the balance sheet date; and
Cash and cash equivalents, unless the asset is restricted from being exchanged or used to settle a liability for at least 12 months after the balance sheet date.

Current liabilities include:

Liabilities held primarily for the purpose of trading;
Liabilities due to be settled within 12 months after the balance sheet date; and

Liabilities for which the Group does not have an unconditional right at the balance sheet date to defer settlement for at least 12 months after the balance sheet date.

Assets and liabilities that are not classified as current assets or current liabilities are classified as non-current assets or non-current liabilities.

(IV) Basis of Consolidation

These consolidated financial statements incorporate the financial statements of the Company and the entities controlled by the Company (subsidiaries). The consolidated statements of comprehensive income include the operating results of subsidiaries acquired or disposed of during the current period from the acquisition date to the disposal date. The financial statements of the subsidiaries have been adjusted to align their accounting policies with those of the Company. All intercompany transactions, account balances, income, and expenses have been eliminated in full upon consolidation. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance.

Changes in the Group's ownership interests in subsidiaries that do not result in a loss of control are accounted for as equity transactions. The carrying amounts of the Group's interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to the owners of the Company.

Details of subsidiaries, shareholding percentages, and principal business activities are disclosed in Note 11, Schedule 6, and Schedule 7.

(V) Foreign Currencies

In preparing the financial statements of each entity, transactions denominated in currencies other than the entity's functional currency (foreign currencies) are translated into the functional currency using the exchange rates prevailing at the transaction dates.

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Monetary items denominated in foreign currencies are translated at the closing exchange rates at each balance sheet date. Exchange differences arising on the settlement or on translating of monetary items are recognized in profit or loss in the period in which they arise.

Non-monetary items measured at historical cost that are denominated in foreign currencies are translated at the exchange rates prevailing on the transaction dates and are not retranslated.

In preparing the consolidated financial statements, the assets and liabilities of the Company and its foreign operations (including subsidiaries or branches operating in countries or using currencies different from those of the Company) are translated into U.S. dollars using the exchange rates prevailing at each balance sheet date. Income and expense items are translated using the average exchange rates for the period and are further translated into New Taiwan dollars for presentation purposes in the consolidated financial statements. The resulting exchange differences are recognized in other comprehensive income and attributed separately to the owners of the Company and the non-controlling interests. Exchange differences arising from the translation of the functional currency into the presentation currency are not subsequently reclassified to profit or loss.

Goodwill arising from the acquisition of foreign operations and fair value adjustments to the carrying amounts of assets and liabilities arising from such acquisitions are treated as assets and liabilities of the foreign operations and translated using the closing exchange rates at each balance sheet date. The resulting exchange differences are recognized in other comprehensive income.

(VI) Inventories

Inventories includes raw materials, finished goods, and work in progress. Inventories are measured at the lower of cost and net realizable value. The comparison between cost and net realizable value is made on an individual item basis, except for inventories of the same category. Net realizable value represents the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. The cost of inventories is determined using the weighted-average method.

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(VII) Property, Plant, and Equipment

Property, plant and equipment are initially recognized at cost and subsequently measured at cost less accumulated depreciation and accumulated impairment losses

Property, plant and equipment under construction are recognized at cost less accumulated impairment losses. Cost includes professional service fees. Such assets are classified into the appropriate categories of property, plant and equipment and depreciation commences when the assets are completed and ready for their intended use.

Depreciation on property, plant and equipment is recognized on a straight-line basis over the estimated useful lives of the respective significant components of the assets. The Group reviews the estimated useful lives, residual values, and depreciation methods at least at each year-end, and the effects of changes in accounting estimates are accounted for on a prospective basis.

Upon derecognition of property, plant and equipment, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss.

(VIII) Goodwill

Goodwill acquired in a business combination is initially recognized at the amount recognized on the acquisition date and is subsequently measured at cost less accumulated impairment losses.

For the purpose of impairment testing, goodwill is allocated to each cash-generating unit or group of cash-generating units (collectively, the "cash-generating units") that is expected to benefit from the synergies of the combination.

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Cash-generating units to which goodwill has been allocated are tested for impairment annually (and whenever there is an indication that the unit may be impaired) by comparing the carrying amount of the unit, including goodwill, with its recoverable amount. If the goodwill allocated to a cash-generating unit is acquired in a business combination during the current year, the unit shall be tested for impairment before the end of the current year. If the recoverable amount of the cash-generating unit to which goodwill has been allocated is less than its carrying amount, the impairment loss is first allocated to reduce the carrying amount of the goodwill allocated to the unit, and then to the other assets of the unit on a pro rata basis according to the carrying amount of each asset in the unit. Any impairment loss is recognized directly in profit or loss for the current period. Impairment losses recognized for goodwill shall not be reversed in subsequent periods.

Upon disposal of an operation within a cash-generating unit to which goodwill has been allocated, the amount of goodwill attributable to the disposed operation is included in the carrying amount of the operation when determining the gain or loss on disposal.

(IX) Intangible Assets

Separately Acquired

Intangible assets with finite useful lives that are acquired separately are initially measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment losses. Intangible assets are amortized on a straight-line basis over their estimated useful lives. The Group reviews the estimated useful lives, residual values, and amortization methods at least at each year-end, and the effects of changes in accounting estimates are accounted for on a prospective basis.

Derecognition

Upon derecognition of an intangible asset, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss for the current period.

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(X) Impairment of Property, Plant and Equipment, Right-of-use Assets, and Intangible Assets (Excluding Goodwill) The Group assesses at each balance sheet date whether there is any indication that property, plant and equipment, right-of-use assets, and intangible assets (excluding goodwill) may be impaired. If any such indication exists, the recoverable amount of the asset is estimated. If the recoverable amount of an individual asset cannot be estimated, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. Corporate assets are allocated to the smallest group of cash-generating units on a reasonable and consistent basis.

The recoverable amount is the higher of the fair value fewer selling costs and its value in use. If the recoverable amount of an individual asset or cash-generating unit is lower than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount, and the impairment loss is recognized in profit or loss.

When an impairment loss is subsequently reversed, the carrying amount of the asset or cash-generating unit is increased to the revised recoverable amount. However, the increased carrying amount shall not exceed the carrying amount that would have been determined (net of amortization or depreciation) had no impairment loss been recognized for the asset or cash-generating unit in prior years. A reversal of an impairment loss is recognized in profit or loss.

(XI) Financial Instruments

Financial assets and financial liabilities are recognized in the consolidated balance sheets when the Group becomes a party to the contractual provisions of the instruments.

Upon initial recognition of financial assets and financial liabilities, if the financial assets or financial liabilities are not measured at fair value through profit or loss, they are measured at fair value plus transaction costs that are directly attributable to the acquisition or issuance of the financial assets or financial liabilities. Transaction costs directly attributable to the acquisition or issuance of financial assets or financial liabilities measured at fair value through profit or loss are recognized immediately in profit or loss.

Financial Assets

Regular way purchases or sales of financial assets are recognized and derecognized using trade date accounting.

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(1) Categories of Measurement

The financial assets held by the Group are classified as financial assets measured at amortized cost.

Financial Assets Measured at Amortized Cost

Financial assets invested in by the Group are classified as measured at amortized cost if both of the following conditions are met:

A. The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and

B. The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets measured at amortized cost (including cash and cash equivalents, financial assets at amortized cost – current, accounts receivable, other receivables (excluding tax refund receivables), and refundable deposits) are subsequently measured at amortized cost, which equals the gross carrying amount determined using the effective interest method less any impairment loss. Any foreign exchange gains or losses are recognized in profit or loss.

Interest income is calculated by applying the effective interest rate to the gross carrying amount of the financial asset.

Cash equivalents include time deposits with original maturities of three months or less that are highly liquid, readily convertible to known amounts of cash, and subject to an insignificant risk of changes in value, and are held for the purpose of meeting short-term cash commitments.

(2) Impairment of Financial Assets

At each balance sheet date, the Group assesses the impairment losses of financial assets measured at amortized cost (including cash and cash equivalents, financial assets at amortized cost – current, accounts receivable, other receivables (excluding tax refund receivables), and refundable deposits) based on expected credit losses.

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Loss allowances for accounts receivable are recognized based on lifetime expected credit losses. For other financial assets, the Group first assesses whether the credit risk has increased significantly since initial recognition. If the credit risk has not increased significantly, the loss allowance is recognized based on 12-month expected credit losses. If the credit risk has increased significantly, the loss allowance is recognized based on lifetime expected credit losses.

Expected credit loss represent the weighted average of credit losses weighted by the respective risks of default. Twelve-month expected credit losses represent the expected credit losses resulting from possible default events on a financial instrument within 12 months after the reporting date, while lifetime expected credit losses represent the expected credit losses resulting from all possible default events over the expected life of the financial instrument.

For internal credit risk management purposes, the Group considers the following circumstances, without taking into account any collateral held, as constituting an event of default for a financial asset:

A. Internal or external information indicates that the debtor is unlikely to repay its obligations; or
B. The financial asset is more than 270 days past due, unless reasonable and supportable information demonstrates that a more appropriate default criterion should be applied.

Impairment losses on all financial assets are recognized either directly by reducing the carrying amount of the financial asset or through an allowance account, except for loss allowances on investments in debt instruments measured at fair value through other comprehensive income, which are recognized in other comprehensive income and do not reduce the carrying amount of the financial asset.

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(3) Derecognition of Financial Assets

The Group derecognizes a financial asset only when the contractual rights to the cash flows from the financial asset expire, or when the financial asset has been transferred and substantially all the risks and rewards of ownership of the asset have been transferred to another entity.

Upon derecognition of a financial asset measured at amortized cost in its entirety, the difference between the asset’s carrying amount and the consideration received is recognized in profit or loss.

Equity Instruments

Debt and equity instruments issued by the Group are classified as financial liabilities or equity based on the substance of the contractual agreements and the definitions of financial liabilities and equity instruments.

Equity instruments issued by the Group are recognized at the proceeds received, net of direct issuance costs.

Reacquired equity instruments of the Company are recognized and deducted within equity. Their carrying amounts are calculated using the weighted-average method by share type and accounted for separately based on the reasons for reacquisition. No gain or loss is recognized in profit or loss on the purchase, sale, issuance, or cancellation of the Company’s own equity instruments.

Financial Liabilities

(1) Subsequent Measurement

Financial liabilities are subsequently measured at amortized cost using the effective interest method, except for short-term payables when the recognition of interest is immaterial.

(2) Derecognition of Financial Liabilities

Upon derecognition of a financial liability, the difference between the carrying amount of the financial liability and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.

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(XII) Revenue Recognition

After identifying the performance obligations of contracts with the customers, the Group allocates the transaction price to the performance obligations and recognizes revenue when performance obligations are met.

Revenue from the Sale of Goods

Revenue from the sale of goods is primarily derived from the sale of sofas, sofa covers, other leather products, and cartons. As customers obtain the right to determine the price and use of sofas, sofa covers, other leather products, and cartons upon shipment, bear the primary responsibility for resale, and assume the risks of obsolescence, the Group recognizes revenue and accounts receivable at that point in time. Advance receipts from sales are recognized as contract liabilities prior to the shipment of products.

For processing arrangements involving supplied materials, control over the ownership of the processed products is not transferred; therefore, no revenue is recognized when the materials are supplied.

(XIII) Leases

The Group assesses whether a contract is, or contains, a lease at the inception of the contract.

For contracts containing both lease and non-lease components, the Group allocates the consideration in the contract to each component on the basis of their relative stand-alone prices and accounts for them separately.

The Group as Lessee

Except for lease payments for leases of low-value underlying assets and short-term leases, which are recognized as expenses on a straight-line basis over the lease terms under the recognition exemption, the Group recognizes right-of-use assets and lease liabilities for all other leases at the commencement date.

Right-of-use assets are initially measured at cost, comprising the initial measurement of the lease liabilities, lease payments made before the commencement date less any lease incentives received, initial direct costs, and estimated costs for restoring the underlying assets. Subsequently, right-of-use assets are measured at cost less accumulated depreciation and accumulated impairment losses, and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are presented separately in the consolidated balance sheet.

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Right-of-use assets are depreciated on a straight-line basis from the commencement date to the earlier of the end of the useful life of the underlying asset or the end of the lease term.

Lease liabilities are initially measured at the present value of the lease payments. If the interest rate implicit in the lease can be readily determined, the lease payments are discounted using that interest rate. If the interest rate implicit in the lease cannot be readily determined, the lessee’s incremental borrowing rate is used.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, and interest expense is allocated over the lease term. If changes in the lease term result in changes in future lease payments, the Group remeasures the lease liabilities with a corresponding adjustment to the right-of-use assets. However, if the carrying amount of the right-of-use assets has been reduced to zero, the remaining remeasurement amount is recognized in profit or loss. Lease liabilities are presented separately in the consolidated balance sheet.

Variable lease payments that do not depend on an index or a rate are recognized as expenses in the periods in which they are incurred.

(XIV) Borrowing Costs

All borrowing costs are recognized in profit or loss in the period in which they are incurred.

(XV) Government Grants

Government grants are recognized only when there is reasonable assurance that the Group will comply with the conditions attached to the grants and that the grants will be received.

Government grants related to income are recognized in other income on a systematic basis over the periods in which the Group recognizes as expenses the related costs that the grants are intended to compensate.

Government grants that are receivable as compensation for expenses or losses already incurred, or for the purpose of giving immediate financial support to the Group with no future related costs, are recognized in profit or loss in the period in which they become receivable.

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(XVI) Employee Benefits

Short-term Employee Benefits

Liabilities related to short-term employee benefits are measured at the undiscounted amount expected to be paid in exchange for employee services.

Post-employment Benefits

Contributions to defined contribution retirement plans are recognized as expenses during the periods in which employees render services.

(XVII) Share-based Payment Arrangements

Equity-settled Share-based Payment Arrangements Granted to Employees

Equity-settled share-based payment arrangements are recognized as expenses on a straight-line basis over the vesting period based on the fair value of the equity instruments at the grant date and the best estimate of the number of equity instruments expected to vest, with a corresponding adjustment to capital surplus – employee share options. If the equity instruments vest immediately on the grant date, the expense is recognized in full on the grant date.

(XVIII) Treasury Shares

When the Company repurchases its issued shares as treasury shares, the shares are recorded based on the cost paid. If the shares are received as a donation, they are recorded at fair value and presented as a deduction from equity.

Upon disposal of treasury shares, if the disposal price exceeds the carrying amount, the difference is adjusted to “capital surplus – treasury shares.” If the disposal price is lower than the carrying amount, the difference is offset against capital surplus arising from treasury share transactions of the same type; any insufficiency is charged against retained earnings.

Upon cancellation of treasury shares, “treasury shares” are eliminated, and “capital surplus – share premium” and “share capital” are reduced in proportion to the shareholding percentage. If the carrying amount of the treasury shares exceeds the combined balance of “share capital” and “capital surplus – share premium,” the excess is offset against capital surplus arising from treasury share transactions of the same type, and any remaining amount is charged against retained earnings. Conversely, if the carrying amount is lower than the combined balance, the difference is adjusted to capital surplus arising from treasury share transactions of the same type.

(XIX) Income Taxes

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Income tax expenses are the sum of current income tax and deferred income tax.

Current Income Tax

The Group determines current income (loss) in accordance with the regulations established by each tax jurisdiction in which income tax returns are filed, and accordingly calculates the income tax payable (recoverable).

Adjustments to income tax payable relating to prior years are recognized in current income tax.

Deferred Income Tax

Deferred income tax is calculated based on temporary differences arising from the carrying amounts of assets and liabilities and the tax basis for calculating taxable income.

Deferred income tax liabilities are generally recognized for all taxable temporary differences, while deferred income tax assets are recognized to the extent that it is probable that taxable income will be available against which deductible temporary differences and tax loss carryforwards can be utilized.

Deferred income tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

The carrying amount of deferred income tax assets is reviewed on each balance sheet date, and the carrying amount is reduced for those that are no longer likely to have sufficient taxable income to recover all or part of their assets. Deferred income tax assets previously unrecognized are also reviewed at each balance sheet date and recognized to the extent that it has become probable that future taxable income will allow all or part of the deferred income tax assets to be recovered.

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the

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asset is realized, based on tax rates and tax laws that have been legislated or substantively legislated by the balance sheet date. The measurement of deferred income tax liabilities and assets reflects the rent consequences that would result from the manner in which the Group expects to recover or settle the carrying amounts of its assets and liabilities at the balance sheet date.

Current and Deferred Income Tax

Current and deferred income taxes are recognized in profit or loss, except when they relate to items recognized in other comprehensive income or directly in equity, in which case the current and deferred income taxes are recognized in other comprehensive income or directly in equity, respectively.

V. Significant Accounting Judgments, Estimates, and Key Sources of Uncertainty

In applying the Group’s accounting policies, management is required to make judgments, estimates, and assumptions based on historical experience and other relevant factors when relevant information is not readily available from other sources. Actual results may differ from these estimates.

In developing significant accounting estimates, the Group has taken into consideration the possible impacts of climate change and related government policies and regulations, inflation, market interest rates, exchange rate fluctuations, and U.S. reciprocal tariff measures on significant assumptions related to cash flow projections, growth rates, discount rates, profitability, and other relevant estimates. Management will continue to review the estimates and underlying assumptions.

The accounting policies, estimates, and underlying assumptions adopted by the Group have been evaluated by management, and no significant accounting judgments, estimates, or uncertainties in assumptions were identified.

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VI. Cash and Cash Equivalents

	December 31, 2025	December 31, 2024
Cash on hand and petty cash	$ 971	$ 1,509
Checking accounts and demand deposits	13,614	29,954
Demand deposits	638,580	558,473
Cash equivalents (investments with original maturities of three months or less)
Time deposits	15,715	522,824
	$ 668,880	$ 1,112,760

The ranges of interest rates for bank deposits at the balance sheet dates were as follows:

Bank deposits	December 31, 2025	December 31, 2024
	0.001%~4.4%	0.010%~4.63%

VII. Financial Assets Measured at Amortized Cost

	December 31, 2025	December 31, 2024
Current
Restricted assets - bank deposits (1), (2), and (4)	$ 902	$ 32
Time deposits with original maturities of more than three months (3) and (4)	235,725	13,114
	$ 236,627	$ 13,146

(I) These assets were pledged as guarantees for import/export customs duties and highway toll fees. Information on the pledges is disclosed in Note 29.

(II) As of December 31, 2025 and 2024, the annual interest rates for restricted assets - bank deposits were 0.05% and 0.1% respectively.

(III) As of December 31, 2025 and 2024, the annual interest rates for time deposits with original maturity over 3 months were 3.70% to 4.20% and 4.50%, respectively.

(IV) For information on credit risk management and impairment assessment related to financial assets measured at amortized cost, please refer to Note 8.

VIII. Credit Risk Management for Investments in Debt Instruments

Financial Assets Measured at Amortized Cost

	December 31, 2025	December 31, 2024
Gross carrying amount	$ 236,627	$ 13,146
Loss allowance	-	-
	$ 236,627	$ 13,146

The Group's policy is to invest only in debt instruments issued by counterparties with good credit quality. The Group continuously monitors changes in the credit risk of the debt instruments in which it invests and also reviews other information, such as significant information regarding debtors, to assess whether the credit risk of the debt instrument investments has increased significantly since initial recognition. To mitigate credit risk, management of the Group collects relevant information to assess the default risk of investments in debt instruments. The Group assigns appropriate internal credit ratings with reference to publicly available financial information.

The Group considers the debtor's historical default experience, current financial condition, and forward-looking information on the industry in which the debtor operates in measuring the 12-month expected credit losses or lifetime expected credit losses of investments in debt instruments. As of December 31, 2025 and 2024, the Group assessed the expected credit loss rate of its debt instrument investments to be 0%.

IX. Accounts Receivables, and Other Receivables

	December 31, 2025	December 31, 2024
Accounts receivable
Measured at amortized cost
Gross carrying amount	$ 608,893	$ 583,358
Less: Loss allowance	( 7,224 )	( 13,610 )
	$ 601,669	$ 569,748
Other receivables
Tax refund receivables on exports	$ 3,610	$ 6,957
Interest receivable	5,160	1,532
Receivables from factoring (Note 27)	9,971	11,051
Employee advances	427	960
Others	11,190	11,642
	$ 30,358	$ 32,142

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(I) Accounts receivable

The Group’s average credit period for sales of goods ranges from 30 to 90 days. No interest is charged on accounts receivable. To mitigate credit risk, the management team of the Group has assigned a dedicated team to make decisions on credit limits, approve credit, and implement other monitoring procedures to ensure appropriate actions are taken to recover overdue accounts receivable. In addition, the Group reviews the recoverable amount of accounts receivable individually at each balance sheet date to ensure that appropriate impairment losses are recognized for uncollectible accounts receivable. Accordingly, management of the Group believes that the Group’s credit risk has been significantly reduced.

The Group recognizes loss allowance for accounts receivable based on lifetime expected credit losses. Lifetime expected credit losses are calculated using a provision matrix, which considers customers’ historical default records and current financial conditions, as well as factors such as GDP forecasts. As certain customers have shown indications of default, the Group applies a provision matrix different from that used for other customer groups for such customers and sets the expected credit loss rate for those customers at 100%. Except for the aforementioned customers, as the Group’s historical credit loss experience indicates that there are no significant differences in loss patterns among different customer groups, the provision matrix does not further distinguish customer groups and instead establishes expected credit loss rates solely based on the aging of accounts receivable.

If there is evidence to show that the counterparty is facing severe financial difficulties and the Group cannot reasonably expect to recover the amount, the Group will provide a 100% loss allowance, but will continue to pursue recovery activities. The amount recovered from the pursuit will be recognized in profit or loss.

The Group measures the loss allowance for accounts receivable using the following provision matrix:

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December 31, 2025

	Counterparties with no indication of default						Counterparties with indication of default	Total
	Current	Past due 1-60 days	Past due 61-120 days	Past due 121-180 days	Past due 181-270 days	Past due over 270 days
Expected credit loss rate	0%	0.8%	7%	24%	73%	100%	100%
Gross carrying amount	$ 427,793	$ 169,322	$ 4,629	$ 1,981	$ 253	$ 2,659	$ 2,256	$ 608,893
Loss allowance (lifetime expected credit loss)	(18)	(1,299)	(323)	(484)	(185)	(2,659)	(2,256)	(7,224)
Amortized costs	$ 427,775	$ 168,023	$ 4,306	$ 1,497	$ 68	$ -	$ -	$ 601,669

December 31, 2024

	Counterparties with no indication of default						Counterparties with indication of default	Total
	Current	Past due 1-60 days	Past due 61-120 days	Past due 121-180 days	Past due 181-270 days	Past due over 270 days
Expected credit loss rate	0.1%	4%	32%	61%	98%	99.8%	100%
Gross carrying amount	$ 494,493	$ 77,524	$ 1,644	$ 1,659	$ 1,829	$ 3,579	$ 2,630	$ 583,358
Loss allowance (lifetime expected credit loss)	(662)	(3,414)	(523)	(1,012)	(1,797)	(3,572)	(2,630)	(13,610)
Amortized costs	$ 493,831	$ 74,110	$ 1,121	$ 647	$ 32	$ 7	$ -	$ 569,748

The movements in the loss allowance for accounts receivable were as follows:

	2025	2024
Balance at beginning of year	$ 13,610	$ 36,632
Less: Reversal impairment loss for the year	( 4,472 )	( 2,360 )
Less: Amounts written off during the year	( 1,386 )	( 22,586 )
Effect of foreign currency translation	( 528 )	1,924
Balance at end of year	$ 7,224	$ 13,610

(II) Other receivables

Other receivables recognized by the Group mainly consist of tax refund receivables on exports, interest receivable, receivables from factoring, and employee advances. The Group’s policy is to transact only with counterparties that have good credit quality. Credit ratings are assigned to counterparties based on historical transaction records. The Group continuously monitors its credit exposure and the credit ratings of counterparties.

The Group considers the debtors' current financial conditions in assessing whether the credit risk of other receivables has increased significantly since initial recognition and in measuring expected credit losses. As of December 31, 2025 and 2024, the expected credit loss ratio on other receivables was 0%.

X. Inventories

	December 31, 2025	December 31, 2024
Finished goods	$ 99,581	$ 104,717
Work in process	109,724	121,801
Raw materials	383,933	350,057
Raw materials in transit	18,668	17,613
	$ 611,906	$ 594,188

The nature of cost of goods sold was as follows:

	2025	2024
Cost of inventories sold	$ 2,281,995	$ 2,377,883
Inventory write-downs and obsolescence losses	44,977	45,805
	$ 2,326,972	$ 2,423,688

XI. Subsidiaries

Subsidiaries included in the Consolidated Financial Statements

The entities included in the preparation of these consolidated financial statements are as follows:

Name of Investor	Name of Subsidiary	Nature of Business	Percentage of Ownership		Remarks
			December 31, 2025	December 31, 2024
SHANE GLOBAL HOLDING INC.	Shayne International Holdings Limited	Holding Company	100%	100%	The principal operating risks are foreign exchange risk
Shayne International Holdings Limited	Shayne Holding Inc.	Holding Company	100%	100%	The principal operating risks are foreign exchange risk
	Shayne USA, LLC (註 1)	Sales of sofas, sofa covers, and other leather products	100%	100%	The principal operating risks are foreign exchange risk and market risk
	Shayne (Macao Commercial Offshore) Limited	Sales of sofas, sofa covers, and other leather products	100%	100%	The principal operating risks are political risk, foreign exchange risk, and market risk
	JV International, LLC	Sales of sofas, sofa covers, and other leather products	100%	100%	The principal operating risks are foreign exchange risk and market risk
	Spectra Home LLC	Sales of sofas, sofa covers, and other leather products	100%	100%	The principal operating risks are foreign exchange risk and market risk
	Shayne Furniture (Thailand) Co., Ltd.	Manufacturing and sales of sofas, sofa covers, and other leather products	100%	100%	The principal operating risks are foreign exchange risk and market risk
	Shane (Cambodia) Furniture Co., Ltd. (註 2)	Manufacturing and sales of sofas, sofa covers, and other leather products	100%	100%	The principal operating risks are political risk, foreign exchange risk, and market risk
	Xin Huatong (Cambodia) Packaging Co., Ltd.	Manufacture and sale of product packaging materials.	51%	51%	The principal operating risks are political risk, foreign exchange risk, and market risk
Shayne Holding Inc.	Hangzhou Hua Tong Industries Inc.	Manufacturing and sales of sofas, sofa covers, and other leather products	97%	97%	The principal operating risks are political risk, foreign exchange risk, and market risk

Note 1: Shayne International Holdings Limited increased its capital by $1,902 thousand during the year.

Note 2: Shayne International Holdings Limited increased its capital by $15,808 thousand during the year.

Note 3: Ke Tu Furniture (Shanghai) Co., Ltd. was approved for dissolution and liquidation by a resolution of the Board of Directors on November 9, 2021, and the liquidation was completed on February 26, 2025.

XII. Property, Plant, and Equipment

	Buildings	Machinery and equipment	Transportation equipment	Leasehold improvements	Miscellaneous equipment	Construction in progress	Total
Cost
Balance as of January 1, 2025	$ 2,784,028	$ 454,816	$ 33,593	$ 324	$ 28,809	$ -	$ 3,301,570
Additions	1,680	20,518	122	-	690	27,957	50,967
Disposals	-	( 2,500)	( 500)	-	( 104)	-	( 3,104)
Reclassifications (Note)	-	452	-	-	-	-	452
Net exchange differences	( 91,181)	( 13,613)	( 994)	( 13)	( 852)	224	( 106,429)
Balance as of December 31, 2025	$ 2,694,527	$ 459,673	$ 32,221	$ 311	$ 28,543	$ 28,181	$ 3,243,456
Accumulated Depreciation and Impairment
Balance as of January 1, 2025	$ 771,529	$ 142,705	$ 22,578	$ 265	$ 17,179	$ -	$ 954,256
Depreciation expense	129,506	41,917	4,748	18	4,757	-	180,946
Disposals	-	( 1,067)	( 473)	-	( 104)	-	( 1,644)
Net exchange differences	( 15,325)	( 2,943)	( 565)	( 11)	( 411)	-	( 19,255)
Balance as of December 31, 2025	$ 885,710	$ 180,612	$ 26,288	$ 272	$ 21,421	$ -	$ 1,114,303
Net Amount as of December 31, 2025	$ 1,808,817	$ 279,061	$ 5,933	$ 39	$ 7,122	$ 28,181	$ 2,129,153
Cost
Balance as of January 1, 2024	$ 2,578,106	$ 436,033	$ 32,947	$ 304	$ 33,557	$ 52,402	$ 3,133,349
Additions	20,697	3,873	1,616	-	1,489	-	27,675
Disposals	( 28,248)	( 11,043)	( 2,912)	-	( 8,104)	-	( 50,307)
Reclassifications (Note)	54,670	-	-	-	-	( 54,670)	-
Net exchange differences	158,803	25,953	1,942	20	1,867	2,268	190,853
Balance as of December 31, 2024	$ 2,784,028	$ 454,816	$ 33,593	$ 324	$ 28,809	$ -	$ 3,301,570
Accumulated Depreciation and Impairment
Balance as of January 1, 2024	$ 609,937	$ 104,095	$ 18,575	$ 230	$ 18,801	$ -	$ 751,638
Depreciation expense	136,862	42,448	4,623	19	5,044	-	188,996
Disposals	( 9,442)	( 10,086)	( 1,733)	-	( 7,699)	-	( 28,960)
Net exchange differences	34,172	6,248	1,113	16	1,033	-	42,582
Balance as of December 31, 2024	$ 771,529	$ 142,705	$ 22,578	$ 265	$ 17,179	$ -	$ 954,256
Net Amount as of December 31, 2024	$ 2,012,499	$ 312,111	$ 11,015	$ 59	$ 11,630	$ -	$ 2,347,314

Reclassifications were made from other non-current assets—prepayments for equipment and construction in progress—to the respective categories of property, plant and equipment.

All property, plant, and equipment of the Group are for owner-occupied-use and are not leased out under operating leases.

No impairment loss was recognized or reversed for the years ended 2025 and 2024.

Depreciation is calculated on a straight-line basis over the following estimated useful lives:

Buildings
Main plant buildings	20 to 50 years
Others	5 years
Machinery and equipment	5 to 10 years
Transportation equipment	4 to 5 years
Leasehold improvements	2 to 8 years
Miscellaneous equipment	3 to 10 years

For the carrying amounts of owner-occupied property, plant and equipment pledged as collateral for borrowings, please refer to Note 29.

XIII. Lease Agreement

(I) Right-of-use Assets

	December 31, 2025	December 31, 2024
Carrying amount of right-of-use assets
Land use rights (Note)	$ 297,270	$ 322,341
Buildings	8,016	25,342
	$ 305,286	$ 347,683
	2025	2024
Addition of right-of-use assets	$ 740	$ 1,173
Depreciation expense of right-of-use assets
Land use rights	$ 12,850	$ 13,254
Buildings	16,851	17,357
	$ 29,701	$ 30,611

The Group did not recognize or reverse any impairment loss in 2025 and 2024.

Depreciation is recognized on a straight-line basis over the following useful lives:

Land use rights
30 to 50 years
Buildings
2 to 8 years

Note: For the carrying amounts of land use rights pledged as collateral for borrowings, please refer to Note 29.

(II) Lease Liabilities

	December 31, 2025	December 31, 2024
Carrying amounts of lease liabilities
Current	$ 8,307	$ 18,766
Non-current	$ 903	$ 9,230

The ranges of discount rates for lease liabilities were as follows:

Buildings	December 31, 2025	December 31, 2024
	3.625%~7.4%	3.625%~7.4%

(III) Significant Leasing Activities and Terms

The Group leases several buildings for use as factories, offices, employee dormitories, and exhibition halls. The lease term is 2 to 8 years. At the end of the lease term, the Group does not have any preferential purchase rights for the leased buildings.

The land use rights leases located in China are primarily used for production and operating activities, with lease terms of 50 years. The Group paid the full lease payments at the commencement date of the leases. At the end of the lease terms, the Group does not have bargain purchase options.

The land use rights leases located in Macau are primarily used for office purposes, with lease terms of 30 years. The Group paid the full lease payments at the commencement date of the leases. At the end of the lease terms, the Group does not have bargain purchase options.

The land use rights leases located in Cambodia are primarily used for production and operating activities, with lease terms of 50 years. The Group paid the full lease payments in the year of lease commencement. At the end of the lease terms, the Group does not have bargain purchase options.

Without the consent of the lessors, the Group may not sublease or transfer all or any portion of the leased land use rights and buildings.

38 -

(IV) Other Lease Information

	2025	2024
Expense relating to short-term leases	$ 4,390	$ 6,973
Expense relating to variable lease payments not included in the measurement of lease liabilities	$ 2,654	$ 1,574
Total cash (outflow) for leases	($ 26,148)	($ 27,558)

The Group has elected to apply the recognition exemption to leases of buildings and office equipment that qualify as short-term leases and therefore does not recognize related right-of-use assets and lease liabilities for such leases.

XIV. Goodwill

	2025	2024
Cost
Balance at beginning of year	$ 8,456	$ 7,920
Net exchange differences	( 349 )	536
Balance at end of year	$ 8,107	$ 8,456

XV. Other Intangible Assets

	Computer software
Cost
Balance as of January 1, 2025	$ 22,278
Net exchange differences	( 430 )
Balance as of December 31, 2025	$ 21,848
Accumulated amortization
Balance as of January 1, 2025	$ 16,716
Amortization expense	1,366
Net exchange differences	( 289 )
Balance as of December 31, 2025	$ 17,793
Net Amount as of December 31, 2025	$ 4,055
Cost
Balance as of January 1, 2024	$ 21,179
Net exchange differences	1,099
Balance as of December 31, 2024	$ 22,278
Accumulated amortization
Balance as of January 1, 2024	$ 14,350
Amortization expense	1,604
Net exchange differences	762
Balance as of December 31, 2024	$ 16,716
Net Amount as of December 31, 2024	$ 5,562

Amortization expense is recognized on a straight-line basis over the following useful life:

Computer software

10 years

XVI. Other Assets

	December 31, 2025	December 31, 2024
Current
Prepayments
Prepayments for purchases	$ 5,295	$ 8,347
Prepaid expenses	8,433	6,457
Value-added tax refundable	42,248	39,586
	$ 55,976	$ 54,390

(Continued on next page)

(Continued from previous page)

	December 31, 2025	December 31, 2024
Non-current
Refundable deposits (Note)	$ 3,202	$ 3,016
Prepayments for equipment	1,963	465
	$ 5,165	$ 3,481

Note: The Group measures the 12-month expected credit losses or lifetime expected credit losses on refundable deposits by considering the debtor's historical default experience, current financial condition, and forward-looking information on the industry in which the debtor operates. As of December 31, 2025 and 2024, the Group assessed expected credit loss rate for the refundable deposits held to be 0%.

XVII. Loans

(I) Short-term Borrowings

	December 31, 2025	December 31, 2024
Secured Borrowings (Note 28)
Bank Borrowings - DBS Bank	$ 245,154	$ -

The interest rate on bank revolving borrowings was $5\%$ as of December 31, 2025.

(II) Long-term Borrowings

	December 31, 2025	December 31, 2024
Secured loans
Bank loans - Industrial and Commercial Bank of	$ 13,289	$ 15,343
China Less: Loans due within 1 year	(1,466)	(1,474)
Long-term Borrowings	$ 11,823	$ 13,869

The long-term secured borrowings are collateralized by the Group's buildings and right-of-use assets (see Note 29). The total credit facility amounted to NT$21,707 thousand (HKD 5,460 thousand), and the borrowings mature on February 28, 2034. As of December 31, 2025 and 2024, the outstanding balances of the Group's long-term bank borrowings were NT$13,289 thousand and NT$15,343 thousand, respectively, with interest rates of $2.75\%$ and $3\%$ , respectively. Beginning on March 28, 2019, the principal and interest are repayable in 180 monthly installments.

42 -

XVIII. Other Liabilities

	December 31, 2025	December 31, 2024
Current
Other payables
Insurance premium payable	$ 349,629	$ 334,095
Salaries and bonuses payable	90,457	114,540
Equipment payable (Note 25)	12,553	13,028
Service fee payable	2,955	2,776
Interest payable	681	-
Freight payable	26,463	15,398
Others	15,314	11,575
	$ 498,052	$ 491,412
Other liabilities
Tax payable	$ 2,632	$ 2,335
Others	315	427
	$ 2,947	$ 2,762
Non-current
Other liabilities
Guarantee deposits	$ 1,333	$ 903

XIX. Post-employment Benefit Plans

Defined Contribution Plans

Under the pension system of the Taiwan branch of Shayne International Holdings Limited governed by the Labor Pension Act, the pension plan is a government-managed defined contribution plan. The entity contributes 6% of each employee’s monthly salary to the individual pension accounts maintained by the Bureau of Labor Insurance.

Employees of the Group’s subsidiaries in various regions are members of retirement benefit plans operated by the respective local governments. The subsidiaries are required to contribute a specified percentage of payroll costs to the retirement benefit plans to fund the plans. The Group’s obligation with respect to these government-operated retirement benefit plans is limited to the contribution of the specified amounts.

XX. Equity

(I) Share capital

Ordinary shares

	December 31, 2025	December 31, 2024
Authorized shares (thousand shares)	150,000	150,000
Authorized capital	$1,500,000	$1,500,000
Issued and fully paid shares (thousand shares)	107,444	107,444
Issued share capital	$1,074,440	$1,074,440

Each issued ordinary share has a par value of NT$10 and carries one voting right and the right to receive dividends.

On August 28, 2024, the Company’s Board of Directors resolved to cancel 3,000 thousand treasury shares, with August 30, 2024 designated as the capital reduction record date. Accordingly, share capital, capital surplus, and unappropriated earnings were reduced by NT$30,000 thousand, NT$35,474 thousand, and NT$357,931 thousand, respectively. After the cancellation, the Company’s share capital amounted to NT$1,074,440 thousand.

(II) Capital surplus

	December 31, 2025	December 31, 2024
Available for offsetting deficits, distributing cash, or capitalization
Share Premiums	$1,268,739	$1,268,739

Capital surplus may be used to offset deficits. When the Company has no deficit, it may also be distributed as cash or capitalized, provided that capitalization is limited to a certain percentage of paid-in capital each year.

43 -

(III) Retained Earnings and Dividend Policy

Pursuant to the Company’s Articles of Incorporation, during the listing period, unless otherwise provided by Cayman Islands laws and regulations, listing rules, the Articles of Incorporation, or the rights attached to the shares, if the Company has earnings at the end of a fiscal year, after payment of all relevant taxes, offsetting accumulated losses (including losses from prior years and adjustments to unappropriated earnings, if any), appropriating legal reserve in accordance with listing regulations (unless the aggregate amount of legal reserve has reached the Company’s total paid-in capital), and appropriating special reserve (if any), the remaining amount (including any reversal of special reserve) may, by an ordinary resolution at the annual general meeting, be distributed as dividends and/or bonuses to shareholders in proportion to their shareholdings in an amount not less than 10% of the distributable earnings, plus all or part of accumulated unappropriated earnings from prior years (including adjustments to unappropriated earnings) resolved by ordinary resolution at the annual general meeting. Of such dividends and/or bonuses, the cash portion shall not be less than 10% of the total dividends and/or bonuses distributed. For the Company’s policies regarding the distribution of employee compensation and directors’ remuneration as prescribed in the Articles of Incorporation, please refer to Note 22(7), “Employee Compensation and Directors’ Remuneration.”

The Company appropriates and reverses special reserve in accordance with FSC Letter Jin-Guan-Zheng-Fa No. 1090150022 and the “Questions and Answers on Appropriation of Special Reserve after Adoption of International Financial Reporting Standards (IFRSs).”

At the annual general meetings held on June 13, 2025 and June 14, 2024, the Company approved the appropriations of earnings for 2024 and 2023, respectively, as follows:

	2024	2023
Legal reserve	$ 47,783	$ 30,418
(Reversal of) appropriation to special reserve	($ 204,222 )	$ 26,222
Cash dividends	$ 458,161	$ 247,121
Cash dividends per share (NT$)	$ 4.36	$ 2.3

The appropriation of 2025 earnings proposed by the Company's Board of Directors on March 12, 2026 was as follows:

	2025
Legal reserve	$ 24,427
Special reserve	$ 139,758
Cash dividends	$ 205,962
Cash dividends per share (NT$)	$ 1.96

The appropriation of 2025 earnings remains subject to approval at the annual general meeting expected to be held on June 12, 2026.

(IV) Other Equity Items

Exchange differences on translation of foreign operations' financial statements

Exchange differences on translation into the presentation currency

	2025	2024
Balance at beginning of year	$ 159,180	($ 68,437)
Exchange differences on translation into the presentation currency	( 167,394 )	227,617
Balance at end of year	($ 8,214)	$ 159,180

Exchange differences on translation of foreign operations

	2025	2024
Balance at beginning of year	($ 239,308 )	($ 215,913 )
Exchange differences on translation of foreign operations	27,636	( 23,395 )
Balance at end of year	($ 211,672 )	($ 239,308 )

(V) Non-controlling interests

	2025	2024
Balance at beginning of year	$ 83,419	$ 75,493
Net income (loss) for the year	( 2,824 )	3,389
Other comprehensive income for the year
Exchange differences on translation into the presentation currency	( 3,463 )	5,172
Exchange differences on translation of foreign operations' financial statements	870	( 635 )
Balance at end of year	$ 78,002	$ 83,419

(VI) Treasury shares

Reason for reacquisition	Transfer of shares to employees (thousand shares)	Repurchase for cancellation (thousands shares)	Total (thousands shares)
Number of shares as of January 1, 2025	-	-	-
Increase during the period	2,361	-	2,361
Number of shares as of December 31, 2025	2,361	-	2,361
Number of shares as of January 1, 2024	3,000	-	3,000
Decrease during the period	-	( 3,000 )	( 3,000 )
Number of shares as of December 31, 2024	3,000	( 3,000 )	-

On January 15, 2025, the Company's Board of Directors resolved to repurchase 3,000 thousand shares for transfer to employees. The actual repurchase period was from January 17, 2025 to March 16, 2025, and the repurchase prices ranged from NT$98.2 to NT$120 per share. As of the expiration date of the repurchase period (March 16, 2025), the Company had repurchased 2,361 thousand shares for a total amount of NT$262,436 thousand.

The Company canceled treasury shares that had not been transferred to employees within the statutory period in accordance with applicable regulations. On August 28, 2024, the Board of Directors resolved to cancel 3,000 thousand treasury shares, with August 30, 2024 designated as the capital reduction record date.

In accordance with the Securities and Exchange Act, treasury shares held by the Company may not be pledged and are not entitled to rights such as dividend distributions or voting rights.

46 -

XXI. Revenue

	2025	2024
Revenue from contracts with customers
Revenue from the Sale of Goods	$3,424,960	$3,695,415

(I) Contract balance

	December 31, 2025	December 31, 2024	January 01, 2024
Notes receivable	$ -	$ -	$ 78
Accounts receivable
(Note 9)	601,669	569,748	398,160
	$ 601,669	$ 569,748	$ 398,238
Contractual liabilities
Sale of goods	$ 23,793	$ 33,665	$ 26,106

Changes in contract liabilities mainly result from the differences between the timing of satisfaction of performance obligations and the timing of customer payments.

The amounts recognized as revenue during the year that were included in the contract liabilities at the beginning of the year were as follows:

	2025	2024
Revenue recognized from contract liabilities at the beginning of the year
Sale of goods	$ 26,210	$ 12,928

(II) Disaggregation of revenue from contracts with customers

For information on revenue disaggregation, please refer to Note 34.

XXII. Profit from Continuing Operations

(I) Interest Income

	2025	2024
Bank deposits	$ 15,321	$ 9,800

(II) Other Income

	2025	2024
Government grant income	$ 7,307	$ 4,870
Tariff refund income	185	15,300
Others	39,009	25,060
	$ 46,501	$ 45,230

47 -

(III) Other Gains and (Losses)

	2025	2024
Disposals of property, plant, and equipment
Loss (gain)	($ 1,460)	$ 31,044
Net foreign exchange loss (gain)	( 10,578)	27,911
Compensation loss	( 13,063)	-
Others	( 3,140)	( 9,050)
	($ 28,241)	$ 49,905
(IV) Financial costs
	2025	2024
Interest on bank borrowings	$ 5,208	$ 558
Interest on lease liabilities (Note 28)	914	1,880
	$ 6,122	$ 2,438
(V) Depreciation and Amortization
	2025	2024
Depreciation expense summarized by function
Cost of goods sold	$ 137,017	$ 145,331
Operating expenses	73,630	74,276
	$ 210,647	$ 219,607
Amortization expense summarized by function
Administrative expenses	$ 1,366	$ 1,604
(VI) Employee Benefits Expenses
	2025	2024
Short-term Employee Benefits	$ 791,865	$ 820,083
Post-employment Benefits
Defined Contribution Plans	35,514	38,247
Total employee benefit expenses	$ 827,379	$ 858,330
Summarized by function
Cost of goods sold	$ 463,246	$ 463,644
Operating expenses	364,133	394,686
	$ 827,379	$ 858,330

(VII) Employee Compensation and Directors' Remuneration

Pursuant to the Company’s Articles of Incorporation, employee compensation of 1% to 2% and directors’ remuneration of no more than 1% shall be appropriated based on profit before income tax and before appropriation of employee compensation and directors’ remuneration for the year. The employee compensation and directors’ remuneration estimated for 2025 and 2024 were approved by resolutions of the Board of Directors on March 12, 2026 and March 13, 2025, respectively, as follows:

Estimated Appropriation Ratios

	2025	2024
Employee compensation	1.89%	1.50%
Directors’ remuneration	0.98%	0.96%

Amounts

	2025	2024
	Cash	Cash
Employee compensation	$ 4,715	$ 7,213
Directors’ remuneration	$ 2,452	$ 4,590

If there is any subsequent change in the amounts after the annual consolidated financial statements are authorized for issue, such changes shall be accounted for as changes in accounting estimates and recognized in the following year.

There were no differences between the actual amounts of employee compensation and directors’ remuneration distributed for 2024 and 2023 and the amounts recognized in the consolidated financial statements for 2024 and 2023.

Information on employee compensation and directors’ remuneration approved by the Company’s Board of Directors is available on the Market Observation Post System website of the Taiwan Stock Exchange.

(VIII) Foreign Exchange Gains (Losses)

	2025	2024
Total foreign exchange gains	$ 14,229	$ 53,946
Total foreign exchange losses	( 24,807 )	( 26,035 )
Net loss (gain)	( $ 10,578 )	$ 27,911

XXIII. Income Tax on Continuing Operations

(I) Income Tax Recognized in Profit or Loss

The major components of income tax expense are as follows:

	2025	2024
Current Income Tax
Current year	$ 33,312	$ 63,892
Adjustments for prior years	53,427	4,463
	86,739	68,355
Deferred Income Tax
Current year	( 488 )	723
Income tax expense recognized in profit or loss	$ 86,251	$ 69,078

The reconciliation between accounting profit and income tax expense is as follows:

	2025	2024
Profit before income tax from continuing operations	$ 325,753	$ 540,481
Income tax expense calculated at the statutory tax rate (25%) on profit before income tax	$ 81,438	$ 135,120
Expenses not deductible for tax purposes	-	1,803
Effect of different tax rates applicable to consolidated entities	( 48,614 )	( 72,308 )
Adjustments to current income tax expense of prior years recognized in the current year	53,427	4,463
Income tax expense recognized in profit or loss	$ 86,251	$ 69,078

The income tax rate applicable to entities of the Group subject to the Income Tax Act of the Republic of China (Taiwan) is 20%; the applicable tax rate for subsidiaries in China is 25%; the applicable tax rate for subsidiaries in Macau is 12%; and income taxes arising in other jurisdictions are calculated based on the tax rates applicable in the respective jurisdictions.

(II) Current Income Tax Assets and Liabilities

	December 31, 2025	December 31, 2024
Current income tax assets
Income tax refunds receivables	$ 2,641	$ 2,728
Current income tax liabilities
Income tax payable	$ 432,821	$ 484,122

(III) Deferred Income Tax Assets and Liabilities

The movements in deferred income tax assets and liabilities were as follows:

2025

	Balance at beginning of year	Recognized in profit and loss	Exchange differences	Balance at end of year
Deferred Income Tax Assets
Temporary Difference Loss allowance	$ 25	($ 24)	($ 1)	$ -
Inventory write-down losses	21,881	-	(422)	21,459
Tax loss carryforwards	-	399	3	402
	$ 21,906	$ 375	($ 420)	$ 21,861
Deferred Income Tax Liabilities
Temporary Difference Others	$ 128	($ 113)	($ 6)	$ 9

2024

	Balance at beginning of year	Recognized in profit and loss	Exchange differences	Balance at end of year
Deferred Income Tax Assets
Temporary Difference Loss allowance	$ 670	($ 677)	$ 32	$ 25
Inventory write-down losses	20,802	-	1,079	21,881
	$ 21,472	($ 677)	$ 1,111	$ 21,906
Deferred Income Tax Liabilities
Temporary Difference Others	$ 75	$ 46	$ 7	$ 128

(IV) Aggregate Amount of Temporary Differences Related to Investments for Which Deferred Income Tax Assets Have Not Been Recognized

As of December 31, 2025 and 2024, taxable temporary differences related to investment in subsidiaries for which deferred income tax assets had not been recognized amounted to NT$33,508 thousand and NT$54,823 thousand, respectively.

(V) Status of Income Tax Assessments

The profit-seeking enterprise income tax returns of the Taiwan branch of Shayne International Holdings Limited, namely Shane International Co., Ltd., Taiwan Branch (Cayman Islands), have been assessed by the tax authorities through the 2023 tax year. As of December 31, 2025, the Group had no unresolved tax litigation cases.

XXIV. Earnings Per Share

	2025	Unit: NT$ per share 2024
Basic earnings per share
From continuing operations	$ 2.30	$ 4.36
Diluted earnings per share
From continuing operations	$ 2.30	$ 4.35

The earnings and weighted average number of ordinary shares outstanding used in the calculation of earnings per share were as follows:

Net profit for the year

	2025	2024
Net profit attributable to owners of the Company	$ 242,326	$ 468,014
Effect of potentially dilutive ordinary shares:
Employee compensation	-	-
Net profit used in the calculation of diluted earnings per share	$ 242,326	$ 468,014

Number of shares (Unit: thousand shares)

	2025	2024
Weighted average number of ordinary shares outstanding used in the calculation of basic earnings per share	105,323	107,444
Effect of potentially dilutive ordinary shares:
Employee compensation	110	96
Weighted average number of ordinary shares outstanding used in the calculation of diluted earnings per share	105,433	107,540

If the Group has the option to settle employee compensation in shares or cash, the calculation of diluted earnings per share assumes that employee compensation will be settled in shares, and such potential ordinary shares are included in the weighted average number of shares outstanding when they have a dilutive effect. When calculating diluted earnings per share before the number of shares to be issued for employee compensation in the following year is resolved, the dilutive effect of such potential ordinary shares is also taken into consideration.

XXV. Cash Flows Information

(I) Non-cash Transactions

The Group entered into the following non-cash investing activities during 2025 and 2024:

As of December 31, 2025 and 2024, payables for the acquisition of property, plant and equipment amounting to NT$12,553 thousand and NT$13,028 thousand, respectively, remained unpaid and were recognized under other payables.

(II) Changes in Liabilities Arising from Financing Activities 2025

	January 1, 2025	Cash Flow		Non-cash Changes				December 31, 2025
		From operating activities	From financing activities	Financial costs	New leases	Interest payable	Effect of exchange rate changes
Short-term Borrowings	$ -	($ 4,116)	$ 243,532	$ 4,797	$ -	($ 681)	$ 1,622	$ 245,154
Long-term Borrowing	15,343	( 411)	( 1,408)	411	-	-	( 646)	13,289
Guarantee deposits received	903		437	-	-	-	( 7)	1,333
Lease Liabilities	27,996	( 914)	( 18,190)	914	740	-	( 1,336)	9,210
	$ 44,242	($ 5,441)	$ 224,371	$ 6,122	$ 740	($ 681)	($ 367)	$ 268,986

2024

	January 01, 2024	Cash Flow		Non-cash Changes			December 31, 2024
		From operating activities	From financing activities	Financial costs	New leases	Effect of exchange rate changes
Long-term Borrowings	$ 15,674	($ 558)	($ 1,365)	$ 558	$ -	$ 1,034	$ 15,343
Guarantee deposits received	959	-	( 105 )	-	-	49	903
Lease
Liabilities	41,471	( 1,880 )	( 17,131 )	1,880	1,173	2,483	27,996
	$ 58,104	($ 2,438 )	($ 18,601 )	$ 2,438	$ 1,173	$ 3,566	$ 44,242

XXVI. Capital Risks Management

The Group manages its capital to ensure that entities within the Group will be able to continue as a going concern while maximizing returns to shareholders through the optimization of the balance between debt and equity.

The capital structure of the Group consists of equity attributable to the owners of the company (i.e., share capital, capital surplus, retained earnings, other equity, and treasury stock).

The Group is not subject to any externally imposed capital requirements.

The Group’s key management personnel periodically review the capital structure of the Group, including consideration of the costs and associated risks of each class of capital. Based on recommendations from key management personnel, the Group seeks to balance its overall capital structure through the payment of dividends, issuance of new shares, and incurrence of debt.

XXVII. Financial Instruments

(I) Fair Value Information – Financial Instruments Not Measured at Fair Value

Management of the Group believes that the carrying amounts of financial assets and financial liabilities not measured at fair value approximate their fair values.

(II) Categories of Financial Instruments

	December 31, 2025	December 31, 2024
Financial Assets
Measured at amortized cost (Note 1)	$ 1,537,126	$ 1,723,855
Financial Liabilities
Measured at amortized cost (Note 2)	615,570	335,502

54 -

Note 1: The balances include financial assets measured at amortized cost, such as cash and cash equivalents, financial assets at amortized cost – current, accounts receivable, other receivables (excluding tax refund receivables), and refundable deposits.

Note 2: The balance includes financial liabilities measured at amortized cost, such as loans, notes payable, accounts payable (including related parties), other payables (net of salaries, bonuses and insurance premiums payable) and other financial liabilities measured at amortized cost, and refundable deposits.

(III) Financial Risk Management Objectives and Policies

The Group’s major financial instruments include cash and cash equivalents, financial assets at amortized cost – current, receivables, payables, borrowings, and lease liabilities. The Group’s financial management department provides services to each business unit, coordinates access to domestic and international financial markets, and monitors and manages the financial risks relating to the operations of the Group through internal risk reports that analyze exposures based on the degree and extent of risk. These risks include market risk (including foreign exchange risk and interest rate risk), credit risk, and liquidity risk.

Market Risk

The Group’s operating activities expose it primarily to the financial risks of changes in foreign currency exchange rates (see Note (1) below) and changes in interest rates (see Note (2) below).

(1) Foreign Exchange Risk

The Group engages in sales and purchases transactions denominated in foreign currency, which exposes the Group to exchange rate fluctuations. The Group periodically evaluates the sales and cost amounts denominated in non-functional currency to determine the net risk position and adjusts the cash holding position of the non-functional currency accordingly.

For the carrying amounts of monetary assets and monetary liabilities denominated in non-functional currencies at the balance sheet dates (including monetary items denominated in non-functional currencies that have been eliminated in the consolidated financial statements), please refer to Note 32.

55 -

56 -

Sensitivity Analysis

The Group is primarily exposed to fluctuations in the exchange rate of the U.S. dollar.

The following table details the Group's sensitivity to a 1% increase and decrease in the exchange rates of the relevant foreign currencies against the functional currencies of the Group entities. The 1% sensitivity rate is the rate used internally by the Group when reporting foreign exchange risk to key management personnel and represents management's assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding monetary items denominated in foreign currencies and is used to adjust the translation at the end of the period to a 1% change in the exchange rate. The scope of the sensitivity analysis includes the Group's foreign currency monetary items. When foreign currency monetary items represent net assets, a positive number in the table below indicates an increase in profit before income tax or equity resulting from a 1% appreciation of the relevant foreign currency against the functional currencies of the Group entities. Conversely, when the relevant foreign currency depreciates by 1% against the functional currencies of the Group entities, the effect on profit before income tax or equity would be a negative amount of the same magnitude.

	Effect of U.S. Dollar
	2025	2024
Profit or loss	$ 7,450	$ 9,311

The exposure mainly arises from U.S. dollar-denominated cash and cash equivalents, receivables, and payables outstanding at the balance sheet dates for which no cash flow hedges have been entered into.

The Group's sensitivity to fluctuations in the U.S. dollar exchange rate decreased during the current year, primarily due to a decrease in net assets denominated in U.S. dollars.

(2) Interest Rate Risk

The Group is exposed to interest rate risk because its bank deposits, financial assets at amortized cost – current, borrowings, and lease liabilities include instruments bearing both fixed and floating interest rates.

The carrying amounts of the Group’s financial assets and financial liabilities subject to interest rate risk as of the balance sheet date are as follows:

	December 31, 2025	December 31, 2024
Subject to fair value interest rate risk
- Financial assets	$ 251,440	$ 535,938
- Financial liabilities	254,364	27,996
Subject to cash flow interest rate risk
- Financial assets	639,482	558,505
- Financial liabilities	13,289	15,343

Sensitivity Analysis

The following sensitivity analysis is determined based on the interest rate exposure of non-derivative instruments at the balance sheet date. For floating-rate assets and liabilities, the analysis is prepared assuming that the amounts of liabilities outstanding at the balance sheet date were outstanding for the entire reporting period. The change rate used internally by the Group when reporting interest rate risk to key management personnel is a 1% increase or decrease in interest rates, which also represents management’s assessment of the reasonably possible range of changes in interest rates.

If interest rates had increased/decreased by 1%, with all other variables held constant, the Group’s profit before income tax for 2025 and 2024 would have increased by NT$6,262 thousand and NT$5,432 thousand, respectively, primarily due to the Group’s exposure to interest rate risk arising from floating-rate bank deposits and borrowings.

The Group’s sensitivity to interest rates increased during the current year, primarily due to an increase in net assets bearing floating interest rates.

Credit Risks
57 -

Credit risk refers to the risk that a counterparty will default on its contractual obligations, resulting in financial loss to the Group. As of the balance sheet dates, the Group’s maximum exposure to credit risk that could cause financial loss due to counterparties’ failure to perform their obligations primarily arises from the carrying amounts of the financial assets recognized in the consolidated balance sheets.

The Group’s policy is to transact only with reputable counterparties and, where necessary, obtain sufficient collateral to mitigate the risk of financial losses arising from defaults. The Group evaluates major customers by establishing comprehensive customer profiles, utilizing other publicly available financial and non-financial information, and referencing historical transaction records with the counterparties. The Group continuously monitors its credit exposure and the credit ratings of counterparties, and controls credit exposure through counterparty credit limits that are reviewed and approved annually by authorized supervisors.

The Group continuously evaluates the financial conditions of customers with accounts receivable and reviews the recoverable amounts of accounts receivable to ensure that appropriate impairment losses are recognized for uncollectible receivables. Where necessary, the Group may also require advance payments as a condition of transactions to reduce credit risk. Accordingly, the Group expects limited credit risk associated with accounts receivable.

The Group’s credit risk is primarily concentrated among its top five major customers. As of December 31, 2025 and 2024, accounts receivable from these customers accounted for 83% and 80% of total accounts receivable, respectively.

Liquidity Risk

The Group manages and maintains sufficient levels of cash and cash equivalents to support the Group’s operations and mitigate the effects of fluctuations in cash flows. Management of the Group monitors the utilization of bank financing facilities and ensures compliance with the terms of borrowing agreements.

58 -

Bank borrowings are an important source of liquidity for the Group. As of December 31, 2025 and 2024, the Group's unused financing facilities are disclosed in Note (2) Financing Facilities below.

(1) Liquidity and Interest Rate Risk Table for Non-derivative Financial Liabilities

The following table details the remaining contractual maturity analysis of the Group's non-derivative financial liabilities, which has been prepared based on the earliest date on which the Group may be required to make repayment and on the undiscounted cash flows of the financial liabilities, including both principal and estimated interest. Accordingly, bank borrowings for which the Group may be required to repay immediately are included in the earliest time band in the table below, regardless of the probability of banks exercising their rights to demand immediate repayment. The maturity analysis for other non-derivative financial liabilities is prepared based on the agreed repayment dates.

December 31, 2025

	WITHIN 3 MONTHS	3 MONTHS TO 1 YEAR	1 TO 5 YEARS	OVER 5 YEARS
Short-term borrowings	$ 246,934	$ -	$ -	$ -
Non-interest-bearing liabilities	325,985	29,809	1,333	-
Long-term borrowings	453	1,358	7,279	5,762
Lease Liabilities	3,852	4,632	905	-
	$ 577,224	$ 35,799	$ 9,517	$ 5,762

December 31, 2024

	WITHIN 3 MONTHS	3 MONTHS TO 1 YEAR	1 TO 5 YEARS	OVER 5 YEARS
Non-interest-bearing liabilities	$ 303,398	$ 15,858	$ 903	$ -
Long-term borrowings	478	1,435	7,667	7,988
Lease Liabilities	4,899	14,807	9,412	-
	$ 308,775	$ 32,100	$ 17,982	$ 7,988

(2) Credit limit

	December 31, 2025	December 31, 2024
Secured bank borrowing facilities (extendable upon mutual agreement)
- Amount utilized	$ 258,443	$ 15,343
- Amount unutilized	1,188,494	1,148,721
	$ 1,446,937	$ 1,164,064

(IV) Information on Transfers of Financial Assets

As of December 31, 2025 and 2024, the Group had factored accounts receivable with Crestmark Bank at annual interest rates ranging from 0.9% to 1.0%.

Information relating to the factored accounts receivable that remained outstanding at year-end is as follows:

December 31, 2025

Counterparty	Amount factored	Reclassified to other receivables	Amount advanced	Annual interest rate on advances (%)
Crestmark Bank	$ 9,971	$ 9,971	$ -	-

December 31, 2024

Counterparty	Amount factored	Reclassified to other receivables	Amount advanced	Annual interest rate on advances (%)
Crestmark Bank	$ 11,051	$ 11,051	$ -	-

The above transferred accounts receivable have been presented under other receivables. The principal obligations borne by the Group under the accounts receivable factoring agreements entered into with financial institutions are described as follows:

Losses arising from commercial disputes (such as sales returns or allowances) are borne by the Group, while losses arising from credit risks are borne by the bank.
The Group guarantees that the assigned factored receivables genuinely exist and that no third party may assert any rights over them.
The Group also guarantees that the assigned factored receivables are free from pledges or restrictions on transfer and constitute accounts receivable claims with fixed amounts.
60 -

XXVIII. Related Party Transactions

Transactions, account balances, revenues, and expenses between the Company and its subsidiaries (which are related parties of the Company) have been eliminated in full upon consolidation and are therefore not disclosed in this note. Transactions between the Group and other related parties are disclosed as follows.

(I) Names of Related Parties and Their Relationships

Name of Related Party	Relationship with the Group
Shayne Industrial Inc.	Substantive related party
Zhejiang Tongtianxing Joint-Stock Co., Ltd.	Substantive related party
Jiali Fu Furniture Materials Co., Ltd.	Substantive related party
Feng, Li-Chun	Substantive related party
Hsieh, Chih-Tung	Key management personnel
Hsieh, Ming-Yun	Key management personnel

(II) Revenue

Category / Name of Related Party	2025	2024
Substantive related party
Feng, Li-Chun	$ -	$ 335

The terms and collection periods for sales transactions between the Group and related parties were comparable to those for general customers.

(III) Purchases

Category / Name of Related Party	2025	2024
Substantive related party
Zhejiang Tongtianxing Joint-Stock Co., Ltd.	$ 91,683	$ 119,599
Jiali Fu Furniture Materials Co., Ltd.	5,214	-
	$ 96,897	$ 119,599

The transaction terms and payment periods for purchases made by the Group from related parties were comparable to those of general suppliers.

(IV) Amounts Payable to Related Parties (Excluding Borrowings from Related Parties)

Account Item	Category / Name of Related Party	December 31, 2025	December 31, 2024
Accounts payable	Substantive related party
	Zhejiang Tongtianxing Joint-Stock Co., Ltd.	$ 16,037	$ 8,679

Outstanding balances payable to related parties were unsecured.

(V) Lease Arrangements

Category of related parties	December 31, 2025	December 31, 2024
Lease Liabilities
Substantive related party
Shayne Industrial Inc.	$ 1,379	$ 2,576
Category of related parties	2025	2024
Interest expense
Substantive related party
Shayne Industrial Inc.	$ 138	$ 221

The Group leases offices from substantive related parties, with lease terms of 8 years. The lease agreements were entered into based on prevailing market rates, and rent is paid on a monthly basis.

(VI) Endorsements and guarantees

Acquisition of endorsement and guarantee

Category / Name of Related Party	December 31, 2025	December 31, 2024
Key management personnel
Hsieh, Chih-Tung, Hsieh, Ming-Yun
Guaranteed amount	$ 314,300	$ 327,850
Amount utilized (recognized as secured bank borrowings)	$ 245,154	$ -

(VII) Compensation of Key Management Personnel

	2025	2024
Short-term Employee Benefits	$ 41,743	$ 38,523
Post-employment Benefits	$ 851	$ 778

The compensation of directors and other key management personnel is determined by the Remuneration Committee based on individual performance and market trends.

XXIX. Assets Pledged as Collateral

The following assets have been pledged to financial institutions as collateral for financing borrowings (including unused facilities), issuance of letters of credit, guarantees for import/export customs duties, highway toll fees, and other obligations:

	December 31, 2025	December 31, 2024
Buildings - Net	$ 71,132	$ 82,583
Pledged demand deposits
(recognized under financial assets at amortized cost – current)	902	32
Right-of-use Assets	14,602	15,852
	$ 86,636	$ 98,467

XXX. Significant Contingent Liabilities and Unrecognized Contractual Commitments

The Group’s significant commitments as of the balance sheet dates were as follows:

(I) The Group’s unrecognized contractual commitments were as follows:

	December 31, 2025	December 31, 2024
Acquisition of property, plant, and equipment	$ 13,267	$ -

(II) On September 15, 2023, Shayne Furniture (Thailand) Co., Ltd. (“Shayne Thailand”), a subsidiary of the Company, filed a civil lawsuit against Tetrad International Company Limited (“Tetrad”), the owner of the leased factory premises, claiming that the lease renewal agreement was invalid and requesting the return of the factory deposit together with interest totaling THB 8,308 thousand, as well as reimbursement of court fees amounting to THB 167 thousand.

During the mediation hearing held on November 6, 2023, Tetrad filed a counterclaim alleging that Shayne Thailand had failed to change the tax-free zone operating permit address usage rights for the factory back to Tetrad. Tetrad further claimed that, after Shayne Thailand vacated the factory premises, it failed to remove all remaining items from the site, preventing Tetrad from leasing the factory to another party. Accordingly, Tetrad sought damages of THB 50,000 thousand from Shayne Thailand, together with monthly site usage fees of THB 4,000 thousand until all remaining items were removed from the factory premises by Shayne Thailand.

The court conducted formal bilateral hearings and examinations on February 15 and 16, 2024, and stated in court that it rejected the counterclaims raised by Tetrad. On April 30, 2024, the court ruled that Tetrad should return the deposit together with interest to Shayne Thailand. Subsequently, on September 30, 2024, Tetrad filed an appeal with the appellate court, requesting that the appellate court overturn the judgment rendered by the court of first instance on April 30, 2024. To the extent possible, the Group's legal counsel has assessed the likelihood and estimated amounts of potential losses or gains arising from this case as follows:

If the appellate court determines that Shayne Thailand should bear a greater portion of the factory repair costs, the amount of the deposit refundable by Tetrad may be lower than that awarded in the first-instance judgment.
If the appellate court upholds the first-instance judgment, Tetrad will be required to pay not only the amount awarded by the first-instance court but also additional interest accrued up to the date of full repayment.

The Company's legal counsel remains optimistic regarding the progress of this case.

64 -

XXXI. Other Matters

The Group’s production bases are located in Mainland China and Cambodia. As the Group’s primary sales markets are in North America, with a significant proportion of revenue derived from sales to the United States, orders from the U.S. market under the current U.S. reciprocal tariff measures will primarily be fulfilled by the Cambodia production base. In addition, the Group continues to expand into non-U.S. markets in order to diversify risks. The Group will continue to closely monitor industry developments and changes in international trade policies, maintain good communication with customers, and timely execute risk response and adjustment measures to ensure operational stability and shareholder equity.

XXXII. Information on Foreign Currency Assets and Liabilities with Significant Impact

The following information is presented on an aggregate basis in foreign currencies other than the functional currencies of the Group’s individual entities. The exchange rates disclosed represent the rates at which such foreign currencies were translated into the functional currencies. Foreign currency assets and liabilities with significant impact were as follows:

December 31, 2025

	Foreign currency (in thousands)	Exchange rate	Carrying amount
Foreign Currency Assets
Monetary items
U.S. dollars	$ 24,206	7.0288 (USD: RMB)	$ 760,788
U.S. dollars	50	31.3480 (USD: THB)	1,580
			$ 762,368
Foreign Currency Liabilities
Monetary items
U.S. dollars	553	7.0288 (USD: RMB)	$ 17,394

65 -

December 31, 2024

	Foreign currency (in thousands)	Exchange rate	Carrying amount
Foreign Currency Assets
Monetary items
U.S. dollars	$ 29,140	7.1884 (USD: RMB)	$ 955,365
U.S. dollars	50	34.0136 (USD: THB)	1,643
			$ 957,008
Foreign Currency Liabilities
Monetary items
U.S. dollars	790	7.1884 (USD: RMB)	$ 25,892

The Group recognized foreign exchange losses (gains), both realized and unrealized, of NT$(10,578) thousand and NT$27,911 thousand for 2025 and 2024, respectively. As the Group engages in transactions involving multiple foreign currencies and the functional currencies of the Group entities vary, it is impracticable to disclose foreign exchange gains or losses by each foreign currency with significant impact.

XXXIII. Additional Disclosures

(I) Information on Significant Transactions:

Financing provided to others. (Table 1)
Endorsements and guarantees provided for others. (Table 2)
Marketable securities held at the end of the period (excluding investments in subsidiaries, associates, and joint ventures). (None)
Purchases from or sales to related parties amounting to NT$100 million or more, or reaching 20% or more of paid-in capital. (Table 3)
Outstanding balances of receivables from related parties amounting to NT$100 million or more, or reaching 20% or more of paid-in capital. (Table 4)
Others: Business relationships and significant intercompany transactions and balances between the parent company and subsidiaries, and among subsidiaries. (Table 5)

(II) Information on Investees(Table 6)

(III) Information on Investments in Mainland China:

Information on investees in Mainland China, including the investee name, principal business activities, paid-in capital, investment method, status of capital remittance and repatriation, percentage of ownership, investment income or loss, carrying amount of the investment at the end of the period, repatriated investment income, and the ceiling on investments in Mainland China. (Table 7)
Significant transactions with investees in Mainland China, either directly or indirectly through a third region, including their prices, payment terms, and unrealized gains or losses (Table 8):

(1) Purchase amount and percentage, and the ending balance and percentage of the related payables.

(2) Sales amount and percentage, and the ending balance and percentage of the related receivables.

(3) Amounts of property transactions and the resulting gains or losses.

(4) Ending balances and purposes of endorsements, guarantees or collateral provided.

(5) The highest balances, ending balances, interest rate ranges, and total interest for the period relating to financing arrangements.

(6) Other transactions having a significant impact on profit or loss or financial position for the year, such as provision or receipt of service.

XXXIV. Segment Information

(I) Segment Revenue and Operating Results

The information provided to the chief operating decision maker for the purposes of resource allocation and assessment of segment performance focuses on the types of products or services delivered or provided. The Group’s reportable segments are the manufacturing and sales segments of sofas, sofa covers, other leather products, and cartons.

The chief operating decision maker regards subsidiaries engaged in the manufacturing and sales of sofas, sofa covers, other leather products, and cartons in each region as separate operating segments. However, for financial reporting purposes, the Group aggregated these operating segments into a single operating segment after considering the following factors:

67 -

The nature of the products and production processes are similar;
The sales methods and delivery methods of products to customers are similar.

(II) Revenue from Major Products and Services

An analysis of the Group’s major products from continuing operations is as follows:

	2025	2024
Sales of sofas, sofa covers and other leather products	$ 3,182,074	$ 3,596,521
Sales of cartons	242,886	98,894
Total	$ 3,424,960	$ 3,695,415

(III) Geographical Information

The Group primarily operates in five regions - Macau, Taiwan, the United States, Cambodia, and China.

Information about revenue from external customers from continuing operations by customer location and non-current assets by asset location is presented as follows:

	Revenue from External Customers
	2025	2024
USA	$ 2,701,190	$ 2,973,383
China	164,331	228,865
Others	559,439	493,167
	$ 3,424,960	$ 3,695,415
	Non-current Assets
---	---	---
	December 31, 2025	December 31, 2024
Cambodia	$ 1,889,130	$ 2,027,405
China	516,620	618,432
Others	46,016	66,659
	$ 2,451,766	$ 2,712,496

Non-current assets exclude deferred income tax assets.

68 -

69 -

(IV) Information on Major Customers

Customers contributing 10% or more of the Group’s total revenue were as follows:

	2025	2024
Customer B	$ 1,040,632	$ 1,021,965
Customer C	638,573	459,154
Customer A	507,777	1,067,584
	$ 2,186,982	$ 2,548,703

Shane Global Holding Inc. and Subsidiaries

Financing Provided to Others

2025

Table 1
Unit: NT$ thousand / foreign currency thousand

No.	Company providing the loan	Borrower	Account title	Whether a related party	Highest balance (credit limit) during the period	Ending balance (credit limit)	Actual amount drawn down	Interest rate range (%)	Amount of business transactions	Reason for the necessity of short-term financing	Allowance for doubtful accounts recognized	Collateral		Limit on loans to individual counterparties (Note 1)	Aggregate limit on loans (Note 2)	Remarks
												Name	Value
1	Shayne International Holdings Limited	SHANE GLOBAL HOLDING INC.	Other receivable s - related parties	Yes	$ 235,725 (USD 7,500)	$ 235,725 (USD 7,500)	$ 235,725 (USD 7,500)	2.55%	Short-term financing	$ -	Working capital needs	$ -	-	$ -	$ 1,992,540	$ 1,992,540	Notes 4 and 5
3	Shayne (Macao Commercial Offshore) Limited	Shayne International Holdings Limited	Other receivable s - related parties	Yes	6,600 (USD 210)	- (USD -)	- (USD -)	-	Short-term financing	-	Working capital needs	-	-	-	148,566	148,566	Notes 4 and 5
		Xin Huatong (Cambodia) Packaging Co., Ltd.	Other receivable s - related parties	Yes	6,286 (USD 200)	6,286 (USD 200)	6,286 (USD 200)	6.50%	Short-term financing	-	Working capital needs	-	-	-	99,044	148,566	Notes 4 and 5
		SHANE GLOBAL HOLDING INC.	Other receivable s - related parties	Yes	220,010 (USD 7,000)	- (USD -)	- (USD -)	-	Short-term financing	-	Working capital needs	-	-	-	148,566	148,566	Notes 4 and 5
6	Hangzhou Hua Tong Industries Inc.	Hangzhou Rilong Leather Goods Co., Ltd.	Other receivable s - related parties	Yes	57,874 (CNY 12,940)	57,874 (CNY 12,940)	57,874 (CNY 12,940)	0.95%-1.25%	Short-term financing	-	Working capital needs	-	-	-	498,181	498,181	Notes 4 and 5

Note 1: For companies in which the Company directly or indirectly holds more than 50% of the voting shares, if there is a business need for short-term financing, the maximum amount of funds loaned to a single enterprise shall not exceed 40% of the lender company's net worth as audited or reviewed by a certified public accountant in the most recent financial statements. If the loans of fund occurs between companies in which the Company directly or indirectly holds 100% of the voting shares, the maximum amount of loan shall be limited to 60% of the net worth of each lending company.
Note 2: The aggregate limit for financing provided to others shall not exceed 40% of the Company's latest net worth as stated in the financial statements audited or reviewed by an accountant. For financing between companies in which the Company directly or indirectly holds more than 50% of the voting shares, the aggregate financing limit shall not exceed 40% of the lending company's net worth. For financing between companies in which the Company directly or indirectly holds 100% of the voting shares, the aggregate financing limit shall not exceed 60% of the lending company's net worth.
Note 3: The highest balances (credit limits), ending balances (credit limits), and actual amounts drawn down for financing provided to others were translated using the exchange rates at the balance sheet dates.
Note 4: The total interest amounts were NT$28 thousand for Shayne International Holdings Limited, NT$405 thousand for Xin Huatong (Cambodia) Packaging Co., Ltd., NT$5,322 thousand for SHANE GLOBAL HOLDING INC., and NT$662 thousand for Hangzhou Rilong Leather Co., Ltd.
Note 5: The balances and transactions had been eliminated upon consolidation in the preparation of these consolidated financial statements.

Shane Global Holding Inc. and Subsidiaries
Endorsements and Guarantees Provided for Others
2025

Table 2
Unit: NT$ thousand / foreign currency thousand

No.	Name of endorsing/guaranteeing company	Name of endorsed/guaranteed party		Limit on endorsements/guarantees provided to a single entity (Note 2)	Highest balance of endorsements/guarantees during the period	Ending balance of endorsements/guarantees	Actual amount drawn down	Amount secured by collateral for endorsements/guarantees	Ratio of accumulated endorsement/guarantee amount to the latest net worth shown in the financial statements (%)	Maximum limit for endorsements/guarantees (Note 1)	Endorsements/guarantees provided by the parent company for subsidiaries	Endorsements/guarantees provided by subsidiaries for the parent company	Endorsements/guarantees provided for entities in Mainland China	Remarks
		Company name	Relationship (Note 3)
0	SHANE GLOBAL HOLDING INC.	Shayne International Holdings Limited	(2)	$ 3,079,246	$ 911,470 (USD 29,000)	$ 628,600 (USD 20,000)	$ 245,154 (USD7,800)	$ -	20	$ 3,079,246	Yes	No	No	Notes 5 and 7
6	Hangzhou Hua Tong Industries Inc.	Shayne (Macao Commercial Offshore) Limited	(4)	307,925	295,185 (CNY 66,000)	295,185 (CNY 66,000)	- (CNY -)	16,442	10	307,925	No	No	No	Notes 6 and 7

Note 1: The maximum limit for endorsements and guarantees provided to others shall not exceed 140% of the Company's latest net worth as shown in the financial statements audited or reviewed by an accountant. Among them, the aggregate amount of endorsements and guarantees provided by the Company to subsidiaries in which it directly or indirectly holds more than 90% of the voting shares shall not exceed 100% of the Company's latest net worth as shown in the financial statements audited or reviewed by an accountant. Endorsements and guarantees among subsidiaries in which the Company directly or indirectly holds more than 90% of the voting shares shall not exceed 10% of the Company's latest net worth as shown in the financial statements audited or reviewed by an accountant, while the aggregate amount of all other external endorsements and guarantees shall not exceed 40% of the Company's latest net worth as shown in the financial statements audited or reviewed by an accountant.
Note 2: For endorsements and guarantees provided to a single entity, the aggregate amount of endorsements and guarantees provided by the Company to subsidiaries in which it directly or indirectly holds more than 90% of the voting shares shall not exceed 100% of the Company's latest net worth as shown in the financial statements audited or reviewed by an accountant. The aggregate amount of endorsements and guarantees among subsidiaries in which the Company directly or indirectly holds more than 90% of the voting shares shall not exceed 10% of the Company's latest net worth as shown in the financial statements audited or reviewed by an accountant.
Note 3: The relationship between the endorsing/guaranteeing party and the endorsed/guaranteed party falls into one of the following seven categories; only the category number is indicated:

(1) A company having business transactions with the Company.
(2) A company in which the Company directly and indirectly holds more than 50% of the voting shares.
(3) A company that directly and indirectly holds more than 50% of the Company's voting shares.
(4) Companies in which the Company directly or indirectly holds 90% or more of the voting shares.
(5) Companies providing mutual guarantees in accordance with contractual requirements for construction projects or joint development arrangements.
(6) Companies for which all investing shareholders provide endorsements and guarantees in proportion to their shareholding percentages due to joint investment relationships.
(7) Companies in the same industry providing joint performance guarantees for pre-sale housing sales contracts in accordance with consumer protection regulations.

Note 4: The highest balance, ending balance, and actual amount drawn down for endorsements and guarantees were translated using the exchange rates at the balance sheet dates.

Note 5: The DBS Bank facility of USD 10,000 thousand was jointly guaranteed by Mr. Hsieh, Chih-Tung and Mr. Hsieh, Ming-Yun for the same amount.

Note 6: The guarantee was secured by the property and land use rights of Hangzhou Hua Tong Industries Inc.; the purpose of the guarantee was to support the issuance of letters of credit for Shayne (Macao Commercial Offshore) Limited.

Note 7: The balances and transactions had been eliminated upon consolidation in the preparation of these consolidated financial statements.

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Shane Global Holding Inc. and Subsidiaries

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

2025

Table 3
Unit: NT$ thousand

Company engaging in purchases (sales)	Name of counterparty	Relationship	Transaction details				Circumstances and reasons for differences between transaction terms and general transactions		Notes/accounts receivable (payable)		Remarks
			Purchases (sales)	Amounts	Percentage of total purchases (sales) %	Credit term	Unit price	Credit term	Balance	Percentage of total notes/ accounts receivable (payable) %
Shayne (Macao Commercial Offshore) Limited	Hangzhou Hua Tong Industries Inc.	Same ultimate parent company	Purchases	$ 872,326	35	90 days after month-end	$ -	-	($ 654,076)	( 82 )	Note
	Shane (Cambodia) Furniture Co., Ltd.	Same ultimate parent company	Purchases	1,537,702	65	#	-	-	-	-	#
Hangzhou Hua Tong Industries Inc.	Shayne (Macao Commercial Offshore) Limited	Same ultimate parent company	(Sales)	( 872,326 )	( 78 )	#	-	-	654,076	92	#
Shane (Cambodia) Furniture Co., Ltd.	Shayne (Macao Commercial Offshore) Limited	Same ultimate parent company	(Sales)	( 1,537,702 )	( 100 )	#	-	-	-	-	#

Note:Intercompany balances and transactions have been eliminated upon consolidation.

Shane Global Holding Inc. and Subsidiaries
Receivables from Related Parties Amounting to NT$100 Million or More, or 20% or More of Paid-in Capital
December 31, 2025

Table 4
Unit: NT$ thousand

Company recognizing receivables	Name of counterparty	Relationship	Ending balance of receivables from related parties	Turnover rate	Overdue receivables from related parties		Amount of receivables from related parties collected after the reporting period (Note 1)	Amount of loss allowance recognized	Remarks
					Amount	Handling method
Shayne International Holdings Limited	SHANE GLOBAL HOLDING INC.	Subsidiary	Other receivables – financing and interest: NT$238,072 thousand	-	$ -	-	$ -	$ -	-
Hangzhou Hua Tong Industries Inc.	Shayne (Macao Commercial Offshore) Limited	Same ultimate parent company	Accounts receivable: NT$654,076 thousand	1.16	474,149	Subject to the Group’s intercompany fund allocation arrangements	100,744	-	-

Note 1: Represents the amount collected during the period from January 1, 2026 to March 12, 2026.
Note 2: The balances and transactions had been eliminated upon consolidation in the preparation of these consolidated financial statements.

73 -

Shane Global Holding Inc. and Subsidiaries
Business Relationships and Significant Intercompany Transactions and Balances Between the Parent Company and Subsidiaries, and Among Subsidiaries
2025

Table 5
Unit: NT$ thousand

No.	Name of transacting party	Counterparty	Relationship with the transacting party (Note 3)	Details of transactions
				Account title	Amount (Note 1)	Transaction terms	Percentage of consolidated total revenue or total assets (%) (Note 2)
0	SHANE GLOBAL HOLDING INC.	Shayne International Holdings Limited	(1)	Endorsements and guarantees	$ 628,600	—	13
1	Shayne International Holdings Limited	SHANE GLOBAL HOLDING INC.	(2)	Retained earnings	547,883	Earnings distribution	12
				Other receivables - related parties	238,072	Financing and interest	5
3	Shayne (Macao Commercial Offshore) Limited	Shayne International Holdings Limited	(3)	Retained earnings	547,883	Earnings distribution	12
6	Hangzhou Hua Tong Industries Inc.	Shayne (Macao Commercial Offshore) Limited	(3)	Endorsements and guarantees	295,185	—	6
				Sales revenue	872,326	Determined on a transaction-by-transaction basis; payment due 90 days after month-end	25
				Accounts receivable - related parties	654,076	—	14
14	Shane (Cambodia) Furniture Co., Ltd.	Shayne (Macao Commercial Offshore) Limited	(3)	Sales revenue	1,537,702	Determined on a transaction-by-transaction basis; payment due 90 days after month-end	45

Note 1: This table discloses only one-way transaction information. The above transactions were eliminated upon consolidation in the preparation of these consolidated financial statements.
Note 2: For the calculation of the percentage of transaction amounts to consolidated total revenue or total assets, balance sheet accounts are calculated based on ending balances as a percentage of consolidated total assets, while income statement accounts are calculated based on accumulated amounts as a percentage of consolidated total revenue.
Note 3: The relationships with the transacting parties are categorized into the following three types and presented separately as follows:
1. Parent company to subsidiary.
2. Subsidiaries to parent company.
3. Subsidiaries to subsidiary.
Note 4: This table discloses significant transaction amounts exceeding NT$100,000 thousand.

Shane Global Holding Inc. and Subsidiaries

Information on Investees, Locations, and Other Related Information

2025

Table 6
(Unit: NTS thousand and foreign currency thousand, except for number of shares)

Name of Investor	Name of investee	Location	Principal business activities	Original investment amount (Note 1)		Shares held as at end of period
				Ending balance for the current period	Ending balance for the prior period	Number of shares	Ownership percentage (%)	Carrying amount
SHANE GLOBAL HOLDING INC.
Shayne International Holdings Limited	Shayne International Holdings Limited	The Cayman Islands	Holding Company	$ 851,848
(USD 25,987)	$ 851,848
(USD 25,987)	2,598,700,000	100	$ 3,320,900	$ 258,572	$ 258,572	Notes 2 and 3
	Shayne Holding Inc.	British Virgin Islands	Holding Company	1,060,458
(USD 32,316)	1,060,458
(USD 32,316)	16,157,908	100	1,149,247	(183,916)	(183,916)	n
	Shayne (Macao Commercial Offshore) Limited	Macau	Sales of sofas, sofa covers, and other leather products	8,711
(HKD 2,146)	8,711
(HKD 2,146)	-	100	255,717	240,777	240,777	Notes 2, 3, and 4
	Spectra Home LLC	United States	Sales of sofas, sofa covers, and other leather products	259,475
(USD 8,187)	259,475
(USD 8,187)	-	100	11,411	(6,621)	(6,621)	Notes 2 and 3
	JV International, LLC	United States	Sales of sofas, sofa covers, and other leather products	62,921
(USD 1,950)	62,921
(USD 1,950)	-	100	5,172	(20)	(20)	n
	Shayne USA, LLC	United States	Sales of sofas, sofa covers, and other leather products	21,866
(USD 696)	19,964
(USD 636)	-	100	459	(2,093)	(2,093)	n
	Shayne Furniture (Thailand) Co., Ltd.	Thailand	Manufacturing and sales of sofas, sofa covers, and other leather products	324,249
(THB 341,018)	324,249
(THB 341,018)	3,410,182	100	11,097	(533)	(533)	n
	Shane (Cambodia) Furniture Co., Ltd.	Cambodia	Manufacturing and sales of sofas, sofa covers, and other leather products	1,755,743
(USD 60,453)	1,739,935
(USD 59,958)	12,091	100	2,031,964	244,876	244,876	n
	Xin Huatong (Cambodia) Packaging Co., Ltd.	Cambodia	Manufacture and sale of product packaging materials.	42,672
(USD 1,530)	42,672
(USD 1,530)	1,530	51	42,297	6,111	3,117	n

Note 1: The original investment amount does not include the investment amount in the investee prior to the acquisition date.
Note 2: The related investment profit or loss recognized was based on the investee's financial statements for the corresponding period.
Note 3: The balances and transactions had been eliminated upon consolidation in the preparation of these consolidated financial statements.
Note 4: The carrying amount of investments held at period-end includes goodwill of NTS8,107 thousand.
Note 5: For information relating to investments in Mainland China, please refer to Table 7.

Shane Global Holding Inc. and Subsidiaries
Information on Investments in Mainland China
2025

Table 7
Unit: NT$ thousand / Foreign currencies thousand

Name of investee in Mainland China	Principal business activities	Paid-in capital	Investment method (Note 1)	Accumulated investment remitted from Taiwan at beginning of period	Investment remitted or repatriated during the period		Accumulated investment remitted from Taiwan at end of period	Percentage of direct or indirect ownership held by the Company (%)	Current period profit (loss) of the investee	Investment profit (loss) recognized for the current period (Notes 2(2)2. and 4)	Carrying amount of investment at end of period (Note 4)	Accumulated investment income remitted back as of the end of the period	Remarks
					Remitted out	Repatriated
Hangzhou Hua Tong Industries Inc.	Manufacturing and sales of sofas, sofa covers, and other leather products	$ 966,591 (USD 32,000)	(2)	$ -	$ -	$ -	$ -	97%	($ 193,950)	($ 181,377)	$ 1,209,909	$ -	Note 6
Hangzhou Rilong Leather Goods Co., Ltd.	Manufacturing and sales of leather products	31,875 (USD 1,000)	(2)	-	-	-	-	100%	( 2,559)	( 2,559)	( 63,851)	-	-
Ke Tu Furniture (Shanghai) Co., Ltd.	Sales of sofas, sofa covers, and other leather products	(RMB -)	(3)	-	-	-	-	-	( 1)	( 1)	-	-	Note 7
Hangzhou Ke Tu Trading Co., Ltd.	Sales and procurement of raw materials for sofas, sofa covers, and other leather products	21,690 (RMB 5,000)	(3)	-	-	-	-	97%	( 2,442)	( 2,369)	29,291	-	-
Accumulated investment remitted from Taiwan to Mainland China at end of period	Investment amount approved by the Investment Commission, Ministry of Economic Affairs	Investment ceiling for investments in Mainland China as prescribed by the Investment Commission, Ministry of Economic Affairs
---	---	---
Note 5	Note 5	Note 5

Note 1: The methods of investment are classified into the following three categories; only the category number is indicated:
(1) Direct investment in Mainland China.
(2) Reinvestment in Mainland China through a company in a third region (Shayne Holding Inc.).
(3) Other methods (investment by Hangzhou Hua Tong Industries, Mainland China).

Note 2: For the column Investment profit (loss) recognized for the current period
(1) If the investee is still in the preparation stage and no investment profit or loss has been recognized, this should be noted.
(2) The basis for recognizing investment profit or loss falls into one of the following three categories and should be specified:
1. Financial statements audited by an international accounting firm that has a cooperative relationship with accounting firm in the Republic of China (Taiwan).
2. Financial statements audited by the accounting firm auditing the Taiwan parent company.
3. Financial statements of the investee for the corresponding period that have not been audited by accountants.

Note 3: The relevant amounts in this table are presented in New Taiwan dollars.

Note 4: The balances and transactions had been eliminated upon consolidation in the preparation of these consolidated financial statements.

Note 5: The Company is not a corporation established in the Republic of China (Taiwan), so it is not applicable.

Note 6: The investment profit and loss recognized in the current period is the net amount after adjusting the realized and unrealized gross profit of the counter-current transactions in the current period.

Note 7: The Company indirectly held Ke Tu Furniture (Shanghai) Co., Ltd., which ceased operations by the end of the first quarter of 2025, and has completed the liquidation of all rights and obligations and the cancellation of business registration.

76 -

Shane Global Holding Inc. and Subsidiaries
Significant Transactions with Investees in Mainland China, Either Directly or Indirectly Through a Third Region,
Including Prices, Payment Terms, Unrealized Gains or Losses, and Other Related Information
2025

Table 8

Purchase amounts and percentages, and the ending balances and percentages of related accounts payable: Please refer to Table 3.
Sales amount and percentage, and the ending balance and percentage of the related receivables: None.
Property transaction amount and the amount of profits and losses: None.
Ending balances and purposes of endorsements, guarantees, or collateral provided: Please refer to Table 2.
Highest balances, ending balances, interest rate ranges, and total interest for the period relating to financing arrangements: Please refer to Table 1.
Other transactions having a significant impact on profit or loss or financial position for the year, such as provision or receipt of service: None.
77 -

AI assistant

Shane Global Audit Report / Information 2025

52755_rns_2026-05-14_ae81f8f0-1304-406c-8774-88199ddc908a.pdf

Opinion

Basis for Opinion

Key Audit Matters

Occurrence of Revenue

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

Auditor's Responsibilities for the Audit of the Consolidated Financial Statements

Shane Global Holding Inc. and Subsidiaries

Consolidated Statement of Cash Flows

IV. Summary of Significant Accounting Policies

(I) Statement of Compliance

(II) Basis of Preparation

(III) Classification of Current and Non-current Assets and Liabilities

XIII. Lease Agreement

XVII. Loans

(IV) Other Equity Items

(V) Non-controlling interests

XXV. Cash Flows Information

(I) Non-cash Transactions

(II) Changes in Liabilities Arising from Financing Activities 2025

XXVI. Capital Risks Management

XXVII. Financial Instruments

(I) Fair Value Information – Financial Instruments Not Measured at Fair Value

(II) Categories of Financial Instruments

Sensitivity Analysis

XXIX. Assets Pledged as Collateral

XXX. Significant Contingent Liabilities and Unrecognized Contractual Commitments

XXXIII. Additional Disclosures

Shane Global Holding Inc. and Subsidiaries

AI assistant

Shane Global — Audit Report / Information 2025

52755_rns_2026-05-14_ae81f8f0-1304-406c-8774-88199ddc908a.pdf

Opinion

Basis for Opinion

Key Audit Matters

Occurrence of Revenue

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

Auditor's Responsibilities for the Audit of the Consolidated Financial Statements

Shane Global Holding Inc. and Subsidiaries

Consolidated Statement of Cash Flows

IV. Summary of Significant Accounting Policies

(I) Statement of Compliance

(II) Basis of Preparation

(III) Classification of Current and Non-current Assets and Liabilities

XIII. Lease Agreement

XVII. Loans

(IV) Other Equity Items

(V) Non-controlling interests

XXV. Cash Flows Information

(I) Non-cash Transactions

(II) Changes in Liabilities Arising from Financing Activities 2025

XXVI. Capital Risks Management

XXVII. Financial Instruments

(I) Fair Value Information – Financial Instruments Not Measured at Fair Value

(II) Categories of Financial Instruments

Sensitivity Analysis

XXIX. Assets Pledged as Collateral

XXX. Significant Contingent Liabilities and Unrecognized Contractual Commitments

XXXIII. Additional Disclosures

Shane Global Holding Inc. and Subsidiaries

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Shane Global Audit Report / Information 2025