SINPHAR — Audit Report / Information 2024

Nov 13, 2024

Stock Code ： 1734

Sinphar Pharmaceutical Co., Ltd.

Parent Company Only Financial Statements for the Years Ended December 31, 2024 and 2023 and Independent Auditors’ Report

INDEPENDENT AUDITORS’ REPORT

The Board of Directors and Shareholders of

Sinphar Pharmaceutical Co., Ltd.

Opinion

We have audited the accompanying parent company only financial statements of Sinphar Pharmaceutical Co., Ltd. (the “Company”), which comprise the parent company only balance sheet as of December 31, 2024 and 2023 and the parent company only statements of comprehensive income, changes in equity and cash flows for the years ended December 31, 2024 and 2023, and the notes to the parent company only financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying parent company only financial statements present fairly, in all material respects, the financial position of the Company as of December 31,2024 and 2023, and its financial performance and its cash flows for the years ended December 31, 2024 and 2023, in accordance with the Regulation Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

We conducted our audits in accordance with the Regulation Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statements section of our report. We are independent of the Company in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. 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 parent company only financial statements for the year ended December 31, 2024. These matters were addressed in the context of our audit of the parent company only financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matters for the Company’s parent company only financial statements for the year ended December 31, 2024 are stated as follows:

Inventory Valuation

Please refer to Note 4(7.) and 5(2.) in the accompanying parent company only financial statements for related disclosures of the Company’s valuation of inventory accounting policies and critical accounting estimate and assumption.

• 1 -

The Company mainly engages in the production and sales of various types of drugs and food supplements. As the regulations to the pharmaceutical industry cause the cost to increase and meanwhile selling prices are less likely to be affected as they are covered by the health insurance system. Furthermore, the price of food supplement inventory fluctuates due to market competition and the impacts aroused from advertisements. Management assesses that the net realizable value of inventory involves material judgment. Hence, it is taken as a one of the key audit matters.

Our key audit procedures in response

Our procedures in relation to inventory valuation included:

1. Understand and evaluate the design and implementation of the internal control in relation to inventory.

2. Perform inventory counts, to identify if there are any inventories which are obsolete or damaged.

3. Obtain Inventory aging reports to analyses the changes in inventory age, and check the records of inventory changes to verify the correctness of inventory.

4. Evaluate the reasonableness of its inventory valuation policy of unmarketable items and obsolescence, and check the latest inventory sales price to evaluate the reasonableness of the net realizable value of the inventory.

5. Obtain evaluation documents for subsequent measurement of inventories and assess whether they have been measured in accordance with established accounting policies and review if the management’s disclosure on the evaluation of inventory is presented fairly.

Revenue Recognition

Please refer to Note 4(16.) and 5(2.) in the accompanying parent company only financial statements for related disclosures of the Company’s revenue recognition accounting policies and critical accounting estimate and assumption.

Some products of the Company provide discounts or sales incentives based on the terms of the sales contract. Since the recognition of the revenue is measured on the net basis of the related discounts and incentives, we consider the revenue recognition as a key audit matter.

Our key audit procedures in response

Our procedures in relation to the revenue recognition included:

1. Evaluate the design and implementation of the internal control in relation to the revenue recognition.

2. Perform sales contract checks to verify whether the records on the recognition of sales revenue agree with the related contract, and evaluate the fairness of the management’s estimated sales discounts and sales incentives.

3. Assess whether the management’s accounting treatments and disclosure in relation to sales discounts and sales incentives are presented fairly.

Responsibilities of Management and Those Charged with Governance for the Parent Company Only Financial Statements

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

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

Those charged with governance (including members of the Audit Committee) are responsible for overseeing the Company’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statements

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

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

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

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

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

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

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

6. Obtain sufficient appropriate audit evidence regarding the financial information of the entity or business activities within the Company to express an opinion on the parent company only financial statements. We are responsible for direction, supervision and performance of the investee audit. We remain solely responsible for our audit opinion.

7. 3 -

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements for the year ended December 31, 2024 and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audit resulting in this independent auditors’ report are Ya Quan Zhang and Po Ju Chou.

Crowe (TW) CPAs Taipei, Taiwan The Republic of China

March 5, 2025

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

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Sinphar Pharmaceutical Co., Ltd. PARENT COMPANY ONLY BALANCE SHEETS For the years ended December 31, 2024 and 2023

(In Thousands of New Taiwan Dollars)

ASSETS CURRENT ASSETS	Note	% Amount December 31,2024	% Amount December 31,2024	Amount % December 31,2023	Amount % December 31,2023
		Amount		Amount
Cash and cash equivalents Financial assets at amortized cost – current Notes receivable, net Accounts receivable, net Inventories Prepayments Other current assets Total current assets	6 (1) 6 (2) 6 (3) 6 (4) and 6(19) 6 (5) 7 (3) 6 (6) 6 (6) 6 (7) 6 (8), 7 (3) and 8 6 (9) and 8 6 (10) and 8 6 (24)	$ 701,496 3,926 146,625 467,592 606,351 41,239 2,980 1,970,209	12 - 2 8 10 1 - 33	$ 700,998 - 163,900 426,002 705,774 35,781 4,773 2,037,228	12 - 3 7 12 1 - 35
NONCURRENT ASSETS
Financial assets at fair value through profit and loss, non-current Financial assets at fair value through other comprehensive income, non-current		44,981 50,732 1,133,520 2,320,362 110,604 28,282 185,366 29,114 18,498 20,346 3,941,805 $ 5,912,014	1 1 19 39 2 1 3 1 - - 67 100	2,394 10,136 1,136,111 2,279,559 111,388 20,711 170,856 19,954 24,736 30,762 3,806,607 $ 5,843,835	- - 20 39 2 - 3 - - 1 65 100
Investments accounted for using equity method Property, plant and equipment Investment property, net Intangible assets Deferred tax assets Prepayments for equipment Refundable deposits Other non-current assets Total non-current assets TOTAL
LIABILITIES AND EQUITY CURRENT LIABILITIES
Short-term loans Contract liabilities-current Notes payable	6 (11) 6 (19)	$ 330,000 93,389 38 186,539 303,802 36,918 348,976 42,494 1,342,156 1,175,941 15,089 115,627 1,306,657 2,648,813 1,811,398 924,140 179,959 137,171 331,295 648,425 (120,762) 3,263,201 $ 5,912,014	6 1 - 3 5 1 6 1 23	$ 360,000 84,352 - 302,196 290,614 - 48,490 37,254 1,122,906	6 1 - 5 5 - 1 1 19
Accounts payable	7 (3)
Other payable Current tax liabilities Long-term loans - current portion Other current liabilities, others Total current liabilities	6 (12) and 7(3) 6 (13) and 8 6 (13) and 8 6 (14) 6 (24) and 7(3) 6 (15) 6 (16) 6 (17) 6 (18)
NONCURRENT LIABILITIES
Long-term loans Net defined benefit liability, non-current Other non-current liabilities, others			20 - 2 22 45 31 15 3 2 6 11 (2) 55 100	1,486,473 35,552 100,566 1,622,591 2,745,497 1,677,221 924,140 142,979 121,367 369,802 634,148 (137,171) 3,098,338 $ 5,843,835	25 1 2 28 47 29 16 2 2 6 10 (2) 53 100
Total non-current liabilities
Total liabilities EQUITY Capital stock Capital surplus Retained earnings Legal capital reserve Special capital reserve Unappropriated retained earnings
Total retained earnings
Other Equity Total equity TOTAL LIABILITIES AND EQUITY

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

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Sinphar Pharmaceutical Co., Ltd.

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

For the years ended December 31, 2024 and 2023

(In Thousands of New Taiwan Dollars)

		2024		2023
ITEM	Note	Amount $ 2,860,315 (1,726,564) 1,133,751 (768) 568 1,133,551 (528,180) (157,284) (117,682) - (803,146) 330,405 11,622 36,953 10,812 (35,657) (30,241) (6,511) 323,894 (19,189) 304,705 11,471 (611) (5,249) 5,611 27,834 2 (5,567) 22,269 27,880 $ 332,585	%	Amount	%
NET REVENUE COST OF REVENUE GROSS PROFIT Less: Unrealized profit on sales Add: Realized profit on sales GROSS PROFIT OPERATING EXPENSES Selling expenses Administrative expenses Research and development expenses Expected credit impairment loss Total operating expenses NET OPERATIONS INCOME NON-OPERATING INCOME AND EXPENSES Interest income Other income Other gains and losses Finance costs Share of the loss of subsidiaries and associated and joint ventures accounted for using equity method Total non-operating income and expenses INCOME BEFORE INCOME TAX INCOME TAX (EXPENSE) BENEFIT PROFIT OTHER COMPREHENSIVE INCOME (LOSS)	6 (19) and 7 (3) 6 (5), 6(22) and 7 (3) 6 (22) and 7 (3) 6 (4) 6 (20) and 7 (3) 6 (21) and 7 (3) 6 (23) 6 (7) 6 (24) 6 (25)		100 (60) 40 - - 40 (18) (6) (4) - (28) 12 1 1 - (1) (1) - 12 (1) 11 - - - - 1 - - 1 1 12	$ 2,717,210 (1,684,194) 1,033,016 (568) 371 1,032,819 (433,725) (136,083) (122,146) (1,699) (693,653) 339,166 7,516 36,774 (4,892) (32,114) (35,189) (27,905) 311,261 63,909 375,170 (3,736) (1,922) (1,862) (7,520) (15,045) 17 3,009 (12,019) (19,539) $ 355,631	100 (62) 38 - - 38 (16) (5) (4) - (25) 13 - 1 - (1) (1) (1) 12 2 14 - - - - (1) - - (1) (1) 13
Items that will not be reclassified subsequently to profit or loss: Remeasurement of defined benefit obligation Unrealized loss from investments in equity instruments measured at fair value through other comprehensive income Share of other comprehensive loss of subsidiaries, associates and joint ventures accounted for using equity method Items that may be reclassified subsequently to profit or loss:
Exchange differences arising on translation of foreign operations Share of other comprehensive income of subsidiaries, associates and joint ventures accounted for using equity method
Income tax related to components of other comprehensive income that will be reclassified to profit or loss
Other comprehensive income (loss) for the year, net of income tax
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
EARNINGS PER SHARE		$ 1.68
Basic earnings per share				$ 2.07
Diluted earnings per share		$ 1.68		$ 2.07

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

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Sinphar Pharmaceutical Co., Ltd.

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY For the years ended December 31, 2024 and 2023

(In Thousands of New Taiwan Dollars)

For the years ended December 31, 2024 and 2023 (In Thousands of New Taiwan Dollars)
	Capital Stock						Retained Earning			Other		$ (40,667) - - - - - - (3,784) (3,784) (44,451) - - - - - - (5,860) (5,860) $ (50,311) Unrealized Gain(Loss) on Financial Assets at Fair Value Through Other Comprehensive Income EquityInterests			2,930,230 - - (167,722) (167,722) (19,801) 375,170 (19,539) 355,631 3,098,338 - - (167,722) - (167,722) 304,705 27,880 332,585 Total Equity
ITEM	Common Stock		Capital Surplus		Legal Capital Reserve		Special Capital Reserve		Unappropriated Retained Earnings	$ (80,701) - - - - - - (12,019) (12,019) (92,720) - - - - - - 22,269 22,269 $ (70,451) Foreign Currency Translation Reserve
Balance, January 1, 2023	$ 1,677,221 - - - - - - - - 1,677,221 - - - 134,177 134,177 - - - $ 1,811,398	$	929,972 - - - - (5,832) - - - 924,140 - - - - - - - - 924,140	$	119,606 23,373 - - 23,373 - - - - 142,979 36,980 - - - 36,980 - - - 179,959	$	91,075 - 30,292 - 30,292 - - - - 121,367 - 15,804 - - 15,804 - - - 137,171	$	233,724 (23,373) (30,292) (167,722) (221,387) (13,969) 375,170 (3,736) 371,434 369,802 (36,980) (15,804) (167,722) (134,177) (354,683) 304,705 11,471 316,176 331,295	$		$		$
Appropriations of earnings Legal reserve appropriated
Special reserve appropriated Cash dividends of ordinary share Total appropriations of earnings
Other changes in capital surplus
Changes in ownership interests in subsidiaries
Net profit in 2023 Other comprehensive income (loss) in 2023, net of income tax Total comprehensive income (loss) in 2023 Balance, December 31, 2023 Appropriations of earnings Legal reserve appropriated
Special reserve appropriated Cash dividends of ordinary share Stock dividends of ordinary shares Total appropriations of earnings Net profit in 2024 Other comprehensive income (loss) in 2024, net of income tax Total comprehensive income (loss) in 2024
Balance, December 31, 2024		$		$		$		$		$		$		$	3,263,201

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

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Sinphar Pharmaceutical Co., Ltd. PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS For the years ended December 31, 2024 and 2023

(In Thousands of New Taiwan Dollars)

For the years ended December 31, 2024 and 2023 Sinphar Pharmaceutical Co., Ltd. PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars)
ITEM CASH FLOWS FROM OPERATING ACTIVITIES	2024	2023
Income before income tax Adjustments for: Depreciation expense (including investment property) Amortization expense Expected credit impairment loss Interest expense Interest income	$ 323,894 159,846 25,989 - 35,657 (11,622) 30,241 - 768 (568) 17,275 (41,590) 99,423 (5,458) 1,801 9,037 38 (115,657) 10,996 5,240 (8,992) 12,737 549,055 11,622 (35,375) (1,232) 524,070 (47,650) (41,207) (3,926) (157,505) - 6,238 (16,179) (1,853) (54,722) - (316,804) (30,000) 50,000 (60,046) 1,000 (167,722) (206,768) 498 700,998 $ 701,496	$ 311,261 145,015 29,193 1,699 32,114 (7,516) 35,189 (5,145) 568 (371) 14,771 29,039 (90,718) 817 27 (8,883) - (11,525) 12,250 (5,360) (4,162) (19) 478,244 7,516 (32,026) (41,246) 412,488 (119,237) (2,450) - (176,243) 5,842 (6,906) (5,230) (27,766) (68,153) 71,824 (328,319) - 160,000 (77,972) (532) (167,722) (86,226) (2,057) 703,055 $ 700,998
Share of loss of subsidiaries and associates and joint ventures accounted for using equity method, net Loss (gain) on disposal of property, plant and equipment
Unrealized profit on sales Realized profit on sales Changes in operating assets and liabilities: Notes receivable, net Accounts receivable, net Inventories Prepayments Other current assets Contract liabilities Notes payable Accounts payable Other payable Other current liabilities Net defined benefit liability Other operating liabilities Cash generated from operations
Interest received
Interest paid Income taxes paid
Net cash generated from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of investments accounted for using equity method
Acquisition of financial assets at fair value through other comprehensive income Acquisition of financial assets at amortized cost Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment
Decrease (increase) in refundable deposits Acquisition of intangible assets
Increase in other non-current assets
Increase in prepayments for equipment Dividends received
Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Decrease in short-term loan Proceeds from long-term debt Repayments of long-term debt Increase (decrease) in redundable deposits Cash dividends paid Net cash used in financing activities NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD CASH AND CASH EQUIVALENTS AT END OF THE PERIOD

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

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Sinphar Pharmaceutical Co., Ltd.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS

FOR THE YEAR ENDED DECEMBER 31, 2024 and 2023

(Amounts in Thousands of New Taiwan Dollars , Unless Specified Otherwise)

1. GENERAL INFORMATION

Sinphar Pharmaceutical Co., Ltd. (the Company or Sinphar) was incorporated in the Republic of China (“R.O.C.”) on July 2, 1977. Sinphar mainly engages in the production, processing and trading of various Western medicines, Chinese medicines, medicinal cosmetics and detergents.

Sinphar’s shares have been listed on the Taipei Exchange since October 17, 2000. On August 26, 2002, Sinphar’s stocks were approved for listing on the Taiwan Stock Exchange. The address of its registered office and principal place of business is No.84, Zhongshan Rd., Dongshan Township, Yilan County, Taiwan.

The parent company only financial statements are presented in the Company’s functional currency, New Taiwan dollars.

2. APPROVAL OF FINANCIAL STATEMENTS

The accompanying parent company only financial statements were approved by the Company’s board of directors and issued on March 5, 2025.

1. APPLICATION OF NEW AND REVISED STANDARDS, AMENDMENTS AND INTERPRETATIONS

(1.) Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), Interpretations of IFRS (IFRIC), and Interpretations of IAS (SIC) (collectively, the “IFRSs”) endorsed and issued into effect by the Financial Supervisory Commission (FSC).

New standard, interpretation and amendments to the IFRSs endorsed by the FSC for application starting from 2024:

New Standards, Interpretations and Amendments Effective Date Announced by IASB Amendments to IAS 16 “Leases Liability in a Sale and Leaseback” January 1, 2024 (Note) Amendments to IAS 1 “Classification of Liabilities as Current or January 1, 2024 (Note) Non-current” Amendments to IAS 1 “Non-current Liabilities with Covenants” January 1, 2024 (Note) Amendments to IAS 7 and IFRS 7 “Supplier Finance January 1, 2024 (Note) Arrangements

Note: An entity shall apply these amendments for annual reporting periods beginning on or after January 1, 2024.

• A. Amendments to IAS 16 “Leases Liability in a Sale and Leaseback”

The amendment clarifies that for sale and leaseback transactions, if the transfer of assets is treated as a sale under IFRS 15, the seller and lessee’s liability arising from the leaseback shall be treated in accordance with the provisions of IFRS 16 relating to lease liabilities; however, if the transaction involves a variable lease payment that does not depend on an index or rate, the seller and lessee shall still determine and recognize the lease liability arising from the variable payment in a way that does not recognize the gain or loss related to the retained right of use. The difference between the subsequent actual lease payment amount and the reduced carrying amount of the lease liability is recognized in profit or loss.

• B. Amendments to IAS 1 “Classification of Liabilities as Current or Non-current”

This amendment clarifies that the determination of whether a liability is classified as non-current should be made by assessing whether the enterprise has a right at the end of the reporting period to defer settlement until - 9 -

at least 12 months after the reporting period. If the enterprise has such a right at the end of the reporting period, the liability should be classified as non-current regardless of whether the enterprise expects to exercise the right. If the enterprise must comply with specific conditions to have the right to defer, those specific conditions must have been complied with at the end of the reporting period in order for the liability to be classified as non-current, even if the creditor tests at a later date whether the enterprise has complied with those conditions.

In addition, the amendment stipulates that, for the purpose of liability classification, liquidation means the transfer of cash, other economic resources or the Company’s equity instruments to the counterparty that results in the extinguishment of the liability. However, if the terms of the liability may be extinguished by the transfer of the Company’s equity instruments at the option of the counterparty, and if the option is separately recognized in equity in accordance with IAS 32, “Financial Instruments: Presentation”, the foregoing does not affect the classification of the liability.

• C. Amendments to IAS 1 “Non-current Liabilities with Covenants”

The amendment further clarifies that only contractual terms that are required to be met before the end of the reporting period affect the classification of the liability at that date. Contractual terms that must be met within 12 months after the end of the reporting period do not affect the classification of liabilities. However, an enterprise should disclose in the notes the facts and circumstances of a liability classified as non-current at the end of the reporting period that may not be able to comply with the terms of the contract and must be settled within 12 months after the end of the reporting period.

• D. Amendments to IAS 7 and IFRS 7 “Supplier Finance Arrangements

Supplier financing arrangements involve one or more financing providers making payments to suppliers on behalf of an entity, and the entity agrees to repay the financing providers on the payment date agreed with the suppliers or a later date. The amendments to IAS 7 require an enterprise to disclose information about its supplier financing arrangements to enable users of financial statements to assess the impact of those arrangements on the enterprise’s liabilities, cash flows and liquidity risk exposures. The amendments to IFRS 7 include in the application guidance that an enterprise may also consider whether it has obtained or can obtain financing through supplier financing arrangements and whether such arrangements may result in a concentration of liquidity risk.

Based on the Company’s assessment, the New IFRSs above have no significant effect on the Company’s financial position and financial performance.

• (2.) Effect of new issuances of or amendments to IFRS Accounting Standards as endorsed by the FSC but not yet adopted by the Company.

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

New Standards,Interpretations and Amendments	Effective Date Announced byIASB
IAS 21“Lack of Exchangeability”	January 1, 2025

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

• (3.) New IFRSs issued by International Accounting Standards Board (“IASB”) but not yet endorsed and issued into effect by the FSC.

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

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Effective Date Announced by IASBy IASB IASB

New Standards, Interpretations and Amendments by IASBy IASB IASB Amendments to IFRS 9 and IFRS 7 “Classification and Measurement of January 1,2026 Financial Instruments” Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent January 1,2026 Electricity” Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between To be determined by IASB an Investor and its Associate or Joint Venture” IFRS 17 “Insurance Contracts” January 1, 2023 Amendments to IFRS 17 January 1, 2023 － Amendments to IFRS 17 “Initial Application of IFRS 17 and IFRS 9 January 1, 2023 Comparative Information” IFRS 18 “Presentation and Disclosure in Financial Statements” January 1, 2027 IFRS 19 “Subsidiaries without Public Accountability ： Disclosures” January 1, 2027 Annual Improvements to IFRS Accounting Standards – Volume 11 January 1, 2026

Except as described below, the Company assesses the application of the above standards, amendments and interpretations have not material impact on the Company financial position and financial performance.

• A. Amendments to IFRS 9 and IFRS 7 “Classification and Measurement of Financial Instruments”

• (A.) Clarify that a financial liability is derecognized on the settlement date and describe the accounting treatment for a financial liability (or part of it) that will be settled in cash using an electronic payment system to be discharged before the settlement date if, and only if, the entity has initiated a payment instruction that has resulted in:

  • a. The entity having no practical ability to withdraw, stop or cancel the payment instruction

  • b. The entity having no practical ability to access the cash to be used for settlement as a result of the payment instruction

  • c. The settlement risk associated with the electronic payment system being insignificant

• (B.) Clarify and add to the application guidance on how to assess whether contractual cash flows of a financial asset are solely payments of principal and interest (SPPI) on the principal amount outstanding. The amendments further address the assessment on the contractual cash flow that could change subject to a contingent event, for example, interests linked to an ESG metric, as well as the treatment of non-recourse assets and contractually linked instruments.

• (C.) Require additional disclosures for financial instruments with contractual terms that that could change contractual cash flows of a contingent event (including those that are ESG-linked). Disclosures include a qualitative description of the nature of the contingent event, quantitative information about the possible changes to contractual cash flows as well as the gross carrying amount of financial assets and the amortized cost of financial liabilities subject to those contractual terms.

• (D.) Require additional disclosures for equity instruments classified at fair value through other comprehensive income (FVTOCI). It is required to disclose the fair value gain or loss presented in OCI during the reporting period, showing separately the fair value gain or loss that relates to investments derecognized in the reporting period and the fair value gain or loss that relates to investments held at the end of the reporting period. If an entity derecognizes investments in equity instruments measured at FVTOCI during the reporting period, it is now required, under the amendments, to disclose any transfers of the cumulative gain or loss within equity during the reporting period related to the investments derecognized during that reporting period. Also, it is no longer required to disclose the fair value of each equity instruments designated at FVTOCI, this information can be provided by class of instruments.

• B. Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”

• 11 -

The amendments apply to contracts referencing nature-dependent electricity. These contracts are exposed an entity to variability in an underlying amount of electricity because the source of electricity generation depends on uncontrollable natural conditions.

• (A.) Clarification of the application of the "own-use" requirement for contracts referencing the purchase or sale of natural electricity :

Some contracts require an enterprise to buy and receipt of electricity when electricity generated, and the design and operation of the market in which the electricity is transacted in may also require unused electricity to be sold within a specified time. The amendments require an enterprise to assess if it has been, its past, current and expected future electricity transactions not exceeding 12 months based on reasonable and supportable information.

An enterprise will be a net purchaser of electricity if it buys sufficient electricity to offset the sales of any unused electricity in the same market in which the electricity is sold. The new amendment requires contracts related to own-use referencing natural-dependent electricity to disclose:

• a. The enterprise may faces risks of changes in basic electricity volume and to buy electricity during a delivery interval in which it cannot use the electricity;

• b. The estimated future cash flows of unrecognized contractual commitments from buying electricity under these contracts, disclosed in appropriate time bands;

• c. Qualitive and quantitative information about the effects on the entity’s financial performance for the reporting period.

• (B.) Clarification of how contracts referencing natural-dependent electricity designated as hedging instruments can apply hedge accounting:

An entity can designate contract referencing natural-dependent electricity as the hedging instrument in a hedge of forecast electricity transactions, to designate a variable nominal amount of forecast electricity transactions as the hedged item. This designated variable nominal amount must be aligned with the variable amount of nature-dependent electricity expected to be delivered by the generation facility as referenced in the hedging instrument. The cash flows of an in-scope contract designated as the hedging instrument are conditional on the occurrence of the forecast transaction that is designated as the hedged item in accordance with the Amendments, this forecast transaction is presumed to be highly probable.

Natural-dependent as hedging instruments, an entity must disaggregate the information about the terms and conditions of the hedging instruments by risk category required by IFRS 7.C. Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture”

• C. Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture”

The amendment resolve the difference between IFRS10 and IAS28, Transactions in which investors sell (invest) assets to their affiliated companies or joint ventures. Depending on the nature of the trading assets, all or part of the disposal gains and losses will be recognized.

• (A.) When the assets (invest) traded are in line with the "business", all gains and losses from the disposal will be recognized ；

• (B.) When the assets (invest) traded are not in line with the "business", only part of the gains and losses from the disposal within the scope of the interests of the non-related investors in the related enterprises or joint ventures can be recognized.

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• D. IFRS 18 “Presentation and Disclosure in Financial Statements”

• IFRS 18 “Presentation and Disclosure in Financial Statements” will replace IAS1 and update the structure of the consolidated income statement. Added new disclosures on management performance measurement, and strengthened the aggregation and segmentation principles applied to the main financial statements and notes.

• E. IFRS 19 “Subsidiaries without Public Accountability: Disclosures”

• IFRS 19 permits eligible subsidiaries to apply reduced disclosure requirements instead of the disclosure requirements in other IFRS Accounting Standards.

• F. Annual Improvements to IFRS Accounting Standards – Volume 11

• (A.) Hedge accounting by a first-time adopter (Amendments to IFRS 1)

• (B.) Gain or loss on derecognition (Amendments to IFRS 7)

• (C.) Introduction (Amendments to Illustrative Guidance accompanying IFRS 7)

• (D.) Credit risk disclosures (Amendments to Illustrative Guidance within IFRS 7)

• (E.) Disclosure of Deferred Difference between Fair Value and Transaction Price (Amendments to Illustrative Guidance accompanying IFRS 7)

• (F.) Derecognition of Lease Liabilities (Amendments to IFRS 9)

• (G.) Transaction price (Amendments to IFRS 9)

• (H.) Determination of a 'de facto agent' (Amendments to IFRS 10)

• (I. ) Cost method (Amendments to IFRS 7)

As of the date of the consolidated financial statements authorized for issue, the Company continues in evaluating the impact on its financial position and financial performance as a result of the initial adoption of the aforementioned standards or interpretations. The related impact will be disclosed when the Company completes the evaluation

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

• (1.) Statement of Compliance

The accompanying parent company only financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IFRSs endorsed by the FSC.

• (2.) Basis of Preparation of the Parent Company Only Financial Statement

• A. Except for the following items, the accompanying parent company only financial statements have been prepared on the historical cost basis:

  • (A.) The financial assets and liabilities measured at fair value through profit and loss (including derivative financial instruments).

  • (B.) The financial assets measured at fair value through other comprehensive income.

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

• B. The preparation of the parent company only financial statements in compliance with IFRSs endorsed by FSC requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in process of applying the Company’s accounting policies. The areas involving a high degree of judgment or

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complexity, or areas where assumptions and estimates are significant to the parent company only financial statements are disclosed in Note 5.

• C. The subsidiaries, associates and jointly controlled entities are incorporated in the parent company only financial statements under the equity method.

• (3.) Foreign Currencies

• A. Foreign currency transaction

Transactions in currencies other than the Company’s functional currency are recognized at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Exchange differences on monetary items arising from settlement or translation are recognized in profit or loss in the period. Non-monetary items measured at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured at historical cost in a foreign currency are not retranslated. Except for financial instruments at FVTOCI, financial instruments that are designated as foreign operation net hedge or qualified as cash flow hedge, the retranslation foreign exchange differences are recognized in other comprehensive income. In other cases, the exchange differences are recognized in profit and loss.

• B. Translation of foreign operation

For the purpose of preparing parent company only financial statements, the functional currencies of the Company and the foreign entities (including subsidiaries, associates, joint ventures and branches in other countries that use currency different from the currency of the Company) are translated into the presentation currency - the New Taiwan dollar as follows: assets and liabilities are translated at the exchange rates prevailing at the end of the reporting period; profits and losses items are translated at the average exchange rates for the period. The resulting currency translation differences are recognized in other comprehensive income.

On the disposal of a foreign operation involving the loss of control, joint venture or significant influence over the foreign operation, all of the exchange differences accumulated in equity in respect of that operation are reclassified to profit or loss.

In relation to a partial disposal of a subsidiary that does not result in the Company losing control over the subsidiary, the proportionate share of accumulated exchange differences is re-attributed to the non-controlling interests of the subsidiary and is not recognized in profit or loss. For all other partial disposals, the proportionate share of the accumulated exchange differences recognized in other comprehensive income is reclassified to profit or loss.

• (4.) Classification of Current and Noncurrent Assets and Liabilities

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

  • (A.) Assets expected to be realized or intended to be sold or used within normal operating cycle;

  • (B.) Assets held primarily for the purpose of trading;

  • (C.) Assets expected to be realized within 12 months after the reporting period; and

  • (D.) 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 reporting period.

Assets that are not classified as current are classified as non-current.

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

• (A.) Liabilities expected to be paid off within normal operating cycle;

• (B.) Liabilities held primarily for the purpose of trading;

• (C.) Liabilities due to be settled within 12 months after the reporting period (It is still a current liability even if a long-term refinancing or rearrangement of payment agreement is completed after the balance sheet date and before the financial report is approved,); and

• (D.) Liabilities for which the Company does not have an unconditional right to defer settlement for at least 12 months after the reporting period. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

Liabilities that are not classified as current are classified as non-current.

• (5.) Cash and Cash Equivalent

Cash and cash equivalent includes cash on hand, bank deposit and short-term, highly liquid investment that are readily convertible to know amount of cash and which are subject to an insignificant risk of change in value. Time deposits with original maturities within three months from the closing date that meet the definition above and are held for purpose of meeting short-term cash commitments in operations are classified as cash equivalent.

• (6.) Financial Instruments

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

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at FVTPL) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are recognized immediately in profit or loss.

• A. Financial assets

• (A.) Measurement category

The Company adopts trade-date accounting to recognize financial assets.

Financial assets are classified as financial assets at FVTPL, financial assets at amortized cost, and equity investments at FVTOCI.

• a. Financial assets at FVTPL

Financial asset is classified as at FVTPL when the financial asset is mandatorily classified or designated as at FVTPL. Financial assets mandatorily classified as at FVTPL including equity investments not designated as at FVTOCI and debt instruments that do not meet the criteria of amortized cost or the FVTOCI.

Financial assets at FVTPL are initially and subsequently measured at fair value, with any gains or losses arising from remeasurement recognized in other gains or losses income. Fair value is determined in the manner described in Note 12(3).

• b. Equity investment at FVTOCI

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On initial recognition, the Company may make an irrevocable election to designate investments in equity instruments as at FVTOCI. Designation at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognized by an acquirer in a business combination.

Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in other equity. The cumulative gain or loss will not be reclassified to profit or loss on disposal of the equity investments, instead, they will be transferred to retained earnings.

Dividends on these investments in equity instruments are recognized in profit or loss when the Company’s right to receive the dividends is established, unless the dividends clearly represent a recovery of part of the cost of the investment.

• c. Financial assets at amortized cost

Financial assets that meet the following conditions are subsequently measured at amortized cost:

• (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.

Subsequent to initial recognition, financial assets measured at amortized cost are measured at carrying amount determined by the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

Interest revenue is calculated by using the effective interest method. This is calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for:

• (a.) Purchased or originated credit-impaired financial assets, for those financial assets, the Company applies the credit-adjusted effective interest rate to the amortized cost of the financial asset from initial recognition.

• (b.) Financial assets that are not purchased or originated credit-impaired financial assets but subsequently have become credit-impaired financial assets, for those financial assets, the Company applies the effective interest rate to the amortized cost of the financial asset in subsequent reporting periods.

• (B.) Impairment of financial assets

The Company recognizes a loss allowance for expected credit losses (“ECL”) on financial assets at amortized cost (including accounts receivable).

The loss allowance for accounts receivable is measured at an amount equal to lifetime ECL. For other financial assets, when the credit risk on the financial instrument has not increased significantly since initial recognition, a loss allowance is recognized at an amount equal to 12-month ECL. If there has been a significant increase in credit risk since initial recognition, a loss allowance is recognized at an amount equal to lifetime ECL.

ECL reflects the weighted average of credit losses with the respective risks of a default occurring as the weights. Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECL represents the portion of lifetime ECL that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.

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The Company recognizes an impairment loss for aforementioned financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account.

• (C.) Derecognition of financial assets

The Company derecognizes a financial asset when one of the following conditions is met:

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

• b. The contractual rights to receive cash flows of the financial asset have been transferred and the Company has transferred substantially all risks and rewards of ownership of the financial asset.

• c. The Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

The difference between the book value and the price of financial assets at amortized cost will be recognized to profit or loss on disposal of the financial assets. The cumulative gain or loss of the investments in equity instruments at FVTOCI will not be reclassified to profit or loss on disposal of the equity investments. Instead, they will be transferred to retained earnings.

• B. Financial liabilities

• (A.) Subsequent measurement

Except for the following, financial liabilities measured at amortized cost are measured using the effective interest rate method after initial recognition.

• a. Financial liabilities at FVTPL are financial liabilities held for trading or financial liabilities designated upon initial recognition as at FVTPL. Repurchase currently and the derivative financial instruments unless financial guarantee contract and designated and effective as a hedging instrument, are classified financial liabilities held for trading. The Company designates the financial liabilities upon initial recognition as at FVTPL when the financial liabilities accord to one of the followings:

• (a.) They are hybrid (combined) contracts containing at least an embedded derivative and the host contract is an asset not within the scope of IFRS 9; or

• (b.) Eliminates or significantly reduces measurement or recognition; or

• (c.) A tool to manage and evaluate its performance on a fair value basis in accordance with a written risk management policy.

• b. Financial liabilities at FVTPL are stated at fair value upon initial recognition, related transaction costs and any gain or loss arising on remeasurement are recognized in profit or loss.

• c. A financial liabilities that designated as financial liabilities measured at FVTPL, which amount of change in fair value resulting from a change in credit risk, is recognized as other comprehensive income, and that will not be reclassified subsequently to profit or loss. The amount of the remaining fair value change in the liability is reported in the profit and loss. However, if the aforementioned accounting treatment triggers or exacerbates the improper accounting ratio, the full profits or losses of the liability are reported in the profit or loss.

• (B.) Derecognition of financial liabilities

A financial liability is derecognized when the obligation under the liability is discharged, cancelled or expires. When derecognition of financial liabilities, the difference in the respective carrying amounts and the consideration paid, including any non-cash assets transferred or liabilities assumed, are recognized in profit or loss.

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C. Modification of Financial Instruments

When the contractual cash flows of a financial instrument are renegotiated or modified and the renegotiation or modification does not result in the derecognition of that financial instrument, the Company recalculates the gross carrying amount of the financial asset or the amortized cost of the financial liabilities using the original effective interest rate and recognizes a modification gain or loss in profit or loss. Any costs or fees incurred adjust the carrying amount of the modified financial instrument and are amortized over the remaining term of the modified financial instrument. If the renegotiation or modification results in the derecognition of that financial instrument is required, then the financial instrument is derecognized accordingly.

If the basis for determining the contractual cash flows of a financial asset or financial liability changes resulting from interest rate benchmark reform and the change is necessary as a direct consequence of interest rate benchmark reform and the new basis for determining the contractual cash flows is economically equivalent to the previous basis, the Company applies the practical expedient to account for that change as a change in effective interest rate. If changes are made to a financial asset or financial liability in addition to changes to the basis for determining the contractual cash flows required by interest rate benchmark reform, the Company first applies the practical expedient aforementioned to the changes required by interest rate benchmark reform, and then applies the applicable requirements to any additional changes to which that practical expedient does not apply.

(7.) Inventories

Inventories, under a perpetual system, are measured at the lower of cost and net realizable value. Cost is determined using the weighted average method. The cost of finished goods and work in progress comprises raw materials, direct labor, other direct costs, and related production overheads (allocated based on normal operating capacity), excluding borrowing costs. The item-by-item approach is used in applying the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and applicable variable selling expenses.

• (8.) Investments Accounted for Using Equity Method

Investments in subsidiaries are accounted for using the equity method. A subsidiary is an entity that is controlled by the Company.

Under the equity method, an investment in subsidiary is initially recognized at cost and adjusted thereafter to recognize the Company’s share of profit or loss and other comprehensive income of the subsidiary as well as the distribution received. The Company also recognized its share in change in the equity of subsidiaries.

Changes in the Company’s ownership interests in subsidiaries that do not result in the Company losing control over the subsidiaries are accounted for as equity transactions. Any difference between the carrying amount of the subsidiary and the fair value of the consideration paid or received is recognized directly in equity.

When the Company’s share of losses of a subsidiary equal or exceed its interest in that subsidiary (which includes any carrying amount of the investment in subsidiary accounted for by the equity method and long-term interests that, in substance, form part of the Company’s net investment in the subsidiary), the Company continues recognizing its share of further losses.

When the Company loses control of a subsidiary, and retained investment of the former subsidiary is measured at fair value at that date. A gain of loss is recognized in profit or loss and calculated as the difference between 1) the aggregate of the fair value of consideration received and the fair value of any retained interest at the date when control is lost; and 2) the previous carrying amount of the investments in such subsidiary. In addition, the Company shall account for all amount previously recognized in other comprehensive income in relation to the

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subsidiary on the same basis as would be required if the subsidiary had directly disposed of the related assets and liabilities.

When the Company transacts with its subsidiaries, profits and losses resulting from the transactions with the subsidiaries are recognized in the Company’s parent company only financial statements only to the extent of interest in the subsidiaries that are not owned by the Company.

• (9.) Property, Plant and Equipment

• A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalized. For property, plant and equipment under construction, sample produced from testing whether the asset is functioning properly before its intended use are measured at lower of the costs or net realizable value. Proceeds from selling such an item and the cost of the item are recognized in profit or loss.

• B. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be reliably measured. The carrying amount of the replaced component is derecognized. All other repairs and maintenance expense are recognized in profit or loss as incurred.

• C. Except for land, which is not depreciated, other items of property, plant and equipment are measured at cost, the depreciable amount shall be allocated by the straight-line method over its useful life. Depreciation methods, useful lives, and residual values are reviewed at the end of each reporting period. If expectations for the assets’ residual values and useful lives differ from previous estimates or the patterns of consumption of the assets’ future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in accounting estimate under IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’, from the date of the change.

The estimated useful lives of property, plant and equipment are as follows:

Buildings: 5~55 Years

Machinery: 1~10 Years

Transportation: 5~8 Years

Office Equipment: 1~15 Years

Other Equipment: 1~10 Years

• D. If an item of property, plant and equipment or any significant component is disposed or there is no future economic benefit flow to the Company, the carrying amount is derecognized in profit and loss. The gain or loss arising from the derecognition of an item of property, plant and equipment shall be determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item, and it shall be recognized in profit and loss.

• (10.) Investment properties

Investment properties are properties held to earn rentals and/or for capital appreciation (including property under construction for such purposes) and include land held for a currently undetermined future use.

Owned investment properties are initially measured at cost, including transaction costs, and subsequently measured at cost less accumulated depreciation and accumulated impairment loss. All investment properties are depreciated using the straight-line method.

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On derecognition of an investment property, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss.

• (11.) Intangible Assets

• A. Intangible assets acquired separately (with finite useful lives)

Intangible assets acquired from government grants are measured at fair value. 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 loss. Amortization is recognized on a straight-line basis as follow.

• (A.)Computer Software:1~10 Years

• (B.)Technology:10 Years

• (C.)License: The duration of patent right and the duration of the contract whichever is shorter

The estimated useful life, residual value, and amortization period and method are reviewed at the end of each reporting period, with the effect of any changes in estimates accounted for on a prospective basis.

• B. Internally-generated intangible assets - research and development expenditure

• (A.) Expenditure on research activities is recognized as an expense in the period in which it is incurred except for the goodwill or intangible assets from business combination.

• (B.) An internally-generated intangible asset arising from the development phase of an internal project is recognized if, and only if, all of the following conditions have been demonstrated:

  • a. The technical feasibility of completing the intangible asset so that it will be available for use or sale;

  • b. The intention to complete the intangible asset and use or sell it;

  • c. The ability to use or sell the intangible asset;

  • d. When the intangible asset could generate probable future economic benefits;

  • e. The availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and

  • f. The ability to measure reliably the expenditure attributable to the intangible asset during its development.

• (C.) Capitalized intangible assets in development phase are stated at cost, less accumulated amortization and accumulated impairment loss. Intangible assets with indefinite useful lives that are not amortizable.

• (D.) The assessment of intangible assets with indefinite life is reviewed annually to determine whether the useful lives of intangible asset with indefinite life continues to be with indefinite life. If not, the change in useful life from infinite to finite is recorded as change in accounting estimate.

• C. Disposal of the assets

Any gain or loss arising from the disposal of the assets is determined as the difference between the disposal proceeds and the carrying amount of the asset and is recognized in profit or loss.

• (12.) Impairment of Non-Financial Assets

The Company assesses the recoverable amounts of those assets at the end of reporting period when there is an indication that they are impaired. An impairment loss is recognized when the recoverable amount is the higher of fair value less costs to sell and its value in use. If circumstances indicate that impairment no longer exists, a

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reversal of impairment loss is recognized limited to previously recognized impairment loss. When the carrying amount is the higher than an asset’s recoverable amounts.

Goodwill, intangible assets with indefinite useful lives and intangible assets not yet available for use are assessed for impairment periodically. When the carrying amount of an asset exceeds its recoverable amount, the impairment loss recognized for goodwill is not reversed in subsequent periods.

• (13.) Provisions

Provisions are recognized when the Company has a present legal or constructive obligation from past events, and it is probable that an outflow of economic resources will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation on the balance sheet date. The discount rate shall be a pre-tax rate that reflect current market assessment of the time value and the risk specific to the liability. Where discounting is used, the carrying amount of a provision increases in each period to reflect the passage of time. This increase is recognized as interest expense. Future operating loss is not recognized as provisions.

• (14.) Employee Benefits

• A. Short-term employee benefits

Expenses recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid when service rendered by employee.

B. Pensions

• (A.)Defined contribution plans

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

• (B.) Defined benefit plans

  • a. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Company in the current or prior period(s). The liability recognized in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The defined benefit net obligation is estimated annually by independent actuaries using the projected unit credit method.

  • b. Remeasurements of defined benefit plans are recognized in other comprehensive income as incurred and are recorded as retained earnings.

  • c. Past-service costs are recognized immediately in profit or loss.

• C. Employee’s compensation and directors’ remuneration

Employees’ compensation and directors’ and supervisors’ remuneration are recognized as expenses and liabilities, provided that such recognition is required under legal or constructive obligations and those amounts can be reliably estimated. Any difference between the amount accrued and the amount actually distributed is accounted for a change in accounting estimate.

• D. Termination benefits

A liability for a termination benefit is recognized at the earlier of when the Company can no longer withdraw the offer of the termination benefit and when the Company recognize any related restructuring costs. The benefits expected to be due more than 12 months after balance sheet date should be discounted to the present value.

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(15.) Taxation

• A. Income tax expenses include both current taxes and deferred taxes. Except for expenses related to the items recognized in other comprehensive income or directly in equity, all current and deferred taxes shall be recognized in profit or loss.

• B. The current income tax is calculated based on the tax laws enacted or substantively enacted at the end of each reporting period in the countries where the Company and its subsidiaries operate and generate taxable income.Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. According to Income Tax Act in the R.O.C., income tax on unappropriated earnings is expensed in the year the shareholders’ meeting approved the appropriation of earnings which is the year subsequent to the year the earnings are generated.

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

• D. Deferred tax assets arising from deductible temporary differences, unused loss carry forward and unused tax credits are recognized only 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 tax assets is reviewed at the end of each reporting period.

• E. Current income tax assets and liabilities are offset, and the net amount is reported at the end of the reporting period when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realized the asset and settle the liability simultaneously. Deferred income tax assets and liabilities are offset at the end of the reporting period when the entity has the legally enforceable right to offset current tax assets against current tax liabilities and they are levied by the same tax authority on either the same entity or different entities that intend to settle on a net basis or realized the asset and settle the liability simultaneously.

• F. Tax credit resulting from acquisitions of equipment or technology, research and development expenditures, employee training, and equity investments to the extent that it is possible that future taxable profit will be available against which the unused tax credits can be utilized.

(16.) Revenue

The Company identifies the contract with the customers, and recognizes revenue when performance obligations are satisfied.

• A. Revenue from sale of goods

Revenue from the sale of goods is mainly from sale of medical product. When a customer obtains control of promised goods, at which time the goods are delivered to the customer's specific location and performance

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obligation is satisfied.

B. Royalties

Royalties are the rights of using intellectual property in authorized duration. The received royalties are recognized in royalty revenue on a time basis over the period of the authorization.

C. Technical service

The Company provides research and development technology test services. Revenue from services is recognized as revenue during the period when services are provided to customers. If the services rendered exceed the payment, a contract asset is recognized. If the payments exceed the services rendered, a contract liability is recognized.

The Company’s estimates of revenue, costs and completion degree are revised with the test situation. Any income and cost increase or decrease caused by the estimated changes will be reflected in profit or loss during the period when the revision situation is known to the management.

(17.) Borrowing costs

The borrowing cost directly attributable to the acquisition, construction or production of a qualified assets, is capitalized as part of the cost of the assets until substantially all necessary activities to reach the intended use or status for sale of the assets have been completed.

To the extent that an entity borrows funds specifically for the purpose of obtaining a qualifying asset, the entity shall determine the amount of borrowing costs eligible for capitalization as the actual borrowing costs incurred on that borrowing during the period less any investment income on the temporary investment of those borrowings.

Except for the aforementioned, all other borrowing costs are recognized as profit or loss in the period in which they are incurred.

(18.) Government grants

Government grants are recognized at their fair value only when there is reasonable assurance that the Company will comply with any conditions attached to the grants and the grants will be received.

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

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

(19.) Earnings per Share

The Company discloses the basic and diluted earnings per share attributable to ordinary equity holders of the Company. The calculation of basic earnings per share is based on the profit or loss attributable to the ordinary shareholders of the Company divided by the weighted-average number of ordinary shares outstanding. The calculation of diluted earnings per share is based on the profit or loss attributable to ordinary shareholders of the Company divided by the weighted-average number of ordinary shares outstanding after adjustment for the effect of all dilutive potential ordinary shares.

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The Company considers the economic implications of the changes in climates and related governmental policies and

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regulations, the conflicts between Ukraine and Russia as well as related international sanctions, inflation and volatility in interest rate when making its critical accounting estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised if the revisions affect only that period or in the period of the revisions and future periods if the revisions affect both current and future periods.

In the preparation of the parent company only financial statements, the critical accounting judgments the Company has made and the major sources of estimation and assumption uncertainty are described as follows:

• A. Critical judgements in applying accounting policies

Business model assessment for financial assets

The Company determines the business model at a level that reflects how companys of financial assets are managed together to achieve a particular business objective. This assessment involves judgment and consideration of all relevant evidence, such as how the performance of the assets is evaluated, the risks that affect the performance of the assets, and how the managers of the assets are compensated. The Company constantly assesses the adequacy of its business model and monitors financial assets measured at amortized cost and debt investments measured at fair value through other comprehensive income. When these assets are derecognized prior to their maturity, the Company reviews the reasons for their disposal and whether the reasons are consistent with the objective of the business for which the assets were held. If the objective of the business for an asset is changed, the classification of the asset is prospectively changed from the reclassification date.

• B. Critical accounting estimates and assumptions

• (A.)Revenue Recognition

Sales revenue, excluding related estimated sales returns, discounts and other similar allowance, is recognized when the control of goods or services is transferred to the customer and the Company satisfies it performance obligation. The Company estimates sales returns and allowance based on historical experience and other known factors. The Company assesses the reasonableness of the estimates periodically.

(B.)Estimated impairment of financial assets

The provision for impairment of accounts receivables, debt investments, and financial guarantee contracts is based on assumptions on default risk and expected loss rates. The Company makes these assumptions and selects inputs for impairment calculation based on the Company’s historical experience and existing market conditions, as well as forward looking information. If the future cash inflows are less than expected, a material impairment loss may arise. Please refer to Note 6(4.)for the assumption and input data.

(C.)Evaluation of inventories

As inventories are stated at the lower of cost and net realizable value, the Company must determine the net realizable value of inventories on balance sheet date using judgments and estimates. The Company evaluates the amounts of normal inventory consumption, obsolete inventories or inventories without market selling value on balance sheet date, and writes down the cost of inventories to the net realizable value. The management considers current market and historical experience on sperific future product demand for evaluation basis, and charge of these factors may significantly affect the results.

(D.)The useful life of property, plant and equipment

Property, plant and equipment are amortized on a straight-line basis, and the Company periodically evaluates the useful life and residual value of property, plant and equipment. If there is a significant change in the relevant estimates, it will be adjusted in the current period of the change and in subsequent years.

• 24 -

(E.)Realizability of deferred tax assets

Deferred tax assets are recognized only to the extent that it is probable that future taxable profits will be available against which the deferred tax asset can be utilized. If future generated profit less than expected, there would be significant reversed of deferred tax assets recognized as profit and loss when occured.

6. DETAILS OF SIGNIFICANT ACCOUNTS

• (1.) Cash and Cash Equivalents

ITEM Cash on hand Check deposits Demand deposits Cash equivalent Time deposits (with original maturities within three months) Total	31-Dec-24 $ 1,350 9 552,604 147,533 $ 701,496	31-Dec-23
		$ 1,962 1,832 548,724 148,480
		$ 700,998

• A.The Company trades with a variety of financial institutions all with high credit quality to disperse credit risk, and the management expects that the probability of counterparty default is remote.

• B.The cash and cash equivalents were not pledged.

• (2.) Financial assets at amortized cost (31-Dec-23 : None)

ITEM Current : Time deposits (with original maturities greater than three months) Interest rate range	31-Dec-24 $ 3,926 0.65%~1.40%

• A. As of December 31, 2024 and 2023, the financial assets at amortized cost were not pledged.

• B. Please refer to Note 12 for information about the related credit risk management and the valuation techniques.

• (3.) Notes Receivable, Net

ITEM Notes receivable Less: Allowance for impairment loss	31-Dec-24 $ 147,132 (507) $ 146,625	31-Dec-23 $ 164,407 (507) $ 163,900

• A. As of December 31, 2024 and 2023, the notes receivables were not pledged.

• B. Please refer to table below for the information about the disclosures on allowance for impairment loss for accounts receivable.

• 25 -

(4.) Accounts Receivable, Net

Accounts Receivable, Net
ITEM		31-Dec-24		31-Dec-23
Accounts receivable
Gross carrying amount measured at amortized cost	$	474,851	$	433,261
Less: Allowance for impairment loss		(7,259)		(7,259)
	$	467,592	$	426,002

• A. The Company’s average credit terms of accounts receivable were 30 to 120 days, which was determined with factors of customers’ industrial environment, business scales and profitability.

• B. The accounts receivable were not pledged.

• C. The Company applies the simplified approach to provisions for expected credit losses, which permits the use of a lifetime expected credit losses provision for all notes receivable and accounts receivable. The lifetime expected credit losses on accounts receivables are estimated by reference to past default experience with the respective debtors and an analysis of the debtors’ current financial positions. According to the past experience of credit loss, there is no significant difference between different customer categories, thus the provision matrix doesn’t further distinguish customer categories, and is set up the expected credit loss ratio by the past due days.

The following table details the loss allowance of note receivables and accounts receivables based on the Company’s provision matrix.

December 31,2024 Not past due 1 to 60 days 61 to 120 days 121 to 180 days Over 181 days Total December 31,2023 Not past due 1 to 60 days 61 to 120 days 121 to 180 days Over 181 days Total	Expected Credit Loss Ratio 0%~1% 5% 30% 50% 100% Expected Credit Loss Ratio 0%~1% 5% 30% 50% 100%	Gross Carrying Amount $ 589,566 26,449 324 42 5,602 $ 621,983 Gross Carrying Amount $ 564,031 26,827 521 223 6,066 $ 597,668	Loss Allowance (Lifetime ECL) $ 724 1,322 97 21 5,602 $ 7,766 Loss Allowance (Lifetime ECL) $ 91 1,341 156 112 6,066 $ 7,766	Amortized Cost
				$ 588,842 25,127 227 21 -
				$ 614,217
				Amortized Cost
				$ 563,940 25,486 365 111 -
				$ 589,902

• D. The movements of the loss allowances of notes receivable and accounts receivable, including those from related parties, were as follows:

Opening Balance Add: Impairment loss Closing Balance	For the Year Ended December31 2024 2023 $ 7,766 $ 6,067 - 1,699 $ 7,766$ 7,766

• 26 -

• E. These amounts were recognized without considering other credit enhancements held by the Company. The Company writes off an accounts receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery. However, the Company continues to engage in enforcement activity to recover the receivables due. Any recovered amounts are recognized in profit or loss.

• F. Please refer to Note 12 for information about the related credit risk management and the valuation techniques.

• (5.) Inventories

Inventories
ITEM		31-Dec-24		31-Dec-23
Merchandise	$	1,102	$	2,727
Finished goods		241,711		279,322
Work in process		54,263		71,551
Raw materials		268,268		308,813
Materials		41,007		39,902
Materials and supplies in transit		-		3,459
Total	$	606,351	$	705,774

• A. Cost of revenue related to inventories recognized in profit or loss as follows:

ITEM Cost of goods sold Loss on decline (gain on reversal) in market value of inventories Loss on inventory scrapped Others Total	For the Year Ended December31	For the Year Ended December31
	2024 $ 1,716,148 (7,072) 19,188 (1,700) $ 1,726,564	2023
		$ 1,701,227 (28,015) 11,268 (286)
		$ 1,684,194

• B. No inventories were pledged or held as collateral.

• (6.) Financial Assets at Fair Value through profit and loss / other comprehensive income – non-current

ITEM Financial assets mandatorily measured at fair value through profit or loss Overseas unlisted preferred shares PHYTOCEUTICA INC. CANCAP PHARMACEUTICAL, LTD. Less: Accumulated impairments Total Financial assets mandatorily measured at fair value throughother comprehensive income Domestic listed ordinary (OTC) shares Domestic unlisted ordinary shares Less: Valuation adjustments Total	31-Dec-24 $ 4,844 44,981 49,825 (4,844) $ 44,981 $ 36,068 17,266 (2,602) $ 50,732	31-Dec-23
		$ 4,844 2,394
		7,238 (4,844)
		$ 2,394
		$ - 12,126 (1,990)
		$ 10,136

• A. The Company invested in the preferred stocks of PHYTOCEUTICA INC., it is not entitled to other rights of

• 27 -

ordinary shares, except for that dividends and distribution of residual assets preferred over ordinary shares.

• B. These investments in equity instruments were held for long-term strategic purposes. Accordingly, the management elected to designate these investments in equity instruments as at FVTOCI.

• C. As of December 31, 2024 and 2023, the financial assets at fair value through profit or loss were not pledged or held as collateral.

• D. Please refer to Note 12 for information about the related credit risk management and the valuation techniques.

• (7.) Investments Accounted for Using Equity Method

Name of Investee CANCAP PHARMACEUTICAL LTD. (ordinary shares) SUNETIC BIOTECH INC. UJNIVERSAL NEXT TECHNOLOGIES INC. ZuniMed Biotech Co., Ltd. SynCore Biotechnology Co., Ltd. Total Add: Transfer into debit item of financial asset at FV through PL FVTPL	31-Dec-24	31-Dec-24	Carrying Amount $ (81,266) 850,671 52 93,527 189,270 1,052,254 81,266 $ 1,133,520	31-Dec-23	31-Dec-23	Carrying Amount $ (123,853) 815,584 27 91,199 229,301 1,012,258 123,853 $ 1,136,111
	Original Investment Amount $ 92,255 745,748 17,467 109,990 1,864,935 $ 2,830,395	Percentage Of Ownership 100% 83.47% 100.00% 100.00% 64.26%		Original Investment Amount	Percentage Of Ownership 88.43% 83.47% 100.00% 100.00% 64.26%
				$ 44,605 745,748 17,467 109,990 1,864,935
				$ 2,782,745

• A. As of December 31, 2024 and 2023, the investment accounted for using equity method for CANCAP PHARMACEUTICAL LTD. has been consistently dealing with operating deficit. This caused the Company to carry a credit balance on the carrying amount of its related long-term investment. The Company also owns the preference shares of the investee, hence the credit balance amounted to NT$81,266 thousand and NT$123,853 thousand were respectively debited as Financial Assets at Fair Value through Profit and Loss.

• B. The Subsidiary, CANCAP PHARMACEUTICAL LTD. ’s Board of Directors resolved in August 2024 to redeem and cancel all 2,420 thousand common shares to offset accumulated losses. Simultaneously, the Company raised capital through the issuance of 2,000 thousand ordinary shares. The total amount issued through the cash capital increase was CAD 2,000 thousand at a subscription price of CAD 1 per share, with all shares fully subscribed by the Company.

• C. The Company received cash dividends from subsidiary SUNETIC BIOTECH. INC. amounted to NT$71,824 thousand for the years ended December 31, 2023, respectively.

• D. The Subsidiary, SynCore Biotechnology Co., Ltd.’s shareholders held a meeting on May 5, 2023, and resolved to cover deficit by reducing capital by NT$843,325 thousand, writing off 84,332 thousand shares (including privately placed equuity 33,131 thousand shares). The ratio of capital reduced was 73.28%.

• E. The Subsidiary, SynCore Biotechnology Co., Ltd.’s Board of Directors resolved on August 8, 2023 to raise capital through the issuance of 4,420 thousand ordinary shares. Amount to be issued through the cash capital

• 28 -

increase is $NTD150,280 thousand at a subscription price of $NTD34 per share. The Company subscribed for

NT$119,237 thousand for 3,507 thousand shares. Due to non-proportionate subscription to SynCore’s issuance of new capital share, the Company recognized adjustment to reduce capital surplus and retained earning for NT$ 5,832 thousand and 13,969 thousand, respectively.

• F. The stocks of SynCore Biotechnology Co, Ltd are listed for publicly traded. As of December 31, 2024 and 2023, the Company held its shares with market values amounted to NT$787,522 thousand and NT$784,439 thousand.

• G. Please refer to Note 13 for the information of investments accounted for using equity method.

• (8.) Property, Plant and Equipment

Cost 1-Jan-24 Additions Disposals Reclassification 31-Dec-24 Accumulated depreciation and Impairment 1-Jan-24 Depreciation Disposals Reclassification 31-Dec-24 Cost 1-Jan-23 Additions Disposals Reclassification 31-Dec-23 Accumulated depreciation and Impairment 1-Jan-23 Depreciation Disposals Reclassification 31-Dec-23 CarryingAmount 31-Dec-24 31-Dec-23	Land $ 583,960 - - - $ 583,960 $ - - - - $ - $ 487,277 - - 96,683 $ 583,960 $ - - - - $ - $ 583,960 $ 583,960	Buildings $ 2,029,741 23,539 - 159,361 $ 2,212,641 $ 893,312 62,949 - - $ 956,261 $ 1,939,115 11,422 - 79,204 $ 2,029,741 $ 823,349 60,875 - 9,088 $ 893,312 $ 1,256,380 $ 1,136,429	Machinery $ 1,350,956 36,087 - 57,982 $ 1,445,025 $ 986,738 79,533 - - $ 1,066,271 $ 1,215,351 30,011 (14,289) 119,883 $ 1,350,956 $ 931,520 68,810 (13,592) - $ 986,738 $ 378,754 $ 364,218	Other Equipment $ 235,370 14,555 - 6,454 $ 256,379 $ 170,123 16,580 - - $ 186,703 $ 226,606 15,664 (10,056) 3,156 $ 235,370 $ 165,824 14,355 (10,056) - $ 170,123 $ 69,676 $ 65,247	Unfinished Construction and Equipments Pending Acceptance $ 129,705 84,550 - (182,663) $ 31,592 $ - - - - $ - $ 72,622 115,721 - (58,638) $ 129,705 $ - - - - $ - $ 31,592 $ 129,705	Total
						$ 4,329,732 158,731 - 41,134
						$ 4,529,597
						$ 2,050,173 159,062 - -
						$ 2,209,235
						$ 3,940,971 172,818 (24,345) 240,288
						$ 4,329,732
						$ 1,920,693 144,040 (23,648) 9,088
						$ 2,050,173
						$ 2,320,362
						$ 2,279,559

• 29 -

A. The property, plant and equipment were pledged or held as collateral, please refer to Note 8 for details.

• B. As of December 31, 2024 and 2023, the Company acquired agricultural lands from non-related parties for the purpose of plant planning which could not be registered ownership of the Company. The acquisition cost was NT$23,184 thousand, and the land was registered in the name of Shu Fei Yu. To protect the interest of the Company, the mortgage right of the land was registed belong to the Company.

(9.) Investment Properties

			Land		Buildings		Total
Cost
1-Jan-24		$	86,197	$	33,881	$	120,078
Additions			-		-		-
Reclassification			-		-		-
31-Dec-24		$	86,197	$	33,881	$	120,078
Accumulated	depreciation
and impairments
1-Jan-24		$	-	$	8,690	$	8,690
Depreciation			-		784		784
Reclassification			-		-		-
31-Dec-24		$	-	$	9,474	$	9,474
Cost
1-Jan-23		$	182,880	$	71,884	$	254,764
Additions			-		-		-
Reclassification			(96,683)		(38,003)		(134,686)
31-Dec-23		$	86,197	$	33,881	$	120,078
Accumulated	depreciation
and impairments
1-Jan-23		$	-	$	16,803	$	16,803
Depreciation			-		975		975
Reclassification			-		(9,088)		(9,088)
31-Dec-23		$	-	$	8,690	$	8,690
CarryingAmount
31-Dec-24		$	86,197	$	24,407	$	110,604
31-Dec-23		$	86,197	$	25,191	$	111,388

• A. Rental income from investment properties and direct operating expenses arising from investment property are shown below:

shown below:
Rental income from investment properties Direct operating expenses arising from the investment properties that generated rental income during the period	FortheYear EndedDecember31
	2024 $ 3,848 $ 1,100	2023 $ 4,737 $ 1,288

B. Investment properties are depreciated on a straight-line basis based on 15~50 years useful lives.

• 30 -

• C. The investment properties that are not valued by an external independent valuer are valued by the Company’s management using the rental of adjacent area as reference. This was the cash flow approach and belonged to the level 3 fair value measurement. The fair values as at December 31, 2024 and 2023 were amounted to NT$127,273 thousands and NT$135,375 thousands, respectively.

• D. For details on related party transactions involving the leasing of investment properties, please refer to Note 7(3).

• E. Information on investment properties pledged to others as collaterals is provided in Note 8.

(10.) Intangible Assets

Intangible Assets
ITEM Software Less: Accumulated amortization and impairment Net 1-Jan-24 Additions Disposals Reclassification 31-Dec-24	Dec-31-24 Dec-31-23 $ 100,908 $ 86,609 (72,626) (65,898) $ 28,282$ 20,711 Software		Dec-31-23
	$		$	86,609 (65,898)
	$		$	20,711
	Cost $ 86,609 16,145 (6,992) 5,146 $ 100,908	Accumulated amortization and impairment $ (65,898) (13,720) 6,992 - $ (72,626)		Carrying Amount
				$ 20,711 2,425 - 5,146
				$ 28,282

1-Jan-23 Additions Disposals Reclassification 31-Dec-23		Software
	Cost $ 90,855 5,064 (9,533) 223 $ 86,609	Accumulated amortization and impairment $ (62,389) (13,042) 9,533 - $ (65,898)	Carrying Amount
			$ 28,466 (7,978) - 223
			$ 20,711

The software was pledged as collateral for long-term loans, please refer to Note 8.

• (11.) Short-term loans

(11.) Short-term loans
Category Unsecured loans Category Unsecured loans (12.) Other payables ITEM Salaries and bonuses payable Advertisement expenses payable Research expenses payable Employeees’ compensation and Directors’ remuneration payable	31-Dec-24
	Amount Interest Rate $ 330,000 1.88%~2.22% 31-Dec-23	Interest Rate
	Amount $ 360,000 31-Dec-24 $ 111,643 36,231 14,896 17,047	Interest Rate
		1.75%~1.95% 31-Dec-23
		$ 110,997 39,364 33,427 16,382

• 31 -

ITEM Labor and health insurance payable Pension payable Other Total (13.) Long-term loans and current portion of ITEM Secured loans Unsecured loans Subtotal Less: current portion Total Interest Rate	31-Dec-24 9,323 6,331 108,331 $ 303,802 long-term liabilities 31-Dec-24 $ 1,184,917 340,000 1,524,917 (348,976) $ 1,175,941 1.850%~2.8013%	31-Dec-23 8,516 5,293 76,635 $ 290,614 31-Dec-23 $ 1,244,963 290,000 1,534,963 (48,490) $ 1,486,473 1.650%~2.415%

Please refer to Note 8 for collaterals pledged for long-term borrowings.

(14.) Retirement Benefit Plans

Defined contribution plans

• A. The employee pension plan under the Labor Pension Act of the R.O.C. (the Act) is a defined contribution plan. Pursuant to the plan, the Company make monthly contributions of 6% of each individual employee’s salary or wage to employees’ pension accounts.

• B. NT$38,292 thousand and NT$22,000 thousand were contributed by the Company for the years ended December 31, 2024 and 2023, respectively.

Defined benefit plan

The Company and its domestic subsidiaries have defined benefit pension plans in accordance with the Labor Standards Law of the R.O.C. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company contributes monthly an amount equal to 2% of the employees’ monthly salaries and wages to the retirement fund deposited in Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. The Company would assess as the balance in the aforementioned labor pension reserve account by the end of each year. If the account balance is not enough to pay the pension to the labors expected to be qualified for retirement in the next year, the Company will make contribution for the deficit by next March. The pension fund is managed by the government’s designated authorities and the Company has no right to influence their investment strategies.

A. Amounts recognized in the parent company only balance sheets are as follows:

ITEM		31-Dec-24	31-Dec-24		31-Dec-23	31-Dec-23
Present value of defined
benefit obligations		$	131,597		$	164,129
Fairvalue ofplan assets			(116,508)			(128,577)
Net defined benefit liability		$	15,089		$	35,552

• 32 -

B. Movements of net defined benefit liabilities were as follows:

B. Movements of net defined benefit	B. Movements of net defined benefit	liabilities were as follows:	liabilities were as follows:	liabilities were as follows:	liabilities were as follows:	liabilities were as follows:	liabilities were as follows:	liabilities were as follows:	liabilities were as follows:
		For the Year Ended December31,2024
		Present value of			Fair value of plan asset
		defined benefit			Fair value of plan			Net defined benefit
ITEM		obligations			asset			liability
		$	164,129		$	(128,577)		$
BALANCE at JANUARY 1			164,129						35,552
Service cost:
		429
Current service cost			429			-			429
Interest expense (revenue)			1,940			(1,535)			405
Settlementprofit(loss)			11,835			-			11,835
		14,204				(1,535)
Recognized inprofit or loss			14,204						12,669
Remeasurement on the net
defined benefit liability:
Return on plan assets		-				(11,792)			(11,792)
Actuarial (gains) losses
Effect of changes in					- -
demographic assumptions			3			-			3
Effect of changes in
financial assumptions			(5,736)			-			(5,736)
Experience adjustments		6,054				-			6,054
Components of defined benefit		321			(11,792)
costs recognized in other
comprehensive income									(11,471)
Pension fund contribution		-				(10,640)			(10,640)
Paid Pension			(10,269)						(389)
						9,880
Paid Settlementt			(36,788)						(10,632)
						26,156
Balance at December 31		$ 131,597			$	(116,508)		$ 15,089

		For the Year Ended December 31,2023
		Present value of			Fair value of plan asset
		defined benefit			Fair value of plan			Net defined benefit
ITEM		obligations			asset			liability
		$	165,248		$	(129,270)		$
BALANCE at JANUARY 1			165,248						35,978
Service cost:
		680
Current service cost			680			-			680
Interest expense(revenue)			2,118			(1,662)			456
		2,798				(1,662)
Recognized inprofit or loss			2,798						1,136
Remeasurement on the net
defined benefit liability:
		-				(1,130)			(1,130)
Return on plan assets			-
Actuarial (gains) losses
Effect of changes in					- -
demographic assumptions			-			-			-
Effect of changes in
financial assumptions			1,397			-			1,397
Experience adjustments			3,469			-			3,469
Components of defined benefit		4,866			(1,130)
costs recognized in other
comprehensive income									3,736
		- 33 -

For the Year Ended December 31, 2023

	For the Year Ended December31,2023	For the Year Ended December31,2023	For the Year Ended December31,2023	For the Year Ended December31,2023	For the Year Ended December31,2023	For the Year Ended December31,2023	For the Year Ended December31,2023	For the Year Ended December31,2023	For the Year Ended December31,2023	For the Year Ended December31,2023
		Present value of			Fair value of plan asset
		defined benefit			Fair value of plan				Net defined benefit
ITEM		obligations			asset				liability
Pension fund contribution		-				(5,298)				(5,298)
Paid Pension			(8,783)		8,783				-
Balance at December 31		$ 164,129			$	(128,577)			$ 35,552
C. The defined benefit plan as of t Operation Costs Selling Expense Administrative Expense Research and Development Expense		he year ended 2024 and 2023 were summarized by functions as follows: 31-Dec-24 31-Dec-23 $ 4,354 $ 516 3,524 354 4,761 224 30 42 $ 12,669 $ 1,136
							$ 516 354 224 42
							$ 1,136

• D. Through the defined benefit plans under the Labor Standards Law, the Company is exposed to the following risks:

(A.)Investment risk

The pension funds are invested in equity and debt securities, bank deposits, etc. at the discretion of the Bureau of Labor Funds of Ministry of Labor, or under the mandated management. However, under the Labor Standards Law, the rate of return on plan assets shall not be less than the average interest rate on a two-year time deposit published by the local banks.

• (B.)Interest risk

A decrease in the government bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the debt investments of the plan assets.

• (C.)Salary risk

The present value of the defined benefit obligation is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the present value of the defined benefit obligation.

E. The main actuarial assumptions used were as follows:

	31-Dec-24		31-Dec-23
Discount rate	1.65%		1.20%
Expected rate of salaryincrease	1.50%		1.50%
The weighted average duration of the
	8 years		8 years
defined benefit obligation

• (A.) Assumptions on future mortality experience are set based on the 6th Taiwan Standard Ordinary Experience Mortality Table (TSO).

• (B.) The sensitivity analysis:

If significant actuarial assumptions change reasonably and all other assumptions are held constant, the present value of the defined benefit obligation may increase(decrease) as below:

ITEM		31-Dec-24	31-Dec-24			31-Dec-23
Discount rate	$ (2,812) $ (3,459) (1,135) (1,397) 2,902 3,571 1,150 1,415
0.25% increase		$	(2,812)		$	(3,459)
0.1% increase			(1,135)			(1,397)
0.25% decrease			2,902			3,571
0.1% decrease			1,150			1,415

• 34 -

31-Dec-24

31-Dec-23

ITEM

ITEM		31-Dec-24	31-Dec-24			31-Dec-23
Future salaryincrease rate
0.25% increase			2,900			3,552
0.25% decrease			(2,823)			(3,457)
Employee turnover rate
110% of the expected
employee turnover rate			(24)			(15)
90% of the expected		25
employee turnover rate			25			15

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated .

• F. The contribution that the Company expects to make to its defined benefit pension plans in next year is NT$558 thousand.

Other Employees’ benefits were as follows:

ITEM Employees benefits payable Compensated absences payable Other employees benefits Total	31-Dec-24 $ 10,910 5,089 30,050 $ 46,049	31-Dec-23
		$ 10,485 5,264 16,314
		$ 32,063

• (15.) Capital Stock

The movements in the number of the Company's ordinary shares outstanding are as follows:

January 1 Capitalization of retained earnings December 31 January 1 December 31	For the Year Ended December 31, 2024	For the Year Ended December 31, 2024
	Issued and paid shares (in thousands) Issued capital 167,722 $ 1,677,221 13,418 134,177 181,140$ 1,811,398 For the Year Ended December 31, 2023	Issued capital
		$ 1,677,221 134,177
		$ 1,811,398
	Issued and paid shares (in thousands) 167,722 167,722	Issued capital
		$ 1,677,221
		$ 1,677,221

At the Annual Shareholders’ Meeting held on June 19, 2024, the Company approved a capital increase of NT$ 134,177 thousand through the capitalization of retained earnings. A total of 13,418 thousand common shares were issued, with a par value of NT$10 per share. The relevant registration and amendments have been duly completed.

As of Dec 31, 2024 the Company’s authorized capital amount was NT$2,500,000 thousand, consisting of 250,000 thousand shares of ordinary stocks.

• (16.) Capital Surplus

ITEM Additional paid in capital Additional paid-in capital arising from bond conversion Difference between consideration and carrying amount of subsidiaries acquired or disposed	31-Dec-24 $ 422,450 190,611 310,439	31-Dec-23 $ 422,450 190,611 310,439

• 35 -

ITEM Others Total	31-Dec-24 640 $ 924,140	31-Dec-23
		640
		$ 924,140

Under the Company Act, the capital surplus generated from excess of the issuance price over the par value of capital stock and donations may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as stock dividends or cash dividends. Further, the R.O.C. Securities and Exchange Law requires that the amount of capital surplus to be capitalized mentioned above should not exceed a certain percentage of the Company’s paid in capital each year. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

• (17.) Retained Earnings and Dividend Policy

• A. When allocating the net profits in each fiscal year, Sinphar shall be first utilized for paying taxes, offsetting losses of previous years, and then setting aside the 1) legal capital reserve at 10% of the profits left over, until the accumulated legal capital reverse equals Sinphar’s paid-in capital; 2) special capital reverse in accordance with relevant laws or regulations or as requested by the authorities in charge; and 3) balance left over shall be allocated according to the resolution of the board of directors and the shareholders’ meeting.

• B. To consider about the economic circumstances, development phase, and future business expansion, dividends will be allocated in consideration of future capital expenditure and cash forecast. However, cash dividends are limited to over 20% of total dividends distributed.

• C. The appropriation for legal capital reserve shall be made until the reserve equals the Company’s paid-in capital. The reserve may be used to offset deficit, or be distributed as dividends in cash or stocks for the portion in excess of 25% of the paid-in capital if the Company incurs no loss.

D. Special Reserve ：

ial Reserve：
ITEMS Amount when first applied to IFRSs Amount aroused from other equity interest Total	31-Dec-24 $ 37,951 99,220 $ 137,171	31-Dec-23
		$ 37,951 83,416
		$ 121,367

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

• (B.) When IFRSs were first adopted, according to the special reserve regulation of Financial Supervisory Commission R.O.C, no. 1010012865 on April 6, 101, If the company subsequently uses, disposes or reclassifies the relevant assets, the proportion originally set aside as the special reserve will be reversed into distributable retained earnings.

• E. The appropriations of earnings for 2023 had been approved by the company’s shareholders in its meeting held on June 19, 2024 and the appropriations and dividends per share were as follows:

	Appropriation of Earnings	Appropriation of Earnings		Dividends Per Share(NT$)	Dividends Per Share(NT$)
Legal capital reserve	$	36,980 $ -
Special capital reserve		15,804			-
Cash dividends of ordinaryshare		167,722			1
Stock dividends of ordinaryshare		134,177			0.8
Total	$
		354,683

• 36 -

F. The appropriations of earnings for 2024 had been approved in the meeting of the Board of Directors on March 5, 2025 and the appropriations and dividends per share were as follows:

		Earnings Distribution	Dividendper Share(NT$)	Dividendper Share(NT$)	Dividendper Share(NT$)
		Proposal			Dividendper Share(NT$)
Legal capital reserve	$			$
		31,618			-
Cash dividends of ordinaryshare		181,140			1
Stock dividends of ordinaryshare		90,570			0.5
Total	$
		303,328

The appropriations of earnings for 2024 are to be presented for approval in the shareholders’ meeting which is to be held on June 19, 2025.

• G.Information on the resolution of the Board of Directors' and shareholders' meetings regarding the appropriation of earnings is available from the Market Observation Post System on the website of the TWSE.

• (18.) Others Equity Items

) Others Equity Items
ITEM Balance as at Jan 1, 2024 Exchange differences on translation of foreign financial statements Income tax effects Unrealized gain on financial assets at FVTOCI Share of other comprehensive income of associates accounted for using the equity method Balance as at Dec 31, 2024 Balance as at Jan 1, 2023 Exchange differences on translation of foreign financial statements Income tax effects Unrealized gain on financial assets at FVTOCI Share of other comprehensive income of associates accounted for using the equity method Balance as at Dec 31, 2023 ) Net Revenue ITEM Revenue from contracts with customers Net revenue from the sale of goods Less:Sales returns and allowances Total	Exchange differences on translation of foreign financial statements Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Comprehensive Income Total $ (92,720) $ (44,451) $ (137,171) 27,834 - 27,834 (5,567) - (5,567) - (611) (611) 2 (5,249) (5,247) $ (70,451) $ (50,311) $ (120,762) $ (80,701) $ (40,667) $ (121,368) (15,045) - (15,045) 3,009 - 3,009 - (1,922) (1,922) 17 (1,862) (1,845) $ (92,720) $ (44,451) $ (137,171) FortheYear EndedDecember31		Total
			$ (137,171) 27,834 (5,567) (611) (5,247)
			$ (120,762)
			$ (121,368) (15,045) 3,009 (1,922) (1,845)
			$ (137,171)
	2024 $ 3,197,650 (337,335) $ 2,860,315	2023
		$ 3,061,081 (343,871)
		$ 2,717,210

• (19.) Net Revenue

A. Breakdowns of contract revenue

• 37 -

• (A.) Please refer to Note 14 for geographical and departmental information details.

• (B.) Revenue was recognized at a specific point of time period when all the obligations were fulfilled.

• B. Contract Balance

The accounts receivable and contract liabilities in relation to contract revenue were as follows:

ITEM Accounts Receivable (6(4.)) Contract liabilities-current	31-Dec-24 $ 467,592 $ 93,389	31-Dec-23 $ 426,002 $ 84,352	1-Jan-23
			$ 456,586
			$ 93,235

• (A.) Changes in contract liabilities mainly result from the time difference between the performance obligation satisfied and the customer’s payment.

• (B.) Revenue from opening contract liabilities - sales of goods recognized as revenue in the current period were as follows:

as follows:
Revenue Amounts from opening contract liabilities - sales of good	For the Year Ended December 31
	2024 $ 75,784	2023
		$ 80,344

• (20.) Other Income

For the Year Ended December 31

ITEM Government grants Rental income Others Total	2024 $ 6,500 11,537 18,916 $ 36,953	2023
		$ 1,371 12,782 22,621
		$ 36,774

• (21.) Other Gains and Losses

Other Gains and Losses
ITEM Net currency exchange gains (losses) Gains (losses) on disposal of assets Others Total	For the Year Ended December31
	2024 $ 12,254 - (1,442) $ 10,812	2023
		$ (3,530) 5,145 (6,507)
		$ (4,892)

(22.) Employee Benefits Expense, Depreciation and Amortization

ITEM Employee benefits expense Salaries and wages Labor and health insurance Pension Remuneration to directors Other employee benefits Depreciation Amortization Total	For the Year Ended December 31, 2024	For the Year Ended December 31, 2024	For the Year Ended December 31, 2024
	Cost of revenue $ 254,632 29,096 16,045 - 19,087 128,432 7,283 $ 454,575	Operating expenses $ 293,457 26,574 34,916 9,041 20,167 30,630 18,706 $ 433,491	Total
			$ 548,089 55,670 50,961 9,041 39,254 159,062 25,989
			$ 888,066

• 38 -

For the Year Ended December 31, 2023

ITEM Employee benefits expense Salaries and wages Labor and health insurance Pension Remuneration to directors Other employee benefits Depreciation Amortization Total	Cost of revenue $ 258,661 29,035 12,172 - 17,137 115,307 5,647 $ 437,959	Operating expenses $ 281,560 23,793 10,964 8,682 20,115 28,733 23,546 $ 397,393	Total
			$ 540,221 52,828 23,136 8,682 37,252 144,040 29,193
			$ 835,352

• A. As of December 31, 2024, and 2023, the number of employees of the Company were 822 and 826, respectively, the directors who have not served as employees were both 9.

• B. The average employee benefits expense are NT$ 854 thousand and NT$ 800 thousand in 2024 and 2023, respectively.

• C. The average salaries and wages are NT$ 674 thousand and NT$ 661 thousand in 2024 and 2023, respectively.

• D. The adjustment rate of average salaries and wages is 2%.

• E. Salary Policy

Directors’ remuneration

• (A) The Company's Articles of Incorporation stipulate that the remuneration for all directors is determined by the board of directors, regardless of operating profit or loss, which would be paid at the usual level of the industry.

• (B) The Company's Articles of Incorporation stipulate the company shall allocate not higher than 5% of annual profits during the period to directors’ and supervisors’ remuneration.

Executive compensation

The remuneration for the management of the Company is based on the nature of the department, personnel positioning, work performance and business development progress, and is reviewed by the remuneration committee and resolved by the board of directors.

Employees’ compensation

• The remuneration of the Company’s employees includes the salary, various allowances, position subsidy additions, overtime wages and various bonuses, as well as the employee remuneration paid by the Company according to the annual profitability. The Company's Articles of Incorporation stipulate the company shall allocate 2%~8% of income before income tax during the period to employees’ compensation.

• F. The employees’ compensation and directors’ and supervisors’ remuneration for 2024 and 2023 were approved in the meetings of the Board of Directors on March 5, 2025 and March 6, 2024, respectively. The amounts recognized in the financial reports were as follows:

Amount resolved to be distributed Amount recognized in financial reports Difference	2024 Employees’ compensation Directors’ and supervisors’ remuneration $ 10,910 $ 6,137 10,910 6,137 $ -$ -	2023	2023
	Employees’ compensation $ 10,910 10,910 $ -	Employees’ compensation $ 10,485 10,485 $ -	Directors’ and supervisors’ remuneration
			$ 5,898 5,898
			$ -

• 39 -

The above-mentioned compensation was distributed in cash.

• G. The information about employees’ compensation and directors’ and supervisors’ remuneration of the company as resolved by the meeting of Board of Directors is available from the Market Observation Post System on the website of the TWSE.

• (23.) Finance Costs

.) Finance Costs
For the Year Ended December 31 ITEM 2024 2023 Interest expense - bank loans $ 35,657$ 32,114 .) Income Tax A. The components of tax expense (benefit): For the Year Ended December31 ITEM 2024 2023 Current tax Current tax expense recognized in the current year $ 18,966 $ (70,596) Adjustments for prior periods - 777 Total $ 18,966 $ (69,819) Deferred tax Deferred income tax related to origination and reversal of temporary differences 223 5,910 Income tax expense (benefit) $ 19,189 $ (63,909) B. Income tax recognized in other comprehensive (income) loss: For the Year Ended December31 ITEM 2024 2023 Currency translation differences $ 5,567$ (3,009) C. Reconciliation between income tax expense (benefit) and accounting loss as follows: For the Year Ended December 31 ITEM 2024 2023 Profit before income tax $ 323,894$ 311,261 Tax calculated based on profit before tax and statutory tax rate $ 64,779 $ 62,252 Effects from items disallowed by tax regulation (26,558) (105,564) Investment tax credit (19,255) (41,649) Income tax from subsidiaries dividends - 14,365 Net change in deferred income tax 223 5,910 Income tax adjustments for prior years - 777 Income tax expense (benefit) $ 19,189$ (63,909)	For the Year Ended December 31
	2024 2023 $ 35,657$ 32,114 For the Year Ended December31	2023
		$ 32,114
		2023
		$ (70,596) 777
		$ (69,819)
		5,910
		$ (63,909)
	2024 $ 323,894 $ 64,779 (26,558) (19,255) - 223 - $ 19,189	2023
		$ 311,261
		$ 62,252 (105,564) (41,649) 14,365 5,910 777
		$ (63,909)

• (24.) Income Tax

Under the Act for the Development of Biotech and Pharmaceutical Industry, the Company could recognize an investment tax credit within a limit of 20% of the investment price if the investee is applicable to the act.

• 40 -

D. Deferred income tax assets and liabilities

Deferred tax assets or liabilities arising from temporary differences, operating loss carryforward, and investment tax credits:

investment tax credits:
Deferred income tax asset Temporary difference Employee benefits Sales returns and allowances Unrealized loss on inventories Exchange difference on foreign operations Others Operating loss carryforwards Investment tax credit Deferred income tax liabilities Temporary difference Land value increment tax Gain on foreign investments accounted for using the equity method Deferred income tax asset Temporary difference Employee benefits Sales returns and allowances Unrealized loss on inventories Exchange difference on foreign operations Others Operating loss carryforwards Investment tax credit Deferred income tax liabilities Temporary difference Land value increment tax Gain on foreign investments accounted for using the equity method		For the Year Ended December 31,2024
	Jan-1 $ 3,263 10,710 11,264 23,182 788 80,000 41,649 $ 170,856 $ 32,939 52,745 $ 85,684	Profit and loss Other comprehensive income $ 2,547 $ - (53) - (1,414) - - (5,567) (179) - (79) - 19,255 - $ 20,077 $ (5,567) $ - $ - 1,124 - $ 1,124 $ - For the Year Ended December 31,2023		Dec-31
				$ 5,810 10,657 9,850 17,615 609 79,921 60,904
				$ 185,366
				$ 32,939 53,869
				$ 86,808
	Jan-1 $ 3,006 11,264 16,867 20,173 798 - - $ 52,108 $ 32,939 1,692 $ 34,631	Profit and loss $ 257 (554) (5,603) - (10) 80,000 41,649 $ 115,739 $ - 51,053 $ 51,053	Other comprehensive income $ - - - 3,009 - - - $ 3,009 $ - - $ -	Dec-31
				$ 3,263 10,710 11,264 23,182 788 80,000 41,649
				$ 170,856
				$ 32,939 52,745
				$ 85,684

• 41 -

The above-mentioned deferred income tax liabilities were classified as other non-current liabilities.

• E. Unrecognized deferred tax assets:

Unrecognized deferred tax assets:
ITEMS Items not recognized as deferred tax assets: Loss on investments accounted for using the equity method Loss on financial assets evaluation Unused operating loss carry forward	31-Dec-24 $ 30,852 969 72,151 $ 103,972	31-Dec-23
		$ 39,092 969 72,151
		$ 112,212

F.Information of unused loss carry forward:

As of December 31, 2024, information on the operating loss carryforward from the subsidiary's capital reduction to cover accumulated deficits is as follows.:

reduction to cover accumulated deficits is as follows.:
ExpiryYear 2033	Remaining CreditableAmount $ 760,358	Taxeffect
		$ 152,072

• G. The tax authorities have examined income tax return of the Company through 2022.

• (25.) Earnings per Share

arnings per Share
ITEM Basic earnings per share: Net income attributable to ordinary shareholders of the parent Weighted average number of shares outstanding for the period (in thousands) Basic earnings per share, after tax (Unit: NT$ Per Share) Diluted earnings per share: Net income available to ordinary shareholders of the parent Weighted average number of shares outstanding for the period (in thousands) Effect of the dilutive potential ordinary shares Employees’ compensation (share in thousands) Weighted average number of shares outstanding for diluted earnings per share (share in thousand) Diluted earnings per share, after tax (in dollars)	For the Year Ended December 31
	2024 $ 304,705 181,140 $ 1.68 $ 304,705 181,140 350 181,490 $ 1.68	2023
		$ 375,170
		181,140
		$ 2,07
		$ 375,170
		181,140 309
		181,449
		$ 2.07

If the Company offered to settle the compensation or bonuses paid to employees in shares or cash at the Company’s option, the Company assumed that the entire amount of the compensation or bonuses will be settled in shares, and the resulting potential shares are included in the weighted average number of shares outstanding used in the calculation of diluted earnings per share if the effect is dilutive. Such dilutive effect of the potential shares is included in the calculation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.

7. TRANSACTIONS WITH RELATED PARTIES

A. Name of the parent company and the ultimate controlling party

The Company is the ultimate controlling party.

• 42 -

B. Names of related parties and relationship categories

Names of related parties and relationship categories
Names of relatedparties SynCore Biotechnology Co., Ltd. ZuniMed Biotech Co., Ltd. CANCAP PHARMACEUTICAL LTD. Sinphar Tian-Li Pharmaceutical Co., Ltd.(Hangzhou) Board of Directors, General Manager and Vice General Manager CANADA BIOTECH Shu Fei Yu	Relatedpartycategories
	Subsidiaries Subsidiaries Subsidiaries Sub-subsidiaries Key management personnel Other related parties Other related parties

• C. Significant transaction with related parties

• (A.) Revenue

Revenue
Related party category/Name Subsidiary/SynCore	FortheYear EndedDecember31
	2024 $ 5,042	2023
		$ 4,744

The prices of sales with related parties were not significantly different from those of sold to third parties, and the payment term is 30-90 days.

• (B.) Purchases of goods

Purchases of goods
Related party category/Name Subsidiaries/ZuniMed Sub-subsidiaries/Sinphar Tian-Li	For the Year Ended December31
	2024 $ 70,312 24,796 $ 95,108	2023
		$ 55,097 31,547
		$ 86,644

The prices of purchase and commission processing with related parties were not significantly different from those of purchased from third parties, and the payment term is 30-90 days.

• (C.) Lease arrangement-operating lease

The subsidiary, SynCore, leased buildings from the Company mainly for the use of office and laboratory with lease terms from August 1, 2022 to February 28, 2026. The rental price was determined in accordance with mutual agreement and the payment would be collected monthly. As of the year ended December 31, 2024 and 2023, the rental receivables were NT$7,906 thousand and NT$1,954 thousand, respectively. The rental incomes were NT$9,800 thousand and NT$10,689 thousand in 2024 and 2023, respectively.

• (D.) Trademarks and royalties

Under an agreement with CANADA BIOTECH, CANADA BIOTECH, the Company owns the right to use its trademark under the condition which the Company pays 0.2%~0.8% of annual gross profit from merchandise sale as royalty each quarter, with the annual sum of payment not less than CAD 36 thousand in Canadian currency. The Company paid the royalties amounted to NT$922 thousand and NT$901 thousand in 2024 and 2023 respectively. The payments were recognized as marketing expense.

(E.) Others

• a. The Company collected the common general administration fee, research and development cost and other income from its related party in 2024 and 2023. The amounts were described as follows:

• 43 -

Relatedpartycategory/Name Subsidiaries SynCore Others	FortheYear EndedDecember31	FortheYear EndedDecember31
	2024 $ 11,210 391 $ 11,601	2023
		$ 11,624 173
		$ 11,797

The Company entered a sales agency agreement with its Subsidiary, SynCore. The Company would charge a service fee based on the quantity of sales. The service income in 2024 and 2023 were NT$6,672 thousand and NT$6,057 thousand respectively; As of December 31, 2024 and 2023, the advance service incomes were amounted to NT$1,049 thousand and NT$890 thousand.

• b. For the year ended December 31, 2024, the Company paid its subsidiary, SynCore, NT$151 thousand for research and development expenses related to drug development.

• c. For the years ended December 31, 2024 and 2023, the Company paid its subsidiary, CANCAP, service fee amounted to NT$1,630 thousand and NT$8,548 thousand, respectively.

• d. The Company paid its subsidiaries various related operating expenses in 2024 and 2023. The amounts were described as follows:

scribed as follows:
Relatedpartycategory/Name Subsidiaries SynCore	FortheYear EndedDecember31
	2024 $ 480	2023
		$ 455

• e. For the year ended December 31, 2024, the Company paid its subsidiary, SynCore, NT$354 thousand for utility expenses paid on its behalf.

• f. The Company has successively acquired nearby agricultural land for the plant planning. However, under the current regulations, the ownership of agricultural lands could not be registered under the company. Therefore, the Company has appointed the other related party, Shu Fei Yu, to be the owner the land. Please refer to the property, plant and equipment session in Note 6(8.) for more information.

• (F.) Receivables from / payables to related parties

Item Other receivables Accounts payable Other payables	Relatedpartycategory/Name Subsidiary/SynCore Subsidiary/ZuniMed Sub-subsidiary/Sinphar Tian-Li Total Subsidiary/ZuniMed	31-Dec-24 $ 569 $ 9,022 10,811 $ 19,833 $ -	31-Dec-23
			$ 438
			$ 7,063 19,972
			$ 27,035
			$ 268

The above-mentioned other receivable was recognized as other current asset.

No endorsement or guarantee was obtained for outstanding receivables from and payables to related parties and no loss allowances were recognized for receivables from related parties for 2024 and 2023.

• (G.) Endorsements/guarantees obtain

Endorsements/guarantees obtain
Relatedpartycategory/Name Subsidiary/ZuniMed	31-Dec-24
	Endorsement/Guarantee received $ 25,000	Used Balance $ 25,000	Unused Balance
			$ -

• 44 -

Relatedpartycategory/Name Subsidiary/ZuniMed	31-Dec-23	31-Dec-23
	Endorsement/Guarantee received $ 25,000	Used Balance $ 25,000	Unused Balance
			$ -

The above is a supply guarantee of the medical institution.

• (H.) Endorsements/Guarantees provide

H.) Endorsements/Guarantees provide
			31-Dec-24
	Endorsement/Guarantee					Unused
Related Party Categories		provided	Used Balance			Balance
Subsidiary/SynCore	$	250,000	$	-	$	250,000
Subsidiary/ZuniMed		30,000		8,000		22,000
	$	280,000	$	8,000	$	272,000
			31-Dec-23
	Endorsement/Guarantee					Unused
Related PartyCategories		provided	Used Balance			Balance
Subsidiary/SynCore	$	250,000	$	-	$	250,000
Subsidiary/ZuniMed		30,000		8,000		22,000
	$	280,000	$	8,000	$	272,000
ompensation of key management personnel
The remuneration to the Board of Directors and main		management personnel were		as follows:
		For the Year Ended December				31
ITEM		2024			2023
Salaries and other short-term employee benefits		$	67,971	$		29,109

• D. Compensation of key management personnel

The remuneration to the Board of Directors and main management personnel were as follows:

• (A.)The above-mentioned compensation for the year 2024 includes severance pay related to the settlement of years of service under the defined benefit plan.

• (B.) Please refer to the shareholder meeting’s annual report for the information about the above-mentioned remuneration to board of directors and the main management personnel.

8. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The Company’s assets pledged as collateral for long-term loans are as follows:

The Company’s assets pledged as collateral for long-term	loans are as follows:
ITEM Property, plant and equipment Investment properties Intangible assets Total	31-Dec-24 $ 1,216,433 110,604 3,280 $ 1,330,317	31-Dec-23
		$ 1,255,495 111,388 4,919
		$ 1,371,802

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

• A. As of December 31, 2024, the Company issued guarantee notes amounting to the Ministry of Economic Affairs' for Industry Innovation Platform Program amounted NT$11,000 thousand.

• B. As of December 31, 2024 and 2023, Capital expenditures committed but not yet incurred are as follows:

ITEM 31-Dec-2024 31-Dec-2023 $ 47,860 $ 90,520

Property, plant and equipment

• 45 -

10. SIGNIFICANT LOSSES FROM DISASTERS: None.

11. SIGNIFICANT EVENTS AFTER REPORTING PERIOD: None.

12. OTHER INFORMATION

(1.) CAPITAL MANAGEMENT

The Company requires significant amount of capital to maintain its research and development expenditure. Accordingly, the Company manages its capital to ensure that it has sufficient and necessary financial resources and plans to fund its working capital needs, capital asset purchase, research and development expenditure, debt service requirement and dividend payments associated with its existing operations over the next 12 months.

• (2.) FINANCIAL INSTRUMENTS

• A. Financial Risk of financial instrument.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company's risk management objectives are to manage the market risk (including foreign currency risk, interest risk and price risk), credit risk and liquidity risk related to its operating activities. The Company identifies, measures and manages the aforementioned risks and mitigates the disadvantage impact on financial performance. The material treasury activities are reviewed by Audit Committees and/or Board of Directors in accordance with procedures required by relevant regulations or internal controls. During the implementation of such plans, Corporate Treasury function must comply with certain treasury procedures that provide guiding principles for overall financial risk management and segregation of duties.

NATURE AND EXTENT OF SIGNIFICANT FINANCIAL RISKS

(A)Market risk

a. Foreign currency risk

• (a.) The Company is exposed to the foreign currency risk due to the transaction of sales, purchase and cash denominated in foreign currency other than the Company’s functional currency. These non-functional currencies are USD, RMB, JPY and HKD.

• (b.) Foreign currency exposure and sensitivity analysis

Financial assets Monetaryitems USD：NT$ CNY：NT$ EUR: NT$ JPY：NT$ HKD：NT$ Financial liabilities Monetaryitems USD：NT$ CNY：NT$			31-Dec-24	31-Dec-24	31-Dec-24	31-Dec-24
	Foreign Currencies (In Thousands) $ 5,447 1,057 65 8,588 117 $ 107 2,414	Exchange Rate 32.7850 4.4780 34.1400 0.2099 4.2220 32.7850 4.4780	Carrying Amount (In Thousands) $ 178,573 4,731 2,235 1,803 494 $ 3,521 10,811	Sensitivityanalysis
				Extent of variation 1% 1% 1% 1% 1% 1% 1%	Impact on Profit or loss $ 1,786 47 22 18 5 $ 35 108	Impact on Equity
						$ - - - - $ - -

• 46 -

31-Dec-23

Financial assets Monetaryitems USD：NT$ CNY：NT$ HKD：NT$ JPY：NT$ Financial liabilities Monetaryitems USD：NT$ CNY：NT$	Foreign Currencies (In Thousands) $ 5,545 1,070 44,705 119 $ 280 4,616	Exchange Rate 30.7050 4.3270 0.2172 3.9290 30.7050 4.3270	Carrying Amount (In Thousands) $ 170,269 4,630 9,710 466 $ 8,588 19,972	Sensitivityanalysis	Sensitivityanalysis	Sensitivityanalysis
				Extent of variation 1% 1% 1% 1% 1% 1%	Impact on Profit or loss $ 1,703 46 97 5 $ 86 200	Impact on Equity
						$ - - - - $ -

If New Taiwan dollar strengthened against the relevant currency and all other variables were held constant, there would be an equal and opposite impact on profit or loss and other equity as of December 31, 2024, and December 31, 2023.

• (c.) Since there were varieties of foreign currencies within the Company, the Company disclosed the summarized foreign exchange gains (losses) information of monetary items. The realized and unrealized foreign exchange gains (losses) were NT$ 12,254 thousand and NT$ (3,530) thousand for the year ended December 31, 2024 and 2023, respectively.

• (d.) The unrealized exchange gains (losses) of fluctuation risk on foreign currency monetary item is significant. The unrealized foreign exchange gains (losses) were NT$ 450 thousand and NT$ (765) thousand for the year ended December 31, 2024 and 2023, respectively.

• b. Price risk

The Company is exposed to price risk primarily related to its investment in instruments classified as financial assets at FVTPL and financial assets at FVTOCI.

The Company primarily invested in the domestic and foreign publicly traded and unlisted stocks. The instruments prices are affected by the uncertainties of the investment targets’ future value.

Assuming a hypothetical increase/decrease of 1% in prices of the equity instruments at the end of the reporting period, the net loss for the years ended December 31, 2024 and 2023 would have increased/decreased by NT$ 450 thousand and NT$ 24 thousand, respectively, as they were classified as financial assets at FVTPL; the other comprehensive income for the years ended December 31, 2024 and 2023 would have increased/decreased by NT$ 507 thousand and NT$ 101 thousand, respectively, as they were classified as financial assets at FVTOCI.

Assuming a hypothetical increase/decrease of 1% in prices of the beneficiary certificate at the end of the reporting period

• c. Interest rate risk

• 47 -

The carrying amounts of the Company’s financial assets and financial liabilities exposed to interest rate risk were as follows:

rate risk were as follows:
Item Fair value interest rate risk Financial assets Financial liabilities Net Cash flow interest rate risk Financial assets Financial liabilities Net	CarryingAmount 31-Dec-24 31-Dec-23 $ 151,459 $ 148,480 - - $ 151,459 $ 148,480 $ 552,604 $ 548,724 (1,854,917) (1,894,963) $ (1,302,313) $ (1,346,239)
	31-Dec-24 $ 151,459 - $ 151,459 $ 552,604 (1,854,917) $ (1,302,313)

• (a.) Sensitivity analysis: Fair value interest rate risk

The Company did not designate any fixed interest rate financial instruments as fair value through profit or loss and derivatives instruments (interest rate swaps) to hedge its exposures to changes in fair values. As such, changes in interest rate would not affect the net income and the other comprehensive income at the end of the reporting period.

• (b.) Sensitivity analysis: Cash flow interest rate risk

The Company’s financial instruments at floating interest rate were assets (liabilities) at floating interest rate. Therefore, changes in interest rate would affect the future cash flows. Assuming a hypothetical increase/decrease 1% in interest rates, the net income for the years ended December 31, 2024 and 2023 would increase/decrease by NT$ 13,023 thousand and NT$ 13,462 thousand, respectively.

(B) Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial losses to the Company. The Company is exposed to credit risk from operating activities, primarily from account receivables, and from investing activities, primarily from bank deposits, fixed-income investments and other financial instruments. The Company managed the credit risk separately for business related and financial related risk.

a. Business related credit risk:

To maintain the quality of account receivable, the Company has established related credit risk management procedure. The risk assessment of individual customer includes evaluating financial position, internal evaluation, historical trading records and economic circumstance which could affect the payment ability of the customer. The Company may choose to strengthen overall risk management including collection in advance or guarantee provided by customers to mitigate the credit risk of certain customers.

b. Financial credit risk:

The financial department of the Company regularly monitors and reviews the credit risk of bank deposit and other financial instruments. The Company mitigates its exposure by selecting counterparties (banks, financial institutions, Company organizations and government authorities) with well credit and investment-grade credit ratings. The credit risk is insignificant. The Company has no debt instrument classified as financial assets measured at amortized cost and financial assse at FVTOCI.

• 48 -

(a.) Concentration of credit risk

As of December 31, 2024, and December 31, 2023, accounts receivable from the top 10 customers represent 25.68%, and 21.28% of total accounts receivables of the Company, respectively. The Company believes the concentration risk is insignificant for the remaining accounts receivable.

• (b.) Expected credit impairment losses measurement

  • Accounts receivable : Simplified approach, please refer to Note 6(4.).

  • Judgment on whether credit risk increasing significantly:None.

• (C) Liquidity risk

• a. Liquidity risk management

The Company’s objective of managing liquidity risk is to maintain sufficient cash and cash equivalents required for operations, high liquidity securities, and bank financing lines for operations, and to ensure that the Company has sufficient financial flexibility.

• b. Maturity analysis of financial liabilities

			31-Dec-24
Less than 6 Months $ 100,000 38 186,539 120,728 326,321 $ 733,626	6－12 Months $ 230,000 - - 24,011 22,655 $ 276,666	1－2 Years $ - - - - 1,143,998 $ 1,143,998	2－5 Years $ - - - - 31,943 $ 31,943	Over 5 Years $ - - - - - $ -	Contractual Cash flows $ 330,000 38 186,539 144,739 1,524,917 $ 2,186,233	Carrying Amount
						$ 330,000 38 186,539 144,739 1,524,917
						$ 2,186,233

			31-Dec-23
						Carrying Amount
						$ 360,000 302,196 149,426 1,534,963

The Company doesn’t expect the timing of occurrence of the cash flows estimated through the maturity date analysis will be significantly earlier, nor expect the actual cash flow amount will be significantly different.

B. Categories of financial instruments

The following is the carrying amounts of the financial assets and financial liabilities of the Company at December 31, 2024 and December 31, 2023.

December 31, 2024 and December 31, 2023.
- 49 - Financial assets Financial assets measured at amortized cost Cash and cash equivalents Financial assets at amortized cost - current Notes and accounts receivable (including related parties)	31-Dec-24 $ 701,496 3,926 614,217	31-Dec-23
		$ 700,998 - 589,902

Refundable deposits Financial assets at FVTPL – non-current Financial assets at FVTOCI－non-current Financial liabilities Financial liabilities measured at amortized cost Short-term loans Notes and accounts payable (including related parties) Other payable (including related parties) Long-term loans (including the current portion)	31-Dec-24 18,498 44,981 50,732 330,000 186,577 144,739 1,524,917	31-Dec-23 24,736 2,394 10,136 360,000 302,196 149,426 1,534,963

• (3.) Fair value information

• A. Details of the fair values of the Company’s financial assets and financial liabilities not measured at fair value and investment property measured at cost are provided in Note 12. (3)B and Note 6.(9), respectively.

Level 1

Fair value measurements of the Level 1 are those derived from quoted prices in active markets for identical financial instruments. An active market is a market in which transactions for identical instrument take place with sufficient frequency and volume to provide public pricing information on an ongoing basis.

Level 2

Fair value measurements are those derived from inputs other than quoted prices included within Level 1 that observable for the instrument, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3

Fair value measurements are those derived from valuation techniques that include inputs for instrument that are not based on observable market data. The Company invested in equity investments without active market included within level 3.

• B. Financial instruments that are not measured at fair value

The Company considers the carrying amounts of financial instruments that are not measured at fair value, such

as cash and cash equivalents, notes and accounts receivables, refundable deposits, accounts payable, approximate their fair values.

• C. Fair value hierarchy information

The Company’s financial instruments measured at fair value were under a recurring basis.

The following table presents the Company’s financial instruments measured at fair value on a recurring basis:

Items Asset: Fair value on a recurringbasis Financial assets measured at FVTPL Foreign unlisted publicly traded preference share		31-Dec-24	31-Dec-24
	Level 1 $ -	Level 2 $ -	Level3 $ 44,981	Total
				$ 44,981

• 50 -

Items Financial assets at FVTOCI Domestic listed ordinary (OTC) shares Domestic unlisted ordinary shares Total Items Asset: Fair value on a recurringbasis Financial assets measured at FVTPL Foreign unlisted publicly traded preference share Financial assets at FVTOCI Domestic unlisted ordinary shares		31-Dec-24	31-Dec-24
	Level 1 $ 34,776 - $ 34,776	Level 2 Level 3 $ - $ - - 15,956 $ - $ 15,956 31-Dec-23		Total
				$ 34,776 15,956
				$ 50,732
	Level 1 $ - $ -	Level 2 $ - $ -	Level3 $ 2,394 $ 10,136	Total
				$ 2,394
				$ 10,136

• D. Valuation techniques and assumptions used in fair value measurement

• (A.) If there is an active market for the financial instruments, the fair value of the financial instruments is measured by using the quoted market prices. The quoted market prices announced by the main market place and the prices of government bonds classified as popular securities announced by Taipei Exchange (TPEx) are deemed as fair value foundation of publicly traded equity instruments and debt instruments with an active market.

If there are timely and frequent quoted prices from the exchange market, the broker, the dealer, industry association, price service organization, or the administrative, and the prices represent actual, frequent, and fair trades, the financial instruments are deemed as with an active market. Otherwise, the market is deemed as not active. In general, huge price gap, price gap apparently expanding, and small trading volume were indicators of a not active market.

• (B.) Except for the aforementioned financial instruments with active market, the fair value of other financial instruments is measured by valuation technique or quotation of counterparties. The fair value from valuation technique could refer to the fair value of other financial instruments with similar substantial conditions and characteristics, discounted cash flow method and other valuation technique including model with observable market information on balance sheet date (e.g. yield curve of TPEx, quoted interest rate of Reuters commercial Note).

The fair values of non-listed equity investments were Level 3 fair value assets, and determined using the market approach by reference the peer companies valuation, third party quotation, net value and operation status. The significant unobservable input used was discount for lack of marketability. A movement in discount for the lack of marketability would not result in significant changes in the fair values.

• (C.) The Company considered the credit risk evaluation adjustment for financial instruments and non-financial instruments to reflect the credit risk of the counterparty and the credit quality of the Company.

• (D.) Valuation techniques used in Level 3 fair value Measurement:

The evaluation procedure of the financial instruments belong to Level 3 is verified by the financial

• 51 -

department of the Company through verifying the independent source inputs to make sure the evaluation results closing to the market status. To make sure the reasonability of the evaluation results, the financial department verify the independence and reliability of source data, test and renew the input data, model and other necessary inputs.

• (E.) There were no transfers between different fair value hierarchy for the years ended December 31, 2024 and 2023, respectively.

13. SEPARATELY DISCLOSED ITEMS

• (1.) Information about significant transactions:

• A. Financing provided to others: None;

• B. Endorsements/guarantees provided: Table 1 attached

• C. Marketable securities held (excluding investment in subsidiaries, associates and joint ventures): Please see Table 2 attached;

• D. Marketable securities acquired and disposed at costs or prices at least NT$300 million or 20% of the paid-in capital: None;

• E. Acquisition of individual real estate properties at costs of at least NT $300 million or 20% of the paid-in capital: None;

• F. Disposal of individual real estate at prices of at least NT$300 million or 20% of the paid-in capital: None;

• G. Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital: None;

• H. Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: None;

• I. Trading in derivative instruments: None;

• (2.) Related Information of investees: Please see Table 3 attached;

• (3.) Information on investments in Mainland China: Please see Table 4 attached and Table 3 attached;

• A. The name of the investee in mainland China, the main businesses and products, its issued capital, method of investment, information on inflow or outflow of capital, percentage of ownership, income (losses) of the investee, share of profits/losses of investee, ending balance, amount received as dividends from the investee, and the limitation on investee: See Table 4 attached.

• B. Significant direct or indirect transactions with the investee, its prices and terms of payment, unrealized gain or loss, and other related information which is helpful to understand the impact of investment in mainland China on financial reports: See Note 7 & Table 3 attached.

• (4.) Information of major shareholder (list of all shareholders with ownership 5% or greater showing the names and the number of shares and percentage of ownership held by each shareholder): Please see Table 5 attached.

14. SEGMENT INFORMATION

Please refer to the consolidated financial statements of Sinphar Pharmaceutical Co., Ltd. and subsidiaries for operating segment information.

• 52 -

Sinphar Pharmaceutical Co., Ltd. and Subsidiaries

TABLE 1

Endorsements/Guarantees provided

For the Year Ended December 31, 2024

(Amounts in thousands of New Taiwan Dollars, Unless Specified Otherwise)

		Guaranteed Party	Guaranteed Party	Limits on
				Endorsement/				Amount of	Ratio of	Maximum			Guarantee
No. (Note 1)	Endorsement / Guarantee Provider	Name	Nature of relationship (Note 2)	Guarantee Amount Provided to Each Guaranteed Party (Note 3)	Maximum Balance for the Period	Ending Balance	Amount Actually Drawn	Endorsement/ Guarantee Collateralized by Properties	Accumulated Endorsement/ Guarantee to Net Equity per Latest Financial Statements	Endorsement/ Guarantee Amount Allowable (Note 4)	Guarantee Provided by Parent Company	Guarantee Provided by A Subsidiary	Provided to Subsidiaries in Mainland China
0	Sinphar Pharmaceutical Co.,Ltd.	ZuniMed Biotech Co., Ltd.	1	$ 1,305,280	$ 30,000	$ 30,000	$ 8,000	$ -	0.92%	$ 1,631,600	Y	－	－
0	Sinphar Pharmaceutical Co.,Ltd.	SynCore Biotechnology Co.,Ltd.	1	$ 1,305,280	$ 250,000	$ 250,000	$ -	$ -	7.66%	$ 1,631,600	Y	－	－
1	ZuniMed Biotech Co., Ltd.	Sinphar Pharmaceutical Co.,Ltd	2	$ 39,239	$ 25,000	$ 25,000	$ 25,000 (Note 5)	$ -	25.48%	$ 49,049	－	Y	－

Note 1 ： (1) The issuer fills in “0”. (2) The subsidiaries are numbered in order starting from “1”.

Note 2 ： (1) The endorser/guarantor parent company owns directly and indirectly more the 50% voting shares of the endorsed/guaranteed subsidiary.

(2) The endorsed/guaranteed company owns directly and indirectly more the 50% voting shares of the endorser/guarantor parent company. Note 3 ： Maximum endorsement/guarantee amount allowable is 40% of the net worth of the Endorsement/Guarantee Provider. Note 4 ： Maximum endorsement/guarantee amount allowable is 50% of the net worth of the Endorsement/Guarantee Provider. Note 5 ： It is a supply guarantee fo r the medical institution.

• 53 -

TABLE 2

Sinphar Pharmaceutical Co., Ltd. and Subsidiaries TABLE 2

Marketable Securities Held (Excluding Subsidiaries, Associate and Joint Venture)

As of December 31, 2024

(Amounts in thousands of New Taiwan Dollars, Unless Specified Otherwise)

Held Company Name	Marketable Securities Type and Name	Relationship with Sinphar	Financial Statement Account	December 31,2024	December 31,2024	December 31,2024	December 31,2024	Note
				Shares/Units	Carrying Value	Percentage of Ownership	Fair Value
Sinphar Pharmaceutical Co., Ltd.	PHYTOCEUTICA INC.(preferred share)	Investee	Financial assets at fair value throughprofit or loss(Non-Current)	90,362.00	$ -	-	$ -	-
Sinphar Pharmaceutical Co., Ltd.	Synmosa Biopharma Corporation	－	Financial assets at fair value through other comprehensive income(Non-Current)	1,008,000.00	34,776	0.23%	34,776
Sinphar Pharmaceutical Co., Ltd.	Datun Entertainment Development Co.,Ltd.	－	Financial assets at fair value through other comprehensive income(Non-Current)	7.00	15,956	0.59%	15,956	-
SynCore Biotechnology Co., Ltd.	Fuh Hwa Money Market	－	Financial assets at fair value throughprofit or loss(Current)	252,743.00	3,788	-	3,788	-
SynCore Biotechnology Co., Ltd.	Fuh Hwa You Li Money Market	－	Financial assets at fair value throughprofit or loss(Current)	152,110.90	2,129	-	2,129	-
SynCore Biotechnology Co., Ltd.	JPMorgan（Taiwan）Glbl Fd of Bd Fds Inc	－	Financial assets at fair value throughprofit or loss(Current)	90,062.20	1,039	-	1,039	-
SynCore Biotechnology Co., Ltd.	MacuCLEAR, INC. (Preferred Share)	－	Financial assets at fair value through other comprehensive income(Non-Current)	95,160.00	-	0.95%	-	-
SynCore Biotechnology Co., Ltd.	Medigene (Common Share)	－	Financial assets at fair value through other comprehensive income(Non-Current)	112,467.00	3,908	0.76%	3,908	-

• 54 -

TABLE 3

Sinphar Pharmaceutical Co., Ltd. and Subsidiaries TABLE 3

Name, Location, and Related Information of Investees Over Which Sinphar Exercise Significant Influence (Excluding Information On Investment In Mainland China) as of December 31, 2024

(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

				Original Investment Amount	Original Investment Amount	Balance as of December 31, 2024	Balance as of December 31, 2024	Balance as of December 31, 2024	Net Income
Investor Company	Investee Company	Location	Main Businesses and Products	December	December	Shares	Percentage of	Carrying	(Losses) of the	Share of Profits / Losses of Investee	Notes
				31, 2024	31, 2023		Ownership	Value	Investee
Sinphar Pharmaceutical Co., Ltd.	CANCAP PHARMACEUTICAL LTD.(Ordinary shares)	Canada	Production and sale of healthy food	$ 92,255	$ 44,605	2,000,000	100.00%	$ -	$ (3,429)	$ (3,429)	Subsidiary
Sinphar Pharmaceutical Co., Ltd.	CANCAP PHARMACEUTICAL LTD.(Preference shares)	Canada	Production and sale of healthy food	126,247	126,247	51,500	100.00%	44,981	(3,429)	-	Subsidiary
Sinphar Pharmaceutical Co.,Ltd.	SUNETIC BIOTECH INC.	Mauritius	Investment business	745,748	745,748	18,854,534	83.47%	850,671	1,053	5,621	Subsidiary
Sinphar Pharmaceutical Co.,Ltd.	UNIVERSAL NEXT TECHNOLOGIES INC.	British Virgin Islands	Investment business	17,467	17,467	503,845	100.00%	52	23	23	Subsidiary
Sinphar Pharmaceutical Co.,Ltd.	ZuniMed Biotech Co., Ltd.	Taiwan	Production and sale of medical appliances	109,990	109,990	10,300,000	100.00%	93,527	3,431	2,328	Subsidiary
Sinphar Pharmaceutical Co.,Ltd.	SynCore Biotechnology Co., Ltd.	Taiwan	Biotechnology service	1,864,935	1,864,935	22,597,472	64.26%	189,270	(54,283)	(34,784)	Subsidiary
SynCore Biotechnology Co., Ltd.	SynCore Biotechnology Europe GmbH	Germany	New drugs development and biotechnology service	834	834	25,000	100.00%	759	19	19	Subsidiary

Note1：The shares of profits/losses of investee were calculated based on the financial statements audited by the CPAs. The effect of realized (unrealized) gains and losses have already been considered.

Note2：CANCAP PHARMACEUTICAL LTD. ’s Board of Directors resolved in August 2024 to redeem and cancel all common shares to offset accumulated losses.

Simultaneously, the Company conducted a cash capital increase. The Company's shareholding originally amounted to 2,140,000 shares and was adjusted to 2,000,000 shares after the capital increase.

• 55 -

TABLE 4

Sinphar Pharmaceutical Co., Ltd. and Subsidiaries TABLE 4

INFORMATION ON INVESTMENT IN MAINLAND CHINA

FOR THE YEAR ENDED DECEMBER 31, 2024

(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Investee Company	Main Businesses and Products	Main Businesses and Products	Total Amount of Paid-in Capital (RMB in Thousands)	Method of Investment	Method of Investment	Accumulated Outflow of Investment from Taiwan as of January 1, 2024	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of December 31,2024	Net Income (Losses) of Investee Company	Percentage of Ownership	Shares of Profits/Losses (note 1)	Carrying Amount as of December 31, 2024	Accumulated Inward Remittance of Earnings as of December 31,2024
							Outflow	Inflow
Sinphar Tian-Li Pharmaceutical Co., Ltd.(Hangzhou)	Production and sales of raw materials, pharmaceuticals		RMB 193,005	Indirect investment in mainland China by SUNETIC BIOTECH INC., an 83.47% owned subsidiary of Sinphar		$ 645,635 (USD 19,786 thousand)	-	-	$ 645,635 (USD 19,786 thousand)	$ 1,259	83.47%	$ 5,793	$ 871,124	$ 179,317
Hetian Tianli shasheng Pharmaceutical Development Co., Ltd.	Scientific research and production and sales of shasheng Pharmaceutical		RMB 10,000	Indirect investment in mainland China by Sinphar Tian-Li Pharmaceutical Co., Ltd.(Hangzhou), a sub-subsidiary company of which Sinphar holds 83.47% of the total shares		-	-	-	-	(8,584)	75.96%	(10,145)	76,102	-
Hangzhou Vitrum Healthy Food Co., Ltd.	Sale of healthy food		RMB 30,000	Indirect investment in mainland China by Sinphar Tian-Li Pharmaceutical Co., Ltd.(Hangzhou) a sub-subsidiary company of which Sinphar holds 83.47% of the total shares.		-	-	-	-	(492)	83.47%	(410)	1,167	-
							Upper Limit on Investment (Note 3) 1,957,920
		Accumulated Investment in Mainland China as of December 31, 2024 (US$in Thousands)			Investment Amounts Authorized by Investment Commission, MOEA (US$ in Thousands)		Upper Limit on Investment (Note 3)
		652,200 (USD 19,986(Note 2))			830,155 (USD 25,321)		1,957,920

Note 1 ： The shares profits/losses of investee were calculated based on the financial statements audited by the R.O.C. CPAs of the parent company.

Note 2 ： The amount included the indirect investment of UNIVERSAL NEXT TECHOLOGY INC to Qinghai Mingxing Bio-Engineering Co., amounting to USD$ 200 thousand, which has already been cancelled by the Investment Board. Note 3 ： According to the regulations of the Investment Commission of the Ministry of Economic Affairs, the upper limit of the cumulative amount of its investment in the mainland is 60% of the net value.

• 56 -

Sinphar Pharmaceutical Co., Ltd.

TABLE 5

Information of major shareholders

December 31, 2024

Shareholders	Shares	Shares
	Total shares owned (In thousands)	Ownership Percentage
XING-DA CAPITAL CORP.	17,294	9.54%
PURZER PHARMACEUTICAL CO., LTD.	9,623	5.31%

Note: The main shareholder information in this table is calculated by Taiwan Depository & Clearing Corporation, using total number of ordinary shares and preferred shares held by the shareholders who have completed Sinphar’s dematerialized securities registration and delivery (including treasury shares) is more than 5% on the last business day at the end of each quarter. As for the difference between capital stock recorded in Sinphar's financial report and the number of shares which Sinphar actually have completed the dematerialized securities registration and delivery, may result from computation basis.

• 57 -

THE CONTENTS OF STATEMENTS OF MAJOR ACCOUNTING ITEMS

ITEM MAJOR ACCOUNTING ITEMS IN ASSETS, LIABILITIES AND EQUITY STATEMENT OF CASH AND CASH EQUIVALENTS STATEMENT OF NOTES AND ACCOUNTS RECEIVABLE, NET STATEMENT OF INVENTORIES STATEMENT OF NON-CURRENT FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND LOSS STATEMENT OF NON-CURRENT FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD STATEMENT OF CHANGES IN PROPERTY, PLANT AND EQUIPMEN STATEMENT OF CHANGES IN ACCUMULATED DEPRECIATION AND ACCUMULATED IMPAIRMENT OF PROPERTY, PLANT AND EQUIPMENT STATEMENT OF CHANGES IN INVESTMENT PROPERTY STATEMENT OF HANGES IN ACCUMULATED DEPRECIATION AND ACCUMULATED IMPAIRMENT OF INVESTMENT PROPERTY STATEMENT OF CHANGES IN INTANGIBLE ASSETS STATEMENT OF DEFERRED INCOME TAX ASSETS / LIABILITIES STATEMENT OF SHORT-TERM LOANS STATEMENT OF ACCOUNTS PAYABLES STATEMENT OF ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES STATEMENT OF LONG-TERM LOANS MAJOR ACCOUNTING ITEMS IN PROFIT OR LOSS STATEMENT OF NET REVENUE STATEMENT OF COST OF REVENUE STATEMENT OF OPERATING EXPENSES STATEMENT OF LABOR, DEPRECIATION AND AMORTIZATION BY FUNCTION

STATEMENT INDEX

1 2 3 4 5 6 Note 6(8.) Note 6(8.) Note 6(9.) Note 6(9.) Note 6(10.) Note 6(24.) 7 8 Note 6(12.) 9 10 11 12 Note 6(22.)

• 58 -

STATEMENT 1

Sinphar Pharmaceutical Co., Ltd. STATEMENT OF CASH AND CASH EQUIVALENTS DECEMBER 31, 2024

Amounts in Thousands of New Taiwan Dollars and Foreign Currencies in Dollars

Item Cash Bank deposits	Description Petty cash and cash on hand Check deposits Demand deposits: Chang Hwa Commercial Bank, Ltd. Tatung Branch Mega International Commercial Bank Co., Ltd. Yilan Branch Taiwan Business Bank Co., Ltd. Su’ao Branch First Commercial Bank Su’ao Branch Land Bank of Taiwan Hsinyi Branch Taiwan Cooperative Bank Bei Luodong Branch Bank of Taiwan Lou Tung Branch others Foreign currency deposits: Mega International Commercial Bank Co., Ltd. Yilan Branch (USD$ 174,447.69 Exchange rate:32.7850) Taiwan Business Bank Co., Ltd. Su’ao Branch (USD$ 151,685,76 Exchange rate:32.7850) Chang Hwa Commercial Bank, Ltd. Tatung Branch (USD$ 143,463.29 Exchange rate:32.7850) Taiwan Cooperative Bank Bei Luodong Branch (USD$118,840.94 Exchange rate:32.7850) others Time deposits: Taiwan Cooperative Bank Bei Luodong Branch (USD$ 1,250,000.00 Interest rate:4.36 % Exchange rate:32.7850) Mega International Commercial Bank Co., Ltd. Yilan Branch (USD$ 1,250,000.00 Interest rate: 4.50% Exchange rate:32.7850) Chang Hwa Commercial Bank, Ltd. Tatung Branch (USD$ 1,000,000.00Interest rate:4.50% Exchange rate:32.7850) Taiwan Business Bank Co., Ltd. Su’ao Branch (USD$ 1,000,000.00 Interest rate:4.35%~4.40% Exchange rate:32.7850)		Amount
		$	1,350
			9
			178,920 63,401 51,818 45,608 40,147 34,194 31,054 82,745
			527,887
			5,719 4,973 4,704 3,896 5,425
			24,717
			40,982 40,981 32,785 32,785
			147,533
		$	701,496

• 59 -

STATEMENT 2

Sinphar Pharmaceutical Co., Ltd.

STATEMENT OF NOTES AND ACCOUNTS RECEIVABLE

DECEMBER 31, 2024

Amounts in Thousands of New Taiwan Dollars

Client Name Notes Receivable: Third Parties: Hoja Life Development Co.,Ltd. Others(The amount of individual clients in others does not exceed 5% of this account balance) Less：Loss allowance Net Accounts Receivable: Third Parties: Watson''s Personal Care Stores(Taiwan) Co., Limited. H Company Others( The amount of individual clients in others does not exceed 5% of this account balance) Less：Loss allowance Net	Description Payments Payments Payments Payments Payments	Amount $ 27,869 119,263 147,132 (507) $ 146,625 $ 28,945 26,355 419,551 474,851 (7,259) $ 467,592	Note
			- - - - -

• 60 -

STATEMENT 3

Sinphar Pharmaceutical Co., Ltd.

STATEMENT OF INVENTORIES

DECEMBER 31, 2024

Amounts in Thousands of New Taiwan Dollars

Item Raw materials Materials Work in process Finished goods Merchandise Less：Allowance for loss Net	Description Western medicine raw materials, natural raw materials, etc. Empty capsules, medicine bottles and instructions, etc. Pharmaceuticals in progress, etc. Medicines, health food, etc. Health food	Amount Cost Net Realizable Value $ 293,194 $ 274,883 46,954 46,236 57,096 54,264 256,454 494,517 1,902 3,788 655,600 (49,249) $ 606,351	Note
		Cost $ 293,194 46,954 57,096 256,454 1,902 655,600 (49,249) $ 606,351
			- - - - -

• 61 -

STATEMENT 4

Sinphar Pharmaceutical Co., Ltd.

STATEMENT OF NON-CURRENT FINANCIAL ASSETS AT FAIR VALUE THROUGHT PROFIT OR LOSS FOR THE YEAR ENDED DECEMBER 31, 2024

Amounts in Thousands of New Taiwan Dollars; Shares / Units

Name of financial instruments CANCAP PHARMACEUTICAL LTD. (preferred share) PHYTOCEUTICA INC.(preferred share) Less: Accumulated Impairment Total	As of January 1, 2024 Shares Amount 51,500 $ 2,394 90,362 4,844 7,238 (4,844) $ 2,394	Additions Shares Amount - $ 42,587 - - 42,587 - $ 42,587	Decrease Shares Amount - $ - - - - - $ -	As of December 31, 2024 Shares Amount 51,500 $ 44,981 90,362 4,844 49,825 (4,844) $ 44,981	Collateral - -	Note
	Shares 51,500 90,362	Shares - -	Shares - -	Shares 51,500 90,362
						- -

Note: In August 2024, the Board of Directors of CANCAP PHARMACEUTICAL LTD. resolved to redeem and cancel all 2,420 thousand previously issued common shares to offset accumulated losses. Simultaneously, the Company issued 2,000,000 ordinary shares at a par value of CAD 1 per share, with the total amount of CAD 2,000 thousand fully subscribed by the Company. Due to the evaluation of CANCAP PHARMACEUTICAL LTD.'s operating losses under the equity method, the book value of the Company's long-term equity investment recorded a credit balance. Consequently, the credit amount of NT$81,266 thousand recognized under the equity method was deducted from 'Financial Assets Measured at Fair Value through Profit or Loss.' Furthermore, the capital increase led to a reversal of the capital reduction in the current period, increasing by NT$42,587 thousand.

• 62 -

STATEMENT 5

Sinphar Pharmaceutical Co., Ltd.

STATEMENT OF NON-CURRENT FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2024

Name of financial instruments Datun Entertainment Development Co., Ltd. (ordinary shares) Synmosa Biopharma Corporation (ordinary shares) Total	As of January 1, 2024 Shares Amount 5 $ 10,136 - - $ 10,136	Additions Shares Amount 2 $ 5,140 1,008,000 36,068 $ 41,208	Decrease Shares Amount - $ - - - $ -	Amounts in Thousands of New Taiwan Dollars; Shares / Other movements As of December 31, 2024 Collateral Amount (Note1) Shares Amount $ 680 7 $ 15,956 - (1,292) 1,008,000 34,776 - $ (612) $ 50,732	Units Note
	Shares	Shares	Shares - -
	5 -	2 1,008,000			- -

Note1: Adjustments made based on the mark-to-market valuation method.

• 63 -

STATEMENT 6

Sinphar Pharmaceutical Co., Ltd.

STATEMENT OF INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD FOR THE YEAR ENDED DECEMBER 31, 2024

Name of financial instruments	As of January1,2024	As of January1,2024	Additions	Additions	Decr	ease	Share of profit(loss)	Cumulative translation difference	Unrealized Loss on Financial Assets at Fair Value Through Other Comprehensive Income	As	Amounts in Thousands of New Taiwan Dollars; Shares / Units Percentage of Ownership 100.00% $ (81,266) $ - $ (81,266) - Note 1 83.47% 850,671 - 872,917 - - 100.00% 52 - 52 - - 100.00% 93,527 - 98,099 - - 64.26% 189,270 - 189,703 - - 1,052,254 $ 1,079,505 81,266 $ 1,133,520 of December 31,2024 Collateral Note Amount Unitprice Market price or net equity value Total	Amounts in Thousands of New Taiwan Dollars; Shares / Units Percentage of Ownership 100.00% $ (81,266) $ - $ (81,266) - Note 1 83.47% 850,671 - 872,917 - - 100.00% 52 - 52 - - 100.00% 93,527 - 98,099 - - 64.26% 189,270 - 189,703 - - 1,052,254 $ 1,079,505 81,266 $ 1,133,520 of December 31,2024 Collateral Note Amount Unitprice Market price or net equity value Total	Amounts in Thousands of New Taiwan Dollars; Shares / Units Percentage of Ownership 100.00% $ (81,266) $ - $ (81,266) - Note 1 83.47% 850,671 - 872,917 - - 100.00% 52 - 52 - - 100.00% 93,527 - 98,099 - - 64.26% 189,270 - 189,703 - - 1,052,254 $ 1,079,505 81,266 $ 1,133,520 of December 31,2024 Collateral Note Amount Unitprice Market price or net equity value Total	Amounts in Thousands of New Taiwan Dollars; Shares / Units Percentage of Ownership 100.00% $ (81,266) $ - $ (81,266) - Note 1 83.47% 850,671 - 872,917 - - 100.00% 52 - 52 - - 100.00% 93,527 - 98,099 - - 64.26% 189,270 - 189,703 - - 1,052,254 $ 1,079,505 81,266 $ 1,133,520 of December 31,2024 Collateral Note Amount Unitprice Market price or net equity value Total
	Shares	Amount	Shares	Amount	Shares	Amount				Shares	Percentage of Ownership	Amount	Unitprice	Total
CANCAP PHARMACEUTICAL LTD.(ordinary shares) SUNETIC BIOTHECH INC UNIVERSAL NEXT TECHNOLOGIES INC ZuniMed Biotech Co., Ltd. SynCore Biotechnology Co., Ltd. Add: Credit balance of investments accounted for using equity method Total	2,140,000 18,854,534 503,845 10,300,000 22,597,472	$ (123,853) 815,584 27 91,199 229,301	2,000,000 - - - -	$ 47,650 - - - -	(2,140,000) - - - -	$ - - - - -	$ (3,429) 5,621 23 2,328 (34,784)	$ (1,634) 29,466 2 - 2	$ - - - - (5,249)	2,000,000 18,854,534 503,845 10,300,000 22,597,472	100.00% 83.47% 100.00% 100.00% 64.26%	$ (81,266) 850,671 52 93,527 189,270	$ - - - - -	$ (81,266) 872,917 52 98,099 189,703
		1,012,258 123,853		$ 47,650		$ -	$ (30,241)	$ 27,836	$ (5,249)			1,052,254 81,266		$ 1,079,505
		$ 1,136,111										$ 1,133,520

Note1: CANCAP PHARMACEUTICAL LTD. , which is evaluated by the equity method, has a credit balance on the book value of the long-term investment due to the operating loss. The amount of NT$81,266 thousand has been transferred to “Financial Assets measured at Fair Value through Profit or Loss - non-current”.

Note2: CANCAP PHARMACEUTICAL LTD. , which is evaluated by the equity method, resolved reduce capital to offset a deficit and increase capital. Please refer to Note 6(7.) for the Company’s participation.

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STATEMENT 7

Sinphar Pharmaceutical Co., Ltd.

STATEMENT OF SHORT-TERM LOANS

DECEMBER 31, 2024

Amounts in Thousands of New Taiwan Dollars

Description Unsecured borrowings	Nature The Export-Import Bank of ROC Taiwan Cooperative Bank E.SUN Commercial Bank, Ltd. Chang Hwa Commercial Bank, Ltd. Taishin International Bank Co., Ltd. Land Bank of Taiwan	Ending Balance 100,000 $ 50,000 50,000 50,000 50,000 30,000 $ 330,000	Contract Period 2024/08~2025/08 2024/11~2025/11 2024/09~2025/09 2024/06~2025/05 2024/07~2025/06 2024/10~2025/10	Range of Interest Rate 1.883%~1.899% 1.88% 2.22% 1.89% 2.12% 2.19%	Credit Line 100,000 $ 150,000 100,000 150,000 200,000 100,000	Collateral - - - - -	Note
							- - - - -

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STATEMENT 8

Sinphar Pharmaceutical Co., Ltd.

STATEMENT OF ACCOUNTS PAYABLE

DECEMBER 31, 2024

Client Name Related parties: Sinphar Tian-Li Pharmaceutical Co., Ltd.(Hangzhou) ZuniMed Biotech Co., Ltd. Third parties: Lynnbros Industrial Co., Ltd. New-In Co., Ltd. Others(The amount of individual item in others does not exceed 5% of the account balance) Total	Amounts in Thousands of New Taiwan Dollars Description Amount Note Payments $ 10,811 - Payments 9,022 - 19,833 Payments 9,608 - Payments 9,562 - Payments 147,536 - 166,706 $ 186,539

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STATEMENT 9

Sinphar Pharmaceutical Co., Ltd. STATEMENT OF LONG-TERM LOANS DECEMBER 31, 2024

Amounts in Thousands of New Taiwan Dollars

Creditor Description Bank of Taiwan Lou Tung Branch Secured Loans Secured Loans Secured Loans Secured Loans First Commercial Bank Su’ao Branch Secured Loans Secured Loans Unsecured Loans Mega International Commercial Bank Co., Ltd. Yilan Branch Secured Loans Secured Loans Taiwan Business Bank Co., Ltd. Su’ao Branch Secured Loans Secured Loans Subtotal Less：Current portion	Amount $ 3,666 30,441 36,905 270,000 30,013 100,000 340,000 311 389,000 24,611 300,000 1,524,917 (348,976) $ 1,175,941	Contract Period	Interest Rate 2.801% 2.355% 2.548% 1.961% ~1.963% 2.425% 1.925% 1.975% 2.465% 1.924% ~1.994% 2.320% 1.850%	Collateral (Note 1) Buildings Buildings Machinery Land and buildings Land and buildings Land and buildings None Land and buildings Land and buildings Land and buildings Land and buildings	Note
		2010/12-2025/12 2013/10-2028/10 2020/07-2027/07 2023/10-2026/04 2011/12-2026/12 2025/01-2027/01 2025/10-2027/01 2005/12-2025/12 2024/01-2026/01 2007/11-2027/11 2023/03-2025/03			One-monthly installments, divided into 180 installments equal repayments One-monthly installments, divided into 180 installments equal repayments One-monthly installments, divided into 84 installments equal repayments During the credit period, maturity to renew One-monthly installments, divided into 180 installments equal repayments During the credit period, maturity to renew During the credit period, maturity to renew Six-monthly installments, divided into 40 installments equal repayments During the credit period, maturity to renew One-monthly installments, divided into 240 installments equal repayments During the credit period, maturity to renew

Note1: Please refer to Note 8 for collaterals pledged for long-term borrowings.

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STATEMENT 10

Sinphar Pharmaceutical Co., Ltd.

STATEMENT OF OPERATING REVENUES

FOR THE YEAR ENDED DECEMBER 31, 2024

Item Pharmaceutical Healthy food Cosmetic Sales revenue Less:Sales return and allowances Total	Amounts in Quantity (Unit) Thousand grain, kilogram and liter Thousand grain, kilogram and liter Kilogram and liter	Thousands of New Taiwan Dollars Amount Note $ 2,107,245 - 999,887 - 90,518 - 3,197,650 - (337,335) - $ 2,860,315	Thousands of New Taiwan Dollars Amount Note $ 2,107,245 - 999,887 - 90,518 - 3,197,650 - (337,335) - $ 2,860,315
			- - - - -

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STATEMENT 11

Sinphar Pharmaceutical Co., Ltd. STATEMENT OF OPERATING COSTS FOR THE YEAR ENDED DECEMBER 31, 2024

Amounts in Thousands of New Taiwan Dollars

Item Raw materials： Beginning raw materials Add: Raw materials purchased Less: Ending raw materials Scrap of inventories Transfers to expense Raw materials sold Loss on physical inventory Raw materials used during the year Supplies： Beginning supplies Add: Supplies purchased gain on physical inventory Less: Ending supplies Scrap of inventories Transfers to expense Supplies sold Supplies used during the year Direct labor Manufacturing expense Manufacturing cost Add: Beginning work in progress Outsourcing costs Less: Ending work in progress Scrap of inventories Transfers to expense Loss on physical inventory Cost of finished goods and merchandise Add: Beginning finished goods and merchandise Finished goods purchased Less: Ending finished goods and merchandise Scrap of inventories Transfers to expense Cost of goods manufactured and sold Other operating costs Total operating costs

Amount $ 335,441 720,503 (293,194) (7,914) (10,116) (5,156) (70) 739,494 49,304 246,851 1,778 (46,954) (1,213) (3,982) (104) 245,680 134,958 529,939 1,650,071 74,607 31,769 (57,096) (3,449) (5,754) (8) 1,690,140 302,743 3,452 (258,356) (6,612) (15,219) 1,716,148 10,416 $ 1,726,564

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STATEMENT 11

Sinphar Pharmaceutical Co., Ltd.

STATEMENT OF OPERATING EXPENSE

FOR THE YEAR ENDED DECEMBER 31, 2024

Item Wages and salaries Advertisement expense Insurance expense Entertainment expense Depreciation Amortizations Consumables Service fee Promotional expenses Others (Note) Expected credit losses	Selling Expenses $ 200,871 121,177 15,751 4,755 12,132 1,010 71 939 79,528 91,946 $ 528,180	Amounts in Thousands of New Taiwan Dollars Administrative Expenses Research and Development Expenses Total $ 75,316 $ 52,486 $ 328,673 3,806 - 124,983 7,953 5,491 29,195 9,765 76 14,596 5,411 13,087 30,630 13,161 4,534 18,705 801 15,917 16,789 8,858 313 10,110 - - 79,528 32,213 25,778 149,937 $ 157,284 $ 117,682 803,146 - $ 803,146	Amounts in Thousands of New Taiwan Dollars Administrative Expenses Research and Development Expenses Total $ 75,316 $ 52,486 $ 328,673 3,806 - 124,983 7,953 5,491 29,195 9,765 76 14,596 5,411 13,087 30,630 13,161 4,534 18,705 801 15,917 16,789 8,858 313 10,110 - - 79,528 32,213 25,778 149,937 $ 157,284 $ 117,682 803,146 - $ 803,146
			$ 328,673 124,983 29,195 14,596 30,630 18,705 16,789 10,110 79,528 149,937
			803,146 -
			$ 803,146

Note: The amount of each item in others does not exceed 5% of the account balance.

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