Taiwan Cogeneration Corporation and Subsidiaries

Consolidated Financial Statements for the Nine Months Ended September 30, 2025 and 2024 and Independent Auditors' Review Report

Deloitte.

勤業眾信

勤業眾信聯合會計師事務所

110421 台北市信義區松仁路100號20樓

Deloitte & Touche

20F, Taipei San Shan Plaza

No. 100, Songren Rd.,

Xinyi Dist., Taipei 110421, Taiwan

Tel: +886 (2) 2725-9988

Fax: +886 (2) 4051-6888

www.deloitte.com.tw

INDEPENDENT AUDITORS’ REVIEW REPORT

The Board of Directors and Shareholders

Taiwan Cogeneration Corporation

Introduction

We have reviewed the accompanying consolidated balance sheets of Taiwan Cogeneration Corporation (the “Corporation”) and its subsidiaries (collectively, the “Group”) as of September 30, 2025 and 2024, the related consolidated statements of comprehensive income for the three months ended September 30, 2025 and 2024 and for the nine months ended September 30, 2025 and 2024, the consolidated statements of changes in equity and cash flows for the nine months ended September 30, 2025 and 2024, and the related notes to the consolidated financial statements, including material accounting policy information (collectively referred to as the “consolidated financial statements”). Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

We conducted our reviews in accordance with the Standards on Review Engagements of the Republic of China 2410 “Review of Interim Financial Information Performed by the Independent Auditor of the Entity”. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our reviews, nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as of September 30, 2025 and 2024, its consolidated financial performance for the three months ended September 30, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the nine months ended September 30, 2025 and 2024 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Emphasis of Matter

For details on Taiwan Power Company’s filing of a civil lawsuit against the Group’s associates, Sun Ba Power Corporation, Star Energy Power Corporation, Star Buck Power Corporation and Kuo Kuang Power Company Ltd., in connection with their alleged violation of the Fair Trade Act and request for compensation on the basis of claims for damages which it has suffered, refer to Note 40 (d). Our review conclusion is not modified in respect of this matter.

The engagement partners on the reviews resulting in this independent auditors’ review report are Chao-Mei Chen and Cheng-Chuan Yu.

Deloitte & Touche
Taipei, Taiwan
Republic of China

November 12, 2025

Notice to Readers

The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to review such consolidated financial statements are those generally applied in the Republic of China.

For the convenience of readers, the independent auditors’ review report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ review report and consolidated financial statements shall prevail.

TAIWAN COGENERATION CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

ASSETS	September 30, 2025		December 31, 2024		September 30, 2024
	Amount	%	Amount	%	Amount	%
CURRENT ASSETS
Cash and cash equivalents (Note 6)	$ 2,809,723	9	$ 1,843,366	7	$ 1,670,426	6
Financial assets at amortized cost (Notes 7, 8 and 39)	483,266	2	490,166	2	436,833	2
Contract assets (Notes 5, 27, 29 and 38)	2,749,851	9	4,137,142	15	3,551,235	13
Notes receivable (Notes 9 and 29)	-	-	-	-	2,600	-
Accounts receivable (Notes 9 and 29)	692,468	2	694,963	2	1,271,024	5
Accounts receivable from related parties (Notes 29 and 38)	281,190	1	177,520	1	128,758	1
Finance lease receivables (Notes 10 and 38)	9,135	-	852	-	3,346	-
Dividends receivable	-	-	320,940	1	-	-
Other receivables (Note 38)	121,747	1	53,302	-	62,300	-
Inventories (Note 11)	8,090	-	8,110	-	10,248	-
Prepaid construction costs (Note 27)	284,531	1	159,210	1	-	-
Prepaid value-added tax	90,760	-	72,624	-	64,964	-
Other current assets	52,067	-	59,811	-	89,518	-
Total current assets	7,582,828	25	8,018,006	29	7,291,252	27
NON-CURRENT ASSETS
Financial assets at fair value through other comprehensive income (Notes 12 and 37)	270,557	1	268,557	1	267,854	1
Financial assets at amortized cost (Notes 7, 8 and 39)	6,604	-	6,500	-	6,500	-
Investments accounted for using the equity method (Notes 4 and 15)	17,696,425	58	13,821,210	51	13,841,447	52
Property, plant and equipment (Notes 16 and 39)	3,895,620	13	4,082,756	15	4,060,529	15
Right-of-use assets (Note 17)	400,700	1	391,463	2	378,794	2
Goodwill (Note 18)	20,314	-	20,314	-	96,370	1
Intangible assets (Note 19)	274,622	1	295,795	1	304,379	1
Deferred income tax assets (Note 4)	255,464	1	253,106	1	244,318	1
Prepayments for equipment	832	-	15,787	-	15,057	-
Refundable deposits	112,393	-	91,585	-	88,054	-
Finance lease receivables (Notes 10 and 38)	3,083	-	-	-	-	-
Other non-current assets (Note 20)	17,629	-	18,423	-	18,686	-
Total non-current assets	22,954,243	75	19,265,496	71	19,321,988	73
TOTAL	$ 30,537,071	100	$ 27,283,502	100	$ 26,613,240	100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term borrowings (Note 21)	$ -	-	$ -	-	$ 35,000	-
Short-term bills payable (Note 21)	1,896,244	6	499,764	2	499,754	2
Contract liabilities (Notes 5, 27, 29 and 38)	114	-	244,752	1	114	-
Accounts payable	87,590	-	107,195	1	130,908	1
Construction costs payable (Note 27)	4,464,081	15	4,384,713	16	4,425,941	17
Accounts payable to related parties (Note 38)	1,620	-	1,438	-	1,592	-
Other payables (Notes 23 and 38)	424,233	2	486,484	2	420,176	2
Current income tax liabilities (Note 4)	56,131	-	58,728	-	18,103	-
Provisions (Notes 4, 25 and 27)	648,604	2	624,339	2	562,892	2
Lease liabilities (Notes 17 and 38)	58,292	-	28,659	-	49,284	-
Current portion of bonds payable (Note 22)	-	-	1,899,655	7	1,899,516	7
Current portion of long-term borrowings (Notes 21 and 39)	933,517	3	221,829	1	123,971	-
Other current liabilities	6,048	-	7,124	-	2,556	-
Total current liabilities	8,576,474	28	8,564,680	32	8,169,807	31
NON-CURRENT LIABILITIES
Long-term borrowings (Notes 21 and 39)	5,109,037	17	1,887,358	7	2,012,554	8
Contract liabilities (Note 29)	152,160	1	134,637	1	130,540	1
Lease liabilities (Notes 17 and 38)	422,504	1	427,606	2	395,271	2
Bonds payable (Note 22)	599,568	2	599,503	2	599,481	2
Provisions (Note 25)	18,730	-	14,938	-	14,855	-
Deferred income tax liabilities (Note 4)	54,481	-	58,100	-	59,530	-
Net defined benefit liabilities (Notes 4 and 26)	108,058	-	109,112	-	123,155	-
Guarantee deposits received	124,927	1	89,397	-	90,324	-
Other liabilities (Note 24)	12,770	-	14,367	-	14,447	-
Total non-current liabilities	6,602,235	22	3,335,018	12	3,440,157	13
Total liabilities	15,178,709	50	11,899,698	44	11,609,964	44
EQUITY ATTRIBUTABLE TO OWNERS OF THE CORPORATION (Note 28)
Share capital
Ordinary shares	7,302,820	24	7,302,820	27	7,302,820	27
Capital surplus	2,785,428	9	2,621,919	9	2,621,919	10
Retained earnings
Legal reserve	2,127,679	7	1,954,986	7	1,954,986	7
Special reserve	1,806,380	6	2,148,332	8	2,148,332	8
Unappropriated earnings	1,384,436	4	1,388,059	5	988,263	4
Total retained earnings	5,318,495	17	5,491,377	20	5,091,581	19
Other equity	(48,381)	-	(32,312)	-	(13,044)	-
Total equity	15,358,362	50	15,383,804	56	15,003,276	56
TOTAL	$ 30,537,071	100	$ 27,283,502	100	$ 26,613,240	100

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

(With Deloitte & Touche review report dated November 12, 2025)

TAIWAN COGENERATION CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

	For the Three Months Ended September 30				For the Nine Months Ended September 30
	2025		2024		2025		2024
	Amount	%	Amount	%	Amount	%	Amount	%
OPERATING REVENUE
(Notes 5, 29 and 38)
Sales	$ 427,780	31	$ 398,902	19	$ 1,264,990	23	$ 1,142,779	17
Construction services	886,123	63	1,684,686	79	4,132,263	73	5,210,401	80
Operations, maintenance and consulting services	85,862	6	55,200	2	246,847	4	194,925	3
Total operating revenues	1,399,765	100	2,138,788	100	5,644,100	100	6,548,105	100
OPERATING COSTS (Notes 5, 26, 30 and 38)
Cost of sales	315,688	22	314,246	15	945,541	17	912,289	14
Construction services	891,914	64	1,601,078	75	3,679,933	65	4,946,163	75
Operations, maintenance and consulting services	81,326	6	45,152	2	224,225	4	171,855	3
Total operating costs	1,288,928	92	1,960,476	92	4,849,699	86	6,030,307	92
GROSS PROFIT	110,837	8	178,312	8	794,401	14	517,798	8
REALIZED GAIN ON TRANSACTIONS WITH ASSOCIATES	8,061	-	8,061	1	24,184	1	24,187	-
REALIZED GROSS PROFIT	118,898	8	186,373	9	818,585	15	541,985	8
OPERATING EXPENSES
(Notes 26, 30 and 38)	102,078	7	101,989	5	342,498	6	307,029	4
PROFIT FROM OPERATIONS	16,820	1	84,384	4	476,087	9	234,956	4
NON-OPERATING INCOME AND EXPENSES
Interest income	8,356	1	5,386	-	21,233	-	18,873	-
Other income (Notes 30 and 38)	3,862	-	3,192	-	22,134	-	19,966	1
Other gains and losses (Notes 30 and 33)	40,881	3	(2,648)	-	34,678	1	2,689	-
Finance costs (Notes 30 and 38)	(39,612)	(3)	(18,420)	(1)	(81,606)	(1)	(56,056)	(1)
Share of profit of associates accounted for using the equity method (Note 15)	103,502	8	187,513	9	983,201	17	791,714	12
Total non-operating income and expenses	116,989	9	175,023	8	979,640	17	777,186	12
INCOME BEFORE TAX FROM CONTINUING OPERATIONS	133,809	10	259,407	12	1,455,727	26	1,012,142	16
INCOME TAX BENEFIT (EXPENSE) (Notes 4 and 31)	1,960	-	(7,306)	-	(95,017)	(2)	(40,801)	(1)
INCOME FROM CONTINUING OPERATIONS	135,769	10	252,101	12	1,360,710	24	971,341	15
LOSS FROM DISCONTINUED OPERATIONS (Notes 13, 29, 30 and 31)	-	-	-	-	-	-	(7,200)	-
NET PROFIT	135,769	10	252,101	12	1,360,710	24	964,141	15

(Continued)

TAIWAN COGENERATION CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

	For the Three Months Ended September 30	For the Nine Months Ended September 30
2025	2024	2025
Amount	%	Amount
OTHER COMPREHENSIVE INCOME (LOSS)
Items that will not be reclassified subsequently to profit or loss:
Unrealized gain (loss) on investments in equity instruments at fair value through other comprehensive income (Note 37)	$ 2,000	-
Share of other comprehensive loss of associate accounted for using the equity method	(359)	-
	1,641	-
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of the financial statements of foreign operations	942	-
Share of the other comprehensive income (loss) of associate accounted for using the equity method	1,900	-
	2,842	-
Other comprehensive income (loss) for the period, net of income tax	4,483	-
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	$ 140,252	10
NET PROFIT (LOSS)
ATTRIBUTABLE TO:
Owners of the Corporation	$ 135,769	10
Non-controlling interests	-	-
	$ 135,769	10
TOTAL COMPREHENSIVE INCOME (LOSS)
ATTRIBUTABLE TO:
Owners of the Corporation	$ 140,252	10
Non-controlling interests	-	-
	$ 140,252	10

(Continued)

TAIWAN COGENERATION CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

	For the Three Months Ended September 30				For the Nine Months Ended September 30
	2025		2024		2025		2024
	Amount	%	Amount	%	Amount	%	Amount	%
EARNINGS PER SHARE
(Note 32)
From continuing and discontinued operations
Basic	$ 0.19		$ 0.35		$ 1.86		$ 1.32
Diluted	$ 0.19		$ 0.34		$ 1.86		$ 1.32
From continuing operations
Basic	$ 0.19		$ 0.35		$ 1.86		$ 1.33
Diluted	$ 0.19		$ 0.34		$ 1.86		$ 1.33

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

(With Deloitte & Touche review report dated November 12, 2025)
(Concluded)

TAIWAN COGENERATION CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In Thousands of New Taiwan Dollars)

	Equity Attributable to Owners of the Corporation
	Ordinary Shares	Capital Surplus	Retained Earnings			Exchange Differences on Translation of the Financial Statements of Foreign Operations	Other Equity Unrealized Gain (Loss) on Financial Assets at Fair Value through Other Comprehensive Income	Gain (Loss) on Hedging Instruments	Non-controlling Interests	Total Equity
			Legal Reserve	Special Reserve	Unappropriated Earnings
BALANCE ON JANUARY 1, 2024	$ 7,302,820	$ 2,621,919	$ 1,828,961	$ 2,435,361	$ 1,269,700	$ (67,906)	$ 65,071	$ (6,354)	$ 138,094	$ 15,587,666
Appropriation of 2023 earnings
Legal reserve	-	-	126,025	-	(126,025)	-	-	-	-	-
Reversal of special reserve	-	-	-	(287,029)	287,029	-	-	-	-	-
Cash dividends	-	-	-	-	(1,409,444)	-	-	-	-	(1,409,444)
	-	-	126,025	(287,029)	(1,248,440)	-	-	-	-	(1,409,444)
Net profit (loss) for the nine months ended September 30, 2024	-	-	-	-	967,003	-	-	-	(2,862)	964,141
Other comprehensive income (loss) for the nine months ended September 30, 2024	-	-	-	-	-	1,884	(21,141)	15,402	-	(3,855)
Total comprehensive income (loss) for the nine months ended September 30, 2024	-	-	-	-	967,003	1,884	(21,141)	15,402	(2,862)	960,286
Change on disposal of interests in subsidiaries (Note 33)	-	-	-	-	-	-	-	-	(135,232)	(135,232)
BALANCE ON SEPTEMBER 30, 2024	$ 7,302,820	$ 2,621,919	$ 1,954,986	$ 2,148,332	$ 988,263	$ (66,022)	$ 43,930	$ 9,048	$ -	$ 15,003,276
BALANCE ON JANUARY 1, 2025	$ 7,302,820	$ 2,621,919	$ 1,954,986	$ 2,148,332	$ 1,388,059	$ (66,159)	$ 22,618	$ 11,229	$ -	$ 15,383,804
Appropriation of 2024 earnings
Legal reserve	-	-	172,693	-	(172,693)	-	-	-	-	-
Special reserve	-	-	-	18,182	(18,182)	-	-	-	-	-
Reversal of special reserve	-	-	-	(360,134)	360,134	-	-	-	-	-
Cash dividends	-	-	-	-	(1,533,592)	-	-	-	-	(1,533,592)
	-	-	172,693	(341,952)	(1,364,333)	-	-	-	-	(1,533,592)
Changes in capital surplus from investments in associates and for using the equity method (Notes 4 and 15)	-	163,509	-	-	-	-	-	-	-	163,509
Net profit for the nine months ended September 30, 2025	-	-	-	-	1,360,710	-	-	-	-	1,360,710
Other comprehensive loss for the nine months ended September 30, 2025	-	-	-	-	-	(5,624)	(3,772)	(6,673)	-	(16,069)
Total comprehensive income (loss) for the nine months ended September 30, 2025	-	-	-	-	1,360,710	(5,624)	(3,772)	(6,673)	-	1,344,641
BALANCE ON SEPTEMBER 30, 2025	$ 7,302,820	$ 2,785,428	$ 2,127,679	$ 1,806,380	$ 1,384,436	$ (71,783)	$ 18,846	$ 4,556	$ -	$ 15,358,362

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

(With Deloitte & Touche review report dated November 12, 2025)

TAIWAN COGENERATION CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

	For the Nine Months EndedSeptember 30
	2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
Income before tax from continuing operations	$ 1,455,727	$ 1,012,142
Loss from discontinued operations before tax	-	(8,450)
Income before income tax	1,455,727	1,003,692
Adjustments for:
Depreciation expense	317,544	319,908
Amortization expense	26,972	37,116
Finance costs	81,606	58,865
Interest income	(21,233)	(18,903)
Dividend income	(10,000)	(10,000)
Share of profit of associates accounted for using the equity method	(983,201)	(791,714)
Gain on disposal of investment accounted for using the equity method	-	(586)
(Gain) loss on lease modification	(2)	47
Realized gain on transactions with associates	(24,184)	(24,187)
Net unrealized (gain) loss on foreign currency exchange	(946)	132
Changes in operating assets and liabilities
Contract assets	1,387,291	(1,429,490)
Notes receivable	-	(2,600)
Accounts receivable	2,495	(515,296)
Accounts receivable from related parties	(103,670)	(45,208)
Other receivables	(66,373)	(19,322)
Inventories	20	(2,297)
Prepaid construction costs	(125,321)	-
Other current assets	7,744	(52,508)
Prepaid value-added tax	(18,136)	33,798
Contract liabilities	(227,115)	(91,926)
Accounts payable	(19,605)	25,664
Construction costs payable	79,368	1,468,746
Accounts payable to related parties	182	263
Other payables	33,877	19,040
Provisions	24,265	97,444
Other current liabilities	(1,076)	(1,368)
Net defined benefit liabilities	(1,054)	1,313
Other liabilities	(1,597)	(1,674)
Cash generated from operations	1,813,578	58,949
Interest received	18,718	17,588
Dividends received	1,429,871	982,851
Interest paid	(93,931)	(60,944)
Income tax paid	(103,148)	(130,883)
Net cash generated from operating activities	3,065,088	867,561
		(Continued)

TAIWAN COGENERATION CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

	For the Nine Months EndedSeptember 30
	2025	2024
CASH FLOWS FROM INVESTING ACTIVITIES
Decrease in financial assets at amortized cost	$ 6,796	$ 313,591
Acquisition of associates	(3,819,376)	-
Proceeds from disposal of subsidiaries (Note 33)	-	85,657
Payments for property, plant and equipment (Note 34)	(160,753)	(256,798)
Increase in refundable deposits	(20,808)	(3,541)
Acquisition of intangible assets	(5,005)	(4,484)
Decrease in finance lease receivables	6,986	7,447
Increase in prepayments for equipment	-	(15,057)
Net cash (used in) generated from investing activities	(3,992,160)	126,815
CASH FLOWS FROM FINANCING ACTIVITIES
Decrease in short-term borrowings	-	(20,000)
Increase (decrease) in short-term bills payable	1,400,000	(500,000)
Proceeds from long-term borrowings	4,030,000	800,000
Repayments of long-term borrowings	(96,633)	(115,383)
Increase in guarantee deposits received	35,530	38,615
Repayments of the principal portion of lease liabilities	(40,877)	(41,070)
Repayment of bonds payable	(1,900,000)	-
Dividends paid to owners of the Corporation	(1,533,592)	(1,409,444)
Net cash generated from (used in) financing activities	1,894,428	(1,247,282)
EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCEOF CASH AND CASH EQUIVALENTS HELD IN FOREIGNCURRENCIES	(999)	510
NET INCREASE (DECREASE) IN CASH AND CASHEQUIVALENTS	966,357	(252,396)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THEPERIOD	1,843,366	1,922,822
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	$ 2,809,723	$ 1,670,426

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

(With Deloitte & Touche review report dated November 12, 2025) (Concluded)

TAIWAN COGENERATION CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

GENERAL INFORMATION

Taiwan Cogeneration Corporation (the “Corporation” and its subsidiaries are collectively referred to as, the “Group”) was established by Taiwan Power Company (TPC) and several local companies on May 7, 1992. The Corporation’s shares were traded on the Taipei Exchange from May 8, 2000 to August 24, 2003 before being listed on the Taiwan Stock Exchange on August 25, 2003. The Corporation is engaged in the following businesses:

a. Engineering, planning, design, procurement, installation, construction and financial planning of cogeneration systems; environmental protection and procurement of fuel for cogeneration systems and related businesses;
b. Operation and management of cogeneration plants;
c. Research and development, technical services and consultation services related to cogeneration;
d. Manufacture, assembly, sale, lease, installation, and repair of cogeneration equipment;
e. Investment in cogeneration plants and trading of related equipment;
f. Businesses with respect to power generation other than utility; and
g. Electric equipment installation.

APPROVAL OF CONSOLIDATED FINANCIAL STATEMENTS

The consolidated financial statements were approved by the Corporation’s board of directors on November 12, 2025.

APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

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

Amendments to IAS 21 “Lack of Exchangeability”

The initial application of the Amendments to IAS 21 “Lack of Exchangeability” did not have a material impact on the Group’s accounting policies.

10 -

b. The IFRS Accounting Standards endorsed by the FSC for application starting from 2026

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

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

Contracts referencing nature-dependent electricity are contracts that expose an entity to variability in the underlying amount of electricity because the source of electricity generation depends on uncontrollable natural conditions. Contracts referencing nature-dependent electricity include both contracts to buy or sell nature-dependent electricity and financial instruments that reference such electricity. When the Group enters into contracts to buy nature-dependent electricity, which exposes the Group to the risk that it would be required to buy electricity during a delivery interval in which the Group cannot use the electricity, and the design and operation of the electricity market require any amounts of unused electricity to be sold within a specified time, the amendments stipulate that such sales are not necessarily inconsistent with the contract being held in accordance with the Group's expected usage requirements. The inconsistency will result in the contract being accounted for as financial instruments otherwise. The Group entered into and continues to hold such a contract in accordance with its expected electricity usage requirements, if the Group has bought, and expects to buy, sufficient electricity to offset the sales of any unused electricity in the same market in which it sold the electricity over a reasonable amount of time.

The amendments also stipulate that, if contracts referencing nature-dependent electricity are designated as hedging instruments in hedges of forecast transactions, for such a hedging relationship the Group is permitted to designate as the hedged item a variable nominal amount of forecast electricity transactions that is aligned with the variable amount of nature-dependent electricity expected to be delivered by the generation facility as referenced in the hedging instrument.

For the amendments related to whether contracts referencing nature-dependent electricity are entered into in accordance with expected electricity usage requirements, the Group shall apply retrospectively but is not required to restate prior periods. The effect of initially applying the amendments shall be recognized as an adjustment to the opening balance at the date of initial application. For the amendments related to hedge accounting, the Group shall apply prospectively.

As of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the possible impact of the application of the amendments on the Group's financial position and financial performance and will disclose the relevant impact when the assessment is completed.

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c. The IFRS Accounting Standards in issue but not yet endorsed and issued into effect by the FSC

New, Amended and Revised Standards and Interpretations	Effective Date Announced by IASB (Note 1)
Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture”	To be determined by IASB
IFRS 18 “Presentation and Disclosure in Financial Statements”	January 1, 2027 (Note 2)
IFRS 19 “Subsidiaries without Public Accountability: Disclosures” (including the 2025 amendments to IFRS 19)	January 1, 2027

Note 1: Unless stated otherwise, the above IFRS Accounting Standards are effective for annual reporting periods beginning on or after their respective effective dates.

Note 2: On September 25, 2025, the FSC announced that IFRS 18 will take effect starting from January 1, 2028. Domestic entities could elect to apply IFRS 18 for an earlier period after the endorsement of IFRS 18 by the FSC.

IFRS 18 “Presentation and Disclosure in Financial Statements”

IFRS 18 will supersede IAS 1 “Presentation of Financial Statements”. The main changes comprise:

Items of income and expenses included in the statement of profit or loss shall be classified into the operating, investing, financing, income taxes and discontinued operations categories.
The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing and income taxes and profit or loss.
Provides guidance to enhance the requirements of aggregation and disaggregation: The Group shall identify the assets, liabilities, equity, income, expenses and cash flows that arise from individual transactions or other events and shall classify and aggregate them into groups based on shared characteristics, so as to result in the presentation in the primary financial statements of line items that have at least one similar characteristic. The Group shall disaggregate items with dissimilar characteristics in the primary financial statements and in the notes. The Group labels items as “other” only if it cannot find a more informative label.
Disclosures on Management-defined Performance Measures (MPMs): When in public communications outside financial statements and communicating to users of financial statements management’s view of an aspect of the financial performance of the Group as a whole, the Group shall disclose related information about its MPMs in a single note to the financial statements, including the description of such measures, calculations, reconciliations to the subtotal or total specified by IFRS Accounting Standards and the income tax and non-controlling interests effects of related reconciliation items.

Except for the above impact, as of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the other impacts of the above amended standards and interpretations on the Group’s financial position and financial performance and will disclose the relevant impact when the assessment is completed.

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4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

a. Statement of compliance

These interim consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34 "Interim Financial Reporting" as endorsed and issued into effect by the FSC. Disclosure information included in these interim consolidated financial statements is less than the disclosure information required in a complete set of annual consolidated financial statements.

b. Basis of preparation

The consolidated financial statements have been prepared on the historical cost basis except for financial instruments which are measured at fair value and net defined benefit liabilities which are measured at the present value of the defined benefit obligation less the fair value of plan assets.

The fair value measurements, which are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and based on the significance of the inputs to the fair value measurement in its entirety, are described as follows:

1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;
2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for an asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and
3) Level 3 inputs are unobservable inputs for an asset or liability.

c. Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Corporation and the entities controlled by the Corporation (i.e., its subsidiaries).

Income and expenses of subsidiaries acquired or disposed of during the period are included in the consolidated statement of profit or loss and other comprehensive income from the effective dates of acquisitions up to the effective dates of disposals, as appropriate.

When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Corporation.

All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation. Total comprehensive income of subsidiaries is attributed to the owners of the Corporation and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

See Note 14 and Table 4 for detailed information on subsidiaries (including percentages of ownership and main businesses).

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d. Other material accounting policies

Except for the following, please refer to the consolidated financial statements for the year ended December 31, 2024.

1) Carbon fee provision

In accordance with the Regulations Governing the Collection of Carbon Fees and related regulations of the ROC, the carbon fee provision is recognized and measured on the basis of the best estimate of the expenditure required to settle the obligation for the current year and the proportion of actual emissions to the total annual emissions.

2) Investments in associates

When the Group subscribes for additional new shares of an associate at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment differs from the amount of the Group’s proportionate interest in that associate. The Group records such a difference as an adjustment to investments, with the corresponding amount charged or credited to capital surplus - changes in the Group’s share of equity of associates. If the Group’s ownership interest is reduced due to its additional subscription of the new shares of the associate, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate is reclassified to profit or loss on the same basis as would be required if the investee had directly disposed of the related assets or liabilities. When the adjustment should be debited to capital surplus, but the capital surplus recognized from investments accounted for using the equity method is insufficient, the shortage is debited to retained earnings.

3) Retirement benefits

Pension cost for an interim period is calculated on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant plan amendments, settlements, or other significant one-off events.

4) Income tax expense

Income tax expense represents the sum of the tax currently payable and deferred tax. Interim period income taxes are assessed on an annual basis and calculated by applying to an interim period's pre-tax income the tax rate that would be applicable to expected total annual earnings.

MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Group’s accounting policies, management is required to make judgments, estimations, and assumptions on the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates.

When developing material accounting estimates, the Group considers the possible impact of climate change and related government policies and regulations, inflation and interest rate fluctuations and volatility in energy/foreign currency markets on the cash flow projection, growth rates, discount rates, profitability and other relevant material estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.

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a. Fair Trade Act litigation against associates

Since TPC concluded that these associates of the Group violated the Fair Trade Act with concerted action and caused a loss to TPC, TPC filed civil actions to claim compensation for the loss. Refer to Note 40 (d) for the detailed information. The aforementioned civil actions are still pending; results may litigation vary depending on the subsequent development of the cases.

b. Construction contracts

Contract revenue and costs are recognized by reference to the stage of completion of each contract. The stage of completion of a contract is measured based on the proportion of contract costs incurred for work performed to date to the estimated total contract costs. Incentives and penalties stipulated in the contract are considered as variable consideration and should be included in the contract revenue only when it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved.

The estimated total contract costs and contractual items are assessed and determined by management, based on the nature of the work, expected sub-contracting charges, construction periods, processes, methods, etc., for each construction contract. Changes in these estimates might affect the calculation of the percentage of completion and related profit and loss from the construction contracts.

CASH AND CASH EQUIVALENTS

	September 30, 2025	December 31, 2024	September 30, 2024
Cash on hand	$ 3,723	$ 3,603	$ 3,553
Checking accounts and demand deposits	1,266,791	1,839,763	1,507,663
Cash equivalents
Time deposits	1,539,209	-	159,210
	$ 2,809,723	$ 1,843,366	$ 1,670,426

The market interest rates of cash in bank at the end of the reporting periods were as follows:

	September 30, 2025	December 31, 2024	September 30, 2024
Demand deposits	0.00%-4.00%	0.00%-4.25%	0.00%-4.75%
Time deposits	1.64%-1.91%	-	1.52%-1.55%

FINANCIAL ASSETS AT AMORTIZED COST

	September 30, 2025	December 31, 2024	September 30, 2024
Current
Domestic investments
Time deposits with original maturities of more than 3 months	$ 482,945	$ 489,819	$ 436,486
Foreign investments
Philippines treasury bills	321	347	347
	$ 483,266	$ 490,166	$ 436,833
Non-current
Domestic investments
Time deposits with original maturities of more than 3 months	$ 104	$ -	$ -
Restricted bank deposits	6,500	6,500	6,500
	$ 6,604	$ 6,500	$ 6,500

Refer to Note 8 for information relating to credit risk management and impairment assessment of financial assets at amortized cost.

Refer to Note 39 for information on financial assets at amortized cost that are pledged as securities.

The Group’s investment in Philippine treasury bills was as follows:

	September 30, 2025	December 31, 2024	September 30, 2024
Carrying amount	$ 321	$ 347	$ 347
Amount invested (in thousands of PHP)	$ 612	$ 612	$ 612
Effective interest rates	5.750%	5.780%	5.780%
Period of holding	March 10, 2025 through March 4, 2026	March 6, 2024 through February 5, 2025	March 6, 2024 through February 5, 2025

The interest rate ranges for restricted bank deposits and time deposits with original maturities of more than 3 months as of the balance sheet date were as follows:

	September 30, 2025	December 31, 2024	September 30, 2024
Demand deposits	0.705%	0.705%	0.705%
Time deposits	1.525%-4.430%	1.530%-4.000%	1.500%-5.500%

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8. CREDIT RISK MANAGEMENT FOR INVESTMENTS IN DEBT INSTRUMENTS

The debt instruments invested in by the Group are classified as financial assets measured at amortized cost.

	September 30, 2025	December 31, 2024	September 30, 2024
At amortized cost
Gross carrying amount	$ 489,870	$ 496,666	$ 443,333
Less: Allowance for impairment loss	-	-	-
	$ 489,870	$ 496,666	$ 443,333

The Group's policy is to only invest in debt instruments issued by entities with good credit standing. The Group continuously tracks the credit risk changes of its invested debt instruments, reviews significant information and other details about the debtor, and assesses whether the credit risk of the debt instrument investments has increased significantly since their initial recognition.

In assessing the expected credit losses for these investments, the Group takes into account the debtors' historical track record, prevailing market conditions, and forward-looking information to measure the expected credit losses over a 12-month period or for the entire duration of the investment.

As of September 30, 2025, December 31, 2024 and September 30, 2024, the Group determined that there was no need to recognize expected credit losses for the debt instrument investments it holds.

9. NOTES RECEIVABLE AND ACCOUNTS RECEIVABLE

	September 30, 2025	December 31, 2024	September 30, 2024
Notes receivable
At amortized cost
Gross carrying amount	$ -	$ -	$ 2,600
Accounts receivable
At amortized cost
Gross carrying amount	$ 692,468	$ 694,963	$ 1,271,024

The average credit period ranges from 30 to 60 days.

The Group applies the simplified approach prescribed by IFRS 9, providing for expected credit losses over the lifetime of all notes receivable and accounts receivable. These expected credit losses are individually estimated for each customer. The estimation takes into consideration the customers' past default history and current financial situation, the economic conditions of the industry they operate in, along with the GDP forecasts and the industry outlook.

The Group did not recognize an allowance for impairment loss against all of the notes receivable and the accounts receivable because individually assessed lifetime ECLs indicated that all of the notes receivable and the accounts receivable are collectible.

The aging analysis of notes receivable based on the invoice date was as follows:

	September 30, 2025	December 31, 2024	September 30, 2024
Up to 60 days	$ -	$ -	$ 2,600

The aging analysis of accounts receivable based on the invoice date was as follows:

	September 30, 2025	December 31, 2024	September 30, 2024
Up to 60 days	$ 692,443	$ 694,963	$ 1,271,024
61-90 days	25	-	-
91-120 days	-	-	-
121-180 days	-	-	-
More than 180 days	-	-	-
	$ 692,468	$ 694,963	$ 1,271,024

10. FINANCE LEASE RECEIVABLES

	September 30, 2025	December 31, 2024	September 30, 2024
Undiscounted lease payments
Year 1	$ 9,270	$ 852	$ 3,350
Year 2	3,090	-	-
Year 3	-	-	-
Year 4	-	-	-
Year 5	-	-	-
	12,360	852	3,350
Less: Unearned finance income	(142)	-	(4)
Lease payments receivable	12,218	852	3,346
Net investment in leases presented as finance lease receivables	$ 12,218	$ 852	$ 3,346
Finance lease receivables - current	$ 9,135	$ 852	$ 3,346
Finance lease receivables - non-current	$ 3,083	$ -	$ -

The Group subleased its leasehold office premises to associates, and the lease term was 2-5 years, with fixed annual lease payments referenced in the head lease agreement. As the Group subleased the leasehold office premises for all of the remaining lease terms of the head lease, the sublease contracts were classified as finance leases. The interest rates inherent in leases were fixed at the contract dates for the entire term of the lease. The implicit interest rates of the contracts range from approximately 0.98% to 1.86%.

The Group renewed the office lease, which was approved by the Group's board of directors on February 17, 2025. The Group subleased its leasehold office premises to associates, and the lease term was 2 years, with fixed annual lease payments referenced in the head lease agreement.

The Group measured the loss allowance for finance lease receivables at an amount equal to lifetime ECLs. As of the balance sheet date, no finance lease receivable was past due. The Group did not recognize a loss allowance for finance lease receivables after taking into consideration the historical default experience and the future prospects of the industries in which the lessees operate, together with the value of collaterals held.

11. INVENTORIES

	September 30, 2025	December 31, 2024	September 30, 2024
Raw materials	$ 8,090	$ 8,110	$ 10,248

12. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

Investments in Equity Instruments at FVTOCI

	September 30, 2025	December 31, 2024	September 30, 2024
Non-current
Domestic investments
Unlisted shares
Kaohsiung Arena Development Corporation (KADC)	$ 248,600	$ 246,600	$ 245,400
Synergy Co., Ltd. (Synergy)	21,957	21,957	22,454
	$ 270,557	$ 268,557	$ 267,854

The investments in KADC and Synergy are held for medium to long-term strategic purposes. Accordingly, the management elected to designate these investments in equity instruments at FVTOCI as they believe that recognizing short-term fluctuations in these investments' fair value in profit or loss would not be consistent with the Group's strategy of holding these investments for long-term purposes.

Refer to Note 37 for fair value information relating to financial assets at FVTOCI.

13. DISCONTINUED OPERATIONS

On May 9, 2024, the Corporation held a meeting and approved the proposed disposal of 51% of equity of Yi Yuan Corporation (YYC). The disposal of YYC and its subsidiary Chingshuei Geothermal Power Corporation (CGPC) was signed on May 14, 2024. The disposal was completed on May 22, 2024, and control of the operations was passed to the acquirer.

The profit and loss details and cash flow information of discontinued operations were as follows:

	January 1, 2024 through May 22, 2024
Operating revenue	$ 18,187
Operating costs	(23,355)
Loss from operations	(5,168)
Operating expenses	(1,109)
Loss from operations	(6,277)
Interest income	30
Other income	26
Other gains and losses	(6)
Finance costs	(2,809)
Loss before income tax	(9,036)
Income tax benefit	1,250
Net loss for the year	(7,786)
Gain on disposal (Note 33)	586
Loss from discontinued operations	$ (7,200)
Loss from discontinued operations attributable to:
Owners of the Corporation	$ (4,338)
Non-controlling interests	(2,862)
	$ (7,200)
Net cash inflow (outflow) from:
Operating activities	$ 3,147
Investing activities	-
Financing activities	(18,933)
Net cash outflow	$ (15,786)

The carrying amounts of the assets and liabilities of YYC (including CGPC) at the date of disposal were disclosed in Note 33.

14. SUBSIDIARIES

Subsidiaries Included in the Consolidated Financial Statements

Name of Investor	Name of Subsidiary	Nature of Activities	Percentage of Ownership			Remark
			September 30, 2025	December 31, 2024	September 30, 2024
The Corporation	Star Energy Corporation (SEC)	Undertaking and installing of power engineering projects	100	100	100
The Corporation	Taiwan Cogeneration International Corporation (TCIC)	Investment in foreign countries and international trading	100	100	100	Note
The Corporation	TCC Green Energy Corporation (TGE)	Investment in green power plant	100	100	100
The Corporation	Miaoli Wind Co., Ltd. (MWC)	Power generation	100	100	100
The Corporation	Hamaguri Co., Ltd. (HML)	Power generation	100	100	100
TGE	Shin Kuang Electric Energy Ltd. (SKE)	Power generation	100	100	100
SEC	Star Wind Corporation (SWC)	Power generation	100	100	100
SEC	Star Solar Corporation (SSC)	Power generation	100	100	100

Note: TCIC established a branch in the Philippines mainly for the expansion of the local engineering business.

Refer to Table 4 for the nature of activities, principal places of business and countries of incorporation of the subsidiaries.

15. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

	September 30, 2025	December 31, 2024	September 30, 2024
Investments in associates
Material associates
Ta-Yuan Cogeneration Company (TYC)	$ 587,750	$ 599,036	$ 597,396
Sun Ba Power Corporation (Sun Ba)	6,693,065	6,556,837	6,421,288
Star Energy Power Corporation (SEPC)	2,450,500	2,415,575	2,383,466
Star Buck Power Corporation (SBPC)	2,329,129	2,403,201	2,337,167
Kuo Kuang Power Company Ltd. (KKPC)	5,588,611	1,795,179	2,050,662
	17,649,055	13,769,828	13,789,979
Associates that are not individually material	47,370	51,382	51,468
	$ 17,696,425	$ 13,821,210	$ 13,841,447

The share of profit or loss of associates accounted for using the equity method was as follows:

	For the Three Months Ended September 30		For the Nine Months Ended September 30
	2025	2024	2025	2024
Sun Ba	$ 131,171	$ 69,065	$ 601,863	$ 390,938
SEPC	(11,114)	39,520	152,276	141,219
KKPC	(81,702)	1,601	108,909	108,413
TYC	14,361	25,402	65,895	60,799
SBPC	50,915	52,070	54,591	90,508
Associates that are not individually material	(129)	(145)	(333)	(163)
	$ 103,502	$ 187,513	$ 983,201	$ 791,714

a. Material associates

	Proportion of Ownership and Voting Rights
	September 30, 2025	December 31, 2024	September 30, 2024
TYC	29.31%	29.31%	29.31%
Sun Ba	43.00%	43.00%	43.00%
SEPC	40.50%	40.50%	40.50%
SBPC	41.27%	41.27%	41.27%
KKPC	45.83%	35.00%	35.00%

Refer to Table 4 for the nature of activities, principal places of business and countries of incorporation of the associates.

The market value of the investment in TYC, which was based on its closing price at the balance sheet date, was as follows:

Name of Associate	September 30, 2025	December 31, 2024	September 30, 2024
TYC	$ 1,895,609	$ 1,718,232	$ 1,773,774

The summarized financial information below represents amounts shown in the associates' financial statements prepared in accordance with IFRS Accounting Standards adjusted by the Group for equity accounting purposes.

TYC

	September 30, 2025	December 31, 2024	September 30, 2024
Current assets	$ 641,030	$ 931,619	$ 775,541
Non-current assets	4,340,354	4,002,787	3,942,801
Current liabilities	(928,332)	(1,215,850)	(1,454,593)
Non-current liabilities	(2,029,700)	(1,655,820)	(1,206,314)
Equity	$ 2,023,352	$ 2,062,736	$ 2,057,435
Proportion of the Group’s ownership	29.31%	29.31%	29.31%
Equity attributable to the Group	$ 593,059	$ 604,604	$ 603,049
Unrealized gain with associates	(5,309)	(5,568)	(5,653)
Carrying amount	$ 587,750	$ 599,036	$ 597,396
	For the Three Months Ended September 30		For the Nine Months Ended September 30
---	---	---	---
	2025	2024	2025
Operating revenue	$ 692,333	$ 678,297	$ 1,907,160
Net profit for the period	$ 48,995	$ 86,663	$ 224,816
Other comprehensive loss	(1,219)	(51,885)	(19,690)
Total comprehensive income for the period	$ 47,776	$ 34,778	$ 205,126
Dividends received from TYC	$ 71,668	$ 75,251	$ 71,668

Sun Ba

	September 30, 2025	December 31, 2024	September 30, 2024
Current assets	$ 10,925,702	$ 7,196,789	$ 8,019,054
Non-current assets	32,645,742	32,325,862	30,866,692
Current liabilities	(7,125,297)	(8,978,393)	(8,783,605)
Non-current liabilities	(20,637,477)	(15,039,749)	(14,908,650)
Equity	$ 15,808,670	$ 15,504,509	$ 15,193,491
Proportion of the Group’s ownership	43.00%	43.00%	43.00%
Equity attributable to the Group	$ 6,797,729	$ 6,666,937	$ 6,533,201
Unrealized gain with associates	(106,751)	(112,187)	(114,000)
Goodwill	2,087	2,087	2,087
Carrying amount	$ 6,693,065	$ 6,556,837	$ 6,421,288
	For the Three Months Ended September 30		For the Nine Months Ended September 30
	2025	2024	2025
Operating revenue	$ 9,515,292	$ 7,286,643	$ 28,059,515
Net profit for the period	$ 305,049	$ 160,617	$ 1,399,681
Other comprehensive income (loss)	4,419	(12,246)	(15,519)
Total comprehensive income for the period	$ 309,468	$ 148,371	$ 1,384,162
Dividends received from Sun Ba	$ 464,400	$ 531,480	$ 464,400
SEPC
	September 30, 2025	December 31, 2024	September 30, 2024
Current assets	$ 2,698,974	$ 3,622,117	$ 3,570,321
Non-current assets	4,608,105	4,070,466	4,205,441
Current liabilities	(909,951)	(1,313,470)	(1,458,007)
Non-current liabilities	(227,486)	(285,460)	(299,967)
Equity	$ 6,169,642	$ 6,093,653	$ 6,017,788
Proportion of the Group’s ownership	40.50%	40.50%	40.50%
Equity attributable to the Group	$ 2,498,705	$ 2,467,929	$ 2,437,204
Unrealized gain with associates	(48,205)	(52,354)	(53,738)
Carrying amount	$ 2,450,500	$ 2,415,575	$ 2,383,466

	For the Three Months EndedSeptember 30		For the Nine Months EndedSeptember 30
	2025	2024	2025	2024
Operating revenue	$ 1,530,554	$ 2,397,356	$ 5,907,779	$ 6,616,494
Net (loss) profit for the period	$ (27,445)	$ 97,582	$ 375,988	$ 348,689
Other comprehensive income	-	-	-	-
Total comprehensive (loss)income for the period	$ (27,445)	$ 97,582	$ 375,988	$ 348,689
Dividends received from SEPC	$ 121,500	$ 182,250	$ 121,500	$ 182,250
SBPC
		September 30,2025	December 31,2024	September 30,2024
Current assets		$ 2,373,406	$ 2,450,604	$ 2,605,154
Non-current assets		6,700,881	7,184,378	7,401,550
Current liabilities		(1,396,292)	(1,336,055)	(1,862,640)
Non-current liabilities		(1,625,987)	(2,032,688)	(2,026,236)
Equity		$ 6,052,008	$ 6,266,239	$ 6,117,828
Proportion of the Group’s ownership		41.27%	41.27%	41.27%
Equity attributable to the Group		$ 2,497,829	$ 2,586,247	$ 2,524,996
Unrealized gain with associates		(168,700)	(183,046)	(187,829)
Carrying amount		$ 2,329,129	$ 2,403,201	$ 2,337,167
	For the Three Months EndedSeptember 30		For the Nine Months EndedSeptember 30
	2025	2024	2025	2024
Operating revenue	$ 2,688,585	$ 2,628,605	$ 6,216,791	$ 7,200,429
Net profit for the period	$ 123,363	$ 126,159	$ 132,269	$ 219,292
Other comprehensive income	-	-	-	-
Total comprehensive incomefor the period	$ 123,363	$ 126,159	$ 132,269	$ 219,292
Dividends received from SEPC	$ 143,010	$ 183,870	$ 143,010	$ 183,870

KKPC

	September 30, 2025	December 31, 2024	September 30, 2024
Current assets	$ 8,663,513	$ 3,957,849	$ 3,322,150
Non-current assets	5,989,466	3,018,554	3,225,558
Current liabilities	(2,385,777)	(1,747,989)	(592,575)
Non-current liabilities	(75,332)	(161,820)	(173,348)
Equity	$ 12,191,870	$ 5,066,594	$ 5,781,785
Proportion of the Group’s ownership	45.83%	35.00%	35.00%
Equity attributable to the Group	$ 5,582,239	$ 1,773,308	$ 2,023,625
Unrealized gain with associates	(18)	(9)	(6)
Goodwill	19,304	19,304	19,304
Investment premium	(12,914)	2,576	7,739
Carrying amount	$ 5,588,611	$ 1,795,179	$ 2,050,662
	For the Three Months Ended September 30		For the Nine Months Ended September 30
---	---	---	---
	2025	2024	2025
Operating revenue	$ 1,137,847	$ 2,092,779	$ 5,894,078
Net (loss) profit for the period	$ (156,391)	$ 19,327	$ 417,716
Other comprehensive income	-	-	-
Total comprehensive (loss) income for the period	$ (156,391)	$ 19,327	$ 417,716
Dividends received from KKPC	$ 298,353	$ -	$ 619,293

On July 25, 2025, the Corporation participated in the cash capital increase of KKPC by investing $3,819,376 thousand. As the subscription to the cash capital increase of the associate was not made in proportion to its existing shareholding, the ownership interest increased from 35% to 45.83%, resulting in a change in the equity of the investment held by the Corporation. Accordingly, capital surplus should be adjusted upward by $163,509 thousand.

On July 10, 2014, the Fair Trade Commission (FTC) issued an amended fine of $489 million, $392 million, $100 million and $371 million against Sun Ba, SEPC, SBPC, and KKPC, respectively (“Third FTC Ruling”). These corporations appealed the Third FTC Ruling to the Petitions and Appeals Committee of the Executive Yuan, requesting revocation of the amended fine. In December 2014, The Petitions and Appeals Committee of the Executive Yuan issued a letter to notified these companies that the appeal proceedings would be postponed, pending a ruling by the Supreme Administrative Court. These companies paid the full amounts of the fines in full in advance in accordance with the Administrative Appeal Act and recognized them as other receivables. Between June and August 2022, The Supreme Administrative Court, annulled the second retrial judgments and dismissed the initial lawsuit filed by IPPs. Considering the finality of the Supreme Administrative Court’s decision, these companies reclassified the fines from other receivables to impairment loss. However following this final judgement, the Petitions and Appeals Committee resumed the previously the suspended appeal process. The Petitions and Appeals Committee dismissed the petitions filed by IPPs on April 14, 2023. Subsequently, IPPs filed an administrative lawsuit seeking for relief, which is currently under hearing

by the Taipei High Administrative Court. KKPC, Sun Ba, SBPC and SEPC subsequently reached settlement agreements with the FTC at the Taipei High Administrative Court on June 2 and 3, 2025, respectively, under which the penalty amounts were revised to $247 million, $326 million, $67 million and $261 million. In addition, on July 23, 2025, the FTC refunded the overpaid fines to KKPC, Sun Ba, SBPC and SEPC in the amount of $124,000 thousand, $163,000 thousand, $33,333 thousand and to $130,667 thousand, respectively. The aforementioned investee companies recognized gains from impairment reversals in the first half of 2025.

The Group is the single largest shareholder of Sun Ba, SEPC and SBPC holding ownership interests of 43%, 40.5%, and 41.27% respectively. However, according to the articles of incorporation of the investees, certain material events of the investees shall be approved by the vote of a certain number of members of the board of directors; therefore, the Group cannot direct the relevant activities of the investee and has no control over them. Management of the Group considered the Group exercises significant influence over the investees and classified them as associates.

b. Aggregate information of associates that are not individually material

	For the Three Months Ended September 30		For the Nine Months Ended September 30
	2025	2024	2025	2024
The Group’s share of:
Net loss for the period	$(129)	$(145)	$(333)	$(163)
Total comprehensive loss for the period	$(129)	$(145)	$(333)	$(163)

The amounts of the share of profit or loss and other comprehensive income of the investments in associates accounted for using the equity method for the nine months ended September 30, 2025 and 2024 were based on the associates' financial statements reviewed by independent auditors for the same periods.

PROPERTY, PLANT AND EQUIPMENT

	Land	Buildings	Machinery and Equipment	Transportation Equipment	Other Equipment	Leasehold Improvements	Property under Construction	Total
Cost
Balance on January 1, 2025	$ 277,716	$ 1,385,057	$ 6,977,566	$ -	$ 226,230	$ 41,163	$ 180,149	$ 9,087,881
Additions	-	-	20,354	-	7,902	-	43,686	71,942
Reclassifications (None)	-	-	14,955	-	-	-	-	14,955
Balance on September 30, 2025	277,716	1,385,057	7,012,873	-	234,132	41,163	223,835	9,174,778
Accumulated depreciation
Balance on January 1, 2025	-	139,424	4,701,493	-	123,379	40,829	-	5,003,125
Depreciation expense	-	43,910	200,809	-	29,073	259	-	274,033
Balance on September 30, 2025	-	183,334	4,902,302	-	152,454	41,068	-	5,279,158
Carrying amount on September 30, 2025	$ 277,716	$ 1,201,723	$ 2,110,573	$ -	$ 81,678	$ 95	$ 223,835	$ 3,895,620
Carrying amount on December 31, 2024 and January 1, 2025	$ 277,716	$ 1,245,633	$ 2,276,073	$ -	$ 102,851	$ 334	$ 180,149	$ 4,082,756
Cost
Balance on January 1, 2024	$ 277,716	$ 1,385,474	$ 6,977,566	$ 793	$ 234,510	$ 40,643	$ 17,304	$ 8,934,006
Additions	-	-	-	-	330	520	50,458	51,308
Disposals	-	-	-	-	(7,942)	-	-	(7,942)
Disposal of subsidiary (Note 33)	-	(417)	-	(793)	(1,214)	-	-	(2,424)
Balance on September 30, 2024	277,716	1,385,057	6,977,566	-	225,684	41,163	67,762	8,974,948
Accumulated depreciation
Balance on January 1, 2024	-	80,914	4,437,199	142	91,940	36,846	-	4,647,041
Depreciation expense	-	43,918	198,478	57	30,271	3,516	-	276,220
Disposals	-	-	-	-	(7,942)	-	-	(7,942)
Disposal of subsidiary (Note 33)	-	(44)	-	(179)	(677)	-	-	(900)
Balance on September 30, 2024	-	124,788	4,635,677	-	113,592	40,362	-	4,914,419
Carrying amount on September 30, 2024	$ 277,716	$ 1,260,269	$ 2,341,889	$ -	$ 112,092	$ 801	$ 67,762	$ 4,060,529

Note: The amount was reclassified from prepayments for equipment.

For the nine months ended September 30, 2025 and 2024, no impairment loss was recognized.

Property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives as follows:

Buildings
Office building	50 years
Plant and its attached facilities	15-25 years
Machinery and equipment
Main power generation equipment	20-30 years
Others	3-15 years
Transportation equipment	5-10 years
Other equipment	2-8 years
Lease improvements	2-5 years

Refer to Note 30 for information on capitalized interest for the three months and for the nine months ended September 30, 2025 and 2024.

Refer to Note 39 for the carrying amount of property plant and equipment mortgaged as collateral for bank borrowings of the Group.

17. LEASE ARRANGEMENTS

a. Right-of-use assets

	Land	Buildings	Transportation Equipment	Other Equipment	Total
Cost
Balance on January 1, 2025	$ 376,974	$ 190,573	$ 27,608	$ 8,699	$ 603,854
Additions	8,444	33,963	11,529	-	53,936
Disposals	-	(75,787)	(6,055)	-	(81,842)
Balance on September 30, 2025	385,418	148,749	33,082	8,699	575,948
Accumulated depreciation and impairment loss
Balance on January 1, 2025	87,564	107,070	16,017	1,740	212,391
Depreciation expense	11,712	25,057	7,089	326	44,184
Disposals	-	(75,426)	(5,901)	-	(81,327)
Balance on September 30, 2025	99,276	56,701	17,205	2,066	175,248
Carrying amount on September 30, 2025	$ 286,142	$ 92,048	$ 15,877	$ 6,633	$ 400,700
Carrying amount on December 31, 2024 and January 1, 2025	$ 289,410	$ 83,503	$ 11,591	$ 6,959	$ 391,463
Cost
Balance on January 1, 2024	$ 377,320	$ 207,471	$ 29,297	$ 9,424	$ 623,512
Additions	257	331	2,627	-	3,215
Disposals	-	(218)	(4,197)	(725)	(5,140)
Balance on September 30, 2024	377,577	207,584	27,727	8,699	621,587
					(Continued)

	Land	Buildings	Transportation Equipment	Other Equipment	Total
Accumulated depreciation and impairment loss
Balance on January 1, 2024	$ 72,137	$ 117,136	$ 11,999	$ 2,006	$ 203,278
Depreciation expense	12,270	24,234	7,587	350	44,441
Disposals	-	(150)	(4,051)	(725)	(4,926)
Balance on September 30, 2024	84,407	141,220	15,535	1,631	242,793
Carrying amount on September 30, 2024	$ 293,170	$ 66,364	$ 12,192	$ 7,068	$ 378,794

b. Lease liabilities

	September 30, 2025	December 31, 2024	September 30, 2024
Carrying amount
Current	$ 58,292	$ 28,659	$ 49,284
Non-current	$ 422,504	$ 427,606	$ 395,271

As of September 30, 2025, December 31, 2024 and September 30, 2024, the range of discount rates for lease liabilities was 0.98%-2.83%.

c. Material lease activities and terms

The rental payments for some leases of the solar power generation equipment are calculated at an agreed ratio of sales of electricity generated pursuant to the power purchase agreements the Group entered into with TPC.

Refer to Note 19 for the information on the Group’s acquisition of the rights to superficies from the Yilan County Government.

In 2019, HML leased the land from the landlords in Fangyuan Township, Changhua County for the fishery and electricity symbiosis development project. The period covered by the agreements include the development and construction period and 20 years from the date of the commence of commercial operations. HML shall make a priority request for renewal of the agreements six months before the expiration of the lease if it obtains permission to continue operations. The lease agreements are renewable for no more than 5 years each time and within the limit of two times.

d. Subleases

Refer to Note 10 for the information on the Group’s sublease transactions.

e. Other lease information

	For the Three Months Ended September 30		For the Nine Months Ended September 30
	2025	2024	2025	2024
Expenses relating to short-term leases	$ 2,156	$ 2,400	$ 7,461	$ 7,168
Expenses relating to low-value asset leases	$ 250	$ 207	$ 928	$ 609
Expenses relating to variable lease payments not included in the measurement of lease liabilities	$ 1,668	$ 1,497	$ 4,221	$ 3,821
Total cash (outflow) for leases			$ (63,844)	$ (58,074)

The Group's leases include certain buildings and transportation equipment, which qualify as short-term leases and certain other equipment, which qualifies as low-value asset leases. The Group has elected to apply the recognition exemption and thus, did not recognize right-of-use assets and lease liabilities for these leases.

18. GOODWILL

	For the Nine Months Ended September 30
	2025	2024
Cost
Balance on January 1 and September 30	$ 141,014	$ 141,014
Accumulated impairment losses
Balance on January 1 and September 30	(120,700)	(44,644)
Carrying amount on September 30	$ 20,314	$ 96,370

The Group's goodwill is related to the expected benefits of the increase in sales of electricity. Since the goodwill relates solely to a single cash generating unit, the goodwill is assessed for impairment by calculating the recoverable amount and the carrying amount of its net assets.

19. INTANGIBLE ASSETS

	September 30, 2025	December 31, 2024	September 30, 2024
Computer software	$ 8,055	$ 9,881	$ 12,015
Business rights	266,567	285,914	292,364
	$ 274,622	$ 295,795	$ 304,379

a. Movements in intangible assets were as follows:

	Service Concession Arrangement		Computer Software	Business Rights	Others	Total
	Operating Assets	Right-of-use Assets
Cost
Balance on January 1, 2025	$ -	$ -	$ 28,289	$ 402,000	$ 12,000	$ 442,289
Additions	-	-	5,005	-	-	5,005
Disposals	-	-	(4,384)	-	-	(4,384)
Balance on September 30, 2025	-	-	28,910	402,000	12,000	442,910
Accumulated amortization and impairment loss
Balance on January 1, 2025	-	-	18,408	116,086	12,000	146,494
Amortization expense	-	-	6,831	19,347	-	26,178
Disposals	-	-	(4,384)	-	-	(4,384)
Balance on September 30, 2025	-	-	20,855	135,433	12,000	168,288
Carrying amount on September 30, 2025	$ -	$ -	$ 8,055	$ 266,567	$ -	$ 274,622
Carrying amount on December 31, 2024 and January 1, 2025	$ -	$ -	$ 9,881	$ 285,914	$ -	$ 295,795
Cost
Balance on January 1, 2024	$ 633,253	$ 2,710	$ 25,585	$ 402,000	$ 12,000	$ 1,075,548
Additions	1,122	-	3,362	-	-	4,484
Disposals	-	-	(500)	-	-	(500)
Disposal of subsidiary (Note 33)	(634,375)	(2,710)	(158)	-	-	(637,243)
Balance on September 30, 2024	-	-	28,289	402,000	12,000	442,289
Accumulated amortization and impairment loss
Balance on January 1, 2024	80,733	696	11,992	90,289	12,000	195,710
Amortization expense	11,981	54	4,940	19,347	-	36,322
Disposals	-	-	(500)	-	-	(500)
Disposal of subsidiary (Note 33)	(92,714)	(750)	(158)	-	-	(93,622)
Balance on September 30, 2024	-	-	16,274	109,636	12,000	137,910
Carrying amount on September 30, 2024	$ -	$ -	$ 12,015	$ 292,364	$ -	$ 304,379

Intangible assets are amortized on a straight-line basis over their estimated useful lives as follows:

Service concession arrangement
- Main power generation equipment 20 years
- Transmission pipelines and other facilities 10-20 years
- Others 5-20 years
- Computer software 1-6 years
- Business rights 15 years

b. Service concession arrangement

YYC signed the investment agreement "Yilan Chingshuei Geothermal Power Generation Build, Reconstruction, Operation, and Transfer" (referred to also as "Chingshuei Geothermal Contract") with the Yilan county government in July 2017 for a service concession which will be operated by CGPC. YYC established CGPC to undertake the operations for a period of 20 years starting from the commencement date of commercial operations of the power generating unit.

The operating assets refer to the public infrastructure constructed and operated by CGPC.

The right-of-use asset was obtained by YYC from the Yilan county government under the Chingshuei Geothermal Contract to build and operate the power plant site. The rental rate during the construction period was set at 1% of the announced land value, and the rental rate during the period of operation was set at 3% of the announced land value.

The Corporation sold the equity of YYC (including CGPC) on May 22, 2024, and lost control of the service concession. Please refer to Note 33.

c. Business rights

Business rights refer to the licenses to generate electricity from the Zhunan and Houlong wind farms in Miaoli County acquired from the Ministry of Economic Affairs through the business combination with MWC, in accordance with the Electricity Act. Amortization of the aforementioned licenses is recognized on a straight-line basis until February 2036.

d. Other intangible assets

Other intangible assets refer to Grade A comprehensive construction registration certificate of SEC, which is deemed to have an indefinite useful life and not amortized because the certificate can be reviewed and renewed at a fraction of the cost every 5 years and is expected to generate sustainable net cash inflow, but is rather tested for impairment at least once a year and assessed at each balance sheet date to determine whether events and circumstances continue to support the assessment of its indefinite useful life.

20. OTHER ASSETS

	September 30, 2025	December 31, 2024	September 30, 2024
Other non-current assets
Prepaid power lines usage expenses	$ 17,629	$ 18,423	$ 18,686

In order to operate the solar power plant, the Group signed an agreement with a company for the "Installation of Renewable Energy Generation Equipment (Non-user) for Connection of Power Line to User", and the Group should apportion the electricity project expenses (power lines usage expenses) in accordance with "Calculation of Apportionment Expenses for Renewable Energy Enhancement Projects on Power Grid".

21. BORROWINGS

a. Short-term borrowings

	September 30, 2025	December 31, 2024	September 30, 2024
Unsecured borrowings
Bank loans - unsecured	$ -	$ -	$ 35,000

The ranges of interest rates on short-term borrowings at the end of the reporting were as follows:

	September 30, 2025	December 31, 2024	September 30, 2024
Bank loans - unsecured	-	-	2.22%

b. Short-term bills payable

	September 30, 2025	December 31, 2024	September 30, 2024
Commercial papers	$ 1,900,000	$ 500,000	$ 500,000
Less: Unamortized discounts on bills payable	(3,756)	(236)	(246)
	$ 1,896,244	$ 499,764	$ 499,754

On August 13, 2025, the Group signed a revolving and non-guaranteed commercial paper underwriting agreement with a bills finance company, with maturity on November 1, 2025, and a total underwriting amount of $1,900 million.

On March 18, 2022, the Group signed a revolving and non-guaranteed commercial paper underwriting contract with a bank. The Group could issue a non-guaranteed commercial paper (up to 90 days) on a revolving basis within four years effective from March 23, 2022. The total underwriting amount is $500 million. On March 21, 2025, the Group terminated this agreement early.

On August 12, 2021, the Group signed a revolving and non-guaranteed commercial paper underwriting agreement with a bills finance company. The Group could issue a non-guaranteed commercial paper (up to 90 days) on a revolving basis within four years effective from August 16, 2021. The total underwriting amount is $500 million. On August 15, 2024, the Group terminated this agreement early.

The ranges of interest rates on commercial paper payable were as follows:

	September 30, 2025	December 31, 2024	September 30, 2024
Commercial papers	1.62%	0.70%	0.70%

c. Long-term borrowings

	September 30, 2025	December 31, 2024	September 30, 2024
Pledged or mortgaged borrowings
Repayable in semi-annual installments from August 2026 to February 2040	$ 800,000	$ 800,000	$ 800,000
Repayable in semi-annual installments from July 2022 to May 2031	239,440	248,200	256,960
Repayable in semi-annual installments from August 2021 to February 2032	233,240	268,520	268,520
Repayable in quarterly installments from December 2021 to September 2034	124,615	135,000	138,461
Repayable in semi-annual installments from February 2020 to February 2026	120,960	132,300	132,300
Repayable in semi-annual installments from November 2021 to May 2031	102,500	106,250	110,000
Repayable in semi-annual installments from August 2021 to May 2031	71,340	73,950	76,560
Repayable in semi-annual installments from November 2022 to May 2031	59,860	62,050	64,240
(Continued)

33 -

	September 30, 2025	December 31, 2024	September 30, 2024
Repayable in quarterly installments from September 2021 to September 2034	$ 27,347	$ 29,625	$ 30,385
Repayable in semi-annual installments from August 2022 to February 2032	26,000	30,000	30,000
Repayable in semi-annual installments from May 2021 to May 2031	18,860	19,550	20,240
Unsecured borrowings
Repayable in monthly installments from January 2021 to December 2025	69,700	74,800	76,500
Repayable in quarterly installments from April 2020 to March 2026	48,202	52,129	53,438
Repayable in quarterly installments from October 2019 to March 2026	39,664	43,081	44,220
Repayable in quarterly installments from October 2018 to October 2025	30,826	33,732	34,701
Revolving unsecured borrowings
Revolving until May 2027	2,230,000	-	-
Revolving until May 2027	500,000	-	-
Revolving until February 2028	500,000	-	-
Revolving until April 2026	500,000	-	-
Revolving until November 2026	300,000	-	-
	6,042,554	2,109,187	2,136,525
Less: Current portion	(933,517)	(221,829)	(123,971)
	$ 5,109,037	$ 1,887,358	$ 2,012,554
			(Concluded)

The ranges of interest rates on long-term borrowings as of the balance sheet date were as follows:

	September 30, 2025	December 31, 2024	September 30, 2024
Pledged or mortgaged borrowings	2.17%-2.80%	2.22%-2.83%	2.22%-3.25%
Unsecured borrowings	1.80%-2.23%	1.80%-2.23%	1.80%-2.23%
Revolving unsecured borrowings	1.80%-1.93%	-	-

22. BONDS PAYABLE

	September 30, 2025	December 31, 2024	September 30, 2024
Domestic unsecured bond	$ 600,000	$ 2,500,000	$ 2,500,000
Less: Current portion	-	(1,899,655)	(1,899,516)
Less: Unamortized issuance cost	(432)	(842)	(1,003)
	$ 599,568	$ 599,503	$ 599,481

On August 14, 2020, the Group issued unsecured bonds at par value for a total of $2,500 million, which comprise bond A - $1,900 million of 5-year bonds with annual coupon rate of 0.75% and bond B - $600 million of 10-year bonds with annual coupon rate of 1%. Both types of bonds have bullet repayment terms, where simple interest is paid on an annual basis and the principal is repaid on maturity. The trustee of the bonds is Bank SinoPac Company Limited.

23. OTHER PAYABLES

	September 30, 2025	December 31, 2024	September 30, 2024
Payables for equipment	$ 128,674	$ 218,158	$ 200,872
Payables for purchase of electricity	105,107	47,583	49,752
Payables for compensation of employees and remuneration of directors	69,240	67,867	50,300
Payables for salaries and bonuses	62,206	63,661	62,031
Payables for compensated absences	16,973	15,329	15,228
Payables for repairs	14,747	23,963	15,098
Payables for professional fees	6,544	14,414	7,497
Payables for interest	2,653	9,297	4,096
Payables for business tax	434	3,138	-
Others	17,655	23,074	15,302
	$ 424,233	$ 486,484	$ 420,176

24. OTHER LIABILITIES

	September 30, 2025	December 31, 2024	September 30, 2024
Other liabilities
Payables for levies	$ 12,770	$ 14,367	$ 14,447

Pursuant to the Regulations Governing the Installation of Renewable Energy Generation Equipment, the module recovery fees of the Group's solar power generation equipment should be calculated based on the installed capacity (kW) of the equipment. The module recovery fees are levied over a period of 10 years and should be paid at the end of each year.

25. PROVISIONS

	September 30, 2025	December 31, 2024	September 30, 2024
Current
Warranties	$ 557,930	$ 549,918	$ 485,638
Onerous contracts	87,397	74,421	77,254
Carbon fee	3,277	-	-
	$ 648,604	$ 624,339	$ 562,892
Non-current
Decommissioning costs and liability	$ 18,730	$ 14,938	$ 14,855

Starting from 2025, the Group recognizes the carbon fee provision in accordance with the Regulations Governing the Collection of Carbon Fees and related regulations of the ROC. The carbon fee provision was calculated based on the standard rate.

26. RETIREMENT BENEFIT PLANS

For the three months ended September 30, 2025 and 2024 and for the nine months ended September 30, 2025 and 2024, the pension expenses of defined benefit plans were calculated based on the actuarially determined pension cost rate on December 31, 2024 and 2023, respectively. The amounts were recognized under the following financial statement accounts:

	For the Three Months Ended September 30	For the Nine Months Ended September 30
	2025	2024
Operating costs	$ 710	$ 774
Operating expenses	$ 585	$ 554

36 -

27. MATURITY ANALYSIS OF ASSETS AND LIABILITIES

The Group's assets and liabilities related to the construction business are classified as either current or non-current based on the operating cycle. The amounts expected to be recovered or settled within one year after the reporting period and more than one year after the reporting period for related assets and liabilities were as follows:

September 30, 2025

| | Within
One Year | More than
One Year | Total |
| --- | --- | --- | --- |
| Assets | | | |
| Contract assets | $ 1,790,046 | $ 368,880 | $ 2,158,926 |
| Prepaid construction costs | 284,531 | - | 284,531 |
| | $ 2,074,577 | $ 368,880 | $ 2,443,457 |
| Liabilities | | | |
| Contract liabilities | $ 114 | $ - | $ 114 |
| Provisions - warranties | 43,576 | 514,354 | 557,930 |
| Onerous contracts | - | 87,397 | 87,397 |
| Construction costs payable | 1,942,707 | 414,507 | 2,357,214 |
| | $ 1,986,397 | $ 1,016,258 | $ 3,002,655 |
| December 31, 2024 | | | |
| | Within
One Year | More than
One Year | Total |
| Assets | | | |
| Contract assets | $ 1,725,040 | $ 1,981,383 | $ 3,706,423 |
| Prepaid construction costs | 159,210 | - | 159,210 |
| | $ 1,884,250 | $ 1,981,383 | $ 3,865,633 |
| Liabilities | | | |
| Contract liabilities | $ 114 | $ 244,597 | $ 244,711 |
| Provisions - warranties | 33,113 | 516,805 | 549,918 |
| Onerous contracts | - | 74,421 | 74,421 |
| Construction costs payable | 1,689,047 | 2,319,035 | 4,008,082 |
| | $ 1,722,274 | $ 3,154,858 | $ 4,877,132 |

September 30, 2024

	Within One Year	More than One Year	Total
Assets
Contract assets	$ 1,032,439	$ 2,103,687	$ 3,136,126
Liabilities
Contract liabilities	$ 114	$ -	$ 114
Provisions - warranties	13,947	471,691	485,638
Onerous contracts	-	77,254	77,254
Construction costs payable	1,152,017	77,554	1,229,571
	$ 1,166,078	$ 626,499	$ 1,792,577

28. EQUITY

a. Share capital

	September 30, 2025	December 31, 2024	September 30, 2024
Number of authorized ordinary shares (in thousands)	1,000,000	1,000,000	1,000,000
Amount of authorized ordinary shares	$ 10,000,000	$ 10,000,000	$ 10,000,000
Number of issued and fully paid ordinary shares (in thousands)	730,282	730,282	730,282
Amount of issued and fully paid ordinary shares	$ 7,302,820	$ 7,302,820	$ 7,302,820

A holder of issued ordinary shares with par value of $10 is entitled to vote and to receive dividends.

b. Capital surplus

	September 30, 2025	December 31, 2024	September 30, 2024
May be used to offset a deficit, distributed as cash dividends, or transferred to share capital (Note)
Issuance of ordinary shares	$ 2,589,425	$ 2,589,425	$ 2,589,425
Conversion of bonds	32,494	32,494	32,494
May be used to offset a deficit to share capital
Share of changes in capital surplus of associates	163,509	-	-
	$ 2,785,428	$ 2,621,919	$ 2,621,919

Note: The capital surplus may be used to offset a deficit; in addition, when the Corporation has no deficit, such capital surplus may be transferred to share capital or distributed in cash. Capitalization of such capital surplus is limited to once a year and a certain prescribed percentage of the Corporation’s paid-in capital.

c. Retained earnings and dividend policy

Under the dividend policy as set forth in the Corporation’s current articles of incorporation (the “Articles”), where the Corporation made a profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside as legal reserve 10% of the remaining profit, setting aside or reversing special reserve in accordance with the laws and regulations, and then any remaining profit together with any undistributed retained earnings shall be used by the Corporation’s board of directors as the basis for proposing a distribution plan where not less than 70% of distributable retained earnings shall be distributed; the plan should be resolved in the shareholders in their meeting for the distribution of dividends to shareholders. For the policies on the distribution of the compensation of employees and remuneration of directors, please refer to Note 30.f.

The Corporation adopted a balanced dividend policy, where dividends are distributed in the form of both cash and shares, out of which cash dividends shall not be less than 20% of the total dividends distributed. However, the ratio of cash dividends may be reduced to less than 20%, which should be resolved by the shareholders in their meeting. If the expenditure for a new important investment plan reaches $300 million or above and the Corporation is unable to obtain other funds to meet the cash needs of the plan.

Appropriation of earnings to the legal reserve shall be made until the legal reserve equals the Corporation’s paid-in capital. The legal reserve may be used to offset deficit. If the Corporation has no deficit and the legal reserve has exceeded 25% of the Corporation’s paid-in capital, the excess may be transferred to capital or distributed in cash.

Items referred to under Rule No. 1090150022 issued by the FSC and in the directive titled “Questions and Answers for Special Reserves Appropriated Following Adoption of IFRS Accounting Standards” should be appropriated to or reversed from a special reserve by the Corporation.

The appropriations of earnings for 2024 and 2023, which had been resolved in the shareholders’ meetings on May 29, 2025 and May 31, 2024, respectively, were as follows:

	Appropriation of Earnings
	2024	2023
Legal reserve	$ 172,693	$ 126,025
Special reserve	18,182	-
Reversal of special reserve	(360,134)	(287,029)
Cash dividends	1,533,592	1,409,444
Cash dividends per share (NT$)	2.1	1.93

The reversals of the special reserve in 2024 and 2023 were the reversal amount voluntarily set aside in accordance with the Company Act in prior years.

38 -

29. REVENUE

	For the Three Months Ended September 30		For the Nine Months Ended September 30
	2025	2024	2025	2024
Accounted for continuing operations
Revenue from contracts with customers
Sales
Sales of electricity	$ 338,468	$ 319,727	$ 1,016,918	$ 946,776
Sales of steam	89,202	79,053	247,722	195,659
Others	110	122	350	344
	427,780	398,902	1,264,990	1,142,779
Construction service	886,123	1,684,686	4,132,263	5,210,401
Operations, maintenance and consulting services	85,862	55,200	246,847	194,925
	1,399,765	2,138,788	5,644,100	6,548,105
Accounted for discontinued operations
Revenue from contracts with customers (Note 13)
Sales
Service concession income	-	-	-	18,187
	$ 1,399,765	$ 2,138,788	$ 5,644,100	$ 6,566,292
a. Contract balances
	September 30, 2025	December 31, 2024	September 30, 2024	January 1, 2024
Notes receivable and accounts receivable (including related parties)	$ 973,658	$ 872,483	$ 1,402,382	$ 147,316
Contract assets
Construction contracts	$ 2,158,926	$ 3,706,423	$ 3,136,126	$ 1,765,727
Rendering of services	590,925	430,719	415,109	356,018
	$ 2,749,851	$ 4,137,142	$ 3,551,235	$ 2,121,745
Contract liabilities
Construction contracts	$ 114	$ 244,711	$ 114	$ 113,264
Power purchase agreements	152,160	134,637	130,540	168,845
Rendering of services	-	41	-	-
	$ 152,274	$ 379,389	$ 130,654	$ 282,109

The changes in the contract assets and the contract liabilities balances primarily resulted from the timing difference between the Group's satisfaction of performance obligations and the customer's payment.

The Group measures the loss allowance for contract assets at an amount equal to lifetime ECLs. The contract assets will be transferred to accounts receivable when the corresponding invoice is billed to the customer, and the contract assets have substantially the same risk characteristics as the trade receivables from the same types of contracts. Therefore, the Group concluded that the expected loss rates for trade receivables can be applied to the contract assets. The Group did not recognize an allowance for impairment loss against all of the contract assets.

b. Refer to Note 44 for information about disaggregation of revenue from contracts with customers.

30. NET PROFIT

a. Other income

	For the Three Months Ended September 30		For the Nine Months Ended September 30
	2025	2024	2025	2024
From continuing operations
Dividend income	$ -	$ -	$ 10,000	$ 10,000
Others	3,862	3,192	12,134	9,966
	3,862	3,192	22,134	19,966
From discontinued operations (Note 13)
Others	-	-	-	26
	$ 3,862	$ 3,192	$ 22,134	$ 19,992

b. Other gains and losses

	For the Three Months Ended September 30		For the Nine Months Ended September 30
	2025	2024	2025	2024
From continuing operations
Foreign exchange gain	$ 59,296	$ 4,100	$ 115,285	$ 14,348
Foreign exchange loss	(18,393)	(6,405)	(79,587)	(11,269)
Lease modification gain (loss)	-	-	2	(47)
Others	(22)	(343)	(1,022)	(343)
	40,881	(2,648)	34,678	2,689
From discontinued operations (Note 13)
Others	-	-	-	(6)
	$ 40,881	$ (2,648)	$ 34,678	$ 2,683

c. Finance costs

	For the Three Months Ended September 30		For the Nine Months Ended September 30
	2025	2024	2025	2024
From continuing operations
Interest on bank loans	$ 29,420	$ 9,441	$ 54,986	$ 28,201
Interest on bonds payable	3,300	5,227	13,746	15,668
Interest on lease liabilities	2,430	2,229	7,296	6,803
Interest on commercial papers	4,294	1,377	5,103	4,948
Others	168	146	475	436
	39,612	18,420	81,606	56,056
From discontinued operations (Note 13)
Interest on bank loans	-	-	-	2,798
Interest on lease liabilities	-	-	-	8
Others	-	-	-	3
	-	-	-	2,809
	$ 39,612	$ 18,420	$ 81,606	$ 58,865

Information about capitalized interest were as follows:

	For the Three Months Ended September 30		For the Nine Months Ended September 30
	2025	2024	2025	2024
Amount of capitalized interest	$ -	$ 4,402	$ 418	$ 4,641
Capitalized interest rate	-	2.42%	2.17%	2.42%

d. Depreciation and amortization

	For the Three Months Ended September 30		For the Nine Months Ended September 30
	2025	2024	2025	2024
From continuing operations
Property, plant and equipment	$ 89,397	$ 91,683	$ 274,033	$ 276,076
Right-of-use assets	14,547	14,522	43,511	43,688
Intangible assets	8,872	8,437	26,178	24,287
Prepaid power lines usage expense	265	265	794	794
	113,081	114,907	344,516	344,845
From discontinued operations (Note 13)
Property, plant and equipment	-	-	-	144
Intangible assets	-	-	-	12,035
	-	-	-	12,179
	$ 113,081	$ 114,907	$ 344,516	$ 357,024
				(Continued)

42 -

	For the Three Months Ended September 30		For the Nine Months Ended September 30
	2025	2024	2025	2024
An analysis of depreciation by function
Operating costs	$ 84,526	$ 85,542	$ 258,969	$ 258,050
Operating expenses	19,418	20,663	58,575	61,714
From discontinued operations (Note 13)	-	-	-	144
	$ 103,944	$ 106,205	$ 317,544	$ 319,908
An analysis of amortization by function
Operating costs	$ 299	$ 299	$ 896	$ 896
Operating expenses	8,838	8,403	26,076	24,185
From discontinued operations (Note 13)	-	-	-	12,035
	$ 9,137	$ 8,702	$ 26,972	$ 37,116

e. Employee benefits expense

	For the Three Months Ended September 30		For the Nine Months Ended September 30
	2025	2024	2025	2024
From continuing operations
Post-employment benefits
Defined contribution plans	$ 4,049	$ 3,924	$ 12,036	$ 11,802
Defined benefit plans	1,295	1,328	4,268	3,983
	5,344	5,252	16,304	15,785
Short-term benefits	121,012	129,460	416,827	394,871
	126,356	134,712	433,131	410,656
From discontinued operations (Note 13)
Post-employment benefits
Defined contribution plans	-	-	-	197
Share-based payments	-	-	-	4,474
	-	-	-	4,671
Total employee benefits expense	$ 126,356	$ 134,712	$ 433,131	$ 415,327
An analysis of employee benefits expense by function
Operating costs	$ 79,015	$ 83,321	$ 247,633	$ 254,168
Operating expenses	47,341	51,391	185,498	156,488
From discontinued operations (Note 13)	-	-	-	4,671
	$ 126,356	$ 134,712	$ 433,131	$ 415,327

43 -

	For the Three Months Ended September 30		For the Nine Months Ended September 30
	2025	2024	2025	2024
From continuing operations
Short-term benefits
Wages and salaries	$ 106,299	$ 113,800	$ 370,863	$ 348,442
Labor and health insurance	8,076	8,768	23,986	25,577
Others	6,637	6,892	21,978	20,852
	121,012	129,460	416,827	394,871
From discontinued operations (Note 13)
Short-term benefits
Wages and salaries	-	-	-	3,890
Labor and health insurance	-	-	-	394
Others	-	-	-	190
	-	-	-	4,474
	$ 121,012	$ 129,460	$ 416,827	$ 399,345

f. Compensation of employees and remuneration of directors

The compensation of employees and remuneration of directors is set aside at rates not less than 0.5% and not higher than 1%, respectively, of net profit before income tax, compensation of employees and remuneration of directors. In accordance with the amendments to the Securities and Exchange Act in August 2024, the Corporation’s board of directors approved an amendment to the Articles on March 13, 2025. The amendment was approved at the 2025 shareholders’ meeting and specifies that 1% of the employee compensation will be allocated to non-executive employees, with the remaining portion distributed among all employees.

The compensation of employees and remuneration of directors for the three months ended September 30, 2025 and 2024, and for the nine months ended June 30, 2025 and 2024, were as follows:

	For the Three Months Ended September 30		For the Nine Months Ended September 30
	2025	2024	2025	2024
Compensation of employees	$ 7,358	$ 11,415	$ 45,160	$ 34,951
Remuneration of directors	1,680	2,607	14,281	10,134

If there will be a change in the proposed amount after the annual consolidated financial statements are authorized for issue, the difference will be recorded as a change in the accounting estimate.

The compensation of employees and remuneration of directors for the years ended December 31, 2024 and 2023, which had been resolved by the Corporation’s board of directors on March 13, 2025 and March 13, 2024, respectively, were as follows:

	For the Year Ended December 31
	2024	2023
Compensation of employees - cash	$ 45,567	$ 42,398
Remuneration of directors - cash	14,270	13,133

There was no difference between the above resolved amounts and the respective amounts recognized in the consolidated financial statements for the years ended December 31, 2024 and 2023.

Information on the compensation of employees and remuneration of directors resolved by the Corporation's board of directors is available at the Market Observation Post System website of the Taiwan Stock Exchange.

31. INCOME TAX

a. Major components of income tax (benefit) expense recognized in profit or loss

	For the Three Months Ended September 30		For the Nine Months Ended September 30
	2025	2024	2025	2024
From continuing operations
Current income tax
In respect of the current period	$ (7,200)	$ 3,780	$ 100,497	$ 60,052
Income tax on unappropriated earnings	-	-	1,106	1,142
Adjustments for prior year	-	-	(609)	-
	(7,200)	3,780	100,994	61,194
Deferred income tax
In respect of the current period	5,240	3,526	(5,977)	(20,393)
	(1,960)	7,306	95,017	40,801
From discontinued operations (Note 13)
Deferred income tax
In respect of the current period	-	-	-	(1,250)
In respect of the current period	$ (1,960)	$ 7,306	$ 95,017	$ 39,551

b. Income tax assessments

The income tax returns of the Corporation, SEC, SWC, SSC, TGE, SKE, MWC and HML through 2023 have been assessed by the tax authorities.

Under the local income tax law, TCIC is not obligated to pay income tax.

32. EARNINGS PER SHARE

	For the Three Months Ended September 30		For the Nine Months Ended September 30
	2025	2024	2025	2024
Basic earnings per share (NT$)
From continuing operations	$ 0.19	$ 0.35	$ 1.86	$ 1.33
From discontinued operations	-	-	-	(0.01)
Total basic earnings per share	$ 0.19	$ 0.35	$ 1.86	$ 1.32
Diluted earnings per share (NT$)
From continuing operations	$ 0.19	$ 0.34	$ 1.86	$ 1.33
From discontinued operations	-	-	-	(0.01)
Total diluted earnings per share	$ 0.19	$ 0.34	$ 1.86	$ 1.32

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

Net profit

	For the Three Months Ended September 30		For the Nine Months Ended September 30
	2025	2024	2025	2024
Net income for the period attributable to owners of the Corporation earnings used in the computation of basic earnings per share	$ 135,769	$ 252,101	$ 1,360,710	$ 967,003
Less: Net loss from discontinuing operations	-	-	-	(4,338)
Net income from continued operations	$ 135,769	$ 252,101	$ 1,360,710	$ 971,341

Weighted average number of ordinary shares outstanding (in thousands of shares)

	For the Three Months Ended September 30		For the Nine Months Ended September 30
	2025	2024	2025	2024
Weighted average number of ordinary shares used in the computation of basic earnings per share	730,282	730,282	730,282	730,282
Effect of potentially dilutive ordinary shares
Compensation of employees of the Corporation	948	772	1,236	1,007
Weighted average number of ordinary shares used in the computation of diluted earnings per share	731,230	731,054	731,518	731,289

The Corporation may settle the compensation of employees paid in cash or shares; therefore, the Corporation assumes that the entire amount of the compensation are settled in shares, and the resulting potential shares are included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.

33. DISPOSAL OF SUBSIDIARIES

On May 14, 2024, the Group entered into a sale agreement to dispose of YYC (and CGPC). The disposal was completed on May 22, 2024 on which dates lost control of YYC (and CGPC).

a. Consideration received from disposal

	YYC (and CGPC)
Cash and cash equivalents	$ 141,337

b. Analysis of assets and liabilities over which control is lost

	YYC (and CGPC)
Current assets
Cash and cash equivalents	$ 55,680
Accounts receivable from related parties	6,900
Other receivables	2,904
Prepaid value-added tax	19,935
Other current assets	1,468
Non-current assets
Financial assets at amortized cost	10,000
Property, plant and equipment	1,524
Intangible assets	543,621
Deferred income tax assets	5,875
Refundable deposits	77
Current liabilities
Construction costs payable	(2,066)
Other payables	(6,229)
Current portion of long-term borrowing	(300,000)
Lease liabilities	(192)
Other current liabilities	(95)
Non-current liabilities
Contract liabilities	(59,529)
Lease liabilities	(1,867)
Guarantee deposits received	(2,023)
Net assets disposed of	$ 275,983

c. Gain on disposal of subsidiaries

	YYC (and CGPC)
Consideration received	$ 141,337
Net assets disposed of	(275,983)
Non-controlling interests	135,232
Gain on disposals	$ 586

The gains on disposal of YYC (and CGPC) were included in the profit from discontinued operations and other gains or losses, respectively.

d. Net cash inflow on disposal of subsidiaries

	YYC (and CGPC)
Consideration received in cash and cash equivalents	$ 141,337
Less: Cash and cash equivalent balances disposed of	(55,680)
	$ 85,657

34. PARTIAL CASH TRANSACTIONS

a. For the nine months ended September 30, 2025 and 2024, the Group entered into the following partial cash investing activities:

	For the Nine Months Ended September 30
	2025	2024
Partial cash payments for acquisition of property, plant and equipment
Acquisition of property, plant and equipment	$ 71,942	$ 51,308
Changes in payables for equipment	89,484	206,243
Depreciation of right-of-use assets	(673)	(753)
Cash payments	$ 160,753	$ 256,798

b. Changes in liabilities arising from financing activities

For the nine months ended September 30, 2025

	January 1,2025	Cash Flows	Non-cash Changes			September 30,2025
			New Leases	Interest Expense	Others
Short-term bills payable	$ 499,764	$ 1,400,000	$ -	$ 5,103	$ (8,623)	$ 1,896,244
Long-term loans	2,109,187	3,933,367	-	-	-	6,042,554
Guarantee deposits received	89,397	35,530	-	-	-	124,927
Bonds payable	2,499,158	(1,900,000)	-	13,746	(13,336)	599,568
Lease liabilities	456,265	(40,877)	53,936	7,296	4,176	480,796
	$ 5,653,771	$ 3,428,020	$ 53,936	$ 26,145	$ (17,783)	$ 9,144,089

For the nine months ended September 30, 2024

	January 1, 2024	Cash Flows	Non-cash Changes				September 30, 2024
			New Leases	Disposal of Subsidiaries	Interest Expense	Others
Short-term borrowings	$ 55,000	$ (20,000)	$ -	$ -	$ -	$ -	$ 35,000
Short-term bills payable	999,130	(500,000)	-	-	4,948	(4,324)	499,754
Long-term loans	1,751,908	684,617	-	(300,000)	-	-	2,136,525
Guarantee deposits received	53,732	38,615	-	(2,023)	-	-	90,324
Bonds payable	2,498,517	-	-	-	15,668	(15,188)	2,498,997
Lease liabilities	483,071	(41,070)	3,215	(2,059)	6,811	(5,413)	444,555
	$ 5,841,358	$ 162,162	$ 3,215	$ (304,082)	$ 27,427	$ (24,925)	$ 5,705,155

35. EXPLANATORY COMMENTS ABOUT THE SEASONALITY OR CYCLICALITY OF INTERIM OPERATIONS

The operations of the cogeneration plant have seasonal characteristics and the electricity price is determined in accordance with TPC's requirements. During the summer months (May 16 to October 15), the selling price of electricity is higher. The rest of the months are classified as non-summer months. Based on past experience, the Corporation sells electricity and steam it produces to energy users, and sells any remaining electricity to TPC. Revenue is recognized accordingly on a monthly basis. Hence, the peak period for sales is in the summer months.

Construction and operations, maintenance and consulting services do not have seasonal characteristics. Based on past experience, the Group's consolidated revenue is recognized based on the progress of each construction project and when services are provided.

36. CAPITAL MANAGEMENT

The Corporation manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximizing the return to shareholders through the optimization of the debt and equity balance. The Corporation's overall strategy remains unchanged within recent 5 years.

The capital structure of the Group consists of net debt (borrowings offset by cash and cash equivalents) and equity attributable to owners of the Corporation (comprising ordinary shares, capital surplus, retained earnings and other equity).

Key management personnel of the Corporation review the capital structure on an annual basis. As part of this review, the key management personnel consider the cost of capital and the risks associated with each class of capital. Based on recommendations of the key management personnel, in order to balance the overall capital structure, the Corporation may adjust the amount of dividends paid to shareholders, the number of new shares issued, and/or the amount of new debt issued or existing debt redeemed.

37. FINANCIAL INSTRUMENTS

a. Fair value of financial instruments that are not measured at fair value

Management believes the carrying amounts of the financial assets and financial liabilities not carried at fair value are approximately at their fair values.

b. Fair value of financial instruments that are measured at fair value on a recurring basis

1) Fair value hierarchy

September 30, 2025

	Level 1	Level 2	Level 3	Total
Financial assets at FVTOCI
Investments in equity
instruments	$ -	$ -	$ 270,557	$ 270,557
Domestic unlisted securities
December 31, 2024
	Level 1	Level 2	Level 3	Total
Financial assets at FVTOCI
Investments in equity
instruments	$ -	$ -	$ 268,557	$ 268,557
Domestic unlisted securities
September 30, 2024
	Level 1	Level 2	Level 3	Total
Financial assets at FVTOCI
Investments in equity
instruments	$ -	$ -	$ 267,854	$ 267,854
Domestic unlisted securities

2) Reconciliation of Level 3 fair value measurements of financial instruments

For the nine months ended September 30, 2025

| | Financial Assets
at FVTOCI -
Equity
Investments |
| --- | --- |
| Beginning balance | $ 268,557 |
| Recognized in other comprehensive loss | 2,000 |
| Ending balance | $ 270,557 |
| For the nine months ended September 30, 2024 | |
| | Financial Assets
at FVTOCI -
Equity
Investments |
| Beginning balance | $ 270,054 |
| Recognized in other comprehensive loss | (2,200) |
| Ending balance | $ 267,854 |

3) Valuation techniques and inputs applied for the purpose of Level 3 fair value measurement

The fair value of domestic unlisted equity in KADC securities was determined using the income approach. In this approach, the discounted cash flow method was used to capture the present value of the expected future economic benefits to be derived from the ownership of the investee. The significant unobservable inputs used are listed on the table below. An increase in long-term revenue growth rates or long-term pre-tax operating margin or a decrease in the weighted average cost of capital (WACC) or discount for lack of marketability used in isolation would result in increases in fair value.

	September 30, 2025	December 31, 2024	September 30, 2024
Long-term revenue growth rates	0.00%-2.31%	(0.03%)-2.31%	(0.08%)-1.99%
Long-term pre-tax operating margin	39.99%-45.08%	39.99%-45.08%	39.26%-45.18%
WACC	7.70%	7.58%	7.31%
Discount for lack of marketability	18.97%	16.11%	15.96%

If the inputs to the valuation model were changed to reflect reasonably possible alternative assumptions while all the other variables were held constant, the fair value of the equity investments would have increased (decreased) as follows:

	September 30, 2025	December 31, 2024	September 30, 2024
Long-term revenue growth rate
1% increase	$ 30,400	$ 31,600	$ 33,800
1% decrease	$ (31,000)	$ (29,600)	$ (31,800)
WACC
0.5% increase	$ (12,400)	$ (13,200)	$ (13,600)
0.5% decrease	$ 13,400	$ 14,400	$ 14,600

The fair value of domestic unlisted equity in Synergy securities was determined using the market approach. The judgment is based on the evaluation of companies of the same type and the operating conditions of the invested companies.

c. Categories of financial instruments

	September 30, 2025	December 31, 2024	September 30, 2024
Financial assets
Measured at amortized cost (Note 1)	$ 4,500,000	$ 3,670,508	$ 3,647,403
FVTOCI	270,557	268,557	267,854
Financial liabilities
Measured at amortized cost (Note 2)	13,480,841	10,016,259	10,100,982

Note 1: The balances include cash and cash equivalents, notes receivable, accounts receivable, accounts receivable from related parties, dividend receivables, part of other receivables, refundable deposits and financial assets measured at amortized cost.

Note 2: The balances include financial liabilities measured at amortized cost, which comprise short-term borrowings, short-term bills payable, accounts payable, accounts payable to related parties, construction costs payable, other payables, current portion of long-term borrowings, current portion of bonds payable, guarantee deposits received, bonds payable and long-term borrowings. However, short-term employee benefits payable and payables for business tax are not included.

d. Financial risk management objectives and policies

The Group’s financial risk management objectives are to manage the market risk (including foreign currency risk, interest rate risk and other price risk), credit risk and liquidity risk with respect to the Group’s operations. To lower the financial risks, the Group seeks to identify, evaluate, and avoid market uncertainty, to minimize the potential unfavorable impact on the Group due to market volatility.

The Group’s important financial activities are reviewed by the board of directors in accordance with related regulations and internal control systems. The Group shall follow the overall guidelines for financial risk management and segregation of duties with respect to financial operating procedures.

1) Market risk

a) Foreign currency risk

Refer to Note 42 for the carrying amounts of the Group’s significant monetary assets and monetary liabilities denominated in non-functional foreign currencies (including those eliminated in the consolidated financial statements).

Sensitivity analysis

The Group is mainly exposed to the U.S. dollar and the Euro.

The following table details the Group’s sensitivity to a 1% increase and decrease in its functional currency against the relevant foreign currencies. A positive number below indicates a decrease in profit before income tax associated with the New Taiwan dollar strengthening 1% against the relevant foreign currency. For a 1% weakening of the New Taiwan dollar, there would be an equal and opposite impact on profit before income tax, and the balances below would be negative.

	For the Nine Months Ended September 30
	2025	2024
Profit or loss
USD	$ 1,044	$ 582
EUR	7,319	1,499

b) Interest rate risk

The carrying amounts of the Group’s financial liabilities with exposure to interest rates at the end of the reporting periods were as follows:

	September 30, 2025	December 31, 2024	September 30, 2024
Fair value interest rate risk
Financial assets	$ 2,034,797	$ 491,018	$ 599,389
Financial liabilities	2,976,608	3,455,187	3,433,306
Cash flow interest rate risk
Financial assets	1,268,002	1,844,515	1,509,371
Financial liabilities	6,042,554	2,109,187	2,171,525

Sensitivity analysis

The sensitivity analysis below was determined based on the Group’s exposure to interest rates for non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis was prepared assuming the amount of liabilities outstanding at the end of the reporting period was outstanding for the reporting period. A 1% increase or decrease in interest rates was used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

If interest rates had been 1% increase/decrease and all other variables were held constant, the Group’s profit before income tax for the nine months ended September 30, 2025 and 2024 would have decreased/increased by $35,809 thousand and $4,966 thousand, respectively.

c) Other price risk

The Group was exposed to equity price risk through its investments in equity securities. Equity investments are held for strategic rather than for trading purposes, the Group does not actively trade these investments.

Sensitivity analysis

The sensitivity analysis below was determined based on the exposure to equity price risks at the end of the period.

If equity prices had been 1% higher/lower, the pre-tax other comprehensive income for the nine months ended September 30, 2025 and 2024 would have increased/decreased by $2,706 thousand and $2,679 thousand, respectively, as a result of the changes in fair value of financial assets at FVTOCI.

2) Credit risk

Credit risk represents the potential loss that would be incurred by the Group if the counterparties or third parties breached the contracts. Financial instruments with positive fair values at the balance sheet date are evaluated for credit risk. The Group only transacts with financial institutions and companies with good credit ratings; thus, no material credit risk is anticipated.

52 -

3) Liquidity risk

The Group manages liquidity risk by maintaining adequate cash in banks and banking facilities, and continuously monitoring forecast and actual cash flows as well as matching the maturity profiles of financial assets and liabilities. As of September 30, 2025, December 31, 2024 and September 30, 2024, the available unutilized bank loan facilities were $5,719,670 thousand, $11,129,876 thousand and $11,236,844 thousand, respectively, which were sufficient to cover the Group's current liabilities.

The following tables detail the Group's remaining contractual maturities of its non-derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Group can be required to pay.

September 30, 2025

| | Within
One Year | 2 to 3 Years | 4 to 5 Years | 5+ Years | Total |
| --- | --- | --- | --- | --- | --- |
| Short-term bills payable | $ 1,900,000 | $ - | $ - | $ - | $ 1,900,000 |
| Non-interest bearing
liabilities | 4,942,475 | - | - | - | 4,942,475 |
| Lease liabilities | 67,650 | 75,580 | 51,235 | 389,503 | 583,968 |
| Long-term borrowings | 933,517 | 3,827,970 | 296,329 | 984,738 | 6,042,554 |
| Bonds payable | 6,000 | 12,000 | 611,221 | - | 629,221 |
| | $ 7,849,642 | $ 3,915,550 | $ 958,785 | $ 1,374,241 | $ 14,098,218 |
| December 31, 2024 | | | | | |
| | Within
One Year | 2 to 3 Years | 4 to 5 Years | 5+ Years | Total |
| Short-term bills payable | $ 500,000 | $ - | $ - | $ - | $ 500,000 |
| Non-interest bearing
liabilities | 4,908,150 | - | - | - | 4,908,150 |
| Lease liabilities | 36,758 | 69,811 | 50,661 | 408,786 | 566,016 |
| Long-term borrowings | 221,829 | 486,707 | 300,329 | 1,100,322 | 2,109,187 |
| Bonds payable | 1,914,836 | 12,000 | 12,000 | 603,721 | 2,542,557 |
| | $ 7,581,573 | $ 568,518 | $ 362,990 | $ 2,112,829 | $ 10,625,910 |
| September 30, 2024 | | | | | |
| | Within
One Year | 2 to 3 Years | 4 to 5 Years | 5+ Years | Total |
| Short-term borrowings | $ 35,000 | $ - | $ - | $ - | $ 35,000 |
| Short-term bills payable | 500,000 | - | - | - | 500,000 |
| Non-interest bearing
liabilities | 4,930,706 | - | - | - | 4,930,706 |
| Lease liabilities | 57,904 | 57,320 | 50,887 | 374,200 | 540,311 |
| Long-term borrowings | 123,971 | 589,682 | 300,329 | 1,122,543 | 2,136,525 |
| Bonds payable | 1,918,399 | 12,000 | 12,000 | 605,221 | 2,547,620 |
| | $ 7,565,980 | $ 659,002 | $ 363,216 | $ 2,101,964 | $ 10,690,162 |

53 -

38. RELATED PARTY TRANSACTIONS

Besides as disclosed elsewhere in the other notes, details of significant transactions between the Group and its related parties were disclosed below:

a. Related parties and relationships

Related Party	Relationship with the Group
TPC	Investor with significant influence over the Group
TYC	Associate
Sun Ba	Associate
SEPC	Associate
KKPC	Associate
SBPC	Associate

b. Operating transactions

Line Item	Related Party Category/Name	For the Three Months Ended September 30		For the Nine Months Ended September 30
		2025	2024	2025	2024
Sales	Investors with significant influence over the Group TPC	$ 198,167	$ 190,571	$ 513,243	$ 519,053
Construction service revenue	Investors with significant influence over the Group TPC	$ 254,433	$ 82,575	$ 901,672	$ 167,641
Operations, maintenance and consulting	Investors with significant influence over the Group TPC Associates Others	$ 58,800	$ 29,033	$ 176,400	$ 146,633
		4,226	4,673	12,463	12,746
		$ 63,026	$ 33,706	$ 188,863	$ 159,379
Cost of sales	Investors with significant influence over the Group TPC Associates Others	$ 7,144	$ 3,852	$ 27,181	$ 18,097
		27	43	92	90
		$ 7,171	$ 3,895	$ 27,273	$ 18,187
Operations, maintenance and consulting services cost	Investors with significant influence over the Group TPC	$ 10	$ 2	$ 10	$ 10

The above transactions with related parties were negotiated based on each contract.

c. Non-operating transactions

Line Item	Related Party Category/Name	For the Three Months Ended September 30		For the Nine Months Ended September 30
		2025	2024	2025	2024
Other income	Associates
	TYC	$ 429	$ 995	$ 2,238	$ 2,567
	KKPC	322	282	1,453	1,643
	SBPC	341	97	1,388	791
	SEPC	403	270	1,194	1,149
	Sun Ba	290	338	958	952
		$ 1,785	$ 1,982	$ 7,231	$ 7,102
Interest expense	Investors with significant influence over the Group TPC	$ 19	$ -	$ 58	$ -

The above transactions with related parties were negotiated based on each contract.

d. Receivables from related parties

Line Item	Related Party Category/Name	September 30, 2025	December 31, 2024	September 30, 2024
Accounts receivable from related parties	Investors with significant influence over the Group TPC	$ 234,451	$ 173,717	$ 126,902
	Associates
	Sun Ba	46,086	1,047	1,212
	Others	653	2,756	644
		46,739	3,803	1,856
		$ 281,190	$ 177,520	$ 128,758
Other receivables	Associates
	TYC	$ 196	$ 1,147	$ 185
	SEPC	-	1,212	-
	Others	-	1,762	-
		$ 196	$ 4,121	$ 185

The outstanding receivables from related parties were unsecured. For the nine months ended September 30, 2025 and 2024, no impairment loss was recognized on receivables from related parties.

e. Payables to related parties

Line Item	Related Party Category/Name	September 30, 2025	December 31, 2024	September 30, 2024
Accounts payable to related parties	Investors with significant influence over the Group TPC	$ 1,620	$ 1,438	$ 1,592

56 -

Line Item	Related Party Category/Name	September 30, 2025	December 31, 2024	September 30, 2024
Other payables	Investors with significant influence over the Group TPC Associates Others	$ 3,471	$ 3,200	$ 1,393
		—	156	—
		$ 3,471	$ 3,356	$ 1,393

The outstanding payables to related parties were unsecured.

f. Contract assets

Related Party Category/Name	September 30, 2025	December 31, 2024	September 30, 2024
Investors with significant influence over the Group TPC Associates Others	$ 1,042,849	$ 608,824	$ 573,661
	205	43,250	43,414
	$ 1,043,054	$ 652,074	$ 617,075

g. Contract liabilities

Related Party Category/Name	September 30, 2025	December 31, 2024	September 30, 2024
Investors with significant influence over the Group TPC Associates Others	$ —	$ 244,597	$ —
	—	41	—
	$ —	$ 244,638	$ —

h. Lease agreement

Line Item	Related Party Category/Name	September 30, 2025	December 31, 2024	September 30, 2024
Lease liabilities - current	Investors with significant influence over the Group TPC	$ 369	$ 524	$ 522
Lease liabilities - non-current	Investors with significant influence over the Group TPC	$ 6,643	$ 7,031	$ 7,011

i. Sublease arrangements

Line Item	Related Party Category/Name	September 30, 2025	December 31, 2024	September 30, 2024
Finance lease receivables - current	Associates
	Sun Ba	$ 3,824	$ 391	$ 1,541
	SBPC	2,966	254	994
	SEPC	2,049	181	711
		$ 8,839	$ 826	$ 3,246
Finance lease receivables - non-current	Associates
	Sun Ba	$ 1,291	$ -	$ -
	SBPC	1,001	-	-
	SEPC	691	-	-
		$ 2,983	$ -	$ -

For the nine months ended September 30, 2025 and 2024, no impairment loss was recognized for finance lease receivables. Refer to Note 10 for information about sublease arrangements.

j. Remuneration of key management personnel

	For the Three Months Ended September 30		For the Nine Months Ended September 30
	2025	2024	2025	2024
Short-term employee benefits	$ 12,099	$ 11,823	$ 42,471	$ 37,258
Post-employment benefits	226	227	793	758
	$ 12,325	$ 12,050	$ 43,264	$ 38,016

The remuneration of directors and key executives was determined by the remuneration committee based on the performance of individuals and market trends.

39. ASSETS PLEDGED OR MORTGAGED AS COLLATERAL

The following assets have been pledged or mortgaged as collateral for borrowings, contract performance and establishment of a branch office:

	September 30, 2025	December 31, 2024	September 30, 2024
Machinery and equipment, net	$ 1,529,424	$ 1,601,174	$ 1,322,721
Buildings	1,192,349	1,234,837	1,249,480
Land	63,214	63,214	63,214
Demand deposits (recognized as financial assets at amortized cost)	6,500	6,500	6,500
Time deposits (recognized as financial assets at amortized cost)	104	-	-
Treasury bills (recognized as financial assets at amortized cost)	321	347	347
	$ 2,791,912	$ 2,906,072	$ 2,642,262

40. SIGNIFICANT CONTINGENCIES AND UNRECOGNIZED COMMITMENTS

In addition to those disclosed in other notes, significant contingencies and unrecognized commitments of the Group as of September 30, 2025 were as follows:

a. The commitments for construction projects that have not been performed amounted to approximately $8,034,269 thousand.

b. Commitments for construction expenditure and purchase of equipment were approximately $8,250,701 thousand.

c. Under a Coal Purchase Agreement, the Group shall purchase 80 thousand tons of coal based on an agreed price.

d. TPC concluded that IPPs violated the Fair Trade Act with concerted action and caused a loss to TPC.

In September 2015, TPC filed administrative proceedings in the Taipei High Administrative Court and filed a civil action in the Taipei District Court to claim compensation for the loss. As of September 30, 2025, civil action in progress were as follows:

TPC filed a civil action in the Taipei District Court to claim $4,257 million, $2,489 million, $307 million and $2,490 million against Sun Ba, SEPC, SBPC and KKPC, respectively. On February 8, 2018, the Taipei District Court ruled to dismiss TPC’s civil action against SBPC. On March 5, 2018, TPC appealed this case to the Taiwan High Court. After the trial, the Taiwan High Court ruled to reject TPC’s appeal and the additional lawsuit on December 28, 2022. TPC subsequently filed an appeal on January 30, 2023. However, after a trial, the Supreme Court announced on November 22, 2023 that the original judgment should be abandoned and sent back to the Taiwan High Court for trial. On June 19, 2018, the Taipei District Court ruled to dismiss TPC’s civil action against Sun Ba, SEPC and KKPC. On July 13, 2018, TPC appealed this case to the Taiwan High Court. After about three years of trial procedures in the Taiwan High Court (THC), THC ruled to dismiss TPC’s appeal and additional claim on November 9, 2021. On December 13, 2021, TPC appealed this case to the Supreme Court. After a trial, the Supreme Court announced on July 16, 2025 that the original judgment should be abandoned and sent back to the Taiwan High Court for trial.

These companies have engaged attorneys for the above claims. Whether these companies are liable for the damages depends on the judgment by the court.

e. On March 24, 2025, the Ministry of Economic Affairs requested Sun Ba to allocate the shortfall in the electricity development assistance fund (EDAF), amounting to $370 million for the period from April 16, 2019 to the end of 2023, as well as the EDAF calculated based on the 2024 power generation volume of the Fong Der Power Plant Phase I, to a designated account by March 31, 2025, in accordance with Articles 4 and 5 of the Regulations on the Use and Supervision of the Electricity Development Assistance Fund. However, Sun Ba believes that the letter contains factual and legal errors. To protect its rights, Sun Ba filed an administrative appeal with the Executive Yuan on March 28, 2025. On May 13, 2025, the Ministry of Economic Affairs imposed a fine of $1 million on Sun Ba for failing to establish the Power Development Assistance Fund in accordance with the requirements of the Electricity Act. Sun Ba subsequently filed an administrative appeal on June 11, 2025 seeking relief.

The companies have engaged legal counsel for the above claims. Whether the companies are obligated to make the payment will depend on the outcome of the review by the Executive Yuan.

58 -

59 -

41. SIGNIFICANT EVENT AFTER THE REPORTING PERIOD

On November 12, 2025, the Corporation’s board of directors resolved to conduct a cash capital increase by issuing 100,000 thousand new shares, of which 10% were reserved for employee subscription, 10% were to be offered to the public, and the remaining shares were to be subscribed for by the existing shareholders of the Corporation in proportion to their holdings as recorded in the shareholder register on the record date.

42. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The following information was aggregated by the foreign currencies other than the functional currencies of the Group, and the exchange rates between the foreign currencies and the respective functional currencies were disclosed. The significant assets and liabilities denominated in foreign currencies were as follows:

September 30, 2025

	Foreign Currency	Exchange Rate	Carrying Amount
Foreign currency assets
Monetary items
USD	$ 3,641	30.45	$ 110,868
EUR	20,873	35.77	$ 746,611
Non-monetary items
Investments accounted for using the equity method
PHP	90,292	0.5245	$ 47,370
Foreign currency liabilities
Monetary items
USD	211	30.45	$ 6,436
EUR	412	35.77	$ 14,746
December 31, 2024
	Foreign Currency	Exchange Rate	Carrying Amount
Foreign currency assets
Monetary items
USD	$ 3,344	32.79	$ 109,653
EUR	138	34.14	$ 4,718
Non-monetary items
Investments accounted for using the equity method
PHP	90,907	0.5652	$ 51,382
Foreign currency liabilities
Monetary items
USD	1,314	32.79	$ 43,099
EUR	427	34.14	$ 14,569

September 30, 2024

	Foreign Currency	Exchange Rate	Carrying Amount
Foreign currency assets
Monetary items
USD	$ 3,927	31.65	$ 124,298
EUR	4,665	35.38	$ 165,046
Non-monetary items
Investments accounted for using the equity method
PHP	90,891	0.5663	$ 51,468
Foreign currency liabilities
Monetary items
USD	2,084	31.65	$ 66,086
EUR	427	35.38	$ 15,098

The significant realized and unrealized foreign exchange gains (losses) were as follows:

	For the Three Months Ended September 30
	2025		2024
Foreign Currency	Exchange Rate	Net Foreign Exchange Gain	Exchange Rate	Net Foreign Exchange (Loss) Gain
USD	29.950 (USD:NTD)	$ 4,803	32.301 (USD:NTD)	$(48,347)
EUR	34.997 (EUR:NTD)	$ 36,041	35.687 (EUR:NTD)	$ 50,675
	For the Nine Months Ended September 30
---	---	---	---	---
	2025		2024
Foreign Currency	Exchange Rate	Net Foreign Exchange (Loss) Gain	Exchange Rate	Net Foreign Exchange Gain
USD	31.222 (USD:NTD)	$(5,274)	32.034 (USD:NTD)	$ 2,091
EUR	34.850 (EUR:NTD)	$ 41,407	34.82 (EUR:NTD)	$ 698

43. SEPARATELY DISCLOSED ITEMS

a. Information on significant transactions:

1) Financing provided to others (None)
2) Endorsements/guarantees provided (None)
3) Significant marketable securities held (excluding investment in subsidiaries, associates, and joint ventures) (Table 1)

4) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 2)

5) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 3)

6) Intercompany relationships and significant intercompany transactions (Table 5)

b. Information on investees (Table 4)

c. Information on investments in mainland China:

1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the period, repatriations of investment income, and limit on the amount of investment in the mainland China area (None)

2) Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses (None):

a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period.

b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period.

c) The amount of property transactions and the amount of the resultant gains or losses.

d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and the purposes.

e) The highest balance, the ending balance, the interest rate range, and total current period interest with respect to financing of funds.

f) Other transactions that have a material effect on the profit or loss for the period or on the financial position, such as the rendering or receipt of services.

44. SEGMENT INFORMATION

Information reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance focuses on types of goods or services delivered or provided. The Group’s reportable segments were as follows:

Guardian cogeneration plant (GCP)
Segment of construction and consulting services (CC)
61 -

YYC and CGPC were discontinued in the current period. The segment information reported on the following pages does not include any amounts for these discontinued operations, which are described in more detail in Note 13.

a. Segment revenue and results

The analysis of the Group's revenue and results from continuing operations by reportable segment was as follows:

	For the Nine Months Ended September 30, 2025
	GCP	CC	Total
Revenue from customers	$ 794,233	$ 4,849,867	$ 5,644,100
Segment profit	$ 191,707	$ 401,830	$ 593,537
Unallocated operating expenses			(121,051)
Interest income			16,546
Interest expense			(72,466)
Share of profit of associates accounted for using the equity method			983,201
Other non-operating income and expenses			55,960
Profit before income tax			$ 1,455,727
Depreciation expense	$ 21,977	$ 193,255
Amortization expense	$ 103	$ 5,606
	For the Nine Months Ended September 30, 2024
	GCP	CC	Total
Revenue from customers	$ 702,581	$ 5,845,524	$ 6,548,105
Segment profit	$ 102,760	$ 202,903	$ 305,663
Unallocated operating expenses			(77,730)
Interest income			15,581
Interest expense			(44,169)
Share of profit of associates accounted for using the equity method			791,714
Other non-operating income and expenses			21,083
Income before tax from continuing operations			$ 1,012,142
Depreciation expense	$ 19,932	$ 195,085
Amortization expense	$ 103	$ 15,538

Segment revenue reported above represented the revenue generated from external customers. Segment profit (loss) represented the profit before income tax earned by each segment without allocation of part of operating expenses, share of profit or loss of associates accounted for using the equity method, part of interest income, part of interest expense, and part of other non-operating income and expenses. This was the measure reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance.

b. Segment assets and liabilities

	September 30, 2025	December 31, 2024	September 30, 2024
Segment assets
Continuing operations
GCP	$ 492,304	$ 490,623	$ 472,878
CC	8,754,654	9,931,696	9,661,207
Total segment assets	9,246,958	10,422,319	10,134,085
Unallocated assets
Investments accounted for using the equity method	17,696,425	13,821,210	13,841,447
Others	3,593,688	3,039,973	2,637,708
Consolidated total assets	$ 30,537,071	$ 27,283,502	$ 26,613,240
Segment liabilities
Continuing operations
GCP	$ 78,365	$ 91,183	$ 115,475
CC	8,151,591	8,375,155	8,174,171
Total segment liabilities	8,229,956	8,466,338	8,289,646
Unallocated liabilities	6,948,753	3,433,360	3,320,318
Consolidated total liabilities	$ 15,178,709	$ 11,899,698	$ 11,609,964

TABLE 1

TAIWAN COGENERATION CORPORATION AND SUBSIDIARIES

SIGNIFICANT MARKETABLE SECURITIES HELD

SEPTEMBER 30, 2025

(In Thousands of New Taiwan Dollars)

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account	September 30, 2025
				Number of Shares (In Thousands)	Carrying Amount	Percentage of Ownership (%)	Fair Value
The Corporation	Stock
KADC	N/A	Financial assets at fair value through other comprehensive income	20,000	$ 248,600	8.00	$ 248,600
	Synergy	N/A	"	1,911	21,957	1.19	21,957

64 -

TABLE 2

TAIWAN COGENERATION CORPORATION AND SUBSIDIARIES

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025

(In Thousands of New Taiwan Dollars)

Buyer/Seller	Related Party	Relationship	Transaction Details				Transaction with Terms Different from Others		Notes/Accounts Receivable (Payable)
			Purchase/Sale	Amount	% of Total (Note 4)	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total (Note 4)
The Corporation	TPC	Investor with significant influence of the parent company	Sales (Note 1)	$ 375,941	11.68	Receivables are collected within 30 days after billing dates under agreements	$ -	-	$ 51,110	10.41
SEC	TPC	Investor with significant influence of the parent company	Sales (Note 2)	1,206,331	27.24	Receivables are collected within 30 days after billing dates under agreements	-	-	180,540	35.51
	The Corporation	Parent company	Sales (Note 3)	2,289,620	51.90	Receivables are collected within 30 days after billing dates under agreements	-	-	42,967 (Note 5)	8.45
MWC	TGE	Fellow subsidiary	Sales (Note 1)	162,531	100.00	Receivables are collected within 30 days after billing dates under agreements	-	-	15,679 (Note 5)	100.00

Note 1: Sales of electricity.
Note 2: Sales of electricity and revenues from construction and operating, maintenance and consulting services.
Note 3: Revenue from construction and operating, maintenance and consulting services.
Note 4: The amount is shown as a ratio of financial statement of each entity.
Note 5: The amount was eliminated upon consolidation.

TABLE 3

TAIWAN COGENERATION CORPORATION AND SUBSIDIARIES

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL

SEPTEMBER 30, 2025

(In Thousands of New Taiwan Dollars)

Company Name	Related Party	Relationship	Ending Balance	Turnover Ratio	Overdue		Amount Received in Subsequent Period	Allowance for Bad Debts
					Amount	Action Taken
SEC	TPC	Investor with significant influence on the parent company	Accounts receivable $ 180,540	Note	$ -	-	$ 7,864	-

Note: The amount represents construction contract receivables, and the method of payment is based on the contract; therefore, the information on turnover ratio is not applicable.

TABLE 4

TAIWAN COGENERATION CORPORATION AND SUBSIDIARIES

NAMES, LOCATIONS, AND RELATED INFORMATION OF INVESTEES

FOR THE NINETMONTHS ENDED SEPTEMBER 30, 2025

(In Thousands of New Taiwan Dollars)

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount		As of September 30, 2025			Net Profit (Loss) of the Investee	Share of Profit (Loss)	Note
				September 30, 2025	December 31, 2024	Number of Shares (In Thousands)	%	Carrying Amount
The Corporation	SEC	Taipei City	Undertaking and installing of power engineering projects	$ 1,550,020	$ 1,550,020	142,709	100.00	$ 2,085,219	$ 354,258	$ 356,421 (Note 1)	Subsidiary (Note 5)
	TCIC	British Virgin Islands	Investment in foreign countries and international trading	685,374	685,374	22,260	100.00	154,561	(4,078)	(4,078)	Subsidiary (Note 5)
	TGE	Taipei City	Investment in green power plant	95,000	95,000	10,500	100.00	141,653	27,324	27,324	Subsidiary (Note 5)
	TYC	Taoyuan City	Cogeneration plants, management of operations, maintenance of equipment	214,240	214,240	35,834	29.31	587,750	224,816	65,895	Investee of the Corporation accounted for using the equity method
	Sun Ba	Tainan City	Power generation	3,073,500	3,073,500	516,000	43.00	6,693,065	1,399,681	601,863	Investee of the Corporation accounted for using the equity method
	KKPC	Taoyuan City	Power generation	5,594,802	1,775,426	496,668	45.83	5,588,611	417,716	108,909 (Note 2)	Investee of the Corporation accounted for using the equity method
	SEPC	Changhua County	Power generation	1,272,500	1,272,500	121,500	40.50	2,450,500	375,988	152,276	Investee of the Corporation accounted for using the equity method
	SBPC	Taipei City	Power generation	1,409,130	1,409,130	136,200	41.27	2,329,129	132,269	54,591	Investee of the Corporation accounted for using the equity method
	MWC	Taipei City	Power generation	673,608	673,608	51,400	100.00	736,274	(17,277)	(25,876) (Note 3)	Subsidiary (Note 5)
	HML	Changhua County	Power generation	103,130	103,130	10,000	100.00	(23,127)	(13,150)	(13,298) (Note 4)	Subsidiary (Note 5)
SEC	SWC	Changhua County	Power generation	517,870	517,870	51,787	100.00	554,160	57	57	Sub-subsidiary (Note 5)
	SSC	Taipei City	Power generation	240,000	240,000	24,000	100.00	224,543	9,704	9,704	Sub-subsidiary (Note 5)
TCIC	Redondo Peninsula Energy, Inc.	Philippines	Power generation	573,165	573,165	8,446	25.00	47,370	(1,332)	(333)	Investee of the Corporation's subsidiary accounted for using the equity method
TGE	SKE	Taipei City	Power generation	80,000	80,000	8,000	100.00	86,208	2,869	2,869	Sub-subsidiary (Note 5)

Note 1: It recognized share of profit of $354,258 thousand and plus the realized sales gross profit of $2,163 thousand.
Note 2: It recognized share of profit of $146,202 thousand and less the amortization of investment premium of $37,293 thousand.
Note 3: It recognized share of loss of $(17,277) thousand and less the amortization of investment premium of $8,599 thousand.
Note 4: It recognized share of loss of $(13,150) thousand and less the amortization of investment premium of $148 thousand.
Note 5: The amount was eliminated upon consolidation.

TABLE 5

TAIWAN COGENERATION CORPORATION AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025

(In Thousands of New Taiwan Dollars)

No. (Note 1)	Company Name	Counterparty	Relationship (Note 2)	Transaction Details			% of Consolidated Operating Revenues or Total Assets (Note 3)
				Financial Statement Account	Amount (Note 4)	Payment Terms (Note 5)
0	The Corporation	SEC	a	Operating, maintenance and consulting service revenue	$ 9,000	According to general terms and conditions	-
		TGE	a	Sales revenue	4,522	According to general terms and conditions	-
		TGE	a	Operating, maintenance and consulting service revenue	2,700	According to general terms and conditions	-
		TGE	a	Accounts receivable from related parties	1,969	According to general terms and conditions	-
		MWC	a	Operating, maintenance and consulting service revenue	1,650	According to general terms and conditions	-
1	SEC	The Corporation	b	Construction revenue	2,297,670	According to general terms and conditions	41
		The Corporation	b	Contract assets	764,851	According to general terms and conditions	3
		The Corporation	b	Accounts receivable from related parties	42,967	According to general terms and conditions	-
		SWC	c	Construction revenue	3,200	According to general terms and conditions	-
		SWC	c	Operating, maintenance and consulting service revenue	11,145	According to general terms and conditions	-
		SWC	c	Contract assets	12,158	According to general terms and conditions	-
		SWC	c	Contract liabilities	219,932	According to general terms and conditions	1
		SSC	c	Operating, maintenance and consulting service revenue	10,334	According to general terms and conditions	-
		SSC	c	Accounts receivable from related parties	13,037	According to general terms and conditions	-
MWC	c	Operating, maintenance and consulting service revenue	4,242	According to general terms and conditions	-
2	MWC	TGE	c	Sales revenue	162,531	According to general terms and conditions	3
		TGE	c	Accounts receivable from related parties	15,679	According to general terms and conditions	-
3	SWC	TGE	c	Sales revenue	45,140	According to general terms and conditions	1
		TGE	c	Accounts receivable from related parties	6,672	According to general terms and conditions	-
4	SKE	TGE	c	Sales revenue	22,211	According to general terms and conditions	-
		TGE	c	Accounts receivable from related parties	6,255	According to general terms and conditions	-
5	SSC	SEC	c	Operating, maintenance and consulting service revenue	1,232	According to general terms and conditions	-
		SEC	c	Accounts receivable from related parties	1,293	According to general terms and conditions	-
		SEC	c	Other receivables from related parties	1,362	According to general terms and conditions	-
		TGE	c	Sales revenue	69,816	According to general terms and conditions	1
		TGE	c	Accounts receivable from related parties	22,790	According to general terms and conditions	-
6	HML	The Corporation	b	Other receivables from related parties	3,816	According to general terms and conditions	-

Note 1: Significant transactions between the Corporation and its subsidiaries or among subsidiaries are numbered as follows:
a. "0" for the Corporation.
b. The subsidiaries are numbered consecutively beginning from "1" in the order presented in the table above.

(Continued)

Note 2: Related party transactions are divided into three categories as follows:

a. From the Corporation to the subsidiary.
b. From the subsidiary to the Corporation.
c. Between to subsidiaries.

Note 3: The percentage of consolidated operating revenues or consolidated total assets: For a balance sheet account, the percentage is calculated by dividing the ending balance of the account by consolidated total assets; for an income statement account, the percentage is calculated by dividing the accumulated amount in the current period of the account by the consolidated operating revenues.

Note 4: The amount was eliminated upon consolidation.

Note 5: The payment terms were negotiated based on each contract.

Note 6: The disclosure of significant transactions in this table determined by the principle of materiality of the Corporation.

(Concluded)

AI assistant

TCC — Interim / Quarterly Report 2025

52759_rns_2026-05-11_c22c76fa-c9fa-46eb-96d9-f7211b716f40.pdf

INDEPENDENT AUDITORS’ REVIEW REPORT

Introduction

Scope of Review

Conclusion

Emphasis of Matter

Notice to Readers

TAIWAN COGENERATION CORPORATION AND SUBSIDIARIES

TAIWAN COGENERATION CORPORATION AND SUBSIDIARIES

TAIWAN COGENERATION CORPORATION AND SUBSIDIARIES

TAIWAN COGENERATION CORPORATION AND SUBSIDIARIES

TAIWAN COGENERATION CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

TAIWAN COGENERATION CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

8. CREDIT RISK MANAGEMENT FOR INVESTMENTS IN DEBT INSTRUMENTS

9. NOTES RECEIVABLE AND ACCOUNTS RECEIVABLE

10. FINANCE LEASE RECEIVABLES

11. INVENTORIES

12. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

13. DISCONTINUED OPERATIONS

14. SUBSIDIARIES

15. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

17. LEASE ARRANGEMENTS

18. GOODWILL

19. INTANGIBLE ASSETS

20. OTHER ASSETS

21. BORROWINGS

22. BONDS PAYABLE

23. OTHER PAYABLES

24. OTHER LIABILITIES

25. PROVISIONS

26. RETIREMENT BENEFIT PLANS

27. MATURITY ANALYSIS OF ASSETS AND LIABILITIES

28. EQUITY

29. REVENUE

30. NET PROFIT

31. INCOME TAX

32. EARNINGS PER SHARE

33. DISPOSAL OF SUBSIDIARIES

34. PARTIAL CASH TRANSACTIONS

35. EXPLANATORY COMMENTS ABOUT THE SEASONALITY OR CYCLICALITY OF INTERIM OPERATIONS

36. CAPITAL MANAGEMENT

37. FINANCIAL INSTRUMENTS

38. RELATED PARTY TRANSACTIONS

39. ASSETS PLEDGED OR MORTGAGED AS COLLATERAL

40. SIGNIFICANT CONTINGENCIES AND UNRECOGNIZED COMMITMENTS

41. SIGNIFICANT EVENT AFTER THE REPORTING PERIOD

42. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

43. SEPARATELY DISCLOSED ITEMS

44. SEGMENT INFORMATION

TAIWAN COGENERATION CORPORATION AND SUBSIDIARIES

TAIWAN COGENERATION CORPORATION AND SUBSIDIARIES

TAIWAN COGENERATION CORPORATION AND SUBSIDIARIES

TAIWAN COGENERATION CORPORATION AND SUBSIDIARIES

TAIWAN COGENERATION CORPORATION AND SUBSIDIARIES

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TCC Interim / Quarterly Report 2025