Test-Rite International Co., Ltd.

Parent Company Only Financial Statements for the Years Ended December 31, 2025 and 2024 and Independent Auditors' Report

Deloitte.

勤業宣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 Nan 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' REPORT

The Board of Directors and Shareholders

Test-Rite International Co., Ltd.

Opinion

We have audited the accompanying parent company only financial statements of Test-Rite International Co., Ltd. (the "Company"), which comprise the parent company only balance sheets as of December 31, 2025 and 2024, and the parent company only statements of comprehensive income, changes in equity and cash flows for the years then ended, and the notes to the parent company only financial statements, including material accounting policy information (collectively referred to as the "parent company only financial statements").

In our opinion, the accompanying parent company only financial statements present fairly, in all material respects, the parent company only financial position of the Company as of December 31, 2025 and 2024, and its parent company only financial performance and its parent company only cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

We conducted our audits of the parent company only financial statements for the years ended December 31, 2025 and 2024 in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and the Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Parent Company Only Financial Statements section of our report. We are independent of the Company in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the parent company only financial statements for the year ended December 31, 2025. These matters were addressed in the context of our audit of the parent company only financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

The key audit matter of the Company’s parent company only financial statements for the year ended December 31, 2025 is described as follows:

Occurrence of Sales Revenue

In spite of the impact of global geopolitical conditions and uncertainties in trade policies, it still managed to grow against the trend in sales revenue from certain key customers in 2025, and considering the significant impact of such customers’ sales revenue on the parent company only financial statements, the validity of the sales revenue from these key customers is regarded as a key audit matter of the Company’s parent company only financial statements for the year ended December 31, 2025. For the accounting policies related to sales revenue, refer to Note 4 to the financial statements.

The audit procedures that we performed in response to the occurrence of sales revenue were as follows:

We obtained an understanding of the internal controls related to the occurrence of sales revenue, evaluated the design of the key controls, determined that the controls have been implemented and tested the operating effectiveness of the controls.
We selected samples from the sales revenue transactions of these customers and performed test of details to confirm the authenticity of the revenue transactions.
We checked the subsequent cash received from these customers and verified whether there were any significant sales returns after year-end.

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

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

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

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

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

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

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

Identify and assess the risks of material misstatement of the parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient and appropriate audit evidence regarding the financial information of entities or business activities within the Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision, and performance of the audit. We remain solely responsible for our audit opinion.

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements for the year ended December 31, 2025 and are therefore the key audit matters. We describe these matters in our auditors' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audits resulting in this independent auditors’ report are Chi-Ming Hsu and Kuo-Tyan Hong.

Deloitte & Touche
Taipei, Taiwan
Republic of China

March 11, 2026

Notice to Readers

The accompanying parent company only financial statements are intended only to present the 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 audit such parent company only financial statements are those generally applied in the Republic of China.

For the convenience of readers, the independent auditors’ report and the accompanying parent company only 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’ report and parent company only financial statements shall prevail.

TEST-RITE INTERNATIONAL CO., LTD.

PARENT COMPANY ONLY BALANCE SHEETS

DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	2025		2024
ASSETS	Amount	%	Amount	%
CURRENT ASSETS
Cash and cash equivalents (Notes 4 and 6)	$ 155,748	1	$ 769,754	4
Financial assets at fair value through profit or loss - current (Notes 4 and 7)	268,543	1	151,832	1
Financial assets at fair value through other comprehensive income - current (Notes 4 and 9)	-	-	43,000	-
Notes receivable (Notes 4 and 8)	5,163	-	7	-
Trade receivables (Notes 4 and 8)	2,152,835	11	3,147,530	15
Trade receivables - related parties (Notes 4 and 26)	3,808,801	19	3,310,166	15
Other receivables (Notes 4 and 26)	1,236,701	6	1,683,260	8
Current tax assets	22,333	-	20,754	-
Inventories	4,052	-	-	-
Prepayments	24,532	-	24,257	-
Other current assets	3	-	20	-
Total current assets	7,678,711	38	9,150,580	43
NON-CURRENT ASSETS
Financial assets at fair value through other comprehensive income - non-current (Notes 4 and 9)	98,955	1	346,833	2
Investments accounted for using the equity method (Notes 4 and 10)	10,699,032	52	10,075,174	47
Property, plant and equipment (Notes 4 and 11)	80,934	-	695,950	3
Right-of-use assets (Notes 4, 12 and 26)	135,930	1	114,932	-
Investment properties, net (Notes 4 and 13)	563,211	3	-	-
Other intangible assets (Note 4)	11,686	-	25,235	-
Deferred tax assets (Notes 4 and 19)	1,109,838	5	1,033,531	5
Refundable deposits (Note 26)	28,030	-	32,458	-
Net defined benefit assets - non-current (Notes 4 and 15)	4,918	-	-	-
Other non-current assets	1,940	-	1,419	-
Total non-current assets	12,734,474	62	12,325,532	57
TOTAL	$ 20,413,185	100	$ 21,476,112	100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term borrowings (Note 14)	$ 1,397,417	7	$ 927,170	4
Notes payable	3	-	3	-
Trade payables (Notes 21 and 26)	3,286,817	16	3,935,485	19
Other payables (Notes 4 and 26)	626,222	3	614,707	3
Current tax liabilities (Note 4)	35,462	-	52,887	-
Lease liabilities - current (Notes 4, 12 and 26)	60,164	-	50,035	-
Current portion of long-term borrowings (Note 14)	679,997	4	137,143	1
Other current liabilities	18,154	-	17,136	-
Total current liabilities	6,104,236	30	5,734,566	27
NON-CURRENT LIABILITIES
Long-term borrowings (Note 14)	7,171,412	35	8,444,449	39
Deferred tax liabilities - non-current (Notes 4 and 19)	74,253	-	69,287	1
Lease liabilities - non-current (Notes 4, 12 and 26)	76,737	1	68,266	-
Net defined benefit liabilities - non-current (Notes 4 and 15)	-	-	4,587	-
Guarantee deposits received	60	-	60	-
Total non-current liabilities	7,322,462	36	8,586,649	40
Total liabilities	13,426,698	66	14,321,215	67
EQUITY (Note 16)
Share capital
Ordinary shares	5,098,875	25	5,098,875	24
Capital surplus	195,060	1	2,446	-
Retained earnings
Legal reserve	1,503,762	7	1,468,218	7
Special reserve	148,098	1	295,167	1
Unappropriated earnings	207,656	1	356,397	2
Total retained earnings	1,859,516	9	2,119,782	10
Other equity	(166,964)	(1)	(66,206)	(1)
Total equity	6,986,487	34	7,154,897	33
TOTAL	$ 20,413,185	100	$ 21,476,112	100

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

TEST-RITE INTERNATIONAL CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

	2025		2024
	Amount	%	Amount	%
OPERATING REVENUE (Notes 4, 17 and 26)	$ 15,438,854	100	$ 17,399,523	100
OPERATING COSTS (Note 26)	13,684,804	89	15,257,526	88
GROSS PROFIT	1,754,050	11	2,141,997	12
UNREALIZED GAIN ON THE TRANSACTIONS WITH SUBSIDIARIES	(123,169)	(1)	(116,801)	(1)
REALIZED GAIN ON THE TRANSACTIONS WITH SUBSIDIARIES	116,801	1	107,081	1
REALIZED GROSS PROFIT	1,747,682	11	2,132,277	12
OPERATING EXPENSES (Note 26)
Selling and marketing expenses	1,397,588	9	1,617,763	9
General and administrative expenses	317,862	2	342,934	2
Expected credit loss	2,210	-	13	-
Total operating expenses	1,717,660	11	1,960,710	11
PROFIT FROM OPERATIONS	30,022	-	171,567	1
NON-OPERATING INCOME AND EXPENSES (Notes 18 and 26)
Interest income	37,760	-	36,935	-
Other income	49,402	-	85,102	1
Other gains and losses	224,795	2	152,182	1
Financial costs	(292,644)	(2)	(299,861)	(2)
Share of gain of subsidiaries and associates accounted for using the equity method	4,444	-	150,265	1
Total non-operating income and expenses	23,757	-	124,623	1
PROFIT BEFORE INCOME TAX	53,779	-	296,190	2
INCOME TAX BENEFIT (Notes 4 and 19)	61,422	1	35,521	-
NET PROFIT FOR THE YEAR	115,201	1	331,711	2
OTHER COMPREHENSIVE INCOME (LOSS)				(Continued)

TEST-RITE INTERNATIONAL CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

	2025		2024
	Amount	%	Amount	%
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit plans	3,729	-	(2,946)	-
Unrealized gain on investments in equity instruments at fair value through other comprehensive income	884	-	77,682	-
Share of other comprehensive gain of subsidiaries	17,282	-	14,330	-
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translating the financial statements of foreign operations	(39,221)	-	167,457	1
Other comprehensive income for the year, net of income tax	(17,326)	-	256,523	1
TOTAL COMPREHENSIVE INCOME FOR THE YEAR	$ 97,875	1	$ 588,234	3
EARNINGS PER SHARE (Notes 4 and 20)
Basic	$ 0.23		$ 0.66
Diluted	$ 0.23		$ 0.66

The accompanying notes are an integral part of the parent company only financial statements. (Concluded)

TEST-RITE INTERNATIONAL CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	Share (In Thousands)	Share Capital	Capital Surplus	Legal Reserve	Special Reserve	Unappropriated Earnings	Other Equity		Treasury Shares	Total
							Exchange Differences on Translating Foreign Operations	Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Comprehensive Income
BALANCE AT JANUARY 1, 2024	509,888	$ 5,098,875	$ 1,478	$ 1,443,608	$ 347,869	$ 270,214	$ (318,581)	$ 23,414	$ (313,256)	$ 6,553,621
Appropriation of 2023 earnings (Note 16)
Legal reserve	-	-	-	24,610	-	(24,610)	-	-	-	-
Cash dividends	-	-	-	-	-	(297,349)	-	-	-	(297,349)
Reversal of special reserve	-	-	-	-	(52,702)	52,702	-	-	-	-
Changes in associates and joint ventures for using the equity method	-	-	(4)	-	-	-	-	-	-	(4)
Acquisition or disposal of partial interest in subsidiaries	-	-	341	-	-	-	-	-	-	341
Changes in percentage of ownership interests in subsidiaries	-	-	631	-	-	(2,898)	-	-	-	(2,267)
Share-based payments (Note 22)	-	-	-	-	-	(935)	-	-	313,256	312,321
Net profit for the year ended December 31, 2024	-	-	-	-	-	331,711	-	-	-	331,711
Other comprehensive income for the year ended December 31, 2024	-	-	-	-	-	27,293	167,457	61,773	-	256,523
Total comprehensive income for the year ended December 31, 2024	-	-	-	-	-	359,004	167,457	61,773	-	588,234
Disposal of investments in equity instruments at fair value through other comprehensive income	-	-	-	-	-	269	-	(269)	-	-
BALANCE AT DECEMBER 31, 2024	509,888	5,098,875	2,446	1,468,218	295,167	356,397	(151,124)	84,918	-	7,154,897
Appropriation of 2024 earnings (Note 16)
Legal reserve	-	-	-	35,544	-	(35,544)	-	-	-	-
Cash dividends	-	-	-	-	-	(458,899)	-	-	-	(458,899)
Reversal of special reserve	-	-	-	-	(147,069)	147,069	-	-	-	-
Changes in associates and joint ventures for using the equity method	-	-	1,423	-	-	-	-	-	-	1,423
Changes in percentage of ownership interests in subsidiaries	-	-	191,191	-	-	-	-	-	-	191,191
Net profit for the year ended December 31, 2025	-	-	-	-	-	115,201	-	-	-	115,201
Other comprehensive income (loss) for the year ended December 31, 2025 (Note 10)	-	-	-	-	-	9,399	(39,221)	12,496	-	(17,326)
Total comprehensive income (loss) for the year ended December 31, 2025	-	-	-	-	-	124,600	(39,221)	12,496	-	97,875
Disposal of investments in equity instruments at fair value through other comprehensive income	-	-	-	-	-	74,033	-	(74,033)	-	-
BALANCE AT DECEMBER 31, 2025	509,888	$ 5,098,875	$ 195,060	$ 1,503,762	$ 148,098	$ 207,656	$ (190,345)	$ 23,381	$ -	$ 6,986,487

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

TEST-RITE INTERNATIONAL CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before income tax	$ 53,779	$ 296,190
Adjustments for:
Depreciation expense	117,369	138,827
Amortization expense	5,860	7,651
Expected credit loss recognized on trade receivables	2,210	13
Net (gain) loss on fair value changes of financial assets and liabilities designated as at fair value through profit or loss	(172,556)	10,732
Interest expense	292,644	299,861
Interest income	(37,760)	(36,935)
Dividend income	(1,675)	(1,948)
Share of gain of subsidiaries and associates accounted for using the equity method	(4,444)	(150,265)
Gain on disposal of property, plant and equipment	-	(48)
Gain on disposal of investments	(14,233)	(7,293)
Unrealized gain on the transactions with subsidiaries	123,169	116,801
Realized gain on the transactions with subsidiaries	(116,801)	(107,081)
Net gain on exchange treated as a deemed sale	(4,670)	-
Changes in operating assets and liabilities
Financial assets mandatorily classified as at fair value through profit or loss	60,744	(51,947)
Notes receivable	(5,156)	7
Trade receivables	992,485	(279,030)
Trade receivables from related parties	(498,635)	(386,888)
Other receivables	27,540	(17,583)
Inventories	(4,052)	-
Prepayments	(275)	36,566
Other current assets	17	(20)
Other operating assets	(521)	493
Trade payables	(648,668)	541,935
Other payables	28,319	40,300
Other current liabilities	1,225	9,926
Net defined benefit assets and liabilities	(5,776)	(5,451)
Cash generated from operations	190,139	454,813
Interest received	34,395	28,460
Dividend received from subsidiaries	206,977	177,732
Interest paid	(292,388)	(300,439)
Income tax paid	(28,923)	(115,927)
Net cash generated from operating activities	110,200	244,639
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of financial assets at fair value through other comprehensive income	(104,213)	-
		(Continued)

TEST-RITE INTERNATIONAL CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	2025	2024
Proceeds from sale of financial assets at fair value through other comprehensive income	67,918	6,433
Purchase of investments accounted for using the equity method	(353,043)	(954,902)
Proceeds from sale of investments accounted for using the equity method	34,695	-
Proceeds from capital reduction of investments accounted for using equity method	-	300,000
Payment for property, plant and equipment	(15,891)	(33,854)
Proceeds from disposal of property, plant and equipment	708	157
Decrease in refundable deposits	1,138	1,518
Decrease (increase) in other receivables - related parties	381,604	(287,988)
Payment for intangible assets	(4,949)	(3,347)
Proceeds from disposal of subsidiaries	63,630	-
Net cash generated from (used in) investing activities	71,597	(971,983)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term borrowings	470,247	22,170
Increase in short-term bills payable	-	3
Proceeds from long-term borrowings	26,403,082	20,354,539
Repayments of long-term borrowings	(27,133,265)	(18,939,564)
Repayment of the principal portion of lease liabilities	(76,968)	(74,686)
Dividends paid	(458,899)	(297,349)
Treasury shares purchased by employees	-	312,321
Net cash (used in) generated from financing activities	(795,803)	1,377,434
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(614,006)	650,090
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR	769,754	119,664
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	$ 155,748	$ 769,754

The accompanying notes are an integral part of the parent company only financial statements. (Concluded)

TEST-RITE INTERNATIONAL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

GENERAL INFORMATION

Test-Rite International Co., Ltd. (“Test-Rite” or the “Company”) was established in August 1978.

Test-Rite mainly imports and exports hand tools, auto parts, machinery, furniture, and various home appliances. Test-Rite’s marketplaces are primarily located in the United States of America, Canada, Great Britain, France, Germany, Australia, etc.

The Taiwan Securities and Futures Commission approved Test-Rite’s application for listing on the Taiwan Stock Exchange in February 1993.

The parent company only financial statements are presented in Test-Rite’s functional currency, the New Taiwan dollar.

APPROVAL OF PARENT COMPANY ONLY FINANCIAL STATEMENTS

The parent company only financial statements were approved by Test-Rite’s board of directors on March 11, 2026.

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 Financial Supervisory Commission (FSC).

Except for the following, the initial application of the IFRS Accounting Standards endorsed and issued into effect by the FSC did not have material impact on the Company’s accounting policies:

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 Company’s accounting policies.

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

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

1) The amendments to the application guidance of classification of financial assets

The amendments mainly amend the requirements for the classification of financial assets, including:

a) If a financial asset contains a contingent feature that could change the timing or amount of contractual cash flows and the contingent event itself does not relate directly to changes in basic lending risks and costs (e.g., whether the debtor achieves a contractually specified reduction in carbon emissions), the financial asset has contractual cash flows that are solely payments of principal and interest on the principal amount outstanding if, and only if,

In all possible scenarios (before and after the occurrence of a contingent event), the contractual cash flows are solely payments of principal and interest on the principal amount outstanding; and
In all possible scenarios, the contractual cash flows would not be significantly different from the contractual cash flows on a financial instrument with identical contractual terms, but without such a contingent feature.

b) To clarify that a financial asset has non-recourse features if an entity's ultimate right to receive cash flows is contractually limited to the cash flows generated by specified assets.

c) To clarify that the characteristics of contractually linked instruments include a prioritization of payments to the holders of financial assets using multiple contractually linked instruments (tranches) established through a waterfall payment structure, resulting in concentrations of credit risk and a disproportionate allocation of cash shortfalls from the underlying pool between the tranches.

2) The amendments to the application guidance of derecognition of financial liabilities

The amendments mainly stipulate that a financial liability is derecognized on the settlement date. However, when settling a financial liability in cash using an electronic payment system, the Company can choose to derecognize the financial liability before the settlement date if, and only if, the Company has initiated a payment instruction that resulted in:

The Company having no practical ability to withdraw, stop or cancel the payment instruction;
The Company having no practical ability to access the cash to be used for settlement as a result of the payment instruction; and
The settlement risk associated with the electronic payment system being insignificant.

An entity shall apply the amendments 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. An entity may restate prior periods if, and only if, it is possible to do so without the use of hindsight.

As of the date the parent company only financial statements were authorized for issue, the Company had assessed that the application of other standards and interpretations would not have a material impact on the Company's parent company only financial position and financial performance.

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

New, IFRS Accounting Standards	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
Amendments to IAS 21 “Translation to a Hyperinflationary Presentation Currency”	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.

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

The amendments stipulate that, when the Company sells or contributes assets that constitute a business (as defined in IFRS 3) to an associate or joint venture, the gain or loss resulting from the transaction is recognized in full. Also, when the Company loses control of a subsidiary that contains a business but retains significant influence or joint control, the gain or loss resulting from the transaction is recognized in full.

Conversely, when the Company sells or contributes assets that do not constitute a business to an associate or joint venture, the gain or loss resulting from the transaction is recognized only to the extent of the Company's interest as an unrelated investor in the associate or joint venture, i.e., the Company's share of the gain or loss is eliminated. Also, when the Company loses control of a subsidiary that does not contain a business but retains significant influence or joint control over an associate or a joint venture, the gain or loss resulting from the transaction is recognized only to the extent of the Company's interest as an unrelated investor in the associate or joint venture, i.e., the Company's share of the gain or loss is eliminated.

2) IFRS 18 "Presentation and Disclosure in Financial Statements" and consequential amendments

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

To classify items of income and expenses presented in the statement of profit or loss into the operating, investing, financing, income taxes and discontinued operations categories, the Company shall assess whether it has specified main business activities of investing in particular types of assets and providing financing to customers.

The parent company only 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.
To enhance its compliance with the requirements for aggregation and disaggregation, the Company 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 parent company only financial statements of line items that have at least one similar characteristic. The Company shall disaggregate items with dissimilar characteristics in the parent company only financial statements and in the notes. The Company labels items as “other” only if it cannot find a more descriptive label.
Disclosures on Management-defined Performance Measures (MPMs): When in public communications outside parent company only financial statements and communicating to users of parent company only financial statements management’s view of an aspect of the financial performance of the Company as a whole, the Company shall disclose related information about its MPMs in a single note to the parent company only 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.

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

The Company shall use operating profit or loss as the starting point when presenting cash flows from operating activities under the indirect method.
Interest and dividends received by the Company shall be classified as investing activities, while interest and dividends paid shall be classified as financing activities. However, if, after assessment, the Company has a specific main operating activity, it shall determine how to classify dividends received, interest received and interest paid in the statement of cash flows by referring to how it classifies dividend income, interest income and interest expense in the statement of profit or loss. The total of each of these cash flows shall be classified in a single category in the statement of cash flows.

Except for the above mentioned impact, as of the date the parent company only financial statements were authorized for issue, the Company was continuing to assess the other impacts of the above standards and interpretations on the Company’s financial position and financial performance and will disclose the relevant impact when the assessment is completed.

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

Statement of Compliance

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

Basis of Preparation

The parent company only financial statements have been prepared on the historical cost basis except for financial instruments that are measured at fair value, and net defined benefit liabilities that 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:

a. Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities;
b. 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
c. Level 3 inputs are unobservable inputs for the asset or liability.

When preparing these parent company only financial statements, the Company used the equity method to account for its investments in subsidiaries. In order for the amounts of the net profit for the year, other comprehensive income for the year and total equity in the parent company only financial statements to be the same as the amounts attributable to the owners of the Company in its consolidated financial statements, adjustments arising from the differences in accounting treatments between the parent company only basis and the consolidated basis were made to investments accounted for using the equity method, the share of profit or loss of subsidiaries, the share of other comprehensive income of subsidiaries and the related equity items, as appropriate, in these parent company only financial statements.

Classification of Current and Non-current Assets and Liabilities

Current assets include:

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

Current liabilities include:

a. Liabilities held primarily for the purpose of trading;
b. Liabilities due to be settled within 12 months after the reporting period; and
c. Liabilities for which the Company does not have an unconditional right to defer settlement for at least 12 months after the reporting period.

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

Foreign Currencies

In preparing the Company's the parent company only financial statements, transactions in currencies other than the Company's functional currency (i.e., foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.

At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Exchange differences on monetary items arising from settlement or translation are recognized in profit or loss in the period in which they arise.

Non-monetary items denominated in foreign currencies that are measured at fair value are retranslated at the rates prevailing at the date of fair value remeasurement, and exchange differences arising from this remeasurement are included in profit or loss for the period. But if a gain or loss on a non-monetary item is recognized in other comprehensive income, any foreign exchange component of that gain or loss is also recognized in other comprehensive income.

For the purpose of presenting the parent company only financial statements, the functional currencies of the Company and the Company entities (including subsidiaries in other countries that use currencies which are different from the currency of the Company) are translated into the presentation currency, the New Taiwan dollar, as follows: Assets and liabilities are translated at the exchange rates prevailing at the end of the reporting period; and income and expense items are translated at the average exchange rates for the period. The resulting currency translation differences are recognized in other comprehensive income (attributed to the owners of the Company and non-controlling interests as appropriate).

On the disposal of a foreign operation (i.e., a disposal of the Company's entire interest in a foreign operation, or a disposal involving the loss of control over a subsidiary that includes a foreign operation), all of the exchange differences accumulated in equity in respect of that operation attributable to the owners of the Company are reclassified to profit or loss.

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

Business Combinations Under Common Control/Loss of Control Over Business

Business combinations under common control are accounted for applying the book-value method. Comparative information of the prior period in the financial statements is restated as if the combination had already occurred.

Any disposal gain or loss due to the Company's disposal of the business that results in the loss of control over the business will not be recognized; instead, it will be recognized in equity. The Company elects not to restate the comparative information of the prior period and to discontinue the inclusion of the business in the parent company only financial statements from the date the Company loses its control.

Inventories

Inventories are stated at the lower of cost or net realizable value. Inventory write-downs are made by item, except where it may be appropriate to Company similar or related items. The net realizable value is the estimated selling price of inventories less all estimated costs necessary to make the sale. Inventories are recorded at the weighted-average cost on the balance sheet date.

Investments in Subsidiaries

The Company uses the equity method to account for its investments in subsidiaries.

A subsidiary is an entity (including a structured entity) that is controlled by the Company.

Under the equity method, an investment in a subsidiary is initially recognized at cost and adjusted thereafter to recognize the Company's share of the profit or loss and other comprehensive income of the subsidiary. The Company also recognizes the changes in the Company's share of equity of subsidiaries attributable to the Company.

Changes in the Company’s ownership interest in a subsidiary that do not result in the Company losing control of the subsidiary are accounted for as equity transactions. The Company recognizes directly in equity any difference between the carrying amount of the investment and the fair value of the consideration paid or received.

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

Any excess of the cost of acquisition over the Company’s share of the net fair value of the identifiable assets and liabilities of a subsidiary that constitutes a business at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment and is not amortized. Any excess of the Company’s share of the net fair value of the identifiable assets and liabilities of a subsidiary that constitutes a business over the cost of acquisition is recognized immediately in profit or loss.

The Company assesses its investment for any impairment by comparing the carrying amount with the estimated recoverable amount as assessed based on the investee’s financial statements as a whole. Impairment loss is recognized when the carrying amount exceeds the recoverable amount. If the recoverable amount of the investment subsequently increases, the Company recognizes a reversal of the impairment loss; the adjusted post-reversal carrying amount should not exceed the carrying amount that would have been recognized (net of amortization or depreciation) had no impairment loss been recognized in prior years. An impairment loss recognized on goodwill cannot be reversed in a subsequent period.

When the Company loses control of a subsidiary, it recognizes the investment retained in the former subsidiary at its fair value at the date when control is lost. The difference between the fair value of the retained investment plus any consideration received and the carrying amount of the previous investment at the date when control is lost is recognized as a gain or loss in profit or loss. Besides this, the Company accounts for all amounts previously recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required had the Company directly disposed of the related assets or liabilities.

Profit or loss resulting from downstream transactions is eliminated in full only in the parent company only financial statements. Profit and loss resulting from upstream transactions and transactions between subsidiaries is recognized only in the parent company only financial statements and only to the extent of interests in the subsidiaries that are not related to the Company.

Property, Plant and Equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost less accumulated depreciation and accumulated impairment loss.

The depreciation of property, plant and equipment is recognized using the straight-line method. Each significant part is depreciated separately. The estimated useful lives, residual values and depreciation methods are reviewed at the end of each reporting period, with the effect of any changes in the estimates accounted for on a prospective basis.

On derecognition of an item of property, plant and equipment, the difference between the sales proceeds and the carrying amount of the asset is recognized in profit or loss.

Investment Properties

Investment properties are properties held to earn rental or for capital appreciation. Investment properties also include land held for a currently undetermined future use.

Investment properties are initially measured at cost. Subsequent to initial recognition, investment properties are measured at cost less accumulated depreciation and accumulated impairment loss.

Depreciation is recognized using the straight-line method.

For a transfer of classification from property, plant and equipment to investment properties, the deemed cost of an item of property for subsequent accounting is its carrying amount at the end of owner-occupation.

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

Intangible Assets

Intangible assets with finite useful lives that are acquired separately are initially measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment loss. Amortization is recognized on a straight-line basis. The estimated useful life, residual value, and amortization method are reviewed at the end of each reporting period, with the effect of any changes in the estimates accounted for on a prospective basis.

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

Impairment of Property, Plant and Equipment, Right-of-use Asset, Investment Properties and Intangible Assets Other Than Goodwill and assets related to contract costs.

At the end of each reporting period, the Company reviews the carrying amounts of its property, plant and equipment, right-of-use asset, investment properties and intangible assets, excluding goodwill, to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating units to which the asset belongs. Corporate assets are allocated to the smallest Company of cash-generating units on a reasonable and consistent basis of allocation.

The recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount, with the resulting impairment loss recognized in profit or loss.

When an impairment loss is subsequently reversed, the carrying amount of the corresponding asset or cash-generating unit is increased to the revised estimate of its recoverable amount, but only to the extent of the carrying amount that would have been determined had no impairment loss been recognized for the asset or cash-generating unit in prior years. A reversal of an impairment loss is recognized in profit or loss.

Financial Instruments

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

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

a. Financial assets

All regular-way purchases or sales of financial assets are recognized and derecognized on a trade date basis.

1) Measurement categories

Financial assets are classified into the following categories: Financial assets at FVTPL, financial assets at amortized cost and investments in equity instruments at FVTOCI.

a) Financial assets at FVTPL

Financial assets at FVTPL are subsequently measured at fair value, with any gains or losses arising on remeasurement recognized in profit or loss. The net gain or loss recognized in profit or loss incorporates any dividends or interest earned on such a financial asset. Fair value is determined in the manner described in Note 25 to the parent company only financial statements.

b) Financial assets at amortized cost

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

i. The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and
ii. The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Subsequent to initial recognition, financial assets at amortized cost, including cash and cash equivalents, trade receivables at amortized cost are measured at amortized cost, which equals the gross carrying amount determined using the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

Interest income is calculated by applying the effective interest rate to the gross carrying amount of such a financial asset, except for:

i. Purchased or originated credit-impaired financial assets, for which interest income is calculated by applying the credit adjusted effective interest rate to the amortized cost of such financial assets; and
ii. A financial asset that is not credit impaired on purchase or origination but has subsequently become credit impaired, for which interest income is calculated by applying the effective interest rate to the amortized cost of such financial assets in subsequent reporting periods.

A financial asset is credit impaired when one or more of the following events occur:

i) The issuer or borrower has significant financial difficulty;
ii) There is breach of contract, such as a default;
iii) It is becoming probable that the borrower will enter bankruptcy or undergo a financial reorganization; or
iv) The active market for that financial asset disappears because of financial difficulties.

Cash equivalents include time deposits with original maturities within 3 months from the date of acquisition, which are highly liquid, readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These cash equivalents are held for the purpose of meeting short-term cash commitments.

c) Investments in equity instruments at FVTOCI

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

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

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

2) Impairment of financial assets

The Company recognizes a loss allowance for expected credit losses (ECLs) on financial assets at amortized cost (including trade receivables).

The Company always recognizes lifetime ECLs for trade receivables and lease receivable. For all other financial instruments, the Company recognizes lifetime ECLs when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on a financial instrument has not increased significantly since initial recognition, the Company measures the loss allowance for that financial instrument at an amount equal to 12-month ECLs.

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

For internal credit risk management purposes, the Company determines that the following situations indicate that a financial asset is in default (without taking into account any collateral held by the Company):

a) Internal or external information show that the debtor is unlikely to pay its creditors.

b) A financial asset is more than 90 days past due, unless the Company has reasonable and corroborative information to support a more lagged default criterion.

The impairment loss on all financial assets is recognized in profit or loss by a reduction in their carrying amounts through a loss allowance account.

3) Derecognition of financial assets

The Company derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss. On derecognition of an investment in an equity instrument at FVTOCI, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss, and the cumulative gain or loss which had been recognized in other comprehensive income is transferred directly to retained earnings, without recycling through profit or loss.

b. Financial liabilities

1) Subsequent measurement

Except financial liabilities at FVTPL, all the financial liabilities are measured at amortized cost using the effective interest method.

Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on remeasurement recognized in profit or loss.

2) Derecognition of financial liabilities

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

c. Derivative financial instruments

The Company enters into a variety of derivative financial instruments to manage its exposure to foreign exchange rate risks, including foreign exchange forward contracts.

Derivatives are initially recognized at fair value at the date on which the derivative contracts are entered into and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in profit or loss immediately. When the fair value of a derivative financial instrument is positive, the derivative is recognized as a financial asset; when the fair value of a derivative financial instrument is negative, the derivative is recognized as a financial liability.

Derivatives embedded in hybrid contracts that contain financial asset hosts that are within the scope of IFRS 9 are not separated; instead, the classification is determined in accordance with the entire hybrid contract. Derivatives embedded in non-derivative host contracts that are not financial assets that are within the scope of IFRS 9 (e.g., financial liabilities) are treated as separate derivatives when they meet the definition of a derivative; their risks and characteristics are not closely related to those of the host contracts; and the host contracts are not measured at FVTPL.

Provisions

Provisions are measured at the best estimate of the discounted cash flows of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

Revenue Recognition

The Company identifies contracts with customers, allocates the transaction price to the performance obligations and recognizes revenue when performance obligations are satisfied.

a. Revenue from the sale of goods

Revenue from the sale of goods comes from sales of furniture and various home appliances. Sales of furniture and various home appliances are recognized as revenue when the goods are shipped because it is the time when the customer has full discretion over price to sell the goods, has the primary responsibility for sales to future customers and bears the risks of obsolescence. Trade receivables are recognized concurrently.

b. Revenue from the rendering of services

Service income is recognized when services are provided.

Revenue from a contract to provide services is recognized with reference to the stage of completion of the contract.

Leases

At the inception of a contract, the Company assesses whether the contract is, or contains, a lease.

a. The Company as a lessor

Leases are classified as finance leases whenever the terms of a lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

When the Company subleases a right-of-use asset, the sublease is classified by reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. However, if the head lease is a short-term lease that the Company, as a lessee, has accounted for applying recognition exemption, the sublease is classified as an operating lease.

Lease payments from operating leases are recognized as income on a straight-line basis over the terms of the relevant leases.

b. The Company as a lessee

The Company recognizes right-of-use assets and lease liabilities for all leases at the commencement date of a lease, except for short-term leases and low-value asset leases accounted for applying a recognition exemption where lease payments are recognized as expenses on a straight-line basis over the lease terms.

Right-of-use assets are initially measured at cost, which comprises the initial measurement of lease liabilities adjusted for lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs needed to restore the underlying assets, and less any lease incentives received. Right-of-use assets are subsequently measured at cost less accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are presented on a separate line in the balance sheets.

Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms.

Lease liabilities are initially measured at the present value of the lease payments, which comprise fixed payments. The lease payments are discounted using the interest rate implicit in a lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses the lessee's incremental borrowing rate.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in a lease term, or a change in

future lease payments resulting from a change in an index used to determine those payments, the Group remeasures the lease liabilities with a corresponding adjustment to the right-of-use-assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. Lease liabilities are presented on a separate line in the balance sheets.

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

Government Grants

Government grants are not recognized until there is reasonable assurance that the Company will comply with the conditions attached to them and that the grants will be received.

Government grants related to income are recognized profit or loss on a systematic basis over the periods in which the Company recognizes as expenses the related costs that the grants intend to compensate. Specifically, government grants whose primary condition is that the Company should purchase, construct or otherwise acquire non-current assets are recognized as deferred revenue and transferred to profit or loss on a systematic and rational basis over the useful lives of the related assets.

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

The benefit of a government loan received at a below-market rate of interest is treated as a government grant measured as the difference between the proceeds received and the fair value of the loan based on prevailing market interest rates.

Employee Benefits

a. Short-term employee benefits

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

b. Retirement benefits

Payments to defined contribution retirement benefit plans are recognized as an expense when employees have rendered service entitling them to the contributions.

Defined benefit costs (including service costs, net interest and remeasurement) under defined benefit retirement benefit plans are determined using the projected unit credit method. Service costs (including current service cost) and net interest on the net defined benefit liabilities (assets) are recognized as employee benefits expenses in the period in which they occur. Remeasurement, comprising actuarial gains and losses and the return on plan assets (excluding interest), is recognized in other comprehensive income in the period in which it occurs. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.

Net defined benefit liabilities (assets) represent the actual deficit (surplus) in the Company's defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any refunds from the plans or reductions in future contributions to the plans.

Employee Share Options

The fair value at the grant date of the employee share options is expensed on a straight-line basis over the vesting period, based on the Company's best estimates of the number of shares or options that are expected

to ultimately vest, and the expense is recognized in full at the grant date if the grants are vested immediately, with a corresponding increase in capital surplus - employee share options.

Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

a. Current tax

According to the Income Tax Act, an additional tax at 10% of unappropriated earnings is provided for as income tax in the year the shareholders approve to retain earnings.

Adjustments of prior years' tax liabilities are added to or deducted from the current year's tax provision.

b. Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences and unused loss carryforward to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

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

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the assets to be recovered. A previously unrecognized deferred tax asset is also reviewed at the end of each reporting period and recognized to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liabilities are settled or the assets are realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Company'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.

The Company considers the possible impact of the international political and economic situation recent development in global and its economic environment implications when making its material accounting estimates on the cash flow projections, growth rate, discount rate, profitability and other relevant material estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to

accounting estimates are recognized in the period in which the estimates are revised if the revisions affect only that period or in the period of the revisions and future periods if the revisions affect both current and future periods.

6. CASH AND CASH EQUIVALENTS

	December 31
	2025	2024
Cash on hand	$ 6,104	$ 5,981
Checking accounts and demand deposits	149,644	763,773
	$ 155,748	$ 769,754

7. FINANCIAL INSTRUMENTS AT FVTPL

	December 31
	2025	2024
Financial assets mandatorily classified as at FVTPL - current
Derivative financial assets
Foreign exchange forward contracts	$ 172,330	$ 9,927
Non-derivative financial assets
Listed stock	28,434	30,634
Mutual funds	61,572	64,129
Corporate bonds	6,207	47,142
	$ 268,543	$ 151,832

Outstanding forward exchange contracts as of balance sheet dates were as follows:

	Currency	Maturity Period	Contract Amount (In Thousands)
December 31, 2025
Forward exchange contracts - sell	US$/NT$	2026.01.02-2026.07.07	US$261,400/NT$8,215,279
Forward exchange contracts - buy	US$/NT$	2026.01.05-2026.07.16	US$231,700/NT$7,281,868
December 31, 2024
Forward exchange contracts - sell	US$/NT$	2025.01.02-2025.03.27	US$124,000/NT$4,056,908
Forward exchange contracts - buy	US$/NT$	2025.01.07-2025.03.26	US$97,500/NT$3,189,908

The Company entered into derivative contracts to manage exposures to exchange rate fluctuations of foreign-currency denominated assets and liabilities. However, those contracts did not meet the criteria of hedge effectiveness and therefore were not accounted for using hedge accounting.

8. NOTES RECEIVABLE AND TRADE RECEIVABLES

	December 31
	2025	2024
Notes receivable
Notes receivable	$ 5,163	$ 7
Less: Allowance for impairment loss	-	-
	5,163	7
Trade receivables
At amortized cost
Gross carrying amount	2,083,996	2,946,015
Less: Allowance for impairment loss	(13,130)	(10,427)
	2,070,866	2,935,588
Financial assets at FVTOCI	81,969	211,942
	2,152,835	3,147,530
	$ 2,157,998	$ 3,147,537

a. At amortized cost

The Company insured a portion of its accounts receivable and periodically evaluated the collectability of such receivables based on their aging profile, customers' creditworthiness, and prevailing economic conditions. The average credit period of sales of goods was 90 days. No interest was charged on notes receivable or trade receivables. The Company adopted a policy of only dealing with entities that are rated the equivalent of investment grade or higher and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. Credit rating information is obtained from independent rating agencies where available or, if not available, the Company uses other publicly available financial information or its own trading records to rate its major customers. The Company's exposure and the credit ratings of its counterparties are continuously monitored and the aggregate value of transactions concluded is spread amongst approved counterparties. Credit exposure is controlled by counterparty limits that are reviewed and approved by the risk management committee annually.

In order to minimize credit risk, the management of the Company has delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In addition, the Company reviews the recoverable amount of each individual trade debt at the end of the reporting period to ensure that adequate allowance is made for possible irrecoverable amounts. In this regard, the management believes the Company's credit risk was significantly reduced.

The Company measures the loss allowance for notes receivable and trade receivables at an amount equal to lifetime ECLs. The expected credit losses on notes receivable and trade receivables are estimated by reference to past default experience of the debtor and an analysis of the debtor's current financial position. As the Company's historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status of notes receivable and trade receivables.

The Company writes off notes receivable or trade receivables when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery. For notes receivable or trade receivables that have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.

b. At FVTOCI

For trade receivables from some of the Company’s main customers, the Company will decide whether to sell these trade receivables to banks without recourse based on its level of working capital. These trade receivables are classified as at FVTOCI because they are held within a business model whose objective is achieved by both the collecting of contractual cash flows and the selling of financial assets.

The following table details the loss allowance of notes receivable and trade receivables based on the Company’s estimation by reference to past default experience of the debtor and an analysis of the debtor’s current financial position.

December 31, 2025

	Not Past Due	1 to 30 Days Past Due	31 to 60 Days Past Due	61 to 90 Days Past Due	91 to 365 Days Past Due	Over 365 Days Past Due	Total
Expected credit loss (ECL) rate	-	-	-	-	-	0%-100%
Gross carrying amount	$ 2,052,289	$ 86,879	$ 1,157	$ 1,303	$ 3,676	$ 25,824	$ 2,171,128
Loss allowance (lifetime ECLs)	-	-	-	-	-	(13,130)	(13,130)
Amortized cost	$ 2,052,289	$ 86,879	$ 1,157	$ 1,303	$ 3,676	$ 12,694	$ 2,157,998

December 31, 2024

	Not Past Due	1 to 30 Days Past Due	31 to 60 Days Past Due	61 to 90 Days Past Due	91 to 365 Days Past Due	Over 365 Days Past Due	Total
Expected credit loss (ECL) rate	-	-	-	-	-	0%-100%
Gross carrying amount	$ 2,933,299	$ 132,480	$ 44,029	$ 16,462	$ 18,025	$ 13,669	$ 3,157,964
Loss allowance (lifetime ECLs)	-	-	-	-	-	(10,427)	(10,427)
Amortized cost	$ 2,933,299	$ 132,480	$ 44,029	$ 16,462	$ 18,025	$ 3,242	$ 3,147,537

The movements of the loss allowance for notes receivable and trade receivables were as follows:

	For the Year Ended December 31
	2025	2024
Balance on January 1	$ 10,427	$ 10,414
Add: Net remeasurement of loss allowance	2,210	13
Add: Transfer	493	-
Balance on December 31	$ 13,130	$ 10,427

9. FINANCIAL ASSETS AT FVTOCI

Investments in Equity Instruments at FVTOCI

	December 31
	2025	2024
Domestic investments - listed shares	$ -	$ 43,000
Overseas investments - unlisted shares	98,955	346,833
	$ 98,955	$ 389,833
Current	$ -	$ 43,000
Non-current	$ 98,955	$ 346,833

The Company invests the aforementioned common stocks in accordance with long-term strategic objectives and expects to profit from long-term investments. The management of the Company deems if the short-term volatility at fair value of such investments recognized in profit or loss is not consistent with the aforementioned long-term investment plan, it will be determined that such investments are measured through other comprehensive income at fair value.

10. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

	December 31
	2025	2024
Investments in subsidiaries	$ 10,699,032	$ 10,075,174
a. Investments in subsidiaries
	December 31
	2025	2024
Fortune Miles Trading Inc.	$ 696	$ 724
Test-Rite Retailing Co., Ltd.	500,619	520,435
Test-Rite Trading Co., Ltd.	1,083,554	1,126,189
Upmaster International Co., Ltd.	106,166	101,920
Test-Rite Pte. Ltd.	77,469	78,022
Test-Rite Products (Hong Kong) Limited	49,572	52,040
Test-Rite Intl. (Australia) Pty. Limited	13,182	13,123
Test Rite Int'l. (Canada) Ltd.	271	338
Test-Rite (UK) Ltd.	12,250	33,476
Test-Rite Development GmbH	490,385	585,493
Test-Rite International (U.S.) Co., Ltd.	1,425,217	1,345,806
Lucky Rite Company Ltd.	114,789	115,362
Hampton Products International Corporation	619,939	-
Lih Chiou Co., Ltd.	3,655,946	3,402,685
Lih Teh International Co., Ltd.	102,899	94,637
B&S Link Co., Ltd.	25,909	24,490
Fusion International Distribution Inc.	86,302	22,096
Chung Cin Enterprise Co., Ltd.	1,255,948	1,279,718
		(Continued)

	December 31
	2025	2024
International Art Enterprise Co., Ltd.	$ 98,997	$ 100,992
Test-Rite Retail Co., Ltd.	528,278	473,045
HOLA Furnishing Co., Ltd.	13,479	214,850
Testrite Brand Agency Co., Ltd.	336,230	419,641
Hoi Living International Co., Ltd.	100,935	70,092
	$ 10,699,032	$ 10,075,174
		(Concluded)

The proportion of ownership and voting rights is as follows:

	December 31
	2025	2024
Fortune Miles Trading Inc.	100.00%	100.00%
Test-Rite Retailing Co., Ltd.	100.00%	100.00%
Test-Rite Trading Co., Ltd.	100.00%	100.00%
Upmaster International Co., Ltd.	100.00%	100.00%
Test-Rite Pte Ltd.	100.00%	100.00%
Test-Rite Products (Hong Kong) Limited	100.00%	100.00%
Test-Rite Intl. (Australia) Pty. Limited	100.00%	100.00%
Test Rite Int'l. (Canada) Ltd.	100.00%	100.00%
Test-Rite (UK) Ltd.	100.00%	100.00%
Test-Rite Development GmbH	100.00%	100.00%
Test-Rite International (U.S.) Co., Ltd.	94.40%	94.40%
Lucky Rite Company Ltd.	100.00%	100.00%
Hampton Products International Corporation	23.20%	13.38%
Lih Chiou Co., Ltd.	100.00%	100.00%
Lih Teh International Co., Ltd.	100.00%	100.00%
B&S Link Co., Ltd.	100.00%	100.00%
Fusion International Distribution Inc.	100.00%	100.00%
Chung Cin Enterprise Co., Ltd.	91.67%	91.67%
International Art Enterprise Co., Ltd.	100.00%	100.00%
Test-Rite Retail Co., Ltd.	17.60%	25.00%
HOLA Furnishing Co., Ltd.	51.06%	51.06%
Testrite Brand Agency Co., Ltd.	100.00%	100.00%
Hoi Living International Co., Ltd.	100.00%	100.00%

b. Fortune Miles Trading Inc. is engaged mainly in the investment of computer peripheral equipment.
c. Test-Rite Retailing Co., Ltd. is engaged mainly in the investment of retail business.
d. Test-Rite Trading Co., Ltd., Upmaster International Co., Ltd., Test-Rite Development GmbH and Test-Rite International (U.S.) Co., Ltd. are engaged mainly in the investment of the import and export trading business.
e. Test-Rite Pte Ltd., Test-Rite Products (Hong Kong) Limited, Test-Rite Intl. (Australia) Pty. Limited, Test Rite Int'l. (Canada) Ltd., Test-Rite (UK) Ltd., Hampton Products International Corporation and Fusion International Distribution Inc. are engaged mainly in importation and exportation of goods.
f. International Art Enterprise Co., Ltd. is engaged mainly in trading of leisure goods.

g. Lih Chiou Co., Ltd. is engaged mainly in the investment of various business.
h. Lih Teh International Co., Ltd. is engaged mainly in the investment of various business.
i. B&S Link Co., Ltd. is engaged mainly in providing software and electronic information.
j. Chung Cin Enterprise Co., Ltd. is engaged mainly as an authorized builder to build dwelling, as well as sale of hardware and groceries.
k. Test-Rite Retail Co., Ltd. is engaged mainly in the sale of improvement-related products and services. On April 15, 2025, Test Rite Retail Co., Ltd. conducted a cash capital increase. As the Company did not subscribe in proportion to its shareholding, and subsequently disposed of 600 thousand shares of Test Rite Retail Co., Ltd. in October 2025, its ownership interest decreased from 25% to 17.60%.
l. In February 2024, the Company acquired 100% equity interest in HOLA Furnishing Co., Ltd. from Test Rite Retail Co., Ltd. Subsequently, in May 2024, the Company did not participate in the cash capital increase of HOLA Furnishing Co., LTD. in proportion to its shareholding, resulting in a reduction of its ownership from 100% to 51.06%. HOLA Furnishing Co., Ltd. is engaged mainly in the sale of the retail of furniture, bedding, kitchen utensils and fittings.
m. In June 2024, the Company acquired 100% equity interest in Testrite Brand Agency Co., Ltd. from Test Rite Retail Co., Ltd. Testrite Brand Agency Co., Ltd. is engaged mainly in the sale of the wholesale and retail of furniture, bedding, kitchen utensils and fittings.
n. In June 2024, the Company acquired 100% equity interest in Hoi Living International Co., Ltd. from Test Rite Retail Co., Ltd. Hoi Living International Co., Ltd. is engaged mainly in the sale of the retail of furniture, bedding, kitchen utensils and fittings.
o. In August 2025, the Company acquired 409,091 shares of Hampton Products International Corporation from non-related parties, increasing its shareholding from 13.38% to 23.66%. Following the re-election of the board of directors in November 2025, the Company obtained controlling seats and achieved control. Subsequently, the exercise of employee stock options diluted the Company's ownership interest to 23.20%. Hampton Products International Corporation is principally engaged in the import, manufacturing, and wholesale of hardware and lock products.
p. The investments in subsidiaries accounted for using the equity method and the share of profit or loss and other comprehensive income of those investments for the years ended December 31, 2025 and 2024 were based on the subsidiaries' financial statements which have been audited for the same year.

11. PROPERTY, PLANT AND EQUIPMENT

	Land	Buildings and Improvements	Furniture, Fixtures and Office Equipment	Leasehold Improvements	Miscellaneous Equipment	Construction in Progress and Equipment under Installation	Total
Cost
Balance on January 1, 2024	$ 267,519	$ 610,294	$ 127,117	$ 104,185	$ 91,407	$ 4,746	$ 1,205,268
Additions	-	-	279	23,446	7,086	1,084	31,895
Disposals	-	-	(1,224)	(1,691)	(2,898)	-	(5,813)
Reclassified	-	-	-	-	-	(4,285)	(4,285)
Balance on December 31, 2024	$ 267,519	$ 610,294	$ 126,172	$ 125,940	$ 95,595	$ 1,545	$ 1,227,065

(Continued)

	Land	Buildings and Improvements	Furniture, Fixtures and Office Equipment	Leasehold Improvements	Miscellaneous Equipment	Construction in Progress and Equipment under Installation	Total
Accumulated depreciation
Balance on January 1, 2024	$ -	$ 283,226	$ 66,163	$ 61,895	$ 71,128	$ -	$ 482,412
Depreciation expense	-	15,689	6,934	22,914	8,870	-	54,407
Disposals	-	-	(1,224)	(1,691)	(2,789)	-	(5,704)
Reclassified	-	-	-	-	-	-	-
Balance on December 31, 2024	$ -	$ 298,915	$ 71,873	$ 83,118	$ 77,209	$ -	$ 531,115
Carrying amount on December 31, 2024	$ 267,519	$ 311,379	$ 54,299	$ 42,822	$ 18,386	$ 1,545	$ 695,950
Cost
Balance on January 1, 2025	$ 267,519	$ 610,294	$ 126,172	$ 125,940	$ 95,595	$ 1,545	$ 1,227,065
Additions	-	-	1,937	3,289	3,365	4,231	12,822
Disposals	-	-	(9,692)	(46,399)	(11,568)	-	(67,659)
Effect of spin-off business	-	-	(57,573)	(17,399)	(6,564)	-	(81,536)
Reclassified	(267,519)	(610,294)	-	-	1,062	-	(876,751)
Balance on December 31, 2025	$ -	$ -	$ 60,844	$ 65,431	$ 81,890	$ 5,776	$ 213,941
Accumulated depreciation
Balance on January 1, 2025	$ -	$ 298,915	$ 71,873	$ 83,118	$ 77,209	$ -	$ 531,115
Depreciation expense	-	6,536	5,430	14,237	7,180	-	33,383
Disposals	-	-	(9,692)	(46,399)	(10,860)	-	(66,951)
Effect of spin-off business	-	-	(46,863)	(8,153)	(4,134)	-	(59,150)
Reclassified	-	(305,451)	-	-	61	-	(305,390)
Balance on December 31, 2025	$ -	$ -	$ 20,748	$ 42,803	$ 69,456	$ -	$ 133,007
Carrying amount on December 31, 2025	$ -	$ -	$ 40,096	$ 22,628	$ 12,434	$ 5,776	$ 80,934

The property, plant and equipment of the Company are depreciated on a straight-line basis over their estimated useful lives as follows:

Buildings and improvements 35-40 years
Furniture, fixtures and office equipment 5-20 years
Leasehold improvements 3-6 years
Miscellaneous equipment 1-6 years

12. LEASE ARRANGEMENTS

a. Right-of-use assets

	December 31
	2025	2024
Carrying amount
Office buildings	$ 133,384	$ 114,166
Others	2,546	766
	$ 135,930	$ 114,932

	For the Year Ended December 31
	2025	2024
Additions to right-of-use assets	$ 135,560	$ 22,249
Depreciation charge for right-of-use assets
Office buildings	$ 73,136	$ 82,955
Others	1,699	1,465
	$ 74,835	$ 84,420

b. Lease liabilities

	December 31
	2025	2024
Carrying amount
Current	$ 60,164	$ 50,035
Non-current	$ 76,737	$ 68,266

Range of discount rates for lease liabilities was as follows:

	For the Year Ended December 31
	2025	2024
Office buildings	1.90%-1.95%	1.30%-1.90%
Others	1.90%-2.35%	1.30%-1.70%

c. Material leasing activities and terms

On November 12, 2024, the Company’s board of directors approved to early terminate the Neihu office lease agreement with the related party Tsai Wang Enterprise Company Limited through its subsidiary Le-Joy Innovation Co., Ltd and sublease it to the Company. Starting from January 2025, the Company will directly signed a lease agreement with Tsai Wang Enterprise Company Limited directly to obtain the right-of-use asset. The Company did not enter into significant new lease agreements in 2025.

13. INVESTMENT PROPERTIES

	Investment Properties
Cost
Balance on January 1, 2025	$ -
Transfers from property, plant and equipment	877,813
Balance on December 31, 2025	$ 877,813
	(Continued)

Investment Properties

Accumulated depreciation

Balance on January 1, 2025
Transfers from property, plant and equipment
Depreciation expenses

Balance on December 31, 2025
Carrying amount on December 31, 2025

$ -
305,451
9,151

$ 314,602

$ 563,211
(Concluded)

The investment properties are depreciated using the straight-line method over their estimated useful lives as follows:

Buildings
35-40 years

The total lease payments to be received in the future for leasing out investment properties under operating leases are as follows:

December 31, 2025

Year 1
$ 87,508

Year 2
88,383

Year 3
89,266

Year 4
90,159

Year 5
37,722

$ 393,038

In May 2025, the Company reclassified its Yangmei warehouse, previously used for self-operations, as an investment property held for lease. The fair value of the property was determined by an independent valuation firm, based on market evidence from comparable property transactions, and was approximately $2,697,295 thousand as of December 31, 2025.

The investment properties were leased out for 5 years. The lessees do not have bargain purchase options to acquire the investment properties at the end of the lease terms.

14. BORROWINGS

December 31

	2025	2024
Short-term borrowings	$ 1,397,417	$ 927,170
Current portion of long-term borrowings	$ 679,997	$ 137,143
Long-term borrowings	$ 7,171,412	$ 8,444,449

a. Short-term borrowings as of December 31, 2025 and 2024 were as follows:

	December 31
	2025	2024
Unsecured borrowings
Line of credit borrowings	$ 1,397,417	$ 927,170

The weighted average effective interest rates for bank short-term borrowings were 0.9852% to 4.5032% and 1.895% to 5.3066% per annum as of December 31, 2025 and 2024, respectively.

b. Long-term borrowings

Lending Institution	Loan Tenure	Interest Rate	Collateral	December 31, 2025
First Commercial Bank’s syndicated loan	2022.11.22-2027.11.22	2.1789%-5.0106%	No	$ 4,921,420
Hua Nan Bank	2025.04.18-2027.04.18	5.00%	No	314,280
Bank of Taiwan	2024.05.15-2026.05.15	2.1600%-5.0000%	No	388,568
Taiwan Business Bank	2025.04.09-2028.04.09	4.955003%	No	125,712
Export-Import Bank of the Republic of China	2020.05.05-2026.05.05	2.0190%	No	21,429
Taishin International Bank Co., Ltd.	2025.06.20-2027.06.20	2.1600%	No	270,000
SinoPac Bank	2025.10.30-2027.10.31	2.1100%	No	750,000
KGI Bank	2025.08.27-2027.08.27	2.1200%	No	600,000
Yuanta Bank	2024.09.02-2027.09.01	2.050000%	No	260,000
Far Eastern Bank	2025.10.27-2027.10.27	2.1258%	No	200,000
Less: Current portion				(679,997)
				$ 7,171,412
Lending Institution	Loan Tenure	Interest Rate	Collateral	December 31, 2024
First Commercial Bank’s syndicated loan	2022.11.22-2027.11.22	2.1704%-5.8351%	No	$ 5,447,869
Hua Nan Bank	2024.04.12-2027.04.12	5.69%	No	490,755
Bank of Taiwan	2024.04.15-2027.04.15	2.1115%-6.0148%	No	379,944
Taiwan Business Bank	2023.03.15-2026.03.15	5.9820%	No	294,453
Export-Import Bank of the Republic of China	2019.05.16-2025.05.16	2.019%	No	94,286
Export-Import Bank of the Republic of China	2020.05.05-2026.05.05	1.9662%	No	64,285
SinoPac Bank	2024.10.11-2026.10.31	2.1%	No	750,000
KGI Bank	2024.09.02-2026.09.02	2.11890%-2.111%	No	600,000
Yuanta Bank	2024.09.02-2027.09.01	2.02%-2.1%	No	260,000
Far Eastern Bank	2024.10.28-2026.10.28	2.1258%	No	200,000
Less: Current portion				(137,143)
				$ 8,444,449

The Company promised to maintain the following financial covenants according to the loan agreements as of December 31, 2025 and 2024:

1) First Commercial Bank Syndicated Loan

a) For the Financial Liabilities Ratio, the Company shall maintain a ratio of Financial Liabilities to Tangible Net Equity of no more than 1.5 to 1.
b) For the Current Ratio, the Company shall maintain a ratio of Current Assets to Current Liabilities of no less than 1 to 1.
c) For the Interest Coverage Ratio (including depreciation, amortization, and interest expenses), Test-Rite shall maintain a ratio no less than 2.5 to 1.
d) For the Minimum Tangible Net Equity, the Company shall maintain Tangible Net Equity of no less than $5,200,000 thousand.

e) The calculations of the ratios are based on the Company’s annual parent company only financial statements.

2) Taishin Bank Loan

a) For the Financial Liabilities Ratio, the Company shall maintain a ratio of Financial Liabilities to Tangible Net Equity of no more than 1.5 to 1.

b) For the Current Ratio, the Company shall maintain a ratio of Current Assets to Current Liabilities of no less than 1 to 1.

c) For the Interest Coverage Ratio (including depreciation, amortization, and interest expenses), Test-Rite shall maintain a ratio no less than 2.5 to 1.

d) For the Minimum Tangible Net Equity, the Company shall maintain Tangible Net Equity of no less than $5,200,000 thousand.

e) The calculations of the ratios are based on the Company’s annual parent company only financial statements.

3) SinoPac Bank Loan

a) For the Financial Liabilities Ratio, Test-Rite shall maintain a ratio of Financial Liabilities to Tangible Net Equity of no more than 1.5 to 1.

b) For the Current Ratio, Test-Rite shall maintain a ratio of Current Assets to Current Liabilities of no less than 1 to 1.

c) For the Interest Coverage Ratio (including depreciation, amortization, and interest expenses), Test-Rite shall maintain a ratio no less than 2.5 to 1.

d) For the Minimum Tangible Net Equity, Test-Rite shall maintain Tangible Net Equity of no less than $5,200,000 thousand.

e) The calculations of the ratios are based on the Company’s parent company only financial statements for each year ended December 31.

4) The Company was in compliance with the terms of the above bank loans in 2024.

5) During the year ended December 31 2025, the Company breached certain terms of its long-term loan arrangement of First Commercial Bank’s syndicated loan, which are primarily related to the interest coverage ratio of the Company. At December 31, 2025, the carrying amount of the bank loan was $4,921,420 thousand. According to the syndicated loan agreement, the Company is required to improve certain financial ratios in the next test if the Company is not in compliance with the financial covenants at first test, however, the annual interest rate should be increased by an additional 0.1 percentage point. Therefore, the syndicated loan bank did not immediately requested a repayment when the syndicated loan agreement was breached for the first time in 2025.

6) During the year ended December 31 2025, the Company breached certain terms of its long-term loan arrangement of SinoPac Bank loan, which are primarily related to the interest coverage ratio of the Company. At December 31, 2025, the carrying amount of the bank loan was $750,000 thousand. According to the loan agreement, the Company is required to maintain certain financial ratios. If the Company is not in compliance with the financial covenants, the Company should pay additional interest on the annual interest rate. Therefore, the lender has no right to demand immediate repayment at the end of reporting period.

7) During the year ended December 31 2025, the Company breached certain terms of its long-term loan arrangement of Taishin Bank, which are primarily related to the interest coverage ratio of the Company. At December 31, 2025, the carrying amount of the bank loan was $270,000 thousand. As Taishin Bank had not waived its right to demand repayment as of the balance sheet date, the Company classified these borrowings as current liabilities as of December 31, 2025, and subsequently repaid the borrowings to Taishin Bank.

8) The Group assesses that the above breach of the loan agreement terms will not have a material impact on the Group’s financial costs and liquidity.

15. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

The Company adopted a pension plan under the Labor Pension Act (LPA), which is a state-managed defined contribution plan. Under the LPA, an entity makes monthly contributions to employees’ individual pension accounts at 6% of monthly salaries and wages.

b. Defined benefit plans

The defined benefit plan adopted by the Company in accordance with the Labor Standards Act is operated by the government of the Republic of China (ROC). Pension benefits are calculated on the basis of the length of service and average monthly salaries of the 6 months before retirement. The Company contributes amounts equal to 4% of total monthly salaries and wages to a pension fund administered by the pension fund monitoring committee. Pension contributions are deposited in the Bank of Taiwan in the committee’s name. The pension fund is managed by the Bureau of Labor Funds, Ministry of Labor (the “Bureau”); the Company has no right to influence the investment policy and strategy.

The amounts included in the balance sheets in respect of the Company’s defined benefit plans were as follows:

	December 31
	2025	2024
Present value of defined benefit obligation	$ 28,017	$ 30,753
Fair value of plan assets	(32,935)	(26,166)
Deficit	(4,918)	4,587
Net defined benefit (assets) liabilities	$ (4,918)	$ 4,587

Movements in net defined benefit liabilities (assets) were as follows:

	Present Value of the Defined Benefit Obligation	Fair Value of the Plan Assets	Net Defined Benefit Liabilities (Assets)
Balance on January 1, 2024	$ 27,042	$ (19,950)	$ 7,092
Net interest expense (income)	338	(256)	82
Recognized in profit or loss	338	(256)	82
Remeasurement
Return on plan assets (excluding amounts included in net interest)	-	(427)	(427)
Actuarial gain - changes in financial assumptions	(1,261)	-	(1,261)
Actuarial gain - experience adjustments	4,634	-	4,634
Recognized in other comprehensive income	3,373	(427)	2,946
Contributions from the employer	-	(5,533)	(5,533)
Benefits paid	-	-	-
Pay off	-	-	-
Balance on December 31, 2024	30,753	(26,166)	4,587
Net interest expense (income)	500	(439)	61
Recognized in profit or loss	500	(439)	61
Remeasurement
Return on plan assets (excluding amounts included in net interest)	-	(990)	(990)
Actuarial gain - changes in financial assumptions	686	-	686
Actuarial gain - experience adjustments	(3,425)	-	(3,425)
Recognized in other comprehensive income	(2,739)	(990)	(3,729)
Contributions from the employer	-	(5,837)	(5,837)
Benefits paid	(497)	497	-
Pay off	-	-	-
Balance on December 31, 2025	$ 28,017	$ (32,935)	$ (4,918)

An analysis by function of the amounts recognized in profit or loss in respect of the defined benefit plans is as follows:

	For the Year Ended December 31
	2025	2024
Operating expenses	$ 61	$ 82

Through the defined benefit plans under the Labor Standards Act, the Company is exposed to the following risks:

1) Investment risk: The plan assets are invested in domestic and foreign equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the Bureau or under the mandated management. However, in accordance with relevant regulations, the return generated by plan assets should not be below the interest rate for a 2-year time deposit with local banks.

2) Interest risk: A decrease in the government bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the plan's debt investments.

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

The actuarial valuations of the present value of the defined benefit obligation were carried out by qualified actuaries. The significant assumptions used for the purposes of the actuarial valuations were as follows:

	December 31
	2025	2024
Discount rate	1.375%	1.63%
Expected rate of salary increase	3.000%	3.00%

If possible reasonable change in each of the significant actuarial assumptions occurs and all other assumptions remain constant, the present value of the defined benefit obligation will increase (decrease) as follows:

	December 31
	2025	2024
Discount rate
0.25% increase	$ (686)	$ (805)
0.25% decrease	$ 708	$ 833
Expected rate of salary increase
0.25% increase	$ 684	$ 806
0.25% decrease	$ (666)	$ (782)

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

	December 31
	2025	2024
Expected contributions to the plan for the next year	$ 1,633	$ 1,760
Average duration of the defined benefit obligation	9.9 years	10.6 years

16. EQUITY

a. Share capital

	December 31
	2025	2024
Number of shares authorized (in thousands)	750,000	750,000
Shares authorized	$ 7,500,000	$ 7,500,000
Number of shares issued and fully paid (in thousands)	509,888	509,888
Shares issued	$ 5,098,875	$ 5,098,875

Fully paid ordinary shares, which have a par value of $10, carry one vote per share and carry a right to dividends.

b. Capital surplus

	December 31
	2025	2024
May be used to offset a deficit, distributed as cash dividends, or transferred to share capital (1)
Issuance of ordinary shares	$ 360	$ 360
Difference between actual and book value of acquisition or disposal of the subsidiary's equity price	341	341
May only be used to offset a deficit (2)
Changes in percentage of ownership interests in subsidiaries	194,359	1,745
	$ 195,060	$ 2,446

1) Such capital surplus may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of the Company's capital surplus and to once a year).

2) Such capital surplus arises from the effects of changes in ownership interests in subsidiaries resulting from equity transactions other than actual disposals or acquisitions or from changes in capital surplus of subsidiaries accounted for using the equity method.

c. Retained earnings and dividends policy

As the Company's industrial environment is affected by a wide range of variables, the Company adopted a balanced dividends policy. Under the dividends policy as set forth in the amended Articles, where the Company 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 a 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 Company's board of directors as the basis for proposing a distribution plan, which should be resolved in the shareholders' meeting for the distribution of dividends and bonuses to shareholders. Above dividends, legal reserve and capital surplus, which is distributed by cash, the Company authorizes the distribution after a resolution has been adopted by a majority vote at a meeting of the board of directors attended by two-thirds of the total number of directors; and in addition thereto a report of such distribution shall be submitted to the shareholders' meeting. For the policies on the distribution of employees' compensation and remuneration of directors after the amendment, refer to employees' compensation and remuneration of directors in Note 18-f to the parent company only financial statements.

The Company's dividends policy shall consider the Company's business diversification, capital needs for future operational plan, along with the shareholder's benefits, and the Company's long-term financial plans. The shareholder's dividends are appropriated based on accumulated distributable earnings, which shall not be lower than 50% of the distributable earnings for the periods and the cash dividends shall not be less than 10% of the shareholders dividend. However, if cash dividends per share are less than $0.1, share dividends could be all distributed instead of cash dividends.

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

The appropriations of earnings for 2024 and 2023 were as follows:

	Appropriation of Earnings		Dividends Per Share (NT$)
	For the Year Ended December 31		For the Year Ended December 31
	2024	2023	2024	2023
Legal reserve	$ 35,544	$ 24,610	$ -	$ -
Reversal of special reserve	(147,069)	(52,702)	-	-
Cash dividends	458,899	297,349	0.90	0.60

The above appropriations for cash dividends were resolved by the Company's board of directors on March 12, 2025 and March 13, 2024, respectively, the other appropriations for 2024 and 2023 were resolved by the shareholders meeting on May 28, 2025 and May 30, 2024, respectively.

The appropriation of earnings for 2025 was proposed by the Company's board of directors on March 11, 2026. The appropriations and dividends per share were as follows:

	Appropriation of Earnings	Dividends Per Share (NT$)
Legal reserve	$ 19,863	$ -
Special reserve	18,866	-
Cash dividends	168,927	0.33

The above appropriation for cash dividends was resolved by the Company's board of directors; the other proposed appropriations will be resolved by the shareholders in their meeting to be held on May 27, 2026.

On March 11, 2026, the Company's board of directors resolved to distribute cash dividends of $111,513 thousand from the legal reserve.

d. Other equity items

1) Exchange differences on translating the financial statements of foreign operations

Exchange differences relating to the translation of the results and net assets of the Company's foreign operations from their functional currencies to the Company's presentation currency (New Taiwan dollars) were recognized directly in other comprehensive income and accumulated in a foreign currency translation reserve. Exchange differences previously accumulated in the foreign currency translation reserve were reclassified to profit or loss on the disposal of foreign operations.

2) Unrealized gain (loss) on financial assets at FVTOCI

Unrealized gain (loss) on financial assets at FVTOCI was accumulated gains and losses recognized in other comprehensive income when investments in equity instruments at FVTOCI were subsequently measured at fair value. Unrealized gain (loss) on financial assets at FVTOCI was not reclassified to other gains and losses when those financial instruments were disposed of.

e. Treasury shares

Purpose of Treasury Share	Number of Shares at January 1	Increase During the Year	Decrease During the Year	Number of Shares at December 31
2024
Shares transferred to employees	14,306	-	14,306	-

The Company acquired 14,306 thousand treasury shares of treasury stock in fiscal year 2019 and had fully transferred the shares to employees in May 2024. Under the Securities and Exchange Act, the Company shall neither pledge treasury shares nor exercise shareholders' rights on these shares, such as the rights of earnings distribution and voting.

REVENUE

	For the Year Ended December 31
	2025	2024
Revenue from contracts with customers
Revenue from sale of goods	$ 14,839,327	$ 16,709,448
Other operating revenue	599,527	690,075
	$ 15,438,854	$ 17,399,523

NET PROFIT FROM CONTINUING OPERATIONS

a. Interest income

	For the Year Ended December 31
	2025	2024
Bank deposits	$ 7,082	$ 11,068
Others	30,678	25,867
	$ 37,760	$ 36,935

b. Other income

	For the Year Ended December 31
	2025	2024
Dividend income	$ 1,675	$ 1,948
Management service revenue	1,307	34,756
Subsidy revenue	22,209	30,864
Others	24,211	17,534
	$ 49,402	$ 85,102

c. Other gains and losses

	For the Year Ended December 31
	2025	2024
Gain on disposal of financial assets	$ 14,233	$ 7,293
Net foreign exchange gains	65,619	165,193
Fair value changes of financial assets and financial liabilities designated at FVTPL	172,556	(10,732)
Gain on lease modifications	241	20,020
Others	(27,854)	(29,592)
	$ 224,795	$ 152,182

d. Financial cost

	For the Year Ended December 31
	2025	2024
Interest on lease liabilities	$ 3,421	$ 4,265
Bank loan interest expense	289,223	295,596
	$ 292,644	$ 299,861

e. Employee benefits, depreciation and amortization expenses

Refer to Statement 13 to the parent company only financial statements.

f. Compensation of employees and remuneration of directors

According to the Company's Articles, the Company accrues compensation of employees and remuneration of directors at rates of no less than 1% and no higher than 2% respectively, of net profit before income tax, respectively. The compensation of employees and the remuneration of directors and supervisors. In accordance with the amendments to the Securities and Exchange Act in August 2024, the shareholders of the Company resolved the amendments to the Company's Articles at their 2025 regular meeting. The amendments explicitly stipulate the allocation of 15% of the compensation of employees as compensation distributions for Entry-Level employees. The compensation of employees (including Entry-Level employees) and the remuneration of directors and supervisors for the years ended December 31, 2025 and 2024, which were approved by the Company's board of directors on March 11, 2026 and March 12, 2025, respectively, are as follows:

Accrual rate

	For the Year Ended December 31
	2025	2024
Compensation of employees	1.0%	1.0%
Remuneration of directors	1.5%	1.5%
Amount
	For the Year Ended December 31
	2025	2024
Compensation of employees	$ 552	$ 3,038
Remuneration of directors	827	4,557

If there is a change in the amounts after the annual financial statements are authorized for issue, the differences are recorded as a change in the accounting estimate.

There is no difference between the actual amounts of compensation of employees and remuneration of directors paid and the amounts recognized in the parent company only financial statements for the years ended December 31, 2025 and 2024.

Information on the compensation of employees and remuneration of directors resolved by the Company's board of directors for 2025 and 2024 is available at the Market Observation Post System website of the Taiwan Stock Exchange.

19. INCOME TAX

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

	For the Year Ended December 31
	2025	2024
In respect of the current period	$ (45,650)	$ (13,358)
Adjustments for deferred tax assets	(12,428)	(26,009)
Adjustments for prior periods	(3,344)	3,846
Income tax expense recognized in profit or loss	$ (61,422)	$ (35,521)

b. A reconciliation of accounting profit and income tax expense is as follows:

	For the Year Ended December 31
	2025	2024
Profit before tax
Income tax expense calculated at the statutory rate	$ 10,756	$ 59,238
Tax effect of reconciled items:
Permanent differences	(56,406)	(71,383)
Adjustments for deferred tax assets	(12,428)	(27,222)
Adjustments for prior periods	(3,344)	3,846
Income tax benefit recognized in profit or loss	$ (61,422)	$ (35,521)

c. Deferred tax assets and liabilities

	December 31
	2025	2024
Deferred tax assets
Temporary difference
Share of losses of subsidiaries accounted for using the equity method	$ 1,062,279	$ 992,526
Allowance for compensation losses	7,727	3,482
Allowance for doubtful accounts	13,394	12,200
Allowance for sales returns and discounts	1,489	1,645
Others	24,949	23,678
	$ 1,109,838	$ 1,033,531
		(Continued)

	December 31
	2025	2024
Deferred tax liabilities
Financial assets at FVTPL	$ 36,625	$ 1,938
Net defined benefit liabilities	33,098	31,874
Unrealized exchange gains	4,530	35,475
	$ 74,253	$ 69,287
		(Concluded)

d. Income tax assessments

The income tax returns of Test-Rite through 2023 have been examined and approved by the tax authorities.

20. EARNINGS PER SHARE

For the years ended December 31, 2025 and 2024, the amounts of earnings per share were calculated as follows:

	2025
	Amount (Numerator) Parent Co. Shareholders Income After Tax	Number of Shares (Denominator) (In Thousands)	EPS (NT$) Parent Co. Shareholders Income After Tax
Basic earnings per share
Net income to shareholders of ordinary shares	$ 115,201	509,888	$ 0.23
The effects of dilutive potential ordinary shares Compensation to employees	-	55
Diluted earnings per share
Net income to shareholders of ordinary shares and the effects of potential ordinary shares	$ 115,201	509,943	$ 0.23

	2024
	Amount (Numerator)		EPS (NT$)
	Parent Co. Shareholders Income After Tax	Number of Shares (Denominator) (In Thousands)	Parent Co. Shareholders Income After Tax
Basic earnings per share
Net income to shareholders of ordinary shares	$331,711	503,204	$0.66
The effects of dilutive potential ordinary shares
Compensation to employees	-	181
Diluted earnings per share
Net income to shareholders of ordinary shares and the effects of potential ordinary shares	$331,711	503,385	$0.66

The Company may settle the compensation or bonuses paid to employees in cash or shares; therefore, the Company assumes that the entire amount of the compensation or bonuses will be settled in shares, and the resulting potential shares will be 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.

21. SPIN-OFF OF BUSINESS

To implement professional specialization of functions, enhance overall operational performance, and strengthen the Company's competitiveness, the Company's board of directors approved on April 15, 2025, the transfer of related operations (including assets and liabilities) of the logistics segment to Test Home Co., Ltd., a wholly-owned subsidiary. The effective date of the transfer was May 31, 2025. On the effective date, the Company lost control over the transferred segment. The transferred segment constituted a business combination under common control. In accordance with the IFRS Q&A issued by the Accounting Research and Development Foundation, R.O.C., and related interpretative rulings, the transaction was accounted for using the book value method.

a. Consideration received from spin-off

	Spin-off of the Logistics Segment
Consideration received in cash and cash equivalents	$63,630

b. Analysis of assets and liabilities on the date control was lost

	Spin-off of the Logistics Segment
Current assets
Other receivables	$ 42,219
Non-current assets
Property, plant and equipment	22,386
Right-of-use assets	30,867
Other intangible assets	10,198
Refundable deposits	3,290
Current liabilities
Other payables	(13,991)
Lease liabilities - current	(16,252)
Other current liabilities	(207)
Non-current liabilities
Lease liabilities - non-current	(14,880)
	$ 63,630
c. Looss on spin-off of segment
	Spin-off of the Logistics Segment
Consideration received	$ 63,630
Net assets spun off	(63,630)
Loss on spin-off	$ -
d. Net cash inflow on spin-off
	Spin-off of the Logistics Segment
Consideration received in cash and cash equivalents	$ 63,630
Less: Cash and cash equivalent balances spun off	-
Net cash inflow on spin-off	$ 63,630

22. SUPPLIER FINANCE ARRANGEMENTS

The Company has entered into a supplier finance arrangements, under which suppliers may choose to assign their receivables from the Company to a bank. The Company will then make payments to the bank according to the original payment schedule. Since the payment periods have not been extended and no additional interests will be paid, the payment terms have not materially changed, and therefore, the amounts are still recorded as trade payables. The balances of trade payables under supplier financing arrangements were $1,862,186 thousand and $2,319,040 thousand as of December 31, 2025, and December 31, 2024, respectively.

The carrying amount of the financial liabilities under the supplier finance arrangements and the amounts received by suppliers from financing providers are as follows:

	For the Year Ended December 31
	2025	2024
Trade payables
Supplier received from the financing provider	$ 1,079,511	$ 1,191,378

The payment due dates for the financial liabilities that are subject to supplier finance arrangements and comparable trade payables that are not part of a supplier finance arrangement are as follows:

	For the Year Ended December 31
	2025	2024
Trade payables
Involved in supplier financing arrangements	30-180 days	30-120 days
Comparable liabilities not involved in supplier financing arrangements	30-180 days	30-120 days

23. SHARE-BASED PAYMENT ARRANGEMENTS

In May 2024, the Company's board of directors approved the transfer of the Company's 14th and 15th treasury stock, totaling 9,271 thousand shares and 5,035 thousand shares, respectively, to employees. The transfer price was based on the average repurchase price of each batch. The transferees were employees of controlled or affiliated companies who met certain eligibility criteria, and May 13, 2024, was designated as the record date for the stock transfer.

24. CAPITAL MANAGEMENT

The objective of the Company's capital management is to ensure it has the necessary financial resource and operational plan so that it can cope with the next twelve months working capital requirements, capital expenditures and dividends spending.

25. FINANCIAL INSTRUMENTS

Fair Value of Financial Instruments

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

The management considers that the carrying amounts of financial assets and financial liabilities not carried at fair value approximate their fair value. As of December 31, 2025 and 2024, the carrying amounts approximate their fair value.

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

1) Fair value hierarchy

December 31, 2025

	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Derivative financial assets	$ -	$ 172,330	$ -	$ 172,330
Non-derivative financial assets	$ 96,213	$ -	$ -	$ 96,213
Financial assets at FVTOCI
Investments in equity instruments	$ -	$ -	$ 98,955	$ 98,955
December 31, 2024
	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Derivative financial assets	$ -	$ 9,926	$ -	$ 9,926
Non-derivative financial assets	$ 141,906	$ -	$ -	$ 141,906
Financial assets at FVTOCI
Investments in equity instruments	$ 43,000	$ -	$ 346,833	$ 389,833

There were no transfers between Levels 1 and 2 in the current and prior periods.

2) Valuation techniques and inputs applied for Level 2 fair value measurement

Derivative instruments - forward exchange contracts are discounted using the cash flow method. Future cash flows are estimated based on observable forward exchange rates at the end of the year and contract forward rates, discounted at a rate that reflects the credit risk of various counterparties.

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

Equity investments in unlisted domestic and foreign companies are accounted for using the equity method. The Company has determined that there is no material difference between their carrying amounts and fair values.

c. Categories of financial instruments

The carrying amounts and fair values of the Company’s financial assets and financial liabilities as of December 31, 2025, and December 31, 2024, are as follows:

	December 31
	2025		2024
	Carrying Amount	Market Value	Carrying Amount	Market Value
Financial assets
Financial assets at amortized cost (Note 1)	$ 7,387,278	$ 7,387,278	$ 8,943,175	$ 8,943,175
Financial assets at FVTPL - current	268,543	268,543	151,832	151,832
Financial assets at FVTOCI - current and non-current	98,955	98,955	389,833	389,833
Financial liabilities
Financial liabilities at amortized cost (Note 2)	13,161,928	13,161,928	14,059,017	14,059,017

1) The balances include financial assets at amortized cost, which comprise cash and cash equivalents, notes receivable, trade receivables (including related parties), other receivables and refundable deposits.

2) The balances include financial liabilities at amortized cost, which comprise short-term borrowings, notes payable, trade and other payables, long-term borrowings (including current portion) and guarantee deposits received.

Financial Risk Management Objectives and Policies

The Company’s major financial instruments include equity and debt investments, borrowings, trade receivables and trade payables. The Company’s corporate treasury function provides services to the business, coordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the Company through internal risk reports which analyze exposures by degree and magnitude of risks. These risks include market risk, credit risk and liquidity risk.

The Company sought to minimize the effects of these risks by using derivative financial instruments to hedge risk exposures. The use of financial derivatives was governed by the Company’s policies approved by the board of directors, which provided written principles on foreign exchange risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments, and the investment of excess liquidity. Compliance with policies and exposure limits was reviewed by the internal auditors on a continuous basis. The Company did not enter into or trade financial instruments for speculative purposes.

a. Market risk

The Company’s activities exposed it primarily to the financial risks of changes in foreign currency exchange rates and interest rates risk. The Company entered into a variety of derivative financial instruments to manage its exposure to foreign currency risk, including forward foreign exchange contracts to hedge the exchange rate risk arising on the export.

There had been no change to the Company’s exposure to market risks or the manner in which these risks were managed and measured.

1) Foreign currency risk

The Company had foreign currency sales and purchases, which exposed the Company to foreign currency risk. Exchange rate exposures were managed within approved policy parameters utilizing forward foreign exchange contracts.

The carrying amounts of the Company’s foreign currency denominated monetary assets and monetary liabilities (see Note 29 to the parent company only financial statements).

The sensitivity analysis included only outstanding foreign currency denominated monetary items, and the effect on profit and loss by their translation at the end of the reporting period for a 1% change in foreign currency rates. When foreign currency assets exceed foreign currency liabilities and other equity associated with New Taiwan dollars depreciated 1% against the relevant currency. The following table indicates an increase in pre-tax profit. For a 1% appreciation of New Taiwan dollars against the relevant currency, there would be an equal and opposite impact on pre-tax profit and the balances below would be negative.

USD Impact
For the Year Ended December 31
	2025	2024
Foreign currency assets - liabilities equity	$ 11,460	$ 10,922

2) Interest rate risk

The Company’s is exposed to interest rate risk because entities in the Company’s borrow funds at floating interest rates. The risk is managed by the Company’s by maintaining an appropriate mix of floating rate borrowings. Hedging activities are evaluated regularly to align with interest rate views and defined risk appetites ensuring the most cost-effective hedging strategies are applied.

The carrying amounts of the Company’s financial assets and financial liabilities with exposure to interest rates at the end of the reporting period were as follows:

December 31
	2025	2024
Cash flow interest rate risk
Financial assets	$ -	$ -
Financial liabilities	9,248,826	9,508,762

The sensitivity analyses were calculated by a change in fair value of the fixed interest rates financial assets and liabilities at the end of the reporting period.

If interest rates at end of the reporting period were higher by 100 base-points and all other variables were held constant, the Company’s cash outflow for the years ended December 31, 2025 and 2024 would have been increased by $92,488 thousand and $95,088 thousand, respectively.

b. Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. As at the end of the reporting period, the Company’s maximum exposure to credit risk which will cause a financial loss to the Company due to failure of counterparties to discharge an obligation and financial guarantees provided by the Company could arise from:

1) The carrying amount of the respective recognized financial assets as stated in the balance sheets; and
2) The amount of contingent liabilities in relation to financial guarantee issued by the Company.

The Company’s transactions with significant counterparties require sufficient collateral or other pledged rights as security, so that it could minimize credit risk effectively. Management of the Company has delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In addition, the Company reviews the recoverable amount of each individual trade debt at the end of the reporting period to ensure that adequate allowances are made for irrecoverable amounts. In this regard, management believes the Company’s credit risk was significantly reduced.

The credit risk on liquid funds and derivatives was limited because the counterparties are banks with high credit ratings assigned by international credit-rating agencies.

The Company transacted with a large number of customers among different industries and geography area. Ongoing credit evaluation is performed based on the financial condition of trade receivables and, where appropriate, credit guarantee insurance cover is purchased.

c. Liquidity risk

The Company manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Company’s operations and mitigate the effects of fluctuations in cash flows. The Company’s management monitors the utilization of bank borrowings and ensures compliance with loan covenants.

The Company’s non-derivative financial liabilities with their agreed repayment period were as follows:

	December 31, 2025
	1 Year	2-3 Years	3+ Years	Total
Non-derivative financial liabilities
Non-interest bearing	$ 3,913,102	$ -	$ -	$ 3,913,102
Variable interest rate liabilities	2,077,414	7,171,412	-	9,248,826
Lease liabilities	60,164	50,367	26,370	136,901
	$ 6,050,680	$ 7,221,779	$ 26,370	$ 13,298,829
Non-derivative financial liabilities
Non-interest bearing	$ 4,550,255	$ -	$ -	$ 4,550,255
Variable interest rate liabilities	1,064,313	8,444,449	-	9,508,762
Lease liabilities	50,035	35,920	32,346	118,301
	$ 5,664,603	$ 8,480,369	$ 32,346	$ 14,177,318

26. TRANSACTIONS WITH RELATED PARTIES

Names and relationships of the related parties are outlined as follows:

Name	Relationship
Chung Cin Enterprise Co., Ltd.	Subsidiary
Test-Rite Retail Co., Ltd.	Subsidiary
Test-Rite Home Service Co., Ltd.	Subsidiary
International Art Enterprise Co., Ltd.	Subsidiary
Test-Rite Products (Hong Kong) Limited	Subsidiary
Test-Rite (UK) Ltd.	Subsidiary
Test Cin M&E Engineering Co., Ltd.	Subsidiary
Tony Construction Co., Ltd.	Subsidiary
Chung Cin Interior Design Construction Co., Ltd.	Subsidiary
Le-Joy Innovation Co., Ltd	Subsidiary
American Customer Service, LLC.	Subsidiary
Test-Rite Products Corp.	Subsidiary
Homezone Int'l Corp (U.S.A.)	Subsidiary
Test-Rite Tepro GmbH	Subsidiary
Test-Rite Business Development	Subsidiary
Testrite Brand Agency Co., Ltd	Subsidiary
Hoi Living International Co., Ltd	Subsidiary
Fusion International Distribution Inc.	Subsidiary
Hampton Products International Corporation	Associate (it was the subsidiary of the Company but has become an associate since November 2025)
U-ME Enterprise Co., Ltd.	Associate (it was the subsidiary of the Company but has become an associate since November 2024)
Test-On Lighting Technology Co., Ltd.	Associate (it was the subsidiary of the Company but has become an associate since November 2024)
Avida Company Limited	Subsidiary
Tsai Wang Enterprise Company Limited	Entity controlled by key management personnel
Li Xiong Co., Ltd.	Entity controlled by key management personnel
Tsai Ye Enterprise Company Limited	Entity controlled by key management personnel
Joint Well Inc Limited	Entity controlled by key management personnel
TAKkare Co., Ltd	Entity controlled by key management personnel
Up Master Investment Co., Ltd.	Entity controlled by key management personnel
Shutterfly International Window Fashions Company Limited	Related party in substance
Robin Ho	Director of Test-Rite
Judy Lee	Chairman of Test-Rite
Quanxin Logistics Co., Ltd.	Subsidiary of associate

a. Operating transactions

	For the Year Ended December 31
	2025	2024
Sales
Test-Rite Products Corp.	$ 2,962,794	$ 3,406,116
Subsidiaries	1,600,230	899,924
	$ 4,563,024	$ 4,306,040

The Company sold goods to foreign related parties by T/T collection, the collection days were T/T 180 days to 360 days, and if the amount due from the related party had exceeded 3 months of the credit period, it was reclassified to other receivables.

	For the Year Ended December 31
	2025	2024
Other operating income
Test-Rite Retail Co., Ltd.	$ 61,566	$ 128,829
Subsidiaries	157,164	99,032
Entity controlled by key management personnel	23,747	983
Associate	56	-
Related party in substance	105	-
	$ 242,638	$ 228,844

The other operating income received by the Company from the above-mentioned related parties was based on market price.

	For the Year Ended December 31
	2025	2024
Purchase
Subsidiaries	$ 193,150	$ 202,733
Other operating cost
Subsidiaries	$ -	$ 1,935
Operating expense
Test-Rite Business Development	$ 593,586	$ 648,684
Subsidiaries	156,490	181,926
Subsidiary of associate	573	-
Associate	9,465	-
Entity controlled by key management personnel	2,887	6,463
Related party in substance	(33)	176
	$ 762,968	$ 837,249

	For the Year Ended December 31
	2025	2024
Non-operating income and expense
Test-Rite Retail Co., Ltd.	$ 2,044	$ 23,462
Subsidiaries	12,891	13,364
Entity controlled by key management personnel	478	230
	$ 15,413	$ 37,056
	December 31
	2025	2024
Trade receivable to related parties
Test-Rite Products Corp.	$ 2,931,469	$ 2,749,645
Homezone Int'l Corp (U.S.A)	434,687	444,682
Subsidiaries	442,645	115,839
	$ 3,808,801	$ 3,310,166
Other receivables to related parties
HOLA Furnishing Co., Ltd.	$ 21,685	$ 47,134
Test-Rite Retail Co., Ltd.	6,002	41,375
Test-Rite Products Corp.	65,778	3,456
Subsidiaries	23,227	81,041
Entity controlled by key management personnel	6,024	226
	$ 122,716	$ 173,232
Refundable deposits
Tsai Wang Enterprise Company Limited	$ 10,024	$ 10,942
Entity controlled by key management personnel	4,084	4,083
	$ 14,108	$ 15,025
Trade payables to related parties
Subsidiaries	$ 10,649	$ 13,382
Other payables to related parties
Test-Rite Business Development	$ 198,541	$ 99,601
Test-Rite Products Corp.	110,576	90,872
Subsidiaries	133,617	135,021
Associate	773	-
Entity controlled by key management personnel	-	52
	$ 443,507	$ 325,546

Loans to related parties

Related Party Category/Name	December 31
	2025	2024
HOLA Furnishing Co., Ltd.	$ 875,000	$ 750,000
Test-Rite Products Corp.	-	392,604
Subsidiaries	-	114,000
	$ 875,000	$ 1,256,604

Interest revenue was summarized as follows:

	For the Year Ended December 31
Related Party Category/Name	2025	2024
HOLA Furnishing Co., Ltd.	$ 18,318	$ 8,963
Test-Rite Products Corp.	6,088	7,885
Subsidiaries	3,251	5,745
	$ 27,657	$ 22,593

The Company provided the subsidiaries with an unsecured short-term loan at market interest rates. These loans are expected to be recovered within one year; therefore, no expected credit losses were recognized.

Disposal of property, plant and equipment

	Proceeds		Gain (Loss) on Disposal
	For the Year Ended December 31		For the Year Ended December 31
Related Party Category/Name	2025	2024	2025	2024
B&S Link Co., Ltd.	$ 680	$ -	$ -	$ -
Subsidiaries	22	-	-	-
	$ 708	$ -	$ -	$ -

Tenancy agreement

Items	Related Party Category/Name	December 31
		2025	2024
Acquisition of right-of-use assets	Tsai Wang Enterprise Company Limited	$ 118,155	$ -
Lease liabilities	Tsai Wang Enterprise Company Limited	$ 79,719	$ -
	Entity controlled by key management personnel	5,733	13,216
	Subsidiaries	8,336	16,318
		$ 93,788	$ 29,534

Interest expense was summarized as follows:

	For the Year Ended December 31
Related Party Category/Name	2025	2024
Tsai Wang Enterprise Company Limited	$ 1,831	$ -
Entity controlled by key management personnel	174	316
Subsidiaries	230	2,254
	$ 2,235	$ 2,570

b. Endorsements or guarantees

Endorsements or guarantees provided by the Company to subsidiaries were summarized in Note 27 to the parent company only financial statements.

As of December 31, 2025, the short-term loan of $1,197,417 thousand was guaranteed by the chairman of the Company (Judy Lee).

As of December 31, 2025, the long-term loan of $7,829,980 thousand was guaranteed by the chairman of the Company (Judy Lee).

As of December 31, 2024, the short-term loan of $727,170 thousand was guaranteed by the chairman of the Company (Judy Lee).

As of December 31, 2024, the long-term loan of $8,423,020 thousand was guaranteed by the chairman of the Company (Judy Lee).

c. Organizations reorganization

For descriptions of organizations reorganization for the current year, please refer to Note 21.

d. Remuneration of key management personnel

	For the Year Ended December 31
	2025	2024
Short-term employee benefits	$ 61,259	$ 62,963
Post-employment benefits	1,410	1,537
	$ 62,669	$ 64,500

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

27. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

Endorsements/Guarantees Provided

As of December 31, 2025 and 2024, endorsements or guarantees provided by the Company to its business-related legal entities were summarized as follows:

(Unit: Foreign Currencies/New Taiwan Dollars In Thousands)

	December 31
	2025	2024
Endorsements
Test-Rite Tepro GmbH	EUR 15,000	EUR 15,000
Test-Rite Products Corp.	US$ 32,000	US$ 12,000
Test-Rite Pte Ltd.	US$ 2,000	US$ 2,000
Hoi Living International Co., Ltd	NT$ 8,553	NT$ -
Test-Rite Business Development	CNY 55,000	CNY 30,000

28. SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD

In line with the future initial public offering plan of its subsidiary, Chung Cin Enterprise Co., Ltd., the board of directors of the Company resolved to proceed with the share release process on March 11, 2026.

29. EXCHANGE RATE OF FINANCIAL ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The Company’s significant foreign currency-denominated assets and liabilities are as follows:

(Unit: In Thousands of Foreign Currencies/New Taiwan Dollars)

	December 31
	2025			2024
	Foreign Currency	Exchange Rate	New Taiwan Dollar	Foreign Currency	Exchange Rate	New Taiwan Dollar
Financial assets
Monetary items
USD	$ 202,242	31.428	$ 6,356,062	$ 225,749	32.717	$ 7,385,830
EUR	57	36.888	2,103	155	34.2714	5,312
Investments accounted for using the equity method
USD	121,346	31.428	3,813,660	96,986	32.717	3,173,096
EUR	13,294	36.888	490,385	17,084	34.2714	585,493
Financial liabilities
Monetary items
USD	165,777	31.428	5,210,040	192,365	32.717	6,293,606
EUR	-	36.888	-	8	34.2714	274
CNY	44,280	4.4838	198,543	22,108	4.5053	99,603

For the years ended December 31, 2025 and 2024, realized and unrealized net foreign exchange gains were detailed in Note 18 to the parent company only financial statements, respectively. It is impractical to disclose net foreign exchange gains (losses) by each significant foreign currency due to the variety of the foreign currency transactions and functional currencies of the Company.

30. SEPARATELY DISCLOSED ITEMS

a. Information about significant transactions and:

1) Financing provided to others (Table 1)
2) Endorsements/guarantees provided (Table 2)
3) Significant marketable securities held (excluding investments in subsidiaries, associates and joint ventures) (None)
4) Marketable securities acquired or disposed of at costs or prices of at least NT$300 million or 20% of the paid-in capital (None)
5) Acquisition of individual real estate at costs of at least NT$300 million or 20% of the paid-in capital (None)
6) Disposal of individual real estate at prices of at least NT$300 million or 20% of the paid-in capital (None)
7) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 3)
8) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 4)

b. Investees and information about reinvestment:

1) Financing provided to others (Table 6)
2) Endorsements/guarantees provided (Table 7)
3) Significant marketable securities held (excluding investments in subsidiaries, associates and joint ventures) (None)
4) Marketable securities acquired or disposed of at costs or prices of at least NT$300 million or 20% of the paid-in capital (None)
5) Acquisition of individual real estate at costs of at least NT$300 million or 20% of the paid-in capital (None)
6) Disposal of individual real estate at prices of at least NT$300 million or 20% of the paid-in capital (None)
7) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 3)
8) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 4)

9) Information on investees (Table 5)

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 year, repatriations of investment income, and limit on the amount of investment in the mainland China area (Table 8)

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 (Table 8)

TABLE 1

TEST-RITE INTERNATIONAL CO., LTD.

FINANCINGS PROVIDED TO OTHERS

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No. (Note 1)	Lender	Borrower	Financial Statement Account	Related Parties	Maximum Balance for the Period (Note 3)	Ending Balance (Note 2)	Amount Actually Drawn (Note 2)	Interest Rate (%)	Financing Type (Note 4)	Transaction Amount (Note 5)	Financing Reasons	Allowance for Impairment Loss	Collateral		Financing Limit for Each Borrowing Company	Financing Company's Financing Amount Limit
													Item	Value
0	Test-Rite International Co., Ltd.	Test Rite Products corp.	Other receivables - related party	Yes	661,940 (US$ 20,000,000)	377,136 (US$ 12,000,000)	- (US$ -)	2.16	b	$ -	Business operation	$ -	-	$ -	$ 1,397,297 (Note 6)	$ 2,794,595 (Note 7)
		Hela Furnishing Co., Ltd.	Other receivables - related party	Yes	1,350,000	1,150,000	875,000	2.15-2.16	b	-	#	-	-	-	1,397,297 (Note 6)	2,794,595 (Note 7)
		Test-Rite International Co., Ltd.	Other receivables - related party	Yes	72,000	-	-	2.15	b	-	#	-	-	-	1,397,297 (Note 6)	2,794,595 (Note 7)
		Hela Living International Co., Ltd.	Other receivables - related party	Yes	216,000	93,000	-	2.15-2.16	b	-	#	-	-	-	1,397,297 (Note 6)	2,794,595 (Note 7)

Note 1: This refers to the investee company.
Note 2: The exchange rates for the year ended December 31, 2025 are USD/NTD = 31.428.
Note 3: The highest monthly balance of funds financed to others as of December 31, 2025 is calculated based on the current month's exchange rate.
Note 4: Nature of financing:
a. Business contacts.
b. Short-term financing is needed.
Note 5: If the nature of financing was business transaction, the amount of business transactions is filled in. The amount of business transaction refers to the amount of transaction between the lender and the borrower in the most recent year.
Note 6: This is 20% of the lender's shareholders' equity.
Note 7: This is 40% of the lender's shareholders' equity.

TABLE 2

TEST-RITE INTERNATIONAL CO., LTD.

ENDORSEMENTS/GUARANTEES PROVIDED

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No.	Endorser/Guarantee	Endorsee/Guarantee		Limit on Endorsement/ Guarantee Given on Behalf of Each Party (Note 4)	Maximum Amount Endorsed/ Guaranteed During the Period (Note 5)	Outstanding Endorsement/ Guarantee at the End of the Period (Note 3)	Actual Amount Borrowed (Note 3)	Amount Endorsed/ Guaranteed by Collateral	Ratio of Accumulated Endorsement/ Guarantee to Net Equity in Latest Financial Statements (%)	Aggregate Endorsement/ Guarantee Limit (Note 2)	Endorsement/ Guarantee Given by Parent on Behalf of Subsidiaries	Endorsement/ Guarantee Given by Subsidiaries on Behalf of Parent	Endorsement/ Guarantee Given on Behalf of Companies in Mainland China
		Name	Relationship (Note 4)
0	Test-Rite International Co., Ltd.	Test-Rite Products Corp.	b	$ 3,493,244	$ 1,005,696 (US$ 32,000,000)	$ 1,005,696 (US$ 32,000,000)	$ - (US$ -)	$ -	14.39	$ 6,986,487	Y	N	N
		TEST RITE tepro GmbH	b	3,493,244	553,320 (EUR 15,000,000)	553,320 (EUR 15,000,000)	313,548 (EUR 8,500,000)	-	7.92	6,986,487	Y	N	N
		Test-Rite Business Development	b	3,493,244	246,609 (RMB 55,000,000)	246,609 (RMB 55,000,000)	134,001 (RMB 29,885,600)	-	3.53	6,986,487	Y	N	Y
		Test-Rite Pte Ltd.	b	3,493,244	66,194 (US$ 2,000,000)	62,856 (US$ 2,000,000)	-	-	0.90	6,986,487	Y	N	N
		Hola Furnishing Co., Ltd.	b	3,493,244	8,553	8,553	5,733	-	0.12	6,986,487	Y	N	N

Note 1: This refers to the Company.
Note 2: 100.00% of the Company's shareholders' equity.
Note 3: The exchange rates for the year ended December 31, 2025 are USD/NTD = 31.428, EUR/NTD = 36.888, RMB/NTD = 4.4838
Note 4: Endorsee/guarantee:
a. Company with business relationship (limit is 35% of shareholders' equity).
b. Companies directly or indirectly holding more than 50% of the voting shares (limit is 50% of shareholders' equity).
c. Company that directly or indirectly holds more than 50% of the voting shares.
Note 5: Calculated in current exchange rate.

TABLE 3

TEST-RITE INTERNATIONAL CO., LTD.

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

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Buyer	Related Party	Relationship	Transaction Details				Abnormal Transaction		Notes/Trade Receivable (Payable)
			Purchases/ Sales	Amount	% of Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total
Test-Rite International Co., Ltd.	Test-Rite Products Corp.	Subsidiary of Test-Rite International (U.S.) Co., Ltd.	Sales	$ (2,962,794)	(20)	T/T 180 days to 360 days	-	-	$ 2,931,469	49
	Homezone Int'l Corp. (U.S.A.)	Subsidiary of Test-Rite Products Corp.	Sales	(453,758)	(3)	T/T 180 days to 360 days	-	-	434,687	7
	International Art Enterprise Co., Ltd.	Subsidiary of Test-Rite International Co., Ltd.	Sales	(215,136)	(1)	T/T 180 days	-	-	44,454	1
	Test-Rite Terpo GmbH	Subsidiary of Test-Rite Development GmbH	Sales	(122,802)	(1)	T/T 90 days to 120 days			69,720	1
	Hampton Products International Corporation	Subsidiary of Test-Rite International Co., Ltd.and Test-Rite Products Corp.	Sales	(790,757)	(5)	T/T 90 days	-	-	323,221	5
Test Pro Development Co., Ltd.	Test Cin M&E Engineering Co., Ltd.	Subsidiary of Chung Cin Enterprise Co., Ltd.	Sales	(165,986)	(23)	T/T 60 days	-	-	14,378	6

TABLE 4

TEST-RITE INTERNATIONAL CO., LTD.

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

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Company Name	Related Party	Relationship	Ending Balance	Turnover Rate	Overdue		Amount Received in Subsequent Period	Allowance for Impairment Loss
					Amount	Actions Taken
Test-Rite International Co., Ltd.	Test-Rite Products Corp.	Subsidiary of Test-Rite International (U.S.) Co., Ltd.	Trade receivables $ 2,931,469	1	$ -	-	$ 704,234	$ -
			Other receivables 65,778	-	-	-	-	-
			Trade receivables 434,687	1	-	-	154,990	-
	Homezone Int'l Corp (U.S.A.)	Subsidiary of Test-Rite Products Corp.	Trade receivables 50	-	-	-	-	-
	Hampton Products International Corporation	Subsidiary of Test-Rite Retail Co., Ltd. and Test-Rite Products Corp.	Trade receivables 323,221	4.5	1,073	Subsequently collected	296,859	-
Test-Rite Products Corp.	Hampton Products International Corporation	Subsidiary of Test-Rite Retail Co., Ltd. and Test-Rite Products Corp.	Other receivables 15,953	-	-	-	-	-
Test-Rite Home Service Co., Ltd.	Test-Rite Retail Co., Ltd.	Subsidiary of Test-Rite Retail Co., Ltd.	Trade receivables 157,873	2.7	847	Subsequently collected	157,390	-
Test-Rite Business Development	Test-Rite International Co., Ltd.	Test-Rite International indirectly owned second-tier subsidiary	Trade receivables 209,190	4	-	-	126,577	-

TABLE 5

TEST-RITE INTERNATIONAL CO., LTD.

INFORMATION ON INVESTEES

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investor Company	Investor Company	Location	Main Businesses and Products	Original Investment Amount	As of December 31, 2025	Net Income (Loss) of the Investor	Share of Profit (Loss)	Note
December 31, 2025	December 31, 2024	Number of Shares	%	Carrying Amount
Test-Rite International Co., Ltd.	Fortune Miles Trading Inc.	Portcullis Chambers, P.O. Box 1225, Apia, Samoa	Investment holding	$ 941	$ 941	30,000	100.00	$ 696
Test-Rite Retailing Co., Ltd.	Windward 1, Regatta Office Park, West Bay Road, P.O. Box 897, Grand Cayman KY1-1103, Cayman Islands	Investment holding	5,314,666	5,314,666	146,965,000	100.00	500,619	(16,599)
Test-Rite Trading Co., Ltd.	Windward 1, Regatta Office Park, West Bay Road, P.O. Box 897, Grand Cayman KY1-1103, Cayman Islands	Investment holding	2,606,404	2,606,404	85,835,294	100.00	1,083,554	(33,545)
Upmaster International Co., Ltd.	Vistra Corporate Services Centre, Wickham Cay II, Road Town, Tortola, British Virgin Islands VG1110	Investment holding	311,736	311,736	6,400,000	100.00	106,166	8,318
Test-Rite Pte Ltd.	260 Orchard Road, #12-08 The Heeren Singapore 238855	International trade	39,748	39,748	2,100,000	100.00	77,469	2,502
Test-Rite Products (Hong Kong) Limited	7F, NEW BIRGHIT BUILDING, 11 SHEUNG YUET ROAD, KOWLOON BAY, KOWLOON, HONG KONG	International trade	4,222	4,222	9,999	100.00	49,572	102
Test-Rite Int'l. (Australia) Pty. Limited	Unit 11/38 Solent Circuit Norwest 2153	International trade	114,453	114,453	3,550,000	100.00	13,182	(278)
Test Rite Int'l. (Canada) Ltd.	431 Alden Road, Unit 3, Markham, Ontario L3R 3L4, Canada	International trade	51,483	51,483	100	100.00	271	(66)
Test-Rite (UK) Ltd.	Wren Partners LLP, Connect House, 133-137 Alexandra Road, London, England, SW19 7JY	International trade	1,025,000	CAN 1,025,000	700,000	-	-	-
Test-Rite Development GmbH	MERKURRING 82 22143 HAMBURG, GERMANY	Investment holding	1,087,772	1,087,772	9,670,000	100.00	490,385	(133,212)
Lucky Rite Company Ltd.	Lot BB2, D6 Road, Dat Do I Industrial Park, Phuoc Long The Commune, Dat Do District, Ba Ria - Vung Tau Province, Vietnam	Tally packing and real estate leasing	121,132	121,132	-	100.00	114,789	(573)
Test-Rite International (U.S.) Co., Ltd.	2711 Centerville Rd Ste 400, Wilmington, New Castle, State of Delaware	Investment holding	2,361,038	2,361,038	7,635	94.40	1,425,217	148,540
Lib Chius Co., Ltd.	3F, No. 23, Xinhu 3rd Rd, Neihu District, Taipei City, Taiwan (R.O.C.)	Various business investments	3,011,137	3,011,137	302,254,000	100.00	3,655,946	132,735
Lib Teh International Co., Ltd.	3F, No. 23, Xinhu 3rd Rd, Neihu District, Taipei City, Taiwan (R.O.C.)	Various business investments	63,290	63,290	2,500,000	100.00	102,899	3,791
B&S Link Co., Ltd.	3F, No. 23, Xinhu 3rd Rd, Neihu District, Taipei City, Taiwan (R.O.C.)	Information processing service	22,994	22,994	2,300,000	100.00	25,909	1,444
Fusion International Distribution Inc.	3F, No. 23, Xinhu 3rd Rd, Neihu District, Taipei City, Taiwan (R.O.C.)	International trade	73,785	5,585	7,819,838	100.00	86,302	(398)
ChungCin Enterprise Co., Ltd.	3F, No. 23, Xinhu 3rd Rd, Neihu District, Taipei City, Taiwan (R.O.C.)	Construction management, buying and selling of machinery, hardware and commodities	665,810	665,810	57,291,330	91.67	1,255,948	110,887
International Art Enterprise Co., Ltd.	3F, No. 23, Xinhu 3rd Rd, Neihu District, Taipei City, Taiwan (R.O.C.)	Department store household goods trading	122,609	107,109	2,550,000	100.00	98,997	(55)
Test-Rite Retail Co., Ltd.	1,2,5F, No. 23, Xinhu 3rd Rd, Neihu District, Taipei City, Taiwan (R.O.C.)	Wholesale and retail of general household building materials, equipment and installation	169,000	175,000	16,899,999	17.60	528,278	211,187
Hola Furnishing Co., Ltd.	5F, No. 23, Xinhu 3rd Rd, Neihu District, Taipei City, Taiwan (R.O.C.)	Retail of furniture, buildings, kitchen utensils and fittings	408,291	408,291	40,877,619	51.06	13,479	(399,770)
Testrite Brand Agency Co., Ltd.	5F, No. 23, Xinhu 3rd Rd, Neihu District, Taipei City, Taiwan (R.O.C.)	Wholesale and retail of furniture, buildings, kitchen utensils and fittings	480,198	480,198	47,122,800	100.00	336,230	(85,956)
Hot Living International Co., Ltd.	5F, No. 23, Xinhu 3rd Rd, Neihu District, Taipei City, Taiwan (R.O.C.)	Retail of furniture, buildings, kitchen utensils and fittings	67,802	50,802	6,758,299	100.00	100,935	31,401
Test-Rite Retail Co., Ltd. and Test-Rite Products Corp.	Hampton Products International Corporation	50 ICON FOOTHILL RANCH, CA 92610.	The import, manufacturing, and wholesale of hardware and lock products	815,781	-	1,298,121	33.27	892,983
Upmaster International Co., Ltd.	Test-Rite International (U.S.) Co., Ltd.	2711 Centerville Rd Ste 400, Wilmington, New Castle, State of Delaware	Investment holding	135,572	135,572	453	5.60	106,163

(Continued)

Investor Company	Investor Company	Location	Main Businesses and Products	Original Investment Amount	As of December 31, 2025	Net Income (Loss) of the Investor	Share of Profit (Loss)	Note
December 31, 2025	December 31, 2024	Number of Shares	%	Carrying Amount
Lih Chiou Co., Ltd.	Test-Rite Retail Co., Ltd.	1,2,5F, No. 23, Xinhu 3rd Rd., Neihu Dist., Taipei City, Taiwan (R.O.C.)	Wholesale and retail of general household building materials, equipment and installation	$ 4,480,542	$ 4,480,542	52,500,001	54.69	$ 3,573,687
International Art Enterprise Co., Ltd. and Fusion International Distribution Inc.	Test-Rite India Private Limited	Unitach Cyber Park, Tower B, Unitach World, Khandsa Road, Gurgaon, Gurgaon- 122001, Haryana	Trade	120,646	-	33,600,000	100.00	117,282
Chang Cin Enterprise Co., Ltd.	Tony Construction Co., Ltd.	5F, No. 23, Xinhu 3rd Rd., Neihu Dist., Taipei City, Taiwan (R.O.C.)	Architecture and civil engineering	361,000	361,000	36,100,000	95.00	520,106
Test Cin M&E Engineering Co., Ltd.	5F, No. 23, Xinhu 3rd Rd., Neihu Dist., Taipei City, Taiwan (R.O.C.)	Mechanical and electrical engineering	136,610	136,610	11,145,000	95.26	196,816	39,610
Chang Cin Interior Design Construction Co., Ltd.	5F, No. 23, Xinhu 3rd Rd., Neihu Dist., Taipei City, Taiwan (R.O.C.)	Interior decoration industry	48,720	48,720	3,240,000	90.00	65,763	12,443
VIET HAN CO., LTD.	Vietnam	Import and export trade	120,643	120,643	-	100.00	69,917	(11,749)
U-ME Enterprise Co., Ltd.	1F, No. 7, Ln. 64, Zhongzheng N. Rd., Sanchong Dist., New Taipei City, Taiwan (R.O.C.)	Cleaning services and landscape design	US$ 4,000,000	US$ 4,000,000	-	-	-	-
Test-On Lighting Technology Co., Ltd.	No. 43, Guetai Rd., Zhunan Township, Miaoli County	Appliance wholesale	14,400	14,400	1,440,000	48.00	11,876	(299)
Test Cin International Co., Ltd.	5F, No. 23, Xinhu 3rd Rd., Neihu Dist., Taipei City, Taiwan (R.O.C.)	Building materials wholesale	13,770	8,670	1,377,000	51.00	21,164	11,583
Le-Joy Innovation Co., Ltd.	No. 89, Minshan St., Neihu Dist., Taipei City, Taiwan (R.O.C.)	Apartment building management services	67,140	67,140	6,204,000	56.40	62,658	(14,463)
Test King Industrial Co., Ltd.	1F, No. 89, Minshan St., Neihu Dist., Taipei City, Taiwan (R.O.C.)	Mold Rental Industry	11,970	10,500	1,197,000	70.00	8,056	(5,891)
CHUNG CIN ENTERPRISE (U.S.) CORP.	1900 Burgundy Ontario California 91761, United States.	Investment holding	27,864	27,864	1,000,000	100.00	29,397	(681)
Zennikin Co., Ltd.	5 Chomo-1-15 Minami 9 Jonishi, Chuo Ward, Sapporo, Hokkaido, Japan	Import and export trade	US$ 1,000,000	US$ 1,000,000	9,671	36,000	100.00	69,163
Le-Joy Innovation Co., Ltd.	Test Pro Development Co., Ltd.	No. 89, Minshan Street, Neihu District, Taipei City	Hardware wholesale and retail	84,420	63,000	8,442,000	67.00	32,330
Delta Asia System Co., Ltd.	2F, No. 8, Lane 491, Section 2, Zhongshan Road, Banqiao District, New Taipei City	Installation of electrical appliances and cables	18,000	18,000	600,000	30.00	25,853	13,745
Test-Rite Retail Co., Ltd.	Test-Rite Home Service Co., Ltd.	5F, No. 23, Xinhu 3rd Rd., Neihu Dist., Taipei City, Taiwan (R.O.C.)	Interior decoration industry	86,000	86,000	8,600,000	100.00	161,514
Hola Furnishing Co., Ltd.	Zhenghe Food Co., Ltd.	No. 89, Minshan St., Neihu Dist., Taipei City, Taiwan (R.O.C.)	Wholesale food	2,233	2,233	350,000	35.00	2,227
Testrite Brand Agency Co., Ltd.	MENG & YUME INNOVATE PTE. LTD.	1 Raffles Place, #20-01, One Raffles Place, Singapore 048616	Digital Marketing	86,000	86,000	2,146,341	14.38	80,183
B&S Link Co., Ltd.	Home Intelligence Co., Ltd.	5F, No. 23, Xinhu 3rd Rd., Neihu Dist., Taipei City, Taiwan (R.O.C.)	Other information supply services	-	5,000	-	-	-

Note 1: For the information on investees in mainland China, refer to Table 9.

(Concluded)

TEST-RITE INTERNATIONAL CO., LTD.

FINANCING PROVIDED TO OTHERS OF INVESTEE

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

TABLE 6

No (Note 1)	Lender	Borrower	Financial Statement Account	Related Party	Highest Balance for the Period (Note 3)	Ending Balance (Note 2)	Actual Amount Borrowed (Note 2)	Interest Rate (%)	Nature of Financing (Note 4)	Business Transaction Amount (Note 5)	Reasons for Short-term Financing	Allowance for Impairment Loss	Collateral		Financing Limit for Each Borrower	Aggregate Financing Limit
													Item	Value
1	Test-Rite Development GmbH	Test-Rite Topro GmbH	Other receivables - related party	Y	$ 213,950 EUR 5,800,000	$ 213,950 EUR 5,800,000	$ 213,950 EUR 5,800,000	1.5	b	$ -	Business operation	$ -	-	$ -	$ 980,769 (Note 8)	$ 980,769 (Note 8)
2	Energy Retailing Co., Ltd.	Test-Rite Business Development	Other receivables - related party	Y	186,981 RMB 41,000,000	183,836 RMB 41,000,000	170,384 RMB 38,000,000	3.1	b	-	Business operation	-	-	-	381,012 (Note 8)	381,012 (Note 8)
3	Test-Rite Home Service Co., Ltd.	Hot Living International Co., Ltd.	Other receivables - related party	Y	31,000	-	-	-	b	-	Business operation	-	-	-	32,303 (Note 6)	64,605 (Note 7)
		Testrite Brand Agency Co., Ltd.	Other receivables - related party	Y	31,000	-	-	-	b	-	Business operation	-	-	-	32,303 (Note 6)	64,605 (Note 7)
4	Testrite Brand Agency Co., Ltd.	Hot Living International Co., Ltd.	Other receivables - related party	Y	20,000	-	-	2.225	b	-	Business operation	-	-	-	46,555 (Note 6)	133,110 (Note 7)
		Hola Furnishing Co., Ltd.	Other receivables - related party	Y	30,000	-	-	-	b	-	Business operation	-	-	-	46,555 (Note 6)	133,110 (Note 7)
5	TEST RITE (CHINA) INVESTMENT CO., LTD.	Test-Rite Business Development	Other receivables - related party	Y	423,311 RMB 98,000,000	304,898 RMB 68,000,000	297,276 RMB 66,300,000	3.1	b	-	Business operation	-	-	-	613,215 (Note 8)	613,215 (Note 8)
6	Chang Chi Enterprise Co., Ltd.	PHOENIX INTERNATIONAL CO., LTD.	Other receivables - related party	Y	135,040 US$ 3,500,000	US$ -	US$ -	-	b	-	Business operation	-	-	-	283,018 (Note 6)	366,037 (Note 7)
		Zemikin CO., LTD.	Other receivables - related party	Y	41,860 JPY 200,000,000	JPY 200,000,000	JPY 200,000,000	b	-	-	Business operation	-	-	-	283,018 (Note 6)	366,037 (Note 7)
		VIET HAN CO., LTD.	Other receivables - related party	Y	28,285 US$ 900,000	US$ 900,000	US$ 900,000	4	b	-	Business operation	-	-	-	283,018 (Note 6)	366,037 (Note 7)

7	Lucky Rite Company Limited	Avida Company Limited	Other receivables - related party	Y	10,757 US$ 325,000	10,214 US$ 325,000	10,214 US$ 325,000	5	b	-	Business operation	-	-	-	229,579 (Note 8)	229,579 (Note 8)
		Fortune Rite International Co., Ltd.	Other receivables - related party	Y	901 US$ 30,000	901 US$ 30,000	901 US$ 30,000	b	b	-	Business operation	-	-	-	229,579 (Note 8)	229,579 (Note 8)

8	B&S Link (Shanghai) Co., Ltd.	Avida Company Limited	Other receivables - related party	Y	86,630 RMB 19,000,000	40,354 RMB 9,000,000	40,354 RMB 9,000,000	3.1	b	-	Business operation	-	-	-	144,097 (Note 8)	144,097 (Note 8)
9	Test Rite Retailing Limited	Test Rite Intl. (Australia) Pty., Ltd.	Other receivables - related party	Y	3,216 AUD 153,000	3,216 AUD 153,000	3,216 AUD 153,000	2.4.45	b	-	Business operation	-	-	-	620,621 (Note 8)	620,621 (Note 8)
10	Test Rite (UK) Ltd.	Test Rite Products Corp	Other receivables - related party	Y	19,858 US$ 600,000	US$ -	US$ -	-	b	-	Business operation	-	-	-	24,500 (Note 8)	24,500 (Note 8)
11	Energy Park International Co., Ltd.	Avida Company Limited	Other receivables - related party	Y	64,360 US$ 1,944,600	35,262 US$ 1,122,000	35,262 US$ 1,122,000	3	b	-	Business operation	-	-	-	206,830 (Note 8)	206,830 (Note 8)
12	Lib Chiea Co., Ltd.	Testrite Brand Agency Co., Ltd.	Other receivables - related party	Y	50,000	36,000	36,000	3.119-3.244	b	-	Business operation	-	-	-	731,189 (Note 6)	1,462,378 (Note 7)
		Energy Park International Co., Ltd.	Other receivables - related party	Y	35,163	-	-	-	b	-	Business operation	-	-	-	731,189 (Note 6)	1,462,378 (Note 7)
13	Test Rite PTE Ltd.	Test-Rite Intl. (Australia) Pty. Limited	Other receivables - related party	Y	966 AUD 50,000	AUD 62,856	AUD 62,856	3	b	-	Business operation	-	-	-	154,939 (Note 8)	154,939 (Note 8)
		Test Rite Product Corp.	Other receivables - related party	Y	62,856 US$ 2,000,000	US$ 2,000,000	US$ 2,000,000	3	b	-	Business operation	-	-	-	154,939 (Note 8)	154,939 (Note 8)
14	International Art Enterprise Co., Ltd.	Testrite Brand Agency Co., Ltd.	Other receivables - related party	Y	8,000	8,000	8,000	3.244	b	-	Business operation	-	-	-	9,040 (Note 6)	18,000 (Note 7)

Note 1: This refers to the inverter company.
Note 2: The exchange rates for the year ended December 31, 2025 are USD/NTD = 31.428; EUR/NTD = 36.000, RMB/NTD = 4.030, AUD/NTD = 21.0188, JPY/NTD = 0.2009.
Note 3: The highest monthly balance of funds financed to others as of December 31, 2025 is calculated based on the current month's exchange rate.
Note 4: Nature of financing:
a. Business contacts.
b. Short-term financing is needed.
Note 5: If the nature of financing was business transaction, the amount of business transactions is filled in. The amount of business transaction refers to the amount of transaction between the lender and the borrower in the most recent year.

(Continued)

Note 6: This is 20% of the lender's shareholders' equity.

Note 7: This is 40% of the lender's shareholders' equity.

Note 8: This is 200% of the Company's shareholders' equity.

(Concluded)

TABLE 7

TEST-RITE INTERNATIONAL CO., LTD.

ENDORSEMENTS/GUARANTEES PROVIDED OF INVESTEE

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No. (Note 1)	Endorser/Guarantor	Endorsee/Guarantee		Limit on Endorsement/ Guarantee Given on Behalf of Each Party (Note 4)	Maximum Amount Endorsed/ Guaranteed During the Period	Outstanding Endorsement/ Guarantee at the End of the Period	Actual Amount Borrowed	Amount Endorsed/ Guaranteed by Collateral	Ratio of Accumulated Endorsement/ Guarantee to Net Equity in Latest Financial Statements (%)	Aggregate Endorsement/ Guarantee Limit	Endorsement/ Guarantee Given by Parent on Behalf of Subsidiaries	Endorsement/ Guarantee Given by Subsidiaries on Behalf of Parent	Endorsement/ Guarantee Given on Behalf of Companies in Mainland China
		Name	Relationship (Note 4)
1	Test-Rite Retail Co., Ltd.	Chung Cin Enterprise Co., Ltd.	a	$ 698,649	$ 17,574	$ -	$ -	$ -	-	$ 3,001,573 (Note 2)	-	-	-
2	Chung Cin Enterprise Co., Ltd.	Tony Construction Co., Ltd.	b	778,300	750,000	500,000	411,770	-	35.33	1,415,091 (Note 3)	Y	-	-
		Test Cin M&E Engineering Co., Ltd.	b	778,300	100,000	100,000	14,740	-	7.07	1,415,091 (Note 3)	Y	-	-

Note 1: Refers to the investee company.
Note 2: 100.00% of the shareholders' equity of Test-Rite Retail Co., Ltd.
Note 3: 100.00% of the shareholders' equity of Chung Cin Enterprise Co., Ltd.
Note 4: Endorsee/guarantee:
a. Directly or indirectly holds 90-100% of the voting shares by Test-Rite International Co., Ltd. (the limit is 10% of the shareholders' equity of Test-Rite International Co., Ltd.).
b. Directly or indirectly holds more than 50% of the voting shares (the limit is 55% of the shareholders' equity of Chung Cin Enterprise Co., Ltd.).

TABLE 8

TEST-RITE INTERNATIONAL CO., LTD.

INFORMATION ON INVESTMENTS IN MAINLAND CHINA OF PROSPERITY DIELECTRICS CO., LTD.

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

The names of investee companies in mainland China, their main businesses and products, total amount of paid-in capital, method of investment, remittance of funds, percentage of ownership in investment, investment gain or loss, carrying amount, and accumulated repatriation of investment income were as follows:

Investee Company	Main Businesses and Products	Paid-in Capital	Method of Investment	Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2025	Remittance of Funds
					Outward	Inward
B&S Link (Shanghai) Co., Ltd.	R&D and design of computer and network technology	US$ 795,902	Note 1	$ 25,014
US$ 795,902	$ -	$ -	$ 25,014
US$ 795,902	$ (40,900)
(Note 4)	100	$ (40,900)	$ 70,600	$ -
TEST RITE (CHINA) INVESTMENT CO., LTD.	Investment industry	US$ 93,280,000
(Note 5)	Note 2	2,309,958
US$ 73,500,000	-	-	2,309,958
US$ 73,500,000	(22,054)
(Note 4)	100	(22,054)	306,608	-
Energy Retailing Co., Ltd.	Rental industry	US$ 17,000,000	Note 2	534,276
US$ 17,000,000	-	-	534,276
US$ 17,000,000	5,433
(Note 4)	100	5,433	190,506	-
Test-Rite Business Development	Trade	US$ 71,000,000	Note 3	2,231,388
US$ 71,000,000	-	-	2,231,388
US$ 71,000,000	8,149
(Note 4)	100	8,149	861,443	-

Note 1: Investment in mainland China companies through B&S Link Corporation (Cayman) established in a third region.
Note 2: Investment in mainland China companies through Test-Rite Retailing Co., Ltd. established in a third region.
Note 3: Investment in mainland China companies through Test-Rite Trading Co., Ltd. established in a third region.
Note 4: It is based on the financial statements of the investee company that have been audited.
Note 5: The amount of US$19,780,000 of paid-in capital was invested with shares in Light Up Shanghai Retailing Co., Ltd., Hola Shanghai Living Art Retailing Co., Ltd., Hola Hangzhou Retailing Co., Ltd. And Hola Beijing Retail & Trading Co., Ltd. through Test Rite (China) Investment Co.
Note 6: Relevant figures in this table involve foreign currency except for the investment gains and losses recognized in the current period (calculated in average exchange rate from January 1, 2025 to December 31, 2025), was calculated in the closing exchange rate on December 31, 2025.

Investment quota for mainland China:

Accumulated Outward Remittance for Investments in Mainland China as of December 31, 2025	Investment Amount Authorized by the Investment Commission, MOEA	Upper Limit on the Amount of Investments Stipulated by the Investment Commission, MOEA
NT$6,750,142
US$214,781,158	NT$7,248,276
US$230,631,158	(Note 3)

Note 1: The average exchange rates as of December 31, 2025 are USD/NTD = 31.428.
Note 2: The average exchange rates for the year ended December 31, 2025 are USD/NTD = 31.1867.
Note 3: The Company was approved as the operation headquarters by the Industrial Development Bureau, Ministry of Economic Affairs and is thus exempted from the related regulations of "Regulations Governing the Approval of Investment or Technical Cooperation in Mainland China".

TEST-RITE INTERNATIONAL CO., LTD.

THE CONTENTS OF STATEMENTS OF MAJOR ACCOUNTING ITEMS

Item	Statement Index
Major Accounting Items in Assets, Liabilities and Equity
Statement of cash and cash equivalents	1
Statement of trade receivables	2
Statement of trade receivables - related parties	3
Statement of other receivables	4
Statement of changes in investments accounted for using the equity method	5
Statement of changes in property, plant and equipment	Note 11
Statement of changes in accumulated depreciation of property, plant and equipment	Note 11
Statement of changes in investment properties	Note 13
Statement of changes in accumulated depreciation of investment properties	Note 13
Statement of deferred tax assets	Note 19
Statement of short-term borrowings	6
Statement of trade payables	7
Statement of other payables	8
Statement of lease liabilities	9
Statement of long-term borrowings	Note 14
Major Accounting Items in Profit or Loss
Statement of operating revenue	10
Statement of operating cost	11
Statement of operating expenses	12
Statement of non-operating income and expenses	Note 18
Statement of labor, depreciation and amortization by function	13

STATEMENT 1

TEST-RITE INTERNATIONAL CO., LTD.

STATEMENT OF CASH AND CASH EQUIVALENTS

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Item	Description	Amount
Cash on hand		$ 6,104
Demand deposits		69,302
Checking accounts		19,103
Foreign currency deposits	Demand deposits US$1,483,065.11	46,610
	EUR47,991.70	1,770
	THB353,893	352
	RMB1,209.68	5
	HK$3,080,688.44	12,406
	JPY475,358.00	96
		$ 155,748

Note: Exchange rate on December 31, 2025:

USD/NTD = 31.428

EUR/NTD = 36.888

THB/NTD = 0.9938

RMB/NTD = 4.4838

HKD/NTD = 4.027

JPY/NTD = 0.2009

STATEMENT 2

TEST-RITE INTERNATIONAL CO., LTD.

STATEMENT OF TRADE RECEIVABLES

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Name	Description	Amount
A Company	Receivables for export goods	$ 1,510,077
B Company	Receivables for export goods	207,138
Others (Note)	Receivables for export goods	448,750
Less: Allowance for impairment loss		(13,130)
		$ 2,152,835

Note: The amount of each individual client included in "others" does not exceed 5% of the account balance.

STATEMENT 3

TEST-RITE INTERNATIONAL CO., LTD.

STATEMENT OF TRADE RECEIVABLES - RELATED PARTIES

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Client Name	Description	Amount
Test-Rite Products Corp.	Receivables for goods	$ 2,931,469
Homezone Int'l Corp. (U.S.A.)	Receivables for goods	434,687
Hampton Products International Corporation	Receivables for goods	323,221
Others (Note)	Receivables for goods	119,424
		$ 3,808,801

Note: The amount of each individual client included in "others" does not exceed 5% of the account balance.

STATEMENT 4

TEST-RITE INTERNATIONAL CO., LTD.

STATEMENT OF OTHER RECEIVABLES

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Name	Description	Amount
Trade receivables - related parties	Receivables of operating expenses amortized by related parties	$ 997,716
Export income tax refund receivable	Export income tax refund receivable	4,875
Other receivables	Others	234,110
		$ 1,236,701

STATEMENT 5

TEST-RITE INTERNATIONAL CO., LTD.

STATEMENT OF CHANGES IN INVESTMENTS

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Name	Balance at January 1, 2025		Increase		Decrease			Balance at December 31, 2025			Market Value
	Number of Shares	Amount	Number of Shares	Amount	Number of Shares	Amount	Gain (Loss)	Number of Shares	%	Amount	Unit Price (NT$)	Total Amount	Collateral
Fortune Miles Trading Inc.	30,000	$ 724	-	$ -	-	$ 28	$ -	30,000	100.00	$ 696	23.2	$ 696	-
Test-Rite Retailing Co., Ltd.	156,965,000	520,435	-	-	10,000,000	3,187	(16,629)	146,965,000	100.00	500,619	3.41	500,619	-
Test-Rite Trading Co., Ltd.	85,835,294	1,126,189	-	-	-	9,054	(33,581)	85,835,294	100.00	1,083,554	12.62	1,083,554	-
Upmaster International Co., Ltd.	6,400,000	101,920	-	-	-	4,072	8,318	6,400,000	100.00	106,166	16.59	106,166	-
Test-Rite Pte Ltd.	2,100,000	78,022	-	-	-	3,055	2,502	2,100,000	100.00	77,469	36.89	77,469	-
Test-Rite Products (Hong Kong) Limited	9,999	52,040	-	-	-	2,570	102	9,999	100.00	49,572	4,957.70	49,572	-
Test-Rite Intl. (Australia) Pty. Limited	3,550,000	13,123	-	337	-	-	(278)	3,550,000	100.00	13,182	3.71	13,182	-
Test Rite Int'l. (Canada) Ltd.	100	338	-	-	-	1	(66)	100	100.00	271	2710	271	-
Test-Rite (UK) Ltd.	775,930	33,476	-	140	-	-	(21,366)	775,930	100.00	12,250	15.79	12,250	-
Test-Rite Development GmbH	9,670,000	585,493	-	38,104	-	-	(133,212)	9,670,000	100.00	490,385	50.71	490,385	-
Test-Rite International (U.S.) Co., Ltd.	7,635	1,345,806	-	-	-	60,811	140,222	7,635	94.00	1,425,217	187,528.55	1,425,217	-
Lucky Rite Co., Ltd.	-	115,362	-	-	-	-	(573)	-	100.00	114,789	-	114,789	-
Hampton Production International Corporation	-	-	905,221	611,887	-	-	8,052	905,221	23.20	619,939	0.68	619,939	-
Lih Chiou Co., Ltd.	302,254,000	3,402,685	-	119,379	-	-	133,882	302,254,000	100.00	3,655,946	12.1	3,655,946	-
Lih The International Co., Ltd.	2,500,000	94,637	-	4,471	-	-	3,791	2,500,000	100.00	102,899	41.16	102,899	-
B&S Link Co., Ltd.	2,300,000	24,490	-	-	-	25	1,444	2,300,000	100.00	25,909	11.26	25,909	-
Fusion International Distribution Inc.	999,838	22,096	6,820,000	68,200	-	3,596	(398)	7,819,838	100.00	86,302	86.32	86,302	-
ChungCin Enterprise Co., Ltd.	57,291,330	1,279,718	-	-	-	146,406	122,636	57,291,330	100.00	1,255,948	21.92	1,255,948	-
International Art Enterprise Co., Ltd.	1,000,000	100,992	1,550,000	15,500-	-	17,440	(55)	2,550,000	100.00	98,997	99	98,997	-
Test-Rite Retail Co., Ltd.	17,499,999	473,045	-	45,053	600,000	34,696	44,876	16,899,999	17.60	528,278	50.34	850,746	-
HOLA Furnishing Co., Ltd.	40,877,619	214,850	-	2,752	-	-	(204,123)	40,877,619	51.06	13,479	0.33	13,479	-
Testrite Brand Agency Co., Ltd.	47,122,800	419,641	-	-	-	910	(82,501)	47,122,800	100.00	336,230	7.14	336,230	-
Hoi Living International Co., Ltd.	26,058,299	70,092	1,700,000	-	-	558	31,401	6,558,299	100.00	100,935	14.93	100,935	-
		$ 10,075,174		$ 905,823		$ 286,409	$ 4,444			$ 10,699,032		$ 11,021,500

Note 1: Includes organizational restructuring under common control, cash capital increase, and cumulative translation adjustments.
Note 2: Includes capital reduction refund, equity change impacts, and cumulative translation adjustments.

STATEMENT 6

TEST-RITE INTERNATIONAL CO., LTD.

DETAILS OF SHORT-TERM BORROWINGS

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Name	Description	The Loan Amount	Contract Term	Interest Rate	Details of Pledge
Bank short-term domestic currency borrowings	Operating revolving funds	$ 750,000	2025.07.01-2026.11.27	0.99%-2.03%	No
Bank short-term foreign currency borrowings	Operating revolving funds	647,417	2025.12.04-2026.01.26	4.37%-4.5%	No
		$ 1,397,417

STATEMENT 7

TEST-RITE INTERNATIONAL CO., LTD.

STATEMENT OF TRADE PAYABLES

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Name	Description	Amount
A Company	Payment for goods	$ 697,042
Others (Note)	Payment for goods	2,589,775
		$ 3,286,817

Note: The amount payable to each individual vendor included in “others” does not exceed 5% of the account balance.

STATEMENT 8

TEST-RITE INTERNATIONAL CO., LTD.

STATEMENT OF OTHER PAYABLES

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Name	Description	Amount
Payables to related parties	Payables for allocated operating expenses to related parties	$ 443,507
Payables for operating expenses	Payables for various operating expenses	111,784
Payables for remuneration of directors	Payables for remuneration of directors	827
Payables for purchases of equipment	Payables for equipment purchases	552
Payables for compensation of employees	Payables for compensation of employees	151
Other payables	Other	69,401
		$ 626,222

STATEMENT 9

TEST-RITE INTERNATIONAL CO., LTD.

STATEMENT OF LEASE LIABILITIES

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Item	Description	Contract Term	Discount Rate (%)	Balance at End of Year	Note
Buildings	Logistics warehouse at Yangmei	2-5 years	1.9-1.95	$ 135,043	Nil
Others	Leased cars from Carplus Auto Leasing Corporation and others.	2-3 years	1.9-2.35	1,858	Nil
			Less: Current portion due within one year	(60,164)
				$ 76,737

STATEMENT 10

TEST-RITE INTERNATIONAL CO., LTD.

STATEMENT OF OPERATING REVENUE

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Name	Amount
Sales revenue
Export sales revenue	$ 14,853,095
Domestic sales revenue	210
Less: Estimated sales discounts	(13,978)
	14,839,327
Platform revenue	3,131
Service revenue	355,693
Other revenue	240,703
	$ 15,438,854

STATEMENT 11

TEST-RITE INTERNATIONAL CO., LTD.

STATEMENT OF OPERATING COST

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Item	Amount
Inventory at beginning of year	$ -
Add: Inventory purchased	13,680,425
Less: Inventory at end of year	( 4,052)
Cost of goods sold	13,676,373
Add: Packaging cost	2,598
Add: Platform cost	5,833
	$ 13,684,804

STATEMENT 12

TEST-RITE INTERNATIONAL CO., LTD.

STATEMENT OF OPERATING EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Item	Amount
Export fees	$ 609,422
Salaries	346,325
Freight fees	242,683
Commission fees	119,113
Depreciation expenses	117,369
Other expenses (Note)	282,748
	$ 1,717,660

Note: The amount payable to each individual vendor included in "others" does not exceed 5% of the account balance.

STATEMENT 13

TEST-RITE INTERNATIONAL CO., LTD.

STATEMENT OF LABOR, DEPRECIATION AND AMORTIZATION BY FUNCTION

FOR THE YEAR ENDED DECEMBER 31, 2025 and 2024

(In Thousands of New Taiwan Dollars)

	2025			2024
	Operating Cost	Operating Expense	Total	Operating Cost	Operating Expense	Total
Employee benefits
Salaries	$ -	$ 286,071	$ 286,071	$ -	$ 320,826	$ 320,826
Labor and health insurance expense	-	30,170	30,170	-	36,994	36,994
Pension	-	16,621	16,621	-	20,399	20,399
Board compensation	-	827	827	-	4,557	4,557
Other employee benefits	-	13,463	13,463	-	15,045	15,045
	$ -	$ 347,152	$ 347,152	$ -	$ 397,821	$ 397,821
Depreciation	$ -	$ 117,369	$ 117,369	$ -	$ 138,827	$ 138,827
Amortization	$ -	$ 5,860	$ 5,860	$ -	$ 7,651	$ 7,651

There were 287 employees and 4 directors in 2025, and there were 337 employees and 4 directors in 2024. The remuneration of directors is calculated the same as employee benefits.
The average employee benefits in 2025 and 2024 were $1,224 thousand and $1,181 thousand, respectively.
The average salaries in 2025 and 2024 were $1,011 thousand and $963 thousand, respectively. The Company did not have supervisors for the years ended December 31, 2025 and 2024. Therefore, there was no compensation to supervisors.
The average salary and bonus increased by 5% year over year.
The Company's remuneration policies for directors, independent directors, managers and employees are stated as follows:

The purpose of the Company's remuneration policies is to offer competitive salaries and benefits to employees. The remuneration package includes monthly salaries as well as performance bonuses and employees' compensation based on the operating performance of the Company.

The Company determines the performance bonuses and employees' compensation based on both the operating performance and the salary standard of the industry. The amount and distribution are sent by the compensation committee to board of directors for approval. The amount that each employee received is based on each employee's position, contribution and performance.

AI assistant

Test Rite — Audit Report / Information 2026

52229_rns_2026-05-11_1f98fc95-4ac5-4954-b334-acbe3f7c1f25.pdf

INDEPENDENT AUDITORS' REPORT

Opinion

Basis for Opinion

Key Audit Matters

Occurrence of Sales Revenue

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

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

Notice to Readers

TEST-RITE INTERNATIONAL CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

TEST-RITE INTERNATIONAL CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

TEST-RITE INTERNATIONAL CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

Statement of Compliance

Basis of Preparation

Classification of Current and Non-current Assets and Liabilities

Foreign Currencies

Business Combinations Under Common Control/Loss of Control Over Business

Inventories

Investments in Subsidiaries

Property, Plant and Equipment

Investment Properties

Intangible Assets

Impairment of Property, Plant and Equipment, Right-of-use Asset, Investment Properties and Intangible Assets Other Than Goodwill and assets related to contract costs.

Financial Instruments

Leases

Government Grants

Employee Benefits

Employee Share Options

Taxation

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

6. CASH AND CASH EQUIVALENTS

7. FINANCIAL INSTRUMENTS AT FVTPL

8. NOTES RECEIVABLE AND TRADE RECEIVABLES

9. FINANCIAL ASSETS AT FVTOCI

10. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

11. PROPERTY, PLANT AND EQUIPMENT

12. LEASE ARRANGEMENTS

13. INVESTMENT PROPERTIES

Investment Properties

Accumulated depreciation

14. BORROWINGS

15. RETIREMENT BENEFIT PLANS

16. EQUITY

19. INCOME TAX

20. EARNINGS PER SHARE

21. SPIN-OFF OF BUSINESS

22. SUPPLIER FINANCE ARRANGEMENTS

23. SHARE-BASED PAYMENT ARRANGEMENTS

24. CAPITAL MANAGEMENT

25. FINANCIAL INSTRUMENTS

Fair Value of Financial Instruments

26. TRANSACTIONS WITH RELATED PARTIES

27. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

Endorsements/Guarantees Provided

28. SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD

29. EXCHANGE RATE OF FINANCIAL ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

30. SEPARATELY DISCLOSED ITEMS

TEST-RITE INTERNATIONAL CO., LTD.

TEST-RITE INTERNATIONAL CO., LTD.

ENDORSEMENTS/GUARANTEES PROVIDED

TEST-RITE INTERNATIONAL CO., LTD.

TEST-RITE INTERNATIONAL CO., LTD.

TEST-RITE INTERNATIONAL CO., LTD.

TEST-RITE INTERNATIONAL CO., LTD.

ENDORSEMENTS/GUARANTEES PROVIDED OF INVESTEE

FOR THE YEAR ENDED DECEMBER 31, 2025

TEST-RITE INTERNATIONAL CO., LTD.

TEST-RITE INTERNATIONAL CO., LTD.

STATEMENT OF CASH AND CASH EQUIVALENTS

DECEMBER 31, 2025

TEST-RITE INTERNATIONAL CO., LTD.

Test Rite Audit Report / Information 2026