Stock Code:1722

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Consolidated Financial Statements

With Independent Auditors’ Report
For the Years Ended December 31, 2025 and 2024

Address: 17F, No.170, Jingmao 1st Rd., Nangang Dist. Taipei City 115018, Taiwan
Telephone: (02)2542-2231

The independent auditors’ report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors’ report and consolidated financial statements, the Chinese version shall prevail.

Contents	Page
1. Cover Page	1
2. Table of Contents	2
3. Representation Letter	3
4. Independent Auditors’ Report	4
5. Consolidated Balance Sheets	5
6. Consolidated Statements of Comprehensive Income	6
7. Consolidated Statements of Changes in Equity	7
8. Consolidated Statements of Cash Flows	8
9. Notes to Consolidated Financial Statements
(1) Company history	9
(2) Approval date and procedures of the consolidated financial statements	9
(3) New standards, amendments and interpretations adopted	9~11
(4) Summary of material accounting policies	11~30
(5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty	30~31
(6) Explanation of significant accounts	31~68
(7) Related-party transactions	68~70
(8) Pledged assets	70
(9) Commitments and contingencies	71~72
(10) Losses due to major disasters	72
(11) Subsequent events	72
(12) Other	72
(13) Other disclosures
(a) Information on significant transactions	73~75
(b) Information on investees	75~76
(c) Information on investment in mainland China	76~77
(14) Segment information	77~79

Representation Letter

The entities that are required to be included in the combined financial statements of TAIWAN FERTILIZER CO., LTD. as of and for the year ended December 31, 2025 under the Criteria Governing the Preparation of Affiliation Reports, Consolidated Business Reports, and Consolidated Financial Statements of Affiliated Enterprises are the same as those included in the consolidated financial statements prepared in conformity with International Financial Reporting Standards No. 10, "Consolidated Financial Statements" endorsed by the Financial Supervisory commission of the Rebuplic of China. In addition, the information required to be disclosed in the combined financial statements is included in the consolidated financial statements. Consequently, TAIWAN FERTILIZER CO., LTD. and Subsidiaries do not prepare a separate set of combined financial statements.

Company name: TAIWAN FERTILIZER CO., LTD.
Chairman: Chang Lang, Chang
Date: March 4, 2026.

KPMG

李伐建業聯合會計師事務所

KPMG

台北市110615信義路5段7號68樓(台北101大樓)

68F., TAIPEI 101 TOWER, No. 7, Sec. 5,

Xinyi Road, Taipei City 110615, Taiwan (R.O.C.)

電話 Tel +886 2 8101 6666

傳真 Fax +886 2 8101 6667

網址 Web kpmg.com/tw

Independent Auditors’ Report

To the Board of Directors of TAIWAN FERTILIZER CO., LTD.:

Opinion

We have audited the consolidated financial statements of TAIWAN FERTILIZER CO., LTD. and its subsidiaries (“the Group”), which comprise the consolidated balance sheet as of December 31, 2025 and 2024, the consolidated statement of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of material accounting policies.

In our opinion, based on our audits and the report of other auditors (please refer to Other Matter paragraph), the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the year ended December 31, 2025 and 2024 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and with the International Financial Reporting Standards (“IFRSs”), International Accounting Standards (“IASs”), interpretation as well as related guidance endorsed by the Financial Supervisory Commission of the Republic of China.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group 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 of our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. The key audit matters that, in our professional judgment, should be communicated are as follows:

1. Inventory Valuation

For details of accounting policies related to inventory valuation, please refer to Note 4(h) Inventory of the financial statements. For details of uncertainties in accounting estimates and assumptions related to inventory valuation, please refer to Note 5(a) of the consolidated financial statements. For descriptions on inventory valuation, please refer to Note 6(f) of the consolidated financial statements:

KPMG, a Taiwan partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

KPMG
4-1

Key audit matter:

Description of key audit matter

The inventory amount of the Group is presented at the lower of costs and net realizable amount. As The price of material is subject to market volatility, the Group complies with the policy of Ministry of Agriculture in order to stabilize the domestic fertilizer price, which may, in turn, generate risks where the inventory costs are higher than the net realizable value. Therefore, inventory valuation is a matter that requires great attention for our audits on the consolidated financial statements.

How the matter was addressed in our audit:

Our audit procedures for the above key audit matters included understanding and evaluating management's inventory valuation policies; participating in the inventory count and inspecting the condition of inventory to assess whether any obsolete or damaged inventory; sampling the latest sales prices of inventory and assessing the reasonableness of net realizable value as well as determining whether the related disclosure items for inventory allowances are appropriate.

Other Matter

We did not audit the consolidated financial statements as of and for the years ended December 31, 2025 and 2024 of the certain investees in equity method. Those statements were audited by other auditors, whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included in the corporation's financial statements for these investees, is based solely on the report of other auditors. As of December 31, 2025 and 2024, the investments in the aforementioned investees are 11.59% (NT$9,444,994 thousand) and 11.46% (NT$9,295,657 thousand) of consolidated total assets. For the years ended December 31, 2025 and 2024, the investment income on the above said investees are 104.16% (NT$1,208,866 thousand) and 59.99% (NT$982,598 thousand) of the Group's income before income tax.

TAIWAN FERTILIZER CO., LTD. has additionally prepared its parent company only financial statements as of and for the years ended December 31, 2025 and 2024, on which we have issued an unqualified opinion.

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

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

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

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

KPMG
4-2

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the 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 consolidated financial statements.

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

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

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

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

KPMG
4-3

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

The engagement partners on the audit resulting in this independent auditors’ report are Chen, Chung-Che and Huang, Hsin-Ting.

KPMG

Taipei, Taiwan (Republic of China)
March 4, 2026

Notes to Readers

The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with the 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 consolidated financial statements are those generally accepted and applied in the Republic of China.

The independent auditors’ audit report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors’ audit report and consolidated financial statements, the Chinese version shall prevail.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Consolidated Balance Sheets

December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

Assets		December 31, 2025		December 31, 2024
Current assets:		Amount	%	Amount	%
1100	Cash and cash equivalents (notes 6(a) and (u))	$ 1,949,825	2	4,088,248	5
1110	Current financial assets at fair value through profit or loss (notes 6(b) and (u))	1,015,699	1	415,239	1
1120	Current financial assets at fair value through other comprehensive income (notes 6(c) and (u))	75,076	-	71,018	-
1150	Notes receivable, net (notes 6(d), (r) and (u))	12,417	-	84,310	-
1170	Accounts receivable, net (notes 6(d), (r), (u) and 7)	1,023,642	1	836,966	1
1200	Other receivables, net (notes 6(e), (u) and 7)	54,402	-	29,636	-
1220	Current tax assets	152,192	-	152,003	-
130X	Inventories (note 6(f))	3,150,379	4	2,831,582	3
1410	Prepayments	457,534	1	61,165	-
1476	Other current financial assets (notes 6(a), (u), 8 and 9)	595,256	1	615,752	1
1479	Other current assets, others	26,796	-	28,430	-
Total current assets		8,513,218	10	9,214,349	11
Non-current assets:
1517	Non-current financial assets at fair value through other comprehensive income (notes 6(c) and (u))	4,281,556	5	4,266,741	5
1550	Investments accounted for using equity method (notes 6(g) and (u))	9,490,939	12	9,355,255	12
1600	Property, plant and equipment (note 6(h))	12,447,104	16	12,863,925	16
1755	Right-of-use assets (note 6(i))	634,304	1	750,286	1
1760	Investment property, net (notes 6(j), (m) and 8)	45,688,370	56	43,969,027	55
1780	Intangible assets (note 6(k))	7,852	-	40,502	-
1840	Deferred tax assets (note 6(o))	384,134	-	275,417	-
1930	Long-term notes and accounts receivable, net (notes 6(e) and (u))	20,823	-	23,297	-
1980	Other non-current financial assets (notes 6(a), (u) and 8)	31,868	-	324,968	-
1990	Other non-current assets, others (note 6(u))	24,466	-	23,423	-
Total non-current assets		73,011,416	90	71,892,841	89

Total assets		$ 81,524,634	100	81,107,190	100
Liabilities and Equity		December 31, 2025		December 31, 2024
---	---	---	---	---	---
Current liabilities:		Amount	%	Amount	%
2130	Current contract liabilities (note 6(r))	$ 118,101	-	109,420	-
2170	Accounts payable (notes 6(u) and 7)	321,257	-	290,535	-
2200	Other payables (notes 6(u) and 9)	1,499,783	2	752,734	1
2230	Current tax liabilities	242,840	-	117,510	-
2280	Current lease liabilities (note 6(u))	35,324	-	43,572	-
2313	Unearned revenue (note 6(j))	440,898	1	440,898	1
2315	Other advance receipts	1,851	-	471	-
2399	Other current liabilities, others	15,523	-	20,433	-
Total current liabilities		2,675,577	3	1,775,573	2
Non-Current liabilities:
2540	Long-term borrowings (notes 6(l), (u), 7 and 8)	500,000	1	-	-
2550	Non-current provisions (note 9)	504,558	1	555,120	1
2570	Deferred tax liabilities (note 6(o))	6,954,014	8	6,896,430	8
2580	Non-current lease liabilities (note 6(u))	1,365	-	38,439	-
2630	Long-term deferred revenue (note 6(j))	16,192,886	20	15,659,227	19
2640	Net defined benefit liability, non-current (note 6(n))	40,857	-	87,374	-
2645	Guarantee deposits received (note 6(u))	380,684	-	405,792	1
Total non-current liabilities		24,574,364	30	23,642,382	29
Total liabilities		27,249,941	33	25,417,955	31
Equity attributable to owners of parent (note 6(p)):
3100	Capital stock	9,800,000	12	9,800,000	12
3200	Capital surplus	2,246,165	3	2,245,108	3
Retained earnings:
3310	Legal reserve	4,859,413	6	4,660,794	6
3320	Special reserve	30,541,720	38	30,541,720	38
3350	Unappropriated retained earnings	2,761,927	3	3,991,828	5
3400	Other equity interest	4,065,468	5	4,449,785	5
Total equity		54,274,693	67	55,689,235	69
Total liabilities and equity		$ 81,524,634	100	81,107,190	100

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Common Share)

	2025		2024
		Amount	%	Amount	%
4000	Operating revenue (notes 6(j), (m) and (r))	$ 12,087,709	100	11,873,258	100
5000	Operating costs (notes 6(f), (n) and 12)	(10,504,701)	(87)	(10,088,819)	(85)
5900	Gross profit from operations	1,583,008	13	1,784,439	15
	Operating expenses (notes 6(d), (n), (s) and 12):
6100	Selling expenses	(207,571)	(2)	(258,175)	(2)
6200	Administrative expenses	(977,489)	(8)	(937,261)	(8)
6300	Research and development expenses	(35,405)	-	(39,297)	-
6450	Expected credit losses	(455)	-	-	-
		(1,220,920)	(10)	(1,234,733)	(10)
6900	Net operating income	362,088	3	549,706	5
	Non-operating income and expenses:
7100	Interest income (note 6(t))	53,650	-	74,738	1
7010	Other income (note 6(t))	122,949	1	101,203	1
7020	Other gains and losses (notes 6(t) and 12)	(575,348)	(4)	(67,107)	(1)
7050	Finance costs (note 6(t))	(4,868)	-	(2,006)	-
7060	Share of profit of associates and joint ventures accounted for using equity method (note 6(g))	1,202,076	10	981,290	8
	Total non-operating income and expenses	798,459	7	1,088,118	9
	Profit from continuing operations before tax	1,160,547	10	1,637,824	14
7950	Income tax (expenses) benefit (note 6(o))	(228,308)	(2)	327,825	3
	Profit	932,239	8	1,965,649	17
8300	Other comprehensive (loss) income:
8310	Components of other comprehensive (loss) income that will not be reclassified to profit or loss
8311	(Losses) gains on remeasurements of defined benefit plans	(4,742)	-	14,980	-
8316	Unrealized (losses) gains from investments in equity instruments measured at fair value through other comprehensive income	(56,191)	-	1,027,758	9
8320	Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss	273	-	(1,508)	-
8349	Income tax related to components of other comprehensive income that will not be reclassified to profit or loss	948	-	(2,996)	-
	Components of other comprehensive (loss) income that will not be reclassified to profit or loss	(59,712)	-	1,038,234	9
8360	Components of other comprehensive (loss) income that will be reclassified to profit or loss
8361	Exchange differences on translation of foreign financial statements	(6,430)	-	4,747	-
8370	Share of other comprehensive (loss) income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will be reclassified to profit or loss	(402,172)	(4)	611,204	4
8399	Income tax related to components of other comprehensive income (loss) that will be reclassified to profit or loss	80,476	1	(122,301)	(1)
	Components of other comprehensive (loss) income that will be reclassified to profit or loss	(328,126)	(3)	493,650	3
8300	Other comprehensive income	(387,838)	(3)	1,531,884	12
8500	Total comprehensive income	$ 544,401	5	3,497,533	29
	Profit, attributable to:
8610	Profit, attributable to owners of parent	$ 932,239	8	1,965,649	17
	Comprehensive income attributable to:
8710	Comprehensive income, attributable to owners of parent	$ 544,401	5	3,497,533	29
	Earnings per share (note 6(q))
9750	Basic earnings per share	$	0.95		2.01
9850	Diluted earnings per share	$	0.95		2.00

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

	Equity attributable to owners of parent
	Share capital		Retained earnings				Total other equity interest			Total equity
	Ordinary shares	Capital surplus	Legal reserve	Special reserve	Unappropriated retained earnings	Total retained earnings	Exchange differences on translation of foreign financial statements	Unrealized gains (losses) on financial assets measured at fair value through other comprehensive income	Total other equity interest
Balance at January 1, 2024	$ 9,800,000	2,245,108	4,253,603	30,541,720	4,960,832	39,756,155	255,805	2,682,634	2,938,439	54,739,702
Profit	-	-	-	-	1,965,649	1,965,649	-	-	-	1,965,649
Other comprehensive income	-	-	-	-	10,476	10,476	493,650	1,027,758	1,521,408	1,531,884
Total comprehensive income	-	-	-	-	1,976,125	1,976,125	493,650	1,027,758	1,521,408	3,497,533
Appropriation and distribution of retained earnings:
Legal reserve appropriated	-	-	407,191	-	(407,191)	-	-	-	-	-
Cash dividends of ordinary share	-	-	-	-	(2,548,000)	(2,548,000)	-	-	-	(2,548,000)
Disposal of equity instruments measured at fair value through other comprehensive income	-	-	-	-	10,062	10,062	-	(10,062)	(10,062)	-
Balance at December 31, 2024	9,800,000	2,245,108	4,660,794	30,541,720	3,991,828	39,194,342	749,455	3,700,330	4,449,785	55,689,235
Profit	-	-	-	-	932,239	932,239	-	-	-	932,239
Other comprehensive income	-	-	-	-	(3,521)	(3,521)	(328,126)	(56,191)	(384,317)	(387,838)
Total comprehensive income	-	-	-	-	928,718	928,718	(328,126)	(56,191)	(384,317)	544,401
Appropriation and distribution of retained earnings:
Legal reserve appropriated	-	-	198,619	-	(198,619)	-	-	-	-	-
Cash dividends of ordinary share	-	-	-	-	(1,960,000)	(1,960,000)	-	-	-	(1,960,000)
Overdue dividends not received by shareholders	-	1,057	-	-	-	-	-	-	-	1,057
Balance at December 31, 2025	$ 9,800,000	2,246,165	4,859,413	30,541,720	2,761,927	38,163,060	421,329	3,644,139	4,065,468	54,274,693

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

	For the years ended December 31
	2025	2024
Cash flows from (used in) operating activities:
Profit before tax	$ 1,160,547	1,637,824
Adjustments:
Adjustments to reconcile profit (loss):
Depreciation expense	1,436,925	1,410,080
Amortization expense	3,262	2,900
Expected credit losses	455	-
Net gain on financial assets and liabilities at fair value through profit or loss	(8,309)	(5,080)
Interest expense	4,868	2,006
Interest income	(53,650)	(74,738)
Dividend income	(81,529)	(85,265)
Share of profit of associates and joint ventures accounted for using equity method	(1,202,076)	(981,290)
Loss on disposal of property, plant and equipment	925	138
Impairment loss on non-financial assets	35,900	75,015
Unrealized foreign currency exchange gain	(2,465)	(2,310)
Property, plant and equipment transferred to expenses	335	9
Investment property transferred to expenses	2,381	-
Compensation	499,000	-
Total adjustments to reconcile profit	636,022	341,465
Changes in operating assets and liabilities:
Decrease (increase) in notes receivable	71,893	(5,117)
Increase in accounts receivable	(187,131)	(80,289)
Decrease in other receivable	5,951	829,943
Increase in inventories	(318,797)	(246,868)
(Increase) decrease in prepayments	(396,458)	469,529
Decrease (increase) in other current assets	1,634	(12,049)
Total changes in operating assets	(822,908)	955,149
Increase in contract liabilities	8,681	1,402
Decrease in notes payable	-	(11,228)
Increase (decrease) in accounts payable	30,722	(91,466)
Increase (decrease) in other payable	145,839	(108,753)
Increase in provisions	49,438	-
Increase (decrease) in receipts in advance	1,380	(578)
Decrease in other current liabilities	(4,910)	(14,981)
Decrease in net defined benefit liabilities	(51,259)	(5,259)
Increase (decrease) in deferred credits	533,659	(418,745)
Total changes in operating liabilities	713,550	(649,608)
Total changes in operating assets and liabilities	(109,358)	305,541
Total adjustments	526,664	647,006
Cash inflow generated from operations	1,687,211	2,284,830
Interest received	54,510	73,674
Dividends received	706,277	1,611,730
Interest paid	(4,868)	(2,006)
Income taxes paid	(72,876)	(262,766)
Net cash flows from operating activities	2,370,254	3,705,462

8-1

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Cash Flows (CONT'D)

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

	For the years ended December 31
	2025	2024
Cash flows from (used in) investing activities:
Acquisition of financial assets at fair value through other comprehensive income	(95,500)	(36,000)
Proceeds from capital reduction of financial assets at fair value through other comprehensive income	27,300	11,742
Acquisition of financial assets designated at fair value through profit or loss	(2,800,000)	(1,585,000)
Proceeds from disposal of financial assets designated at fair value through profit or loss	2,207,849	1,254,866
Acquisition of property, plant and equipment	(472,031)	(523,605)
Decrease in other receivables	3,778	38,489
Acquisition of intangible assets	(6,512)	-
Acquisition of investment properties	(2,153,614)	(726,447)
Decrease in other financial assets	313,596	241,971
(Increase) decrease in other non-current assets	(1,043)	380
Net cash flows used in investing activities	(2,976,177)	(1,323,604)
Cash flows from (used in) financing activities:
Increase in short-term loans	1,600,000	-
Decrease in short-term loans	(1,600,000)	-
Proceeds from long-term loans	500,000	-
Decrease in guarantee deposits received	(25,108)	(39,606)
Repayment of lease liabilities	(43,943)	(41,467)
Cash dividends paid	(1,960,000)	(2,548,000)
Net cash flows used in financing activities	(1,529,051)	(2,629,073)
Effect of exchange rate changes on cash and cash equivalents	(3,449)	6,649
Net decrease in cash and cash equivalents	(2,138,423)	(240,566)
Cash and cash equivalents at beginning of period	4,088,248	4,328,814
Cash and cash equivalents at end of period	$ 1,949,825	4,088,248

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

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

(1) Company history:

TAIWAN FERTILIZER CO., LTD. (the "Company"). was incorporated in May 1946. The Company's registered office address is located at 17F, No.170, Jingmao 1st Rd., Nangang Dist., Taipei City 115018, Taiwan. The Company and its subsidiaries (together referred to as the "Group") is mainly engaged in manufactures and sells inorganic and organic fertilizers and other chemical products, constructs and leases real estate services. The Group's shares were listed on the TSEC since March 24, 1998.

(2) Approval date and procedures of the consolidated financial statements:

The accompanying consolidated financial statements were authorized for issue by the Board of Directors on, March 4, 2026.

(3) New standards, amendments and interpretations adopted:

(a) The impact of the IFRS Accounting Standards endorsed by the Financial Supervisory Commission, R.O.C. which have already been adopted.

The Group has initially adopted the following new amendments, which do not have a significant impact on its consolidated financial statements, from January 1, 2025:

Amendments to IAS21 "Lack of Exchangeability"
Amendments to IFRS 9 and IFRS 7 "Amendments to the Classification and Measurement of Financial Instruments" regarding the application guidance requirements for Section 4.1 of IFRS 9 and the related disclosure requirements of IFRS 7

(b) The impact of IFRS Accounting Standards endorsed by the FSC but not yet effective

The Group assesses that the adoption of the following new amendments, effective for annual period beginning on January 1, 2026, would not have a significant impact on its consolidated financial statements:

IFRS 17 "Insurance Contracts" and amendments to IFRS 17 "Insurance Contracts"
Amendments to IFRS 9 and IFRS 7 "Amendments to the Classification and Measurement of Financial Instruments" regarding the application guidance requirements for Sections 3.1 and 3.3 of IFRS 9 and the related disclosure requirements of IFRS 7
Annual Improvements to IFRS Accounting Standards
Amendments to IFRS 9 and IFRS 7 "Contracts Referencing Nature-dependent Electricity"

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

The following new and amended standards, which may be relevant to the Group, have been issued by the International Accounting Standards Board (IASB), but have yet to be endorsed by the FSC:

Standards or Interpretations	Content of amendment	Effective date per IASB
IFRS 18 “Presentation and Disclosure in Financial Statements”	The new standard introduces three categories of income and expenses, two income statement subtotals and one single note on management performance measures. The three amendments, combined with enhanced guidance on how to disaggregate information, set the stage for better and more consistent information for users, and will affect all the entities.

• A more structured income statement: under current standards, companies use different formats to present their results, making it difficult for investors to compare financial performance across companies. The new standard promotes a more structured income statement, introducing a newly defined ‘operating profit’ subtotal and a requirement for all income and expenses to be allocated between three new distinct categories based on a company’s main business activities.

• Management performance measures (MPMs): the new standard introduces a definition for management performance measures, and requires companies to explain in a single note to the financial statements why the measure provides useful information, how it is calculated and reconcile it to an amount determined under IFRS Accounting Standards.

• Greater disaggregation of information: the new standard includes enhanced guidance on how companies group information in the financial statements. This includes guidance on whether information is included in the primary financial statements or is further disaggregated in the notes. | January 1, 2027
Note: On September 25, 2025, the FSC issued a press release announcing that Taiwan will adopt IFRS 18 beginning in 2028. Entities that need to adopt the new standard earlier may do with the endorsement of the FSC. |

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

The Group is evaluating the impact on its consolidated financial position and consolidated financial performance upon the initial adoption of the abovementioned standards or interpretations. The results thereof will be disclosed when the Group completes its evaluation.

The Group does not expect the following other new and amended standards, which have yet to be endorsed by the FSC, to have a significant impact on its consolidated financial statements:

Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”
IFRS 19 “Subsidiaries without Public Accountability: Disclosures” and amendments to IFRS 19 “Subsidiaries without Public Accountability: Disclosures”
Amendments to IAS 21 “Translation to a Hyperinflationary Presentation Currency”

(4) Summary of material accounting policies:

(a) Statement of compliance

These consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (hereinafter referred to as “the Regulations”) and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations endorsed and issued into effect by the Financial Supervisory Commission, R.O.C. (altogether referred to “IFRS Accounting Standards” endorsed by the “FSC”)

(b) Basis of preparation

(i) Basis of measurement

The consolidated financial statements have been prepared on the historical cost basis except for the following material items in the balance sheets :

1) Financial instruments at fair value through profit or loss are measured at fair value;
2) Financial assets at fair value through other comprehensive income are measured at fair value;
3) The defined benefit liabilities (assets) are measured at fair value of the plan assets less the present value of the defined benefit obligation, limited as explained in note 4(r).

(ii) Functional and presentation currency

The functional currency of each Group entities is determined based on the primary economic environment in which the entities operate. The consolidated financial statements are presented in New Taiwan Dollar, which is the Group’s functional currency. All financial information presented in New Taiwan Dollar has been rounded to the nearest thousand.

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(i) Principle of preparation of the consolidated financial statements

The consolidated financial statements comprise the Group and subsidiaries. Subsidiaries are entities controlled by the Group. The Group ‘controls’ an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases. Intragroup balances and transactions, and any unrealized income and expenses arising from Intragroup transactions are eliminated in preparing the consolidated financial statements. The Group attributes the profit or loss and each component of other comprehensive income to the owners of the parent and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance.

The Group prepares consolidated financial statements using uniform accounting policies for like transactions and other events in similar circumstances. Changes in the Group’s ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received will be recognized directly in equity, and the Group will attribute it to the owners of the parent.

When the Group loses control over a subsidiary, it derecognizes the assets (including any goodwill) and liabilities of the subsidiary, and any related non-controlling interests and other components of equity. Any interest retained in the former subsidiary is measured at fair value when control is lost, with the resulting gain or loss being recognized in profit or loss. The Group recognizes as gain or loss in profit or loss the difference between (i) the fair value of the consideration received as well as any investment retained in the former subsidiary at its fair value at the date when control is lost; and (ii) the assets (including any goodwill), liabilities of the subsidiary as well as any related non-controlling interests at their carrying amounts at the date when control is lost, as gain or loss in profit or loss. When the Group loses control of its subsidiary, it accounts for all amounts previously recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required if it had directly disposed of the related assets or liabilities.

(ii) List of subsidiaries included in the consolidated financial statements:

Investor	Subsidiary	Nature of business	Shareholding ratio		Notes
			December 31, 2025	December 31, 2024
The Company	Taifer Investment Co., Ltd.	Investment, international trade, real estate rental or leasing and gas station	100 %	100 %	Note 2
The Company	TAIFER (CAYMAN) INTERNATIONAL GROUP CO., LTD.	Investment and holding	100 %	100 %	Note 4
The Company	Taiwan Yes Deep Ocean Water Co., Ltd.	Wholesale of drinks, food and grocery	100 %	100 %

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Investor	Subsidiary	Nature of business	Shareholding ratio		Notes
			December 31, 2025	December 31, 2024
The Company	TAIFER (CAMBODIA) CO., LTD.	International trade and wholesale of fertilizer	100 %	100 %	Note 1
The Company	PEIFENG Technology & Fertilizer Co., Ltd.	Manufacture and wholesale of fertilizer	100 %	100 %
The Company	Tai Ying Sustainability Co., Ltd.	Chemical industries, chemical products manufacturing and wholesale	100 %	- %	Note 3
Taiwan Yes Deep Ocean Water Co., Ltd.	TAIFER INTERNATIONAL (SAMOA) GROUP CO., LTD.	Investment and holding	100 %	100 %
TAIFER INTERNATIONAL (SAMOA) GROUP CO., LTD	TAIFER CHEMICAL INTERNATIONAL LLC	Real estate rental and leasing	100 %	100 %

Note 1: TAIFER (CAMBODIA) Co., Ltd. has filed for business suspension in Cambodia in June 2023, wherein the relevant legal procedures are still in process.

Note 2: Taifer Investment Co., Ltd. (formerly known as Taifer Chemicals International Inc.) was approved by the Board of Directors, which was acting on behalf of the shareholders at the shareholders' meeting on March 29, 2024, to terminate the gas station operation business and transform into an investment company on May 31, 2024, in line with the Group's operation plan.

Note 3: The Company resolved by the Board of Directors on August 12, 2025 to establish a wholly owned subsidiary dedicated to the development of the clean energy business to expand the Group's new sources of profit.

Note 4: The Company was liquidated on December 10, 2025, with the approval of its board, wherein the related statutory procedures were still in progress as of the reporting date.

(iii) Subsidiaries excluded from the consolidated financial statements: None.

(d) Foreign currency

(i) Foreign currency transaction

Transactions in foreign currencies are translated into the respective functional currencies of Group entities at the exchange rates at the dates of the transactions. At the end of each subsequent reporting period, monetary items denominated in foreign currencies are translated into the functional currencies using the exchange rate at that date. Non-monetary items denominated in foreign currencies that are measured at fair value are translated into the functional currencies using the exchange rate at the date that the fair value was determined. Nonmonetary items denominated in foreign currencies that are measured based on historical cost are translated using the exchange rate at the date of the transaction.

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Exchange differences are generally recognized in profit or loss, except for those differences relating to the following, which are recognized in other comprehensive income:

1) an investment in equity securities designated as at fair value through other comprehensive income;
2) a financial liability designated as a hedge of the net investment in a foreign operation to the extent that the hedge is effective; or
3) qualifying cash flow hedges to the extent that the hedges are effective.

(ii) Foreign operations

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated into the presentation currency at the exchange rates at the reporting date. The income and expenses of foreign operations are translated into the presentation currency at the average exchange rate. Exchange differences are recognized in other comprehensive income.

When a foreign operation is disposed of such that control, significant influence, or joint control is lost, the cumulative amount in the translation reserve related to that foreign operation is reclassified to profit or loss as part of the gain or loss on disposal. When the Group disposes of only part of its interest in a subsidiary that includes a foreign operation while retaining control, the relevant proportion of the cumulative amount is reattributed to noncontrolling interests. When the Group disposes of only part of its investment in an associate or joint venture that includes a foreign operation while retaining significant influence or joint control, the relevant proportion of the cumulative amount is reclassified to profit or loss.

When the settlement of a monetary receivable from or payable to a foreign operation is neither planned nor likely to occur in the foreseeable future. Exchange differences arising from such a monetary item that are considered to form part of the net investment in the foreign operation are recognized in other comprehensive income.

(e) Classification of current and non-current assets and liabilities

The Group classifies the asset as current under one of the following criteria, and all other assets are classified as non current.

(i) It expects to realize the asset, or intends to sell or consume it, in its normal operating cycle;
(ii) It holds the asset primarily for the purpose of trading;
(iii) It expects to realize the asset within twelve months after the reporting period; or
(iv) The asset is cash or a cash equivalent (as defined in IAS 7) unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

The Group classifies the liability as current under one of the following criteria, and all other liabilities are classified as non current.

(i) It expects to settle the liability in its normal operating cycle;
(ii) It holds the liability primarily for the purpose of trading
(iii) The liability is due to be settled within twelve months after the reporting period; or
(iv) It does not have the right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period.

(f) Cash and cash equivalents

Cash comprises cash on hand and demand deposits. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. Time deposits which meet the above definition and are held for the purpose of meeting shortterm cash commitments rather than for investment or other purposes should be recognized as cash equivalents.

(g) Financial instruments

Trade receivables and debt securities issued are initially recognized when they are originated. All other financial assets and financial liabilities are initially recognized when the Group becomes a party to the contractual provisions of the instrument. A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at fair value through profit or loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price.

(i) Financial assets

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

On initial recognition, a financial asset is classified as measured at: amortized cost; Fair value through other comprehensive income (FVOCI) – debt investment; FVOCI – equity investment; or FVTPL. Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.

1) Financial assets measured at amortized cost

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:

it is held within a business model whose objective is to hold assets to collect contractual cash flows; and

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

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

These assets are subsequently measured at amortized cost, which is the amount at which the financial asset is measured at initial recognition, plus/minus, the cumulative amortization using the effective interest method, adjusted for any loss allowance. Interest income, foreign exchange gains and losses, as well as impairment, are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.

2) Fair value through other comprehensive income (FVOCI)

A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:

it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and
its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to present subsequent changes in the investment’s fair value in other comprehensive income. This election is made on an instrument-by-instrument basis.

Debt investments at FVOCI are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognized in profit or loss. Other net gains and losses are recognized in other comprehensive income. On derecognition, gains and losses accumulated in other comprehensive income are reclassified to profit or loss.

Equity investments at FVOCI are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized in other comprehensive income and are never reclassified to profit or loss.

Dividend income is recognized in profit or loss on the date on which the Group’s right to receive payment is established.

3) Fair value through profit or loss (FVTPL)

All financial assets not classified as amortized cost or FVOCI described as above are measured at FVTPL, including derivative financial assets and accounts receivable (except for those presented as accounts receivable but measured at FVTPL). On initial recognition, the Group may irrevocably designate a financial asset, which meets the requirements to be measured at amortized cost or at FVOCI, as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss.

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

4) Impairment of financial assets

The Group recognizes loss allowances for expected credit losses (ECL) on financial assets measured at amortized cost (including cash and cash equivalents, amortized costs, notes and trade receivables, other receivable, leases receivable, guarantee deposit paid and other financial assets), debt investments measured at FVOCI and contract assets.

The Group measures loss allowances at an amount equal to lifetime ECL, except for the following which are measured as 12-month ECL:

debt securities that are determined to have low credit risk at the reporting date; and
other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition.

Loss allowance for trade receivables and contract assets are always measured at an amount equal to lifetime ECL.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECL, the Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis based on the Group's historical experience and informed credit assessment as well as forward-looking information.

The Group considers a debt security to have low credit risk when its credit risk rating is equivalent to the globally understood definition of 'investment grade which is considered to be BBB- or higher per Standard & Poor's, Baa3 or higher per Moody's or twA or higher per Taiwan Ratings'.

Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument.

12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).

The maximum period considered when estimating ECLs is the maximum contractual period over which the Group is exposed to credit risk.

ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e the difference between the cash flows due to the Group in accordance with the contract and the cash flows that the Group expects to receive). ECLs are discounted at the effective interest rate of the financial asset.

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

At each reporting date, the Group assesses whether financial assets carried at amortized cost and debt securities at FVOCI are credit-impaired. A financial asset is ‘credit-impaired’ when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. Evidence that a financial asset is credit-impaired includes the following observable data:

significant financial difficulty of the borrower or issuer;
a breach of contract such as a default or being more than 180 days past due;
the lender of the borrower, for economic or contractual reasons relating to the borrower's financial difficulty, having granted to the borrower a concession that the lender would not otherwise consider;
it is probable that the borrower will enter bankruptcy or other financial reorganization; or
the disappearance of an active market for a security because of financial difficulties.

Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets. For debt securities at FVOCI, the loss allowance is charge to profit or loss and is recognized in other comprehensive income instead of reducing the carrying amount of the asset.

The gross carrying amount of a financial asset is written off when the Group has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. For corporate customers, the Group individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. The Group expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Group’s procedures for recovery of amounts due.

5) Derecognition of financial assets

The Group derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Group neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

The Group enters into transactions whereby it transfers assets recognized in its statement of balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognized.

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(ii) Financial liabilities and equity instruments

1) Classification of debt or equity

Debt and equity instruments issued by the Group are classified as financial liabilities or equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

2) Equity instrument

An equity instrument is any contract that evidences residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued are recognized as the amount of consideration received, less the direct cost of issuing.

3) Treasury shares

When shares recognized as equity are repurchased, the amount of the consideration paid, which includes directly attributable costs, is recognized as a deduction from equity. Repurchased shares are classified as treasury shares. When treasury shares are sold or reissued subsequently, the amount received is recognized as an increase in equity, and the resulting surplus or deficit on the transaction is recognized in capital surplus or retained earnings (if the capital surplus is not sufficient to be written down).

4) Financial liabilities

Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in profit or loss.

Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on derecognition is also recognized in profit or loss.

5) Derecognition of financial liabilities

The Group derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. The Group also derecognizes a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value.

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

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

6) Offsetting of financial assets and liabilities

Financial assets and financial liabilities are offset and the net amount presented in the statement of balance sheet when, and only when, the Group currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously.

7) Financial guarantee contract

A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due in accordance with the original or modified terms of a debt instrument.

Financial guarantee contract liabilities are measured initially at their fair values and, if not designated as at FVTPL and do not arise from a transfer of an asset, are measured subsequently at the higher of: (a) the amount of the loss allowance determined in accordance with IFRS 9; and (b) the amount recognized initially less, where appropriate, cumulative amortization recognized in accordance with the revenue recognition policies set out below.

(h) Inventories

Inventories included Raw materials, finished goods, merchandise, and construction-in-progress—land and projects. Inventories are measured at the lower of cost and net realizable value. The cost of inventories is based on the weighted average method, and includes expenditure incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing them to their present location and condition. In the case of manufactured inventories and work in progress, cost includes an appropriate share of production overheads based on normal operating capacity.

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated cost, of completion and selling expenses.

(i) Investment in associates

Associates are those entities in which the Group has significant influence, but not control or joint control, over the financial and operating policies.

Investments in associates are accounted for using the equity method and are recognized initially at cost. The cost of the investment includes transaction costs. The carrying amount of the investment in associates includes goodwill arising from the acquisition, less any accumulated impairment losses.

The consolidated financial statements include the Group’s share of the profit or loss and other comprehensive income of equity accounted investees, after adjustments to align their accounting policies with those of the Group, from the date on which significant influence commences until the date on which significant influence ceases.

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

When changes in an associate’s equity are not recognized in profit or loss or other comprehensive income of the associate and such changes do not affect the Group’s ownership percentage of the associate, the Group recognizes the Group’s share of change in equity of the associate in capital reserves in proportion to its ownership.

Gains and losses resulting from the transactions between the Group and an associate are recognized only to the extent of unrelated Group’s interests in the associate.

When the Group’s share of losses of an associate equals or exceeds its interest in an associate, it discontinues recognizing its share of further losses. After the recognized interest is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate.

(j) Investment property

Investment property is property held either to earn rental income or for capital appreciation or for both, but not for sale in the ordinary course of business or for administrative purposes. Investment property is measured at cost on initial recognition. Subsequent to initial recognition, investment property is measured at initial acquisition cost less accumulated depreciation and accumulated impairment losses. The methods for depreciating and determining the useful life and residual value of investment property are the same as those adopted for property, plant and equipment.

Any gain or loss on disposal of an investment property (calculated as the difference between the net proceeds from disposal and the carrying amount) is recognized in profit or loss.

Rental income from investment property is recognized as other revenue on a straight-line basis over the term of the lease. Lease incentives granted are recognized as an integral part of the total rental income, over the term of the lease.

(k) Property, plant and equipment

(i) Recognition and measurement

Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. The cost of certain items of property, plant and equipment on January 1, 2012, the Group’s date of transition to the Standards, was determined with reference to its fair value at that date.

If significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

Any gain or loss on disposal of an item of property, plant and equipment is recognized in profit or loss.

(ii) Subsequent expenditure

Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to the Group.

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(iii) Depreciation

Depreciation is calculated on the depreciable amount of an asset using the straight-line basis over its useful life. The depreciable amount of an asset is determined based on the cost less its residual value.

Land has an unlimited useful life and therefore is not depreciated.

The estimated useful lives for the current and comparative years of significant items of property, plant and equipment are as follows:

(1) Buildings 3~60 years
(2) Machine 3~40 years
(3) Instrument equipment 3~15 years
(4) Miscellaneous equipment 3~15 years

Item	Useful lives	Item	Useful lives
Buildings:		Machine:
Leasehold improvements and others	3~15 years	Production equipment	3~15 years
Buildings, warehouses, storage sheds	16~60 years	Storage tanks, power transmission systems, etc.	16~40 years

Depreciation methods, useful lives, and residual values are reviewed at each annual reporting date and adjusted it appropriate.

(iv) Reclassification as investment property

A property is reclassified to investment property at its carrying amount when the use of the property changes from owner-occupied to investment property.

(l) Leases

(i) Identifying a lease

At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Group assesses whether:

1) the contract involves the use of an identified asset – this may be specified explicitly or implicitly, and should be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution right, then the asset is not identified; and
2) the customer has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use; and

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

3) the customer has the right to direct the use of the asset throughout the period of use only if either:

the customer has the right to direct how and for what purpose the asset is used throughout the period of use; or
the relevant decisions about how and for what purpose the asset is used are predetermined and:
the customer has the right to operate the asset throughout the period of use, without the supplier having the right to change those operating instructions; or
the customer designed the asset in a way that predetermines how and for what purpose it will be used throughout the period of use.

On the day after the lease is completed or when the contract is re-evaluated to include a lease, the Group allocates the consideration in the contract to individual lease components on the basis of a relatively separate price. However, when leasing land and buildings, the Group chooses not to distinguish between non-lease components but treat lease components and non-lease components as a single lease component.

(ii) As a lessee

The Group recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be reliably determined, the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the lease liability comprise the following:

fixed payments including in-substance fixed payments;
variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;
amounts expected to be payable under a residual value guarantee; and
payments for purchase or termination options that are reasonably certain to be exercised.

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

The lease liability is measured at amortized cost using the effective interest method. It is remeasured when:

there is a change in future lease payments arising from the change in an index or rate; or
there is a change in the Group’s estimate of the amount expected to be payable under a residual value guarantee; or
there is a change of the valuation of the underlying asset purchase option; or
there is a change of its assessment on whether it will exercise a purchase, extension or termination option; or
there is any lease modifications

When the lease liability is remeasured, other than lease modifications, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or in profit and loss if the carrying amount of the right-of-use asset has been reduced to zero.

When the lease liability is remeasured to reflect the partial or full termination of the lease for lease modifications that decrease the scope of the lease, the Group accounts for the remeasurement of the lease liability by decreasing the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease, and recognize in profit or loss any gain or loss relating to the partial or full termination of the lease.

The Group presents right-of-use assets that do not meet the definition of investment and lease liabilities as a separate line item respectively in the statement of financial position.

The Group has elected not to recognize right-of-use assets and lease liabilities for short-term leases of miscellaneous equipment that have a lease term of 12 months or less and leases of low-value assets, including IT equipment. The Group recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

(iii) As a lessor

When the Group acts as a lessor, it determines at lease commencement whether each lease is a finance lease or an operating lease. To classify each lease, the Group makes an overall assessment of whether the lease transfers to the lessee substantially all of the risks and rewards of ownership incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then the lease is an operating lease. As part of this assessment, the Group considers certain indicators such as whether the lease is for the major part of the economic life of the asset.

When the Group is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. If a head lease is a short-term lease to which the Group applies the exemption described above, then it classifies the sub-lease as an operating lease.

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

If an arrangement contains lease and non-lease components, the Group applies IFRS15 to allocate the consideration in the contract.

For operating leases, the Group recognizes the lease payments received as lease revenue during the lease period on a straight-line basis.

(m) Intangible assets

(i) Recognition and measurement

Goodwill arising on the acquisition of subsidiaries is measured at cost, less accumulated impairment losses.

Expenditure on research activities is recognized in profit or loss as incurred.

Development expenditure is capitalized only if the expenditure can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable and the Group intends to, and has sufficient resources to, complete development and to use or sell the asset. Otherwise, it is recognized in profit or loss as incurred. Subsequent to initial recognition, development expenditure is measured at cost, less accumulated amortization and any accumulated impairment losses.

Other intangible assets that are acquired by the Group and have finite useful lives are measured at cost less accumulated amortization and any accumulated impairment losses.

(ii) Subsequent Expenditure

Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditures, including expenditure on internally generated goodwill and brands, is recognized in profit or loss as incurred.

(iii) Amortization

Amortization is calculated over the cost of the asset, less its residual value, and is recognized in profit or loss on a straight-line basis over the estimated useful lives of intangible assets, other than goodwill, from the date that they are available for use.

The estimated useful lives for current and comparative periods are as follows:

Computer software cost	5 years
Patent	7~8 years

Amortization methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(n) Impairment of non financial assets

At each reporting date, the Group reviews the carrying amounts of its non-financial assets (other than inventories, contract assets, deferred tax assets and investment properties and biological assets, measured at fair value, less costs) to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. Goodwill is tested annually for impairment.

For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGUs. Goodwill arising from a business combination is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the combination.

The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU.

An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its recoverable amount.

Impairment losses are recognized in profit or loss. They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis.

An impairment loss in respect of goodwill is not reversed. For other assets, an impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.

(o) Provisions

A provision is recognized if, as a result of a past event, the Group has a present obligation that can be estimated reliably, and an outflow of economic benefits is possibly required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects the current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognized as finance cost.

Carbon fees

Carbon fees levied in accordance with Taiwan’s Climate Change Response Act and Regulations Governing the Collection of Carbon Fees are recognized when the annual greenhouse gas emissions are probably to exceed the threshold. The provision for the carbon fee is measured based on the ratio of greenhouse gas emissions incurred to total emissions during the reporting period.

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(p) Revenue Recognition

(i) Revenue from contracts with customers

Revenue is measured based on the consideration to which the Group expects to be entitled in exchange for transferring goods or services to a customer. The Group recognizes revenue when it satisfies a performance obligation by transferring control of a good or a service to a customer. The accounting policies for the Group’s main types of revenue are explained below.

1) Sale of goods

The Group manufactures and sells fertilizer products to market. The Group recognizes revenue when control of the products has transferred, being when the products are delivered to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, the acceptance provisions have lapsed, or the Group has objective evidence that all criteria for acceptance have been satisfied.

A receivable is recognized when the goods are delivered as this is the point in time that the Group has a right to an amount of consideration that is unconditional.

2) Land development and sale of real estate

The Group develops and sells residential properties and usually sales properties in advance during construction or before construction begins. Revenue is recognized when control over the properties has been transferred to the customer. The properties have generally no alternative use for the Group due to contractual restrictions. However, an enforceable right to payment does not arise until legal title of a property has passed to the customer. Therefore, revenue is recognized at a point in time when the legal title has passed to the customer.

The revenue is measured at the transaction price agreed under the contract. For sale of readily available house, in most cases, the consideration is due when legal title of a property has been transferred. While deferred payment terms may be agreed in rare circumstances, the deferral never exceeds twelve months. The transaction price is therefore not adjusted for the effects of a significant financing component. For pre-selling properties, the consideration is usually received by installment during the period from contract inception until the transfer of properties to the customer. If the contract includes a significant financing component, the transaction price will be adjusted for the effects of the time value of money during the period, using the specific borrowing rate of the construction project. Receipt of a prepayment from a customer is recognized as contract liability. Interest expense and contract liability are recognized when adjusting the effects of the time value of money. Accumulated amount of contract liability is recognized as revenue when control over the property has been transferred to the customer.

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

3) The Group’s operating leasing business is classified into operating leases based on lease conditions and the possibility of cash receivables, and recognizes relevant operating lease income.

4) Financing components

The Group does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Group does not adjust any of the transaction prices for the time value of money.

(q) Income taxes

Income taxes comprise current taxes and deferred taxes. Except for expenses related to business combinations or recognized directly in equity or other comprehensive income, all current and deferred taxes are recognized in profit or loss.

Current taxes comprise the expected tax payables or receivables on the taxable profits (losses) for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payables or receivables are the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date.

Deferred taxes arise due to temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases. Deferred taxes are recognized except for the following:

(i) temporary differences on the initial recognition of assets and liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profits (losses) and does not give rise to equal taxable and deductible temporary difference at the time of the transaction;

(ii) temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that the Group is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and

(iii) taxable temporary differences arising on the initial recognition of goodwill.

Deferred tax assets are recognized for the carry forward of unused tax losses, unused tax credits, and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefits will be realized; such reductions are reversed when the probability of future taxable profits improves.

Deferred taxes are measured at tax rates that are expected to be applied to temporary differences when they reserve, using tax rates enacted or substantively enacted at the reporting date, and reflect uncertainty related to income taxes, if any.

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Deferred tax assets and liabilities are offset if the following criteria are met:

(i) the Group has a legally enforceable right to set off current tax assets against current tax liabilities; and

(ii) the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on either:

1) the same taxable entity; or

2) different taxable entities which intend to settle current tax assets and liabilities on a net basis, or to realize the assets and liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

(r) Employee benefits

(i) Defined contribution plans

Obligations for contributions to defined contribution plans are expensed as the related service is provided.

(ii) Defined benefit plans

The Group’s net obligation in respect of defined benefit plans is calculated separately for each the plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.

The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a potential asset for the Group, the recognized asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, consideration is given to any applicable minimum funding requirements.

Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognized immediately in other comprehensive income, and accumulated in retained earnings within equity. The Group determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (asset). Net interest expense and other expenses related to defined benefit plans are recognized in profit or loss.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognized immediately in profit or loss. The Group recognizes gains and losses on the settlement of a defined benefit plan when the settlement occurs.

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(iii) Other long-term employee benefits

The Group’s net obligation in respect of long-term employee benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods. That benefit is discounted to determine its present value. Remeasurements are recognized in profit or loss in the period in which they arise.

(iv) Termination benefits

Termination benefits are expensed at the earlier of when the Group can no longer withdraw the offer of those benefits and when the Group recognizes costs for a restructuring. If benefits are not expected to be settled wholly within 12 months of the reporting date, then they are discounted.

(v) Short-term employee benefits

Short-term employee benefits are expensed as the related service is provided. A liability is recognized for the amount expected to be paid if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

(s) Earnings per share

Disclosures are made of basic and diluted earnings per share attributable to ordinary equity holders of the Group. The basic earnings per share is calculated based on the profit attributable to the ordinary shareholders of the Group divided by weighted average number of ordinary shares outstanding. The diluted earnings per share is calculated based on the profit attributable to ordinary shareholders of the Group, divided by weighted average number of ordinary shares outstanding after adjustment for the effects of all potentially dilutive ordinary shares, such as remuneration of employees and employee stock options.

(t) Operating segments

An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the Group). Operating results of the operating segment are regularly reviewed by the Group’s chief operating decision maker to make decisions about resources to be allocated to the segment and to assess its performance. Each operating segment consists of standalone financial information.

(5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty:

The preparation of the consolidated financial statements in conformity with the IFRSs endorsed by the FSC requires management has made judgments and estimates about the future, that affect the application of the accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates.

The management continues to monitor the accounting estimates and assumptions. The management recognizes any changes in accounting estimates during the period and the impact of those changes in accounting estimates in the next period.

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next financial year is as follows. Those assumptions and estimation have been updated to reflect the impact of COVID-19 pandemic:

(a) Valuation of inventories

As inventories are stated at the lower of cost and net realizable value, the Group estimates the net realizable value of inventories to comply with the policy of Ministry of Agriculture, which is in order to stabilize the domestic fertilizer price and then writes down the cost of inventories to net realizable value. Please refer to note 6(f) for further description of the valuation of inventories.

The process of measurement

The Group’s accounting policies include measuring financial and non-financial assets and liabilities at fair value through profit or loss. The Group’s financial instrument valuation group conducts independent verification on fair value by using data sources that are independent, reliable, and representative of exercise prices. This financial instrument valuation group also periodically adjusts valuation models, conducts back testing, renews input data for valuation models, and makes all other necessary fair value adjustments to assure the rationality of fair value.

The Group strives to use the market observable inputs when measuring its assets and liabilities.

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

(a) Level 1: quoted prices (unadjusted) in active markets for identifiable assets or liabilities.
(b) Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
(c) Level 3: inputs for the assets or liability that are not based on observable market data.

Please refer to notes listed below for assumptions used in measuring fair value.

For any transfer within the fair value hierarchy, the impact of the transfer is recognized on the reporting date. Please refer to Note 6(u), Financial instruments for assumptions used in measuring fair value.

(6) Explanation of significant accounts:

(a) Cash and cash equivalents

	December 31, 2025	December 31, 2024
Cash on hand	$ 3,158	2,932
Demand deposits and checking accounts	1,946,667	2,485,316
Time deposits with original maturities less than 3 months	-	1,600,000
Cash and cash equivalents	$ 1,949,825	4,088,248

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(i) Time deposits with original maturity of more than 3 months are recorded as other financial assets, and are classified as non-current if their maturities exceed one year, and as follow:

	December 31, 2025	December 31, 2024
Other current financial assets	$ 595,256	615,752
Other non-current financial assets	31,868	324,968
	$ 627,124	940,720

(ii) Refer to Note 6(u) for the fair value sensitivity analysis and interest rate risk of the financial assets and liabilities of the Group. Refer to Note 8 for assets pledged as collateral.

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

	December 31, 2025	December 31, 2024
Financial assets mandatorily measured at fair value through profit or loss:
Non-derivative financial assets
Beneficiary Certificate	$ 1,015,699	415,239

Please refer to note 6(t) for the amount of remeasurement measured at fair value through profit or loss.

	December 31, 2025	December 31, 2024
Equity investments at fair value through other comprehensive income
Stock listed on domestic markets	$ 75,076	71,018
Stock unlisted on domestic markets	4,281,556	4,266,741
Total	$ 4,356,632	4,337,759

(i) Equity investments at fair value through other comprehensive income

The Group designated the investments shown above as equity securities as at fair value through other comprehensive income because these equity securities represent those investments that the Group intends to hold for long-term for strategic purposes.

As a result of the investment at fair value through other comprehensive income, the amounts of the dividend revenues recognized for the years ended December 31, 2025 and 2024 were $81,529 and $85,265 thousand, respectively.

TSC Bio-Venture Capital Corporation, a domestic non-listed entity recognized as financial assets measured at fair value through other comprehensive income by the Group, completed its dissolution process in May 2024, so the accumulated benefits recorded in the books were transferred from other equity to retained earnings in the amount of $10,062 thousand.

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

A resolution was approved during the provisional meeting of shareholders of Eminent II Venture Capital Corporation, one of the financial assets measured at fair value through other comprehensive income by the Group, held on June 5, 2025, for capital reduction, wherein the Group will receive the refund of $27,300 thousand.

(ii) For credit risk, please refer to note 6(u).

(iii) Financial assets at fair value through other comprehensive income of the Group had not been pledged as collateral for long-term borrowings.

(d) Notes receivable and accounts receivable

	December 31, 2025	December 31, 2024
Notes receivables	$ 12,417	84,310
Account receivables	1,025,522	838,880
Less: Loss allowance	(1,880)	(1,914)
	$ 1,036,059	921,276

The Group applies the simplified approach to provide for its expected credit losses, i.e. the use of lifetime expected loss provision for all receivable. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due, as well as incorporated forward looking information, including macroeconomic and relevant industry information. The loss allowance provision in Taiwan was determined as follows:

	December 31, 2025
	Gross carrying amount	Expected loss rate	Loss allowance provision
Current	$ 938,189	0%~0.01%	-
1 to 30 days past due	98,983	0%~1.12%	(1,113)
31 to 60 days past due	-	0%~1.47%	-
More than 61 days past due	767	0%~100%	(767)
	$ 1,037,939		(1,880)
	December 31, 2024
	Gross carrying amount	Expected loss rate	Loss allowance provision
Current	$ 911,666	0%~0.01%	-
1 to 30 days past due	7,675	0%~0.84%	-
31 to 60 days past due	2,977	0%~35.00%	(1,042)
More than 61 days past due	872	0%~100%	(872)
	$ 923,190		(1,914)

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

The movement in the allowance for account receivables was as follows:

	For the years ended December 31
	2025	2024
Balance on January 1	$ 1,914	1,864
Impairment losses recognized	455	-
The irrecoverable amount written of in the current year	(455)	-
Effect of foreign currency exchanges difference	(34)	50
Balance on December 31	$ 1,880	1,914

(e) Other receivables (including the long-term receivables)

	December 31, 2025	December 31, 2024
Other receivables	$ 51,928	25,858
Property receivables	26,016	30,381
Less: Unrealized interest income	(2,719)	(3,306)
	$ 75,225	52,933
	December 31, 2025	December 31, 2024
Other receivables	$ 54,402	29,636
Long-term receivable	20,823	23,297
	$ 75,225	52,933

As of December 31, 2025, the total amount of receivables due to the sale of premises of the Group was $23,297 thousand. The Group estimates to collect $2,474 and $20,823 thousand over the year 2026, 2027 and thereafter, respectively.

The above receivables of $23,297 thousand are all secured by the premises and promissory notes sold, and a mortgage is established to the Group.

The Group complies with the policy of Ministry of Agriculture of Executive Yuan, which is in order to stabilize the domestic fertilizer price and supplement stocks of fertilizer raw material, so as to fully meet the fertilizer demands of farmers. As of December 31, 2025 and 2024 and, the total amount of subsidy receivables due to no increase in the fertilizer price was $835 and $0 thousand, respectively, which was recognized in the account of other receivables.

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

The movement in the allowance for other receivables was as follows.

	For the years ended December 31
	2025	2024
Balance on January 1	$ -	317,277
Amounts written off	-	(317,277)
Balance on December 31	$ -	-

During 2014 and 2015, the Group repaid a bank loan of USD 10,000 thousand (NTD 317,277 thousand) on behalf of TR Electronic Chemical Co., Ltd. (TR Holding Company), a joint venture company, after the Board of Directors' resolution due to the restriction of the regulations and based on the Group's operating conditions and ability to repay the loan, recognizing the impairment loss in prior years. In July 2017, a civil lawsuit was filed against TR Holding Company and its seven shareholders, demanding joint and several liability. After three instances of litigation, the final judgment was rendered in June 2024. Following the judgment, the Group has engaged an attorney to execute legal recourse procedures, and evaluated that the amount is no longer beneficial to be recovered, therefore, other receivables and their impairment allowances were eliminated from the original carrying amount.

For other credit risk information, please refers to note 6(u).

(f) Inventories and construction in progress

	December 31, 2025	December 31, 2024
Inventories
Raw materials	$ 2,173,523	1,864,974
Finished goods	588,879	578,633
Merchandise	212	210
Subtotal	2,762,614	2,443,817
	December 31, 2025	December 31, 2024
Construction in progress
Hsinchu land development project	387,765	387,765
Total	$ 3,150,379	2,831,582

The cost of inventories recognized as cost of goods sold and expense for the years ended December 31, 2025 and 2024, amounted to $9,117,057 and $8,623,520 thousand, respectively.

For the year ended December 31, 2025 and 2024, the Group recognized $101 and $1,225 thousand as cost of goods sold due to valuation loss of inventories to net realizable value.

As of December 31, 2025 and 2024, the aforesaid inventories were not pledged as collateral.

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(g) Investments accounted for using equity method

The Group’s financial information for equity accounted investees at the reporting date was as follows:

	December 31, 2025	December 31, 2024
Material associates
Al-Jubail Fertilizer Company (“Al-Jubail”)	$ 9,444,994	9,295,657
Associates that are not individually material
MITAGRI Co., Ltd.	45,945	59,598
	$ 9,490,939	9,355,255

Joint ventures that are not individually material

	December 31, 2025	December 31, 2024
TR Electronic Chemical Co., Ltd.	$ -	-

(i) Associates that had materiality were as follows:

Associate	Nature of relationship	Country of registration	Equity ownership
			December 31, 2025	December 31, 2024
Al-Jubail Fertilizer Company	Equity-method investee	Kingdom of Saudi Arabia	50.00 %	50.00 %

The following is a summary of financial information on the Group’s significant associates. In order to reflect the adjustments for fair value in acquisition of shares and differences in accounting policies, adjustment for the amounts presented on the financial statements of associates in accordance with IFRSs has been made to such financial information.

Summary financial information on Al-Jubail Fertilizer Company:

	December 31, 2025	December 31, 2024
Current assets	$ 7,356,902	6,229,146
Noncurrent assets	15,351,680	15,863,037
Current liabilities	(2,634,026)	(2,694,740)
Noncurrent liabilities	(966,481)	(864,516)
Net assets	$ 19,108,075	18,532,927
Net assets attributable to the Company	$ 9,309,651	9,043,368
Net assets attributable to the other company	9,798,424	9,489,559
	$ 19,108,075	18,532,927

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

	For the years ended December 31
	2025	2024
Revenue	$ 13,164,813	12,657,216
Profit for the year	$ 2,665,619	2,154,446
Other comprehensive income	613	(3,392)
Comprehensive income	$ 2,666,232	2,151,054
Comprehensive income attributable to the Company	$ 1,209,139	984,012
Comprehensive income attributable to the other company	$ 1,457,102	1,167,042
Dividends declared by associates	$ 771,733	1,674,480

(ii) Joint ventures

On March 31, 2011, under the authorization of the Investment Commission of the Ministry of Economic Affairs of the Republic of China, the Group established TR Electronic Chemical Co., Ltd. ("TREC") in the Cayman Islands through its subsidiary, Taifer (Cayman) International Group Co., Ltd. TREC then invested in TR Electronic Chemical (Kunshan) Co., Ltd. ("TREC-K"), which enabled the Group to have a 100% indirect interest in TREC-K. TREC-K manufactures and sells electronic chemicals. Later, under a joint venture agreement between the Group and Shiung-Shing Chemical International Trade Group. ("Shiung-Shing"), another TREC shareholder, Shiung-Shing assigned a manager to handle TREC's daily business and management. Thus, the Group had no control over TREC and TREC-K. In June 2015, the carrying amount of the Group's investment in TREC was zero. TREC-K declared bankruptcy, for the relevant explanation of bankruptcy and litigation, please refer to note 7.

(iii) Pledged

As of December 31, 2025 and 2024, the investments in the aforesaid equity-accounted investees were not pledged as collateral.

(h) Property, plant and equipment

The movements in the cost, depreciation, and impairment of the property, plant and equipment of the Group for the years ended December 31, 2025 and 2024 were as follows:

	Land	Building and construction	Machinery and equipment	Transportation equipment	Other equipment	Construction in progress	Total
Cost or deemed cost:
Balance on January 1, 2025	$ 3,638,243	5,111,570	12,101,197	76,467	461,794	1,101,540	22,490,811
Additions	-	25,049	203,542	4,506	62,829	179,372	475,298
Disposals	-	(4,513)	(51,275)	(202)	(3,435)	-	(59,425)
Reclassify to expenses	-	-	-	-	-	(335)	(335)
Transfer from completion	-	36,951	160,939	3,400	30,754	(243,600)	(11,556)
Balance on December 31, 2025	$ 3,638,243	5,169,057	12,414,403	84,171	551,942	1,036,977	22,894,793

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

	Land	Building and construction	Machinery and equipment	Transportation equipment	Other equipment	Construction in progress	Total
Balance on January 1, 2024	$ 3,638,243	4,693,972	11,798,922	76,599	430,855	963,575	21,602,166
Additions	-	13,643	185,659	275	22,504	316,245	538,326
Disposals	-	-	(178,684)	(407)	(11,883)	-	(190,974)
Transfer from completion	-	403,955	295,300	-	20,318	(178,280)	541,293
Balance on December 31, 2024	$ 3,638,243	5,111,570	12,101,197	76,467	461,794	1,101,540	22,490,811
Depreciation and impairment loss:
Balance on January 1, 2025	$ -	1,318,419	7,238,191	65,766	291,831	712,679	9,626,886
Depreciation for the year	-	144,574	696,740	4,516	33,473	-	879,303
Disposals	-	(4,143)	(50,961)	(202)	(3,194)	-	(58,500)
Transfer from completion	-	-	202	-	(202)	-	-
Balance on December 31, 2025	$ -	1,458,850	7,884,172	70,080	321,908	712,679	10,447,689
Balance on January 1, 2024	$ -	1,207,862	6,702,966	61,110	256,035	712,679	8,940,652
Depreciation for the year	-	40,399	705,502	5,063	31,332	-	782,296
Disposals	-	-	(178,645)	(407)	(11,784)	-	(190,836)
Transfer from completion	-	70,158	8,368	-	16,248	-	94,774
Balance on December 31, 2024	$ -	1,318,419	7,238,191	65,766	291,831	712,679	9,626,886
Carrying amounts:
Balance on December 31, 2025	$ 3,638,243	3,710,207	4,530,231	14,091	230,034	324,298	12,447,104
Balance on January 1, 2024	$ 3,638,243	3,486,110	5,095,956	15,489	174,820	250,896	12,661,514
Balance on December 31, 2024	$ 3,638,243	3,793,151	4,863,006	10,701	169,963	388,861	12,863,925

As of December 31, 2025 and 2024, the property, plant and equipment were not pledged as collateral.

(i) Right-of-use assets

The Group leases land. Information about leases for which the Group as a lessee is presented below:

	Land	Transportation equipment	Total
Cost:
Balance on January 1, 2025	$ 1,395,439	9,069	1,404,508
Additions	-	2,943	2,943
Disposals	-	(9,069)	(9,069)
Balance on December 31, 2025	$ 1,395,439	2,943	1,398,382
Balance on January 1, 2024	$ 1,395,439	-	1,395,439
Additions	-	9,069	9,069
Balance on December 31, 2024	$ 1,395,439	9,069	1,404,508
Accumulated depreciation and impairment losses:
Balance on January 1, 2025	$ 652,369	1,853	654,222
Depreciation for the year	111,120	3,483	114,603
Disposals	-	(4,747)	(4,747)
Balance on December 31, 2025	$ 763,489	589	764,078

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

	Land	Transportation equipment	Total
Balance on January 1, 2024	$ 541,248	-	541,248
Depreciation for the year	111,121	1,853	112,974
Balance on December 31, 2024	$ 652,369	1,853	654,222
Carrying amount:
Balance on December 31, 2025	$ 631,950	2,354	634,304
Balance on January 1, 2024	$ 854,191	-	854,191
Balance on December 31, 2024	$ 743,070	7,216	750,286

On October 31, 2006, the Group leased from the Taichung Harbor Bureau, Ministry of Transportation and Communications (“THB”) a 247.298 square meter lot in a special petrochemical industry zone in Taichung to develop wharf areas called West 8 and 9, and construct warehouse facilities and public roads. The main provisions of the lease agreement were as follows:

(i) The lease term for the land in a special industrial zone is 20 years, and the agreement is renewable until the total lease reaches 50 years.

(ii) The Group can sublease the land, and it can also develop West 8 and 9 of the wharf area, as well as construct warehouse facilities and public roads on behalf of THB. The Group can use its capital expenses for the construction as rentals in advance. However, once the lease term ends or the agreement is early terminated, all the titles to the facilities and improvements on the leased land should be transferred to THB.

The Group used its expenditures of $1,500,481 thousand for the construction of West 8 and 9 of Taichung Harbor as rentals until March 20, 2034. The long-term prepayments for lease should be amortized over its rent free periods.

(j) Investment property

Investment property comprises office buildings that are leased to third parties under operating leases, including properties that are held as right-of-use assets, as well as properties that are owned by the Group. The leases of investment properties contain an initial non-cancellable lease term of 1 to 50 years.

The Group for the movement in investment property was as follows:

	Own assets			Right-of-use assets
	Completed investment property	Investment property under construction	Undeveloped investment property	Other	Total
Costs:
Balance on January 1, 2025	$ 21,848,215	7,168,395	16,916,413	3,778	45,936,801
Additions	106	2,153,508	-	-	2,153,614
Reclassify to expenses	-	(2,381)	-	-	(2,381)
Effect of foreign currency exchanges difference	(1,208)	-	-	-	(1,208)
Reclassification	2,119,174	(2,123,716)	16,187	-	11,645
Balance on December 31, 2025	$ 23,966,287	7,195,806	16,932,600	3,778	48,098,471

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

	Own assets			Right-of-use assets
	Completed investment property	Investment property under construction	Undeveloped investment property	Other	Total
Balance on January 1, 2024	$ 22,134,802	6,965,686	16,916,413	3,778	46,020,679
Additions	9,102	457,832	-	-	466,934
Effect of foreign currency exchanges difference	908	-	-	-	908
Reclassification	(296,597)	(255,123)	-	-	(551,720)
Balance on December 31, 2024	$ 21,848,215	7,168,395	16,916,413	3,778	45,936,801
Accumulated depreciation:
Balance on January 1, 2025	$ 1,310,871	34,037	619,088	3,778	1,967,774
Depreciation for the year	441,018	2,001	-	-	443,019
Effect of foreign currency exchanges difference	(692)	-	-	-	(692)
Balance on December 31, 2025	$ 1,751,197	36,038	619,088	3,778	2,410,101
Balance on January 1, 2024	$ 787,763	146,161	619,088	3,778	1,556,790
Depreciation for the year	512,541	2,269	-	-	514,810
Effect of foreign currency exchanges difference	499	-	-	-	499
Reclassification	10,068	(114,393)	-	-	(104,325)
Balance on December 31, 2024	$ 1,310,871	34,037	619,088	3,778	1,967,774
Carrying amount:
Balance on January 1, 2025	$ 20,537,344	7,134,358	16,297,325	-	43,969,027
Balance on December 31, 2025	$ 22,215,090	7,159,768	16,313,512	-	45,688,370
Balance on January 1, 2024	$ 21,347,039	6,819,525	16,297,325	-	44,463,889
Balance on December 31, 2024	$ 20,537,344	7,134,358	16,297,325	-	43,969,027

Completed investment property are located in C3/C6/C7/C8/C9 in the Nangang Economic and Trade Park, and D6 in the Hsinchu Science Park, and the Corporation leased land use right to others.

(i) The main provisions of the C6/C7/C8/C9 contract on the pledging of land use rights were as follows:

1) Land use rights (LURs) are for 50 years from the date of registration of these rights.

2) The LURs (accounted for as deferred revenue-current and noncurrent) amounted to $3,200,889 thousand, which has been treated as royalty revenue (accounted for as operating revenue) amortizable over 50 years from June 13, 2006. As of December 31, 2025 and 2024, the unamortized balances of the LURs under above mentioned contract were $1,949,875 and $2,013,893 thousand, respectively.

3) In addition to the LURs, the annual rental payable by the lessee is 8% of the reference land price announced by the local government, with the calculation starting from the contract date. When the reference land price is adjusted, the annual rental will be revised at the percentage the same as that set on the date of the reference price adjustment. The annual rentals in 2025 and 2024 were $367,270 thousand and $367,270 thousand, respectively.

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(ii) The main provisions for the C3 contract on the pledging of land use rights, together with the supplemental agreement entered into with the lessee on December 4, 2025, as well as the original contract dated September 15, 2015, were as follows:

1) The LURs are extended from 45 years to 85 years and are valid from the date of the registration of these rights.

2) The LURs (accounted for as deferred revenue-current and noncurrent) amounted to $28,574,419 thousand, recorded as royalty revenue (under operating revenue) amortizable over 85 years from December 10, 2015. Of the said amount, $15,000,000 thousand (including tax) was attributable to the extension of the LURs and is collected over a period for 15 years. As of December 31, 2025 and 2024, the unamortized balance of the LURs were $12,048,178 and $11,413,323 thousand, respectively.

3) In addition to the LURs, the annual rental payable by the lessees is 0.8% of the reference land price announced by the local government, with the calculation starting from the registration date. When the reference land price is adjusted, the annual rental will be revised at the same percentage as the rate of the reference price adjustment. The lessees' annual rental in 2025 and 2024 were $253,016 thousand and $321,026 thousand, respectively.

4) Under the contract, the lessees provided government bonds as collateral, wherein the fair values of these bonds were as follow:

	December 31, 2025	December 31, 2024	January 1, 2024
Debt securities	$ 8,685,163	2,485,313	2,610,042

(iii) The main provisions of the D6 contract on the pledging of land use rights were as follows:

1) The LURs are valid for 70 years from the date of the registration of these rights.

2) The LURs (accounted for as deferred revenue-current and noncurrent) amounted to $2,705,714 thousand, which has been treated as royalty revenue (accounted for as operating revenue) amortizable over 70 years from February 10, 2022. As of December 31, 2025 and 2024, the unamortized balance of the LURs were $2,554,323 and $2,592,976 thousand, respectively.

3) In addition to the LURs, the rental payable by the lessees is 0.8% of the reference land price announced by the local government, with the calculation starting from the registration date. When the reference land price is adjusted, the annual rental will be revised at the same percentage as the rate of the reference price adjustment. The annual rentals in 2025 and 2024 were $14,162 and $14,162 thousand, respectively.

4) The lessees shall deliver a written notice to the Group no less than three years prior to the expiration of the existing lease term to exercise the extension option.

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(iv) For details regarding litigation related to investment property, please refer to note 9.

(v) The fair value of investment properties (as measured or disclosed in the consolidated financial statements) was based on a valuation by a qualified independent appraiser who has recent valuation experience in the location and category of the investment property being valued. The inputs of levels of fair value hierarchy in determining the fair value was classified to Level 3.

The fair values of investment properties were assessed as follows:

Fair value	December 31, 2025	December 31, 2024
C6/C7/C8/C9	$ 27,946,225	27,296,312
C2	$ 24,255,956	23,409,818
C3	$ 41,966,566	41,463,972
Hsinchu	$ 14,099,316	12,631,187
Kaohsiung	$ 23,199,032	23,137,902

The fair value were based on the valuation carried out at March 25, 2025 and March 6, 2024 by independent qualified professional valuer.

The fair value is measured at market value, mainly use the comparison approach and land development analysis approach to determine the value of the investment property. The weight is 50/50. The significant key assumption of the development profit margin intervals was as follows:

Area	For the years ended December 31
	2025	2024
C6/C7/C8/C9	17%	18%
C2	18%	18%
C3	18%	18%
Hsinchu	19%	19%
Kaohsiung	17%	17%

The other investment properties held by the Corporation are mainly located in different industrial zones. They have no quoted prices in an active market and there was no alternative basis for estimating their fair values. Thus, the fair values of the investment properties were not reliably determinable.

As of December 31, 2025 and 2024, investment properties were pledged as collateral, please refer to Note 8 for related information.

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(k) Intangible assets

The components of the costs of intangible assets, amortization, and impairment loss thereon for the years ended December 31, 2025 and 2024, were as follows:

	Patents	Computer Software	Trademark	Goodwill	Total
Cost:
Balance on January 1, 2025	$ 29,910	159,307	84,900	358,487	632,604
Additions	-	6,512	-	-	6,512
Balance on December 31, 2025	$ 29,910	165,819	84,900	358,487	639,116
Balance on January 1, 2024	$ 29,910	159,307	84,900	358,487	632,604
(Balance on December 31, 2024)
Amortization and impairment loss:
Balance on January 1, 2025	$ 29,751	154,864	49,000	358,487	592,102
Amortization for the year	112	3,150	-	-	3,262
Impairment loss	-	-	35,900	-	35,900
Balance at December 31, 2025	$ 29,863	158,014	84,900	358,487	631,264
Balance on January 1, 2024	$ 29,638	152,077	49,000	283,472	514,187
Amortization for the year	113	2,787	-	-	2,900
Impairment loss	-	-	-	75,015	75,015
Balance at December 31, 2024	$ 29,751	154,864	49,000	358,487	592,102
Fair value:
Balance on December 31, 2025	$ 47	7,805	-	-	7,852
Balance on January 1, 2024	$ 272	7,230	35,900	75,015	118,417
Balance on December 31, 2024	$ 159	4,443	35,900	-	40,502

The Group acquired trademark and goodwill through the acquisition of an additional 50% equity in Taiwan Yes Deep Ocean Water Co., Ltd. ("Taiwan Yes") on January 7, 2013. For the years ended December 31, 2025 and 2024, the Group evaluated the recoverable amount of trademark and goodwill. The amount of impairment loss were $35,900 thousand and $75,015, respectively. The recoverable amount of Taiwan Yes were determined based on the value in use calculation with a discount rate of 8.3%.

(l) Long-term borrowings

	December 31, 2025
	Currency	Maturity year	Amount
Secured bank loans	TWD	2030	$ 500,000
Unutilized bank loan facility			$ 2,500,000

For the collateral for long-term borrowings, please refer to note 8.

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(m) Operating leases

The Group leases out its investment property and some machinery. The Group has classified these leases as operating leases, because it does not transfer substantially all of the risks and rewards incidental to the ownership of the assets. Please refer to note 6(j) sets out information about the operating leases of investment property.

A maturity analysis of lease payments, showing the undiscounted lease payments to be received after the reporting date are as follows:

	December 31, 2025	December 31, 2024
Less than one year	$ 1,905,506	1,815,881
One to two years	1,928,904	1,792,150
Two to three years	1,692,268	1,705,748
Three to four years	1,493,592	1,502,934
Four to five years	1,484,193	1,314,092
More than five years	20,611,122	17,394,456
Total undiscounted lease payments	$ 29,115,585	25,525,261

For the years ended December 31, 2025 and 2024, the property rental income was $2,010,924 and $1,946,837 thousand, respectively. There were no significant property equipment and maintenance expenses.

(n) Employee benefits

(i) Defined benefit plans

Reconciliation of defined benefit obligation at present value and plan asset at and fair value are as follows:

	December 31, 2025	December 31, 2024
Present value of defined benefit obligation	$ 316,780	306,427
Fair value of plan assets	(275,923)	(219,053)
	40,857	87,374
The effect of the asset ceiling	-	-
Net defined benefit liabilities	$ 40,857	87,374

The Group makes defined benefit plan contributions to the pension fund account with Bank of Taiwan that provides pension benefits for employees upon retirement. Plans (covered by the Labor Standards Law) entitle a retired employee to receive retirement benefits based on years of service and average monthly salary for the one months prior to retirement.

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

1) Composition of plan assets

The Group set aside pension funds in accordance with the Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund and such funds are managed by the Bureau of Labor Funds, Ministry of Labor. Under these regulations, the minimum earnings from these pension funds shall not be less than the earnings from two-year time deposits with the interest rates offered by local banks.

The Group’s Bank of Taiwan labor pension reserve account balance amounted to $275,923 thousand as of December 31, 2025. For information on the utilization of the labor pension fund assets including the asset allocation and yield of the fund, please refer to the website of the Bureau of Labor Funds, Ministry of Labor.

2) Movements in present value of the defined benefit obligations

The movements in the present value of the defined benefit obligations for the years ended December 31, 2025 and 2024 were as follows:

	For the years ended December 31
	2025	2024
Defined benefit obligation, January 1	$ 306,427	357,113
Current service costs and interest	12,561	13,073
Re-measurement of the net defined benefit liability
—Actuarial (gains) losses arose from changes in financial assumption	4,587	(8,758)
—Experience adjustment	17,694	18,443
Benefits paid	(24,489)	(73,444)
Defined benefit obligation, December 31	$ 316,780	306,427

3) Movements in the fair value of plan assets

The movements in the fair value of the defined benefit plan assets for the years ended December 31, 2025 and 2024 were as follows:

	For the years ended December 31
	2025	2024
Fair value of plan assets, January 1	$ 219,053	249,500
Interests revenue	3,727	2,557
Re-measurement of the net defined benefit liability
—Return on plan assets excluding interest income	17,538	24,665
Contributions paid by the employer	56,943	8,469
Benefits paid	(21,338)	(66,138)
Fair value of plan assets, December 31	$ 275,923	219,053

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

4) Movements in the fair value of plan assets : None.

5) Expenses recognized in profit or loss

The Group’s pension expenses recognized in profit or loss for the years ended December 31, 2025 and 2024 were as follows:

	For the years ended December 31
	2025	2024
Current service cost	$ 7,893	9,328
Net interest of net liabilities for defined benefit obligations	942	1,188
	$ 8,835	10,516
Operating costs	$ 5,977	7,213
Operating expenses	2,858	3,303
	$ 8,835	10,516

6) Re-measurement of net defined benefit liability recognized in other comprehensive income

The Group’s net defined benefit liability recognized in other comprehensive income for the years ended December 31, 2025 and 2024 were as follows:

	For the years ended December 31
	2025	2024
Cumulative amount, January 1	$ 111,039	123,023
Recognized during the year	3,793	(11,984)
Cumulative amount, December 31	$ 114,832	111,039

7) Actuarial assumptions

The principal actuarial assumptions at the reporting date were as follows:

	2025.12.31	2024.12.31
Discount rate	1.35 %	1.60 %
Future salary increases	1.50 %	1.50 %

The expected allocation payment to be made by the Group to the defined benefit plans for the one-year period after the reporting date is $14,936 thousand.

The weighted-average duration of the defined benefit plan is 6 year.

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

8) Sensitivity Analysis

As of December 31, 2025 and 2024, the changes in the principal actuarial assumptions will impact on the present value of defined benefit obligation as follows:

	Impact on the present value of defined benefit obligation
	Increase by 0.25%	Decrease by 0.25%
December 31, 2025
Discount rate	(4,587)	4,712
Future salary increase rate	4,694	(4,591)
December 31, 2024
Discount rate	(4,681)	4,812
Future salary increase rate	4,804	(4,697)

The sensitivity analysis assumed all other variables remain constant during the measurement. This may not be representative of the actual change in defined benefit obligation as some of the variables may be correlated in the actual situation. The model used in the sensitivity analysis is the same as the defined benefit obligation liability.

The analysis is performed on the same basis for prior year.

(ii) Defined contribution plans

The Group contributes an amount at the rate of 6.00% of the employee’s monthly wages to the Labor Pension personal account with the Bureau of the Labor Insurance and Council of Labor Affairs in R.O.C. in accordance with the provisions of the Labor Pension Act. The Group’s contributions to the Bureau of the Labor Insurance and Social Security Bureau for the employees’ pension benefits require no further payment of additional legal or constructive obligations.

As of December 31, 2025 and 2024, the expense of defined contribution plans under Labor Pension Act was as follows:

	For the years ended December 31
	2025	2024
Operating costs	$ 16,565	15,103
Operating expenses	13,116	12,124
	$ 29,681	27,227

The cost of the pension contributions to the Labor Insurance Bureau for the years ended December 31, 2025 and 2024 amounted to $29,313 and $26,737 thousand, respectively.

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(iii) Short-term employee benefits

	December 31, 2025	December 31, 2024
Short term employee benefit liabilities	$ 12,875	9,535

(o) Income tax

(i) The components of income tax in the years 2025 and 2024 were as follows:

	For the years ended December 31
	2025	2024
Current income tax expense (benefit)
Current period incurred	$ 198,026	241,184
Tax on undistributed earnings	-	41,277
Adjustment for prior year	(9)	(659,492)
	198,017	(377,031)
Deferred tax expense	30,291	49,206
Income tax expense (benefit)	$ 228,308	(327,825)

The amount of income tax recognized in other comprehensive income for 2025 and 2024 was as follows:

	For the years ended December 31
	2025	2024
Items that will not be reclassified to profit or loss:
Remeasurements effects of defined benefit plans	$ (948)	2,996
Items that may be reclassified subsequently to profit and loss:
Foreign currency translation differences for foreign operations	$ (80,476)	122,301

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Reconciliation of income tax and profit before tax for 2025 and 2024 is as follows:

	For the years ended December 31
	2025	2024
Profit excluding income tax	$ 1,160,547	1,637,824
Income tax using the Compnay's domestic tax rate	232,109	327,565
Effect of tax rates in foreign jurisdiction	(1,923)	(1,284)
Non-deductible income tax	8,826	3,529
Tax-exempt income	(24,267)	(108,655)
Changes in unrecognized deductible temporary differences	657	(441)
Tax on undistributed earnings	-	41,277
Adjustment for prior year	(9)	(659,492)
Others	12,915	69,676
Income tax expense(benefit)	$ 228,308	(327,825)

(ii) Deferred tax assets and liabilities

1) Unrecognized deferred tax assets

Deferred tax assets have not been recognized in respect of the following items:

	December 31, 2025	December 31, 2024
Tax effect of deductible temporary differences	$ 1,129	472
The carryforward of unused tax losses	39,352	39,169
	$ 40,481	39,641

The R.O.C Income Tax Act allows net losses, as assessed by the tax authorities, to offset taxable income over a period of ten years for local tax reporting purposes. Deferred tax assets have not been recognized in respect of these items because it is not probable that future taxable profit will be available against which the Group can utilize the benefits therefrom.

As of December 31, 2025, the information of the Group's unused tax losses for which no deferred tax assets were recognized are as follows:

Year of assessment	Unused balance	Expiry year
2020	$ 186,452	2030
2022	371	2032
2024	8,869	2034
2025	1,069	2035
	$ 196,761

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

2) Recognized deferred tax assets and liabilities

The movements in deferred tax assets and liabilities for the years ended December 31, 2025 and 2024 were as follows:

Deferred tax liabilities:

	Land value increment tax	Investment income recognized under the equity method	Exchange difference on the translation of foreign operations	Others	Total
Balance on January 1, 2025	$ 6,216,291	318,922	274,710	86,507	6,896,430
Recognized in profit or loss	-	127,648	-	10,371	138,019
Recognized in other comprehensive income	-	-	(80,435)	-	(80,435)
Balance on December 31, 2025	$ 6,216,291	446,570	194,275	96,878	6,954,014
Balance on January 1, 2024	$ 6,216,291	359,609	152,469	66,103	6,794,472
Recognized in profit or loss	-	(40,687)	-	20,404	(20,283)
Recognized in other comprehensive income	-	-	122,241	-	122,241
Balance on December 31, 2024	$ 6,216,291	318,922	274,710	86,507	6,896,430

Deferred tax assets:

	Unamortized manufacturing costs	Tax losses	Defined benefit obligation	Impairment loss on assets	Exchange difference on the translation of foreign operations	Others	Total
Balance on January 1, 2025	$ 73,741	30,536	26,888	67,028	66	77,158	275,417
Recognized in profit or loss	9,558	(3,849)	-	-	-	102,019	107,728
Recognized in other comprehensive income	-	-	948	-	41	-	989
Balance on December 31, 2025	$ 83,299	26,687	27,836	67,028	107	179,177	384,134
Balance on January 1, 2024	$ 77,722	34,718	29,884	130,483	126	75,029	347,962
Recognized in profit or loss	(3,981)	(4,182)	-	(63,455)	-	2,129	(69,489)
Recognized in other comprehensive income	-	-	(2,996)	-	(60)	-	(3,056)
Balance on December 31, 2024	$ 73,741	30,536	26,888	67,028	66	77,158	275,417

(iii) The Group’s income tax returns through 2022 have been assessed and approved by the Tax Authority.

(iv) The Group classified the fertilizer subsidy as a taxable income due to the interpretation from the National Taxation Bureau, Ministry of Finance regarding the income tax treatment of fertilizer subsidies has not yet been obtained. In 2024, the Group received the 2022 approval notice stating that the fertilizer distributor cooperated with the Agriculture and Food Agency, Ministry of Agriculture, Executive Yuan, to implement the "Chemical Fertilizer Subsidy Program", since the actual beneficiaries of the subsidy were farmers, and it was not the distributors' income, therefore, it should be exempted from income tax, resulting in an overestimation of the prior year's income tax of $659,497 thousand.

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(p) Share capital and other interests

(i) Share capital

As of December 31, 2025 and 2024, the authorized capital of the Company amounting to $9,800,000 thousand with par value of $10 per share. The paid in capital was $9,800,000 thousand, and the capital that rose from the shares had all been retrieved.

(ii) Capital surplus

The components of capital surplus were as follows:

	December 31, 2025	December 31, 2024
Donations	$ 44,803	44,803
Treasury share transactions	2,187,988	2,187,988
Others	13,374	12,317
	$ 2,246,165	2,245,108

In accordance with Amended Companies Act 2012, realized capital reserves can only be capitalized or distributed as cash dividends after offsetting against losses. The aforementioned capital reserves include share premiums and donation gains. In accordance with Securities Offering and Issuance Guidelines, the amount of capital reserves that can be capitalized shall not exceed 10% of the actual share capital amount.

(iii) Retained earnings

Under the dividend policy as set forth in the Articles, where the Corporation made 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 Corporation's Board of Directors as the basis for proposing a distribution plan, which should be resolved in the shareholders' meeting for distribution of dividends and bonus to shareholders.

To determine dividend amounts, the Corporation should take into account the diversity of its business, cycles of the industry, and capital demand in relation to specific products and services. To balance business development and shareholders' welfare, the cash dividend should not be less than 10% of total annual dividends, unless there is any capital demand due to essential investment plan, change in financial position, business operation, extension of capacity or any other capital expenditure and should be approved in the shareholders' meetings.

1) Legal reserve

If the Company earned a profit for the year, the meeting of shareholders decides on the distribution of the statutory earnings reserve either by issuing new shares or by paying cash, and the distribution is limited to the portion of legal reserve which exceeds 25% of the actual share capital.

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

2) Special reserve

The Company implemented the optional exemptions under IFRS 1 "First-time Adoption of International Financial Reporting Standards" when adopting the International Financial Reporting Standards at first time. The increase in retained earnings resulting from the unrealized revaluation increments, cumulative translation adjustment and the revaluation increments in the transfer from fix assets to investment property was $32,114,341 thousand. In accordance with the regulation issued by the FSC, the same amount of the increasing earnings shall be reclassified to special earnings reserve. If a certain proportion of the asset has been disposed or reclassified, the same proportion of special earnings reserve equivalent to that of the asset, which has been disposed or reclassified, has to be transferred back to its earnings. Such special earnings reserve has to have the same amount with the one that was initially being reclassified to its special earnings reserve. The balance of such special earnings reserve amounted to $30,127,912 thousand as of December 31, 2025 and 2024.

In accordance with the aforesaid Ruling, a special reserve is set aside from the current year's net income after tax and prior year's undistributed earnings at an amount equal to the debit balance of contra accounts in shareholders' equity. When the debit balance of any of these contra accounts in shareholders' equity is reversed, the related special reserve can be reversed. The subsequent reversals of the contra accounts in shareholders' equity shall quality for additional distributions.

3) Earnings distribution

The appropriations of earnings for 2024 and 2023 had been approved in the shareholders' meeting on June 10, 2025 and June 26, 2024, respectively. These earnings were appropriated as follows:

	For the year ended December 31
	2024		2023
	Amount per share (dollars)	Amount	Amount per share (dollars)	Amount
Dividends distributed to ordinary shareholders:
Cash	$ 2.00	1,960,000	2.60	2,548,000

On March 4, 2026, the Company's Board of Directors resolved to appropriate the 2025 earnings. These earnings were appropriated as follows:

	For the year ended December 31
	2025
	Amount per share (dollars)	Amount
Dividends distributed to ordinary shareholders:
Cash	$ 2.00	1,960,000

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(iv) Other equity accounts (net of tax)

	Exchange differences on translation of foreign financial statements	Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income	Total
Balance on January 1, 2025	$ 749,455	3,700,330	4,449,785
Exchange differences on translation of foreign financial statements	(6,389)	-	(6,389)
Exchange differences on subsidiaries accounted for using equity method	(321,737)	-	(321,737)
Unrealized gains from financial assets measured at fair value through other comprehensive income	-	(49,327)	(49,327)
Disposal of equity instruments measured at fair value through other comprehensive income	-	(6,864)	(6,864)
Balance on December 31, 2025	$ 421,329	3,644,139	4,065,468
Balance on January 1, 2024	$ 255,805	2,682,634	2,938,439
Exchange differences on translation of foreign financial statements	4,687	-	4,687
Exchange differences on subsidiaries accounted for using equity method	488,963	-	488,963
Unrealized gains from financial assets measured at fair value through other comprehensive income	-	1,027,758	1,027,758
Disposal of equity instruments measured at fair value through other comprehensive income	-	(10,062)	(10,062)
Balance on December 31, 2024	$ 749,455	3,700,330	4,449,785

(q) Earnings per share

The basic earnings per share and diluted earnings per share were calculated as follows:

	For the years ended December 31
	2025	2024
Basic earnings per share
Profit attributable to ordinary shareholders	$ 932,239	1,965,649
Weighted average number of ordinary shares	980,000	980,000
	$ 0.95	2.01

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

	For the years ended December 31
	2025	2024
Diluted earnings per share
Profit attributable to ordinary shareholders (diluted)	$ 932,239	1,965,649
Weighted average number of ordinary shares	980,000	980,000
Effect of potentially dilutive ordinary shares
Employees’ compensation	717	1,070
Weighted average number of ordinary shares (diluted)	980,717	981,070
	$ 0.95	2.00

(r) Revenue from contracts with customers

(i) Details of revenue

	For the year ended December 31
	2025	2024
Revenue from contracts with customers	$ 9,306,754	9,062,879
Revenue from investment properties	2,509,555	2,445,448
Other operating revenue	271,400	364,931
	$ 12,087,709	11,873,258

(ii) Disaggregation of revenue

	For the year ended December 31, 2025
	Fertilizers and other chemical products	Real estate property and investment	Others	Total
Primary geographical markets
Taiwan	$ 9,072,711	2,500,723	244,422	11,817,856
Others	261,021	8,832	-	269,853
	$ 9,333,732	2,509,555	244,422	12,087,709
Major products/services lines
Fertilizers and other chemical products	$ 9,333,732	-	-	9,333,732
Lease	-	2,509,555	-	2,509,555
Others	-	-	244,422	244,422
	$ 9,333,732	2,509,555	244,422	12,087,709

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

	For the year ended December 31, 2024
	Fertilizers and other chemical products	Real estate property and investment	Others	Total
Primary geographical markets
Taiwan	$ 8,674,664	2,437,634	410,722	11,523,020
Others	342,424	7,814	-	350,238
	$ 9,017,088	2,445,448	410,722	11,873,258
Major products/services lines
Fertilizers and other chemical products	$ 9,017,088	-	-	9,017,088
Lease	-	2,445,448	-	2,445,448
Others	-	-	410,722	410,722
	$ 9,017,088	2,445,448	410,722	11,873,258
(iii) Contract balances
	December 31, 2025	December 31, 2024	January 1, 2024
Accounts receivable	$ 1,037,939	923,190	837,734
Less: allowance for impairment	(1,880)	(1,914)	(1,864)
Total	$ 1,036,059	921,276	835,870
Contract liabilities-Chemical fertilizers product	$ 118,101	109,420	108,018

For details on accounts receivable and allowance for impairment, please refer to note 6(d).

The amount of revenue recognized for the years ended December 31, 2025 and 2024 that was included in the contract liability balance at the beginning of the period were $77,916 and $77,129 thousand, respectively.

(s) Remuneration to employees and directors

The Company resolved to amend its Articles of Incorporation at the meeting of shareholders held on June 10, 2025. In accordance with the amended Articles of Incorporation, the Company should contribute 1%~3% of the current year profit as employee compensation, not greater than 1.6% as directors' remuneration and not less than 0.01% as remuneration for general employees when there is profit for the year. Under the previous Articles of Incorporation, the Company should contribute 1%~3% of the current year profit as employee compensation and no more than 1.6% as directors' remuneration when there is profit for the year. However, if the Company has accumulated deficits, the profit should be reserved to offset the deficit.

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

For the years ended December 31, 2025 and 2024, the Company estimated its employee remuneration amounting to $28,063 and $39,943 thousand, and directors' remuneration amounting to $18,709 and $26,629 thousand, respectively. The estimated amounts of remuneration for basic-level employees were $117 and $0 thousand, respectively. The estimated amounts mentioned above are calculated based on the net profit before tax, excluding the remuneration to employees and directors of each period, multiplied by the percentage of remuneration to employees and directors as specified in the Company's articles. These remunerations were expensed under operating costs or operating expenses during 2025 and 2024. The numbers of shares to be distributed for 2025 and 2024 were calculated based on the closing price of the Company's ordinary shares, one day before the date of the meeting of Board of Directors.

If there are any subsequent adjustments to the actual remuneration amounts after the annual consolidated financial statements are authorized for issue, the adjustment shall be accounted for as changes in accounting estimates and will be recognized in profit or loss in the following year.

There was no difference of employee compensation and directors' remuneration between the amount recognized on consolidated financial statements and actual distributed amount.

Information on remuneration to employees and directors resolved by the Corporation's Board of Directors in 2025 and 2024 is available at the Market Observation Post System website of the Taiwan Stock Exchange.

(t) Non operating income and expenses

(i) Interest income

The details of interest income for the years ended December 31, 2025 and 2024 were as follows:

	For the years ended December 31
	2025	2024
Interest income—bank deposits	$ 53,010	73,405
Other interest income	640	1,333
	$ 53,650	74,738

(ii) Other income

The details of other income for the years ended December 31, 2025 and 2024 were as follows:

	For the years ended December 31
	2025	2024
Dividends	$ 81,529	85,265
Others	41,420	15,938
	$ 122,949	101,203

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(iii) Other gains and losses

The details of other gains and losses for the years ended December 31, 2025 and 2024 were as follows:

	For the years ended December 31
	2025	2024
Loss on disposal of property, plant and equipment	$ (925)	(138)
Net foreign exchange gain	1,693	22,873
Gain on financial assets at fair value through profit or loss	8,309	5,080
Compensation	(499,000)	-
Impairment loss	(35,900)	(75,015)
Others	(49,525)	(19,907)
	$ (575,348)	(67,107)

(iv) Finance costs

The details of finance costs for the years ended December 31, 2025 and 2024 were as follows:

	For the years ended December 31
	2025	2024
Bank interest expense	$ 6,791	-
Lease liabilities interest expense	1,259	2,006
Less: Interest capitalization	(3,182)	-
	$ 4,868	2,006

(u) Financial instruments

(i) Credit risk

1) Exposure to credit risk

The carrying amount of financial assets represents the Group’s maximum credit exposure.

2) Credit risk concentrations

The clients of the Group are widely spread and unrelated; thus, credit risk is limited.

3) Receivables and debt securities

For credit risk exposure of notes and trade receivables, please refer to note 6(d).

Other financial assets at amortized cost includes other receivables, investments in government bonds, corporate bonds and time deposits.

Debt investments at fair value through other comprehensive income include government bonds, listed and unlisted debt securities.

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

All of these financial assets are considered to have low risk, and thus, the impairment provision recognized during the period was limited to 12 months expected credit losses.

The movement in the allowance for impairment during the years ended December 31, 2025 and 2024, please refer to note 6(d) and 6(e).

(ii) Liquidity risk

The following are the contractual maturities of financial liabilities, including estimated interest payment, but excluding the impact of netting agreements.

	Carrying amount	Within 1 year	1-5 years	More than 5 years
December 31, 2025
Non-derivative financial liabilities
Non-interest-bearing liabilities	$ 2,201,724	1,821,040	380,684	-
Lease liabilities	37,062	35,678	1,384	-
Variable-rate instruments	565,290	14,270	551,020	-
	$ 2,804,076	1,870,988	933,088	-
December 31, 2024
Non-derivative financial liabilities
Non-interest-bearing liabilities	$ 1,449,061	1,043,269	405,792	-
Lease liabilities	83,627	44,814	38,813	-
	$ 1,532,688	1,088,083	444,605	-

The Group does not expect the cash flows included in the maturity analysis to occur significantly earlier or at significantly different amounts.

(iii) Currency risk

1) Exposure to foreign currency risk

The following are the financial assets and liabilities exposure to significant foreign currency risk.

	December 31, 2025			December 31, 2024
	Foreign currency	Exchange rate	NTD	Foreign currency	Exchange rate	NTD
Financial assets
Monetary items
USD : NTD	$ 10,571	31.38	331,718	8,783	32.78	287,916
USD : MNT	1,930	31.38	60,563	1,989	32.78	65,201
Nonmonetary items
Investments accounted for using equity method
SAR : NTD	1,128,809	8.37	9,444,994	1,063,481	8.74	9,295,657
Financial liabilities
Monetary items
USD : NTD	852	31.38	26,736	852	32.78	27,929

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

2) Sensitivity analysis

The Group’s exposure to foreign currency risk arises from the translation of the foreign currency exchange gains and losses on cash and cash equivalents, accounts receivable, other receivables, amortized cost of financial assets, accounts payable and other payables that are denominated in foreign currency. A 10% of depreciation or appreciation of each major foreign currency against the Group’s functional currency as of December 31, 2025 and 2024 would have increased or decreased the net income after tax by $29,244 and $26,015 thousand, respectively. The analysis is performed on the same basis for both periods.

As the Group deals in diverse foreign currencies, gains or losses on foreign exchange were summarized as a single amount. For the years ended December 31, 2025 and 2024, the foreign exchange gains, including both realized and unrealized, amounted to $1,693 and $22,873 thousand, respectively.

(iv) Interest rate analysis

The interest risk exposure from financial assets and liabilities has been disclosed in the note of liquidity risk management.

The sensitivity analysis below is based on the exposure to equity price risks at the end of the reporting period. For floating-rate liabilities, the analysis is based on the assumption that the amount of liabilities outstanding on the reporting date is circulated throughout the year.

If interest rates had been 1 basis point higher/lower and all other variables were held constant, the Group’s interest expenses for the years ended December 31, 2025 and 2024 would have increased or decreased by $1,171 thousand and $0, respectively. Taking into account the capitalization of interest, the amount of impact on net profit was $0, as the Group’s loans bear floating interest rates.

(v) Other price risk

If the stock price changes at the reporting date, the changes in other comprehensive income of the Group are estimated as follows (The analysis was made on the same basis for both periods, assuming that all other variables remain constant and any impact to forecasted sales and purchases was ignored):

	For the years ended December 31
	2025		2024
Equity price at the end of the reporting period	Comprehensive income (loss) (net of tax)	Net income (loss) (net of tax)	Comprehensive income (loss) (net of tax)	Net income (loss) (net of tax)
Increase 5%	$ 217,832	40,628	216,888	16,610
Decrease 5%	$ (217,832)	(40,628)	(216,888)	(16,610)

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(vi) Fair value of financial instruments

1) Categories and fair value of financial instruments

The fair value of financial assets and liabilities at fair value through profit or loss, and financial assets at fair value through other comprehensive income (available for sale financial assets) is measured on a recurring basis. The carrying amount and fair value of the Group’s financial assets and liabilities, including the information on fair value hierarchy were as follows; however, except as described in the following paragraphs, for financial instruments not measured at fair value whose carrying amount is a reasonable approximation of fair value and lease liabilities, disclosure of fair value information is not required:

	December 31, 2025
	Carrying amount	Fair value
		Level 1	Level 2	Level 3	Total
Financial assets at fair value through profit or loss
Non derivative financial assets mandatorily measured at fair value through profit or loss	$ 1,015,699	1,015,699	-	-	1,015,699
Financial assets at fair value through other comprehensive income
Domestic stocks in listed companies	75,076	75,076	-	-	75,076
Unquoted equity instruments at fair value	4,281,556	-	-	4,281,556	4,281,556
Subtotal	4,356,632	75,076	-	4,281,556	4,356,632
Financial assets measured at amortized cost
Cash and cash equivalents	1,949,825	-	-	-	-
Other financial assets (including non-current)	627,124	-	-	-	-
Notes receivables and accounts receivables	1,036,059	-	-	-	-
Other receivables (including long-term)	75,225	-	-	-	-
Refundable deposit	24,466	-	-	-	-
Subtotal	3,712,699	-	-	-	-
Total	$ 9,085,030	1,090,775	-	4,281,556	5,372,331
Financial liabilities at amortized cost
Bank loans (including long-term)	$ 500,000	-	-	-	-
Notes and accounts payables	321,257	-	-	-	-
Other payables	1,499,783	-	-	-	-
Lease liabilities (including non-current)	36,689	-	-	-	-
Guarantee deposits received	380,684	-	-	-	-
Total	$ 2,738,413	-	-	-	-

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

	December 31, 2024
	Carrying amount	Fair value
		Level 1	Level 2	Level 3	Total
Financial assets at fair value through profit or loss
Non derivative financial assets mandatorily measured at fair value through profit or loss	$ 415,239	415,239	-	-	415,239
Financial assets at fair value through other comprehensive income
Domestic stocks in listed companies	71,018	71,018	-	-	71,018
Unquoted equity instruments at fair value	4,266,741	-	-	4,266,741	4,266,741
Subtotal	4,337,759	71,018	-	4,266,741	4,337,759
Financial assets measured at amortized cost
Cash and cash equivalents	4,088,248	-	-	-	-
Other financial assets (including non-current)	940,720	-	-	-	-
Notes receivables and accounts receivables	921,276	-	-	-	-
Other receivables (including long-term)	52,933	-	-	-	-
Refundable deposit	23,141	-	-	-	-
Subtotal	6,026,318	-	-	-	-
Total	$ 10,779,316	486,257	-	4,266,741	4,752,998
Financial liabilities at amortized cost
Notes and accounts payables	$ 290,535	-	-	-	-
Other payables	752,734	-	-	-	-
Lease liabilities (including non-current)	82,011	-	-	-	-
Guarantee deposits received	405,792	-	-	-	-
Total	$ 1,531,072	-	-	-	-

2) Valuation techniques for financial instruments not measured at fair value

The Group’s valuation techniques and assumptions used for financial instruments not measured at fair value are as follows:

a) Financial assets measured at amortized cost

If the quoted prices in active markets are available, the market price is established as the fair value. However, if quoted prices in active markets are not available, the estimated valuation or prices used by competitors are adopted.

b) Financial assets and financial liabilities measured at amortized cost

If there is quoted price generated by transactions, the recent transaction price and quoted price data is used as the basis for fair value measurement. However, if no quoted prices are available, the discounted cash flows are used to estimate fair values.

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

3) Valuation techniques for financial instruments measured at fair value:

a) Non-derivative financial instruments

When a financial instrument is regarded as quoted in an active market, the quoted prices in an active market will be the fair value. The market prices from the main exchanges and government bond exchanges are the basis of the fair value of OTC equity instruments and debt instruments which have a quoted market price in an active market.

A financial instrument is regarded as being quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency and those prices represent actual and regularly occurring market transactions on an arm’s-length basis. Otherwise, the market is deemed to be inactive. Normally, a market is considered to be inactive when: The bid-ask spread is enormous; or bid-ask spread varies significantly; or there has been a significant decline in trading volume.

Measurements of fair value of financial instruments without an active market are based on a valuation technique or quoted price from a competitor. Fair value measured by a valuation technique can be extrapolated from similar financial instruments, the discounted cash flow method, or other valuation technique including a model using observable market data at the reporting date.

If the financial instruments held by the Group do not belong to active markets, the category and nature of the fair value are as follows:

Equity investments without an active market: The fair value is assessed by market comparison approach. The main assumption is measured from the retained earnings multiplier as the basis.

4) Transfers between Level 1 and Level 2

There were no transfers in either direction in 2025 and 2024.

5) Reconciliation of Level 3 fair values

	Fair value through other comprehensive income
	Unquoted equity instruments
Opening balance, January 1, 2025	$ 4,266,741
Total gains and losses recognized
In other comprehensive income	(53,385)
Purchase	95,500
Capital reduction by capital stock return	(27,300)
Ending Balance, December 31, 2025	$ 4,281,556

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

	Fair value through other comprehensive income
	Unquoted equity instruments
Opening balance, January 1, 2024	$ 3,191,342
Total gains and losses recognized
In other comprehensive income	1,051,141
Purchase	36,000
Disposal and liquidation	(11,742)
Ending Balance, December 31, 2024	$ 4,266,741

For the years ended December 31, 2025 and 2024, total gains and losses that were included in “unrealized gains and losses from financial assets at fair value through other comprehensive income” were as follows:

	For the years ended December 31
	2025	2024
Total gains and losses recognized
In other comprehensive income, and presented in “unrealized gains and losses from financial assets at fair value through other comprehensive income”	$ (53,385)	1,051,141

6) Quantified information on significant unobservable inputs (Level 3) used in fair value measurement

The Group’s main financial instruments that use Level 3 inputs to measure fair value are “fair value through other comprehensive income – equity investments”.

The Group most fair value is categorized to Level 3 with single significant unobservable input. The equity investments without an active market has duplicate unobservable inputs. The unobservable inputs of the equity investments without an active market are independent, so there is no correlation to others.

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Quantified information of significant unobservable inputs was as follows:

Item	Valuation technique	Significant unobservable inputs	Inter-relationship between significant unobservable inputs and fair value measurement
Financial assets at fair value through other comprehensive income equity investments without an active market	Comparable transaction method	-The multiplier of price-to-sales ratio (As of December 31, 2025 and 2024 were 1.79~5.28 and 2.18~5.01)	The estimated fair value would increase (decrease) if:
		-The multiplier of price-to-book ratio (As of December 31, 2025 and 2024, were 1.39 and 1.70)	the multiplier were higher (lower)
		-The multiplier of enterprise value(As of December 31, 2025 and 2024, were 13.91 and 12.15)	the market illiquidity discount were lower (higher)
		-Market illiquidity discount (As of December 31, 2025 and 2024 were both 10%~33%)
Financial assets at fair value through other comprehensive income-equity investments without an active market	Net asset value method	-Net asset value	Not applicable

7) Fair value measurements in Level 3 – sensitivity analysis of reasonably possible alternative assumptions

The Group’s measurement on the fair value of financial instruments is deemed reasonable despite different valuation models or assumptions may lead to different results.

For fair value measurements in Level 3, changing one or more of the assumptions would have the following effects on profit or loss and other comprehensive income:

	Inputs	Fluctuation in inputs	Profit or loss		Other comprehensive income
			Favourable	Unfavourable	Favourable	Unfavourable
December 31, 2025
Financial assets at fair value through other comprehensive income Equity investments without an active market	Market illiquidity discount	±1%	-	-	42,258	(42,520)
December 31, 2024
Financial assets at fair value through other comprehensive income Equity investments without an active market	Market illiquidity discount	±1%	-	-	43,567	(43,561)

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

The favorable and unfavorable effects represent the changes in fair value, and fair value is based on a variety of unobservable inputs calculated using a valuation technique. The analysis above only reflects the effects of changes in a single input, and it does not include the interrelationships with another input.

(v) Financial risk management

(i) Overview

The Group has exposures to the following risks from its financial instruments:

1) Credit risk
2) Liquidity risk
3) Market risk

The following discusses the Group’s objectives, policies and processes for measuring and managing the above mentioned risks.

(ii) Risk management framework

The Group’s risk management policies are established to identify and analyze the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s activities.

(iii) Credit risk

Credit risk means the potential loss of the Group if the counterparty involved in that transaction defaults. The primary potential credit risk is from financial instruments like accounts receivable and equity securities.

1) Accounts receivables and other receivables

The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the demographics of the Group’s customer base, including the default risk of the industry and country in which customers operate, as these factors may have an influence on credit risk, particularly in the current deteriorating economic circumstances.

The Group has established a credit granting policy. According to the policy, the Group must analyze its credit rating individually for each new customer before granting standard payment and shipping conditions and terms.

The Group establishes an impairment allowance that represents its estimate of incurred losses in respect of trade receivables. The two components of this impairment allowance are specific loss component that relates to individually significant exposure and collective loss component which the loss was incurred but not identified. The collective component is based on historical payment experience of similar financial assets.

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

2) Investment

The credit risk exposure in the bank deposits, fixed income investments and other financial instruments are measured and monitored by the Group’s finance department. As the Group deals with the banks and other external parties with good credit standing and financial institutions, corporate organization and government agencies which are graded above investment level, management believes that the Group does not have compliance issues and no significant credit risk.

3) Guarantees

As of December 31, 2025 and 2024, the endorsement guarantee provided by the Group to individual entities of joint ventures, please refer to note 7.

(iv) Liquidity risk

Liquidity risk is a risk that the Group is unable to meet the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group’s approach to managing liquidity is to ensure, as much as possible, that it always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation.

(v) Market risk

Market risk is a risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

1) Currency risk

The Group is exposed to currency risk on sales, purchases and borrowings that are denominated in a currency. The currencies used in these transactions are denominated in USD, EUR, JPY, and RMB.

The exchange gains or losses of trade receivables in foreign currencies resulting from the changes in exchange rates are offset against the exchange losses or gains of short-term borrowings in foreign currencies; thus, the exposure to foreign currency risk is insignificant.

The interest is denominated in the same currency as borrowings. Generally, borrowings are denominated in currencies that match the cash flows generated by the underlying operations of the Group.

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

In respect of other monetary assets and liabilities denominated in foreign currencies, the Group ensures that its net exposure is kept to an acceptable level by buying or selling foreign currencies at spot rates when necessary to address short term imbalances.

The investments of other subsidiaries of the Group are not for hedging.

2) Interest rate risk

The Group’s interest rate risk arises from short-term and long-term loans bearing floating interest rates. Future cash flow will be affected by a change in market interest rate.

3) Other market risk

The Group does not enter into any commodity contracts other than to meet its expected usage and sales requirements; such contracts are not settled on a net basis.

(w) Capital management

The Group’s objectives in managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Group may adjust the dividend payment to the shareholders, return capital to shareholders, and issue new shares or sell assets to reduce debts.

The Group manages capital by the debt to equity ratio. Such ratio is calculated as net liabilities divided by total capital. Net liabilities represent the total amount of liabilities on the balance sheet minus cash and cash equivalents. The total amount of capital represents all the equity components (share capital, capital surplus, retained earnings, and other equity) plus net liabilities.

The Group’s capital management strategy is consistent for the years ended December 31, 2025 and 2024, with the gearing ratio maintained within 28% to 32%, to ensure financing at reasonable cost. The Group’s debt to equity ratios in the years ended December 31, 2025 and 2024 were as follows:

	December 31, 2025	December 31, 2024
Total liabilities	$ 27,249,941	25,417,955
Less: cash and cash equivalents	(1,949,825)	(4,088,248)
Net debt	25,300,116	21,329,707
Total capital	54,274,693	55,689,235
Adjusted capital	$ 79,574,809	77,018,942
Debt to equity ratio	31.79%	27.69%

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(x) Investing and financing activities not affecting current cash flow

The Group’s investing and financing activities which did not affect the current cash flow in the years ended December 31, 2025 and 2024, were as follows:

	For the years ended December 31
	2025	2024
Purchases of property, plant and equipment	$ 475,298	538,326
Add: opening balances of equipment and construction payables	86,897	72,176
Deduction: closing balances of equipment and construction payables	(90,164)	(86,897)
	$ 472,031	523,605
	For the years ended December 31
	2025	2024
Purchases of investment property	$ 2,153,614	466,934
Add: opening balances of equipment payables	-	259,513
	$ 2,153,614	726,447

(7) Related-party transactions:

(a) Names and relationship with related parties

The following are entities that have had transactions with the related parties during the periods covered in the non consolidated financial statements.

Name of related party	Relationship with the Group
Al-Jubail Fertilizer Company	Equity-method investee
TR Electronic Chemical Co.,Ltd.	The Group's jointly controlled entity
TR Electronic Chemical (Kunshan) Ltd.	The Group's jointly controlled entity’s subsidiary (Note)
Ministry of Agriculture	Individuals are those entities in which the Group has significant influence
Agriculture Bank of Taiwan	The Group's government - related entities
TAIWAN Fertilizer Legal Foundation	Other related parties

Note: The bankruptcy of TR Electronic Chemical (Kunshan) Ltd. was declared by the Court in China in September, 2017, and the relevant statutory procedures had been completed in August, 2020.

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(b) Significant transactions with related parties

(i) Receivables from related parties

The receivables from related parties were as follows:

Account	Relationship	December 31, 2025	December 31, 2024
Account receivable	Joint venture	$ -	455

(ii) Government-related entities

The Ministry of Agriculture, Executive Yuan, holds 24.07% of the Group’s outstanding ordinary shares. In 2025, the Group obtained a loan of $500,000 thousand from the Agricultural Bank of Taiwan Co., Ltd., an entity significantly influenced by the Ministry of Agriculture, Executive Yuan. Certain parcels of the Group’s land, recognized as investment property, were pledged as collateral for the loan, which is repayable in five years. The interest rate on the loan is based on the one-year time deposit floating rate of the Agricultural Bank of Taiwan, and is comparable to the rates with on the Group’s other bank loans.

(iii) Others

1) TR Electronic Chemical Co., Ltd. (TR), a jointly controlled entity of the Corporation, had obtained a financing of US$10,000 thousand from a bank, and the Corporation and Jing Chin International Limited Corporation, a shareholder of TR, guaranteed the repayment of this financing. When TR failed to make a repayment, the bank then requested the guarantors to repay the loan partially. Because the Corporation could only provide TR-in compliance with the “Regulations Governing the Granting of Loans and Endorsements and Guarantees by Public Companies” - with a limited amount of endorsement, the Corporation’s board approved the repayment of TR’s loan, as following.

Due Date	Date of Repayment	Amount in USD	Amount in NTD
March 27, 2014	June 27, 2014	$ 4,570	144,641
April 26, 2015	April 24, 2015	3,300	102,610
March 27, 2016	March 31, 2016	2,147	70,026

Considering the weakening operating and repayment capability of TR, the Corporation recognized an impairment loss in 2015.

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

2) The bankruptcy of TR Electronic Chemical (Kunshan) Ltd., declared by the Court in China in September 2017, was investigated, and the proposal of liquidated property distribution was announced publicly in mid August, 2018. In November 2018, the Kunshan Court of China reversed its decision and terminated the bankruptcy liquidation process of TR, with the approval of the Market Supervision Administrations of Kunshan in August 2020. Also, the investors of TR Electronic Chemical Co. Ltd., JIN QUN INTERNATIONAL CO., Ltd. and other six stockholders, institute the civil lawsuit with joint liquidation liability in Taipei District Court. The first instance was pronounced in December, 2018. However, the stockholders were not satisfied with the result and appealed for the second instance. The second instance was pronounced in January, 2019. However, the stockholders were not satisfied with the result and appealed for the third instance. In March 2020, the Taiwan High Court delivered the appeal to the Supreme Court. The verdict of the third instance and the second instance was pronounced annulled in August 2021 and the appeal was sent back to the Taiwan High Court for retrial. The Taiwan High Court rendered its first-instance judgment on April 18, 2023, in the case involving Mr. Zhao. The appeals filed by Mr. Zhao and the subsidiary company were both rejected. On June 5, 2024, the Supreme Court overruled the appeals filed by Mr. Zhao and the Group, and the judgment was affirmed.

The remunerations to directors and other key management personnel were as follows:

	For the years ended December 31
	2025	2024
Salaries and other short-term employee benefits	$ 54,341	61,497
Post-employment benefits	3,072	8,494
	$ 57,413	69,991

(8) Pledged assets:

The information of the carrying value of pledged assets were as follows:

Asset	Purpose of pledge	December 31, 2025	December 31, 2024
Other financial asset current and non-current	Guarantee of material purchase amount, security in litigation and engineering deposit	$ 345,768	343,268
Investment property	Long-term borrowings	1,023,900	-
		$ 1,369,668	343,268

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(9) Commitments and contingencies:

(a) Significant commitments and contingencies

(i) Significant commitments and contingencies were as follows:

	December 31, 2025	December 31, 2024
Acquisition of property, plant, and equipment	$ 227,127	51,388
Acquisition of investment property	$ 12,416,519	3,652,545

(ii) Unused standby letters of credit

	December 31, 2025	December 31, 2024
USD thousands	$ 5,583	550

(iii) The Corporation had guarantee notes payable for its debt as follow:

	December 31, 2025	December 31, 2024
Guarantee notes payable	$ 10,975,000	8,189,600

(b) Partial commercial building and parking lot’s area of “C2 Tourist Hotel Project” and “Commercial Building Project” in Nangang Economic and Trade Park have unresolved lease disputes with Dung Jeng Investment Counsel Co., Ltd. (“Dung Jeng”) at the end of 2021. Dung Jeng subsequently filed a lawsuit requesting for the right to use the 6 floors and 849 parking lots. After years of litigation, the court mediated wherein both parties reached a settlement on December 23, 2025. Under the settlement, the Group shall pay $599,000 thousand to Dung Jeng, and Dung Jeng shall no longer assert any rights over the office building and 849 parking lots located on Land Lot No. 12, Jingmao Section, Nangang District, Taipei City.

The Group may recover the guarantee deposit of $295,000 thousand, classified as other financial assets-current, lodged with the Court, resulting in the Group to recognize the estimated compensation loss of $100,000 thousand for this leasing dispute in 2023. Moreover, an additional provision of $499,000 thousand, totaling $599,000 thousand, was recognized as other payables in 2025 in accordance with the settlement, which was fully concluded.

(c) Caesar Park Hotel Co., Ltd. (Caesar Park Hotel) won the bid on the case of the “C2 Tourist Hotel Project” in 2012. Thereafter, it entered into a front-end agreement (FEA) with the Group. However, as the Group’s internal development strategy has changed, and an adjustment was made to the performance bond, in which the two parties failed to reach an agreement, resulting in Caesar Park Hotel to send a letter to the Group in June 2023 to terminate their contract, and thereafter, filed a lawsuit against the Group to the Taipei District Court, demanding for a damage compensation. The Group has appointed lawyers to handle the case, which was still in progress as of the reporting date. The Group assessed that currently there is no significant impact on its finances or operations.

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(d) In 2015, the Group granted the land use rights over the Nangang C3 land parcel to Taiwan Life Insurance Co., Ltd. (“Taiwan Life”). Due to soil treatment issues arising during the development process, Taiwan Life initiated legal proceedings against the Group, claiming the soil treatment and removal damage of $188,000 thousand.

In August 2025, the Group was order to pay the amount of $114,000 thousand in the first instance of the court's ruling. Based on the assessment of the Group’s legal counsel, the management believes that the judgment may involve errors in fact finding and the application of law, prompting the Group to file an appeal to safeguard its rights and interests.

(10) Losses due to major disasters: None

(11) Subsequent events:

On February 2, 2026, the Group received a civil complaint from Taiwan Life Insurance Co., Ltd. (“Taiwan Life”), claiming for the damage of $914,000 thousand. The claim primarily relates to the Group having granted the land use right to Taiwan Life for the Nangang C3 land. Taiwan Life alleged that, during the development process, the soil treatment issues resulted in additional construction costs and loss of rental income, and therefore, filed a lawsuit with the Taipei District Court.

Based on the Group’s assessment of the land use right agreement entered into with Taiwan Life, Taiwan Life is responsible for independently verifying the actual conditions of the land and shall bear all costs and risks associated with the planning, development, and operation of the project. Accordingly, the Group believes that the above matter is not expected to result in any material adverse impact on its financial position or operating results. The Group will engage legal counsel to respond to the litigation to safeguard its lawful rights and interests.

(12) Other:

(a) A summary of current-period employee benefits, depreciation, and amortization, by function, is as follows:

By item	2025			2024
	Operating Cost	Operating expense	Total	Operating Cost	Operating expense	Total
Employee benefit
Salary	$ 475,786	512,570	988,356	463,985	480,117	944,102
Labor and health insurance	40,914	29,757	70,671	40,827	29,329	70,156
Pension	22,542	15,974	38,516	22,316	15,427	37,743
Others	21,958	15,360	37,318	21,834	13,287	35,121
Depreciation	1,352,271	82,364	1,434,635	1,347,360	60,162	1,407,522
Amortization	-	3,262	3,262	-	2,900	2,900

The depreciation of non-operating income and expenses of the Group in 2025 and 2024 were $2,290 and $2,558 thousand, respectively.

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(13) Other disclosures:

(a) Information on significant transactions

The following is the information on significant transactions required by the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” for the Group:

(i) Loans to other parties:

(In Thousands of New Taiwan Dollars)

Number	Name of lender	Name of borrower	Account name	Related party	Highest balance of financing to other parties during the period	Ending balance	Actual usage amount during the period	Range of interest rates during the period	Purposes of fund financing for the borrower	Transaction amount for business between two parties	Reasons for short-term financing	Allowance for bad debt	Collateral		Individual funding loan limits	Maximum limit of fund financing
													Item	Value
0	The Company	Duyan Co., Ltd/City State Co., Ltd/Kuam Chu Construction Co., Ltd.	Long-term receivable	No	8,276	7,680	7,482	3.845%-2.720%	1	79,500	–	–	Commercial paper	15,890	2,713,735	10,854,939
0	The Company	OO Lin	Long-term receivable	No	8,870	8,231	8,018	1.845%-2.720%	1	85,300	–	–	Commercial paper	17,030	2,713,735	10,854,939
0	The Company	OO Liao	Long-term receivable	No	8,625	8,004	7,797	1.845%-2.720%	1	83,120	–	–	Commercial paper	16,560	2,713,735	10,854,939
0	The Company	OO Huang	Long-term receivable	No	642	–	–	1.645%-2.520%	1	77,000	–	–	Commercial paper	15,400	2,713,735	10,854,939
0	The Company	OO Chuang	Long-term receivable	No	662	–	–	1.645%-2.520%	1	79,500	–	–	Commercial paper	15,890	2,713,735	10,854,939

Note 1: (1) The total amount available for lending purpose shall not exceed 20% of the net worth of the Company.
(2) The accumulated capital loan and amount of the Company to a single enterprise with business transactions shall be limited to 5% of net worth of the Company.

Note 2: If there is a business transaction, the contract price between the two parties shall be used as the business transaction amount.

Note 3: The second order of mortgage right mentioned above is used as collateral.

Note 4: In accordance with the letter of the Financial Supervision and Administration Commission of the Republic of China on March 11, 2020, No. 1090330422 and in practice, the construction industry generally gives customers a payment of one to five years in installments, and writes off 10 years and 20 years. The goods are disclosed in the table above.

(ii) Guarantees and endorsements for other parties: None

(iii) Securities held as of December 31, 2025 (excluding investment in subsidiaries, associates and joint ventures):

(In Thousands of New Taiwan Dollars)

Category and name of securities	Market securities type/name and issuer	Relationship with company	Account title	Ending balance			Highest percentage of ownership (%)	Note
				Shares/Units (thousands)	Carrying value	Percentage of ownership (%)
The Company	Mutual funds
	CTBC Hwa-win Money Market Fund	–	Fair value through profit or less- current	6,870	80,025	– %	80,025	– %
o	Fabon Chi-Hsiang Money Market Fund	–	o	10,257	170,053	– %	170,053	– %
o	SinoPac TWD Money Market Fund	–	o	11,548	170,054	– %	170,054	– %
o	Fabon Money Market Fund	–	o	5,094	80,027	– %	80,027	– %
o	FSITC Taiwan Money Market Fund	–	o	10,492	170,055	– %	170,055	– %
o	Taishin 1699 Money Market Fund	–	o	5,569	80,027	– %	80,027	– %
o	UPAMC James Bond Money Market Fund	–	o	9,628	170,056	– %	170,056	– %
o	Taishin Tu-Chung Money Market Fund	–	o	5,319	80,026	– %	80,026	– %
Taiwan Yes Deep Ocean Water Co., Ltd.	Fuh Hwa Money Market Fund	–	o	1,012	15,376	– %	15,376	– %

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Category and name of securities	Market securities type/name and issuer	Relationship with company	Account title	Ending balance				Highest percentage of ownership (%)	Note
				Shares/Units (thousands)	Carrying value	Percentage of ownership (%)	Fair value
The Company	Ordinary shares
	Eminent Venture Capital Corporation	Our Company is legal representative director of the company	FVOCI - noncurrent	675	7,290	10.00 %	7,290	10.00 %	Note 3
✓	Eminent II VC Corp	✓	✓	5,070	38,025	18.50 %	38,025	18.50 %	Note 3
✓	Eminent III VC Corp	✓	✓	30,000	228,000	16.56 %	228,000	16.56 %	Note 3
✓	Taiwan Stock Exchange Corporation	—	✓	34,631	3,844,086	2.00 %	3,844,086	2.00 %	Note 4
✓	Vingemeer Inc.	Our Company is legal representative director of the company	✓	3,147	21,904	10.43 %	21,904	10.43 %	Note 4
✓	TaiAn Technologics Corporation	—	✓	1,667	22,050	16.67 %	22,050	16.67 %	Note 3
✓	Eleven Cellulosity Corporation	—	✓	1,500	-	6.71 %	-	6.71 %
✓	Phalanx Biotech Co., Ltd.	—	✓	125	-	0.17 %	-	0.17 %
✓	Bion Tech Inc.	Our Company is legal representative director of the company	✓	4,167	-	15.16 %	-	15.16 %
✓	China Petrochemical Development Corporation	—	FVOCI - current	9,662	75,076	0.26 %	75,076	0.26 %	Note 2
Taifir Investment Co., Ltd.	Taiwan Bio-Manufacturing Corp.	—	FVOCI - noncurrent	1,800	30,922	0.39 %	30,922	0.39 %	Note 5
✓	CAROTA Corp.	—	✓	500	41,585	1.15 %	41,585	1.15 %	Note 5
✓	EJBS Semiconductor Ltd.	—	✓	600	47,694	1.40 %	47,694	1.40 %	Note 5

Note 1: The market value was calculated on the basis of the net asset value as of the balance sheet date.
Note 2: The market value was calculated on the basis of the closing price on the Taiwan Stock Exchange as of the balance sheet date.
Note 3: The market value was calculated on the basis of the unaudited financial statement for the same period.
Note 4: The market value was calculated on the basis of the estimated fair value per share of the expert evaluation report.
Note 5: The market value was calculated on the basis of the estimated fair value per share of the comparable transactions method.

(iv) Related-party transactions for purchases and sales with amounts exceeding the lower of NT$100 million or 20% of the capital stock: None.
(v) Receivables from related parties with amounts exceeding the lower of NT$100 million or 20% of the capital stock: None.
(vi) Business relationships and significant intercompany transactions:

(In Thousands of New Taiwan Dollars)

No.	Name of company	Name of counter-party	Nature of relationship	Intercompany transactions
				Account name	Amount	Trading terms	Percentage of the consolidated net revenue or total assets
0	The Company	Taiwan Yes Deep Ocean Water Co., Ltd.	1	Sales	351	were not significantly different from others	-%
		Taiwan Yes Deep Ocean Water Co., Ltd.	1	Rental revenue	1	were not significantly different from others	-%
		Taiwan Yes Deep Ocean Water Co., Ltd.	1	Other operating revenue	74	were not significantly different from others	-%
		Taiwan Yes Deep Ocean Water Co., Ltd.	1	Cost of goods sold	84	were not significantly different from others	-%
		Taiwan Yes Deep Ocean Water Co., Ltd.	1	Selling expenses	803	were not significantly different from others	0.01%
		Taiwan Yes Deep Ocean Water Co., Ltd.	1	Administrative expenses	543	were not significantly different from others	-%
		Taiwan Yes Deep Ocean Water Co., Ltd.	1	Research and development expenses	9	were not significantly different from others	-%
		Taiwan Yes Deep Ocean Water Co., Ltd.	1	Accounts receivable	38	were not significantly different from others	-%
		Taiwan Yes Deep Ocean Water Co., Ltd.	1	Other receivables	4	were not significantly different from others	-%
		Taiwan Yes Deep Ocean Water Co., Ltd.	1	Guarantee deposits	1,962	were not significantly different from others	-%
		Taiwan Yes Deep Ocean Water Co., Ltd.	1	Other payables	5	were not significantly different from others	-%
		PEIFENG Technoloy & Fertilizer Co., Ltd	1	Cost of goods sold	215,854	were not significantly different from others	1.79%
		PEIFENG Technoloy & Fertilizer Co., Ltd	1	Sales revenue	27,494	were not significantly different from others	0.23%

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

No.	Name of company	Name of counter-party	Nature of relationship	Intercompany transactions
				Account name	Amount	Trading terms	Percentage of the consolidated net revenue or total assets
0	The Company	PEIFENG Technology & Fertilizer Co., Ltd	1	Accounts receivable	5,136	were not significantly different from others	0.01%
		PEIFENG Technology & Fertilizer Co., Ltd	1	Accounts payable	19,213	were not significantly different from others	0.02%
		PEIFENG Technology & Fertilizer Co., Ltd	1	Other payable	19,156	were not significantly different from others	0.02%

Note 1: The numbering is as follows:
(1) "0" represents the parent company.
(2) Subsidiaries are sequentially numbered from 1 by company.

Note 2: The types of transaction between the parent company and subsidiaries are as follows:
(1) Transactions from parent company to subsidiary.
(2) Transactions from subsidiary to parent company.
(3) Transactions between subsidiaries.

Note 3: The report only disclosed the data of sales and accounts receivable of the significant trade between parent and subsidiary. The relative purchase and accounts payable will not be disclosed redundantly.

Note 4: It is the amount of consolidated operating revenue or consolidated total assets divided by trading amount.

Note 5: The transaction listed on the consolidated financial statements has been eliminated through consolidation.

(b) Information on investees (excluding information on investees in China):

The following is the information on investees for the years ended December 31, 2025:

(In Thousands of New Taiwan Dollars)

Name of investor	Name of investor	Location	Main business and products	Original investment amount		Balance as of December 31, 2025			Highest percentage of ownership	Net income (losses) of investor	Share of profit/losses of investor	Note
				December 31, 2025	December 31, 2024	Shares (thousands)	Percentage of ownership	Carrying value
The Company	Al-Jabal Fertilizer Company	Kingdom of Saudi Arabia	Manufacture of urea, 2-EH (2-ethyl hexanol), and DOP (dioctyl phthalate)	1,050,000	1,050,000	-	50.00 %	9,444,994	50.00 %	2,665,619	1,208,006	Associate
a	Tailor Investment Co., Ltd.	Taiwan	International trade; wholesale of fertilizer, tobacco, liquor, beverage, forage, machinery, electrical equipment, etc.; development, operation and management of residential buildings and factory buildings; special zone development; investment in and construction of public works; development of new towns and districts; agent services on regional district acquisition; land adjustment; real estate rental or leasing; and investment	197,841	197,841	20,739	100.00 %	201,896	100.00 %	(1,046)	(1,046)	Subsidiary
a	Taiwan Yeo Deep Ocean Water Co., Ltd.	Taiwan	Wholesale of drinks, food and grocery and other articles for daily use; tobacco and liquor; glass and pottery; hygiene products; fertilizers and other chemical products; and cosmetics; and international trade	1,251,398	1,251,398	28,479	100.00 %	175,911	100.00 %	5,253	(29,838)	Subsidiary
a	PEIFENG Technology & Fertilizer Co., Ltd	Taiwan	Manufacture and wholesale of fertilizer	2,400,000	2,400,000	240,000	100.00 %	2,583,064	100.00 %	131,798	131,798	Subsidiary
a	TAIFER (CAYMAN) INTERNATIONAL GROUP CO., LTD.	Cayman Islands	Investment and holding	321,900	321,900	-	100.00 %	-	100.00 %	-	-	Subsidiary
a	MITAURI CO., LTD.	Taiwan	Wholesale and retail of products for organic agriculture	105,580	105,580	5,869	32.52 %	45,945	32.52 %	(2,371)	(6,789)	Associate
a	TAIFER (CAMBODIA) CO., LTD	Cambodia	International trade; wholesale of fertilizer	9,242	9,242	-	100.00 %	4,652	100.00 %	-	-	Subsidiary

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Name of investor	Name of investor	Location	Main businesses and products	Original investment amount		Balance as of December 31, 2025			Highest percentage of ownership	Net income (losses) of investor	Share of profit/losses of investor	Note
				December 31, 2025	December 31, 2024	Shares (thousands)	Percentage of ownership	Carrying value
The Company	Tai Ying Sustainability Co., Ltd.	Taiwan	Basic chemical industrial; other chemical materials manufacturing; other chemical products manufacturing; wholesale of chemical foodstock, wholesale of other chemical materials and products; self-range power generation equipment utilising renewable energy industry; international trade; investment	100,000	-	10,000	100.00 %	99,977	100.00 %	(23)	(23)	Subsidiary
TAIFER (CAYMAN) INTERNATIONAL GROUP CO., LTD.	TB ELECTRONIC CHEMICAL CO., LTD.	Cayman Islands	Investment and holding	321,962	321,962	-	51.00 %	-	51.00 %	-	Not required to disclosure	Joint Venture
Taiwan Yes Deep Ocean Water Co., Ltd.	TAIFER INTERNATIONAL (SAMOA) GROUP CO.,LTD.	Samoa	Investment and holding	42,618	42,618	-	100.00 %	67,525	100.00 %	5,808	*	Subsidiary
TAIFER INTERNATIONAL (SAMOA) GROUP CO.,LTD.	TAIFER CHEMICAL INTERNATIONAL LIC.	Mongolia	Real estate rental lease	41,077	41,077	-	100.00 %	66,740	100.00 %	7,281	*	Subsidiary

(i) The names of investees in Mainland China, the main businesses and products, and other information:

(In Thousands of New Taiwan Dollars)

Name of investor	Main businesses and products	Total amount of paid-in capital	Method of investment	Accumulated outflow of investment from Taiwan as of January 1, 2025	Investment flows		Accumulated outflow of investment from Taiwan as of December 31, 2025	Net income (losses) of the investor	Percentage of ownership	Highest percentage of ownership	Investment income (losses)	Book value	Accumulated remittance of earnings in current period
					Outflow	Inflow
TR Electronic Chemical (Kanshan) Ltd.	Manufacture of nitric acid, hydrofluoric acid, ammonia, phosphoric acid, oxalic acid, ammonia fluoride and LCD and IC Stripper	GIDS 21,590	(Note 3)	GIDS -	-	-	GIDS -	GIDS -	-%	-%	GIDS -	GIDS -	-
		(NT$74,670) (Note 4)		(NT$ - ) (Note 4)			(NT$ - ) (Note 1)	(NT$ - ) (Note 1)			(NT$ - ) (Note 5)	(NT$ - ) (Note 5)

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(ii) Limitation on investment in Mainland China:

Accumulated investment in Mainland China as of December 31, 2025	Investment amounts authorized by investment commission, MOEA	Upper limit on investment
NT$ -
(US$ - )
(Note 1)	NT$ 344,082
(US$ 10,965 )
(Note 4)	NT$32,564,816
(Note 2)

Note 1: The Group applied for the cessation of its operations to the Local Court on March 17, 2017, and the cessation was completed in August, 2020. The accumulated investment amount of disposed in the current period is NT$344,082 thousand (US$10,965 thousand), and the accumulated investment amount from Taiwan of remitted at the end of the period is zero.

Note 2: The limit is based on the “Regulations Governing the Approval of Investment or Technical Cooperation in Mainland China” issued by the Investment Commission under the Ministry of Economic Affairs; the amount is 60% of shareholders’ equity or of consolidated shareholders’ equity.

Note 3: Indirect investment in mainland China through a subsidiary in a third place. (Investor: TAIFER (CAYMAN) INTERNATIONAL GROUP CO., LTD.)

Note 4: The foreign currency amounts of original investment amount and carrying value were translated into New Taiwan dollars at the exchange rate NT$31.380 as of December 31, 2025.

Note 5: As of June 30, 2015, the investment accounted for using the equity method balance of the Corporation was zero, so the Company did not recognize income (loss) of the investment.

(iii) Significant transactions: None

(14) Segment information:

(a) General information

Information reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance focuses on the types of goods or services delivered or provided. Specifically, the Group’s reportable segments under IFRS 8 “Operating Segments” were fertilizer and chemical, real estate and investment business.

(b) Reportable segment profit or loss, segment assets, segment liabilities, and their measurement and reconciliations

The Group uses the internal management report that the chief operating decision maker reviews as the basis to determine resource allocation and make a performance evaluation. The internal management report includes profit before taxation, excluding any extraordinary activity and foreign exchange gain or losses, because taxation, extraordinary activity and foreign exchange gains or losses are managed on a group basis, and hence they are not able to be allocated to each reportable segment. In addition, not all reportable segments include depreciation and amortization of significant non-cash items. The reportable amount is similar to that in the report used by the chief operating decision maker.

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

The operating segment accounting policies are similar to the ones described in Note 4 “Significant accounting policies” except for the recognition and measurement of pension cost, which is on a cash basis. The Group treated intersegment sales and transfers as third-party transactions. They are measured at market price.

The Group’s operating segment information and reconciliation were as follows:

For the year ended December 31, 2025	Fertilizer and chemical	Real estate and investment business	Others	Adjustment and eliminations	Total
External customer revenues	$ 9,333,732	2,509,555	244,422	-	12,087,709
Intersegment revenues	215,854	1	29,358	(245,213)	-
Total revenue	$ 9,549,586	2,509,556	273,780	(245,213)	12,087,709
Net gains and losses of intersegment	$ (349,329)	861,069	(149,652)	-	362,088
Interest income					53,650
Other income					122,949
Other gains and losses					(575,348)
Finance costs					(4,868)
Share of profit of associates and joint ventures accounted for using equity method					1,202,076
Reportable segment profit or loss					$ 1,160,547
For the year ended December 31, 2024	Fertilizer and chemical	Real estate and investment business	Others	Adjustment and eliminations	Total
---	---	---	---	---	---
External customer revenues	$ 9,017,088	2,445,448	410,722	-	11,873,258
Intersegment revenues	236,237	4,682	42,489	(283,408)	-
Total revenue	$ 9,253,325	2,450,130	453,211	(283,408)	11,873,258
Net gains and losses of intersegment	$ (121,832)	765,438	(93,900)	-	549,706
Interest income					74,738
Other income					101,203
Other gains and losses					(67,107)
Finance costs					(2,006)
Share of profit of associates and joint ventures accounted for using equity method					981,290
Reportable segment profit or loss					$ 1,637,824

(Continued)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

	Fertilizer and chemical	Real estate and investment business	Others	Adjustment and eliminations	Total
Reportable segment assets
December 31, 2025	$ 19,393,038	61,847,005	353,920	(69,329)	81,524,634
December 31, 2024	$ 19,504,072	61,270,954	404,124	(71,960)	81,107,190
Reportable segment liabilities
December 31, 2025	$ 6,297,740	20,983,329	14,412	(45,540)	27,249,941
December 31, 2024	$ 5,553,870	19,889,903	21,545	(47,363)	25,417,955

The revenue-generating units of the Group were mainly in Republic of China. Thus, the disclosure of geographical information was not required.

(d) Major customer

	For the years ended December 31
	2025	2024
Customer A from fertilizer and chemical department	$ 1,240,103	1,237,856

AI assistant

TFC — Audit Report / Information 2025

51902_rns_2026-04-21_2c9677bc-48e0-4e1a-af05-333948ac6549.pdf

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Table of contents

Representation Letter

Independent Auditors’ Report

Opinion

Basis for Opinion

Key Audit Matters

1. Inventory Valuation

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

Notes to Readers

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Cash Flows (CONT'D)

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(4) Summary of material accounting policies:

(a) Statement of compliance

(b) Basis of preparation

(i) Basis of measurement

(ii) Functional and presentation currency

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

TAIWAN FERTILIZER CO., LTD. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

TFC Audit Report / Information 2025