Thye Ming Industrial Co., Ltd. and Subsidiaries

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

DECLARATION OF CONSOLIDATION FINANCIAL STATEMENTS OF AFFILIATES

The companies required to be included in the consolidated financial statements of affiliates in accordance with the "Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises" for the year ended December 31, 2025 are all the same as the companies required to be included in the consolidated financial statements of parent and subsidiary companies as provided in International Financial Reporting Standard 10 "Consolidated Financial Statements". Relevant information that should be disclosed in the consolidated financial statements of affiliates has all been disclosed in the consolidated financial statements of parent and subsidiary companies. Hence, we do not prepare a separate set of consolidated financial statements of affiliates.

Very truly yours,

Thye Ming Industrial Co., Ltd.

Chen, Li-Ming
Chairman of the Board

March 13, 2026

Deloitte.

勤業眾信

勤業眾信聯合會計師事務所

110421 台北市信義區松仁路100號20樓

Deloitte & Touche

20F, Taipei Nan Shan Plaza

No. 100, Songren Rd.,

Xinyi Dist., Taipei 110421, Taiwan

Tel: +886 (2) 2725-9988

Fax: +886 (2) 4051-6888

www.deloitte.com.tw

INDEPENDENT AUDITORS' REPORT

The Board of Directors and Shareholders

Thye Ming Industrial Co., Ltd.

Opinion

We have audited the accompanying consolidated financial statements of Thye Ming Industrial Co., Ltd. (the "Company") and its subsidiaries (collectively referred to as the "Group"), which comprise the consolidated balance sheets as of December 31, 2025 and 2024, and the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and the notes to the consolidated financial statements, including material accounting policy information (collectively referred to as the "consolidated financial statements").

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission (FSC) 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 the Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the 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 for our opinion.

Key Audit Matters

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

The key audit matter identified in the Group's consolidated financial statements for the year ended December 31, 2025 is as follows:

Occurrence of Sales Revenue from Specific Customers

The Group's main source of revenue comes from the sale of lead alloys, such as yellow and red lead, among which the growth rate of sales revenue from specific customers is significantly higher. Therefore, in accordance with the Statements on Auditing Standards on the presumption of revenue recognition as a significant risk, the occurrence of the sales revenue from these specific customers was deemed a key audit matter.

To evaluate the occurrence of the sales revenue, the following audit procedures were performed:

We obtained an understanding of and tested the effectiveness of internal control operations over the occurrence of revenue recognition.
We sample tested to verify whether the selected samples of specific customers' revenue details were consistent with the sales items and amounts received from the shipper, invoices issued and payment records. We checked whether the bill of lading had been signed by the customer or attached to shipping documents such as export declarations.

Other Matter

We have also audited the parent company only financial statements of the Company as of and for the years ended December 31, 2025 and 2024 on which we have issued an unmodified 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 the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and the IFRS, IAS, IFRIC, and SIC endorsed and issued into effect by the FSC 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.

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 auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these 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 maintain 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.
3 -

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 auditors’ report. However, future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including 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 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.

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 for the year ended December 31, 2025 and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audits resulting in this independent auditors’ report are Chiu-Yen Wu and Yu-Hsiang Liu.

Deloitte & Touche
Taipei, Taiwan
Republic of China

March 13, 2026

Notice to Readers

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

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

Thye Ming Industrial Co., Ltd. and Subsidiaries

CONSOLIDATED BALANCE SHEETS

DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	December 31, 2025		December 31, 2024
ASSETS	Amount	%	Amount	%
CURRENT ASSETS
Cash and cash equivalents (Notes 4 and 6)	$ 1,332,020	21	$ 2,447,425	33
Financial assets at fair value through profit or loss (Notes 4 and 7)	977,600	16	1,111,126	15
Financial assets at amortized cost - current (Notes 4 and 9)	197,687	3	284,199	4
Notes receivable, net (Notes 4 and 10)	3,161	-	4,098	-
Accounts receivable, net (Notes 4, 10 and 27)	1,094,103	17	1,012,258	14
Other receivables	20,090	-	23,154	-
Inventories (Notes 4, 5 and 11)	1,671,818	26	1,451,672	20
Prepayments	59,461	1	44,934	1
Total current assets	5,355,940	84	6,378,866	87
NON-CURRENT ASSETS
Financial assets at fair value through other comprehensive income (Notes 4 and 8)	182,164	3	178,835	2
Financial assets at amortized cost - non-current (Notes 4, 9 and 28)	44,324	1	46,196	1
Property, plant and equipment (Notes 4, 13 and 29)	549,642	9	541,985	7
Right-of-use assets (Notes 4 and 14)	11,353	-	8,940	-
Investment properties (Notes 4 and 15)	187,107	3	181,080	3
Intangible assets (Note 4)	13,755	-	11,138	-
Deferred tax assets (Notes 4 and 23)	8,222	-	7,282	-
Refundable deposits	2,603	-	2,788	-
Prepayment for equipment	2,732	-	469	-
Other non-current assets	-	-	142	-
Total non-current assets	1,001,902	16	978,855	13
TOTAL	$ 6,357,842	100	$ 7,357,721	100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term borrowings (Note 16)	$ -	-	$ 35,000	-
Contract liabilities (Note 21)	25,323	-	18,375	-
Notes payable (Note 17)	133	-	-	-
Accounts payable (Notes 17 and 27)	133,560	2	183,217	2
Other payables (Note 18)	92,752	1	117,897	2
Current tax liabilities (Note 23)	162,471	3	111,533	2
Lease liabilities - current (Notes 4 and 14)	1,456	-	412	-
Other current liabilities	731	-	735	-
Total current liabilities	416,426	6	467,169	6
NON-CURRENT LIABILITIES
Provisions (Note 4)	2,256	-	4,273	-
Deferred tax liabilities (Notes 4 and 23)	279,036	5	276,986	4
Lease liabilities - non-current (Notes 4 and 14)	2,375	-	-	-
Net defined benefit liabilities (Notes 4 and 19)	11,466	-	10,543	-
Deposits received (Note 15)	910	-	910	-
Total non-current liabilities	296,043	5	292,712	4
Total liabilities	712,469	11	759,881	10
EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY (Note 20)
Ordinary shares	1,200,000	19	1,673,185	23
Capital surplus	975,330	15	975,330	13
Retained earnings
Legal reserve	1,398,145	22	1,292,626	18
Special reserve	339,290	5	377,195	5
Unappropriated earnings	2,170,917	34	2,591,417	35
Total retained earnings	3,908,352	61	4,261,238	58
Other equity	(466,659)	(7)	(339,290)	(5)
Total equity attributable to owners of the Company	5,617,023	88	6,570,463	89
NON-CONTROLLING INTERESTS (Note 20)	28,350	1	27,377	1
Total equity	5,645,373	89	6,597,840	90
TOTAL	$ 6,357,842	100	$ 7,357,721	100

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

Thye Ming Industrial Co., Ltd.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2025 AND 2024

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

	2025		2024
	Amount	%	Amount	%
OPERATING REVENUE, NET (Notes 4, 21 and 27)	$ 8,048,159	100	$ 8,553,557	100
OPERATING COSTS (Notes 11, 22 and 27)	7,048,123	88	7,324,463	86
GROSS PROFIT	1,000,036	12	1,229,094	14
OPERATING EXPENSES (Notes 10 and 22)
Selling and marketing expenses	75,765	1	84,569	1
General and administrative expenses	155,728	2	181,686	2
Expected credit loss recognized on accounts receivables	795	-	19	-
Total operating expenses	232,288	3	266,274	3
PROFIT FROM OPERATIONS	767,748	9	962,820	11
NON-OPERATING INCOME AND EXPENSES (Notes 22 and 27)
Interest income	82,426	1	103,088	1
Other income	40,151	1	29,600	-
Other gains and losses	(42,320)	(1)	231,115	3
Finance costs	(69)	-	(1,249)	-
Total non-operating income and expenses	80,188	1	362,554	4
PROFIT BEFORE INCOME TAX	847,936	10	1,325,374	15
INCOME TAX EXPENSE (Notes 4 and 23)	191,660	2	270,334	3
NET PROFIT FOR THE YEAR	656,276	8	1,055,040	12
OTHER COMPREHENSIVE INCOME (LOSS) (Notes 19, 20 and 23)
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit plans	(2,385)	-	3,570	-
Unrealized gain (loss) on investments in equity instruments at fair value through other comprehensive income	3,329	-	6,927	-
Income tax relating to items that will not be reclassified subsequently to profit or loss	477	-	(714)	-
	1,421	-	9,783	-

(Continued)

Thye Ming Industrial Co., Ltd.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2025 AND 2024

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

	2025		2024
	Amount	%	Amount	%
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of the financial statements of foreign operations	$ (130,548)	(1)	$ 30,948	1
Other comprehensive income (loss) for the year, net of income tax	(129,127)	(1)	40,731	1
TOTAL COMPREHENSIVE INCOME FOR THE YEAR	$ 527,149	7	$ 1,095,771	13
NET PROFIT ATTRIBUTABLE TO:
Owners of the Company	$ 652,954	8	$ 1,052,318	12
Non-controlling interests	3,322	-	2,722	-
	$ 656,276	8	$ 1,055,040	12
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Owners of the Company	$ 523,656	7	$ 1,093,091	13
Non-controlling interests	3,493	-	2,680	-
	$ 527,149	7	$ 1,095,771	13
EARNINGS PER SHARE (Note 24)
Basic	$ 4.26		$ 6.29
Diluted	$ 4.25		$ 6.28

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

Thye Ming Industrial Co., Ltd. and Subsidiaries

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	Equity Attributable to the Owners of the Company
	Ordinary Shares	Capital Surplus	Retained Earnings				Other Equity Unrealized Gain and Loss on Financial Assets at Fair Value Through Other Comprehensive Income			Total	Non-controlling Interests
			Legal Reserve	Special Reserve	Unappropriated Earning	Total	Exchange Differences on Translation of the Financial Statements of Foreign Operations	Unrealized Gain and Loss on Financial Assets at Fair Value Through Other Comprehensive Income	Total
BALANCE AT JANUARY 1, 2024	$ 1,673,185	$ 975,330	$ 1,193,381	$ 343,419	$ 2,530,942	$ (399,361)	$ 22,166	$ (377,195)	$ 6,339,062	$ 27,697	$ 6,366,759
Appropriation of 2023 earnings (Note 20)
Legal reserve	-	-	99,245	-	(99,245)	-	-	-	-	-	-
Special reserve	-	-	-	33,776	(33,776)	-	-	-	-	-	-
Cash dividends distributed by the Company	-	-	-	-	(861,690)	-	-	-	(861,690)	-	(861,690)
	-	-	99,245	33,776	(994,711)	-	-	-	(861,690)	-	(861,690)
Cash dividends distributed by subsidiaries	-	-	-	-	-	-	-	-	-	(3,000)	(3,000)
Net profit for the year ended December 31, 2024	-	-	-	-	1,052,318	-	-	-	1,052,318	2,722	1,055,040
Other comprehensive income (loss) for the year ended December 31, 2024, net of income tax	-	-	-	-	2,868	30,948	6,957	37,905	40,773	(42)	40,731
Total comprehensive income for the year ended December 31, 2024	-	-	-	-	1,055,186	30,948	6,957	37,905	1,093,091	2,680	1,095,771
BALANCE ON DECEMBER 31, 2024	1,673,185	975,330	1,292,626	377,195	2,591,417	(368,413)	29,123	(339,290)	6,570,463	27,377	6,597,840
Appropriation of 2024 earnings (Note 20)
Legal reserve	-	-	105,519	-	(105,519)	-	-	-	-	-	-
Special reserve	-	-	-	(37,905)	37,905	-	-	-	-	-	-
Cash dividends distributed by the Company	-	-	-	-	(1,003,911)	-	-	-	(1,003,911)	-	(1,003,911)
	-	-	105,519	(37,905)	(1,071,525)	-	-	-	(1,003,911)	-	(1,003,911)
Cash reduction of capital (Note 20)	(473,185)	-	-	-	-	-	-	-	(473,185)	-	(473,185)
Cash dividends distributed by subsidiaries	-	-	-	-	-	-	-	-	-	(2,520)	(2,520)
Net profit for the year ended December 31, 2025	-	-	-	-	652,954	-	-	-	652,954	3,322	656,276
Other comprehensive income (loss) for the year ended December 31, 2025, net of income tax	-	-	-	-	(1,929)	(130,548)	3,179	(127,369)	(129,298)	171	(129,127)
Total comprehensive income (loss) for the year ended December 31, 2025	-	-	-	-	651,025	(130,548)	3,179	(127,369)	523,656	3,493	527,149
BALANCE ON DECEMBER 31, 2025	$ 1,200,000	$ 975,330	$ 1,398,145	$ 339,290	$ 2,170,917	$ (498,961)	$ 32,302	$ (466,659)	$ 5,617,023	$ 28,350	$ 5,645,373

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

Thye Ming Industrial Co., Ltd. and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax	$ 847,936	$ 1,325,374
Adjustments for:
Depreciation expense	66,501	72,054
Amortization expense	825	529
Expected credit loss recognized on accounts receivable	795	19
Net profit on fair value changes of financial assets at fair value through profit or loss	(24,361)	(43,052)
Finance costs	69	1,249
Interest income	(82,426)	(103,088)
Dividend income	(29,200)	(21,700)
Gain on disposal of property, plant and equipment	(1,536)	(671)
Write-down (recovery gains) of inventories	471	(8,964)
Reversal of impairment loss on investment property	(6,518)	-
Unrealized loss (gain) on foreign currency exchange	1,860	(1,240)
Gain on physical inventory	(45)	(117)
Changes in operating assets and liabilities
Financial assets at fair value through profit or loss	157,887	(694,228)
Notes receivable	937	(1,104)
Accounts receivable	(98,912)	32,522
Other receivables	2,496	3,332
Inventories	(259,084)	320,530
Other current assets	(17,265)	(12,956)
Contract liabilities	(6,674)	(9,394)
Notes payable	133	(29)
Accounts payable	(46,711)	33,203
Other payables	(25,495)	(5,377)
Provisions	(2,017)	96
Other current liabilities	(4)	(6)
Net defined benefit liabilities	(1,462)	(1,491)
Cash generated from operations	478,200	885,491
Interest received	82,426	103,088
Dividends received	29,200	21,700
Interest paid	(109)	(1,464)
Income tax paid	(139,135)	(306,036)
Net cash generated from operating activities	450,582	702,779
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of financial assets at amortized cost	-	(67,704)
Proceeds from disposal of financial assets at amortized cost	66,062	-
Payments for property, plant and equipment	(81,663)	(68,707)
Proceeds from disposal of property, plant and equipment	3,450	671
Increase in refundable deposits	(2,785)	-
Decrease in refundable deposits	2,970	366
		(Continued)

Thye Ming Industrial Co., Ltd. and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars)

	2025	2024
Payments for intangible assets	$ (3,300)	$ (716)
Net cash used in investing activities	(15,266)	(136,090)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of short-term borrowings	(35,000)	(465,000)
Increase in refundable deposits	-	660
Repayment of the principal portion of lease liabilities	(1,010)	(1,635)
Dividends paid to owners of the Company	(1,003,911)	(861,690)
Capital reduction for cash	(473,185)	-
Dividends paid to non-controlling interests	(2,520)	(3,000)
Net cash used in financing activities	(1,515,626)	(1,330,665)
EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH AND CASH EQUIVALENTS	(35,095)	10,416
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(1,115,405)	(753,560)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR	2,447,425	3,200,985
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	$ 1,332,020	$ 2,447,425

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

10 -

Thye Ming Industrial Co., Ltd. and Subsidiaries

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

1. GENERAL INFORMATION

Thye Ming Industrial Co., Ltd. (the "Company") was incorporated in February 1983 under the laws of the Republic of China. The Company mainly manufactures and sells the following products: Antimony lead alloy, Calcium lead alloy, Litharge and Red lead. The Company obtained Waste Disposal Technician Certification (Class A) in 1994 and started providing general business waste recycling and regeneration services. Authorization for resource reutilization was duly secured from the Ministry of Economic Affairs in 2023.

The Company's shares have been listed on the Taiwan Stock Exchange since March 1999.

The consolidated financial statements are presented in the Company's functional currency, the New Taiwan dollar.

2. APPROVAL OF FINANCIAL STATEMENTS

The consolidated financial statements were approved by the Company's board of directors on March 13, 2026.

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

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

The initial application of the amendments to the IFRS Accounting Standards endorsed and issued into effect by the FSC did not have material impact on the accounting policies of the Company and consolidated entities controlled by the Company (collectively, the "Group").

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

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

As of the date the consolidated financial statements were authorized for issue, the Group assessed that the initial application of the above standards and interpretations will not have material impact on the financial position and financial performance.

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

New, Amended and Revised Standards and Interpretations	Effective Date Announced by IASB (Note 1)
Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture”	To be determined by IASB
IFRS 18 “Presentation and Disclosure in Financial Statements”	January 1, 2027 (Note 2)
IFRS 19 “Subsidiaries without Public Accountability: Disclosures” (including the 2025 amendments to IFRS 19)	January 1, 2027
Amendments to IAS 21 “Translation to a Hyperinflationary Presentation Currency”	January 1, 2027

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

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

IFRS 18 “Presentation and Disclosure in Financial Statements” and consequential amendments

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

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

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

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

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

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

a. Statement of compliance

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

b. Basis of preparation

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

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

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

c. Classification of current and non-current assets and liabilities

Current assets include:

1) Assets held primarily for the purpose of trading;
2) Assets expected to be realized within 12 months after the reporting period; and
3) Cash and cash equivalents unless the assets are restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.

Current liabilities include:

1) Liabilities held primarily for the purpose of trading;
2) Liabilities due to be settled within twelve months after the reporting period; and

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3) Liabilities for which the Group does not have the substantial right at the end of the reporting period to defer settlement for at least 12 months after the reporting period.

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

d. Basis of consolidation

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

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

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

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

See Note 12 and Table 3 for detailed information on subsidiaries (including percentages of ownership and main businesses).

e. Foreign currencies

In preparing the financial statements of each individual entity, transactions in currencies other than the entity’s functional currency (i.e., foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.

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

Non-monetary items denominated in foreign currencies that are measured at fair value are retranslated at the rates prevailing at the date when the fair value is determined. Exchange differences arising from the retranslation of non-monetary items are included in profit or loss for the period except for exchange differences arising from the retranslation of non-monetary items, in respect of which gains and losses are recognized directly in other comprehensive income; in which cases, the exchange differences are also recognized directly in other comprehensive income. Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rate at the date of the transaction, and not retranslated subsequently.

For the purpose of presenting consolidated financial statements, the functional currencies of the Company and the entities in the Group (including subsidiaries in other countries that use currencies different from the currency of the Company) are translated into the presentation currency, the New Taiwan dollar, as follows: Assets and liabilities are translated at the exchange rates prevailing at the end of the reporting year, and income and expense items are translated at the average exchange rates for the year. The resulting currency translation differences are recognized in other comprehensive income.

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f. Inventories

Inventories consist of raw materials, supplies, work-in-process, by-products, finished goods and products and are stated at the lower of cost or net realizable value. Inventory write-downs are made by item, except where it may be appropriate to group similar or related items. The net realizable value is the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. Inventories are recorded at the weighted-average cost on the balance sheet date.

g. Property, plant, and equipment

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

Property, plant and equipment in the course of construction are measured at cost less any recognized impairment loss. Cost includes professional fees and borrowing costs eligible for capitalization. Before that asset reaches its intended use are measured at the lower of cost or net realizable value, and any proceeds from selling those assets and the cost of those assets are recognized in profit or loss. Such assets are depreciated and classified to the appropriate categories of property, plant and equipment when completed and ready for intended use.

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

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

h. Investment properties

Investment properties are properties held to earn rental and/or for capital appreciation.

Investment properties are initially measured at cost, including transaction costs. Subsequent to initial recognition, investment properties are measured at cost less accumulated depreciation and accumulated impairment loss. Depreciation is recognized using the straight-line method.

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

i. Intangible assets

Intangible assets with finite useful lives that are acquired separately are initially measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment loss.

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

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

j. Impairment of property, plant and equipment, right-of-use asset and intangible assets

At the end of each reporting year, the Group reviews the carrying amounts of its property, plant and equipment, right-of-use asset, and intangible assets to determine whether there is any indication that

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those assets have suffered any impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. Corporate assets are allocated to individual cash-generating units or the smallest group of cash-generating units on a reasonable and consistent basis of allocation.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually and whenever there is an indication that the assets may be impaired.

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

When an impairment loss is subsequently reversed, the carrying amount of the corresponding asset, cash-generating unit or assets related to contract costs is increased to the revised estimate of its recoverable amount, but only to the extent of the carrying amount that would have been determined had no impairment loss been recognized on the asset, cash-generating unit or assets related to contract costs in prior years (less depreciation and amortization). A reversal of an impairment loss is recognized in profit or loss.

k. Financial instruments

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

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

1) Financial assets

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

a) Measurement category

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

i Financial assets at FVTPL

Financial assets are classified as at FVTPL when such a financial asset is mandatorily classified as at FVTPL; financial assets mandatorily classified as at FVTPL are investments in equity instruments which are not designated as at FVTOCI.

Financial assets at FVTPL are measured at fair value, and any dividends or interest earned on such financial assets are recognized in other income; any remeasurement gains or losses on such financial assets are recognized in other gains or losses.

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ii Financial assets at amortized cost

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

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

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

A financial asset is credit-impaired when one or more of the following events have occurred:

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

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

iii Investments in equity instruments at FVTOCI

On initial recognition, the Group may make an irrevocable election to designate investments in equity instruments that are not held for trading or contingent consideration recognized by an acquirer in a business combination as at FVTOCI.

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

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

b) Impairment of financial assets

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

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

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

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

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

ii When a financial asset is more than 90 days past due unless the Group has reasonable and corroborative information to support a more lagged default criterion.

The Group recognizes an impairment loss and reversal of impairment loss in profit or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account.

c) Derecognition of financial assets

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

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

2) Equity instruments

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

The repurchase of the Group's own equity instruments is recognized in and deducted directly from equity. No gain or loss is recognized in profit or loss on the purchase, sale, issuance or cancellation of the Group's own equity instruments.

3) Financial liabilities

a) Subsequent measurement

The Group's financial liabilities are measured at amortized cost using the effective interest method.

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b) Derecognition of financial liabilities

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

Liability provision

The amount recognized as a liability provision, including other long-term employee benefits, is measured at the best estimate of the expenditure of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. The liability provision is measured at the estimate of the discounted cash flows of the consideration required to settle the present obligation.

m. Revenue recognition

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

1) Revenue from the sale of goods

Revenue from sale of goods comes from sales of lead alloy ingots. Sales of lead alloy ingots are recognized as revenue when the goods are shipped or delivered to the customer's specific location, i.e., the time the performance obligations are satisfied.

The Group does not recognize revenue from transfer of materials to contractors for processing because the control and ownership of the materials are not transferred.

2) Revenue from rendering of services

Revenue from rendering of services comes from processing of products and lead slag removal services for customers. Consequently, the related revenue is recognized when services are rendered.

n. Leases

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

1) The Group as lessor

Leases are classified as operating leases whenever the terms of a lease do not transfer substantially all the risks and rewards of ownership to the lessee.

Under operating leases, lease payments are recognized as income on a straight-line basis over the terms of the relevant leases.

2) The Group as lessee

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

Right-of-use asset is the land-use right which is located in Vietnam. Right-of-use asset is measured at cost less accumulated depreciation. Right-of-use assets and lease liabilities are presented on separate lines in the consolidated balance sheets.

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Right-of-use assets are depreciated using the straight-line method over the lease period.

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

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in a lease term, a change in the amounts expected to be payable under a residual value guarantee, a change in the assessment of an option to purchase an underlying asset, or a change in future lease payments resulting from a change in an index or a rate used to determine those payments, the Group remeasures the lease liabilities with a corresponding adjustment to the right-of-use-assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. Lease liabilities are presented on a separate line in the consolidated balance sheets.

o. Borrowing costs

Borrowing costs directly attributable to an acquisition, construction or production of qualifying assets are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.

Other than those stated above, all other borrowing costs are recognized in profit or loss in the period in which they are incurred.

p. Employee benefits

1) Short-term employee benefits

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

2) Retirement benefits

Payments to defined contribution retirement benefit plans are recognized as expenses when employees have rendered services entitling them to the contributions.

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

Net defined benefit liabilities represent the actual deficit in the Group’s defined benefit plan. Any surplus resulting from this calculation is limited to the present value of any refunds from the plans or reductions in future contributions to the plans.

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3) Other long-term employee benefits

Other long-term employee benefits are accounted for in the same way as the accounting required for defined benefit plans except that remeasurement is recognized in profit or loss.

q. Taxation

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

1) Current tax

Income tax payable (recoverable) is based on taxable profit (loss) for the year determined according to the applicable tax laws of each tax jurisdiction.

According to the Income Tax Law in the ROC, an additional tax on unappropriated earnings is provided for in the year the shareholders approve to retain earnings.

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

2) Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

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

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

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

3) Current and deferred taxes for the year

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

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5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

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

When developing material accounting estimates, the Group considers the possible impact of its economic environment implications. The estimates and underlying assumptions are reviewed on an ongoing basis.

Key sources of estimation uncertainty - write-down of inventories

The net realizable value of inventories is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. The estimation of net realizable value is based on current market conditions and historical experience in the sale of product of a similar nature. Changes in market conditions may have a material impact on the estimation of the net realizable value.

6. CASH AND CASH EQUIVALENTS

	December 31
	2025	2024
Cash on hand	$ 522	$ 321
Checking accounts and demand deposits	577,754	889,178
Cash equivalents (investments with original maturities of 3 months or less)
Time deposits	94,257	443,372
Repurchase agreement bonds	659,487	1,114,554
	$ 1,332,020	$ 2,447,425

The market rate intervals of cash equivalents at the end of the year were as follows:

	December 31
	2025	2024
Time deposits (%)	4.00-4.20	1.58-4.85
Repurchase agreement bonds (%)	3.90-4.00	4.7-4.85

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

	December 31
	2025	2024
Mandatorily classified as at FVTPL
Non-derivative financial assets
Fund beneficiary certificate	$ 977,600	$ 1,111,126

For the net gain of financial assets at fair value through profit or loss, refer to Note 22.

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8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

	December 31
	2025	2024
Non-current
Domestic listed preferred shares	$ 97,700	$ 95,200
Domestic unlisted shares	84,464	83,635
	$ 182,164	$ 178,835

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

9. FINANCIAL ASSETS AT AMORTIZED COST

	December 31
	2025	2024
Time deposits with original maturities of more than 3 months	$ 197,687	$ 284,199
Cathay Corporate Bonds	31,224	33,096
Restricted financial assets	13,100	13,100
	$ 242,011	$ 330,395
Current	$ 197,687	$ 284,199
Non-current	$ 44,324	$ 46,196
	December 31
	2025	2024
a. Annual interest rate of time deposits with original maturities of more than 3 months (%)	5.0	4.4-5.2
b. Annual interest rate of restricted financial assets (%)	1.69-1.70	1.58-1.69

c. In May 2024 and October 2023, the Group bought 10-year corporate bonds issued by Cathay Company, each with a face value of US$500 thousand. The bonds have coupon rates of 5.80% and 6.10%, with effective interest rates of 5.67% and 5.96%, respectively.

d. Refer to Note 28 for information relating to investments in financial assets at amortized cost pledged as security.

NOTES RECEIVABLE AND ACCOUNTS RECEIVABLE, NET

	December 31
	2025	2024
Operating activities
Notes receivable
At amortized cost
Gross carrying amount	$ 3,161	$ 4,098
Accounts receivable
At amortized cost
Gross carrying amount	$ 1,095,589	$ 1,013,005
Less: Allowance for impairment loss	1,486	747
	$ 1,094,103	$ 1,012,258

a. Notes receivable

The Group assessed that notes receivable were not overdue and no allowance for impairment loss is provided at the end of reporting period.

b. Accounts receivable

The average credit period for sales of goods is 30-90 days. No interest is charged on accounts receivable. The Group adopted a policy of only dealing with entities that are rated the equivalent of investment grade or higher and using other publicly available financial information and mutual transaction records to evaluate major customers.

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

The Group measures the loss allowance for accounts receivable at an amount equal to lifetime ECLs. The expected credit losses on accounts receivable are estimated by reference to past default experience and current financial position of the customers. As the Group's historical credit loss experience does not show significantly different loss patterns for different customer segments, the customer base is not further distinguished.

The following table details the loss allowance of accounts receivable based on past due date.

December 31, 2025

	Not Past Due	1 to 30 Days Past Due	Total
Expected credit loss rate (%)	0.01-0.46	0.29
Gross carrying amount	$ 1,084,727	$ 10,862	$ 1,095,589
Loss allowance (Lifetime ECLs)	(1,454)	(32)	(1,486)
Amortized cost	$ 1,083,273	$ 10,830	$ 1,094,103

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December 31, 2024

	Not Past Due	1 to 30 Days Past Due	Total
Expected credit loss rate (%)	0-0.34	0.03
Gross carrying amount	$ 1,002,058	$ 10,947	$ 1,013,005
Loss allowance (Lifetime ECLs)	(744)	(3)	(747)
Amortized cost	$ 1,001,314	$ 10,944	$ 1,012,258

The movements of allowance for impairment loss of accounts receivable were as follows:

	For the Year Ended December 31
	2025	2024
Balance on January 1	$ 747	$ 728
Impairment loss recognized	795	19
Foreign exchange gains and losses	(56)	-
Balance on December 31	$ 1,486	$ 747

11. INVENTORIES

	December 31
	2025	2024
Raw materials	$ 353,063	$ 394,459
Supplies	30,850	28,852
Semi-finished goods	147,848	56,626
Work in process	113,133	100,282
Finished goods	622,811	705,476
By-products	1,948	1,359
Merchandise	219,192	94,001
Inventory in transit	182,973	70,617
	$ 1,671,818	$ 1,451,672

Operating costs were all related to inventories for the years ended December 31, 2025 and 2024, which included the following items:

	For the Year Ended December 31
	2025	2024
Write-down (reversed) of inventories	$ 471	$ (8,964)
Gain on physical inventory	(45)	(117)
Loss on idle capacity	6,040	4,521
Revenue from sale of scrap	(1,676)	(3,852)
	$ 4,790	$ (8,412)

Inventory write-downs were reversed as a result of increased selling prices of the inventories.

12. SUBSIDIARIES

Subsidiaries included in the consolidated financial statements were as follows:

Name of Investor	Name of Investee	Main Businesses and Products	Percentage of Ownership (%)
			December 31, 2025	December 31, 2024
The Company	Thai Wey Industrial Co., Ltd.	Note 1	88	88
	Thye Ming Industrial (Samoa)	Investment holding company	100	100
Thye Ming Industrial (Samoa)	Taiming Corp.	Investment holding company	100	100
Taiming Corp.	Thye Ming (Vietnam) Co., Ltd.	Note 2	100	100

Note 1: Trading and processing of metals and alloy ingots, import and export trade and general waste disposal business.
Note 2: Production of various lead-based products. Domestic waste and lead storage; batteries, various lead products and plastic recycling.

13. PROPERTY, PLANT AND EQUIPMENT

For the year ended December 31, 2025

	Land	Buildings	Machinery and Equipment	Others	Construction in Progress	Total
Cost
Balance on January 1, 2025	$ 277,123	$ 278,431	$ 776,080	$ 347,347	$ 10,886	$ 1,689,867
Additions	-	4,548	56,276	19,684	(318)	80,190
Disposal	-	(6,828)	(15,510)	(19,188)	-	(41,526)
Effect of foreign currency exchange differences	-	(9,262)	(11,774)	(8,658)	(227)	(29,921)
Balance on December 31, 2025	$ 277,123	$ 266,889	$ 805,072	$ 339,185	$ 10,341	$ 1,698,610
Accumulated depreciation
Balance on January 1, 2025	$ -	$ (194,223)	$ (651,944)	$ (301,715)	$ -	$ (1,147,882)
Depreciation expense	-	(12,032)	(39,709)	(12,863)	-	(64,604)
Disposal	-	6,828	15,510	17,274	-	39,612
Effect of foreign currency exchange differences	-	5,690	11,003	7,213	-	23,906
Balance on December 31, 2025	$ -	$ (193,737)	$ (665,140)	$ (290,091)	$ -	$ (1,148,968)
Carrying amount on December 31, 2025	$ 277,123	$ 73,152	$ 139,932	$ 49,094	$ 10,341	$ 549,642

For the year ended December 31, 2024

	Land	Buildings	Machinery and Equipment	Others	Construction in Progress	Total
Cost
Balance on January 1, 2024	$ 277,123	$ 271,972	$ 722,425	$ 333,310	$ 27,237	$ 1,632,067
Additions	-	4,096	54,441	16,496	(16,434)	58,599
Disposal	-	-	(3,777)	(4,640)	-	(8,417)
Effect of foreign currency exchange differences	-	2,363	2,991	2,181	83	7,618
Balance on December 31, 2024	$ 277,123	$ 278,431	$ 776,080	$ 347,347	$ 10,886	$ 1,689,867
Accumulated depreciation
Balance on January 1, 2024	$ -	$ (178,766)	$ (610,915)	$ (291,019)	$ -	$ (1,080,700)
Depreciation expense	-	(14,099)	(42,060)	(13,513)	-	(69,672)
Disposal	-	-	3,777	4,640	-	8,417
						(Continued)

27 -

	Land	Buildings	Machinery and Equipment	Others	Construction in Progress	Total
Effect of foreign currency exchange differences	$ -	$ (1,358)	$ (2,746)	$ (1,823)	$ -	$ (5,927)
Balance on December 31, 2024	$ -	$ (194,223)	$ (651,944)	$ (301,715)	$ -	$ (1,147,882)
Carrying amount on December 31, 2024	$ 277,123	$ 84,208	$ 124,136	$ 45,632	$ 10,886	$ 541,985
						(Concluded)

The additions to property, plant and equipment and the related cash payment were reconciled as follows:

	For the Year Ended December 31
	2025	2024
Investing activities affecting both cash and non-cash items
Increase in property, plant and equipment	$ 80,190	$ 58,599
Capitalized interest	(35)	(37)
Decrease (increase) in payable for purchase of equipment (other payables)	(755)	9,676
Increase in prepayment for equipment	2,263	469
Payments for property, plant and equipment	$ 81,663	$ 68,707

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

Buildings
Buildings of plant and office	20-45 years
Roof upgrading and improvement works in plant and office	15-39 years
Raw material storage area and improvement works	3-10 years
Others	5 years
Machinery and equipment	2-15 years
Others
Factory fence	40 years
Electrical equipment	3-15 years
Office equipment	2-8 years
Transportation equipment	3-6 years
Others	2-30 years

14. LEASE ARRANGEMENTS

a. Right-of-use assets

	December 31
	2025	2024
Carrying amount
Land	$ 7,539	$ 8,400
Transportation equipment	3,814	540
	$ 11,353	$ 8,940

28 -

	For the Year Ended December 31
	2025	2024
Additions to right-of-use assets	$ 4,429	$ -
Depreciation charge for right-of-use asset
Land	$ 251	$ 268
Transportation equipment	1,155	1,621
	$ 1,406	$ 1,889

The right-of-use asset is the land-use right obtained by the Company's subsidiary in Vietnam, Thye Ming (Vietnam) Co, Ltd. The asset was initially recorded at cost of acquisition and subsequently stated at cost less accumulated depreciation. Depreciation is calculated by the straight-line method over the contract period of 47 years, which ends in January 2055.

Except for the additions and recognized depreciation, the right-of-use asset did not have significant sublease or impairment in 2025 and 2024.

b. Lease liabilities

	December 31
	2025	2024
Carrying amounts
Current	$ 1,456	$ 412
Non-current	2,375	-
	$ 3,831	$ 412

Range of discount rate for lease liabilities was as follows:

	December 31
	2025	2024
Transportation equipment (%)	2.30	1.23

c. Other lease information

	For the Year Ended December 31
	2025	2024
Expenses relating to low-value asset leases	$ 96	$ 96
Total cash outflow for leases	$ 1,146	$ 1,747

For information about the operating leases of investment properties, refer to Note15.

15. INVESTMENT PROPERTIES

For the year ended December 31, 2025

	Land	Buildings	Total
Cost
Balance on January 1 and December 31, 2025	$ 182,291	$ 14,496	$ 196,787
Accumulated depreciation
Balance on January 1, 2025	$ 6,518	$ 9,189	$ 15,707
Reversal of impairment loss	(6,518)	-	(6,518)
Depreciation	-	491	491
Balance on December 31, 2025	$ -	$ 9,680	$ 9,680
Carrying amount on December 31, 2025	$ 182,291	$ 4,816	$ 187,107
For the year ended December 31, 2024
	Land	Buildings	Total
Cost
Balance on January 1 and December 31, 2024	$ 182,291	$ 14,496	$ 196,787
Accumulated depreciation
Balance on January 1, 2024	$ 6,518	$ 8,696	$ 15,214
Depreciation	-	493	493
Balance on December 31, 2024	$ 6,518	$ 9,189	$ 15,707
Carrying amount on December 31, 2024	$ 175,773	$ 5,307	$ 181,080

Investment properties of the Group are depreciated using the straight-line method over their estimated useful lives of 25-40 years.

The fair values of the investment properties for the years ended December 31, 2025 and 2024 were $385,733 thousand and $317,743 thousand, respectively, based on the valuations carried out by independent qualified professional real estate appraisers in May 2025 and May 2022. The fair value was measured using Level 3 inputs, including respective reference to market evidence of transaction prices for similar properties, cost method and income approach - direct capitalization method etc. The Company assessed that the reversal of impairment loss was $6,518 thousand in 2025 and classified it as non-operating income based on real estate appraisal.

The Group had received deposits of $910 thousand for operating lease contracts, as of December 31, 2025 and 2024, respectively.

The lease periods of investment properties are 2 to 10 years. Lease payments will be adjusted when the lessees exercise their options to extend on the basis of changes in market rental rates. The lessees do not have bargain purchase option to acquire the investment properties at the expiry of the lease periods.

The maturity analysis of lease payments receivable under operating leases of investment properties as of December 31, 2025 and 2024 was as follows:

	December 31
	2025	2024
Year 1	$ 6,735	$ 6,885
Year 2	6,525	6,735
Year 3	6,525	6,525
Year 4	6,525	6,525
Year 5	5,265	6,525
Year 5 onwards	7,343	12,608
	$ 38,918	$ 45,803

16. SHORT-TERM BORROWINGS

	December 31
	2025	2024
Unsecured borrowings
Bank loans	$ -	$ 35,000
The annual interest rates of short-term borrowings were as follows:
	December 31
	2025	2024
Line of credit borrowing (%)	-	0.5

17. NOTES PAYABLE AND ACCOUNTS PAYABLE

	December 31
	2025	2024
Operating
Notes payable - nonrelated parties	$ 133	$ -
Operating
Accounts payable - nonrelated parties	$ 131,073	$ 183,217
Accounts payable - related parties	2,487	-
	$ 133,560	$ 183,217

The credit period of the purchase of goods is 15-60 days and the Group has financial risk management policies in place to ensure that all payables are paid within the pre-agreed credit terms; therefore, no interest is charged on the accounts payable.

OTHER PAYABLES

	December 31
	2025	2024
Payable for compensation of employees and remuneration of directors	$ 35,140	$ 55,040
Payable for salaries and bonuses	28,580	36,197
Payable for utilities expenses	7,194	5,788
Payable for annual leave	5,387	5,451
Others	16,451	15,421
	$ 92,752	$ 117,897

RETIREMENT BENEFIT PLANS

a. Defined contribution plans

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

2) The Group's foreign subsidiary, Thye Ming (Vietnam) Co., Ltd., makes pension contributions to a defined contribution plan under the local laws.

b. Defined benefit plans

The defined benefit plans adopted by the Company and its domestic subsidiary in accordance with the Labor Standards Act is operated by the government of the ROC. Pension benefits are calculated on the basis of the length of service and average monthly salaries of the 6 months before retirement. The Company and its domestic subsidiary contribute amounts equal to certain percentage of total monthly salaries and wages to a pension fund administered by the pension fund monitoring committee. Pension contributions are deposited in the Bank of Taiwan in the committee's name. Before the end of each year, the Group assesses the balance in the pension fund. If the amount of the balance in the pension fund is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Group is required to fund the difference in one appropriation that should be made before the end of March of the next year. The pension fund is managed by the Bureau of Labor Funds, Ministry of Labor (the "Bureau"); the Group has no right to influence the investment policy and strategy. In addition, in June 2005, the Company reported to the National Taxation Bureau that the Company adopted a "Retirement Benefit and Retirement Scheme for Appointed Personnel" which stipulates the making of pension provisions at 4% of the monthly salary of the manager.

The amounts included in the consolidated balance sheets in respect of the Group's defined benefit plans were as follows:

	December 31
	2025	2024
Present value of defined benefit obligation	$ 67,924	$ 68,589
Fair value of plan assets	(56,458)	(58,046)
Net defined benefit liabilities	$ 11,466	$ 10,543

31 -

Movements in net defined benefit liabilities were as follows:

	Present Value of the Defined Benefit Obligation	Fair Value of the Plan Assets	Net Defined Benefit Liabilities
Balance on January 1, 2025	$ 68,589	$ (58,046)	$ 10,543
Service cost
Current service cost	83	-	83
Net interest expense (income)	910	(776)	134
Recognized in profit or loss	993	(776)	217
Remeasurement
Return on plan assets (excluding amounts included in net interest)	-	(4,285)	(4,285)
Actuarial loss - experience adjustments	6,670	-	6,670
Recognized in other comprehensive income	6,670	(4,285)	2,385
Contributions from the employer	-	(1,679)	(1,679)
Benefits paid
Contribution from plan assets	(8,328)	8,328	-
Balance on December 31, 2025	$ 67,924	$ (56,458)	$ 11,466
Balance on January 1, 2024	$ 72,574	$ (56,970)	$ 15,604
Service cost
Current service cost	100	-	100
Net interest expense (income)	902	(718)	184
Recognized in profit or loss	1,002	(718)	284
Remeasurement
Return on plan assets (excluding amounts included in net interest)	-	(5,423)	(5,423)
Actuarial loss - experience adjustments	1,853	-	1,853
Recognized in other comprehensive income	1,853	(5,423)	(3,570)
Contributions from the employer	-	(1,775)	(1,775)
Benefits paid
Contribution from plan assets	(6,840)	6,840	-
Balance on December 31, 2024	$ 68,589	$ (58,046)	$ 10,543

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

	For the Year Ended December 31
	2025	2024
Operating costs	$ 139	$ 228
Selling and marketing expenses	17	21
		(Continued)

For the Year Ended December 31
2025 2024

General and administrative expenses
$ 61 $ 35
$ 217 $ 284
(Concluded)

Through the defined benefit plans under the Labor Standards Law, the Group is exposed to the following risks:

1) Investment risk

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

2) Interest risk

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

3) Salary risk

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

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

	December 31
	2025	2024
Discount rate (%)	1.250	1.375
Expected rate of salary increase (%)	2.000	2.000

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

	December 31
	2025	2024
Discount rate
0.25% increase	$ (896)	$ (1,010)
0.25% decrease	$ 920	$ 1,037
Expected rate of salary increase
0.25% increase	$ 898	$ 1,013
0.25% decrease	$ (879)	$ (991)

33 -

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

	December 31
	2025	2024
Expected contributions to the plan for the next year	$ 1,740	$ 1,740
Average duration of the defined benefit obligation	4.3 years-5.5 years	4.1 years-6.1 years

20. EQUITY

a. Share capital

Ordinary shares

	December 31
	2025	2024
Shares authorized (in thousands of shares)	310,000	310,000
Shares authorized (in thousands of dollars)	$ 3,100,000	$ 3,100,000
Shares issued and fully paid (in thousands of shares)	120,000	167,319
Shares issued and fully paid (in thousands of dollars)	$ 1,200,000	$ 1,673,185

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

In order to optimize the capital structure and enhance the return on shareholders' equity, the Company's shareholders' meeting held in June 2025 resolved to approve a cash capital reduction, cancelling $473,185 thousand ordinary share capital. The capital reduction proposal was subsequently approved by the competent authority, with the record date being September 15, 2025. The change of registration was completed on October 14, 2025. After the capital reduction, the Company's paid-in capital was $1,200,000 thousand.

b. Capital surplus

	December 31
	2025	2024
Conversion of bonds	$ 975,330	$ 975,330

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

c. Retained earnings and dividend policy

Under the dividend policy in the Company's Articles of Incorporation (the "Articles"), where the Company 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 (except that when legal

reserve has reached the Company's paid-in capital, the Company may continue or stop to set aside amount for legal reserve), setting aside or reversing a special reserve in accordance with the laws and regulations, and then any remaining profit together with any undistributed retained earnings shall be used by the Company's board of directors as the basis for proposing a distribution plan. Distribution of dividends and bonuses by issuing new shares, in whole or in part, should be resolved in the shareholders' meeting for distribution of stock dividends and bonuses to shareholders. For the policies on the distribution of compensation of employees and remuneration of directors after the amendment, refer to compensation of employees and remuneration of directors in Note 22-h.

The board of directors of the Company is authorized to distribute dividends and either bonuses in cash, legal reserve, or capital surplus, in whole or in part, by majority vote of the directors present at a meeting of the board of directors attended by two-thirds of the total number of directors. A report of such distribution should be submitted to the shareholders' meeting.

The Company is in a stable growth stage in line with the overall environment and the characteristics of the industry's growth. In planning to distribute earnings, the Company shall consider the needs for sustainable operation and long-term development and the needs of shareholders for cash inflows; if there will be distribution of earnings, the distribution shall not be less than 20% of the net profit after tax for the year, and the cash dividend shall not be less than 10% of the total cash and stock dividends distributed.

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

When a special reserve is appropriated for cumulative net debit balance reserves from prior period, the sum of net profit for current period and items other than net profit included directly in the unappropriated earnings for current period is used if the prior unappropriated earnings are not sufficient. On the first-time adoption of IFRS Accounting Standards, the Company appropriated $42,065 thousand to the special reserve for the increase in retained earnings in the conversion to IFRS Accounting Standards.

The appropriations of earnings for 2024 and 2023, which were resolved in the shareholders' meetings in June 2025 and June 2024, respectively, were as follows:

	Appropriation of Earnings		Dividends Per Share (NT$)
	For the Year Ended December 31		For the Year Ended December 31
	2024	2023	2024	2023
Legal reserve	$ 105,519	$ 99,245
Special reserve	(37,905)	33,776
Cash dividends	1,003,911	861,690	$ 6.0	$ 5.15
	$ 1,071,525	$ 994,711

The appropriations of earnings for 2025 proposed by the Company's board of directors on March 13, 2026, were as follows:

	Appropriation of Earnings	Dividends Per Share (NT$)
Special reserve	$ 127,369
Cash dividends	600,000	$ 5.0
	$ 727,369

The above appropriation for cash dividends had been resolved by the Company's board of directors. The other proposed appropriations will be resolved by the shareholders in their meeting to be held in June 2026.

d. Other equity items

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

	For the Year Ended December 31
	2025	2024
Balance on January 1	$ (368,413)	$ (399,361)
Exchange differences on translation of the financial statements of foreign operations	(130,548)	30,948
Balance on December 31	$ (498,961)	$ (368,413)

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

	For the Year Ended December 31
	2025	2024
Balance on January 1	$ 29,123	$ 22,166
Recognized for the year
Unrealized gain (loss) - equity instruments	3,179	6,957
Balance on December 31	$ 32,302	$ 29,123

e. Non-controlling interests

	For the Year Ended December 31
	2025	2024
Balance on January 1	$ 27,377	$ 27,697
Share in profit for the year	3,322	2,722
Dividends distributed by subsidiaries	(2,520)	(3,000)
Other comprehensive income (loss) during the year
Unrealized gain (loss) on financial assets at FVTOCI	150	(30)
Remeasurement on defined benefit plans	21	(12)
Balance on December 31	$ 28,350	$ 27,377

OPERATING REVENUE

	For the Year Ended December 31
	2025	2024
Revenue from contracts with customers
Revenue from sale of goods	$ 8,003,693	$ 8,499,642
Revenue from the rendering of services	44,466	53,915
	$ 8,048,159	$ 8,553,557

a. Contract balances

	December 31		January 1
	2025	2024	2024
Notes and accounts receivable	$ 1,097,264	$ 1,016,356	$ 1,043,306
Contract liabilities
Sale of goods	$ 25,323	$ 18,375	$ 27,621

The changes in the balance of contract liabilities primarily result from the timing difference between the Group's satisfaction of performance obligation and the respective customer's payment. Revenue of the reporting year recognized from the beginning contract liabilities for the year ended December 31, 2025 and 2024 was $18,375 thousand and $27,621 thousand, respectively.

b. For the breakdown of revenue from contracts with customers, refer to revenue from major products and services in Note 32-c.

22. PROFIT BEFORE INCOME TAX

Profit before income tax included the following items:

a. Interest income

	For the Year Ended December 31
	2025	2024
Bank deposits	$ 82,405	$ 103,057
Others	21	31
	$ 82,426	$ 103,088

b. Other income

	For the Year Ended December 31
	2025	2024
Rental income (Note 15)	$ 6,868	$ 5,356
Dividends	29,200	21,700
Fund's dividends	2,716	1,538
Others	1,367	1,006
	$ 40,151	$ 29,600

c. Other gains and losses

	For the Year Ended December 31
	2025	2024
Gain on disposal of property, plant and equipment	$ 1,536	$ 671
Reversal of impairment loss	6,518	-
Net foreign exchange gains (losses)	(74,223)	187,938
Gain on financial assets mandatorily at FVTPL, net	24,361	43,052
Other losses	(512)	(546)
	$ (42,320)	$ 231,115

d. Finance costs

	For the Year Ended December 31
	2025	2024
Interest expense of borrowings	$ 64	$ 1,270
Interest on lease liabilities	40	16
Less: Amounts included in the cost of qualifying assets	(35)	(37)
	$ 69	$ 1,249
Information about capitalized interest is as follows:
	For the Year Ended December 31
	2025	2024
Capitalized interest	$ 35	$ 37
Capitalization rate (%)	0.93	0.88
e. Depreciation and amortization
	For the Year Ended December 31
	2025	2024
Property, plant and equipment	$ 64,604	$ 69,672
Right-of-use assets	1,406	1,889
Investment properties	491	493
Computer software	683	103
Other non-current assets	142	426
	$ 67,326	$ 72,583
An analysis of depreciation by function
Operating costs	$ 57,975	$ 63,134
Operating expenses	8,035	8,427
Non-operating expenses	491	493
	$ 66,501	$ 72,054
An analysis of amortization by function
Operating expenses	$ 825	$ 529
f. Expenses directly related to investment properties
	For the Year Ended December 31
	2025	2024
Direct operating expenses of investment properties generating rental income	$ 817	$ 649
Direct operating expenses of investment properties not generating rental income	$ -	$ 170

g. Employee benefits expense

	For the Year Ended December 31
	2025	2024
Short-term employee benefits	$ 191,805	$ 228,496
Post-employment benefits
Defined contribution plans	6,910	7,339
Defined benefit plans (Note 19)	217	284
Long-term employee benefits	(2,017)	96
	$ 196,915	$ 236,215
An analysis of employee benefits expense by function
Operating costs	$ 99,400	$ 114,581
Operating expenses	97,515	121,634
	$ 196,915	$ 236,215

h. Compensation of employees and remuneration of directors

According to the Company's Articles, the Company accrued compensation of employees and remuneration of directors at rates of no less than 1% and no higher than 3%, respectively, of net profit before income tax, compensation of employees and remuneration of directors. In accordance with the amendments to the Securities and Exchange Act in August 2024, the shareholders of the Company resolved the amendments to the Company's Articles at their 2025 regular meeting. The amendments explicitly stipulate the allocation of 70% of the compensation of employees as compensation distributions for non-executive employees. The employees' compensation and remuneration of directors for the years ended December 31, 2025 and 2024, which were approved to be paid in cash by the Company's board of directors on March 13, 2026 and March 12, 2025, respectively, consistent with the amount in the financial statements are as follows:

	For the Year Ended December 31
	2025	2024
Estimation ratio
Compensation of employees (%)	1	1
Remuneration of directors (%)	3	3
Amount
Compensation of employees	$ 9,478	$ 15,115
Remuneration of directors	24,320	38,770

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

There is no difference between the actual amounts of compensation of employees and remuneration of directors paid and the amounts recognized in the consolidated financial statements for the year ended December 31, 2024 and 2023.

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

i. Gains or losses on foreign currency exchange

	For the Year Ended December 31
	2025	2024
Foreign exchange gains	$ 190,947	$ 265,019
Foreign exchange losses	(265,170)	(77,081)
Net gains (losses)	$ (74,223)	$ 187,938

23. INCOME TAX

a. Income tax recognized in profit or loss

Major components of income tax expense are as follows:

	For the Year Ended December 31
	2025	2024
Current tax
In respect of the current year	$ 194,431	$ 263,851
Adjustments for prior years	(4,358)	(9,809)
	190,073	254,042
Deferred tax
In respect of the current year	1,587	16,292
	$ 191,660	$ 270,334

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

	For the Year Ended December 31
	2025	2024
Profit before tax from continuing operations	$ 847,936	$ 1,325,374
Income tax expense calculated at the statutory rate	$ 169,554	$ 264,979
Nondeductible expenses (deductible gains) in determining taxable income	356	(12,876)
Deferred tax effect of earnings of subsidiaries	26,108	28,040
Adjustments for prior years	(4,358)	(9,809)
	$ 191,660	$ 270,334

The income tax rate applicable to the Group's foreign subsidiary, Thye Ming (Vietnam), is 20%.

b. Income tax recognized in other comprehensive income

	For the Year Ended December 31
	2025	2024
Deferred tax gain (expense)
In respect of the current year
Remeasurement of defined benefit plans	$ 477	$ (714)

c. Current tax assets and liabilities

	December 31
	2025	2024
Current tax liabilities
Income tax payable	$ 162,471	$ 111,533

d. Deferred tax assets and liabilities

The movements of deferred tax assets and liabilities were as follows:

For the year ended December 31, 2025

	Opening Balance	Recognized in Profit or Loss	Recognized in Other Comprehensive Income	Closing Balance
Deferred tax assets
Temporary differences
Unrealized loss on inventories	$ 284	$ 100	$ -	$ 384
Provisions	855	(403)	-	452
Net defined benefit liabilities	4,256	(11)	477	4,722
Payable for annual leave	1,090	(13)	-	1,077
Others	797	790	-	1,587
	$ 7,282	$ 463	$ 477	$ 8,222
Deferred tax liabilities
Temporary differences
Foreign investment income recognized under the equity method	$ 223,418	$ 2,058	$ -	$ 225,476
Reserve for land revaluation increment tax	46,669	-	-	46,669
Others	6,899	(8)	-	6,891
	$ 276,986	$ 2,050	$ -	$ 279,036
For the year ended December 31, 2024
	Opening Balance	Recognized in Profit or Loss	Recognized in Other Comprehensive Income	Closing Balance
Deferred tax assets
Temporary differences
Unrealized loss on inventories	$ 1,920	$ (1,636)	$ -	$ 284
Provisions	836	19	-	855
Net defined benefit liabilities	4,982	(12)	(714)	4,256
Payable for annual leave	1,115	(25)	-	1,090
Others	15,686	(14,889)	-	797
	$ 24,539	$ (16,543)	$ (714)	$ 7,282
				(Continued)

42 -

	Opening Balance	Recognized in Profit or Loss	Recognized in Other Comprehensive Income	Closing Balance
Deferred tax liabilities
Temporary differences
Foreign investment income recognized under the equity method	$ 228,003	$ (4,585)	$ -	$ 223,418
Reserve for land revaluation increment tax	46,669	-	-	46,669
Others	2,565	4,334	-	6,899
	$ 277,237	$ (251)	$ -	$ 276,986 (Concluded)

e. Income tax assessments

The income tax returns of the Company and its subsidiary, Thai Wey Co., Ltd., through 2023 have been assessed by the tax authorities.

24. EARNINGS PER SHARE

The numerator and denominator of the earnings per share calculation were as follows:

a. Numerator - Net profit for the year

	For the Year Ended December 31
	2025	2024
Net profit attributable to owners of the Company	$ 652,954	$ 1,052,318

b. Denominator - Number of ordinary shares (in thousands of shares)

	For the Year Ended December 31
	2025	2024
Number of ordinary shares issued at the beginning of the year	153,317	167,319
Add: Effect of potentially dilutive ordinary shares
Compensation of employees	180	278
Number of shares used in the computation of diluted earnings per share	153,497	167,597

The Company may settle the compensation of employees in cash or shares; therefore, the Group assumes that the entire amount of the compensation will be settled in shares. If the shares are dilutive, the resulting potential shares are included in the weighted average number of shares outstanding used in the computation of diluted earnings per share. The number of potential shares of the compensation of employees is calculated by dividing the amount of the compensation by the closing price per share of the ordinary shares on the balance sheet date. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the shareholders resolve the number of shares to be distributed to employees at their meeting in the following year.

43 -

25. CAPITAL MANAGEMENT

The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximizing the return to shareholders through the optimization of the debt and equity balance.

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

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

26. FINANCIAL INSTRUMENTS

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

The carrying amounts of financial assets and financial liabilities that are not measured at fair value approximate their fair values.

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

1) Fair value hierarchy

December 31, 2025

	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Fund beneficiary certificate	$ 977,600	$ -	$ -	$ 977,600
Financial assets at FVTOCI
Investments in equity instruments
Domestic listed shares	$ 97,700	$ -	$ -	$ 97,700
Domestic unlisted shares	-	-	84,464	84,464
	$ 97,700	$ -	$ 84,464	$ 182,164
December 31, 2024
	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Fund beneficiary certificate	$ 1,111,126	$ -	$ -	$ 1,111,126
Financial assets at FVTOCI
Investments in equity instruments
Domestic listed shares	$ 95,200	$ -	$ -	$ 95,200
Domestic unlisted shares	-	-	83,635	83,635
	$ 95,200	$ -	$ 83,635	$ 178,835

There were no transfers between Level 1 and Level 2 in the current and prior years.

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

	For the Year Ended December 31
	2025	2024
Financial assets at FVTOCI
Balance, beginning of the year	$ 83,635	$ 76,208
Gain recognized in other comprehensive income	829	7,427
Balance, end of the year	$ 84,464	$ 83,635

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

The fair values of domestic unlisted shares in the consolidated financial statements were determined by reference to the most recent net value of those investee companies.

c. Categories of financial instruments

	December 31
	2025	2024
Financial assets
Financial assets at FVTPL
Mandatorily classified as at FVTPL	$ 977,600	$ 1,111,126
Financial assets at FVTOCI	182,164	178,835
Financial assets at amortized cost (Note 1)	2,693,988	3,820,118
Financial liabilities
Financial liabilities at amortized cost (Note 2)	227,355	337,024

Note 1: The balances include financial assets at amortized cost, which comprise cash and cash equivalents, financial assets at amortized cost, notes and accounts receivable, other receivables and refundable deposits.

Note 2: The balances include financial liabilities at amortized cost, which comprise short-term borrowings, notes and accounts payable, other payables, and deposits received.

d. Financial risk management objectives and policies

The Group's major financial instruments include cash and cash equivalents, notes and accounts receivable, other receivables, refundable deposits, financial assets at amortized cost, short-term borrowings, notes and accounts payable, other payables, lease liabilities and deposits received. The Group's corporate treasury function provides services to the business, coordinates access to financial markets, monitors and manages the financial risks relating to the operations of the Group by analyzing exposures by degree and magnitude of risks. These risks include market risk (including foreign currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

45 -

1) Market risk

The Group’s activities exposed it primarily to the financial risks of changes in foreign currency exchange rates (see (a) below) and interest rates (see (b) below).

a) Foreign currency risk

The Group has foreign currency denominated sales and purchases, which exposed the Group to foreign currency risk.

The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities (including those eliminated on consolidation) exposed to foreign currency risk at the end of the reporting period are set out in Note 30.

Sensitivity analysis

The Group is mainly exposed to the USD.

The following table details the Company’s sensitivity to a 1% increase and decrease in New Taiwan dollars (the functional currency) against the relevant foreign currencies. The sensitivity rate used when reporting foreign currency risk internally to key management personnel and representing management’s assessment of the reasonably possible change in foreign exchange rates is 1%. The sensitivity analysis included only outstanding foreign currency denominated monetary items and adjusts their translation at the end of the reporting period for a 1% change in foreign currency rates. The positive amounts below indicate an increase in pre-tax profit associated with the functional currency weakening 1% against USD. For a 1% strengthening of the functional currency against the USD, there would be an equal and opposite impact on pre-tax profit, and the balances below would be negative.

USD Impact
For the Year Ended December 31
	2025	2024
Profit or loss	$ 13,248	$ 21,449

b) Interest rate risk

The Group is exposed to interest rate risk because entities in the Group borrowed funds at both fixed and floating interest rates. The risk is managed by the Group by maintaining an appropriate mix of fixed and floating rate borrowings.

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

December 31
	2025	2024
Cash flow interest rate risk
Financial assets	$ 560,286	$ 869,295

Sensitivity analysis

The sensitivity analysis below was determined based on the Group’s exposure to interest rates for non-derivative instruments at the end of the year. For floating rate liabilities, the analysis was prepared assuming the amount of each liability outstanding at the end of the year was outstanding for the whole year. A 1% increase or decrease is used when reporting interest rate

risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

If interest rates had been 1% higher/lower and all other variables were held constant, the Group’s pre-tax profit for the years ended December 31, 2025 and 2024 would have increased/decreased by $5,603 thousand and $8,693 thousand, respectively, which was mainly a result of variable rate bank deposits and borrowings.

c) Other price risk

The Group was exposed to equity price risk through its investments in fund beneficiary certificate and listed equity shares. Equity investments are held for strategic rather than for trading purposes; thus, the Group does not actively trade these investments. The Group’s equity price risk is mainly concentrated in equity instruments traded in the Taiwan Stock Exchange and Open Fund Beneficiary Certificate trading in Taiwan.

Sensitivity analysis

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

If equity prices had been 1% higher/lower, pre-tax profit for the years ended December 31, 2025 and 2024 would have increased/decreased by $9,776 thousand and $11,111 thousand, respectively, as a result of the changes in fair value of financial assets at FVTPL.

If equity prices had been 1% higher/lower, the other comprehensive income for the years ended December 31, 2025 and 2024 would have increased/decreased by $1,822 thousand and $1,788 thousand, respectively, as a result of the changes in fair value of financial assets at FVTOCI.

2) Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Group. At the end of the year, the Group’s maximum exposure to credit risk, which would cause a financial loss to the Group due to the failure of the counterparty to discharge its obligation and due to the financial guarantees provided by the Group, could be equal to the carrying amount of the respective recognized financial assets as stated in the consolidated balance sheets.

For information about the policy of credit risk, refer to Note 10.

The Group’s credit risk was mainly concentrated in the following groups accounted for accounts receivable:

	December 31
	2025	2024
Company A	$ 595,056	$ 599,309
Company B	107,094	100,428
	$ 702,150	$ 699,737
Percentage of total accounts receivable (%)	64	69

3) Liquidity risk

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

The Group relies on bank borrowings as a significant source of liquidity. As of December 31, 2025 and 2024, the Group had available unutilized short-term bank loan facilities of $3,406,760 thousand and $3,426,240 thousand, respectively.

The following table details the Group’s remaining contractual maturities for its non-derivative financial liabilities with agreed upon repayment periods. The tables had been drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Group can be required to pay. The tables include both interest and principal cash flows. Specifically, bank loans with a repayment on demand clause were included in the earliest time band regardless of the probability of the banks choosing to exercise their rights. The maturity dates for other non-derivative financial liabilities were based on the agreed upon repayment dates.

	Less than 3 Months	3 Months to 1 Year	More than 1 year	Total
December 31, 2025
Non-interest bearing liabilities	$ 191,305	$ 35,140	$ 910	$ 227,355
Lease liabilities	382	1,147	2,421	3,950
	$ 191,687	$ 36,287	$ 3,331	$ 231,305
December 31, 2024
Non-interest bearing liabilities	$ 246,074	$ 55,040	$ 910	$ 302,024
Lease liabilities	413	-	-	413
Fixed interest rate liabilities	-	35,056	-	35,056
	$ 246,487	$ 90,096	$ 910	$ 337,493

TRANSACTIONS WITH RELATED PARTIES

Besides information disclosed elsewhere in the other notes, details of transactions between the Group and other related parties are disclosed as follows:

a. Related party name and its relationship with the Group

Related Party Name	Relationship with the Group
Jet Rate Trading Co., Ltd.	Related party in substance (The chairman of the related party is the general manager of the Company)
(Continued)

Related Party Name

Relationship with the Group

Tai Yeh Co., Ltd.

Related party in substance (The chairman of the related party is the representative of the corporate director of the Company)

(Concluded)

b. Revenue from sales of goods

	For the Year Ended December 31
	2025	2024
Related party in substance	$ 6,033	$ 8,388

The terms of the sale of goods to related parties and to others have no significant difference. The collection term is 60 days from the end of the month.

c. Purchase of goods

	For the Year Ended December 31
	2025	2024
Related party in substance	$ 7,808	$ 7,092

The products purchased from related parties were not available from non-related parties, so the purchase prices were not comparable. There is no significant difference between the payment terms and general manufacturers.

d. Other income

The Company leased to its related party in substance, Tai Yeh Co., Ltd., a site for use as a factory building. The lease period is until October 2032, and the rental income was $4,005 thousand and $3,780 thousand, respectively, for the years ended December 31, 2025 and 2024, refer to Note 15.

e. Receivables and payables

Account Item	December 31
	2025	2024
Accounts receivable
Related parties in substance	$ 420	$ 466
Accounts payable
Related parties in substance	$ 2,487	$ -

f. Remuneration of key management personnel

The remuneration of key management personnel for the years ended December 31, 2025 and 2024 was as follows:

For the Year Ended December 31
2025 2024

Short-term employee benefits $ 52,308 $ 71,840
Post-employment benefits 69 69
Long-term employee benefits 8 8
$ 52,385 $ 71,917

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

28. ASSETS PLEDGED AS COLLATERAL OR SECURITY

The following assets were provided deposits for customs tax and supply of natural gas:

	December 31
	2025	2024
Pledged deposits (under other financial assets - non-current)	$ 13,100	$ 13,100

29. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

The Group’s unrecognized commitments were as follows:

	December 31
	2025	2024
Acquisition of property, plant and equipment	$ 13,073	$ 17,914

30. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The Group’s significant financial assets and liabilities denominated in foreign currencies aggregated by the foreign currencies other than functional currencies of the entities in the Group and the related exchange rates between the foreign currencies and the respective functional currencies were as follows:

	Foreign Currency (In Thousands)	Exchange Rate		Carrying Amount (In Thousands)
December 31, 2025
Financial assets
Monetary items
USD	$ 41,283	31.419	(USD:NTD)	$ 1,297,080
JPY	28,160	0.2007	(JPY:NTD)	5,652
USD	883	26,224	(USD:VND)	27,740
				(Continued)

50 -

Foreign Currency (In Thousands)	Exchange Rate	Carrying Amount (In Thousands)
December 31, 2024
Financial assets
Monetary items
USD	$ 64,507	32.781 (USD:NTD)
JPY	10,634	0.2098 (JPY:NTD)
USD	923	25,376 (USD:VND)
		$ 2,114,605
		2,231
		30,272
		(Concluded)

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

Foreign Currency	Exchange Rate	Net Foreign Exchange Gains (Losses)
December 31, 2025
USD	31.184 (USD:NTD)	$ (70,234)
JPY	0.2084 (JPY:NTD)	892
USD	25,967 (USD:VND)	(4,881)
		$ (74,223)
December 31, 2024
USD	32.111 (USD:NTD)	$ 185,732
JPY	0.2120 (JPY:NTD)	160
USD	25,004 (USD:VND)	2,046
		$ 187,938

31. SEPARATELY DISCLOSED ITEMS

Matters required to be disclosed in 2025 are as follows:

a. Information about significant transactions and investees

1) Financing provided to others: None
2) Endorsements/guarantees provided: None.
3) Significant marketable securities held (excluding investments in subsidiaries): Table 1.
4) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital: Table 2.
5) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: None.
6) Others: Intercompany relationships and significant intercompany transactions: Table 4.

7) Information on investees: Table 3.

b. Information on investments in Mainland China

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

Any of the following significant transactions with investee companies in Mainland China, either directly or indirectly through a third area, and their prices, payment terms, and unrealized gains or losses:

1) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the year: None.

2) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the year: None.

3) The amount of property transactions and the amount of the resultant gains or losses: None.

4) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the year and the purposes: None.

5) The highest balance, the ending balance, the interest rate range, and total current year interest with respect to financing of funds: None.

6) Other transactions that have a material effect on the profit or loss for the year or on the financial position, such as the rendering or receipt of services: None.

SEGMENT INFORMATION

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

The Company and its subsidiary Thai Wey (“Thye Ming”) - antimony lead alloy, calcium lead alloy, litharge and red lead manufacturing and selling. Providing general business waste recycling and regeneration services.
Thye Ming Industrial (Samoa), Taiming Corp. (Samoa) and Thye Ming (Vietnam) Co., Ltd (“Thye Ming (Vietnam)”) - antimony lead alloy, calcium lead alloy, litharge and red lead manufacturing and selling.

a. Segment revenue and results

The following was an analysis of the Group’s revenue, results from operations, segment assets and liabilities by reportable segments:

51 -

	Thye Ming	Thye Ming(Vietnam)	Adjustment and Elimination	Consolidated Amount
For the year ended December 31, 2025
Revenue from external customers	$ 4,905,466	$ 3,142,693	$ -	$ 8,048,159
Segment income	$ 610,278	$ 153,405	$ 4,065	$ 767,748
Interest income				82,426
Other income				40,151
Other gains and losses				(42,320)
Finance costs				(69)
Consolidated profit before income tax				847,936
Income tax				(191,660)
Consolidated net income				$ 656,276
Identifiable asserts	$ 3,528,733	$ 1,669,345	$ -	$ 5,198,078
Financial assets at FVTPL	977,600	-	-	977,600
Financial assets at FVTOCI	182,164	-	-	182,164
Total assets	$ 4,688,497	$ 1,669,345	$ -	$ 6,357,842
Total liabilities	$ 642,038	$ 70,431	$ -	$ 712,469
For the year ended December 31, 2024
Revenue from external customers	$ 5,769,265	$ 2,784,292	$ -	$ 8,553,557
Inter-segment revenue	4,872	6,229	(11,101)	-
Segment revenue	$ 5,774,137	$ 2,790,521	$ (11,101)	$ 8,553,557
Segment income	$ 801,515	$ 157,181	$ 4,124	$ 962,820
Interest income				103,088
Other income				29,600
Other gains and losses				231,115
Finance costs				(1,249)
Consolidated profit before income tax				1,325,374
Income tax				(270,334)
Consolidated net income				$ 1,055,040
Identifiable asserts	$ 4,281,526	$ 1,786,550	$ (316)	$ 6,067,760
Financial assets at FVTPL	1,111,126	-	-	1,111,126
Financial assets at FVTOCI	178,835	-	-	178,835
Total assets	$ 5,571,487	$ 1,786,550	$ (316)	$ 7,357,721
Total liabilities	$ 692,505	$ 67,376	$ -	$ 759,881

Segment profit represents the profit before tax earned by each segment without interest income, other income, other gains and losses, finance costs and income tax expense. This was the measure reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance.

b. Other segment information

	Depreciation and Amortization		Non-current Assets Acquired (Disposed) During the Year
	For the Year Ended December 31		For the Year Ended December 31
	2025	2024	2025	2024
Thye Ming	$ 53,266	$ 56,536	$ 73,648	$ 56,375
Thye Ming (Vietnam)	14,060	16,047	14,513	5,259
	$ 67,326	$ 72,583	$ 88,161	$ 61,634

Non-current assets exclude financial assets and deferred income tax assets.

c. Revenue from major products and services

The following is an analysis of the Group's revenue from its major product and services:

For the year ended December 31, 2025

	Reportable Segments
	Thye Ming Industrial Co., Ltd.	Thye Ming Industrial (Vietnam)	Total
Sale of goods
Lead alloy ingots	$ 3,735,609	$ 3,064,680	$ 6,800,289
Lead ingots	555,513	-	555,513
Litharge and red lead	525,309	66,327	591,636
Others	55,485	770	56,255
	4,871,916	3,131,777	8,003,693
Rendering of services	33,550	10,916	44,466
	$ 4,905,466	$ 3,142,693	$ 8,048,159

For the year ended December 31, 2024

	Reportable Segments
	Thye Ming Industrial Co., Ltd.	Thye Ming Industrial (Vietnam)	Total
Sale of goods
Lead alloy ingots	$ 4,542,403	$ 2,728,293	$ 7,270,696
Lead ingots	603,339	-	603,339
Litharge and red lead	529,142	43,498	572,640
Others	52,088	879	52,967
	5,726,972	2,772,670	8,499,642
Rendering of services	42,293	11,622	53,915
	$ 5,769,265	$ 2,784,292	$ 8,553,557

d. Geographical information

The Group operates in two principal geographical areas - Taiwan and Vietnam.

The Group’s revenue from continuing operations from external customers by location of operations and information about its non-current assets by location of assets are detailed below:

	Revenue from External Customers		Non-current Assets
	For the Year Ended December 31		December 31
	2025	2024	2025	2024
Taiwan	$ 3,679,692	$ 3,765,979	$ 672,549	$ 652,166
Southeast Asia	3,797,559	3,701,827	92,040	91,588
Japan	506,927	629,033	-	-
Others	63,981	456,718	-	-
	$ 8,048,159	$ 8,553,557	$ 764,589	$ 743,754

Non-current assets exclude financial assets and deferred income tax assets.

e. Information about major customers

Single customers who contributed 10% or more to the Group’s consolidated operating revenue in 2025 and 2024 were as follows:

	2025		2024
	Amount	Percentage of Operating Revenue (%)	Amount	Percentage of Operating Revenue (%)
Customer A	$ 1,975,151	25	$ 2,109,530	25
Customer B	1,054,013	13	1,021,965	12
	$ 3,029,164	38	$ 3,131,495	37

TABLE 1

Thye Ming Industrial Co., Ltd. and Subsidiaries

SIGNIFICANT MARKETABLE SECURITIES HELD

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Holding Company Name	Type and Name of Marketable Securities	Financial Statement Account	December 31, 2025
			Shares or Units	Carrying Amount	Percentage of Ownership	Fair Value
The Company	Stock
	Super Telecom Co., Ltd.	Financial assets at FVTPL	858,000	$ -		$ -
	Gyrostate Corp	Financial assets at FVTPL	350,000	-		-
	Beneficiary certificate
	JPMorgan (Taiwan) Multi Income Fund of Funds - Monthly Distribution Class	Financial assets at FVTPL	505,000	4,194		4,194
	Franklin Income Fund A (Mdis)USD	Financial assets at FVTPL	49,911	15,368		15,368
	Franklin U.S. Dollar Short-Term Money Market Fund A (Mdis) USD	Financial assets at FVTPL	203,459	62,838		62,838
	Cathay US Premium Bond Fund USD A	Financial assets at FVTPL	10,000	3,697		3,697
	Cathay 4-Year Maturity Developed Market Investment Grade Bond Fund USD-A	Financial assets at FVTPL	15,000	5,508		5,508
	Cathay 3-Year Maturity Global Market Investment Grade Bond Fund A USD	Financial assets at FVTPL	15,000	5,317		5,317
	Franklin Templeton SinoAm Select Non-Investment Grade Bond Fund-USD-A	Financial assets at FVTPL	9,999	3,472		3,472
	JPMorgan (Taiwan) U.S. High Income Fund (acc) - Class A USD	Financial assets at FVTPL	50,000	16,903		16,903
	Fubon Taiwan Quality Multi-Asset Fund	Financial assets at FVTPL	200,000	2,030		2,030
	UPAMC Quality Low Volatility Multi-Asset Fund-ACC	Financial assets at FVTPL	100,000	1,143		1,143
	Taishin Income Leading Multi-Asset Fund A TWD	Financial assets at FVTPL	100,000	1,168		1,168
	Fubon Dual-Core Strategy Multi-Asset Fund A USD	Financial assets at FVTPL	10,000	3,185		3,185
	TCB Global Hybrid Income Bond Fund A TWD	Financial assets at FVTPL	100,000	1,023		1,023
	Taishin 1699 Money Market Fund	Financial assets at FVTPL	3,832,445	55,070		55,070
	Fubon Money Market Fund	Financial assets at FVTPL	25,878,787	406,522		406,522
	Franklin Templeton Sinoam Money Market Fund	Financial assets at FVTPL	32,763,119	358,722		358,722
				$ 946,160		$ 946,160

(Continued)

Holding Company Name	Type and Name of Marketable Securities	Financial Statement Account	December 31, 2025
			Shares or Units	Carrying Amount	Percentage of Ownership	Fair Value
Thai Wey Industrial Co., Ltd.	Bonds	Financial assets at amortized cost - non-current	5,000	$ 15,855		$ 15,855
	Cathay Life Insurance 113th Year, Second Issue of Unsecured, Cumulative, Subordinated, Ordinary Corporate Bonds Denominated in U.S. Dollars.	Financial assets at amortized cost - non-current	5,000	15,369		15,369
	Cathay Life Insurance 112th Year, Third Issue of Unsecured, Cumulative, Subordinated, Ordinary Corporate Bonds Denominated in U.S. Dollars.			$ 31,224		$ 31,224
	Stock	Financial assets at FVTOCI - noncurrent	5,000,000	$ 84,464		$ 84,464
	Taiwan International Ports Logistics Corporation	Financial assets at FVTOCI - noncurrent	500,000	48,850		48,850
	Hotai Finance CO., Ltd.			$ 133,314		$ 133,314
Thai Wey Industrial Co., Ltd.	Beneficiary certificate	Financial assets at FVTPL	2,001,410	$ 31,440		$ 31,440
	Fubon Money Market Fund
	Stock	Financial assets at FVTOCI - non-current	500,000	$ 48,850		$ 48,850

(Concluded)

Note: The fair value of the investee is based on the equity value of the investee company at December 31, 2025.

TABLE 2

Thye Ming Industrial Co., Ltd. and Subsidiaries

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NTS100 MILLION OR 20% OF THE PAID-IN CAPITAL

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Buyer/Seller	Counterparty	Relationship	Transaction Detail				Abnormal Transaction		Notes/Accounts (Payable) Receivable		Note
			Purchase/Sale	Amount	% to Total	Payment Term	Unit Price	Payment Term	Ending Balance	% to Total
The Company	Thai Wey	Subsidiary	Purchase	$ 601,301	16	15 days after half-month closing	General price	No significant difference between the payment terms and the general manufacturers	$ (25,619)	(16)

Note: The transactions were eliminated when preparing consolidated financial statements.

TABLE 3

Thye Ming Industrial Co., Ltd. and Subsidiaries

INFORMATION ON INVESTEES

FOR THE YEAR ENDED DECEMBER 31, 2025

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

Investor Company	Investor Company	Location	Main Business and Product	Original Investment Amount		Balance as of December 31, 2025			Net Income (Loss) of the Investor	Share of profit (Loss)	Note
				December 31, 2025	December 31, 2024	Shares/ Unit	%	Carrying Amount
Thye Ming Industrial Co., Ltd.	Thai Wey Industrial Co., Ltd.	Taiwan	Trading and processing of metal ingots and alloy ingots, import and export trade and general waste disposal business	$ 90,790	$ 90,790	8,800,000	88.00	$ 207,528	$ 27,680	$ 24,286	Note 1
Thye Ming Industrial Co., Ltd.	Thye Ming Industrial (Samoa)	Samoa	Investment holding company	970,498	970,498	30,000,000	100.00	1,598,914	130,539	130,539	Note 2
Thye Ming Industrial (Samoa)	Taiming Corp.	Samoa	Investment holding company	970,498	970,498	30,000,000	100.00	1,598,912	130,539	130,539	Note 2
Taiming Corp.	Thye Ming (Vietnam) Co., Ltd.	Vietnam	Production of various lead-based products. Domestic waste lead storage batteries and plastic recycling and remaking	970,498	970,498	30,000,000	100.00	1,598,849	130,538	130,538	Notes 1 and 2

Note 1: The investment gain (loss) recognized in the current year included realized gain and loss on intercompany transactions.
Note 2: The original investment amount in each of Thye Ming Industrial (Samoa), Taiming Corp. and Thye Ming (Vietnam) Co., Ltd. was US$30,000 thousand.

TABLE 4

Thye Ming Industrial Co., Ltd. and Subsidiaries

INTERCOMPANY BUSINESS RELATIONSHIPS AND SIGNIFICANT TRANSACTIONS

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

No.	Company Name	Counterparty	Nature of Relationship	Intercompany Transactions
				Financial Statement Item	Amount	Terms	Percentage of Consolidated Total Gross Sales or Total Assets (%)
0	The Company	Thai Wey Industrial Co., Ltd.	Parent company to Subsidiary	Rental revenue	$ 600	According to the contract	0.01
0	The Company	Thai Wey Industrial Co., Ltd.	Parent company to Subsidiary	Other receivable	52	Rent receivable	-
0	The Company	Thye Ming (Vietnam) Co., Ltd.	Parent company to Subsidiary	Technical service revenue	3,749	According to the contract	0.05
1	Thai Wey Industrial Co., Ltd.	The Company	Subsidiary to parent company	Revenue from sale of goods	601,301	According to general transaction price, 15 days after half-month closing	7.47
1	Thai Wey Industrial Co., Ltd.	The Company	Subsidiary to parent company	Revenue from waste disposal	2,047	According to the contract	0.03
1	Thai Wey Industrial Co., Ltd.	The Company	Subsidiary to parent company	Accounts receivable	25,619	15 days after half-month closing	0.40

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TMI — Audit Report / Information 2025

52790_rns_2026-05-13_390c507a-fce8-45f7-ba4c-e992a517ffb8.pdf

Thye Ming Industrial Co., Ltd. and Subsidiaries

DECLARATION OF CONSOLIDATION FINANCIAL STATEMENTS OF AFFILIATES

INDEPENDENT AUDITORS' REPORT

Opinion

Basis for Opinion

Key Audit Matters

Occurrence of Sales Revenue from Specific Customers

Other Matter

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

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

Notice to Readers

Thye Ming Industrial Co., Ltd. and Subsidiaries

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

6. CASH AND CASH EQUIVALENTS

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

9. FINANCIAL ASSETS AT AMORTIZED COST

11. INVENTORIES

12. SUBSIDIARIES

13. PROPERTY, PLANT AND EQUIPMENT

14. LEASE ARRANGEMENTS

15. INVESTMENT PROPERTIES

16. SHORT-TERM BORROWINGS

17. NOTES PAYABLE AND ACCOUNTS PAYABLE

20. EQUITY

22. PROFIT BEFORE INCOME TAX

23. INCOME TAX

24. EARNINGS PER SHARE

25. CAPITAL MANAGEMENT

26. FINANCIAL INSTRUMENTS

28. ASSETS PLEDGED AS COLLATERAL OR SECURITY

29. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

30. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

31. SEPARATELY DISCLOSED ITEMS

Thye Ming Industrial Co., Ltd. and Subsidiaries

Thye Ming Industrial Co., Ltd. and Subsidiaries

Thye Ming Industrial Co., Ltd. and Subsidiaries

Thye Ming Industrial Co., Ltd. and Subsidiaries

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