TNC — Annual Report 2025

Apr 24, 2026

Taiwan Navigation Co., Ltd.

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

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INDEPENDENT AUDITORS’ REPORT

The Board of Directors and Shareholders Taiwan Navigation Co., Ltd.

Opinion

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

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

Basis for Opinion

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

Key Audit Matters

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

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The key audit matters identified in the parent company only financial statements of the Corporation for the year ended December 31, 2025 are stated as follows:

Recognition of Investments Accounted for Using the Equity Method from Floating Revenue of Bulk Carriers

The investments accounted for using the equity method of subsidiaries, Tai Shing Maritime Co., S.A. and Shin Wang Maritime Inc., are primarily engaged in bulk carrier transportation services and their floating bulk carriers revenue fluctuates with the shipping index based on agreements. Since the rental agreements of each ship are different and calculated manually, the risk of the accuracy of the recognition floating revenue of bulk carriers increases and affects the recognition of gain or loss of the Corporation’s investments using the equity method in the current year. Therefore, we considered the accuracy of the recognition of floating revenue of bulk carriers as key audit matters.

Our main audit procedures performed were as follows:

1. We obtained an understanding of the design and implementation of internal controls relevant to the recognition of floating revenue of bulk carriers.

2. We selected samples from the floating bulk carriers revenue ledger and reviewed relevant documents such as bulk carrier contracts, current account statements, bank statements, the record of remittances, etc.

3. We recalculated the floating revenue of bulk carriers and verified the accuracy of the recognized amount.

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

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

In preparing the parent company only financial statements, management is responsible for assessing the Corporation’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 Corporation 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 Corporation’s financial reporting process.

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

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

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

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

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

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

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

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

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

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements for the year ended December 31, 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.

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The engagement partners on the audits resulting in this independent auditors’ report are Ya-Ling Wong and You-Cheng Hsin.

Deloitte & Touche Taipei, Taiwan Republic of China March 9, 2026

Notice to Readers

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

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

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TAIWAN NAVIGATION CO., LTD.

PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars)

ASSETS CURRENT ASSETS Cash and cash equivalents (Notes 4, 6 and 23) Financial assets at fair value through other comprehensive income (Notes 4, 7 and 23) Accounts receivable, net (Notes 4, 8 and 16) Trade receivables from related parties (Notes 4, 8, 16 and 23) Net finance lease receivables from related parties (Notes 4, 9 and 16) Prepayments Other financial assets (Notes 4 and 23) Other current assets (Note 4) Total current assets NON-CURRENT ASSETS Financial assets at fair value through other comprehensive income (Notes 4 and 7) Investments accounted for using the equity method (Notes 4 and 10) Property, plant and equipment (Notes 4, 11 and 24) Investment properties (Notes 4 and 12) Intangible assets Deferred tax assets (Notes 4 and 18) Net finance lease receivables from related parties (Notes 4, 9 and 16) Other non-current assets (Notes 4, 23 and 24) Total non-current assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Notes 13, 20 and 23) Notes and accounts payable Other payables Current tax liabilities (Notes 4 and 18) Other current liabilities (Notes 4, 12 and 23) Total current liabilities NON-CURRENT LIABILITIES Deferred tax liabilities (Notes 4 and 18) Net defined benefit liabilities (Notes 4 and 14) Other non-current liabilities (Notes 12 and 23) Total non-current liabilities Total liabilities EQUITY (Notes 4, 15 and 23) Ordinary shares Capital surplus Retained earnings Legal reserve Unappropriated earnings Total retained earnings Other equity Total equity TOTAL		2025 Amount % $ 133,086 1 2,060,900 11 1,495 - 71,603 - 57,692 - 32,084 - 23,670 - 1,249 - 2,381,779 12 220,391 1 12,641,117 65 1,985,613 10 1,139,124 6 22,529 - 2,168 - 1,235,062 6 4,914 - 17,250,918 88 $ 19,632,697 100 $ 230,000 1 35,503 - 130,932 1 287,544 2 64,926 - 748,905 4 263,891 1 27,783 - 752,227 4 1,043,901 5 1,792,806 9 4,172,945 21 334,382 2 2,568,831 13 8,501,748 43 11,070,579 56 2,261,985 12 17,839,891 91 $ 19,632,697 100		2024
				Amount % $ 102,230 1 2,817,619 14 3,019 - 76,396 - 56,432 - 31,049 - 19,204 - 1,256 - 3,107,205 15 118,643 1 12,297,028 61 2,090,749 11 1,145,869 6 19,299 - 289 - 1,280,380 6 4,667 - 16,956,924 85 $ 20,064,129 100 $ 336,000 2 56,290 - 124,789 1 154,035 1 55,955 - 727,069 4 263,777 1 23,270 - 798,150 4 1,085,197 5 1,812,266 9 4,172,945 21 334,382 2 2,439,374 12 7,920,642 39 10,360,016 51 3,384,520 17 18,251,863 91 $ 20,064,129 100

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

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TAIWAN NAVIGATION CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

OPERATING REVENUE (Notes 4, 16 and 23) OPERATING COSTS (Notes 4, 17 and 23) GROSS PROFIT ADMINISTRATIVE EXPENSES (Notes 8 and 17) PROFIT FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES Share of profit of subsidiaries and associates (Notes 4 and 10) Interest income (Note 4) Dividend income (Notes 4, 7 and 23) Other income (Notes 17 and 23) Interest expense (Notes 4, 17 and 23) Other expenses (Note 23) Net gain (loss) on foreign currency exchange (Notes 4, 17 and 26) Total non-operating income and expenses INCOME BEFORE INCOME TAX INCOME TAX EXPENSE (Notes 4 and 18) NET PROFIT FOR THE YEAR OTHER COMPREHENSIVE INCOME (LOSS) (Note 4) Items that will not be reclassified subsequently to profit or loss: Remeasurement of defined benefit plans (Note 14) Unrealized gain (loss) on investments in equity instruments at fair value through other comprehensive income Share of the other comprehensive income (loss) of associates accounted for using the equity method (Note 10)		2025 Amount % $ 851,835 100 513,606 60 338,229 40 200,245 24 137,984 16 1,120,473 132 2,022 - 279,288 33 116,442 14 (4,746) (1) (1,870) - (29,715) (4) 1,481,894 174 1,619,878 190 294,230 34 1,325,648 156 (3,831) (1) (638,081) (75) 4,831 1		2024
				Amount % $ 821,094 100 559,118 68 261,976 32 172,942 21 89,034 11 1,202,562 146 1,386 - 75,313 9 98,154 12 (3,307) - (3,119) - 1,311 - 1,372,300 167 1,461,334 178 178,100 22 1,283,234 156 2,054 - 946,409 115 (13,508) (1) (Continued)

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TAIWAN NAVIGATION CO., LTD.

STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

Items that may be reclassified subsequently to profit or loss: Share of the other comprehensive income (loss) of subsidiaries and associates accounted for using the equity method (Note 10) Other comprehensive income (loss) for the year, net of income tax TOTAL COMPREHENSIVE INCOME FOR THE YEAR EARNINGS PER SHARE (Note 19) Basic Diluted		2025	% (75) (56) (131) 25		2024
		Amount (637,081) (474,597) (1,111,678) $ 213,970 $ 3.18 $ 3.17			Amount % 934,955 114 731,925 89 1,666,880 203 $ 2,950,114 359 $ 3.08 $ 3.07
		$			$

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

(Concluded)

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TAIWAN NAVIGATION CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars)

BALANCE AT JANUARY 1, 2024 Appropriation of 2023 earnings Legal reserve Cash dividends Net profit for the year ended December 31, 2024 Other comprehensive income (loss) for the year ended December 31, 2024, net of income tax Total comprehensive income (loss) for the year ended December 31, 2024 Disposal of investments in equity instruments designated as at fair value through other comprehensive income Disposal of investments in equity instruments designated as at fair value through other comprehensive income by associates BALANCE AT DECEMBER 31, 2024 Appropriation of 2024 earnings Legal reserve Cash dividends Net profit for the year ended December 31, 2025 Other comprehensive income (loss) for the year ended December 31, 2025, net of income tax Total comprehensive income (loss) for the year ended December 31, 2025 Disposal of investments in equity instruments designated as at fair value through other comprehensive income BALANCE AT DECEMBER 31, 2025		Ordinary Shares Shares (In Thousands) Amount Capital Surplus 417,294 $ 4,172,945 $ 334,382 - - - - - - - - - - - - - - - - - - - - - 417,294 4,172,945 334,382 - - - - - - - - - - - - - - - - - - 417,294 $ 4,172,945 $ 334,382		Retained Earnings Legal Reserve Unappropriated Earnings $ 2,272,533 $ 7,460,584 166,841 (166,841) - (667,671) - 1,283,234 - 2,054 - 1,285,288 - 4,911 - 4,371 2,439,374 7,920,642 129,457 (129,457) - (625,942) - 1,325,648 - (3,831) - 1,321,817 - 14,688 $ 2,568,831 $ 8,501,748	Other Equity Exchange Differences on Translating Unrealized Income (Loss) on Investments in Financial Assets at Fair Value Through Other Foreign Operations Comprehensive Income $ 180,022 $ 1,548,954 - - - - - - 731,925 932,901 731,925 932,901 - (4,911) - (4,371) 911,947 2,472,573 - - - - - - (474,597) (633,250) (474,597) (633,250) - (14,688) $ 437,350 $ 1,824,635	Total Equity $ 15,969,420 - (667,671) 1,283,234 1,666,880 2,950,114 - - 18,251,863 - (625,942) 1,325,648 (1,111,678) 213,970 - $ 17,839,891
		Shares (In Thousands) 417,294 - - - - - - - 417,294 - - - - - - 417,294

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

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TAIWAN NAVIGATION CO., LTD.

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

CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax Adjustments for: Depreciation and amortization expenses Expected credit loss recognized (reversed) on trade receivables Interest expense Interest income Dividend income Share of profit of subsidiaries and associates Unrealized net (gain) loss on foreign currency exchange Changes in operating assets and liabilities Accounts receivable Trade receivables from related parties Prepayments Other current assets Other financial assets Notes and accounts payable Other payables Other current liabilities Net defined benefit liabilities Other non-current liabilities Cash generated from operations Income tax paid Net cash generated from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from disposal of financial assets at fair value through other comprehensive income Payments for property, plant and equipment Payments for investment properties Increase in other non-current assets Interest received Dividends received Net cash generated from investing activities CASH FLOWS FROM FINANCING ACTIVITIES (Decrease) increase in short-term borrowings Increase in other non-current liabilities Cash dividends paid Interest paid Net cash used in financing activities	2025 $ 1,619,878 129,409 10,709 4,746 (2,022) (279,288) (1,120,473) (199) 1,350 38,281 (1,035) (208) (4,466) (20,553) 6,264 8,971 682 (46,937) 345,109 (162,486) 182,623 16,890 (14,655) - (6,350) 2,237 585,906 584,028 (106,000) 1,014 (625,942) (4,867) (735,795)	2024 $ 1,461,334 128,899 (4,854) 3,307 (1,386) (75,313) (1,202,562) 286 12,504 84,427 (3,682) 110,813 (1,974) 16,234 (11,238) 3,937 (4,922) (46,937) 468,873 (424,386) 44,487 5,608 (18,508) (12,534) (296) 1,348 392,640 368,258 226,000 121 (667,671) (2,953) (444,503) (Continued)

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TAIWAN NAVIGATION CO., LTD.

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

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR The accompanying notes are an integral part of the financial statements.	2025 30,856 102,230 $ 133,086	2024 (31,758) 133,988 $ 102,230 (Concluded)

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

TAIWAN NAVIGATION CO., LTD.

1. GENERAL INFORMATION

Taiwan Navigation Co., Ltd. (the “Corporation”), whose shares are listed on the Taiwan Stock Exchange, was originally majority-owned by the Taiwan Provincial Government but was privatized on June 20, 1998. The Corporation mainly engages in passenger and freight transport via water, port warehousing, aquatic sand mining, and navigation channel dredging and also acts as a shipping agency, provides tugboats, and acts as a land owner in agreements with construction companies for the use of its land for the construction of residential and commercial buildings for sale and rental.

The financial statements are presented in the Corporation’s functional currency, the New Taiwan dollar.

2. APPROVAL OF FINANCIAL STATEMENTS

The financial statements were approved by the Corporation’s board of directors on March 9, 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) did not have material impact on the Corporation’s accounting policies.

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

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

As of the date the financial statements were authorized for issue, the Corporation has assessed that the application of other standards and interpretations will not have a material impact on the Corporation’s financial position and financial performance.

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

Effective Date New, Amended and Revised Standards and Interpretations Announced by IASB (Note 1)

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

• 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 Corporation 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 Corporation 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 Corporation shall disaggregate items with dissimilar characteristics in the primary financial statements and in the notes. The Corporation 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 Corporation as a whole, the Corporation 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 Corporation 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 Corporation shall be classified as investing activities, while interest and dividends paid shall be classified as financing activities. However, if, after assessment, the Corporation 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.

As of the date the financial statements were authorized for issue, the Corporation is continuously assessing the other impacts of the above amended standards and interpretations on the Corporation’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 financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

• b. Basis of preparation

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

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

• 1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;

• 2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for an asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and

• 3) Level 3 inputs are unobservable inputs for an asset or liability.

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

• 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

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• 3) Cash and cash equivalents unless the asset is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.

Current liabilities include:

• 1) Liabilities held primarily for the purpose of trading;

• 2) Liabilities due to be settled within 12 months after the reporting period, even if an agreement to refinance, or to reschedule payments, on a long-term basis is completed after the reporting period and before the financial statements are authorized for issue; and

• 3) Liabilities for which the Corporation 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. Foreign currencies

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

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

Non-monetary items denominated in foreign currencies that are measured at fair value are retranslated at the rates prevailing at the date 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 transaction.

For the purpose of presenting financial statements, the financial statements of foreign operations that are prepared using functional currencies which are different from the currency of the Company are translated into the presentation currency, the New Taiwan dollar, as follows: Assets and liabilities are translated at the exchange rates prevailing at the end of the reporting period and income and expense items are translated at the average exchange rates for the period. The resulting currency translation differences are recognized in other comprehensive income.

On the disposal of a foreign operation (i.e., a disposal of the Corporation’s entire interest in a foreign operation, or a disposal involving the loss of control over a subsidiary that includes a foreign operation, or a partial disposal of an interest in a joint arrangement that includes a foreign operation of which the retained interest becomes a financial asset), all of the exchange differences accumulated in equity in respect of that operation are reclassified to profit or loss.

In a partial disposal of a subsidiary that does not result in the Corporation losing control over the subsidiary, the proportionate share of accumulated exchange differences recognized in other comprehensive income is included in the calculation of equity transactions but is not recognized in profit or loss. For all other partial disposals, the proportionate share of the accumulated exchange differences recognized in other comprehensive income is reclassified to profit or loss.

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• e. Investments in subsidiaries

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

A subsidiary is an entity that is controlled by the Corporation.

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

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

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

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

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

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

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

• f. Investments in associates

An associate is an entity over which the Corporation has significant influence and which is neither a subsidiary nor an interest in a joint venture.

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The Corporation uses the equity method to account for its investments in associates. Under the equity method, investments in an associate are initially recognized at cost and adjusted thereafter to recognize the Corporation’s share of the profit or loss and other comprehensive income of the associate. The Corporation also recognizes the changes in the Corporation’s share of the equity of associates attributable to the Corporation.

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

When the Corporation’s share of losses of an associate equals or exceeds its interest in that associate, the Corporation discontinues recognizing its share of further loss, if any. Additional losses and liabilities are recognized only to the extent that the Corporation has incurred legal obligations, or constructive obligations, or made payments on behalf of that associate.

The entire carrying amount of an investment is tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized is not allocated to any asset that forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

The Corporation discontinues the use of the equity method from the date on which its investment ceases to be an associate. Any retained investment is measured at fair value at that date, and the fair value is regarded as the investment’s fair value on initial recognition as a financial asset. The difference between the previous carrying amount of the associate attributable to the retained interest and its fair value is included in the determination of the gain or loss on disposal of the associate. The Corporation accounts for all amounts previously recognized in other comprehensive income in relation to that associate on the same basis as would be required had that associate directly disposed of the related assets or liabilities.

When the Corporation transacts with its associate, profits and losses resulting from the transactions with the associate are recognized in the Corporation’s financial statements only to the extent of interests in the associate that are not related to the Corporation.

• g. Property, plant and equipment

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

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. Such assets are depreciated and classified to the appropriate categories of property, plant and equipment when completed and ready for intended use.

Except for freehold land which is not depreciated, the depreciation of property, plant and equipment is recognized using the straight-line method. Each significant part is depreciated separately. The estimated useful lives, residual values and depreciation methods are reviewed at the end of each reporting period, with the effects of any changes in the estimates accounted for on a prospective basis.

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

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

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. Impairment of property, plant and equipment and investment properties

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

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

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

• j. Financial instruments

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

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

• 1) Financial assets

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

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a) Measurement categories

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

• i. Financial assets at amortized cost

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

• i) The financial assets are 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 assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Subsequent to initial recognition, financial assets at amortized cost, including cash and cash equivalents, trade receivables (including related parties) at amortized cost, other receivables, (presented in other current assets), other financial assets and net finance lease receivables from related parties, are measured at amortized cost, which equals the gross carrying amount determined using the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

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

• i) Purchased or originated credit-impaired financial asset, for which interest income is calculated by applying the credit adjusted effective interest rate to the amortized cost of such financial assets; and

• ii) Financial asset that is not credit impaired on purchase or origination but has subsequently become credit impaired, for which interest income is calculated by applying the effective interest rate to the amortized cost of such financial assets in subsequent reporting periods.

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

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

• ii. Investments in equity instruments at FVTOCI

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

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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 Corporation’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 Corporation recognizes a loss allowance for expected credit losses on financial assets at amortized cost.

The Corporation always recognizes lifetime expected credit losses (ECLs) for trade receivables (including related parties). For all other financial instruments, the Corporation recognizes lifetime ECLs when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on a financial instrument has not increased significantly since initial recognition, the Corporation 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 Corporation considers the following situations as indication that a financial asset is in default (without taking into account any collateral held by the Corporation):

• Internal or external information shows that the debtor is unlikely to pay its creditors.

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

• c) Derecognition of financial assets

The Corporation 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.

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2) Equity instruments

Equity instruments issued by the Corporation are classified as equity in accordance with the substance of the contractual arrangements and the definitions of an equity instrument.

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

3) Financial liabilities

Financial liabilities are measured at amortized cost using the effective interest method. The difference between the carrying amount of a financial liability derecognized and the consideration paid is recognized in profit or loss.

k. Revenue recognition

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

For contracts where the period between the date on which the Corporation transfers a promised service to a customer and the date on which the customer pays for that service is one year or less, the Corporation does not adjust the promised amount of consideration for the effects of a significant financing component.

As the Corporation provides services for passenger and freight transport, ship chartering and ship management, customers simultaneously obtain and consume the benefit provided by the Corporation’s performance, and the relevant revenue is recognized when the services are provided. The revenue from passenger and freight transport services is recognized with reference to the stage of completion of the services provided and the revenue from ship chartering and ship management services are recognized with reference to the number of days incurred.

l. Leases

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

For a contract that contains a lease component and non-lease components, the Corporation allocates the consideration in the contract to each component on the basis of the relative stand-alone price and accounts for each component separately. However, for the lease of transportation equipment in which the Corporation is a lessee and transportation service is provided by a lessor, the Corporation elects to account for the lease and non-lease components as a single lease component.

1) The Corporation as lessor

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

Under finance leases, the lease payments comprise fixed payments. The net investment in a lease is measured at the present value of the sum of the lease payments receivable by a lessor and any unguaranteed residual value accrued to the lessor plus initial direct costs and is presented as a finance lease receivable. Finance lease income is allocated to the relevant accounting periods so as to reflect a constant, periodic rate of return on the Corporation’s net investment outstanding in respect of leases.

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Lease payments from operating leases are recognized as income on a straight-line basis over the terms of the relevant leases. Initial direct cost incurred in obtaining operating leases are added to the carrying amounts of the underlying assets and recognized as costs on a straight-line basis over the lease terms. Lease modification that resulted from a negotiation with a lessee is accounted for as a new lease from the effective date of modification.

When a lease includes both land and building elements, the Corporation assesses the classification of each element separately as a finance or an operating lease based on the assessment as to whether substantially all the risks and rewards incidental to ownership of each element have been transferred to the lessee.

2) The Corporation as lessee

The Corporation applies a recognition exemption where lease payments are recognized as costs and expenses on a straight-line basis over the lease terms for short-term leases and low-value asset leases.

m. 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.

• n. Government grants

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

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

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

• o. 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 past service cost, as well as gains and losses on settlements) and

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net interest on the net defined benefit liabilities are recognized as employee benefits expense in the period in which they occur or when the plan amendment or curtailment occurs or when the settlement occurs. Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling and the return on plan assets (excluding interest), is recognized in other comprehensive income in the period in which it occurs. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.

Net defined benefit liabilities represent the actual deficit in the Corporation’s defined benefit plans.

p. Taxation

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

1) Current tax

According to the Income Tax Act 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 Corporation 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.

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

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

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

The management of the Corporation evaluated that there were no critical accounting judgments or estimation uncertainty on the accounting policies, estimates and basic assumptions that were adopted by the Corporation.

6. CASH AND CASH EQUIVALENTS

Cash on hand Checking accounts and demand deposits		December 31	December 31
		2025 $ 258 132,828 $ 133,086	2024 $ 258 101,972 $ 102,230

The market rate intervals of cash in banks and cash equivalents at the end of the year are as follows:

Bank balance and cash equivalents	December 31
	2025 2024 0.4%-0.73% 0.64%-1.05%

7. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

Current Domestic investments Listed shares Yang Ming Marine Transport Corporation (Note 23) Non-current Domestic investments Unlisted shares Chunghwa Investment Co., Ltd. Foreign investments Unlisted shares Taiwan Foundation International Pte. Ltd.		**December 31 **	**December 31 **
		2025 $ 2,060,900 $ 186,989 33,402 $ 220,391	2024 $ 2,817,619 $ 79,377 39,266 $ 118,643

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The Corporation’s investments in the ordinary shares mentioned above are expected to earn profit through dividend income. 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 will not be consistent with the Corporation’s strategy of holding these investments for long-term purposes.

Dividends of $279,288 thousand and $75,313 thousand were recognized for the years ended December 31, 2025 and 2024, respectively. Both were related to investments in equity instruments at FVTOCI held as of December 31, 2025 and 2024.

8. ACCOUNTS RECEIVABLE, NET (INCLUDING RELATED PARTIES)

At amortized cost Accounts receivable Less: Allowance for impairment loss Trade receivables from related parties Less: Allowance for impairment loss		**December **	**31 **
		2025 $ 1,669 174 $ 1,495 $ 82,138 10,535 $ 71,603	2024 $ 3,019 - $ 3,019 $ 76,396 - $ 76,396

The Corporation measures loss allowance of trade receivables (including related parties) at an amount equal to lifetime ECLs. The expected credit losses on accounts receivables (including related parties) are estimated by reference to past default experience of the debtors and an analysis of the debtors’ current financial positions. As the Corporation’s historical credit loss experience does not show significantly different loss patterns for different customer segments, the loss allowance based on past due status is not further distinguished according to the Corporation’s different customer base.

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

The aging of receivables (including related parties) is as follows:

0-60 days 61-90 days More than 90 days Gross carrying amount Loss allowance (Lifetime ECLs) Amortized cost		December	31
		2025 $ 68,738 7,272 7,797 83,807 (10,709) $ 73,098	2024 $ 67,336 4,373 7,706 79,415 - $ 79,415

The above aging schedule was based on the numbers of days past due days from the invoice date.

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The movements of the loss allowance of accounts receivable (including related parties) were as follows:

Balance at January 1 Add: Net remeasurement of loss allowance Balance at December 31	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2025 $ - 10,709 $ 10,709	2024 $ 4,854 (4,854) $ -

9. FINANCE LEASE RECEIVABLES FROM RELATED PARTIES, NET

Undiscounted lease payments Year 1 Year 2 Year 3 Year 4 Year 5 Year 5 onwards Less: Unearned finance lease income Net investment in leases presented as finance lease receivables Current Non-current		**December 31 **	**December 31 **
		2025 $ 12,374 74,041 74,041 74,041 74,041 1,332,737 1,641,275 (348,521) $ 1,292,754 $ 57,692 1,235,062 $ 1,292,754	2024 $ 12,136 74,041 74,041 74,041 74,041 1,406,778 1,715,078 (378,266) $ 1,336,812 $ 56,432 1,280,380 $ 1,336,812

The Corporation entered into a contract with CPC Corporation for “Kuan-Tang Industrial Port’s Long-term harbor tug Service” to provide tugboat and port labor transportation and mooring boat for use, which is subject to IFRS 16 “Lease”. All these leases are denominated in New Taiwan dollars. The term of the finance leases is 25 years.

The implicit interest rates are fixed at the contract dates for the entire period of the lease. The implicit interest rate contracted was 1.79%-2.37%.

10. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

• a. Investments in subsidiaries

Tai Shing Maritime Co., S.A. (Tai Shing) Shin Wang Maritime Inc. (Shin Wang)		December 31	December 31
		2025 $ 12,021,039 413,453 $ 12,434,492	2024 $ 11,763,075 331,741 $ 12,094,816

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At the end of the year, the Corporation holds 100% interest in the subsidiaries.

• b. Investments in associates

Associates that are not individually material Yunn Wang Investment Co., Ltd.		**December 31 **	**December 31 **
		2025 $ 206,625	2024 $ 202,212

At the end of the year, the Corporation holds 49.75% interest in Yunn Wang Investment Co., Ltd. (Yunn Wang).

Refer to Table 4 “Information on Investees” for the nature of activities, principal place of business and country of incorporation of Yunn Wang.

The share of profit or loss and other comprehensive income or loss of the Corporation’s investments in subsidiaries and associates were calculated based on the financial statements which have been audited.

Aggregate information of associates:

The Corporation’s share of: Net profit for the year Other comprehensive (loss) income Total comprehensive (loss) income for the year	**For the Year Ended December 31 **	**For the Year Ended December 31 **	**For the Year Ended December 31 **
		2025 $ 7,400 4,831 $ 12,231	2024 $ 5,137 (13,508) $ (8,371)

11. PROPERTY, PLANT AND EQUIPMENT

Freehold Land Cost Balance at January 1, 2025 $ 191,103 Additions - Disposals - Balance at December 31, 2025 $ 191,103 Accumulated depreciation Balance at January 1, 2025 Disposals Depreciation expenses Balance at December 31, 2025 Carrying amount at December 31, 2025 $ 191,103	Buildings Transportation Equipment $ 104,891 $ 2,483,486 - 14,018 - (16,621) $ 104,891 $ 2,480,883 $ 48,995 $ 640,460 - (16,621) 3,948 115,576 $ 52,943 $ 739,415 $ 51,948 $ 1,741,468	Other Equipment $ 4,908 637 - $ 5,545 $ 4,184 - 267 $ 4,451 $ 1,094	Total $ 2,784,388 14,655 (16,621) $ 2,782,422 $ 693,639 (16,621) 119,791 $ 796,809 $ 1,985,613 (Continued)

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Freehold Land Cost Balance at January 1, 2024 $ 191,103 Additions - Disposals - Balance at December 31, 2024 $ 191,103 Accumulated depreciation Balance at January 1, 2024 Disposals Depreciation expenses Balance at December 31, 2024 Carrying amount at December 31, 2024 $ 191,103	Buildings Transportation Equipment $ 89,223 $ 2,469,776 15,668 15,687 - (1,977) $ 104,891 $ 2,483,486 $ 45,895 $ 526,333 - (1,977) 3,100 116,104 $ 48,995 $ 640,460 $ 55,896 $ 1,843,026	Other Equipment Total $ 4,908 $ 2,755,010 - 31,355 - (1,977) $ 4,908 $ 2,784,388 $ 3,852 $ 576,080 - (1,977) 332 119,536 $ 4,184 $ 693,639 $ 724 $ 2,090,749 (Concluded)

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

Buildings Main buildings 48-60 years Renovation work 8 years Transportation equipment Vessels and dry dock 2-25 years Vehicles and motorcycles 3-5 years Other equipment 4-10 years

Property, plant and equipment used by the Corporation and pledged as collateral for bank borrowings are set out in Note 24

The purchase price for acquisition of property, plant and equipment was including prepayments for equipment. The relevant adjustments are as follows:

Increase in property, plant and equipment Decrease in prepayments for equipment	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2025 $ 14,655 - $ 14,655	2024 $ 31,355 (12,847) $ 18,508

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12. INVESTMENT PROPERTIES

Cost Balance at January 1, 2025 and December 31, 2025 Accumulated depreciation Balance at January 1, 2025 Depreciation expenses Balance at December 31, 2025 Carrying amount at December 31, 2025 Cost Balance at January 1, 2024 Additions Balance at December 31, 2024 Accumulated depreciation Balance at January 1, 2024 Depreciation expenses Balance at December 31, 2024 Carrying amount at December 31, 2024	Land $ 1,007,587 $ 1,007,587 $ 995,053 12,534 $ 1,007,587 $ 1,007,587	Buildings $ 248,429 $ 110,147 6,745 $ 116,892 $ 131,537 $ 248,429 - $ 248,429 $ 103,402 6,745 $ 110,147 $ 138,282	Total $ 1,256,016 $ 110,147 6,745 $ 116,892 $ 1,139,124 $ 1,243,482 12,534 $ 1,256,016 $ 103,402 6,745 $ 110,147 $ 1,145,869

In 2017, the Corporation entered into a land lease agreement with a lease term of 20 years and agreed that the lessee construct a building in the name of the Corporation, which is both an applicant of the construction and a proprietor of the building, on the land. In addition, the lessee afforded the cost of building to exchange the right-of-use building during the lease period. In 2019, the construction of building was completed and delivered to the Corporation. The cost of the construction was $132,512 thousand, which was classified as prepaid rent. The Corporation recognized the rental income in installments during the lease period. As of December 31, 2025 and 2024, the balance of unamortized rent collected in advance was $83,365 thousand and $90,830 thousand were included in other current liabilities and other non-current liabilities, respectively.

The investment properties are leased out for 1 to 20 years. The lease contracts contain market review clauses in the event that the lessees exercise their options to extend. The lessees do not have bargain purchase options to acquire the investment properties at the expiry of the lease periods.

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

Year 1 Year 2 Year 3 Year 4 Year 5 Year 5 onwards		December 31	December 31
		2025 $ 48,369 33,340 27,150 22,291 17,141 84,186 $ 232,477	2024 $ 44,538 27,162 11,357 14,253 13,053 100,774 $ 211,137

Investment properties are depreciated using the straight-line method over their estimated useful lives of 25 to 60 years.

The fair value of investment properties were not appraised by independent valuers. The management of the Corporation used the valuation model that market participants use in determining the fair value. The valuation was arrived at by reference to market evidence of transaction prices for similar properties.

Fair value		December 31	December 31
		2025 $ 4,121,118	2024 $ 3,992,553

13. SHORT-TERM BORROWINGS

Unsecured borrowings Credit borrowings Interest rate range		December 31	December 31
		2025 $ 230,000 1.925%	2024 $ 336,000 1.775%

14. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

The Corporation adopted a pension plan under the Labor Pension Act (LPA), which is a state-managed defined contribution plan. Under the LPA, the Corporation makes monthly contributions to employees’ individual pension accounts at 7% of monthly salaries and wages.

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b. Defined benefit plans

The defined benefit plan adopted by the Corporation 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 Corporation contributes amounts equal to 2% 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 Corporation 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 Corporation 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 Corporation has no right to influence the investment policy and strategy.

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

Present value of defined benefit obligation Fair value of plan assets Net defined benefit liabilities Movements in net defined benefit liabilities are as follows: Present Value of the Defined Benefit Obligation Balance at January 1, 2025 $ 98,347 Service cost Current service cost 1,962 Net interest expense (income) 1,475 Recognized in profit or loss 3,437 Remeasurement Return on plan assets (excluding amounts included in net interest) - Actuarial (gain) loss Changes in financial assumptions 1,054 Experience adjustments 8,088 Recognized in other comprehensive income (loss) 9,142 Contributions from the employer - Benefits paid (16,889) Balance at December 31, 2025 $ 94,037		December	31
	2025 2024 $ 94,037 $ 98,347 (66,254) (75,077) $ 27,783 $ 23,270 Fair Value of the Plan Assets Net Defined Benefit Liabilities $ (75,077) $ 23,270 - 1,962 (1,130) 345 (1,130) 2,307 (5,311) (5,311) - 1,054 - 8,088 (5,311) 3,831 (409) (409) 15,673 (1,216) $ (66,254) $ 27,783 (Continued)

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	Present Value of
	the Defined		Net Defined
	Benefit	Fair Value of	Benefit
	Obligation	the Plan Assets	Liabilities
Balance at January 1, 2024	$ 99,107	$ (68,861)	$ 30,246
Service cost
Current service cost	1,983	-	1,983
Net interest expense (income)	1,239	(863)	376
Recognized in profit or loss	3,222	(863)	2,359
Remeasurement
Return on plan assets (excluding amounts
included in net interest)	-	(5,659)	(5,659)
Actuarial (gain) loss
Changes in financial assumptions	(2,126)	-	(2,126)
Experience adjustments	5,731	-	5,731
Recognized in other comprehensive income
(loss)	3,605	(5,659)	(2,054)
Contributions from the employer	-	(7,281)	(7,281)
Benefits paid	(7,587)	7,587	-
Balance at December 31, 2024	$ 98,347	$ (75,077)	$ 23,270
			(Concluded)

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

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

• 2) Interest risk: A decrease in the government bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the plans’ 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 purposes of the actuarial valuations are as follows:

Discount rate Expected rate of salary increase	December 31
	2025 2024 1.375% 1.50% 3.00% 3.00%

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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 will increase (decrease) as follows:

Discount rate 0.25% increase 0.25% decrease Expected rate of salary increase 0.25% increase 0.25% decrease		**December **	**31 **
		2025 $ (2,090) $ 2,164 $ 2,093 $ (2,032)	2024 $ (2,053) $ 2,126 $ 2,058 $ (1,998)

The sensitivity analysis previously presented 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 would occur in isolation of one another as some of the assumptions may be correlated.

Expected contributions to the plans for the next year Average duration of the defined benefit obligation		December	31
		2025 $ 409 9.2 years	2024 $ 466 8.7 years

15. EQUITY

a. Ordinary shares

Shares authorized (in thousands) Capital authorized Shares issued and fully paid (in thousands) Capital issued		**December 31 **	**December 31 **
		2025 480,000 $ 4,800,000 417,294 $ 4,172,945	2024 480,000 $ 4,800,000 417,294 $ 4,172,945

A holder of issued ordinary shares with NT$10 per share is entitled to vote and to receive dividends.

b. Capital surplus

Treasury share transactions Donations		December 31	December 31
		2025 $ 334,352 30 $ 334,382	2024 $ 334,352 30 $ 334,382

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

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• c. Retained earnings and dividends policy

Under the dividends policy as set out forth in the Corporation’s Articles of Incorporation, where the Corporation made a profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside as a legal reserve of 10% of the remaining profit or until the legal reserve equals the Corporation’s paid-in capital, and setting aside or reversing a special reserve in accordance with the laws and regulations. Then, any remaining profit together with any undistributed retained earnings shall be used by the Corporation’s board of directors as the basis for proposing a distribution plan, which shall be resolved in the shareholders’ meeting for the distribution of dividends and bonuses to shareholders. For the policies on the distribution of employees’ compensation and remuneration of directors, refer to Note 17(f).

The Articles of Incorporation also stipulate a dividends policy whereby the payment issuance of cash dividends takes precedence over the issuance of share dividends. In principle, cash dividends shall not be less than 50% of the total dividends distributed.

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

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

The appropriations of earnings for 2024 and 2023 were approved by the shareholders in their meetings in June 2025 and 2024, respectively, are as follows:

Legal reserve Cash dividends	Appropriation of Earnings For the Year Ended December 31 2024 2023 $ 129,457 $ 166,841 625,942 667,671	Dividends Per Share (NT$)	Dividends Per Share (NT$)	Dividends Per Share (NT$)
			For the Year Ended **December 31 **
			2024 $ 1.5	2023 $ 1.6

As of March 9, 2026, the appropriations of earnings 2025 had not yet been proposed by the Corporation’s board of directors. Information on the appropriations of the earnings proposed by the Corporation’s board of directors and approved by shareholder’s general meeting is available at the Market Observation Post System website of the Taiwan Stock Exchange.

16. REVENUE

Revenue from transportation Rental income from investment properties (Note 12) Other revenue	For the Year Ended	For the Year Ended	December 31
		2025 $ 779,320 64,421 8,094 $ 851,835	2024 $ 750,994 62,562 7,538 $ 821,094

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Contract balances

December 31, 2025 December 31, 2024 Accounts receivable (Note 8) $ 1,495 $ 3,019 Trade receivables from related parties (Notes 8 and 23) $ 71,603 $ 76,396 Net finance lease receivables (Note 9) $ 1,292,754 $ 1,336,812	January 1, 2024 $ 15,523 $ 111,079 $ 1,381,627

17. NET PROFIT

a. Other income

Management of service revenues Service fees of endorsement and guarantees Insurance claims Others b. Interest expenses Bank borrowing interest Imputed interest on deposits c. Depreciation and amortization Property, plant and equipment Investment properties Intangible assets An analysis of depreciation by function Operating costs Operating expenses	For the Year Ended	For the Year Ended	December 31
	2025 $ 58,581 44,837 5,576 7,448 $ 116,442 For the Year Ended		2024 $ 53,247 40,087 1,780 3,040 $ 98,154 December 31
	2025 $ 4,512 234 $ 4,746 For the Year Ended		2024 $ 3,101 206 $ 3,307 December 31
		2025 $ 119,791 6,745 2,873 $ 129,409 $ 122,109 4,427 $ 126,536	2024 $ 119,536 6,745 2,618 $ 128,899 $ 122,130 4,151 $ 126,281 (Continued)

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An analysis of amortization by function Operating costs Operating expenses d. Operating expenses directly related to investment properties Direct operating expenses of investment properties generating rental income Direct operating expenses of investment properties not generating rental income e. Employee benefits expense Post-employment benefits Defined contribution plan Defined benefit plans Other employee benefits An analysis of employee benefits expense by function Operating costs Operating expenses	**For the Year Ended **	**For the Year Ended **	**December 31 **
	2025 $ 2,873 - $ 2,873 **For the Year Ended **		2024 $ 2,400 218 $ 2,618 (Concluded) **December 31 **
	2025 $ 21,580 436 $ 22,016 For the Year Ended		2024 $ 21,806 450 $ 22,256 December 31
		2025 $ 10,756 2,307 13,063 362,858 $ 375,921 $ 228,296 147,625 $ 375,921	2024 $ 10,349 2,359 12,708 350,982 $ 363,690 $ 225,473 138,217 $ 363,690

• f. Compensation of employees and remuneration of directors

According to the Company Articles, the Corporation accrued of employees’ compensation at the rates of no less than 0.5% and remuneration of directors at rates of no higher than 1.5%, respectively, of net profit before income tax, compensation of employees, and remuneration of directors. In accordance with the amendment to the Securities and Exchange Act in August 2024, shareholders of the Corporation resolved the amendments to the Corporation’s Articles of Incorporation at their 2025 regular meeting. The amendments explicitly stipulate the allocation of no less than 40% of employees as compensation distributions for non-executive employees.

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The employees’ compensation and remuneration of directors for the years ended December 31, 2025 and 2024, which were approved by the Corporation’s board of directors on March 2026 and 2025, respectively, are as follows:

Amount

Compensation of employees Remuneration of directors	**For the Year Ended December 31 **	**For the Year Ended December 31 **
	2025 Cash $ 16,453 9,000	2024
		Cash $ 14,852 9,000

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

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 no difference between the actual amounts of compensation of employees paid and the amounts recognized in the consolidated financial statements for the year ended December 31, 2023. However, due to changes in accounting estimates, the remuneration of directors recognized for the 2023 fiscal year differed from the actual amount paid. The difference was adjusted to the profit or loss for the following fiscal year.

Amounts approved in the board of directors’ meeting Amounts recognized in the annual financial statements	For the Year Ended December 31, 2023
	Remuneration of Directors $ 17,500 $ 20,413

Information on the compensation of employees and remuneration of directors is available at the Market Observation Post System website of the Taiwan Stock Exchange.

• g. Gains or losses on foreign currency exchange

Foreign exchange losses Foreign exchange gains Net gain (loss)	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2025 $ (35,123) 5,408 $ (29,715)	2024 $ (1,971) 3,282 $ 1,311

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18. INCOME TAXES

a. Income tax recognized in profit or loss

Major components of income tax expense are as follows:

Current tax In respect of the current year Income tax on unappropriated earnings Real investment deduction tax refund Adjustments for the prior years Deferred tax In respect of the current year Income tax expense recognized in profit or loss	**For the Year Ended **	**For the Year Ended **	**December 31 **
		2025 $ 268,591 26,958 (3,024) 3,470 295,995 (1,765) $ 294,230	2024 $ 274,646 41,695 (116,769) (23,122) 176,450 1,650 $ 178,100

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

Profit before tax Income tax expense calculated at the statutory rate Tax effect of adjusting items: Tax-exempt income Real investment deduction tax refund Income tax on unappropriated earnings Adjustments for prior years’ tax Income tax expense recognized in profit or loss	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2025 $ 1,619,878 $ 323,976 (57,150) (3,024) 26,958 3,470 $ 294,230	2024 $ 1,461,334 $ 292,266 (15,970) (116,769) 41,695 (23,122) $ 178,100

b. Current tax liabilities

Current tax liabilities Income tax payable		**December 31 **	**December 31 **
		2025 $ 287,544	2024 $ 154,035

Current income tax payable is the net amount of December 31, 2025 and 2024, deducted by $139,260 thousand and $162,306 thousand of prepaid income tax, respectively.

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c. Deferred tax assets and liabilities

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

For the year ended December 31, 2025

Deferred tax assets Temporary differences Unrealized exchange gains or losses Others Deferred tax liabilities Temporary differences Land value increment tax Unrealized exchange gains or losses Share of profit or loss of subsidiaries accounted for using the equity method For the year ended December 31, 2024 Deferred tax assets Temporary differences Unrealized exchange gains or losses Others Deferred tax liabilities Temporary differences Land value increment tax Share of profit or loss of subsidiaries accounted for using the equity method

Opening Balance Recognized in Profit or Loss Closing Balance $ 93 $ (93) $ - 196 1,972 2,168 $ 289 $ 1,879 $ 2,168 $ 257,964 $ - $ 257,964 - 114 114 5,813 - 5,813 $ 263,777 $ 114 $ 263,891 Opening Balance Recognized in Profit or Loss Closing Balance $ 434 $ (341) $ 93 1,505 (1,309) 196 $ 1,939 $ (1,650) $ 289 $ 257,964 $ - $ 257,964 5,813 - 5,813 $ 263,777 $ - $ 263,777

• d. The aggregate amount of temporary difference associated with investments for which deferred tax liabilities have not been recognized.

As of December 31, 2025 and 2024, the taxable temporary differences associated with investments in subsidiaries for which no deferred tax liabilities have been recognized were both $5,891,972 thousand.

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e. Income tax assessments

The income tax returns of the Corporation through 2023 have been assessed by the tax authorities.

19. EARNINGS PER SHARE

Unit: NT$ Per Share

Basic earnings per share Diluted earnings per share Net Profit for the Year	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2025 $ 3.18 $ 3.17	2024 $ 3.08 $ 3.07

Earnings used in the computation of basic earnings per share	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2025 $ 1,325,648	2024 $ 1,283,234

Weighted Average Number of Ordinary Shares Outstanding (In Thousand Shares)

Weighted average number of ordinary shares used in the computation of basic earnings per share Effect of potentially dilutive ordinary shares Compensation of employees Weighted average number of ordinary shares used in the computation of diluted earnings per share	**For the Year Ended December 31 **	**For the Year Ended December 31 **	**For the Year Ended December 31 **
		2025 417,294 626 417,920	2024 417,294 612 417,906

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

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20. CASH FLOWS INFORMATION FROM FINANCING ACTIVITIES

Changes in liabilities arising from financing activities:

For the year ended December 31, 2025

Short-term borrowings For the year ended December 31, 2024 Short-term borrowings	Opening Balance Cash Flows $ 336,000 $ (106,000) Opening Balance Cash Flows $ 110,000 $ 226,000	Non-cash Changes Foreign Exchange Movements $ - Non-cash Changes Foreign Exchange Movements $ -	Closing Balance $ 230,000 Closing Balance $ 336,000

21. CAPITAL MANAGEMENT

The Corporation manages its capital to ensure that the Corporation will be able to continue as going concerns while maximizing the return to stakeholders through the optimization of the debt and equity balance. The Corporation’s overall strategy remains unchanged in the future.

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

22. FINANCIAL INSTRUMENTS

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

The Corporation’s management believes that the carrying amount of financial assets and liabilities recognized in the financial statements approximate their fair values or their fair values cannot be reliably measured.

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

• 1) Fair value hierarchy

December 31, 2025 Financial assets at FVTOCI Investments in equity instruments Listed shares - ROC Unlisted shares - ROC Unlisted shares - foreign December 31, 2024 Financial assets at FVTOCI Investments in equity instruments Listed shares - ROC Unlisted shares - ROC Unlisted shares - foreign	Level 1 $ 2,060,900 - - $ 2,060,900 Level 1 $ 2,817,619 - - $ 2,817,619	Level 2 $ - - - $ - Level 2 $ - - - $ -	Level 3 $ - 186,989 33,402 $ 220,391 Level 3 $ - 79,377 39,266 $ 118,643	Total $ 2,060,900 186,989 33,402 $ 2,281,291 Total $ 2,817,619 79,377 39,266 $ 2,936,262

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

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

For the year ended December 31, 2025

Financial Assets Balance at January 1 Recognized in other comprehensive income Balance at December 31	Financial Assets at FVTOCI
	Equity Instruments $ 118,643 101,748 $ 220,391

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For the year ended December 31, 2024

Financial Assets Balance at January 1 Recognized in other comprehensive income Balance at December 31	Financial Assets at FVTOCI
	Equity Instruments $ 82,440 36,203 $ 118,643

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

As of December 31, 2025 and 2024, the unlisted equity securities - ROC held by the Corporation are mainly investments in domestic listed shares. Thus, the aforementioned unlisted equity securities were determined using the asset-based approach. Separate assets and liabilities of the underlying investments were regarded as individual evaluation targets and were evaluated according to their nature to reflect their overall fair value. Material unobservable inputs used by the Corporation were 89.75% discount rate for lack of marketability. Besides, the assets of unlisted shares - foreign held by the Corporation were determined using the market-based approach based on the listed companies engaged in the same or similar business. The trading price of its shares in the active market is converted into a value multiplier and then matched with the financial status of the target corporation to determine the value of the evaluation targets. The same as the asset-based approach, separate assets and liabilities of the underlying investments were regarded as individual evaluation targets and were evaluated according to their nature to reflect their overall fair value. Unobservable inputs used by the Corporation were 21.98% and 22.31% discount rate for lack of marketability, respectively. If the discount rate for lack of marketability had increased/decreased by 1% and all other variables were held constant, the fair value would have decreased/increased by $18,679 and $8,253 thousand, respectively.

• c. Categories of financial instruments

Financial assets Financial assets at amortized cost (Note 1) Financial assets at FVTOCI Equity instruments Financial liabilities Amortized cost (Note 2)	**December 31 **
	2025 2024 $ 1,523,257 $ 1,537,661 2,281,291 2,936,262 396,435 517,079

• Note 1: The balances include financial assets measured at amortized cost, which comprise cash and cash equivalents, accounts receivable, trade receivables from related parties, finance lease receivables from related parties, other accounts receivable (included in other current assets), refundable deposits (included in other non-current assets) and other financial assets.

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

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• d. Financial risk management objectives and policies

The Corporation’s major financial instruments include equity and accounts receivable, accounts payable and borrowings. The Corporation’s corporate treasury function is responsible for monitoring and managing the financial risks related to the operations of the Corporation. These risks include market risk, credit risk, and liquidity risk.

1) Market risk

The Corporation’s activities exposed it primarily to the financial risks of changes in foreign currency risk, interest rate risk and other price risk.

a) Foreign currency risk

The carrying amounts of the Corporation’s foreign currency denominated monetary assets and monetary liabilities at the end of the year are set out in Note 26.

Sensitivity analysis

The Corporation is mainly exposed to the U.S. dollar (USD).

The following table details the Corporation’s sensitivity to a 2% increase and decrease in New Taiwan dollars 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 2%. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the end of the year for a 2% change in foreign currency rates. The table below indicates an increase (decrease) in pre-tax profit associated with the New Taiwan dollar strengthening 2% against the USD.

Profit or loss	USD Impact	USD Impact	USD Impact
	For the Year Ended December 31
		2025 $ (217)	2024 $ 40

b) Interest rate risk

The carrying amounts of the Corporation’s financial assets and financial liabilities with exposure to interest rate risk at the end of the year are as follows:

Fair value interest rate risk Financial assets Cash flow interest rate risk Financial assets Financial liabilities	December 31
	2025 2024 $ 1,295,019 $ 1,339,117 82,119 70,360 230,000 336,000

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Sensitivity analysis

The following sensitivity analysis below was determined based on the Corporation’s exposure to changes in interest rates for non-derivative instruments at the end of the year. For variable interest rate liabilities, the analysis was prepared assuming the amount of the each liability outstanding at the end of the year was outstanding for the whole year. The sensitivity rate of 1% 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. The financial assets and liabilities held by the Corporation with variable interest rates will change according to the effective interest rates, which vary with market interest rates, and will result in fluctuations of the future cash flows.

For the financial assets held by the Corporation with variable interest rates on December 31, 2025 and 2024, if the market interest rates had been 1% higher, the cash inflow from variable interest rate financial assets would have been $821 thousand and $704 thousand, respectively. If the market interest rates had been 1% lower, there would be an equal and opposite impact on variable interest rate financial assets, and the amount would be negative.

For the financial liabilities held by the Corporation with variable interest rates on December 31, 2025 and 2024, if the market interest rates had been 1% higher, the cash outflow from variable interest rate financial liabilities would have been $2,300 thousand and $3,360 thousand, respectively. If the market interest rates had been 1% lower, there would be an equal and opposite impact on variable interest rate financial liabilities, and the amount would be negative.

c) Other price risk

The Corporation was exposed to equity price risk through its investments in domestic and foreign listed (unlisted) shares and corporate bonds.

Sensitivity analysis

The equity price risk for the flexible-priced financial assets held by the Corporation was assessed using sensitivity analysis.

If equity prices had been 5% higher/lower and the pre-tax other comprehensive income for the years ended December 31, 2025 and 2024 would have increased/decreased by $114,065 thousand and $146,813 thousand, respectively, as a result of the changes in fair value of financial assets at FVTOCI.

2) Credit risk

There is no significant concentration of credit risk for the Corporation. Credit risk is from cash and cash equivalent deposits in banks and accounts receivable from customers.

The Corporation adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient letters of bank guarantees and security deposits, where appropriate, as a means of mitigating the risk of financial loss from defaults. To reduce credit risk, the Corporation has established internal monitoring procedures to monitor credit risk exposure and the credit condition of counterparties.

The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks, financial institutions and incorporations with high credit-ratings assigned by international credit-rating agencies.

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3) Liquidity risk

The Corporation manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Corporation’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 Corporation relies on bank borrowings as a significant source of liquidity. As of December 31, 2025 and 2024, the Corporation had available unutilized short-term bank loan facilities (including overdraft and guarantee) of $1,551,488 thousand and $2,231,488 thousand, respectively.

The following table details the Corporation’s remaining contractual maturity of its non-derivative financial liabilities with variable interest rates and agreed upon repayment periods. The table was been drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Corporation can be required to pay. The table includes both interest and principal cash flows. The maturity dates for other non-derivative financial liabilities were based on the agreed upon repayment dates.

December 31, 2025

On Demand or Less than 1 Month 1-3 Months Non-interest bearing $ 5,654 $ 720 Variable interest rate liabilities - - $ 5,654 $ 720 December 31, 2024 On Demand or Less than 1 Month 1-3 Months Non-interest bearing $ 7,199 $ 826 Variable interest rate liabilities - - $ 7,199 $ 826	3 Months - 1 Year $ 160,061 232,657 $ 392,718 3 Months - 1 Year $ 173,054 339,578 $ 512,632

23. TRANSACTIONS WITH RELATED PARTIES

The Government has significant influence over the Corporation. Besides, the nature and amounts of transactions, individually and collectively insignificant, with the government-related party have not been disclosed, and information disclosed, elsewhere in the other notes and details of transactions between the Corporation and other related parties are disclosed below.

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• a. Names and categories of the related parties

Related Party Name

Related Party Category

Tai Shing Maritime Co., S.A. (Tai Shing) Subsidiary Shin Wang Maritime Inc. (Shin Wang) Subsidiary Yunn Wang Investment Co., Ltd. Associate Yang Ming Marine Transport Corporation (Yang Ming) Government-related party CPC Corporation Government-related party Land Bank of Taiwan Government-related party Bank of Taiwan Government-related party Mega International Commercial Bank Government-related party First Commercial Bank Government-related party Chang Hwa Bank Government-related party Chunghwa Post Co., Ltd. Government-related party Maritime and Port Bureau. MOTC Government-related party

• b. Operating transactions

Operating revenue Government - related parties CPC Corporation Maritime and Port Bureau. MOTC Associates Others Operating costs Government - related parties CPC Corporation	For the Year Ended	For the Year Ended	December 31
		2025 $ 493,200 123,768 114 $ 617,082 $ 47,312	2024 $ 478,424 116,688 114 $ 595,226 $ 45,272

Transactions with related parties were based on agreements. Lease contracts with associates and government-related parties were based on market conditions.

• c. Bank balances

Bank balances (including pledged time deposits) related to bank were as follows:

Related Party Category/Name Government - related parties Bank of Taiwan Others		December 31	December 31
		2025 $ 124,561 2,454 $ 127,015	2024 $ 94,454 1,727 $ 96,181

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• d. Trade receivables from related parties

Related Party Category/Name Government - related parties CPC Corporation Maritime and Port Bureau. MOTC Subsidiaries Tai Shing Others		December 31	December 31
		2025 $ 46,259 22,207 2,676 461 $ 71,603	2024 $ 52,818 20,351 3,195 32 $ 76,396

The receivables from related parties are unsecured. An allowance for loss of $10,535 thousand was recognized for the amount due from related parties as of December 31, 2025. The reversal of allowance for loss of $4,854 thousand was recognized for the amount due from related parties as of December 31, 2024.

• e. Advance payments on behalf of related parties (included in other financial assets)

Related Party Category/Name Government - related parties CPC Corporation Borrowings from related parties Line Item Related Party Category/Name Short-term borrowings Unsecured borrowings Government - related parties Bank of Taiwan		**December 31 **	**December 31 **
		2025 2024 $ 20,326 $ 14,379 December 31
		2025 $ 230,000	2024 $ 336,000

• f. Borrowings from related parties

Interest expense (included amount of capitalized interest amount)

Related Party Category/Name Government - related parties Bank of Taiwan Mega International Commercial Bank	For the Year Ended	For the Year Ended	December 31
		2025 $ 4,513 - $ 4,513	2024 $ 2,998 103 $ 3,101

The borrowing interest rate of the Corporation’s borrowings from the related parties is equivalent to the market interest rate.

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• g. Advance receipts from related parties (included in other current liabilities and other non-current liabilities)

Related Party Category/Name Government - related parties Maritime and Port Bureau. MOTC		December 31	December 31
		2025 $ 697,329	2024 $ 736,780

• h. Other transactions with government-related parties

For the year ended December 31, 2025 and 2024, the Corporation disposed 221 thousand and 70 thousand shares of Yang Ming (included in financial assets at fair value through other comprehensive income), and recognized gain on disposal of $14,688 thousand and $4,911 thousand, which were transferred directly to retained earnings, respectively.

• i. Dividend income

Related Party Category/Name Government - related parties Yang Ming	**For the Year Ended **	**For the Year Ended **	**December 31 **
		2025 $ 277,500	2024 $ 74,582

• j. Other transactions with related parties (included in non-operating income and expenses - other)

Service revenues of endorsement and guarantees Subsidiaries Tai Shing Management of service revenues Subsidiaries Tai Shing Shin Wang Associates Others Non-operating income-other Government - related parties Yang Ming Associates Others	**For the Year Ended **	**For the Year Ended **	**December 31 **
		2025 $ 44,837 $ 44,333 14,134 114 $ 58,581 $ 3,000 17 $ 3,017	2024 $ 40,087 $ 40,333 12,800 114 $ 53,247 $ 1,500 35 $ 1,535

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• k. Compensation of key management personnel

The compensation of directors and other key management personnel are as follows:

Short-term employee benefits Post-employment benefits	**For the Year Ended **	**For the Year Ended **	**December 31 **
		2025 $ 29,153 1,291 $ 30,444	2024 $ 28,911 1,068 $ 29,979

24. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The following assets were pledged or mortgaged as collateral for bank borrowings and transactions:

Property, plant and equipment Pledged deposits (included in other non-current assets)		December	31
		2025 $ 64,548 2,265 $ 66,813	2024 $ 79,095 2,305 $ 81,400

25. SIGNIFICANT UNRECOGNIZED COMMITMENTS AND CONTINGENCIES

Significant unrecognized commitments and contingencies of the Corporation as of December 31, 2025 were as follows:

• a. The relevant information on the Corporation’s ship management and harbour tug agreements with CPC Corporation and its procurement contract of liner services with Maritime and Port Bureau, MOTC, is stated below:

Ship Date of Agreement Calculation and Fee Collection Method CPC Corporation TAI CHIN 201, 202, 2007.02.10-2032.12.31 The fee was $368 thousand per day, which was 203 and 205 calculated per day, and collected on a monthly basis. HONG YUN and 2023.01.04-2028.01.23 Basic fee of ship management was $158 thousand SHENG YUN for each ship per day, which was calculated per day, and collected on a monthly basis. DER YUN 2022.10.28-2027.10.27 Basic fee of ship management was $146 thousand for each ship per day, which was calculated per day, and collected on a monthly basis. TAI CHIN 301, 302, 2022.11.25-2047.12.31 The fee was $660 thousand per day, which was 303, 305, 306, 307 calculated per day, and collected on a monthly and 308 basis. Maritime and Port Bureau. MOTC PENGHU 2023.09.06-2043.09.06 The fee was $238-$388 thousand per voyage which was calculated and collected per quarterly.

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As of December 31, 2025, the Corporation entrusted the Bank of Taiwan to issue a letter of guarantee to CPC Corporation and Maritime and Port Bureau, MOTC in the amount of $218,512 thousand, and also entrusted the Land Bank of Taiwan to issue a letter of guarantee for the contract of “Kuan-Tang Industrial Port’s Long-term Harbor Tug Service” to CPC Corporation in the with amount of $357,000 thousand, and the amount of performance guarantee issued by Shin Kong Bank for procurement contract to Maritime and Port Bureau, MOTC, was $756,371 thousand.

• b. In November 2023, the board of directors of the subsidiary Tai Shing approved the agreement by entering into a contract with Morning Daedalus Navigation S.A., a wholly owned subsidiary of Namura Shipbuilding Co., Ltd., to build two bulk carriers. As of the date of the auditors’ report, the amount of US$19,380 thousand has been paid and included in prepayments for equipment. The remaining unpaid amount was US$45,220 thousand.

• c. In November 2024, the board of directors of the subsidiary Tai Shing approved the agreement with entering into a contract with Oshima Shipbuilding Co., Ltd. to build two bulk carriers. As of the date of the auditors’ report, the amount of US$15,544 thousand had been paid and included in prepayments for equipment. The remaining unpaid amount was US$62,176 thousand. The Corporation is Tai Shing’s guarantor of Oshima shipbuilding Co., Ltd.

26. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

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

December 31, 2025

		Foreign			Carrying
		Currency			Amount
	(In Thousands)		Exchange Rate	(In	Thousands)
Financial assets
Monetary items
USD	$	547	31.43 (USD:NTD)	$	17,183
Non-monetary items
Investments accounted for using the equity
method
USD	$	395,625	31.43 (USD:NTD)	$	12,434,492
Financial liabilities
Monetary items
USD	$	201	31.43 (USD:NTD)	$	6,315

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December 31, 2024

		Foreign			Carrying
		Currency			Amount
	(In Thousands)		Exchange Rate	(In	Thousands)
Financial assets
Monetary items
USD	$	114	32.785 (USD:NTD)	$	3,724
Non-monetary items
Investments accounted for using the equity
method
USD	$	368,913	32.785 (USD:NTD)	$	12,094,816
Financial liabilities
Monetary items
USD	$	174	32.785 (USD:NTD)	$	5,705

For the years ended December 31, 2025 and 2024, net foreign exchange gain (loss) were $(29,715) thousand and $1,311 thousand, respectively, resulting from the fluctuation of the USD.

27. SEPARATELY DISCLOSED ITEMS

• a. Information about significant transactions and investees:

• 1) Financing provided to others (None)

• 2) Endorsements/guarantees provided (Table 1)

• 3) Significant marketable securities held (Table 2)

• 4) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 3)

• 5) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital (None)

• b. Intercompany relationships and significant intercompany transactions (Table 4)

• c. Information on investments in mainland China (None)

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TABLE 1

TAIWAN NAVIGATION CO., LTD. AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED FOR THE YEAR ENDED DECEMBER 31, 2025 (New Taiwan Dollars/U.S. Dollars in Thousands)

No.	Endorser/Guarantor	Endorsee/Guarantee	Endorsee/Guarantee	Limit on Endorsement/ Guarantee Given on Behalf of Each Party (Notes 1, 2 and 3)	Maximum Amount Endorsed/ Guaranteed During the Year (Note 3)	Outstanding Endorsement/ Guarantee at the End of the Year (Note 3)	Actual Borrowing Amount (Note 3)	Amount Endorsed/ Guaranteed by Collaterals	Ratio of Accumulated Endorsement/ Guarantee to Net Equity in Latest Financial Statements (%)	Aggregate Endorsement/ Guarantee Limit (Notes 1, 2 and 3)	Endorsement/ Guarantee Given by Parent on Behalf of Subsidiaries	Endorsement/ Guarantee Given by Subsidiaries on Behalf of Parent	Endorsement/ Guarantee Given on Behalf of Company in Mainland China	Note
		Name	Relationship
0	Taiwan Navigation Co., Ltd.	Tai Shing	Subsidiary	$ 35,679,782	$ 11,864,882 (US$ 377,502)	$ 11,864,882 (US$ 377,502)	$ 8,681,600 (US$ 276,220)	$ -	66.51	$ 35,679,782	Yes	-	-	-
1	Tai Shing	Taiwan Navigation Co., Ltd.	Parent company	7,378,888 (US$ 234,772)	-	-	-	-	-	7,378,888 (US$ 234,772)	-	Yes	-	-

Note 1: Not more than twice the net equity in the latest financial statement of Taiwan Navigation Co., Ltd.

Note 2: Not more than twice the endorser’s/guarantor’s paid-in capital of Tai Shing Maritime Co., S.A.

Note 3: Translated at the exchange rate on December 31, 2025, US$1=NT$31.43.

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TABLE 2

TAIWAN NAVIGATION 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	Relationship with the Holding Company	Financial Statement Account		December 31, 2025	December 31, 2025		Note
				Number of Shares	Carrying Amount	Percentage of Ownership (%)	Fair Value
Taiwan Navigation Co., Ltd.	Listed shares Yang Ming	Significantly influenced by the Government	Financial assets at FVTOCI - current	37,000,000	$ 2,060,900	1.06	$ 2,060,900

Note: See Table 4 for the information on investments in subsidiaries and associates.

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TABLE 3

TAIWAN NAVIGATION CO., LTD. AND SUBSIDIARIES

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Seller/Buyer	Related Party	Relationship	Transaction Details	Transaction Details	Transaction Details		Abnormal Transaction	Abnormal Transaction	Notes/Accounts Receivable (Payable)	Notes/Accounts Receivable (Payable)	Note
			Purchases/Sales	Amount	% of Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total (Note 2)
Taiwan Navigation Co., Ltd. Tai Shing Shin Wang	CPC Corporation Maritime and Port Bureau. MOTC Shin Wang Tai Shing	(Note 1) (Note 1) The same parent company The same parent company	Ship management service and port service revenue Coastal route revenue Shipping revenue Shipping costs	$ (493,200) (123,768) (804,875) 804,875	(58) (15) (27) 91	By negotiations By negotiations By negotiations By negotiations	$ - - - -	- - - -	$ 46,259 22,207 57,374 (57,374)	65 31 100 (99)

Note 1: Significantly influenced by the Government.

Note 2: The proportion of total receivables (payables).

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TABLE 4

TAIWAN NAVIGATION CO., LTD. AND SUBSIDIARIES

INFORMATION ON INVESTEES FOR THE YEAR ENDED DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Investor Company	Investee Company	Location	Main Business and Products	Investment Amount	Investment Amount	As of December 31, 2025	As of December 31, 2025	As of December 31, 2025	Net Income (Loss) of the Investee	Share of Profit (Loss)	Note
				December 31, 2025	December 31, 2024	Number of Shares	%	Carrying Amount
Taiwan Navigation Co., Ltd.	Tai Shing Shin Wang Yunn Wang	Panama City, Panama Monrovia City, Liberia Taipei	Rental and sale of ships Rental and sale of ships Investment	$ 3,921,447 32,500 41,861	$ 3,921,447 32,500 41,861	100 1 5,211,474	100.00 100.00 49.75	$ 12,021,039 413,453 206,625	$ 737,931 375,142 14,874	$ 737,931 375,142 7,400

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TAIWAN NAVIGATION CO., LTD.

SCHEDULE OF THE STATEMENTS OF IMPORTANT ACCOUNTING ITEMS

Statement Statement of Assets, Liabilities and Equities Statement of cash and cash equivalents Statement of changes in financial assets at FVTOCI Statement of changes in investments accounted for using the equity method Statement of changes in property, plant and equipment Statement of changes in accumulated depreciation of property, plant and equipment Statement of changes in investments properties Statement of short-term borrowings Statement of Profit and Loss Statement of operating revenue Statement of operating costs Statement of operating expenses Statement of analysis of employee benefits expense, depreciation and amortization by function

**Schedule Number **

1 2 3 Note 11 Note 11 Note 12 4 5 6 7 8

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SCHEDULE 1

TAIWAN NAVIGATION CO., LTD.

STATEMENT OF CASH AND CASH EQUIVALENTS DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Item Cash on hand Bank balance Checking accounts Demand deposits (Note)	Amount $ 258 50,710 82,118 132,828 $ 133,086

Note: Including US$447 thousand, at exchange rates of US$1=$31.43.

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SCHEDULE 2

TAIWAN NAVIGATION CO., LTD.

STATEMENT OF CHANGES IN FINANCIAL ASSETS AT FVTOCI FOR THE YEAR ENDED DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Securities Current Yang Ming Non-current Chunghwa Investment Co., Ltd. Taiwan Foundation International Pte. Ltd.	Balance, January 1, 2025 Shares Amount 37,220,858 $ 2,817,619 4,590,000 $ 79,377 1,500,000 39,266 $ 118,643	Decrease in 2025 Shares Amount 220,858 $ 16,890 - $ - - - $ -	Gainor (Loss) on Financial Assets Shares Amount - $ (739,829) - $ 107,612 - (5,864) $ 101,748	Balance, December 31, 2025	Balance, December 31, 2025
	Shares 37,220,858 4,590,000 1,500,000	Shares 220,858 - -	Shares - - -	Shares 37,000,000 4,590,000 1,500,000	Amount $ 2,060,900 $ 186,989 33,402 $ 220,391

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SCHEDULE 3

TAIWAN NAVIGATION CO., LTD.

STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD FOR THE YEAR ENDED DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Investees Unlisted shares Tai Shing Shin Wang Yunn Wang	Balance, January 1, 2025 Share of Profit of Subsidiaries and Associates Accounted for Using the Equity Method Equity Adjustments Shares Amount Cash Dividends (Note 1) (Note 2) 100 $ 11,763,075 $ - $ 737,931 $ (479,967) 1 331,741 (298,800) 375,142 5,370 5,211,474 202,212 (7,818) 7,400 4,831 $ 12,297,028 $ (306,618) $ 1,120,473 $ (469,766)	Balance, December 31, 2025
	Shares 100 1 5,211,474	Shares % 100 100.00 1 100.00 5,211,474 49.75	Amount $ 12,021,039 413,453 206,625 $ 12,641,117

Note 1: Investment accounted for using the equity method and related share of profit was calculated based on the financial statement that have been audited.

Note 2: Including exchange differences on translating foreign operations and unrealized gain (loss) on investments in financial assets at FVTOCI.

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SCHEDULE 4

TAIWAN NAVIGATION CO., LTD.

STATEMENT OF SHORT-TERM BORROWINGS DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Financial Institution Loan Period Rate Bank of Taiwan 2025.8.8-2026.8.8 1.925%	Balance $ 230,000	Financing Facilities Mortgage or Collateral $ 650,000 None

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SCHEDULE 5

TAIWAN NAVIGATION CO., LTD.

STATEMENT OF OPERATING REVENUE FOR THE YEAR ENDED DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Item Ship management revenue Port service revenue Coastal route revenue Investment properties rent revenue Others (Note)	Amount $ 333,997 156,203 289,120 64,421 8,094 $ 851,835

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

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SCHEDULE 6

TAIWAN NAVIGATION CO., LTD.

STATEMENT OF OPERATING COSTS FOR THE YEAR ENDED DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Item Salary and pension Freight Port charges Stevedoring expenses Usage material fee Fuel Material Grease Depreciation Others (Note)	Amount $ 195,651 7,253 21,444 28,697 45,982 5,498 1,563 53,043 122,109 114,106 $ 513,606

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

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SCHEDULE 7

TAIWAN NAVIGATION CO., LTD.

STATEMENT OF OPERATING EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Items Salary and pension Expected credit loss recognized on trade receivables Labor and health insurance Depreciation Others (Note)	Amount $ 138,251 10,709 7,351 4,427 39,507 $ 200,245

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

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SCHEDULE 8

TAIWAN NAVIGATION CO., LTD.

STATEMENT OF ANALYSIS OF EMPLOYEE BENEFITS EXPENSE, DEPRECIATION AND AMORTIZATION BY FUNCTION FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars)

Employee benefits expense Salary Labor and health insurance Pension Board compensation Other employee benefits Depreciation Amortization	2025	Total $ 308,599 23,275 13,063 12,240 18,744 $ 375,921 $ 126,536 $ 2,873	2024
	Classified as Operating Costs Classified as Operating Expenses $ 187,000 $ 121,599 15,924 7,351 8,651 4,412 - 12,240 16,721 2,023 $ 228,296 $ 147,625 $ 122,109 $ 4,427 $ 2,873 $ -		Classified as Operating Costs Classified as Operating Expenses $ 183,985 $ 112,361 16,055 7,608 8,513 4,195 - 12,080 16,920 1,973 $ 225,473 $ 138,217 $ 122,130 $ 4,151 $ 2,400 $ 218	Total $ 296,346 23,663 12,708 12,080 18,893 $ 363,690 $ 126,281 $ 2,618

• Note 1: For the years ended December 31, 2025 and 2024, the Corporation had an average 241 and 242 employees, respectively, which included both were 7 non-employee directors for the years then ended, respectively. The calculation basis was consistent with employee benefits expense.

• Note 2: a. The average employee benefits expense for the year ended December 31, 2025 was $1,554 thousand. The average employee benefits expense for the year ended December 31, 2024 was $1,496 thousand.

• b. The average employee salary for the year ended December 31, 2025 was $1,319 thousand. The average employee salary for the year ended December 31, 2024 was $1,261 thousand.

• c. Changes in average employee salary increase 4.6%.

• d. Supervisors’ remuneration for current year and the prior year: The Corporation has no supervisors.

• e. The corporation’s directors, managers and employees’ remuneration policies are as follows:

  • 1) Establish a salary and remuneration committee to regularly review the corporation’s directors and managers’ performance evaluation and salary remuneration policies, systems, standards and structures.

  • 2) The management department regularly evaluates and sets the salary and remuneration of the corporation’s employees, and the arrangement complies with relevant laws and regulations and is sufficient to attract outstanding talents.

  • 3) The performance evaluation and remuneration of directors, managers and employees should refer to the normal payment situation of peers and public equity private enterprises, and consider the time invested by individuals, responsibilities, etc., to evaluate personal performance and corporation operating performance and future risks. The reasonableness of the connection avoids guiding directors, managers and employees to engage in behaviors that exceed the corporation’s risk appetite in pursuit of remuneration.

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