Stock Code: 1418

TongHwa Corporation
(Formerly known as: Tong-Hwa Synthetic Fiber Co., Ltd.)
Individual Financial Statements and Independent
Auditors’ Report
Years 2025 and 2024

Address: 9F, No. 56, Sec. 1, Xinsheng S.
Road, Taipei, Taiwan
Tel: (02) 2396-7768

TongHwa Corporation
(Formerly known as: Tong-Hwa Synthetic Fiber Co., Ltd.)
Individual Financial Statements Table of Contents
Years 2025 and 2024

ITEM	PAGE
I. Cover Page	1
II. Table of Contents	2
III. Independent Auditor’s Report	3-7
IV. Individual Balance Sheet	8-9
V. Individual Income Statement	10
VI. Individual Statement of Changes in Equity	11
VII. Individual Statement of Cash Flows	12-13
VIII. Notes to the Individual Financial Statements	14-88
1. Company History	14
2. Date and Procedures of Approval of Financial Report	14
3. Application of Newly Issued and Revised Standards and Interpretations	14-16
4. Summary of Significant Accounting Policies	16-37
5. Sources of Significant Accounting Judgments, Estimates, and Assumptions Uncertainties	37-38
6. Explanation of Significant Accounting Items	39-84
7. Related Party Transactions	84-86
8. Pledged Assets	87
9. Significant Contingent Liabilities and Unrecognized Contractual Commitments	87
10. Significant Disaster Losses	88
11. Significant Subsequent Events	88
12. Others	88
13. Note Disclosures	88
(1) Information on Significant Transactions	88
(2) Information on Investee Companies	88
(3) Information on Mainland China Investments	88
14. Segment Information	88
IX. Major Accounting Items	93-115

Independent Auditors' Report

NO. 23671140A

To Shareholders of TongHwa Corporation:

(Formerly known as: Tong-Hwa Synthetic Fiber Co., Ltd.)

Opinion

We have audited the individual balance sheet of TongHwa Corporation (hereinafter referred to as the "Company") as of December 31, 2025 and 2024, and the individual statements of comprehensive income, changes in equity, cash flows for the year then ended, and notes to the individual financial statements (including a summary of significant accounting policies).

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

Basis for opinions

We conducted our audit in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and Statement of Auditing Standards. Our responsibility under those standards is further described in the Auditor's Responsibility section of our audit report. We are independent from the Company in accordance with the Norm of Professional Ethics for Certified Public Accountant and 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 refer to the most important issues in the audit of the individual financial statements of the Company for the year 2025, as determined by the professional judgment of the auditors. These matters have been addressed in the process of auditing the individual financial statements as a whole and forming an audit opinion, and the auditors do not express a separate opinion on these matters.

The key audit matters of the Company for the individual financial statements for the year 2025 are as follows:

Fair value assessment of investment properties

Please refer to Note 4(9) of the individual financial statements for the accounting policy for investment properties, Note 5 for the accounting estimates and assumptions related to investment properties, and Note 6(12) for the explanation of the accounting items for investment properties.

The investment properties of the Company are measured at fair value. To support management’s reasonable estimates, the Company uses the appraisal reports of independent valuation institutions. Due to the significant judgments and estimates involved in the selection of the valuation methods and parameters, it is identified as a key audit matter.

The auditors performed the following key audit procedures:

Assess the professional competence, suitability, and objectivity of real estate appraisers appointed by management to be responsible for fair value measurement.
Review the fair value appraisal report, understand whether the valuation method and assumptions comply with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and Regulations on Real Estate Appraisal, evaluate the relevance and reliability of the data sources and significant parameters used in the appraisal report, and confirm the reasonableness of the appraisal results.

Emphasis of matter – Long-term borrowings

As described in Note 6(15) to the individual financial statements, long-term borrowings due within one year of TongHwa Corporation as of December 31, 2025 amounted to NT$3,460,402 thousand. Our opinion is not modified in respect of this matter.

Responsibilities of management and governance units for individual financial statements

The responsibility of management is to prepare individual financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and to maintain necessary internal controls related to the preparation of individual financial statements in order to ensure that the individual financial statements are not materially misstated due to fraud or error.

In preparing the individual financial statements, the responsibility of management also includes assessing the ability of the Company to continue as a going concern, disclosing relevant matters, and adopting the going concern basis of accounting unless management intends to liquidate the Company or cease operations, or no other viable alternatives exist except liquidation or cessation.

The governance units of the Company (including the Audit Committee) are responsible for overseeing the financial reporting process.

Responsibilities of the auditor in auditing the individual financial statements

The purpose of the auditor in auditing the independent financial statements is to obtain reasonable assurance about whether the independent financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an audit report. Reasonable assurance is a high level of assurance, but the audit work performed in accordance with the Statement of Auditing Standards cannot guarantee that all material misstatements will be detected. Misstatements may arise from fraud or error. If the amount of individual or aggregated misstatements that could reasonably be expected to influence the economic decisions of users made on the basis of the individual financial statements is material, such misstatements are considered to be material.

When auditing in accordance with the Statement of Auditing Standards, the accountant uses professional judgment and professional skepticism. We also perform the following work:

Identify and evaluate the risk of material misstatement of the individual financial statements due to fraud or error, design and implement appropriate response procedures for the assessed risks, and obtain sufficient and appropriate audit

evidence as a basis for the audit opinion. Because fraud may involve collusion, forgery, intentional omission, false statements, or circumvention of internal controls, the risk of material misstatement due to fraud is higher than that due to error.

Obtain the necessary understanding of internal controls related to the audit and design appropriate audit procedures under the circumstances, but do not express an opinion on the effectiveness of the internal controls of the Company.
Evaluate the appropriateness of the accounting policies adopted by management and the reasonableness of the accounting estimates and related disclosures made.
Based on the audit evidence obtained, draw conclusions on the appropriateness of adopting the going concern basis of accounting by the management and whether there are events or conditions that may cast significant doubt on the ability of the Company to continue as a going concern. If the accountant believes that there is significant uncertainty about such events or conditions, he/she must alert the users of the individual financial statements to the related disclosures in the audit report, or amend the audit opinion if such disclosures are inappropriate. The accountant's conclusion is based on the audit evidence obtained as of the date of the audit report. However, future events or conditions may lead the Company to no longer have the ability to continue as a going concern.
Evaluate the overall expression, structure, and content of the individual financial statements (including related notes), and determine whether the individual financial statements are appropriate for expressing the relevant transactions and events.
Obtain sufficient and appropriate audit evidence for the financial information of the entities within the Company in order to express an opinion on the individual financial statements. The auditor is responsible for guiding, supervising, and executing the audit engagement, and is responsible for forming the audit opinion on the Company.

The matters that the auditor communicates with the management include the planned audit scope and timing, as well as significant audit findings (including significant deficiencies in internal control identified during the audit process).

The auditor also provides the management with a statement confirming that

personnel subject to independence regulations within the auditor’s firm have adhered to the independence requirements set forth in the professional ethics standards for accountants. Additionally, the auditor communicates all relationships and other matters (including related safeguards) that could be considered to affect the auditor’s independence.

Based on the matters communicated with the management, the auditor determines the key audit matters for the audit of the individual financial statements of the Company for the year 2025. The auditor states these matters in the audit report, unless disclosure of specific matters is prohibited by law or, in rare circumstances, the auditor decides not to communicate specific matters in the audit report because the negative impact of such communication is reasonably expected to outweigh the public interest to be served.

Baker Tilly Clock & Co.

CPA: Wu Hsing-Liang

CPA: Lai Chia-Yu

Approval Number:
Financial Supervisory Commission Securities and Futures
Bureau Audit Approval No. 1050043092
Financial Supervisory Commission Securities and
Futures Bureau Review No. 09600000880

March 5, 2026

TongHwa Corporation (Formerly Known as: Tong-Hwa Synthetic Fiber Co., Ltd.)

Individual Balance Sheets

December 31, 2025 and 2024

Unit: NT$ thousands

Assets		Note	December 31, 2025		December 31, 2024
Code	Account items		Amount	%	Amount	%
	Current assets
1100	Cash and cash equivalents	6(1)	$ 541,951	10	$ 503,650	10
1110	Financial assets at fair value through profit or loss – current	6(2)	55,035	1	84,972	2
1170	Accounts receivable	6(4)	—	—	668	—
1200	Other receivables	6(5), 7	4,835	—	3,157	—
1220	Current income tax assets	6(26)	1,264	—	1,071	—
130x	Inventory	6(6), 8	450,224	8	392,650	7
1410	Prepayments	6(7)	6,963	—	6,710	—
1470	Other current assets		119	—	136	—
11xx	Total current assets		1,060,391	19	993,014	19
	Non-current assets
1510	Financial assets at fair value through profit or loss – non-current	6(2)	105,946	2	104,173	2
1517	Financial assets at fair value through other comprehensive income – non-current	6(3)	4,261	—	5,550	—
1550	Investments accounted for using equity method	6(8)	474,062	9	476,602	9
1600	Property, plant and equipment	6(9), 8	696,216	13	688,505	13
1755	Right-of-use assets	6(10)	9,170	—	11,035	—
1760	Investment property	6(12), 8	3,085,012	56	2,955,472	56
1975	Net defined benefit assets – non-current	6(17)	25,750	1	22,848	1
1990	Guarantee deposits paid		5,418	—	7,338	—
15xx	Total non-current assets		4,405,835	81	4,271,523	81
1xxx	Total assets		$ 5,466,226	100	$ 5,264,537	100

(Continued on next page)

TongHwa Corporation (Formerly Known as: Tong-Hwa Synthetic Fiber Co., Ltd.)
Individual Balance Sheets (Continued)
December 31, 2025 and 2024
Unit: NT$ thousands

Liabilities and equity		Note	December 31, 2025		December 31, 2024
Code	Account items		Amount	%	Amount	%
	Current liabilities
2100	Short-term loans	6(13)	$ 200,000	4	$ —	—
2150	Notes payable	7	8	—	31	—
2200	Other payables	6(14)	18,152	—	23,569	—
2280	Current lease liabilities	6(10)	1,960	—	1,916	—
2320	Long-term loans due within one year	6(15)	3,460,402	63	—	—
2300	Other current liabilities	6(16)	1,817	—	1,827	—
21xx	Total current liabilities		3,682,339	67	27,343	—
	Non-current liabilities
2540	Long-term loans	6(15)	—	—	3,432,600	65
2570	Deferred tax liabilities	6(26)	543,998	10	493,682	10
2580	Lease liabilities – non-current	6(10)	7,469	—	9,428	—
2650	Credit balance of investments accounted for using equity method	6(8)	20	—	—	—
2670	Other non-current liabilities	6(16), 7	770	—	521	—
25xx	Total non-current liabilities		552,257	10	3,936,231	75
2xxx	Total liabilities		4,234,596	77	3,963,574	75
	Equity	6(18)
3100	Share capital		568,343	10	568,343	11
3200	Capital surplus		8,008	—	8,008	—
	Retained earnings
3320	Special reserve		1,560	—	1,560	—
3350	Accumulated deficit		(816,405)	(15)	(748,361)	(14)
3400	Other equity		1,550,457	29	1,551,746	30
3500	Treasury stock		(80,333)	(1)	(80,333)	(2)
3xxx	Total equity		1,231,630	23	1,300,963	25
	Total liabilities and equity		$ 5,466,226	100	$ 5,264,537	100

(Please refer to the attached notes to the individual financial statements.)
Chairman: Lin Chuang-Ju
Manager: Lin Chuang-Yeh
Account Officer: Yeh Yan-Ling

TongHwa Corporation (Formerly Known as: Tong-Hwa Synthetic Fiber Co., Ltd.)

Individual Statements of Comprehensive Income

For the Years Ended December 31, 2025 and 2024

Unit: NT$ thousands

Code	Item	Notes	2025		2024
			Amount	%	Amount	%
4000	Operating revenue	6(19)	$ 5,329	100	$ 10,248	100
5000	Operating costs	6(6)(25), 7	(1,088)	(20)	(16,652)	(162)
5900	Gross profit (loss) from operations		4,241	80	(6,404)	(62)
6000	Operating expenses	6(25)
6100	Selling expenses		(17,721)	(333)	(19,342)	(189)
6200	Administrative expenses		(58,629)	(1,100)	(56,228)	(548)
	Total operating expenses		(76,350)	(1,433)	(75,570)	(737)
6500	Other net income and expenses	6(20)	(117)	(2)	30,786	300
6900	Net operating loss		(72,226)	(1,355)	(51,188)	(499)
7000	Non-operating income and expenses
7100	Interest revenue	6(21)	4,116	77	8,895	87
7010	Other income	6(22), 7	15,568	292	7,464	73
7020	Other gains and losses	6(23)	128,599	2,413	163,671	1,597
7050	Financing costs	6(24)	(94,486)	(1,773)	(87,177)	(851)
7070	Share of profit of subsidiaries and associates accounted for using equity method		(1,665)	(31)	1,876	18
	Total non-operating income and expenses		52,132	978	94,729	924
7900	Net profit (loss) before tax		(20,094)	(377)	43,541	425
7950	Income tax benefit (expense)	6(26)	(49,843)	(935)	(17,756)	(173)
8200	Net income (loss) for the period		(69,937)	(1,312)	25,785	252
8300	Other comprehensive income
8310	Items that may not be reclassified to profit or loss:
8311	Remeasurements of defined benefit plans	6(17)	2,366	44	4,085	40
8316	Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income	6(18)	(1,289)	(24)	369	3
8349	Income tax related to components of other comprehensive income	6(26)	(473)	(9)	(817)	(8)
	Other comprehensive income for the period		604	11	3,637	35
8500	Total comprehensive income		$ (69,333)	(1,301)	$ 29,422	287
	Earnings (loss) per share (NT$)	6(27)
9750	Basic earnings (loss) per share		$ (1.29)		$ 0.47

(Please refer to the attached notes to the individual financial statements.)

Chairman: Lin Chuang-Ju

Manager: Lin Chuang-Yeh

Account Officer: Yeh Yan-Ling

TongHwa Corporation (Formerly Known as: Tong-Hwa Synthetic Fiber Co., Ltd.)
Individual Statements of Changes in Equity
For the Years Ended December 31, 2025 and 2024

Unit: NT$ thousands

Item	Share capital	Capital surplus	Retained earnings		Other equity items		Treasury stock	Total equity
			Special reserve	Accumulated deficit	Unrealized gains (losses) from financial assets at fair value through other comprehensive income	Revaluation surplus of properties
Balance as of January 1, 2024	$ 568,343	$ 8,008	$ 1,560	$ (777,414)	$ (230,614)	$ 1,781,991	$ (80,333)	$ 1,271,541
Net income for the period	—	—	—	25,785	—	—	—	25,785
Other comprehensive income for the period	—	—	—	3,268	369	—	—	3,637
Total comprehensive income	—	—	—	29,053	369	—	—	29,422
Balance as of December 31, 2024	$ 568,343	$ 8,008	$ 1,560	$ (748,361)	$ (230,245)	$ 1,781,991	$ (80,333)	$ 1,300,963
Balance as of January 1, 2025	$ 568,343	$ 8,008	$ 1,560	$ (748,361)	$ (230,245)	$ 1,781,991	$ (80,333)	$ 1,300,963
Net loss for the period	—	—	—	(69,937)	—	—	—	(69,937)
Other comprehensive income for the period	—	—	—	1,893	(1,289)	—	—	604
Total comprehensive income	—	—	—	(68,044)	(1,289)	—	—	(69,333)
Balance as of December 31, 2025	$ 568,343	$ 8,008	$ 1,560	$ (816,405)	$ (231,534)	$ 1,781,991	$ (80,333)	$ 1,231,630

(Please refer to the attached notes to the individual financial statements.)

Chairman: Lin Chuang-Ju
Manager: Lin Chuang-Yeh
Account Officer: Yeh Yan-Ling

TongHwa Corporation (Formerly Known as: Tong-Hwa Synthetic Fiber Co., Ltd.)

Individual Statements of Cash Flows

For the Years Ended December 31, 2025 and 2024

Unit: NT$ thousands

Item	2025	2024
Cash flows from (used in) operating activities:
Net profit (loss) before tax	$ (20,094)	$ 43,541
Adjustments:
Adjustments to reconcile profit (loss)
Depreciation expense	5,445	4,284
Losses (gains) on financial assets at fair value through profit or loss	3,778	(4,743)
Interest expense	94,486	87,177
Interest revenue	(4,116)	(8,895)
Dividend revenue	(5,924)	(6,024)
Share of (profit) loss of subsidiaries and associates accounted for using equity method	1,665	(1,876)
Losses (gains) on disposals of property, plant and equipment	117	(30,786)
Unrealized foreign exchange loss (gain)	1,787	(1,777)
Fair value adjustment gains on investment properties	(129,540)	(158,487)
Net changes in operating assets and liabilities
Accounts receivable	668	(668)
Other receivables	1,209	(2,408)
Inventory	(52,253)	(389,191)
Prepayments	(208)	(1,403)
Other current assets	17	(47)
Net defined benefit assets	(536)	(606)
Notes payable	(23)	(30)
Other payables	(7,911)	8,520
Other current liabilities	(10)	64
Other non-current liabilities	249	89
Cash outflows from (used in) operating activities	(111,194)	(463,266)

(Continued on next page)

TongHwa Corporation (Formerly Known as: Tong-Hwa Synthetic Fiber Co., Ltd.)

Individual Statements of Cash Flows (Continued)

For the Years Ended December 31, 2025 and 2024

Unit: NT$ thousands

Item	2025	2024
Interest received	4,116	8,895
Interest paid	(99,645)	(85,963)
Income tax paid	(193)	(855)
Net cash flows from (used in) operating activities	(206,916)	(541,189)
Cash flows from (used in) investing activities
Acquisition of financial assets at fair value through profit or loss	(254,945)	(344,682)
Disposal of financial assets at fair value through profit or loss	278,318	265,251
Acquisition of property, plant and equipment	(12,396)	(5,385)
Disposal of property, plant and equipment	1,295	31,414
Decrease in guarantee deposits paid	1,920	—
Dividends received	6,925	6,519
Net cash flows from (used in) investing activities	21,117	(46,883)
Cash flows from (used in) financing activities
Increase (decrease) in short-term loans	200,000	(100,000)
Proceeds from long-term debt	27,802	3,432,600
Repayments of long-term debt	—	(2,602,000)
Repayment of lease principal	(1,915)	(1,873)
Net cash flows from (used in) financing activities	225,887	728,727
Effect of exchange rate changes on cash and cash equivalents	(1,787)	1,777
Net increase in current cash and cash equivalents	38,301	142,432
Cash and cash equivalents at beginning of period	503,650	361,218
Cash and cash equivalents at end of period	$ 541,951	$ 503,650

(Please refer to the attached notes to the individual financial statements.)

Chairman: Lin Chuang-Ju Manager: Lin Chuang-Yeh Account Officer: Yeh Yan-Ling

TongHwa Corporation (Formerly Known as: Tong-Hwa Synthetic Fiber Co., Ltd.)
Notes to the Individual Financial Statements
For the Years Ended December 31, 2025 and 2024
(expressed in thousands of New Taiwan Dollars, unless otherwise specified)

Company History
TongHwa Corporation (formerly known as “Tong-Hwa Synthetic Fiber Co., Ltd.”, changed its name to “TongHwa Corporation” on October 6, 2022, hereinafter referred to as “the Company”) was established on March 2, 1970, in accordance with the Company Act and other relevant laws and regulations. The main business activities include the trading of “acrylic staple and tow”, real estate leasing, and real estate development, etc.
The Company’s stock has been listed on the Taiwan Stock Exchange since February 14, 1977.
The individual financial statements are presented in New Taiwan Dollar, the functional currency of the Company.
Date and Procedures of Approval of Financial Report
This individual financial report was approved by the Board of Directors on March 5, 2026.
Application of Newly Issued and Revised Standards and Interpretations
(1) Effects of the adoption of new and amended IFRSs endorsed by the Financial Supervisory Commission (the “FSC”)
The following table summarizes newly issued, revised, and amended

standards and interpretations of the IFRSs endorsed and made into effect by the FSC in 2025:

Newly issued, revised or amended standards and interpretations	Effective date by IASB
Amendments to IAS 21 “Lack of Exchangeability”	January 1, 2025

The aforementioned standards and interpretations will not have a material impact on the Company’s financial position and performance.

(2) Effects of newly issued and revised IFRSs endorsed by the FSC but not yet adopted

The following table summarizes newly issued, revised, and amended standards and interpretations of the IFRSs endorsed and made into effect by the FSC in 2026:

Newly issued, revised or amended standards and interpretations	Effective date by IASB
Amendments to IFRS 9 and IFRS 7 “Amendments to Classification and Measurement of Financial Instruments”	January 1, 2026
Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”	January 1, 2026
IFRS 17 “Insurance Contracts”	January 1, 2023
Amendments to IFRS 17 “Insurance Contracts”	January 1, 2023
Amendments to IFRS 17 “Initial Application of IFRS 17 and IFRS 9 – Comparative Information”	January 1, 2023
Annual Improvements to IFRSs – Volume 11	January 1, 2026

The aforementioned standards and interpretations will not have a material impact on the Company’s financial position and performance.

(3) Effect of IFRSs issued by IASB but not yet endorsed by the FSC

The following table summarizes the newly issued, revised, and amended standards and interpretations of the IFRSs issued by the International Accounting Standards Board (IASB) but not yet endorsed by the FSC:

Newly issued, revised or amended standards and interpretations	Effective date by IASB
Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and Its Associate or Joint Venture Assets”	To be decided by IASB
IFRS 18 “Presentation and Disclosure of Financial Statements”	January 1, 2027 (Note)
IFRS 19 “Subsidiaries without Public Accountability: Disclosures”	January 1, 2027
Amendments to IAS 21 “Translation to a Hyperinflationary Presentation Currency”	January 1, 2027

Note: In a press release dated September 25, 2025, the FSC announced that public companies shall apply IFRS 18 starting from 2028. Furthermore, if an enterprise wishes to early adopt IFRS 18, it may elect to do so upon the endorsement by the FSC.

Except for the following explanation, the Company has evaluated that the aforementioned standards and interpretations do not have a material impact on its financial position and performance.

IFRS 18 “Presentation and Disclosure of Financial Statements” replaces IAS 1 and updates the framework of the statement of comprehensive income, introduces new disclosures for management performance measures, and strengthens the principles of aggregation and disaggregation applied to primary financial statements and notes.

4. Summary of Significant Accounting Policies

(1) Compliance statement

The accompanying individual financial statements have been prepared in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

(2) Basis of preparation

Except for financial instruments, investment properties measured at fair value, and net defined benefit assets recognized at fair value, less the plan assets of defined benefit plans, these individual financial statements are prepared on a historical cost basis.

The preparation of individual financial statements requires the use of significant accounting estimates, and the application of the accounting

policies of the Company also requires the judgment of management, involving items of high judgment or complexity and estimates related to the individual financial statements. Please refer to Note 5 for details.

In preparing the individual financial statements, the equity method is used to account for investments in subsidiaries and associated companies. To ensure that current profit and loss, other comprehensive income, and equity in the individual financial statement are the same as those attributable to the owners of the Company in the consolidated financial statements for the current year, several accounting treatment differences between individual basis and consolidated basis are adjusted, including “investments accounted for using equity method”, “share of profit or loss of subsidiaries and associates accounted for using equity”, “share of other comprehensive income of subsidiaries and associated companies accounted for using equity method”, and related equity items.

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

i. An asset is classified as current if it meets one of the following criteria; an asset not classified as current is classified as non-current:

(i) Expected to be realized during the normal operating cycle or intended to be sold or consumed.

(ii) Held primarily for trading purposes.

(iii) Expected to be realized within 12 months after the balance sheet date.

(iv) Cash or cash equivalents, unless there are restrictions on their exchange or use in settlement of liabilities for at least 12 months after the balance sheet date.

ii. A liability is classified as current if it meets one of the following criteria; a liability not classified as current is classified as non-current:

(i) Expected to be settled in the normal business cycle.
(ii) Held primarily for trading purposes.
(iii) Due for settlement within 12 months from the balance sheet date. (Even if a long-term refinancing or rescheduling agreement has been completed after the balance sheet date and before the adoption of the financial statements, it is still a current liability.)
(iv) Have no substantive rights at the balance sheet date to defer settlement until at least 12 months after the balance sheet date.

(4) Foreign currencies

While preparing individual financial statements, for those entities trading in currencies other than the functional currency of the Company, foreign currencies are converted into the functional currency at the exchange rate on the transaction date.

Foreign currency monetary items are converted at the closing exchange rate as on the balance sheet date. The exchange differences arising from the settlement of monetary items or the translation of monetary items are accounted for as current profit or loss.

Foreign currency non-monetary items measured at fair value are translated at the exchange rates at the date the fair value is determined, and the resulting conversion differences are listed in the current profit and loss. However, if the fair value change is recognized in other comprehensive gains and losses, the resulting conversion differences are listed in other comprehensive profit and loss.

Foreign currency non-monetary items measured at historical cost are translated at the exchange rate on the transaction date and will not be converted again.

(5) Inventory

Premises to be constructed, under construction, and for sale are recorded at acquisition cost. Land held for future development is reclassified as construction in progress during active development, and the related interest is capitalized during the period from the time of active development or construction to the time of completion. Inventories at the end of the period are measured at the lower of cost or net realizable value. Comparisons of the lower of cost or net realizable value are made on an item-by-item basis. Net realizable value is defined as the estimated selling price minus the estimated costs to be incurred until completion and the estimated costs to complete the sale.

If the buildings acquired in exchange for land under a joint construction and allocation of housing units contract are classified as buildings and land held for sale, no gain or loss on the exchange shall be recognized at the time of exchange, and revenue shall be recognized only when the buildings and land held for sale are sold to the buyer.

(6) Investments accounted for using equity method – subsidiary

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

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

Under the equity method, investments are initially recognized at cost. After acquisition, the carrying amount is adjusted for the Company’s share of the subsidiary’s profit or loss and other comprehensive income, as well as dividend distributions. In addition, changes in the equity of subsidiaries that the Company is entitled to are recognized based on the shareholding ratio.

A change in the ownership interest of the Company in a subsidiary that does not result in a loss of control is accounted for as an equity transaction. The

difference between the carrying amount of investment and the fair value of the consideration paid or received is recognized directly in equity.

The Company will continue recognizing further losses in proportion to its shareholding when its share of losses in an subsidiary equals or exceeds its interest in that company (including the carrying amount of the subsidiary under the equity method and other long-term interests substantively accounted for as components of the net investment in the subsidiary).

The excess of the acquisition cost over the Company's share of the net fair value of identifiable assets and liabilities of the subsidiary constituting a business at the acquisition date is recognized as goodwill, which is included in the carrying amount of the investment and is not amortized. The excess of the Company's share of the net fair value of identifiable assets and liabilities of the subsidiary constituting a business at the acquisition date over the acquisition cost is recognized as current income.

When the Company assesses impairment, it considers the cash-generating unit as a whole in the financial report and compares its recoverable amount with the carrying amount. If the recoverable amount of the assets subsequently increases, the reversal of the impairment loss shall be recognized as a gain. However, the carrying amount of the assets after the reversal of the impairment loss shall not exceed the carrying amount of the assets that would have been determined without recognizing the impairment loss, less any amortization that would have been recognized. Impairment loss attributable to goodwill cannot be reversed in subsequent periods.

When control over a subsidiary is lost, the Company measures its remaining investment in the former subsidiary at fair value on the date of loss of

control. The difference between the fair value of the remaining investment and any disposal proceeds and the carrying amount of the investment on the date of loss of control is recognized in the current profit or loss. In addition, the Company accounts for all amounts recognized in other comprehensive income or loss in relation to this subsidiary on the same basis as the Company would be required to follow if it were to dispose of the related assets or liabilities directly.

Unrealized gains or losses on upstream transactions with subsidiaries are eliminated in the consolidated financial statements. Gains or losses resulting from counter-current and side-current transactions between the Company and its subsidiaries are recognized in the individual financial statements exclusively to the extent that they are not related to the interest of the Company in the subsidiaries.

(7) Investments accounted for using equity method – associates

Associates refer to companies over which the Company has significant influence but are neither subsidiaries nor joint ventures.

The Company uses the equity method for investments in associates.

Under the equity method, investments in associates are initially recognized at cost. After acquisition, the carrying amount is adjusted for the Company's share of the associates' profit or loss and other comprehensive income, as well as dividend distributions. In addition, changes in the equity of associates that the Company is entitled to are recognized based on the shareholding ratio.

If the Company does not subscribe in proportion to its ownership when the associate issues new shares, resulting in a change in the ownership that causes an increase or decrease in the equity value of the investment, the

amounts of such increases or decreases are adjusted to capital surplus – changes in the equity of associates recognized under the equity method and to the investment using the equity method. However, if the failure to subscribe or acquire in accordance with the shareholding ratio results in a reduction in the equity of the associate, the amount recognized in other comprehensive income relating to the associate is reclassified in proportion to the reduction and accounted for on the same accounting basis as if the associate had directly disposed of the related assets or liabilities. If the aforementioned adjustment shall be debited to capital surplus, and the balance of capital surplus arising from investments using the equity method is not sufficient, the difference is debited to retained earnings.

The Company will no longer recognize further losses once its share of losses in an associated company equals or exceeds its interest in that company (including the carrying amount of the investment in the associate under the equity method and other long-term interests substantively accounted for as components of the net investment in the associated). The Company recognizes additional losses and liabilities only to the extent that legal or constructive obligations have been incurred or payments have been made on behalf of the related party.

The Company assesses impairment by treating the entire carrying amount of an investment, including goodwill, as a single asset and comparing the recoverable amount to the carrying amount. The impairment loss recognized is not allocated to any individual assets forming part of the carrying amount of the investment, including goodwill. Any reversal of an impairment loss is recognized within the scope of the increase in the recoverable amount of the investment.

The Company will no longer adopt the equity method effective from the date when its investment is no longer considered an associate. The retained interest in the former associate is measured at fair value. The difference between the fair value and the disposal price, as well as the carrying amount of the investment at the date when the equity method ceases to be adopted, is recognized in profit or loss for the current year. Furthermore, all amounts previously recognized in other comprehensive income related to the associate are accounted for on the same basis as if the associate had directly disposed of the related assets or liabilities.

Gains or losses resulting from counter-current, downstream, and side-current transactions between the Company and its associates are recognized in the individual financial statements exclusively to the extent that they are not related to the interest of the Company in the associates.

(8) Property, plant and equipment

Property, plant, and equipment are recognized as cost and subsequently measured at cost less accumulated depreciation and accumulated impairment losses.

Property, plant, and equipment under construction are recognized as cost less accumulated impairment losses. The cost includes professional fees and borrowing costs that are eligible for capitalization.

Samples produced by testing the functionality of these assets before reaching their intended use are measured at the lower of cost or net realizable value, and the selling price and cost are recognized in profit or loss.

These assets are classified as property, plant, and equipment. The assets are depreciated when completed and ready for their intended use.

With the exception of owned land, which is not depreciated, property, plant and equipment are depreciated separately on a straight-line basis over their

useful lives for each significant portion. The Company reviews the estimated useful lives, residual values, and depreciation methods at least at each year-end and defers the effects of changes in applicable accounting estimates.

When property, plant, and equipment are derecognized, the difference between the net disposal price and the carrying amount of the asset is recognized under other gains and losses.

(9) Investment properties

Investment property refers to real estate held to earn rent or for capital appreciation, or both. Investment property also includes land held for future use, the purpose of which has not yet been determined. Investment property is initially measured at cost (including transaction costs) and subsequently measured at fair value, with any changes in fair value recognized in profit or loss during the period.

When a property previously classified as property, plant and equipment is reclassified as investment property on cessation of its use for own purposes, any difference between its carrying amount and fair value is recognized in other comprehensive income and accumulated in the revaluation surplus under equity. When the asset is disposed of, the balance is transferred directly to retained earnings.

If a house obtained through a land-for-house swap under a co-construction housing agreement is classified as investment property and the exchange has commercial substance, any gain or loss on the exchange is recognized at the time of the exchange.

When investment property is derecognized, any difference between the net disposal proceeds and the carrying amount of the asset is recognized in other gains and losses.

(10) Impairment of non-financial assets

At each balance sheet date, the Company assesses whether there is any indication that property, plant and equipment and right-of-use assets may be impaired. If such indications are found, the recoverable amount of the asset is estimated. If the recoverable amount of an individual asset cannot be estimated, the Company will estimate the recoverable amount of the cash-generating unit to which the asset belongs.

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 a cash-generating unit is less than its carrying amount, the carrying amount of the asset or the cash-generating unit is reduced to its recoverable amount, and an impairment loss is recognized in other gains and losses.

When an impairment loss is reversed, the carrying amount of the asset or cash-generating unit is increased to the revised recoverable amount, but the increased carrying amount does not exceed the carrying amount that would have been determined (net of amortization or depreciation) had no impairment loss been recognized for the asset or cash-generating unit in prior years. The reversal of impairment loss is recognized in other gains and losses.

(11) Financial instrument

Financial assets and financial liabilities are recognized on individual balance sheet when the Company become a party to the contractual terms of the instrument.

When initially recognizing financial assets and financial liabilities, if the financial asset or financial liability is not measured at fair value through profit or loss, it is measured at fair value with the transaction costs directly attributable to the acquisition or issuance of the financial asset or financial liability added to the carrying amount. Transaction costs that are directly

attributable to the acquisition or issuance of financial assets or financial liabilities measured at fair value through profit or loss are immediately recognized in profit or loss.

i. Financial assets

The convention for financial asset transactions is to recognize and derecognize them on the transaction date in the accounting records.

(i) Measurement types

The types of financial assets held by the Company are financial assets at fair value through profit or loss, financial assets at amortized cost, and equity instruments at fair value through other comprehensive income.

A. Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss are financial assets that are mandatorily measured at fair value through profit or loss. Such financial assets include equity instrument investments that are not specified to be measured at fair value through other comprehensive profits and losses, and debt instrument investments that cannot meet the criteria of measuring assets at amortized cost or at fair value through other comprehensive profit and loss.

Financial assets at fair value through profit or loss are measured at fair value, and their dividends, interest, and the profit or loss generated by remeasurement are recognized in profit or loss.

B. Financial assets at amortized cost

The financial assets held by the Company are classified as measured at amortized cost if they meet both of the following

conditions:

(a) Held in a business model whose objective is to hold the financial assets in order to collect contractual cash flows; and
(b) Cash flow generated from contractual terms on specified dates that are solely payments of principal and interest on the outstanding principal amount.

Financial assets at amortized cost (including cash and cash equivalents, accounts receivable at amortized cost, other receivables, and guarantee deposits paid) are, after initial recognition, measured at the total carrying amount determined by the effective interest method, less any impairment loss. Any foreign exchange gains or losses are recognized in profit or loss.

Except for the following two circumstances, interest revenue is calculated by multiplying the total carrying amount of financial assets by the effective interest rate:

(a) For credit-impaired financial assets purchased or originated, interest revenue is calculated using the effective interest rate adjusted for credit, multiplied by the amortized cost of the financial assets.
(b) For financial assets that are not initially credit-impaired but subsequently become credit-impaired, interest revenue is calculated using the effective interest rate multiplied by the amortized cost of the financial assets from the next reporting period after the credit impairment.

Cash equivalents, including term deposits and repurchase agreements that are highly liquid, convertible to a fixed amount of cash within three months from the acquisition date, and have minimal risk of value changes, are used to meet short-term cash commitments.

C. Equity investments at fair value through other comprehensive income

Upon initial recognition, the equity investments that are not held for trading or acquired through a business combination with a contingency, the Company may irrevocably elect to designate them as measured at fair value through other comprehensive income.

Equity investments at fair value through other comprehensive income are measured at fair value with subsequent fair value changes reported in other comprehensive income and accumulated in other equity. When disposed of, the cumulative gain or loss is reclassified directly to retained earnings and not recognized in profit or loss.

Dividends received on equity investments at fair value through other comprehensive income are recognized in profit or loss upon the establishment of the right to receive payment, unless the dividends clearly represent a recovery of part of the cost of the investment.

(ii) Impairment of financial assets

A. On each balance sheet date, a loss allowance for expected credit

loss is recognized for financial assets at amortized cost (including accounts receivable) and impairment loss of lease payments receivable.

B. Allowance for credit losses on accounts receivable and lease receivables is recognized based on expected credit losses over the remaining lifetime. For other financial assets, whether the credit risk has increased significantly upon initial recognition shall be assessed. If not, a loss allowance is recognized at an amount equal to the expected credit loss of a financial instrument within 12 months after the reporting date.

C. The expected credit losses are a weighted average credit loss based on the risk of default. Twelve-month expected credit losses represent the expected credit losses arising from possible defaults within 12 months after the reporting date for financial instruments, and expected credit losses over the remaining lifetime represent the expected credit losses arising from all possible defaults during the expected remaining lifetime of the financial instruments.

For internal credit risk management purposes, the Company determines that a financial asset has defaulted in the following circumstances without considering the collateral held:

(a) When there is internal or external information indicating that the debtor is no longer able to settle the debt.

(b) If a payment is overdue for more than 120 days, the default criteria can only be postponed if there is reasonable and

verifiable information indicating that the revised criteria are more appropriate.

The impairment loss of all financial assets is recognized by reducing their carrying amounts through an allowance account. However, for debt instruments at fair value through other comprehensive income, the impairment loss is recognized in other comprehensive income and does not reduce the carrying amount.

(iii) Derecognition of financial assets

The Company only derecognizes financial assets when the contractual rights to cash flows from the financial assets have expired or when the financial assets have been transferred, and almost all risks and rewards of ownership have been transferred to other enterprises.

When financial assets at amortized cost are derecognized as a whole, the difference between the carrying amount and the consideration received is recognized in profit or loss. When equity instruments at fair value through other comprehensive income are derecognized as a whole, the cumulative gains and losses are directly transferred to retained earnings in other comprehensive income and are not reclassified to profit or loss.

ii. Financial liabilities and equity instruments

(i) Classification of liabilities or equity

The debt and equity instruments issued by the Company are classified as financial liabilities or equity instruments based on their contractual terms and the definition of financial liabilities and equity.

Equity instruments refer to any contract that represents the residual

interest in the assets of the Company after deducting all liabilities. The equity instruments issued by the Company are recognized at the amount received, less any directly attributable issuance costs.

The redemption of equity instruments by the Company is recognized in equity and deducted from equity. Purchases, sales, issuances, or cancellations of equity instruments of the Company are not recognized in profit or loss.

(ii) Financial liabilities

Financial liabilities that are not held for trading or designated at fair value through profit or loss (including payables) are initially measured at fair value plus directly attributable transaction costs and subsequently measured using the effective interest method at amortized cost.

(iii) Derecognition of financial liabilities

When a financial liability is derecognized, any difference between the carrying amount of the financial liability and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in the income statement.

(12) Revenue recognition

i. Product sales revenue

Product sales revenue is derived from the sale of Acrylic Staple and Tow products. Sales revenue from product is recognized when control of the product is transferred to the customer, which occurs when the product is delivered to the customer, and the Company has no remaining contractual obligations that could affect customer acceptance of the product. As the

customer has established the price of the product and has the right to use it and bears the primary responsibility for reselling it and assuming the risk of obsolescence before the product arrives at the designated location or port, the Company recognizes revenue and accounts receivable at that point in time. Prepayments received before the product is shipped are recognized as contract liabilities.

Product sales revenue is measured at the fair value of the consideration received or receivable, net of estimated customer returns, discounts, and other similar allowances. Based on historical experience and other known factors, the Company estimates sales returns and allowances that may occur and records refund liabilities and related rights to return products.

ii. Rental revenue

Lease payments, net of lease incentives, are recognized as revenue on a straight-line basis over the relevant lease term according to the realization period of the lease contract.

(13) Lessee’s lease

On the contract inception date, the Company assesses whether the contract is or contains a lease.

Except for leases of low-value assets and short-term leases for which an exemption is applied, lease payments for other leases are recognized as an asset and a liability on the lease commencement date.

The right-of-use assets are measured at their original cost (including the original measurement amount of lease liabilities, lease incentives paid or received before the lease commencement date, direct costs incurred, and estimated costs to restore the underlying asset). Subsequently, they are measured at cost less cumulative depreciation and accumulated impairment losses, with adjustments for the re-measurement of lease liabilities. Right-of-use assets are separately expressed on individual balance sheets.

Depreciation is recognized on a straight-line basis over the shorter of the useful life and lease term from the lease commencement date for the right-of-use assets.

The lease liability is initially measured at the present value of the lease payments. If the implicit rate of interest in the lease is readily determinable, the lessee uses that rate to discount the lease payments. If the interest rate is not easily determinable, the incremental borrowing rate of the lessee shall be used.

Subsequently, the lease liability is measured using the effective interest method, with interest expense recognized over the lease term. If there is a change in the lease term, the Company remeasures the lease liability and adjusts the carrying amount of the right-of-use asset accordingly. However, if the carrying amount of the right-of-use asset has been reduced to zero, any remaining remeasurement amount is recognized in profit or loss. For lease modifications that are not treated as separate leases, the remeasurement of the lease liability due to lease scope reduction is to reduce the right-of-use asset and to recognize the profit and loss of the partial or full termination of the lease. The remeasurement of the lease liability due to other modifications is to adjust the right-of-use asset. The lease liability is presented separately in the individual balance sheet.

(14) Employee benefits

i. Short-term employee benefits

The liability for short-term employee benefits is measured as the non-discounted amount expected to be paid in exchange for services rendered by employees.

ii. Pension

(i) Defined contribution plans

For defined contribution plans, the pension benefits that shall be provided based on the obligation incurred are recognized as pension

expenses for the period. Prepaid contributions are recognized as assets within the scope of refundable cash or reduction of future benefits.

(ii) Defined benefit plans

The defined benefit cost of a defined benefit pension plan (including service cost, net interest, and remeasurements) is calculated using the projected unit credit method. Service cost (including current service cost, past service cost, and settlement gains or losses) and the net interest on net defined benefit liability (asset) are recognized as employee benefit expenses when they are incurred and settled. Remeasurements (including actuarial gains and losses, changes in the effect of the asset ceiling, and the return on plan assets excluding interest) are recognized in other comprehensive income when they occur and are included in retained earnings, and are not subsequently reclassified to profit or loss.

Net defined benefit liability (asset) is the provision (surplus) for defined benefit pension plans. The net defined benefit assets cannot exceed the present value of the amounts refundable from the plan or reducible future contributions.

iii. Other long-term employee benefits

The accounting treatment for other long-term employee benefits is the same as that for defined benefit pension plans, except that related remeasurements are recognized in profit or loss.

iv. Termination benefits

The Company recognizes a liability for termination benefits when an offer is made that cannot be withdrawn or when it recognizes related restructuring costs, whichever is earlier.

(15) Borrowing costs

Borrowing costs that are directly attributable to the acquisition, construction, or production of a qualifying asset are capitalized as part of the cost of that asset until substantially all the activities necessary to prepare

the asset for its intended use or sale are complete.

Investment income earned from the temporary investment of specific borrowings prior to the occurrence of qualifying capital expenditures is deducted from the borrowing costs eligible for capitalization.

Except as mentioned above, all other borrowing costs are recognized in profit or loss in the period in which they are incurred.

(16) Income tax

Income tax expenses are the sum of current taxes and deferred taxes.

i. Current income tax

The Company determines the current income (loss) in accordance with the Income Tax Act of the Republic of China and calculates the income tax payable (recoverable) accordingly.

Any additional income tax on undistributed earnings calculated in accordance with the Income Tax Act of the Republic of China is recognized and accounted for in the annual shareholders' meeting.

Adjustments to income tax payable from prior years are recognized as current income tax.

ii. Deferred income tax

Deferred income tax is calculated based on the temporary differences between the carrying amounts of assets and liabilities and their tax bases for calculating taxable income. Deferred income tax liabilities are generally recognized for all temporary differences that will result in taxable amounts, while deferred income tax assets are recognized when it is probable that taxable income will be available in the future to offset the temporary differences or tax loss carry forwards.

Temporary differences related to investments in subsidiaries and associated companies are recognized as deferred tax liabilities, except when the Company can control the timing of the temporary difference

reversal, and the difference is not likely to reverse in the foreseeable future. Any deductible temporary differences related to such investments are recognized as deferred tax assets only when it is probable that taxable income will be available in the future to realize the temporary differences and within the range of expected reversal in the foreseeable future.

The carrying amount of deferred tax assets is reassessed at each balance sheet date and is reduced for any amounts that are unlikely to be realized. The deferred tax assets, which were not originally recognized, are also reviewed on every balance sheet date and recognized to the extent that it is probable that sufficient taxable profits will be available to allow all or part of the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured based on the tax rates that are expected to apply when the assets are realized, or the liabilities are settled, using tax rates that have been enacted or substantively enacted by the balance sheet date. The measurement of deferred tax assets and liabilities reflects the tax consequences that would arise from the manner in which the Company expects to recover or settle the carrying amounts of its assets and liabilities. If an investment property at fair value is not a depreciable asset, or the economic benefits of the asset are not expected to be consumed over time, the Company assumes that the asset will be recovered through sale at the carrying amount.

iii. Current and deferred income tax

Current and deferred income tax are recognized in profit or loss, except for those items that are recognized in other comprehensive income or directly in equity, in which case the current and deferred income tax

related to those items are recognized separately in other comprehensive income or directly in equity.

Sources of Significant Accounting Judgments, Estimates, and Assumptions

Uncertainties

When adopting the accounting policies as described in Note 4, the management must make relevant judgments, estimates, and assumptions based on historical experience and other relevant factors for assets and liabilities whose carrying amounts are not easily obtained from other sources. The estimates and related assumptions are based on historical experience and other relevant factors. Actual results may differ from estimates.

The estimates and fundamental assumptions are continually reviewed. If the revision of estimates only affects the current period, it will be recognized in the accounting estimate revision for the current period. If the revision of accounting estimates affects both the current and future periods, it will be recognized in the estimate revision for the current and future periods.

The sources of significant accounting judgments, estimates, and assumptions uncertainties are as follows:

(1) Valuation of inventories

As inventories must be measured at the lower of cost and net realizable value, the Company assesses the amount by which the market selling price of inventories is lower than cost at the reporting date and writes down the cost of inventories to their net realizable value. This inventory valuation is primarily based on the estimated selling prices under the market conditions at that time.

(2) Impairment assessment of non-financial assets

In the process of asset impairment assessment, the Company relies on subjective judgment and, based on asset usage patterns and industry characteristics, determines the independent cash flows, useful lives of assets, and potential future income and expenses of specific asset groups. Any changes in estimates resulting from changes in economic conditions or corporate strategies may lead to material impairment in the future or the reversal of previously recognized impairment losses.

(3) Fair value of the investment property

Due to the fact that investment properties are subsequently measured at fair value using the cost approach, based on the land development analysis, the investment properties held by the Group consist of land. Therefore, the Company must engage experts to use their professional judgment and estimation to determine the fair value of the investment properties as of the balance sheet date. The Company will adjust the value to fair value based on the real estate appraisal report issued by the experts. The valuation of these investment properties mainly relies on the real estate appraisal report issued by the experts, and may be affected by changes in the estimated total sales amount, profit margin, asset interest rate, and expert judgment and estimation in a specific period in the future.

6. Explanation of Significant Accounting Items

(1) Cash and cash equivalents

	December 31, 2025	December 31, 2024
Cash on hand	$ 40	$ 40
Bank checks and demand deposits	541,911	166,165
Cash equivalents (investments with maturities within 3 months)
Bank fixed deposits	—	327,350
Repurchase agreements	—	10,095
Total	$ 541,951	$ 503,650

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

	December 31, 2025	December 31, 2024
Current
Mandatorily measured at fair value through profit or loss
Listed stocks	$ 55,035	$ 84,972
Non-current
Mandatorily measured at fair value through profit or loss
Fund	$ 105,946	$ 104,173

(3) Financial assets at fair value through other comprehensive income

Investments in equity instruments

	December 31, 2025	December 31, 2024
Non-current
Local investment
Unlisted stocks	$ 4,261	$ 5,550

The Company has invested in the common shares of the above-mentioned company for the purpose of the medium- to long-term investment strategy and expects to generate profits through long-term investment. The management of the Company believes that if the short-term fair value fluctuations of such investments are recognized in profit or loss, it would

not be consistent with the aforementioned long-term investment plan. Therefore, we have chosen to designate such investments as measured at fair value through other comprehensive income.

(4) Accounts receivable

	December 31, 2025	December 31, 2024
Measured at amortized cost
Total carrying amount	$ —	$ 668
Less: Allowance for losses	—	—
	$ —	$ 668

i. The credit period for product sales is 30 to 120 days. The Company recognizes allowance for loss on accounts receivable based on lifetime ECLs. Lifetime ECLs are calculated using a provisioning matrix, which considers the customer's past default records and current financial condition, industry economic conditions, as well as GDP forecasts and industry outlook. As the historical experience of credit losses of the Company shows no significant difference in loss patterns among different customer groups, the provision matrix does not further distinguish customer groups and only determines the expected credit loss rate based on the overdue days of accounts receivable.

ii. The allowance for losses on accounts receivable measured by the Company according to the provision matrix is as follows:

	December 31, 2024
	Not overdue	Overdue 0 to 30 days	Overdue 31 to 60 days	Overdue 61 to 90 days	Over 91 days	Total
Expected credit loss rate	0%	0%	0%	0%	100%
Total carrying amount	$ 668	$ —	$ —	$ —	$ —	$ 668
Allowance for losses (lifetime ECLs)	—	—	—	—	—	—
Amortized cost	$ 668	$ —	$ —	$ —	$ —	$ 668

(5) Other receivables

	December 31, 2025	December 31, 2024
Receivable on securities settlement	$ 4,780	$ 1,787
Dividends receivable	55	161
Other receivables due from related parties	—	1,200
Others	—	9
	$ 4,835	$ 3,157

(6) Inventory

	December 31, 2025	December 31, 2024
Trading
Merchandise inventory	$ 599	$ 3,226
Construction
Land held for construction site	393,321	389,424
Land for floor area ratio transfer	7,033	—
Construction costs	22,825	—
Prepayments for floor area ratio (FAR)	26,446	—
Subtotal	449,625	389,424
Total	$ 450,224	$ 392,650

The inventories-related expenses for the period are as follows:

	2025	2024
Cost of goods sold	$ 4,686	$ 50,517
Gain from price recovery of inventory	(3,613)	(36,056)
Scrap loss	15	2,191
Total	$ 1,088	$ 16,652

The reversal of inventory write-downs for 2025 and 2024 was primarily due to the recovery of market prices and the sale of inventories for which valuation losses had been previously recognized, respectively.

ii. Major inventory details

(i) Land held for construction

Item	December 31, 2025	December 31, 2024
Xinzhoumei Section,	$ 393,321	$ 389,424

(ii) Land for floor area ratio transfer

Item	December 31, 2025	December 31, 2024
Multiple lot numbers including Fude Section, Xinyi District and Ren’ai Section, Da’an District	$ 7,033	$ —

(iii) Construction costs

Item	December 31, 2025	December 31, 2024
Xinzhoumei Section, Beitou District	$ 15,496	$ —
Yucheng Section, Nangang District	7,329	—
Total	$ 22,825	$ —

“Yucheng Section, Nangang” — The Company and its subsidiary, MRS company, entered into a joint construction agreement, whereby MRS company provides the land and the Company provides the funds for construction.

(iv) Prepayments for floor area ratio (FAR)

Item	December 31, 2025	December 31, 2024
Sub-section 3, Yanping Section, Datong District	$ 26,446	$ —

iii. The amount of capitalized interest on inventories and the average interest rate of the Company are as follows:

	2025	2024
Capitalized amount	$ 5,321	$ —
Average capitalization rate	3.15%	—

iv. For information on guarantees provided by the inventories – land held for construction, please refer to Note 8.

(7) Prepayments

	December 31, 2025	December 31, 2024
Prepayment for purchases	$ 513	$ —
Excess business tax paid	3,786	1,595
Prepaid admission fees	1,742	1,796
Prepaid soil testing service fee	—	2,520
Others	922	799
Total	$ 6,963	$ 6,710

(8) Investments accounted for using equity method

	December 31, 2025	December 31, 2024
Investment in subsidiaries	$ 461,754	$ 465,356
Investment in associates	12,288	11,246
Add: Credit balance of investments accounted for using equity method	20	—
Total	$ 474,062	$ 476,602

i. Investment in subsidiaries

Subsidiary	December 31, 2025		December 31, 2024
	Carrying amount	Shareholding %	Carrying amount	Shareholding %
Unlisted company
TongYe Investment CO., LTD.	$ (20)	90.00	$ 21	90.00
MRS company	448,947	100.00	451,068	100.00
Donghua Leasing Co., Ltd.	12,827	100.00	14,267	100.00
	$ 461,754		$ 465,356

ii. Investment in associates

Individual insignificant associates	December 31, 2025		December 31, 2024
	Carrying amount	Shareholding %	Carrying amount	Shareholding %
Unlisted company
CETECH CO., LTD.	$ 12,288	12.44	$ 11,246	12.44

(i) Due to serving as a corporate director of an associated company with significant influence, the equity method is adopted to evaluate it.

(ii) The summarized information of individually insignificant associates is as follows:

	2025	2024
The Company’s share
Current net income	$ 1,042	$ 1,660
Total comprehensive income	$ 1,042	$ 1,660

(9) Property, plant and equipment

Item	2025
	Beginning balance	Additions	Disposal	Reclassification	Ending balance
Cost
Land	$ 684,282	$ —	$ —	$ (45)	$ 684,237
Buildings and structures	269,484	—	—	—	269,484
Machinery and equipment	16,756	—	—	—	16,756
Utilities equipment	2,807	1,150	(2,317)	—	1,640
Transportation equipment	11,090	10,727	(1,650)	—	20,167
Other equipment	4,410	91	—	—	4,501
Unfinished engineering	—	780	—	—	780
Subtotal	988,829	12,748	(3,967)	(45)	997,565
Accumulated depreciation
Buildings and structures	240,369	—	—	—	240,369
Machinery and equipment	10,375	—	—	—	10,375
Utilities equipment	2,038	175	(1,903)	—	310
Transportation equipment	3,185	3,081	(652)	—	5,614
Other equipment	1,635	324	—	—	1,959
Subtotal	257,602	3,580	(2,555)	—	258,627
Accumulated impairment
Land	6,205	—	—	—	6,205
Buildings and structures	29,115	—	—	—	29,115
Machinery and equipment	6,381	—	—	—	6,381
Utilities equipment	240	—	—	—	240
Other equipment	781	—	—	—	781
Subtotal	42,722	—	—	—	42,722
Net amount	$ 688,505	$ 9,168	$ (1,412)	$ (45)	$ 696,216

Item	2024
	Beginning balance	Additions	Disposal	Reclassificatio n	Ending balance
Cost
Land	$ 684,282	$ —	$ —	$ —	$ 684,282
Buildings and structures	291,383	—	(21,899)	—	269,484
Machinery and equipment	78,792	—	(62,036)	—	16,756
Utilities equipment	28,111	557	(25,861)	—	2,807
Transportation equipment	16,519	3,270	(8,699)	—	11,090
Other equipment	8,919	1,558	(6,067)	—	4,410
Unfinished engineering	11,758	—	(11,758)	—	—
Subtotal	1,119,764	5,385	(136,320)	—	988,829
Accumulated depreciation
Buildings and structures	262,263	—	(21,894)	—	240,369
Machinery and equipment	49,026	—	(38,651)	—	10,375
Utilities equipment	14,390	28	(12,380)	—	2,038
Transportation equipment	7,622	2,168	(6,605)	—	3,185
Other equipment	4,180	223	(2,768)	—	1,635
Subtotal	337,481	2,419	(82,298)	—	257,602
Accumulated impairment
Land	6,205	—	—	—	6,205
Buildings and structures	29,120	—	(5)	—	29,115
Machinery and equipment	29,766	—	(23,385)	—	6,381
Utilities equipment	13,721	—	(13,481)	—	240
Transportation equipment	1,466	—	(1,466)	—	—
Other equipment	4,080	—	(3,299)	—	781
Unfinished engineering	11,758	—	(11,758)	—	—
Subtotal	96,116	—	(53,394)	—	42,722
Net amount	$ 686,167	$ 2,966	$ (628)	$ —	$ 688,505

i. The property, plant and equipment of the Company are depreciated on a straight basis over the following years, as shown below:

Buildings and structures

Main building 21 to 46 years
Others 2 to 16 years
Machinery and equipment 3 to 20 years
Utilities equipment 3 to 9 years
Transportation equipment 5 years
Other equipment 3 to 15 years

ii. For information on the collateral for property, plant and equipment, please refer to Note 8.

(10) Leasing agreement – lessee

i. Right-of-use asset

	December 31, 2025	December 31, 2024
Carrying amount of right-of-use assets
Buildings	$ 9,170	$ 11,035
	2025	2024
Depreciation expense of right-of-use assets
Buildings and structures	$ 1,865	$ 1,865

Apart from the above-mentioned depreciation expense, the right-of-use assets of the Company did not experience significant subleasing and impairment in the years 2025 and 2024.

ii. Lease liabilities

	December 31, 2025	December 31, 2024
Carrying amount of lease liabilities
Current	$ 1,960	$ 1,916
Non-current	$ 7,469	$ 9,428

Discount rate intervals for lease liabilities are as follows:

	December 31, 2025	December 31, 2024
Buildings	2.23%	2.23%

iii. Significant leasing activities and terms

The Company leases buildings for office use for periods of 9 years and 6 months. At the end of the lease term, the Company has no preferential purchase rights for the leased buildings.

iv. Other lease information

	2025	2024
Short-term lease expenses	$ 158	$ 240
Low-value asset lease expenses	$ 77	$ 78
Total cash outflows for leases	$ 2,385	$ 2,468

The Company has chosen to exempt the recognition of related right-of-use assets and lease liabilities for short-term parking spaces and several office equipment leases that meet the low-value asset lease criteria.

(11) Leasing agreement – lessor

i. The asset the Company leased for business purposes is the land in Shitou Section, Chungli, under a lease contract with a term of three years. The lease contract is negotiated on an individual basis and contains various terms and conditions. To ensure the use of the leased asset, the lessee is usually required not to sublease, sublet, or pledge the leased property in whole or in part.

ii. Based on the operating lease agreement, the Company recognizes the following benefits:

	2025	2024
Lease income	$ 229	$ 215

iii. The analysis of the total amount of the lease payments receivable on the due date of the operating lease is as follows:

	December 31, 2025	December 31, 2024
First year	$ 95	$ 95
Second year	95	95
Third year	—	95
Total	$ 190	$ 285

(12) Investment property

Investment property at fair value

	Land
Balance as of January 1, 2025	$ 2,955,472
Fair value adjustment gain	129,540
Balance as of December 31, 2025	$ 3,085,012
	Land
Balance as of January 1, 2024	$ 2,796,985
Fair value adjustment gain	158,487
Balance as of December 31, 2024	$ 2,955,472

i. The investment property is valued by an external appraisal firm and measured at fair value on a recurring basis. The fair value of investment properties as of December 31, 2025 and 2024, was appraised using the land development analysis method by Cushman & Wakefield appraisers Hu Chun-Chun and Tsai Chia-He, who hold qualifications as real estate appraisers in the R.O.C..

Important assumptions in the real estate appraisal reports issued on

December 31, 2025 and 2024 are as follows:

	December 31, 2025	December 31, 2024
Estimated total sales amount
Donghua Section Land No. 033 and other lands	$ 5,780,560	$ 5,513,865
Donghua Section Land No. 005 and other lands	5,820,979	5,575,489
	$ 11,601,539	$ 11,089,354
Profit margin	13%	13%
Comprehensive interest rate on capital interest	3.51%	3.44%-3.47%

After considering relevant laws and regulations, the domestic macroeconomic outlook, local land use, and market conditions, the land or building area that can be sold after development is estimated to calculate the total sales amount.

ii. The investment properties of the Company were not leased out and did not generate income or incur gains or losses in the years 2025 and 2024.
iii. For information regarding investment property provided as collateral, please refer to Note 8.

(13) Short-term loans

	December 31, 2025	December 31, 2024
Secured bank loans	$ 200,000	$ —
Interest rate range	2.885%	—

For information regarding assets provided as collateral for short-term loans, please refer to Note 8.

(14) Other payables

	December 31, 2025	December 31, 2024
Salary and bonuses payable	$ 2,794	$ 2,868
Interest payable	7,020	6,858
Pension payable	182	175
Service fee payable	1,150	1,150
Insurance fee payable	482	459
Securities settlement payable	4,039	2,059
Equipment payable	352	—
Land brokerage fee payable	—	7,401
Others	2,133	2,599
Total	$ 18,152	$ 23,569

Other payables mainly consist of house tax, land value tax, freight, import and export expense, utilities expense, trust management expense, and regulatory fees.

(15) Long-term loans

Secured loans and terms	December 31, 2025	December 31, 2024
Union Bank of Taiwan
Repayment period after drawdown:
2024.05.17-2026.05.17	$ 2,902,000	$ 2,902,000
Repayment method: Pay interest monthly and repay the principal in full at maturity.
Union Bank of Taiwan
Repayment period after drawdown:
2024.07.12-2026.05.08	50,000	50,000
Repayment method: Pay interest monthly and repay the principal in full at maturity.
Union Bank of Taiwan
Repayment period after drawdown:
2024.07.15-2026.05.08	325,600	325,600
Repayment method: Pay interest monthly and repay the principal in full at maturity.
KGI Bank
Repayment period after drawdown:
2024.12.31-2026.12.31	155,000	155,000
Repayment method: Pay interest monthly and repay the principal in full at maturity.
KGI Bank
Repayment period after drawdown:
2025.02.14-2026.12.31	4,190	—
Repayment method: Pay interest monthly and repay the principal in full at maturity.
KGI Bank
Repayment period after drawdown:
2025.05.29-2026.12.31	13,885	—
Repayment method: Pay interest monthly and repay the principal in full at maturity.
KGI Bank
Repayment period after drawdown:
2025.07.07-2026.12.31	1,396	—
Repayment method: Pay interest monthly and repay the principal in full at maturity.
KGI Bank
Repayment period after drawdown:
2025.11.10-2026.12.31	8,331	—
Repayment method: Pay interest monthly and repay the principal in full at maturity.
Total amount of bank borrowing	3,460,402	3,432,600
Less: portion due within one year	(3,460,402)	—
Long-term loans	$ —	$ 3,432,600
Interest rate range	2.860%-3.201%	2.870%-3.146%

i. In May 2024, the Company signed a loan agreement with Union Bank of Taiwan, obtaining a medium-term secured line of credit of NT$4,052,000 thousand. The borrowing balances of the Company as of December 31, 2025 and 2024 were both NT$3,277,600 thousand.

ii. In October 2024, the Company signed a loan agreement with KGI Bank, obtaining a medium-term secured line of credit of NT$299,042 thousand. The borrowing balances of the Company as of December 31, 2025 and 2024 were NT$182,802 thousand and NT$155,000 thousand, respectively.

iii. For information regarding assets provided as collateral for long-term loans, please refer to Note 8.

(16) Other liabilities

	December 31, 2025	December 31, 2024
Current
Receipts under custody	$ 1,541	$ 1,521
Temporary receipts	136	136
Unearned receipts	140	170
Total	$ 1,817	$ 1,827
Non-current
Employee benefit – other long-term employee benefits	$ 767	$ 518
Guarantee deposits received	3	3
Total	$ 770	$ 521

Employee benefits – other long-term employee benefits are one-mace gold rings issued to the employees who have served for 15 years or more, and every five years thereafter.

(17) Post-employment benefits plan

i. Defined contribution plans

The Company has established an employee pension plan in accordance

with the “Labor Pension Act”, which is a government-regulated defined contribution plan, and contributes 6% of the employee’s monthly salary as pension to their individual account at the Labor Insurance Bureau. The Company recognized pension benefit expenses related to defined contribution plans of NT$1,084 thousand and 1,100 thousand for the years 2025 and 2024, respectively.

ii Defined benefit plans

The pension system implemented by the Company in accordance with the “Labor Standards Act” is a government-regulated defined benefit pension plan. The pension payment of employees is calculated based on their years of service and the average salary for the six months prior to the approved retirement date. The Company originally contributed 5% of the employee’s total monthly salary to pension savings, but in February 2025, it reduced the contribution to 2% and entrusted the Labor Pension Supervisory Committee to deposit the funds in a special account at the Bank of Taiwan under the name of the Committee. If the estimated balance in the account is insufficient to pay for employees who are expected to retire in the following year, a lump-sum payment for the difference will be made by March of the following year. The special account is managed by the Bureau of Labor Funds, Ministry of Labor, and the Company has no right to influence its investment management strategy.

The recognized defined benefit obligation and plan assets included in the balance sheet are as follows:

	December 31,2025	December 31,2024
Present value of defined benefit obligation	$ (18,571)	$ (17,790)
Fair value of plan assets	44,321	40,638
Net defined benefit assets	$ 25,750	$ 22,848

The changes in net defined benefit assets are as follows:

	Present value of defined benefit obligation	Fair value of plan assets	Net defined benefit assets
Balance as of January 1, 2025	$ (17,790)	$ 40,638	$ 22,848
Service cost
Interest (expense) income	(267)	613	346
Recognized in profit or loss	(267)	613	346
Remeasurement
Plan assets return (excluding amounts included in interest revenue or expenses)	—	2,880	2,880
Effects of financial assumptions changes	(257)	—	(257)
Experience adjustments	(257)	—	(257)
Recognized in other comprehensive income	(514)	2,880	2,366
Contributions to pension fund	—	190	190
Balance as of December 31, 2025	$ (18,571)	$ 44,321	$ 25,750

	Present value of defined benefit obligation	Fair value of plan assets	Net defined benefit assets
Balance as of January 1, 2024	$ (19,199)	$ 37,356	$ 18,157
Service cost
Interest (expense) income	(216)	422	206
Recognized in profit or loss	(216)	422	206
Remeasurement
Plan assets return (excluding amounts included in interest revenue or expenses)	—	3,349	3,349
Effects of financial assumptions changes	434	—	434
Experience adjustments	302	—	302
Recognized in other comprehensive income	736	3,349	4,085
Contributions to pension fund	—	400	400
Pension payments	889	(889)	—
Balance as of December 31, 2024	$ (17,790)	$ 40,638	$ 22,848

The Company is exposed to the following risks due to its pension system under the "Labor Standards Act":

(i) Investment risk: The Bureau of Labor Funds, Ministry of Labor, invests pension funds in domestic and foreign equity securities, debt securities, and cash in banks through both self-management and commission management methods. However, according to the provisions of the "Labor Standards Act", the overall return on assets must not be lower than the two-year fixed deposit interest rate at the local bank. If the return falls below this rate, the shortfall will be supplemented by the national treasury.

(ii) Interest rate risk: A decrease in the interest rate of government bonds will increase the defined benefit obligation. However, the investment returns of debt investments in plan assets will also increase, partially offsetting the impact on the net defined benefit liability.

(iii) Salary risk: The calculation of the defined benefit obligation is based on the future salaries of pension plan members. Therefore, an increase in members' salaries will increase the defined benefit obligation.

The main assumptions of actuarial evaluation are listed as follows:

	December 31, 2025	December 31, 2024
Discount rate	1.250%	1.500%
Expected increasing rate of salary	2.000%	2.000%

The changes in the main actuarial assumptions adopted as of December 31, 2025 and 2024, will increase (decrease) the present value of the defined benefit obligation as follows:

December 31, 2025	Actuarial assumptions increase by 0.25%	Actuarial assumptions decrease by 0.25%
Discount rate	$ (257)	$ 264
Future salary increase rate	$ 257	$ (252)
December 31, 2024	Actuarial assumptions increase by 0.25%	Actuarial assumptions decrease by 0.25%
Discount rate	$ (280)	$ 287
Future salary increase rate	$ 281	$ (275)

The sensitivity analysis above analyzes the impact of a single assumption change while keeping other assumptions constant. In practice, changes in many assumptions may be interrelated. The sensitivity analysis is consistent with the method used to calculate the net pension benefit liability on the balance sheet. The method and assumptions used in the sensitivity analysis for the current period are the same as those used in the prior period.

The expected amount of contributions to the defined benefit plan within one year after the reporting dates of December 31, 2025 and 2024, and the weighted average remaining service period of the pension plan are as follows:

	December 31, 2025	December 31, 2024
Expected amount of contributions within one year	$ 154	$ 383
Weighted average remaining service period of the defined benefit obligation	5.6 years	6.4 years

(18) Equity

i. Share capital

	December 31, 2025	December 31, 2024
Authorized share capital	$ 2,638,553	$ 2,638,553
Authorized shares (in thousands)	263,855	263,855
Share capital of issued shares	$ 568,343	$ 568,343
Number of shares (in thousands) issued and fully paid up	56,834	56,834

The face value of issued common shares is NT$10 per share, with each share representing one vote and the right to receive a dividend.

The aforementioned share capital of NT$568,343 thousand includes

NT$100,000 thousand of private placement of common shares. The rights and obligations of the aforementioned private placement of common shares are subject to the transfer restrictions stipulated by the Securities and Exchange Act and can only be listed and traded on a stock exchange after three years from the stock delivery date, and upon completion of the public offering formalities; otherwise, they are the same as other issued common shares.

ii. Capital surplus

	December 31, 2025	December 31, 2024
Changes in net equity value of associated companies recognized using equity method	$ 8,005	$ 8,005
Donated assets	1	1
Others	2	2
Total	$ 8,008	$ 8,008

iii. Retained earnings and dividend policy

(i) Pursuant to the earnings distribution policy specified in the Articles of Incorporation, if the Company has profits in the annual financial statements, taxes and donations shall be paid in accordance with the law, accumulated losses shall be offset, and 10% shall be set aside as legal reserve. The remaining amount shall be allocated or reversed according to legal regulations, and if there is still a balance, the Board of Directors shall prepare an earnings distribution proposal and submit it to the shareholders' meeting for resolution to distribute dividends to the shareholders.

(ii) Based on the overall environment and characteristics of the industry,

the Company adopts a fixed and residual dividend policy for the sustainable operation and continued growth in line with long-term financial planning. When distributing dividends to shareholders, cash dividends are maintained between 30% and 70%, but may be adjusted according to changes in the internal and external operating environment.

(iii) The legal reserve can only be used to offset the Company’s losses or issue new shares or cash to shareholders in proportion to their original shareholding. However, if new shares or cash are issued, the amount of the legal reserve that exceeds 25% of the paid-in capital shall be limited.

(iv) The Company shall reverse the special reserve provided in accordance with the Letter Financial-Supervisory-Securities-Corporate No. 1010012865 issued by the FSC on April 6, 2012, in proportion to the original special reserve appropriated when the relevant assets are used, disposed of, or reclassified. If the relevant assets are land, they shall be reversed when disposed of or reclassified, and for parts other than land, they shall be reversed on a period-by-period basis during the use period. When distributing profits, the difference between the net amount of the reduction in other equity interest on the balance sheet date of the current year and the special reserve appropriated upon first adoption of IFRSs shall be additionally set aside as a special reserve. When other equity reduction items are reversed in the future, the special reserves may be distributed for the

reversed portion.

(v) On March 5, 2026, the Board of Directors passed the resolution for the 2025 profit and loss allocation plan. For relevant information, please see the “Market Observation Post System” of the Taiwan Stock Exchange and other channels.

(vi) On June 10, 2025, the annual general meeting of the Company passed the profit and loss offset plan for 2024. For information on the resolution of shareholders’ meeting, please see the “Market Observation Post System” of the Taiwan Stock Exchange and other channels.

(vii) On June 25, 2024, the annual general meeting of the Company passed the profit and loss offset plan for 2023. For information on the resolution of shareholders’ meeting, please see the “Market Observation Post System” of the Taiwan Stock Exchange and other channels.

iv. Other equity items

	Unrealized gains (losses) from financial assets at fair value through other comprehensive income	Revaluation increment of properties	Total
Balance as of January 1, 2025	$ (230,245)	$ 1,781,991	$ 1,551,746
Arising during the period
Unrealized gains (losses) from financial assets at fair value through other comprehensive income	(1,289)	—	(1,289)
Balance as of December 31, 2025	$ (231,534)	$ 1,781,991	$ 1,550,457

	Unrealized gains (losses) from financial assets at fair value through other comprehensive income	Revaluation increment of properties	Total
Balance as of January 1, 2024	$ (230,614)	$ 1,781,991	$ 1,551,377
Arising during the period
Unrealized gains (losses) from financial assets at fair value through other comprehensive income	369	—	369
Balance as of December 31, 2024	$ (230,245)	$ 1,781,991	$ 1,551,746

v. Treasury stock

(i) Reasons for share reacquisition and changes in the number of shares:

(Unit: Thousand shares)

Reasons for reacquisition	2025
	Shares at beginning of period	Reacquired during the period	Cancelled during the period	Shares at end of period
Maintaining the Company’s credit and shareholders’ equity	2,523	—	—	2,523
Reasons for reacquisition	2024
	Shares at beginning of period	Reacquired during the period	Cancelled during the period	Shares at end of period
Maintaining the Company’s credit and shareholders’ equity	2,523	—	—	2,523

(ii) The Company considers the shares of the Company purchased by its subsidiaries for the purpose of maintaining the Company's credit and shareholders' equity as a treasury stock repurchase transaction. The relevant information regarding the shares of the Company held by subsidiaries as of the balance sheet date is as follows:

Subsidiary	Shares held (in thousands)	Carrying amount of treasury shares	Carrying amount per share	Market price of treasury shares	Market price per treasury share
December 31, 2025
TongYe Investment CO., LTD.(Note)	2,523	$ 80,333	$ 35.38	$ 45,071	$ 19.85
December 31, 2024
TongYe Investment CO., LTD.(Note)	2,523	$ 80,333	$ 35.38	$ 64,257	$ 28.30

Note: The shareholding ratio of the Company’s subsidiary is 90%.

The number of shares of the Company held by the subsidiaries listed in the table above represents the actual quantity held by the subsidiaries. The amount of treasury stocks recorded in the accounts and the market value of treasury stocks are calculated by considering the shareholding ratio of the Company in subsidiaries.

(iii) Treasury stocks held by the Company cannot be pledged or receive dividend payments and voting rights, in accordance with the Securities and Exchange Act. The shares held by the subsidiaries are treated as treasury stocks, which cannot participate in the Company’s cash capital increase and have no voting rights, but otherwise have the same rights as other shareholders.

(19) Operating revenue

	2025	2024
Client contract revenue
Product sales revenue	$ 5,119	$ 10,052
Rental revenue	210	196
Total	$ 5,329	$ 10,248

i. For details about the revenue of the Company, please refer to Note 4(12).
ii. Contract balance

	December 31,2025	December 31,2024	January 1, 2024
Accounts receivable (Note 6(4))
Sales of products	$ —	$ 668	$ —

(20) Other net income and losses

	2025	2024
Gains (losses) on disposals of property, plant and equipment	$ (117)	$ 30,786

(21) Interest revenue

	2025	2024
Bank deposit interest	$ 3,826	$ 8,737
Others	290	158
Total	$ 4,116	$ 8,895

(22) Other income

	2025	2024
Lease income	$ 19	$ 19
Dividend revenue	5,924	6,024
Others	9,625	1,421
Total	$ 15,568	$ 7,464

Others are income from the sale of golf memberships and the sale of waste electric cables.

(23) Other gains and losses

	2025	2024
Gains on fair value adjustment – investment property	$ 129,540	$ 158,487
Foreign exchange gains	3,739	1,849
Gains (losses) on financial assets at fair value through profit or loss	(3,778)	4,743
Others	(902)	(1,408)
Total	$ 128,599	$ 163,671

(24) Finance costs

	2025	2024
Bank loans interest	$ 99,572	$ 86,900
Interest expense on lease liabilities	235	277
Less: Capitalized interest	(5,321)	—
Total	$ 94,486	$ 87,177

(25) Additional information on the nature of fees

i. Total personnel, depreciation, and amortization expenses categorized by function for the current period are as follows:

| Function
Nature | 2025 | | |
| --- | --- | --- | --- |
| | Belong to operating cost | Belong to operating expenses | Total |
| Employee benefit expenses | | | |
| Salaries | $ — | $ 34,035 | $ 34,035 |
| Labor and health insurance | — | 3,052 | 3,052 |
| Pension | — | 738 | 738 |
| Directors’ remuneration | — | 1,274 | 1,274 |
| Other employee benefit expenses | — | 1,580 | 1,580 |
| Depreciation expense | — | 5,445 | 5,445 |
| Amortization | — | — | — |
| Function
Nature | 2024 | | |
| --- | --- | --- | --- |
| | Belong to operating cost | Belong to operating expenses | Total |
| Employee benefit expenses | | | |
| Salaries | $ — | $ 36,574 | $ 36,574 |
| Labor and health insurance | — | 3,036 | 3,036 |
| Pension | — | 894 | 894 |
| Directors’ remuneration | — | 1,226 | 1,226 |
| Other employee benefit expenses | — | 1,518 | 1,518 |
| Depreciation expense | — | 4,284 | 4,284 |
| Amortization | — | — | — |

(i) The average number of employees in the Company was 38 and 39 for the years 2025 and 2024, respectively, with 5 and 4 non-executive directors included in these figures.

(ii) The average employee welfare expenses were NT$1,194 thousand and NT$1,201 thousand for the years 2025 and 2024, respectively, with the average employee salary expenses being NT$1,031 thousand and NT$1,045 thousand, and the adjustment rate for average employee salary expenses being (1)%.

(iii) The compensation policy for directors, executives, and employees is determined based on their positions and responsibilities, taking into account individual performance, company operating performance, and the provisions stipulated in the articles of association.

ii. Employee benefits

(i) According to the Articles of Incorporation, if the Company has a profit for the year, it shall first be used to offset accumulated losses, and then 1% to 3% and no more than 5% of the remaining balance shall be distributed as employees' compensation and directors' remuneration, respectively, and another 1% to 3% shall be distributed as compensation for grassroots employees.

(ii) The Company incurred losses for both 2025 and 2024; therefore, no employee compensation or director remuneration was estimated.

(iii) The information regarding employee and director compensation approved by the Board of Directors can be found on the Market Observation Post System.

(26) Income tax

i. The adjustment of tax expense recognized in profit or loss for 2025 and 2024 is as follows:

	2025	2024
Profit before tax calculated at the statutory income tax rate (20%)	$ (4,019)	$ 8,708
Income tax effects of items excluded in accordance with tax laws	(25,657)	(24,853)
Tax-exempt income	(762)	(1,205)
Income tax effects of loss carryforwards	30,438	33,523
Effects of temporary differences	—	(16,173)
Land value increment tax	49,843	17,756
Income tax (benefit) expense	$ 49,843	$ 17,756

Components of tax expense recognized in profit or loss are as follows:

	2025	2024
Deferred income tax
Occurrence and reversal of temporary differences	$ 49,843	$ 17,756
Tax expense recognized in profit or loss	$ 49,843	$ 17,756

ii. The details of the income tax recognized in other comprehensive income for 2025 and 2024 by the Company are as follows:

	2025	2024
Deferred income tax
Actuarial gains and losses of defined benefit plans	$ 473	$ 817
Income tax recognized in other comprehensive income	$ 473	$ 817

iii. Income tax assets for the current period

	December 31, 2025	December 31, 2024
Tax refund receivable	$ 1,264	$ 1,071

iv. Deferred tax assets and liabilities

Deferred tax liabilities analysis is as follows:

	2025
	Beginning balance	Recognized in profit or loss	Recognized in other comprehensive income	Ending balance
Temporary differences
Land value increment tax provision	$ 492,526	$ 49,843	$ —	$ 542,369
Remeasurement of the defined benefit plans	1,156	—	473	1,629
	$ 493,682	$ 49,843	$ 473	$ 543,998
	2024
	Beginning balance	Recognized in profit or loss	Recognized in other comprehensive income	Ending balance
Temporary differences
Land value increment tax provision	$ 474,770	$ 17,756	$ —	$ 492,526
Remeasurement of the defined benefit plans	339	—	817	1,156
	$ 475,109	$ 17,756	$ 817	$ 493,682

v. Items not recognized as deferred tax assets

	December 31, 2025	December 31, 2024
Amount of loss carryforwards	$ 2,023,134	$ 2,133,561
Amount of temporary differences	$ 18,039	$ 97,005
Amount through other comprehensive income	$ 231,534	$ 230,245

The last deductible year for the loss carryforwards of the Company is 2035.

vi. The operating business income tax settlement declaration of the Company has been approved by the tax authorities up to the year 2023. In accordance with income tax regulations, losses from the previous ten years, as approved by the tax collection agency, can be deducted from the net profit for the current year before reassessing the income tax. As of December 31, 2025, the Company's unamortized losses and amortization periods are as follows:

Year of occurrence	Declared/approved amount	Expiration year	Loss carryforwards
2016	Approved amount	2026	$ 182,580
2017	Approved amount	2027	346,518
2018	Approved amount	2028	238,181
2019	Approved amount	2029	226,287
2020	Approved amount	2030	231,512
2021	Approved amount	2031	204,920
2022	Approved amount	2032	142,568
2023	Approved amount	2033	147,717
2024	Declared amount	2034	157,517
2025	Estimated amount	2035	145,334
			$ 2,023,134

(27) Earnings (loss) per share

	2025	2024
Basic earnings (loss) per share (NT$)	$ (1.29)	$ 0.47

The information used to calculate the weighted average number of ordinary shares and basic earnings (loss) per share is as follows:

	2025	2024
Net profit (loss) attributable to owners of parent company (NT$ thousand)	$ (69,937)	$ 25,785
Weighted average ordinary shares used to calculate basic earnings (loss) per share (in thousands)	54,311	54,311
Basic earnings (loss) per share (NT$)	$ (1.29)	$ 0.47

(28) Cash flow information

i. Investment activities affecting both cash and non-cash items

Property, plant and equipment

	2025	2024
Additions during the period	$ 12,748	$ 5,385
Add: Prepayments for equipment at end of period	—	—
Less: Equipment payable at end of period	(352)	—
Cash paid during the period	$ 12,396	$ 5,385

ii. Changes in liabilities from financing activities

	Short-term loans	Long-term loans	Guarantee deposits received	Lease liability	Total liabilities arising from financing activities
January 1, 2025	$ —	$3,432,600	$ 3	$ 11,344	$3,443,947
Changes in financing cash flows	200,000	27,802	—	(1,915)	225,887
December 31, 2025	$ 200,000	$3,460,402	$ 3	$ 9,429	$3,669,834
	Short-term loans	Long-term loans	Guarantee deposits received	Lease liability	Total liabilities arising from financing activities
January 1, 2024	$ 100,000	$2,602,000	$ 3	$ 13,217	$2,715,220
Changes in financing cash flows	(100,000)	830,600	—	(1,873)	728,727
December 31, 2024	$ —	$3,432,600	$ 3	$ 11,344	$3,443,947

(29) Capital risk management

The Company conducts capital management to ensure that it can maximize shareholder returns by optimizing debt and equity balances while continuing to operate.

(30) Financial instruments

i. Financial instruments by category

	December 31, 2025	December 31, 2024
Financial assets
Cash and cash equivalents	$ 541,951	$ 503,650
Financial assets at fair value through profit or loss	160,981	189,145
Financial assets at fair value through other comprehensive income	4,261	5,550
Accounts receivable	—	668
Other receivables	4,835	3,157
Guarantee deposits paid	5,418	7,338
Financial liabilities
Short-term loans	200,000	—
Notes payable	8	31
Other payables	13,891	19,196
Long-term loans (including the portion due within one year)	3,460,402	3,432,600
Guarantee deposits received	3	3

ii. Financial risk management

The primary financial instruments of the Company include cash and cash equivalents, funds, equity investments, and loans. The financial management department provides services to business units, coordinating domestic and international financial market operations. The department oversees and manages financial risks related to the operations of the

Company by analyzing internal risk reports based on risk level and breadth. These risks include market risk (including exchange rate risk, interest rate risk, and other price risk), credit risk, and liquidity risk.

(i) Market risk

The main financial risks arising from operations are exchange rate risk, interest rate risk, and other price risk.

There has been no change to the approach to measuring and managing market risk in relation to its financial instruments.

A. Exchange rate risk

The Company is primarily affected by fluctuations in the USD exchange rate.

The table below illustrates the sensitivity analysis of the Company when the New Taiwan Dollar (functional currency) appreciates or depreciates by 5% against relevant foreign currencies. The 5% is the sensitivity percentage used internally by the Company to report exchange rate risk to senior management, which also represents management's assessment of the reasonable range of possible changes in foreign exchange rates. Sensitivity analysis only includes foreign currency monetary items, and their year-end conversion is adjusted by an exchange rate change of 5%. A positive number indicates the amount by which the net loss before tax will decrease when the New Taiwan Dollar appreciates by 5% against each relevant currency; when the New Taiwan Dollar depreciates by 5% against each relevant foreign currency, its impact on the net loss before tax will be a negative number of the

same amount.

(A) The information on the significant foreign currency financial assets and liabilities of the Company is as follows:

	December 31, 2025
(Foreign currency: Functional currency)	Foreign currencies	Exchange rate	NTD	Sensitivity analysis
				Range of change	Impact on profit or loss	Other comprehensive income impact
Financial assets
Monetary item
USD: NTD	2	31.38	74	5%	4	—
	December 31, 2024
---	---	---	---	---	---	---
(Foreign currency: Functional currency)	Foreign currencies	Exchange rate	NTD	Sensitivity analysis
				Range of change	Impact on profit or loss	Other comprehensive income impact
Financial assets
Monetary item
USD: NTD	10,089	32.74	330,263	5%	16,513	—

(B) The significant impact of unrealized foreign exchange gain and loss is as follows:

	2025
Foreign currencies	Exchange rate	Net foreign exchange loss
USD	31.38 (USD: NTD)	$ (1,787)
	2024
Foreign currencies	Exchange rate	Net foreign exchange gains
USD	32.74 (USD: NTD)	$ 1,784

B. Interest rate risk

The carrying amount of financial assets and financial liabilities subject to interest rate risk on the balance sheet date is as follows:

	December 31, 2025	December 31, 2024
Fair value interest rate risk
–Financial liabilities	$ 9,429	$ 11,344
Cash flow interest rate risk
–Financial assets	$ 523,352	$ 502,173
–Financial liabilities	3,660,402	3,432,600

The sensitivity analysis is determined based on the interest rate risk exposure of non-derivative instruments as of the balance sheet date. For floating-rate liabilities, the analysis assumes that the amount of liabilities outstanding as of the balance sheet date will remain outstanding throughout the reporting period. The basis adopted in reporting interest rates to primary management of the Group is an increase or decrease of 25 basis points, which also represents management's assessment of the reasonably possible range of interest rate changes.

If the interest rate increases or decreases by 25 basis points, with all other variables remaining constant, the net loss before tax for 2025 and 2024 will increase or decrease by NT$7,843 thousand and NT$7,326 thousand, respectively, mainly due to the floating rate

borrowings of the Company.

C. Other price risk

The Company is exposed to equity price risk due to its listed equity securities investments. The management mitigates the risk by holding different portfolios of risk investments.

Sensitivity analysis is based on the equity price risk on the balance sheet date.

If the equity price increases or decreases by 5%, the profit before tax for 2025 and 2024 will increase or decrease by NT$2,752 thousand and NT$4,249 thousand, respectively, due to the fair value measurement of financial assets at fair value through profit or loss.

(ii) Credit risk

Credit risk refers to the risk of financial loss caused by the counterparty’s failure to fulfill contractual obligations. As of the balance sheet date, the Group’s maximum exposure to credit risk that may result in financial loss due to a counterparty’s failure to meet its obligations mainly arises from the carrying amounts of financial assets recognized in the individual balance sheet.

To mitigate credit risk, the management of the Company has assigned a dedicated team to determine credit limits, approve credit, and monitor procedures to ensure appropriate actions have been taken to collect overdue receivables. In addition, the Company reviews the recoverable amounts of receivables one by one on the balance sheet date to ensure that appropriate impairment losses have been recognized for unrecoverable receivables.

(iii) Liquidity risk

The Company manages and maintains sufficient positions of cash and cash equivalents to support group operations and mitigate the impact of cash flow fluctuations. The management of the Company oversees the utilization of bank financing and ensures compliance with loan contract terms.

A. Table of liquidity and interest rate risks for non-derivative financial liabilities

The remaining contract analysis of non-derivative financial liabilities is prepared based on the earliest possible date that the Company may be required to repay, using the undiscounted cash flows of financial liabilities (including principal and estimated interest). Therefore, bank loans that may be immediately repayable by the Company are listed in the earliest period in the table, without considering the probability of the bank immediately exercising that right. Other non-derivative financial liabilities are prepared based on the agreed repayment date.

	December 31, 2025
	Due on demand or within one month	1 to 3 months	3 months to 1 year	1 to 5 years	More than 5 years	Total
Non-derivative financial liabilities
Non-interest-bearing liabilities	$ 12,736	$ 14	$ 1,150	$ —	$ —	$ 13,900
Lease liability	179	358	1,613	6,398	1,380	9,928
Variable rate instruments	8,533	17,602	3,684,244	—	—	3,710,379
	$ 21,448	$ 17,974	$ 3,687,007	$ 6,398	$ 1,380	$ 3,734,207

December 31, 2024

	Due on demand or within one month	1 to 3 months	3 months to 1 year	1 to 5 years	More than 5 years	Total
Non-derivative financial liabilities
Non-interest-bearing liabilities	$ 18,035	$ 42	$ 1,150	$ —	$ —	$ 19,227
Lease liability	179	358	1,613	6,452	3,477	12,079
Variable rate instruments	8,276	16,552	74,485	3,479,662	—	3,578,975
	$ 26,490	$ 16,952	$ 77,248	$ 3,486,114	$ 3,477	$ 3,610,281

B. Financing amount

	December 31, 2025	December 31, 2024
Secured bank loan amount
- Amount utilized	$ 3,660,402	$ 3,432,600
- Amount unutilized	690,640	918,442
	$ 4,351,042	$ 4,351,042

(31) Fair value information

i. The carrying amount of financial instruments (including cash and cash equivalents, other receivables, guarantee deposits paid, short-term borrowings, notes payable, other payables, and long-term borrowings) at amortized cost is the reasonable approximation of fair value.
ii. The fair value hierarchy for valuation techniques used to measure the fair value of financial and non-financial instruments is defined as follows:

Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2: Except for quoted prices included in Level 1, fair value is derived from observable inputs for the assets or liabilities

that are either directly (i.e., prices) or indirectly (i.e., derived from prices) observable.

Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs) and are used to determine fair value.

iii. As of December 31, 2025 and 2024, the financial and non-financial instruments at fair value by the Company were classified based on the nature, characteristics, and risks of the assets and liabilities, as well as the level of fair value, and the related information is as follows:

Recurring fair value	December 31, 2025
	Level 1	Level 2	Level 3	Total
Financial assets at fair value through profit or loss – current	$ 55,035	$ —	$ —	$ 55,035
Financial assets at fair value through profit or loss – non-current	$ —	$ —	$ 105,946	$ 105,946
Financial assets at fair value through other comprehensive income – non-current	$ —	$ —	$ 4,261	$ 4,261
Investment property	$ —	$ —	$ 3,085,012	$ 3,085,012
Recurring fair value	December 31, 2024
---	---	---	---	---
	Level 1	Level 2	Level 3	Total
Financial assets at fair value through profit or loss – current	$ 84,972	$ —	$ —	$ 84,972
Financial assets at fair value through profit or loss – non-current	$ —	$ —	$ 104,173	$ 104,173
Financial assets at fair value through other comprehensive income – non-current	$ —	$ —	$ 5,550	$ 5,550
Investment property	$ —	$ —	$ 2,955,472	$ 2,955,472

iv. Valuation techniques for financial instruments at fair value

(i) Valuation techniques for financial instruments not measured at fair value

Financial assets and financial liabilities of the Company that are not measured at fair value are measured at amortized cost. When estimating the fair value of these financial instruments, if there are quoted prices from active markets or dealers, the most recent transaction prices and quoted prices are used as the basis for fair value measurement. If no market value is available for reference, a valuation approach is used for estimation. The estimation and assumptions used in the valuation approach are discounted cash flow valuation to estimate the fair value.

(ii) Valuation techniques for financial instruments at fair value

If there is an active quotation, then it will take the quoted price as the fair value. The market prices announced by the major stock exchange and Taipei Exchange are the basis for the fair value of listed (and OTC) equity instruments and financial instruments with quoted prices in active markets.

If publicly quoted prices for financial instruments can be obtained in a timely and frequent manner from exchanges, brokers, underwriters, industry associations, pricing service agencies, or regulatory authorities, and the price represents actual and frequent fair market transactions, the financial instruments are considered to have publicly quoted prices in active markets. If the conditions above are not met, the market will be considered inactive. Generally, significant

differences in buying and selling prices or low transaction volume will be considered inactive market indicators.

Instruments held by the Company are classified into the following categories based on the valuation sources used to determine fair value: Financial instruments with active markets: The fair value of domestic listed equity investments and closed-end funds is considered based on the market quotation.

Financial instruments without active markets: The fair value of investment in domestic unlisted stocks is estimated using comparable company analysis, with the main assumption based on the multiplier derived from the net profit or equity value of the invested company and the market quotes of comparable listed (and OTC) companies. The estimated number has been adjusted for the discount impact of the lack of market liquidity of equity securities.

Investment in private equity funds whose fair value is estimated using the net asset value method, reflecting the overall value of the underlying assets and liabilities covered by the valuation, and considering the discount impact of liquidity.

(iii) Fair value measurement techniques for non-financial instruments measured at fair value

The fair value technique used by the Company to measure investment property follows the Regulations Governing the Preparation of Financial Reports by Securities Issuers and applies an external appraiser calculated by the land development analysis method.

The estimated selling amount is based on supply and demand within

the same cycle and area with similar product planning and pricing as a reference. The fair value of the area is adjusted for each foundation, and the fair value of the whole area is estimated.

Fair value increases when the estimated total sales amount increases, the profit margin increases, or the weighted average cost of capital decreases.

v. There were no transfers between the fair value levels of financial assets for 2025 and 2024.

vi. The reconciliation of changes in Level 3 is as follows:

	2025
	Beginning balance	Recognized in profit or loss	Recognized in other comprehensive income	Ending balance
Financial assets at fair value through profit or loss	$ 104,173	$ 1,773	$ —	$ 105,946
Financial assets at fair value through other comprehensive income	$ 5,550	$ —	$ (1,289)	$ 4,261
Investment property	$ 2,955,472	$ 129,540	$ —	$ 3,085,012
	2024
	Beginning balance	Recognized in profit or loss	Recognized in other comprehensive income	Ending balance
Financial assets at fair value through profit or loss	$ 103,785	$ 388	$ —	$ 104,173
Financial assets at fair value through other comprehensive income	$ 5,181	$ —	$ 369	$ 5,550
Investment property	$ 2,796,985	$ 158,487	$ —	$ 2,955,472

vii. Quantitative information on significant unobservable inputs (Level 3) used in the fair value measurement

The fair value measurement of the Company is classified as Level 3, primarily including financial assets at fair value through profit or loss – fund investments, financial assets at fair value through other comprehensive income – equity securities investments, and investment properties.

The list of quantitative information with significant unobservable inputs is as follows:

Item	Valuation method	Significant unobservable inputs	Relationship between significant unobservable inputs and fair value
Financial assets at fair value through profit or loss – investment in private funds without active market	Net asset value method	Lack of market liquidity Discount	The higher the net asset value, the higher the fair value; the higher the market liquidity discount, the lower the fair value.
Financial assets at fair value through other comprehensive income – equity securities investments without active market	Comparable company analysis	Weighted average price-to-book ratio and liquidity discount	The higher the multiplier, the higher the fair value; the higher the discount rate, the lower the fair value
Investment property	Discounted cash flow method	Long-term revenue growth rate and discount rate (Note)	The higher the long-term revenue growth rate, the higher the fair value; the higher the discount rate, the lower the fair value

Note: Please refer to Note 6(12) for the range of discount rates.

viii. Sensitivity analysis of fair value measurement for Level 3 to reasonably possible alternative assumptions

The fair value measurement of financial instruments is reasonable, but the use of different valuation models or parameters may lead to different valuation results. For financial instruments classified as Level 3, changes in valuation parameters have the following impact on current period

profit or loss or other comprehensive income:

	Input value	Upward or downward changes	Fair value changes recognized in current profit or loss		Fair value changes recognized in other comprehensive income
			Favorable change	Unfavorable change	Favorable change	Unfavorable change
December 31, 2025
Financial assets at fair value through profit or loss
Fund investments without active market	Liquidity discount	±5%	5,297	(5,297)	—	—
Financial assets at fair value through other comprehensive income
Equity instrument investments without active market	Net ratio multiplier	±5%	—	—	213	(213)
December 31, 2024
Financial assets at fair value through profit or loss
Fund investments without active market	Liquidity discount	±5%	5,209	(5,209)	—	—
Financial assets at fair value through other comprehensive income
Equity instrument investments without active market	Net ratio multiplier	±5%	—	—	278	(278)

The favorable and unfavorable changes of the Company refers to the fluctuations in fair value, which are calculated based on different levels of unobservable input parameters using the valuation method.

7. Related Party Transactions

(1) Names and relationship with related parties

Name of related party	Relationship with the Group
MRS company (MRS)	Subsidiary
Chung Liang CO., LTD. (Chung Liang)	Substantial related party (whose chairman is a second-degree relative of the Company’s Chairman)
Lin Chuang-Ju	Management (Chairman of the Company)
Ling Ho-Whei	Management (Director of the Company)

(2) Important transaction with the related party

i. Operating cost

Account	Names of related parties	2025	2024
Operating cost — container unloading fees	Chung Liang	$ 5	$ 35

Operating costs — container unloading fees are expenditures for unloading imported goods commissioned by the Company from Chung Ling.

ii. Other income

Account	Names of related parties	2025	2024
Other income - lease income	MRS	$ 19	$ 19
Other income - others	MRS	$ —	$ 1,200

Lease income is the income from MRS company for leasing office space from the Company.

Other income is the remuneration for the Company serving as a director of MRS company.

iii. Other receivables

Others

Names of related parties	December 31, 2025	December 31, 2024
MRS	$ —	$ 1,200

iv. Notes payable

Names of related parties	December 31, 2025	December 31, 2024
Chung Liang	$ —	$ 14

v. Lease agreement

Guarantee deposits received

Names of related parties	2025	2024
MRS	$ 3	$ 3

Guarantee deposits received are the deposits from MRS company for leasing office space from the Company.

vi. Guarantee situation

The Company signed loan agreements with banks for 2025 and 2024, with Chairman Lin Chuang-Ju and Director Ling Ho-Whei as joint guarantors.

(3) Key management personnel compensation

The compensation information for directors and other key management personnel is as follows:

	2025	2024
Short-term employee benefits	$ 21,059	$ 21,342
Post-employment benefits	(79)	(44)
	$ 20,980	$ 21,298

The compensation for directors and other key management personnel is determined by the Remuneration Committee based on individual performance and market trends.

8. Pledged Assets

Item	Content	Book value
		December 31, 2025	December 31, 2024
Inventories – land held for construction site	Provided to financial institution as collateral	$ 393,321	$ 389,424
Property, plant and equipment	”	615,058	600,513
Investment property	”	3,062,235	2,933,715
Total		$ 4,070,614	$ 3,923,652

9. Significant Contingent Liabilities and Unrecognized Contractual Commitments

In addition to the other disclosures, the Company has the following significant commitments and contingent liabilities as of the balance sheet date:

(1) The unused balance of letters of credit for imported raw materials is as follows:

Currency	December 31, 2025	December 31, 2024
USD	$ 1	$ –

(2) As of December 31, 2025 and 2024, the amount of promissory notes issued by the Company to obtain total credit limits from financial institutions was NT$4,351,042 thousand in both periods.

(3) As of December 31, 2025 and 2024, the unrecognized contractual commitments of the Company for the construction and sale of housing are as follows:

	December 31, 2025	December 31, 2024
Contract amount for acquiring inventory	$ 495,751	$ –
Amount paid	$ 24,537	$ –

Significant Disaster Losses: None.
Significant Subsequent Events: None.
Others: None.
Note Disclosures

(1) Information on Significant Transactions:
i. Fund financing to other parties: None.
ii. Endorsements/guarantees provided for others: Table 1.
iii. End-of-period holdings (Excluding investment in subsidiaries, associates, and joint ventures): Table 2.
iv. Purchases from or sales to related parties exceeding NT$100 million or 20% of the paid-in capital: None.
v. Receivable from related parties exceeding the lower of NT$100 million or 20% of the paid-in capital: None.
vi. Business relationships and significant transactions between parent and subsidiary companies and between subsidiary companies: None.

(2) Information on Investee Companies:
Investee, location, and other related information (excluding investment in Mainland China): Table 3.

(3) Information on Mainland China Investments: None.

Segment Information
Please refer to the 2025 Consolidated Financial Statements.

Table 1
Endorsements/Guarantees Provided for Others
Unit: NT$ thousands

No. (Note 1)	Name of endorser/ guarantor	Counterparty		Limit on endorsements/ guarantees for a single enterprise (Note 4)	Maximum endorsement and guarantee balance for the period	Ending balance of endorsements and guarantees	Actual drawdown amount	Amount of collateral set for endorsements and guarantees using property	Percentage of accumulated amount of endorsements/ guarantees to net value on the latest financial statements	Aggregate limit on endorsements/ guarantees (Note 5)	Endorsements/ guarantees by parent company for subsidiary (Note 6)	Endorsements/ guarantees by subsidiary for parent company (Note 6)	Endorsement/ guarantee for entities in Mainland China (Note 6)
		Company name	Relationship (Note 2)
0	TongHwa Corporation	Tai Zhan Construction Co., Ltd.	1	$ 869,064	$ 869,064	$ 869,064	$ -	$ 869,064	-	$ 2,100,694	N	N	N

Note 1: The method of filling in the numbering column is as follows:
(1) "0" for the issuer.
(2) Each subsidiary is sequentially numbered starting from "1".
Note 2: Relationships between an endorser/guarantor and the Counterparty fall into the following seven categories; indicate the category into which the relationship falls:
(1) A company with business transactions.
(2) A company wherein the Company directly or indirectly holds more than 50% of the voting shares.
(3) A company that directly or indirectly holds more than 50% of the Company's voting shares.
(4) Companies wherein the Company directly or indirectly holds more than 90% of the voting shares.
(5) Companies providing mutual endorsements/guarantees under contractual agreements due to construction contract requirements among peers or co-developers.
(6) A company that is endorsed/guaranteed by all capital-contributing shareholders in proportion to their shareholding ratios due to a joint investment.
(7) Industry peers providing joint and several guarantees for the performance of pre-sale housing sales contracts in accordance with the Consumer Protection Act.
Note 3: The calculation method for the maximum limit and the amount of the maximum limit shall be specified. If the financial statements recognize contingent losses, the amount recognized shall be noted.
Note 4: Due to the joint construction relationship with Tai Zhan Construction Co., Ltd., the land held in its name must be provided as collateral for this credit facility and is not subject to the restrictions on the total amount of endorsements/guarantees or the limit for a single enterprise. The book value of the land for this joint construction project, amounting to NT$869,064 thousand, serves as the limit for this endorsement/guarantee.
Note 5: The sum of the net assets from the most recent financial statements plus the book value of the land under the joint construction project (NT$869,064 thousand) constitutes the total limit for endorsements and guarantees.
Note 6: Fill in "Y" in the respective column if it is a case of an endorsement/guarantee by a TWSE or TPEx-listed parent company to its subsidiary, endorsement/guarantee by a subsidiary to its TWSE or TPEx-listed parent company, or endorsement/guarantee in Mainland China.

Table 2
Significant Marketable Securities Held at End of Period (Excluding Investment in Subsidiaries, Associates, and Joint Ventures)
Unit: NT$ thousands; share

Holder	Marketable securities type and name (Note 1)	Relationship with issuer	Account	End of period
				Shares	Carrying amount	Shareholding	Market value/net value
TongHwa Corporation	Fund
Union Green Energy Private Equity Limited Partnership	None	Financial assets at fair value through profit or loss – non-current	—	105,946	4.67	105,946	Note 2
TongYe Investment CO., LTD.	Stock
TongHwa Corporation	The Company	Financial assets at fair value through other comprehensive income – non-current	2,522,865	50,079	4.46	50,079	Note 3

Note 1: The term "securities" referred to in this table refers to stocks, bonds, beneficiary certificates, and securities derived from the aforementioned items within the scope of International IFRS No. 9 "Financial Instruments".
Note 2: Settlement is based on the obtainable financial information of the investee.
Note 3: During the preparation of the consolidated financial statements, the consolidation offset has been completed.
Note 4: The above disclosure threshold amount is based on 1% of total assets.

Table 3
Investee, Location and Other Related Information (Excluding Investment in Mainland China)
Unit: NT$ thousands; share

Investor	Investee (Note 1)	Location	Main businesses and products	Initial investment amount		End-of-period holdings			Net income (loss) of investee (Note 1(2))	Investment income (loss) recognized for the period (Note 1(3))	Note
				End of period	End of last year	Shares	Percentage %	Carrying amount
TongHwa Corporation	TongYe Investment CO., LTD.	12F.-1, No. 8, Ziqiang S. Rd., Zhubei City, Hsinchu County, Taiwan	General investment	$ 95,400	$ 95,400	5,490,000	90.00	$ (20)	$ (45)	$ (41)	Subsidiary
n	MRS company	9F, No. 56, Sec. 1, Xinsheng S. Rd., Zhongzheng Dist., Taipei City, Taiwan	General investment industry, residential and building development, leasing and sales industry, etc.	450,000	450,000	45,000,000	100.00	448,947	(1,226)	(1,226)	Subsidiary
n	Donghua Leasing Co., Ltd.	1F., No. 149, Sec. 2, Xinhai Rd., Da'an Dist., Taipei City, Taiwan	General investment, athletic and recreational sports venues, etc.	15,000	15,000	1,500,000	100.00	12,827	(1,440)	(1,440)	Subsidiary
n	CETECH CO., LTD.	No. 48, Xuetian Rd., Wuri Dist., Taichung City, Taiwan	Processing, manufacturing, and retailing of carbon paper, carbon cloth, and carbon fiber cloth	30,000	30,000	3,000,000	12.44	12,288	8,374	1,042	Associates

Note 1: (1) The columns of "Investee", "Location", "Main business and products", "Initial investment amount", and "End-of-period shareholding" shall be filled in sequentially based on the investment situation of this (publicly listed) company and each directly or indirectly controlled invested company and their respective investment situations. The relationship between each invested company and this (publicly listed) company, such as whether it is a subsidiary or an associate, shall be noted in the Note column.

(2) The column of “Net income (loss) of investee” shall be filled with the income or loss amount of each invested company for the period.

(3) The column of “Investment income (loss) recognized for the period” only needs to be filled with the income or loss amount recognized by this (publicly listed) company for the directly invested subsidiaries and the invested companies accounted for using the equity method. The rest can be left blank. When filling in the “Profit or loss amount of the current period for each subsidiary recognized as a direct investment”, it shall be confirmed that the profit or loss amount of each subsidiary for the current period already includes the investment profit or loss that should be recognized according to the regulations.

Note 2 : The above investments were offset as consolidated financial statements were prepared by the parent and subsidiaries

TongHwa Corporation
Major Accounting Items
2025

(expressed in thousands of New Taiwan Dollars, unless otherwise specified)

No. / Index	Name of schedule
1	Cash and cash equivalents
2	Financial assets at fair value through profit or loss – current
Note 6(5)	Other receivables
3	Inventories
Note 6(7)	Prepayments
4	Financial assets at fair value through profit or loss – non-current
5	Financial assets at fair value through other comprehensive income – non-current
6	Investments accounted for using equity method
Note 6(9)	Property, plant and equipment
Note 6(9)	Accumulated depreciation of property, plant and equipment
7	Right-of-use asset
7	Accumulated depreciation of right-of-use asset
8	Investment property
Note 6(14)	Other payables
9	Short-term loans
10	Lease liabilities
Note 6(16)	Other current liabilities
Note 6(15)	Long-term loans
11	Operating revenue
12	Operating cost
13	Operating expenses
Note 6(20)	Other net income and losses
Note 6(22)	Other income
Note 6(23)	Other gains and losses
Note 6(24)	Financing costs
Note 6(25)	Summary statement of current period employee benefits, depreciation, depletion, and amortization expenses by function

Statement of Cash and Cash Equivalents
December 31, 2025
Statement 1

Item	Description	Amount
Cash on hand		$ 40
Cash in bank
Check deposit		18,559
Current account deposits		523,278
Foreign currency deposit	USD 2,353.52	74
Total		$ 541,951

Exchange rate: USD 31.43

Statement of Changes in Financial Assets at Fair Value through Profit or Loss – Current

For the Years Ended December 31, 2025

Statement 2

Name	Beginning balance		Increase for the year		Decrease for the year		Current period valuation	Ending balance		Collateral or pledge provided
	Shares	Book value	Shares	Amount	Shares	Amount		Shares	Book value
Taiwan Semiconductor Manufacturing Co., Ltd.	14,000	15,050	7,000	9,303	(16,000)	(16,915)	312	5,000	7,750	None
Jinan Acetate Chemical Co., LTD.	4,000	3,588	44,000	3,207	(48,000)	(6,169)	(626)	—	—	〃
GOLD CIRCUIT ELECTRONICS LTD	8,000	1,932	—	—	(8,000)	(1,821)	(111)	—	—	〃
QUANTA COMPUTER INC.	8,000	2,296	—	—	(8,000)	(2,038)	(258)	—	—	〃
Wiwynn Corporation	250	655	1,150	3,754	(400)	(806)	882	1,000	4,485	〃
HON HAI PRECISION IND. CO., LTD.	4,000	736	12,000	2,976	(16,000)	(3,317)	(395)	—	—	〃
Scientech Corporation	2,000	791	—	—	(2,000)	(754)	(37)	—	—	〃
Alchip Technologies, Limited	2,000	6,560	—	—	(2,000)	(6,059)	(501)	—	—	〃
CHUNG-HSIN ELECTRIC & MACHINERY MFG. CORP.	50,000	7,700	2,000	302	(52,000)	(7,600)	(402)	—	—	〃