Topkey Corporation and Subsidiaries

Consolidated Financial Statements for the Years Ended December 31, 2025 and 2024

DECLARATION OF CONSOLIDATION OF FINANCIAL STATEMENTS OF AFFILIATES

The companies required to be included in the consolidated financial statements of affiliates in accordance with the "Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises" for the year ended December 31, 2025 are all the same as the companies required to be included in the consolidated financial statements of parent and subsidiary companies as provided in International Financial Reporting Standard No. 10, "Consolidated Financial Statements". Relevant information that should be disclosed in the consolidated financial statements of affiliates has all been disclosed in the consolidated financial statements of parent and subsidiary companies. Hence, we have not prepared a separate set of consolidated financial statements of affiliates.

Very truly yours,

Topkey Corporation

SHEN WEN CHEN President

March 12, 2026

INDEPENDENT AUDITORS' REPORT

The Board of Directors and Shareholders Topkey Corporation

Opinion

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

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

Basis for Opinion

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

Key Audit Matters

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

Key audit matters of the Group’s consolidated financial statements for the year ended December 31, 2025 is as follows:

Revenue Recognition

The Group’s sales revenue mainly comes from the manufacture and sale of sporting goods, carbon fiber products, glass fiber products, and composite materials. A significant portion of export sales to customers increased significantly has a material impact on the financial statements. Therefore, we identified recognition authenticity of sales revenue as a key audit matter. For the accounting policies on the recognition of sales revenue, refer to Note 4.

Our key audit procedures performed in respect of revenue recognition included the following:

We understood and evaluated the design and appropriateness of implementation of the internal controls related to the recognition of sales revenue, and tested the continuous effectiveness of its controls during the year.
We selected samples of the sales revenue receipts and vouched the documents to sales order, delivery of goods and receipt vouchers related to sales revenue and verified the occurrence of the sales revenue.

Other Matter

We have also audited the parent company only financial statements of Topkey Corporation as of and for the years ended December 31, 2025 and 2024 on which we have issued an unmodified opinion.

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

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

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

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

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

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

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

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

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

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

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

The engagement partners on the audits resulting in this independent auditors' report are Shao-Chun Wu and Ting-Chien Su.

Deloitte & Touche Taipei, Taiwan Republic of China

March 12, 2026

Notice to Readers

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

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

TOPKEY CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	2025		2024
ASSETS	Amount	%	Amount	%
CURRENT ASSETS
Cash and cash equivalents (Note 6)	$ 5,482,444	39	$ 7,018,422	43
Financial assets at amortized cost - current (Notes 7 and 25)	20,047	-	20,278	-
Trade receivables (Note 8)	1,561,712	11	2,059,331	13
Other receivables	54,338	-	85,755	1
Current tax assets (Note 20)	21,711	-	-	-
Inventories (Note 9)	1,363,488	10	1,525,734	10
Other current assets	224,786	2	219,897	1
Total current assets	8,728,526	62	10,929,417	68
NON-CURRENT ASSETS
Financial assets at fair value through other comprehensive income - non-current (Note 10)	-	-	-	-
Property, plant and equipment (Note 12)	4,677,714	34	4,633,273	29
Right-of-use assets (Note 13)	466,045	3	509,938	3
Deferred tax assets (Note 20)	54,902	1	30,235	-
Refundable deposits	10,796	-	12,592	-
Other non-current assets	48,538	-	62,164	-
Total non-current assets	5,257,995	38	5,248,202	32
TOTAL	$ 13,986,521	100	$ 16,177,619	100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term borrowings (Notes 14)	$ 329,364	2	$ 2,527,437	16
Notes payable and trade payables	522,063	4	584,043	4
Other payables (Note 15)	665,044	5	658,498	4
Current tax liabilities (Note 20)	62,788	-	288,915	2
Lease liabilities - current (Note 13)	17,025	-	20,715	-
Current portion of long-term borrowings (Note 14)	241,967	2	73,187	-
Other current liabilities	729,890	5	767,589	5
Total current liabilities	2,568,141	18	4,920,384	31
NON-CURRENT LIABILITIES
Long-term borrowings (Note 14)	858,496	6	956,190	6
Deferred tax liabilities (Note 20)	386,082	3	415,125	3
Lease liabilities - non-current (Note 13)	205,362	1	223,739	1
Guarantee deposits	531	-	251	-
Other non-current liabilities	104,794	1	51,425	-
Total non-current liabilities	1,555,265	11	1,646,730	10
Total liabilities	4,123,406	29	6,567,114	41
EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY
Capital stock	908,200	7	908,200	6
Capital surplus	1,639,532	12	1,639,532	10
Retained earnings
Legal reserve	1,342,259	10	1,170,978	7
Special reserve	140,145	1	372,946	2
Unappropriated earnings	5,672,702	40	5,255,608	33
Other equity
Exchange differences on translation of the financial statement of foreign operations	(268,570)	(2)	(130,145)	(1)
Unrealized valuation loss on financial assets at fair value through other comprehensive income	(10,000)	-	(10,000)	-
Total equity attributable to owners of the Company	9,424,268	68	9,207,119	57
NON-CONTROLLING INTERESTS	438,847	3	403,386	2
Total equity	9,863,115	71	9,610,505	59
TOTAL	$ 13,986,521	100	$ 16,177,619	100

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

(With Deloitte & Touche auditors' report dated March 12, 2026)

TOPKEY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

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

	2025		2024
	Amount	%	Amount	%
NET REVENUE (Note 18)	$ 9,202,655	100	$ 9,478,115	100
COST OF GOODS SOLD (Notes 9 and 19)	5,953,019	65	6,170,821	65
GROSS PROFIT	3,249,636	35	3,307,294	35
OPERATING EXPENSES
Selling and marketing expenses (Note 19)	233,020	3	219,327	2
General and administrative expenses (Note 19)	777,676	8	738,640	8
Research and development expenses (Note 19)	505,785	5	469,310	5
Expected credit loss (Note 8)	11,320	-	3,099	-
Total operating expenses	1,527,801	16	1,430,376	15
INCOME FROM OPERATIONS	1,721,835	19	1,876,918	20
NON-OPERATING INCOME AND EXPENSES
Finance costs (Note 19)	(67,175)	(1)	(69,071)	(1)
Interest income	216,548	2	279,221	3
Government grants income	49,572	1	36,771	-
Other gains	45,568	1	45,507	1
(Loss) gain on disposal of property, plant and equipment	(3,083)	-	1,527	-
Net foreign exchange (loss) gain	(59,209)	(1)	266,215	3
Reversal of impairment loss on property, plant and equipment (Note 12)	864	-	224	-
Other losses	(3,295)	-	(10,243)	-
Total non-operating income and expenses	179,790	2	550,151	6
INCOME BEFORE INCOME TAX	1,901,625	21	2,427,069	26
INCOME TAX EXPENSE (Note 20)	427,642	5	635,332	7
NET INCOME	1,473,983	16	1,791,737	19
OTHER COMPREHENSIVE INCOME
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translating the financial statements of foreign operations	(184,381)	(2)	311,962	3
			(Continued)

TOPKEY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

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

	2025		2024
	Amount	%	Amount	%
Income tax relating to items that will be reclassified subsequently to profit or loss (Note 20)	$ 34,606	-	$ (58,200)	-
Other comprehensive income (loss) for the year, net of income tax	(149,775)	(2)	253,762	3
TOTAL COMPREHENSIVE INCOME FOR THE YEAR	$ 1,324,208	14	$ 2,045,499	22
NET PROFIT ATTRIBUTABLE TO:
Owners of the Company	$ 1,354,594	15	$ 1,712,809	18
Non-controlling interests	119,389	1	78,928	1
	$ 1,473,983	16	$ 1,791,737	19
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Owners of the Company	$ 1,216,169	13	$ 1,945,610	21
Non-controlling interests	108,039	1	99,889	1
	$ 1,324,208	14	$ 2,045,499	22
EARNINGS PER SHARE (Note 21)
Basic	$ 14.92		$ 18.86
Diluted	$ 14.82		$ 18.75

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

(Concluded)

TOPKEY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	Equity Attributable to Owner of the Company
	Common Shares (Note 17)	Capital Surplus (Note 17)	Retained Earnings (Note 17)			Other Equity
			Legal Reserve	Special reserve	Unappropriated Earnings	Exchange Differences on Translating the Financial Statements of Foreign Operations	Unrealized Loss on Financial Assets at Fair Value through Other Comprehensive Income	Total	Non-controlling Interests (Note 11)
BALANCE AT JANUARY 1, 2024	$ 908,200	$ 1,639,532	$ 1,029,440	$ 330,291	$ 4,498,962	$(362,946)	$(10,000)	$ 8,033,479	$ 411,128
Appropriation of 2023 earnings
Legal reserve	-	-	141,538	-	(141,538)	-	-	-	-
Special reserve	-	-	-	42,655	(42,655)	-	-	-	-
Cash dividends distributed by the Company	-	-	-	-	(771,970)	-	-	(771,970)	(771,970)
Cash dividends distributed by the subsidiaries	-	-	-	-	-	-	-	(116,535)	(116,535)
	-	-	141,538	42,655	(956,163)	-	-	(771,970)	(116,535)
Increase in non-controlling interests	-	-	-	-	-	-	-	8,904	8,904
Net profit for the year ended December 31, 2024	-	-	-	-	1,712,809	-	-	1,712,809	78,928
Other comprehensive income for the year ended December 31, 2024, net of income tax	-	-	-	-	-	232,801	-	232,801	20,961
Total comprehensive income for the year ended December 31, 2024	-	-	-	-	1,712,809	232,801	-	1,945,610	99,889
BALANCE AT DECEMBER 31, 2024	908,200	1,639,532	1,170,978	372,946	5,255,608	(130,145)	(10,000)	9,207,119	403,386
Appropriation of 2024 earnings
Legal reserve	-	-	171,281	-	(171,281)	-	-	-	-
Special reserve	-	-	-	(232,801)	232,801	-	-	-	-
Cash dividends distributed by the Company	-	-	-	-	(999,020)	-	-	(999,020)	(999,020)
Cash dividends distributed by the subsidiaries	-	-	-	-	-	-	-	(72,578)	(72,578)
	-	-	171,281	(232,801)	(937,500)	-	-	(999,020)	(72,578)
Net profit for the year ended December 31, 2025	-	-	-	-	1,354,594	-	-	1,354,594	119,389
Other comprehensive loss for the year ended December 31, 2025, net of income tax	-	-	-	-	-	(138,425)	-	(138,425)	(11,350)
Total comprehensive loss for the year ended December 31, 2025	-	-	-	-	1,354,594	(138,425)	-	1,216,169	108,039
BALANCE AT DECEMBER 31, 2025	$ 908,200	$ 1,639,532	$ 1,342,259	$ 140,145	$ 5,672,702	$(268,570)	$(10,000)	$ 9,424,268	$ 438,847

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

TOPKEY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax	$ 1,901,625	$ 2,427,069
Adjustments for:
Depreciation expenses	431,677	414,107
Expected credit loss	11,320	3,099
Finance costs	67,175	69,071
Interest income	(216,548)	(279,221)
Loss (gain) on disposal of property, plant and equipment	3,083	(1,527)
Reversal of impairment loss on property, plant and equipment	(864)	(224)
(Reversal of) write-downs of inventories	(44,106)	(5,620)
Net loss (gain) on unrealized foreign currency exchange	9,565	(17,272)
Amortization of prepayments	41,439	41,137
Profit from lease modification	10	-
Changes in operating assets and liabilities:
Trade receivables	437,249	(358,823)
Other receivables	24,734	(36,018)
Inventories	185,309	40,648
Other current assets	(21,097)	(46,875)
Notes payable	(1,000)	800
Trade payables	(66,158)	139,393
Other payables	959	58,315
Other current liabilities	(36,683)	99,665
Other non-current liabilities	53,369	29,661
Cash generated from operations	2,781,058	2,577,385
Interest received	222,131	281,028
Interest paid	(66,870)	(69,098)
Income tax paid	(727,402)	(792,726)
Net cash generated from operating activities	2,208,917	1,996,589
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property, plant and equipment	(450,801)	(724,401)
Proceeds from disposal of property, plant and equipment	5,281	12,467
Decrease (increase) in refundable deposits	1,689	(170)
Increase in other non-current assets	(37,051)	(15,327)
Increase in prepayments for equipment	(14,099)	(4,464)
Net cash used in investing activities	(494,981)	(731,895)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term borrowings	1,274,305	2,766,508
Repayments of short-term borrowings	(3,357,479)	(2,165,703)
Proceeds from long-term borrowings	158,617	428,416
Repayments of long-term borrowings	(80,298)	(49,159)
Decrease in guarantee deposits	286	22
		(Continued)

TOPKEY CORPORATION AND SUBSIDIARIES

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

	2025	2024
Repayments of the principal portion of lease liabilities	$ (20,595)	$ (45,820)
Cash dividends distributed to owners of the Company	(999,020)	(771,970)
Cash dividends distributed to non-controlling interests	(72,578)	(116,535)
Changes in non-controlling interests	-	8,904
Net cash (used in) generated from financing activities	(3,096,762)	54,663
EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH HELD IN FOREIGN CURRENCIES	(153,152)	212,358
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(1,535,978)	1,531,715
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR	7,018,422	5,486,707
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	$ 5,482,444	$ 7,018,422

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

TOPKEY CORPORATION AND SUBSIDIARIES

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

1. GENERAL INFORMATION

TOPKEY CORPORATION (the "Company") was incorporated in the Republic of China (ROC) in July 1980; and is mainly engaged in the production, processing, sale, international trading and agency services of sporting goods, carbon fiber products, glass fiber products, and composite materials.

The Company's shares were listed and have been trading on the Taiwan Stock Exchange since October 2013.

The consolidated financial statements of the Company and its subsidiaries (referred to collectively as the "Group") are presented in the Company's functional currency, the New Taiwan dollar.

2. APPROVAL OF FINANCIAL STATEMENTS

The consolidated financial statements were approved by the Company's board of directors on March 12, 2026.

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

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

Amendments to IAS 21 "Lack of Exchangeability"

The initial application of the Amendments to IAS 21 "Lack of Exchangeability" did not have a material impact on the Group's accounting policies.

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

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

Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments”

The amendments to the application guidance of classification of financial assets

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

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

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

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

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

The amendments to the application guidance of derecognition of financial liabilities

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

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

An entity shall apply the amendments retrospectively but is not required to restate prior periods. The effect of initially applying the amendments shall be recognized as an adjustment to the opening balance at the date of initial application. An entity may restate prior periods if, and only if, it is possible to do so without the use of hindsight.

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

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

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

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

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

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

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

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

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

The Group shall use operating profit or loss as the starting point when presenting cash flows from operating activities under the indirect method.
Interest and dividends received by the Group shall be classified as investing activities, while interest and dividends paid shall be classified as financing activities. However, if, after assessment, the

Group has a specific main operating activity, it shall determine how to classify dividends received, interest received and interest paid in the statement of cash flows by referring to how it classifies dividend income, interest income and interest expense in the statement of profit or loss. The total of each of these cash flows shall be classified in a single category in the statement of cash flows.

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

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

a. Statement of compliance

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

b. Basis of preparation

The consolidated financial statements have been prepared on the historical cost basis except for financial instruments which are measured at fair value.

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

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

c. Classification of current and noncurrent assets and liabilities

Current assets include:

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

Current liabilities include:

Liabilities held primarily for the purpose of trading;
Liabilities due to be settled within 12 months after the reporting period; and
Liabilities for which the Group does not have the substantial right at the end of the reporting period to defer settlement for at least 12 months after the reporting period.

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

d. Basis of consolidation

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

Income and expenses of subsidiaries acquired or disposed of during the period are included in the consolidated statement of profit or loss and other comprehensive income from the effective dates of acquisitions up to the effective dates of disposals, as appropriate.

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

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

When the Group loses control of a subsidiary, a gain or loss is recognized in profit or loss and is calculated as the difference between (i) the aggregate of the fair value of the consideration received and any investment retained in the former subsidiary at its fair value at the date when control is lost and (ii) the assets (including any goodwill) and liabilities and any non-controlling interests of the former subsidiary at their carrying amounts at the date when control is lost. The Group accounts for all amounts recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required had the Group directly disposed of the related assets or liabilities.

See Note 11 and Table 5 and 6 for detailed information on subsidiaries (including the percentage of ownership and main business).

e. Foreign currencies

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

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

Non-monetary items measured at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Exchange differences arising from the retranslation of non-monetary items are included in profit or loss for the period except for exchange differences arising from the retranslation of non-monetary items in respect of which gains and losses are recognized directly in other comprehensive income, in which case, the exchange differences are also recognized directly in other comprehensive income.

Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rate at the date of the transaction and are not retranslated.

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

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

f. Inventories

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

g. Property, plant and equipment

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

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

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

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

h. Impairment of property, plant and equipment and right-of-use assets

At the end of each reporting period, the Group reviews the carrying amounts of its property, plant and equipment, right-of-use assets, and intangible assets, to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Group estimates 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 cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount, with the resulting impairment loss recognized in profit or loss.

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

i. Financial instruments

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

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

Financial assets

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

a) Measurement categories

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

i. Financial assets at amortized cost

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

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

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

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

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

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

ii. Investments in equity instruments at FVTOCI

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

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

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

b) Impairment of financial assets

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

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

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

c) Derecognition of financial assets

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

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

Equity instruments

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

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

The repurchase of the Company’s own equity instruments is recognized in and deducted directly from equity, and its carrying amounts are calculated based on weighted average by share types. No gain or loss is recognized in profit or loss on the purchase, sale, issuance or cancellation of the Company’s own equity instruments.

Financial liabilities

a) Subsequent measurement

All financial liabilities are measured at amortized cost using the effective interest method.

b) Derecognition of financial liabilities

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

j. Revenue recognition

Revenue from the sale of goods

Revenue from the sale of goods comes from sales of sporting goods, aviation products, and medical products. Sales of sporting goods, aviation products, and medical products are recognized as revenue when the goods are shipped because it is the time when the customer has full discretion over the manner of distribution and price to sell the goods, has the primary responsibility for sales to future customers and bears the risks of obsolescence. Revenue and trade receivables are recognized concurrently.

Revenue from the rendering of services

Revenue from the rendering of services comes from professional labor services. The revenue and trade receivables are recognized by contract.

k. Leasing

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

The Group as lessor

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

Lease payments less any lease incentives payable from operating leases are recognized as income on a straight-line basis over the terms of the relevant leases. Initial direct costs incurred in obtaining operating leases are added to the carrying amounts of the underlying assets and recognized as expenses on a straight-line basis over the lease terms.

The Group as lessee

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

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

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

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

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in a lease term, the Group remeasures the lease liabilities with a corresponding adjustment to the right-of-use-assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. Lease liabilities are presented on a separate line in the consolidated balance sheets.

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

Borrowing costs

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

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

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

m. Government grants

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

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

n. Employee benefits

Short-term employee benefits

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

Retirement benefits

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

o. Taxation

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

Current tax

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

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

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

Deferred tax

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

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

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

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

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

Current and deferred tax for the year

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

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

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

When developing material accounting estimates, the Group considers the possible impact on the cash flow projection, growth rates, discount rates, profitabilities and other relevant material estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.

Based on the assessment of the Group's management, the accounting policies, estimates, and assumptions adopted by the Group have not been subject to material accounting judgements, estimates and assumptions uncertainty.

6. CASH AND CASH EQUIVALENTS

	December 31
	2025	2024
Cash on hand	$ 1,160	$ 1,172
Checking accounts and demand deposits	1,763,425	3,235,007
Cash equivalents
Time deposits	3,717,859	3,782,243
	$ 5,482,444	$ 7,018,422
Annual interest rate (%)
Demand deposits	0.0001-4.25	0.0001-4.60
Time deposits	1.50-4.02	1.25-4.85

7. FINANCIAL ASSETS AT AMORTIZED COST - CURRENT

	December 31
	2025	2024
Restricted deposits	$ 20,047	$ 20,278
Annual interest rate (%)
Restricted deposits	1.500-1.705	1.500-1.705

Refer to Note 25 for the pledged of restricted deposits.

8. TRADE RECEIVABLES

	December 31
	2025	2024
At amortized cost
Gross carrying amount	$ 1,586,993	$ 2,075,459
Less: Allowance for impairment loss	(25,281)	(16,128)
	$ 1,561,712	$ 2,059,331

The average credit period of sales of goods is 60 to 120 days. No interest was charged on trade receivables. The Group adopted a policy of only dealing with entities that are rated the equivalent of investment grade or higher and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. Credit rating information is obtained from independent rating agencies where available, or if such information is not available, the Group uses other publicly available financial information or its own trading records to rate its major customers. The Group's exposure and the credit ratings of its counterparties are continuously monitored and the aggregate value of transactions concluded is spread amongst approved counterparties. Credit exposure is controlled by counterparty limits that are reviewed and approved by the risk management committee annually.

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

The Group measures the loss allowance for trade receivables at an amount equal to lifetime ECLs. The expected credit losses on trade receivables are estimated by reference to the past default experience of the debtor and an analysis of the debtor's current financial position, adjusted for general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecasted direction of economic conditions at the reporting date. As the Group's historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished according to the Group's different customer base.

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

The loss allowance of trade receivables of the Group were as follows:

	Not Past Due	Past Due 30-90 Days	Past Due 91-180 Days	Past Due 181-364 Days	Past Due More than 365 Days	Total
December 31, 2025
Expected credit loss rate (%)	-	5	25	50	100
Gross carrying amount	$ 1,553,160	$ 498	$ 176	$ 15,894	$ 17,265	$ 1,586,993
Loss allowance	-	(25)	(44)	(7,947)	(17,265)	(25,281)
Amortized cost	$ 1,553,160	$ 473	$ 132	$ 7,947	$ -	$ 1,561,712
December 31, 2024
Expected credit loss rate (%)	-	5	25	50	100
Gross carrying amount	$ 2,049,790	$ 8,521	$ 1,527	$ 603	$ 15,018	$ 2,075,459
Loss allowance	-	(426)	(382)	(302)	(15,018)	(16,128)
Amortized cost	$ 2,049,790	$ 8,095	$ 1,145	$ 301	$ -	$ 2,059,331

The movements of the loss allowance were as follows:

For the Year Ended December 31
2025
	Trade Receivables	Other Receivables
Balance at January 1	$ 16,128	$ -
Net remeasurement of loss allowance	11,244	76
Amounts written off	(2,119)	-
Foreign exchange gains and losses	28	-
Balance at December 31	$ 25,281	$ 76
For the Year Ended December 31
2024
	Trade Receivables	Other Receivables
Balance at January 1	$ 12,998	$ -
Net remeasurement of loss allowance	3,099	-
Foreign exchange gains and losses	31	-
Balance at December 31	$ 16,128	$ -

9. INVENTORIES

December 31
	2025	2024
Raw materials	$ 483,061	$ 579,088
Work in progress	329,938	403,668
Finished goods	437,002	388,892
Merchandise	113,487	154,086
	$ 1,363,488	$ 1,525,734

The cost of inventories recognized as cost of goods sold for the years ended December 31, 2025 and 2024 was $5,953,019 thousand and $6,170,821 thousand, respectively.

Operating costs include:

	For the Year Ended December 31
	2025	2024
Inventory write-downs reversed	$ (44,106)	$ (5,620)

Inventory write-downs were reversed as a result of increased selling price in markets.

10. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME NON-CURRENT

	December 31
	2025	2024
Unlisted ordinary shares
Yue Pfong International Technology Corp. (Yue Pfong)	$ -	$ -

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

11. SUBSIDIARIES

a. Subsidiaries included in the consolidated financial statements were as follows:

Investor	Investee	Proportion of Ownership (%)
		December 31, 2025	December 31, 2024
The Company	New Score Holding Limited (NSH)	100	100
	Topkey (Vietnam) Corporation Company Limited (Topkey (VN) Corp)	100	100
	XPT Precision Company Limited (XPT Taiwan)	70	70
NSH	EIC Holding Limited (EIC)	76	76
	Musonic Corporation (Musonic)	100	100
	New Score Investment Limited (NSI)	100	100
	XPT Investment Co., Limited (XPT Investment)	70	70
Musonic	Xiamen Keentech Composite Technology Co., Ltd. (Keentech)	64	64
NSI	Keentech	36	36
	Xiamen Valver Color Sticker Co., Ltd. (Valver)	100	100
EIC	Xiamen Yeu Chuan Composite Technology Co., Ltd. (Yeu Chuan)	100	100
XPT Investment	Xiamen Xin Hong Zhou Precision Technology Co., Ltd. (Xin Hong Zhou)	100	100

Refer to Table 5 and 6 following the Notes to Consolidated Financial statements for information on the place of incorporation and principal places of business for each subsidiary.

In consideration of the strategic development and comprehensive supply chain, the Group has established a subsidiary of XPT Taiwan and acquired an ownership interest of 70% for $21,096 thousand with the registration completed on November 14, 2024.

b. Details of subsidiaries that have material non-controlling interests

		Proportion of Ownership and Voting Rights Held by Non-controlling Interests (%)
		December 31
Name of Subsidiary		2025	2024
EIC		24	24
XPT Investment		30	30
	Profit (Loss) Allocated to Non-controlling Interests	Accumulated Non-controlling Interests
	For the Year Ended December 31	December 31
Name of Subsidiary	2025	2024	2025
EIC	$ 10,627	$ 10,921	$ 93,424
XPT Investment	101,767	68,036	329,553
	$ 112,394	$ 78,957	$ 422,977

Summarized financial information in respect of each of the Group's subsidiaries that has material non-controlling interests is set out below. The summarized financial information below represents amounts before intragroup eliminations.

EIC and EIC's subsidiaries:

	December 31
	2025	2024
Current assets	$ 454,086	$ 549,973
Non-current assets	93,143	118,917
Current liabilities	(143,840)	(207,336)
Non-current liabilities	(6,851)	(22,372)
Equity	$ 396,538	$ 439,182
Equity attributable to:
Owners of EIC	$ 303,114	$ 335,711
Non-controlling interests of EIC	93,424	103,471
	$ 396,538	$ 439,182

	For the Year Ended December 31
	2025	2024
Revenue	$ 683,619	$ 670,596
Profit for the year	$ 45,107	$ 46,353
Other comprehensive income (loss) for the year	(13,502)	26,880
Total comprehensive income for the year	$ 31,605	$ 73,233
Profit attributable to:
Owners of EIC	$ 34,480	$ 35,432
Non-controlling interests of EIC	10,627	10,921
	$ 45,107	$ 46,353
Total comprehensive income attributable to:
Owners of EIC	$ 24,159	$ 55,979
Non-controlling interests of EIC	7,446	17,254
	$ 31,605	$ 73,233
Cash inflow/(outflow) from:
Operating activities	$ 131,241	$ 110,538
Investing activities	(21,801)	(18,499)
Financing activities	(166,471)	(182,702)
Net cash outflow	$ (57,031)	$ (90,663)
Dividends paid to non-controlling interest of EIC	$ 17,493	$ 56,753

XPT Investment and XPT Investment's subsidiaries:

	December 31
	2025	2024
Current assets	$ 1,099,687	$ 936,315
Non-current assets	194,165	178,601
Current liabilities	(183,348)	(134,191)
Equity	$ 1,110,504	$ 980,725
Equity attributable to:
Owners of XPT Investment	$ 780,951	$ 689,685
Non-controlling interests of XPT Investment	329,553	291,040
	$ 1,110,504	$ 980,725

	For the Year Ended December 31
	2025	2024
Revenue	$ 1,204,873	$ 899,405
Profit for the year	$ 342,931	$ 229,263
Other comprehensive (loss) income for the year	(27,529)	49,294
Total comprehensive income for the year	$ 315,402	$ 278,557
Profit attributable to:
Owners of XPT Investment	$ 241,164	$ 161,227
Non-controlling interests of XPT Investment	101,767	68,036
	$ 342,931	$ 229,263
Total comprehensive income attributable to:
Owners of XPT Investment	$ 221,804	$ 195,893
Non-controlling interests of XPT Investment	93,598	82,664
	$ 315,402	$ 278,557
Cash inflow/(outflow) from:
Operating activities	$ 331,698	$ 221,952
Investing activities	(54,545)	(18,033)
Financing activities	(196,494)	(203,573)
Net cash inflow	$ 80,659	$ 346
Dividends paid to non-controlling interest of XPT Investment	$ 55,085	$ 59,782

12. PROPERTY, PLANT AND EQUIPMENT

	For the Year Ended December 31, 2025
	Beginning Balance	Additions	Disposals	Reclassifications	Effects of Foreign Currency Exchange Differences	Ending Balance
Cost
Land	$ 52,939	$ -	$ -	$ -	$ -	$ 52,939
Buildings	3,574,980	184,137	(22,147)	728,560	(42,582)	4,422,948
Machinery equipment	1,387,933	59,270	(196,247)	84,050	(26,367)	1,308,639
Transportation equipment	21,549	518	(1,252)	1,248	(374)	21,689
Other equipment	498,866	124,352	(131,612)	21,253	(8,254)	504,605
Construction in progress	786,973	100,944	-	(801,964)	(1,983)	83,970
	6,323,240	$ 469,221	$ (351,258)	$ 33,147	$ (79,560)	6,394,790
Accumulated depreciation
Buildings	718,164	$ 146,528	$ (22,108)	$ -	$ (11,364)	831,220
Machinery equipment	623,091	132,207	(168,803)	-	(10,111)	576,384
Transportation equipment	11,192	3,743	(1,252)	-	(111)	13,572
Other equipment	270,524	115,927	(130,147)	(2)	(5,323)	250,979
	1,622,971	$ 398,405	$ (322,310)	$ (2)	$ (26,909)	1,672,155
Accumulated impairment
Machinery equipment	65,535	$ -	$ (21,448)	$ -	$ (599)	43,488
Other equipment	1,461	-	-	-	(28)	1,433
	66,996	$ -	$ (21,448)	$ -	$ (627)	44,921
	$ 4,633,273					$ 4,677,714

	For the Year Ended December 31, 2024
	Beginning Balance	Additions	Disposals	Reclassifications	Effects of Foreign Currency Exchange Differences	Ending Balance
Cost
Land	$ 52,939	$ -	$ -	$ -	$ -	$ 52,939
Buildings	1,525,695	199,217	(95,593)	1,862,536	83,125	3,574,980
Machinery equipment	1,347,015	40,270	(114,500)	57,309	57,839	1,387,933
Transportation equipment	19,917	2,062	(1,169)	-	739	21,549
Other equipment	476,207	105,729	(135,725)	32,263	20,392	498,866
Construction in progress	2,356,645	374,433	-	(1,953,715)	9,610	786,973
	5,778,418	$ 721,711	$ (346,987)	$ (1,607)	$ 171,705	6,323,240
Accumulated depreciation
Buildings	678,245	$ 105,218	$ (95,593)	$ -	$ 30,294	718,164
Machinery equipment	576,379	126,190	(102,162)	-	22,684	623,091
Transportation equipment	8,131	3,929	(1,169)	-	301	11,192
Other equipment	269,493	124,020	(134,610)	-	11,621	270,524
	1,532,248	$ 359,357	$ (333,534)	$ -	$ 64,900	1,622,971
Accumulated impairment
Machinery equipment	66,748	$ -	$ (2,737)	$ -	$ 1,524	65,535
Other equipment	1,390	-	-	-	71	1,461
	68,138	$ -	$ (2,737)	$ -	$ 1,595	66,996
	$ 4,178,032					$ 4,633,273

The Group assessed that some of the machinery equipment could be used for other purpose. Therefore, the reversal of impairment loss of $864 thousand and $224 thousand was recognized for the years ended December 31, 2025 and 2024, respectively, (the reversal of impairment loss has been included in operating revenue and expense in the consolidated statements of comprehensive income), and the decrease in accumulated impairment was mainly due to the disposal of machinery equipment that had been impaired.

Except for equipment which acquisition by project (which is recognized in other equipment), depreciation of property, plant and equipment is calculated on a straight-line basis over their estimated useful lives as follows:

Buildings
Main buildings	20-55 years
Ancillary work	5-50 years
Electromechanical power equipment	20 years
Machinery equipment	2-30 years
Transportation equipment	5-10 years
Other equipment	2-20 years

13. LEASE ARRANGEMENTS

a. Right-of-use assets

	December 31
	2025	2024
Carrying amounts
Land	$ 464,225	$ 499,156
Buildings	1,820	10,782
	$ 466,045	$ 509,938

	For the Year Ended December 31,
	2025	2024
Additions to right-of-use assets	$ -	$ 11,331
Depreciation of right-of-use assets
Land	$ 24,170	$ 24,433
Buildings	8,668	29,674
Transportation equipment	-	196
	$ 32,838	$ 54,303

b. Lease liabilities

	December 31
	2025	2024
Carrying amounts
Current	$ 17,025	$ 20,715
Non-current	$ 205,362	$ 223,739

Range of discount rates for lease liabilities was as follows:

	December 31
	2025	2024
Land	1.35%-4%	1.35%-4%
Buildings	1.1%-4.75%	1.1%-4.75%

c. Material leasing activities and terms

The Group leases certain transportation equipment for the use of operation with lease terms of 3 years. These arrangements do not contain renewal or purchase options.

The Group also leases land and buildings for the use of plants and offices with lease terms of 2 to 50 years. The lease contract for land located that lease payments will be adjusted on the basis of changes in the consumer price index or announced land value prices. The Group does not have bargain purchase options to acquire the leasehold land and buildings at the end of the lease terms.

d. Other lease information

	For the Year Ended December 31,
	2025	2024
Expenses relating to short-term lease	$ 9,102	$ 1,034
Expenses relating to low value asset leases	$ 52	$ 52
Total cash outflow for leases	$ (33,780)	$ (51,899)

The Group leases certain equipment which qualify as short-term leases and which qualify as low-value asset leases. The Group has elected to apply the recognition exemption for these leases and thus, did not recognize right-of-use assets and lease liabilities for these leases.

14. BORROWINGS

a. Short-term borrowings

	December 31
	2025	2024
Unsecured borrowings
Line of credit borrowings	$ 329,364	$ 2,527,437
Annual interest rate range (%)
Line of credit borrowings	1.50-4.46	2.52-5.90

b. Long-term borrowings

	December 31
	2025	2024
Unsecured borrowings
Line of credit borrowings	$ 1,100,463	$ 1,029,377
Less: Current portion	(241,967)	(73,187)
	$ 858,496	$ 956,190
Annual interest rate range (%)	1.225-3.60	2.80-6.70
	Between	Between
The last due date	December 2027 and May 2030	June 2026 and May 2030

15. OTHER PAYABLES

	December 31
	2025	2024
Salaries and bonuses	$ 446,157	$ 435,559
Compensation of employees	85,691	95,619
Remuneration of directors	30,886	34,864
Acquisition of equipment	38,578	24,467
Others	63,732	67,989
	$ 665,044	$ 658,498

16. RETIREMENT BENEFIT PLANS

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

NSH, Musonic, NSI, EIC and XPT Investment are an investment holding or trade company; therefore, there is no retirement policy. Keentech, Valver, Yeu Chuan, and Xin Hong Zhou pay endowment insurance in accordance with the regulations of mainland China. They are approved by local governments to contribute

according to local regulations to local governments. Topkey (VN) Corp contributes retirement pension fund on a monthly basic under the regulations of local governments to local governments.

17. EQUITY

a. Capital stock

	December 31
	2025	2024
Authorized shares (in thousands of shares)	180,000	180,000
Authorized capital	$ 1,800,000	$ 1,800,000
Issued and paid shares (in thousands of shares)	90,820	90,820
Issued capital	$ 908,200	$ 908,200

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

b. Capital surplus

	December 31
	2025	2024
May be used to offset a deficit, distributed as cash dividends, or transferred to share capital (1)
Additional paid-in capital	$ 1,549,452	$ 1,549,452
The difference between the consideration received or paid and the carrying amount of the subsidiaries’ net assets during actual disposal or acquisition	52,190	52,190
May only be used to offset a deficit (2)
Gain on disposal of assets	35,824	35,824
Disgorgement exercise	204	204
May not be used for any purpose
Employee share options	1,862	1,862
	$ 1,639,532	$ 1,639,532

The capital surplus generated from the excess of the issuance price over the par value of capital stock, the difference between the consideration received or paid and the carrying amount of the subsidiaries' net assets during actual disposal or acquisition may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital, limited to a certain percentage of the Company's capital surplus.
Such capital surplus may be used to offset a deficit.

c. Retained earnings and dividend policy

The shareholders of the Company held their regular meeting on May 31, 2024 and in that meeting, resolved the amendments to the Company’s Articles of Incorporation (the “Articles”). The amendments explicitly stipulate that the proposal for profit distribution or offsetting of losses should be made at the end of each six months of the fiscal year, the board of directors of the Company is authorized to adopt a special resolution to distribute dividends and bonuses in cash and a report of such distribution should be submitted in the shareholders’ meeting.

Under the dividends policy as set forth in the amended Articles after the amendments, after closing of accounts, if there is profit, the Company shall first pay the income tax according to the law, make up the losses for the preceding years, then set aside a legal reserve of 10% of the net profit, and appropriate or reverse special surplus reserve pursuant to the regulations of the competent authority; the remaining profit shall be distributed to pay the dividend. When the Board of Directors prepares the proposal of distribution in the form of new shares to be issued by the company, in case of any earnings, along with the undistributed earnings at the beginning of the period, such a distribution shall be made after a resolution is adopted by the shareholders’ meeting.

In accordance with Paragraph 5, Article 240 of the Company Act, the Company shall authorize the Board of Directors by a resolution adopted by a majority of the shareholders present who represent two-thirds or more of the total number of its outstanding shares of the company, to pay in the form of cash the distributable dividends and bonuses, or legal reserve and capital reserve in whole or in part, as stipulated in Paragraph 1, Article 241 of the Company Act; a report thereof shall be submitted to the shareholders’ meeting.

The earnings distribution or loss make-up of the Company shall be made at the end of each six months of fiscal year. The earnings distribution in cash shall be made by a resolution of the Board of Directors meeting with a report submitted to the shareholders’ meeting, pursuant to Article 228-1, and Paragraph 5 of Article 240, the Company Act; it is not necessary to be submitted to the shareholders’ meeting for acceptance.

The proposal of surplus earning distribution or loss off setting for the first half of fiscal year should be forwarded with the business report and financial statements to supervisors for their auditing, and afterwards be submitted to the Board of Directors for approval. The Company distributing surplus earning in the form of new shares to be issued by the Company in accordance with the aforementioned provision shall follow the provisions of the Article 240 of the Company Act, if such surplus earning is distributed in the form of cash, it shall be approved by a meeting of the Board of Directors.

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

Under the dividends policy as set forth in the Articles before the amendments, the proposal for profit distribution or offsetting of losses may be made at the end of each six months of the fiscal year. When allocating profit, the company shall first estimate and reserve the taxes to be paid, offset its losses, set legal capital of the remaining earnings, until the legal reserve equals the Company’s paid-in capital. The Board of Directors shall formulate a profit distribution or loss compensation proposal and submit it along with the business report and financial statements to the Audit Committee for review and later to the Board of Directors for resolution. If the distribution is done in the form of new share issuance, the proposal shall be complied with the Company Act in Article 240; and if the distribution is done in the form of cash, the proposal shall be resolved by the Board of Directors.

Where the Company made a profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside as legal reserve 10% of the remaining profit, setting aside or reversing a special reserve, and then set aside or reverse special capital reserve in accordance with relevant laws or regulations; if here are profit left expect dividends, along with accumulated unappropriated earnings, submit it to the shareholders' meeting for resolution. For the policies on the distribution of compensation of employees and remuneration of directors after the amendment, refer to compensation of employees and remuneration of directors in Note 19.

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

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

	Appropriation of Earnings
	For the Year Ended December 31
	2024	2023
Legal reserve	$ 171,281	$ 141,538
(Reversal of) special reserve	$ (232,801)	$ 42,655
Cash dividends	$ 999,020	$ 771,970
Cash dividends per share (NT$)	$ 11	$ 8.5

The above 2024 appropriations for cash dividends had been resolved by the Company's board of directors on February, 2025; the other proposed appropriations were resolved by the shareholders in the shareholders' meetings on May, 2025 and 2024, respectively.

The appropriation of 2025 earnings which has been proposed by the Company's board of directors in March, 2026 was as follows:

	For the Year Ended December 31, 2025
Legal reserve	$ 135,459
Special reserve	$ 138,425
Cash dividends	$ 726,560
Cash dividends per share (NT$)	$ 8.0

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

d. Special reserve

On the initial adoption of IFRS Accounting Standards, the retained earnings was not enough, the Company appropriated a special reserve at $126,886 thousand that was the same as the net increase in retained earnings.

The appropriations of earning for 2024 and 2023, the Company (reversed) appropriated a special reserve at $(232,801) thousand and $42,655 thousand because of the deduction of other equity in the end of reporting period.

18. REVENUE

	For the Year Ended December 31
	2025	2024
Revenue from contracts with customers
Revenue from sale of goods	$ 9,202,655	$ 9,478,115
a. Contract balances
	December 31, 2025	December 31, 2024
Trade receivables (Note 8)	$ 1,561,712	$ 2,059,331

b. Disaggregation of revenue

Refer to Note 29 for the information about the disaggregation of revenue.

19. NET PROFIT FROM CONTINUING OPERATIONS

a. Finance costs

	For the Year Ended December 31
	2025	2024
Interest on bank loans	$ 65,996	$ 71,689
Interest on lease liabilities	4,031	4,993
Less: capitalized interest	(2,852)	(7,611)
	$ 67,175	$ 69,071

Information on capitalized interest is as follows:

	For the Year Ended December 31
	2025	2024
Capitalized interest	$ 2,852	$ 7,611
Capitalization rates (%)	1.225	1.1-2.0

b. Employee benefits expense and depreciation

	Operating Costs	Operating Expenses	Total
For the Year Ended December 31, 2025
Employee benefit expense
Salary expenses	$ 1,668,515	$ 813,049	$ 2,481,564
Retirement pension	163,853	58,040	221,893
Other employee benefits	150,922	93,327	244,249
Depreciation expenses	262,897	168,780	431,677

	Operating Costs	Operating Expenses	Total
For the Year Ended December 31, 2024
Employee benefit expense
Salary expenses	$ 1,673,758	$ 782,509	$ 2,456,267
Retirement pension	146,173	55,588	201,761
Other employee benefits	146,992	100,246	247,238
Depreciation expenses	275,669	138,438	414,107

c. Compensation of employees and remuneration of directors

According to the Articles, the Company accrued compensation of employees and remuneration of directors at rates of $3% - 10%$ and no higher than $5%$ , respectively, of net profit before income tax, compensation of employees, and remuneration of directors. In accordance with the amendments to the Securities and Exchange Act in August 2024, the shareholders of the Company resolved the amendments to the Company's Articles at their 2025 regular meeting. The amendments explicitly stipulate the allocation of no less than $30%$ of the compensation of employees as compensation distributions for non-executive employees. The compensation of employees (including non-executive employees) and the remuneration of directors for the years ended December 31, 2025 and 2024, which have been approved by the Company's board of directors in March, 2026 and February, 2025, respectively, are as follows:

	For the Year Ended December 31
	2025		2024
	Accrual Rate	Amount	Accrual Rate	Amount
Compensation of employees	4.79%	$ 82,208	4.20%	$ 92,786
Remuneration of directors	1.80%	30,886	1.58%	34,864

If there is a change in the amounts after the annual consolidated financial statements were authorized for issuance, the differences will be recorded as a change in the accounting estimate in the following year.

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

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

20. INCOME TAXES

a. Major components of income tax expense recognized in profit or loss

	For the Year Ended December 31
	2025	2024
Current tax
In respect of the current year	$ 472,019	$ 687,643
Income tax on unappropriated earnings	38,765	22,961
Adjustments for prior years	(64,038)	21,981
	446,746	732,585
Deferred tax
In respect of the current year	(17,086)	(89,305)
Adjustments for prior years	(2,018)	(7,948)
	(19,104)	(97,253)
Income tax expense recognized in profit or loss	$ 427,642	$ 635,332

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

	For the Year Ended December 31
	2025	2024
Income tax expense calculated at the statutory rate	$ 544,232	$ 713,000
Permanent differences	(89,539)	(114,766)
Temporary differences	240	104
Income tax on unappropriated earnings	38,765	22,961
Adjustments for prior years’ tax	(66,056)	14,033
Income tax expense recognized in profit or loss	$ 427,642	$ 635,332

b. Deferred tax assets and liabilities

Changes in deferred tax assets and liabilities are as follows:

	For the Year Ended December 31, 2025
	Beginning Balance	Recognized in Profit or Loss	Recognized in Other Comprehensive Income	Ending Balance
Deferred Tax Assets
Temporary differences
Exchange differences on translating the financial statements of foreign operations	$ 4,164	$ -	$ 34,606	$ 38,770
Deferred revenue	4,488	(2,575)	-	1,913
Property, plant and equipment impairment loss	3,257	(2,212)	-	1,045
Unrealized loss on inventories	17,196	(6,153)	-	11,043
Unrealized exchange losses	-	277	-	277
Others	1,130	724	-	1,854
	$ 30,235	$ (9,939)	$ 34,606	$ 54,902
				(Continued)

	Beginning Balance	Recognized in Profit or Loss	Recognized in Other Comprehensive Income	Ending Balance
Deferred Tax Liabilities
Temporary differences
Investment gains on investments accounted for using equity method	$ 400,402	$ (23,944)	$ -	$ 376,458
Unrealized exchange gains	6,016	(5,099)	-	917
Reserve for land value increment tax	8,707	-	-	8,707
	$ 415,125	$ (29,043)	$ -	$ 386,082
				(Concluded)
	For the Year Ended December 31, 2024
	Beginning Balance	Recognized in Profit or Loss	Recognized in Other Comprehensive Income	Ending Balance
Deferred Tax Assets
Temporary differences
Exchange differences on translating the financial statements of foreign operations	$ 62,364	$ -	$ (58,200)	$ 4,164
Deferred revenue	6,721	(2,233)	-	4,488
Property, plant and equipment impairment loss	5,220	(1,963)	-	3,257
Unrealized loss on inventories	18,339	(1,143)	-	17,196
Unrealized exchange losses	7,819	(7,819)	-	-
Others	1,238	(108)	-	1,130
	$ 101,701	$ (13,266)	$ (58,200)	$ 30,235
Deferred Tax Liabilities
Temporary differences
Investment gains on investments accounted for using equity method	$ 516,937	$ (116,535)	$ -	$ 400,402
Unrealized exchange gains	-	6,016	-	6,016
Reserve for land value increment tax	8,707	-	-	8,707
	$ 525,644	$ (110,519)	$ -	$ 415,125

c. Income tax assessments

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

21. EARNINGS PER SHARE

	Net Profit Attributable to Owners of the Company	Number of Shares (In Thousands)	Earnings Per Share (NT$)
For the Year Ended December 31, 2025
Basic earnings per share
Net income for the year attributable to owners of the Company	$ 1,354,594	90,820	$14.92
Effect of potentially dilutive ordinary shares:
Employees’ compensation	-	577
Diluted earnings per share
Net income for the year attributable to owners of the Company plus effect of potentially dilutive ordinary shares	$ 1,354,594	91,397	$14.82
For the Year Ended December 31, 2024
Basic earnings per share
Net income for the year attributable to owners of the Company	$ 1,712,809	90,820	$18.86
Effect of potentially dilutive ordinary shares:
Employees’ compensation	-	528
Diluted earnings per share
Net income for the year attributable to owners of the Company plus effect of potentially dilutive ordinary shares	$ 1,712,809	91,348	$18.75

If the Group offered to settle the compensation of employees in cash or shares, the Group assumes that the entire amount of the compensation will be settled in shares, and the resulting potential shares are included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.

22. CAPITAL MANAGEMENT

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

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

Key management personnel of the Group review the capital structure on a quarterly basis. As part of this review, the key management personnel of the Group consider the cost of capital and the risks associated with each class of capital. Based on the recommendations of the key management personnel, the Group expects to balance its capital structure through the payment of dividends, issuance of new shares, repurchase of shares and issuance of new debt or repayment of old debt.

23. FINANCIAL INSTRUMENTS

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

Management of the Group consider the carrying amounts of the Group’s financial instruments that are not measured at fair value as close to their fair values or their fair values could not be reasonably measured.

b. Categories of financial instruments

	December 31
	2025	2024
Financial assets
Financial assets at amortized cost	$ 7,129,337	$ 9,196,378
Financial liabilities
Financial liabilities at amortized cost	2,617,465	4,799,606

The balances include financial assets at amortized cost, which comprise cash and cash equivalents, financial assets at amortized cost, trade receivables, other receivables, and refundable deposits.

The balances include financial liabilities at amortized cost, which comprise short-term borrowings, notes payable and trade payables, other payables, long-term borrowings (including those due within one year), and guarantee deposits.

c. Financial risk management objectives and policies

The Group’s major financial instruments include equity and debt investments, trade receivables, trade payables, lease liabilities, and borrowings. The Group’s financial department provides services to the business, coordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the Group through internal risk reports which analyze exposures by degree and magnitude of risks. These risks include market risk (including foreign currency risk, interest rate risk), credit risk and liquidity risk.

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

Market risk

The Group’s activities exposed it primarily to the financial risks of changes in foreign currency exchange rates and interest rates.

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

a) Foreign currency risk

The Group enters into foreign currency denominated sales and purchases, which expose the Group to foreign currency risk. Exchange rate exposures are managed within approved policy parameters utilizing foreign exchange forward contracts.

The carrying amounts of the Group's foreign currency denominated monetary assets and monetary liabilities and of the derivatives exposed to foreign currency risk at the end of the year are set out in Note 27.

Sensitivity analysis

The Group is mainly exposed to the USD.

The following table details the Group's sensitivity to a 1% increase and decrease in the NTD against the relevant foreign currencies. The sensitivity rate used when reporting foreign currency risk internally to key management personnel and representing management's assessment of the reasonably possible change in foreign exchange rates is 1%. The sensitivity analysis included only outstanding foreign currency denominated monetary items, and adjusts their translation at the end of the year for a 1% change in foreign currency rates. The following table shows the amount by which pre-tax profit will change when the NTD increases or decreases by 1% against the relevant currency.

	For the Year Ended December 31
	2025	2024
Profit or loss	$ 39,327	$ 74,218

b) Interest rate risk

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

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

	December 31
	2025	2024
Fair value interest rate risk
Financial assets	$ 3,737,906	$ 3,802,521
Financial liabilities	895,267	3,132,638
Cash flow interest rate risk
Financial assets	1,763,425	3,234,007
Financial liabilities	756,947	668,630

Sensitivity analysis

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

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

For the Group's financial assets and liabilities with floating interest rates, if the interest rate were to increase or decrease by 1%, and all other variables were held constant, the Group's pre-tax profit for the years ended December 31, 2025 and 2024 would have decreased/increased by $10,065 thousand and $25,654 thousand, respectively.

Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Group. At the end of the year, the Group's maximum exposure to credit risk, which would cause a financial loss to the Group due to the failure of the counterparty to discharge its obligation and due to the financial guarantees provided by the Group, could be equal to the total of the following:

a) The carrying amount of the respective recognized financial assets as stated in the balance sheets; and b) The maximum amount the entity would have to pay if the financial guarantee is called upon, irrespective of the likelihood of the guarantee being exercised.

The Group adopted a policy of only dealing with creditworthy counterparties, as a means of mitigating the risk of financial loss from defaults. The Group uses other publicly available financial information and its own trading records to rate its major customers. The Group continuously monitors its exposure to credit risk and the credit ratings of its counterparties, and allocates the total transaction amount among the creditworthy customers. The Group's management also controls credit risk by reviewing the credit limits of its counterparties on an annual basis.

The Group also continuously evaluates the financial status of the customers of the accounts receivable, and purchases credit guarantee insurance contracts when necessary.

The Group's concentration of credit risk of 33% and 46% of total trade receivables as of December 31, 2025 and 2024, respectively, was attributable to the Group's five largest customers in the property construction business segment.

Liquidity risk

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

The Group relies on bank borrowings as a significant source of liquidity. The Group had available unutilized bank loan facilities set out as follows:

	December 31
	2025	2024
Unutilized bank loan limits	$ 11,987,086	$ 9,857,989

Liquidity and interest rate risk tables for non-derivative financial liabilities

The following table details the Group's remaining contractual maturities for its non-derivative financial liabilities with agreed upon repayment periods. The table has been drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Group can be required to pay.

	Less than 1 Year	More than 1 Years
December 31, 2025
Non-interest bearing liabilities	$ 1,187,107	$ 531
Lease liabilities	20,753	240,987
Floating interest rate liabilities	110,388	646,559
Fix interest rate liabilities	460,943	211,937
	$ 1,779,191	$ 1,100,014
December 31, 2024
Non-interest bearing liabilities	$ 1,242,541	$ 251
Lease liabilities	24,816	264,094
Floating interest rate liabilities	-	668,630
Fix interest rate liabilities	2,600,624	287,560
	$ 3,867,981	$ 1,220,535

Further information on maturity analysis of the above financial liabilities was as follows:

	Less than 1 Year	1-5 Years	5-10 Years	10-15 Years	15-20 Years	More than 20 Years
December 31, 2025
Non-interest bearing liabilities	$ 1,187,107	$ 531	$ -	$ -	$ -	$ -
Lease liabilities	20,753	75,364	94,205	42,807	8,541	20,070
Floating interest rate liabilities	110,388	646,559	-	-	-	-
Fix interest rate liabilities	460,943	211,937	-	-	-	-
	$ 1,779,191	$ 934,391	$ 94,205	$ 42,807	$ 8,541	$ 20,070
December 31, 2024
Non-interest bearing liabilities	$ 1,242,541	$ 251	$ -	$ -	$ -	$ -
Lease liabilities	24,816	77,606	94,570	60,304	8,905	22,709
Floating interest rate liabilities	-	598,980	69,650	-	-	-
Fix interest rate liabilities	2,600,624	287,560	-	-	-	-
	$ 3,867,981	$ 964,397	$ 164,220	$ 60,304	$ 8,905	$ 22,709

24. TRANSACTIONS WITH RELATED PARTIES

Balances and transactions between the Company and its subsidiaries have been eliminated on consolidation and are not disclosed in this note.

Compensation of key management personnel

	For the Year Ended December 31
	2025	2024
Short-term employee benefits	$ 71,987	$ 75,398
Post-employment benefits	730	673
	$ 72,717	$ 76,071

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

25. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The following assets were provided as collateral for the deposits for electricity company and performance bond:

	December 31
	2025	2024
Financial assets at amortized cost	$ 20,047	$ 20,278

26. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

a. The Company insures liability insurance for products sold all regions of the world. The renewal period for bicycle products is from December 1, 2025 to December 1, 2026. The maximum compensation amount for a single event is US$6,000 thousand, and the cumulative compensation amount is US$8,000 thousand. The renewal period for helmet products is from April 1, 2025 to April 1, 2026. The maximum compensation amount for a single event is US$5,000 thousand, and the cumulative compensation amount is US$6,000 thousand. The renewal period for aviation products is from August 1, 2025 to August 1, 2026. The maximum compensation amount for a single event is US$1,000 thousand, and the cumulative compensation amount is US$2,000 thousand.

b. Unrecognized commitments were as follows:

	December 31
	2025	2024
Acquisition of property, plant and equipment	$ 92,703	$ 180,794

27. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The following information was aggregated by the foreign currencies other than the functional currencies of the Group entities and the exchange rates between the foreign currencies and respective functional currencies were disclosed. The significant financial assets and liabilities denominated in foreign currencies were as follows:

	Foreign Currency (In USD)	Exchange Rate	Carrying Amount (In NTD)
December 31, 2025
Financial assets
Monetary items	$ 171,361	31.438	$ 5,387,240
Financial liabilities
Monetary items	46,268	31.438	1,454,587
December 31, 2024
Financial assets
Monetary items	278,828	32.781	9,140,256
Financial liabilities
Monetary items	52,422	32.781	1,718,452

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

	For the Year Ended December 31
	2025		2024
Foreign Currency	Exchange Rate	Net Foreign Exchange Gains (Losses)	Exchange Rate	Net Foreign Exchange Gains (Losses)
NTD	1 (USD:NTD)	$ (26,789)	1 (USD:NTD)	$ 193,209
USD	31.19 (USD:NTD)	1,975	32.11 (USD:NTD)	2,942
RMB	4.34 (RMB:NTD)	(34,395)	4.46 (RMB:NTD)	70,064

28. SEPARATELY DISCLOSED ITEMS

a. Information on significant transactions:

Financing provided to others (None).
Endorsements/guarantees provided (Table 1).
Significant marketable securities held (excluding investments in subsidiaries, associates and joint ventures) (None).
Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 2).

Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 3).
Intercompany relationships and significant intercompany transactions (Table 4).

b. Information on investees (Table 5).

c. Information on investments in mainland China

Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the year, repatriations of investment income, and limit on the amount of investment in the mainland China area (Table 6)
Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses (Table 6):

a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the year. b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the year. c) The amount of property transactions and the amount of the resultant gains or losses. d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the year and the purposes. e) The highest balance, the ending balance, the interest rate range, and total current period interest with respect to the financing of funds. f) Other transactions that have a material effect on the profit or loss for the year or on the financial position, such as the rendering or receipt of services.

29. SEGMENT INFORMATION

Information reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance focuses on the types of goods or services delivered or provided. Specifically, the Group's reportable segments were as sporting products, aviation and medical products, and others.

a. Segment revenue and operating results

	Segment Revenue		Segment Profit or Loss
	2025	2024	2025	2024
Sporting products	$ 7,206,844	$ 7,616,984	$ 1,314,460	$ 1,465,024
Aviation and medical products	640,003	741,102	201,452	240,657
Others	1,355,808	1,120,029	205,923	171,237
Generated from continuing operating segment	$ 9,202,655	$ 9,478,115	1,721,835	1,876,918
Finance costs			(67,175)	(69,071)
				(Continued)

	Segment Revenue		Segment Profit or Loss
	2025	2024	2025	2024
Interest income			$ 216,548	$ 279,221
Government grants income			49,572	36,771
Other gains			45,568	45,507
(Loss) gain on disposal of property, plant and equipment			(3,083)	1,527
Net foreign exchange (loss) gain			(59,209)	266,215
Reversal of impairment loss on property, plant and equipment			864	224
Other losses			(3,295)	(10,243)
Income before income tax			$ 1,901,625	$ 2,427,069

Segment revenue reported above represents revenue generated from external customers. There were no intersegment sales for the years ended December 31, 2025 and 2024.

Segment profit represents the gains and losses earned by each segment excluding finance costs, interest income, government grants income, other gains, (loss) gain on disposal of property, plant and equipment, net foreign exchange (loss) gain, reversal of impairment loss on property, plant and equipment, other losses and income tax expense. This was the measure reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance.

b. Total segment assets and liabilities

The Group does not provide reporting segment information for operational decision maker, so the measurement of assets and liabilities are zero.

c. Geographical information

The Group operates in three principal geographical areas - Asia, Europe, and America.

Revenue from continuing operations of the Group from external customers by location of operations and information about its non-current assets by location of assets were as follows.

	Revenue from External Customers		Non-current Assets
	For the Year Ended December 31		December 31
	2025	2024	2025	2024
Asia	$ 5,471,497	$ 6,088,115	$ 5,203,093	$ 5,217,967
Europe	1,140,033	2,359,418	-	-
America	2,530,197	959,432	-	-
Others	60,928	71,150	-	-
	$ 9,202,655	$ 9,478,115	$ 5,203,093	$ 5,217,967

Non-current assets exclude deferred tax assets.

d. Information of major customers

Single customer contributed 10% or more to the Group’s revenue as below:

Name	For the Year Ended December 31
	2025		2024
	Amount	%	Amount	%
Customer A	$ 1,269,403	14	$ 1,677,442	18
Customer B	632,647	7	1,137,099	12

TABLE 1

TOPKEY CORPORATION AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

No.	Endorser/Guarantor	Endorse/Guarantee		Limit on Endorsement/ Guarantee Given on Behalf of Each Party	Maximum Amount Endorsed/ Guaranteed During the Period (Note 2)	Outstanding Endorsement/ Guarantee at the End of the Period (Note 2)	Actual Amount Borrowed (Note 3)	Amount Endorsed/ Guaranteed by Collateral	Ratio of Accumulated Endorsement/ Guarantee to Net Equity in Latest Financial Statements (%)	Aggregate Endorsement/ Guarantee Limit	Endorsement/ Guarantee Given by Parent on Behalf of Subsidiaries	Endorsement/ Guarantee Given by Subsidiaries on Behalf of Parent	Endorsement/ Guarantee Given on Behalf of Companies in Mainland China
		Name	Relationship
0	The Company	NSI	Indirectly owned subsidiary	$ 4,712,134 (Note 1)	$ 132,728	$ 125,752	$ -	$ -	1	$ 4,712,134 (Note 1)	Y	-	-
		Topkey (VN) Corp	Directly owned subsidiary	4,712,134 (Note 1)	1,493,190	1,414,710	105,637	-	15	4,712,134 (Note 1)	Y	-	-
		Xin Hong Zhou	Indirectly owned subsidiary	2,827,280 (Note 1)	1,571,900	1,571,900	-	-	17	4,712,134 (Note 1)	Y	-	Y

Note 1: 30% of the net equity of the company in their latest financial statement. If the company hold 100% voting rights directly or indirectly, no more than 50% of the net equity of the company in their latest financial statement. Note 2: Highest balance for the year and ending balance are the quota approved by board of directors as reporting amount and exchange by foreign amount in reporting month multiply by New Taiwan dollar exchange rate in reporting month. Note 3: Actual amount borrowed is actual foreign amount borrowed multiply New Taiwan dollar exchange rate in reporting month.

TABLE 2

TOPKEY CORPORATION AND SUBSIDIARIES

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

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Buyer	Related Party	Relationship	Transaction Details				Abnormal Transaction		Notes/Accounts Receivable (Payable)
			Purchases/ Sales	Amount	% of Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total
The Company	NSI	Indirectly owned subsidiary	Sales	$ (102,000)	1	T/T 90 days	$ -	-	$ 17,086	1
	Keentech	Indirectly owned subsidiary	Sales	(114,065)	2	T/T 90 days	-	-	59,614	5
			Purchases	4,486,680	80	T/T 90 days	-	-	(952,476)	(83)
	Yeu Chuan	Indirectly owned subsidiary	Purchases	375,138	7	T/T 90 days	-	-	(101,595)	(9)
NSI	Keentech	Investment accounted for using the equity method	Sales	(556,670)	68	T/T 60 days	-	-	147,588	88
			Purchases	213,080	28	T/T 60 days	-	-	(15,639)	(62)
XPT Investment	Xin Hong Zhou	XPT Investment's subsidiary	Purchases	539,194	100	T/T 75-90 days	-	-	(82,082)	(100)
Keentech	Topkey (VN) Corp	Subsidiary of the ultimate parent company	Sales	(134,114)	3	T/T 90 days	-	-	40,264	4
Xin Hong Zhou	XPT Taiwan	Subsidiary of the ultimate parent company	Sales	(221,232)	19	T/T 90 days	-	-	122,807	44

Note: Transactions have been eliminated.

TABLE 3

TOPKEY CORPORATION AND SUBSIDIARIES

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

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Company Name	Related Party	Relationship	Ending Balance	Turnover Rate	Overdue		Amount Received in Subsequent Period	Allowance for Impairment Loss
					Amount	Actions Taken
Keentech	The Company	The ultimate parent of Keentech	$ 952,476	2.02	$ -	-	$ 259,409	$ -
	Topkey (VN) Corp	Subsidiary of the ultimate parent company	283,007	0.38	-	-	-	-
Yeu Chuan	The Company	The ultimate parent of Yeu Chuan	101,595	1.61	-	-	22,313	-
Xin Hong Zhou	XPT Taiwan	Subsidiary of the ultimate parent company	122,807	1.88	-	-	-	-
NSI	Keentech	Investment accounted for using the equity method	147,588	2.25	-	-	64,643	-

Note: Transactions have been eliminated.

TABLE 4

TOPKEY CORPORATION AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS

FOR THE YEAR ENDED DECEMBER 31, 2025

(Amounts in Thousands of New Taiwan Dollars)

No.	Investee Company	Counterparty	Relationship (Note 1)	Transaction Details
				Financial Statement Accounts	Amount (Note 2)	Payment Terms	% of Total Sales or Assets
0	The Company	NSI	1	Sales	$ 102,000	T/T 90 days	1
		Keentech	1	Sales	114,065	T/T 90 days	1
			1	Purchases	4,486,680	T/T 90 days	49
			1	Trade payables	952,476	T/T 90 days	7
		Yeu Chuan	1	Purchases	375,138	T/T 90 days	4
			1	Trade payables	101,595	T/T 90 days	1
1	NSI	Keentech	2	Sales	556,670	T/T 60 days	6
			2	Purchases	213,080	T/T 60 days	2
			2	Trade receivables	147,588	T/T 60 days	1
2	XPT Investment	Xin Hong Zhou	2	Purchases	539,194	T/T 75-90 days	6
3	Keentech	Topkey (VN) Corp	2	Sales	134,114	T/T 90 days	1
4	Xin Hong Zhou	XPT Taiwan	2	Sales	221,232	T/T 90 days	2
			2	Trade receivables	122,807	T/T 90 days	1

Note 1: 1) From parent company to subsidiary. 2) From subsidiary to subsidiary.

Note 2: Transactions have been eliminated.

TABLE 5

TOPKEY CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTEES

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount		As of December 31, 2025			Net Income (Loss) of the Investee	Share of Profit (Loss)	Note
				December 31, 2025	December 31, 2024	Number of Shares	%	Carrying Amount
The Company	NSH	British Virgin Islands	International investment	$ 2,559,525	$ 2,668,865	80,137	100	$ 4,250,507	$ 576,630	$ 573,445	Subsidiary
	Topkey (VN) Corp	Vietnam	Manufacture and sale of carbon fiber products, glass fiber products and composite components	1,100,330	491,715	-	100	790,406	(75,668)	(75,668)	Subsidiary
	XPT Taiwan	Taiwan	International trade	21,096	21,096	2,110	70	37,600	23,567	16,572	Subsidiary
NSH	EIC	Seychelles	International investment	181,869	189,638	3,822	76	303,114	45,107	(Note 1)	Indirectly owned subsidiary
	NSI	Hong Kong	International investment and trade	394,170	411,008	12,498	100	1,523,804	80,675	(Note 1)	Indirectly owned subsidiary
	Musonic	British Virgin Islands	International investment	1,186,250	1,236,925	22,228	100	1,639,344	210,466	(Note 1)	Indirectly owned subsidiary
	XPT Investment	Hong Kong	International investment and trade	388,180	404,763	11,388	70	780,951	342,931	(Note 1)	Indirectly owned subsidiary

Note 1: Exempted according to regulations. Note 2: Transactions have been eliminated. Note 3: Refer to Table 6 for information on subsidiary investment in mainland China. Note 4: Foreign amount in the Table is exchanged to New Taiwan dollar by rate on balance sheet date.

TABLE 6

TOPKEY CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTMENTS IN MAINLAND CHINA

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Investee Company (Note 5)	Main Businesses and Products	Paid-in Capital	Method of Investment	Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2025	Remittance of Funds		Accumulated Outward Remittance for Investment from Taiwan as of December 31, 2025	Net Income (Loss) of the Investee	% Ownership of Direct or Indirect Investment	Investment Gain (Loss) (Note 2)	Carrying Amount as of December 31, 2025 (Note 2)	Accumulated Repatriation of Investment Income as of December 31, 2025
					Outward	Inward
Keentech	Manufacture and sale of carbon fiber products, glass fiber products and composite components	$ 1,446,148	(Note 1)	$ 1,091,967	$ -	$ -	$ 1,091,967	$ 392,723	100	$ 392,723	$ 2,547,432	$ 5,589,398
Yeu Chuan	Manufacture of various helmets, glasses, and components of vehicles	157,190	(Note 1)	86,455	-	-	86,455	53,592	76	40,966	299,367	703,546
Xin Hong Zhou	Development, design and manufacture of various precision molds, processing of various plastic and rubber products	483,359	(Note 1)	264,865	-	-	264,865	354,562	70	249,328	676,545	495,453
Valver	Manufacture of water gage and HRNT	39,298	(Note 1)	47,566	-	-	47,566	132	100	132	47,809	54,739
Accumulated Outward Remittance for Investments in Mainland China as of December 31, 2025	Investment Amount Authorized by the Investment Commission, MOEA	Upper Limit on the Amount of Investments Stipulated by the Investment Commission, MOEA
---	---	---
$ 1,490,853 (USD 47,422)	$ 2,089,558 (USD 66,466)	(Note 3)

Note 1: The investment was made through a company established in a third country, which in turn invested in company located in mainland China. Note 2: The investment gain (loss) are recognized according to the financial statements audited by the Company's independent auditors. Note 3: The Company had obtained the certification documents issued by the Industrial Bureau of the Ministry of Economic Affairs to meet the operating scope of operational headquarters with "Regulation Governing the Examination of Investment or Technical Cooperation in Mainland China" noticed by the Ministry of Economic Affairs on August 29, 2008. Note 4: Foreign amount in the Table is exchanged to New Taiwan dollar by rate on balance sheet date. Note 5: Transactions have been eliminated.

AI assistant

TOPKEY — Annual Report 2025

52400_rns_2026-04-14_e4c9ecae-866a-4fd5-bcb5-1a2d22531b10.pdf

Topkey Corporation and Subsidiaries

DECLARATION OF CONSOLIDATION OF FINANCIAL STATEMENTS OF AFFILIATES

INDEPENDENT AUDITORS' REPORT

Opinion

Basis for Opinion

Key Audit Matters

Revenue Recognition

Other Matter

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

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

Notice to Readers

TOPKEY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

TOPKEY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

TOPKEY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

TOPKEY CORPORATION AND SUBSIDIARIES

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

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

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

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

6. CASH AND CASH EQUIVALENTS

7. FINANCIAL ASSETS AT AMORTIZED COST - CURRENT

8. TRADE RECEIVABLES

9. INVENTORIES

10. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME NON-CURRENT

11. SUBSIDIARIES

12. PROPERTY, PLANT AND EQUIPMENT

13. LEASE ARRANGEMENTS

14. BORROWINGS

15. OTHER PAYABLES

16. RETIREMENT BENEFIT PLANS

17. EQUITY

18. REVENUE

19. NET PROFIT FROM CONTINUING OPERATIONS

20. INCOME TAXES

21. EARNINGS PER SHARE

22. CAPITAL MANAGEMENT

23. FINANCIAL INSTRUMENTS

24. TRANSACTIONS WITH RELATED PARTIES

Compensation of key management personnel

25. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

26. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

27. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

28. SEPARATELY DISCLOSED ITEMS

29. SEGMENT INFORMATION

TOPKEY CORPORATION AND SUBSIDIARIES

TOPKEY CORPORATION AND SUBSIDIARIES

TOPKEY CORPORATION AND SUBSIDIARIES

TOPKEY CORPORATION AND SUBSIDIARIES

TOPKEY CORPORATION AND SUBSIDIARIES

TOPKEY CORPORATION AND SUBSIDIARIES

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TOPKEY Annual Report 2025