T.S.M.C. — Annual Report 2024

Nov 6, 2024

1

Stock Code:1310

TAIWAN STYRENE MONOMER CORPORATION

Parent Company Only Financial Statements

With Independent Auditors’ Report for the Years Ended December 31, 2024 and 2023

Address: 8F.-1, No.6, Sec.1, Roosevelt Rd., Taipei City Telephone: (02)2396-6007

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

2

Table of contents

Contents 1. Cover Page 2. Table of Contents 3. Independent Auditors’ Report 4. Balance Sheets 5. Statements of Comprehensive Income 6. Statements of Changes in Equity 7. Statements of Cash Flows 8. Notes to the Parent Company Only Financial Statements (1) Company history (2) Approval date and procedures of the financial statements (3) New standards, amendments and interpretations adopted (4) Summary of material accounting policies (5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty (6) Explanation of significant accounts (7) Related-party transactions (8) Assets pledged as security (9) Commitments and contingencies (10) Losses due to major disasters (11) Subsequent events (12) Other (13) Other disclosures (a) Information on significant transactions (b) Information on investees (c) Information on investment in mainland China (d) Major shareholders (14) Segment information 9. List of major account titles

Page

1 2 3 4 5 6 7 8 8 8～10 10～24 24～25 25～51 51～52 53 53 53 53 53～55 56～58 58 58～59 59 59 60～68

3

==> picture [77 x 31] intentionally omitted <==

==> picture [169 x 19] intentionally omitted <==

KPMG

台北市110615信義路5段7號68樓(台北101大樓) 電 話 Tel + 886 2 8101 6666 68F., TAIPEI 101 TOWER, No. 7, Sec. 5, 傳 真 Fax + 886 2 8101 6667 Xinyi Road, Taipei City 110615, Taiwan (R.O.C.) 網 址 Web kpmg.com/tw

Independent Auditors’ Report

To the Board of Directors of Taiwan Styrene Monomer Corporation:

Opinion

We have audited the financial statements of Taiwan Styrene Monomer Corporation(“the Company”), which comprise the balance sheets as of December 31, 2024 and 2023, the statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the financial statements, including a summary of material accounting policies.

In our opinion, based on our audits and the reports of other auditors (please refer to Other Matter paragraph), the accompanying parent company only financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

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

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the parent company only financial statements of the current period. These matters were addressed in the context of our audit of the parent company only financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.

1. Revenue recognition

Regarding accounting policies on revenue recognition, please refer to note 4(n) “Revenue recognition” to the parent company only financial statements. For explanations on revenue recognition, please refer to note 6(s) "Revenue from contracts with customers" to the parent company only financial statements.

Description of the key audit matter:

The Company's sales revenue is recognized when a performance obligation is satisfied, which depends on the various trade terms agreed with customers. Therefore, the accuracy of revenue recognition is considered to be one of most significance in the audit.

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

3-1

How the matter was addressed in our audit:

Our principal audit procedures included assessing whether the accounting policies regarding to revenue recognition were inconformity with relevant accounting standards; obtaining understanding and testing the effectiveness of design and implementation of internal controls over revenue recognition; selecting samples and examining vouchers; selecting samples for a period of time before and after the balance sheet date and examining the transaction terms and relevant vouchers to assess whether sales revenue was recognized in an appropriate period; in addition, we also performed analytical procedures on primary customers and products to evaluate if there is any material abnormality.

1. Impairment of non-financial assets (Property, plant and equipment, Intangible assets, and Right-of-use assets)

Regarding accounting policies on impairment of non-financial assets, please refer to note 4(n) “Impairment of non-financial assets” to the parent company only financial statements. For explanations on property, plant and equipment, intangible assets, and right-of-use assets, please refer to notes 6(h), 6(j), and 6(i) to the parent company only financial statements, respectively.

Description of the key audit matter:

The prosperity of the industry where the Company is located is affected by market environment factors and the economy, resulting in unfavorable changes to the Company. Therefore, the assessment of non-financial asset impairment is important. Since the evaluation process of impairment depends on the subjective judgment and estimates of the management, it is with a high degree of uncertainty. Therefore, the impairment assessment of non-financial assets is one of the key matters in the audit.

How the matter was addressed in our audit:

Our principal audit procedures for the aforementioned key audit matters included understanding the processes of management's assessment of impairment; evaluating the professional competence, suitability, and objectivity of management's experts; for the recoverable amount determined by management based on the evaluation report issued by a third party, we assessed the impairment model, verified the company's budget and financial forecasts, evaluated the appropriateness of key assumptions used in estimating future cash flows, verified the sources of parameters used in calculating the discount rate, and performed retrospective testing to assess whether there were significant differences between the company's past estimates of future cash flows and actual results. Additionally, we also reviewed whether the book value of the company's non-financial assets was consistent with the results of the evaluation report.

Other Matter

We did not audit the financial statements of some equity-accounted investees of the Company (including those statements which were prepared using a difference financial reporting framework). Those statements were audited by other auditors, whose reports have been furnished to us. We have performed audit procedures on the conversion adjustments to the financial statements of those investees, which conform to those financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers. Our opinion, insofar as it relates to the amounts included for those investees and the amounts prior to the conversion adjustments, is based solely on the reports of other auditors. Investments accounted for using equity method on those investees constituting 22.46% and 19.39% of total assets at December 31, 2024 and 2023, and the related share of profit of subsidiaries, associates and joint ventures accounted for using equity method constituting 9.84% and 2.44% of total loss before tax for the years then ended.

3-2

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

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

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

Auditor’s Responsibilities for the Audit of the Parent Company Only Financial Statements

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

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

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

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

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

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

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

3-3

1. Obtain sufficient appropriate audit evidence regarding the financial information of the investment in other entities accounted for using the equity method to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.

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

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

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

The engagement partners on the audit resulting in this independent auditors’ report are Wu, Lin and Wang, Yung-Sheng.

KPMG

Taipei, Taiwan (Republic of China) March 12, 2025

Notes to Readers

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

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

4

(English Translation of Financial Statements Originally Issued in Chinese)

TAIWAN STYRENE MONOMER CORPORATION

Balance Sheets

December 31, 2024 and 2023

(Expressed in Thousands of New Taiwan Dollars)

Assets Current assets: 1100 Cash and cash equivalents (note 6(a)) 1110 Current financial assets at fair value through profit or loss (note 6(b)) 1170 Accounts receivable, net (note 6(c)) 1200 Other receivables (note 7) 1220 Current tax assets 130X Inventories (note 6(d)) 1410 Prepayments (note 6(e)) 1476 Other current financial assets Total current assets Non-current assets: 1517 Non-current financial assets at fair value through other comprehensive income (note 6(f)) 1550 Investments accounted for using equity method (note 6(g)) 1600 Property, plant and equipment (note 6(h)) 1755 Right-of-use assets (note 6(i)) 1780 Intangible assets (note 6(j)) 1840 Deferred tax assets (note 6(p)) 1920 Refundable deposits 1915 Prepayments for equipment 1995 Other non-current assets, others (note 6(k)) Total non-current assets Total assets	December 31, 2024 Amount % $ 91,828 1 95,388 1 977,485 10 1,556 - 1,148 - 455,229 5 187,700 2 20,000 - 1,830,334 19 1,234,431 13 3,984,926 41 2,099,364 22 11,102 - 3,731 - 448,317 5 3,729 - 25,690 - 19,735 - 7,831,025 81 $ 9,661,359 100	December 31, 2023
		Amount % 165,508 2 138,940 2 796,319 9 2,430 - 6,333 - 730,526 8 183,490 2 - - 2,023,546 23 960,051 10 3,503,366 38 2,342,152 25 16,352 - 5,396 - 348,573 4 3,729 - 13,944 - 39,563 - 7,233,126 77 9,256,672 100

Liabilities and Equity Current liabilities: 2100 Short-term borrowings (notes 6(l) and 8) 2130 Contract liabilities (note 6(s)) 2170 Accounts payable 2200 Other payables (note 6(m)) 2280 Current lease liabilities (note 6(n)) 2399 Other current liabilities Total current liabilities Non-Current liabilities: 2570 Deferred tax liabilities (note 6(p)) 2580 Non-current lease liabilities (note 6(n)) 2640 Net defined benefit liabilities, non-current (note 6(o)) Total non-current liabilities Total liabilities Equity (note 6(q)): 3100 Capital stock 3200 Capital surplus Retained earnings: 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings 3400 Other equity Total equity Total liabilities and equity	December 31, 2024		December 31, 2023
	Amount % $ 1,185,000 12 - - 764,460 8 96,000 1 3,818 - 2,156 - 2,051,434 21 173,548 2 6,919 - 37,657 - 218,124 2 2,269,558 23 5,278,698 55 129,663 1 639,287 7 8,811 - 44,872 - 692,970 7 1,290,470 14 7,391,801 77 $ 9,661,359 100		Amount % 1,000,000 11 1,957 - 999,944 11 91,121 1 5,083 - 2,240 - 2,100,345 23 173,509 2 10,647 - 44,686 - 228,842 2 2,329,187 25 5,278,698 57 75,728 1 639,287 7 223,663 2 (45,013) - 817,937 9 755,122 8 6,927,485 75 9,256,672 100

See accompanying notes to financial statements.

5

(English Translation of Financial Statements Originally Issued in Chinese)

TAIWAN STYRENE MONOMER CORPORATION

Statements of Comprehensive Income

For the years ended December 31, 2024 and 2023

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

4000 Operating revenue (note 6(s)) 5000 Operating costs (notes 6(d), (h), (i), (j), (n), (o), (u) and 7) Gross loss from operations Operating expenses (notes 6(c), (h), (i), (j), (n), (o), (u) and 7): 6100 Selling expenses 6200 Administrative expenses 6450 Expected credit impairment loss (gain) Operating losses Non-operating income and expenses (notes 6 (f), (g), (n), (t) and 7): 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Finance costs 7070 Share of (loss) profit of subsidiaries, associates and joint ventures accounted for using equity method 9900 Loss before tax 7950 Income tax benefits (note 6(p)) Net loss 8300 Other comprehensive income (loss) : 8310 Components of other comprehensive income (loss) that will not be reclassified to profit or loss 8311 Remeasurements of defined benefit plans 8316 Unrealized gains from investments in equity instruments measured at fair value through other comprehensive income 8330 Share of other comprehensive income of subsidiaries, associates and joint ventures accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss 8349 Less: Income tax related to components of other comprehensive income that will not be reclassified to profit or loss Components of other comprehensive income that will not be reclassified to profit or loss 8360 Components of other comprehensive income (loss) that will be reclassified to profit or loss 8361 Exchange differences on translation 8380 Share of other comprehensive income (loss) of subsidiaries, associates and joint ventures accounted for using equity method, components of other comprehensive income that will be reclassified to profit or loss 8399 Less: Income tax related to components of other comprehensive income that will be reclassified to profit or loss Components of other comprehensive income (loss) that will be reclassified to profit or loss 8300 Other comprehensive income 8500 Comprehensive income Loss per share (note 6(r)) Basic loss per share Diluted loss per share	2024 Amount % $ 11,243,294 100 11,653,246 104 (409,952) (4) 66,229 1 88,679 1 9 - 154,917 2 (564,869) (6) 6,939 - 17,962 - 111,101 1 (19,061) - (32,821) - 84,120 1 (480,749) (5) 99,903 1 (380,846) (4) 958 - 277,855 2 472,937 4 192 - 751,558 6 876 - 38,848 - - - 39,724 - 791,282 6 $ 410,436 2 $ (0.72) $ (0.72)	2023 Amount % 9,319,242 100 9,823,925 105 (504,683) (5) 57,429 1 86,017 1 (8) - 143,438 2 (648,121) (7) 5,099 - 17,471 - 31,454 1 (14,486) - 12,680 - 52,218 1 (595,903) (6) 133,719 1 (462,184) (5) 6,370 - 316,768 3 697,527 7 1,274 - 1,019,391 10 - - (824) - - - (824) - 1,018,567 10 556,383 5 (0.88) (0.88)

See accompanying notes to financial statements.

6

(English Translation of Parent Company Only Financial Statements Originally Issued in Chinese)

TAIWAN STYRENE MONOMER CORPORATION

Statements of Changes in Equity

For the years ended December 31, 2024 and 2023

(Expressed in Thousands of New Taiwan Dollars)

Common stock Balance at January 1, 2023 $ 5,278,698 Appropriation and distribution of retained earnings: Special reserve appropriated - Cash dividends of ordinary share - Overdue dividends not received by shareholders - Disposal of investments in equity instruments designated at fair value through other comprehensive income - Associates disposal of investments in equity instruments designated at fair value through other comprehensive income - Changes in ownership interests for using equity method - Changes in ownership interests in subsidiaries - Net loss - Other comprehensive income - Total comprehensive income - Balance at December 31, 2023 5,278,698 Appropriation and distribution of retained earnings: Reversal of special reserve - Changes in equity of associates and joint ventures accounted for using equity method - Disposal of investments in equity instruments designated at fair value through other comprehensive income - Changes in ownership interests in subsidiaries - Net loss - Other comprehensive income - Total comprehensive income - Balance at December 31, 2024 $ 5,278,698	Capital surplus 70,947 - - 4,702 - - 86 (7) - - - 75,728 - 1,070 - 52,865 - - - 129,663		Retained	earnings	Total 1,337,081 - (105,553) - (1,771) 45,216 - - (462,184) 5,148 (457,036) 817,937 - (55) 254,447 - (380,846) 1,487 (379,359) 692,970	Other equity interest Exchange differences on translation of Unrealized gains (losses) on financial assets measured at fair value through foreign financial statements other comprehensive income Total (7,392) (207,460) (214,852) - - - - - - - - - - 1,771 1,771 - (45,216) (45,216) - - - - - - - - - (824) 1,014,243 1,013,419 (824) 1,014,243 1,013,419 (8,216) 763,338 755,122 - - - - - - - (254,447) (254,447) - - - - - - 39,724 750,071 789,795 39,724 750,071 789,795 31,508 1,258,962 1,290,470	Total equity 6,471,874 - (105,553) 4,702 - - 86 (7) (462,184) 1,018,567 556,383 6,927,485 - 1,015 - 52,865 (380,846) 791,282 410,436 7,391,801
		Legal reserve 639,287 - - - - - - - - - - 639,287 - - - - - - - 639,287	Special reserve 8,811 214,852 - - - - - - - - - 223,663 (214,852) - - - - - - 8,811	Unappropriated retained earnings 688,983 (214,852) (105,553) - (1,771) 45,216 - - (462,184) 5,148 (457,036) (45,013) 214,852 (55) 254,447 - (380,846) 1,487 (379,359) 44,872

See accompanying notes to financial statements.

7

(English Translation of Financial Statements Originally Issued in Chinese)

TAIWAN STYRENE MONOMER CORPORATION

Statements of Cash Flows

For the years ended December 31, 2024 and 2023

(Expressed in Thousands of New Taiwan Dollars)

Cash flows from operating activities: Loss before tax Adjustments: Adjustments to reconcile profit loss Depreciation expense Amortization expense Expected credit impairment loss (gain) Interest expense Interest income Dividend income Share of loss (gain) of subsidiaries, associates and joint ventures accounted for using equity method Reversal of impairment loss on financial assets (Reversal of) impairment loss on non-financial assets Gain on lease modification Loss from decline (gain from recovery) in value of inventories Total adjustments to reconcile loss Changes in operating assets and liabilities: Changes in operating assets: Financial assets mandatorily measured at fair value through profit or loss Accounts receivable Other receivables Inventories Prepayments Total changes in operating assets Changes in operating liabilities: Contract liabilities Accounts payable Other payables Other current liabilities Net defined benefit liabilities Total changes in operating liabilities Total changes in operating assets and liabilities Cash outflow generated from operations Interest received Dividends received Interest paid Income taxes refunded (paid) Net cash flows used in operating activities Cash flows from investing activities: Proceeds from disposal of financial assets at fair value through other comprehensive income Proceeds from capital reduction of financial assets at fair value through other comprehensive income Proceeds from disposal of non-current assets classified as held for sale Acquisition of property, plant and equipment Increase in refundable deposits Decrease in refundable deposits Acquisition of intangible assets Increase in other financial assets Decrease (increase) in other non-current assets Increase in prepayments for equipment Dividends received Net cash flows from (used in) investing activities Cash flows from financing activities: Increase in short-term borrowings Decrease in short-term borrowings Payment of lease liabilities Cash dividends paid Net cash flows from financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period	2024 $ (480,749) 248,566 1,665 9 19,061 (6,939) (15,140) 32,821 - (650) (27) (45,456) 233,910 43,552 (181,175) 747 320,753 (2,610) 181,267 (1,957) (235,484) 10,175 (84) (6,071) (233,421) (52,154) (298,993) 7,066 15,140 (19,331) 5,191 (290,927) - 3,475 - (21,128) (15) 15 - (20,000) 22,828 - 52,160 37,335 7,065,000 (6,880,000) (5,088) - 179,912 (73,680) 165,508 $ 91,828	2023 (595,903) 252,446 1,519 (8) 14,486 (5,099) (11,514) (12,680) (14,856) 248 (28) 48,051 272,565 (18,402) 167,334 33 (211,374) 3,432 (58,977) (5,872) 110,902 7,266 62 950 113,308 54,331 (269,007) 4,946 11,435 (14,203) (461) (267,290) 288 - 1,288 (82,739) (91) 7 (790) - (15,604) (950) 24,860 (73,731) 4,802,000 (4,502,000) (5,496) (105,553) 188,951 (152,070) 317,578 165,508

See accompanying notes to financial statements.

8

(English Translation of Financial Statements Originally Issued in Chinese)

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements For the years ended December 31, 2024 and 2023

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

(1) Company history

Taiwan Styrene Monomer Corp. (the “Company”) was incorporated on November 16, 1979, under the approval of Ministry of Economic Affairs, Republic of China (ROC). Registered address is 8F.-1, No.6, Sec.1, Roosevelt Rd., Taipei City. The Company manufactures and sells styrene monomer.

(2) Approval date and procedures of the financial statements

These parent-company-only financial statements were authorized for issue by the Board of Directors on March 12, 2025.

(3) New standards, amendments and interpretations adopted:

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

The Company has initially adopted the following new amendments, which do not have a significant impact on its financial statements, from January 1, 2024:

• ●Amendments to IAS 1 “Classification of Liabilities as Current or Non-current”

• ●Amendments to IAS 1 “Non-current Liabilities with Covenants”

• ●Amendments to IAS 7 and IFRS 7 “Supplier Finance Arrangements”

• ●Amendments to IFRS 16 “Lease Liability in a Sale and Leaseback”

• (b) The impact of IFRS issued by the FSC but not yet effective

The Company assesses that the adoption of the following new amendments, effective for annual period beginning on January 1, 2025, would not have a significant impact on its financial statements:

• ●Amendments to IAS21 “Lack of Exchangeability”

(Continued)

9

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

(c) The impact of IFRS issued by IASB but not yet endorsed by the FSC

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

Standards or Interpretations IFRS 18 “Presentation and Disclosure in Financial Statements”

Content of amendment Effective date per IASB The new standard introduces three categories of income and expenses, two income statement subtotals and one single note on management performance measures. The three amendments, combined with enhanced guidance on how to disaggregate information, set the stage for better and more consistent information for users, and will affect all the entities. ●A more structured income statement: under current standards, companies use different formats to present their results, making it difficult for investors to compare financial performance across companies. The new standard promotes a more structured income statement, introducing a newly defined ‘operating profit’ subtotal and a requirement for all income and expenses to be allocated between three new distinct categories based on a company’ s main business activities. January 1, 2027

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

• ●Greater disaggregation of information: the new standard includes enhanced guidance on how companies group information in the financial statements. This includes guidance on whether information is included in the primary financial statements or is further disaggregated in the notes.

(Continued)

10

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

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

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

• ●Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”

• ●IFRS 17 “ Insurance Contracts” and amendments to IFRS 17 “ Insurance Contracts”

• ●IFRS 19 “Subsidiaries without Public Accountability: Disclosures”

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

• ●Annual Improvements to IFRS Accounting Standards—Volume 11

• ●Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”

(4) Summary of material accounting policies

The significant accounting policies presented in the financial statements are summarized as follows. Except for those specifically indicated, the following accounting policies were applied consistently throughout the presented periods in the parent company only financial statements.

(a) Statement of compliance

These parent company only financial statements of the Company have been prepared in accordance with the Regulations Governing the preparation of Financial Reports by Securities Issuers (the "Regulations").

(b) Basis of preparation

• (i) Basis of measurement

Except for the following significant accounts, the parent company only financial statements have been prepared on a historical cost basis:

• 1) Financial instruments measured at fair value through profit or loss are measured at fair value;

• 2) Financial assets at fair value through other comprehensive income are measured at fair value;

• 3) The defined benefit liabilities are measured at the present value of the defined benefit obligation less fair value of the plan assets.

(Continued)

11

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

(ii) Functional and presentation currency

The functional currency of the Company is determined based on the primary economic environment in which it operates. The parent company only financial statements are presented in New Taiwan Dollar, which is the Company’s functional currency. All financial information presented in New Taiwan Dollar has been rounded to the nearest thousand.

• (c) Foreign currencies

(i) Foreign currency transactions

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

Exchange differences are generally recognized in profit or loss, except for an investment in equity securities designated as at fair value through other comprehensive income, which are recognized in other comprehensive income.

(ii) Foreign operations

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

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

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

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

• (i) It is expected to be realized, or intended to be sold or consumed, in the normal operating cycle;

• (ii) It is held primarily for the purpose of trading;

• (iii) It is expected to be realized within twelve months after the reporting period; or

(Continued)

12

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

• (iv) The asset is cash or a cash equivalent (as defined in IAS 7) unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

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

• (i) It is expected to be settled in the normal operating cycle;

• (ii) It is held primarily for the purpose of trading;

• (iii) It is due to be settled within twelve months after the reporting period; or

• (iv) The Company does not have the right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period.

• (e) Cash and cash equivalents

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

(f) Financial instruments

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

(i) Financial assets

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

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

(Continued)

13

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

• 1) Financial assets measured at amortized cost

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

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

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

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

• 2) Fair value through other comprehensive income (FVOCI)

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

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

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

• 3) Fair value through profit or loss (FVTPL)

All financial assets not classified as amortized cost or FVOCI described as above are measured at FVTPL. On initial recognition, the Company may irrevocably designate a financial asset, which meets the requirements to be measured at amortized cost or at FVOCI, as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

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

• 4) Impairment of financial assets

The Company recognizes loss allowances for expected credit losses (ECL) on financial assets measured at amortized cost (including cash and cash equivalents, trade receivables, other receivables and refundable deposits).

(Continued)

14

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

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

‧ debt securities that are determined to have low credit risk at the reporting date; and

‧ other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition.

Loss allowance for trade receivables is always measured at an amount equal to lifetime ECL.

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

The Company assumes that the credit risk on a financial asset has increased significantly if it is more than 30 days past due.

The Company considers a financial asset to be in default when the financial asset is more than 90 days past due or the debtor is unlikely to pay its credit obligations to the Company in full.

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

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

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

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

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

• ‧ significant financial difficulty of the borrower or issuer;

• ‧ a breach of contract such as a default;

(Continued)

15

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

• ‧ the lender of the borrower, for economic or contractual reasons relating to the borrower's financial difficulty, having granted to the borrower a concession that the lender would not otherwise consider;

• ‧ it is probable that the borrower will enter bankruptcy or other financial reorganization; or

• ‧ the disappearance of an active market for a security because of financial difficulties.

Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets.

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

5)

Derecognition of financial assets

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

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

• (ii) Financial liabilities and equity instruments

• 1) Classification of debt or equity

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

2) Equity instrument

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

(Continued)

16

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

3) Treasury shares

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

• 4) Financial liabilities

Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading or it is designated as such on initial recognition.

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

• 5) Derecognition of financial liabilities

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

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

• 6) Offsetting of financial assets and liabilities

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

• (g) Inventories

Inventories are measured at the lower of cost and net realizable value. The cost of inventories is calculated using weighted-average method, and includes expenditure incurred in acquiring the inventories, production or conversion costs, and other costs incurred in bringing them to their present location and condition. In the case of manufactured inventories and work in process, cost includes an appropriate share of production overheads based on normal operating capacity.

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

(Continued)

17

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

(h) Investments in associates

Associates are those entities in which the Company has significant influence, but not control or joint control, over their financial and operating policies. Investments in associates are accounted for using the equity method and are recognized initially at cost. The cost of the investment includes transaction costs. The carrying amount of the investment in associates includes goodwill arising from the acquisition less any accumulated impairment losses.

The parent company only financial statements include the Company’s share of the profit or loss and other comprehensive income of those associates, after adjustments to align their accounting policies with those of the Company, from the date on which significant influence commences until the date on which significant influence ceases. The Company recognizes any changes of its proportionate share in the investee within capital surplus, when an associate’s equity changes due to reasons other than profit and loss or comprehensive income, which did not result in changes in actual significant influence.

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

The Company discontinues the use of the equity method and measures the retained interest at fair value from the date when its investment ceases to be an associate. The difference between the fair value of retained interest and proceeds from disposing, and the carrying amount of the investment at the date the equity method was discontinued is recognized in profit or loss. The Company accounts for all the amounts previously recognized in other comprehensive income in relation to that investment on the same basis as would have been required if the associates had directly disposed of the related assets or liabilities. If a gain or loss previously recognized in other comprehensive income would be reclassified to profit or loss (or retained earnings) on the disposal of the related assets or liabilities, the Company reclassifies the gain or loss from equity to profit or loss (or retained earnings) when the equity method is discontinued. If the Company’ s ownership interest in an associate is reduced while it continues to apply the equity method, the Company reclassifies the proportion of the gain or loss that had previously been recognized in other comprehensive income relating to that reduction in ownership interest to profit or loss.

When the Company subscribes to additional shares in an associate at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment will differ from the amount of the Company’s proportionate interest in the net assets of the associate. The Company records such a difference as an adjustment to investments, with the corresponding amount charged or credited to capital surplus. The aforesaid adjustment should first be adjusted under capital surplus. If the capital surplus resulting from changes in ownership interest is not sufficient, the remaining difference is debited to retained earnings. If the Company’s ownership interest is reduced due to the additional subscription to the shares of the associate by other investors, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate will be reclassified to profit or loss on the same basis as would be required if the associate had directly disposed of the related assets or liabilities.

(Continued)

18

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

(i) Investment in subsidiaries

In preparing the parent company only financial statements of the Company, investees controlled by the Company are accounted for using equity method. Under equity method, profit or loss and other comprehensive income recognized in the parent company only financial statement are the same as the profit or loss and other comprehensive income attributable to the owners in the consolidated financial statements. In addition, changes in equity recognized in parent company only financial statement is the same as changes in equity attributable to owners of parent in the consolidated financial statements.

Change in the Company’s ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions with owners.

• (j) Property, plant and equipment

• (i) Recognition and measurement

Items of property, plant and equipment are measured at cost, which includes capitalized borrowing costs, less accumulated depreciation and any accumulated impairment losses.

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

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

(ii) Subsequent cost

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

• (iii) Depreciation

Depreciation is calculated on the cost of an asset less its residual value and is recognized in profit or loss on a straight line basis over the estimated useful lives of each component of an item of property, plant and equipment.

Land is not depreciated.

The estimated useful lives of property, plant and equipment for current and comparative periods are as follows:

1)	Land improvements:	4~41 years
2)	Buildings and structures:	3~60 years
3)	Machinery and equipment:	1~21 years
4)	Transportation equipment:	5~6 years
5)	Other equipment:	2~20 years

(Continued)

19

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

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

(k) Leases

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

(i) As a leasee

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

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

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

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

• － fixed payments, including in-substance fixed payments;

• － variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;

• － amounts expected to be payable under a residual value guarantee; and

• － payments for purchase or termination options that are reasonably certain to be exercised.

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

• －

• there is a change in future lease payments arising from the change in an index or rate; or

• － there is a change in the Company’s estimate of the amount expected to be payable under a residual value guarantee; or

• － there is a change of its assessment on whether it will exercise a purchase option; or

(Continued)

20

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

• －

• －

• there is a change in the lease term resulting from a change of its assessment on whether it will exercise an extension or termination option; or

• there is any lease modifications

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

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

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

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

(ii) As a lessor

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

(l) Intangible assets

• (i) Recognition and measurement

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

(ii) Subsequent expenditure

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

(iii) Amortization

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

(Continued)

21

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

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

• 1) Technical royalty: 15 years

• 2) Computer software: 3~5 years

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

(m) Impairment of non-financial assets

At each reporting date, the Company reviews the carrying amounts of its non-financial assets (other than inventories and deferred tax assets) to determine whether there is any indication of impairment. If any such indication exists, then the asset’ s recoverable amount is estimated.

For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGUs.

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

An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its recoverable amount. Impairment losses are recognized in profit or loss. For non-financial assets, an impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.

(n) Revenue recognition

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

(1) Sale of goods

The Company manufactures and sells styrene monomer. The Company recognizes revenue when control of the products has transferred, being when the products are delivered to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, the acceptance provisions have lapsed, or the Company has objective evidence that all criteria for acceptance have been satisfied. A receivable is recognized when the goods are delivered as this is the point in time that the Company has a right to an amount of consideration that is unconditional.

(Continued)

22

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

(2) Financing components

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

(o) Employee benefits

(i) Defined contribution plans

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

(ii) Defined benefit plans

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

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

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

(iii) Short-term employee benefits

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

(p) Income taxes

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

(Continued)

23

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

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

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

• (i) temporary differences on the initial recognition of assets and liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profits (losses) at the time of the transaction;

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

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

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

Deferred taxes are measured at tax rates that are expected to be applied to temporary differences when they reserve, using tax rates enacted or substantively enacted at the reporting date.

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

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

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

  • a) the same taxable entity; or

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

• (q) Earnings per share

The Company discloses basic and diluted earnings per share attributable to ordinary shareholders of the Company. Basic earnings per share is calculated as the profit attributable to ordinary shareholders of the Company divided by the weighted average number of ordinary shares outstanding. Diluted earnings per share is calculated as the profit attributable to ordinary shareholders of the Company divided by the weighted average number of ordinary shares outstanding after adjustment for the effects of all potentially dilutive ordinary shares.

(Continued)

24

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

(r) Operating segments

The Company has disclosed information about operating segments in the consolidated financial statements. Therefore, no segmental information is disclosed in the parent company only financial statements.

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

In preparing these parent company only financial statements, management has made judgments and, estimates about the future, including climate-related risks and opportunities, that affect the application of the accounting policies and the reported amount of assets, liabilities, income, and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis and are consistent with the Group’s risk management and climate-related commitments where appropriate. Revisions to estimates are recognized prospectively in the period of the change and future periods.

Information about judgments made in applying accounting policies that have the most significant effects on the amounts recognized in the parent company only financial statements is judgment regarding control of subsidiaries. For related information, please refer to the consolidated financial statements for the year ended December 31, 2024.

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next financial year is as follows:

(a) Recognition of deferred tax assets

Deferred tax assets are recognized to the extent that it is probable that future taxable profits will be available against which those deferred tax assets can be utilized. Assessment of the realization of the deferred tax assets requires management’s subjective judgment and estimate, including the future revenue growth and profitability, tax holidays, the amount of tax credits that can be utilized and feasible tax planning strategies. Changes in the economic environment, industry trends, and relevant laws and regulations may result in adjustments to the deferred tax assets. Refer to note 6(p) for further description of the recognition of deferred tax assets.

• (b) Fair value measurements in level 3 equity instruments

If the fair value of financial assets recognized in balance sheets cannot be reached from the active market, the Company will measure the fair value of financial assets based on valuation technique, including market approach and asset-based approach. The measurement of fair value involves in assumptions, estimations and judgements, such as the selection of comparable company, comparable transaction or price of equity transaction, liquidity discount and valuation multiplier. The fluctuation of assumption used in measurements of fair value may influence the fair value of financial instruments recognized. Please refer to note 6(f) and (v) for relevant explanation.

(Continued)

25

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

The accounting policies and disclosure of the Company include the adoption of fair value measurement of its financial and non-financial assets and liabilities. The Company has established internal control policies for fair value measurement, including obtaining valuation report issued by external experts for the fair value measurement of significant level 3 equity instruments. The Company will evaluate the supporting evidence for expert's work, and determine if the valuation and the classification of fair value level comply with the rule set by IFRS.

The Company uses the market observable inputs as much as possible when measuring its assets and liabilities. The levels of fair value are classified with the inputs used in valuation technique as below:

• (i) Level 1: The quoted prices in active market of the same assets or liabilities (not adjusted)

• (ii) Level 2: Except for the quoted prices included in Level 1, the input parameter of assets or liabilities is directly (price) or indirectly (derive from price) observable.

• (iii) Level 3: The input parameter of assets or liabilities is not based on observable market information (unobservable parameter).

(6) Explanation of significant accounts

• (a) Cash and cash equivalents

Petty cash Deposits in bank Time deposits due within three months	December 31, 2024 $ 160 91,668 - $ 91,828	December 31, 2023
		160 78,606 86,742
		165,508

• (b) Current financial assets at fair value through profit or loss

Mandatorily measured at fair value through profit or loss: Listed stocks (c) Accounts receivable Accounts receivable Less: Loss allowance	December 31, 2024 $ 95,388 December 31, 2024 $ 977,534 (49) $ 977,485	December 31, 2023
		138,940
		December 31, 2023
		796,359 (40
		796,319

(Continued)

26

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

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

Current Current	December 31, 2024	December 31, 2024
	Gross carrying amount Weighted- average loss rate $ 977,534 0.005% December 31, 2023		Loss allowance provision
			49
		Weighted- average loss rate 0.005%	Loss allowance provision
			40

The movement in the allowance for notes and accounts receivable was as follows:

Beginning balance Impairment loss (reversal of impairment loss) recognized Ending balance (d) Inventories	2024 $ 40 9 $ 49	2023
		48 (8
		40

Finished goods By-product Semi-finished products Work in progress Raw materials Supplies	December 31, 2024 $ 108,319 6,361 68,347 68,684 108,574 94,944 $ 455,229	December 31, 2023
		247,676 8,155 94,656 60,861 297,228 21,950
		730,526

In 2024 and 2023, inventories recognized as cost of sales amounted to $11,698,702 thousand and $9,775,874 thousand, respectively.

Except for the transfer of inventory to operating costs from sales, other losses directly included in operating costs are as follows:

(Gain on recovery) loss from decline in value of inventories $	2024 2023 (45,456) 48,051

None of the inventories of the Company was pledged as collateral on December 31, 2024 and 2023.

(Continued)

27

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

(e) Prepayments

Office supplies Prepayment for purchases Overpaid sales tax Others	December 31, 2024 $ 105,809 - 72,737 9,154 $ 187,700	December 31, 2023
		103,699 8,108 68,201 3,482
		183,490

• (f) Non-current financial assets at fair value through other comprehensive income

Equity investments: Domestic non-listed stocks Foreign non-listed equity investments	December 31, 2024 $ 1,146,079 88,352 $ 1,234,431	December 31, 2023
		864,793 95,258
		960,051

• (i) The Company designated the investments shown above at fair value through other comprehensive income because these equity securities represent those investments that the Company intends to hold for long-term strategic purposes not for trading purposes. During 2024 and 2023, the dividends of $12,109 thousand and $5,202 thousand, respectively, related to equity investments at fair value through other comprehensive income held on the years then ended were recognized.

• (ii) In December, 2022, the Company determined to dispose its shares of Infomedia Inc., therefore, the book value of the investment which amounting to $1,288 thousand was reclassified from non-current investment in equity instrument at FVOCI to non-current assets (or disposal groups) held for sale. In January, 2023, the Company realized a gain of $588 thousand, which was reclassified from other comprehensive income to retained earnings.

• (iii) In March, 2023, the Company disposed its shares held in Euroc Venture Capital Corp. and Euroc III Venture Capital Corp. as a result of the completion of the liquidation. The shares disposed had a fair value of $288 thousand and the Company realized a loss of $2,359 thousand, which was recognized as other comprehensive income, and thereafter, was reclassified to retained earnings.

• (iv) For market risk; please refer to note 6(v).

• (v) None of the above-mentioned financial assets had been pledged as collateral as of December 31, 2024 and 2023.

(Continued)

28

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

(g) Investments accounted for using equity method

Investment accounted for using the equity method were follows:

Subsidiaries Associates	December 31, 2024 $ 1,797,385 2,187,541 $ 3,984,926	December 31, 2023
		1,690,953 1,812,413
		3,503,366

(i) Subsidiaries

Please refer to the consolidated financial report for the years ended December 31, 2024.

(ii) Associates

Associates of the Company consisted of the following:

Grand Cathay Venture Capital Co., Ltd. Wonderland Enterprise Co., Ltd. Functional Coating System Technologies Co., Ltd. Universal Investment Limited	December 31, 2024 Amount Share- holding (%) $ 588,585 25.00 1,551,212 37.04 30,244 34.88 17,500 40.00 $ 2,187,541	December 31, 2023
	Amount $ 588,585 1,551,212 30,244 17,500 $ 2,187,541	Amount Share- holding (%) 821,087 25.00 948,059 37.04 25,837 34.88 17,430 40.00 1,812,413

The following consolidated financial information of significant associates has been adjusted according to individually prepared IFRS financial statements of these associates:

• 1) Grand Cathay Venture Capital Co., Ltd.

Current assets Non-current assets Current liabilities Non-current liabilities Net assets Operating revenue Net (loss) income Other comprehensive income Total comprehensive income	December 31, 2024 $ 1,990,506 391,301 (27,467) - $ 2,354,340 2024 $ 205,083 $ (128,893) (649,277) $ (778,170)	December 31, 2023
		2,920,995 371,017 (7,662) -
		3,284,350
		2023
		255,550
		10,673 1,400,524
		1,411,197

(Continued)

29

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

Beginning shares of net assets of associates Comprehensive income attributable to the Company Dividends received from associates Reversal of impairment Ending shares of net assets of associates 2) Wonderland Enterprise Co., Ltd. Current assets Non-current assets Current liabilities Non-current liabilities Net assets Operating revenue Net loss Other comprehensive income Total comprehensive income Beginning shares of net assets of associates Comprehensive income attributable to the Company Changes in ownership of interests in investments accounted for using equity method Ending shares of net assets of associates	2024 $ 821,087 (194,542) (37,960) - $ 588,585 December 31, 2024 $ 51,029 4,195,016 (57,710) (60) $ 4,188,275 2024 $ 5,700 $ (52,591) 1,678,366 $ 1,625,775 2024 $ 948,059 602,138 1,015 $ 1,551,212	2023 478,292 352,799 (24,860) 14,856 821,087 December 31, 2023 52,719 2,608,306 (101,264) - 2,559,761 2023 1,983 (47,204) 903,675 856,471 2023 630,762 317,211 86 948,059

3) The Company's financial information for investments accounted for using equity method that are individually insignificant was as follows:

Attributable to the Company: Net income Other comprehensive income Total comprehensive income	2024 $ 18,880 53,364 $ 72,244	2023
		27,495 11,878
		39,373

(Continued)

30

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

To assess the impairment of Grand Cathay Venture Capital Co., Ltd., an appraisal report issued by an expert was prepared based on an income approach and asset-based approach to estimate the value in use and the fair value of the equity investment, and based on a comparison of the calculation results with the higher of fair value less costs to sell and value in use, a reversal of an impairment loss of $14,856 thousand was recognized in 2024.

None of the investments using equity method of the Company was pledged as collateral as of December 31, 2024 and 2023.

(h) Property, plant and equipment

The movements of the property, plant and equipment of the Company were as follows:

Cost: Balance as of January 1, 2024 Additions Disposals Reclassification Balance as of December 31, 2024 Balance as of January 1, 2023 Additions Disposals Reclassification Balance as of December 31, 2023 Accumulated depreciation: Balance as of January 1, 2024 Depreciation Disposals Balance as of December 31, 2024 Balance as of January 1, 2023 Depreciation Disposals Balance as of December 31, 2023 Carrying value: Balance as of December 31, 2024 Balance as of January 1, 2023 Balance as of December 31, 2023		Land $ 812,199 - - - $ 812,199 $ 812,199 - - - $ 812,199 $ - - - $ - $ - - - $ - $ 812,199 $ 812,199 $ 812,199	Land improvements 8,462 - - - 8,462 8,462 - - - 8,462 8,446 16 - 8,462 8,425 21 - 8,446 - 37 16	Buildings and structures 226,405 - - - 226,405 226,405 - - - 226,405 125,163 6,081 - 131,244 119,081 6,082 - 125,163 95,161 107,324 101,242	Machinery and equipment 7,528,153 7,381 (88,140) 46,111 7,493,505 7,532,609 2,483 (9,839) 2,900 7,528,153 6,345,778 200,806 (88,140) 6,458,444 6,148,037 207,580 (9,839) 6,345,778 1,035,061 1,384,572 1,182,375	Transportation equipment 1,655 - - - 1,655 1,655 - - - 1,655 1,655 - - 1,655 1,615 40 - 1,655 - 40 -	Other equipment 620,661 5,991 (29) - 626,623 556,015 49,632 (1,020) 16,034 620,661 438,360 36,291 (29) 474,622 405,954 33,426 (1,020) 438,360 152,001 150,061 182,301	Construction in progress 64,019 2,730 - (61,807) 4,942 53,965 28,988 - (18,934) 64,019 - - - - - - - - 4,942 53,965 64,019	Total 9,261,554 16,102 (88,169) (15,696)
									9,173,791
									9,191,310 81,103 (10,859) -
									9,261,554
									6,919,402 243,194 (88,169)
									7,074,427
									6,683,112 247,149 (10,859)
									6,919,402
									2,099,364
									2,508,198
									2,342,152

As of December 31, 2024 and 2023, the collateral for property, plant and equipment, please refer to note 8.

The Company entered into a contract with Zung-fu Co., Ltd. to build solar equipment. The total contract amount was $31,027 thousand, which was completed and recognized as property, plant and equipment during 2023.

(Continued)

31

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

(i) Right-of-use assets

The cost and accumulated depreciation of leased land, buildings and structures, and transportation equipment of the Company were as follows:

Cost: Balance as of January 1, 2024 Lease modification Disposals Balance as of December 31, 2024 Balance as of January 1, 2023 Additions Lease modification Disposals Balance as of December 31, 2023 Accumulated depreciation: Balance as of January 1, 2024 Depreciation Disposals Balance as of December 31, 2024 Balance as of January 1, 2023 Depreciation Disposals Balance as of December 31, 2023 Carrying amount: Balance as of December 31, 2024 Balance as of January 1, 2023 Balance as of December 31, 2023	Land $ 4,290 122 - $ 4,412 $ 4,148 - 142 - $ 4,290 $ 523 229 - $ 752 $ 301 222 - $ 523 $ 3,660 $ 3,847 $ 3,767	Transportation equipment 7,660 - - 7,660 7,873 786 - (999) 7,660 3,332 2,553 - 5,885 1,784 2,547 (999) 3,332 1,775 6,089 4,328	Office equipment 14,154 - (4,814) 9,340 9,614 4,540 - - 14,154 5,897 2,590 (4,814) 3,673 3,369 2,528 - 5,897 5,667 6,245 8,257	Total 26,104 122 (4,814)
				21,412
				21,635 5,326 142 (999)
				26,104
				9,752 5,372 (4,814)
				10,310
				5,454 5,297 (999)
				9,752
				11,102
				16,181
				16,352

(j) Intangible assets

The movements of intangible assets of the Company were as follows:

Technical royalty Cost: Balance as of December 31, 2024 (Balance as of January 1, 2024) $ 14,623 Balance as of January 1, 2023 $ 14,623 Disposal - Balance as of December 31, 2023 $ 14,623 Accumulated amortization: Balance as of January 1, 2024 $ 10,399 Amortization 975 Balance as of December 31, 2024 $ 11,374	Computer software 2,635 1,845 790 2,635 1,463 690 2,153	Total
		17,258
		16,468 790
		17,258
		11,862 1,665
		13,527

(Continued)

32

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

Technical royalty Balance as of January 1, 2023 $ 9,424 Amortization 975 Balance as of December 31, 2023 $ 10,399 Carrying value: Balance as of December 31, 2024 $ 3,249 Balance as of January 1, 2023 $ 5,199 Balance as of December 31, 2023 $ 4,224	Computer software 919 544 1,463 482 926 1,172	Total
		10,343 1,519
		11,862
		3,731
		6,125
		5,396

(k) Other non-current assets

Long-term prepaid expenses	December 31, 2024 $ 19,735	December 31, 2023
		39,563

Except catalysts shall be allocated by actual consumption, the rest of prepaid expenses will be expensed on a straight line basis over the economic lives.

(l) Short-term borrowings

Short-term borrowings of the Company were as follows:

Secured bank loans Unsecured bank loans Total Unused short-term credit lines Range of interest rate	December 31, 2024 $ 785,000 400,000 $ 1,185,000 $ 652,007 1.85%~2.055%	December 31, 2023
		400,000 600,000
		1,000,000
		1,271,600
		1.80%~2.095%

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

(m) Other payables

Accrued payroll Compensated absences Utility payable Payables on equipment Dividends payable Other payables－other Total	December 31, 2024 $ 22,615 14,500 21,820 3,980 452 32,633 $ 96,000	December 31, 2023
		19,059 14,409 18,165 9,006 452 30,030
		91,121

(Continued)

33

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

(n) Lease liabilities

Lease liabilities of the Company were as follows:

Current Non-current	December 31, 2024 $ 3,818 $ 6,919	December 31, 2023
		5,083
		10,647

For the maturity analysis, please refer to 6(v).

The amounts recognized in profit or loss were as follows:

2024 Interest on lease liabilities $ 291 Expenses relating to short-term leases $ 260 Expenses relating to leases of low-value assets, excluding short-term leases of low-value assets $ 348 The amounts recognized in the statement of cash flows was as follows: 2024 Total cash outflow for leases $ 5,987	2023
	368
	260
	422
	2023
	6,546

(o) Employee benefits

(i) Defined benefit plans

Reconciliations of defined benefit obligations at present value and plan assets at fair value are as follows:

Present value of defined benefit obligations Fair value of plan assets Net defined benefit liabilities	December 31, 2024 $ 151,990 (114,333) $ 37,657	December 31, 2023
		192,437 (147,751
		44,686

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

(Continued)

34

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

• 1) Composition of plan assets

The Company allocates pension funds in accordance with the Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund, and such funds are managed by the Labor Pension Fund Supervisory Committee. With regard to the utilization of the funds, minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with interest rates offered by local banks.

The Company’ s Bank of Taiwan labor pension reserve account balance amounted to $114,333 thousand as of December 31, 2024. For information on the utilization of the labor pension fund assets, including the asset allocation and yield of the fund, please refer to the website of the Labor Pension Fund Supervisory Committee.

• 2) Movements in the present value of defined benefit obligations

The movements in the present value of defined benefit obligations of the Company were as follows:

Defined benefit obligations at January 1 Current service costs and interest cost Remeasurements of defined benefit liabilities －Actuarial gains and losses arising from financial assumptions －Actuarial gains and losses arising from experience adjustments Benefits paid Defined benefit obligations at December 31	2024 $ 192,437 2,809 (1,915) 15,023 (56,364) $ 151,990	2023 215,541 3,176 - (4,535) (21,745) 192,437

• 3) Movements in fair value of plan assets

The movements in the fair value of plan assets of the defined benefit the Company were as follows:

Fair value of plan assets at January 1 Interests income Remeasurements of defined benefit assets －Return on plan assets (excluding interest income) Contributions Benefits paid Fair value of plan assets at December 31	2024 $ 147,751 1,570 14,066 1,394 (50,448) $ 114,333	2023 165,435 1,657 1,835 569 (21,745) 147,751

(Continued)

35

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

• 4) Expenses recognized in profit or loss

The expenses recognized in profit or loss of the Company were as follows:

Current service costs Net interest on defined benefit liabilities (assets) Operating cost Operating expenses	2024 $ 885 354 $ 1,239 2024 $ 915 324 $ 1,239	2023
		1,021 498
		1,519
		2023
		1,129 390
		1,519

• 5) Actuarial assumptions

Principal actuarial assumptions at the end of the reporting period were as follows:

Discount rate Future salary increase rate	December 31, 2024 December 31, 2023 1.50% 1.00% 1.50% 1.50%

The expected allocation payment to be made by the Company to the defined benefit plans for the one-year period after the reporting date is $14,196 thousand.

The weighted-average lifetime of the defined benefit plans is 2.9 years.

• 6) Sensitivity analysis

If the actuarial assumptions had changed, the impact on the present value of the defined benefit obligations shall be as follows:

December 31, 2024 Discount rate(changed by 0.25%) Future salary increase rate(changed by 1%) December 31, 2023 Discount rate(changed by 0.25%) Future salary increase rate(changed by 1%)	Influence of defined benefit obligation
	Increase Decrease $ (930) 948 3,848 (3,631 (1,213) 1,237 5,004 (4,707

(Continued)

36

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown above. The method used in the sensitivity analysis is consistent with the calculation of pension liabilities in the balance sheets.

The calculation and assumptions used in the sensitivity analysis during the year were consistent with prior year.

(ii) Defined benefit plans

The Company allocates 6% of each employee’s monthly wages to the labor pension personal account at the Bureau of Labor Insurance in accordance with the provisions of the Labor Pension Act. Under these defined contribution plans, the Company allocates a fixed amount to the Bureau of Labor Insurance without additional legal or constructive obligation.

The pension costs incurred from the contributions to the Bureau of the Labor Insurance amounted to $8,199 thousand and $8,321 thousand for the years ended December 31, 2024 and 2023, respectively.

(p) Income taxes

(i) Income tax benefits

The components of income tax in the years ended 2024 and 2023 were as follows:

Current income tax expense (benefits): Adjustment for prior periods Deferred income tax expense: Origination and reversal of temporary difference Adjustment for prior periods Income tax benefits	2024 $ (6) (99,897) - (99,897) $ (99,903)	2023 (10,643) (123,177) 101 (123,076) (133,719)

The amount of income tax recognized in other comprehensive income for 2024 and 2023 was as follows:

2024 Items that will not be reclassified subsequently to profit or loss: Remeasurement of defined benefit plans $ (192)	2023 (1,274)

(Continued)

37

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

Reconciliation of income tax and loss before tax for 2024 and 2023 is as follows:

Loss before tax Income tax using the Company’s domestic tax rate Gains from securities transactions Non-deductible expenses Tax-exempt income Investment loss (gain) Current-year losses for which no deferred tax asset was recognized Adjustment for prior periods Total	2024 $ (480,749) $ (96,150) (13,335) 96 (9,348) 6,564 12,276 (6) $ (99,903)	2023 (595,903) (119,181) (6,745) 164 (2,063) (2,387) 7,035 (10,542) (133,719)

(ii) Deferred tax assets and liabilities

Recognized deferred tax assets and liabilities

Movements of recognized deferred tax assets and liabilities for the years ended December 31, 2024 and 2023 were as follows:

Deferred tax assets:

Balance at January 1, 2024 $ Recognized in profit or loss Recognized in other comprehensive income Balance at December 31, 2024 $ Balance at January 1, 2023 $ Recognized in profit or loss Recognized in other comprehensive income Balance at December 31, 2023 $	Allowance for inventory write-down 12,917 (9,091) - 3,826 3,307 9,610 - 12,917	Defined benefit pension plans 8,937 (1,214) (192) 7,531 10,021 190 (1,274) 8,937	Accumulated compensated absences 2,755 (133) - 2,622 2,841 (86) - 2,755	Tax loss carry forward 323,841 110,497 - 434,338 211,121 112,720 - 323,841	Others 123 (123) - - - 123 - 123	Total 348,573 99,936 (192)
						448,317
						227,290 122,557 (1,274)
						348,573

Deferred tax liabilities:

Balance at January 1, 2024 Recognized in profit or loss Balance at December 31, 2024 Balance at January 1, 2023 Recognized in profit or loss Balance at December 31, 2023	Land value increment tax $ 173,509 - $ 173,509 $ 173,509 - $ 173,509	Other - 39 39 519 (519) -	Total 173,509 39 173,548 174,028 (519) 173,509

(Continued)

38

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

The Company's income tax return for the year 2022 had been examined by the tax authorities.

(q) Capital and other equity

(i) Ordinary shares

As of December 31, 2024 and 2023, the number of authorized ordinary shares were $9,000,000 thousand shares with par value of $10 per share. As of December 31, 2024 and 2023, of 527,870 thousand shares were issued. All issued shares were paid up upon issuance.

(ii) Capital surplus

The balances of capital surplus of the Company were as follows:

Difference arising from subsidiary's share price and its carrying value Changes in ownership interests in subsidiaries Changes in equity of investments in associates using equity method Treasury share transactions Donation from shareholders Overdue dividends not received by shareholders Total	December 31, 2024 $ 8,953 79,165 7,815 4,430 13 29,287 $ 129,663	December 31, 2023
		8,953 26,300 6,745 4,430 13 29,287
		75,728

According to the R.O.C. Company Act, capital surplus can only be used to offset a deficit, and only the realized capital surplus can be used to increase the common stock or be distributed as cash dividends. The aforementioned realized capital surplus includes capital surplus resulting from premium on issuance of capital stock and earnings from donated assets received. According to the Regulations Governing the Offering and Issuance of Securities by Securities Issuers, capital increases by transferring capital surplus in excess of par value should not exceed 10% of the total common stock outstanding.

On August 16, 2024, the Company's subsidiary, YSIC Ltd., acquired the remaining 2,266 thousand shares of its subsidiary, KUN SHAN INTERNATIONAL LTD. at a price of USD 0.585 per share. The total acquisition amount was USD 1,326 thousand (equivalent to NTD 42,597 thousand). The difference between the acquisition cost and the book value of the subsidiary was recorded under capital surplus, with the amount attributable to the Company being $52,865 thousand. Please refer to the 2024 consolidated financial report for details.

(Continued)

39

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

(iii) Retained earnings

The Company's Article of Incorporation stipulates that Company's net earnings should first be used to offset the prior years' deficits, if any, before paying any income taxes. Of the remaining balance, 10% is to be appropriated as legal reserve, and then any remaining profit together with any undistributed retained earnings shall be distributed according to the distribution plan proposed by the Board of Directors and submitted to the stockholders’ meeting for approval.

In general, cash dividends shall not be less than 30% of total dividends. However, based on the need to respond to changes in the industry, major investment plans and improve the financial structure, or in the case of sudden major capital needs, the cash dividend payout rate could be adjusted to 10% to 30%. If the cash dividend is less than $0.1 per share, it will not be issued, and the stock dividend will be paid instead.

1) Legal reserve

When a company incurs no loss, it may, pursuant to a resolution by a shareholders’ meeting, distribute its legal reserve by issuing new shares or by distributing cash, and only the portion of legal reserve which exceeds 25% of capital may be distributed.

2) Special reserve

In accordance with ruling issued by the FSC, the Company is required to appropriate a special reserve in the amount equal to the sum of debit elements under other equity arising in current period. Special reserve shall be appropriated from current period net income plus items other than net income adjusted to the current year's undistributed earnings and undistributed prior period earnings; for debit elements under other equity arising in prior periods, special reserve is appropriated from undistributed prior period earnings and is prohibited from distribution. If any of the debit elements are reversed, then the special reserve in the amount equal to the reversal may be released for earnings distribution.

3) Earnings distribution

On May 31, 2024, the shareholders’ meeting resolved not to distribute the 2023 earnings. On May 30, 2023, the shareholders’ meeting resolved the distribution of earnings for 2022. These earnings were appropriated as follows:

2022. These earnings were appropriated as follows:
		2022
Dividends distributed to ordinary shareholders:
Cash	$	105,553

(Continued)

40

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

(iv) Other equity

Changes of other equity of the Company were as follows:

Balance as of January 1, 2024 Exchange differences on foreign operations Exchange differences on subsidiaries, associates and joint ventures accounted for using equity method Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income on subsidiaries, associates and joint ventures accounted for using equity method Cumulative losses (gains) reclassified to retained earnings on associates disposal of investments in equity instruments designated at fair value through other comprehensive income Balance as of December 31, 2024 Balance as of January 1, 2023 Exchange differences on subsidiaries, associates and joint ventures accounted for using equity method Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income on subsidiaries, associates and joint ventures accounted for using equity method Cumulative losses (gains) reclassified to retained earnings on disposal of investments in equity instruments designated at fair value through other comprehensive income Cumulative losses (gains) reclassified to retained earnings on associates disposal of investments in equity instruments designated at fair value through other comprehensive income Balance as of December 31, 2023	Exchange differences on translation of foreign financial statements $ (8,216) 876 38,848 - - - $ 31,508 $ (7,392) (824) - - - - $ (8,216)	Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income 763,338 - - 277,855 472,216 (254,447) 1,258,962 (207,460) - 316,768 697,475 1,771 (45,216) 763,338	Total 755,122 876 38,848 277,855 472,216 (254,447) 1,290,470 (214,852) (824) 316,768 697,475 1,771 (45,216) 755,122

(Continued)

41

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

(r) Loss per share

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

(i) Basic loss per share

Loss attributable to the Company Weighted-average number of ordinary shares outstanding Loss per share (NTD)	2024 $ (380,841) 527,870 $ (0.72)	2023 (462,184) 527,870 (0.88)

There was no dilutive potential ordinary shares of the Company.

(s) Revenue from contracts with customers

(i) Disaggregation of revenue

Primary geographical markets: Asia America Europe Major products/services lines: Commodity sales revenue (ii) Contract balances Contract liabilities-unearned sales revenue	2024 $ 11,219,870 10,515 12,909 $ 11,243,294 $ 11,243,294 December 31, 2024 December 31, 2023 $ - 1,957	2023
		9,271,861 31,348 16,033
		9,319,242
		9,319,242
		January 1, 2023
		7,829

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

The major change in the balance of contract assets and contract liabilities is the difference between the time frame in the performance obligation to be satisfied and the payment to be received.

(Continued)

42

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

• (t) Non-operating income and expenses

(i) Other income

Details of other income of the Company were as follows:

Rent income Dividend income Others Total (ii) Other gains and losses Foreign exchange gains Gains on financial assets at fair value through profit or loss Reversal of impairment loss Gain on lease modification Others Total (iii) Finance costs Interest expense	2024 $ 120 15,140 2,702 $ 17,962 2024 $ 6,723 103,701 650 27 - $ 111,101 2024 $ 19,061	2023 117 11,514 5,840 17,471 2023 1,799 15,052 14,608 28 (33) 31,454 2023 14,486

• (u) Employee compensation and directors and supervisors' remuneration

According to the Article of Incorporation, once the Company has annual profit, it should appropriate 1%~5% of the profit to its employees and 2.5% or less to its directors as remuneration. However, if the Company still has accumulated deficit, the profit should be reserved to offset the deficit.

For the years ended December 31, 2024 and 2023, there was no appropriation of remunerations to employees and directors because of net loss before tax. The information is available on the Market Observation Post System Website. These amounts were calculated using the Company's net income before tax without the remunerations to employees and directors for each period, multiplied by the proposed percentage which is stated under the Company's proposed Article of Incorporation. These remunerations were expensed under operating costs or expenses for each period. If there are any subsequent adjustments to the actual remuneration amounts after the annual shareholders' meeting, the adjustment will be regarded as changes in accounting estimates and will be reflected in profit or loss in the following year. Shares distributed to employees as employees' remuneration are calculated based on the closing price of the Company's shares on the day before the approval by the Board of Directors.

(Continued)

43

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

• (v) Financial instruments

• (i) Credit risk

  • 1) Credit risk exposure

The carrying amount of financial assets and contract assets represents the maximum amount exposed to credit risk.

• 2) Concentration of credit risk

As of December 31, 2024 and 2023, the Company reviewed the concentrations of credit risk arising from the major top ten customers, and it was 95% and 95% of the total accounts receivable, respectively. The concentrations of credit risk of the remaining accounts receivable are relatively small.

• 3) Credit risk of receivables

For credit risk exposure of note and trade receivables, please refer to note 6(c). Other financial assets at amortized cost include time deposits and other receivables, etc. The allowance for the receivables is measured by lifetime expected credit losses. The remaining financial assets are measured by 12-month expected credit losses.

• (ii) Liquidity risk

The following table shows the contractual maturities of financial liabilities, including estimated interest payments.

December 31, 2024 Non-derivative financial liabilities Short-term borrowings Accounts payable Lease liabilities December 31, 2023 Non-derivative financial liabilities Short-term borrowings Accounts payable Others	Carrying amount		Contractual cash flows		Within 1 year		1-2 years		2-5 years	Over 5 years
	$ 1,185,000 856,480 10,737 $ 2,052,217 $ 1,000,000 1,082,060 15,730 $ 2,097,790		1,187,085 856,480 11,382		1,187,085 856,480 4,000		- - 2,312		- - 2,241 2,241 - - 4,277 4,277	- - 2,829
			2,054,947		2,047,565		2,312			2,829
			1,003,090 1,082,060 16,654		1,003,090 1,082,060 5,372		- - 3,994			- - 3,011
			2,101,804		2,090,522		3,994			3,011

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

(Continued)

44

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

(iii) Market risk

1) Currency risk

The Company’s significant exposure to foreign currency risk was as follows:

Financial assets Monetary items USD Financial liabilities Monetary items USD	December 31, 2024 Foreign currency Exchange rate NTD $ 8,762 32.785 287,262 6,351 32.785 208,218	December 31, 2024 Foreign currency Exchange rate NTD $ 8,762 32.785 287,262 6,351 32.785 208,218	December 31, 2023	December 31, 2023
	Foreign currency $ 8,762 6,351	Exchange rate 32.785 32.785	Foreign currency 9,207 5,779	Exchange rate NTD 30.705 282,701 30.705 177,444

The Company's exposure to foreign currency risk arises from the translation of the foreign currency exchange gains and losses on cash and cash equivalents, accounts receivable, other receivables, accounts payable and other payables that are denominated in foreign currency. A strengthening (weakening) of 1% of the NTD against the USD and EUR as of December 31, 2024 and 2023, for the years ended December 31, 2024 and 2023, respectively, would have increased (decreased) net loss before tax by $790 thousand and $1,053 thousand. The analysis is performed on the same basis.

For years 2024 and 2023, foreign exchange gain (including realized and unrealized portions) amounted to $6,724 thousand and $1,799 thousand, respectively.

2) Interest rate risk

Please refer to the notes on liquidity risk management and interest rate exposure of the Company's financial assets and liabilities.

The following sensitivity analysis is based on the exposure to the interest rate risk of derivative and non derivative financial instruments on the reporting date. Regarding assets with variable interest rates, the analysis is based on the assumption that the amount of assets outstanding at the reporting date was outstanding through the year. The rate of change is expressed as the interest rate increases or decreases by 1% when reporting to management internally, which also represents the management's assessment of the reasonably possible interest rate change.

If the interest rate had increased/decreased by 1% the Company loss before tax would have decreased/increased by $11,850 thousand and $10,000 thousand for the years ended December 31, 2024 and 2023, respectively, with all over variable factors remaining constant. This is mainly due to Company’s loan at variable rates.

(Continued)

45

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

• 3) Other market price risk

If the securities price at the reporting date changes (the analysis is performed on the same basis and all other variable factors remaining constant), the effect for comprehensive income is illustrated below:

Prices of securities at the reporting date	2024	Net income 954 (954)	2023 Other comprehensive income after tax Net income 9,601 1,389 (9,601) (1,389)	2023 Other comprehensive income after tax Net income 9,601 1,389 (9,601) (1,389)
	Other comprehensive income after tax $ 12,344 $ (12,344)		Other comprehensive income after tax 9,601 (9,601)
Increasing 1% Decreasing 1%
				(1,389)

• (iv) Fair value information

• 1) Types and fair value of financial instruments

Financial assets measured at fair value through profit or loss and financial assets at fair value through other comprehensive income are measured at fair value on the basis of repeatability. The carrying amount and fair value of the financial assets and liabilities, including the information on fair value hierarchy were as follows; however, except as described in the following paragraphs, for financial instruments not measured at fair value whose carrying amount is reasonably close to the fair value, for example, financial assets and liabilities measured at amortized cost such as cash and cash equivalents, accounts receivables, other receivables, other financial assets, refundable deposits, shortterm borrowings, accounts payable, other payables, long-term borrowings, deposits receivable and lease liabilities, disclosure of fair value information is not required:

Financial assets at fair value through profit or loss: Listed stocks Financial assets at fair value through other comprehensive income: Domestic and foreign non-listed stocks Total		December 31, 2024	December 31, 2024	December 31, 2024
	Book value $ 95,388 1,234,431 $ 1,329,819		Fair value
		Level 1 95,388 - 95,388	Level 2 - - -	Level 3 - 1,234,431 1,234,431	Total
					95,388 1,234,431
					1,329,819

(Continued)

46

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

Financial assets at fair value through profit or loss: Listed stocks Financial assets at fair value through other comprehensive income: Domestic and foreign non- listed stocks Total Financial liabilities measured at amortized cost:		December 31, 2023	December 31, 2023	December 31, 2023
	Book value $ 138,940 960,051 $ 1,098,991		Fair value
		Level 1 138,940 - 138,940	Level 2 - - -	Level 3 - 960,051 960,051	Total
					138,940 960,051
					1,098,991

• 2) Valuation techniques for financial instruments measured at fair value

• A. Non-derivative financial instruments

A financial instrument is regarded as being quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency and those prices represent actual and regularly occurring market transactions on an arm’ s-length basis. Whether transactions are taking place ‘regularly’ is a matter of judgment and depends on the facts and circumstances of the market for the instrument.

Quoted market prices may not be indicative of the fair value of an instrument if the activity in the market is infrequent, the market is not well-established, only small volumes are traded, or bid-ask spreads are very wide. Determining whether a market is active involves judgment.

Measurements of fair value of financial instruments without an active market are based on valuation technique or quoted price from a competitor. Fair value, measured by using valuation technique that can be extrapolated from either similar financial instruments or discounted cash flow method or other valuation techniques, including models, is calculated based on available market data at the reporting date. For example, yield curve of Taipei Exchange and average interest rate of commercial paper quoted by Reuters.

Measurements of fair value of equity investments without an active market nor quoted market price are based on comparable listed company method. This method is based on the estimated earnings before interest, taxes, depreciation and amortization and the multipliers that are extrapolated from comparable listed company quoted prices. The estimated fair values are adjusted to the discounting effect of lack of market liquidity.

(Continued)

47

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

B. Derivative financial instruments

Measurement of the fair value of derivative instruments is based on the valuation techniques generally accepted by market participants such as the discounted cash flow or option pricing models. Fair value of currency swap contract is usually determined by the forward currency exchange rate.

• 3) Transfers between Level 1 and Level 2

There is no transfer for the years ended December 31, 2024 and 2023.

• 4) Reconciliation of Level 3 fair values

Opening balance, January 1, 2024 Total gains and losses recognized Other comprehensive income Capital reduction by cash Ending Balance, December 31, 2024 Opening balance, January 1, 2023 Total gains and losses recognized Other comprehensive income Disposal/redemption Ending Balance, December 31, 2023	Fair value through other comprehensive income
	Unquoted equity instruments $ 960,051 277,855 (3,475) $ 1,234,431 $ 643,571 316,768 (288) $ 960,051

Above-mentioned total gains and losses were included in unrealized gains and losses from financial assets at fair value through other comprehensive income. Among those related to the assets still held on December 31, 2024 and 2023 were as follows:

Total gains and losses recognized: In other comprehensive income, and presented in “unrealized gains and losses from financial assets at fair value through other comprehensive income”	2024 2023 $ 277,855 316,768

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

The Company’ s financial instruments that use Level 3 inputs to measure fair value include financial assets measured at fair value through profit or loss-equity investments.

The Company’ s equity investments without an active market which are classified as Level 3 have numerous unobservable inputs. The significant unobservable inputs of equity instrument investments are not correlated to each other.

(Continued)

48

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

Quantified information of significant unobservable inputs was as follows:

Item	Valuation technique Market approach (Comparable listed company method) Net asset value method	Significant unobservable inputs Inter-relationship between significant unobservable inputs and fair value measurement ‧ Price to book ratio (1.12~1.90 and 1.06~2.3 as of December 31, 2024 and 2023, respectively) ‧ Lack of market liquidity discount (10%~30% December 31, 2024 and 2023) ‧ The fair value would increase if price to book ratio increase ‧ The fair value would decrease if lack of market liquidity discount increase ‧ Net asset value ‧ The estimated fair value would increase if the net asset value were higher
Financial assets at fair value through other comprehensive income - equity investments without an active market

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

The fair value measurement of financial instruments by the Company is reasonable, but the use of different evaluation models or evaluation parameters may result in different evaluation results. For financial instruments classified as Level 3, changing the price to book ratio or liquidity discount would have the following effects on other comprehensive income:

December 31, 2024 Financial assets at fair value through other comprehensive income December 31, 2023 Financial assets at fair value through other comprehensive income	Inputs Price to book ratio Liquidity discount Price to book ratio Liquidity discount	Increase/ Decrease 10% 10% 10% 10%	Other comprehensive income
			Favorable Unfavorable 4,039 (4,039) 32,736 (32,736) 5,123 (5,123) 25,911 (25,911)

The favorable and unfavorable changes of the Company refer to the fluctuation of fair value, and the fair value is calculated by valuation techniques based on the unobservable input parameters of different degrees.

(Continued)

49

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

(w) Financial risk management

• (i) Overview

The Company have exposures to the following risks from its financial instruments:

• 1) credit risk

• 2) liquidity risk

• 3) market risk

The following likewise discusses the Company’ s objectives, policies and processes for measuring and managing the above mentioned risks. For more disclosures about the quantitative effects of these risks exposures, please refer to the respective notes in the accompanying parent company only financial statements.

• (ii) Structure of risk management

The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework. The financial department of the Company provides services and coordinates the operation of the financial market. And the important activities are subject to the Board of Directors' approval. The Company must be abided by the financial risk management and operation. Internal Audit undertakes reviews of risk management controls and procedures, the results of which are reported to the Board of Directors regularly.

• (iii) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers and investments in debt securities.

• 1) Accounts receivable and other receivables

The financial department has established a credit policy under which each new customer is analyzed individually for creditworthiness before the Company’ s standard payment and delivery terms and conditions are offered. The Company’s review includes external ratings, when available, and bank references. Purchase limits are established for each customer and represent the maximum open amount without requiring approval from the financial department; these limits are reviewed regularly. Customers that fail to meet the Company’ s benchmark creditworthiness may transact with the Company only on a prepayment basis.

The customers of the Company covered many types and regions. In order to reduce credit risk, the Company review financial status and recoverable of account receivable each customer regularly and accounted loss allowance.

(Continued)

50

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

The Company has allowance for impairment losses account to reflect the estimated loss of account receivable and other receivables. The main components of the allowance account include specific loss components related to individual significant risks, and combined loss components established for similar asset groups that have occurred but have not yet been identified. Portfolio loss allowance accounts are determined based on historical payment statistics for similar financial assets.

2) Investments

The exposure to credit risk for the bank deposits, fixed income investments, and other financial instruments is measured and monitored by the Company’ s finance department. The Company only deals with financial institutions with good credit rating. The Company does not concentrate on specific counterparty hence there is no significant credit risk arising therefrom.

(iv) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’ s approach to managing liquidity is to ensure, as far as possible, that it always has sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’ s reputation.

The Company manages sufficient cash and cash equivalents so as to cope with its operations and mitigate the effects of fluctuations in cash flows. The Company’ s management supervises the banking facilities and ensures compliance with the terms of loan agreements.

(v) Market risk

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

1) Currency risk

The Company is exposed to currency risk on sales and purchases are denominated in a currency other than the respective functional currency of the Company. The currency used in these transactions is USD. The Company adopts a natural hedging strategy. When the net assets and liabilities imbalances occur in the short-term, the Company buys or sells foreign currencies to maintain exposures at an acceptable level.

2) Interest rate risk

Interest rate risk is the risk of changes in the fair value of financial instruments caused by changes in market interest rates or the risk of changes in cash flows of financial instruments caused by changes in market interest rates. The interest rate risk of the financial assets and liabilities is described in the note of liquidity risk management.

(Continued)

51

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

• 3) Other market price risk

The Company is exposed to equity price risk due to the investments in equity securities. The Company actively monitors the performance of this investment portfolios using fair value basis. This is a strategic investment and is not held for trading. The Company does not actively trade in these investments.

(x) Capital management

The Company plan the capital which need in the future (including research and development costs and repayment) based on the characteristics of operating and development, and considering factors such as changes in the external environment to protect sustainable development of the Company, give back to shareowners and maintain the best structure to enhance value. Overall, the Company adopts a prudent risk management strategy.

• (y) Investing and financing activities not affecting current cash flows

The Company's non-cash investing and financing activities for the years ended December 31, 2024 and 2023 are as follows:

• (i) The Company had unpaid $3,980 thousand and $9,006 thousand for the acquisition of property, plant, and equipment for the years 2024 and 2023, respectively. Please refer to Note 6(m) for details.

• (ii) Reconciliation of liabilities arising from financing activities in 2024 and 2023 were as follows:

Lease liabilities Lease liabilities	January 1, 2024 $ 15,730 January 1, 2023 $ 15,786	Cash flows (5,088) Cash flows (5,496)	Non-cash changes Lease modification Lease additions 95 - Non-cash changes Lease modification Lease additions 114 5,326	December 31, 2024 10,737
				December 31, 2023 15,730
			Lease modification 114

(7) Related-party transactions

• (a) Names and relationship with related parties

The followings are subsidiaries and related parties that have had transactions with the Company during periods covered in the parent company only financial statements.

Name of related party	Relationship with the Company
YSIC Ltd.	Subsidiary
Yuan-Shin Materials Technology Co., Ltd.	Subsidiary
Yangmingshan Tien Lai Resort & SPA	Subsidiary
Tien Lai Co., Ltd.	Affiliated company
KUN SHAN INTERNATIONAL Ltd.	Subsidiary
GRAND CATITAL CO., LTD.	Subsidiary

(Continued)

52

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

Name of related party Relationship with the Company Kun Shan Yu-Fu Technology Education Subsidiary Consulting Co., Ltd. Kun Shan Jia-An Technology Education Subsidiary Consulting Co., Ltd. Eastern Broadcasting Co., Ltd. A substantive related party

• (b) Significant transactions with related parties

• (i) Receivables from related parties

The amounts of receivables from related parties were as follows:

(ii)	Accounts	Types of related parties
	Other receivables Rental income Other subsidiaries

(iii) Operating expense

The Company paid rent and purchased the souvenirs for the shareholders from related parties. The amounts of expenses were as follows:

Yangmingshan Tien Lai Resort & SPA Other subsidiaries Operating costs Yuan-Shin Materials Technology Co., Ltd.	2024 $ 261 171 $ 432 2024 $ 130	2023
		189 171
		360
		2023
		780

(iv) Operating costs

The Company paid manpower support service fee to a related party and recognized it in operating costs.

• (c) Key management personnel compensation

Short-term employee benefits Post-employment benefits	2024 $ 27,504 748 $ 28,252	2023
		25,748 638
		26,386

(Continued)

53

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

(8) Assets pledged as security:

The carrying amounts of pledged assets were as follows:

Assets pledged as security	Liabilities secured by pledge Short-term borrowings	December 31, 2024 $ 786,685
Property, plant and equipment

(9) Commitments and contingencies:

(a) Letter of credit issued but not expired

Letter of credit outstanding for the import of raw materials	December 31, 2024 $ 1,472,993

(10) Losses due to major disasters: None.

(11) Subsequent events: None.

(12) Other:

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

By Function By item	2024	2024	2024	2023	2023	2023
	Operating cost	Operating expense	Total	Operating cost	Operating expense	Total
Employee benefits Salary Labor and health insurance Pension Remuneration of directors Others Depreciation Amortization	142,461 13,411 7,245 - 9,520 244,474 1,510	45,676 3,330 2,193 4,506 13,363 4,092 155	188,137 16,741 9,438 4,506 22,883 248,566 1,665	137,760 14,290 7,677 - 8,621 248,143 1,333	45,224 3,558 2,163 4,290 11,282 4,303 186	182,984 17,848 9,840 4,290 19,903 252,446 1,519

The information about employees and salary of the Company for the years ended December 31, 2024 and 2023 are as bellow:

Employees Non-employee directors Average employee benefits Average salary Average salary adjustment Remuneration of supervisors

(Continued)

54

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

Information regarding the Company's remuneration policy (including directors, managers, employees) is shown below:

An Audit Committee which is composed of all independent directors is set up according to Security and Exchange Act and replaces the functions of supervisors.

Remuneration policies for Directors and Managers are described as follows:

• (i) The policies, standards and portfolio of remunerating Directors, process of formulating the remuneration, and the connection between operating performance and future risks:

• 1) Remuneration policies, standards and portfolio

Director's (including independent director) remuneration and compensation are handled according to the Articles of Incorporation and "Director's transportation expense/ attendance fee/ remuneration standards" approved by the Board of Directors.

• a) Directors compensation: Depending on their level of participating in the Company's operation and the value of contribution, compensation is determined based on the general payment level in the same industry and should take into account if the Board members attend Board meetings in person, hold a position in Remuneration Committee, Audit Committee or other functional committees, and the degree of risks they take.

• b) Remuneration for Directors: When the Company profits, remunerates is paid based on rate stated in the Article of Incorporation.

• 2) Process of formulating the remuneration

• a) As required by the Article of Incorporation, the remuneration should not exceed 2.5% of the Company’s profit. If the Company still has accumulated deficit, the profit should be reserved to offset the deficit.

• b) Fixed compensation for directors is handled according to "Director's transportation expense/ attendance fee/ remuneration standards".

• 3) The connection between operating performance and future risks

According to the Article of Incorporation, Directors’ compensation is determined based on the level of profit of the Company and depend on the value of contribution to the Company's operation, which can be evaluated by "performance review policy of the Board of Directors" .

(Continued)

55

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

• (ii) The policies, standards and portfolio of remunerating managers and employees, process of formulating the remuneration, and the connection between operating performance and future risks:

• 1) Remuneration policies, standards and portfolio

Salary is formed by monthly wage, year-end bonus, and employee remuneration. The amount of year-end bonus and employee remuneration depend on their contribution to the Company's operation and their performance evaluation. Managers' year-end bonus is proposed by Remuneration Committee and approved by the Board of Directors.

• 2) Process of formulating the remuneration

• a) As required by the Article of Incorporation, the remuneration should appropriate 1% to 5% of the Company's profit. If the Company still has accumulated deficit, the profit should be reserved to offset the deficit.

• b) The amount of year-end bonus is based on yearly operational performance.

• 3) The connection between operating performance and future risks

According to the Article of Incorporation, remuneration is based on the profit of the Company. The Company's Remuneration Committee evaluates the rationality of managers remuneration on a regular basis, and will report to the Board of Directors

(Continued)

56

TAIWAN STYRENE MONOMER CORPORATION Notes to Consolidated Financial Statements

(13) Other disclosures:

• (a) Information on significant transactions

The following is the information on significant transactions required by the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” for the Company for the year ended December 31, 2024:

• (i) Lending to other parties: None.

• (ii) Guarantees and endorsements for other parties: None.

• (iii) Information regarding securities held at the reporting day (excluding investment in subsidiaries, associates and joint ventures):

ventures):
Name of holder	Category and name of security	Relationship with the security issuer	Account	Ending balance				Note
				Shares	Carrying value	Percentage of ownership (%)	Fair value
The Company	Test Research Inc.	-	Current financial assets at fair value through profit or loss	215,000	26,230	% 0.09	26,230
The Company	Solar Applied Materials Technology Corp.	-	Current financial assets at fair value through profit or loss	1,103,000	69,158	% 0.19	69,158
The Company	Universal Venture Capital Investment Corporation	-	Non-current investment in equity instrument at FVOCI	8,400,000	68,493	% 6.98	68,493
The Company	Global Investment Holding Co., Ltd	-	Non-current investment in equity instrument at FVOCI	10,233,608	92,613	% 5.82	92,613
The Company	Faith Alliance Corporation	-	Non-current investment in equity instrument at FVOCI	25,720	72	% 0.06	72
The Company	Excellence Electronic Co., Ltd.	-	Non-current investment in equity instrument at FVOCI	912	5	% 0.01	5
The Company	Leadwell Cnc Machines Mfg., Corp.	-	Non-current investment in equity instrument at FVOCI	37,352	1,056	% 0.06	1,056
The Company	Crownpo Technology Inc.	-	Non-current investment in equity instrument at FVOCI	709	-	% 0.01	-
The Company	Vxis Technology Corp.	-	Non-current investment in equity instrument at FVOCI	11,959	7	% 0.61	7
The Company	Asia Global Venture Capital II Co., Ltd	-	Non-current investment in equity instrument at FVOCI	440,979	10,518	% 10.00	10,518
The Company	Shieh Tai Biochemical Technology Co., Ltd	-	Non-current investment in equity instrument at FVOCI	120,339	-	% 0.32	-
The Company	Lof Solar Corp.	-	Non-current investment in equity instrument at FVOCI	600,000	-	% 3.05	-
The Company	Yuan-Jie Investment Co., Ltd.	-	Non-current investment in equity instrument at FVOCI	21,000,000	438,498	% 19.09	438,498
The Company	Yu-Jie Investment Co., Ltd.	-	Non-current investment in equity instrument at FVOCI	21,320,000	528,771	% 19.38	528,771
The Company	Deng Yun Co., Ltd.	-	Non-current investment in equity instrument at FVOCI	591,945	55,136	% 3.09	55,136
The Company	Lidien Inc.	-	Non-current investment in equity instrument at FVOCI	760,000	16,564	% 19.00	16,564
The Company	GVISION-USA, INC.	-	Non-current investment in equity instrument at FVOCI	666,667	22,698	% 19.05	22,698
YSIC Ltd.	Chip Hope Co., Ltd.	-	Current financial assets at fair value through profit or loss	40,000	2,684	% 0.06	2,684
YSIC Ltd.	Yuanta US Treasury 20+Year Bond ETF	-	Current financial assets at fair value through profit or loss	150,000	4,297	% -	4,297
YSIC Ltd.	Tung Thih Electronics Co., Ltd.	-	Current financial assets at fair value through profit or loss	22,000	1,951	% 0.02	1,951
YSIC Ltd.	Senao Networks Inc.	-	Current financial assets at fair value through profit or loss	84,469	16,556	% 0.14	16,556
YSIC Ltd.	TSC Auto ID Technology Co., Ltd.	-	Current financial assets at fair value through profit or loss	15,000	2,985	% 0.03	2,985
YSIC Ltd.	Simplo Technology Co., Ltd.	-	Current financial assets at fair value through profit or loss	10,000	3,970	% 0.01	3,970
YSIC Ltd.	Alexander Marine Co., Ltd.	-	Current financial assets at fair value through profit or loss	10,000	2,060	% 0.01	2,060
YSIC Ltd.	Taiwan Union Technology Corporation	-	Current financial assets at fair value through profit or loss	30,000	5,100	% 0.01	5,100
YSIC Ltd.	M31 Technology Corporation	-	Current financial assets at fair value through profit or loss	15,000	11,295	% 0.04	11,295
YSIC Ltd.	Global Unichip Corp.	-	Current financial assets at fair value through profit or loss	15,000	20,400	% 0.01	20,400

(Continued)

57

TAIWAN STYRENE MONOMER CORPORATION Notes to Consolidated Financial Statements

Name of holder	Category and name of security	Relationship with the security issuer	Account	Ending balance	Ending balance	Ending balance	Ending balance	Note
				Shares	Carrying value	Percentage of ownership (%)	Fair value
YSIC Ltd.	Realtek Semiconductor Corporation	-	Current financial assets at fair value through profit or loss	25,000	14,200	% -	14,200
YSIC Ltd.	Zilltek Technology Corp.	-	Current financial assets at fair value through profit or loss	15,000	4,808	% 0.03	4,808
YSIC Ltd.	Great Wall Enterprise Co., Ltd.	-	Current financial assets at fair value through profit or loss	10,000	515	% -	515
YSIC Ltd.	King Yuan Eletronics, Co., Ltd.	-	Current financial assets at fair value through profit or loss	80,000	8,920	% 0.01	8,920
YSIC Ltd.	Shin Kong Chi Shin Money Market Fund	-	Current financial assets at fair value through profit or loss	13,000	2,353	% 0.03	2,353
YSIC Ltd.	Hon Hai Precision Industry Co., Ltd.	-	Current financial assets at fair value through profit or loss	38,000	6,992	% -	6,992
YSIC Ltd.	JPC Connectivity Inc.	-	Current financial assets at fair value through profit or loss	30,000	4,395	% 0.02	4,395
YSIC Ltd.	U.D. Electronic Corp.	-	Current financial assets at fair value through profit or loss	84,000	8,484	% 0.10	8,484
YSIC Ltd.	M Power Information Co., Ltd.	-	Current financial assets at fair value through profit or loss	10,000	945	% 0.05	945
YSIC Ltd.	Parade Technologies, Ltd.	-	Current financial assets at fair value through profit or loss	15,000	11,505	% 0.02	11,505
YSIC Ltd.	MPI Corporation	-	Current financial assets at fair value through profit or loss	10,000	9,260	% 0.01	9,260
YSIC Ltd.	Cjw International Co., Ltd.	-	Non-current financial assets at fair value through profit or loss	676,413	6,967	% 0.47	6,967
YSIC Ltd.	Mcm Stamping Co., Ltd.	-	Non-current investment in equity instrument at FVOCI	54,430	68	% 0.63	68
YSIC Ltd.	Vxis Technology Corp.	-	Non-current investment in equity instrument at FVOCI	11,959	7	% 0.61	7
YSIC Ltd.	Yuan-Jie Investment Co., Ltd	-	Non-current investment in equity instrument at FVOCI	100,000	2,088	% 0.09	2,088
YSIC Ltd.	Yu-Jie Investment Co., Ltd	-	Non-current investment in equity instrument at FVOCI	103,000	2,555	% 0.09	2,555
Grand Capital Co., Ltd.	Deng Yun Co., Ltd.	-	Non-current investment in equity instrument at FVOCI	3,082,453	287,108	% 16.10	287,108
Yuan-Shin Materials Technology Co., Ltd.	Yuanta Financial Holding Co., Ltd.	-	Current financial assets at fair value through profit or loss	319,908	10,877	% -	10,877
Yuan-Shin Materials Technology Co., Ltd.	Weikeng Industrial Co., Ltd.	-	Current financial assets at fair value through profit or loss	40,000	1,338	% 0.01	1,338
Yuan-Shin Materials Technology Co., Ltd.	Wah Lee Industrial Co., Ltd.	-	Current financial assets at fair value through profit or loss	29,000	3,567	% 0.01	3,567
Yuan-Shin Materials Technology Co., Ltd.	TSC Auto ID Technology Co., Ltd.	-	Current financial assets at fair value through profit or loss	7,000	1,393	% 0.01	1,393
Yuan-Shin Materials Technology Co., Ltd.	Asustek Computer Inc.		Current financial assets at fair value through profit or loss	6,000	3,696	% -	3,696
Yuan-Shin Materials Technology Co., Ltd.	Lumax International Corp., Ltd.		Current financial assets at fair value through profit or loss	3,000	342	% -	342
Yuan-Shin Materials Technology Co., Ltd.	Supreme Electronics Co., Ltd.	-	Current financial assets at fair value through profit or loss	38,687	2,294	% 0.01	2,294
Yuan-Shin Materials Technology Co., Ltd.	Chang Wah Electromaterials Inc.	-	Current financial assets at fair value through profit or loss	5,000	228	% -	228
Yuan-Shin Materials Technology Co., Ltd.	Fubon Financial Holding Co., Ltd.	-	Current financial assets at fair value through profit or loss	10,605	958	% -	958

(Continued)

58

TAIWAN STYRENE MONOMER CORPORATION Notes to Consolidated Financial Statements

• (iv) Information regarding purchase or sale of securities for the period exceeding NTD300 million or 20% of the Company's paid-in capital: None

• (v) Information on acquisition of real estate with purchase amount exceeding NTD300 million or 20% of the Company's paid-in capital: None

• (vi) Information regarding receivables from disposal of real estate exceeding NTD300 million or 20% of the Company's paid-in capital: None

• (vii) Information regarding related-parties purchases and/or sales exceeding NTD100 million or 20% of the Company's paid-in capital: None

• (viii) Information regarding receivables from related-parties exceeding NTD100 million or 20% of the Company's paid-in capital: None

• (ix) Information regarding trading in derivative financial instruments: None.

• (b) Information on investees:

The following is the information on investees for the year ended December 31, 2024 (excluding information on investees in Mainland China):

				(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
Name of investor	Name of investee	Location	Main businesses and products	Original investment amount		Balance as of December 31, 2024			Net income (losses) of investee	Share of profits/losses of investee	Note
				December 31, 2024	December 31, 2023	Shares	Percentage of ownership	Carrying value
The Company	Grand Cathay Venture Capital Co., Ltd.	Taiwan	Investment business	400,000	400,000	40,000,000	% 25.00	588,585	(128,893)	(32,223)
The Company	Wonderland Enterprise Co., Ltd.	Taiwan	General investment business	325,230	325,230	29,629,597	% 37.04	1,551,212	(52,591)	(19,478)
The Company	Functional Coating System Technologies Co., Ltd.	Taiwan	OEM of Semiconductor and components conformal coating	28,500	28,500	1,744,186	% 34.88	30,244	12,634	4,407
The Company	Universal Investments Limited	British Cayman Islands	Real estate investment business	17,273	17,273	80	% 40.00	17,500	(1,457)	(807)
The Company	YSIC Ltd.	Taiwan	General investment, residential building and industrial plant development rental business	1,638,169	1,638,169	72,446,838	% 99.99	1,048,189	11,615	11,613	Subsidiary
The Company	Yuan-Shin Materials Technology Co. Ltd	Taiwan	Basic precision chemical materials and plastic raw material manufacturing	145,900	145,900	5,000,000	% 100.00	57,539	6,456	6,456	Subsidiary
The Company	Yangmingshan Tien Lai Resort & SPA	Taiwan	General hotel industry	630,555	630,555	25,865,618	% 65.07	691,657	(731)	(2,789)	Subsidiary
YSIC Ltd.	Kun Shan International Ltd.	Seychelles	General investment business	-	122,572	100,000	% 100.00	68,447	(1,384)	1,267	Subsidiary
YSIC Ltd.	Grand Capital Co., Ltd.	Seychelles	General investment business	90,182	90,182	2,698,002	% 100.00	288,875	(102)	(102)	Subsidiary
YSIC Ltd.	Yangmingshan Tien Lai Resort & SPA	Taiwan	General hotel industry	110,836	110,836	4,807,774	% 12.10	118,439	(731)	(448)	Subsidiary
YSIC Ltd.	Globaltop Technology Inc.	Taiwan	Aluminum Nitride Powder	-	162,643	-	% -	-	8,794	1,681
YSIC Ltd.	Tien Lai Co., Ltd.	Taiwan	Pipe Lines Construction	5,000	5,000	267,000	% 19.78	1,687	971	192
Yangmingshan Tien Lai Resort & SPA	Tien Lai Co., Ltd.	Taiwan	Pipe Lines Construction	4,080	4,080	408,000	% 30.22	4,626	971	293

• (c) Information on investment in mainland China:

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

					(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
Name of investee	Main businesses and products	Total amount of paid-in capital	Method of investment (Note 1)	Accumulated outflow of investment from Taiwan as of January 1, 2024	Investment flows		Accumulated outflow of investment from Taiwan as of December 31, 2024	Net income (losses) of the investee	Percentage of ownership	Investment income (losses)	Book value	Accumulated remittance of earnings in current period
					Outflow	Inflow
Kun Shan Yu-Fu Technology Education Consulting Co., Ltd.	Educational consulting, information operation consulting, software and data storage consultation	3,279 (USD 100)	( 2 )	119,665 (USD 3,650)	-	116,386 (USD 3,550	3,279 (USD 100)	7,129 (USD 222)	100.00%	5,676	29,825	51,526
Kun Shan Jia-An Technology Education Consulting Co., Ltd.	Educational consulting, information operation consulting, software and data storage consultation	-	( 2 )	(Note 3)	-	-	(Note 3)	25 (USD 1)	-%	15	-	-

• Note 1: The investment methods are divided into the following three types: (1) Direct investment in Mainland China. (2) Indirect investment in Mainland China through a holding company established in other countries. (3) Others.

• Note 2: The foreign currency transactions have been translated into New Taiwan Dollar at the exchange rate at the end of the financial reporting date and the average exchange rate (USD1= NTD32.785, USD1=NTD32.1004).

Note 3: Kun Shan Yu-Fu Technology Education Consulting Co., Ltd. had been spun-off as Kun Shan Yu-Fu Technology Education Consulting Co., Ltd. and Kun Shan Jia-An Technology Education Consulting Co., Ltd. Kun Shan Jia-An Technology Education Consulting Co., Ltd. completed liquidation in February 2024.

(Continued)

59

TAIWAN STYRENE MONOMER CORPORATION Notes to the Parent Company Only Financial Statements

• (ii) Upper limit on investment in Mainland China:

Accumulated Investment in Mainland China as of December 31, 2024	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment (Note)
3,279 (USD 100)	119,665 (USD 3,650)	629,002

Note: The investment limit was calculated based on the official document 10804600980 announced by the MOEAIC on March 12, 2019.

(iii) Significant inter-company transactions with the subsidiary in Mainland China: None.

• (d) Major shareholders:

Major shareholders:
Shareholding Shareholder’s Name	Shares	Percentage
Taiwan Steel Group United Co., Ltd.	41,446,000	% 7.85
Frank.C.Chen Foundation for Culture and Education	28,750,000	% 5.44

(14) Segment information:

The Company has provided the operating segments disclosure in the consolidated financial statements.

TAIWAN STYRENE MONOMER CORPORATION

Statement of Cash and Cash Equivalents

December 31, 2024

(Expressed in Thousands of New Taiwan Dollars)

Item Petty cash Deposits in bank Deposits in bank Total	Description Demand deposits in NTD Demand deposits in USD152 thousand@32.785	Amount
		$ 160 86,699 4,969 $ 91,828

〜 60 〜

TAIWAN STYRENE MONOMER CORPORATION

Statement of Financial Assets Measured at Fair Value through Profit or Loss - Current

December 31, 2024

(Expressed in Thousands of New Taiwan Dollars)

Name of investee		Beginning balance	Beginning balance		Addition	Addition	Addition		Decrease	Decrease	Ending balance Shares Amount 1,103,000 69,158 215,000 26,230 95,388	Accumulated impairment - - -	Collateral Note Nil Nil
		Shares	Amount		Shares		Amount		Shares 1,739,000 240,000	Amount
Listed stock: Solar Applied Materials Technology Corp. Test Research , Inc.		2,842,000 455,000	$ 110,412 28,528 $ 138,940		- -		- -			91,763 18,466
							-			110,229

〜 61 〜

TAIWAN STYRENE MONOMER CORPORATION

Statement of Accounts Receivable

December 31, 2024

(Expressed in Thousands of New Taiwan Dollars)

Client Name Description Non-related parties: Company A Payment for goods Company B " Company C " Company D " Company E " Others " Less: Loss allowance Total	Amount	Note
	$ 427,855 218,195 79,233 69,086 62,507 120,658 977,534 (49) $ 977,485	Note

Note: The amount of individual client in others does not exceed 5% of the account balance.

Statement of Inventories

Item Description Finished goods SM and PDEB By-product Toluene Semi-finished products Ethylbenzene Work in progress Ethylbenzene Raw materials Benzene, Ethylene Supplies Energy, Chemicals Less: Allowance for inventory decline in value	Description
		Cost $ 111,776 6,393 68,347 72,746 119,682 95,417 474,361 (19,132) $ 455,229

Note ： Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs incurred upon completion and selling expenses.

〜 62 〜

TAIWAN STYRENE MONOMER CORPORATION

Statement of Changes in Financial Assets Measured at Fair Value through Other Comprehensive Income - Non-current

For the year ended December 31, 2023

(Expressed in Thousands of New Taiwan Dollars)

Name of investee Yu-Jie Investment Co., Ltd. Yuan-Jie Investment Co., Ltd. Global Investment Holding Co., Ltd Universal Venture Capital Investment Corporation Deng Yun Co., Ltd. GVISION-USA, INC. Lidien Inc. Asia Global Venture Capital II Co., Ltd. Leadwell Cnc Machines Mfg., Corp. Vxis Technology Corp. Faith Alliance Corporation Excellence Electronic Co., Ltd. Crownpo Technology Inc. Shieh Tai Biochemical Technology Co., Ltd. Lof Solar Corp.	Beginning balance Shares Amount	Beginning balance Shares Amount	Addition Shares Amount (Note1) - 152,798 - 128,344 - - - 6,405 - 6,622 - - - - - - - - - - - - - - - - - - - - 294,169	Decrease Shares Amount (Note2) - - - - - 936 - - - - - 5,504 - 3,919 90,321 8,024 - 282 60,521 1,111 - 1 - 1 - 11 - - - - 19,789	Ending balance Shares Fair Value 21,320,000 528,771 21,000,000 438,498 10,233,608 92,613 8,400,000 68,493 591,945 55,136 666,667 22,698 760,000 16,564 440,979 10,518 37,352 1,056 11,959 7 25,720 72 912 5 709 - 120,339 - 600,000 - 1,234,431	Accumulated impairment	Collateral Note Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil
	Shares		Shares - - - - - - - - - - - - - - -	Shares - - - - - - - 90,321 - 60,521 - - - - -	Shares 21,320,000 21,000,000 10,233,608 8,400,000 591,945 666,667 760,000 440,979 37,352 11,959 25,720 912 709 120,339 600,000
	21,320,000 21,000,000 10,233,608 8,400,000 591,945 666,667 760,000 531,300 37,352 72,480 25,720 912 709 120,339 600,000	$ 375,973 310,154 93,549 62,088 48,514 28,202 20,483 18,542 1,338 1,118 73 6 11 - - $ 960,051				NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA

Note1: The amount of addition included gain on valuation $294,169 thousand.

Note2: The amount of decrease included a capital reduction of $3,475 thousand, and a loss on valuation of $16,314 thousand.

〜 63 〜

TAIWAN STYRENE MONOMER CORPORATION

Statement of Changes in Investments Accounted for Using the Equity Method

For the year ended December 31, 2023

(Expressed in Thousands of New Taiwan Dollars)

Name of investee Yangmingshan Tien Lai Resort & SPA YSIC Ltd. Yuan-Shin Materials Technology Co., Ltd. Grand Cathay Venture Capital Co., Ltd. Wonderland Enterprise Co., Ltd. Functional Coating System Technology Co., Ltd. Universal Investments Limited	Beginning balance Shares Amount 25,865,618 $ 699,045 72,446,838 937,735 5,000,000 54,173 40,000,000 821,087 29,629,597 948,059 1,744,186 25,837 80 17,430 $ 3,503,366	Addition (Note1) Shares Amount - 607 - 116,358 - 6,456 - - - 622,631 - 4,407 - 877 751,336	Addition (Note1) Shares Amount - 607 - 116,358 - 6,456 - - - 622,631 - 4,407 - 877 751,336	Decrease (Note2) Shares Amount - 7,995 - 5,904 - 3,090 - 232,502 - 19,478 - - - 807 269,776	Decrease (Note2) Shares Amount - 7,995 - 5,904 - 3,090 - 232,502 - 19,478 - - - 807 269,776	Ending balance	Ending balance	Amount 691,657 1,048,189 57,539 588,585 1,551,212 30,244 17,500 3,984,926	Market Value or Net Assets Value Unit price Total amount - 691,657 - 1,048,189 - 57,539 - 588,585 - 1,551,212 - 30,244 - 17,500 3,984,926	Collateral Note Nil Nil Nil Nil Nil Nil Nil
	Shares	Shares		Shares		Shares 25,865,618 72,446,838 5,000,000 40,000,000 29,629,597 1,744,186 80	Percentage of ownership % 65.07 % 99.99 % 100.00 % 25.00 % 37.04 % 34.88 % 40.00		Unit price - - - - - - -
	25,865,618 72,446,838 5,000,000 40,000,000 29,629,597 1,744,186 80	- - - - - - -		- - - - - - -

Note1: The amount of addition included investment income $22,476 thousand, other comprehensive income $674,980 thousand, and change in ownership interests in investments $53,880 thousand.

Note2: The amount of decrease included investment losses $55,297 thousand, other comprehensive losses $162,319 thousand, and dividend received $52,160 thousand.

〜 64 〜

TAIWAN STYRENE MONOMER CORPORATION

Statement of Accounts Payables

December 31, 2024

(Expressed in Thousands of New Taiwan Dollars)

Item Non-related parties: Company F Company G Company H Others Total	Decrease Payment for goods " " "	Amount	Note
		$ 478,053 173,029 48,481 64,897 $ 764,460	Note

Note: The amount of individual vendor in others does not exceed 5% of the account balance.

〜 65 〜

TAIWAN STYRENE MONOMER CORPORATION

Statement of Operating Costs

For the year ended December 31, 2023

(Expressed in Thousands of New Taiwan Dollars)

Item Cost of sales from manufacturing Direct raw materials Balance at 1 January Purchases of raw materials Balance at December 31 Indirect supplies Balance at January 1 Purchases of indirect supplies Balance at December 31 Direct labor Manufacturing overhead Manufacturing cost Work-in -process inventory, January 1 Purchases of work-in process inventory Work-in process inventory, December 31 Cost of goods manufactured Finished goods, January 1 Finished goods, December 31 Gain from recovery in value of inventories Total operating costs	Amount	Amount	Amount
	Subtotal		Total
	$ 342,098 9,792,453 (119,682) 22,823 971,354 (95,417)	10,014,869 898,760 50,466 560,435 11,524,530 159,860 3,241 (141,093) 11,546,538 270,333 (118,169) (45,456) $ 11,653,246

〜 66 〜

TAIWAN STYRENE MONOMER CORPORATION

Statement of Selling Expenses

For the year ended December 31, 2023

(Expressed in Thousands of New Taiwan Dollars)

Item Export expense Shipping expenses Salaries Commissions Others Total	Description	Amount Note $ 21,578 29,403 7,530 3,417 4,301 Note $ 66,229

Note: The amount of individual item in others does not exceed 5% of the account balance.

Statement of Administrative Expenses

Item Salaries Employee welfare Insurance Others Total	Amount Note $ 42,652 11,243 4,491 30,293 Note $ 88,679

Note: The amount of individual item in others does not exceed 5% of the account balance.

〜 67 〜

Statement of Prepayments: Note 6(e) Statement of Changes in Property, Plant and Equipment: Note 6(h) Statement of Changes in Accumulated Depreciation of Property, Plant and Equipment: Note 6(h) Statement of Changes in Right-of-use assets: Note 6(i) Statement of Changes in Accumulated Depreciation of Right-of-use assets: Note 6(i) Statement of Changes in Intangible Assets: Note 6(j) Statement of Deferred Tax Assets: Note 6(p) Statement of Other Non-current Assets: Note 6(k) Statement of Other Payables: Note 6(m) Statement of Lease Liabilities: Note 6(n) Statement of Deferred Tax Liabilities: Note 6(p) Statement of Operating Revenue: Note 6(s) Statement of the Net Amount of Other Revenues (Gains) and Expenses (Losses): Note 6(t) Statement of Finance Costs: Note 6(t) Statement of Current Period Employee Benefits, Depreciation, and Amortization by Function: Note 12

〜 68 〜