Stock Code:1310

TAIWAN STYRENE MONOMER CORPORATION

Parent Company Only Financial Statements

With Independent Auditors' Report for the Years Ended December 31, 2025 and 2024

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.

Contents	Page
1. Cover Page	1
2. Table of Contents	2
3. Independent Auditors’ Report	3
4. Balance Sheets	4
5. Statements of Comprehensive Income	5
6. Statements of Changes in Equity	6
7. Statements of Cash Flows	7
8. Notes to the Parent Company Only Financial Statements
(1) Company history	8
(2) Approval date and procedures of the financial statements	8
(3) New standards, amendments and interpretations adopted	8~10
(4) Summary of material accounting policies	10~24
(5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty	24~25
(6) Explanation of significant accounts	26~53
(7) Related-party transactions	53~55
(8) Assets pledged as security	55
(9) Commitments and contingencies	55
(10) Losses due to major disasters	55
(11) Subsequent events	55
(12) Other	56~57
(13) Other disclosures
(a) Information on significant transactions	58
(b) Information on investees	58
(c) Information on investment in mainland China	59
(14) Segment information	59
9. List of major account titles	60~69

KPMG

盐促速来群合嘌舒弹李浩巧

KPMG

台北市110615信義路5段7號68樓(台北101大樓)

68F., TAIPEI 101 TOWER, No. 7, Sec. 5,

Xinyi Road, Taipei City 110615, Taiwan (R.O.C.)

電話 Tel +886 2 8101 6666

傳真 Fax +886 2 8101 6667

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, 2025 and 2024, 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, 2025 and 2024, 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 the most significant 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.

KPMG
3-1

How the matter was addressed in our audit:

Our principal audit procedures included assessing whether the accounting policies regarding revenue recognition were in conformity with relevant accounting standards; obtaining an 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, based on customer-specific terms, 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.

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(m) "Impairment of non-financial assets" to the parent company only financial statements. For the accounting assumption and estimation uncertainty on non-financial assets, please refer to notes 5(a) 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 evaluation 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 different 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 to 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 25.72% and 22.46% of total assets at December 31, 2025 and 2024, and the related share of profit of subsidiaries, associates and joint ventures accounted for using equity method constituting 6.51% and 9.84% of total loss before tax for the years then ended.

KPMG

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:

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.
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.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the 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.
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.

KPMG

Obtain sufficient and 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 Yin, Yuan-Sheng and Wu, Lin.

KPMG

Taipei, Taiwan (Republic of China)
March 9, 2026

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.

(English Translation of Financial Statements Originally Issued in Chinese)

TAIWAN STYRENE MONOMER CORPORATION

Balance Sheets

December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

Assets		December 31, 2025		December 31, 2024
Current assets:		Amount	%	Amount	%
1100	Cash and cash equivalents (note 6(a))	$ 367,443	4	91,828	1
1110	Current financial assets at fair value through profit or loss (note 6(b))	79,725	1	95,388	1
1170	Accounts receivable, net (note 6(c))	531,230	6	977,485	10
1200	Other receivables (note 7)	1,997	-	1,556	-
1220	Current tax assets	1,054	-	1,148	-
130X	Inventories (note 6(d))	299,949	3	455,229	5
1410	Prepayments (note 6(e))	211,292	2	187,700	2
1476	Other current financial assets	-	-	20,000	-
	Total current assets	1,492,690	16	1,830,334	19
Non-current assets:
1517	Non-current financial assets at fair value through other comprehensive income (note 6(f))	1,530,869	16	1,234,431	13
1550	Investments accounted for using equity method (note 6(g))	4,132,138	43	3,984,926	41
1600	Property, plant and equipment (note 6(h) and 8)	1,875,294	20	2,099,364	22
1755	Right-of-use assets (note 6(i))	8,268	-	11,102	-
1780	Intangible assets (note 6(j))	2,494	-	3,731	-
1840	Deferred tax assets (note 6(p))	489,807	5	448,317	5
1920	Refundable deposits	2,826	-	3,729	-
1915	Prepayments for equipment	28,466	-	25,690	-
1995	Other non-current assets, others (note 6(k))	39,832	-	19,735	-
	Total non-current assets	8,109,994	84	7,831,025	81
Total assets		$ 9,602,684	100	9,661,359	100
Liabilities and Equity		December 31, 2025		December 31, 2024
---	---	---	---	---	---
Current liabilities:		Amount	%	Amount	%
2100	Short-term borrowings (notes 6(l) and 8)	$ 1,350,000	14	1,185,000	12
2130	Contract liabilities (note 6(s))	544	-	-	-
2170	Accounts payable	508,725	5	764,460	8
2200	Other payables (note 6(m))	132,340	2	96,000	1
2280	Current lease liabilities (note 6(n))	2,227	-	3,818	-
2399	Other current liabilities	2,076	-	2,156	-
	Total current liabilities	1,995,912	21	2,051,434	21
Non-Current liabilities:
2570	Deferred tax liabilities (note 6(p))	173,509	2	173,548	2
2580	Non-current lease liabilities (note 6(n))	5,667	-	6,919	-
2640	Net defined benefit liabilities, non-current (note 6(o))	27,059	-	37,657	-
	Total non-current liabilities	206,235	2	218,124	2
	Total liabilities	2,202,147	23	2,269,558	23
Equity (note 6(q)):
3100	Capital stock	5,278,698	55	5,278,698	55
3200	Capital surplus	129,839	1	129,663	1
	Retained earnings:
3310	Legal reserve	639,287	7	639,287	7
3320	Special reserve	8,811	-	8,811	-
3350	Unappropriated retained earnings	(677,078)	(7)	44,872	-
		(28,980)	-	692,970	7
3400	Other equity	2,020,980	21	1,290,470	14
	Total equity	7,400,537	77	7,391,801	77
Total liabilities and equity		$ 9,602,684	100	9,661,359	100

See accompanying notes to financial statements.

(English Translation of Financial Statements Originally Issued in Chinese)

TAIWAN STYRENE MONOMER CORPORATION

Statements of Comprehensive Income

For the years ended December 31, 2025 and 2024

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

	2025		2024
		Amount	%	Amount	%
4000	Operating revenue (note 6(s))	$ 8,477,879	100	11,243,294	100
5000	Operating costs (notes 6(d), (h), (i), (j), (n), (o), (u) and 7)	9,096,050	107	11,653,246	104
	Gross loss from operations	(618,171)	(7)	(409,952)	(4)
	Operating expenses (notes 6(c), (h), (i), (j), (n), (o), (u) and 7):
6100	Selling expenses	54,389	1	66,229	1
6200	Administrative expenses	76,623	1	88,679	1
6450	Expected credit impairment loss	23	-	9	-
		131,035	2	154,917	2
	Operating losses	(749,206)	(9)	(564,869)	(6)
	Non-operating income and expenses (notes 6(f), (g), (i), (n), (t) and 7):
7100	Interest income	4,066	-	6,939	-
7010	Other income	16,741	-	17,962	-
7020	Other gains and losses	7,673	-	111,101	1
7050	Finance costs	(22,973)	-	(19,061)	-
7070	Share of loss of subsidiaries, associates and joint ventures accounted for using equity method	(23,884)	-	(32,821)	-
		(18,377)	-	84,120	1
9900	Loss before tax	(767,583)	(9)	(480,749)	(5)
7950	Income tax benefits (note 6(p))	42,967	1	99,903	1
	Net loss	(724,616)	(8)	(380,846)	(4)
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	7,188	-	958	-
8316	Unrealized gains from investments in equity instruments measured at fair value through other comprehensive income	297,859	4	277,855	2
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	686,070	8	472,937	4
8349	Less: Income tax related to components of other comprehensive income that will not be reclassified to profit or loss	1,438	-	192	-
	Components of other comprehensive income that will not be reclassified to profit or loss	989,679	12	751,558	6
8360	Components of other comprehensive income (loss) that will be reclassified to profit or loss
8361	Exchange differences on translation	(561)	-	876	-
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	(15,927)	-	38,848	-
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	(16,488)	-	39,724	-
8300	Other comprehensive income	973,191	12	791,282	6
8500	Comprehensive income	$ 248,575	4	410,436	2
	Loss per share (note 6(r))
	Basic loss per share	$ (1.37)		(0.72)
	Diluted loss per share	$ (1.37)		(0.72)

See accompanying notes to financial statements.

(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, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

	Common stock	Capital surplus	Retained earnings				Other equity interest			Total equity
			Legal reserve	Special reserve	Unappropriated retained earnings	Total	Exchange differences on translation of foreign financial statements	Unrealized gains (losses) on financial assets measured at fair value through other comprehensive income	Total
Balance at January 1, 2024	$ 5,278,698	75,728	639,287	223,663	(45,013)	817,937	(8,216)	763,338	755,122	6,927,485
Appropriation and distribution of retained earnings: Reversal of special reserve	-	-	-	(214,852)	214,852	-	-	-	-	-
Changes in equity of associates and joint ventures accounted for using equity method	-	1,070	-	-	(55)	(55)	-	-	-	1,015
Associates disposal of investments in equity instruments designated at fair value through other comprehensive income	-	-	-	-	254,447	254,447	-	(254,447)	(254,447)	-
Changes in ownership interests in subsidiaries	-	52,865	-	-	-	-	-	-	-	52,865
Net loss	-	-	-	-	(380,846)	(380,846)	-	-	-	(380,846)
Other comprehensive income	-	-	-	-	1,487	1,487	39,724	750,071	789,795	791,282
Total comprehensive income	-	-	-	-	(379,359)	(379,359)	39,724	750,071	789,795	410,436
Balance at December 31, 2024	5,278,698	129,663	639,287	8,811	44,872	692,970	31,508	1,258,962	1,290,470	7,391,801
Changes in equity of associates and joint ventures accounted for using equity method	-	(5,343)	-	-	(104,998)	(104,998)	(1,544)	(133,473)	(135,017)	(245,358)
Disposal of investments in equity instruments designated at fair value through other comprehensive income	-	-	-	-	(2,824)	(2,824)	-	2,824	2,824	-
Associates disposal of investments in equity instruments designated at fair value through other comprehensive income	-	-	-	-	104,189	104,189	-	(104,189)	(104,189)	-
Recovery of expired unclaimed dividends	-	5,519	-	-	-	-	-	-	-	5,519
Net loss	-	-	-	-	(724,616)	(724,616)	-	-	-	(724,616)
Other comprehensive income	-	-	-	-	6,299	6,299	(16,488)	983,380	966,892	973,191
Total comprehensive income	-	-	-	-	(718,317)	(718,317)	(16,488)	983,380	966,892	248,575
Balance at December 31, 2025	$ 5,278,698	129,839	639,287	8,811	(677,078)	(28,980)	13,476	2,007,504	2,020,980	7,400,537

See accompanying notes to financial statements.

(English Translation of Financial Statements Originally Issued in Chinese)

TAIWAN STYRENE MONOMER CORPORATION

Statements of Cash Flows

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

	2025	2024
Cash flows from operating activities:
Loss before tax	$ (767,583)	(480,749)
Adjustments:
Adjustments to reconcile profit loss
Depreciation expense	242,378	248,566
Amortization expense	1,237	1,665
Expected credit impairment loss	23	9
Interest expense	22,973	19,061
Interest income	(4,066)	(6,939)
Dividend income	(10,195)	(15,140)
Share of loss of subsidiaries, associates and joint ventures accounted for using equity method	23,884	32,821
Property, plant and equipment transferred to expense	25	-
Gain on disposal of investments	(1,647)	-
Impairment loss (reversal) on non-financial assets	43	(650)
Gain on lease modification	(27)	(27)
Gain from recovery in value of inventories	(2,150)	(45,456)
Total adjustments to reconcile loss	272,478	233,910
Changes in operating assets and liabilities:
Changes in operating assets:
Financial assets mandatorily measured at fair value through profit or loss	15,663	43,552
Accounts receivable	446,232	(181,175)
Other receivables	(295)	747
Inventories	157,430	320,753
Prepayments	(36,142)	20,218
Total changes in operating assets	582,888	204,095
Changes in operating liabilities:
Contract liabilities	544	(1,957)
Accounts payable	(255,735)	(235,484)
Other payables	35,263	10,175
Other current liabilities	(80)	(84)
Net defined benefit liabilities	(3,410)	(6,071)
Total changes in operating liabilities	(223,418)	(233,421)
Total changes in operating assets and liabilities	359,470	(29,326)
Cash flows used in operations	(135,635)	(276,165)
Interest received	3,920	7,066
Dividends received	10,195	15,140
Interest paid	(22,118)	(19,331)
Income taxes refunded	94	5,191
Net cash flows used in operating activities	(143,544)	(268,099)
Cash flows from investing activities:
Proceeds from disposal of financial assets at fair value through other comprehensive income	19	-
Proceeds from capital reduction of financial assets at fair value through other comprehensive income	1,402	3,475
Acquisition of investments accounted for using equity method	(10,593)	-
Proceeds from disposal of investments accounted for using equity method	1,966	-
Increase in prepayments for investments	(11,700)	-
Proceeds from capital reduction of investments accounted for using equity method	219,969	-
Acquisition of property, plant and equipment	(11,863)	(21,128)
Increase in refundable deposits	(100)	(15)
Decrease in refundable deposits	1,003	15
Decrease (increase) in other financial assets	20,000	(20,000)
Increase in prepayments for equipment	(1,051)	-
Dividends received	43,433	52,160
Net cash flows from investing activities	252,485	14,507
Cash flows from financing activities:
Increase in short-term borrowings	7,013,000	7,065,000
Decrease in short-term borrowings	(6,848,000)	(6,880,000)
Payment of lease liabilities	(3,845)	(5,088)
Recovery of expired unclaimed dividends	5,519	-
Net cash flows from financing activities	166,674	179,912
Net increase (decrease) in cash and cash equivalents	275,615	(73,680)
Cash and cash equivalents at beginning of period	91,828	165,508
Cash and cash equivalents at end of period	$ 367,443	91,828

See accompanying notes to financial statements.

(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, 2025 and 2024

(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 9, 2026.

(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, 2025:

Amendments to IAS21 “Lack of Exchangeability”

(b) The impact of IFRS Accounting Standards endorsed 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, 2026, would not have a significant impact on its financial statements:

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

(Continued)

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

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	Content of amendment	Effective date per IASB
IFRS 18 “Presentation and Disclosure in Financial Statements”	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.

• 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. | January 1, 2027
note: On September 25, 2025, the FSC issued a press release announcing that Taiwan will adopt IFRS 18 beginning in 2028. Entities that need to adopt the new standard earlier may do with the endorsement of the FSC. |

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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 19 “Subsidiaries without Public Accountability: Disclosures” and amendments to IFRS 19 “Subsidiaries without Public Accountability: Disclosures”
Amendments to IAS 21 “Translation to a Hyperinflationary Presentation Currency”

(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.

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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.

(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

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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.

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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 (e.g. financial assets held for trading and those that are managed and whose performance is evaluated on a fair value basis) are measured at FVTPL, including derivative financial assets 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).

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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 forward-looking 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;

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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.

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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 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.

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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.

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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

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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 lessee

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 in its assessment on whether it will exercise a purchase option; or

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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 modification

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 property 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 short-term 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. The Company recognizes lease payments received under operating leases as income on a straight-line basis over the lease term as part of lease income.

(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.

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TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

(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.

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. They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis. 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.

(Continued)

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

(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.

(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.

(Continued)

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognized immediately in profit or loss. The Group recognizes gains and losses on the settlement of a defined benefit plan when the settlement occurs.

(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.

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 reverse, using tax rates enacted or substantively enacted at the reporting date.

(Continued)

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

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.

(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, 2025.

(Continued)

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

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) Impairment of non-financial assets

In assessing impairment, the Company must rely on subjective judgments and use asset usage patterns to determine the fair value, independent cash flows, the useful life of assets, and possible future income and expenses of a specific asset group. Estimated changes brought by economic environment or corporate strategies may result in impairment or reversal of recognized impairment losses in the future.

(b) 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.

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.

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).

(Continued)

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

(6) Explanation of significant accounts

(a) Cash and cash equivalents

	December 31, 2025	December 31, 2024
Petty cash	$ 160	160
Deposits in bank	285,565	91,668
Time deposits due within three months	81,718	-
	$ 367,443	91,828

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

	December 31, 2025	December 31, 2024
Mandatorily measured at fair value through profit or loss:
Listed stocks	$ 79,725	95,388

(c) Accounts receivable

	December 31, 2025	December 31, 2024
Accounts receivable	$ 531,302	977,534
Less: loss allowance	(72)	(49)
	$ 531,230	977,485

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:

	December 31, 2025
	Gross carrying amount	Weighted-average loss rate	Loss allowance provision
Current	$ 526,689	0.005%	26
1 to 90 days past due	4,613	1%	46
	$ 531,302		72
	December 31, 2024
	Gross carrying amount	Weighted-average loss rate	Loss allowance provision
Current	$ 977,534	0.005%	49

(Continued)

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

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

	2025	2024
Beginning balance	$ 49	40
Impairment loss recognized	23	9
Ending balance	$ 72	49

For other credit risk information; please refer to note 6(v).

(d) Inventories

	December 31, 2025	December 31, 2024
Finished goods	$ 138,149	108,319
By-product	4,668	6,361
Semi-finished products	22,776	68,347
Work in progress	31,401	68,684
Raw materials	53,232	108,574
Supplies	49,723	94,944
	$ 299,949	455,229

In 2025 and 2024, inventories recognized as cost of sales amounted to $9,098,200 thousand and $11,698,702 thousand, respectively.

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

	2025	2024
Gain from recovery in value of inventories	$ (2,150)	(45,456)

None of the inventories of the Company was pledged as collateral on December 31, 2025 and 2024.

(e) Prepayments

	December 31, 2025	December 31, 2024
Office supplies	$ 107,028	105,809
Overpaid sales tax	85,217	72,737
Prepayment for investment	11,700	-
Others	7,347	9,154
	$ 211,292	187,700

(Continued)

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

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

	December 31, 2025	December 31, 2024
Equity investments:
Domestic non-listed stocks	$ 1,444,257	1,146,079
Foreign non-listed equity investments	86,612	88,352
	$ 1,530,869	1,234,431

(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 2025 and 2024, the dividends of $7,385 thousand and $12,109 thousand, respectively, related to equity investments at fair value through other comprehensive income held on the years then ended were recognized.

(ii) In July 2025, the Company determined to dispose its shares of Excellence Electronic Co., Ltd., which was classified as a non-current equity investment designated at FVOCI. The shares disposed had a fair value of $12 thousand and the Group realized a loss of $4 thousand, which was recognized as other comprehensive income, and thereafter, was reclassified to retained earnings.

(iii) In December 2025, the Company derecognized its share held in Vxis Technology Corp., as a result of the completion of the liquidation. The liquidation proceeds amounted to $7 thousand and the Company realized a loss of $2,820 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, 2025 and 2024.

(g) Investments accounted for using equity method

Investment accounted for using the equity method were follows:

	December 31, 2025	December 31, 2024
Subsidiaries	$ 1,607,228	1,797,385
Associates	2,524,910	2,187,541
	$ 4,132,138	3,984,926

(i) Subsidiaries

Please refer to the consolidated financial report for the years ended December 31, 2025.

(Continued)

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

(ii) Associates

Associates of the Company consisted of the following:

	December 31, 2025		December 31, 2024
	Amount	Share-holding (%)	Amount	Share-holding (%)
Grand Cathay Venture Capital Co., Ltd.	$ 518,815	25.00	588,585	25.00
Wonderland Enterprise Co., Ltd. (Note 1)	1,950,752	29.63	1,551,212	37.04
Functional Coating System Technologies Co., Ltd.	33,631	36.05	30,244	34.88
Universal Investment Limited	15,598	40.00	17,500	40.00
Hong Kang Shipping Co., Ltd. (Note 2)	6,114	35.00	-	-
	$ 2,524,910		2,187,541

Note 1: On September 24, 2025, Wonderland Enterprise Co., Ltd carried out a cash capital increase of NTD$200,000 thousand. The Group did not participate in the capital increase in proportion to its original shareholding, resulting in its ownership decreasing to 29.63%. Consequently, the Group reduced capital surplus by $7,815 thousand and retained earnings by $238,471 thousand, respectively, to reflect the decrease in ownership. In addition, previously recognized unrealized gains on financial assets measured at fair value through other comprehensive income and exchange differences related to the foreign operations were reclassified in proportion to the decrease. $133,473 thousand was reclassified to retained earnings and $1,544 thousand was reclassified to profit or loss.

Note 2: On August 12, 2025, the Group acquired 45% of the equity interest in Hung Kang Co., Ltd for $8,850 thousand and thereby obtained significant influence over the company. Subsequently, on December 15, 2025, the Company disposed of a 10% equity interest in Hung Kang Co., Ltd., resulting in a decrease in its shareholding to 35%. Relevant information regarding the disposal please refer note 7.

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.

	December 31, 2025	December 31, 2024
Current assets	$ 1,667,077	1,990,506
Non-current assets	436,486	391,301
Current liabilities	(28,306)	(27,467)
Net assets	$ 2,075,257	2,354,340

(Continued)

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

	2025	2024
Operating revenue	$ 198,397	205,083
Net loss	$ (27,574)	(128,893)
Other comprehensive income	(143,989)	(649,277)
Total comprehensive income	$ (171,563)	(778,170)
	2025	2024
Beginning shares of net assets of associates	$ 588,585	821,087
Comprehensive income attributable to the Company	(42,890)	(194,542)
Dividends received from associates	(26,880)	(37,960)
Ending shares of net assets of associates	$ 518,815	588,585

2) Wonderland Enterprise Co., Ltd.

	December 31, 2025	December 31, 2024
Current assets	$ 43,194	51,029
Non-current assets	6,564,247	4,195,016
Current liabilities	(23,429)	(57,710)
Non-current liabilities	(216)	(60)
Net assets	$ 6,583,796	4,188,275
	2025	2024
Operating revenue	$ -	5,700
Net loss	$ (144,030)	(52,591)
Other comprehensive income	2,231,207	1,678,366
Total comprehensive income	$ 2,087,177	1,625,775
	2025	2024
Beginning shares of net assets of associates	$ 1,551,212	948,059
Comprehensive income attributable to the Company	643,354	602,138
Changes in ownership of interests in investments accounted for using equity method	(243,814)	1,015
Ending shares of net assets of associates	$ 1,950,752	1,551,212

(Continued)

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

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

	2025	2024
Attributable to the Company:
Net income	$ (151)	3,600
Other comprehensive income	(800)	876
Total comprehensive income	$ (951)	4,476

None of the investments using equity method of the Company was pledged as collateral as of December 31, 2025 and 2024.

(h) Property, plant and equipment

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

	Land	Land improvements	Buildings and structures	Machinery and equipment	Transportation equipment	Other equipment	Construction in progress	Total
Cost:
Balance as of January 1, 2025	$ 812,199	8,462	226,405	7,493,505	1,655	626,623	4,942	9,173,791
Additions	-	-	-	6,519	850	2,109	2,607	12,085
Disposals	-	-	-	(27,091)	-	(420)	-	(27,511)
Reclassification	-	-	-	6,311	-	991	(4,942)	2,360
Balance as of December 31, 2025	$ 812,199	8,462	226,405	7,479,244	2,505	629,303	2,687	9,160,725
Balance as of January 1, 2024	$ 812,199	8,462	226,405	7,528,153	1,655	620,661	64,019	9,261,554
Additions	-	-	-	7,381	-	5,991	2,730	16,102
Disposals	-	-	-	(88,140)	-	(29)	-	(88,169)
Reclassification	-	-	-	46,111	-	-	(61,807)	(15,696)
Balance as of December 31, 2024	$ 812,199	8,462	226,405	7,493,505	1,655	626,623	4,942	9,173,791
Accumulated depreciation:
Balance as of January 1, 2025	$ -	8,462	131,244	6,458,444	1,655	474,622	-	7,074,427
Depreciation	-	-	6,081	198,291	85	34,058	-	238,515
Disposals	-	-	-	(27,091)	-	(420)	-	(27,511)
Balance as of December 31, 2025	$ -	8,462	137,325	6,629,644	1,740	508,260	-	7,285,431
Balance as of January 1, 2024	$ -	8,446	125,163	6,345,778	1,655	438,360	-	6,919,402
Depreciation	-	16	6,081	200,806	-	36,291	-	243,194
Disposals	-	-	-	(88,140)	-	(29)	-	(88,169)
Balance as of December 31, 2024	$ -	8,462	131,244	6,458,444	1,655	474,622	-	7,074,427
Carrying value:
Balance as of December 31, 2025	$ 812,199	-	89,080	849,600	765	121,043	2,607	1,875,294
Balance as of January 1, 2024	$ 812,199	16	101,242	1,182,375	-	182,301	64,019	2,342,152
Balance as of December 31, 2024	$ 812,199	-	95,161	1,035,061	-	152,001	4,942	2,099,364

As of December 31, 2025 and 2024, the collateral for property, plant and equipment, please refer to note 8.

(Continued)

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:

	Land	Transportation equipment	Office equipment	Total
Cost:
Balance as of January 1, 2025	$ 4,412	7,660	9,340	21,412
Lease modification	1,029	-	-	1,029
Write-off	-	(6,874)	-	(6,874)
Balance as of December 31, 2025	$ 5,441	786	9,340	15,567
Balance as of January 1, 2024	$ 4,290	7,660	14,154	26,104
Lease modification	122	-	-	122
Write-off	-	-	(4,814)	(4,814)
Balance as of December 31, 2024	$ 4,412	7,660	9,340	21,412
Accumulated depreciation:
Balance as of January 1, 2025	$ 752	5,885	3,673	10,310
Depreciation	293	1,702	1,868	3,863
Write-off	-	(6,874)	-	(6,874)
Balance as of December 31, 2025	$ 1,045	713	5,541	7,299
Balance as of January 1, 2024	$ 523	3,332	5,897	9,752
Depreciation	229	2,553	2,590	5,372
Write-off	-	-	(4,814)	(4,814)
Balance as of December 31, 2024	$ 752	5,885	3,673	10,310
Carrying amount:
Balance as of December 31, 2025	$ 4,396	73	3,799	8,268
Balance as of January 1, 2024	$ 3,767	4,328	8,257	16,352
Balance as of December 31, 2024	$ 3,660	1,775	5,667	11,102

(j) Intangible assets

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

	Technical royalty	Computer software	Total
Cost:
Balance as of January 1, 2025	$ 14,623	2,635	17,258
Write-off	-	(915)	(915)
Balance as of December 31, 2025	$ 14,623	1,720	16,343
Balance as of January 1, 2024	$ 14,623	2,635	17,258
Balance as of December 31, 2024 (Balance as of January 1, 2024)	$ 14,623	2,635	17,258
Accumulated amortization:
Balance as of January 1, 2025	$ 11,374	2,153	13,527
Amortization	975	262	1,237
Write-off	-	(915)	(915)
Balance as of December 31, 2025	$ 12,349	1,500	13,849

(Continued)

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

	Technical royalty	Computer software	Total
Balance as of January 1, 2024	$ 10,399	1,463	11,862
Amortization	975	690	1,665
Balance as of December 31, 2024	$ 11,374	2,153	13,527
Carrying value:
Balance as of December 31, 2025	$ 2,274	220	2,494
Balance as of January 1, 2024	$ 4,224	1,172	5,396
Balance as of December 31, 2024	$ 3,249	482	3,731

(k) Other non-current assets

	December 31, 2025	December 31, 2024
Long-term prepaid expenses	$ 39,832	19,735

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:

	December 31, 2025	December 31, 2024
Secured bank loans	$ 800,000	785,000
Unsecured bank loans	550,000	400,000
Total	$ 1,350,000	1,185,000
Unused short-term credit lines	$ 648,000	652,007
Range of interest rate	1.87%~2%	1.85%~2.055%

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

(m) Other payables

	December 31, 2025	December 31, 2024
Securities settlement payable	$ 34,549	-
Accrued payroll	21,256	22,615
Utilities payable	18,617	21,820
Compensated absences	14,095	14,500
Payables on equipment	4,202	3,980
Dividends payable	452	452
Other payables – other	39,169	32,633
Total	$ 132,340	96,000

(Continued)

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

(n) Lease liabilities

Lease liabilities of the Company were as follows:

	December 31, 2025	December 31, 2024
Current	$ 2,227	3,818
Non-current	$ 5,667	6,919

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

The amounts recognized in profit or loss were as follows:

	2025	2024
Interest on lease liabilities	$ 260	291
Expenses relating to short-term leases	$ 517	260
Expenses relating to leases of low-value assets, excluding short-term leases of low-value assets	$ 341	348

The amounts recognized in the statement of cash flows was as follows:

	2025	2024
Total cash outflow for leases	$ 4,963	5,987

(o) Employee benefits

(i) Defined benefit plans

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

	December 31, 2025	December 31, 2024
Present value of defined benefit obligations	$ 129,938	151,990
Fair value of plan assets	(102,879)	(114,333)
Net defined benefit liabilities	$ 27,059	37,657

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)

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 $102,879 thousand as of December 31, 2025. 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:

	2025	2024
Defined benefit obligations at January 1	$ 151,990	192,437
Current service costs and interest cost	2,980	2,809
Remeasurements of defined benefit liabilities
—Actuarial gains and losses arising from financial assumptions	633	(1,915)
—Actuarial gains and losses arising from experience adjustments	1,233	15,023
Benefits paid	(26,898)	(56,364)
Defined benefit obligations at December 31	$ 129,938	151,990

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:

	2025	2024
Fair value of plan assets at January 1	$ 114,333	147,751
Interests income	1,821	1,570
Remeasurements of defined benefit assets
—Return on plan assets (excluding interest income)	9,054	14,066
Contributions	4,569	1,394
Benefits paid	(26,898)	(50,448)
Fair value of plan assets at December 31	$ 102,879	114,333

(Continued)

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:

	2025	2024
Current service costs	$ 700	885
Net interest on defined benefit liabilities	459	354
	$ 1,159	1,239
	2025	2024
Operating cost	$ 871	915
Operating expenses	288	324
	$ 1,159	1,239

5) Actuarial assumptions

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

	December 31, 2025	December 31, 2024
Discount rate	1.30%	1.50%
Future salary increase rate	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 $14,346 thousand.

The weighted-average lifetime of the defined benefit plans is 2.8 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:

	Influence of defined benefit obligation
	Increase	Decrease
December 31, 2025
Discount rate (changed by 0.25%)	$ (790)	804
Future salary increase rate (changed by 1%)	3,257	(3,081)
December 31, 2024
Discount rate (changed by 0.25%)	(930)	948
Future salary increase rate (changed by 1%)	3,848	(3,631)

(Continued)

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 $8,216 thousand and $8,199 thousand for the years ended December 31, 2025 and 2024, respectively.

(p) Income taxes

(i) Income tax benefits

The components of income tax in the years ended 2025 and 2024 were as follows:

	2025	2024
Current income tax benefits:
Adjustment for prior periods	$ -	(6)
Deferred income tax expense (benefits):
Origination and reversal of temporary difference	(42,984)	(99,897)
Adjustment for prior periods	17	-
	(42,967)	(99,897)
Income tax benefits	$ (42,967)	(99,903)

The amount of income tax recognized in other comprehensive income for 2025 and 2024 was as follows:

	2025	2024
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit plans	$ 1,438	192

(Continued)

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

Reconciliation of income tax and loss before tax for 2025 and 2024 is as follows:

	2025	2024
Loss before tax	$ (767,583)	(480,749)
Income tax using the Company’s domestic tax rate	$ (153,517)	(96,150)
Gains from securities transactions	(2,986)	(13,335)
Non-deductible expenses	66	96
Tax-exempt income	(2,057)	(9,348)
Investment loss	4,777	6,564
Non-deductible losses	10,744	-
Current-year losses for which no deferred tax asset was recognized	99,989	12,276
Adjustment for prior periods	17	(6)
Total	$ (42,967)	(99,903)

(ii) Deferred tax assets and liabilities

1) Unrecognized deferred income tax assets

The Group’s unrecognized deferred income tax assets were composed of the following items:

	December 31, 2025	December 31, 2024
Loss carry forward	$ 99,989	-

Regarding the deductible temporary differences from investment tax credit, the deferred tax assets have not been recognized in respect of these items because it is not probable that the future taxable gain on disposal of securities will be available against which the Group can utilize the benefits therefrom. The ROC Income Tax Act allows net losses, as assessed by the tax authorities, to offset taxable income over a period of ten years for local tax reporting purposes. Deferred tax assets were not recognized, as management determined that it is not probable that there will be sufficient taxable gains in the future.

(Continued)

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

As of December 31, 2025 the net losses that have not been recognized as deferred tax assets and the expiration years were as follows:

Year of loss	Year of expiry	Unused amount
2025	2035	$ 499,945

2) Recognized deferred tax assets and liabilities

Movements of recognized deferred tax assets and liabilities for the years ended December 31, 2025 and 2024 were as follows:

Deferred tax assets:

	Allowance for inventory write-down	Defined benefit pension plans	Accumulated compensated absences	Tax loss carry forward	Others	Total
Balance at January 1, 2025	$ 3,826	7,531	2,622	434,338	-	448,317
Recognized in profit or loss	(430)	(682)	(71)	44,105	6	42,928
Recognized in other comprehensive income	-	(1,438)	-	-	-	(1,438)
Balance at December 31, 2025	$ 3,396	5,411	2,551	478,443	6	489,807
Balance at January 1, 2024	$ 12,917	8,937	2,755	323,841	123	348,573
Recognized in profit or loss	(9,091)	(1,214)	(133)	110,497	(123)	99,936
Recognized in other comprehensive income	-	(192)	-	-	-	(192)
Balance at December 31, 2024	$ 3,826	7,531	2,622	434,338	-	448,317

Deferred tax liabilities:

	Land value increment tax	Other	Total
Balance at January 1, 2025	$ 173,509	39	173,548
Recognized in profit or loss	-	(39)	(39)
Balance at December 31, 2025	$ 173,509	-	173,509
Balance at January 1, 2024	$ 173,509	-	173,509
Recognized in profit or loss	-	39	39
Balance at December 31, 2024	$ 173,509	39	173,548

The Company's income tax return for the year 2023 had been examined by the tax authorities.

(Continued)

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

(q) Capital and other equity

(i) Ordinary shares

As of December 31, 2025 and 2024, the number of authorized ordinary shares were $9,000,000 thousand shares with par value of $10 per share. As of December 31, 2025 and 2024, 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:

	December 31, 2025	December 31, 2024
Difference arising from subsidiary's share price and its carrying value	$ 8,953	8,953
Changes in ownership interests in subsidiaries	79,165	79,165
Changes in equity of investments in associates using equity method	2,472	7,815
Treasury share transactions	4,430	4,430
Donation from shareholders	13	13
Overdue dividends not received by shareholders	34,806	29,287
Total	$ 129,839	129,663

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 42,957 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.

(Continued)

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 28, 2025, the shareholders' meeting resolved not to distribute the 2024 earnings. On May 31, 2024, the shareholders' meeting resolved the distribution of earnings for 2023.

(Continued)

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:

	Exchange differences on translation of foreign financial statements	Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income	Total
Balance as of January 1, 2025	$ 31,508	1,258,962	1,290,470
Exchange differences on foreign operations	(561)	-	(561)
Exchange differences on subsidiaries, associates and joint ventures accounted for using equity method	(15,927)	-	(15,927)
Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income	-	297,859	297,859
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	-	685,521	685,521
Cumulative losses (gains) reclassified to retained earnings on disposal of investments in equity instruments designated at fair value through other comprehensive income	-	2,824	2,824
Cumulative losses (gains) reclassified to retained earnings on associates disposal of investments in equity instruments designated at fair value through other comprehensive income	-	(104,189)	(104,189)
Changes in ownership interests in investments accounted for using equity method	(1,544)	(133,473)	(135,017)
Balance as of December 31, 2025	$ 13,476	2,007,504	2,020,980
Balance as of January 1, 2024	$ (8,216)	763,338	755,122
Exchange differences on foreign operations	876	-	876
Exchange differences on subsidiaries, associates and joint ventures accounted for using equity method	38,848	-	38,848
Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income	-	277,855	277,855
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	-	472,216	472,216
Cumulative losses (gains) reclassified to retained earnings on associates disposal of investments in equity instruments designated at fair value through other comprehensive income	-	(254,447)	(254,447)
Balance as of December 31, 2024	$ 31,508	1,258,962	1,290,470

(Continued)

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

	2025	2024
Loss attributable to the Company	$ (724,616)	(380,846)
Weighted-average number of ordinary shares outstanding	527,870	527,870
Loss per share (NTD)	$ (1.37)	(0.72)

There was no dilutive potential ordinary shares of the Company.

(s) Revenue from contracts with customers

(i) Disaggregation of revenue

	2025	2024
Primary geographical markets:
Asia	$ 8,436,056	11,219,870
America	18,192	10,515
Europe	23,631	12,909
	$ 8,477,879	11,243,294
Major products/services lines:
Commodity sales revenue	$ 8,477,879	11,243,294

(ii) Contract balances

	December 31, 2025	December 31, 2024	January 1, 2024
Contract liabilities-unearned sales revenue	$ 544	-	1,957

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

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

(Continued)

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:

	2025	2024
Rental income	$ 139	120
Dividend income	10,195	15,140
Claim income	5,398	-
Others	1,009	2,702
Total	$ 16,741	17,962

(ii) Other gains and losses

	2025	2024
Foreign exchange (losses) gains	$ (8,890)	6,723
Gains on disposals of investments	1,647	-
Gains on financial assets at fair value through profit or loss	14,932	103,701
Impairment (loss) reversal	(43)	650
Gains on lease modification	27	27
Total	$ 7,673	111,101

(iii) Finance costs

	2025	2024
Interest expense	$ 22,973	19,061

(u) Remunerations to employees, directors and supervisors

On May 28, 2025, the Company resolved at the shareholders’ meeting to amend its Articles of Incorporation. According to the amended Articles, if the Company has profit in a given fiscal year, the profit shall first be used to offset any accumulated losses incurred by the Company. The remainder, if any, shall be allocated as follows: 1% to 5% as employee remuneration (including a minimum of 20% to those base-level employees), and a maximum of 2.5% as remuneration for directors and supervisors. Prior to the amendment, the Articles of Incorporation stipulated that, if the Company had profit in a given fiscal year, the profit shall first be used to offset any accumulated losses incurred by the Company. The remainder, if any, 1% to 5% should be allocated as employee remuneration and no more than 2.5% as remuneration for directors.

(Continued)

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

For the years ended December 31, 2025 and 2024, there was no appropriation of remunerations to employees and directors because of net loss before tax. 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. 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.

(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, 2025 and 2024, the Company reviewed the concentrations of credit risk arising from the major top ten customers, and it was 94% 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.

	Carrying amount	Contractual cash flows	Within 1 year	1-2 years	2-5 years	Over 5 years
December 31, 2025
Non-derivative financial liabilities
Short-term borrowings	$ 1,350,000	1,354,795	1,354,795	-	-	-
Accounts payable	636,864	636,864	636,864	-	-	-
Lease liabilities	7,894	8,960	2,417	1,832	1,087	3,624
	$ 1,994,758	2,000,619	1,994,076	1,832	1,087	3,624

(Continued)

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

	Carrying amount	Contractual cash flows	Within 1 year	1-2 years	2-5 years	Over 5 years
December 31, 2024
Non-derivative financial liabilities
Short-term borrowings	$ 1,185,000	1,187,085	1,187,085	-	-	-
Accounts payable	856,480	856,480	856,480	-	-	-
Others	10,737	11,382	4,000	2,312	2,241	2,829
	$ 2,052,217	2,054,947	2,047,565	2,312	2,241	2,829

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

(iii) Market risk

1) Currency risk

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

	December 31, 2025			December 31, 2024
	Foreign currency	Exchange rate	NTD	Foreign currency	Exchange rate	NTD
Financial assets
Monetary items
USD	$ 8,874	31.430	278,910	8,762	32.785	287,262
Financial liabilities
Monetary items
USD	4,294	31.430	134,960	6,351	32.785	208,218

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, 2025 and 2024, would have increased (decreased) net loss before tax by $1,440 thousand and $790 thousand for the years ended December 31, 2025 and 2024, respectively. The analysis is performed on the same basis.

For years 2025 and 2024, foreign exchange gain (including realized and unrealized portions) amounted to $8,890 thousand and $6,723 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.

(Continued)

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

If the interest rate had increased/decreased by 1% the Company loss before tax would have decreased/increased by $13,500 thousand and $11,850 thousand for the years ended December 31, 2025 and 2024, respectively, with all over variable factors remaining constant. This is mainly due to Company’s loan at variable rates.

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:

	2025		2024
Prices of securities at the reporting date	Other comprehensive income after tax	Net income	Other comprehensive income after tax	Net income
Increasing 1%	$ 15,309	797	12,344	954
Decreasing 1%	$ (15,309)	(797)	(12,344)	(954)

(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 a recurring basis. 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, short-term borrowings, accounts payable, other payables, long-term borrowings, deposits receivable and lease liabilities, disclosure of fair value information is not required:

	December 31, 2025
	Book value	Fair value
		Level 1	Level 2	Level 3	Total
Financial assets at fair value through profit or loss:
Listed stocks	$ 79,725	79,725	-	-	79,725
Financial assets at fair value through other comprehensive income:
Domestic and foreign non-listed stocks	1,530,869	-	-	1,530,869	1,530,869
Total	$ 1,610,594	79,725	-	1,530,869	1,610,594
Financial liabilities measured at amortized cost:

(Continued)

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

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

2) Valuation techniques for financial instruments measured at fair value

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 the counterparty. 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)

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

3) Transfers between Level 1 and Level 2

There is no transfer for the years ended December 31, 2025 and 2024.

4) Reconciliation of Level 3 fair values

	Fair value through other comprehensive income
	Unquoted equity instruments
Opening balance, January 1, 2025	$ 1,234,431
Total gains and losses recognized
Other comprehensive income	297,859
Capital reduction by cash	(1,402)
Disposals	(19)
Ending Balance, December 31, 2025	$ 1,530,869
Opening balance, January 1, 2024	$ 960,051
Total gains and losses recognized
Other comprehensive income	277,855
Capital reduction by cash	(3,475)
Ending Balance, December 31, 2024	$ 1,234,431

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, 2025 and 2024 were as follows:

	2025	2024
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”	$ 297,859	277,855

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 are independent of each other and therefore have no interrelationship

(Continued)

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

Quantified information of significant unobservable inputs was as follows:

Item	Valuation technique	Significant unobservable inputs	Inter-relationship between significant unobservable inputs and fair value measurement
Financial assets at fair value through other comprehensive income - equity investments without an active market	Market approach (Comparable listed company method)	Price to book ratio (0.86~1.58 and 1.12~1.90 as of December 31, 2025 and 2024, respectively)	The fair value would increase if price to book ratio increase
		Lack of market liquidity discount (10%~35% and 10%~30% as of December 31, 2025 and 2024, respectively)	The fair value would decrease if lack of market liquidity discount increase
	Net asset value method	Net asset value	The estimated fair value would increase if the net asset value were higher

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:

	Inputs	Increase/Decrease	Other comprehensive income
			Favorable	Unfavorable
December 31, 2025
Financial assets at fair value through other comprehensive income	Price to book ratio	10%	3,400	(3,400)
	Liquidity discount	10%	56,484	(56,484)
December 31, 2024
Financial assets at fair value through other comprehensive income	Price to book ratio	10%	4,039	(4,039)
	Liquidity discount	10%	32,736	(32,736)

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)

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)

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 that 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)

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 plans the capital which needed 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, 2025 and 2024 are as follows:

(i) The Company had unpaid $4,202 thousand and $3,980 thousand for the acquisition of property, plant, and equipment for the years 2025 and 2024, respectively. Please refer to Note 6(m) for details.

(ii) Reconciliation of liabilities arising from financing activities in 2025 and 2024 were as follows:

	January 1, 2025	Cash flows	Non-cash changes		December 31, 2025
			Lease modification	Lease additions
Lease liabilities	$ 10,737	(3,845)	1,002	-	7,894
	January 1, 2024	Cash flows	Non-cash changes		December 31, 2024
			Lease modification	Lease additions
Lease liabilities	$ 15,730	(5,088)	95	-	10,737

(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)

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 Consulting Co., Ltd.	Subsidiary
Kun Shan Jia-An Technology Education Consulting Co., Ltd.	Subsidiary
Universal Investments Limited	Affiliated company
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:

Accounts	Types of related parties	December 31, 2025	December 31, 2024
Other receivables	Eastern Broadcasting Co., Ltd.	$ 83	83

(ii) Rental income

	2025	2024
Other subsidiaries	$ 48	48

(iii) Operating expense

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

	2025	2024
Yangmingshan Tien Lai Resort & SPA	$ 23	261
Other subsidiaries	171	171
	$ 194	432

(iv) Asset transactions

1) Disposal of financial assets

The summary of the Company’s disposals of financial assets to related parties is as follows:

Related party category	Account title	2025
		Number of shares traded	Underlying asset	Proceeds from disposal	Gain on disposal
Universal Investments Limited	Investments accounted for using the equity method	200,000	Hung Kang Co., Ltd.	$ 1,966	103

(Continued)

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

(v) Operating costs

Yuan-Shin Materials Technology Co., Ltd.
| 2025 | 2024 |
| --- | --- |
| $ - | 130 |

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

	2025	2024
Short-term employee benefits	$ 27,067	27,504
Post-employment benefits	743	748
	$ 27,810	28,252

(8) Assets pledged as security:

The carrying amounts of pledged assets were as follows:

Assets pledged as security	Liabilities secured by pledge	December 31, 2025	December 31, 2024
Property, plant and equipment	Short-term borrowings	$ 781,465	786,685

(9) Commitments and contingencies:

(a) Letter of credit issued but not expired

	December 31, 2025	December 31, 2024
Letter of credit outstanding for the import of raw materials	$ 752,000	1,472,993

(10) Losses due to major disasters: None.

(11) Subsequent events: None.

(Continued)

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

(12) Other:

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

| By Function
By item | 2025 | | | 2024 | | |
| --- | --- | --- | --- | --- | --- | --- |
| | Operating cost | Operating expense | Total | Operating cost | Operating expense | Total |
| Employee benefits | | | | | | |
| Salary | 137,524 | 43,257 | 180,781 | 142,461 | 45,676 | 188,137 |
| Labor and health insurance | 13,653 | 3,238 | 16,891 | 13,411 | 3,330 | 16,741 |
| Pension | 7,298 | 2,077 | 9,375 | 7,245 | 2,193 | 9,438 |
| Remuneration of directors | - | 4,680 | 4,680 | - | 4,506 | 4,506 |
| Others | 9,192 | 8,568 | 17,760 | 9,520 | 13,363 | 22,883 |
| Depreciation | 239,166 | 3,212 | 242,378 | 244,474 | 4,092 | 248,566 |
| Amortization | 1,237 | - | 1,237 | 1,510 | 155 | 1,665 |

The information about employees and salary of the Company for the years ended December 31, 2025 and 2024 are as below:

	2025	2024
Employees	197	201
Non-employee directors	10	10
Average employee benefits	$ 1,202	1,242
Average salary	$ 967	985
Average salary adjustment	(1.83)%	6.03%
Remuneration of supervisors	$ -	-

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.

(Continued)

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

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, remuneration 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".

(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)

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, 2025:

(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):

Name of holder	Category and name of security	Relationship with the security issuer	Account	Ending balance
				Shares	Carrying value	Percentage of ownership (%)	Fair value
The Company	Test Research Inc.	-	Current financial assets at fair value through profit or loss	155,000	29,682	0.07 %	29,682
The Company	Hon Hai Precision Industry Co., Ltd.	-	Current financial assets at fair value through profit or loss	160,000	36,880	- %	36,880
The Company	Global Investment Holding Co., Ltd.	-	Non-current investment in equity instrument at FVOCI	10,233,608	99,270	6.03 %	99,270
The Company	Yuan-Jie Investment Co., Ltd.	-	Non-current investment in equity instrument at FVOCI	21,000,000	576,139	19.09 %	576,139
The Company	Yu-Jie Investment Co., Ltd.	-	Non-current investment in equity instrument at FVOCI	21,320,000	679,985	19.38 %	679,985
YSIC Ltd.	Global Unichip Corp.	-	Current financial assets at fair value through profit or loss	20,000	42,500	0.01 %	42,500
YSIC Ltd.	Asia Vital Components Co., Ltd.	-	Current financial assets at fair value through profit or loss	20,000	30,200	0.01 %	30,200
YSIC Ltd.	Cjw International Co., Ltd.	-	Non-current financial assets at fair value through profit or loss	312,212	3,528	0.47 %	3,528
Grand Capital Co., Ltd.	Deng Yun Co., Ltd.	-	Non-current investment in equity instrument at FVOCI	3,082,453	306,309	16.10 %	306,309

(iv) Information regarding related-parties purchases and/or sales exceeding NTD100 million or $20\%$ of the Company's paid-in capital: None
(v) Information regarding receivables from related-parties exceeding NTD100 million or $20\%$ of the Company's paid-in capital: None

(b) Information on investees:

The following is the information on investees for the year ended December 31, 2025 (excluding information on investees in Mainland China):

(In Thousands of New Taiwan Dollars)

Name of invester	Name of investee	Location	Main businesses and products	Original investment amount		Balance as of December 31, 2025			Net income (losses) of investee	Share of profit/(losses of investee	Note
				December 31, 2025	December 31, 2024	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 %	518,815	(27,574)	(4,895)
The Company	Wonderland Enterprise Co., Ltd.	Taiwan	General investment business	325,230	325,230	29,629,597	29.63 %	1,950,752	(144,030)	(43,059)
The Company	Functional Coating System Technologies Co., Ltd.	Taiwan	OEM of Semiconductor and components conformal coating	30,244	28,500	1,802,325	36.05 %	33,631	5,191	1,824
The Company	Universal Investments Limited	British Cayman Islands	Real estate investment business	17,273	17,273	80	40.00 %	15,598	(2,196)	(1,102)
The Company	Hong Kong Co., Ltd.	Taiwan	Maritime Transport Industry	6,883	-	700,000	35.00 %	6,114	(4,670)	(873)
The Company	YSIC Ltd.	Taiwan	General investment, residential building and industrial plant development rental business	1,418,200	1,638,169	50,499,923	99.99 %	859,315	22,158	22,155	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 %	55,079	3,350	3,350	Subsidiary
The Company	Yangmingshan Tian Lai Resort & SPA	Taiwan	General hotel industry	630,555	630,555	25,865,618	65.07 %	692,834	4,653	714	Subsidiary
YSIC Ltd.	Kun Shan International Ltd.	Seychelles	General investment business	-	-	100,000	100.00 %	44,182	6,299	6,299	Subsidiary
YSIC Ltd.	Grand Capital Co., Ltd.	Seychelles	General investment business	90,182	90,182	2,698,002	100.00 %	307,972	130	130	Subsidiary
YSIC Ltd.	Yangmingshan Tian Lai Resort & SPA	Taiwan	General hotel industry	110,836	110,836	4,807,774	12.10 %	118,728	4,653	203	Subsidiary
YSIC Ltd.	Tien Lai Co., Ltd.	Taiwan	Pipe Lines Construction	5,000	5,000	267,000	19.78 %	1,934	1,254	240
Yangmingshan Tian Lai Resort & SPA	Tien Lai Co., Ltd.	Taiwan	Pipe Lines Construction	4,000	4,000	408,000	30.22 %	5,007	1,254	379

(Continued)

TAIWAN STYRENE MONOMER CORPORATION

Notes to Consolidated Financial Statements

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

(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, 2025	Investment flows		Accumulated outflow of investment from Taiwan as of December 31, 2025	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	5,143 (USD 100)	(2)	3,143 (USD 100)	-	-	3,143 (USD 100)	6,982 (USD 224)	100.00%	6,982	24,083	80,747

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=NTD31.43000, USD1=NTD31.23333).
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.

(ii) Upper limit on investment in Mainland China:

Accumulated Investment in Mainland China as of December 31, 2025	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment (Note)
3,143
(USD 100)	3,143
(USD 100)	515,661

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.

(14) Segment information:

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

~60~

TAIWAN STYRENE MONOMER CORPORATION

Statement of Cash and Cash Equivalents

December 31, 2025

(Expressed in Thousands of New Taiwan Dollars)

Item	Description	Amount
Petty cash		$ 160
Deposits in bank	Demand deposits and checking deposit in NTD	274,392
Deposits in bank	Demand deposits in USD355 [email protected]	11,173
Cash equivalents	Time deposits in USD2,600 [email protected]	81,718
Total		$ 367,443

~61~

TAIWAN STYRENE MONOMER CORPORATION

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

December 31, 2025

(Expressed in Thousands of New Taiwan Dollars)

Name of investee	Summary	Shares	Cost	Fair Value
				Unit Price	Total Amount
Test Research Inc.	Listed (and OTC-listed) stocks	155,000	11,896	191.50	29,682
Wiwynn Corporation	Listed (and OTC-listed) stocks	1,000	4,151	4,485.00	4,485
Taiwan Semiconductor Manufacturing Company, Ltd	Listed (and OTC-listed) stocks	2,000	2,854	1,550.00	3,100
Hon Hai Precision Industry Co., Ltd	Listed (and OTC-listed) stocks	160,000	36,692	230.50	36,880
Power Win Taiwan Co., Ltd	Listed (and OTC-listed) stocks	100,000	3,800	40.04	4,004
KGI Financial Holding Co., Ltd	Listed (and OTC-listed) stocks	200,000	1,581	7.87	1,574
					79,725

TAIWAN STYRENE MONOMER CORPORATION

Statement of Accounts Receivable

December 31, 2025

(Expressed in Thousands of New Taiwan Dollars)

Client Name	Description	Amount	Note
Non-related parties:
Company A	Payment for goods	$ 176,907
Company B	"	136,101
Company C	"	46,437
Company D	"	40,837
Company E	"	35,776
Others	"	95,244	Note
		531,302
Less: Loss allowance		(72)
Total		$ 531,230

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

Statement of Inventories

Item	Description	Amount
		Cost	Net realizable value
Finished goods	SM and PDEB	$ 143,805	138,149
By-product	Toluene	4,701	4,668
Semi-finished products	Ethylbenzene	22,776	32,403
Work in progress	Ethylbenzene	33,937	31,401
Raw materials	Benzene, Ethylene	61,974	53,232
Supplies	Energy, Chemicals	49,738	49,723
		316,931
Less: Allowance for inventory decline in value		(16,982)	309,576
		$ 299,949

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, 2025

(Expressed in Thousands of New Taiwan Dollars)

Name of investee	Beginning balance		Addition		Decrease		Ending balance		Accumulated impairment	Collateral
	Shares	Amount	Shares	Amount (Note1)	Shares	Amount (Note2)	Shares	Fair Value
Yu-Jie Investment Co., Ltd.	21,320,000	$ 528,771	-	151,214	-	-	21,320,000	679,985	NA	Nil
Yuan-Jie Investment Co., Ltd.	21,000,000	438,498	-	137,641	-	-	21,000,000	576,139	NA	Nil
Global Investment Holding Co., Ltd	10,233,608	92,613	-	6,657	-	-	10,233,608	99,270	NA	Nil
Universal Venture Capital Investment Corporation	8,400,000	68,493	-	5,792	-	-	8,400,000	74,285	NA	Nil
Deng Yun Co., Ltd.	591,945	55,136	-	3,687	-	-	591,945	58,823	NA	Nil
GVISION-USA, INC.	666,667	22,698	-	-	-	3,280	666,667	19,418	NA	Nil
Lidien Inc.	760,000	16,564	-	-	-	3,000	760,000	13,564	NA	Nil
Asia Global Venture Capital II Co., Ltd.	440,979	10,518	-	-	44,098	2,147	396,881	8,371	NA	Nil
Leadwell Cnc Machines Mfg., Corp.	37,352	1,056	-	-	-	151	37,352	905	NA	Nil
Vxis Technology Corp.	11,959	7	-	-	11,959	7	-	-	NA	Nil
Faith Alliance Corporation	25,720	72	-	37	-	-	25,720	109	NA	Nil
Excellence Electronic Co., Ltd.	912	5	-	7	912	12	-	-	NA	Nil
Crownp Technology Inc.	709	-	-	-	-	-	709	-	NA	Nil
Shieh Tai Biochemical Technology Co., Ltd.	120,339	-	-	-	-	-	120,339	-	NA	Nil
Lof Solar Corp.	600,000	-	-	-	-	-	600,000	-	NA	Nil
		$ 1,234,431		305,035		8,597		1,530,869

Note1: The amount of addition is valuation gain of $305,035 thousand.
Note2: The amount of decrease included capital reduction of $1,402 thousand, disposal of $19 thousand, and valuation loss of $7,176 thousand.

TAIWAN STYRENE MONOMER CORPORATION

Statement of Changes in Investments Accounted for Using the Equity Method

For the year ended December 31, 2025

(Expressed in Thousands of New Taiwan Dollars)

Name of investee	Beginning balance		Addition (Note1)		Decrease (Note2)		Ending balance			Market Value or Net Assets Value		Collateral
	Shares	Amount	Shares	Amount	Shares	Amount	Shares	Percentage of ownership	Amount	Unit price	Total amount
Yangmingshan Tien Lai Resort & SPA	25,865,618	$ 691,657	-	1,177	-	-	25,865,618	65.07 %	692,834	-	692,834	Nil
YSIC Ltd.	72,446,838	1,048,189	-	54,426	21,996,915	243,300	50,449,923	99.99 %	859,315	-	859,315	Nil
Yuan-Shin Materials Technology Co., Ltd.	5,000,000	57,539	-	3,350	-	5,810	5,000,000	100.00 %	55,079	-	55,079	Nil
Grand Cathay Venture Capital Co., Ltd.	40,000,000	588,585	-	-	-	69,770	40,000,000	25.00 %	518,815	-	518,815	Nil
Wonderland Enterprise Co., Ltd.	29,629,597	1,551,212	-	692,044	-	292,504	29,629,597	29.63 %	1,950,752	-	1,950,752	Nil
Hung Kang Co., Ltd.	-	-	900,000	8,850	200,000	2,736	700,000	35.00 %	6,114	-	6,114	Nil
Functional Coating System Technology Co., Ltd.	1,744,186	30,244	58,139	3,567	-	180	1,802,325	36.05 %	33,631	-	33,631	Nil
Universal Investments Limited	80	17,500	-	-	-	1,902	80	40.00 %	15,598	-	15,598	Nil
		$ 3,984,926		763,414		616,202			4,132,138		4,132,138

Note1: The amount of addition included investment income $28,043 thousand, other comprehensive income $722,306 thousand, acquisition of $10,593 thousand, and change in ownership interests in investments $2,472 thousand.
Note2: The amount of decrease included investment losses $51,927 thousand, other comprehensive losses $52,724 thousand, changes in ownership equity of $468,118 thousand, and dividend received $43,433 thousand.

~65~

TAIWAN STYRENE MONOMER CORPORATION

Statement of Accounts Payables

December 31, 2025

(Expressed in Thousands of New Taiwan Dollars)

Item	Decrease	Amount	Note
Non-related parties:
Company F	Payment for goods	$ 285,334
Company G	"	63,691
Company H	"	63,626
Others	"	96,074	Note
Total		$ 508,725

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

~66~

TAIWAN STYRENE MONOMER CORPORATION

Short - term Borrowings Schedule

December 31, 2025

(Expressed in Thousands of New Taiwan Dollars)

Types of borrowings	Creditor	Ending balance	Contract term	Interest rate range	Collateral or guarantee
Borrowings from financial institutions	Taiwan Business Bank	$ 300,000	116.1.23	1.975 %	Unsecured
Borrowings from financial institutions	Mega International Commercial Bank	100,000	115.6.30	1.980 %	Unsecured
Borrowings from financial institutions	Chang Hwa Bank	100,000	115.9.30	1.970 %	Unsecured
Borrowings from financial institutions	Bank of Taiwan	800,000	116.2.10	1.870 %	Secured
Borrowings from financial institutions	Shin Kong Bank	50,000	115.4.8	2.000 %	Unsecured
		$ 1,350,000

TAIWAN STYRENE MONOMER CORPORATION

Statement of Operating Costs

For the year ended December 31, 2025

(Expressed in Thousands of New Taiwan Dollars)

Item	Amount
	Subtotal	Total
Cost of sales from manufacturing
Direct raw materials
Balance at 1 January	$ 119,682
Purchases of raw materials	7,338,618
Balance at December 31	(61,974)	7,396,326
Indirect supplies
Balance at January 1	95,417
Purchases of indirect supplies	963,870
Less: transfer to other prepayments and other non-current assets	(58,688)
Balance at December 31	(49,738)	950,861
Direct labor		45,615
Manufacturing overhead		636,948
Manufacturing cost		9,029,750
Work-in -process inventory, January 1		141,093
Purchases of work-in process inventory		14,407
Work-in process inventory, December 31		(56,713)
Cost of goods manufactured		9,128,537
Finished goods, January 1		118,169
Finished goods, December 31		(148,506)
Gain from recovery in value of inventories		(2,150)
Total operating costs		$ 9,096,050

~67~

TAIWAN STYRENE MONOMER CORPORATION

Statement of Selling Expenses

For the year ended December 31, 2025

(Expressed in Thousands of New Taiwan Dollars)

Item	Amount	Note
Import/export expense	$ 16,908
Shipping expenses	24,283
Salaries	7,663
Commissions	1,514
Others	4,021	Note
Total	$ 54,389

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

Statement of Administrative Expenses

Item	Amount	Note
Salaries	$ 40,274
Employee welfare	6,580
Insurance	3,902
Others	25,867	Note
Total	$ 76,623

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

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 Deferred Tax Assets: Note 6(p)

Statement of Other Payables: Note 6(m)

Statement of Deferred Tax Liabilities: Note 6(p)

Statement of Operating Revenue: Note 6(s)

Statement of Current Period Employee Benefits, Depreciation, and Amortization by Function: Note 12

~69~

AI assistant

T.S.M.C. — Audit Report / Information 2025

51769_rns_2026-05-18_2f9c7158-ea3b-4e99-a3d2-e24bbe7554e4.pdf

TAIWAN STYRENE MONOMER CORPORATION

Table of contents

Independent Auditors' Report

Opinion

Basis for Opinion

Key Audit Matters

1. Revenue recognition

Other Matter

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

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

Notes to Readers

(English Translation of Financial Statements Originally Issued in Chinese)

TAIWAN STYRENE MONOMER CORPORATION

Balance Sheets

December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

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

TAIWAN STYRENE MONOMER CORPORATION

Statements of Changes in Equity

(English Translation of Financial Statements Originally Issued in Chinese)

TAIWAN STYRENE MONOMER CORPORATION

Statements of Cash Flows

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

(4) Summary of material accounting policies

(a) Statement of compliance

(b) Basis of preparation

(i) Basis of measurement

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

(6) Explanation of significant accounts

(a) Cash and cash equivalents

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

(c) Accounts receivable

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

(ii) Associates

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

TAIWAN STYRENE MONOMER CORPORATION

Notes to the Parent Company Only Financial Statements

T.S.M.C. Audit Report / Information 2025