Stock Code:1310

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Consolidated Financial Statements

With Independent Auditors' Review Report for the Six Months Ended June 30, 2025 and 2024

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

The independent auditors' review report and the accompanying consolidated 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' review report and consolidated financial statements, the Chinese version shall prevail.

Contents	Page
1. Cover Page	1
2. Table of Contents	2
3. Independent Auditors’ Review Report	3
4. Consolidated Balance Sheets	4
5. Consolidated Statements of Comprehensive Income	5
6. Consolidated Statements of Changes in Equity	6
7. Consolidated Statements of Cash Flows	7
8. Notes to the Consolidated Financial Statements
(1) Company history	8
(2) Approval date and procedures of the consolidated financial statements	8
(3) New standards, amendments and interpretations adopted	8~10
(4) Summary of material accounting policies	10~12
(5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty	12
(6) Explanation of significant accounts	12~37
(7) Related-party transactions	37~38
(8) Assets pledged as security	38
(9) Commitments and contingencies	38
(10) Losses due to major disasters	39
(11) Subsequent events	39
(12) Other	39
(13) Other disclosures
(a) Information on significant transactions	40
(b) Information on investees	41
(c) Information on investment in mainland China	41~42
(14) Segment information	42~43

KPMG

吾侯建業聯合會計師事務所

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' Review Report

To the Board of Directors of

Taiwan Styrene Monomer Corporation:

Introduction

We have reviewed the accompanying consolidated balance sheets of Taiwan Styrene Monomer Corporation and its subsidiaries as of June 30, 2025 and 2024, the related consolidated statements of comprehensive income for the three months and six months ended June 30, 2025 and 2024, as well as the changes in equity and cash flows for the six months ended June 30, 2025 and 2024, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, "Interim Financial Reporting" endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

Except as explained in the Basis for Qualified Conclusion paragraph, we conducted our reviews in accordance with the Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" of the Republic of China. A review of the consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the Standards on Auditing of the Republic of China and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for Qualified Conclusion

As stated in note 4(b), the consolidated financial statements included the financial statements of certain non-significant subsidiaries, which were not reviewed by independent auditors. These financial statements reflect total assets amounting to $310,926 thousand and $324,204 thousand, constituting 3.31% and 3.18% of consolidated total assets as of June 30, 2025 and 2024, respectively; total liabilities amounting to $646 thousand and $598 thousand, constituting 0.03% and 0.02% of consolidated total liabilities as of June 30, 2025 and 2024, respectively; and total comprehensive income amounting to $976 thousand, $1,753 thousand, $480 thousand and $3,824 thousand, constituting (0.39)%, 2.14%, (0.10)% and 3.03% of consolidated total comprehensive income, for the three months and six months ended June 30, 2025 and 2024, respectively.

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

Furthermore, as stated in note 6(h), the equity accounted investments of Taiwan Styrene Monomer Corporation and its subsidiaries in its investee companies of $2,101,552 thousand and $1,794,141 thousand as of June 30, 2025 and 2024, respectively, and the related share of profit (loss) of associates and joint ventures accounted for using equity method on these investee companies of $(2,956) thousand, $(4,478) thousand, $(7,770) thousand and $(10,911) thousand for the three months and six months ended June 30, 2025 and 2024, for the three months and six months ended June 30, 2025 and 2024, respectively, were recognized solely on the financial statements prepared by these investee companies, but not reviewed by independent auditors.

Qualified Conclusion

Except for the adjustments, if any, as might have been determined to be necessary had the financial statements of certain consolidated subsidiaries and equity accounted investee companies described in the Basis for Qualified Conclusion paragraph above been reviewed by independent auditors, based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of Taiwan Styrene Monomer Corporation and its subsidiaries as of June 30, 2025 and 2024, and of its consolidated financial performance for the three months and six months ended June 30, 2025 and 2024, as well as its consolidated cash flows for the six months ended June 30, 2025 and 2024 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, "Interim Financial Reporting" endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

The engagement partners on the reviews resulting in this independent auditors' review report are Yin, Yuan-Sheng and Wu, Lin.

KPMG

Taipei, Taiwan (Republic of China)

August 6, 2025

Notes to Readers

The accompanying consolidated financial statements are intended only to present the consolidated 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 review such consolidated financial statements are those generally accepted and applied in the Republic of China.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

June 30, 2025, December 31 and June 30, 2024

(Expressed in Thousands of New Taiwan Dollars)

Assets	June 30, 2025		December 31, 2024		June 30, 2024
	Amount	%	Amount	%	Amount	%
Current assets:
1100 Cash and cash equivalents (note 6(a))	$ 384,981	4	497,755	5	349,963	3
1110 Current financial assets at fair value through profit or loss (note 6(b))	279,175	3	263,756	3	367,517	4
1170 Accounts receivable, net (note 6(c))	757,642	8	1,015,919	11	1,240,407	12
1200 Other receivables (note 7)	6,650	-	3,875	-	6,886	-
1220 Current tax assets	2,453	-	2,307	-	1,011	-
130X Inventories (note 6(d))	335,461	4	456,685	5	681,826	7
1410 Prepayments (note 6(e))	270,537	3	202,733	2	176,490	2
1470 Other current assets	639	-	225	-	287	-
1476 Other current financial assets (notes 6(f) and 8)	27,965	-	33,860	-	387,988	4
Total current assets	2,065,503	22	2,477,115	26	3,212,375	32
Non-current assets:
1510 Non-current financial assets at fair value through profit or loss (note 6(b))	4,194	-	6,967	-	6,764	-
1517 Non-current financial assets at fair value through other comprehensive income (note 6(g))	1,467,767	16	1,526,257	15	1,324,124	13
1550 Investments accounted for using equity method (note 6(h))	2,101,552	22	2,193,854	22	1,794,141	17
1600 Property, plant and equipment (notes 6(j) and 8)	3,088,172	33	3,212,795	32	3,346,673	33
1755 Right-of-use assets (note 6(k))	10,928	-	12,483	-	16,039	-
1760 Investment property, net (note 6(l))	55,778	1	55,950	1	56,123	1
1780 Intangible assets (note 6(m))	3,113	-	3,731	-	4,534	-
1840 Deferred tax assets (note 6(a))	490,062	5	448,967	4	362,733	4
1915 Prepayments for equipment	23,306	-	25,690	-	26,640	-
1970 Other long-term investments, net (note 6(n))	21,363	-	24,986	-	26,125	-
1920 Refundable deposits	3,979	-	3,839	-	3,841	-
1990 Other non-current assets (note 6(o))	61,880	1	27,472	-	27,117	-
Total non-current assets	7,332,094	78	7,542,991	74	6,994,854	68
Total assets	$ 9,397,597	100	10,020,106	100	10,207,229	100
Liabilities and Equity	June 30, 2025		December 31, 2024		June 30, 2024
---	---	---	---	---	---	---
	Amount	%	Amount	%	Amount	%
Current liabilities:
Short-term borrowings (notes 6(p) and 8)	$ 1,357,500	14	1,292,500	13	1,192,500	12
Contract liabilities (note 6(x))	39,202	1	42,641	1	39,439	1
Accounts payable	609,033	7	770,470	8	1,293,837	13
Other payables (notes 6(q) and 7)	88,141	1	116,283	1	122,944	1
Current tax liabilities	515	-	21	-	24	-
Current lease liabilities (note 6(s))	3,395	-	5,221	-	6,497	-
Long-term liabilities, current portion (notes 6(r) and 8)	8,682	-	8,631	-	8,529	-
Other current liabilities	3,448	-	2,577	-	3,208	-
Total current liabilities	2,109,916	23	2,238,344	23	2,666,978	27
Non-Current liabilities:
Long-term borrowings (notes 6(r) and 8)	39,098	1	43,439	1	47,780	-
Deferred tax liabilities (note 6(u))	175,056	2	175,095	2	174,831	2
Non-current lease liabilities (note 6(s))	6,979	-	6,919	-	8,819	-
Net defined benefit liability, non-current (note 6(t))	36,147	-	37,657	-	38,756	-
Other non-current liabilities	650	-	650	-	650	-
Total non-current liabilities	257,930	3	263,760	3	270,836	2
Total liabilities	2,367,846	26	2,502,104	26	2,937,814	29
Equity attributable to owners of parent (note 6(v)):
Capital stock	5,278,698	56	5,278,698	53	5,278,698	52
Capital surplus	135,182	1	129,663	1	75,728	1
Retained earnings:
Legal reserve	639,287	7	639,287	6	639,287	6
Special reserve	8,811	-	8,811	-	8,811	-
Unappropriated retained earnings (accumulated deficit)	(322,706)	(3)	44,872	-	184,339	2
	325,392	4	692,970	6	832,437	8
Other equity	1,163,847	12	1,290,470	13	861,986	8
Total equity attributable to owners of parent	6,903,119	73	7,391,801	73	7,048,849	69
Non-controlling interests	126,632	1	126,201	1	220,566	2
Total equity	7,029,751	74	7,518,002	74	7,269,415	71
Total liabilities and equity	$ 9,397,597	100	10,020,106	100	10,207,229	100

See accompanying notes to financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the three months and six months ended June 30, 2025 and 2024

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

	For the three months ended June 30				For the six months ended June 30
		2025		2024		2025		2024
		Amount	%	Amount	%	Amount	%	Amount	%
4000	Operating revenue (notes 6(h) and (x))	$ 2,446,371	100	3,432,906	100	4,740,083	100	5,659,110	100
5000	Operating costs (notes 6(d), (j), (s), (t) and 7)	2,577,428	105	3,459,316	101	5,038,766	106	5,706,117	101
	Gross loss from operations	(131,057)	(5)	(26,410)	(1)	(298,683)	(6)	(47,007)	(1)
	Operating expenses (notes 6(c), (j), (s) and (t)):
6100	Selling expenses	15,079	1	15,902	-	26,385	1	40,407	1
6200	Administrative expenses	28,443	1	32,726	1	57,717	1	65,634	1
6300	Research and development expenses	48	-	101	-	146	-	178	-
6450	Expected credit impairment loss (gain)	7	-	(18)	-	30	-	28	-
		43,577	2	48,711	1	84,278	2	106,247	2
	Operating loss	(174,634)	(7)	(75,121)	(2)	(382,961)	(8)	(153,254)	(3)
	Non-operating income and expenses (notes 6(h), (s) and (y)):
7100	Interest income	2,756	-	3,676	-	6,256	-	5,728	-
7010	Other income	15,296	-	10,008	-	17,186	-	17,743	-
7020	Other gains and losses	(27,772)	(1)	69,756	2	(30,165)	(1)	109,367	2
7050	Finance costs	(6,888)	-	(5,307)	-	(13,380)	-	(11,208)	-
7060	Shares of loss of associates and joint ventures accounted for using equity method	(3,114)	-	(4,637)	-	(7,880)	-	(12,750)	-
		(19,722)	(1)	73,496	2	(27,983)	(1)	108,880	2
9900	Loss before tax	(194,356)	(8)	(1,625)	-	(410,944)	(9)	(44,374)	(1)
7950	Income tax benefits (note 6(u))	933	-	3,898	-	39,319	1	12,750	-
	Net income (loss)	(193,423)	(8)	2,273	-	(371,625)	(8)	(31,624)	(1)
8300	Other comprehensive income:
8310	Components of other comprehensive income (loss) that will not be reclassified to profit or loss
8316	Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income	1,649	-	36,529	1	(27,863)	(1)	93,623	2
8320	Shares of other comprehensive income (loss) of associates and joint ventures accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss	(19,630)	(1)	34,616	1	(57,826)	(1)	25,656	-
8349	Less: Income tax related to components of other comprehensive income that will not be reclassified to profit or loss	-	-	-	-	-	-	-	-
	Components of other comprehensive income that will not be reclassified to profit or loss	(17,981)	(1)	71,145	2	(85,689)	(2)	119,279	2
8360	Components of other comprehensive income (loss) that will be reclassified to profit or loss
8361	Exchange differences on translation	(40,877)	(1)	8,615	-	(36,424)	-	38,429	1
8370	Shares of other comprehensive income (loss) of associates and joint ventures accounted for using equity method, components of other comprehensive income that will be reclassified to profit or loss	-	-	(241)	-	-	-	-	-
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	(40,877)	(1)	8,374	-	(36,424)	-	38,429	1
8300	Other comprehensive income, net	(58,858)	(2)	79,519	2	(122,113)	(2)	157,708	3
8500	Comprehensive income	$ (252,281)	(10)	81,792	2	(493,738)	(10)	126,084	2
	Profit (loss) attributable to:
8610	Owners of parent	$ (192,546)	(8)	5,362	-	(372,093)	(8)	(27,503)	(1)
8620	Non-controlling interests	(877)	-	(3,089)	-	468	-	(4,121)	-
		$ (193,423)	(8)	2,273	-	(371,625)	(8)	(31,624)	(1)
	Comprehensive income attributable to:
8710	Owners of parent	$ (251,398)	(10)	83,083	2	(494,201)	(10)	121,364	2
8720	Non-controlling interests	(883)	-	(1,291)	-	463	-	4,720	-
		$ (252,281)	(10)	81,792	2	(493,738)	(10)	126,084	2
	Earnings (loss) per share (note 6(w))
	Basic earnings (loss) per share	$ (0.36)		0.01		(0.70)		(0.05)
	Diluted earnings (loss) per share	$ (0.36)		0.01		(0.70)		(0.05)

See accompanying notes to financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

For the six months ended June 30, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

	Equity attributable to owners of parent
	Ordinary shares	Capital surplus	Retained earnings				Other equity interest			Total equity attributable to owners of parent	Non-controlling interests	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	255,588	7,183,073
Appropriation and distribution of retained earnings:Reversal of special reserve	-	-	-	(214,852)	214,852	-	-	-	-	-	-	-
Associates disposal of investments in equity instruments designated at fair value through other comprehensive income	-	-	-	-	42,003	42,003	-	(42,003)	(42,003)	-	-	-
Net loss	-	-	-	-	(27,503)	(27,503)	-	-	-	(27,503)	(4,121)	(31,624)
Other comprehensive income	-	-	-	-	-	-	29,588	119,279	148,867	148,867	8,841	157,708
Total comprehensive income	-	-	-	-	(27,503)	(27,503)	29,588	119,279	148,867	121,364	4,720	126,084
Distribution cash dividend by subsidiaries to non-controlling interests	-	-	-	-	-	-	-	-	-	-	(33,860)	(33,860)
Changes in non-controlling interest	-	-	-	-	-	-	-	-	-	-	(5,882)	(5,882)
Balance at June 30, 2024	$ 5,278,698	75,728	639,287	8,811	184,339	832,437	21,372	840,614	861,986	7,048,849	220,566	7,269,415
Balance at January 1, 2025	$ 5,278,698	129,663	639,287	8,811	44,872	692,970	31,508	1,258,962	1,290,470	7,391,801	126,201	7,518,002
Disposal of investments in equity instruments designated at fair value through other comprehensive income	-	-	-	-	(3,391)	(3,391)	-	3,391	3,391	-	-	-
Associates disposal of investments in equity instruments designated at fair value through other comprehensive income	-	-	-	-	7,906	7,906	-	(7,906)	(7,906)	-	-	-
Recovery of expired unclaimed dividends	-	5,519	-	-	-	-	-	-	-	5,519	-	5,519
Net (loss) income	-	-	-	-	(372,093)	(372,093)	-	-	-	(372,093)	468	(371,625)
Other comprehensive income	-	-	-	-	-	-	(36,419)	(85,689)	(122,108)	(122,108)	(5)	(122,113)
Total comprehensive income	-	-	-	-	(372,093)	(372,093)	(36,419)	(85,689)	(122,108)	(494,201)	463	(493,738)
Distribution cash dividend by subsidiaries to non-controlling interests	-	-	-	-	-	-	-	-	-	-	(1)	(1)
Changes in non-controlling interests	-	-	-	-	-	-	-	-	-	-	(31)	(31)
Balance at June 30, 2025	$ 5,278,698	135,182	639,287	8,811	(322,706)	325,392	(4,911)	1,168,758	1,163,847	6,903,119	126,632	7,029,751

See accompanying notes to financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the six months ended June 30, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

	For the six months ended June 30
	2025	2024
Cash flows used in operating activities:
Loss before tax	$ (410,944)	(44,374)
Adjustments:
Adjustments to reconcile loss
Depreciation expense	136,296	136,950
Amortization expense	618	862
Expected credit impairment loss	30	28
Interest expense	13,380	11,208
Interest income	(6,256)	(5,728)
Dividend income	(10,405)	(14,224)
Share of loss of associates and joint ventures accounted for using equity method	7,770	10,911
Property, plan and equipment transferred to expenses	25	-
Loss on disposal of investments	-	2,984
Reversal of impairment loss on non-financial assets	(151)	(141)
Gain on lease modification	(26)	(27)
Gain from recovery in value of inventories	(4,151)	(37,486)
Total adjustments to reconcile loss	137,130	105,337
Changes in operating assets and liabilities:
Changes in operating assets:
Financial assets mandatorily measured at fair value through profit or loss	(12,646)	(92,840)
Accounts receivable	258,606	(419,672)
Other receivables	1,390	(231)
Inventories	125,375	87,350
Prepayments	(102,061)	40,923
Other current assets	(414)	1,439
Other current financial assets	5,895	(341,782)
Total changes in operating assets	276,145	(724,813)
Changes in operating liabilities:
Current contract liabilities	(3,439)	(1,441)
Accounts payable	(161,437)	282,184
Other payables	(27,515)	(21,606)
Other current liabilities	(152)	(74)
Net defined benefit liabilities	(1,510)	(5,930)
Total changes in operating liabilities	(194,053)	253,133
Total changes in operating assets and liabilities	82,092	(471,680)

See accompanying notes to financial statements.

7-1

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows (Continued)

For the six months ended June 30, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

	For the six months ended June 30
	2025	2024
Cash outflows from operations	$ (191,722)	(410,717)
Interest received	8,312	5,204
Dividends received	4,005	10,110
Interest paid	(12,780)	(11,585)
Income taxes (paid) refunded	(356)	3,423
Net cash flows used in operating activities	(192,541)	(403,565)
Cash flows from investing activities:
Proceeds from capital reduction of financial assets at fair value through other comprehensive income	-	652
Proceeds from disposal of investments accounted for using equity method	-	37,355
Acquisition of investments accounted for using equity method	(1,744)	-
Acquisition of property, plant and equipment	(7,147)	(21,008)
Increase in refundable deposits	(140)	(26)
Decrease in refundable deposits	-	38
Decrease in other long-term investment	1,151	1,164
Dividends received	26,880	37,960
Loss of control over subsidiaries	-	(5,434)
Net cash flows from investing activities	19,000	50,701
Cash flows from financing activities:
Increase in short-term borrowings	4,420,500	3,587,500
Decrease in short-term borrowings	(4,355,500)	(3,502,500)
Repayments of long-term borrowings	(4,290)	(4,196)
Payment of lease liabilities	(3,405)	(3,895)
Recovery of expired unclaimed dividends	5,519	-
Cash dividends paid	(1)	-
Change in non-controlling interests	(31)	-
Net cash flows from financing activities	62,792	76,909
Effect of exchange rate changes on cash and cash equivalents	(2,025)	21,826
Net decrease in cash and cash equivalents	(112,774)	(254,129)
Cash and cash equivalents at beginning of period	497,755	604,092
Cash and cash equivalents at end of period	$ 384,981	349,963

See accompanying notes to financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

June 30, 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 major business activities of the Company and its subsidiaries (together referred to as the "Group" and individually as "Group entities") are the manufacture and sell of styrene monomers. Please refer to note 4(b) for related information of the Group entities' major business activities.

(2) Approval date and procedures of the consolidated financial statements

The consolidated financial statements were authorized for issue by the Board of Directors on August 6, 2025.

(3) New standards, amendments and interpretations adopted

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

The Group has initially adopted the following new amendments, which do not have a significant impact on its consolidated 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 Group 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 consolidated 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 AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The following new and amended standards, which may be relevant to the Group, 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 |

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

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

The Group 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 consolidated 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”

(4) Summary of material accounting policies

(a) Statement of compliance

These consolidated financial statements have been prepared in accordance with the Regulation Governing the Preparation of Financial Reports by Securities Issuers (the “Regulation”) and IAS 34 “Interim Financial Reporting” which are endorsed and issued into effect by FSC, and do not include all of the information required by the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations and SIC Interpretations endorsed and issued into effect by the FSC (hereinafter referred to IFRS Accounting Standards endorsed by the FSC) for a complete set of the annual consolidated financial statements.

Except the following accounting policies mentioned below, the significant accounting policies adopted in the consolidated financial statements are the same as those in the consolidated financial statement for the year ended December 31, 2024. For the related information, please refer to note 4 of the consolidated financial statements for the year ended December 31, 2024.

(b) Basis of consolidation

(i) List of subsidiaries in the consolidated financial statements:

Name of investor	Name of subsidiary	Principal activity	Shareholding (%)			Note
			June 30, 2025	December 31, 2024	June 30, 2024
The Company	YSIC Ltd.	General investment, residential building and industrial plant development rental business	99.99	99.99	99.99
The Company	Yuan-Shin Materials Technology Co., Ltd.	Basic chemical materials and plastic raw material manufacturing	100.00	100.00	100.00	Note 5
The Company	Yangmingshan Tien Lai Resort & SPA	Hotel	65.07	65.07	65.07	Note 1
YSIC Ltd.	Grand Capital Co., Ltd.	Investment	100.00	100.00	100.00	Note 5
YSIC Ltd.	Tien Lai Co., Ltd.	Piping engineering	-	-	-	Note 2
YSIC Ltd.	Kun Shan International Ltd.	Investment	100.00	100.00	62.03	Note 4

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Name of investor	Name of subsidiary	Principal activity	Shareholding (%)			Note
			June 30, 2025	December 31, 2024	June 30, 2024
Kun Shan International Ltd.	Kun Shan Yu-Fu Technology Education Consulting Co., Ltd.	Educational consulting, information consulting, software and data storage consultation	100.00	100.00	100.00
Kun Shan International Ltd.	Kun Shan Jia-an Technology Education Consulting Co., Ltd.	Educational consulting, information consulting, software and data storage consultation	-	-	-	Note 3
Yangmingshan Tien Lai Resort & SPA	Tien Lai Co., Ltd.	Piping engineering	-	-	-	Note 2

Note 1: The Company and YSIC Ltd. (holding 12.10% of common shares) totally hold 77.17% of common shares of Yangmingshan Tien Lai Resort & SPA.

Note 2: Tien Lai Co., Ltd. completed the cash capital increase on August 30, 2023. After the capital increase, YSIC Ltd. and Yangmingshan Tien Lai Resort & SPA collectively held 50% shares of Tien Lai Co., Ltd. The Group does not directly or indirectly hold more than half of the voting shares of Tien Lai Co., Ltd. However, since the chairman of the company was appointed by the Group and was able to obtain support of the relative majority of voting rights, the company was included in the consolidated entity. As of April 1, 2024, the Group was no longer able to obtain the support of the majority of voting rights, and after a comprehensive assessment, it was determined that control over the company was lost.

Note 3: Kun Shan Jia-an Technology Education Consulting Co., Ltd. completed the liquidation in February 2024.

Note 4: On August 16, 2024, YSIC Ltd. acquired the remaining 2,266 thousand shares of KUN SHAN INTERNATIONAL LTD. at a price of USD 0.585 per share, for a total acquisition amount of USD 1,326 thousand (equivalent to NTD 42,597 thousand). The difference between the acquisition cost and the book value of the subsidiary is recorded under capital surplus, with the amount attributable to the company's capital surplus being $52,865 thousand. Please refer to Note 6(v) of the consolidated financial statements for the year ended December 31, 2024 for details. After the acquisition, YSIC Ltd.'s shareholding in KUN SHAN INTERNATIONAL LTD. increased to 100.00%.

Note 5: Non-significant subsidiaries for which the financial statements have not been reviewed by independent auditors.

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The pension cost in the interim period was calculated and disclosed on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior fiscal year.

(d) Income taxes

The income tax expenses have been prepared and disclosed in accordance with paragraph B12 of International Accounting Standards 34, Interim Reporting.

Income tax expenses for the period are best estimated by multiplying pre-tax income for the interim reporting period by the effective annual tax rate as forecasted by the management. This should be recognized fully as tax expense for the current period (and allocated to current and deferred taxes based on its proportionate size).

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

The preparation of the consolidated financial statements in conformity with the Regulations and IAS 34 “Interim Financial Reporting” endorsed by the FSC requires management to make 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.

The preparation of the consolidated interim financial statements, estimates and underlying assumptions are reviewed on an ongoing basis which are in conformity with the consolidated financial statements for the year ended December 31, 2024. For related information, please refer to note 5 of the consolidated financial statements for the year ended December 31, 2024.

(6) Explanation of significant accounts

Except for the following disclosures, there is no significant difference as compared with those disclosed in the consolidated financial statements for the year ended December 31, 2024. Please refer to notes 6 of the 2024 annual consolidated financial statements.

(a) Cash and cash equivalents

	June 30, 2025	December 31, 2024	June 30, 2024
Cash on hand	$ 296	767	841
Petty cash	873	910	883
Deposits in bank	289,284	223,044	267,114
Times deposits due within three months	94,528	273,034	81,125
	$ 384,981	497,755	349,963

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(b) Financial assets and liabilities at fair value through profit or loss

	June 30, 2025	December 31, 2024	June 30, 2024
Mandatorily measured at fair value through profit or loss:
Current:
Listed stocks	$ 275,417	259,459	339,018
Funds	3,758	4,297	28,499
Non-current:
Listed stocks	4,194	6,967	6,764
Total	$ 283,369	270,723	374,281

	June 30, 2025	December 31, 2024	June 30, 2024
Accounts receivable	$ 757,723	1,015,970	1,240,469
Less: Loss allowance	(81)	(51)	(62)
	$ 757,642	1,015,919	1,240,407

The loss allowance provision was determined as follows:

	June 30, 2025
	Gross carrying amount	Weighted-average loss rate	Loss allowance provision
Current	$ 753,363	0.005%	38
1 to 90 days past due	4,360	1%	43
	$ 757,723		81
	December 31, 2024
	Gross carrying amount	Weighted-average loss rate	Loss allowance provision
Current	$ 1,015,970	0.005%	51
	June 30, 2024
	Gross carrying amount	Weighted-average loss rate	Loss allowance provision
Current	$ 1,240,469	0.005%	62

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The movements in the allowance for accounts receivable were as follows:

	For the six months ended
	2025	2024
Beginning balance	$ 51	1,974
Impairment losses recognized	30	28
Effect of loss of control of subsidiaries	-	(1,940)
Ending balance	$ 81	62

(d) Inventories

	June 30, 2025	December 31, 2024	June 30, 2024
Merchandise inventory	$ 1,227	1,456	1,160
Finished goods	98,750	108,319	132,101
By-product	4,224	6,361	10,081
Semi-finished products	23,465	68,347	63,865
Work in progress	54,954	68,684	82,725
Raw materials	102,465	108,574	364,251
Supplies	50,376	94,944	27,643
	$ 335,461	456,685	681,826

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

	For the three months ended June 30		For the six months ended June 30
	2025	2024	2025	2024
(Gain from recovery) loss from decline in value of inventories	$ (30,694)	5,648	(4,151)	(37,486)

None of the inventories of the Group was pledged as collateral on June 30, 2025, December 31 and June 30, 2024.

(e) Prepayments

	June 30, 2025	December 31, 2024	June 30, 2024
Prepayment for purchases	$ -	-	10,704
Supplies	112,021	109,506	111,372
Overpaid sales tax	93,564	82,966	49,717
Others	64,952	10,261	4,697
	$ 270,537	202,733	176,490

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(f) Other current financial assets

	June 30, 2025	December 31, 2024	June 30, 2024
Time deposits due over three months	$ 20,000	20,000	381,233
Restricted deposits in bank	7,965	13,860	6,755
	$ 27,965	33,860	387,988

The above assets of the Group had been pledged as collateral of performance guarantee; please refer to note 8.

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

	June 30, 2025	December 31, 2024	June 30, 2024
Equity investments:
Domestic non-listed stocks	$ 1,132,651	1,150,797	964,588
Foreign non-listed equity investments	335,116	375,460	359,536
	$ 1,467,767	1,526,257	1,324,124

(i) The Group designated the investments shown above at fair value through other comprehensive income because these equity securities represent those investments that the Group intends to hold for long term strategic purposes not for trading purposes. For the three months and six months ended June 30, 2025 and 2024, the dividends of $7,367 thousand, $6,192 thousand, $7,367 thousand and $12,109 thousand related to equity investments at fair value through other comprehensive income were recognized.

(ii) For market risk; please refer to note 6(aa).

(iii) None of the above-mentioned financial assets had been pledged as collateral as of June 30, 2025, December 31 and June 30, 2024.

(h) Investments accounted for using equity method

(i) Associates

Associates of the Group consisted of the following:

	June 30, 2025		December 31, 2024		June 30, 2024
	Amount	Shareholding (%)	Amount	Shareholding (%)	Amount	Shareholding (%)
Grand Cathay Venture Capital Co., Ltd.	$ 468,355	25.00	588,585	25.00	677,276	25.00
Wonderland Enterprise Co., Ltd.	1,577,700	37.04	1,551,212	37.04	1,064,514	37.04
Functional Coating System
Technologies Co., Ltd.	33,346	36.05	30,244	34.88	28,253	34.88
Universal Investments Limited	15,560	40.00	17,500	40.00	17,816	40.00
Tien Lai Co., Ltd. (Note)	6,591	50.00	6,313	50.00	6,282	50.00
	$ 2,101,552		2,193,854		1,794,141

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Note: On April 1, 2024, the Group lost control over Tien Lai Co., Ltd. and changed its investment in Tien Lai Co., Ltd. to the investment accounted for using the equity method.

On April 1, 2024, the Group disposed of all its shares in Globaltop Technology Co., Inc.. For related information, please refer to note 4(h) of the consolidated financial statements for the year ended December 31, 2024.

The Group’s financial information on investments accounted for using the equity method that are significant was as follows:

1) Grand Cathay Venture Capital Co., Ltd.

	June 30, 2025	December 31, 2024	June 30, 2024
Current assets	$ 1,473,003	1,990,506	2,710,411
Non-current assets	401,955	391,301	-
Current liabilities	(1,540)	(27,467)	(1,309)
Net assets	$ 1,873,418	2,354,340	2,709,102
	For the three months ended June 30		For the six months ended June 30
	2025	2024	2025
Operating revenue	$ 121,492	137,431	163,767
Net loss	$ (12,825)	(24,167)	(31,563)
Other comprehensive income	(221,238)	(170,822)	(341,839)
Total comprehensive income	$ (234,063)	(194,989)	(373,402)
		For the six months ended June 30
		2025	2024
Beginning shares of net assets of associates		$ 588,585	821,087
Comprehensive income attributable to the Group		(93,350)	(105,851)
Dividends received from associates		(26,880)	(37,960)
Ending shares of net assets of associates		$ 468,355	677,276

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

2) Wonderland Enterprise Co., Ltd.

	June 30, 2025	December 31, 2024	June 30, 2024
Current assets	$ 14,545	51,029	2,875,146
Non-current assets	4,245,815	4,195,016	-
Current liabilities	(350)	(57,710)	(956)
Non-current liabilities	(216)	(60)	-
Net assets	$ 4,259,794	4,188,275	2,874,190
	For the three months ended June 30		For the six months ended June 30
	2025	2024	2025
Operating revenue	$ -	1,800	-
Net loss	$ (1,307)	(313)	(3,091)
Other comprehensive income	96,333	208,768	74,610
Total comprehensive income	$ 95,026	208,455	71,519
		For the six months ended June 30
		2025	2024
Beginning shares of net assets of associates		$ 1,551,212	948,059
Comprehensive income attributable to the Group		26,488	116,455
Ending shares of net assets of associates		$ 1,577,700	1,064,514

The Group’s financial information for investments accounted for using equity method that are individually insignificant was as follows:

	For the three months ended June 30		For the six months ended June 30
	2025	2024	2025	2024
Attributable to the Group:
Net income	$ 734	1,679	1,266	4,141
Other comprehensive income	-	(241)	-	-
Total comprehensive income	$ 734	1,438	1,266	4,141

(ii) Investments pledge

None of the investments using equity method of the Group was pledged as collateral.

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(iii) The unreviewed financial statements of investments accounted for using equity method

The investments accounted for using equity method and the share of the profit or loss and other comprehensive income were calculated based on the financial statements that had not been reviewed.

(i) Loss of control over subsidiaries

The Group, on April 1, 2024, determined that as it was no longer able to obtain the support of the majority voting rights, after a comprehensive evaluation, concluded that it lost control over Tien Lai Co., Ltd. and since that date, this investment was changed to the investment accounted for using the equity method. For related information, please refer to Note 6(h).

As of March 31, 2024, the carrying amounts of assets and liabilities of Tien Lai Co., Ltd. were as follows:

Cash and cash equivalents	$ 5,434
Accounts receivable, net	1,393
Other current assets	9
Property, plant and equipment	4,985
Other non-current assets	1,124
Accounts payable and other payables	(920)
Other current liabilities	(251)
Other non-current liabilities	(10)
Carrying amount of net assets	$ 11,764

(j) Property, plant and equipment

The movements of the property, plant and equipment of the Group 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	$ 1,576,740	8,462	621,630	7,493,505	2,983	928,521	4,941	10,636,782
Additions	-	-	-	199	-	2,101	3,621	5,921
Disposals	-	-	-	(27,091)	-	(454)	-	(27,545)
Reclassification	-	-	-	6,311	-	991	(4,942)	2,360
Balance as of June 30, 2025	$ 1,576,740	8,462	621,630	7,472,924	2,983	931,159	3,620	10,617,518
Balance as of January 1, 2024	$ 1,581,040	8,462	622,330	7,528,153	2,983	926,781	64,019	10,733,768
Additions	-	-	-	5,904	-	4,021	7,334	17,259
Disposals	-	-	-	(53,628)	-	-	-	(53,628)
Reclassification	-	-	-	44,071	-	-	(56,767)	(12,696)
Effect of loss of control over subsidiaries	(4,300)	-	(700)	-	-	(6,947)	-	(11,947)
Balance as of June 30, 2024	$ 1,576,740	8,462	621,630	7,524,500	2,983	923,855	14,586	10,672,756
Accumulated depreciation:
Balance as of January 1, 2025	$ -	8,462	287,579	6,458,444	2,251	667,251	-	7,423,987
Depreciation	-	-	7,219	100,338	59	25,288	-	132,904
Disposals	-	-	-	(27,091)	-	(454)	-	(27,545)
Balance as of June 30, 2025	$ -	8,462	294,798	6,531,691	2,310	692,085	-	7,529,346

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

	Land	Land improvements	Buildings and structures	Machinery and equipment	Transportation equipment	Other equipment	Construction in progress	Total
Balance as of January 1, 2024	$ -	8,446	273,146	6,345,778	2,135	624,187	-	7,253,692
Depreciation	-	11	7,228	100,138	58	25,546	-	132,981
Disposals	-	-	-	(53,628)	-	-	-	(53,628)
Effect of loss of control over subsidiaries	-	-	(15)	-	-	(6,947)	-	(6,962)
Balance as of June 30, 2024	$ -	8,457	280,359	6,392,288	2,193	642,786	-	7,326,083
Carrying amount:
Balance as of January 1, 2025	$ 1,576,740	-	334,051	1,035,061	732	261,270	4,941	3,212,795
Balance as of June 30, 2025	$ 1,576,740	-	326,832	941,233	673	239,074	3,620	3,088,172
Balance as of January 1, 2024	$ 1,581,840	16	349,184	1,182,375	848	302,594	64,019	3,480,076
Balance as of June 30, 2024	$ 1,576,740	5	341,271	1,132,212	790	281,069	14,586	3,346,673

As of June 30, 2025, December 31 and June 30, 2024, the property, plant and equipment of the Group had been pledged as collateral for loans; please refer to note 8.

(k) Right-of-use assets

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

	Land	Buildings and structures	Transportation equipment	Office equipment	Total
Carrying amount:
Balance as of January 1, 2025	$ 3,660	380	2,776	5,667	12,483
Balance as of June 30, 2025	$ 4,542	173	1,480	4,733	10,928
Balance as of January 1, 2024	$ 3,767	794	6,895	8,257	19,713
Balance as of June 30, 2024	$ 3,774	587	4,836	6,842	16,039

There were no significant addition, disposal, or recognition and reversal of impairment losses of right-of-use assets for the six months ended June 30, 2025 and 2024. For other relevant information, please refer to notes 6(k) of the consolidated financial statement of 2024.

(l) Investment property

	Land	Buildings and structures	Total
Carrying amount:
Balance as of January 1, 2025	$ 46,101	9,849	55,950
Balance as of June 30, 2025	$ 46,101	9,677	55,778
Balance as of January 1, 2024	$ 46,101	10,195	56,296
Balance as of June 30, 2024	$ 46,101	10,022	56,123

There were no significant addition, disposal, or recognition and reversal of impairment losses of investment property for the six months ended June 30, 2025 and 2024. For other relevant information, please refer to notes 6(l) of the consolidated financial statement of 2024.

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The fair value of the investment property was not significantly different from those disclosed in note 6(l) of the annual consolidated financial statements for the year ended December 31, 2024.

None of the investment property was pledged as collateral as of June 30, 2025, December 31 and June 30, 2024.

(m) Intangible assets

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

	Technical royalty	Computer software	Total
Carrying value:
Balance as of January 1, 2025	$ 3,249	482	3,731
Balance as of June 30, 2025	$ 2,762	351	3,113
Balance as of January 1, 2024	$ 4,224	1,172	5,396
Balance as of June 30, 2024	$ 3,737	797	4,534

There were no significant addition, disposal, or recognition and reversal of impairment losses of intangible assets for the six months ended June 30, 2025 and 2024. For other relevant information, please refer to notes 6(m) of the consolidated financial statement of 2024.

(n) Other long-term investment, net

	June 30, 2025	December 31, 2024	June 30, 2024
Construction and operation of student dormitory	$ 21,363	24,986	26,125

The period of rights of investment in construction and operation of student dormitory is 30 years. The subsidy and management income will be recovered annually according to the agreement to July 31, 2035.

(o) Other non-current assets

	June 30, 2025	December 31, 2024	June 30, 2024
Long-term prepaid rents	$ 54,144	19,736	20,630
Net defined benefit assets	7,736	7,736	6,487
	$ 61,880	27,472	27,117

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(p) Short-term borrowings

Short-term borrowings of the Group were as follows:

	June 30, 2025	December 31, 2024	June 30, 2024
Unsecured bank loans	$ 450,000	400,000	450,000
Secured bank loans	907,500	892,500	742,500
Total	$ 1,357,500	1,292,500	1,192,500
Unused short-term credit lines	$ 852,500	744,507	1,096,500
Range of interest rate	1.85%~2.125%	1.85%~2.125%	1.86%~2.22%

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

(q) Other payables

Other payables of the Group were as follows:

	June 30, 2025	December 31, 2024	June 30, 2024
Accrued payroll	$ 6,128	29,588	6,589
Employee bonus payable	443	800	789
Compensation payable to directors	179	179	113
Compensated absences	14,644	14,588	14,917
Other accrued expenses payable	54,747	56,101	54,318
Payables on equipment	3,954	5,180	5,257
Dividends payable	452	452	32,484
Other payables – other	7,594	9,395	8,477
Total	$ 88,141	116,283	122,944

(r) Long-term borrowings

Long-term borrowings of the Group were as follows:

	June 30, 2025
	Currency	Range of interest rate	Due year	Amount
Secured bank loans	NTD	2.385%	2030	$ 47,780
Less: current portion				8,682
Total				$ 39,098
Unused long-term credit lines				$ 39,920

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

	December 31, 2024
	Currency	Range of interest rate	Due year	Amount
Secured bank loans	NTD	2.385%	2030	$ 52,070
Less: current portion				8,631
Total				$ 43,439
Unused long-term credit lines				$ 35,630
	June 30, 2024
	Currency	Range of interest rate	Due year	Amount
Secured bank loans	NTD	2.385%	2030	$ 56,309
Less: current portion				8,529
Total				$ 47,780
Unused long-term credit lines				$ 31,391

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

(s) Lease liabilities

Lease liabilities of the Group were as follows:

	June 30, 2025	December 31, 2024	June 30, 2024
Current	$ 3,395	5,221	6,497
Non-current	$ 6,979	6,919	8,819

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

The amounts recognized in profit or loss were as follows:

	For the three months ended June 30		For the six months ended June 30
	2025	2024	2025	2024
Interest on lease liabilities	$ 72	88	151	185
Expenses relating to short-term leases	$ 104	43	276	117
Expenses relating to leases of low-value assets, excluding short-term leases of low-value assets	$ 129	85	287	210

The amounts recognized in the statements of cash flows were as follows:

	For the six months ended June 30
	2025	2024
Total cash outflow for leases	$ 4,119	4,407

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(t) Employee benefits

(i) Defined benefit plans

Management believes that there was no material volatility of the market, no material reimbursement and settlement or other material one-time events since prior fiscal year. As a result, the pension cost in the accompanying interim period was measured and disclosed according to the actuarial report as of December 31, 2024 and 2023.

The expenses recognized in profit or loss for the Group were as follows:

	For the three months ended June 30		For the six months ended June 30
	2025	2024	2025	2024
Operating cost	$ 217	229	435	458
Operating expenses	72	81	144	162
Total	$ 289	310	579	620

(ii) Defined contribution plans

The Group’s expenses under the pension plan cost to Bureau of Labor Insurance were as follows:

	For the three months ended June 30		For the six months ended June 30
	2025	2024	2025	2024
Operating cost	$ 2,004	1,997	4,067	4,047
Operating expenses	678	718	1,360	1,449
Total	$ 2,682	2,715	5,427	5,496

(u) Income tax

The components of income tax expense (benefit) of the Group were as follows:

	For the three months ended June 30		For the six months ended June 30
	2025	2024	2025	2024
Current income tax expense (benefit)
Current period	$ (778)	(663)	1,815	987
Deferred income tax benefit
Origination and reversal of temporary difference	(155)	(3,235)	(41,134)	(13,737)
Income tax benefit	$ (933)	(3,898)	(39,319)	(12,750)

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

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(v) Capital and other equity

Except for the following disclosure, there was no significant change for capital and other equity for the six months ended June 30, 2025 and 2024. Please refer to note 6(v) of the consolidated financial statements for the year ended December 31, 2024.

(i) Capital surplus

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

	June 30, 2025	December 31, 2024	June 30, 2024
Difference arising from subsidiary’s share price and its carrying value	$ 8,953	8,953	8,953
Changes in ownership interests in subsidiaries	79,165	79,165	26,300
Changes in equity of investments in associates using equity method	7,815	7,815	6,745
Treasury share transactions	4,430	4,430	4,430
Donation from shareholders	13	13	13
Recovery of expired unclaimed dividends	34,806	29,287	29,287
Total	$ 135,182	129,663	75,728

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

(ii) 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.

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

1) 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.

2) Earnings distribution

On May 28, 2025, the shareholder's meeting resolved not to distribute the 2024 earnings. On May 31, 2024, the shareholder's meeting resolved not to distribute the 2023 earnings.

(iii) Other equity

	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	(36,419)	-	(36,419)
Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income	-	(27,863)	(27,863)
Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income on associates and joint ventures accounted for using equity method	-	(57,826)	(57,826)
Cumulative losses (gains) reclassified to retained earnings on disposal of investments in equity instruments designated at fair value through other comprehensive income	-	3,391	3,391
Cumulative losses (gains) reclassified to retained earnings on associates disposal of investments in equity instruments designated at fair value through other comprehensive income	-	(7,906)	(7,906)
Balance as of June 30, 2025	$ (4,911)	1,168,758	1,163,847

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

	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, 2024	$ (8,216)	763,338	755,122
Exchange differences on foreign operations	742	-	742
Losses (gains) on disposal of foreign operating institutions reclassified to profit or loss	4,409	-	4,409
Losses (gains) on associates disposal of foreign operating institutions reclassified to profit or loss	552	-	552
Exchange differences on associates and joint ventures accounted for using equity method	23,885	-	23,885
Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income	-	93,623	93,623
Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income on associates and joint ventures accounted for using equity method	-	25,656	25,656
Cumulative losses (gains) reclassified to retained earnings on associates disposal of investments in equity instruments designated at fair value through other comprehensive income	-	(42,003)	(42,003)
Balance as of June 30, 2024	$ 21,372	840,614	861,986

(w) Earnings (Loss) per share

The Group’s basic loss per share and diluted loss per share were calculated as follows:

	For the three months ended June 30		For the six months ended June 30
	2025	2024	2025	2024
(Loss) income attributable to the Company	$ (192,546)	5,362	(372,093)	(27,503)
Weighted-average number of ordinary shares outstanding	527,870	527,870	527,870	527,870
Basic and diluted (losses) earnings per share (NTD)	$ (0.36)	0.01	(0.70)	(0.05)

There were no dilutive potential ordinary shares for the Group.

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(x) Revenue from contracts with customers

(i) Disaggregation of revenue

	For the three months ended June 30		For the six months ended June 30
	2025	2024	2025	2024
Primary geographical markets:
Asia	$ 2,420,302	3,420,637	4,749,164	5,624,158
America	-	-	-	10,515
Europe	4,237	-	4,237	8,600
Total	$ 2,424,539	3,420,637	4,753,401	5,643,273
Major products/services lines:
Commodity sales revenue	$ 2,391,601	3,391,438	4,672,382	5,567,116
Travel service revenue	29,687	28,631	77,235	71,607
Other operating revenue	3,251	568	3,784	4,550
Total	$ 2,424,539	3,420,637	4,753,401	5,643,273

(ii) Contract balances

	December 31,
	June 30, 2025	2024	June 30, 2024
Contract liabilities-travel service contract	$ 34,991	42,641	35,644
Contract liabilities-unearned sales revenue	4,211	-	3,795
Total	$ 39,202	42,641	39,439

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

The amount of revenue recognized for the three months and six months ended June 30, 2025 and 2024, that were included in the contract liability balance at the beginning of the period were $2,195 thousand, $1,329 thousand, $4,321 and $5,985 thousand, respectively.

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 AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(y) Non-operating income and expenses

(i) Other income

Details of other income of the Group were as follows:

	For the three months ended June 30		For the six months ended June 30
	2025	2024	2025	2024
Rental income	$ 220	218	440	557
Dividend income	9,194	7,290	9,198	13,210
Others	5,882	2,500	7,548	3,976
Total	$ 15,296	10,008	17,186	17,743

(ii) Other gains and losses

	For the three months ended June 30		For the six months ended June 30
	2025	2024	2025	2024
Foreign exchange loss	$ (31,167)	(2,808)	(25,595)	(6,440)
Losses on disposals of investments	-	(2,984)	-	(2,984)
Gains (losses) on financial assets at fair value through profit or loss	3,244	75,407	(4,743)	118,623
Reversal of impairment loss	151	141	151	141
Gains on lease modification	-	-	26	27
Others	-	-	(4)	-
Total	$ (27,772)	69,756	(30,165)	109,367

(iii) Finance costs

	For the three months ended June 30		For the six months ended June 30
	2025	2024	2025	2024
Interest expense	$ 6,888	5,307	13,380	11,208

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(z) Remunerations to employees and directors

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 and supervisors.

For the six months ended June 30, 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 six months ended June 30, 2025 and 2024, 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.

(aa) Financial instruments

Except for the contention mentioned below, there was no significant change in the fair value of the Group’s financial instruments and degree of exposure to credit risk, liquidity risk and market risk arising from financial instruments. For the related information, please refer to note 6(aa) of the consolidated financial statements for the year ended December 31, 2024.

(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 June 30, 2025, December 31 and June 30, 2024, the Group reviewed the concentrations of credit risk arising from the major top ten customers, and it was 95%, 91% and 95%, respectively, of the total accounts receivable. The concentrations of credit risk of the remaining accounts receivable are relatively small.

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

3) Credit risk of receivables

For credit risk exposure of trade receivables, please refer to note 6(c). Other financial assets at amortized cost include time deposits and other receivables, etc. The allowance for receivables in the financial assets is measured by the amount of lifetime expected credit losses. The remaining financial assets are measured by the amount of 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
June 30, 2025
Non-derivative financial liabilities
Short-term borrowings	$ 1,357,500	1,365,277	1,365,277	-	-	-
Payables	692,568	692,568	692,568	-	-	-
Long-term borrowings	47,780	50,850	9,778	9,778	29,335	1,959
Guarantee deposits	650	650	350	300	-	-
Lease liabilities	10,374	11,580	3,628	2,561	1,768	3,623
	$ 2,108,872	2,120,925	2,071,601	12,639	31,103	5,582
December 31, 2024
Non-derivative financial liabilities
Short-term borrowings	$ 1,292,500	1,295,131	1,295,131	-	-	-
Payables	880,168	880,168	880,168	-	-	-
Long-term borrowings	52,070	55,742	9,779	9,779	29,336	6,848
Guarantee deposits	650	650	350	300	-	-
Lease liabilities	12,140	12,794	5,413	2,312	2,241	2,828
	$ 2,237,528	2,244,485	2,190,841	12,391	31,577	9,676
June 30, 2024
Non-derivative financial liabilities
Short-term borrowings	$ 1,192,500	1,195,289	1,195,289	-	-	-
Payables	1,416,131	1,416,131	1,416,131	-	-	-
Long-term borrowings	56,309	60,628	9,778	9,778	29,335	11,737
Guarantee deposits	650	650	-	-	300	350
Lease liabilities	15,316	16,119	6,756	3,303	3,231	2,829
	$ 2,680,906	2,688,817	2,627,954	13,081	32,866	14,916

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

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(iii) Market risk

1) Currency risk

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

	June 30, 2025			December 31, 2024			June 30, 2024
	Foreign currency	Exchange rate	NTD	Foreign currency	Exchange rate	NTD	Foreign currency	Exchange rate	NTD
Financial assets
Monetary items
USD	$ 11,396	29.300	333,903	15,427	32.785	505,774	14,689	32.450	476,658
CNY	9	4.093	37	2,292	4.561	10,454	470	4.553	2,140
Financial liabilities
Monetary items
USD	5,549	29.300	162,586	6,353	32.785	208,283	7,237	32.450	234,841

The Group’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, other financial assets, accounts payable and other payables that are denominated in foreign currency. A weakening (strengthening) of 1% of the NTD against the USD and CNY as of June 30, 2025 and 2024, would have increased/decreased net loss before tax by $1,714 thousand and $2,440 thousand for the six months ended June 30, 2025 and 2024, respectively. The analysis is performed on the same basis.

Since the Group has many kinds of functional currency, the information on foreign exchange gain (loss) on monetary items is disclosed by total amount. For the six months ended June 30, 2025 and 2024, foreign exchange loss (including realized and unrealized portions) amounted to $25,595 thousand and $6,440 thousand, respectively.

2) Interest rate risk

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

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

If the interest rate had increased/decreased by 1%, the Group’s loss before tax would have decreased/increased by $7,026 thousand and $6,244 thousand for the six months ended June 30, 2025 and 2024, respectively, with all other variable factors remaining constant. This is mainly due to the Group’s loan at variable rates.

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

3) Other market price risk

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

	For the six months ended June 30
	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%	$ 14,678	2,834	13,241	3,743
Decreasing 1%	$ (14,678)	(2,834)	(13,241)	(3,743)

(iv) Fair value information

1) Types and fair value of financial instruments

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

	June 30, 2025
	Book value	Fair value
		Level 1	Level 2	Level 3	Total
Financial assets at fair value through profit or loss:
Financial assets mandatorily at fair value through profit or loss:
Listed stocks	$ 279,611	279,611	-	-	279,611
Funds	3,758	3,758	-	-	3,758
Financial assets at fair value through other comprehensive income:
Domestic and foreign non-listed stocks	1,467,767	-	-	1,467,767	1,467,767
Total	$ 1,751,136	283,369	-	1,467,767	1,751,136

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated 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:
Financial assets mandatorily at fair value through profit or loss:
Listed stocks	$ 266,426	266,426	-	-	266,426
Funds	4,297	4,297	-	-	4,297
Financial assets at fair value through other comprehensive income:
Domestic and foreign non-listed stocks	1,526,257	-	-	1,526,257	1,526,257
Total	$ 1,796,980	270,723	-	1,526,257	1,796,980
	June 30, 2024
	Book value	Fair value
		Level 1	Level 2	Level 3	Total
Financial assets at fair value through profit or loss:
Financial assets mandatorily at fair value through profit or loss:
Listed stocks	$ 345,782	345,782	-	-	345,782
Funds	28,499	28,499	-	-	28,499
Financial assets at fair value through other comprehensive income:
Domestic and foreign non-listed stocks	1,324,124	-	-	1,324,124	1,324,124
Total	$ 1,698,405	374,281	-	1,324,124	1,698,405

2) Valuation techniques for financial instruments measured at fair value

A. Non-derivative financial instruments

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

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

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

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

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

B. Derivative financial instruments

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

3) Transfers between Level 1 and Level 2

There were no transfers for the six months ended June 30, 2025 and 2024.

4) Reconciliation of Level 3 fair values

	Fair value through other comprehensive income
	Unquoted equity instruments
Opening balance, January 1, 2025	$ 1,526,257
Total gains and losses recognized
Other comprehensive income	(27,863)
Disposal	(13)
Effect of exchange rate changes	(30,614)
Ending Balance, June 30, 2025	$ 1,467,767
Opening balance, January 1, 2024	$ 1,217,382
Total gains and losses recognized
Other comprehensive income	93,623
Capital reduction by cash	(1,210)
Effect of exchange rate changes	14,329
Ending Balance, June 30, 2024	$ 1,324,124

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

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 June 30, 2025 and 2024 were as follows:

	For the three months ended June 30		For the six months ended June 30
	2025	2024	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”$	1,649	36,529	(27,863)	93,623

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

The Group’s financial instruments that use Level 3 inputs to measure fair value include financial assets measured at fair value through other comprehensive income-equity investments.

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

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 method (Comparable company method)	Price to book ratio (0.91~2, 1.12~1.90 and 1.14~2.10 as of June 30, 2025, December 31 and June 30, 2024, respectively)	The fair value would increase if price to book ratio increase
		Lack of market liquidity discount (15%~30%, 20%~30% and 10%~30% as of June 30, 2025 and December 31, 2024; as of June 30, 2024)	The fair value would decrease if lack of market liquidity discount increase

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Item	Valuation technique	Significant unobservable inputs	Inter-relationship between significant unobservable inputs and fair value measurement
	Net asset value method	Net Asset Value	The estimated fair value would increase if the net asset value increase

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

The fair value measurement of financial instruments by the Group 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
June 30, 2025
Financial assets at fair value through other comprehensive income	Price to book ratio	10%	$ 3,423	(3,423)
	Liquidity discount	10%	37,984	(37,984)
December 31, 2024
Financial assets at fair value through other comprehensive income	Price to book ratio	10%	4,047	(4,047)
	Liquidity discount	10%	37,943	(37,943)
June 30, 2024
Financial assets at fair value through other comprehensive income	Price to book ratio	10%	5,542	(5,542)
	Liquidity discount	10%	33,751	(33,751)

The favorable and unfavorable changes of the Group 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.

(ab) Financial risk management

There were no significant changes in the Group’s financial risk management and policies as disclosed in note 6(ab) of the consolidated financial statements for the year ended December 31, 2024.

(ac) Capital management

Management believes that the objectives, policies and processes of capital management of the Group has been applied consistently with those described in the consolidated financial statements for the year ended December 31, 2024. Please refer to note 6(ac) of the consolidated financial statements for the year ended December 31, 2024 for further details.

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(ad) Investing and financing activities not affecting current cash flows

The Group's investing and financing activities which did not affect the current cash flow in the six months ended June 30, 2025 and 2024 are as follows:

(i) The Group had unpaid $3,954 thousand and $5,257 thousand for the acquisition of property, plant, and equipment for the six months ended June 30, 2025 and 2024, respectively. Please refer to Note 6(q) for details.

(ii) Reconciliation of liabilities arising from non-cash financing activities for the six months ended June 30, 2025 and 2024 were as follows:

	Non-cash changes				June 30, 2025
	January 1, 2025	Cash flows	Lease modification	Additions
Lease liabilities	$ 12,140	(3,405)	1,003	636	10,374
	Non-cash changes				June 30, 2024
	January 1, 2024	Cash flows	Lease modification	Additions
Lease liabilities	$ 19,116	(3,895)	95	-	15,316

(7) Related-party transactions

(a) Names and relationship with related parties

Name of related party	Relationship with the Company
Eastern Broadcasting Co., Ltd.	A substantive related party
Tien Lai Co., Ltd.	The entity which is significantly influenced by the Group (Note)

Note: Since April 1, 2024, the Group has lost control over Tianlai Industries Co., Ltd., and the related party transactions between the Group and Tien Lai Co., Ltd. during January 1, 2024 to March 31, 2024 have been eliminated.

(b) Significant transactions with related parties

(i) Receivables from related parties

Receivables from the related parties were as follows:

Accounts	Types of related parties	June 30, 2025	December 31, 2024	June 30, 2024
Other receivables	Eastern Broadcasting Co., Ltd.	$ 83	83	83

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(ii) Payables to related parties

Accounts	Types of related parties	June 30, 2025	December 31, 2024	June 30, 2024
Other payables	Tien Lai Co., Ltd.	$ 682	601	595

(iii) Service costs

The Group has entrusted related parties to provide services, the details are as follows:

	For the three months ended June 30		For the six months ended June 30
	2025	2024	2025	2024
Tien Lai Co., Ltd.	$ 985	834	1,826	834

	For the three months ended June 30		For the six months ended June 30
	2025	2024	2025	2024
Short-term employee benefits	$ 8,933	10,633	18,633	20,215
Post-employment benefits	329	323	657	661
	$ 9,262	10,956	19,290	20,876

(8) Assets pledged as security

The carrying amounts of pledged assets were as follows:

Pledged assets	Object	June 30, 2025	December 31, 2024	June 30, 2024
Cash in banks (other financial assets)	Performance guarantee	$ 7,965	13,860	6,755
Land, buildings and structures	Borrowings	1,354,309	1,359,446	1,364,582
		$ 1,362,274	1,373,306	1,371,337

(9) Commitments and contingencies

(a) Letter of credit issued but not expired

	June 30, 2025	December 31, 2024	June 30, 2024
Letter of credit outstanding for the import of raw materials	$ 938,000	1,472,993	1,887,455 (including USD3,255 thousand)

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(10) Losses due to major disasters: None.
(11) Subsequent events: None.
(12) Other

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

	For the three months ended June 30
By Function	2025			2024
	Operating cost	Operating expense	Total	Operating cost	Operating expense	Total
By item
Employee benefits
Salary	$ 37,878	15,267	53,145	37,434	16,414	53,848
Labor and health insurance	4,284	1,150	5,434	4,249	1,237	5,486
Pension	2,221	750	2,971	2,226	799	3,025
Others	2,770	2,759	5,529	2,752	4,065	6,817
Depreciation	65,219	2,800	68,019	65,338	2,889	68,227
Amortization	309	-	309	383	45	428
	For the six months ended June 30
---	---	---	---	---	---	---
By Function	2025			2024
	Operating cost	Operating expense	Total	Operating cost	Operating expense	Total
By item
Employee benefits
Salary	$ 79,527	31,148	110,675	77,854	33,423	111,277
Labor and health insurance	8,715	2,312	11,027	8,675	2,534	11,209
Pension	4,502	1,504	6,006	4,505	1,611	6,116
Others	5,465	5,162	10,627	5,573	6,942	12,515
Depreciation	130,677	5,619	136,296	131,180	5,770	136,950
Amortization	618	-	618	770	92	862

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

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 Group for the six months ended June 30, 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):

(in Thousands of New Taiwan Dollars)

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	215,000	31,390	0.09 %	31,390
The Company	SOLAR APPLIED MATERIALS TECHNOLOGY CORP.	-	Current financial assets at fair value through profit or loss	832,000	45,178	0.14 %	45,178
The Company	Global Investment Holding Co., Ltd	-	Non-current investment in equity instrument at FVOCI	10,233,608	85,103	6.03 %	85,103
The Company	Yuan-Jie Investment Co., Ltd.	-	Non-current investment in equity instrument at FVOCI	21,000,000	439,190	19.09 %	439,190
The Company	Yu-Jie Investment Co., Ltd.	-	Non-current investment in equity instrument at FVOCI	21,320,000	527,830	19.38 %	527,830
YSIC Ltd.	Senao Networks Inc.	-	Current financial assets at fair value through profit or loss	100,000	17,200	0.17 %	17,200
YSIC Ltd.	Global Unichip Corp.	-	Current financial assets at fair value through profit or loss	15,000	19,575	0.01 %	19,575
YSIC Ltd.	Realtek Semiconductor Corporation	-	Current financial assets at fair value through profit or loss	25,000	14,175	- %	14,175
YSIC Ltd.	Asia Vital Components Co., Ltd.	-	Current financial assets at fair value through profit or loss	20,000	14,860	0.01 %	14,860
YSIC Ltd.	Taiwan Semiconductor Manufacturing Co., Ltd.	-	Current financial assets at fair value through profit or loss	20,000	21,200	- %	21,200
YSIC Ltd.	Chunghwa Precision Test Tech. Co., Ltd.	-	Current financial assets at fair value through profit or loss	20,000	16,740	0.06 %	16,740
YSIC Ltd.	CIW INTERNATIONAL CO., LTD.	-	Current financial assets at fair value through profit or loss	676,413	4,194	0.50 %	4,194
Grand Capital Co., Ltd.	Deng Yun Co., Ltd.	-	Non-current investment in equity instrument at FVOCI	3,082,453	257,658	16.10 %	257,658

(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

(vi) Significant transactions and business relationship between the parent company and its subsidiaries for the year ended June 30, 2025: None

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements

(b) Information on investees:

The following is the information on investees for the six months ended June 30, 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 June 30, 2025			Net income (hones) of investee	Share of profits/hones of investee	Note
				June 30, 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 %	468,355	(31,563)	(7,891)
The Company	Wonderland Enterprise Co., Ltd.	Taiwan	General investment business	325,230	325,230	29,629,597	37.04 %	1,577,700	(3,092)	(1,145)
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 %	33,346	4,400	1,538
The Company	Universal Investments Limited	British Cayman Islands	Real estate investment business	17,273	17,273	80	40.00 %	15,560	(1,095)	(550)
The Company	VISC Ltd.	Taiwan	General investment, residential building and industrial plant development rental business	1,418,199	1,638,169	50,449,923	99.99 %	765,734	(17,990)	(17,987)	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 %	51,013	(716)	(716)	Subsidiary
The Company	Yangmingshan Tian Lai Resort & SPA	Taiwan	General hotel industry	630,555	630,555	25,865,618	65.07 %	691,841	2,059	183	Subsidiary
VISC Ltd.	Kun Shan International Ltd.	Seychelles	General investment business	-	-	100,000	100.00 %	37,370	2,691	2,691	Subsidiary
VISC Ltd.	Grand Capital Co., Ltd.	Seychelles	General investment business	90,182	90,182	2,698,002	100.00 %	259,267	33	33	Subsidiary
VISC Ltd.	Yangmingshan Tian Lai Resort & SPA	Taiwan	General hotel industry	110,836	110,836	4,807,774	12.10 %	118,508	2,059	69	Subsidiary
VISC Ltd.	Tien Lai Co., Ltd.	Taiwan	Pipe Lines Construction	5,000	5,000	267,000	19.78 %	1,796	555	110
Yangmingshan Tian Lai Resort & SPA	Tien Lai Co., Ltd.	Taiwan	Pipe Lines Construction	4,080	4,080	408,000	30.22 %	4,795	555	168

(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 June 30, 2025	Net income (hones) of the investee (Note 2)	Percentage of ownership	Investment income (hones)	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	2,950 (USD 100)	(2)	2,950 (USD 100)	-	-	2,950 (USD 100)	3,533 (USD 111)	100.00 %	3,533	18,766	80,707

Note1: 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.
Note2: 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 = NTD29.30, USD1 = NTD31.8875).
Note3: Kun Shan Yu-Fu Technology Education Consulting Co., Ltd. had been spun-off as Kun Shan Yu-Fu Technology Education Consulting Co., Ltd. and Kun Shan Jia-An Technology Education Consulting Co., Ltd. Kun Shan Jia-An Technology Education Consulting Co., Ltd. completed liquidation in February 2024.

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(ii) Upper limit on investment in Mainland China:

Accumulated Investment in Mainland China as of June 30, 2025	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment (Note)
2,930
(USD 100)	2,930
(USD 100)	459,505

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:

(a) General information

(i) Plasticization segment: manufacturing and domestic/international sales of styrene monomer, manufacturing and sales of chemical materials and plastic materials.

(ii) Investment segment: investment business.

(iii) Other segment: the revenues of the segments that have not reached the quantitative threshold are hotel and general service business.

(b) The Group’s operating segment information and reconciliation are as follows:

	For the three months ended June 30, 2025
	Plasticization segment	Investment segment	Other segments	Reconciliation and elimination	Total
Revenue
Revenue from external customers	$ 2,391,601	25,083	29,687	-	2,446,371
Intersegments revenues	-	(513)	14	499	-
Total revenue	$ 2,391,601	24,570	29,701	499	2,446,371
Reportable segment profit or loss	$ (192,493)	13,770	(4,782)	(10,851)	(194,356)
	For the three months ended June 30, 2024
	Plasticization segment	Investment segment	Other segments	Reconciliation and elimination	Total
Revenue
Revenue from external customers	$ 3,391,438	12,836	28,632	-	3,432,906
Intersegments revenues	-	(876)	82	794	-
Total revenue	$ 3,391,438	11,960	28,714	794	3,432,906
Reportable segment profit or loss	$ 5,103	2,526	(7,869)	(1,385)	(1,625)

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

	For the six months ended June 30, 2025
	Plasticization segment	Investment segment	Other segments	Reconciliation and elimination	Total
Revenue
Revenue from external customers	$ 4,672,382	(9,534)	77,235	-	4,740,083
Inter-segment revenues	-	155	18	(173)	-
Total revenue	$ 4,672,382	(9,379)	77,253	(173)	4,740,083
Reportable segment profit or loss	$ (413,943)	(16,689)	2,574	17,114	(410,944)
	For the six months ended June 30, 2024
	Plasticization segment	Investment segment	Other segments	Reconciliation and elimination	Total
Revenue
Revenue from external customers	$ 5,567,116	19,665	72,329	-	5,659,110
Inter-segment revenues	-	(514)	1,088	(574)	-
Total revenue	$ 5,567,116	19,151	73,417	(574)	5,659,110
Reportable segment profit or loss	$ (35,851)	353	(3,536)	(5,340)	(44,374)

AI assistant

T.S.M.C. — Interim / Quarterly Report 2025

51769_rns_2025-11-12_2df0e1cf-9a3f-4b17-9e91-2b0ea2b192c9.pdf

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Table of contents

Independent Auditors' Review Report

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

Notes to Readers

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

June 30, 2025, December 31 and June 30, 2024

(Expressed in Thousands of New Taiwan Dollars)

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

For the six months ended June 30, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows (Continued)

For the six months ended June 30, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(4) Summary of material accounting policies

(a) Statement of compliance

(b) Basis of consolidation

(i) List of subsidiaries in the consolidated financial statements:

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(k) Right-of-use assets

(l) Investment property

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(w) Earnings (Loss) per share

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

T.S.M.C. Interim / Quarterly Report 2025