TSRC — Audit Report / Information 2025

Apr 14, 2026

TSRC Corporation

Financial Statements for the
Years Ended December 31, 2025 and 2024 and
Independent Auditors’ Report

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Deloitte.

勤業眾信

勤業眾信聯合會計師事務所

110421 台北市信義區松仁路100號20樓

Deloitte & Touche

20F, Taipei Nan Shan Plaza

No. 100, Songren Rd.,

Xinyi Dist., Taipei 110421, Taiwan

Tel: +886 (2) 2725-9988

Fax: +886 (2) 4051-6888

www.deloitte.com.tw

INDEPENDENT AUDITORS' REPORT

The Board of Directors and Shareholders
TSRC Corporation

Opinion

We have audited the accompanying parent company only financial statements of TSRC Corporation (the “Corporation”), which comprise the parent company only balance sheet as of December 31, 2025 and 2024, and the parent company only statement of comprehensive income, changes in equity and cash flows for the year then ended, and notes to the parent company only financial statements, including material accounting policy information (collectively referred to as the “parent company only financial statements”).

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

Basis for Opinion

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

Key Audit Matters

Key audit matter is the matter that, in our professional judgment, was of most significance in our audit of the parent company only financial statements for the year ended December 31, 2025. The matter was addressed in the context of our audit of the parent company only financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on the matter.

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The key audit matters for the audit of the financial statements of TSRC Corporation for the year ended 2025 are outlined as follows:

The Accuracy of the Recognition of Relocation Compensation Income from Subsidiaries

As of December 31, 2025, the carrying amount of investments accounted for using the equity method by TSRC Corporation amounted to NT$19,114,417 thousand, representing 67% of the total assets in the parent company only financial statements and thus considered material. Among them, the subsidiary Shen Hua Chemical Industries Co., Ltd. entered into a relocation compensation agreement on December 4, 2021 with the Nantong Economic and Technological Development Zone Chemical Industrial Park Administrative Office and Nantong Nengda Riverside Technology Innovation Park Development Co., Ltd. in response to local government development planning requirements. On the same date, the Company also signed a new plant investment agreement with the Nantong Economic and Technological Development Zone Chemical Industrial Park Administrative Office.

The total compensation amount under the agreement was RMB479,677 thousand. According to the terms of the agreement, Shen Hua Chemical Industries Co., Ltd. is required to deliver the land use rights of the original plant within the specified period, cease operations, relocate equipment, and invest in equipment for the new plant as part of the compensation arrangement.

As of December 31, 2025, Shen Hua Chemical Industries Co., Ltd. had received RMB407,725 thousand out of the total compensation amount of RMB479,677 thousand. After completing the acceptance of the new plant and equipment in 2025, the Company recognized the relocation compensation income under net other income and expenses.

As this transaction is material to the consolidated financial statements and the recognition of relocation compensation income involves significant management judgment, we have identified the recognition of such relocation compensation income as a key audit matter. For the related disclosures on relocation compensation income of the subsidiary, please refer to Note 24.

Key Audit Procedures Performed

1. Tested the design and operational effectiveness of internal controls related to the recognition of relocation compensation income.
2. Obtained the relocation compensation agreement and reviewed the relevant terms and conditions to understand the Shen Hua Chemical Industries Co., Ltd.'s rights and obligations in relation to the relocation compensation income.
3. Performed sample testing of transactions related to relocation compensation income and relocation expenditures, and verified whether the actual circumstances were reasonable.

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

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

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

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

Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statements

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

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

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

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

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

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

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

6. Obtain sufficient and appropriate audit evidence regarding the financial information of entities or business activities within the Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision, and performance of the Company audit. We remain solely responsible for our audit opinion.

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

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

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

The engagement partners on the audits resulting in this independent auditors’ report are Tza-Li Gung and Li-Yuan Kuo.

Deloitte & Touche
Taipei, Taiwan
Republic of China

March 5, 2026

Notice to Readers

The accompanying parent company only financial statements are intended only to present the financial position, financial performance and cash flows in accordance with 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 parent company only financial statements are those generally applied in the Republic of China.

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

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TSRC CORPORATION

BALANCE SHEETS

DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	2025		2024
ASSETS	Amount	%	Amount	%
CURRENT ASSETS
Cash (Note 6)	$ 72,692	-	$ 48,808	-
Financial assets at fair value through profit or loss - current (Note 7)	84	-	625	-
Accounts receivable, net (Note 8)	931,987	3	1,535,563	5
Accounts receivables from related parties (Notes 8 and 28)	66,422	-	155,239	1
Other receivables (Notes 8 and 28)	188,725	1	212,943	1
Inventories (Note 9)	1,976,441	7	2,095,798	7
Other current assets	80,438	1	84,922	-
Total current assets	3,316,789	12	4,133,898	14
NON-CURRENT ASSETS
Financial assets at fair value through other comprehensive income - non-current (Notes 10 and 28)	1,527,070	5	1,444,590	5
Investments accounted for under equity method (Note 11)	19,114,417	67	19,657,836	65
Property, plant and equipment (Notes 12 and 28)	2,973,423	10	2,965,084	10
Right-of-use assets (Note 13)	111,214	1	161,111	1
Investment property (Note 14)	1,493,247	5	1,507,972	5
Intangible assets (Notes 15 and 28)	104,302	-	141,981	-
Deferred income tax assets (Note 22)	105,710	-	95,455	-
Other non-current assets (Note 18)	23,988	-	70,294	-
Total non-current assets	25,453,371	88	26,044,323	86
TOTAL	$ 28,770,160	100	$ 30,178,221	100
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Short-term borrowings (Note 16)	$ 2,221,124	8	$ 1,952,683	7
Short-term bills payable (Note 16)	-	-	99,950	-
Accounts payable (Note 28)	685,720	2	1,150,553	4
Other payables (Note 28)	534,357	2	663,906	2
Current income tax liabilities (Note 22)	78,537	-	156,075	1
Provisions - current (Note 17)	11,360	-	-	-
Lease liabilities - current (Note 13)	45,435	-	46,985	-
Current portion of long-term borrowings (Note 16)	1,000,465	4	509,212	2
Other current liabilities	77,000	-	109,537	-
Total current liabilities	4,653,998	16	4,688,901	16
NON-CURRENT LIABILITIES
Long-term bank borrowings (Note 16)	2,590,476	9	3,090,941	10
Non-current income tax liabilities (Note 22)	37,245	-	28,831	-
Deferred income tax liabilities (Note 22)	1,446,757	5	1,655,015	6
Lease liabilities - non-current (Note 13)	68,080	1	115,839	-
Other non-current liabilities (Notes 11 and 25)	18,378	-	247,201	1
Total non-current liabilities	4,160,936	15	5,137,827	17
Total liabilities	8,814,934	31	9,826,728	33
EQUITY (Note 19)
Common stock	8,257,099	29	8,257,099	27
Capital surplus	57,766	-	57,219	-
Retained earnings
Legal reserve	4,821,403	16	4,713,729	16
Unappropriated earnings	4,565,624	16	4,807,066	16
Total retained earnings	9,387,027	32	9,520,795	32
Other equity	2,253,334	8	2,516,380	8
Total equity	19,955,226	69	20,351,493	67
TOTAL	$ 28,770,160	100	$ 30,178,221	100

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

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TSRC CORPORATION

STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

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

	2025		2024
	Amount	%	Amount	%
OPERATING REVENUE (Notes 20 and 28)	$ 10,642,764	100	$ 12,684,055	100
OPERATING COSTS (Notes 9, 21 and 28)	9,641,280	91	11,155,058	88
GROSS PROFIT	1,001,484	9	1,528,997	12
UNREALIZED LOSS ON TRANSACTIONS	(11,843)	-	(6,322)	-
OPERATING EXPENSES (Notes 8, 21 and 28)
Selling expenses	449,313	4	484,161	4
General and administrative expenses	570,369	5	623,897	5
Research and development expenses	280,242	3	280,113	2
Expected credit loss (reversed) on trade receivables	111	-	(367)	-
Total operating expenses	1,300,035	12	1,387,804	11
OTHER INCOME AND EXPENSES, NET (Notes 21 and 28)	167,680	2	236,509	2
OPERATING PROFIT (LOSS)	(119,028)	(1)	384,024	3
NON-OPERATING INCOME AND EXPENSES (Notes 15 and 21)
Interest income	2,965	-	4,035	-
Other income	87,920	1	131,859	1
Other gains and losses	(10,270)	-	3,066	-
Finance costs	(165,276)	(2)	(182,053)	(1)
Share of gain of subsidiaries, associates and joint ventures accounted for under equity method	472,209	4	871,641	7
Total non-operating income	387,548	3	828,548	7
PROFIT BEFORE INCOME TAX	268,520	2	1,212,572	10
INCOME TAX EXPENSE (BENEFIT) (Note 22)	(179,935)	(2)	350,307	3
NET PROFIT FOR THE YEAR	448,455	4	862,265	7
OTHER COMPREHENSIVE INCOME
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit plans (Note 18)	(475)	-	29,831	-
Unrealized gain (loss) on investments in equity instruments at fair value through other comprehensive income	82,480	1	(322,485)	(2)
Share of other comprehensive income of subsidiaries and associates	(7,787)	-	103,301	1
Income tax related to items that will not be reclassified subsequently to profit or loss (Note 22)	3,135	-	(102,847)	(1)
	77,353	1	(292,200)	(2)
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of the financial statements of foreign operations	(371,691)	(3)	816,686	6
Share of the other comprehensive income of subsidiaries and associates	12,589	-	4,077	-
	(359,102)	(3)	820,763	6
Other comprehensive (loss) income for the year, net of income tax	(281,749)	(2)	528,563	4
TOTAL COMPREHENSIVE INCOME FOR THE YEAR	$ 166,706	2	$ 1,390,828	11
EARNINGS PER SHARE (Note 23)
Basic	$ 0.54		$ 1.04
Diluted	$ 0.54		$ 1.04

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

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TSRC CORPORATION

STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	Common Stock	Capital Surplus	Retained Earnings			Total Other Equity Interest
			Legal Reserve	Unappropriated Retained Earnings	Total	Exchange Differences on Translation of the Financial Statements of Foreign Operations	Unrealized Gains (Losses) on Financial Assets Measured at Fair Value Through Other Comprehensive Income	Gain (Loss) on Hedging Instruments	Total
BALANCE ON JANUARY 1, 2024	$ 8,257,099	$ 179,833	$ 4,647,059	$ 4,135,538	$ 8,782,597	$ 274,823	$ 1,970,137	$ (42,669)	$ 2,202,291
Appropriation and distribution of retained earnings:
Legal reserve	-	-	66,670	(66,670)	-	-	-	-	-
Cash dividends	-	-	-	(338,541)	(338,541)	-	-	-	(338,541)
Cash dividends from capital surplus	-	(123,856)	-	-	-	-	-	-	(123,856)
Other changes in capital surplus	-	1,242	-	-	-	-	-	-	1,242
Net profit for the year ended December 31, 2024	-	-	-	862,265	862,265	-	-	-	862,265
Other comprehensive income (loss) for the year ended December 31, 2024, net of income tax	-	-	-	30,609	30,609	816,686	(322,809)	4,077	497,954
Total comprehensive income (loss) for the year ended December 31, 2024	-	-	-	892,874	892,874	816,686	(322,809)	4,077	497,954
Disposal of investments in equity instruments designated as at fair value through other comprehensive income	-	-	-	183,865	183,865	-	(183,865)	-	(183,865)
BALANCE ON DECEMBER 31, 2024	8,257,099	57,219	4,713,729	4,807,066	9,520,795	1,091,509	1,463,463	(38,592)	2,516,380
Appropriation and distribution of retained earnings:
Legal reserve	-	-	107,674	(107,674)	-	-	-	-	-
Cash dividends	-	-	-	(520,197)	(520,197)	-	-	-	(520,197)
Other changes in capital surplus	-	547	-	-	-	-	-	-	547
Net profit for the year ended December 31, 2025	-	-	-	448,455	448,455	-	-	-	448,455
Other comprehensive income (loss) for the year ended December 31, 2025, net of income tax	-	-	-	(380)	(380)	(371,691)	77,733	12,589	(281,369)
Total comprehensive income (loss) for the year ended December 31, 2025	-	-	-	448,075	448,075	(371,691)	77,733	12,589	(281,369)
Changes in ownership interests in subsidiaries	-	-	-	(61,646)	(61,646)	18,323	-	-	18,323
BALANCE AT DECEMBER 31, 2025	$ 8,257,099	$ 57,766	$ 4,821,403	$ 4,565,624	$ 9,387,027	$ 738,141	$ 1,541,196	$ (26,003)	$ 2,253,334

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

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TSRC CORPORATION

STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars)

	2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net income before tax	$ 268,520	$ 1,212,572
Adjustments for:
Depreciation	306,390	284,999
Amortization	32,350	27,255
Expected credit loss (reversed) on trade receivables	111	(367)
Finance costs	165,276	182,053
Interest income	(2,965)	(4,035)
Dividend income	(87,920)	(131,859)
Share of profit of subsidiary, associates and joint ventures accounted for using the equity method	(472,209)	(871,641)
Loss on disposal of property, plant and equipment	2,046	26,913
Transfer to operating costs and inventories	29,076	30,583
Impairment loss recognized on intangible assets	15,208	-
Unrealized loss on transactions	(11,843)	(6,322)
Changes in operating assets and liabilities:
Financial assets mandatorily measured at fair value through profit or loss	541	(625)
Accounts receivable	603,465	(485,767)
Accounts receivable from related parties	88,817	(68,843)
Other receivables	24,218	(14,554)
Inventories	119,357	(103,034)
Other current assets	4,484	31,556
Amortization of technical valuation (deferred credit)	(11,444)	(42,436)
Financial liabilities at fair value through profit or loss	-	(1,227)
Accounts payable	(464,833)	321,643
Other payables	(117,727)	31,089
Provisions	11,360	-
Other current liabilities	(32,537)	48,689
Net defined benefit assets	(2,079)	(2,623)
Other non-current liabilities	(67)	4,178
Cash flow generated from operating activities	467,595	468,197
Interest income received	2,965	4,035
Interest paid	(171,923)	(178,009)
Income taxes paid	(104,662)	(234,242)
Net cash flow generated from operating activities	193,975	59,981
		(Continued)

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TSRC CORPORATION

STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars)

	2025	2024
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of financial assets at fair value through other comprehensive income	$ -	$ 248,161
Payments for property, plant and equipment	(297,425)	(297,559)
Acquisition of intangible assets	-	(100,919)
Decrease in other non-current assets	48,005	2,347
Dividends received	487,867	654,099
Net cash flow generated from investing activities	238,447	506,129
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in short-term borrowings	16,805,200	17,610,846
Decrease in short-term borrowings	(16,536,759)	(17,594,454)
Increase in short-term commercial paper payable	792,000	2,727,000
Decrease in short-term commercial paper payable	(892,000)	(2,627,000)
Proceeds from long-term borrowings	500,265	1,135,593
Repayments of long-term borrowings	(509,477)	(1,377,267)
Repayments of lease liabilities	(48,038)	(49,505)
Cash dividends paid	(519,729)	(461,643)
Net cash flow used in financing activities	(408,538)	(636,430)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	23,884	(70,320)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR	48,808	119,128
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	$ 72,692	$ 48,808

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

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TSRC CORPORATION

NOTES TO FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

1. GENERAL INFORMATION

TSRC Corporation (formerly Taiwan Synthetic Rubber Corporation, hereinafter referred to as "the Corporation") was incorporated in the Republic of China (ROC) on November 22, 1973, as a corporation limited by shares in accordance with the ROC Company Act. In May 1999, Taiwan Synthetic Rubber Corporation was renamed TSRC Corporation and was approved by the shareholders in their meeting. In June 2016, the Corporation changed its registered address to No. 2, Singgong Rd., Dashe Dist., Kaohsiung City. The Corporation mainly manufactures, imports and sells various types of synthetic rubber and does import-export trades of related raw materials.

The financial statements of the Corporation are presented in the Corporation's functional currency, the New Taiwan dollar.

2. APPROVAL OF FINANCIAL STATEMENTS

The financial statements were approved by the Corporation's board of directors and were authorized for issue on March 5, 2026.

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

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

Amendments to IAS 21 "Lack of Exchangeability"

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

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

New, Amended and Revised Standards and Interpretations	Effective Date Announced by IASB
Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments”	January 1, 2026
Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”	January 1, 2026
Annual Improvements to IFRS Accounting Standards - Volume 11	January 1, 2026

As of the date the parent company only financial statements were authorized for issue, the Corporation assessed that the amendments to other standards are not expected to have a material impact on its financial position and financial performance.

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

New, Amended and Revised Standards and Interpretations	Effective Date Announced by IASB (Note 1)
Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture”	To be determined by IASB
IFRS 18 “Presentation and Disclosure in Financial Statements”	January 1, 2027 (Note 2)

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

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

IFRS 18 “Presentation and Disclosure in Financial Statements”

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

• Enhance the comparability of the statement of profit or loss: In the statement of profit or loss, income and expenses are classified into five categories: Operating, investing, financing, income tax, or discontinued operations to improve the structure of the statement of profit or loss, and all entities are required to provide newly defined subtotals. By enhancing the structure of the statement of profit or loss and introducing newly defined subtotals, investors will have a consistent starting point when analyzing financial performance across companies, making comparisons easier.

• Disclosures on Management-defined Performance Measures (MPMs): Introducing a definition for management performance measures, and requiring companies to explain in a single note to the financial statements why the measure provides useful information, how it is calculated and reconciling it to an amount determined under IFRS Accounting Standards.

• Enhanced aggregation of financial statement information: Provide guidance on summarizing or disaggregating financial information in the primary financial statements or notes.

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

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

a. Statement of compliance

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

b. Basis of preparation

The financial statements have been prepared on the historical cost basis except for financial instruments which are measured at fair value and net defined benefit liabilities which are measured at the present value of the defined benefit obligation less the fair value of plan assets.

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

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

c. Classification of current and non-current assets and liabilities

Current assets include:

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

Current liabilities include:

1) Liabilities held primarily for the purpose of trading;
2) Liabilities due to be settled within 12 months after the reporting period, even if an agreement to refinance, or to reschedule payments, on a long-term basis is completed after the reporting period and before the financial statements are authorized for issue; and
3) Liabilities for which the Corporation does not have the substantial right at the end of the reporting period to defer settlement for at least 12 months after the reporting period.

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

d. Foreign currencies

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

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

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

Non-monetary items denominated in a foreign currency and measured at historical cost is stated at the reporting currency as originally translated from the foreign currency.

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

e. Inventories

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

f. Investments in subsidiaries

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

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

Under the equity method, an investment in a subsidiary is initially recognized at cost and adjusted thereafter to recognize the Corporation's share of the profit or loss and other comprehensive income of the subsidiary. The Corporation also recognizes the changes in the Corporation's share of equity of subsidiaries.

Changes in the Corporation's ownership interest in a subsidiary that do not result in the Corporation losing control of the subsidiary are accounted for as equity transactions. The Corporation recognizes directly in equity any difference between the carrying amount of the investment and the fair value of the consideration paid or received.

When the Corporation's share of loss of a subsidiary exceeds its interest in that subsidiary (which includes any carrying amount of the investment accounted for using the equity method and long-term interests that, in substance, form part of the Corporation's net investment in the subsidiary), the Corporation continues recognizing its share of further loss, if any.

Unrealized profit or loss resulting from downstream transactions is eliminated in full only in the parent corporation only financial statements. Profit and loss resulting from upstream transactions and transactions between subsidiaries is recognized only in the parent corporation only financial statements and only to the extent of interests in the subsidiaries that are not related to the Corporation.

g. Property, plant and equipment

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

Property, plant and equipment in the course of construction are measured at cost, less any recognized impairment loss. Cost includes professional fees and borrowing costs eligible for capitalization. Such assets are depreciated and classified to the appropriate categories of property, plant and equipment when completed and ready for their intended use

Except for freehold land which is not depreciated, the depreciation of property, plant and equipment is recognized using the straight-line method. Each significant part is depreciated separately. The estimated useful lives, residual values and depreciation methods are reviewed at the end of each reporting period, with the effects of any changes in the estimates accounted for on a prospective basis.

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

h. Investment properties

Investment properties are properties held to earn rentals and/or for capital appreciation. Investment properties also include land held for a currently undetermined future use.

Freehold investment properties are initially measured at cost, including transaction costs. Subsequent to initial recognition, investment properties are measured at cost less accumulated depreciation and accumulated impairment loss.

Investment properties are depreciated using the straight-line method.

On derecognition of an investment property, the difference between the net disposal proceeds and the carrying amount of the asset is included in profit or loss.

i. Intangible assets

Intangible assets are initially measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment loss. Amortization is recognized on a straight-line basis. The estimated useful lives, residual values, and amortization methods are reviewed at the end of each reporting period, with the effect of any changes in the estimates accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are measured at cost less accumulated impairment loss.

When an intangible asset is derecognized, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss for the period.

j. Impairment of property, plant and equipment, right-of-use asset, investment properties and intangible assets

At the end of each reporting period, the Corporation reviews the carrying amounts of its property, plant and equipment, right-of-use asset, investment properties and intangible assets, excluding goodwill, to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Corporation estimates the recoverable amount of the cash-generating unit to which the asset belongs. Corporate assets are allocated to the individual cash-generating units on a reasonable and consistent basis of allocation.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually and whenever there is an indication that the assets may be impaired.

The recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount, with the resulting impairment loss recognized in profit or loss.

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

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k. Financial instruments

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

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

Financial assets

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

1) Measurement categories

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

a) Financial assets at FVTPL

Financial assets are classified as at FVTPL when such financial assets are mandatorily classified or designated as at FVTPL. The net gain or loss recognized in profit or loss does not incorporate any interest earned on such a financial asset.

b) Financial assets at amortized cost

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

i. The financial assets are held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and

ii. The contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Subsequent to initial recognition, financial assets at amortized cost, including cash and cash equivalents, notes receivable, account receivables, other receivables and refundable deposits, are measured at amortized cost, which equals the gross carrying amount determined using the effective interest method less any impairment loss.

c) Investments in equity instruments at FVTOCI

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

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

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

2) Impairment of financial assets and contract assets

At the end of each reporting period, a loss allowance for expected credit loss is recognized for financial assets at amortized cost (including accounts receivable) and for investments in debt instruments that are measured at FVTOCI.

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

The Corporation recognizes an impairment gain or loss in profit or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account.

3) Derecognition of financial assets

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

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

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Corporation are recognized at the proceeds received, net of direct issue costs.

Financial liabilities

1) Subsequent measurement

Except for financial liabilities at fair value through profit or loss, other financial liabilities are measured at amortized cost using the effective interest method.

Financial liabilities are classified as at FVTPL when such financial liabilities are either held for trading or are designated as at FVTPL.

Financial liabilities held for trading are stated at fair value, and any gains or losses on such financial liabilities are recognized in other gains or losses.

2) Derecognition of financial liabilities

The Corporation only derecognizes the financial liabilities when the obligation is lifted, cancelled or expired. The difference between a carrying amount of the financial liability derecognized and the consideration paid is recognized in profit or loss

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Derivative financial instruments

Derivative financial instruments are initially recognized at fair value at the date the derivative contracts are entered into and are subsequently remeasured to their fair value at the end of each reporting period.

1. Provisions

Provisions are measured at the best estimate of the discounted cash flows of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

In accordance with the Regulations Governing the Collection of Carbon Fees and related regulations, the carbon fee provision is recognized and measured on the basis of the best estimate of the expenditure required to settle the obligation for the current year.

m. Revenue recognition

Revenue from the sale of goods is derived from the manufacture and sale of various synthetic and non-synthetic rubbers. The entity recognizes revenue when control of the products is transferred to the customer. Control of the product is transferred when the product has been delivered to the customer, the significant risks and rewards of ownership have been transferred to the buyer, and the entity does not retain continuing managerial involvement to a degree usually associated with ownership or control over the goods sold. Delivery occurs when the products are shipped to a specified location, the risks of obsolescence and loss have been transferred to the customer, and the customer has accepted the products in accordance with the sales contract, or the entity has objective evidence that all criteria for acceptance have been satisfied.

The entity recognizes accounts receivable upon delivery of goods, as the entity has an unconditional right to consideration at that point in time.

n. Leases

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

1) The Corporation as lessor

Rental income from operating leases is recognized as income on a straight-line basis over the lease term.

2) The Corporation as lessee

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

Right-of-use assets are initially measured at cost less accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liabilities.

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

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

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

o. Employee benefits

1) Short-term employee benefits

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

2) Retirement benefits

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

Defined benefit costs (including service cost, net interest and remeasurement) under the defined benefit retirement benefit plans are determined using the projected unit credit method. Service cost (including current service cost, and net interest on the net defined benefit liabilities (assets) are recognized as employee benefits expense in the period in which they occur. Remeasurement, comprising actuarial gains and losses and returns on plan assets (excluding interest), is recognized in other comprehensive income in the period in which it occurs. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.

Net defined benefit liabilities (assets) represent the actual deficit (surplus) in the Corporation’s defined benefit plans.

p. Taxation

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

1) Current tax

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

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

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

2) Deferred tax

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

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Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences, unused loss carryforwards and unused tax credits for purchases of machinery, equipment and technology, to the extent that it is probable that taxable profit will be available against which those deductible temporary differences can be utilized.

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

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

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

3) Current and deferred taxes

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

1. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

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

Write-down of inventories

The Corporation assesses at the end of the reporting period, the amount of inventories that may be subject to normal loss, obsolescence, or lack of marketability, and writes down the cost of inventories to their net realizable value. The valuation of inventories is primarily based on the estimated product demand for a specific period in the future; therefore, it may be subject to significant changes.

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6. CASH

	December 31
	2025	2024
Checking accounts and demand deposits	$ 72,692	$ 48,808

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

	December 31
	2025	2024
Financial assets at FVTPL - current
Financial assets mandatorily classified as at FVTPL
Derivative financial assets (not under hedge accounting)
Foreign exchange forward contracts
Cross-currency swap contracts	$ 84	$ 625

At the end of the reporting period, foreign exchange forward contracts and cross-currency swap contracts not under hedge accounting were as follows:

	Currency	Maturity Date	Notional Amount (In Thousands)
December 31, 2025
Swap contracts	EUR/USD	2026.01.27-2026.02.26	EUR400/USD473
December 31, 2024
Sell (forward contracts)	EUR/USD	2025.01.24-2025.02.27	EUR850/USD898
Sell (forward contracts)	JPY/USD	2025.01.24-2025.02.27	JPY27,500/USD179
Swap contracts	EUR/USD	2025.01.24-2025.01.24	EUR250/USD266

The Corporation entered into foreign exchange forward contracts and cross-currency swap contracts to manage exposures to exchange rate fluctuations of foreign currency denominated assets and liabilities.

8. TRADE RECEIVABLES AND OTHER RECEIVABLES

	December 31
	2025	2024
Trade receivables
At amortized cost
Gross carrying amount	$ 932,154	$ 1,535,619
Less: Allowance for impairment loss	(167)	(56)
	$ 931,987	$ 1,535,563
		(Continued)

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	December 31
	2025	2024
Trade receivables from related parties
At amortized cost	$ 66,422	$ 155,239
Other receivables
Other receivables from related parties	$ 113,924	$ 107,698
Others	74,801	105,245
	$ 188,725	$ 212,943
		(Concluded)

The average credit period of sales of goods was 40 days. In order to minimize credit risk, the Corporation authorized a department to be responsible for determining credit limits, credit approvals, credit management and to manage other unusual risk to ensure that follow-up action is taken to recover overdue debts. In addition, the Corporation reviews the recoverable amount of each individual trade debt at the end of the reporting period to ensure that adequate allowance is made for possible irrecoverable amounts.

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

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

The following table details the loss allowance of notes receivables and trade receivables based on the Corporation's provision matrix.

December 31, 2025

	Not Past Due	Past Due Less than 3 Months	Past Due 3 to 6 Months	Past Due 6 Months - 1 Years	Past Due Over 1 Years	Total
Expected credit loss rate	0.00%	0.39%	-	-	-
Gross carrying amount	$ 960,628	$ 37,948	$ -	$ -	$ -	$ 998,576
Loss allowance (Lifetime ECLs)	(18)	(149)	-	-	-	(167)
Amortized cost	$ 960,610	$ 37,799	$ -	$ -	$ -	$ 998,409

December 31, 2024

	Not Past Due	Past Due Less than 3 Months	Past Due 3 to 6 Months	Past Due 6 Months - 1 Years	Past Due Over 1 Years	Total
Expected credit loss rate	0.00%	0.10%	-	-	-
Gross carrying amount	$ 1,643,639	$ 47,219	$ -	$ -	$ -	$ 1,690,858
Loss allowance (Lifetime ECLs)	(10)	(46)	-	-	-	(56)
Amortized cost	$ 1,643,629	$ 47,173	$ -	$ -	$ -	$ 1,690,802

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

	For the Year Ended December 31
	2025	2024
Balance on January 1	$ 56	$ 423
Impairment losses recognized (reversed) for the year	111	(367)
Balance on December 31	$ 167	$ 56

9. INVENTORIES

	December 31
	2025	2024
Finished goods	$ 1,434,996	$ 1,270,420
Work in progress	120,469	142,264
Raw materials	414,494	676,183
Goods	6,482	6,931
	$ 1,976,441	$ 2,095,798

The nature of the cost of goods sold is as follows:

	December 31
	2025	2024
Cost of inventories sold	$ 9,538,592	$ 11,086,933
Inventory write-downs	45,252	7,826
Income from sale of scrap	(33,074)	(26,046)
Unallocated production overhead	90,339	86,211
Others	171	134
	$ 9,641,280	$ 11,155,058

10. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

Investments in Equity Instruments at FVTOCI

	December 31
	2025	2024
Non-current
Investments in equity instruments
Domestic listed and emerging market shares	$ 1,173,497	$ 1,083,601
Domestic and foreign unlisted shares	353,573	360,989
	$ 1,527,070	$ 1,444,590

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

The entity adjusted its investment portfolio to diversify risk and sold ordinary shares of Hsin Jung Enterprise Co., Ltd. at a fair value of NT$248,161 thousand. The related unrealized valuation gain of NT$183,865 thousand, previously recognized in other equity under financial assets at fair value through other comprehensive income (FVTOCI), was reclassified to retained earnings for the year ended December 31, 2024.

11. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

	December 31
	2025	2024
Investments in subsidiaries	$ 19,114,417	$ 19,657,836
Investments in Subsidiaries
	December 31
	2025	2024
Trimurti Holding Corporation	$ 18,514,928	$ 18,775,558
Hardison International Corporation	465,715	718,726
Dymas Corporation	109,127	163,552
TSRC (Vietnam) Co., Ltd.	24,647	-
	$ 19,114,417	$ 19,657,836
Credit balance of investments accounted for using equity method transferred to other non-current liabilities	$ -	$ 228,756
Name of Subsidiary	Proportion of Ownership and Voting Rights
---	---	---
	December 31
	2025	2024
Trimurti Holding Corporation	100.00%	100.00%
Hardison International Corporation	100.00%	100.00%
Dymas Corporation	100.00%	100.00%
TSRC (Vietnam) Co., Ltd.	100.00%	100.00%

a. TSRC directly owns 19.48% of Dymas Corporation's equity and indirectly owns 80.52% via Hardison International Corporation, for a total of 100% directly and indirectly owned equity.
b. In March 2025, Dymas Corporation acquired 45.69% shares of TSRC (Vietnam) Co., Ltd., which issued ordinary shares for cash, and as a result, TSRC Corporation's direct ownership decreased from 100% to 54.31%, total directly and indirectly owns of equity are 100%.

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12. PROPERTY, PLANT AND EQUIPMENT

	Freehold Land and Land Improvements	Buildings	Machinery Equipment	Office and Other Equipment	Construction in Progress and Equipment under Installation	Total
Cost
Balance on January 1, 2025	$ 706,652	$ 1,227,919	$ 10,206,932	$ 113,290	$ 200,672	$ 12,455,465
Additions	-	-	-	-	294,771	294,771
Disposals	-	-	(76,771)	(1,505)	-	(78,276)
Reclassification	415	4,299	335,470	-	(350,063)	(9,879)
Balance on December 31, 2025	$ 707,067	$ 1,232,218	$ 10,465,631	$ 111,785	$ 145,380	$ 12,662,081
Accumulated depreciation and impairment
Balance on January 1, 2025	$ 80,296	$ 1,028,980	$ 8,277,610	$ 103,495	$ -	$ 9,490,381
Disposals	-	-	(74,725)	(1,505)	-	(76,230)
Depreciation expenses	2,605	19,479	249,231	3,192	-	274,507
Balance on December 31, 2025	$ 82,901	$ 1,048,459	$ 8,452,116	$ 105,182	$ -	$ 9,688,658
Carrying amounts on December 31, 2025	$ 624,166	$ 183,759	$ 2,013,515	$ 6,603	$ 145,380	$ 2,973,423
Cost
Balance on January 1, 2024	$ 704,834	$ 1,231,022	$ 9,732,709	$ 109,940	$ 652,201	$ 12,430,706
Additions	-	-	-	-	301,624	301,624
Disposals	-	(3,103)	(252,907)	(1,016)	-	(257,026)
Reclassification	1,818	-	727,130	4,366	(753,153)	(19,839)
Balance on December 31, 2024	$ 706,652	$ 1,227,919	$ 10,206,932	$ 113,290	$ 200,672	$ 12,455,465
Accumulated depreciation and impairment
Balance on January 1, 2024	$ 77,720	$ 1,011,258	$ 8,278,738	$ 99,625	$ -	$ 9,467,341
Disposals	-	(2,268)	(226,829)	(1,016)	-	(230,113)
Depreciation expenses	2,576	19,990	225,701	4,886	-	253,153
Balance on December 31, 2024	$ 80,296	$ 1,028,980	$ 8,277,610	$ 103,495	$ -	$ 9,490,381
Carrying amounts on December 31, 2024	$ 626,356	$ 198,939	$ 1,929,322	$ 9,795	$ 200,672	$ 2,965,084

No impairment losses were recognized or reversed in 2025 and 2024.

The above items of property, plant and equipment are depreciated over their estimated useful lives of the assets as follows:

Land improvements 7-30 years
Buildings 3-60 years
Machinery equipment 3-50 years
Office and other equipment 3-8 years

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13. LEASE ARRANGEMENTS

a. Right-of-use assets

	December 31
	2025	2024
Carrying amounts
Land	$ 1,260	$ 1,596
Buildings	28,720	50,623
Machinery	80,357	107,142
Transportation equipment	877	1,750
	$ 111,214	$ 161,111
	For the Year Ended December 31
	2025	2024
Additions to right-of-use assets	$ 303	$ 18,540
Depreciation charge for right-of-use assets
Land	$ 363	$ 358
Buildings	15,619	15,641
Transportation equipment	1,176	1,122
	$ 17,158	$ 17,121
Transfer to operating costs and inventories	$ 29,076	$ 30,583

Except for the aforementioned addition, recognized depreciation and transferred to operating costs and inventories, the Corporation did not have significant sublease or impairment of right-of-use assets during the years ended December 31, 2025 and 2024.

b. Lease liabilities

	December 31
	2025	2024
Carrying amounts
Current	$ 45,435	$ 46,985
Non-current	$ 68,080	$ 115,839

Range of discount rates for lease liabilities was as follows:

	December 31
	2025	2024
Buildings	1.21%-2.21%	1.21%-2.21%
Machinery	1.86%	1.86%
Transportation equipment	1.86%-2.23%	1.21%-2.20%

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c. Other lease information

Lease arrangements under operating leases for the leasing out of investment properties are set out in Note 14.

	For the Year Ended December 31
	2025	2024
Expenses relating to short-term leases	$ 761	$ 937
Expenses relating to low-value assets leases	$ -	$ 462
Total cash outflow for leases	$ 51,191	$ 53,963

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

1. INVESTMENT PROPERTIES

	Completed Investment Property
Cost
Balance on January 1, 2025 and December 31, 2025	$ 1,815,468
Accumulated depreciation and impairment
Balance on January 1, 2025	$ 307,496
Depreciation expense	14,725
Balance on December 31, 2025	$ 322,221
Carrying amount on December 31, 2025	$ 1,493,247
Cost
Balance on January 1, 2024 and December 31, 2024	$ 1,815,468
Accumulated depreciation and impairment
Balance on January 1, 2024	$ 292,771
Depreciation expense	14,725
Balance on December 31, 2024	$ 307,496
Carrying amount on December 31, 2024	$ 1,507,972

The abovementioned investment properties were leased out for 3 to 10 years. The lessees do not have bargain purchase options to acquire the investment properties at the expiration of the lease periods.

---

The maturity analysis of lease payments receivable under operating leases of investment properties was as follows:

	December 31
	2025	2024
Not later than 1 year	$ 69,187	$ 69,056
Later than 1 year and not later than 5 years	192,558	250,793
Later than 5 years	-	7,956
	$ 261,745	$ 327,805

Investment properties were depreciated by applying the straight-line method:

Buildings

50 years

The fair value of the Corporation's investment properties as of December 31, 2025 and 2024, were $3,589,532 thousand and $3,383,413 thousand, respectively. The fair value of the investment properties was based on the valuation carried out by independent valuers, and the input values used in the fair value measurement are classified as Level 3. The valuation was carried out based on market value.

15. INTANGIBLE ASSETS

	Industrial Technology and Know-how	Computer Software	Patent And Trademark	Total
Cost
Balance on January 1, 2025	$ 183,181	$ 249,028	$ 24,951	$ 457,160
Reclassification	-	9,879	-	9,879
Balance on December 31, 2025	$ 183,181	$ 258,907	$ 24,951	$ 467,039
Accumulated depreciation and impairment
Balance on January 1, 2025	$ 86,547	$ 227,008	$ 1,624	$ 315,179
Recognize the impairment loss	-	-	15,208	15,208
Amortization expenses	17,398	11,705	3,247	32,350
Balance on December 31, 2025	$ 103,945	$ 238,713	$ 20,079	$ 362,737
Carrying amounts on December 31, 2025	$ 79,236	$ 20,194	$ 4,872	$ 104,302 (Continued)

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	Industrial Technology and Know-how	Computer Software	Patent And Trademark	Total
Cost
Balance on January 1, 2024	$ 107,213	$ 229,189	$ -	$ 336,402
Additions	75,968	-	24,951	100,919
Reclassification	-	19,839	-	19,839
Balance on December 31, 2024	$ 183,181	$ 249,028	$ 24,951	$ 457,160
Accumulated depreciation and impairment
Balance on January 1, 2024	$ 74,575	$ 213,349	$ -	$ 287,924
Amortization expenses	11,972	13,659	1,624	27,255
Balance on December 31, 2024	$ 86,547	$ 227,008	$ 1,624	$ 315,179
Carrying amounts on December 31, 2024	$ 96,634	$ 22,020	$ 23,327	$ 141,981

The Synthetic Rubber Business Division of the Corporation experienced intensified market competition and increased production capacity within the industry, resulting in a decline in revenue and gross margin for certain synthetic rubber products and indications of impairment. The Corporation expects that the fair value of the trademark used for the production of such product was lower than its carrying amount, leading to an impairment loss. The discount rate applied in determining the fair value was 10.3%, which was estimated based on the industry's weighted average cost of capital. The projected cash flows were estimated by the consolidated company based on both internal and external historical information, as well as forecasts regarding future industry trends.

During the year ended December 31, 2025, the Corporation recognized an impairment loss of $15,208 thousand on intangible assets, including patent and trademark, which was recorded under other gains and losses. The recoverable amounts of the patent and trademark related to the impairment were determined based on their value in use.

Intangible assets are amortized on a straight-line basis over their estimated useful lives, as follows:

Industrial technology and know-how 10-20 years
Computer software 3 years
Patent 20 years
Trademark Undetermined

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An analysis of depreciation by function:

	For the Year Ended December 31
	2025	2024
Operating costs	$ 4,630	$ 7,143
Selling and marketing expenses	573	221
General and administrative expenses	23,817	16,419
Research and development expenses	3,330	3,472
	$ 32,350	$ 27,255

16. BORROWINGS

a. Short-term borrowings

	December 31
	2025	2024
Unsecured borrowings
Line of credit borrowings	$ 2,221,124	$ 1,952,683
Range of interest rates	1.85%-4.93%	1.90%-5.87%

b Short-term bills payable

	December 31
	2025	2024
Commercial paper	$ -	$ 100,000
Less: Unamortized discounts on bills payable	-	(50)
	$ -	$ 99,950
Range of interest rate	-	2.02%

c. Long-term borrowings

	December 31
	2025	2024
Unsecured borrowings
Bank loans	$ 3,590,941	$ 3,600,153
Less: Current portion	(1,000,465)	(509,212)
Long-term borrowings	$ 2,590,476	$ 3,090,941

December 31, 2025: The loan will be repayable in 2026-2029 with interest at 2.05%-2.40%.

December 31, 2024: The loan will be repayable in 2025-2029 with interest at 1.33%-2.40%.

• 29 -

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• 30 -

17. PROVISIONS

	December 31
	2025	2024
Current
Carbon fees	$ 11,360	$ -
		Carbon Fees
Balance on January 1, 2025		$ -
Recognition of provisions		11,360
Balance on December 31, 2025		$ 11,360

Starting from 2025, the Corporation recognizes a carbon fee provision in accordance with the Regulations Governing the Collection of Carbon Fees and related regulations of the ROC. On December 18, 2025, the Corporation obtained approval for the self-determined reduction plan from the competent authority. The Corporation expects to submit the implementation progress report of the self-determined reduction plan for the current year before April 30, 2026; therefore, the carbon fee provision was calculated based on the preferential rate.

18. RETIREMENT BENEFIT PLANS

a. Defined benefit plans

According to the Labor Pension Act, the Corporation's pension plan is a government-managed defined contribution plan, under which 6% of each employee's monthly salary is contributed to the individual account with the Bureau of Labor Insurance.

b. Defined benefit plans

The Corporation's pension plan under the Labor Standards Act is a government-managed defined benefit plan. Employee retirement benefits are paid based on years of service and the average salary of the six months prior to the approved retirement date. The Corporation contributes 2% of the total monthly salaries of employees to a dedicated account at Bank of Taiwan under the name of the Labor Retirement Reserve Fund Supervision Committee. Before the end of each year, if the estimated balance of the dedicated account is insufficient to pay the retirement benefits of employees expected to meet the retirement conditions in the following year, the Corporation will make a one-time appropriation of the difference before the end of March of the following year. The dedicated account is managed by the Bureau of Labor Funds, Ministry of Labor, and the Corporation has no right to influence the investment management strategy.

The amounts in the balance sheets in respect of the Corporation's defined benefit plans were as follows:

	December 31
	2025	2024
Present value of defined benefit obligation	$ 431,978	$ 463,179
Fair value of plan assets	(437,689)	(467,191)
Net defined benefit assets (included in other non-current assets)	$ (5,711)	$ (4,012)

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The changes in the net defined benefit liability (asset) are as follows:

	Present Value of the Defined Benefit Obligation	Fair Value of the Plan Assets	Net Defined Benefit Liabilities (Assets)
Balance on January 1, 2025	$ 463,179	$ (467,191)	$ (4,012)
Service cost
Current service cost and interest	1,815	-	1,815
Net interest expense (income)	7,226	(7,324)	(98)
Recognized in profit or loss	9,041	(7,324)	1,717
Remeasurement
Return on plan assets (excluding amounts included in net interest)	-	(34,470)	(34,470)
Actuarial (gain) loss
Experience adjustments	34,945	-	34,945
Recognized in other comprehensive income (loss)	34,945	(34,470)	475
Contributions from plan participants	-	(3,891)	(3,891)
Benefits paid	(75,187)	75,187	-
Balance on December 31, 2025	$ 431,978	$ (437,689)	$ (5,711)
Balance on January 1, 2024	$ 507,991	$ (478,771)	$ 29,220
Service cost
Current service cost and interest	2,399	-	2,399
Net interest expense (income)	6,740	(6,366)	374
Recognized in profit or loss	9,139	(6,366)	2,773
Remeasurement
Return on plan assets (excluding amounts included in net interest)	-	(45,033)	(45,033)
Actuarial (gain) loss
Changes in financial assumptions	(6,977)	-	(6,977)
Experience adjustments	22,179	-	22,179
Recognized in other comprehensive income (loss)	15,202	(45,033)	(29,831)
Contributions from plan participants	-	(6,174)	(6,174)
Benefits paid	(69,153)	69,153	-
Balance on December 31, 2024	$ 463,179	$ (467,191)	$ (4,012)

Through the defined benefit plans under the Labor Standards Act, the Corporation is exposed to the following risks:

1) Investment risk: The plan assets are invested in domestic and foreign equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the Bureau or under the mandated management. However, in accordance with relevant regulations, the return generated by plan assets should not be below the interest rate for a 2-year time deposit with local banks.

2) Interest risk: A decrease in the government or corporate bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the plans' debt investments.

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3) Salary risk: The present value of the defined benefit obligation is calculated by reference to the future salaries of plan participants. As such, an increase in the salaries of the plan participants will increase the present value of the defined benefit obligation.

The actuarial valuations of the present value of the defined benefit obligation were carried out by qualified actuaries. The significant assumptions used for the purposes of the actuarial valuations were as follows:

	December 31
	2025	2024
Discount rate(s)	1.625%	1.625%
Expected rate(s) of salary increase	1.500%	1.500%

If possible reasonable change in each of the significant actuarial assumptions occur and all other assumptions remain constant, the present value of the defined benefit obligation will increase (decrease) as follows:

	December 31
	2025	2024
Discount rate(s)
0.25% increase	$ (6,061)	$ (6,810)
0.25% decrease	$ 6,210	$ 6,977
Expected rate(s) of salary increase
0.25% increase	$ 5,927	$ 6,689
0.25% decrease	$ (5,833)	$ (6,569)

The sensitivity analysis presented above may not be representative of the actual change in the present value of the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

	December 31
	2025	2024
Expected contributions to the plans for the next year	$ 3,624	$ 3,990
Average duration of the defined benefit obligation	8.04 years	8.36 years

19. EQUITY

a. Share capital - ordinary shares

	December 31
	2025	2024
Shares of authorized shares (in thousands of shares)	1,200,000	1,200,000
Shares authorized, par value	$ 12,000,000	$ 12,000,000
Shares issued and fully paid (in thousands of shares)	825,710	825,710
Shares issued and fully paid	$ 8,257,099	$ 8,257,099

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b. Capital surplus

	December 31
	2025	2024
May be used to offset a deficit, distributed, as cash dividends, or transferred to share capital*
Issuance of ordinary shares	$ 849	$ 849
The difference between the consideration received or paid and the carrying amount of the subsidiaries’ net assets during actual disposal or acquisition	2,691	2,691
May only be used to offset a deficit
Overdue unclaimed dividends	54,226	53,679
	$ 57,766	$ 57,219

• Such capital surplus may be used to offset a deficit; in addition, when the Corporation has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of Corporation’s capital surplus and to once a year).

c. Retained earnings and dividend policy

In accordance with the Corporation’s articles of incorporation, when allocating the earnings for each fiscal year, the Corporation may, after offsetting losses from previous years, paying taxes and setting aside any statutory and appropriated retained earnings of 10% by ordinary resolution, allocate the remaining balance dividends, retained earnings or otherwise. The allocation shall be proposed by the board of directors for a resolution at the shareholders’ general meeting. However, dividends, employee bonuses, capital surplus, and legal reserve distributed wholly or partially in cash may be passed by the board of directors with more than two-thirds of the directors’ attendance and resolved by more than half of the directors thereafter and shall be reported during the shareholders’ general meeting. For the policies on the distribution of employees’ compensation and remuneration of directors after the amendment, refer to “employees’ compensation and remuneration of directors” in Note 21-h.

In accordance with the Corporation’s articles of incorporation, for the distribution based on the above paragraph, the cash dividend shall not be less than 20% of the total approval.

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

The allocation shall be proposed by the board of directors for a resolution at the shareholders’ general meeting. However, dividends, employee bonuses, capital surplus, and legal reserve distributed wholly or partially in cash may be passed by the board of directors with more than two-thirds of the directors’ attendance and resolved by more than half of the directors thereafter and shall be reported during the shareholders’ general meeting.

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The appropriations of earnings for 2024 and 2023 as follows:

	For the Year Ended December 31
	2024	2023
Legal reserve	$ 107,674	$ 66,670
Cash dividends	$ 520,197	$ 338,541
Cash dividends per share (NT$)	$ 0.63	$ 0.41

The aforementioned cash dividends were resolved for distribution by the board of directors on March 6, 2025 and March 7, 2024, respectively, and the remaining earnings appropriation items were resolved at the Annual General Meeting of Shareholders on June 3, 2025 and June 7, 2024, respectively.

The Corporation's board of directors held a meeting on March 7, 2024 and approved to distribute cash of $123,856 thousand (representing NT$0.15 per share) by using capital surplus. The related information can be accessed through the Market Observation Post System website.

On March 5, 2026, the Board of Directors proposed the appropriation of earnings for the year ended December 31, 2025, as follows:

	For the Year Ended December 31, 2025
Legal reserve	$ 38,643
Cash dividends	$ 222,942
Cash dividends per share (NT$)	$ 0.27

The aforementioned cash dividends have been resolved for distribution by the board of directors, and the remaining matters are subject to resolution at the Annual General Meeting of Shareholders scheduled for May 29, 2026.

d. Other equity items

1) Exchange differences on translating the financial statements of foreign operations

	For the Year Ended December 31
	2025	2024
Balance on January 1	$ 1,091,509	$ 274,823
Recognized for the year
Exchange differences on translating the financial statements of foreign operations	(371,691)	816,686
Changes in ownership interests in subsidiary	18,323	-
Balance on December 31	$ 738,141	$ 1,091,509

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2) Unrealized gain on financial assets at FVTOCI

	For the Year Ended December 31
	2025	2024
Balance on January 1	$ 1,463,463	$ 1,970,137
Recognized for the year
Unrealized gain (loss) - equity instruments	77,733	(322,809)
Cumulative unrealized loss of equity instruments transferred to retained earnings due to disposal	-	(183,865)
Balance on December 31	$ 1,541,196	$ 1,463,463

3) Loss on hedging instruments

	For the Year Ended December 31
	2025	2024
Balance on January 1	$ (38,592)	$ (42,669)
Recognized for the year
Share from associates/joint ventures accounted for using the equity method	12,589	4,077
Balance on December 31	$ (26,003)	$ (38,592)

1. REVENUE

Disaggregation of Revenue

For the year ended December 31, 2025

	Synthetic Rubber	Non-synthetic Rubber	Total
Primary geographical markets
Asia	$ 8,536,617	$ 151,418	$ 8,688,035
Americas	962,663	66	962,729
Europe	878,255	-	878,255
Others	113,745	-	113,745
	$ 10,491,280	$ 151,484	$ 10,642,764
Major product lines
Synthetic rubber/elastomers	$ 9,842,610	$ -	$ 9,842,610
Applied materials	-	150,716	150,716
Others	648,670	768	649,438
	$ 10,491,280	$ 151,484	$ 10,642,764

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For the year ended December 31, 2024

	Synthetic Rubber	Non-synthetic Rubber	Total
Primary geographical markets
Asia	$ 10,204,719	$ 223,268	$ 10,427,987
Americas	1,273,353	173	1,273,526
Europe	895,193	404	895,597
Others	86,945	-	86,945
	$ 12,460,210	$ 223,845	$ 12,684,055
Major product lines
Synthetic rubber/elastomers	$ 11,507,067	$ -	$ 11,507,067
Applied materials	-	221,388	221,388
Others	953,143	2,457	955,600
	$ 12,460,210	$ 223,845	$ 12,684,055

21. NET PROFIT

a. Other income and expenses

	For the Year Ended December 31
	2025	2024
Rental income	$ 69,811	$ 77,687
Royalty income	91,101	151,124
Net service income	9,547	5,143
Depreciation of investment properties	(14,725)	(14,725)
Net other income	11,946	17,280
	$ 167,680	$ 236,509

b. Interest income

	For the Year Ended December 31
	2025	2024
Bank deposits	$ 2,965	$ 4,035

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c. Other income

	For the Year Ended December 31
	2025	2024
Dividends	$ 87,920	$ 131,859

d. Other gains and losses

	For the Year Ended December 31
	2025	2024
(Loss) gain on disposal of financial assets and financial liabilities	$ (5,059)	$ 3,663
Net foreign exchange gain	12,305	21,092
Loss on disposal of property, plant and equipment	(2,046)	(26,913)
Impairment loss on intangible assets	(15,208)	-
Others	(262)	5,224
	$ (10,270)	$ 3,066

e. Finance costs

	For the Year Ended December 31
	2025	2024
Interest on bank loans	$ 162,884	$ 178,994
Interest on lease liabilities	2,392	3,059
	$ 165,276	$ 182,053

f. Depreciation and amortization

	For the Year Ended December 31
	2025	2024
An analysis of depreciation by function
Operating costs	$ 224,193	$ 202,154
Operating expenses	67,472	68,120
	$ 291,665	$ 270,274
An analysis of amortization by function
Operating costs	$ 4,630	$ 7,143
Operating expenses	27,720	20,112
	$ 32,350	$ 27,255

The depreciation did not include the depreciation of investment properties (included in other income and expenses), the amounts for the years ended December 31, 2025 and 2024 were both $14,725 thousand.

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g. Employee benefits expense

	For the Year Ended December 31
	2025	2024
Short-term benefits	$ 883,573	$ 887,887
Post-employment benefits
Defined contribution plans	31,589	30,213
Defined benefit plans (Note 18)	1,660	2,652
	33,249	32,865
Other employee benefits	86,246	121,585
Total employee benefits expense	$ 1,003,068	$ 1,042,337
An analysis of employee benefits expense by function
Operating costs	$ 477,651	$ 491,466
Operating expenses	525,417	550,871
	$ 1,003,068	$ 1,042,337

The defined benefit plan excludes post-employment benefits recognized in other income and expenses, which amounted to NT$57 thousand in 2025 and NT$121 thousand in 2024, respectively.

h. Employees' compensation and remuneration of directors

In accordance with the Corporation's articles of incorporation, if there is profit for the year, the Corporation should contribute more than 1% of its profit as employee remuneration and less than 1% as directors' remuneration. Pursuant to the amendments to the Securities and Exchange Act in August 2024, the Corporation's shareholders resolved at the 2025 annual general meeting to amend the Articles of Incorporation to stipulate that no less than 0.6% of the annual profit shall be reserved from the employee compensation appropriation for distribution to rank-and-file employees. The accrued employees' compensation and remuneration of directors for the years ended December 31, 2025 and 2024 were as follows:

	For the Year Ended December 31
	2025	2024
	Cash	Cash
Employees’ compensation	$ 30,160	$ 62,289
Remuneration of directors	-	-

If there is a change in the amounts after the annual financial statements were authorized for issue, the differences are recorded as a change in the accounting estimate.

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

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

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• 39 -

22. INCOME TAXES RELATING TO CONTINUING OPERATIONS

a. Income tax recognized in profit or loss

Major components of income tax expense (benefit) are as follows:

	For the Year Ended December 31
	2025	2024
Current tax
In respect of the current year	$ 25,287	$ 148,600
Income tax on unappropriated earnings	10,209	3,940
Adjustments for prior year	(53)	(17,402)
	35,443	135,138
Deferred tax
In respect of the current year	(215,378)	215,169
	$ (179,935)	$ 350,307

The reconciliation of accounting income and income tax expense (benefit) is as follows:

	For the Year Ended December 31
	2025	2024
Profit before tax from continuing operations	$ 268,520	$ 1,212,572
Income tax expense calculated at the statutory rate	$ 53,704	$ 242,515
Tax-exempt income	(12,148)	(20,318)
Adjustments for prior year	(53)	(17,402)
Reduction of investments used	(32,500)	(26,035)
Occurrence of temporary differences	(199,147)	167,607
Income tax on unappropriated earnings	10,209	3,940
	$ (179,935)	$ 350,307

b. Income tax recognized in other comprehensive income

	For the Year Ended December 31
	2025	2024
Deferred tax
In respect of the current period
Fair value changes of financial assets at FVTOCI	$ (3,040)	$ 103,625
Remeasurement of defined benefit plans	(95)	(778)
	$ (3,135)	$ 102,847

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c. Current income tax assets and liabilities

	December 31
	2025	2024
Current tax liabilities - current
Income tax payable	$ 78,537	$ 156,075
Current tax liabilities - non-current
Income tax payable	$ 37,245	$ 28,831

d. Deferred income tax assets and liabilities

The changes in deferred tax assets and liabilities are as follows:

For the year ended December 31, 2025

	Opening Balance	Recognized in Profit or Loss	Recognized in Other Comprehensive Income (Loss)	Closing Balance
Deferred tax assets
Temporary differences
Allowance for inventory write-down	$ 5,102	$ 9,050	$ -	$ 14,152
Recognized foreign investment loss in equity method	77,517	-	-	77,517
Unrealized profit on the transactions with subsidiaries	6,950	(2,369)	-	4,581
Others	5,886	3,574	-	9,460
	$ 95,455	$ 10,255	$ -	$ 105,710
Deferred tax liabilities
Temporary differences
Recognized foreign investment income in equity method	$ 1,416,102	$ (206,194)	$ -	$ 1,209,908
Permanent differences between accounting and tax for fixed assets	33,868	(2,587)	-	31,281
Land value increment tax	56,683	-	-	56,683
Financial assets measured at FVTOCI	147,434	-	(3,040)	144,394
Others	928	3,658	(95)	4,491
	$ 1,655,015	$ (205,123)	$ (3,135)	$ 1,446,757

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For the year ended December 31, 2024

	Opening Balance	Recognized in Profit or Loss	Recognized in Other Comprehensive Income (Loss)	Closing Balance
Deferred tax assets
Temporary differences
Allowance for inventory write-down	$ 8,390	$ (3,288)	$ -	$ 5,102
Recognized foreign investment loss in equity method	-	77,517	-	77,517
Unrealized profit on the transactions with subsidiaries	8,214	(1,264)	-	6,950
Others	4,999	887	-	5,886
	$ 21,603	$ 73,852	$ -	$ 95,455
Deferred tax liabilities
Temporary differences
Recognized foreign investment income in equity method	$ 1,126,623	$ 289,479	$ -	$ 1,416,102
Permanent differences between accounting and tax for fixed assets	35,159	(1,291)	-	33,868
Land value increment tax	56,683	-	-	56,683
Financial assets measured at FVTOCI	43,809	-	103,625	147,434
Others	873	883	(778)	928
	$ 1,263,147	$ 289,021	$ 102,847	$ 1,655,015

e. The aggregate amount of temporary differences associated with investments for which deferred tax liabilities have not been recognized

A portion of the investment income from subsidiaries controlled by the entity has been utilized for overseas reinvestment, and such investment income is not expected to be distributed in the foreseeable future. The amounts allocated for overseas reinvestment as of December 31, 2025 and 2024 were $10,289,348 thousand and $8,685,615 thousand each year, respectively.

f. Income tax assessments

The income tax returns of the Corporation have been assessed by the authorities for all years through 2023.

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• 42 -

23. EARNINGS PER SHARE

	For the Year Ended December 31
	2025	2024
Basic earnings per share	$ 0.54	$ 1.04
Diluted earnings per share	$ 0.54	$ 1.04

The earnings and weighted average number of ordinary shares outstanding used in the computation of earnings per share were as follows:

Net Profit for the Year

	For the Year Ended December 31
	2025	2024
Earnings used in the computation of basic and diluted earnings per share	$ 448,455	$ 862,265

Weighted Average Number of Ordinary Shares Outstanding

	(In Thousands of Shares)
	For the Year Ended December 31
	2025	2024
Weighted average number of ordinary shares outstanding in computation of basic earnings per share	825,710	825,710
Effects to potentially dilutive ordinary shares
Employees’ compensation	1,884	3,441
Weighted average number of ordinary shares outstanding in computation of diluted earnings per share	827,594	829,151

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

24. GOVERNMENT GRANTS TO SUBSIDIARIES

For details of government grants to subsidiaries, please refer to Note 25 of the Corporation’s 2025 consolidated financial statements.

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• 43 -

25. CASH FLOW INFORMATION

Changes in Liabilities Arising from Financing Activities

For the year ended December 31, 2025

	January 1, 2025	Cash Flow	Non-cash Changes		December 31, 2025
			Amortization of Commercial Paper Discount	Others
Short-term borrowings (including short-term bills payable)	$ 2,052,633	$ 168,441	$ 50	$ -	$ 2,221,124
Long-term borrowings (including current portion)	3,600,153	(9,212)	-	-	3,590,941
Lease liabilities	162,824	(48,038)	2,392	(3,663)	113,515
	$ 5,815,610	$ 111,191	$ 2,442	$ (3,663)	$ 5,925,580

For the year ended December 31, 2024

	January 1, 2024	Cash Flow	Non-cash Changes		December 31, 2024
			Amortization of Commercial Paper Discount	Others
Short-term borrowings (including short-term bills payable)	$ 1,936,291	$ 116,392	$ (50)	$ -	$ 2,052,633
Long-term borrowings (including current portion)	3,841,827	(241,674)	-	-	3,600,153
Lease liabilities	190,728	(49,505)	3,059	18,542	162,824
	$ 5,968,846	$ (174,487)	$ 3,009	$ 18,542	$ 5,815,610

26. CAPITAL MANAGEMENT

The objective of the corporation's capital management policy is to safeguard the corporation's ability to continue as a going concern, thereby providing sustained returns to shareholders and benefits to other stakeholders. To ensure these objectives are met, the corporation's management regularly reviews its capital structure. This review considers macroeconomic conditions, funding costs, and the adequacy of cash flows from operating activities. Adjustments to the capital structure are made through measures such as dividend distributions, issuance of new shares, share buybacks, adjusting debt levels (increasing or decreasing borrowings), and issuing or redeeming bonds.

27. FINANCIAL INSTRUMENTS

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

The Corporation's management believes that the carrying amounts of financial assets and liabilities are not measured at fair value approximate their fair values.

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b. Fair value of financial instruments measured at fair value on a recurring basis

1) Fair value hierarchy

December 31, 2025

	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Derivative financial assets	$ -	$ 84	$ -	$ 84
Financial assets at FVOCI
Investments in equity instruments
Listed shares (domestic)	$ 1,173,497	$ -	$ -	$ 1,173,497
Unlisted shares (domestic and overseas)	-	-	353,573	353,573
	$ 1,173,497	$ -	$ 353,573	$ 1,527,070

December 31, 2024

	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Derivative financial assets	$ -	$ 625	$ -	$ 625
Financial assets at FVOCI
Investments in equity instruments
Listed shares (domestic)	$ 1,083,601	$ -	$ -	$ 1,083,601
Unlisted shares (domestic and overseas)	-	-	360,989	360,989
	$ 1,083,601	$ -	$ 360,989	$ 1,444,590

There were no transfers between Levels 1 and 2 in the current and prior periods.

2) Reconciliation of Level 3 fair value measurements of financial instruments

For the year ended December 31, 2025

| Financial Assets | Financial Assets at FVTOCI
Equity Instruments |
| --- | --- |
| Balance on January 1, 2025 | $ 360,989 |
| Recognized in other comprehensive income (included in unrealized gain/(loss) on financial assets at FVTOCI) | (7,416) |
| Balance on December 31, 2025 | $ 353,573 |

---

For the year ended December 31, 2024

	Financial Assets at FVTOCI
Financial Assets	Equity Instruments
Balance on January 1, 2024	$ 751,844
Recognized in other comprehensive income (included in unrealized gain/(loss) on financial assets at FVTOCI)	(142,694)
Disposal	(248,161)
Balance on December 31, 2024	$ 360,989

3) Valuation techniques and inputs applied for Level 2 fair value measurement

Financial Instruments	Valuation Techniques and Inputs
Derivatives - foreign exchange forward contracts and cross-currency swap contracts	Discounted cash flow.
	Future cash flows are estimated based on observable forward exchange rates at the end of the reporting period and contract forward rates, discounted at a rate that reflects the credit risk of various counterparties.

4) Valuation techniques and inputs applied for Level 3 fair value measurement

The fair values of domestic and overseas unlisted equity investments were determined using the market approach.

The market approach refers to the comparable market transaction price and related information to estimate the fair value of the investment target.

a) Quantified information of significant unobservable input 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	Comparative listed corporation	• Multipliers of price-to-earnings ratios as of December 31, 2025 and 2024, were 9.38 and 14.29, respectively.	• The estimated fair value would have been higher if the price-to-earnings ratios had been higher
		• Market liquidity discount rate as of 20%	• The estimated fair value would have been higher if the market liquidity discount had been lower

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b) Fair value measurements in Level 3 - sensitivity analysis of reasonably possible alternative assumptions

For fair value measurements in Level 3, changing one or more of the assumptions would have the following effects on profit or loss and other comprehensive income:

	Input	Move Up or Down	Other Comprehensive Income
			Favourable	Unfavourable
December 31, 2025
Financial assets fair value through other comprehensive income
Equity investments without an active market	Liquidity discount at 20%	1%	$ 4,420	$ (4,420)
December 31, 2024
Financial assets fair value through other comprehensive income
Equity investments without an active market	Liquidity discount at 20%	1%	4,512	(4,512)

The favorable and unfavorable effects represent the changes in fair value, and the fair value is based on various unobservable inputs calculated using a valuation technique. The analysis above only reflects the effects of changes in a single input, and it does not include the interrelationships with another input.

c. Categories of financial instruments

	December 31
	2025	2024
Financial assets
FVTPL
Mandatorily classified as at FVTPL	$ 84	$ 625
Financial assets at amortized cost (1)	1,263,920	1,959,480
Financial assets at FVTOCI
Equity instruments	1,527,070	1,444,590
Financial liabilities
Financial liabilities at FVTPL
Held for trading	-	-
Financial liabilities at amortized cost (2)	7,050,520	7,484,507

1) The balances include financial assets at amortized cost, which comprise cash, trade receivables, other receivables and refundable deposits.
2) The balances include financial liabilities at amortized cost, which comprise short-term borrowings, short-term bills payable, trade payables, other payables, long-term borrowings and deposits received.

d. Financial risk management objectives and policies

The Corporation's risk management strategy for derivative financial instrument transactions is primarily focused on ensuring the corporation's stable and secure operations.

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The Corporation’s finance department is responsible for establishing and managing the risk management framework and policies, and reports on their operations to the management, audit committee, and board of directors, under their supervision.

The development of the Corporation’s risk management policy aims to identify and analyze the risks the Corporation faces, establish appropriate risk control systems and procedures, and oversee their implementation. The risk management policies and systems are regularly reviewed to reflect changes in market conditions and the Corporation’s operations. The Corporation fosters a disciplined and constructive control environment through training, management meetings, management guidelines, and operational procedures, ensuring that relevant employees understand their roles and responsibilities.

The Corporation’s audit committee oversees how the finance department monitors compliance with the Corporation’s risk management policies and procedures, and reviews the appropriateness of the Corporation’s risk management framework in addressing the risks it faces. Internal audit personnel assist the audit committee in its supervisory role. These personnel conduct regular and ad-hoc reviews of risk management controls and procedures and report the findings to the audit committee.

1) Market risk

The Corporation’s activities exposed it primarily to the financial risks of changes in foreign currency exchange rates (see (a) below), interest rates (see (b) below) and other price risk (see (c) below).

a) Foreign currency risk

The Corporation had foreign currency denominated sales, purchases and loan transactions, which exposed the Corporation to foreign currency risk. Exchange rate exposures were managed within approved policy parameters utilizing foreign exchange forward contracts and cross-currency swap contracts.

The carrying amounts of the Corporation’s foreign currency denominated monetary assets and monetary liabilities and of the derivatives exposed to foreign currency risk at the end of the reporting period are set out in Note 30.

Sensitivity analysis

The Corporation was mainly exposed to the USD, EUR, JPY and RMB.

The following table details the Corporation’s sensitivity to a 1% increase and a 1% decrease in the New Taiwan dollar against the relevant foreign currencies. The sensitivity rate of 1% is used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis included only outstanding foreign currency denominated monetary items, and their adjusted translation at the end of the reporting period for a 1% change in foreign currency rates. A positive number indicates an increase (decrease) in pre-tax profit when the New Taiwan dollar strengthened by 1% against the relevant foreign currency. Conversely, a negative number below indicates a decrease in pre-tax profit when the New Taiwan dollar weakening by 1% against the relevant foreign currency.

USD Impact
For the Year Ended December 31
	2025	2024
Profit or loss*	$ 2,473	$ 1,301

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	EUR Impact
	For the Year Ended December 31
	2025	2024
Profit or loss*	$ (28)	$ (4)
	JPY Impact
	For the Year Ended December 31
	2025	2024
Profit or loss*	$ (45)	$ 5
	RMB Impact
	For the Year Ended December 31
	2025	2024
Profit or loss*	$ (820)	$ (740)

• This was mainly attributable to the exposure on outstanding USD, EUR, JPY and RMB bank deposits, receivables, borrowings and payables which were not hedged at the end of the reporting period.

There have been no significant changes in the sensitivity analysis of the Corporation to exchange rate of USD, EUR, JPY and RMB compared to the previous period.

b) Interest rate risk

The carrying amounts of the Corporation's financial liabilities with exposure to interest rates for the years ended December 31, 2025 and 2024 were $5,812,065 thousand and $5,552,836 thousand, respectively.

Sensitivity analysis

The sensitivity analyses below were determined based on the Corporation's exposure to interest rates for non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis was prepared assuming the amount of each liability outstanding at the end of the reporting period was outstanding for the whole year. A sensitivity rate of 1% increase or decrease was used when reporting interest rate risk internally to key management personnel and represents management's assessment of the reasonably possible change in interest rates.

If interest rates had been 1% higher/lower and all other variables were held constant, the Corporation's pre-tax profit for the years ended December 31, 2025 and 2024 would have decreased/increased by $58,121 thousand and $55,528 thousand, respectively.

The Corporation's sensitivity to changes in interest rates is mainly due to borrowing at floating rates.

c) Other price risk

The Corporation was exposed to price risk through its investments in listed equity securities. The Corporation has appointed a special team to monitor the price risk and make plans to manage the price risk.

Regarding the sensitivity to changes in Level 3 fair value measurement, please refer to the Note (b) above, Fair value of financial instruments is measured at fair value on a recurring basis.

---

The Corporation’s sensitivity to equity securities investments has not changed significantly compared to the previous year.

2) Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in a financial loss to the Corporation. As at the end of the reporting period, the Corporation’s maximum exposure to credit risk which would cause a financial loss to the Corporation due to the failure of the counterparties to discharge their obligation and due to the financial guarantees provided by the Corporation, could arise from:

a) The carrying amount of the respective recognized financial assets as stated in the balance sheets; and
b) The amount of contingent liabilities in relation to financial guarantees issued by the Corporation.

The credit risk on liquid funds and derivatives was limited because the counterparties are reputable banks.

3) Liquidity risk

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

The Corporation relies on bank borrowings as a significant source of liquidity. As of December 31, 2025 and 2024, the Corporation had available unutilized short-term bank loan facilities of $7,616,894 thousand and $7,444,989 thousand, respectively.

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

The following table details the Corporation’s remaining contractual maturities for its non-derivative financial liabilities with agreed repayment periods. The tables had been drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Corporation can be required to pay. The tables included both interest and principal cash flows. Specifically, bank loans with a repayment on demand clause were included in the earliest time band regardless of the probability of the banks choosing to exercise their rights. The maturity dates for other non-derivative financial liabilities were based on the agreed repayment dates.

December 31, 2025

	On Demand or Less than 1 Year	1-2 Years	2-5 Years	5+ Years
Non-derivative financial liabilities
Short-term borrowings (including short-term bills payable)	$ 2,227,978	$ -	$ -	$ -
Accounts payable (including related parties)	685,720	-	-	-
Other payables	534,357	-	-	-
Long-term borrowings (including current portion)	1,069,277	1,096,692	1,556,570	-
Lease liabilities	47,037	40,459	28,783	-
Deposits received	-	1,116	14,142	3,120
	$ 4,564,369	$ 1,138,267	$ 1,599,495	$ 3,120

---

December 31, 2024

	On Demand or Less than 1 Year	1-2 Years	2-5 Years	5+ Years
Non-derivative financial liabilities
Short-term borrowings (including short-term bills payable)	$ 2,066,189	$ -	$ -	$ -
Accounts payable (including related parties)	1,150,553	-	-	-
Other payables	663,906	-	-	-
Long-term borrowings (including current portion)	588,706	1,058,110	2,150,128	-
Lease liabilities	49,418	48,913	69,627	93
Deposits received	-	-	14,142	3,120
	$ 4,518,772	$ 1,107,023	$ 2,233,897	$ 3,213

The amounts included above for variable interest rate instruments for non-derivative financial liabilities were subject to change if changes in variable interest rates differ from those estimates of interest rates determined at the end of the reporting period.

b) Liquidity and interest rate risk table for derivative financial liabilities

The following table details the Corporation's liquidity analysis for its derivative financial instruments. The table was based on the undiscounted gross inflows and outflows on those derivatives that require gross settlement.

December 31, 2025

	On Demand or Less than 1 Month	1-3 Months	3 Months to 1 Year	1-5 Years	5+ Years
Foreign exchange forward contracts/cross-currency swap contracts
Inflows	$ 32	$ 52	$ -	$ -	$ -

December 31, 2024

	On Demand or Less than 1 Month	1-3 Months	3 Months to 1 Year	1-5 Years	5+ Years
Foreign exchange forward contracts/cross-currency swap contracts
Inflows	$ 625	$ -	$ -	$ -	$ -

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• 51 -

28. TRANSACTIONS WITH RELATED PARTIES

a. Parent corporation and ultimate controlling party

Montrion Corporation is the ultimate controlling party of the Corporation. It indirectly controls Han-De Construction Co., Ltd. and Wei-Dar Development Co., Ltd., who held more than half of the members of the directors of the Corporation through their shares.

b. Related party name and category

The Corporation and other related parties are disclosed as follows:

Name of Related Party	Relationship with the Corporation
Trimurti Holding Corporation	The Corporation’s subsidiary
TSRC (Shanghai) Industries Ltd.	The Corporation’s subsidiary
TSRC (Lux.) Corporation S.A R.L.	The Corporation’s subsidiary
TSRC (USA) Investment Corporation	The Corporation’s subsidiary
TSRC Specialty Materials LLC	The Corporation’s subsidiary
Polybus Corporation Pte Ltd.	The Corporation’s subsidiary
Shen Hua Chemical Industries Co., Ltd.	The Corporation’s subsidiary
TSRC-UBE (Nantong) Chemical Industries Ltd.	The Corporation’s subsidiary
TSRC (Nantong) Industries Ltd.	The Corporation’s subsidiary
TSRC (Vietnam) Co., Ltd.	The Corporation’s subsidiary
Metropolis Property Management Corporation	Other related parties of the Corporation
WFV Corporation	Other related parties of the Corporation
Continental Consulting Limited Company	Other related parties of the Corporation
Evergreen Steel Corporation	Other related parties of the Corporation
Marubeni Corporation	Subsidiary’s corporate director
ARLANXEO-TSRC (Nantong) Chemical Industries Co., Ltd.	The subsidiary recognized associate under equity method
Indian Synthetic Rubber Private Limited	The subsidiary recognized joint venture under equity method

c. Operating revenue

Line Items	Related Parties Categories/Name	For the Year Ended December 31
		2025	2024
Sales	Subsidiary	$ 555,065	$ 725,703
Sales	Associate	-	6,247
		$ 555,065	$ 731,950

d. Purchases of goods

Related Parties Categories/Name	For the Year Ended December 31
	2025	2024
Subsidiary	$ 22,770	$ 32,838
Subsidiary’s corporate director	24,280	53,220
	$ 47,050	$ 86,058

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e. Receivables from related parties

Line Items	Related Parties Categories/Name	For the Year Ended December 31
		2025	2024
Trade receivables	Subsidiary
from related parties	TSRC Specialty Materials LLC	$ 43,801	$ 103,560
	TSRC (Lux.) Corporation S.A.R.L.	12,710	33,343
	Others subsidiary	9,911	18,336
		$ 66,422	$ 155,239
Other receivables	Associate	$ 16,454	$ 13,980
	Subsidiary
	TSRC (Nantong) Industries Ltd.	91,464	85,475
	Others subsidiary	6,006	8,243
		$ 113,924	$ 107,698

f. Payables to related parties

Line Items	Related Parties Categories/Name	For the Year Ended December 31
		2025	2024
Trade payables	Subsidiary	$ 7,504	$ 7,790
Other payables	Others subsidiary	$ 28,225	$ 32,417
	Associate	214	-
	Joint ventures	825	-
	Other related parties	524	435
		$ 29,788	$ 32,852

g. Acquisition of other assets

Related Party Category/Name	Line Items	Purchase Price
		For the Year Ended December 31
		2025	2024
Subsidiary	Fixed assets	$ 10,227	$ -
Subsidiary	Intangible assets	$ -	$ 100,919

h. Endorsements and guarantees

Endorsements and guarantees provided by the Corporation

	December 31
Related Party Category/Name	2025	2024
Subsidiary
TSRC (Vietnam) Co., Ltd.	$ -	$ 563,833
TSRC (USA) Investment Corporation	1,257,520	1,639,050
	$ 1,257,520	$ 2,202,883

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i. Other transactions with related parties

Line Items	Related Parties Categories/Name	For the Year Ended December 31
		2025	2024
Service income (included in other income and expenses and other non-current liabilities)	Subsidiary
	TSRC (Nantong) Industries Ltd.	$ 134,760	$ 127,181
	Shen Hua Chemical Industries Co., Ltd.	24,942	13,660
	Others subsidiary	17,651	22,638
	Associate
	ARLANXEO-TSRC (Nantong) Chemical Industries Co., Ltd.	19,412	33,414
	Joint venture	5,703	10,848
		$ 202,468	$ 207,741
Service expenses (included in other income and expenses, operating costs and operating expenses)	Subsidiary
	TSRC (Lux) Corporation S.A R.L	$ 27,517	$ 28,832
	Others subsidiary	22,587	52,445
	Joint venture	5,486	4,095
		$ 55,590	$ 85,372
Rental revenue (included in other income and expenses)	Others related parties	$ 4,633	$ 4,587
Rental expenses (included in operating expenses)	Others related parties	$ 10,703	$ 10,370

The transactions with related parties were made at prices and terms comparable to those that would be obtained in similar transactions with non-related parties.

The aforementioned rentals collected monthly were based on those prevailing in the market.

The outstanding receivables from related parties are unsecured. For the years ended December 31, 2025 and 2024, no impairment loss was recognized for receivables from related parties.

The outstanding payables to related parties are unsecured.

j Remuneration of key management personnel

Related Party Category/Name	For the Year Ended December 31
	2025	2024
Short-term employee benefits	$ 112,987	$ 111,314
Post-employment benefits	766	1,087
	$ 113,753	$ 112,401

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

k. Disposal of financial assets

Related Party Category/Name	Line Item	Number of Shares	Underlying Assets	Proceeds	Gain on Disposal (Note)
Other related party	Financial assets at fair value through other comprehensive income - non-current	5,657,000	Hsin-Yung Enterprise Corporation	$ 248,161	$ 183,865

Note: Reclassified to retained earnings.

29. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

In addition to those disclosed in other notes, significant commitments and contingencies of the Corporation as of December 31, 2025 were as follows:

a. As of December 31, 2025 and 2024, unused letters of credit for purchases of raw materials and machinery and equipment amounted to approximately $1,032,353 thousand and $1,098,871 thousand, respectively.

b. Total amounts and the cumulative payments of Corporation’s signed construction and design contracts with several vendors are as follows:

	For the Year Ended December 31
	2025	2024
Total amounts of construction in progress contracts	$ 155,608	$ 87,500
Cumulative payments	$ 43,735	$ 21,200

30. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The Corporation entities’ significant financial assets and liabilities denominated in foreign currencies aggregated by the foreign currencies other than functional currencies of the entities in the Corporation and the related exchange rates between the foreign currencies and the respective functional currencies were as follows:

December 31, 2025

	Foreign Currency	Exchange Rate	Carrying Amount
Financial assets
Monetary items
USD	$ 25,073	31.4380 (USD:NTD)	$ 788,245
EUR	551	36.8988 (EUR:NTD)	20,331
JPY	32,131	0.2008 (JPY:NTD)	6,452
RMB	18,226	4.4971 (RMB:NTD)	81,964
			(Continued)

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	Foreign Currency	Exchange Rate	Carrying Amount
Non-monetary items
Equity instruments
THB	$ 352,902	1.0019 (THB:NTD)	$ 353,573
Financial liabilities
Monetary items
USD	32,939	31.4380 (USD:NTD)	1,035,536
EUR	474	36.8988 (EUR:NTD)	17,490
JPY	9,597	0.2008 (JPY:NTD)	1,927
			(Concluded)
December 31, 2024
	Foreign Currency	Exchange Rate	Carrying Amount
Financial assets
Monetary items
USD	$ 41,049	32.7810 (USD:NTD)	$ 1,345,627
EUR	1,181	34.1316 (EUR:NTD)	40,309
JPY	26,948	0.2098 (JPY:NTD)	5,654
RMB	16,535	4.4778 (RMB:NTD)	74,040
Non-monetary items
Equity instruments
THB	375,131	0.9623 (THB:NTD)	360,989
Financial liabilities
Monetary items
USD	45,017	32.7810 (USD:NTD)	1,475,702
EUR	1,170	34.1316 (EUR:NTD)	39,934
JPY	29,314	0.2098 (JPY:NTD)	6,150

Please refer to the statements of income for the aggregate of realized and unrealized foreign currency exchange gains and losses for the years ended December 31, 2025 and 2024. Due to various kinds of foreign currency transactions, it is not possible to disclose exchange gains and losses separately for material impacts of foreign currency.

31. SEPARATELY DISCLOSED ITEMS

a. Information about significant transactions and investees:

1) Financing provided to others: Table 1.
2) Endorsements/guarantees provided: Table 2.
3) Significant marketable securities held (excluding investments in subsidiaries and associates): Table 3.

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4) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital: Table 4.

5) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: Table 5.

6) Intercompany relationships and significant intercompany transactions: Table 6.

b. Information on investees (excluding investees in mainland China): Table 7.

c. Information on investments in mainland China

1) Information on any investee corporation in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the period, repatriations of investment income, and limit on the amount of investment in the mainland China area: Table 8.

2) Any of significant transactions with investee companies in mainland China, either directly or indirectly through a corporation in third area, and their prices, payment terms, and unrealized gains or losses: Table 6.

1. OPERATING SEGMENT INFORMATION

The Corporation has provided the operating segments disclosure in the financial statements.

• 56 -

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TABLE 1

TSRC CORPORATION AND SUBSIDIARIES

FINANCING PROVIDED TO OTHERS

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

No.	Lender	Borrower	Financial Statement Account	Related Party	Highest Balance for the Period	Ending Balance	Actual Amount Borrowed	Interest Rate (%)	Nature of Financing (Note 2)	Business Transaction Amount	Reasons for Short-term Financing	Allowance for Impairment Loss	Collateral		Financing Limit for Each Borrower (Note 1)	Aggregate Financing Limit (Note 1)	Note
													Item	Value
1	TSRC (Shanghai) Industries Ltd.	TSRC (Nantong) Industries Ltd.	Entrusted loans	Yes	$ 114,258	$ 89,942	$ 44,971	2.10	2	$ -	Operational turnaround	$ -	-	$ -	$ 331,686	$ 331,686	-
2	Polybus Corporation Pte Ltd.	TSRC Specialty Materials LLC	Other receivables from related parties	Yes	331,820	314,380	-	4.68	2	-	Operational turnaround	-	-	-	5,425,190	5,425,190	-
		TSRC (Vietnam) Co., Ltd.	Other receivables from related parties	Yes	216,922	216,922	182,340	4.86-4.99	2	-	Operational turnaround	-	-	-	5,425,190	5,425,190	-
3	TSRC (Hong Kong) Ltd.	TSRC (Vietnam) Co., Ltd.	Other receivables from related parties	Yes	106,182	-	-	-	2	-	Operational turnaround	-	-	-	3,544,446	3,544,446	-
4	TSRC (USA) Investment Corporation	TSRC Specialty Materials LLC	Other receivables from related parties	Yes	1,068,892	1,068,892	842,538	5.19-5.83	2	-	Operational turnaround	-	-	-	2,242,024	2,242,024	-

Note 1: The total amount of funds lent by the Corporation and its subsidiaries shall not exceed 40% of the lending entity's net worth, and the amount extended to any individual counterparty shall not exceed 10% of the lending entity's net worth. However, in the case of overseas subsidiaries in which the Corporation directly or indirectly holds 100% of the voting shares, or where such subsidiaries provide funds to the Corporation due to operational financing needs, the foregoing limits shall not apply; provided that the amount extended to any single counterparty and the aggregate amount shall not exceed the lending entity's net worth respectively.

Note 2: Loans to other parties are numbered is as follows:

a. If its ordinary business relationship, the number is "1".
b. If it needs short-term financial funds, the number is "2".

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TABLE 2

TSRC CORPORATION AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

No.	Endorser/Guarantor	Endorsee/Guarantee		Limits on Endorsement/ Guarantee Given on Behalf of Each Party (Note 2)	Maximum Amount Endorsed/ Guaranteed During the Period	Outstanding Endorsement/ Guarantee at the End of the Period	Actual Borrowing Amount	Amount Endorsed/ Guaranteed by Collaterals	Ratio of Accumulated Endorsement/ Guarantee to Net Equity in Latest Financial Statements (%)	Aggregate Endorsement/ Guarantee Limit (Note 3)	Endorsement/ Guarantee Given by Parent on Behalf of Subsidiaries	Endorsement/ Guarantee Given by Subsidiaries on Behalf of Parent	Endorsement/ Guarantee Given on Behalf of Companies in Mainland China	Note
		Name	Relationship (Note 1)
0	TSRC Corporation	TSRC (USA) Investment Corporation	d	$ 11,973,136	$ 1,634,100	$ 1,257,520	$ 967,033	$ -	6.30	$ 29,932,839	Y	-	-
		TSRC (Vietnam) Co., Ltd.	d	11,973,136	570,731	-	-	-	-	29,932,839	Y	-	-

Note 1: Relationship between endorser/guarantor and endorsee/guarantee are categorized as follows:
a. A company that the Corporation has business relationship with.
b. The Corporation owns directly or indirectly over 50% ownership of the investee company.
c. The Company that owns directly or indirectly hold over 50% ownership of the Corporation.
d. In between companies that were held over 90% of voting shares directly or indirectly by an entity.
e. The Corporation is required to provide guarantees or endorsements for the construction project based on the construction contract.
f. Shareholder of the investee provides endorsements/guarantees to the company in proportion to their shareholding percentages.
g. According to Consumer Protection Act, companies in the same industry enter into collateral performance guarantees for pre-construction home sales agreements.

Note 2: The limit for endorsement of a single enterprise is 60% of the net value of the Corporation’s latest financial statements.

Note 3: The maximum limit is 150% of total equity of the Corporation.

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TABLE 3

TSRC CORPORATION AND SUBSIDIARIES

SIGNIFICANT MARKETABLE SECURITIES HELD (EXCLUDING INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES)

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account	December 31, 2025
				Shares	Carrying Amount	Percentage of Ownership	Fair Value
TSRC Corporation	Shares
	Evergreen Steel Corporation	-	Financial assets at FVTOCI - non-current	12,148,000	$ 1,173,497	2.91	$ 1,173,497
	Thai Synthetic Rubbers Co., Ltd.	-	Financial assets at FVTOCI - non-current	599,999	353,573	5.42	353,573
Dymas Corporation	Shares
	Thai Synthetic Rubbers Co., Ltd.	-	Financial assets at FVTOCI - non-current	837,552	493,561	7.57	493,561

• 59 -

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TABLE 4

TSRC CORPORATION AND SUBSIDIARIES

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

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Company Name	Related Party	Relationship	Transaction Details				Abnormal Transaction		Notes/Accounts Receivable (Payable)		Note
			Purchases/Sales	Amount	% to Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% to Total
TSRC (Lux.) Corporation S.A R.L.	TSRC Corporation	Parent and subsidiary	Purchases	$ 162,964	7.91	Payment in 60 days after acceptance	$ -	-	$ (12,710)	(4.20)
TSRC Corporation	TSRC (Lux.) Corporation S.A R.L.	Parent and subsidiary	Sales	(162,964)	(1.53)	Collect receivables in 60 days after confirming	-	-	12,710	1.27
TSRC Specialty Materials LLC	TSRC Corporation	Parent and subsidiary	Purchases	339,135	9.53	Payment in 60 days after acceptance	-	-	(43,801)	(10.57)
TSRC Corporation	TSRC Specialty Materials LLC	Parent and subsidiary	Sales	(339,135)	(3.19)	Collect receivables in 60 days after confirming	-	-	43,801	4.39
Shen Hua Chemical Industries Co., Ltd.	Marubeni Corporation	Director of the related parties	Purchases	117,599	1.04	Payment in 30 days after acceptance	-	-	-	-
Polybus Corporation Pte Ltd	TSRC (Nantong) Industries Ltd.	Related parties	Purchases	290,011	48.11	Payment in 60 days after acceptance	-	-	(48,882)	(49.66)
TSRC (Nantong) Industries Ltd.	Polybus Corporation Pte Ltd	Related parties	Sales	(290,011)	(5.52)	Collect receivables in 60 days after confirming	-	-	48,882	7.03
Polybus Corporation Pte Ltd	Shen Hua Chemical Industries Co., Ltd.	Related parties	Purchases	272,159	45.15	Payment in 60 days after acceptance	-	-	(44,243)	(44.95)
Shen Hua Chemical Industries Co., Ltd.	Polybus Corporation Pte Ltd	Related parties	Sales	(272,159)	(2.20)	Collect receivables in 60 days after confirming	-	-	44,243	2.64
TSRC (Lux.) Corporation S.A R.L.	TSRC Specialty Materials LLC	Related parties	Purchases	393,972	19.12	Payment in 60 days after acceptance	-	-	(45,187)	(14.94)
TSRC Specialty Materials LLC	TSRC (Lux.) Corporation S.A R.L.	Related parties	Sales	(393,972)	(8.84)	Collect receivables in 60 days after confirming	-	-	45,187	8.93
TSRC (Lux.) Corporation S.A R.L.	TSRC (Nantong) Industries Ltd.	Related parties	Purchases	1,501,690	72.89	Payment in 60 days after acceptance	-	-	(247,529)	(81.86)
TSRC (Nantong) Industries Ltd.	TSRC (Lux.) Corporation S.A R.L.	Related parties	Sales	(1,501,690)	(28.60)	Collect receivables in 60 days after confirming	-	-	247,529	35.61

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TABLE 5

TSRC CORPORATION AND SUBSIDIARIES

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

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Company Name	Related Party	Relationship	Ending Balance	Turnover Rate	Overdue		Amounts Received in Subsequent Year	Allowance for Impairment Loss	Note
					Amount	Actions Taken
TSRC (Nantong) Industries Ltd.	TSRC (Lux.) Corporation S.A R.L.	Related parties	Accounts receivable $ 247,529	7.19 times for a year	$ -	-	$ 247,529 (Note)	$ -

Note: Amounts received before March 5, 2026.

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TABLE 6

TSRC CORPORATION AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT TRANSACTIONS

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

No. (Note 1)	Investee Company	Counterparty	Relationship (Note 2)	Transactions Details			% to Total Sales or Assets
				Financial Statement Account	Amount	Payment Terms
0	TSRC	TSRC (Lux.) Corporation S.A R.L	a	Sales	$ 162,964	The transaction is not significantly different from normal transactions, and the collection terms were about two months	0.45
		Polybus Corporation Pte Ltd	a	Sales	39,938	The transaction is not significantly different from normal transactions, and the collection terms were about two months	0.11
		TSRC Specialty Materials LLC	a	Sales	339,135	The transaction is not significantly different from normal transactions, and the collection terms were about three months	0.93
		TSRC Specialty Materials LLC	a	Trade receivables from related parties	43,801	The transaction is not significantly different from normal transactions, and the collection terms were about three months	0.10
		TSRC (Nantong) Industries Ltd.	a	Other income and expenses	51,997	The transaction is not significantly different from normal transactions, and the collection terms were about six months	0.14
		TSRC (Nantong) Industries Ltd.	a	Other income and expenses	76,722	The transaction is not significantly different from normal transactions, and the collection terms were about one year	0.21
1	TSRC (Nantong) Industries Ltd.	TSRC (Shanghai) Industries Ltd.	c	Sales	62,570	The transaction is not significantly different from normal transactions, and the collection terms were about two months	0.17
		Polybus Corporation Pte Ltd	c	Sales	290,011	The transaction is not significantly different from normal transactions, and the collection terms were about two months	0.80
		Polybus Corporation Pte Ltd	c	Trade receivables from related parties	48,882	The transaction is not significantly different from normal transactions, and the collection terms were about two months	0.11
		TSRC (Lux.) Corporation S.A R.L	c	Sales	1,501,690	The transaction is not significantly different from normal transactions, and the collection terms were about two months	4.12
		TSRC (Lux.) Corporation S.A R.L	c	Trade receivables from related parties	247,529	The transaction is not significantly different from normal transactions, and the collection terms were about two months	0.57

(Continued)

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No. (Note 1)	Investee Company	Counterparty	Relationship (Note 2)	Transactions Details			% to Total Sales or Assets
				Financial Statement Account	Amount	Payment Terms
2	TSRC Specialty Materials LLC	TSRC (Lux.) Corporation S.A R.L	c	Sales	$ 393,972	The transaction is not significantly different from normal transactions, and the collection terms were about two months	1.08
		TSRC (Lux.) Corporation S.A R.L	c	Trade receivables from related parties	45,187	The transaction is not significantly different from normal transactions, and the collection terms were about two months	0.10
3	Shen Hua Chemical Industries Co., Ltd.	Polybus Corporation Pte Ltd	c	Sales	272,159	The transaction is not significantly different from normal transactions, and the collection terms were about two months	0.75
		Polybus Corporation Pte Ltd	c	Trade receivables from related parties	44,243	The transaction is not significantly different from normal transactions, and the collection terms were about two months	0.10
4	TSRC (Shanghai) Industries Ltd.	TSRC (Nantong) Industries Ltd.	c	Entrusted loan	44,971	The transaction is not significantly different from normal transactions, and the payment method is based on a one-year period starting from the date of the initial disbursement.	0.10
5	TSRC (USA) Investment Corporation	TSRC Specialty Materials LLC	c	Other receivables from related parties	842,538	The transaction is not significantly different from normal transactions, and the payment method is based on a one- to two-year period starting from the date of the initial disbursement.	1.95
6	Polybus Corporation Pte Ltd	TSRC (Vietnam) Co., Ltd.	c	Other receivables from related parties	182,340	The transaction is not significantly different from normal transactions, and the payment method is based on a one- to two-year period starting from the date of the initial disbursement.	0.42

Note 1: Business relationships between the parent and subsidiaries are numbered as follows:
a. Parent: 0.
b. Subsidiaries, sequentially numbered by Arabic numerals from 1.

Note 2: Relationships between counterparties are categorized as follows:
a. Parent to subsidiary.
b. Subsidiary to parent.
c. One subsidiary to another subsidiary.

Note 3: For balance sheet items, over 0.1% of total consolidated assets, and for profit or loss items, over 0.1% of total consolidated revenue were selected for disclosure.

(Concluded)

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TABLE 7

TSRC CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTEES (EXCLUDING INVESTMENTS IN MAINLAND CHINA)

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Investor Company	Investor Company	Location	Main Businesses and Products	Original Investment Amount	As of December 31, 2025	Net Income (Loss) of the Investor	Share of Profits (Loss)	Note
December 31, 2025	December 31, 2024	Shares	%	Carrying Amount
TSRC	Trimurti Holding Corporation	Tortola B.V.I.	Investment	$ 1,005,495	$ 1,005,495	99,520,000	100.00	$ 18,514,928
Hardison International Corporation	Tortola B.V.I.	Investment	109,442	109,442	3,896,305	100.00	465,715	(13,152)
Dymas Corporation	Tortola B.V.I.	Investment	38,376	38,376	1,161,004	19.48	109,127	20,801
TSRC (Vietnam) Co., Ltd.	Binh Duong Province, Vietnam	Production and processing of rubber color masterbatch, thermoplastic elastomer and plastic compound products	387,585	387,585	-	54.31	24,647	(49,236)
Trimurti Holding Corporation	Polybus Corporation Pte Ltd	Singapore	International commerce and investment corporation	4,514,528 (US$ 143,601)	2,691,124 (US$ 85,601)	209,853,000	100.00	13,592,877
TSRC (Hong Kong) Limited	Hong Kong	Investment	3,264,836 (US$ 103,850)	3,264,836 (US$ 103,850)	103,850,000	100.00	1,428,322	(1,062,015)
Indian Synthetic Rubber Private Limited	New Delhi, India	Production and sale of synthetic rubber products	926,572 (US$ 29,473)	926,572 (US$ 29,473)	222,861,375	50.00	2,417,558	1,089,282
TSRC (Hong Kong) Limited	TSRC (Lux.) Corporation S.A R.L.	Luxembourg	International commerce and investment	2,762,613 (EUR 74,870)	2,762,613 (EUR 74,870)	74,869,617	100.00	872,388
TSRC (Lux.) Corporation S.A R.L.	TSRC (USA) Investment Corporation	Delaware, U.S.A.	Investment	3,019,620 (US$ 96,050)	3,019,620 (US$ 96,050)	130	100.00	1,033,148
TSRC (USA) Investment Corporation	TSRC Specialty Materials LLC	Texas, U.S.A.	Production and sale of TPE	6,872,881 (US$ 218,617)	6,872,881 (US$ 218,617)	-	100.00	1,077,351
Hardison International Corporation	Triton International Holdings Corporation	Tortola B.V.I.	Investment	1,572 (US$ 50)	1,572 (US$ 50)	50,000	100.00	12,657
Dymas Corporation	Tortola B.V.I.	Investment	150,871 (US$ 4,799)	150,871 (US$ 4,799)	4,798,566	80.52	451,072	20,801
Dymas Corporation	TSRC (Vietnam) Co., Ltd.	Binh Duong Province, Vietnam	Production and processing of rubber color masterbatch, thermoplastic elastomer and plastic compound products	314,380 (US$ 10,000)	- (US$ -)	-	45.69	20,735

Note 1: Amounts in foreign currencies were translated based on the exchange rate at the reporting date (US$1 to NT$31.4380; EUR1 to NT$36.8988).
Note 2: TSRC directly owns 19.48% of Dymas's equity and indirectly owns 80.52% via Hardison International Corporation, total directly and indirectly owns of equity are 100%.
Note 3: TSRC directly owns 54.31% of TSRC (Vietnam) Co., Ltd. equity and indirectly owns 45.69% via Dymas Corporation, total directly and indirectly owns of equity are 100%.

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TABLE 8

TSRC CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTMENTS IN MAINLAND CHINA

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Investee Company in Mainland China	Main Businesses and Products	Paid-in Capital	Method of Investment (Note 1)	Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2025	Remittance of Funds		Accumulated Outward Remittance for Investment from Taiwan as of December 31, 2025	Net Income (Loss) of the Investee	% Ownership of Direct or Indirect Investment	Investment Income (Loss) (Note 3)	Carrying Amount as of December 31, 2025 (Note 3)	Accumulated Repatriation of Investment Income as of December 31, 2025	Note
					Outward	Inward
Shen Hua Chemical Industries Co., Ltd.	Production and sale of synthetic rubber products	$ 4,443,761	b. 1)	$ -	$ -	$ -	$ -	$ 653,932	90.92	$ 579,613	$ 6,567,331	$ 4,786,340	-
		(US$ 141,350)								B
TSRC (Shanghai) Industries Ltd.	Production and sale of compounding materials	172,909	b. 2)	123,237	-	-	123,237	52,013	100.00	52,013	345,433	-	-
		(US$ 5,500)		(US$ 3,920)			(US$ 3,920)			b
Nantong Qix Storage Co., Ltd.	Storehouse for chemicals	94,314	b. 3)	47,157	-	-	47,157	(59,499)	50.00	(29,749)	12,536	74,060	-
		(US$ 3,000)		(US$ 1,500)			(US$ 1,500)			b
TSRC-UBE (Nantong) Chemical Industrial Co., Ltd.	Production and sale of synthetic rubber products	1,257,520	b. 1)	31,438	-	-	31,438	191,139	55.00	105,127	1,069,698	208,813	-
		(US$ 40,000)		(US$ 1,000)			(US$ 1,000)			b
TSRC (Nantong) Industries Ltd.	Production and sale of TPE	3,304,920	b. 1)	209,000	-	-	209,000	247,238	100.00	247,238	4,323,295	440,864	-
		(US$ 105,125)		(US$ 6,648)			(US$ 6,648)			b
ARLANXEO-TSRC (Nantong) Chemical Industries Co., Ltd.	Production and sale of NBR	1,408,422	b. 1)	-	-	-	-	127,993	50.00	63,996	814,250	-	-
		(US$ 44,800)								a
Accumulated Outward Remittance for Investment in Mainland China as of December 31, 2025	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on the Amount of Investment Stipulated by Investment Commission, MOEA
---	---	---
$531,302 (US$16,900)	$9,529,549 (US$303,122) (Note 5)	No upper limit on the amount of investment (Note 4)

Note 1: The methods of making investments include the following:
a. Direct investment in mainland China.
b. Through the establishment of third-region companies, then investing in China.
1) Through the establishment of Polybus Corporation Pte Ltd, then investing in China.
2) Through the establishment of TSRC (Hong Kong) Limited, then investing in China.
3) Through the establishment of Triton International Holdings Corporation, then investing in China.
c. Other methods.

Note 2: Amounts in foreign currencies were translated based on the exchange rate at the reporting date (US$1 to NT$31.4380).

Note 3: Investment income (loss) and book value column:
a. The financial statements have been audited and certified by an international accounting firm with a partnership with Certified Public Accountant firms in the Republic of China.
b. The financial statements that have been audited by CPA of parent company.

Note 4: In accordance with the "Regulations on Permission for Investment or Technical Cooperation in Mainland China" and the "Principles for Examination of Applications for Investment or Technical Cooperation in Mainland China" amended and ratified by the Executive Yuan on August 22, 2008, the Company met the criteria for operational headquarters under the Statute for Industrial Innovation and obtained approval from the Industrial Development Bureau, Ministry of Economic Affairs, on August 6, 2024. As it has an operational headquarters status, the Company is not subject to the limitation as to the amount of investment in China during the period from July 18, 2024 to July 17, 2027.

Note 5: This amount includes capital increase out of earnings, approved by the Investment Commission, MOEA.

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STATEMENT 1

TSRC CORPORATION

STATEMENT OF CASH

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Item	Description	Amount
Cash in banks
Checking accounts and demand deposits		$ 25,212
Foreign currency deposits	Including US$1,301 thousand @31.4380, EUR102 thousand @36.8988, JPY12,094 thousand @0.2008, and RMB89 thousand @4.4971	47,480
		$ 72,692

• 66 -

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STATEMENT 2

TSRC CORPORATION

STATEMENT OF TRADE RECEIVABLES

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Client Name	Amount
Non-related party
Company A	$ 127,896
Company B	103,143
Company C	53,333
Company D	49,187
Others (Note)	598,595
	932,154
Less: Allowance for impairment loss	(167)
	$ 931,987
Related party
TSRC Specialty Materials LLC	$ 43,801
TSRC (Lux.) Corporation S.A R.L.	12,710
Polybus Corporation Pte. Ltd.	6,620
Others (Note)	3,291
	$ 66,422

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

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STATEMENT 3

TSRC CORPORATION

STATEMENT OF INVENTORY

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Item	Amount
	Cost	Net Realizable Value
Finished goods	$ 1,496,602	$ 1,527,985
Work in progress	126,696	120,469
Raw materials	417,421	414,494
Goods	6,482	6,482
	2,047,201	$ 2,069,430
Allowance inventory write-downs	(70,760)
	$ 1,976,441

• 68 -

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STATEMENT 4

TSRC CORPORATION

STATEMENT OF FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS - NON-CURRENT

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Name	Balance, January 1, 2025		Additions		Decrease		Gain (Loss) on Fair Value Change of FVTOCI	Balance, December 31, 2025		Collateral	Note
	Shares/Units	Fair Value	Shares/Units	Amount	Shares/Units	Amount		Shares/Units	Fair Value
Unlisted shares
Thai Synthetic Rubbers Co., Ltd.	599,999	$ 360,989	-	$ -	-	$ -	$(7,416)	599,999	$ 353,573	None
Listed shares
Evergreen Steel Corporation	12,148,000	1,083,601	-	-	-	-	89,896	12,148,000	1,173,497	None
		$ 1,444,590		$ -		$ -	$ 82,480		$ 1,527,070

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STATEMENT 5

TSRC CORPORATION

STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Investees	Balance, January 1, 2025		Additions in Investment		Decrease in Investment		Balance, December 31, 2025			Market Value or Net Assets Value		Collateral	Note
	Shares	Amount	Acquired Shares	Amount	Shares	Amount	Shares	Percentage of Ownership (%)		Amount	Unit Price
								%	%
Unlisted shares
Trimurti Holding Corporation	86,920,000	$ 18,775,558	12,600,000	$ -	-	$ 260,630	99,520,000	100.00	$ 18,514,928	186.38	$ 18,548,675	None	Note 1
Hardison International Corporation	3,896,305	718,726	-	-	-	253,011	3,896,305	100.00	465,715	119.53	465,715	None	Note 2
Dymas Corporation	1,161,004	163,552	-	-	-	54,425	1,161,004	19.48	109,127	94.00	109,127	None	Note 3
TSRC (Vietnam) Co., Ltd.	-	(228,756)	-	253,403	-	-	-	54.31	24,647	-	24,647	None	Note 4
		19,429,080		$ 253,403		$ 568,066	-		19,114,417		$ 19,148,164
Add: Reclassification to long-term equity investment - credit balance		228,756							-
		$ 19,657,836							$ 19,114,417

Note 1: The decrease in the amount resulted from the share of profit accounted for using the equity method of $513,554 thousand, the exchange difference on translating the financial statements of foreign entities of $(348,467) thousand, adjustment for deferred credits of $11,444 thousand, unrealized intercompany profit elimination of $11,843 thousand, changes in subsidiary ownership of $(61,646) thousand, gains of $12,589 thousand from cash flow hedges deemed effective hedging instruments, and the repatriation of earnings from subsidiaries in the amount of $(399,947) thousand.
Note 2: The decrease in the amount resulted from the share of profit accounted for using the equity method of $(13,152) thousand, the exchange difference on translating the financial statements of foreign entities of $14 thousand, unrealized gains on financial assets measured at fair value through other comprehensive income of $(6,270) thousand, and changes in subsidiary ownership of $(233,603) thousand.
Note 3: The decrease in the amount resulted from the share of profit accounted for using the equity method of $4,052 thousand, the exchange difference on translating the financial statements of foreign entities of $(445) thousand, unrealized gains on financial assets measured at fair value through other comprehensive income of $(1,517) thousand, and changes in subsidiary ownership of $(56,515) thousand.
Note 4: The increase in the amount resulted from changes in ownership percentage of $290,118 thousand, the exchange difference on translating the financial statements of foreign entities of $(4,470) thousand, and the share of loss accounted for using the equity method of $(32,245) thousand.

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STATEMENT 6

TSRC CORPORATION

STATEMENT OF CHANGES IN RIGHT-OF-USE ASSETS

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

	Land	Buildings	Transportation Equipment	Other Equipment	Total
Cost
Balance on January 1, 2025	$ 2,172	$ 80,112	$ 107,142	$ 3,369	$ 192,795
Additions	-	-	-	303	303
Disposals	-	-	-	(443)	(443)
Lease modification	27	(3,993)	-	-	(3,966)
Transfer to operating costs and inventories	-	(2,291)	(26,785)	-	(29,076)
Balance on December 31, 2025	$ 2,199	$ 73,828	$ 80,357	$ 3,229	$ 159,613
Accumulated depreciation
Balance on January 1, 2025	$ 576	$ 29,489	$ -	$ 1,619	$ 31,684
Additions	363	15,619	-	1,176	17,158
Disposals	-	-	-	(443)	(443)
Balance on December 31, 2025	$ 939	$ 45,108	$ -	$ 2,352	$ 48,399
Carrying amounts on December 31, 2025	$ 1,260	$ 28,720	$ 80,357	$ 877	$ 111,214

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STATEMENT 7

TSRC CORPORATION

STATEMENT OF SHORT-TERM BORROWING

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Type	Balance, End of Year	Contract Period	Range of Interest Rates (%)	Loan Commitments	Collateral	Note
Unsecured borrowings
Mega International Commercial Bank	$ 1,196,660	Within one year	1.85-4.80	$ 2,043,470	None
Cathay United Bank Co., Ltd.	238,457	Within one year	4.41-4.57	238,457	None
Hua Nan Commercial Bank	200,000	Within one year	1.90	1,000,000	None
Bank of China	200,000	Within one year	1.89	600,000	None
HSBC Bank (Taiwan) Limited	131,239	Within one year	1.90-4.68	943,140	None
Bank SinoPac	112,050	Within one year	2.03	600,000	None
DBS Bank	75,451	Within one year	4.72	943,140	None
Mizuho Bank, Ltd.	48,562	Within one year	4.57-4.82	471,570	None
Taishin International Bank	18,705	Within one year	4.93	500,000	None
	$ 2,221,124			$ 7,339,777

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STATEMENT 8

TSRC CORPORATION

STATEMENT OF ACCOUNTS PAYABLE

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Supplier Name	Amount
Non-related party
Company E	$ 139,560
Company F	104,271
Company G	80,846
Company H	52,029
Company I	35,264
Others (Note)	266,246
	678,216
Related party
TSRC (Nantong) Industries Ltd.	6,610
Others (Note)	894
	7,504
	$ 685,720

Note: The amount of individual supplier included in other does not exceed 5% of the account balance.

• 73 -

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STATEMENT 9

TSRC CORPORATION

STATEMENT OF LONG-TERM BORROWING

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Creditor	Contract Period	Interest Rates (%)	Balance, December 31, 2025			Collateral	Note
			Due Within One Year	Due After One Year	Total
Bank of Taiwan	Repayable at Maturity	2.17	$ 171,428	$ 1,157,143	$ 1,328,571	None
HSBC Bank (Taiwan) Limited	Repayable at Maturity	2.05-2.16	562,370	-	562,370	None
O-Bank	Repayable at Maturity	2.17	-	500,000	500,000	None
Mega International Commercial Bank	Repayable at Maturity	2.40	-	500,000	500,000	None
CTBC Bank	Repayable at Maturity	2.35	100,000	350,000	450,000	None
Chang Hwa Bank	Repayable at Maturity	2.35	166,667	83,333	250,000	None
			$ 1,000,465	$ 2,590,476	$ 3,590,941

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STATEMENT 10

TSRC CORPORATION

STATEMENT OF OPERATING REVENUE FOR THE YEAR ENDED DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Item	Quantities (In tons)	Amount
Synthetic rubber/elastomers	170,879	$ 9,842,610
Applied materials	1,738	150,716
Others		649,438
Total operating revenue		$ 10,642,764

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STATEMENT 11

TSRC CORPORATION

STATEMENT OF OPERATING COSTS

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Item	Amount
Cost of goods sold (in-house manufacturing):
Raw material
Raw materials, beginning of year	$ 678,120
Purchases in the period	7,165,265
Raw materials, end of year	(414,987)
Raw materials sold	(306,460)
Transferred to expenses and others	(23,754)
Raw materials used	7,098,184
Direct labor	241,359
Manufacturing expenses	1,837,538
Manufacturing costs	9,177,081
Work in process, beginning of year	142,265
Work in process, end of year	(126,696)
Cost of finished goods	9,192,650
Finished goods, beginning of year	1,292,242
Finished goods, end of year	(1,496,602)
Transferred to expenses and others	(2,510)
Cost of goods sold (in-house manufacturing)	8,985,780
Cost of goods sold (purchase from suppliers)
Merchandise, beginning of year	6,931
Merchandise purchased	23,871
Merchandise, end of year	(6,482)
Transferred to expenses and others	(123)
Cost of goods sold (purchase from supplier)	24,197
Total cost of goods sold	9,009,977
Decline in market value of inventory	45,252
Cost of raw material sold	306,460
Other costs	312,665
Sale of scrap	(33,074)
Operating costs	$ 9,641,280

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STATEMENT 12

TSRC CORPORATION

STATEMENT OF OPERATING EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Item	Selling Expenses	General and Administrative Expenses	Research and Development Expenses	Total
Payroll expense	$ 86,827	$ 284,827	$ 153,763	$ 525,417
Freight expense	294,284	-	-	294,284
Commission	34,330	-	-	34,330
Service expense	4,651	71,561	41	76,253
Depreciation expense	294	26,605	40,573	67,472
Computer software	48	35,799	1,072	36,919
Research expense	-	-	42,590	42,590
Others (Note)	28,879	151,577	42,203	222,659
	$ 449,313	$ 570,369	$ 280,242	1,299,924
Expected credit loss recognized on trade receivables				111
				$ 1,300,035

Note: Each remaining balance does not exceed 5% of the total balance of the account.

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STATEMENT 13

TSRC CORPORATION

STATEMENT OF EMPLOYEE BENEFITS AND DEPRECIATION

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	2025			2024
	Classified as Operating Costs	Classified as Operating Expenses	Total	Classified as Operating Costs	Classified as Operating Expenses	Total
Employee benefits
Salaries	$ 376,316	$ 431,709	$ 808,025	$ 373,799	$ 440,681	$ 814,480
Labor and health insurance	39,993	35,555	75,548	38,820	34,587	73,407
Post-employment benefits	17,677	15,572	33,249	17,193	15,672	32,865
Remuneration of directors	-	17,300	17,300	-	17,348	17,348
Others	43,665	42,581	86,246	61,654	59,931	121,585
	$ 477,651	$ 542,717	$ 1,020,368	$ 491,466	$ 568,219	$ 1,059,685
Depreciation	$ 224,193	$ 67,472	$ 291,665	$ 202,154	$ 68,120	$ 270,274
Amortization	$ 4,630	$ 27,720	$ 32,350	$ 7,143	$ 20,112	$ 27,255

Note 1: As of December 31, 2025 and 2024, the Corporation had 669 and 672 employees, respectively. Among them 6 directors did not serve concurrently as employees in 2025 and 2024, respectively.
Note 2: The average amount of employee benefits was $1,513 thousand and the prior year's average amount of employee benefit was $1,565 thousand.
Note 3: The average amount of employee salaries was $1,219 thousand and the prior year's average amount of employee salaries was $1,223 thousand. The average adjustment of employee salaries for 2025 and 2024 was (0.33%) and 3.91%, respectively.
Note 4: Remuneration of Directors: The remuneration of the Company's directors is determined in accordance with the Articles of Incorporation. Directors' compensation is decided by the Board of Directors based on their level of participation in and contribution to the Company's operations, and with reference to industry standards. Directors' remuneration is allocated at up to 1% of the Company's profit, subject to the resolution of the Board.
Note 5: The salaries of the Company's managers and employees are determined based on a competitive compensation structure, taking into account industry practices, the overall operating performance of the Company, individual performance, and contribution. The compensation principles are established accordingly and approved in accordance with the Company's internal authorization procedures.

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