Universal Cement Corporation and Subsidiaries

Consolidated Financial Statement for the Years Ended December 31, 2024 and 2023 and Independent Auditors’ Report

DECLARATION OF CONSOLIDATION OF FINANCIAL STATEMENTS OF AFFILIATES

The companies required to be included in the consolidated financial statements of affiliates in accordance with the "Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises" for the year ended December 31, 2024 are all the same as the companies required to be included in the consolidated financial statements of parent and subsidiary companies as provided in International Financial Reporting Standard 10 "Consolidated Financial Statements". Relevant information that should be disclosed in the consolidated financial statements of affiliates has all been disclosed in the consolidated financial statements of parent and subsidiary companies. Hence, we do not prepare a separate set of consolidated financial statements of affiliates.

Very truly yours,

UNIVERSAL CEMENT CORPORATION

Bo-Chih Investment Co., Ltd.

Chairman

March 10, 2025

INDEPENDENT AUDITORS' REPORT

The Board of Directors and Shareholders
Universal Cement Corporation

Opinion

We have audited the accompanying consolidated financial statements of Universal Cement Corporation and its subsidiaries (the Group), which comprise the consolidated balance sheets as of December 31, 2024 and 2023, and the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and the notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2024 and 2023, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission (FSC) of Taiwan, the Republic of China (ROC).

Basis for Opinion

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

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the year ended December 31, 2024. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

The key audit matter of the Group's consolidated financial statements for the year ended December 31, 2024 is stated as follows:

Occurrence of sales of concrete products

Refer to Note 4 (m) and Note 24. The Group mainly manufactures and sells cement, ready mixed concrete and gypsum board panels. The sales amount of some concrete customers changed greatly in 2024 or specific characteristics. Sales is the main source of the Group's revenue and has a material impact on the Group's consolidated financial statements. Consequently, occurrence of sales of concrete products is considered as a key audit matter.

Our audit procedures in respect of the above key audit matter are described as follows:

We understood the design of the Group's internal controls on accounting for sales. We tested the implementation and operating effectiveness of the internal controls.
We selected samples from the sales records, and verified that the products and quantities listed on the delivery orders and the invoices are the same and for the same customers. We noted that the delivery orders are signed by the customers.

Other Matter

We have also audited the parent company only financial statements of Universal Cement Corporation as of and for the years ended December 31, 2024 and 2023 on which we have issued an unmodified opinion.

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

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

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

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

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

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

As part of an audit in accordance with the auditing standards generally accepted in the ROC, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

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

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements for the year ended December 31, 2024 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 audit resulting in this independent auditors’ report are Chi Chen Lee and Hung Ju Liao.

Deloitte & Touche
Taipei, Taiwan

Republic of China

March 10, 2025

Notice to Readers

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

For the convenience of readers, the auditors’ report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ report and consolidated financial statements shall prevail. The English version not audited by an accountant.

Universal Cement Corporation and Subsidiaries

CONSOLIDATED BALANCE SHEETS

DECEMBER 31, 2024 AND 2023

(In Thousands of New Taiwan Dollars)

ASSETS	December 31, 2024		December 31, 2023
	Amount	%	Amount	%
CURRENT ASSETS
Cash and cash equivalents (Notes 4 and 6)	$ 1,576,599	5	$ 1,418,310	5
Financial assets at fair value through profit or loss - current (Notes 4 and 7)	9,259	-	13,972	-
Financial assets at fair value through other comprehensive income - current (Notes 4 and 8)	3,134,764	11	2,691,567	10
Financial assets at amortized cost - current (Notes 4, 9, 10 and 33)	92,367	-	127,350	-
Notes receivable (Notes 4, 11 and 24)	535,879	2	567,255	2
Net Accounts receivable (Notes 4, 11 and 24)	1,388,747	5	1,546,340	6
Net Accounts receivable from related parties (Notes 4, 11, 24 and 32)	21,591	-	58,750	-
Other receivables (Note 4)	2,037	-	589	-
Current tax assets (Note 26)	764	-	-	-
Inventories (Notes 4 and 12)	378,985	1	388,373	1
Prepayments (Note 32)	29,657	-	18,065	-
Other current assets (Notes 4, 11 and 24)	8,741	-	5,863	-
Total current assets	7,179,390	24	6,836,434	24
NON-CURRENT ASSETS
Financial assets at fair value through profit or loss - non-current (Notes 4 and 7)	40,948	-	47,558	-
Financial assets at fair value through other comprehensive income - non-current (Notes 4 and 8)	2,551,354	9	1,991,004	7
Financial assets at amortized cost - non-current (Notes 4, 9, 10 and 33)	11,512	-	16,995	-
Investments accounted for using the equity method (Notes 4 and 14)	11,407,261	38	10,804,634	39
Property, plant and equipment (Notes 4 and 15)	7,415,784	25	7,342,196	26
Right-of-use assets (Notes 4 and 16)	171,760	1	222,428	1
Investment properties (Notes 4 and 17)	798,697	3	840,717	3
Other intangible assets (Notes 4 and 18)	8,531	-	10,648	-
Deferred tax assets (Notes 4 and 26)	13,312	-	16,511	-
Prepayments for equipment	19,217	-	45,458	-
Net defined benefit assets (Notes 4 and 22)	9,740	-	14,977	-
Total non-current assets	22,448,116	76	21,353,126	76
TOTAL	$ 29,627,506	$ 100	$ 28,189,560	$ 100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term borrowings (Note 19)	$ 2,100,000	7	$ 1,700,000	6
Short-term bills payable (Note 19)	169,596	1	274,785	1
Contract liabilities - current (Notes 4 and 24)	2,267	-	2,359	-
Notes payable (Note 20)	221,258	1	218,691	1
Accounts Payable (Note 20)	612,242	2	709,034	3
Accounts Payable to related parties (Notes 20 and 32)	9,195	-	34,059	-
Other payables (Notes 21 and 32)	419,310	1	406,020	1
Current tax liabilities (Note 26)	184,723	1	157,831	1
Lease liabilities - current (Notes 4 and 16)	52,590	-	53,990	-
Long-term borrowings due within one year (Note 19)	-	-	500,000	2
Other current liabilities (Note 21)	28,009	-	22,080	-
Total current liabilities	3,799,190	13	4,078,849	15
NON-CURRENT LIABILITIES
Deferred tax liabilities (Notes 4 and 16)	1,238,574	4	1,245,107	4
Lease liabilities - non-current (Notes 4 and 16)	125,529	-	175,887	1
Guarantee deposits received	8,650	-	11,583	-
Total non-current liabilities	1,372,753	4	1,432,577	5
Total liabilities	5,171,943	17	5,511,426	20
EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY (Note 23)
Common stock	6,866,818	23	6,732,175	24
Capital surplus	122,786	-	123,719	-
Retained earnings
Legal reserve	3,130,978	11	2,920,126	10
Special reserve	3,185,793	11	3,185,793	11
Unappropriated earnings	8,042,060	27	8,099,817	29
Total retained earnings	14,358,831	49	14,205,736	50
Other equity	2,308,321	8	807,552	3
Total equity attributable to owners of the Company	23,656,756	80	21,869,182	77
NON - CONTROLLING INTERESTS	798,807	3	808,952	3
Total equity	24,455,563	83	22,678,134	80
TOTAL	$ 29,627,506	100	$ 28,189,560	100

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

Universal Cement Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

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

	2024		2023
	Amount	%	Amount	%
OPERATING REVENUE (Notes 4,24 and 32)	$ 7,953,734	100	$ 7,802,362	100
OPERATING COSTS (Notes 12, 25 and 32)	6,355,678	80	6,260,222	80
GROSS PROFIT	1,598,056	20	1,542,140	20
OPERATING EXPENSES (Notes 25 and 32)
Selling and marketing expenses	124,304	2	148,387	2
General and administrative expenses	346,649	4	354,761	5
Research and development expenses	71,824	1	72,623	1
Expected credit loss (gain)	( 2,182)	-	( 8,042)	-
Total operating expenses	540,595	7	567,729	8
PROFIT FROM OPERATIONS	1,057,461	13	974,411	12
NON-OPERATING INCOME AND EXPENSES (Notes 25 and 32)
Interest income	15,989	-	9,977	-
Other income	285,509	4	276,655	4
Other gains and losses	15,212	-	536,377	7
Interest expenses	( 42,931)	-	( 55,671)	( 1)
Share of profit or loss of associates accounted for using the equity method	475,856	6	840,843	11
Total non-operating income and expenses	749,635	10	1,608,181	21
INCOME BEFORE INCOME TAX	1,807,096	23	2,582,592	33
INCOME TAX EXPENSE (Notes 4 and 26)	276,758	4	235,340	3
NET INCOME	1,530,338	19	2,347,252	30
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit plans	-	-	( 752)	-
Unrealized gain/(loss) on investments in equity instruments at fair value through other comprehensive income	1,002,363	13	31,144	1
Share of the other comprehensive income or loss of associates accounted for using the equity method	10,032	-	3,148	-
Income tax relating to items that will not be reclassified subsequently to profit or loss	-	-	150	-
	1,012,395	13	33,690	1
Items that may be reclassified subsequently to profit or loss:
Share of the other comprehensive income or loss of associates accounted for using the equity method	505,821	6	( 210,016)	( 3)
Other comprehensive income for the year, net of income tax	1,518,216	19	( 176,326)	( 2)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR	$ 3,048,554	38	$ 2,170,926	28
NET PROFIT ATTRIBUTABLE TO:
Owners of the Company	$ 1,482,287	19	$ 2,107,758	27
Non-controlling interests	48,051	-	239,494	3
	$ 1,530,338	19	$ 2,347,252	30
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Owners of the Company	$ 3,000,298	38	$ 1,931,472	25
Non-controlling interests	48,256	-	239,454	3
	$ 3,048,554	38	$ 2,170,926	28
EARNINGS PER SHARE (Note 27)
Basic	$ 2.16		$ 3.07
Diluted	2.15		3.06

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

Universal Cement Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

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

	Equity Attributable to Owners of the Company
	Retained Earnings					Other Equity						Non-controlling Interests (Note 23)
	Capital Stock-Common Stock	Capital Surplus	Legal Reserve	Special Reserve	Unappropriated Earnings	Exchange Differences on Translating Foreign Operations	Unrealized Gain on Financial Assets at Fair Value Through Other Comprehensive Income	Remeasurement	other	Total Other Equity	Total	Total Equity
BALANCE AT JANUARY 1, 2023	$ 6,536,092	$ 123,499	$ 2,715,883	$ 3,185,793	$ 7,372,038	($ 799,476)	$ 1,711,898	$ 89,394	($ 17,217)	$ 984,599	$ 20,917,904	$ 608,574	$ 21,526,478
Appropriation of 2022 earnings (Note 23)
Legal reserve	-	-	204,243	-	( 204,243)	-	-	-	-	-	-	-	-	-	-
Cash dividends distributed by the Company - NT$ 1.5 per share	-	-	-	-	( 980,414)	-	-	-	-	-	( 980,414)	-	( 980,414)
Stock dividends distributed by the Company - NT$ 0.3 per share	196,083	-	-	-	( 196,083)	-	-	-	-	-	-	-	-	-	-
Differences between the actual equity value of subsidiaries acquired and its carrying amounts. (Note 28)		221									221	( 334)	( 113)
Disposals of investments in equity instruments at fair value through other comprehensive income	-	-	-	-	1,620	-	( 1,620)	-	-	( 1,620)	-	-	-	-	-
Changes in recognition of associates accounted for using the equity method	-	-	-	-	( 859)	-	859	-	-	859	-	-	-	-	-
Overdue dividends not collected by shareholders	-	( 1)	-	-	-	-	-	-	-	-	( 1)	-	( 1)
Net income	-	-	-	-	2,107,758	-	-	-	-	-	2,107,758	239,494	2,347,252
Other comprehensive income (loss), net of income tax	-	-	-	-	-	210,016	31,870	1,860	-	176,286	176,286	( 40)	( 176,326)
Total comprehensive income (loss) for the year ended December 31, 2023	-	-	-	-	2,107,758	-	210,016	31,870	1,860	-	176,286	1,931,472	239,494	2,170,926
Change in non-controlling interests (Note 23)												( 38,742)	( 38,742)
BALANCE AT DECEMBER 31, 2023	6,732,175	123,719	2,920,126	3,185,793	8,099,817	( 1,009,492)	1,743,007	91,254	( 17,217)	807,552	21,869,182	808,952	22,678,134
Appropriation of 2023 earnings (Note 23)
Legal reserve	-	-	210,852	-	( 210,852)	-	-	-	-	-	-	-	-	-	-
Cash dividends distributed by the Company - NT$ 1.8 per share	-	-	-	-	( 1,211,791)	-	-	-	-	-	( 1,211,791)	-	( 1,211,791)
Stock dividends distributed by the Company - NT$ 0.2 per share	134,643	-	-	-	( 134,643)	-	-	-	-	-	-	-	-	-	-
Differences between the actual equity value of subsidiaries acquired and its carrying amounts. (Note 28)	-	( 926)									( 926)	( 6,344)	( 7,270)
Disposals of investments in equity instruments at fair value through other comprehensive income	-	-	-	-	17,242	-	( 17,242)	-	-	( 17,242)	-	-	-	-	-
Changes in recognition of associates accounted for using the equity method	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Overdue dividends not collected by shareholders	-	( 7)	-	-	-	-	-	-	-	-	( 7)	-	( 7)
Net income for the year ended December 31, 2024	-	-	-	-	1,482,287	-	-	-	-	-	1,482,287	48,051	1,530,338
Other comprehensive income, net of income tax	-	-	-	-	-	505,821	1,001,677	10,513	-	1,518,011	1,518,011	205	1,518,216
Total comprehensive income (loss) for the year ended December 31, 2024	-	-	-	-	1,482,287	505,821	1,001,677	10,513	-	1,518,011	3,000,298	48,256	3,048,554
Change in non-controlling interests (Note 23)												( 52,057)	( 52,057)
BALANCE AT DECEMBER 31, 2024	$ 6,866,018	$ 123,786	$ 3,130,978	$ 3,185,793	$ 8,042,060	($ 503,871)	$ 2,737,443	$ 103,767	($ 17,217)	$ 5,308,321	$ 23,656,750	$ 790,807	$ 24,455,563

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

Universal Cement Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

(In Thousands of New Taiwan Dollars)

	2024	2023
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax	$ 1,807,096	$ 2,582,592
Adjustments for:
Depreciation expenses	216,703	181,754
Amortization expenses	3,866	4,145
Expected credit gain recognized	( 2,182)	( 8,042)
Net gain on fair value changes of financial assets at fair value through profit or loss	( 2,702)	( 42,755)
Interest expenses	42,931	55,671
Interest income	( 15,989)	( 9,977)
Dividend income	( 226,710)	( 231,873)
Share of profit of associates accounted for using the equity method	( 475,856)	( 840,843)
Net gain on disposal of property, plant and equipment	( 9,948)	( 612,623)
Impairment losses on assets	-	116,111
Liquidation Benefit	-	( 465)
Changes in operating assets and liabilities
Notes receivable	31,376	( 30,191)
Accounts receivable (Including related parties)	196,769	( 152,009)
Other receivables	1,667	( 11,672)
Inventories	9,388	5,610
Prepayments	( 11,592)	5,893
Other current assets	( 2,713)	6,934
Contract liabilities	( 92)	275
Notes payable	2,567	29,946
Accounts payable (Including related parties)	( 121,656)	38,843
Other payables	22,110	34,996
Other current liabilities	5,929	( 890)
Net defined benefit plan	5,237	160
Cash generated from operations	1,476,199	1,121,590
Interest received	12,874	9,974
Dividends received	674,617	679,780
Income tax paid	( 253,964)	( 262,443)
Net cash generated from operating activities	1,909,726	1,548,901

(Continued)

Universal Cement Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

(In Thousands of New Taiwan Dollars)

	2024	2023
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions of financial assets at fair value through other comprehensive income	($ 53,689)	($ 2,260)
Proceeds from the liquidation of financial assets at fair value through other comprehensive income	-	2,125
Proceeds from the capital reduction of financial assets at fair value through other comprehensive income	22,000	23,311
Increase in financial assets at amortized cost	( 35,445)	( 37,129)
Decrease in financial assets at amortized cost	75,911	11,435
Proceeds from sale of financial assets at fair value through profit or loss	13,867	106,369
Proceeds from the capital reduction of financial assets at fair value through profit or loss	158	-
Acquisitions of investments accounted for using the equity method	( 28,320)	-
Payments for property, plant and equipment	( 179,647)	( 195,570)
Proceeds from disposal of property, plant and equipment	11,640	1,117,389
Payments for intangible assets	( 1,749)	( 2,801)
Net cash generated from /(used in) investing activities	( 175,274)	1,022,869
CASH FLOWS FROM FINANCING ACTIVITIES
Increase (Decrease) in short-term loans	400,000	( 590,000)
Decrease in short-term bills payable	( 105,000)	( 725,000)
Increase in long-term loans	-	500,000
Repayment of long-term loans	( 500,000)	-
Proceeds from guarantee deposits received	40	2,699
Refund of guarantee deposits received	( 2,973)	( 795)
Repayment of the principal portion of lease liabilities	( 54,254)	( 51,612)
Cash dividends paid	( 1,211,791)	( 980,414)
Acquisitions of non-controlling interests	( 7,270)	( 113)
Interest Paid	( 42,858)	( 53,947)
Change in non-controlling interests	( 52,057)	( 38,742)
Net cash used in financing activities	( 1,576,163)	( 1,937,924)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	158,289	633,846
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR	1,418,310	784,464
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	$ 1,576,599	$ 1,418,310

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

(Concluded)

Universal Cement Corporation and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

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

1. GENERAL INFORMATION

Universal Cement Corporation (the Company) was incorporated in the Republic of China (ROC) in March 1960. The Company mainly manufactures and sells cement, ready mixed concrete and gypsum board panels.

The Company’s shares have been listed on the Taiwan Stock Exchange (TWSE) since February 1971.

The consolidated financial statements are presented in the Company’s functional currency, New Taiwan dollar.

2. APPROVAL OF FINANCIAL STATEMENTS

The accompanying consolidated financial statements were approved by the Company’s board of directors on March 10, 2025.

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

a. The initial application of the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), Interpretations of IFRS (IFRIC), and Interpretations of IAS (SIC) (collectively, the “IFRSs”) endorsed and issued into effect by the Financial Supervisory Commission (FSC).

The initial application of the amendments to the IFRSs endorsed and issued into effect by the FSC did not have any material impact on the Group’s accounting policies.

b. The IFRS Accounting Standards endorsed by the FSC for application starting from 2025

New, Amended and Revised Standards and Interpretations	Effective Date Announced by IASB (Note 1)
Amendments to IAS 21 “Lack of Exchangeability”	January 1, 2025 (Note 1)
Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” - the amendments to the application guidance of classification of financial assets	January 1, 2026 (Note 2)

Note 1: An entity shall apply those amendments for annual reporting periods beginning on or after January 1, 2025. Upon initial application of the amendments to IAS 21, the Group shall not restate the comparative information and shall recognize any effect of initially applying the amendments as an adjustment to the opening balance of retained earnings or, if applicable, to the cumulative amount of translation differences in equity as well as affected assets or liabilities.

Note 2: An entity shall apply those amendments for annual reporting periods beginning on or after January 1, 2026. It is permitted to apply these amendments for an earlier period beginning on

11 -

January 1, 2025. An entity shall apply the amendments retrospectively but is not required to restate prior periods. The effect of initially applying the amendments shall be recognized as an adjustment to the opening balance at the date of initial application. An entity may restate prior periods if, and only if, it is possible to do so without the use of hindsight.

As of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the possible impact that the application of other standards and interpretations will have on the Group's financial position and financial performance and will disclose the relevant impact when the assessment is completed.

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)
Annual Improvements to IFRS Accounting Standards - Volume 11	January 1, 2026
Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” - the amendments to the application guidance of derecognition of financial liabilities	January 1, 2026
Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”	January 1, 2026
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 17 “Insurance Contracts”	January 1, 2023
Amendments to IFRS 17	January 1, 2023
Amendments to IFRS 17 “Initial Application of IFRS 17 and IFRS 9 - Comparative Information”	January 1, 2023
IFRS 18 “Presentation and Disclosure in Financial Statements”	January 1, 2027
IFRS 19 “Subsidiaries without Public Accountability: Disclosures”	January 1, 2027

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

IFRS 18 "Presentation and Disclosure in Financial Statements"

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

Items of income and expenses included in the statement of profit or loss shall be classified into the operating, investing, financing, income taxes and discontinued operations categories.

The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing and income taxes and profit or loss.

Provides guidance to enhance the requirements of aggregation and disaggregation: The Group shall identify the assets, liabilities, equity, income, expenses and cash flows that arise from individual transactions or other events and shall classify and aggregate them into groups based on shared characteristics, so as to result in the presentation in the primary financial statements of line items that have at least one similar characteristic. The Group shall disaggregate items with dissimilar characteristics in the primary financial statements and in the notes. The Group labels items as "other" only if it cannot find a more informative label.

Disclosures on Management-defined Performance Measures (MPMs): When in public communications outside financial statements and communicating to users of financial statements management's view of an aspect of the financial performance of the Group as a whole, the Group shall disclose related information about its MPMs in a single note to the

financial statements, including the description of such measures, calculations, reconciliations to the subtotal or total specified by IFRS Accounting Standards and the income tax and non-controlling interests effects of related reconciliation items.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Statement of compliance

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

b. Basis of preparation

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

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, which 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 the assets or liabilities, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
3) Level 3 inputs are unobservable inputs for the assets or liabilities.

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; and
3) Liabilities for which the Group does not have an unconditional right to defer settlement for at least 12 months after the reporting period.

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

d. Basis of consolidation

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

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

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

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

Changes in the Group's ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the Group's interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to the owners of the Company.

See Note 13 and table 5 for detailed information on subsidiaries (including percentages of ownership and main business).

e. Foreign currencies

In preparing the financial statements of each individual group entity, transactions in currencies other than the entity's functional currency (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.

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

Non-monetary items that are measured at historical cost in a foreign currency are not retranslated.

For the purpose of presenting consolidated financial statements, the functional currencies of the Group entities (including subsidiaries in other countries that use currencies which are different from the currency of the Company) are translated into the presentation currency, the New Taiwan dollars 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 (attributed to the owners of the Company and non-controlling interests as appropriate).

f. Inventories

Inventories consist of raw materials and supplies, merchandise, finished goods and work-in-process. Inventories are stated at the lower of cost or net realizable value. Inventory write-downs are made by

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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.

g. Investment in associates

An associate is an entity over which the Group has significant influence and that is neither a subsidiary nor an interest in a joint venture.

The Group uses the equity method to account for its investments in associates.

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

Any excess of the cost of acquisition over the Group's share of the net fair value of the identifiable assets and liabilities of an associate at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment and is not amortized. Any excess of the Group's share of the net fair value of the identifiable assets and liabilities over the cost of acquisition, after reassessment, is recognized immediately in profit or loss.

When the Group subscribes for additional new shares of the associate at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment differs from the amount of the Group's proportionate interest in the associate. The Group records such a difference as an adjustment to investments with the corresponding amount charged or credited to capital surplus – changes in capital surplus from investments in associates accounted for using the equity method. If the Group's ownership interest is reduced due to the additional subscription of the new shares of associate, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate is reclassified to profit or loss on the same basis as would be required had the investee directly disposed of the related assets or liabilities. When the adjustment should be debited to capital surplus, but the capital surplus recognized from investments accounted for using the equity method is insufficient, the shortage is debited to retained earnings.

When the Group's share of losses of an associate equals or exceeds its interest in that associate (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 Group's net investment in the associate), the Group discontinues recognizing its share of further losses. Additional losses and liabilities are recognized only to the extent that the Group has incurred legal obligations, or constructive obligations, or made payments on behalf of that associate.

The entire carrying amount of the investment is tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized is not allocated to any asset that forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

The Group discontinues the use of the equity method from the date on which its investment ceases to be an associate. Any retained investment is measured at fair value at that date and the fair value is regarded as its fair value on initial recognition as a financial asset. The difference between the previous carrying amount of the associate attributable to the retained interest and its fair value is included in the determination of the gain or loss on disposal of the associate. The Group accounts for all amounts previously recognized in other comprehensive income in relation to that associate on the same basis as would be required had that associate directly disposed of the related assets or liabilities.

When a Group entity transacts with its associate, profits and losses resulting from the transactions with the associate are recognized in the Group's consolidated financial statements only to the extent that interests in the associate are not related to the Group.

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h. Property, plant and equipment

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

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

Depreciation on 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 method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

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

i. 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.

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. Depreciation is recognized using the straight-line method.

For a transfer of classification from property, plant and equipment to investment properties, the deemed cost of the property for subsequent accounting is its carrying amount at the end of owner-occupation.

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.

j. Intangible assets

Intangible assets with finite useful lives that are acquired separately 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 life, residual value, and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

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

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

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

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

When an impairment loss is subsequently reversed, the carrying amount of the corresponding asset 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.

1. Financial instruments

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

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) 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 fair value through profit or loss are recognized immediately in profit or loss.

1) Financial assets

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

a) Measurement category

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

i. Financial assets at FVTPL

Financial assets are classified as at FVTPL when such a financial asset is mandatorily classified or designated as at FVTPL. Financial assets mandatorily classified as at FVTPL include investments in equity instruments which are not designated as at FVTOCI and debt instruments that do not meet the amortized cost criteria or the FVTOCI criteria.

Financial assets at FVTPL are subsequently measured at fair value, with dividends or interest and any remeasurement gains or losses on such financial assets are recognized in other gains or losses. Fair value is determined in the manner described in Note 31.

ii. Financial assets at amortized cost

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

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

Subsequent to initial recognition, financial assets at amortized cost, including cash and cash

17 -

equivalents, notes receivable, accounts receivable (Including related parties), other receivables and financial assets at amortized cost, are measured at amortized cost, which equals the gross carrying amount determined using the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

Interest income is calculated by applying the effective interest rate to the gross carrying amount of such a financial asset, except for:

i) Purchased or originated credit-impaired financial assets, for which interest income is calculated by applying the credit-adjusted effective interest rate to the amortized cost of such financial assets; and
ii) Financial assets that are not credit-impaired on purchase or origination but have subsequently become credit-impaired, for which interest income is calculated by applying the effective interest rate to the amortized cost of such financial assets in subsequent reporting periods.

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

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

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

iii. Investments in equity instruments at FVTOCI

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

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

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

b) Impairment of financial assets and contract assets

The Group recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including accounts receivable), as well as contract assets.

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

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

For internal credit risk management purposes, the Group determines that the following situations indicate that a financial asset is in default (without taking into account any collateral held by the Group):

i. Internal or external information shows that the debtor is unlikely to pay its creditors.

ii. When a financial asset is more than 365 days past due unless the Group has reasonable and corroborative information to support a more lagged default criterion.

The impairment loss of all financial assets is recognized in profit or loss by a reduction in their carrying amounts through a loss allowance account.

c) Derecognition of financial assets

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

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

2) Equity instruments

Equity instruments issued by a Group entity are classified as equity in accordance with the substance of the contractual arrangements and the definitions of an equity instrument.

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

The repurchase of the Company's own equity instruments is recognized in and deducted directly from equity. No gain or loss is recognized in profit or loss on the purchase, sale, issuance or cancellation of the Company's own equity instruments.

3) Financial liabilities

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a) Subsequent measurement

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

b) Derecognition of financial liabilities

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

m. Revenue recognition

The Group identifies contracts with customers, allocates the transaction price to the performance obligations and recognizes revenue when performance obligations are satisfied.

Revenue from the sale of goods

Revenue from the sale of goods comes from sales of cement, ready mixed concrete and gypsum board panels. Sales of cement, ready mixed concrete and gypsum board panels are recognized as revenue when the goods are shipped because it is the time when the customer has full discretion over the manner of distribution, has the primary responsibility for sales to future customers and bears the risks of obsolescence. Accounts receivable and contract assets are recognized concurrently. Certain payments, which are retained by the customer as specified in the contract, are intended to ensure that the Group adequately completes all of its contractual obligations. Such retention receivables are recognized as contract assets until the Group satisfies its performance obligations. When the customer initially purchases cement, the transaction price received is recognized as a contract liability until the goods have been delivered to the customer.

n. Leases

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

1) The Group as lessor

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

Lease payments (less any lease incentives payable) from operating leases are recognized as income on a straight-line basis over the terms of the relevant leases.

When a lease includes both land and building elements, the Group assesses the classification of each element separately as a finance or an operating lease based on the assessment as to whether substantially all the risks and rewards incidental to ownership of each element have been transferred to the lessee. The lease payments are allocated between the land and the building elements in proportion to the relative fair values of the leasehold interests in the land element and building element of the lease at the inception of a contract. If the allocation of the lease payments can be made reliably, each element is accounted for separately in accordance with its lease classification. When the lease payments cannot be allocated reliably between the land and building elements, the entire lease is generally classified as a finance lease unless it is clear that both elements are operating leases; in which case, the entire lease is classified as an operating lease.

2) The Group as lessee

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

Right-of-use assets are initially measured at cost, which comprises the initial measurement of lease

20 -

liabilities. Right-of-use assets are subsequently measured at cost less accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are presented on a separate line in the consolidated balance sheets.

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

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

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

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 service 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 costs (including current service cost, as well as gains and losses on settlements) and net interest on the net defined benefit liability (asset) are recognized as employee benefits expense in the period they occur. Remeasurement, comprising actuarial gains and losses and the return on plan assets (excluding interest), is recognized in other comprehensive income in the period in which they occur. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.

Net defined benefit liability (asset) represents the actual deficit (surplus) in the Group’s defined benefit plan. Any surplus resulting from this calculation is limited to the present value of any refunds from the plans or reductions in future contributions to the plans.

p. Taxation

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

1) Current tax

The Group determines its current income (loss) according to the regulations established by the jurisdictions of the tax return to calculate its income tax payable (recoverable).

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

Adjustments of prior years’ tax liabilities are added to or deducted from the current years’ tax

21 -

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.

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

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

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset 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 Group 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 tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity respectively.

CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Group's accounting policies, management is required to make judgments, estimates and assumptions 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.

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

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6. CASH AND CASH EQUIVALENTS

	December 31
	2024	2023
Cash on hand and petty cash	$ 428	$ 461
Checking accounts and demand deposits	710,656	313,886
Cash equivalent (investments with original maturities less than 3 months)
Time deposits (a)	386,400	49,400
Bonds with repurchase agreements (b)	479,115	1,054,563
	$ 1,576,599	$ 1,418,310

The ranges of interest rates of time deposits and bonds with repurchase agreements at the end of the reporting period were as follows:

	December 31
	2024	2023
a. Time deposits	1.23%–1.46%	1.1%–1.16%
b. Bonds with repurchase agreements	1.43%–1.46%	1.2%–1.23%

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

	December 31
	2024	2023
Financial assets - current
Financial assets mandatorily classified as at FVTPL
Non-derivative financial assets
Listed shares	$ 8,887	$ 13,578
Mutual funds	372	394
	$ 9,259	$ 13,972
Financial assets - non-current
Financial assets mandatorily classified as at FVTPL
Non-derivative financial assets
Limited Partnership	$ 40,948	$ 47,558

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

	December 31
	2024	2023
Investments in equity instruments at FVTOCI - Current
Domestic investments
Listed shares	$ 3,134,764	$ 2,691,567
Investments in equity instruments at FVTOCI - Non-current
Domestic investments
Listed private equity	$ 1,001,880	$ 591,800
Unlisted shares	1,549,474	1,399,204
	$ 2,551,354	$ 1,991,004

The Group invests in the aforementioned common stocks for strategic purposes. The Group believes that including the short-term fair value fluctuations of these investments in profit and loss is inconsistent with the aforementioned long-term investment plan. Therefore, they have chosen to designate these investments as FVTOCI.

Chinese Products Promotion Center completed its liquidation in August 2023 and returned a share capital of NT$2,125 thousand. Relevant other interests – unrealized gains on financial assets at fair value through other comprehensive income of NT$1,620 thousand are transferred to retained earnings.

The Group has had a significant influence on Bao Horng Cement Corp. since November 2024 (refer to Note14). This is due to the removal of FVTOCI, with the related other equity—unrealized gains on FVTOCI amounting to NT$17,242 thousand being transferred to retained earnings.

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9. FINANCIAL ASSETS AT AMORTIZED COST

	December 31
	2024	2023
Current
Time deposits with original maturity more than 3 months (a)	$ 92,300	$ 127,283
Pledged time deposits (a)	67	67
	$ 92,367	$ 127,350
Non-current
Pledged time deposits (a)	$ 8,010	$ 8,010
Refundable deposits	3,502	8,985
	$ 11,512	$ 16,995

a. The ranges of interest rates of time deposits and pledged time deposits with original maturities of more than 3 months at the end of the reporting period were as follows:

	December 31
	2024	2023
Time deposits and pledged time deposits	1.375%–1.70%	1.25%–5.47%

The information on pledged time deposits is set out in Note 33.

b. Refer to Note 10 for information relating to the credit risk management and impairment of investments in financial assets at amortized cost.

10. CREDIT RISK MANAGEMENT FOR INVESTMENTS IN DEBT INSTRUMENTS

Investments in debt instruments were classified as financial assets at amortized cost.

	December 31
	2024	2023
Gross carrying amounts
Financial assets at amortized cost - current	$ 92,367	$ 127,350
Financial assets at amortized cost - non-current	11,512	16,995
	$ 103,879	$ 144,345

The Group invests only in debt instruments that have low credit risk for the purpose of impairment assessment. In measuring 12-month expected credit losses or lifetime expected credit losses for debt instrument investments, the Group considers the historical default rates, the current financial condition of debtors, and the future prospects of the industries. Due to the low credit risk of debtors and sufficient ability to settle contractual cash flows, as of December 31, 2024 and 2023, no expected credit losses have been recognized in financial assets measured at amortized cost.

11. NOTES RECEIVABLE AND ACCOUNTS RECEIVABLE (INCLUDING RELATED PARTIES)

	December 31
	2024	2023
Notes receivable
At amortized cost
Notes receivable - operating	$ 535,879	$ 566,922
Notes receivable - non-operating	-	333
	$ 535,879	$ 567,255
Accounts receivable (Including related parties)
At amortized cost	$ 1,417,945	$ 1,614,768
Less: Allowance for impairment loss	7,607	9,678
	$ 1,410,338	$ 1,605,090

a. Notes receivable

The Group analyzed notes receivable based on their past due status and determined that none were overdue. As a result, no expected credit loss was recognized for notes receivable as of December 31, 2024, and 2023.

b. Accounts receivable (Including related parties)

The average collection period for receivables due to sales was between 30 to 90 days. No interest was charged on accounts receivable. In order to minimize credit risk, the management of the Group has delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In addition, the Group reviews the recoverable amount of each individual trade debt at the end of the reporting period to ensure that adequate allowance is made for possible irrecoverable amounts. In this regard, the management believes the Group's credit risk was significantly reduced.

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

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

The following table details the loss allowance of accounts receivables based on the Group's provision matrix.

December 31, 2024

	Less than 30 Days	31-60 Days	61-90 Days	91-120 Days	121-150 Days	151-365 Days	Over 365 Days	Total
Expected credit loss rate	0.12%–0.81%	0.34%–0.93%	0.79%–1.34%	2.31%–2.70%	6.47%–10.93%	24.51%–38.57%	100%
Gross carrying amount	$ 958,857	$ 292,351	$ 107,672	$ 48,653	$ 5,607	$ 4,315	$ 490	$ 1,417,945
Loss allowance (Lifetime ECL)	( 1,767)	( 1,436)	( 1,097)	( 1,184)	( 503)	( 1,130)	( 490)	( 7,607)
Amortized cost	$ 957,090	$ 290,915	$ 106,575	$ 47,469	$ 5,104	$ 3,185	$ -	$ 1,410,338
December 31, 2023	Less than 30 Days	31-60 Days	61-90 Days	91-120 Days	121-150 Days	151-365 Days	Over 365 Days	Total
Expected credit loss rate	0.13%–0.82%	0.37%–0.94%	0.88%–1.35%	2.31%–2.96%	6.35%–13.41%	23.78%–54.09%	0%
Gross carrying amount	$ 1,010,499	$ 370,838	$ 131,779	$ 67,430	$ 27,765	$ 2,691	$ 3,766	$ 1,614,768
Loss allowance (Lifetime ECL)	( 1,210)	( 2,537)	( 1,640)	( 2,115)	( 2,013)	( 163)	-	( 9,678)
Amortized cost	$ 1,009,289	$ 368,301	$ 130,139	$ 65,315	$ 25,752	$ 2,528	$ 3,766	$ 1,605,090

The Group has received accounts receivable of over 366 days in January 2024 and did not recognize the loss allowance of accounts receivable.

The movements of the loss allowance of contract asset (included in other current assets) and accounts receivable (including related parties) were as follows:

For the year of 2024

	Contract Asset	Accounts Receivable (Including related parties)	Total
Balance at January 1	$ 370	$ 9,678	$ 10,048
Less: Allowance (reversal) for the year	( 165)	( 2,017)	( 2,182)
Less: Written off for the year	-	( 54)	( 54)
Balance at December 31	$ 205	$ 7,607	$ 7,812

For the year of 2023

	Contract Asset	Accounts Receivable (Including related parties)	Total
Balance at January 1	$ 1,549	$ 19,237	$ 20,786
Less: Allowance (reversal) for the year	( 1,179)	( 6,863)	( 8,042)
Less: Written off for the year	-	( 2,696)	( 2,696)
Balance at December 31	$ 370	$ 9,678	$ 10,048

12. INVENTORIES

	December 31
	2024	2023
Merchandise	$ 24,918	$ 33,165
Finished goods	92,614	125,498
Work in progress	27,974	9,990
Raw materials and supplies	233,479	219,720
	$ 378,985	$ 388,373

The cost of inventories recognized as cost of goods sold

For the Years Ended December 31
	2024	2023
The cost of inventories recognized as cost of goods sold	$ 6,355,678	$ 6,260,222

13. SUBSIDIARIES

Subsidiaries included in the consolidated financial statements were as follows:

Investor	Investor	Nature of Activities	Proportion of Ownership		Remark
			December 31	2024
The Company	Chiayi Ready-mixed Concrete Industry Co., Ltd.	Manufacturing and marketing of ready-mixed concrete	86.63	86.63	b
"	Huan-Chung International Co., Ltd.	Import, export, and sale of cement, cement material, fuel, and production	69.99	69.99
"	Kaohsiung Pier Transportation Co., Ltd.	Trucking operation	100	100
"	UCC Investment Co., Ltd.	Investment activities	100	100
"	Universal Ready-mixed Concrete Industry Co., Ltd.	Manufacturing and marketing of ready-mixed concrete and gravel	58.18	58.18
"	Unco Inc.	Marketing of electronic products	100	100	c
"	Li-Yong Development Co., Ltd.	Investment activities, trading for real estate and leasing business	100	100
"	Tainan Ready-mixed Concrete Industry Co., Ltd.	Additional processing and marketing of ready-mixed concrete and cement	67.45	67.45
UCC Investment Co., Ltd.	Universal Ready-mixed Concrete Industry Co., Ltd.	Manufacturing and marketing of ready-mixed concrete and gravel	1.97	0.87	a
"	Chiayi Ready-mixed Concrete Industry Co., Ltd.	Manufacturing and marketing of ready-mixed concrete	0.01	0.01	b
"	Huan-Chung International Co., Ltd.	Import, export, and sale of cement, cement material, fuel, and production	0.01	0.01
"	Tainan Ready-mixed Concrete Industry Co., Ltd.	Additional processing and marketing of ready-mixed concrete and cement	0.33	0.33	a

a. The Company acquired 145 thousand shares held by the non-controlling interest of Universal Ready-mixed Concrete Industry Co., Ltd. in July 2024, resulting in an increase in the shareholding ratio.
b. The Company conduct a cash capital increase of $50,000 thousand decided at the shareholders' meeting in October 2024, our company increased its capital by $43,315 thousand, resulting in an increase in shareholding ratio, and the registration has been completed.
c. The Company conduct a cash capital increase of $50,000 thousand decided at the board meeting in November 2024, our company fully increased its capital according to the original shareholding ratio, and the registration has been completed.

14. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Investments in associates :

	December 31
	2024	2023
Unlisted shares
Material associate-Lioho Machine Works Ltd.	$ 11,347,598	$ 10,804,634
Associates that are not individually material-Bao Horng Cement Corp.	39,663	-
	$ 11,407,261	$ 10,804,634

1). Material associates

Proportion of Ownership and Voting Rights
December 31
Name of Associate	2024 2023
Lioho Machine Works Ltd.	29.86% 29.86%

The summarized financial information below represents amounts shown in the financial statements of Lioho Machine Works Ltd. which were prepared in accordance with IFRSs and adjusted by the Group for equity accounting purposes.

	December 31
	2024	2023
Equity	$ 38,002,890	$ 36,184,500
	For the Year Ended December 31
	2024	2023
Operating revenue	$ 8,900,037	$ 10,690,916
Net profit for the year	$ 1,590,817	$ 2,815,952
Other comprehensive gain	$ 1,727,573	($ 689,915)
Dividends received from Lioho Machine Works Ltd.	$ 447,907	$ 447,907

2). Associates that are not individually material

	For the Year Ended December 31
	2024	2023
The share of the Group
Total net income and other comprehensive income for the current year	$ 838	$ -

The Group originally held a shareholding ratio 13.96% of Bao Horng Cement Corp., acquired an additional shareholding ratio 12.96% for cash amounting to NT$28,320 thousand in November 2024, resulting in a cumulative holding of over 20%, which gives it significant influence over Bao Horng Cement Corp.. The Group has derecognized the previously recorded FVTOCI and has adopted the equity method to measure these assets. As of the date of this consolidated financial report's issuance, the price allocation report reflecting significant influence over Bao Horng Cement Corp. has not yet been completed.

Refer to Table 5 "Information on Investees" for the nature of activities, principal place of business and country of incorporation of the associates.

PROPERTY, PLANT AND EQUIPMENT

	Land	Buildings	Machinery and equipment	Transportation equipment	Other equipment	Construction in progress	Total
Cost
Balance at January 1, 2023	$ 5,930,326	$ 2,058,253	$ 3,472,489	$ 677,264	$ 783,083	$ 960,524	$ 13,881,939
Additions	-	6,507	22,554	51,100	31,798	68,020	179,979
Disposals	( 504,586)	-	( 8,356)	( 9,512)	( 7,567)	-	( 530,021)
Reclassification	-	24,007	-	-	21,182	( 45,189)	-
Balance at December 31, 2023	$ 5,425,740	$ 2,088,767	$ 3,486,687	$ 718,852	$ 828,496	$ 983,355	$ 13,531,897
Accumulated depreciation and impairment
Balance at January 1, 2023	$ -	$ 1,204,473	$ 3,263,326	$ 540,990	$ 584,446	$ 377,166	$ 5,970,401
Depreciation expense	-	30,730	38,615	36,243	22,856	-	128,444
Disposals	-	-	( 8,356)	( 9,332)	( 7,567)	-	( 25,255)
Impairment loss	-	-	-	-	-	116,111	116,111
Balance at December 31, 2023	$ -	$ 1,235,203	$ 3,293,585	$ 567,901	$ 599,735	$ 493,277	$ 6,189,701
Net carrying amounts at December 31, 2023	$ 5,425,740	$ 853,564	$ 193,102	$ 150,951	$ 228,761	$ 490,078	$ 7,342,196
Cost
Balance at January 1, 2024	$ 5,425,740	$ 2,088,767	$ 3,486,687	$ 718,852	$ 828,496	$ 983,355	$ 13,531,897
Additions	-	13,704	95,376	36,749	20,472	30,498	196,799
Disposals	-	-	( 4,807)	( 41,241)	( 2,186)	-	( 48,234)
Reclassification	-	235	791,910	-	165,364	( 957,509)	-
Transfer from investment properties	40,225	22,947	-	-	-	-	63,172
Balance at December 31, 2024	$ 5,465,965	$ 2,125,653	$ 4,369,166	$ 714,360	$ 1,012,146	$ 56,344	$ 13,743,634
Accumulated depreciation and impairment
Balance at January 1, 2024	$ -	$ 1,235,203	$ 3,293,585	$ 567,901	$ 599,735	$ 493,277	$ 6,189,701
Depreciation expense	-	30,402	57,298	43,427	31,249	-	162,376
Disposals	-	-	( 4,807)	( 39,594)	( 2,141)	-	( 46,542)
Reclassification	-	-	468,872	-	24,405	-	493,277
Transfer from investment properties	-	22,315	-	-	-	-	22,315
Balance at December 31, 2024	$ -	$ 1,287,920	$ 3,814,948	$ 571,734	$ 653,248	$ -	$ 6,327,850
Net carrying amounts at December 31, 2024	$ 5,465,965	$ 837,733	$ 554,218	$ 142,626	$ 358,898	$ 56,344	$ 7,415,784

The Group sold the land of Yancheng Section, Nan District, Tainan City to non-related party in September 2023. The gains on the sale were NT$611,911 thousand and included in non-operating income.

There are indications of impairment due to the expected lower production capacity of certain equipment in our Lujhu gypsum board plant. Therefore, the Group performed an impairment test in 2023, recognized an impairment loss of NT$116,111 thousand in non-operating expenses.

The future recoverable amount is determined using the replacement cost method, taking into account all costs required to replace or build an entirely new asset under the current condition, less the physical depreciation, functional depreciation, and economic depreciation incurred to the assets of appraisal.

The above items of property, plant and equipment are depreciated on a straight-line basis over the estimated useful lives as follows:

Buildings
Main buildings	20-60 years
Outbuildings and construction	2-16 years
Engineering systems	9-16 years
Machinery equipment	2-21 years
Transportation equipment	2-7 years
Other equipment	2-20 years

29 -

16. LEASE ARRANGEMENTS

a. Right-of-use assets

	December 31
	2024	2023
Carrying amounts
Land	$ 923	$ 1,682
Buildings	155,648	200,986
Transportation equipment	15,189	19,760
	$ 171,760	$ 222,428
	For the Year Ended December 31
	2024	2023
Additions to right-of-use assets	$ 2,473	$ 10,626
Depreciation charge for right-of-use assets
Land	$ 759	$ 836
Buildings	47,048	46,932
Transportation equipment	5,357	4,379
	$ 53,164	$ 52,147

b. Lease liabilities

	December 31
	2024	2023
Carrying amounts
Current	$ 52,590	$ 53,990
Non-current	$ 125,529	$ 175,887

Ranges of discount rates for lease liabilities were as follows:

	December 31
	2024	2023
Land	1.71%	1.71%-2.36%
Buildings	0.9%-1.71%	0.9%-1.71%
Transportation equipment	0.9%-1.95%	0.9%-1.95%

c. Material lease-in activities and terms

The Group leases certain land, plant and equipment for the use of operations with lease terms of 3-10 years. The Group is prohibited from subleasing or transferring all or any portion of the land and buildings leased from Taiwan International Port Corporation without the lessor’s consent.

d. Other lease information

	For the Year Ended December 31
	2024	2023
Expenses relating to short-term leases	$ 22,644	$ 21,496
Expenses relating to low-value assets leases	$ 1,065	$ 765
Total cash outflow for leases	$ 79,693	$ 76,139

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

17. INVESTMENT PROPERTIES

	Land	Buildings	Total
Cost
Balance at January 1 and December 31, 2023	$ 876,874	$ 145,272	$ 1,022,146
Accumulated depreciation and impairment
Balance at January 1, 2023	$ 62,264	$ 118,002	$ 180,266
Depreciation expense	-	1,163	1,163
Balance at December 31, 2023	$ 62,264	$ 119,165	$ 181,429
Net carrying amounts at December 31, 2023	$ 814,610	$ 26,107	$ 840,717
	Land	Buildings	Total
Cost
Balance at January 1, 2024	$ 876,874	$ 145,272	$ 1,022,146
Transfer to property, plant and equipment	( 40,225)	( 22,947)	( 63,172)
Balance at December 31, 2024	$ 836,649	$ 122,325	$ 958,974
Accumulated depreciation and impairment
Balance at January 1, 2024	$ 62,264	$ 119,165	$ 181,429
Depreciation expense	-	1163	1,163
Transfer to property, plant and equipment	-	( 22,315)	( 22,315)
Balance at December 31, 2024	$ 62,264	$ 98,013	$ 160,277
Net carrying amounts at December 31, 2024	$ 774,385	$ 24,312	$ 798,697

As of December 31, 2024 and 2023, the Group has not yet completed the property registration of the land, both are amounting to NT$113,247 thousand because of the restriction in the regulations but the property has been secured with mortgage registration.

The Group are depreciated using the straight-line method over 10-61 years of useful lives.

The fair values of the Group as of December 31, 2024 and 2023 were NT$2,352,345 thousand and NT$2,072,466 thousand, respectively. The fair values were determined by the independent appraisal company on each balance sheet date in the past three years with reference to similar real estate. The fair value of the transaction price is based on market evidence, or the Group's management refers to the actual transaction price in nearby areas.

Gross lease payments receivable of the future under operating leases of investment properties were as follows:

	December 31
	2024	2023
Year 1	$ 11,449	$ 14,702
Year 2	8,100	7,167
Year 3	8,028	7,176
Year 4	7,970	7,176
Year 5	4,302	7,118
Year 5 onwards	11,900	3,451
	$ 51,749	$ 46,790

18. OTHER INTANGIBLE ASSETS

	Patents	Licenses and Franchises	Trademarks	Computer Software	Total
Cost
Balance at January 1, 2023	$ 9,082	$ 5,762	$ 44	$ 14,751	$ 29,639
Additions	649	-	-	2,152	2,801
Balance at December 31, 2023	$ 9,731	$ 5,762	$ 44	$ 16,903	$ 32,440
Accumulated amortization
Balance at January 1, 2023	$ 6,008	$ 4,104	$ 14	$ 7,521	$ 17,647
Amortization expense	923	237	4	2,981	4,145
Balance at December 31, 2023	$ 6,931	$ 4,341	$ 18	$ 10,502	$ 21,792
Net carrying amounts at December 31, 2023	$ 2,800	$ 1,421	$ 26	$ 6,401	$ 10,648
Cost
Balance at January 1, 2024	$ 9,731	$ 5,762	$ 44	$ 16,903	$ 32,440
Additions	764	-	-	985	1,749
Balance at December 31, 2024	$ 10,495	$ 5,762	$ 44	$ 17,888	$ 34,189
Accumulated amortization
Balance at January 1, 2024	$ 6,931	$ 4,341	$ 18	$ 10,502	$ 21,792
Amortization expense	951	237	4	2,674	3,866
Balance at December 31, 2024	$ 7,882	$ 4,578	$ 22	$ 13,176	$ 25,658
Net carrying amounts at December 31, 2024	$ 2,613	$ 1,184	$ 22	$ 4,712	$ 8,531

The above intangible assets are amortized on a straight-line basis over their estimated useful lives as follows:

Patents	2-20 years
Licenses and franchises	10 years
Trademarks	10 years
Computer Software	2-5 years

31 -

19. BORROWINGS

a. Short-term borrowings

	December 31
	2024	2023
Unsecured borrowings
Line of credit borrowings	$ 2,100,000	$ 1,700,000
The range of interest rates	1.85%-1.99%	1.75%-1.88%

b. Short-term bills payable

	December 31
	2024	2023
Commercial papers	$ 170,000	$ 275,000
Less: Unamortized discount on bills payable	404	215
	$ 169,596	$ 274,785

The Group did not provide any collateral over these balance.

Outstanding short-term bills payable as follows:

Promissory Institutions	Nominal Amount	Discount Amount	Carrying Value	Interest Rate
December 31, 2024
Taiwan Finance Co., Ltd.	$ 100,000	$ 238	$ 99,762	2.118%
Ta Ching Bills Finance Co., Ltd.	70,000	166	69,834	2.118%
	$ 170,000	$ 404	$ 169,596
December 31, 2023
Taiwan Finance Co., Ltd.	$ 80,000	$ 28	$ 79,972	1.798%
Mega Bills Finance Co., Ltd.	195,000	187	194,813	1.828%-1.928%
	$ 275,000	$ 215	$ 274,785

c. Long-term borrowings

	December 31
	2024	2023
Unsecured borrowings
Line of credit borrowings	$ -	$ 500,000
Less: Long-term borrowings due within one year	-	500,000
Long-term borrowings	$ -	$ -

The Group obtained new unsecured bank loans in February and September 2023, amounting to $280,000 thousand and $220,000 thousand respectively. These loans are due in March and October 2024, with annual interest rates of 1.795% as of December 31, 2023, respectively. The Group repaid the loans in advance in March 2024.

20. NOTES PAYABLE AND ACCOUNTS PAYABLE (INCLUDING RELATED PARTIES)

Notes payable and accounts payable (including related parties) arose from operating activities. The average credit period on purchases is 30-65 days. The Group has financial risk management policies in place to ensure that all payables are paid within the pre-agreed credit terms. Therefore, no interest was charged on the payables.

21. OTHER PAYABLES AND OTHER LIABILITIES

	December 31
	2024	2023
Current
Other payable
Payable for salaries or bonus	$ 131,426	$ 127,931
Payable for remuneration to directors	56,571	53,921
Payable for remuneration to employees	55,038	50,211
Payable for freight	19,585	20,625
Payable for annual leave	15,213	12,883
Payable for taxes	11,994	9,002
Payables for equipment	2,105	11,194
Others	127,378	120,253
	$ 419,310	$ 406,020
Other liabilities
Receipts in advance	$ 16,501	$ 7,161
Temporary receipts	11,309	14,673
Others	199	246
	$ 28,009	$ 22,080

RETIREMENT BENEFIT PLANS

a. Defined contribution plans

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

b. Defined benefit plans

The defined benefit plan adopted by the Group in accordance with the Labor Standards Law is operated by the government. Pension benefits are calculated on the basis of the length of service and average monthly salaries of the 6 months before retirement. The Group contributes amounts equal to 2%–3% of total monthly salaries and wages to a pension fund administered by the pension fund monitoring committee. Pension contributions are deposited in the Bank of Taiwan in the committee's name. Before the end of each year, the Group assesses the balance in the pension fund. If the amount of the balance in the pension fund is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Group is required to fund the difference in one appropriation that should be made before the end of March of the next year. The pension fund is managed by the Bureau of Labor Funds, Ministry of Labor (“the Bureau”); the Group has no right to influence the investment policy and strategy.

In 2022 and 2023, the Company and Universal Ready-mixed Concrete Industry Co., Ltd. fully settled all employee retirement benefits and applied to the Bureau of Labor Insurance, MOL to close the pension fund. We are approval from the bureau to receive the remaining balance in the pension fund during 2023 and 2024.

The amounts included in the consolidated balance sheets in respect of the Group’s defined benefit plans were as follows:

	December 31
	2024	2023
Present value of defined benefit obligation	$ 2,036	$ 1,881
Fair value of plan assets	( 11,776)	( 16,858)
Net defined benefit liability	($ 9,740)	($ 14,977)

Movements in net defined benefit liability were as follows:

	Present Value of the Defined Benefit Obligation	Fair Value of the Plan Assets	Net Defined Benefit Liability
Balance at January 1, 2023	$ 22,704	($ 38,128)	($ 15,424)
Service cost
Current service cost	250	-	250
Liquidation benefit	- 3,416	2,951	( 465)
Net interest expense (income)	270	( 281)	( 11)
Recognized in profit or loss	- 2,896	2,670	( 226)
Remeasurement
Return on plan assets (excluding amounts included in net interest)	-	( 44)	( 44)
Actuarial loss - changes in demographic assumptions	65	-	65
Actuarial loss - changes in financial assumptions	162	-	162
Actuarial loss - experience adjustments	569	-	569
Recognized in other comprehensive income	796	( 44)	752
Contributions from the employer	-	( 79)	( 79)
Benefits paid	( 18,723)	18,723	-
Balance at December 31, 2023	$ 1,881	($ 16,858)	($ 14,977)
Net interest expense (income)	155	( 4,300)	- 4,145
Recognized in profit or loss	155	( 4,300)	- 4,145
Contributions from the employer	-	( 105)	( 105)
Close the pension fund	-	9,487	9,487
Balance at December 31, 2024	$ 2,036	($ 11,776)	($ 9,740)

An analysis by function of the amounts recognized in profit or loss in respect of the defined benefit plans is as follows:

	December 31
	2024	2023
Operating costs	($ 1,665)	$	-
Selling and marketing expenses	( 447)		-
General and administrative expenses	( 1,941)	(	226)
Research and development expenses	( 92)		-
	($ 4,145)	($	226)

Through the defined benefit plans under the Labor Standards Law, the Group is exposed to the following risks:

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 deposits with local banks.
Interest risk: A decrease in the government and 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 plan's debt investments.
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 salary 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
	2024	2023
Discount rate	-	1.28%
Expected rate of salary increase	-	1.5% - 1.625%

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

	December 31
	2024	2023
Discount rate
0.5% increase	-	($ 89)
0.5% decrease	-	$ 96
Expected rate of salary increase
0.5% increase	-	$ 86
0.5% decrease	-	($ 81)

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
	2024	2023
The expected contributions to the plan for the next year	-	$ 109
The average duration of the defined benefit obligation	-	2 – 24 years

34 -

23. EQUITY

a. Share capital

	December 31
	2024	2023
Number of shares authorized (thousands)	1,000,000	1,000,000
Capital stock authorized	$ 10,000,000	$ 10,000,000
Number of shares issued and fully paid (thousands)	686,682	673,217
Capital stock issued	$ 6,866,818	$ 6,732,175

The Corporation’s shareholders meeting resolved to distribute share dividends of 19,608 thousand shares with par value of $10 on June 16, 2023, to increase the authorized share capital to $6,732,175 thousand. Which was approved by the Financial Supervisory Commission (“FSC”) on July 3, 2023. The record date was July 29, 2023 and the change of registration was completed on August 16, 2023.

The Corporation’s shareholders meeting resolved to distribute share dividends of 13,464 thousand shares with par value of $10 on June 21, 2024, to increase the authorized share capital to $6,866,818 thousand. Which was approved by the Financial Supervisory Commission (“FSC”) on June 27, 2024. The record date was July 22, 2024 and the change of registration was completed on August 7, 2024.

b. Capital surplus

	December 31
	2024	2023
May be used to offset a deficit, distributed as cash dividends, or transferred to share capital (Note)
Treasury share transactions	$ 21,606	$ 21,606
Differences between the actual equity value of subsidiaries acquired or disposed and its carrying amounts.	56,451	57,377
May be used to offset a deficit only
Changes in interests in associates accounted for using the equity method	22,260	22,260
Overdue dividends not collected by shareholders	22,469	22,476
	$ 122,786	$ 123,719

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

c. Retained earnings and dividend policy

Under the dividend policy as set forth in the Company’s Articles, if the Company makes profit in a fiscal year, the profit shall be first utilized to pay taxes, offset losses of previous years, set aside as legal reserve with 10% of the remaining profit, set aside or reverse a special reserve in accordance with the laws and regulations, and lastly, together with any undistributed retained earnings, serve as the basis of a distribution plan proposed by the Company’s board of directors in accordance with the resolution of the shareholders’ meeting pertaining to the distribution of dividends and bonus to shareholders. The policies on the distribution of employees’ compensation and remuneration of directors in the Company’s Articles refer to Note 25-g.

According to the Company’s Articles, the bonus to shareholders can be distributed by way of stock dividends and cash dividends. However, the ratio for stock dividend shall not exceed 50% of the total distribution unless the value of cash dividends is less than $0.5 per share. The distribution of dividends can be adjusted by shareholders based on the Company’s profit, capital status, and operating requirement.

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

When a special reserve is appropriated for cumulative net amount of other deductions from equity from prior period and cumulative net increases in fair value measurement of investment properties from prior period, the sum of net profit for current period and items other than net profit that are included directly in the unappropriated earnings for current period if the prior unappropriated earnings is not sufficient.

The appropriations of 2023 and 2022 earnings have been proposed by the Company’s regular shareholders meeting on June 21, 2024 and June 16, 2023, respectively. The appropriations and dividends per share were as follows:

Legal reserve
$ 210,852
$ 204,243

Cash dividends
$ 1,211,791
$ 980,414

Stock dividends
$ 134,643
$ 196,083

Cash dividends per share (NT$)
$ 1.8
$ 1.5

Stock dividends per share (NT$)
$ 0.2
$ 0.3

Legal reserve
$ 149,953

Cash dividends
$ 1,167,359

Cash dividends per share (NT$)
$ 1.7

The appropriation of earnings for 2024 will subject to the resolution of the shareholders meeting.

d. Special reserves

December 31
2024		2023
$ 3,185,793		$ 3,185,793

Because the increase in the retained earnings caused by the first-time adoption of IFRSs was insufficient to be appropriated for provision, the Company had provided for special reserve based on the increase of the retained earnings, an adjustment that was recorded per Company policy on first-time adoption.

e. Other equity items

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

For the year Ended December 31
2024		2023
Balance at January 1	($ 1,009,492)	($ 799,476)
Recognized for the year
Share from associates accounted for using the equity method	505,821	( 210,016)
Balance at December 31	($ 503,671)	($ 1,009,492)

2) Unrealized gain (loss) on financial assets at FVTOCI

For the year Ended December 31
2024		2023
$ 1,743,007		$ 1,711,898
1,002,158		31,022
( 481)		848
1,001,677		31,870
( 17,242)		( 1,620)
-		859
$ 2,727,442		$ 1,743,007

3) Remeasurement of defined benefit plans

For the year Ended December 31
2024		2023
$ 91,254		$ 89,394
-		( 550)
-		110
10,513		2,300
$ 101,767		$ 91,254

Balance at January 1
Balance at January 1
Remeasurement
Remeasurement on defined benefit plans related income tax
Share from associates accounted for using the equity method
Balance at December 31

4) Other equity items

	For the year Ended December 31
	2024	2023
Balance at January 1 and December 31	($ 17,217)	($ 17,217)

f. Non-controlling interests

	For the year Ended December 31
	2024	2023
Balance at January 1	$ 808,952	$ 608,574
Net profit for the year	48,051	239,494
Other comprehensive income (loss) during the year
Unrealized gain (loss) on financial assets at FVTPL	205	122
Remeasurement on defined benefit plans	-	(202)
Remeasurement on defined benefit plans related income tax	-	40
Non-controlling dividend distribution	(58,735)	(38,742)
Acquisition of non-controlling interests in the subsidiary (Note 28)	(6,344)	(334)
Cash capital increase for non-controlling interests	6,678	-
Balance at December 31	$ 798,807	$ 808,952

REVENUE

	For the year Ended December 31
	2024	2023
Revenue from contracts with customers
Revenue from sale of goods	$ 7,949,958	$ 7,798,798
Revenue from rendering of services	3,776	3,564
	$ 7,953,734	$ 7,802,362

a. Contract balances

	December 31		January 1,
	2024	2023	2023
Notes and accounts receivable (Including related parties)	$ 1,946,217	$ 2,172,345	$ 1,983,282
Contract assets (included in other current assets)
Sale of goods	$ 1,023	$ 1,850	$ 7,744
Less: Loss allowance	205	370	1,549
	$ 818	$ 1,480	$ 6,195
Contract liabilities - current
Sale of goods	$ 2,267	$ 2,359	$ 2,084

In accordance with the terms of the contract, the Group recognizes the construction retention money as contract assets before completing the contractual obligations, and considers the historical default loss rates and the state of the industry in estimating expected credit loss.

	December 31
	2024	2023
Expected credit loss rate	20%	20%
Gross carrying amount	$ 1,023	$ 1,850
Loss allowance (Lifetime ECL)	(205)	(370)
	$ 818	$ 1,480

The movements of the loss allowance of contract assets refer to Note 11.

b. Disaggregation of revenue from contracts with Customers

	For the year Ended December 31
	2024	2023
Concrete	$ 5,127,395	$ 5,001,709
Cement	1,722,759	1,710,966
Gypsum board panels	1,077,450	1,053,982
Others	26,130	35,705
	$ 7,953,734	$ 7,802,362

PROFIT BEFORE INCOME TAX

a. Interest income

	For the year Ended December 31
	2024	2023
Bank deposits	$ 4,453	$ 6,132
Bonds with repurchase agreements	11,500	3,845
Others	36	-
	$ 15,989	$ 9,977

b. Other income

	For the year Ended December 31
	2024	2023
Rental income - investment properties (Note 17)	$ 19,528	$ 17,748
Dividend income	226,710	231,873
Litigation Settlement Revenue	11,464	-
Others	27,807	27,034
	$ 285,509	$ 276,655

c. Other gains and losses

	For the year Ended December 31
	2024	2023
Net foreign exchange gains (losses)	$ 1,497	$ 942
Gain on disposal of property, plant and equipment	9,948	612,623
Gain (Loss) in financial assets
Financial assets mandatorily classified as at FVTPL	2,702	42,755
Impairment loss on assets	-	( 116,111)
Others	1,065	( 3,832)
	$ 15,212	$ 536,377

d. Interest expense

	For the year Ended December 31
	2024	2023
Interest on bank loans	$ 40,209	$ 52,336
Interest on lease liabilities	2,722	3,335
	$ 42,931	$ 55,671

e. Depreciation and amortization

	For the year Ended December 31
	2024	2023
Property, plant and equipment	$ 162,376	$ 128,444
Right-of-use assets	53,164	52,147
Investment properties	1,163	1,163
Intangible assets	3,866	4,145
	$ 220,569	$ 185,899

38 -

An analysis of depreciation - by function
Operating costs	$ 147,684	$ 119,627
Operating expenses	67,856	60,964
Others (included in non-operating income and expense)	1,163	1,163
	$ 216,703	$ 181,754
An analysis of amortization - by function
Operating costs	$ 546	$ 572
Operating expenses	3,320	3,573
	$ 3,866	$ 4,145

f. Employee benefits expense

	For the year Ended December 31
	2024	2023
Short-term employee benefits expense	$ 620,869	$ 613,673
Salaries	59,960	59,504
Labor and health insurance	86,527	79,811
Others	767,356	752,988
Post-employment benefits
Defined contribution plans	29,029	28,141
Defined benefit plans (Note 22)	( 4,145)	( 226)
	24,884	27,915
	$ 792,240	$ 780,903
An analysis of employee benefits expense - by function
Operating costs	$ 542,793	$ 497,677
Operating expenses	249,447	283,226
	$ 792,240	$ 780,903

g. Employees' compensation and remuneration of directors

The Company accrued employees' compensation and remuneration of directors at the rates no less than 1% and no higher than 3%, respectively, of net profit before income tax, employees' compensation, and remuneration of directors.

The employees' compensation and remuneration of directors for the year ended December 31, 2024 and 2023 have been approved on March 10, 2025 and March 15, 2024, respectively as follows:

Accrual rate	For the year Ended December 31
	2024	2023
Employees' compensation	2.98%	1.80%
Remuneration of directors	2.76%	1.80%
Amount	For the year Ended December 31
	2024	2023
Employees' compensation	$ 53,000	$ 42,971
Remuneration of directors	$ 49,000	$ 42,971

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

There was no difference between the actual amounts of employees' compensation and remuneration of directors and supervisors paid and the amounts recognized in the consolidated financial statements for the year ended December 31, 2023 and 2022.

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

INCOME TAX

a. Income tax recognized in profit or loss

Major components of income tax expense were as follows:

	For the year Ended December 31
	2024	2023
Current tax
In respect of the current period	$ 222,249	$ 266,429
Additional unappropriated earnings	63,395	37,325
Adjustments for prior years	( 5,552)	( 5,340)
	280,092	298,414
Deferred tax
In respect of the current period	( 3,334)	( 63,074)
	$ 276,758	$ 235,340

A reconciliation of accounting profit and income tax expenses is as follows:

	For the year Ended December 31
	2024	2023
Profit before tax	$ 1,807,096	$ 2,582,592
Income tax expense calculated at the statutory rate	$ 361,419	$ 516,518
Tax-exempt income	( 45,342)	( 267,334)
Non-deductible expenses (income) in determining taxable income	( 94,867)	( 76,624)
Unrecognized deductible temporary differences	( 5,236)	23,229
Net operating loss carryforwards used	3,902	3,308
Loss carryforwards utilized for the current year	( 961)	( 160)
Additional income tax under the Alternative Minimum Tax Act	-	2,500
Additional income tax on unappropriated earnings	63,395	37,325
Land value increment tax	-	1,918
Income tax adjustments on prior years	( 5,552)	( 5,340)
	$ 276,758	$ 235,340

b. Income tax recognized in other comprehensive income

	For the year Ended December 31
	2024	2023
Deferred tax
In respect of the current year
Remeasurement of defined benefit plans	$ -	$ 150

c. Current tax assets and liabilities

	December 31
	2024	2023
Current tax assets
Income tax receivables	$ 764	$ -
Current tax liabilities
Income tax payable	$ 184,723	$ 157,831

d. Deferred tax assets and liabilities

The movements of deferred tax assets and deferred tax liabilities were as follows:

For the year of 2024

	Opening Balance	Acquired in a business combination	Recognized in Profit or Loss	Recognized in Other Comprehensive Income	Closing Balance
Deferred Tax Assets
Temporary differences
Allowance for impairment loss	$ 825	$ -	$ 1	$ -	$ 826
Defined benefit obligation	5,659	-	( 5,536)	-	123
Unrealized exchange losses	160	-	- 160	-	-
Unrealized loss for losses of Inventory valuation and obsolescence	132	-	99	-	231
Unrealized payable promotion expenses	8,012	-	2,236	-	10,248
Loss carryforwards	577	-	- 111	-	466
Others	1,146	-	272	-	1,418
	$ 16,511	$ -	-$ 3,199	$ -	$ 13,312
Deferred Tax Liabilities
Temporary differences
Land value increment tax	$ 1,236,442	$ -	$ -	$ -	$ 1,236,442
Defined benefit obligation	8,665	-	( 6,639)	-	2,026
Unrealized exchange gains	-	-	106	-	106
	$ 1,245,107	$ -	($ 6,533)	$ -	$ 1,238,574

For the year of 2023

	Opening Balance	Acquired in a business combination	Recognized in Profit or Loss	Recognized in Other Comprehensive Income	Closing Balance
Deferred Tax Assets
Temporary differences
Allowance for impairment loss	$ 1,254	$ -	($ 429)	$ -	$ 825
Defined benefit obligation	5,645	-	( 76)	90	5,659
Unrealized exchange losses	-	-	160	-	160
Unrealized loss for losses of Inventory valuation and obsolescence	255	-	( 123)	-	132
Unrealized payable promotion expenses	5,326	-	2,686	-	8,012
Loss carryforwards	-	-	577	-	577
Others	1,418	-	( 272)	-	1,146
	$ 13,898	$ -	$ 2,523	$ 90	$ 16,511
Deferred Tax Liabilities
Temporary differences
Land value increment tax	$ 1,296,376	$ -	($ 59,934)	$ -	$ 1,236,442
Defined benefit obligation	8,725	-	-	( 60)	8,665
Unrealized exchange gains	617	-	( 617)	-	-
	$ 1,305,718	$ -	($ 60,551)	($ 60)	$ 1,245,107

e. Deductible temporary differences, unused loss carryforwards and unused investment credits for which no deferred tax assets have been recognized in the consolidated balance

	December 31
	2024	2023
Loss carryforwards
Expire in 2034	$19,512	$ -
Expire in 2033	16,539	19,423
Expire in 2032	9,059	9,059
Expire in 2031	3,887	3,887
Expire in 2030	8,003	8,003
Expire in 2029	10,273	10,273
Expire in 2028	57,779	57,779
Expire in 2027	69,078	69,078
Expire in 2026	47,759	47,759
Expire in 2025	56,898	58,819
Expire in 2024	-	40,128
	$ 298,787	$ 324,208
	December 31
---	---	---
	2024	2023
Deductible temporary differences
Inventory write-down and obsolescence losses	$ 31,818	$ 34,027
Asset impairment losses	651,904	677,870
	$ 683,722	$ 711,897

f. Income tax return assessments

The corporate income taxes declared by its subsidiary Uneo Inc., Li-Yong Development Co., Ltd., Kaohsiung Pier Transportation Co., Ltd., Chiayi Ready-mixed Concrete Industry Co., Ltd., Huan-Chung International Co., Ltd., UCC Investment Co., Ltd., Tainan Ready-mixed Concrete Industry Co., Ltd., and Universal Ready-mixed Concrete Industry Co., Ltd., till the end of 2022, approved by the tax collection authority.

Huan-Chung

27. EARNINGS PER SHARE

The weighted average number of shares outstanding used in the earnings per share computation was adjusted retrospectively for the issuance of bonus shares. The record date was July 22, 2024. The basic and diluted earnings per share adjusted retrospectively for the year ended December 31, 2023 were as follows:

Unit: NT$ Per Share

	Before Retrospective Adjustment	After Retrospective Adjustment
Basic earnings per share	$3.13	$3.07
Diluted earnings per share	$3.12	$3.06

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

Net profit for the year

For the year Ended December 31
	2024	2023
Net profit attributable to owners of the Corporation	$ 1,482,287	$ 2,107,758

Number of shares

Unit: Thousand shares

For the year Ended December 31
	2024	2023
Weighted average number of ordinary shares in computation of basic earnings per share	686,682	686,682
Effect of potentially dilutive ordinary shares:
Employees’ compensation	2,197	1,801
Weighted average number of ordinary shares in the computation of diluted earnings per share	688,879	688,483

The Group may settle compensation paid to employees in cash or shares; therefore, the Group assumes that the entire amount of the compensation or bonus will be settled in shares, and the resulting potential shares will be 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.

28. EQUITY TRANSACTIONS WITH NON-CONTROLLING INTERESTS

In July 2024 and November 2023, the Group acquired shares held by the non-controlling interest of Universal Concrete Industrial Corporation. And its shareholding increased from 59.05% to 60.15% and 58.99% to 59.05%.

The above transactions were accounted for as equity transactions since the Group did not cease to have control over these subsidiaries.

	Obtaining non-controlling interests
	2024	2023
Cash payments	($ 7,270)	($ 113)
The carrying amount of the subsidiary's net assets that shall be transferred to non-controlling interest based on relative equity changes	6,344	334
Difference in equity transactions	($ 926)	$ 221
Adjustment accounts for difference in equity transactions
Capital surplus – Actual Difference between consideration and carrying amount of subsidiaries acquired or disposed	($ 926)	$ 221

29. CASH FLOWS INFORMATION

Cash used in obtaining property, plant and equipment by the Group during 2024 and 2023 were as follows:

	For the year Ended December 31
	2024	2023
Increase in property, plant and equipment	$ 196,799	$ 179,979
Decrease in payables for equipment	9,089	164
Increase (decrease) in prepayments for equipment	( 26,241)	15,427
Paid in cash	$ 179,647	$ 195,570

30. CAPITAL MANAGEMENT

The Group needs to maintain sufficient capital to fulfill the Group’s requirements of capital to build and expand its production facilities and equipment. Therefore, the capital management of the Group shall ensure on the necessary financial resources and a comprehensive operational plan to fulfill the future demand of working capital, capital expenditures, research and development expenses, debts repayment and dividend distributions.

42 -

31. FINANCIAL INSTRUMENTS

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

The Group believes that the carrying amounts of financial instruments that are not measured at fair value, including cash and cash equivalents, accounts receivable, financial assets at amortized cost, short-term loans, short-term bills payable, accounts payable, long-term borrowings due within one year, and guarantee deposits received, recognized in the financial statements approximate their fair value.

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

1) Fair value hierarchy

December 31, 2024

	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Listed shares	$ 8,887	$ -	$ -	$ 8,887
Mutual funds	372	-	-	372
Limited partnership	-	-	40,948	40,948
	$ 9,259	$ -	$ 40,948	$ 50,207
Financial assets at FVTOCI
Investments in equity instruments
Listed shares	$ 3,134,764	$ 1,001,880	$ -	$ 4,136,644
Unlisted shares	-	-	1,549,474	1,549,474
	$ 3,134,764	$ 1,001,880	$ 1,549,474	$ 5,686,118

December 31, 2023

	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Listed shares	$ 13,578	$ -	$ -	$ 13,578
Mutual funds	394	-	-	394
Limited partnership	-	-	47,558	47,558
	$ 13,972	$ -	$ 47,558	$ 61,530
Financial assets at FVTOCI
Investments in equity instruments
Listed shares	$ 2,691,567	$ 591,800	$ -	$ 3,283,367
Unlisted shares	-	-	1,399,204	1,399,204
	$ 2,691,567	$ 591,800	$ 1,399,204	$ 4,682,571

There were no transfers between Level 1 and 2 in 2024 and 2023.

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

For the year of 2024

	Financial assets at fair value through profit or loss	Financial assets at fair value through other comprehensive income	Total
Balance at January 1	$ 47,558	$ 1,399,204	$ 1,446,762
Additions	-	13,263	13,263
Transfer to equity method	-	( 13,263)	( 13,263)
Recognized in profit (other gains and losses)	( 6,610)	-	( 6,610)
Recognized in other comprehensive income (unrealized valuation gain or loss on financial assets at fair value through other comprehensive income)	-	150,270	150,270
Balance at December 31	$ 40,948	$ 1,549,474	$ 1,590,422

For the year of 2023

	Financial assets at fair value through profit or loss	Financial assets at fair value through other comprehensive income	Total
Balance at January 1	$ 43,733	$ 1,890,604	$ 1,934,337
Recognized in profit (other gains and losses)	3,825	-	3,825
Recognized in other comprehensive income (unrealized valuation gain or loss on financial assets at fair value through other comprehensive income)	-	( 477,710)	( 477,710)
Recognized in income (dividend income)	-	11,746	11,746
Return of capital from reduction of share capital	-	( 23,311)	( 23,311)
Return of capital from liquidation	-	( 2,125)	( 2,125)
Balance at December 31	$ 47,558	$ 1,399,204	$ 1,446,762

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

Category of financial instrument

Investments in equity instruments

Purchase of stock via private offering which is subject to a three-year-lock-up period. In light of the impact on the target to be measured due to the restriction of transaction, a discount is imposed to reflect the restricted liquidity of the stock. The target to be measure is the stock of a public listed company. The Closing price at the day of measurement was adopted as the fair value of an unrestricted stock price. The fair value of the restricted stock price is then derived via the Black-Scholes model.

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

a) The fair values of unlisted equity securities in ROC was estimated by the marketing valuation method. This method is based on the industry category, evaluation and operations of similar companies, or the net equity of the companies.
b) Limited partnership was estimated based on the net equity.

c. Categories of financial instruments

	December 31
	2024	2023
Financial assets
Financial assets at FVTPL
Financial assets mandatorily classified as at FVTPL	$ 50,207	$ 61,530
Financial assets at amortized cost (Note 1)	3,628,732	3,735,589
Financial assets at FVTOCI – Investments in equity instruments	5,686,118	4,682,571
Financial liabilities
Financial liabilities at amortized cost (Note	3,540,251	3,854,172

1) The balances include financial assets at amortized cost, which comprise cash and cash equivalents, notes receivable, net accounts receivable (including related parties), other receivables, and financial assets at amortized cost (current and non-current).
2) The balances included financial liabilities at amortized cost, which comprise short-term borrowings, short-term bills payable, notes payable, accounts payable (including related parties), other payables, guarantee deposits received and long-term borrowings due within one year.

d. Financial Risk Management Objectives and Policies

The Group’s major financial instruments include investments in equity instruments, accounts receivable, accounts payables, loans and lease liabilities. The financial management department of the Group provides services to the business departments, coordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the Group through internal risk reports which analyze the exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest risk and other price risk), credit risk and liquidity risk.

1) Market risk

The Group’s activities exposed it primarily to the financial risks of changes in interest rate risk (see (a) below) and other price risk (see (b) below).

a) Interest rate risk

The Group was exposed to interest rate risk arising from short-term borrowing at New Taiwan dollar (NTD) market rates with a markup. Due to lower NTD borrowing rates and small borrowing position, the interest rate sensitivity is lower, and the interest rate risk is little risk to the

The carrying amounts of the Group’s financial assets and financial liabilities with exposure to interest rates at the end of the reporting period

	December 31
	2024	2023
Fair value interest rate risk
Financial assets	$ 969,394	$ 1,248,308
Financial liabilities	347,715	504,662
Cash flow interest rate risk
Financial assets	634,322	283,200
Financial liabilities	2,100,000	2,200,000

b) Other price risk

The Group was exposed to equity price risk through its investments in listed equity securities and mutual funds. The Group manages this exposure by maintaining a portfolio of investments with different risks. The Group's equity price risk was mainly concentrated on equity instruments operating in shares and open-end mutual funds quoted in the Taiwan Stock Exchange. In addition, the Group will evaluate the price by the closing price of the equity investments and the net asset value of the fund every month.

Sensitivity analysis

The sensitivity analyses below were determined based on the exposure to equity price risks at the end of the reporting period.

If equity prices of domestic listed equity securities(excluding private placement), which was hold by the Group calculated by $ 3,134,764 thousand and $ 2,691,567 thousand, had been 1% higher/lower, the pre-tax other comprehensive income for the year ended December 31, 2024 and 2023 would have increased/decreased by $ 31,348 thousand and $ 26,916 thousand, as a result of the changes in fair value of financial assets at FVTOCI.

2) Credit risk

Financial assets are exposed to the potential effects of outstanding contracts between the Group and its counterparty or other parties. Such effects include the credit risk concentration, components, contractual amounts, and other receivables of financial products engaged by the Group.

As at the end of the reporting period, the Group's maximum exposure to credit risk is due to the failure of counterparties to discharge an obligation, which is from the carrying amount of financial assets are recognized from consolidated financial reports.

In addition to the following paragraph, the main customers of its credit are good, and the Group will regularly annually review the customer's credit status, appropriately adjust the credit line, and will require customers to provide the necessary guarantees or trade by cash in special situations. The sales department understands the customer's credit status through external peer visits. The customers mentioned above, had no significant credit risk exposure.

Part of the concrete customers of the Group are individuals and small-scale enterprises, except for a few large customers are concrete construction companies, industry characteristics resulting in some small-scale enterprises. In addition to using credit limit controls to reduce credit risks and the relevant proceedings to protect their claims, the Group has set adequate allowance for bad debts for higher credit risk customers in accordance with company policy. The credit risk arising from its maximum possible amount is disclosed in the Note 11.

The Group has no significant concentration of credit risk.

3) Liquidity risk

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

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

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

To the extent that interest cash flows are at floating rates, the undiscounted interest amount was derived from the effective interest rate at the end of the reporting period.

December 31, 2024

	On Demand or Less than 3 Month	3 Months to 1 Year	1 Year to 5 Year	6 Year to 10 Year
Non-derivative financial liabilities
Non-interest bearing	$ 1,262,005	$ -	$ 8,650	$ -
Lease liabilities	13,481	40,720	117,331	10,886
Variable interest rate liabilities	1,785,515	322,149	-	-
Fixed interest rate liabilities	170,000	-	-	-
	$ 3,231,001	$ 362,869	$ 125,981	$ 10,886

December 31, 2023

	On Demand or Less than 3 Month	3 Months to 1 Year	1 Year to 5 Year	6 Year to 10 Year
Non-derivative financial liabilities
Non-interest bearing	$ 1,367,804	$ -	$ 11,583	$ -
Lease liabilities	13,867	40,942	146,472	28,992
Variable interest rate liabilities	1,986,757	223,213	-	-
Fixed interest rate liabilities	275,000	-	-	-
	$ 3,643,428	$ 264,155	$ 158,055	$ 28,992

The amount included above for variable interest rate instruments for non-derivative financial liabilities was 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) Financing facilities

Loan is an important resource of liquidity for the Company.

December 31
	2024	2023
The short-term unsecured line of credit	$ 5,495,358	$ 4,258,876

TRANSACTIONS WITH RELATED PARTIES

Transactions, balance, income and expenses between the Corporation and subsidiaries (related parties of the Corporation) had been eliminated on consolidation and are not disclosed in this note. Except as disclosed in other notes, details of transactions between the Group and other related parties are disclosed below.

a. Name and relationship of related party

Related Party Name	Relationships of the Group
CHC Resources Corp.	The Group acts as key management
Universal Real Estate Development Co., Ltd.	The Group acts as key management
Creative Sensor Inc.	The Group acts as key management (a)
Sheng Yuan Investment Co., Ltd.	The key management of the Group
Bo-Chih Investment Co., Ltd.	The key management of the Group (b)
Yu-Sheng Investment Co., Ltd.	The key management of the Group
Pan Asia (Engineers&Constructors) Corp.	The Group acts as juristic supervisor
Pao Good Industrial Co., Ltd	Other related parties

a) The amounts of transactions and account balances disclosed in this note are all generated from related parties since May 31, 2024.
b) The chairman of our company since June 2023.

b. Sales of goods

Account Items	Related Parties Category	For the Year Ended December 31
		2024	2023
Sales revenue	The Group acts as key management	$ 129,351	$ 99,420
	The Group acts as juristic supervisor	44,719	139,405
		$ 174,070	$ 238,825

The prices and terms to related parties were not significantly different from transactions with third parties. The credit terms were

c. Purchase of goods

Related Parties Category	For the Year Ended December 31
	2024	2023
The Group acts as key management	$ 327,565	$ 320,171
Other related parties	9,524	9,269
	$ 337,089	$ 329,440

The purchased of goods are mainly blast furnace slag and fly ash. The prices and terms to related parties were not significantly different from transaction with third parties. The credit terms were 30-65 days.

d. Receivables from related parties (Excluding contract assets)

Account Items	Related Parties Category / Name	December 31
		2024	2023
Accounts receivable - related parties	The Group acts as key management	$ 17,613	$ 11,422
	The Group acts as juristic supervisor	4,010	47,430
	Less: Allowance for impairment loss	32	102
		$ 21,591	$ 58,750

The outstanding receivables from related parties are unsecured.

e. Payables to related parties

Account Items	Related Parties Category / Name	December 31
		2024	2023
Accounts payable - related parties	The Group acts as key management	$ 7,119	$ 32,250
	Other related parties	2,076	1,809
		$ 9,195	$ 34,059
Other payables	The Group acts as key management	$ 75	$ -

The outstanding accounts payables from related parties are unsecured and would be paid in cash.

f. Prepayments

Account Items	Related Parties Category / Name	December 31
		2024	2023
Prepayments	The Group acts as key management	$ 764	$ -

g. Lease arrangements - Group is lessor

The Group leased its office building to related parties under operating leases for a term of 1-2 years. The rental prices are determined with reference to the market standards and charged on a monthly basis.

Total lease payment to be collected in the future is summarized as follows:

Related Party Category	December 31
	2024	2023
The Group acts as key management	$ 3,207	$ 3,207
The key management of the Group	92	46
The chairman of our company	46	23
	$ 3,345	$ 3,276

Total lease revenue is summarized as follows:

Related Party Category	For the Year Ended December 31
	2024	2023
The Group acts as key management	$ 5,498	$ 5,498
The key management of the Group	46	57
The chairman of our company	23	12
	$ 5,567	$ 5,567

h. Other related parties transactions

From the date the Group was included as a related party in 2024 until December 31, it paid the Group acts as key management research fees of NT$254 thousand.

i. Compensation of key management personnel

	For the Year Ended December 31
	2024	2023
Short-term employee benefits	$ 50,180	$ 37,057
Post-employment benefits	1,068	895
	$ 51,248	$ 37,952

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

48 -

33. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The following assets were provided as collateral for lease performance bonds and natural gas performance bonds of Port of Taichung, Taiwan

	Carrying Amount	December 31
	2024	2023
Pledged time deposits
Current	$ 67	$ 67
Non-current	8,010	8,010
	$ 8,077	$ 8,077

34. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

In addition to those disclosed in other notes, significant commitments and contingencies of the Group on the date of balance sheets were as follows:

a. Unrecognized commitments are as follows:

	December 31	2024	2023
Acquisition of property, plant and	$ 65,868	$ 70,912

b. The promissory notes are as follows:

	December 31	2024	2023
Promissory notes	$ 94,575	$ 115,806

These notes were provided as engineering performance bonds, which could be refunded when the guarantee is terminated.

c. Unused letters of credit are as follows:

	December 31	2024	2023
Unused letters of credit for purchase of	$ 34,642	$ 26,124

35. OTHER ITEMS

On February 15, 2023, the President announced amendments to the “Climate Change Response Act” and added regulations for the collection of carbon fees. Subsequently, the Ministry of Environment Notice announced on August 29, 2024 was hereby given, to commence a period of public comments for “Regulations Governing the Collection of Carbon Fees”, “Regulations for Administration of Voluntary Reduction Plans” and “Designated Greenhouse Gas Reduction Goal for Entities Subject to Carbon Fees”. On October 21, 2024, the carbon fee collection rates were announced, which will take effect from January 1, 2025. Based on the preliminary emission estimates for the 2024 fiscal year, The Group will become subjects of carbon fee collection. Therefore, they will recognize related liabilities based on actual emissions in 2025 and pay the carbon fees in May 2026.

36. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The following information was aggregated by the foreign currencies other than Group’s individual functional currency and the exchange rates between foreign currencies and respective functional currency were disclosed. The significant financial assets denominated in foreign currencies

December 31, 2024

Financial Assets	Foreign Currencies	Exchange Rate	Carrying Amount
Monetary items
USD	$ 519	32.785	$ 17,023
RMB	926	4.478	4,149
JPY	108,488	0.210	22,772

(In Thousands of New Taiwan Dollars and Foreign Currencies)

December 31, 2023

Financial Assets	Foreign Currencies	Exchange Rate	Carrying Amount
Monetary items
USD	$ 1,007	30.705	$ 30,935
RMB	916	4.33	3,962
EUR	97	33.98	3,295

The foreign currency risk of the Group is mainly exposed to USD. The following information was aggregated by the foreign currencies other than Group's individual functional currency and the exchange rates between foreign currencies and respective functional currency were disclosed. The exchange rate gains and losses of foreign currencies with significance (including realized and non-realized) are summarized as follows:

Functional Currencies	For the Year Ended December 31
	2024		2023
	Exchange Rate	Net Foreign Exchange Gain	Exchange Rate	Net Foreign Exchange Gain
NTD	1(NTD:NTD)	$ 1,497	1 (NTD:NTD)	$ 942

37. SEPARATELY DISCLOSED ITEMS

a. Information about significant transactions and investees:

1) Financing provided to others. (Table 1)
2) Endorsements/guarantees provided. (Table 2)
3) Marketable securities held (excluding investment in subsidiaries and associates). (Table 3)
4) Marketable securities acquired and disposed of at costs or prices of at least NT$ 300 million or 20% of the paid-in capital. (N/A)
5) Acquisition of individual real estate at cost of at least NT$ 300 million or 20% of the paid-in capital. (N/A)
6) Disposal of individual real estate at a price of at least NT$ 300 million or 20% of the paid-in capital. (N/A)
7) Total purchases from or sales to related parties amounting to at least NT$ 100 million or 20% of the paid-in capital. (Table 4)
8) Receivables from related parties amounting to at least NT$ 100 million or 20% of the paid-in capital. (N/A)
9) Trading in derivative instruments. (N/A)
10) Intercompany relationships and significant intercompany transactions. (Table 6)

b. Related information on investees. (Table 5)

c. Information on investments in mainland China

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

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

d. Information on major shareholders: name, number and percentage of shareholding of shareholders with ownership achieving 5% and above. (Table 7)

50 -

38. SEGMENT INFORMATION

a. Operating segments information

The identification of reportable departments is based on the operation and management model of the Group management. Based on product categories, the identification is divided into departments such as building materials business and asset management center-provide information to key operating decision-makers for allocating resources and evaluating segment performance.

The Group’s reportable segments are as

1) Building materials segment - production, sales and reserch segment of cement, concrete and gypsum board.
2) Others - mainly the management segment of reinvested companies and segments that are not part of the building materials segment.

b. Segment revenues and operating results

The following was an analysis of the Group’s revenue and results from continuing operations by reportable segments:

For the year of 2024

	Building Materials Segment	Others	Adjustment and Elimination	Total
Revenue from external customers	$ 7,927,604	$ 26,130	$ -	$ 7,953,734
Inter-segment revenues	17,964	-	(17,964)	-
Total Segment revenues	$ 7,945,568	$ 26,130	($ 17,964)	$ 7,953,734
Segment profit and loss	$ 1,363,451	$ 578,378	($ 91,802)	$ 1,850,027
Interest expenses				(42,931)
Profit before income tax				$ 1,807,096

For the year of 2023

	Building Materials Segment	Others	Adjustment and Elimination	Total
Revenue from external customers	$ 7,766,657	$ 35,705	$ -	$ 7,802,362
Inter-segment revenues	22,532	-	(22,532)	-
Total Segment revenues	$ 7,789,189	$ 35,705	($ 22,532)	$ 7,802,362
Segment profit and loss	$ 1,230,028	$ 2,455,277	($ 1,047,042)	$ 2,638,263
Interest expenses				(55,671)
Profit before income tax				$ 2,582,592

Segment income represented profit before tax earned by each segment without income tax. These amounts provide information to key operating decision-makers for allocating resources and evaluating segment performance.

The chief operating decision maker of the Group makes decisions based on the operating results of each segment, there was no information about the assessment of assets and liabilities classified through business activity performance, thence only listing revenue and results of reportable segments.

c. Geographical information

The Group’s operations are mainly in Taiwan, ROC. The Group has no significant revenues from foreign customers. Please refer to consolidated balance sheets for the information of non-current assets.

d. Revenue from major products and services

Please refer to Note 24 (b).

e. Information about major customers

Revenue from selling cement

For the Year Ended December 31

2024	2023

Single customer who contributed 10% or more to the Group’s revenue

$ 664,122 $ 703,039

TABLE 1

UNIVERSAL CEMENT CORPORATION AND SUBSIDIARIES

FINANCING PROVIDED TO OTHERS

FOR THE YEAR ENDED DECEMBER 31, 2024

(In Thousands of New Taiwan Dollars)

No. (Note 1)	Lender	Borrower	Financial Statement Account	Related Parties	Highest Balance for the period	Ending Balance	Actual Borrowing Amount	Interest Rate (%)	Nature for Financing	Business Transaction Amounts	Reasons for Short-term Financing	Allowance for Impairment Loss	Collateral		Financing Limits for Each Borrower (Note 2)	Aggregate Financing Limits (Note 3)
													Item	Value
0	The Company	Unco Inc.	Other receivables	Yes	$100,000	$100,000	$ -	2.035	For short-term financing	$ -	Operating capital	$ -	None	$ -	$9,462,702	$9,462,702
0	The Company	UCC Investment Co., Ltd.	Other receivables	Yes	800,000	800,000	-	2.035	For short-term financing	-	Operating capital	-	None	-	9,462,702	9,462,702
0	The Company	Tainan Ready-mixed Concrete Industry Co., Ltd.	Other receivables	Yes	300,000	-	-	2.035	For short-term financing	-	Operating capital	-	None	-	9,462,702	9,462,702
0	The Company	Universal Ready-mixed Concrete Industry Co., Ltd.	Other receivables	Yes	300,000	300,000	-	2.035	For short-term financing	-	Operating capital	-	Land and Plant	300,000	9,462,702	9,462,702
1	UCC Investment Co., Ltd.	Tainan Ready-mixed Concrete Industry Co., Ltd.	Other receivables	Yes	250,000	-	-	2.268	For short-term financing	-	Operating capital	-	None	-	457,637	457,637
2	Tainan Ready-mixed Concrete Industry Co., Ltd.	The Company	Other receivables	Yes	400,000	280,000	280,000	1.47	For short-term financing	-	Operating capital	-	None	-	389,718	389,718

Note 1: a: "0" is the Company.
b: Subsidiaries are numbered from "1".

Note 2: The upper limit for each borrower is 40% of the Company's net asset value as stated in the latest financial statements; The upper limit for a subsidiary to a single enterprise is 40% of the net value of the subsidiary's most recent financial statements that have been audited (reviewed) by CPAs.

Note 3: The aggregate limit for each borrower is 40% of the Company's net asset value as stated in the latest financial statements; The aggregate limit for a subsidiary to a single enterprise is 40% of the net value of the subsidiary's most recent financial statements that have been audited (reviewed) by CPAs.

UNIVERSAL CEMENT CORPORATION AND SUBSIDIARIES

TABLE 2

ENDORSEMENTS/GUARANTEES PROVIDED

FOR THE YEAR ENDED DECEMBER 31, 2024

(In Thousands of New Taiwan Dollars)

No. (Note 1)	Endorser / Guarantor	Endorsse / Guarantee		Limits on Endorsement/ Guarantor Given on Behalf of Each Party (Note 3)	Maximum Amount Endorsed / Guaranteed During the Period	Outstanding Endorsement / Guarantee at the End of the Period (Note 6)	Actual Borrowing Amount	Amount Endorsed / Guaranteed by Collaterals	Ratio of Accumulated Endorsement/Guarantee to Net Equity in Latest Financial Statements (%)	Aggregate Endorsement/ Guarantor Limit (Note 4, Note 5, Note 7)	Endorsement/ Guarantor Given by Parent on Behalf of Subsidiaries	Endorsement/ Guarantor Given by Subsidiaries on Behalf of Parent	Endorsement/ Guarantor Given on Behalf of Companies in Mainland China
		Name	Relationship (Note 2)
0	The Company	Universal Ready-mixed Concrete Industry Co., Ltd.	(1)	$ 132,329	$ 120,000	$ 120,000	$ -	$ -	1	$ 23,656,756	Y	N	N
		UCC Investment Co., Ltd.	(1)	828,750	350,000	350,000	100,000	-	1	23,656,756	Y	N	N
		Unzo Inc.	(1)	110,000	50,000	50,000	-	-	-	23,656,756	Y	N	N
1	Kaohsiung Pier Transportation Co., Ltd.	Universal Ready-mixed Concrete Industry Co., Ltd.	(3)	477,039	341,607	341,607	-	-	358	954,077	N	N	N
		The Company	(2)	477,039	319,928	319,928	-	-	335	954,077	N	Y	N
2	UCC Investment Co., Ltd.	Universal Ready-mixed Concrete Industry Co., Ltd.	(3)	5,720,461	132,564	132,564	-	-	12	11,440,922	N	N	N
		The Company	(2)	5,720,461	730,762	730,762	-	-	64	11,440,922	N	Y	N
3	Universal Ready-mixed Concrete Industry Co., Ltd.	The Company	(2)	629,059	157,561	157,561	-	-	25	629,059	N	Y	N

Note 1: a: "0" is the Company.
b: Subsidiaries are numbered from "1".

Note 2: (1) The endorser / guarantor parent company owns directly and indirectly more than 50% voting shares of the endorsed / guaranteed subsidiary.
(2) The endorser / guarantor parent company owns directly and indirectly more than 90% voting shares of the endorsed / guaranteed company.
(3) The endorsed / guaranteed company owns directly and indirectly more than 50% voting shares of the endorser / guarantor parent company.

Note 3: The upper limit for the Company is equivalent to the capital of the endorser; the upper limit for subsidiaries is equivalent to the net asset value of the subsidiaries as stated in its latest financial statements except that it is five times of the net asset value of Kaohsiung Pier Transportation Co., Ltd. and UCC Investment Co., Ltd.

Note 4: The upper limit for the Company is equivalent to the net asset value of the Company.

Note 5: The upper limit for the subsidiary is equivalent to the net asset value of the subsidiary as stated in its latest financial statements, unless the Company or other subsidiaries give more guarantee.

Note 6: The limits were approved by the board of directors.

Note 7: The upper limit for the subsidiary is equivalent to ten times of the net asset value of the subsidiary as stated in its latest financial statements.

UNIVERSAL CEMENT CORPORATION AND SUBSIDIARIES

MARKETABLE SECURITIES HELD

DECEMBER 31, 2024

(In Thousands of New Taiwan Dollars)

TABLE 3

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account	DECEMBER 31, 2024
				Shares/ Units	Carrying Value	Percentage of Ownership (%)	Fair Value Or Net Equity
The Company	Listed shares
	Prince Housing & Development Corp.	The juristic director of the Company acts as juristic director	Financial assets at FVTOCI - current	40,621,948	$ 416,375	2.50	$ 416,375
	CTBC Financial Holding Co., Ltd.	-	Financial assets at FVTOCI - current	28,441,983	1,112,082	0.14	1,112,082
	Far EastTone Telecommunications Co., Ltd.	-	Financial assets at FVTOCI - current	306,219	27,376	0.01	27,376
	CHC Resources Corp.	The Company acts as juristic director	Financial assets at FVTOCI - current	17,020,254	1,142,059	6.85	1,142,059
	Creative Sensor Inc.	The Company acts as juristic director	Financial assets at FVTPL - current	142,200	8,887	0.11	8,887
	Privately offered shares
	Creative Sensor Inc.	The Company acts as juristic director	Financial assets at FVTOCI - non - current	11,700,000	592,020	8.72	592,020
	Unlisted shares
	Grand Bills Finance Corp.	The Company acts as juristic director	Financial assets at FVTOCI - non - current	43,999,488	579,913	8.14	579,913
	Universal Real Estate Development Co., Ltd.	The Company acts as juristic director	Financial assets at FVTOCI - non - current	24,864,000	651,934	16.44	651,934
	Universal Venture Capital Investment Corp.	-	Financial assets at FVTOCI - non - current	1,400,000	15,305	1.16	15,305
	Chinatran Investment Co., Ltd.	-	Financial assets at FVTOCI - non - current	1,981,995	70,372	1.05	70,372
	Kaohsiung Rapid Transit Corp.	-	Financial assets at FVTOCI - non - current	1,286,063	12,640	0.46	12,640
	Chio-Ho Engineering & Development Co., Ltd.	-	Financial assets at FVTOCI - non - current	171,131	-	0.16	-
	Unison Environmental & Technical Services Co., Ltd.	-	Financial assets at FVTOCI - non - current	600,000	-	30.00	-
UCC Investment Co., Ltd.	Mutual funds
	Cathay No. 2 Real Estate Investment Trust	-	Financial assets at FVTPL - current	24,000	372	-	372
	Listed shares
	Prince Housing & Development Corp.	The juristic director of the Company acts as juristic director	Financial assets at FVTOCI - current	42,375,900	434,353	2.61	434,353
	Tainan Spinning Co., Ltd.	The juristic director of the Company acts as juristic director	Financial assets at FVTOCI - current	55	1	-	1
	Privately offered shares
	Creative Sensor Inc.	The Company acts as juristic director	Financial assets at FVTOCI - non - current	8,100,000	409,860	6.04	409,860
	Unlisted shares
	Pan Asia (Engineers&Constructors) Corp.	Subsidiary of the Company acts as juristic supervisor	Financial assets at FVTOCI - non-current	3,102,803	167,831	2.71	167,831
	Darzhen Venture Corp.	Representative of the juristic director of the Company acts as director	Financial assets at FVTOCI - non-current	673,200	11,372	8.06	11,372
	Durchan Venture Corp.	Representative of the juristic director of the Company acts as supervisor	Financial assets at FVTOCI - non-current	4,000,000	40,107	3.64	40,107
	Limited partnership
	Taiwania Capital Buffalo Fund V, LP.	-	Financial assets at FVTPL - non-current	-	40,948	3.23	40,948
Tainan Ready-mixed Concrete Industry Co., Ltd.	Listed shares
	CTBC Financial Holding Co., Ltd.	-	Financial assets at FVTOCI - current	60,000	2,346	-	2,346
	CTBC Financial Holding Co., Ltd. Preferred Shares C	-	Financial assets at FVTOCI - current	2,987	172	-	172

UNIVERSAL CEMENT CORPORATION AND SUBSIDIARIES

TABLE 4

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

FOR THE YEAR ENDED DECEMBER 31, 2024

(In Thousands of New Taiwan Dollars)

Purchaser/Seller	Counterparty	Relationship	Transaction Details				Differences in transaction terms compared to third party transactions		Notes/Accounts Receivable (Payable)		Note
			Purchases/ Sales	Amount	Percentage of Total Purchases (Sales) (%)	Payment Terms	Unit Price	Credit Period	Balance	Percentage of Total Notes/Accounts Receivable (Payable)
The Company	Kaohsiung Pier Transportation Co., Ltd.	Subsidiary-100%	Freight expense	$ 290,610	8	45 - 60 days after shipment	Note 1	Equivalent	($ 12,225)	( 2)
	CHC Resources Corp.	The Group acts as key management	Purchase	268,073	8	30 - 65 days after shipment	Equivalent	Equivalent	-	-	Note 2
	CHC Resources Corp.	The Group acts as key management	Sale	( 129,351)	( 2)	30 - 60 days after sale	Equivalent	Equivalent	17,613	1
	Universal Ready-mixed Concrete Industry Co., Ltd.	Same ultimate parent company	Sale	( 164,788)	( 2)	90-120 days after sale	Equivalent	Equivalent	42,998	3

Note1: There is no comparison on the purchase price between related parties and the third parties because there is no similar product.
Note2: The prepayment balance is $ 764 thousand as of December 31, 2024.

UNIVERSAL CEMENT CORPORATION AND SUBSIDIARIES

TABLE 5

INFORMATION ON INVESTEES

FOR THE YEAR ENDED DECEMBER 31, 2024

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

Investor Company	Investor Company	Location	Main Businesses and Products	Original Investment Amount		As of December 31, 2024			Net Income (Loss) of the Investor	Share of Profits/Losses of Investor
				December 31, 2024	December 31, 2023	Shares	Percentage of Ownership	Carrying Amount
The Company	Huan-Chung International Co., Ltd.	Taichung city	Import, export, and sale of cement, cement material, fuel, and production	$ 69,993	$ 69,993	6,999,333	69.99	$ 127,405	$ 31,965	$ 22,375
	Chiayi Ready-mixed Concrete Industry Co., Ltd.	Chiayi County	Manufacturing and marketing of ready-mixed concrete	65,157	22,643	6,583,874	86.63	86,160	1,921	1,665
	Kaohsiung Pier Transportation Co., Ltd.	Kaohsiung city	Tracking operation	74,580	74,580	7,560,000	100.00	95,408	( 1,126)	( 1,126)
	UCC Investment Co., Ltd.	Taipei city	Investment activities	650,000	650,000	82,875,000	100.00	1,143,400	31,515	31,515
	Universal Ready-mixed Concrete Industry Co., Ltd.	Taichung city	Manufacturing and marketing of ready-mixed concrete and gravel	33,887	33,887	7,698,963	58.18	371,137	113,663	67,694
	Unao Inc.	Taipei city	Marketing of electronic products	341,671	291,671	11,000,000	100.00	51,108	( 17,832)	( 17,832)
	Li-Yong Development Co., Ltd.	Taipei city	Investment activities, trading for real estate and leasing business	20,000	20,000	2,000,000	100.00	19,279	( 2)	( 2)
	Lio-Ho Machine Works Ltd.	Taoyuan city	Manufacturing and marketing of metal parts and automotive components	174,997	174,997	89,581,468	29.86	11,347,505	1,590,817	475,018
	Tainan Ready-mixed Concrete Industry Co., Ltd.	Tainan city	Additional processing and marketing of ready-mixed concrete and cement	238,180	238,180	2,023,624	67.45	1,010,666	( 23,698)	( 16,336)
UCC Investment Co., Ltd.	Universal Ready-mixed Concrete Industry Co., Ltd.	Taichung city	Manufacturing and marketing of ready-mixed concrete and gravel	8,128	858	260,892	1.97	8,128
	Chiayi Ready-mixed Concrete Industry Co., Ltd.	Chiayi County	Manufacturing and marketing of ready-mixed concrete	12	5	1,056	0.01	12
	Huan-Chung International Co., Ltd.	Taichung city	Import, export, and sale of cement, cement material, fuel, and production	13	13	667	0.01	13
	Tainan Ready-mixed Concrete Industry Co., Ltd.	Tainan city	Additional processing and marketing of ready-mixed concrete and cement	178	178	10,000	0.33	178
	Lio-Ho Machine Works Ltd.	Taoyuan city	Manufacturing and marketing of metal parts and automotive components	93	93	1,680	-	93
	Bao Horng Cement Corp.	Yilan County	Manufacturing and sales of cement and furnace slag related products	41,583	-	2,557,648	26.92	59,663

UNIVERSAL CEMENT CORPORATION AND SUBSIDIARIES

TABLE 6

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS

FOR THE YEAR ENDED DECEMBER 31, 2024

(In Thousands of New Taiwan Dollars)

No.	Company name	Counterparty	Relationship (Note 1)	Transaction Details
				Financial Statement Accounts	Amount	Transaction terms	Percentage of Consolidated Total Operating Revenues or Total Assets (%)
0	The Company	Kaohsiung Pier Transportation Co., Ltd.	(1)	Freight expense	$ 290,610	Payment terms were 45 to 60 days after shipment, based on the standard pricing.	3
		Kaohsiung Pier Transportation Co., Ltd.	(1)	Accounts payable	12,225	Payment terms were 45 to 60 days after shipment, based on the standard pricing.	-
		Kaohsiung Pier Transportation Co., Ltd.	(1)	Other payables	18,456	Payment terms were 45 to 60 days after shipment, based on the standard pricing.	-
		Uneo Inc.	(1)	Sales revenue	17,964	The prices have no comparison with those from third parties, net 60 days after sale.	-
		Uneo Inc.	(1)	Accounts receivable	2,213	The prices have no comparison with those from third parties, net 60 days after sale.	-
		Tainan Ready-mixed Concrete Industry Co., Ltd.	(1)	Other payables	280,000	Financing provided	1
		Tainan Ready-mixed Concrete Industry Co., Ltd.	(1)	Interest expense	3,445	Charged at an annual interest rate of 1.40%-1.47%	-
		Huan-Chung International Co., Ltd.	(1)	cost of goods sold	6,475	Payment terms were 90 to 120 days after shipment, based on the standard pricing.	-
1	Huan-Chung International Co., Ltd.	Universal Ready-mixed Concrete Industry Co., Ltd.	(3)	Sales revenue	164,788	Payment terms were 90 to 120 days after sale, based on the standard pricing.	2
		Universal Ready-mixed Concrete Industry Co., Ltd.	(3)	Accounts receivable	42,998	Payment terms were 90 to 120 days after sale, based on the standard pricing.	-

Note 1: The transaction relationships with the counterparties are as follows:
No. 1: Represents transactions from parent Company to subsidiary.
No. 2: Represents transactions from the subsidiary to the parent Company.
No. 3: Represents transactions among subsidiaries.

Note 2: All the transactions had been eliminated when preparing consolidated financial statements.

UNIVERSAL CEMENT CORPORATION AND SUBSIDIARIES

TABLE 7

INFORMATION ON MAJOR SHAREHOLDERS

DECEMBER 31, 2024

Name of the major shareholder	Shares
	Number of Shares	Percentage of Ownership (%)
Sheng-Yuan Investment Co., Ltd.	70,895,594	10.32%
Yu-Sheng Investment Co., Ltd	70,653,357	10.28%
HOU, BO-YI	54,494,358	7.93%

Note 1:

The information on major shareholders in the table is information related to shareholders with aggregate ownership in the Company achieving 5% and above by holding ordinary shares and special shares that completed the non-physical registration and delivery (including treasury shares), calculated by the TDCC on the last business day at the end of the quarter. The share capital stated in the consolidated financial report of the Company may differ from the number of shares that completed the non-physical registration and delivery due to the differences in the basis of preparation and calculation.

Note 2:

Regarding the information above, where shareholders entrust their shares with a trust, the information shall be disclosed in a separate personal account of the client in the nature of a trust account opened by the trustee. When shareholders with shareholding over 10% carrying out the insider's equity report according to laws and regulations related to securities trading, the shareholding shall include its personal shareholding, plus shares entrusted with trust and possessing the right of utilization and decision-making. For information on the insider's equity report, please refer to MOP.

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UCC — Audit Report / Information 2024

51738_rns_2024-12-30_ab081b50-9752-40a3-bf55-b35447bfb0c6.pdf

DECLARATION OF CONSOLIDATION OF FINANCIAL STATEMENTS OF AFFILIATES

INDEPENDENT AUDITORS' REPORT

Opinion

Basis for Opinion

Key Audit Matters

Other Matter

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

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

Notice to Readers

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1. Financial instruments

1) Financial assets

a) Measurement category

i. Financial assets at FVTPL

ii. Financial assets at amortized cost

6. CASH AND CASH EQUIVALENTS

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

9. FINANCIAL ASSETS AT AMORTIZED COST

10. CREDIT RISK MANAGEMENT FOR INVESTMENTS IN DEBT INSTRUMENTS

11. NOTES RECEIVABLE AND ACCOUNTS RECEIVABLE (INCLUDING RELATED PARTIES)

For the year of 2024

For the year of 2023

12. INVENTORIES

13. SUBSIDIARIES

14. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

16. LEASE ARRANGEMENTS

a. Right-of-use assets

b. Lease liabilities

c. Material lease-in activities and terms

d. Other lease information

17. INVESTMENT PROPERTIES

18. OTHER INTANGIBLE ASSETS

19. BORROWINGS

20. NOTES PAYABLE AND ACCOUNTS PAYABLE (INCLUDING RELATED PARTIES)

21. OTHER PAYABLES AND OTHER LIABILITIES

23. EQUITY

a. Share capital

b. Capital surplus

c. Retained earnings and dividend policy

Huan-Chung

27. EARNINGS PER SHARE

28. EQUITY TRANSACTIONS WITH NON-CONTROLLING INTERESTS

29. CASH FLOWS INFORMATION

30. CAPITAL MANAGEMENT

31. FINANCIAL INSTRUMENTS

December 31, 2024

December 31, 2023

For the year of 2024

Category of financial instrument

c. Categories of financial instruments

d. Financial Risk Management Objectives and Policies

33. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

34. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

35. OTHER ITEMS

36. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

37. SEPARATELY DISCLOSED ITEMS

38. SEGMENT INFORMATION

UNIVERSAL CEMENT CORPORATION AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS

INFORMATION ON MAJOR SHAREHOLDERS

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UCC Audit Report / Information 2024