1445

UNIVERSAL TEXTILE CO., LTD.

PARENT COMPANY ONLY FINANCIAL STATEMENTS
WITH INDEPENDENT AUDITORS' REPORT

For the Years Ended 31 December 2025 and 2024

Address: 7 F., No. 62-5, Xining N. Rd., Datong Dist., Taipei City

Telephone: (02)2552-3977

The reader is advised that parent company only financial statements have been prepared originally in Chinese. In the event of a conflict between these financial statements and the original Chinese version or difference in interpretation between the two versions, the Chinese language financial statements shall prevail.

Independent Auditors' Report Translated from Chinese

To UNIVERSAL TEXTILE CO., LTD.

Opinion

We have audited the accompanying parent company only balance sheets of UNIVERSAL TEXTILE CO., LTD. (the "Company") as of 31 December 2025 and 2024, and the related parent company only statements of comprehensive income, changes in stockholders' equity and cash flows for the years ended 31 December 2025 and 2024, and notes to the parent company only financial statements, including the summary of significant accounting policies.

In our opinion, based on our audits and the report(s) of the other auditors (please refer to the Other Matter – Making Reference to the Audit(s) of Other Auditors section of our report), the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of 31 December 2025 and 2024, and its parent company only financial performance and cash flows for the years ended 31 December 2025 and 2024, in conformity with the requirements of the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards, International Accounting Standards, interpretations developed by the International Financial Reporting Interpretations Committee or the former Standing Interpretations Committee as endorsed by Financial Supervisory Commission of the Republic of China.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and the Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Parent Company Only Financial Statements section of our report. We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China (the "Norm"), and we have fulfilled our other ethical responsibilities in accordance with the Norm. Based on our audits, 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 2025 Parent company only financial statements. These matters were addressed in the context of our audit of the Parent company only financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Revenue Recognition

The Company’s operating revenues amounted to NT$770,092 thousand for the year ended 31 December 2025, and the Company mainly sales textured yarns and synthetic fabrics. Due to the different sales conditions with different customers, it is necessary to determine and decide the performance obligations and the timing of their satisfaction based on customer orders or contract documents. Therefore, the auditor has listed it as a key audit matter.

The audit procedures of the accountants included (but not limited to), understanding and evaluating the appropriateness of the accounting policies for revenue recognition; understanding and testing the effectiveness of relevant internal control design and implementation; selecting samples for details, and performing transaction detail tests, Review the major clauses in the contract and examining relevant transaction certificates to evaluate and judge the correctness of the performance obligation and the timing of its satisfaction and verify the authenticity of the transaction; for before and after the balance sheet date for transactions over a period of time and select samples to perform the cut-off point test.

Please refer to the parent company only financial statements Notes 4 and 6 indicate the appropriateness of the disclosure of operating income.

Other Matter – Making Reference to the Audit(s) of Other Auditors

We did not review the financial statements of certain investee companies accounted for under the equity method, which were reviewed by other independent auditors. Accordingly, our conclusion expressed herein with respect to the amounts included in the consolidated financial statements relating to such investee companies is based solely on the reports of the other auditors. As of December 31, 2025, investments in these equity-method investees amounted to NT$503,867 thousand and NT$544,322 thousand, representing 11% and 20% of consolidated total assets. The related shares of losses from these equity-method associates and joint ventures for the twelve-month periods ended December 31, 2025, amounted to NT$(31,437) thousand and NT$(2,078) thousand, representing 38% and 1% of the consolidated net loss before tax for the respective periods, and the related shares of other comprehensive income from the associates and joint ventures under the equity method amounted to NT$(1,591) thousand and NT$(12,189) thousand, representing 2% and 5%.

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

Management is responsible for the preparation and fair presentation of the parent company only financial statements in accordance with the requirements of the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards, International Accounting Standards, Interpretations developed by the International Financial Reporting Interpretations Committee or the former Standing Interpretations Committee as endorsed by Financial Supervisory Commission of the Republic of China and for such internal control as management determines is necessary to enable the preparation of parent company only financial statements that are free from material misstatement, whether due to fraud or error.

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

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

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

Our objectives are to obtain reasonable assurance about whether the parent company only financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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 Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these parent company only financial statements.

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

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

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control of the Company.
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 ability to continue as a going concern of the Company. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the parent company only financial statements, including the accompanying notes, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the 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 2025 parent company only financial statements 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.

Ernst & Young, Taiwan

Huang, Ching Ya

Liu, Jung Chin

13 March 2026

Notice to Readers

The accompanying financial statements are intended only to present the financial position, results of operations 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 financial statements are those generally applied in the Republic of China.

Accordingly, the accompanying parent company only financial statements and report of independent accountants are not intended for use by those who are not informed about the accounting principles or the Standards on Auditing of the Republic of China, and their applications in practice. As the parent company only financial statements are the responsibility of the management, Ernst & Young cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

English Translation of Parent Company Only Financial Statements Originally Issued in Chinese
UNIVERSAL TEXTILE CO., LTD
PARENT COMPANY ONLY BALANCE SHEETS
As of 31 December 2025 and 2024
(Expressed in Thousands of New Taiwan Dollars)

Assets	As of 31 December
	2025	2024
Current assets
Cash and cash equivalents	$256,999	$304,627
Financial assets at fair value through profit or loss, current	4,6(2) and 12	116,702
Note receivable, net	4,5,6(4) and 12	1,890
Notes receivable-related parties, net	4,5,6(4), 7 and 12	5,520
Accounts receivable, net	4,5,6(4) and 12	63,546
Accounts receivable-related parties, net	4,5,6(4), 7 and 12	1,483
lease receivables, net	4,6(17), 8 and 12	10,615
Other receivables	12	2,819
Other receivables-related parties	7	43
Current income tax assets		1,512
Inventories	4,5 and 6(5)	246,378
Other current assets		7,304
Total current assets		714,811
Non-current assets
Financial assets at fair value through other comprehensive income, non-current	4,6(3) and 12	453,317
Investments accounted for using equity method	4 and 6(6)	577,943
Property, plant and equipment, net	4,6(7) and 8	591,542
Right-of-use assets	4 and 6(17)	2,726
Investment property	4,6(8) and 8	1,265,647
Intangible assets	4 and 6(9)	10,644
Deferred tax assets	4 and 6(21)	-
lease receivables - non-current, net	4,6(17), 8 and 12	852,783
Other non-current assets		966
Total non-current assets		3,755,568

Total assets
(continued)
$4,470,379
$2,769,827

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

UNIVERSAL TEXTILE CO., LTD

PARENT COMPANY ONLY BALANCE SHEETS

As of 31 December 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

Liability and Equity	As of 31 December
		2025	2024
Current liabilities
Short-term loans	4, 6(11) and 12	$190,000	$120,000
Contract liabilities, current	4 and 6(15)	31,863	38,824
Notes payable	12	6,568	6,149
Accounts payable	12	34,821	43,470
Accounts payable-related parties, net	7	12,977	-
Other payables	6(10) and 12	85,716	75,257
Lease liabilities, current	4, 6(17) and 12	1,808	1,533
Other current liabilities		1,203	2,507
Total current liabilities		364,956	287,740
Non-current liabilities
Contract liabilities, non-current	4 and 6(15)	33,166	-
Long-term loans	4, 6(12) and 12	1,890,000	-
Deferred tax liabilities	4 and 6(21)	55,299	63,987
Lease liabilities, non-current	4, 6(17) and 12	958	2,049
Deferred revenue		-	4,505
Net defined benefit obligation, non-current	4 and 6(13)	998	10,407
Guarantee deposits received	12	1,390	620
Non-current liabilities		1,981,811	81,568
Total liabilities		2,346,767	369,308
Equity	4 and 6(14)
Capital
Common stock		1,306,660	1,306,660
Additional paid-in capital		1,623	1,538
Retained earnings
Legal reserve		116,665	115,343
Special reserve		69,236	69,236
Unappropriated retained earnings		534,384	711,571
Subtotal		720,285	896,150
Other Components of equity
Unrealized Gains on Equity Instruments Measured at Fair Value Through Other Comprehensive Income		95,044	196,171
Total equity		2,123,612	2,400,519
Total liabilities and equity		$4,470,379	$2,769,827

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

UNIVERSAL TEXTILE CO., LTD

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

For the Years Ended 31 December 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

	Note	For the years ended 31 December
		2025	2024
Operating revenues	4, 6(15) and 7	$770,092	$989,122
Operating costs	6(5)	(683,091)	(1,002,688)
Gross profit		87,001	(13,566)
Operating expenses	6(18)
Sales and marketing expenses		(94,092)	(99,782)
General and administrative expenses		(70,440)	(53,261)
Research and development expenses		(13,484)	(23,402)
Expected credit loss	6(16)	(2,942)	(5,204)
Total operating expenses		(180,958)	(181,649)
Operating loss		(93,957)	(195,215)
Non-operating income and expenses	4 and 6(19)
Interest income		1,500	13,164
Other income		25,012	15,704
Other gains and losses		18,181	17,116
Finance costs		(3,651)	(1,131)
Share of (loss) or profit of subsidiaries, associates and joint ventures accounted for using equity method		(30,681)	(2,232)
Total non-operating income and expenses		10,361	42,621
Loss before income tax		(83,596)	(152,594)
Income tax expense	4 and 6(21)	(29,626)	(46,007)
Net loss		(113,222)	(198,601)
Other comprehensive income (loss)	6(20)
Items that will not be reclassified subsequently to profit or loss
Remeasurements of defined benefit plans		3,362	5,977
Unrealized gains (losses) from equity instruments measured at fair value through other comprehensive income		(99,742)	227,156
Income tax related to items that will not be reclassified subsequently		(672)	(1,196)
Components of other comprehensive income that will be reclassified to profit or loss
Share of profit (loss) of associates and joint ventures accounted for using equity method		(1,385)	-
Total other comprehensive income, net of tax		(98,437)	231,937
Total comprehensive income		$(211,659)	$33,336
Earnings per share (NTD)	6(22)
Earnings per share-basic		$(0.87)	$(1.52)
Earnings per share-diluted		$(0.87)	$(1.52)

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

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

UNIVERSAL TEXTILE CO., LTD

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY

For the Years Ended 31 December 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

	Notes	Capital	Additional paid-in capital	Retained earnings	Other Components of Equity
Legal reserve	Special reserve	Unappropriated retained earnings	Unrealized Gains (Losses) on Equity Instruments Measured at Fair Value Through Other Comprehensive Income	Total equity
Balance as of 1 January 2024	4 and 6(14)	$1,306,660	$1,450	$1,520	$69,236
Appropriation of earnings
Legal reserve		-	-	113,823	-
Cash dividend		-	-	-	-
Other changes in additional paid-in capital:
Capital surplus transferred from unclaimed dividends		-	88	-	-
Net loss in 2024		-	-	-	-
Other comprehensive income in 2024		-	-	-	-
Total comprehensive income		-	-	-	-
Disposal of equity instrument measured at fair value through other comprehensive income		-	-	-	-
Balance as of 31 December 2024	4 and 6(14)	$1,306,660	$1,538	$115,343	$69,236
Balance as of 1 January 2025	4 and 6(14)	$1,306,660	$1,538	$115,343	$69,236
Appropriation of earnings
Legal reserve		-	-	1,322	-
Cash dividend		-	-	-	-
Other changes in additional paid-in capital:
Capital surplus transferred from unclaimed dividends		-	85	-	-
Net loss in 2025		-	-	-	-
Other comprehensive income in 2025		-	-	-	-
Total comprehensive income		-	-	-	-
Balance as of 31 December 2025	4 and 6(14)	$1,306,660	$1,623	$116,665	$69,236

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

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

UNIVERSAL TEXTILE CO., LTD

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

For the Years Ended 31 December 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

	For the years ended 31 December
	2025	2024
Cash flows from operating activities:
Net (loss) profit before tax	$(83,596)	$(152,594)
Income and expense adjustments:
Depreciation	38,713	41,030
Amortization	3,425	1,084
Expected credit loss	2,942	5,204
Loss on financial assets or liabilities at fair value through profit or loss, net	284	2,857
Interest expense	3,651	1,131
Interest income	(1,500)	(13,164)
Other income	(3,008)	(3,814)
Dividend income	(12,373)	(4,616)
Share of loss (profit) of associates and joint ventures accounted for using equity method	30,681	2,232
Gains on disposal of property, plant and equipment	2,516	(2,215)
Inventory valuation (gain) losses	(73,992)	82,964
Changes in operating assets and liabilities:
Notes receivable (including related parties)	3,586	4,607
Accounts receivable (including related parties)	46,761	49,127
Other receivables (including related parties)	(79)	587
Inventories	113,950	(24,391)
Other current assets	23,343	(19,829)
Contract liabilities	30,087	(9,477)
Notes payable	419	(14,591)
Accounts payable (including related parties)	4,328	(22,430)
Other payables	10,914	(88,171)
Other current liabilities	63	5
Net defined benefit obligation, non-current	(12,771)	(7,176)
Cash generated from (used in) operations	128,344	(171,640)
Interest received	19,135	13,620
Interest paid	(3,674)	(1,068)
Income taxes received (paid)	1,065	(1,365)
Net cash generated from (used in) operating activities	144,870	(160,453)
Cash flows from investing activities:
Acquisition of financial assets measured at fair value through profit or loss		(143,400)
Disposal of financial assets at fair value through profit or loss	21,520	-
Acquisition of financial assets at fair value through other comprehensive income	-	(332,558)
Disposal of financial assets at fair value through other comprehensive income	10	-
Acquisition of investments accounted for using the equity method	-	(240,632)
Acquisition of financial assets at amortised cost	(10,000)	-
Proceeds from disposal of financial assets at amortised cost	10,000	211,410
Acquisition of property, plant and equipment	(9,496)	(33,104)
Proceeds from disposal of property, plant and equipment	5,963	2,239
Acquisition of intangible assets	-	(12,722)
Increase in other non-current assets	-	(424)
Acquisition of Investment Property	(1,242,961)	-
Cash dividends received	19,801	12,617
Increase in lease receivables, non-current	(881,017)	-
Net cash flows used in investing activities	(2,086,180)	(536,574)
Cash flows from financing activities:
Increase in short-term loans	360,000	120,000
Decrease in short-term loans	(290,000)	-
Cash payments for the principal portion of the lease liability	(1,840)	(1,308)
Cash dividends paid	(65,333)	(326,665)
Increase in guarantee deposits received	770	-
Increase in long-term loans	1,890,000	-
Capital surplus transferred from unclaimed dividends	85	88
Net cash provided by (used in) financing activities	1,893,682	(207,885)
Decrease in cash and cash equivalents	(47,628)	(904,912)
Cash and cash equivalents, at beginning of period	304,627	1,209,539
Cash and cash equivalents, at end of period	$256,999	$304,627

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

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

UNIVERSAL TEXTILE CO., LTD.

Notes to Parent Company Only Financial Statements

For the Years Ended 31 December 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

History and organization

Universal Textile Co., Ltd. (the "Company") was incorporated in Republic of China (R.O.C) on 12 September 1969. The main activities of the Company include the production and sales of various processed yarns and synthetic fiber fabrics. The shares of the Company were listed on the Taiwan Stock Exchange in 5 February 1991.

Date and procedures of authorization of financial statements for issue

The parent Company only financial statements of the Company for the years ended 31 December 2025 and 2024 were authorized for issue in accordance with a resolution of the Board of Directors' meeting on 13 March 2026.

Newly issued or revised standards and interpretations

(1) Changes in accounting policies resulting from applying for the first-time certain standards and amendments

The Company applied for the first time International Financial Reporting Standards, International Accounting Standards, and Interpretations issued, revised or amended which are recognized by Financial Supervisory Commission ("FSC") and become effective for annual periods beginning on or after 1 January 2025. The adoption of these new standards and amendments had no material impact on the Company.

(2) Standards or interpretations issued, revised or amended, by International Accounting Standards Board ("IASB") which are endorsed by FSC, but not yet adopted by the Company as at the end of the reporting period are listed below.

Items	New, Revised or Amended Standards and Interpretations	Effective Date issued by IASB
A	IFRS 17 “Insurance Contracts”	1 January 2023
B	Amendments to the Classification and Measurement of Financial Instruments – Amendments to IFRS 9 and IFRS 7	1 January 2026
C	Annual Improvements to IFRS Accounting Standards – Volume 11	1 January 2026
D	Contracts Referencing Nature-dependent Electricity (Amendments to IFRS 9 and IFRS 7)	1 January 2026

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

A. IFRS 17 “Insurance Contracts”

IFRS 17 provides a comprehensive model for insurance contracts, covering all relevant accounting aspects (including recognition, measurement, presentation and disclosure requirements). The core of IFRS 17 is the General (building block) Model, under this model, on initial recognition, an entity shall measure a group of insurance contracts at the total of the fulfilment cash flows and the contractual service margin. The carrying amount of a group of insurance contracts at the end of each reporting period shall be the sum of the liability for remaining coverage and the liability for incurred claims.

Other than the General Model, the standard also provides a specific adaptation for contracts with direct participation features (the Variable Fee Approach) and a simplified approach (Premium Allocation Approach) mainly for short-duration contracts.

After the guideline was issued in May 2017, it was further amended in 2020 and 2021. These amendments not only postponed the effective date by two years in the transitional provisions (from 1 January 2021, to 1 January 2023) and provided additional exemptions but also reduced the cost of adopting this guideline by simplifying and modifying certain provisions to make them easier to interpret in specific circumstances. IFRS 17 replaces an interim Standard – IFRS 4 Insurance Contracts – from annual reporting periods beginning on or after 1 January 2023.

B. Amendments to the Classification and Measurement of Financial Instruments – Amendments to IFRS 9 and IFRS 7

The amendments include:

(a) Clarify that a financial liability is derecognized on the settlement date and describe the accounting treatment for settlement of financial liabilities using an electronic payment system before the settlement date.

(b) Clarify how to assess the contractual cash flow characteristics of financial assets that include environmental, social and governance (ESG)-linked features and other similar contingent features.

(d) Require additional disclosures in IFRS 7 for financial assets and liabilities with contractual terms that reference a contingent event (including those that are ESG linked), and equity instruments classified at fair value through other comprehensive income.

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

C. Annual Improvements to IFRS Accounting Standards – Volume 11

(a) Amendments to IFRS 1
(b) Amendments to IFRS 7
(c) Amendments to Guidance on implementing IFRS 7
(d) Amendments to IFRS 9
(e) Amendments to IFRS 10
(f) Amendments to IAS 7

D. Contracts Referencing Nature-dependent Electricity – Amendments to IFRS 9 and IFRS 7

The amendments include:

(a) Clarify the application of the ‘own-use’ requirements.
(b) Permit hedge accounting if these contracts are used as hedging instruments.
(c) Add new disclosure requirements to enable investors to understand the effect of these contracts on a company’s financial performance and cash flows.

The abovementioned standards and amendments are applicable for annual periods beginning on or after 1 January 2026 and have no material impact on the Company.

(3) Standards or interpretations issued, revised or amended, by IASB which are not endorsed by FSC, and not yet adopted by the Company as at the end of the reporting period are listed below.

Items	New, Revised or Amended Standards and Interpretations	Effective Date issued by IASB
a	IFRS 10 “Consolidated Financial Statements” and IAS 28 “Investments in Associates and Joint Ventures” — Sale or Contribution of Assets between an Investor and its Associate or Joint Ventures	To be determined by IASB
b	IFRS 18 “Presentation and Disclosure in Financial Statements”	1 January 2027 (Note)
c	Disclosure Initiative – Subsidiaries without Public Accountability: Disclosures (IFRS 19)	1 January 2027
d	Translation to a Hyperinflationary Presentation Currency (Amendments to IAS 21 and IAS 29)	1 January 2027

Note: On 25 September 2025, the FSC announced in a press release that Taiwan will adopt IFRS 18 in 2028.

(a) IFRS 10 “Consolidated Financial Statements” and IAS 28 “Investments in Associates and Joint Ventures” — Sale or Contribution of Assets between an Investor and its Associate or Joint Ventures

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

The amendments address the inconsistency between the requirements in IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures, in dealing with the loss of control of a subsidiary that is contributed to an associate or a joint venture. IAS 28 restricts gains and losses arising from contributions of non-monetary assets to an associate or a joint venture to the extent of the interest attributable to the other equity holders in the associate or joint ventures. IFRS 10 requires full profit or loss recognition on the loss of control of the subsidiary. IAS 28 was amended so that the gain or loss resulting from the sale or contribution of assets that constitute a business as defined in IFRS 3 between an investor and its associate or joint venture is recognized in full.

IFRS 10 was also amended so that the gains or loss resulting from the sale or contribution of a subsidiary that does not constitute a business as defined in IFRS 3 between an investor and its associate or joint venture is recognized only to the extent of the unrelated investors' interests in the associate or joint venture.

(b) IFRS 18 "Presentation and Disclosure in Financial Statements"

IFRS 18 replaces IAS 1 Presentation of Financial Statements. The main changes are as below:

(1) Improved comparability in the statement of profit or loss (income statement)
IFRS 18 requires entities to classify all income and expenses within their statement of profit or loss into one of five categories: operating; investing; financing; income taxes; and discontinued operations. The first three categories are new, to improve the structure of the income statement, and requires all entities to provide new defined subtotals, including operating profit or loss. The improved structure and new subtotals will give investors a consistent starting point for analyzing entities' performance and make it easier to compare entities.

(2) Enhanced transparency of management-defined performance measures
IFRS 18 requires entities to disclose explanations of company-specific measures related to the income statement, referred to as management performance measures.

(3) Useful grouping of information in the financial statements
IFRS 18 sets out enhanced guidance on how to organize information and whether to provide it in the primary financial statements or in the notes. The changes are expected to provide more detailed and useful information. IFRS 18 also requires entities to provide more transparency about operating expenses, helping investors to find and understand the information they need.

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

This new standard and its amendments permits subsidiaries without public accountability to provide reduced disclosures when applying IFRS Accounting Standards in their financial statements. IFRS 19 is optional for subsidiaries that are eligible and sets out the disclosure requirements for subsidiaries that elect to apply it.

(d) Translation to a Hyperinflationary Presentation Currency (Amendments to IAS 21 and IAS 29)

The amendments include:

(1) Clarify that when the entity’s functional currency is that of a non-hyperinflationary economy but its presentation currency is the currency of a hyperinflationary economy, the entity shall translate its results and financial position using the closing rate at the date of the most recent statement of financial position.

(2) In the above circumstances, when the presentation currency ceases to be hyperinflationary economy, the entity shall not retranslate amounts that arose before the beginning of the reporting period.

(3) When the entity’s functional currency and presentation currency are the currency of a hyperinflationary economy, the entity shall apply the relevant accounting treatment in accordance with paragraph 34 of IAS 29.

The abovementioned standards and interpretations issued by IASB have not yet endorsed by FSC at the date when the Company’s financial statements were authorized for issue, the local effective dates are to be determined by FSC. As the Company is still currently determining the potential impact of the new or amended standards and interpretations listed under (b), it is not practicable to estimate their impact on the Company at this point in time. The remaining new or amended standards and interpretations have no material impact on the Company.

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Summary of material accounting policies

(1) Statement of compliance

The parent company only financial statements of the Company for the years ended 31 December 2025 and 2024 have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (“the Regulations”) and International Financial Reporting Standards, International Accounting Standards, and Interpretations developed by the International Financial Reporting Interpretations Committee, which are endorsed and became effective by the FSC.

(2) Basis of preparation

The parent company only financial statements have been prepared on a historical cost basis, except for financial instruments that have been measured at fair value. The parent company only financial statements are expressed in thousands of New Taiwan Dollars (“NT$’000”) unless otherwise stated.

(3) Foreign currency transactions

The Company’s parent company only financial statements are presented in NT dollars, which is also the Company’s functional currency. Each entity in the Company determines its own functional currency and items included in the financial statements of each entity are measured using that functional currency.

Transactions in foreign currencies are initially recorded by the Company entities at their respective functional currency rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency closing rate of exchange ruling at the reporting date. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rates as of the dates of the initial transactions.

All exchange differences arising on the settlement of monetary items or on translating monetary items are taken to profit or loss in the period in which they arise except for the following:

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

A. Exchange differences arising from foreign currency borrowings for an acquisition of a qualifying asset to the extent that they are regarded as an adjustment to interest costs are included in the borrowing costs that are eligible for capitalization.

B. Foreign currency items within the scope of IFRS 9 Financial Instruments are accounted for based on the accounting policy for financial instruments.

C. Exchange differences arising on a monetary item that forms part of a reporting entity’s net investment in a foreign operation is recognized initially in other comprehensive income and reclassified from equity to profit or loss on disposal of the net investment.

When a gain or loss on a non-monetary item is recognized in other comprehensive income, any exchange component of that gain or loss is recognized in other comprehensive income. When a gain or loss on a non-monetary item is recognized in profit or loss, any exchange component of that gain or loss is recognized in profit or loss.

(4) Current and non-current distinction of assets and liabilities

An asset is classified as current when:

A. The Company expects to realize the asset, or intends to sell or consume it, in its normal operating cycle;

B. The Company holds the asset primarily for the purpose of trading ;

C. The Company expects to realize the asset within twelve months after the reporting period ;

D. The asset is cash or cash equivalent unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is classified as current when:

A. The Company expects to settle the liability in its normal operating cycle ;

B. The Company holds the liability primarily for the purpose of trading ;

C. The liability is due to be settled within twelve months after the reporting period ;

D. The Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting period. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(5) Cash and cash equivalents

Cash and cash equivalents comprises cash on hand, demand deposits and short-term, highly liquid time deposits or investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

(6) Financial instruments

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument.

Financial assets and financial liabilities within the scope of IFRS 9 Financial Instruments are recognized initially at fair value plus or minus, in the case of investments not at fair value through profit or loss, directly attributable transaction costs.

A. Financial instruments: Recognition and Measurement

The Company accounts for regular way purchase or sales of financial assets on the trade date.

The Company classified financial assets as subsequently measured at amortized cost, fair value through other comprehensive income or fair value through profit or loss considering both factors below:

(a) the Company’s business model for managing the financial assets
(b) the contractual cash flow characteristics of the financial asset

Financial assets measured at amortized cost

A financial asset is measured at amortized cost if both of the following conditions are met and presented as note receivables, trade receivables financial assets measured at amortized cost and other receivables etc., on balance sheet as at the reporting date:

(a) the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and
(b) 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.

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Such financial assets are subsequently measured at amortized cost (the amount at which the financial asset is measured at initial recognition minus the principal repayments, plus or minus the cumulative amortization (using the effective interest method) of any difference between the initial amount and the maturity amount and adjusted for any loss allowance) and is not part of a hedging relationship. A gain or loss is recognized in profit or loss when the financial asset is derecognized, through the amortization process or in order to recognize the impairment gains or losses.

Interest revenue is calculated by using the effective interest method. This is calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for:

(a) Purchased or originated credit-impaired financial assets. For those financial assets, the Company applies the credit-adjusted effective interest rate to the amortized cost of the financial asset from initial recognition.
(b) financial assets that are not purchased or originated credit-impaired financial assets but subsequently have become credit-impaired financial assets. For those financial assets, the Company applies the effective interest rate to the amortized cost of the financial asset in subsequent reporting periods

Financial assets measured at fair value through other comprehensive income

A financial asset is measured at fair value through other comprehensive income if both of the following conditions are met:

(a) the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and
(b) 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.

Recognition of gain or loss on a financial asset measured at fair value through other comprehensive income are described as below:

(a) A gain or loss on a financial asset measured at fair value through other comprehensive income recognized in other comprehensive income, except for impairment gains or losses and foreign exchange gains and losses, until the financial asset is derecognized or reclassified.

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(b) When the financial asset is derecognized the cumulative gain or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss as a reclassification adjustment.

(c) Interest revenue is calculated by using the effective interest method. This is calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for:

(i) Purchased or originated credit-impaired financial assets. For those financial assets, the Company applies the credit-adjusted effective interest rate to the amortized cost of the financial asset from initial recognition.

(ii) Financial assets that are not purchased or originated credit-impaired financial assets but subsequently have become credit-impaired financial assets. For those financial assets, the Company applies the effective interest rate to the amortized cost of the financial asset in subsequent reporting periods.

Besides, for certain equity investments within the scope of IFRS 9 that is neither held for trading nor contingent consideration recognized by an acquirer in a business combination to which IFRS 3 applies, the Company made an irrevocable election to present the changes of the fair value in other comprehensive income at initial recognition. Amounts presented in other comprehensive income shall not be subsequently transferred to profit or loss (when disposal of such equity instrument, its cumulated amount included in other components of equity is transferred directly to the retained earnings) and these investments should be presented as financial assets measured at fair value through other comprehensive income on the balance sheet. Dividends on such investment are recognized in profit or loss unless the dividends clearly represent a recovery of part of the cost of investment.

Financial assets at fair value through profit or loss

Financial assets were classified as measured at amortized cost or measured at fair value through other comprehensive income based on aforementioned criteria. All other financial assets were measured at fair value through profit or loss and presented on the balance sheet as financial assets measured at fair value through profit or loss.

Such financial assets are measured at fair value, the gains or losses resulting from remeasurement is recognized in profit or loss which includes any dividend or interest received on such financial assets.

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

B. Impairment of financial assets

The Company recognizes a loss allowance for expected credit losses on financial asset measured at amortized cost.

The Company measures expected credit losses of a financial instrument in a way that reflects:

(a) an unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes;
(b) the time value of money; and
(c) reasonable and supportable information that is available without undue cost or effort at the reporting date about past events, current conditions and forecasts of future economic conditions.

The loss allowance is measures as follow:

(a) At an amount equal to 12-month expected credit losses: the credit risk on a financial asset has not increased significantly since initial recognition or the financial asset is determined to have low credit risk at the reporting date. In addition, the Company measures the loss allowance at an amount equal to lifetime expected credit losses in the previous reporting period, but determines at the current reporting date that the credit risk on a financial asset has increased significantly since initial recognition is no longer met.
(b) At an amount equal to the lifetime expected credit losses: the credit risk on a financial asset has increased significantly since initial recognition or financial asset that is purchased or originated credit-impaired financial asset.
(c) For trade receivables or contract assets arising from transactions within the scope of IFRS 15, the Company measures the loss allowance at an amount equal to lifetime expected credit losses.
(d) For lease receivables arising from transactions within the scope of IFRS 16, the Company measures the loss allowance at an amount equal to lifetime expected credit losses.

At each reporting date, the Company needs to assess whether the credit risk on a financial asset has increased significantly since initial recognition by comparing the risk of a default occurring at the reporting date and the risk of default occurring at initial recognition. Please refer to Note 12 for further details on credit risk.

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

C. Derecognition of financial assets

A financial asset is derecognized when:

(a) The rights to receive cash flows from the asset have expired
(b) The Company has transferred the asset and substantially all the risks and rewards of the asset have been transferred
(c) The Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

On derecognition of a financial asset in its entirety, the difference between the carrying amount and the consideration received or receivable including any cumulative gain or loss that had been recognized in other comprehensive income, is recognized in profit or loss.

D. Financial liabilities and equity

Classification of liabilities or equity

The Company classifies the instrument issued as a financial liability or an equity instrument in accordance with the substance of the contractual arrangement and the definitions of a financial liability, and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. The transaction costs of an equity transaction are accounted for as a deduction from equity to the extent they are incremental costs directly attributable to the equity transaction that otherwise would have been avoided.

Financial liabilities

Financial liabilities within the scope of IFRS 9 Financial Instruments are classified as financial liabilities at fair value through profit or loss or financial liabilities measured at amortized cost upon initial recognition.

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated as of fair value through profit or loss. A financial liability is classified as held for trading if:

(a) It is acquired or incurred principally for the purpose of selling or repurchasing it in the near term;

(b) on initial recognition it is part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of short-term profit-taking; or

(c) It is a derivative (except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument).

If a contract contains one or more embedded derivatives, the entire hybrid (combined) contract may be designated as a financial liability at fair value through profit or loss; or a financial liability may be designated as of fair value through profit or loss when doing so results in more relevant information, because either:

(a) It eliminates or significantly reduces a measurement or recognition inconsistency; or

(b) A group of financial liabilities or financial assets and financial liabilities is managed and its performance is evaluated on a fair value basis, in accordance with a documented risk management or investment strategy, and information about the Company is provided internally on that basis to the key management personnel.

Gains or losses on the subsequent measurement of liabilities at fair value through profit or loss including interest paid are recognized in profit or loss.

Financial liabilities at amortized cost

Financial liabilities measured at amortized cost include interest bearing loans and borrowings that are subsequently measured using the effective interest rate method after initial recognition. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the effective interest rate method amortization process.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or transaction costs.

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Derecognition of financial liabilities

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.

When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified (whether or not attributable to the financial difficulty of the debtor), such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

E. Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount reported in the balance sheet if, and only if, there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously.

(7) Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

A. In the principal market for the asset or liability, or
B. In the absence of a principal market, in the most advantageous market for the asset or liability

The principal or the most advantageous market must be accessible to by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants in their economic best interest.

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

(8) Inventories

The inventory value includes costs incurred in bringing the inventory to its present location and condition. Inventory accounted for purchase cost on a weighted average cost basis with the perpetual inventory system. Ending inventories are valued at lower of cost and net realizable value item by item.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

(9) Investments accounted for under the equity method

According to Article 21 of the Regulation, the Company’s investment in subsidiaries was presented as “Investments accounted for using equity method” and made necessary adjustments. The profit or loss during the period and other comprehensive income presented in the parent company only financial statements shall be the same as the allocations of profit or loss during the period and of other comprehensive income attributable to shareholders of the parent presented in the financial statements prepared on a consolidated basis, and the shareholders’ equity presented in the parent company only financial statements shall be the same as the equity attributable to shareholders of the parent presented in the financial statements prepared on a consolidated basis. The adjustment was considered the difference between investment in subsidiaries in consolidated financial statements according to IFRS 10 Consolidated financial statements and application of IFRS to different reporting entities, debit/credit “Investment accounted for using equity method”, “Share of profit or loss of subsidiaries, associates and joint ventures” or “Share of other comprehensive profit or loss of subsidiaries, associates and joint ventures” etc.

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

The Company’s investment in its associate is accounted for using the equity method other than those that meet the criteria to be classified as held for sale. An associate is an entity over which the Company has significant influence. Joint venture means the Company has rights to the net assets of the joint agreement (with joint controller).

Under the equity method, the investment in the associate or an investment in a joint venture is carried in the balance sheet at cost and adjusted thereafter for the post-acquisition change in the Company’s share of net assets of the associate or joint venture. After the interest in the associate or joint venture is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the Company has incurred legal or constructive obligations or made payments on behalf of the associate or joint venture. Unrealized gains and losses resulting from transactions between the Company and the associate or joint venture are eliminated to the extent of the Company’s related interest in the associate or joint venture.

When changes in the net assets of an associate or a joint venture occur and not those that are recognized in profit or loss or other comprehensive income and do not affect the Company’s percentage of ownership interests in the associate or joint venture, the Company recognizes such changes in equity based on its percentage of ownership interests. The resulting capital surplus recognized will be reclassified to profit or loss at the time of disposing the associate or joint venture on a pro-rata basis.

When the associate or joint venture issues new stock, and the Company’s interest in an associate or a joint venture is reduced or increased as the Company fails to acquire shares newly issued in the associate or joint venture proportionately to its original ownership interest, the increase or decrease in the interest in the associate or joint venture is recognized in additional paid-in capital and investment accounted for using the equity method. When the interest in the associate or joint venture is reduced, the cumulative amounts previously recognized in other comprehensive income are reclassified to profit or loss or other appropriate items. The aforementioned capital surplus recognized is reclassified to profit or loss on a pro rata basis when the Company disposes the associate or joint venture.

The financial statements of the associate or a joint venture are prepared for the same reporting period as the Company. Where necessary, adjustments are made to bring the accounting policies in line with those of the Company.

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

The Company determines at each reporting date whether there is any objective evidence that the investment in the associate or an investment in a joint venture is impaired in accordance with IAS 28 Investments in Associates and Joint Ventures. If this is the case the Company calculates the amount of impairment as the difference between the recoverable amount of the associate or joint venture and its carrying value and recognizes the amount in the 'share of profit or loss of an associate' in the statement of comprehensive income in accordance with IAS 36 Impairment of Assets. In determining the value in use of the investment, the Company estimates:

(a) Its share of the present value of the estimated future cash flows expected to be generated by the associate or joint venture, including the cash flows from the operations of the associate and the proceeds on the ultimate disposal of the investment; or
(b) The present value of the estimated future cash flows expected to arise from dividends to be received from the investment and from its ultimate disposal.

Because goodwill that forms part of the carrying amount of an investment in an associate is not separately recognized, it is not tested for impairment separately by applying the requirements for impairment testing goodwill in IAS 36 Impairment of Assets.

Upon loss of significant influence over the associate or joint venture, the Company measures and recognizes any retaining investment at its fair value. Any difference between the carrying amount of the associate or joint venture upon loss of significant influence and the fair value of the retaining investment and proceeds from disposal is recognized in profit or loss. Furthermore, if an investment in an associate becomes an investment in a joint venture or an investment in a joint venture becomes an investment in an associate, the entity continues to apply the equity method and does not remeasure the retained interest.

(10) Property, plant and equipment

Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Such cost includes the cost of dismantling and removing the item and restoring the site on which it is located and borrowing costs for construction in progress if the recognition criteria are met. Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately. When significant parts of property, plant and equipment are required to be replaced in intervals, the Company recognized such parts as individual assets with specific useful lives and depreciation, respectively. The carrying amount of those parts that are replaced is derecognized in accordance with the derecognition provisions of IAS 16 Property, plant and equipment. When a major inspection is performed, its cost is recognized in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognized in profit or loss as incurred.

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Depreciation is calculated on a straight-line basis over the estimated economic lives of the following assets:

Items	Useful lives
Buildings and structures	3~60 years
Office equipment	3~15 years
Machinery equipment	5~10 years
Other equipment	5~35 years

An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset is recognized in profit or loss.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

(11) Investment property

The Company's owned investment properties are measured initially at cost, including transaction costs. The carrying amount includes the cost of replacing part of an existing investment property at the time that cost is incurred if the recognition criteria are met and excludes the costs of day-to-day servicing of an investment property. Subsequent to initial recognition, other than those that meet the criteria to be classified as held for sale (or are included in a disposal group that is classified as held for sale) in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, investment properties are measured using the cost model in accordance with the requirements of IAS 16 Property, plant and equipment for that model. If investment properties are held by a lessee as right of-use assets and is not held for sale in accordance with IFRS 5, investment properties are measured in accordance with the requirements of IFRS 16.

Depreciation is calculated on a straight-line basis over the estimated economic lives of the following assets:

Buildings
35 years

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Investment properties are derecognized when either they have been disposed of or when the investment property is permanently withdrawn from use and no future economic benefit is expected from its disposal. The difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss in the period of derecognition.

The Company transfers properties to or from investment properties according to the actual use of the properties.

The Company transfers to or from investment properties when there is a change in use for these assets. Properties are transferred to or from investment properties when the properties meet, or cease to meet, the definition of investment property and there is evidence of the change in use.

(12) Leases

The Company assesses whether the contract is (or contains) a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset for a period of time, the Company assesses whether, throughout the period of use, has both of the following:

A. the right to obtain substantially all of the economic benefits from use of the identified asset; and
B. the right to direct the use of the identified asset.

For a contract that is (or contains a lease) the Company accounts for each lease component within the contract as a lease separately from non-lease components of the contract. For a contract that contains a lease component and one or more additional lease or non-lease components, the Company allocates the consideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components. The relative stand-alone price of lease and non-lease components shall be determined on the basis of the price the lessor (or a similar supplier) would charge the Company for that component (or a similar component) separately. If an observable stand-alone price is not readily available, the Company estimates the stand-alone price, maximising the use of observable information.

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Company as a lessee

Except for leases that meet and elect short-term leases or leases of low-value assets, the Company recognizes right-of-use asset and lease liability for all leases which the Company is the lessee of those lease contracts.

At the commencement date, the Company measures the lease liability at the present value of the lease payments that are not paid at that date. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses its incremental borrowing rate. At the commencement date, the lease payments included in the measurement of the lease liability comprise the following payments for the right to use the underlying asset during the lease term that are not paid at the commencement date:

A. fixed payments (including in-substance fixed payments), less any lease incentives receivable;
B. variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;
C. amounts expected to be payable by the lessee under residual value guarantees;
D. the exercise price of a purchase option if the Company is reasonably certain to exercise that option; and
E. payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease.

After the commencement date, the Company measures the lease liability on an amortised cost basis, which increases the carrying amount to reflect interest on the lease liability by using an effective interest method; and reduces the carrying amount to reflect the lease payments made.

At the commencement date, the Company measures the right-of-use asset at cost. The cost of the right-of-use asset comprises:

A. the amount of the initial measurement of the lease liability;
B. any lease payments made at or before the commencement date, less any lease incentives received;
C. any initial direct costs incurred by the lessee; and
D. an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease.

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

For subsequent measurement of the right-of-use asset, the Company measures the right-of-use asset at cost less any accumulated depreciation and any accumulated impairment losses. That is, the Company measures the right-of-use applying a cost model.

If the lease transfers ownership of the underlying asset to the Company by the end of the lease term or if the cost of the right-of-use asset reflects that the Company will exercise a purchase option, the Company depreciates the right-of-use asset from the commencement date to the end of the useful life of the underlying asset. Otherwise, the Company depreciates the right-of-use asset from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term.

The Company applies IAS 36 Impairment of Assets to determine whether the right-of-use asset is impaired and to account for any impairment loss identified.

Except for those leases that the Company accounted for as short-term leases or leases of low-value assets, the Company presents right-of-use assets and lease liabilities in the balance sheet and separately presents lease-related interest expense and depreciation charge in the statements comprehensive income.

For short-term leases or leases of low-value assets, the Company elects to recognize the lease payments associated with those leases as an expense on either a straight-line basis over the lease term or another systematic basis.

Company as a lessor

At inception of a contract, the Company classifies each of its leases as either an operating lease or a finance lease. A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership of an underlying asset. At the commencement date, the Company recognizes assets held under a finance lease in its balance sheet and present them as a receivable at an amount equal to the net investment in the lease.

For a contract that contains lease components and non-lease components, the allocates the Company consideration in the contract applying IFRS 15.

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

The Company recognizes lease payments from operating leases as rental income on either a straight-line basis or another systematic basis. Variable lease payments for operating leases that do not depend on an index or a rate are recognized as rental income when incurred.

(13) Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is its fair value as at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses, if any. Internally generated intangible assets, excluding capitalized development costs, are not capitalized and expenditure is reflected in profit or loss for the year in which the expenditure is incurred.

The useful lives of intangible assets are assessed as either finite or indefinite.

Intangible assets with finite lives are amortized over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method for an intangible asset with a finite useful life is reviewed at least at the end of each financial year. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset is accounted for by changing the amortization period or method, as appropriate, and are treated as changes in accounting estimates.

Intangible assets with indefinite useful lives are not amortized, but are tested for impairment annually, either individually or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in profit or loss when the asset is derecognized.

Computer software

The cost of computer software is amortized on a straight-line basis over the estimated useful life (3 to 10 years).

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

A summary of the policies applied to the Company’s intangible assets is as follows:

	Computer Software
Useful lives	Finite
Amortization method used	Amortized on a straight-line basis over the estimated useful life
Internally generated or acquired	Acquired

(14) Revenue recognition

The Company’s revenue arising from contracts with customers are primarily related to sale of goods. The accounting policies are explained as follows:

Sale of goods

The Company manufactures and sells goods. Revenues are recognized when the committed goods are delivered to customers and control of which is transferred to the customers. (Control of an asset is defined as the customers have ability to direct the use of and obtain substantially all of the remaining benefits from the goods.). The main products of the Company are various processed yarns and synthetic fiber fabrics and revenues are recognized based on the consideration stated in the contract.

The credit period of the Company’s sale of goods is from 30 to 120 day. For most of the contracts, when the Company transfers the goods to customers and has a right to an amount of consideration that is unconditional, these contracts are recognized as trade receivables. The Company usually collects the payments shortly after transfer of goods to customers; therefore, there is no significant financing component to the contract. For some of the contracts, the Company has transferred the goods to customers but does not has a right to an amount of consideration that is unconditional, these contract should be presented as contract assets. Besides, in accordance with IFRS 9, the Company measures the loss allowance for a contract asset at an amount equal to the lifetime expected credit losses.

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Lease income

The Company’s leasing operations are classified as finance leases or operating leases based on the lease terms, the collectability of lease payments, and the extent of future costs to be borne by the lessor. The Company recognizes finance lease interest income and operating lease income accordingly. Please refer to Note 4.12 and Note 6.15 for further details.

(15) Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective assets. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

(16) Government grants

Government grants are recognized where there is reasonable assurance that the grant will be received and all attached conditions will be complied with. Where the grant relates to an asset, it is recognized as deferred income and released to income in equal amounts over the expected useful life of the related asset. When the grant relates to an expense item, it is recognized as income over the period necessary to match the grant on a systematic basis to the costs that it is intended to compensate.

Where the Company receives non-monetary grants, the asset and the grant are recorded gross at nominal amounts and released to the statement of comprehensive income over the expected useful life and pattern of consumption of the benefit of the underlying asset by equal annual installments. Where loans or similar assistance are provided by governments or related institutions with an interest rate below the current applicable market rate, the effect of this favorable interest is regarded as additional government grant.

(17) Post-employment benefits

All regular employees of the Company are entitled to a pension plan that is managed by an independently administered pension fund committee. Fund assets are deposited under the committee’s name in the specific bank account and hence, not associated with the Company. Therefore, fund assets are not included in the parent company only financial statements.

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

For retirement benefits classified as defined contribution plans, the Company's monthly contribution rate for employee retirement pensions must not be less than 6% of the employees' monthly salary. The amount contributed is recognized as an expense in the current period.

Post-employment benefit plan that is classified as a defined benefit plan uses the Projected Unit Credit Method to measure its obligations and costs based on actuarial assumptions. Re-measurements, comprising of the effect of the actuarial gains and losses, the effect of the asset ceiling (excluding net interest) and the return on plan assets, excluding net interest, are recognized as other comprehensive income with a corresponding debit or credit to retained earnings in the period in which they occur. Past service costs are recognized in profit or loss on the earlier of:

A. the date of the plan amendment or curtailment, and
B. the date that the Company recognizes restructuring-related costs

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset, both as determined at the start of the annual reporting period, taking account of any changes in the net defined benefit liability (asset) during the period as a result of contribution and benefit payment.

(18) Income taxes

Income tax expense (income) is the aggregate amount included in the determination of profit or loss for the period in respect of current tax and deferred tax.

Current income tax

Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. Current income tax relating to items recognized in other comprehensive income or directly in equity is recognized in other comprehensive income or equity and not in profit or loss.

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

The income tax for undistributed earnings is recognized as income tax expense in the subsequent year when the distribution proposal is approved by the Shareholders’ meeting.

Deferred tax

Deferred tax is provided on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

Deferred tax liabilities are recognized for all taxable temporary differences, except:

A. Where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination, affects neither the accounting profit nor taxable profit or loss at the time of the transaction, and does not give rise to equal taxable and deductible temporary differences and at the time of the transaction.

B. In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

Deferred tax assets are recognized for all deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized, except:

A. Where the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination, affects neither the accounting profit nor taxable profit or loss at the time of the transaction, and does not give rise to equal taxable and deductible temporary differences at the time of the transaction.

B. In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized.

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted at the reporting date. The measurement of deferred tax assets and deferred tax liabilities reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss. Deferred tax items are recognized in correlation to the underlying transaction either in other comprehensive income or directly in equity. Deferred tax assets are reassessed at each reporting date and are recognized accordingly.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current income tax assets against current income tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

Significant accounting judgements, estimates and assumptions

When preparing the parent company only financial statements, the management of the Company is required to make judgements, estimates and assumptions as of the end of the reporting period. These estimates and assumptions affect the reported amounts of revenues, expenses, assets, and liabilities, as well as the disclosure of contingent liabilities. However, uncertainty about these assumption and estimate could result in outcomes that require a material adjustment to the carrying amount of the asset or liability affected in future periods.

(1) Judgement

In the process of applying the Company’s accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognized in the consolidated financial statements:

De facto control without a majority of the voting rights in invested companies

The Company is the largest shareholder of the invested company with less than 50% equity interest and assessed that it has no control of the invested company and only has significant influence, please refer to Note 6(6) for further details.

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(2) Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. The following points are provided as an explanation:

A. Income tax

Uncertainties exist with respect to the interpretation of complex tax regulations and the amount and timing of future taxable income. Given the wide range of international business relationships and the long-term nature and complexity of existing contractual agreements, differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to tax income and expense already recorded. The Group establishes provisions, based on reasonable estimates, for possible consequences of audits by the tax authorities of the respective counties in which it operates. The amount of such provisions is based on various factors, such as experience of previous tax audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority. Such differences of interpretation may arise on a wide variety of issues depending on the conditions prevailing in the respective Company's domicile.

Deferred tax assets are recognized for all carryforward of unused tax losses and unused tax credits and deductible temporary differences to the extent that it is probable that taxable profit will be available or there are sufficient taxable temporary differences against which the unused tax losses, unused tax credits or deductible temporary differences can be utilized. The amount of deferred tax assets determined to be recognized is based upon the likely timing and the level of future taxable profits and taxable temporary differences together with future tax planning strategies.

B. Accounts receivables — estimation of impairment loss

The Company estimates the impairment loss of accounts receivables at an amount equal to lifetime expected credit losses. The credit loss is the present value of the difference between the contractual cash flows that are due under the contract (carrying amount) and the cash flows that expects to receive (evaluate forward looking information). However, as the impact from the discounting of short-term receivables is not material, the credit loss is measured by the undiscounted cash flows. Where the actual future cash flows are lower than expected, a material impairment loss may arise. Please refer to Note 6(4) and (16) for more details.

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

C. Inventories

Estimates of net realizable value of inventories take into consideration that inventories may be damaged, become wholly or partially obsolete, or their selling prices have declined. The estimates are based on the most reliable evidence available at the time the estimates are made. Please refer to Note 6(5) for more details.

Contents of significant accounts

(1) Cash and cash equivalents

	As of 31 December
	2025	2024
Cash on hand & demand deposits	$256,999	$304,627

(2) Financial assets at fair value through profit or loss

	As of 31 December
	2025	2024
Financial assets at fair value through profit or loss,
- Current
Listed companies’ stocks
Highwealth Construction Corp.
Ordinary share	$18,572	$19,118
New Asia Construction & Development Corp.
Ordinary share	16,083	28,540
Ching Feng Home Fashions Co., Ltd.
Ordinary share	2,005	2,885
Funds
PineBridge Preferred Securities Income Fund	80,042	87,963
Total	$116,702	$138,506

The Company’s financial assets at fair value through profit or loss were not pledged.

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(3) Financial assets measured at fair value through other comprehensive income

	As of 31 December
	2025	2024
Equity instrument investments measured at fair value through other comprehensive income
- Non-current:
Listed companies’ stocks
JIIN MING INDUSTRY CO., LTD.
Private placement of ordinary share	$343,375	$428,250
GOLD RAIN ENTERPRISES CORP.	16,327	-
Ordinary share
GOLD RAIN ENTERPRISES CORP.
Private placement of ordinary share	93,330	109,800
Unlisted companies’ stocks
TAIWAN FILAMENT WEAVING DEVELOPMENT CO., LTD.
Ordinary share (Note)	-	-
Preference share	285	295
Total	$453,317	$538,345

Note: The Company originally held ordinary shares of TAIWAN FILAMENT WEAVING DEVELOPMENT CO., LTD., classified as non-current financial assets measured at fair value through other comprehensive income. As the investee continued to incur losses according to its most recent financial statements, the Company fully recognized an impairment loss on the investment in June 2022.

The Company’s dividend income related to equity instrument investments measured at fair value through other comprehensive income for the ended 31 December 2025 and 2024 are as follows:

	For the years ended 31 December
	2025	2024
Related to investments held at the end of the reporting period	$12,373	$4,616
Dividends recognized during the period	$12,373	$4,616

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(4) Notes and accounts receivable, including related parties

	As of 31 December
	2025	2024
Notes receivables	$1,890	$10,996
Notes receivables from related parties	5,520	-
Less: allowance for doubtful debts	-	-
Subtotal	7,410	10,996
Accounts receivable	73,875	121,070
Less: allowance for doubtful debts	(10,329)	(7,387)
Subtotal	63,546	113,683
Accounts receivable from related parties	1,483	1,049
Total	$72,439	$125,728

The Company’s notes receivable and accounts receivable were not pledged.

Accounts receivable credit terms are generally on 30-120 day terms. The total carrying amount as of 31 December 2025 and 2024 are NT$82,768 and NT$133,115, respectively. Please refer to Note 6 (16) for more details on loss allowance of accounts receivable for the years ended 31 December 2025 and 2024 and Note 12 for more details on credit risk.

(5) Inventories

	As of 31 December
	2025	2024
Finished goods	$83,679	$84,677
Work in progress	83,460	98,509
Raw materials	64,911	80,511
Supplies & parts	14,328	22,639
Total	$246,378	$286,336

The cost of goods sold for the years ended 31 December 2025 and 2024 are as follows, including the price reduction (gain from price recovery) of inventories:

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

	For the years ended 31 December
	2025	2024
Cost of goods sold	$683,091	$1,002,688
The price (gain from price recovery) deduction of inventories	$(73,992)	$82,964

The Company recognized gain from price recovery of inventories as of 31 December 2025 as the slow-moving inventory had been gradually consumed and the obsolete inventory of the Company had decreased, resulting in the reversal gains of the write-down of inventories.

No inventories were pledged.

(6) Investments accounted for under the equity method

The financial reports of investment subsidiaries are expressed in "Investments using the equity method", and necessary evaluation adjustments are:

	As of 31 December
	2025		2024
Investee	Amount	Percentage of ownership	Amount	Percentage of ownership
Investments in subsidiaries:
CHANG FU INVESTMENT CO., LTD.	$42,765	100%	$44,429	100%
HUNG YU TECHNOLOGY CO., LTD.	31,311	100%	30,179	100%
Investments accounted for using the equity in associates:
TAIWAN TAFFETA FABRIC CO., LTD.	503,867	22.88%	544,322	22.88%
Total	$577,943		$618,930

A. Investments in associates:

Information on the material associate of the Company:

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Company name: TAIWAN TAFFETA FABRIC CO., LTD.

Judgments in determining that the Company only has significant influence: Although the Company holds 22.88% of the voting rights of TAIWAN TAFFETA FABRIC CO., LTD., an associate in which the Company is the single largest shareholder. However, the Company has obtained 2 out of 11 seatson the board of directors and therefore does not have control. Considering the relative size and dispersion of the voting rights held by other shareholders, as well as the voting patterns observed in previous shareholders' meetings indicating that other shareholders are not passive. As a result, the Company is unable to unilaterally direct the relevant activities of TAIWAN TAFFETA FABRIC CO., LTD. Therefore, the Company has no control of TAIWAN TAFFETA FABRIC CO., LTD. but has significant influence over TAIWAN TAFFETA FABRIC CO., LTD.

Nature of the relationship with the associate: TAIWAN TAFFETA FABRIC CO., LTD. is in the business of manufacturing and selling related products in the Group's industry chain. The Company invested in TAIWAN TAFFETA FABRIC CO., LTD. for the purpose of upstream/downstream integration.

Principal place of business (country of incorporation): R.O.C.

Fair value of the investment in the associate when there is a quoted market price for the investment: TAIWAN TAFFETA FABRIC CO., LTD. is a listed entity on the Taiwan Stock Exchange (TWSE). The fair value of the investment in TAIWAN TAFFETA FABRIC CO., LTD. was NT$387,744 and NT$442,712, as of 31 December 2025 and 31 December 2024, respectively.

Reconciliation of the associate's summarized financial information presented to the carrying amount of the Group's interest in the associate:

	As of 31 December
	2025	2024
Current assets	$1,015,586	$1,099,394
Non-current assets	969,368	829,114
Current liabilities	(596,382)	(336,027)
Non-current liabilities	(11,094)	(19,132)
Equity	1,377,478	1,573,349
Proportion of the Company's ownership	22.88%	22.88%
Subtotal	315,167	359,982
Land	188,545	184,340
Eliminations from intercompany transactions	155	-
Carrying amount of the investment	$503,867	$544,322

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

	For the years ended 31 December
	2025	2024
Operating revenue	$1,537,001	$1,623,569
Net (loss) income from continuing operations for the current period	(136,994)	12,215
Other comprehensive loss	(28,310)	(7,322)
Total comprehensive (loss) income	(165,304)	4,893

The associates had no contingent liabilities or capital commitments as of 31 December 2025 and 31 December 2024, and they were not pledged.

B. Investment in subsidiaries:

The Company's investment in subsidiaries is expressed in the individual financial statements as "Investments accounted for using the equity method," with necessary valuation adjustments made. The investments in Changfu and Hongyu are not significant to the Group. The summarized financial information of the Company's investments in subsidiaries is presented below based on the proportionate share held:

	As of 31 December
	2025	2024
Net (loss) income from continuing operations for the current period	$(737)	$620
Other comprehensive income (loss) for the current period (after-tax profit and loss)	205	(3,913)
Total comprehensive loss for the current period	$(532)	$(3,293)

(7) Property, plant and equipment

	As of 31 December
	2025	2024
Owner occupied property, plant and equipment	$591,542	$649,155

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

	Land	Buildings and structures	Machinery equipment	Office equipment	Other equipment	Construction in progress and equipment awaiting inspection	Total
Cost (Including revaluation increment)
As of 1 January 2025	$394,694	$448,726	$1,305,383	$122,175	$66,428	$3,422	$2,340,828
Additions	-	232	547	1,160	-	8,545	10,484
Disposal	-	-	(547,765)	(32,829)	(300)	-	(580,894)
Reclassification	(15,944)	(26,042)	6,746	336	-	(7,082)	(41,986)
As of 31 December 2025	$378,750	$422,916	$764,911	$90,842	$66,128	$4,885	$1,728,432
As of 1 January 2024	$394,694	$448,130	$1,387,429	$104,341	$67,671	$26,388	$2,428,653
Additions	-	596	3,351	2,842	653	23,672	31,114
Disposal	-	(350)	(103,184)	(1,424)	(1,981)	-	(106,939)
Reclassification	-	350	17,787	16,416	85	(46,638)	(12,000)
As of 31 December 2024	$394,694	$448,726	$1,305,383	$122,175	$66,428	$3,422	$2,340,828
Depreciation and impairment:
As of 1 January 2025	$ -	$328,419	$1,207,278	$93,220	$62,756	$ -	$1,691,673
Depreciation	-	11,243	17,939	6,503	701	-	36,386
Disposal	-	-	(544,386)	(27,729)	(300)	-	(572,415)
Reclassification	-	(18,754)	-	-	-	-	(18,754)
As of 31 December 2025	$ -	$320,908	$680,831	$71,994	$63,157	$ -	$1,136,890
As of 1 January 2024	$ -	$316,837	$1,290,309	$87,901	$63,838	$ -	$1,758,885
Depreciation	-	11,932	20,153	6,719	899	-	39,703
Disposal	-	(350)	(103,184)	(1,400)	(1,981)	-	(106,915)
As of 31 December 2024	$ -	$328,419	$1,207,278	$93,220	$62,756	$ -	$1,691,673
Net carrying amounts as of:
31 December 2025	$378,750	$102,008	$84,080	$18,848	$2,971	$4,885	$591,542
31 December 2024	$394,694	$120,307	$98,105	$28,955	$3,672	$3,422	$649,155

A. Please refer to Note 8 for more details on property, plant and equipment under pledge.
B. There is no capitalization of interest due to purchase of property, plant and equipment.

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(8) Investment property

The Company's investment properties includes both owned investment properties. The Company has entered into commercial property leases on its owned investment properties with terms of between 2 and 20 years. Certain lease agreements contain clauses for annual rent adjustments based on market conditions, and also stipulate that, in the event of early termination by the lessee, the Company is entitled to charge the lessee a penalty equivalent to the full amount of rent for the entire lease term.

	Land	Building
Cost :
As of 1 Jan. 2025	$ -	$ -
Additions from acquisitions	1,242,961	-
Transfers from owner-occupied property	15,944	26,042
Disposal	-	-
As of 31 Dec. 2025	$1,258,905	$26,042
Depreciation :
As of 1 Jan. 2025	$ -	$ -
Depreciation	-	546
Transfer	-	18,754
As of 31 Dec. 2025	$ -	$19,300
Net carrying amount as of :
As of 31 Dec. 2025	$1,258,905	$6,742
	For the years ended 31 December
	2025	2024
Rental income from investment properties	$55,357	$ -

Please refer to Note 8 for information on investment properties provided as collateral.

Investment properties held by the Company are not measured at fair value but for which the fair value is disclosed. The fair value measurements of the investment properties are categorized within Level 3. The fair values of the Group's investment properties were determined by independent external appraisers, and the appraised fair value as of December 31, 2025, was as follows:

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Item	Valuation approach	Appraised value	Valuation date
Land and buildings(Changhua)	Market approach and cost approach	$95,872	July 2025
Land(Taichung)	Market approach and cost approach	1,413,447	May 2025
		$1,509,319

(9) Intangible assets

	Computer software
Cost :
As of 1 Jan. 2025	$13,892
Addition– acquired separately	-
As of 31 Dec. 2025	$13,892
As of 1 Jan. 2024	$1,170
Addition– acquired separately	12,722
As of 31 Dec. 2024	$13,892
Amortization and impairment :
As of 1 Jan. 2025	$469
Amortization	2,779
As of 31 Dec. 2025	$3,248
As of 1 Jan. 2024	$59
Amortization	410
As of 31 Dec. 2024	$469
Net carrying amount as of :
As of 31 Dec. 2025	$10,644
As of 31 Dec. 2024	$13,423

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Amortization expense of intangible assets under the statement of comprehensive income :

	For the years ended 31 December
	2025	2024
General and administrative costs	$2,336	$322
Research and development costs	$443	$88

(10) Other Payables

	As of 31 December
	2025	2024
Salaries and bonuses payable	$55,435	$40,588
Commissions payable	9,321	11,030
Accrued utilities	3,520	6,026
Accrued labor and health insurance expenses	2,401	2,947
Accrued freight expenses	1,527	1,633
Payable on machinery and equipment	1,810	821
Other	11,702	12,212
Total	$85,716	$75,257

(11) Short-term loans

	As of 31 December
	2025	2024
Unsecured bank loans	$190,000	$120,000
Interest Rates (%)	2.06% ~ 2.15%	2.124736%

The Company's unused short-term lines of credits amounted to NT$360,000 and NT$250,000 as of 31 December 2025 and 2024, respectively.

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(12) Long-term borrowings

Details of long-term loans as at 31 December 2025 are as follows:

Lenders	As of 31 Dec. 2025	Interest Rate (%)	Maturity date and terms of repayment
Taipei Fubon Bank (Note)	$1,890,000	2.144%	Repayable quarterly from 24 June 2025 to 24 June 2045 and interest is paid monthly. The first 24 months after the initial drawdown are a grace period for principal repayment. Commencing from the 25th month, principal shall be repaid in 18 annual installments.
Less: current portion	—
Total	$1,890,000

Note: ertain land and buildings are pledged as first priority security for secured bank loans with Taipei Fubon Bank, please refer to Note 8 for more details.

The balance of long-term borrowings was $0 as of 31 December 2024.

(13) Post-employment benefits

Defined contribution plan

The Company adopted a defined contribution plan in accordance with the Labor Pension Act of the R.O.C. Under the Labor Pension Act, the Company will make monthly contributions of no less than 6% of the employees’ monthly wages to the employees’ individual pension accounts. The Company have made monthly contributions of 6% of each individual employee’s salaries or wages to employees’ pension accounts.

Pension expenses under the defined contribution plan for the years ended 31 December 2025 and 2024 were NT$5,938 and NT$6,981, respectively.

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Defined benefits plan

The Company adopts a defined benefit plan in accordance with the Labor Standards Act of the R.O.C. The pension benefits are disbursed based on the units of service years and the average salaries in the last month of the service year. Two units per year are awarded for the first 15 years of services while one unit per year is awarded after the completion of the 15th year. The total units shall not exceed 45 units. Under the Labor Standards Act, the Company contributes an amount equivalent to 8% of the employees' total salaries and wages on a monthly basis to the pension fund deposited at the Bank of Taiwan in the name of the administered pension fund committee. Before the end of each year, the Company assesses the balance in the designated labor pension fund. If the amount is inadequate to pay pensions calculated for workers retiring in the same year, the Company will make up the difference in one appropriation before the end of March the following year.

The Ministry of Labor is in charge of establishing and implementing the fund utilization plan in accordance with the Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund. The pension fund is invested in-house or under discretionary accounts, based on a passive-aggressive investment strategy for long-term profitability. The Ministry of Labor establishes checks and risk management mechanism based on the assessment of risk factors including market risk, credit risk and liquidity risk, in order to maintain adequate manager flexibility to achieve targeted return without over-exposure of risk. With regard to utilization of the pension fund, the minimum earnings in the annual distributions on the final financial statement shall not be less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. Treasury Funds can be used to cover the deficits after the approval of the competent authority. As the Company does not participate in the operation and management of the pension fund, no disclosure on the fair value of the plan assets categorized in different classes could be made in accordance with paragraph 142 of IAS 19. The Company expects to contribute NT$5,000 thousand to its defined benefit plan during the 12 months beginning after 31 December 2025.

The weighted average duration of the defined benefits obligation as of 31 December 2025 and 2024 were both 6 years.

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Pension costs recognized in profit or loss are as follows:

	For the years ended 31 December
	2025	2024
Current service cost	$413	$410
Net interest on the net defined benefit assets	109	259
Total	$522	$669

Reconciliations in the defined benefit obligation and fair value of plan assets are as follows:

	As of
	31 Dec.2025	31 Dec. 2024	1 Jan. 2024
Present value of defined benefit obligation	$96,523	$103,063	$104,423
Fair value of plan assets	(95,525)	(92,656)	(80,863)
Net defined benefit liabilities (assets)	$998	$10,407	$23,560

Reconciliation of liability (asset) of the defined benefit plan is as follows:

	Defined benefit obligation	Plan assets at fair value	Net defined benefit liabilities (assets)
As of 1 January 2025	$103,063	$(92,656)	$10,407
Current service cost	413	-	413
Interest expenses (income)	1,409	(1,300)	109
Subtotal	104,885	(93,956)	10,929
Remeasurements of the defined benefit liabilities /assets:
Actuarial gains and losses arising from changes in financial assumptions	2,926	-	2,926
Experience adjustments	298	-	298
Remeasurements of the defined benefit assets	-	(6,586)	(6,586)
Subtotal	3,224	(6,586)	(3,362)
Payments of benefit obligation	(11,586)	11,586	-
Contributions by employer	-	(6,569)	(6,569)
As of 31 December 2025	$96,523	$(95,525)	$998

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

	Defined benefit obligation	Plan assets at fair value	Net defined benefit liabilities (assets)
As of 1 January 2024	$104,423	$(80,863)	$23,560
Current service cost	410	-	410
Interest expenses (income)	1,162	(903)	259
Subtotal	105,995	(81,766)	24,229
Remeasurement of defined benefit liability/asset:
Actuarial gains and losses arising from changes in financial assumptions	1,014	-	1,014
Experience adjustments	817	-	817
Remeasurements of the defined benefit assets	-	(7,808)	(7,808)
Subtotal	1,831	(7,808)	(5,977)
Payments of benefit obligation	(4,763)	4,763	-
Contributions by employer	-	(7,845)	(7,845)
As of 31 December 2024	$103,063	$(92,656)	$10,407

The following significant actuarial assumptions are used in determining the Company's defined benefit plan:

	As of 31 December
	2025	2024
Discount rate	1.30%	1.60%
Expected salary increase rate	3.25%	3.00%

Sensitivity analysis for significant assumption is shown below:

	For the years ended 31 December
	2025		2024
	Defined benefit obligation increase	Defined benefit obligation decrease	Defined benefit obligation increase	Defined benefit obligation decrease
Discount rate increase by 0.25%		$(1,448)		$(1,623)
Discount rates decrease by 0.25%	$1,412		$1,580
Future salary increase by 0.25%	1,343		1,508
Future salary decrease by 0.25%		(1,370)		(1,541)

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

The sensitivity analyses above are based on a change in a significant assumption (for example: change in discount rate or future salary), keeping all other assumptions constant. The sensitivity analyses may not be representative of an actual change in the defined benefit obligation as it is unlikely that changes in assumptions would occur in isolation of one another.

There was no change in the methods and assumptions used in preparing the sensitivity analyses compared to the previous period.

(14) Equity

A. Common stock

As of 1 January 2024, the Company’s authorized capital was NT$2,200,000 thousand, issued Paid-in capital was NT$ 1,306,660 thousand, and issued shares was 130,666 thousand shares, each at a par value of NT$10. There have been no changes as of 31 December 2025. Each share has one voting right and a right to receive dividends.

B. Capital surplus

	As of 31 December
	2025	2024
Only allowed for covering the deficit
Unpaid dividends due to overdue	$1,623	$1,538

According to the Company Act, the additional paid-in capital shall not be used except for covering the deficit of the company. When a company incurs no loss, it may distribute the additional paid-in capital arising from the issuance of new shares at a premium and donations. The distribution could be made in cash or in the form of dividend shares to its shareholders in proportion to the number of shares being held by each of them. The distribution could be made in cash or in the form of dividend shares to its shareholders in proportion to the number of shares being held by each of them.

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

C. Retained earnings and policies of dividend' distribution

The Company's policy of dividend distribution is in line with current and future development plans, considering the investment environment, capital requirements, and domestic and international competitive conditions, as well as the interests of shareholders. Earnings distribution is based on the principle of sustainable and stable operation of the Company. According to the Company's Articles of Incorporation, current year's earnings, if any, shall be distributed in the following order: payment of all taxes and dues; offset operation losses in previous years (including adjustments to unappropriated earnings); set aside 10% of the remaining amount as legal reserve; set aside or reverse special reserve in accordance with law and regulations. After deducting the items above from the current year's earnings, the distribution of the remaining portion with the undistributed earnings at the beginning of period (including adjustments to unappropriated earnings). In the case where all or part of the earnings distribution, legal reserve, or capital reserve is to be distributed in cash, such distribution shall be authorized by a resolution of the board of directors attended by at least two-thirds of the directors, and approved by a majority vote of the attending directors, and subsequently reported to the shareholders' meeting.

According to the Company Act, the Company needs to set aside amount to legal reserve unless where such legal reserve amounts to the total paid-in capital. The legal reserve can be used to make good the deficit of the Company. When the Company incurs no loss, it may distribute the portion of legal reserve which exceeds 25% of the paid-in capital by issuing new shares or by cash in proportion to the number of shares being held by each of the shareholders.

When the Company distributing distributable earnings, it shall set aside to special reserve, an amount equal to "other net deductions from shareholders" equity for the current fiscal year, provided that if the company has already set aside special reserve according to the requirements for the adoption of IFRS, it shall set aside supplemental special reserve based on the difference between the amount already set aside and other net deductions from shareholders' equity. For any subsequent reversal of other net deductions from shareholders' equity, the amount reversed may be distributed from the special reserve.

Due to the inadequate amount of retained earnings increase arising from the first-time adoption of IFRS, only the retained earnings increase of NT$201,716 resulting from the conversion to IFRS was set aside as special reserve.

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

The FSC on 31 March 2021 issued Order No. Financial-Supervisory- Securities-Corporate-1090150022, which sets out the following provisions for compliance:

On a public company's first-time adoption of the IFRS, for any unrealized revaluation gains and cumulative translation adjustments (gains) recorded to shareholders' equity that the company elects to transfer to retained earnings by application of the exemption under IFRS 1, the company shall set aside special reserve. For any subsequent use, disposal or reclassification of related assets, the Company can reverse the special reserve by the proportion of the special reserve first appropriated and distribute it. As the Company's retained earnings was negative (accumulated deficit) as of 1 January 2012, the standard had no impact on the Company.

Additionally, during the period from 1 January to 31 December 2025 and 2024, the Company did not encounter any circumstances that would require the reversal of special reserves due to the use, disposal, or reclassification of related assets. As of 31 December 2025 and 31 December 2024, the amounts of special reserve for the first time adoption remained at NT$69,236.

Details of the appropriation of earnings for 2025 were approved by the shareholders on March 13, 2026, except for the cash dividends, which had been approved by the Board of Directors on March 30, 2026 and recognized as dividends payable, while the remaining items are subject to resolution at the Shareholders' Meeting. ( In addition, the appropriation of earnings for 2024 were proposed by the Board of Directors on March 12, 2025 and approved by the shareholders on May 30, 2025. A summary is presented as follows:

	Appropriation of earnings		Dividend per share (NT$)
	2025	2024	2025	2024
Legal reserve	$ -	$1,322
Common stock -cash dividend (Note)	65,333	65,333	$0.5	$0.5

(Note) Pursuant to the Articles of Incorporation, the Company's Board of Directors approved, by special resolution on March 12, 2025, the proposal for cash dividends on common shares for fiscal year 2024.

Please refer to Note 6(18) for details on employees' compensation and remuneration to directors and supervisors.

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(15) Operating revenue

	For the years ended 31 December
	2025	2024
Revenue from contracts with customers
Sale of goods	$714,735	$989,122
Lease Income	55,357	-
Total	$770,092	$989,122
Timing of revenue recognition:
At a point in time	$714,735	$989,122
Over time	55,357	-
Total	$770,092	$989,122

Analysis of revenue from contracts with customers for the years ended 31 December 2025 and 2024 are as follows:

Contract balances

A. Contract liabilities – current

	As of
	31 Dec. 2025	31 Dec. 2024	1 Jan. 2024
Current :
Sales of goods	$31,863	$38,824	$48,301
Non-current: :
Rental income from investment properties	33,166	-	-
Total	$65,029	$38,824	$48,301

The decrease in contract liabilities for the year ended 31 December 2025 and 2024 was primarily due to the satisfaction of performance obligations associated with customer payments. The performance of contract liabilities at the beginning of the periods is as follows:

	For the years ended 31 December
	2025	2024
The opening balance transferred to trade receivables	$38,824	$48,301

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(16) Expected credit loss

	For the years ended 31 December
	2025	2024
Operating expenses – Expected credit losses
Accounts receivable	$(2,942)	$(5,204)

Please refer to Note 12 for more details on credit risk.

The Company measures the loss allowance of its trade receivables (including note receivables and trade receivables) at an amount equal to lifetime expected credit losses. The assessment of the Company's loss allowance as of 31 December 2025 and 2024 are as follows:

A. The historical credit loss experience for accounts receivable shows that different customer segments do not have significantly different loss patterns. Therefore, the loss allowance of contract assets is measured at an amount equal to lifetime expected credit losses and with no distinction between groups, details are as follows:

31 December 2025

	Past due days
	Not yet due	1-60 days	61-90 days	91-120 days	Over 120 days	Total
Gross carrying amount	$47,887	$25,173	$7,162	$1,020	$1,526	$82,768
Loss rate	2.76%	10.47%	55.28%	86.67%	100.00%
Lifetime expected credit losses	(1,324)	(2,636)	(3,959)	(884)	(1,526)	(10,329)
Carrying amount	$46,563	$22,537	$3,203	$136	$ -	$72,439

31 December 2024

	Past due days
	Not yet due	1-60 days	61-90 days	91-120 days	Over 120 days	Total
Gross carrying amount	$81,436	$42,558	$4,648	$2,263	$2,210	$133,115
Loss rate	0.70%	3.50%	32.42%	71.23%	100.00%
Lifetime expected credit losses	(570)	(1,488)	(1,507)	(1,612)	(2,210)	(7,387)
Carrying amount	$80,866	$41,070	$3,141	$651	$ -	$125,728

Note: The Company's note receivables are not overdue.

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

The movement in the provision for impairment of note receivables and trade receivables during the 31 December 2025 and 2024 are as follows:

	Notes receivables	Accounts receivable	Total
As of 1 January 2025	$ -	$7,387	$7,387
Addition	-	2,942	2,942
As of 31 December 2025	$ -	$10,329	$10,329
As of 1 January 2024	$ -	$2,183	$2,183
Addition	-	5,204	5,204
As of 31 December 2024	$ -	$7,387	$7,387

(17) Lease

A. The Company as a lessee

The Company leases transportation equipment. The lease terms range from 1 to 5 years.

The Company’s leases effect on the financial position, financial performance and cash flows are as follows:

(a) Amounts recognized in the balance sheet

(i) Right-of-use assets

The carrying amount of right-of-use assets

	As of 31 December
	2025	2024
Transportation equipment	$2,726	$3,559

The Company recognized an increase in right-of-use assets of NT$948 and NT$4,421 for the year ended 31 December 2025 and 2024, respectively.

(ii) Leases liabilities

	As of 31 December
	2025	2024
Leases liabilities
Current	$1,808	$1,533
Non-current	958	2,049
Total	$2,766	$3,582

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Please refer to Note 6, 19(4) for the interest on lease liabilities recognized during the years ended 31 December 2025 and 2024. Refer to Note 12(5) liquidity risk management for the maturity analysis for lease liabilities.

(b) Amounts recognized in the profit or loss of comprehensive income statement

Depreciation charged for right-of-use assets

	For the years ended 31 December
	2025	2024
Transportation equipment	$1,781	$1,327

	For the years ended 31 December
	2025	2024
The expenses relating to short-term leases	$149	$221

(d) Cash outflow relating to leasing activities

During the years ended 31 December 2025 and 2024, the Company’s total cash outflows for leases amounting to NT$1,840 and NT$1,641.

B. The Company as a lessor

Please refer to Note 6(8) for details on the Company’s owned investment properties and investment properties held by the Company as right-of-use assets. Leases of owned investment properties are classified as operating leases as they do not transfer substantially all the risks and rewards incidental to ownership of underlying assets.

The Company has entered into a lease agreement on certain plant located in Daya District, Taichung City, with a lease term of 20 years. These leases are classified as finance leases as they transfer substantially all the risks and rewards incidental to ownership of underlying assets.

	For the years ended 31 December,2025
Lease income for operating leases
Income relating to fixed lease payments and variable lease payments that depend on an index or a rate	$37,738
Lease income recognized from finance leases
Finance income on net investment in leases	17,619
Total	$55,357

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

For operating leases entered by the Company, the undiscounted lease payments to be received and a total of the amounts for the remaining years as at 31 December 2025 are as follows:

	For the years ended 31 December,2025
Undiscounted lease payments
Not later than one year	$47,107
Later than one year but not later than two years	48,991
Later than two years but not later than three years	50,950
Later than three years but not later than four years	52,989
Later than four years but not later than five years	55,108
Later than five years	1,097,001
Subtotal	1,352,146
Less: Unearned finance income to finance leases	(488,748)
Less: Less: loss allowance	-
Net investment in the lease (lease receivables)	$863,398
Current	$10,615
Non-current	852,783
Total	$863,398

As there were no such transactions, the balance was $0 as of 31 December 2024.

(18) Summary statement of employee benefits, depreciation and amortization expenses by function for the years ended 31 December 2025 and 2024:

| By function
By nature | For the years ended 31 December | | | | | |
| --- | --- | --- | --- | --- | --- | --- |
| | 2025 | | | 2024 | | |
| | Operating costs | Operating expenses | Total | Operating costs | Operating expenses | Total |
| Employee benefits expense | | | | | | |
| Salaries | $97,893 | $78,182 | $176,075 | $130,253 | $62,159 | $192,412 |
| Labor and health insurance | 11,049 | 5,413 | 16,462 | 14,699 | 5,677 | 20,376 |
| Pension | 3,937 | 2,523 | 6,460 | 5,314 | 2,336 | 7,650 |
| Director's Remuneration | - | 5,772 | 5,772 | - | 6,502 | 6,502 |
| Other employee benefits expense | 2,690 | 2,095 | 4,785 | 4,389 | 2,025 | 6,414 |
| Depreciation | 32,802 | 5,911 | 38,713 | 36,615 | 4,415 | 41,030 |
| Amortization | 646 | 2,779 | 3,425 | 674 | 410 | 1,084 |

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

As of 31 December 2025 and 2024, the number of employees and directors of the Company were 246 and 314 respectively. Among them, the number of directors not concurrently serving as employees were 9 and 8 respectively.

The Company's average employee benefit expenses for the years ended 31 December 2025 and 2024 were NT$860 and NT$743, respectively. The Company's average salary expenses for the years ended 31 December 2025 and 2024 were NT$743 and NT$631, respectively. The Company's average salary expense adjustment for the years ended 31 December 2025 decreased by 17.75%.

According to the Articles of Association, should not be less than 2% and no higher than 3% of profit of the current year is distributable as employees' compensation and remuneration to directors and supervisors. However, the Company's accumulated losses shall have been covered. No less than 30% of the employee compensation shall be allocated to non-managerial employees, either in the form of shares or in cash. Such distribution shall be determined by a resolution of the Board of Directors with the attendance of at least two-thirds of the directors and the approval of a majority of the directors present, and shall be reported to the shareholders' meeting. Information on the Board of Directors' resolution regarding the employees' compensation and remuneration to directors and supervisors can be obtained from the "Market Observation Post System" on the website of the TWSE.

The Company incurred losses for the years ended 31 December 2025 and 2024, and therefore did not accrue employees' compensation and remuneration to directors.

Due to the net loss incurred for the year ended December 31, 2024, the Board of Directors resolved on 12 March 2025 not to distribute employee compensation and director remuneration. These amounts have no difference from the figures recognized as expenses in the 2024 financial report.

(19) Non-operating income and expenses

A. Interest income

For the years ended 31 December
2025	2024
$1,500	$13,164

Financial assets measured at amortized cost

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

B. Other income

	For the years ended 31 December
	2025	2024
Dividend income	$12,373	4,616
Other income	12,639	11,088
Total	$25,012	$15,704

C. Other gains and losses

	For the years ended 31 December
	2025	2024
Foreign exchange gain, net	$29,763	$17,764
(Loss) Gains on disposal of property, plant and equipment	(2,516)	2,215
Loss of financial asset at fair value through profit or loss	(2,320)	(2,857)
Other loss	(6,746)	(6)
Total	$18,181	$17,116

D. Finance costs

	For the years ended 31 December
	2025	2024
Interest on borrowings from bank	$3,566	$1,075
Interest on lease liabilities	85	56
Total	$3,651	$1,131

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(20) Components of other comprehensive income

As of 31 December 2025

	Arising during the period	Reclassification adjustments during the period	Other comprehensive income, before tax	Income tax benefit (expense)	Other comprehensive income, net of tax
Not to be reclassified to profit or loss in subsequent periods:
Remeasurements of defined benefit plans	$3,362	$ -	$3,362	$(672)	$2,690
Unrealized gains (losses) from equity instruments measured at fair value through other comprehensive income	(99,742)	-	(99,742)	-	(99,742)
To be reclassified to profit or loss in subsequent periods:
Share of other comprehensive income of associates and joint ventures accounted for using the equity method	(1,385)	-	(1,385)	-	(1,385)
Total of other comprehensive income	$(97,765)	$ -	$(97,765)	$(672)	$(98,437)

As of 31 December 2024

	Arising during the period	Reclassification adjustments during the period	Other comprehensive income (loss), before tax	Income tax benefit (expense)	Other comprehensive income (loss), net of tax
Not to be reclassified to profit or loss in subsequent periods:
Remeasurements of defined benefit plans	$5,977	$ -	$5,977	$ (1,196)	$4,781
Unrealized gains (losses) from equity instruments measured at fair value through other comprehensive income	227,156	-	227,156	-	227,156
Total of other comprehensive income	$233,133	$ -	$233,133	$ (1,196)	$231,937

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(21) Income taxes

A. Income taxes expense relate to the following:

Income tax expense (benefit) recognized in profit or loss

	For the years ended 31 December
	2025	2024
Current income tax expense:
Current income tax charge	$ -	$ -
Deferred tax (benefit) expense
Deferred tax income relating to origination and reversal of temporary differences	29,626	46,007
Current income tax expense	$29,626	$46,007

Income tax relating to components of other comprehensive income

	For the years ended 31 December
	2025	2024
Deferred tax (benefit) expense
Actuarial gain and loss of the defined benefit	$672	$1,196
Income tax relating to components of other comprehensive income	$672	$1,196

B. A reconciliation between tax expense and the product of accounting profit multiplied by applicable tax rates is as follows:

	For the years ended 31 December
	2025	2024
Accounting loss before tax from continuing operations	$(83,596)	$(152,594)
At statutory income tax rate	$(16,719)	$(30,519)
Expenses not deductible for tax purposes	(4)	158
Income exempt from taxation	(1,092)	(1,526)
Unrecognized tax credit/ Deductible temporary difference	47,441	77,894
Total income tax expense recognized in profit or loss	$29,626	$46,007

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

C. Deferred tax assets (liabilities) relate to the following:

For the years ended 31 December 2025

Items	Beginning balance	Recognized in profit or loss	Recognized in other comprehensive income	Ending balance
Temporary differences
Allowance loss from price reduction of inventories	$35,850	$(35,850)	$ -	$ -
Allowance for doubtful debts	1,215	(1,215)	-	-
Unrealized loss on foreign exchange loss	(42)	42	-	-
Leave payable	1,921	(1,921)	-	-
Land value increment tax preparation	(55,299)	-	-	(55,299)
Defined Benefit Retirement Plan	(8,646)	9,318	(672)	-
Deferred tax income/(expense)		$(29,626)	$(672)
Deferred tax assets/(liabilities), net	$(25,001)			$(55,299)
The information presented on the balance sheet is as follows:
Deferred tax assets	$38,986			$ -
Deferred tax liabilities	$(63,987)			$(55,299)

For the years ended 31 December 2024

Items	Beginning balance	Recognized in profit or loss	Recognized in other comprehensive income	Ending Balance
Temporary differences
Allowance loss from price reduction of inventories	$19,256	$16,592	$ -	$35,850
Allowance for doubtful debts	63	1,152	-	1,215
Unrealized loss on foreign exchange loss	(1,568)	1,526	-	(42)
Leave payable	2,069	(148)	-	1,921
Accumulated losses	63,694	(63,694)	-	-
Land value increment tax preparation	(55,299)	-	-	(55,299)
Defined Benefit Retirement Plan	(6,015)	(1,435)	(1,196)	(8,646)
Deferred tax income/(expense)		$(46,006)	$(1,196)
Deferred tax assets/(liabilities), net	$22,200			$(25,001)
The information presented on the balance sheet is as follows:
Deferred tax assets	$85,082			$38,986
Deferred tax liabilities	$(62,882)			$(63,987)

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

D. Information on unused tax losses of individuals within the Company is summarized as follows:

Year of occurrence	Deficit amount	Unused balance		Last deductible year
		31 December 2025	31 December 2024
2017	$5,526	$5,526	$5,567	2027
2018	58,992	58,992	58,992	2028
2019	59,271	59,271	59,271	2029
2020	134,320	134,320	134,320	2030
2021	72,084	72,084	58,906	2031
2023	25,460	25,460	25,460	2033
2024	62,512	62,512	62,512	2034
2025	158,748	158,748	-	2035
Total	$576,913	$576,913	$405,028

E. Unrecognized deferred tax assets

As of 31 December 2025 and 2024, the Company conservatively estimates that the losses will be deducted from taxable income in future years when such taxable income is generated. Furthermore, the total amount of deferred income tax assets that the Company did not recognize is NT$153,655 and NT$84,643 respectively.

F. The assessment of income tax returns

As of 31 December 2025, the Company's income tax filing has been finalized up to the year ended 31 December 2023.

(22) Earnings per share

Basic earnings per share amounts are calculated by dividing net profit (loss) for the year attributable to ordinary equity holders of the parent entity by the weighted average number of ordinary shares outstanding during the year.

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Diluted earnings per share amounts are calculated by dividing the net profit (loss) attributable to ordinary equity holders of the parent entity by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.

	For the years ended 31 December
	2025	2024
(a) Basic earnings per share
Loss attributable to ordinary equity holders of the Company(in thousand)	$(113,222)	$(198,601)
Weighted average number of ordinary shares outstanding for basic earnings per share (in thousand)	130,666	130,666
Earnings per share – basic(in dollar)	$(0.87)	$(1.52)
	For the years ended 31 December
	2025	2024
(b) Diluted earnings per share
Loss attributable to ordinary equity holders of the Company(in thousand)	$(113,222)	$(198,601)
Weighted average number of ordinary shares outstanding for basic earnings per share (in thousand)	130,666	130,666
The impact of potential common shares with dilutive effects:
Employee compensation expenses	-	-
Weighted average number of ordinary shares outstanding after dilution (in thousand)	130,666	130,666
Diluted earnings per share (in dollar)	$(0.87)	$(1.52)

There have been no other transactions involving ordinary shares or potential ordinary shares between the reporting date and the date of completion of the financial statements.

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Related party transactions

Information of related parties that had transactions with the Company during the financial reporting periods is as follows:

Name and nature of relationship of the related parties

Name of Related Party	Relationship with the Company
TAIWAN TAFFETA FABRIC CO., LTD.	Affiliated enterprise (Directly or indirectly hold more than 20% of the shares)
LIANG-WOEI FIBRE CO., LTD.	Substantive related party (President of the company is the natural person representative of the Company's legal person directors)
HONG JEN TEXTILE CO., LTD.	Substantive related party (Directors of the company are natural person representatives of the Company's legal person directors)
MEGA MASTER TECHNOLOGY CO., LTD.	Substantive related party (Directors of the company are natural person representatives of the Company's legal person directors)
GOLD RAIN ENTERPRISES CORP.	Substantive related party (Director of the company is the natural person representative appointed by the company's legal person directors)
CHAIN YARN CO., LTD	Substantive related party (Directors of the company are natural person Directors)
CHAIN YARN VIETNAM CO., LTD	Substantive related party (Directors of the company are natural person Directors)

Significant transactions with the related parties

(1)Sales

	For the years ended 31 December
	2025	2024
Sales of goods – affiliated enterprises	$11,283	$560
Sales of goods – other related parties	27,791	58,099
Rendering of services – other related parties	3,576	-
Total	$42,650	$58,659

The sales price to the above related parties was determined through mutual agreement based on the market rates. The outstanding balance as of 31 December 2025 and 2024 was unsecured, non-interest bearing and must be settled in cash. The receivables from the related parties were not guaranteed.

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(2) Purchases

	For the years ended 31 December
	2025	2025
Affiliated enterprises	$76,780	$1,893
Other related parties	708	5,352
Total	$77,488	$7,245

The purchase price from the above related parties was determined through mutual agreement based on the market rates. The payment terms from the related party suppliers are comparable with third party suppliers.

(3) Notes receivables and Account receivables

	As of 31 December
	2025	2024
Other related parties	$7,003	$1,049

(4) Accounts payable

	As of 31 December
	2025	2024
Other related parties	$12,977	$ -

(5) Key management personnel compensation

	For the years ended 31 December
	2025	2024
Short-term employee benefits	$8,836	$10,226

Assets pledged as security

The following table lists assets of the Company pledged as security:

	As of 31 December
	2025	2024	Guarantee purpose
Land (Note1)	$1,621,711	$45,102	Bank loan
Buildings and structures(Note2)	963,082	4,543	Bank loan
Total	$2,584,793	$49,645

Note1: Classified as property, plant and equipment and investment property.
Note2: Classified as property, plant and equipment, investment property and finance leases (net).

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Commitments and contingencies

None.

Losses due to major disasters

None.

Significant subsequent events

None.

Other

(1) Categories of financial instruments

Financial assets

	As of 31 December
	2025	2024
Financial assets at fair value through profit or loss:
Mandatorily measured at fair value through profit or loss	$116,702	$138,506
Financial assets at fair value through other comprehensive income
Equity instrument investment	453,317	538,345
Financial assets measured at amortized cost:
Cash and cash equivalents (excluding inventory of Cash)	256,849	304,477
Notes and accounts receivable (including related party)	72,439	-
Other receivables (excluding income tax refund receivables)	421	314
lease receivables (including non- current portion)	863,398	-
Refundable deposits	23	23
Subtotal	$1,193,130	$430,542
Total	$1,763,149	$1,107,393

Financial liabilities

	As of 31 December
	2025	2024
Financial liabilities at amortized cost:
Short-term loans	$190,000	$120,000
Notes and accounts payable	54,366	49,619
Other payables	85,716	75,257
Leases liabilities	2,766	3,582
Long-term loans	1,890,000	-
Guarantee deposits received	1,390	620
Total	$2,224,238	$249,078

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(2) Financial risk management objectives and policies

The Company’s principal financial risk management objective is to manage the market risk, credit risk and liquidity risk related to its operating activities. The Company identifies measures and manages the aforementioned risks based on the Company’s policy and risk appetite.

The Company has established appropriate policies, procedures and internal controls for financial risk management. Before entering into significant transactions, due approval process by the Board of Directors and Audit Committee must be carried out based on related protocols and internal control procedures. The Company complies with its financial risk management policies at all times.

(3) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of the changes in market prices. Market prices comprise currency risk, interest rate risk and other price risk.

In practice, it is rarely the case that a single risk variable will change independently from other risk variable, there is usually interdependencies between risk variables. However, the sensitivity analysis disclosed below does not take into account the interdependencies between risk variables.

Foreign currency risk

The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities (when revenue or expense are denominated in a different currency from the Company’s functional currency).

The Company has certain foreign currency receivables to be denominated in the same foreign currency with certain foreign currency payables, therefore natural hedge is received. Hedge accounting is not applied as they did not qualify for hedge accounting criteria.

The foreign currency sensitivity analysis of the possible change in foreign exchange rates on the Company’s profit is performed on significant monetary items denominated in foreign currencies as of the end of the reporting period. The Company's currency risk is primarily affected by fluctuations in the exchange rates of the USD and the RMB. Sensitivity analysis information is as follows:

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

When the NT dollar appreciates/depreciates by 5% against the U.S. dollar, it will affect the Company for the years ended 31 December 2025 and 2024. The annual pre-tax profit and loss will decrease/increase by NT$49,557 and NT$4,340 respectively.

Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s debt instrument investments at variable interest rates, bank borrowings with fixed interest rates and variable interest rates.

The interest rate sensitivity analysis is performed on items exposed to interest rate risk as at the end of the reporting period, including investments and borrowings with variable interest rates and interest rate swaps. At the reporting date, a change of 10 basis points of interest rate in a reporting period could cause the profit. The profit and loss of the Company for the years ended 31 December 2025 and 2024 will be reduced/increased NT$2,080 and NT$120 respectively.

(4) Credit risk management

Credit risk is the risk that a counterparty default obligations under a contract, leading to a financial loss to the Company.

The credit risk of the Company is assessed on contracts whose fair value is a positive number on the balance sheet date. The Company only transacts with counterparties, which are financial institutions, companies with good credit rating. Consequently, there is no significant credit risk for these counter parties.

(5) Liquidity risk management

The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of cash and cash equivalents, bank borrowings, and finance leases. The table below summarizes the maturity profile of the Company’s financial liabilities based on the contractual undiscounted payments and contractual maturity. The payment amount includes the contractual interest. The undiscounted payment relating to borrowings with variable interest rates is extrapolated based on the estimated interest rate yield curve as of the end of the reporting period.

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Non-derivative financial liabilities

	Less than 1 year	1 to 3 years	3 to 5 years	> 5 years	Total
31 December 2025
Short-term loans	$190,162	$ -	$ -	$ -	$190,162
Long-term loans	888	187,077	285,797	1,842,258	2,316,020
Notes and accounts payable	54,366	-	-	-	54,366
Leases liabilities	1,808	958	-	-	2,766
31 December 2024
Short-term loans	$120,063	$ -	$ -	$ -	$120,063
Notes and accounts payable	49,619	-	-	-	49,619
Leases liabilities	1,533	2,049	-	-	3,582

(6) Reconciliation of liabilities arising from financing activities

Reconciliation of liabilities for the years ended 31 December 2025:

	Short-term loans	Long-term loans	Leases liabilities	Total liabilities from financing activities
As of 1 January 2025	$120,000	$ -	$3,582	$123,582
Cash flows	70,000	1,890,000	(1,840)	1,958,160
Non-cash change	-	-	1,024	1,024
As of 31 December 2025	$190,000	$1,890,000	$2,766	$2,082,766

Reconciliation of liabilities for the years ended 31 December 2024:

	Short-term loans	Long-term loans	Leases liabilities	Total liabilities from financing activities
As of 1 January 2024	$ -	$ -	$469	$469
Cash flows	120,000	-	(1,308)	118,692
Non-cash change	-	-	4,421	4,421
As of 31 December 2024	$120,000	$ -	$3,582	$123,582

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(7) Fair values of financial instruments

A. The methods and assumptions applied in determining the fair value of financial instruments:

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and assumptions were used by the Company to measure or disclose the fair values of financial assets and financial liabilities:

(a) The carrying amount of cash and cash equivalents, accounts receivables, accounts payable and other current liabilities approximate their fair value due to their short maturities.

(b) For financial assets and liabilities traded in an active market with standard terms and conditions, their fair value is determined based on market quotation price (including listed equity securities, beneficiary certificates, bonds and futures etc.) at the reporting date.

(c) Fair value of debt instruments without market quotations, bank loans, bonds payable and other non-current liabilities are determined based on the counterparty prices or valuation method. The valuation method uses DCF method as a basis, and the assumptions such as the interest rate and discount rate are primarily based on relevant information of similar instrument (such as yield curves published by the Taipei Exchange, average prices for Fixed Rate Commercial Paper published by Reuters and credit risk, etc.)

B. Fair value of financial instruments measured at amortized cost

The carrying amount of the Company's financial assets and liabilities measured at amortized cost approximate their fair value.

C. Please refer to Note 12(8)(b) for fair value measurement hierarchy for financial instruments of the Company.

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(8) Fair value measurement hierarchy

A. Definition of fair value measurement hierarchy

All asset and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, based on the lowest level input that is significant to the fair value measurement as a whole. Each level inputs are described as follows:

Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities that the entity can access at the measurement date

Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly

Level 3 – Unobservable inputs for the asset or liability

For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether transfers have occurred between Levels in the hierarchy by re-assessing categorization at the end of each reporting period.

B. Fair value measurement hierarchy of the Company’s assets and liabilities

The Company does not have assets that are measured at fair value on a non-recurring basis. Fair value measurement hierarchy of the Company’s assets and liabilities measured at fair value on a recurring basis was as follows:

As of 31 December 2025

	Level 1	Level 2	Level 3	Total
Fair value measurement hierarchy of the Company’s assets:
Financial assets measured at fair value through other comprehensive income
Equity instrument investment
Domestic listed stocks- private placement	$ -	$ -	$436,705	$436,705
Domestic listed ordinary share	16,327	-	-	16,327
Domestic unlisted preference share	-	-	285	285
Financial assets measured at fair value through profit or loss
Equity instrument investment
Domestic listed stocks	36,660	-	-	36,660
Funds	80,042	-	-	80,042
Total	$133,029	$ -	$436,990	$570,019

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

As of 31 December 2024

	Level 1	Level 2	Level 3	Total
Fair value measurement hierarchy of the Company’s assets:
Financial assets measured at fair value through other comprehensive income
Equity instrument investment
Domestic listed stocks- private placement	$ -	$ -	$538,050	$538,050
Domestic unlisted preference share	-	-	295	295
Financial assets measured at fair value through profit or loss
Equity instrument investment
Domestic listed stocks	50,543	-	-	50,543
Funds	87,963	-	-	87,963
Total	$138,506	$ -	$538,345	$676,851

Transfers between Level 1 and Level 2 during the period

During the years ended 31 December 2025 and 2024, there were no transfers between Level 1 and Level 2 fair value measurements.

Details of Changes in Level 3 Fair Value Measurements for Recurring Fair Value Measurements

Reconciliation for Recurring fair value measurements in Level 3 of the fair value hierarchy for movements during the period is as follows:

	At fair value through other comprehensive income
	Stocks
Beginning balances as of 1 January 2025	$538,345
Recognized in other comprehensive income	(85,018)
Disposal as of 31 December 2025	(10)
Ending balances as of 31 December 2025	$453,317

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

	At fair value through other comprehensive income
	Stocks
Beginning balances as of 1 January 2024	$295
Acquisition as of 30 September 2024	216,250
Recognized in other comprehensive income	321,800
Ending balances as of 31 December 2024	$538,345

C. Fair value measurement hierarchy of the Company's assets and liabilities not measured at fair value but for which the fair value is disclosed

As of 31 December 2025

	Level 1	Level 2	Level 3	Total
Financial assets not measured at fair value but for which the fair value is disclosed:
Investments accounted for using the equity method (Note 6(6))	$387,744	$ -	$ -	$387,744
Investment properties (Note 6(8))	-	-	1,509,319	1,509,319
As of 31 December 2024	Level 1	Level 2	Level 3	Total
Financial assets not measured at fair value but for which the fair value is disclosed:
Investments accounted for using the equity method (Note 6(6))	$442,712	$ -	$ -	$442,712

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(9) Significant assets and liabilities denominated in foreign currencies

Information regarding the significant assets and liabilities denominated in foreign currencies is listed below:

	As of 31 December 2025			(Unit: expressed in thousands) As of 31 December 2024
	Foreign currencies	Foreign exchange rate	NTD	Foreign currencies	Foreign exchange rate	NTD
Financial assets
Monetary items:
USD	$31,831	31.43	$1,000,448	$2,984	32.79	$97,845
EUR	4	36.90	148	44	34.14	1,502
JPY	18,973	0.2008	3,810	20,366	0.2099	4,275
Financial liabilities
Monetary items:
USD	296	31.43	9,303	$336	32.79	$11,016

The above information is disclosed based on the carrying amount of foreign currency (after conversion to functional currency).

The Company has a number of different functional currencies; therefore, we are unable to disclose the exchange loss and gain of monetary financial assets and financial liabilities under each foreign currency that has significant impact. The Company recognized NT$29,763 foreign exchange gain and NT$17,764 foreign exchange gain for the years ended 31 December 2025 and 2024, respectively.

(10) Capital management

The primary objective of the Company's capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximize shareholder value. The Company manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To maintain or adjust the capital structure, the Company may adjust dividend payment to shareholders, return capital to shareholders or issue new shares.

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Other disclosure

(1) Information at significant transactions

A. Financing provided to others for the years ended 31 December 2025 and 2024: None
B. Endorsement/Guarantee provided to others for the years ended 31 December 2025 and 2024: None
C. Significant securities held as of 31 December 2025:

Holding Company	Types of Securities	Relations hip with Securities Issuers	Financial Statement Account	As of 31 December 2025
				Shares/Unit	Carrying amount	Share holding ratio	Fair value	Remark
UNIVERSAL TEXTILE CO., LTD	JIIN MING INDUSTRY CO., LTD.	—	Financial assets at fair value through other comprehensive income, non-current	$12,500,000	$343,375	14.53%	$343,375
UNIVERSAL TEXTILE CO., LTD	GOLD RAIN ENTERPRISES CORP.	Other related parties	Financial assets at fair value through other comprehensive income, non-current	3,407,157	109,657	4.35%	109,657	Note
UNIVERSAL TEXTILE CO., LTD	PineBridge Preferred Securities Income Fund	—	Financial assets at fair value through profit or loss, current	12,000,400	80,042	-%	80,042
UNIVERSAL TEXTILE CO., LTD	HIGHWEALTH CONSTRUCTION CORP.	—	Financial assets mandatorily measured at fair value through profit or loss- current	462,000	$18,572	0.02%	$18,572
UNIVERSAL TEXTILE CO., LTD.	CHING FENG HOME FASHIONS CO., LTD	-	Financial assets mandatorily measured at fair value through profit or loss- current	100,000	$2,005	0.06%	$2,005
UNIVERSAL TEXTILE CO., LTD.	NWE ASIA CONSTRUCTION & DEVELOPMENT CORP.	-	Financial assets mandatorily measured at fair value through profit or loss- current	1,083,000	16,083	0.48%	16,083

Note: Please refer to Note 7 for further information.

UNIVERSAL TEXTILE CO., LTD.
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS (Continued)
(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

D. Related party transactions for purchases and sales amounts exceeding the lower of NT$100 million or 20 percent of the paid-in capital for the year ended 31 December 2025: None.

E. Receivables from related parties with amounts exceeding the lower of NT$100 million or 20 percent of the paid-in capital as of 31 December 2025: None.

F. Other: The business relationship, significant transactions and amounts between parent company and subsidiaries, and among subsidiaries (with amounts exceeding the lower of NT$100 million or 20 percent of the paid-in capital): None.

(2) Information on investees

A. Invested companies with significant influence or control:

Names, locations, main businesses and products, original investment amount, investment as of 31 December 2025, net income (loss) of investee company and investment income (loss) recognized as of 31 December 2025 (excluding investments in mainland China):

Investor	Investee company	Address	Main business and products	Initial Investment		Investment as of 31 December 2025			Net income(loss) of investee company (Note 1)	Investment income (loss) recognized (Note1)	Remark
				Ending balance	Beginning balance	Number of shares	Percentage of ownership (%)	Carrying amount
UNIVERSAL TEXTILE CO., LTD	CHANG FU INVEST-MENT CO., LTD.	7th Floor, No. 62-5, Xining North Road, Datong District, Taipei City	Holding company	$30,000	$30,000	3,000,000	100%	$42,765	$(1,869)	$(1,869)	Subsidiaries
UNIVERSAL TEXTILE CO., LTD	HUNG YU TECHNO-LOGY CO., LTD.	7th Floor, No. 62-5, Xining North Road, Datong District, Taipei City	Wholesale of chemical raw materials	30,000	30,000	3,000,000	100%	31,311	1,132	1,132	Subsidiaries
UNIVERSAL TEXTILE CO., LTD	TAIWAN TAFFETA FABRIC CO., LTD.	8th., No. 70-1, Xining North Road., Datong Dist., Taipei City	Production of polyester-cotton blended yarn (thread)	240,632	240,632	29,712,218	22.88%	503,867	(136,994)	(29,994)	Affiliated enterprise

Note1: Consolidation

(3) Information on investments in mainland China :

None.

UNIVERSAL TEXTILE CO., LTD
THE CONTENTS OF STATEMENTS OF MAJOR ACCOUNTING ITEMS
For the year ended 31 December 2025

Item	INDEX
STATEMENT OF CASH AND CASH EQUIVALENTS	1
STATEMENT OF ACCOUNTS AND NOTES RECEIVABLE	2
STATEMENT OF INVENTORIES	Note 6.5
FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS - CURRENT	3
STATEMENT OF FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME, NONCURRENT	4
STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR UNDER THE EQUITY METHOD	5
STATEMENT OF CHANGES IN PROPERTY, PLANT AND EQUIPMENT	Note 6.7
STATEMENT OF CHANGES IN ACCUMULATED DEPRECIATION OF PROPERTY, PLANT AND EQUIPMENT	Note 6.7
STATEMENT OF CHANGES IN RIGHT-OF-USE ASSET	6
STATEMENT OF CHANGES IN ACCUMULATED DEPRECIATION OF RIGHT-OF-USE ASSET	6
STATEMENT OF ACCOUNTS AND NOTES PAYABLE	7
STATEMENT OF OTHER PAYABLES	Note 6.10
STATEMENT OF OPERATING REVENUES	8
STATEMENT OF OPERATING COSTS	9
STATEMENT OF MANUFACTURING EXPENSES	10
STATEMENT OF OPERATING EXPENSES	11
STATEMENT OF NON-OPERATING INCOME AND EXPENSES	Note 6.19
SUMMARY STATEMENT OF EMPLOYEE BENEFITS, DEPRECIATION AND AMORTIZATION EXPENSES BY FUNCTION	Note 6.18

UNIVERSAL TEXTILE CO., LTD
1. STATEMENT OF CASH AND CASH EQUIVALENTS
As of 31 December 2025

(Unit: expressed in thousands of New Taiwan Dollars)

Items	Description	Amount	Note
Inventory of cash		$150
Cash in banks
Current deposit - TWD		256,849
Total		$256,999

UNIVERSAL TEXTILE CO., LTD
2. STATEMENT OF ACCOUNTS AND NOTES RECEIVABLE
As of 31 December 2025

(Unit: expressed in thousands of New Taiwan Dollars)

Client Name	Description	Amount
Client A	Non-related Party	$7,895
Client B	Non-related Party	7,349
Client C	Non-related Party	7,056
Client D	Non-related Party	6,021
Client E	Non-related Party	5,565
Others (Note)		48,882
Total		$82,768
Less: allowance for doubtful debts		(10,329)
Net carrying amount		$72,439

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

UNIVERSAL TEXTILE CO., LTD

STATEMENT OF FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGHROFIT OR LOSS - CURRENT

For the Year Ended 31 December 2025

(Unit: expressed in thousands of New Taiwan Dollars)

Name of Securities	As of 1 January 2025		Additions		Decrease		Adjustments	As of 31 December 2025		Accumulated impairment	Collateral
	Number of shares	Fair value	Number of shares	Amount	Number of shares	Amount		Number of shares	Fair value
HIGHWEALTH
CONSTRUCTION CORP.	440,000	$19,118	22,000	$ -	-	$ -	$(546)	462,000	$18,572	$ -	None
CHING FENG HOME
FASHIONS CO., LTD	100,000	2,885	-	-	-	-	(880)	100,000	2,005	-	None
NEW ASIA CONSTRUCTION & DEVELOPMENT CORP.	2,221,000	28,540	-	-	1,138,000	(15,367)	2,910	1,083,000	16,083	-	None
PINEBRIDGE PREFERRED
SECURITIES	12,000,400	87,963	-	-	-	-	(7,921)	12,000,400	80,042	-	None
Total		$138,506		$ -		$(15,367)	$(6,437)		$116,702	$ -

UNIVERSAL TEXTILE CO., LTD
4. STATEMENT OF FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME, NON-CURRENT
For the Year Ended 31 December 2025

(Unit: expressed in thousands of New Taiwan Dollars)

Name of Securities	As of 1 January 2025		Additions		Decrease		Adjustments	As of 31 December 2025		Accumulated impairment	Collateral
	Number of shares	Fair value	Number of shares	Amount	Number of shares	Amount		Number of shares	Fair value
JIIN MING INDUSTRY CO., LTD.	12,500,000	428,250	-	$ -	-	-	$(84,875)	12,500,000	$343,375	$ -	None
GOLD RAIN ENTERPRISES CORP.	3,000,000	109,800	407,157	15,268	-	-	(15,411)	3,407,157	109,657	-	None
TAIWAN FILAMENT WEAVING DEVELOPMENT CO., LTD.	1,613,844	-	-	-	-	-	-	1,613,844	-	(8,790)	None
Ordinary share
TAIWAN FILAMENT WEAVING DEVELOPMENT CO., LTD.	29,505	295	-	-	983	(10)	-	28,522	285	-	None
Preference share		$538,345		15,268		$(10)	$(100,286)		$453,317	$(8,790)
Total

UNIVERSAL TEXTILE CO., LTD
5. STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR UNDER THE EQUITY METHOD
For the Year Ended 31 December 2025

(Unit: expressed in thousands of New Taiwan Dollars)

Name of Securities	Balance as of 1 January 2025		Additions		Decrease		Investment income (loss) recognized	Balance as of 31 December 2025			Net Equity	Collateral
	Number of shares	Amount	Number of shares	Amount	Number of shares	Amount		Number of shares	Percentage of ownership (%)	Amount
CHANG FU INVESTMENT CO., LTD.	3,000,000	$44,429	-	$205 (Note1)	-	$ -	$(1,869)	3,000,000	100%	$42,765	$42,765	None
HUNG YU TECHNOLOGY CO., LTD.	3,000,000	30,179	-	-	-	-	1,132	3,000,000	100%	31,311	31,311	None
TAIWAN TAFFETA FABRIC CO., LTD.	29,712,218	544,322		-	-	(10,511) (Note2)	(29,944)	29,712,218	22.88%	503,867	315,167	None
Total		$618,930		$205		$(10,511)	$(30,681)			$577,943	$398,243

Note 1: The series recognizes the changes in the fair value of financial assets measured at fair value through other comprehensive profit or loss.
Note 2: The series includes the changes in the fair value of financial assets measured at fair value through other comprehensive profit or loss of $(3,083), and the cash dividend of $7,428 distributed by the company.

UNIVERSAL TEXTILE CO., LTD
6. STATEMENT OF CHANGES IN RIGHT-OF-USE ASSET
As of 31 December 2025
(Unit: expressed in thousands of New Taiwan Dollars)

Items	Balance as of 1 January 2025	Additions	Decrease	Other changes	Balance as of 31 December 2025
Cost
Transportation equipment	$5,054	$948	$(633)	$ -	$5,369
Total	$5,054	$948	$(633)	$ -	$5,369
Accumulated Depreciation
Transportation equipment	$1,495	$1,781	$(633)	$ -	$2,643
Total	$1,495	$1,781	$(633)	$ -	$2,643

UNIVERSAL TEXTILE CO., LTD
7. STATEMENT OF ACCOUNTS AND NOTES PAYABLES
As of 31 December 2025

(Unit: expressed in thousands of New Taiwan Dollars)

Client Name	Description	Amount
Client A	Non-related Party	$20,065
Client B	related Party	12,977
Client C	Non-related Party	5,538
Client D	Non-related Party	4,608
Client E	Non-related Party	4,509
Others (Note)		6,669
Total		$54,366

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

UNIVERSAL TEXTILE CO., LTD
8. STATEMENT OF OPERATING REVENUES
For the Year Ended 31 December 2025

(Unit: expressed in thousands of New Taiwan Dollars)

Items	Shipments (Piece)	Amount
Filament Fabric
Export	9,924	$469,539
Domestic sales	1,524	49,412
Sell Raw Materials	1	26
Processed Yarn
Domestic sales	3,777	190,023
Others		63,918
Subtotal		772,918
Sales Return- Filament Fabric		(1,634)
Sales Return- Processed Yarn		(215)
Sales Discounts And Allowances		(977)
Total		$770,092

Note: The unit of quantity for filament fabric is thousand yards, and the unit of quantity for processed yarn is metric ton.

UNIVERSAL TEXTILE CO., LTD
9. STATEMENT OF OPERATING COSTS
For the Year Ended 31 December 2025

Items	Amount	Note
Direct material
Raw material, beginning of year	$92,010
Raw material purchased	279,439
Raw material, end of year	(89,530)
Direct labor	65,036
Manufacturing expenses	291,358
Manufacturing cost	638,313
Work in process, beginning of year	114,694
Work in process, end of year	(114,150)
Cost of finished goods	638,857
Finished goods, beginning of year	236,243
Finished goods, end of year	(133,629)
Adjusted - Research and development cloth	15,612
Subtotal	757,083
Gain from price recovery of inventories	(73,992)
Total	$683,091

UNIVERSAL TEXTILE CO., LTD
10. STATEMENT OF MANUFACTURING EXPENSES
For the Year Ended 31 December 2025
(Unit: expressed in thousands of New Taiwan Dollars)

Items	Amount
Indirect labor	$29,431
Insurance expense	13,287
Utilities expense	52,182
Depreciation	32,803
Dyeing and finishing expense	97,609
Others (Note)	66,046
Total	$291,358

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

UNIVERSAL TEXTILE CO., LTD
11. STATEMENT OF OPERATING EXPENSES
For the Year Ended 31 December 2025
(Unit: expressed in thousands of New Taiwan Dollars)

Items	Sales and marketing expenses	General and administrative expenses	Research and development expenses	Expected Credit Losses	Total
Payroll expense	$31,752	$43,948	$6,395	$ -	$82,095
Freight expense	19,260	-	-	-	19,260
Commission	16,922	-	-	-	16,922
Professional service expense	500	5,630	-	-	6,130
Depreciation	934	4,133	844	-	5,911
Insurance expense	2,731	2,201	779	-	5,711
Export expense	4,934	-	-	-	4,934
Research expense	-	-	4,008	-	4,008
Directors and supervisors expense	-	3,256	-	-	3,256
Others (Note)	17,059	11,272	1,458	2,942	32,731
Total	$94,092	$70,440	$13,484	$2,942	$180,958

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

AI assistant

UNIVERSAL Audit Report / Information 2025

51808_rns_2026-05-13_37fa03d0-9f96-4d4d-a8b0-cb02b630fe6d.pdf

Revenue Recognition

Other Matter – Making Reference to the Audit(s) of Other Auditors

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

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

Notice to Readers

Financial assets at fair value through profit or loss

Financial liabilities at fair value through profit or loss

Financial liabilities at amortized cost

Derecognition of financial liabilities

E. Offsetting of financial instruments

(7) Fair value measurement

Company as a lessee

Company as a lessor

Lease income

(15) Borrowing costs

(16) Government grants

(17) Post-employment benefits

Deferred tax

Defined benefits plan

B. The Company as a lessor

Interest rate risk

(4) Credit risk management

(5) Liquidity risk management

AI assistant

UNIVERSAL — Audit Report / Information 2025

51808_rns_2026-05-13_37fa03d0-9f96-4d4d-a8b0-cb02b630fe6d.pdf

Revenue Recognition

Other Matter – Making Reference to the Audit(s) of Other Auditors

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

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

Notice to Readers

Financial assets at fair value through profit or loss

Financial liabilities at fair value through profit or loss

Financial liabilities at amortized cost

Derecognition of financial liabilities

E. Offsetting of financial instruments

(7) Fair value measurement

Company as a lessee

Company as a lessor

Lease income

(15) Borrowing costs

(16) Government grants

(17) Post-employment benefits

Deferred tax

Defined benefits plan

B. The Company as a lessor

Interest rate risk

(4) Credit risk management

(5) Liquidity risk management

More from UNIVERSAL

UNIVERSAL Audit Report / Information 2025