UPC — Annual Report 2024

Nov 12, 2024

Stock Code: 1313

UPC Technology Corporation and Subsidiaries

Consolidated Financial Statements and Independent Auditors' Report For the Years Ended December 31, 2024 and 2023

Address: 9F, Building A, No. 209, Section 1, Nangang Road, Nangang District, Taipei City TEL: (02)2651-7889

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§Table of Contents§

Item I. Cover II. Table of Contents III. Representation Letter IV. Independent Auditor's Report V. Consolidated Balance Sheet VI. Consolidated Statement of Comprehensive Income VII. Consolidated Statement of Changes in Equity VIII. Consolidated Cash Flow Statement IX. Notes to Consolidated Financial Statements (I) General (II) Date and Procedures for Approval of Financial Statements (III) Application of New and Revised International Financial Reporting Standards (IV) Summary of Significant Accounting Policies (V) Major Sources of Critical Accounting Judgments, Estimates, and Assumptions Uncertainty (VI) Summary of Significant Accounting Items (VII) Related Party Transactions (VIII) Pledged Assets (IX) Significant Contingent Liabilities and Unrecognized Commitments (X) Other Matters (XI) Additional Disclosures 1. Information on significant transactions 2. Information on investees 3. Information on investment in mainland China 4. Information on major shareholders (XII) Segment Information	Page 1 2 3 4~7 8 9~10 11 12~14 15 15 15~17 18~33 33 34~71 70~74 74 74 74~76 76, 80~91 76, 93 77, 93~94 77, 95 78~79	Financial Statement Note Number
		- - - - - - - I II III IV V VI- XXXI XXXII XXXIII XXXIV XXXV-XXXVI XXXVII XXXVII XXXVII XXXVII XXXVIII

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Representation Letter

Considering that the companies to be included into the consolidated financial statements of affiliates under the Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises were the same as those to be included into the consolidated financial statements of the parent and subsidiaries under IFRS 10 for 2024 (from January 1, 2024 to December 31, 2024), and the relevant information to be disclosed in the consolidated financial statements of the affiliates has already been disclosed in the said consolidated financial statements of the parent and subsidiaries, no consolidated financial statements of affiliates were prepared separately.

Very truly yours,

UPC Technology Corporation

Chairman: Miau, Matthew Feng Chiang

March 7, 2025

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Independent Auditor's Report

The Board of Directors and Stockholders

UPC Technology Corporation,

Opinion

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

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2024 and 2023, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission (FSC) of 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 Consolidated Financial Statements section of our report. We are independent of the Group in accordance with The Norm of Professional Ethics for Certified Public Accountants of the Republic of China. We have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

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

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Key audit matters for the Group’s consolidated financial statements for the year ended December 31, 2024 is described as follows:

Recognition of Operating Revenue

The main revenue of the Group comes from the sales of plasticizers. Considering that the recognition of revenue had a significant impact on the financial statements, the authenticity of sales revenue from customers with substantial growth and amount was identified as a key audit matter for the current year. In response to the aforementioned key audit matter, we performed audit procedures as follows: We assessed the related internal controls, checked the transaction records and supporting documents to ensure the occurrence of the transactions and confirmed that the recognition of revenue was in compliance with IFRS. For the accounting policies on revenue recognition, please refer to Note 4 (13) of the consolidated financial statements.

Other Matters

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

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

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

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

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

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on

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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 consolidated 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:

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

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

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

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

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

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

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements for the year ended December 31, 2024, and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audits resulting in this independent auditors’ report are ChienLiang Liu and Wen-Chin Lin.

Deloitte & Touche

Taipei, Taiwan Republic of China March 7, 2025

Notice to Readers

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

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

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UPC Technology Corporation and Subsidiaries

Consolidated Balance Sheet

December 31, 2024 and 2023

In Thousands of New Taiwan Dollars

Code 1100 1110 1120 1136 1150 1170 1200 1210 1220 130X 1479 11XX 1517 1550 1600 1755 1801 1840 1990 15XX 1XXX Code 2100 2150 2170 2219 2230 2250 2280 2320 2399 21XX 2530 2540 2550 2570 2580 2630 2640 2645 25XX 2XXX 3110 3140 3100 3200 3310 3320 3350 3300 3400 3500 3XXX	Assets Current assets Cash and cash equivalents (Note 6) Financial assets at FVTPL (Note 7) Financial assets at FVTOCI (Note 8) Financial assets at amortized cost (Note 9 and 33) Notes receivable (Note 10 and 17) Trade receivables (Note 10) Other receivables (Note 10) Other receivables from related parties (Note 32) Current tax assets (Note 26) Inventories (Note 11) Other current assets (Note 16) Total current assets Non-current assets Financial assets at FVTOCI (Note 8) Investments accounted for using the equity method (Note 13) Property, plant and equipment (Note 14) Right-of-use assets (Note 15) Computer software Deferred income tax assets (Note 26) Other non-current assets (Note 16 and 32) Total non-current assets Total assets Liabilities and Equity Current liabilities Short-term borrowings (Note 17) Notes payable (Note 19) Trade payables (Note 19 and 32) Other payables (Note 20) Current tax liabilities (Note 26) Provisions (Note 21) Lease liabilities (Note 15) Current portion of long-term liabilities (Notes 17 and 18) Other current liabilities (Note 20) Total current liabilities Non-current liabilities Bonds payable (Note 18) Long-term borrowings (Note 17 and 34) Provisions (Note 21) Deferred income tax liabilities (Note 26) Lease liabilities (Note 15) Long-term deferred revenue (Note 29) Net defined benefit liabilities (Note 22) Guarantee deposits received (Note 32) Total non-current liabilities Total liabilities Equity (Note 23) Share capital Ordinary shares Capital collected in advance Total share capital Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings (accumulated deficit) Total retained earnings Other equity Treasury shares Total equity Total liabilities and equity		December 31,2024	December 31,2024	% 9 - 2 - 2 7 - - - 14 3 37 28 - 28 3 - 4 - 63 100 10 1 3 2 - - - - 1 17 5 25 - 1 - - - - 31 48 24 - 24 3 5 1 2) 4 22 1) 52 100		December 31,2023	December 31,2023
			Amount $ 4,862,588 - 1,080,489 138,475 1,082,739 3,863,333 286,606 2,303 33,699 7,933,041 1,552,516 20,835,789 16,274,404 23,564 15,953,808 1,520,521 17,889 2,099,206 345,724 36,235,116 $ 57,070,905 $ 5,517,537 403,333 2,092,005 987,109 80,186 188,774 13,337 - 635,827 9,918,108 2,997,382 14,038,572 16,006 267,686 21,502 139,917 192,232 13,811 17,687,108 27,605,216 13,677,186 1,751 13,678,937 1,373,465 2,838,651 341,773 948,533) 2,231,891 12,620,337 438,941) 29,465,689 $ 57,070,905				Amount $ 3,209,524 6,852 1,050,698 332,822 758,152 3,958,242 256,735 2,633 34,991 9,015,958 2,185,722 20,812,329 15,467,637 23,498 16,123,291 1,452,268 6,319 1,403,436 367,891 34,844,340 $ 55,656,669 $ 4,201,060 130,056 1,743,287 1,070,310 49,908 154,023 4,894 417,307 492,831 8,263,676 2,996,364 13,652,805 14,196 268,645 16,172 145,680 235,821 13,779 17,343,462 25,607,138 13,635,771 11,726 13,647,497 1,378,837 2,838,651 341,773 1,660,705 4,841,129 10,621,009 438,941) 30,049,531 $ 55,656,669		%
		( (		( (		(		(	6 - 2 1 1 7 - - - 16 4 37 28 - 29 3 - 2 1 63 100 8 - 3 2 - - - 1 1 15 5 25 - 1 - - - - 31 46 25 - 25 2 5 1 3 9 19 1) 54 100

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

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UPC Technology Corporation and Subsidiaries

Consolidated Statement of Comprehensive Income

For the Years Ended December 31, 2024 and 2023

In Thousands of New Taiwan Dollars, Except Losses Per Share

Code Operating revenue (Note 24) 4100 Sales 4800 Other operating revenue 4000 Total operating revenue Operating cost (Note 25) 5110 Cost of goods sold (Note 11 and 32) 5800 Other operating costs 5000 Total operating cost 5900 Gross profit (loss) Operating expenses (Note 25 and 32) 6100 Selling and marketing expenses 6200 General and administrative expenses 6450 Expected credit loss (gain) 6000 Total operating expenses 6900 Loss from operations Non-operating income and expenses 7060 Share of profit or loss of associates accounted for using the equity method (Note 13) 7100 Interest income (Note 25) 7190 Other income (Note 25 and 32) 7020 Other gains and losses (Note 25) 7050 Financial cost (Note 25) 7000 Total non-operating income and expenses		2024		% 100 - 100 100 - 100 - 2 2 - 4 4) - - 1 - 1) -		2023
		Amount $ 73,056,122 264,158 73,320,280 73,315,979 180,624 73,496,603 176,323) 1,376,758 1,119,955 2,821 2,499,534 2,675,857) 382 77,426 613,935 200,216 ) 529,247) 37,720)				Amount $ 72,928,555 267,491 73,196,046 70,816,050 172,589 70,988,639 2,207,407 1,374,302 1,034,603 3,987) 2,404,918 197,511) 691 53,319 608,684 219,784 ) 401,935) 40,975		%
	( ( ( ( (		( (		( ( ( (		(	100 - 100 97 - 97 3 2 1 - 3 - - - 1 - 1) -

(To be continued)

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(Continued from the previous page)

Code 7900 Loss before income tax 7950 Income tax (benefit) expense (Note 26) 8200 Net loss for the year Other comprehensive income (Note 23) 8310 Items that will not be reclassified subsequently to profit or loss: 8311 Remeasurement of defined benefit plans 8316 Unrealized gain (loss) on investments in equity instruments at FVTOCI. 8320 Share of the other comprehensive (loss) income of associates accounted for using the equity method (Note 13) 8349 Income tax relating to items that will not be reclassified subsequently to profit or loss (Note 26) 8360 Items that may be reclassified subsequently to profit or loss 8361 Exchange differences on translating the financial statements of foreign operations 8399 Income tax relating to items that may be reclassified subsequently to profit or loss (Note 26) 8300 Other comprehensive income of the year (net after taxes) 8500 Total comprehensive income (loss) for the year Loss per share (Note 27) 9710 Basic		2024		% 4 ) 1) 3) - 1 - - 1 2 - 2 3 -		2023
		Amount $ 2,713,577 ) 329,722) 2,383,855) 24,938 614,140 1,915 ) 4,990) 632,173 1,416,787 8,280) 1,408,507 2,040,680 $ 343,175) $ 1.79)				Amount $ 156,536 ) 126,290 282,826) 2,952 4,735,286 158 ) 590) 4,737,490 334,257 ) 40 334,217) 4,403,273 $ 4,120,447 $ 0.21)		%
	( ( ( ( ( ( ( (		( ( (		( ( ( ( ( ( (			- - - - 6 - - 6 - - - 6 6

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

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UPC Technology Corporation and Subsidiaries Consolidated Statement of Changes in Equity For the Years Ended December 31, 2024 and 2023

Code A1 Balance at January 1, 2023 Appropriation of 2022 earnings B5 Cash dividends C17 Unclaimed dividends of shareholders D1 Net loss in 2023 D3 Other comprehensive income (loss) in 2023, net of income tax D5 Total comprehensive income (loss) in 2023 G1 Issue of ordinary shares under employee share options H1 Advance share payments for issuing of ordinary shares under employee share options N1 Share-based payment transaction - employees share option plan Q1 Disposal of investments in equity instruments at FVTOCI Z1 Balance at December 31, 2023 Appropriation of 2023 earnings B5 Cash dividends C17 Unclaimed dividends of shareholders D1 Net loss in 2024 D3 Other comprehensive income (loss) in 2024, net of income tax D5 Total comprehensive income (loss) in 2024 G1 Issue of ordinary shares under employee share options H1 Advance share payments for issuing of ordinary shares under employee share options Q1 Disposal of investments in equity instruments at FVTOCI Z1 Balance at December 31, 2024		Share capital		Total $ 13,551,914 - - - - - 13,222 82,361 - - 13,647,497 - - - - - 6,212 25,228 - $ 13,678,937	Capital surplus $ 1,387,955 - 322 - - - ( 13,222 ) - 3,782 - 1,378,837 - 840 - - - ( 6,212 ) - - $ 1,373,465			Retained	earnings		Total $ 5,382,851 263,583 ) - 282,826 ) 2,362 280,464) - - - 2,325 4,841,129 265,511 ) - 2,383,855 ) 19,948 2,363,907) - - 20,180 $ 2,231,891			Other equity		In Thousands of New Taiwan Dollars Total Treasuryshares Total equity $ 6,222,423 ( $ 438,941 ) $ 26,106,202 - - ( 263,583 ) - - 322 - - ( 282,826 ) 4,400,911 - 4,403,273 4,400,911 - 4,120,447 - - - - - 82,361 - - 3,782 2,325) - - 10,621,009 ( 438,941 ) 30,049,531 - - ( 265,511 ) - - 840 - - ( 2,383,855 ) 2,020,732 - 2,040,680 2,020,732 - ( 343,175) - - - - - 25,228 21,404) - ( 1,224) $ 12,620,337 ($ 438,941) $ 29,465,689	In Thousands of New Taiwan Dollars Total Treasuryshares Total equity $ 6,222,423 ( $ 438,941 ) $ 26,106,202 - - ( 263,583 ) - - 322 - - ( 282,826 ) 4,400,911 - 4,403,273 4,400,911 - 4,120,447 - - - - - 82,361 - - 3,782 2,325) - - 10,621,009 ( 438,941 ) 30,049,531 - - ( 265,511 ) - - 840 - - ( 2,383,855 ) 2,020,732 - 2,040,680 2,020,732 - ( 343,175) - - - - - 25,228 21,404) - ( 1,224) $ 12,620,337 ($ 438,941) $ 29,465,689	In Thousands of New Taiwan Dollars Total Treasuryshares Total equity $ 6,222,423 ( $ 438,941 ) $ 26,106,202 - - ( 263,583 ) - - 322 - - ( 282,826 ) 4,400,911 - 4,403,273 4,400,911 - 4,120,447 - - - - - 82,361 - - 3,782 2,325) - - 10,621,009 ( 438,941 ) 30,049,531 - - ( 265,511 ) - - 840 - - ( 2,383,855 ) 2,020,732 - 2,040,680 2,020,732 - ( 343,175) - - - - - 25,228 21,404) - ( 1,224) $ 12,620,337 ($ 438,941) $ 29,465,689
													Exchange differences on translating foreign operations $ 401,613 ) - - - 334,217) 334,217) - - - - 735,830 ) - - - 1,408,507 1,408,507 - - - $ 672,677	Unrealized gain (loss) on financial assets at FVTOCI $ 6,624,036 - - - 4,735,128 4,735,128 - - - ( 2,325) 11,356,839 - - - 612,225 612,225 - - ( 21,404) $ 11,947,660
							Legal reserve $ 2,838,651 - - - - - - - - - 2,838,651 - - - - - - - - $ 2,838,651	Special reserve $ 341,773 - - - - - - - - - 341,773 - - - - - - - - $ 341,773	Unappropriated earnings (accumulated deficit) $ 2,202,427 ( 263,583 ) - ( 282,826 ) 2,362 ( 280,464) - - - 2,325 1,660,705 ( 265,511 ) - ( 2,383,855 ) 19,948 ( 2,363,907) - - 20,180 ($ 948,533)
	OrdinaryShare $ 13,547,626 - - - - - 88,145 - - - 13,635,771 - - - - - 41,415 - - $ 13,677,186	Capital Collected in Advance $ 4,288 - - - - - ( 74,923 ) 82,361 - - 11,726 - - - - - ( 35,203 ) 25,228 - $ 1,751
		( (			( (				( ( ( ( ( ( (	( ( ( ( ( (		( ( ( (		( (	( (		( ( ( ( ( (	$ 26,106,202 263,583 ) 322 282,826 ) 4,403,273 4,120,447 - 82,361 3,782 - 30,049,531 265,511 ) 840 2,383,855 ) 2,040,680 343,175) - 25,228 1,224) $ 29,465,689

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

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UPC Technology Corporation and Subsidiaries

Consolidated Cash Flow Statement

For the Years Ended December 31, 2024 and 2023

In Thousands of New Taiwan Dollars

Code Cash flow from operating activities A10000 Loss before income tax A20010 Adjustments for: A20300 Expected credit loss (gain) A20100 Depreciation expense A20200 Amortization expense A20900 Financial cost A21200 Interest income A21300 Dividend income A21900 Compensation costs of employee share-based payment A22500 Loss on disposal of property, plant and equipment A20400 Net gain on financial assets at FVTPL A22300 Share of profit or loss of associates accounted for using the equity method A29900 Long-term deferred revenue transferred to other revenue A23800 Write-down (reversed) of inventories A24600 Gain on lease modification, net A30000 Changes in operating assets and liabilities A31130 Notes receivable A31150 Trade receivables A31180 Other receivables A31190 Other receivable from related parties A31200 Inventories A31240 Other current assets A32130 Notes payable A32150 Trade payables A32180 Other payables A32200 Provisions A32230 Other current liabilities A32240 Net defined benefit liabilities A33000 Cash generated from (used in) operations	2024 ( $ 2,713,577 ) 2,821 1,795,529 167,986 529,247 ( 77,426 ) ( 397,414 ) - ( 621 ) ( 253 ) ( 382 ) ( 13,195 ) 131,495 ( 105 ) ( 281,199 ) 285,016 ( 11,665 ) 330 1,351,238 773,905 262,816 431,527 ( 183,874 ) 27,735 118,116 ( 18,651) 2,179,399	2023
		( $ 156,536 ) ( 3,987 ) 1,841,316 193,837 401,935 ( 53,319 ) ( 409,726 ) 3,782 12,692 ( 425 ) ( 691 ) ( 12,944 ) ( 182,531 ) - ( 107,468 ) ( 1,064,059 ) ( 19,263 ) ( 471 ) 60,528 ( 394,115 ) ( 72,460 ) 62,252 ( 89,968 ) 42,747 ( 160,443 ) 2,883 ( 106,434 )

(To be continued)

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(Continued from the previous page)

Code A33100 Interest received A33500 Income taxes paid AAAA Net cash generated from (used in) operating activities Cash flow from investing activities B00010 Acquisitions of financial assets at FVTOCI B00020 Proceeds from disposal of financial assets at FVTOCI B00030 Proceeds from the capital reduction of financial assets at FVTOCI B00040 Acquisition of financial assets at amortized cost B00050 Proceeds from disposal of financial assets at amortized cost B00100 Acquisition of financial assets at FVTPL B00200 Proceeds from disposal of financial assets at fair value through profit and loss B02700 Purchase of property, plant and equipment (including prepayment for equipment) B02800 Proceeds from disposal or property, plant and equipment B03700 Increase in refundable deposits B03800 Decrease in refundable deposits B04500 Payments of computer software B06700 Increase in other non-current assets B07600 Dividends received BBBB Net cash used in investing activities Cash Flow from Financing Activities C01300 Repayment of bonds C00100 Proceeds from short-term borrowings C00200 Repayment of short-term borrowings C01600 Proceeds from long-term borrowings C01700 Repayment of long-term borrowings C03000 Guarantee deposit received C03100 Guarantee deposit refunded C04020 Repayment of the principal portion of lease liabilities C04500 Cash dividends

(To be continued)

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(Continued from the previous page)

Code C04800 Proceeds from exercise of employee share options C05600 Interest paid CCCC Net cash generated from financing activities DDDD Effect of exchange rate changes on cash and cash equivalents EEEE Net increase (decrease) in cash and cash equivalents E00100 Cash and cash equivalents at the beginning of the year E00200 Cash and cash equivalents at the end of the year		2024 $ 25,228 527,095) 177,252 201,796 1,653,064 3,209,524 $ 4,862,588		2023
	(		$ 82,361 ( 396,024) 1,054,186 ( 186,947) ( 1,035,111 ) 4,244,635 $ 3,209,524

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

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UPC Technology Corporation and Subsidiaries

Notes to Consolidated Financial Statements

January 1 to December 31, 2024 and 2023

(Unless otherwise specified, amounts are in thousands of New Taiwan Dollars)

I. General

UPC Technology Corporation (hereinafter referred to as "the Company") was incorporated in August 1976 and mainly produces and sells petrochemical products, such as phthalic anhydride and plasticizers. The Company's shares have been listed and traded on the Taiwan Stock Exchange since March 1989.

The consolidated financial statements are presented in the Company’s functional currency, i.e., NTD.

II. Date and Procedures for Approval of Financial Statements

The consolidated financial statements were approved by the Board of Directors on March 7, 2025.

III. Application of New and Revised International Financial Reporting Standards

• (I) Initial application of the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC), (hereinafter referred to as “IFRS Accounting Standards” endorsed and issued into effect by the Financial Supervisory Commission (FSC)

• The application of the IFRS Accounting Standards endorsed and issued into

• effect by the FSC did not cause a material change in the accounting policies of the Company.

• (II) IFRS Accounting Standards applicable in 2025, as endorsed by the FSC

Effective date announced New/amended/revised standards or interpretation by IASB Amendments to IAS 21 “Lack of Exchangeability” January 1, 2025 (Note 1) Amendments to IFRS 9 and IFRS 7 “Amendments to January 1, 2026 (Note 2) the Classification and Measurement of Financial Instruments” regarding amendments to the application guidance on the classification of financial assets

• Note 1: Applicable to annual reporting periods beginning on or after January 1, 2025. When the amendments apply for the first time, the comparative period shall not be restated; instead, the effect shall be recognized in the retained

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earnings or exchange differences arising from the translation of the financial statements of foreign operations under equity (as appropriate) and the relevant affected assets and liabilities on the initial application date.

• Note 2: The amendments apply to the annual reporting periods beginning on or after January 1, 2026. Enterprises may also choose to apply early on January 1, 2025. When the amendment is first applied, it should be applied retrospectively without restatement of comparative periods, and the effect of the initial application should be recognized on the date of initial application. However, if an enterprise is able to restate without the benefit of hindsight, it may choose to restate the comparative period.

By the time the release date of the consolidated financial statements was approved, the Company has confirmed that the amendments to the applicable standards and interpretations approved by the FSC in 2025 will not have a significant impact on its financial position and financial performance based on its assessment.

• (III) The IFRS Accounting Standards released by the IASB but not yet endorsed and issued into effect by the FSC

issued into effect by the FSC
New/amended/revised standards or interpretation “Annual Improvements to IFRS Accounting Standards-Volume 11” Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” regarding amendments to the application guidance on derecognition of financial liabilities Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity” Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture” IFRS 17 “Insurance Contracts” Amendments to IFRS 17 Amendments to IFRS 17 “Initial Application of IFRS 17 and IFRS 9 - Comparative Information” IFRS 18 “Presentation and Disclosure in Financial Statements” IFRS 19 “Disclosure Initiative-Subsidiaries without Public Accountability: Disclosures”	Effective date announced byIASB(Note)
	January 1, 2026 January 1, 2026 January 1, 2026 To be determined January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2027 January 1, 2027

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Note: Unless otherwise noted, the above new/revised/amended standards and interpretations take effective in their respective annual reporting periods beginning on or after their respective dates.

IFRS 18 “Presentation and Disclosure in Financial Statements”

IFRS 18 will replace IAS 1 “Presentation of Financial Statements”. The main changes in this standard include:

• The statement of profit or loss should classify income and expenses in the operating, investing, financing, income taxes, and discontinued operations categories.

• An entity must present totals and subtotals in the statement of profit or loss for operating profit or loss, profit or loss before financing and income taxes and profit or loss.

• Requirements for provision of guidance to enhance aggregation and disaggregation: The Group should identify assets, liabilities, equity, income, expenses, losses, and cash flows in each transaction or other events, and classify and aggregate them based on shared characteristics so that the main line items presented in the financial statements share at least one similar characteristic. Items should be disaggregated based on characteristics that are not shared. The Group should label such items as “other” only if it cannot find a more informative title.

• Increasing the disclosure of management-defined performance measures (MPMs): When the Group engages in public communications outside financial statements and communicates to management’s view of a specific aspect of the financial performance of the entity as a whole, the Group should disclose information about its MPMs in a single note to the financial statements, including a description of how the MPM is measured, how the MPM is calculated, and a reconciliation between the MPM and the total or subtotal required by IFRS Accounting Standards, including the income tax effect and the effect on non-controlling interests for each item disclosed in the reconciliation.

In addition to the above impacts, by the time the release date of the consolidated financial statements was approved, the Group has continued to evaluate other impacts of the amendments to various standards and interpretations on its financial position and financial performance, and the relevant impacts will be disclosed when the evaluation is completed.

• 17 -

IV. Summary of Significant Accounting Policies

• (I) Statement of compliance

The consolidated financial statements are prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the IFRS Accounting Standards endorsed and issued into effect by the FSC.

(II) Basis for preparation Except for financial instruments measured at fair value and net defined benefit liabilities recognized as the present value of defined benefit obligations less the fair value of plan assets, the consolidated financial statements were prepared on a historical cost basis.

The fair value measurement is classified into three levels based on the observability and significance of relevant inputs:

1. Level 1 inputs: Quoted (unadjusted) prices in active markets for identical assets or liabilities on the measurement date.

2. Level 2 inputs: Inputs, other than quoted market prices within level 1 that are observable, either directly (i.e., prices) or indirectly (derived from prices) for assets or liabilities.

3. Level 3 inputs: Unobservable inputs for assets or liabilities.

4. (III) Criteria for classification of current and non-current assets and liabilities

   • Current assets include:

5. Assets held primarily for the purpose of trading;

6. Assets expected to be realized within 12 months after the balance sheet date; and

7. Cash or cash equivalents (excluding assets restricted from being exchanged or used to settle a liability for at least 12 months after the balance sheet date).

Current liabilities include:

1. Liabilities held primarily for the purpose of trading;

2. Liabilities due to be settled within 12 months after the balance sheet date; and

3. Liabilities for which there is no substantive right on the balance sheet date to defer the repayment deadline to at least 12 months after the balance sheet date.

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

current.

• 18 -

(IV) Basis for consolidation

The consolidated financial statements include the financial statements of the Company and entities controlled by the Company (subsidiaries). The consolidated statement of comprehensive income includes the operating profit or loss of acquired or disposed subsidiaries from the acquisition date to the disposal date during the current period. The subsidiaries’ financial statements have been properly adjusted to make their accounting policies consistent with those of the Group. In the preparation of the consolidated financial statements, all intra-group transactions, account balances, revenues, and expenses are eliminated in full. The total comprehensive income of subsidiaries is attributed to the Company's owners and non-controlling interests, even if the non-controlling interests result in a deficit balance.

When changes in the Group's ownership interest in a subsidiary do not result in a loss of control, they are treated as equity transactions. The carrying amounts of the Group and non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiary. The difference between the adjustment amount of non-controlling interests and the fair value of consideration paid or received is recognized directly in equity and attributed to the Company's owners.

For details of subsidiaries, shareholding ratios, and business activities, please refer to Note 12, Table 7, and Table 8.

(V)

Foreign currencies

When the financial statements of each individual entity are prepared, transactions in currencies other than the entity’s functional currency (i.e., foreign currencies) are recognized at the exchange rates prevailing on the transaction dates.

Foreign currency monetary items are translated at the closing rate at each balance sheet date. Exchange differences arising from the settlement or translation of monetary items are recognized in profit or loss in the period in which they occur.

Foreign currency non-monetary items measured at fair value are translated at the exchange rates prevailing at the dates when the fair values were determined. Exchange differences arising from such translation are recognized in profit or loss, except for exchange differences arising from fair value changes that are recognized in other comprehensive income, which are recognized in other comprehensive income.

• 19 -

Foreign currency non-monetary items measured at historical cost are translated at the exchange rates prevailing at the transaction dates and are not subsequently retranslated.

When preparing consolidated financial statements, the assets and liabilities of foreign operations (including subsidiaries and associates whose operating countries or currencies differ from the Company's) are translated into NTD at the exchange rates prevailing at each balance sheet date. Revenue and expense items are translated at the average exchange rate for the period. Exchange differences arising from such translation are recognized in other comprehensive income and attributed to the Company's owners and non-controlling interests separately.

(VI)

Inventories

Inventories primarily include merchandise, raw materials, supplies, finished goods, semi-finished goods, work-in-progress, and construction land. Inventories are measured at the lower of cost or net realizable value. When comparing cost and net realizable value, individual items are used as the basis, except for inventories of the same category. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. The cost of inventories is calculated using the weightedaverage method.

(VII) Investments in associates

An associate is an entity over which the Group has significant influence but is neither a subsidiary nor a joint venture.

The Group accounts for investments in associates using the equity method. Under the equity method, investments in associates are initially recognized at cost, and the carrying amount after the acquisition date is subsequently increased or decreased according to the Group's share of the profit or loss and other

comprehensive income of the associate, as well as by profit distributions. In addition, changes in the equity of the associate are recognized in proportion to the Group's ownership percentage.

When an associate issues new shares and the Group does not subscribe for them in proportion to its ownership, resulting in a change in the Group's ownership percentage and a corresponding increase or decrease in the equity value of the investment, the increase or decrease is adjusted to capital surplus – changes in equity value in associates and joint ventures and investments using the equity method.

• 20 -

However, if the Group's ownership interest in the associate decreases due to not subscribing for or acquiring new shares in proportion to its ownership, the amounts previously recognized in other comprehensive income related to the associate are reclassified in proportion to the decrease, based on the same basis as if the associate had directly disposed of the related assets or liabilities. If the aforementioned adjustment requires a debit to capital surplus, and the balance of capital surplus arising from investments accounted for using the equity method is insufficient, the difference is debited to retained earnings.

When the Group's share of losses on an associate equal or exceeds its interest in the associate (including the carrying amount of the investment in the associate under the equity method and other long-term interests that, in substance, form part of the Company's net investment in the associate), the Group ceases recognizing further losses. The Group recognizes additional losses and liabilities only to the extent of legal obligations, constructive obligations, or payments made on behalf of the associate.

When assessing impairment, the Group treats the entire carrying amount of the investment (including goodwill) as a single asset and compares its recoverable amount to its carrying amount for impairment testing. The impairment loss recognized is not allocated to any asset that forms part of the carrying amount of the investment, including goodwill. Any reversal of impairment loss is recognized to the extent of a subsequent increase in the recoverable amount of the investment.

The Group discontinues the equity method from the date its investment ceases to be an associate, and measures any retained interest in the former associate at fair value. The difference between the fair value plus the disposal proceeds and the carrying amount of the investment at the date the equity method is discontinued is recognized in profit or loss for the period. In addition, all amounts previously recognized in other comprehensive income related to the associate are accounted for on the same basis as if the associate had directly disposed of the related assets or liabilities. If an investment in an associate becomes an investment in a joint venture, or vice versa, the Group continues to apply the equity method and does not remeasure the retained interest.

Profits or losses resulting from upstream, downstream, and lateral transactions between the Group and its associates are recognized in the consolidated financial

• 21 -

statements only to the extent that they are unrelated to the Group's interest in the associates.

(VIII) Property, plant and equipment

Property, plant and equipment are recognized at cost and subsequently measured at cost less accumulated depreciation and accumulated impairment losses.

Property, plant and equipment under construction are recognized at cost less accumulated impairment losses. Cost includes professional service fees and borrowing costs that meet the capitalization criteria. These assets are classified into the appropriate category of property, plant and equipment and begin to be depreciated when they are completed and ready for intended use.

Land held for own use is not depreciated.

Property, plant and equipment are depreciated on a straight-line basis. Each significant component is depreciated separately. The Group reviews the estimated useful lives, residual values, and depreciation methods at least at the end of each annual reporting period, and the effects of changes in accounting estimates are applied prospectively.

Upon derecognition of property, plant and equipment, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss.

(IX) Computer software

Computer software is measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment losses. The Group amortizes computer software using the straight-line method and reviews the estimated useful lives, residual values, and amortization methods at least at the end of each annual reporting period. The residual value of computer software with finite useful lives is estimated to be zero, unless the Group expects to dispose of the software before the end of its economic life. The effects of changes in accounting estimates are treated prospectively.

Computer software is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. The gain or loss arising from the derecognition of computer software is the difference between the net disposal proceeds and the carrying amount of the asset, and is recognized in profit or loss. (X) Imapirment of property, plant and equipment, right-of-use assets, and intangible assets

• 22 -

The Group assesses at each balance sheet date whether there is any indication that property, plant and equipment, right-of-use assets, and intangible assets may be impaired. If any indication of impairment exists, the recoverable amount of the asset is estimated. If it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. Corporate assets are allocated to the smallest group of cashgenerating units on a reasonable and consistent basis.

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

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

When an impairment loss is subsequently reversed, the carrying amount of the asset or cash-generating unit is increased to its revised recoverable amount, but the increased carrying amount shall not exceed the carrying amount that would have been determined had no impairment loss been recognized in prior years (less amortization or depreciation). The reversal of an impairment loss is recognized in profit or loss.

(XI) Financial instruments

Financial assets and financial liabilities are recognized in the consolidated balance sheet when the Group becomes a party to the contractual provisions of the instrument.

Upon initial recognition of financial assets and financial liabilities, if the financial asset or financial liability is not measured at FVTPL, it is measured at fair value plus transaction costs that are directly attributable to the acquisition or issuance of the financial asset or financial liability. Transaction costs that are directly attributable to the acquisition or issuance of financial assets or financial liabilities measured at FVTPL are recognized immediately in profit or loss.

1. Financial assets

The Group recognizes and derecognizes regular purchases and sales of financial assets on the trade date.

• 23 -

(1) Measurement categories

The Group's financial assets are classified as financial assets at FVTPL, financial assets measured at amortized cost, and equity instrument investments at FVTOCI.

• A. Financial assets at FVTPL

Financial assets at FVTPL include financial assets mandatorily measured at FVTPL. Financial assets mandatorily measured at FVTPL include equity instrument investments that the Group does not designate as measured at FVTOCI, and debt instrument investments that do not meet the criteria for classification as measured at amortized cost or fair value through other comprehensive income.

Financial assets at FVTPL are measured at fair value. Dividends and interest are recognized in other income and interest income, respectively. Gains or losses from remeasurement (including any dividends or interest arising from the financial asset) are recognized in other gains and losses. Refer to Note 31, “Financial instruments”, for the determination of fair value.

• B. Financial assets measured at amortized cost

The Group classifies financial assets as measured at amortized cost if both of the following conditions are met:

• 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 for principal and interest on the principal amount outstanding.

Financial assets measured at amortized cost (including cash and cash equivalents, notes receivable, trade receivable, other receivables, time deposits with original maturities of more than three months, and guarantee deposits paid) are measured at amortized cost using the effective interest method, less any impairment losses. Any foreign exchange gains or losses are recognized in profit or loss.

• 24 -

Interest income is calculated by multiplying the effective interest rate by the gross carrying amount of the financial asset, except in the following two cases:

• a. For purchased or originated credit-impaired financial assets, interest income is calculated by multiplying the credit-adjusted effective interest rate by the amortized cost of the financial asset.

• b. For financial assets that are not purchased or originated creditimpaired but subsequently become credit-impaired, interest income is calculated by multiplying the effective interest rate by the amortized cost of the financial asset from the next reporting period after the credit impairment.

Credit-impaired financial assets refer to financial assets, of which issuers or debtors have experienced significant financial difficulties, defaulted, or are likely to file for bankruptcy or other financial reorganization, or where the active market for the financial assets has disappeared due to financial difficulties.

Cash equivalents include highly liquid investments that are readily convertible to fixed amounts of cash within three months of acquisition, are subject to an insignificant risk of changes in value, and are used to meet short-term cash commitments.

Demand deposits that are restricted from use by contracts with third parties are also considered cash unless the restrictions change the nature of the deposits so that they no longer qualify as cash. If the restrictions on the use of demand deposits exceed 12 months after the balance sheet date, the related amounts are classified as non-current assets.

• C. Equity instrument investments measured at FVTOCI

At initial recognition, the Group may make an irrevocable election to designate equity instrument investments that are neither held for trading nor contingent consideration recognized in a business combination as measured at FVTOCI.

Equity instrument investments measured at FVTOCI are measured at fair value, with subsequent changes in fair value reported in other comprehensive income and accumulated in other equity. Upon

• 25 -

disposal of the investment, accumulated gains or losses are transferred directly to retained earnings and are not reclassified to profit or loss.

Dividends from equity instrument investments measured at FVTOCI are recognized in profit or loss when the Group's right to receive payment is established, unless the dividend clearly represents a recovery of part of the cost of the investment.

(2)

Impairment of financial assets

The Group assesses the impairment losses of financial assets measured at amortized cost (including trade receivable) at each balance sheet date based on expected credit losses.

Trade receivables are recognized with a loss allowance based on lifetime expected credit losses. Other financial assets are first assessed for significant increases in credit risk since initial recognition. If there has been no significant increase, a loss allowance is recognized based on 12-month expected credit losses. If there has been a significant increase, a loss allowance is recognized based on lifetime expected credit losses.

Expected credit losses are the weighted average of credit losses, with the risk of default occurring as the weights 12-month expected credit losses represent the expected credit losses that result from default events on a financial instrument that are possible within 12 months after the reporting date, and lifetime expected credit losses represent the expected credit losses that result from all possible default events over the expected life of a financial instrument.

For internal credit risk management purposes, the Group determines that the following conditions represent a default of a financial asset, without considering collateral held:

• A. There is internal or external information indicating that the debtor is unlikely to pay its obligations.

• B. There are past due events, unless there is reasonable and supportable information indicating that a delayed default criterion is more appropriate.

Impairment losses for all financial assets are recognized by reducing their carrying amounts through allowance accounts, except for impairment losses on debt instrument investments measured at FVTOCI,

• 26 -

which are recognized in other comprehensive income without reducing their carrying amounts.

(3) Derecognition of financial assets

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

Upon derecognition of a financial asset measured at amortized cost in its entirety, the difference between the carrying amount and the consideration received is recognized in profit or loss. Upon derecognition of a debt instrument investment measured at FVTOCI in its entirety, the difference between the carrying amount and the sum of the consideration received plus any cumulative gains or losses recognized in other comprehensive income is recognized in profit or loss. Upon derecognition of an equity instrument investment measured at FVTOCI in its entirety, accumulated gains or losses are transferred directly to retained earnings and are not reclassified to profit or loss.

2.

• Equity Instruments

Debt and equity instruments issued by the Group are classified as financial liabilities or equity in accordance with the substance of the contractual arrangement and the definitions of financial liabilities and equity instruments.

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

Repurchased equity instruments of the Company itself are recognized and deducted within equity. Purchases, sales, issuances, or cancellations of the Company's own equity instruments are not recognized in profit or loss. 3. Financial liabilities

• (1) Subsequent measurement

All financial liabilities are measured at amortized cost using the effective interest method, except for the following:

Financial liabilities measured at FVTPL

Financial liabilities measured at FVTPL are financial liabilities held for trading.

• 27 -

Financial liabilities held for trading are measured at fair value, and gains or losses from remeasurement (including any dividends or interest paid on the financial liability) are recognized in profit or loss.

• (2) Derecognition of financial liabilities

Upon derecognition of a financial liability, the difference between its carrying amount and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.

(XII) Provisions

The amount recognized as a provision is the best estimate of the expenditure required to settle the obligation at the balance sheet date, taking into account the risks and uncertainties of the obligation. Provisions are measured at the present value of the estimated cash flows required to settle the obligation.

(XIII)

Revenue recognition

The Group recognizes revenue when it satisfies a performance obligation in a contract with a customer, after allocating the transaction price to each performance obligation.

1. Revenue from sale of goods

Revenue from the sale of goods is derived from the sale of petrochemical products. Since the customer has the right to determine the price and use of the goods and bears the primary responsibility for resale and the risk of obsolescence when the petrochemical products arrive at the customer's

designated location, the Group recognizes revenue and trade receivables at that point in time.

1. Revenue from services

Revenue from services is derived from warehousing and logistics services. Revenue is recognized as the services are provided, in accordance with the contract.

(XIV) Leases

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

1. The Group as lessor

A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an asset to the lessee. All other leases are classified as operating leases.

• 28 -

Under operating leases, lease payments, and net of lease incentives, are recognized as income on a straight-line basis over the relevant lease term. Initial direct costs incurred in obtaining an operating lease are added to the carrying amount of the underlying asset and recognized as an expense on a straight-line basis over the lease term. Lease negotiations with lessees are accounted for as a new lease from the effective date of the lease modification.

Contingent rents that are not based on an index or rate are recognized as revenue in the period in which they are incurred.

2.

The Group as lessee

Except for lease payments for low-value asset leases and short-term leases, which are recognized as an expense on a straight-line basis over the lease term, right-of-use assets and lease liabilities are recognized on the lease commencement date for all other leases.

Right-of-use assets are initially measured at cost, which includes the initial measurement amount of the lease liability, lease payments paid before the commencement date less any lease incentives received, initial direct costs, and estimated costs of restoring the underlying asset. They are subsequently measured at cost less accumulated depreciation and accumulated impairment losses, adjusted for remeasurements of the lease liability. Right-of-use assets are presented separately in the consolidated balance sheet.

Right-of-use assets are depreciated on a straight-line basis from the commencement date to the earlier of the end of the useful life or the end of the lease term.

Lease liabilities are initially measured at the present value of lease payments, which include fixed payments, substantively fixed payments, and variable lease payments that depend on an index or rate. Lease payments are discounted using the interest rate implicit in the lease if that rate is readily determinable. If that rate is not readily determinable, the lessee's incremental borrowing rate is used.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, and interest expense is recognized over the lease term. If there is a change in future lease payments due to a change in the lease term or an index or rate used to determine lease payments, the Group remeasures the lease liability and adjusts the right-of-use asset accordingly.

• 29 -

However, if the carrying amount of the right-of-use asset has been reduced to zero, any remaining remeasurement amount is recognized in profit or loss. For lease modifications that are not treated as separate leases, remeasurements of lease liabilities due to a reduction in the lease scope reduce the right-of-use asset, and gains or losses on partial or full lease termination are recognized. Remeasurements of lease liabilities due to other modifications adjust the rightof-use asset. Lease liabilities are presented separately in the consolidated balance sheet.

• (XV) Borrowing costs

Borrowing costs that are directly attributable to the acquisition, construction, or production of a qualifying asset are capitalized as part of the cost of that asset until substantially all the activities necessary to prepare the asset for its intended use or sale are complete.

Investment income earned on the temporary investment of specific borrowings prior to their expenditure on qualifying assets is deducted from borrowing costs eligible for capitalization.

All other borrowing costs are recognized as an expense in the period in which they are incurred.

(XVI) Government grants

Government grants are recognized only when there is reasonable assurance that the Group will comply with the conditions attached to them and that the grants will be received.

Government grants related to income are recognized on a systematic basis over the periods in which the Group recognizes the related costs as expenses that the grants are intended to compensate, either as a reduction of the related costs or as other income. Government grants related to assets, which are conditional upon the Group purchasing, constructing, or otherwise acquiring non-current assets, are recognized as deferred income and reclassified to profit or loss on a reasonable and systematic basis over the useful lives of the related assets.

Government grants that are intended to compensate for expenses or losses already incurred or to provide immediate financial support to the Group with no related future costs are recognized in profit or loss in the period in which they become receivable.

• 30 -

(XVII) Employee benefits

1. Short-term employee benefits

Liabilities for short-term employee benefits are measured at the

• undiscounted amounts expected to be paid in exchange for employee services.

• 1. Post-employment benefits

Pension costs for defined contribution pension plans are recognized as an expense as employees provide services.

Defined benefit costs for defined benefit pension plans, including service costs, net interest, and remeasurements, are actuarially determined using the projected unit credit method. Service costs, including current service costs, and net interest on the net defined benefit liability are recognized as employee benefit expenses when they occur. Remeasurements, including actuarial gains and losses and returns on plan assets excluding interest, are recognized in other comprehensive income and included in retained earnings when they occur, and are not reclassified to profit or loss in subsequent periods.

The net defined benefit liability represents the shortfall in contributions to defined benefit pension plans.

1. Other long-term employee benefits

The accounting treatment for other long-term employee benefits is the same as that for defined benefit pension plans, except that the related remeasurements are recognized in profit or loss.

• 31 -

(XVIII) Share-based payment agreements

Equity-settled share-based payment arrangements are recognized as an expense on a straight-line basis over the vesting period, based on the fair value of the equity instruments at the grant date and the best estimate of the number of equity instruments expected to vest, with a corresponding adjustment to capital surplus - employee stock options. If the equity instruments vest immediately on the grant date, the expense is recognized in full on the grant date. For transfers of shares to employees, the grant date is the date the employees are notified.

(XIX) Income taxes

Income tax expense is the sum of current income tax and deferred income tax.

1. Current income tax

The Group determines its current income (loss) based on the regulations established by each tax jurisdiction where it files income tax returns and calculates the income tax payable (recoverable) accordingly.

The additional income tax on undistributed earnings calculated in accordance with the Income Tax Act of the Republic of China is recognized in the year of the shareholders' meeting resolution.

Adjustments to prior year income tax payable are included in current income tax.

1. Deferred income tax

Deferred income tax is calculated based on temporary differences arising from differences between the carrying amounts of assets and liabilities and their tax bases used for calculating taxable income.

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

Deferred tax liabilities are recognized for all taxable temporary differences associated with investments in subsidiaries and associates, except where the Group is able to control the timing of the reversal of the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax assets are recognized for deductible temporary differences associated with such investments only to the extent that it is probable that sufficient taxable profit will be available against which the

• 32 -

temporary differences can be utilized and are expected to reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the asset to be recovered. Unrecognized deferred tax assets are also reviewed at each balance sheet date and increased to the extent that it is probable that future taxable profit will allow all or part of the asset to be recovered.

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

3.

Current and deferred income tax

Current and deferred income tax are recognized in profit or loss, except for those related to items recognized in other comprehensive income or directly in equity, in which case the current and deferred income tax are recognized in other comprehensive income or directly in equity, respectively.

V. Major Sources of Critical Accounting Judgments, Estimates, and Assumptions Uncertainty

In adopting accounting policies, the Group's management makes judgments, estimates, and assumptions based on historical experience and other relevant factors when information is not readily available from other sources Actual results may differ from these estimates.

The Group's management continues to review its estimates and underlying assumptions, including the potential impact of significant accounting estimates on cash flow projections, growth rates, discount rates, and profitability.

As for the accounting policies, estimates, and underlying assumptions adopted, based on management's assessment, there are no significant accounting judgments, estimates, or assumptions with significant uncertainty.

• 33 -

VI. Cash and Cash Equivalents

VI.	Cash and Cash Equivalents	Cash and Cash Equivalents
VII. VIII.	December 31,2024 December 31,2023 Cash on hand and petty cash $ 239 $ 235 Bank checks and demand deposits 4,788,013 3,137,158 Cash equivalents (investments with original maturities of three months or less) Banker's acceptances 33,834 31,647 Bank time deposits 40,502 40,484 $ 4,862,588 $ 3,209,524 Interest rate ranges for bank deposits at the balance sheet date were as follows: December 31,2024 December 31,2023 Bank demand deposits and time deposits 0.01%~4.50% 0.00%~5.28% Financial Instruments Measured at FVTPL December 31,2024 December 31,2023 Financial assets-current Mandatorily measured at FVTPL Non-derivative financial assets - Fund beneficiary certificates $ - $ 6,852 The Group did not engage in any derivative trading in 2024 and 2023. Financial Assets at FVTOCI (Equity Instrument Investments) December 31,2024 December 31,2023 Current Domestic investments TWSE/TPEx-listed stocks $ 1,080,489 $ 1,050,698 Non-current Domestic investments Stocks listed on TWSE/TPEx and the emerging stock market $ 15,501,660 $ 14,712,840 Stocks unlisted 772,744 754,795 Subtotal 16,274,404 15,467,635 Foreign investments Stocks unlisted - 2 $ 16,274,404 $ 15,467,637		December 31,2023
			$ 235 3,137,158 31,647 40,484 $ 3,209,524 were as follows: December 31,2023
			0.00%~5.28% December 31,2023
	Current Domestic investments TWSE/TPEx-listed stocks Non-current Domestic investments Stocks listed on TWSE/TPEx and the emerging stock market Stocks unlisted Subtotal Foreign investments Stocks unlisted
				$ 1,050,698 $ 14,712,840 754,795 15,467,635 2 $ 15,467,637

The Group primarily invests in common stocks of domestic and foreign companies for long-term strategic purposes, expecting to profit from long-term investments. The Group’s management believes that recognizing short-term fair value fluctuations of these investments in profit or loss is inconsistent with the aforementioned long-term

• 34 -

investment plan. Therefore, it chooses to designate these investments as measured at FVTOCI.

IX. Financial Assets Measured at Amortized Cost

Financial Assets Measured at Amortized	Cost
Domestic investments Time deposits with original maturities exceeding three months (1) Restricted deposits (2)	December 31,2024 $ 100,000 38,475 $ 138,475	December 31,2023
			$ 299,099 33,723 $ 332,822

• (1) As of December 31, 2024 and 2023, the interest rates for time deposits with original maturities exceeding three months ranged from 0.67% to 1.37% and 0.54% to 1.24%, respectively.

• (2) As of December 31, 2024 and 2023, the interest rates for restricted deposits ranged from 0.1% to 0.95% and 0.30%, respectively.

• (3) For information on financial assets measured at amortized cost that are pledged, refer to Note 33.

• X. Notes receivable, trade receivable, and other receivables

Notes receivable Measured at amortized cost Gross carrying amount Less: Loss allowance Trade receivable Measured at amortized cost Gross carrying amount Less: Loss allowance Other receivables	December 31,2024 $ 1,082,912 ( 173) $ 1,082,739 $ 3,878,273 ( 14,940) $ 3,863,333 $ 286,606	December 31,2023	December 31,2023
	( (	( (	$ 758,232 80) $ 758,152 $ 3,969,907 11,665) $ 3,958,242 $ 256,735

For information on discounted notes receivable transactions, refer to Notes 17 and 31(5).

The average credit period for the Group's sales of goods is 30 days.

Before accepting new customers, the Group evaluates the credit quality of potential customers and sets credit limits through internal credit and sales management departments. Customers' credit limits and ratings are reviewed semi-annually.

• 35 -

To mitigate credit risk, the Group's management assigns a dedicated team to determine credit limits, approve credit, and implement other monitoring procedures to ensure that appropriate actions are taken to recover overdue receivables. Additionally, the Group individually reviews the recoverable amounts of receivables at the balance sheet date to ensure that appropriate impairment losses are recognized for unrecoverable receivables. Accordingly, management believes that the Group's credit risk has been significantly reduced.

As of December 31, 2024 and 2023, no customer's receivables exceeded 5% of total receivables.

The Group recognizes the loss allowance for receivables based on lifetime expected credit losses. Lifetime expected credit losses are determined based on the customer's past default records, current financial position, and industry economic conditions, with expected credit loss ratios set for different customer credit ratings of receivables.

If there is evidence that a counterparty is facing significant financial difficulties and the Group cannot reasonably expect to recover the amount, e.g., when the counterparty is undergoing liquidation or the debt is overdue for more than one year, the Group recognizes a 100% allowance for doubtful accounts for receivables overdue for more than one year. However, collection activities continue, and any amounts recovered from collection are recognized in profit or loss.

The Group measures the loss allowance for receivables using a provision matrix as follows:

December 31, 2024

	Credit ratingB $ 1,328,507 4,141) $ 1,324,366 Credit ratingB $ 775,134 2,477) $ 772,657		Credit ratingC $ 982,042 4,973) $ 977,069 Credit ratingC $ 445,963 2,544) $ 443,419		Credit ratingD $ 544,170 3,857) $ 540,313 Credit ratingD $ 214,709 1,965) $ 212,744		Credit ratingE $ 645,914 1,105) $ 644,809 Credit ratingE $ 438,187 1,496) $ 436,691		Notes receivable $ 1,082,912 173) $ 1,082,739 Notes receivable $ 758,232 80) $ 758,152		Total
(		(		(		(		(		(	$ 4,961,185 15,113) $ 4,946,072 Total
(		(		(		(		(		(	$ 4,728,139 11,745) $ 4,716,394

• 36 -

The aging analysis of trade receivable is as follows:

Not overdue Less than 30 days 31 to 60 days 61 to 90 days 91 days and over Total	December 31,2024 $ 4,948,712 10,820 1,653 - - $ 4,961,185	December 31,2023	December 31,2023
			$ 4,696,512 31,528 - 16 83 $ 4,728,139

The changes in the allowance for losses on trade receivable are as follows:

Beginning balance Add: Impairment losses provided for the year Less: Impairment losses reversed for the year Less: Actual write-offs for the year Foreign currency translation differences Ending balance	2024 $ 11,665 7,122 ( 4,394 ) - 547 $ 14,940	2023
		$ 17,499 7,807 ( 11,755 ) ( 1,756 ) ( 130) $ 11,665

The changes in the allowance for losses on notes receivable are as follows:

Beginning balance Add: Impairment losses provided for the year Less: Impairment losses reversed for the year Ending balance		2024 $ 80 348 255) $ 173		2023
	(		(	$ 119 158 197) $ 80

XI. Inventories

Inventories
Finished goods Semi-finished goods Work in progress Raw materials Supplies Inventory in transit Construction land Less: Loss allowance	December 31,2024 $ 2,570,445 293,612 169,320 2,022,422 961,314 1,307,952 908,263 8,233,328 ( 300,287) $ 7,933,041	December 31,2023
	(	(	$ 3,450,304 412,371 205,672 2,105,796 1,015,245 1,126,273 859,813 9,175,474 159,516) $ 9,015,958

The cost of goods sold recorded by the Group is all related to inventories.

• 37 -

The cost of goods sold for 2024 and 2023 included inventory valuation losses (gain from inventory price recovery) of 131,495 thousand and (182,531 thousand), respectively. The recovery of inventory net realizable value is due to the increase in selling prices of the inventory in specific markets.

As of December 31, 2024 and 2023, the inventories expected to be recovered after more than 12 months are construction land.

• 38 -

XII. Subsidiaries

(I) The subsidiaries included in the scope of the consolidated financial statements are as follows:

follows:
Investor	Investee	Nature of business	Percentage	of ownership	Description	Remarks
			December 31,2024	December 31,2023
The Company The Company The Company The Company The Company The Company CHL CHL CHL CHL CHL CHL CHL CHL CHL CHL CHL CHL CHL CHL CHL CHL Star Bright Goldendust Natural and Daywinn Modern Vantage Charmon and Zhongshan Unicizers Linkhope Reachworld Dragonoble and Zhongshan Unicizers Pagerise Greaterise Zhongshan Unicizers, Logical Path, Pure Fantasy, and Goldendust Zhongshan Unicizers, Logical Path, Goldendust, and Magic Props Zhenjiang Union Granfaith and Zhongshan Unicizers Granfaith Faithouse UPC(M) Chemicals UPC(M) Chemicals Taizhou Union Plastics	Constant Holdings Ltd. (CHL) Glory Ace Union Venture Capital Wei Chen Investment Co. (Wei Chen) Taiwan Union International Investment Corporation (Taiwan Union International) UPC(M) Chemicals Star Bright Goldendust Natural Magic Props Pure Fantasy Union Hong Kong Modern Vantage Charmon Linkhope Reachworld Daywinn Dragonoble Pagerise Faithouse Greaterise Granfaith Logical Path Zhongshan Unicizers Taizhou Union Plastics Taizhou Union Logistics Taizhou Union Chemical Jiangsu Union Logistics Guangdong Union Logistics Panjin Union Chemical Panjin Union Logistics Panjin Union Materials Zhuhai Unicizers Zhenjiang Union ZhenJiang Union Torch Estate Nanchong Unicizers Sichuan Logistics Sichuan Logistics UPCM Trading (Thailand) UPCM Trading (Vietnam) Panjin Plastics	investment Trading investment investment investment Production and sales of plasticizers and PA investment investment investment investment investment trading investment investment investment investment investment investment investment investment investment investment investment Production and sales of plasticizers and PA Production and sales of polyvinyl chloride (PVC) powder Warehousing Production and sales of plasticizers and PA Logistics Logistics Production and sales of plasticizers and PA Warehousing Production and sales of maleic anhydride (MA) and related downstream derivatives Production and sales of plasticizers, PA, and MA Production and sales of plasticizers and PA Real estate business Production and sales of plasticizers and PA Logistics Logistics Trading Trading Production and sales of VCM	100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% - 100% 100% - 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% - - 100% 100% -	100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% - 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% - - 100% 100% 100%	Natural holds 74.41% and Daywinn holds 25.59%. (After Natural's merger with Daywinn, Natural holds 100%.) Charmon holds 49.90% and Zhongshan Unicizers holds 50.10%. Dragonoble holds 48.26% and Zhongshan Unicizers holds 51.74%. Zhongshan Unicizers holds 50.28%, Logical Path holds 6.48%, Pure Fantasy holds 17.75%, and Goldendust holds 25.49%. Zhongshan Unicizers holds 50.49%, Logical Path holds 4.01%, Goldendust holds 3.71%, and Magic Props holds 41.79%. Granfaith holds 53.00% and Zhongshan Unicizers holds 47.00%.	Note 1 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 1 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Notes 2, 6 Note 2 Note 2 Note 3 Note 2 Note 2 Note 2 Note 1 Notes 2, 6 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 1 Note 1 Note 2 Notes 2, 4 Notes 3, 4 Notes 3, 4 Note 2 Note 2 Notes 2, 5

Note 1: It is a significant subsidiary.

Note 2: It is a non-significant subsidiary.

• 39 -

• Note 3: In order to save management costs and enhance the competitiveness of the Group, the Group underwent organizational restructuring in May 2023. CHL's subsidiary, Granfaith, merged with CHL's subsidiary, Faithouse, acquiring 100% equity of the latter. After the merger, Granfaith became the surviving company, and Faithouse was dissolved. Granfaith acquired 100% equity of Sichuan Logistics, a subsidiary of Faithouse, in this merger.

• Note 4: In order to save management costs and enhance the competitiveness of the Group, the Group underwent organizational restructuring in November 2023. Nanchong Unicizers Chemical Industry Co., Ltd., a subsidiary of Granfaith, proceeded to absorb and merge 100% equity of Sichuan Logistics Industry Co., Ltd., a subsidiary of Granfaith. After the merger, Nanchong Unicizers became the surviving company, and Sichuan Logistics was dissolved. Nanchong Unicizers acquired the equity investment of Granfaith in Sichuan Logistics, increasing Granfaith's shareholding in Nanchong Unicizers to 53% and reducing Zhongshan Unicizers’s shareholding to 47%.

• Note 5: Panjin Plastics ceased operations and completed deregistration in June 2024. Note 6: To simplify the Group's investment structure and reduce costs, tthe Group's Board of Directors resolved to undertake organizational restructuring in March 2024. CHL's subsidiary, Natural, merged with CHL's subsidiary, Daywinn, acquiring 100% equity of the latter. After the merger, Natural became the surviving company, and Daywinn was dissolved. Natural acquired 25.59% equity of Taizhou Union Plastics, a subsidiary of Daywinn, in this merger.

• 40 -

As of December 31, 2024, the investment relationships and shareholding percentages of the Company and its controlled entities are as shown in the following table:

==> picture [681 x 402] intentionally omitted <==

----- Start of picture text -----

The Company’s
100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Taiwan Union UPC(M)
Glory Ace Chen Wei International Union CHL Venture Capital Chemicals
100.00% 100.00%
UPCM UPCM
Trading Trading
(Thailand) (Vietnam)
100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Union Hong Kong Star Bright Magic Props Goldendust Pure Fantasy Natural Charmon Modern Vantage Linkhope Reachworld Dragonoble Pagerise Greaterise Granfaith
100.00%
41.79%
Logical Path
53.00%
4.01% 3.71% 100.00% 25.49% 17.75% 100.00% 49.90% 100.00% 100.00% 100.00% 48.26% 100.00% 100.00%
Zhongshan Zhuhai Taizhou Union Taizhou Taizhou Jiangsu Guangdong Panjin Panjin Panjin Nanchong
Zhenjiang Unicizers Unicizers Plastics Union Union Union Union Union Union Union Unicizers
Union 50.49% 50.28% Chemical Logistics Logistics Logistics Chemical Logistics Materials
6.48%
50.10% 51.74% 47.00%
100.00%
ZhenJiang
Union Torch
Estate
----- End of picture text -----

• 41 -

(II) Subsidiaries not Included in consolidated financial statements: None.

XIII. Investments accounted for using the equity method

Individuallyimmaterial associates Unlisted companies Harbinger Ruyi	December 31,2024 $ 23,564	December 31,2023	December 31,2023
			$ 23,498

The Group's ownership interest and voting rights percentages in associates at the balance sheet date are as follows:

balance sheet date are as follows:
Companyname Harbinger Ruyi	December 31,2024 28.57%	December 31,2023
		28.57%

Summary information of individually immaterial associates

The Group's share Profit of this year Other comprehensive income Total comprehensive income		2024 $ 382 1,915) $ 1,533)		2023
	( (		(	$ 691 158) $ 533

XIV. Property, plant and equipment

Cost Balance at January 1, 2023 Additions Disposals Reclassifications Net exchange differences Balance at December 31, 2023 Accumulated depreciation Balance at January 1, 2023 Disposals Reclassifications Depreciation expense Net exchange differences Balance at December 31, 2023 Net balance as of December 31, 2023 Cost Balance at January 1, 2024 Additions Disposals Reclassifications Net exchange differences Balance at December 31, 2024 Accumulated depreciation Balance at January 1, 2024 Disposals Reclassifications Depreciation expense Net exchange differences Balance at December 31, 2024 Net balance as of December 31, 2024		Land		Buildings		Machinery and equipment		Warehouse equipment		Utilities equipment		Transportation equipment	O	ther equipment		Construction in progress and equipment pending inspection		Total
		$ 1,126,898 - - - - $ 1,126,898 $ 1,126,898 $ 1,126,898 - - - - $ 1,126,898 $ 1,126,898	( ( ( ( ( ( ( (	$ 8,691,855 85,498 386 ) 66,483 127,272) $ 8,716,178 $ 3,088,562 304 ) 819 ) 372,073 48,803) $ 3,410,709 $ 5,305,469 $ 8,716,178 136,506 1,261 ) 23,993 417,901 $ 9,293,317 $ 3,410,709 490 ) 835 ) 376,241 157,598 $ 3,943,223 $ 5,350,094		$ 12,978,673 259,345 ( 45,548 ) 94,195 ( 196,338) $ 13,090,327 $ 8,995,589 ( 39,348 ) - 750,450 ( 143,907) $ 9,562,784 $ 3,527,543 $ 13,090,327 119,630 ( 202,724 ) 46,005 628,022 $ 13,681,260 $ 9,562,784 ( 95,075 ) ( 714 ) 719,126 458,435 $ 10,644,556 $ 3,036,704		$ 4,704,251 112,639 ( 16,357 ) 39,887 ( 64,710) $ 4,775,710 $ 2,891,070 ( 13,420 ) ( 1,923 ) 314,093 ( 43,376) $ 3,146,444 $ 1,629,266 $ 4,775,710 197,736 ( 69,666 ) 57,700 220,256 $ 5,181,736 $ 3,146,444 ( 27,773 ) ( 2,100 ) 285,256 143,112 $ 3,544,939 $ 1,636,797	( ( ( ( ( ( ( (	$ 4,143,484 172,933 7,964 ) 44,949 63,926) $ 4,289,476 $ 2,910,091 7,383 ) 2,866 ) 231,619 45,928) $ 3,085,533 $ 1,203,943 $ 4,289,476 59,298 10,962 ) 42,260 198,545 $ 4,578,617 $ 3,085,533 8,302 ) 2,922 ) 252,426 142,381 $ 3,469,116 $ 1,109,501		$ 308,017 15,446 ( 25,207 ) 4,119 ( 4,300) $ 298,075 $ 195,495 ( 20,981 ) - 30,515 ( 579) $ 204,450 $ 93,625 $ 298,075 24,440 ( 13,339 ) 1,009 15,387 $ 325,572 $ 204,450 ( 12,693 ) - 28,671 10,518 $ 230,946 $ 94,626		$ 1,543,674 44,613 ( 6,570 ) 819 ( 20,824) $ 1,561,712 $ 1,251,329 ( 6,223 ) - 91,188 ( 18,452) $ 1,317,842 $ 243,870 $ 1,561,712 78,439 ( 44,261 ) 9,500 72,437 $ 1,677,827 $ 1,317,842 ( 34,835 ) - 80,972 60,683 $ 1,424,662 $ 253,165		$ 1,971,078 1,330,316 ( 4,748 ) ( 247,117 ) ( 56,852) $ 2,992,677 $ 2,992,677 $ 2,992,677 483,689 - ( 278,721 ) 148,378 $ 3,346,023 $ 3,346,023	( ( ( ( ( ( ( ( (	$ 35,467,930 2,020,790 106,780 ) 3,335 534,222) $ 36,851,053 $ 19,332,136 87,659 ) 5,608 ) 1,789,938 301,045) $ 20,727,762 $ 16,123,291 $ 36,851,053 1,099,738 342,213 ) 98,254 ) 1,700,926 $ 39,211,250 $ 20,727,762 179,168 ) 6,571 ) 1,742,692 972,727 $ 23,257,442 $ 15,953,808

• 42 -

Property, plant and equipment are depreciated on a straight-line basis over the following estimated useful lives:

g estimated useful lives:
Buildings
Main building of plant	50 years
Road construction	15 to 40 years
Others	3 to 50 years
Machinery and equipment	5 to 20 years
Warehouse equipment	5 to 15 years
Utilities equipment	5 to 15 years
Transportation equipment	5 to 8 years
Other equipment	3 to 20 years

XV. Lease agreements

(I) Right-of-use assets

Right-of-use assets
Carrying amount of right-of- use assets Land Buildings Other equipment Depreciation expense of right- of-use assets Land Buildings Other equipment	December 31,2024 $ 1,484,853 35,668 - $ 1,520,521 2024 $ 40,593 11,890 354 $ 52,837		December 31,2023
				$ 1,431,834 17,475 2,959 $ 1,452,268 2023
					$ 39,613 11,336 429 $ 51,378

(II) Lease liabilities

Lease liabilities
Carrying amount of lease liabilities Current Non-current	December 31,2024 $ 13,337 $ 21,502	December 31,2023
			$ 4,894 $ 16,172

The discount rate ranges for lease liabilities are as follows:

Land Buildings Other equipment	December 31,2024 3.66% 1.80%~3.66% 4.35%	December 31,2023
		3.66% 1.80%~3.66% 4.35%

• 43 -

• (III) Significant lease activities and terms

The Group leases land and buildings as plants and offices, with lease terms ranging from 2 to 50 years. Upon the termination of the lease term, the Group has no preferential purchase rights to the leased land and buildings, and it is agreed that the

Group shall not sublease or transfer all or part of the leased assets without the lessor's consent.

(IV) Other lease information

Other lease information
Short-term lease expenses Low-value asset lease expenses Variable lease payment expenses not included in the measurement of lease liabilities Total cash outflow from leases		2024 $ 28,487 $ 998 $ 1,241 $ 45,327		2023
				$ 34,061 $ 769 $ 1,335 $ 50,546

The Group elected to apply the recognition exemptions for office equipment leases that qualify as short-term leases and certain warehouse equipment leases that qualify as low-value asset leases, and does not recognize related right-of-use assets and lease liabilities for these leases.

XVI. Other assets

Other assets
Current Other assets Prepayments for suppliers Excess Business Tax paid Prepaid expenses Non-current Other assets Refundable deposits Long-term prepaid expenses Prepaid equipment payments	December 31,2024 $ 1,097,650 198,841 256,025 $ 1,552,516 $ 55,259 210,699 79,766 $ 345,724	December 31,2023
			$ 1,840,568 64,904 280,250 $ 2,185,722 $ 42,020 240,514 85,357 $ 367,891

• 44 -

XVII. Borrowings

(I) Short-term borrowings

Short-term borrowings
Discounted notes payable Discounted banker's acceptances (1) Unsecured borrowings Bank credit borrowings (2) Fixed-rate borrowings Floating-rate borrowings	December 31,2024 $ 1,289,141 4,228,396 $ 5,517,537 $ 3,590,609 1,926,928 $ 5,517,537	December 31,2023
			$ 1,068,720 3,132,340 $ 4,201,060 $ 2,409,683 1,791,377 $ 4,201,060

• (1) The interest rates for discounted notes payable as of December 31, 2024 and 2023, were 0.25% to 1.35% and 0.20% to 1.51%, respectively.

• (2) The interest rates for bank credit borrowings as of December 31, 2024 and 2023, were 1.52% to 3.25% and 2.36% to 3.50%, respectively.

• (3) For information on utilized and unutilized bank financing facilities, please refer to Note 31.

(II) Long-term borrowings

December 31, 2024 December 31, 2023

Unsecured borrowings Bank credit borrowings $ 400,000 $ 400,000 Revolving credit borrowings 13,638,572 13,670,112 - Less: Current portion ( 417,307 ) $ 14,038,572 $ 13,652,805

Borrowing details Annual interest rate 1.92%~3.15% 1.70%~3.25% Maturity date Successively due Successively due before November before November 2028 2028

XVIII. Corporate bonds payable

December 31, 2024 December 31, 2023 Domestic secured corporate bonds $ 3,000,000 $ 3,000,000 Less: Discount on corporate bonds ( 2,618 ) ( 3,636 ) $ 2,997,382 $ 2,996,364

• 45 -

The main conditions for issuance of each series of domestic secured corporate bonds are as follows:

Series	Issuanceperiod	Total issuance amount	Coupon rate	Principal and interest repayment method
Series 1 in 2018 Series 1 in 2022	December 2018 to December 2023 July 2022 to July 2027	$ 6,000,000 3,000,000	0.95% 1.80%	Principal repaid in a lump sum at maturity, interest paid annually. Principal repaid in a lump sum at maturity, interest paid annually.

XIX. Notes payable and accounts payable

Notes payable and accounts payable are mainly incurred from operations, with an average credit period of 30 days. The Group has a financial risk management policy in place to ensure that all payables are repaid within the pre-agreed credit terms.

XX. Other liabilities

XXI.

Other liabilities
Current Other payables Equipment payments payable Salaries and bonuses payable Interest payable Utilities payable Sales freight payable Others Other liabilities Contract liabilities Others Provisions Current Safety provision (1) Non-current Employee benefits (2)	December31,2024 $ 217,320 160,762 41,477 73,205 111,794 382,551 $ 987,109 $ 631,701 4,126 $ 635,827 December 31,2024 $ 188,774 $ 16,006	December31,2023
		$ 256,436 164,472 40,343 72,334 89,439 447,286 $ 1,070,310 $ 463,884 28,947 $ 492,831 December 31,2023
			$ 154,023 $ 14,196

• (I) The safety provision is accrued by the Group's subsidiaries in China in accordance with the regulations of the Ministry of Emergency Management of the People's Republic of China and related regulations. Enterprises that produce, store, or transport hazardous chemicals identified by the government determine the accrued amount for the current year based on the previous year's operating revenue, using a graduated declining rate method. This amount is then evenly accrued monthly and reversed when actual safety expenditures are incurred.

• 46 -

(II) The employee benefits provision is the estimated provision for employee pension calculated according to the Group's employee pension regulations. The present value of this long-term employee benefit obligation is calculated by a qualified actuary. XXII. Post-employment benefit plans (I) Defined contribution plans The Group in Taiwan adopts the pension system of the “Labor Pension Act”, which is a government-managed defined contribution pension plan. The Group monthly contributes an amount, equal to 6% of employees' monthly salaries, to individual accounts at the Bureau of Labor Insurance.

The employees of the Group's subsidiaries in China and Malaysia are members of government-operated retirement benefit plans in those regions. The subsidiaries are required to contribute a specific percentage of salary costs to the retirement benefit plans to fund the plans. The Group's obligation to these government-operated retirement benefit plans is limited to contributing the specific amounts. The pension expenses recognized by the Group under the defined contribution plans for 2024 and 2023 were NT$118,011 thousand and NT$113,233 thousand, respectively. (II) Defined benefit plans The Group in Taiwan adopts the pension system of the “Labor Standards Act”, which is a defined benefit pension plan. Employee pension benefits are calculated based on years of service and the average salary of the six months prior to approved retirement. Every month, the Group contributes an amount, equal to 2% of employees' total monthly salaries, to an employee retirement fund, which is deposited in a special account at the Bank of Taiwan in the name of the Supervisory Committee of Labor Retirement Reserve. Before the end of the year, if the estimated balance of the special account is insufficient to pay the estimated pension benefits for employees who are expected to meet the retirement conditions in the following year, the difference will be contributed in one lump sum before the end of March of the following year. The special account is managed by the Bureau of Labor Funds, Ministry of Labor, and the Group has no right to influence the investment management strategy.

The amounts of the defined benefit plans included in the consolidated balance

sheet are as follows:

sheet are as follows:
Present value of defined benefit obligations Fair value of plan assets Net defined benefit liabilities	December 31,2024 $ 452,583 (260,351) $ 192,232	December 31,2023
	(	(	$ 524,583 288,762) $ 235,821

• 47 -

The changes in net defined benefit liabilities are as follows:

Balance at January 1, 2023 Current service cost Interest expense (income) Recognized in profit or loss Remeasurements Return on plan assets (excluding amounts included in net interest) Actuarial gains and losses - changes in financial assumptions Actuarial gains and losses - experience adjustments Recognized in other comprehensive income Employer contributions Benefit payments Balance at December 31, 2023 Balance at January 1, 2024 Current service cost Interest expense (income) Recognized in profit or loss Remeasurements Return on plan assets (excluding amounts included in net interest) Actuarial gains and losses - changes in financial assumptions Actuarial gains and losses - experience adjustments Recognized in other comprehensive income Employer contributions Benefit payments Balance at December 31, 2024	Present value of defined benefit obligations $ 535,372 2,921 6,008 8,929 - ( 3,662 ) 3,801 139 - ( 19,857) $ 524,583 $ 524,583 2,587 6,558 9,145 - ( 3,131 ) 4,214 1,083 - ( 82,228) $ 452,583	Fair value of plan assets ($ 299,482) - ( 3,369) ( 3,369) ( 3,091 ) - - ( 3,091) ( 2,677 ) 19,857 ($ 288,762) ($ 288,762) - ( 3,626) ( 3,626) ( 26,021 ) - - ( 26,021) ( 2,520 ) 60,578 ($ 260,351)	Net defined benefit liabilities
			$ 235,890 2,921 2,639 5,560 ( 3,091 ) ( 3,662 ) 3,801 ( 2,952) ( 2,677 ) - $ 235,821 $ 235,821 2,587 2,932 5,519 ( 26,021 ) ( 3,131 ) 4,214 ( 24,938) ( 2,520 ) ( 21,650) $ 192,232

The Group is exposed to the following risks from the pension system of the “Labor Standards Act”:

1. Investment risk: The Bureau of Labor Funds, Ministry of Labor, invests the labor pension fund in domestic and foreign equity and debt securities and bank

2. 48 -

deposits through self-management and entrusted management. However, the amount of income of plan assets that the Group allocate is calculated based on the yield not lower than the local bank's two-year deposit interest rate.

1. Interest rate risk: A decrease in the interest rate of government bonds or corporate bonds will increase the present value of defined benefit obligations, but the return on debt investments in plan assets will also increase. Such bonds have a partial offsetting effect on net defined benefit liabilities.

2. Salary risk: The present value of defined benefit obligations is calculated with reference to the future salaries of plan members. Therefore, an increase in plan members' salaries will increase the present value of defined benefit obligations.

The present value of the Group's defined benefit obligations is calculated by a qualified actuary. The significant assumptions at the measurement date are as follows:

Discount rate Expected rate of salary increase	December 31,2024 1.375% 3.000%	December 31,2023
		1.250% 3.000%

If significant actuarial assumptions change reasonably and plausibly, the amounts by which the present value of defined benefit obligations would increase (decrease) under the condition that all other assumptions remain unchanged are as follows:

follows:
Discount rate Increase by 0.25% Decrease by 0.25% Expected rate of salary increase Increase by 0.25% Decrease by 0.25%	December 31,2024 ($ 6,150) $ 6,300 $ 6,099 ($ 5,984)	December 31,2023
	( (	( (	$ 7,193) $ 7,369 $ 7,128 $ 6,995)

Because actuarial assumptions may be correlated, it is unlikely that only a single assumption will change. Therefore, the above sensitivity analysis may not reflect the actual changes in the present value of defined benefit obligations.

Expected contributions within one year Average duration of defined benefit obligations	December 31,2024 $ 2,404 5.9 years	December 31,2023	December 31,2023
			$ 2,659 5.9 years

• 49 -

XXIII. Equity

(I) Ordinary share capital

Ordinary share capital
Authorized shares (thousand shares) Authorized capital Issued and fully paid shares (thousand shares) Issued capital Capital collected in advance	December 31,2024 2,000,000 $ 20,000,000 1,367,719 $ 13,677,186 $ 1,751	December 31,2023
			2,000,000 $ 20,000,000 1,363,577 $ 13,635,771 $ 11,726

The par value of each issued ordinary share is NT$10, and each share has one voting right and the right to receive dividends.

The authorized capital includes 100,000 thousand shares reserved for the

issuance of employee stock options. The remaining unissued shares will be issued in tranches by the Board of Directors as needed, some of which may be preferred shares.

The changes in the Company's share capital were due to employees exercising stock options. The advance receipts of share capital were the advance receipts for employee stock options exercised. The Company completed the change registration on February 3, 2025.

(II) Capital surplus

Capital surplus
Available for offsetting a deficit, issuing cash dividends, or capitalizing (Note) Shares issued at a premium Donated assets Transfer from employee stock option exercise and forfeiture Treasury stock transactions Available for offsetting losses Unclaimed dividends of shareholders Not available for any purpose Employee stock options	December 31,2024 $ 764,382 19,835 357,470 218,846 4,106 8,826 $ 1,373,465	December 31,2023
			$ 770,594 19,835 347,986 218,846 3,266 18,310 $ 1,378,837

Note: This type of capital surplus can be used to offset a deficit and, when there are

no deficit, to issue cash dividends or capitalize, provided that the amount

capitalized each year is limited to a certain percentage of the paid-in capital.

(III) Retained earnings and dividend policy

• 50 -

According to the Company's Articles of Incorporation regarding the errnings distribution policy, after paying taxes and offsetting prior years' accumulated losses from the current year's earnings, 10% should first be set aside as legal reserve and appropriated or reversed as special reserve according to relevant regulations. The Company may then appropriate or reverse a certain amount as special reserve according to the relevant regulations. The residual earnings, plus the accumulated undistributed earnings, may be distributed to shareholders according to the distribution plan proposed by the Board of Directors. When the distribution is made in the form of new shares, the distribution proposal shall be submitted to the shareholders' meeting for resolution before distribution. When the distribution is made in cash, the Board of Directors shall be authorized to resolve the distribution by a super majority vote and report it to the shareholders' meeting.

The Company's Articles of Incorporation regarding the distribution of employee and director compensation are described in Note 25(7), Employee and director compensation.

The legal reserve shall be appropriated until its balance reaches the total paid-in capital. The legal reserve may be used to offset a deficit. When there are no deficits, the portion of the legal reserve exceeding 25% of the total paid-in capital may be capitalized or distributed as cash dividends. The Board of Directors is also authorized to make a supermajority resolution to distribute all or part of the aforementioned legal reserve and capital surplus in cash and report to the shareholders' meeting.

The Company's earnings distribution plans for 2023 and 2022 are as follows:

Legal reserve Cash dividends Cash dividend per share (NT$)		2023 $ - $ 265,511 $ 0.2		2022
				$ - $ 263,583 $ 0.2

The above cash dividends were resolved by the Board of Directors on March 6, 2024 and March 6, 2023, respectively.

The Company's Board of Directors resolved on March 7, 2025, to distribute cash dividends of NT$199,412 thousand from capital surplus, at NT$0.15 per share, after the shareholders' meeting approves the proposal to offset a deficit with the legal reserve for 2024 on May 28, 2025.

• 51 -

(IV) Special reserve

When the Group adopted IFRS for the first time, the amount of unrealized revaluation gains transferred to retained earnings was NT$341,773 thousand, and a special reserve of the same amount was appropriated.

The special reserve appropriated for land can be reversed upon disposal or reclassification.

• (V) Other equity interests

• Exchange differences arising from translation of financial statements of foreign

operations

perations
			2024			2023
Beginning balance	( $		735,830 )	( $		401,613 )
Arising during the year
Exchange differences of foreign
operations			1,416,787	(		334,257 )
Related income tax	(		8,280)			40
Ending balance		$	672,677	($		735,830)
realized profit and losses of financial	assets measured at FVTOCI
			2024			2023
Beginning balance		$	11,356,839		$	6,624,036
Arising during the year
Unrealized gains or losses -
equity instruments			614,140			4,735,286
Share of associates accounted
for using the equity method	(		1,915 )	(		158 )
Cumulative gains or losses from
disposal of equity instruments
transferred to retained earnings	(		21,404)	(		2,325)
Ending balance		$	11,947,660		$	11,356,839

1. Unrealized profit and losses of financial assets measured at FVTOCI

(VI) Treasury stock

Treasury stock
Number of shares as of January 1, 2023 Increase during the year Number of shares as of December 31, 2023 Number of shares as of January 1, 2024 Increase during the year Number of shares as of December 31, 2024	Reason for repurchase
	Transfer of shares to employees (thousand shares)
		38,665 - 38,665 38,665 - 38,665

• 52 -

The treasury shares held by the Company shall not be pledged and do not have the right to receive dividends or voting rights, as stipulated by the Securities and Exchange Act.

XXIV. Revenue

Revenue
Product sales revenue Logistics and warehousing revenue		2024 $ 73,056,122 264,158 $ 73,320,280		2023
				$ 72,928,555 267,491 $ 73,196,046

XXV. (I) (II) (III)	Net loss for the year The net loss for the year includes the following items: Interest Income 2024 Bank deposits $ 77,426 Other income 2024 Operating lease rental income $ 82,393 Dividend income 397,414 Government grant income (Note 29) 68,352 Other income 65,776 $ 613,935 Other gains and losses 2024 Gains and losses on financial assets and liabilities Financial assets mandatorily measured at FVTPL $ 253 Net foreign currency exchange losses ( 155,636 ) Gains (losses) on disposal of property, plant, and equipment 621 Bank processing fees (including corporate bonds payable) ( 27,215 ) Others ( 18,239) ($ 200,216)		2023
			$ 53,319 2023
			$ 81,159 409,726 65,074 52,725 $ 608,684 2023
		$ 425 ( 78,361 ) ( 12,692 ) ( 56,766 ) ( 72,390) ($ 219,784)

• 53 -

(IV) Financial costs

(IV) Financial costs
Bank loan interest (including bonds payable) Interest on lease liabilities (V) Depreciation and amortization Property, plant and equipment Right-of-use assets Computer software Long-term prepaid expenses Total Summary of depreciation expenses by function Operating costs Operating expenses Other losses Summary of amortization expenses by function Operating costs Operating expenses (VI) Employee benefits expenses Short-term employee benefits Post-employment benefits (Note 22) Defined contribution plans Defined benefit plans Subtotal of post- employment benefits Share-based payments Equity settlement Other employee benefits Total employee benefit expenses Summary by function Operating costs Operating expenses		2024 $ 528,246 1,001 $ 529,247 2024 $ 1,742,692 52,837 7,636 160,350 $ 1,963,515 $ 1,532,716 249,649 13,164 $ 1,795,529 $ 158,992 8,994 $ 167,986 2024 $ 1,324,323 118,011 5,519 123,530 - 107,819 $ 1,555,672 $ 975,201 580,471 $ 1,555,672		2023
				$ 401,232 703 $ 401,935 2023
				$ 1,789,938 51,378 7,510 186,327 $ 2,035,153 $ 1,582,847 244,824 13,645 $ 1,841,316 $ 186,199 7,638 $ 193,837 2023
				$ 1,256,771 113,233 5,560 118,793 3,782 103,187 $ 1,482,533 $ 931,576 550,957 $ 1,482,533

• 54 -

(VII) Employee and director compensation

The Company allocates employee and director compensation at no less than 1% and no more than 1% of the current year's profit after deducting accumulated losses, respectively.

No employee or director compensation was accrued for 2024 and 2023 due to pre-tax losses.

For information on employee and director compensation resolved by the

Company's Board of Directors, please refer to the “Market Observation Post System” on the Taiwan Stock Exchange.

• (VIII) Foreign currency exchange gains and losses

Total foreign currency exchange gains Total foreign currency exchange losses Net loss		2024 $ 380,987 536,623) $ 155,636)		2023
	( (		( (	$ 450,412 528,773) $ 78,361)

XXVI. Income tax

• (I) Income tax recognized in profit or loss

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

Current income tax Arising during the year Adjustments of prior years Deferred income tax Arising during the year Income tax (benefit) expense recognized in profit or loss		2024 $ 313,221 5,758) 307,463 $ 637,185) $ 329,722)		2023
	( ( (		(	$ 106,780 41,705 148,485 $ 22,195) $ 126,290

• 55 -

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

follows:

follows:
		2024		2023
Pre-tax net loss from continuing
operations	($ 2,713,577)		($	156,536)
Income tax benefit calculated at
the statutory tax rate (25%) on
pre-tax net loss	( $ 678,394 )		( $	39,134 )
Permanent differences		453,438		241,856
Tax-exempt income	(	79,483 )	(	81,945 )
Effect of different tax rates for
companies operating in other
jurisdictions	(	19,525 )	(	36,192 )
Adjustments of prior years'
income tax	(	5,758)		41,705
Income tax (benefit) expense
recognized in profit or loss	($ 329,722)		$	126,290

The tax rate applicable to the Group's subsidiaries in China is 25%; the tax amounts in other jurisdictions are calculated based on the applicable tax rates in those jurisdictions.

• (II) Income tax directly recognized in equity

Income tax directly recognized in equity
2024 Current income tax expense Disposal of investments in equity instruments at FVTOCI $ 1,224 Income tax recognized in other comprehensive income 2024 Deferred income tax expense Arising during the year Exchange differences of foreign operations $ 8,280 Remeasurements of defined benefit plans 4,990 13,270 Income tax expense recognized in other comprehensive income $ 13,270		2023
		$ - 2023
	( $ 40 ) 590 550 $ 550

(III) Income tax recognized in other comprehensive income

• 56 -

(IV) Current income tax assets and liabilities

Income tax assets for the current period Refundable tax Current income tax liabilities Income tax payable	December 31,2024 $ 33,699 $ 80,186	December 31,2023	December 31,2023
			$ 34,991 $ 49,908

• (V) Deferred tax assets and liabilities

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

2024

2024
Deferred tax assets Temporary differences Inventory loss allowance Exchange differences of foreign operations Defined benefit pension plans Allowance for doubtful accounts Right-of-use assets Others Loss carryforwards Deferred tax liabilities Temporary differences Overseas equity investment income Land revaluation gains Others		Beginning balance $ 39,323 22,860 47,150 2,451 77,122 35,596 224,502 1,178,934 $ 1,403,436 $ 118,990 99,828 49,827 $ 268,645	Recognized in profit or loss $ 28,089 - ( 3,730 ) 419 ( 2,166 ) 8,705 31,317 601,683 $ 633,000 $ 2,920 - ( 7,105) ($ 4,185)	Recognized in other comprehensive income $ - ( 8,280 ) ( 4,990 ) - - - ( 13,270 ) - ($ 13,270) $ - - - $ -		Exchange differences $ 2,229 - - 132 3,988 1,548 7,897 68,143 $ 76,040 $ - - 3,226 $ 3,226		Ending balance
								$ 69,641 14,580 38,430 3,002 78,944 45,849 250,446 1,848,760 $ 2,099,206 $ 121,910 99,828 45,948 $ 267,686

• 57 -

2023

2023
Deferred tax assets Temporary differences Inventory loss allowance Exchange differences of foreign operations Defined benefit pension plans Allowance for doubtful accounts Right-of-use assets Others Loss carryforwards Deferred tax liabilities Temporary differences Overseas equity investment income Land revaluation gains Others		Beginning balance $ 75,118 22,820 50,920 7,083 - 27,792 183,733 1,234,980 $ 1,418,713 $ 117,470 99,828 65,360 $ 282,658	Recognized in profit or loss ( $ 35,264 ) - ( 3,180 ) ( 4,603 ) 78,702 8,300 43,955 ( 35,990) $ 7,965 $ 1,520 - ( 15,750) ($ 14,230)	Recognized in other comprehensive income $ - 40 ( 590 ) - - - ( 550 ) - ($ 550) $ - - - $ -	Exchange differences ( $ 531 ) - - ( 29 ) ( 1,580 ) ( 496) ( 2,636 ) ( 20,056) ($ 22,692) $ - - 217 $ 217		Ending balance
							$ 39,323 22,860 47,150 2,451 77,122 35,596 224,502 1,178,934 $ 1,403,436 $ 118,990 99,828 49,827 $ 268,645

(VI) Information on unused loss carryforwards

The information on loss carryforwards as of December 31, 2024, is as follows:

Last deductible

	Last deductible
Unused balance $ 338,367 223,746 2,540,069 1,403,995 2,888,862 $ 7,395,039	year
	2025 2026 2027 2028 2029

(VII) Unrecognized deferred tax liabilities related to investments

As of December 31, 2024 and 2023, the taxable temporary differences related to investments in subsidiaries that were not recognized as deferred tax liabilities were NT$1,584,243 thousand and NT$2,034,048 thousand, respectively.

(VIII) Domestic income tax approval

tax approval
The Company Taiwan Union International Wei Chen Union Venture Capital	Approved Ye ar
	2022 2022 2022 2022

• 58 -

(IX) Pillar Two income tax legislation

In November and December 2023, the governments of Vietnam and Malaysia, where UPCM Trading (Vietnam) and UPC Chemicals (Malaysia) Sdn. Bhd are registered, respectively, enacted the Pillar Two income tax legislation, which became effective on January 1, 2024 and January 1, 2025, respectively. As UPCM Trading (Vietnam) had a pre-tax loss at the end of the reporting period and the legislation for UPC Chemicals (Malaysia) Sdn. Bhd had not yet taken effect as of the balance sheet date, the Group had no related impact on current income tax.

XXVII. Loss per share

Loss per share
Basic loss per share		2024 ($ 1.79)	Unit: NT$ per share 2023 ($ 0.21)

The net loss and weighted average number of ordinary shares used to calculate loss per share are as follows:

Net loss for the year

Net loss for the year
Net loss used to calculate basic loss per share Number of shares Weighted average number of ordinary shares used to calculate basic loss per share		2024 2023 $ 2,383,855) ($ 282,826) Unit: thousand shares 2024 2023 1,328,274 1,320,440
	(

XXVIII. Share-based payment agreements

Employee stock option plan - stock warrants

The Company issued 40,000 units of employee stock options on August 15, 2019, with each unit entitling the holder to purchase one thousand ordinary shares. The grant recipients include employees of the Company and its subsidiaries who meet certain conditions. The term of the stock options is six years, and the holders can exercise 50%, 75%, and 100% of the options after two, three, and four years from the issuance date, respectively.

The information on employee stock options is as follows:

• 59 -

Employee stock options Outstanding at the beginning of the year Exercised during the year Forfeited during the year Outstanding at the end of the year Exercisable at the end of the year	2024 Unit Weighted average exercise price (NT$) 6,621 $ 8.5 ( 2,968 ) 8.5 - 8.5 3,653 8.5 3,653 8.5	2023	2023
	Unit 6,621 ( 2,968 ) - 3,653 3,653	Unit 16,525 ( 9,690 ) ( 214) 6,621 6,621	Weighted average exercise price (NT$)
			$ 8.5 8.5 8.5 8.5 8.5

The employee stock options granted by the Company in August 2019 were valued using the Black-Scholes-Merton model. The inputs used in the valuation model are as follows:

follows:
Share price at grant date Exercise price (Note) Expected volatility Term Expected dividend yield Risk-free interest rate	August 2019
	NT$ 9.90 NT$ 9.90 26.01%, 25.67%, and 25.03% 4 years, 4.5 years, and 5 years - 0.52%, 0.53%, and 0.54%

The Company calculated the fair value of the employee stock options granted on August 15, 2019, which will vest in installments (two, three, and four years from the issuance date), based on the grant date. The compensation cost recognized in 2023 was NT$3,782 thousand.

Note: The exercise price is adjusted according to the formula specified in the issuance regulations.

XXIX. Government grants

In 2024 and 2023, the Group received financial support subsidies of NT$55,157 thousand and NT$52,130 thousand, respectively, in China, which are immediate financial support granted by local governments based on investment agreements.

In 2017, the Group received air pollution control subsidies of CNY 2,972 thousand in China, which were recorded as long-term deferred income and are being transferred to other income over the useful lives of the related assets. Amounts of NT$1,289 thousand and NT$1,265 thousand were transferred to other income in 2024 and 2023,

• 60 -

respectively. As of December 31, 2024 and 2023, the unamortized long-term deferred income translated into NTD was NT$2,774 thousand and NT$3,876 thousand, respectively.

In 2017, 2016, and 2014, the Group received special subsidies of CNY 20,000 thousand, CNY 3,250 thousand, and CNY 26,400 thousand from Panjin City, Liaoning Province, and strategic emerging industry development subsidies from Sichuan Province, respectively, specifically to subsidize Panjin Union Logistics and Nanchong Unicizers for the purchase and installment of equipment. These amounts were recorded as long-term deferred income and are being transferred to other income over the useful lives of the related assets after the installment is completed. Amounts of NT$11,906 thousand and NT$11,679 thousand were transferred to other income in 2024 and 2023, respectively. As of December 31, 2024 and 2023, the total unamortized long-term deferred income translated into NTD was 137,143 thousand and 141,804 thousand, respectively.

XXX. Capital risk management

The Group manages capital to ensure that each entity within the Group can continue as a going concern by optimizing the balance of debt and total assets to maximize shareholder returns. There is no expected significant change in the short term based on the Group's overall strategy.

The Group's capital structure consists of net debt (total liabilities less cash and cash equivalents and financial assets measured at amortized cost) / net assets (total assets less cash and cash equivalents and financial assets measured at amortized cost).

The Group's senior management reviews the Group's capital structure quarterly, taking into account the cost of each type of capital and related risks. Based on senior management’s suggestions, the Group will balance its overall capital structure through dividend policies and the issuance of new debt or repayment of old debt.

The Group's target net debt ratio (net debt to net assets) is 50%.

• 61 -

Net debt ratio

The net debt ratio at the balance sheet date is as follows:

Total liabilities Cash and cash equivalents (Note) Net liabilities Total assets Cash and cash equivalents (Note) Net assets Net debt ratio	December 31,2024 $ 27,605,216 ( 5,001,063) $ 22,604,153 $ 57,096,355 ( 5,001,063) $ 52,095,292 43%	December 31,2023	December 31,2023
	( (	( (	$ 25,607,138 3,542,346) $ 22,064,792 $ 55,656,669 3,542,346) $ 52,114,323 42%

Note: Cash and cash equivalents include financial assets measured at amortized cost.

XXXI. Financial instruments

• (I) Fair value information-financial instruments not measured at fair value December 31, 2024

December 31, 2024
Financial liabilities Financial liabilities measured at amortized cost - Domestic corporate bonds payable December 31, 2023 Financial liabilities Financial liabilities measured at amortized cost - Domestic corporate bonds payable		Carrying amount				Fair value
				Level 1		Level 2		Level 3		Total
		$ 2,997,382 Carrying amount		$ -						$ 2,999,909
				Level 1		Level 2		Level 3		Total
		$ 2,996,364		$ -		$ 2,999,919		$ -		$ 2,999,919

Except as described above, the Group's management believes that the carrying amounts of financial assets and liabilities not measured at fair value approximate their fair values or that their fair values cannot be reliably measured.

• 62 -

(II) Fair value information-financial instruments measured at fair value on a recurring basis

1. Fair value hierarchy

December 31, 2024

December 31, 2024
Financial assets measured at FVTOCI Equity instrument investments Domestic stocks listed on TWSE/TPEx and the emerging stock market Domestic stocks not listed on TWSE/TPEx Foreign unlisted stocks Total December 31, 2023 Financial assets at FVTPL Fund beneficiary certificates Financial assets measured at FVTOCI Equity instrument investments Domestic stocks listed on TWSE/TPEx and the emerging stock market Domestic stocks not listed on TWSE/TPEx Foreign unlisted stocks Total		Level 1 $ 16,582,149 - - $ 16,582,149 Level 1 $ 6,852 $ 15,763,538 - - $ 15,763,538		Level 2 $ - - - $ - Level 2 $ - $ - - - $ -		Level 3 $ - 772,744 - $ 772,744 Level 3 $ - $ - 754,795 2 $ 754,797		Total
								$ 16,582,149 772,744 - $ 17,354,893 Total
								$ 6,852 $ 15,763,538 754,795 2 $ 16,518,335

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

• 63 -

• Reconciliation of Level 3 fair value measurements of financial instruments

2024

Financial assets measured at FVTOCI Equity instruments Financial assets of financial assets Beginning balance $ 754,797 Recognized in other comprehensive income (unrealized gains or losses on financial assets measured at FVTOCI) ( 18,547 ) Purchases 50,008 Capital returned for capital reduction ( 13,514 ) Ending balance $ 772,744 2023 Financial assets measured at FVTOCI Equity instruments Financial assets of financial assets Beginning balance $ 671,507 Recognized in other comprehensive income (unrealized gains or losses on financial assets measured at FVTOCI) 106,360 Disposals ( 6,745 ) Capital returned for capital reduction ( 16,325 ) Ending balance $ 754,797

1. Valuation techniques and inputs for level 2 fair value measurements

Financial instrument category Valuation techniques and inputs Financial liabilities - Fair value is calculated based on the weighted Domestic corporate bonds average hundred-dollar price reported by payable the Taipei Exchange on the reporting date.

1. Valuation techniques and inputs for level 3 fair value measurements

Domestic and foreign unlisted equity investment fair value is primarily estimated using the asset-based approach. The asset-based approach is mainly

used for venture capital companies, referencing their net asset value to assess fair value.

(III) Financial instrument type

December 31, 2024 December 31, 2023 Financial assets Financial assets at FVTPL Financial assets $ - $ 6,852

• 64 -

mandatorily measured at FVTPL Financial assets measured at amortized cost (Note 1) Equity instrument investments measured at FVTOCI Financial liabilities Financial liabilities measured at amortized cost (Note 2)	December 31,2024 10,291,303 17,354,893 25,888,987	December 31,2023
		8,560,128 16,518,335 24,060,496

Note 1: The balance includes cash and cash equivalents, financial assets measured at amortized cost, notes receivable, trade receivable, other receivables, and refundable deposits.

Note 2: The balance includes short-term borrowings, notes payable, accounts payable, other payables, current portion of long-term liabilities, bonds payable, long-term borrowings, and guarantee deposits received.

(IV) Financial risk management objectives and policies

The Group's primary financial instruments are equity investments, receivables, payables, and borrowings. the Group's financial management department provides services to various business units, coordinating domestic and international financial market operations. It monitors and manages financial risks related to corporate operations through internal risk reports that analyze exposures based on risk levels and scope. These risks include market risk (including foreign exchange risk, interest rate risk, and other price risk), credit risk, and liquidity risk.

1. Market risk

The Group's operating activities expose it to foreign exchange rate change risk and interest rate change risk.

There have been no changes in the Group's market risk exposures related to financial instruments or in the methods used to manage and measure these exposures.

(1) Foreign exchange risk

The Company and several subsidiaries engage in foreign currencydenominated sales and purchase transactions, resulting in exposure to foreign exchange change risk. Approximately 15% of the Group's sales and 30% of its costs are denominated in currencies other than the functional currencies of the entities of the Group in which the transactions take place.

• 65 -

The carrying amounts of significant foreign currency-denominated monetary assets and liabilities as of the balance sheet date (including foreign currency-denominated monetary items eliminated in the consolidated financial statements) are disclosed in Note 36.

Sensitivity analysis

The Group is primarily affected by fluctuations in the US dollar (USD) exchange rate.

The following table shows the sensitivity analysis of the Group when the exchange rates of the NTD, CNY, and MYR increase or decrease by 3% against the USD. The 3% sensitivity rate is used for reporting foreign exchange risk to senior management and represents management's assessment of the reasonably possible range of foreign exchange rate changes. The sensitivity analysis includes only outstanding foreign currency monetary items with their period-end translation by a 3% change in exchange rates adjusted. Positive numbers in the table below indicate the decrease in pre-tax net loss when the NTD, CNY, and MYR appreciate by 3% against the USD; the impact on pre-tax net loss when these currencies depreciate by 3% against the USD would be equal in amount but negative.

in amount but negative.
Profit or loss	Impact of USD
	2024 $ 68,688	2023
		$ 51,098

The above impacts primarily arise from USD-denominated receivables, payables, and borrowings outstanding at the balance sheet date.

The Group's sensitivity to exchange rates has increased in the current period, mainly due to an increase in period-end USD payables, resulting in a higher net foreign currency liability.

(2) Interest rate risk

The Group's interest rate exposure arises from borrowing funds at both fixed and floating rates. The Group periodically evaluates whether to use hedging instruments to align its interest rate views with established risk appetite, ensuring the most cost-effective hedging strategy.

• 66 -

The carrying amounts of financial assets and liabilities exposed to interest rate risk at the balance sheet date are as follows:

December 31, 2024 December 31, 2023 Fair value interest rate risk - Financial assets $ 178,977 $ 373,306 - Financial liabilities 17,070,443 16,305,287 Cash flow interest rate risk - Financial liabilities 5,517,887 4,983,315

The Group is exposed to fair value interest rate risk due to its fixedrate bank borrowings and bonds payable. The Group holds floating-rate borrowings as the target to mitigate fair value interest rate risk.

The Group is exposed to cash flow interest rate risk due to its floating-rate bank borrowings. These situations align with the Group's policy of maintaining a certain level of floating-rate borrowings to mitigate fair value interest rate risk.

Sensitivity analysis

The following sensitivity analysis is determined based on the interest rate exposures of non-derivative instruments at the balance sheet date. For floating-rate liabilities, the analysis assumes that the outstanding liabilities at the balance sheet date were outstanding throughout the reporting period. The change rate used for reporting interest rates to senior management is an increase or decrease of 50 basis points, representing management's assessment of the reasonably possible range of interest rate changes.

If interest rates increase/decrease by 50 basis points, the Group's pre-tax net loss for 2024 and 2023 would increase/decrease by NT$27,589 thousand and NT$24,917 thousand, respectively, assuming all other variables remain constant.

The Group's sensitivity to interest rates has increased compared to the same period last year, primarily due to an increase in the amount of floating-rate borrowings in the current period.

• (3) Other price risks

The Group is exposed to equity price risk due to its holdings of fund beneficiary certificates and equity securities investments. These equity

• 67 -

investments are primarily strategic investments and are not held for trading; the Group does not actively trade these investments. The Group's equity price risk is concentrated in domestic strategic equity instrument investments.

Sensitivity analysis

The following sensitivity analysis is based on the equity price exposures at the balance sheet date.

If equity prices increase/decrease by 5%, the after-tax profit or loss for 2023 would increase/decrease by NT$343 thousand due to changes in the fair value of financial assets at FVTPL. The after-tax other comprehensive income for 2024 and 2023 would increase/decrease by NT$867,745 thousand and NT$825,917 thousand, respectively, due to changes in the fair value of financial assets measured at FVTOCI.

The Group's sensitivity to price risk has increased compared to the same period last year, primarily due to an increase in the market value of equity securities investments in the current year.

1. Credit risk

Credit risk is the risk of financial loss to the Group if a counterparty fails to meet its contractual obligations. As of the balance sheet date, the maximum credit risk exposure from the counterparty’s default, which could result in financial loss, primarily arises from the carrying amounts of financial assets recognized in the consolidated balance sheet.

The Group's policy is to transact only with reputable counterparties. Before accepting new customers, the Group assesses the credit quality of potential customers and sets credit limits through internal credit checks and relevant sales management departments. Customer credit limits and ratings are reviewed twice a year.

Additionally, the Group individually reviews the recoverable amounts of receivables at the balance sheet date to ensure that appropriate impairment losses are recognized for unrecoverable receivables.

The Group's trade receivables are from a large number of customers, and the Group has no significant credit exposure to any single counterparty or group of counterparties with similar characteristics. At no time during 2024 and

• 68 -

2023 did the concentration of credit risk from any counterparty exceed 5% of total monetary assets.

The Group's credit risk by geographic region is primarily concentrated in China, accounting for approximately 58% and 65% of total receivables as of December 31, 2024 and 2023, respectively.

3.

Liquidity risk

The Group manages and maintains sufficient cash and cash equivalents to support operations and mitigate the impact of cash flow fluctuations. The Group's management monitors the use of bank financing limits and ensures compliance with loan agreement terms.

Bank borrowings are a significant source of liquidity for the Group. The Group's unused financing limits as of December 31, 2024 and 2023, are disclosed in the (2) Financing limits section below.

(1) Liquidity and interest rate risk table for non-derivative financial liabilities The remaining contractual maturity analysis for non-derivative financial liabilities is prepared based on the undiscounted cash flows of financial liabilities, based on the earliest date the Group could be required to repay. Therefore, bank borrowings that the Group could be required to repay immediately are included in the earliest period in the table, regardless of the probability of the bank immediately exercising this right. The maturity analysis of other non-derivative financial liabilities is prepared based on the agreed repayment dates.

December 31, 2024 Non-derivative financial liabilities Non-interest- bearing liabilities Lease liabilities Floating-rate instruments Fixed-rate instruments December 31, 2023 Non-derivative financial		Within 3 months $ 2,462,851 3,514 1,621,028 2,073,691 $ 6,161,084		3 months to 1 year $ 1,019,596 10,446 314,135 1,534,510 $ 2,878,687		1 to 5years $ - 19,207 3,759,882 14,037,431 $ 17,816,520		Over 5years
								$ - 3,119 - - $ 3,119

• 69 -

liabilities Non-interestbearing liabilities $ 2,798,910 $ 144,743 $ - $ - Lease liabilities 1,358 4,078 12,604 4,939 Floating-rate instruments 988,731 1,239,706 2,861,597 - Fixed-rate instruments 1,814,883 606,727 14,440,240 - $ 5,603,882 $ 1,995,254 $ 17,314,441 $ 4,939

• (2) Financing limits

Financing limits
Unsecured bank financing limits - Utilized amount - Unutilized amount	December 31,2024 $ 19,556,109 27,869,772 $ 47,425,881	December 31,2023
			$ 18,271,172 26,236,892 $ 44,508,064

• (V) Information on the transfer of financial assets

In 2024 and 2023, the Group discounted some bankers’ acceptance notes receivable issued by banks in China. The contracts stipulate that if the bankers’ acceptance notes receivable cannot be collected at maturity, the transferee has the right to request the Group to settle the outstanding balance. Therefore, the Group did not transfer the significant risks and rewards of these bankers’ acceptance notes receivable and continues to recognize them.

As of December 31, 2024 and 2023, the carrying amounts of the transferred bankers’ acceptance notes receivable that were not derecognized were NT$1,289,141 thousand and NT$1,068,720 thousand, respectively (including NT$572,363 thousand and NT$694,252 thousand of inter-subsidiary acceptance notes eliminated in the consolidation), and the carrying amounts of the related liabilities were NT$1,289,141 thousand and NT$1,068,720 thousand, respectively.

XXXII. Related Party Transactions

Transactions, account balances, revenues, and expenses between the Company and its subsidiaries (which are related parties of the Company) are fully eliminated upon consolidation and are therefore not disclosed in this note. Transactions between the Group and other related parties are as follows:

• (I) Related party names and relationships

Related party name Relationship with the Group Same Chairman/Investor with significant Lien Hwa Industrial Holdings influence Lien Hwa Property Development Subsidiary of Lien Hwa Industrial

• 70 -

(II)

Corporation Linde LienHwa Industrial Gases Co., Ltd. Linde LienHwa Industrial Gases Co., Ltd. (Suzhou) Asia Union Electronic Chemical Corp. (AUECC) Harbinger Venture Management Co., Ltd. (Harbinger Venture Management) Lienhwa United LPG

Purchases

Holdings

Associate of Lien Hwa Industrial Holdings Associate of Linde LienHwa Industrial Gases Co., Ltd. Associate of Linde LienHwa Industrial Gases Co., Ltd.

Same Chairman The Company is a director of the company

Purchases
Relatedpartycategory Associates with investors with significant influence		2024 $ 35,677		2023
				$ 31,435

• 71 -

(III) Lease agreements (lessee)

Lease agreements (lessee)	Lease agreements (lessee)
Account item Related party category / Name Lease liabilities Associates with investors with significant influence Lien Hwa Property Development Corporation Relatedpartycategory/ Name Interest expense Associates with investors with significant influence Lien Hwa Property Development Corporation		December 31,2024 $ - 20,838 $ 20,838 2024 $ 108 480 $ 588	December 31,2023 $ 2,995 2,199 $ 5,194 2023
				$ 2,995 2,199 $ 5,194 2023
				$ 83 134 $ 217

(IV) Lease agreements (lessor) Operating lease out

The total future lease payments to be received are summarized as follows:

Relatedpartyname AUECC Lienhwa United LPG	December 31,2024 $ 9,052 3,969 $ 13,021	December 31,2023	December 31,2023
			$ 25,252 3,969 $ 29,221

Lease income is summarized as follows:

	Lease income is summarized as follows:	Lease income is summarized as follows:	Lease income is summarized as follows:	Lease income is summarized as follows:
(V)	Relatedpartyname 2024 AUECC $ 19,377 Lienhwa United LPG 5,530 $ 24,907 Service revenue Account item Related party category / Name 2024 Other income Associates with investors with significant influence $ 48 Lien Hwa Property Development Corporation 512 $ 560						2023
	AUECC Lienhwa United LPG Service revenue Account item Other income						$ 18,967 5,530 $ 24,497 2023
		Associates with investors with significant influence Lien Hwa Property Development Corporation		$ 48 512 $ 560				$ 46 562 $ 608

Transactions between the Group and related parties are made on normal commercial terms.

• 72 -

(VI) Other trade receivable from related parties (excluding loans to related parties)

			December 31,	December 31,	December 31,	December 31,
	Account item	Relatedpartyname		2024		2023
	Other receivable from	Lienhwa United LPG	$	1,584	$	1,580
	related parties
		Linde LienHwa		638		932
		Industrial Gases
		Co., Ltd.
		Lien Hwa Property		81		121
		Development
		Corporation
			$	2,303	$	2,633
(VII)	Refundable deposits
			December 31,		December 31,
	Account item	Relatedpartyname		2024		2023
	Other non-current	Lien Hwa Property	$	1,307	$	1,571
	assets	Development
		Corporation
(VIII)	Accounts payable to related parties
			December 31,		December 31,
	Account item	Relatedpartycategory		2024		2023
	Trade payables	Associates with	$	2,176	$	3,079
		investors with
		significant
		influence

(IX) Guarantee deposit received

arantee deposit received
Account item Guarantee deposit received	Relatedpartyname AUECC	December 31, 2024 $ 3,685	December 31, 2023
				$ 3,685

• (X) Reward and compensation of key management personnel

The total compensation of directors and other key management personnel is as

follows:

follows:
Short-term employee benefits Post-employment benefits Share-based payments		2024 $ 22,451 237 - $ 22,688		2023
				$ 30,072 463 516 $ 31,051

• 73 -

The compensation of directors and other key management personnel is determined by the compensation committee based on individual performance and market trends.

XXXIII. Pledged Assets

The following assets have been pledged for bank performance guarantee and litigation security deposit:

litigation security deposit:
Restricted deposits (accounted for as financial assets measured at amortized cost)	December 31,2024 $ 38,475	December 31,2023
			$ 33,723

XXXIV. Significant Contingent Liabilities and Unrecognized Commitments

In addition to those described in other notes, the Group's significant commitments and contingencies as of the balance sheet date are as follows:

• (I) As of December 31, 2024 and 2023, the amounts of letters of credit issued but with documents not yet received for the purchase of raw materials and machinery and equipment were NT$146,226 thousand and NT$133,035 thousand, respectively.

• (II) The Group's unrecognized contractual commitments are as follows:

Purchase of raw materials and auxiliary materials. Purchase of property, plant and equipment	December 31,2024 $ 2,168,821 $ 477,094	December 31,2023	December 31,2023
			$ 2,318,139 $ 638,635

• (III) As of December 31, 2024, the amounts of financial guarantees provided by the Group for the borrowing limits of directly or indirectly invested companies are as follows:

• Nanchong Unicizers - CNY 490,000 thousand.

• Panjin Union Materials - CNY 201,500 thousand.

• Panjin Union Chemical - RMB 935,000 thousand.

XXXV. Other Matters

On February 15, 2023, the President promulgated amendments to the Climate Change Response Act, adding provisions for the collection of carbon fees. Subsequently, the Ministry of Environment announced the “Regulations for Charging of Carbon Fees”, “Regulations Governing Self-determined Reduction Plans”, and “The Designated GHG Emissions Reduction Goals for Entities Subject to Carbon Fees” on August 29, 2024, and announced the carbon fee collection rates on October 21, 2024, which will take

• 74 -

effect on January 1, 2025. Based on the 2024 emission assessment, the Group will be subject to carbon fee collection. Therefore, it will recognize relevant liability provisions based on actual emissions in 2025 and pay the carbon fees in May 2026.

XXXVI. Information on foreign-currency assets and liabilities with significant influence

Foreign currencies other than the functional currencies of the Group's individual entities are presented in aggregate below. The exchange rates disclosed are the rates used to translate these foreign currencies into the functional currencies. Foreigncurrency assets and liabilities with significant influence are as follows: December 31, 2024

Foreign-currency assets Monetary items USD USD MYR Non-monetary items Investments accounted for using the equity method USD Foreign-currency liabilities Monetary items USD USD MYR	Foreign currency $ 3,253 6,691 14,676 719 9,886 68,486 20,974	Exchange rate 1 USD: 32.785 NTD 1 USD: 7.188 CNY 1 MYR: 0.224 USD 1 USD: 32.785 NTD 1 USD: 32.785 NTD 1 USD: 7.188 CNY 1 MYR: 0.224 USD	Carryingamount	Carryingamount
				$ 106,650 219,364 107,640 $ 433,654 $ 23,564 $ 324,113 2,245,314 153,833 $ 2,723,260

• 75 -

December 31, 2023

Foreign-currency assets Monetary items USD USD MYR Non-monetary items Investments accounted for using the equity method USD Foreign-currency liabilities Monetary items USD USD MYR	Foreign currency $ 2,154 11,136 29,097 765 $ 18,501 48,744 36,061	Exchange rate 1 USD: 30.705 NTD 1 USD: 7.083 CNY 1 MYR: 0.218 USD 1 USD: 30.705 NTD 1 USD: 30.705 NTD 1 USD: 7.083 CNY 1 MYR: 0.218 USD	Carryingamount	Carryingamount
				$ 66,139 341,931 194,646 $ 602,716 $ 23,498 $ 568,073 1,496,685 241,232 $ 2,305,990

Carrying amount

The Group's net foreign-currency exchange losses for 2024 and 2023 were

NT$155,636 thousand and NT$78,361 thousand, respectively. Due to the wide variety of functional currencies used in foreign-currency transactions among the Group's entities, exchange gains and losses cannot be disclosed for each foreign currency with significant influence.

XXXVII. Additional Disclosures

• (I) Information on significant transactions and investees:

• Loans to Others - Table 1.

• Endorsements/Guarantees for Others - Table 2.

• Securities Held at the End of the Period (Excluding Investments in Subsidiaries and Associates) - Table 3.

• Acquisition of Real Estate with Amounts Reaching NT$300 Million or 20% of Paid-in Capital - None.

• Disposal of Real Estate with Amounts Reaching NT$300 Million or 20% of Paid-in Capital - None.

• 76 -

• Purchases and Sales with Related Parties with Amounts Reaching NT$100 Million or 20% of Paid-in Capital - Table 4.

• Receivables from Related Parties with Amounts Reaching NT$100 Million or 20% of Paid-in Capital - Table 5.

• Derivative Trading – None.

• Others: Business Relationships and Significant Transaction Activities and Amounts Between Parent and Subsidiaries and Among Subsidiaries - Table 6.

• Information on Investees - Table 7.

• (II) Information on investment in China:

• Names of investees in China, principal business activities, paid-in capital, investment methods, funds inflow and outflow, shareholding, current-period profit or loss and recognized investment profit or loss, period-end investment carrying amounts, repatriated investment profit or loss, and investment limits in China - Table 8.

• The following significant transactions with investees in China, directly or indirectly through third regions, and their prices, payment terms, and unrealized gains or losses:

  • (1) Purchase amounts and percentages, and period-end balances and percentages of related accounts payable - Table 9.

  • (2) Sales amounts and percentages, and period-end balances and percentages of related trade receivable - Table 9.

  • (3) Property transaction amounts and resulting gains or losses - None.

  • (4) Period-end balances and purposes of notes endorsements/guarantees or collateral provided - Note 34 and Table 2.

  • (5) Maximum balance of financing, period-end balance, interest rate ranges, and total interest for the current period - None.

  • (6) Other transactions with significant impacts on current-period profit or loss or financial position, such as provision or receipt of services - None.

• (III) Information on major shareholders: Names, shareholdings, and percentages of shareholders holding 5% or more of shares - Table 10.

• 77 -

XXXVIII. Segment Information

(I) General Information

Information provided to the chief operating decision maker for allocating resources and assessing segment performance focuses on the regions where the products are provided. The reportable segments are as follows: East China segment - Zhenjiang Union, Taizhou Union Chemical, Taizhou Union Plastics, Taizhou Union Logistics, Jiangsu Union Logistics, and ZhenJiang Union Torch Estate. South China segment - Zhongshan Unicizers, Zhuhai Unicizers, and Guangdong Union Logistics. North China segment - Panjin Union Chemical, Panjin Union Logistics, Panjin Union Materials, and Panjin Plastics (deregistered in June 2024). Central China segment - Nanchong Unicizers and Sichuan Logistics (merged into Nanchong Unicizers and dissolved in November 2023). Taiwan segment - The Company, Wei Chen, Union Venture Capital, and Taiwan Union International. Other segments - Union Hong Kong, Glory Ace, UPC(M) Chemicals, UPCM Trading (Thailand), UPCM Trading (Vietnam), and other overseas investment companies.

(II) Reportable segment information

Revenue from external customers Inter-segment revenue Total revenue Interest income Financial cost Significant revenue and expenses Depreciation expense Amortization expense Segment profit (loss) Segment assets Segment liabilities								20	24
		East China segment		South China segment		North China segment		Central China segment		Taiwan segment		Other segments	a	Reconciliations nd eliminations		Total
		$ 37,162,319 2,803,044 $ 39,965,363 $ 272,994 58,873 574,721 68,991 200,921		$ 18,870,113 3,017,993 $ 21,888,106 $ 14,487 97,395 243,093 44,966 ( 604,635 )		$ 5,224,307 4,643,817 $ 9,868,124 $ 8,577 264,291 464,960 9,719 ( 1,055,782 )		$ 3,153,442 502,813 $ 3,656,255 $ 723 84,594 195,376 17,332 ( 321,488 ) December	3	$ 3,340,406 1,217,323 $ 4,557,729 $ 5,682 286,921 174,138 16,622 ( 149,423 ) 1,2024		$ 5,569,693 13,560,963 $ 19,130,656 $ 38,658 868 143,241 10,356 ( 453,448 )		$ - (25,745,953) ($ 25,745,953) ( $ 263,695 ) ( 263,695 ) - - -		$ 73,320,280 - $ 73,320,280 $ 77,426 529,247 1,795,529 167,986 ( 2,383,855)
		East China segment		South China segment		North China segment		Central China segment		Taiwan segment		Other segments	a	Reconciliations nd eliminations		Total
		$ 18,292,546 9,615,832		$ 8,243,166 5,736,062		$ 9,492,249 7,174,516		$ 2,343,019 2,018,450		$ 47,670,751 16,213,437		$ 13,730,440 3,120,550		( $ 42,701,266 ) ( 16,273,631 )		$ 57,070,905 27,605,216

• 78 -

Revenue from external customers Inter-segment revenue Total revenue Interest income Financial cost Significant revenue and expenses Depreciation expense Amortization expense Segment profit (loss) Segment assets Segment liabilities								20	23
		East China segment		South China segment		North China segment $ 9,885,081 2,281,536 $ 12,166,617 $ 4,403 123,237 453,085 18,292 ( 691,605 )		Central China segment		Taiwan segment		Other segments	a	Reconciliations nd eliminations		Total
		$ 33,844,261 2,111,856 $ 35,956,117 $ 95,242 30,344 616,282 77,671 518,638		$ 17,045,570 2,609,657 $ 19,655,227 $ 12,209 77,995 264,585 53,873 ( 255,917 )				$ 3,461,898 109,455 $ 3,571,353 $ 2,838 36,306 193,228 16,967 ( 266,260 ) December	3	$ 3,150,505 2,380,203 $ 5,530,708 $ 5,244 229,130 173,619 17,768 222,388 1,2023		$ 5,808,731 12,577,130 $ 18,385,861 $ 29,019 559 140,517 9,266 189,930		$ - (22,069,837) ($ 22,069,837) ( $ 95,636 ) ( 95,636 ) - - -		$ 73,196,046 - $ 73,196,046 $ 53,319 401,935 1,841,316 193,837 ( 282,826)
		East China segment		South China segment		North China segment $ 10,295,551 7,066,418		Central China segment		Taiwan segment		Other segments	a	Reconciliations nd eliminations		Total
		$ 18,406,166 4,404,071		$ 7,406,134 4,345,439				$ 2,344,711 1,727,162		$ 48,742,021 16,489,472		$ 6,743,818 2,369,583		( $ 38,281,732 ) ( 10,795,007 )		$ 55,656,669 25,607,138

(III) Revenue from major products and services

The Group mainly produces and sells petrochemical products, with total revenue accounting for over 90% of total operating revenue.

• (IV) Information on geographic regions

The Group mainly operates in China. Information on revenue from external customers by operating location and non-current assets by asset location is as follows:

Mainland China Taiwan Others		Revenue from external customers 2024 2023 $ 64,410,181 $ 64,236,810 3,340,406 3,150,505 5,569,693 5,808,731 $ 73,320,280 $ 73,196,046	Revenue from external customers 2024 2023 $ 64,410,181 $ 64,236,810 3,340,406 3,150,505 5,569,693 5,808,731 $ 73,320,280 $ 73,196,046		Non-current assets	Non-current assets	Non-current assets
		2024 $ 64,410,181 3,340,406 5,569,693 $ 73,320,280			December 31, 2024 $ 14,834,982 2,101,525 901,435 $ 17,837,942		December 31, 2023
							$ 14,903,146 2,105,267 941,356 $ 17,949,769

Non-current assets refer to property, plant and equipment, computer software, right-of-use assets, and other non-current assets.

• (V) Information on major customers

No single customer accounted for 10% or more of the Company's total revenue in 2024 and 2023.

• 79 -

UPC Technology Corporation and Subsidiaries Table of Loans to Others

January 1, 2024 to December 31, 2024

Table 1

Unit: NT$ thousand, unless otherwise stated

No. (Note 1)	Lending Company	Borrower	Transaction Item	Related Party	Maximum Balance in Current Period	Period-End Balance	Amount Disbursed	Interest Rate Range for Amount Disbursed	Nature of Loan (Note 2)	Business Transaction Amount	Reason for Short- Term Financing Needs	Allowance for Doubtful Accounts	Collateral	Collateral	Individual Loan Limit	Total Loan Limit
													Item	Value
1 1 1 1 1 1 1 2 3 3 4 4 5 5 5 6 6 6 6	Zhenjiang Union Zhenjiang Union Zhenjiang Union Zhenjiang Union Zhenjiang Union Zhenjiang Union Zhenjiang Union Glory Ace CHL CHL Guangdong Union Logistics Guangdong Union Logistics Jiangsu Union Logistics Jiangsu Union Logistics Jiangsu Union Logistics Taizhou Union Plastics Taizhou Union Plastics Taizhou Union Plastics Taizhou Union Plastics	ZhenJiang Union Torch Estate Panjin Union Chemical Panjin Union Logistics Panjin Union Materials Taizhou Union Chemical Taizhou Union Plastics Zhuhai Unicizers Union Hong Kong Union Hong Kong UPCM Trading (Thailand) Zhuhai Unicizers Zhongshan Unicizers Panjin Union Chemical Panjin Union Materials Zhenjiang Union Nanchong Unicizers Panjin Union Logistics Panjin Union Materials Panjin Union Chemical	Receivable from Related Parties Receivable from Related Parties Receivable from Related Parties Receivable from Related Parties Receivable from Related Parties Receivable from Related Parties Receivable from Related Parties Receivable from Related Parties Receivable from Related Parties Receivable from Related Parties Receivable from Related Parties Receivable from Related Parties Receivable from Related Parties Receivable from Related Parties Receivable from Related Parties Receivable from Related Parties Receivable from Related Parties Receivable from Related Parties Receivable from Related Parties	Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes	$ 1,277,024 (CNY 280,000 thousand) 1,048,984 (CNY 230,000 thousand) 182,432 (CNY 40,000 thousand) 820,944 (CNY 180,000 thousand) 136,824 (CNY 30,000 thousand) 136,824 (CNY 30,000 thousand) 91,216 (CNY 20,000 thousand) 645,865 (USD 19,700 thousand) 967,158 (USD 29,500 thousand) 98,355 (USD 3,000 thousand) 136,824 (CNY 30,000 thousand) 45,608 (CNY 10,000 thousand) 182,432 (CNY 40,000 thousand) 45,608 (CNY 10,000 thousand) 59,290 (CNY 13,000 thousand) 1,391,044 (CNY 305,000 thousand) 319,256 (CNY 70,000 thousand) 1,322,632 (CNY 290,000 thousand) 1,778,712 (CNY 390,000 thousand)	$ 820,944 (CNY 180,000 thousand) 866,552 (CNY 190,000 thousand) - 661,316 (CNY 145,000 thousand) - - 91,216 (CNY 20,000 thousand) 645,865 (USD 19,700 thousand) 967,158 (USD 29,500 thousand) 98,355 (USD 3,000 thousand) 100,338 (CNY 22,000 thousand) - - 45,608 (CNY 10,000 thousand) 59,290 (CNY 13,000 thousand) - 319,256 (CNY 70,000 thousand) 319,256 (CNY 70,000 thousand) -	$ 798,140 (CNY 175,000 thousand) 615,708 (CNY 135,000 thousand) - 661,316 (CNY 145,000 thousand) - - - 229,495 (USD 7,000 thousand) 295,065 (USD 9,000 thousand) 49,178 (USD 1,500 thousand) 91,216 (CNY 20,000 thousand) - - 45,608 (CNY 10,000 thousand) 59,290 (CNY 13,000 thousand) - 273,648 (CNY 60,000 thousand) 319,256 (CNY 70,000 thousand) -	1.51% 1.51% 1.51% 1.51% 1.51% 1.51% 1.51% - - - 1.51% 1.51% 1.51% 1.51% 1.51% 1.51% 1.51% 1.51% 1.51%	2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2	$ - - - - - - - - - - - - - - - - - - -	Daily operations Daily operations Daily operations Daily operations Daily operations Daily operations Daily operations Daily operations Daily operations Daily operations Daily operations Daily operations Daily operations Daily operations Daily operations Daily operations Daily operations Daily operations Daily operations	$ - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - -	$ - - - - - - - - - - - - - - - - - - -	$ 1,431,556 (CNY 313,883 thousand) (Note 3) 1,431,556 (CNY 313,883 thousand) (Note 3) 1,431,556 (CNY 313,883 thousand) (Note 3) 1,431,556 (CNY 313,883 thousand) (Note 3) 1,431,556 (CNY 313,883 thousand) (Note 3) 1,431,556 (CNY 313,883 thousand) (Note 3) 1,431,556 (CNY 313,883 thousand) (Note 3) 648,375 (USD 19,777 thousand) (Note 5) 11,317,140 (USD 345,193 thousand) (Note 7) 11,317,140 (USD 345,193 thousand) (Note 7) 203,176 (CNY 44,548 thousand) (Note 9) 203,176 (CNY 44,548 thousand) (Note 9) 267,474 (CNY 58,646 thousand) (Note 11) 267,474 (CNY 58,646 thousand) (Note 11) 267,474 (CNY 58,646 thousand) (Note 11) 3,119,747 (CNY 684,035 thousand) (Note 13) 3,119,747 (CNY 684,035 thousand) (Note 13) 3,119,747 (CNY 684,035 thousand) (Note 13) 3,119,747 (CNY 684,035 thousand) (Note 13)	$ 2,863,112 (CNY 627,765 thousand) (Note 4) 2,863,112 (CNY 627,765 thousand) (Note 4) 2,863,112 (CNY 627,765 thousand) (Note 4) 2,863,112 (CNY 627,765 thousand) (Note 4) 2,863,112 (CNY 627,765 thousand) (Note 4) 2,863,112 (CNY 627,765 thousand) (Note 4) 2,863,112 (CNY 627,765 thousand) (Note 4) 648,375 (USD 19,777 thousand) (Note 6) 22,634,280 (USD 690,385 thousand) (Note 8) 22,634,280 (USD 690,385 thousand) (Note 8) 203,176 (CNY 44,548 thousand) (Note 10) 203,176 (CNY 44,548 thousand) (Note 10) 267,474 (CNY 58,646 thousand) (Note 12) 267,474 (CNY 58,646 thousand) (Note 12) 267,474 (CNY 58,646 thousand) (Note 12) 6,239,494 (CNY 1,368,070 thousand) (Note 14) 6,239,494 (CNY 1,368,070 thousand) (Note 14) 6,239,494 (CNY 1,368,070 thousand) (Note 14) 6,239,494 (CNY 1,368,070 thousand) (Note 14)

(To be continued)

• 80 -

(Continued from the previous page)

No. (Note 1)	Lending Company	Borrower	Transaction Item	Related Party	Maximum Balance in Current Period	Period-End Balance	Amount Disbursed	Interest Rate Range for Amount Disbursed	Nature of Loan (Note 2)	Business Transaction Amount	Reason for Short- Term Financing Needs	Allowance for Doubtful Accounts	Collateral	Collateral	Individual Loan Limit	Total Loan Limit
													Item	Value
6 6 6 6 7 8 8 9 9 9 9 9 9 9 9 10 11 11 12 13 13	Taizhou Union Plastics Taizhou Union Plastics Taizhou Union Plastics Taizhou Union Plastics Zhongshan Unicizers Zhuhai Unicizers Zhuhai Unicizers Taizhou Union Chemical Taizhou Union Chemical Taizhou Union Chemical Taizhou Union Chemical Taizhou Union Chemical Taizhou Union Chemical Taizhou Union Chemical Taizhou Union Chemical Panjin Union Logistics Panjin Union Chemical Panjin Union Chemical Panjin Union Materials Natural Natural	Taizhou Union Logistics Taizhou Union Chemical Zhuhai Unicizers Zhongshan Unicizers Zhuhai Unicizers Zhongshan Unicizers Nanchong Unicizers Taizhou Union Logistics Taizhou Union Plastics Zhuhai Unicizers Zhongshan Unicizers Panjin Union Chemical Zhenjiang Union Nanchong Unicizers Panjin Union Logistics Panjin Union Chemical Panjin Union Materials Panjin Union Logistics Panjin Union Chemical Nanchong Unicizers Panjin Union Materials	Receivable from Related Parties Receivable from Related Parties Receivable from Related Parties Receivable from Related Parties Receivable from Related Parties Receivable from Related Parties Receivable from Related Parties Receivable from Related Parties Receivable from Related Parties Receivable from Related Parties Receivable from Related Parties Receivable from Related Parties Receivable from Related Parties Receivable from Related Parties Receivable from Related Parties Receivable from Related Parties Receivable from Related Parties Receivable from Related Parties Receivable from Related Parties Receivable from Related Parties Receivable from Related Parties	Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes	$ 296,452 (CNY 65,000 thousand) 456,080 (CNY 100,000 thousand) 410,472 (CNY 90,000 thousand) 136,824 (CNY 30,000 thousand) 1,505,064 (CNY 330,000 thousand) 273,648 (CNY 60,000 thousand) 136,824 (CNY 30,000 thousand) 410,472 (CNY 90,000 thousand) 547,296 (CNY 120,000 thousand) 273,648 (CNY 60,000 thousand) 91,216 (CNY 20,000 thousand) 273,648 (CNY 60,000 thousand) 136,824 (CNY 30,000 thousand) 45,608 (CNY 10,000 thousand) 273,648 (CNY 60,000 thousand) 91,216 (CNY 20,000 thousand) 456,080 (CNY 100,000 thousand) 501,688 (CNY 110,000 thousand) 319,256 (CNY 70,000 thousand) 1,076,349 (CNY 236,000 thousand) 383,107 (CNY 84,000 thousand)	$ 273,648 (CNY 60,000 thousand) - - - 1,368,240 (CNY 300,000 thousand) 136,824 (CNY 30,000 thousand) - 410,472 (CNY 90,000 thousand) - 136,824 (CNY 30,000 thousand) - 273,648 (CNY 60,000 thousand) 136,824 (CNY 30,000 thousand) 45,608 (CNY 10,000 thousand) 273,648 (CNY 60,000 thousand) - 136,824 (CNY 30,000 thousand) 91,216 (CNY 20,000 thousand) - 921,282 (CNY 202,000 thousand) 383,107 (CNY 84,000 thousand)	$ - - - - 273,648 (CNY 60,000 thousand) - - 209,797 (CNY 46,000 thousand) - - - 205,236 (CNY 45,000 thousand) - - 273,648 (CNY 60,000 thousand) - 114,020 (CNY 25,000 thousand) 77,534 (CNY 17,000 thousand) - 921,282 (CNY 202,000 thousand) 383,107 (CNY 84,000 thousand)	1.51% 1.51% 1.51% 1.51% 1.51% 1.51% 1.51% 1.51% 1.51% 1.51% 1.51% 1.51% 1.51% 1.51% 1.51% 1.51% 1.51% 1.51% 1.51% - -	2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2	$ - - - - - - - - - - - - - - - - - - - - -	Daily operations Daily operations Daily operations Daily operations Daily operations Daily operations Daily operations Daily operations Daily operations Daily operations Daily operations Daily operations Daily operations Daily operations Daily operations Daily operations Daily operations Daily operations Daily operations Daily operations Daily operations	$ - - - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - -	$ - - - - - - - - - - - - - - - - - - - - -	$ 3,119,747 (CNY 684,035 thousand) (Note 13) 3,119,747 (CNY 684,035 thousand) (Note 13) 3,119,747 (CNY 684,035 thousand) (Note 13) 3,119,747 (CNY 684,035 thousand) (Note 13) 2,027,164 (CNY 444,476 thousand) (Note 15) 722,987 (CNY 158,522 thousand) (Note 17) 722,987 (CNY 158,522 thousand) (Note 17) 1,334,482 (CNY 292,598 thousand) (Note 19) 1,334,482 (CNY 292,598 thousand) (Note 19) 1,334,482 (CNY 292,598 thousand) (Note 19) 1,334,482 (CNY 292,598 thousand) (Note 19) 1,334,482 (CNY 292,598 thousand) (Note 19) 1,334,482 (CNY 292,598 thousand) (Note 19) 1,334,482 (CNY 292,598 thousand) (Note 19) 1,334,482 (CNY 292,598 thousand) (Note 19) 522,569 (CNY 114,578 thousand) (Note 21) 535,277 (CNY 117,365 thousand) (Note 23) 535,277 (CNY 117,365 thousand) (Note 23) 524,866 (CNY 115,082 thousand) (Note 25) 4,711,983 (USD 143,724 thousand) (Note 27) 4,711,983 (USD 143,724 thousand) (Note 27)	$ 6,239,494 (CNY 1,368,070 thousand) (Note 14) 6,239,494 (CNY 1,368,070 thousand) (Note 14) 6,239,494 (CNY 1,368,070 thousand) (Note 14) 6,239,494 (CNY 1,368,070 thousand) (Note 14) 4,054,328 (CNY 888,951 thousand) (Note 16) 1,445,974 (CNY 317,044 thousand) (Note 18) 1,445,974 (CNY 317,044 thousand) (Note 18) 2,668,964 (CNY 585,197 thousand) (Note 20) 2,668,964 (CNY 585,197 thousand) (Note 20) 2,668,964 (CNY 585,197 thousand) (Note 20) 2,668,964 (CNY 585,197 thousand) (Note 20) 2,668,964 (CNY 585,197 thousand) (Note 20) 2,668,964 (CNY 585,197 thousand) (Note 20) 2,668,964 (CNY 585,197 thousand) (Note 20) 2,668,964 (CNY 585,197 thousand) (Note 20) 1,045,139 (CNY 229,157 thousand) (Note 22) 1,070,554 (CNY 234,729 thousand) (Note 24) 1,070,554 (CNY 234,729 thousand) (Note 24) 1,049,731 (CNY 230,164 thousand) (Note 26) 4,711,983 (USD 143,724 thousand) (Note 28) 4,711,983 (USD 143,724 thousand) (Note 28)

(To be continued)

• 81 -

(Continued from the previous page)

No. (Note 1)	Lending Company	Borrower	Transaction Item	Related Party	Maximum Balance in Current Period	Period-End Balance	Amount Disbursed	Interest Rate Range for Amount Disbursed	Nature of Loan (Note 2)	Business Transaction Amount	Reason for Short- Term Financing Needs	Allowance for Doubtful Accounts	Collateral	Collateral	Individual Loan Limit	Total Loan Limit
													Item	Value
13 13 14 14 15 Total	Natural Natural Daywinn Daywinn Taiwan Union International	Panjin Union Chemical Zhuhai Unicizers Panjin Union Chemical Nanchong Unicizers The Company	Receivable from Related Parties Receivable from Related Parties Receivable from Related Parties Receivable from Related Parties Receivable from Related Parties	Yes Yes Yes Yes Yes	$ 1,131,078 (CNY 248,000 thousand) 118,581 (CNY 26,000 thousand) 273,648 (CNY 60,000 thousand) 396,790 (CNY 87,000 thousand) 300,000 $ 21,002,549	$ 1,131,078 (CNY 248,000 thousand) 118,581 (CNY 26,000 thousand) - - - $ 10,832,978	$ 1,131,078 (CNY 248,000 thousand) 118,581 (CNY 26,000 thousand) - - - $ 7,145,851	- - - - 1.51%	2 2 2 2 2	$ - - - - -	Daily operations Daily operations Daily operations Daily operations Daily operations	$ - - - - -	- - - - -	$ - - - - -	$ 4,711,983 (USD 143,724 thousand) (Note 27) 4,711,983 ( USD 143,724 thousand ) (Note 27) 1,620,439 (USD 49,426 thousand) (Note 29) 1,620,439 (USD 49,426 thousand) (Note 29) 577,853 (Note 31)	$ 4,711,983 (USD 143,724 thousand) (Note 28) 4,711,983 ( USD 143,724 thousand ) (Note 28) 1,620,439 (USD 49,426 thousand) (Note 30) 1,620,439 (USD 49,426 thousand) (Note 30) 577,853 (Note 32)

Note 1: Zhenjiang Union: Enter 1. Glory Ace: Enter 2. CHL: Enter 3. Guangdong Union Logistics: Enter 4. Jiangsu Union Logistics: Enter 5. Taizhou Union Plastics: Enter 6. Zhongshan Unicizers: Enter 7. Zhuhai Unicizers: Enter 8. Taizhou Union Chemical: Enter 9. Panjin Union Logistics: Enter 10. Panjin Union Chemical: Enter 11. Panjin Union Materials: Enter 12. Natural: Enter 13. Daywinn: Enter 14. Taiwan Union International: Enter 15.

Note 2: The nature of the loan shall be filled in as follows:

• (1) Business transactions: Enter 1.

• (2) Short-term financing needs: Enter 2.

Note 3: Individual loan limit for Zhenjiang Union shall be no more than 50% of the net worth in its most recent financial statements audited or reviewed by CPAs. Note 4: Total loan limit for Zhenjiang Union shall be no more than 100% of the net worth in its most recent financial statements audited or reviewed by CPAs. Note 5: Individual loan limit for Glory Ace shall be no more than 100% of the net worth in its most recent financial statements audited or reviewed by CPAs. Note 6: Total loan limit for Glory Ace shall be no more than 100% of the net worth in its most recent financial statements audited or reviewed by CPAs. Note 7: Individual loan limit for CHL shall be no more than 50% of the net worth in its most recent financial statements audited or reviewed by CPAs. Note 8: Total loan limit for CHL shall be no more than 100% of the net worth in its most recent financial statements audited or reviewed by CPAs. Note 9: Individual loan limit for Guangdong Union Logistics shall be no more than 100% of the net worth in its most recent financial statements audited or reviewed by CPAs. Note 10: Total loan limit for Guangdong Union Logistics shall be no more than 100% of the net worth in its most recent financial statements audited or reviewed by CPAs. Note 11: Individual loan limit for Jiangsu Union Logistics shall be no more than 100% of the net worth in its most recent financial statements audited or reviewed by CPAs Note 12: Total loan limit for Jiangsu Union Logistics shall be no more than 100% of the net worth in its most recent financial statements audited or reviewed by CPAs. Note 13: Individual loan limit for Taizhou Union Plastics shall be no more than 50% of the net worth in its most recent financial statements audited or reviewed by CPAs. Note 14: Total loan limit for Taizhou Union Plastics shall be no more than 100% of the net worth in its most recent financial statements audited or reviewed by CPAs. Note 15: Individual loan limit for Zhongshan Unicizers shall be no more than 50% of the net worth in its most recent financial statements audited or reviewed by CPAs. Note 16: Total loan limit for Zhongshan Unicizers shall be no more than 100% of the net worth in its most recent financial statements audited or reviewed by CPAs. Note 17: Individual loan limit for Zhuhai Unicizers shall be no more than 50% of the net worth in its most recent financial statements audited or reviewed by CPAs. Note 18: Total loan limit for Zhuhai Unicizers shall be no more than 100% of the net worth in its most recent financial statements audited or reviewed by CPAs. Note 19: Individual loan limit for Taizhou Union Chemical shall be no more than 50% of the net worth in its most recent financial statements audited or reviewed by CPAs. Note 20: Total loan limit for Taizhou Union Chemical shall be no more than 100% of the net worth in its most recent financial statements audited or reviewed by CPAs. Note 21: Individual loan limit for Panjin Union Logistics shall be no more than 50% of the net worth in its most recent financial statements audited or reviewed by CPAs. Note 22: Total loan limit for Panjin Union Logistics shall be no more than 100% of the net worth in its most recent financial statements audited or reviewed by CPAs. Note 23: Individual loan limit for Panjin Union Chemical shall be no more than 50% of the net worth in its most recent financial statements audited or reviewed by CPAs. Note 24: Total loan limit for Panjin Union Chemical shall be no more than 100% of the net worth in its most recent financial statements audited or reviewed by CPAs. Note 25: Individual loan limit for Panjin Union Materials shall be no more than 50% of the net worth in its most recent financial statements audited or reviewed by CPAs. Note 26: Total loan limit for Panjin Union Materials shall be no more than 100% of the net worth in its most recent financial statements audited or reviewed by CPAs. Note 27: Individual loan limit for Natural shall be no more than 100% of the net worth in its most recent financial statements audited or reviewed by CPAs. Note 28: Total loan limit for Natural shall be no more than 100% of the net worth in its most recent financial statements audited or reviewed by CPAs. Note 29: Individual loan limit for Daywinn shall be no more than 100% of the net worth in its most recent financial statements audited or reviewed by CPAs. Note 30: Total loan limit for Daywinn shall be no more than 100% of the net worth in its most recent financial statements audited or reviewed by CPAs. Note 31: Individual loan limit for Taiwan Union International shall be no more than 40% of the net worth in its most recent financial statements audited or reviewed by CPAs. Note 32: Total loan limit for Taiwan Union International shall be no more than 40% of the net worth in its most recent financial statements audited or reviewed by CPAs.

• 82 -

UPC Technology Corporation and Subsidiaries

Table of Endorsements/Guarantees for Others January 1, 2024 to December 31, 2024

Unit: NT$ thousand, unless otherwise stated

Table 2										Unit: NT$ thousand, unless otherwise stated
No. (Note 1)	Name of Endorser/ Guarantor	Endorsed/Guaranteed Party		Endorsement/ Guarantee Limit per Individual Entity	Maximum Endorsement/ Guarantee Balance in Current Period	Period-End Endorsement/ Guarantee Balance	Amount Disbursed	Amount of Endorsement/ Guarantee Secured by Property	Cumulative Endorsement/ Guarantee Amount as Percentage of Most Recent Financial Statement Net Worth(%)	Maximum Endorsement/ Guarantee Limit	Endorsement/ Guarantee from Parent Company to Subsidiary	Endorsement/ Guarantee from Subsidiary to Parent Company	Endorsement/ Guarantee for Entities in China
		Company name	Relationship (Note 2)
0	The Company	Taizhou Union Plastics Nanchong Unicizers Panjin Union Materials Panjin Union Chemical UPC(M) Chemicals Union Hong Kong	(2) (2) (2) (2) (2) (2)	$ 14,374,921 (Note 3)	$ 655,700 (USD 20,000 thousand) 2,827,696 (CNY 620,000 thousand) 1,329,473 (CNY 291,500 thousand) 4,948,468 (CNY 1,085,000 thousand) 655,700 (USD 20,000 thousand) 491,775 (USD 15,000 thousand)	$ - 2,234,792 (CNY 490,000 thousand) 919,001 (CNY 201,500 thousand) 4,264,348 (CNY 935,000 thousand) - -	$ - 846,963 (CNY 185,705 thousand) 321,016 (CNY 70,386 thousand) 2,209,814 (CNY 484,523 thousand) - -	$ - - - - - -	- 7.77% 3.20% 14.83% - -	$ 43,124,762 (Note 3)	Y Y Y Y Y Y	N N N N N N	Y Y Y Y N N

Note 1: The Company: Enter 0.

Note 2: The relations between the endorsed/guaranteed party and the Company are classified into seven categories, as indicated below:

• (1) Companies with which the Company has business relations.

• (2) Companies in which the Company directly or indirectly holds more than 50% of the voting shares.

• (3) Companies that directly or indirectly hold more than 50% of the Company's voting shares.

• (4) Companies in which the Company directly or indirectly holds 90% or more of the voting shares.

• (5) Companies that are jointly guaranteeing each other in the same industry or as joint developers for construction project contracting in accordance with contracts.

• (6) Companies jointly guaranteed by all investing shareholders in proportion to their shareholdings due to joint investment.

• (7) Joint and several liability guarantees between companies in the same industry for pre-sale housing contract performance guarantees as regulated by the Consumer Protection Act.

• Note 3: The total endorsement/guarantee amount shall not exceed 150% of the Company's net worth in its most recent financial statements audited or reviewed by CPAs. The endorsement/guarantee amount for a single entity shall not exceed 50% of the Company's net worth in its most recent financial statements audited or reviewed by CPAs.

• 83 -

As of December 31, 2024

In Thousands of New Taiwan Dollars

UPC Technology Corporation and Subsidiaries

Securities Held at the End of the Period

Table 3

Holding Company	Type and Name of Securities (Note 1)	Relations with Issuer (Note 2)	Account Item		Period-End	Period-End		Remarks
				Number of Shares or Units (Thousands)	Carrying amount (Note 3)	Shareholding Ratio (%)	Fair value
The Company Union Venture Capital Wei Chen	Domestic stocks listed on TWSE/TPEx Lien Hwa Industrial Holdings MiTAC Holdings Domestic stocks not listed on TWSE/TPEx Lienhwa United LPG Harbinger Venture Capital Harbinger VI Venture Capital Domestic stocks listed on TWSE/TPEx and the emerging stock market ACTi Visco Vision Inc. Domestic stocks not listed on TWSE/TPEx Harbinger III Venture Capital Harbinger VI Venture Capital Harbinger VII Venture Capital Harbinger VIII Venture Capital Harbinger IX Venture Capital Taiwan Mobile Communication INC. Domestic stocks not listed on TWSE/TPEx Lien Yung Investment Tong Da Investment	Same Chairman 〃 The Company is a director of the company Same Chairman The Company is a director of the company The Company is a director of the company	Financial assets measured at FVTOCI - non-current 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃	165,553 99,803 5,532 7 3,214 387 123 15 739 5,299 9,599 5,000 447 9,217 4,848	$ 8,393,546 7,076,004 71,466 38 39,209 10,058 22,052 214 9,018 79,109 107,216 50,000 2,770 187,477 135,214	9.68 8.27 17.29 3.35 13.28 1.46 0.20 15.00 3.05 9.33 8.45 9.70 1.10 19.99 19.99	$ 8,393,546 7,076,004 71,466 38 39,209 10,058 22,052 214 9,018 79,109 107,216 50,000 2,770 187,477 135,214

(To be continued)

• 84 -

(Continued from the previous page)

Holding Company	Type and Name of Securities (Note 1)	Relations with Issuer (Note 2)	Account Item		Period-End	Period-End		Remarks
				Number of Shares or Units (Thousands)	Carrying amount (Note 3)	Shareholding Ratio (%)	Fair value
Taiwan Union International CHL	Domestic stocks listed on TWSE/TPEx Getac Holdings ASIA POLYMER TAITA CHEMICAL Synnex Technology International CCI Yilan Domestic stocks not listed on TWSE/TPEx Harbinger Venture Management Mitac Incorporated MiTAC Digital Technology Foreign unlisted stocks Budworth	Same Chairman Same Chairman 〃 〃	Financial assets measured at FVTOCI - current 〃 〃 〃 〃 Financial assets measured at FVTOCI - non-current 〃 〃 〃	1,831 14,311 8,855 4,950 2,200 863 914 1 30	$ 194,086 194,630 121,313 350,460 220,000 20,909 70,096 8 -	0.30 2.41 2.23 0.30 2.80 19.99 0.23 - 3.33	$ 194,086 194,630 121,313 350,460 220,000 20,909 70,096 8 -

Note 1: Securities refer to stocks, beneficiary certificates, and derivatives thereof within the scope of IFRS 9 “Financial Instruments”.

Note 2: If the issuer of the securities is not a related party, this field can be left blank.

• Note 3: For securities measured at fair value, the carrying amount field should include the fair value adjustment and the carrying amount after deducting the allowance for losses. For securities not measured at fair value, the carrying amount field should include the carrying amount of amortized cost (after deducting the allowance for losses).

• Note 4: For information on investments in subsidiaries and associates, please refer to Table 7 and Table 8.

• 85 -

UPC Technology Corporation and Subsidiaries

Purchases and sales with related parties with amounts reaching NT$100 million or more than 20% of paid-in capital

January 1, 2024 to December 31, 2024

Table 4

In Thousands of New Taiwan Dollars

Purchasing (Selling) Company	Counterparty	Relationship			Transaction Type	Transaction Type	Conditions Differing from Normal Transactions and Reasons	Conditions Differing from Normal Transactions and Reasons	Notes/Trade receivable (Payable)	Notes/Trade receivable (Payable)	Remarks
			Purchases (Sales)	Amount	Percentage of Total Purchases (Sales) (%)	Payment Terms	Unit Price	Payment Terms	Balance	Percentage of Total Notes/ Trade receivable (Payable) (%)
The Company The Company The Company The Company Taizhou Union Chemical Taizhou Union Chemical Taizhou Union Chemical Taizhou Union Chemical Taizhou Union Chemical Zhuhai Unicizers Zhuhai Unicizers Zhuhai Unicizers Zhuhai Unicizers Zhenjiang Union	Zhenjiang Union Taizhou Union Chemical Panjin Union Chemical UPC(M) Chemicals Zhongshan Unicizers Zhenjiang Union Taizhou Union Plastics Panjin Union Chemical Nanchong Unicizers The Company Zhongshan Unicizers Zhenjiang Union UPCM Trading (Vietnam) Taizhou Union Chemical	Also, companies with direct or indirect investments from the Company 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃	Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales	( $ 216,447 ) ( 321,765 ) ( 282,090 ) ( 169,299 ) ( 178,359 ) ( 191,084 ) ( 251,159 ) ( 301,070 ) ( 351,843 ) ( 451,441 ) ( 1,444,726 ) ( 439,466 ) ( 160,433 ) ( 914,937 )	( 4.75% ) ( 7.06% ) ( 6.19% ) ( 3.71% ) ( 1.29% ) ( 1.38% ) ( 1.81% ) ( 2.17% ) ( 2.54% ) ( 2.91% ) ( 9.32% ) ( 2.84% ) ( 1.04% ) ( 5.81% )	In principle, 30 days, adjusted according to actual circumstances In principle, 30 days, adjusted according to actual circumstances In principle, 30 days, adjusted according to actual circumstances In principle, 30 days, adjusted according to actual circumstances In principle, 30 days, adjusted according to actual circumstances In principle, 30 days, adjusted according to actual circumstances In principle, 30 days, adjusted according to actual circumstances In principle, 30 days, adjusted according to actual circumstances In principle, 30 days, adjusted according to actual circumstances In principle, 30 days, adjusted according to actual circumstances In principle, 30 days, adjusted according to actual circumstances In principle, 30 days, adjusted according to actual circumstances In principle, 30 days, adjusted according to actual circumstances In principle, 30 days, adjusted accordingto actual circumstances			$ 12,357 - - - 44,767 25,688 - 157,587 221,437 38,993 117,334 - 2,664 -	5.19% - - - 3.07% 1.76% - 10.82% 15.20% 3.08% 9.28% - 0.21% -

(To be continued)

• 86 -

(Continued from the previous page)

Purchasing (Selling) Company	Counterparty	Relationship			Transaction Type	Transaction Type	Conditions Differing from Normal Transactions and Reasons	Conditions Differing from Normal Transactions and Reasons	Notes/Trade receivable (Payable)	Notes/Trade receivable (Payable)	Remarks
			Purchases (Sales)	Amount	Percentage of Total Purchases (Sales) (%)	Payment Terms	Unit Price	Payment Terms	Balance	Percentage of Total Notes/ Trade receivable (Payable) (%)
Zhenjiang Union Panjin Union Chemical Panjin Union Chemical Panjin Union Chemical Panjin Union Chemical Nanchong Unicizers UPC(M) Chemicals UPC(M) Chemicals Union Hong Kong Union Hong Kong Union Hong Kong	Panjin Union Chemical The Company Zhongshan Unicizers Zhenjiang Union Zhuhai Unicizers Zhenjiang Union UPCM Trading (Thailand) UPCM Trading (Vietnam) Taizhou Union Chemical Zhuhai Unicizers UPC(M) Chemicals	Also, companies with direct or indirect investments from the Company 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃	Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales	( $ 104,956 ) ( 107,690 ) ( 481,146 ) ( 3,557,418 ) ( 327,725 ) ( 434,814 ) ( 812,216 ) ( 925,346 ) ( 6,563,343 ) ( 2,747,115 ) ( 2,442,992 )	( 0.67% ) ( 1.12% ) ( 4.98% ) ( 36.84% ) ( 3.39% ) ( 11.89% ) ( 15.70% ) ( 17.89% ) ( 55.84% ) ( 23.37% ) ( 20.79% )	In principle, 30 days, adjusted according to actual circumstances In principle, 30 days, adjusted according to actual circumstances In principle, 30 days, adjusted according to actual circumstances In principle, 30 days, adjusted according to actual circumstances In principle, 30 days, adjusted according to actual circumstances In principle, 30 days, adjusted according to actual circumstances In principle, 90 days, adjusted according to actual circumstances In principle, 90 days, adjusted according to actual circumstances In principle, 120 days, adjusted according to actual circumstances In principle, 120 days, adjusted according to actual circumstances In principle, 120 days, adjusted accordingto actual circumstances			$ 11,810 11,433 11,849 41,726 - 65,770 134,173 146,225 1,234,447 733,089 581,407	1.44% 9.21% 9.54% 33.61% - 21.52% 15.31% 16.68% 47.98% 28.49% 22.60%

• 87 -

UPC Technology Corporation and Subsidiaries

Receivables from related parties with amounts reaching NT$100 million or 20% of paid-in capital

As of December 31, 2024

Table 5

In Thousands of New Taiwan Dollars

Company with Receivables	Counterparty	Relationship	Balance of receivables from related parties	Turnover Rate (Times/Year)	Overdue receivables from related parties	Overdue receivables from related parties	Amounts receivable from related parties recovered after period- end(Note)	Allowance for Losses
					Amount	HandlingMethod
UPC(M) Chemicals UPC(M) Chemicals Union Hong Kong Union Hong Kong Union Hong Kong Taizhou Union Chemical Taizhou Union Chemical Zhuhai Unicizers Glory Ace CHL Magic Props Goldendust Zhongshan Unicizers Zhongshan Unicizers Zhongshan Unicizers Taizhou Union Chemical Taizhou Union Chemical Taizhou Union Chemical Zhenjiang Union Zhenjiang Union Zhenjiang Union Panjin Union Chemical Panjin Union Chemical Taizhou Union Plastics Taizhou Union Plastics Charmon LinkHope ReachWorld Natural Natural Natural Natural Natural	UPCM Trading (Thailand) UPCM Trading (Vietnam) Taizhou Union Chemical Zhuhai Unicizers UPC(M) Chemicals Panjin Union Chemical Nanchong Unicizers Zhongshan Unicizers Union Hong Kong Union Hong Kong Zhenjiang Union Zhongshan Unicizers Zhenjiang Union Taizhou Union Chemical Zhuhai Unicizers Taizhou Union Logistics Panjin Union Chemical Panjin Union Logistics Panjin Union Chemical ZhenJiang Union Torch Estate Panjin Union Materials Taizhou Union Chemical Panjin Union Materials Panjin Union Logistics Panjin Union Materials Taizhou Union Chemical Jiangsu Union Logistics Guangdong Union Logistics Zhuhai Unicizers Taizhou Union Plastics Panjin Union Chemical Panjin Union Materials NanchongUnicizers	Also, companies with direct or indirect investments from the Company 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃	Trade receivable $134,173 Trade receivable 146,225 Trade receivable 1,234,447 Trade receivable 733,089 Trade receivable 581,407 Trade receivable and notes receivable 157,587 Trade receivable and notes receivable 221,437 Trade receivable and notes receivable 117,334 Other receivables 229,495 Other receivables 295,065 Other receivables 651,208 Other receivables 1,112,384 Other receivables 786,775 Other receivables 325,797 Other receivables 276,398 Other receivables 211,078 Other receivables 205,236 Other receivables 273,648 Other receivables 615,918 Other receivables 798,140 Other receivables 661,316 Other receivables 183,636 Other receivables 114,638 Other receivables 273,648 Other receivables 319,256 Other receivables 324,497 Other receivables 159,683 Other receivables 101,601 Other receivables 118,581 Other receivables 1,219,715 Other receivables 1,131,078 Other receivables 383,107 Other receivables 921,282	4.35 4.53 7.13 3.92 4.70 3.82 1.83 11.19 - - - - - - - - - - - - - - - - - - - - - - - - -	$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -		$ 134,173 146,225 800,611 366,653 455,914 90,571 68,896 117,334 - 295,065 - - - - 73,413 1,282 136,824 - 182,432 - - 183,184 - - - - 159,683 101,601 118,581 944,699 8,209 - 18,243	$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Note: Amount recovered as of March 7, 2025.

• 88 -

UPC Technology Corporation and Subsidiaries

Business Relationships and Significant Transaction Activities Between Parent and Subsidiaries

January 1, 2024 to December 31, 2024

Table 6

In Thousands of New Taiwan Dollars

No. (Note 1)	Transacting Party Name	Counterparty	Relationship (Note 2)		Transaction Activities	Transaction Activities
				Account Item	Amount (Notes 4 and 5)	Transaction Conditions	Percentage of Consolidated Total Revenue or Total Assets(%) (Note3)
0 0 0 0 1 2 2 2 3 3 3 3 3 3 3 3 3 3 3 4 4 4 4 4 4 5 5 5 5 5 5	The Company The Company The Company The Company Glory Ace Zhongshan Unicizers Zhongshan Unicizers Zhongshan Unicizers Taizhou Union Chemical Taizhou Union Chemical Taizhou Union Chemical Taizhou Union Chemical Taizhou Union Chemical Taizhou Union Chemical Taizhou Union Chemical Taizhou Union Chemical Taizhou Union Chemical Taizhou Union Chemical Taizhou Union Chemical Union Hong Kong Union Hong Kong Union Hong Kong Union Hong Kong Union Hong Kong Union Hong Kong Panjin Union Chemical Panjin Union Chemical Panjin Union Chemical Panjin Union Chemical Panjin Union Chemical Panjin Union Chemical	Taizhou Union Chemical Zhenjiang Union Panjin Union Chemical UPC(M) Chemicals Union Hong Kong Zhuhai Unicizers Zhenjiang Union Taizhou Union Chemical Panjin Union Chemical Taizhou Union Logistics Zhongshan Unicizers Panjin Union Logistics Panjin Union Chemical Nanchong Unicizers Panjin Union Chemical Taizhou Union Plastics Zhenjiang Union Nanchong Unicizers Taizhou Union Plastics Taizhou Union Chemical UPC(M) Chemicals Taizhou Union Chemical UPC(M) Chemicals Zhuhai Unicizers Zhuhai Unicizers Panjin Union Materials The Company Zhongshan Unicizers Zhenjiang Union Zhuhai Unicizers Taizhou Union Chemical	1 1 1 1 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 2 3 3 3 3	Sales Sales Sales Sales Other receivable from related parties Other receivable from related parties Other receivable from related parties Other receivable from related parties Trade receivable and Notes Receivable - Related Parties Other receivable from related parties Sales Other receivable from related parties Sales Sales Other receivable from related parties Sales Sales Trade receivable and Notes Receivable - Related Parties Other income Trade receivable - Related Parties Trade receivable - Related Parties Sales Sales Trade receivable - Related Parties Sales Other receivable from related parties Sales Sales Sales Sales Other receivable from relatedparties	$ 321,765 216,447 282,090 169,299 229,495 276,398 786,775 325,797 157,587 211,078 178,359 273,648 301,070 351,843 205,236 251,159 191,084 221,437 249,934 1,234,447 581,407 6,563,343 2,442,992 733,089 2,747,115 114,638 107,690 481,146 3,557,418 327,725 183,636	Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms	- - - - - - 1% 1% - - - - - - - - - - - 2% 1% 9% 3% 1% 4% - - 1% 5% - -

(To be continued)

• 89 -

(Continued from the previous page)

No. (Note 1)	Transacting Party Name	Counterparty	Relations with Transacting Party (Note 2)		Transaction Activities	Transaction Activities
				Account Item	Amount (Notes 4 and 5)	Transaction Conditions	Percentage of Consolidated Total Revenue or Total Assets(%) (Note3)
6 6 7 8 8 8 8 8 9 9 9 9 9 10 11 11 11 11 12 13 14 15 16 17 17 17 17 17	Taizhou Union Plastics Taizhou Union Plastics CHL Zhuhai Unicizers Zhuhai Unicizers Zhuhai Unicizers Zhuhai Unicizers Zhuhai Unicizers Zhenjiang Union Zhenjiang Union Zhenjiang Union Zhenjiang Union Zhenjiang Union Nanchong Unicizers UPC(M) Chemicals UPC(M) Chemicals UPC(M) Chemicals UPC(M) Chemicals Magic Props Goldendust Charmon LinkHope ReachWorld Natural Natural Natural Natural Natural	Panjin Union Logistics Panjin Union Materials Union Hong Kong Zhongshan Unicizers Zhongshan Unicizers The Company Zhenjiang Union UPCM Trading (Vietnam) Panjin Union Chemical ZhenJiang Union Torch Estate Panjin Union Materials Panjin Union Chemical Taizhou Union Chemical Zhenjiang Union UPCM Trading (Vietnam) UPCM Trading (Thailand) UPCM Trading (Thailand) UPCM Trading (Vietnam) Zhenjiang Union Zhongshan Unicizers Taizhou Union Chemical Jiangsu Union Logistics Guangdong Union Logistics Zhuhai Unicizers Taizhou Union Plastics Panjin Union Chemical Panjin Union Materials Nanchong Unicizers	3 3 3 3 3 2 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3	Other receivable from related parties Other receivable from related parties Other receivable from related parties Trade receivable and Notes Receivable - Related Parties Sales Sales Sales Sales Other receivable from related parties Other receivable from related parties Other receivable from related parties Sales Sales Sales Sales Sales Trade receivable - Related Parties Trade receivable - Related Parties Other receivable from related parties Other receivable from related parties Other receivable from related parties Other receivable from related parties Other receivable from related parties Other receivable from related parties Other receivable from related parties Other receivable from related parties Other receivable from related parties Other receivable from relatedparties	$ 273,648 319,256 295,065 117,334 1,444,726 451,441 439,466 160,433 615,918 798,140 661,316 104,956 914,937 434,814 925,346 812,216 134,173 146,225 651,208 1,112,384 324,497 159,683 101,601 118,581 1,219,715 1,131,078 383,107 921,282	Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms Transactions Under Normal Commercial Terms TransactionsUnderNormalCommercial Terms	- 1% 1% - 2% 1% 1% - 1% 1% 1% - 1% 1% 1% 1% - - 1% 2% - - - - 2% 2% 1% 2%

• 90 -

• Note 1: The business transaction information between the parent company and subsidiaries should be separately indicated in the Item No. column. The item numbers should be filled in as follows:

• Parent company: Enter 0.

• Subsidiaries: Number each subsidiary sequentially from 1 in Arabic numerals.

• Note 2: The relations with the transacting party are classified into three categories, and only the type should be indicated:

• Parent company to subsidiary.

• Subsidiary to parent company.

• Subsidiary to subsidiary.

• Note 3: The calculation of the transaction amount as a percentage of consolidated total revenue or total assets is as follows: For balance sheet items, calculate the period-end balance as a percentage of consolidated total assets. For income statement items, calculate the cumulative amount for the current period as a percentage of consolidated total revenue.

• Note 4: Disclose transaction amounts of NT$100,000 thousand or more.

• Note 5: Eliminated upon consolidation.

• 91 -

In Thousands of New Taiwan Dollars

UPC Technology Corporation and Subsidiaries

Information on Investees

January 1, 2024 to December 31, 2024

Table 7

Investing company name	Investee Name	Location	Principal Business Activities	Original Investment Amount	Original Investment Amount	Period-End Holdings	Period-End Holdings	Period-End Holdings	Investee Profit (Loss) for the Current Period	Investment Profit (Loss) Recognized for the Current Period	Remarks
				Period-End Investment CarryingAmount	End of Previous Year	Number of Shares (Thousands)	Percentage (%)	Carrying amount
The Company CHL Star Bright UPC(M) Chemicals	CHL Glory Ace Union Venture Capital Wei Chen Taiwan Union International UPC(M) Chemicals Star Bright Goldendust Natural Magic Props Pure Fantasy Modern Vantage Charmon Linkhope Reachworld Daywinn Dragonoble Pagerise Greaterise Granfaith Union Hong Kong Harbinger Ruyi Logical Path UPCM Trading (Thailand) UPCM Trading (Vietnam)	Tortola, British Virgin Islands Tortola, British Virgin Islands Tiding Blvd., Taipei City Nangang Rd., Taipei City Civic Blvd., Taipei City Selangeor, Malaysia Tortola, British Virgin Islands 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 Tsimshatsui Kowloon, Hong Kong Tortola, British Virgin Islands Tsimshatsui Kowloon, Hong Kong Bangkok, Thailand Ho Chi Minh City Vietnam	investment Trading investment investment investment Production and sales of plasticizers and PA investment 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 Trading investment investment Trading Trading	$ 13,127,287 128,451 250,013 160,000 453,525 1,838,838 1,348 3,070,575 3,989,953 (Note 3) 919,533 217,544 763,540 972,950 88,755 87,960 (Note 3) 1,494,521 965,857 1,502,187 1,072,934 913,293 30,465 37 28,905 17,867	$ 13,127,287 128,451 250,013 160,000 453,525 1,838,838 1,348 3,070,575 3,278,180 919,533 217,544 763,540 972,950 88,755 87,960 711,773 1,494,521 965,857 1,502,187 1,072,934 913,293 30,465 37 28,905 17,867	433,310 605 22,701 16,000 78,719 163,427 51 99,208 128,780 28,140 6,331 25,334 31,637 3,000 3,000 - 50,670 32,000 49,000 35,351 232,409 1,000 10 30,000 (Note 2)	100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 - 100 100 100 100 100 28.57 100 100 100	$ 22,064,988 663,271 334,233 366,689 1,290,704 1,717,547 298,488 5,778,354 6,500,796 2,066,692 268,159 1,032,632 1,309,616 273,514 210,131 - 137,074 984,636 1,001,914 212,776 1,257,752 23,564 298,691 44,357 5,750	( $ 1,920,338 ) 14,591 12,973 22,096 36,345 ( 328,685 ) ( 53,931 ) ( 1,151,821 ) 240,628 ( 106,239 ) ( 117,966 ) 107,754 ( 33,628 ) 3,996 5,647 - ( 353,137 ) ( 59,748 ) ( 258,040 ) ( 170,490 ) 15,176 1,336 ( 53,826 ) 12,758 ( 9,747 )	( $ 1,920,338 ) 14,591 12,973 22,096 36,345 ( 328,685 ) - - - - - - - - - - - - - - - - - - -	Subsidiary 〃 〃 〃 〃 〃 Sub-subsidiary 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 Investees Accounted for Using the Equity Method Sub-subsidiary Sub-subsidiary Sub-subsidiary

Note 1: For information on investees in China, please refer to Table 8.

Note 2: It is a limited company.

Note 3: Natural absorbed and merged Daywinn's equity in March 2024. Daywinn is the dissolved entity following the merger.

• 92 -

Unit: NT$ thousand, unless otherwise stated

UPC Technology Corporation and Subsidiaries

Summary of Information on Investment in China January 1, 2024 to December 31, 2024

Table 8

Investing company name	Name of Investee in China	Principal Business Activities	Principal Business Activities	Paid-in Capital	Investment Method (Note 1)	Cumulative Investment Amount Remitted from Taiwan at the Beginning of the Period	Cumulative Investment Amount Remitted from Taiwan at the Beginning of the Period	Investment Amount Remitted or Repatriated in the Current Period	Investment Amount Remitted or Repatriated in the Current Period	Cumulative Investment Amount Remitted from Taiwan at the End of the Period	Shareholding Ratio of Direct or Indirect Investment by the Company (%)	Investee Profit (Loss) for the Current Period	Investment Profit (Loss) Recognized for the Current Period (Note 2)	Period-End Investment Carrying Amount	Investment Profit Repatriated as of the End of the Period
								Remitted Out	Repatriated
Goldendust Zhongshan Unicizers, Logical Path, Goldendust, and Magic Props Zhongshan Unicizers, Logical Path, Pure Fantasy, and Goldendust Charmon and Zhongshan Unicizers Modern Vantage Natural Linkhope Reachworld Dragonoble and Zhongshan Unicizers Zhenjiang Union Pagerise Greaterise Granfaith and Zhongshan Unicizers	Zhongshan Unicizers Zhenjiang Union Zhuhai Unicizers Taizhou Union Chemical Taizhou Union Logistics Taizhou Union Plastics Jiangsu Union Logistics Guangdong Union Logistics Panjin Union Chemical ZhenJiang Union Torch Estate Panjin Union Logistics Panjin Union Materials Nanchong Unicizers	Production and sales of plasticizers and PA Production and sales of plasticizers and PA Production and sales of plasticizers, PA, and MA Production and sales of plasticizers and PA Warehousing Production and sales of PVC Logistics Logistics Production and sales of plasticizers and PA Real estate business Warehousing Production and sales of MA and related downstream derivatives Production and sales of plasticizers and PA		USD 108,080 thousand USD 77,340 thousand USD 35,500 thousand USD 63,400 thousand USD 23,700 thousand USD 86,078 thousand USD 3,000 thousand USD 3,000 thousand USD 25,000 thousand CNY 60,000 thousand USD 32,000 thousand USD 49,000 thousand USD 67,000 thousand	(2) (2) (2) (2) (2) (2) (2) (2) (2) (3) (2) (2) (2)	$	2,484,411 543,823 - 466,785 648,157 3,068,081 88,755 87,960 1,494,521 - 965,857 1,502,187 922,434	$ - - - - - - - - - - - - -	$ - - - - - - - - - - - - -	$ 2,484,411 543,823 - 466,785 648,157 3,068,081 88,755 87,960 1,494,521 - 965,857 1,502,187 922,434	100 100 100 100 100 100 100 100 100 100 100 100 100	( $ 958,663 ) ( 233,744 ) ( 663,809 ) ( 58,687 ) 107,922 372,584 6,159 7,062 ( 731,521 ) ( 10,684 ) ( 59,643 ) ( 257,935 ) ( 321,490 )	( $ 958,663 ) (II)2. ( 233,744 ) (II)2. ( 663,809 ) (II)2. ( 58,687 ) (II)2. 107,922 (II)2. 372,584 (II)2. 6,159 (II)2. 7,062 (II)2. ( 731,521 ) (II)2. ( 10,684 ) (II)2. ( 59,643 ) (II)2. ( 257,935 ) (II)2. ( 321,490 ) (II)2.	$ 4,097,467 2,854,941 1,403,360 1,959,326 1,032,879 2,715,567 114,021 108,718 330,782 223,080 984,827 1,002,135 324,570	$ - - - - - - - - - - - - -
Cumulative Investment Amount Remitted from China at the End of the Period		Taiwan to	Investment Amount Approved by the Investment Commission, MOEA				Investment Limit	for China as Stipulated by the Investment Commission,MOEA
$ 12,272,971 (Note 3)			$ 17,456,965 (USD 532,468 thousand) (Note 4)					(Note 5)

Note 1: Investment methods are classified into the following four types, and only the type should be indicated:

• (1) Direct investment in China.

• (2) Reinvestment in China through a third region (details of investors in the third region are shown in the table above).

• (3) Other methods - Direct investment by Zhenjiang Union.

Note 2: In the “Investment Profit (Loss) Recognized for the Current Period” column:

• (I) If the investee is in the preparation stage without investment profit or loss, it should be stated.

• (II) The basis for recognizing investment profit or loss is classified into the following three types, which should be stated.

• Financial statements audited by an international accounting firm with a cooperation relationship with a Taiwan-based accounting firm.

• Financial statements audited by the parent company's auditing CPAs in Taiwan.

• Others: Based on unaudited financial statements.

Note 3: Excluding: (I) Investment amount of NT$934,394 thousand remitted from Taiwan to China in prior years, which was remitted back to a third region after the investee was liquidated upon business termination; (II)

Investment amount of NT$3,502,208 thousand remitted from a third region using its own funds to China.

Note 4: Converted to NTD at the exchange rate of US$1 = NT$32.785 as of December 31, 2024, excluding capital increase from earnings.

Note 5: Operations Headquarter Certification Approved by the Operational Headquarters of the Industrial Development Administration on June 17, 2024, therefore not subject to investment limits.

• 93 -

Unit: NT$ thousand

UPC Technology Corporation and Subsidiaries

Table of Significant Transactions with Investees in China

January 1, 2024 to December 31, 2024

Table 9

I. Sales Transactions

Sales Transactions
Investee Name Taizhou Union Chemical Panjin Union Chemical Zhenjiang Union Purchase Transactions Investee Name Zhuhai Unicizers Panjin Union Chemical	Third-Region Entity - - - Third-Region Entity - -	Price and Payment Terms Equivalent to those with non-related parties Equivalent to those with non-related parties Equivalent to those with non-related parties Price and Payment Terms Equivalent to those with non-related parties Equivalent to those with non-related parties	Sales	% 7.06% 6.19% 4.75% % 11.93% 2.85%	Period-End Notes/Trade receivable Unrealized Sales Profit Balance % $ - $ - - - - - - 12,357 5.19% Period-End Notes/Accounts Payable Balance % $ 38,993 9.27% 11,433 2.72%	Period-End Notes/Trade receivable
			Amount $ 321,765 282,090 216,447 Purchase				%
							- - 5.19%
			Amount $ 451,441 107,690		Balance $ 38,993 11,433

• II. Purchase Transactions

III. Endorsement/Guarantee Transactions (Refer to Note 34 and Table 2)

• 94 -

UPC Technology Corporation Information on Major Shareholders

As of December 31, 2024

Table 10

Major Shareholder Name	Shares	Shares
	Number of Shares Held	Shareholding Ratio
Lien Hwa Industrial Holdings Synnex Technology International Corp.	424,880,973 68,992,033	31.06% 5.04%

• Note 1: This table is based on data of shareholders holding 5% or more of the Company's total common shares and preferred shares (including treasury shares) that have been completed for dematerialized registration and delivery as of the last business day of each quarter. There may be differences between the share capital recorded in the Company's financial statements and the actual number of shares completed for dematerialized registration and delivery due to differences in the preparation and calculation basis.

• Note 2: Shareholding Ratio (%) = Total number of shares held by the shareholder / Total number of shares completed for dematerialized registration and delivery.

• Note 3: The total number of shares completed for dematerialized registration and delivery (including treasury shares) is 1,367,924,607 shares.

• 95 -