UPC — Annual Report 2024

Nov 12, 2024

Stock Code: 1313

UPC Technology Corporation

Parent Company Only 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 Content III. Independent Auditor's Report IV. Parent Company Only Balance Sheet V. Parent Company Only Statement of Comprehensive Income VI. Parent Company Only Statement of Changes in Equity VII. Parent Company Only Statement of Cash Flows VIII. Notes to Parent Company Only 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 IX. Statements of Significant Accounting Items	Page 1 2 3~6 7 8~9 10 11~12 13 13 13~15 16~29 29 29~60 61~64 - 64 64~66 66, 68~76 66, 77 66~67, 78~79 67, 80 - 81~90	Financial Statement Note Number
		- - - - - - - I II III IV V VI~XXVI XXVII - XXVIII XXIX, XXX XXXI XXXI XXXI XXXI - -

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Independent Auditor's Report

The Board of Directors and Stockholders

UPC Technology Corporation,

Opinion

We have audited the accompanying financial statements of the Company (the “Company”), which comprise the Parent Company only balance sheets as of December 31, 2024 and 2023, and the Parent Company only statements of comprehensive income, changes in equity, and cash flows for the years then ended, and relevant notes, including a summary of significant accounting policies (collectively referred to as the “Parent Company only financial statements”). In our opinion, the accompanying the Parent Company only financial statements present fairly, in all material respects, the Parent Company only financial position of the Company as of December 31, 2024 and 2023, and its Parent Company only financial performance and its Parent Company only cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

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

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Parent Company only financial statements for the year ended December 31, 2024. These matters were addressed in the context of our audit of the Parent Company only

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financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

The key audit matter of the Company’s financial statements for the year ended December 31, 2024 is described as follows:

Recognition of Revenue of Subsidiaries Accounted for Using the Equity Method

The share of profit or loss of the Company’s subsidiaries accounted for using the equity method mainly comes from the sales of plasticizers. Considering that the recognition of revenue has a significant impact on the financial statements, the authenticity of major subsidiary sales revenue from customers with significant growth and amounts was identified as a key audit matter for this year. In addition to evaluating and testing the relevant internal control systems for such operating revenue, 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. Please refer to Note 4 (12) of the Parent Company only financial statements for the accounting policies for revenue recognition.

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

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

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

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

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

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

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it exists. Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Parent Company only financial statements. As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgment and professional skepticism throughout the audit. We also:

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

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

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

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

5. Evaluate the overall presentation, structure and content of the Parent Company only financial statements, including the disclosures and whether or not the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Parent Company only financial statements for the year ended December 31, 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 Chien-Liang Liu and Wen-Chin Lin.

Deloitte & Touche

Taipei, Taiwan Republic of China March 7, 2025

Notice to Readers

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

For the convenience of readers, the independent auditors’ report and the accompanying 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 financial statements shall prevail.

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In Thousands of New Taiwan Dollars

UPC Technology Corporation

Parent Company Only Balance Sheets

December 31, 2024 and 2023

Code 1100 1150 1170 1200 1220 130X 1470 11XX 1520 1550 1600 1755 1840 1990 15XX 1XXX Code 2170 2219 2230 2280 2399 21XX 2530 2540 2550 2570 2580 2640 2645 25XX 2XXX 3110 3140 3100 3200 3310 3320 3350 3300 3400 3500 3XXX	Assets Current assets Cash (Note 6) Notes receivable (Note 8) Trade receivables (Note 8 and 27) Other receivables (Note 27) Current tax assets (Note 22) Inventories (Note 9) Other current assets (Note 13) Total current assets Non-current assets Financial assets at FVTOCI (Note 7) Investments accounted for using the equity method (Note 10) Property, plant and equipment (Note 11) Right-of-use assets (Note 12) Deferred income tax assets (Note 22) Other non-current assets (Notes 13 and 27) Total non-current assets Total assets Liabilities and Equity Current liabilities Trade payable (Note 16 and 27) Other payables (Note 17) Current tax liabilities (Note 22) Lease liabilities - current (Notes 12 and 27) Other current liabilities (Note 17) Total current liabilities Non-current liabilities Bonds payable (Note 15) Long-term borrowings (Note 14) Provisions (Note 18) Deferred income tax liabilities (Note 22) Lease liabilities (Notes 12 and 27) Net defined benefit liabilities (Note 19) Guarantee deposits received (Note 27) Total non-current liabilities Total liabilities Equity (Note 20) 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 Amount % $ 88,235 - 14,677 - 223,362 1 3,176 - 182 - 1,090,739 2 72,188 - 1,492,559 3 15,580,263 34 26,437,432 58 1,982,399 5 20,394 - 66,210 - 98,261 - 44,184,959 97 $ 45,677,518 100 $ 420,593 1 138,610 - 1,495 - 10,195 - 59,124 - 630,017 1 2,997,382 7 12,130,000 27 16,006 - 221,738 - 10,643 - 192,232 - 13,811 - 15,581,812 34 16,211,829 35 13,677,186 30 1,751 - 13,678,937 30 1,373,465 3 2,838,651 6 341,773 1 948,533) ( 2) 2,231,891 5 12,620,337 28 438,941) ( 1) 29,465,689 65 $ 45,677,518 100	December 31,2024 Amount % $ 88,235 - 14,677 - 223,362 1 3,176 - 182 - 1,090,739 2 72,188 - 1,492,559 3 15,580,263 34 26,437,432 58 1,982,399 5 20,394 - 66,210 - 98,261 - 44,184,959 97 $ 45,677,518 100 $ 420,593 1 138,610 - 1,495 - 10,195 - 59,124 - 630,017 1 2,997,382 7 12,130,000 27 16,006 - 221,738 - 10,643 - 192,232 - 13,811 - 15,581,812 34 16,211,829 35 13,677,186 30 1,751 - 13,678,937 30 1,373,465 3 2,838,651 6 341,773 1 948,533) ( 2) 2,231,891 5 12,620,337 28 438,941) ( 1) 29,465,689 65 $ 45,677,518 100		December 31,2023	December 31,2023	December 31,2023
			Amount $ 88,235 14,677 223,362 3,176 182 1,090,739 72,188 1,492,559 15,580,263 26,437,432 1,982,399 20,394 66,210 98,261 44,184,959 $ 45,677,518 $ 420,593 138,610 1,495 10,195 59,124 630,017 2,997,382 12,130,000 16,006 221,738 10,643 192,232 13,811 15,581,812 16,211,829 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 $ 45,677,518			Amount $ 146,373 16,977 577,882 3,082 116 1,280,565 80,307 2,105,302 14,774,549 27,468,388 2,066,005 2,163 79,550 36,113 44,426,768 $ 46,532,070 $ 596,385 141,178 - 1,775 43,799 783,137 2,996,364 12,220,000 14,196 218,818 424 235,821 13,779 15,699,402 16,482,539 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 $ 46,532,070		%
		( (		( (	(		(	1 - 1 - - 3 - 5 32 59 4 - - - 95 100 1 - - - - 1 6 26 - 1 - 1 - 34 35 29 - 29 3 6 1 4 11 23 1) 65 100

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

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UPC Technology Corporation

Parent Company Only Statement of Comprehensive Income

For The Years Ended December 31, 2024 and 2023

For The Years EndedDecember 31, 2024 and 2023
In Thousands of New Taiwan Dollars, Except Losses Per 2024 2023 Code Amount % Amount 4100 Sales (Note 27) $ 4,557,729 100 $ 5,530,708 5110 Cost of goods sold (Note 9, 21 and 27) 4,543,234 100 5,189,148 5900 Gross profit 14,495 - 341,560 Operating expenses (Note 21 and 27) 6100 Selling and marketing expenses 111,665 2 124,225 6200 General and administrative expenses 248,465 6 237,924 6450 Expected credit loss (gain) ( 26) - ( 78) 6000 Total operating expenses 360,104 8 362,071 6900 Loss from operations ( 345,609) ( 8) ( 20,511) Non-operating income and expenses 7070 Share ofprofit or lossof subsidiaries accounted for using the equity method ( 2,163,018 ) ( 48 ) ( 411,445 ) 7100 Interest income (Note 21) 1,022 - 1,038 7190 Other income (Note 21 and 27) 429,772 9 400,066 7020 Other gains and losses (Note 21) ( 14,616 ) - ( 64,050 ) 7050 Financial cost (Note 21) ( 286,921) ( 6) ( 229,130) 7000 Total non-operating income and expenses (2,033,761) (45) ( 303,521) 7900 Loss before income tax ( 2,379,370 ) ( 53 ) ( 324,032 ) 7950 Income tax expense (benefit) (Note 22) 4,485 - ( 41,206) 8200 Net loss for the year (2,383,855) (53) ( 282,826)	Share
		%
	100 94 6 2 4 - 6 - ( 8 ) - 7 ( 1 ) ( 4) ( 6) ( 6 ) ( 1) ( 5)

(To be continued)

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(Continued from the previous page)

Code Other comprehensive income (Note 20 and 21) Items that will not be reclassified subsequently to profit or loss: 8311 Remeasurement of defined benefit plans 8316 Unrealized gain on investments in equity instruments at FVTOCI 8320 Share of other comprehensive income of subsidiaries accounted for using the equity method 8349 Income tax relating to items that will not be reclassified subsequently to profit or loss 8310 Items that will 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 8360 8300 Other comprehensive income for the year (net after taxes) 8500 Total comprehensive income for the year Loss per share (Note 23) 9750 Basic		2024		% - 18 4 ) - 14 31 - 31 45 8)		2023
		Amount $ 24,938 805,714 193,489 ) 4,990) 632,173 1,416,787 8,280) 1,408,507 2,040,680 $ 343,175) $ 1.79)				Amount $ 2,952 4,551,329 183,799 590) 4,737,490 334,257 ) 40 334,217) 4,403,273 $ 4,120,447 $ 0.21)		%
	( ( ( ( (		( (		( ( ( (		( (	- 82 3 - 85 6 ) - 6) 79 74

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

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UPC Technology Corporation

Parent Company Only Statement of Changes in Equity

For The Years Ended December 31, 2024 and 2023

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

The accompanying notes are an integral part of the consolidated financial state

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UPC Technology Corporation

Parent Company Only Statement of Cash Flows

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: A20100 Depreciation expense A20200 Amortization expense A20300 Expected credit gain A20900 Financial cost A21200 Interest income A21300 Dividend income A21900 Compensation costs of employee share-based payment A22400 Share of gains or losses of the subsidiaries accounted for using the equity method A22500 Loss on disposal of property, plant and equipment 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 A31200 Inventory 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 operations A33100 Interest received A33500 Income taxes paid AAAA Net cash generated from operating activities Cash flow from investing activities B02700 Purchase of property, plant and equipment		2024 $ 2,379,370 ) 174,138 16,106 26 ) 286,921 1,022 ) 330,514 ) - 2,163,018 152 9,003 24 ) 2,207 354,639 746 180,823 45,928 - 175,792 ) 5,543 ) 1,810 15,325 18,651) 339,874 1,022 66) 340,830 161,362 )		2023
	( ( ( ( ( ( ( ( ( (		( ( ( ( ( ( ( ( ( ( ( ( (	$ 324,032 ) 173,619 17,254 78 ) 229,130 1,038 ) 317,707 ) 3,782 411,445 1,019 6,043 ) - 6,104 78,398 ) 622 56,606 ) 7,280 ) 1,000 ) 245,488 13,098 ) 1,847 5,982 ) 2,883 281,931 1,038 94) 282,875 129,310 )

(To be continued)

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(Continued from the previous page)

Code B02800 Proceeds from disposal or property, plant and equipment B03700 Increase in refundable deposits B03800 Decrease in refundable deposits B06700 Increase in other non-current assets B07600 Dividends received BBBB Net cash generated from investing activities Cash Flow from Financing Activities C01300 Repayment of bonds 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 accompanying C04500 Cash dividends C04800 Proceeds from exercise of employee share options C05600 Interest paid CCCC Net cash used in financing activities EEEE Net decrease in cash E00100 Cash at the beginning of the year E00200 Cash at the end of the year	2024 $ - ( 16,589 ) 6,819 ( 19,471 ) 420,526 229,923 - 82,209,000 ( 82,299,000 ) 36 ( 4 ) ( 10,404 ) ( 265,511 ) 25,228 ( 288,236) ( 628,891) ( 58,138 ) 146,373 $ 88,235	2023
		$ 223 ( 4,014 ) 4,049 ( 3,708 ) 466,134 333,374 ( 6,000,000 ) 34,500,000 ( 28,710,000 ) 4 ( 8 ) ( 10,604 ) ( 263,583 ) 82,361 ( 225,757) ( 627,587) ( 11,338 ) 157,711 $ 146,373

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

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UPC Technology Corporation

Notes to Parent Company Only Financial Statements

January 1 to December 31, 2024 and 2023

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

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

II. Date and Procedures for Approval of Financial statements

The Parent Company only financial statements was 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,

• 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 Parent Company only 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 overall profit or loss.

• Requirements for provision of guidance to enhance aggregation and disaggregation: The Company 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 Company 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 Company engages in public communications outside financial statements and communicates management’s view of a specific aspect of the financial performance of the entity as a whole, the Company 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 Parent Company only financial statements was approved, the Company 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.

• 15 -

IV. Summary of Significant Accounting Policies

• (I) Statement of compliance

The Parent Company only financial statements are prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers. (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 Parent Company only 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.

When preparing its Parent Company only financial statements, the Company accounts for its investments in subsidiaries using the equity method. To ensure that the current year's profit or loss, other comprehensive income, and equity in these Parent Company only financial statements are the same as the current year's profit or loss, other comprehensive income, and equity attributable to the Company's owners in its consolidated financial statements, certain accounting treatment differences between the parent company only and consolidated bases are adjusted through “investments accounted for using the equity method”, “share of profit or loss of subsidiaries accounted for using the equity method”, “share of other comprehensive income of subsidiaries accounted for using the equity method”, and related equity items.

• (III) Criteria for classification of current and non-current assets and liabilities Current assets include:

• Assets held primarily for the purpose of trading;

• Assets expected to be realized 12 months after the balance sheet date; and

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

• 16 -

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.

• (IV) Foreign currencies

When the Parent Company only financial statements of the Company were prepared, transactions in currencies other than the Company’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.

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 Parent Company only financial statements, the assets and liabilities of foreign operations are translated into NTD at the exchange rates prevailing at each balance sheet date. Except for significant fluctuations in exchange rates during the period, which are translated at the exchange rate on the transaction date, revenue and expense items are translated at the average exchange rate for the period, and the resulting exchange differences are recognized in other comprehensive income.

• (V)

• Inventory

Inventories primarily include merchandise, raw materials, supplies, finished goods, semi-finished goods, and work-in-progress. Inventories are measured at the

• 17 -

(VI)

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 weighted-average method. Investment in subsidiaries

The Company accounts for its investment in subsidiaries using the equity method.

A subsidiary is an entity that the Company controls.

Under the equity method, investments are initially recognized at cost, and the carrying amount after the acquisition date is increased or decreased according to the Company's share of the subsidiary's profit or loss, other comprehensive income, and profit distribution. In addition, changes in other equity of the subsidiary to which the Company is entitled are recognized in proportion to its ownership percentage.

When changes in the Company’s ownership interest in a subsidiary do not result in a loss of control, they are treated as equity transactions. The difference between the carrying amount of the investment and the fair value of the consideration paid or received is recognized directly in equity.

When the Company's share of losses on a subsidiary equals or exceeds its interest in the subsidiary (including the carrying amount of the subsidiary under the equity method and other long-term interests that, in substance, form part of the Company's net investment in the subsidiary), losses continue to be recognized in proportion to its shareholding.

The excess of the acquisition cost over the Company's share of the net fair value of the subsidiary's identifiable assets and liabilities at the acquisition date is recognized as goodwill, which is included in the carrying amount of the investment and is not amortized; the excess of the Company's share of the net fair value of the subsidiary's identifiable assets and liabilities at the acquisition date over the acquisition cost is recognized as current income.

When control of a subsidiary is lost, the Company measures its remaining investment in the subsidiary at fair value on the date control is lost, and the difference between the fair value of the remaining investment and any disposal proceeds and the carrying amount of the investment on the date control is recognized in current profit or loss. In addition, all amounts recognized in other comprehensive

• 18 -

income related to the subsidiary are accounted for on the same basis as that required for the Company's direct disposal of related assets or liabilities.

Unrealized profits or losses from downstream transactions between the Company and its subsidiaries are eliminated in the Parent Company only financial statements. Profits or losses arising from upstream and lateral transactions between the Company and its subsidiaries are recognized in the Parent Company only financial statements only to the extent that they are unrelated to the Company's equity in the subsidiaries.

(VII) 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 Company 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.

(VIII) Computer software

Computer software is measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment losses. The Company 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 Company expects to dispose of the software before the end of its economic life. The effects of changes in accounting estimates are treated prospectively.

• 19 -

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.

(IX) Impairment of property, plant and equipment, right-of-use assets, and intangible assets

The Company 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 Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Corporate assets are allocated to the smallest group of cash-generating units on a reasonable and consistent basis.

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.

(X) Financial instruments

Financial assets and financial liabilities are recognized in the balance sheet when the Company 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

2. 20 -

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

• (1) Measurement categories

The Company’s financial assets are classified as financial assets measured at amortized cost and equity instrument investments at FVTOCI.

• A. Financial assets measured at amortized cost

The Company 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, notes receivable, trade receivable, other receivables, 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.

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 credit-impaired 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

• 21 -

financial reorganization, or where the active market for the financial assets has disappeared due to financial difficulties.

B. Equity instrument investments measured at FVTOCI

At initial recognition, the Company 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 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 Company’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 Company 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.

• 22 -

For internal credit risk management purposes, the Company 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, which are recognized in other comprehensive income without reducing their carrying amounts.

(3) Derecognition of financial assets

The Company derecognizes a financial asset only when the contractual rights to the cash flow from the financial asset expire or when it transfers the financial asset and substantially all the risks and rewards of ownership of the financial asset are transferred 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 Company 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.

• 23 -

Equity instruments issued by the Company are recognized at the amount of 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 of the Company are measured at amortized cost using the effective interest method.

• (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.

(XI) 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.

• (XII) Revenue recognition

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

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 Company recognizes revenue and trade receivable at that point in time.

• 24 -

(XIII) Leases

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

1. The Company 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. Lease negotiations with lessees are accounted for as a new lease from the effective date of the lease modification.

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.

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

The Company 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 parent company only 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

• 25 -

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 Company remeasures the lease liability and adjusts the right-of-use asset accordingly. 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 right-of-use asset. Lease liabilities are presented separately in the parent company only balance sheet.

(XIV) 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.

(XV) 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

• 26 -

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.

• (XVI) 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 treasury shares to employees, the grant date is the date the employees are notified.

• (XVII) Income taxes

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

1. Current income tax

The Company determines current income (loss) in accordance with the regulations promulgated by the Republic of China 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.

• 27 -

2. 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 Company 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 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 Company expects, at the balance sheet date, to recover or settle the carrying amount of its assets and liabilities.

1. 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

• 28 -

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 Company’s management is required to make judgments, estimates, and assumptions based on historical experience and other relevant factors when relevant information is not readily available from other sources. Actual results may differ from these estimates.

The Company’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.

VI. Cash

Cash
Cash on hand and petty cash Bank checks and demand deposits	December 31,2024 $ 169 88,066 $ 88,235	December 31,2023
			$ 167 146,206 $ 146,373

Interest rate ranges for bank deposits at the balance sheet date are as follows:

	Interest rate ranges for bank deposits at the balance sheet date	Interest rate ranges for bank deposits at the balance sheet date	are as follows:	are as follows:
VII.	December 31,2024 Bank deposits 0.03%~0.73% Financial assets at FVTOCI (equity instrument investments)) December 31,2024 Non-current Domestic investments TWSE/TPEx-listed companies $ 15,469,550 Stocks unlisted 110,713 $ 15,580,263		December 31,2023
			0.03%~0.6% December 31,2023
	Non-current Domestic investments TWSE/TPEx-listed companies Stocks unlisted
				$ 14,670,647 103,902 $ 14,774,549

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

• 29 -

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

VIII. Notes receivable and trade receivable

Notes receivable and trade receivable
Notes receivable Measured at amortized cost Gross carrying amount Less: Loss allowance Trade receivables Measured at amortized cost Gross carrying amount Less: Loss allowance	December 31,2024 $ 14,850 ( 173) $ 14,677 $ 225,302 ( 1,940) $ 223,362	December 31,2023
	( (	( (	$ 17,057 80) $ 16,977 $ 579,941 2,059) $ 577,882

Trade receivables

The average credit period for the Company’s sales of goods is 30 days. Before accepting new customers, the Company 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.

To mitigate credit risk, management has assigned 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 Company 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 Company’s credit risk has been significantly reduced.

The Company 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 Company 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 Company recognizes a 100% allowance for doubtful accounts for receivables overdue

• 30 -

for more than one year. However, collection activities continue, and any amounts recovered from collection are recognized in profit or loss.

The Company measures the loss allowance for receivables using a provision matrix

as follows:

December 31, 2024

December 31,	1,	2024
C Gross carrying amount Loss allowance (lifetime expected credit losses) ( Amortized cost December 31,	C	redit ratingA	C	redit ratingB	C	redit ratingC	C	redit ratingD	C	redit ratingE $ 86,331 339) $ 85,992 redit ratingE $ 374,763 100) $ 374,663	N	otes receivable		Total
		$ 68,959 345) $ 68,614 2023 redit ratingA	( C	$ 14,463 145) $ 14,318 redit ratingB	C	$ - - $ - redit ratingC	( C	$ 55,549 1,111) $ 54,438 redit ratingD	( C		( N	$ 14,850 173) $ 14,677 otes receivable	(	$ 240,152 2,113) $ 238,039 Total
Gross carrying amount Loss allowance (lifetime expected credit losses) Amortized cost	C
	(	$ 138,529 693) $ 137,836	(	$ 3,998 40) $ 3,958	(	$ 5,373 81) $ 5,292	(	$ 57,278 1,145) $ 56,133	(		(	$ 17,057 80) $ 16,977	(	$ 596,998 2,139) $ 594,859

The aging analysis of trade receivable is as follows:

Not overdue Less than 30 days 91 days and over Total	December 31,2024 $ 240,077 75 - $ 240,152	December 31,2023	December 31,2023
			$ 515,789 81,206 3 $ 596,998

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

Beginning balance Add: Impairment losses provided for the year Less: Impairment losses reversed for the year Ending balance		2024 $ 2,059 726 845) $ 1,940		2023
	(		(	$ 2,098 656 695) $ 2,059

The changes in the allowance for losses on notes receivable were 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

• 31 -

IX. Inventories

Inventories
Finished goods Semi-finished goods Work in progress Raw materials Supplies Inventory in transit Less: Loss allowance	December 31,2024 $ 460,309 72,691 14,891 135,435 35,673 391,806 1,110,805 ( 20,066) $ 1,090,739	December 31,2023
	(	(	$ 480,266 50,862 12,679 210,507 35,640 501,674 1,291,628 11,063) $ 1,280,565

The cost of goods sold recorded by the Company is all related to inventories. The cost of goods sold for 2024 and 2023 included inventory valuation losses (gain from inventory price recovery) of NT$9,003 thousand and (NT$6,043 thousand), respectively. The recovery of inventory net realizable value is due to the increase in selling prices of the inventory in specific markets.

X. Investments accounted for using the equity method

Investment in subsidiaries Unlisted companies Constant Holding Ltd. (CHL) Glory Ace Union Venture Capital Capital (Union Venture Capital) Wei Chen Investment Co. (Wei Chen) Taiwan Union International Investment Corporation (Taiwan Union International) UPC(M) Chemicals	December 31,2024 $ 22,064,988 663,271 334,233 366,689 1,290,704 1,717,547 $ 26,437,432	December 31,2023	December 31,2023
			$ 22,734,822 607,239 352,821 405,586 1,444,613 1,923,307 $ 27,468,388

The Company’s ownership interest and voting rights percentages in subsidiaries at the balance sheet date are as follows:

the balance sheet date are as follows:
Companyname CHL Glory Ace Union Venture Capital Wei Chen Taiwan Union International UPC(M) Chemicals	December 31,2024 100% 100% 100% 100% 100% 100%	December 31,2023
		100% 100% 100% 100% 100% 100%

• 32 -

The Company provides financial guarantees for bank loans of its directly and indirectly owned subsidiaries. Please refer to Note 28 and Table 2 for related information.

The Company's share of profits or losses and other comprehensive income of subsidiaries accounted for using the equity method for 2024 and 2023 is recognized based on the audited financial statements of each subsidiary for the same period.

XI. Impairment of property, plant and equipment

Cost Balance at January 1, 2023 Additions Disposals Reclassifications Balance at December 31, 2023 Accumulated depreciation Balance at January 1, 2023 Disposals Depreciation expense Balance at December 31, 2023 Net balance as of December 31, 2023 Cost Balance at January 1, 2024 Additions Disposals Reclassifications Balance at December 31, 2024 Accumulated depreciation Balance at January 1, 2024 Disposals Depreciation expense Balance at December 31, 2024 Net balance as of December 31, 2024		Land		Buildings	Machinery and equipment	Warehouse equipment	Other equipment	C	onstruction 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		$ 838,282 - - 16,883 $ 855,165 $ 486,931 - 18,962 $ 505,893 $ 349,272 $ 855,165 - - 19,178 $ 874,343 $ 505,893 - 19,749 $ 525,642 $ 348,701	$ 1,164,236 - ( 5,828 ) 11,349 $ 1,169,757 $ 934,900 ( 4,900 ) 58,392 $ 988,392 $ 181,365 $ 1,169,757 - ( 7,617 ) 19,230 $ 1,181,370 $ 988,392 ( 7,486 ) 58,728 $ 1,039,634 $ 141,736	$ 675,352 - ( 8,755 ) 24,297 $ 690,894 $ 468,936 ( 8,740 ) 44,144 $ 504,340 $ 186,554 $ 690,894 - - 690 $ 691,584 $ 504,340 - 43,953 $ 548,293 $ 143,291	$ 736,135 3,837 ( 8,165 ) 20,186 $ 751,993 $ 574,956 ( 7,866 ) 41,808 $ 608,898 $ 143,095 $ 751,993 10,683 ( 3,609 ) 23,252 $ 782,319 $ 608,898 ( 3,588 ) 40,872 $ 646,182 $ 136,137	( (	$ 24,308 127,228 - 72,715) $ 78,821 $ 78,821 $ 78,821 155,987 - 149,172) $ 85,636 $ 85,636	$ 4,565,211 131,065 ( 22,748 ) - $ 4,673,528 $ 2,465,723 ( 21,506 ) 163,306 $ 2,607,523 $ 2,066,005 $ 4,673,528 166,670 ( 11,226 ) ( 86,822) $ 4,742,150 $ 2,607,523 ( 11,074 ) 163,302 $ 2,759,751 $ 1,982,399

The Company assessed and determined that there was no impairment in 2024 and

2. 33 -

The Company's property, plant and equipment are depreciated on a straight-line basis over the following 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 15 years Warehouse equipment 5 to 15 years Other equipment 3 to 20 years

XII. Lease agreements

(I) Right-of-use assets

December 31, 2024 December 31, 2023 Carrying amount of right-of-use assets Buildings $ 20,394 $ 2,163 2024 2023 Depreciation expense of right-of-use assets Buildings $ 10,836 $ 10,313 Lease liabilities December 31, 2024 December 31, 2023 Carrying amount of lease liabilities Current $ 10,195 $ 1,775 Non-current $ 10,643 $ 424

(II) Lease liabilities

The discount rate ranges for lease liabilities are as follows:

Buildings	December 31,2024 1.80%	December 31,2023
		1.80%

(III) Significant lease activities and terms

The Company also leases buildings for office use, with a lease term of 3 years. Upon the termination of the lease term, the Company has no preferential purchase rights to the leased buildings, and it is agreed that the Company shall not sublease or transfer all or part of the leased assets without the lessor's consent.

• 34 -

(IV) Other lease information

Other lease information
Short-term lease expenses Total cash outflow from leases		2024 $ 17,553 $ 28,437		2023
				$ 22,054 $ 32,792

The Company 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.

XIII.

Other assets.

Other assets.
Current Prepayments for suppliers Excess Business Tax paid Prepaid expenses Non-current Refundable deposits Long-term prepaid expenses Prepaid equipment payments	December 31,2024 $ 121 5,763 66,304 $ 72,188 $ 36,883 60,400 978 $ 98,261	December 31,2023
			$ 8,840 25,198 46,269 $ 80,307 $ 27,113 8,022 978 $ 36,113

XIV. Borrowings

• Long term borrowings

Long-term borrowings
Unsecured borrowings Bank credit borrowings Revolving credit borrowings	December 31,2024 $ 400,000 11,730,000 $ 12,130,000	December 31,2023
			$ 400,000 11,820,000 $ 12,220,000

The Company's long-term borrowings include:

Fixed-rate borrowings: Unsecured NTD loans	Maturitydate	Effective Interest rate 1.80% 2.36% 1.82%	December 31, 2024 $ - 330,000 -	December 31, 2023
	Line of credit available for revolving use until November 2025 Line of credit available for revolving use until February 2027 Line of credit available for revolving use until May 2025			$ 1,470,000 - 1,000,000

(To be continued)

• 35 -

(Continued from the previous page)

ed from the previous	page)
Floating-rate borrowings: Unsecured NTD loans Total long-term borrowings	Maturitydate Line of credit available for revolving use until May 2026 Line of credit available for revolving use until October 2025 Line of credit available for revolving use until October 2026 Line of credit available for revolving use until October 2025 Line of credit available for revolving use until May 2026 Line of credit available for revolving use until December 2025 Line of credit available for revolving use until December 2026 Line of credit available for revolving use until May 2025 Line of credit available for revolving use until November 2028 Line of credit available for revolving use until May 2026 Line of credit available for revolving use until December 2025 Line of credit available for revolving use until December 2026 Line of credit available for revolving use until November 2025 Line of credit available for revolving use until May 2026 Line of credit available for revolving use until April 2027 Subtotal of fixed-rate borrowings Lump-sum repayment at maturity in November 2025 Lump-sum repayment at maturity in May 2027 Line of credit available for revolving use until May 2025 Line of credit available for revolving use until May 2026 Subtotal of floating-rate borrowings	Effective Interest rate 2.03% 1.83% 2.00% 1.73% 2.06%/1.85% 1.79% 2.22% 1.70% 2.21%/1.96% 2.09% 1.87% 1.95% 1.80% 1.89% 2.10% 1.81% 2.00% 1.75% 1.92%		December 31, 2024 $ 1,000,000 - 770,000 - 1,000,000 - 450,000 - 4,000,000 680,000 - 500,000 - - 1,500,000 10,230,000 - 400,000 - 1,500,000 1,900,000 $ 12,130,000		December 31, 2023
						$ - 750,000 - 300,000 1,000,000 500,000 - 650,000 2,800,000 - 250,000 - 600,000 1,000,000 - 10,320,000 400,000 - 1,500,000 - 1,900,000 $ 12,220,000

• 36 -

XV. 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

The main conditions for issuance of each series of domestic secured corporate

bonds are as follows:

Series	Issuanceperiod	Total issuance amount $ 6,000,000 3,000,000	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		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.

XIV. Accounts payable

The Company’s accounts payable are mainly incurred from operations, with an average credit period of 30 days. The Company has a financial risk management policy to ensure that all payables are settled within the pre-agreed credit terms.

XVII. Other liabilities

XVIII.	Current Other payables Salaries and bonuses payable Sales freight payable Equipment payments payable Interest payable Utilities payable Others Current Other liabilities Contract liabilities Others Provisions Non-current Employee benefits	December 31,2024 $ 27,509 4,726 8,015 27,825 13,937 56,598 $ 138,610 $ 55,870 3,354 $ 59,124 December 31,2024 $ 16,006	December 31,2023	December 31,2023
			$ 34,802 5,823 2,707 30,158 11,795 55,893 $ 141,178 $ 40,559 3,240 $ 43,799 December 31,2023
				$ 14,196

• 37 -

The employee benefits provision is the estimated provision for employee pension calculated according to the Company’s employee pension regulations. The present value of this long-term employee benefit obligation is calculated by a qualified actuary at each balance sheet date.

XIX. Post-employment benefit plans

(I) Defined contribution plans

The Company adopts the pension system of the Labor Pension Act, which is a government-managed defined contribution pension plan. The Company contributes 6% of employees' monthly salaries to their individual accounts at the Bureau of Labor Insurance.

(II) Defined benefit plans

The Company's pension system under the “Labor Standards Act” is a government-managed 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. The Company monthly contributes 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 Company has no right to influence the investment management strategy.

The amounts of the defined benefit plans included in the parent company’s only balance 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	December 31,2023
	(	(	$ 524,583 288,762) $ 235,821

• 38 -

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 Company 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

• 39 -

deposits through self-management and entrusted management. However, the amount of income allocated to the Company’s plan assets is calculated based on a 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 Company’s defined benefit obligations is calculated by

a qualified actuary. The significant assumptions at the measurement date are as follows:

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:

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	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

• 40 -

XX. 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 losses, 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.

• 41 -

(III) Retained earnings and dividend policy

According to the Company's Articles of Incorporation regarding the earnings 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 21(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 losses with the legal reserve for 2024 on May 28, 2025.

(IV) Special reserve

• 42 -

When the Company 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

operations
Beginning balance Arising during the year Exchange differences of foreign operations Related income tax Ending balance	2024 ( $ 735,830 ) 1,416,787 ( 8,280) $ 672,677	2023
		( $ 401,613 ) ( 334,257 ) 40 ($ 735,830)

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

Beginning balance Arising during the year Unrealized gains or losses - equity instruments Share of the subsidiaries accounted for using the equity method Cumulative gains or losses from disposal of equity instruments transferred to retained earnings Ending balance	2024 $ 11,356,839 805,714 ( 193,489 ) ( 21,404) $ 11,947,660		2023
		(	$ 6,624,036 4,551,329 183,799 2,325) $ 11,356,839

• 43 -

(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

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.

XXI. Net loss for the year

The net loss for the year includes the following items:

(I) Interest Income

(I)	Interest Income
				2024			2023
	Bank deposits		$	1,022		$	1,038
(II)	Other income
				2024			2023
	Operating lease rental income		$	81,562		$	80,100
	Dividend income			330,514			317,707
	Other income			17,696			2,259
			$	429,772		$	400,066
(III)	Other gains and losses
				2024			2023
	Net foreign currency exchange
	gains (losses)		$	17,636	(	$	663 )
	Loss on disposal of property,
	plant and equipment	(		152 )	(		1,019 )
	Bank processing fees
	(including corporate bonds
	payable)	(		15,944 )	(		47,007 )
	Others	(		16,156)	(		15,361)
		(	$	14,616)	(	$	64,050)

• 44 -

(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 Long-term prepaid expenses Total Summary of depreciation expenses by function Cost of goods sold Operating expenses Other losses Summary of amortization expenses by function Cost of goods sold Operating expenses (VI) Employee benefits expenses Short-term employee benefits Post-employment benefits (Note 19) Defined contribution plans Defined benefit plans Subtotal of post-employment benefits Share-based payments Equity settlement Other employee benefits Total employee benefit expenses Summary of employee benefit expenses by function Operating costs Operating expenses		2024 $ 286,441 480 $ 286,921 2024 $ 163,302 10,836 16,106 $ 190,244 $ 150,880 16,095 7,163 $ 174,138 $ 10,411 5,695 $ 16,106 2024 $ 327,058 10,992 5,519 16,511 - 6,980 $ 350,549 $ 171,796 178,753 $ 350,549		2023
				$ 228,996 134 $ 229,130 2023
				$ 163,306 10,313 17,254 $ 190,873 $ 156,980 15,415 1,224 $ 173,619 $ 11,805 5,449 $ 17,254 2023
				$ 306,739 10,497 5,560 16,057 3,782 8,161 $ 334,739 $ 165,417 169,322 $ 334,739

• 45 -

Employee benefit expenses Salary and wages Labor and health insurance Pension expense - defined contribution plans Pension expense - defined benefit plans Director remuneration Other employment expenses Total employee benefit expenses				2024						2023
	Operatingcosts			Operating expenses		Total	Operatingcosts			Operating expenses		Total
		$ 146,518 13,374 5,470 2,649 - 3,785 $ 171,796		$ 149,094 11,623 5,522 2,870 6,449 3,195 $ 178,753		$ 295,612 24,997 10,992 5,519 6,449 6,980 $ 350,549		$ 139,191 13,353 5,366 2,780 - 4,727 $ 165,417		$ 140,138 11,274 5,131 2,780 6,565 3,434 $ 169,322		$ 279,329 24,627 10,497 5,560 6,565 8,161 $ 334,739

1. As of December 31, 2024 and 2023, the Company's number of employees was 233 and 229, respectively, of which the number of directors who did not concurrently serve as employees was 7 for both years. Their calculation basis is consistent with that for employee benefit expenses.

2. The average employee benefit expenses for 2024 and 2023 were NT$1,523 thousand and NT$1,478 thousand, respectively; the average employee salary and wages were NT$1,308 thousand and NT$1,258 thousand, respectively; the average employee salary expense adjustment change rate was 4%.

3. The Company's compensation policy is determined based on the current year's operating performance and future development. The compensation for directors, managers, and employees is described as follows:

Directors

• (1) According to Article 28 of the Company’s article of incorporation and the relevant laws and regulations, if the Company has earnings after offsetting the prior years’ accumulated losses, if any, the Company should distribute no less than 1% of the earnings as employees’ compensation and no more than 1% of the earnings as directors’ compensation. In consideration of the business results and with reference to the performance contribution, the Company gives directors reasonable compensation, which is distributed after being reviewed by the compensation committee and the Board.

• (2) In accordance with Article 18 of the Company's Articles of Incorporation, the Company shall pay directors' remuneration based on their participation in the operations and contribution to the Company and the remuneration is reported to the compensation committee for deliberation before payment.

• (3) Directors' performance and the rationality of the overall rewards shall be assessed regularly based on the Company's current status and relevant

• 46 -

laws and regulations. The remuneration system is reported to the compensation committee and the Board for review.

Managers

• (1) The salary, various allowances/bonuses or incentives and other remunerations paid by the Company to managers shall be distributed in accordance with the organizational rules of the compensation committee and the relevant regulations on the remuneration of managers.

• (2) The issue of managers' bonuses is subject to the performance appraisal which is divided into (a) Financial indicators: Revenue achievement percentage and profit achievement percentage; (b) Personal performance indicators: Achievement percentage of annual key performance indicators (KPI) and the demonstration of the management capability and sustainable operations capability to realize the Company's core values. The performance results of the comprehensive calculations are linked to the distribution of remuneration and the relevant reward measures are amended according to the business conditions and regulations.

Employees

• (1) The Company adjusts salaries or issues related bonuses based on the consumer price index, external competition, the Company's annual operating performance, and individual performance to ensure that compensation and benefits meet market standards and internal/external equity.

• (2) The Company also has work rules and performance management regulations as a basis for linking with the compensation system.

• (VII) Employee compensation 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

• 47 -

Total foreign currency exchange gains Total foreign currency exchange losses Net gains (losses)		2024 $ 30,956 13,320) $ 17,636		2023
	(		( (	$ 30,969 31,632) $ 663)

XXII. Income tax

• (I) Income tax recognized in profit or loss

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

Current income tax Adjustments of prior years Deferred income tax Arising during the year Income tax (benefit) expense recognized in profit or loss		2024 $ 1,495 2,990 $ 4,485	2023
			( $ 41,956 ) 750 ($ 41,206)

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

expense is as follows:
		2024		2023
Loss before income tax	($	2,379,370)	($	324,032)
Income tax benefit calculated
at the statutory tax rate on
pre-tax net loss	( $	475,874 )	( $	64,806 )
Permanent differences		439,124		84,356
Tax-exempt income	(	66,100 )	(	63,541 )
Unrecognized loss
carryforwards		105,840		44,741
Adjustments of prior years'
income tax		1,495	(	41,956)
Income tax (benefit) expense
recognized in profit or loss	$	4,485	($	41,206)

• 48 -

(II) Income tax directly 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 (III) Current income tax assets and liabilities December 31,2024 Current income tax assets Refundable tax $ 182 Current income tax liabilities Income tax payable $ 1,495	2023	2023
	( $ 40 ) 590 550 $ 550 December 31,2023
		$ 116 $ -

(IV) 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 Defined benefit pension plans Exchange differences of foreign operations Others Deferred tax liabilities Temporary differences Overseas equity investment income Land revaluation gains		Beginning balance $ 2,210 47,150 22,860 7,330 $ 79,550 $ 118,990 99,828 $ 218,818	Recognized in profit or loss $ 1,800 ( 3,730 ) - 1,860 ($ 70) $ 2,920 - $ 2,920	Recognized in other comprehensive income $ - ( 4,990 ) ( 8,280 ) - ($ 13,270) $ - - $ -		Ending balance
						$ 4,010 38,430 14,580 9,190 $ 66,210 $ 121,910 99,828 $ 221,738

• 49 -

2023

2023
Deferred tax assets Temporary differences Inventory loss allowance Defined benefit pension plans Exchange differences of foreign operations Others Deferred tax liabilities Temporary differences Overseas equity investment income Land revaluation gains		Beginning balance $ 3,420 50,920 22,820 2,170 $ 79,330 Beginning balance $ 117,470 99,828 $ 217,298	Recognized in profit or loss ( $ 1,210 ) ( 3,180 ) - 5,160 $ 770 Recognized in profit or loss $ 1,520 - $ 1,520	Recognized in other comprehensive income $ - ( 590 ) 40 - ($ 550) Recognized in other comprehensive income $ - - $ -		Ending balance
						$ 2,210 47,150 22,860 7,330 $ 79,550 Ending balance
						$ 118,990 99,828 $ 218,818

• (V) Aggregated amounts of temporary differences related to investments and not recognized in deferred tax liabilities

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. (VI) Income tax approval

The Company's profit-seeking enterprise income tax returns filed up to the 2022 fiscal year have been approved by the tax authorities.

XXIII. Loss per share

Unit: NT$ per share

Basic loss per share		2024 $ 1.79)		2023
	(		(	$ 0.21)

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

• 50 -

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
	(

XXIV. Share-based payment agreements

• (I) 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:

Employee stock options Outstanding at the beginning of the period Exercised during the year Forfeited during the year Outstanding at the end of the period Exercisable at the end of the period	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:

• 51 -

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.

XXV. Capital risk management

The Company manages capital to ensure that it can continue as a going concern by optimizing the balance between debt and total assets to maximize shareholder returns. There is no expected significant change in the short term based on the Company’s overall strategy.

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

The Company reviews its capital structure and verifies its components based on the financial information of the consolidated financial statements. Please refer to the consolidated financial statements for relevant information.

XXVI. 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		Carrying amount				Fair value
				Level 1		Level 2		Level 3		Total
		$ 2,997,382		$ -		$ 2,999,909		$ -		$ 2,999,909

• 52 -

December 31, 2023

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
		$ 2,996,364		$ -		$ 2,999,919		$ -		$ 2,999,919

Except as described above, the Company’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.

(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 Domestic stocks not listed on TWSE/TPEx Total December 31, 2023 Financial assets measured at FVTOCI Equity instrument investments Domestic stocks listed on TWSE/TPEx Domestic stocks not listed on TWSE/TPEx Total		Level 1 $ 15,469,550 - $ 15,469,550 Level 1 $ 14,670,647 - $ 14,670,647		Level 2 $ - - $ - Level 2 $ - - $ -		Level 3 $ - 110,713 $ 110,713 Level 3 $ - 103,902 $ 103,902		Total
								$ 15,469,550 110,713 $ 15,580,263 Total
								$ 14,670,647 103,902 $ 14,774,549

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

1. Reconciliation of Level 3 fair value measurements of financial instruments

2. 53 -

2024

==> picture [384 x 316] intentionally omitted <==

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

Financial assets at
Financial assets FVTOCI (equity
instrument
investments)
Beginning balance $ 103,902
Recognized in other comprehensive
income (unrealized gains or losses on
financial assets measured at
FVTOCI) 6,811
Ending balance $ 110,713
2023
Financial assets at
Financial assets FVTOCI (equity
instrument
investments)
Beginning balance $ 101,634
Recognized in other comprehensive
income (unrealized gains or losses on
financial assets measured at
FVTOCI) 2,268
Ending balance $ 103,902
----- End of picture text -----

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

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

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

Domestic unlisted equity investments are primarily estimated at fair value 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.

• 54 -

(III) Financial instrument type

Financial instrument type
Financial assets Financial assets measured at amortized cost (Note 1) Financial assets measured at FVTOCI Financial liabilities Financial liabilities measured at amortized cost (Note 2)	December 31,2024 $ 366,333 15,580,263 15,672,887	December 31,2023
		$ 771,427 14,774,549 15,932,904

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

Note 2: The balance includes financial liabilities measured at amortized cost, such as accounts payable, other payables, corporate bonds payable, long-term borrowings, and guarantee deposits received.

• (IV) Financial risk management objectives and policies

The Company’s primary financial instruments are equity investments, receivables, payables, and borrowings. The Company’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 the Company’s 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 Company’s operating activities expose it to foreign exchange rate change risk and interest rate change risk.

There have been no changes in the Company’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 engages in foreign currency-denominated sales and purchase transactions, resulting in exposure to foreign exchange risk.

• 55 -

Approximately 45% of the Company’s sales and 90% of its costs are denominated in non-functional currencies.

Please refer to Note 30 for the carrying amounts of monetary assets and monetary liabilities denominated in non-functional currencies as of the balance sheet date.

Sensitivity analysis

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

The following table shows the Company's sensitivity analysis when the NTD (functional currency) increases and decreases by 3% against relevant foreign currencies. 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 year-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 (functional currency) appreciates by 3% against relevant currencies; the impact on pre-tax net loss when the NTD depreciates by 3% against relevant foreign currencies would be the same amount but negative.

amount but negative.
Profit or loss	Impact of USD
	2024 $ 6,524	2023
		$ 15,058

The above impacts mainly arise from the USD-denominated receivables and payables outstanding as of the balance sheet date.

The Company's sensitivity to exchange rates has decreased compared to the previous year, mainly due to a decrease in period-end USD payables, resulting in a decrease in net foreign-currency liabilities. (2) Interest rate risk

The Company’s interest rate exposure arises from borrowing funds at both fixed and floating rates. The Company periodically evaluates whether to use hedging instruments to align its interest rate views with

• 56 -

established risk appetite, ensuring the most cost-effective hedging strategy.

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

Fair value interest rate risk - Financial liabilities Cash flow interest rate risk - Financial liabilities	December 31,2024 $ 13,248,220 1,900,000	December 31,2023
		$ 13,318,563 1,900,000

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

The Company is exposed to cash flow interest rate risk due to its floating-rate bank borrowings. These situations align with the Company'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 Company’s pre-tax net loss for both 2024 and 2023 would increase/decrease by NT$9,500 thousand, assuming all other variables remain constant.

The Company's sensitivity to interest rates has not changed compared to the previous year, mainly because the amount of floating-rate borrowings is the same this year.

• 57 -

(3) Other price risks

The Company is exposed to equity price risk due to equity security investments. These equity investments are not held for trading but are strategic investments, and the Company does not actively trade them. The Company’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 other comprehensive income for 2024 and 2023 would increase/decrease by NT$779,013 thousand and NT$738,727 thousand, respectively, due to changes in the fair value of financial assets measured at FVTOCI.

The Company’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 period.

2.

Credit risk

Credit risk refers to the risk of financial loss caused by a counterparty's failure to fulfill 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, is primarily from the carrying amounts of financial assets recognized in the parent company only balance sheet.

The Company’s policy is to transact only with reputable counterparties. Before accepting new customers, the Company 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 Company individually reviews the recoverable amounts of receivables at the balance sheet date to ensure that appropriate impairment losses are recognized for unrecoverable receivables.

The Company’s trade receivables are from a large number of customers, and the Company has no significant credit exposure to any single counterparty or group of counterparties with similar characteristics. In 2024 and 2023, the

• 58 -

Company's credit risk concentration for any individual customer did not exceed 10% of total monetary assets.

The Company's credit risk by geographic region is primarily concentrated in Taiwan, accounting for approximately 63% and 36% of total trade receivable as of December 31, 2024 and 2023, respectively.

1. Liquidity risk

The Company manages and maintains sufficient cash to support operations and mitigates the impact of cash flow fluctuations. The Company’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 Company. The Company’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 Company could be required to repay. Therefore, bank borrowings that the Company 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.

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(2)	Within 3 months 3 months - 1 year 1-5years Non-derivative financial liabilities December 31, 2024 Non-interest-beari ng liabilities $ 559,203 $ - $ - Lease liabilities 2,621 7,864 10,747 Floating-rate instruments - - 1,962,641 Fixed-rate instruments - - 13,808,684 $ 561,824 $ 7,864 $ 15,782,072 Non-derivative financial liabilities December 31, 2023 Non-interest-beari ng liabilities $ 737,563 $ - $ - Lease liabilities 450 1,351 432 Floating-rate instruments - - 1,949,047 Fixed-rate instruments - - 13,852,443 $ 738,013 $ 1,351 $ 15,801,922 Financing limits December 31,2024 December 31,2023 Unsecured bank financing limits - Utilized amount $ 12,130,000 $ 12,220,000 - Unutilized amount 9,284,171 8,987,515 $ 21,414,171 $ 21,207,515	Within 3 months 3 months - 1 year 1-5years Non-derivative financial liabilities December 31, 2024 Non-interest-beari ng liabilities $ 559,203 $ - $ - Lease liabilities 2,621 7,864 10,747 Floating-rate instruments - - 1,962,641 Fixed-rate instruments - - 13,808,684 $ 561,824 $ 7,864 $ 15,782,072 Non-derivative financial liabilities December 31, 2023 Non-interest-beari ng liabilities $ 737,563 $ - $ - Lease liabilities 450 1,351 432 Floating-rate instruments - - 1,949,047 Fixed-rate instruments - - 13,852,443 $ 738,013 $ 1,351 $ 15,801,922 Financing limits December 31,2024 December 31,2023 Unsecured bank financing limits - Utilized amount $ 12,130,000 $ 12,220,000 - Unutilized amount 9,284,171 8,987,515 $ 21,414,171 $ 21,207,515	Within 3 months 3 months - 1 year 1-5years Non-derivative financial liabilities December 31, 2024 Non-interest-beari ng liabilities $ 559,203 $ - $ - Lease liabilities 2,621 7,864 10,747 Floating-rate instruments - - 1,962,641 Fixed-rate instruments - - 13,808,684 $ 561,824 $ 7,864 $ 15,782,072 Non-derivative financial liabilities December 31, 2023 Non-interest-beari ng liabilities $ 737,563 $ - $ - Lease liabilities 450 1,351 432 Floating-rate instruments - - 1,949,047 Fixed-rate instruments - - 13,852,443 $ 738,013 $ 1,351 $ 15,801,922 Financing limits December 31,2024 December 31,2023 Unsecured bank financing limits - Utilized amount $ 12,130,000 $ 12,220,000 - Unutilized amount 9,284,171 8,987,515 $ 21,414,171 $ 21,207,515		1-5years
			$ 12,220,000 8,987,515 $ 21,207,515

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XXVII. Related Party Transactions

Transactions between the Company and related parties are as follows:

(I) Related party names and relationships

Related party name Relationship with the Company Lien Hwa Industrial Holdings Same Chairman/Investor with significant influence Lien Hwa Property Development Subsidiary of Lien Hwa Industrial Corporation Holdings Linde LienHwa Industrial Gases Co., Associate of Lien Hwa Industrial Ltd. Holdings Asia Union Electronic Chemical Associate of Linde LienHwa Industrial Corp. (AUECC) Gases Co., Ltd. Harbinger Venture Management Co., Ltd. (Harbinger Venture Management) Same Chairman The Company is a director of the Lienhwa United LPG company Zhongshan Unicizers Industrial Co., Subsidiary Ltd. Zhuhai Unicizers Subsidiary Taizhou Union Chemical Subsidiary Zhenjiang Union Subsidiary Panjin Union Chemical Subsidiary UPC(M) Chemicals Subsidiary UPCM Trading (Vietnam) Subsidiary UPCM Trading (Thailand) Subsidiary

(II) Sales income

Sales income
Account item Sales	Relatedpartycategory Subsidiary		2024 $ 1,217,323		2023
					$ 2,380,203

(III) Purchases

Purchases
Relatedpartycategory Subsidiary Associates with investors with significant influence		2024 $ 796,936 13,620 $ 810,556		2023
				$ 786,441 14,979 $ 801,420

• 61 -

(IV) Lease agreements

Lease agreements
Account item Lease liabilities Interest expense	Related party name Lien Hwa Property Development Corporation Lien Hwa Property Development Corporation	December 31, 2024 $ 20,838 $ 480	December 31, 2023
				$ 2,199 $ 134

• (V) Lease agreements

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:

Relatedpartyname AUECC Lienhwa United LPG		2024 $ 19,377 5,530 $ 24,907		2023
				$ 18,967 5,530 $ 24,497

(VI) Service revenue

Service revenue
Account item Other income	Related party category / Name Associates with investors with significant influence Lien Hwa Property Development Corporation		2024 $ 48 512 $ 560		2023
					$ 46 562 $ 608

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

(VII) Trade receivable from related parties (excluding loans to related parties)

Account item Trade receivables	Related party category Subsidiary	December 31, 2024 $ 12,357	December 31, 2023	December 31, 2023
				$ 326,700

• 62 -

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

(IX) (X) (XI)	Account item Related party category / Name Other receivables Lienhwa United LPG Linde LienHwa Industrial Gases Co., Ltd. Lien Hwa Property Development Corporation Subsidiary Refundable deposits Account item Related party name Other non-current assets Lien Hwa Property Development Corporation Accounts payable to related parties Account item Related party category Trade payables Subsidiary Associates with investors with significant influence Guarantee deposit received Account item Related party name Guarantee deposit received AUECC	December 31, 2024 $ 1,584 638 81 155 $ 2,458 December 31, 2024 $ 1,307 December 31, 2024 $ 88,694 1,489 $ 90,183 December 31, 2024 $ 3,685	December 31, 2023	December 31, 2023
			$ 1,580 932 121 96 $ 2,729 December 31, 2023
			$ 1,571 December 31, 2023
			$ 5,845 1,363 $ 7,208 December 31, 2023
				$ 3,685

Transactions between the Company and related parties are made on normal

commercial terms.

• (XII) 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 $ 22,278 237 - $ 22,515		2023
				$ 29,382 463 516 $ 30,361

• 63 -

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

XXVIII. Significant Contingent Liabilities and Unrecognized Commitments

In addition to those described in other notes, the Company’s significant

commitments and contingencies as of the balance sheet date are as follows:

• (I) As of December 31, 2024 and 2023, the Company’s amounts of letters of credit issued but documents outstanding for the purchase of raw materials and machinery and equipment were NT$55,079 thousand and NT$21,835 thousand, respectively.

• (II) The Company’s unrecognized contractual commitments are as follows:

Purchase of raw materials, auxiliary materials, and spare parts Purchase of property, plant and equipment	December 31,2024 $ 486,325 $ 27,987	December 31,2023	December 31,2023
			$ 598,589 $ 30,185

• (III) As of December 31, 2024, the amounts of financial guarantees provided by the Company for the borrowing limits of subsidiaries are as follows:

• Nanchong Unicizers - CNY 490,000 thousand.

• Panjin Union Materials - CNY 201,500 thousand.

• Panjin Union Chemical - RMB 935,000 thousand.

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

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

Foreign currencies other than the functional currencies of the Company are presented in aggregate below. The exchange rates disclosed are the rates used to translate these foreign currencies into the functional currencies.

Foreign-currency assets and liabilities with significant influence are as follows:

December 31, 2024

Financial assets Monetary items USD Non-monetary items Investments accounted for using the equity method USD Financial liabilities Monetary items USD December 31, 2023 Financial assets Monetary items USD Non-monetary items Investments accounted for using the equity method USD		Foreign currency $ 3,253 $ 745,640 $ 9,886 Foreign currency $ 2,154 $ 822,842	Exchange rate 1 USD: 32.785 NTD 1 USD: 32.785 NTD 1 USD: 32.785 NTD Exchange rate 1 USD: 30.705 NTD 1 USD: 30.705 NTD	Carryingamount	Carryingamount
				$ 106,650 $ 24,445,806 $ 324,113 Carryingamount
					$ 66,139 $ 25,265,368

(To be continued)

• 65 -

(Continued from the previous page)

Financial liabilities Monetary items USD		Foreign currency $ 18,501	Exchange rate 1 USD: 30.705 NTD	Carryingamount	Carryingamount
					$ 568,073

The (realized and unrealized) exchange gains and losses of foreign currencies with

significant influence are as follows:

Foreign currency USD	2024	Net exchange gain(loss) $ 17,636	2023
	Exchange rate 1 USD: 32.785 NTD		Exchange rate 1 USD: 30.705 NTD	Net exchange gain(loss)
				(	$ 663)

XXXI. 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.

• Cumulative purchases or sales of the same securities amounting to NT$300 million or 20% or more of paid-in capital - None.

• 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.

• Information on Investees - Table 6.

• (III) 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 7.

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• 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 8.

  • (2) Sales amounts and percentages and period-end balances and percentages of related trade receivable - Table 8.

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

  • (4) Period-end balances and purposes of notes endorsements/guarantees or collateral provided - Note 28 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.

• (IV) Information on major shareholders: Names, shareholdings, and percentages of shareholders holding 5% or more of shares - Table 9.

• 67 -

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	Amount Disbursed Interest Rate Range	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 Chemical Plastics Taizhou Union Chemical Plastics Taizhou Union Chemical Plastics Taizhou Union Chemical Plastics	ZhenJiang Union Torch Estate Panjin Union Chemical Panjin Union Logistics Panjin Union Materials Taizhou Union Chemical Taizhou Union Chemical Plastics Zhuhai Unicizers Union Hong Kong Union Hong Kong UPCM Trading (Thailand) Zhuhai Unicizers Zhongshan Unicizers Industrial Co., Ltd. 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)

• 68 -

(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 Chemical Plastics Taizhou Union Chemical Plastics Taizhou Union Chemical Plastics Taizhou Union Chemical Plastics Zhongshan Unicizers Industrial Co., Ltd. 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 Industrial Co., Ltd. Zhuhai Unicizers Zhongshan Unicizers Industrial Co., Ltd. Nanchong Unicizers Taizhou Union Logistics Taizhou Union Chemical Plastics Zhuhai Unicizers Zhongshan Unicizers Industrial Co., Ltd. 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)

• 69 -

(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 Chemical 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 Chemical 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 Chemical 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.

• 70 -

UPC Technology Corporation and Subsidiaries Table of Endorsements/Guarantees for Others January 1, 2024 to December 31, 2024

Table 2

Unit: NT$ thousand, unless otherwise stated

No. (Note 1)	Name of Endorser/ Guarantor	Endorsed/Guaranteed Party	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 Chemical 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.

• 71 -

UPC Technology Corporation and Subsidiaries

Securities Held at the End of the Period

As of December 31, 2024

Table 3

In Thousands of New Taiwan Dollars

Table 3							In Thousands of	New Taiwan Dollars
Holding Company	Type and Name of Securities (Note 1)	Relations with Issuer (Note 2)	Account Item		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 TongDa 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)

• 72 -

(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 6 and Table 7.

• 73 -

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) (%)	Payments Term	Unit Price	Payments Term	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 Industrial Co., Ltd. Zhenjiang Union Taizhou Union Chemical Plastics Panjin Union Chemical Nanchong Unicizers The Company Zhongshan Unicizers Industrial Co., Ltd. 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)

• 74 -

(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) (%)	Payments Term	Unit Price	Payments Term	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 Industrial Co., Ltd. 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%

• 75 -

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	Handling Method
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 Industrial Co., Ltd. Zhongshan Unicizers Industrial Co., Ltd. Zhongshan Unicizers Industrial Co., Ltd. Taizhou Union Chemical Taizhou Union Chemical Taizhou Union Chemical Zhenjiang Union Zhenjiang Union Zhenjiang Union Panjin Union Chemical Panjin Union Chemical Taizhou Union Chemical Plastics Taizhou Union Chemical 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 Industrial Co., Ltd. Union Hong Kong Union Hong Kong Zhenjiang Union Zhongshan Unicizers Industrial Co., Ltd. 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 Chemical 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.

• 76 -

UPC Technology Corporation and Subsidiaries

Information on Investees

January 1, 2024 to December 31, 2024

Table 6									In Thousands of New Taiwan Dollars	In Thousands of New Taiwan Dollars	In Thousands of New Taiwan Dollars
Investing company name	Investee Name	Location	Principal Business Activities	Original Investment Amount		Period-End Holdings			Investee Profit (Loss) for the Current Period	Investment Profit (Loss) Recognized for theCurrent Period	Remarks
				Period-End Investment Carrying Amount	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 7.

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.

• 77 -

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 7

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 Industrial Co., Ltd. Zhenjiang Union Zhuhai Unicizers Taizhou Union Chemical Taizhou Union Logistics Taizhou Union Chemical 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 Industrial Development Administration on June 17, 2024, therefore not subject to investment limits.

• 78 -

Unit: NT$ thousand

UPC Technology Corporation and Subsidiaries

Table of Significant Transactions with Investees in China

January 1, 2024 to December 31, 2024

Table 8

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 28 and Table 2)

• 79 -

UPC Technology Corporation Information on Major Shareholders

As of December 31, 2024

Table 9

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.

• 80 -

§Statements of Significant Accounting Items§

Item Statement of Assets, Liabilities, and Equity Statement of Cash Statement of Trade receivable Statement of Inventories Statement of Changes in Financial Assets at FVTOCI - Non-Current Statement of Changes in Investments Accounted for Using the Equity Method Statement of Changes in Property, Plant and Equipment Statement of Changes in Accumulated Depreciation of Property, Plant and Equipment Statement of Deferred Tax Assets Statement of Accounts Payable Statement of Other Payables Statement of Long-Term Borrowings Statement of Corporate Bonds Payable Statement of Deferred Tax Liabilities Statement of Profit or Loss Items Statement of Sales Revenue Statement of Operating Costs Statement of Operating Expenses Statement of Other Income and Expenses, Net Statement of Financial Costs Statement of Aggregated Employee Benefits, Depreciation, Depletion, and Amortization Expenses by Function for the Current Year

No./Index

Statement 1 Statement 2 Statement 3 Statement 4 Statement 5 Note 11 Note 11 Note 22 Statement 6 Note 17 Note 14 Note 15 Note 22 Statement 7 Statement 8 Statement 9 Note 21 Note 21 Note 21

• 81 -

UPC Technology Corporation

Statement of Cash

As of December 31, 2024

Statement 1

Unit: in thousands of New Taiwan Dollars, unless otherwise stated

Item Cash on hand and petty cash Demand deposits Foreign-currency demand deposits, including USD 723 thousand and CNY 106 thousand, at exchange rates of 1 USD to 32.785 NTD and 1 CNY to 4.561 NTD, respectively Checking deposits		Amount
		$ 169 43,329 24,172 20,565 $ 88,235

• 82 -

UPC Technology Corporation

Statement of Trade receivable

As of December 31, 2024

Statement 2	In Thousands of New	Taiwan Dollars
Customer code		Amount
007		$ 40,105
035		40,262
012		16,327
036		16,068
033		12,357
Others (Note)		100,183
Less: Loss allowance	(	1,940)
Total		$ 223,362

Note: The balance of each customer does not exceed 5% of the balance of this account.

• 83 -

UPC Technology Corporation

Statement of Inventories

As of December 31, 2024

Statement 3

In Thousands of New Taiwan Dollars

Item Finished goods Semi-finished goods Work in progress Raw materials Materials and auxiliary materials Inventory in transit Less: Loss allowance		Amount	Amount
		Cost $ 460,309 72,691 14,891 135,435 35,673 391,806 1,110,805 20,066) $ 1,090,739	Net	realizable value
	(			$ 462,386 69,969 14,915 135,057 35,722 392,353 $ 1,110,402

• 84 -

UPC Technology Corporation

Statement of Changes in Financial Assets at FVTOCI - Non-Current

January 1, 2024 to December 31, 2024

Statement 4

Unit: Shares in thousands, amounts in NT$ thousand

InvesteeName Domestic TWSE/TPEx-listed companies Lien Hwa Industrial Holdings MiTAC Holdings Domestic companies not listed on TWSE/TPEx Lienhwa United LPG Harbinger Venture Capital Harbinger VI Venture Capital Total	Beginningbalance Number of Shares Amount 153,290 $ 10,224,441 99,803 4,446,206 14,670,647 4,923 64,390 7 46 3,214 39,466 103,902 $ 14,774,549	Beginningbalance Number of Shares Amount 153,290 $ 10,224,441 99,803 4,446,206 14,670,647 4,923 64,390 7 46 3,214 39,466 103,902 $ 14,774,549	Increase duringthe	Increase duringthe	year(Note 2) Amount $ - - - - - - - $ -	Decrease duringtheyear Number of Shares Amount - $ - - - - - - - - - - - $ -	Decrease duringtheyear Number of Shares Amount - $ - - - - - - - - - - - $ -	Changes in unrealized gains/losses on financial assets ( $ 1,830,895 ) 2,629,798 798,903 7,076 ( 8 ) ( 257) 6,811 $ 805,714	Endingbalance Number of Shares Amount 165,553 $ 8,393,546 99,803 7,076,004 15,469,550 5,532 71,466 7 38 3,214 39,209 110,713 $ 15,580,263	Endingbalance Number of Shares Amount 165,553 $ 8,393,546 99,803 7,076,004 15,469,550 5,532 71,466 7 38 3,214 39,209 110,713 $ 15,580,263	Collateral or pledge status
	Number of Shares 153,290 99,803 4,923 7 3,214		Number of Shares 12,263 - 609 - -			Number of Shares - - - - -			Number of Shares 165,553 99,803 5,532 7 3,214
											None 〃 〃 〃 〃

Note 1: Par value is NT$10 per share.

Note 2: Decrease during the year is stock dividend received.

• 85 -

UPC Technology Corporation

Statement of Changes in Investments Accounted for Using the Equity Method

January 1, 2024 to December 31, 2024

Statement 5 Investee Name Non-TWSE/TPEx-listed companies CHL Glory Ace Union Venture Capital Wei Chen Taiwan Union International Malaysia	Beginningbalance Number of Shares Amount 433,310 $ 22,734,822 605 607,239 22,701 352,821 16,000 405,586 78,719 1,444,613 163,427 1,923,307 $ 27,468,388	Beginningbalance Number of Shares Amount 433,310 $ 22,734,822 605 607,239 22,701 352,821 16,000 405,586 78,719 1,444,613 163,427 1,923,307 $ 27,468,388	Increase duringtheyear Number of Shares Amount - $ - - - - - - - - - - - $ -	Increase duringtheyear Number of Shares Amount - $ - - - - - - - - - - - $ -	Decrease duringthe	Decrease duringthe	year(Note 2) Amount $ - - 27,736 ) 20,555 ) 41,721 ) - $ 90,012)	Share of investment profit or loss ( $ 1,920,338 ) 14,591 12,973 22,096 36,345 ( 328,685) ($ 2,163,018)		Unit: Shares in thousands, amounts in thousands of New Taiwan Dollars, unless otherwise stated Exchange differences arising from translation of financial statements Share of other comprehensive income Endingbalance Market price or net worth of equity Number of Shares Shareholding ratio % Amount $ 1,252,421 ( $ 1,917 ) 433,310 100 $ 22,064,988 $ 22,064,988 41,441 - 605 100 663,271 663,271 - ( 3,825 ) 22,701 100 334,233 334,233 - ( 40,438 ) 16,000 100 366,689 366,689 - ( 148,533 ) 78,719 100 1,290,704 1,290,704 122,925 - 163,427 100 1,717,547 1,717,547 $ 1,416,787 ($ 194,713) $ 26,437,432 $ 26,437,432	Unit: Shares in thousands, amounts in thousands of New Taiwan Dollars, unless otherwise stated Exchange differences arising from translation of financial statements Share of other comprehensive income Endingbalance Market price or net worth of equity Number of Shares Shareholding ratio % Amount $ 1,252,421 ( $ 1,917 ) 433,310 100 $ 22,064,988 $ 22,064,988 41,441 - 605 100 663,271 663,271 - ( 3,825 ) 22,701 100 334,233 334,233 - ( 40,438 ) 16,000 100 366,689 366,689 - ( 148,533 ) 78,719 100 1,290,704 1,290,704 122,925 - 163,427 100 1,717,547 1,717,547 $ 1,416,787 ($ 194,713) $ 26,437,432 $ 26,437,432	Unit: Shares in thousands, amounts in thousands of New Taiwan Dollars, unless otherwise stated Exchange differences arising from translation of financial statements Share of other comprehensive income Endingbalance Market price or net worth of equity Number of Shares Shareholding ratio % Amount $ 1,252,421 ( $ 1,917 ) 433,310 100 $ 22,064,988 $ 22,064,988 41,441 - 605 100 663,271 663,271 - ( 3,825 ) 22,701 100 334,233 334,233 - ( 40,438 ) 16,000 100 366,689 366,689 - ( 148,533 ) 78,719 100 1,290,704 1,290,704 122,925 - 163,427 100 1,717,547 1,717,547 $ 1,416,787 ($ 194,713) $ 26,437,432 $ 26,437,432
	Number of Shares 433,310 605 22,701 16,000 78,719 163,427		Number of Shares - - - - - -		Number of Shares - - - - - -
						( ( ( (		( ( (				$ 22,064,988 663,271 334,233 366,689 1,290,704 1,717,547 $ 26,437,432

Unit: Shares in thousands, amounts in thousands of New Taiwan Dollars, unless otherwise stated

Note 1: Except for CHL and Glory Ace with a par value of US$1 per share and Malaysia with a par value of MYR 1 per share, the par value of all other shares is NT$10. Note 2: Decrease during the year is cash dividend received.

• 86 -

UPC Technology Corporation Statement of Accounts Payable

As of December 31, 2024

Statement 6		In Thousands of New Taiwan Dollars
	Supplier code	Amount
L		$ 312,391
A5		38,993
Others (Note)		69,209
Total		$ 420,593

Note: The balance of each customer does not exceed 5% of the balance of this account.

• 87 -

UPC Technology Corporation

Statement of Sales Revenue

January 1, 2024 to December 31, 2024

Statement 7 Item Sales Plasticizers Anhydride Others Total sales revenue Less: Sales returns and allowances Net sales revenue	In Thousands of New Taiwan Dollars Quantity (metric tons) Amount 71,059 $ 3,347,644 6,783 247,868 19,504 969,937 4,565,449 ( 7,720) $ 4,557,729

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UPC Technology Corporation

Statement of Cost of Goods Sold

January 1, 2024 to December 31, 2024

Statement 8 In Thousands of New Taiwan Dollars

Item Raw materials Beginning raw materials (including in-transit inventory) Raw material purchases in current year Raw material sales Others Ending raw materials (including in-transit inventory) Direct labor Manufacturing overhead Manufacturing cost Beginning work-in-progress and semi-finished goods Ending work-in-progress and semi-finished goods Cost of finished goods Beginning finished goods Purchased finished goods Others Ending finished goods Unallocated fixed manufacturing overhead Loss on inventory Cost of raw material sales Scrap revenue Cost of goods sold

Amount

$ 712,181 2,941,534 ( 258,049 ) ( 151 ) ( 527,241) 2,868,274 69,188 360,958 3,298,420 63,541 ( 87,582) 3,274,379 480,266 813,214 ( 7,161 ) ( 460,309) 4,100,389 176,453 9,003 258,049 ( 660) $ 4,543,234

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UPC Technology Corporation Statement of Operating Expenses

January 1, 2024 to December 31, 2024

Statement 9 In Thousands of New Taiwan Dollars

Salary and wages (including bonuses and pensions) Labor and health insurance Director remuneration Export expenses (including export sea freight, port construction fees, and customs clearance miscellaneous expenses) Inland freight on sales Depreciation and amortization Professional service fees Others (Note 2) Total	Selling and marketing expenses $ 4,944 482 - 66,522 30,922 3,302 - 5,493 $ 111,665	General and administrative expenses $ 152,542 11,141 6,449 - - 18,488 14,750 45,069 $ 248,439		Total
				$ 157,486 11,623 6,449 66,522 30,922 21,790 14,750 50,562 $ 360,104

Note 1: The calculation basis of this statement is consistent with that for employee benefit expenses.

Note 2: Including gain on reversal of expected credit impairment of NT$26 thousand.

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