Stock Code: 2028

WEI CHIH STEEL INDUSTRIAL CO., LTD.

FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

AND INDEPENDENT AUDITORS' REPORT

Address : No.123, NanBu Village, Guantian District,

Tainan City, Taiwan (R.O.C.)

Tel : (06)579-0213

— 1 —

Contents

Item	Page
1. Cover	1
2. Contents	2
3. Independent Auditors’ Report	3
4. Balance Sheets	4
5. Statements of Comprehensive Income	5
6. Statements of Changes In Equity	6
7. Statements of Cash Flows	7
8. Notes to Financial Statements	8
1. General Information	8
2. The Authorization of The Financial Statements	8
3. Application of New and Amended Standards and Interpretations	8~11
4. Summary of Significant Accounting Policies	11~22
5. Critical Accounting Judgments and Major Sources of Estimation and Assumption Uncertainty	22~25
6. Description of Significant Accounts	25~52
7. Related Party Transactions	52~54
8. Pledged Assets	55
9. Significant Contingent Liabilities and Unrecognized Contract Commitments	55~56
10. Significant Disaster Losses	56
11. Significant Subsequent Events	56
12. Others	56~65
13. Supplementary Disclosures	65
A. Significant Transactions Information	65~67
B. Information on Investees	-
C. Information on Investment in Mainland China	-
14. Segment Information	68
9. Statement of Major Accounting Items	69~93

Crowe

國富浩華聯合會計師事務所

Crowe (TW) CPAs

80250 高雄市苓雅區四維三路

6號27樓之1

27F-1., No.6, Siwei 3rd Rd.,

Lingya Dist.,

Kaohsiung City 80250, Taiwan

Tel +886 7 3312133

Fax +886 7 3331710

www.crowe.tw

Independent Auditors’ Report

To the Board of Directors and Shareholders

Wei Chih Steel Industrial Co., Ltd.

Opinion

We have audited the accompanying balance sheets of Wei Chih steel Industrial Co., Ltd. (the “Company”) as of December 31, 2025 and 2024, and the statements of comprehensive income, changes in equity and cash flows for the years then ended, and the notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and its financial performance and its cash flows for the years then ended, in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) as endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and auditing standards of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Professional Ethics for Certified Public Accountant of the Republic of China (the “Code”) and we have fulfilled our other ethical responsibilities in accordance with the Code. 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 financial statements for the year ended December 31, 2025. These matters were addressed in the context of our audit of the financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

Key audit matters for the Company's financial statements for the year ended December 31, 2025 are stated as follows:

Crowe

Authenticity of sales revenue

Please refer to Note 4(17) to the Financial Statements for the relevant accounting policies on revenue recognition.

Description of key audit matter

Wei Chih steel Industrial Co., Ltd mainly engages in the manufacturing and processing of steel rebars, bar steels, wire rods, steel billets and other steel products. The net sales revenue for the year ended December 31, 2025 was $8,513,536 thousand, and the sales revenue from specific customers has changed significantly, comparing with the previous year. The authenticity of sales revenue from specific customers is therefore considered a key audit matter.

How the matter was addressed in our audit:

We have carried out the main audit procedures as follows:

Understand and test the internal controls that is relevant with the authenticity of sales revenue from customers.
Obtain detailed sales revenue data from the specific customers mentioned above, and select samples to review shipping documents. Verify whether the payer and the amount of payment match the sales targets and revenue amounts recognized to verify the authenticity of sales revenue.

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

Management is responsible for the preparation and fair presentation of the 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 financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the 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 Financial Statements

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

Crowe

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

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

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

—3-2—

Crowe

The engagement partners on the audit resulting in this independent auditors’ report are Kuo Ming Lee and Shu Man Tsai.

Crowe (TW) CPAs
Kaohsiung, Taiwan
Republic of China
March 12, 2026

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.

—3-3—

WEI CHIH STEEL INDUSTRIAL CO., LTD.

BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

Assets	Note	December 31, 2025		December 31, 2024
		Amount	%	Amount	%
CURRENT ASSETS
Cash and cash equivalents	6(1)	$ 90,495	1	$ 140,444	1
Notes receivable, net	6(3)	39,331	-	61,520	1
Accounts receivable, net	6(4)	834,799	10	530,572	5
Other receivables		2,373	-	8,605	-
Inventories	6(5)	2,694,118	33	4,296,828	44
Prepayments	6(6)	98,362	1	158,003	2
Other financial assets - current	8	5,073	-	39,527	-
Total current assets		3,764,551	45	5,235,499	53
NONCURRENT ASSETS
Financial assets at fair value through other comprehensive income or loss - noncurrent	6(7)	362,562	4	394,346	4
Property, plant and equipment	6(8)	4,145,069	51	4,226,820	43
Right-of-use assets	6(9)	28,545	-	33,583	-
Intangible assets	6(11)	1,324	-	177	-
Deferred income tax assets	6(29)	20,977	-	20,183	-
Refundable deposits		3,412	-	1,555	-
Total noncurrent assets		4,561,889	55	4,676,664	47
TOTAL ASSETS		$ 8,326,440	100	$ 9,912,163	100
Liabilities and Equity
CURRENT LIABILITIES
Short-term loans	6(12)	$ 429,678	6	$ 1,193,183	12
Short-term notes and bills payable	6(13)	99,939	1	549,035	6
Financial liabilities at fair value through profit or loss - current	6(2)	1,455	-	-	-
Contract liabilities - current	6(23)	306,908	4	378,720	4
Notes payables		93,447	1	142,530	1
Accounts payable		360,562	4	455,080	5
Accounts payable - related parties	7	17,617	-	30,681	-
Other payables	6(14)	296,008	4	402,735	4
Current tax liabilities		900	-	15,371	-
Provisions - current	6(15)	22,239	-	14,905	-
Lease liabilities - current	6(9)	5,179	-	5,034	-
Deferred Revenue		500	-	-	-
Current portion of long-term loans	6(16)	270,963	3	191,979	2
Total current liabilities		1,905,395	23	3,379,253	34

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		December 31, 2025		December 31, 2024
Liabilities and Equity	Note	Amount	%	Amount	%
NONCURRENT LIABILITIES
Long-term loans	6(16)	$1,637,991	20	$1,802,332	19
Deferred income tax liabilities	6(29)	-	-	82	-
Lease liabilities - noncurrent	6(9)	26,201	-	31,380	-
Non-current deferred revenue	6(17)	4,000	-
Net defined benefit liabilities - noncurrent	6(18)	23,630	-	31,041	-
Guarantee deposits		1,020	-	1,020	-
Total noncurrent liabilities		1,692,842	20	1,865,855	19
Total Liabilities		3,598,237	43	5,245,108	53
EQUITY
Share capital	6(19)
Ordinary shares		$3,257,148	39	$3,257,148	32
Retained earnings	6(20)
Legal reserve		267,097	3	259,247	3
Unappropriated earnings		903,026	11	817,944	8
Other equity	6(21)	341,643	4	373,427	4
Treasury stock	6(22)	(40,711)	-	(40,711)	-
Total equity		4,728,203	57	4,667,055	47
TOTAL LIABILITIES AND EQUITY		$8,326,440	100	$9,912,163	100

WEI CHIH STEEL INDUSTRIAL CO., LTD.

STATEMENTS OF COMPREHENSIVE INCOME

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

Item	Note	Year Ended December 31
		2025		2024
		Amount	%	Amount	%
OPERATING REVENUES	6(23)	$ 8,513,536	100	$ 10,196,132	100
OPERATING COSTS	6(5)	(8,179,278)	(97)	(9,639,304)	(94)
GROSS PROFIT (LOSS)		334,258	3	556,828	6
OPERATING EXPENSES
Sales and marketing		(91,707)	(1)	(62,857)	(1)
General and administrative		(102,422)	(1)	(120,140)	(1)
Expected credit gain (loss)	6(4)	(1,418)	-	3,139	-
Total operating expenses		(195,547)	(2)	(179,858)	(2)
INCOME FROM OPERATIONS		138,711	1	376,970	4
NON-OPERATING INCOME AND EXPENSES
Interest income	6(25)	1,507	-	1,586	-
Other income	6(26)	29,807	-	32,407	-
Other gains and losses	6(27)	(11,053)	-	10,829	-
Finance costs	6(28)	(58,637)	-	(58,424)	-
Total non-operating income and expenses		(38,376)	-	(13,602)	-
INCOME BEFORE INCOME TAX		100,335	1	363,368	4
INCOME TAX BENEFIT (EXPENSE)	6(29)	(10,888)		(47,165)
NET INCOME		89,447	1	316,203	4
OTHER COMPREHENSIVE INCOME (LOSS)	6(30)
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit obligation		3,485	-	7,206	-
Unrealised gains (loss) on investments in equity instruments measured at fair value through other comprehensive income		(31,784)	-	81,322	1
Total other comprehensive income (loss), net of income tax		(28,299)	-	88,528	-
TOTAL COMPREHENSIVE INCOME		$ 61,148	1	$ 404,731	5
EARNINGS PER SHARE
Basic	6(31)	$ 0.28		$ 0.98
Diluted	6(31)	$ 0.28		$ 0.97

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

WEI CHIH STEEL INDUSTRIAL CO., LTD.
STATEMENTS OF CHANGES IN EQUITY
(In Thousands of New Taiwan Dollars)

	Ordinary Shares	Retained Earnings		Others		Total Equity
		Legal Reserve	Unappropriated Earnings	Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Comprehensive income	Treasury stock
BALANCE AT JANUARY 1, 2024	$ 3,257,148	$ 225,131	$ 723,065	$ 292,105	$ (37,967)	$ 4,459,482
Appropriations of earnings:
Legal reserve	-	34,116	(34,116)	-	-	-
Cash dividends	-	-	(194,414)	-	-	(194,414)
Net income in 2024	-	-	316,203	-	-	316,203
Other comprehensive income (loss) in 2024, net of income tax	-	-	7,206	81,322	-	88,528
Total comprehensive income in 2024	-	-	323,409	81,322	-	404,731
Treasury stock acquired	-	-	-	-	(2,744)	(2,744)
BALANCE AT DECEMBER 31, 2024	3,257,148	259,247	817,944	373,427	(40,711)	4,667,055
Appropriations of earnings:
Legal reserve	-	7,850	(7,850)	-	-	-
Net income in 2025	-	-	89,447	-	-	89,447
Other comprehensive income (loss) in 2025, net of income tax	-	-	3,485	(31,784)	-	(28,299)
Total comprehensive income in 2025	-	-	92,932	(31,784)	-	61,148
Treasury stock acquired	-	-	-	-	-	-
BALANCE AT DECEMBER 31, 2025	$ 3,257,148	$ 267,097	$ 903,026	$ 341,643	$ (40,711)	$ 4,728,203

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

WEI CHIH STEEL INDUSTRIAL CO., LTD.

STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

Item	Year Ended December 31
	2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax	$ 100,335	$ 363,368
Adjustments :
Adjustments to reconcile profit (loss)
Depreciation	381,314	356,262
Amortization	406	402
Expected credit loss (gain)	1,418	(3,139)
Net loss (gain) on financial assets and liabilities at fair value through profit or loss	1,455	-
Interest expense	58,637	58,424
Interest income	(1,507)	(1,586)
Dividend income	(20,810)	(14,899)
Loss (gain) on disposal and retirement of property, plant and equipment	(30)	-
Transfer of property, plant and equipment to expenses	-	15,287
Other items	(500)	-
Total adjustments to reconcile profit (loss)	420,383	410,751
Net changes in operating assets and liabilities
Net changes in operating assets
Decrease (increase) in notes receivable	22,300	5,611
Decrease (increase) in accounts receivable	(305,756)	622,143
Decrease (increase) in other receivables	6,237	(7,002)
Decrease (increase) in inventories	1,661,271	(1,201,242)
Decrease (increase) in prepayments	59,641	67,047
Total changes in operating assets	1,443,693	(513,443)
Net changes in operating liabilities
Increase (decrease) in contract liabilities	(71,812)	348,721
Increase (decrease) in notes payable	(49,083)	(174,779)
Increase (decrease) in accounts payable	(107,582)	(115,070)
Increase (decrease) in other payables	(31,102)	(18,355)
Increase (decrease) in provisions	7,334	926
Increase (decrease) in net defined benefit liabilities	(3,926)	(4,320)
Total changes in operating liabilities	(256,171)	37,123
Total net changes in operating assets and liabilities	1,187,522	(476,320)
Total adjustments	1,607,905	(65,569)

	Year Ended December 31
Item	2025	2024
Cash generated from (used in) operations	$1,708,240	$297,799
Interest received	1,502	1,523
Diviends received	20,810	14,899
Interest paid	(56,133)	(56,049)
Income tax returned (paid)	(26,235)	(84,436)
Net cash generated from (used in) operating activities	1,648,184	173,736
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property, plant and equipment	(330,834)	(977,627)
Proceeds from disposal of property, plant and equipment	30	-
Increase in refundable deposits	(1,857)	(528)
Decrease in refundable deposits	(1,553)	-
Acquisition of intangible assets	-	-
Increase in other financial assets	-	(5,452)
Decrease in other financial assets	34,454	-
Net cash generated from (used in) investing activities	(299,760)	(983,607)
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in short-term loans	-	600,034
Decrease in short-term loans	(763,505)	-
Increase in short-term notes and bills payable	-	120,000
Decrease in short-term notes and bills payable	(450,000)	-
Increase in long-term loans	105,104	604,560
Decrease in long-term loans	(192,731)	(166,487)
Repayments of principal of lease liabilities	(5,034)	(4,894)
Increase in long-term deferred revenue	5,000	-
Cash dividends paid	(97,207)	(259,432)
Treasury stock acquired	-	(2,744)
Net cash generated from (used in) financing activities	(1,398,373)	891,037
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(49,949)	81,166
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD	140,444	59,278
CASH AND CASH EQUIVALENTS - END OF PERIOD	$90,495	$140,444

WEI CHIH STEEL INDUSTRIAL CO., LTD.
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars, Except Stated Otherwise)

1. GENERAL INFORMATION

(1) The Company was incorporated in October 1982 under the former name of Shih Wei Steel Co., Ltd. The Company changed its name as Wei Chih Steel Industrial Co., Ltd. in July 1989, and consolidated with Wei Hung Construction Co., Ltd. on May 31, 1992. Main business items of the Company are processing, manufacturing, trading and importing / exporting of steel rebars, bar steels, wire rods, steel billets and other steel products. The Company also rents and sales of public housing units and commercial building constructed by construction engineering firms entrusted by the Company. However, such businesses were cancelled in 2010. The Company does not have the ultimate parent company.

(2) The financial statements are presented in the Company's functional currency, New Taiwan Dollars.

2. THE AUTHORIZATION OF THE FINANCIAL STATEMENTS

The accompanying financial statements were approved and authorized for issue by the Board of Directors on March 12, 2026.

3. APPLICATION OF NEW AND AMENDED STANDARDS AND INTERPRETATIONS

3-1 Effect of adoption of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the "IFRSs") endorsed and issued into effect by the Financial Supervisory Commission (FSC):

The adoption of the amendments to the IFRSs endorsed and issued into effect by the FSC did not have any material impact on the Company's accounting policies.

New standards, interpretations and amendments endorsed by the FSC and effective from 2025 are as follows:

New, Amended or Revised Standards and Interpretations (the “New IFRSs”)	Effective Date Announced by IASB
Amendments to IAS 21 "Lack of Exchangeability"	January 1, 2025

A. Amendments to IAS 21 "Lack of Exchangeability"

This amendment defines convertibility and provides guidance on how companies can determine the spot exchange rate on the measurement date when a currency lacks convertibility. The amendment also requires companies to provide more useful information in their financial statements when one currency is not convertible into another.

The Company has evaluated the aforementioned standards and interpretations, and there's no significant effect on the Company's financial position and performance.

3-2 Effect of new issuances or amendments to IFRSs as endorsed by the FSC but not yet adopted

New, Amended or Revised Standards and Interpretations (the “New IFRSs”)	Effective Date Announced by IASB
Amendments to IFRS 9 “Financial Instruments” and IFRS 7 “Financial Instruments: Disclosures” - Amendments to the Classification and Measurement of Financial Instruments	January 1, 2026
Amendments to IFRS 9 and IFRS 7 “Contracts involving natural electricity”	January 1, 2026
Annual Improvements to IFRS Accounting Standards – Volume 11	January 1, 2026

A. The Amendments to IFRS 9 “Financial Instruments” and IFRS 7 “Financial Instruments: Disclosures” - Amendments to the Classification and Measurement of Financial Instruments

(A) Clarify and add to the application guidance on how to assess whether contractual cash flows of a financial asset are solely payments of principal and interest (SPPI) on the principal amount outstanding. The amendments further address the assessment on the contractual cash flow that could change subject to a contingent event, for example, interests linked to an ESG metric, as well as the treatment of non-recourse assets and contractually linked instruments.

(B) Require additional disclosures for financial instruments with contractual terms that that could change contractual cash flows of a contingent event (including those that are ESG-linked). Disclosures include a qualitative description of the nature of the contingent event, quantitative information about the possible changes to contractual cash flows as well as the gross carrying amount of financial assets and the amortized cost of financial liabilities subject to those contractual terms.

(C) Clarify that a financial liability is derecognized on the settlement date and describe the accounting treatment for a financial liability (or part of it) that will be settled in cash using an electronic payment system to be discharged before the settlement date if, and only if, the entity has initiated a payment instruction that has resulted in:

a. The entity having no practical ability to withdraw, stop or cancel the payment instruction

b. The entity having no practical ability to access the cash to be used for settlement as a result of the payment instruction

c. The settlement risk associated with the electronic payment system being insignificant

(D) Require additional disclosures for equity instruments classified at fair value through other comprehensive income (FVTOCI). It is required to disclose the fair value gain or loss presented in OCI during the reporting period, showing separately the fair value gain or loss that relates to investments derecognized in the reporting period and the fair value gain or loss that relates to investments held at the end of the reporting period. If an entity derecognizes investments in equity instruments measured at FVTOCI during the reporting period, it is now required, under the amendments, to disclose any transfers of the cumulative gain or loss within equity during the reporting period related to the investments derecognized during that reporting period. Also, it is no longer required to disclose the fair value of each equity instrument designated at FVTOCI, this information can be provided by class of instruments

The Company has evaluated the aforementioned standards and interpretations, and there's no significant effect on the Company's financial position and performance.

3-3 Effect of IFRSs issued by IASB but not yet endorsed and issued into effect by FSC :

New IFRSs	Effective Date Announced by IASB
Amendments to IFRS 10 and IAS 28 "Sale or Contribution of Assets between an Investor and its Associate or Joint Venture"	To be determined by IASB
IFRS 18 "Presentation and Disclosure in Financial Statements"	January 1, 2027(Note A)
IFRS 19 “Disclosure Initiative - Subsidiaries without Public Accountability: Disclosures”	January 1, 2027
IAS 21 "Translation to a Hyperinflationary Presentation Currency"	January 1, 2027

Note A: On September 25, 2025, the Financial Supervisory Commission (FSC) announced in its press release that public companies shall apply IFRS 18 starting from fiscal year 2028. In addition, entities that wish to early adopt IFRS 18 may elect to do so after the FSC has endorsed IFRS 18.

Amendments to IFRS 10 and IAS 28 "Sale or Contribution of Assets between an Investor and its Associate or Joint Venture"

The amendment resolve the difference between IFRS10 and IAS28, Transactions in which investors sell (invest) assets to their affiliated companies or joint ventures. Recognition of the gain or loss from the sale or contribution of assets depends on whether the assets constitute a business.

(A) The gain or loss resulting from the sale or contribution of assets that constitute a business, between an investor and its associate or joint venture is recognized in full;

(B) The partial gain or loss recognition for transactions between an investor and its associate or joint venture only apply to the gain or loss resulting from the sale or contribution of assets that do not constitute a business.

IFRS 18 “Presentation and Disclosure in Financial Statements”

IFRS 18 will replace IAS1 and update the structure of the consolidated income statement. Added new disclosures on management performance measurement, and strengthened the aggregation and segmentation principles applied to the main financial statements and notes.

IFRS 19 “Disclosure Initiative - Subsidiaries without Public Accountability: Disclosures”

IFRS 19 permits eligible subsidiaries to apply reduced disclosure requirements instead of the disclosure requirements in other IFRS Accounting Standards.

IAS 21 "Translation to a Hyperinflationary Presentation Currency"

This amendment introduces a requirement that, when translating from a functional currency of a non-hyperinflationary economy into a presentation currency of a hyperinflationary economy, all amounts, including comparative amounts, shall be translated using the closing rate at the end of the most recent reporting period. The amendment also provides an exception whereby, if both the functional currency and the presentation currency are currencies of hyperinflationary economies, and the foreign operation is an entity with a functional currency of a non-hyperinflationary economy, comparative amounts are not required to be retranslated. In addition, the amendment requires disclosures that include the translation method applied and summarized financial information of the foreign operations to which the translation method is applied.

As of the date the accompany consolidated financial statements are authorized for issue, the Company is still evaluating the impact on its financial position and financial performance as a result of the initial adoption of the aforementioned standards or interpretations. The related impact will be disclosed when the Company completes the evaluation.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies adopted in the preparation of these financial statements are set out below. These policies have been applied consistently across all reporting periods unless otherwise stated.

4.1 Statement of Compliance

The accompanying financial statements have been prepared in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the IFRSs endorsed by the FSC with the effective dates.

4.2 Basis of preparation

(1) Except for the following items, the accompanying financial statements have been

prepared on a historical cost basis:

A. Financial assets and financial liabilities (including derivative instruments) measured at fair value through profit or loss.
B. Financial assets and liabilities measured at fair value through other comprehensive income.
C. Defined benefit liabilities recognized based on the net amount of pension fund assets less the present value of defined benefit obligation.

(2) The preparation of the financial statements in compliance with IFRSs requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Group’s accounting policies. Areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates have a significant impact on the financial statements are disclosed in Note 5.

4.3 Foreign Currencies

(1) Foreign currency transactions and balance

A. Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured.
B. Monetary assets and liabilities denominated in foreign currencies at the period end are retranslated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognized in profit or loss.
C. Non-monetary items measured at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Exchange differences arising on the retranslation of non-monetary items are included in profit or loss for the year except for exchange differences arising on the retranslation of non-monetary items in respect of which gains and losses are recognized directly in other comprehensive income, in which case, the exchange differences are also recognized directly in other comprehensive income. Non-monetary items that are measured in terms of historical cost in foreign currencies are not retranslated.

4.4 Classification of current and non-current items

(1) Assets that meet one of the following criteria are classified as current assets; otherwise, they are classified as non-current assets:

A. Assets arising from operating activities that are expected to be realized, or are intended to be sold or consumed within the normal operating cycle;
B. Assets held mainly for trading purposes;
C. Assets that are expected to be realized within twelve months from the balance sheet date;
D. Cash and cash equivalents, excluding restricted cash and cash equivalents and those intended to be exchanged or used to settle liabilities more than twelve months after the balance sheet date.

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(2) Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities:

A. Liabilities that are expected to be settled within the normal operating cycle;
B. Liabilities held mainly for trading purposes;
C. Liabilities that are to be paid off within twelve months from the balance sheet date (Even if a long-term refinancing or re-arrangement of payment agreements is completed after the balance sheet date and before the issuance of the financial report is approved, it is classified as current liabilities).
D. Liabilities for which there is no substantive right at the balance sheet date to defer settlement for at least twelve months after the balance sheet date. The classification of a liability is not affected if its terms allow the counterparty to settle it by issuing equity instruments at their discretion.

4.5 Cash and cash equivalents

Cash and cash equivalents comprises cash on hand, demand deposits and short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value (including the original maturity of the time deposits within three months.)

4.6 Financial instruments

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

Financial assets and financial liabilities are recognized initially at fair value plus or minus, in the case of investments not at fair value through profit or loss, directly attributable transaction costs. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.

(1) Financial assets

A. Measurement categories

All regular way purchases or sales of financial assets are recognized and derecognized using trade date accounting.

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

a. Financial assets at fair value through profit or loss

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

Financial assets at FVTPL are initially and subsequently measured at fair value, with any dividends, interest earned recognized as other income, and gains or losses arising from remeasurement recognized in other gains or losses. Fair value is determined in the manner described in Note 12(3).

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b. Financial assets at amortized cost

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

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

Financial assets at amortized cost, which equals to gross carrying amount determined by the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

Expect for the following two cases, interest income is calculated by applying the effective interest rate to the gross carrying amount of a financial asset.

i. Purchased or originated credit-impaired financial assets: for those financial assets, the Company applies the credit-adjusted effective interest rate to the amortized cost of the financial asset from initial recognition.
ii. Financial assets that are not purchased or originated credit-impaired financial assets but subsequently have become credit-impaired financial assets: for those financial assets, the Company shall apply the effective interest rate to the amortized cost of the financial asset in subsequent reporting periods.

c. Investments in equity instruments at FVTOCI

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

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

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

B. Impairment of financial assets

a. At the end of each reporting period, a loss allowance for expected credit loss is recognized for financial assets at amortized cost (including accounts receivable), investments in debt instruments that are measured at FVTOCI, lease receivable and contract assets.
b. The Company always recognize lifetime Expected Credit Loss (i.e. ECL) for accounts receivables. For other financial assets, the Company recognize lifetime ECL when there has been a significant increase in credit risk since initial

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recognition. If, on the other hand, the credit risk on the financial instrument has not increased significantly since initial recognition, the Company measures the loss allowance for that financial instrument at an amount equaling to 12-month ECL.

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

d. The Company recognizes an impairment loss in profit or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account, except for investments in debt instruments that are measured at FVTOCI, for which the loss allowance is recognized in other comprehensive income and does not reduce the carrying amount of the financial asset.

C. Derecognition of financial assets

The Company derecognizes a financial asset when one of the following conditions is meet:

a. The contractual rights to receive cash flows from the financial asset expire.

b. The contractual rights to receive cash flows from the financial asset have been transferred and the Company has transferred substantially all risks and rewards of ownership of the financial asset.

c. The Company neither retains nor transfers substantially all risks and rewards of ownership of the financial asset; however, it has not retained control of the financial asset.

On derecognition of financial assets at amortized cost in its entirety, the difference between the financial asset’s carrying amount and the sum of the consideration received is recognized in profit or loss. On derecognition of debt instrument measured at fair value through other comprehensive income, the difference between the financial asset’s carrying amount and the sum of the consideration received and the cumulative gain or loss that had been recognized in other comprehensive income and accumulated in equity is recognized in profit or loss. On derecognition of equity instruments at fair value through other comprehensive income in its entirety, the cumulative profit and loss will be transferred directly to retained earning without reclassified into profit and loss.

(2) Equity instruments

The Company classifies the instrument issued as a financial liability or an equity instrument in accordance with the substance of the contractual arrangement and the definitions of a financial liability, and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. The transaction costs of an equity transaction are accounted for as a

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deduction from equity to the extent they are incremental costs directly attributable to the equity transaction that otherwise would have been avoided.

(3) Financial liabilities

A. Subsequent measurement

Financial liabilities other than those held for trading purposes and designated as at fair value through profit or loss are subsequently measured at amortized cost at the end of each reporting periods.

B. Derecognition of financial liabilities

The Company derecognizes financial liabilities when, and only when, the Company's obligations are discharged, cancelled or they expire. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.

(4) Modification of Financial Instruments

When the contractual cash flows of a financial instrument are renegotiated or modified and the renegotiation or modification does not result in the derecognition of that financial instrument, the Company recalculates the gross carrying amount of the financial asset or the amortized cost of the financial liabilities using the original effective interest rate and recognises a modification gain or loss in profit or loss. Any costs or fees incurred adjust the carrying amount of the modified financial instrument and are amortised over the remaining term of the modified financial instrument. If the renegotiation or modification results in that the derecognition of that financial instrument is required, then the financial instrument is derecognized accordingly.

4.7 Inventories

Inventories are stated at the lower of cost and net realizable value, accounted for on a perpetual basis. Cost is determined using the weighted-average method. The cost of finished goods and work in process comprises raw materials, direct labor, other direct costs and related production overheads (allocated based on normal operating capacity). It excludes borrowing costs. The item by item approach is used in applying the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and costs necessary to make the sale.

4.8 Property, Plant, and Equipment

(1) Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalized. For property, plant and equipment under construction, sample produced from testing whether the asset is functioning properly before its intended use are measured at lower of the costs or net realizable value. Proceeds from selling such an item and the cost of the item are recognized in profit or loss.

(2) Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and

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maintenance are charged to profit or loss during the financial period in which they are incurred.

(3) Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. The assets' residual values, useful lives and depreciation methods are, reviewed, and adjusted if appropriate, at each financial year-end. If expectations for the assets' residual values and useful lives differ from previous estimates or the patterns of consumption of the assets' future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, "Accounting Policies, Changes in Accounting Estimates and Errors", from the date of the change. Service lives estimated as follows:

Building and structure
Main buildings including plant and office building	21-56 years
Equipment of electromechanical dynamic force	9-46 years
Others	2-16 years
Machinery	2-36 years
Other equipment	2-36 years

(4) An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the assets. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss.

4.9 Leases

The Company assesses whether the contract is (or includes) a lease at the date of the contract. For a contract that contains a lease component and non-lease components, the Company allocates the consideration in the contract to each component on the basis of the relative stand-alone price and accounts for each component separately.

(1) The Company as lessee

Except for payments for low-value asset and short-term leases which will be recognized as expenses on a straight-line basis, the Company will recognize right-of-use assets and lease liabilities for all leases at the inception of lease.

Right-of-use asset

The right-of-use asset is initially measured at cost (including the initial measurement amount of the lease liability, the payments less incentives, initial direct costs and the estimated recover cost), the subsequent measurement is based on the cost less accumulated depreciation and accumulated impairment loss, and adjusting the amount of re-measures of lease liabilities.

The right-of-use asset recognized depreciation is using the straight-line basis from the date of the lease until the expiration of the useful life or the expiration of the lease term, the depreciation is provided that the title of the underlying asset will be acquired at the

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end of the lease period or, if the cost of the right-of-use asset reflects the execution of the purchase option.

Lease liability

The lease liability is initially measured by the present value of the lease payment (including fixed payment, substantive fixed payment, change in lease payment depending on the index or rate, etc.). If the implied interest rate on the lease is easy to determine, the lease payment is discounted using that interest rate. If the interest rate is not easy to determine, the lessee's increase borrowing rate is used.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. If the lease period, the evaluation of the purchase choice, the amount of expected to be paid under the residual value guarantee or the change in the index or rate used to determine the lease payment result in a change in the future lease payment, the Company will measure the lease liability and adjust the right-of-use assets relatively. If the carrying amount has been reduced to zero, the remaining amount will recognize in the profit and loss. Lease liabilities are presented as a separate line item in the balance sheets.

(2) The Company as lessor

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

Under finance leases, the lease payments comprise fixed payments, in-substance fixed payments and variable lease payments that depend on an index or a rate. The net investment in a lease is measured at the present value of the sum of the lease payments receivable and any unguaranteed residual value plus initial direct costs and is presented as a finance lease receivable. Finance lease income is allocated over the lease term so as to reflect a constant, periodic rate of return on the Company's net investment in the leases.

Under operating leases, lease payments, less any lease incentives payable, are recognized as lease income on a straight-line basis over the lease terms. Initial direct costs incurred in obtaining operating leases are added to the carrying amounts of the underlying assets and recognized those costs as an expense over the lease term on the same basis as the lease income.

4.10 Investment properties

Investment properties are properties held to earn rentals and/or for capital appreciation (including property under construction for such purposes), also include land held for a currently undetermined future use.

Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are measured at cost less accumulated depreciation and accumulated impairment loss. Depreciation is recognized using the straight-line method.

Investment properties in the course of construction are stated at cost less accumulated

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impairment loss. Cost includes professional fees and borrowing costs eligible for capitalization. Depreciation of these assets commences when the assets are ready for their intended use.

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

4.11 Intangible assets

Separately acquired intangible assets with finite useful lives are initially measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment loss. Amortization is recognized on a straight-line basis over the following estimated lives: computer software - 4 to 5 years. The estimated useful life and amortization method for an intangible asset are reviewed at each financial year-end. Any changes in estimates is accounted for on a prospective basis.

An intangible asset is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising from the disposal of the assets is determined as the difference between the disposal proceeds and the carrying amount of the asset and is recognized in profit or loss.

4.12 Impairment of non-financial assets

The Company assesses at the end of reporting period the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognized for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and its value in use. When the indication of impairment loss recognized in prior years for an asset other than goodwill no longer exists, the impairment loss is reversed to the extent of the loss previously recognized in profit or loss.

4.13 Provisions

Provisions are recognized when the Company has a present legal or constructive obligation as a result of past events, and it is probable that an outflow of economic resources will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation on the balance sheet date. The discount rate (or rates) shall be a pretax rate (or rates) that reflect(s) current market assessments of the time value of money and the risks specific to the liability. Where discounting is used, the carrying amount of a provision increases in each period to reflect the passage of time. This increase is recognized as interest expense. Provisions are not recognized for future operating losses.

4.14 Employee benefits

(1) Short-term employee benefits

Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period and should be recognized as expenses in that period when the employees render service.

(2) Pensions

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A. Defined contribution plans

For defined contribution plans, the contributions are recognized as pension expenses when they are due on an accrual basis. Prepaid contributions are recognized as an asset to the extent of a cash refund from the plan or a reduction in future contributions to the plan.

B. Defined benefit plans

(A) Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Company in the current period or prior period. The liability recognized in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The discount rate used is determined by using the market yields (at the end of the reporting period) on government bonds denominated in the currency in which the benefits are to be paid.

(B) Remeasurements of defined benefit plans are recognized in other comprehensive income as incurred and are recorded as retained earnings.

(3) Employees' compensation and directors' and supervisors' remuneration

Employees' compensation and directors' and supervisors' remuneration are recognized as expenses and liabilities, provided that such recognition is required under legal or constructive obligations and those amounts can be reliably estimated. Any difference between the amount accrued and the amount actually distributed is accounted for a change in accounting estimate.

(4) Termination benefits

Termination benefits are employee benefits provided in exchange for the termination of an employee's employment as a result of either the Company's decision to terminate an employee's employment before the normal retirement date, or an employee's decision to accept an offer of benefits in exchange for the termination of employment. The Company recognizes expense when it can no longer withdraw an offer of termination benefits or when it recognizes related restructuring costs, whichever is earlier. Benefits expected to be due more than 12 months after the balance sheet date are discounted to their present value.

4.15 Share capital

Ordinary shares are classified as equity. The classification of preferred stocks is based on the special rights entitled to preference shares based on the substance of the contract and the definition of financial liabilities and equity instruments. If preferred stocks meet the definition of a financial liability, they are classified as liabilities; otherwise, they are classified as equity. Incremental costs directly attributable to the issue of new shares or stock options are recognized in equity as a deduction from the proceeds.

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4.16 Income tax

(1) The tax expense for the period comprises current and deferred tax. Tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or items recognized directly in equity, in which cases the tax is recognized in other comprehensive income or equity, respectively.

(2) The current income tax charge is calculated based on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company operates and generates taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax calculated in accordance with Income Tax Act of the Republic of China is levied on the unappropriated retained earnings and is recorded as income tax expense in the subsequent year when the stockholders approve to distribute retain earnings.

(3) Deferred income tax is recognized, using the balance sheet method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. However, the deferred income tax is not accounted for if it arises from initial recognition of goodwill or of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss, and it does not give rise to equal deductible and taxable temporary differences at the time of transaction. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled.

(4) Deferred income tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences, unused tax losses, and unused tax credits can be utilized. At each balance sheet date, unrecognized and recognized deferred income tax assets are reassessed.

(5) Current income tax assets and liabilities are offset and the net amount is reported in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realized the asset and settle the liability simultaneously. Deferred income tax assets and liabilities are offset on the balance sheet when the entity has the legally enforceable right to offset current tax assets against current tax liabilities and they are levied by the same taxation authority on either the same entity or different entities that intend to settle on a net basis or realized the asset and settle the liability simultaneously.

(6) A deferred tax asset shall be recognized for the carryforward of unused tax credits resulting from acquisitions of equipment or technology, research and development expenditures, employee training, and equity investments to the extent that it is possible that future taxable profit will be available against which the unused tax credits can be utilized.

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4.17 Revenue Recognition

The Company applies the following steps for revenue recognition:

(1) Identifying the contract;
(2) Identifying performance obligations;
(3) Determining the transaction price;
(4) Allocating the transaction price to performance obligations; and
(5) Recognizing revenue when (or as) a performance obligations is satisfied.

For contracts where the period between the date on which the Company transfers a promised good or service to a customer and the date on which the customer pays for that good or service is within one year, the Company does not adjust the promised amount of consideration for the effect of a significant financing component.

Revenue from the sale of goods comes from sales of steel rebars, wire rods, bar steels, steel billets and other steel products. Sales revenues are recognized while the control of goods is transferred to the customers since the customers have full discretion over the manner of distribution and price to sell the goods, has the primary responsibility for sales to future customers and bears the risks of obsolescence. The Company recognizes revenues and accounts receivable at the point and presents it in net term after deducting sales return, quantity discount and sales allowance.

The Company does not recognize sales revenue on materials delivered to subcontractors because such delivery does not involve a transfer of control.

4.18 Borrowing Costs

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

To the extent that an entity borrows funds specifically for the purpose of obtaining a qualifying asset, the entity shall determine the amount of borrowing costs eligible for capitalisation as the actual borrowing costs incurred on that borrowing during the period less any investment income on the temporary investment of those borrowings.

Except for those qualifying capitalization, all other borrowing costs are recognized as an expense in profit or loss as incurred.

5. CRITICAL ACCOUNTING JUDGEMENTS AND MAJOR SOURCES OF ESTIMATION AND ASSUMPTION UNCERTAINTY

In the preparation of the Company’s financial statements, the critical accounting judgments the Company has made and the major sources of estimation and assumption uncertainty are described as follows:

5.1 Critical judgements in applying accounting policies

(1) Business model assessment for financial assets

The Company determines the business model at a level that reflects how groups of financial assets are managed together to achieve a particular business objective. This assessment involves judgment and consideration of all relevant evidence, such as how

the performance of the assets is evaluated, the risks that affect the performance of the assets, and how the managers of the assets are compensated. The Company constantly assesses the adequacy of its business model and monitors financial assets measured at amortized cost and debt investments measured at fair value through other comprehensive income. When these assets are derecognized prior to their maturity, the Company reviews the reasons for their disposal and whether the reasons are consistent with the objective of the business for which the assets were held. If the objective of the business for an asset is changed, the classification of the asset is prospectively changed from the reclassification date.

(2) Revenue recognition

The Company assesses if it controls the specified good or service before that good or service is transferred to a customer to determine whether it is acting as a principal or as an agent in the transaction in accordance with IFRS 15. Where the Company acts as an agent, revenue is recognized on a net basis.

When another party is involved in providing goods or services to a customer, the Company is a principal if the group obtains control of any one of the following:

A. a good or another asset from the other party that it then transfers to the customer.
B. a right to a service to be performed by the other party, which gives the Company the ability to direct that party to provide the service to the customer on the Company's behalf.
C. a good or service from the other party that it then combines with other goods or services in providing the specified good or service to the customer.

Indicators that the Company controls the specified good or service before it is transferred to the customer include, but are not limited to, the following:

A. the entity is primarily responsible for fulfilling the promise to provide the specified good or service.
B. the entity has inventory risk before or after the specified good or service has been transferred to a customer.
C. the entity has discretion in establishing the price for the specified good or service.

(3) Lease terms

In determining the lease term, the Company considers all the facts and circumstances that create an economic incentive to exercise or not to exercise the option, including any expected changes in facts and circumstances from the commencement date until the exercise date of the option. Main factors considered include the contractual terms and conditions for the periods covered by the option, significant leasehold improvements undertaken (or expected to be undertaken) over the contract term, the importance of the underlying asset to the lessee's operations, etc. The lease term is reassessed if a significant change in circumstances that are within control of the Company occurs.

5.2 Critical accounting estimates and assumptions

(1) Revenue Recognition

The Company recognizes a refund for estimated future returns and other allowance in

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the same period the related revenue is recorded. The Company estimates sales returns and allowance based on historical experience and other known factors. The Company reassesses the reasonableness of the estimates periodically.

(2) Estimated impairment of financial assets

The provision for impairment of trade receivables is based on assumptions on risk of default and expected loss rates. The Company makes these assumptions and selects inputs for impairment calculation based on the Company's historical experience and existing market conditions, as well as forward looking information. Where the actual future cash inflows are less than expected, a material impairment loss may arise. Important assumptions and input values used are referred to note 6(3).

(3) Fair value measurements and valuation processes

Where some of the Company's assets and liabilities measured at fair value have no quoted prices in active markets, the Company determines, based on relevant regulations and judgment, whether to engage third party qualified valuers and the appropriate valuation techniques for the fair value measurements.

Where Level 1 inputs are not available, the Company determines appropriate inputs by referring to the analyses of the financial position and the operation results of the investees, the most recent transaction prices, prices of the same equity instruments not quoted in active markets, quoted prices of similar instruments in active markets, and valuation multiples of comparable entities. If the actual changes of inputs in the future differ from expectation, the fair value might vary accordingly. The Company updates inputs periodically according to market conditions to monitor the appropriateness of the fair value measurement. Please refer to Note 12(3) for fair value valuation technique and input values.

(4) Impairment assessment of tangible and intangible assets

In the course of impairment assessments, the Company determines, based on how assets are utilised and relevant industrial characteristics, the useful lives of assets and the future cash flows of a specific group of the assets. Changes in economic circumstances or the Company's strategy might result in material impairment of assets in the future.

(5) Realizability of deferred tax assets

Deferred tax assets are recognized only to the extent that it is probable that future taxable profits will be available against which the deferred tax asset can be utilized. The Company's management assesses the realizability of deferred tax assets by making critical accounting judgments and significant estimates of expected future revenue growth rate, gross profit rate, the tax exemption period, available tax credits, and tax planning, etc. Changes in the global economic environment, industrial environment, and laws and regulations might result in material adjustments to deferred tax assets.

(6) Evaluation of inventories

As inventories are stated at the lower of cost and net realizable value, the Company needs to exercise judgments and estimates the net realizable value of inventory for obsolescence and unmarketable items on balance sheet date due to the rapid technology changes and writes down inventories to the net realizable value. Such an evaluation of

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inventories is mainly based on the demand for the products within a specified period in the future. Therefore, there might be material changes to the evaluation.

(7) Calculation of accrued pension obligations

When calculating the present value of defined pension obligations, the Company uses judgments and actuarial assumptions to determine related estimates, including discount rates and future salary increase rate. Changes in these assumptions may have a significantly impact on the carrying amount of defined pension obligations.

(8) Lessees' incremental borrowing rates

In determining a lessee's incremental borrowing rate used in discounting lease payments, a risk-free rate for the same currency and relevant duration is selected as a reference rate, and the lessee's credit spread adjustments and lease specific adjustments (such as asset type, guarantees, etc.) are also taken into account.

6. DESCRIPTION OF SIGNIFICANT ACCOUNTS

6.1 Cash and cash equivalents

Item	December 31, 2025	December 31, 2024
Cash on hand	$89	$488
Checking account	324	324
Demand deposits	83,852	87,104
Foreign currency deposits	6,230	52,528
Total	$90,495	$140,444

(1) The Company deposits its cash and cash equivalents at several financial institutions that have high credit quality to diversify its risk. Therefore, the Company considers its cash and cash equivalents to have low credit risk.

(2) The Company had no cash and cash equivalents pledged to others.

6.2 Financial instruments at fair value through profit or loss - current

Item	December 31, 2025	December 31, 2024
Forward exchange contracts	$(1,455)	$-

(1) The Company recognised net gain (loss) on financial instruments at FVTPL were ($1,455) thousand and $0 thousand for the year ended December 31, 2025 and 2024, respectively.

(2) The Company entered into derivative financial instruments to manage exposures due to exchange rate fluctuations of foreign currency denominated assets and liabilities. The Company's financial hedging strategy is aimed at hedging most of the market price or cash flow risks. The nature of the transaction and the contract information are as follows: December 31, 2025 :

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Item	Currency/Contract Amount	Contract period	Exercise Exchange rate
Forward exchange contracts	USD / NTD
USD 9,320	February 2026 to March 2026	30.924~31.320

December 31, 2024 : None

(3) Valuation techniques of financial instruments valued at fair value: The evaluation of derivative financial instruments is based on evaluation models widely accepted by market users, such as discounted and option pricing models or based on counterparty quotations.

6.3 Notes receivable, net

Item	December 31, 2025	December 31, 2024
At amortized cost
Notes receivable	$39,529	$61,829
Less: Loss allowance	(198)	(309)
Notes receivable, net	$39,331	$61,520

(1) The Company had no notes receivable pledged to others.
(2) Please refer to Note 6(4) for the relevant disclosure of loss allowance for notes receivable.

6.4 Accounts receivable, net

Item	December 31, 2025	December 31, 2024
At amortized cost
Accounts receivable	$838,994	$533,238
Less: Loss allowance	(4,195)	(2,666)
Accounts receivable, net	$834,799	$530,572

(1) The average credit period of sales of goods ranges from 7 to 60 days, which is determined by reference to the credit granting policy based on the counterparties' industrial characteristics, operation scales and profitability.
(2) The Company had no accounts receivable pledged to others.
(3) The Company using the simplified approach to recognize the loss allowance at an amount equal to lifetime expected credit losses (i.e. ECLs) for notes receivables and accounts receivables. The expected credit losses are calculated based on loss rates estimated by reference to past default experience and the current financial position of the debtor, adjusted for current and forecast economic conditions of the industry. As the Company's historical credit loss experience does not show significantly different loss patterns for different customer segments, the following provision matrix for loss allowance based on past due status is not further distinguished according to the Company's different customer base.
(4) The loss allowances for notes receivable and accounts receivable according to the

provision matrix were detailed below:

December 31, 2025	Expected credit loss rate	Gross carrying amount	Loss allowance (Lifetime ECL)	Amortized cost
Not past due	0.5%~1%	$878,523	($4,393)	$874,130
1-90 days	10%	-	-	-
91-180 days	50%	-	-	-
Over 180 days	100%	-	-	-
Total		$878,523	($4,393)	$874,130
December 31, 2024	Expected credit loss rate	Gross carrying amount	Loss allowance (Lifetime ECL)	Amortized cost
---	---	---	---	---
Not past due	0.5%~1%	$595,067	($2,975)	$592,092
1-90 days	10%	-	-	-
91-180 days	50%	-	-	-
Over 180 days	100%	-	-	-
Total		$595,067	($2,975)	$592,092

(5) The movements of the loss allowances for notes receivable and accounts receivable were as follows:

	Year Ended December 31
	2025	2024
Beginning balance	$2,975	$6,114
Add: Recognition of impairment losses	1,418	-
Less: Reversal of impairment losses	-	(3,139)
Ending balance	$4,393	$2,975

These amounts were recognized considering all other credit enhancements held by the Company. The other enhancements, such as letter of credits, held by the Company for these accounts receivable amounted to $624,490 thousand and $342,434 thousand as of December 31, 2025 and 2024, respectively.

The Company writes off an accounts receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery. However, the Company continues to engage in enforcement activity to recover the receivables due. Any recovered amounts are recognized in profit or loss. The Company has written off $0 thousand and $0 thousand for the years ended December 31, 2025 and 2024.

(6) Please refer to Note 12 for information on related credit risk management and evaluation method.

28 -

6.5 Inventories and costs of goods sold

Item	December 31, 2025	December 31, 2024
Raw materials	$412,340	$840,223
Supplies	397,525	406,158
Work in process	1,207,670	2,405,966
Finished goods	675,888	643,699
Other inventories	695	782
Total	$2,694,118	$4,296,828

(1) The related inventory gains (losses) recognized as costs of goods sold for the current year:

Items	Year ended December 31
	2025	2024
Cost of goods sold	$7,983,685	$9,601,364
Unallocated overheads	195,593	37,940
Total operating costs	$8,179,278	$9,639,304

(Note) Including the downtime loss incurred during the period from July to August 2025 due to the installation of energy-saving and carbon-reduction equipment and related commissioning operations; please refer to Note 9(5) for details.

(2) The Company recognized inventory valuation loss (gain) of both $0 thousand for the years ended December 31, 2025 and 2024, respectively, due to inventory's write-down to net realizable value, or the net realizable value of inventories recovered as a result of market stabilization.

(3) The Company had no inventories pledged to others.

6.6 Prepayments

Item	December 31, 2025	December 31, 2024
Overpaid sales tax	$-	$ 38,456
Prepayments to supplies	34,043	53,906
Prepaid expenses	36,014	26,061
Input Tax	6,947	14,013
Other prepayments	21,358	25,567
Total	$98,362	$158,003

6.7 Financial assets at fair value through other comprehensive income

Item	December 31
	2025	2024
Noncurrent
Equity instruments
Domestic unlisted shares	$5,732	$5,732
Domestic listed shares	15,187	15,187
Subtotal	$20,919	$20,919
Valuation adjustment	341,643	373,427
Total	$362,562	$394,346

(1) Investments in domestic listed and unlisted stocks are held for medium to long-term strategic purposes and are expected to be profitable through long-term investments. Accordingly, the management elected to designate these equity investments as at FVTOCI as they believe that recognizing short-term fluctuations in these investments' fair value in profit or loss would not be consistent with the Company's strategy of holding these investments for long-term purposes.

(2) Please refer to Note 12 for information on related credit risk management and evaluation method.

6.8 Property, plant and equipment

Item	December 31, 2025	December 31, 2024
Land	$1,745,971	$1,745,971
Buildings	1,388,148	1,375,487
Machinery	5,989,141	5,735,797
Other equipment	1,187,559	1,180,468
Equipment to be inspected and construction in progress	252,236	233,572
Total cost	$10,563,055	$10,271,295
Less: Accumulated depreciation	(6,417,986)	(6,044,475)
Total	$4,145,069	$4,226,820

Cost	Land	Buildings	Machinery	Other equipment	Equipment to be inspected and construction in progress	Total
Balance at January 1, 2025	$1,745,971	$1,375,487	$5,735,797	$1,180,468	$233,572	$10,271,295
Additions	-	8,428	82,583	2,003	260,072	353,086
Disposals	-	-	-	(2,765)		(2,765)
Reclassification	-	4,233	229,322	7,853	(241,408)	-
Equipment spare parts are transferred to the material inventory	-	-	(58,561)	-	-	(58,561)
Balance at December 31, 2025	$1,745,971	$1,388,148	$5,989,141	$1,187,559	$252,236	$10,563,055
Accumulated depreciation
Balance at January 1, 2025	$ -	$1,027,595	$3,954,094	$1,062,786	$ -	$6,044,475
Depreciation expense	-	28,939	296,383	50,954	-	376,276
Disposals	-	-	-	(2,765)	-	(2,765)
Balance at December 31, 2025	$ -	$1,056,534	$4,250,477	$1,110,975	$ -	$6,417,986
Costs	Land	Buildings	Machinery	Other equipment	Equipment to be inspected and construction in progress	Total
Balance at January 1, 2024	$1,150,473	$1,375,487	$5,087,161	$1,160,929	$624,697	$9,398,747
Additions	475,872	-	80,757	9,335	392,950	958,914
Reclassification	119,626	-	654,245	10,204	(784,075)	-
Transfer to expenses	-	-	(15,287)	-	-	(15,287)
Equipment spare parts are transferred to the material inventory	-	-	(71,079)	-	-	(71,079)
Balance at December 31, 2024	$1,745,971	$1,375,487	$5,735,797	$1,180,468	$233,572	$10,271,295
Accumulated depreciation and impairment
Balance at January 1, 2024	$ -	$998,626	$3,699,717	$994,907	$ -	$5,693,250
Depreciation expense	-	28,969	254,377	67,879	-	351,225
Balance at December 31, 2024	$ -	$1,027,595	$3,954,094	$1,062,786	$ -	$6,044,475

Please refer to Note 6.28 for information on interest capitalization.
Please refer to Note 8 for information on the property, plant and equipment that were pledged to others.
The Company is unable to register the land under its name due to restrictions by laws and regulations. Therefore, the land is temporarily registered under the name of an individual. The amounts for the land as of December 31, 2025 and 2024 are $165,972 thousand and $165,972, respectively. Accordingly, the ownership was registered under the name of an individual with an affidavit as safeguard measures, when the restriction was cancelled, the land will be unconditionally transfer to the Company. As of December 31, 2025, the mortgage rights of the above-mentioned assets have been set up. The obligee is the Company or used as collateral for the Company's loans.

Reconciliation of current additions and the acquisition of property, plant and equipment in statement of cash flows is as follows:

Items	Year ended December 31
	2025	2024
Increase in property, plant and equipment	$353,086	$958,914
Increase (decrease) in purchase of equipment payable	(22,252)	18,713
Cash paid for acquisition of property, plant and equipment	$330,834	$977,627

6.9 Lease agreements

(1) Right-of-use assets

	December 31
Item	2025	2024
Land	$63,807	$63,807
Transportation equipment	622	622
Total cost	$64,429	$64,429
Less: Accumulated depreciation	(35,884)	(30,846)
Right-of-use assets, net	$28,545	$33,583
Cost	Land	Transportation Equipment
---	---	---
Balance at January 1, 2025	$63,807	$622
Additions	-	-
Balance at December 31, 2025	$63,807	$622
Accumulated Depreciation
Balance at January 1, 2025	$30,224	$622
Depreciation	5,038	-
Balance at December 31, 2025	$35,262	$622

Cost	Land	Transportation Equipment	Total
Balance at January 1, 2024	$63,807	$622	$64,429
Additions	-	-	-
Balance at December 31, 2024	$63,807	$622	$64,429
Accumulated Depreciation and Impairment
Balance at January 1, 2024	$25,187	$622	$25,809
Depreciation	5,037	-	5,037
Balance at December 31, 2024	$30,224	$622	$30,846

(2) Lease liabilities

Item	December 31, 2025	December 31, 2024
Carrying amount of lease liabilities
Current	$5,179	$5,034
Noncurrent	$26,201	$31,380

The ranges of discount rates for the lease liabilities:

Item	Year ended December 31
	2025	2024
Land/Transportation equipment	2.68% ~ 2.83%	2.68% ~ 2.83%

Please refer to Note 12(2) for information on the maturity analysis of the lease liabilities.

(3) Material lease-in activities and terms

The Company leases land and transportation equipment for the use of plants and official vehicles. The lease terms range from 1 to 3 years. The Company has an option to renew part of the leases at the end of the lease terms. The company recognizes the lease renewal rights as lease liabilities. There was no indication of impairment for right-of-use assets as of December 31, 2025. Therefore, no impairment assessment was performed for these assets.

(4) Subleases of right-of-use assets: None.

(5) Other lease information:

Cash outflow relating to leases for the year is as follows:

Item	Year ended December 31
	2025	2024
Expenses relating to short-term leases	$2,915	$2,880
Expenses relating to low-value asset leases	$ -	$ -
Expenses relating to variable lease payments not included in the measurement of lease liabilities	$ -	$ -
Total cash outflow for leases (Note)	($7,949)	($7,774)

(Note): Payments of the principal portion of lease liabilities are included.

The Company elected to apply the recognition exemption for short-term leases and low-value asset leases and, thus, did not recognize right-of-use assets and lease liabilities.

6.10 Investment properties

Items	December 31, 2025	December 31, 2024
Land	$2,709	$2,709
Building	5,320	5,320
Total costs	$8,029	$8,029
Less: accumulated depreciation and impairment	(8,029)	(8,029)
Net	$ -	$ -

6.11 Intangible Assets

Item	December 31, 2025	December 31, 2024
Computer software	$4,732	$3,179
Less: Accumulated amortization	(3,408)	(3,002)
Net	$1,324	$177
Cost	December 31, 2025	December 31, 2024
---	---	---
Opening balance	$3,179	$3,179
Additions	1,553	-
Ending balance	$4,732	$3,179
Accumulated amortization	December 31, 2025	December 31, 2024
---	---	---
Opening balance	$3,002	$2,600
Amortization	406	402
Ending balance	$3,408	$3,002

6.12 Short-term loans

The Nature of loans	December 31, 2025
	Amount	Interest rate
Purchase loans	$279,678	2.23% - 5.98%
Unsecured loans	150,000	1.98%- 2.39%
Total	$429,678

The interest rate of New Taiwan dollar borrowing is 1.98%~2.39%, and the interest rate of US dollar borrowing is 4.85%~5.98.

The interest rate of New Taiwan dollar borrowing is 1.95%-2.43%, and the interest rate of US dollar borrowing is 5.51%.

6.13 Short-term notes and bills payable

Item	December 31, 2025	December 31, 2024
Commercial paper	$100,000	$550,000
Less: unamortized discount	(61)	(965)
Net	$99,939	$549,035
Interest Rate Range	1.50%-1.77%	1.56%-1.87%

6.14 Other payables

Item	December 31, 2025	December 31, 2024
Water and electricity charges	$69,404	$75,915
Accrued payroll	48,374	56,494
Equipment payable	39,424	17,172
Interest payable	2,104	2,774
Slag cleaning freight	73,832	79,533
Quantity discounts	2,422	6,477
Bonus to employees and remuneration to directors - last period	69	40
Bonus to employees and remuneration to directors - current period	2,573	9,317
Dividends payable	-	97,207
Purchase bonus	33,854	38,378
Other payables	23,952	19,428
Total	$296,008	$402,735

6.15 Provisions - current

Item	December 31, 2025	December 31, 2024
Employee benefits	$17,439	$14,905
Onerous purchase contracts	4,800	-
Total	$22,239	$14,905

— 35 —

Item	Employee benefits	Provision for carbon fees	Total
January 1, 2025	$14,905	$ -	$14,905
Recognized during the period	17,439	4,800	22,239
Used during the period	(14,905)	-	(14,905)
December 31, 2025	$17,439	$4,800	$22,239
Items	Employee benefits	Provision for carbon fees	Total
---	---	---	---
January 1, 2024	$13,979	$ -	$13,979
Recognized during the period	14,905	-	14,905
Used during the period	(13,979)	-	(13,979)
December 31, 2024	$14,905	$ -	$14,905

Provision for employee benefits is an estimate of employee's vested short-service leave.
Provision for carbon fees: The Company plans to submit a self-reduction plan and an application for identification as a high carbon leakage risk industry in May 2025. The Company comprehensively considers the available internal and external information, evaluates whether preferential rates and emission adjustment coefficients should be applicable, and estimates the carbon fee liability provision based on the ratio of emissions from January to September 2025 to the estimated carbon emissions for 2025. According to regulations, the carbon fee for 2025 should be paid in May 2026.

6.16 Long-term loans and current portion

Item	December 31, 2025	December 31, 2024
Unsecured loans	$832,558	$460,006
Secured loans	1,077,281	1,537,460
Subtotal	$1,909,839	$1,997,466
Less: Current portion	(270,963)	(191,979)
Less: Unamortized discount	(885)	(3,155)
Total	$1,637,991	$1,802,332
Interest rate range	1.595%-2.529%	1.72%-2.5284%

According to loan agreements, the Company shall set up a special account for operating receipts in Mega International Commercial Bank, and promise that the cumulative amount of remittance (deposit) shall not be less than a certain amount every quarter from the day of drawing, and the average balance of the special account shall not be less than a certain amount in 3 months. Except for the quarter of the day of drawing, the review date will be the end of each quarter. If the Company does not meet the above creteria, the interest rate will be increased by another 0.1% from the next day of the quarter until the creteria is met. The Company has met the creteria of the

contract in the recent quarter.

According to loan agreements, the Company shall maintain specific current ratios, debt ratios and interest coverage ratios after loan disbursement. After the day of drawing, the above-mentioned financial ratios of the annual financial reports shall be reviewed by the end of May each year, and the short-term borrowing limit shall not exceed 30,000 thousand if the above-mentioned financial ratios of the annual financial reports do not meet the creteria. The above-mentioned financial ratios of the second quarter financial reports shall continue to be reviewed, and if they do not meet the creteria, the short-term borrowing limit shall be reviewed. After reviewing the 2025 annual financial report, the financial ratios met the requirements of the loan contract.
Please refer to Note 8 for collaterals pledged for long-term borrowings.

6.17 Long-term deferred revenue

Item	December 31, 2025	December 31, 2024
Deferred revenue:
Equipment subsidy	$5,000	$ -
Less: cumulated recognized revenue	(500)	-
Less: reclassified advance receipts
(current portion)	(500)	-
Ending balance	$4,000	$ -

The company obtained the waste heat and waste cold recovery technology demonstration application project subsidy - steel drum preheater regenerative combustion and fuel conversion project through the Ministry of Economic Affairs, and received the equipment purchase subsidy in February 2025.

6.18 Pension

Defined contribution plans

(1) The employee pension plan under the Labor Pension Act of the R.O.C. (the Act) is a defined contribution plan. Pursuant to the plan, the Company makes monthly contributions of 6% of each individual employee's salary or wage to employees' pension accounts.

(2) The amount to be contributed under the defined contribution plans was recognized as expense in the statements of comprehensive income, totaled $9,813 thousand and $9,881 thousand for the years ended December 31, 2025 and 2024 respectively.

Defined benefit plans

(1) The Company has a respective defined benefit pension plan in accordance with the Labor Standards Law of the R.O.C. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company contributes monthly an amount equal to 2% of the employees' monthly salaries and wages to the retirement fund deposited in Bank of Taiwan, the trustee, under the name of the independent retirement fund committee.

— 36 —

Also, the Company would assess the balance in the aforementioned labor pension reserve account by the end of each year. If the account balance is not enough to pay the pension to the labors expected to be qualified for retirement in the following year, the Company will make contribution for the deficit by next March. The pension fund is managed by the government's designated authorities and the Company has no right to influence their investment strategies. The difference is allocated to the special account, and write off the net defined benefit liability are $0 thousand on March 31, 2025 and 2024.

(2) Amounts incurred from defined benefit plans were recognized for obligations in the balance sheet as follows:

Items	December 31, 2025	December 31, 2024
Present value of defined benefit obligations	$84,431	$86,263
Fair value of plan assets	(60,801)	(55,222)
Net defined benefit liabilities (assets)	$23,630	$31,041

(3) Movements in net defined benefit liabilities are as follows:

Item	Year ended December 31, 2025
	Present value of defined benefit obligations	Fair value of plan asset	Net defined benefit liability
Balance at January 1	$86,263	(55,222)	$31,041
Service cost
Current service cost	564	-	564
Interest expense (revenue)	1,349	(900)	449
Past service cost	-	-	-
Recognized in profit or loss	$1,913	($900)	$1,013
Remeasurements
Return on plan assets (excluding amounts included in net interest)	$-	($3,861)	($3,861)
Actuarial losses (gains) -
Effect of change in demographic assumptions	-	-	-
Effect of change in financial assumptions	1,424	-	1,424
Experience adjustments	(1,048)	-	(1,048)
Recognized in other comprehensive income	$376	($3,861)	($3,485)
Contribution from the employer	$-	($4,939)	($4,939)
Paid Pension	(4,121)	4,121	-
Balance at December 31	$84,431	($60,801)	$23,630

Items	Year ended December 31, 2024
	Present value of defined benefit obligations	Fair value of plan assets	Net defined benefit liabilities
Balance at January 1	$93,047	($50,480)	$42,567
Service cost
Current service cost	423	-	423
Interest expense (revenue)	1,093	(620)	473
Past service cost	-	-	-
Recognized in profit or loss	$1,516	($620)	$896
Remeasurements
Return on plan assets (excluding amounts included in net interest)	$-	($4,427)	($4,427)
Actuarial losses (gains) -
Effect of change in demographic assumptions	-	-	-
Effect of change in financial assumptions	(2,593)	-	(2,593)
Experience adjustments	(186)	-	(186)
Recognized in other comprehensive income	($2,779)	($4,427)	($7,206)
Contribution from the employer	$-	($5,216)	($5,216)
Paid Pension	(5,521)	5,521	-
Balance at December 31	$86,263	($55,222)	$31,041

(4) Because of the defined benefit plans under the Labor Standards Law, the Company is exposed to the following risks:

A. Investment risk

The pension funds are invested in equity and debt securities, bank deposits, etc. at the discretion of the Bureau of Labor Funds of Ministry of Labor, or under the mandated management. However, under the Labor Standards Law, the rate of return on plan assets shall not be less than the average interest rate on a two-year time deposit published by the local banks.

B. Interest rate risk

A decrease in the government bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the debt investments of the plan assets.

C. Salary risk

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

(5) The actuarial valuations of the present value of the defined benefit obligation were carried out by qualified actuaries. The significant assumptions of the actuarial valuations were as follows:

Measurement date December 31

Item	2025	2024
Discount rate
Employee	1.35%	1.60%
Manager	1.35%	1.60%
Rate of future salary increase	2.00%	2.00%
The weighted average duration of the defined benefit obligation - employee	6years	7 years
The weighted average duration of the defined benefit obligation - manager	6years	7 years

A. Assumptions on future mortality experience are set based on the 6th Taiwan Standard Ordinary Experience Mortality Table (TSO).
B. If possible reasonable change in each of the significant actuarial assumptions will occur and all other assumptions will remain constant, the present value of the defined benefit obligation would increase (decrease) as follows:

December 31, 2025:

Items	Employee	Manager
Discount rate
0.25% increase	(1,252)	(128)
0.25% decrease	1,286	131
Expected rate of salary increase
0.25% increase	1,275	129
0.25% decrease	(1,247)	(127)

December 31, 2024:

Items	Employee	Manager
Discount rate
0.25% increase	(1,403)	(140)
0.25% decrease	1,444	143
Expected rate of salary increase
0.25% increase	1,434	142
0.25% decrease	(1,401)	(140)

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

(6) The Company’s contribution for expected payment of pension plans for the year ended December 31, 2025 is $5,502 thousand.

6.19 Share capital

The movements in the number of the Company’s ordinary shares outstanding are as follows:

Items	Year ended December 31, 2025		Year ended December 31, 2024
	Shares (in thousands)	Amount	Shares (in thousands)	Amount
Ordinary shares	325,715	$3,257,148	325,715	$3,257,148

As of December 31, 2024, the authorized capital amount of the Company is $7,200,000 thousand, consisting of 720,000 thousand shares, at par value of $10 per share. The Company’s paid-in capital is $3,257,148 thousand, consisting of ordinary shares.

6.20 Retained earnings and dividend policy

According to the earnings distribution policy of the Company's articles of association, the Company's surplus earnings distribution or loss make-up can be done after the end of each quarter. If there is a surplus in the quarterly final accounts, it should first estimate and retain the tax payable, make up for the accumulated losses, estimate and retain the employee's remuneration and director's remuneration, and add 10% to the statutory reserve. When the legal reserve equals the Company's paid-in capital, 10% of the remaining amount is no longer to be set aside as legal reserve. The special earnings reserve shall be recognized or reversed in accordance with laws and regulations. If there is still a earnings, the balance shall be added to the accumulated undistributed earnings of the previous quarter, and the board of directors shall prepare a earnings distribution proposal. When earnings are distributed in cash, it shall be subject to a resolution of the board of directors, and when earnings are distributed in the form of new shares, it shall be submitted to the shareholders' meeting for resolution. The Company's dividend policy is based on current and future development plans, consideration of the investment environment, domestic and foreign competition conditions, and maintenance of a sound long-term financial structure, as well as factors such as shareholders' interests. The total expected dividend distribution in cash is not less than 30% of the current after-tax net profit after making up for past losses, deducting legal reserve and the provision or reversal of special earnings reserve in accordance with laws and regulations. Except for improving the financial structure and meeting the capital needs of major capital expenditures, cash dividends shall not be less than 10% of the total dividends distributed in the current year.
Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is limited to the portion in excess of 25% of the

— 40 —

Company's paid-in capital.

The shareholders' meeting on June 12, 2024 approved the earnings distribution plan for the fourth quarter of 2023 and the board of directors in August 2024 approved the earnings distribution plan for the second quarter of 2024. The appropriations and dividends per share were as follows:

	Appropriation of Earnings			Dividends Per Share (NT$)
Item	For Fiscal Year 2023	The second quarter of 2024		The fourth quarter of 2023	The second quarter of 2024
Resolution Date	June 20, 2024	August 13, 2024	Total
Legal reserve	$9,625	$24,491	$34,116
Cash dividends	97,207	97,207	194,414	$0.30	$0.30
Total	$106,832	$121,698	$228,530

The shareholders' meeting on June 18, 2025 approved the earnings distribution plan for the fourth quarter of 2024 and the board of directors on August 11, 2025 approved the earnings distribution plan for the second quarter of 2025. The appropriations and dividends per share were as follows:

	Appropriation of Earnings			Dividends Per Share (NT$)
Item	The fourth quarter of 2024	The second quarter of 2025		The fourth quarter of 2023	The second quarter of 2024
Resolution Date	June 18, 2025	August 11, 2025	Total
Legal reserve	$7,850	$-	$7,850
Cash dividends	-	-	-	$-	$-
Total	$7,850	$-	$7,850

Reconciliation of the dividends resolved and cash dividends paid in statement of cash flows is as follows:

	Year ended December 31
Item	2025	2024
Cash dividend for the period	$-	$194,414
Increase or decrease in dividends payable	97,207	65,018
Amount of cash dividends paid in the current period	$97,207	$259,432

The earnings distribution plan for the fourth quarter of 2025 approved by the Board of Directors is as follows:

Item	Appropriation of Earnings	Dividends
The fourth quarter of 2025
Resolution Date	March 12, 2026	Per Share (NT$)
Legal reserve	$9,293
Cash dividends	64,804	$0.2
Total	$74,097

The appropriations of earnings for the fourth quarter of 2025 are to be presented for approval in the shareholders meeting to be held in June 2026.

Information on the resolution of the board of directors' and shareholders' meetings regarding the appropriation of earnings is available from the "Market Observation Post System" on the website of the TWSE.

6.21 Other Equity Items

	Unrealized gains (losses) on valuation of financial assets at FVTOCI
	Year Ended December 31
Item	2025	2024
Beginning balance	$373,427	$292,105
Unrealized gains (losses) on valuation	(31,784)	81,322
financial assets at FVTOCI
Ending balance	$341,643	$373,427

6.22 Treasury stock

Reasons for share repurchase and movements in the number of the treasury shares are as follows:

2025:

	Unit: in thousand
	Year ended December 31, 2025
Reasons for share repurchase	January 1	Increase during the year	Decrease during the year	December 31
To be reissued to employees	1,693	-	-	1,693

2024 :

Unit: in thousand

	Year ended December 31, 2024
Reasons for share repurchase	January 1	Increase during the year	Decrease during the year	December 31
To be reissued to employees	1,583	110	-	1,693

(1) The Company repurchased 2,000 thousand shares of ordinary stock from August 12, 2022 to October 11, 2022 at a price range of $18 to $28 per share by resolution of the Board of Directors on August 11, 2022 to motivate employees and retain outstanding talent. However, if the share price falls below the lower limit of the originally agreed range, the Company will continue to buy back the Company's shares, and as of October 11, 2022, the expiration date of the repurchase period, the Company has repurchased a total of 1,005 thousand shares.

(2) The Company repurchased 1,000 thousand shares of ordinary shares from November 11, 2022 to January 9, 2023 at a price range of $18 to $24 per share by resolution of the Board of Directors on November 10, 2022 to motivate employees and retain outstanding talent. However, if the share price falls below the lower limit of the originally agreed range, the Company will continue to buy back the Company's shares, and as of December 31, 2022 and January 9, 2023, the expiration date of the repurchase period, the Company executed the repurchase of a total of 259 thousand shares.

(3) The Company repurchased 2,000 thousand shares of ordinary shares from November 13, 2023 to January 12, 2024 at a price range of $18 to $25 per share by resolution of the Board of Directors on November 10, 2023 to motivate employees and retain outstanding talent. However, if the share price falls below the lower limit of the originally agreed range, the Company will continue to buy back the Company's shares, and as of December 31, 2023, a total of 319 thousand shares have been repurchased. In addition, as of January 12, 2024, the expiration date of the repurchase period, the Company executed the repurchase of a total of 429 thousand shares.

Pursuant to the R.O.C. Securities and Exchange Law, the number of shares bought back as treasury share should not exceed 10% of the number of the Company's issued, outstanding shares and the amount bought back should not exceed the sum of retained earnings, paid-in capital in excess of par value and realised capital surplus.
Pursuant to the R.O.C. Securities and Exchange Law, treasury shares should not be pledged as collateral and are not entitled to dividends before they are reissued.
Pursuant to the R.O.C. Securities and Exchange Law, treasury shares should be reissued to the employees within five years from the repurchase date and shares not reissued within the five-year period are to be retired. Treasury shares for protecting the

Company's credit rating and the stockholders' interest should be retired within six months of repurchase.

6.23 Operating Revenue

Item	Year Ended December 31
	2025	2024
Revenue from contracts with customers
Sales of products	$8,541,339	$10,234,286
Sales of scraps	4,034	4,288
Total sales revenue from contracts with customers	$8,545,373	$10,238,574
Less: Sales return	(3,517)	(3,633)
Sales discount	(28,320)	(38,809)
Net sales revenue from contracts with customers	$8,513,536	$10,196,132

(1) Description of contract revenue

Sales and processing income of steel rebars and steel billets, wire rods and bars steel are mainly to traders and downstream manufacturers, and are sold at fixed prices per contractual terms, according to business practices, offer quantity discount for some products.

(2) Contract revenue details as follows:

The Company disaggregated revenue from contracts with customers into primary geographical markets and major goods line as follows:

Region	Year ended December 31
	2025	2024
Taiwan	$7,604,481	$9,652,684
Australia	909,055	543,448
Total	$8,513,536	$10,196,132
Service
Bars steel	$825,235	$955,926
Wire rods	394,263	427,939
Steel billets	646	92,623
Steel rebars	7,287,365	8,713,150
Others	6,027	6,494
Total	$8,513,536	$10,196,132

Timing of revenue recognition

Revenue recognition at a specific timing	$8,513,536	$10,196,132
Revenue recognition over time	-	-
Total	$8,513,536	$10,196,132

(3) Contract balances

The Company recognized the accounts receivable, contract assets and contract liabilities related to customer contract revenue as follows:

	December 31		January 1
	2025	2024	2024
Accounts receivable	$874,130	$592,092	$1,216,707
Contract Assets	-	-	-
Total	$874,130	$592,092	$1,216,707
Contract liabilities	$306,908	$378,720	$29,999

(4) Significant change in contract assets and contract liabilities

The change in contract assets and contract liabilities primarily result from the timing difference between the satisfaction of performance obligation and the customer's payment.

(5) The allowance for contract assets: None.
(6) Amount of satisfaction of performance obligations from previous period and beginning contract liabilities recognized in the current period as income were as follows:

	Year Ended December 31
Revenue in the current period	2025	2024
From beginning contract liabilities - goods sale	$328,955	$19,661
From the previous period’s satisfied performance	$ -	$ -

6.24 Employee benefits, depreciation, depletion and amortization expense

Nature	Year ended December 31, 2025
	Operating costs	Operating expenses	Total
Employee benefits
Salary	$208,877	$52,197	$261,074
Insurance	21,844	6,057	27,901
Pension	8,856	1,970	10,826
Remuneration to director	-	4,720	4,720
Other	55,992	4,269	60,261
Depreciation	372,746	8,568	381,314
Amortization	-	406	406
Total	$668,315	$78,187	$746,502

46 -

Year ended December 31, 2024

Nature	Operating costs	Operating expenses	Total
Employee benefits
Salary	$215,932	$59,679	$275,611
Insurance	21,372	6,225	27,597
Pension	8,580	2,197	10,777
Remuneration to director	-	7,476	7,476
Other	54,589	5,562	60,151
Depreciation	346,974	9,288	356,262
Amortization	-	402	402
Total	$647,447	$90,829	$738,276

Additional information of the number of employees and employee benefits expenses as of December 31, 2025 and 2024 were as follows:

Item	December 31
	2025	2024
The number of employees	391	387
The number of directors did not serve concurrently as employee	6	7
Average employee benefits expenses	$935	$985
Average employee salary	$677	$725
Changes in adjusting average employee salary	(6.62%)	6.30%

The Company's salary and remuneration policy, including that for directors, managers and employees, is as follows:

(1) Directors' remuneration:

The remuneration to the directors shall be determined by the Board of Directors according to their degree of participation in the operation of the Company, the value of their contribution, and the general levels of the industry. The Company's Articles of Incorporation clearly stipulate that not higher than 2% of the annual profit shall be allocated as the director's remuneration.

(2) Managers' remuneration:

The remuneration to the managers is based on their duties, contributions, the Company's annual operation performance and in consideration of the Company's future risks, and is reviewed by the remuneration committee and submitted to the Board of Directors for resolution.

(3) Employees' compensation:

The Company is committed to providing employees with an industry-average

salary and benefits. Under the premise of taking into account external competition, internal fairness and legitimacy, provide a competitive compensation system, and uphold the concept of profit sharing with employees, stay and motivate employees. The compensation of our employees includes monthly salaries and employee compensation paid by the Company on the basis of annual profitability.

According to the Company's Articles of Incorporation, the Company shall appropriate employee compensation at a rate of $2\%$ to $5\%$ and directors' remuneration at a rate not exceeding $2\%$ of net profit before income tax. After offsetting any accumulated losses, if there is a remaining balance, the aforesaid appropriations shall be made, of which no less than $60\%$ of the total employee compensation actually appropriated shall be distributed to grassroots employees. Such employee compensation shall be distributed in the form of shares or cash as resolved by the Board of Directors.
The employees' compensation and remuneration to directors for the years ended December 31, 2025 and 2024 had been approved by the Board meeting held on March 12, 2026 and March 12, 2025, respectively, and the relevant amounts recognized in the parent company only financial statement were as follows:

	Year ended December 31
	2025		2024
	Employees’ compensation	Remuneration to directors	Employees’ compensation	Remuneration to directors
Resolution amount of allotment	$2,058	$515	$7,454	$1,863
Recognized in the annual financial statements	2,058	515	7,454	1,863
Difference	$ -	$ -	$ -	$ -

Information about the appropriation of employees' compensation and directors' remuneration by the Company as proposed by the Board of Directors are posted in the "Market Observation Post System" at the website of the Taiwan Stock Exchange.

6.25 Interest income

Item	Year Ended December 31
	2025	2024
Interest on bank deposits	$1,473	$1,552
Others	34	34
Total	$1,507	$1,586

-48-

6.26 Other income

Item	Year ended December 31
	2025	2024
Dividends	$20,810	$14,899
Income from disposal of iron scraps	8,044	1,249
Income from subsidy of government	500	888
Income from cancellation of contract compensation	-	14,952
Others	453	419
Total	$29,807	$32,407

6.27 Other gains and losses

Item	Year ended December 31
	2025	2024
Net gain (loss) on foreign exchange	($5,134)	$15,547
Gain (loss) on disposal of property, plant and equipment	30	-
Valuation gain (loss) of financial assets measured at FVTPL	(1,455)	-
Others	(4,494)	(4,718)
Total	($11,053)	$10,829

6.28 Finance costs

Item	Year ended December 31
	2025	2024
Interest on loans	$62,510	$64,878
Lease liabilities	966	1,106
Subtotal	$63,476	$65,984
Less: Qualified asset capitalization	(4,839)	(7,560)
Finance costs	$58,637	$58,424

—49—

6.29 Income tax

Income tax expense

(1) Components of income tax expenses:

Item	Year Ended December 31
	2025	2024
Current income tax
Current income tax on profits for the year	$11,547	$52,499
Adjustments for prior periods	(217)	(10,435)
Income tax expense recognized in profit or loss	$11,764	$42,064
Deferred income tax
Origination and reversal of temporary differences	($876)	$5,101
Deferred income tax expense	($876)	$5,101
Income tax expense (benefit)	$10,888	$47,165

(2) Income tax expenses (benefit) relating to other comprehensive income: None.

Reconciliation between income tax and accounting profit for current year:

Items	Year ended December 31
	2025	2024
Net profit before tax	$100,335	$363,368
Tax on net profit before tax at statutory rate	$20,067	$72,674
Tax effect of adjusted items:
Slag cleaning freight have not been realized	(1,140)	(6,250)
Other adjustment	(2,431)	(4,085)
Adjustments for prior periods	217	(10,435)
Investment tax credits	(4,949)	(9,840)
Deferred income tax	(876)	5,101
Income tax expenses recognized in profit (loss)	$10,888	$47,165

The applicable business tax rate used by the Company is 20%. In addition, the tax rate applicable to unappropriated earning is 5%.

Deferred income tax assets or liabilities as a result of temporary difference, loss carry forwards and investment credit:

Item	Year ended December 31, 2025
	Beginning balance	Recognized in profit or loss	Recognized in other comprehensive income	Ending balance
Deferred income tax assets:
Temporary difference
Return and discount liabilities	$1,295	($811)		$484
Unrealized slag cleaning freight	15,907	(1,140)		14,767
Others	2,981	2,745		5,726
Subtotal	$20,183	$794		$20,977
Deferred income tax liabilities
Others	($82)	$82		$-
Subtotal	($82)	$82		$-
Total	$20,101	$876		$20,977
	Year ended December 31, 2024
Item	Beginning balance	Recognized in profit or loss	Recognized in other comprehensive income	Ending balance
Deferred income tax assets:
Temporary difference
Return and discount liabilities	$210	$1,085		$-
Unrealized slag cleaning freight	22,157	(6,250)		15,907
Others	2,835	146		2,981
Subtotal	$25,202	($5,019)		$-
Deferred income tax liabilities
Others	$-	($82)		$-
Subtotal	$-	($82)		$-
Total	$25,202	($5,101)		$-

Not recognized as deferred income tax assets item:

Item	December 31, 2025	December 31, 2024
Pensions	$5,626	$6,208
Others	4,900	4,900

The Company's tax returns through 2023 have been assessed by the tax authorities.

6.30 Other comprehensive income (loss)

Nature	Year ended December 31, 2025
	Amount before tax	Income tax benefit (expense)	Net after tax
Items that will not be reclassified subsequently to profit or loss:
Remeasurements of defined benefit obligation	$3,485	$ -	$3,485
Unrealized gain (loss) on equity instruments at fair value through other comprehensive income	(31,784)	-	(31,784)
Recognized in other comprehensive income (loss)	($28,299)	$ -	($28,299)
Nature	Year ended December 31, 2024
---	---	---	---
	Amount before tax	Income tax benefit (expense)	Net after tax
Items that will not be reclassified subsequently to profit or loss:
Remeasurements of defined benefit obligation	$7,206	$ -	$7,206
Unrealized gain (loss) on equity instruments at fair value through other comprehensive income	81,322	-	81,322
Recognized in other comprehensive income (loss)	$88,528	$ -	$88,528

6.31 Earnings per share

Item	Year Ended December 31
	2025	2024
A.Basic earnings (loss) per share
Net income	$89,447	$316,203
Weighted average number of outstanding shares (thousand shares)	324,026	324,026
Basic earnings (loss) per share (after tax) (NT$)	$0.28	$0.98

B. Diluted earnings (loss) per share

Net income	$89,447	$316,203
Effect of the dilutive potential ordinary shares	-	-
Net income for calculating diluted earnings per share	$89,447	$316,203
Weighted average number of outstanding shares (thousand shares)	324,026	324,026
Effect of employees’ compensation (thousand shares) (Note)	193	395
Weighted average number of ordinary shares outstanding after dilution (thousand shares)	324,219	324,421
Diluted earnings (loss) per share (after tax)(NT$)	$0.28	$0.97

(Note) Since the Company offered to settle compensation paid to employees in cash or shares, the Company assumed the entire amount of the compensation would be settled in shares and the resulting potential shares were included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.

7. RELATED PARTY TRANSACTIONS

7.1 Parent and ultimate controller:

The Company does not have parent and ultimate controller.

7.2 Related party name and category:

Related Party Name	Related Party Category
Kuo Su-Hui	Main management
Kuo Shin-Hsien	Main management
Dai Ruei-Yi	Other related parties
Kuo Wen-Zhen	Other related parties
We Can Steel Co., Ltd.	Other related parties
Chien Yao Technology Co., Ltd.	Other related parties

7.3 Significant transactions with related parties:

(1) Sales:

Related Party Category	Year ended December 31
	2025	2024
Other related party
Other	$15	$17

Selling price and trading terms to the Company's related parties were the same with those to other customers. Payment terms were 10 days settlement once, 20 days TT. In addition, both parties can agree to postpone the payment.

(2) Purchase:

	Year ended December 31
Type of related parties	2025	2024
Other related parties
Other	$306,832	$352,573

The purchase prices with the related parties are equivalent to those with ordinary suppliers. Payment terms were 10 days settlement once, 20 days TT. However, both parties can agree to postpone the payments.

(3) Contract assets: None.
(4) Contract liabilities

	Year ended December 31
Type of related parties	2025	2024
Other related parties
Other	$63	$1,512

(5) Receivables from related parties (excluding loans to related parties and contract assets): None.
(6) Payables to related parties (excluded loans from related parties)

		December 31
Item	Related party category/Name	2025	2024
Accounts payable	Other related parties
	Other	$17,617	$30,681

(7) Lessee agreement:

A. Acquisition of right-of-use asset: None.
B. Lease liabilities

		December 31
Type of related party	Lease target	2025	2024
Other related party /Dai Ruiyi	Land in NanBu Section	$-	$14,930
Other related party / Kuo Wen-Zhen	Land in NanBu Section	31,380	21,484
Total		$31,380	$36,414

C. Lease liabilities - Interest expense

	Year Ended December 31
Related Party Category	2025	2024
Other related parties	$966	$1,106

Above lease terms were based on the contract, and rent was paid monthly.

(8) Loans to related parties: None.
(9) Borrowing to related parties: None.
(10) Endorsements and guarantees: None.
(11) Others

A. Miscellaneous income

	Year Ended December 31
Related party category/Name	2025	2024
Other related parties	$35	$16

These were mainly related to steel products cutting and other income.

B. Others

Type of related parties

Key management of the Company

Significant Transactions

The Company's land amounting to $165,972 thousands of December 31 2025 and 2024, respectively, is unable to be registered under the name of the Company due to regulatory restriction. Accordingly, the ownership was registered under the name of an individual with an affidavit as safeguard measures, when the restriction was cancelled, the land will be unconditionally transfer to the Company. As of December 31, 2025, the procedure of setting up the mortgage right to the Company was completed.

7.4 Information about remunerations to the major management:

	Year Ended December 31
Item	2025	2024
Salary and other short-term employee benefits	$9,874	$12,916
Benefits after retirement	108	108
Total	$9,982	$13,024

—55—

8. PLEDGED ASSETS

The following assets have been pledged as collateral for long-term and short-term loans:

Item	December 31
	2025	2024
Other financial assets – current	$5,073	$39,527
Property, plant and equipment (net)	1,982,093	2,023,870
Total	$1,987,093	$2,063,397

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

(1) Guarantee notes issued to banks by the Company for loans totaled $1,610,948 thousand and $1,378,742 thousand as of December 31, 2025 and 2024, respectively, and recognized as deposit guarantee notes and guarantee notes payable.

(2) Guarantee notes received by the Company for its performance totaled $164,974 thousand and $199,586 thousand as of December 31, 2025 and 2024, respectively, and recognized as guaranteed notes received and guaranteed notes receivable.

(3) The unused letters of credit December 31 were as follows:

Unit: in thousands

Item	December 31
	2025	2024
L/C Amount	EUR	- EUR	85
	USD	1,658 USD	9,336
	JPY	15,787 JPY	2,964

(4) Capital expenditures committed but not yet incurred are as follows:

Related Party Category	December 31
	2025	2024
Property, plant and equipment	$172,903	$179,225

(5) In order to comply with the government's 2050 net zero carbon emissions policy goal and fulfill corporate social responsibility, the Company plans to implement energy-saving and carbon-reducing equipment to improve manufacturing efficiency and process, reducing carbon emission per unit, and invest in solar photovoltaic. The duration of the plan is from October 2022 to September 2027. In investment plan, the Company expects to purchase machinery and equipment of $1,496,269 thousand, and as of December 31, 2025, the Company has invested $1,184,623 thousand (including amounts of installed equipment). In order to cooperate with the installation and commissioning of energy-saving and carbon-reducing equipment, the company's steelmaking and rolling production lines are expected to be temporarily shut down for about one month and half a month from July 21 and August 5, 2025, respectively. The fixed cost loss during the shutdown period is estimated to be about $80,350 thousand (Including expenses related to the suspension period amounting to NT$13,353 thousand and unallocated fixed overhead of NT$66,997 thousand.). However, after

the equipment is installed, in addition to improving the energy-saving and carbon-reducing efficiency of the equipment, increasing production capacity and production efficiency, which is conducive to reducing production costs, it can also reduce the unit carbon emissions of products and relatively reduce future environmental protection-related costs, which will help improve the company's competitiveness and fulfill its corporate social responsibility.

(6) The Company's board of directors passed a resolution on November 11, 2024, that in order to respond to the expansion of demand for moulded products, the Company plans to expand the cutting plant on the land purchased on June 6, 2024 in the Fu'an section of Guantian District, Tainan City, and is expected to invest approximately 805,000 thousand (including the land price of 563,000 thousand) between 2024 and 2027 years. As of December 31, 2025, an amount of $609,455 thousand had been invested., in addition, in response to the global environmental protection awareness and actively promote the energy transition, The Company also plans to install solar photovoltaic equipment on the rooftop of the cutting plant to be expanded on the land in the Fu'an section of Guantian District., with an estimated investment of about 80,000 thousand, in an effort to achieve the sustainable development goals..

SIGNIFICANT DISASTER LOSS: NONE.
SIGNIFICANT SUBSEQUENT EVENTS: NONE.
OTHERS

(1) Capital risk management

As the Company needs to maintain sufficient capital to meet the needs for expansion and plant and equipment improvement, capital management of the Company focuses on ensuring there are sufficient financial resources and operating plans to meet the demands for operating capital, capital expenditure, research and development expense, loan repayment and dividend distribution in the next 12 months.

(2) Financial Instruments

A. Financial risk of financial instruments

Financial risk management policies

The Company's daily operations are affected by various financial risks, e.g. market risk (including exchange rate, interest rate and price risks), credit risk and liquidity risk. The Company is devoted to identify, assess and avoid market uncertainties in order to eliminate the potential adverse effects of market changes on the financial performance. Before engaging in significant transactions, due approval process by the Board of Directors must be carried out based on related protocols and internal control procedures. While the financial plan is underway, the Company shall comply with relevant financial operation procedures on the overall financial risk management and segregation of duties at all times.

The nature and degree of significant financial risks

(1) Market risks

a. Foreign exchange rate risk:

(a) The Company is exposed to exchange rate risk arising from the sales, purchases and borrowings in currencies other than the Company’s functional currency. Functional currencies adopted by entities within the Company mainly comprise New Taiwan Dollars, Such transactions are denominated mainly in USD, EUR and GBP. To avoid a decrease in the value of assets dominated in foreign currency and volatility in future cash flows due to changes in exchange rates, the Company hedges the exchange rate risk with foreign-currency borrowings. Those financial instruments can diminish but not completely eliminate the impacts of changes in exchange rate.

(b) Exchange rate exposure and sensitivity analysis

	Amount in Foreign currency	Exchange rate	December 31, 2025
			Presented amount (NTD)	Sensitivity analysis
				Rage of variation	Effect on profit or loss	Effect on equity
(Foreign currency: Functional currency)
Financial assets
Monetary items
USD : NTD	3,647	31.43	114,618	Appreciate by 1%	1,146	-
Financial liabilities
Monetary items
USD : NTD	3,392	31.43	106,606	Appreciate by 1%	(1,066)	-
	Amount in Foreign currency	Exchange rate	Presented amount (NTD)	December 31, 2024
				Sensitivity analysis
				Rage of variation	Effect on profit or loss	Effect on equity
(Foreign currency: Functional currency)
Financial assets
Monetary items
USD : NTD	1,587	32.785	52,024	Appreciate by 1%	520	-
Financial liabilities
Monetary items
USD : NTD	844	32.785	27,273	Appreciate by 1%	(273)	-

(c) Due to the exchange rate volatility, total exchange gains and losses (including realized and unrealized) from the Company’s monetary items amounted to ($5,134) thousand and $15,547 thousand for the years ended December 31, 2025 and 2024, respectively.

b. Price risk

Since the company holds equity instrument investments, the company is exposed to the price risk of equity instruments. The company's equity instruments

invested in the balance sheet are classified as financial assets measured at FVOCI. The Company mainly invests in domestic listed and unlisted equity instruments. The price of such securities can be affected by changes in future value of those investment targets.

If the equity instrument price goes up or down by 1%. The post-tax other comprehensive income for the year 2025 and 2024 will increase or decrease by $3,626 thousand and $3,943 thousand due to the increase or decrease of the fair value of financial assets measured at FVTOCI.

c. Interest rate risk

The carrying amount of the Company’s financial assets and financial liabilities that are exposed to interest rate risk at the reporting date is stated as follows:

Item	Carrying Amount
	December 31, 2025	December 31, 2024
With fair value interest rate risk
Financial assets	$ -	$ -
Financial liabilities	(131,319)	(585,449)
Net	($131,319)	($585,449)
With cash flow interest rate risk
Financial assets	$95,155	$179,159
Financial liabilities	(2,338,632)	(3,187,494)
Net	($2,243,477)	($3,008,335)

(a) Sensitivity analysis of those with fair value interest rate risk:

The company does not classify any financial assets and liabilities with fixed interest rates as financial assets measured at fair value through other comprehensive loss periods, and does not specify derivatives (interest rate exchange) as a fair value hedge accounting model. The following hedging tools. Therefore, changes in the reported daily interest rate will not affect profit or loss and other comprehensive net profits.

(b) Sensitivity analysis of those with cash flow interest rate risk:

The interest-fluctuate instruments possessed by the Company were floating-interest assets (liabilities). Therefore the effective interest rate, as well as the future cash flows, changes along with the market movement. Every one percent increase (reduce) in the market interest will increase (decrease) the net profit by ($22,435) thousand and ($30,038) thousand for the years 2025 and 2024, respectively.

(2) Credit risk

Credit risk refers to the risk of financial loss to the Company arising from default by counterparties of financial instruments on the contract obligations. Credit risk of the Company mainly comes from receivables under operating activities and

—58—

bank deposits and other financial instruments under investing activities. Credit risks related to operation and finance risks are managed separately.

a. Credit risk related to operations:

To maintain the quality of accounts receivable, the Company has established the procedures for credit risk management with regards to its operations.

Risk assessment on individual customer includes factors that could affect the customer's ability to pay, such as the customer's financial status, the Company's internal credit ratings, historical transactions and current economic conditions.

b. Financial credit risk

The credit risks of bank deposits and other Financial instruments are measured and monitored by the Company's financial departments. The Company does not expect significant credit risk because the counterparties are creditworthy and investment-graded financial institutions, companies and government agencies without any significant default concerns. In addition, the Company does not have any debt instrument investments that are either measured at amortized cost, or at FVTOCI.

(A) Credit concentration risk

As of December 31, 2025 and 2024, the top ten clients accounted for 54.62% and 78.84% of the Company's accounts receivable, indicating a credit concentration risk. However, no significant credit concentration risk was shown from the remaining accounts receivables.

(B) Measurement of expected credit impairment loss

(a) Accounts receivables and contract assets apply the simplified approach. Please refer to Note 6.4 for details.

(b) Indications for determining whether the credit risk is increased significantly: None (the Company does not have any debt instrument investments that are either measured at amortized cost, or at FVTOCI).

The following table shows the maximum exposure to credit risk regarding financial assets recognized in the balance sheets, pledged collateral, master netting arrangements and other credit enhancement held by the Company:

December 31, 2025	Carrying Amount	Decreased amount of maximum exposure to credit risks
		Collateral	Net Settlement Agreement	Other Credit Enhancement	Total
Credit-impaired financial instruments to which impairment requirements of IFRS9 are applicable	$ -	$ -	$ -	$ -	$ -
Financial instruments to which the impairment requirements of IFRS 9 are not applicable :
Financial assets measured at FVTOCI	362,562	-	-	-	-
Total	$362,562	$ -	$ -	$ -	$ -

December 31, 2024	Carrying Amount	Decreased amount of maximum exposure to credit risks
		Collateral	Net Settlement Agreement	Other Credit Enhancement	Total
Credit-impaired financial instruments to which impairment requirements of IFRS9 are applicable	$ -	$ -	$ -	$ -	$ -
Financial instruments to which the impairment requirements of IFRS 9 are not applicable :
Financial assets measured at FVTOCI	394,346	-	-	-	-
Total	$394,346	$ -	$ -	$ -	$ -

(3) Liquidity risk

a. Liquidity risk management:

The company's object in managing liquidity risk is to maintain a sufficient level of cash and cash equivalent, highly-liquid marketable securities and for daily operation in order to ensure the financial flexibility of the Company.

b. Maturity analysis of financial liabilities:

The table below shows an analysis of the financial liabilities held by the Company with defined repayment terms based on maturity dates and undiscounted payment at maturity:

Non-derivative financial Liabilities	December 31, 2025
	Within 6 months	7-12 months	1-2 years	2-5 years	Over 5 years	Contractual cash flows	Carrying amount
Short-term loans	$429,678	$ -	$ -	$ -	$ -	$429,678	$429,678
Short-term notes and bills payable	100,000	-	-	-	-	100,000	99,939
Notes payable	93,447	-	-	-	-	93,447	93,477
Accounts payable	378,179	-	-	-	-	378,179	378,179
Other payables	296,008	-	-	-	-	296,008	296,008
Lease Liabilities	3,000	3,000	6,000	18,000	4,000	34,000	31,380
Long-term loans (including current portion)	99,474	171,615	424,710	1,123,068	90,972	1,909,839	1,908,954
Guarantee deposits	-	-	-	-	1,020	1,020	1,020
Total	$1,399,786	$174,615	$430,710	$1,141,068	$95,992	$3,242,171	$3,238,605

Further information on the maturity analysis of lease liabilities was as follows:

	Less than 1 year	1-5 years	5-10 years	10-15 years	15-20 years	Over 20 years	Total undiscounted lease payments
Lease liabilities	$6,000	$24,000	$4,000	$ -	$ -	$ -	$34,000

December 31, 2024

Non-derivative financial Liability	Within 6 months	7-12 months	1-2 years	2-5 years	Over 5 years	Contractual cash flows	Carrying amount
Short-term loans	$1,193,183	$ -	$ -	$ -	$ -	$1,193,183	$1,193,183
Short-term notes and bills payable	550,000	-	-	-	-	550,000	549,035
Notes payable	142,530	-	-	-	-	142,530	142,530
Accounts payable	485,761	-	-	-	-	485,761	485,761
Other payables	402,735	-	-	-	-	402,735	402,735
Lease Liabilities	3,000	3,000	6,000	18,000	10,000	40,000	36,414
Long-term loans (including current portion)	96,084	96,199	238,038	1,343,956	223,189	1,997,466	1,994,311
Guarantee deposits	-	-	-	-	1,020	1,020	1,020
Total	$2,873,293	$99,199	$244,038	$1,361,956	$234,209	$4,812,695	$4,804,989

Further information for lease liabilities with repayment periods was as follows:

Item	Within 1 year	1-5 years	5-10 years	10-15 years	15-20 years	Over 20 years	Undiscounted payments
Lease liabilities	$6,000	$24,000	$10,000	$ -	$ -	$ -	$40,000

The Company does not expect a maturity analysis of which the cash flows timing would be significantly earlier, or the actual amount would be significantly different.

B. Types of Financial instruments

	December 31
	2025	2024
Financial assets
Financial assets measured at amortized cost
Cash and cash equivalents	$90,495	$140,444
Notes receivable and accounts receivable	874,130	592,092
Other receivables	2,373	8,605
Other financial assets - current	5,073	39,527
Refundable deposits	3,412	1,555
Financial assets at fair value through other comprehensive income or loss - noncurrent	362,562	394,346
Financial liabilities
Financial liabilities measured at amortized costs
Short-term loans	429,678	1,193,183
Short-term notes and bills payable	99,939	549,035
Notes payable and accounts payable (including related parties)	471,626	628,291
Other payables	296,008	402,735
Long-term liabilities-current portion	270,963	191,979
Long-term liabilities	1,637,991	1,802,332
Lease liabilities (including current portion)	31,380	36,414

Deposits received
1020
1,020
Financial liabilities at fair value through
profit or loss – current
1,455

(3) Fair value information:

A. For information on fair value of financial assets and financial liabilities not measured at fair value, please refer to Note 12.(3).C

B. Definition of the three levels in fair value:

Level 1:

Quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Company’s investment in listed stocks is included in Level 1.

Level 2

Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Most of derivative instruments that the Company invested is included in Level 2.

Level 3

Unobservable inputs for the asset or liability. The fair value of the Company’s investment in some derivative instruments and equity investment without active market is included in Level 3.

C. Financial instruments not measured at fair value

Management of the Company thinks that the carrying amount of financial instruments not measured at fair value, including cash and cash equivalents, accounts receivable, other financial assets, refundable deposits, short term loans, notes payable and, notes receivables and accounts payable, lease liabilities (including current and non-current), long-term loans (including current portion), and guarantee deposits is the reasonable approximation of their fair value.

D. Fair value hierarchy:

The fair value hierarchy of financial instrument is measured at fair value on a recurring basis. Information about the Company’s fair value hierarchy was disclosed in the following table:

Item	December 31, 2025
	Level 1	Level 2	Level 3	Total
Assets:
Recurring fair value
Financial assets measured at FVTOCI
Domestic listed stocks	$355,254	$-	$-	$355,254
Domestic unlisted stocks	-	-	7,308	7,308
Total	$355,254	$-	$7,308	$362,562

Item	December 31, 2025
	Level 1	Level 2	Level 3	Total
Liabilities:
Recurring fair value
Financial liabilities at FVTPL
Derivative financial instruments	$-	$1,455	$-	$1,455
Total	$-	$1,455	$-	$1,455
Item	December 31, 2024
---	---	---	---	---
	Level 1	Level 2	Level 3	Total
Assets:
Recurring fair value
Financial assets measured at FVTOCI
Domestic listed stocks	$385,417	$-	$-	$385,417
Domestic unlisted stocks	-	-	8,929	8,929
Total	$385,417	$-	$8,929	$394,346

E. Fair value valuation technique for instruments measured at fair value:

The fair value of financial instruments with quoted prices in active markets is the quoted market prices. Market prices published by major trading centers and exchanges for on-the-run government bonds are the basis for the fair value of listed equity instruments and debt instruments with quoted prices in active markets. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm's length basis. If one of the conditions fails, the market is not deemed active. In general, indications of an inactive market include a wide bid-ask spread, a significant increase in the bid-ask spread and low level of trading volume. The fair value of financial instruments with active markets held by the Company are stated by their natures and types as follows:

a. Listed stocks: closing prices.

b. Except for financial assets with an active market, the fair value of other financial assets is obtained either based on the valuation technique or by reference to the quotes from counter-parties. Fair value can be obtained by using a valuation technique that refers to the fair value of financial instruments having substantially the same terms and characteristics, the discounted cash flow method, or other valuation technique e.g. the one that applies market information available on the balance sheet date to a pricing model for calculation.

The fair value of the Company's holding of unlisted stocks for which no active market exists is estimated by using the market approach, which refers to the valuation of similar entities, quoted prices from a third party, the net worth of an entity and the operating performance. Significant unobservable inputs used to

measure fair value are listed in the table below:

December 31, 2025 :

Item	Measurement technique	Major unobservable input value	interval	Relationship between input value and fair value
Financial assets at fair value through other comprehensive income or loss - stock	Market Approach	Market liquidity discount rate	30.37%	The higher the degree of lack of liquidity, the lower the fair value estimate

December 31, 2024 :

Item	Measurement technique	Major unobservable input value	interval	Relationship between input value and fair value
Financial assets at fair value through other comprehensive income or loss - stock	Market Approach	Market liquidity discount rate	29.06%	The higher the degree of lack of liquidity, the lower the fair value estimate

c. Outputs from the valuation models are estimates and valuation techniques may not be able to reflect all relevant factors of the financial and non-financial instruments held by the Company. Therefore, when needed, estimates from the valuation model would be adjusted based on additional parameters, e.g. model risk or liquidity risk. According to the Company's policies of fair value valuation management and relevant control procedures, the Company's management considers that valuation adjustments as being necessary and appropriate for a fair and just presentation of financial and non-financial instruments on the standalone balance sheet. Every price data and parameters used in the valuation is reviewed thoroughly and adjusted for current market conditions.

d. The Company incorporates the adjustment of credit risk assessment into the fair value measurement of financial and non-financial instruments to reflect the credit risk of counter-party and the credit quality of the Company.

F. Transfers between Level 1 and Level 2 fair value hierarchy: None.

G. Statement of changes in Level 3 fair value hierarchy-Financial assets measured at FVTOCI-unlisted stocks

Item	Investment in unquoted financial instruments
	2025	2024
January 1	$8,929	$6,032
Proceeds from capital reduction	-	-
Recognized in other comprehensive income	(1,621)	2,897
December 31	$7,308	$8,929

H. Valuation process for Level 3 fair value measurement:

Valuation process regarding fair value Level 3 is conducted by the independence of fair value of financial instruments is verified though use of independent data source in

order to make the valuation results close to market conditions. Such valuation results are regularly reviewed so as to ensure their reasonableness.

(4) Transfer of financial assets: None.
(5) Offsetting financial assets and financial liabilities: None.

13. SUPPLEMENTARY DISCLOSURES

A. Significant transactions information

(a) Financings provided: None.
(b) Endorsements and guarantees provided to others: None.
(c) Material securities held at the end of the period: Table 1.
(d) Total purchases from or sales to related parties of at least NT$100 million or 20% of the paid-in capital: Table 2.
(e) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: None.

B. Information on investees: None.
C. Information on investment in Mainland China: None.

– 65 –

Table 1

Wei Chih Steel Industrial Co., Ltd.

Material securities held at the end of the period

December 31, 2025

(Amounts in Thousands of New Taiwan Dollars)

Securities held	Marketable securities	Relationship with the securities issuer	General Ledger Account	Ending balance
				Shares (in thousands)	Carrying amount	Percentage of Ownership	Fair value
Wei Chih Steel Industrial Co., Ltd.	Stock - Xiao Gang Warehousing Co., Ltd.	-	Financial assets at fair value through other comprehensive income	733	7,308	8.15%	7,308
Wei Chih Steel Industrial Co., Ltd.	Stock- Taiwan Steel Union Co., Ltd.	-	Financial assets at fair value through other comprehensive income	3,351	355,254	3.01%	355,254

Table 2

Wei Chih Steel Industrial Co., Ltd.

Total Purchases from or Sales to Related Parties of at Least NT$100 Million or 20% of the Paid-in Capital

December 31, 2025

(Amounts in Thousands of New Taiwan Dollars)

Purchaser/ Seller	Counterparty	Relationship with the counterparty	Transaction				Differences in transaction terms compared to third party transactions		Notes/accounts receivable (payable)
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)	Note
WEI CHIH STEEL INDUSTRIAL CO., LTD.	Chien Yao Technology Co., Ltd.	The chairman of Chien Yao Technology Co., Ltd. is within the second degree of kinship of the chairman of the Company	Purchases	306,832	6.91%	Settlement at 10 Days TT 20 Days	Equivalent	The purchase prices with the related parties are equivalent to those with ordinary suppliers. Payment terms were 10 days settlement once, 20 days TT. However, both parties can agree to postpone the payments.	Accounts payable 17,617	4.66%

14. SEGMENT INFORMATION

(1) Segment Financial Information:

The Company operates single industry only, mainly for the steel processing and manufacturing of steel rebar, bar steels, billes steel, and wire rods. The end uses of the products are similar, and the operating decision maker of the Company assesses the overall performance and resource allocation. It is identified that the Company has only a single reporting segment.

(2) Geographical Information:

A. Revenue from external customers (classified by the countries where the customers are located):

Area	Year ended December 31
	2025	2024
Taiwan	$7,604,481	$9,652,684
Australia	909,055	543,448
Total	$8,513,536	$10,196,132

B. Noncurrent Assets:

Area	December 31
	2025	2024
Taiwan	$4,174,938	$4,260,580

(3) Major customer information:

Customer	Year ended December 31, 2025
	Amount	Percentage of Net Sale (%)
A Customer	$742,373	8.72%
B Customer	617,767	7.26%
C Customer	909,055	10.68%
Customer	Year ended December 31, 2024
---	---	---
	Amount	Percentage of Net Sale (%)
A Customer	$1,313,085	12.88%
B Customer	1,225,651	12.02%

STATEMENTS OF MAJOR ACCOUNTING ITEMS
CONTENTS

Item	Statement Index
Major accounting items in assets, liabilities and equity
Statement of cash and cash equivalents	71
Statement of notes receivable	72
Statement of accounts receivable	73
Statement of other receivables	74
Statement of inventories	75
Statement of prepayments	Note 6.6
Statement of other financial assets - current	76
Statement of changes in financial assets at fair value through other comprehensive income - noncurrent	77
Statement of changes in property, plant and equipment	Note 6.8
Statement of changes in accumulated depreciation of property, plant and equipment	Note 6.8
Statement of changes in accumulated impairment of property, plant and equipment	Note 6.8
Statement of changes in right-of-use assets	Note 6.9
Statement of changes in accumulated depreciation of right-of-use assets	Note 6.9
Statement of changes in accumulated impairment of right-of-use assets	Note 6.9
Statement of changes in investment properties	Note 6.10
Statement of changes in accumulated depreciation of investment properties	Note 6.10
Statement of changes in accumulated impairment of investment properties	Note 6.10
Statement of changes in intangible assets	Note 6.11
Statement of deferred income tax assets	Note 6.29
Statement of refundable deposits	78
Statement of short-term loans	79~80
Statement of short-term notes and bills payable	81
Statement of Financial Liabilities at Fair Value Through Profit or Loss – Current	82
Statement of contract liabilities - current	83
Statement of notes payable	84
Statement of accounts payables	85
Statement of other payables	Note 6.14
Statement of provisions - current	Note 6.15
Statement of long-term loans	86~88
Schedule of Long-term Deferred Revenue	Note 6.17
Statement of guarantee deposits received	89
Statement of net revenue	90
Statement of operating cost	91
Statement of factory overhead	92
Statement of operating expenses	93

— 69 —

Statement of finance costs	Note 6.28
Statement of labor, depreciation and amortization	Note 6.25

— 70 —

Wei Chih Steel Industrial Co., Ltd.
Statement of Cash and Cash Equivalents
December 31, 2025

In Thousands of New Taiwan Dollars and Foreign Currencies

Item	Description	Amount	Note
Cash	Foreign Currency	$ -	USD	(Note 1)
		-	EUR	(Note 2)
		1	CNY	(Note 5)
		-	KRW	3 thousand (Note 6)
		-	JPY	1 thousand (Note 3)
	New Taiwan Dollars	28
	Working fund	60
Subtotal		$89
Cash in bank	Checking accounts	$324
	Demand accounts	83,852
	foreign deposits	5,979	USD	190 thousand (Note 1)
		67	EUR	2 thousand (Note 2)
		-	JPY	1 thousand (Note 3)
		184	SGD	7 thousand (Note 4)
Subtotal		$90,406
Total		$90,495

Note 1: Exchange rate vs. USD is 1 : 31.43
Note 2: Exchange rate vs. EUR is 1 : 36.9
Note 3: Exchange rate vs. JPY is 1 : 0.2
Note 4: Exchange rate vs. SGD is 1 : 24.45
Note 5: Exchange rate vs. CNY is 1 : 4.5
Note 6: Exchange rate vs. KRW is 1 : 0.02

— 71 —

Wei Chih Steel Industrial Co., Ltd.
Statement of Notes Receivable
December 31, 2025

In Thousands of New Taiwan Dollars

Item	Description	Amount
A Company	Notes Receivable	$15,300
B Company	Notes Receivable	5,099
C Company	Notes Receivable	4,184
D Company	Notes Receivable	3,818
E Company	Notes Receivable	2,513
F Company	Notes Receivable	2,189
Others	Under 5%	6,426
Total		$39,529
Less: Loss allowance		(198)
Net		$39,331

— 72 —

Wei Chih Steel Industrial Co., Ltd.
Statement of Accounts Receivable
December 31, 2025

In Thousands of New Taiwan Dollars

Item	Description	Amount
A Company	Trade receivable	$108,618
B Company	Trade receivable	105,760
C Company	Trade receivable	96,877
D Company	Trade receivable	88,619
E Company	Trade receivable	66,162
F Company	Trade receivable	59,864
Others	Under 5%	313,094
Total		$838,994
Less: Loss allowance		(4,195)
Net		$834,799

— 73 —

Wei Chih Steel Industrial Co., Ltd.
Statement of Other Receivables
December 31, 2025

In Thousands of New Taiwan Dollars

Item	Description	Amount
Interest receivable	Interest income from live and fixed deposits	$68
Tax refunds receivable	Receivable and refund of business tax, etc.	728
Other receivables	Other	1,577
Total		$2,373

— 74 —

Wei Chih Steel Industrial Co., Ltd.
Statement of Inventories
December 31, 2025

In Thousands of New Taiwan Dollars

Item	Description	Amount
		Cost	Market price
Raw materials	Scrap steel	$412,340	$ 430,815
Supplies	Heavy oils and electrode bars etc.	397,525	397,525
Work in process	Steel billet	1,207,670	1,244,158
Finished goods	Steel rebars, bar steels and wire rods	675,888	729,768
Scraps	Iron oxide	695	695
Total		$2,694,118	$2,802,961
Less: Allowance for inventory loss		-	-
Net		$2,694,118	$2,802,961

— 75 —

Wei Chih Steel Industrial Co., Ltd.
Statement of Other Financial Assets - Current
December 31, 2025

In Thousands of New Taiwan Dollars

Item	Description	Amount	Remark
Restricted Demand Deposits	Reserve account deposits	$51
Restricted Foreign Currency Deposits	Reserve account deposits	22	USD 1 thousand (Note)
Restricted Fixed Deposits	More than 3 months fixed deposit	5,000
Total		$5,073

Note: Exchange rate vs. USD is 1 : 31.43

— 76 —

Wei Chih Steel Industrial Co., Ltd.
Statement of changes in financial assets at fair value through other comprehensive income - noncurrent
For the year ended December 31, 2025

Units: In thousand shares; In Thousands of New Taiwan Dollars

Title	Balance, January 1, 2025		Increase		Decrease		Balance, December 31, 2025
	Shares	Amount	Shares	Amount	Shares	Amount	Shares	Shareholding ratio	Amount	Collateral	Remark
Listed Company
Taiwan Steel Union Co., Ltd.	3,351	$385,417	-	$-	-	$30,163	3,351	3.01%	$355,254	None
Unlisted Company
Xiao Gang Warehousing Co., Ltd.	733	8,929	-	-	-	1,621	733	8.15%	7,308	None
Total		$394,346		$-		$31,784			$362,562

Note: Current increase of $81,322 thousand includes unrealized gain on financial assets at FVTOCI.

— 77 —

Wei Chih Steel Industrial Co., Ltd.
Statement of Refundable Deposits
December 31, 2025

In Thousands of New Taiwan Dollars

Item	Description	Amount
Refundable deposits	Official vehicles guarantee	$1,149
	Land lease deposits	37
	Other guarantee deposits	2,226
Total		$3,412

— 78 —

Wei Chih Steel Industrial Co., Ltd.
STATEMENT OF SHORT-TERM LOANS
DECEMBER 31, 2025

In Thousands of New Taiwan Dollars

Creditor	Description	Ending Balance	Contract Period	Loan Commitment	Collateral	Remark
Mega - Tainan	Loan for material purchase	$12,452	September 24, 2025~ March 23, 2026	400,000	Yes
Mega - Tainan	Loan for material purchase	13,603	September 25, 2025~ March 24, 2026	400,000	Yes
Mega - Tainan	Loan for material purchase	27,406	September 25, 2025~ March 24, 2026	400,000	Yes
Mega - Tainan	Working capital	100,000	December 22, 2025~ January 21, 2026	400,000	None
Mega - Tainan	Loan for material purchase	5,865	December 22, 2025~ June 18, 2026	USD 8,000	Yes	USD 187 thousand (Note)
Huanan Bank - Tainan	Loan for material purchase	9,180	November 04, 2025~ April 17, 2026	200,000	Yes
Huanan Bank - Tainan	Loan for material purchase	9,108	November 05, 2025~ April 17, 2026	200,000	Yes
Huanan Bank - Tainan	Loan for material purchase	9,463	November 06, 2025~ April 17, 2026	200,000	Yes
Huanan Bank - Tainan	Loan for material purchase	9,293	November 07, 2025~ April 17, 2026	200,000	Yes
Huanan Bank - Tainan	Loan for material purchase	89,660	December 12, 2025~ June 10, 2026	USD 10,000	Yes	USD 2,853 thousand (Note)
Taishin Bank - Tainan	Loan for material purchase	15,086	December 03, 2025~ January 20, 2026	150,000	Yes
Taishin Bank - Tainan	Loan for material purchase	14,560	December 03, 2025~ January 20, 2026	150,000	Yes
Taishin Bank - Tainan	Loan for material purchase	12,402	December 03, 2025~ January 20, 2026	150,000	Yes
Taishin Bank - Tainan	Loan for material purchase	9,793	December 04, 2025~ January 20, 2026	150,000	Yes
Taishin Bank - Tainan	Loan for material purchase	8,367	December 09, 2025~ January 20, 2026	150,000	Yes
China CITIC Bank - Tainan	Working capital	50,000	October 21, 2025~ April 21, 2026	100,000	Yes

— 79 —

Creditor	Description	Ending Balance	Contract Period	Loan Commitment	Collateral
Wingfung Bank - Tainan	Loan for material purchase	14,550	October 27, 2025~ April 24, 2026	100,000	None
Wingfung Bank - Tainan	Loan for material purchase	10,708	October 27, 2025~ April 24, 2026	100,000	Yes
Wingfung Bank - Tainan	Loan for material purchase	8,182	October 29, 2025~ April 24, 2026	100,000	Yes
Total		$429,678
Range of Interest Rates (%)		1.98%-5.98%

Note: Exchange rate vs. USD is 1 : 31.43

— 80 —

Wei Chih Steel Industrial Co., Ltd.
STATEMENT OF SHORT-TERM NOTES AND BILLS PAYABLE
DECEMBER 31, 2025

In Thousands of New Taiwan Dollars

Item	Creditor	Contract Period	Issued Amount	Discount	Book Value
Commercial Paper	China Bills Finance Corporation	December 12, 2025~ January 12, 2026	$50,000	($35)	$ 49,965
Commercial Paper	Ta Ching Bills Finance Corporation	December 11, 2025~ January 09, 2026	50,000	(26)	49,974
Total			$100,000	($61)	$99,939
Range of Interest Rates					1.50%-1.77%

81 -

Wei Chih Steel Industrial Co., Ltd.
STATEMENT OF FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS – CURRENT
DECEMBER 31, 2025

Name of Financial Instrument	Description	Number of Shares or Units	Acquisition Cost	Fair Value		Remark
				Unit Price	Total Amount
Forward Foreign Exchange Contract	USD/TWD	USD9,320	$-		$1,455	Contract Maturity Date: February 2026 – March 2026
Execution Exchange Rate: 30.924~31.320

– 82 –

Wei Chih Steel Industrial Co., Ltd.
STATEMENT OF CONTRACT LIABILITIES - CURRENT
DECEMBER 31, 2025

In Thousands of New Taiwan Dollars

Client Name	Description	Amount
Company A	Unearned sales revenue	$ 76,956
Company B	Unearned sales revenue	36,377
Company C	Unearned sales revenue	34,606
Company D	Unearned sales revenue	33,157
Company E	Unearned sales revenue	32,643
Company F	Unearned sales revenue	22,159
Company G	Unearned sales revenue	16,915
Others	Under 5%	54,095
Total		$ 306,908

— 83 —

Wei Chih Steel Industrial Co., Ltd.
Statement of Notes Payable
December 31, 2025

In Thousands of New Taiwan Dollars

Item	Description	Amount
Unrelated parties
Company A	Trade payable	$6,882
Company B	Trade payable	6,189
Company C	Trade payable	5,545
Company D	Trade payable	4,801
Company E	Trade payable	4,765
Others	Under 5%	65,265
Total		$93,447

— 84 —

Wei Chih Steel Industrial Co., Ltd.
Statement of Accounts Payable
December 31, 2025

In Thousands of New Taiwan Dollars

Item	Description	Amount
Unrelated parties
Company A	Trade payable	$35,444
Company B	Trade payable	27,934
Company C	Trade payable	25,731
Others	Under 5%	271,453
Subtotal		$360,562
Related parties
Chien Yao Technology Co., Ltd.	Trade payable	$17,617
Subtotal		$17,617
Total		$378,179

— 85 —

Wei Chih Steel Industrial Co., Ltd.
Statement of Long-Term Loans And Current Portion of Long-Term Loans
December 31, 2025
In Thousands of New Taiwan Dollars

Creditors	Description	Ending balance	Contract Term (mm/dd/yy)	Mortgage or Guarantee
Mega - Tainan	Secured loan	$628,050	July 26, 2023-July 26, 2028	Land and plant
Accelerate investment project loans for Taiwanese enterprises (Land Bank of Taiwan)	Credit loan	33,743	June 06, 2023-May 15, 2028	None
Accelerate investment project loans for Taiwanese enterprises (Land Bank of Taiwan)	Credit loan	25,782	June 14, 2023-May 15, 2028	None
Accelerate investment project loans for Taiwanese enterprises (Land Bank of Taiwan)	Credit loan	39,952	June 26, 2023-May 15, 2028	None
Accelerate investment project loans for Taiwanese enterprises (Land Bank of Taiwan)	Credit loan	34,401	July 04, 2023-May 15, 2030	None
Accelerate investment project loans for Taiwanese enterprises (Taipei Fubon Bank)	Secured loan	1,532	August 15, 2023-August 15, 2030	Machinery and equipment
Accelerate investment project loans for Taiwanese enterprises (Taipei Fubon Bank)	Secured loan	2,520	August 15, 2023-August 15, 2030	Machinery and equipment
Accelerate investment project loans for Taiwanese enterprises (Taipei Fubon Bank)	Credit loan	4,234	August 17, 2023-August 15, 2030	None
Accelerate investment project loans for Taiwanese enterprises (Taipei Fubon Bank)	Secured loan	2,500	December 11, 2023-August 15, 2030	Machinery and equipment
Accelerate investment project loans for Taiwanese enterprises (Taipei Fubon Bank)	Secured loan	1,100	December 11, 2023-August 15, 2030	Machinery and equipment
Accelerate investment project loans for Taiwanese enterprises (Taipei Fubon Bank)	Credit loan	1,700	December 11, 2023-August 15, 2030	None
Accelerate investment project loans for Taiwanese enterprises (Taipei Fubon Bank)	Credit loan	2,600	December 11, 2023-August 15, 2030	None
Accelerate investment project loans for Taiwanese enterprises (Taipei Fubon Bank)	Secured loan	73,000	December 21, 2023-August 15, 2030	Machinery and equipment
Accelerate investment project loans for Taiwanese enterprises (Taipei Fubon Bank)	Secured loan	28,000	January 31,2024-August 15, 2030	Machinery and equipment
Accelerate investment project loans for Taiwanese enterprises (Taipei Fubon Bank)	Credit loan	16,000	January 31,2024-August 15, 2030	None
Accelerate investment project loans for Taiwanese enterprises (Taipei Fubon Bank)	Secured loan	14,350	May 31,2024-August 15, 2030	Machinery and equipment

—86—

Creditors	Description	Ending balance	Contract Term (mm/dd/yy)	Mortgage or Guarantee
Accelerate investment project loans for Taiwanese enterprises (Taipei Fubon Bank)	Secured loan	1,021	June 25, 2024-August 15, 2030	Machinery and equipment
Accelerate investment project loans for Taiwanese enterprises (Taipei Fubon Bank)	Secured loan	7,165	June 25, 2024-August 15, 2030	Machinery and equipment
Accelerate investment project loans for Taiwanese enterprises (Taipei Fubon Bank)	Credit loan	2,129	June 25, 2024-August 15, 2030	None
Accelerate investment project loans for Taiwanese enterprises (Taipei Fubon Bank)	Secured loan	274	June 25, 2024-August 15, 2030	Machinery and equipment
Accelerate investment project loans for Taiwanese enterprises (Taipei Fubon Bank)	Credit loan	902	June 25, 2024-August 15, 2030	None
Accelerate investment project loans for Taiwanese enterprises (Taipei Fubon Bank)	Secured loan	21,530	July 31,2024- August 15, 2030	Machinery and equipment
Accelerate investment project loans for Taiwanese enterprises (Taipei Fubon Bank)	Credit loan	14,350	January 02,2025- August 15, 2030	None
Accelerate investment project loans for Taiwanese enterprises (Taipei Fubon Bank)	Credit loan	5,400	February 02,2025- August 15, 2030	None
Accelerate investment project loans for Taiwanese enterprises (Taipei Fubon Bank)	Credit loan	2,946	July 22,2025- August 15, 2030	None
Accelerate investment project loans for Taiwanese enterprises (Taipei Fubon Bank)	Secured loan	34,334	July 22,2025- August 15, 2030	Machinery and equipment
Accelerate investment project loans for Taiwanese enterprises (First Bank)	Credit loan	200,000	June 14, 2023-May 15, 2031	None
Accelerate investment project loans for Taiwanese enterprises (First Bank)	Credit loan	40,000	June 30, 2023-June 15, 2031	None
Accelerate investment project loans for Taiwanese enterprises (First Bank)	Credit loan	10,000	September 22,2023-June 15, 2030	None
Accelerate investment project loans for Taiwanese enterprises (Mega Bank)	Secured loan	9,526	August 15,2023- August 15, 2030	Land and plant
Accelerate investment project loans for Taiwanese enterprises (Mega Bank)	Secured loan	81,978	August 15,2023- August 15, 2030	Land and plant
Accelerate investment project loans for Taiwanese enterprises (Mega Bank)	Secured loan	9,526	August 15,2023- August 15, 2030	Land and plant
Accelerate investment project loans for Taiwanese enterprises (Mega Bank)	Secured loan	6,048	August 15,2023- August 15, 2030	Land and plant
Accelerate investment project loans for Taiwanese enterprises (Mega Bank)	Secured loan	1,075	August 15,2023- August 15, 2030	Land and plant
Accelerate investment project loans for Taiwanese enterprises (Mega Bank)	Secured loan	9,261	August 15,2023- August 15, 2030	Land and plant

Creditors	Description	Ending balance	Contract Term (mm/dd/yy)	Mortgage or Guarantee
Accelerate investment project loans for Taiwanese enterprises (Mega Bank)	Secured loan	23,339	August 15,2023- August 15, 2030	Land and plant
Accelerate investment project loans for Taiwanese enterprises (Mega Bank)	Secured loan	14,490	August 15,2023- August 15, 2030	Land and plant
Accelerate investment project loans for Taiwanese enterprises (Mega Bank)	Secured loan	2,150	August 15,2023- August 15, 2030	Land and plant
Accelerate investment project loans for Taiwanese enterprises (Mega Bank)	Secured loan	24,660	August 15,2023- August 15, 2030	Land and plant
Accelerate investment project loans for Taiwanese enterprises (Mega Bank)	Secured loan	19,859	August 15,2023- August 15, 2030	Land and plant
Accelerate investment project loans for Taiwanese enterprises (Mega Bank)	Secured loan	2,319	August 15,2023- August 15, 2030	Land and plant
Accelerate investment project loans for Taiwanese enterprises (Mega Bank)	Secured loan	6,836	August 15,2023- August 15, 2030	Land and plant
Accelerate investment project loans for Taiwanese enterprises (Mega Bank)	Secured loan	7,979	August 15,2023- August 15, 2030	Land and plant
Accelerate investment project loans for Taiwanese enterprises (Mega Bank)	Secured loan	3,358	August 15,2023- August 15, 2030	Land and plant
Accelerate investment project loans for Taiwanese enterprises (Mega Bank)	Secured loan	613	August 15,2023- August 15, 2030	Land and plant
Accelerate investment project loans for Taiwanese enterprises (Chang Hwa Bank)	Credit loan	6,815	December 07, 2023-November 15, 2030	None
Accelerate investment project loans for Taiwanese enterprises (Chang Hwa Bank)	Credit loan	5,300	January 20, 2025-November 15, 2030	None
Accelerate investment project loans for Taiwanese enterprises (Chang Hwa Bank)	Credit loan	10,610	April 01, 2025- November 15, 2030	None
Accelerate investment project loans for Taiwanese enterprises (Chang Hwa Bank)	Credit loan	10,610	April 16, 2025- November 15, 2030	None
Chang Hwa Bank – North Tainan Branch	Secured loan	115,972	November 26, 2024- November 26, 2039	Land
Chang Hwa Bank – North Tainan Branch	Secured loan	288,000	November 26, 2024- May 26, 2028	Land
Subtotal		$ 1,909,839
Less: Unamortized discount		(885)
Less: Current portion of long - term loans		(270,963)
Total		$1,637,991
Range of interest rates		1.595%-2.529%

Wei Chih Steel Industrial Co., Ltd.
Statement of Guarantee Deposits Received
December 31, 2025

In Thousands of New Taiwan Dollars

Item	Description	Amount
Dust Collector’s Deposit	Dust Collector’s Deposit	$1,000
Restaurant Deposit	Restaurant Deposit	20
Total		$1,020

— 89 —

Wei Chih Steel Industrial Co., Ltd.
Statement of Net Revenue
For The Year December 31, 2025

Item	Description	In Thousands of New Taiwan Dollars
		Amount	Remark
Sales revenue:
Steel rebars	406,642 Tons	$ 7,291,534
Bar steels	38,481 Tons	848,316
Billets steels	31 Tons	646
Wire rods	17,727 Tons	398,850
Others	56 Tons	6,027
Subtotal of income		$8,545,373
Less: sale return	159 Tons	(3,517)
Less: sale discount		(28,320)
Net sales revenue		$8,513,536

— 90 —

Wei Chih Steel Industrial Co., Ltd.
Statement Of Operating Cost
For The Year Ended December 31, 2025

Item	In Thousands of New Taiwan Dollars 2025
Raw materials, beginning of the year	$840,223
Add: Raw materials purchased	3,499,811
Less: Raw materials, ending of the year	(412,340)
Raw materials sold	(447)
Raw materials used	$3,927,247
Supplies, beginning of the year	$406,158
Add: Supplies purchased	644,459
Less: Supplies, ending of the year	(397,525)
Supplies sold	(240)
Transfer to operating expenses	(120,230)
Supplies used	$532,622
Add: Direct labor	$143,740
Factory overhead	1,931,683
Production cost	$6,535,292
Work in progress, beginning of the year	2,405,966
Work in progress purchased	274,176
Add: Transfer from finished goods	7,423,759
Less: Work in progress, ending of the year	(1,207,670)
Work in Progress sold	(518)
Scraps	(2,180)
Loss from work suspension	(3,469)
Cost of finished goods	$15,425,356
Finished goods, beginning of the year	643,699
Add: Finished goods purchased	21,233
Less: Finished goods, ending of the year	(675,888)
Transfer to work in progress	(7,423,759)
Transfer to operating expenses	(543)
Loss from work suspension	(9,884)
Cost of finished goods sold	$7,980,214
Cost adjustment items :
Unallocated fixed factory overhead	182,240
Total cost of goods sold	$8,162,454
Cost of raw materials sold	447
Cost of supplies sold	240
Cost of work in progress	518
Cost of scraps sold	2,266
Loss from work suspension	13,353
Total operating cost	$8,179,278

— 91 —

Wei Chih Steel Industrial Co., Ltd.
Statement of Factory Overheads
For The Year Ended December 31, 2025
In Thousands of New Taiwan Dollars

Items	Amount
Indirect labor	$67,170
Rent	1,369
Stationery supplies	1
Freight	23,073
Postage	5
Travel	1,448
Repairs & maintenance	196,558
Utilities	982,406
Insurance	24,509
Processing-outsourced	29,289
Tax	3,250
Depreciation	372,746
Meal	8,363
Employee’s welfare	6,754
Consumables	210,704
Pensions	8,856
Overtime pays	38,842
Training	353
Miscellaneous purchase	4,028
Traffic	283
Others	133,916
Less: Unallocated fixed factory overhead	(182,240)
Total	$1,931,683

— 92 —

Wei Chih Steel Industrial Co., Ltd.
Statement of operating expenses
For the Year Ended December 31, 2025
in Thousands of New Taiwan Dollars

Item	Selling and marketing expenses	General and administrative expenses	Research and development expenses	Total
Payroll	$10,849	$46,068	$ -	$56,917
Rent	1,389	157	-	1,546
Stationery supplies	2	84	-	86
Traveling	1,001	182	-	1,183
Shipping	52,659	19	-	52,678
Postage	453	1,369	-	1,822
Repairs & maintenance	209	1,363	-	1,572
Advertising	144	613	-	757
Utilities	7	3,816	-	3,823
Insurance	1,158	7,344	-	8,502
Entertainment	618	4,849	-	5,467
Donate	-	3,662	-	3,662
Tax	-	899	-	899
Meal	295	754	-	1,049
Employee’s welfare	349	1,048	-	1,397
Commission expense	2,536	-	-	2,536
Labor cost	45	3,095	-	3,140
Overtime pay	201	1,622	-	1,823
Pension	403	1,567	-	1,970
Traffic	100	217	-	317
Export	16,645	-	-	16,645
Newspapers & Magazines	13	382	-	395
Training fee	-	52		52
Others	2629	13,793	-	16,422
Depreciation	-	8,568	-	8,568
Amortizations	-	406	-	406
Miscellaneous equipment	2	493	-	495
Total	$91,707	$102,422	$ -	$194,129

— 93 —

AI assistant

WEI CHIH — Audit Report / Information 2025

51954_rns_2026-05-15_601c87db-7051-4baa-a2ff-53088e2fc8ef.pdf

Independent Auditors’ Report

Opinion

Basis for Opinion

Key Audit Matters

Authenticity of sales revenue

Description of key audit matter

How the matter was addressed in our audit:

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

Auditors' Responsibilities for the Audit of the Financial Statements

Notice to Readers

1. GENERAL INFORMATION

2. THE AUTHORIZATION OF THE FINANCIAL STATEMENTS

3. APPLICATION OF NEW AND AMENDED STANDARDS AND INTERPRETATIONS

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

4.1 Statement of Compliance

4.2 Basis of preparation

4.3 Foreign Currencies

4.4 Classification of current and non-current items

4.5 Cash and cash equivalents

4.6 Financial instruments

4.9 Leases

Lease liability

4.10 Investment properties

4.11 Intangible assets

4.12 Impairment of non-financial assets

4.13 Provisions

4.14 Employee benefits

4.17 Revenue Recognition

4.18 Borrowing Costs

5. CRITICAL ACCOUNTING JUDGEMENTS AND MAJOR SOURCES OF ESTIMATION AND ASSUMPTION UNCERTAINTY

5.1 Critical judgements in applying accounting policies

6. DESCRIPTION OF SIGNIFICANT ACCOUNTS

6.1 Cash and cash equivalents

6.2 Financial instruments at fair value through profit or loss - current

6.3 Notes receivable, net

6.4 Accounts receivable, net

6.5 Inventories and costs of goods sold

6.6 Prepayments

6.9 Lease agreements

6.10 Investment properties

6.11 Intangible Assets

6.12 Short-term loans

6.13 Short-term notes and bills payable

6.14 Other payables

6.15 Provisions - current

6.16 Long-term loans and current portion

6.17 Long-term deferred revenue

6.18 Pension

6.19 Share capital

6.20 Retained earnings and dividend policy

6.21 Other Equity Items

6.22 Treasury stock

6.23 Operating Revenue

6.25 Interest income

6.26 Other income

6.27 Other gains and losses

6.28 Finance costs

6.29 Income tax

6.30 Other comprehensive income (loss)

6.31 Earnings per share

7. RELATED PARTY TRANSACTIONS

7.1 Parent and ultimate controller:

7.2 Related party name and category:

7.3 Significant transactions with related parties:

8. PLEDGED ASSETS

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

(3) Liquidity risk

(3) Fair value information:

13. SUPPLEMENTARY DISCLOSURES

14. SEGMENT INFORMATION

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WEI CHIH Audit Report / Information 2025