YC — Audit Report / Information 2025

Apr 28, 2026

Stock Code: 2069

Yuen Chang Stainless Steel Co., Ltd.

Parent Company Only Financial Statements and Independent Auditor's Report 2025 and 2024

Address: 13F.-1., No. 235, Zhongzheng 4th Rd., Qianjin Dist., Kaohsiung City Tel: (07)969-5858

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§Table of Contents§

Item I. Cover Page II. Table of Contents III. Independent Auditor's Report IV. Parent Company Only Balance Sheet V. Parent Company Only Statement of Comprehensive Income VI Parent Company Only Statement of Changes in Equity VII. Parent Company Only Cash Flow Statement VIII. Notes to Parent Company Only Financial Statements (I) Corporate history (II) Dates and procedures where the financial statements were resolved (III) Applicability of newly promulgated and amended standard rules and interpretations (IV) Summary of significant accounting policies (V) Significant accounting judgments, and major sources of estimation and assumption uncertainty (VI) Explanation of important accounting titles (VII) Transactions with related parties (VIII) Assets pledged as collateral or for security (IX) Major contingent liabilities and unrecognized contractual commitments (X) Losses due to major disasters (XI) Significant subsequent events (XII) Others (XIII) Disclosures in notes 1. Information on significant transactions 2. Information on investees 3. Information on investment in the mainland China IX. Statement of important accounting titles	Page No. 1 2 3～6 7 8～9 10 11～12 13 13 13～16 16～29 29 29～51 51～52 52~53 53 - - 53~54 54 54 54~55 56～73	Notes to Financial Statements
		- - - - - - - 1 2 3 4 5 6–24 25 26 27 - - 28 29 29 29 -

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External Auditor’s Report

To: Yuen Chang Stainless Steel Co., Ltd.

Audit Opinions

We have completed our review on the Parent Company Only Balance Sheet of Yuen Chang Stainless Steel Co., Ltd. (hereinafter referred to as the “Company”) on December 31, 2025 and 2024, and Parent Company Only Statement of Comprehensive Income, Parent Company Only Statement of Changes in Equity, Parent Company Only Cash Flow Statement, and Notes to the Parent Company Only Financial Statements (including a summary of significant accounting policies) for January 1 to December 31, 2025 and 2024.

In our opinion, said parent company only financial statements in all major respects are in compliance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers. They are sufficient to adequately express the parent company only financial status of the Company as of December 31, 2025 and 2024, and its parent company only financial performance and parent company only cash flow from January 1 through December 31, 2025 and 2024.

Basis for the Audit Opinions

We are entrusted to conduct our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statements section of the report. We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions, based on our audit results and the other external auditors’ report.

Key Audit Matters

Key audit matters refer to the most important matters for the audit of the 2025 parent company only financial statements of the Company based on our professional judgment. These matters were addressed in the context of our audit of the parent company only financial statements as a whole,

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

Key audit matters of 2025 parent company only financial statements of the Company and its subsidiaries are hereby stated as follows:

Adequacy of the deadline for sales revenue

According to the delivery terms and conditions agreed on by the Company and customers, there was a deviation between the physical shipping date and delivery date or on board date. We evaluated that revenue risk might be recognized earlier than the actual delivery or on board. Therefore, we identify the adequacy of the deadline for the sales revenue close to the balance sheet date as the key audit matters.

Meanwhile, we also perform the following primary audit procedures:

• I. Test the internal control related to adequacy of the deadline for recognition of the revenue. II. Perform random checks on customer orders, shipping bills and sales invoices from the statement of operating revenue to identify whether the buyers identified in the customers’ orders and sales invoices are identical, and whether the sales invoice amount is consistent with the recognized revenue. Perform random checks on the external shipping certificates from the statement of operating revenue dated close to the balance sheet date, in order to confirm that the sales revenue is recognized within adequate accounting period.

Responsibilities of the management and governing body to the parent company only financial statements

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

In preparing the parent company only financial statements, the management is responsible for assessing the ability of the Company to continue operations, disclosing related matters, as well as continuing operations with the basis of accounting, unless the management either intends to liquidate the Company or to cease operations, or has no feasible alternative but to do so.

Those charged with governance (including Audit Committee) are responsible for overseeing the financial reporting process of the Company.

External Auditors’ Responsibilities for the Audit on Parent Company Only Financial Statements

Our objectives are to obtain reasonable assurance about whether the parent company only

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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 will always detect a material misstatement in the parent company only financial statements 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 the parent company only financial statements.

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

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

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

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

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

• V. Evaluate the overall presentation, structure, and contents of the parent company only financial statements, including the related notes, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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• VI. Obtain sufficient and appropriate audit evidence regarding the financial information of entities within the Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision, and performance of the audit. We remain solely responsible for our audit opinion on the Company.

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 under the Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and to communicate with them all relationships and other matters that may reasonably be considered affecting our independence, and where applicable, other matters (including related safeguards).

From the matters communicated with the governance unit, we have determined key audit matters of 2025 parent company only financial statements of the Company. 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.

Deloitte Taiwan

CPA: Hsu Kai-Ning CPA: Chang Tzu-Yuan

Approval reference of the Financial Approval reference of the Financial Supervisory Commission Supervisory Commission Jin-Guan-Zheng-Shen-Zi No. 1090347472 Jin-Guan-Zheng-Shen-Zi No. 1120349008

March 10, 2026

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Yuen Chang Stainless Steel Co., Ltd. Parent Company Only Balance Sheet December 31, 2025 and 2024

Unit: NT$ Thousand

Code 1100 1150 1170 1200 1220 1310 1410 1476 1479 11XX 1550 1600 1755 1760 1840 1915 1980 1990 15XX 1XXX Code 2100 2110 2130 2150 2170 2219 2230 2280 2322 2399 21XX 2540 2570 2645 25XX 2XXX 3100 3200 3310 3320 3350 3300 3400 3XXX 3X2X	Assets Current assets Cash and cash equivalents (Note 6) Notes receivable (Notes 7 and 18) Accounts receivable (Notes 7, 18, 24, 25, and 26) Other receivables (Note 24) Current income tax assets (Note 20) Inventory (Note 8) Prepayments Other financial assets – current (Notes 9 and 26) Other current assets Total current assets Non-current assets Investments under equity method (Note 10) Property, plant and equipment (Notes 11, 19, and 26) Right-of-use assets (Notes 12 and 19) Investment property (Notes 13 and 26) Deferred income tax assets (Note 20) Prepayments for equipment and engineering Other financial assets – non-current (Notes 9 and 26) Other non-current assets Total non-current assets Total assets Liabilities and equity Current liabilities Short-term loans (Notes 14 and 26) Short-term notes and bills payable (Note 14) Contract liabilities – current (Note 18) Notes payable Accounts payable (Note 25) Other payables (Note 15) Current income tax liabilities (Note 20) Lease liabilities – current (Note 12) Long-term loans – current portion (Notes 14 and 26) Other current liabilities Total current liabilities Non-current liabilities Long-term loans (Notes 14 and 26) Deferred income tax liabilities (Note 20) Deposit received Total non-current liabilities Total liabilities Equity (Note 17) Ordinary share capital Capital surplus Retained earnings Legal reserve Special reserve Undistributed earnings Total retained earnings Other equity Total equity Total liabilities and equity		December 31,2025 Amount % $ 23,987 - - - 219,555 3 143,573 2 11,993 - 1,554,107 23 33,984 1 200,100 3 2,763 - 2,190,062 32 3,035,082 45 1,090,593 16 - - 36,453 1 75,759 1 42,471 1 287,000 4 2,670 - 4,570,028 68 $ 6,760,090 100 $ 1,078,022 16 360,000 5 97,162 2 7,451 - 5,453 - 87,256 1 - - - - 60,000 1 4,144 - 1,699,488 25 872,319 13 15,187 - 13,464 - 900,970 13 2,600,458 38 1,663,868 25 1,243,130 18 338,045 5 134,296 2 878,543 13 1,350,884 20 98,250) ( 1) 4,159,632 62 $ 6,760,090 100	December 31,2025 Amount % $ 23,987 - - - 219,555 3 143,573 2 11,993 - 1,554,107 23 33,984 1 200,100 3 2,763 - 2,190,062 32 3,035,082 45 1,090,593 16 - - 36,453 1 75,759 1 42,471 1 287,000 4 2,670 - 4,570,028 68 $ 6,760,090 100 $ 1,078,022 16 360,000 5 97,162 2 7,451 - 5,453 - 87,256 1 - - - - 60,000 1 4,144 - 1,699,488 25 872,319 13 15,187 - 13,464 - 900,970 13 2,600,458 38 1,663,868 25 1,243,130 18 338,045 5 134,296 2 878,543 13 1,350,884 20 98,250) ( 1) 4,159,632 62 $ 6,760,090 100		December 31,2024	December 31,2024	December 31,2024
			Amount $ 23,987 - 219,555 143,573 11,993 1,554,107 33,984 200,100 2,763 2,190,062 3,035,082 1,090,593 - 36,453 75,759 42,471 287,000 2,670 4,570,028 $ 6,760,090 $ 1,078,022 360,000 97,162 7,451 5,453 87,256 - - 60,000 4,144 1,699,488 872,319 15,187 13,464 900,970 2,600,458 1,663,868 1,243,130 338,045 134,296 878,543 1,350,884 98,250) 4,159,632 $ 6,760,090			Amount $ 29,313 509 246,424 100,644 - 2,177,513 79,424 122,000 1,364 2,757,191 2,678,760 1,131,079 29 45,380 62,322 330 - 257 3,918,157 $ 6,675,348 $ 1,427,740 360,000 163,168 7,948 6,393 85,481 8,338 29 - 4,437 2,063,534 579,251 15,532 13,464 608,247 2,671,781 1,663,868 1,243,130 315,505 217,768 697,592 1,230,865 134,296) 4,003,567 $ 6,675,348		%
		(		(	(		(	- - 4 1 - 33 1 2 - 41 40 17 - 1 1 - - - 59 100 21 6 3 - - 1 - - - - 31 9 - - 9 40 25 19 5 3 10 18 2) 60 100

The accompanying notes shall constitute an integral part of the parent company only financial statements. (Please refer to the audit report issued by Deloitte Taiwan on March 10, 2026.) General Manager: Yen Te-Ho

Chairman: Yen Te-Ho

Accounting Manager: Chu Pei-Chen

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Yuen Chang Stainless Steel Co., Ltd. Parent Company Only Statement of Comprehensive Income January 1 to December 31, 2025 and 2024

Unit: NTD thousand, except for EPS (NTD)

Code 4000 Net operating revenue (Notes 18 and 25) 5000 Operating costs (Notes 8 and 19) 5900 Gross profit Operating expenses (Note 19) 6100 Selling expenses 6200 Administrative expenses 6300 R&D expenses 6000 Total operating expenses 6900 Net operating profit (loss) Non-operating revenue and expenses 7100 Interest income (Note 19) 7010 Other revenue (Note 19) 7020 Other gains and losses (Notes 19 and 25) 7050 Financial costs (Note 19) 7070 Share of profit or loss of subsidiaries accounted for using equity method (Note 10) 7000 Total non-operating revenue and expenses 7900 Profit before tax 7950 Income tax expenses (gains) (Note 20) 8200 Net income		2025

(Continued)

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(Brought Forward)

(Brought Forward)
Code Other comprehensive income 8360 Items that might be reclassified to profit and loss 8380 Share of other comprehensive income of subsidiaries accounted for using equity method 8300 Other comprehensive income for the current year 8500 Total comprehensive income for the current year Earnings per share (Note 21) 9750 Basic earnings per share 9850 Diluted earnings per share		2025		% - - 4		2024
		Amount $ 36,046 36,046 $ 305,813 $ 1.62 $ 1.62				Amount $ 83,471 83,471 $ 308,869 $ 1.35 $ 1.35		%
								1 1 4

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

(Please refer to the audit report issued by Deloitte Taiwan on March 10, 2026.)

Chairman: General Manager:

Yen Te-Ho

Yen Te-Ho

Accounting Manager: Chu Pei-Chen

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Yuen Chang Stainless Steel Co., Ltd.

Parent Company Only Statement of Changes in Equity January 1 to December 31, 2025 and 2024

Unit: NT$ Thousand

Code A1 Balance on January 1, 2024 2023 Appropriation and distribution of retained earnings (Note 17) B3 Special reserve C15 Cash dividends allocated from capital surplus (Note 17) D1 Profit 2024 D3 2024 Other comprehensive income after tax D5 2024 Total comprehensive income Z1 Balance on December 31, 2024 2024 Appropriation and distribution of retained earnings (Note 17) B1 Legal reserve B5 Cash dividends to the Company’s shareholders B17 Reversal of special reserve D1 Profit 2025 D3 2025 Other comprehensive income after tax D5 2025 Total comprehensive income Z1 Balance on December 31, 2025	Share capital $ 1,663,868 - - - - - 1,663,868 - - - - - - - $ 1,663,868	Capital surplus $ 1,326,323 - ( 83,193) - - - 1,243,130 - - - - - - - $ 1,243,130		Retained	earnings
			Legal reserve $ 315,505 - - - - - 315,505 22,540 - - 22,540 - - - $ 338,045	Special reserve $ 152,537 65,231 - - - - 217,768 - - ( 83,472) ( 83,472) - - - $ 134,296	Undistributed earnings $ 537,425 ( 65,231) - 225,398 - 225,398 697,592 ( 22,540 ) ( 149,748 ) 83,472 ( 88,816) 269,767 - 269,767 $ 878,543
		(		( (

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

(Please refer to the audit report issued by Deloitte Taiwan on March 10, 2026.)

General Manager: Yen Te-Ho

Accounting Manager: Chu Pei-Chen

Chairman: Yen Te-Ho

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Yuen Chang Stainless Steel Co., Ltd.

Parent Company Only Cash Flow Statement January 1 to December 31, 2025 and 2024

Unit: NT$ Thousand

Code Cash flow from operating activities A10000 Profit before tax for the current year A20010 Adjustments to reconcile profit (loss) A20100 Depreciation expenses A20400 Net gains from financial assets and liabilities at fair value through profit or loss A20900 Financial costs A21200 Interest revenue A22400 Share of profit or loss of subsidiaries accounted for using equity method A22500 Loss on disposal of property, plant and equipment A22700 Gain on disposal of investment property A29900 Other items A30000 Net changes in operating assets and liabilities A31130 Notes receivable A31150 Accounts receivable A31180 Other receivables A31200 Inventories A31230 Prepayments A31240 Other current assets A32125 Contract liabilities – current A32130 Notes payable A32150 Accounts payable A32180 Other payables A32990 Other business liabilities A33000 Cash inflow (outflow) from operating activities A33100 Interest collected A33300 Interest paid A33500 Income tax paid AAAA Net cash inflow (outflow) from operating activities Cash flow from investing activities B02700 Acquisition of property, plant and equipment B02800 Proceeds from disposal of property, plant and equipment B05500 Proceeds from disposal of investment property	2025 $ 249,137 57,059 - 64,012 ( 7,315 ) ( 320,276 ) 424 ( 18,819 ) - 509 26,869 ( 42,627 ) 668,846 - ( 1,399 ) ( 66,006 ) ( 497 ) ( 940 ) ( 880 ) ( 293) 607,804 7,013 ( 63,205 ) ( 13,483) 538,129 ( 60,500 ) 4,457 27,746	2024
		$ 242,194 53,450 ( 118 ) 54,402 ( 1,739 ) ( 164,615 ) - - ( 35 ) 135 ( 37,748 ) ( 7,271 ) ( 600,492 ) ( 63,862 ) 56 61,003 ( 8,422 ) ( 4,917 ) 12,474 749 ( 464,756 ) 1,774 ( 52,954 ) ( 1,888) ( 517,824) ( 57,358 ) - -

(Continued)

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(Brought Forward)

(Brought Forward)
Code B06500 Increase in other financial assets B06700 Decrease (increase) in other non-current assets BBBB Net cash outflow from investing activities Cash flow from financing activities C00100 Increase in short-term loans C00200 Decrease in short-term loans C00600 Decrease in short-term notes and bills payable C01300 Repayment of corporate bonds C01600 Borrowing of long-term loans C01700 Repayment of long-term loans C03000 Increase in deposit received C04020 Repayment of principal portion of lease liabilities C04500 Allocation of cash dividends CCCC Net cash inflow (outflow) from financing activities EEEE Net decrease in cash and cash equivalents for the current year E00100 Balance of cash and cash equivalents, beginning E00200 Balance of cash and cash equivalents, ending	2025 ( $ 365,100 ) ( 2,413) ( 395,810) - ( 349,718 ) - - 1,896,850 ( 1,545,000 ) - ( 29 ) ( 149,748) ( 147,645) ( 5,326 ) 29,313 $ 23,987	2024
		( $ 13,340 ) 76 ( 70,622) 681,472 - ( 10,000 ) ( 2,400 ) 579,800 ( 600,000 ) 3,416 ( 113 ) ( 83,193) 568,982 ( 19,464 ) 48,777 $ 29,313

The accompanying notes shall constitute an integral part of the parent company only financial statements. (Please refer to the audit report issued by Deloitte Taiwan on March 10, 2026.)

Chairman: Yen Te-Ho

General Manager: Yen Te-Ho

Accounting Manager: Chu Pei-Chen

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Yuen Chang Stainless Steel Co., Ltd.

Notes to Parent Company Only Financial Statements

January 1 to December 31, 2025 and 2024

(NT$ Thousand, unless otherwise specified.)

I. Company history

Yuen Chang Stainless Steel Co., Ltd. (hereinafter referred to as the “Company”) was incorporated in July 1987. The Company is primarily engaged in stainless steel shearing, splitting, surface treatment, processing and trading, and import & export of stainless steel products.

The Company has been listed on TWSE since March 22, 2016.

The parent company only financial statements are expressed in New Taiwan Dollars, the functional currency adopted by the Company.

II. Dates and procedures where the financial statements were resolved

The parent company only financial statements were approved by the Board of Directors on March 10, 2026.

III. Applicability of newly promulgated and amended standard rules and interpretations

(I) The initial adoption of the IFRS, IAS, IFRIC, and SIC approved and effective upon promulgation by the Financial Supervisory Commission (“FSC”) (hereinafter referred to as the “IFRSs” collectively).

The application of the revised FSC-approved and issued effective IFRSs will not cause significant changes to the accounting policies of the Company.

• (II) Apply the IFRSs endorsed by FSC in 2026

Effective date of promulgation by Newly promulgated/amended/revised standard International Accounting rules and interpretations Standards Board (IASB) Amendments to the IFRS 9 and IFRS 7 January 1, 2026 “Amendments to the Classification and Measurement of Financial Instruments” Amendment to IFRS 9 and IFRS 7 “Contract with January 1, 2026 Natural Power Dependence” “IFRS Annual Improvements - Volume 11” January 1, 2026 IFRS 17 “Insurance Contracts” (including 2020 January 1, 2023 and 2021 amendments)

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Until the date the parent company only financial statements were authorized for issue, the Company assessed that the amendments to said standard rules were not likely to pose any significant impact to its financial position and results of operations.

(III) New IFRSs promulgated by IASB but not yet endorsed and issued into effect by the FSC.

the FSC.
Newly promulgated/amended/revised standard rules and interpretations Amendments to IFRS 10 and IAS 28, “Sale or Contribution of Assets between an Investor and Its Associate or Joint Venture” IFRS 18 “Presentation and Disclosure in Financial Statements” IFRS 19 “Subsidiaries without Public Accountability: Disclosures” (including 2025 amendments) Amendments to IAS 21, “Translation to a Hyperinflationary Presentation Currency”	Effective Date Promulgated by IASB (Note1)
	TBD January 1, 2027 (Note 2) January 1, 2027 January 1, 2027

• Note 1: Unless otherwise expressly remarked, the aforementioned new Promulgation/Amendment/Amended Rules or Interpretation come into effect in the annual reporting year starting from the respective specified effective dates.

• Note 2: On September 25, 2025, the FSC announced that domestic enterprises should apply IFRS 18 starting January 1, 2028; enterprises may also choose early adoption after the FSC endorses IFRS 18.

IFRS 18 “Presentation and Disclosure in Financial Statements” and Related

Consequential Amendments

IFRS 18 will replace IAS 1 “Expression of Financial Statements.” The main changes include:

• The Company shall assess whether they possess specific main business activities related to investing in specific types of assets or providing financing to customers, based on which income and expense items in the income statement are categorized into operating, investing, financing, income taxes, and discontinued operations.

• The operating income and loss, income and loss before financing, as well as subtotals and total amounts of income and loss, shall be presented in the

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income statement.

• Guidance is provided to strengthen consolidation and segmentation regulations. The Company must identify assets, liabilities, equity, income, expenses, losses, and cash flows generated from individual transactions or other matters and classify and summarize them according to common characteristics. This ensures that each individual line item presented in the primary financial statements has at least one similar characteristic. The items with any characteristics other than similar ones shall be subdivided in the primary financial statements and notes. The Company only marks the items as “Others” when a more informative name cannot be found.

• Disclosure in performance measurement defined by the management is increased: When the Company makes public communication outside of financial statements and communicates with users of financial statements about the management’s views on a certain aspect of the overall financial performance of the Company, it shall disclose relevant information on performance measurement defined by the management in a single note to the financial statements, including a description of the measurement, how it is calculated, its adjustment from subtotals or aggregates specified in the IFRS Accounting Standards, and the impact of income tax and noncontrolling interests on related adjustment items.

Furthermore, the following consequential amendments were made to IAS 7 “Statement of Cash Flows”:

• When the Company prepares cash flows from operating activities using the indirect method, operating profit or loss shall be used as the starting point for reconciliation.

• Interest and dividends received by the Company shall be classified as investing activities, while interest and dividends paid shall be classified as financing activities. If the Company assesses that it possesses specific main business activities, it must consider the categories in which dividend income, interest income, and interest expense are presented in the income statement to determine the classification of dividends received, interest received, and interest paid in the statement of cash flows; however, each of the aforementioned cash flows can only be classified within a single activity in the statement of cash flows.

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Except for the aforementioned impacts, as of the date the parent company only financial statements were authorized for issue, the Company still continued to assess other impacts to be posed by the amendments to various standards and interpretations on its financial position and performance. It will disclose the relevant impact upon completion of the assessment.

IV. Summary of significant accounting policies

(I) Statement of compliance

The parent company only financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

(II) Basis of preparation

The parent company only financial statements are prepared on the basis of the historical cost.

The fair value measurements, which are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and based on the significance of the inputs to the fair value measurement in its entirety, are described as follows:

1. Level 1 inputs refer to the quoted price (unadjusted) in active markets for identical assets or liabilities, available on the measurement date;

2. Level 2 inputs refer to those that can be observed directly (i.e. price) or indirectly (i.e. established from price) for an asset or liability, other than Level 1 quoted price.

3. Level 3 inputs refer to those that can not be observed for an asset or liability. The Company treated the accounting of subsidiaries under equity method when preparing the parent company only financial statements. In order to make the current income, other comprehensive income and equity in the parent company only financial report identical with the current income, other comprehensive income and equity attributed to the owners of the Company in the Company's parent company only financial report, the certain accounting treatment differences between parent company only basis and consolidated basis were handled by adjusting the “investment under equity method,” “share of profit or loss of subsidiaries accounted for using equity method,” “share of other comprehensive income of subsidiaries accounted for using equity method,” and related equities.

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5. (III) Classification standard of current and non-current assets and liabilities

Current assets include:

1. Assets held primarily for the purpose of trading; and

2. Assets expected to be realized within 12 months after the balance sheet date.

3. Cash and cash equivalents (unless the asset is restricted from being used for an exchange or used to settle a liability for more than twelve months after the reporting period).

Current liabilities include:

1. Liabilities held primarily for the purpose of trading;

2. Liabilities due to be settled within 12 months after the balance sheet date (to be classified as current liability, even if it is later refinanced or rearranged into long-term liabilities at any time between the balance sheet date and approval and announcement date of the financial report).

3. Liabilities of which the entity on the balance sheet date does not have in substance the right to defer settlement for at least 12 months after the balance sheet date.

Assets and liabilities that are not classified as current are classified as noncurrent.

• (IV) Foreign currency

In preparing the Company's financial statements, transactions in currencies other than the Company's functional currency (i.e., foreign currencies) are recognized at the foreign exchange rates prevailing at the dates of the transactions.

At the end of each balance sheet date, monetary items denominated in foreign currencies are retranslated at the closing rates. Exchange differences on monetary items arising from settlement or translation are recognized in profit or loss in the period in which they arise.

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

When preparing the parent company only financial statements, the assets and liabilities of the foreign operations (including the subsidiaries which are operating in any countries different from the country where the Company is operating or use the currencies different from that used by the Company) are

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translated into New Taiwan dollars using exchange rates prevailing on each balance sheet date. The adjustments to reconcile profit (loss) are translated in accordance with the current average exchange rates and the exchange differences are recognized into the other comprehensive income.

(V)

Inventories

Inventories consist of raw materials, supplies, finished goods and goods in process. Inventories are stated at the lower of the cost or net realizable value. Inventory write-downs are made by item, except where it may be appropriate to group similar or related items. Net realizable value is the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. Inventories are recorded at the weighted-average cost.

(VI)

Investment in subsidiaries

The Company processed the investment in subsidiaries using the equity method.

The subsidiaries refer to the entities controlled by the Company.

Under the equity method, investment is recognized at the initial costs, which would be duly increased or decreased along with the profit and/or loss of the subsidiaries, and other shares of comprehensive income of the Company after the amounts on books are obtained later on. Additionally, the change in other equity of subsidiaries attributed to the Company are recognized pro rata to the shareholding percentages.

The unrealized gains (losses) from downstream transactions between the Company and its subsidiaries were written off in the parent company only financial statements. For the profit or loss incurred in upstream transactions between the Company and subsidiaries, the Company only recognized those within the scope irrelevant to the subsidiaries into the parent company only financial report.

(VII) Property, plant and equipment

Property, plant and equipment shall be stated at cost initially. The following evaluation is based on the cost less accumulated depreciation and accumulated impairment.

The property, plant and equipment construction in progress is recognized at cost less accumulated impairment loss. The costs included fees incurred for professional services and costs of loans, which were consistent with the

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conditions of capitalization. The assets were measured at the lower of the costs and net realizable value to the extent of being ready for use. The proceeds from sale and costs thereof were classified into the income. For those assets, depreciation started being amortized when those assets were completed to the extent of being ready for use and duly classified into the appropriate categories of property, plant and equipment.

Except that no depreciation should be provided for own land, amortization of other property, plant and equipment is recognized on a straight-line basis within the useful life thereof. The estimated useful lives, residual values, and depreciation method are reviewed at the end of each year, with the effect of any changes in accounting estimates accounted for on a prospective basis.

On derecognition of an item of property, plant, and equipment, the difference between the net proceeds from the disposal and the carrying amount of the asset is recognized into the income.

(VIII) Investment property

The investment property refers to the property held in order to earn rentals The investment property also includes the land held for purpose which has not yet been determined.

Own investment property shall be stated at cost (including trading cost) initially. The following evaluation is based on the cost less accumulated depreciation and accumulated impairment losses.

Depreciation of the investment property is provided on a straight-line basis.

On derecognition of investment property, the difference between the net proceeds from the disposal and the carrying amount of the asset is recognized into the income.

(IX) Impairment on property, plant and equipment, right-of-use assets and investment property.

The Company evaluates on each balance sheet date whether there are any signs of possible impairment on property, plant and equipment, right-of-use assets and investment property. If any such indication exists, the recoverable amount of the asset is estimated. When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. The

• 19 -

common asset is classified to each cash-generating unit in accordance with a consistent and reasonable sharing basis.

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

When an impairment loss is subsequently reversed, the carrying amount of the asset or cash-generating unit is increased to the revised estimate of its recoverable amount, but only to the extent of the carrying amount that would have been determined for the asset or cash-generating unit (net of amortization and depreciation) had no impairment loss been recognized in the previous year. A reversal of an impairment loss is recognized into the income. (X) Financial instruments

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

When recognizing the financial assets and liabilities initially, the financial assets and liabilities other than those at fair value through profit or loss shall be evaluated based on fair value, plus the transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately into the income.

1. Financial assets

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

• (1) Measurement category

The financial assets held by the Company include financial assets measured at amortized cost and accounts receivable at fair value through other comprehensive income.

• A. Financial assets measured at amortized cost

The Company's investment in financial assets which meet the following two conditions at the same time, if any, shall be classified as the financial assets measured at amortized cost:

• 20 -

• a. The financial assets are held within some business model whose objective is achieved by both holding the financial assets and collecting contractual cash flows; and

• b. The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

When recognizing the financial assets measured at amortized cost (primarily including cash and cash equivalents, accounts receivable measured at amortized cost, notes receivable, other receivables, other financial assets, and refundable deposits (listed under other non-current assets)) initially, the financial assets measured at amortized cost are measured at amortized cost, which equals to carrying amount determined by the effective interest method less any impairment loss. Any gain or loss on exchange of foreign currency is recognized into the income.

The interest revenue shall be the effective interest rate multiplying by the total carrying amount of the relevant financial asset.

Credit-impaired financial assets refers to when there is a significant financial difficulty or a breach of contract of the issuer or debtor, the debtor will enter bankruptcy or other financial reorganization, or the disappearance of an active market of the financial asset because of the financial difficulty.

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

• B. Accounts receivable at fair value through other comprehensive income

The accounts receivable of the Company that meet the following conditions at the same time are classified as the accounts receivable at fair value through other comprehensive

• 21 -

income:

• a. The financial asset is held for a specific business model, and the purpose of which involves collection of contractual cash flow and resale of the financial asset; and

• b. The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Accounts receivable at fair value through other comprehensive income are measured at fair value. In the movement of carrying amount, the foreign currency gains or losses and impairment gains or losses or gains on reversal are recognized directly in profit or loss.

• (2) Impairment of financial assets

The Company recognizes the impairment loss on financial assets measured at amortized cost (including accounts receivables) based on expected credit losses on each balance sheet date.

The allowance for loss of accounts receivables is measured at an amount equal to lifetime expected credit losses. For the other financial assets, when the credit risk thereon has not increased significantly since initial recognition, the allowance for loss is recognized at an amount equal to expected credit loss within 12 months. Otherwise, the allowance for loss shall be recognized at an amount equal to lifetime expected credit loss.

The expected credit loss refers to the weighted average credit loss based on the default risk. The expected credit loss within 12 months represents the expected credit loss on financial instruments caused by potential defaults within 12 months after the reporting date. The lifetime expected credit loss represents the expected credit loss on financial instruments caused by potential defaults within the expected lifetime of the instruments.

For the purpose of internal credit risk management, without taking into account the collaterals held by it, the Company will determine the following circumstances as a constitution of a breach of contract:

• 22 -

• A. There is internal or external information showing that the debtor is not likely to discharge the debt.

• B. Overdue for more than 90–120 days, unless some reasonable and sufficient information showing that the basis for overdue performance was fair.

• (3)

The impairment loss on all financial assets should be deducted from the carrying amount of financial assets through the account of the allowance for loss, provided that the allowance for loss of the investment of debt instrument at fair value through other comprehensive income is stated as other comprehensive income, which does not reduce the carrying amount of the financial assets. Derecognition of financial assets

Financial assets can be removed from balance sheet only if all contractual cash flow entitlements have ended, or if the asset has been transferred with virtually all risks and returns assumed by another party.

On the full derecognition of a financial asset measured at amortized cost, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is stated as income. Where the accounts receivable at fair value through other comprehensive income is derecognized en masse, the difference between the carrying amount and collected consideration plus any accumulated profit or loss recognized as other comprehensive income is recognized into profit or loss.

1. Equity instruments

The liabilities and equity instruments issued by the Company are categorized as financial liabilities or equity based on the substance of the contract agreement and the definition of financial liabilities and equity instruments.

The equity instruments issued by the Company are recognized based on the acquisition price less direct issuing cost.

The Company's own equity instruments re-acquired are derecognized and deducted under the equity title. Acquisition, sale, issuance, or

• 23 -

cancellation of the Company's own equity instruments would not be recognized as income.

3. Financial liabilities

The financial liabilities held by the Company are measured at amortized cost using the effective interest method.

Upon derecognition, the difference between the carrying amount and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized into the income.

(XI) Recognition of revenue

The Company identifies contracts with customers, allocate the transaction price to the performance obligations, and recognize revenue when performance obligations are satisfied.

For any contract in which the time interval between transfer of commodities and collection of consideration is no more than one year, no adjustment will be made on the transaction price with respect to the financing component thereof.

The expected lifetime of the Company's contracts which doesn't exceed one year, and no consideration for the contracts with customers was excluded from the trading price. Therefore, the Company may apply the practical expedient policy and refrain from disclosing (1) the aggregate amount of transaction price amortized by the performance obligation which has not yet been satisfied, or has been satisfied only in part, at the end of the reporting period, and (2) the expected timing to recognize it as revenue, when performing obligations.

Revenue from sale of goods

The revenue from sale of goods is generated from the stainless steel shearing, splitting, surface treatment, processing and trading, and import & export of stainless steel products. Considering that customers already have the right to set price and use products, and take the responsibility for re-sale and bear the liability for resale when the products arrive at the destination designated by customers or are shipped, the Company recognizes the revenue and receivable accounts at the same time. The receipts in advance from sale of products is stated as contract liabilities before arrival or delivery of the products.

In the event of processing subcontract, the control over ownership of the processed products is not transferred. Therefore, no revenue is recognized at the time of processing subcontract.

• 24 -

Commission revenue

The commission revenue is generated from triangle trading. The Company provides the consignment product service as an agent. The revenue and accounts receivable are recognized when the control over the product is transferred and no subsequent obligation exists.

(XII) Lease

The Company evaluates whether a contract meets the criteria of (or includes arrangements characterized as) lease on the day of establishment. 1. The Company as a lessor

In an event all risks and remuneration of the ownership of the assets based on the leasehold terms and conditions are transferred to the lessees in full, such assets should be classified as financing leasehold. All other leaseholds are classified as operational leasehold.

In the operating lease, the lease payment is recognized as revenue under the straight-line method during the lease term. The original direct cost generated from acquisition of the operating lease is the book amount added to the underlying asset and is recognized as expense during the duration of leasehold on the straight-line basis.

When a lease includes both land and buildings elements, the Company assesses the classification of each element as a financing lease or an operating lease separately based on if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset to the lessee. The lease payments shall be allocated between the land and the buildings elements in proportion to the relative fair values of the leasehold rights in the land element and buildings element of the lease on the date when the contract is established. If the lease payments can be allocated reliably between these two elements, each element is treated based on the applicable classes of lease. If the lease payments cannot be allocated reliably between these two elements, the entire lease is classified as a finance lease, unless it is clear that both elements are operating leases, in which case, the entire lease is classified as an operating lease.

1. The Company as a lessee

The lease payments applicable to the recognized waived low-valued underlying asset lease and the short-term lease are recognized as expenses

• 25 -

on the straight-line basis over the lease period. For all other leases, the right-of-use assets and lease liabilities are recognized from the starting date of leases.

The right-of-use assets are initially measured at the costs (including the initially measured amount of lease liability, the lease payment paid before the lease starts less the received lease incentives, initial direct cost and estimated cost for recovery of the underlying assets); subsequently, they are measured at the costs deducting the accumulated depreciation and the loss of impairment, and the re-measurement of the lease liability is adjusted. Unless being qualified for the defined investment oriented property, the right-of-use assets are individually expressed in the balance sheet. For the recognition and measurement of the right-of-use assets that satisfy the definition of investment property, please refer to said investment property accounting policy.

The right-of-use assets are depreciated on a straight-line basis from the lease start date until the end of useful life or upon expiry of the lease period, whichever is earlier.

The lease liabilities are initially measured at the present value of the lease payment (including fixed payment, substantial fixed payment, variable lease payment depending on any index or fares, expected amount of payment from the lessee under the remaining value guarantee, the exercise price of the call option that is reasonably believed to be exercised, and the reflected penalties for termination of lease during the lease period, and deduction of the received lease incentives). If the implied interest rate of a lease is easy to be confirmed, the rate is applied to discount the lease payment. If the rate is not easy to be confirmed, the lessee incremental borrowing rate of interest will be applied.

Subsequently, the lease liabilities are measured at the amortized cost under the effective interest method, and the interest expense are allocated during the lease periods. If there is any change in the lease period, the expected amount of payment under the remaining value guarantee, the evaluation of the call option of the underlying assets, or the indexes or fares determining the lease payments will result in changes of future lease payment, the Company re-measures the lease liabilities, and relatively

• 26 -

adjusts the right-of-use assets; provided the book value of the right-of-use asset has decreased to zero, the remaining re-measured amount is recognized in the income. For the leasehold modification not treated as the separate leasehold, the lease liability remeasurement resulting from reduction of the scope of lease refers to reduction of the right-of-use assets, and profit or loss from termination of the lease, in whole or in part, is recognized. The lease liability remeasurement resulting from other modifications refers to adjustment of the right-of-use assets. The lease liabilities are presented individually on the balance sheet.

The variable rents not depending on any index or fees in a lease agreement are recognized as expenses of the period when it occurs. (XIII) Costs of loan

The loan cost of the assets that meet the essential requirement and directly attributable to the acquisition, construction, or production of assets is deem as part of the asset cost until all of the necessary activities completed for the asset to reach its intended use or sales state. All other loan costs are recognized as profit or loss upon the occurring year.

(XIV) Retirement benefits

Payments to defined contribution retirement benefit plans are recognized as an expense when employees have rendered service entitling them to the contributions.

(XV) Income tax

Income tax expenses (gains) refer to the sum of the current income tax and deferred income tax.

1. Current income tax

The Company determines current income (loss) in accordance with the laws and regulations established by each income tax reporting jurisdiction, so as to calculate the income tax payable (recoverable).

Income tax on undistributed surplus earnings is calculated in accordance with the provisions of the Income Tax Act of the Republic of China and recognized in the annual resolution of the shareholders' meeting.

The adjustment to prior period income tax payable is recognized into current income tax.

1. Deferred income tax

2. 27 -

Deferred income tax is recognized on temporary differences between the carrying amounts of assets and liabilities and the corresponding tax bases used in the computation of taxable income.

Deferred income tax liability is generally recognized for all taxable temporary differences, while deferred income tax asset is recognized is recognized for deductible temporary differences to the extent that it is probable that taxable income will be available against which the deductible temporary differences can be utilized.

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

The carrying amount of deferred income tax assets is reviewed on each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable income will be available to allow all or part of the asset to be recovered. A previously unrecognized deferred income tax asset is also reviewed on each balance sheet date and recognized to the extent that it has become probable that future taxable income will allow the deferred income tax asset to be recovered.

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

The Company has applied the recognition of deferred income tax assets and liabilities and exceptional condition for the disclosure related to

• 28 -

the income tax under Pillar 2. Therefore, the Company does not recognize the deferred income tax assets and liabilities related to the income tax under Pillar 2 or disclose any related information.

1. Current and deferred income taxes

Current and deferred income taxes are recognized into the income, except for the current and deferred income taxes related to the items recognized in other comprehensive income are recognized into other comprehensive income or directly included in the equity.

V. Significant accounting judgments, and major sources of estimation and assumption uncertainty

In the application of the Company’s accounting policies, the management is required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. The actual consequences might differ from the estimates.

When the Company develops significant accounting estimates, they will include the possible impact into the estimation of cash flow, growth rate, discount rate, profitability and other related major accounting estimates. The management will continue to review the estimates and basic assumptions.

VI. Cash and cash equivalents

the estimates and basic assumptions. Cash and cash equivalents
Cash on hand Bank checks and demand deposit Cash equivalents Time deposit with initial maturity date within three months	December 31, 2025 $ 72 23,915 - $ 23,987	December 31, 2024
			$ 76 25,758 3,479 $ 29,313

• (I) The annual interest rate ranges for cash equivalents on the balance sheet date are stated as follows:

stated as follows:
Bank time deposits (%)	December 31, 2025 -	December31,2024
		2.00

• (II) The Company’s trading counterparties and performing parties are reputable financial institutions with no significant performance concerns. Therefore, there is no significant credit risk.

• 29 -

VII. Notes and accounts receivable

es and accounts receivable
Notes receivable-from operations Measured at amortized cost Accounts receivable - from operations Total carrying amount measured at amortized cost At fair value through other comprehensive income	December 31, 2025 $ - $ 212,753 6,802 $ 219,555	December 31, 2024
			$ 509 $ 234,819 11,605 $ 246,424

(I) Notes receivable and accounts receivable measured at amortized cost

The Company's average credit period for sale of goods ranges from 30 days to 120 days. To reduce the credit risks, the Company's management have assigned the dedicated team to decide the limit of facility, approve the loan and track the overdue payment, to ensure the proper actions have been taken for the recovery of overdue receivables. The Company would, on the balance sheet date, recheck the recoverable amounts of the accounts receivable one by one, in order to assure that appropriate impairment allowance has been duly provided for uncollectible accounts receivable. Given this, the Company’s management believe that its credit risk should have been significantly reduced.

The Company recognizes loss allowance for accounts receivable based on the lifetime expected credit loss. The lifetime expected credit losses are calculated using the reserve matrix, by considering the past default records and current financial position of customers, industrial economic situations, and also the GDP forecast and industrial outlooks. As the Company’s credit loss history showed that there was no significant difference among the loss patterns of different customer bases, the reserve matrix doesn't further divide the customer bases, but only establishes the expected credit losses based on the number of days for which the accounts receivable become overdue.

The Company writes off a accounts receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery. For accounts receivables that have been written off, the Company continues to engage in enforcement activity to attempt to recover the

• 30 -

receivables due. Where recoveries are made, these are recognized into the income.

The loss allowance for notes and accounts receivable measured by the Company using the reserve matrix are as follows:

December 31, 2025

December 31, 2025
Expected credit loss rate (%) Total carrying amount Loss allowance (lifetime expected credit losses) Amortized cost December 31, 2024 Expected credit loss rate (%) Total carrying amount Loss allowance (lifetime expected credit losses) Amortized cost	Not past due - $ 195,796 - $ 195,796 Not past due - $ 209,568 - $ 209,568	Overdue for 1– 45 days - $ 16,957 - $ 16,957 Overdue for 1– 45 days - $ 25,760 - $ 25,760		Total
				$ 212,753 - $ 212,753 Total
				$ 235,328 - $ 235,328

(II) Accounts receivable at fair value through other comprehensive income

Subject to the operating fund, the Company decides to proceed with the factoring of accounts receivable to banks without recourse, or not to do so. The management model by which the Company manages such accounts receivable also achieves the intended purpose by collecting the contractual cash flows and selling financial assets. Therefore, such accounts receivable are measured at fair value through other comprehensive income.

The loss allowance on accounts receivable at fair value through other comprehensive income measured by the Company using the reserve matrix is stated as follows:

December 31, 2025

stated as follows: December 31, 2025
Expected credit loss rate (%) Total carrying amount Loss allowance (lifetime expected credit losses)	Not past due - $ 6,802 - $ 6,802		Total
			$ 6,802 - $ 6,802

• 31 -

December 31, 2024

December 31, 2024
Expected credit loss rate (%) Total carrying amount Loss allowance (lifetime expected credit losses)	Not past due - $ 11,605 - $ 11,605		Total
			$ 11,605 - $ 11,605

For the information about factoring of accounts receivable between the Company, please refer to Note 24. For the information about export bill negotiation for accounts receivable, please refer to Note 26.

VIII. Inventory

Inventory
Finished goods Goods in process Raw materials Supplies	December 31, 2025 $ 617,870 150,865 756,734 28,638 $ 1,554,107	December 31, 2024
			$ 803,653 26,691 1,313,205 33,964 $ 2,177,513

The operating costs related to inventories were NT$7,128,584 thousand and NT$7,324,866 thousand in 2025 and 2024, respectively, including the inventory valuation losses amounting to NT$0 for both years.

IX. Other financial assets – current

Other financial assets–current
Pledged bank deposit Current Non-current	December 31, 2025 $ 487,100 $ 200,100 287,000 $ 487,100	December 31, 2024
			$ 122,000 $ 122,000 - $ 122,000

The annual interest rates for the deposits were 0.64%~1.71% and 0.64%~1.28% on December 31, 2025 and 2024, respectively.

The Company’s trading counterparties and performing parties are reputable financial institutions with no significant performance concerns. Therefore, there is no significant credit risk.

For the amounts of other financial assets furnished by the Company to secure loans, please refer to Note 26.

• 32 -

X. Investments under equity method

Hold the ordinary shares of the subsidiary, QIYI PRECISION METALS CO., LTD (QIYI), and then wholly own the subsidiary in China, Ningbo Qiyi Precision Metals Co., Ltd., via the subsidiary in Hong Kong, Surewin Global Limited (HK) wholly invested by the Company. The ownership and voting right held by the Company were both 100% on December 31, 2025 and 2024.

XI. Property, plant and equipment

For own use 2025 Costs		Land		December 31, 2025 $ 1,090,593 Building and ancillary equipment Machinery and equipment Other equipment	December 31, 2025 $ 1,090,593 Building and ancillary equipment Machinery and equipment Other equipment	December 31, 2025 $ 1,090,593 Building and ancillary equipment Machinery and equipment Other equipment	December 31, 2024 $ 1,131,079 Construction in progress Total	December 31, 2024	December 31, 2024
		$ 681,489 - - - $ 681,489 $ - - - $ - $ 681,489		$ 524,196 981 - 5,849 $ 531,026 $ 239,808 23,627 - $ 263,435 $ 267,591	$ 440,662 10,421 ( 46,100 ) - $ 404,983 $ 295,030 29,189 ( 46,100) $ 278,119 $ 126,864	$ 44,300 4,174 ( 11,381 ) - $ 37,093 $ 24,730 4,214 ( 6,500) $ 22,444 $ 14,649	(	$ - 5,849 - 5,849) $ - $ - - - $ - $ -	$ 1,690,647 21,425 ( 57,481 ) - $ 1,654,591 $ 559,568 57,030 ( 52,600) $ 563,998 $ 1,090,593
Balance on January 1, 2025 Additions Disposal Reclassified Balance on December 31, 2025 Accumulated depreciation
Balance on January 1, 2025 Depreciation expenses Disposal Balance on December 31, 2025 Net on December 31, 2025

2024

2024
Costs		Land		Building and ancillary equipment	Machinery and equipment			Other equipment	Construction in progress			Total
		$ 681,489 - - $ 681,489 $ - - $ - $ 681,489		$ 499,113 21,182 3,901 $ 524,196 $ 215,087 24,721 $ 239,808 $ 284,388		$ 385,596 55,066 - $ 440,662 $ 270,735 24,295 $ 295,030 $ 145,632		$ 39,197 5,103 - $ 44,300 $ 20,408 4,322 $ 24,730 $ 19,570	(	$ 1,224 2,677 3,901) $ - $ - - $ - $ -		$ 1,606,619 84,028 - $ 1,690,647 $ 506,230 53,338 $ 559,568 $ 1,131,079
Balance on January 1, 2024 Additions Reclassified Balance on December 31, 2024 Accumulated depreciation
Balance on January 1, 2024 Depreciation expenses Balance on December 31, 2024 Net on December 31, 2024

Depreciation of the Company's property, plant and equipment is provided on a straight-line basis over useful years shown as follows:

straight-line basis over useful years shown as follows:
Building and ancillary equipment
Engineering, plant and office	15–40 years
Air conditioning, machine electronics and
decoration	3–20 years
Machinery and equipment	1–20 years
Other equipment	3–10 years

• 33 -

For the amounts of property, plant and equipment for own use as furnished by the Company to secure loans, please refer to Note 26.

XII. Lease agreement

• (I) Right-of-use assets

y to secure loans, please refer to reement Right-of-use assets	Note 26.
Carrying amount of right- of-use assets Other equipment Depreciation expenses of right-of-use assets Other equipment	December 31, 2025 $ - 2025 $ 29	December 31, 2024
			$ 29 2024
			$ 112

Except said recognized depreciation expenses, no sublease or impairment

on the right-of-use assets of the Company has taken place in 2025 and 2024.

• (II) Lease liabilities – only as of December 31, 2024

Lease liabilities – only as of December 31, 2024
Carrying amount of lease liabilities Current	December 31, 2024
		$ 29

Discount rate range (%) of lease liabilities are as follows:

December 31, 2024 Other equipment 1.15

(III) Information about other leases

Information about other leases
Short-term lease expenses Total cash outflows from lease		2025 $ 1,630 $ 1,659		2024
				$ 334 $ 448

XIII. Investment property

The Company's investment property refers to the land leased to non-related parties, without the appraisal conducted by an independent appraiser but based on the actual price registration information about neighboring areas referred to by the Company's management or the recent transaction price, as measured under Level 3 inputs. The fair values of the investment property were NT$74,186 thousand and NT$61,658 thousand, respectively, on December 31, 2025 and 2024.

• 34 -

The investment property owned by the Company is in its own interests. For the amounts of investment property furnished to secure loans, please refer to Note 26.

XIV. Costs of loan

(I) Short-term loans

The short-term borrowings of the Company are letters of credit from banks, credit loans and export bills. The range of annual interest rate on the balance sheet date is stated as following:

	sheet date is stated as following:
(II)	Annual interest rate (%) December 31, 2025 Letter of credit and credit loan 0.62～4.43 Export bill negotiation 4.12～4.45 Short-term notes and bills payable December 31, 2025 Taiwan Cooperative Bills Finance Corporation $ 100,000 China Bills Finance Corporation 80,000 Ta Ching Bills Finance Corporation 80,000 Mega Bills 60,000 Union Bank of Taiwan 40,000 $ 360,000	December31,2024
		1.82～5.09 4.86～5.44 December31,2024
			$ 100,000 80,000 80,000 60,000 40,000 $ 360,000

The annual interest rates were 2.10%~2.12% and 2.09%~2.12% on December 31, 2025 and 2024, respectively. (III) Long-term loans

Long-term loans
Pledged borrowings (Note 26) Maturing between September 2027 and May 2030 Less: Unamortized deferred sponsorship fees Less: Long-term loans, current portion Annual interest rate (%)	December 31, 2025 $ 935,000 2,681 932,319 60,000 $ 872,319 2.14～2.42	December 31, 2024
		$ 580,000 749 579,251 - $ 579,251 2.03～2.38

In order to repay the bank loans, cover subsidiaries’ capital expenditure and

• 35 -

enrich mid- and long-term working fund, the Company and its subsidiary, Surewin Global Limited (HK), executed the 5-year joint credit contracts with the syndicate including E.SUN BANK, et al. in January 2021, granting the facilities of NT$850,000 thousand and US$24,000 thousand, respectively, with the original maturity date in February 2026. Between February and May 2025, the Company and its subsidiary, Surewin Global Limited (HK), prepaid the remaining borrowings totaling NT$850,000 thousand and US$11,200 thousand, respectively. The Company further entered into a new 5-year syndicated loan agreement with a banking syndicate led by E.SUN Bank in April 2025, with a total credit facility of NT$1,500,000 thousand, maturing in May 2030.

In addition to the related requirements, said joint credit contracts also provided that the Company should, based on the annual consolidated financial statements, maintain the specific current ratio, liability ratio and tangible net worth in the duration of the loans. The Company was in compliance with the aforementioned regulations as of both December 31, 2025 and 2024.

XV. Other payables

Other payables
Import & export expenses payable Salary and bonus payable Packaging expenses payable Remuneration payable to employees and directors Payables for equipment and engineering Insurance premium payable Interest payable Others	December 31, 2025 $ 28,731 26,037 9,902 6,003 3,129 2,158 1,028 10,268 $ 87,256	December 31, 2024
			$ 36,768 22,436 8,658 5,852 63 1,989 1,440 8,275 $ 85,481

XVI. Retirement benefits plan

The Company adopts a pension system under the Labor Pension Act, which is a state-managed defined contribution plan. Under the plan, a company shall make monthly contributions to employees’ individual pension accounts at 6% of monthly salaries and wages.

XVII. Equity

(I) Capital stock

• 36 -

Ordinary share capital

Ordinary share capital
Authorized shares (in thousand shares) Authorized capital stock The number of issued and outstanding shares with paid-in capital (in thousand shares) Issued capital stock	December31,2025 220,000 $ 2,200,000 166,387 $ 1,663,868	December31,2024
			220,000 $ 2,200,000 166,387 $ 1,663,868

The ordinary shares are issued with par value of NT$10 per share with one voting right and right to collect dividends for each.

(II) Capital surplus

Capital surplus
It can only be applied for make-up of losses, cash distribution, or capitalization(Note1) Premium in stock issuance Corporate bond conversion premium Expired stock options Treasury stock trading It can only be applied for make-up of losses. Recognition of changes in ownership interests in subsidiaries (Note 2) Others	December31,2025 $ 664,259 155,165 27,995 6,543 388,298 870 $ 1,243,130	December31,2024
			$ 664,259 155,165 27,995 6,543 388,298 870 $ 1,243,130

Note 1: Such capital surplus can be used to make up for losses. Meanwhile, when the Company suffers no losses, it can be applied for cash distribution or capitalization. However, it is limited to a certain percentage of the annual paid-in capital for the purpose of capitalization. Note 2: Such capital surplus refers to the equity trade effect recognized due to the changes in the subsidiary’s equity when the Company has not actually acquired or disposed the equity of the subsidiary, or the amount of adjustment to the capital surplus of the subsidiary recognized under the equity method.

(III) Retained earnings and dividend policy

• 37 -

According to the Articles of Incorporation, if there is a surplus after account settlement of the fiscal year, the Company shall pay applicable taxes and cover loss carried forward, followed by the allocation in the following order:

1. Set aside 10% of the balance, if any, as the legal reserve.

2. Provision or reversal of special reserve pursuant to laws.

3. The balance, if any, plus the undistributed earnings for the previous years shall be allocated according to the earnings appropriation proposal submitted by the Board of Directors as resolved by a shareholders’ meeting.

The Company’s dividend policy is set forth in response to the current and future development plan and by taking into consideration the investment environment, funding needs and domestic/foreign competition, as well as shareholders’ equity. The Company may distribute no less than 20% of the distributable earnings generated in the current year as the shareholder dividend and bonus in that year. The shareholder dividend and bonus may be allocated in cash or in the form of stock, provided that the cash dividend allocable shall be no less than 20% of the total dividends.

The legal reserve should be contributed until its balance reaches the Company’s total paid-in capital stock. The legal reserve can be appropriated to cover previous losses. Where the Company doesn’t operate at a loss, the part of the legal reserve in excess of 25% of the paid-in capital could be applied for capitalization and may be allocated in cash as well.

The Company has special reserve appropriated and reversed in accordance with the order under Jin-Guan-Zhen-Fa-Zi No. 1090150022 and “Appropriation of Special Reserve Q&A after the Adoption of International Financial Reporting Standards (IFRS Accounting Standards).”

The Company resolved at the annual general meetings convened on May 27, 2025, and June 6, 2024, about distribution of earnings of 2024 and 2023 as follows:

follows:
Legal reserve Provision (reversal) of special reserve Cash Dividend	Earnings appropriation proposal 2024 2023 $ 22,540 $ - ( 83,472 ) 65,231 149,748 - $ 88,816 $ 65,231		Dividend per share (NT$)
	2024 $ 22,540 ( 83,472 ) 149,748 $ 88,816		2024 $ 0.9	2023
				$ -

• 38 -

The Company's annual general meeting on June 6, 2024 resolved to distribute cash from capital surplus. Specifically, the Company would distribute NT$83,193 thousand from the capital surplus generated from the consideration issued at premium of the par value. Such distribution will be made at NT$0.5 per share.

(IV) Special reserve

The amount stated as accumulated translation adjustments restated into retained earnings upon the first-time application of IFRS Accounting Standards was NT$29,835 thousand. Because the amount of increase in retained earnings after first-time adoption of IFRS Accounting Standards was relatively low, the Company only provided for special reserve on the NT$16,894 thousand increase in retained earnings that occurred following the adoption of IFRS Accounting Standards.

(V)

When distributing earnings, the Company shall provide the special reserve for the difference between the net deduction under other shareholders’ equity and the special reserve provided upon the first-time adoption of IFRSs. After that, if there is any reversal for the deduction under other shareholders, the reversed portion may be distributed of earnings. Other equity items

Changes in the exchange differences on translation of foreign financial statements are stated as follows:

Balance, beginning Exchange differences on translation of foreign operations Balance, ending	2025 ( $ 134,296 ) 36,046 ($ 98,250)	2024
		( $ 217,767 ) 83,471 ($ 134,296)

XVIII. Revenue

evenue
Revenue from customer contracts Revenue from sale of goods Commission revenue (Note 25)		2025 $ 7,444,483 233 $ 7,444,716		2024
				$ 7,880,093 257 $ 7,880,350

(I) For the notes to customer contracts, please refer to Note 4.

• 39 -

(II) Contract balance

Contract balance
Notes receivable (Note 7) Accounts receivable (Note 7) Contract liabilities – current Sale of goods	December 31, 2025 $ - 219,555 $ 219,555 $ 97,162	December 31, 2024 $ 509 246,424 $ 246,933 $ 163,168		January 1, 2024
				$ 644 208,676 $ 209,320 $ 102,165

The change in contract liabilities primarily results from the difference between the point in time when the Company satisfies the performance obligation and the point in time when the customers make payment. Notwithstanding, no significant changes took place in 2025 and 2024.

Amount of the contract liabilities from the beginning of the year recognized in the revenue in the current period:

Sale of goods		2025 $ 162,613		2024
				$ 102,160

(III) Breakdown of revenue from customer contracts

For the information about breakdown of revenue, please refer to Table 9.

XIX. Profit before tax

fit before tax
(I) Interest revenue Bank deposits Amortization of premium on convertible corporate bonds (II) Other revenue Revenue from government subsidies Rental revenue Others		2025 $ 7,315 - $ 7,315 2025 $ 12,669 3,852 1,844 $ 18,365		2024
				$ 1,735 4 $ 1,739 2024
				$ 3,133 - 2,170 $ 5,303

(III) Other gains and losses

• 40 -

Gain on disposal of investment property Net foreign exchange gains (losses) Loss on disposal of property, plant and equipment Net gains from financial assets at fair value through profit or loss Gains on redemption of corporate bonds (IV) Financial costs Total interest expenses on financial liabilities measured at amortized cost (V) Depreciation Property, plant and equipment Right-of-use assets Total Summarization of depreciation expenses by function Operating Cost Operating expenses (VI) Employee benefit expenses Salary, dividend and bonus Labor/national health insurance premium Retirement benefits Defined contribution plan Other employee benefits	2025 $ 18,819 ( 5,382 ) ( 424 ) - - $ 13,013 2025 $ 64,012 2025 $ 57,030 29 $ 57,059 $ 53,482 3,577 $ 57,059 2025 $ 124,276 12,835 4,623 11,067		2024
			$ - 19,024 - 118 35 $ 19,177 2024
			$ 54,402 2024
			$ 53,338 112 $ 53,450 $ 49,123 4,327 $ 53,450 2024
			$ 116,964 11,481 4,472 10,721

• 41 -

Total employee benefit expenses Summarization by function Operating Cost Operating expenses	$ 152,801 $ 71,769 81,032 $ 152,801	$ 143,638 $ 67,614 76,024 $ 143,638

(VII) Remuneration to employees and directors

No less than 2% and no more than 2% of the net profit before tax before deduction of the remuneration to employees and directors for the current year should be distributed to employees and directors, respectively. In accordance with the August 2024 amendments to the Securities and Exchange Act, the Company’s 2025 shareholders' meeting approved an amendment to the Articles of Incorporation. The amended Articles specify that no less than 50% of the employee remuneration for the current year shall be allocated to entry-level employees. The estimated remuneration to employees (including entry-level employees) and directors for 2025 and 2024 as resolved at the Board of Director meetings on March 10, 2026, and March 6, 2025, is stated as follows:

Estimate on ratio Remuneration to employees (%) Remuneration to directors (%) Amount Remuneration to employees Remuneration to directors	2025 2.00 0.35 $ 5,110 893	2024
		2.00 0.36 $ 4,970 882

Should there be any change to the annual parent company only financial

statements after the reporting date, the differences are accounted for as the changes of accounting estimates in the following year.

There was no difference between the amount of actual remuneration distributed to the employees and directors in 2024 and the amount recognized in the 2024 parent company only financial statements.

Please refer to the “Market Observation Post System” of the Taiwan Stock Exchange for information on the remuneration to the Company’s employees and directors resolved in the Board of Directors meetings.

• 42 -

(VIII) Net foreign exchange gains (losses)

Total foreign exchange gains Total foreign exchange losses Net profit or loss		2025 $ 81,768 87,150) $ 5,382)		2024
	( (		(	$ 55,470 36,446) $ 19,024

XX. Income tax

(I) Income tax recognized into the income

The income tax expenses (gains) are primarily composed of the following items:

items:
			2025		2024
Current income tax
Those generated in
the current year		$ -			$ 5,173
Levied on
undistributed
earnings			3,609			-
Adjustment of
previous year(s)	(		10,457)		756
	(		6,848 )		5,929
Deferred income tax
Those generated in
the current year	(		13,782)		10,867
Income tax expenses
(gains) recognized into
the income	(	$ 20,630)			$ 16,796
The accounting income and income tax expenses (gains) are adjusted below:
			2025		2024
Profit before tax		$ 249,137			$ 242,194
Income tax on net profit
before tax at statutory
tax rate		$ 49,827			$ 48,439
Expenses and losses not
exempted from tax			446		524
Levied on undistributed
earnings			3,609			-
The income tax expenses
of previous year(s)
adjusted in the current
year	(		10,457 )		756
Unrecognized changes in
temporary difference	(		64,055)	(32,923)

• 43 -

$ 16,796

Income tax expenses (gains) recognized into the income ( $ 20,630

• (II) Current income tax assets and liabilities

Current income tax assets Tax refund receivable Current income tax liabilities Income tax payable	December 31, 2025 $ 11,993 $ -	December 31, 2024	December 31, 2024
			$ - $ 8,338

(III) Deferred income tax assets and liabilities

Changes in deferred income tax assets and liabilities are as follows:

2025

2025
Deferred income tax assets Exchange differences of foreign financial statements Loss credit Others Deferred income tax liabilities Undistributed earnings of subsidiaries Others 2024		Balance, beginning $ 49,775 - 12,547 $ 62,322 $ 15,106 426 $ 15,532	Recognized into the income $ - 13,437 - $ 13,437 $ - ( 345) ($ 345)	Balance, ending
			( (		$ 49,775 13,437 12,547 $ 75,759 $ 15,106 81 $ 15,187

2024
Deferred income tax assets Exchange differences of foreign financial statements Loss credit Others Deferred income tax liabilities Undistributed earnings of subsidiaries Others		Balance, beginning $ 49,775 9,853 13,135 $ 72,763 $ 15,106 - $ 15,106	Recognized into the income $ - ( 9,853 ) ( 588) ($ 10,441) $ - 426 $ 426	Balance, ending
			( ( (		$ 49,775 - 12,547 $ 62,322 $ 15,106 426 $ 15,532

(IV) Aggregate of temporary difference related to investment and without recognizing deferred income tax liabilities

• 44 -

As of December 31, 2025 and 2024, the taxable temporary differences related to investment in subsidiaries and without recognizing deferred income tax liabilities were NT$1,633,499 thousand and NT$1,277,177 thousand, respectively.

(V) Unused loss credit

As of December 31, 2025, the information on loss credit is stated as follows:

Balance to be deducted $ 67,185	Last yearofcredit
	2030

(VI) Authorization of income tax

The tax collection authorities have authorized the profit-seeking enterprise

income tax returns of the Company until 2023.

XXI. Earnings per share

The current net income and weighted average number of ordinary shares used to calculate the earnings per share (EPS) are enumerated below:

Net income

Net income
Net income Effect of potentially dilutive ordinary shares Conversion of corporate bonds Net income used to calculate diluted earnings per share Shares The weighted average number of ordinary shares used to calculate the basic EPS Effect of potentially dilutive ordinary shares Remuneration to employees Conversion of corporate bonds The weighted average number of ordinary shares used to calculate the diluted EPS		2025 2024 $ 269,767 $ 225,398 - ( 31) $ 269,767 $ 225,367 Unit: Thousand Shares 2025 2024 166,387 166,387 323 313 - 8 166,710 166,708		2024
				166,387 313 8 166,708

• 45 -

If the Company offers to settle the remuneration to employees in cash or shares, when calculating diluted earnings per share, the Company needs to assume that the entire amount of the remuneration to employees will be settled in shares, and the resulting potential shares shall be included in the weighted average number of ordinary shares used in the computation of diluted earnings per share, as the effect is dilutive. Such dilutive effect of the potential shares should be included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved by the Board of Directors in the next year.

XXII. Information about cash flow

(I) Non-cash transactions

The Company’s investing activities for non cash transactions in 2025 and 2024 are stated as follows:

2024 are stated as follows:
Investing activities that affect cash and non-cash items at the same time Increase in property, plant and equipment Increase (decrease) in prepayments for equipment Decrease (increase) in payables for equipment and engineering (stated into other payables) Cash paid for procurement of property, plant and equipment Cash		2025 $ 21,425 42,141 3,066) $ 60,500	2024
	(		$ 84,028 ( 27,417 ) 747 $ 57,358

(II) Changes in liabilities from financing activities

2025

2025
Balance on January 1, 2025 Net cash flow from financing activities Non-cash changes Amortization of premium and issue cost Balance on December 31, 2025	Short-term loans		Short-term notes and bills payable		Long-term loans	Leaseliabilities		Deposit received		Total
	$ 1,427,740 ( 349,718 ) - $ 1,078,022		$ 360,000 - - $ 360,000		$ 579,251 351,850 1,218 $ 932,319	$ 29 ( 29 ) - $ -		$ 13,464 - - $ 13,464		$ 2,380,484 2,103 1,218 $ 2,383,805

• 46 -

2024

2024
Balance on January 1, 2024 Net cash flow from financing activities Non-cash changes Amortization of premium and issue cost Gains on redemption of corporate bonds Balance on December 31, 2024		Short-term loans	Short-term notes and bills payable	Corporate bonds payable (including the currentportion)	Long-term loans	Leaseliabilities		Deposit received		Total
		$ 746,268 681,472 - - $ 1,427,740	$ 370,000 ( 10,000 ) - - $ 360,000	$ 2,439 ( 2,400 ) ( 4 ) ( 35) $ -	$ 598,575 ( 20,200 ) 876 - $ 579,251	$ 142 ( 113 ) - - $ 29		$ 10,048 3,416 - - $ 13,464		$ 1,727,472 652,175 872 ( 35) $ 2,380,484

XXIII. Capital risk management

The Company conducts the capital management to ensure that the entities within the Company may, insofar as they can continue operating, maximize the ROE by optimizing the balances of liabilities and equity. The overall strategies adopted by the Company remained unchanged in the most recent two years.

The capital structure of the Company consists of net debt (i.e., loans less cash and cash equivalents) and equity attributable to owners of the Company (i.e., capital stock, capital surplus, retained earnings and other equity).

Except Note 14, the Company is not required to comply with any other external capital requirements.

XXIV. Financial instruments

(I) Information about fair value

The Company’s management consider that the carrying amounts of nonfinancial assets/liabilities at fair value through profit or loss approximate their fair value.

(II) Types of financial instruments

fair value. Types of financial instruments
Financial assets At fair value through other comprehensive income Measured at amortized cost (Note 1) Financial liabilities Measured at amortized cost (Note 2)	December 31, 2025 $ 6,802 869,581 2,483,965	December 31, 2024
		$ 11,605 487,376 2,480,277

Note 1: The balances include the financial assets measured at amortized cost,

such as cash and cash equivalents, notes receivable, accounts receivable, other receivables, other financial assets and refundable deposit (stated into other non-current assets).

• 47 -

Note 2: The balances include the financial liabilities measured at amortized cost, such as short-term loans, short-term notes and bills payable, notes payable, accounts payable, other payables, long-term loans (including the current portion), and deposit received.

• (III) Financial risk management objectives and policies

The major financial instruments of the notes and accounts receivable, other receivables, other financial assets, loans, short-term notes and bills payable, notes and accounts payable, borrowings, other payables, and lease liabilities. The financial management department of the Company analyzes and manages financial risks related to the operation of the Company based on the risk level and span. Such risks include market risks (including foreign exchange rate risk and interest rate risk), credit risk and liquidity risk.

The financial management departments present the report to the Company's management periodically.

1. Market risk

The Company's business activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates.

• (1) Foreign exchange rate risk

The Company engages in foreign currency-denominated sales and purchases, which expose the Company to the risk of foreign exchange rate fluctuation.

For the non-functional currency-denominated monetary assets and liabilities (including the non-functional currency-denominated monetary items already written off in the consolidated financial statements) of the Company rendering significant impacts on the balance sheet date, please refer to Note 28.

Sensitivity analysis

The Company is primarily exposed to the fluctuation in foreign exchange rate in USD.

The following table explains the Company’s sensitivity analysis in the case of the increase or decrease in NTD (the functional currency) against any critical foreign currency by 1%.

The sensitivity analysis includes outstanding foreign currency-

denominated monetary items. A positive (negative) number

• 48 -

indicated in the following table indicates an increase (decrease) in net profit before tax associated with the functional currency appreciation by 1% against the related currency, while it would be the same but negative number reflecting the effect on the net profit before tax associated with the functional currency depreciation by 1%.

(2)

1%.
Profit or loss Interest rate risk		2025 $ 555		2024
				$ 941

The carrying amounts of the Company’s financial assets and financial liabilities with exposure to interest rates on the balance sheet date are stated as following:

sheet date are stated as	following:	following:
	December 31, 2025		December 31, 2024
Fair value interest rate
risk
Financial assets	$	405,000	$	39,479
Financial
liabilities		845,055		843,918
Cash flow interest
rate risk
Financial assets		106,015		111,758
Financial
liabilities		1,527,967		1,523,851
For the assets and	liabilities with floating		interest	rate, when the

Company reports the interest rates to the major management internally, the variable interest rates applied is the interest rate increase or decrease by 100 base points. If the interest rate increases for 100 base points (1%), while other variables are kept the same, the net profit before tax of the Company in 2025 and 2024 will decrease (increase) by NT$14,000 thousand, primarily as a result of the bank loans and deposits with floating interest rate of the Company.

2. Credit risk

Credit risk refers to the risk that a trading counterpart will default on its contractual obligations and thereby result in the risk of financial loss to the Company. The credit risk of the Company primarily arises from cash and cash equivalents, notes receivable, accounts receivable, other receivables, other financial assets and refundable deposit (stated into other non-current assets). The maximum credit risk exposure is equivalent to the

• 49 -

carrying amount of financial assets in the parent company only balance sheet.

Trading counterparties of the Company have adopted their own loan policies and procedures for management of accounts receivable, in order to ensure the collection and evaluation of accounts receivable. Meanwhile, the trading counterparties cover multiple customers and banks. Therefore, no significant concentrated credit exposure exists.

3.

Liquidity risk

The Company manages and maintains the cash and facility positions sufficient to finance the Company's operations and mitigate the effects of fluctuations in cash flows. The Company's management also monitor the status of the facility granted by banks and ensures compliance with loan contracts. Therefore, there should be no liquidity risk generated from unfulfilled contract obligations due to failure to raise fund.

The Company may be asked to repay the financial liabilities included in the earliest time band in the following table immediately, regardless of the probability for the trading counterparties to choose exercise of their rights immediately. Notwithstanding, the analysis on the maturity dates for other non-derivative financial liabilities is prepared based on the agreed repayment dates.

The undiscounted interest for the cash flow of interest payable at floating interest rate serves as the basis for estimation of the future interest cash flow based on the interest rate on the balance sheet date.

December 31, 2025 Non-derivative financial liabilities Non-interest bearing liabilities Floating interest rate instruments Fixed interest rate instruments Financial guarantee liabilities December 31, 2024 Non-derivative financial liabilities Non-interest bearing liabilities Lease liabilities	Repayment on demand or less than 1 month $ 94,401 2,350 670,705 - $ 767,456 $ 95,167 10		1–3 months $ 2,215 249,596 90,147 - $ 341,958 $ 1,403 19	3 months–1 year $ 3,544 425,204 - 1,212,747 $ 1,641,495 $ 3,252 -		1–5 years
						$ 13,464 931,106 - 269,264 $ 1,213,834 $ 13,464 -

• 50 -

Floating interest rate instruments Fixed interest rate instruments Financial guarantee liabilities	2,307 670,388 - $ 767,872	175,487 40,001 - $ 216,910	785,901 - 1,492,874 $ 2,282,027

The floating interest rate instruments of said non-derivative financial assets and liabilities could vary depending on the floating rate, and the interest rate estimated on the balance sheet date.

(IV) Transfer of financial assets

The information about factoring of the Company's accounts receivable yet matured at the end of the year:

Trading counterparty	Current factoring amount (NT$ thousand)	Amount re-stated into other receivables (NT$ thousand)	Amount re-stated into other receivables (NT$ thousand)	Available advance amount (NT$ thousand)	Amount already advanced (NT$ thousand)	Annual interest on amount already advanced (%)
December 31, 2025 CTBC Bank USD 2,844 E.SUN Bank 1,249 Taipei Fubon Bank 287 USD 4,380 December 31, 2024 CTBC Bank USD 3,222 E.SUN Bank 1,748 Taipei Fubon Bank 480 USD 5,450 According to the factoring			USD 1,510 USD 942 USD 1,334 4.54～4.59 1,098 972 151 4.59～4.64 287 229 - - USD 2,895 USD 2,143 USD 1,485 USD 2,048 USD 1,404 USD 1,174 5.15～5.42 385 210 1,363 5.38～5.59 480 384 - - USD 2,913 USD 1,998 USD 2,537 contracts, the loss derived from business dispute

(e.g. sales return or allowances, etc.) should be borne by the Company, while the

loss derived from credit risk should be borne by the bank. The Company has provided the promissory notes to secure the loss generated from the business dispute in the following amount:

Unit: Any currency thousand

USD	December31,2025 $ 19,775	December31,2024
		$ 19,775

XXV. Transactions with related parties

The transactions between the Company and related parties, other than those already disclosed in other notes, are stated as follows:

(I) Name of related party and relationship

in other notes, are stated as follows: Name of related party and relationship
Name of related party QIYI PRECISION METALS CO., LTD Surewin Global Limited (HK) Ningbo Qiyi Precision Metals Co., Ltd. (Ningbo Qiyi)	Relationship withthe Company
	Subsidiaries Subsidiaries Subsidiaries

• 51 -

(II) Operating Revenue

Category of related party 2025 2024 Subsidiaries $ 15,978 $ 51,909

The transaction prices between the Company and related parties are measured at cost plus price. There is no non-related party transaction available for comparison, and there is no significant difference between the payment terms and those of the general customers.

(III) Receivables - related party

Account title	Category of related party	December 31, 2025	December 31, 2025	December 31, 2024
Accounts receivable Subsidiaries The outstanding balance of accounts receivable			$ 28 $ - - related party has not yet

require guarantee. No impairment loss on receivables-related party has been provided in 2025.

(IV) Accounts payable - related party

Account title	Category of related party	December 31, 2025	December 31, 2024
Accounts payable Subsidiaries $ 5,453 $ 4,583 The outstanding balance of accounts payable - related party is not secured, but will be repaid in cash.

• (V) Commission revenue

The commission revenue collected by the Company from the subsidiary in China, Ningbo Qiyi, through the triangle trading was NT$233 thousand and NT$257 thousand, respectively, in 2025 and 2024, stated into operating revenue.

(VI) Endorsements/guarantees

Category of related party December 31, 2025 December 31, 2024 Subsidiaries Guarantee Amount $ 3,058,873 $ 3,546,486 Drawdown, ending $ 1,482,011 $ 1,860,010 As of December 31, 2025 and 2024, the Company's Chairman has provided

endorsements/guarantees of the equivalent amount for the short-term loan, short-

term notes and bills payable and long-term loans (including those maturing within one year) for the Company.

(VII) Salary and compensation to key management level

Short-term employee benefits		2025 $ 19,500		2024
				$ 18,640

• 52 -

The salaries and remunerations to directors and the key management are determined subject to the personal performance and market trends.

XXVI. Assets pledged as collateral or for security

The Company has provided the following assets as collateral or security for the bank

loans:

loans:
Property, plant and equipment Other financial assets Accounts receivable Investment property	December 31, 2025 $ 743,387 487,100 85,055 36,453 $ 1,351,995	December 31, 2024
			$ 747,664 122,000 133,888 45,380 $ 1,048,932

XXVII. Major contingent liabilities and unrecognized contractual commitments

The Company has the following major commitments on the balance sheet date:

• (I) As of December 31, 2025 and 2024, the Company has issued the letters of credit, which remain unused, bearing the amounts, NT$297,710 thousand and NT$248,230 thousand, respectively.

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

Purchase agreement Purchase of property, plant and equipment	December 31, 2025 $ 343,727 $ 5,230	December 31, 2024	December 31, 2024
			$ 519,673 $ 770

XXVIII. Information about foreign-currency-denominated assets and liabilities that have significant influence

The following information is summarized according to the foreign currencies other than the functional currency of the Company. The foreign exchange rates disclosed are used to translate the foreign currency into the functional currency. Foreign-currencydenominated assets and liabilities that have significant influence:

December 31, 2025 Monetary financial assets USD Monetary financial liabilities USD December 31, 2024 Monetary financial assets USD	Foreign currency (NT$ Thousand) $ 6,397 4,632 5,917	Foreign exchange rate USD1=NTD31.44 USD1=NTD31.44 USD1=NTD32.78	NT$Thousand
			$ 201,132 145,616 193,974

• 53 -

Monetary financial liabilities USD 3,047 USD1=NTD32.78 99,871

For the significant realized and unrealized gains (losses) on foreign exchange of the Company, please refer to the net foreign currency exchange gains (losses), referred to in Note 19(8).

XXIX. Disclosures in notes

• (I) Information on significant transactions

• Fund loaned to others: None.

• Making of endorsements/guarantees for others: Please refer to Schedule 1 hereto.

• Significant securities held at the end of the period: None.

• Purchase/sale amount of transactions with related parties reaching NT$100 million or more than 20% of the paid-in capital: None.

• Accounts receivable-related party reaching NT$100 million or more than 20% of the paid-in capital: None.

• Other information: Business relationship and amount of major transactions between parent company and subsidiaries and among subsidiaries: None.

• (II) Information on investees: Please refer to Schedule 2 hereto.

• (III) Information on investment in the mainland China

• Investees’ name, business operations, paid-in capital, investment method, capital inward or outward, shareholding ratio, profit or loss for the period and recognized investment gain or loss, investment year end carrying amount, investment income and loss inward, and investment limits in the mainland China: Please refer to Schedule 3 hereto.

• Any of the following significant transactions with investees in the mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses:

  • (1) Purchase amount and percentage and the related payables ending balance and percentage: Please refer to Schedule 4 hereto.

  • (2) Sale amount and percentage and the related receivables ending balance and percentage: Please refer to Schedule 4 hereto.

  • (3) The amount of property transactions and the amount of the resultant gains or losses: None.

• 54 -

• (4) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the year and the purposes: Please refer to Schedule 1 hereto.

• (5) The highest balance, the end of period balance, the interest rate range, and total interest for the current year, with respect to financing of funds: None.

• (6) Other transactions that have a material effect on the profit or loss for the period or on the financial position, such as the provision or acceptance of services: None.

• 55 -

Unit: NT$ Thousand

Yuen Chang Stainless Steel Co., Ltd.

Making of endorsements/guarantees for others

January 1 to December 31, 2025

Schedule 1

No.	Endorser/guarantor	Endorsed/guaranteed party	Endorsed/guaranteed party	Limits on endorsements/ guarantees Guarantee limit (Note 1)	Current maximum endorsement/ guarantee balance	Endorsement/ guarantee balance - ending	Drawdown, ending	Endorsements/ guarantees secured by property	Ratio of the cumulative endorsement/ guarantee amount to the net worth in the most recent financial statements (%)	Maximum endorsements/ guarantees (Note 2)	Endorsement/ guarantee made by the parent company for its subsidiaries	Endorsements/ guarantees made by the subsidiaries for the parent company	Endorsement/ guarantee made for the operations in Mainland China
		Company name	Affiliation
1 2	The Company The Company	Ningbo Qiyi Precision Metals Co., Ltd. Surewin Global Limited (HK)	Subsidiary in which the Company indirectly holds 100% of the voting shares Subsidiary in which the Company indirectly holds 100% of the voting shares	$ 8,319,264 8,319,264	$ 4,193,360 821,250	$ 3,058,873 -	$ 1,482,011 -	$ 369,000 -	74 -	$ 8,319,264 8,319,264	Yes Yes	No No	Yes No

Note 1: The maximum amount of the endorsement/guarantee to a single subsidiary wholly owned by the Company shall not exceed 200% of the Company's net worth.

Note 2: The total amount of the endorsement/guarantee for others shall not exceed 200% of the Company's net worth.

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Yuen Chang Stainless Steel Co., Ltd.

Information related to the investees, such as names and locations, etc.

January 1 to December 31, 2025

Schedule 2

Unit: NT$ Thousand

						Holding at end of year	Holding at end of year	Holding at end of year		Investment income
				Original investment amount			Percentage		Investee’s current	recognized in the
Investor’s name	Investee’s name	Location	Main business lines	End of the current year	End of last year	Shares	(%)	Carrying amount	income	current year	Remark
The Company	QIYI PRECISION METALS CO.,	British	Engaged in professional investment activities	$ 1,140,000	$ 1,140,000	48,000,000	100	$ 3,035,082	$ 320,276	$ 320,276	Subsidiaries
	LTD	Cayman
		Islands

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Yuen Chang Stainless Steel Co., Ltd.

Information on investment in the mainland China

January 1 to December 31, 2025

Schedule 3

Unit: NT$ Thousand (Unless otherwise noted)

Mainland China Investee’s name	Main business lines	Main business lines	Paid-in capital	Investment	method	Accumulated outward remittance for investment from Taiwan at the beginning of the year	Investment remittance or regain in the current year	Investment remittance or regain in the current year	Accumulated outward remittance for investment from Taiwan at the end of the year	Investee’s current income	Ownership of direct or indirect investment (%)	Investment income recognized in the current year	Carrying amount of the investment at the end of the year	Accumulated repatriation of investment income until the end of the year	Remark
							Outward	Inward
Ningbo Qiyi Precision Metals Co., Ltd.	Stainless steel shearing, splitting and cold rolling, processing and trading, and import & export of stainless steel products.		RMB 535,848 thousand	Note	1	$ 1,140,000	$ -	$ -	$ 1,140,000	$ 320,654	100	$ 320,654	$ 3,024,038	$ -
Investor’s name		Accumulated outward remittance for investment in Mainland China until the end of the period			Investment amounts authorized by Investment Commission, MOEA (Note 3)			Limit of investment amount by the Company in the mainland China (Note 2)
Yuen Chang Stainless Steel Co., Ltd.		$ 1,140,000 (US$37,619 thousand)			$ 2,463,250 (US$82,619 thousand)			$ 2,495,779

Note 1: To invest in the mainland China companies through remittance from a company existing in a third area.

Note 2: Limit of investment amount by Yuen Chang Stainless Steel Co., Ltd. In the mainland China is calculated as follows: $4,159,632 × 60% = $2,495,779. Note 3: Including the recapitalization of earnings of Ningbo Qiyi Precision Metals Co., Ltd., US$45,000 thousand.

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Yuen Chang Stainless Steel Co., Ltd.

Any of the following significant transactions with investees in the mainland China, either directly or indirectly through a third party, and their prices, payment terms, unrealized gains or losses and other related information.

2025

Schedule 4

Unit: NT$ Thousand

(Unless otherwise noted)

Mainland China Investee’s name	Type of transaction	Purchase (sale)	Purchase (sale)	Price	Trading conditions	Trading conditions	Accounts/notes receivable (payable)	Accounts/notes receivable (payable)	Unrealized profit or loss	Remark
		Amount	Percentage		Payment terms	Comparison with the general transactions	Amount	Percentage
Ningbo Qiyi Precision Metals Co., Ltd.	Sale of goods Purchase of goods	$ 15,978 -	- -	General trading conditions General trading conditions	O/A 45 days O/A 45 days	No material difference from the general customers. No material difference from the general suppliers.	$ 28 ( 5,453 )	- 100	$ - -	Note

Note: Primarily as a result of the collection and payment in the triangle trading.

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§Table of Contents for Major Accounting Titles§

Item Statement of Assets, Liabilities and Equity Statement of Cash and Cash Equivalents Statement of Accounts Receivable Statement of Inventories Statement of Changes in Investment under Equity Method Statement of Changes in Property, Plant and Equipment Statement of Changes in Accumulated Depreciation of Property, Plant and Equipment Statement of Deferred Income Tax Assets Statement of Short-term Loans Statement of Short-Term Notes and Bills Payable Statement of Accounts Payable Statement of Long-term Loans Statement of Other Payables Statement of Profit or Loss Statement of Operating Revenue Statement of Operating Costs Statement of Selling Expenses Statement of Administrative Expenses Statement of R&D Expenses Summarization of Employee Benefit and Depreciation and Amortization Expenses by Function

No./Index

Statement 1 Statement 2 Statement 3 Statement 4 Note 11 Note 11 Note 20 Statement 5 Statement 6 Statement 7 Statement 8 Note 15 Statement 9 Statement 10 Statement 11 Statement 11 Statement 11 Statement 12

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Yuen Chang Stainless Steel Co., Ltd.

Statement of Cash and Cash Equivalents

December 31, 2025

Statement 1

Unit: NT$ Thousand, unless otherwise specified

Item Cash on hand Bank deposits Checks and demand deposit Foreign currency demand deposits	Memo US$202 thousand		Amount
			$ 72 17,550 6,365 $ 23,987

Note: Note: USD1=NTD31.44.

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Yuen Chang Stainless Steel Co., Ltd.

Statement of Accounts Receivable

December 31, 2025

Statement 2

Unit: NT$ Thousand

Name ofcustomer Non-related party Customer A Customer B Customer C Customer D Customer E Others (Note)		Amount $ 48,782 37,670 15,205 14,655 12,104 91,139 $ 219,555	Accounts overdue for more than one year	Accounts overdue for more than one year
				$ - - - - - - $ -

Note: The individual balance is less than 5% of the balance under the Item.

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Yuen Chang Stainless Steel Co., Ltd.

Statement of Inventories

December 31, 2025

Statement 3

Unit: NT$ Thousand

Item Finished goods Goods in process Raw materials Supplies		Amount	Amount
		Costs $ 617,870 150,865 756,734 28,638 $ 1,554,107	Net	realizable value
				$ 666,562 170,611 862,824 28,638 $ 1,728,635

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Yuen Chang Stainless Steel Co., Ltd.

Statement of Changes in Investment under Equity Method

2025

Statement 4

Unit: NT$ Thousand

Investee Ordinary shares Non-TWSE/TPEx-listed company QIYI PRECISION METALS CO., LTD	Balance, beginning Shares Amount 48,000,000 $ 2,678,760	Balance, beginning Shares Amount 48,000,000 $ 2,678,760	Increase this year (Note 1) Shares Amount - $ 356,322	Increase this year (Note 1) Shares Amount - $ 356,322	Decrease	this year Amount $ -		Balance, ending		Amount $ 3,035,082	Market price or net worth of equity (Note 2) Unit price (NT$) Total amount $ 63.23 $ 3,035,082	Market price or net worth of equity (Note 2) Unit price (NT$) Total amount $ 63.23 $ 3,035,082	Guarantee or pledge
	Shares 48,000,000		Shares -		Shares -		Shares 48,000,000	Shareholding % 100			Unit price (NT$) $ 63.23
													None

Note 1: The changes refer to the share of profit or loss or other comprehensive income of subsidiaries accounted for using equity method.

Note 2: The net worth of equity is calculated based on the financial statements of QIYI PRECISION METALS CO., LTD. and the Company’s shareholding.

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Yuen Chang Stainless Steel Co., Ltd.

Statement of Short-term Loans

December 31, 2025

Statement 5

Unit: NT$ Thousand

Category of loan and creditor	Balance, ending	Balance, ending	Term of loan	Annual interest rate (%)	Facility	Pledged or guarantee d
Letter of credit and credit loan Taishin International Bank The Export-Import Bank of the Republic of China The Shanghai Commercial & Savings Bank, Ltd. First Bank Mega Bank Bank of Taiwan Export bill negotiation E.SUN Bank The Shanghai Commercial & Savings Bank, Ltd. Total		$ 350,000 300,000 140,163 102,804 50,000 50,000 992,967 75,409 9,646 85,055 $ 1,078,022	December 30, 2025 ~ January 30, 2026 June 10, 2025 ~ June 12, 2026 October 15, 2025 ~ April 29, 2026 December 19, 2025 ~ March 30, 2026 December 31, 2025 ~ March 31, 2026 October 14, 2025 ~ February 11, 2026 November 6, 2025 ~ December 31, 2026 December 31, 2025 ~ January 5, 2026	0.62～4.43 4.12～4.45	$350,000 thousand $300,000 thousand US$5,000 thousand $150,000 thousand $200,000 thousand $50,000 thousand US$10,000 thousand US$4,000 thousand	- - Note Note Note Note - -

Note: Please refer to Note 26.

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Yuen Chang Stainless Steel Co., Ltd.

Statement of Short-Term Notes and Bills Payable

December 31, 2025

Statement 6

Unit: NT$ Thousand

Guarantor or accepting institution Taiwan Cooperative Bills Finance Corporation China Bills Finance Corporation Ta Ching Bills Finance Corporation Mega Bills Union Bank of Taiwan	Term of contract December 24, 2025 ~ January 23, 2026 December 12, 2025 ~ January 21, 2026 November 10, 2025 ~ January 8, 2026 December 26, 2025 ~ January 23, 2026 December 19, 2025 ~ February 9, 2026	Annual interest rate (%) 2.10～2.12		Amount		Carrying amount $ 100,000 80,000 80,000 60,000 40,000 $ 360,000	Pledged or guaranteed
			Issued amount $ 100,000 80,000 80,000 60,000 40,000 $ 360,000	Discount on unamortized short-term notes and bills payable $ - - - - - $ -
							- - - - -

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Yuen Chang Stainless Steel Co., Ltd. Statement of Accounts Payable December 31, 2025 Statement 7 Unit: NT$ Thousand Name of supplier Amount Related Party Ningbo Qiyi $ 5,453

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Yuen Chang Stainless Steel Co., Ltd. Statement of Long-term Loans December 31, 2025

Statement 8

Unit: NT$ Thousand

Creditorbank Termandrepaymentregulations Annual interest rate (%) Syndicate led by E.SUN Bank Revolving loan - Class A Revolving credit line due in May 2030 Revolving loan - Class B Revolving credit line due in May 2030 2.14～2.42 Bank SinoPac Revolving credit line due in September 2027 The Shanghai Commercial & Savings Bank, Ltd. Repayable in installments starting from June 2025. Less: Unamortized deferred sponsorship fees	Amount	Pledged or guaranteed Total $ 300,000 Land and buildings 350,000 Land and buildings 180,000 Land and buildings 105,000 Pledged bank deposits 2,681) $ 932,319	Remark
	Expired within one year Expired after one year $ - $ 300,000 - 350,000 - 180,000 60,000 45,000 - ( 2,681) ( $ 60,000 $ 872,319
			Note Note

Note: The syndicate consists of E.SUN Bank, Taiwan Cooperative Bank, Mega Bank, First Bank, Bank of Taiwan, Taishin International Bank, Taiwan Cooperative Bills Finance, and China Bills Finance.

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Yuen Chang Stainless Steel Co., Ltd. Statement of Operating Revenue 2025

Statement 9 Unit: NT$ Thousand Item Quantity (ton) Amount Stainless steel coils 約 105,602 $ 7,447,761 Others (Note) 16,429 7,464,190 Less: Sales returns and discounts ( 19,474 ) $ 7,444,716

Note: The individual balance is less than 10% of the amount under the Item.

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Yuen Chang Stainless Steel Co., Ltd.

Statement of Operating Costs

2025

Yuen Chang Stainless Steel Co., Ltd. Statement of Operating Costs 2025	Yuen Chang Stainless Steel Co., Ltd. Statement of Operating Costs 2025
Statement 10 Unit: Item Consumption of direct materials Raw materials, beginning Materials purchased this year Less: Raw materials, ending Consumables this year Direct Employees Manufacturing expenses Manufacturing costs Add: Goods in process, beginning Less: Goods in process, ending Cost of finished goods Add: Finished goods, beginning Less: Finished goods, ending Others		NT$ Thousand Amount
		$ 1,313,205 6,223,412 756,734 6,779,883 40,095 233,233 7,053,211 26,691 150,865 6,929,037 803,653 617,870 13,764 $ 7,128,584

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Yuen Chang Stainless Steel Co., Ltd.

Statement of Operating Expenses

2025

Statement 11

Unit: NT$ Thousand

Item Export expenses Salary expenditure Freight Commission expenditure Labor/national health insurance premium Insurance premium Depreciation Entertainment expenses Pension Others	Selling expenses Administrativ e expenses $ 227,159 $ - 18,053 45,521 21,663 - 3,749 - 2,081 3,556 165 216 2,143 1,434 1,312 1,182 964 1,720 11,574 14,992 $ 288,863 $ 68,621	R&D expenses $ - 3,800 - - 346 5 - - 216 101 $ 4,468	Total $ 227,159 67,374 21,663 3,749 5,983 386 3,577 2,494 2,900 26,667 $ 361,952

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Yuen Chang Stainless Steel Co., Ltd.

Summarization of Employee Benefit and Depreciation and Amortization Expenses by Function 2025 and 2024

Statement 12

Unit: NT$ Thousand

Employee benefit expenses Salary expenses Labor/national health insurance expenses Pension expenses Remuneration to directors Others employee benefit expenses Depreciation				2025		Total $ 116,087 12,835 4,623 8,189 11,067 $ 152,801 $ 57,059				2024
		Operating Cost $ 56,902 6,852 1,723 - 6,292 $ 71,769 $ 53,482		Operating expenses $ 59,185 5,983 2,900 8,189 4,775 $ 81,032 $ 3,577				Operating Cost $ 53,728 6,053 1,707 - 6,126 $ 67,614 $ 49,123		Operating expenses $ 55,210 5,428 2,765 8,026 4,595 $ 76,024 $ 4,327		Total
												$ 108,938 11,481 4,472 8,026 10,721 $ 143,638 $ 53,450

Note:

• I. The Company hired 189 employees and 182 employees in 2025 and 2024. Among them, 6 directors didn’t work as employees concurrently in both years.

• II. The average employee benefit expenses were NT$790 thousand and NT$771 thousand in 2025 and 2024, respectively.

• III. The average employee salary expenses were NT$634 thousand and NT$619 thousand in 2025 and 2024, respectively. Such expenses for 2025 increased by 2.4% compared to 2024.

• IV. The Company has established the Audit Committee. Therefore, no compensation to supervisors was paid.

• V. The Company's remuneration policy:

• Director

The Remuneration Committee proposes the remuneration to directors/supervisors based on their involvement in, and the value contributed by them to, the Company's operations, and then submits the proposal to the Board of Directors for resolution. According to the Articles of Incorporation, no more than 2% of the net profit before tax before deduction of the remuneration to employees and directors for the current year should be distributed to directors.

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2. Managers

The Remuneration Committee reviews and proposes the reasonable remuneration to them subject to their involvement in, and the value contributed by them to the Company's operations, and submits the proposal to the Board of Directors for discussion and approval. 3. Employees

The employee salary standards are adopted in reference to the salary market condition, and the Company's financial position and organizational structure. Meanwhile, according to the Articles of Incorporation, no less than 2% of the net profit before tax before deduction of the remuneration to employees and directors for the current year should be distributed to employees.

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