YEM CHIO CO., LTD. AND SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS
WITH INDEPENDENT AUDITORS' REPORT
DECEMBER 31, 2025 AND 2024

Address: 7F, No. 397, Xingshan Rd., Neihu Dist., Taipei City 114521, Taiwan (R.O.C.)
Telephone: (02)8170-6199

Notice to Readers

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

INDEPENDENT AUDITORS' REPORT TRANSLATED FROM CHINESE

The Board of Directors and Shareholders

Yem Chio Co., Ltd.

Opinion

We have audited the accompanying consolidated financial statements of Yem Chio Co., Ltd. and its subsidiaries (collectively referred to as the "Group"), which comprise the consolidated balance sheets as of December 31, 2025 and 2024, and the consolidated statements of comprehensive income, changes in equity and cash flows for the year ended December 31, 2025 and 2024, and the notes to the consolidated financial statements, including a summary of material accounting policies (collectively referred to as the "consolidated financial statements").

In our opinion, based on our audits and the reports of other auditors (please refer to the Other Matter), the accompanying consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and the Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group 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 opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the year ended December 31, 2025. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Valuation of inventory

The Group is mainly engaged in the manufacture, processing, and sales of packaging materials, including BOPP film, adhesives and polystyrene sheets, as well as land development and construction. The Group’s inventories were measured at the lower of cost and net realisable value. Considering the Group’s inventories were significant to the consolidated financial statements and the determination of net realizable value for the inventories involves judgements and estimates, we identified the evaluation of inventories as a key audit matter.

Our audit procedures including (but are not limited to) assessing the appropriateness of the management’s accounting policy for inventory evaluation; evaluating and testing the effectiveness of relevant internal control; sampling the inventory aging report by checking the inventory entry dates are consistent with relevant supportive documents; recalculating the inventory obsolescence loss based on the aging report; reviewing and calculating the reasonableness of the inventory net realizable value report; and participating in the annual inventory count to identify if there is obsolete or impaired inventory. For the inventory of land development and construction business, obtaining the valuation data in relation to the net realisable value of inventories to ascertain whether the data source, assumptions and methods adopted by the Group are reasonable. Testing data in order to check the reasonableness of the net realisable value of construction-in-progress and land held for building.

Please refer to Notes 4, 5 and 6(6) of the consolidated financial statements for the accounting policies, significant accounting estimates and the information about inventories, respectively.

Valuation of investment property

As of December 31, 2025 and 2024, the fair value of investment property was NT$2,411,173 thousand and NT$2,399,775 thousand, respectively, constituting 7% of total assets. The Group’s investment property is valued by external experts using the fair value model. Given that the valuation process is subject to significant assumptions on discount rate and future lease income and has material effect on the fair value measurement. We identified the evaluation of investment property as a key audit matter.

Our audit procedures including (but are not limited to) assessing the qualifications and independence of appointed external appraisers; obtaining and reviewing reasonableness of appraisal report, including valuation method and key appraisal assumptions and estimates, etc.; assessing reasonableness of the lease income and rental growth rate are reasonable by referencing to the market rental rate for the investment properties using the income approach.

Please refer to Notes 4, 5 and 6(10) of the consolidated financial statements for the accounting policies, significant accounting estimates and the information about investment property, respectively.

Other matter

We did not audit the financial statements of certain subsidiaries which were audited by other auditors. Therefore, our opinion expressed herein, insofar as it relates to the amounts included in respect of these subsidiaries, is based solely on the reports of the other auditors. Total assets of these subsidiaries amounted to NT$1,569,037 thousand and NT$1,728,606 thousand, constituting 4% and 5% of consolidated total assets as at December 31, 2025 and 2024, and net operating revenue amounted to NT$1,232,803 thousand and NT$2,738,331 thousand, constituting 9% and 17% of consolidated operating revenue for the year ended December 31, 2025 and 2024.

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

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

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

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

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

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

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

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

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

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

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

Others

We and other auditors have audited and expressed an unqualified opinion with other matter section on the parent company only financial statements of Yem Chio Co., Ltd. as of and for the years ended December 31, 2025 and 2024.

Liu, Jung Chin
Hsieh, Sheng-An
Ernst & Young, Taiwan
March 13, 2026

Notice to Readers

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

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

Yem Chio Co., Ltd. and Subsidiaries
Consolidated Balance Sheets
December 31, 2025 and 2024
(Expressed in thousands of New Taiwan Dollars)

Assets	Notes	December 31, 2025		December 31, 2024
		AMOUNT	%	AMOUNT	%
Current assets
1100	Cash and cash equivalents	6(1)	$ 2,829,813	8	$ 2,360,882	7
1110	Financial assets at fair value through profit or loss - current	6(2)	208,417	-	545,305	2
1130	Financial assets at fair value through other comprehensive income – current	6(3) and 8	1,699,929	5	1,422,985	4
1136	Financial assets at amortised cost - current	6(4) and 8	415,246	1	1,394,610	4
1150	Notes receivable, net	6(5) and 18	370,456	1	371,053	1
1170	Accounts receivable, net	6(5) + (18) + 7 and 8	2,498,889	7	2,196,257	6
1200	Other receivables		172,841	-	120,327	-
130X	Inventories	6(6) and 8	15,052,972	41	13,256,338	37
1410	Prepayments		395,399	1	451,904	1
1460	Non-current assets held for sale	6(7)	176,472	-	-	-
1470	Other current assets	8	238,557	1	212,549	1
11XX	Total current assets		24,058,991	65	22,332,210	63
Non-current assets
1510	Financial assets at fair value through profit or loss - non-current	6(2)	-	-	1,000	-
1517	Financial assets at fair value through other comprehensive income- non-current	6(3)	1,066,915	3	118,764	-
1535	Financial assets at amortised cost - non-current	6(4) and 8	28,026	-	22,567	-
1550	Investments accounted for under equity method	6(8)	953,519	3	1,043,936	3
1600	Property, plant and equipment, net	6(9) and 8	7,500,749	20	8,442,100	24
1755	Right-of-use assets	6(19)	286,437	1	315,287	1
1760	Investment property, net	6(10) + (19) and 8	2,411,173	7	2,399,775	7
1780	Intangible assets, net	6(11)	317,360	1	292,849	1
1840	Deferred income tax assets		156,469	-	157,489	1
1900	Other non-current assets	8	75,440	-	61,249	-
15XX	Total non-current assets		12,796,088	35	12,855,016	37
1XXX	Total assets		$ 36,855,079	100	$ 35,187,226	100

(Continued)

Yem Chio Co., Ltd. and Subsidiaries
Consolidated Balance Sheets
December 31, 2025 and 2024
(Expressed in thousands of New Taiwan Dollars)

Liabilities and Equity	Notes	December 31, 2025		December 31, 2024
		AMOUNT	%	AMOUNT	%
Current liabilities
2100	Short-term borrowings	6(12) and 8	$ 5,575,373	15	$ 6,055,610	17
2110	Short-term notes and bills payable	6(13)	400,000	1	50,000	-
2130	Current contract liabilities	6(17) and 7	432,811	2	476,432	2
2150	Notes payable		242,525	1	236,167	1
2170	Accounts payable		752,334	2	759,961	2
2200	Other payables		857,742	2	723,310	2
2230	Current income tax liabilities		42,069	-	104,414	-
2260	Liabilities directly associated with non-current assets held for sale	6(7)	138,402	-	-	-
2280	Lease liabilities - current	6(19)	25,070	-	40,641	-
2320	Current portion of long-term liabilities	6(14) and 8	5,243,302	14	4,124,158	12
2399	Other current liabilities		43,167	-	52,951	-
21XX	Total current liabilities		13,752,795	37	12,623,644	36
Non-current liabilities
2540	Long-term borrowings	6(14) and 8	8,836,060	24	8,078,152	23
2570	Deferred income tax liabilities		520,218	2	495,967	2
2580	Lease liabilities - non-current	6(19)	78,557	-	95,018	-
2600	Other non-current liabilities	6(15)	109,170	-	109,811	-
25XX	Total non-current liabilities		9,544,005	26	8,778,948	25
2XXX	Total liabilities		23,296,800	63	21,402,592	61
Equity attributable to owners of parent
	Share capital	6(16)
3110	Common stock		6,767,572	18	6,792,085	19
	Capital surplus	6(16)
3200	Capital surplus		2,761,420	8	2,755,697	8
	Retained earnings	6(16)
3310	Legal reserve		803,177	2	676,958	2
3320	Special reserve		631,140	2	560,736	2
3350	Unappropriated retained earnings		1,853,693	5	2,323,104	7
	Other equity interest
3400	Other equity interest		251,727	1	529,627	1
3500	Treasury stocks	6(16)	( 243,995) ( 1)		( 414,345) ( 1)
31XX	Equity attributable to owners of the parent		12,824,734	35	13,223,862	38
36XX	Non-controlling interest	6(16)	733,545	2	560,772	1
3XXX	Total equity		13,558,279	37	13,784,634	39
3X2X	Total liabilities and equity		$ 36,855,079	100	$ 35,187,226	100

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

Yem Chio Co., Ltd. and Subsidiaries
Consolidated Statements of Comprehensive Income
For the Years Ended December 31, 2025 and 2024
(Expressed in thousands of New Taiwan dollars, except for earnings per share)

Items		Notes	2025		2024
			AMOUNT	%	AMOUNT	%
4000	Net revenue	6(17) and 7	$ 13,276,075	100	$ 15,891,082	100
5000	Operating costs	6(6) + (20) and 7	( 11,245,372)	( 85)	( 13,265,074)	( 83)
5900	Net operating margin		2,030,703	15	2,626,008	17
	Operating expenses	6(15) + (18) + (19) and (20)
6100	Selling expenses		( 944,269)	( 7)	( 995,122)	( 6)
6200	General and administrative expenses		( 517,918)	( 4)	( 590,766)	( 4)
6300	Research and development expenses		( 46,691)	-	( 36,881)	-
6450	Expected credit (losses) gains	6(18)	( 8,678)	-	25,059	-
6000	Total operating expenses		( 1,517,556)	( 11)	( 1,597,710)	( 10)
6900	Operating profit		513,147	4	1,028,298	7
	Non-operating income and expenses
7100	Interest income		72,948	-	53,240	-
7010	Other income	6(9) + (19) + (21) and 7	193,425	1	206,980	1
7020	Other gains and losses	6(21)	( 3,273)	-	97,539	1
7050	Finance costs	6(21)	( 328,822)	( 2)	( 291,592)	( 2)
7060	Share of profit or loss of associates accounted for using the equity method	6(8)	( 17,866)	-	49,617	-
7000	Total non-operating income and expenses		( 83,588)	( 1)	115,784	-
7900	Net income before tax		429,559	3	1,144,082	7
7950	Income tax expense	6(22)	( 162,748)	( 1)	( 254,711)	( 1)
8200	Net Income		$ 266,811	2	$ 889,371	6
	Other comprehensive income (loss)
	Components of other comprehensive income that will not be reclassified to profit or loss
8311	Actuarial gains on defined benefit plans		($ 3,465)	-	$ 4,347	-
	Unrealised gains (losses) from equity instruments investments measured at fair value through other comprehensive income		144,564	1	603,502	3
8316	Share of other comprehensive income (loss) of associates which will not be reclassified subsequently to profit or loss		691	-	( 868)	-
8320	Other comprehensive (loss) income that will not be reclassified to profit or loss		141,790	1	606,981	3
	Components of other comprehensive income that will be reclassified to profit or loss
8361	Financial statements translation differences of foreign operations		( 83,316)	-	254,548	2
8367	Unrealised losses from investments in debt instruments measured at fair value through other comprehensive income		23,398	-	484	-
	Share of other comprehensive income (loss) of associates which may be reclassified subsequently to profit or loss		1,125	-	35,000	-
8370	Other comprehensive income (loss) that will be reclassified to profit or loss		( 58,793)	-	290,032	2
8300	Total other comprehensive income (loss) for the year		$ 82,997	1	$ 897,013	5
8500	Total comprehensive income for the year		$ 349,808	3	$ 1,786,384	11

(Continued)

Yem Chio Co., Ltd. and Subsidiaries
Consolidated Statements of Comprehensive Income
For the Years Ended December 31, 2025 And 2024
(Expressed in thousands of New Taiwan dollars, except for earnings per share)

			2025		2024
Items		Notes	AMOUNT	%	AMOUNT	%
Profit attributable to:
8610	Owners of the parent		$ 172,055	1	$ 816,889	6
8620	Non-controlling interests		94,756	1	72,482	-
	Total		$ 266,811	2	$ 889,371	6
Comprehensive income (loss) attributable to:
8710	Owners of the parent		$ 245,496	2	$ 1,697,286	11
8720	Non-controlling interests		104,312	1	89,098	-
	Total		$ 349,808	3	$ 1,786,384	11
Earnings per share (in dollars)		6(23)
9750	Basic earnings per share		$	0.26	$	1.27
9850	Diluted earnings per share		$	0.26	$	1.24

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

Yem Chio Co., Ltd. and Subsidiaries

Consolidated Statements of Changes in Equity

For the Years Ended December 31, 2025 and 2024

(Expressed in thousands of New Taiwan dollars)

Equity attributable to owners of the parent

	Capital	Retained Earnings	Other Equity Interest	Equity attributable to owners of the parent	Non-controlling interest	Total equity
Common stock	Certificate of entitlement to new shares from convertible bonds	Capital surplus	Legal reserve	Special reserve	Unappropriated retained earnings	Financial statements translation differences of foreign operations
2024
Balance at January 1, 2024	$ 6,582,467	$ 66,857	$ 2,718,738	$ 568,926	$ 511,756	$ 1,868,613
Net income	-	-	-	-	-	816,889
Other comprehensive income	-	-	-	-	-	3,479
Total comprehensive income	-	-	-	-	-	820,368
Appropriations and distribution of retained earnings for the year ended December 31, 2023
Cash dividends	-	-	-	-	-	( 650,688)
Legal reserve	-	-	-	108,032	-	( 108,032)
Special reserve	-	-	-	-	48,980	( 48,980)
Disposal of equity investment valued at fair value through other comprehensive income	-	-	-	-	-	441,823
Conversion of convertible corporate bonds	-	142,761	6,026	-	-	-
Conversion of certificates of bonds-to-share	209,618	( 209,618)	-	-	-	-
Stock options forfeited	-	-	12,589	-	-	-
From share of changes in equities of subsidiaries	-	-	( 79)	-	-	-
Adjustments for dividends received from parent company	-	-	18,423	-	-	-
Decrease in non-controlling interests	-	-	-	-	-	-
Balance at December 31, 2024	$ 6,792,085	$ -	$ 2,755,697	$ 676,958	$ 560,736	$ 2,323,104
2025
Balance at January 1, 2025	$ 6,792,085	$ -	$ 2,755,697	$ 676,958	$ 560,736	$ 2,323,104
Net income	-	-	-	-	-	172,055
Other comprehensive income	-	-	-	-	-	( 2,774)
Total comprehensive income	-	-	-	-	-	169,281
Appropriations and distribution of retained earnings for the year ended December 31, 2024
Cash dividends	-	-	-	-	-	( 663,487)
Stock dividends	132,697	-	-	-	-	( 132,697)
Legal reserve	-	-	-	126,219	-	( 126,219)
Special reserve	-	-	-	-	70,404	( 70,404)
Cancellation of treasury shares	( 157,210)	-	( 13,140)	-	-	-
Disposal of equity investment valued at fair value through other comprehensive income	-	-	-	-	-	354,115
From share of changes in equities of subsidiaries	-	-	440	-	-	-
Adjustments for dividends received from parent company	-	-	18,423	-	-	-
Increase in non-controlling interests	-	-	-	-	-	-
Balance at December 31, 2025	$ 6,767,572	$ -	$ 2,761,420	$ 803,177	$ 631,140	$ 1,853,693

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

Yem Chio Co., Ltd. and Subsidiaries
Consolidated Statements of Cash Flows
For the Years Ended December 31, 2025 and 2024
(Expressed in thousands of New Taiwan dollars)

	2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net income before tax	$ 429,559	$ 1,144,082
Adjustments
Adjustments to reconcile profit
Depreciation	535,829	600,820
Amortisation	1,157	965
Expected credit losses	8,678	( 25,059)
Net (gain) loss on financial assets at fair value through profit or loss	( 12,237)	( 128,801)
Interest expenses	328,822	291,592
Interest income	( 72,948)	( 53,240)
Share of profit or loss of associates accounted for using the equity method	( 22,636)	( 49,617)
Gain on disposal of property, plant and equipment	( 40,061)	( 6,691)
Gain on fair value adjustment of investment property	( 81,224)	-
Impairment of property, plant and equipment	-	226,263
Impairment of goodwill	35,298	-
Fair value gain on investment property	( 9,036)	( 83,602)
Employees' compensation	( 37)	7,097
Dividend income	( 120,543)	( 63,201)
Changes in operating assets and liabilities
Changes in operating assets
Notes receivable, net	10,476	( 17,593)
Accounts receivable, net	( 66,525)	117,543
Other receivables	( 46,051)	43,659
Financial assets at amortised cost	( 11,920)	( 44,562)
Inventories	( 853,842)	( 2,627,203)
Prepayments	62,286	36,877
Other current assets	( 25,866)	76,361
Other non-current assets	-	266
Changes in operating liabilities
Notes payable	6,359	( 31,263)
Contract liabilities	( 44,271)	( 322,584)
Accounts payable	( 85,696)	( 10,507)
Other payables	226,194	250,539
Other current liabilities	( 9,784)	( 64,610)
Other non-current liabilities	( 385)	( 4,910)
Cash inflow generated from (used in) operations	141,596	( 737,379)
Interest received	70,667	47,115
Dividend received	161,751	84,887
Interest paid	( 455,570)	( 388,711)
Income taxes paid	( 124,066)	( 168,907)
Net cash used in operating activities	( 205,622)	( 1,162,995)

(Continued)

Yem Chio Co., Ltd. and Subsidiaries
Consolidated Statements of Cash Flows
For the Years Ended December 31, 2025 and 2024
(Expressed in thousands of New Taiwan dollars)

	2025	2024
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of financial assets at fair value through profit or loss	( 3,072,727)	( 4,679,659)
Proceeds from disposal of financial assets at fair value through profit or loss	3,410,633	5,074,928
Acquisition of investments accounted for using equity method	113,135	-
Acquisition of financial assets at fair value through other comprehensive income	( 3,800,935)	( 2,172,606)
Proceeds from disposal of financial assets at fair value through other comprehensive income	2,738,052	2,540,312
Return of capital from an investee company under the equity method upon liquidation	-	5,060
(Decrease) increase in financial assets at amortised cost	990,145	( 611,536)
Acquisition of a subsidiary (deducted acquired cash and cash equivalents)	( 111,991)	16,337
Acquisition of property, plant and equipment	( 680,464)	( 444,640)
Proceeds from disposal of property, plant and equipment	115,517	29,302
Non-current assets held for sale	138,402	-
Acquisition of intangible assets	( 2,543)	( 821)
(Increase) decrease in other non-current assets	( 8,176)	6,453
Increase in other non-current liabilities	( 282)	( 8,695)
Net cash used in investing activities	( 171,234)	( 245,565)
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in short-term borrowings	( 574,435)	246,812
Decrease in short-term notes and bills payable	350,000	( 350,000)
Proceeds from long-term borrowings	10,060,418	8,256,939
Repayment of long-term borrowings	( 8,238,483)	( 5,187,280)
Repayment of corporate bonds payable	-	( 405)
Repayment of lease liabilities	( 44,492)	( 46,382)
Change in non-controlling interests	( 45,617)	( 153,971)
Payment of cash dividends	( 663,487)	( 650,688)
Net cash provided by financing activities	843,904	2,115,025
Effect of changes in foreign exchange rates	1,883	( 43,454)
Net increase in cash and cash equivalents	468,931	663,011
Cash and cash equivalents at beginning of year	2,360,882	1,697,871
Cash and cash equivalents at end of year	$ 2,829,813	$ 2,360,882

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

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements
For the Years Ended December 31, 2025 and 2024
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

History and organization

Yem Chio Co., Ltd. (the "Company") was incorporated as a company limited by shares under the provisions of the Company Act of the Republic of China (R.O.C.). The Company and its subsidiaries (collectively referred to as the "Group") are primarily engaged in researching, designing, manufacturing, processing, and sales of petrochemical and packaging materials, including BOPP film and adhesive tape, as well as land development and construction.

The Company had been listed as Second (TIGER) category securities on Gre Tai Securities Market since April, 2000, and had been listed as general securities since April, 2001. Since January 21, 2008, the Company had been listed on the Taiwan Stock Exchange.

Date and procedures of authorization of financial statements for issue

The consolidated financial statements were authorised for issuance by the Board of Directors on March 13, 2026.

Newly issued or revised standards and interpretations

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

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

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

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

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

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

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

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

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

The abovementioned standards and interpretations issued by IASB have not yet endorsed by FSC at the date when the Group's financial statements were authorized for issue, the local effective dates are to be determined by FSC. The Group assessed above standards and interpretations have no material impact on the Group.

A. Enhancing the comparability of the income statement

The income statement will classify income and expenses into five categories—operating, investing, financing, income taxes, and discontinued operations. The first three categories are newly introduced to improve the structure of the income statement. Entities will also be required to present new subtotals (including operating profit or loss) based on these definitions. By improving the structure of the income statement and requiring standardized subtotals, investors will have a consistent starting point when analyzing financial performance across entities, thereby making cross-company comparisons easier.

B. Increasing transparency of management performance measures

Entities will be required to disclose explanations of entity-specific performance metrics related to the income statement, referred to as Management Performance Measures (MPMs).

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

C. Useful aggregation of financial information

Application guidance will be provided to help entities determine whether particular financial information should be presented in the primary financial statements or in the notes. This change is expected to result in more detailed and decision-useful information. Entities will also be required to provide more transparent information on operating expenses to assist investors in identifying and understanding the information they use.

Summary of material accounting policies

The material accounting policies are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Statement of compliance

The consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers ("the Regulations"), IFRS, IASs, IFRIC and SIC, which are endorsed by FSC (collectively referred herein as the "IFRSs").

(2) Basis of preparation

The consolidated financial statements have been prepared on a historical cost basis, except for financial instruments, defined benefit liabilities and investment property that have been measured at fair value. The consolidated financial statements are expressed in thousands of New Taiwan Dollars ("NT$") unless otherwise stated.

(3) Basis of consolidation

Preparation principle of consolidated financial statements

Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if and only if the Group has:

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

A. power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee),
B. exposure, or rights, to variable returns from its involvement with the investee, and
C. the ability to use its power over the investee to affect its returns.

When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including:

A. the contractual arrangement with the other vote holders of the investee;
B. rights arising from other contractual arrangements;
C. the Group’s voting rights and potential voting rights.

The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control.

Subsidiaries are fully consolidated from the acquisition date, being the date on which the Company obtains control, and continue to be consolidated until the date that such control ceases. The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using uniform accounting policies. All intra-Group balances, income and expenses, unrealized gains and losses and dividends resulting from intra-group transactions are eliminated in full.

A change in the ownership interest of a subsidiary, without a change of control, is accounted for as an equity transaction.

Total comprehensive income of the subsidiaries is attributed to the owners of the parent and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

If the Group loses control of a subsidiary, it:

A. derecognises the assets (including goodwill) and liabilities of the subsidiary;
B. derecognises the carrying amount of any non-controlling interest;
C. recognises the fair value of the consideration received;
D. recognises the fair value of any investment retained;
E. reclassifies the parent’s share of components previously recognised in other comprehensive income to profit or loss, or transfer directly to retained earnings if required by other IFRSs; and
F. recognises any resulting difference in profit or loss.

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

The consolidated entities are listed as follows:

Name of investor	Name of subsidiary	Main business activities	Ownership (%)		Note
			December 31, 2025	December 31, 2024
Yem Chio Co., Ltd.	Yem Chio (BVI) Co., Ltd. (YEM CHIO)	Investment holdings	100	100
	ACHEM Technology Corporation	Manufacturing of adhesives and polystyrene sheets; investment holdings	100	100
	Yem Chio Distribution Co., Ltd.(Original Name:Xin Chio Global Co.,Ltd.)	Sales of wrapping materials and business of import and export	38.86	38.86	Note 3
	Yem Chio Hotel Co., Ltd. (Original Name:UINN Hotel)	Hotel management and related business	100	100
	Yem Chio Construction Co., Ltd. (Original Name:Wong Chio Development, Ltd.)	Undertaking civil engineering and hydraulic engineering	100	100
	King Sun New Tech Co., Ltd.	Solar power system engineering, manufacturing and sales of solar-related electronic equipment.	66.36	66.36	Note 4
YEM CHIO	Asia Plastics (BVI) Co., Ltd. (ASIA PLASTICS)	Investment holdings	45	45
	Wan Chio (BVI) Co., Ltd. (WAN CHIO)	Investment holdings	68.47	68.47
ACHEM Technology Corporation	ASIACHEM International Corporation	Investment holdings	100	100
	ACHEM Opto-Electronic Corporation	Manufacturing of electronic parts and components	100	100
	Valueline Investment Corporation	Investment holdings	100	100
	ACHEM Technology Holdings Limited	Investment of high technology industry	100	100
	Yem Chio Distribution Co., Ltd.	Sales of wrapping materials and business of import and export	22.54	22.54	Note 3
	Pantech Tape Co., Ltd.	Manufacturing and sales of various adhesive products	100	100
Yem Chio Distribution Co., Ltd.	Master Package (Shanghai)	Import and export trading of packaging materials	100	100
	Material Technology Co., Ltd.	Sales of various adhesiveproducts	100	100
	ACHEM Technology (Wuhan) Limited	Sales of various adhesiveproducts	100	100
	Victory Union IT Co., Ltd.	Sales of various adhesiveproducts	55.08	-	Note 9
	Star Ray Co., Ltd.	Sales of various adhesiveproducts	55.06	-	Note 10
	King Material Co., Ltd.	Sales of various adhesiveproducts	55.02	-	Note 11

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Name of investor	Name of subsidiary	Main business activities	Ownership (%)		Note
			December 31, 2025	December 31, 2024
ASIA PLASTICS	Achem Technology (Ningbo) Co., Ltd. (Ningbo Yem Chio Co., Ltd.)	Manufacturing and sales of adhesives and polystyrene sheets	100	100
WAN CHIO	Wan Chio Petrochemical (Jiangsu) Co., Ltd.	Discontinued operations	50.06	50.06	Note 8
ASIACHEM International Corporation	Fuzhou Fuda Plastic Products Co., Ltd.	Discontinued operations	-	-	Note 6
ACHEM Technology Holdings Limited	ACHEM Technology China	Investment in high technology industry	100	100
	ACHEM Technology Americas Ltd.	Investment in high technology industry	100	100
	ACHEM Technology (M) Sdn. Bhd.	Business of import, export and distribution	90	90
	ACHEM Technology (Vietnam) Ltd.	Manufacturing and sales of various adhesive products	100	100
	Wan Chio (BVI) Co., Ltd. (WAN CHIO)	Investment holdings	31.53	31.53
	ACHEM Technology (India) Ltd.	Discontinued operations	100	100	Note 1
	Asia plastics (BVI) CO., Ltd. (ASIA PLASTICS)	Investment holdings	55	55
ACHEM Technology China	ACHEM Technology (Chengdu) Limited	Manufacturing and sales of various adhesive products	100	100
	ACHEM Technology (Dongguan) Adhesive Products Co., Ltd.	Manufacturing and sales of various adhesive products	100	100
	Wanchio Adhesive Product (Jiangsu) Co., Ltd.	Sales of various adhesive products	100	100
	Landmart Global Limited (LANDMART)	Investment holdings	-	-	Note 2
	ACHEM Technology (Shanghai) Limited	Manufacturing and sales of various adhesive products	100	100	Note 2
ACHEM Technology Americas Ltd.	ACHEM Industry America Inc.	Manufacturing and sales of various adhesive products	100	100
Wanchio Adhesive Product (Jiangsu)	Foshan Inder Adhesive Product Co., Ltd.	Manufacturing and sales of various adhesive products	62.30	62.30	Note 7
	Wan Chio Petrochemical (Jiangsu) Co., Ltd.	Discontinued operations	23.78	23.78	Note 8

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Name of investor	Name of subsidiary	Main business activities	Ownership (%)		Note
			December 31, 2025	December 31, 2024
ACHEM Opto-Electronic Corporation	AOE Holding Limited	Investment in high technology industry	100	100
Ningbo Yem Chio Co., Ltd.	Wan Chio Petrochemical (Jiangsu) Co., Ltd.	Discontinued operations	26.16	26.16	Note 8
King Sun New Tech Co., Ltd.	Hong Yi Energy Co., Ltd.	Renewable energy power generation industry	100	100
	Hong How Technology Co., Ltd.	Renewable energy power generation industry	100	100
	Hong Er Technology Co., Ltd.	Renewable energy power generation industry	100	100
	Hong Wu Technology Co., Ltd.	Renewable energy power generation industry	100	100
	Hong Ba Technology Co., Ltd.	Renewable energy power generation industry	50	50
	Hong Ning International Co., Ltd.	Renewable energy power generation industry	100	100
	Hong Cheng Technology Co., Ltd.	Renewable energy power generation industry	100	100
	Hong Kai Technology Co., Ltd.	Renewable energy power generation industry	100	100
	Hong He Energy Co., Ltd.	Renewable energy power generation industry	100	100
	Hong Chang Technology Co., Ltd.	Renewable energy power generation industry	100	100
	RongCheng Energy Co., Ltd.	Renewable energy power generation industry	100	100	Note 7
Victory Union It Co., Ltd.	Mingyin New Materials Co., Ltd.	Sales of various adhesiveproducts	100	-
	Liansheng Technology Vietnam Co., Ltd.	Sales of various adhesiveproducts	100	-
	Victory Union IT (Thailand) Co., Ltd.	Sales of various adhesiveproducts	100	-	Note 12
Mingyin New Materials Co., Ltd.	SU ZHOU MING JU Trade Co., Ltd.	Sales of various adhesiveproducts	100	-
Star Ray Co., Ltd.	Xiamen Lianju Plastic Material Co., Ltd.	Sales of various adhesiveproducts	100	-
King Material Co., Ltd.	Suzhou KING Material Co., Ltd.	Sales of various adhesiveproducts	100	-

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Note 1: ACHEM Technology (India) Ltd. underwent liquidation in May 2017.

Note 2: LANDMART initiated liquidation proceedings in July 2024 and completed the liquidation process in September 2024. The 100% equity stake in ACHEM Technology (Shanghai) previously held by LANDMART was transferred to ACHEM Technology China, which is the 100% shareholder of LANDMART.

Note 3: As of December 31, 2025, the Company and ACHEM Technology Corporation held 38.86% and 22.54% shareholding of Yem Chio Distribution Co., Ltd., respectively, which constituted over 50% shareholding.

Note 4: On January 2, 2024, the Company acquired 27.5% shareholding of King Sun New Tech Co., Ltd. for a cash consideration of $72,105, and participated in its cash capital increase of $80,000. Since that date, the cumulative shareholding has exceeded 50%, making the investee company a subsidiary of our company. Please refer to Notes 6(24) for details.

Note 5: In response to the Group’s organizational restructuring, the Group transferred the equity of Foshan Inder held by ACHEM Technology China to Wanchio Adhesive Product (Jiangsu) in the first quarter of 2024.

Note 6: Fuzhou Fuda completed the liquidation and deregistration process in December 2024.

Note 7: RongCheng was approved for establishment in December 2024.

Note 8: Wan Chio Petrochemical completed the liquidation in December 2024.

Note 9: In July 2025, Yem Chio Distribution acquired 55.08% shareholding of Victory Union IT Co., Ltd. for a cash consideration of $110,109. Making the investee company a indirect subsidiary of our company. Please refer to Notes 6(24) for details.

Note 10: In July 2025, Yem Chio Distribution acquired 55.06% shareholding of Star Ray Co., Ltd. for a cash consideration of $34,421. Making the investee company a indirect subsidiary of our company. Please refer to Notes 6(24) for details.

Note 11: In August 2025, Yem Chio Distribution acquired 55.02% shareholding of King Material Co., Ltd. for a cash consideration of $39,674. Making the investee company a indirect subsidiary of our company. Please refer to Notes 6(24) for details.

Note 12: Victory Union IT (Thailand) Co., Ltd. was approved for establishment in January 2025.

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Related parties in the consolidated financial statements:

| Names and relationship of related parties |
| --- |
| Associate
Winda Opto-Electronics Co., Ltd.
Yanrun Development Co., Ltd.(Note) |
| Other related party - companies with significant influence over Foshan Inder Adhesive Product Co., Ltd.
Foshan Plastics Group Co., Ltd. |
| Other related parties
Li, Zhi-Xian
Yang, Jun-Wei
Yan, Ming-Hui |
| Key management
Li, Qi-Zheng
Li, Shu-Wei |

Note : Yanrun Development was liquidated in March 2024.

Subsidiaries that have non-controlling interests that are material to the Group : None.

(4) Foreign currency transactions

The Group's consolidated financial statements are presented in NT$, which is also the Company's functional currency.

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

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

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

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

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

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

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

(5) Translation of financial statements in foreign currency

The assets and liabilities of foreign operations are translated into NT$ at the closing rate of exchange prevailing at the reporting date and their income and expenses are translated at an average rate for the period. The exchange differences arising on the translation are recognised in other comprehensive income. On the disposal of a foreign operation, the cumulative amount of the exchange differences relating to that foreign operation, recognised in other comprehensive income and accumulated in the separate component of equity, is reclassified from equity to profit or loss when the gain or loss on disposal is recognised. On the partial disposal of foreign operations that result in a loss of control, loss of significant influence but retain partial equity is considered disposal.

On the partial disposal of a subsidiary that includes a foreign operation that does not result in a loss of control, the proportionate share of the cumulative amount of the exchange differences recognised in other comprehensive income is re-attributed to the non-controlling interests in that foreign operation. In partial disposal of an associate or joint arrangement that includes a foreign operation that does not result in a loss of significant influence or joint control, only the proportionate share of the cumulative amount of the exchange differences recognised in other comprehensive income is reclassified to profit or loss.

Any goodwill and any fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and expressed in its functional currency.

(6) Current and non-current distinction

An asset is classified as current when:

A. The Group expects to realize the asset, or intends to sell or consume it, in its normal operating cycle
B. The Group holds the asset primarily for the purpose of trading
C. The Group expects to realize the asset within twelve months after the reporting period
D. The asset is cash or cash equivalent unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

All other assets are classified as non-current.

A liability is classified as current when:

A. The Group expects to settle the liability in its normal operating cycle
B. The Group holds the liability primarily for the purpose of trading
C. The liability is due to be settled within twelve months after the reporting period
D. The Group does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting period. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

All other liabilities are classified as non-current.

(7) Cash and cash equivalents

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

(8) Financial instruments

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

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

A. Financial instruments: Recognition and Measurement

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

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

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

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Financial asset measured at fair value through profit or loss

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

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

Financial asset measured at fair value through other comprehensive income

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

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

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

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

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

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

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

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

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

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

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

Financial assets measured at amortised cost

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

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

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

Such financial assets are subsequently measured at amortised cost and is not part of a hedging relationship. A gain or loss is recognised in profit or loss when the financial asset is derecognised, through the amortisation process or in order to recognise the impairment gains or losses.

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

(a) purchased or originated credit-impaired financial assets. For those financial assets, the Group applies the credit-adjusted effective interest rate to the amortised cost of the financial asset from initial recognition.

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

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

B. Impairment of financial assets

The Group recognises a loss allowance for expected credit losses on debt instrument investments measured at fair value through other comprehensive income and financial asset measured at amortised cost. The loss allowance on debt instrument investments measured at fair value through other comprehensive income is recognised in other comprehensive income and not reduce the carrying amount in the balance sheet.

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

(a) an unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes;

(b) the time value of money; and

(c) reasonable and supportable information that is available without undue cost or effort at the reporting date about past events, current conditions and forecasts of future economic conditions.

The loss allowance is measures as follow:

(a) At an amount equal to 12-month expected credit losses: the credit risk on a financial asset has not increased significantly since initial recognition or the financial asset is determined to have low credit risk at the reporting date. In addition, the Group measures the loss allowance at an amount equal to lifetime expected credit losses in the previous reporting period, but determines at the current reporting date that the credit risk on a financial asset has increased significantly since initial recognition is no longer met.

(b) At an amount equal to the lifetime expected credit losses: the credit risk on a financial asset has increased significantly since initial recognition or financial asset that is purchased or originated credit-impaired financial asset.

(c) For trade receivables or contract assets arising from transactions within the scope of IFRS 15, the Group measures the loss allowance at an amount equal to lifetime expected credit losses.

(d) For lease receivables arising from transactions within the scope of IFRS 16, the Group measures the loss allowance at an amount equal to lifetime expected credit losses.

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

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

C. Derecognition of financial assets

A financial asset is derecognised when:

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

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

D. Financial liabilities and equity

Classification between liabilities or equity

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

Equity instruments

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

Compound instruments

The Group evaluates the terms of the convertible bonds issued to determine whether it contains both a liability and an equity component. Furthermore, the Group assesses if the economic characteristics and risks of the put and call options contained in the convertible bonds are closely related to the economic characteristics and risk of the host contract before separating the equity element.

For the liability component excluding the derivatives, its fair value is determined based on the rate of interest applied at that time by the market to instruments of comparable credit status. The liability component is classified as a financial liability measured at amortised cost before the instrument is converted or settled.

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

For the embedded derivative that is not closely related to the host contract (for example, if the exercise price of the embedded call or put option is not approximately equal on each exercise date to the amortised cost of the host debt instrument), it is classified as a liability component and subsequently measured at fair value through profit or loss unless it qualifies for an equity component. The equity component is assigned the residual amount after deducting from the fair value of the instrument as a whole the amount separately determined for the liability component. Its carrying amount is not remeasured in the subsequent accounting periods. If the convertible bond issued does not have an equity component, it is accounted for as a hybrid instrument in accordance with the requirements under IFRS 9 Financial Instruments.

Transaction costs are apportioned between the liability and equity components of the convertible bond based on the allocation of proceeds to the liability and equity components when the instruments are initially recognised.

On conversion of a convertible bond before maturity, the carrying amount of the liability component being the amortised cost at the date of conversion is transferred to equity.

Financial liabilities

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

Financial liabilities at amortised cost

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

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

Derecognition of financial liabilities

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

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

(9) Fair value measurement

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

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

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

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

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

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

(10) Inventories

Inventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted-average method. The cost of finished goods and work in progress comprises raw materials, direct labour, other direct costs and related production overheads allocated based on normal operating capacity. It excludes borrowing costs. The item by item approach is used in applying the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and applicable variable selling expenses.

Except for recognising profit or loss using the completed contract method, costs are stated at acquisition cost basis during construction. In accordance with IFRSs, the related interest expense is capitalised.

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

(11) Investments accounted for using the equity method

The Group’s investment in its associate is accounted for using the equity method other than those that meet the criteria to be classified as held for sale. An associate is an entity over which the Group has significant influence.

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

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

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

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

The Group determines at each reporting date whether there is any objective evidence that the investment in the associate is impaired. If this is the case the Group calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value and recognises the amount in the ‘share of profit or loss of an associate’ in the statement of comprehensive income. In determining the value in use of the investment, the Group estimates:

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

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

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

Upon loss of significant influence over the associate, the Group measures and recognises any retaining investment at its fair value. Any difference between the carrying amount of the associate upon loss of significant influence and the fair value of the retaining investment and proceeds from disposal is recognised in profit or loss.

(12) Property, plant and equipment

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

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

Buildings	1-60 years
Machinery and equipment	1-25 years
Transportation equipment	1-12 years
Office equipment	1-15 years

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

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

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

(13) Investment property

An investment property is stated initially at its cost and measured subsequently using the fair value model. A gain or loss arising from a change in the fair value of investment property is recognised in profit or loss.

(14) Leases

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

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

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

Group as a lessee

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

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

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

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

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

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

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

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

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

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

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

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

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Group as a lessor

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

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

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

(15) Intangible assets

Goodwill arises in a business combination accounted for by applying the acquisition method. Goodwill shall be tested annually for impairment, and recognised based on the cost less accumulated depreciation. Impairment loss of goodwill previously recognised in profit or loss shall not be reversed.

For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash-generating units, or groups of cash-generating units, that is/are expected to benefit from the synergies of the business combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes. Goodwill is monitored at the operating segment level.

Other intangible assets, mainly acquired special technology, are amortised using the straight line method over 3 years.

(16) Impairment of non-financial assets

The Group assesses at the end of each reporting period whether there is any indication that an asset in the scope of IAS 36 Impairment of Assets may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Group estimates the asset's recoverable amount. An asset's recoverable amount is the higher of an asset's or cash-generating unit's ("CGU") fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

For assets excluding goodwill, an assessment is made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. If such indication exists, the Group estimates the asset’s or cash-generating unit’s recoverable amount. A previously recognised impairment loss is reversed only if there has been an increase in the estimated service potential of an asset which in turn increases the recoverable amount. However, the reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years.

A cash generating unit, or groups of cash-generating units, to which goodwill has been allocated is tested for impairment annually at the same time, irrespective of whether there is any indication of impairment. If an impairment loss is to be recognised, it is first allocated to reduce the carrying amount of any goodwill allocated to the cash generating unit (group of units), then to the other assets of the unit (group of units) pro rata on the basis of the carrying amount of each asset in the unit (group of units). Impairment losses relating to goodwill cannot be reversed in future periods for any reason.

An impairment loss of continuing operations or a reversal of such impairment loss is recognised in profit or loss.

(17) Treasury shares

Own equity instruments which are reacquired (treasury shares) are recognised at cost and deducted from equity. Any difference between the carrying amount and the consideration is recognised in equity.

(18) Revenue recognition

A. Sales of goods

(a) Sales are recognised when control of the products has transferred, being when the products are delivered to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, or the Group has objective evidence that all criteria for acceptance have been satisfied.

(b) A receivable is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

B. Land development and resale

(a) The Group develops and sells residential properties. Revenue is recognised when control over the property has been transferred to the customer. The properties have generally no alternative use for the Group due to contractual restrictions. However, an enforceable right to payment does not arise until legal title has passed to the customer. Therefore, revenue is recognised at a point in time when the legal title has passed to the customer.

(b) The revenue is measured at an agreed upon amount under the contract. The consideration is due when legal title has been transferred. While deferred payment terms may be agreed in rare circumstances, the deferral never exceeds twelve months. The transaction price is therefore not adjusted because the contract does not include a significant financing component.

(19) Borrowing costs

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

(20) Post-employment benefits

All regular employees of the Company and its domestic subsidiaries are entitled to a pension plan that is managed by an independently administered pension fund committee. Fund assets are deposited under the committee's name in the specific bank account and hence, not associated with the Company and its domestic subsidiaries. Therefore, fund assets are not included in the Group's consolidated financial statements. Pension benefits for employees of the overseas subsidiaries and the branches are provided in accordance with the respective local regulations.

For the defined contribution plan, the Company and its domestic subsidiaries will make a monthly contribution of no less than 6% of the monthly wages of the employees subject to the plan. The Company recognises expenses for the defined contribution plan in the period in which the contribution becomes due. Overseas subsidiaries and branches make contribution to the plan based on the requirements of local regulations.

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

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

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

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

(21) Income taxes

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

Current income tax

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

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

Deferred tax

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

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

A. Where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss;

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

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

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

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

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

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

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

According to the temporary exception in the International Tax Reform – Pillar Two Model Rules (Amendments to IAS 12), information about deferred tax assets and liabilities related to Pillar Two income tax will neither be recognized nor be disclosed.

Significant accounting judgements, estimates and assumptions

The preparation of the Group’s consolidated financial statements require management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities, at the end of the reporting period. However, uncertainty about these assumption and estimate could result in outcomes that require a material adjustment to the carrying amount of the asset or liability affected in future periods.

(1) Judgement

None.

(2) Estimates and assumptions

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

A. Inventories

As inventories are stated at the lower of cost and net realisable value, the Group must determine the net realisable value of inventories on balance sheet date using judgements and estimates. The Group evaluates the amounts of normal inventory consumption and obsolete inventories on balance sheet date, and writes down the cost of inventories to the net realisable value. Such an evaluation of inventories is principally based on the demand for the products within the specified period in the future. Therefore, there might be material changes to the evaluation.

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

B. Investment property

The fair value valuation of investment property relies on the real estate appraisers to determine future cash flows, discount rate and profit or loss which is likely to accrue or incur afterwards based on the experts' judgement, utilisation of the assets and industrial characteristics. Any changes of economic circumstances or estimates due to the change of the Group's strategy might affect the value of investment property.

Contents of significant accounts

(1) Cash and cash equivalents

Assets items	December 31, 2025	December 31, 2024
Cash on hand and revolving funds	$2,893	$4,911
Checking accounts and demand deposits	2,687,443	2,150,023
Time deposits	139,477	205,948
Total	$2,829,813	$2,360,882

The Group transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.

The Group's cash that was pledged to others as collateral were classified to financial assets at amortised cost. Details are provided in Note 6(4) and 8.

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

Assets items	December 31, 2025	December 31, 2024
Current items:
Financial assets mandatorily measured as at fair value through profit or loss:
Wealth management product	$-	$44,780
Capital guarantee products	-	335,882
Listed stocks	208,417	164,643
Total	$208,417	$545,305
Non-Current items:
Financial assets mandatorily measured as at fair value through profit or loss:
Funds	$-	$1,000

Information relating to credit risk of financial assets are provided in Note 12(4).

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

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

	December 31, 2025	December 31, 2024
Current items:
Equity instruments
Listed stocks	$1,643,845	$1,155,230
Valuation adjustments	56,084	267,755
Total	$1,699,929	$1,422,985
Non-current items:
Debt instruments
Bank debenture	$1,031,497	$65,226
Valuation adjustments	29,424	(6,669)
Subtotal	1,060,921	58,557
Equity instruments
Listed stocks	$281	$44,076
Unlisted shares	95,597	95,598
Valuation adjustments	(89,884)	(79,467)
Subtotal	5,994	60,207
Total	$1,066,915	$118,764

The Group has selected to classify equity investments that are considered to be strategic investments as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $1,705,923 and $1,483,192 as of December 31, 2025 and 2024, respectively.

In consideration of the Group's investment strategy adjustments in 2025 and 2024, the disposal of equity investments with fair values of $2,738,052 and $2,540,312, respectively. The cumulative gains reclassified from other equity to retained earnings amounted to $354,115 and $441,823, respectively.

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

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

	Year Ended December 31
	2025	2024
Related to investments held at the end of year	$104,936	$52,768
Related to investments derecognized during the year	5,698	10,433
Dividend income recognised during the year	$110,634	$63,201

Details of the Group’s financial assets at fair value through other comprehensive income pledged to others as collateral are provided in Note 8. Information relating to credit risk is provided in Note 12(4).

(4) Financial assets at amortised cost

	December 31, 2025	December 31, 2024
Current items:
Restricted demand deposits	$389,183	$402,688
Restricted time deposits	26,063	991,922
Total	$415,246	$1,394,610
Non-current items:
Restricted demand deposits	$16,223	$10,799
Restricted time deposits	11,803	11,768
Total	$28,026	$22,567

As of December 31, 2025 and 2024, the demand deposits under current items were restricted domestic pre-sold house project trust funds, which may not be drawn during the term of the trust.

Details of the Group’s financial assets at amortised cost pledged to others as collateral are provided in Note 8. Information relating to credit risk is provided in Note 12(4).

(5) Notes and accounts receivable

	December 31, 2025	December 31, 2024
Notes receivable	$370,526	$371,053
Less: Loss allowance	(70)	-
Total	$370,456	$371,053
Accounts receivable	$2,614,632	$2,301,676
Less: Loss allowance	(115,743)	(105,419)
Total	$2,498,889	$2,196,257

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

The ageing analysis of accounts receivable and notes receivable that were past due but not impaired is as follows:

	December 31, 2025		December 31, 2024
	Notes receivable	Accounts receivable	Notes receivable	Accounts receivable
Not past due	$2,242,754	$370,526	$1,902,762	$371,053
Overdue:
Up to 30 days	215,517	-	230,045	-
31 to 90 days	79,190	-	94,146	-
91 to 180 days	19,051	-	16,301	-
Over 180 days	58,120	-	58,422	-
Less: Loss allowance	(115,743)	(70)	(105,419)	-
Total	$2,498,889	$370,456	$2,196,257	$371,053

The above ageing analysis was based on past due date.

The Group's accounts receivable pledged to others as collateral are provided in Note 8. Loss allowance and information relating to credit of risk are provided in Note 6(18) and Note 12(4).

(6) Inventories

	December 31, 2025	December 31, 2024
Packaging material sales channel business:
Raw materials and supplies	$722,543	$797,463
Work-in-progress	316,135	312,289
Finished goods	334,772	320,313
Merchandise	293,273	220,788
Inventories in transit	61,557	59,753
Subtotal	1,728,280	1,710,606
Land development & construction business:
Construction-in-progress	5,287,545	4,448,547
Land held for building	7,444,228	6,922,029
Real estate held for sale	554,955	56,738
Prepayments of land	29,096	108,333
Subtotal	13,315,824	11,535,647
Renewable energy business:
Raw materials and supplies	2,165	5,202
Merchandise	6,703	4,883
Subtotal	8,868	10,085
Total	$15,052,972	$13,256,338

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

The cost of inventories recognised in expenses amounts to $11,245,372 and $13,265,074 for the years ended December 31, 2025 and 2024, including the loss (reversal gain) of net realizable value of inventories of $7,645 and $(24,932), respectively. The reversal is due to the volatility in the raw materials and actively dealing with obsolescence inventory.

Amount of borrowing costs capitalised as part of inventory were $133,080 and $112,585 and the range of rates for such capitalisation were 1.96%-3.02% and 2.14%-3.14% for the years ended December 31, 2025 and 2024, respectively.

Inventories that were pledged to others as collateral is provided in Note 8.

(7) Non-current assets held for sale

	December 31, 2025	December 31, 2024
Property, plant and equipment-Machinery	$176,472	$-
Non-current assets held for sale	$176,472	$-
Advance receipts	$138,402	$-
Liabilities directly associated with non-current assets held for sale	$138,402	$-

On March 3,2025, the company entered into a sale agreement for the disposal of the BOPP film production lines of Changbin Industrial Zone, and the property is expected to be disposed of within the next 12 months. Therefore, in March 2025, property, plant and equipment in the amount of $206,124 was reclassified to non-current assets held for sale. As of December 31,2025, the third installment of $138,042 received has been classified under liabilities directly associated with non-current assets held for sale.

(8) Investments accounted for using the equity method

Details are listed below:

Investees	December 31, 2025		December 31, 2024
	Amount	Ownership %	Amount	Ownership %
Investments in associates:
Winda Opto- Electronics Co., Ltd.	$952,605	30.43%	$1,049,880	31.42%
Yanrun Development Co., Ltd.	914	40.00%	(5,944)	40.00%
Total	$953,519		$1,043,936

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

The information of the associate that is material to the Group is as follows:

Company name: Winda Opto-Electronics Co., Ltd.

Principal place of business: China

Judgments in determining that the Group only has significant influence: The Group holds the less than 50% voting rights and is unable to lead the critical activities of Winda Opto-Electronics Co., Ltd. Therefore, the Group has no control of Winda Opto-Electronics Co., Ltd and only has significant influence over Winda Opto-Electronics Co., Ltd.

The material associate of the Group, Winda Opto-Electronics Co., Ltd., had a publicly quoted market price starting from December 27, 2022. Its fair value as of December 31, 2025 and 2024 were $4,093,907 and $3,626,690, respectively.

Reconciliation of the associate’s summarized financial information presented to the carrying amount of the Company’s interest in the associate as below:

	December 31, 2025	December 31, 2024
Current assets	$1,930,401	$2,564,929
Non-current assets	1,761,253	1,131,032
Current liabilities	(55,545)	(102,265)
Non-current liabilities	(503,936)	(251,155)
Equities	$3,132,173	$3,342,541
Share in associate’s net assets	30.43%	31.42%
Subtotal	953,181	1,050,456
Negative goodwill	(576)	(576)
Carrying amount of the associate	$952,605	$1,049,880
	Year Ended December 31
---	---	---
	2025	2024
Revenue	$907,912	$983,343
Profit (Loss) for the year from continuing operations	$(81,249)	$143,266
Other comprehensive income, net of tax	4,041	111,395
Comprehensive (loss) income	$(77,208)	$254,661
Dividends received from the associate	$41,208	$21,686

The Group’s investment in Yanrun Development is not individually material and has been liquidated. Therefore, the Group will no longer disclose the aggregate financial information.

As of December 31, 2025 and 2024, the above associates had no contingent liabilities, capital commitments or guarantees.

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

(9) Property, plant and equipment

	Land	Buildings	Machinery and equipment	Transportation equipment	Office equipment	Other equipment	Construction in progress and equipment awaiting examination	Total
January 1, 2025
Cost	$2,765,359	$4,802,299	$8,292,841	$201,476	$442,110	$251,861	$317,346	$17,073,292
Accumulated depreciation and impairment	-	(2,026,973)	(5,894,344)	(163,801)	(328,218)	(217,856)	-	(8,631,192)
Total	$2,765,359	$2,775,326	$2,398,497	$37,675	$113,892	$34,005	$317,346	$8,442,100
January 1, 2025	$2,765,359	$2,775,326	$2,398,497	$37,675	$113,892	$34,005	$317,346	$8,442,100
Additions	-	2,769	15,817	4,956	1,995	3,141	651,786	680,464
Disposals	(51,398)	(11,635)	(2,829)	(1,627)	(123)	(7,844)	-	(75,456)
Transfers	-	32,643	173,772	4,826	33,093	492	(244,826)	-
Reclassifications	-	(1,963)	(289)	-	-	(45)	(908)	(3,205)
Acquisition of a subsidiary	-	8,410	651	6,161	417	1,172	-	16,811
Other	(712,531)	(78,785)	(176,009)	-	-	-	(60,015)	(1,027,340)
Depreciation	-	(121,644)	(332,165)	(11,327)	(24,641)	(5,510)	-	(495,287)
Exchange differences	(13,143)	(19,135)	(7,630)	61	35	(69)	2,543	(37,338)
December 31, 2025	$1,988,287	$2,585,986	$2,069,815	$40,725	$124,668	$25,342	$665,926	$7,500,749
December 31, 2025
Cost	$1,988,287	$4,678,892	$7,041,830	$209,817	$473,067	$107,195	$665,926	$15,165,014
Accumulated depreciation and impairment	-	(2,092,906)	(4,972,015)	(169,092)	(348,399)	(81,853)	-	(7,664,265)
Total	$1,988,287	$2,585,986	$2,069,815	$40,725	$124,668	$25,342	$665,926	$7,500,749
January 1, 2024
Cost	$2,746,663	$4,376,404	$7,990,117	$196,120	$397,424	$244,186	$272,117	$16,223,031
Accumulated depreciation and impairment	-	(1,810,609)	(5,428,145)	(157,345)	(300,615)	(140,166)	-	(7,836,880)
Total	$2,746,663	$2,565,795	$2,561,972	$38,775	$96,809	$104,020	$272,117	$8,386,151
January 1, 2024	$2,746,663	$2,565,795	$2,561,972	$38,775	$96,809	$104,020	$272,117	$8,386,151
Additions	-	10,395	58,401	6,225	4,547	6,384	358,688	444,640
Disposals	(8,621)	(7,162)	(5,529)	(515)	(231)	(553)	-	(22,611)
Transfers	-	41,779	285,003	4,514	39,074	2,280	(372,650)	-
Reclassifications	7	810	5,098	-	6	-	52,426	58,347
Acquisition of a subsidiary	7,135	258,120	199	-	3	-	4,569	270,026
Depreciation	-	(134,155)	(369,509)	(11,698)	(26,679)	(17,011)	-	(559,052)
Impairment loss	-	-	(164,459)	-	-	(61,804)	-	(226,263)
Exchange differences	20,175	39,744	27,321	374	363	689	2,196	90,862
December 31, 2024	$2,765,359	$2,775,326	$2,398,497	$37,675	$113,892	$34,005	$317,346	$8,442,100
December 31, 2024
Cost	$2,765,359	$4,802,299	$8,292,841	$201,476	$442,110	$251,861	$317,346	$17,073,292
Accumulated depreciation and impairment	-	(2,026,973)	(5,894,344)	(163,801)	(328,218)	(217,856)	-	(8,631,192)
Total	$2,765,359	$2,775,326	$2,398,497	$37,675	$113,892	$34,005	$317,346	$8,442,100

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Components of building that have different useful lives are main building structure, air conditioning units and elevators, which are depreciated over 60 years, 8 years and 10 years, respectively.

Due to intense industry competition and changes in product demand, the Group plans to sell the thin film production line. After evaluation in the 2024, an impairment loss of $164,459 is expected to be recognized for the related real estate, plant, and equipment. In addition, considering the operational adjustment of a subsidiary, the Group intends to change the classification of a building. Therefore, the entire amount of leasehold improvements related to the building will be fully impaired, amounting to $61,804. The total impairment loss of $226,263 has been recognized in the consolidated statement of comprehensive income.

Amount of borrowing costs capitalised as part of property, plant and equipment were $1,704 and $1,843, and the range of interest rates for such capitalisation were both 2.00% for the years ended December 31, 2025 and 2024.

In June 2011, ACHEM Technology Corporation revalued its assets in accordance with the laws and regulations. The gross revaluation increment in the amount of $569,967, net of provision for land revaluation increment tax of $228,975, was recorded as “Unrealised revaluation increment” in the amount of $340,992, under other equity adjustments. The Company recognised the “Unrealised revaluation increment” into special reserve amounting to $170,769 in proportion to shares held.

From 2010 to 2022, ACHEM Technology Corporation gradually acquired the agricultural land located in Rui-Hu Section, Yangmei District, Taoyuan City, in the amount of $82,339, which was registered under the names of the Group’s employees and has been fully mortgaged to ACHEM Technology Corporation.

Information about the property, plant and equipment that were pledged to others as collaterals are provided in Note 8.

(10) Investment property

The Group’s investment property mainly comprises office buildings and plant located in Neihu District, Zhongzheng District, Taipei City and Shanghai, China. The Group earns rental income from leasing and the lease terms are between 1 to 7 years.

	December 31, 2025	December 31, 2024
At January 1	$2,399,775	$2,294,881
Exchange differences	2,362	21,292
Gain on fair value adjustments	9,036	83,602
At December 31	$2,411,173	$2,399,775

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

	Year Ended December 31
	2025	2024
Rental income from investment property	$30,683	$51,496
Less: Direct operating expenses arising from the investment property that generated rental income during the year	(9,273)	(10,341)
Direct operating expenses arising from the investment property that did not generate rental income during the year	(513)	(493)
Total	$20,897	$40,662

As of December 31, 2025 and 2024, the related assumptions are as follows:

The location, valuation method, appraisal firm, appraiser and appraisal date are shown below:

	December 31, 2025	December 31, 2024
Object	Office building and plant	Office building and plant
Location	Neihu District, Zhongzheng District, Taipei City and Shanghai, China	Neihu District, Zhongzheng District, Taipei City and Shanghai, China
Valuation method	Income approach	Income approach
Appraisal firm	PANASIA Real Estate Appraisers Firm	PANASIA Real Estate Appraisers Firm
Appraiser	YANG, MIN-AN	YANG, MIN-AN
Effective date for appraisal	December 31, 2025	December 31, 2024

The information on the average leasing rate for the years ended December 31, 2025 and 2024, changes in income generated in the past, and comparison between local rents and rents for objects similar to the Group's office buildings and plant is provided in the table below:

	Year Ended December 31
	2025	2024
Estimated rents (in dollars/per ping /monthly)	$710~1,430	$730~1,413
Local rents and rent quotes for similar objects	Approximate to estimated rents	Approximate to estimated rents
Income	$30,683	$51,496
Average leasing rates	50%~100%	89%~100%

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

The fair value of the Group's office buildings and plants is measured using the discounted cash flow analysis of income approach. Valuation is based on local rents and rents of similar objects, which are used to determine the annual increase range in the rents. Net rental income for the next 10 years is estimated based on idling loss. The estimated net rental income plus the ending disposal value is the future cash inflow, which is calculated to the appraisal date by using appropriate discount rate. Future cash outflow is estimated based on the Company's current operations and possible future changes and future cash outflow refers to expenses directly related to operations, such as land value tax, house tax, insurance fees, management fees and repair expense that were actually incurred for the year.

Discount rate range is set in the table below. Discount rates are based on the interest rate for a two-year deposit of a small amount, as posted by the Chunghwa Post Co. Ltd., plus 0.75 percentage points; while the discount rates used by the Group's China subsidiaries are based on the rate of 10 years national debt issued by the Bank of China. Risk premium is determined based on liquidity, risk, value increment and the difficulty of management.

	December 31, 2025	December 31, 2024
Discount rates	2.48%~8.86%	2.43%~8.67%

The information on the Group's investment property is provided in Note 12(7).

Information about the investment property that was pledged to others as collateral is provided in Note 8.

(11) Intangible assets

	Goodwill	Others	Total
January 1, 2025	$278,274	$14,575	$292,849
Addition	-	2,543	2,543
Amortisation	-	(1,157)	(1,157)
Impairment	(35,298)	-	(35,298)
Business combinations	66,280	-	66,280
Exchange differences	(7,857)	-	(7,857)
December 31, 2025	$301,399	$15,961	$317,360
	Goodwill	Others	Total
January 1, 2024	$170,976	$14,694	$185,670
Addition	-	821	821
Amortisation	-	(965)	(965)
Business combinations	95,661	21	95,682
Exchange differences	11,637	4	11,641
December 31, 2024	$278,274	$14,575	$292,849

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Amount of amortisation on intangible assets are as follows:

	Year Ended December 31
	2025	2024
Administrative expenses	$1,157	$965

Goodwill allocated to the cash-generating units of material packaging department:

	December 31, 2025	December 31, 2024
ACHEM Industry America Inc.	$68,738	$111,893
King Sun New Tech Co., Ltd.	95,661	95,661
Yem Chio Distribution Co., Ltd.	70,720	70,720
Victory Union IT Co., Ltd.	36,080	-
Star Ray Co., Ltd.	10,528	-
King Material Co., Ltd.	19,672	-
Total	$301,399	$278,274

Goodwill is allocated to the cash-generating units identified by the Group. The recoverable amount of all cash-generating units has been determined based on value-in-use calculations. These calculations use pre-tax cash flow projections based on financial budgets approved by the management covering a five-year period.

In 2025, one of the storage facility of ACHEM Industry America Inc. ceased operations, resulting in a decrease in the expected future cash flows of the related cash-generating unit. Following an impairment assessment, the Group recognized an impairment loss of $35,574 on the goodwill allocated to the cash-generating unit.

The recoverable amount of all cash-generating units calculated using the value-in-use exceeded their carrying amount, so goodwill was not impaired. The key assumptions used for value-in-use calculations are gross profit margin, growth rate and discount rate. Management determined budgeted gross margin based on past performance and its expectations of market development. The weighted average growth rates used are consistent with the forecasts included in industry reports. The discount rates used are pre-tax and reflect specific risks relating to the relevant operating segments.

(12) Short-term borrowings

	December 31, 2025	December 31, 2024
Unsecured bank borrowings	$3,961,616	$1,957,486
Secured bank borrowings	1,613,757	4,098,124
Total	$5,575,373	$6,055,610

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

	December 31, 2025	December 31, 2024
Range of the interest rates	1.99%~5.34%	1.83%~7.80%

As of December 31, 2025 and 2024, details of assets pledged as collateral for short-term borrowings are provided in Note 8.

(13) Short-term bills payable

	December 31, 2025	December 31, 2024
Commercial paper	$400,000	$50,000
Range of the interest rates	2.09%~2.16%	2.10%

(14) Long-term borrowings

	December 31, 2025	December 31, 2024
Long-term bank borrowings
Secured borrowings	$12,140,156	$10,317,310
Unsecured borrowings	1,939,206	1,885,000
Subtotal	14,079,362	12,202,310
Less: Current portion - within one year or one operating cycle	(5,243,302)	(4,124,158)
Total	$8,836,060	$8,078,152
Range of the interest rates	1.72%~3.50%	1.72%~3.16%

A. In October 2020, the Company entered into a syndicated loan agreement with a syndicated banking group consisting of Land Bank of Taiwan and others for a period of 5 years. The Company is allowed to settle the borrowings and use the working capital if the total amount is within the scope of $1.59 billion pursuant to the agreement. The primary terms of the agreement are as follows:

(a) Tranche A: Non-revolving line of $1,100,000.
(b) Tranche B: Non-revolving line of $390,000.
(c) Tranche C: Non-revolving line of $100,000.
(d) The Company’s revolving credit facility is subject to the following terms and financial covenants:

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

i. The Company shall pledge land serial No. 4 and 5, Section 1, Fuduxin section, Xinzhuang District, New Taipei City as collateral for tranche B and C.
ii. The Company on each annual consolidated financial statements is required to maintain the following financial ratios:
Liability ratio (total liabilities/consolidated tangible net worth) of not higher than 300%; interest coverage ((income before tax + depreciation + amortisation + interest expense)/interest expense) of at least 150%; consolidated tangible net worth of not less than $7 billion.

(e) The amount drawn was fully repaid in September 2024.

B. In June 2024, the Company entered into a syndicated loan agreement with First Commercial Bank. The primary terms of the agreement are as follows:

(a) Tranche A: Ten-year non-revolving line of $1,715,000.
(b) Tranche B: Five-year revolving line of $1,885,000.
(c) The Company’s revolving credit facility is subject to following terms and financial covenants:
The company was required to provide the land, factory buildings, and ancillary engineering facilities in the Changbin Industrial Zone as collateral for the credit facility. Additionally, a negative pledge agreement has been signed, committing that the machinery equipment and related ancillary equipment placed within the collateral for this project will not be used to establish pledges or mortgages for other creditors.
(d) As of December 31, 2025 and 2024, the amounts drawn were $3,600,000 for both years.

C. In November 2021, ACHEM Technology Corporation entered into a syndicated loan agreement with Hua Nan Commercial Bank, and in July 2024, an additional loan agreement was signed. The primary terms of the agreement are as follows:

(a) Tranche A: Ten-year non-revolving line of $1,680,000. The facility can be drawn at one time or multiple times.
(b) Tranche B: Five-year revolving line of $2,000,000.
(c) The Company shall pledge 12 lots at Yangmei District, Taoyuan City and plants located in the lots as collateral.
(d) As of December 31, 2025 and 2024, the amounts drawn were $3,411,200 and $3,545,600, respectively.

D. In September 2023, Victory Union IT Co., Ltd. entered into a syndicated loan agreement with E.SUN Commercial Bank. The primary terms of the agreement are as follows:

(a) Tranche A: Three-year line of $35,000. The facility can be drawn at multiple times.
(b) As of December 31, 2025, the amounts drawn were $35,000.

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

E. In February 2025, Victory Union IT Co., Ltd. entered into a syndicated loan agreement with Taiwan Business Bank. The primary terms of the agreement are as follows:

(a) Tranche A: Six-year (including a one-year grace period) line of $20,000. The facility is available for a single drawdown.
(b) As of December 31, 2025, the amounts drawn were $20,000.

F. In April 2023, Star Ray Co., Ltd. entered into a syndicated loan agreement with Taiwan Business Bank. The primary terms of the agreement are as follows:

(a) Tranche A: Five-year (including a one-year grace period) line of $6,000. The facility is available for a single drawdown.
(b) As of December 31, 2025, the amounts drawn were $6,000.

G. In January 2025, Star Ray Co., Ltd. entered into a syndicated loan agreement with Taiwan Business Bank. The primary terms of the agreement are as follows:

(a) Tranche A: Six-year (including a one-year grace period) line of $10,000. The facility is available for a single drawdown.
(b) As of December 31, 2025, the amounts drawn were $10,000.

H. There was no violation of the loan covenant as of December 31, 2025 and 2024.

I. In addition to the collaterals provided as stated in Note 8, as of December 31, 2025, the Group had issued guarantee notes totalling $26,442,124 for the bank loans.

J. The Group’s borrowings should be paid in full by July 2034 at the latest in accordance with the contracts.

(15) Post-employment benefits

The Company and its domestic subsidiaries have a defined benefit pension plan in accordance with the Labor Standards Law, covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Law. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company and its domestic subsidiaries contribute monthly an amount equal to 2% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company and its domestic subsidiaries would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Group will make contributions to cover the deficit by next March.

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

	December 31, 2025	December 31, 2024
Present value of defined benefit obligations	$258,047	$286,715
Fair value of plan assets	(168,671)	(196,941)
Net defined benefit liability	$89,376	$89,774

Movements in net defined benefit liabilities are as follows:

	Present value of defined benefit obligations	Fair value of plan assets	Net defined benefit liability
Balance at January 1, 2025	$286,715	$(196,941)	$89,774
Current service cost	918	-	918
Interest expense (income)	4,331	(2,959)	1,372
Subtotal	291,964	(199,900)	92,064
Remeasurements:
Return on plan assets	-	(13,936)	(13,936)
Effects of Changes in Financial Assumptions	2,524	-	2,524
Experience adjustments	14,877	-	14,877
Subtotal	17,401	(13,936)	3,465
Total	309,365	(213,836)	95,529
Pension fund contribution	-	(6,153)	(6,153)
Paid pension	(51,318)	51,318	-
Balance at December 31, 2025	$258,047	$(168,671)	$89,376
	Present value of defined benefit obligations	Fair value of plan assets	Net defined benefit liability
---	---	---	---
Balance at January 1, 2024	$279,704	$(184,901)	$94,803
Current service cost	970	-	970
Interest expense (income)	3,356	(2,218)	1,138
Subtotal	284,030	(187,119)	96,911
Remeasurements:
Return on plan assets	-	(17,985)	(17,985)
Effects of Changes in Financial Assumptions	(4,488)	-	(4,488)
Experience adjustments	18,126	-	18,126
Subtotal	13,638	(17,985)	(4,347)
Total	297,668	(205,104)	92,564
Pension fund contribution	-	(2,790)	(2,790)
Paid pension	(10,953)	10,953	-
Balance at December 31, 2024	$286,715	$(196,941)	$89,774

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

The Bank of Taiwan was commissioned to manage the Fund of the Company's and domestic subsidiaries' defined benefit pension plan in accordance with the Fund's annual investment and utilisation plan and the "Regulations for Revenues, Expenditures, Safeguard and Utilisation of the Labor Retirement Fund" (Article 6: The scope of utilisation for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-the-counter, or private placement equity securities, investment in domestic or foreign real estate securitization products, etc.). With regard to the utilisation of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings is less than aforementioned rates, government shall make payment for the deficit after being authorised by the Regulator. The Company and its domestic subsidiaries have no right to participate in managing and operating that fund and hence the Company and its domestic subsidiaries are unable to disclose the classification of plan asset fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as of December 31, 2025 and 2024 is given in the Annual Labor Retirement Fund Utilisation Report announced by the government.

The principal actuarial assumptions used were as follows:

	Year Ended December 31
	2025	2024
Discount rate	1.3%	1.50%~1.60%
Future salary increases	2.00%~3.00%	2.00%~3.00%

For the years ended December 31, 2025 and 2024, assumptions regarding future mortality rate were both estimated in accordance with the 6th Taiwan Standard Ordinary Experience Mortality Table, respectively. Future mortality rate of the Company and domestic subsidiaries was set based on the improved Taiwan's published annuity table.

Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis was as follows:

	Discount rate		Future salary increases
	Increase 0.25%	Decrease 0.25%	Increase 0.25%	Decrease 0.25%
December 31, 2025
Effect on present value of defined benefit obligation	$(2,966)	$3,035	$2,367	$(2,326)
December 31, 2024
Effect on present value of defined benefit obligation	$(3,508)	$3,591	$2,842	$(2,791)

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

The sensitivity analysis above was arrived at based on one assumption which changed while the other conditions remain unchanged. In practice, more than one assumption may change all at once. The method of analysing sensitivity and the method of calculating net pension liability in the balance sheet are the same.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the previous period.

Expected contributions to the defined benefit pension plans of the Group for the year ending December 31, 2026 amounted to $2,496.

As of December 31, 2025, the weighted average duration of that retirement plan is 5 years.

Effective July 1, 2005, the Company and its domestic subsidiaries have established a defined contribution pension plan (the "New Plan") under the Labor Pension Act (the "Act"), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company and its domestic subsidiaries contribute monthly an amount based on 6% of the employees' monthly salaries and wages to the employees' individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment.

The Company's China subsidiaries have a defined contribution plan. Monthly contributions to an independent fund administered by the government in accordance with the pension regulations in the People's Republic of China (PRC) are based on certain percentage of employees' monthly salaries and wages. Other than the monthly contributions, the Group has no further obligations.

The pension costs under the defined contribution pension plan of the Company and local subsidiaries for the years ended December 31, 2025, and 2024 were $32,896 and $33,923, respectively.

The contributions to pension costs under the local employment act of the overseas subsidiaries for the years ended December 31, 2025, and 2024 were $40,394 and $36,270, respectively.

(16) Equities

A. Common stock

As of December 31, 2025 and 2024, the Company's authorized capital were both $10,000,000 (including reserve for issuance of employee share options of $40,000), consisting of 1,000,000 thousand shares of ordinary stock, and the paid-in capital were $6,767,572 and $6,792,085 with a par value of $10 (in dollars) per share, divided into 676,757 thousand shares and 679,209 thousand shares. Each share has one voting right and a right to receive dividends.

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Movements in the number of the Company's ordinary shares (include bond conversion entitlement certificates and deduct treasury stocks) outstanding in thousand shares for the years ended December 31, 2025, and 2024 are as follows:

	December 31, 2025	December 31, 2024
At January 1	645,064	630,788
Conversion of convertible corporate bonds	-	14,276
Stock dividends	13,270	-
Shares of the parent company held by subsidiaries	(368)	-
At December 31	657,966	645,064

For the year ended December 31, 2024, convertible bonds amounting to $149,900 in total par value were requested for conversion into 14,276 thousand ordinary shares.

B. Capital surplus

	December 31, 2025	December 31, 2024
Share premium	$1,774,117	$1,816,327
Stock options	4,863	4,863
Others	982,440	934,507
Total	$2,761,420	$2,755,697

According to the Group Act, the capital reserve shall not be used except for making good the deficit of the Group. When a Company incurs no loss, it may distribute the capital reserves related to the income derived from the issuance of new shares at a premium or income from endowments received by the Company. The distribution could be made in cash or in the form of dividend shares to its shareholders in proportion to the number of shares being held by each of them.

C. Treasury shares

(a) As of December 31, 2025 and 2024, the Group held treasury shares were $243,995 and $414,345, respectively, divided into 18,791 thousand and 34,144 thousand shares, respectively.

On August 12, 2025, the company's Board of Directors resolved to retire 15,721 thousand treasury shares with a par value of NT$10 per share. Following the retiremen, the Company's paid-in capital amounted to $6,767,572. The effective date of the retiremen was September 8, 2025.

(b) Pursuant to the R.O.C. Securities and Exchange Act, the number of shares bought back as treasury share should not exceed 10% of the number of the Group's issued and outstanding shares and the amount bought back should not exceed the sum of retained earnings, paid-in capital in excess of par value and realised capital surplus.

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

(c) Pursuant to the R.O.C. Securities and Exchange Act, treasury shares should not be pledged as collateral and is not entitled to dividends before it is reissued.

(d) Pursuant to the R.O.C. Securities and Exchange Act, treasury shares should be reissued to the employees within five years from the reacquisition date and shares not reissued within the five-year period are to be retired. Treasury shares to enhance the Company's credit rating and the stockholders' equity should be retired within six months of acquisition.

(e) Details of the Company's common stock held by the subsidiaries as at December 31, 2025 is as follows:

Name of company holding the shares	Reason for reacquisition	Number of Shares (thousand shares)	Carrying amount
YEM CHIO	Investment	17,159	$223,108
ACHEM Technology Holdings Limited	Investment	1,218	15,838
Valueline Investment Corporation	Investment	414	5,049
Total		18,791	$243,995

(f) Details of the Company's common stock held by the subsidiaries as at December 31, 2024 is as follows:

Name of company holding the shares	Reason for reacquisition	Number of Shares (thousand shares)	Carrying amount
YEM CHIO	Investment	16,822	$223,108
ACHEM Technology Holdings Limited	Investment	1,194	15,838
Valueline Investment Corporation	Investment	406	5,049
Total		18,422	$243,995

D. Retained earnings and dividend policies

(a) In accordance with the Company's Articles of Incorporation, the annual net profit should be used initially to pay all taxes and to cover any accumulated deficit; 10% of the annual net profit should be set aside as legal reserve; and setting aside an additional special reserve pursuant to Article 41 of ROC Securities Exchange Act. The remainder, if any, shall be distributed which will be proposed by the Board of Directors and approved by the stockholders. If the aforementioned purposes or reasons of setting aside special reserve no longer apply, the Company should reverse and recognise such special reserve as distributable, and be distributed in accordance with this Article. The Company authorises the Board of Directors to distribute earnings in cash or dividends and bonuses from capital surplus by the special resolution; and in addition thereto a report of such distribution shall be submitted to the shareholders during their meeting.

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

(b) As the Company operates in a mature industry and is in the stable profit stage with sound financial structure, it has a steady dividend pay out ratio policy. According to the policy, after setting aside legal and special reserve, the remainder shall be appropriated as dividends, and cash dividends shall account for at least 10% of the total dividends distributable.

(c) Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the balance of the reserve exceeds 25% of the Company’s paid-in capital.

(d) In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.

(e) The amounts previously set aside by the Company as special reserve on initial application of IFRSs in accordance with Jin-Guan-Zheng-Fa-Zi Letter No. 1010012865, dated April 6, 2012, shall be reversed proportionately when the relevant assets are used, disposed of or reclassified subsequently. Such amounts are reversed upon disposal or reclassified if the assets are investment property of land, and reversed over the use period if the assets are investment property other than land.

(f) The Company’s appropriations of 2023 earnings for cash dividends had been approved through majority vote by the Board of Directors on March 14, 2024, and has been approved by shareholders on June 21, 2024. The appropriations of 2023 earnings were as follows:

	Year ended December 31,
	2023
	Amount	Dividend per share (in dollars)
Legal reserve	$108,032
Reversal of special reserve	48,980
Cash dividends	650,688	$1.00
Total	$807,700

(g) The Company’s appropriations of 2024 earnings for cash dividends had been approved through majority vote by the Board of Directors on March 14, 2025, and has been approved by shareholders on June 20, 2025. The appropriations of 2024 earnings were as follows:

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

	Year ended December 31, 2024
	Amount	Dividend per share (in dollars)
Legal reserve	$126,219
Special reserve	70,404
Cash dividends	663,487	$1.00
Stock dividends	132,697	0.20
Total	$992,807

Please refer to Note 6(20) on employee remuneration and directors' remuneration.

(h) Event after the balance sheet date

The appropriation of 2025 earnings had been proposed by the Board of Directors on March 13, 2026. Details are as follows:

	Year ended December 31, 2025
	Amount	Dividends per share (in dollars)
Special reserve	$52,340
Legal reserve	5,845
Cash dividends	473,730	$0.70
Total	$531,915

As of March 13, 2026, the Company's distribution of 2025 earnings, apart from cash dividends resolved by the Board of Directors and only requiring reporting to the shareholders' meeting, other distribution have not yet been resolved at the shareholders' meeting.

E. Non-controlling interests

	Year Ended December 31
	2025	2024
Beginning balance	$560,772	$709,783
Profit attributable to non-controlling interests	94,756	72,482
Other comprehensive income, attributable to non-controlling interests:
Exchange differences resulting from translating the financial statements of a foreign operation	9,556	16,616
Others	68,461	(238,109)
Ending balance	$733,545	$560,772

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

(17) Operating revenue

A. Disaggregation of revenue

The Group’s revenue from contracts with customers during the years ended December 31, 2025 and 2024 can be segmented by major product lines as follow:

	Year ended December 31, 2025
	Tape manufacturing business segment	Packaging materials business segment	Real estate business segment	Specialty chemical business segment	Renewable energy business segment	Total
Total segment revenue	$11,501,477	$1,911,283	$1,041,968	$562,653	$403,365	$15,420,746
Inter-segment revenue	(2,140,411)	-	-	(4,027)	(233)	(2,144,671)
Revenue from external customer contracts	$9,361,066	$1,911,283	$1,041,968	$558,626	$403,132	$13,276,075
Revenue recognition point:
At a point in time	$9,361,066	$1,911,283	$1,041,968	$558,626	$403,132	$13,276,075
Gradually satisfy over time	-	-	-	-	-	-
Total	$9,361,066	$1,911,283	$1,041,968	$558,626	$403,132	$13,276,075
	Year ended December 31, 2024
---	---	---	---	---	---	---
	Tape manufacturing business segment	Packaging materials business segment	Real estate business segment	Specialty chemical business segment	Renewable energy business segment	Total
Total segment revenue	$13,168,493	$1,436,198	$2,961,758	$472,008	$418,123	$18,456,580
Inter-segment revenue	(2,558,365)	-	(163)	(6,942)	(28)	(2,565,498)
Revenue from external customer contracts	$10,610,128	$1,436,198	$2,961,595	$465,066	$418,095	$15,891,082
Revenue recognition point:
At a point in time	$10,610,128	$1,436,198	$2,961,595	$465,066	$418,095	$15,891,082
Gradually satisfy over time	-	-	-	-	-	-
Total	$10,610,128	$1,436,198	$2,961,595	$465,066	$418,095	$15,891,082

B. Contract balances

The Group has recognised the following revenue-related contract liabilities:

Yem Chio Co., Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements (Continued)

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

	December 31, 2025	December 31, 2024
Contract liabilities - Advance sales receipts	$99,398	$115,035
Contract liabilities - Pre-sold house	333,413	361,397
Total	$432,811	$476,432

For the years ended December 31, 2025 and 2024, revenue recognised that was included in the contract liability balance at the beginning of the year amounted to $242,802 and $524,134, respectively.

(18)Expected credit losses

	Year ended December 31
	2025	2024
Operating expenses - Expected credit losses
Notes receivable	$-	$-
Accounts receivable	(8,678)	25,059
Total	$(8,678)	$25,059

Please refer to Note 12(4) for more details on credit risk.

B. The Group measures the loss allowance of its account receivables at an amount equal to lifetime expected credit losses. The Group used the loss rates calculated based on historical and timely information to assess the default possibility of accounts receivable. As of December 31, 2025 and 2024, the provision matrix are as follows:

	Individual	Group			Total
		Not past due	Up to 90 days past due	Over 90 days past due
December 31, 2025
Expected loss rate	100%	0.02%~1.78%	0.02%~100%	0.02%~100%
Carrying amount	$66,496	$2,242,754	$277,542	$27,840	$2,614,632
Loss allowance	66,496	10,040	26,717	12,490	115,743
	Individual	Group			Total
		Not past due	Up to 90 days past due	Over 90 days past due
December 31, 2024
Expected loss rate	100%	0.02%~2.34%	0.02%~97.68%	0.02%~100%
Carrying amount	$67,605	$1,902,762	$310,781	$20,528	$2,301,676
Loss allowance	67,605	6,850	26,627	4,337	105,419

Note: The Group's notes receivable were not past due.

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

C. The movements in loss allowance for notes and accounts receivable for the years ended December 31, 2025 and 2024 are as follows:

	Notes receivable	Accounts receivable
At January 1, 2025	$-	$105,419
Provision (reversal) of impairment loss	-	8,678
Write off	-	(403)
Acquisition of a subsidiary	70	5,173
Exchange differences	-	(3,124)
At December 31, 2025	$70	$115,743
	Notes receivable	Accounts receivable
At January 1, 2024	$-	$134,309
Provision (reversal) of impairment loss	-	(25,059)
Write off	-	(5,192)
Exchange differences	-	1,361
At December 31, 2024	$-	$105,419

(19) Lease

A. Group as a lessee

The Group leases various assets including land, buildings as well as machinery and equipment. Rental contracts are typically made for periods of 2 to 50 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.

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

(a) Right-of-use assets

	December 31, 2025	December 31, 2024
Land - Taiwan	$57,616	$61,178
Land use right - China and Vietnam	188,015	189,767
Buildings and structures	40,442	64,342
Transport equipment	364	-
Total	$286,437	$315,287

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

For the years ended December 31, 2025 and 2024, the Group's additions to right-of-use assets amounting to $7,116 and $21,887, respectively.

The Group leases land with lease terms of 20 years in Taiwan Science Park. The lease payments will be adjusted every 2 years on the basis of changes in announced land value prices.

Land use rights are contracts signed by the Group for land use rights in China and Vietnam. The lease terms are 44-50 years. The aforementioned land use rights have been paid in full at the inception of the lease.

(b) Lease liabilities

	December 31, 2025	December 31, 2024
Current	$25,070	$40,641
Non-current	78,557	95,018
Lease liabilities	$103,627	$135,659

Interest expenses on lease liabilities, recognised for the years ended December 31, 2025 and 2024, are provided in Note 6(21)C Finance costs. For the maturity analysis of lease liabilities are provided in Note 12(5) Liquidity Risk Management.

	Year ended December 31
	2025	2024
Land - Taiwan	$3,562	$3,771
Land use right - China and Vietnam	4,218	4,516
Buildings and structures	32,671	33,481
Transport equipment	91	-
Total	$40,542	$41,768

(d) Income and costs relating to leasing activities

	Year ended December 31
	2025	2024
The expense relating to short-term leases	$11,703	$10,177

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

(e) Cash outflow relating to leasing activities

For the years ended December 31, 2025 and 2024, the Group’s total cash outflows for leases amounting to $56,195 and $56,897, respectively.

(f) Other information relating to leasing activities

Extension and termination options

When determining the lease terms, the Group takes into account all facts and circumstances that create economic incentives to exercise the option to renew the lease. The lease term will be reassessed when a significant event occurs in assessing the exercise of the option to renew the lease.

B. Group as a lessor

Please refer to Note 6(10) for details on the Group’s owned investment properties and investment properties held by the Group as right-of-use assets. Leases of owned investment properties are classified as operating leases as they do not transfer substantially all the risks and rewards incidental to ownership of underlying assets.

The Group leases various assets including land and buildings. Rental contracts are typically made for periods of 1 to 10 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.

For the years ended December 31, 2025 and 2024, the Group recognised rent income in the amount of $36,729 and $58,300, respectively, based on the operating lease agreement, which does not include variable lease payments.

The maturity analysis of the lease payments under the operating leases is as follows:

	December 31, 2025	December 31, 2024
2025	$-	$19,682
2026	26,636	13,995
2027	16,099	5,635
2028	13,419	3,992
2029	9,918	1,800
After 2030	3,229	1,200
Total	$69,301	$46,304

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

(20) The Group's employee benefits, depreciation and amortisation expenses incurred for the years ended December 31, 2025 and 2024 are as follows:

	Year ended December 31
	2025			2024
	Operation costs	Operation expenses	Total	Operation costs	Operation expenses	Total
Employee benefits expense
Wages and salaries	$ 810,755	$ 558,408	$ 1,369,163	$ 854,898	$ 594,726	$ 1,449,624
Labor and health insurance	55,746	37,341	93,087	54,295	39,545	93,840
Pension	46,298	29,282	75,580	43,999	28,022	72,021
Other employee benefit expenses	98,237	41,749	139,986	98,938	40,295	139,233
Depreciation	465,636	70,193	535,829	514,742	86,078	600,820
Amortisation	-	1,157	1,157	-	965	965

Under the Company's Articles of Incorporation, the current year's earnings, if any, shall first be used to offset prior years' operating losses. For the remainder, if any, at least 0.5% shall be distributed as employees' compensation and the Board of Directors is authorised to determine the distribution of directors' remuneration based on the usual industry standard but shall not exceed 1%. Have the profit distributable as employees' compensation in the form of shares or in cash; after a resolution has been adopted by a majority vote at a meeting of the board of directors attended by two-thirds of the total number of directors; and in addition thereto a report of such distribution is submitted to the shareholders' meeting.

For the years ended December 31, 2025 and 2024, employees' compensation was accrued at $1,103 and $5,749, respectively; while no directors' remuneration was accrued. The aforementioned amount was recognised in salary expenses.

The employees' compensation for the year ended December 31, 2024 resolved by the Board of Directors amounted to $4,609. The difference of $1,140 between the amount resolved by the Board of Directors and the amount of $5,749 recognised in the 2024 financial statements, had been adjusted in the profit or loss for 2025, but has not yet been actually paid.

The employees' compensation for the year ended December 31, 2024 resolved by the Board of Directors amounted to $4,105. The difference of $1,348 between the amount resolved by the Board of Directors and the amount of $2,757 recognised in the 2023 financial statements, had been adjusted in the profit or loss for 2024.

Information on the Board of Directors' resolution regarding the employees' compensation and remuneration to directors can be obtained from the "Market Observation Post System" on the website of the Taiwan Stock Exchange.

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

(21) Non-operating income and expenses

A. Other income

	Year ended December 31
	2025	2024
Rental income	$36,729	$58,300
Dividend income	120,543	63,201
Others	36,153	85,479
Total	$193,425	$206,980

B. Other gains and losses

	Year ended December 31
	2025	2024
Gains on disposal of property, plant and equipment	$40,061	$6,691
Gains on disposal of investment	81,224	-
Impairment of property, plant and equipment	-	(226,263)
Impairment of goodwill	(35,298)	-
Foreign exchange (losses) gain, net	(75,465)	123,361
Gains on fair value adjustment of investment property	9,036	83,602
Gains on financial assets and liabilities at fair value through profit or loss	14,055	128,801
Other losses	(36,886)	(18,653)
Total	$(3,273)	$97,539

C. Finance costs

	Year ended December 31
	2025	2024
Interest expenses from bank borrowings	$459,811	$399,589
Interest expenses of convertible corporate bonds	-	279
Internet expenses on lease liabilities	3,572	6,148
Others	223	4
Less: capitalisation of qualifying assets	(134,784)	(114,428)
Total	$328,822	$291,592

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

(22) Income tax

A. The major components of income tax expense for the years ended December 31, 2025 and 2024 are as follows:

Income tax expenses recognised in profit or loss

	Year ended December 31
	2025	2024
Current income tax expense:
Current income tax charge	$106,373	$148,144
Tax on undistributed surplus earnings	11,234	13,631
Land Value Increment Tax	41,748	25,164
Prior year income tax (over) under estimation	(28,764)	(19,674)
Deferred tax expense:
Deferred tax expenses relating to origination and reversal of temporary differences	32,157	87,446
Total	$162,748	$254,711

Income tax recognised in other comprehensive income

	Year ended December 31
	2025	2024
Remeasurement of defined benefit obligations	$693	$(868)

B. Reconciliation between tax expenses and the product of accounting profit multiplied by applicable tax rates:

	Year ended December 31
	2025	2024
Accounting profit before tax from continuing operations	$429,559	$1,144,082
Income tax expenses at the statutory rate	192,406	425,028
Tax effect of revenues exempt and non-deductible expenses for tax purposes	(56,274)	(207,254)
Additional income tax under the Alternative Minimum Tax Act	-	30,021
Prior year income tax (over) under estimation	(28,764)	(19,674)
Tax on undistributed surplus earnings	11,234	13,631
Land Value Increment Tax	41,748	25,164
Others	2,398	(12,205)
Total	$162,748	$254,711

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

C. Amounts of deferred tax assets or liabilities as a result of temporary differences and tax losses are as follows:

	2025
	January 1	Recognised in profit or loss	Recognised in other comprehensive income	Acquisition of a subsidiary	December 31
Deferred tax assets
Unrealised provision for inventory obsolescence	$7,641	$(50)	$-	$1,042	$8,633
Accrued pension liabilities	30,578	(40)	(52)	-	30,486
Prepayments for land value increment tax	56,569	-	-	-	56,569
Operating loss carryforwards	15,302	4,722	-	-	20,024
Others	47,399	(11,009)	-	4,367	40,757
Total	$157,489	$(6,377)	$(52)	$5,409	$156,469
Deferred tax liabilities
Fair value adjustment of investment property	$(143,365)	$33,587	$-	$-	$(109,778)
Unrealised loss from sales	(11,108)	-	-	-	(11,108)
Reserve for land revaluation increment tax	(228,975)	-	-	-	(228,975)
Investment income accounted for using the equity method	(36,832)	(1,528)	-	1,528	(36,832)
Gain on disposal of plant	(75,372)	8,013	-	-	(67,359)
Others	(314)	(65,852)	-	-	(66,166)
Total	$(495,966)	$(25,780)	$-	$1,528	$(520,218)
	2024
---	---	---	---	---
	January 1	Recognised in profit or loss	Recognised in other comprehensive income	December 31
Deferred tax assets
Unrealised provision for inventory obsolescence	$28,859	$(21,218)	$-	$7,641
Accrued pension liabilities	30,954	(137)	(239)	30,578
Prepayments for land value increment tax	56,569	-	-	56,569
Operating loss carryforwards	28,155	(12,853)	-	15,302
Others	63,026	(15,627)	-	47,399
Total	$207,563	$(49,835)	$(239)	$157,489

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

	2024
	January 1	Recognised in profit or loss	Recognised in other comprehensive income	December 31
Deferred tax liabilities
Fair value adjustment of investment property	$(93,316)	$(50,049)	$-	$(143,365)
Unrealised loss from sales	(11,108)	-	-	(11,108)
Reserve for land revaluation increment tax	(228,975)	-	-	(228,975)
Investment income accounted for using the equity method	(36,832)	-	-	(36,832)
Gain on disposal of plant	(72,311)	(3,061)	-	(75,372)
Others	(15,184)	15,499	(629)	(314)
Total	$(457,726)	$(37,611)	$(629)	$(495,966)

D. Expiration dates of unused tax losses and amounts of unrecognised deferred tax assets for the Company's other domestic subsidiaries as of December 31, 2025 and 2024 are as follows:

(a) Domestic subsidiaries

December 31, 2025
Year incurred	Amount estimated/ filed/ assessed	Unused amount	Unrecognised deferred tax assets	Expiry year
2016-2025	Estimated/ filed/ assessed	$273,146	$187,141	2035
December 31, 2024
Year incurred	Amount estimated/ filed/ assessed	Unused amount	Unrecognised deferred tax assets	Expiry year
2016-2024	Estimated/ filed/ assessed	$235,369	$177,569	2034

(b) Foreign subsidiaries

December 31, 2025
Year incurred	Amount estimated/ filed/ assessed	Unused amount	Unrecognised deferred tax assets	Expiry year
2018-2021	Assessed	$231,550	$196,582	2026
December 31, 2024
Year incurred	Amount estimated/ filed/ assessed	Unused amount	Unrecognised deferred tax assets	Expiry year
2018-2021	Assessed	$230,722	$195,879	2026

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

E. The assessment of income tax returns

As of December 31, 2025, the assessment of the income tax returns of the Company is as follows:

The assessment of income tax returns

Achem Technology Corporation., Pantech Tape Co., Ltd., Yem Chio Construction Co., Ltd.,

Assessed and approved up to 2022

The Company, Yem Chio Distribution Co., Ltd., ACHEM Opto-Electronic Corporation., UINN HOTEL.Pantech Tape Co., Ltd. and King Sun New Tech Co., Ltd., Hong Yi Energy Co., Ltd., Hong How Technology Co., Ltd., Hong Er Technology Co., Ltd., Hong Wu Technology Co., Ltd., Hong Ba Technology Co., Ltd., Hong Ning International Co., Ltd., Hong Cheng Technology Co., Ltd., Hong Kai Technology Co., Ltd., Hong He Energy Co., Ltd. and Hong Chang Technology Co., Ltd., Victory Union IT Co., Ltd., Star Ray Co., Ltd., King Material Co., Ltd.

Assessed and approved up to 2023

The Company and its subsidiaries are located in the Cayman Islands, British Virgin Islands, the PRC, America, Vietnam, Malaysia and Samoa. Their tax authorities will not take the initiative to send a tax returns assessment to enterprises. When there are tax disputes, they issue a tax payment notice to enterprises and reserve the right to propose additional taxes.

(23) Earnings per share

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

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

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

	Year ended December 31
	2025	2024
Basic earnings per share
Profit attributable to ordinary equity holders of the Company (in thousand NT$)	$172,055	$816,889
Weighted average number of ordinary shares outstanding for basic earnings per share (in thousands)	658,514	642,135
Basic earnings per share (NT$)	$0.26	$1.27
	Year ended December 31
	2025	2024
Diluted earnings per share
Profit attributable to ordinary equity holders of the Company (in thousand NT$)	$172,055	$816,889
Weighted average number of ordinary shares outstanding for basic earnings per share (in thousands)	658,514	642,135
Effect of dilution:
Employees’ compensation - stock (in thousands)	128	379
Treasury stock transferred to employees (in thousands)	10,830	15,721
Weighted average number of ordinary shares outstanding after dilution (in thousands)	669,472	658,235
Diluted earnings per share (NT$)	$0.26	$1.24

There have been no other transactions involving ordinary shares or potential ordinary shares between the reporting date and the date that the financial statements were authorized for issue.

(24) Business combinations

In December 2023, the Company acquired a 27.5% shareholding of King Sun New Tech Co., Ltd. for a cash consideration of $72,105. Subsequently, on January 2, 2024, the Company acquired an additional 27.5% of voting shares in King Sun New Tech Co., Ltd. As a result, the cumulative shareholding exceeded 50%, making the investee company a subsidiary of our company from that date. The Company established in Taiwan, specializes in the construction of solar power plants and is not publicly listed. The reason for the Group’s acquisition of King Sun New Tech Co., Ltd. is to expand our renewable energy business in response to the Global trend and future direction towards renewable energy.

The Group has chosen to measure the non-controlling interest in King Sun New Tech Co., Ltd. at fair value.

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

The provisional amounts of King Sun New Tech Co., Ltd.'s identifiable assets and liabilities as of the acquisition date are as follows:

	Far value as of the acquisition date
Assets
Cash and cash equivalents	$168,442
Financial assets at fair value through profit or loss	869
Notes receivable and accounts receivable	78,316
Inventories	16,591
Prepayments	21,061
Property, plant and equipment	270,026
Right-of-use asset	18,681
Other assets	40,190
Assets subtotal	614,176
Liabilities
Short-term borrowings	72,949
Notes payable and accounts payable	32,503
Current contract liabilities	42,119
Long-term borrowings	307,564
Lease liabilities	18,602
Other liabilities	36,720
Liabilities subtotal	510,457
Identifiable net assets	$103,719

The amount of goodwill for King Sun New Tech Co., Ltd. is as follows:

Purchase consideration	$152,105
Add : Fair value of non-controlling interests	47,275
Less : Fair value of identifiable net assets	(103,719)
Goodwill	$95,661

Prior to the business combination, the Group held a 27.5% interest in King Sun New Tech Co., Ltd. The remeasurement of this interest at fair value resulted in a recognized gain of $3,844.

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

In July 2025, Yem Chio Distribution Co., Ltd. acquired 55.08% shareholding of Victory Union It Co., Ltd. and 55.06% of the voting shares of Star Ray Co., Ltd., and in August 2025, it acquired 55.02% shareholding of King Material Co., Ltd. As Yem Chio Distribution Co., Ltd.’s ownership in each entity exceeded 50%, Yem Chio Distribution Co., Ltd. obtained control over these companies and, accordingly, included them in the consolidated entities from the respective acquisition dates. The Group acquired Victory Union It Co., Ltd., Ray Co., Ltd. and King Material Co., Ltd. to expand its service capabilities in the adhesive materials and packaging applications sectors and to strengthen the breadth and depth of its market presence.

The Group has chosen to measure the non-controlling interest in Victory Union It Co., Ltd., Ray Co., Ltd. and King Material Co., Ltd. at fair value.

The provisional amounts of Victory Union It Co., Ltd.’s identifiable assets and liabilities as of the acquisition date are as follows:

	Provisional amounts as of the acquisition date
Assets
Cash and cash equivalents	$43,124
Notes receivable and accounts receivable	182,863
Inventories	77,095
Other current assets	13,437
Property, plant and equipment	15,140
Right-of-use asset	1,047
Other non-current assets	8,205
Assets subtotal	340,911
Liabilities
Short-term borrowings	89,546
Notes payable and accounts payable	56,992
Financial liabilities at fair value through profit or loss	1,785
Other current liabilities	44,060
Long-term borrowings	24,669
Other non-current liabilities	646
Liabilities subtotal	217,698
Identifiable net assets	$123,213
The amount of goodwill for Victory Union IT Co.,Ltd. is as follows:
Purchase consideration	$110,109
Less: Dividends treated as a return of capital	(6,165)
Add: Fair value of non-controlling interests	55,349
Less: Fair value of identifiable net assets	(123,213)
Goodwill	$36,080

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

The provisional amounts of Star Ray Co., Ltd.'s identifiable assets and liabilities as of the acquisition date are as follows:

	Provisional amounts as of the acquisition date
Assets
Cash and cash equivalents	$18,510
Notes receivable and accounts receivable	47,901
Inventories	9,375
Prepayments	201
Other current assets	300
Right-of-use asset	136
Other non-current assets	952
Assets subtotal	77,375
Liabilities
Notes payable and accounts payable	16,380
Other current liabilities	7,105
Long-term borrowings	12,709
Other non-current liabilities	879
Liabilities subtotal	37,073
Identifiable net assets	$40,302
The amount of goodwill for Star Ray Co., Ltd. is as follows:
Purchase consideration	$34,421
Less: Dividends treated as a return of capital	(1,704)
Add: Fair value of non-controlling interests	18,113
Less: Fair value of identifiable net assets	(40,302)
Goodwill	$10,528

The fair value of King Material Co., Ltd.'s identifiable assets and liabilities as of the acquisition date are as follows:

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

	Provisional amounts as of the acquisition date
Assets
Cash and cash equivalents	$10,579
Notes receivable and accounts receivable	23,901
Inventories	4,990
Other current assets	786
Property, plant and equipment	1,371
Right-of-use asset	106
Other non-current assets	993
Assets subtotal	42,726
Liabilities
Notes payable and accounts payable	4,697
Other current liabilities	1,668
Other non-current liabilities	4
Liabilities subtotal	6,369
Identifiable net assets	$36,357
The amount of goodwill for Star Ray Co., Ltd. is as follows:
Purchase consideration	$39,674
Add: Fair value of non-controlling interests	16,355
Less: Fair value of identifiable net assets	(36,357)
Goodwill	$19,672

The fair values of the assets and liabilities acquired by the Company mentioned above are provisional and subject to final valuation.

(25) Supplemental cash flow information

A. Cash payments for acquiring a subsidiary

	Year ended December 31
	2025	2024
The consideration for acquiring a subsidiary	$184,204	$152,105
Less: Cash and cash equivalents from acquiring a subsidiary	(72,213)	(168,442)
Cash payments to acquire the control (deducted acquiring cash)	$111,991	$(16,337)

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Related party transactions

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

(1) Names and relationship of related parties

Please refer to Note 4(3)B.

(2) Significant transactions with the related parties

A. Operating revenue

	Year ended December 31
	2025	2024
Sales of products:
Other related parties	$1,737	$1,797

Goods are sold based on the price lists in force and terms that are under mutual agreement.

B. Purchases

	Year ended December 31
	2025	2024
Purchases of goods:
Other related parties	$181	$245

The purchase terms and prices to related parties are based on mutual agreement.

C. Receivables from related parties

	December 31, 2025	December 31, 2024
Accounts receivable:
Other related parties	$177	$123

The receivables are unsecured in nature and bear no interest. There are no allowances for uncollectible accounts held against receivables from related parties.

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

D. Contract liabilities - Pre-sold house

	December 31, 2025	December 31, 2024
Contract liabilities - Pre-sold house:
Other related parties	$4,648	$4,648

On May 13, 2021, the Company's Board of Directors resolved to pre-sell the houses and parking space of the building project ‘THE ONE’ in Xinzhuang District of New Taipei City to Li, Qi-Zheng and Li, Shu-Wei. The total contract liabilities - pre-sold houses was $4,648, however, the transfer of ownership has not yet been completed.

E. Rental income

	Year ended December 31
	2025	2024
Associates	$-	$105

The Company leases parts of offices to associates. Rental contracts are made for periods of 3 years. Rents are paid at the beginning of every month.

F. Endorsements and guarantees provided to the Group by related parties

	December 31, 2025	December 31, 2024
Other related parties	$29,291,572	$26,848,735

(3) Key management personnel compensation

	Year ended December 31
	2025	2024
Short-term employee benefits	$28,128	$29,559
Post-employment benefits	684	761
Total	$28,812	$30,320

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

8. Pledged assets

The following table lists assets of the Group pledged as collateral:

Pledged assets	Carrying amount		Purpose
	December 31, 2025	December 31, 2024
Financial assets at fair value through other comprehensive income	$1,183,552	$1,036,776	Long-term borrowings, short-term borrowings
Financial assets at amortised cost - current	415,246	1,394,610	Borrowings, purchase and performance guarantee for construction
Financial assets at amortised cost - non-current - demand deposits	16,223	10,799	Long-term borrowings, corporate bond guarantee and consideration trust for inventory purchases and sales, etc.
Financial assets at amortised cost - non-current - time deposits	11,803	11,768	Leasehold land guarantees, performance guarantee for construction and guarantee for corporate bonds
Accounts receivable	135,634	126,817	Long-term borrowings, short-term borrowings
Inventories	14,670,181	12,703,054	Long-term borrowings, short-term borrowings
Property, plant and equipment	6,763,656	6,942,511	Long-term borrowings, short-term borrowings
Investment property	1,753,053	1,718,609	Long-term borrowings, short-term borrowings
Other non-current assets - guarantee deposits paid	54,449	41,409	Performance guarantee
Total	$25,003,797	$23,986,353

9. Significant contingencies and unrecognised contractual commitments

Except for those mentioned in Notes 6(14), the Group’s significant commitments are as follows:

(1) As of December 31, 2025 and 2024, the unused letters of credit amounted to $81,480 and $214,874 for the purchase of goods and machinery as collateral, respectively.

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

(2) Capital expenditures contracted for at the balance sheet date but not yet incurred are as follows:

	December 31, 2025	December 31, 2024
Property, plant and equipment	$275,749	$234,576
Consigned to construction companies to construct buildings	984,512	1,135,551
Total	$1,260,261	$1,370,127

Losses due to major disasters

None.

Significant subsequent events

None.

Others

(1) Categories of financial instruments

Financial assets

	December 31, 2025	December 31, 2024
Financial assets at fair value through profit or loss
Financial assets mandatorily measured at fair value through profit or loss	$208,417	$546,305
Financial assets at fair value through other comprehensive income	2,766,844	1,541,749
Financial assets at amortised cost
Cash and cash equivalents	2,829,813	2,360,882
Financial assets at amortised cost	443,272	1,417,177
Notes receivable	370,456	371,053
Accounts receivable (including related parties)	2,498,889	2,196,257
Other receivables	172,841	120,327
Guarantee deposits paid	54,449	41,409
Subtotal	6,369,720	6,507,105
Total	$9,344,981	$8,595,159

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Financial liabilities

	December 31, 2025	December 31, 2024
Financial liabilities at amortised cost
Short-term borrowings	$5,575,373	$6,055,610
Short-term notes and bills payable	400,000	50,000
Notes payable	242,525	236,167
Accounts payable	752,334	759,961
Other payables (including related parties)	857,742	723,310
Long-term borrowings (within 1 year or 1 operating cycle)	14,079,362	12,202,310
Lease liabilities (within 1 year)	103,627	135,659
Guarantee deposits received	15,900	16,183
Total	$22,026,863	$20,179,200

(2) Financial risk management objectives and policies

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

Risk management is carried out by a central treasury department (Group treasury) under policies approved by the Board of Directors. Group treasury identifies, evaluates and hedges financial risks in close co-operation with the Group’s operating units. The Board provides written principles for overall risk management, as well as written policies covering specific areas and matters, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.

(3) Market risk

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

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

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Foreign currency risk

The Group operates internationally and is exposed to exchange rate risk arising from the transactions of the Company and its subsidiaries used in various functional currency, primarily with respect to the USD and RMB. Exchange rate risk arises from future commercial transactions and recognised assets and liabilities.

Management has set up a policy to require group companies to manage their foreign exchange risk against their functional currency. The companies are required to hedge their entire foreign exchange risk exposure with the Group treasury.

The Group has certain investments in foreign operations, whose net assets are exposed to foreign currency translation risk.

The foreign currency sensitivity analysis of the possible change in foreign exchange rates on the Group's profit is performed on significant monetary items denominated in foreign currencies as at the end of the reporting period. The Group's foreign currency risk is mainly related to the volatility in the exchange rates for USD and RMB. The information of the sensitivity analysis is as follows:

A. When NTD strengthens/weakens against USD by 5%, the profit for the years ended December 31, 2025 and 2024 is decreased/increased by $73,222 and $79,666, respectively.
B. When USD strengthens/weakens against RMB dollar by 5%, the profit for the years ended December 31, 2025 and 2024 is increased/decreased by $38,571 and $20,702, respectively.

Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group's exposure to the risk of changes in market interest rates relates primarily to the Group's long-term borrowings. During 2025 and 2024, the Group's borrowings at variable rate were mainly denominated in NTD, USD and RMB.

The Group's borrowings are measured at amortised cost. The borrowings are periodically contractually repriced and to that extent are also exposed to the risk of future changes in market interest rates.

The interest rate sensitivity analysis is performed on items exposed to interest rate risk as at the end of the reporting period, including investments and borrowings with variable interest rates and interest rate swaps. At the reporting date, a change of 5% of interest rate in a reporting period could cause the profit for the years ended December 31, 2025 and 2024 to decrease/increase by $21,352 and $16,062, respectively.

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Equity price risk

The Group’s equity securities, which are exposed to price risk, are the held financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income. To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Group.

The Group’s investments in equity securities comprise shares and open-end funds issued by the domestic companies. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased by 5% with all other variables held constant, post-tax profit for the years ended December 31, 2025 and 2024 would have increased/decreased by $10,421 and $8,232, respectively, as a result of gains/losses on equity securities classified as at fair value through profit or loss. Other components of equity would have increased/decreased by $105,938 and $74,160, respectively, as a result of other comprehensive income classified as equity investment at fair value through other comprehensive income.

(4) Credit risk management

Credit risk is the risk that a counterparty will not meet its obligations under a contract, leading to a financial loss. The Group is exposed to credit risk from operating activities (primarily for notes receivable and accounts receivable) and financing activities (primarily for various financial instrument).

The Group manages their credit risk taking into consideration the entire group’s concern. For banks and financial institutions, only banks and financial institutions with optimal credit ratings are accepted. According to the Group’s credit policy, each local entity in the Group is responsible for managing and analysing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors.

According to the internal management policy of the Group, that is, the default occurs when the contract payments are past due over 240 days.

The Group adopts the following assumption under IFRS 9 to assess whether there has been a significant increase in credit risk on that instrument since initial recognition:

If the contract payments were past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

The Group applies the simplified approach using the provision matrix to estimate expected credit loss to assess the Group’s accounts receivable.

The following indicators are used to determine whether the credit impairment of debt instruments has occurred:

A. It becomes probable that the issuer will enter bankruptcy or other financial reorganization due to their financial difficulties;
B. The disappearance of an active market for that financial asset because of financial difficulties;
C. Default or delinquency in interest or principal repayments;
D. Adverse changes in national or regional economic conditions that are expected to cause a default.

The Group wrote-off the financial assets, which cannot be reasonably expected to be recovered, after initiating recourse procedures. However, the Group will continue executing the recourse procedures to secure their rights.

The Group applied historical and timely information to assess the default possibility. The simplified approach using the provision matrix provides matrix to estimate loss allowance of accounts receivable and the movements in loss allowance for notes and accounts receivable please refer to Note 6(19).

(5) Liquidity risk management

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

The table below analyses the Group’s non-derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for non-derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

December 31, 2025

	Less than 1 year	Over 1 year	Total
Non-derivative financial liabilities
Short-term borrowings	$5,610,792	$-	$5,610,792
Short-term notes and bills payable	400,000	-	400,000
Notes payable	242,525	-	242,525
Accounts payable	752,334	-	752,334
Other payables (including related parties)	857,742	-	857,742
Long-term borrowings
(including current portion)	317,292	15,153,060	15,470,352
Lease liabilities (including current portion)	27,044	90,492	117,536
Total	$8,207,729	$15,243,552	$23,451,281

December 31, 2024

	Less than 1 year	Over 1 year	Total
Non-derivative financial liabilities
Short-term borrowings	$6,100,938	$-	$6,100,938
Short-term notes and bills payable	50,000	-	50,000
Notes payable	236,167	-	236,167
Accounts payable	759,961	-	759,961
Other payables (including related parties)	723,310	-	723,310
Long-term borrowings
(including current portion)	436,514	12,747,754	13,184,268
Lease liabilities (including current portion)	43,118	109,107	152,225
Total	$8,350,008	$12,856,861	$21,206,869

As of December 31, 2025 and 2024 the Group all held no derivative financial liabilities.

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

(6) Reconciliation of liabilities arising from financing activities

	Short-term borrowings	long-term borrowings (including current portion)	Short-term notes and bills payable	Bonds payable (including current portion)	Lease liabilities	Liabilities from financing activities-gross
2025.1.1	$6,055,610	$12,202,310	$50,000	$-	$135,659	$18,443,579
Cash flows	(574,435)	1,821,935	350,000	-	(44,492)	1,553,008
Non-cash changes (Note)	-	-	-	-	11,981	11,981
Exchange differences	94,198	55,117	-	-	479	149,794
2025.12.31	$5,575,373	$14,079,362	$400,000	$-	$103,627	$20,158,362
	Short-term borrowings	long-term borrowings (including current portion)	Short-term notes and bills payable	Bonds payable (including current portion)	Lease liabilities	Liabilities from financing activities-gross
2024.1.1	$5,721,162	$8,819,395	$400,000	$161,502	$153,677	$15,255,736
Cash flows	246,812	3,069,659	(350,000)	(405)	(46,382)	2,919,684
Non-cash changes (Note)	72,949	313,383	-	(161,097)	25,558	250,793
Exchange differences	14,687	(127)	-	-	2,806	17,366
2024.12.31	$6,055,610	$12,202,310	$50,000	$-	$135,659	$18,443,579

Note: Including amortization of convertible bonds, conversion of convertible bonds into equity, acquiring assets by leasing and financial costs of lease liabilities, etc.

(7) Fair value information

A. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, based on the lowest level input that is significant to the fair value measurement as a whole. Level 1, 2 and 3 inputs are described as follows:

Level 1: Quoted (unadjusted) market prices in active markets for identical assets or liabilities that the entity can access at the measurement date. The fair value of the Group's investment in listed stocks is included in Level 1.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either directly or indirectly.

Level 3: Unobservable inputs for the assets or liabilities. The fair value of redemption rights of convertible corporate bonds issued by the Group and wealth management products are included in Level 3.

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

B. Financial instruments not measured at fair value

Except for bonds payable, the carrying amounts of cash and cash equivalents, financial assets at amortised cost, notes receivable, accounts receivable (including related parties), other receivables (including related parties), short-term borrowings, short-term notes and bills payable, notes payable, accounts payable (including related parties) and other payables (including related parties) are approximate to their fair values. Interest rates of long-term borrowings (including maturity within 1 year or 1 operating cycle) are approximately the same as market interest rates, thus, the carrying amount should be a reasonable basis for fair value estimation.

The bonds payable are convertible corporate bonds issued by the Company, with a coupon rate approximately equivalent to the current market rate. Therefore, the fair value is estimated using the present value of the expected cash flows approximate to the carrying amount.

The financial instruments not measured at fair value were both $0 as of December 31, 2025 and 2024.

C. The related information on financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets are as follows:

(a) The related information on the nature of the assets and liabilities is as follows:

December 31, 2025	Level 1	Level 2	Level 3	Total
Recurring fair value measurements for assets:
Financial assets at fair value through profit or loss
Equity securities	$208,417	$-	$-	$208,417
Financial assets at fair value through other comprehensive income
Equity securities	1,700,326	-	5,597	1,705,923
Bank debentures	-	1,060,921	-	1,060,921
Investment property	-	-	2,411,173	2,411,173
Total	$1,908,743	$1,060,921	$2,416,770	$5,386,434
December 31, 2024	Level 1	Level 2	Level 3	Total
Recurring fair value measurements for assets:
Financial assets at fair value through profit or loss
Equity securities	$164,643	$-	$-	$164,643
Wealth management product	-	-	380,662	380,662
Fund	-	1,000	-	1,000
Financial assets at fair value through other comprehensive income
Equity securities	1,477,595	-	5,597	1,483,192
Bank debentures	-	58,557	-	58,557
Investment property	-	-	2,399,775	2,399,775
Total	$1,642,238	$59,557	$2,786,034	$4,487,829

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

(b) The methods and assumptions the Group measure the fair value are as follows:

i. The instruments the Group used market quoted prices as their fair values (that is, Level 1) are listed below by characteristics:

Market quoted price	Listed shares
	Closing price

ii. Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques. The fair value of financial instruments measured by using valuation techniques can be referred to valuation methods.

iii. Under the "Regulations Governing the Preparation of Financial Reports by Securities Issuers", the Group makes self-assessment using the income approach to calculate the fair value of investment property. Related assumptions and information on inputs are as follows:

(i) Cash flow: Cash flow shall be evaluated on the basis of existing lease contracts, rent at local market rates, or current market rents for similar comparable properties in the same location and condition, and overvalued and undervalued comparable properties shall be excluded. If there is a period-end value, the discounted present period-end value may be added.

(ii) Analysis period: When there is no specified period for the income, the analysis period in principle shall not be longer than 10 years; when there is a specified period for the income, the income shall be estimated for the remainder of the specified period.

(iii) Discount rate: The discount rate shall be determined using the risk premium approach only, with the calculation based on a certain interest rate, plus the estimate for the individual characteristics of the investment property. The phrase "based on a certain interest rate" means the interest rate may not be lower than the floating interest rate on a 2-year time deposit of a small amount, as posted by the Chunghwa Post Co. Ltd., plus 0.75 percentage points; while the discount rates used by the Group's China subsidiaries are based on the rate of 10 years national debt issued by the Bank of China.

D. For the years ended December 31, 2025 and 2024, there was no transfer between Level 1 and Level 2.

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

E. The following chart is the movement of Level 3 for the years ended December 31, 2025 and 2024:

	Wealth management
	product		Capital guarantee products
	2025	2024	2025	2024
At January 1	$380,662	$51,924	$-	$475,897
Gains/(losses) recognised in profit or loss (recorded as non-operating income and expenses)	5,099	3,940	-	-
Acquisition	1,261,326	1,607,463	-	(489,788)
Disposal	(1,634,870)	(1,286,365)	-	-
Exchange differences	(12,217)	3,700	-	13,891
At December 31	$-	$380,662	$-	$-

F. For the years ended December 31, 2025 and 2024, there was no transfer into or out from Level 3.

G. The information on change in fair value of investment property for the years ended December 31, 2025 and 2024 is provided in Note 6(10).

H. Treasury segment is in charge of valuation procedures for fair value measurements being categorized within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions, confirming the resource of information is independent, reliable and in line with other resources and represented as the exercisable price, and making any other necessary adjustments to the fair value. Investment property and call options and put options of convertible corporate bonds are evaluated through outsourced appraisal performed by the external valuer.

I. The following is the qualitative information of significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement:

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Item	Fair value at December 31, 2025	Valuation technique	Significant observable input	Range	Relationship of inputs to fair value
Financial assets at fair value through profit or loss:
Wealth management product	$-	Discounted cash flow	Discounted rate	Not applicable	The higher the discount rate, the lower the fair value.
Capital guarantee products		Discounted cash flow	Discounted rate	Not applicable	The higher the discount rate, the lower the fair value.
Financial assets at fair value through other comprehensive income:
Equity securities	5,597	Market comparable companies	Industrial average price to book ratio	Not applicable	The higher the book value per share, the higher the fair value.
Investment property	2,411,173	Income approach	Discounted rate	(Note)	The higher the discount rate, the lower the fair value.
	Fair value at December 31, 2024	Valuation technique	Significant observable input	Range	Relationship of inputs to fair value
Financial assets at fair value through profit or loss:
Wealth management product	$380,662	Discounted cash flow	Discounted rate	Not applicable	The higher the discount rate, the lower the fair value.
Financial assets at fair value through other comprehensive income:
Equity securities	5,597	Market comparable companies	Industrial average price to book ratio	Not applicable	The higher the book value per share, the higher the fair value.
Investment property	2,399,775	Income approach	Discounted rate	(Note)	The higher the discount rate, the lower the fair value.

Note: Information on discount rate and income capitalisation rate is provided in Note 6(10).

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

(8) Significant assets and liabilities denominated in foreign currencies

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

	December 31, 2025
	Foreign currencies (in thousand)	Foreign exchange rate	NTD (in thousand)
Financial assets
Monetary items:
USD:NTD	$48,107	31.43	$1,512,003
USD:RMB	24,926	6.99	783,424
Financial liabilities
Monetary items:
USD:NTD	$1,513	31.43	$47,554
USD:RMB	382	6.99	12,006
	December 31, 2024
	Foreign currencies (in thousand)	Foreign exchange rate	NTD (in thousand)
Financial assets
Monetary items:
USD:NTD	$50,509	32.79	$1,655,938
USD:RMB	13,025	7.32	427,025
Financial liabilities
Monetary items:
USD:NTD	$1,910	32.79	$62,619
USD:RMB	396	7.32	12,983

The total exchange (losses) gains, including realised and unrealised arising from significant foreign exchange variation on the monetary items held by the Group for the years ended December 31, 2025 and 2024, amounted to $(75,465) and $123,361, respectively.

(9) Capital management

The primary objective of the Group's capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximize shareholder value. Refer to the balance sheet of each period for related liabilities and capital ratio.

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Supplementary disclosures

(1) Significant transactions information

A. Financing provided to others: Please refer to table 1.
B. Endorsement/Guarantee provided to others: Please refer to table 2.
C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to table 3.
D. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 4.
E. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 5.
F. Significant inter-company transactions during the reporting periods: Please refer to table 6.

(2) Information on investees

Names, locations and other information of investee companies (not including investees in China): Please refer to table 7.

(3) Information on investments in China

A. Basic information: Please refer to table 8.
B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: Please refer to items (1) A, B, D, E and F above.

Segment information

Management has determined the reportable operating segments based on the reports reviewed by the Board of Directors that are used to make strategic decisions. Reportable operating segments classified by products and business structure mainly contain tape manufacturing segment, package material business segment, real estate business segment, specialty chemical segment and Renewable energy business segment.

The segment information provided to the Chief Operating Decision-Maker for the reportable segments is as follows:

	Year ended December 31, 2025
	Tape manufacturing segment	Packaging material business segment	Real estate business segment	Specialty chemical segment	Renewable energy business segment	Adjustments and eliminations	Consolidated
Revenue
Revenue from external customers	$9,361,066	$1,911,283	$1,041,968	$558,626	$403,132	$-	$13,276,075
Inter-segment revenue	2,140,411	-	-	4,027	233	(2,144,671)	-
Total revenue	$11,501,477	$1,911,283	$1,041,968	$562,653	$403,365	$(2,144,671)	$13,276,075
Segment profit	$173,202	$175,257	$7,840	$(4,283)	$80,617	$80,514	$513,147

Yem Chio Co., Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements (Continued)

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

	Year ended December 31, 2024
	Tape manufacturing segment	Packaging material business segment	Real estate business segment	Specialty chemical segment	Renewable energy business segment	Adjustments and eliminations	Consolidated
Revenue
Revenue from external customers	$10,610,128	$1,436,198	$2,961,595	$465,066	$418,095	$-	$15,891,082
Inter-segment revenue	2,558,365	-	163	6,942	28	(2,565,498)	-
Total revenue	$13,168,493	$1,436,198	$2,961,758	$472,008	$418,123	$(2,565,498)	$15,891,082
Segment profit	$409,836	$121,469	$303,214	$48,424	$74,851	$70,504	$1,028,298

Note: Including losses from discontinued operations.

Information on segment assets and liabilities was not disclosed because the Group did not provide the information to the Chief Operating Decision-Maker.

The revenue from external customers reported to the Chief Operating Decision-Maker is measured in a manner consistent with that in the statement of comprehensive income.

A reconciliation of reportable segment income or loss to the income/(loss) before tax from continuing operations for the years ended December 31, 2025 and 2024 is provided as follows:

	Year ended December 31
	2025	2024
Reportable segments income	$513,147	$1,028,298
Non-operating income and expenses	(83,588)	115,784
Profit before tax from continuing operations	$429,559	$1,144,082

Information on products and services

Revenue from external customers is primarily derived from the trading business of all kinds of tape, adhesives and real estate business. Details of sales revenue are as follows:

	Year ended December 31
	2025	2024
Tape	$8,452,582	$9,393,095
BOPP Film	908,484	1,217,033
Packaging materials	1,911,283	1,436,198
Real estate business	1,041,968	2,961,595
Renewable energy business	403,132	418,095
Specialty chemical	558,626	465,066
Total	$13,276,075	$15,891,082

Yem Chio Co., Ltd. and Subsidiaries
Notes to the Consolidated Financial Statements (Continued)
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Geographical information

The Group's operations are located in Taiwan, China, the United States and other countries. Information on the Group's revenue from external customers and non-current assets classified based on the location of assets is as follows:

	Year ended December 31
	2025		2024
	Revenue	Non-current assets	Revenue	Non-current assets
Taiwan	$7,947,492	$7,410,564	$10,508,325	$8,208,002
China	4,107,953	1,340,196	4,068,924	1,297,448
USA	989,411	824,917	1,042,268	925,864
Others	231,219	961,033	271,565	1,038,537
Total	$13,276,075	$10,536,710	$15,891,082	$11,469,851

Note: Revenue is classified based on the location of sales departments.

Major customer information

There was no sale to a single customer constituting more than 10% of the Group's consolidated net sales in 2025 and 2024.

Yem Chio-Co., Ltd. and Subsidiaries

Financing provided to others

For the year ended December 31, 2025

(Expressed in thousands of New Taiwan Dollars unless otherwise specified)

Table 1

No. (Note 1)	Creditor	Borrower	General ledger account (Note 2)	b. a related party	Maximum outstanding balance during the year ended December 31, 2025 (Note 3)	Balance at December 31, 2025 (Note 8)	Actual amount due to down	Interest rate	Nature of loan (Note 4)	Amount of transactions with the borrower (Note 5)	Reason for short-term financing (Note 6)	Allowance for doubtful accounts	Collateral		Limit on loans granted to a single party (Note 7)	Ceiling on total loans granted (Note 7)	Prohibit
													Bans	Value
0	The Company	YEM CHIO Construction Co., Ltd.	Other receivables	Yes	$400,000	$400,000	$370,000	2.00%	2	$-	Working capital	$-	None	$-	$2,564,947	$5,129,894	-
0	The Company	YEM CHIO travel Co., Ltd.	Other receivables	Yes	100,000	100,000	96,000	2.00%	2	-	Working capital	-	None	-	2,564,947	5,129,894	-
0	The Company	Achem Opto-Electronic Co., Ltd.	Other receivables	Yes	20,000	20,000	17,000	2.00%	2	-	Working capital	-	None	-	2,564,947	5,129,894	-
1	YEM CHIO	Achem Technology Holdings Co., Ltd.	Other receivables	Yes	188,580	188,580	188,580	5.00%	2	-	Working capital	-	None	-	1,551,008	1,551,008	-
2	Achem Technology Co., Ltd.	YEM CHIO Construction Co., Ltd.	Other receivables	Yes	400,000	400,000	-	2.00%	2	-	Working capital	-	None	-	1,145,763	2,005,085	-
2	Achem Technology Co., Ltd.	YEM CHIO travel Co., Ltd.	Other receivables	Yes	100,000	100,000	-	2.00%	2	-	Working capital	-	None	-	1,145,763	2,005,085	-
2	Achem Technology Co., Ltd.	The Company	Other receivables	Yes	400,000	200,000	-	2.00%	2	-	Working capital	-	None	-	1,145,763	2,005,085	-
2	Achem Technology Co., Ltd.	Achem Opto-Electronic Co., Ltd.	Other receivables	Yes	20,000	20,000	-	2.00%	2	-	Working capital	-	None	-	1,145,763	2,005,085	-
2	Achem Technology Co., Ltd.	Achem Technology Holdings Co., Ltd.	Other receivables	Yes	166,025	-	-	2.00%	2	-	Working capital	-	None	-	1,145,763	2,005,085	-
2	Achem Technology Co., Ltd.	Partech Tape Co., Ltd.	Other receivables	Yes	55,000	-	-	2.00%	2	-	Working capital	-	None	-	1,145,763	2,005,085	-
3	Achem Technology Holdings Co., Ltd.	ASIA PLASTICS	Other receivables	Yes	33,205	31,430	27,030	2.00%	2	-	Working capital	-	None	-	4,405,952	4,405,952	-
3	Achem Technology Holdings Co., Ltd.	ACHEM Technology (Vietnam) Ltd.	Other receivables	Yes	137,137	129,806	129,806	2.5% - 5%	2	-	Working capital	-	None	-	4,405,952	4,405,952	-
3	Achem Technology Holdings Co., Ltd.	WAV CHIO	Other receivables	Yes	164,365	155,579	155,579	2.00%	2	-	Working capital	-	None	-	4,405,952	4,405,952	-
3	Achem Technology Holdings Co., Ltd.	The Company	Other receivables	Yes	157,150	157,150	94,290	5.00%	2	-	Working capital	-	None	-	1,762,381	1,762,381	-
3	Achem Technology Holdings Co., Ltd.	Wanchin Adhesive Product (Jiangsu) Co., Ltd.	Other receivables	Yes	4,496	4,496	4,496	2.50%	2	-	Working capital	-	None	-	4,405,952	4,405,952	-
4	ACHEM Technology (Dongguan) Adhesive Products Co., Ltd.	Wanchin Adhesive Product (Jiangsu) Co., Ltd.	Other receivables	Yes	209,672	206,142	206,142	2.00%	2	-	Working capital	-	None	-	991,302	991,302	-
4	ACHEM Technology (Dongguan) Adhesive Products Co., Ltd.	Ningbo Yens Chio Co., Ltd.	Other receivables	Yes	139,376	139,376	139,376	2.00%	2	-	Working capital	-	None	-	991,302	991,302	-
5	ASIACHEM International Corporation	Achem Technology Holdings Co., Ltd.	Other receivables	Yes	506,376	497,223	497,223	2% - 5%	2	-	Working capital	-	None	-	1,489,468	1,489,468	-
5	ASIACHEM International Corporation	Wanchin Adhesive Product (Jiangsu) Co., Ltd.	Other receivables	Yes	157,220	154,572	154,572	2.00%	2	-	Working capital	-	None	-	1,489,468	1,489,468	-
5	ASIACHEM International Corporation	The Company	Other receivables	Yes	358,614	339,444	336,301	2.00%	2	-	Working capital	-	None	-	595,787	595,787	-
6	Valarilon Investment Corporation	ACHEM Technology Corporation	Other receivables	Yes	27,000	-	-	2.00%	2	-	Working capital	-	None	-	32,415	32,415	-
7	ACHEM Technology China	The Company	Other receivables	Yes	327,069	314,300	314,300	2% - 5%	2	-	Working capital	-	None	-	1,594,436	1,594,436	-
8	Wanchin Adhesive Product (Jiangsu) Co., Ltd.	Ningbo Yens Chio Co., Ltd.	Other receivables	Yes	36,584	35,968	35,968	2.90%	2	-	Working capital	-	None	-	66,139,356	66,139,356	-
9	AOE Holding Limited	Achem Technology Holdings Co., Ltd.	Other receivables	Yes	40,859	40,859	31,430	2% - 5%	2	-	Working capital	-	None	-	531,263	531,263	-
10	Yens Chio Distribution Co., Ltd.	The Company	Other receivables	Yes	260,000	160,000	-	2.00% - 2.20%	2	-	Working capital	-	None	-	308,272	308,272	-
11	Yens Chio Distribution Co., Ltd.	Victory Union II Co., Ltd.	Other receivables	Yes	100,000	100,000	67,000	2.20%	2	-	Working capital	-	None	-	308,272	308,272	-
12	Master Package (Shanghai) Material Technology Co., Ltd.	Ningbo Yens Chio Co., Ltd.	Other receivables	Yes	44,815	-	-	4.00%	2	-	Working capital	-	None	-	47,888	47,888	-
13	Master Package (Shanghai) Material Technology Co., Ltd.	Dongguan Mingying new material Co., Ltd.	Other receivables	Yes	44,960	44,960	22,480	3.00%	2	-	Working capital	-	None	-	47,888	47,888	-

Note 1: The numbers filled in for the loans provided by the Company or subsidiaries are as follows:

(1) The Company is '0'.

(2) The subsidiaries are numbered in order starting from '1'.

Note 2: Fill in the name of account in which the loans are recognized, such as receivables-related parties, current account with stockholders, prepayments, temporary payments, etc.

Note 3: Fill in the maximum outstanding balance of loans to others for the year ended December 31, 2025.

Note 4: Nature of loan belong to business relationship or short-term financing shall fill in '1' and '2', respectively.

Note 5: Fill in the amount of business transactions when nature of the loan is related to business transactions, which is the amount of business transactions occurred between the creditor and borrower in the current year.

Note 6: Fill in purpose of loan when nature of loan is for short-term financing, for example, repayment of loan, acquisition of equipment, working capital, etc.

Note 7: Fill in limit on loans granted to a single party and ceiling on total loans granted as prescribed in the creditor company's "Procedures for Provision of Loans", and state each individual party to which the loans have been provided and

(1) In accordance with the financing policy of the Company, the ceiling for total financing amount shall not exceed 40% of stockholders' equity, and separate financing amount shall not exceed 20% of stockholders' equity.

(2) The aggregate amount of YEM CHB's loans to others and the loan amount to any single counterparty shall each be capped at 40% of net worth.

Provided that final handling among offshore companies that are directly and indirectly 100% owned, in terms of voting rights, by the ultimate parent company shall be subject to a limit of 400% of the company's net worth.

(3) Limit on loans granted by ACHEM Technology Holdings Limited to others and to a single party shall not exceed 40% of the stockholders' equity. But for foreign companies whose voting rights are directly and indirectly wholly-owned by the ultimate parent company, the limit on loans is 100% of the stockholders' equity.

(4) Limit on loans granted by ASIACHEM International Corporation to others and to a single party shall not exceed 40% of the stockholders' equity. But for foreign companies whose voting rights are directly and indirectly wholly-owned by the parent company of ASIACHEM International Corporation, the limit on loans is 100% of the stockholders' equity of ASIACHEM International Corporation.

(5) In accordance with the financing policy of Valueline Investment Corporation, the ceiling for total and separate financing amount shall not exceed 40% of the stockholders' equity of the subsidiaries.

(6) Limit on loans granted by ACHEM Technology (Dongguan) Adhesive Products Co., Ltd. to others and to a single party shall not exceed 40% of the stockholders' equity of ACHEM Technology (Dongguan) Adhesive Products Co., Ltd.

If borrowers are foreign companies whose voting rights are directly and indirectly wholly-owned by the ultimate parent company of ACHEM Technology (Dongguan) Adhesive Products Co., Ltd., the limit on loans is 100% of the stockholders' equity of ACHEM Technology (Dongguan) Adhesive Products Co., Ltd.

(7) Limit on loans granted by ACHEM Technology China to others and to a single party shall not exceed 40% of the stockholders' equity of ACHEM Technology China. If borrowers are foreign companies whose voting rights are directly and indirectly wholly-owned by the ultimate parent company of ACHEM Technology China, the limit on loans is 100% of the stockholders' equity of ACHEM Technology China.

(8) For the short-term financing from ACHEM Technology Corporation, the total and individual lending amount shall not exceed 35% and 20% of its nets assets, respectively.

(9) The total and individual lending amount of Wanchin Adhesive Product (Jiangsu) Co., Ltd. shall not exceed 40% of its net assets.

However, the loans among foreign entities to which the ultimate parent company of Wanchin Adhesive Product (Jiangsu) Co., Ltd. directly or indirectly has 100% voting rights, the total and individual lending amount shall not exceed 3000% of net assets of the lender company.

(10) Limit on loans granted by AOE Holding Limited to others and to a single party shall not exceed 40% of the stockholders' equity. But for foreign companies whose voting rights are directly and indirectly wholly-owned by the parent company of AOE Holding Limited, the limit on loans is 100% of the stockholders' equity of AOE Holding Limited.

(11) Ceiling on total loans to others and limit on loans to a single party granted by Master Package (Shanghai) shall not exceed 40% of the stockholders' equity.

If the borrowers are foreign companies whose voting rights are directly and indirectly wholly-owned by the ultimate parent company, the ceiling for total financing amount granted by Master Package (Shanghai) shall not exceed 100% of stockholders' equity.

(12) Limit on Yee Chie Distribution Co., Ltd.'s total loans to others is 40% of the Company's net assets.

Limit on loans to a single party with short-term financing is 40% of the Company's net assets.

Note 8: The amounts of funds to be loaned to others which have been approved by the board of directors of a public company in accordance with Article 14, Item 1 of the "Regulations Governing Leaning of Funds and Making of Endorsements/Guarantees by Public Companies" should be included in its published balance of loans to others at the end of the reporting period to reveal the risk of loaning the public company loans, even though they have not yet been appropriated. However, this balance should exclude the loans repaid when repayments are done subsequently to reflect the risk adjustment. In addition, if the board of directors of a public company has authorized the chairman to loan funds in installments or in revolving within certain lines and within one year in accordance with Article 14, Item 2 of the "Regulations Governing Leaning of Funds and Making of Endorsements/Guarantees by Public Companies", the published balance of loans to others at the end of the reporting period should also include these lines of loaning approved by the board of directors, and these lines of loaning should not be excluded from this balance even though the loans are repaid subsequently, for taking into consideration they could be loaned again thereafter.

Yinn Chiu Co., Ltd. and Subsidiaries

Endorsement/Guarantees provided to others

For the year ended December 31, 2023

(Expressed in thousands of New Taiwan Dollars unless otherwise specified)

Table 2

No. (Note 1)	Endorser/Guarantee	Endorser/Guarantee		Limit on endorsement/guarantee Given on behalf of each party (Note 2)	Maximum balance for the period (Note 4)	Ending balance (Note 5)	Actual Borrowing Amount (Note 6)	Amount of endorsements/guarantees (diminished by properties)	Percentage of accumulated guarantee amount to net assets value from the latest financial statement	Limit of total guarantee/endorsement amount (Note 3)	Provision of endorsements/guarantees by parent company to subsidiary (Note7)	Provision of endorsements/guarantees to subsidiary to parent company (Note 7)	Provision of endorsements/guarantees to the party in Mainland China (Note 7)	Footnote
		Company name	Relationship (Note 2)
0	The Company	ACHRM Technology (Vietnam) Ltd.	2	812,824,734	894,290	894,290	862,804	b	1%	819,237,101	Y	N	N	-
0	The Company	Wanzhiu Adhesive Product (Jiangsu) Co., Ltd.	2	12,824,734	164,628	125,888	-	-	1%	19,237,101	Y	N	Y	-
0	The Company	Achien Technology Holdings Co., Ltd.	2	12,824,734	565,740	565,740	-	-	5%	19,237,101	Y	N	N	-
0	The Company	Ningbo Yum Chie Co., Ltd.	2	12,824,734	202,320	202,320	-	-	2%	19,237,101	Y	N	Y	-
0	The Company	Yizhou (Dongguan) adhesive Product Co., Ltd.	2	12,824,734	30,000	30,000	-	-	0%	19,237,101	Y	N	Y	-
1	King Sun New Tech Co., Ltd.	Hong How Technology Co., Ltd.	2	235,297	52,928	52,928	41,720	-	28%	705,891	N	N	N	-
1	King Sun New Tech Co., Ltd.	Hong Ning International Co., Ltd.	2	235,297	39,679	39,679	36,046	-	21%	705,891	N	N	N	-
1	King Sun New Tech Co., Ltd.	Hong We Technology Co., Ltd.	2	235,297	16,225	16,225	14,010	-	9%	705,891	N	N	N	-
1	King Sun New Tech Co., Ltd.	Hong Xi Energy Co., Ltd.	2	235,297	15,990	15,990	13,827	-	8%	705,891	N	N	N	-
1	King Sun New Tech Co., Ltd.	Hong We Energy Co., Ltd.	2	235,297	69,971	69,971	62,819	-	37%	705,891	N	N	N	-
1	King Sun New Tech Co., Ltd.	Hong Chang Technology Co., Ltd.	2	235,297	28,880	28,880	28,029	-	15%	705,891	N	N	N	-
1	King Sun New Tech Co., Ltd.	Hong Yi Energy Co., Ltd.	2	235,297	13,300	13,300	12,493	-	7%	705,891	N	N	N	-
2	Achien Technology Co., Ltd.	Yizhou (Dongguan) adhesive Product Co., Ltd.	2	5,728,814	30,000	30,000	16,556	-	1%	5,728,814	N	N	Y	-
2	Achien Technology Co., Ltd.	Achien Technology Holdings Co., Ltd.	2	5,728,814	590,130	408,590	-	-	7%	5,728,814	N	N	N	-
2	Achien Technology Co., Ltd.	Ningbo Yum Chie Co., Ltd.	2	5,728,814	205,785	202,320	-	-	3%	5,728,814	N	N	Y	-
2	Achien Technology Co., Ltd.	Wanzhiu Adhesive Product (Jiangsu) Co., Ltd.	2	5,728,814	128,044	125,888	-	-	2%	5,728,814	N	N	Y	-
2	Achien Technology Co., Ltd.	ACHRM Technology (Vietnam) Ltd.	2	5,728,814	66,410	62,860	-	-	1%	5,728,814	N	N	N	-
3	ACHRM Technology (Shanghai) Limited	Wanzhiu Adhesive Product (Jiangsu) Co., Ltd.	2	826,122	607,614	-	-	-	0%	826,122	N	N	Y	-
4	Yom Chie Distribution Co., Ltd.	Viztoy Union It Co., Ltd.	2	154,136	82,500	82,500	13,750	-	11%	308,272	N	N	N	-
4	Yom Chie Distribution Co., Ltd.	Sue Bay Co., Ltd.	2	154,136	2,475	2,475	-	-	0%	308,272	N	N	N	-
5	Viztoy Union It Co., Ltd.	Su Zhou Ming Ju Trade Co., Ltd.	2	29,550	22,480	22,480	-	-	17%	39,101	N	N	Y	-

Note1: The numbers filled in for the loans provided by the Company or subsidiaries are as follows:
(1) The Company is '0'.
(2) The subsidiaries are numbered in order starting from '1'.
Note2: Relationship between the endorser/guarantee and the party being endorsed/guaranteed is classified into the following seven categories:
(1) Having business relationship.
(2) The endorser/guarantee parent company owns directly or indirectly more than 50% voting shares of the endorser/guaranteed subsidiary.
(3) The endorsed/guaranteed company owns directly and indirectly more than 50% voting shares of the endorser/guarantee parent company.
(4) The endorser/guarantee parent company owns directly and indirectly more than 90% voting shares of the endorsed/guaranteed company.
(5) Mutual guarantee of the trade made by the endorsed/guaranteed company or joint contractor as required under the construction contract.
(6) Due to joint venture, each shareholder provides endorsements/guarantees to the endorsed/guaranteed company in proportion to its ownership.
(7) Joint guarantee of the performance guarantee for pre-sold home sales contract as required under the Consumer Protection Act.
Note 3: Fill in limit on endorsements/guarantees provided for a single party and ceiling on total amount of endorsements/guarantees provided as prescribed in the endorser/guarantee company's "Procedures for Provision of Endorsements and
Guarantees", and state each individual party to which the endorsements/guarantees have been provided and the calculation for ceiling on total amount of endorsements/guarantees provided in the footnote.
(1) Calculation for ceiling on endorsements/guarantees provided by the Company to others and to a single party is based on $150\%$ and $100\%$ of the Company's net equity in the latest financial statements, respectively.
(2) Calculation for ceiling on endorsements/guarantees provided by King Sun New Tech Co., Ltd. to others and to a single party is based on $300\%$ and $100\%$ of King Sun New Tech Co., Ltd.'s net equity in the latest financial statements, respectively.
(3) Calculation for ceiling on endorsements/guarantees provided by ACHEM Technology Corporation to others and to a single party is based on $100\%$ of stockholders' equity in the latest financial statements.
(4) For ACHEM Technology (Shanghai) Limited, the ceiling on total amount of endorsements/guarantees provided and the limit on endorsements/guarantees provided for a single party are both calculated based on $100\%$ of net assets disclosed on the latest financial statements.
(5) Calculation for ceiling on endorsements/guarantees provided by Yom Chie Distribution Co., Ltd. to others and to a single party is based on $40\%$ and $20\%$ of Yom Chie Distribution Co., Ltd.'s net equity in the latest financial statements, respectively.
(6) Calculation for ceiling on endorsements/guarantees provided by Viztoy Union It Co., Ltd. to others and to a single party is based on $40\%$ and $20\%$ of Viztoy Union It Co., Ltd.'s net equity in the latest financial statements, respectively.
Note 4: Fill in the year-to-date maximum outstanding balance of endorsements/guarantees provided as of the reporting period.
Note 5: Fill in the amount approved by the Board of Directors or the chairman if the chairman has been authorised by the Board of Directors based on subparagraph 8, Article 12 of the Regulations Governing Leaning of Funds and Making of
Endorsements/Guarantees by Public Companies.
Note 6: Fill in the actual amount of endorsements/guarantees used by the endorsed/guaranteed company.
Note 7: Fill in 'Y' for those cases of provision of endorsements/guarantees by listed parent company to subsidiary and provision by subsidiary to listed parent company, and provision to the party in Mainland China.

Yum Chiu Co., Ltd. and Subsidiaries

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures)

December 31, 2025

(Expressed in thousands of New Taiwan Dollars unless otherwise specified)

Table 3

Securities held by	Type of securities (Note 1)	Name of securities	Relationship with the securities issuer (Note 2)	General ledger account	As of December 31, 2024				Provision (Note 4)
					Number of shares (Including stock dividends)	Bank value (Note 3)	Ownership	Fair value
The Company	Common stock	Taiwan Semiconductor Manufacturing Co., Ltd.	None	Financial assets at fair value through other comprehensive income - current	142,000	$220,100	0.00%	$220,100	101,000
The Company	Common stock	Quanta Computer Inc.	"	"	638,000	173,536	0.02%	173,536	544,000
The Company	Common stock	MediaTek Inc.	"	"	227,000	324,610	0.01%	324,610	119,000
The Company	Common stock	EVERGREEN MAKING CORP. (TAIWAN) LTD.	"	"	1,710,000	324,900	0.08%	324,900	1,548,000
The Company	Bank debenture	APO	None	Financial assets at fair value through other comprehensive income - non-current	-	92,781	-	92,781	-
The Company	Bank debenture	ELV	"	"	-	91,751	-	91,751	-
The Company	Bank debenture	ICE	"	"	-	86,532	-	86,532	-
The Company	Bank debenture	MCD	"	"	-	91,556	-	91,556	-
The Company	Bank debenture	EDF	"	"	-	50,209	-	50,209	-
YEM CHIO	Common stock	Yum Chiu Co., Ltd.	Ultimate parent company	Financial assets at fair value through other comprehensive income - non-current	17,158,726	243,654	2.54%	243,654	-
Achum Technology Co., Ltd.	Common stock	Taiwan Semiconductor Manufacturing Co., Ltd.	None	Financial assets at fair value through profit or loss - current	14,000	21,700	0.00%	21,700	-
Achum Technology Co., Ltd.	Common stock	Quanta Computer Inc.	"	"	99,000	26,928	0.00%	26,928	-
Achum Technology Co., Ltd.	Common stock	MediaTek Inc.	"	"	35,000	50,050	0.00%	50,050	-
Achum Technology Co., Ltd.	Common stock	EVA Airways Corporation	"	"	639,000	23,355	0.01%	23,355	-
Achum Technology Co., Ltd.	Bank debenture	Citigroup Inc.	None	Financial assets at fair value through other comprehensive income - non-current	-	57,722	-	55,774	-
Achum Technology Co., Ltd.	Bank debenture	UNH	"	"	-	90,943	-	90,943	-
Achum Technology Co., Ltd.	Bank debenture	LLV	"	"	-	90,113	-	90,113	-
Achum Technology Co., Ltd.	Bank debenture	KO	"	"	-	92,866	-	92,866	-
Achum Technology Co., Ltd.	Bank debenture	BACR	"	"	-	76,123	-	76,123	-
Achum Technology Co., Ltd.	Bank debenture	EDF	"	"	-	82,736	-	82,736	-
Achum Technology Co., Ltd.	Bank debenture	KEA	"	"	-	77,713	-	77,713	-
Achum Technology Co., Ltd.	Bank debenture	T-A T&T	"	"	-	79,875	-	79,875	-

Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities within the scope of IFRS 9 'Financial instruments.'
Note 2: Leave the column blank if the issuer of marketable securities is non-related party.
Note 3: Fill in the amount after adjusted at fair value and deducted by accumulated impairment for the marketable securities measured at fair value; fill in the acquisition cost or amortised cost deducted by accumulated impairment for the marketable securities not measured at fair value.
Note 4: The number of shares of securities and their amounts pledged as security should be stated in the footnote if the securities presented herein have such conditions.
Note 5: This table presents the marketable securities that the Company has determined to require disclosure in accordance with the materiality principle.

Yem Chio Co., Ltd. and Subsidiaries

Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more

For the year ended December 31, 2025

(Expressed in thousands of New Taiwan Dollars unless otherwise specified)

Table 4

Purchaser/seller	Counterparty	Relationship with the counterparty	Transaction				Differences in transaction terms compared to third party transactions (Note 1)		Notes/accounts receivable (payable)		Footnote (Note 2)
			Purchases (sales)	Amount	Percentage of total purchases (sales) (%)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable) (%)
The Company	Achem Technology Co., Ltd.	Subsidiary	Sales	$452,056	23.70%	30 days after monthly billings	Note 4	Note 4	$16,026	6.46%	None
The Company	Yem Chio Distribution Co., Ltd.	Subsidiary	Sales	102,449	5.37%	90 days after monthly billings	Note 4	Note 4	32,774	13.21%	None
The Company	ACHEM Industry America Inc.	An indirect subsidiary	Sales	219,988	11.53%	60 days after monthly billings	Note 4	Note 4	25,291	10.19%	None
Achem Technology Co., Ltd.	Foshan Inder Adhesive Product Co., Ltd.	Subsidiary	Purchases	110,756	4.05%	100 days after monthly billings	Note 4	Note 4	39,686	11.86%	None
Achem Technology Co., Ltd.	Ningbo Yem Chio Co., Ltd.	Subsidiary	Purchases	115,382	4.22%	60 days after monthly billings	Note 4	Note 4	51,461	15.38%	None
Achem Technology Co., Ltd.	ACHEM Industry America Inc.	Subsidiary	Sales	198,381	4.68%	60 days after monthly billings	Note 4	Note 4	37,549	4.67%	None
Wanchio Adhesive Product (Jiangsu) Co., Ltd.	Achem Technology Co., Ltd.	Parent company	Sales	280,610	12.79%	60 days after monthly billings	Note 4	Note 4	39,163	5.27%	None
Wanchio Adhesive Product (Jiangsu) Co., Ltd.	ACHEM Technology (Dongguan) Adhesive Products Co., Ltd.	Brother company	Sales	239,989	10.94%	60 days after monthly billings	Note 4	Note 4	59,730	8.04%	None

Note1: If terms of related-party transactions are different from third-party transactions, explain the differences and reasons in the 'Unit price' and 'Credit term' columns.
Note 2: In case related-party transaction terms involve advance receipts (prepayments) transactions, explain in the footnote the reasons, contractual provisions, related amounts, and differences in types of transactions compared to third-party transactions.
Note 3: Paid-in capital referred to herein is the paid-in capital of parent company. In the case that shares were issued with no par value or a par value other than NTS10 per share, the $20\%$ of paid-in capital shall be replaced by $10\%$ of equity attributable to owners of the parent in the calculation.
Note 4: The description of the transaction is not significantly different with third parties and as such, no need to disclose.

Yem Chio Co., Ltd. and Subsidiaries

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

December 31, 2025

(Expressed in thousands of New Taiwan Dollars unless otherwise specified)

Table 5

Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31, 2025 (Note 1)	Turnover rate (Note 2)	Overdue receivables		Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts
					Amount	Action taken
Achem Technology Co., Ltd.	YEM CHIO Construction Co., Ltd.	Brother company	Other receivables	$370,578	-	-	-	-	-
Achem Technology Holdings Co., Ltd.	ACHEM Technology (Vietnam) Ltd.	An indirect subsidiary	Other receivables	132,421	-	-	-	-	-
Achem Technology Holdings Co., Ltd.	WAN CHIO	Associate	Other receivables	160,807	-	-	-	-	-
ASIACHEM International Corporation	The Company	Parent company	Other receivables	341,394	-	-	-	-	-
ASIACHEM International Corporation	Achem Technology Holdings Co., Ltd.	Brother company	Other receivables	505,132	-	-	-	-	-
ASIACHEM International Corporation	Wanchio Adhesive Product (Jiangsu) Co., Ltd.	Brother company	Other receivables	169,521	-	-	-	-	-
ACHEM Technology China	The Company	Parent company	Other receivables	317,971	-	-	-	-	-
ACHEM Technology (Dongguan) Adhesive Products Co., Ltd.	Wanchio Adhesive Product (Jiangsu) Co., Ltd.	Brother company	Other receivables	209,207	-	-	-	-	-

Note 1: Fill in separately the balances of accounts receivable - related parties, notes receivable - related parties, other receivables-related parties.
Note 2: Paid-in capital referred to herein is the paid-in capital of parent company. In the case that shares were issued with no par value or a par value other than NT$10 per share, the 20% of paid-in capital shall be replaced by 10% of equity attributable to owners of the parent in the calculation.

Yem Chio Co., Ltd. and Subsidiaries

Significant inter-company transactions during the reporting period

For the year ended December 31, 2025

(Expressed in thousands of New Taiwan Dollars unless otherwise specified)

Table 6

No. (Note 1)	Company name	Counterparty	Relationship (Note 2)	Transaction
				Account	Amount	Transaction terms	Percentage of consolidated operating revenues or total assets (Note 3)
0	The Company	Achem Technology Co., Ltd.	(1)	Sales	$452,056	30 days after monthly billings	3.41%
0	The Company	ACHEM Industry America Inc.	(1)	Sales	219,988	60 days after the receipt of shipment	1.66%
1	Achem Technology Co., Ltd.	ACHEM Industry America Inc.	(1)	Sales	198,381	60 days after monthly billings	1.49%
2	ASIACHEM International Corporation	Achem Technology Holdings Co., Ltd.	(3)	Other receivables	505,132	Depends on negotiation	1.37%
3	Wanchio Adhesive Product (Jiangsu) Co., Ltd.	Achem Technology Holdings Co., Ltd.	(2)	Sales	280,610	60 days after monthly billings	2.11%
3	Wanchio Adhesive Product (Jiangsu) Co., Ltd.	ACHEM Technology (Dongguan) Adhesive Products Co., Ltd.	(3)	Sales	239,989	60 days after monthly billings	1.81%

Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:
(1) Parent company is '0'.
(2) The subsidiaries are numbered in order starting from '1'.

Note 2: Relationship between transaction company and counterparty is classified into the following three categories:
(1) Parent company to subsidiary.
(2) Subsidiary to parent company.
(3) Subsidiary to subsidiary.

Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts.

Note 4: The Company may decide to disclose or not to disclose transaction details in this table based on the Materiality Principle.

Note 5: Individual transaction amounts that do not reach 1% of the total consolidated assets or total consolidated revenue will not be disclosed; or disclosure will be based on assets and revenue.

Yem Chio Co., Ltd. and Subsidiaries

Information on invoices (not including invoices in Mainland China)

For the year ended December 31, 2025

(Expressed in thousands of New Taiwan Dollars unless otherwise specified)

Table 7

Investor	Investor (Note 1-2)	Location	Main business activities	Initial investment amount		Shares held as at December 31, 2025			Net profit (loss) of the investor for the year ended December 31, 2025	Investment income (loss) recognised by the Company for the year ended December 31, 2025 (Note 3)	Footnote
				Balance as at December 31, 2025	Balance as at December 31, 2024	Number of shares	Ownership (%)	Carrying amount
The Company	YEM CHIO	BVI	Investment holdings	$1,480,919	$1,480,919	47,117,523	100.00%	$124,324	$18,236	$1,004	Subsidiary
The Company	YEM CHIO travel Co., Ltd.	Taiwan	Hotel management and related business	25,740	25,740	-	100.00%	(93,539)	(10,656)	(10,656)	Subsidiary
The Company	YEM CHIO Construction Co., Ltd.	Taiwan	Undertaking civil engineering and hydraulic engineering	345,077	345,077	34,507,664	100.00%	269,081	(20,149)	(12,896)	Subsidiary
The Company	Achem Technology Co., Ltd.	Taiwan	Manufacturing of adhesives and polystyrene sheets; investment holdings	3,999,048	3,999,048	399,904,848	100.00%	5,675,384	219,221	266,492	Subsidiary
The Company	Yem Chio Distribution Co., Ltd.	Taiwan	Sales of wrapping material	170,563	170,563	12,870,060	38.86%	(35,104)	142,565	54,653	Subsidiary
The Company	Yaenm Development Co., Ltd.	Taiwan	Operating real estate related business	2,940	2,940	1,320,000	40.00%	914	-	6,858	Subsidiary
The Company	King Sun New Tech Co., Ltd.	Taiwan	Solar power system engineering, manufacturing and sales of solar-related electronic equipment	224,210	224,210	7,300,000	66.36%	251,813	63,248	41,973	Subsidiary
YEM CHIO	ASIA PLASTICS	BVI	Investment holdings	365,625	365,625	11,632,500	45.00%	18,545	(11,917)	-	An indirect subsidiary
YEM CHIO	WAN CHIO	BVI	Investment holdings	920,899	920,899	40,400,000	68.47%	(107,643)	(2,327)	-	An indirect subsidiary
Achem Technology Co., Ltd.	BVI Achem Technology International Co., Ltd.	BVI	Investment holdings	365,672	365,672	23,269	100.00%	1,489,472	73,150	-	An indirect subsidiary
Achem Technology Co., Ltd.	Achem Technology Holdings Co., Ltd.	BVI	Investment of high technology industry	3,172,046	3,172,046	100,924	100.00%	4,393,722	141,407	-	An indirect subsidiary
Achem Technology Co., Ltd.	Chuangle Investment Co., Ltd.	Taiwan	Investment holdings	249,287	249,287	826,089	100.00%	81,037	10,098	-	An indirect subsidiary
Achem Technology Co., Ltd.	Achem Opto-Electronic Corporation	Taiwan	Manufacturing of electronic parts and components	362,935	362,935	24,575,000	100.00%	511,313	(17,456)	-	An indirect subsidiary
Achem Technology Co., Ltd.	Yem Chio Distribution Co., Ltd.	Taiwan	Sales of wrapping material	168,253	168,253	7,465,000	22.54%	244,055	142,565	-	An indirect subsidiary
Achem Technology Co., Ltd.	Pantech Tape Co., Ltd.	Taiwan	Manufacturing and sales of various adhesives products	41,160	41,160	1,200,000	100.00%	57,195	63,602	-	An indirect subsidiary
Achem Technology Holdings Co., Ltd.	Cayman Achem Opto-Electronic Technology (Americas) Co., Ltd.	Cayman Islands	Investment of high technology industry	428,799	428,799	13,643,000	100.00%	1,094,511	(57,895)	-	An indirect subsidiary
Achem Technology Holdings Co., Ltd.	Cayman Achem Technology (China) Co., Ltd.	Cayman Islands	Investment of high technology industry	2,143,811	2,143,811	68,209,075	100.00%	3,486,089	246,874	-	An indirect subsidiary
Achem Technology Holdings Co., Ltd.	Achem Technology (Vietnam) Ltd.	Vietnam	Manufacturing and sales of various adhesives products	377,160	377,160	-	100.00%	101,127	(40,531)	-	An indirect subsidiary
Achem Technology Holdings Co., Ltd.	WAN CHIO	BVI	Investment holdings	584,598	584,598	18,600,000	31.53%	(49,569)	(2,327)	-	An indirect subsidiary
Achem Technology Holdings Co., Ltd.	ASIA PLASTICS	BVI	Investment holdings	549,035	549,035	14,217,500	55.00%	22,666	(11,917)	-	An indirect subsidiary
Achem Technology Holdings Co., Ltd.	Achem Technology (Malaysia) Co., Ltd.	Malaysia	Business of import, export and distribution	4,369	4,369	353,152	90.00%	30,578	3,654	-	An indirect subsidiary
ACHEM Technology America Ltd.	Achem Industry America	U.S.A.	Manufacturing and sales of various adhesives products	273,441	273,441	50,000	100.00%	974,006	(57,643)	-	An indirect subsidiary
Achem Opto-Electronic Corporation	BVI Achem Opto-Electronic Holdings Co., Ltd.	BVI	Investment of high technology industry	66,531	66,531	4,234	100.00%	531,263	(12,020)	-	An indirect subsidiary
King Sun New Tech Co., Ltd.	Hong Yi Energy Co., Ltd.	Taiwan	Renewable energy power generation industry	5,000	5,000	-	100.00%	(282)	1,583	-	An indirect subsidiary
King Sun New Tech Co., Ltd.	Hong How Technology Co., Ltd.	Taiwan	Renewable energy power generation industry	8,000	8,000	-	100.00%	827	2,541	-	An indirect subsidiary
King Sun New Tech Co., Ltd.	Hong Er Technology Co., Ltd.2	Taiwan	Renewable energy power generation industry	5,000	5,000	-	100.00%	4,899	(10)	-	An indirect subsidiary
King Sun New Tech Co., Ltd.	Hong Wu Technology Co., Ltd.	Taiwan	Renewable energy power generation industry	2,000	2,000	200,000	100.00%	(1,150)	578	-	An indirect subsidiary
King Sun New Tech Co., Ltd.	Hong Ba Technology Co., Ltd.	Taiwan	Renewable energy power generation industry	4,000	4,000	400,000	50.00%	2,687	1,894	-	An indirect subsidiary
King Sun New Tech Co., Ltd.	Hong Ning International Co., Ltd.	Taiwan	Renewable energy power generation industry	7,000	7,000	-	100.00%	7,125	1,472	-	An indirect subsidiary
King Sun New Tech Co., Ltd.	Hong Cheng Technology Co., Ltd.	Taiwan	Renewable energy power generation industry	5,000	5,000	500,000	100.00%	(1,638)	720	-	An indirect subsidiary

Investor	Investor (Note 1 - 2)	Location	Main business activities	Initial investment amount		Shares held as at December 31, 2025			Net profit (loss) of the investor for the year ended December 31, 2025	Investment income (loss) recognised by the Company for the year ended December 31, 2025 (Note 3)	Footnote
				Balance as at December 31, 2025	Balance as at December 31, 2024	Number of shares	Ownership (%)	Carrying amount
King Sun New Tech Co., Ltd.	Hong Kai Technology Co., Ltd.	Taiwan	Renewable energy power generation industry	5,000	5,000	500,000	100.00%	2,211	258	-	An indirect subsidiary
King Sun New Tech Co., Ltd.	Hong He Energy Co., Ltd.	Taiwan	Renewable energy power generation industry	20,000	20,000	2,000,000	100.00%	4,240	1,442	-	An indirect subsidiary
King Sun New Tech Co., Ltd.	Hong Chang Technology Co., Ltd.	Taiwan	Renewable energy power generation industry	2,000	2,000	200,000	100.00%	1,967	(25)	-	An indirect subsidiary
King Sun New Tech Co., Ltd.	Rong Cheng Energy Co., Ltd.	Taiwan	Renewable energy power generation industry	50	50	5,000	100.00%	(23)	(63)	-	An indirect subsidiary
Yem Chio Distribution Co., Ltd.	Victory Union It Co., Ltd.	Taiwan	Sales of various adhesives products	110,109	-	6,165,135	55.08%	117,460	4,320	-	An indirect subsidiary
Yem Chio Distribution Co., Ltd.	Star Ray Co., Ltd.	Taiwan	Sales of various adhesives products	34,421	-	1,704,000	55.06%	35,972	8,653	-	An indirect subsidiary
Yem Chio Distribution Co., Ltd.	KING MATERIAL CO., LTD	Taiwan	Sales of various adhesives products	39,674	-	1,818,260	55.02%	40,394	(1,097)	-	An indirect subsidiary
Victory Union It Co., Ltd.	Liansheng Vietnam Technology Co.,Ltd.	Vietnam	Sales of various adhesives products	6,122	-	-	100.00%	6,711	(141)	-	An indirect subsidiary
Victory Union It Co., Ltd.	Victory Union IT (Thailand) Co.,Ltd.	Thailand	Sales of various adhesives products	9,971	-	10,000,000	100.00%	8,506	(1,439)	-	An indirect subsidiary

Note 1: If a public company is equipped with an overseas holding company and takes consolidated financial report as the main financial report according to the local law rules, it can only disclose the information of the overseas holding company about the disclosure of related overseas investee information.
Note 2: If situation does not belong to Note 1, fill in the columns according to the following regulations:
(1) The columns of 'Investor', 'Location', 'Main business activities', Initial investment amount' and 'Shares held as at December 31, 2025' should fill orderly in the Company's (public company's) information on investees and every
directly or indirectly controlled investor's investment information, and note the relationship between the Company (public company) and its investor each (ex. direct subsidiary or indirect subsidiary) in the 'footnote' column.
(2) The 'Net profit (loss) of the investee for the year ended December 31, 2025' column should fill in amount of net profit (loss) of the investee for this period.
(3) The 'Investment income (loss) recognised by the Company for the year ended December 31, 2025' column should fill in the Company (public company) recognised investment income (loss) of its direct subsidiary and recognised investment income (loss) of its investor accounted for under the equity method for this period. When filling in recognised investment income (loss) of its direct subsidiary, the Company (public company) should
confirms that direct subsidiary's net profit (loss) for this period has included its investment income (loss) which shall be recognised by regulations.
Note 3: Indirect subsidiary's income is recognised by subsidiary.

Yem Chio Co., Ltd. and Subsidiaries

Information on investments in Mainland China - Basic Information

For the year ended December 31, 2025

(Expressed in thousands of New Taiwan Dollars unless otherwise specified)

Table 8

Investor in Mainland China	Main business activities	Paid-in capital	Investment method (Note 1)	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2025	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year ended December 31, 2025		Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2025	Net income of investee for the year ended December 31, 2025	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31, 2025 (Note 2)	Book value of investments in Mainland China as of December 31, 2025	Accumulated amount of investment income remitted back to Taiwan as of December 31, 2025	Footnote (Note 2)
					Remitted to Mainland China	Remitted back to Taiwan
Ningbo Yem Chio Co., Ltd.	Manufacturing and sales of adhesives and polystyrene	$352,958	2	8900,497	$-	$-	8900,497	$ (9,335)	100.00%	$ (9,335)	$59,182	$-	B
Manor Package (Shanghai) Material Technology Co., Ltd.	Import and export trading of packaging materials	191,723	1	191,723	-	-	191,723	(205)	61.40%	(205)	119,720	-	B
ACHEM Technology (Wuhan) Limited	Manufacturing and sales of various adhesives products	32,059	1	36,595	-	-	36,595	368	61.40%	368	6,768	-	B
Foshan Inder Adhesive Product Co., Ltd.	Manufacturing and sales of various adhesives products	443,964	2	174,688	-	-	174,688	22,015	62.30%	13,715	382,487	-	B
Fuzhou Fuda Plastic Products Co., Ltd.	Discontinued operations	40,859	2	33,002	-	-	33,002	-	100.00%	-	-	-	B
ACHEM Technology (Chengdu) Limited	Manufacturing and sales of various adhesives products	4,715	2	4,715	-	-	4,715	95	100.00%	95	10,750	-	B
ACHEM Technology (Dongguan) Adhesive Products Co., Ltd.	Manufacturing and sales of various adhesives products	236,102	2	236,102	-	-	236,102	78,198	100.00%	78,198	991,311	-	B
ACHEM Technology (Shanghai) Limited	Manufacturing and sales of various adhesives products	506,023	2	506,023	-	-	506,023	(7,999)	100.00%	(7,999)	550,756	-	B
Winda Opto-Electronics Co., Ltd.	Manufacturing and sales of polarizing film, photoelectric material, optical thin-film and polarizing adhesives	640,876	2	156,408	-	-	156,408	(81,249)	30.43%	(24,724)	953,157	422,734	B
Wan Chiu Petrochemical (Jiangsu) Co., Ltd.	Discontinued operations	2,514,400	2	1,505,497	-	-	1,505,497	1,664	100.00%	1,664	4,602	-	B
Wanzhiu Adhesive Product (Jiangsu) Co., Ltd.	Manufacturing and sales of various adhesives products	1,219,490	2	942,900	-	-	942,900	170,334	100.00%	170,334	1,537,978	-	B
Dongguan Mingying new material Co.,LTD	Sales of various adhesives products	78,575	1	78,575	-	-	78,575	6,930	33.82%	2,906	94,107	-	B
Su Zhou Ming Ju Trade Co., Ltd.	Sales of various adhesives products	35,968	2	-	-	-	-	2,748	33.82%	1,931	72,102	-	B
Xiamen Lianju Plastic Material Co., Ltd.	Sales of various adhesives products	28,287	1	29,701	-	-	29,701	5,353	33.81%	527	44,281	-	B
Suzhou King Material Co.,Ltd.	Sales of various adhesives products	25,144	1	25,144	-	-	25,144	3,395	33.78%	1,353	37,150	5,919	B
Company name	Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2025	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA)	Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA (Note 3)
---	---	---	---
Yem Chio Co., Ltd.	$1,136,725	$1,157,155	$8,134,967
ACHEM Technology Corporation	$3,187,470	$3,187,470	$3,590,601
Yem Chiu Distribution Co., Ltd.	$228,318	$228,318	$462,407
Victory Union II Co., Ltd.	$78,575	$78,575	$88,651
Star Ray Co., Ltd.	$29,701	$29,701	$80,000
King Material Co., Ltd.	$25,144	$25,144	$80,000

Note 1: Investment methods are classified into the following three categories: fill in the number of category each case belongs to:
(1) Directly invest in a company in Mainland China.
(2) Through investing in an existing company in the third area, which then invested in the investee in Mainland China.
(3) Others.
Note 2: In the 'Investment income (loss) recognised by the Company for the year ended December 31, 2025' column:
(1) It should be indicated if the investee was still in the incorporation arrangements and had not yet any profit during this period.
(2) Indicate the basis for investment income (loss) recognition in the number of one of the following four categories:
A. The financial statements were audited and attested (reviewed) by international accounting firm which has cooperative relationship with accounting firm in R.O.C.
B. The financial statements were audited (reviewed) by R.O.C. parent company's CPA.
C. The financial statements for the same periods ended were not audited (reviewed) by auditors.
D. Others.
Note 3: (1) Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2025 is USD 36,167 thousand and investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA) is USD 36,817 thousand.
(2) ACHEM Technology Corporation's accumulated amount of remittance to Mainland China as of December 31, 2025 was USD 101,415 thousand, and the amount approved by MOEA was USD 101,415 thousand.
(3) Yem Chiu Distribution Co., Ltd.'s accumulated amount of remittance to Mainland China as of December 31, 2025 was USD 7,264 thousand, and the amount approved by MOEA was USD 7,264 thousand.
(4) Victory Union II Co., Ltd.'s accumulated amount of remittance to Mainland China as of December 31, 2025 was USD 2,500 thousand, and the amount approved by MOEA was USD 2,500 thousand.
(5) Star Ray Co., Ltd.'s accumulated amount of remittance to Mainland China as of December 31, 2025 was USD 945 thousand, and the amount approved by MOEA was USD 945 thousand.
(6) King Material Co., Ltd.'s accumulated amount of remittance to Mainland China as of December 31, 2025 was USD 800 thousand, and the amount approved by MOEA was USD 800 thousand.

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YC — Audit Report / Information 2025

52391_rns_2026-06-04_2b08fdb5-0946-46bf-b9fe-f47c71c815ed.pdf

INDEPENDENT AUDITORS' REPORT TRANSLATED FROM CHINESE

Opinion

Basis for Opinion

Key Audit Matters

Valuation of inventory

Valuation of investment property

Other matter

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

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

Others

Notice to Readers

Yem Chio Co., Ltd. and Subsidiaries

Consolidated Statements of Changes in Equity

Financial asset measured at fair value through profit or loss

Financial asset measured at fair value through other comprehensive income

Financial assets measured at amortised cost

B. Impairment of financial assets

Financial liabilities

Financial liabilities at amortised cost

Derecognition of financial liabilities

Group as a lessor

(15) Intangible assets

(16) Impairment of non-financial assets

B. Land development and resale

(19) Borrowing costs

(20) Post-employment benefits

Yem Chio Co., Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements (Continued)

(18)Expected credit losses

8. Pledged assets

9. Significant contingencies and unrecognised contractual commitments

Financial liabilities

(2) Financial risk management objectives and policies

(3) Market risk

Foreign currency risk

Interest rate risk

Equity price risk

(4) Credit risk management

Yem Chio Co., Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements (Continued)

Information on products and services

Geographical information

Major customer information

Yem Chio-Co., Ltd. and Subsidiaries

Yinn Chiu Co., Ltd. and Subsidiaries

Yum Chiu Co., Ltd. and Subsidiaries

Yem Chio Co., Ltd. and Subsidiaries

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