YEM CHIO CO., LTD.
PARENT COMPANY ONLY 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 and for information purpose only, the auditors' report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors' report and 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 parent company only financial statements of Yem Chio Co., Ltd. (the "Company"), which comprise the parent company only balance sheets as of December 31, 2025 and 2024, and the parent company only statements of comprehensive income, changes in equity and cash flows for the year then ended December 31, 2025 and 2024, and the notes to the parent company only financial statements, including a summary of material accounting policies (collectively referred to as the "parent company only financial statements").

In our opinion, based on our audits and the reports of other auditors (please refer to the Other Matter), the accompanying parent company only financial statements present fairly, in all material respects, the parent company only financial position of the Company as of December 31, 2025, and its parent company only financial performance and cash flows for the year then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing 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 parent Financial Statements section of our report. We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China 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 parent company only financial statements for the year ended December 31, 2025. These matters were addressed in the context of our audit of the parent company only financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matters for the Company's 2025 parent company only financial statements are stated as follows:

Valuation of inventory

The Company 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 Company’s inventories were measured at the lower of cost and net realisable value. Considering the Company’s inventories were significant to the parent company only financial statements and the determination of net realizable value for the inventories involves judgements and estimates, and the aforementioned matters exist in the Company, 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 Company 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(5) of the parent company only 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 $1,355,730 and 1,343,740, both constituting 5% of total assets, respectively. The Company’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(9) of the parent company only 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 investees accounted for under the equity method which were audited by other auditors. Therefore, our opinion expressed herein, insofar as it relates to the amounts included in respect of these investments, is based solely on the reports of the other auditors. Total accounted for under the equity method of these investees amounted to NT$1,105,711 and NT$1,255,679, constituting 4% and 5% of total assets as at December 31, 2025 and 2024, respectively, and the comprehensive gains (loss) amounted to (NT$149,969) and NT$48,670, constituting (68)% and 5% of net income before tax for the year ended December 31, 2025 and 2024, respectively.

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

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

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

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

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

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

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

Identify and assess the risks of material misstatement of the parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control of the Company.
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 Company. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the parent company only financial statements, including the accompanying notes, and whether the parent company only 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 Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.

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 parent company only 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.

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

Notice to Readers

The accompanying parent company only 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 parent company only financial statements are those generally accepted and applied in the Republic of China.

Accordingly, the accompanying parent company only 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.
Parent Company Only 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)	$ 526,442	2	$ 317,214	1
1120	Financial assets at fair value through other comprehensive income - current	6(2) and 8	1,699,929	6	1,422,985	5
1136	Financial assets at amortised cost - current	6(3) and 8	312,073	1	645,901	2
1150	Notes receivable, net	6(4) and 16	17,076	-	20,623	-
1170	Accounts receivable, net	6(4) and 16	152,516	-	218,852	1
1180	Accounts receivable - related parties	7	78,522	-	136,368	1
1200	Other receivables		85,737	-	5,053	-
1210	Other receivables - related parties	6(19) and 7	497,674	2	12,599	-
130X	Inventories	5, 6(5), 7 and 8	12,995,523	46	11,440,487	42
1460	Non-current Assets Held for Sale	6(6)	176,472	1	-	-
1470	Other current assets	6(19) and 7	378,192	1	422,224	2
11XX	Total current assets		16,920,156	59	14,642,306	54
Non-current assets
1517	Financial assets at fair value through other comprehensive income - non-current	6(2)	418,426	2	5,597	-
1535	Financial assets at amortised cost - non-current	6(3) and 8	13,608	-	13,561	-
1550	Investments accounted for under equity method	6(6)	6,321,516	22	6,653,720	25
1600	Property, plant and equipment, net	6(7) and 8	3,337,529	12	4,152,042	16
1755	Right-of-use assets	6(17)	50,273	-	53,415	-
1760	Investment property, net	5, 6(9), 6(17), 7 and 8	1,355,730	5	1,343,740	5
1780	Intangible assets, net		77	-	99	-
1840	Deferred income tax assets	6(20)	41,327	-	36,314	-
1900	Other non-current assets	8	29,846	-	29,685	-
15XX	Total non-current assets		11,568,332	41	12,288,173	46
1XXX	Total assets		$ 28,488,488	100	$ 26,930,479	100

(Continued)

Yem Chio Co., Ltd.
Parent Company Only 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(10) and 8	$ 2,963,895	11	$ 3,602,000	13
2110	Short-term notes and bills payable	6(11)	400,000	1	50,000	-
2130	Current contract liabilities	6(15) and 7	269,637	1	311,314	1
2150	Notes payable		335	-	51,407	-
2170	Accounts payable		111,459	-	154,456	1
2180	Accounts payable - related parties	7	17,160	-	15,941	-
2200	Other payables		320,921	1	165,254	1
2220	Other payables - related parties	7	756,852	3	598,477	2
2230	Current income tax liabilities		9,541	-	42,385	-
2260	Liabilities directly associated with non current assets held for sale	6(6)	138,402	-	-	-
2280	Lease liabilities - current	6(17)	2,734	-	2,673	-
2320	Current portion of long-term liabilities	6(12) and 8	5,066,683	18	3,961,199	15
2399	Other current liabilities		21,415	-	33,165	-
21XX	Total current liabilities		10,079,034	35	8,988,271	33
Non-current liabilities
2540	Long-term borrowings	6(12) and 8	5,281,908	19	4,404,300	17
2570	Deferred income tax liabilities	6(20)	96,437	-	86,487	-
2580	Lease liabilities - non-current	6(17)	49,323	-	52,057	-
2600	Other non-current liabilities	6(7) and 6(13)	157,052	1	175,502	1
25XX	Total non-current liabilities		5,584,720	20	4,718,346	18
2XXX	Total liabilities		15,663,754	55	13,706,617	51
Equity attributable to owners of parent
	Share capital	6(14)
3110	Common stock		6,767,572	24	6,792,085	25
	Capital surplus	6(14)
3200	Capital surplus		2,761,420	10	2,755,697	10
	Retained earnings	6(14)
3310	Legal reserve		803,177	3	676,958	3
3320	Special reserve	6(7)	631,140	2	560,736	2
3350	Unappropriated retained earnings		1,853,693	6	2,323,104	9
	Other equity interest
3400	Other equity interest		251,727	1	529,627	2
3500	Treasury stocks	6(14)	( 243,995 )	(1)	( 414,345 )	(2)
3XXX	Total equity		12,824,734	45	13,223,862	49
3X2X	Total liabilities and equity		$ 28,488,488	100	$ 26,930,479	100

The accompanying notes are an integral part of these parent company only financial statements.

Yem Chio Co., Ltd.
Parent Company Only 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(15) and 7	$ 2,949,407	100	$ 5,363,933	100
5000	Operating costs	6(5), 6(18) and 7	( 2,824,899)	( 96)	( 4,878,651)	( 91)
5900	Net operating margin		124,508	4	485,282	9
	Operating expenses	6(13), 6(16), 6(17) and 6(18)
6100	Selling expenses		( 134,560)	( 5)	( 176,524)	( 3)
6200	General and administrative expenses		( 130,350)	( 4)	( 150,631)	( 3)
6000	Total operating expenses		( 264,910)	( 9)	( 327,155)	( 6)
6900	Operating profit (loss)		( 140,402)	( 5)	158,127	3
	Non-operating income and expenses
7100	Interest income	7	26,716	1	13,287	-
7010	Other income	6(19) and 7	201,380	6	140,156	2
7020	Other losses and gains	6(19) and 7	( 2,039)	-	( 712,103)	( 13)
7050	Finance costs	6(19) and 7	( 213,585)	( 7)	( 173,086)	( 3)
7060	Share of profit or loss of associates accounted for using the equity method	6(7)	347,428	12	1,489,642	28
7000	Total non-operating income and expenses		359,900	12	757,896	14
7900	Net income before tax		219,498	7	916,023	17
7950	Income tax expense	6(20)	( 47,443)	( 1)	( 99,134)	( 2)
8200	Net Income		$ 172,055	6	$ 816,889	15
	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	6(13)	$ 262	-	$ 1,193	-
	Unrealised gains (losses) from equity instruments investments measured at fair value through other comprehensive income		133,333	5	595,238	11
8316	Share of other comprehensive income (loss) of associates which will not be reclassified subsequently to profit or loss		8,247	-	10,788	-
8320	Income tax related to components of other comprehensive income that will not be reclassified subsequently to profit or loss	6(20)	( 52)	-	( 239)	-
8349	Other comprehensive income (loss) that will not be reclassified to profit or loss		141,790	5	606,980	11
	Components of other comprehensive income that will be reclassified to profit or loss
8361	Financial statements translation differences of foreign operations		( 92,872)	( 4)	237,932	5
	Share of other comprehensive income (loss) of associates which may be reclassified subsequently to profit or loss		24,523	1	35,485	1
8370	Other comprehensive income (loss) that will be reclassified to profit or loss		( 68,349)	( 3)	273,417	6
8300	Total other comprehensive income (loss) for the year		$ 73,441	2	$ 880,397	17
8500	Total comprehensive income for the year		$ 245,496	8	$ 1,697,286	32
	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 parent company only financial statements.

Yem Chio Co., Ltd.

Parent Company Only Statements of Changes in Equity
For the Years Ended December 31, 2025 and 2024

	Capital		Retained Earnings				Other Equity Interest			Treasury stocks	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	Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income	Revaluation property surplus
2024
Balance at January 1, 2024	$ 6,582,467	$ 66,857	$ 2,718,738	$ 568,926	$ 511,756	$ 1,868,613	($ 364,795)	$ 19,751	$ 439,576	($ 414,345)	$ 11,997,544
Net income	-	-	-	-	-	816,889	-	-	-	-	816,889
Other comprehensive income	-	-	-	-	-	3,479	272,932	603,986	-	-	880,397
Total comprehensive income	-	-	-	-	-	820,368	272,932	603,986	-	-	1,697,286
Appropriations and distribution of retained earnings for the year ended December 31, 2023
Cash dividends	-	-	-	-	-	(650,688)	-	-	-	-	(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	-	(441,823)	-	-	-
Conversion of convertible corporate bonds	-	142,761	6,026	-	-	-	-	-	-	-	148,787
Conversion of certificates of bonds-to-share	209,618	(209,618)	-	-	-	-	-	-	-	-	-
Stock options forfeited	-	-	12,589	-	-	-	-	-	-	-	12,589
Adjustments for dividends subsidiaries received from parent company	-	-	18,423	-	-	-	-	-	-	-	18,423
From share of changes in equities of subsidiaries	-	-	(79)	-	-	-	-	-	-	-	(79)
Balance at December 31, 2024	$ 6,792,085	$ -	$ 2,755,697	$ 676,958	$ 560,736	$ 2,323,104	($ 91,863)	$ 181,914	$ 439,576	($ 414,345)	$ 13,223,862
2025
Balance at January 1, 2025	$ 6,792,085	$ -	$ 2,755,697	$ 676,958	$ 560,736	$ 2,323,104	($ 91,863)	$ 181,914	$ 439,576	($ 414,345)	$ 13,223,862
Net income	-	-	-	-	-	172,055	-	-	-	-	172,055
Other comprehensive income	-	-	-	-	-	(2,774)	(91,747)	167,962	-	-	73,441
Total comprehensive income	-	-	-	-	-	169,281	(91,747)	167,962	-	-	245,496
Appropriations and distribution of retained earnings for the year ended December 31, 2024
Cash dividends	-	-	-	-	-	(663,487)	-	-	-	-	(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)	-	-	-	-	-	-	170,350	-
Disposal of equity investment valued at fair value through other comprehensive income	-	-	-	-	-	345,007	-	(345,007)	-	-	-
Disposal by a subsidiary of equity instruments designated at fair value through other comprehensive income	-	-	-	-	-	9,108	-	(9,108)	-	-	-
From share of changes in equities of subsidiaries	-	-	440	-	-	-	-	-	-	-	440
Adjustments for dividends subsidiaries received from parent company	-	-	18,423	-	-	-	-	-	-	-	18,423
Balance at December 31, 2025	$ 6,767,572	$ -	$ 2,761,420	$ 803,177	$ 631,140	$ 1,853,693	($ 183,610)	($ 4,239)	$ 439,576	($ 243,995)	$ 12,824,734

The accompanying notes are an integral part of these parent company only financial statements.

Yem Chio Co., Ltd.
Parent Company Only 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	$ 219,498	$ 916,023
Adjustments
Adjustments to reconcile profit
Depreciation	164,317	201,083
Amortisation	22	22
Interest expenses	213,585	173,086
Interest income	( 26,716)	( 13,287)
Share of profit or loss of associates accounted for using the equity method	( 347,428)	( 1,489,642)
Gain on disposal of property, plant and equipment	125	( 30)
Impairment loss on property, plant, and equipment	-	164,459
Gain on fair value adjustment of investment property	( 11,990)	( 29,373)
Employees' compensation	-	605,880
Dividend income	( 110,510)	( 52,533)
Changes in operating assets and liabilities
Changes in operating assets
Notes receivable, net	3,547	17,522
Accounts receivable, net	66,336	17,458
Accounts receivable - related parties	57,846	( 25,232)
Other receivables	( 80,685)	15,567
Other receivables - related parties	( 560)	19,120
Inventories	( 569,953)	( 2,223,390)
Prepayments	1,912	9,422
Other current assets	2,009	119,623
Changes in operating liabilities
Notes payable	( 51,072)	( 43,637)
Current contract liabilities	96,725	( 365,594)
Accounts payable	( 42,997)	46,721
Accounts payable - related parties	1,219	( 2,011)
Other payables	154,430	51,223
Other payables - related parties	( 214)	639
Other current liabilities	( 11,750)	( 7,968)
Other non-current liabilities	( 4,071)	( 129)
Cash inflow used in from operations	( 276,375)	( 1,894,978)
Interest received	25,958	13,287
Dividend received	722,091	52,533
Interest paid	( 337,769)	( 279,896)
Income taxes paid	( 35,293)	( 34,890)
Net cash provide (used in) by operating activities	98,612	( 2,143,944)

(Continued)

Yem Chio Co., Ltd.
Parent Company Only 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 investments accounted for using equity method	-	( 130,270)
Acquisition of financial assets at fair value through other comprehensive income	( 3,225,436)	( 2,153,226)
Proceeds from disposal of financial assets at fair value through other comprehensive income	2,681,694	2,540,312
Return of investment from liquidation of investee company accounted for using the equity method	-	5,060
Return of capital from reduction of capital in investee company accounted for using the equity method	-	128,701
Decrease (increase) in financial assets at amortised cost	333,780	( 203,235)
(Increase) decrease in other receivables - related parties	( 483,758)	665,022
Acquisition of property, plant and equipment	( 375,347)	( 183,746)
Proceeds from disposal of property, plant and equipment	85	30
Increase in other non-current assets	( 160)	( 24,720)
Net cash (used in) provided by investing activities	( 1,069,142)	643,928
CASH FLOWS FROM FINANCING ACTIVITIES
Decrease in short-term borrowings	( 638,105)	( 585,493)
Increase (decrease) in short-term notes and bills payable	350,000	( 350,000)
Increase in other payables - related parties	152,135	522,756
Proceeds from long-term borrowings	10,026,139	7,566,999
Repayment of long-term borrowings	( 8,043,047)	( 5,020,778)
Repayments of corporate bonds payable	-	( 405)
Repayment of lease liabilities	( 3,877)	( 3,877)
Payment of cash dividends	( 663,487)	( 650,688)
Net cash provided by financing activities	1,179,758	1,478,514
Net increase (decrease) in cash and cash equivalents	209,228	( 21,502)
Cash and cash equivalents at beginning of year	317,214	338,716
Cash and cash equivalents at end of year	$ 526,442	$ 317,214

The accompanying notes are an integral part of these parent company only financial statements.

Yem Chio Co., Ltd.
Notes to the Parent Company Only 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 is 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 parent company only 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 Company 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 Company.

(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 Company 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 Company.

Yem Chio Co., Ltd.
Notes to the Parent Company Only 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 Company 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 Company’s financial statements were authorized for issue, the local effective dates are to be determined by FSC. The Company assessed above standards and interpretations have no material impact on the Company.

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.
Notes to the Parent Company Only 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 parent company only financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers ("the Regulations").

(2) Basis of preparation

The Company prepared parent company only financial statements in accordance with Article 21 of the Regulations, which provided that the profit or loss and other comprehensive income for the period presented in the parent company only financial statements shall be the same as the profit or loss and other comprehensive income attributable to stockholders of the parent presented in the consolidated financial statements for the period, and the total equity presented in the parent company only financial statements shall be the same as the equity attributable to the parent company presented in the consolidated financial statements. Therefore, the Company accounted for its investments in subsidiaries using equity method and, accordingly, made necessary adjustments.

The parent company only 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 parent company only financial statements are expressed in thousands of New Taiwan Dollars ("NT$") unless otherwise stated.

(3) Names and relationship of related parties

Names and relationship of related parties	Abbreviated company name	Note
Subsidiaries of the Company
Yem Chio (BVI) Co., Ltd.	YEM CHIO

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

Names and relationship of related parties	Abbreviated company name	Note
ACHEM Technology Corporation	-
Yem Chio Distribution Co., Ltd.	-
(Formerly known as Xin Chio Global Co., Ltd.)
Yem Chio Hotel Co., Ltd.	-
(Original Name:UINN Hotel)
Yem Chio Construction Co., Ltd.	-
(Original Name:Wong Chio Development, Ltd.)
King Sun New Tech Co., Ltd.	-	Note 6
Subsidiary of YEM CHIO
Wan Chio (BVI) Co., Ltd.	WAN CHIO
Subsidiaries of ACHEM Technology Corporation
ASIACHEM International Corporation	-
ACHEM Opto-Electronic Corporation	-	Note 5
Valueline Investment Corporation	-
ACHEM Technology Holdings Limited	-
Pantech Tape Co., Ltd.	-	Note 4
Subsidiaries of Yem Chio Distribution Co., Ltd.
Master Package (Shanghai) Material Technology Co., Ltd.	-
ACHEM Technology (Wuhan) Limited	-
Victory Union IT Co., Ltd.	-	Note 11
Star Ray Co., Ltd.	-	Note 12
King Material Co., Ltd.	-	Note 13
Subsidiary of WAN CHIO
Wan Chio Petrochemical (Jiangsu) Co., Ltd.	-	Note 10
Subsidiary of ASIACHEM International Corporation
Fuzhou Fuda Plastic Products Co., Ltd.	-	Note 1
Subsidiaries of ACHEM Technology Holdings Limited
ACHEM Technology China	-
ACHEM Technology Americas Ltd.	-
ACHEM Technology (M) Sdn. Bhd.	-
ACHEM Technology (Vietnam) Ltd.	-
ACHEM Technology (India) Ltd.	-	Note 2
Asia Plastics (BVI) Co., Ltd.	ASIA PLASTICS
Subsidiary of ASIA PLASTICS
ACHEM Technology (Ningbo) Co., Ltd.	-
Subsidiaries of ACHEM Technology China
ACHEM Technology (Chengdu) Limited	-
ACHEM Technology (Dongguan) Adhesive Products Co., Ltd.	-
Wanchio Adhesive Product (Jiangsu) Co., Ltd.	-
ACHEM Technology (Shanghai) Limited	-	Note 3

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

Names and relationship of related parties	Abbreviated company name	Note
Subsidiary of ACHEM Technology Americas Ltd.
ACHEM Industry America Inc.	-
Subsidiary of Wanchio Adhesive Product (Jiangsu) Co., Ltd.
Foshan Inder Adhesive Product Co., Ltd.	-	Note 7
Subsidiary of ACHEM Opto-Electronic Corporation
AOE Holding Limited	-
Subsidiary of 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.	-
Hong Chang Technology Co., Ltd.	-
Rong Cheng Energy Co., Ltd.	-	Note 8
Subsidiary of Victory Union It Co., Ltd.
Mingyin New Materials Co., Ltd.	-
Liansheng Technology Vietnam Co., Ltd.	-
Victory Union IT(Thailand) Co., Ltd.	-	Note 14
Subsidiary of Mingyin New Materials Co., Ltd.
Suizen Trade Co., Ltd.	-
Subsidiary of Star Ray Co., Ltd.
Xiamen Lienchi Co., Ltd.	-
Subsidiary of King Material Co., Ltd.
Suizen Ying Electronic Materials Co., Ltd.	-
Associate
Winda Opto-Electronics Co., Ltd	-
Yanrun Development Co., Ltd.	-	Note 9
Other related parties
Li, Zhi-Xian	-
Yang, Jun-Wei
Yan, Ming-Hui	-
Key management of the Company
Li, Qi-Zheng	-
Li, Shu-Wei	-

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

Note 1: Fuzhou Fuda completed the liquidation and deregistration process in December 2024.
Note 2: ACHEM Technology (India) Ltd. underwent liquidation in May 2017.
Note 3: LANDMART completed its liquidation process in September 2024. The 100% equity interest in ACHEM Technology (Shanghai) previously held by LANDMART was transferred to ACHEM Technology (China), a wholly owned subsidiary of LANDMART's 100% parent company.
Note 4: In May 2023, ACHEM Technology Corporation acquired 100% shareholding of Pantech Tape Co., Ltd. for a cash consideration of $41,160. The registration of the change was completed on May 5, 2023.
Note 5: ACHEM Technology Corporation entered into a shares purchase agreement with ACHEM Opto-Electronic Corporation's non-controlling interest. ACHEM Technology Corporation acquired an additional 12.91% shareholding of ACHEM Opto-Electronic Corporation for a total cash consideration of USD 1,280 thousand. The shareholding ratio increased from 87.09% to 100%. The registration of the change was completed on October 13, 2023.
Note 6: 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.
Note 7: 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 8: Rong Cheng Energy Co., Ltd. was established in December 2024
Note 9: Yanrun Development Co., Ltd. underwent liquidation in March 2024.
Note 10: Wan Chio Petrochemical (Jiangsu) Co., Ltd. underwent liquidation in December 2024.
Note 11: 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.
Note 12: 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.
Note 13: 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.
Note 14: Victory Union IT (Thailand) Co., Ltd. was approved for establishment in January 2025.

(4) Foreign currency transactions

The Company's parent company only financial statements are presented in NT$, which is also the Company's functional currency.

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

Transactions in foreign currencies are initially recorded by the Company 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.

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 and accumulated in the foreign operation of equity.

(6) Current and non-current distinction

An asset is classified as current when:

A. The Company expects to realize the asset, or intends to sell or consume it, in its normal operating cycle

B. The Company holds the asset primarily for the purpose of trading

C. The Company 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.
Notes to the Parent Company Only 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 Company expects to settle the liability in its normal operating cycle
B. The Company 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 Company does not have the right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period.

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 Company 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 a financial asset or financial liability not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial assets or financial liabilities.

A. Financial instruments: Recognition and Measurement

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

The Company 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 Company's business model for managing the financial assets and
(b) the contractual cash flow characteristics of the financial asset.

Yem Chio Co., Ltd.
Notes to the Parent Company Only 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 Company applies the credit-adjusted effective interest rate to the amortised cost of the financial asset from initial recognition.

Yem Chio Co., Ltd.

Notes to the Parent Company Only Financial Statements (Continued)

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

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

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 Company 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 Company 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 Company applies the effective interest rate to the amortised cost of the financial asset in subsequent reporting periods.

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

B. Impairment of financial assets

The Company 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 Company 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 Company 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 Company 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 Company measures the loss allowance at an amount equal to lifetime expected credit losses.

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

At each reporting date, the Company 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.

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 Company has transferred the asset and substantially all the risks and rewards of the asset have been transferred
(c) The Company 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 Company classifies the instrument issued as a financial liability or an equity instrument in accordance with the substance of the contractual arrangement and the definitions of a financial liability, and an equity instrument.

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 Company evaluates the terms of the convertible bonds issued to determine whether it contains both a liability and an equity component. Furthermore, the Company 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.

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

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.

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.
Notes to the Parent Company Only 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 Company.

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 act 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 Company 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.

Costs of buildings and land held for sale are stated at acquisition cost basis during construction. In accordance with IFRSs, the related interest expense is capitalised.

(11) Investments accounted for using the equity method

The Company'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 Company has significant influence.

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

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 Company’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 Company has incurred legal or constructive obligations or made payments on behalf of the associate. Unrealized gains and losses resulting from transactions between the Company and the associate are eliminated to the extent of the Company’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 Company’s percentage of ownership interests in the associate, the Company 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 Company’s interest in an associate is reduced or increased as the Company 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 Company disposes of the associate.

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

The Company 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 Company 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 Company estimates:

(1) 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
(2) 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.

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

Upon loss of significant influence over the associate, the Company 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 Company 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	1-8 years
Office equipment	1-10 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.

(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.

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

(14) Leases

The Company 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 Company 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 Company 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 Company 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 Company for that component, or a similar component, separately. If an observable stand-alone price is not readily available, the Company estimates the stand-alone price, maximising the use of observable information.

Company as a lessee

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

At the commencement date, the Company 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 Company 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:

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 Company 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.

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

After the commencement date, the Company 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 Company 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 Company measures the right-of-use asset at cost less any accumulated depreciation and any accumulated impairment losses. That is, the Company measures the right-of-use applying a cost model.

If the lease transfers ownership of the underlying asset to the Company by the end of the lease term or if the cost of the right-of-use asset reflects that the Company will exercise a purchase option, the Company depreciates the right-of-use asset from the commencement date to the end of the useful life of the underlying asset. Otherwise, the Company 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 Company 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 Company accounted for as short-term leases or leases of low-value assets, the Company 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 Company 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.

Company as a lessor

At inception of a contract, the Company 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 Company 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.

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

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

The Company 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) Impairment of non-financial assets

The Company 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 Company 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.

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 Company 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.

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

(16) 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.

(17) 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 Company has objective evidence that all criteria for acceptance have been satisfied.

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

(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.

B. Land development and resale

(a) The Company 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 Company 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.

(18) 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.

(19) Post-employment benefits

All regular employees of the Company 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. Therefore, fund assets are not included in the Company's the parent company only financial statements.

For the defined contribution plan, the Company 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.

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:

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

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

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.

(20) 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 at the reporting date.

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; at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and at the time of the transaction, does not give rise to equal taxable and deductible temporary differences.
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:

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

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; at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and at the time of the transaction, does not give rise to equal taxable and deductible temporary differences.

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.

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 Company 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 Company’s parent company only 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.

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

(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 Company must determine the net realisable value of inventories on balance sheet date using judgements and estimates. The Company 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.

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 Company's strategy might affect the value of investment property.

Contents of significant accounts

(1) Cash and cash equivalents

	December 31, 2025	December 31, 2024
Cash on hand and revolving funds	$192	$399
Checking accounts and demand deposits	526,250	316,815
Total	$526,442	$317,214

The Company 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 Company's Cash and cash equivalents that were pledged as collateral were reclassified to financial assets at amortized cost. Details are provided in Notes 6(3) and 8.

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

(2) 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	$400,134	$-
Valuation adjustments	12,695	-
Subtotal	412,829	-
Equity instruments
Unlisted shares	$1,719	$1,719
Valuation adjustments	3,878	3,878
Subtotal	5,597	5,597
Total	$418,426	$5,597

The Company 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 $1,705,526 and $1,428,582 as of December 31, 2025 and 2024, respectively.

In consideration of the Company's investment strategy adjustments in 2025 and 2024, the disposal of equity investments with fair values of $2,681,694 and $2,540,312, respectively. The cumulative gains reclassified from other equity to retained earnings amounted to $345,007 and $441,823, respectively.

The Company'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:

	Year Ended December 31
	2025	2024
Related to investments held at the end of year	$104,813	$46,707
Related to investments derecognized during the year	5,697	5,826
Dividend income recognised during the year	$110,510	$52,533

Yem Chio Co., Ltd.

Notes to the Parent Company Only Financial Statements (Continued)

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

Details of the '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).

(3) Financial assets at amortised cost

	December 31, 2025	December 31, 2024
Current items:
Restricted demand deposits	$312,073	$318,051
Restricted time deposits	-	327,850
Total	$312,073	$645,901
Non-current items:
Restricted demand deposits	$1,805	$1,793
Restricted time deposits	11,803	11,768
Total	$13,608	$13,561

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 Company'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).

(4) Notes and accounts receivable

	December 31, 2025	December 31, 2024
Notes receivable	$17,076	$20,623
Less: Loss allowance	-	-
Total	$17,076	$20,623
Accounts receivable	$168,348	$234,684
Less: Loss allowance	(15,832)	(15,832)
Total	$152,516	$218,852

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

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

	December 31, 2025		December 31, 2024
	Accounts receivable	Notes receivable	Accounts receivable	Notes receivable
Not past due	$150,291	$17,076	$171,764	$20,623
Overdue:
Up to 30 days	6,066	-	50,083	-
31 to 90 days	7,516	-	11,231	-
91 to 180 days	4,475	-	1,065	-
Over 180 days	-	-	541	-
Less: loss allowance	(15,832)	-	(15,832)	-
Total	$152,516	$17,076	$218,852	$20,623

The above ageing analysis was based on past due date.

No notes and accounts receivable were pledged. Loss allowance and information relating to credit of risk are provided in Note 6(16) and Note 12(4).

(5) Inventories

	December 31, 2025	December 31, 2024
Packaging material sales channel business:
Raw materials and supplies	$162,393	$145,039
Finished goods	102,544	131,630
Subtotal	264,937	276,669
Land development & construction business:
Construction-in-progress	4,702,307	4,076,717
Land held for building	7,444,228	6,922,030
Real estate held for sale	554,955	56,738
Prepayments of land	29,096	108,333
Subtotal	12,730,586	11,163,818
Total	$12,995,523	$11,440,487

The cost of inventories recognised in expenses amounts to $2,824,899 and $4,878,651 for the years ended December 31, 2025 and 2024.

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.

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

(6) 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 $138,402 received has been classified under liabilities directly associated with non current assets held for sale.

(7) Investments accounted for using the equity method

Details are listed below:

Investees	December 31, 2025		December 31, 2024
	Amount	Ownership %	Amount	Ownership %
Investments in subsidiaries:
ACHEM Technology Corporation	$5,675,384	100.00%	$6,006,899	100.00%
Wong Chio Development, Ltd.	269,081	100.00%	281,977	100.00%
Yem Chio Distribution Co., Ltd.	(35,104)	38.86%	(53,933)	38.86%
UINN HOTEL	(93,539)	100.00%	(82,883)	100.00%
YEM CHIO	124,324	100.00%	121,020	100.00%
King Sun New Tech Co., Ltd.	251,813	66.36%	243,824	66.36%
Investments in associates:
Yanrun Development Co., Ltd.	914	40.00%	(5,944)	40.00%
Total	$6,192,873		$6,510,960
Recorded under assets	$6,321,516		$6,653,720
Recorded under liabilities	(128,643)		(142,760)
Total	$6,192,873		$6,510,960

Refer to Note 4(3) in the consolidated financial statements for the year ended December 31, 2025 for the information regarding the Company's subsidiaries.

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

The share of profit of these subsidiaries and associates accounted for using the equity method amount to $347,428 and $1,489,642 for the years ended December 31, 2025 and 2024, respectively.

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

(8) Property, plant and equipment

	Land	Buildings	Machinery and equipment	Transportation equipment	Office equipment	Construction in progress and equipment awaiting examination	Total
January 1, 2025
Cost	$1,748,230	$1,950,077	$3,255,864	$2,136	$52,191	$210,539	$7,219,037
Accumulated depreciation and impairment	-	(754,856)	(2,262,416)	(1,969)	(47,754)	-	(3,066,995)
Total	$1,748,230	$1,195,221	$993,448	$167	$4,437	$210,539	$4,152,042
January 1, 2025	$1,748,230	$1,195,221	$993,448	$167	$4,437	$210,539	$4,152,042
Additions	-	-	-	-	-	375,347	375,347
Disposals	-	-	(210)	-	-	-	(210)
Transfers	-	2,652	31,292	300	438	(34,682)	-
Reclassifications	(712,531)	(79,247)	(176,009)	-	-	(60,688)	(1,028,475)
Depreciation	-	(42,994)	(115,991)	(59)	(2,131)	-	(161,175)
December 31, 2025	$1,035,699	$1,075,632	$732,530	$408	$2,744	$490,516	$3,337,529
December 31, 2025
Cost	$1,035,699	$1,821,796	$1,877,663	$2,436	$48,204	$490,516	$5,276,314
Accumulated depreciation and impairment	-	(746,164)	(1,145,133)	(2,028)	(45,460)	-	(1,938,785)
Total	$1,035,699	$1,075,632	$732,530	$408	$2,744	$490,516	$3,337,529

Yem Chio Co., Ltd.

Notes to the Parent Company Only Financial Statements (Continued)

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

	Land	Buildings	Machinery and equipment	Transportation equipment	Office equipment	Construction in progress and equipment awaiting examination	Total
January 1, 2024
Cost	$1,035,699	$1,813,704	$3,171,477	$2,136	$50,706	$59,849	$6,133,571
Accumulated depreciation and impairment	-	(659,452)	(1,947,463)	(1,905)	(45,387)	-	(2,654,207)
Total	$1,035,699	$1,154,252	$1,224,014	$231	$5,319	$59,849	$3,479,364
January 1, 2024	$1,035,699	$1,154,252	$1,224,014	$231	$5,319	$59,849	$3,479,364
Additions	-	-	-	-	-	183,746	183,746
Transfers	-	6,380	85,207	-	1,484	(93,071)	-
Reclassifications	712,531	78,786	-	-	-	60,015	851,332
Depreciation	-	(44,197)	(151,314)	(64)	(2,366)	-	(197,941)
Impairment	-	-	(164,459)	-	-	-	(164,459)
December 31, 2024	$1,748,230	$1,195,221	$993,448	$167	$4,437	$210,539	$4,152,042
December 31, 2024
Cost	$1,748,230	$1,950,077	$3,255,864	$2,136	$52,191	$210,539	$7,219,037
Accumulated depreciation and impairment	-	(754,856)	(2,262,416)	(1,969)	(47,754)	-	(3,066,995)
Total	$1,748,230	$1,195,221	$993,448	$167	$4,437	$210,539	$4,152,042

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 Company plans to sell the thin film production line. After evaluation in the 2024, an impairment loss of $164,459 thousand is expected to be recognized for the related real estate, plant, and equipment. The total impairment loss has been recognized in the consolidated statement of comprehensive income.

No borrowing cost was capitalised as part of property, plant and equipment for the years ended December 31, 2025 and 2024.

Yem Chio Co., Ltd.

Notes to the Parent Company Only Financial Statements (Continued)

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

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.

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

(9) Investment property

The Company’s investment property mainly comprises office buildings and hotels located in Neihu District, Zhongzheng District, Shihlin District, Taipei City, etc. The Company earns rental income from leasing and the lease terms are between 1 to 13 years.

	2025	2024
At January 1	$1,343,740	$2,165,699
Reclassifications	-	(851,332)
Gain on fair value adjustments	11,990	29,373
At December 31	$1,355,730	$1,343,740
	Year Ended December 31
	2025	2024
Rental income from investment property	$19,225	$21,668
Less: Direct operating expenses arising from the investment property that generated rental income during the year	(9,812)	(6,195)
Direct operating expenses arising from the investment property that did not generate rental income during the year	(513)	(493)
Total	$8,900	$14,980

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 hotel	Office building and hotel
Location	Neihu District, Zhongzheng District, Taipei City	Neihu District, Zhongzheng District, Taipei City
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

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

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 Company’s office buildings and plant is provided in the table below:

	Year Ended December 31
	2025	2024
Estimated rents (in dollars/per ping /monthly)	$1,306~$1,430	$1,279~$1,413
Local rents and rent quotes for similar objects	Approximate to estimated rents	Approximate to estimated rents
Income	$3,438~$15,787	$1,423-$16,344
Average leasing rates	89%~100%	89%~100%

The fair value of the Company’s office buildings and hotels 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. 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%~2.72%	2.43%-2.77%

The information on the Company’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.

(10) Short-term borrowings

	December 31, 2025	December 31, 2024
Unsecured bank borrowings	$1,663,895	$717,000
Secured bank borrowings	1,300,000	2,885,000
Total	$2,963,895	$3,602,000

Yem Chio Co., Ltd.

Notes to the Parent Company Only 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	2.01%~2.20%	1.83%-2.53%

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

(11) 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%

(12) Long-term borrowings

	December 31, 2025	December 31, 2024
Long-term bank borrowings
Secured borrowings	$8,463,591	$6,480,499
Unsecured borrowings	1,885,000	1,885,000
Subtotal	10,348,591	8,365,499
Less: Current portion - within one year or one operating cycle	(5,066,683)	(3,961,199)
Total	$5,281,908	$4,404,300
Range of the interest rates	1.98%~3.50%	1.98%~3.16%

A. In October 2020, the Company entered into a syndicated loan agreement with a syndicated banking Company 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:

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.

Yem Chio Co., Ltd.

Notes to the Parent Company Only Financial Statements (Continued)

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

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.

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

E. In addition to the collaterals provided as stated in Note 8, as of December 31, 2025, the Company had issued guarantee notes totalling $21,886,024 for the bank loans.

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

(13) Post-employment benefits

The Company has 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 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 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 Company will make contributions to cover the deficit by next March.

Yem Chio Co., Ltd.

Notes to the Parent Company Only 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	$29,987	$29,553
Fair value of plan assets	(8,601)	(4,234)
Net defined benefit liability	$21,386	$25,319

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	$29,553	$(4,234)	$25,319
Current service cost	-	-	-
Interest expense (income)	473	(68)	405
Subtotal	30,026	(4,302)	25,724
Remeasurements:
Return on plan assets	-	(262)	(262)
Changes in financial assumptions:	440	-	440
Experience adjustments	(439)	-	(439)
Subtotal	1	(262)	(261)
Total	30,027	(4,564)	25,463
Pension fund contribution	-	(4,077)	(4,077)
Paid pension	(40)	40	-
Balance at December 31, 2025	$29,987	$(8,601)	$21,386
	Present value of defined benefit obligations	Fair value of plan assets	Net defined benefit liability
---	---	---	---
Balance at January 1, 2024	$29,831	$(3,040)	$26,791
Current service cost	-	-	-
Interest expense (income)	358	(36)	322
Subtotal	30,189	(3,076)	27,113
Remeasurements:
Return on plan assets	-	(557)	(557)
Changes in financial assumptions:	(661)	-	(661)
Experience adjustments	25	-	25
Subtotal	(636)	(557)	(1,193)
Total	29,553	(3,633)	25,920
Pension fund contribution	-	(601)	(601)
Paid pension	-	-	-
Balance at December 31, 2024	$29,553	$(4,234)	$25,319

Yem Chio Co., Ltd.

Notes to the Parent Company Only 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 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 has no right to participate in managing and operating that fund and hence the Company is 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	1.30%	1.60%
Future salary increases	2.00%	2.00%

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	$(367)	$375	$304	$(299)
December 31, 2024
Effect on present value of defined benefit obligation	$(401)	$410	$340	$(335)

Yem Chio Co., Ltd.

Notes to the Parent Company Only 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 Company for the year ending December 31, 2026 amounted to $601.

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

Effective July 1, 2005, the Company has 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 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 pension costs under the defined contribution pension plan of the Company for the years ended December 31, 2025 and 2024 were $8,168 and $8,469, respectively.

(14) 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.

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

Yem Chio Co., Ltd.

Notes to the Parent Company Only Financial Statements (Continued)

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

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 Company Act, the capital reserve shall not be used except for making good the deficit of the Company. 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 Company 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 Company'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.

(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.

Yem Chio Co., Ltd.

Notes to the Parent Company Only Financial Statements (Continued)

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

(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.

(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.

Yem Chio Co., Ltd.

Notes to the Parent Company Only Financial Statements (Continued)

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

(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:

	Year ended December 31, 2024
	Amount	Dividend per share (in dollars)
Legal reserve	$126,129
Special reserve	70,404
Cash dividends	663,487	$1.00
Stock dividends	132,697	0.20
Total	$992,807

Yem Chio Co., Ltd.

Notes to the Parent Company Only Financial Statements (Continued)

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

(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	Dividend 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.

(i) Please refer to Note 6(18) on employee remuneration and directors' remuneration.

(15) Operating revenue

A. Disaggregation of revenue

The Company'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
	Packaging materials business segment	Real estate business segment	Total
Revenue from non-related parties	$1,121,599	$1,041,863	$2,163,462
Revenue from related parties	785,945	-	785,945
Total segment revenue	$1,907,544	$1,041,863	$2,949,407
Revenue recognition point:
At a point in time	$1,907,544	$1,041,863	$2,949,407
Gradually satisfy over time	-	-	-
Total	$1,907,544	$1,041,863	$2,949,407

Yem Chio Co., Ltd.

Notes to the Parent Company Only Financial Statements (Continued)

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

	Year ended December 31, 2024
	Packaging materials business segment	Real estate business segment	Total
Revenue from non-related parties	$1,529,137	$2,901,957	$4,431,094
Revenue from related parties	932,839	-	932,839
Total segment revenue	$2,461,976	$2,901,957	$5,363,933
Revenue recognition point:
At a point in time	$2,461,976	$2,901,957	$5,363,933
Gradually satisfy over time	-	-	-
Total	$2,461,976	$2,901,957	$5,363,933

B. Contract balances

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

	December 31, 2025	December 31, 2024	January 1, 2024
Contract liabilities - Advance sales receipts	$6,808	$8,623	$7,953
Contract liabilities - Pre-sold house	262,829	302,691	668,955
Total	$269,637	$311,314	$676,908

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 $199,401 and $481,575, respectively.

(16)Expected credit losses

A. The Company measures the loss allowance of its account receivables at an amount equal to lifetime expected credit losses. The Company 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
December 31, 2025
Expected loss rate	100%	0.66%	3.03%~30.51%
Carrying amount	$10,475	$150,291	$7,582	$168,348
Loss allowance	10,475	2,415	2,942	15,832

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

	individual	Group		Total
		Not past due	Up to 90 days past due
December 31, 2024
Expected loss rate	100%	0.66%	3.03%~9.28%
Carrying amount	$10,475	$171,764	$52,445	$234,684
Loss allowance	10,475	2,415	2,942	15,832

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

B. 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	$-	$15,832
Provision (reversal) of impairment loss	-
At December 31, 2025	$-	$15,832
At January 1, 2024	$-	$15,832
Provision (reversal) of impairment loss	-	-
At December 31, 2024	$-	$15,832

(17)Lease

A. Company as a lessee

The Company leases various assets including land. Rental contracts are typically made for periods of 19 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.

The Company'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	$50,273	$53,415

For the years ended December 31, 2025 and 2024, the Company's additions to right-of-use assets amounting to $0 and $498, respectively.

Yem Chio Co., Ltd.

Notes to the Parent Company Only Financial Statements (Continued)

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

(b) Lease liabilities

	December 31, 2025	December 31, 2024
Current	$2,734	$2,673
Non-current	49,323	52,057
Lease liabilities	$52,057	$54,730

Interest expenses on lease liabilities, recognised for the years ended December 31, 2025 and 2024, are provided in Note 6(19)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	$3,142	$3,142

(d) Income and costs relating to leasing activities

	Year ended December 31
	2025	2024
The expense relating to short-term leases	$1,701	$1,469

(e) Cash outflow relating to leasing activities

For the years ended December 31, 2025 and 2024, the Company's total cash outflows for leases amounting to $5,578 and $5,346, respectively.

B. Company as a lessor

Please refer to Note 6(8) for details on the Company's owned investment properties and investment properties held by the Company 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 Company leases various assets including land and buildings. Rental contracts are typically made for periods of 1 to 13 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 Company recognised rent income in the amount of $19,225 and $21,668, respectively, based on the operating lease agreement, which does not include variable lease payments.

Yem Chio Co., Ltd.

Notes to the Parent Company Only Financial Statements (Continued)

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

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

	December 31, 2025	December 31, 2024
2025	$-	$18,422
2026	18,839	13,995
2027	8,263	5,635
2028	6,620	3,992
2029	4,428	1,800
2030	2,771	1,200
After 2031	-	-
Total	$40,921	$45,044

(18) The Company'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	$ 122,371	$ 66,390	$ 188,761	$ 133,281	$ 79,425	$ 212,706
Labor and health insurance	15,399	7,853	23,252	15,691	7,057	22,748
Pension	4,486	4,087	8,573	5,003	3,788	8,791
Directors transportation expenses	-	654	654	-	520	520
Other employee benefit expenses	6,523	4,059	10,582	7,506	3,777	11,283
Depreciation	150,457	13,860	164,317	187,425	13,658	201,083
Amortisation	-	22	22	-	22	22

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.

Yem Chio Co., Ltd.

Notes to the Parent Company Only Financial Statements (Continued)

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

The employees' compensation for the year ended December 31, 2023 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 2024 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.

(19) Non-operating income and expenses

A. Other income

	Year ended December 31
	2025	2024
Rental income	$33,363	$36,133
Dividend income	110,510	52,533
Income from managerial services	52,032	45,325
Others	5,475	6,165
Total	$201,380	$140,156

B. Other gains and losses

	Year ended December 31
	2025	2024
(Losses) gains on disposal of property, plant and equipment	$(125)	$30
Impairment loss on property, plant and equipment	-	(164,459)
Foreign exchange (losses) gain, net	(9,551)	38,648
Gains on fair value adjustment of investment property	11,990	29,373
Handling fee	(3,313)	(9,815)
Bad debt write-off loss	-	(605,880)
Others	(1,040)	-
Total	$(2,039)	$(712,103)

The abovementioned bad debt write-off loss pertains to the 100% subsidiary, Wan Chio Petrochemical (Jiangsu) Co., Ltd., which was liquidated in December 2024. As a result, all receivables from the subsidiary were written off as a loss. Since Wan Chio Petrochemical (Jiangsu) Co., Ltd. also recognized other income due to the debt write-off, the company has accounted for its investment income from Wan Chio Petrochemical (Jiangsu) Co., Ltd. under the equity method. Consequently, after offsetting the amounts, there is no material impact on the company's financial position

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

C. Finance costs

	Year ended December 31
	2025	2024
Interest expenses from bank borrowings	$327,578	$272,992
Interest expenses of convertible corporate bonds	-	279
Internet expenses on lease liabilities	1,204	1,263
Interest expenses of related parties	17,883	11,137
Less: capitalisation of qualifying assets	(133,080)	(112,585)
Total	$213,585	$173,086

(20) 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	$-	$30,021
Tax on undistributed surplus earnings	10,969	13,631
Land value increment tax	38,682	25,164
Prior year income tax under estimation	(7,093)	(3)
Deferred tax expense:
Deferred tax expenses relating to origination and reversal of temporary differences	4,885	30,321
Total	$47,443	$99,134

Income tax recognised in other comprehensive income

	Year ended December 31
	2025	2024
Remeasurement of defined benefit obligations	$52	$239

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

Yem Chio Co., Ltd.

Notes to the Parent Company Only Financial Statements (Continued)

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

	Year ended December 31
	2025	2024
Income tax expenses at the statutory rate	$43,900	$183,204
Tax effect of revenues exempt and non-deductible expenses for tax purposes	(41,413)	(140,666)
Tax on undistributed surplus earnings	10,969	13,631
Land value increment tax	38,682	25,164
Prior year income tax under estimation	(7,093)	(3)
Additional income tax under the Alternative Minimum Tax Act	-	30,021
Others	2,398	(12,217)
Income tax expense	$47,443	$99,134

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	December 31
Temporary differences:
Deferred tax assets:
Provision for inventory obsolescence	$2,549	$-	$-	$2,549
Accrued pension liabilities	4,715	(40)	(52)	4,623
Deferred selling expenses	766	-	-	766
Deferred interest expenses	24,138	4,360	-	28,498
Others	4,146	745	-	4,891
Subtotal	36,314	5,065	(52)	41,327
Deferred tax liabilities:
Unrealised loss from sales	(11,108)	-	-	(11,108)
Fair value adjustment of investment property	(35,165)	(2,355)	-	(37,520)
Unrealised exchange gain	(6,715)	(7,595)	-	(14,310)
Gain on foreign investment	(33,499)	-	-	(33,499)
Subtotal	(86,487)	(9,950)	-	(96,437)
Total	$(50,173)	$(4,885)	$(52)	$(55,110)

Yem Chio Co., Ltd.
Notes to the Parent Company Only 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
Temporary differences:
Deferred tax assets:
Provision for inventory
obsolescence	$2,549	$-	$-	$2,549
Accrued pension liabilities	5,011	(57)	(239)	4,715
Unrealised exchange loss	3,602	(3,602)	-	-
Deferred selling expenses	9,478	(8,712)	-	766
Deferred interest expenses	27,355	(3,217)	-	24,138
Operating loss carryforward	17,625	(17,625)	-	-
Others	3,990	156	-	4,146
Subtotal	69,610	(33,057)	(239)	36,314
Deferred tax liabilities:
Unrealised loss from sales	(11,108)	-	-	(11,108)
Fair value adjustment of investment property	(44,616)	9,451	-	(35,165)
Unrealised exchange gain	-	(6,715)	-	(6,715)
Gain on foreign investment	(33,499)	-	-	(33,499)
Subtotal	(89,223)	2,736	-	(86,487)
Total	$(19,613)	$(30,321)	$(239)	$(50,173)

D. The assessment of income tax returns

As of December 31, 2025, the Company's income tax returns through 2023 have been assessed.

(21) 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.

Notes to the Parent Company Only 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.

(22) Supplemental cash flow information

Investing activities with partial cash payments:

	Year ended December 31
	2025	2024
Purchase of property, plant and equipment	$375,347	$183,746
Add: Beginning balance of equipment payable	38,300	38,300
Less: Ending balance of equipment payable	(38,300)	(38,300)
Cash payment during the year	$375,347	$183,746

Related party transactions

(1) Names and relationship of related parties: Please refer to Note 4(3).

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

(2) Significant transactions with the related parties

A. Operating revenue

	Year ended December 31
	2025	2024
Sales of products:
Subsidiaries	$785,945	$932,839

Goods are sold based on the price mutually agreed by both parties. The credit terms to related parties are 15 to 30 days and 60 to 120 days after monthly billings, compared to 60 to 120 days to third parties.

B. Purchases

	Year ended December 31
	2025	2024
Purchases of goods:
Subsidiaries	$35,736	$56,553

The prices of goods purchased from related parties are available to third parties. The payment terms are 30 days and 60 to 90 days after monthly billings.

C. Receivables from related parties

	December 31, 2025	December 31, 2024
Accounts receivable:
Subsidiaries	$78,522	$136,368
Other receivables:
Receivables from managerial services income
Subsidiaries	$13,916	$12,599
Loans to
Yem Chio Hotel Co., Ltd.	96,153	-
Yem Chio Distribution Co., Ltd.	370,578	-
ASIACHEM International Corporation	17,027	-
Total	$497,674	$12,599

Other receivables from related parties refer to raw materials purchased on behalf of related parties and loans to related parties. The other receivables are unsecured in nature, and there are no allowances for uncollectible accounts held against other receivables from related parties.

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

D. Payables to related parties

	December 31, 2025	December 31, 2024
Accounts payable:
Subsidiaries	$17,160	$15,941
Other payables:
Loans from
Yem Chio Distribution Co., Ltd.	$-	$60,118
ASIACHEM International Corporation	341,273	246,338
ACHEM Technology China	317,945	291,382
ACHEM Technology Holdings Limited	97,209	-
Headquarters cost allocation
ACHEM Technology Corporation	425	639
Total	$756,852	$598,477

Accounts payable arise mainly from purchase transactions. Other payables arise mainly from loans from subsidiaries including interest, etc.

E. Prepayments (recorded under inventory)

	December 31, 2025	December 31, 2024
Wong Chio Development, Ltd	$1,351,542	$1,186,359

F. Investment property

Details of investment property leased to Yem Chio Distribution and UINN HOTEL are as follow:

	December 31, 2025	December 31, 2024
Investment property	$7,000	$7,000
	Year ended December 31
	2025	2024
Rental income	$457	$1,886

In 2024, as the investment property is no longer leased to UINN Hotel, it has been reclassified to property, plant and equipment in the current period.

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

G. Pre-sold house contracts

	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.

H. Loans to/from related parties

(a) Loans from related parties

I. Outstanding balance

	December 31, 2025	December 31, 2024
Yem Chio Distribution Co., Ltd.	$-	$60,000
ASIACHEM International Corporation	336,301	242,609
ACHEM Technology China	314,300	290,147
ACHEM Technology Holdings Limited	94,290	-
Total	$744,891	$592,756

II. Interest expense

	Year ended December 31
	2025	2024
ACHEM Technology Corporation	$-	$2,422
Yem Chio Distribution Co., Ltd.	1,019	3,751
ASIACHEM International Corporation	6,022	3,729
ACHEM Technology China	7,922	1,235
ACHEM Technology Holdings Limited	2,920	-
Total	$17,883	$11,137

The loans from subsidiaries are repayable within 1 year and carry interest at 2.00% per annum for the years ended December 31, 2025 and 2024.

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

I. Other income

(a) Income from managerial services

	Year ended December 31
	2025	2024
Subsidiaries	$52,032	$45,325

(b) Rent income

	Year ended December 31
	2025	2024
Subsidiaries	$10,977	$12,528

J. Endorsements and guarantees provided by related parties

	December 31, 2025	December 31, 2024
Related parties	$17,718,407	$16,193,106

K. Endorsements and guarantees provided to related parties

	December 31, 2025	December 31, 2024
Related parties	$1,018,238	$193,993

(3) Key management personnel compensation

	Year ended December 31
	2025	2024
Short-term employee benefits	$12,898	$12,912
Post-employment benefits	456	449
Total	$13,354	$13,361

Pledged assets

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

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

Pledged assets	Carrying amount		Purpose
	December 31, 2025	December 31, 2024
Financial assets at fair value through other comprehensive income -current	$1,183,552	$1,036,776	Long-term borrowings, short-term borrowings
Financial assets at amortised cost - current	312,073	645,901	Borrowings, purchase and performance guarantee for construction
Financial assets at amortised cost - non-current - demand deposits	1,805	1,793	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
Inventories	12,703,209	11,000,466	Long-term borrowings, short-term borrowings
Property, plant and equipment	4,013,198	4,110,927	Long-term borrowings, short-term borrowings
Investment property	1,355,730	1,343,740	Long-term borrowings, short-term borrowings
Other non-current assets - guarantee deposits paid	29,845	29,685	Performance guarantee
Total	$19,611,215	$18,181,056

Significant contingencies and unrecognised contractual commitments

Except for those mentioned in Notes 6(12) and 7(3) the Company's significant commitments are as follows:

(1) As of December 31, 2025 and 2024, the unused letters of credit amounted to $66,143 and $171,234 for the purchase of goods and machinery as collateral, respectively.

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

	December 31, 2025	December 31, 2024
Consigned to construction companies to construct buildings	$37,488	$37,829

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

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 other comprehensive income	$2,118,355	$1,428,582
Financial assets at amortised cost
Cash and cash equivalents	526,442	317,214
Financial assets at amortised cost	325,681	659,462
Notes receivable	17,076	20,623
Accounts receivable (including related parties)	231,038	355,220
Other receivables (including related parties)	583,411	17,652
Guarantee deposits paid	29,845	29,685
Subtotal	1,713,493	1,399,856
Total	$3,831,848	$2,828,438

Financial liabilities

	December 31, 2025	December 31, 2024
Financial liabilities at amortised cost
Short-term borrowings	$2,963,895	$3,602,000
Short-term notes and bills payable	400,000	50,000
Notes payable	335	51,407
Accounts payable (including related parties)	128,619	170,397
Other payables (including related parties)	1,077,773	763,731
Long-term borrowings (within 1 year or 1 operating cycle)	10,348,591	8,365,499
Lease liabilities (within 1 year)	52,057	54,730
Guarantee deposits received	7,023	7,423
Total	$14,978,293	$13,065,187

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

(2) Financial risk management objectives and policies

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

Risk management is carried out by a central treasury department (Company treasury) under policies approved by the Board of Directors. Company treasury identifies, evaluates and hedges financial risks in close co-operation with the Company’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.

Foreign currency risk

The Company 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 Company 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 Company treasury.

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

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

When NTD strengthens/weakens against USD by 5%, the profit for the years ended December 31, 2025 and 2024 is decreased/increased by $5,454 and $14,458, 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 Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s long-term borrowings. During 2025 and 2024, the Company’s borrowings at variable rate were mainly denominated in NTD.

The Company’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. 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 $13,098 and $9,299, respectively.

Equity price risk

The Company’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 Company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Company.

The Company’s investments in equity securities comprise shares 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 $105,918 and $71,429, respectively, as a result of gains/losses on equity securities classified as at fair value through profit or loss.

(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 Company is exposed to credit risk from operating activities (primarily for accounts receivable) and financing activities (primarily for various financial instrument).

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.

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

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

The Company 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.

The Company applies the simplified approach using the provision matrix to estimate expected credit loss to assess the Company'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 Company wrote-off the financial assets, which cannot be reasonably expected to be recovered, after initiating recourse procedures. However, the Company will continue executing the recourse procedures to secure their rights.

The Company applied historical and timely information to assess the default possibility. The simplified approach using the provision matrix provision matrix to estimate loss allowance of accounts receivable and the movements in loss allowance for notes and accounts receivable please refer to Note 6(16).

(5) Liquidity risk management

The Company'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 Company'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 Company'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.
Notes to the Parent Company Only 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	$2,981,516	$-	$2,981,516
Short-term notes and bills payable	400,000	-	400,000
Notes payable	335	-	335
Accounts payable
(including related parties)	128,619	-	128,619
Other payables (including related parties)	1,077,773	-	1,077,773
Long-term borrowings
(including current portion)	63,877	11,400,242	11,464,119
Lease liabilities (including current portion)	3,877	58,159	62,036
Total	$4,655,997	$11,458,401	$16,114,398

December 31, 2024

	Less than 1 year	Over 1 year	Total
Non-derivative financial liabilities
Short-term borrowings	$3,635,963	$-	$3,635,963
Short-term notes and bills payable	50,000	-	50,000
Notes payable	51,407	-	51,407
Accounts payable
(including related parties)	170,397	-	170,397
Other payables (including related parties)	763,731	-	763,731
Long-term borrowings
(including current portion)	194,281	8,800,361	8,994,642
Lease liabilities (including current portion)	3,877	62,037	65,914
Total	$4,869,656	$8,862,398	$13,732,054

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

(6) Reconciliation of liabilities arising from financing activities

| | Short-term borrowings | long-term borrowings
(including current portion) | Short-term notes and bills payable | Other payables to related parties | Lease liabilities | Bonds payable
(including current portion) | Liabilities from financing activities-gross |
| --- | --- | --- | --- | --- | --- | --- | --- |
| 2025.1.1 | $3,602,000 | $8,365,499 | $50,000 | $592,756 | $54,730 | $- | $12,664,985 |
| Cash flows | (638,105) | 1,983,092 | 350,000 | 164,096 | (3,877) | - | 1,855,206 |
| Non-cash changes (Note) | - | - | - | - | 1,204 | - | 1,204 |
| 2025.12.31 | $2,963,895 | $10,348,591 | $400,000 | $756,852 | $52,057 | $- | $14,521,395 |

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

	long-term borrowings					Bonds payable
	Short-term borrowings	(including current portion)	Short-term notes and bills payable	Other payables to related parties	Lease liabilities	(including current portion)	Liabilities from financing activities-gross
2024.1.1	$4,187,493	$5,819,278	$400,000	$70,000	$56,846	$161,502	$10,695,119
Cash flows	(585,493)	2,546,221	(350,000)	522,756	(3,877)	(405)	2,129,202
Non-cash changes (Note)	-	-	-	-	1,761	(161,097)	(159,336)
2024.12.31	$3,602,000	$8,365,499	$50,000	$592,756	$54,730	$-	$12,664,985

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 Company's investment in listed stocks is included in Level 1.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the 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 Company and wealth management products are included in Level 3.

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.

Yem Chio Co., Ltd.

Notes to the Parent Company Only Financial Statements (Continued)

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

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.

As of December 31, 2025 and 2024, the balances of financial instruments not measured at fair value were 0.

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 other comprehensive income
Equity securities	$1,699,929	$-	$5,597	$1,705,526
Fund	-	412,829	-	412,829
Investment property	-	-	1,355,730	1,355,730
Total	$1,699,929	$412,829	$1,361,327	$3,474,085
December 31, 2024	Level 1	Level 2	Level 3	Total
Recurring fair value measurements for assets:
Financial assets at fair value through other comprehensive income
Equity securities	$1,422,985	$-	$5,597	$1,428,582
Investment property	-	-	1,343,740	1,343,740
Total	$1,422,985	$-	$1,349,337	$2,772,322

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

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

Market quoted price	Listed shares
	Closing price

Yem Chio Co., Ltd.

Notes to the Parent Company Only Financial Statements (Continued)

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

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 Company 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.

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

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

F. The information on change in fair value of investment property for the years ended December 31, 2025 and 2024 is provided in Note 6(9).

G. 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.

Yem Chio Co., Ltd.

Notes to the Parent Company Only Financial Statements (Continued)

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

H. 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:

Item	Fair value at December 31, 2025	Valuation technique	Significant observable input	Range	Relationship of inputs to fair value
Unlisted stocks	$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	1,355,730	Income approach	Discounted rate	(Note)	The higher the discount rate, the lower the fair value.
Item	Fair value at December 31, 2024	Valuation technique	Significant observable input	Range	Relationship of inputs to fair value
Unlisted stocks	$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	1,343,740	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(9).

The Company has carefully assessed the valuation models and assumptions used to measure fair value. However, use of different valuation models or assumptions may result in different measurement.

(8) Significant assets and liabilities denominated in foreign currencies

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

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

	December 31, 2025
	Foreign currencies (in thousand)	Foreign exchange rate	NTD (in thousand)
Financial assets
Monetary items:
USD:NTD	$4,499	31.43	$141,398
Non-monetary items:
Long-term equity investments accounted for under the equity method
USD:NTD	$3,956	31.43	$124,324
Financial liabilities
Monetary items:
USD:NTD	$1,028	31.43	$32,323
	December 31, 2024
	Foreign currencies (in thousand)	Foreign exchange rate	NTD (in thousand)
Financial assets
Monetary items:
USD:NTD	$10,202	32.79	$334,473
Non-monetary items:
Long-term equity investments accounted for under the equity method
USD:NTD	$3,691	32.79	$121,020
Financial liabilities
Monetary items:
USD:NTD	$1,382	32.79	$45,309

(9) Capital management

The primary objective of the Company'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's value. Refer to the balance sheet of each period for related liabilities and capital ratio.

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.

Yem Chio Co. Ltd.

Notes to the Parent Company Only Financial Statements (Continued)

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

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 10.

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.

(4) Major shareholders' information

Major shareholders' information: Please refer to table 11.

Segment information

Not applicable.

Yen 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 shown 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)	Footnote
													Item	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	Acham Opn-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	Acham 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	Acham 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	Acham 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	Acham 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	Acham Technology Co., Ltd.	Acham Opn-Electronic Co., Ltd.	Other receivables	Yes	20,000	20,000	-	2.00%	2	-	Working capital	-	None	-	1,145,763	2,005,085	-
2	Acham Technology Co., Ltd.	Acham Technology Holdings Co., Ltd.	Other receivables	Yes	166,025	-	-	2.00%	2	-	Working capital	-	None	-	1,145,763	2,005,085	-
2	Acham Technology Co., Ltd.	Pantech Tape Co., Ltd.	Other receivables	Yes	55,000	-	-	2.00%	2	-	Working capital	-	None	-	1,145,763	2,005,085	-
3	Acham 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	Acham 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	Acham Technology Holdings Co., Ltd.	WAIS CHIO	Other receivables	Yes	164,365	155,579	155,579	2.00%	2	-	Working capital	-	None	-	4,405,952	4,405,952	-
3	Acham 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	Acham Technology Holdings Co., Ltd.	Wancho 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.	Wancho 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 Yum Chie 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	Acham 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	Wancho 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	Yukailme 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	-	1,394,436	1,394,436	-
8	Wancho Adhesive Product (Jiangsu) Co., Ltd.	Ningbo Yum Chie Co., Ltd.	Other receivables	Yes	36,584	35,968	35,968	2.90%	2	-	Working capital	-	None	-	46,139,356	46,139,356	-
9	AGK Holding Limited	Acham Technology Holdings Co., Ltd.	Other receivables	Yes	40,859	40,859	31,430	2%-5%	2	-	Working capital	-	None	-	531,263	531,263	-
10	Yum Chie 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	Yum Chie Distribution Co., Ltd.	Viziney Union b Co., Ltd.	Other receivables	Yes	100,000	100,000	67,800	2.20%	2	-	Working capital	-	None	-	308,272	308,272	-
12	Master Package (Shanghai) Material Technology Co., Ltd.	Ningbo Yum Chie 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 CHO's loans to others and the loan amount to any single counterparty shall each be capped at 40% of net worth.

Provided that fund lending among of/show 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 net assets, respectively.

(9) The total and individual lending amount of Wanchis 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 Wanchis 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 Yem Chio 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 Loaning 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 bears, 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 Loaning 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 those lines of loaning approved by the board of directors, and those 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.

Yum 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	Endorsed/Guarantees		Limit on endorsement/guarantee Given on behalf of each party (Note 3)	Maximum balance for the period (Note 4)	Ending balance (Note 5)	Actual Borrowing Amount (Note 6)	Amount of endorsements/guarantees (substandard 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 by subsidiary to parent company (Note 7)	Provision of endorsements/guarantees to the party in Mainland China (Note 7)	Footnotes
		Company name	Relationship (Note 2)
0	The Company	ACHEM Technology (Vietnam) Ltd.	2	$12,824,734	$94,290	$94,290	$62,804	$-	1%	$19,237,101	Y	N	N	-
0	The Company	Wanchio Adhesive Product (Jiangxi) Co., Ltd.	2	12,824,734	164,628	125,888	-	-	1%	19,237,101	Y	N	Y	-
0	The Company	Achern 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 (Dongguai) 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 Wu 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 Ke 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 Sh 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 Cheng Energy Co., Ltd.	2	235,297	148,000	148,000	-	-	78%	705,891	N	N	N	-
1	King Sun New Tech Co., Ltd.	Hong Cheng 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	13,380	13,380	12,493	-	7%	705,891	N	N	N	-
2	Achern Technology Co., Ltd.	Yizhou (Dongguai) adhesive Product Co., Ltd.	2	5,728,814	30,000	30,000	16,556	-	1%	5,728,814	N	N	Y	-
2	Achern Technology Co., Ltd.	Achern Technology Holdings Co., Ltd.	2	5,728,814	590,130	408,590	-	-	7%	5,728,814	N	N	N	-
2	Achern Technology Co., Ltd.	Ningbo Yum Chie Co., Ltd.	2	5,728,814	205,785	202,320	-	-	3%	5,728,814	N	N	Y	-
2	Achern Technology Co., Ltd.	Wanchio Adhesive Product (Jiangxi) Co., Ltd.	2	5,728,814	128,044	125,888	-	-	2%	5,728,814	N	N	Y	-
2	Achern Technology Co., Ltd.	ACHEM Technology (Vietnam) Ltd.	2	5,728,814	66,410	62,860	-	-	1%	5,728,814	N	N	N	-
5	ACHEM Technology (Shanghai) Limited	Wanchio Adhesive Product (Jiangxi) Co., Ltd.	2	826,122	607,614	-	-	-	0%	826,122	N	N	Y	-
4	Yum Chie Distribution Co., Ltd.	Victory Union B Co., Ltd.	2	154,136	82,500	82,500	13,750	-	11%	308,272	N	N	N	-
4	Yum Chie Distribution Co., Ltd.	Star Ray Co., Ltd.	2	154,136	2,475	2,475	2,475	-	0%	308,272	N	N	N	-
5	Victory Union B Co., Ltd.	Su Zhou Ming Ji Trade Co., Ltd.	2	29,550	22,480	22,480	-	-	17%	59,101	N	N	Y	-

Note1: The numbers filled in for the loans provided by the Company or subsidiaries are as follows:
(1) The Company is $\mathcal{N}$
(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 endorsed/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 5: 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 $300\%$ 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 $300\%$ 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 Yum Chie Distribution Co., Ltd. to others and to a single party is based on $40\%$ and $20\%$ of Yum Chie Distribution Co., Ltd.'s net equity in the latest financial statements, respectively.
(6) Calculation for ceiling on endorsements/guarantees provided by Victory Union B Co., Ltd. to others and to a single party is based on $40\%$ and $20\%$ of Victory Union B Co., Ltd.'s net equity in the latest financial statements, respectively.

Note 6: Fill in the year-to-date maximum outstanding balance of endorsements/guarantees provided as of the reporting period.

Note 7: Fill in the amount approved by the Board of Directors or the chairman if the chairman has been authorized by the Board of Directors based on subparagraph 8, Article 12 of the Regulations Governing Loaning of Funds and Mailing 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.

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%	$124,524	$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	Yamran 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	75,150	-	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.	Chuangfu 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 (America) 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 Bu 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
Yam 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
Yam 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
Yam 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 invester 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 investors and every directly or indirectly controlled invester's investment information, and note the relationship between the Company (public company) and its invester each (ex. direct subsidiary or indirect subsidiary) in the 'footnote' column.
(2) The 'Net profit (loss) of the invester for the year ended December 31, 2025' column should fill in amount of net profit (loss) of the invester 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 invester 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 confirm 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	$900,497	$-	$-	$900,497	$(9,335)	100.00%	$(9,335)	$59,182	$-	B
Master 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
Windu Opto-Electronics Co., Ltd.	Manufacturing and sales of polarising film, photoelectric material, optical thin-film and polarising adhesives	640,876	2	156,408	-	-	156,408	(81,249)	30.43%	(24,724)	953,157	422,734	B
Wan Chio 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
Wanchio 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 Zhen Ming Xi Trade Co., Ltd.	Sales of various adhesives products	35,968	2	-	-	-	-	2,748	33.82%	1,931	72,102	-	B
Xiamen Lianga 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 Chio Distribution Co., Ltd.	$228,318	$228,318	$462,407
Victory Union It 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 Chio 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 It 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.

YEM CHIO CO., LTD.
1.STATEMENT OF CASH AND CASH EQUIVALENTS
DECEMBER 31, 2025
(Expressed in thousands of New Taiwan dollars)

Item	Description			Amount
Petty cash				$ 192
Checking deposits				16,115
Demand deposits
—NTD				475,846
—Foreign currency	thousand		Exchange rate
	USD	1,027	31.4300
	EUR	53	36.9000
	JPY	174	0.2008
	RMB	3	4.4960	34,289
				510,135
Total				$ 526,442

YEM CHIO CO., LTD.
2.STATEMENT OF ACCOUNTS RECETVABLE
DECEMBER 31, 2025
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Client Name	Description	Amount	Note
Third parties:
Client A		$ 45,580
Client B		26,778
Client C		25,167
Client D		18,282
Client E		17,790
Client F		14,159
Others		20,592	The amount of individual client in others does not exceed 5% of the account balance.
	Subtotal	168,348
Less: Loss allowance		( 15,832)
	Total	$ 152,516

YEM CHIO CO., LTD.
3.STATEMENT OF INVENTORIES
DECEMBER 31, 2025
(Expressed in thousands of New Taiwan dollars)

Item	Description	Amount
		Cost	Net Realisable Value
Packaging material sales channel business:
Raw materials	Based on net realisable value	$ 167,976	$ 162,393
Finished goods	〃	107,911	102,544
		275,887	264,937
Less: Allowance for loss on inventory		( 10,950)	-
Subtotal		264,937	264,937
Land development & construction business:
Construction-in-progress	Based on net realisable value (note)	4,702,307	4,702,307
Land held for building	Based on net realisable value	7,444,228	7,444,228
Property held for Sale	〃	554,955	554,955
Prepayments of land	〃	29,096	29,096
		12,730,586	12,730,586
Less: Allowance for loss on inventory		-	-
Subtotal		12,730,586	12,730,586
Total		$ 12,995,523	$ 12,995,523

Note: Due to the industry characteristics of the land development and construction business, the net realisable value of the construction-in-progress is difficult to determine, therefore, the net realisable value presented represents that the value of the construction-in-progress is not lower than its cost.

YEM CHIO CO., LTD.

4.STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR UNDER THE EQUITY METHOD

FOR THE YEAR ENDED DECEMBER 31, 2025

(Expressed in thousands of New Taiwan dollars)

Name	As of 1 January 2025		Additions (Note 1)		Decrease (Note 2)		Ending Balance			Market Value or Net Assets Value		Collateral
	Shares (in thousands)	Amount	Shares (in thousands)	Amount	Shares (in thousands)	Amount	Shares (in thousands)	%	Amount	Unit Price	Amount
Recorded under assets
ACHEM Technology Corporation	399,905	$ 6,006,899	-	$ 291,363	-	$ 622,878	399,905	100.00%	$ 5,675,384	$ 14.19	$ 5,675,384	None
Yem Chio Construction Co., Ltd.	34,508	281,977	-	-	-	12,896	34,508	100.00%	269,081	7.80	269,081	None
Yem Chio Co., Ltd.	47,118	121,020	-	27,344	-	24,040	47,118	100.00%	124,324	-	124,324	None
Yanrun Development Co., Ltd.	1,320	( 5,944)	-	6,858	-	-	1,320	40.00%	914	-	914	None
King Sun New Tech Co., Ltd.	7,300	243,824	-	41,974	-	33,985	7,300	66.36%	251,813	34.50	251,813	None
		$ 6,647,776		$ 367,539		$ 693,799			$ 6,321,516		$ 6,321,516
Recorded under liabilities
Yem Chio Distribution Co., Ltd.	12,870	( $ 53,933)	-	$ 58,187	-	$ 39,358	12,870	38.86%	( $ 35,104)	46.50	( $ 35,104)	None
Yem Chio Hotel Co., Ltd.	-	( 82,883)	-	-	-	10,656	-	100.00%	( 93,539)	-	( 93,539)	None
		( $ 136,816)		$ 58,187		$ 50,014			( $ 128,643)		( $ 128,643)

Note 1: The amount includes investment income, changes in equity of investees, and increase in investments, etc.
Note 2: The amount includes investment loss, changes in equity of investees, and decrease in investments, etc.
Note 3: The unit price is calculated by closing price of the Taipei Exchange or the Taiwan Stock Exchange as of December 31,2025.

YEM CHIO CO., LTD.
5.STATEMENT OF SHORT-TERM BORROWINGS
DECEMBER 31, 2025
(Expressed in thousands of New Taiwan dollars)

Creditor	Amount	Contract Period	Range of interest rates	Collateral
Taiwan Cooperative Bank	$ 360,000	Expiring within 1 year	Note	Pledged
Bank of Taiwan	550,000	〃	〃	Pledged
Taipei Fubon Bank	290,000	〃	〃	Pledged
Mega Bank	100,000	〃	〃	Pledged
First Commercial Bank	901,895	〃	〃	None
Taipei Fubon Bank	200,000	〃	〃	None
EnTie Bank	200,000	〃	〃	None
Shanghai Commercial & Savings Bank	120,000	〃	〃	None
Yuanta Commercial Bank	100,000	〃	〃	None
Shin Kong Commercial Bank	92,000	〃	〃	None
Taishin International Bank	50,000	〃	〃	None
Total	$ 2,963,895

Note: The interest rate ranged from 2.01%-2.20%.

YEM CHIO CO., LTD.
6.STATEMENT OF LONG-TERM BORROWINGS
DECEMBER 31, 2025
(Expressed in thousands of New Taiwan dollars)

Creditor	Amount	Contract Period	Range of interest rates	Collateral
First Commercial Bank	$ 1,715,000	August 2024-August 2034	Note	Pledged
First Commercial Bank	1,885,000	March 2021-March 2026	〃	None
Taiwan Shin Kong Commercial Bank	1,550,799	December 2023-November 2027	〃	Pledged
KGI Bank	1,342,000	December 2023-March 2027	〃	Pledged
Land Bank of Taiwan	1,205,000	December 2025-December 2045	〃	Pledged
Chang Hwa Bank	693,750	January 2025-January 2029	〃	Pledged
CTBC Bank	651,000	November 2021-February 2027	〃	Pledged
Chang Hwa Bank	335,000	May 2023-May 2029	〃	Pledged
President Securities Corporation	323,908	March 2025-June 2027	〃	Pledged
Taipei Fubon Bank	292,000	July 2024-November 2027	〃	Pledged
First Commercial Bank	188,000	August 2016-August 2031	〃	Pledged
Mega Bank	167,134	May 2025-May 2030	〃	Pledged
Subtotal	10,348,591
Less: Expiring within 1 year	( 35,000)
Less: 1 Operating cycle	( 5,031,683)
Total	$ 5,281,908

Note: The interest rate ranged from 1.98%-3.50%.

YEM CHIO CO., LTD.
7.STATEMENT OF ACCOUNTS PAYABLE
DECEMBER 31, 2025
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Vendor Name	Amount	Note
Third Parties:
Vendor A	$ 17,708
Vendor B	8,122
Vendor C	5,602
Others	80,027	The amount of individual client in others does not exceed 5% of the account balance.
Total	$ 111,459

YEM CHIO CO., LTD.
8.STATEMENT OF SALES OF GOODS
DECEMBER 31, 2025
(Expressed in thousands of New Taiwan dollars)

Item	Volume	Amount
Sales of goods
Adhesives	199,241(m²)	$ 552,117
BOPP Film	28,905(t)	1,363,112
Subtotal		1,915,229
Less: Sales discounts and allowances		( 7,685)
Subtotal		1,907,544
Construction revenue		1,041,863
Subtotal		$ 2,949,407

YEM CHIO CO., LTD.
9.STATEMENT OF COST OF SALES
FOR THE YEAR ENDED DECEMBER 31, 2025
(Expressed in thousands of New Taiwan dollars)

Item	Description	Amount	Note
Cost of goods sold from manufacturing
Raw materials used
Beginning raw materials		$ 150,621
Add: Raw materials purchased		1,310,120
Less: Ending raw materials		( 142,380)
Transfers to manufacturing and operating expenses		( 12,873)
Raw materials used for the year		1,305,488
Direct labor		76,608
Manufacturing expense		488,257
Manufacturing cost		1,870,353
Beginning finished goods		136,998
Less: Transfers to operating expenses		( 343)
Ending finished goods		( 133,506)
Manufacturing and selling costs		1,873,502
Less: Revenue from sale of scraps		( 1,933)
Cost of goods sold from manufacturing		1,871,569
Cost of construction		953,330
Operating costs		$ 2,824,899

YEM CHIO CO., LTD.
10.STATEMENT OF MANUFACTURING EXPENSES
FOR THE YEAR ENDED 31 DECEMBER 2025
(Expressed in thousands of New Taiwan dollars)

Item	Description	Amount	Note
Utilities		$ 183,249
Depreciation		150,457
Labour and health insurance fees		15,399
Indirect labour		45,763
Repairs and maintenance expense		27,460
Pensions		4,486
Indirect materials		13,726
Other manufacturing expenses		47,717
		$ 488,257

YEM CHIO CO., LTD.
11.STATEMENT OF OPERATING EXPENSES
FOR THE YEAR ENDED 31 DECEMBER 2025
(Expressed in thousands of New Taiwan dollars)

Item	Selling Expenses	Administrative Expenses	Research and Development Expenses	Total
Payroll expense	$ 7,839	$ 59,205	$ -	$ 67,044
Freight expense	45,306	-	-	45,306
Import/export (customs) expense	3,828	-	-	3,828
Labour and health insurance expense	1,092	6,761	-	7,853
Depreciation expense	84	13,776	-	13,860
Amortisation expense	-	22	-	22
Pensions	534	3,553	-	4,087
Others	75,877	47,033	-	122,910
Total	$ 134,560	$ 130,350	$ -	$ 264,910

YEM CHIO CO., LTD.
12.STATEMENT OF EMPLOYEE BENEFITS, DEPRECIATION AND AMORTIZATION EXPENSES BY FUNCTION
(Expressed in thousands of New Taiwan dollars)

| Function
Nature | For the years ended 31 December | | | | | |
| --- | --- | --- | --- | --- | --- | --- |
| | 2025 | | | 2024 | | |
| | Operating costs | Operating expenses | Total | Operating costs | Operating expenses | Total |
| Employee benefits expense | | | | | | |
| Salaries | $ 122,371 | $ 66,390 | $ 188,761 | $ 133,281 | $ 79,425 | $ 212,706 |
| Labor and health insurance | 15,399 | 7,853 | 23,252 | 15,691 | 7,057 | 22,748 |
| Pension | 4,486 | 4,087 | 8,573 | 5,003 | 3,788 | 8,791 |
| Remuneration to directors | - | 654 | 654 | - | 520 | 520 |
| Other employee benefits expense | 6,523 | 4,059 | 10,582 | 7,506 | 3,777 | 11,283 |
| Total | $ 148,779 | $ 83,043 | $ 231,822 | $ 161,481 | $ 94,567 | $ 256,048 |
| Depreciation | $ 150,457 | $ 13,860 | $ 164,317 | $ 187,425 | $ 13,658 | $ 201,083 |
| Amortization | $ - | $ 22 | $ 22 | $ - | $ 22 | $ 22 |

Note :
1. As of December 31, 2025 and 2024, the Company had an average of 321 and 345 employees, respectively, including 4 non-employee directors for both years.
2. Companies who have been listed on Taiwan Stock Exchange or Taipei Exchange should disclose the following information:
(1) For the years ended December 31, 2025 and 2024, the average of employees benefits expense were $730 and $749, respectively.
(2) For the years ended December 31, 2025 and 2024, the average of employees salaries were $596 and $623, respectively.
(3) The average salaries are increase by (4.33)% over the year.
(4) The Company set up an audit committee and thus there's no supervisors' remuneration for both years.
(5) Criteria applied for compensation:
General employees: The Company assesses employees' salaries based on the industry standard, the Company's operation structure, and makes adjustments depending on the market salary dynamics, changes in the overall economic and industrial climate, and the laws and regulations.
Directors and management: The Company refers to the general pay levels in the industry and considers individual's performance and the Company's operation the correlation of and future risk exposure.

AI assistant

YC Audit Report / Information 2025

52391_rns_2026-06-04_9a2db977-3412-471f-ba37-7eac41990be1.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 Parent Company Only Financial Statements

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

Notice to Readers

Yem Chio Co., Ltd.

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

C. Derecognition of financial assets

D. Financial liabilities and equity

Classification between liabilities or equity

Equity instruments

Compound instruments

Financial liabilities

Financial liabilities at amortised cost

Derecognition of financial liabilities

Company as a lessor

Yem Chio Co., Ltd.

Notes to the Parent Company Only Financial Statements (Continued)

Interest rate risk

Equity price risk

(4) Credit risk management

Yen Chio-Co., Ltd. and Subsidiaries

Yum Chiu Co., Ltd. and Subsidiaries

Endorsement/Guarantees provided to others

Yem Chio Co., Ltd. and Subsidiaries

Information on invoices (not including invoices in Mainland China)

Yem Chio Co., Ltd. and Subsidiaries

AI assistant

YC — Audit Report / Information 2025

52391_rns_2026-06-04_9a2db977-3412-471f-ba37-7eac41990be1.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 Parent Company Only Financial Statements

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

Notice to Readers

Yem Chio Co., Ltd.

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

C. Derecognition of financial assets

D. Financial liabilities and equity

Classification between liabilities or equity

Equity instruments

Compound instruments

Financial liabilities

Financial liabilities at amortised cost

Derecognition of financial liabilities

Company as a lessor

Yem Chio Co., Ltd.

Notes to the Parent Company Only Financial Statements (Continued)

Interest rate risk

Equity price risk

(4) Credit risk management

Yen Chio-Co., Ltd. and Subsidiaries

Yum Chiu Co., Ltd. and Subsidiaries

Endorsement/Guarantees provided to others

Yem Chio Co., Ltd. and Subsidiaries

Information on invoices (not including invoices in Mainland China)

Yem Chio Co., Ltd. and Subsidiaries

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YC Audit Report / Information 2025