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Y.C.C. PARTS MFG. CO. LTD. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS' REPORT

DECEMBER 31, 2025 AND 2024

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.

Representation Letter

In connection with the Consolidated Financial Statements of Affiliated Enterprises of Y.C.C. PARTS MFG. CO. LTD. (the "Consolidated FS of the Affiliates"), we represent to you that, the entities required to be included in the Consolidated FS of the Affiliates as of and for the year ended December 31, 2025 in accordance with the "Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises" are the same as those required to be included in the Consolidated Financial Statements of Y.C.C. PARTS MFG. CO. LTD. and its subsidiaries (the "Consolidated FS of the Group") in accordance with International Financial Reporting Standard 10. Additionally, the information required to be disclosed in the Consolidated FS of Affiliates is disclosed in the Consolidated FS of the Group. Consequently, Y.C.C. PARTS MFG. CO. LTD. does not prepare a separate set of Consolidated FS of Affiliates.

Very truly yours,

Y.C.C. PARTS MFG. CO. LTD. AND SUBSIDIARIES

HE HAN INVESTMENT CO.,LTD, Lin Hao Chen

March 5, 2026

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INDEPENDENT AUDITORS' REPORT TRANSLATED FROM CHINESE

To the Board of Directors and Shareholders of Y.C.C. Parts Mfg. Co., Ltd.

Opinion

We have audited the accompanying consolidated balance sheets of Y.C.C. Parts Mfg. Co., Ltd. and subsidiaries (the "Group") as at December 31, 2025 and 2024, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of material accounting policies.

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

Basis for opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the consolidated financial statements section of our report. We are independent of the Group in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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Key audit matters

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

Key audit matters for the Group’s 2025 consolidated financial statements are stated as follows:

Cut-off of sales revenue recognition

Description

For the accounting policy of revenue recognition, please refer to Note 4(28); and for details of operating revenue, please refer to Note 6(20). The Group is primarily engaged in manufacturing and trading automobile parts. Sale revenue is recognised when the control over the goods was transferred under the transaction terms.

The sales revenue recognition involves the use of several manual judgments and procedures. As a result, the timing of sales revenue recognition may be inappropriate. Therefore, we included the cut-off of sales revenue recognition as one of the key areas of focus for this year.

How our audit addressed the matter

Our audit procedures in relation to the above key audit matter included:

Understanding and evaluating the operating procedures and internal controls over sales revenue, and assessing the effectiveness on how the management controls the timing of recognizing sales revenue.
Examined the transaction documents to ensure that transactions had been recorded in the proper period for a certain period around the balance sheet date.

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Assessment of allowance for inventory valuation loss

Description

For the accounting policy of inventory assessment, please refer to Note 4(14); for accounting estimates and assumption uncertainty in relation to inventory valuation, please refer to Note 5; and for details of allowance for inventory valuation losses, please refer to Note 6(5).

As of December 31, 2025, the balances of inventories and allowance for inventory valuation losses were NT$ 379,243 thousand and NT$ 33,500 thousand, respectively.

Inventories that are over a certain age and separately recognised as impaired inventories are stated at the lower of cost and net realisable value. Those inventory items separately identified as obsolete and damaged are corroborated against supporting documents in recognising valuation losses. Considering that the Group’s inventories were material to its financial statements, and the determination of net realisable value as at balance sheet date involved judgments and estimates, we identified the assessment of allowance for inventory valuation losses a key audit matter.

How our audit addressed the matter

Our audit procedures in relation to the above key audit matter included:

Obtained an understanding of the nature of the Group’s business and industry and assessed the reasonableness of provision policies in the determination of allowance for inventory valuation losses.
Reviewed the Group’s annual counting plan and conducted their physical counts on inventories to evaluate the control effectiveness on inventory classification.
Obtained the Group’s inventory aging report and verified dates of movements with supporting documents. Ensured the proper categorisation of inventory aging report in accordance with the Group’s policy.
Obtained the net realisable value statement of each inventory, assessed whether the estimation policy was consistently applied, tested the estimation basis of the net realisable value with relevant information, including verifying the sales and purchase prices with supporting evidence, and recalculated and evaluated the reasonableness of the inventory valuation.

Other matter – Parent company only financial reports

We have audited and expressed an unqualified opinion on the parent company only financial statements of Y.C.C. Parts Mfg. Co., Ltd. as at and for the years ended

December 31, 2025 and 2024.

Responsibilities of management and those charged with governance for the consolidated financial statements

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

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

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

Auditors' responsibilities for the audit of the consolidated financial statements

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

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

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period 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.

Lai, Chih-Wei
Wang, Yu-Chuan
For and on behalf of PricewaterhouseCoopers, Taiwan
March 5, 2026

The accompanying consolidated financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying consolidated financial statements and independent auditors' report are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

As the financial statements are the responsibility of the management, PricewaterhouseCoopers Taiwan 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.

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Y.C.C. PARTS MFG. CO. LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)

Assets	Notes	December 31, 2025		December 31, 2024
		AMOUNT	%	AMOUNT	%
Current assets
1100	Cash and cash equivalents	6(1)	$ 613,253	12	$ 561,073	11
1110	Financial assets at fair value through profit or loss - current	6(2)	112,791	2	136,325	3
1136	Current financial assets at amortised cost	6(3)	-	-	29,167	1
1150	Notes receivable, net	6(4)	17,636	1	24,909	-
1170	Accounts receivable, net	6(4)	315,890	6	417,199	8
1200	Other receivables		5,387	-	3,226	-
1220	Current tax assets		8	-	-	-
130X	Inventories	6(5)	345,743	7	308,794	6
1470	Other current assets		53,863	1	38,221	1
11XX	Current Assets		1,464,571	29	1,518,914	30
Non-current assets
1517	Non-current financial assets at fair value through other comprehensive income	6(6)	132,121	3	127,432	2
1535	Non-current financial assets at amortised cost	6(3) and 8	1,450	-	300	-
1600	Property, plant and equipment	6(7) and 8	2,957,340	59	2,916,174	57
1755	Right-of-use assets	6(8)	139,287	3	145,486	3
1760	Investment property, net	6(9)	93,043	2	94,006	2
1780	Intangible assets		2,333	-	3,115	-
1840	Deferred income tax assets	6(26)	93,122	2	94,464	2
1900	Other non-current assets	6(10)	121,277	2	212,999	4
15XX	Non-current assets		3,539,973	71	3,593,976	70
1XXX	Total assets		$ 5,004,544	100	$ 5,112,890	100

(Continued)

Y.C.C. PARTS MFG. CO. LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity	Notes	December 31, 2025		December 31, 2024
		AMOUNT	%	AMOUNT	%
Current liabilities
2130	Current contract liabilities	6(20)	$ 3,314	-	$ 8,800	-
2150	Notes payable		110,816	2	116,187	3
2170	Accounts payable		65,560	1	63,949	1
2200	Other payables	6(12)	185,598	4	165,158	3
2230	Current income tax liabilities	6(26)	73,325	2	93,206	2
2280	Current lease liabilities	6(8)	5,469	-	5,272	-
2320	Long-term liabilities, current portion	6(13)	148,046	3	136,815	3
2399	Other current liabilities, others	6(14)	91,521	2	651	-
21XX	Current Liabilities		683,649	14	590,038	12
Non-current liabilities
2540	Long-term borrowings	6(13)	163,396	3	311,489	6
2560	Current tax liabilities-non-current	6(26)	29,325	1	969	-
2570	Deferred income tax liabilities	6(26)	9,379	-	1,378	-
2580	Non-current lease liabilities	6(8)	9,900	-	12,083	-
2600	Other non-current liabilities	6(15)	3,231	-	3,807	-
25XX	Non-current liabilities		215,231	4	329,726	6
2XXX	Total Liabilities		898,880	18	919,764	18
Equity attributable to owners of parent
	Share capital	6(17)
3110	Share capital - common stock		741,239	15	741,239	14
	Capital surplus	6(18)
3200	Capital surplus		1,193,369	24	1,193,369	24
	Retained earnings	6(19)
3310	Legal reserve		465,175	9	427,883	8
3320	Special reserve		80,622	2	94,043	2
3350	Unappropriated retained earnings		1,672,702	34	1,733,942	34
	Other equity interest
3400	Other equity interest		( 120,743)	( 3)	( 80,622)	( 2)
31XX	Equity attributable to owners of the parent		4,032,364	81	4,109,854	80
36XX	Non-controlling interests		73,300	1	83,272	2
3XXX	Total equity		4,105,664	82	4,193,126	82
	Significant contingent liabilities and unrecognised contract commitments	9
3X2X	Total liabilities and equity		$ 5,004,544	100	$ 5,112,890	100

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

Y.C.C. PARTS MFG. CO. LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
YEARS ENDED DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars, except earnings per share amounts)

	Items	Notes	Year ended December 31
			2025		2024
			AMOUNT	%	AMOUNT	%
4000	Sales revenue	6(20)	$ 1,661,178	100	$ 1,932,091	100
5000	Operating costs	6(5)(24)	( 1,085,818)	( 66)	( 1,241,874)	( 65)
5900	Net operating margin		575,360	34	690,217	35
	Operating expenses	6(24)
6100	Selling expenses		( 116,213)	( 7)	( 153,741)	( 8)
6200	General and administrative expenses		( 108,282)	( 6)	( 116,430)	( 6)
6300	Research and development expenses		( 79,295)	( 5)	( 70,066)	( 4)
6450	Impairment gain determined in accordance with IFRS 9	12(2)
			230	-	12,645	1
6000	Total operating expenses		( 303,560)	( 18)	( 327,592)	( 17)
6900	Operating profit		271,800	16	362,625	18
	Non-operating income and expenses
7100	Interest income		20,031	1	23,287	1
7010	Other income	6(21)	45,824	3	55,898	3
7020	Other gains and losses	6(22)	( 88,677)	( 5)	46,422	3
7050	Finance costs	6(23)	( 8,011)	( 1)	( 12,011)	( 1)
7000	Total non-operating revenue and expenses		( 30,833)	( 2)	113,596	6
7900	Profit before income tax		240,967	14	476,221	24
7950	Income tax expense	6(26)	( 70,620)	( 4)	( 121,186)	( 6)
8200	Profit for the year		$ 170,347	10	$ 355,035	18
	Other comprehensive income
	Components of other comprehensive income that will not be reclassified to profit or loss
8311	Other comprehensive income, before tax, actuarial gains (losses) on defined benefit plans	6(16)
			$ 7,596	-	$ 1,622	-
8316	Unrealized gains (losses) on investments in equity instruments measured at fair value through other comprehensive income	6(6)
			( 39,855)	( 2)	( 867)	-
8349	Income tax related to components of other comprehensive income that will not be reclassified to profit or loss	6(26)
			( 1,516)	-	( 324)	-
8310	Components of other comprehensive income that will not be reclassified to profit or loss		( 33,775)	( 2)	431	-
	Components of other comprehensive income that will be reclassified to profit or loss
8361	Financial statements translation differences of foreign operations		( 1,662)	-	18,051	1
8360	Components of other comprehensive income that will be reclassified to profit or loss		( 1,662)	-	18,051	1
8300	Total other comprehensive (loss) income for the year		( $ 35,437)	( 2)	$ 18,482	1
8500	Total comprehensive income for the year		$ 134,910	8	$ 373,517	19
	Profit (loss), attributable to:
8610	Owners of parent		$ 178,923	11	$ 371,612	19
8620	Non-controlling interests		( 8,576)	( 1)	( 16,577)	( 1)
	Total		$ 170,347	10	$ 355,035	18
	Comprehensive income (loss) attributable to:
8710	Owners of parent		$ 144,882	9	$ 386,331	20
8720	Non-controlling interests		( 9,972)	( 1)	( 12,814)	( 1)
	Total		$ 134,910	8	$ 373,517	19
	Basic earnings per share	6(27)
9750	Basic earnings per share		$	2.41	$	5.01
9850	Diluted earnings per share		$	2.41	$	5.00

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

Y.C.C. PARTS MFG. CO. LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
YEARS ENDED DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)

	Equity attributable to owners of the parent
		Retained earnings				Other equity interest			Non-controlling interests
		Total	Share capital - common stock	Capital surplus, additional paid-in capital	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	Total	Total equity
Year 2024
Balance at January 1, 2024		$ 741,239	$1,193,349	$ 383,999	$ 109,142	$1,612,189	($ 93,807)	($ 236)	$3,945,875	$ 96,086	$4,041,961
Profit (loss) for the year		-	-	-	-	371,612	-	-	371,612	( 16,577)	355,035
Other comprehensive income (loss)	6(6)	-	-	-	-	1,298	14,288	( 867)	14,719	3,763	18,482
Total comprehensive income (loss)		-	-	-	-	372,910	14,288	( 867)	386,331	( 12,814)	373,517
Appropriation and distribution of 2023 earnings
Legal reserve		-	-	43,884	-	( 43,884)	-	-	-	-	-
Special reserve		-	-	-	( 15,099)	15,099	-	-	-	-	-
Cash dividends	6(19)	-	-	-	-	( 222,372)	-	-	( 222,372)	-	( 222,372)
Donated assets		-	20	-	-	-	-	-	20	-	20
Balance at December 31, 2024		$ 741,239	$1,193,369	$ 427,883	$ 94,043	$1,733,942	($ 79,519)	($ 1,103)	$4,109,854	$ 83,272	$4,193,126
Year 2025
Balance at January 1, 2025		$ 741,239	$1,193,369	$ 427,883	$ 94,043	$1,733,942	($ 79,519)	($ 1,103)	$4,109,854	$ 83,272	$4,193,126
Profit (loss) for the year		-	-	-	-	178,923	-	-	178,923	( 8,576)	170,347
Other comprehensive income (loss)	6(6)	-	-	-	-	6,080	( 266)	( 39,855)	( 34,041)	( 1,396)	( 35,437)
Total comprehensive income (loss)		-	-	-	-	185,003	( 266)	( 39,855)	144,882	( 9,972)	134,910
Appropriation and distribution of 2025 earnings
Legal reserve		-	-	37,292	-	( 37,292)	-	-	-	-	-
Special reserve		-	-	-	( 13,421)	13,421	-	-	-	-	-
Cash dividends	6(19)	-	-	-	-	( 222,372)	-	-	( 222,372)	-	( 222,372)
Balance at December 31, 2025		$ 741,239	$1,193,369	$ 465,175	$ 80,622	$1,672,702	($ 79,785)	($ 40,958)	$4,032,364	$ 73,300	$4,105,664

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

Y.C.C. PARTS MFG. CO. LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)

	Year ended December 31
	Notes	2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax		$ 240,967	$ 476,221
Adjustments
Adjustments to reconcile profit (loss)
Proceeds from disposal of property, plant and equipment	6(22)
Net loss(gain) on financial assets or liabilities at fair value through profit or loss	6(2)(22)	8,651	( 1,977 )
Expected credit (gains)losses	12(2)	27,072	( 19,650 )
Impairment loss	6(7)(11)(22)	230	( 12,645 )
Depreciation expense	6(7)(24)	28,521	69,701
Depreciation expense - right-of-use assets	6(8)(24)	371,638	373,862
Depreciation expense - investment property	6(9)(24)	9,535	9,577
Amortisation expense	6(24)	930	956
Interest expense	6(23)	9,307	9,948
Interest income		( 20,031 )	( 23,287 )
Government grant income	6(15)	( 1,176 )	( 1,431 )
Dividend income	6(21)	( 15,788 )	( 8,088 )
Changes in operating assets and liabilities
Changes in operating assets
Notes receivable, net		7,273	5,841
Accounts receivable, net		99,721	94,635
Other receivables		( 11,784 )	( 12,977 )
Inventories		( 41,148 )	41,277
Other current assets		( 15,642 )	( 5,027 )
Changes in operating liabilities
Contract liabilities - current		( 5,486 )	( 13,467 )
Notes payable		( 11,659 )	21,722
Accounts payable		1,611	( 37,165 )
Other payables		( 25,911 )	( 3,399 )
Other current liabilities		90,870	1,777
Net defined benefit asset		-	( 565 )
Cash inflow generated from operations		755,712	977,850
Interest received		20,223	24,015
Interest paid		( 8,044 )	( 12,212 )
Dividend received		15,788	8,088
Income taxes paid		( 43,370 )	( 236,996 )
Net cash flows from operating activities		740,309	760,745

(Continued)

Y.C.C. PARTS MFG. CO. LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)

	Year ended December 31
	Notes	2025	2024
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of financial assets at fair value through profit or loss		($ 9,657)	($ 3,609)
Proceeds from disposal of financial assets at fair value through profit or loss		6,119	19,581
Decrease in financial assets at amortised cost		28,017	96,723
Acquisition of non-current financial assets at fair value through other comprehensive income		( 44,544 )	-
Acquisition of property, plant and equipment	6(28)	( 242,906 )	( 433,278 )
Proceeds from disposal of property, plant and equipment		22,016	19,533
Increase in other non-current assets		( 7,018 )	( 4,795 )
Increase in prepaid equipment and construction costs	6(28)
Acquisition of intangible assets		( 102,606 )	( 35,514 )
(Increase) decrease in refundable deposits		( 280 )	( 1,752 )
Net cash flows used in investing activities		1,082	( 697 )
CASH FLOWS FROM FINANCING ACTIVITIES
Decrease in short-term borrowings	6(29)	-	( 37,280 )
Repayments of principal portion of lease liabilities	6(8)(29)	( 5,267 )	( 5,308 )
Repayments of long-term borrowings	6(29)	( 136,886 )	( 133,167 )
Increase in deposits received	6(29)	14	704
Cash dividends paid	6(29)	( 222,372 )	( 222,372 )
Net cash flows used in financing activities		( 364,511 )	( 397,423 )
Effect of exchange rate changes on cash and cash equivalents		26,159	( 9,111 )
Net increase in cash and cash equivalents		52,180	10,403
Cash and cash equivalents at beginning of year		561,073	550,670
Cash and cash equivalents at end of year		$ 613,253	$ 561,073

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

Y.C.C. PARTS MFG. CO. LTD. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

History and Organization

Y.C.C. PARTS MFG. CO., LTD. (the “Company”) was incorporated in March 1986 and has been listed on the Taiwan Stock Exchange since April 2012. The Company and its subsidiaries (collectively referred herein as the “Group”) are primarily engaged in manufacturing and trading automobile parts, import and export and wholesale and retail of health supplements as well as operating and reinvesting related businesses.

The Date of Authorisation for Issuance of the Financial Statements and Procedures for Authorisation

These consolidated financial statements were authorised for issuance by the Board of Directors on March 5, 2026.

Application of New Standards, Amendments and Interpretations

(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRS®”) Accounting Standards that came into effect as endorsed by the Financial Supervisory Commission (“FSC”)

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

New Standards, Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IAS 21, ‘Lack of exchangeability’	January 1, 2025

The above standards and interpretations have no significant impact to the Group's financial condition and financial performance based on the Group's assessment.

(Remainder of page intentionally left blank)

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(2) Effect of new issuances of or amendments to IFRS Accounting Standards as endorsed by the FSC but not yet adopted by the Group

New standards, interpretations and amendments endorsed by the FSC effective from 2026 are as follows:

New Standards, Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IFRS 9 and IFRS 7, ‘Amendments to the classification and measurement of financial instruments’	January 1, 2026
Amendments to IFRS 9 and IFRS 7, ‘Contracts referencing nature-dependent electricity’	January 1, 2026
IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendments to IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendment to IFRS 17, ‘Initial application of IFRS 17 and IFRS 9 – comparative information’	January 1, 2023
Annual Improvements to IFRS Accounting Standards—Volume 11	January 1, 2026

The above standards and interpretations have no significant impact to the Group's financial condition and financial performance based on the Group's assessment.

(3) IFRS Accounting Standards issued by IASB but not yet endorsed by the FSC

New standards, interpretations and amendments issued by IASB but not yet included in the IFRS Accounting Standards as endorsed by the FSC are as follows:

New Standards, Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between an investor and its associate or joint venture’	To be determined by International Accounting Standards Board
IFRS 18, ‘Presentation and disclosure in financial statements’	January 1, 2027(Note)
IFRS 19, ‘Subsidiaries without public accountability: disclosures’	January 1, 2027
Amendments to IAS 21, ‘Translation to a Hyperinflationary Presentation Currency’	January 1, 2027

Note : The FSC has announced in a press release on September 25, 2025 that public companies will apply IFRS 18 starting from the fiscal year 2028. Additionally, entities can choose to adopt IFRS 18 earlier based on their requirements after the FSC endorses IFRS 18.

Except for the following, the above standards and interpretations have no significant impact to the Group's financial condition and financial performance based on the Group's assessment.

IFRS 18, ‘Presentation and disclosure in financial statements’ replaces IAS 1. The standard introduces a defined structure of the statement of profit or loss, disclosure requirements related to management-defined performance measures, and enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes.

Summary of Material Accounting Policies

The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

The consolidated financial statements of the Group have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect as endorsed by the FSC (collectively referred herein as the "IFRSs").

(2) Basis of preparation

A. Except for the following items, the consolidated financial statements have been prepared under the historical cost convention:

(a) Financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss.

(b) Financial assets at fair value through other comprehensive income.

(c) Defined benefit liabilities recognised based on the net amount of pension fund assets less present value of defined benefit obligation.

B. The preparation of financial statements in conformity with IFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.

(3) Basis of consolidation

A. Basis for preparation of consolidated financial statements:

(a) All subsidiaries are included in the Group’s consolidated financial statements. Subsidiaries are all entities controlled by the Group. The Group controls an entity when the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases when the Group loses control of the subsidiaries.

(b) Inter-company transactions, balances and unrealised gains or losses on transactions between companies within the Group are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Group.

(c) Profit or loss and each component of other comprehensive income are attributed to the owners of the parent and to the non-controlling interests. Total comprehensive income is attributed to the owners of the parent and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

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(d) Changes in a parent's ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transactions with non-controlling interests) are accounted for as equity transactions, i.e. transactions with owners in their capacity as owners. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity.

(e) When the Group loses control of a subsidiary, the Group remeasures any investment retained in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial recognition of a financial asset or the cost on initial recognition of the associate or joint venture. Any difference between fair value and carrying amount is recognised in profit or loss. All amounts previously recognised in other comprehensive income in relation to the subsidiary are reclassified to profit or loss on the same basis as would be required if the related assets or liabilities were disposed of. That is, when the Group loses control of a subsidiary, all gains or losses previously recognised in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit or loss when the related assets or liabilities are disposed of.

B. Subsidiaries included in the consolidated financial statements:

Name of Investor	Name of Subsidiary	Main Business Activities	Ownership(%)		Description
			December 31, 2025	December 31, 2024
The Company	RISE BRIGHT HOLDINGS LTD. (RISE BRIGHT)	Holding company and selling interior and exterior accessories of automobiles	100.00%	100.00%
The Company	UNITED SKILLS CO., LTD. (UNITED SKILLS)	Wholesale and retail of health supplements, online shopping and mail order	100.00%	100.00%	Note 1
UNITED SKILLS CO., LTD. (UNITED SKILLS)	Hordersen Biotech Co., Ltd.	Wholesale and retail of health supplements, online shopping and mail order	100.00%	-	Note 2
RISE BRIGHT	CHINA FIRST HOLDINGS LTD. (CHINA FIRST)	Holding company and selling interior and exterior accessories of automobiles	89.44%	89.44%
RISE BRIGHT	CHANG JIE TECHNOLOGY CO., LTD. (CHANG JIE)	Producing and selling interior and exterior accessories of automobiles	99.83%	99.83%

Name of Investor	Name of Subsidiary	Main Business Activities	Ownership(%)
			December 31, 2025	December 31, 2024
CHINA FIRST	CHANGSHU FUTE AUTOMOTIVE TRIM CO., LTD. (CHANGSHU FUTE)	Producing and selling interior and exterior accessories of automobiles	100.00%	100.00%
CHINA FIRST	LIAONING HETAI AUTOMOTIVE PARTS CO.,LTD. (LIAONING HETAI)	Producing and selling interior and exterior accessories of automobiles	82.61%	82.61%

Note 1: The Company passed a resolution by the Board of Directors to invest NT$100,000 thousand in its subsidiary UNITED SKILLS in installments on March 7, 2024. As of December 31, 2025, the Company increased its capital to NT$ 98,000 thousand and the change in registration was completed.

Note 2: The Company passed a resolution by the Board of Directors to approve the establishment of a subsidiary, Hordersen Biotech Co., Ltd. As of December 31, 2025, the Company increased its capital to NT$ 1,000 thousand and the change in registration was completed.

C. Subsidiaries not included in the consolidated financial statements None.

D. Adjustments for subsidiaries with different balance sheet dates None.

E. Significant restrictions None.

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

(4) Foreign currency translation

Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates (the "functional currency"). The consolidated financial statements are presented in New Taiwan dollars, which is the Company's functional and the Group's presentation currency.

A. Foreign currency transactions and balances

(a) Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognised in profit or loss in the period in which they arise.

(b) Monetary assets and liabilities denominated in foreign currencies at the period end are re-translated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognised in profit or loss.

(c) Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in other comprehensive income. However, non-monetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.

(d) All foreign exchange gains and losses are presented in the statement of comprehensive income within ‘other gains and losses’.

B. Translation of foreign operations

(a) The operating results and financial position of all the group entities, associates and joint arrangements that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

i. Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;

ii. Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and

iii. All resulting exchange differences are recognised in other comprehensive income.

(b) When the foreign operation partially disposed of or sold is a subsidiary, cumulative exchange differences that were recorded in other comprehensive income are proportionately transferred to the non-controlling interest in this foreign operation. In addition, even when the Group still retains partial interest in the former foreign subsidiary after losing control of the former foreign subsidiary, such transactions should be accounted for as disposal of all interest in the foreign operations.

(c) Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing exchange rates at the balance sheet date.

(5) Classification of current and non-current items

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

(a) Assets that are expected to be realised, or are intended to be sold or consumed in the normal operating cycle;

(b) Assets that are held primarily for the purpose of trading;

(d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities for at least twelve months after the reporting period.

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B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise, they are classified as non-current liabilities:

(a) Liabilities that are expected to be settled in the normal operating cycle;
(b) Liabilities that are held primarily for the purpose of trading;
(c) Liabilities that are due to be settled within twelve months after the reporting period;
(d) It does not have the right at the end of the reporting period to defer settlement of the liability at least twelve months after the reporting period.

(6) Cash equivalents

Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Time deposits that meet the definition above and are held for the purpose of meeting short-term cash commitments in operations are classified as cash equivalents.

(7) Financial assets at fair value through profit or loss

A. Financial assets at fair value through profit or loss are financial assets that are not measured at amortised cost or fair value through other comprehensive income.
B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognised and derecognised using trade date accounting.
C. At initial recognition, the Group measures the financial assets at fair value and recognises the transaction costs in profit or loss. The Group subsequently measures the financial assets at fair value, and recognises the gain or loss in profit or loss.
D. The Group recognises the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.

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

A. Financial assets at fair value through other comprehensive income comprise equity securities which are not held for trading, and for which the Group has made an irrevocable election at initial recognition to recognise changes in fair value in other comprehensive income and debt instruments which meet all of the following criteria:

(a) The objective of the Group's business model is achieved both by collecting contractual cash flows and selling financial assets; and
(b) The assets' contractual cash flows represent solely payments of principal and interest.

B. On a regular way purchase or sale basis, financial assets at fair value through other comprehensive income are recognised and derecognised using trade date accounting.
C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs. The Group subsequently measures the financial assets at fair value:

The changes in fair value of equity investments that were recognised in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment. Dividends are recognised as revenue when the right to receive

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payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.

(9) Financial assets at amortised cost

A. Financial assets at amortised cost are those that meet all of the following criteria:

(a) The objective of the Group’s business model is achieved by collecting contractual cash flows.
(b) The assets’ contractual cash flows represent solely payments of principal and interest.

B. On a regular way purchase or sale basis, financial assets at amortised cost are recognised and derecognised using trade date accounting.
C. The Group’s time deposits which do not fall under cash equivalents are those with a short maturity period and are measured at initial investment amount as the effect of discounting is immaterial.

(10) Accounts and notes receivable

A. Accounts and notes receivable entitle the Group a legal right to receive consideration in exchange for transferred goods or rendered services.
B. The short-term accounts and notes receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(11) Impairment of financial assets

For financial assets at amortised cost, at each reporting date, the Group recognises the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognises the impairment provision for the lifetime expected credit losses (ECLs) if such credit risk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand, for accounts receivable that do not contain a significant financing component, the Group recognises the impairment provision for lifetime ECLs.

(12) Derecognition of financial assets

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

(13) Leasing arrangements (lessor)—operating leases

Lease income from an operating lease (net of any incentives given to the lessee) is recognised in profit or loss on a straight-line basis over the lease term.

(14) 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. It excludes borrowing costs. Except for the same types of inventory, 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.

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(15) Property, plant and equipment

A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalised.

B. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

C. Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. 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 must be depreciated separately.

D. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year-end. If expectations for the assets’ residual values and useful lives differ from previous estimates or the patterns of consumption of the assets’ future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’, from the date of the change. The estimated useful lives of property, plant and equipment are as follows:

Buildings and structures	10 ~ 20 years
Machinery and equipment	2 ~ 15 years
Molding equipment	2 ~ 5 years
Transportation equipment	5 ~ 8 years
Furniture equipment	5 years
Other equipment	2 ~ 10 years

(16) Leasing arrangements (lessee)—right-of-use assets/ lease liabilities

A. Leases are recognised as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Group. For short-term leases or leases of low-value assets, lease payments are recognised as an expense on a straight-line basis over the lease term.

B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payments are comprised of fixed payments, less any lease incentives receivable.

The Group subsequently measures the lease liability at amortised cost using the interest method and recognises interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognised as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

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C. At the commencement date, the right-of-use asset is stated at cost comprising the following:

(a) The amount of the initial measurement of lease liability;
(b) Any lease payments made at or before the commencement date;
(c) Any initial direct costs incurred by the lessee.

The right-of-use asset is measured subsequently using the cost model and is depreciated from the commencement date to the earlier of the end of the asset’s useful life or the end of the lease term. When the lease liability is remeasured, the amount of remeasurement is recognised as an adjustment to the right-of-use asset.

D. For lease modifications that decrease the scope of the lease, the lessee shall decrease the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease, and recognise the difference between remeasured lease liability in profit or loss. For all other lease modifications, the lessee shall remeasure the lease liability and adjust the right-of-use asset, correspondingly.

(17) Investment property

An investment property is stated initially at its cost and measured subsequently using the cost model. Land use right is depreciated on a straight-line basis over its contract of 50 years signed with the government of Changshu City, Jiangsu Province, People's Republic of China; buildings and structures are depreciated on a straight-line basis over its estimated useful life of 20 years.

(18) Intangible assets

Computer software is stated at cost and amortised on a straight-line basis over its estimated useful life of 3 to 5 years.

(19) Impairment of non-financial assets

The Group assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell or value in use. Except for goodwill, when the circumstances or reasons for recognizing impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortised historical cost would have been if the impairment had not been recognised.

(20) Borrowings

Borrowings comprise long-term and short-term bank borrowings. Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in profit or loss over the period of the borrowings using the effective interest method.

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(21) Notes and accounts payable

A. Accounts payable are liabilities for purchases of raw materials, goods or services and notes payable are those resulting from operating and non-operating activities.

B. The short-term notes and accounts payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(22) Derecognition of financial liabilities

A financial liability is derecognised when the obligation specified in the contract is either discharged or cancelled or expires.

(23) Offsetting financial instruments

Financial assets and liabilities are offset and reported in the net amount in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously.

(24) Employee benefits

A. Short-term employee benefits

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

B. Pensions

(a) Defined contribution plans

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

(b) Defined benefit plans

i. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Group in current period or prior periods. The liability recognised in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of government bonds (at the balance sheet date) of a currency and term consistent with the currency and term of the employment benefit obligations.

ii. Remeasurements arising on defined benefit plans are recognised in other comprehensive income in the period in which they arise and are recorded as retained earnings.

iii. Past service costs are recognised immediately in profit or loss.

C. Employees' compensation and directors' and supervisors' remuneration

Employees' compensation and directors' and supervisors' remuneration are recognised as expense and liability, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the

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subsequently actual distributed amounts is accounted for as changes in estimates. If employee compensation is paid by shares, the Group calculates the number of shares based on the closing price at the previous day of the board meeting resolution.

(25) Income tax

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

B. The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.

C. Deferred tax is recognised, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. However, the deferred tax is not accounted for if it arises from initial recognition of goodwill or of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred tax is provided on temporary differences arising on investments in subsidiaries, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.

D. Deferred tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. At each balance sheet date, unrecognised and recognised deferred tax assets are reassessed.

(26) Share capital

A. Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or stock options are shown in equity as a deduction, net of tax, from the proceeds.

B. Where the Company repurchases the Company's equity share capital that has been issued, the consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the Company's equity holders. Where such shares are subsequently reissued, the difference between their book value and any consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in equity attributable to the Company's equity holders.

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(27) Dividends

Cash dividends to shareholders are recognized as liabilities in the financial report when the Board of Directors of the Company decides to distribute, and stock dividends are recognized as stock dividends to be distributed in the financial report when the Company’s shareholders’ meeting decides to distribute, and transferred to the Company on the base date of new share issuance.

(28) Revenue recognition

Sales of goods

A. The Group manufactures and sells automobiles parts products. Sales are recognised when control of the products has transferred. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, or the Group has objective evidence that all criteria for acceptance have been satisfied.

B. Sales revenue was recognized based on the contract price net of sales discount. Goods are often sold with sales discounts and allowances based on future estimated sales volume. Accumulated experience is used to estimate and provide for the sales discounts and allowances, using the expected value method, and revenue is only recognised to the extent that it is highly probable that a significant reversal will not occur. The estimation is subject to an assessment at each reporting date. The sales usually are made with a credit term of 30 to 120 days after the delivery date, which is consistent with market practice. As the time interval between the transfer of committed goods or service and the payment of customer does not exceed one year, the Group does not adjust the transaction price to reflect the time value of money.

C. 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.

(29) Government grants

Government grants are recognised at their fair value only when there is reasonable assurance that the Company will comply with conditions attached to the grants and the grants will be received. Government grants are recognised in profit or loss on a systematic basis over the periods in which the Group recognises expenses for the related costs for which the grants are intended to compensate. Government grants related to property, plant and equipment are recognised as non-current liabilities and are amortised to profit or loss over the estimated useful lives of the related assets using the straight-line method.

(30) Business combinations

A. The Group uses the acquisition method to account for business combinations. The consideration transferred for an acquisition is measured as the fair value of the assets transferred, liabilities incurred or assumed and equity instruments issued at the acquisition date, plus the fair value of any assets and liabilities resulting from a contingent consideration arrangement. All acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent

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liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. For each business combination, the Group measures at the acquisition date components of non-controlling interests in the acquiree that are present ownership interests and entitle their holders to the proportionate share of the entity's net assets in the event of liquidation at the present ownership instruments' proportionate share in the recognised amounts of the acquiree's identifiable net assets. All other non-controlling interests should be measured at the acquisition-date fair value.

B. The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the fair value of any previous equity interest in the acquiree over the fair value of the identifiable assets acquired and the liabilities assumed is recorded as goodwill at the acquisition date. If the total of consideration transferred, non-controlling interest in the acquiree recognised and the fair value of previously held equity interest in the acquiree is less than the fair value of the identifiable assets acquired and the liabilities assumed, the difference is recognised directly in profit or loss on the acquisition date.

(31) Operating segments

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The Group's chief operating decision-maker is responsible for allocating resources and assessing performance of the operating segments.

Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty

The preparation of these consolidated financial statements requires management to make critical judgements in applying the Group's accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. Such assumptions and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year; and the related information is addressed below:

(1) Critical judgements in applying the Group's accounting policies

None.

(2) Critical accounting estimates and assumptions

Evaluation of inventories

As inventories are stated at the lower of cost and net realisable value, the Group must determine the net realisable value of inventories on balance sheet date using judgements and estimates. As net realisable value of inventories is estimated at the estimated selling price in the ordinary course of business, less the estimated cost of completion and estimated selling expenses, the estimates are based on current market conditions and historical sales experience of similar products and the result of the estimates might be significantly influenced by changes in market conditions.

As of December 31, 2025, the carrying amount of inventories was $345,743.

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6. Details of Significant Accounts

(1) Cash and cash equivalents

	December 31, 2025	December 31, 2024
Cash on hand	$ 246	$ 243
Checking accounts and demand deposits	252,094	232,202
Time deposits	360,913	328,628
	$ 613,253	$ 561,073
Interest rate range
Time deposits	0.34%~4.26%	0.55%~5.00%

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

B. The time deposits maturing over three months and time deposits that are restricted and are not held for the purpose of meeting short-term cash commitments were presented as ‘financial assets at amortised cost’. Refer to Note 6(3) for details.

C. Information about the financial assets at amortised cost that were pledged to others as collaterals is provided in Notes 6(3) and 8.

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

Items	December 31, 2025	December 31, 2024
Financial assets mandatorily measured at fair value through profit or loss
Listed stocks	$ 101,898	$ 102,273
Valuation adjustment	2,093	33,660
Total	$ 103,991	$ 135,933
Financial (liabilities) assets held for trading
Foreign exchange swap contracts	$ 8,800	$ 392
Total financial assets at fair value through profit or loss	$ 112,791	$ 136,325
	Years ended December 31,
	2025	2024
Dividend income recognised in profit or loss held at end of period
Those still held at the end of the current period	$ 6,454	$ 3,636
Those derecognized during the current period held at end of period	95	464
	$ 6,549	$ 4,100

A. The Group recognised financial assets and liabilities at fair value through profit or loss of $27,072 and $19,650 for the years ended December 31, 2025 and 2024, respectively.

B. Explanations of the transactions and contract information in respect of derivative financial assets and liabilities that the Group does not adopt hedge accounting are as follows:

	December 31, 2025
Derivative financial assets (liabilities)	Contract amount
(Notional principal)	Contract period
Foreign exchange swap contracts	USD 10,743 thousand	2025.10.03 ~ 2026.03.23
	December 31, 2024
Derivative financial assets (liabilities)	Contract amount
(Notional principal)	Contract period
Foreign exchange swap contracts	USD 900 thousand	2024.12.06 ~ 2025.01.06

The Group entered into forward exchange contracts to manage exposures due to fluctuations of foreign exchange rates. Therefore, the Group did not apply hedge accounting treatment for these forward exchange contracts.

C. The Group has no financial assets and liabilities at fair value through profit or loss pledged to others as collateral.

D. Information relating to credit risk of financial assets and liabilities at fair value through profit or loss is provided in Note 12(2).

(3) Financial assets at amortised cost

Items	December 31, 2025	December 31, 2024
Current items:
Time deposits maturing over three months	$ -	$ 29,167
Non-current items:
Restricted time deposits	$ 1,450	$ 300

A. As at December 31, 2025 and 2024, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at amortised cost held by the Group were $1,450 and $29,467, respectively.

B. Information about the financial assets at amortised cost that were pledged to others as collateral is provided in Note 8.

C. Information relating to credit risk of financial assets at amortised cost is provided in Note 12(2). The counterparties of the Group's investments in certificates of deposit are financial institutions with high credit quality, so the Group expects that the probability of counterparty default is remote.

(4) Notes and accounts receivable, net

	December 31, 2025	December 31, 2024
Notes receivable	$ 17,844	$ 25,117
Less: Allowance for uncollectible accounts	( 208)	( 208)
	$ 17,636	$ 24,909
	December 31, 2025	December 31, 2024
Accounts receivable	$ 325,617	$ 427,188
Less: Allowance for uncollectible accounts	( 9,727)	( 9,989)
	$ 315,890	$ 417,199

A. The aging analysis of notes receivable and accounts receivable are as follows:

	December 31, 2025
	Notes receivable	Accounts receivable
Not past due	$ 17,844	$ 256,364
1 to 60 days	-	63,695
61 to 120 days	-	1,803
121 to 180 days	-	1,822
181 to 240 days	-	-
Over 241 days	-	1,933
	$ 17,844	$ 325,617
	December 31, 2024
	Notes receivable	Accounts receivable
Not past due	$ 25,117	$ 349,057
1 to 60 days	-	69,032
61 to 120 days	-	4,566
121 to 180 days	-	253
181 to 240 days	-	538
Over 241 days	-	3,742
	$ 25,117	$ 427,188

As at December 31, 2025 and 2024, the ageing analysis was based on past due date.

B. As at December 31, 2025 and 2024, the balances of accounts receivable and notes receivable were all from contracts with customers. As of January 1, 2025, the balances of accounts receivable and notes receivable from contracts with customers amounted to $521,330 and $38,179, respectively.

C. As at December 31, 2025 and 2024, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Group's notes receivable were $17,636 and $24,909 and accounts receivable were $315,890 and $417,199, respectively.

D. Information relating to credit risk of notes receivable and accounts receivable is provided in Note 12(2).

(5) Inventories

	December 31, 2025
	Cost	Allowance for valuation loss	Book value
Materials and supplies	$ 86,235	($ 12,226)	$ 74,009
Work in progress	47,149	( 1,292)	45,857
Semi-finished goods	27,309	( 1,881)	25,428
Finished goods	218,091	( 18,101)	199,990
Merchandise	459	-	459
Total	$ 379,243	($ 33,500)	$ 345,743
	December 31, 2024
	Cost	Allowance for valuation loss	Book value
Materials and supplies	$ 109,018	($ 22,147)	$ 86,871
Work in progress	50,643	( 3,155)	47,488
Semi-finished goods	9,987	( 4,205)	5,782
Finished goods	184,291	( 17,207)	167,084
Merchandise	1,569	-	1,569
Total	$ 355,508	($ 46,714)	$ 308,794

The cost of inventories recognised as expense for the period :

	Years ended December 31,
	2025	2024
Cost of goods sold	$ 1,068,276	$ 1,212,319
Unallocated fixed overheads	31,132	38,226
Loss on scrapping inventory	45	253
Gain on reversal of market value decline and obsolete and slow-moving inventories	( 12,917)	( 8,791)
Gain on physical inventory	( 718)	( 133)
	$ 1,085,818	$ 1,241,874

The Group reversed a previous inventory write-down because inventories with decline in market value were partially sold and scrapped by the Group for the years ended December 31, 2025 and 2024.

(6) Non-current financial assets at fair value through other comprehensive income

Items	December 31, 2025	December 31, 2024
Non-current items:
Equity instruments
Listed stocks	$ 173,079	$ 128,535
Valuation adjustment	( 40,958)	( 1,103)
Total	$ 132,121	$ 127,432

A. The Group has elected to classify investments that are considered to be strategic investments or steady dividend income as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $132,121 and $127,432 as at December 31, 2025 and 2024 respectively.

B. Amounts recognised in profit or loss and other comprehensive income in relation to the financial assets at fair value through other comprehensive income are listed below:

	Years ended December 31,
	2025	2024
Equity instruments at fair value through other comprehensive income
Fair value change recognised in other comprehensive income	($ 39,855)	($ 867)
Dividend income recognised in profit or loss held at end of period	$ 9,239	$ 3,988

C. As at December 31, 2025 and 2024, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at fair value through other comprehensive income held by the Group were $132,121 and $127,432, respectively.

D. The Group has no financial assets at fair value through other comprehensive income pledged to others as collateral.

(Remainder of page intentionally left blank)

(7) Property, plant and equipment

Year ended December 31, 2025

	Beginning balance	Additions	Decreases	Transfers	Net exchange differences	Ending balance
Cost
Land	$ 1,034,065	$ -	$ -	$ -	$ -	$ 1,034,065
Buildings and structures	1,719,044	23,183	-	160,884	( 20,323)	1,882,788
Machinery and equipment	1,344,957	46,337	( 264,554)	187,451	( 34,337)	1,279,854
Molding equipment	2,422,640	82,552	( 6,550)	59,087	130	2,557,859
Transportation equipment	33,192	1,405	( 2,667)	-	( 5)	31,925
Furniture equipment	2,951	111	( 36)	-	2	3,028
Other equipment	237,898	10,238	( 11,394)	7,286	( 926)	243,102
Unfinished construction and equipment under acceptance	342,455	135,951	-	( 214,446)	-	263,960
	$ 7,137,202	$ 299,777	($ 285,201)	$ 200,262	($ 55,459)	$ 7,296,581
Accumulated Depreciation
Buildings and structures	($ 1,048,956)	($ 86,463)	$ -	$ -	$ 352	($ 1,135,067)
Machinery and equipment	( 895,335)	( 95,318)	141,992	-	24,926	( 823,735)
Molding equipment	( 2,006,428)	( 166,001)	6,550	-	( 562)	( 2,166,441)
Transportation equipment	( 29,255)	( 1,892)	2,411	-	1	( 28,735)
Furniture equipment	( 2,796)	( 87)	36	-	-	( 2,847)
Other equipment	( 168,141)	( 21,877)	7,074	-	528	( 182,416)
	($ 4,150,911)	($ 371,638)	$ 158,063	$ -	$ 25,245	( 4,339,241)
Accumulated Impairment
Machinery and equipment	($ 64,818)	($ 26,163)	$ 91,320	$ -	($ 339)	$ -
Transportation equipment	-	( 291)	281	-	10	-
Other equipment	( 5,299)	( 2,067)	4,870	-	2,496	-
	($ 70,117)	($ 28,521)	$ 96,471	$ -	$ 2,167	$ -
Total	$ 2,916,174					$ 2,957,340

	Year ended December 31, 2024
	Beginning balance	Additions	Decreases	Transfers	Net exchange differences	Ending balance
Cost
Land	$956,365	$77,700	$-	$-	$-	$1,034,065
Buildings and structures	1,614,968	67,615	(1,338)	22,436	15,363	1,719,044
Machinery and equipment	1,355,693	30,392	(128,930)	69,314	18,488	1,344,957
Molding equipment	2,308,680	77,433	(18,567)	53,962	1,132	2,422,640
Transportation equipment	35,101	-	(1,996)	-	87	33,192
Furniture equipment	3,022	51	(151)	-	29	2,951
Other equipment	223,208	17,426	(16,208)	12,096	1,376	237,898
Unfinished construction and equipment under acceptance	288,386	79,908	-	(27,759)	1,920	342,455
	$6,785,423	$350,525	($167,190)	$130,049	$38,395	$7,137,202
Accumulated Depreciation
Buildings and structures	($968,179)	($77,239)	$1,338	$-	($4,876)	($1,048,956)
Machinery and equipment	(904,107)	(102,234)	119,330	-	(8,324)	(895,335)
Molding equipment	(1,849,061)	(167,957)	11,290	-	(700)	(2,006,428)
Transportation equipment	(28,898)	(2,287)	1,996	-	(66)	(29,255)
Furniture equipment	(2,616)	(304)	146	-	(22)	(2,796)
Other equipment	(159,144)	(23,841)	15,532	-	(688)	(168,141)
	(3,912,005)	($373,862)	$149,632	$-	($14,676)	(4,150,911)
Accumulated Impairment
Machinery and equipment	$-	($64,422)	$-	$-	($396)	($64,818)
Other equipment	-	(5,279)	-	-	(20)	(5,299)
	$-	($69,701)	$-	$-	($416)	($70,117)
Total	$2,873,418					$2,916,174

A. Information about the property, plant and equipment that were pledged to others as collateral is provided in Note 8.
B. Transfers for the period were from equipment under acceptance.
C. There were no borrowing costs capitalized as part of property, plant and equipment for the years ended December 31, 2025 and 2024.
D. As of December 31, 2025, property, plant, and equipment are for personal use.
E. CHANGSHU FUTE entered into a plant sale agreement with Changshu Wan Nong Technology Co., Ltd on December 29, 2025, for the disposal of a factory building located at No. 8, Nanxin Road, Changkun Industrial Park, Changshu City. The scope of this disposal includes property, plant and equipment with a carrying amount of NT$111,869 thousand, right-of-use assets of NT$71,454 thousand, and investment property of NT$11,738 thousand, with a total carrying amount of NT$195,061 thousand. The total contract price for this transaction is NT$431,920 thousand. As of December 31, 2025, the transfer and delivery of legal title of the factory had not yet been completed; therefore, the related assets continue to be recognized as property, plant and equipment, right-of-use assets, and investment property. Subsequent to the execution of the contract, the Company received advance payments for the sale amounting to NT$89,827 thousand. The above-mentioned assets are detailed in Notes 6(8) and 6(9), and the related liabilities are detailed in Note 6(14). The Company will recognize the related disposal gain or loss when the conditions for the transfer of control are met.

(8) Lease transactions – lessee

A. The Group leases various assets including land and transportation equipment. Rental contracts are typically made for periods of 1 to 50 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes. Upon expiry of the lease, the terms of lease agreements do not give priority rights to renew the lease or purchase the property.
B. Short-term leases with a lease term of 12 months or less comprise certain buildings.
C. The carrying amount of right-of-use assets and the depreciation charge are as follows:

| | December 31, 2025
Carrying amount | December 31, 2024
Carrying amount |
| --- | --- | --- |
| Land | $ 124,095 | $ 128,289 |
| Transportation equipment
(Business vehicles) | 15,192 | 17,197 |
| | $ 139,287 | $ 145,486 |

	Years ended December 31,
	2025	2024
	Depreciation charge	Depreciation charge
Land	$ 4,191	$ 4,188
Transportation equipment (Business vehicles)	5,344	5,389
	$ 9,535	$ 9,577

D. For the years ended December 31, 2025 and 2024, the additions to right-of-use assets were $3,339 and $0, respectively.

E. Information on profit or loss in relation to lease contracts are as follows:

	Years ended December 31,
	2025	2024
Items affecting profit or loss
Interest expense on lease liabilities	$ 193	$ 257
Expense on short-term lease contracts	$ 17	$ 194
Expense on leases of low-value assets	$ 145	$ 785

F. For the years ended December 31, 2025 and 2024, the Group's total cash outflow for leases were $5,622 and $6544, respectively.

G. CHANGSHU FUTE entered into a factory sale agreement with Changshu Wan Nong Technology Co., Ltd on December 29, 2025, for the disposal of a factory building located at No. 8, Nanxin Road, Changkun Industrial Park, Changshu City. The scope of the disposal includes right-of-use assets with a carrying amount of NT$71,454 thousand. Details of the disposal are disclosed in Note 6(7).

(9) Investment property

	Year ended December 31, 2025
	Beginning balance	Additions	Decreases	Transfers	Net exchange differences	Ending balance
Cost
Land	$ 80,887	$ -	$ -	$ -	$ -	$ 80,887
Land use right	4,312	-	-	-	-	4,312
Buildings and structures	16,673	-	-	-	(1)	16,672
	$101,872	$ -	$ -	$ -	($ 1)	$101,871
Accumulated Depreciation
Land use right	($ 710)	($ 125)	$ -	$ -	($ 4)	($ 839)
Buildings and structures	(7,156)	(805)	-	-	(28)	(7,989)
	(7,866)	($ 930)	$ -	$ -	($ 32)	(8,828)
Total	$ 94,006					$ 93,043

~38~

Year ended December 31, 2024

	Beginning balance	Additions	Decreases	Transfers	Net exchange differences	Ending balance
Cost
Land	$ 80,887	$ -	$ -	$ -	$ -	$ 80,887
Land use right	4,151	-	-	-	161	4,312
Buildings and structures	16,048	-	-	-	625	16,673
	$101,086	$ -	$ -	$ -	$ 786	$101,872
Accumulated Depreciation
Land use right	($ 560)	($ 128)	$ -	$ -	($ 22)	($ 710)
Buildings and structures	( 6,085)	( 828)	-	-	( 243)	( 7,156)
	( 6,645)	($ 956)	$ -	$ -	($ 265)	( 7,866)
Total	$ 94,441					$ 94,006

A. Rental income from investment property and direct operating expenses arising from investment property are shown below:

	Years ended December 31,
	2025	2024
Rental income from investment property	$ 3,264	$ 4,073
Direct operating expenses arising from the investment property that generated rental income during the period	$ 930	$ 956

B. The fair value of the investment property held by the Group, which is the land, as at December 31, 2025 and 2024 was all $92,468. The land price is obtained from the actual value of real estate transactions of the Ministry of Interior, the fair value is classified as a level 2 fair value. The fair values of the investment properties held by the Group, which is the land use right and buildings and structures, as at December 31, 2025 and 2024 were $20,836 and $27,630, respectively. The valuations were made using the carrying amount of land use rights upon the expiry of the lease and the discounted inflow of future rental income for 3 years, using the borrowing interest rate of 4.2% and 4.2~4.35%, after taking into consideration of future economic growth and results of inflation. The fair value is classified as a level 3 fair value.

C. CHANGSHU FUTE subleases the land use rights of the property located in Changshu City, Jiangsu Province, China, through an operating lease to Kunshan Daqiao Machinery Equipment Co., Ltd. (referred to as Kunshan Daqiao Company) and Jiashengyu Intelligent Technology Co., Ltd. (referred to as Jiashengyu Company). The lease agreements expire in January and May, 2025. Subsequently, in March and June, 2025, half and all of the areas were respectively subleased to Suzhou Youda Material Recycling Co., Ltd. (referred to as Suzhou Youda Company) for a lease term of five years. As CHANGSHU FUTE entered into a contract on December 29,

2025, to sell all of its buildings and structures to Changshu Wan Nong Technology Co., Ltd, an agreement was executed to amend the lessor of the factory lease. Effective from April 1, 2026, Changshu Wan Nong Technology Co., Ltd became the lessor and succeeded to all rights and obligations under the Company's original lease agreement.

D. The Group acquired land located in the Yutengping section of Sanyi Township, Miaoli County in September 2023, and it is expected to be used for sustainable development.

E. The future aggregate minimum lease payments receivable are as follows:

	December 31, 2025	December 31, 2024
Not later than one year	$ 976	$ 8,921
Later than one year but not later than five years	-	8,921
	$ 976	$ 17,842

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

G. CHANGSHU FUTE entered into a factory sale agreement with Changshu Wan Nong Technology Co., Ltd on December 29, 2025, for the disposal of a factory building located at No. 8, Nanxin Road, Changkun Industrial Park, Changshu City. The scope of the disposal includes (9) investment property with a carrying amount of NT$11,738 thousand. Details of the disposal are disclosed in Note 6(7).

(10) Other non-current assets

	December 31, 2025	December 31, 2024
Prepayments for business facilities and construction	$ 106,641	$ 204,297
Net defined benefit asset	7,838	-
Guarantee deposits paid	5,964	7,046
Others	834	1,656
	$ 121,277	$ 212,999

(11) Impairment of non-financial assets

A. Due to strategic operational adjustments, the subsidiary of the Group in Changshu fully ceased production starting June 2024, leading to the recoverable amount of property, plant, and equipment being lower than their book value. The Group has adjusted their book value to the recoverable amount and recognised an impairment loss of $69,701 thousand.

B. In the first quarter of 2025, the Group recognised an impairment loss amounting to $28,521 thousand on the remaining equipment based on their value in use. For details and the recognised amounts, please refer to Note 6(7).

C. The aforementioned impairment loss was recognised in the current period's profit and loss under other operating segments.

~39~

(12) Other payables

	December 31, 2025	December 31, 2024
Machinery and equipment payable	$ 89,595	$ 43,211
Salaries and bonus payable	35,873	56,672
Employees’ compensation payable	7,798	8,892
Directors’ remuneration payable	3,899	5,928
Transportation fee payable	3,798	9,182
Others	44,635	41,273
	$ 185,598	$ 165,158

(13) Long-term borrowings

Type of borrowings	Borrowing period	Repayment term	December 31, 2025
Long-term bank borrowings
Unsecured borrowings	From December 26, 2019 to December 15, 2026	The loan is disbursed within three years after contract is signed; principal and interest are repayable monthly after a 3-year grace period; interest is repayable monthly; principal is repayable monthly in 48 installments	$ 12,000
Secured borrowings	From January 6, 2016 to January 6, 2031	Principal and interest are repayable monthly after a 3-year grace period	148,264
Secured borrowings	From December 26, 2019 to December 15, 2026	Principal and interest are repayable monthly after a 3-year grace period; interest is repayable monthly; principal is repayable monthly in 48 installments	92,000
Secured borrowings	From September 19, 2019 to December 15, 2029	The loan is disbursed within three years after contract is signed; principal and interest are repayable monthly after a 3-year grace period; interest is repayable monthly; principal is repayable monthly in 51 installments	59,518
			311,782
Less: Current portion			(148,046)
Less: Discount on government grants			(340)
			$ 163,396
Interest rate range			1.38%~1.91%

Type of borrowings	Borrowing period	Repayment term	December 31, 2024
Long-term bank borrowings
Unsecured borrowings	From December 26, 2019 to December 15, 2026	The loan is disbursed within three years after contract is signed; principal and interest are repayable monthly after a 3-year grace period; interest is repayable monthly; principal is repayable monthly in 48 installments	$ 24,000
Secured borrowings	From January 6, 2016 to January 6, 2031	Principal and interest are repayable monthly after a 3-year grace period	177,430
Secured borrowings	From December 26, 2019 to December 15, 2026	Principal and interest are repayable monthly after a 3-year grace period; interest is repayable monthly; principal is repayable monthly in 48 installments	184,000
Secured borrowings	From September 19, 2019 to December 15, 2029	The loan is disbursed within three years after contract is signed; interest is repayable monthly; principal is repayable monthly in 51 installments with a 3-year grace period on principal only	63,238
			448,668
Less: Current portion			( 136,815)
Less: Discount on government grants			( 364)
			$ 311,489
Interest rate range			1.38%~1.91%

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(14) Other current liabilities, others

	December 31, 2025	December 31, 2024
Advance payments for property sales	$ 89,827	$ -
Other	1,694	651
	$ 91,521	$ 651

CHANGSHU FUTE entered into a factory sale agreement with Changshu Wan Nong Technology Co., Ltd on December 29, 2025, for the disposal of a factory building located at No. 8, Nanxin Road, Changkun Industrial Park, Changshu City. The total carrying amount of the assets included in the disposal is NT$195,061 thousand, and the total consideration stipulated in the contract amounts to NT$431,920 thousand. Subsequent to the execution of the contract, the Company received advance payments for property sales amounting to NT$89,827 thousand. Details of the disposal are disclosed in Note 6(7).

(15) Government grants

As of December 31, 2025, the Group obtained government concessional loans under the "Action Plan for Welcoming Overseas Taiwanese Businesses to Return to Invest in Taiwan" from the Bank of Taiwan in the amounts of $432,000 and $48,000, respectively, for supporting capital expenditure and working capital. Such loans will mature in December 2029 and December 2026, respectively. The fair values for the loans were $424,935 and $47,277, respectively which were calculated at a market rate of 1.25% and 1.375%, respectively. The differences between the acquired amount obtained and the fair value were $7,065 and $723, respectively, which were deemed as a low interest loan subsidy from government and recognised in deferred revenue (shown as other non-current liabilities). The deferred revenue is reclassified to other income on a straight-line basis over their estimated useful life during the period of paying interest. The realised deferred government grants revenue were $927 and $1,431, respectively, for the years ended December 31, 2025 and 2024.

(16) Pensions

A.(a) The Company and its domestic subsidiaries have a defined benefit pension plan in accordance with the Labor Standards Act, covering all regular employees' service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Law. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company and its domestic subsidiaries contribute monthly an amount equal to 2% of the employees' monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company 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 for the deficit by next March.

(b) The amounts recognised in the balance sheet are as follows:

	December 31, 2025	December 31, 2024
Present value of defined benefit obligations	$ 10,099	$ 16,308
Fair value of plan assets	( 17,937)	( 16,342)
Net defined benefit (assets) liability	($ 7,838)	($ 34)

	2025
	Present value of defined benefit obligations	Fair value of plan assets	Net defined benefit (assets) liability
Balance at January 1	$ 16,308	($ 16,342)	($ 34)
Interest expense (income)	224	( 226)	( 2)
	16,532	( 16,568)	( 36)
Remeasurements:
Return on plan assets (excluding amounts included in interest income or expense)	-	( 1,163)	( 1,163)
Change in financial assumptions	56	-	56
Experience adjustments	( 6,489)	-	( 6,489)
	( 6,433)	( 1,163)	( 7,596)
Pension fund contribution	-	( 206)	( 206)
Balance at December 31	$ 10,099	($ 17,937)	($ 7,838)
	2024
	Present value of defined benefit obligations	Fair value of plan assets	Net defined benefit (assets) liability
Balance at January 1	$ 16,431	($ 14,658)	$ 1,773
Interest expense (income)	185	( 166)	19
	16,616	( 14,824)	1,792
Remeasurements:
Return on plan assets (excluding amounts included in interest income or expense)	-	( 1,314)	( 1,314)
Change in financial assumptions	( 183)	-	( 183)
Experience adjustments	( 125)	-	( 125)
	( 308)	( 1,314)	( 1,622)
Pension fund contribution	-	( 204)	( 204)
Balance at December 31	$ 16,308	($ 16,342)	($ 34)

(d) The Bank of Taiwan was commissioned to manage the fund of the Company's defined benefit pension plan assets 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 securitisation 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 therefore, the Company is unable to disclose the classification of plan assets fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as of December 31, 2024 and 2023 is given in the Annual Labor Retirement Fund Utilisation Report announced by the government.

(e) The principal actuarial assumptions used were as follows:

	December 31, 2025	December 31, 2024
Discount rate	1.25%	1.38%
Future salary increases	2.50%	2.50%

Future mortality rate was estimated based on the 6th Taiwan Standard Ordinary Experience Mortality Table for the years ended December 31, 2025 and 2024, respectively.

Sensitivity analysis of the effect on present value of defined benefit obligation due from the changes of main actuarial assumptions 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	($ 111)	$ 115	$ 112	($ 109)
December 31, 2024
Effect on present value of defined benefit obligation	($ 178)	$ 183	$ 179	($ 175)

The sensitivity analysis above is based on other condition that are unchanged but only one assumption is changed. In practice, more than one assumption may change all at once. The method utilised in sensitivity analysis is the same as the method utilised in calculating net pension liability on the balance sheet.

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

(f) Expected contributions to the defined benefit pension plans of the Group for the year ending December 31, 2026 amount to $202.
(g) As of December 31, 2025, the weighted average duration of that retirement plan is 4.5 years.
(h) The maturity analysis of pension payments is as follows:

Within 1 year	$	6,864
1-2 year(s)		274
3-4 years		176
Over 5 years		1,186
	$	8,500

B. (a) 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 contributes 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.
(b) The Company's mainland China subsidiaries, have a defined contribution plan. Monthly contributions to an independent fund administered by the government in accordance with the pension regulations in the People's Republic of China (PRC) are based on certain percentage of employees' monthly salaries and wages. The contribution percentage as at December 31, 2025 and 2024 were all $16\%$ . Other than the monthly contributions, the Group has no further obligations.
(c) For the aforementioned pension plan, the Group recognised pension costs of $10,604 and$ 11,798 for the years ended December 31, 2025 and 2024, respectively.

(17) Share capital

A. As of December 31, 2025, the Company's authorized capital was $1,000,000, constituting 100,000 thousand shares and the paid-in capital was$ 741,239 with a par value of $10 (in dollars) per share. All proceeds from shares issued have been collected.
B. Movements in the number of the Company's ordinary shares outstanding are as follows:

	2025	2024
	Number of thousand shares	Number of thousand shares
At January 1 and December 31	$ 74,124	$ 74,124

~46~

(18) Capital surplus

Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Act requires that the amount of capital surplus to be capitalized mentioned above should not exceed 10% of the paid-in capital each year. However, capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

	December 31, 2025	December 31, 2024
Used to offset deficits, distributed as cash dividends or transferred to share capital (Note 1)
Additional paid-in capital in excess of par-ordinary share	$ 1,163,298	$ 1,163,298
Difference between consideration and carrying amount of subsidiaries acquired	$ 2,125	$ 2,125
Assets received as donations	$ 20	$ 20
Used to offset accumulated deficits only (Note 2)
Changes in ownership interests in subsidiaries	$ 27,926	$ 27,926

Note 1: Such capital surplus can be used in offsetting deficit and distributed as cash dividends or transferred to capital provided that the Company has no deficit. However, the amount that can be transferred to capital is limited to a certain percentage of paid-in capital every year.

Note 2: Such capital surplus arises from the effect of changes in ownership interests in subsidiaries under equity transactions when there is no actual acquisition or disposal of subsidiaries by the Company, or from changes in capital surplus of subsidiaries.

(19) Retained earnings

A. According to the Company’s Articles of Incorporation, the current year’s earnings, if any, shall first be used to pay all taxes and offset against prior years’ operating losses and then be distributed as follows: 10% as legal reserve, and appropriate or reverse for special reserve until the legal reserve equals the Company’s paid-in capital. The remaining earnings, if any, may be appropriated along with the accumulated unappropriated earnings according to a resolution proposed by the Board of Directors and resolved at the shareholders’ meeting.

B. The Board of Directors of the Company may distribute all or part of dividends and bonuses, legal reserve and capital reserve in the form of cash, with the attendance of more than two-thirds of the directors and the resolution of more than half of the directors present, and reports it to the shareholders' meeting.

C. The Company's dividend policy is to distribute dividends to shareholders in line with current and future development plans, considering the investment environment, capital needs, and domestic and foreign competition conditions, and taking into account shareholders' interests and other factors. Shareholder dividends shall not be less than 40% of the distributable surplus of the current year, of which cash dividends should be more than 20% of the total dividends for shareholders, and the Board of Directors will submit it to the shareholders' meeting for resolution.

D. 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 distribution of the reserve is limited to the portion in excess of 25% of the Company's paid-in capital.

E. (a) In accordance with Order No. Financial-Supervisory-Securities-Corporate-1090150022, dated March 31, 2021, 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.

(b) The amounts previously set aside by the Company as special reserve in accordance with Order No. Financial-Supervisory-Securities-Corporate-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 appropriations of 2024 and 2023 earnings had been resolved at the shareholders' meeting on May 29, 2025 and May 30, 2024. Details are summarized below:

	Years ended December 31
	2024		2023
	Amount	Dividend per share (in dollars)	Amount	Dividend per share (in dollars)
Legal reserve appropriated	$ 37,291		$ 43,884
Special reserve reversed	(13,421)		(15,099)
Cash dividend	222,372	$ 3.00	222,372	$ 3.00

G. The appropriations of 2025 earnings have been approved by the Board of Directors during their meeting on March 5, 2026. Details are summarised below:

	Year ended December 31
	2025
	Amount	Dividend per share (in dollars)
Legal reserve appropriated	$ 18,500
Special reserve (reversed) appropriated	40,121
Cash dividend	185,310	$ 2.50

H. Refer to Note 6 (25) for further information relating to employees' compensation and directors' remuneration.

(20) Operating revenue

A. Disaggregation of revenue from contracts with customers

The Group derives revenue primarily from the transfer of goods at a point in time in the following products:

	Year ended December 31, 2025
	Y.C.C.	LIAONING HETAI	Other	Total
Auto parts	$ 1,322,562	$ 307,011	$ 10,621	$ 1,640,194
Others	12,270	-	8,714	20,984
	$ 1,334,832	$ 307,011	$ 19,335	$ 1,661,178
	Year ended December 31, 2024
	Y.C.C.	LIAONING HETAI	Other	Total
Auto parts	$ 1,478,186	$ 334,084	$ 100,039	$ 1,912,309
Others	13,055	-	6,727	19,782
	$ 1,491,241	$ 334,084	$ 106,766	$ 1,932,091

B. Contract liabilities

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

	December 31, 2025	December 31, 2024	January 1, 2024
Contract liabilities - advance sales receipts	$ 3,314	$ 8,800	$ 22,267

For the years ended December 31, 2025 and 2024, revenue recognised that were included in the contract liability balance at the beginning of the period amounted to $8,127 and $22,252, respectively.

(21) Other income

	Years ended December 31,
	2025	2024
Rent income	$ 7,040	$ 8,225
Dividend income	15,788	8,088
Revenue for government grants (Note)	1,176	2,885
Other income, others	21,820	36,700
	$ 45,824	$ 55,898

Note : This is to obtain relevant information on government subsidy income from Taiwanese companies returning to invest in Taiwan. Please refer to Note 6 (15) for details.

(22) Other gains and losses

	Years ended December 31,
	2025	2024
Foreign exchange (losses) gains	($ 18,179)	$ 97,317
(Losses) gains on financial assets and liabilities at fair value through profit or loss	(27,072)	19,650
Impairment loss	(28,521)	(69,701)
(Losses) gains on disposal of property, plant and equipment	(8,651)	1,977
Other gains (losses)	(6,254)	(2,821)
	($ 88,677)	$ 46,422

(23) Finance costs

	Years ended December 31,
	2025	2024
Interest expense:
Bank borrowings	$ 7,818	$ 11,754
Lease liabilities	193	257
	$ 8,011	$ 12,011

(24) Expenses by nature

	Years ended December 31,
	2025	2024
Employee benefit expense	$ 251,847	$ 300,674
Depreciation charges on property, plant and equipment	371,638	373,862
Depreciation charges on right-of-use assets	9,535	9,577
Depreciation charges on investment property	930	956
Amortisation	9,307	9,948
	$ 643,257	$ 695,017

(25) Employee benefit expense

	Years ended December 31,
	2025	2024
Wages and salaries	$ 203,304	$ 246,044
Labour and health insurance fees	19,989	19,881
Pension costs	10,602	11,817
Other personnel expenses	17,952	22,932
	$ 251,847	$ 300,674

A. Under the Company's Articles of Incorporation, the current year's earnings, if any, shall appropriate 1%~3% for employees' compensation. The proportion of this compensation allocated to rank-and-file employees, as determined by the Board of Directors, must not be less than 30%. Directors' compensation should not exceed 3% and can only be distributed in cash. However, if the company has accumulated losses, the amount required to cover these losses should be reserved first, before allocating employees' and directors' compensation according to the aforementioned proportions.

B. For the years ended December 31, 2025 and 2024, the accrued employees' compensation and directors' remuneration were as follows:

	Years ended December 31,
	2025	2024
Employees' compensation	$ 7,798	$ 8,892
Directors' remuneration	3,899	5,928
	$ 11,697	$ 14,820

For the years ended December 31, 2025 and 2024, the employees' compensation and directors' remuneration were estimated and accrued based on 3% and 1.8% as well as 1.5% and 1.20%, respectively, of distributable profit of current year as of the end of reporting period.

C. Employees' compensation and directors' remuneration of 2024 as resolved by the Board of Directors were in agreement with those amounts recognised in the 2024 financial statements.

D. Information about employees' compensation and directors' remuneration of the Company as resolved at the meeting of Board of Directors will be posted in the "Market Observation Post System" at the website of the Taiwan Stock Exchange.

(26) Income tax

A. Income tax expense

(a) Components of income tax expense

	Years ended December 31,
	2025	2024
Current tax:
Current tax on profits for the period	$ 62,363	$ 108,598
Prior year income tax under (over) estimation	430	(3,714)
Total income tax for the current period	62,793	104,884
Deferred tax :
Origination and reversal of temporary differences	7,827	16,302
Total deferred income tax	7,827	16,302
Income tax expense	$ 70,620	$ 121,186

(b) The income tax credit/(charge) relating to components of other comprehensive income is as follows:

	Years ended December 31,
	2025	2024
Remeasurement of defined benefit obligations	($ 1,516)	($ 324)

B. Reconciliation between income tax expense and accounting profit

	Years ended December 31,
	2025	2024
Tax calculated based on profit before tax and statutory tax rate	$ 48,193	$ 64,966
Expenses disallowed by tax regulation	6	561
Tax exempt income by tax regulation	5,202	( 5,865)
Temporary differences not recognized as deferred tax assets	15,315	32,109
Taxable loss not recognised as deferred tax assets	-	33,216
Change in assessment of realisation of deferred tax assets	( 62)	( 87)
Prior year income tax overestimation	430	( 3,714)
Other	1,536	-
Income tax expense	$ 70,620	$ 121,186

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

	2025
	January 1	Recognised in profit or loss	Recognised in other comprehensive income	December 31
Deferred tax assets:
Allowance for inventory valuation and obsolescence losses	$ 7,633	($ 1,413)	$ -	$ 6,220
Defined benefit plan	368	( 41)	1,116	1,443
Share of profit (loss) of subsidiaries accounted for under the equity method	80,563	-	-	80,563
Others	5,900	( 1,004)	-	4,896
	$ 94,464	($ 2,458)	$ 1,116	$ 93,122
Deferred tax liabilities:
Unrealised exchange profit	($ 1,378)	($ 3,532)	$ -	($ 4,910)
Defined benefit plan	-	-	($ 2,632)	( 2,632)
Others	-	( 1,837)	-	( 1,837)
	($ 1,378)	($ 5,369)	($ 2,632)	($ 9,379)
		($ 7,827)	($ 1,516)

(Remainder of page intentionally left blank)

~53~

	2024
	January 1	Recognised in profit or loss	Recognised in other comprehensive income	Net exchange differences	December 31
Deferred tax assets:
Allowance for inventory valuation and obsolescence losses	$ 11,159	($ 3,763)	$ -	$ 237	$ 7,633
Allowance for bad debts	3,549	( 2,756)	-	106	899
Unrealised exchange loss	5,474	( 5,474)	-	-	-
Defined benefit plan	729	( 37)	( 324)	-	368
Share of profit (loss) of subsidiaries accounted for under the equity method	80,563	-	-	-	80,563
Others	7,722	( 2,894)	-	173	5,001
	$ 109,196	($ 14,924)	($ 324)	$ 516	$ 94,464
Deferred tax liabilities:
Unrealised exchange profit	$ -	($ 1,378)	$ -	$ -	($ 1,378)
		($ 16,302)	($ 324)	$ 516

D. Expiration dates of unused tax losses and amounts of unrecognised deferred tax assets are as follows:

December 31, 2025
Year incurred	Amount filed/assessed	Unused amount	Unrecognised deferred tax assets	Expiry year
2018	Assessed	$ 70,910	$ 70,910	2023~2028
2019	Assessed	35,075	35,075	2024~2029
2020	Assessed	21,699	21,699	2025~2030
2021	Assessed	59,507	59,507	2026~2031
2022	Assessed	106,559	106,559	2027~2032
2023	Assessed	139,551	139,551	2028~2033
2024	Assessed	154,827	154,827	2029~2034
2025	Amount estimated to file	91,630	91,630	2030~2035
		$ 679,758	$ 679,758

December 31, 2024

Year incurred	Amount filed/assessed	Unused amount	Unrecognised deferred tax assets	Expiry year
2018	Assessed	$ 70,910	$ 70,910	2023~2028
2019	Assessed	35,075	35,075	2024~2029
2020	Assessed	21,699	21,699	2025~2030
2021	Assessed	59,507	59,507	2026~2031
2022	Assessed	106,559	106,559	2027~2032
2023	Assessed	139,551	139,551	2028~2033
2024	Amount estimated to file	154,827	154,827	2029~2034
		$ 588,128	$ 588,128

E. The amounts of deductible temporary difference that are not recognised as deferred tax assets are as follows:

	December 31, 2025	December 31, 2024
Deductible temporary differences	$ 567,099	$ 491,551

F. The Company's and domestic subsidiaries' income tax returns through 2023 have been assessed and approved by the Tax Authority.

G. As of December 31, 2025 and 2024, relevant information of current income tax liabilities and non-current income tax liabilities is as follows:

	December 31, 2025		December 31, 2024
	Income tax payable		Income tax payable
	Current (within one year)	Non-current (over one year)	Current (within one year)	Non-current (over one year)
2021	$ -	$ -	$ -	$ -
2022	-	-	37,055	969
2024	18,521	29,325	56,151	-
2025	54,804	-	-	-
	$ 73,325	$ 29,325	$ 93,206	$ 969

(Remainder of page intentionally left blank)

(27) Earnings per share

	Year ended December 31, 2025
	Amount after tax	Weighted average number of ordinary shares outstanding (share in thousands)	Earnings per share (in dollars)
Basic earnings per share
Profit attributable to ordinary shareholders of the parent	$ 178,923	74,124	$ 2.41
Diluted earnings per share
Profit attributable to ordinary shareholders of the parent	$ 178,923	74,124
Assumed conversion of all dilutive potential ordinary shares
-Employees’ compensation	-	199
Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	$ 178,923	74,323	$ 2.41
	Year ended December 31, 2024
	Amount after tax	Weighted average number of ordinary shares outstanding (share in thousands)	Earnings per share (in dollars)
Basic earnings per share
Profit attributable to ordinary shareholders of the parent	$ 371,612	74,124	$ 5.01
Diluted earnings per share
Profit attributable to ordinary shareholders of the parent	$ 371,612	74,124
Assumed conversion of all dilutive potential ordinary shares
-Employees’ compensation	-	183
Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	$ 371,612	74,307	$ 5.00

The number of weighted-average outstanding shares is included for assumed conversion of all dilutive potential ordinary shares at the calculation of diluted earnings per share, based on the assumption that employees' compensation will all be distributed in the form of shares.

(28) Supplemental cash flow information

Investing activities with partial cash payments:

	Year ended December 31, 2025
Purchase of property, plant and equipment	$	299,777
Add:Opening balance of notes payable		21,445
Opening balance of payable on equipment and construction		43,211
Less:Ending balance of notes payable	(	27,733)
Ending balance of payable on equipment and construction	(	89,595)
Transferred from inventories to property, plant and equipment	(	4,199)
Other (Note)		-
Cash paid during the period	$	242,906
	Year ended December 31, 2024
Purchase of property, plant and equipment	$	350,525
Add:Opening balance of notes payable		105,428
Opening balance of payable on equipment and construction		56,453
Less:Ending balance of notes payable	(	21,445)
Ending balance of payable on equipment and construction	(	43,211)
Transfer of inventory to property, plant and equipment	(	7,251)
Other (Note)	(	7,221)
Cash paid during the period	$	433,278

Note: In 2024, notes receivable were derecognized to pay for equipment.

	Year ended December 31, 2025
Transfer of property, plant and equipment	$	200,262
Add: Ending balance of prepayment for equipment		106,641
Less: Opening balance of prepayment for equipment	(	204,297)
Cash paid during the period	$	102,606
	Year ended December 31, 2024
Transfer of property, plant and equipment	$	130,049
Add: Ending balance of prepayment for equipment		204,297
Less: Opening balance of prepayment for equipment	(	298,832)
Cash paid during the period	$	35,514

(29) Changes in liabilities from financing activities

		Long-term borrowings (including current portion)	Guarantee deposits received	Lease liabilities (including non-current)	Dividends payable	Liabilities from financing activities gross
At January 1, 2025		$ 448,304	$ 1,850	$ 17,355	$ -	$ 467,509
Changes in cash flow from financing activities		(136,886)	14	(5,267)	(222,372)	(364,511)
Changes in other non-cash items		24	-	3,281	222,372	225,677
Impact of changes in foreign exchange rate		-	(1)	-	-	(1)
At December 31, 2025		$ 311,442	$ 1,863	$ 15,369	$ -	$ 328,674
	Short-term borrowings	Long-term borrowings (including current portion)	Guarantee deposits received	Lease liabilities (including non-current)	Dividends payable	Liabilities from financing activities gross
At January 1, 2024	$ 35,786	$ 580,013	$ 1,176	$ 22,663	$ -	$ 639,638
Changes in cash flow from financing activities	(37,280)	(133,167)	704	(5,308)	(222,372)	(397,423)
Changes in other non-cash items	-	-	-	-	222,372	222,372
Impact of changes in foreign exchange rate	1,494	1,458	(30)	-	-	2,922
At December 31, 2024	$ -	$ 448,304	$ 1,850	$ 17,355	$ -	$ 467,509

~58~

7. Related Party Transactions

Key management compensation

	Years ended December 31,
	2025	2024
Short-term employee benefits	$ 25,964	$ 26,347
Post-employment benefits	-	15
Total	$ 25,964	$ 26,362

8. Pledged Assets

The Group's assets pledged as collateral are as follows:

Pledged asset	Book value		Purpose
	December 31, 2025	December 31, 2024
Property, plant and equipment	$ 972,404	$ 960,582	Short-term borrowings and long-term borrowings
Financial assets at amortised cost - non-current	1,450	300	Natural gas for manufacturing
	$ 973,854	$ 960,882

9. Significant Contingent Liabilities and Unrecognised Contract Commitments

(1) Contingencies

None.

(2) Commitments

As of December 31, 2025 and 2024, the Group's capital expenditure contracted but not yet incurred in respect of machinery and equipment as well as construction of plants were $315,457 and $223,231, respectively.

10. Significant Disaster Loss

None.

11. Significant Events after the Balance Sheet Date

None.

~59~

12. Others

(1) Capital management

A. The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to maximize returns for shareholders and to optimize the balance of liabilities and equity.

B. The Group’s capital structure comprises net liabilities (borrowings net of cash and cash equivalents) and equity (common shares, capital surplus, retained earnings, other equity interest and non-controlling interests).

C. The Group has no obligation to comply with any external capital requirements.

D. The key management of the Group monitors the capital structure every year, including capital costs and related risks, and the Group may adjust capital structure by paying dividends to shareholders, issuing new shares, buying shares back and issuing new bonds or repaying old bonds based on the advices from the management.

(2) Financial instruments

A. Financial instruments by category

	December 31, 2025	December 31, 2024
Financial assets
Financial assets at fair value through profit or loss
Financial assets mandatorily measured at fair value through profit or loss	$ 112,791	$ 136,325
Financial assets at fair value through other comprehensive income
Designation of equity instruments	$ 132,121	$ 127,432
Financial assets at amortised cost
Cash and cash equivalents	$ 613,253	$ 561,073
Financial assets at amortised cost	1,450	29,467
Notes receivable	17,636	24,909
Accounts receivable	315,890	417,199
Other receivables	5,387	3,226
Guarantee deposits paid (shown as other non-current asset)	5,964	7,046
	$ 959,580	$ 1,042,920

	December 31, 2025	December 31, 2024
Financial liabilities
Financial liabilities at amortised cost
Notes payable	$ 110,816	$ 116,187
Accounts payable	65,560	63,949
Other payables	185,598	165,158
Long-term borrowings (including current portion)	311,442	448,304
Guarantee deposits received (shown as other non-current liability)	1,863	1,850
	$ 675,279	$ 795,448
Lease liabilities (including current portion)	$ 15,369	$ 17,355

B. Financial risk management policies

(a) The Group's activities expose it to a variety of financial risks: market risk (including foreign exchange risk and interest rate risk), credit risk and liquidity risk. To minimise any adverse effects on the financial performance of the Group, derivative financial instruments, such as foreign exchange forward contracts are used to hedge certain exchange rate risk. Derivatives are used for hedging exchange rate risk arising from export proceeds by using forward foreign exchange contracts.
(b) The Company treasury performs the financial risk management for each business unit. The treasury operates in domestic and international financial markets through planning and coordination, as well as monitors and manages the financial risks related to the Group's operation based on internal risk reports about exposure to risk with the analysis of the extent and width of risk.

The Board of Directors of the Company supervises the compliance by the management with financial risk policy and procedure, and reviews the appropriateness of structure of financial risk related to the Company. The internal auditors act as supervisors to assist the Board of Directors of the Company by conducting regular and irregular reviews, and report the results to the Board of Directors.

(c) Information about derivative financial instruments that are used to hedge certain exchange rate risk are provided in Note 6(2).

C. Significant financial risks and degrees of financial risks

(a) Market risk

Foreign exchange risk

i. The Group operates internationally and is exposed to foreign exchange risk arising from the transactions of the Company and its subsidiaries used in various functional currency, primarily with respect to the United States Dollar and Chinese Renminbi. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities.

ii. The companies within the Group are required to hedge their entire foreign exchange risk exposure with the Group treasury. Exchange rate risk is measured through a forecast of highly probable United States Dollar and Chinese Renminbi expenditures. Entities of the Group use natural hedge to decrease the risk exposure in the foreign currency through the Group treasury.

iii. The Group's businesses involve some non-functional currency operations (the Company's functional currency: New Taiwan Dollars; certain subsidiaries' functional currency: New Taiwan Dollars, United States Dollar and Chinese Renminbi). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations and analysis of foreign currency market risk arising from significant foreign exchange variation is as follows:

	December 31, 2025
	Foreign currency amount (In thousands)	Exchange rate	Book value (NTD)
(Foreign currency: functional currency)
Financial assets
Monetary items
USD : NTD	$ 22,432	31.43	$ 705,038
USD : RMB	96	7.00	3,021
RMB : NTD	78,453	4.50	352,725
RMB : USD	1,766	0.14	7,930
Financial liabilities
Monetary items
USD : RMB	$ 20	7.00	$ 629
RMB : NTD	526	4.50	2,365

~62~

	December 31, 2024
	Foreign currency amount (In thousands)	Exchange rate	Book value (NTD)
(Foreign currency: functional currency)
Financial assets
Monetary items
USD : NTD	$ 22,994	32.79	$ 753,853
USD : RMB	103	7.30	3,369
RMB : NTD	81,152	4.48	363,401
RMB : USD	1,931	0.14	8,864
Financial liabilities
Monetary items
USD : RMB	$ 113	7.30	$ 3,696
RMB : NTD	719	4.48	3,221

iv. The total exchange (loss) gain, including realised and unrealised, arising from significant foreign exchange variation on the monetary items held by the Group for the years ended December 31, 2025 and 2024, amounted to $18,179 and $97,317, respectively.

v. Analysis of foreign currency market risk arising from significant foreign exchange variation:

	Year ended December 31, 2025
	Sensitivity analysis
	Degree of variation	Effect on profit or loss	Effect on other comprehensive income
(Foreign currency: functional currency)
Financial assets
Monetary items
USD : NTD	1%	$ 7,050	$ -
USD : RMB	1%	30	-
RMB : NTD	1%	3,527	-
RMB : USD	1%	79	-
Financial liability
Monetary items
USD : RMB	1%	$ 6	$ -
RMB : NTD	1%	24	-

~63~

	Year ended December 31, 2024
	Sensitivity analysis
	Degree of variation	Effect on profit or loss	Effect on other comprehensive income
(Foreign currency: functional currency)
Financial assets
Monetary items
USD : NTD	1%	$ 7,540	$ -
USD : RMB	1%	34	-
RMB : NTD	1%	3,634	-
RMB : USD	1%	89	-
Financial liability
Monetary items
USD : RMB	1%	$ 37	-
RMB : NTD	1%	32	-

Price risk

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

ii. The Group’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 1% with all other variables held constant, per-tax profit for the years ended December 31, 2025 and 2024 would have increased/decreased by $1,128 and $1,363, respectively, as a result of losses/gains on equity securities classified as at fair value through profit or loss. Other components of equity would have decreased/increased by $1,321 and $1,274 respectively, as a result of other comprehensive income on classified as equity investment at fair value through other comprehensive income.

Cash flow and fair value interest rate risk

i. The Group’s main interest rate risk arises from short-term and long-term borrowings with variable rates, which expose the Group to cash flow interest rate risk. During the years ended December 31, 2025 and 2024, the Group’s borrowings at variable rate were mainly denominated in New Taiwan Dollars and Chinese Renminbi.

ii. If the borrowing interest rate had increased/decreased by 0.1% with all other variables held constant, profit before tax for the years ended December 31, 2025 and 2024 would have increased/decreased by $312 and $449, respectively. The main factor is that changes in interest expense result in floating-rate borrowings.

(b) Credit risk

i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms, and the contract cash flows of equity instruments stated at amortised cost, at fair value through profit or loss and at fair value through other comprehensive income.

ii. For banks and financial institutions, after reviewing deposit ratings, only the counterparties with good credit quality are accepted. According to the Group’s credit policy, each local entity in the Group is responsible for managing and analyzing 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. The utilization of credit limits is regularly monitored.

iii. The Group adopts credit risk management procedure 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 3 months based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.

iv. In line with credit risk management procedure, the default occurs when the contract payments are past due over 180 days.

v. Impairment loss is assessed and recognised when there is objective evidence that individual receivables cannot be recovered. The Group used historical and timely information to establish loss rate of remaining receivables and used the forecast ability to assess the default possibility of accounts receivable. As of December 31, 2025 and 2024, accumulated loss allowance provided for individually assessed receivables amounted to $0 in both periods., respectively. The Group used the forecast ability to adjust historical and timely information to assess the default possibility of remaining receivables (including notes receivable). On December 31, 2025 and 2024, the provision matrix is as follows:

	Not past due	1 to 60 days	61 to 120 days	121 to 180 days	181 to 240 days	Over 241 days	Total
December 31, 2025
Expected loss rate	0%~0.18%	0.12%~3.02%	0.84%~23.38%	5.17%~75.33%	33.23%~100%	100%
Total book value	$ 274,208	$ 63,695	$ 1,803	$ 1,822	$ -	$ 1,933	$343,461
Loss allowance	( 4,440)	( 1,130)	( 610)	( 1,822)	-	( 1,933)	( 9,935)
	$ 269,768	$ 62,565	$ 1,193	$ -	$ -	$ -	$333,526

~65~

	Not past due	1 to 60 days	61 to 120 days	121 to 180 days	181 to 240 days	Over 241 days	Total
December 31, 2024
Expected loss rate	0%~0.05%	0.05%~1.07%	0.14%~13.93%	0.67%~69.54%	8.08%~100%	100%
Total book value	$ 374,174	$ 69,032	$ 4,566	$ 253	$ 538	$ 3,742	$452,305
Loss allowance	( 3,671)	( 1,196)	( 903)	( 147)	( 538)	( 3,742)	( 10,197)
	$ 370,503	$ 67,836	$ 3,663	$ 106	$ -	$ -	$442,108

vi. Movements in relation to the Group applying the simplified approach to provide loss allowance for accounts receivable are as follows:

	2025
	Notes receivable	Accounts receivable	Total
At January 1	$ 208	$ 9,989	$ 10,197
Impairment loss	-	( 230)	( 230)
Effect of foreign exchange	-	( 32)	( 32)
At December 31	$ 208	$ 9,727	$ 9,935
	2024
	Notes receivable	Accounts receivable	Total
At January 1	$ 208	$ 22,141	$ 22,349
Reversal of impairment loss	-	( 12,645)	( 12,645)
Effect of foreign exchange	-	493	493
At December 31	$ 208	$ 9,989	$ 10,197

i. Cash flow forecasting is performed in the operating entities of the Group and aggregated by Group treasury. Group treasury monitors rolling forecasts of the Group's liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Group does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities.

ii. The Group has the following undrawn borrowing facilities:

	December 31, 2025	December 31, 2024
Floating rate:
Expiring within one year	$ 300,000	$ 300,000

iii. The table below analyses the Group's non-derivative financial liabilities and net-settled or gross-settled 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 and to the expected maturity date for derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.

Non-derivative financial liabilities:

December 31, 2025	Less than 1 year	Between 1 and 2 years	Between 2 and 3 years	Between 3 and 5 years	Over 5 years	Total
Notes payable	$ 110,816	$ -	$ -	$ -	$ -	$ 110,816
Accounts payable	65,560	-	-	-	-	65,560
Other payables	185,598	-	-	-	-	185,598
Lease liability	5,633	4,684	4,050	1,322	-	15,689
Long-term borrowings (including current portion)	146,185	40,812	40,144	89,896	6,811	323,848

Non-derivative financial liabilities:

December 31, 2024	Less than 1 year	Between 1 and 2 years	Between 2 and 3 years	Between 3 and 5 years	Over 5 years	Total
Notes payable	$ 116,187	$ -	$ -	$ -	$ -	$ 116,187
Accounts payable	63,949	-	-	-	-	63,949
Other payables	165,158	-	-	-	-	165,158
Lease liability	5,461	4,943	3,995	3,361	-	17,760
Long-term borrowings (including current portion)	141,343	146,185	40,812	79,619	57,232	465,191

(3) Fair value information

A. The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:

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

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The fair value of the Group's investment in foreign exchange swap contracts is included in Level 2.

Level 3: Unobservable inputs for the asset or liability.

B. Fair value information of investment property at cost is provided in Note 6(9).

C. Financial instruments not measured at fair value

The carrying amounts of financial instruments not measured at fair value are approximate to their fair value, including cash and cash equivalents, current financial assets at fair value through profit or loss, financial assets at amortised cost, notes receivable, accounts receivable, other receivables, guarantee deposits paid, notes payable, accounts payable, other payables, long-term borrowings (including current portion), guarantee deposits received and lease liabilities (including current portion).

D. The related information of financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities on December 31, 2025 and 2024, are as follows:

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

	Level 1	Level 2	Level 3	Total
December 31, 2025
Assets
Recurring fair value measurements
Financial assets at fair value through profit or loss	$ 103,991	$ 8,800	$ -	$ 112,791
Financial assets at fair value through other comprehensive income
- Equity securities	$ 132,121	$ -	$ -	$ 132,121
Liabilities
	Level 1	Level 2	Level 3	Total
December 31, 2024
Assets
Recurring fair value measurements
Financial assets at fair value through profit or loss	$ 135,933	$ 392	$ -	$ 136,325
Financial assets at fair value through other comprehensive income
- Equity securities	$ 127,432	$ -	$ -	$ 127,432

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

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

	Listed shares
Market quoted price	Closing price

ii. Foreign exchange swap contracts are usually valued based on the current foreign exchange swap rate and the transactions are included in Level 2.

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

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

Supplementary Disclosures

(1) Significant transactions information

A. Loans to others: Please refer to table 1.

B. Provision of endorsements and guarantees to others: None.

C. Holding of significant marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to table 2.

D. Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid-in capital or more: None.
E. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 3.
F. Significant inter-company transactions during the reporting period: Please refer to table 4.

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Please refer to table 5.

(3) Information on investments in Mainland China

A. Basic information: Please refer to table 6.
B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: Please refer to Note 13(1), Significant transactions information.

Segment Information

(1) General information

Management has determined the reportable operating segments based on the reports reviewed by the Chief Operating Decision-Maker that are used to make strategic decisions. The reportable operating segments are separated as Y.C.C. PARTS MFG. CO., LTD. and LIAONING HETAI AUTOMOTIVE PARTS CO., LTD. The Group's reportable operating segments are the result of the organisation divided by operating business.

(2) Measurement of segment information

The Chief Operating Decision-Maker evaluates the performance of the operating segments based on a measure of adjusted profit from operations.

(3) Information about segment profit or loss, assets and liabilities

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

	Year ended December 31, 2025
	Y.C.C.	LIAONING HETAI	Total
Revenue
External Customer Revenue	$ 1,334,832	$ 307,011	$ 1,641,843
Internal Customer Revenue	12,245	-	12,245
Total	$ 1,347,077	$ 307,011	$ 1,654,088
Departmental Pre-Tax Profit and Loss	$ 340,033	$ 1,215	$ 341,248
The departmental profit and loss includes :
Interest Income	$ 32,779	$ 13	$ 32,792
Interest Expense	$ 7,161	$ 3,276	$ 10,437
Depreciation and Amortization	$ 326,449	$ 29,145	$ 355,594
Income Tax Expense	$ 69,901	$ -	$ 69,901

~69~

Year ended December 31, 2024

	Y.C.C.	LIAONING HETAI	Total
Revenue
External Customer Revenue	$ 1,491,241	$ 334,084	$ 1,825,325
Internal Customer Revenue	35,126	1,224	36,350
Total	$ 1,526,367	$ 335,308	$ 1,861,675
Departmental Pre-Tax Profit and Loss	$ 644,513	($ 1,733)	$ 642,780
The departmental profit and loss includes :
Interest Income	$ 38,805	$ 67	$ 38,872
Interest Expense	$ 9,629	$ 4,945	$ 14,574
Depreciation and Amortization	$ 300,069	$ 30,189	$ 330,258
Impairment loss	$ 69,701	$ -	$ 69,701
Income Tax Expense	$ 107,551	$ -	$ 107,551

(4) Reconciliation for segment income (loss)

i. The reconciliation of current period continuing operations departmental revenue is as follows:

	Years ended December 31,
	2025	2024
The Reportable Operating Segments Revenue	$ 1,654,088	$ 1,861,675
The Revenue from Other Departments	46,262	109,311
The Total of Operating Departments	1,700,350	1,970,986
Elimination of Interdepartmental Revenue	( 39,172)	( 38,895)
The Total Consolidated Operating Revenue	$ 1,661,178	$ 1,932,091

ii. The reconciliation of current period reportable operating segments pre-tax net income is as follows:

	Years ended December 31,
	2025	2024
The Reportable Operating Segments Pre-Tax Net Income	$ 341,248	$ 636,836
The Pre-Tax Net Loss from Other Departments	( 100,281)	( 160,615)
The Total of Operating Departments	240,967	476,221
Elimination of Interdepartmental Profit and Loss	-	-
The Total Consolidated Operating Pre-Tax Net Income	$ 240,967	$ 476,221

(5) Information on products

Please refer to Note 6 (20) for the related information.

(6) Geographical information

Geographical information for the years ended December 31, 2025 and 2024 is as follows:

	2025		2024
	Revenue	Non-current assets	Revenue	Non-current assets
Taiwan	$ 484,225	$ 2,778,627	$ 572,228	$ 2,620,498
China	261,565	528,689	388,744	744,236
USA	756,443		815,018
Others	158,945	-	156,101	-
	$ 1,661,178	$ 3,307,316	$ 1,932,091	$ 3,364,734

Revenue was calculated based on geographic location of segments. Non-current assets were classified based on geographic location of assets, including property, plant and equipment, intangible assets and other non-current assets but excluding financial instruments, guarantee deposits paid and deferred income tax. Geographical information for the years ended December 31, 2025 and 2024 is stated as above.

(7) Major customer information

Major customer information of the Group for the years ended December 31, 2025 and 2024 is as follows:

	Years ended December 31,
	2025	2024
	Revenue	Revenue
A Group	$ 255,016	$ 384,777
B customer	128,222	182,987
	$ 383,238	$ 567,764

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Y.C.C. PARTS MFG. CO., LTD. and subsidiaries

Loans to others

Year ended December 31, 2025

Table 1
Expressed in thousands of NTD
(Except as otherwise indicated)

No. (Note 1)	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance during the year ended December 31, 2025	Balance at December 31, 2025	Actual amount drawn down	Interest rate	Nature of loan (Note 4)	Amount of transactions with the borrower	Reason for short-term financing	Allowance for doubtful accounts	Collateral		Limit on loans granted to a single party (Note 3)	Ceiling on total loans granted (Note 3)
													Item	Value
0	Y.C.C. PARTS MFG. CO., LTD.	RISE BRIGHT HOLDINGS LTD.	Other receivables	Y	$ 220,010	$ 110,005	$ 110,005	1.4%	2	$ -	Operating capital	$ -	N	$ -	$ 403,236	$ 1,612,946
0	Y.C.C. PARTS MFG. CO., LTD.	UNITED SKILLS CO., LTD.	Other receivables	Y	75,000	50,000	36,000	0.77%	2	-	Operating capital	-	N	-	403,236	1,612,946
0	Y.C.C. PARTS MFG. CO., LTD.	CHANGSHU FUTEAUTOMOTIVE TRIM CO., LTD.	Other receivables	Y	602,011	330,204	205,973	4.00%	2	-	Operating capital	-	N	-	403,236	1,612,946
0	Y.C.C. PARTS MFG. CO., LTD.	LIAONING HETAI AUTOMOTIVE PARTS CO.,LTD.	Other receivables	Y	179,654	89,827	76,353	4.35%	2	-	Operating capital	-	N	-	403,236	1,612,946
0	Y.C.C. PARTS MFG. CO., LTD.	CHANG JIE TECHNOLOGY CO., LTD.	Other receivables	Y	31,439	31,439	31,439	3.00%	2	-	Operating capital	-	N	-	403,236	1,612,946
1	CHINA FIRST HOLDINGS LTD.	CHANGSHU FUTEAUTOMOTIVE TRIM CO., LTD.	Other receivables	Y	15,715	-	-	-	2	-	Operating capital	-	N	-	23,393	93,572

Note 1: The numbers filled in for the loans provided by the Company or subsidiaries are as follows:
(1)The Company is $0^{\prime}$
(2)The subsidiaries are numbered in order starting from '1'.
Note 2: Balance at September 30, 2025 and actual amount drawn down were calculated at the RMB to USD and USD to TWD spot buy and selling spot exchange rate of 0.1429 and 31.43 on December 31, 2025.
Note 3: Limit on total loans granted to others by the Company is $40\%$ of the net assets and limit on loans granted to a single party is $10\%$ of the net assets.
Note 4: The nature of the loan are as follows:
(1) Fill in '1' for business transaction.
(2) Fill in '2' for short-term financing.

Y.C.C. PARTS MFG. CO., LTD. and subsidiaries

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

December 31, 2025

Table 2
Expressed in thousands of NTD
(Except as otherwise indicated)

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account	As of December 31, 2025
				Number of shares	Book value	Ownership (%)	Fair value
Y.C.C. PARTS MFG. CO., LTD.	HIROCA HOLDINGS LTD.	N	Current financial assets at fair value through profit or loss	320,000	$ 19,877	0.38%	$ 6,592
Y.C.C. PARTS MFG. CO., LTD.	GORDON AUTO BODY PARTS CO., LTD.	N	Current financial assets at fair value through profit or loss	2,518,000	25,540	1.52%	70,000
Y.C.C. PARTS MFG. CO., LTD.	SHUN ON ELECTRONIC CO., LTD.	N	Current financial assets at fair value through profit or loss	73,000	3,342	0.05%	1,862
Y.C.C. PARTS MFG. CO., LTD.	NUUO INC.	N	Current financial assets at fair value through profit or loss	2,053	112	0.02%	177
Y.C.C. PARTS MFG. CO., LTD.	TANVEX BIOLOGICS CORPORATION	N	Current financial assets at fair value through profit or loss	277,869	37,717	0.12%	15,283
Y.C.C. PARTS MFG. CO., LTD.	Yuanta/P-shares Taiwan Top 50 ETF	N	Current financial assets at fair value through profit or loss	10,000	610	0.00%	656
Y.C.C. PARTS MFG. CO., LTD.	S&P GSCI Gold Excess Return Index	N	Current financial assets at fair value through profit or loss	10,000	449	0.00%	464
UNITED SKILLS CO., LTD.	WANHWA ENTERPRISE COMPANY	N	Current financial assets at fair value through profit or loss	100,000	1,227	0.02%	1,110
UNITED SKILLS CO., LTD.	LASTER TECH CO., LTD.	N	Current financial assets at fair value through profit or loss	315,000	10,751	0.26%	6,032
UNITED SKILLS CO., LTD.	COWEALTH MEDICAL HOLDING CO., LTD.	N	Current financial assets at fair value through profit or loss	68,000	2,038	0.09%	1,724
UNITED SKILLS CO., LTD.	TANVEX BIOLOGICS CORPORATION	N	Current financial assets at fair value through profit or loss	1,667	235	0.00%	91
			Valuation adjustment		2,093		$ 103,991
					$ 103,991
Y.C.C. PARTS MFG. CO., LTD.	HIROCA HOLDINGS LTD.	N	Non-current financial assets at fair value through other comprehensive income	855,000	$ 81,855	1.02%	$ 17,613
Y.C.C. PARTS MFG. CO., LTD.	GORDON AUTO BODY PARTS CO., LTD.	N	Non-current financial assets at fair value through other comprehensive income	4,119,000	91,224	2.49%	114,508
			Valuation adjustment		( 40,958)		$ 132,121
					$ 132,121

Table 2, Page 1

Y.C.C. PARTS MFG. CO., LTD. and subsidiaries

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

December 31, 2025

Table 3
Expressed in thousands of NTD
(Except as otherwise indicated)

Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31, 2025 (Note 1)	Turnover rate (Note 4)	Overdue receivables		Amount collected subsequent to the balance sheet date (Note5)	Allowance for doubtful accounts	Footnote
					Amount	Action taken
Y.C.C. PARTS MFG. CO., LTD.	CHANGSHU FUTE AUTOMOTIVE TRIM CO., LTD.	Subsidiary	$ 209,463	$ -	$ -	$ -	$ 46,309	$ -	Note 2
Y.C.C. PARTS MFG. CO., LTD.	RISE BRIGHT HOLDINGS LTD.	Subsidiary	117,530	-	-	-	3,430	-	Note 3

Note 1: The transactions were eliminated when preparing the consolidated financial statements.
Note 2: It pertains to principal and interest aggregating to $209,463 from loans to the subsidiary shown as other receivables.
Note 3: It pertains to principal and interest aggregating to $110,946 from loans to the subsidiary shown as other receivables and sales of product amounting to $6,584 shown as accounts receivable.
Note 4: Only accounts receivable was used for the calculation of turnover rate.
Note 5: Subsequent collection is the amount collected as of February 22, 2025.

Table 3, Page 1

Y.C.C. PARTS MFG. CO., LTD. and subsidiaries

Significant inter-company transactions during the reporting periods

Year ended December 31, 2025

Table 4

Expressed in thousands of NTD

(Except as otherwise indicated)

Number (Note 1)	Company name	Counterparty	Relationship (Note 2)	Transaction
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note 3)
0	Y.C.C. PARTS MFG. CO., LTD.	RISE BRIGHT HOLDINGS LTD.	1	Other receivables	$ 110,946	Based on the contract	2.22%
0	Y.C.C. PARTS MFG. CO., LTD.	CHANGSHU FUTE AUTOMOTIVE TRIM CO., LTD.	1	Other receivables	209,463	Based on the contract	4.19%
0	Y.C.C. PARTS MFG. CO., LTD.	LIAONING HETAI AUTOMOTIVE PARTS CO.,LTD	1	Other receivables	83,208	Based on the contract	1.66%
0	Y.C.C. PARTS MFG. CO., LTD.	UNITED SKILLS CO., LTD	1	Other receivables	36,250	Based on the contract	0.72%
0	Y.C.C. PARTS MFG. CO., LTD.	CHANG JIE TECHNOLOGY CO., LTD.	1	Accounts receivable	11,290	Based on the contract	0.23%
1	CHANG JIE TECHNOLOGY CO., LTD.	Y.C.C. PARTS MFG. CO., LTD.	2	Contract liabilities	21,358	Based on the contract	0.43%

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; fill in the number of category each case belongs to (If transactions between parent company and subsidiaries or between subsidiaries refer to the same transaction, and subsidiaries or between subsidiaries refer to it is not required to disclose twice. For example, if the parent company has already disclosed its transaction with a subsidiary, then the subsidiary is not required to disclose the transaction; for transactions between two subsidiaries, if one of the subsidiaries has disclosed the transaction, then the other is not required to disclose the transaction.):
(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: Transaction amount that did not reach $10 million or more will not be disclosed.
Note 5: The transactions were eliminated when preparing the consolidated financial statements.

Y.C.C. PARTS MFG. CO., LTD. and subsidiaries

Information on investees

Year ended December 31, 2025

Table 5
Expressed in thousands of NTD
(Except as otherwise indicated)

Investor	Investee	Location	Main business activities	Initial investment amount		Shares held as at December 31, 2025			Net profit (loss) of the investee for the year ended December 31, 2025	Investment income (loss) recognised by the Company for the year ended December 31, 2025	Footnote
				Balance as at December 31, 2025	Balance as at December 31, 2024	Number of shares	Ownership (%)	Book value
Y.C.C. PARTS MFG. CO., LTD.	UNITED SKILLS CO., LTD.	Taiwan	Wholesale and retail of health supplements, online shopping and mail order	$ 98,000	$ 50,000	9,800	100.00%	$ 84,842	($ 14,625)	($ 14,625)	Subsidiary (Note 1)
Y.C.C. PARTS MFG. CO., LTD.	RISE BRIGHT HOLDINGS LTD.	Samoa	Holding company	1,235,358	1,235,358	-	100.00%	221,715	( 95,813)	( 95,813)	Subsidiary (Note 2)
RISE BRIGHT HOLDINGS LTD.	CHINA FIRST HOLDINGS LTD.	Samoa	Holding company	1,158,673	1,158,673	-	89.44%	209,227	( 79,755)	( 71,333)	Subsidiary (Note 2)
UNITED SKILLS CO., LTD.	Hordersen Biotech Co., Ltd.	Taiwan	Wholesale and retail of health supplements, online shopping and mail order	1,000	-	100	100.00%	997	( 3)	( 3)	Subsidiary (Note 3)

Note 1: The company does not hold any share in the investee because the investee is a limited company.
Note 2: The transactions were eliminated when preparing the consolidated financial statements.
Note 3: The company approved the establishment of a subsidiary, Hordersen Biotech Co., Ltd., on November 21, 2025. As of December 31, 2025, the subsidiary had completed a capital increase of NT$1,000 thousand.

Y.C.C. PARTS MFG. CO., LTD. and subsidiaries

Information on investments in Mainland China

Year ended December 31, 2025

Table 6

Expressed in thousands of NTD

(Except as otherwise indicated)

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 investor as of 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 5)	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
					Remitted to Mainland China	Remitted back to Taiwan
CHANGSHU FUTE AUTOMOTIVE TRIM CO., LTD.	Injecting and surface coating air bag covers of automobiles,producing and selling various accessories of automobiles and electronic plastic parts	$ 483,600	2	$ 890,664	$ -	$ -	$ 890,664	($ 80,745)	89.44%	($ 72,219)	($ 16,352)	$ -	Note 2-5
LIAONING HETAI AUTOMOTIVE PARTS CO., LTD.	Injecting and surface coating parts of air bags with inflation system,covers, interior and exterior accessories of air bag and electronic equipment systems	347,588	2	268,009	-	-	268,009	1,215	73.89%	897	205,937	-	Note 3
CHANG JIE TECHNOLOGY CO., LTD.	Injecting and surface coating air bag covers of automobiles,producing and selling various accessories of automobiles and automatic production equipments for spraying	176,406	2	177,602	-	-	177,602	( 24,950)	99.83%	( 24,908)	93,239	-	Note 4

Note 1: Investment methods are classified into the following three categories:
(1) Directly invest in a company in Mainland China.
(2) Through investing in existing companies in the third area, RISE BRIGHT HOLDINGS LTD. and CHINA FIRST HOLDINGS LTD., which then invested in the investor in Mainland China.
(3) Others.
Note 2: Paid-in capital is US$16,000 thousand and accumulated amount of remittance from Taiwan to Mainland China is US$28,300 thousand.
Note 3: Paid-in capital is US$11,500 thousand and accumulated amount of remittance from Taiwan to Mainland China is US$8,591 thousand.
Note 4: Paid-in capital is US$6,000 thousand and accumulated amount of remittance from Taiwan to Mainland China is US$6,070 thousand.
Note 5: Investment income (loss) recognised by the Company for the year ended December 31, 2025 was based on the financial statements that were audited by parent company's CPA.

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
Y.C.C. PARTS MFG. CO., LTD.	$ 1,336,275	$ 1,337,564	$ 2,463,398

Note 1: Calculation for ceiling on investments in Mainland China (60% of net assets) is based on MOEA "Regulations Governing the Permission of Investment or Technical Cooperation in Mainland Area".
Note 2: At the end of this period, the investment amount transmitted from Taiwan to mainland China was US$42,961 thousand. The investment amount permitted by the Investment Commission of Ministry of Economic Affairs(MOEA) was US$48,765 thousand.
Note 3: The investment amount permitted by the Investment Commission of Ministry of Economic Affairs(MOEA) to CHANG JIE TECHNOLOGY CO., LTD. was RMB$10,000 thousand.
There is US$10 thousand difference with MOEA due to exchange rate fluctuations. Paid-in capital is US$1,560 thousand and accumulated amount of remittance from Taiwan to Mainland China is US$1,570 thousand.

AI assistant

Y.C.C. Audit Report / Information 2025

51783_rns_2026-04-23_22d0c1b9-b456-4978-ad04-46396c5e79aa.pdf

Representation Letter

INDEPENDENT AUDITORS' REPORT TRANSLATED FROM CHINESE

Opinion

Basis for opinion

Key audit matters

Cut-off of sales revenue recognition

Description

How our audit addressed the matter

Assessment of allowance for inventory valuation loss

Description

How our audit addressed the matter

Other matter – Parent company only financial reports

Responsibilities of management and those charged with governance for the consolidated financial statements

Auditors' responsibilities for the audit of the consolidated financial statements

(4) Foreign currency translation

6. Details of Significant Accounts

(1) Cash and cash equivalents

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

(8) Lease transactions – lessee

(17) Share capital

7. Related Party Transactions

8. Pledged Assets

9. Significant Contingent Liabilities and Unrecognised Contract Commitments

10. Significant Disaster Loss

11. Significant Events after the Balance Sheet Date

12. Others

(1) Capital management

(2) Financial instruments

B. Financial risk management policies

Price risk

Cash flow and fair value interest rate risk

(4) Reconciliation for segment income (loss)

(5) Information on products

AI assistant

Y.C.C. — Audit Report / Information 2025

51783_rns_2026-04-23_22d0c1b9-b456-4978-ad04-46396c5e79aa.pdf

Representation Letter

INDEPENDENT AUDITORS' REPORT TRANSLATED FROM CHINESE

Opinion

Basis for opinion

Key audit matters

Cut-off of sales revenue recognition

Description

How our audit addressed the matter

Assessment of allowance for inventory valuation loss

Description

How our audit addressed the matter

Other matter – Parent company only financial reports

Responsibilities of management and those charged with governance for the consolidated financial statements

Auditors' responsibilities for the audit of the consolidated financial statements

(4) Foreign currency translation

6. Details of Significant Accounts

(1) Cash and cash equivalents

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

(8) Lease transactions – lessee

(17) Share capital

7. Related Party Transactions

8. Pledged Assets

9. Significant Contingent Liabilities and Unrecognised Contract Commitments

10. Significant Disaster Loss

11. Significant Events after the Balance Sheet Date

12. Others

(1) Capital management

(2) Financial instruments

B. Financial risk management policies

Price risk

Cash flow and fair value interest rate risk

(4) Reconciliation for segment income (loss)

(5) Information on products

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Y.C.C. Audit Report / Information 2025