YFYCPG — Audit Report / Information 2025

Apr 28, 2026

Yuen Foong Yu Consumer Products Co., Ltd.

Parent Company Only Financial Statements for the Years Ended December 31, 2025 and 2024 and Independent Auditors’ Report

INDEPENDENT AUDITORS’ REPORT

The Board of Directors and Shareholders Yuen Foong Yu Consumer Products Co., Ltd.

Opinion

We have audited the accompanying parent company only financial statements of Yuen Foong Yu Consumer Products Co., Ltd. (the “Company”), which comprise the balance sheets as of December 31, 2025 and 2024, and the statements of comprehensive income, changes in equity and cash flows for the years then ended, and the notes to the parent company only financial statements, including a summary of significant accounting policies (collectively referred to as the “parent company only financial statements”).

In our opinion, based on our audits and the report of other auditors (please refer to the Other Matter paragraph), the accompanying parent company only financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

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

Key Audit Matter

Key audit matter is the matter that, in our professional judgment, was of most significance in our audit of the parent company only financial statements for the year ended December 31, 2025. The matter was addressed in the context of our audit of the parent company only financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on the matter.

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The key audit matter identified in the Company’s parent company only financial statements for the year ended December 31, 2025 is as follows:

Valuation of Receivables

The Company has a large number of customers and its notes and accounts receivable are material in amount. When evaluating the impairment of receivables, the management estimated the loss allowance based on the lifetime expected credit loss. The valuation of receivables involves accounting estimates and assumptions determined by the management. Therefore, we considered the valuation of receivables as a key audit matter.

For the disclosures related to receivables, refer to Notes 4, 5 and 7 to the parent company only financial statements.

Our audit procedures for the abovementioned key audit matter included the following:

1. We obtained the reports on impaired receivables and assessed the reasonableness of the methodology and data used in the reports.

2. We tested the receivables aging schedule and reviewed the calculation of expected credit loss for reasonableness of the recognized expected credit loss on receivables.

3. We tested the recoverability of receivables by analyzing overdue accounts and by verifying cash receipts in the subsequent period. For a receivable that was past due but not yet received, we assessed the reasonableness of the expected credit loss based on the customer’s payment history, customer’s credit policy control and tracking of overdue receivables.

Other Matter

Among the investments accounted for using the equity method in the Company’s parent company-only financial statements, we have not audited the financial statements for the years ended December 31, 2025 and 2024 of Livebricks Inc., which is investee of Yuen Foong Shop Company, Ltd. and is accounted for using the equity method, and it has instead been audited by other accountants. Therefore, in our expression of an opinion on the above-mentioned parent company-only financial statements, the amounts listed in the financial statements are based on the audit reports of other accountants. The investment amounts accounted for using the equity method and audited by other accountants as of December 31, 2025 and 2024, were NT$28,276 thousand and NT$26,724 thousand, respectively, both representing 0.3% of total assets. For the years ended December 31, 2025 and 2024, the share of profits and losses from subsidiaries accounted for using the equity method amounted to NT$22,811 thousand and NT$23,462 thousand, respectively, representing 3.2% and 2.5% of total comprehensive income.

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

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

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

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

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

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

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

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

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

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

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

5. Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

6. 3 -

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

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

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

From the matters communicated with those charged with governance, we determine the matter that was of most significance in the audit of the parent company only financial statements for the year ended December 31, 2025, and is therefore the key audit matter. We describe the matter 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.

The engagement partners on the audits resulting in this independent auditors’ report are Yi-Ling Chen and Shu-Jiuan Ye.

Deloitte & Touche Taipei, Taiwan Republic of China

February 24, 2026

Notice to Readers

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

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

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YUEN FOONG YU CONSUMER PRODUCTS CO., LTD.

PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars)

ASSETS CURRENT ASSETS Cash and cash equivalents (Notes 4 and 6) Notes and accounts receivable (Notes 4, 5, 7 and 15) Accounts receivable from related parties (Notes 4, 5, 15 and 21) Inventories (Notes 4 and 8) Other current assets (Note 21) Total current assets NON-CURRENT ASSETS Investments accounted for using equity method (Notes 4 and 9) Property, plant and equipment (Notes 4, 10 and 21) Right-of-use assets (Notes 4 and 11) Deferred tax assets (Notes 4 and 17) Other non-current assets (Notes 4 and 13) Total non-current assets TOTAL ASSETS LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Note 12) Notes and accounts payable Accounts payable to related parties (Note 21) Other payables (Note 21) Current tax liabilities (Note 4) Lease liabilities - current (Notes 4 and 11) Current portion of long-term borrowings (Note 12) Other current liabilities (Note 15) Total current liabilities NON-CURRENT LIABILITIES Long-term borrowings (Note 12) Deferred tax liabilities (Notes 4 and 17) Lease liabilities - non-current (Notes 4 and 11) Other non-current liabilities Total non-current liabilities Total liabilities EQUITY (Notes 4, 9 and 14) Share capital Ordinary shares Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity Total equity TOTAL LIABILITIES AND EQUITY		2025 Amount % $ 340,725 4 880,841 9 137,439 1 526,080 5 276,852 3 2,161,937 22 3,842,302 39 3,440,577 35 374,220 4 2,191 - 51,062 - 7,710,352 78 $ 9,872,289 100 $ 100,000 1 239,217 2 246,194 2 911,013 9 156,782 2 96,062 1 270,000 3 49,553 1 2,068,821 21 1,663,740 17 60,582 1 282,374 3 22,500 - 2,029,196 21 4,098,017 42 2,671,290 27 1,190,107 12 571,502 6 - - 1,389,149 14 1,960,651 20 (47,776) (1) 5,774,272 58 $ 9,872,289 100		2024
				Amount % $ 295,757 3 884,662 10 228,751 2 398,769 4 188,438 2 1,996,377 21 3,811,683 41 3,285,972 35 145,568 2 1,283 - 101,175 1 7,345,681 79 $ 9,342,058 100 $ 199,000 2 313,960 3 275,462 3 848,433 9 109,668 1 55,855 1 - - 37,942 1 1,840,320 20 1,565,230 17 59,831 - 93,273 1 19,870 - 1,738,204 18 3,578,524 38 2,671,290 29 1,214,116 13 496,770 5 139,362 2 1,195,854 13 1,831,986 20 46,142 - 5,763,534 62 $ 9,342,058 100

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

(With Deloitte & Touche auditors’ report dated February 24, 2026)

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YUEN FOONG YU CONSUMER PRODUCTS CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

NET SALES (Notes 4, 15 and 21) COST OF GOODS SOLD (Notes 4, 8, 11, 13, 16 and 21) GROSS PROFIT OPERATING EXPENSES (Notes 4, 11, 13, 16 and 21) Selling and marketing General and administrative Research and development Total operating expenses PROFIT FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES Finance costs (Notes 4 and 16) Share of profit (loss) of subsidiaries (Notes 4 and 9) Interest income (Note 4) Loss on disposal of property, plant and equipment (Note 4) Other gains and losses (Notes 10, 16 and 22) Total non-operating income and expenses PROFIT BEFORE INCOME TAX INCOME TAX EXPENSE (Notes 4 and 17) NET PROFIT FOR THE YEAR OTHER COMPREHENSIVE INCOME (LOSS) Items that will not be reclassified subsequently to profit or loss: Remeasurement of defined benefit plans (Notes 4 and 13) Tax effect of items that will not be reclassified (Notes 4 and 17)		2025 Amount % $ 7,482,588 100 (5,341,344) (72) 2,141,244 28 (944,764) (13) (301,039) (4) (34,924) - (1,280,727) (17) 860,517 11 (35,444) - 169,510 2 4,746 - (1,246) - (14,566) - 123,000 2 983,517 13 (174,795) (2) 808,722 11 1,402 - (280) -		2024
				Amount % $ 7,362,950 100 (5,381,399) (73) 1,981,551 27 (847,559) (12) (272,288) (4) (34,074) - (1,153,921) (16) 827,630 11 (22,789) - 122,782 2 4,979 - (25,078) (1) (9,327) - 70,567 1 898,197 12 (155,084) (2) 743,113 10 5,252 - (1,050) - (Continued)

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YUEN FOONG YU CONSUMER PRODUCTS CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

Items that may be reclassified subsequently to profit or loss: Share of the other comprehensive income (loss) of subsidiaries Other comprehensive income (loss) for the year, net of income tax TOTAL COMPREHENSIVE INCOME FOR THE YEAR EARNINGS PER SHARE (Note 18) Basic Diluted		2025 Amount % $ (93,918) (1) (92,796) (1) $ 715,926 10 $ 3.03 $ 3.02		2024
				Amount % $ 185,504 3 189,706 3 $ 932,819 13 $ 2.78 $ 2.78
		$		$

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

(With Deloitte & Touche auditors’ report dated February 24, 2026)

(Concluded)

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YUEN FOONG YU CONSUMER PRODUCTS CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars)

BALANCE AT JANUARY 1, 2024 Appropriation of 2023 earnings Legal reserve Special reserve Cash dividends distributed by the Company Net profit for the year ended December 31, 2024 Other comprehensive income for the year ended December 31, 2024 Total comprehensive income for the year ended December 31, 2024 BALANCE AT DECEMBER 31, 2024 Appropriation of 2024 earnings Legal reserve Reversed special reserve Cash dividends distributed by the Company Net profit for the year ended December 31, 2025 Other comprehensive income (loss) for the year ended December 31, 2025 Total comprehensive income (loss) for the year ended December 31, 2025 Differences between equity purchase price and carrying amount from actual acquisition of equity in subsidiary BALANCE AT DECEMBER 31, 2025		**Share Capital **	(Note 14) Amount Capital Surplus (Note 14) $ 2,671,290 $ 1,214,116 - - - - - - - - - - - - 2,671,290 1,214,116 - - - - - - - - - - - - - (24,009) $ 2,671,290 $ 1,190,107	Retained Earnings (Note 14)	Total $ 1,886,058 - - (801,387) 743,113 4,202 747,315 1,831,986 - - (681,179) 808,722 1,122 809,844 - $ 1,960,651	Other Equity Exchange Differences on Translation of Foreign Financial Statements (Note 4) $ (139,362) - - - - 185,504 185,504 46,142 - - - - (93,918) (93,918) - $ (47,776)	Total Equity $ 5,632,102 - - (801,387) 743,113 189,706 932,819 5,763,534 - - (681,179) 808,722 (92,796) 715,926 (24,009) $ 5,774,272
		Shares (In Thousands) 267,129 - - - - - - 267,129 - - - - - - - 267,129		Legal Reserve Special Reserve Unappropriated Earnings $ 400,456 $ 102,683 $ 1,382,919 96,314 - (96,314) - 36,679 (36,679) - - (801,387) - - 743,113 - - 4,202 - - 747,315 496,770 139,362 1,195,854 74,732 - (74,732) - (139,362) 139,362 - - (681,179) - - 808,722 - - 1,122 - - 809,844 - - - $ 571,502 $ - $ 1,389,149

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

(With Deloitte & Touche auditors’ report dated February 24, 2026)

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YUEN FOONG YU CONSUMER PRODUCTS CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Profit before income tax Adjustments for: Depreciation expense Expected credit loss recognized (reversed) Finance costs Interest income Share of loss (profit) of subsidiaries Loss on disposal of property, plant and equipment Write-downs (reversal of write-downs) of inventories Unrealized loss on foreign currency exchange Gain from lease modification Loss from disaster Changes in operating assets and liabilities Notes and accounts receivable Accounts receivable from related parties Inventories Other current assets Net defined benefit assets Notes and accounts payable Accounts payable to related parties Other payables Other current liabilities Cash generated from operations Interest received Dividends received Interest paid Income tax paid Net cash generated from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Net cash outflow from acquisition of subsidiary under common control Payments for property, plant and equipment Proceeds from disposal of property, plant and equipment Increase in other non-current assets Net cash used in investing activities	2025 $ 983,517 333,726 (1) 35,444 (4,746) (169,510) 1,246 4,543 87 (11) - 3,792 91,314 (131,854) (93,341) (2,355) (74,719) (29,268) 72,896 14,240 1,035,000 4,826 93,680 (35,132) (128,118) 970,256 (73,200) (369,507) 4,219 (6,240) (444,728)	2024 $ 898,197 289,833 32 22,789 (4,979) (122,782) 25,078 (418) 70 - 16,906 (68,127) (80,152) (12,817) (53,542) (2,200) 15,319 39,416 49,217 7,158 1,018,998 4,915 62,955 (22,218) (196,930) 867,720 - (1,105,335) 2,612 (2,784) (1,105,507) (Continued)

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YUEN FOONG YU CONSUMER PRODUCTS CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars)

CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from (repayments of) short-term borrowings Proceeds from long-term borrowings Repayment of the principal portion of lease liabilities Distribution of cash dividends Net cash (used in) generated from financing activities NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	2025 $ (99,000) 368,510 (68,891) (681,179) (480,560) 44,968 295,757 $ 340,725	2024 $ 199,000 804,900 (56,722) (801,387) 145,791 (91,996) 387,753 $ 295,757

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

(With Deloitte & Touche auditors’ report dated February 24, 2026)

(Concluded)

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NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

YUEN FOONG YU CONSUMER PRODUCTS CO., LTD.

1. GENERAL INFORMATION

Yuen Foong Yu Consumer Products Co., Ltd. (the “Company”), formerly known as Laiya Co., Ltd., was established and invested by YFY Inc. in October 1986. YFY Inc. held 59.15% of the Company’s shares as of December 31, 2025. The Company was renamed Yuen Foong Yu Consumer Products Co., Ltd. in April 2006. In line with YFY Inc.’s operating strategy to carry out integration, the Company acquired assets, liabilities and business of the household products division that was split from YFY Inc., in accordance with the Business Mergers and Acquisitions Act in October 2007. The Company’s main business items are paper products, paper processed products and household cleaning supplies. The Company’s shares have been listed on the Taiwan Stock Exchange (TWSE) since September 2021.

The parent company only financial statements are presented in the Company’s functional currency, the New Taiwan dollar.

2. APPROVAL OF FINANCIAL STATEMENTS

The parent company only financial statements were approved by the Company’s board of directors on February 24, 2026.

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

• a. Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the “IFRS Accounting Standards”) endorsed and issued into effect by the Financial Supervisory Commission (FSC)

The initial application of the IFRS Accounting Standards endorsed and issued into effect by the FSC did not have material impact on the Company’s accounting policies.

• b. The IFRS Accounting Standards endorsed by the FSC for application starting from 2026

New, Amended and Revised Standards and Interpretations Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity” Annual Improvements to IFRS Accounting Standards - Volume 11 IFRS 17 “Insurance Contracts” (including the 2020 and 2021 amendments to IFRS 17)	Effective Date **Announced by IASB **
	January 1, 2026 January 1, 2026 January 1, 2026 January 1, 2023

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• c. The IFRS Accounting Standards issued by International Accounting Standards Board (IASB), but not yet endorsed and issued into effect by the FSC

New, Amended and Revised Standards and Interpretations

Effective Date Announced by IASB (Note 1)

Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets To be determined by IASB between an Investor and its Associate or Joint Venture” IFRS 18 “Presentation and Disclosure in Financial Statements” January 1, 2027 (Note 2) IFRS 19 “Subsidiaries without Public Accountability: January 1, 2027 Disclosures”(including the 2025 amendments to IFRS 19) Amendments to IAS 21 “Translation to a Hyperinflationary January 1, 2027 Presentation Currency”

• Note 1: Unless stated otherwise, the above IFRS Accounting Standards are effective for annual reporting periods beginning on or after their respective effective dates.

• Note 2: On September 25, 2025, the FSC announced that IFRS 18 will take effect starting from January 1, 2028. Domestic entities could elect to apply IFRS 18 for an earlier period after the endorsement of IFRS 18 by the FSC.

IFRS 18 “Presentation and Disclosure in Financial Statements” and consequential amendments

IFRS 18 will supersede IAS 1 “Presentation of Financial Statements”. The main changes comprise:

• To classify items of income and expenses presented in the statement of profit or loss into the operating, investing, financing, income taxes and discontinued operations categories, the Company shall assess whether it has specified main business activities of investing in particular types of assets and providing financing to customers.

• The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing and income taxes and profit or loss.

• Provides guidance to enhance the requirements of aggregation and disaggregation: The Company shall identify the assets, liabilities, equity, income, expenses and cash flows that arise from individual transactions or other events and shall classify and aggregate them into groups based on shared characteristics, so as to result in the presentation in the primary financial statements of line items that have at least one similar characteristic. The Company shall disaggregate items with dissimilar characteristics in the primary financial statements and in the notes. The Company labels items as “other” only if it cannot find a more informative label.

• Disclosures on Management-defined Performance Measures (MPMs): When in public communications outside financial statements and communicating to users of financial statements management’s view of an aspect of the financial performance of the Company as a whole, the Company shall disclose related information about its MPMs in a single note to the financial statements, including the description of such measures, calculations, reconciliations to the subtotal or total specified by IFRS Accounting Standards and the income tax and non-controlling interests effects of related reconciliation items.

In addition, the following consequential amendments have been made to IAS 7 “Statement of Cash Flows”:

• The Company shall use operating profit or loss as the starting point when presenting cash flows from operating activities under the indirect method.

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• Interest and dividends received by the Company shall be classified as investing activities, while interest and dividends paid shall be classified as financing activities. However, if, after assessment, the Company has a specific main operating activity, it shall determine how to classify dividends received, interest received and interest paid in the statement of cash flows by referring to how it classifies dividend income, interest income and interest expense in the statement of profit or loss. The total of each of these cash flows shall be classified in a single category in the statement of cash flows.

Except for the above impact, as of the date the parent company only financial statements were authorized for issue, the Company is continuously assessing the impacts that the amended standards and interpretations may have on the Company’s financial position and financial performance and will disclose the relevant impacts when the assessment is completed.

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

• a. Statement of compliance

The parent company only financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IFRSs as endorsed and issued into effect by the FSC.

• b. Basis of preparation

The parent company only financial statements have been prepared on the historical cost basis except for the net defined benefit liabilities which are measured at the present value of the defined benefit obligation less the fair value of plan assets (liabilities).

Historical cost is generally based on the fair value of the consideration given in exchange for the assets.

When preparing these parent company only financial statements, the Company used the equity method to account for its investments in subsidiaries. In order for the amounts of the net profit for the year, other comprehensive income (loss) for the year and total equity in the parent company only financial statements to be the same as the amounts attributable to the owners of the Company in its consolidated financial statements, adjustments arising from the differences in accounting treatments between the parent company only basis and the consolidated basis were made to investments accounted for using the equity method, the share of profit or loss of subsidiaries, the share of other comprehensive income (loss) of subsidiaries and the related equity items.

• c. Classification of current and non-current assets and liabilities

Current assets include:

• 1) Assets held primarily for the purpose of trading;

• 2) Assets expected to be realized within 12 months after the reporting period; and

• 3) Cash and cash equivalents unless the asset is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.

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Current liabilities include:

• 1) Liabilities held primarily for the purpose of trading;

• 2) Liabilities due to be settled within 12 months after the reporting period, even if an agreement to refinance, or to reschedule payments, on a long-term basis is completed after the reporting period and before the financial statements are authorized for issue; and

• 3) Liabilities for which the Company does not have an unconditional right at the end of the reporting period to defer settlement for at least 12 months after the reporting period.

Assets and liabilities that are not classified as current are classified as non-current.

• d. Foreign currencies

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

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

Non-monetary items measured at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Exchange differences arising on the retranslation of non-monetary items are included in profit or loss for the period except for exchange differences arising from the retranslation of non-monetary items in respect of which gains and losses are recognized directly in other comprehensive income, in which case, the exchange differences are also recognized directly in other comprehensive income.

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

For the purposes of presenting the parent company only financial statements, the assets and liabilities of the Company’s foreign operations (including subsidiaries and associates in other countries or those that use currencies different from the currency of the Company) are translated into New Taiwan dollars using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period. Exchange differences arising are recognized in other comprehensive income attributed to the owners of the Company and non-controlling interests as appropriate.

On the disposal of a foreign operation (i.e. a disposal of the Company’s entire interest in a foreign operation, or a disposal involving loss of control over a subsidiary that includes a foreign operation, or a partial disposal of an interest in a joint arrangement or an associate that includes a foreign operation of which the retained interest becomes a financial asset), all of the exchange differences accumulated in equity in respect of that operation attributable to the owners of the Company are reclassified to profit or loss.

In relation to a partial disposal of a subsidiary that does not result in the Company losing control over the subsidiary, the proportionate share of accumulated exchange differences is re-attributed to non-controlling interests of the subsidiary and is not recognized in profit or loss. For all other partial disposals, the proportionate share of the accumulated exchange differences recognized in other comprehensive income is reclassified to profit or loss.

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e. Inventories

Inventories are stated at the lower of cost or net realizable value. Inventory write-downs are made by item, except where it may be appropriate to group similar or related items. The net realizable value is the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. Inventories are recorded at the weighted-average cost on the balance sheet date.

• f. Investments in subsidiaries

The Company uses the equity method to account for its investments in subsidiaries.

A subsidiary is an entity that is controlled by the Company.

Under the equity method, an investment in a subsidiary is initially recognized at cost and adjusted thereafter to recognize the Company’s share of the profit or loss and other comprehensive income of the subsidiary. The Company also recognizes the changes in the Company’s share of equity of subsidiaries.

Changes in the Company’s ownership interest in a subsidiary that do not result in the Company losing control of the subsidiary are equity transactions. The Company recognizes directly in equity any difference between the carrying amount of the investment and the fair value of the consideration paid or received.

When the Company’s share of losses of a subsidiary exceeds its interest in that subsidiary (which includes any carrying amount of the investment accounted for using the equity method and long-term interests that, in substance, form part of the Company’s net investment in the subsidiary), the Company continues to recognize its share of further losses.

Any excess of acquisition cost over the Company’s share of the net fair value of the identifiable assets and liabilities of a subsidiary at the acquisition date is recognized as goodwill, which is included within the carrying amount of the investment and is not amortized. Any excess of the Company’s share of the net fair value of the identifiable assets and liabilities over the acquisition cost is recognized immediately in profit or loss.

The Company assesses its investment for any impairment by comparing the estimated recoverable amount with the carrying amount based on the investee’s financial statements as a whole. If the recoverable amount of the investment subsequently increases, the Company will recognize a reversal of the impairment loss; the adjusted post-reversal carrying amount should not exceed the carrying amount that would have been recognized (net of amortization) had no impairment loss been recognized in prior years. An impairment loss recognized on goodwill cannot be reversed in a subsequent period.

When the Company loses control of a subsidiary, it recognizes the investment retained in the former subsidiary at its fair value at the date when control is lost. The difference between the fair value of the retained investment plus any consideration received and the carrying amount of the previous investment at the date when control is lost is recognized as a gain or loss in profit or loss. In addition, the Company accounts for all amounts previously recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required if the Company had directly disposed of the related assets or liabilities.

Profits or losses resulting from downstream transactions are eliminated in full only in the parent company’s financial statements. Profits and losses resulting from upstream transactions and transactions between subsidiaries are recognized only in the parent company’s financial statements only to the extent of interests in the subsidiaries that are not related to the Company.

• 15 -

g. Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost less accumulated depreciation and accumulated impairment loss.

Property, plant and equipment in the course of construction are measured at cost less any recognized impairment loss. Cost includes professional fees and borrowing costs eligible for capitalization. Such assets are depreciated and classified to the appropriate categories of property, plant and equipment when completed and ready for their intended use.

Except for freehold land which is not depreciated, the depreciation of property, plant and equipment is recognized using the straight-line method. Each significant part is depreciated separately. The estimated useful lives, residual values and depreciation methods are reviewed at the end of each reporting period, with the effects of any changes in the estimates accounted for on a prospective basis.

On derecognition of an item of property, plant and equipment, the difference between the sales proceeds and the carrying amount of the asset is recognized in profit or loss.

• h. Impairment of property, plant and equipment, and right-of-use assets

At the end of each reporting period, the Company reviews the carrying amounts of its property, plant and equipment, and right-of-use assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Corporate assets are allocated to the individual cash-generating units on a reasonable and consistent allocation basis.

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

When an impairment loss is subsequently reversed, the carrying amount of the asset or cash-generating unit is increased to the revised estimate of its recoverable amount, but only to the extent of the carrying amount that would have been determined had no impairment loss been recognized for the asset or cash-generating unit in prior years. A reversal of an impairment loss is recognized in profit or loss.

i. Financial instruments

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

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss (FVTPL)) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.

1) Financial assets

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

• 16 -

• a) Measurement category

Financial assets held by the Company are classified as financial assets at amortized cost.

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

• i. The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and

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

Subsequent to initial recognition, financial assets at amortized cost, are measured at amortized cost, which equals the gross carrying amount determined using the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

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

• b) Impairment of financial assets

The Company recognizes a loss allowance for expected credit losses (ECLs) on financial assets at amortized cost (including accounts receivable) at the end of each reporting period.

The Company always recognizes lifetime ECLs for accounts receivable. For all other financial instruments, the Company recognizes lifetime ECLs when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on a financial instrument has not increased significantly since initial recognition, the Company measures the loss allowance for that financial instrument at an amount equal to 12-month ECLs.

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

The Company recognizes an impairment gain or loss in profit or loss for all financial instruments with a corresponding adjustment to their carrying amounts through a loss allowance account.

• c) Derecognition of financial assets

The Company derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss.

• 17 -

2) Equity instruments

Equity instruments issued by the Company are classified as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Equity instruments issued by the Company are recognized at the proceeds received, net of direct issue costs.

The repurchase of the Company’s own equity instruments is recognized in and deducted directly from equity. No gain or loss is recognized in profit or loss on the purchase, sale, issuance or cancellation of the Company’s own equity instruments.

3) Financial liabilities

• a) Subsequent measurement

All the financial liabilities are measured at amortized cost using the effective interest method.

• b) Derecognition of financial liabilities

The difference between the carrying amount of the financial liability derecognized and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

j. Carbon fee provision

In accordance with the Regulations Governing the Collection of Carbon Fees and related regulations of the ROC, the carbon fee provision is recognized and measured on the basis of the best estimate of the expenditure required to settle the obligation for the current year.

k. Revenue recognition

The Company identifies contracts with customers and recognizes revenue when performance obligations are satisfied.

Revenue from the sale of goods is recognized when the goods are delivered to the customer’s specific location and the performance obligation is satisfied because it is the time when customers have obtained control of the promised goods.

Revenue from the sale of goods is measured at the fair value of the consideration received or receivable and reduced for estimated customer returns, rebates and other similar allowances. Estimated sales returns and allowances is generally made and adjusted based on historical experience and the consideration of varying contractual terms to recognize refund liabilities.

Due to the short-term nature of the receivables from the sale of goods with the immaterial discounted effect, the Company measures them at their original invoice amounts without discounting.

l. Leases

At the inception of a contract, the Company assesses whether the contract is, or contains, a lease.

The Company recognizes right-of-use assets and lease liabilities for all leases at the commencement date of a lease, except for short-term leases and low-value asset leases accounted for applying a recognition exemption where lease payments are recognized as expenses on a straight-line basis over the lease terms.

• 18 -

Right-of-use assets are initially measured at cost (the initial measurement of lease liabilities), and less any lease incentives received. Right-of-use assets are subsequently measured at cost less accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are presented on a separate line in the balance sheets.

Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms.

Lease liabilities are initially measured at the present value of the lease payments (fixed payments). The lease payments are discounted using the interest rate implicit in a lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses the lessee’s incremental borrowing rate.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in future lease payments resulting from a change in a lease term, the Company remeasures the lease liability with a corresponding adjustment to the right-of-use assets. However, if the carrying amount of a right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. Lease liabilities are presented on a separate line in the balance sheets.

Variable lease payments that do not depend on an index or a rate are recognized as expenses in the periods in which they are incurred.

m. Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

Other than that which is stated above, all other borrowing costs are recognized in profit or loss in the period in which they are incurred.

n. Employee benefits

1) Short-term employee benefits

Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for services rendered by employees.

2) Retirement benefits

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

Defined benefit costs (including service cost, net interest and remeasurement) under the defined benefit retirement benefit plans are determined using the projected unit credit method. Service cost (including current service cost) and net interest on the net defined benefit liability (asset) are recognized as employee benefits expense in the period they occur. Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling, and the return on plan assets (excluding interest), is recognized in other comprehensive income in the period in which it occurs. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.

Net defined benefit liabilities (assets) represent the actual deficit (surplus) in the Company’s defined benefit plan. Any surplus resulting from this calculation is limited to the present value of any refunds from the plans or reductions in future contributions to the plans.

• 19 -

o. Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

1) Current tax

Income tax payable is based on taxable profit for the year determined according to the applicable tax laws of each tax jurisdiction.

According to the Income Tax Act in the ROC, an additional tax on unappropriated earnings is provided for as income tax in the year the shareholders approve to retain earnings.

Adjustments of prior years’ tax liabilities are added to or deducted from the current year’s tax provision.

• 2) Deferred tax

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

Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences and unused tax credits for investments to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

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

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. A previously unrecognized deferred tax asset is also reviewed at the end of each reporting period and recognized to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

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

3) Current and deferred tax

Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income; in which case, the current and deferred tax are also recognized in other comprehensive income.

• 20 -

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION AND UNCERTAINTY

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

Estimated Impairment of Receivables

The provision for impairment of receivables is based on assumptions on probability of default and loss given default ratio. The Company uses judgment in making these assumptions and in selecting the inputs to the impairment calculation, based on the Company’s historical experience, existing market conditions as well as forward looking estimates. Where the actual future cash inflows are less than expected, a material impairment loss may arise.

6. CASH AND CASH EQUIVALENTS

Cash on hand Checking accounts and demand deposits Cash equivalents (investments with original maturities of three months or less) Repurchase agreements collateralized by bonds		December 31	December 31
		2025 $ 251 110,474 230,000 $ 340,725	2024 $ 233 60,345 235,179 $ 295,757

7. NOTES RECEIVABLE AND ACCOUNTS RECEIVABLE

Notes receivable - operating Accounts receivable - operating Less: Allowance for impairment loss		**December 31 **	**December 31 **
		2025 $ 10,860 870,012 (31) $ 880,841	2024 $ 13,240 871,454 (32) $ 884,662

The Company’s customers are a large number of unrelated customers that did not create concentration of credit risk.

For the accounts receivable that were past due at the end of the reporting period, the Company did not recognize an allowance for impairment loss because there was no significant change in credit quality and the amounts were still considered recoverable. The Company held adequate collaterals or other credit enhancements for these receivables.

• 21 -

The Company applies the simplified approach to providing for expected credit losses, which permits the use of lifetime expected loss provision for all trade receivables. The expected credit losses on trade receivables are estimated using a provision matrix by reference to past default records of the debtor and an analysis of the debtor’s current financial position, adjusted for general economic conditions of the industry in which the debtor operates and an assessment of both the current as well as the GDP forecasts and industry outlook. As the Company’s historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished according to the Company’s different customer base.

The Company writes off a trade receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery. For trade receivables that have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.

The following table details the loss allowance of trade receivables based on the Company’s provision matrix:

December 31, 2025

Not Past Due Up to 90 Days 91 Days to 180 Days 181 Days to 360 Days Over 361 Days Gross carrying amount $ 880,577 $ 266 $ - $ - $ 29 Loss allowance (Lifetime ECLs) (2) - - - (29) $ 880,575 $ 266 $ - $ - $ - December 31, 2024 Not Past Due Up to 90 Days 91 Days to 180 Days 181 Days to 360 Days Over 361 Days Gross carrying amount $ 883,711 $ 954 $ - $ 29 $ - Loss allowance (Lifetime ECLs) (2) (1) - (29) - $ 883,709 $ 953 $ - $ - $ -

Total $ 880,872 (31) $ 880,841 Total $ 884,694 (32) $ 884,662

The movements of the loss allowance of trade receivables were as follows:

Balance at January 1 Net remeasurement of loss allowance (gain on reversal) Balance at December 31	2025 $ 32 (1) $ 31	2024 $ - 32
		$ 32

• 22 -

8. INVENTORIES

Materials Work in process Finished and purchased goods		December 31	December 31
		2025 $ 73,302 156,034 296,744 $ 526,080	2024 $ 102,430 67,585 228,754 $ 398,769

Write-down of inventories to net realizable value and reversal of write-down of inventories resulting from the increase in net realizable value were included in the cost of revenue, which were as follows. Due to the disposal of inventories which were written down, the net realizable value of inventory increased.

Net reversal of write-down of inventories (inventory write-down losses)		December	31
		2025 $ (4,543)	2024 $ 418

9. INVESTMENTS IN SUBSIDIARIES ACCOUNTED FOR USING THE EQUITY METHOD

Non-listed (public) companies Yuen Foong Yu Consumer Products Investment Limited Ever Growing Agriculture Bio-tech Co., Ltd. Yuen Foong Shop Co., Ltd. YFY Consumer Products, Co.		December 31	December 31
		2025 $ 3,390,001 319,168 132,794 339 $ 3,842,302	2024 $ 3,422,493 269,577 119,613 - $ 3,811,683

The Company’s proportion of ownership and voting rights of its subsidiaries as of the balance sheet date were as follows:

Name of Subsidiaries Yuen Foong Yu Consumer Products Investment Limited Ever Growing Agriculture Bio-tech Co., Ltd. (Note) Yuen Foong Shop Co., Ltd. YFY Consumer Products, Co.	Proportion of Ownership and Voting Rights
	**December 31 **
	2025 2024 100% 100% 100% 85% 100% 100% 100% 100%

Note: On March 13, 2025, the Company’s board of directors resolved to acquire 15% equity of Ever Growing Agriculture Bio-tech Co., Ltd. from a related party, Chen Yu Co., Ltd. for $73,200 thousand. The transaction was completed in the first quarter of 2025. The difference of $24,009 thousand between the acquisition price and the book value was adjusted to the capital surplus.

• 23 -

10. PROPERTY, PLANT AND EQUIPMENT

Cost Balance at January 1, 2025 Additions Disposals Reclassifications Balance at December 31, 2025 Accumulated depreciation Balance at January 1, 2025 Depreciation expenses Disposals Balance at December 31, 2025 Carrying amounts at January 1, 2025 Carrying amounts at December 31, 2025 Cost Balance at January 1, 2024 Additions Disposals Loss from disaster (Note) Balance at December 31, 2024 Accumulated depreciation Balance at January 1, 2024 Depreciation expenses Disposals Loss from disaster (Note) Balance at December 31, 2024 Carrying amounts at January 1, 2024 Carrying amounts at December 31, 2024	Freehold Land $ 1,185,747 - - - $ 1,185,747 $ - - - $ - $ 1,185,747 $ 1,185,747 $ 675,822 509,925 - - $ 1,185,747 $ - - - - $ - $ 675,822 $ 1,185,747	Buildings $ 767,314 17,603 (615 ) 40,689 $ 824,991 $ 380,876 29,976 (615) $ 410,237 $ 386,438 $ 414,754 $ 733,541 35,803 - (2,030) $ 767,314 $ 352,606 28,337 - (67) $ 380,876 $ 380,935 $ 386,438	Machinery $ 2,534,204 215,849 (51,197 ) 250,385 $ 2,949,241 $ 1,308,289 175,714 (46,341) $ 1,437,662 $ 1,225,915 $ 1,511,579 $ 2,552,730 57,931 (76,457 ) - $ 2,534,204 $ 1,208,183 152,896 (52,790 ) - $ 1,308,289 $ 1,344,547 $ 1,225,915	Electric Equipment $ 270,564 83,402 (2,211 ) 6,227 $ 357,982 $ 124,810 21,563 (1,727) $ 144,646 $ 145,754 $ 213,336 $ 294,676 7,415 (7,119 ) (24,408) $ 270,564 $ 119,589 19,182 (4,236 ) (9,725) $ 124,810 $ 175,087 $ 145,754	Tools $ 183,369 12,013 (7,645 ) 6,772 $ 194,509 $ 119,076 21,468 (7,520) $ 133,024 $ 64,293 $ 61,485 $ 175,174 27,020 (18,825 ) - $ 183,369 $ 115,739 21,022 (17,685 ) - $ 119,076 $ 59,435 $ 64,293	Miscellaneous Equipment $ 233,027 32,801 (2,125 ) - $ 263,703 $ 196,835 15,317 (2,125) $ 210,027 $ 36,192 $ 53,676 $ 222,182 23,950 (3,594 ) (9,511) $ 233,027 $ 198,404 11,276 (3,594 ) (9,251) $ 196,835 $ 23,778 $ 36,192	Property in Construction $ 241,633 62,440 - (304,073) $ - $ - - - $ - $ 241,633 $ - $ - 241,633 - - $ 241,633 $ - - - - $ - $ - $ 241,633	Total $ 5,415,858 424,108 (63,793 ) - $ 5,776,173 $ 2,129,886 264,038 (58,328) $ 2,335,596 $ 3,285,972 $ 3,440,577 $ 4,654,125 903,677 (105,995 ) (35,949) $ 5,415,858 $ 1,994,521 232,713 (78,305 ) (19,043) $ 2,129,886 $ 2,659,604 $ 3,285,972

Note: The loss from disaster of NT$16,906 thousand is accounted as other expenses.

The above items of property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives as follows:

Buildings 3-55 years Machinery 3-20 years Electric equipment 3-20 years Tools 3-10 years Miscellaneous equipment 3-10 years

According to the operational requirements, the Company’s land which land parcel number are 109, 125, 540, 541 and 542 in Taichung City were bought in 2024, because the purchased agricultural land could not be transferred in the name of the Company, it was temporarily registered in the name of the registrant, with whom a contract of borrowing other’s name for real estate registration was signed to clearly define the rights and obligations of both parties, declare the ownership of agricultural land is belongs to the Company. The land ownership certificate is held by the Company and mortgage these agricultural lands to the Company when registered the property rights.

• 24 -

11. LEASE ARRANGEMENTS

a. Right-of-use assets

Carrying amounts Buildings Others Additions to right-of-use assets Depreciation charge for right-of-use assets Buildings Others		**December 31 **	**December 31 **
	2025 $ 359,463 14,757 $ 374,220 For the Year Ended		2024 $ 127,687 17,881 $ 145,568 December 31
		2025 $ 301,438 $ 62,633 7,055 $ 69,688	2024 $ 21,556 $ 50,430 6,690 $ 57,120

Except for the aforementioned additions and recognized depreciation, the Company did not have significant sublease or impairment of right-of-use assets during the years ended December 31, 2025 and 2024.

b. Lease liabilities

Carrying amounts Current Non-current Range of discount rates for lease liabilities was as follows:		**December 31 **	**December 31 **
		2025 $ 96,062 $ 282,374	2024 $ 55,855 $ 93,273

Buildings Others	**December 31 **
	2025 2024 0.86%-1.53% 0.86%-1.52% 0.86%-1.53% 0.86%-1.52%

c. Material lease-in activities and terms

The Company leases certain equipment and buildings for the use of operating activities with lease terms of 2 to 12 years.

• 25 -

d. Other lease information

Expenses relating to short-term leases and low-value asset leases Total cash outflow for leases	For the Year Ended	For the Year Ended	December 31
		2025 $ 75,654 $ 146,946	2024 $ 51,142 $ 109,600

12. BORROWINGS

a. Short-term borrowings

Bank credit loans Annual interest rates b. Long-term borrowings Bank credit loans Less: Current portion Interest rates of long-term borrowings			December 31	December 31
			2025 2024 $ 100,000 $ 199,000 1.82% 1.83% December 31
		2025 $ 1,933,740 (270,000) $ 1,663,740 1.40%-1.83%		2024 $ 1,565,230 - $ 1,565,230 1.40%-1.86%

13. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

The Company adopted a pension plan under the Labor Pension Act (LPA), which is a state-managed defined contribution plan. Under the LPA, an entity makes monthly contributions to employees’ individual pension accounts at 6% of monthly salaries and wages.

b. Defined benefit plans

The defined benefit plan adopted by the Company in accordance with the Labor Standards Act is operated by the government of the Republic of China. Pension benefits are calculated on the basis of the length of service and average monthly salary of the six months before retirement. The Company contributes 4% of total monthly salaries and wages to a pension fund administered by the pension fund monitoring committee. Pension contributions are deposited in the Bank of Taiwan in the committee’s name. Before the end of each year, the Company assesses the balance in the pension fund. If the amount of the balance in the pension fund is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Company is required to fund the difference in one appropriation that should be made before the end of March of the next year. The pension fund is managed by the Bureau of Labor Funds, Ministry of Labor (the “Bureau”); the Company has no right to influence the investment policy and strategy.

• 26 -

As a result of the division of employees transferred from YFY Inc. to the Company, their seniority is calculated by consolidation. Employee pensions are paid by each company’s special employee retirement reserve account based on the proportion of their years of service in each company.

The amounts included in the balance sheets in respect of the Company’s defined benefit plans were as follows:

Present value of defined benefit obligation Fair value of plan assets Net defined benefit assets		December 31	December 31
		2025 $ 84,487 (101,733) $ (17,246)	2024 $ 96,825 (110,314) $ (13,489)

Movements in net defined benefit (assets) liabilities were as follows:

	Present Value of	Present Value of
	the Defined				Net	Defined
		Benefit	Fair Value of		Benefit (Assets)
	Obligation		the Plan Assets		Liabilities
Balance at January 1, 2024	$	90,610	$ (96,647)		$	(6,037)
Service cost
Current service cost		2,252		-		2,252
Net interest expense (income)		1,288		(1,395)		(107)
Recognized in profit or loss		3,540		(1,395)		2,145
Remeasurement
Return on plan assets (excluding amounts
included in net interest)		-		(8,681)		(8,681)
Actuarial loss - actuarial assumptions
adjustments		56		-		56
Actuarial loss - experience adjustments		3,373		-		3,373
Recognized in other comprehensive income		3,429		(8,681)		(5,252)
Benefits paid		(754)		754		-
Contributions from the employer		-		(4,345)		(4,345)
Balance at December 31, 2024	$	96,825	$ (110,314)		$	(13,489)
Balance at January 1, 2025	$	96,825	$ (110,314)		$	(13,489)
Service cost
Current service cost		2,271		-		2,271
Net interest expense (income)		1,372		(1,590)		(218)
Recognized in profit or loss		3,643		(1,590)		2,053
Remeasurement
Return on plan assets (excluding amounts
included in net interest)		-		(7,672)		(7,672)
Actuarial loss - experience adjustments		6,270		-		6,270
Recognized in other comprehensive income		6,270		(7,672)		(1,402)
Benefits paid		(22,251)		22,251		-
Contributions from the employer		-		(4,408)		(4,408)
Balance at December 31, 2025	$	84,487	$ (101,733)		$	(17,246)

• 27 -

Through the defined benefit plans under the Labor Standards Act, the Company is exposed to the following risks:

• 1) Investment risk: The plan assets are invested in domestic and foreign equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the Bureau or under the mandated management. However, in accordance with relevant regulations, the return generated by plan assets should not be below the interest rate for a 2-year time deposit with local banks.

• 2) Interest risk: A decrease in the government and corporate bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the plan’s debt investments.

• 3) Salary risk: The present value of the defined benefit obligation is calculated by reference to the future salaries of plan participants. As such an increase in the salary of the plan participants will increase the present value of the defined benefit obligation.

The actuarial valuations of the present value of the defined benefit obligation were carried out by qualified actuaries. The significant assumptions used for the purposes of the actuarial valuations were as follows:

Discount rate Expected rate of salary increase - less than 16 years Expected rate of salary increase - more than 16 years	December 31
	2025 2024 1.50% 1.50% 1.50% 1.50% 1.00% 1.00%

If possible reasonable changes in each of the significant actuarial assumptions occur and all other assumptions remain constant, the present value of the defined benefit obligation will increase (decrease) as follows:

Discount rate 0.125% increase 0.125% decrease Expected rate of salary increase 0.125% increase 0.125% decrease		December	31
		2025 $ (381) $ 385 $ 386 $ (384)	2024 $ (466) $ 470 $ 472 $ (469)

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

Expected contributions to the plans for the next year Average duration of the defined benefit obligation		December	31
		2025 $ 1,433 4.1 years	2024 $ 2,053 4.3 years

• 28 -

14. EQUITY

a. Ordinary shares

Number of shares authorized (in thousands) Authorized shares Number of shares issued and fully paid (in thousands) Issued shares		**December 31 **	**December 31 **
		2025 350,000 $ 3,500,000 267,129 $ 2,671,290	2024 350,000 $ 3,500,000 267,129 $ 2,671,290

Fully paid ordinary shares, which have a par value of $10, carry one vote per share and a right to receive dividends.

• b. Capital surplus

May be used to offset deficit, distributed as cash dividends, or transferred to share capital Share premium Differences between equity purchase price and carrying amount from actual acquisition or disposal of equity in subsidiary Others		**December 31 **	**December 31 **
		2025 $ 1,054,448 132,472 3,187 $ 1,190,107	2024 $ 1,054,448 156,481 3,187 $ 1,214,116

The amount transferred to share capital limited to a certain percentage of the Company’s capital surplus each year.

c. Retained earnings and dividends policy

Under the dividends policy as set forth in the amended Articles, where the Company made a profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside as legal reserve 10% of the remaining profit, setting aside or reversing a special reserve in accordance with the laws and regulations or in the necessary situation, and then any remaining profit together with any undistributed retained earnings shall be used by the Company’s board of directors as the basis for proposing a distribution plan, which should be resolved in the shareholders’ meeting for distribution of dividends and bonuses to shareholders.

In consideration of the overall environment and the long-term financial planning to achieve sustainable and stable business development, the Company’s dividend policy is mainly based on the future capital budget plan to measure the capital needs of the following year. Every year, no less than 30% of the available profit shall be distributed as shareholder dividends. The distribution of dividends may be in cash or in shares, of which the cash dividends should be no less than 20%. However, when the Company has capital expenditure needs, all the aforementioned dividends will be distributed in the form of share dividends. For the policies on the distribution of compensation of employees and remuneration of directors, refer to compensation of employees and remuneration of directors in Note 16(d).

Appropriation of earnings to the legal reserve shall be made until the legal reserve equals the Company’s paid-in capital. The legal reserve may be used to offset deficit. If the Company has no deficit and the legal reserve has exceeded 25% of the Company’s paid-in capital, the excess may be transferred to capital or distributed in cash.

• 29 -

Items referred to under Rule No. 1090150022 issued by the FSC and in the directive titled “Questions and Answers for Special Reserves Appropriated Following Adoption of IFRS Accounting Standards”, should be appropriated to or reversed from a special reserve by the Company. When the deduction balance of other shareholders’ equity is reversed, the reversed amount may be distributed thereafter.

The appropriations of earnings for 2024 and 2023, which were approved by the shareholders in their meeting on June 25, 2025 and 2024, respectively, were as follows:

Legal reserve Appropriation (reversal) of special reserve Cash dividends Cash dividends per share (NT$)	For the Year Ended	For the Year Ended	December 31
		2024 $ 74,732 $ (139,362) $ 681,179 $ 2.55	2023 $ 96,314 $ 36,679 $ 801,387 $ 3

The appropriations of earnings for 2025, which were approved by the Company’s board of directors on February 24, 2026, were as follows:

	For the Year	For the Year
		Ended
	December 31,
		2025
Legal reserve	$	80,984
Appropriation of special reserve	$	47,776
Cash dividends	$	707,892
Cash dividends per share (NT$)	$	2.65

The appropriations of earnings for 2025 will be approved by the Shareholders Meeting to be held in June 2026. Information about the appropriations of earnings is available at the Market Observation Post System website of the Taiwan Stock Exchange.

15. REVENUE

Revenue from contracts with customers - sale of goods Contract Balances Notes receivable and accounts receivable (including related parties) Contract liabilities - sale of goods (under other current liabilities)	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2025 2024 $ 7,482,588 $ 7,362,950 **December 31 **
		2025 $ 1,018,280 $ 14,895	2024 $ 1,113,413 $ 18,807

• 30 -

The amount of contract liabilities from the beginning of the year recognized as income in the current period is as follows:

Revenue from contracts with customers - sale of goods	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2025 $ 18,655	2024 $ 12,100

For information about notes receivable and accounts receivable, refer to Note 7. The changes in the balance of contract liabilities primarily result from the timing difference between the Company’s satisfaction of performance obligations and the respective customer’s payment.

16. NET PROFIT

a. Finance costs

Interest on bank loans Interest on lease liabilities Less: Capitalization amount of interest	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2025 $ 33,504 2,401 (461) $ 35,444	2024 $ 22,047 1,736 (994) $ 22,789

Information about capitalized interest was as follows:

Capitalization interest rates b. Depreciation Property, plant and equipment Right-of-use assets An analysis of depreciation by function Operating costs Operating expenses	**For the Year Ended December 31 **	**For the Year Ended December 31 **	**For the Year Ended December 31 **
	2025 2024 1.52%-1.56% 1.27%-1.54% **For the Year Ended December 31 **
		2025 $ 264,038 69,688 $ 333,726 $ 264,974 68,752 $ 333,726	2024 $ 232,713 57,120 $ 289,833 $ 232,944 56,889 $ 289,833

• 31 -

c. Employee benefits expenses

Post-employment benefits Defined contribution plans Defined benefit plans (Note 13) Other employee benefits Total employee benefits expense An analysis of employee benefits expense by function Operating costs Operating expenses Non-operating expenses	For the Year Ended	For the Year Ended	December 31
		2025 $ 26,643 2,053 28,696 841,430 $ 870,126 $ 426,932 414,001 29,193 $ 870,126	2024 $ 26,561 2,145 28,706 787,883 $ 816,589 $ 425,585 391,004 - $ 816,589

• d. Compensation of employees and remuneration of directors

The Company accrued compensation of employees and remuneration of directors at rates of no less than 1% and no higher than 2%, respectively, of net profit before income tax, compensation of employees, and remuneration of directors. In compliance with Financial Supervisory Commission Letter No. 1130385442 and Article 14(f) of the Securities and Exchange Act., the shareholders of the Company resolved the amendments to the Company’s Articles at their regular meeting June 25, 2025. The amendments explicitly stipulate that at least 10% of employee compensation shall be allocated to non-executive employees, with the remainder allocated to executive employees. The compensation of employees (including non-executive employees) and remuneration of directors for the years ended December 31, 2025 and 2024, which were approved by the Company’s board of directors on February 24, 2026 and March 13, 2025, respectively, were as follows:

Amount

Compensation of employees Remuneration of directors	For the Year Ended December 31	For the Year Ended December 31
	2025 Cash $ 10,050 10,189	2024
		Cash $ 9,200 9,450

If there is a change in the amounts after the annual parent company only financial statements are authorized for issue, the differences are recorded as a change in the accounting estimate in the following year.

There was no difference between the amounts of the compensation and remuneration approved by the Company’s board of directors on March 13, 2025 and 2024, and the amounts recognized in the financial statements for the years ended December 31, 2024 and 2023.

Information on the compensation of employees and remuneration of directors resolved by the Company’s board of directors is available at the Market Observation Post System website of the Taiwan Stock Exchange.

• 32 -

17. INCOME TAXES

• a. Income tax recognized in profit or loss

The major components of income tax expense were as follows:

Current tax In respect of the current year Adjustments for prior years Deferred tax In respect of the current year Income tax expense recognized in profit or loss	**For the Year Ended **	**For the Year Ended **	**December 31 **
		2025 $ 175,232 - 175,232 (437) $ 174,795	2024 $ 167,283 (12,738) 154,545 539 $ 155,084

A reconciliation of accounting profit and income tax expenses was as follows:

Profit before tax from continuing operations Income tax expense calculated at the statutory rate (20%) Permanent differences Income tax on Controlled Foreign Company Adjustments for prior years Income tax expense recognized in profit or loss	For the Year Ended	For the Year Ended	December 31
		2025 $ 983,517 $ 196,704 (33,902) 11,993 - $ 174,795	2024 $ 898,197 $ 179,640 (24,556) 12,738 (12,738) $ 155,084

In July 2019, the President of our country announced an amendment to the Statute for Industrial Innovation, which specifies that the construction or acquisition of certain assets or technologies from unappropriated earnings in 2018 onwards may be recorded as deductions from the calculation of unappropriated earnings. When the Company calculated the additional levy on unappropriated earnings, the amount of capital expenditures actually invested were deducted from the calculation.

• b. Income tax recognized in other comprehensive income

Deferred tax In respect of the current year Remeasurement on defined benefit plan	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2025 $ (280)	2024 $ (1,050)

• 33 -

c. Deferred tax assets and liabilities

The movements of deferred tax assets and liabilities were as follows:

For the year ended December 31, 2025

Opening Balance Recognized in Profit or Loss Recognized in Other Compre- hensive Income Deferred tax assets Temporary differences Allowance for loss on inventories $ 1,227 $ 909 $ - Others 56 (1) - $ 1,283 $ 908 $ - Deferred tax liabilities Temporary differences Land value increment tax $ 57,133 $ - $ - Net defined benefit assets 2,697 472 280 Others 1 (1) - $ 59,831 $ 471 $ 280 For the year ended December 31, 2024 Opening Balance Recognized in Profit or Loss Recognized in Other Compre- hensive Income Deferred tax assets Temporary differences Allowance for loss on inventories $ 1,311 $ (84) $ - Others 77 (21) - $ 1,388 $ (105) $ - Deferred tax liabilities Temporary differences Land value increment tax $ 57,133 $ - $ - Net defined benefit assets 1,207 440 1,050 Others 7 (6) - $ 58,347 $ 434 $ 1,050

Closing Balance $ 2,136 55 $ 2,191 $ 57,133 3,449 - $ 60,582 Closing Balance $ 1,227 56 $ 1,283 $ 57,133 2,697 1 $ 59,831

Deferred tax assets Temporary differences Allowance for loss on inventories Others Deferred tax liabilities Temporary differences Land value increment tax Net defined benefit assets Others

• 34 -

d. Income tax approved situation

The tax filings of the Company through 2022 have been approved by the tax authorities.

18. EARNINGS PER SHARE

Basic earnings per share (NT$) Diluted earnings per share (NT$)	For	the Year Ended December 31	the Year Ended December 31
		2025 $ 3.03 $ 3.02	2024 $ 2.78 $ 2.78

The earnings and weighted average number of ordinary shares outstanding used in the computation of earnings per share from continuing operations were as follows:

Net profit for the year

Profit for the year attributable to owners of the Company	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2025 $ 808,722	2024 $ 743,113

Weighted average number of ordinary shares outstanding (in thousands of shares)

Weighted average number of ordinary shares used in the computation of basic earnings per share Effect of potentially dilutive ordinary shares: Compensation of employees Weighted average number of ordinary shares used in the computation of diluted earnings per share	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2025 267,129 304 267,433	2024 267,129 275 267,404

The Company may settle compensation paid to employees in cash or shares; therefore, the Company assumes that the entire amount of the compensation will be settled in shares, and the resulting potential shares will be included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.

19. CAPITAL MANAGEMENT

The Company manages its capital to ensure that entities in the Company will be able to continue as going concerns through consideration of the future operational plan, profitability, capital expenditure, operating income and debt repayment when assessing various costs and risks. In order to balance the overall capital and financial structure, the Company may pay dividends, issue new shares, etc.

• 35 -

20. FINANCIAL INSTRUMENTS

a. Fair value of financial instruments

The management of the Company considers that the carrying amounts of financial assets and financial liabilities recognized in the financial statements to approximate their fair values.

• b. Categories of financial instruments

Financial assets Financial assets at amortized cost (1) Financial liabilities Financial liabilities at amortized cost (2)	December 31
	2025 2024 $ 1,398,182 $ 1,439,518 3,452,664 3,221,955

• 1) The balances include financial assets measured at amortized cost, which comprise cash and cash equivalents, notes and accounts receivable, accounts receivable from related parties, other receivables (accounted as other current assets), and refundable deposits (accounted as other current assets and other non-current assets).

• 2) The balances include financial liabilities measured at amortized cost, which comprise short-term borrowings, notes and accounts payable, accounts payable to related parties, other payables, current portion of long-term borrowings, long-term borrowings, long-term payables (accounted as other non-current liabilities) and deposits received (accounted as other non-current liabilities).

• c. Financial risk management objectives and policies

The Company’s main objective of financial risk management is to manage risks related to its operations, including foreign currency risk, interest rate risk, credit risk and liquidity risk. To reduce the potential and detrimental influence of market fluctuations on the Company’s financial performance, the Company endeavors to identify, estimate and hedge the uncertainties of the market.

The Company’s significant financial activity is reviewed and approved by the board of directors in compliance with related regulations and internal control policy, and authority and responsibility are delegated according to the operating procedures. Internal auditors also regularly or irregularly review the compliance of the policy. The Company did not enter into or trade financial instruments for speculative purposes.

1) Market risk

• a) Foreign currency risk

The Company had foreign currency sales and purchases, which exposed the Company to foreign currency risk. The Company follows the movement of foreign exchange rates and adjusts its funding positions in response to exchange rate movements to minimize the effects of these risks.

Sensitivity analysis

The Company is mainly exposed to the USD.

• 36 -

The following table details the Company’s sensitivity to a 5% increase and decrease in the functional currency against the relevant foreign currencies. 5% represents management’s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis included only outstanding foreign currency denominated monetary items and adjusts their translation at the end of the reporting period for a 5% change in foreign currency rates. For a 5% weakening of the New Taiwan dollar against the relevant currency, there would be an equal and opposite impact on pre-tax profit.

Profit or loss at 5% variance USD	**For the Year Ended December 31 **	**For the Year Ended December 31 **	**For the Year Ended December 31 **
		2025 $ (297)	2024 $ (118)

b) Interest rate risk

The carrying amounts of the Company’s financial assets and financial liabilities with exposure to interest rates at the end of the reporting period were as follows:

Fair value interest rate risk Financial assets Financial liabilities Cash flow interest rate risk Financial assets		December 31	December 31
		2025 $ 230,000 $ 2,412,176 $ 109,206	2024 $ 235,179 $ 1,913,358 $ 59,918

Due to the close and long-term relationship with banks, the Company obtained more favorable and flexible interest rates terms from banks. Changes in interest rates do not have a significant impact on the Company.

Sensitivity analysis

For the Company’s floating interest rate financial assets and liabilities, if interest rates had been 0.1% higher/lower and all other variables were held constant, the Company’s pre-tax profit for the years ended December 31, 2025 and 2024 would have increased/decreased as follows:

Increase/(decrease) 2) Credit risk	**For the Year Ended December 31 **
	2025 2024 $ 109 $ 60

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Company. As at the end of the reporting period, the Company’s maximum exposure to credit risk which will cause a financial loss to the Company due to the failure of the counterparty to discharge its obligation is at the level of the carrying amounts of the respective recognized financial assets which comprise receivables from operating activities as stated in the balance sheets.

The Company transacts with a large number of unrelated customers in various industries. The Company continuously evaluates the financial conditions of those customers.

• 37 -

To maintain the quality of the accounts receivable, the Company has developed a credit risk management procedure to reduce the credit risk from specific customers. The credit evaluation of individual customers includes considering factors that will affect its payment ability such as financial condition, past transaction records and current economic conditions. Credit risk of bank deposits, fixed-income investments and other financial instruments with banks is evaluated and monitored by the Company’s finance department. Since the counterparties are creditworthy banks and financial institutions with good credit rating, there was no significant credit risk.

• 3) Liquidity risk

The objective of liquidity risk management is to maintain adequate cash and cash equivalents with high liquidity and sufficient bank facilities required by business operation and to ensure the Company has sufficient financial flexibility.

Unutilized financing facilities		December 31	December 31
		2025 $ 6,542,750	2024 $ 6,681,900

21. TRANSACTIONS WITH RELATED PARTIES

YFY Inc. is the parent company of the Company, which held 59.15% of the ordinary shares of the Company as of December 31, 2025 and 2024.

• a. Related party name and category

Related Party Name YFY Inc. YFY Consumer Products, Co. Ever Growing Agriculture Bio-tech Co., Ltd. Yuen Foong Shop Co., Ltd. Livebricks Inc. Chung Hwa Pulp Corporation China Color Printing Co., Ltd. Fidelis IT Solutions Co., Ltd. Ensilience Co., Ltd. Effion Enertech Co., Ltd. YFY Packaging Inc. YFY Paradigm Investment Co., Ltd. YFY Development Corp. YFY Corporate Advisory & Services Co., Ltd. Shin Foong Specialty and Applied Materials Co., Ltd. Union Paper Corp. Pek Crown Paper Co., Ltd. YFY Jupiter Limited Taiwan Branch (Hong Kong) Sustainable Carbohydrate Innovation Co., Ltd. Genovella Renewables Inc. Fengchuan Green Technology Co., Ltd. Hsinex International Corp. E Ink Holdings Inc. SinoPac Financial Holdings Co., Ltd. SinoPac Securities Corporation

Related Party Category

Parent company Subsidiary Subsidiary Subsidiary Subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Substantive related party Substantive related party Substantive related party Substantive related party (Continued)

• 38 -

Related Party Name

Related Party Category

Yuen Foong Paper Co., Ltd. Bank SinoPac Co., Ltd. YFY Biotech Co., Ltd. Chen Yu Co., Ltd. Hsin Yuan Investment Co., Ltd. Foongtone Technology Co., Ltd. Shen’s Art Printing Co., Ltd. Ho Tien Co., Ltd. Hoi Toy & Play Corporation Hsin-Yi Enterprise Co., Ltd. Hsin Yi Recreation Enterprise Co., Ltd. Hsin-Yi Foundation Taiwan Stock Exchange Corporation Synmax Biochemical Co., Ltd.

Substantive related party Substantive related party Substantive related party Substantive related party Substantive related party Substantive related party Substantive related party Substantive related party Substantive related party Substantive related party Substantive related party Substantive related party Substantive related party Substantive related party (Concluded)

• b. Sales of goods

Related Party Category/Name Subsidiaries Yuen Foong Shop Co., Ltd. Others Substantive related parties Fellow subsidiaries Parent company	**For the Year Ended December 31 **	**For the Year Ended December 31 **	**For the Year Ended December 31 **
		2025 $ 1,169,714 4,070 1,173,784 13,755 5,384 433 $ 1,193,356	2024 $ 1,112,985 6 1,112,991 12,100 4,936 295 $ 1,130,322

For sales of goods to related parties, the prices and terms of receivables approximate those with non-related parties.

c. Purchases of goods

Related Party Category/Name Fellow subsidiaries Chung Hwa Pulp Corporation Others Subsidiaries Ever Growing Agriculture Bio-tech Co., Ltd. Others Substantive related parties	**For the Year Ended December 31 **	**For the Year Ended December 31 **	**For the Year Ended December 31 **
		2025 $ 370,450 63,638 434,088 400,563 1,230 401,793 262 $ 836,143	2024 $ 428,245 61,612 489,857 362,517 - 362,517 240 $ 852,614

For purchases of goods from related parties, the prices and terms of payables approximate those with non-related parties.

• 39 -

• d. Accounts receivable from related parties

Related Party Category/Name Subsidiaries Yuen Foong Shop Co., Ltd. Others Substantive related parties Fellow subsidiaries Parent company		December 31	December 31
		2025 $ 132,130 152 132,282 3,832 1,325 - $ 137,439	2024 $ 224,932 4 224,936 2,511 1,284 20 $ 228,751

The outstanding accounts receivable from related parties are unsecured and no expected credit losses should be recognized after estimating.

• e. Accounts payable to related parties

Related Party Category/Name Subsidiaries Ever Growing Agriculture Bio-tech Co., Ltd. Fellow subsidiaries Chung Hwa Pulp Corporation Others		December 31	December 31
		2025 $ 153,921 68,922 23,351 92,273 $ 246,194	2024 $ 149,820 102,806 22,836 125,642 $ 275,462

The outstanding accounts payable to related parties are unsecured.

• f. Other payables to related parties

Related Party Category Fellow subsidiaries Subsidiaries Substantive related parties		December 31	December 31
		2025 $ 6,648 3,513 1,263 $ 11,424	2024 $ 6,858 164 1,211 $ 8,233

• g. Acquisitions of property, plant and equipment

Related Party Category Fellow subsidiaries	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2025 $ 138	2024 $ 2,625

• 40 -

h. Acquisitions of financial assets

Refer to Notes 9.

• i. Lease arrangements

Lease Paid Substantive related parties Hsin-Yi Enterprise Co., Ltd. Fellow subsidiaries	**For the Year Ended December 31 **	**For the Year Ended December 31 **	**For the Year Ended December 31 **
		2025 $ 8,701 1,314 $ 10,015	2024 $ 8,249 1,314 $ 9,563

The lease period, rent and the payment condition for related parties are approximate those with non-related parties.

• j. Other transactions with related parties

Related Party Category Fellow subsidiaries Subsidiaries Substantive related parties Related Party Category/Name Subsidiaries Yuen Foong Shop Co., Ltd. Others	Miscellaneous Expenses (Accounted for as Operating Costs and Expenses)	Miscellaneous Expenses (Accounted for as Operating Costs and Expenses)	Miscellaneous Expenses (Accounted for as Operating Costs and Expenses)
	**For the Year Ended December 31 **
	2025 2024 $ 20,744 $ 19,050 12,589 9,312 4,728 4,405 $ 38,061 $ 32,767 Other Income (Accounted for as Non-operating Income)
	For the Year Ended December 31
		2025 $ 1,369 47 $ 1,416	2024 $ 1,369 - $ 1,369

Other Receivables from Related Parties (Accounted for as Other	Other Receivables from Related Parties (Accounted for as Other	Other Receivables from Related Parties (Accounted for as Other	Other Receivables from Related Parties (Accounted for as Other	Other Receivables from Related Parties (Accounted for as Other
		Current Assets)
		December 31
Related Party Category		2025		2024
Subsidiaries		$ 25		$ 447

• 41 -

k. Remuneration of key management personnel

Short-term employee benefits Others	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2025 $ 45,151 849 $ 46,000	2024 $ 51,867 927 $ 52,794

The remuneration of directors and key executives as determined by the remuneration committee, was based on the performance of individuals and market trends.

22. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The following information on the foreign currencies other than the functional currencies of the Company and the related exchange rates between the foreign currencies and respective functional currencies. The significant assets and liabilities denominated in foreign currencies were as follows:

Financial assets Monetary items USD Financial liabilities Monetary items USD Financial assets Monetary items USD Financial liabilities Monetary items USD	December 31, 2025
	Foreign Currency Exchange Rate Carrying Amount $ 112 31.43 $ 3,520 301 31.43 9,460 December 31, 2024
	Foreign Currency Exchange Rate Carrying Amount $ 149 32.785 $ 4,885 221 32.785 7,245

The significant realized and unrealized foreign exchange gains (losses) were as follows:

Foreign Currency USD	For the Year Ended 2025 Exchange Rate (Foreign Currency: Functional Currency) Net Foreign Exchange Gains (Losses) 31.43 (USD:NTD) $ 230	For the Year Ended 2024
		Exchange Rate (Foreign Currency: Functional Currency) Net Foreign Exchange Gains (Losses) 32.785 (USD:NTD) $ 67

• 42 -

23. SEPARATELY DISCLOSED ITEMS

Following are the additional disclosures required by the Securities and Futures Bureau for the Company:

• a. Financing provided to others: None;

• b. Endorsements/guarantees provided: None;

• c. Significant marketable securities held: None;

• d. Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital: See Table 1 attached;

• e. Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: See Table 2 attached;

• f. Information on investees: See Table 3 attached;

• g. Information on investments in mainland China:

• 1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the period, repatriations of investment income, and limit on the amount of investment in the mainland China area: See Table 4 attached.

• 2) Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses: None.

  • a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period.

  • b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period.

  • c) The amount of property transactions and the amount of the resultant gains or losses.

  • d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and the purposes.

  • e) The highest balance, the end of period balance, the interest rate range, and total current period interest with respect to financing of funds.

  • f) Other transactions that have a material effect on the profit or loss for the year or on the financial position, such as the rendering or receipt of services.

• 43 -

TABLE 1

YUEN FOONG YU CONSUMER PRODUCTS CO., LTD.

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST $100 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Buyer/Seller	Related Party	Relationship (Note)		Transaction Details	Transaction Details	Transaction Details	Abnormal Transaction	Abnormal Transaction	Notes/Accounts Receivable (Payable)	Notes/Accounts Receivable (Payable)	Note
			Purchases/ Sales	Amount	% of Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total
The Company	Yuen Foong Shop Co., Ltd. Ever Growing Agriculture Bio-tech Co., Ltd. Chung Hwa Pulp Corporation	a. a. b.	Sales Purchases Purchases	$ (1,169,714) 400,563 370,450	(16) 10 9	In agreed terms In agreed terms In agreed terms	$- - -	- - -	$ 132,130 (153,921) (68,922)	13 (32) (14)

Note: a. Parent company and subsidiary.

b. Fellow subsidiaries.

• 44 -

TABLE 2

YUEN FOONG YU CONSUMER PRODUCTS CO., LTD.

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Company Name	Related Party	Relationship	Ending Balance	Turnover Rate	Overdue	Overdue	Amounts Received in Subsequent Period	Allowance for Impairment Loss	Note
					Amount	Actions Taken
The Company	Yuen Foong Shop Co., Ltd.	Subsidiary	$ 132,150	6.55	$ -	-	$ 108,881	$ -	Note

Note: Receivables from related parties include accounts receivable and other receivable.

• 45 -

TABLE 3

YUEN FOONG YU CONSUMER PRODUCTS CO., LTD.

INFORMATION ON INVESTEES FOR THE YEAR ENDED DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Investor Company	Investee Company	Location	Main Businesses and Products	Investment Amount	Investment Amount	As of December 31, 2025	As of December 31, 2025	As of December 31, 2025	Net Income (Loss) of the Investee	Share of Profit (Loss)	Note
				December 31, 2025	December 31, 2024	Number of Shares	%	Carrying Amount
The Company	Yuen Foong Yu Consumer Products Investment Limited Ever Growing Agriculture Bio-tech Co., Ltd. Yuen Foong Shop Co., Ltd. YFY Consumer Products, Co.	Samoa Taipei, Taiwan Taipei, Taiwan United States	Investment holding Manufacturing and wholesale of agricultural services, fertilizers and cleaning products E-commerce of selling consumer products Intellectual property management and e-commerce sales of consumer products	$ 3,845,458 180,795 55,041 -	$ 3,845,458 107,595 55,041 -	150,013,000 21,455,719 5,000,000 -	100 100 100 100	$ 3,390,001 319,168 132,794 339	$ 61,429 47,779 62,120 369	$ 61,429 45,286 62,459 336	a. a. a. a.

Note: a. Subsidiaries.

b. Refer to Table 4 for information on investments in mainland China.

• 46 -

TABLE 4

YUEN FOONG YU CONSUMER PRODUCTS CO., LTD.

INFORMATION ON INVESTMENTS IN MAINLAND CHINA FOR THE YEAR ENDED DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investee Company	Main Businesses and Products	Main Businesses and Products	Paid-in Capital (Note 1)	Method of Investment	Method of Investment	Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2025 (Note 1)	Remittance of Funds	Remittance of Funds	Accumulated Outward Remittance for Investment from Taiwan as of December 31, 2025 (Notes 1 and 4)	Net Income (Loss) of the Investee	% Ownership of Direct or Indirect Investment	Investment Gain (Loss)	Carrying Amount as of December 31, 2025	Accumulated Repatriation of Investment Income as of December 31, 2025
							Outward	Inward
YFY Investment Co., Ltd. YFY Family Care (Kunshan) Co., Ltd. Yuen Foong Yu Consumer Products (Yangzhou) Co., Ltd.	Investment and holding and sale of paper Manufacture and sale of tissue paper and napkins Manufacture and sale of tissue paper and napkins		$ 3,614,450 (US$ 115,000 thousand) 942,900 (US$ 30,000 thousand) 942,900 (US$ 30,000 thousand)	Investment in mainland China through companies set up in another country. Investment in mainland China through companies set up in another country. Investment in mainland China through companies set up in another country.		$ 2,972,492 (US$ 94,575 thousand) - -	$ - - -	$ - - -	$ 2,972,492 (US$ 94,575 thousand) - -	$ 1,400 (Note 2,b.) 9,986 (Note 2,b.) 57,075 (Note 2,b.)	100 100 100	$ 1,400 (Note 2,b.) 10,629 (Note 2,b.) 57,075 (Note 2,b.)	$ 2,118,969 332,695 1,463,877	$ - - -
Accumulated Investment in Mainland China as of December 31, 2025		Investment Amounts Authorized by Investment Commission, MOEA				Upper Limit on Investment
$3,286,784 (Notes 1 and 4)		$3,286,784 (Notes 1 and 4)				(Note 3)

Note 1: The exchange rates were US$1= $31.43 and RMB1=$4.471603 as of December 31, 2025.

Note 2: The recognition basis for investment gain (loss) is as follows:

• a. Financial statements audited by an international CPA firm with the cooperation of the ROC CPA firm. b. Financial statements audited by the ROC CPA firm. c. Others.

Note 3: According to Article 3 of the “Principles of Investing or Technical Cooperation in Mainland China” on August 29, 2008, companies approved by the Industrial Development Bureau, MOEA within the scope of operations of the operational headquarters are not subject to the upper limit. The Company is an eligible enterprise and is not subject to the aforementioned restrictions.

Note 4: The disposal of entire shares of YFY Family Paper (Beijing) Co., Ltd. was completed by the subsidiary YFY Investment Co., Ltd. in August 2020. The sale proceeds have not been remitted back to Taiwan; therefore, the Company has not yet processed the deduction of the accumulated investment amount to the Investment Commission, MOEA.

• 47 -

YUEN FOONG YU CONSUMER PRODUCTS CO., LTD.

THE CONTENTS OF STATEMENTS OF MAJOR ACCOUNTING ITEMS

Item Major Accounting Items in Assets, Liabilities and Equity Statement of notes and accounts receivable Statement of inventories Statement of changes in investments accounted for using the equity method Statement of changes in property, plant, and equipment Statement of other payables Statement of long-term borrowings Major Accounting Items in Profit or Loss Statement of operating revenue Statement of operating costs Statement of operating expenses Statement of employee benefits and depreciation expenses by function

**Statement Index **

1 2 3 Note 10 4 5 6 7 8 9

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STATEMENT 1

YUEN FOONG YU CONSUMER PRODUCTS CO., LTD.

STATEMENT OF NOTES AND ACCOUNTS RECEIVABLE DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Client Name A Company B Company C Company D Company Others (Note) Less: Allowance for impairment loss	Amount $ 338,219 125,326 98,179 72,739 246,409 (31) $ 880,841

Note: The amount included in others does not exceed 5% of the account balance.

• 49 -

STATEMENT 2

YUEN FOONG YU CONSUMER PRODUCTS CO., LTD.

STATEMENT OF INVENTORIES DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Item Materials Work in process Finished and Purchased goods Less: Write-downs of inventories (Note)		Amount
		Cost Net Realizable Value $ 77,205 $ 73,302 156,436 156,034 303,116 296,744 536,757 $ 526,080 (10,677) $ 526,080

Note: Including materials of $3,903 thousand, work in process of $402 thousand, and finished and purchased goods of $6,372 thousand.

• 50 -

STATEMENT 3

YUEN FOONG YU CONSUMER PRODUCTS CO., LTD.

STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD FOR THE YEAR ENDED DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investee Yuen Foong Yu Consumer Products Investment Limited Ever Growing Agriculture Bio-tech Co., Ltd. Yuen Foong Shop Co., Ltd. YFY Consumer Products, Co.	Balance, January 1, 2025 Shares Amount 150,013,000 $ 3,422,493 18,245,944 269,577 5,000,000 119,613 - - $ 3,811,683	Additions in Investment Shares Amount - $ - 3,209,775 73,200 - - - - $ 73,200	Decrease in Investment Amount Shares (Note 3) - $ - - 44,886 - 49,278 - - $ 94,164	Share of Profit of Subsidiaries (Note 1) $ 61,429 45,286 62,459 336 $ 169,510	Equity Adjustments (Note 2) $ (93,921) (24,009) - 3 $ (117,927)	Balance, December 31, 2025 Shares % Amount 150,013,000 100 $ 3,390,001 21,455,719 100 319,168 5,000,000 100 132,794 - 100 339 $ 3,842,302	Market Value or Net Asset Value $ 3,390,001 328,911 135,331 372
			Shares - - - -
	Shares 150,013,000 18,245,944 5,000,000 -	Shares - 3,209,775 - -				Shares % 150,013,000 100 21,455,719 100 5,000,000 100 - 100
							$ 3,854,615

Note 1: The recognition basis for investment gain are the financial statements audited by ROC CPA firm.

Note 2: Including exchange differences arising on translating the financial statements of foreign operations of $(93,918) thousand and Differences between equity purchase price and carrying amount from actual acquisition of equity in subsidiary of $(24,009) thousand.

Note 3: Including cash dividends collected of $93,680 thousand, employee compensation paid by subsidiaries to the Company’s employees of $484 thousand.

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STATEMENT 4

YUEN FOONG YU CONSUMER PRODUCTS CO., LTD.

STATEMENT OF OTHER PAYABLES DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Item Payables on wages and employee benefits Payables on channel marketing expense Payables on equipment Others (Note)	Amount $ 155,176 124,682 101,956 529,199 $ 911,013

Note: The amount included in others does not exceed 5% of the account balance.

• 52 -

STATEMENT 5

YUEN FOONG YU CONSUMER PRODUCTS CO., LTD.

STATEMENT OF LONG-TERM BORROWINGS DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Specified Otherwise)

				Interest Rates	Expired within	Expired within	Expired within	Expired after A	Expired after A
	Name	Contract Period	Repayment Agreement	(%)		A Year			Year	Total Amount		Collateral	Note
Credit borrowings
Bank of Taiwan		2023.05.15-2030.05.15	Principal repayable on maturity, interest payable	1.43	$		-	$	340,850	$	340,850	-	-
			on a monthly basis
Yuanta Commercial Bank		2023.03.27-2028.03.27	Principal repayable on maturity, interest payable	1.48			-		24,000		24,000	-	-
			on a monthly basis
The Export-Import Bank of the Republic of China 2023.05.04-2030.05.04			Principal repayable on maturity, interest payable	1.40			-		1,000,000		1,000,000	-	-
			on a monthly basis
Bank of Taiwan		2025.03.24-2027.03.24	Principal repayable on maturity, interest payable	1.82			-		300,000		300,000	-	-
			on a monthly basis
Mega International Commercial Bank		2024.12.20-2026.12.19	Principal repayable on maturity, interest payable	1.83		270,000			-		270,000	-	-
			on a monthly basis
						270,000			1,664,850		1,934,850
Less: Arrangement fees of syndicated bank loans							-		(1,110)		(1,110)
					$	270,000		$	1,663,740	$	1,933,740

• 53 -

STATEMENT 6

YUEN FOONG YU CONSUMER PRODUCTS CO., LTD.

STATEMENT OF OPERATING REVENUE FOR THE YEAR ENDED DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Item Quantity (In Tons) Paper 93,208 Purchased goods Others (Note)	Amount $ 6,067,773 801,213 613,602 $ 7,482,588

Note: The amount included in others does not exceed 10% of the account balance.

• 54 -

STATEMENT 7

YUEN FOONG YU CONSUMER PRODUCTS CO., LTD.

STATEMENT OF OPERATING COSTS FOR THE YEAR ENDED DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Item Direct materials Direct labor Manufacturing expenses Manufacturing cost Add (less): Work in process, beginning of year Transferred to other accounts Work in process, end of year Cost of finished goods Add (less): Finished goods, beginning of year Finished goods, end of year Transferred to other accounts Write-down of inventories Cost of homemade products sold Purchased goods, beginning of year Finished goods purchased Add (less): Transferred to other accounts Write-down of inventories Purchased goods, end of year

Amount $ 2,800,777 296,868 1,123,837 4,221,482 67,881 (1,032) (156,436) 4,131,895 163,593 (213,651) (22,925) 1,391 4,060,303 69,500 1,307,223 (9,369) 3,152 (89,465) $ 5,341,344

• 55 -

STATEMENT 8

YUEN FOONG YU CONSUMER PRODUCTS CO., LTD.

STATEMENT OF OPERATING EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2025 (In Thousands of New Taiwan Dollars)

Item Employee benefits expense Freight expense Advertising and marketing expense Depreciation expense Others (Note)	Selling and Marketing Expenses General and Administrative Expenses Research and Development Expenses $ 179,533 $ 210,172 $ 24,296 433,109 - - 162,756 - - 64,401 3,399 952 104,965 87,468 9,676 $ 944,764 $ 301,039 $ 34,924	Total $ 414,001 433,109 162,756 68,752 202,109 $ 1,280,727

Note: The amount included in others does not exceed 5% of the account balance.

• 56 -

STATEMENT 9

YUEN FOONG YU CONSUMER PRODUCTS CO., LTD.

STATEMENT OF EMPLOYEE BENEFITS AND DEPRECIATION EXPENSES BY FUNCTION FOR THE YEARS ENDED DECEMBER 31, 2025 and 2024 (In Thousands of New Taiwan Dollars)

Employment benefits expense Salary expense Insurance expense Pension expense Remuneration of directors Other expense Depreciation expense			2025	2025	Total $ 702,346 66,677 28,696 10,189 62,218 $ 870,126 $ 333,726			2024
		Operating Costs $ 342,032 38,961 14,816 - 31,123 $ 426,932 $ 264,974	Operating Expenses $ 331,121 27,716 13,880 10,189 31,095 $ 414,001 $ 68,752	Non- operating Expenses $ 29,193 - - - - $ 29,193 $ -			Operating Costs $ 342,329 37,650 15,017 - 30,589 $ 425,585 $ 232,944	Operating Expenses $ 319,415 26,597 13,689 9,450 21,853 $ 391,004 $ 56,889	Total $ 661,744 64,247 28,706 9,450 52,442 $ 816,589 $ 289,833

1. As of December 31, 2025 and 2024, the Company had 694 and 770 employees, respectively. There were both 4 non-employee directors.

2. A company whose shares are listed on the stock exchange or traded in the over-the-counter market shall disclose the following:

3. a. For the years ended December 31, 2025 and 2024, the average employment benefit expense was $1,246 thousand and $1,054 thousand, respectively. (“Total Employment Benefit Expense” - “Total Compensation for Directors and Supervisors”/”Number of Employees” - “Number of Directors Not Classified as Employees”).

4. b. For the years ended December 31, 2025 and 2024, the average salary expense was $1,018 thousand and $864 thousand, respectively. (“Total Salary Expense”/”Number of Employees” - “Number of Directors Not Classified as Employees”).

5. c. Average salary adjustment was 17.82% (“Current Year Average Salary Expense” - “Prior Year Average Salary Expense”/”Prior Year Average Salary Expense”).

6. d. The Company has no supervisors.

7. Salary and remuneration policy (including directors, managers and employees):

8. a. According to the Articles of Incorporation, if the Company made a profit based on operating results in the current year, 1% or more of the income shall be set aside as compensation of employees and 2% or less shall be distributed as remuneration of directors.

9. b. The total compensation paid to the executive officers which included salary, bonus, and compensation of employees is based on the salary structures of other companies operating similar businesses or with similar business scales, in order to attract outstanding executive officers with a competitive compensation package. Such compensation and remuneration are submitted to the compensation committee and the Company’s board of directors for review and approval.

10. c. The Company participates in compensation surveys to measure pay levels in the labor market. Besides, the Company also takes into account industry pay levels in order to make adequate adjustments to the overall compensation policies. In addition to annual salary adjustment and comprehensive promotional practices, various award systems are established to attract, retain, develop, and encourage talent.

11. 57 -