2025 Q4 Financial Results - Unconsolidated Financial Report (IFRS)

FORMOSA CHEMICALS & FIBRE CORPORATION

For the convenience of readers and for information purpose only, the auditors' report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors' report and financial statements shall prevail.

Items Pages

Index

Independent Auditors' Report 1-7

Parent Company Only Balance Sheets 8-9

Parent Company Only Statements of Comprehensive Income 10-11

Parent Company Only Statements of Changes in Equity 12

Parent Company Only Statements of Cash Flows 13-14

Notes to Parent Company Only Financial Statements 15-80

INDEPENDENT AUDITORS' REPORT TRANSLATED FROM CHINESE

PWCR25000459

To the Board of Directors and Shareholders of FORMOSA CHEMICALS & FIBRE CORPORPATION

We have audited the accompanying parent company only balance sheets of FORMOSA CHEMICALS & FIBRE CORPORATION (the "Company") as at December 31, 2025 and 2024, and the related parent company only statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the parent company only financial statements, including a summary of material accounting policies.

In our opinion, based on our audits and the reports of other auditors (please refer to the Other Matter section), the accompanying parent company only financial statements present fairly, in all material respects, the financial position of the Company as at 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.

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

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

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

Description

Refer to Note 4(10) for accounting policy on accounts receivable, Note 5(2) for uncertainty of accounting estimates and assumptions in relation to impairment of accounts receivable, and Note 6(4) for details of loss allowance for accounts receivable. As of December 31, 2025, the Company's accounts receivable amounted to NT$13,288,310 thousand, net of loss allowance in the amount of NT$26,809 thousand.

The Company assesses expected credit impairment loss on accounts receivable based on historical experience, forward-looking information and known reason or existing objective evidences. For those accounts which are considered uncollectible, the Company recognises impairment with a credit to accounts receivable. Management evaluates the reasonableness of estimated provision periodically. As the estimation of loss allowance is subject to management's judgement and business indicators, the amount of provision is based on the collectability of accounts receivable, and considering that accounts receivable and loss allowance are material to the financial statements, we considered the loss allowance for accounts receivable a key audit matter.

How our audit addressed the matter

We performed the following audit procedures on the above key audit matter:

1. Obtained the overdue aging report used when management assessed the expected credit impairment loss, assessed whether the logic of data source was consistently applied, and tested its accuracy with proper documents.

2. Assessed the reasonableness of estimates used by management in calculating expected credit impairment loss and obtained supporting documents, including forward-looking information, disputed accounts, overdue accounts, subsequent collection, and other indicators that would show that the customer would be unable to repay on schedule.

3. Performed subsequent collection test in order to verify the adequacy of loss allowance provided for accounts receivable.

Description

Refer to Note 4(13) for accounting policy on inventory valuation, Note 5(2) for accounting estimates and assumption uncertainty in relation to inventory valuation, and Note 6(5) for detailed information on allowance for inventory valuation losses. As of December 31, 2025, the inventory and allowance for inventory valuation losses were NT$13,142,726 thousand and NT$869,359 thousand, respectively.

The Company is primarily engaged in the manufacture and sales of petrochemical plastic products, fibers weaving and cords. Because the price of petrochemical plastic products is subject to the fluctuations in international crude oil prices, and the textile market is competitive, there is a higher risk of inventory valuation loss. The Company recognises inventories at the lower of cost and net realisable value, and the net realisable value is calculated based on average price less selling expenses. Since the net realisable value used in inventory valuation involves subjective judgement and high uncertainty in estimation, and the allowance for inventory valuation loss is material to the financial statements, we considered the valuation of inventory as a key audit matter.

How our audit addressed the matter

We performed the following audit procedures on the above key audit matter:

1. Assessed the reasonableness of policies and procedures on allowance for inventory valuation loss, including the reasonableness of classification of inventory in determining the net realisable value;

2. Obtained an understanding of the Company's warehousing control procedures, reviewed the annual physical inventory count plan and participated in the annual inventory count in order to assess the effectiveness of the classification of inventory and internal control over inventory.

3. Checked the method in calculating the net realisable value of inventory and assessed the reasonableness of allowance for valuation loss.

We did not audit the financial statements of certain investments accounted for under the equity method. These investments accounted for under the equity method amounted to NT$119,692,347 thousand and NT$106,814,946 thousand, both constituting 27% of total assets as of December 31, 2025 and 2024, respectively, and comprehensive income (loss) were NT$15,441,142 thousand and (NT$2,656,605) thousand, constituting 20% and 5% of total comprehensive income (loss) for the years then ended, respectively. Those financial statements were audited by other independent auditors whose reports thereon have been furnished to us, and our opinion expressed herein is based solely on the audit reports of the other independent auditors.

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

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

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

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

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

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

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

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

Juanlu, Man-Yu Hsu, Sheng-Chung

for and on behalf of PricewaterhouseCoopers, Taiwan March 10, 2026

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

As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

FORMOSA CHEMICALS & FIBRE CORPORATION PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

December 31, 2025 December 31, 2024

Assets Notes AMOUNT % AMOUNT %

(Continued)

FORMOSA CHEMICALS & FIBRE CORPORATION PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

December 31, 2025 December 31, 2024

Liabilities and equity Notes AMOUNT % AMOUNT %

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

FORMOSA CHEMICALS & FIBRE CORPORATION

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars, except for (loss) earnings per share amount)

Year ended December 31

2025 2024

(Continued)

FORMOSA CHEMICALS & FIBRE CORPORATION

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars, except for (loss) earnings per share amount)

Year ended December 31

2025 2024

Items Notes AMOUNT % AMOUNT %

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

FORMOSA CHEMICALS & FIBRE CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

Retained Earnings Other Equity Interest

Unrealised gains (losses) from financial assets

Notes

Share capital -

common stock Capital surplus Legal reserve Special reserve

Unappropriated retained earnings

Financial statements translation differences of foreign operations

measured at fair value through other comprehensive income

Gains (losses) on

hedging instruments Revaluation surplus Treasury stocks Total

For the year ended December 31, 2024

Balance at January 1, 2024 $ 58,611,863 $ 9,272,140 $ 70,997,369 $ 76,602,492 $ 43,627,704 ($ 3,964,501 ) $ 83,424,591 $ 8,435 $ 1,002,383 ($ 323,952 ) $ 339,258,524

Profit for the year - - - - 379,411 - - - - - 379,411

Other comprehensive income (loss) for the year

6(16)

- - - - 160,834 4,058,276 ( 63,159,434 ) ( 30,224 ) - - ( 58,970,548 )

Total comprehensive income (loss) - - - - 540,245 4,058,276 ( 63,159,434 ) ( 30,224 ) - - ( 58,591,137 )

Appropriations of 2023 earnings 6(15)

Legal reserve - - 870,497 - ( 870,497 ) - - - - - -

Special reserve - - - 142,568 ( 142,568 ) - - - - - -

Cash dividends - - - - ( 7,326,483 ) - - - - - ( 7,326,483 )

Changes in the net interest of associates recognised under the equity method

6(14)

- 114 - - ( 634,746 ) - ( 60,430 ) - - - ( 695,062 )

Expired cash dividends reclassified to capital 6(14) surplus

- 20,695 - - - - - - - - 20,695

Dividends paid to subsidaries to adjust capital - 5,689 - - - - - - - - 5,689 Expired dividends paid from capital surplus 6(14) - ( 927 ) - - - - - - - - ( 927 ) Changes in ownership interests in subsidiaries 6(14) - 6,420 - - - - - - - - 6,420 Difference between consideration and carrying6(16)

amount of subsidiaries acquired or disposed

Disposal of investment in equity instruments designated at fair value through other

- 9,211 - - ( 138,660 ) - - - - - ( 129,449 )

comprehensive income - - - - ( 946 ) - 946 - - - -

Balance at December 31, 2024 $ 58,611,863 $ 9,313,342 $ 71,867,866 $ 76,745,060 $ 35,054,049 $ 93,775 $ 20,205,673 ($ 21,789 ) $ 1,002,383 ($ 323,952 ) $ 272,548,270

For the year ended December 31, 2025

Balance at January 1, 2025 $ 58,611,863 $ 9,313,342 $ 71,867,866 $ 76,745,060 $ 35,054,049 $ 93,775 $ 20,205,673 ($ 21,789 ) $ 1,002,383 ($ 323,952 ) $ 272,548,270

Loss for the year - - - - ( 5,797,137 ) - - - - - ( 5,797,137 )

Other comprehensive income (loss) for the year

6(16)

- - - - 158,145 ( 2,410,691 ) 84,302,370 18,452 - - 82,068,276

Total comprehensive income (loss) - - - - ( 5,638,992 ) ( 2,410,691 ) 84,302,370 18,452 - - 76,271,139

Appropriations of 2024 earnings 6(15)

Cash dividends - - - - ( 2,930,593 ) - - - - - ( 2,930,593 )

Changes in the net interest of associates recognised under the equity method

6(14)

- ( 35,038 ) - - 1,638,439 - ( 1,638,439 ) - - - ( 35,038 )

Expired cash dividends reclassified to capital 6(14) surplus

- 12,362 - - - - - - - - 12,362

Dividends paid to subsidaries to adjust capital 6(14) - 2,932 - - - - - - - - 2,932 Expired dividends paid from capital surplus 6(14) - ( 2,024 ) - - - - - - - - ( 2,024 ) Changes in ownership interests in subsidiaries 6(14) - 458 - - - - - - - - 458

Difference between consideration and carrying6(14)

amount of subsidiaries acquired or disposed

Disposal of investments in equity instruments 6(3)(16) designated at fair value through other

comprehensive income

- 8,350 - - - - - - - - 8,350

- - - - 6,353,178 - ( 6,353,178 ) - - - -

Acquisition of ownership interests in subsidiaries

6(14)

- ( 9,353 ) - - - - - - - - ( 9,353 )

Balance at December 31, 2025 $ 58,611,863 $ 9,291,029 $ 71,867,866 $ 76,745,060 $ 34,476,081 ($ 2,316,916 ) $ 96,516,426 ($ 3,337 ) $ 1,002,383 ($ 323,952 ) $ 345,866,503

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

FORMOSA CHEMICALS & FIBRE CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

Year ended December 31

FORMOSA CHEMICALS & FIBRE CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

Year ended December 31

Notes 2025 2024

CASH FLOWS FROM INVESTING ACTIVITIES

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

FORMOSA CHEMICALS & FIBRE CORPORATION

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

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

1. History and Organization

   Formosa Chemicals & Fibre Corporation (the Company) was founded on March 5, 1965. The Company now has eight business divisions, namely First Chemical Division, Petrochemicals Division, Third Chemical Division, Plastics Division, Textile Division, First Fiber Division, Second Fiber Division, and Engineering & Construction Division. The Company's major businesses are production and sales of petrochemical products, including PTA, PS, AN, Butadiene, SM polymer, SM, benzene, toluene, p-xylene (PX) and o-xylene (OX), as well as nylon fiber, and rayon staple fiber. The Company is also engaged in spinning, weaving, dyeing and finishing.

2. The Date of Authorisation for Issuance of the Financial Statements and Procedures for Authorisation These parent company only financial statements were authorised for issuance by the Board of Directors on March 10, 2026.

3. Application of New Standards, Amendments and Interpretations

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

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

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

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

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

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

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

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

      Specific provisions of Amendments to IFRS 9 and IFRS 7, 'Amendments to the classification and measurement of financial instruments'

      1. Clarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion, covering contractual terms that can change cash flows based on contingent events (for example, interest rates linked to ESG targets), non-recourse features and contractually-linked instruments.

      2. Update the disclosures for equity instruments designated at fair value through other comprehensive income (FVOCI). The entity shall disclose the fair value of each class of investment and is no longer required to disclose the fair value of each investment. In addition, the amendments require the entity to disclose the fair value gain or loss presented in other comprehensive income during the period, showing separately the fair value gain or loss related to investments derecognised during the reporting period and the fair value gain or loss related to investments held at the end of the reporting period; and any transfers of the cumulative gain or loss within equity during the reporting period related to the investments derecognised during that reporting period.

      3. Clarify the date of recognition and derecognition of some financial assets and liabilities, with a new exception relating to the derecognition of a financial liability (or part of a financial liability) settled through an electronic cash transfer system. Applying the exception, an entity is permitted to derecognise a financial liability at an earlier date if, and only if, the entity has initiated a payment instruction and specific conditions are met. The conditions for the exception are that the entity making the payment does not have:

         1. the practical ability to withdraw, stop or cancel the payment instruction;

         2. the practical ability to access the cash used for settlement; and

         3. significant settlement risk.

      4. Update the disclosures for equity instruments designated at fair value through other comprehensive income (FVOCI). The entity shall disclose the fair value of each class of investment and is no longer required to disclose the fair value of each investment. In addition, the amendments require the entity to disclose the fair value gain or loss presented in other comprehensive income during the period, showing separately the fair value gain or loss related to investments derecognised during the reporting period and the fair value gain or loss related to investments held at the end of the reporting period; and any transfers of the cumulative gain or loss within equity during the reporting period related to the investments derecognised during that reporting period.

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

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

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

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

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

      IFRS 18, 'Presentation and disclosure in financial statements'

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

4. Summary of Material Accounting Policies

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

   1. Compliance statement

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

   2. Basis of preparation

      1. Except for the following items, these parent company only financial statements have been prepared under the historical cost convention:

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

         2. Financial assets at fair value through other comprehensive income.

         3. Defined benefit liabilities rec ognised based on the net amount of pension fund assets less present value of defined benefit obligation.

      2. The preparation of financial statements in conformity with International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect as endorsed by the FSC (collectively referred herein as the "IFRSs") requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.

   3. Foreign currency translation

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

      1. Foreign currency transactions and balances

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

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

         3. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are retranslated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are retranslated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in other comprehensive income. However, non-monetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated

            using the historical exchange rates at the dates of the initial transactions.

         4. All foreign exchange gains and losses are presented in the statement of comprehensive income within 'other gains and losses'.

      2. Translation of foreign operations

         1. The operating results and financial position of all associates and jointly controlled entities that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

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

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

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

         2. When the foreign operation partially disposed of or sold is an associate or joint arrangement, exchange differences that were recorded in other comprehensive income are proportionately reclassified to profit or loss as part of the gain or loss on sale. In addition, when the Company retains partial interest in the former foreign associate or joint arrangement after losing significant influence over the former foreign associate, or losing joint control of the former joint arrangement, such transactions should be accounted for as disposal of all interest in these foreign operations.

   4. Classification of current and non-current items

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

         1. Assets that are expected to be realised, or are intended to be sold or consumed in the normal operating cycle;

         2. Assets that are held primarily for the purpose of trading;

         3. Assets that are expected to be realised within twelve months after the reporting period;

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

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

         1. Liabilities that are expected to be settled in the normal operating cycle;

         2. Liabilities that are held primarily for the purpose of trading;

         3. Liabilities that are due to be settled within twelve months after the reporting period;

         4. It does not have the right at the end of the reporting period to defer settlement of the liability at least twelve months after the reporting period.

   5. Cash equivalents

      Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Time deposits that

      meet the definition above and are held for the purpose of meeting short-term cash commitments in operations are classified as cash equivalents.

   6. Financial assets at fair value through profit or loss

      1. Financial assets at fair value through profit or loss are financial assets that are not measured at amortised cost or fair value through other comprehensive income. Financial assets at amortised cost or fair value through other comprehensive income are designated as at fair value through profit or loss at initial recognition when they eliminate or significantly reduce a measurement or recognition inconsistency.

      2. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognised and derecognised using trade date accounting.

      3. At initial recognition, the Company measures the financial assets at fair value and recognises the transaction costs in profit or loss. The Company subsequently measures the financial assets at fair value, and recognises the gain or loss in profit or loss.

      4. The Company recognises the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Company and the amount of the dividend can be measured reliably.

   7. Financial assets at fair value through other comprehensive income

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

         1. The objective of the Company's business model is achieved both by collecting contractual cash flows and selling financial assets; and

         2. The assets' contractual cash flows represent solely payments of principal and interest.

      2. On a regular way purchase or sale basis, financial assets at fair value through other comprehensive income are recognised and derecognised using trade date accounting.

      3. At initial recognition, the Company measures the financial assets at fair value plus transaction costs. The Company subsequently measures the financial assets at fair value:

         1. The changes in fair value of equity investments that were recognised in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment. Dividends are recognised as revenue when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Company and the amount of the dividend can be measured reliably.

         2. Except for the recognition of impairment loss, interest income and gain or loss on foreign exchange which are recognised in profit or loss, the changes in fair value of debt instruments are taken through other comprehensive income. When the financial asset is derecognised, the cumulative gain or loss previously recognised in other comprehensive income is reclassified from equity to profit or loss.

   8. Financial assets at amortised cost

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

         1. The objective of the Company's business model is achieved by collecting contractual cash flows.

         2. The assets' contractual cash flows represent solely payments of principal and interest.

      2. On a regular way purchase or sale basis, financial assets at amortised cost are recognised and derecognised using trade date accounting.

      3. At initial recognition, the Company measures the financial assets at fair value plus transaction costs. Interest income from these financial assets is included in finance income using the effective interest method. A gain or loss is recognised in profit or loss when the asset is derecognised or impaired.

      4. The Company's time deposits which do not fall under cash equivalents are those with a short maturity period and are measured at initial investment amount as the effect of discounting is immaterial.

   9. Accounts and notes receivable

      1. Accounts and notes receivable entitle the Company a legal right to receive consideration in exchange for transferred goods or rendered services.

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

   10. Impairment of financial assets

       For debt instruments measured at fair value through other comprehensive income including accounts receivable or contract assets that have a significant financing component, at each reporting date, the Company recognises the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognises the impairment provision for the lifetime expected credit losses (ECLs) if such credit risk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand, for accounts receivable or contract assets that do not contain a significant financing component, the Company recognises the impairment provision for lifetime ECLs.

   11. Derecognition of financial assets

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

   12. Leasing arrangements (lessor)－operating leases

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

   13. Inventories

       Inventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted-average method. The cost of finished goods and work in process comprises raw materials,

       direct labor, other direct costs and related production overheads (allocated based on normal operating capacity). It excludes borrowing costs. The item by item approach is used in applying the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and applicable variable selling expenses.

   14. Investments accounted for using equity method/subsidiaries and associates

       1. Associates are all entities over which the Company has significant influence but not control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for using the equity method and are initially recognised at cost.

       2. Unrealised profit (loss) occurred from the transactions between the Company and subsidiaries have been offset. The accounting policies of the subsidiaries have been adjusted to comply with the Company's accounting policies.

       3. The Company's share of its subsidiaries' post-acquisition profits or losses is recognised in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income. When the Company's share of losses in a subsidiary equals or exceeds its interest in the subsidiary, the Company continues to recognise losses proportionate to its ownership.

       4. If changes in the Company's shares in subsidiaries do not result in loss in control (transactions with non-controlling interest), transactions shall be considered as equity transactions, which are transactions between owners. Difference of adjustment of non-controlling interest and fair value of consideration paid or received is recognised in equity.

       5. Upon loss of significant influence over a subsidiary, the Company remeasures any investment retained in the former subsidiary at its fair value. Any difference between fair value and carrying amount is recognised in profit or loss. The amount previously recognised in other comprehensive income in relation to the subsidiary is reclassified to profit or loss, on the same basis as would be required if the relevant assets or liabilities were disposed of. When the Company loses significant influence over the subsidiary, the profit or loss is reclassified from equity to profit or loss.

       6. Associates are all entities over which the Company has significant influence but not control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for using the equity method and are initially recognised at cost.

       7. The Company's share of its associates' post-acquisition profits or losses is recognised in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income. When the Company's share of losses in an associate equals or exceeds its interest in the associate (including any other unsecured receivables), the Company does not recognise further losses, unless it has incurred statutory/constructive obligations or

          made payments on behalf of the associate.

       8. When changes in an associate's equity do not arise from profit or loss or other comprehensive income of the associate and such changes do not affect the Company's ownership percentage of the associate, the Company recognises the Company's share of change in equity of the associate in 'capital surplus' in proportion to its ownership.

       9. Unrealised gains on transactions between the Company and its associates are eliminated to the extent of the Company's interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been adjusted where necessary to ensure consistency with the policies adopted by the Company.

       10. In the case that an associate issues new shares and the Company does not subscribe or acquire new shares proportionately, which results in a change in the Company's ownership percentage of the associate but maintains significant influence on the associate, then 'capital surplus' and 'investments accounted for under the equity method' shall be adjusted for the increase or decrease of its share of equity interest. If the above condition causes a decrease in the Company's ownership percentage of the associate, in addition to the above adjustment, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately on the same basis as would be required if the relevant assets or liabilities were disposed of.

       11. When the Company disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate, are reclassified to profit or loss, on the same basis as would be required if the relevant assets or liabilities were disposed of. If it retains significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately in accordance with the aforementioned approach.

       12. When the Company disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognised as capital surplus in relation to the associate are transferred to profit or loss. If it retains significant influence over this associate, the amounts previously recognised as capital surplus in relation to the associate are transferred to profit or loss proportionately.

       13. Pursuant to the "Regulations Governing the Preparation of Financial Reports by Securities Issuers," profit (loss) of the current period and other comprehensive income in the parent company only financial statements shall equal to the amount attributable to owners of the parent in the consolidated financial statements. Owners' equity in the parent company only financial statements shall equal to equity attributable to owners of the parent in the consolidated financial statements.

   15. Property, plant and equipment

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

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

       3. Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.

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

       Land Improvements 10 years

       Buildings 15 ～ 50 years

       Machinery and equipment 5 ～ 15 years

       Transportation equipment 3 ～ 15 years

       Other equipment 3 ～ 15 years

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

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

       2. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payments are comprised of Fixed payments, less any lease incentives receivable;The Company subsequently measures the lease liability at amortised cost using the interest method and recognises interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognised as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

       3. At the commencement date, the right-of-use asset is stated at cost comprising the amount of the initial measurement of lease liability;The right-of-use asset is measured subsequently using the

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

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

   17. Impairment of non-financial assets

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

   18. Borrowings

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

   19. Notes and accounts payable

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

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

   20. Bonds payable

       Ordinary corporate bonds issued by the company are initially recognised at fair value less transaction costs. Any difference between the proceeds (net of transaction costs) and the redemption value is presented as an addition to or deduction from bonds payable, which is

       amortised to profit or loss over the period of bond circulation using the effective interest method as an adjustment to 'finance costs'.

   21. Derecognition of financial liabilities

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

   22. Non-hedging derivatives

       Non-hedging derivatives are initially recognised at fair value on the date a derivative contract is entered into and recorded as financial assets or financial liabilities at fair value through profit or loss. They are subsequently remeasured at fair value and the gains or losses are recognised in profit or loss.

   23. Provisions

       Under the Climate Change Response Act and its regulations in the ROC, carbon fees levied are not applicable under IFRIC 21, 'Levies' but are recognised and measured in accordance with IAS 37, 'Provisions, Contingent Liabilities and Contingent Assets'. If the estimated annual emissions are probable to exceed the threshold for levying, liabilities in relation to emission fees are estimated and accrued based on the proportion of emissions already incurred to the estimated annual emissions in the interim financial statements.

   24. Employee benefits

       1. Short-term employee benefits

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

       2. Pensions

          1. Defined contribution plan

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

          2. Defined benefit plan

             1. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Company in current period or prior periods. The liability recognised in the balance sheet in respect of defined benefit pension plan is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability; when there is no deep market in high-quality corporate bonds, the Company uses interest rates of government bonds (at the balance sheet date) instead.

             2. Remeasurements arising on defined benefit plan are recognised in other comprehensive income in the period in which they arise and are recorded as other equity.

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

       3. Employees', directors' and supervisors' remuneration

       Employees' remuneration and directors' and supervisors' remuneration are recognised as expense and liability, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates.

   25. Income tax

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

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

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

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

       5. Current income tax assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. Deferred income tax assets and liabilities are offset on the balance sheet when the entity has the legally enforceable right to offset current tax assets against current tax liabilities and they are levied by the same taxation authority on either the same entity or different entities that intend to

          settle on a net basis or realise the asset and settle the liability simultaneously.

       6. A deferred tax asset shall be recognised for the carryforward of unused tax credits resulting from acquisitions of equipment or technology and equity investments to the extent that it is possible that future taxable profit will be available against which the unused tax credits can be utilised.

   26. Share capital

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

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

   27. Dividends

       A. Dividends are recorded in the Company's financial statements in the period in which they are approved by the Company's shareholders. Cash dividends are recorded as liabilities; stock dividends are recorded as stock dividends to be distributed and are reclassified to ordinary shares on the effective date of new shares issuance.

       A. For the shareholders' dividends that should be distributed in cash, the Company's Board of Directors would be adopted by a majority vote at a meeting of the Board of Directors attended by two-thirds of the total number of directors, and then reported to the shareholders. The provision that must be resolved by the shareholders' meeting shall not apply.

   28. Revenue recognition Sales of goods

       1. The Company manufactures and sells a variety of petrochemical products, including the spinning, weaving, dyeing and finishing of rayon and nylon fiber. Sales are recognised when control of the products has transferred, being when the products are delivered to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer's acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the wholesaler, and either the wholesaler has accepted the products in accordance with the sales contract, or the Company has objective evidence that all criteria for acceptance have been satisfied.

       2. The amount of sales revenue recognised is equal to the contract price net of volume discounts and sales discounts and allowances. Volume discounts and sales discounts and allowances are estimated based on historical information, and a refund liability is recognised for expected volume discounts and sales discounts and allowances payable to customers in relation to sales made until the end of the reporting period. The sales usually are made with a credit term of 30 to

          120 days. As the time interval between the transfer of committed goods or service and the payment of customer does not exceed one year, the Company does not adjust the transaction price to reflect the time value of money.

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

5. Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty

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

   1. Critical judgements in applying the Company's accounting policies None.

   2. Critical accounting estimates and assumptions

1. Impairment assessment of accounts receivable

   In the process of assessing impairment of accounts receivable, the Company must use judgements and assumptions to determine the collectability of accounts receivable. The collectability is affected by various factors: customers' financial conditions, the Company's internal credit ratings, historical experience, etc. When sales are not expected to be collected, the Company recognises a specific allowance for doubtful receivables after the assessment. The assumptions and estimates of loss allowance provided for accounts receivable are based on concerning future events as that on the balance sheet date. Assumptions and estimates may differ from the actual results which may result in material adjustments.

2. Evaluation of inventories

As inventories are stated at the lower of cost and net realisable value, the Company must determine the net realisable value of inventories on balance sheet date using judgements and estimates. Due to the rapid technology innovation, the Company evaluates the amounts of normal inventory consumption, obsolete inventories or inventories without market selling value on balance sheet date, and writes down the cost of inventories to the net realisable value.

As of December 31, 2025, the carrying amount of inventories was $12,273,367.

Commercial papers - 3,076,723

$ 3,208,084 $ 7,204,645

1. The Company transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote. Loss allowance is measured using 12-month expected credit losses. For the years ended December 31, 2025 and 2024, the Company did not recognise any loss allowance.

2. The Company repatriated the capital in the amount of USD 35,795 thousand in accordance with "The Management, Utilisation, and Taxation of Repatriated Offshore Funds Act" in June 2021. As of December 31, 2025, the undrawn capital amounted to $283,972, which was restricted under the "The Management, Utilisation, and Taxation of Repatriated Offshore Funds Act". However, according to IFRS Q&A amended by the competent authority on January 5, 2024, the restriction from the Act did not change the nature of deposits, therefore, the capital was still listed in 'cash and cash equivalent'.

3. The Company has entered into a trust contract with Mega International Commercial Bank for participation in the Urban Renewal Project of Formosa Plastics Building and has opened a segregated trust account earmarked as trust for its intended purposes, such as covering construction costs, taxes and related expenses. As of December 31, 2025, the balance in the trust account is $598,482. Due to the restriction on its usage, this amount has been reclassified under "Non-current financial assets at amortized cost"

4. The Company has no cash and cash equivalents pledged to others.

1. Financial assets at fair value through profit or loss

   December 31, 2025 December 31, 2024

   Current item:

   Financial assets mandatorily measured at fair value through profit or loss

   Fund	$ 1,491,063	$ 1,491,063
   Valuation adjustment	358,592	355,138
   Total	$ 1,849,655	$ 1,846,201

   1. Amounts recognised in profit or loss in relation to financial assets at fair value through profit or loss are listed below:

      Financial assets mandatorily measured at fair value through profit or loss

      For the years ended December 31,

      2025 2024

      Fund

      $ 3,454

      $ 204,603

   2. The Company did not pledge financial assets at fair value through profit or loss to others as collateral.

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

2. Financial assets at fair value through other comprehensive income

   December 31, 2025 December 31, 2024

   Current items:

   Equity instruments

   Listed stocks	$ 21,928,264	$ 23,864,654
   Unlisted stocks	725,839	725,839
   Valuation adjustment	75,598,430	16,486,683
   	$ 98,252,533	$ 41,077,176

   Non-current items:

   Equity instruments
   Unlisted stocks	$ 20,215,610	$ 20,173,921
   Valuation adjustment	8,029,765	6,548,273
   	$ 28,245,375	$ 26,722,194

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

      For the years ended December 31,

      2025 2024

      Equity instruments at fair value through other comprehensive income

      Fair value change recognised in other comprehensive income (loss)

      Cumulative gains reclassified to retained earnings due to derecognition

      $ 66,946,417

      $ 6,353,178

      ($ 50,080,755)

      $ -

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

      $126,497,908 and $67,799,370, respectively.

   3. The Company did not pledge financial assets at fair value through other comprehensive income to others as collateral.

   4. The Company sold a total of 61,972 thousand shares of Nanya Technology Corporation in the open market during 2025. The Company recognised a gain on disposal of investments amounting to $6,353,178, which was recorded under retained earnings.

   5. Information relating to credit risk of financial assets at fair value through other comprehensive income is provided in Note 12(2).

3. Notes and accounts receivable

   		December 31, 2025		December 31, 2024
   Notes receivable Less: Allowance for uncollectible accounts		$ 43,430 -		$ 75,731 -
   		$ 43,430		$ 75,731
   Notes receivable - related parties		$ 44,821		$ 28,373
   Accounts receivable		$ 5,689,467		$ 6,914,693
   Less: Allowance for uncollectible accounts	(	26,809)	(	66,840)
   		$ 5,662,658		$ 6,847,853
   Accounts receivable - related parties		$ 7,625,652		$ 10,639,606

   1. As of December 31, 2025 and 2024, accounts receivable and notes receivable were all from contracts with customers. As of January 1, 2024, the balance of receivables from contracts with customers amounted to $18,857,416.

   2. As at December 31, 2025 and 2024, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Company's notes receivable were $88,251 and $104,104 and accounts receivable were

      $13,288,310 and $17,487,459, respectively.

   3. Information relating to credit risk is provided in Note 12(2).

4. Inventories

   December 31, 2025 Allowance for

   	Cost	valuation loss	Book value
   Raw materials	$ 4,410,915	($ 133,952)	$ 4,276,963
   Supplies	2,830,543	( 626,927)	2,203,616
   Work in progress	1,786,882	( 20,407)	1,766,475
   Finished goods	4,112,911	( 88,073)	4,024,838
   Other inventory	1,475	-	1,475
   	$ 13,142,726	($ 869,359)	$ 12,273,367

   December 31, 2024 Allowance for

   	Cost	valuation loss	Book value
   Raw materials	$ 6,297,111	($ 44,334)	$ 6,252,777
   Supplies	3,252,586	( 686,436)	2,566,150
   Work in progress	2,745,014	( 158,382)	2,586,632
   Finished goods	5,502,095	( 154,996)	5,347,099
   Other inventory	1,091	-	1,091
   	$ 17,797,897	($ 1,044,148)	$ 16,753,749

   Expense and loss incurred on inventories for the years ended December 31, 2025 and 2024 were as follows:

   For the years ended December 31,

   		2025	2024
   Cost of inventories sold		$ 156,625,207	$ 209,403,682
   (Gain) loss on inventory valuation (Note) Idle capacity (including annual survey	(	174,789)	162,488
   and work stoppage)		1,999,744	1,522,734
   Others		15,715	13,270
   		$ 158,465,877	$ 211,102,174

   Note: For the year ended December 31, 2025, disposal of excess inventory resulted in gain from price recovery of inventory.

5. Investments accounted for using equity method

   Subsidiaries

   December 31, 2025 December 31, 2024

   FCFC Investment Corp. (Cayman)	$ 57,261,575	$ 60,866,947
   Formosa Taffeta Co., Ltd.	15,387,187	13,375,785
   Formosa Industries Corp., Vietnam	4,608,800	5,135,670
   Formosa Idemitsu Petrochemical Corp.	750,887	1,166,887
   Formosa INEOS Chemicals Corp.	1,692,885	1,859,716
   Formosa Biomedical Technology Corp.	2,529,364	2,746,083
   Formosa Carpet Corp.	167,212	178,172
   Chia-Nan Enterprise Corp.	369,279	357,695
   Formosa Green Power Corp.	4,767	4,853
   Formosa Renewable Energy Corp.	50,676	50,250
   Associates
   Formosa Petrochemical Corp.	85,771,126	71,636,022
   Mai Liao Power Corp.	18,010,331	16,146,749
   Formosa Heavy Industries Corp.	5,760,307	5,775,112
   Formosa Resourse Corp.	4,062,093	6,403,506
   Formosa Synthetic Rubber Corp. (Hong Kong)	1,314,670	1,468,190
   FG INC.	3,262,038	3,412,754
   Formosa Plastics Transport Corp.	1,475,162	1,400,881
   Formosa Group (CAYMAN) Corp.	-	968,838
   Formosa Environmental Technology Corp.	247,608	240,481
   Formosa Plastics Construction Corp.	1,042,992	1,015,981
   Formosa Smart Energy Tech Corp. Hwa Ya Science Park Management Consulting	3,310,743	3,326,411
   Co., Ltd.	5,247	5,060
   Guo Su Plastic Industry Co., Ltd.	3,302	50,768
   	$ 207,088,251	$ 197,592,811

   1. The related information on subsidiaries is provided in Note 4(3) of consolidated financial statements for 2025.

   2. The investments accounted for using equity method were based on the investees' audited financial statements for the corresponding periods. The share of profit of subsidiaries and associates accounted for under equity method amounted to $382,911 and $1,096,206 for the years ended December 31, 2025 and 2024, respectively.

   3. The financial information of the associate that is material to the Company is as follows:

      Shareholding ratio

      Principal place December December Nature of Method of

      Company name of business 31, 2025 31, 2024 relationship measurement

      Formosa Petrochemical Corp.

      Taiwan 24.15% 24.15% Investments

      accounted for using

      equity method

      Equity method

   4. The summarised financial information of the associate that is material to the Company is shown below:

      Balance Sheet

      Formosa Petrochemical Corp.

      		December 31, 2025		December 31, 2024
      Current assets		$ 250,972,699		$ 200,901,284
      Non-current assets		155,285,361		160,254,258
      Current liabilities	(	37,762,267)	(	44,540,292)
      Non-current liabilities	(	12,703,706)	(	19,654,686)
      Total net assets		$ 355,792,087		$ 296,960,564
      Share in associate's net assets Unrealised (loss) gain from sales of upstream		$ 85,923,789		$ 71,715,976
      transactions eliminations	(	41,944)		30,765
      Net differences in share capital	(	110,719)	(	110,719)
      Carrying amount of the associate		$ 85,771,126		$ 71,636,022
      Statement of comprehensive income

      Formosa Petrochemical Corp.

      For the years ended December 31,

      	2025	2024
      Revenue	$ 623,414,243	$ 661,405,434
      Profit for the year from continuing operations	$ 9,875,335	$ 5,970,918
      Other comprehensive income (loss), net of tax	56,574,456	( 26,293,192)
      Total comprehensive income (loss)	$ 66,449,791	($ 20,322,274)
      Dividends received from associates	$ 1,840,640	$ 4,601,600

   5. The carrying amount of the Company's interests in all individually immaterial associates and the Company's share of the operating results are summarised below:

      As of December 31, 2025 and 2024, the carrying amount of the Company's individually immaterial associates amounted to $38,494,493 and $40,214,731, respectively.

      For the years ended December 31,

      	2025	2024
      (Loss) profit for the year from continuing	($ 4,883,264)	$ 2,678,276
      operations
      Other comprehensive income, net of tax	3,181,060	4,704,013
      Total comprehensive (loss) income	($ 1,702,204)	$ 7,382,289

   6. The fair value of the Company's associate which has quoted market price is as follows:

      December 31, 2025 December 31, 2024

      Formosa Petrochemical Corp.

      $ 109,978,230

      $ 79,492,633

   7. On August 4, 2023, the Board of Directors of the Company resolved to increase its investment in Formosa Resources Corp. amounting to US$25,000 thousand, equivalent to $799,625, in proportion to its original ownership of 25%.

   8. On May 5, 2022, the Board of Directors resolved to invest in $800,000 and $500,000 in Formosa Smart Energy Tech Corp. in May 2022 and August 2023, respectively, and the shareholding ratio was 20%. On May 3, 2024, the Board of Directors resolved to increase its investment in Formosa Smart Energy Tech Corp. by $2,000,000 in proportion to its original ownership of 20%.

   9. On May 9, 2024, the Company was approved by the authority to establish Formosa Renewable Energy Corporation with an investment amount of $50,000, and the shareholding ratio was 100%. The Company's board of directors during its meeting on August 29, 2025 resolved to dissolve the investee due to operational considerations, and the dissolution was approved by the authority on September 1, 2025. As of December 31, 2025, the liquidation procedures have not yet been completed.

   10. Guo Su Plastic Industry Co., Ltd. resolved to reduce capital by $55,000 to offset against accumulated deficit, at the stockholders' meeting on October 20, 2025. On the same date, the board of directors resolved a cash capital increase of $20,000. The Company did not increase the capital in proportion to its original shareholding, resulting in a decrease in its ownership interest from 49.00% to 24.50%, and a reduction in capital surplus of $35,642.

   11. As approved by the competent authority, Formosa Plastics Group (Cayman) Company has undergone dissolution and liquidation, which was completed on December 23, 2025. The Company recognized a loss on disposal of investment amounting to $33,771, representing the difference between the carrying amount of the investment and the proceeds from liquidation of

       $935,478.

   12. The Company received cash dividends of $3,653,438 and $9,357,203 for the years ended December 31, 2025 and 2024, respectively, from its investments accounted for using equity method. The cash dividends are recorded as a deduction from the Company's investments accounted for using equity method.

   13. As of December 31, 2025 and 2024, no equity investment held by the Company was pledged to others.

6. Property, plant and equipment

   Machinery

   Transportation

   Construction in progress and equipment to

   At January 1, 2025 Cost	$ 9,663,345	$ 22,137,135 $ 198,963,555 $	4,909,946 $	10,327,204 $ 246,001,185
   Accumulated
   depreciation
   and impairment	-	( 16,774,738) ( 161,144,782) (	4,150,301) (	20,032) ( 182,089,853)

   Land Buildings and equipment equipment be inspected Total

   		$ 9,663,345	$ 5,362,397	$ 37,818,773	$ 759,645	$ 10,307,172	$ 63,911,332
   2025
   Opening net book amount		$ 9,663,345	$ 5,362,397	$ 37,818,773	$ 759,645	$ 10,307,172	$ 63,911,332
   Additions		-	31,702	481,835	27,192	6,451,069	6,991,798
   Disposals	(	17,960) (	584) (	391,870) (	1,035)	- (	411,449)
   Reclassifications		81,398	71,426	5,129,063	120,205 (	5,403,727) (	1,635)
   Depreciation charge		- (	539,151) (	4,604,293) (	197,822)	- (	5,341,266)
   Impairment loss		- (	24,516) (	773,561) (	54)	- (	798,131)
   Reversal of Impairment loss		-	-	408	-	-	408
   Closing net book amount		$ 9,726,783	$ 4,901,274	$ 37,660,355	$ 708,131	$ 11,354,514	$ 64,351,057
   At December 31, 2025

   Cost Accumulated

   depreciation

   $ 9,726,783

   $ 22,236,403

   $ 202,850,230

   $ 4,989,456

   $ 11,374,546

   $ 251,177,418

   and impairment - (

   17,335,129) (

   165,189,875) (

   4,281,325) (

   20,032) (

   186,826,361)

   $ 9,726,783

   $ 4,901,274

   $ 37,660,355 $

   708,131

   $ 11,354,514

   $ 64,351,057

   Machinery

   Transportation

   Construction in progress and equipment to

   At January 1, 2024

   Land Buildings

   and equipment equipment be inspected Total

   Cost Accumulated

   depreciation

   $ 9,617,122

   $ 21,347,638

   $ 192,325,624

   $ 4,804,591

   $ 11,064,676

   $ 239,159,651

   and impairment - (

   16,182,804) (

   156,929,848) (

   3,950,208)

   - ( 177,062,860)

   	$ 9,617,122		$ 5,164,834		$ 35,395,776		$ 854,383		$ 11,064,676		$ 62,096,791
   2024
   Opening net book amount	$ 9,617,122		$ 5,164,834		$ 35,395,776		$ 854,383		$ 11,064,676		$ 62,096,791
   Additions	-		266,136		343,577		49,622		6,534,695		7,194,030
   Disposals	-		-	(	5,555)		-		- (		5,555)
   Reclassifications	46,223		523,361		6,633,857		86,922	(	7,272,167)		18,196
   Depreciation charge	-	( 550,775) (			4,513,752) ( 231,271) - ( 5,295,798)
   Impairment loss	-	( 41,159) (			35,130) ( 11) ( 20,032) ( 96,332)
   Closing net book amount	$ 9,663,345		$ 5,362,397		$ 37,818,773		$ 759,645		$ 10,307,172		$ 63,911,332
   At December 31, 2024
   Cost Accumulated	$ 9,663,345	$ 22,137,135		$ 198,963,555		$ 4,909,946 $				10,327,204	$ 246,001,185
   depreciation
   and impairment	-	( 16,774,738)		( 161,144,782) (			4,150,301) (			20,032) ( 182,089,853)
   	$ 9,663,345	$ 5,362,397		$ 37,818,773			$ 759,645 $			10,307,172	$ 63,911,332

   1. Amount of borrowing costs capitalised as part of property, plant and equipment and the range of the interest rates for such capitalisation are as follows:

      For the years ended December 31,

      2025 2024

      Amount capitalised

      $ 133,282

      $ 141,402

      Interest rate 1.44%~1.62% 1.39%~1.54%

   2. Under the regulations, land may only be owned by individuals. Thus, the Company has already obtained ownership of the agricultural land for future plant expansion which was acquired by the Company under the name of a third party, who has pledged the full amount to the Company. As of December 31, 2025 and 2024, the pledged amount was both $9,618.

   3. Information about the property, plant and equipment that were pledged to others as collateral is provided in Note 8.

   4. The Company recognised impairment loss and reversal gain of impairment loss for the years ended December 31, 2025 and 2024, respectively as follows:

Year ended December 31, 2025

Recognised in profit or Recognised in other

loss comprehensive income

Impairment loss－transportation equipment 54 -

$ 797,723 $ -

Year ended December 31, 2024

Recognised in profit or Recognised in other

loss comprehensive income

and equipment to be inspected 20,032 -

$ 96,332 $ -