Consolidated financial statements 2025q1

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

INDEPENDENT AUDITORS' REVIEW REPORT TRANSLATED FROM CHINESE

To the Board of Directors and Shareholders of NANTEX INDUSTRY CO., LTD.

We have reviewed the accompanying consolidated balance sheets of NANTEX INDUSTRY CO., LTD. and subsidiaries (the "Group") as at March 31, 2025 and 2024, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the three months then ended, and notes to the consolidated financial statements, including a summary of material accounting policies. Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, "Interim Financial Reporting" that came into effect as endorsed by the Financial Supervisory Commission. Our responsibility is to express a conclusion on these consolidated financial statements based on our reviews.

Except as explained in the following paragraph, we conducted our reviews in accordance with the Standard on Review Engagements 2410, "Review of Financial Information Performed by the Independent Auditor of the Entity" of the Republic of China. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

The financial statements and related information disclosed in Note 13 of an insignificant consolidated subsidiary, Nanmat Technology Co., Ltd., were not reviewed by independent auditors. Total assets of the subsidiary amounted to NT$2,440,978 thousand, constituting 14.02% of the consolidated total assets, and total liabilities amounted to NT$476,899 thousand, constituting 21.82% of the consolidated total liabilities as at March 31, 2024, and the total comprehensive income amounted to NT$108,726 thousand, constituting 22.65% of the consolidated total comprehensive income for the three months then ended.

Except for the adjustments to the consolidated financial statements, if any, as might have been determined to be necessary had the financial statements of an insignificant consolidated subsidiary and the information disclosed in Note 13, as mentioned in the basis for the qualified conclusion for the first quarter financial statements of 2024, been reviewed by independent auditors as described in the Basis for qualified conclusion section above, based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as at March 31, 2025 and 2024, and of its consolidated financial performance and its consolidated cash flows for the three months then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, "Interim Financial Reporting" that came into effect as endorsed by the Financial Supervisory Commission.

Hsu, Huei-Yu

Independent Accountants

Tien, Chung-Yu

PricewaterhouseCoopers, Taiwan Republic of China

May 9, 2025

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

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

NANTEX INDUSTRY CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

MARCH 31, 2025, DECEMBER 31, 2024 AND MARCH 31, 2024

(Expressed in thousands of New Taiwan dollars)

NANTEX INDUSTRY CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

MARCH 31, 2025, DECEMBER 31, 2024 AND MARCH 31, 2024

(Expressed in thousands of New Taiwan dollars)

March 31, 2025 December 31, 2024 March 31, 2024

Liabilities and Equity Notes AMOUNT % AMOUNT % AMOUNT %

NANTEX INDUSTRY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME THREE MONTHS ENDED MARCH 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars, expect for earnings per share amounts)

Three months ended March 31

2025 2024

Items Notes AMOUNT % AMOUNT %

NANTEX INDUSTRY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY THREE MONTHS ENDED MARCH 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

Equity attributable to owners of the parent

Share capital Capital Surplus Retained Earnings Other equity interest

Unrealised gains (losses) from financial assets

Changes in ownership interest

Unappropriated

Financial statements translation

differences of

measured at fair value through other comprehensive

Non-controlling

Notes Common stock of subsidiaries Legal reserve Special reserve retained earnings foreign operations income Total interest Total equity

Three months ended March 31, 2024

Three months ended March 31, 2025

NANTEX INDUSTRY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

Three months ended March 31

NANTEX INDUSTRY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

Three months ended March 31

Notes 2025 2024

CASH FLOWS FROM INVESTING ACTIVITIES

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

NANTEX INDUSTRY CO., LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

THREE MONTHS ENDED MARCH 31, 2025 AND 2024

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

1. HISTORY AND ORGANISATION

   1. NANTEX INDUSTRY CO., LTD. (the "Company") was incorporated as a company limited by shares under the provisions of the Company Act of the Republic of China (R.O.C.) on January 10, 1979. The Company and its subsidiaries (collectively referred herein as the "Group") are primarily engaged in the manufacture, processing and sales of various types of latex, rubber and related products.

   2. The common shares of the Company have been listed on the Taiwan Stock Exchange since October 27, 1992.

2. THE DATE OF AUTHORISATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORISATION

   These consolidated financial statements were authorised for issuance by the Board of Directors on May 9, 2025.

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:

      Effective date by International Accounting

      New Standards, Interpretations and Amendments Standards Board ("IASB") Amendments to IAS 21, 'Lack of exchangeability' January 1, 2025

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

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

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

      New Standards, Interpretations and Amendments Effective date by IASB

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

      January 1, 2026

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

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

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

      New Standards, Interpretations and Amendments Effective date by IASB

      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'

      Amendments to IFRS 10 and IAS 28, 'Sale or contribution of assets between an investor and its associate or joint venture'

      January 1, 2026

      January 1, 2026 To be determined by

      IASB

      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

      IFRS 18, 'Presentation and disclosure in financial statements' January 1, 2027 IFRS 19, 'Subsidiaries without public accountability: disclosures' January 1, 2027 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 Group's financial condition and financial performance based on the Group'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 adopted are consistent with Note 4 of the consolidated financial statements for the year ended December 31, 2024, except for the compliance statement, basis of preparation and basis of consolidation as set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

   1. Compliance statement

      1. The consolidated financial statements of the Group have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Accounting Standard 34, 'Interim financial reporting' that came into effect as endorsed by the FSC.

      2. The consolidated financial statements of the Group should be read together with the consolidated financial statements for the year ended December 31, 2024.

   2. Basis of preparation

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

         1. Financial assets at fair value through profit or loss.

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

         3. Defined benefit assets or liabilities recognised 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 Group's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5, 'Critical accounting judgements, estimates and key sources of assumption uncertainty'.

   3. Basis of consolidation

      1. Basis for preparation of consolidated financial statements:

         The basis for preparation of these consolidated financial statements is consistent with those for the preparation of consolidated financial statements for the year ended December 31, 2024.

      2. Subsidiaries included in the consolidated financial statements:

         Ownership (%)

         Name of investor Name of subsidiary Business activities			March 31, 2025	December 31, 2024	Note
         NANTEX	INTERMEDIUM	General	100.00%	100.00%	-
         INDUSTRY CO.,	INTERNATIONAL	investments
         LTD.	LIMITED
         	Nanmat Technology	CVD materials and	41.00%	41.00%	(Note)
         	Co., Ltd.	metal surface
         		treatment
         INTERMEDIUM	Zhenjiang Nantex	chemicals Manufacture and	100.00%	100.00%	-
         INTERNATIONAL	Chemical Industry	sales of rubber
         LIMITED	Co., Ltd.	and latex
         				Ownership (%)
         				March 31,
         Name of investor Name of subsidiary Business activities 2024 Note
         NANTEX	INTERMEDIUM	General	100.00%		-
         INDUSTRY CO.,	INTERNATIONAL	investments
         LTD.	LIMITED
         	Nanmat Technology	CVD materials and	41.00%		(Note)
         	Co., Ltd.	metal surface
         		treatment
         INTERMEDIUM	Zhenjiang Nantex	chemicals Manufacture and	100.00%		-
         INTERNATIONAL	Chemical Industry	sales of rubber
         LIMITED	Co., Ltd.	and latex

         Note :The Group held a relative majority interest in Nanmat Technology Co., Ltd. and a relative majority of the seats in the company's Board of Directors. Based on the comprehensive assessment, the Group has the right to govern the entity's financial or operating policies. Accordingly, the entity was included in the consolidated financial statements.

      3. Subsidiaries not included in the consolidated financial statements: None.

      4. Adjustments for subsidiaries with different balance sheet dates: None.

      5. Significant restrictions: None.

      6. Subsidiaries that have non-controlling interests that are material to the Group:

         As of March 31, 2025, December 31, 2024, and March 31, 2024, the non-controlling interest were NT$1,406,781, NT$1,318,661 and NT$1,158,807, respectively. Information on the subsidiary that has non-controlling interest that is significant to the Group is as follows:

         Non-controlling interest

         Principal March 31, 2025 December 31, 2024

         Name of

         place of

         Ownership

         Ownership

         subsidiary business Amount (%) Amount (%) Nanmat

         Technology

         Co., Ltd. Taiwan

         $1,406,781

         59.00%

         $ 1,318,661

         59.00%

         Name of

         Principal place of

         Non-controlling interest

         March 31, 2024

         Ownership

         subsidiary business Nanmat

         Technology

         Amount (%)

         Co., Ltd. Taiwan

         Summary of financial information of subsidiary:

         $ 1,158,807

         59.00%

         Balance sheets

         Nanmat Technology Co., Ltd.

         March 31, 2025 December 31, 2024 March 31, 2024

         Current Assets		$ 1,987,383 $	1,914,933		$ 1,578,346
         Non-current Assets		986,173	927,411		862,632
         Current Liabilities	(	535,462) (	558,805)	(	415,458)

         Non-current Liabilities ( 53,720) ( 48,521) ( 61,440)

         Total net assets

         $ 2,384,374

         $ 2,235,018

         $ 1,964,080

         Statements of comprehensive Income

         Three months ended March 31,

         2025 2024
         Revenue	$ 600,268		$ 508,058
         Profit for the period	$ 149,355		$ 108,726
         Other comprehensive (loss) income	-		-
         Total comprehensive income	$ 149,355		$ 108,726
         Dividends paid to non-controlling interest (Note)	$ -		$ -
         (Note) Declared as unpaid.
         Statements of cash flows
         Three months ended March 31, 2025 2024
         Net cash provided by operating activities		$ 59,067	$ 111,854
         Net cash used in investing activities	(	171,931) (	56,762)
         Net cash provided by financing activities		18,131	5,881
         (Decrease) increase in cash and cash equivalents	(	94,733)	60,973
         Cash and cash equivalents, beginning of period		699,442	315,418
         Cash and cash equivalents, end of period		$ 604,709	$ 376,391

   4. Employee benefits

      Pension cost for the interim period is calculated on a year-to-date basis by using the pension cost rate derived from the actuarial valuation at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant curtailments, settlements, or other significant one-off events. Also, the related information is disclosed accordingly.

   5. Income tax

      The interim period income tax expense is recognised based on the estimated average annual effective income tax rate expected for the full financial year applied to the pretax income of the interim period, and the related information is disclosed accordingly.

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY

   There have been no significant changes during the period. Refer to Note 5 of the consolidated financial statements for the year ended December 31, 2024.

6. DETAILS OF SIGNIFICANT ACCOUNTS

   1. Cash and cash equivalents

      March 31, 2025		December 31, 2024		March 31, 2024
      Cash: Cash on hand $	353	$	352	$	352
      Checking accounts and demand deposits 1,868,662		2,026,528		1,994,675
      	1,869,015	2,026,880		1,995,027
      Cash equivalents: Time deposits	8,059,507	8,192,536		6,716,622
      	$ 9,928,522	$ 10,219,416		$ 8,711,649

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

      2. As of March 31, 2025, December 31, 2024 and March 31, 2024, the Group's time deposits maturing in excess of three months and within one year were classified as current financial assets at amortised cost.

      3. The Group classified cash and cash equivalents pledged as collateral as 'Current financial assets at amortised cost'.

   2. Current financial assets at fair value through profit or loss

      	March 31, 2025	December 31, 2024	March 31, 2024
      Financial assets mandatorily
      measured at fair value
      Beneficiary certificates	$ 30,000	$ 30,000	$ 30,000
      Valuation adjustment	-	30	150
      	$ 30,000	$ 30,030	$ 30,150

      1. For the three months ended March 31, 2025 and 2024, the Group recognised net loss from changes in fair values in the amount of $30 and $－, respectively (listed as 'Other gains and losses').

      2. The Group has no financial assets at fair value through profit or loss pledged to others as of March

         31, 2025, December 31, 2024 and March 31, 2024.

   3. Current financial assets at amortised cost

      March 31, 2025 December 31, 2024 March 31, 2024

      Time deposits maturing over three	$ 515,609	$ 421,716	$ 1,495,510
      months Time deposits pledged	4,000	4,000	4,000
      	$ 519,609	$ 425,716	$ 1,499,510

      1. The Group recognised interest income in profit or loss in relation to financial assets at amortised cost in the amount of $4,674 and $20,890 for the three months ended March 31, 2025 and 2024, respectively.

      2. As of March 31, 2025, December 31, 2024 and March 31, 2024, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at amortised cost held by the Group was the carrying amount.

      3. As of March 31, 2025, December 31, 2024 and March 31, 2024, the Group's financial assets at amortised cost pledged to others as collateral are provided in Note 8, 'Pledged assets'.

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

         March 31, 2025 $ 124,788	December 31, 2024 $ 149,134	March 31, 2024 $ 117,985
         $ 839,812	$ 996,796	$ 793,450
         ( 753)	( 897)	( 495)
         $ 839,059	$ 995,899	$ 792,955

   4. Notes and accounts receivable, net

      Notes receivable

      Accounts receivable Less: Loss allowance

      1. The ageing analysis of notes receivable and accounts receivable is as follows:

         March 31, 2025 December 31, 2024

         	Accounts receivable	Notes receivable	Accounts receivable	Notes receivable
         Not past due	$ 617,717	$ 124,788	$ 775,114	$ 149,134
         Less than 90 days	199,695	-	221,376	-
         Over 90 days	22,400	-	306	-
         	$ 839,812	$ 124,788	$ 996,796	$ 149,134
         			March 31, 2024 Accounts Notes
         			receivable	receivable
         Not past due			$ 683,537	$ 117,985
         Less than 90 days			109,828	-
         Over 90 days			85	-
         			$ 793,450	$ 117,985
         The above ageing analysis was based on past due date.

      2. As of March 31, 2025, December 31, 2024 and March 31, 2024, the balance of notes receivable and accounts receivable were all from contracts with customers. As of January 1, 2024, the balance of receivables from contracts with customers amounted to $827,868.

      3. As of March 31, 2025, December 31, 2024 and March 31, 2024, the Group held building and structures as security for notes and accounts receivable.

      4. Without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk was the carrying amount.

      5. Information relating to credit risk of notes and accounts receivable is provided in Note 12(2), 'Financial instruments'.

   5. Inventories

      March 31, 2025 Allowance for

      	Cost	market price decline	Book value
      Merchandise	$ 3,350	($ 723)	$ 2,627
      Raw materials	885,488	( 18,546)	866,942
      Supplies	65,933	( 71)	65,862
      Work in progress	142,962	( 3,304)	139,658
      Finished goods	911,401	( 26,017)	885,384
      	$ 2,009,134	($ 48,661)	$ 1,960,473

      December 31, 2024 Allowance for

      	Cost	market price decline	Book value
      Merchandise	$ 2,667	($ 724)	$ 1,943
      Raw materials	865,758	( 19,015)	846,743
      Supplies	61,608	( 71)	61,537
      Work in progress	170,294	( 3,304)	166,990
      Finished goods	649,296	( 26,281)	623,015
      	$ 1,749,623	($ 49,395)	$ 1,700,228

      	Cost	market price decline	Book value
      Merchandise	$ 2,522	($ 697)	$ 1,825
      Raw materials	589,572	( 24,560)	565,012
      Supplies	53,926	( 71)	53,855
      Work in progress	163,823	( 10,991)	152,832
      Finished goods	710,607	( 29,467)	681,140
      	$ 1,520,450	($ 65,786)	$ 1,454,664

      March 31, 2024 Allowance for

      The cost of inventories recognised as expense for the period:

      Three months ended March 31,

      		2025		2024
      Cost of goods sold		$ 1,729,137		$ 1,691,128
      Loss on physical inventory		3,490		275
      Revenue from sale of scraps	(	3,299)	(	3,943)
      Reversal of provision for inventory market price
      decline (Note)	( 734)		( 4,426)
      	$ 1,728,594		$ 1,683,034

      (Note) For the three months ended March 31, 2025 and 2024, the Group reversed a previous inventory write-down which was accounted for as reduction of cost of goods sold because the inventories which were previously provided with allowance were subsequently used and sold.

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

      	March 31, 2025	December 31, 2024	March 31, 2024
      Equity instruments Listed stocks	$ 139,259	$ 139,259	$ 125,435
      Unlisted stocks	301,871	300,110	296,821
      	441,130	439,369	422,256
      Valuation adjustment	198,582	169,951	173,814
      	$ 639,712	$ 609,320	$ 596,070

      1. The Group has elected to classify equity investments that are considered to be strategic investments and steady dividend income as financial assets at fair value through other comprehensive income. The fair value of such investments was equivalent to its book value as at March 31, 2025, December 31, 2024 and March 31, 2024.

      2. 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:

         Three months ended March 31,

         2025 2024

         Equity instruments at fair value through other comprehensive income

         Fair value change recognised in other comprehensive income

         $ 28,631

         ($ 15,051)

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

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

   7. Property, plant and equipment

      At January 1, 2025

      Unfinished

      Buildings Machinery construction Land and and Leasehold Other and equipment

      Land improvements structures equipment improvements equipment under acceptance Total

      Cost

      $ 461,888 $

      18,474

      $ 1,890,189

      $ 6,127,734 $

      7,960

      $ 831,219 $

      175,676

      $ 9,513,140

      Accumulated depreciation -

      ( 17,867) ( 1,308,776) ( 4,972,834) ( 6,619) ( 630,895)

      - ( 6,936,991)

      Three months ended March 31, 2025

      $ 461,888

      $ 607

      $ 581,413

      $ 1,154,900

      $ 1,341

      $ 200,324

      $ 175,676

      $ 2,576,149

      At January 1

      $ 461,888 $

      607 $

      581,413

      $ 1,154,900 $

      1,341

      $ 200,324 $

      175,676

      $ 2,576,149

      Additions - cost - - 2,030 11,950 - 7,672 13,129 34,781

      Transferred after acceptance

      inspection - 950 - 19,981 - - ( 20,931) -

      Disposal - cost - - - (

      1,654)

      - ( 2,267)

      - ( 3,921)

      - accumulated depreciation	-	-		-		1,599	-		2,249	-		3,848
      Depreciation	-	( 107)	(	13,123)	(	43,968)	( 183)	(	13,819)	-	(	71,200)
      Net exchange differences	-	-		3,732		10,521	-		778	252		15,283
      At March 31	$ 461,888	$ 1,450		$ 574,052		$ 1,153,329	$ 1,158		$ 194,937	$ 168,126		$ 2,554,940
      At March 31, 2025
      Cost	$ 461,888	$ 19,424		$ 1,902,795		$ 6,208,618	$ 7,960		$ 839,721	$ 168,126		$ 9,608,532
      Accumulated depreciation	-	( 17,974) ( 1,328,743) ( 5,055,289) ( 6,802) ( 644,784)								-	( 7,053,592)
      	$ 461,888	$ 1,450 $ 574,052 $ 1,153,329 $ 1,158 $ 194,937								$ 168,126	$ 2,554,940

      At January 1, 2024

      Unfinished

      Buildings Machinery construction Land and and Leasehold Other and equipment

      Land improvements structures equipment improvements equipment under acceptance Total

      Cost

      $ 461,888 $

      18,474

      $ 1,831,145

      $ 6,105,323 $

      7,960

      $ 829,991 $

      131,801

      $ 9,386,582

      Accumulated depreciation - ( 17,193) ( 1,242,637) ( 4,889,756) ( 5,888) ( 597,172) - ( 6,752,646)

      $ 461,888 $ 1,281 $ 588,508 $ 1,215,567 $ 2,072 $ 232,819 $ 131,801 $ 2,633,936

      Three months ended March 31, 2024

      At January 1

      $ 461,888 $

      1,281 $

      588,508

      $ 1,215,567 $

      2,072

      $ 232,819 $

      131,801

      $ 2,633,936

      Additions - cost - - 1,151 8,317 - 7,896 6,169 23,533

      Transferred after acceptance

      inspection - - 138 4,536 - - ( 4,674) -

      Disposal - cost - - - (

      23,469)

      - ( 4,031)

      - ( 27,500)

      - accumulated depreciation	-	-	-		23,399	-		3,959	-		27,358
      Depreciation	-	( 218)	( 12,367)	(	45,663)	( 183)	(	13,504)	-	(	71,935)
      Reclassification (Note)	-	-	-		1,045	-	(	7,719)	-	(	6,674)
      Net exchange differences	-	-	5,475		14,910	-		1,228	106		21,719
      At March 31	$ 461,888	$ 1,063	$ 582,905		$ 1,198,642	$ 1,889		$ 220,648	$ 133,402		$ 2,600,437
      At March 31, 2024
      Cost	$ 461,888	$ 18,474	$ 1,846,662		$ 6,163,756	$ 7,960		$ 831,325	$ 133,402		$ 9,463,467
      Accumulated depreciation	-	( 17,411) ( 1,263,757) ( 4,965,114) ( 6,071) ( 610,677)							-	( 6,863,030)
      	$ 461,888	$ 1,063 $ 582,905 $ 1,198,642 $ 1,889 $ 220,648							$ 133,402	$ 2,600,437

      (Note) Transferred from other equipment to machinery and equipment and other non-current assets in the amount of $640 and $7,079, respectively, and transferred from other non-current assets to machinery and equipment in the amount of $405.

      1. The Group has not capitalised any interest for the three-month periods ended March 31, 2025 and 2024.

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

   8. Leasing arrangements－lessee

      1. The Group leases various assets including land, buildings, machinery and equipment and business vehicles. Rental contracts are typically made for periods of 1 to 50 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes.

      2. The carrying amount of right-of-use assets and the depreciation charge are as follows:

         	March 31, 2025	December 31, 2024	March 31, 2024
         	Carrying Amount	Carrying Amount	Carrying Amount
         Land	$ 62,266	$ 63,093	$ 65,673
         Buildings	36,648	37,676	40,760
         Machinery and equipment	103,519	110,481	130,255
         Transportation equipment
         (Business vehicles) 507		688	1,336
         $ 202,940		$ 211,938	$ 238,024
         Three months ended March 31,
         		2025	2024
         		Depreciation charge	Depreciation charge
         Land		$ 1,402	$ 1,445
         Buildings		1,028	1,028
         Machinery and equipment		6,950	7,108
         Transportation equipment (Business vehicles)		193	252
         		$ 9,573	$ 9,833

      3. For the three months ended March 31, 2025 and 2024, the additions to right-of-use assets were $-and $2,624, respectively.

      4. The information on profit and loss accounts relating to lease contracts is as follows:

         Three months ended March 31,

         	2025	2024
         Items affecting profit or loss
         Interest expense on lease liabilities Expense on short-term lease or leases of	$ 941	$ 1,117
         low-value assets	379	172

      5. For the three months ended March 31, 2025 and 2024, the Group's total cash outflow for leases were $10,309 and $10,364, respectively.

   9. Intangible assets

      Three months ended March 31, 2025

      Computer

      	Trademarks Patents Software	Total
      At January 1, 2025
      Cost	$ 1,613 $ 1,011 $ 20,939 $	23,563
      Accumulated amortisation	( 1,239) ( 575) ( 10,952) (	12,766)
      Net exchange differences	- - ( 62) (	62)
      Net value	$ 374 $ 436 $ 9,925 $	10,735
      Three months ended March 31, 2025
      At January 1	$ 374 $ 436 $ 9,925 $	10,735
      Additions - acquired separately	41 - -	41
      Amortisation	( 119) ( 59) ( 589) (	767)
      Net exchange differences	- - 134	134

      At March 31	$ 296		$ 377		$ 9,470		$ 10,143
      At March 31, 2025 Cost	$ 1,654		$ 1,011		$ 20,939		$ 23,604

      Accumulated amortisation	(		1,358) (	634) (		11,541) (		13,533)
      Net exchange differences			-	-		72		72
      Net value	$		296 $	377 $		9,470 $		10,143

      Three months ended March 31, 2024

      Computer

      Trademarks Patents Software Total

      At January 1, 2024
      Cost	$ 1,637 $	960		$ 19,755		$ 22,352
      Accumulated amortisation	(	1,053) (	514) (	9,285) (			10,852)
      Net exchange differences		-	- (	403) (			403)
      Net value	$	584	$ 446	$ 10,067	$		11,097
      Three months ended March 31, 2024
      At January 1	$	584	$ 446	$ 10,067	$		11,097
      Additions - acquired separately		-	51	106			157
      Disposal - cost	(	26)	-	-	(		26)
      - accumulated amortisation		26	-	-			26
      Amortisation	( 123) (	61) (		516) (		700)
      Net exchange differences	-	-		222		222
      At March 31	$ 461	$ 436		$ 9,879		$ 10,776
      At March 31, 2024
      Cost	$ 1,611	$ 1,011		$ 19,861		$ 22,483
      Accumulated amortisation	(	1,150) (	575) (	9,801) (		11,526)
      Net exchange differences		-	- (	181) (		181)
      Net value	$	461 $	436	$ 9,879		$ 10,776

      Details of amortisation on intangible assets are as follows:

      	2025		2024
      Operating costs	$ 132		$ 131
      Selling expenses	84		127
      General and administrative expenses	520		409
      Research and development expenses	31		33
      	$ 767		$ 700
      Short-term borrowings
      Type of borrowings	March 31, 2025	Interest rate range	Collateral
      Bank borrowings
      Unsecured borrowings	$ 70,000	1.86%～1.92%	None
      Type of borrowings	December 31, 2024	Interest rate range	Collateral
      Bank borrowings
      Unsecured borrowings	$ 110,000	1.86%～1.92%	None
      Type of borrowings	March 31, 2024	Interest rate range	Collateral
      Bank borrowings
      Unsecured borrowings	$ 70,000	1.72%～1.77%	None

      Three months ended March 31,

   10. ​

       For the three months ended March 31, 2025 and 2024, the Group recognised interest expense in profit or loss. Refer to Note 6(21) for details.

   11. Other payables

       	March 31, 2025	December 31, 2024	March 31, 2024
       Wages and salaries payable	$ 209,867	$ 401,385	$ 219,916
       Employees' compensation and directors' remuneration payable	24,715	42,100	24,295
       Payables on equipment	6,682	3,391	7,448
       Dividends payable	492,417	-	492,417
       Others	213,346	260,488	198,291
       	$ 947,027	$ 707,364	$ 942,367

   12. Long-term borrowings

       Borrowing period Interest

       Type of borrowings and repayment term March 31, 2025 rate Collateral Installment-repayment

       borrowings

       Unsecured borrowings Borrowing period is from March 1, 2024 to March 1, 2027; interest is	$ 32,000	1.79%～ None 1.97%
       repayable monthly;
       principal is repayable
       quarterly from June 3,
       2024 Less: Current portion	( 14,000)
       	$ 18,000
       Borrowing period		Interest
       Type of borrowings and repayment term	December 31, 2024	rate	Collateral
       Installment-repayment borrowings
       Unsecured borrowings Borrowing period is from	$ 22,500	2.01%	None
       March 1, 2024 to March

       1, 2027; interest is repayable monthly; principal is repayable quarterly from June 3,

       2024 Less: Current portion	( 10,000)
       	$ 12,500
       Borrowing period
       Type of borrowings and repayment term	March 31, 2024	rate	Collateral
       Installment-repayment borrowings
       Unsecured borrowings Borrowing period is from	$ 30,000	1.79%	None
       March 1, 2024 to March

       Less: Current portion

       1, 2027; interest is repayable monthly; principal is repayable quarterly from June 1, 2024

       ( 10,000)

       $ 20,000

       For the three months ended March 31, 2025 and 2024, the Group recognised interest expenses in profit or loss. Refer to Note 6(21) for details.

   13. Pensions

       1. The Company and its domestic subsidiary have a defined benefit pension plan in accordance with the Labor Standards Act, covering all regular employees' service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Labor Standards Act. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. However, those who were mandatorily retired because injury at work will receive 20% in addition. The Company and its domestic subsidiary contribute monthly an amount equal to 2%～9% of the employees' monthly salaries and wages to the

          retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent

          retirement fund committee. Also, the Company and its domestic subsidiary would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company and its domestic subsidiary will make contributions for the deficit by next March. The relevant information is as follows:

          1. For the aforementioned pension plan, the Group recognised pension (revenue) costs of ($586) and $159 for the three months ended March 31, 2025 and 2024, respectively.

          2. Expected contributions to the defined benefit pension plan of the Group for the next year amount to $3,990.

       2. Effective July 1, 2005, the Company and its domestic subsidiary have established a defined contribution pension plan (the "New Plan") under the Labor Pension Act (the "Act"), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company and its domestic subsidiary contribute monthly an amount of no less than 6% of the employees' monthly salaries and wages to the employees' individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment. The pension costs under the defined contribution pension plan of the Group for the three months ended March 31, 2025 and 2024 were $4,005 and $3,956, respectively.

       3. The Company's mainland China subsidiary, Zhenjiang Nantex Chemical Industry, Ltd., has a defined contribution plan. Monthly contributions to an independent fund administered by the government in accordance with the pension regulations in the People's Republic of China (P.R.C.) are based on 20% of employees' monthly salaries and wages. Other than the monthly contributions, this subsidiary has no further obligations. The pension costs under the defined contribution pension plan of this subsidiary for the three months ended March 31, 2025 and 2024 were $5,418 and $5,238, respectively.

   14. Share capital

       1. Movements in the number of the Company's ordinary shares outstanding are as follows (in thousands of shares):

          Three months ended March 31,

          2025 2024

          Beginning and ending balance 492,417 492,417

       2. As of March 31, 2025, the Company's authorised capital was $6,000,000, and the paid-in-capital was $4,924,167, consisting of 492,417 thousand shares, with a par value of $10 (in dollars) per share. All proceeds from shares issued have been collected.

   15. Capital surplus

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

   16. Retained earnings

       1. Pursuant to the amended R.O.C. Company Act, the current year's after-tax earnings should be used initially to cover any accumulated deficit; thereafter 10% of the remaining earnings should be set aside as legal reserve until the balance of legal reserve is equal to that of paid-in capital. The legal reserve shall be exclusively used to cover accumulated deficit, to issue new stocks, or to distribute cash to shareholders in proportion to their share ownership. The use of legal reserve for the issuance of stocks or cash dividends to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company's paid-in capital.

       2. Since the Company is in a changeable industry environment tied with international macroeconomics and the Company is in the mature stage, the appropriation of earnings should consider fund requirements and capital budget to decide how much earnings will be kept or distributed and how much cash dividends will be distributed. According to the Company's Articles of Incorporation, 10% of the annual net income, after offsetting any loss of prior years and paying all taxes and dues, shall be set aside as legal reserve. The remaining net income and the unappropriated retained earnings from prior years can be distributed in accordance with a resolution passed during a meeting of the Board of Directors and approved at the stockholders' meeting. Of the amount to be distributed by the Company, stockholders' dividends shall comprise at least 20% of the unappropriated retained earnings, and the percentage of cash dividends shall not be less than 30% of dividends distributed. Based on the regulation, the Board of Directors of the Company shall adopt a special resolution to distribute whole or a part of the dividends in the

          form of cash and report to the stockholders, which is not applicable to the aforementioned provisions that are subject to stockholders' resolutions.

       3. Special reserve

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

          2. The amount previously set aside by the Company as special reserve on initial application of IFRSs in accordance with Order No. Financial-Supervisory-Securities-Corporate-1090150022, dated March 31, 2021 was $430,099, which shall be reversed proportionately when the relevant assets are used, disposed of or reclassified subsequently.

       4. The Company recognised cash dividends distributed to owners amounting to $492,417 ($1.0 (in dollars) per share) for the year ended December 31, 2024. On March 7, 2025, the Board of Directors proposed for the distribution of cash dividends of $492,417 ($1.0 (in dollars) per share) from the 2024 earnings, which has not yet been distributed (listed as 'Other payable').

   17. Operating revenue

       1. Disaggregation of revenue from contracts with customers

          Details of the Group's revenue from the transfer of goods at a point in time are as follows:

          Three months ended March 31, 2025

          	NANTEX	INTERMEDIUM	NANMAT	Total
          Revenue from latex products	$ 646,871	$ 44,514	$ -	$ 691,385
          Revenue from rubber products	225,175	754,383	-	979,558
          Organic-inorganic materials	-	-	599,619	599,619
          Others	-	-	649	649
          	$ 872,046	$ 798,897	$ 600,268	$ 2,271,211
          Three months ended March 31, 2024
          	NANTEX	INTERMEDIUM	NANMAT	Total
          Revenue from latex products	$ 657,652	$ 75,976	$ -	$ 733,628
          Revenue from rubber products	225,048	713,948	-	938,996
          Organic-inorganic materials	-	-	483,521	483,521
          Others	-	-	24,537	24,537
          	$ 882,700	$ 789,924	$ 508,058	$ 2,180,682

       2. Contract liabilities

          1. On March 31, 2025, December 31, 2024 and March 31, 2024, the Group has recognised the revenue-related contract liabilities amounting to $40,242, $43,198 and $38,565, respectively.

          2. On January 1, 2025 and 2024, the contract liabilities were $43,198 and $46,392, respectively, and the contract liabilities at the beginning of 2025 and 2024 of $28,676 and $36,404 were recognised as revenue for the three months ended March 31, 2025 and 2024, respectively.

   18. Interest income

       Three months ended March 31,

       2025		2024
       Interest income from bank deposits Interest income from financial assets at	$ 92,003		$ 95,988
       amortised cost	4,674		20,890
       	$ 96,677		$ 116,878

   19. Other income

       Three months ended March 31,

       	2025			2024
       Other income	$	1,572		$	2,097

   20. Other gains and losses

Three months ended March 31, 2025 2024

Interest expense Bank loans Lease liabilities

1. Expenses by nature

   Three months ended March 31, 2025

   	Operating cost	Operating expense	Total
   Employee benefits expense	$ 100,038	$ 170,956	$ 270,994
   Depreciation	57,019	23,754	80,773
   Amortisation	132	635	767
   	$ 157,189	$ 195,345	$ 352,534

   Three months ended March 31, 2024

   	Operating cost	Operating expense	Total
   Employee benefits expense	$ 97,482	$ 164,018	$ 261,500
   Depreciation	57,707	24,061	81,768
   Amortisation	131	569	700
   	$ 155,320	$ 188,648	$ 343,968

2. Employee benefits expense

   Three months ended March 31, 2025

   	Operating cost	Operating expense	Total
   Salaries and wages	$ 80,904	$ 129,543	$ 210,447
   Labor and health insurance
   expenses	8,309	7,732	16,041
   Pension costs	5,376	3,461	8,837
   Other personnel expenses	5,449	30,220	35,669
   	$ 100,038	$ 170,956	$ 270,994
   Three months ended March 31, 2024
   	Operating	Operating
   	cost	expense	Total
   Salaries and wages	$ 79,188	$ 124,641	$ 203,829
   Labor and health insurance
   expenses	8,001	7,447	15,448
   Pension costs	5,114	4,239	9,353
   Other personnel expenses	5,179	27,691	32,870
   	$ 97,482	$ 164,018	$ 261,500

   1. Under the Articles of Incorporation of the Company, a ratio of distributable profit of the current year, after covering accumulated losses, shall be distributed as employees' compensation and directors' remuneration. The ratio shall not be lower than 2% for employees' compensation and shall not be higher than 3% for directors' remuneration.

   2. For the three months ended March 31, 2025 and 2024, the Company's employees' compensation was accrued at $3,150 and $2,940, respectively; while directors' remuneration was accrued at

      $4,725 and $4,410, respectively. The aforementioned amounts were recognised in salary expenses and other expenses. The expenses recognised for the three months ended March 31, 2025 and 2024 were accrued based on the earnings of current period and the percentage specified in the Articles of Incorporation of the Company. The employees' compensation and directors' remuneration for 2024 as resolved by the Board of Directors amounted to $42,172. The difference of $72 between the amount resolved at the Board meeting and the amount recognised in the 2024 financial statements of $42,100 had been adjusted in profit or loss for 2025.

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

3. Income tax

   1. Income tax expense

      Three months ended March 31,

      	2025	2024
      Current tax:
      Current tax on profits for the period	$ 19,313	$ 137,379
      Prior year income tax (over) under estimation	( 4,734)	3,154
      Total current tax	14,579	140,533
      Deferred tax:
      Origination and reversal of temporary differences	56,100	26,115
      Income tax expense	$ 70,679	$ 166,648

      B .The income tax returns of the Company and subsidiaries through 2023 have been assessed and approved by the Tax Authority. The Company and subsidiaries do not have any administrative remedy as of May 9, 2025.

4. Earnings per share

Three months ended March 31, 2025

Weighted average number Earnings of shares outstanding per share

Amount after tax (shares in thousands) (in dollars)