Nantex Industry Co LtdTWSE: 2108

Consolidated financial statements 2025q3

· Issued by Nantex Industry Co Ltd
NANTEX INDUSTRY CO., LTD. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REVIEW REPORT SEPTEMBER 30, 2025 AND 2024

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

INDEPENDENT AUDITORS' REVIEW REPORT TRANSLATED FROM CHINESE

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

Introduction

We have reviewed the accompanying consolidated balance sheets of NANTEX INDUSTRY CO., LTD. and subsidiaries (the "Group") as at September 30, 2025 and 2024, and the related consolidated statements of comprehensive income for the three months and nine months then ended, as well as the related consolidated statements of changes in equity and of cash flows for the nine 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.

Scope of review

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.

Basis for qualified conclusion on the third quarter financial statements of 2024

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$2,582,670 thousand, constituting 14.71% of the consolidated total assets, and total liabilities amounted to NT$511,252 thousand, constituting 25.92% of the consolidated total liabilities as at September 30, 2024, and the total comprehensive income amounted to NT$134,472 thousand and NT371,673 thousand, constituting 104.03% and 39.99% of the consolidated total comprehensive income for the three months and nine months then ended, respectively.

Unmodified conclusion and Qualified conclusion

Except for the adjustments to the consolidated financial statements, if any, as might have been determined to be necessary had the 2024 third quarter financial statements of an insignificant consolidated subsidiary and the information disclosed in Note 13, 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 September 30, 2025 and 2024, and of its consolidated financial performance for the three months and nine months then ended and its consolidated cash flows for the nine 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

November 7, 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

SEPTEMBER 30, 2025, DECEMBER 31, 2024 AND SEPTEMBER 30, 2024

(Expressed in thousands of New Taiwan dollars)

September 30, 2025

December 31, 2024

September 30, 2024

Assets Notes AMOUNT %

AMOUNT %

AMOUNT %

Current assets

1100

Cash and cash equivalents

6(1)

$ 10,133,166

57

$ 10,219,416

56

$ 7,985,492

45

1110

Current financial assets at fair

value through profit or loss

6(2)

30,150

-

30,030

-

30,000

-

1136

Current financial assets at

amortised cost

6(1)(3) and 8

394,842

2

425,716

2

1,728,264

10

1150

Notes receivable, net

6(4)

117,134

1

149,134

1

152,335

1

1170

Accounts receivable, net

6(4)

795,079

4

995,899

6

984,072

6

1200

Other receivables

43,298

-

62,078

-

124,266

1

1220

Current income tax assets

104,495

1

-

-

-

-

130X

Inventories

6(5)

1,460,184

8

1,700,228

9

1,773,709

10

1410

Prepayments

378,001

2

364,339

2

496,581

3

11XX

Total current assets

13,456,349

75

13,946,840

76

13,274,719

76

1517

Non-current assets

Non-current financial assets at

6(6)

fair value through other

comprehensive income

605,060

4

609,320

4

636,616

3

1600

Property, plant and equipment

6(7) and 8

2,570,221

15

2,576,149

14

2,583,822

15

1755

Right-of-use assets

6(8) and 7

183,750

1

211,938

1

221,668

1

1780

Intangible assets

6(9)

9,125

-

10,735

-

9,824

-

1840

Deferred income tax assets

6(25)

14,177

-

18,175

-

29,094

-

1915

Prepayments for equipment

186,333

1

124,479

1

112,290

1

1920

Guarantee deposits paid

8

682

-

683

-

682

-

1975

Net defined benefit asset

240,778

1

238,442

1

178,920

1

1990

Other non-current assets

569,770

3

513,807

3

507,646

3

15XX

Total non-current assets

4,379,896

25

4,303,728

24

4,280,562

24

1XXX

Total assets

$ 17,836,245

100

$ 18,250,568

100

$ 17,555,281

100

(Continued)

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

SEPTEMBER 30, 2025, DECEMBER 31, 2024 AND SEPTEMBER 30, 2024

(Expressed in thousands of New Taiwan dollars)

September 30, 2025 December 31, 2024 September 30, 2024

Liabilities and Equity Notes AMOUNT % AMOUNT % AMOUNT %

Current liabilities

2100

Short-term borrowings

6(10)

$ 390,000

2

$ 110,000

1

$ 60,000

-

2130

Current contract liabilities

6(18)

62,064

1

43,198

-

89,041

1

2170

Accounts payable

296,060

2

423,557

2

450,605

3

2200

Other payables

6(11) and 7

593,889

3

707,364

4

607,843

3

2230

Current income tax liabilities

51,483

-

283,639

2

197,308

1

2280

Current lease liabilities

7

37,022

-

36,298

-

36,003

-

2320

Long-term liabilities, current

6(12) and 8

portion

14,000

-

10,000

-

10,000

-

21XX

Total current liabilities

1,444,518

8

1,614,056

9

1,450,800

8

Non-current liabilities

2540

Long-term borrowings

6(12) and 8

11,000

-

12,500

-

15,000

-

2570

Deferred income tax liabilities

6(25)

423,699

2

376,034

2

339,382

2

2580

Non-current lease liabilities

7

123,965

1

149,799

1

159,050

1

2640

Net defined benefit liabilities

3,280

-

6,083

-

7,919

-

25XX

Total non-current

liabilities

561,944

3

544,416

3

521,351

3

2XXX

Total liabilities

2,006,462

11

2,158,472

12

1,972,151

11

Equity

Equity attributable to owners of

parent

Share capital

6(14)(15)

3110

Common stock

4,924,167

28

4,924,167

27

4,924,167

28

Capital surplus

6(15)(16)

3200

Capital surplus

41,565

-

29,204

-

29,204

-

Retained earnings

6(17)

3310

Legal reserve

2,681,888

15

2,620,943

14

2,620,943

15

3320

Special reserve

433,442

2

433,442

2

433,442

2

3350

Unappropriated retained

earnings

6,042,427

34

6,314,514

35

6,093,820

35

Other equity interest

3400

Other equity interest

6(6)

(

212,437)(

1)

451,165

3

259,417

2

31XX

Total equity attributable to

owners of the parent

13,911,052

78

14,773,435

81

14,360,993

82

36XX

Non-controlling interest

4(3)

1,918,731

11

1,318,661

7

1,222,137

7

3XXX

Total equity

15,829,783

89

16,092,096

88

15,583,130

89

Significant contingent liabilities

7 and 9

and unrecognised contract

commitments

3X2X

Total liabilities and equity

$ 17,836,245

100

$ 18,250,568

100

$ 17,555,281

100

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

NANTEX INDUSTRY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024

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

Three months ended September 30 Nine months ended September 30

2025

2024

2025

2024

Items

Notes AMOUNT %

AMOUNT %

AMOUNT %

AMOUNT %

4000

Operating revenue

6(18)

$ 2,343,199

100

$ 3,147,077

100

$ 7,240,874

100

$ 8,388,525

100

5000

Operating costs

6(5)(9)(13)(23

)(24)

(

1,808,722) ( 77) (

2,540,609) ( 81) (

5,691,382) ( 79) (

6,721,764) ( 80)

5900

Net operating margin

534,477 23

606,468 19

1,549,492 21

1,666,761 20

Operating expenses

6(9)(13)(23)(2

6100

Selling expenses

4) and 12

(

131,154) (

6) (

197,745) (

6) (

390,489) (

5) (

464,874) (

5)

6200

General and administrative expenses

(

214,913) (

9) (

190,899) (

6) (

590,650) (

8) (

556,327) (

7)

6300

Research and development expenses

(

28,645) (

1) (

26,618) (

1) (

74,862) (

1) (

76,688) (

1)

6450

Expected credit impairment

gain (loss)

78 -

69 -

245 - (

150) -

6000

Total operating expenses

(

374,634) ( 16) (

415,193) ( 13) (

1,055,756) ( 14) (

1,098,039) ( 13)

6900

Operating profit

159,843

7

191,275

6

493,736

7

568,722

7

Non-operating income and

7100

expenses

Interest income

6(3)(19)

77,951

3

107,250

4

270,196

4

339,768

4

7010

Other income

6(6)(20)

6,758

-

9,608

-

21,095

-

38,123

-

7020

Other gains and losses

6(2)(21) and

12

19,024

1

(

21,668) (

1) (

93,034) (

1)

45,306

1

7050

Finance costs

6(22) and 7

(

1,326)

-

(

1,444)

- (

4,064)

-

4,486)

-

7000

Total non-operating income and expenses

102,407

4

93,746

3

194,193

3

418,711

5

7900

Profit before income tax

262,250

11

285,021

9

687,929

10

987,433

12

7950 Income tax expense 6(25)

(

73,734) ( 3) (

81,608) ( 3) (

188,141) ( 3) (

379,393) ( 5)

8200

Profit for the period

$ 188,516

8

$ 203,413

6

$ 499,788

7

$ 608,040

7

Other comprehensive income (loss)

Components of other comprehensive income (loss)

that will not be reclassified to profit or loss

(

8316 Unrealised income on financial 6(6) assets measured at fair value

through other comprehensive

income

$ 6,984

-

$ 59,916

2 $

5,545

-

$ 11,612

-

Components of other comprehensive income (loss) that will be reclassified to profit or loss

8361 Financial statements

translation differences of

foreign operations 369,314 16 ( 134,070) ( 4) ( 669,147) ( 9) 309,828 4

8300

Other comprehensive income

(loss) for the period

$ 376,298

16

( $

74,154) (

2)

( $

663,602) (

9)

$ 321,440

4

8500

Total comprehensive income

(loss) for the period

$ 564,814

24

$

129,259

4

( $

163,814) (

2)

$ 929,480

11

8610

Profit attributable to: Owners of the parent

$ 117,383

5

$

124,075

3

$

281,275

4

$ 388,753

5

8620

Non-controlling interest

71,133

3

79,338

3

218,513

3

219,287

2

Profit for the period

$ 188,516

8

$

203,413

6

$

499,788

7

$ 608,040

7

Comprehensive income (loss) attributable to:

8710

Owners of the parent

$ 493,681

21

$ 49,921

1

( $

382,327) (

5)

$ 710,193

8

8720

Non-controlling interest

71,133

3

79,338

3

218,513

3

219,287

3

Total comprehensive income

(loss) for the period

$ 564,814

24

$ 129,259

4

( $

163,814) (

2)

$ 929,480

11

9750

Earnings per share (in dollars) Basic

6(26)

$ 0.24

$ 0.25

$ 0.57

$ 0.79

9850

Diluted

$ 0.24

$ 0.25

$ 0.57

$ 0.79

NANTEX INDUSTRY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY NINE MONTHS ENDED SEPTEMBER 30, 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 from financial

Changes in ownership interest

Unappropriated

Financial

statements translation differences of

assets 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

Nine months ended September 30, 2024

Balance at January 1, 2024

$ 4,924,167

$ 28,939

$ 2,547,956

$ 433,442

$ 6,270,471

($

226,409 )

$ 164,386

$ 14,142,952

$ 1,094,658

$ 15,237,610

Profit for the period

-

-

-

-

388,753

-

-

388,753

219,287

608,040

Other comprehensive income for the period

6(6)

-

-

-

-

-

309,828

11,612

321,440

-

321,440

Total comprehensive income for the period

-

-

-

-

388,753

309,828

11,612

710,193

219,287

929,480

Distribution of 2023 net income:

Legal reserve

-

-

72,987

- (

72,987 )

-

-

-

-

-

Cash dividends

6(17)

-

-

-

- (

492,417 )

-

- (

492,417 )

-

(

492,417 )

Changes in equity of associates and joint ventures accounted for using equity method

-

265

-

-

-

-

-

265

-

265

Changes in non-controlling interests

-

-

-

-

-

-

-

- (

91,808 )

(

91,808 )

Balance at September 30, 2024

$ 4,924,167

$ 29,204

$ 2,620,943

$ 433,442

$ 6,093,820

$

83,419

$ 175,998

$ 14,360,993

$ 1,222,137

$ 15,583,130

Nine months ended September 30, 2025

Balance at January 1, 2025

$ 4,924,167

$ 29,204

$ 2,620,943

$ 433,442

$ 6,314,514

$ 307,218

$ 143,947

$ 14,773,435

$ 1,318,661

$ 16,092,096

Profit for the period

-

-

-

-

281,275

-

-

281,275

218,513

499,788

Other comprehensive income (loss) for the period

6(6)

-

-

-

-

-

( 669,147 )

5,545

(

663,602 )

-

(

663,602 )

Total comprehensive income (loss) for the period

-

-

-

-

281,275

( 669,147 )

5,545

(

382,327 )

218,513

(

163,814 )

Distribution of 2024 net income:

Legal reserve

-

-

60,945

- (

60,945 )

-

-

-

-

-

Cash dividends

6(17)

-

-

-

- (

492,417 )

-

-

(

492,417 )

-

(

492,417 )

Changes in equity of associates and joint ventures accounted for using equity method

6(15)

-

12,361

-

-

-

-

-

12,361

17,788

30,149

Changes in non-controlling interests

-

-

-

-

-

-

-

-

363,769

363,769

Balance at Sepember 30, 2025

$ 4,924,167

$ 41,565

$ 2,681,888

$ 433,442

$ 6,042,427

($ 361,929 )

$ 149,492

$ 13,911,052

$ 1,918,731

$ 15,829,783

NANTEX INDUSTRY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

Nine months ended September 30

Notes 2025

2024

CASH FLOWS FROM OPERATING ACTIVITIES

Profit before tax

$ 687,929

$ 987,433

Adjustments

Adjustments to reconcile profit (loss)

(Gains) losses on valuation of financial assets at fair value through profit or loss

6(2)(21)

(

120 )

150

Expected credit impairment (gain) loss

12

(

245 )

150

Reversal of provision for inventory market price decline

6(5)

(

182 )

(

28,775 )

Depreciation

6(7)(8)(23)

258,945

249,427

Losses on disposals of property, plant and equipment

6(21)

2,861

14,726

Amortisation

6(9)(23)

1,960

1,805

Interest income

6(19)

(

270,196 )

(

339,768 )

Dividend income

6(6)(20)

(

10,509 )

(

21,906 )

Gain from lease modification

6(8)(21)

-

(

3 )

Interest expense

6(22)

4,064

4,486

Unrealised exchange loss

Compensation cost recognized in employee stock options

6(15)(24)

-

28,894

25,525

-

Changes in operating assets and liabilities Changes in operating assets

Notes receivable

32,000

(

31,390 )

Accounts receivable

201,092

(

277,929 )

Other receivables

16,206

(

47,134 )

Inventories

240,226

(

412,081 )

Prepayments

(

13,662 )

(

201,920 )

Net defined benefit assets

(

2,336 )

(

32 )

Other non-current assets

Changes in operating liabilities Current contract liabilities

(

53,118 )

18,866

10,693

42,649

Accounts payable

(

127,497 )

193,956

Other payables

(

109,917 )

(

59,050 )

Net defined benefit liabilities

( 2,803 )

725

Cash inflow generated from operations

902,458

111,737

Interest received

272,770

309,647

Dividends received

10,509

21,906

Interest paid

( 4,032 )

( 4,422 )

Income tax paid

( 473,129 )

( 312,634 )

Net cash flows from operating activities

708,576

126,234

(Continued)

NANTEX INDUSTRY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

Nine months ended September 30

Notes 2025

2024

CASH FLOWS FROM INVESTING ACTIVITIES

Cash paid for acquisition of current financial assets

at amortised cost

($ 407,500 )

($ 2,888,678 )

Proceeds from disposal of current financial assets at

amortised cost

438,374

3,219,364

Acquisition of financial assets at fair value through

other comprehensive income

-

(

13,824 )

Cash paid for acquisition of property, plant and

6(27)

equipment

(

117,163 )

(

64,793 )

Proceeds from disposal of property, plant and

equipment

576

2,365

Increase in intangible assets

6(9)

(

716 )

(

158 )

Increase in prepayments for equipment

(

216,112 )

(

129,647 )

Decrease in guarantee deposits paid

1

2,663

Increase in other non-current assets

(

2,845 )

(

972 )

Net cash flows (used in) from investing

activities

(

305,385 )

126,320

CASH FLOWS FROM FINANCING ACTIVITIES

Increase (decrease) in short-term borrowings

6(28)

280,000

(

120,000 )

Payment of lease liabilities

6(28)

(

27,144 )

(

26,905 )

Increase in long-term borrowings

6(28)

12,000

30,000

Decrease in long-term borrowings

6(28)

(

9,500 )

(

17,500 )

Payment of cash dividends

6(17)

(

492,417 )

(

492,417 )

Increase (decrease) in non-controlling interest

363,769

(

91,808 )

Net cash flows from (used in) financing

activities

126,708

(

718,630 )

Effect of foreign exchange rate changes

(

616,149 )

198,100

Net decrease in cash and cash equivalents

(

86,250 )

(

267,976 )

Cash and cash equivalents at beginning of period

6(1)

10,219,416

8,253,468

Cash and cash equivalents at end of period

6(1)

$ 10,133,166

$ 7,985,492

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

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

NINE MONTHS ENDED SEPTEMBER 30, 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 November 7, 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 2026 are as follows:

      New Standards, Interpretations and Amendments Effective date by IASB

      Specific provisions of 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'

      January 1, 2026

      January 1, 2026

      IFRS 17, 'Insurance contracts' January 1, 2023

      Amendments to IFRS 17, 'Insurance contracts' January 1, 2023

      Amendment to IFRS 17, 'Initial application of IFRS 17 and IFRS 9 －

      comparative information'

      January 1, 2023

      Annual Improvements to IFRS Accounting Standards－Volume 11 January 1, 2026

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

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

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

      New Standards, Interpretations and Amendments Effective date by IASB

      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 IASB

      IFRS 18, 'Presentation and disclosure in financial statements' January 1, 2027 (Note)

      IFRS 19, 'Subsidiaries without public accountability: disclosures' January 1, 2027

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

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

      IFRS 18, 'Presentation and disclosure in financial statements'

      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

        September 30,

        2025

        December 31,

        2024

        Note

        NANTEX

        INTERMEDIUM

        General investments

        100.00%

        100.00%

        -

        INDUSTRY CO.,

        INTERNATIONAL

        LTD.

        LIMITED

        Nanmat Technology

        CVD materials and

        41.00%

        41.00%

        (Note)

        Co., Ltd.

        metal surface

        treatment

        chemicals

        INTERMEDIUM

        Zhenjiang Nantex

        Manufacture and

        100.00%

        100.00%

        -

        INTERNATIONAL

        Chemical Industry

        sales of rubber

        LIMITED

        Co., Ltd.

        and latex

        Ownership (%) September 30,

        Name of investor Name of subsidiary Business activities 2024 Note

        NANTEX

        INDUSTRY CO., LTD.

        INTERMEDIUM

        INTERNATIONAL LIMITED

        General investments

        100.00%

        -

        Nanmat Technology

        CVD materials and

        41.00%

        (Note)

        Co., Ltd.

        metal surface

        treatment

        chemicals

        INTERMEDIUM

        Zhenjiang Nantex

        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 September 30, 2025, December 31, 2024, and September 30, 2024, the non-controlling interest were NT$1,918,731, NT$1,318,661 and NT$1,222,137, respectively. Information on the subsidiary that has non-controlling interest that is significant to the Group is as follows:

        Non-controlling interest

        September 30, 2025 December 31, 2024

        Principal place

        Ownership

        Ownership

        Name of subsidiary of business Amount (%) Amount (%) Nanmat Technology

        Co., Ltd. Taiwan

        $ 1,918,731

        59.00%

        $ 1,318,661

        59.00%

        Principal place

        Name of subsidiary of business Nanmat Technology

        Non-controlling interest

        September 30, 2024

        Ownership

        Amount (%)

        Co., Ltd. Taiwan

        $ 1,222,137

        59.00%

        Summary of financial information of subsidiary:

        Balance sheets

        Nanmat Technology Co., Ltd. September 30, 2025 December 31, 2024 September 30, 2024

        Current Assets

        $ 2,636,671 $

        1,914,933 $

        1,675,888

        Non-current Assets 1,137,478 927,411 906,782

        Current Liabilities

        ( 526,622) (

        558,805) (

        457,417)

        Non-current Liabilities ( 41,354) ( 48,521) ( 53,835)

        Total net assets

        $ 3,206,173

        $ 2,235,018

        $ 2,071,418

        Statements of comprehensive Income

        Three months ended September 30,

        2025

        2024

        Revenue

        $ 670,691

        $ 612,816

        Profit for the period

        Other comprehensive income

        $ 120,564

        -

        $ 134,472

        -

        Total comprehensive income

        $ 120,564

        $ 134,472

        Dividends paid to non-controlling interest

        $ 153,651

        $ 92,191

        Statements of comprehensive Income

        Nine months ended September 30,

        2025

        2024

        Revenue

        $ 1,905,686

        $ 1,677,126

        Profit for the period

        Other comprehensive income

        $ 370,361

        -

        $ 371,673

        -

        Total comprehensive income

        $ 370,361

        $ 371,673

        Dividends paid to non-controlling interest

        $ 153,651

        $ 92,191

        Statements of cash flows

        Nine months ended September 30,

        2025

        2024

        Net cash provided by operating activities

        $ 87,804

        $ 348,187

        Net cash (used in) provided by investing activities

        (

        251,664)

        796

        Net cash provided by (used in) financing activities

        841,448

        ( 24,414)

        Increase in cash and cash equivalents

        677,588

        324,569

        Cash and cash equivalents, beginning of period

        699,442

        315,418

        Cash and cash equivalents, end of period

        $ 1,377,030

        $ 639,987

    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

      September 30, 2025

      December 31, 2024

      September 30, 2024

      Cash:

      Cash on hand

      $ 342

      $ 352

      $ 353

      Checking accounts and demand

      deposits 2,773,160

      2,026,528

      1,902,501

      2,773,502

      2,026,880

      1,902,854

      Cash equivalents:

      Time deposits

      7,359,664

      8,192,536

      6,082,638

      $ 10,133,166

      $ 10,219,416

      $ 7,985,492

      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 September 30, 2025, December 31, 2024 and September 30, 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

      September 30, 2025

      December 31, 2024

      September 30, 2024

      Financial assets mandatorily

      measured at fair value

      Beneficiary certificates

      $ 30,000

      $ 30,000

      $ 30,000

      Valuation adjustment

      150

      30

      -

      $ 30,150

      $ 30,030

      $ 30,000

      1. For the three months and nine months ended September 30, 2025 and 2024, the Group recognised net gain (loss) from changes in fair values in the amount of $120, ($60), $120 and ($150), respectively. The Group recognised gain from the distribution of investment income in the amount of $299, $－, $899 and $590, 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

        September 30, 2025, December 31, 2024 and September 30, 2024.

    3. Current financial assets at amortised cost

      September 30, 2025 December 31, 2024 September 30, 2024

      Time deposits maturing over three

      $ 387,842

      $ 421,716

      $ 1,724,264

      months

      Time deposits pledged

      7,000

      4,000

      4,000

      $ 394,842

      $ 425,716

      $ 1,728,264

      1. The Group recognised interest income in profit or loss in relation to financial assets at amortised cost in the amount of $2,280, $20,461, $13,324 and $58,234 for the three months and nine months ended September 30, 2025 and 2024, respectively.

      2. As of September 30, 2025, December 31, 2024 and September 30, 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 September 30, 2025, December 31, 2024 and September 30, 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.

    4. Notes and accounts receivable, net

      Notes receivable

      September 30, 2025

      $ 117,134

      December 31, 2024

      $ 149,134

      September 30, 2024

      $ 152,335

      Accounts receivable

      $ 795,461

      $ 996,796

      $ 984,852

      Less: Loss allowance

      ( 382)

      ( 897)

      ( 780)

      $ 795,079

      $ 995,899

      $ 984,072

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

        September 30, 2025 December 31, 2024 Accounts Notes Accounts Notes

        receivable receivable receivable receivable

        $ 678,431

        $ 117,134

        $ 775,114

        $ 149,134

        116,968

        -

        221,376

        -

        62

        -

        306

        -

        $ 795,461

        $ 117,134

        $ 996,796

        $ 149,134

        Not past due Less than 90 days Over 91 days

        September 30, 2024

        Accounts

        receivable

        Notes

        receivable

        Not past due

        $ 744,504

        $ 152,335

        Less than 90 days

        240,232

        -

        Over 91 days

        116

        -

        $ 984,852

        $ 152,335

        The above ageing analysis was based on past due date.

      2. As of September 30, 2025, December 31, 2024 and September 30, 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 September 30, 2025, December 31, 2024 and September 30, 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

      September 30, 2025 Allowance for

      Cost

      market price decline

      Book value

      Merchandise

      $ 2,287

      ($ 723)

      $ 1,564

      Raw materials

      720,847

      ( 20,356)

      700,491

      Supplies

      60,958

      ( 71)

      60,887

      Work in progress

      158,048

      ( 3,304)

      154,744

      Finished goods

      567,257

      ( 24,759)

      542,498

      $ 1,509,397

      ($ 49,213)

      $ 1,460,184

      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

      September 30, 2024 Allowance for

      Cost

      market price decline

      Book value

      Merchandise

      $ 2,931

      ($ 697)

      $ 2,234

      Raw materials

      756,458

      ( 16,724)

      739,734

      Supplies

      64,573

      ( 71)

      64,502

      Work in progress

      182,698

      ( 3,788)

      178,910

      Finished goods

      808,486

      ( 20,157)

      788,329

      $ 1,815,146

      ($ 41,437)

      $ 1,773,709

      The cost of inventories recognised as expense for the period:

      Three months ended September 30,

      2025

      2024

      Cost of goods sold

      $ 1,809,116

      $ 2,549,380

      Loss on physical inventory

      833

      3,389

      Revenue from sale of scraps

      (

      1,069)

      (

      3,077)

      Reversal of allowance for inventory market price

      decline (Note)

      ( 158)

      ( 14,061)

      $ 1,808,722

      $ 2,535,631

      Nine months ended September 30,

      2025

      2024

      Cost of goods sold

      $ 5,695,323

      $ 6,719,060

      Loss on physical inventory

      4,218

      6,589

      Revenue from sale of scraps

      (

      7,977)

      (

      10,474)

      Reversal of allowance for inventory market price

      decline (Note)

      ( 182)

      ( 28,775)

      $ 5,691,382

      $ 6,686,400

      (Note) For the three months and nine months ended September 30, 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

      September 30, 2025

      December 31, 2024

      September 30, 2024

      Equity instruments Listed stocks

      $ 139,259

      $ 139,259

      $ 139,259

      Unlisted stocks

      290,305

      300,110

      295,355

      429,564

      439,369

      434,614

      Valuation adjustment

      175,496

      169,951

      202,002

      $ 605,060

      $ 609,320

      $ 636,616

      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 September 30, 2025, December 31, 2024 and September 30, 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 September 30,

        2025 2024

        Equity instruments at fair value through other comprehensive income

        Fair value change recognised in other comprehensive income

        Dividend income recognised in profit or loss held at end of period

        $ 6,984

        $ 4,785

        $ 59,916

        $ 5,346

        Equity instruments at fair value through other comprehensive income

        Fair value change recognised in other

        Nine months ended September 30,

        2025 2024

        comprehensive income

        Dividend income recognised in profit or loss held at end of period

        $ 5,545

        $ 10,509

        $ 11,612

        $ 21,906

      3. As of September 30, 2025, December 31, 2024 and September 30, 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.

        Buildings

        Machinery

        Unfinished construction

        Land

        and

        and

        Leasehold

        Other

        and equipment

        Land

        improvements

        structures

        equipment

        improvements

        equipment

        under acceptance

        Total

        At January 1, 2025

        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)

        $ 461,888

        $ 607

        $ 581,413

        $ 1,154,900

        $ 1,341

        $ 200,324

        $ 175,676

        $ 2,576,149

        Nine months ended September 30, 2025

        At January 1 $ 461,888

        $ 607

        $ 581,413

        $ 1,154,900

        $ 1,341

        $ 200,324

        $ 175,676

        $ 2,576,149

        Additions - cost -

        -

        14,032

        27,406

        -

        19,531

        53,859

        114,828

        inspection -

        1,250

        19,225

        147,158

        -

        5,572

        (

        173,205)

        -

        Transferred from prepayments

        for equipment

        -

        -

        117,201

        21,762

        -

        15,295

        -

        154,258

        Disposal - cost

        -

        - (

        5,975)

        (

        11,602)

        - (

        8,005)

        - (

        25,582)

        - accumulated depreciation

        -

        -

        5,392

        9,388

        -

        7,365

        -

        22,145

        Depreciation

        - (

        322) (

        48,846)

        (

        138,862)

        (

        549) (

        41,689)

        - (

        230,268)

        Net exchange differences

        -

        - ( 10,053) ( 28,244)

        - ( 2,117) ( 895)

        ( 41,309)

        At September 30

        $ 461,888

        $ 1,535 $ 672,389 $ 1,181,906

        $ 792 $ 196,276 $ 55,435

        $ 2,570,221

        At September 30, 2025

    7. Property, plant and equipment

      Transferred after acceptance

      Cost

      $ 461,888

      $

      19,724 $ 2,006,217 $ 6,176,547

      $

      7,960 $ 853,192 $

      55,435

      $ 9,580,963

      Accumulated depreciation

      -

      ( 18,189) ( 1,333,828) ( 4,994,641)

      ( 7,168) ( 656,916) -

      ( 7,010,742)

      $ 461,888

      $ 1,535 $ 672,389 $ 1,181,906

      $ 792 $ 196,276 $ 55,435

      $ 2,570,221

      Unfinished

      Buildings

      Machinery

      construction

      Land

      and

      and

      Leasehold

      Other

      and equipment

      Land

      improvements

      structures

      equipment

      improvements

      equipment

      under acceptance

      Total

      At January 1, 2024

      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

      Nine months ended September 30, 2024

      At January 1 $ 461,888

      $ 1,281

      $ 588,508

      $ 1,215,567

      $ 2,072

      $ 232,819

      $ 131,801

      $ 2,633,936

      Additions - cost -

      -

      3,191

      13,689

      -

      10,734

      30,692

      58,306

      inspection -

      -

      138

      4,536

      -

      -

      ( 4,674)

      -

      Transferred from prepayments

      for equipment

      -

      - 32,185

      62,245

      -

      24,935

      -

      119,365

      Disposal - cost

      -

      - -

      (

      189,262)

      - (

      26,366)

      - (

      215,628)

      - accumulated depreciation

      -

      -

      -

      174,111

      -

      24,426

      -

      198,537

      Depreciation

      -

      ( 522)

      (

      39,291)

      (

      138,820)

      ( 549)

      (

      41,190)

      -

      (

      220,372)

      Reclassification (Note)

      -

      -

      388

      1,314

      -

      (

      29,171)

      -

      (

      27,469)

      Net exchange differences

      -

      -

      9,329

      25,495

      -

      2,103

      220

      37,147

      At September 30

      $ 461,888

      $ 759

      $ 594,448

      $ 1,168,875

      $ 1,523

      $ 198,290

      $ 158,039

      $ 2,583,822

      At September 30, 2024

      Cost

      $ 461,888

      $ 18,474

      $ 1,891,497

      $ 6,115,005

      $ 7,960

      $ 819,069

      $ 158,039

      $ 9,471,932

      Accumulated depreciation

      -

      ( 17,715) ( 1,297,049) ( 4,946,130) ( 6,437) ( 620,779)

      -

      ( 6,888,110)

      $ 461,888

      $ 759 $ 594,448 $ 1,168,875 $ 1,523 $ 198,290

      $ 158,039

      $ 2,583,822

      Transferred after acceptance

      (Note) Transferred from other equipment to machinery and equipment and other non-current assets in the amount of $640 and $28,531, respectively, and transferred from other non-current assets to buildings and structures and machinery and equipment in the amount of $388 and $674, respectively.

      1. The Group has not capitalised any interest for the nine months ended September 30, 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:

        September 30, 2025

        December 31, 2024

        September 30, 2024

        Carrying Amount

        Carrying Amount

        Carrying Amount

        Land

        $ 57,380

        $ 63,093

        $ 64,628

        Buildings

        34,592

        37,676

        38,704

        Machinery and equipment

        89,594

        110,481

        117,444

        Transportation equipment

        (Business vehicles) 2,184

        688

        892

        $ 183,750

        $ 211,938

        $ 221,668

        Three months ended September 30,

        2025

        2024

        Depreciation charge

        Depreciation charge

        Land

        $ 1,381

        $ 1,401

        Buildings

        1,028

        1,029

        Machinery and equipment

        6,962

        6,959

        Transportation equipment (Business vehicles)

        177

        216

        $ 9,548

        $ 9,605

        Nine months ended September 30,

        2025

        2024

        Depreciation charge

        Depreciation charge

        Land

        $ 4,168

        $ 4,246

        Buildings

        3,084

        3,085

        Machinery and equipment

        20,887

        21,029

        Transportation equipment (Business vehicles)

        538

        695

        $ 28,677

        $ 29,055

      3. For the three months and nine months ended September 30, 2025 and 2024, the additions to right-of-use assets were $2,034, $1,325, $2,034 and $5,133, respectively.

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

        Three months ended September 30,

        2025

        2024

        Interest expense on lease liabilities

        $ 857

        $ 1,029

        Expense on short-term lease or leases of

        low-value assets

        326

        433

        Gain from lease modification

        -

        (

        3)

        Nine months ended September 30,

        2025

        2024

        Items affecting profit or loss

        Interest expense on lease liabilities Expense on short-term lease or leases of

        $ 2,685

        $ 3,208

        low-value assets

        1,092

        1,048

        Gain from lease modification

        - (

        3)

      5. For the nine months ended September 30, 2025 and 2024, the Group's total cash outflow for leases were $30,921 and $31,161, respectively.

    9. Intangible assets

      Nine months ended September 30, 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

      Nine months ended September 30, 2025

      At January 1

      $ 374

      $ 436

      $ 9,925

      $ 10,735

      Additions - acquired separately

      73

      -

      643

      716

      Amortisation

      (

      185) (

      59) (

      1,716) (

      1,960)

      Net exchange differences

      -

      -

      ( 366) ( 366)

      At September 30

      $ 262

      $ 377

      $ 8,486 $ 9,125

      At September 30, 2025

      Cost

      $ 1,686 $ 1,011 $ 21,582 $ 24,279

      Accumulated amortisation

      ( 1,424) ( 634) ( 12,668) ( 14,726)

      Net exchange differences

      - - ( 428) ( 428)

      Net value

      $ 262 $ 377 $ 8,486 $ 9,125

      Nine months ended September 30, 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

      Nine months ended September 30, 2024

      At January 1

      $ 584

      $ 446

      $ 10,067

      $ 11,097

      Additions - acquired separately

      -

      51

      107

      158

      Disposal - cost

      ( 26)

      -

      -

      ( 26)

      - accumulated amortisation

      26

      -

      -

      26

      Amortisation

      (

      195) (

      61) (

      1,549) (

      1,805)

      Net exchange differences

      -

      -

      374

      374

      At September 30

      $ 389

      $ 436

      $ 8,999

      $ 9,824

      At September 30, 2024

      Cost

      $ 1,611

      $ 1,011

      $ 19,862

      $ 22,484

      Accumulated amortisation

      ( 1,222) (

      575) (

      10,834) (

      12,631)

      Net exchange differences - - ( 29) ( 29)

      Net value

      $ 389

      $ 436

      $ 8,999

      $ 9,824

      Details of amortisation on intangible assets are as follows:

      Three months ended September 30,

      2025

      2024

      Operating costs

      $ 98

      $ 104

      Selling expenses

      -

      73

      General and administrative expenses

      503

      376

      Research and development expenses

      -

      -

      $ 601

      $ 553

      Nine months ended September 30,

      2025

      2024

      Operating costs

      $ 301

      $ 339

      Selling expenses

      85

      240

      General and administrative expenses

      1,515

      1,193

      Research and development expenses

      59

      33

      $ 1,960

      $ 1,805

    10. Short-term borrowings

      Type of borrowings

      September 30, 2025

      Interest rate range

      Collateral

      Bank borrowings Unsecured borrowings

      $ 390,000

      1.86%～1.88%

      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

      September 30, 2024

      Interest rate range

      Collateral

      Bank borrowings Unsecured borrowings

      $ 60,000

      1.83%～1.84%

      None

      For the three months and nine months ended September 30, 2025 and 2024, the Group recognised interest expense in profit or loss. Refer to Note 6(22) for details.

    11. Other payables

      September 30, 2025

      December 31, 2024

      September 30, 2024

      Wages and salaries payable

      $ 338,941

      $ 401,385

      $ 332,566

      Employees' compensation and directors' remuneration payable

      16,275

      42,100

      30,975

      Payables on equipment

      1,056

      3,391

      1,808

      Others

      237,617

      260,488

      242,494

      $ 593,889

      $ 707,364

      $ 607,843

    12. Long-term borrowings

      Borrowing period

      Interest

      Type of borrowings and repayment term

      September 30, 2025

      rate

      Collateral

      Installment-repayment borrowings

      Unsecured borrowings Borrowing period is from

      March 1, 2024 to March

      1, 2027; interest is

      $ 25,000

      1.97%～

      2.02%

      None

      repayable monthly;

      principal is repayable

      quarterly from June 3,

      2024

      Less: Current portion

      ( 14,000)

      $ 11,000

      Borrowing period Interest

      Type of borrowings and repayment term December 31, 2024 rate Collateral Installment-repayment

      borrowings

      Unsecured borrowings Borrowing period is from $

      March 1, 2024 to March

      1, 2027; interest is repayable monthly; principal is repayable quarterly from June 3, 2024

      22,500

      2.01% None

      Less: Current portion

      ( 10,000)

      $ 12,500

      Borrowing period Interest

      Type of borrowings and repayment term September 30, 2024 rate Collateral Installment-repayment

      borrowings

      Unsecured borrowings Borrowing period is from $

      March 1, 2024 to March

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

      25,000

      1.79% None

      Less: Current portion

      2024

      ( 10,000)

      $ 15,000

      For the three months and nine months ended September 30, 2025 and 2024, the Group recognised interest expenses in profit or loss. Refer to Note 6(22) 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 (benefit) costs of ($587),

          $103, ($1,759), and $420 for the three months and nine months ended September 30, 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 and nine months ended September 30, 2025 and 2024 were $4,126, $3,864, $12,373 and $11,733, 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 and nine months ended September 30, 2025 and 2024 were $5,349, $5,373, $15,624 and $15,950, respectively.

    14. Share capital

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

        Nine months ended September 30,

        2025 2024

        Beginning and ending balance 492,417 492,417

      2. As of September 30, 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. Share-based payment

      Cash capital increase reserved for employee preemption

      On August 1, 2025, the Board of Directors of the Group's subsidiary, Nanmat Technology Co., Ltd., resolved to increase its capital, of which 1,500 thousand shares were reserved for employee

      preemption. The grant date was set on August 1, 2025, and the subscription price was NT$108.91 (in dollars) per share. The subsidiary's compensation cost recognised for the cash capital increase reserved for employee preemption for the nine months ended September 30, 2025 was $28,894. The fair value of stock options on grant date is measured using the Black-Scholes option-pricing model. Relevant information is as follows:

      Nine months ended September 30, 2025

      Options outstanding at January 1

      Amounts

      (shares in thousands)

      -

      Exercise price

      (in dollars)

      $ -

      Options granted

      1,500

      90

      Options exercised

      ( 1,500)

      90

      Options outstanding at September 30

      -

      -

      Options exercisable at September 30

      -

      -

      There was no such situation for the nine months ended September 30, 2024.

      Grant date

      August 1, 2025

      Dividend yield

      0%

      Expected price volatility

      42.02%

      Risk-free interest rate

      1.215%

      Expected duration

      0.08 years

      Fair value in dollars (per share)

      $19.2626(in dollars)

    16. 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.

    17. 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 was reported to the shareholders during their meeting on May 26, 2025.

    18. 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 September 30, 2025

        NANTEX

        INTERMEDIUM

        NANMAT

        Total

        Revenue from latex products

        $ 538,303

        $ 50,848

        $ -

        $ 589,151

        Revenue from rubber products

        178,933

        904,423

        -

        1,083,356

        Organic-inorganic materials

        -

        -

        670,081

        670,081

        Others

        1

        -

        610

        611

        $ 717,237

        $ 955,271

        $ 670,691

        $ 2,343,199

        Three months ended September 30, 2024

        NANTEX

        INTERMEDIUM

        NANMAT

        Total

        Revenue from latex products

        $ 1,281,522

        $ 122,660

        $ -

        $ 1,404,182

        Revenue from rubber products

        204,009

        924,855

        -

        1,128,864

        Organic-inorganic materials

        -

        -

        607,079

        607,079

        Others

        1,217

        -

        5,735

        6,952

        $ 1,486,748

        $ 1,047,515

        $ 612,814

        $ 3,147,077

        Nine months ended September 30, 2025

        NANTEX

        INTERMEDIUM

        NANMAT

        Total

        Revenue from latex products

        $ 1,811,404

        $ 153,811

        $ -

        $ 1,965,215

        Revenue from rubber products

        610,776

        2,639,556

        -

        3,250,332

        Organic-inorganic materials

        -

        -

        1,903,530

        1,903,530

        Others

        31,736

        87,905

        2,156

        121,797

        $ 2,453,916

        $ 2,881,272

        $ 1,905,686

        $ 7,240,874

        Nine months ended September 30, 2024

        NANTEX

        INTERMEDIUM

        NANMAT

        Total

        Revenue from latex products

        $ 3,152,789

        $ 297,195

        $ -

        $ 3,449,984

        Revenue from rubber products

        650,561

        2,608,747

        -

        3,259,308

        Organic-inorganic materials

        -

        -

        1,617,542

        1,617,542

        Others

        2,109

        -

        59,582

        61,691

        $ 3,805,459

        $ 2,905,942

        $ 1,677,124

        $ 8,388,525

      2. Contract liabilities

        1. On September 30, 2025, December 31, 2024 and September 30, 2024, the Group has recognised the revenue-related contract liabilities amounting to $62,064, $43,198 and

          $89,041, 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 $1,114, $483 , $29,775 and

$37,908 were recognised as revenue for the three months and nine months ended September 30, 2025 and 2024, respectively.

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