Consolidated financial statements 2025q4

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.

NANTEX INDUSTRY CO., LTD.

Declaration of Consolidated Financial Statements of Affiliated Enterprises

For the year ended December 31, 2025, pursuant to Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises, the companies that are required to be included in the consolidated financial statements of affiliates, are the same as the Company required to be included in the consolidated financial statements under International Financial Reporting Standard 10. And if relevant information that should be disclosed in the consolidated financial statements of affiliates has all been disclosed in the consolidated financial statements of parent and subsidiary companies, it shall not be required to prepare consolidated financial statements of affiliates.

Hereby declare,

NANTEX INDUSTRY CO., LTD.

March 9, 2026

INDEPENDENT AUDITORS' REPORT TRANSLATED FROM CHINESE

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

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

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

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

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

Key audit matter for the Group's 2025 consolidated statements is stated as follows:

Description

Refer to Note 4(25) for accounting policies on revenue recognition. The Group is primarily engaged in the manufacture, processing and sales of various types of latex, rubbers and related products, and is involved in domestic and international sales. The net sales revenue in 2025 was NT$9,546,429 thousand. Since the export sales transactions are

numerous, accounting for 72% of the total net sales revenue, and the verification of transaction authenticity also takes a long time, we considered the existence of sales revenue recognition apart from Taiwan region a key audit matter.

How our audit addressed the matter

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

1. Obtained an understanding of the design of internal control system related to sales transaction process and tested the effectiveness of its operation.

2. Assessed basic information of the major customers apart from Taiwan region, including representative, registered address, actual business address and relationship, and assessed the reasonableness of transactions.

3. Selected samples of sales transactions and checked against related supportin g documentation, including customer orders, shipping orders, export declaration documents and subsequent cash collection.

We have audited and expressed an unmodified opinion on the parent company only financial statements of NANTEX INDUSTRY CO., LTD. as at and for the years ended December 31, 2025 and 2024.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Independent Accountants

Hsu, Huei-Yu Tien, Chung-Yu

PricewaterhouseCoopers, Taiwan Republic of China

March 9, 2026

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

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

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

DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

December 31, 2025 December 31, 2024

Assets Notes AMOUNT % AMOUNT %

(Continued)

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

DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

December 31, 2025 December 31, 2024

Liabilities and Equity Notes AMOUNT % AMOUNT %

NANTEX INDUSTRY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2025 AND 2024

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

Year ended December 31

2025 2024

8361 Financial statements translation differences of foreign operations

NANTEX INDUSTRY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

Equity attributable to owners of the parent

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

Year ended December 31, 2024

Balance at January 1, 2024 $ 4,924,167 $ 28,939 $ 2,547,956 $ 433,442 $ 6,270,471 ($ 226,409 )

Profit for the year - - - - 562,467 -

Year ended December 31, 2025

NANTEX INDUSTRY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

Year ended December 31

NANTEX INDUSTRY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

Year ended December 31

Notes 2025 2024

CASH FLOWS FROM INVESTING ACTIVITIES

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

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

YEARS ENDED DECEMBER 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 March 9, 2026.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

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

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

      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

      Amendments to IAS 21, 'Translation to a Hyperinflationary Presentation Currency

      January 1, 2027

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

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

      IFRS 18, 'Presentation and disclosure in financial statements'

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

4. SUMMARY OF MATERIAL ACCOUNTING POLICIES

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

   1. Compliance statement

      The consolidated financial statements of the Group have been prepared in accordance with the

      "Regulations Governing the Preparation of Financial Reports by Securities Issuers", International

      Financial Reporting Standards, International Accounting Standards, IFRIC® Interpretations, and SIC® Interpretations that came into effect as endorsed by the FSC (collectively referred herein as the "IFRSs").

   2. Basis of preparation

      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:

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

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

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

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

         5. When the Group loses control of a subsidiary, the Group remeasures any investment retained in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial

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

      2. Subsidiaries included in the consolidated financial statements:

         Ownership (%)

         Name of investor Name of subsidiary Business activities			December 31, 2025	December 31, 2024	Note
         NANTEX	INTERMEDIUM	General	100.00%	100.00%	-
         INDUSTRY CO.,	INTERNATIONAL	investments
         LTD.	LIMITED
         	Nanmat Technology	CVD materials and	40.57%	41.00%	(Note1)
         	Co., Ltd.	metal surface			(Note2)
         		treatment
         INTERMEDIUM	Zhenjiang Nantex	chemicals Manufacture and	100.00%	100.00%	-
         INTERNATIONAL	Chemical Industry	sales of rubber
         LIMITED	Co., Ltd.	and latex

         Note 1: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.

         Note 2:The subsidiary, Nanmat Technology Co., Ltd., increased its capital for the year ended December 31, 2025. As the Group did not acquire shares proportionately, the shareholding ratio was decreased from 41.00% to 40.57%. The Group recognised the adjustment of investments accounted for under equity method not acquired proportionately to shareholding ratio amounting to $9,856 (shown as contract account of 'capital surplus'). The related information is provided in Note 6(6) Investments accounted for under equity method of the parent company only 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 December 31, 2025 and 2024, the non-controlling interest were NT$ 2,043,519 and NT$1,318,661, respectively. Information on the subsidiary that has non-controlling interest that is significant to the Group is as follows:

         Non-controlling interest

         December 31, 2025 December 31, 2024

         Principal place

         Ownership

         Ownership

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

         Co., Ltd. Taiwan

         $ 2,043,519

         59.43%

         $ 1,318,661

         59.00%

         Summary of financial information of subsidiary:

         Balance sheets

         Nanmat Technology Co., Ltd.

         		December 31, 2025		December 31, 2024
         Current Assets		$ 2,771,994		$ 1,914,933
         Non-current Assets		1,301,417		927,411
         Current Liabilities	(	601,685)	(	558,805)
         Non-current Liabilities	(	33,195)	(	48,521)
         Total net assets		$ 3,438,531		$ 2,235,018
         Statements of comprehensive Income
         Years ended December 31,
         		2025		2024
         Revenue		$ 2,581,324		$ 2,354,249
         Profit for the year		$ 532,103		$ 536,831
         Other comprehensive income		1,688	(	1,557)
         Total comprehensive income		$ 533,791		$ 535,274
         Dividends paid to non-controlling interest		$ 153,651		$ 92,191
         Statements of cash flows
         Years ended December 31,
         	2025		2024
         Net cash provided by operating activities	$ 571,951		$ 717,521
         Net cash (used in) provided by investing activities	( 1,330,716)		( 162,086)
         Net cash provided by (used in) financing activities	644,318		( 171,411)
         (Decrease) increase in cash and cash equivalents	( 114,447)		384,024
         Cash and cash equivalents, beginning of year	699,442		315,418
         Cash and cash equivalents, end of year	$ 584,995		$ 699,442

   4. Foreign currency translation

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

      1. Foreign currency transactions and balances

         1. Foreign currency transactions are translated into the functional currency using the exchange

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

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

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

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

      2. Translation of foreign operations

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

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

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

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

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

   5. Classification of current and non-current items

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

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

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

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

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

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

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

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

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

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

   6. Cash equivalents

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

      2. Time deposits that meet the definition above and are held for the purpose of meeting short-term cash commitment in operations are classified as cash equivalents.

   7. Financial assets at fair value through profit or loss

      1. Financial assets at fair value through profit or loss are financial assets that are not measured at amortised cost or fair value through other comprehensive income.

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

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

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

   8. Financial assets at amortised cost

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

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

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

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

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

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

   9. Notes and accounts receivable

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

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

   10. Inventories

       Inventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted-average method. The cost of finished goods and work in process comprises raw materials, direct labour, other direct costs and related production overheads (allocated based on normal operating capacity). It excludes borrowing costs. The item by item approach is used in applying the lower of cost and net realisable value. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale. When the cost of inventory is higher than net realisable value, a write-down is provided and recognised in operating costs. If the circumstances that caused the write-down cease to exist, such that all or part of the write-down is no longer needed, it should be reversed to that extent and recognised as deduction of operating costs.

   11. Financial assets at fair value through other comprehensive income

       1. Financial assets at fair value through other comprehensive income comprise equity securities which are not held for trading, and for which the Group has made an irrevocable election at initial recognition to recognise changes in fair value in other comprehensive income.

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

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

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

   12. Impairment of financial assets

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

       do not contain a significant financing component, the Group recognises the impairment provision for lifetime ECLs.

   13. Derecognition of financial assets

       The Group derecognises a financial asset when one of the following conditions is met:

       1. The contractual rights to receive the cash flows from the financial asset expire.

       2. The contractual rights to receive cash flows of the financial asset have been transferred and the Group has transferred substantially all risks and rewards of ownership of the financial asset.

       3. The contractual rights to receive cash flows of the financial asset have been transferred and the Group has no retained control of the financial asset.

   14. Property, plant and equipment

       1. Aside from those assets which had been revaluated, property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalised.

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

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

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

          Assets Useful lives

          Land improvements	10	～	40	years
          Buildings and structures	3	～	65	years
          Machinery and equipment	2	～	33	years
          Leasehold improvements			10	years
          Other equipment	2	～	20	years

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

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

          term.

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

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

          1. The amount of the initial measurement of lease liability;

          2. Any lease payments made at or before the commencement date;

          3. Any initial direct costs incurred by the lessee; and

          4. An estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease.

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

   16. Intangible assets

       Trademarks, patent and computer software are stated initially at cost and amortised on a straight-line basis over its estimated economic life and term of operating agreements of 5 to 19 years..

   17. Impairment of non-financial assets

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

   18. Borrowings

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

       2. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the

          fee is deferred until the drawdown occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relates.

   19. Notes and accounts payable

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

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

   20. Derecognition of financial liabilities

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

   21. Employee benefits

       1. Short-term employee benefits

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

       2. Pensions

          1. Defined contribution plan

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

          2. Defined benefit plan

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

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

       3. Employees' compensation and directors' remuneration

          Employees' compensation and directors' remuneration are recognised as expenses and liabilities,

          provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates. If employee compensation is distributed by shares, the Group calculates the number of shares based on the closing price at the previous day of the board meeting resolution.

   22. Income tax

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

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

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

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

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

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

   23. Share capital

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

   24. Dividends

       Cash dividends are recorded as liabilities in the Company's financial statements in the period in which they are resolved by the Board of Directors. Stock dividends are recorded as stock dividends to be distributed in which they are resolved by the Company's shareholders, and are reclassified to ordinary shares on the effective date of new shares issuance.

   25. Revenue recognition

       1. Sales of goods

          1. Sales are recognised when control of the products has transferred, being when the products are delivered to the external customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer's acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, or the Group has objective evidence that all criteria for acceptance have been satisfied.

          2. Revenue is recognised based on the price specified in the contract, net of the estimated sales return and volume discounts. The products are often sold with volume discounts based on estimated sales of each year. Accumulated experience is used to estimate and provide for the sales discounts and volume discounts, using the expected value method, and revenue is only recognised to the extent that it is highly probable that a significant reversal will not occur. The estimation is subject to an assessment at each reporting date. The terms of receipt of sales transactions are consistent with market practice, the Group does not adjusted the transation price to reflect the time value of money.

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

       2. Incremental costs of obtaining a contract

          Given that the contractual period lasts less than one year, the Group recognises the incremental costs of obtaining a contract as an expense when incurred although the Group expects to recover those costs.

   26. Operating segments

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

       performance of the operating segments.

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF

   ASSUMPTION UNCERTAINTY

   The preparation of these consolidated financial statements requires management to make critical judgements in applying the Group's accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. Such assumptions and estimates do not have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

6. DETAILS OF SIGNIFICANT ACCOUNTS

   1. Cash and cash equivalents

      	December 31, 2025	December 31, 2024
      Cash:
      Cash on hand	$ 337	$ 352
      Checking accounts and demand deposits	1,806,354	2,026,528
      	1,806,691	2,026,880
      Cash equivalents:
      Time deposits	7,744,480	8,192,536
      	$ 9,551,171	$ 10,219,416

      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 December 31, 2025 and 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

      	December 31, 2025	December 31, 2024
      Financial assets mandatorily measured at fair value
      through profit or loss
      Beneficiary certificates	$ 41,760	$ 30,000
      Valuation adjustment	125	30
      	$ 41,885	$ 30,030

      1. For the years ended December 31, 2025 and 2024, the Group recognised net gain (loss) from changes in fair values in the amount of $95 and ($120), respectively. The Group recognised gain from the distribution of investment income in the amount of $1,192 and $1,144, 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

         December 31, 2025 and 2024.

   3. Current financial assets at amortised cost

      	December 31, 2025	December 31, 2024
      Time deposits maturing over three months	$ 1,504,882	$ 421,716
      Time deposits pledged	7,000	4,000
      	$ 1,511,882	$ 425,716

      1. The Group recognised interest income in profit or loss in relation to financial assets at amortised cost in the amount of $14,972 and $64,905 for the years ended December 31, 2025 and 2024, respectively.

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

      3. As of December 31, 2025 and 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	December 31, 2025 $ 136,834	December 31, 2024 $ 149,134
      Accounts receivable	$ 804,542	$ 996,796
      Less: Loss allowance	( 256)	( 897)
      	$ 804,286	$ 995,899

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

         December 31, 2025 December 31, 2024 Accounts Notes Accounts Notes

         receivable receivable receivable receivable

         $ 692,590	$ 136,834	$ 775,114	$ 149,134
         111,944	-	221,376	-
         8	-	306	-
         $ 804,542	$ 136,834	$ 996,796	$ 149,134

         Not past due Less than 90 days Over 91 days

         The above ageing analysis was based on past due date.

      2. As of December 31, 2025 and 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 December 31, 2025 and 2024, the Group both has no notes receivable and accounts receivable pledged to others as collateral.

      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

      December 31, 2025 Allowance for

      	Cost	market price decline	Book value
      Merchandise	$ 2,287	($ 586)	$ 1,701
      Raw materials	717,872	( 19,825)	698,047
      Supplies	65,145	( 82)	65,063
      Work in progress	164,105	( 3,427)	160,678
      Finished goods	416,271	( 24,729)	391,542
      	$ 1,365,680	($ 48,649)	$ 1,317,031

      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

      The cost of inventories recognised as expense for the year:

      Years ended December 31,

      2025 2024

      Cost of goods sold Reversal of allowance for inventory market price		$ 7,390,984	$ 9,095,213
      decline (Note)	(	746)	( 20,817)
      Loss on physical inventory		9,780	9,383
      Loss on inventory		-	21
      Revenue from sale of scraps	(	11,453)	( 14,151)
      Unallocated overhead expense		25,396	9,494
      		$ 7,413,961	$ 9,079,143

      (Note) For the years ended December 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

      December 31, 2025 December 31, 2024

      Equity instruments

      Listed stocks	$ 228,819	$ 139,259
      Unlisted stocks	294,432	300,110
      	523,251	439,369
      Valuation adjustment	153,099	169,951
      	$ 676,350	$ 609,320

      1. On December 30, 2025, the Group's subsidiary, Nanmat Technology Co., Ltd., invested in JITech Co., Ltd. for a total consideration of $89,560. The purpose of the subsidiary's investment was to strengthen the relationships with suppliers. The transfer of the equity instrument is restricted within two years.

      2. 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 December 31, 2025 and 2024.

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

         Years ended December 31,

         2025 2024

         Equity instruments at fair value through other comprehensive income

         Fair value change recognised in other comprehensive income

         Dividend income recognised in profit or loss

         ($ 16,852) ($ 20,439)

         held at end of year

         $ 10,509

         $ 21,906

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

      5. 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
         Year ended December 31, 2025
         At January 1 $ 461,888		$ 607	$ 581,413	$ 1,154,900		$ 1,341		$ 200,324	$ 175,676	$ 2,576,149
         Additions - cost -		-	60,192	50,866		-		47,264	70,492	228,814
         inspection -		1,250	19,225	147,439		-		5,572	( 173,486)	-
         Transferred from prepayments
         for equipment	-	-	86,889		31,763		-	2,812	-	121,464
         Disposal - cost	-	- (	5,975)	(	12,240)		- (	8,891)	- (	27,106)
         - accumulated depreciation	-	-	5,392		9,959		-	8,246	-	23,597
         Depreciation	- (	455) (	67,585)	(	188,694)	(	670) (	55,820)	- (	313,224)
         Net exchange differences	-	- ( 266)		1,033		- ( 48) ( 119)				600
         At December 31	$ 461,888	$ 1,402 $ 679,285		$ 1,195,026		$ 671 $ 199,459 $ 72,563				$ 2,610,294
         At December 31, 2025

   7. Property, plant and equipment

      Transferred after acceptance

      Cost	$ 461,888	$ 19,724 $ 2,051,433 $ 6,351,104 $ 7,960 $ 878,531 $ 72,563	$ 9,843,203
      Accumulated depreciation	-	( 18,322) ( 1,372,148) ( 5,156,078) ( 7,289) ( 679,072) -	( 7,232,909)
      	$ 461,888	$ 1,402 $ 679,285 $ 1,195,026 $ 671 $ 199,459 $ 72,563	$ 2,610,294

      										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
      Year ended December 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 -		-	3,772		21,204		-	14,713		61,706	101,395
      inspection -		-	679		11,795		-	5,600		( 18,074)	-
      Transferred from prepayments
      for equipment	-	-		32,185		75,853	-		31,895	-		139,933
      Disposal - cost	-	-	(	1)	(	197,368)	-	(	29,839)	-	(	227,208)
      - accumulated depreciation	-	-		1		181,857	-		27,629	-		209,487
      Depreciation	-	( 674)	(	52,575)	(	182,408)	( 731)	(	55,229)	-	(	291,617)
      Reclassification (Note)	-	-		387		5,298	-	(	29,171)	-	(	23,486)
      Net exchange differences	-	-		8,457		23,102	-		1,907	243		33,709
      At December 31	$ 461,888	$ 607		$ 581,413		$ 1,154,900	$ 1,341		$ 200,324	$ 175,676		$ 2,576,149
      At December 31, 2024
      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

      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 machinery and equipment and buildings and structures in the amount of $4,658 and $387, respectively.

      1. The Group has not capitalised any interest for the years ended December 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:

         	December 31, 2025	December 31, 2024
         	Carrying Amount	Carrying Amount
         Land	$ 57,533	$ 63,093
         Buildings	33,563	37,676
         Machinery and equipment	82,632	110,481
         Transportation equipment (Business vehicles)	2,007	688
         	$ 175,735	$ 211,938
         Years ended December 31,
         	2025	2024
         	Depreciation charge	Depreciation charge
         Land	$ 5,560	$ 5,647
         Buildings	4,113	4,113
         Machinery and equipment	27,849	27,991
         Transportation equipment (Business vehicles)	715	900
         	$ 38,237	$ 38,651

      3. For the years ended December 31, 2025 and 2024, the additions to right-of-use assets were $2,034 and $5,133, respectively.

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

         Years ended December 31,

         	2025	2024
         Items affecting profit or loss
         Interest expense on lease liabilities	$ 3,499	$ 4,196
         Expense on short-term lease or leases of low-value assets	1,426	1,496
         Gain from lease modification	-	3

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

         $41,204 and $41,550, respectively.

   9. Intangible assets

      Year ended December 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
      Year ended December 31, 2025
      At January 1	$ 374	$ 436	$ 9,925	$ 10,735
      Additions - acquired separately	83	-	1,142	1,225
      Disposal - cost	( 307)	-	-	( 307)
      - accumulated amortisation	307	-	-	307

      Amortisation

      ( 210) (

      59) (

      2,309) (

      2,578)

      Net exchange differences - -

      ( 20) ( 20)

      At December 31

      At December 31, 2025

      $ 247

      $ 377

      $ 8,738

      $ 9,362

      Cost	$ 1,389 $	1,011 $	22,081 $	24,481
      Accumulated amortisation	( 1,142) (	634) (	13,261) (	15,037)

      Net exchange differences - -

      ( 82) ( 82)

      Net value

      $ 247

      $ 377

      $ 8,738

      $ 9,362

      Year ended December 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
      Year ended December 31, 2024
      At January 1	$ 584	$ 446	$ 10,067	$ 11,097
      Additions - acquired separately	22	51	1,608	1,681

      Disposal - cost	(	46)	- (	424) (	470)
      - accumulated amortisation		46	-	424	470
      Amortisation	(	232) (	61) (	2,091) (	2,384)
      Net exchange differences	-		-	341	341
      At December 31	$ 374		$ 436	$ 9,925	$ 10,735
      At December 31, 2024
      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

      Details of amortisation on intangible assets are as follows:

      Years ended December 31,

      	2025	2024
      Operating costs	$ 402	$ 417
      Selling expenses	577	247
      General and administrative expenses	1,540	1,659
      Research and development expenses	59	61
      	$ 2,578	$ 2,384

   10. Short-term borrowings

       Type of borrowings December 31, 2025 Interest rate range Collateral Bank borrowings

       Unsecured borrowings

       $ 70,000

       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

       For the years ended December 31, 2025 and 2024, the Group recognised interest expense in profit or loss. Refer to Note 6(22) for details.

   11. Other payables

       	December 31, 2025	December 31, 2024
       Wages and salaries payable	$ 414,930	$ 401,385
       Employees' compensation and directors' remuneration payable	24,734	42,100
       Payables on equipment	7,272	3,391
       Others	266,467	260,488
       	$ 713,403	$ 707,364

   12. Long-term borrowings

       Borrowing period Interest

       Type of borrowings and repayment term December 31, 2025 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

       Secured borrowings Borrowing period is

       from March 18, 2025 to

       March 18, 2028; interest

       12,500

       2.02% None

       Land, Buildings and

       Less: Current portion

       is 9,000 1.95%

       21,500 ( 14,000)

       $ 7,500

       Borrowing period Interest

       structures

       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

       For the years ended December 31, 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. The amounts recognised in the balance sheet are as follows:

             December 31, 2025 December 31, 2024

             Present value of defined benefit obligations	($ 433,852)	($ 476,928)
             Fair value of plan assets	722,068	709,287
             Net defined benefit asset	$ 288,216	$ 232,359
             Net defined benefit asset	$ 288,584	$ 238,442
             Net defined benefit liability	( 368)	( 6,083)
             	$ 288,216	$ 232,359

          2. Movements in net defined benefit asset are as follows:

             Present value of

             Year ended defined benefit Fair value of Net defined

             December 31, 2025 obligations plan assets benefit asset

             At January 1 ($

             Current service cost (

             476,928) $

             1,403)

             709,287

             - (

             232,359

             1,403)

             Interest (expense) income (

             7,355)

             11,105 3,750

             (		485,686)	720,392		234,706
             Remeasurements:
             Return on plan assets		-	50,420		50,420
             (excluding amounts
             included in interest
             income or expense)
             Change in financial	(	7,490)	- (		7,490)
             assumptions
             Experience adjustments		6,209	-		6,209
             	(	1,281)	50,420		49,139
             Pension fund contribution		-	4,371		4,371
             Paid pension			53,115	( 53,115)	-
             At December 31	($		433,852)	$ 722,068	$ 288,216

             Present value of

             Year ended defined benefit Fair value of Net defined

             December 31, 2024 obligations plan assets benefit asset

             At January 1 ($

             Current service cost (

             516,454) $

             2,563)

             688,148

             - (

             171,694

             2,563)

             Interest (expense) income (

             5,727)

             7,720 1,993

             (		524,744)	695,868		171,124
             Remeasurements:
             Return on plan assets	-		63,000	63,000
             (excluding amounts
             included in interest
             income or expense)
             Change in demographic assumptions Change in financial	66 10,259		- -	66 10,259
             assumptions
             Experience adjustments	(	15,749)	-	(	15,749)
             	(	5,424)	63,000		57,576
             Pension fund contribution		-	3,659		3,659
             Paid pension		53,240 (	53,240)		-
             At December 31	($	476,928) $	709,287		$ 232,359

          3. The Bank of Taiwan was commissioned to manage the Fund of the Company's and domestic subsidiary's defined benefit pension plan in accordance with the Fund's annual investment and utilisation plan and the "Regulations for Revenues, Expenditures, Safeguard and Utilisation of the Labor Retirement Fund" (Article 6: The scope of utilisation for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-the-counter, or private placement equity securities, investment in domestic or foreign real estate securitization products, etc.). With regard to the utilisation of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings is less than aforementioned rates, government shall make payment for the deficit after being authorised by the Regulator. The Company and domestic subsidiary have no right to participate in managing and operating that fund and hence the Company and domestic subsidiary are unable to disclose the classification of plan assets fair value in accordance with IAS 19 paragraph

             142. The composition of fair value of plan assets as of December 31, 2025 and 2024 is given in the Annual Labor Retirement Fund Utilisation Report announced by the government.

          4. The principal actuarial assumptions used were as follows:

             Years ended December 31,

             2025 2024

             Discount rate 1.30% 1.60%

             Future salary increases 3.00% 3.00% Assumptions regarding future mortality experience are set based on actuarial advice in accordance with published statistics and experience according to Taiwan Life Insurance Industry 6th Mortality Table for the years ended December 31, 2025 and 2024.

             Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis was as follows:

             Discount rate Future salary increases Increase 0.25% Decrease 0.25% Increase 0.25% Decrease 0.25%

             December 31, 2025 Effect on present value of defined benefit obligation December 31, 2024 Effect on present value of defined benefit obligation

             ($ 6,257)

             ($ 7,320)

             $ 6,406

             $ 7,505

             $ 6,284

             $ 7,383

             ($ 6,169)

             ($ 7,239)

             The sensitivity analysis above is based on one assumption which changed while the other conditions remain unchanged. In practice, more than one assumption may change all at once. The method of analysing sensitivity and the method of calculating net pension liability in the

             balance sheet are the same.

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

          5. Expected contributions to the defined benefit pension plan of the Group for the next year amount to $3,600.

          6. As of December 31, 2025, the weighted average duration of the retirement plan is 5 years. The analysis of timing of the future pension payment was as follows:

             Within 1 year	$ 36,059
             1-2 years	60,300
             2-5 years	99,214
             Over 5 years	272,797
             	$ 468,370

       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 years ended December 31, 2025 and 2024 were $16,391 and $15,722, 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 years ended December 31, 2025 and 2024 were $20,946 and $21,355, respectively.

   14. Share capital

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

          Years ended December 31,

          2025 2024

          Beginning and ending balance 492,417 492,417

       2. As of December 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. 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$90 (in dollars) per share. The subsidiary's compensation cost recognised for the cash capital increase reserved for employee preemption for the year ended December 31, 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:

       Year ended December 31, 2025

       Options outstanding at January 1		Amounts (shares in thousands) -	Exercise price (in dollars) $ -
       Options granted		1,500	90
       Options exercised	(	1,212)	90

       Options expired ( 288) 90

       Options outstanding at December 31 - -

       Options exercisable at December 31 - -

       There was no such situation for the year ended December 31, 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.