Parent company only financial statements 2025

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' REPORT TRANSLATED FROM CHINESE

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

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

In our opinion, the accompanying parent company only financial statements present fairly, in all material respects, the financial position of the Company as at December 31, 2025 and 2024, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

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

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Company's 2025 parent company only financial statements.

These matters were addressed in the context of our audit of the parent company only financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on this matter.

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

Description

Refer to Note 4(25) for the accounting policies on revenue recognition. The Company 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. Affected by the economic environment, the net sales revenue in 2025 was NT$3,132,410 thousand. Since the export sales transactions are numerous, accounting for 89% of the total net sales revenue, and the verification of transaction authenticity also takes a long time, we considered the existence of revenue from export sales 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 supporting documentation, including customer orders, shipping orders, export declaration documents and subsequent cash collection.

Management is responsible for the preparation and fair presentation of the parent company only financial statements in accordance with the Regulations Governing the Preparation

of Financial Reports by Securities Issuers, and for such internal control as management determines is necessary to enable the preparation of parent company only financial statements that are free from material misstatement, whether due to fraud or error.

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

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

Our objectives are to obtain reasonable assurance about whether the parent company only financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these 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 parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve

   collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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

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

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

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

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

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

Independent Accountants

Hsu, Huei-Yu Tien, Chung-Yu

PricewaterhouseCoopers, Taiwan Republic of China

March 9, 2026

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

As the financial statements are the responsibility of the management, PricewaterhouseCoopers 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. PARENT COMPANY ONLY BALANCE SHEETS

DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

December 31, 2025 December 31, 2024

Assets Notes AMOUNT % AMOUNT %

(Continued)

NANTEX INDUSTRY CO., LTD. PARENT COMPANY ONLY BALANCE SHEETS

DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

December 31, 2025 December 31, 2024

Liabilities and Equity Notes AMOUNT % AMOUNT %

NANTEX INDUSTRY CO., LTD.

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

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

Year ended December 31

2025 2024

8361 Financial statements translation

6(6)

NANTEX INDUSTRY CO., LTD.

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

(Expressed in thousands of New Taiwan dollars)

Share Capital Capital Surplus Retained Earnings Other equity interest

Unrealised gains (losses) from financial

Changes in ownership interest

Unappropriated

Financial statements translation differences

assets measured at fair value through other

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

NANTEX INDUSTRY CO., LTD.

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

(Expressed in thousands of New Taiwan dollars)

Year ended December 31

NANTEX INDUSTRY CO., LTD.

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

(Expressed in thousands of New Taiwan dollars)

Year ended December 31

Notes 2025 2024

CASH FLOWS FROM INVESTING ACTIVITIES

Acquisition of financial assets at fair value through

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

NANTEX INDUSTRY CO., LTD.

NOTES TO THE PARENT COMPANY ONLY 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 is primarily engaged in the manufacture, processing and sales of various types of latex, rubbers 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 FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORISATION

   These parent company only 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 Amendments to IAS 21, 'Lack of exchangeability' January 1, 2025

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

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

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

      Effective date by International Accounting

      New Standards, Interpretations and Amendments Standards Board

      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 Company's financial condition and financial performance based on the Company'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:

      Effective date by International Accounting

      New Standards, Interpretations and Amendments Standards Board

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

      To be determined by International Accounting Standards Board

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

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

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

      January 1, 2027

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

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

      IFRS 18, 'Presentation and disclosure in financial statements'

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

      apply to the primary financial statements and notes.

4. SUMMARY OF MATERIAL ACCOUNTING POLICIES

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

   1. Compliance statement

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

   2. Basis of preparation

      1. Except for the following items, the parent company only 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 recognised based on the net amount of pension fund assets less present value of defined benefit obligation.

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

   3. Foreign currency translation

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

      1. Foreign currency transactions 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 based on the nature of those transactions are presented in the statement of comprehensive income within 'Other gains and losses'.

   4. Classification of current and non-current items

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

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

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

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

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

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

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

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

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

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

   5. Cash equivalents

      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.

   6. Financial assets at fair value through profit or loss

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

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

      3. At initial recognition, the Company measures the financial assets at fair value and recognises the

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

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

   7. Financial assets at amortised cost

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

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

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

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

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

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

   8. Notes and accounts receivable

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

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

   9. 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 realisable value is the estimated selling price in the ordinary course of business, less the estimated cost 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.

   10. Financial assets at fair value through other comprehensive income

       1. Financial assets at fair value through other comprehensive income comprise equity securities

          which are not held for trading, and for which the Company has made an irrevocable election at initial recognition to recognise changes in fair value in other comprehensive income.

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

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

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

   11. Impairment of financial assets

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

   12. Derecognition of financial assets

       The Company 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 Company 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 Company has no retained control of the financial asset.

   13. Investments accounted for using equity method / subsidiaries

       1. A subsidiary is an entity where the Company has the right to dominate its finance and operating policies (including special purpose entities), normally the Company owns more than 50% of the voting rights directly or indirectly in that entity. Subsidiaries are accounted for under the equity method in the Company's parent company only financial statements.

       2. Unrealised gains or losses resulting from inter-company transactions with subsidiaries are eliminated. Necessary adjustments are made to the accounting policies of subsidiaries, to be consistent with the accounting policies of the Company.

       3. After acquisition of subsidiaries, the Company recognises proportionately the share of profit and loss and other comprehensive income in the income statement as part of the Company's profit and loss and other comprehensive income, respectively. When the share of loss from a subsidiary

          exceeds the carrying amount of Company's interest in that subsidiary, the Company continues to recognise its share in the subsidiary's loss proportionately.

       4. According to Regulations Governing the Preparation of Financial Statements by Securities Issuers, 'Profit for the year' and 'Other comprehensive income for the year' reported in an entity's parent company only statement of comprehensive income, shall equal to 'profit for the year" and "Other comprehensive income' attributable to owners of the parent reported in that entity's consolidated statement of comprehensive income. Total equity reported in an entity's parent company only financial statements, shall equal to equity attributable to owners of parent reported in that entity's consolidated financial statements.

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

   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 Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

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

       4. The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each 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	3	～	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 Company. For short-term leases or leases of low-value assets, lease payments are recognised as an expense on a straight-line basis over the lease term.

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

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

   17. Impairment of non-financial assets

       The Company assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell or value in use. 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 Company 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 Company uses interest rates of government bonds (at the balance sheet date) instead.

             2. Remeasurements arising on defined benefit plan are recognised in other comprehensive income in the period in which they arise and are recorded as 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 Company 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 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 parent 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 Company 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 Company 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 Company 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 Company recognises the incremental costs of obtaining a contract as an expense when incurred although the Company expects to recover those costs.

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF

   ASSUMPTION UNCERTAINTY

   The preparation of these parent company only financial statements requires management to make critical judgements in applying the Company's accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. Such assumptions and estimates 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:

      $	260	$	275
      747,835		978,022
      748,095		978,297
      -		295,065
      $ 748,095		$ 1,273,362

      Cash on hand

      Checking accounts and demand deposits

      Cash equivalents: Time deposits

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

      2. The Company has no cash and cash equivalents pledged to others as of December 31, 2025 and 2024.

   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 Company recognised net gain and (loss) from changes in fair values in the amount of $95 and ($120), respectively. The Company 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 Company has no financial assets at fair value through profit or loss pledged to others as of December 31, 2025 and 2024.

   3. Notes and accounts receivable, net

      December 31, 2025 December 31, 2024

      Notes receivable

      $ 26,746

      $ 33,832

      Accounts receivable

      $ 350,959

      $ 525,794

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

         December 31, 2025 December 31, 2024

         	Accounts receivable	Notes receivable	Accounts receivable	Notes receivable
         Not past due	$ 247,178	$ 26,746	$ 305,355	$ 33,832
         Less than 90 days	103,781	-	220,439	-
         	$ 350,959	$ 26,746	$ 525,794	$ 33,832

         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 $302,029.

      3. As of December 31, 2025 and 2024, the Company does not hold any collateral 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'.

   4. Inventories

      December 31, 2025 Allowance for

      Cost market price decline Book value

      Raw materials	$ 215,931	($	5,214)	$ 210,717
      Supplies	13,751	(	71)	13,680
      Work in progress	36,173	(	1,108)	35,065
      Finished goods	184,593	( 23,606)		160,987
      	$ 450,448	($ 29,999)		$ 420,449

      December 31, 2024 Allowance for

      	Cost	market price decline	Book value
      Raw materials	$ 330,707	($ 2,410)	$ 328,297
      Supplies	10,168	( 71)	10,097
      Work in progress	45,981	( 1,108)	44,873
      Finished goods	298,982	( 24,492)	274,490
      	$ 685,838	($ 28,081)	$ 657,757

      The cost of inventories recognised as expense for the year:

      Years ended December 31,

      	2025		2024
      Cost of goods sold	$ 2,844,027		$ 4,360,760
      Provision for (reversal of) inventory market price decline (Note)	1,918	(	10,513)
      Loss on physical inventory	5,615	9,383
      Loss on discarding inventory	-	21
      Revenue from sale of scraps	( 1,386)	( 1,267)
      	$ 2,850,174	$ 4,358,384

      (Note) For the year ended December 31, 2024, the Company 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 or sold.

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

      	December 31, 2025	December 31, 2024
      Equity instruments
      Listed stocks	$ 139,259	$ 139,259
      Unlisted stocks	162,740	162,740
      	301,999	301,999
      Valuation adjustment	268,620	275,700
      	$ 570,619	$ 577,699

      1. The Company 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.

      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:

         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 held at end of year

         ($ 7,080)

         $ 10,509

         $ 518

         $ 21,906

      3. 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 Company was the carrying amount.

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

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

   6. Investments accounted for under equity method

      Years ended December 31,

      		2025	2024
      At January 1		$ 10,992,686	$ 9,888,362
      Addition of investments accounted for using equity method Share of profit of investments accounted		345,055 773,645	- 656,092
      for under equity method Share of other comprehensive income of	(	9,087) (	21,595)
      investments accounted for under equity method
      Earnings distribution of investments accounted for under equity method Adjustments to investments accounted for under	(	606,283) ( 9,856	64,065) -
      equity method from not acquiring shares
      proportionately to ownership interest (Note)
      Changes in capital surplus	12,361		265
      Changes in other equity items	( 298,526)		533,627
      At December 31	$ 11,219,707		$ 10,992,686
      	December 31, 2025		December 31, 2024
      Subsidiaries:
      INTERMEDIUM INTERNATIONAL LIMITED	$ 9,824,695		$ 10,076,329

      Nanmat Technology Co., Ltd. 1,395,012 916,357

      $ 11,219,707 $ 10,992,686

      (Note) The subsidiary, Nanmat Technology Co., Ltd., increased its capital for the year ended December 31, 2025. As the Company did not acquire shares proportionately, the shareholding ratio was decreased from 41.00% to 40.57%. The Company 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').

      1. For more information regarding the subsidiaries of the Company, refer to Note 4(3), 'Basis of consolidation' of the 2025 consolidated financial statements.

      2. As of December 31, 2025 and 2024, no investments accounted for under equity method held by the Company were pledged to others.

         							Unfinished
         Buildings Machinery							construction
         Land and and					Leashelod	Other	and equipment
         Land improvements structures equipment					improvements	equipment	under acceptance	Total
         At January 1, 2025 Cost	$ 448,185	$ 18,474	$ 969,139	$ 3,002,534	$ 7,960	$ 231,838	$ 156,133	$ 4,834,263
         Accumulated depreciation	-	( 17,867)	( 739,251)	( 2,588,778)	( 6,619)	( 198,866)	-	( 3,551,381)
         	$ 448,185	$ 607	$ 229,888	$ 413,756	$ 1,341	$ 32,972	$ 156,133	$ 1,282,882
         Year ended December 31, 2025
         At January 1 $ 448,185		$ 607	$ 229,888	$ 413,756	$ 1,341	$ 32,972	$ 156,133	$ 1,282,882
         Additions - Cost -		-	7,732	3,951	-	10,706	63,618	86,007
         Transferred after acceptance -		1,250	19,225	136,638	-	5,572	( 162,685)	-
         Disposals - Cost -		-	-	( 1,103)	-	( 5,024)	-	( 6,127)
         - Accumulated -		-	-	1,103	-	4,461	-	5,564
         depreciation
         Depreciation -		( 455) ( 22,668) ( 110,733) ( 670) ( 11,590)					-	( 146,116)
         At December 31 $ 448,185		$ 1,402 $ 234,177 $ 443,612 $ 671 $ 37,097					$ 57,066	$ 1,222,210
         At December 31, 2025 Cost $ 448,185		$ 19,724 $ 996,096 $ 3,142,020 $ 7,960 $ 243,092					$ 57,066	$ 4,914,143
         Accumulated depreciation -		( 18,322) ( 761,919) ( 2,698,408) ( 7,289) ( 205,995)					-	( 3,691,933)
         $ 448,185		$ 1,402	$ 234,177	$ 443,612	$ 671	$ 37,097	$ 57,066	$ 1,222,210

   7. Property, plant and equipment

      inspection

      											Unfinished
      Buildings Machinery											construction
      Land and and							Leashelod		Other		and equipment
      Land improvements structures equipment							improvements		equipment		under acceptance Total
      At January 1, 2024 Cost	$ 448,185	$ 18,474	$ 967,978		$ 3,012,546		$ 7,960		$ 256,362		$ 128,067	$ 4,839,572
      Accumulated depreciation	-	( 17,193)	( 720,267)		( 2,512,738)		( 5,888)		( 190,211)		-	( 3,446,297)
      	$ 448,185	$ 1,281	$ 247,711		$ 499,808		$ 2,072		$ 66,151		$ 128,067	$ 1,393,275
      Year ended December 31, 2024
      At January 1 $ 448,185	$ 1,281		$ 247,711		$ 499,808		$ 2,072		$ 66,151		$ 128,067	$ 1,393,275
      Additions - Cost -	-		95		4,223		-		2,089		46,140	52,547
      Transferred after acceptance -	-		679		11,795		-		5,600		( 18,074)	-
      Disposals - Cost -	-		-		( 31,328)		-		( 3,042)		-	( 34,370)
      - Accumulated -	-		-		31,328		-		3,042		-	34,370
      depreciation
      Depreciation -	(	674)	(	18,984)	(	107,368)	(	731)	(	11,697)	-	(	139,454)
      Reclassifications (Note)	-	-	387		5,298		-		( 29,171)		-	( 23,486)
      At December 31	$ 448,185	$ 607	$ 229,888		$ 413,756		$ 1,341		$ 32,972		$ 156,133	$ 1,282,882
      At December 31, 2024
      Cost	$ 448,185	$ 18,474	$ 969,139		$ 3,002,534		$ 7,960		$ 231,838		$ 156,133	$ 4,834,263
      Accumulated depreciation	-	( 17,867)	( 739,251)		( 2,588,778)		( 6,619)		( 198,866)		-	( 3,551,381)
      	$ 448,185	$ 607	$ 229,888		$ 413,756		$ 1,341		$ 32,972		$ 156,133	$ 1,282,882

      inspection

      (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 Company did not capitalise the borrowing costs as part of property, plant and equipment 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 Company leases various assets including land, buildings, machinery and business vehicles. Rental contracts are typically made for periods of 1 to 20 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	$ 526			$ 921
         Buildings	32,177			35,687
         Machinery and equipment	81,362			108,482
         Transportation equipment (Business vehicles)	1,829			210
         	$ 115,894			$ 145,300
         Years ended December 31,
         		2025			2024
         		Depreciation charge			Depreciation charge
         Land	$	395		$	397
         Buildings		3,510			3,510
         Machinery and equipment		27,120			27,120
         Transportation equipment (Business vehicles)		413			420
         	$	31,438		$	31,447

      3. For the years ended December 31, 2025 and 2024, the additions to right-of-use assets were $2,034 and $1,184, 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	$	2,991		$	3,605
         Expense on short-term lease or leases		-			62

         of low-value assets

      5. For the years ended December 31, 2025 and 2024, the Company's total cash outflow for leases were $33,761 and $33,722, respectively.

   9. Intangible assets

      Year ended December 31, 2025 Trademarks Computer software Total

      At January 1, 2025
      Cost	$ 723	$	76 $ 799
      Accumulated amortisation	( 533)	(	54) ( 587)
      Net value	$ 190	$	22 $ 212
      Year ended December 31, 2025
      At January 1	$ 190	$	22 $ 212
      Additions - acquired separately	51		- 51
      Disposals - cost	( 307)		- ( 307)
      - accumulated amortisation	307		- 307
      Amortisation	( 126)	(	15) ( 141)
      At December 31	$ 115	$	7 $ 122
      At December 31, 2025
      Cost	$ 467	$	76 $ 543
      Accumulated amortisation	( 352)	(	69) ( 421)
      Net value	$ 115	$	7 $ 122

      Year ended December 31, 2024 Trademarks Computer software Total

      At January 1, 2024
      Cost	$ 747		$	76		$ 823
      Accumulated amortisation	( 434)		(	39) (		473)
      Net value	$ 313		$	37		$ 350
      Year ended December 31, 2024
      At January 1	$ 313		$	37		$ 350
      Additions - acquired separately	22			-		22
      Disposals - cost	(	46)	-		(	46)
      - accumulated amortisation		46		-		46
      Amortisation	(	145)	(	15)	(	160)
      At December 31	$ 190 $			22		$ 212
      At December 31, 2024
      Cost	$ 723 $			76		$ 799
      Accumulated amortisation	( 533) (			54) (		587)
      Net value	$ 190 $			22		$ 212

      The Company recognised amortisation in the amount of $141 and $160 (listed as 'Operating expenses') for the years ended December 31, 2025 and 2024, respectively.

   10. Short-term borrowings

       Type of borrowings December 31, 2024 Interest rate Collateral Bank borrowings

       Unsecured borrowings

       $ 50,000

       1.91% None

       As of December 31, 2025, there was no such situation.

       For the years ended December 31, 2025 and 2024, the Company recognised interest expense in profit or loss. Refer to Note 6(20) for details.

   11. Other payables

       December 31, 2025 December 31, 2024

       Wages and salaries payable	$ 111,815	$ 138,677
       Employees' compensation and directors'	24,734	42,100
       remuneration payable Payables on equipment	4,163	1,841
       Others	76,448	75,770
       	$ 217,160	$ 258,388

   12. Pensions

       1. The Company has 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 of injury at work will receive 20% in addition. The Company contributes monthly an amount equal to 15% 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 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 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	($ 387,208)	($ 430,334)
             Fair value of plan assets	675,792	668,776
             Net defined benefit asset	$ 288,584	$ 238,442

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

             Year ended December 31, 2025	Present value of defined benefit obligations			Fair value of plan assets	Net defined benefit asset
             At January 1	($ 430,334)			$ 668,776	$ 238,442
             Current service cost	( 701)			-	( 701)
             Interest (expense) income	( 6,621)			10,436	3,815
             	( 437,656)			679,212	241,556
             Remeasurements:
             Return on plan assets (excluding	-			47,750	47,750
             amounts included in interest income or expense)
             Change in financial assumptions	(	6,690)		- (	6,690)
             Experience adjustments		5,968		-	5,968
             	(	722)		47,750	47,028
             Paid pension		51,170	(	51,170)	-
             At December 31	($	387,208)		$ 675,792	$ 288,584

             Present value of

             defined benefit Fair value of Net defined

             Year ended December 31, 2024 obligations plan assets benefit asset

             At January 1 Current service cost

             ($ 475,731) $

             ( 2,025)

             654,619 $

             - (

             178,888

             2,025)

             Interest (expense) income

             ( 5,247)

             7,304 2,057

             (		483,003)		661,923		178,920
             Remeasurements:
             Return on plan assets (excluding	-			60,093	60,093
             amounts included in interest
             income or expense)
             Change in financial assumptions		12,133		-	12,133
             Experience adjustments	(	12,704)		- (	12,704)
             	(	571)		60,093	59,522
             Paid pension		53,240	(	53,240)	-
             At December 31	($	430,334)		$ 668,776	$ 238,442

          3. The Bank of Taiwan was commissioned to manage the Fund of the Company'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 has no right to participate in managing and operating that fund and hence the Company is 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

             ($ 5,588)

             $ 5,720

             $ 5,610

             ($ 5,510)

             December 31, 2024

             Effect on present value of defined benefit

             Discount rate Future salary increases

             Increase 0.25% Decrease 0.25% Increase 0.25% Decrease 0.25%

             obligation

             ($ 6,516)

             $ 6,675

             $ 6,567

             ($ 6,444)

             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 Company for the next year amount to $－.

          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 $ 34,522

             1-2 years 40,296

             2-5 years 96,792

             Over 5 years 246,354

             $ 417,964

       2. Effective July 1, 2005, the Company has 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 contributes 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 Company for the years ended December 31, 2025 and 2024 were $6,521 and $6,370, respectively.

   13. 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

          At beginning and end of year 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.

   14. 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.

   15. 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 original 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 amounts 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) and $492,417 ($1.0 (in dollars) per share) for the years ended December 31, 2025 and 2024, respectively. On March 9, 2026, the Board of Directors proposed for the distribution of cash dividends of $492,417 ($1.0 (in dollars) per share) from the 2025 earnings.

   16. Operating revenue

       1. Disaggregation of revenue from contracts with customers

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

          Years ended December 31,

          	2025	2024
          Revenue from latex products	$ 2,268,386	$ 4,188,762
          Revenue from rubber products	832,288	872,886
          Others	31,736	3,245
          	$ 3,132,410	$ 5,064,893

       2. Contract liabilities

          1. On December 31, 2025 and 2024, the Company has recognised the revenue-related contract liabilities amounting to $6,904 and $5,905, respectively.

          2. On January 1, 2025 and 2024, the contract liabilities were $5,905 and $8,284, respectively, and the contract liabilities at the beginning of 2025 and 2024 of $5,861 and $7,101 were recognised as revenue for the years ended December 31, 2025 and 2024, respectively.

   17. Interest income

       Years ended December 31,

       2025 2024

       Interest income from bank deposits

   18. Other income

       $ 9,739

       $ 40,058

       Years ended December 31,

       	2025	2024
       Dividend income	$ 10,509	$ 21,906
       Other income	6,495	7,372
       	$ 17,004	$ 29,278

   19. Other gains and losses

       Years ended December 31, 2025 2024

       Net currency exchange (losses) gains	($	20,731) $	91,131
       Gains on financial assets at fair value through profit or loss (Note)		1,287	1,024
       Other losses	(	252) (	39)
       	($	19,696) $	92,116

       (Note) Represents the distribution of fund income of $1,192 and $1,144 and unrealized valuation gains (losses) of $95 and ($120) for the years ended December 31, 2025 and 2024, respectively.

   20. Finance costs

       Interest expense Bank loans

       Lease liabilities

   21. Expenses by nature

       Years ended December 31,

       2025			2024
       $	111		$	35
       	2,991			3,605
       $	3,102		$	3,640

       Year ended December 31, 2025

       	Operating cost	Operating expense		Total
       Employee benefits expense	$ 154,467	$ 211,245		$ 365,712
       Depreciation	123,108	54,446		177,554
       Amortisation	-	141		141
       	$ 277,575	$ 265,832		$ 543,407
       Year ended December 31, 2024
       	Operating cost	Operating expense		Total
       Employee benefits expense	$ 180,767	$ 235,536		$ 416,303
       Depreciation	118,294	52,607		170,901
       Amortisation	-	160		160
       	$ 299,061	$ 288,303		$ 587,364

   22. Employee benefits expense

       Year ended December 31, 2025 Operating Operating

       cost expense Total

       Salaries and wages	$ 133,209	$ 135,532		$ 268,741
       Labour and health insurance expenses	12,194	13,056		25,250
       Pension costs (gain)	3,641	(	234)	3,407
       Directors' remuneration	-		53,525	53,525
       Other personnel expenses	5,423		9,366	14,789
       	$ 154,467		$ 211,245	$ 365,712
       Year ended December 31, 2024
       	Operating	Operating
       	cost	expense		Total
       Salaries and wages	$ 159,708	$ 153,902		$ 313,610
       Labour and health insurance	12,679	12,937		25,616
       expenses
       Pension costs	3,575	2,763		6,338
       Directors' remuneration	-	54,411		54,411
       Other personnel expenses	4,805	11,523		16,328
       	$ 180,767	$ 235,536		$ 416,303

       1. For the years ended December 31, 2025 and 2024, the average number of employees of the Company were 286 and 301, both including 18 non-employee directors, respectively.

       2. Average employee benefit expense in 2025 and 2024 were $1,165 and $1,279, respectively and average wages and salaries in 2025 and 2024 were $1,003 and $1,108, respectively. The average wages and salaries in current year compared to prior year decreased by 9.51%.

       3. Directors' remuneration of the Company is determined based on their job responsibility, taking into consideration the directors' extent of participation in the Company's operations, contributions and a pay level which is widely accepted within the same industry. Management's remuneration is determined based on the personal capabilities, the contribution to the Company, standard salary range for the position and the Company's future operational risk. Directors' and management's remunerations are reviewed by the remuneration committee and approved by the Board of Directors. Employees' remuneration is determined based on the employees' capabilities, performance and the Company's operating conditions and profitability, and will be adjusted once every year. The policy of employees' remuneration will be set by the HR department, which will be reported to the general manager and approved by the Board of Directors.

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