2024Q4 Financial Statements

YFY Inc.

Parent Company Only Financial Statements for the Years Ended December 31, 2024 and 2023 and

Independent Auditors' Report

The Board of Directors and Shareholders YFY Inc.

We have audited the parent company only accompanying financial statements of YFY Inc. (the Company), which comprise the parent company only balance sheets as of December 31, 2024 and 2023, and the parent company only statements of comprehensive income, changes in equity and cash flows for the years then ended, and the notes to the parent company only financial statements, including a summary of material accounting policy information (collectively referred to as the "parent company only financial statements").

In our opinion, the accompanying parent company only financial statements present fairly, in all material respects, the parent company only financial position of the Company as of December 31, 2024 and 2023, and its parent company only financial performance and its parent company only 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 the 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 parent company only financial statements for the year ended December 31, 2024. 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, and we do not provide a separate opinion on these matters.

Key audit matter of the Company's financial statements for the year ended December 31, 2024 is stated as follows:

Valuation of Receivables Under the Investments Accounted for Using Equity Method

For investments accounted for using the equity method, the financial position and performance of certain significant investees may have a material impact on YFY Inc.'s financial results. As the balances of accounts receivable from these significant investees are material and the counterparties are numerous, the recoverability of such receivables depends on the financial condition of individual customers and management's judgment. Therefore, the estimation of expected credit losses on these receivables has been identified as a key audit matter in the Company's parent company only financial statements for the year ended December 31, 2024.

For the disclosures related to investments accounted for using the equity method, refer to Notes 4 and 9 to the accompanying financial statements.

Other audit procedures for the abovementioned key audit matter included the following:

1. We obtained the reports of impaired receivables impairment and assessed the reasonableness of the methodology and data used in the reports.

2. We tested the aging schedule for receivables and reviewed the calculation of expected credit loss for reasonableness of the recognized expected credit loss on receivables.

3. We tested the recoverability of receivables by analyzing overdue accounts and by verifying cash receipts in the subsequent period. For a receivable that was past due but not yet received, we assessed the reasonableness of the expected credit loss based on the customer's payment history, customer's credit policy control and tracking of overdue receivables.

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 parent company only financial statements.

As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgment and maintain 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 and appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the financial statements. We are responsible for the direction, supervision, and performance of the audit. We remain solely responsible for our audit opinion.

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements for the year ended December 31, 2024 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.

The engagement partners on the audit resulting in this independent auditors' report are Hui-Min Huang and Chih-Ming Shao.

Deloitte & Touche Taipei, Taiwan Republic of China

March 14, 2025

Notice to Readers

The accompanying parent company only financial statements are intended only to present the financial position, financial performance and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to audit such parent company only financial statements are those generally applied in the Republic of China.

For the convenience of readers, the independent auditors' report and the accompanying parent company only financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors' report and parent company only financial statements shall prevail.

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

(Continued)

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

The accompanying notes are an integral part of the parent company only financial statements. (Concluded)

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

Net cash flows generated from operating activities 884,299 755,349

CASH FLOWS FROM INVESTING ACTIVITIES

Acquisition of financial assets at fair value through other

The accompanying notes are an integral part of the parent company only financial statements. (Concluded)

1. GENERAL INFORMATION

   YFY Inc. (the Company) was incorporated in Kaohsiung in February 1950. The Company's shares have been listed on the Taiwan Stock Exchange (TWSE) since February 1977.

   The Company was originally principally engaged in the manufacture and sale of paper and paper-related products and the design, manufacture and sale of equipment. To increase its sales and competitiveness, the Company carried out a restructuring of the organization and spin-off of its specialized divisions. The Company spun off the assets, liabilities, and operations of its consumer products and packaging segments to its subsidiaries, Yuen Foong Yu Consumer Products Co., Ltd., in October 2007 and YFY Packaging Inc., in September 2005.

   In addition, the Company spun off the assets, liabilities and operations of its paper and cardboard business segment to Chung Hwa Pulp Corporation (CHPC) and acquired the shares issued by CHPC on October 1, 2012. After this transaction, CHPC became a subsidiary of the Company, and the Company became an investment holding company, with investment as its main business.

   The parent company only financial statements of the Company are presented in the Company's functional currency, the New Taiwan dollar.

2. APPROVAL OF FINANCIAL STATEMENTS

   The parent company only financial statements were approved by the Company's board of directors on March 14, 2025.

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

   1. Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the "IFRS Accounting Standards") endorsed and issued into effect by the Financial Supervisory Commission (FSC)

      The initial application of the IFRS Accounting Standards endorsed and issued into effect by the FSC did not have any material impact on the Company's accounting policies:

   2. The IFRS Accounting Standards endorsed by the FSC for application starting from 2025

      New, Amended and Revised Standards and Interpretations

      Effective Date

      Announced by IASB

      Amendments to IFRS 21 "Lack of Exchangeability" January 1, 2025 (Note 1)

      Amendments to IFRS 9 and IFRS 7 "Amendments to the Classification and Measurement of Financial Instruments" - the amendments to the application guidance of classification of financial assets

      January 1, 2026 (Note 2)

      Note 1: An entity shall apply those amendments for annual reporting periods beginning on or after January 1, 2025. Upon initial application of the amendments to IAS 21, the Group shall not restate the comparative information and shall recognize any effect of initially applying the amendments as an adjustment to the opening balance of retained earnings or, if applicable, to the cumulative amount of translation differences in equity as well as affected assets or liabilities.

      Note 2: An entity shall apply those amendments for annual reporting periods beginning on or after January 1, 2026. It is permitted to apply these amendments for an earlier period beginning on January 1, 2025. An entity shall apply the amendments retrospectively but is not required to restate prior periods. The effect of initially applying the amendments shall be recognized as an adjustment to the opening balance at the date of initial application. An entity may restate prior periods if, and only if, it is possible to do so without the use of hindsight.

      As of the date the parent company only financial statements were authorized for issue, the Company has assessed that the application of above standards and interpretations will not have a material impact on the Company's financial position and financial performance.

   3. The IFRS Accounting Standards issued by International Accounting Standards Board (IASB), but not yet endorsed and issued into effect by the FSC

      New, Amended and Revised Standards and Interpretations

      Effective Date

      Announced by IASB (Note)

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

      Amendments to IFRS 9 and IFRS 7 "Amendments to the Classification and Measurement of Financial Instruments"

      Amendments to IFRS 9 and IFRS 7 "Contracts Referencing Nature-dependent Electricity"

      Amendments to IFRS 10 and IAS 28 "Sale or Contribution of Assets between an Investor and its Associate or Joint Venture"

      January 1, 2026

      January 1, 2026

      To be determined by IASB

      IFRS 17 "Insurance Contracts" January 1, 2023

      Amendments to IFRS 17 January 1, 2023

      Amendments to IFRS 17 "Initial Application of IFRS 17 and IFRS 9 - January 1, 2023 Comparative Information"

      IFRS 18 "Presentation and Disclosure in Financial Statements" January 1, 2027 IFRS 19 "Subsidiaries without Public Accountability: Disclosures" January 1, 2027

      Note: Unless stated otherwise, the above IFRS Accounting Standards are effective for annual reporting periods beginning on or after their respective effective dates.

      IFRS 18 "Presentation and Disclosure in Financial Statements"

      IFRS 18 will supersede IAS 1 "Presentation of Financial Statements". The main changes comprise:

      • Items of income and expenses included in the statement of profit or loss shall be classified into the operating, investing, financing, income taxes and discontinued operations categories.

      • The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing and income taxes and profit or loss.

      • Provides guidance to enhance the requirements of aggregation and disaggregation: The Company shall identify the assets, liabilities, equity, income, expenses and cash flows that arise from individual transactions or other events and shall classify and aggregate them into groups based on shared characteristics, so as to result in the presentation in the primary financial statements of line items that have at least one similar characteristic. The Company shall disaggregate items with dissimilar characteristics in the primary financial statements and in the notes. The Group labels items as "other" only if it cannot find a more informative label.

      • Disclosures on Management-defined Performance Measures (MPMs): When in public communications outside financial statements and communicating to users of financial statements management's view of an aspect of the financial performance of the Company as a whole, the Company shall disclose related information about its MPMs in a single note to the financial statements, including the description of such measures, calculations, reconciliations to the subtotal or total specified by IFRS Accounting Standards and the income tax and non-controlling interests effects of related reconciliation items.

      Except for the above impact, as of the date the financial statements were authorized for issue, the Company is continuously assessing the possible impact of the application of above standards and interpretations on the Company's financial position and financial performance and will disclose the relevant impact when the assessment is completed.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

   1. Statement of compliance

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

   2. Basis of preparation

      The parent company only financial statements have been prepared on the historical cost basis except for financial instruments which are measured at fair value, net defined benefit assets which are measured at the present value of the defined benefit obligation less the fair value of plan assets and investments accounted for using the equity method.

      The fair value measurements, which are grouped into Levels 1 to 3 on the basis of the degree to which the fair value measurement inputs are observable and the significance of the inputs to the fair value measurement in its entirety, are described as follows:

      1. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

      2. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for an asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and

      3. Level 3 inputs are unobservable inputs for an asset or liability.

         When preparing the parent company only financial statements, the Company used the equity method to account for its investments in subsidiaries and associates. In order for the amounts of the net profit for the year, other comprehensive income (loss) for the year and total equity in the parent company only financial statements to be the same with the amounts attributable to the owners of the Company in its consolidated financial statements, adjustments arising from the differences in accounting treatments between the parent company only basis and the consolidated basis were made to investments accounted for using the equity method, the share of profit or loss of subsidiaries and associates (accounted for as investment revenue), the share of other comprehensive income (loss) of subsidiaries and associates and the related equity items.

   3. Classification of current and non-current assets and liabilities Current assets include:

      1. Assets held primarily for the purpose of trading;

      2. Assets expected to be realized within twelve months after the reporting period; and

      3. Cash, unless the asset is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.

         Current liabilities include:

         1. Liabilities held primarily for the purpose of trading;

         2. Liabilities due to be settled within 12 months after the reporting period, even if an agreement to refinance, or to reschedule payments, on a long-term basis is completed after the reporting period and before the parent company only financial statements are authorized for issue; and

         3. Liabilities for which the Company does not have the substantial right at the end of the reporting period an unconditional right to defer settlement for at least 12 months after the reporting period. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

         Assets and liabilities that are not classified as current are classified as non-current.

   4. Foreign currencies

      In preparing parent company only financial statements, transactions in currencies other than the entity's functional currency (i.e., foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.

      At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Exchange differences on monetary items arising from settlement or translation are recognized in profit or loss in the period in which they arise.

      Non-monetary items measured at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Exchange differences arising from the retranslation of non-monetary items are included in profit or loss for the period except for exchange differences arising from the retranslation of non-monetary items in respect of which gains and losses are recognized directly in other comprehensive income, in which case, the exchange differences are also recognized directly in other comprehensive income.

      Non-monetary items that are measured at historical cost in a foreign currency are not retranslated.

      For the purpose of presenting parent company only financial statements, the functional currencies of the Company and the Company entities (including subsidiaries and associates in other countries that use currency different from the currency of the Company) are translated into the presentation currency - the New Taiwan dollars as follows: Assets and liabilities are translated at the exchange rates prevailing at the end of the reporting period; and income and expense items are translated at the average exchange rates for the period. The resulting currency translation differences are recognized in other comprehensive income.

      On the disposal of a foreign operation or a disposal involving the loss of control that includes a foreign operation, all of the exchange differences accumulated in equity in respect of that operation are reclassified to profit or loss.

      In relation to a partial disposal that does not result in the Company losing control, the proportionate share of accumulated exchange differences is included in the calculation of equity transactions but is not recognized in profit or loss. For all other partial disposals, the proportionate share of the accumulated exchange differences recognized in other comprehensive income is reclassified to profit or loss.

   5. Investments in subsidiaries

      The Company uses the equity method to account for its investments in subsidiaries. A subsidiary is an entity that is controlled by the Company.

      Under the equity method, an investment in a subsidiary is initially recognized at cost and adjusted thereafter to recognize the Company's share of the profit or loss and other comprehensive income of the subsidiary. The Company also recognizes the changes in the Company's share of other equity of subsidiaries.

      Changes in the Company's ownership interest in a subsidiary that do not result in the Company losing control of the subsidiary are equity transactions. The Company recognizes directly in equity any difference between the carrying amount of the investment and the fair value of the consideration paid or received.

      When the Company's share of losses of a subsidiary exceeds its interest in that subsidiary (which includes any carrying amount of the investment accounted for using the equity method and long-term interests that, in substance, form part of the Company's net investment in the subsidiary), the Company continues recognizing its share of further losses.

      Any excess of the cost of acquisition over the Company's share of the net fair value of the identifiable assets and liabilities of a subsidiary that constitutes a business at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment and is not amortized Any excess of the Company's share of the net fair value of the identifiable assets and liabilities of a subsidiary that constitutes a business over the cost of acquisition is recognized immediately in profit or loss.

      The Company assesses its investment for any impairment by comparing the carrying amount with the estimated recoverable amount as assessed based on the investee's parent company only financial statements as a whole. If the recoverable amount of the investment subsequently increases, the Company recognizes a reversal of the impairment loss; the adjusted post-reversal carrying amount should not exceed the carrying amount that would have been recognized net of amortization or depreciation. An impairment loss recognized on goodwill cannot be reversed in a subsequent period.

      When the Company loses control of a subsidiary, it recognizes the investment retained in the former subsidiary at its fair value at the date when control is lost. The difference between the fair value of the retained investment plus any consideration received and the carrying amount of the previous investment at the date when control is lost is recognized as a gain or loss in profit or loss. Besides this, all amounts previously recognized in other comprehensive income in relation to that subsidiary are reclassified to profit and loss on the same basis as would be required if the Company had directly disposed of the related assets or liabilities.

      Profits or losses resulting from downstream transactions are eliminated in full only in the parent company only financial statements. Profits and losses resulting from upstream transactions and transactions between subsidiaries are recognized only in the parent company only financial statements to the extent of interests in the subsidiaries that are not related to the Company.

   6. Investment in associates

      An associate is an entity over which the Company has significant influence and that is not a subsidiary. The Company uses the equity method to account for its investments in associates.

      Under the equity method, investments in an associate are initially recognized at cost and adjusted thereafter to recognize the Company's share of the profit or loss and other comprehensive income of the associate. The Company also recognizes the changes in the Company's share of the equity of associates.

      Any excess of the cost of acquisition over the Company's share of the net fair value of the identifiable assets and liabilities of an associate at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment and is not amortized. Any excess of the Company's share of the net fair value of the identifiable assets and liabilities over the cost acquisition, after reassessment, this is recognized immediately in profit or loss.

      When the Company subscribes for additional new shares of the associate at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment differs from the amount of the Company's proportionate interest in the associate. The Company records such a difference as an adjustment to investments, with the corresponding amount charged or credited to capital surplus - changes in the Company's share of equity of associates. If the Company's ownership interest is reduced due to the additional subscription of the new shares of associate, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate is reclassified to profit or loss on the same basis as would be required if the investee had directly disposed of the related assets or liabilities. When the adjustment should be debited to capital surplus, but the capital surplus recognized from investments accounted for by the equity method is insufficient, the shortage is debited to retained earnings.

      When the Company's share of losses of an associate equals or exceeds its interest in that associate (which includes any carrying amount of the investment accounted for by the equity method and long-term interests that, in substance, form part of the Company's net investment in the associate), the Company discontinues recognizing its share of further losses. Additional losses and liabilities are recognized only to the extent that the Company has incurred legal obligations, or constructive obligations, or made payments on behalf of that associate.

      The entire carrying amount of an investment (including goodwill) is tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

      The Company discontinues the use of the equity method from the date on which its investment ceases to be an associate. Any retained investment is measured at fair value at that date and the fair value is regarded as its fair value on initial recognition as a financial asset. The difference between the previous carrying amount of the associate attributable to the retained interest and its fair value is included in the determination of the gain or loss on disposal of the associate. The Company accounts for all amounts previously recognized in other comprehensive income in relation to that associate on the same basis as would be required if that associate had directly disposed of the related assets or liabilities.

      When the Company transacts with its associate, profits and losses resulting from the transactions with the associate are recognized in the parent company only financial statements to the extent of interests in the associate that are not related to the Company.

   7. Property, plant and equipment

      Property, plant and equipment are stated at cost, less subsequent accumulated depreciation and subsequent accumulated impairment loss.

      Except for freehold land which is not depreciated, the depreciation on property, plant and equipment is recognized using the straight-line method. Each significant part is depreciated separately. The estimated useful lives, residual values and depreciation methods are reviewed at the end of each reporting period, with the effect of any changes in estimates accounted for on a prospective basis.

      On derecognition of an item of property, plant and equipment, the difference between the sales proceeds and the carrying amount of the asset is recognized in profit or loss.

   8. Investment properties

      Investment properties are properties held to earn rentals or for capital appreciation. Investment properties also include land held for a currently undetermined future use.

      Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are measured at cost less accumulated depreciation and accumulated impairment loss. Depreciation is recognized using the straight-line method.

      For a contract where a land owner provides land for the construction of buildings by a property developer in exchange for a certain percentage of the buildings, any exchange gain or loss is recognized when the exchange transaction occurs, if the buildings acquired are classified as investment properties and if the exchange transaction has commercial substance.

      On derecognition of an investment property, the difference between the net disposal proceeds and the carrying amount of the asset is included in profit or loss.

   9. Impairment of property, plant and equipment, right-of-use assets, investment properties and intangible assets

      At the end of each reporting period, the Company reviews the carrying amounts of its property, plant and equipment, right-of-use assets, investment properties and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Corporate assets are allocated to the individual cash-generating units on a reasonable and consistent basis of allocation.

      The recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount, with the resulting impairment loss recognized in profit or loss.

      When an impairment loss is subsequently reversed, the carrying amount of the asset or cash-generating unit is increased to the revised estimate of its recoverable amount, but only to the extent of the carrying amount that would have been determined had no impairment loss been recognized for the asset or cash-generating unit in prior years. A reversal of an impairment loss is recognized in profit or loss.

   10. Financial instruments

       Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instruments.

       Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss (i.e., FVTPL) are recognized immediately in profit or loss.

       1. Financial assets

          All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.

          1. Measurement category

             Financial assets are classified into the following categories: Financial assets at FVTPL, financial assets at amortized cost and investments in equity instruments at fair value through other comprehensive income (i.e., FVTOCI).

             1. Financial assets at FVTPL

                Financial assets are classified as at FVTPL when such a financial asset is mandatorily classified as at FVTPL. Financial assets mandatorily classified as at FVTPL are debt instruments that do not meet the amortized cost criteria or the FVTOCI criteria.

                Financial assets at FVTPL are subsequently measured at fair value, with any gains or losses arising on remeasurement recognized in profit or loss. The net gain or loss recognized in profit or loss incorporate any dividends or interest earned on the financial asset. Fair value is determined in the manner described in Note 20.

             2. Financial assets at amortized cost

                Financial assets that meet the following conditions are subsequently measured at amortized cost:

                1. The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and

                2. The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

                   Subsequent to initial recognition, financial assets at amortized cost are measured at amortized cost, which equals the gross carrying amount determined using the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

                   Interest income is calculated by applying the effective interest rate to the gross carrying amount of such a financial asset, except for:

                   1. Purchased or originated credit-impaired financial assets, for which interest income is calculated by applying the credit adjusted effective interest rate to the amortized cost of such financial assets; and

                   2. Financial assets that are not credit impaired on purchase or origination but have subsequently become credit impaired, for which interest income is calculated by applying the effective interest rate to the amortized cost of such financial assets in subsequent reporting periods.

                   A financial asset is credit impaired when one or more of the following events have occurred:

                   1. Significant financial difficulty of the issuer or the borrower;

                   2. Breach of contract, such as a default;

                   3. It is becoming probable that the borrower will enter bankruptcy or undergo a financial reorganization; or

                   4. The disappearance of an active market for that financial asset because of financial difficulties.

             3. Investments in equity instruments at FVTOCI

                On initial recognition, the Company may make an irrevocable election to designate investments in equity instruments as at FVTOCI. Designation as at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognized by an acquirer in a business combination.

                Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in other equity. The cumulative gain or loss will not be reclassified to profit or loss on disposal of the equity investments; instead, it will be transferred to retained earnings.

                Dividends on these investments in equity instruments are recognized in profit or loss when the Company's right to receive the dividends is established, unless the dividends clearly represent a recovery of part of the cost of the investment.

          2. Impairment of financial assets

             The Company recognizes a loss allowance for expected credit losses on financial assets (including trade receivables) at amortized cost.

             The Company always recognizes lifetime expected credit losses (ECLs) for receivables. For all other financial instruments, the Company recognizes lifetime ECLs when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on a financial instrument has not increased significantly since initial recognition, the Company measures the loss allowance for that financial instrument at an amount equal to 12-month ECLs.

             Expected credit losses reflect the weighted average of credit losses with the respective risks of default occurring as the weights. Lifetime ECLs represent the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECLs represent the portion of lifetime ECLs that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.

             For internal credit risk management purposes, the Company determines that the following situation indicate that a financial asset is in default (without taking into account any collateral held by the Company) when internal or external information show that the debtor is unlikely to pay its creditors.

             The impairment loss of all financial assets is recognized in profit or loss by a reduction in their carrying amounts through a loss allowance account, except for investments in debt instruments that are measured at FVTOCI, for which the loss allowance is recognized in other comprehensive income and the carrying amounts of such financial assets are not reduced.

          3. Derecognition of financial assets

             The Company derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

             On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset's carrying amount and the sum of the consideration received and receivable is recognized in profit or loss. On derecognition of an investment in an equity instrument at FVTOCI, the cumulative gain or loss that had been recognized in other comprehensive income is transferred directly to retained earnings, without recycling through profit or loss.

       2. Financial liabilities

          1. Subsequent measurement

             All financial liabilities are measured at amortized cost using the effective interest method.

          2. Derecognition of financial liabilities

             The difference between the carrying amount of a financial liability derecognized and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

   11. Provisions

       Provisions are measured at the best estimate of the discounted cash flows of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

   12. Leases

       At the inception of a contract, the Company assesses whether the contract is, or contains, a lease.

       1. The Company as lessor

          Leases are classified as finance leases whenever the terms of a lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

          Lease payments (less any lease incentives payable) from operating leases are recognized as income on a straight-line basis over the terms of the relevant leases. Initial direct costs incurred in obtaining operating leases are added to the carrying amounts of the underlying assets and recognized as expenses on a straight-line basis over the lease terms.

       2. The Company as lessee

          The Company recognizes right-of-use assets and lease liabilities for all leases at the commencement date of a lease, except for short-term leases and low-value asset leases accounted for applying an exemption where lease payments are recognized as expenses on a straight-line basis over the lease terms.

          Right-of-use assets are initially measured at present value of the lease payments and subsequently measured at cost less accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are presented on a separate line in the balance sheets.

          Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms.

          Lease liabilities are initially measured at the present value of the lease payments. The lease payments are discounted using the interest rate implicit in a lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses the lessee's incremental borrowing rate.

          Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in a lease term or a change in future lease payments resulting from a change in an index, the Company remeasures the lease liabilities with a corresponding adjustment to the right-of-use assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. For a lease modification that is not accounted for as a separate lease, the Company accounts for the remeasurement of the lease liability by decreasing the carrying amount of the right-of-use asset of lease modifications that decreased the scope of the lease, and recognizing in profit or loss any gain or loss on the partial or full termination of the lease; making a corresponding adjustment to the right-of-use asset of all other lease modifications. Lease liabilities are presented on a separate line in the balance sheets.

   13. Borrowing costs

       Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

       Other than stated above, all other borrowing costs are recognized in profit or loss in the period in which they are incurred.

   14. Employee benefits

       1. Short-term employee benefits

          Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service.

       2. Retirement benefits

          Payments to defined contribution retirement benefit plans are recognized as an expense when employees have rendered service entitling them to the contributions.

          Defined benefit costs (including service cost, net interest and remeasurement) under the defined benefit retirement benefit plans are determined using the projected unit credit method. Service cost and net interest on the net defined benefit assets are recognized as employee benefits expense in the period in which they occur. Remeasurement, comprising actuarial gains and losses and the return on plan assets (excluding interest), is recognized in other comprehensive income in the period in which it occurs. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.

          Net defined benefit assets represent the actual surplus in the Company's defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any refunds from the plans or reductions in future contributions to the plans.

   15. Taxation

       Income tax expense represents the sum of the tax currently payable and deferred tax.

       1. Current tax

          According to the Income Tax Act in the ROC, an additional tax on unappropriated earnings is provided for in the year the shareholders approve to retain earnings.

          Adjustments of prior years' tax liabilities are added to or deducted from the current year's tax provision.

       2. Deferred tax

          Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities and the corresponding tax bases used in the computation of taxable profit.

          Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profit will be available against which those deductible temporary differences can be utilized.

          Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, except where the Company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognized to the extent that it is probable that there will be sufficient taxable profit against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

          The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the assets to be recovered. A previously unrecognized deferred tax asset is also reviewed at the end of each reporting period and recognized to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

          Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liabilities are settled or the assets are realized, based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

          The Company has applied the exception from the recognition and disclosure of deferred tax assets and liabilities relating to Pillar Two income taxes. Accordingly, the Company neither recognizes nor discloses information about deferred tax assets and liabilities related to Pillar Two income taxes.

       3. Current and deferred taxes for the year

          Current and deferred taxes are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred taxes are also recognized in other comprehensive income or directly in equity, respectively.

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

   In the application of the Company's accounting policies, management is required to make judgments, estimations and assumptions about. the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates.

   When assessing material accounting estimates, the Company considers the possible impact of climate change and related government policies and regulations on the cash flow projection, growth rate, discount rate, profitability, and other relevant material estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.

6. CASH

   December 31

   	2024	2023
   Cash on hand	$ 108	$ 77
   Checking accounts and demand deposits	4,124	5,973
   	$ 4,232	$ 6,050

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS (FVTPL)

   December 31

   2024 2023

   Financial assets at FVTPL - current

   Financial assets mandatorily classified as at FVTPL Non-derivative financial assets

   Mutual funds $ 38,558 $ 48,692

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (FVTOCI)

   December 31

   	2024	2023
   Investments in equity instruments at FVTOCI - non-current
   Domestic investments Listed shares	$ 14,068,240	$ 12,442,545
   Unlisted shares	6,436,541	4,791,901
   	$ 20,504,781	$ 17,234,446

   The Company invested in listed and unlisted on domestic equity securities, and elected to designate these investments in equity instruments as at FVTOCI.

9. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

   December 31

   	2024	2023
   Investments in subsidiaries	$ 61,125,876	$ 57,166,502
   Investments in associates	6,661,118	5,744,337
   	$ 67,786,994	$ 62,910,839

   1. Investment in subsidiaries

      December 31

      2024 2023

      Listed company

      Chung Hwa Pulp Corporation	$ 9,124,149	$ 8,816,334
      Yuen Foong Yu Consumer Products Co., Ltd.	3,409,084	3,331,343
      Shin Foong Specialty and Applied Materials Co., Ltd.	2,958,699	2,812,951
      Unlisted company
      YFY International B.V.	14,710,803	14,267,098
      YFY Global Investment B.V.	9,048,287	7,810,942
      YFY Packaging Inc.	7,911,555	8,166,377
      YFY Development Corp.	7,349,418	6,039,451
      YFY Paradigm Investment Co., Ltd.	4,922,562	4,260,190
      China Color Printing Co., Ltd.	484,031	452,259
      Effion Enertech Co., Ltd.	456,078	470,929
      Union Paper Corp.	238,887	237,531
      Ensilience Co., Ltd.	144,934	132,133
      Fidelis IT Solutions Co., Ltd.	80,066	84,428
      Yuen Yan Paper Container Co., Ltd.	74,657	73,559
      YFY Japan Co., Ltd.	71,764	72,490
      YFY Corporate Advisory & Services Co., Ltd.	55,997	53,182
      San Ying Enterprise Co., Ltd.	50,253	49,794
      Sustainable Carbohydrate Innovation Co., Ltd.	34,652	35,511
      	$ 61,125,876	$ 57,166,502

      The percentage of ownership and voting rights held by the Company were as follows:

      December 31

      Name of Corporation 2024 2023

      Chung Hwa Pulp Corporation	57.8%	57.8%
      Yuen Foong Yu Consumer Products Co., Ltd.	59.1%	59.1%
      Shin Foong Specialty and Applied Materials Co., Ltd.	48.0%	48.0%
      YFY International B.V.	100.0%	100.0%
      YFY Global Investment B.V.	100.0%	100.0%
      YFY Packaging Inc.	100.0%	100.0%
      YFY Development Corp.	100.0%	100.0%
      YFY Paradigm Investment Co., Ltd.	100.0%	100.0%
      China Color Printing Co., Ltd.	49.7%	49.7%
      Effion Enertech Co., Ltd.	100.0%	100.0%
      Union Paper Corp.	18.9%	18.9%
      Ensilience Co., Ltd.	100.0%	100.0%
      Fidelis IT Solutions Co., Ltd.	100.0%	100.0%
      Yuen Yan Paper Container Co., Ltd.	50.9%	50.9%
      YFY Japan Co., Ltd.	100.0%	100.0%
      YFY Corporate Advisory & Services Co., Ltd.	100.0%	100.0%
      San Ying Enterprise Co., Ltd.	100.0%	100.0%
      Sustainable Carbohydrate Innovation Co., Ltd.	100.0%	100.0%

      In 2024 and 2023, Shin Foong Specialty and Applied Materials Co., Ltd., China Color Printing Co., Ltd. and Union Paper Corp. were deemed subsidiaries because the Company had substantial control over them even though the Company held less than 50% equity interests in each of the subsidiaries' voting shares.

      Except for YFY Japan Co., Ltd., investments accounted for using the equity method and the share of profit or loss and other comprehensive income (loss) of those investments were calculated based on audited financial statements. Management believes there will not be a material differences even if the financial statements were audited.

   2. Investments in associates

      December 31

      	2024	2023
      Material associates E Ink Holdings Inc.	$ 6,639,218	$ 5,721,460
      Associates that are not individually material	21,900	22,877
      	$ 6,661,118	$ 5,744,337

      Proportion of Ownership and

      Voting Rights

      December 31

      Name of Associate	2024	2023
      E Ink Holdings Inc.	11.6%	11.7%

      1. Material associates

         Refer to Table 4 "Information on Investees" for the nature of activities, principal place of business and country of incorporation of the associates.

         The investments in E Ink Holdings Inc. was accounted for using the equity method since the Company had significant influence over E Ink Holdings Inc. even though the Company held less than 20% of the investee's voting shares.

         The investments accounted for using the equity method and the share of profit or loss and other comprehensive income (loss) of those investments were calculated based on the associates' audited financial statements.

         In 2013, the Company increased its investment in E Ink Holdings Inc. by buying 20,000 thousand shares of the investee's privately placed ordinary shares for $329,000 thousand. Under the related regulations, privately placed ordinary shares should not be transferred within three years from the date of acquisition. E Ink Holdings Inc. has not yet completed publishing procedures as of March 14, 2025, the report date. The other rights and obligations are the same as those of ordinary shares.

         Fair values (Level 1) of investments in E Ink Holdings Inc. with available published price quotations are summarized as follows (excluding the privately placed ordinary shares):

         December 31

         2024 2023

         $ 30,978,103 $ 22,354,162

         The summarized financial information below represents amounts shown in the financial statements of E Ink Holdings Inc. prepared in accordance with IFRSs and has been adjusted by the Company for equity accounting purposes:

         December 31

         	2024	2023
         Current assets	$ 33,903,543	$ 26,515,690
         Non-current assets	57,248,201	47,940,543
         Current liabilities	(22,858,406)	(17,033,843)
         Non-current liabilities	(10,551,507)	(7,873,918)
         Equity	57,741,831	49,548,472
         Non-controlling interests	(689,341)	(640,651)
         	$ 57,052,490	$ 48,907,821
         Proportion of the Company's ownership	11.6%	11.7%
         Equity attributable to the Company	$ 6,631,953	$ 5,714,195
         Goodwill	7,265	7,265
         Carrying amount	$ 6,639,218	$ 5,721,460

         For the Year Ended December 31

         	2024	2023
         Operating revenue	$ 32,163,133	$ 27,119,755
         Profit for the year	$ 8,922,463	$ 7,866,226
         Other comprehensive income	4,165,429	2,326,203
         Total comprehensive income for the year	$ 13,087,892	$ 10,192,429

      2. Aggregate information of associates that are not individually material

         For the Year Ended December 31

         	2024	2023
         The Company's share of: Profit (loss) for the year	$ (977)	$ 492
         Other comprehensive loss	-	(1)
         Total comprehensive income (loss) for the year	$ (977)	$ 491

         The investments in Taiwan Genome Sciences, Inc. was accounted for using the equity method since the Company and its subsidiaries held more than 20% of the investee's voting shares even though the Company held less than 20% of the investee's voting shares. The Company sold all shares of Taiwan Genome Sciences, Inc., and the disposal was completed in February 2023.

         The investments accounted for using the equity method and the share of profit or loss and other comprehensive income of those investments were calculated based on the audited financial statements.

         All the associates were accounted for using the equity method.

10. PROPERTY, PLANT AND EQUIPMENT

    Land Buildings			Machinery and Equipment	Miscellaneous Equipment Total
    Cost
    Balance at January 1, 2024	$ 592,622	$ 138,759	$ 11,415	$ 38,695	$ 781,491
    Additions	108,517	-	-	41	108,558
    Disposals	-	(14,302)	-	(89)	(14,391)
    Balance at December 31, 2024	$ 701,139	$ 124,457	$ 11,415	$ 38,647	$ 875,658
    Accumulated depreciation
    Balance at January 1, 2024	$ -	$ 123,081	$ 11,407	$ 37,571	$ 172,059
    Depreciation expense	-	839	7	542	1,388
    Disposals	-	(14,302)	-	(81)	(14,383)
    Balance at December 31, 2024	$ -	$ 109,618	$ 11,414	$ 38,032	$ 159,064
    Carrying amounts at December 31,
    2024 $ 701,139		$ 14,839	$ 1	$ 615	$ 716,594
    					(Continued)

    	Land	Buildings	Machinery and Equipment	Miscellaneous Equipment	Total
    Cost
    Balance at January 1, 2023	$ 593,549	$ 138,759	$ 15,261	$ 42,922	$ 790,491
    Additions	-	-	-	144	144
    Disposals	-	-	(3,846)	(4,371)	(8,217)
    Reclassified as investment properties	(927)	-	-	-	(927)
    Balance at December 31, 2023	$ 592,622	$ 138,759	$ 11,415	$ 38,695	$ 781,491
    Accumulated depreciation
    Balance at January 1, 2023	$ -	$ 122,243	$ 15,245	$ 41,102	$ 178,590
    Depreciation expense	-	838	8	732	1,578
    Disposals	-	-	(3,846)	(4,263)	(8,109)
    Balance at December 31, 2023	$ -	$ 123,081	$ 11,407	$ 37,571	$ 172,059
    Carrying amounts at December 31,
    2023 $ 592,622		$ 15,678	$ 8	$ 1,124	$ 609,432
    					(Concluded)

    The above items of property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives as follows:

    Buildings

    Main buildings 15-55 years

    Others 3-30 years

    Machinery and equipment 5-15 years

    Miscellaneous equipment 3-50 years

    The non-cash investing activities of the Company for the years ended December 31, 2024 and 2023 were as follows:

    For the Year Ended December 31 2024 2023

    Acquisition of property, plant and equipment $ 108,558 $ 144

    Changes in prepayments for business facilities (accounted for as

    other non-current assets, others) 21,274 -

    Changes in payment of payables on equipment (accounted for as

    other payables, others) (2,057) 50

    $ 127,775 $ 194

11. LEASE ARRANGEMENTS

    1. Right-of-use assets

       December 31
       	2024	2023
       Carrying amounts
       Land	$ 270	$ 360
       Others	1,386	2,558
       	$ 1,656	$ 2,918
       For the Year Ended December 31
       	2024	2023
       Additions to right-of-use assets	$ -	$ 2,173
       Depreciation charge for right-of-use assets
       Land	$ 90	$ 96
       Others	1,172	1,518

       $ 1,262 $ 1,614

       Except for the aforementioned addition and recognized depreciation expense, the Company did not have significant sublease or impairment of right-of-use assets in 2024 and 2023.

    2. Lease liabilities

       December 31

       	2024	2023
       Carrying amounts
       Current	$ 868	$ 1,266
       Non-current	$ 836	$ 1,688

       The discount rates for lease liabilities adopted by the Company's assets were both 1.68%-1.86%.

    3. Other lease information

For the Year Ended December 31