2026Q1 Consolidated Financial Statements

The Board of Directors and Shareholders YFY Inc.

We have reviewed the accompanying consolidated balance sheets of YFY Inc. and its subsidiaries (collectively referred to as the "Group") as of March 31, 2026 and 2025, the related consolidated statements of comprehensive income, the consolidated statements of changes in equity and cash flows for the three months ended March 31, 2026 and 2025, and the related notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 "Interim Financial Reporting" endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

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

As disclosed in Notes 15 and 16 to the consolidated financial statements, the financial statements of some non-significant subsidiaries and investments accounted for using the equity method included in the consolidated financial statements referred to in the first paragraph were not reviewed. As of March 31, 2026 and 2025, the combined total assets of these non-significant subsidiaries were NT$37,758,250 thousand and NT$34,013,769 thousand, respectively, representing both of 21%, of the consolidated total assets, and the combined total liabilities of these non-significant subsidiaries were NT$7,489,895 thousand and NT$8,629,553 thousand, respectively, representing 9% and 11%, respectively, of the consolidated total liabilities; for the three months ended March 31, 2026 and 2025, the amounts of combined comprehensive income of these non-significant subsidiaries were a gain of NT$75,903 thousand and NT$81,925 thousand, respectively, representing 1% and (23%), respectively, of the consolidated total comprehensive income. As of March 31, 2026 and 2025, the carrying amounts of the above mentioned investments accounted for using equity method were NT$244,422 thousand and NT$263,536 thousand, respectively; for the three months ended March 31, 2026 and 2025, the amounts of comprehensive income of investments accounted for using equity method were a loss of NT$4,133 thousand and a gain of NT$1,072 thousand, respectively.

Based on our reviews, except for the adjustments, if any, as might have been determined to be necessary had the financial statements of the non-significant subsidiaries and investments accounted for using the equity method as described in the preceding paragraph been reviewed, nothing has come to our attention that has caused us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as of March 31, 2026 and 2025, and its consolidated financial performance and consolidated cash flows for the three months ended March 31, 2026 and 2025 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 "Interim Financial Reporting" endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

The engagement partners on the reviews resulting in this independent auditors' review report are Shu-Jiuan Ye and Chih-Ming Shao.

Deloitte & Touche Taipei, Taiwan Republic of China

May 14, 2026

Notice to Readers

The accompanying consolidated financial statements are intended only to present the consolidated 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 review such consolidated financial statements are those generally applied in the Republic of China.

For the convenience of readers, the independent auditors' review report and the accompanying consolidated 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' review report and consolidated financial statements shall prevail.

(Continued)

(Continued)

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

(With Deloitte & Touche review report dated May 14, 2026) (Concluded)

YFY INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In Thousands of New Taiwan Dollars)

Difference Between

Equity Attributable to Owners of Parent

Capital Surplus Other Equity

Unrealized Gains (Losses) on

Consideration

and Carrying

Amount of Changes in Retained Earnings

Exchange

Differences on Translation of

Financial Assets

Measured at Fair Value Through

Share Capital Subsidiaries Ownership Unappropriated Foreign Other Gains (Losses) on

Shares (In

Acquired or

Interests in

Consolidation

Retained

Financial

Comprehensive

Hedging

Non-controlling

The accompanying notes are an integral part of the consolidated financial statements. (With Deloitte & Touche review report dated May 14, 2026)

March 31

(Continued)

March 31

CASH FLOWS USED IN INVESTING ACTIVITIES

Acquisition of financial assets at fair value through other

comprehensive income - (3,935)

Proceeds from disposal of financial assets at fair value through other

comprehensive income 466,396 -

Proceeds from capital reduction of financial assets at fair value through

Net cash flows used in investing activities (2,601,746) (2,313,853)

CASH FLOWS GENERATED FROM FINANCING ACTIVITIES

Net cash flows generated from financing activities 616,320 2,696,446

EFFECTS OF EXCHANGE RATE CHANGES ON CASH AND CASH

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

(With Deloitte & Touche review report dated May 14, 2026) (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 consolidated financial statements of the Company and its subsidiaries, hereto forth collectively referred to as the Group, are presented in the Company's functional currency, the New Taiwan dollar.

2. APPROVAL OF FINANCIAL STATEMENTS

   The consolidated financial statements were approved by the Company's board of directors on May 14, 2026.

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 a material impact on the Group's accounting policies.

   2. The IFRS Accounting Standards in issue but not yet endorsed and issued into effect by the FSC

      New, Amended and Revised Standards and Interpretations

      Effective Date

      Announced by IASB (Note 1)

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

      To be determined by IASB

      IFRS 18 "Presentation and Disclosure in Financial Statements" January 1, 2027 (Note 2)

      IFRS 19 "Subsidiaries without Public Accountability: Disclosures" (including the 2025 amendments to IFRS 19)

      Amendments to IAS 21 "Translation to a Hyperinflationary Presentation Currency"

      January 1, 2027

      January 1, 2027

      Note 1: Unless stated otherwise, the above IFRS Accounting Standards are effective for annual reporting periods beginning on or after their respective effective dates.

      Note 2: On September 25, 2025, the FSC announced that IFRS 18 will take effect starting from January 1, 2028. Domestic entities could elect to apply IFRS 18 for an earlier period after the endorsement of IFRS 18 by the FSC.

      IFRS 18 "Presentation and Disclosure in Financial Statements" and consequential amendments

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

      • To classify items of income and expenses presented in the statement of profit or loss into the operating, investing, financing, income taxes and discontinued operations categories, the Group shall assess whether it has specified main business activities of investing in particular types of assets and providing financing to customers.

      • 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 Group 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 Group 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 Group as a whole, the Group 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.

        In addition, the following consequential amendments have been made to IAS 7 "Statement of Cash Flows":

      • The Group shall use operating profit or loss as the starting point when presenting cash flows from operating activities under the indirect method.

      • Interest and dividends received by the Group shall be classified as investing activities, while interest and dividends paid shall be classified as financing activities. However, if, after assessment, the Group has a specific main operating activity, it shall determine how to classify dividends received, interest received and interest paid in the statement of cash flows by referring to how it classifies dividend income, interest income and interest expense in the statement of profit or loss. The total of each of these cash flows shall be classified in a single category in the statement of cash flows.

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

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

   1. Statement of compliance

      These interim consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34 "Interim Financial Reporting" as endorsed and issued into effect by the FSC. Disclosure information included in these interim consolidated financial statements is less than the disclosure information required in a complete set of annual consolidated financial statements.

   2. Basis of preparation

      The consolidated financial statements have been prepared on the historical cost basis except for financial instruments which are measured at fair value, biological assets (excluding bearer plants) which are measured at fair value less costs to sell, net defined benefit liabilities (assets) which are measured at the present value of the defined benefit obligation less the fair value of plan assets, investments accounted for using the equity method and the lower of cost or net realizable value on inventories.

      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.

   3. Basis of consolidation

      The consolidated financial statements incorporate the financial statements of the Company and the entities controlled by the Company (i.e., its subsidiaries).

      Income and expenses of subsidiaries acquired or disposed of during the period are included in the consolidated statement of profit or loss and other comprehensive income from the effective date of acquisition or up to the effective date of disposal, as appropriate.

      When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Company.

      All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

      Changes in the Group's ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the Group's interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to the owners of the Company.

      When the Group loses control of a subsidiary, a gain or loss is recognized in profit or loss and is calculated as the difference between (i) the aggregate of the fair value of the consideration received and any investment retained in the former subsidiary at its fair value at the date when control is lost and (ii) share of the assets (including any goodwill) less liabilities and any non-controlling interests of the former subsidiary at the date when control is lost. The Group accounts for all amounts recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required if the Group had directly disposed of the related assets or liabilities.

      The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition of an investment in an associate or financial assets.

      Refer to Note 15 and Tables 7 and 8 for more information on subsidiaries (including the percentage of ownership and main business).

   4. Other material accounting policies

      Except for the following, please refer to the consolidated financial statements for the year ended December 31, 2025.

      1. Retirement benefits

         Pension cost for an interim period is calculated on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant plan amendments, settlements, or other significant one-off events

      2. Income tax expense

         Income tax expense represents the sum of the tax currently payable and deferred tax. Interim period income taxes are assessed on an annual basis and calculated by applying to an interim period's pre-tax income the tax rate that would be applicable to expected total annual earnings.

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Group'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 developing material accounting estimates, the Group 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 accounting estimates. The estimates and underlying assumptions

are reviewed on an ongoing basis. For the summary of critical accounting judgments and key sources of estimation uncertainty, refer to the consolidated financial statements for the year ended December 31, 2025.

1. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS (FVTPL) March 31, 2026 December 31, 2025 March 31, 2025

   Financial assets at FVTPL - current

   Financial assets mandatorily classified as at FVTPL
   Derivative financial assets (not under hedge accounting) Foreign exchange forward contracts	$ 4,080		$ 1,678		$ 201,183
   Non-derivative financial assets Mutual funds	1,814,728		684,332		868,358
   Convertible bonds	136,657		132,889		-
   	$ 1,955,465		$ 818,899		$ 1,069,541
   Financial assets at FVTPL - non-current
   Financial assets mandatorily classified as at
   FVTPL Derivative financial assets (not under hedge accounting) Redemption options on convertible bonds	$	-	$	-	$	600
   Non-derivative financial assets
   Convertible bonds	-		-		130,462
   Mutual funds	297,011		294,580		292,683
   	$ 297,011		$ 294,580		$ 423,745
   Financial liabilities at FVTPL - current
   Financial liabilities held for trading Derivative financial liabilities (not under hedge accounting) Foreign exchange forward contracts	$ 226,150		$ 197,434		$ 35,635

   At the end of the reporting period, outstanding foreign exchange forward contracts not under hedge accounting were as follows:

   Currency Maturity Date Notional Amount (In Thousands)

   March 31, 2026

   Buy USD:RMB 2026.04.13-2027.01.20 USD35,500

   Sell EUR:NTD 2026.04.07-2026.06.24 EUR17,000

   Sell RMB:NTD 2026.04.14-2026.09.30 RMB300,000

   Sell USD:NTD 2026.04.07-2026.07.13 USD40,000

   Sell RMB:USD 2026.06.17-2027.03.30 RMB1,810,713

   December 31, 2025

   Buy USD:RMB 2026.01.20-2026.09.08 USD35,500

   Sell EUR:NTD 2026.01.05-2026.03.30 EUR19,000

   Sell RMB:NTD 2026.01.14-2026.03.31 RMB290,000

   Sell USD:NTD 2026.01.05-2026.03.30 USD43,500

   Sell RMB:USD 2026.01.16-2026.12.30 RMB1,796,061

   March 31, 2025

   Buy USD:RMB 2025.04.11-2026.01.20 USD40,500

   Sell EUR:NTD 2025.04.10-2025.04.30 EUR10,000

   Sell RMB:NTD 2025.04.11-2025.06.10 RMB320,000

   Sell USD:NTD 2025.04.07-2025.04.28 USD37,000

   Sell RMB:USD 2025.05.08-2026.03.25 RMB1,840,508

   The Group entered into foreign exchange forward contracts to manage exposures to exchange rate fluctuations of foreign currency denominated assets and liabilities.

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

Investments in equity instruments at FVTOCI -

current

Domestic investments

Listed shares $ 16,876,518 $ 15,771,312 $ 11,738,333

Investments in equity instruments at FVTOCI -

non-current

Domestic investments

(Continued)

(Concluded)

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

The ranges of interest rates for time deposits and repurchase agreements with original maturities of more than 3 months and not exceeding 1 year were 1.39%-7.50%, 1.39%-7.30% and 1.28%-5.04% as of March

31, 2026, December 31, 2025 and March 31, 2025.

The ranges of interest rates for time deposits with original maturities of more than 1 year were 1.69%-2.60%, 1.69%-4.30% and 1.69%-3.99% as of March 31, 2026, December 31, 2025 and March 31,

2025.

The range of annual interest rates for corporate bonds were 1.00%-6.00%, 1.00%-6.00% and 0.75%-5.88% as of in March 31, 2026, December 31, 2025 and March 31, 2025.

Refer to Note 10 for information relating to credit risk management and impairment of financial assets at amortized cost.

1. CREDIT RISK MANAGEMENT FOR INVESTMENTS IN DEBT INSTRUMENTS

   The Group invests only in debt instruments that are rated the equivalent of investment grade or higher and have low credit risk for the purpose of impairment assessment. There was no significant increase in credit risk of such debt instrument since initial recognition leading to changes in interest rates and terms, and there was also no significant change in bond issuer's operation affecting the ability performing debt obligation. The Group continues to monitor credit risk exposures by closely tracking external credit ratings. The Group also reviews changes in bond yields and other public information to assess whether there has been a significant increase in credit risk.

2. DERIVATIVE FINANCIAL INSTRUMENTS FOR HEDGING March 31, 2026 December 31, 2025 March 31, 2025

   Financial assets for hedging - current (accounted for as other current assets, others)

   Foreign exchange forward contracts $ 8,781 $ 10,045 $ -

   The Group's hedge strategy is to enter into foreign exchange forward contracts to avoid exchange rate exposure of its foreign currency receipts and payments and to manage exchange rate exposure in of its forecasted foreign currency. When forecast purchases actually take place, basis adjustments are made to the initial carrying amounts of non-financial hedged items.

   The terms of foreign exchange forward contracts are coordinated with the hedged item. As the end of reporting period, outstanding foreign exchange forward not under hedge accounting by the Group were as follows:

   March 31, 2026

   Currency Maturity Date Notional Amount (In Thousands)

   Buy EUR:NTD 2026.04.07-2026.04.17 EUR6,000

   December 31, 2025

   Currency Maturity Date Notional Amount (In Thousands)

   Buy EUR:NTD 2026.04.07-2026.04.17 EUR6,000

3. NOTES RECEIVABLES AND ACCOUNTS RECEIVABLE

Notes receivable and accounts receivable were generated by operating activities.

At the end of the reporting period, the accounts receivable that are overdue but have not been recognized as provision for doubtful debts, the Group measures the credit quality has not significantly changed and the amount is still recoverable. Additionally, the Group holds collateral or other credit enhancements for some of the accounts receivable, the Group does not have the legal right to offset the receivables against the corresponding payables for the same counterparty.

The Group reviews the recoverable amounts at the end of the reporting period to ensure that adequate allowance is made for possible irrecoverable amounts.

The Group measures the loss allowance for trade receivables at an amount equal to lifetime ECLs. The expected credit losses on trade receivables are estimated using a provision matrix approach considering the past default experience of the debtor and an analysis of the debtor's current financial position, adjusted for general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecasted direction of economic conditions at the reporting date. As the Group's historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished according to the Group's different customer base.

The movements of the loss allowance of trade receivables were as follows:

March 31

Certain trade receivables overdue for more than one year have been secured by collateral in the form of the counterparties' pledged assets and other credit enhancement measures.

For the three months ended March 31, 2026 and 2025, the Group discounted a portion of its banker's acceptance bills in mainland China with an aggregate carrying amount of $1,463,135 thousand and

$1,156,815 thousand. For information on the transfer of financial instruments, refer to Note 30. The carrying amount of notes receivable pledged as collateral was disclosed in Note 32.

write-downs reversed of $6,476 thousand and inventory write-downs of $21,605 thousand, respectively. Inventory write-downs reversed was a result of increased selling prices.

1. BIOLOGICAL ASSETS For the Three Months Ended

   March 31

   	2026	2025
   Balance at January 1	$ 3,750,092	$ 3,641,170
   Increases due to planting	46,442	72,387
   Loss on changes in fair value less costs to sell	(592)	(4)
   Decreases due to harvesting	(42,989)	(51,052)
   Effect of foreign currency exchange differences	127,811	52,081
   Balance at March 31	$ 3,880,764	$ 3,714,582

   The biological assets and their fair values measured on a recurring basis (before deducting costs to sell) were as follows:

   March 31, 2026 December 31, 2025 March 31, 2025

   Eucalyptus (Level 3) $ 4,013,766 $ 3,878,606 $ 3,840,468

   The movements in the fair value of the assets within Level 3 of the hierarchy were as follows:

   For the Three Months Ended

   March 31

   	2026	2025
   Balance at January 1	$ 3,878,606	$ 3,763,862
   Increases due to planting	48,198	77,249
   Loss on changes in fair value less costs to sell	(614)	(4)
   Decreases due to harvesting	(44,615)	(54,481)
   Effect of foreign currency exchange differences	132,191	53,842
   Balance at March 31	$ 4,013,766	$ 3,840,468

   The financial risks related to biological assets arose from the estimation of eucalyptus volume since the method used in estimation is highly uncertain.

2. SUBSIDIARIES

   1. Subsidiaries included in the consolidated financial statements (for the diagram of investment structure of the Group as at March 31, 2026, refer to Table 1):

      Proportion of Ownership (%)

      	Investor	Investee	Main Business	March 31, 2026	December 31, 2025	March 31, 2025	Remark
      YFY Inc.		Chung Hwa Pulp Corporation	Pulp and paper production, trading and forestry business	56.9	56.9	56.9	1)
      		YFY International B.V.	Investment and holding	100.0	100.0	100.0	1)
      		YFY Global Investment B.V.	Investment and holding	100.0	100.0	100.0
      		Yuen Foong Yu Consumer Products Co., Ltd.	Production and sale of high quality paper and paper-related	59.1	59.1	59.1	1)
      			merchandise
      Shin Foong Specialty and Applied Materials			Production and sale of SBR (styrene butadiene rubber) latex	48.0	48.0	48.0	1) and 2)
      Co., Ltd.
      China Color Printing Co., Ltd.			Design and printing of magazines, posters and books	49.7	49.7	49.7	2)
      Effion Enertech Co., Ltd.			To operate cogeneration and provide power technology	100.0	100.0	100.0
      YFY Development Corp.			Real estate investment and development	100.0	100.0	100.0
      YFY Corporate Advisory & Services Co., Ltd.			Consulting	100.0	100.0	100.0
      Union Paper Corp.			Manufacture and sale of paper	18.9	18.9	18.9	2)
      YFY Paradigm Investment Co., Ltd.			Investment and holding	100.0	100.0	100.0	1)
      San Ying Enterprises Co., Ltd.			Design and construction of water processing and	100.0	100.0	100.0
      			environmental facilities
      YFY Japan Co., Ltd.			Trade of paper, chemical material and machinery	100.0	100.0	100.0
      Yuen Yan Paper Container Co., Ltd.			Sale and manufacture of corrugated paper and materials	50.9	50.9	50.9
      Fidelis IT Solutions Co., Ltd.			a. Provides services in information software and information	100.0	100.0	100.0
      			processing.
      			b. Wholesale of information software and electric appliances.
      SCI Co., Ltd.			Researching and development	100.0	100.0	100.0
      YFY Packaging Inc.			Production and sale of high-quality craft paper and corrugated	100.0	100.0	100.0	1)
      			paper
      		Ensilience Co., Ltd.	Renewable energy retail industry, energy technology service	100.0	100.0	100.0
      			industry and automated control equipment engineering
      YFY International B.V.		Guangdong Dingfung Pulp & Paper Co., Ltd.	Pulp and paper production and trading business	40.0	40.0	40.0
      		Zhaoqing Dingfung Forestry Co., Ltd.	Seedling cultivation and sales, reforestation, sales-cum-forest	13.5	13.5	13.5
      			logging and other forestry, processing and transportation
      		Hwa Fong Paper (Hong Kong) Co., Ltd.	Sale and print of paper merchandise	100.0	100.0	100.0
      		Yuen Foong Yu Blue Economy Natural	Technological development of agricultural resource recycling	100.0	100.0	100.0
      		Resource (Yangzhou) Co., Ltd.
      		YFY Mauritius Corp.	Investment and holding	100.0	100.0	100.0	1)
      YFY Mauritius Corp.		YFY Packaging (Yangzhou) Investment Co.,	Investment and holding	100.0	100.0	100.0
      		Ltd.
      		YFY Paper Enterprise (Fuzhou) Co., Ltd.	Manufacture and sale of paper and cardboard	100.0	100.0	100.0
      		YFY Paper Enterprise (Jiaxing) Co., Ltd.	Manufacture and sale of paper and cardboard	100.0	100.0	100.0
      YFY Packaging (Yangzhou)		YFY Paper Mfg. (Yangzhou) Co., Ltd.	Manufacture and sale of paper	100.0	100.0	100.0
      Investment Co., Ltd.		YFY Paper Enterprise (Qingdao) Co., Ltd.	Manufacture and sale of paper and cardboard	100.0	100.0	100.0
      		YFY Paper Enterprise (Kunshan) Co., Ltd.	Manufacture and sale of paper and cardboard	100.0	100.0	100.0
      		YFY Paper Enterprise (Zhongshan) Co., Ltd.	Manufacture and sale of paper and cardboard	100.0	100.0	100.0
      		YFY Paper Enterprise (Guangzhou) Co., Ltd.	Manufacture and sale of paper and cardboard	93.8	93.8	93.8
      		YFY Paper Enterprise (Dongguan) Co., Ltd.	Manufacture and sale of paper and cardboard	100.0	100.0	100.0
      		YFY Paper Enterprise (Tianjin) Co., Ltd.	Manufacture and sale of paper and cardboard	100.0	100.0	100.0
      		YFY Paper Enterprise (Suzhou) Co., Ltd.	Manufacture and sale of paper and cardboard	100.0	100.0	100.0
      		YFY Paper Enterprise (Xiamen) Co., Ltd.	Manufacture and sale of paper and cardboard	100.0	100.0	100.0
      		YFY Paper Enterprise (Shanghai) Co., Ltd.	Manufacture and sale of paper and cardboard	100.0	100.0	100.0
      		YFY Paper Enterprise (Nanjing) Co., Ltd.	Manufacture and sale of paper and cardboard	90.0	90.0	90.0
      YFY Paper Enterprise (Kunshan)		YFY Paper Enterprise (Nanjing) Co., Ltd.	Manufacture and sale of paper and cardboard	10.0	10.0	10.0
      Co., Ltd.
      YFY Packaging Inc.		Pek Crown Paper Co., Ltd.	Manufacture and sale of containers	66.8	66.8	66.8
      		YFY Cayman Co., Ltd.	Investment and holding	100.0	100.0	100.0
      YFY Cayman Co., Ltd.		Winsong Packaging Investment Company	Investment and holding	70.0	70.0	70.0
      		Limited
      		Willpower Industries Ltd.	Sale of various paper products	100.0	100.0	100.0
      Winsong Packaging Investment		YFY Packaging (Ha Nam) Co., Ltd.	Manufacture and sale of paper and cardboard	100.0	100.0	100.0
      Company Limited		YFY Packaging Thai Binh Co., Ltd.	Manufacture and sale of paper and cardboard	100.0	100.0	100.0
      YFY Packaging (Ha Nam) Co.,		YFY Packaging (Nghe An) Co., Ltd.	Manufacture and sale of paper and cardboard	100.0	100.0	-	3)
      Ltd.
      Willpower Industries Ltd.		Yuen Foong Yu Paper Enterprise (Vietnam)	Manufacture and sale of paper and cardboard	100.0	100.0	100.0
      		Binh Duong Co., Ltd.
      Yuen Foong Yu Paper Enterprise (Vietnam)			Manufacture and sale of paper and cardboard	100.0	100.0	100.0
      		Co., Ltd.
      Yuen Foong Yu Paper Enterprise		Yuen Foong Yu Paper Enterprise (Vietnam)	Manufacture and sale of cardboard	100.0	100.0	100.0
      (Vietnam) Co., Ltd.		Binh Chanh Co., Ltd.
      		Yuen Foong Yu Paper Enterprise (Dong Nai)	Manufacture and sale of paper and cardboard	100.0	100.0	100.0
      		Co., Ltd.
      YFY Packaging (Quang Ngai) Co., Ltd.			Manufacture and sale of paper and cardboard	100.0	100.0	100.0
      YFY Global Investment B.V. Arizon RFID Technology (Cayman) Co., Ltd.			Investment and holding	61.02	61.02	61.02	1)
      YFY Jupiter (Cayman Islands) Co., Ltd.			Investment and holding	84.0	84.0	78.4	4)
      YFY RFID Technologies Co., Ltd.			Investment and holding	100.0	100.0	100.0
      Arizon RFID Technology YFY RFID Co. Limited			Investment and holding	100.0	100.0	100.0
      (Cayman) Co., Ltd. Arizon Corporation			Product distribution and technical consulting services	100.0	100.0	100.0
      Arizon Technology (Vietnam) Co., Ltd.			Product distribution and R&D services	100.0	100.0	100.0
      YFY RFID Co. Limited Arizon RFID Technology Co., Ltd.			Sale and design of RFID (radio frequency identification)	99.98	99.98	99.98
      			products
      Arizon RFID Technology Co.,		Arizon RFID Technologies (Hong Kong) Co.,	Product distribution and R&D services	100.0	100.0	100.0
      Ltd.		Ltd.
      		Arizon JAPAN Co., Ltd.	Product distribution and technical consulting services	100.0	100.0	100.0
      YFY Jupiter (Cayman Islands)		Mobius105 Ltd.	Investment and holding	100.0	100.0	100.0
      Co., Ltd.		YFY Jupiter Limited	Design of packaging and sale of paper	100.0	100.0	100.0
      		Jupiter Prestige Group Holdings Limited	Investment and holding	59.0	59.0	59.0
      		YFY Jupiter US, Inc.	Design of packaging and sale of paper	100.0	100.0	100.0
      		YFY Jupiter Malaysia Sdn. Bhd.	Design of packaging and sale of paper	99.0	99.0	99.0
      		YFY Jupiter Indonesia, PT PMA	Design of packaging	1.0	1.0	1.0
      		YFY Jupiter (Thailand) Co., Ltd.	Design of packaging	0.01	0.01	0.01
      YFY Jupiter US, Inc.		YFY Jupiter Mexico, S. de R.L.	Design of packaging and sale of paper	1.0	1.0	1.0
      Mobius105 Ltd.		YFY Jupiter (Shenzhen) Ltd.	Design of packaging and sale of paper	100.0	100.0	100.0
      		YFY Jupiter Malaysia Sdn. Bhd.	Design of packaging and sale of paper	1.0	1.0	1.0
      		YFY Jupiter Mexico, S. de R.L.	Design of packaging and sale of paper	99.0	99.0	99.0
      		YFY Jupiter Indonesia, PT PMA	Design of packaging	99.0	99.0	99.0
      		Jupiter Vietnam Company Limited	Design of packaging	100.0	100.0	100.0
      		YFY Jupiter (Thailand) Co., Ltd.	Design of packaging	99.99	99.99	99.99
      YFY Jupiter (Shenzhen) Ltd.		Kunshan YFY Jupiter Green Packaging Ltd.	Design of packaging and sale of paper	100.0	100.0	100.0
      		YFY Jupiter Supply Chain Management	Design of packaging and sale of paper	100.0	100.0	100.0
      		Services (Shenzhen) Limited
      Jupiter Prestige Group Holdings		Jupiter Prestige Group Europe Limited	Graphic design	100.0	100.0	100.0
      Limited		Jupiter Prestige Group Australia Pty Ltd.	Graphic design	100.0	100.0	100.0
      		Opal BPM Limited	Design of process system and assistance in graphic design	82.5	82.5	82.5
      		Jupiter Prestige Group North America Inc.	Design of packaging and sale of paper	100.0	100.0	100.0
      		JPG CONTRAST UK LIMITED (originally	Graphic design	50.98	50.98	50.98
      		named as Foster and Baylis (Prestige)
      		Limited)
      						(Continued)

      Proportion of Ownership (%)

      Investor	Investee	Main Business	March 31, 2026	December 31, 2025	March 31, 2025	Remark
      Jupiter Prestige Group North	Contrast LLC Brand design		80.0	80.0	80.0
      America Inc.
      Jupiter Prestige Group Europe	Jupiter Prestige Group Asia Limited Graphic design	100.0		100.0	100.0
      Limited
      Opal BPM Limited	Opal BPM India Private Limited Workflow system coding		100.0	100.0	100.0
      	Opal BPM Consulting Limited Consulting services of workflow system coding		-	-	100.0	5)
      Yuen Foong Yu Consumer	Yuen Foong Yu Consumer Products Investment Investment and holding		100.0	100.0	100.0
      Products Co., Ltd.	Limited
      	Ever Growing Agriculture Biotech Co., Ltd. Wholesale of agriculture products		100.0	100.0	100.0	6)
      	Yuen Foong Shop Co., Ltd. Sale of consumer products in e-commerce		100.0	100.0	100.0
      	YFY Consumer Products, Co. IP management and sale of consumer products by		100.0	100.0	100.0
      	e-commerce
      Yuen Foong Yu Consumer	YFY Investment Co., Ltd. Investment and holding and sale of paper		100.0	100.0	100.0
      Products Investment Limited
      YFY Investment Co., Ltd.	YFY Family Care (Kunshan) Co., Ltd. Manufacture and sale of tissue paper and napkins		100.0	100.0	100.0
      	Yuen Foong Yu Consumer Products Manufacture and sale of tissue paper and napkins		100.0	100.0	100.0
      (Yangzhou) Co., Ltd.
      Yuen Foong Shop Co., Ltd.	Yuen Foong Shop (HK) Limited General trade		100.0	100.0	100.0
      	Livebricks Inc. Information processing services		100.0	100.0	100.0
      Shin Foong Specialty and	Shin Foong Trading Sdn. Bhd. Sale of SBR (styrene butadiene rubber) and industrial		100.0	100.0	100.0
      Applied Materials Co., Ltd.	chemicals
      YFY Development Corp.	Chung Hwa Pulp Corporation Pulp and paper production, trading and forestry business		0.1	0.1	0.1	1)
      	Yuen Foong Yu Consumer Products Co., Ltd. Production and sale of high quality paper and paper-related		1.9	1.9	1.9	1)
      	merchandise
      	Arizon RFID Technology (Cayman) Co., Ltd. Investment and holding		0.13	0.13	0.13	1)
      Effion Enertech Co., Ltd.	Fun Spring Circutech Co., Ltd. Waste (pollution) water treatment industry, resource recycling		98.1	98.1	98.1
      industry, environmental testing service industry
      YFY Paradigm Investment Co.,	Union Paper Corp. Manufacture and sale of paper		4.1	4.1	4.1	2)
      Ltd.	YFY Biotech Management Co., Ltd. Consulting		100.0	100.0	100.0
      	Chung Hwa Pulp Corporation Pulp and paper production, trading and forestry business		0.7	0.7	0.7	1)
      	Yuen Foong Yu Consumer Products Co., Ltd. Production and sale of high quality paper and paper-related		6.4	6.4	6.4	1)
      	merchandise
      	Yuen Yan Paper Container Co., Ltd. Sale and manufacture of corrugated paper and materials		0.07	0.07	0.07
      	Pek Crown Paper Co., Ltd. Manufacture and sale of containers		0.03	0.03	0.03
      	Arizon RFID Technology (Cayman) Co., Ltd. Investment and holding		0.13	0.13	0.13	1)
      San Ying Enterprises Co., Ltd.	Fun Spring Circutech Co., Ltd. Waste (pollution) water treatment industry, resource recycling		1.9	1.9	1.9
      industry, environmental testing service industry
      Chung Hwa Pulp Corporation	CHP International (BVI) Corporation Investment and holding		100.0	100.0	100.0
      	Hwa Fong Investment Co., Ltd. Investment and holding		100.0	100.0	100.0
      CHP International (BVI)	Guangdong Dingfung Pulp & Paper Co., Ltd. Pulp and paper production and trading business		60.0	60.0	60.0
      Corporation	Zhaoqing Dingfung Forestry Co., Ltd. Seedling cultivation and sales, reforestation, sales-cum-forest		20.2	20.2	20.2
      	logging and other forestry, processing and transportation
      	Syntax Communication (H.K.) Limited Sale and print of paper merchandise		100.00	100.00	100.00
      Hwa Fong Investment Co., Ltd.	Genovella Renewables Inc. Sale and production of fertilizer, retail sale of food products		100.00	100.00	100.00
      	and groceries, plant cultivation, refractory materials

      manufacturing, cement and concrete products manufacturing, refractory materials wholesale and sale of building material, manpower services and wholesale and sale of chemistry raw materials

      	Union Paper Corp.	Manufacture and sale of paper	10.7	10.7	10.7	2)
      Guangdong Dingfung Pulp &	Zhaoqing Dingfung Forestry Co., Ltd.	Seedling cultivation and sales, reforestation, sales-cum-forest	66.3	66.3	66.3
      Paper Co., Ltd.	Shenzhen Jinglun Paper Co., Ltd.	logging and other forestry, processing and transportation Sale of paper merchandise and import/export business	100.0	100.0	100.0
      Zhaoqing Dingfung Forestry Co.,	Zhaoqing Xinchuan Green Technology Co., Ltd. Guizhou Yuanfung Forestry Co., Ltd.	Environmental equipment technology research and development; construction of wastewater, flue gas, noise and solid waste treatment; pure water treatment construction; environmental technology consulting; sale of environmental protection equipment and chemical raw material; import and export of cargo and technology Seedling cultivation and sales, reforestation, sales-cum-forest	100.0 67.0	100.0 67.0	100.0 67.0
      Ltd.		logging and other forestry, processing and transportation
      					(Concluded)

      Remarks:

      1. Except for the review financial statements for the three months ended March 31, 2026 and 2025 of YFY International B.V., YFY Mauritius Corp., Chung Hwa Pulp Corporation, Yuen Foong Yu Consumer Products Co., Ltd., YFY Packaging Inc., Shin Foong Specialty and Applied Materials Co., Ltd., YFY Paradigm Investment Co., Ltd. and Arizon RFID Technology (Cayman) Co., Ltd. and investees mentioned in Tables 7 and 8, the financial statements of the remaining non-significant subsidiaries were not reviewed by the auditors.

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

      3. YFY Packaging (Nghe An) Co., Ltd. was established in August 2025 and included in the consolidated financial statement.

      4. Due to the equity changes such as YFY Jupiter (Cayman Islands) Co., Ltd. purchase of treasury shares for the year ended December 31, 2025, the shareholdings ratio of the YFY Global Investment

         B.V. in YFY Jupiter (Cayman Islands) Co., Ltd. were changed.

      5. Opal BPM Consulting Limited completed its liquidation process in September 2025. Consequently, it has not been included in the consolidated financial statements since September 2025.

      6. YFY Consumer Products Corporation acquired a 15% equity interest in Yongshengpu Agricultural Biotechnology Company from a related party for a cash consideration of NT$73,200 thousand in March 2025.

   2. Details of subsidiaries that have material non-controlling interests

      Proportion of Ownership and Voting Rights Held by Non-controlling Interests

      Name of Subsidiary	March 31, 2026	December 31, 2025	March 31, 2025
      Chung Hwa Pulp Corporation	42.3%	42.3%	42.3%
      Chung Hwa Pulp Corporation and subsidiaries
      	March 31,	December 31,	March 31,
      	2026	2025	2025
      Current assets	$ 20,547,530	$ 20,212,472	$ 19,388,298
      Non-current assets	20,381,905	20,228,875	19,997,143
      Current liabilities	(17,495,767)	(17,573,778)	(16,839,215)
      Non-current liabilities	(4,586,776)	(4,280,428)	(4,383,601)
      Equity	18,846,892	18,587,141	18,162,625
      Consolidated adjustments	94,109	94,109	94,109
      Adjusted equity	$ 18,941,001	$ 18,681,250	$ 18,256,734
      Equity attributable to:
      Owners of Chung Hwa Pulp Corporation	$ 9,468,714	$ 9,366,901	$ 9,076,365
      Non-controlling interests of Chung Hwa
      Pulp Corporation	6,930,564	6,856,042	6,643,386
      Non-controlling interests of Chung Hwa
      Pulp Corporation's subsidiaries	2,541,723	2,458,307	2,536,983
      	$ 18,941,001	$ 18,681,250	$ 18,256,734
      For the Three Months Ended March 31
      		2026	2025
      Operating revenue		$ 4,394,312	$ 4,829,805
      Loss for the period		$ (176,885)	$ (336,687)
      Other comprehensive income for the period		433,809	45,980
      Total comprehensive income (loss) for the period		$ 256,924	$ (290,707)
      			(Continued)

      For the Three Months Ended

      March 31

      	2026	2025
      Profit (loss) attributable to:
      Owners of Chung Hwa Pulp Corporation	$ (101,937)	$ (199,548)
      Non-controlling interests of Chung Hwa Pulp Corporation Non-controlling interests of Chung Hwa Pulp Corporation's	(74,612)	(143,302)
      subsidiaries (336)		6,163
      $ (176,885)		$ (336,687)
      Total comprehensive income (loss) attributable to:
      Owners of Chung Hwa Pulp Corporation	$ 99,978	$ (193,578)
      Non-controlling interests of Chung Hwa Pulp Corporation Non-controlling interests of Chung Hwa Pulp Corporation's	73,530	(138,949)
      subsidiaries 83,416		41,820
      $ 256,924		$ (290,707)
      Net cash inflow (outflow) from:
      Operating activities	$ 334,531	$ (931,547)
      Investing activities	(488,562)	(883,558)
      Financing activities	31,661	1,375,594
      Effects of exchange rate changes	(22,834)	8,047

      Net cash outflow $ (145,204) $ (431,464)

      (Concluded)

3. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

   March 31,		December 31,	March 31,
   2026		2025	2025
   Material associates
   E Ink Holdings Inc.	$ 10,467,904	$ 11,172,161	$ 9,097,697
   Associates that are not individually material	244,422	244,557	263,536
   	$ 10,712,326	$ 11,416,718	$ 9,361,233
   a. Material associates

   Proportion of Ownership and Voting Rights Name of Associate March 31, 2026 December 31, 2025 March 31, 2025

   E Ink Holdings Inc. 16.0% 16.0% 16.1%

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

   In 2013, the Group increased its investment in E Ink Holdings Inc. by buying 40,000 thousand shares of the investee's privately placed ordinary shares for $658,000 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 May 14, 2026, the report date. The other rights and obligations are the same as those of ordinary shares.

   Investments in material associates were 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 financial statements which have been reviewed.

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

   March 31, 2026 December 31, 2025 March 31, 2025

   $ 19,747,619 $ 28,644,898 $ 38,337,868

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

   	March 31, 2026	December 31, 2025	March 31, 2025
   Current assets	$ 35,562,862	$ 33,189,321	$ 33,867,534
   Non-current assets	74,134,845	74,055,846	59,731,437
   Current liabilities	(26,620,658)	(19,907,402)	(22,944,989)
   Non-current liabilities	(17,413,715)	(17,427,288)	(14,893,445)
   Equity	65,663,334	69,910,477	55,760,537
   Non-controlling interests	(1,235,967)	(1,200,067)	(695,960)
   	$ 64,427,367	$ 68,710,410	$ 55,064,577
   Proportion of the Group's ownership	16.0%	16.0%	16.1%
   Equity attributable to the Group	$ 10,306,860	$ 11,011,117	$ 8,844,237
   Goodwill	253,460	253,460	253,460
   Consolidated adjustments	(92,416)	(92,416)	-
   Carrying amount	$ 10,467,904	$ 11,172,161	$ 9,097,697
   For the Three Months Ended March 31
   	2026		2025
   Operating revenue	$ 8,633,490		$ 8,059,437
   Net profit for the period	$ 2,795,198		$ 2,196,959
   Other comprehensive income (loss)	(515,767)		1,440,189
   Total comprehensive income for the period	$ 2,279,431		$ 3,637,148

   b. Aggregate information of associates that are not individually material

   For the Three Months Ended

   March 31

   2026 2025

   The Group's share of:

   Net gain (loss) for the period	$ (4,133)	$ 1,072
   Total comprehensive income (loss) for the period	$ (4,133)	$ 1,072

   Investments in associates that are not individually material were accounted for using the equity method and the share of profit and other comprehensive income of those investments were calculated based on financial statements which have not been reviewed.

4. PROPERTY, PLANT AND EQUIPMENT

Freehold Land Buildings

Machinery and Equipment

Miscellaneous Equipment

Construction

in Progress Total

Cost

Reclassified as investment

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 3-50 years

Machinery and equipment 3-20 years

Miscellaneous equipment 3-50 years

The non-cash investing activities of the Group for the three months ended March 31, 2026 and 2025 were as follows:

March 31

The Group acquired land for expansion of the factory spaces. However, the Group was unable to transfer the ownership of the land due to legal restrictions, therefore choosing to enter into a name-borrowing contract with others. The others consented to fully cooperate with the Group in changing the ownership of the land in the future and pledge with the lands in priority to the Group. As of March 31, 2026, December 31, 2025 and March 31, 2025, the lands registered by others were $656,915 thousand, $644,876 thousand and $643,917 thousand, respectively (accounted for as property, plant and equipment and investment properties).

For the amounts of collateral pledged for bank borrowings, refer to Note 32.

March 31

Except for the aforementioned addition and recognized depreciation expense, the Group did not have significant sublease or impairment of right-of-use assets during the three months ended March 31, 2026 and 2025.

For the amounts of collateral pledged for bank borrowings, refer to Note 32.

The fair values of the investment properties owned by the Group were $11,649,694 thousand, $10,817,103 thousand and $10,218,724 thousand as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively. The valuations were partially made by the Group using market transaction prices for similar properties and not by independent qualified professional valuers. The rental incomes were $33,092 thousand and $21,625 thousand for the three months ended March 31, 2026 and 2025, respectively.

The investment properties held by the Group were depreciated over their estimated useful lives of 20 to 55 years, using the straight-line method.

All of the Group's investment properties were held under freehold interests.

Current borrowings include bank credit and bank secured loans. As of March 31, 2026, December 31, 2025 and March 31, 2025, the interest rate intervals of bank credit loans were 1.78%-6.95% per annum, 1.78%-6.10% per annum and 1.78%-5.37% per annum, respectively.

The commercial paper is due within one year. Interest rate intervals on these bills payable were 1.80%-2.14% per annum, 1.82%-2.14% per annum and 1.90%-2.22% per annum as of March 31, 2026,

December 31, 2025 and March 31, 2025, respectively.

Long-term bank loans included syndicated, credit and secured loans. Syndicated loans with monthly interest payments expire in December 2030 and have interest rate intervals of 2.10%-2.17% per annum, 2.09%-2.17% per annum and 2.09%-2.27% per annum as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively; secured and credit loans expire in August 2034 and have interest rate intervals of 1.18%-6.41% per annum, 1.18%-5.29% per annum and 0.30%-2.70% per annum as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively.

The subsidiary, Arizon RFID Technology (Cayman) Co., Ltd. resolved on August 7, 2024, to issue its first unsecured convertible bonds for first time in Taiwan. The bonds were issued on October 15, 2024, with a maturity period of 3 years, a total face value of NT$1,000,000 thousand, a coupon rate of 0%, and a total issuance amount of NT$1,114,566 thousand.

Each bondholder has the right to convert the bond into common shares of Arizon RFID Technology (Cayman) Co., Ltd. at a price of NT$294.9 per share. In case of stock rights or dividends, the conversion price will be adjusted according to the conversion rules. Bondholders may request to convert their bonds into Company's common shares at any time within the period from the following day after three months from the issuance date (January 16, 2025) to maturity date (October 15, 2027).

From January 16, 2025 to September 5, 2027, if the bonds have not been converted and the closing price of the company's common stock on TWSE, for a total of 30 days consecutive trading days, has reached at least 130% of the total amount of the conversion price, the subsidiary, Arizon RFID Technology (Cayman) Co., Ltd. may send a registered "Bond Redemption Notice" to bondholders within the following 30 business days. The period for this notice will start from the date the subsidiary sends the letter, with the redemption base date being the last day of that 30-day period. The subsidiary will redeem the bonds for cash at face value within five business days after the redemption base date.

This convertible bond includes both liability and equity component. The equity component was expressed under equity as capital surplus - options. The effective interest rate of the liability component at initial recognition is 2.32%.

Proceeds from issuance (less transaction costs of $7,307 thousand) $ 1,107,259 Equity component (less transaction costs allocated to the equity component of $1,161

thousand) (176,205)

Components of net debt as of the issuance date (bonds payable of $932,954 thousand

1. RETIREMENT BENEFIT PLANS

   Employee benefit expenses in respect of the Group's defined benefit retirement plans were $6,167 thousand and $7,363 thousand for the three months ended March 31, 2026 and 2025, respectively, and were calculated using the respective actuarially determined annual pension cost discount rates as of December 31, 2025 and 2024.

2. EQUITY

   1. Ordinary shares

      March 31, 2026 December 31, 2025 March 31, 2025

      Numbers of shares authorized (in thousands) 2,200,000 2,200,000 2,200,000 Value of shares authorized $ 22,000,000 $ 22,000,000 $ 22,000,000 Number of shares issued and fully paid (in

      thousands) 1,660,372 1,660,372 1,660,372

      Value of shares issued $ 16,603,715 $ 16,603,715 $ 16,603,715

      Fully paid ordinary shares, which have a par value of $10, carry one vote per share and carry a right to dividends.

   2. Capital surplus

      Depending on the source, capital surplus may be used in these ways: (1) arising from shares issued in excess of par (including share premiums from the issuance of ordinary shares for mergers, treasury share transactions, and excess of the consideration received over the carrying amount of the subsidiaries' net assets during disposal or acquisition) - may be used to offset a deficit; in addition, when the Company has no deficit, this capital surplus may be distributed as cash dividends, or may be transferred to share capital once a year within a certain percentage of the Company's capital surplus; (2) arising from the effect of changes in ownership interests in subsidiaries due to equity transactions other than actual disposals or acquisitions - may be used to offset a deficit.; (3) arising from changes in equity in associates - may be used in compliance with related regulations if the capital surplus source is either of the foregoing two sources.

   3. Retained earnings and dividend policy

      Under the dividend policy as set forth in the amended Articles, where the Company made profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside as legal reserve 10% of the remaining profit, setting aside or reversing a special reserve in accordance with the laws and regulations or in the necessary situation, and then any remaining profit together with any undistributed retained earnings shall be used for distribution of dividends and bonuses to shareholders.

      In making its dividend policy, the Company takes into account future capital expenditures and working capital requirements. Based on this policy, dividends should be distributed as follows:

      1. At least 20% as cash dividends; and

      2. The remainder after the distribution of cash dividends as share dividends. If there is a requirement for capital expenditures, the Company may distribute only share dividends.

         The board of directors of the Company is authorized to adopt a special resolution to distribute dividends and bonuses in cash and a report of such distribution should be submitted in the shareholders' meeting.

         Appropriation of earnings to the legal reserve shall be made until the legal reserve equals the Company's paid-in capital. The legal reserve may be used to offset deficits. If the Company has no deficit and the legal reserve has exceeded 25% of the Company's paid-in capital, the excess may be transferred to capital or distributed in cash.

         Items referred to under Rule No. 1090150022 and the directive titled "Questions and Answers for Special Reserves Appropriated Following Adoption of IFRS Accounting Standards" should be appropriated to or reversed from a special reserve by the Company. For any subsequent reversal of the deduction in other shareholders' equity, the appropriate amount of earnings distribution should be reversed from the net debit balance.

         The appropriations of earnings for 2025 and 2024 were as follows:

         Appropriation of Earnings

         For the Year Ended December 31

         	2025	2024
         Legal reserve	$ 218,969	$ 181,304
         Cash dividends	$ 1,660,372	$ 1,328,297
         Cash dividends per share (NT$)	$ 1	$ 0.8

         The aforementioned appropriation for cash dividends had been resolved by the board of directors on March 13, 2026 and March 14, 2025. The other appropriations of earnings for 2024 were resolved by the shareholders' meetings on June 20, 2025. The other proposed appropriations of earnings for 2025 will be resolved by the shareholders' meeting to be held on June 12, 2026.

   4. Other equity items

      Exchange Differences on Translation of Foreign Financial Statements

      Unrealized Gains (Losses) on Financial Assets Measured at Fair Value Through Other Comprehensive Income

      Gains (Losses) on Hedging

      Instruments Total

      For the three months ended March 31, 2026

      Balance at January 1	$ (171,144)	$ 30,295,770	$ 5,800	$ 30,130,426
      Exchange differences on translation of foreign
      financial statements	785,080	-	-	785,080
      Unrealized gain on financial assets measured at
      FVTOCI	-	3,842,926	-	3,842,926
      Losses on hedging instruments	-	-	(730)	(730)
      Share of other comprehensive income (loss) of
      associates accounted for using equity method	37,079	(116,210)	-	(79,131)
      Changes in equity of associates accounted for
      using equity method	-	(4,345)	-	(4,345)
      Cumulative unrealized loss of equity instruments transferred to retained earnings due to disposal	-	(162,265)	-	(162,265)
      Balance at March 31	$ 651,015	$ 33,855,876	$ 5,070	$ 34,511,961
      				(Continued)

      Exchange Differences on Translation of Foreign Financial Statements

      Unrealized Gains (Losses) on Financial Assets Measured at Fair Value Through Other Comprehensive Income

      Gains (Losses) on Hedging

      Instruments Total

      For the three months ended March 31, 2025

      Balance at January 1	$ 1,170,374	$ 20,849,638	$ - $ 22,020,012
      Exchange differences on translation of foreign
      financial statements	414,916	-	- 414,916
      Unrealized loss on financial assets measured at
      FVTOCI	-	(927,373)	-	(927,373)
      Share of other comprehensive income of associates
      accounted for using equity method	81,929	138,994	-	220,923
      Changes in equity of associates accounted for
      using equity method	-	(2,458)	-	(2,458)
      Changes in ownership interests in subsidiaries.	(982)	(15,829)	-	(16,811)
      Balance at March 31	$ 1,666,237	$ 20,042,972	$ -	$ 21,709,209 (Concluded)
      e. Non-controlling interests

      For the Three Months Ended

      March 31

      2026 2025

      Balance at January 1 $ 16,866,256 $ 16,597,171 Share of profit for the period 47,753 18,635 Other comprehensive income (loss) for the period:

      Exchange differences on translation of foreign financial

      statements 194,781 87,542

      Unrealized gains (loss) on financial assets measured at

      FVTOCI	163,759	(39,472)
      Losses on hedging instruments	(534)	-
      Share of other comprehensive income (loss) of associates
      accounted for using the equity method	(3,797)	10,595
      Cash dividends	(28,987)	(82,887)
      Changes in equity of associates accounted for using equity
      method	997	313
      Changes in ownership interests in subsidiaries	2,234	241,433
      Difference between consideration and carrying amount of
      subsidiaries acquired or disposed	-	(58,618)
      Changes in non-controlling interests	-	147,990

      Balance at March 31 $ 17,242,462 $ 16,922,702

3. REVENUE