Interim report
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1 Stock Code: 1476 ECLAT TEXTILE CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements With Independent Auditors’ Review Report For the Nine Months Ended September 30, 2025 and 2024 Address: 17F., No. 738, Zhongyang Rd., Xinzhuang Dist., New Taipei City Telephone: (02)2299-6000 The independent auditors’ review r eport and the accompanying consolidated financial statements a re the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors’ review r eport and consolidated financial statements, the Chinese version shall prevail.
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2 Table of Contents Contents Page 1. Cover Page 1 2. Table of Contents 2 3. Independent Auditors’ Review Report 3 4. Consolidated Balance Sheets 4 5. Consolidated Statements of Comprehensive Income 5 6. Consolidated Statements of Changes in Equity 6 7. Consolidated Statements of Cash Flows 7 8. Notes to Consolidated Financial Statements (1) Company history 8 (2) Approval date and procedures of the consolidated financial statements 8 (3) New standards, amendments and interpretations adopted 8～10 (4) Summary of material accounting policies 10～11 (5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty 11 (6) Explanation to significant accounts 12～26 (7) Related party transactions 26～27 (8) Pledged assets 27 (9) Commitments and contingencies 27～28 (10) Losses due to major disasters 28 (11) Subsequent events 28 (12) Other 28 (13) Other disclosures (a) Information on significant transactions 29～31 (b) Information on investees 31～32 (c) Information on investment in Mainland China 32 (14) Segment information 33
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3-1 Independent Auditors’ Review Report To the Board of Directors of Eclat Textile Co., Ltd.: Introduction We have reviewed the accompanying consolidated balance sheets of Eclat Textile Co., Ltd. (the "Company") and its subsidiaries (together referred to as the "Group") as of September 30, 2025 and 2024, and the related consolidated statements of comprehensive income for the three months and the nine months ended September 30, 2025 and 2024, as well as the changes in equity and cash flows for the nine months ended September 30, 2025 and 2024, and notes to the consolidated financial statements, including a summary of material 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 Standards (“IASs”) 34, “I nterim 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. Scope of Review Except as explained in the Basis for Qualified Conclusion paragraph, we conducted our reviews in accordance with the Standard on Review Engagements 2410, “ Review of Financial Information Performed by the Independent Auditor of the Entity”of the Republic of China. A review of the 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 conducted in accordance with the Standards on Auditing of the Republic of China and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Basis for Qualified Conclusion As stated in note 4(b), the consolidated financial statements included the financial statements of certain non- significant subsidiaries, which were not reviewed by independent auditors. These financial statements reflect total assets amounting to $1,077,568 thousand and $1,141,507 thousand, constituting 3.23% and 3.40% of the total consolidated assets as of September 30, 2025 a nd 2024, respectively, total liabilities amounting to $480,265 thousand and $450,362 thousand, constituting 8.57% and 6.87% of the total consolidated liabilities as of September 30, 2025 a nd 2024, respectively. Also, the total comprehensive loss amounting to $357,856 thousand, $349,082 t housand, $1,199,030 t housand and $988,308 thousand, constituting (18.40)%, (21.35)%, (34.22)% and (19.41)% of the total consolidated comprehensive income for the three months and nine months ended September 30, 2025 and 2024, respectively.
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3-2 Qualified Conclusion Except for the adjustments, if any, as might have been determined to be necessary had the financial statements of certain consolidated subsidiaries described in the Basis for Qualified Conclusion paragraph above been reviewed by independent auditors, based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as of September 30, 2025 and 2024, and of its consolidated financial performance for the three months and nine months then ended, as well as its consolidated cash flows for the nine months t hen ended 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 review resulting in this independent auditors’ review report are Hui-Chih Kou and Hsin-Yi Kuo. KPMG Taipei, Taiwan (Republic of China) November 6, 2025 Notes to Readers The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with the 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 h ave 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.
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(English Translation of Consolidated Financial Statements Originally Issued in Chinese) 4 ECLAT TEXTILE CO., LTD. AND SUBSIDIARIES Consolidated Balance Sheets September 30, 2025, December 31, 2024, and September 30, 2024 (Expressed in Thousands of New Taiwan Dollars) September 30, 2025 December 31, 2024 September 30, 2024 Assets Amount % Amount % Amount % Current assets: 1100 Cash and cash equivalents (note 6(a)) $ 3,488,106 11 3,618,179 10 3,578,097 11 1150 Notes receivable (note 6(b)) 6,830 - 17,451 - 16,880 - 1170 Accounts receivable, net (note 6(b)) 5,236,391 16 6,535,797 18 5,805,003 17 1200 Other receivables 40,843 - 31,308 - 19,957 - 1220 Current tax assets - - 71 - 974 - 1310 Inventories, net (note 6(c)) 5,481,288 16 5,521,849 16 5,414,867 16 1470 Other current assets (notes 6(f) and 8) 5,482,483 16 5,783,367 16 4,497,807 14 Total current assets 19,735,941 59 21,508,022 60 19,333,585 58 Non-current assets: 1550 Investments accounted for using equity method - - - - - - 1600 Property, plant and equipment (notes 6(d) and 7) 12,302,607 37 12,993,610 36 12,925,824 39 1755 Right-of-use assets 65,723 - 67,263 - 68,220 - 1760 Investment property, net (note 6(e)) 745,582 2 752,694 2 755,064 2 1780 Intangible assets 23,637 - 26,838 - 27,367 - 1840 Deferred tax assets 13,222 - 13,222 - 47,370 - 1975 Net defined benefit asset, non-current 168,450 1 163,930 1 120,221 - 1990 Other non-current assets, others (note 6(f)) 309,611 1 339,541 1 339,816 1 Total non-current assets 13,628,832 41 14,357,098 40 14,283,882 42 Total assets $ 33,364,773 100 35,865,120 100 33,617,467 100 September 30, 2025 December 31, 2024 September 30, 2024 Liabilities and Equity Amount % Amount % Amount % Current liabilities: 2100 Current borrowings (note 6(g)) $ 408,420 1 1,804,322 5 1,149,370 4 2150 Notes payable 142,753 - 100,093 - 148,170 - 2170 Accounts payable 2,139,978 7 2,163,054 6 2,301,961 7 2200 Other payables (notes 6(h) and (m)) 1,880,714 6 1,516,604 4 2,041,541 6 2230 Current tax liabilities 435,136 2 855,720 3 521,368 2 2280 Current lease liabilities 14,875 - 13,358 - 13,947 - 2399 Other current liabilities, others 404,926 1 313,705 1 297,235 1 Total current liabilities 5,426,802 17 6,766,856 19 6,473,592 20 Non-current liabilities: 2570 Deferred tax liabilities 102,890 - 103,078 - 13,366 - 2580 Non-current lease liabilities 54,857 - 57,628 - 57,567 - 2640 Net defined benefit liability, non-current 12,563 - 9,428 - 7,630 - 2645 Guarantee deposits received 6,422 - 6,469 - 6,446 - Total non-current liabilities 176,732 - 176,603 - 85,009 - Total liabilities 5,603,534 17 6,943,459 19 6,558,601 20 Equity (note 6(j)) 3110 Ordinary share 2,743,671 8 2,743,671 8 2,743,671 8 3200 Capital surplus 3,769,803 11 3,769,803 11 3,769,803 11 Retained earnings: 3310 Legal reserve 5,993,685 18 5,326,981 15 5,326,981 16 3350 Unappropriated retained earnings 15,355,948 46 16,753,936 46 15,020,916 45 Total retained earnings 21,349,633 64 22,080,917 61 20,347,897 61 3490 Other equity, others (101,868) - 327,270 1 197,495 - Total equity 27,761,239 83 28,921,661 81 27,058,866 80 Total liabilities and equity $ 33,364,773 100 35,865,120 100 33,617,467 100 See accompanying notes to consolidated financial statements.
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5 (English Translation of Consolidated Financial Statements Originally Issued in Chinese) ECLAT TEXTILE CO., LTD. AND SUBSIDIARIES Consolidated Statements of Comprehensive Income For the Three Months and Nine Months Ended September 30, 2025 and 2024 (Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Share) For the three months ended September 30 For the nine months ended September 30 2025 2024 2025 2024 Amount % Amount % Amount % Amount % 4000 Operating revenue (note 6(l)) $ 9,633,426 100 10,031,710 100 28,725,625 100 27,257,625 100 5000 Operating costs (notes 6(c), (d), (h), (m) and 12) 6,872,309 71 6,789,505 68 20,640,448 72 18,745,280 69 Gross profit from operations 2,761,117 29 3,242,205 32 8,085,177 28 8,512,345 31 Operating expenses (notes 6(d), (e), (h), (m), 7 and 12): 6100 Selling expenses 470,193 5 481,575 5 1,394,818 5 1,337,673 5 6200 Administrative expenses 404,572 4 404,123 4 1,242,147 4 1,166,305 4 6300 Research and development expenses 45,990 1 47,176 - 131,536 1 122,917 - Total operating expenses 920,755 10 932,874 9 2,768,501 10 2,626,895 9 Net operating income 1,840,362 19 2,309,331 23 5,316,676 18 5,885,450 22 Non-operating income and expenses (notes 6(d), (n), 7 and 12): 7010 Other income 8,042 - 7,979 - 24,184 - 23,306 - 7020 Other gains and losses, net 219,721 3 (99,254) (1) (397,633) (1) 299,103 1 7050 Finance costs (11,460) - (18,406) - (57,657) - (58,313) - 7100 Interest income 32,134 - 15,433 - 119,845 - 72,197 - Total non-operating income and expenses 248,437 3 (94,248) (1) (311,261) (1) 336,293 1 7900 Income before income tax 2,088,799 22 2,215,083 22 5,005,415 17 6,221,743 23 7950 Less: Tax expense (note 6(i)) 436,416 5 439,880 4 1,072,458 3 1,287,724 5 8200 Profit 1,652,383 17 1,775,203 18 3,932,957 14 4,934,019 18 8300 Other comprehensive income: 8360 Components of other comprehensive income (loss) that will be reclassified to profit or loss 8361 Exchange differences on translation of foreign financial statements 292,479 3 (140,394) (2) (429,138) (2) 157,966 1 8399 Less: Income tax related to components of other comprehensive income that will be reclassified to profit or loss - - - - - - - - Total components of other comprehensive income (loss) that will be reclassified to profit or loss (note 6(j)) 292,479 3 (140,394) (2) (429,138) (2) 157,966 1 8300 Other comprehensive income, net of income tax 292,479 3 (140,394) (2) (429,138) (2) 157,966 1 8500 Total comprehensive income $ 1,944,862 20 1,634,809 16 3,503,819 12 5,091,985 19 Earnings per share (in dollars) (note 6(k)) 9750 Basic earnings per share $ 6.02 6.47 14.33 17.98 9850 Diluted earnings per share $ 6.02 6.47 14.33 17.98 See accompanying notes to consolidated financial statements.
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6 (English Translation of Consolidated Financial Statements Originally Issued in Chinese) ECLAT TEXTILE CO., LTD. AND SUBSIDIARIES Consolidated Statements of Changes in Equity For the Nine Months Ended September 30, 2025 and 2024 (Expressed in Thousands of New Taiwan Dollars) Retained Earnings Other Equity Ordinary share Capital surplus Legal reserve Unappropriated retained earnings Total retained earnings Exchange differences on translation of foreign financial statements Total equity Balance at January 1, 2024 $ 2,743,671 3,769,547 4,809,262 14,308,572 19,117,834 39,529 25,670,581 Profit - - - 4,934,019 4,934,019 - 4,934,019 Other comprehensive income (loss) - - - - - 157,966 157,966 Total comprehensive income (loss) - - - 4,934,019 4,934,019 157,966 5,091,985 Appropriation and distribution of retained earnings: Legal reserve appropriated - - 517,719 (517,719) - - - Cash dividends of ordinary share - - - (3,703,956) (3,703,956) - (3,703,956) Other changes in capital surplus: Other changes in capital surplus - 256 - - - - 256 Balance at September 30, 2024 $ 2,743,671 3,769,803 5,326,981 15,020,916 20,347,897 197,495 27,058,866 Balance at January 1, 2025 $ 2,743,671 3,769,803 5,326,981 16,753,936 22,080,917 327,270 28,921,661 Profit - - - 3,932,957 3,932,957 - 3,932,957 Other comprehensive income (loss) - - - - - (429,138) (429,138) Total comprehensive income (loss) - - - 3,932,957 3,932,957 (429,138) 3,503,819 Appropriation and distribution of retained earnings: Legal reserve appropriated - - 666,704 (666,704) - - - Cash dividends of ordinary share - - - (4,664,241) (4,664,241) - (4,664,241) Balance at September 30, 2025 $ 2,743,671 3,769,803 5,993,685 15,355,948 21,349,633 (101,868) 27,761,239 See accompanying notes to consolidated financial statements.
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7 (English Translation of Consolidated Financial Statements Originally Issued in Chinese) ECLAT TEXTILE CO., LTD. AND SUBSIDIARIES Consolidated Statements of Cash Flows For the Nine Months Ended September 30, 2025 and 2024 (Expressed in Thousands of New Taiwan Dollars) For the nine months ended September 30 2025 2024 Cash flows from (used in) operating activities: Profit before tax $ 5,005,415 6,221,743 Adjustments: Adjustments to reconcile profit (loss): Depreciation expense 601,743 653,383 Amortization expense 23,636 19,270 Interest expense 57,657 58,313 Interest income (119,845) (72,197) Loss (gain) on disposal of property, plant and equipment 96 (1,508) Property, plant and equipment transferred to expenses - 746 Loss (gain) on disposal of non-current assets held for sale - (56,697) Gain on lease modification - (334) Total adjustments to reconcile profit 563,287 600,976 Changes in operating assets and liabilities: Decrease (increase) in notes receivable 10,621 2,579 Decrease (increase) in accounts receivable 1,299,406 (1,113,679) Decrease (increase) in other receivables (8,222) 3,151 Decrease (increase) in inventories 40,858 (1,012,543) Decrease (increase) in other current assets (132,994) 115,485 Decrease (increase) in other financial assets (69,601) (816) Decrease (increase) in other operating assets (4,520) (3,155) Increase (decrease) in notes payable 42,660 57,867 Increase (decrease) in accounts payable (23,076) 726,112 Increase (decrease) in other payables 374,250 589,177 Increase (decrease) in other current liabilities 91,221 98,196 Increase (decrease) in net defined benefit liability 3,135 1,928 Total changes in operating assets and liabilities 1,623,738 (535,698) Total adjustments 2,187,025 65,278 Cash inflow generated from operations 7,192,440 6,287,021 Interest received 118,532 79,379 Interest paid (66,556) (58,020) Income taxes paid (1,492,971) (2,325,115) Net cash flows from (used in) operating activities 5,751,445 3,983,265 Cash flows from (used in) investing activities: Proceeds from disposal of non-current assets held for sale - 82,560 Acquisition of property, plant and equipment (269,087) (400,750) Proceeds from disposal of property, plant and equipment 5 9,543 Increase in refundable deposits (2,278) - Decrease in refundable deposits - 1,250 Acquisition of intangible assets (13,263) (12,794) Decrease in other financial assets 470,907 802,370 Decrease in other non-current assets 32,208 76,613 Net cash flows from (used in) investing activities 218,492 558,792 Cash flows from (used in) financing activities: Increase in current borrowings 4,526,097 2,198,774 Decrease in current borrowings (5,825,557) (1,686,230) Repayments of long-term borrowings - (562,925) Increase in guarantee deposits received - 1 Decrease in guarantee deposits received (47) - Payment of lease liabilities (14,380) (18,607) Cash dividends paid (4,664,241) (3,703,956) Other financing activities - 256 Net cash flows from (used in) financing activities (5,978,128) (3,772,687) Effect of exchange rate changes on cash and cash equivalents (121,882) (5,006) Net increase (decrease) in cash and cash equivalents (130,073) 764,364 Cash and cash equivalents at beginning of period 3,618,179 2,813,733 Cash and cash equivalents at end of period $ 3,488,106 3,578,097 See accompanying notes to consolidated financial statements.
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8 (English Translation of Consolidated Financial Statements Originally Issued in Chinese) ECLAT TEXTILE CO., LTD. AND SUBSIDIARIES Notes to Consolidated Financial Statements For the nine months ended September 30, 2025 and 2024 (Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified) (1) Company history Eclat Textile Co., Ltd. (the “Company”) was incorporated on November 28, 1977. The Company has established the Hsi-Chou Plant and Da-Shan Plant in Miaoli, and Da-Yuan Plant in Taoyuan. The Company and its subsidiaries (the “ Group” ) have mainly been involved in the manufacturing and marketing of knitwear. Please refer to note 4(b) for more details about the operation of the Group. (2) Approval date and procedures of the consolidated financial statements The consolidated financial statements were approved by the Board of Directors and issued on November 6, 2025. (3) New standards, amendments and interpretations adopted (a) The impact of the IFRS Accounting Standards endorsed by the Financial Supervisory Commission (hereinafter referred to as FSC), R.O.C. which have already been adopted. The Group h as initially adopted the following new amendments, which do not have a significant impact on its consolidated financial statements, from January 1, 2025: ● Amendments to IAS 21 “Lack of Exchangeability” (b) The impact of IFRS Accounting Standards endorsed by the FSC but not yet effective The Group assesses that the adoption of the following new amendments, effective for annual period beginning on January 1, 2026, would not have a significant impact on its consolidated financial statements: ● IFRS 17 “Insurance Contracts” and amendments to IFRS 17 “ Insurance Contracts” ● Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” ● Annual Improvements to IFRS Accounting Standards ● Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity” (c) The impact of IFRS Accounting Standards issued by IASB but not yet endorsed by the FSC The following new and amended standards, which may be relevant to the Group, have been issued by the International Accounting Standards Board (IASB), but have yet to be endorsed by the FSC:
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9 ECLAT TEXTILE CO., LTD AND SUBSIDIARIES Notes to Consolidated Financial Statements Standards or Interpretations Content of amendment Effective date issued by IASB IFRS 18 “Presentation and Disclosure in Financial Statements” The new standard introduces three categories of income and expenses, two income statement subtotals and one single note on management performance measures. The three amendments, combined with enhanced guidance on how to disaggregate information, set the stage for better and more consistent information for users, and will affect all the entities. January 1, 2027 (Note) ● A more structured income statement: under current standards, companies use different formats to present their results, making it difficult for investors to compare financial performance across companies. The new standard promotes a more structured income statement, introducing a newly defined ‘operating profit’ subtotal and a requirement for all income and expenses to be allocated between three new distinct categories based on a company’s main business activities. ● Management performance measures (MPMs): the new standard introduces a definition for management performance measures, and requires companies to explain in a single note to the financial statements why the measure provides useful information, how it is calculated and reconcile it to an amount determined under IFRS Accounting Standards. ● Greater disaggregation of information: the new standard includes enhanced guidance on how companies group information in the financial statements. This includes guidance on whether information is included in the primary financial statements or is further disaggregated in the notes. Note: On September 25, 2025, the FSC issued a press release announcing that Taiwan will adopt IFRS 18 beginning in 2028. Entities that need to adopt the new standard earlier may do with the endorsement of the FSC.
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10 ECLAT TEXTILE CO., LTD AND SUBSIDIARIES Notes to Consolidated Financial Statements The Group is evaluating the impact on its consolidated financial position and consolidated financial performance upon the initial adoption of the abovementioned standards or interpretations. The results thereof will be disclosed when the Group completes its evaluation. The Group does not expect the following other new and amended standards, which have yet to be endorsed by the FSC, to have a significant impact on its consolidated financial statements: ● Amendments to IFRS 10 and IAS 28 “S ale or Contribution of Assets Between an Investor and Its Associate or Joint Venture” ● IFRS 19 “Subsidiaries without Public Accountability: Disclosures” and amendments to IFRS 19 “Subsidiaries without Public Accountability: Disclosures” (4) Summary of material accounting policies (a) Statement of compliance These consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (hereinafter referred to as “the Regulations”) and IAS 34 “Interim Financial Reporting” which are endorsed and issued into effect by the FSC. The consolidated financial statements do not include all of the information required by the Regulations and International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations and SIC Interpretations endorsed and issued into effect by the FSC (altogether referred to “I FRS Accounting Standards” e ndorsed by the FSC) for a complete set of the annual consolidated financial statements. Except the following accounting policies mentioned below, the material accounting policies adopted in the consolidated financial statements are the same as those in the consolidated financial statement for the year ended December 31, 2024. For the related information, please refer to note 4 of the consolidated financial statements for the year ended December 31, 2024. (b) Basis of consolidation (i) The subsidiaries in the consolidated financial statements Shareholding Ratio Investor Name of Subsidiary Primary Business September 30, 2025 December 31, 2024 September 30, 2024 Note The Company Grand Elite Holdings Inc. (Grand Elite) Investments in securities, real estate, and manufacturing industry %100.00 %100.00 %100.00 Note 2 The Company Eclat Cayman Islands Holdings (Eclat Cayman) Investments in securities, real estate, and manufacturing industry %100.00 %100.00 %100.00 - The Company PT Eclat Textile International (Eclat Textile (ID)) Design, manufacture, processing and sale of clothing %100.00 %100.00 %100.00 Note 1 Grand Elite Eclat Textile (Cambodia) Co., Ltd. (Eclat Textile (Cambodia)) Design, manufacture, processing and sale of clothing %100.00 %100.00 %100.00 Note 2 Eclat Cayman Eclat Textile Co., Ltd. (Vietnam) (Eclat Textile (VN)) Design, manufacture, processing and sale of clothing %100.00 %100.00 %100.00 - Eclat Cayman Eclat Fabrics (Vietnam) Co., Ltd. (Fabrics) Knit fabrics mill, printing, dyeing and finishing mill %100.00 %100.00 %100.00 -
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11 ECLAT TEXTILE CO., LTD AND SUBSIDIARIES Notes to Consolidated Financial Statements Shareholding Ratio Investor Name of Subsidiary Primary Business September 30, 2025 December 31, 2024 September 30, 2024 Note Eclat Cayman E-TOP (Vietnam) Co., Ltd. (E-TOP (VN)) Design, manufacture, processing and sale of clothing %100.00 %100.00 %100.00 - Eclat Cayman Colltex Garment Mfy Co., Ltd. (VN) (Colltex) Design, manufacture, processing and sale of clothing %100.00 %100.00 %100.00 Note 2 Eclat Cayman Eclat Enterprise Ltd. (Eclat Enterprise) Investments in securities, real estate, and manufacturing industry %100.00 %100.00 %100.00 Note 2 Eclat Cayman Tai-Yuan Garments Co., Ltd. (Tai-Yuan (VN)) Design, manufacture, processing and sale of clothing %100.00 %100.00 %100.00 Note 2 Eclat Cayman PT Eclat Textile International (Eclat Textile (ID)) Design, manufacture, processing and sale of clothing %- %- %- Note 1 Note1: Eclat Textile (ID) was mutually set up by the Company and Eclat Cayman. The shareholding ratio of the Company and Eclat Cayman are 99.9996% and 0.0004%, respectively. Note2: One of the non-significant subsidiaries whose financial reports for the nine months ended September 30, 2025 and 2024 were not reviewed. (ii) The subsidiaries are not included in the consolidated financial statements: None. (c) Employee benefits The 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 curtailments, settlements, or other significant onetime events. (d) Income taxes The Group evaluates and discloses interim period income tax expense in accordance with paragraph B12 of IAS 34 “Interim Financial Reporting”. Income tax expense is measured by multiplying together the pre-tax income for the interim reporting period and management’s best estimate of effective annual tax rate. All income tax expense should be recognized as current tax expense. Temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases shall be measured based on the tax rates that have been enacted or substantively enacted at the time of the asset or liability is recovered or settled, and be recognized directly in equity or other comprehensive income as tax expense. (5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty The preparation of the consolidated financial statements in conformity with the Regulations and IAS 34 “I nterim Financial Reporting” e ndorsed by the FSC requires management to make judgments, and estimates about the future, including climate-related risks and opportunities, that affect the application of the accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates. Preparing consolidated financial statements, judgments and key sources of estimation uncertainty used by management in the application of critical accounting policies are expected to be consistent with those in Note 5 of the consolidated financial statements for the year ended December 31, 2024.
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12 ECLAT TEXTILE CO., LTD AND SUBSIDIARIES Notes to Consolidated Financial Statements (6) Explanation to significant accounts Except as described below, the description of significant accounts in the accompanying consolidated financial statements is not materially different from those in the consolidated financial statements for the year ended December 31, 2024. Please refer to note 6 of the consolidated financial statem ents for the year ended December 31, 2024, for more details. (a) Cash and cash equivalents September 30, 2025 December 31, 2024 September 30, 2024 Cash $ 3,407 4,845 5,533 Bank deposits 2,144,034 3,586,769 3,545,978 Term deposits 1,340,665 26,565 26,586 Cash and cash equivalents $ 3,488,106 3,618,179 3,578,097 (b) Notes receivable and accounts receivable September 30, 2025 December 31, 2024 September 30, 2024 Notes receivable － operating activities $ 6,830 17,451 16,880 Accounts receivable 5,260,477 6,559,883 5,829,089 Less: allowance for doubtful accounts (24,086) (24,086) (24,086) Total $ 5,243,221 6,553,248 5,821,883 The Group applies the simplified approach to provide for its expected credit losses, which means applying a lifetime expected loss provision for all receivables. To measure the expected credit losses, notes and accounts receivable have been grouped based on shared credit risk characteristics and the days past due, as well as incorporated forward looking information, including the macroeconomic and related industrial information. The loss allowance provisions for the notes and accounts receivable of the Group were determined as follows: September 30, 2025 Gross carrying amount Weighted-average credit loss rate Expected credit loss Current $ 4,817,677 0%~2.3% 18,750 Within 30 days past due 444,903 0.4%~2.3% 2,034 31 to 120 days past due 3,289 0.4%~100% 1,864 Over 121 days past due 1,438 100% 1,438 $ 5,267,307 24,086
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13 ECLAT TEXTILE CO., LTD AND SUBSIDIARIES Notes to Consolidated Financial Statements December 31, 2024 Gross carrying amount Weighted-average credit loss rate Expected credit loss Current $ 5,706,668 0%~1.8% 17,356 Within 30 days past due 863,246 0.4%~1.8% 5,505 31 to 120 days past due 6,973 0.4%~100% 778 Over 121 days past due 447 100% 447 $ 6,577,334 24,086 September 30, 2024 Gross carrying amount Weighted-average credit loss rate Expected credit loss Current $ 5,115,382 0%~2.1% 18,076 Within 30 days past due 677,078 0.4%~6.0% 3,665 31 to 120 days past due 53,066 0.4%~100% 1,902 Over 121 days past due 443 100% 443 $ 5,845,969 24,086 None of notes receivable and accounts receivable held by the Group needed to increase provision for losses due to an increase in overdue credit risk for the nine months ended September 30, 2025 and 2024. None of notes receivable and accounts receivable held by the Group were pledged or collateralized as of September 30, 2025, December 31, and September 30, 2024. Accounts receivable of the Group h ad been insured accounts receivable credit risk. The insured amounts were $2,413,522 thousand, $2,971,477 thousand and $3,080,016 thousand as of September 30, 2025, December 31, a nd September 30, 2024, respectively. Guaranteed fraction was 90% of reviewed credit of policyholder, the recoverable amount of the insurance was considered when deciding impairment amount of accounts receivable. The Group h as signed accounts receivable factoring contracts without recourse with financial institutions. As stated in the contract, the Group d oes not have to bear the risks of uncollectable accounts receivables but the loss incurred due to commercial arguments, and hence meets the criteria of derecognition of financial assets. Factored accounts receivables which were not due as of the report date were as follows: September 30, 2025 Counterparty Amount Derecognized Acceptable advances Amountcollected in advance Interest rate Pledged items E.Sun Bank $ 141,347 5,475,756 141,347 4.73% None CTBC Bank $ - 3,815,520 - - None
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14 ECLAT TEXTILE CO., LTD AND SUBSIDIARIES Notes to Consolidated Financial Statements December 31, 2024 Counterparty Amount Derecognized Acceptable advances Amountcollected in advance Interest rate Pledged items E.Sun Bank $ - 4,957,092 - - None CTBC Bank $ - 4,042,391 - - None September 30, 2024 Counterparty Amount Derecognized Acceptable advances Amountcollected in advance Interest rate Pledged items E.Sun Bank $ - 3,500,807 - - None CTBC Bank $ - 3,332,745 - - None (c) Inventories September 30, 2025 December 31, 2024 September 30, 2024 Raw materials (including raw materials in transit) $ 3,012,758 3,049,206 3,104,806 Supplies 749,047 733,899 755,634 Work in progress 1,453,732 1,464,720 1,355,243 Finished goods 265,751 274,024 199,184 $ 5,481,288 5,521,849 5,414,867 For the three months and the nine months ended September 30, 2025 a nd 2024, the Group recognized inventory costs as part of cost of goods sold and expenses amounting to $6,872,309 thousand, $6,789,505 t housand, $20,640,448 t housand and $18,745,280 t housand, respectively. These amounts include inventory write-downs (gain from value recovery) resulting from changes in inventory prices. The details were as follows: For the three months ended September 30 For the nine months ended September 30 2025 2024 2025 2024 Loss on value depreciation (gain from value recovery) $ - - (3,219) 260 None of inventories held by the Group were pledged as of September 30, 2025, December 31, and September 30, 2024.
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15 ECLAT TEXTILE CO., LTD AND SUBSIDIARIES Notes to Consolidated Financial Statements (d) Property, plant and equipment The cost and depreciation of the property, plant and equipment of the Group were as follows: Land Buildings Machinery and equipment Transportation equipment Office equipment Miscellaneous equipment Construction in progress Total Cost: Balance at January 1, 2025 $ 4,950,105 9,247,598 6,156,167 113,737 370,108 1,781,077 11,338 22,630,130 Additions - 37,206 148,396 6,950 27,816 46,121 2,598 269,087 Disposals - (359) (9,636) (1,591) (1,219) (1,328) - (14,133) Reclassification - 7,117 - - - 43,697 (12,253) 38,561 Effect of exchange rate changes (58,368) (362,473) (297,257) (5,351) (11,764) (112,732) (569) (848,514) Balance at September 30, 2025 $ 4,891,737 8,929,089 5,997,670 113,745 384,941 1,756,835 1,114 22,075,131 Balance at January 1, 2024 $ 4,169,493 8,877,134 5,726,882 119,412 251,070 1,627,310 4,548 20,775,849 Additions - 66,218 148,234 12,841 110,745 53,708 9,004 400,750 Disposals - - (24,547) (21,210) (7,051) (5,837) - (58,645) Reclassification 760,679 (21,466) 6,034 - 248 1,019 (12,315) 734,199 Effect of exchange rate changes (8,378) 145,589 112,920 2,140 4,208 42,362 169 299,010 Balance at September 30, 2024 $ 4,921,794 9,067,475 5,969,523 113,183 359,220 1,718,562 1,406 22,151,163 Depreciation: Balance at January 1, 2025 $ - 2,760,999 5,057,204 91,098 233,771 1,493,448 - 9,636,520 Depreciation - 295,286 202,826 4,920 21,993 55,818 - 580,843 Disposals - (359) (9,636) (1,505) (1,219) (1,313) - (14,032) Reclassification - - - - - 36,944 - 36,944 Effect of exchange rate changes - (123,446) (235,671) (4,784) (8,581) (95,269) - (467,751) Balance at September 30, 2025 $ - 2,932,480 5,014,723 89,729 245,964 1,489,628 - 9,772,524 Balance at January 1, 2024 $ - 2,277,812 4,591,811 94,353 212,016 1,312,106 - 8,488,098 Depreciation - 301,329 220,076 6,044 16,319 89,111 - 632,879 Disposals - - (23,498) (13,608) (7,051) (5,707) - (49,864) Reclassification - (12,371) - - - - - (12,371) Effect of exchange rate changes - 40,730 86,775 1,889 3,265 33,938 - 166,597 Balance at September 30, 2024 $ - 2,607,500 4,875,164 88,678 224,549 1,429,448 - 9,225,339 Carrying amounts: Balance at September 30, 2025 $ 4,891,737 5,996,609 982,947 24,016 138,977 267,207 1,114 12,302,607 Balance at January 1, 2025 $ 4,950,105 6,486,599 1,098,963 22,639 136,337 287,629 11,338 12,993,610 Balance at September 30, 2024 $ 4,921,794 6,459,975 1,094,359 24,505 134,671 289,114 1,406 12,925,824 The property, plant and equipment of the Group were not pledged or mortgaged as collateral for loans as of September 30, 2025, December 31, and September 30, 2024. When the properties held by the Group are leased out to third parties under operating leases, such properties are reclassified as investment properties at their carrying amounts at the date of change in use, please refer to note 6(e) for further details.
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16 ECLAT TEXTILE CO., LTD AND SUBSIDIARIES Notes to Consolidated Financial Statements (e) Investment property Investment property comprises office buildings that are leased to third parties under operating leases which owned by the Group. The details of the changes were as follows: Land Buildings Total Cost: Balance at January 1, 2025 (Same as ending balance) $ 636,494 237,521 874,015 Balance at January 1, 2024 $ 627,050 211,042 838,092 Reclassification from property, plant and equipment 9,444 26,479 35,923 Balance at September 30, 2024 $ 636,494 237,521 874,015 Depreciation: Balance at January 1, 2025 $ - 121,321 121,321 Depreciation - 7,112 7,112 Balance at September 30, 2025 $ - 128,433 128,433 Balance at January 1, 2024 $ - 100,312 100,312 Depreciation - 6,268 6,268 Reclassification from property, plant and equipment - 12,371 12,371 Balance at September 30, 2024 $ - 118,951 118,951 Carrying amounts: Balance at September 30, 2025 $ 636,494 109,088 745,582 Balance at January 1, 2025 $ 636,494 116,200 752,694 Balance at September 30, 2024 $ 636,494 118,570 755,064 The fair value of investment property was not significantly different from those disclosed in note 6(g) of the consolidated financial statements for the year ended December 31, 2024. None of the investment property of the Group were pledged or mortgaged as collateral for loans as of September 30, 2025, December 31, and September 30, 2024. (f) Other current or non-current assets Current: September 30, 2025 December 31, 2024 September 30, 2024 Tax refund receivables $ 253,423 53,895 251,530 Payment in advance 115,951 42,715 51,712 Prepaid expense 58,316 27,706 30,897 Prepaid value-added tax 93,099 291,902 70,423 Other financial assets － term deposits 4,870,399 5,341,306 3,339,889 Refundable deposits 2,005 4,071 3,830 Other financial assets － restricted demand deposits 69,601 - 726,640 Others 19,689 21,772 22,886 $ 5,482,483 5,783,367 4,497,807
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17 ECLAT TEXTILE CO., LTD AND SUBSIDIARIES Notes to Consolidated Financial Statements The Group's assets were pledged as collaterals to secure natural gas, solar energy and electricity as of September 30, 2025, December 31, and September 30, 2024, please refer to note 8. Non-current: September 30, 2025 December 31, 2024 September 30, 2024 Prepayments for business facilities $ 28,890 31,548 39,834 Long-term prepaid expense 273,356 302,906 295,191 Refundable deposits 7,365 5,087 4,791 $ 309,611 339,541 339,816 (g) Current borrowings Details of current borrowings of the Group were as follows: September 30, 2025 December 31, 2024 September 30, 2024 Unsecured bank loans $ 408,420 1,804,322 1,149,370 Unused quota $ 6,544,921 4,349,688 5,232,464 Range of interest rates 4.29%~5.21% 4.89%~6.29% 5.19%~6.29% The changes in current borrowings of the Group were as follows: For the nine months ended September 30 2025 2024 Beginning balance $ 1,804,322 623,772 Increase in current borrowings 4,526,097 2,198,774 Repayment of current borrowings (5,825,557) (1,686,230) Effect of exchange rate changes (96,442) 13,054 Ending balance $ 408,420 1,149,370 Range of interest rates 4.20%~5.21% 5.19%~6.29% None of the Group's assets were pledged as collaterals to secure current borrowings as of September 30, 2025, December 31, and September 30, 2024. (h) Employee benefits (i) Defined benefit plans Subsequent to December 31, 2024 a nd 2023 t here were no apparent evidence of any material market volatility, material curtailment, reimbursement and settlement, or other material onetime events. Therefore, pension costs in the interim consolidated financial statements is measured and disclosed according to the respective actuarial report for the years ended December 31, 2024 and 2023.
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18 ECLAT TEXTILE CO., LTD AND SUBSIDIARIES Notes to Consolidated Financial Statements The expenses (benefit) recognized for the Group were as follows: For the three months ended September 30 For the nine months ended September 30 2025 2024 2025 2024 Operating costs $ (255) (105) (701) (304) Selling expense (236) (128) (733) (403) Administrative expense (269) (148) (847) (438) $ (760) (381) (2,281) (1,145) The Group's employee benefit liabilities were as follows: September 30, 2025 December 31, 2024 September 30, 2024 Compensated absences liability $ 81,407 68,285 80,409 (ii) Defined contribution plans The pension costs that were contributed to Bureau of Labor Insurance or local relevant authorities were as follows: For the three months ended September 30 For the nine months ended September 30 2025 2024 2025 2024 Operating costs $ 7,395 6,682 22,289 18,798 Selling expense 6,617 5,959 18,836 17,686 Administrative expense 5,118 4,503 14,933 13,037 R&D expense 631 580 1,840 1,701 $ 19,761 17,724 57,898 51,222 (i) Income taxes (i) The details of the Group's income tax expense were as follows: For the three months ended September 30 For the nine months ended September 30 2025 2024 2025 2024 Current tax expense Current period $ 429,131 439,877 1,065,169 1,288,435 Adjustment for prior periods 7,285 3 7,289 (711) 436,416 439,880 1,072,458 1,287,724 Deferred tax expense The occurrence and reversal of temporary differences - - - - Income tax expense $ 436,416 439,880 1,072,458 1,287,724
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19 ECLAT TEXTILE CO., LTD AND SUBSIDIARIES Notes to Consolidated Financial Statements (ii) The Company's income tax returns through 2023 have been examined by the R.O.C. tax authority. (iii) Global minimum top-up tax The Group has applied a temporary mandatory relief from deferred tax accounting for the impacts of the top-up tax and accounts for it as a current tax when it is incurred. (j) Capital and other equity Except for the following disclosure, there were no significant change for capital and other equity for the nine months ended September 30, 2025 and 2024. For the related information, please refer to note 6 (o) of the consolidated financial statements for the year ended December 31, 2024. (i) Retained earnings According to the Company’s articles of incorporation, 10% of annual net earnings (net of incom e taxes), after deducting accumulated deficits, must be set aside as legal reserve. The remaining portion is to be distributed upon a proposal by the Board of Directors. In accordance with the Article 240, paragraph 5 of the Company Act and the Company’s articles 37-1, the Company authorizes the Board of Directors, with the presence of more than two-thirds of the directors and the approval of a majority of the directors, to distribute all or part of the dividends and bonuses payable by way of cash, and to report to the shareholders’ meeting. For the issuance of new shares, the proposal should be resolved during the shareholders’ meeting. The Company is now in the growth stage and has a plan to expand the product line. Due to the need for capital to fulfill the plan, the policy for dividend distribution should reflect factors such as investment planning, financial structure, future fund requirements, and status of earnings. In a normal consideration, the percentage of earnings distribution shall not be less than 50% of the net earnings of the current year after compensating for accumulated deficits, if any. The ratio for distributing cash dividends shall not be lower than 20% of the total distribution. Earnings distributions for 2024 a nd 2023 were resolved by the Board of Directors held on February 27, 2025 and February 29, 2024, respectively. The relevant dividend distributions to shareholders were as follows: For the years ended December 31 2024 2023 Per share (in dollars) Amount Per share (in dollars) Amount Dividends distributed to ordinary shareholders: Cash dividends $ 17.00 4,664,241 13.50 3,703,956 Relevant information can be obtained through the Market Observation Post System or other public information channels.
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20 ECLAT TEXTILE CO., LTD AND SUBSIDIARIES Notes to Consolidated Financial Statements (ii) Other equity (net of income tax) Financial statements translation differences from foreign operations Balance at January 1, 2025 $ 327,270 Exchange differences on translation of foreign financial statements (429,138) Balance at September 30, 2025 $ (101,868) Balance at January 1, 2024 $ 39,529 Exchange differences on translation of foreign financial statements 157,966 Balance at September 30, 2024 $ 197,495 (k) Earnings per share The basic and diluted earnings per share were calculated as follows: For the three months ended September 30 For the nine months ended September 30 2025 2024 2025 2024 Basic earnings per share Profit attributable to ordinary shareholders of the Company $ 1,652,383 1,775,203 3,932,957 4,934,019 Weighted average number of ordinary shares outstanding (in thousands) 274,367 274,367 274,367 274,367 Basic earnings per share (in dollars) $ 6.02 6.47 14.33 17.98 Diluted earnings per share Profit attributable to ordinary shareholders of the Company $ 1,652,383 1,775,203 3,932,957 4,934,019 Weighted average number of ordinary shares outstanding (basic)(in thousands) 274,367 274,367 274,367 274,367 Effect on employee's profit- sharing bonus (in thousands) 113 3 116 3 Weighted average number of ordinary shares outstanding (diluted) (in thousands) 274,480 274,370 274,483 274,370 Diluted earnings per share (in dollars) $ 6.02 6.47 14.33 17.98
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21 ECLAT TEXTILE CO., LTD AND SUBSIDIARIES Notes to Consolidated Financial Statements (l) Revenue from contracts with customers For the three months ended September 30, 2025 For the three months ended September 30, 2024 Knitted fabrics Garments Knitted fabrics Garments Main market： Americas $ 230,726 4,559,028 170,161 5,104,297 Asia 3,058,785 561,802 3,022,601 484,552 Europe 1,891 883,169 9,119 779,220 the Middle East 222,538 19,514 291,421 30,603 ANZ 1,603 79,999 480 76,028 Africa 1,153 13,218 54,632 8,596 $ 3,516,696 6,116,730 3,548,414 6,483,296 For the three months ended September 30, 2025 For the three months ended September 30, 2024 Main product： Knitted fabrics $ 3,516,696 3,548,414 Garments 6,116,730 6,483,296 $ 9,633,426 10,031,710 For the nine months ended September 30, 2025 For the nine months ended September 30, 2024 Knitted fabrics Garments Knitted fabrics Garments Main market: Americas $ 671,958 13,833,447 588,751 12,744,905 Asia 8,484,713 1,770,912 8,509,190 1,516,277 Europe 9,740 2,905,643 27,104 2,482,196 the Middle East 636,082 80,253 829,379 74,112 ANZ 4,675 241,323 994 201,624 Africa 46,921 39,958 252,802 30,291 $ 9,854,089 18,871,536 10,208,220 17,049,405 For the nine months ended September 30, 2025 For the nine months ended September 30, 2024 Main product: Knitted fabrics $ 9,854,089 10,208,220 Garments 18,871,536 17,049,405 $ 28,725,625 27,257,625
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22 ECLAT TEXTILE CO., LTD AND SUBSIDIARIES Notes to Consolidated Financial Statements (m) Employee's profit-sharing bonus The Company resolved to amend its Articles of Incorporation at the shareholders’ meeting on June 13, 2025. According to the amended Articles, where the Company has a profit in the current year, if there is surplus after covering the accumulated loss, no less than 1% shall be appropriated for the employee’s compensation for the distribution according to the resolution adopted by a majority vote at a meeting of the Board of Directors attended by two- thirds of the total number of directors, and be reported to the shareholders’ meeting. The distribution of employee compensation may be made in the form of shares or cash. Of the em ployee compensation, no less than 50% shall be allocated to the distribution of compensation for the employees. Before the amendment, the Articles of Incorporation stipulated that, where the Company has a profit in the current year, if there is surplus after covering the accumulated loss, no less than 0.1% shall be appropriated for the employee’s compensation for the distribution according to the resolution of the Board of Directors, and be reported to the shareholders’ meeting. The distribution of employee’s compensation may be made in the form of shares or cash. For the three months and the nine months ended September 30, 2025, t he estimated employee’ s profit-sharing bonuses amounted to $19,584 t housand and $49,584 t housand, respectively. Which were calculated based on the Company’s profit excluding tax as well as employee’s profit-sharing bonuses, and were reported under cost of goods sold and operating expenses in the current period. If there are any subsequent adjustments to the actual remuneration amounts, the adjustments will be regarded as changes in accounting estimates and will be reflected in profit or loss in the following year. For the three months and the nine months ended September 30, 2024, the employee’s profit-sharing bonuses were calculated based on the Company’s profit excluding tax as well as employee’s profit- sharing bonuses, and an earnings allocation of a minimum of 0.1% as stated under the Company's Articles of Incorporation. We did not estimate the liabilities due to the minor estimated expense in the current period. If there are any subsequent adjustments to the actual remuneration amounts, the adjustments will be regarded as changes in accounting estimates and will be reflected in profit or loss in the following year. The estimated employee’s profit-sharing bonuses amounted to $9,000 thousand and $7,000 thousand for 2024 and 2023, respectively. There were no differences between the estimated and the distributed employee’ s profit-sharing bonuses, and the related information can be obtained from the Market Observation Post System website of the Taiwan Stock Exchange.
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23 ECLAT TEXTILE CO., LTD AND SUBSIDIARIES Notes to Consolidated Financial Statements (n) Non-operating income and expenses (i) Interest income The Group's interest income were as follows: For the three months ended September 30 For the nine months ended September 30 2025 2024 2025 2024 Interest income from bank deposits $ 32,134 15,433 119,845 72,197 (ii) Other income The Group's other income were as follows: For the three months ended September 30 For the nine months ended September 30 2025 2024 2025 2024 Rental income $ 8,042 7,979 24,184 23,306 (iii) Other gains and losses, net The Group's other gains and losses were as follows: For the three months ended September 30 For the nine months ended September 30 2025 2024 2025 2024 Gain (loss) on disposal of property, plant and equipment $ (36) 1,008 (96) 1,508 Gain on disposal of non-current assets held-for-sale - - - 56,697 Foreign exchange gain (loss) 212,222 (105,273) (406,761) 223,655 Others 7,535 5,011 9,224 17,243 $ 219,721 (99,254) (397,633) 299,103 (iv) Finance costs The Group’s finance costs were as follows: For the three months ended September 30 For the nine months ended September 30 2025 2024 2025 2024 Bank borrowings interest $ 5,731 17,968 50,184 56,994 Lease liabilities interest 381 438 1,243 1,319 Factoring of accounts receivable 5,348 - 6,230 - $ 11,460 18,406 57,657 58,313
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24 ECLAT TEXTILE CO., LTD AND SUBSIDIARIES Notes to Consolidated Financial Statements (o) Financial instruments There were no material changes of financial instruments for the nine months ended September 30, 2025 and 2024, except for followings. Please refer to note 6 (t) of the consolidated financial report of 2024 for further information. (i) Liquidity risks The following were the contractual maturities of financial liabilities, including the impact of estimated interest. Carrying amount Contractual cash flows Less than 12 months 1 to 2 years 2 to 5 years More than 5 years September 30, 2025 Non-derivative financial liabilities Short-term borrowings $ 408,420 427,820 427,820 - - - Accounts and notes payable 2,282,731 2,282,731 2,282,731 - - - Lease liabilities 69,732 81,478 15,077 12,970 4,709 48,722 $ 2,760,883 2,792,029 2,725,628 12,970 4,709 48,722 December 31, 2024 Non-derivative financial liabilities short-term borrowings $ 1,804,322 1,905,184 1,905,184 - - - Accounts and notes payable 2,263,147 2,263,147 2,263,147 - - - Lease liabilities 70,986 89,990 14,955 11,085 11,356 52,594 $ 4,138,455 4,258,321 4,183,286 11,085 11,356 52,594 September 30, 2024 Non-derivative financial liabilities Short-term borrowings $ 1,149,370 1,215,344 1,215,344 - - - Accounts and notes payable 2,450,131 2,450,131 2,450,131 - - - Lease liabilities 71,514 89,665 14,447 10,028 8,963 56,227 $ 3,671,015 3,755,140 3,679,922 10,028 8,963 56,227 The Group doesn't expect that the cash flows included in the maturity analysis could occur significantly earlier or at significantly different amounts.
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25 ECLAT TEXTILE CO., LTD AND SUBSIDIARIES Notes to Consolidated Financial Statements (ii) Market risks 1) Foreign currency risk The Group’s significant exposure to foreign currency risk was as follows: September 30, 2025 December 31, 2024 September 30, 2024 Foreign currency (thousands) Exchange rate NTD Foreign currency (thousands) Exchange rate NTD Foreign currency (thousands) Exchange rate NTD Financial assets Monetary items USD $ 249,889 30.445 7,607,871 265,618 32.785 8,708,286 253,765 31.650 8,031,671 VND 378,531,608 0.0012 439,259 549,105,812 0.0013 712,375 346,970,338 0.0013 448,962 IDR 7,217,295 0.0018 13,173 4,962,604 0.0020 10,067 7,622,214 0.0021 15,936 Financial liabilities Monetary items USD $ 59,728 30.445 1,818,419 110,299 32.785 3,616,153 88,085 31.650 2,787,877 VND 526,186,403 0.0012 610,602 293,639,247 0.0013 380,949 491,388,426 0.0013 635,832 IDR 55,270,439 0.0018 100,882 80,139,854 0.0020 162,566 80,730,133 0.0021 168,788 2) Sensitivity analysis The Group's exposure to foreign currency risk arises from the translation of the foreign currency exchange gains and losses on cash and cash equivalents, accounts receivable, other receivables, other current assets, current borrowings, accounts payable and other payables, etc. A 1% depreciation or appreciation of the NTD against the USD, VND and IDR as of September 30, 2025 and 2024 would have increased or decreased the net income after tax by $44,243 thousand and $39,233 t housand, respectively. The analysis assumes that all other variables remain constant. The analysis was based on the same basis. 3) Foreign currency gain or loss on monetary items Since the Group has many kinds of functional currency, the information on foreign exchange gain (loss) on monetary items is disclosed by total amount. For the nine months ended September 30, 2025 and 2024, t he foreign exchange gain (loss) (including realized and unrealized portions), were as follows: For the nine months ended September 30 2025 2024 Exchange (loss) gain Average rate Exchange (loss) gain Average rate USD $ (406,761) 31.222 223,655 32.034 (iii) Interest rate risk For floating rate liabilities, the analysis assumes that the balances of outstanding liabilities on the reporting date have been outstanding for the whole period, and their rational change
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26 ECLAT TEXTILE CO., LTD AND SUBSIDIARIES Notes to Consolidated Financial Statements intervals are being estimated. If the interest rate increases/decreases by 1%, representing the reasonable interest rates changes made by management. If the interest rate increases/decreases by 1%, the Group's net income will decrease/increase by $4,084 t housand and $11,494 t housand for the nine months ended September 30, 2025 and 2024, respectively, with all other variable factors that remain constant. This was mainly due to the Group's borrowings in variable rates. (iv) Fair value The Group’ s management considers its financial assets and financial liabilities measured at amortized cost to be the approximation of the fair value. (p) Financial risk management The objectives and the policies of the financial risk management are consistent with those disclosed in note 6(u) of the consolidated financial statements for the year ended December 31, 2024. (q) Capital management The objectives, policies, and procedures of the Group’s capital management are the same as those stated in the consolidated financial statements for the year ended December 31, 2024. There was no material change on quantitative data of the capital management. For relevant information, please refer to note 6(v) of the consolidated statements for the year ended December 31, 2024. (7) Related party transactions (a) Names and relationship of related parties The Group had transactions with related parties during the periods covered in the consolidated financial statements, as follows: Name of related parties Relationship with the Group Yih-Yuan Investment Corp. The entity's chairman was related to the former chairman of the Company within the second degree of kinship, after the board re-election on June 12, 2024, they are no longer considered related parties. Eclat Education Foundation (Eclat Foundation) Founded by donation of the Company. (b) Material transactions among related parties The Group’s purchases and processes from related party were as follows: (i) Leases Types of related parties For the three months ended September 30 For the nine months ended September 30 2025 2024 2025 2024 Other related parties $ - - - 150 The Group charged their rentals based on the local market prices which were paid monthly.
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27 ECLAT TEXTILE CO., LTD AND SUBSIDIARIES Notes to Consolidated Financial Statements (ii) Others Donations Name of related parties For the three months ended September 30 For the nine months ended September 30 2025 2024 2025 2024 Eclat Foundation $ 2,000 - 2,000 2,000 (c) Key management personnel transactions Key management personnel compensation comprised: For the three months ended September 30 For the nine months ended September 30 2025 2024 2025 2024 Short-term employee benefits $ 4,717 13,805 136,391 174,337 Cars provided to key management personnel were as follows: September 30, 2025 December 31, 2024 September 30, 2024 Cost $ 20,227 20,227 20,227 Quantities 7 7 7 Book value $ 9,183 10,958 11,580 (8) Pledged assets The Group’s pledged assets were as follows: Pledged assets Pledged to secure September 30, 2025 December 31, 2024 September 30, 2024 Other financial assets - current Natural gas, solar energy and electricity security deposit $ 905 1,197 1,159 (9) Commitments and contingencies (a) The balances of unused letters of credit of the Group were as follows: September 30, 2025 December 31, 2024 September 30, 2024 Unused letters of credit $ 4,089 10,450 48,666 (b) Unrecognized commitments of the Group were as follows: September 30, 2025 December 31, 2024 September 30, 2024 Acquisition of property, plant and equipment $ 40,040 23,902 122,903
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28 ECLAT TEXTILE CO., LTD AND SUBSIDIARIES Notes to Consolidated Financial Statements (c) The balances of issued promissory notes of the Group were as follows: September 30, 2025 December 31, 2024 September 30, 2024 Issued promissory notes $ 20,000 20,000 20,000 (10) Losses due to major disasters: None. (11) Subsequent events: None. (12) Other (a) The Group’ s employee benefits, depreciation and amortization expenses, categorized by function, were as follows: By function For the three months ended September 30, 2025 For the three months ended September 30, 2024 By nature Operating costs Operating expenses Non- Operating expenses Total Operating costs Operating expenses Non- Operating expenses Total Employee benefits Salary 794,240 421,226 - 1,215,466 888,580 494,440 - 1,383,020 Labor and health insurance 77,107 33,987 - 111,094 86,681 31,312 - 117,993 Pension 7,140 11,861 - 19,001 6,577 10,766 - 17,343 Director's remuneration - 3,011 - 3,011 - 2,404 - 2,404 Others 47,062 23,288 - 70,350 49,004 22,742 - 71,746 Depreciation 127,431 64,746 331 192,508 159,703 65,651 331 225,685 Amortization 2,477 5,878 - 8,355 2,605 4,012 - 6,617 By function For the nine months ended September 30, 2025 For the nine months ended September 30, 2024 By nature Operating costs Operating expenses Non- Operating expenses Total Operating costs Operating expenses Non- Operating expenses Total Employee benefits Salary 2,561,460 1,318,305 - 3,879,765 2,309,832 1,348,985 - 3,658,817 Labor and health insurance 238,176 108,632 - 346,808 226,330 101,556 - 327,886 Pension 21,588 34,029 - 55,617 18,494 31,583 - 50,077 Director's remuneration - 9,552 - 9,552 - 7,448 - 7,448 Others 143,998 67,011 - 211,009 125,268 61,712 - 186,980 Depreciation 407,452 193,298 993 601,743 458,021 194,369 993 653,383 Amortization 7,974 15,662 - 23,636 7,611 11,659 - 19,270 (b) Seasonality of operations The operation of the Group was not materially influenced by seasonality or cyclicality factors.
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29 ECLAT TEXTILE CO., LTD AND SUBSIDIARIES Notes to Consolidated Financial Statements (13) Other disclosures (a) Information on significant transactions The followings were the disclosures on significant transactions required under the “R egulations Governing the Preparation of Financial Reports by Securities Issuers” f or the Group for the nine months ended September 30, 2025: (i) Lending to other parties: No. Name of lender Name of borrower Account name Related party Highest balance of financing to other parties during the period Ending balance Actual usage amount during the period Range of interest rates during the period Purposes of fund financing for the borrower Transaction amount for business between two parties Reasons for short-term financing Allowance for bad debt Collateral Individual funding loan limits Maximum limit of fund financing (Note 2) (Note 4) (Note 3) Item Value (Note 1) (Note 1) 0 The Company Fabrics Other receivables Yes 664,100 608,900 - - 2 - Operating capital - - - 2,776,123 5,552,247 0 The Company Eclat Textile (ID) Other receivables Yes 1,859,480 1,704,920 - - 2 - Operating capital - - - 2,776,123 5,552,247 Note 1: The total amount available for financing purposes shall not exceed 40% of the Company’s net worth. For entities that the Company has business with, the total amount available for financing shall not exceed 20% of the Company’s net worth; and for each entity that the Company has business with, the amount available for financing shall not exceed the transaction amount within 12 months and 10% of the Company’s net worth. The total amount for short-term financing shall not exceed 20% of the Company’s net worth; and for each entity the amount available for short-term financing shall not exceed 10% of the Company’s net worth. Note 2: Approved by Board of Directors Note 3: Nature of financing: 1. Business transaction purpose. 2. Short-term financing purpose. Note 4: Transaction listed above has been eliminated during preparing consolidated financial statements. (ii) Guarantees and endorsements for other parties: None. (iii) Information regarding securities held at the reporting date (subsidiaries, associates and joint ventures not included): None. (iv) Information regarding related-party purchases and / or sales exceeding NT$100 million or 20% of the Company’s paid-in capital: Transaction details Transactions with terms different from others Notes/Accounts receivable (payable) Name of company Related party Nature of relationship Purchases/ (sales) Amount Percentage of total purchases/ sales Payment terms (days) Unit price Payment terms Ending balance Percentage of total notes/ accounts receivable (payable) Note The Company Eclat Textile (VN) Indirectly held subsidiaries processing 1,309,456 %16.72 30 (Note 3) (Note 3) Accounts payable (100,523) %(3.90) (Note 1) (Note 2) Eclat Textile (VN) The Company Parent company (sales) (1,309,456) %(100.00) 30 (Note 3) (Note 3) Accounts receivable 100,523 %100.00 (Note 2) The Company Fabrics Indirectly held subsidiaries purchasing 1,912,934 %15.36 30 (Note 3) (Note 3) Accounts payable (151,248) %(5.87) (Note 2) Fabrics The Company Parent company (sales) (1,912,934) %(89.51) 30 (Note 3) (Note 3) Accounts receivable 151,248 %98.00 (Note 2) The Company E-TOP (VN) Indirectly held subsidiaries processing 700,482 %8.94 30 (Note 3) (Note 3) Accounts payable (56,392) %(2.19) (Note 1) (Note 2) E-TOP (VN) The Company Parent company (sales) (700,482) %(99.06) 30 (Note 3) (Note 3) Accounts receivable 56,392 %97.65 (Note 2) The Company Colltex Indirectly held subsidiaries processing 663,892 %8.48 30 (Note 3) (Note 3) Accounts payable (53,846) %(2.09) (Note 1) (Note 2) Colltex The Company Parent company (sales) (663,892) %(100.00) 30 (Note 3) (Note 3) Accounts receivable 53,846 %99.85 (Note 2) The Company Eclat Textile (Cambodia) Indirectly held subsidiaries processing 339,904 %4.34 30 (Note 3) (Note 3) Accounts payable (37,965) %(1.47) (Note 1) (Note 2)
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30 ECLAT TEXTILE CO., LTD AND SUBSIDIARIES Notes to Consolidated Financial Statements Transaction details Transactions with terms different from others Notes/Accounts receivable (payable) Name of company Related party Nature of relationship Purchases/ (sales) Amount Percentage of total purchases/ sales Payment terms (days) Unit price Payment terms Ending balance Percentage of total notes/ accounts receivable (payable) Note Eclat Textile (Cambodia) The Company Parent company (sales) (339,904) %(100.00) 30 (Note 3) (Note 3) Accounts receivable 37,965 %100.00 (Note 2) The Company Tai-Yuan (VN) Indirectly held subsidiaries processing 163,623 %2.09 30 (Note 3) (Note 3) Accounts payable (6,366) %(0.25) (Note 1) (Note 2) Tai-Yuan (VN) The Company Parent company (sales) (163,623) %(86.94) 30 (Note 3) (Note 3) Accounts receivable 6,366 %91.14 (Note 2) The Company Eclat Textile (ID) Subsidiaries processing 942,049 %12.03 30 (Note 3) (Note 3) Accounts payable (64,189) %(2.49) (Note 1) (Note 2) Eclat Textile (ID) The Company Parent company (sales) (942,049) %(100.00) 30 (Note 3) (Note 3) Accounts receivable 64,189 %100.00 (Note 2) Note 1: Percentage on processing expense Note 2: Transaction listed above has been eliminated during preparing consolidated financial statements. Note 3: The same as general processing/purchasing/sales (v) Information regarding receivables from related parties exceeding NT$100 million or 20% of the Company’s paid-in capital: (In thousands of NTD/USD) Name of Name of Nature of Ending Overdue Amounts received in Allowance Company counterparty relationship balance Turnover Amount Action taken subsequent period for bad debts Note Fabrics The Company Indirectly held subsidiaries 151,248 (USD4,968 ) 23.44 - - 151,248 (USD4,968 ) - (Note1) (Note2) Eclat Textile (VN) The Company Indirectly held subsidiaries 100,523 (USD3,302 ) 19.19 - - 100,523 (USD3,302 ) - (Note1) (Note2) Note 1: Transaction listed above has been eliminated during preparing consolidated financial statements. Note 2: The rate as of September 30, 2025 was USD 1 to NTD 30.445. (vi) Significant transactions and business relationship between the parent company and its subsidiaries: Intercompany transactions No. (Note 1) Company name Counter-party Nature of relationship (Note 2) Financial statements item (Note 3)(Note 4) Amount Terms Percentage of the consolidated net revenue or total assets 1 Fabrics The Company 2 Sales 1,912,934 The same as general sales %6.66 1 Fabrics The Company 2 Accounts receivable 151,248 The same as general sales %0.45 2 Eclat Textile (VN) The Company 2 Processing revenue 1,309,456 The same as general processing %4.56 2 Eclat Textile (VN) The Company 2 Accounts receivable 100,523 The same as general processing %0.30 3 Colltex The Company 2 Processing revenue 663,892 The same as general processing %2.31 4 E -TOP (VN) The Company 2 Processing revenue 700,482 The same as general processing %2.44 5 Eclat Textile (Cambodia) The Company 2 Processing revenue 339,904 The same as general processing %1.18
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31 ECLAT TEXTILE CO., LTD AND SUBSIDIARIES Notes to Consolidated Financial Statements Intercompany transactions No. (Note 1) Company name Counter-party Nature of relationship (Note 2) Financial statements item (Note 3)(Note 4) Amount Terms Percentage of the consolidated net revenue or total assets 6 Tai-Yuan (VN) The Company 2 Processing revenue 163,623 The same as general processing %0.57 7 Eclat Textile (ID) The Company 2 Processing revenue 942,049 The same as general processing %3.28 Note 1: Numbers are filled in as follows: 1. 0 represents the parent company. 2. Subsidiaries are numbered from 1. Note 2: Classification of relation with counterparty is listed as follows: 1. Parent to subsidiary. 2. Subsidiary to parent. 3. Between subsidiaries. Note 3: Only disclosed the amount of important transactions over NT$100 million, no need to disclosed corresponding transactions. Note 4: Transaction listed above has been eliminated during preparing consolidated financial statements. (b) Information on investees: The following were the information on investment for the nine months ended September 30, 2025 (excluding these in Mainland China): (In thousands of NTD/USD) Original investment amount Balance as of September 30, 2025 Investor company Investee company Location Main businesses and products September 30, 2025 December 31, 2024 Shares (thousands) Percentage of ownership Carrying value (Note 4) Net income (losses) of the investee Share of profits/losses of investee Note The Company Grand Elite British Virgin Islands Investments in securities, real estate, and manufacturing industry 259,391 (USD 8,520) 259,391 (USD 8,520) 21 %100.00 141,551 (34,124) (34,124) Subsidiaries (Note 1)(Note 2) The Company Eclat Cayman Cayman Islands Investments in securities, real estate, and manufacturing industry 3,817,986 (USD 125,406) 3,817,986 (USD 125,406) 121,080 %100.00 4,283,944 99,461 99,461 Subsidiaries (Note 1)(Note 2) The Company Eclat Textile (ID) Indonesia Design, manufacture, processing and sale of clothing 3,653,400 (USD 120,000) 1,522,250 (USD 50,000) 12,000 %100.00 3,334,341 116,249 116,249 Subsidiaries (Note 1)(Note 2) (Note 3) Grand Elite Eclat Textile (Cambodia) Cambodia Design, manufacture, processing and sale of clothing 243,560 (USD 8,000) 243,560 (USD 8,000) 8,000 %100.00 123,765 (34,351) (34,351) Subsidiaries of Grand Elite (Note 1)(Note 2) Eclat CaymanColltex Vietnam Design, manufacture, processing and sale of clothing 485,750 (USD 15,955) 485,750 (USD 15,955) 16,800 %100.00 557,286 662 (422) Subsidiaries of Eclat Cayman (Note 1)(Note 2) Eclat CaymanE-TOP (VN) Vietnam Design, manufacture, processing and sale of clothing 1,096,020 (USD 36,000) 1,096,020 (USD 36,000) 36,000 %100.00 1,196,938 (15,834) (15,834) Subsidiaries of Eclat Cayman (Note 1)(Note 2) Eclat CaymanEclat Enterprise Cambodia Investments in securities, real estate, and manufacturing industry 30 (USD 1) 30 (USD 1) 1 %100.00 (1,596) 142 142 Subsidiaries of Eclat Cayman (Note 1)(Note 2)
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32 ECLAT TEXTILE CO., LTD AND SUBSIDIARIES Notes to Consolidated Financial Statements Original investment amount Balance as of September 30, 2025 Investor company Investee company Location Main businesses and products September 30, 2025 December 31, 2024 Shares (thousands) Percentage of ownership Carrying value (Note 4) Net income (losses) of the investee Share of profits/losses of investee Note Eclat CaymanEclat Textile (VN) Vietnam Design, manufacture, processing and sale of clothing 644,551 (USD 21,171) 644,551 (USD 21,171) 22,000 %100.00 748,456 42,253 42,253 Subsidiaries of Eclat Cayman (Note 1)(Note 2) Eclat CaymanFabrics Vietnam Knit fabric mills, printing, dyeing and finishing mill 1,217,800 (USD 40,000) 1,217,800 (USD 40,000) 40,000 %100.00 1,783,074 71,189 63,610 Subsidiaries of Eclat Cayman (Note 1)(Note 2) Eclat CaymanTai - Yuan (VN) Vietnam Design, manufacture, processing and sale of clothing 210,527 (USD 6,915) 210,527 (USD 6,915) 6,800 %100.00 2,267 9,772 9,555 Subsidiaries of Eclat Cayman (Note 1)(Note 2) Eclat CaymanE&I Printing Vietnam Design, printing, dyeing and finishing mill 30,445 (USD 1,000) 30,445 (USD 1,000) 1,000 %40.00 - - - Invested company under equity method (Note 1) Eclat CaymanEclat Textile (ID) Indonesia Design, manufacture, processing and sale of clothing 15 (USD 0.48) 6 (USD 0.20) 0.05 %- 13 116,249 - Subsidiaries (Note 1)(Note 2) (Note 3) Note 1: The rate as of September 30, 2025 was USD 1 to NTD 30.445. Note 2: Transaction listed above has been eliminated during preparing consolidated financial statements. Note 3: Eclat Textile (ID) was mutually set up by the Company and Eclat Cayman. The shareholding ratios are 99.9996% and 0.0004%, respectively. Note 4: Accumulated translation is included. (c) Information on investment in Mainland China: None. (14) Segment information The reconciliation of operating segments of the Group were as follows: For the three months ended September 30, 2025 Fabrics Garments Adjustments and write off Total Revenue From external clients $ 3,516,696 6,116,730 - 9,633,426 Inter-segments 1,864,390 1,211,752 (3,076,142) - Total revenue $ 5,381,086 7,328,482 (3,076,142) 9,633,426 Profit or loss from reportable segment $ 1,142,034 983,141 (36,376) 2,088,799 For the three months ended September 30, 2024 Fabrics Garments Adjustments and write off Total Revenue From external clients $ 3,548,414 6,483,296 - 10,031,710 Inter-segments 1,458,499 1,239,602 (2,698,101) - Total revenue $ 5,006,913 7,722,898 (2,698,101) 10,031,710 Profit or loss from reportable segment $ 898,364 1,426,360 (109,641) 2,215,083
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33 ECLAT TEXTILE CO., LTD AND SUBSIDIARIES Notes to Consolidated Financial Statements For the nine months ended September 30, 2025 Fabrics Garments Adjustments and write off Total Revenue From external clients $ 9,854,089 18,871,536 - 28,725,625 Inter-segments 5,621,889 4,143,497 (9,765,386) - Total revenue $ 15,475,978 23,015,033 (9,765,386) 28,725,625 Profit or loss from reportable segment $ 2,842,763 2,344,238 (181,586) 5,005,415 For the nine months ended September 30, 2024 Fabrics Garments Adjustments and write off Total Revenue From external clients $ 10,208,220 17,049,405 - 27,257,625 Inter-segments 4,140,484 3,555,843 (7,696,327) - Total revenue $ 14,348,704 20,605,248 (7,696,327) 27,257,625 Profit or loss from reportable segment $ 2,844,185 3,594,914 (217,356) 6,221,743