XML 89 R41.htm IDEA: XBRL DOCUMENT

Financial instruments

12 Months Ended

Dec. 31, 2025

Notes and other explanatory information [abstract]

34. Financial instruments

a) Financial instruments by category

Schedule of Financial Instruments

	As of		As of
	December 31, 2025		December 31, 2024
Financial assets
Financial assets at amortized cost
Cash and cash equivalents	$	97,669	$	649,106
Financial assets at amortized cost		455,133		574,391
Accounts receivable		3,578,974		1,277,928
Accounts receivable due from related parties		-		5,029,583
Other receivables		2,638		1,952,834
Other receivables due from related parties		-		526,882
Long-term receivables due from related parties		-		8,300,723
Guarantee deposits		142,364		133,390
Total Financial Assets	$	4,276,778	$	18,444,837
Financial liabilities
Financial liabilities at amortized cost
Short-term bank loans	$	2,741,552	$	8,999,751
Short-term loans from a related party		8,249,052		-
Accounts payable		180,954		209,567
Other payables		941,159		802,840
Long-term loans (including current portion)		1,652,258		1,037,768
Total Financial Liability	$	13,764,975	$	11,049,926
Lease liabilities	$	82,078	$	163,775

b) Financial risk management policies

(a) The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk.

(b) Risk management is carried out by a central treasury department (Group treasury) under policies approved by the Board of Directors. Group treasury identifies, evaluates, and hedges financial risks in close co-operation with the Group’s operating units. The Board provides written principles for overall risk management, as well as written policies covering specific areas and matters, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.

c) Significant financial risks and degrees of financial risks

(a) Market risk

i) Foreign exchange risk

(i) The Group operates internationally and is exposed to foreign exchange risk arising from the transactions of the Company and its subsidiaries used in various functional currency, primarily with respect to the USD. Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities.

(ii) Management has set up a policy to require group companies to manage their foreign exchange risk against their functional currency. Exchange rate risk arising from the difference between various functional currencies and the reporting currency in the consolidated financial statements is centrally managed by the Group’s finance department.

(iii) The Group’s businesses involve some non-functional currency operations (the Company’s and certain subsidiaries’ functional currency: USD; other certain subsidiaries’ functional currency: NTD, RMB and HKD). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

	December 31, 2025
	Foreign currency (USD equivalent)		Exchange rate		Book value (USD)
Foreign currency: functional currency
Financial assets
Monetary items
USD:NTD	$	545,656		31.37	$	545,656
USD:HKD		443,595		7.78		443,595
Financial liabilities
Monetary items
USD:NTD	$	90,767		31.37	$	90,767
USD:HKD		777,530		7.78		777,530

	December 31, 2024
	Foreign currency (USD equivalent)		Exchange rate		Book value (USD)
Foreign currency: functional currency
Financial assets
Monetary items
USD:NTD	$	6,176,385		32.79	$	6,176,385
USD:HKD		8,387,829		7.77		8,387,829
Financial liabilities
Monetary items
USD:NTD	$	3,430,664		32.79	$	3,430,664
USD:HKD		2,237,392		7.77		2,237,392

(iv) Analysis of foreign currency market risk arising from significant foreign exchange variation:

Year ended

December 31, 2025

Year ended

December 31, 2024

Year ended

December 31, 2023

Foreign exchange gains (losses)

727,618

(71,960

)

363,269

(v) Analysis of foreign currency market risk arising from significant foreign exchange variation:

	Sensitivity analysis
	December 31, 2025
	Degree of variation			Effect on profit or loss		Effect on other comprehensive income
Foreign currency: functional currency
Financial assets
Monetary items
USD:NTD		5	%	$	27,283	$	-
USD:HKD		5	%		22,180		-
Financial liabilities
Monetary items
USD:NTD		5	%	$	4,538	$	-
USD:HKD		5	%		38,877		-

	Sensitivity analysis
	December 31, 2024
	Degree of variation			Effect on profit or loss		Effect on other comprehensive income
Foreign currency: functional currency
Financial assets
Monetary items
USD:NTD		5	%	$	308,819	$	-
USD:HKD		5	%		419,391		-
Financial liabilities
Monetary items
USD:NTD		5	%	$	171,533	$	-
USD:HKD		5	%		111,870		-

ii) Cash flow interest rate risk

(i) The Group’s main interest rate risk arises from short-term loans and long-term loans with variable rates, which expose the Group to cash flow interest rate risk.

For the years ended December 31, 2025 and 2024, the Group’s loans at variable rate were mainly denominated in NTD and USD.

(ii) The Group’s loans are measured at amortized cost. The loans are periodically contractually repriced and to that extent are also exposed to the risk of future changes in market interest rates.

(iii) If the borrowing interest rate had increased/decreased by 1% with all other variables held constant, profit would have increased/decreased as follows:

Year ended

December 31, 2025

Year ended

December 31, 2024

Year ended

December 31, 2023

Profit increased/decreased

126,429

100,728

79,451

The main factor is that changes in interest expense result in floating-rate loans.

(b) Credit risk

i) Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations.

The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms, and the contract cash flows of debt instruments stated at amortized cost.

ii) The Group manages their credit risk, taking into consideration the entire group’s concern. According to the Group’s credit policy, each local entity in the Group is responsible for managing and analyzing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered.

Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the Board of Directors.

The utilization of credit limits is regularly monitored.

iii) In line with credit risk management procedure, when the contract payments of the counterparty were past due over 360 days

iv) The Group adopts the following assumptions under IFRS 9 to assess whether there has been a significant increase in credit risk on that instrument since initial recognition:

If the contract payments were past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.

v) The Group classifies customer’s accounts receivable in accordance with credit risk on trade and customer type. The Group applies the modified approach using a provision matrix based on the loss rate methodology to estimate expected credit loss under the provision matrix basis.

vi) The Group wrote-off the financial assets, which cannot be reasonably expected to be recovered, after initiating recourse procedures. However, the Group will continue executing the recourse procedures to secure their rights.

vii) The Group used the forecast ability to adjust historical and timely information to assess the default possibility of accounts receivable. The loss rate methodology is as follows:

Schedule of loss rate methodology

	Not past due			Up to 30 days past due			31 to 90 days past due			91 to 180 days past due			Over 180 days past due			Total
At December 31, 2025
Expected loss rate		0.01	%		0.08	%		14.2	%		92.93	%		92.63	%		-
Total book value	$	1,764,589		$	249,410		$	1,558,011		$	5,499		$	1,465		$	3,578,974
Expected credit loss	$	122		$	203		$	257,810		$	72,269		$	1,357		$	331,761
At December 31, 2024
Expected loss rate		0.00	%		0.00	%		0.00	%		0.61	%		99.72	%		-
Total book value	$	1,210,294		$	49,695		$	17,939		$	-		$	-		$	1,277,928
Expected credit loss	$	-		$	-		$	-		$	-		$	-		$	-

viii) Movements in relation to the Group applying the modified approach to provide loss allowance for accounts receivable and lease payments receivable are as follows:

	As of December 31, 2025			As of December 31, 2024
	Expected credit loss			Expected credit loss
At January 1	$	-		$	97,332
Provision for impairment		(19,247,269	)		(8,365	)
Write-offs		18,915,508			(88,967	)
At December 31	$	(331,761	)	$	-

The allowance for credit losses is reduced when the Group determined that the receivables are uncollectible. During the year ended December 31, 2025, the Group wrote off $18,915,508 of accounts receivable. These balances, which were previously fully provided for, primarily related to outstanding amounts from YMA DG, and Forwell. The write-offs were executed as these balances were deemed uncollectible after exhaustive recovery efforts.

ix) For investments in debt instruments at amortized cost, the credit rating levels are presented below:

	12 months		Significant increase in credit risk		Impairment of credit		Total
	2025
			Lifetime
	12 months		Significant increase in credit risk		Impairment of credit		Total
Financial assets at amortized cost	$	455,133	$	-	$	-	$	455,133
Other receivables (including Long-term receivables)	$	2,638	$	-	$	-	$	2,638
Other receivables from related parties	$	-	$	-	$	-	$	-
Guarantee deposits	$	142,364	$	-	$	-	$	142,364

	12 months		Significant increase in credit risk		Impairment of credit		Total
	2024
			Lifetime
	12 months		Significant increase in credit risk		Impairment of credit		Total
Financial assets at amortized cost	$	574,391	$	-	$	-	$	574,391
Other receivables	$	1,952,834	$	-	$	-	$	1,952,834
Other receivables from related parties	$	526,882		-		-	$	526,882
Guarantee deposits paid	$	133,390	$	-	$	-	$	133,390

i) Cash flow forecasting is performed in the operating entities of the Group and aggregated by Group treasury. Group treasury monitors rolling forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs.

ii) Surplus cash held by the operating entities over and above balance required for working capital management are transferred to the Group treasury. Group treasury invests surplus cash in interest bearing current accounts, time deposits, money market deposits, choosing instruments with appropriate maturities or sufficient liquidity to provide sufficient head-room as determined by the above-mentioned forecasts.

iii) The unused credit lines from bank loans of the Group as of December 31, 2025 and 2024 are $10,332,185 and $1,734,866, respectively.

	As of		As of
	December 31, 2025		December 31, 2024
Floating rate:
Expiring within one year	$	6,610,518	$	1,645,813
Expiring beyond one year		3,721,667		89,053
	$	10,332,185	$	1,734,866

To acquire building and land as headquarter, the Group has obtained credit lines of mortgage loans amounted to $5,323,557 (NT$167,000,000) and $2,226,289 as of December 31, 2025 and 2024, respectively, which are not included in the aforementioned unused credit lines. If the credit lines are used, the maturity of the mortgage loans is 20 years.

iv) The table below analyses the Group’s non-derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for non-derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.

As of December 31, 2025	Less than 1 year		Between 1 year and 3 years		Total
Non-derivative financial liabilities
Short-term bank loans	$	2,741,552	$	-	$	2,741,552
Short-term loans from a related party		8,249,052		-		8,249,052
Accounts payable		180,954		-		180,954
Other payables		941,159		-		941,159
Lease liabilities		82,078		-		82,078
Long-term loans (including current portion)		624,620		1,027,638		1,652,258

As of December 31, 2024	Less than 1 year		Between 1 year and 3 years		Total
Non-derivative financial liabilities
Short-term loans	$	8,999,751	$	-	$	8,999,751
Accounts payable		209,567		-		209,567
Other payables		802,840		-		802,840
Lease liabilities		163,775		-		163,775
Long-term loans (including current portion)		42,478		995,290		1,037,768