ACER — Audit Report / Information 2023

Nov 3, 2023

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Stock Code:2353

ACER INCORPORATED

Parent-Company-Only Financial Statements With Independent Auditors’ Report For the Years Ended December 31, 2023 and 2022

The independent auditors’ report and the accompanying parent-company-only financial statements are 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’ report and parent-company-only financial statements, the Chinese version shall prevail.

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Table of contents

Contents 1. Cover Page 2. Table of Contents 3. Independent Auditors’ Report 4. Parent-Company-Only Balance Sheets 5. Parent-Company-Only Statements of Comprehensive Income 6. Parent-Company-Only Statements of Changes in Equity 7. Parent-Company-Only Statements of Cash Flows 8. Notes to Parent-Company-Only Financial Statements (1) Organization and business (2) Authorization of the parent-company-only financial statements (3) Application of new and revised accounting standards and interpretations (4) Summary of material accounting policies (5) Critical accounting judgments and key sources of estimation and assumption uncertainty (6) Significant account disclosures (7) Related-party transactions (8) Pledged assets (9) Significant commitments and contingencies (10) Significant loss from disaster (11) Significant subsequent events (12) Others (13) Additional disclosures (a) Information on significant transactions (b) Information on investees (c) Information on investment in Mainland China (d) Major shareholders (14) Segment information 9. List of major account titles

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KPMG

台北市110615信義路5段7號68樓(台北101大樓) 電 話 Tel + 886 2 8101 6666 68F., TAIPEI 101 TOWER, No. 7, Sec. 5, 傳 真 Fax + 886 2 8101 6667 Xinyi Road, Taipei City 110615, Taiwan (R.O.C.) 網 址 Web kpmg.com/tw

Independent Auditors’ Report

To the Board of Directors Acer Incorporated:

Opinion

We have audited the financial statements of Acer Incorporated(“the Company”), which comprise the balance sheet as of December 31, 2023 and 2022, the statement of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the financial statements, including a summary of material accounting policies.

In our opinion, the accompanying parent-company-only financial statements present fairly, in all material respects, the parent-company-only financial position of the Company as of December 31, 2023 and 2022, and its parent-company-only financial performance and its parent-company-only cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

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

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the parent-company-only financial statements of the current period. These matters were addressed in the context of our audit of the parent-company-only financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matters for the Company’s parent-company-only financial statements for the year ended December 31, 2023 are stated as follows:

1. Revenue recognition

Refer to Note 4(p) for the accounting policies on recognizing revenue, and Note 5(a) for uncertainty of accounting estimations and assumptions for sales allowances, respectively, to the parent-company-only financial statements.

KPMG, a Taiwan partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

3-1

Description of key audit matter:

The Company engaged primarily in the sale of brand-name IT products. Revenue is recognized depending on the various trade terms agreed with customers. This exposes the Company to the risk that the sales transactions made close to the balance sheet date are not recorded in the appropriate period. Furthermore, the accrual of sales allowances based on business practice is subject to management’s judgment, which involves significant uncertainty. Consequently, the revenue recognition and accrual of sales allowances have been identified as one of the key audit matters.

How the matter was addressed in our audit:

In relation to the key audit matters above, we have performed certain audit procedures including, among others, testing the design and operating effectiveness of the Company’s internal controls over the timing of revenue recognition; performing a sample test of sales transactions taking place before and after the balance sheet date to ensure that revenue was recognized in the appropriate period; assessing the methodology used by management in estimating sales allowances, including the reasonableness of key assumptions; and inspecting the historical payments of sales allowances to evaluate the reasonableness of the sales allowances estimated by management.

2. Valuation of inventories

Refer to Note 4(g) for the accounting policies on inventory valuation, Note 5(b) for uncertainty of accounting estimations and assumptions for inventory valuation and Note 6(e) for the details of the write-down of inventories, respectively, to the parent-company-only financial statements.

Description of key audit matter:

Inventories are measured at the lower of cost and net realizable value. Due to the rapid innovation of the information technology products and fierce market competition, the Company’s product price may fluctuate rapidly. Furthermore, the stocks for products and key components may exceed customers’ demands thus becoming obsolete. These factors expose the Company to significant level of uncertainty particularly in the area of estimating net realizable value, which is subject to management’s judgments. Therefore, the valuation of inventories has been identified as one of the key audit matters.

How the matter was addressed in our audit:

In relation to the key audit matter above, we have performed certain audit procedures including, among others, evaluating whether valuation of inventories was accounted for in accordance with the Company’s accounting policies; obtaining the inventory aging report, analyzing the fluctuation of inventory aging and selecting samples to verify the accuracy of inventory aging classification; and testing the net realizable value of inventories to evaluate the reasonableness of inventory provisions.

3. Impairment of goodwill from investment in subsidiaries

Refer to Note 4(n) for the accounting policies on impairment of non-financial assets, Note 5(c) for uncertainty of accounting estimations and assumptions for goodwill impairment and Note 6(h) for the evaluation of goodwill impairment, respectively, to the parent-company-only financial statements.

3-2

Description of key audit matter:

Goodwill arising from acquisition of subsidiaries, which are included within the carrying amount of investments accounted for using the equity method, is subject to impairment test annually or at the time there are indications that goodwill may have been impaired. The assessment of the recoverable amount of the cashgenerating unit of goodwill involves management’s judgment and estimation with respect to the future cash flows and key assumptions which are complex and involve significant uncertainty. Accordingly, the assessment of impairment of goodwill has been identified as one of the key audit matters.

How the matter was addressed in our audit:

In relation to the key audit matter above, we have performed certain audit procedures including, among others, assessing the basis used by management for identifying the cash-generating units and whether book value of assets belonging to respective cash-generating units have been completely covered; assessing the appropriateness of the valuation method and key assumptions (in particular projected sales growth rate and weighted-average cost of capital) used by the management in measuring the recoverable amount; assessing the historical reasonableness of management’s estimates of financial forecasts, and performing a sensitivity analysis to assess the impact of variations in key assumptions. In addition to the above audit procedures, we have also involved a valuation specialist to evaluate the appropriateness of the weighted-average cost of capital used and its underlying assumptions; and inspecting the adequacy of the Company’s disclosures of related information on impairment evaluation of goodwill.

Responsibilities of Management and Those Charged with Governance for the Parent-Company-Only Financial Statements

Management is responsible for the preparation and fair presentation of the parent-company-only financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and for such internal control as management determines is necessary to enable the preparation of parent-company-only financial statements that are free from material misstatement, whether due to fraud or error.

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

Those charged with governance (including members of the Audit Committee) are responsible for overseeing the Company’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Parent-Company-Only Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial parent-company-only statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these parent-company-only financial statements.

3-3

As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgment and professional skepticism throughout the audit. We also:

1. Identify and assess the risks of material misstatement of the parent-company-only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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

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

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

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

6. Obtain sufficient appropriate audit evidence regarding the financial information of the investee companies accounted for using the equity method to express an opinion on the parent-company-only financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.

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

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

3-4

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

The engagement partners on the audit resulting in this independent auditors’ report are Shih, Wei-Ming and Kao, Ching-Wen.

KPMG

Taipei, Taiwan (Republic of China) March 14, 2024

Notes to Readers

The accompanying parent-company-only financial statements are intended only to present the parent-company-only 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 audit such parent-company-only financial statements are those generally accepted and applied in the Republic of China.

The independent auditors’ report and the accompanying parent-company-only financial statements are 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’ report and parent-company-only financial statements, the Chinese version shall prevail.

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(English Translation of Parent-Company-Only Financial Statements and Report Originally Issued in Chinese)

ACER INCORPORATED

Parent-Company-Only Balance Sheets

December 31, 2023 and 2022

(Expressed in Thousands of New Taiwan Dollars)

December 31, 2023 Assets Amount % Current assets: 1100 Cash and cash equivalents (note 6(a)) $ 18,363,188 12 1110 Financial assets measured at fair value through profit or loss－ current (note 6(b)) 59,412 - 1136 Financial assets measured at amortized cost－current (note 6(g)) 461,025 - 1170 Notes and accounts receivable, net (notes 6(c) & (v)) 4,037,018 3 1180 Notes and accounts receivable from related parties (notes 6(c) & (v) and 7) 13,018,418 9 1200 Other receivables, net (note 6(d)) 411,520 - 1210 Other receivables from related parties (notes 6(d) and 7) 1,217,952 1 1220 Current income tax assets 101,880 - 130X Inventories (note 6(e)) 13,780,973 9 1476 Other financial assets－current (note 6(a)) 1,239,900 1 1479 Other current assets 473,761 - Total current assets 53,165,047 35 Non-current assets: 1517 Financial assets measured at fair value through other comprehensive income－non-current (note 6(f)) 10,112,654 7 1536 Financial assets measured at amortized cost－non-current (note 6(g)) 4,211,756 3 1550 Investments accounted for using the equity method (note 6(h)) 78,036,358 51 1600 Property, plant and equipment (note 6(i)) 1,805,810 1 1755 Right-of-use assets (note 6(j)) 80,633 - 1760 Investment property (note 6(k)) 827,742 1 1780 Intangible assets (note 6(l)) 179,704 - 1840 Deferred income tax assets (note 6(s)) 3,081,892 2 1980 Other financial assets－non-current (note 8) 152,782 - 1990 Other non-current assets 34,547 - Total non-current assets 98,523,878 65 Total assets $ 151,688,925 100

December 31, 2022

Amount % 16,424,913 12 125,665 - - - 3,569,975 3 12,743,460 9 152,614 - 1,049,499 1 56,483 - 12,515,946 9 10,500 - 239,666 - 46,888,721 34 6,465,744 5 797,782 1 77,041,422 56 1,754,509 1 120,214 - 824,318 1 179,677 - 3,082,794 2 148,466 - 46,457 - 90,461,383 66 137,350,104 100

(Continued)

See accompanying notes to parent-company-only financial statements.

4-1

(English Translation of Parent-Company-Only Financial Statements and Report Originally Issued in Chinese)

ACER INCORPORATED

Parent-Company-Only Balance Sheets (Continued)

December 31, 2023 and 2022

(Expressed in Thousands of New Taiwan Dollars)

Liabilities and Equity Current liabilities: 2120 Financial liabilities measured at fair value through profit or loss－ current (note 6(b)) 2130 Contract liabilities－current (note 6(v)) 2170 Accounts payable 2180 Accounts payable to related parties (note 7) 2200 Other payables (note 6(w)) 2220 Other payables to related parties (note 7) 2230 Current tax liabilities (note 6(p) and 9) 2250 Provisions－current 2280 Lease liabilities－current (note 6(o)) 2365 Refund liabilities－current 2399 Other current liabilities Total current liabilities Non-current liabilities: 2530 Bonds payable (note 6(n)) 2540 Long-term debt (note 6(m)) 2570 Deferred income tax liabilities (note 6(s)) 2580 Lease liabilities－non-current (note 6(o)) 2600 Other non-current liabilities (note 6(r)) 2622 Long-term payable to related parties (note 7) Total non-current liabilities Total liabilities Equity (note 6(f),(h) & (t)): 3110 Common stock 3200 Capital surplus 3300 Retained earnings 3400 Other equity 3500 Treasury stock Total equity Total liabilities and equity	December 31, 2023		December 31, 2022 Amount % 714,504 1 8,809 - 21,099,402 15 758,286 1 24,676,398 18 2,895,984 2 1,891,249 1 1,011,266 1 63,209 - 2,781,608 2 276,737 - 56,177,452 41 10,000,000 7 - - 4,530,059 4 57,923 - 624,079 - 13,134 - 15,225,195 11 71,402,647 52 30,478,538 22 27,795,883 20 14,897,145 11 (4,309,253) (3) (2,914,856) (2) 65,947,457 48 137,350,104 100

See accompanying notes to parent-company-only financial statements.

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(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese)

ACER INCORPORATED

Parent-Company-Only Statements of Comprehensive Income

For the years ended December 31, 2023 and 2022

(Expressed in Thousands of New Taiwan Dollars , Except for Earnings Per Common Share)

4000 Net revenue (notes 6(v) and 7) 5000 Cost of revenue (notes 6(e) & (p) and 7) Gross profit 5920 Realized (unrealized) gross profit on sales to subsidiaries, associates and joint ventures Realized gross profit Operating expenses (notes 6(c), (i), (j), (k), (l), (o), (p), (q), (r) & (w), 7 and 12): 6100 Selling expenses 6200 General and administrative expenses 6300 Research and development expenses Total operating expenses 6500 Other operating income and expenses, net (notes 6(o), (q) & (x) and 7) Operating income Non-operating income and loss: 7100 Interest income (notes 6(y) and 7) 7010 Other income (note 6(y)) 7020 Other gains and losses (notes 6(y) and 7) 7050 Finance costs (notes 6(o) & (y) and 7) 7060 Share of profits of subsidiaries, associates and joint ventures (note 6(h)) Total non-operating income and loss Income before taxes 7950 Income tax expenses (note 6(s)) Net Income Other comprehensive income (loss)(notes 6(f), (h), (r), (s) & (t)): 8310 Items that will not be reclassified subsequently to profit or loss 8311 Remeasurements of defined benefit plans 8316 Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income 8330 Share of other comprehensive income of subsidiaries and associates 8349 Income tax related to items that will not be reclassified subsequently to profit or loss Total items that will not be reclassified subsequently to profit or loss 8360 Items that may be reclassified subsequently to profit or loss 8361 Exchange differences on translation of foreign operations 8399 Income tax related to items that may be reclassified subsequently to profit or loss Total items that may be reclassified subsequently to profit or loss Other comprehensive income (loss), net of taxes Total comprehensive income for the year Earnings per share (in New Taiwan dollars) (note 6(u)): 9750 Basic earnings per share 9850 Diluted earnings per share	2023	% 100 (95) 5 - 5 (1) (1) (1) (3) - 2 1 - 1 - - 2 4 (1) 3 - 5 - - 5 - - - 5 8 1.64 1.64	2022 Amount 169,284,764 (159,192,798) 10,091,966 40,330 10,132,296 (2,772,572) (1,283,169) (1,991,463) (6,047,204) 132,051 4,217,143 74,621 519,988 (59,447) (113,533) 1,721,078 2,142,707 6,359,850 (1,356,162) 5,003,688 89,278 (1,127,724) 386,990 (17,856) (669,312) 4,595,828 - 4,595,828 3,926,516 8,930,204	% 100 (94) 6 - 6 (1) (1) (1) (3) - 3 - - - - 1 1 4 (1) 3 - (1) - - (1) 3 - 3 2 5 1.67 1.65
	Amount $ 150,992,910 (143,493,770) 7,499,140 (37,423) 7,461,717 (1,400,978) (1,054,664) (1,612,880) (4,068,522) 130,515 3,523,710 822,112 400,382 1,574,350 (92,086) 60,104 2,764,862 6,288,572 (1,356,628) 4,931,944 4,508 7,165,914 618,551 (902) 7,788,071 421,565 - 421,565 8,209,636 $ 13,141,580 $ $

See accompanying notes to parent-company-only financial statements.

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(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese)

ACER INCORPORATED

Parent-Company-Only Statements of Changes in Equity

For the years ended December 31, 2023 and 2022

(Expressed in Thousands of New Taiwan Dollars)

Balance at January 1, 2022 Net income for the year Other comprehensive income (loss) for the year Total comprehensive income (loss) for the year Appropriation and distribution of retained earnings: Legal reserve Special reserve Cash dividends Adjustments of capital surplus for the cash dividends distributed to subsidiaries Share of changes in equity of associates Changes in ownership interests in subsidiaries Difference between consideration and carrying amount of subsidiaries acquired or disposed Organizational restructuring under common control Stock option compensation cost of subsidiaries Disposal of financial assets measured at fair value through other comprehensive income by subsidiaries Liquidation of subsidiaries Balance at December 31, 2022 Net income for the year Other comprehensive income (loss) for the year Total comprehensive income (loss) for the year Appropriation and distribution of retained earnings: Legal reserve Reversal of special reserve Cash dividends Adjustments of capital surplus for the cash dividends distributed to subsidiaries Disposal of the Company’s share by subsidiaries recognized as treasury share transactions Share of changes in equity of associates Changes in ownership interests in subsidiaries Difference between consideration and carrying amount of subsidiaries acquired or disposed Organizational restructuring under common control Stock option compensation cost of subsidiaries Disposal of financial assets measured at fair value through other comprehensive income by the Company Disposal of financial assets measured at fair value through other comprehensive income by subsidiaries Balance at December 31, 2023	Common stock $ 30,478,538 - - - - - - - - - - - - - - 30,478,538 - - - - - - - - - - - - - - - $ 30,478,538	Capital surplus			Retained earnings	Retained earnings				Other equity	Other equity		Treasury stock (2,914,856) - - - - - - - - - - - - - - (2,914,856) - - - - - - - 202,082 - - - - - - - (2,712,774)	Total equity 63,676,716 5,003,688 3,926,516 8,930,204 - - (6,949,107) 107,298 (2,746) 166,459 12,345 2,083 2,350 - 1,855 65,947,457 4,931,944 8,209,636 13,141,580 - - (4,571,781) 70,119 275,197 1,640 (119,222) (19,538) 252 820 - - 74,726,524
				Legal reserve 1,456,427 - - - 1,058,914 - - - - - - - - - - 2,515,341 - - - 495,986 - - - - - - - - - - - 3,011,327	Special reserve 4,833,750 - - - - 2,564,442 - - - - - - - - - 7,398,192 - - - - (84,251) - - - - - - - - - - 7,313,941	Unappropriated retained earnings 10,596,212 5,003,688 - 5,003,688 (1,058,914) (2,564,442) (6,949,107) - - - - - - (43,825) - 4,983,612 4,931,944 - 4,931,944 (495,986) 84,251 (4,571,781) - - - - - - - 3,212,026 21,652 8,165,718	Total		Foreign currency translation differences	Unrealized gain (loss) from financial assets measured at fair value through other comprehensive income		Total (8,287,624) - 3,926,516 3,926,516 - - - - - 12,394 - (6,219) - 43,825 1,855 (4,309,253) - 8,209,636 8,209,636 - - - - - - (2,107) - - - (3,212,026) (21,652) 664,598
		27,514,269					16,886,389		(8,805,597) - 4,595,828 4,595,828 - - - - - (287) - (11,702) - - 1,855 (4,219,903) - 421,565 421,565 - - - - - - (1,364) - - - - - (3,799,702)		746,183
		- -					5,003,688 -
		-					5,003,688

See accompanying notes to parent-company-only financial statements.

7

(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese)

ACER INCORPORATED

Parent-Company-Only Statements of Cash Flows

For the years ended December 31, 2023 and 2022 (Expressed in Thousands of New Taiwan Dollars)

2023 Cash flows from operating activities: Income before income tax $ 6,288,572 Adjustments for: Adjustments to reconcile profit or loss: Depreciation 150,584 Amortization 44,723 Net loss (gain) on financial assets measured at fair value through profit or loss 1,844 Effects of exchange rate changes in financial assets measured at amortized cost (2,449) Interest expense 92,086 Interest income (822,112) Dividend income (400,382) Share of profits of subsidiaries, associates and joint ventures (60,104) Gain on disposal of equipment and intangible assets (418) Gain on disposal of investments (3,967) Loss on liquidation of subsidiaries - Gain on bargain purchase (2,216) Property, Plant and equipment reclassified to cost 323 Unrealized (realized) profit from sales to subsidiaries, associates and joint ventures 37,423 Total adjustments for profit or loss (964,665) Changes in operating assets and liabilities: Changes in operating assets: Derivative financial instruments measured at fair value through profit or loss (159,164) Notes and accounts receivable (467,043) Notes and accounts from related parties (274,958) Inventories (1,269,222) Other receivables and other current assets (447,761) Other non-current assets 10,596 Changes in operating assets (2,607,552) Changes in operating liabilities: Accounts payable 9,856,766 Payables to related parties (2,146,537) Refund liabilities (137,522) Other payables and other current liabilities (3,662,347) Provisions (214,022) Contract liabilities 2,046 Other non-current liabilities and long-term payables to related parties (7,020) Changes in operating liabilities 3,691,364 Cash provided by operations 6,407,719 Interest received 752,829 Income taxes paid (929,570) Net cash provided by operating activities 6,230,978

2022 6,359,850 144,017 23,271 (907) (57,817) 113,533 (74,621) (519,988) (1,721,078) (670) - 2,301 - - (40,330) (2,132,289) 887,025 2,765,789 24,775,065 3,687,416 112,354 (7,369) 32,220,280 (26,878,442) 2,732,230 (854,679) (2,041,977) 176,541 (703) (33,488) (26,900,518) 9,547,323 66,508 (2,716,260) 6,897,571

(Continued)

See accompanying notes to parent-company-only financial statements.

7-1

(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese)

ACER INCORPORATED

Parent-Company-Only Statements of Cash Flows (Continued)

For the years ended December 31, 2023 and 2022

(Expressed in Thousands of New Taiwan Dollars)

Cash flows from investing activities: Acquisition of financial assets measured at fair value through other comprehensive income Proceeds from disposal of financial assets measured at fair value through other comprehensive income Acquisition of financial assets measured at amortized cost Additions to investments accounted for using the equity method Proceeds from disposal of investments accounted for using the equity method Proceeds from capital reduction or liquidation of investments accounted for using the equity method Acquisition of property, plant and equipment and investment property Proceeds from disposal of equipment and intangible assets Increase in receivables from related parties Acquisition of intangible assets Decrease (increase) in other financial assets Increase in assets recognized from costs to fulfill contracts with customers Dividends received Net cash flows used in investing activities Cash flows from financing activities: Increase in short-term borrowings Decrease in short-term borrowings Increase in long-term debt Payment of lease liabilities Increase (decrease) in loans from related parties Cash dividends Interest paid Net cash flows used in financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period

See accompanying notes to parent-company-only financial statements.

8

(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements For the years ended December 31, 2023 and 2022

(Expressed in Thousands of New Taiwan Dollars, Except for Per Share Information And Otherwise Specified)

1. Organization and business

Acer Incorporated (the “Company”) was incorporated on August 1, 1976, as a company limited by shares under the laws of the Republic of China (“ R.O.C.” ) and registered under the Ministry of Economic Affairs, R.O.C.

The Company is primarily engaged in marketing and sale of brand-name IT products. The Company also builds innovative ecosystems in consumer and commercial markets to provide more products and integrated applications along with software, hardware and related services. In addition, the Company aims at building multiple business engines to foster innovation of products and application services for market expansion.

2. Authorization of the parent-company-only financial statements

These parent-company-only financial statements were authorized for issuance by the Board of Directors on March 14, 2024.

3. Application of new and revised accounting standards and interpretations:

• (a) The impact of the International Financial Reporting Standards (“IFRSs”) endorsed by the Financial Supervisory Commission, R.O.C. (“FSC”) which have already been adopted.

The Company has initially adopted the following new amendments, which do not have a significant impact on its financial statements, from January 1, 2023:

• ●Amendments to IAS 1 “Disclosure of Accounting Policies”

• ●Amendments to IAS 8 “Definition of Accounting Estimates”

• ●Amendments to IAS 12 “ Deferred Tax related to Assets and Liabilities arising from a Single Transaction”

The Company has initially adopted the new amendment, which do not have a significant impact on its financial statements, from May 23, 2023:

• ●Amendments to IAS 12 “International Tax Reform—Pillar Two Model Rules”

• (b) The impact of IFRS endorsed by the FSC but not yet effective

The Company assesses that the adoption of the following new amendments, effective for annual period beginning on January 1, 2024, would not have a significant impact on its financial statements:

• ●Amendments to IAS 1 “Classification of Liabilities as Current or Non-current”

• ●Amendments to IAS 1 “Non-current Liabilities with Covenants”

(Continued)

9

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

• ●Amendments to IAS 7 and IFRS 7 “Supplier Finance Arrangements”

• ●Amendments to IFRS 16 “Lease Liability in a Sale and Leaseback”

• (c) The impact of IFRS issued by IASB but not yet endorsed by the FSC

The Company does not expect the following new and amended standards, which have yet to be endorsed by the FSC, to have a significant impact on its financial statements:

• ●Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and its Associate or Joint Venture”

• ●IFRS 17 “ Insurance Contracts” and amendments to IFRS 17 “ Insurance Contracts”

• ●Amendments to IAS21 “Lack of Exchangeability”

4. Summary of material accounting policies

The material accounting policies presented in the parent-company-only financial statements are summarized as follows. The following accounting policies have been applied consistently to all periods presented in these financial statements.

(a) Statement of compliance

The accompanying parent-company-only financial statements have been prepared in accordance with the “ Regulations Governing the Preparation of Financial Reports by Securities Issuers” ( the “Regulations”).

(b) Basis of preparation

• (i) Basis of measurement

The accompanying parent-company-only financial statements have been prepared on a historical cost basis except for the following items:

• 1) Financial instruments measured at fair value through profit or loss (including derivative financial instruments);

• 2) Financial assets measured at fair value through other comprehensive income; and

• 3) Net defined benefit liability measured at present value of defined benefit obligation less the fair value of plan assets.

(ii) Functional and presentation currency

The functional currency of the Company is determined based on the primary economic environment in which the Company operates. The Company’s parent-company-only financial statements are presented in New Taiwan dollars, which is the Company’s functional currency. Except when otherwise indicated, all financial information presented in New Taiwan dollars has been rounded to the nearest thousand.

(Continued)

10

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

(c) Foreign currency

(i) Foreign currency transactions

Transactions in foreign currencies are translated into the functional currency of the Company using the exchange rates prevailing at the dates of the transactions. At the end of each reporting period (“the reporting date”), monetary items denominated in foreign currencies are translated into the functional currencies using the exchange rate at that date. Non-monetary items denominated in foreign currencies that are measured at fair value are translated into functional currencies using the exchange rate at the date that the fair value was determined. Non-monetary items denominated in foreign currencies that are measured at historical cost are translated using the exchange rate at the date of the transaction.

Exchange differences are generally recognized in profit or loss, except for an investment in equity securities designated as at fair value through other comprehensive income, which are recognized in other comprehensive income.

(ii) Foreign operations

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising from acquisition, are translated into the presentation currency of the Company’s parentcompany-only financial statements at the exchange rates at the reporting date. The income and expenses of foreign operations, excluding foreign operations in hyperinflationary economies, are translated into the presentation currency of the Company’s parent-company-only financial statements at the average exchange rates for the period. All resulting exchange differences are recognized in other comprehensive income.

When a foreign operation is disposed of such that control, joint control, or significant influence is lost, the accumulated exchange differences related to that foreign operation is reclassified to profit or loss. In the case of a partial disposal that does not result in the Company losing control over a subsidiary, the proportionate share of the accumulated exchange differences is reclassified to non-controlling interests. For a partial disposal of the Company’s ownership interest in an associate or joint venture, the proportionate share of the accumulated exchange differences in equity is reclassified to profit or loss.

When the settlement of a monetary receivable from or payable to a foreign operation is neither planned nor likely to occur in the foreseeable future, the monetary item is, in substance, a part of net investment in that foreign operation, and the related foreign exchange gains and losses thereon are recognized as other comprehensive income.

• (d) Classification of current and non-current assets and liabilities

An asset is classified as current when one of the following criteria is met; all other assets are classified as non-current assets:

• (i) It is expected to be realized, or intended to be sold or consumed in the normal operating cycle;

• (ii) It is held primarily for the purpose of trading;

• (iii) It is expected to be realized within twelve months after the reporting period; or

• (iv) The asset is cash or a cash equivalent unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

(Continued)

11

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

A liability is classified as current when one of the following criteria is met; all other liabilities are classified as non-current liabilities:

• (i) It is expected to be settled in the normal operating cycle;

• (ii) It is held primarily for the purpose of trading;

• (iii) It is due to be settled within twelve months after the reporting period; or

• (iv) The Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting period. Terms of a liability that could, at the option of the counterparty, result in its settlement by issuing equity instruments do not affect its classification.

(e) Cash and cash equivalents

Cash consists of cash on hand, checking deposits, and demand deposits. Cash equivalents consist of short-term and highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. Time deposits that meet the above definition and are held for the purpose of meeting short-term cash commitments rather than for investment or other purposes should be classified as cash equivalents.

(f) Financial instruments

Trade receivables and debt securities issued are initially recognized when they are originated. All other financial assets and financial liabilities are initially recognized when the Company becomes a party to the contractual provisions of the instrument. A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at fair value through profit or loss (FVTPL), transaction costs that are directly attributable to its acquisition or issuance. A trade receivable without a significant financing component is initially measured at the transaction price.

(i) Financial assets

On initial recognition, a financial asset is classified as measured at: amortized cost, fair value through other comprehensive income (FVOCI), or fair value through profit or loss (FVTPL). All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.

Financial assets are not reclassified subsequent to their initial recognition unless the Company changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.

1) Financial assets measured at amortized cost

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:

• it is held within a business model whose objective is to hold financial assets to collect contractual cash flows; and

• its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

(Continued)

12

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

These assets are subsequently measured at amortized cost, which is the amount at which the financial asset is measured at initial recognition, plus/minus, the cumulative amortization using the effective interest method, adjusted for any loss allowance. Interest income, foreign exchange gains and losses, as well as impairment, are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.

• 2) Fair value through other comprehensive income ("FVOCI")

A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:

• it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and

• its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in the investment’ s fair value in other comprehensive income. This election is made on an instrument-by-instrument basis.

Debt investments at FVOCI are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment loss are recognized in profit or loss. Other net gains and losses are recognized in other comprehensive income. On derecognition, other comprehensive income accumulated in equity are reclassified to profit or loss.

Equity investments at FVOCI are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized in other comprehensive income. On derecognition, other comprehensive income accumulated in equity is reclassified to retained earnings and is never reclassified to profit or loss.

Dividend income derived from equity investments is recognized on the date that the Company’s right to receive the dividends is established (usually the ex-dividend date).

• 3) Fair value through profit or loss ("FVTPL")

All financial assets not classified as measured at amortized cost or at FVOCI described as above (e.g. financial assets held for trading and those that are managed and whose performance is evaluated on a fair value basis) are measured at FVTPL, including derivative financial assets. On initial recognition, the Company may irrevocably designate a financial asset, which meets the requirements to be measured at amortized cost or at FVOCI, as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

These assets are subsequently measured at fair value. Net gains and losses, including any dividend and interest income, are recognized in profit or loss.

(Continued)

13

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

• 4) Impairment of financial assets

The Company recognizes loss allowances for expected credit losses (“ECL”) on financial assets measured at amortized cost (including cash and cash equivalents, notes and accounts receivable, other receivables and other financial assets) and contract assets.

The Company measures loss allowances for accounts receivable, contract assets and other financial assets at an amount equal to lifetime ECL, except for the following financial assets which are measured using 12-month ECL:

• debt securities that are determined to have low credit risk at the reporting date; and

• bank balances for which credit risk (i.e., the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition.

Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument. 12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).

The maximum period considered when estimating ECLs is the maximum contractual period over which the Company is exposed to credit risk.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. The information includes both quantitative and qualitative information and analysis based on the Company’s historical experience and credit assessment, as well as forward-looking information.

ECLs are probability-weighted estimate of credit losses over the expected life of financial assets. Credit losses are measured as the present value of all cash shortfalls (i.e., the difference between the cash flows due to the Company in accordance with the contract and the cash flows that the Company expects to receive). ECLs are discounted at the effective interest rate of the financial asset.

Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets.

The gross carrying amount of a financial asset is written off when the Company has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. The Company individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. The Company expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Company’s procedures for recovery of amounts due.

(Continued)

14

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

5) Derecognition of financial assets

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

The Company enters into transactions whereby it transfers assets recognized in its balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets; in these cases, the transferred assets are not derecognized.

(ii) Financial liabilities and equity instruments

• 1) Classification of debt or equity

Debt and equity instruments issued by the Company are classified as financial liabilities or equity in accordance with the substance of the contractual agreements and the definitions of a financial liability and an equity instrument.

2) Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. Equity instruments are recognized at the amount of consideration received, less the direct issuing cost.

3) Treasury stock

When shares recognized as equity are repurchased, the amount of the consideration paid, including directly attributable costs, is recognized as a deduction from equity. Repurchased shares are classified as treasury stock. When treasury stock is sold or reissued subsequently, the amount received is recognized as an increase in equity, and the resulting surplus or deficit on the transaction is recognized in capital surplus or retained earnings (if the capital surplus is not sufficient to be written down).

4) Financial liabilities

Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is classified as at FVTPL if it is held for trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in profit or loss.

Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on derecognition is also recognized in profit or loss.

(Continued)

15

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

5) Derecognition of financial liabilities

The Company derecognizes a financial liability when its contractual obligation has been fulfilled or cancelled, or has expired. The Company also derecognizes a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value. The difference between the carrying amount of a financial liability derecognized and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.

• 6) Offsetting of financial assets and liabilities

Financial assets and liabilities are presented on a net basis only when the Company has the legally enforceable right to offset and intends to settle such financial assets and liabilities on a net basis or to realize the assets and settle the liabilities simultaneously.

• (iii) Derivative financial instruments

The Company uses derivative financial instruments to hedge its foreign currency exposures. Embedded derivatives are separated from the host contract and accounted for separately if the host contract is not a financial asset and certain criteria are met. Derivatives are initially measured at fair value. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are recognized in profit or loss.

(g) Inventories

Inventories are measured at the lower of cost and net realizable value. The cost of inventories is calculated using the weighted-average method, and includes expenditure incurred in bringing them to their existing location and condition. Net realizable value represents the estimated selling price in the ordinary course of business, less all estimated costs of completion and necessary selling expenses.

• (h) Investments accounted for using the equity method

Investments accounted for using the equity method include investments in associates and interests in joint venture.

An associate is an entity in which the Company has significant influence, but not control or joint control, over their financial and operating policies.

Investments in associates are accounted for using the equity method and are recognized initially at cost. The cost of the investment includes transaction costs. The carrying amount of the investment in associates includes goodwill arising from the acquisition less any accumulated impairment losses. When necessary, the entire carrying amount of the investment (including goodwill) will be tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

(Continued)

16

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

The Company recognizes its share of the profit or loss and other comprehensive income of those associates from the date on which significant influence commences until the date on which significant influence ceases. The Company recognizes any changes of its proportionate share in the investee within capital surplus, when an associate’s equity changes due to reasons other than profit and loss or comprehensive income, which did not result in changes in percentage of ownership.

Gains and losses resulting from transactions between the Company and an associate are recognized only to the extent of unrelated investors’ interests in the associate.

Adjustments are made to associates’ financial statements to conform to the accounting polices applied by the Company.

When the Company’s share of losses of an associate equals or exceeds its interests in an associate, it discontinues recognizing its share of further losses. After the recognized interest is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the Company has incurred legal or constructive obligations or made payments on behalf of the associate.

The Company discontinues the use of the equity method and measures the retained interest at fair value from the date when its investment ceases to be an associate. The difference between the fair value of retained interest and proceeds from disposing of a part interest in the associate, and the carrying amount of the investment at the date the equity method was discontinued is recognized in profit or loss. The Company accounts for all the amounts previously recognized in other comprehensive income in relation to that associate on the same basis as would have been required if the associates had directly disposed of the related assets or liabilities. If a gain or loss previously recognized in other comprehensive income would be reclassified to profit or loss ( or retained earnings) on the disposal of the related assets or liabilities, the Company reclassifies the gain or loss from equity to profit or loss (or retained earnings) when the equity method is discontinued. If the Company’ s ownership interest in an associate is reduced while it continues to apply the equity method, the Company reclassifies the proportion of the gain or loss that had previously been recognized in other comprehensive income relating to the reduction in ownership interest to profit or loss (or retained earnings).

When the Company subscribes to additional shares in an associate at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment will differ from the amount of the Company’s proportionate interest in the net assets of the associate. The Company records such a difference as an adjustment to investments, with the corresponding amount charged or credited to capital surplus. If the adjustments are charged to capital surplus and the capital surplus resulting from investments accounted for using the equity method is not sufficient, the remaining difference is debited to retained earnings. If the Company’s ownership interest is reduced due to the additional subscription to the shares of the associate by other investors, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate will be reclassified to profit or loss on the same basis as would be required if the associate had directly disposed of the related assets or liabilities.

(Continued)

17

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

A joint venture is a joint arrangement whereby the Company has joint control of the arrangement (i.e. joint ventures) in which the Company has rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities. The Company recognizes its interest in a joint venture as an investment and accounts for that investment using the equity method in accordance with IAS 28 “ Investments in Associates and Joint Ventures” , unless the Company qualifies for exemption from that Standard.

When assessing the classification of a joint arrangement, the Company considers the structure and legal form of the arrangement, the terms in the contractual arrangement, and other facts and circumstances. When the facts and circumstances change, the Company reevaluates whether the classification of the joint arrangement has changed.

(i) Investments in subsidiaries

When preparing the parent-company-only financial statements, investment in subsidiaries which are controlled by the Company is accounted for using the equity method. Carrying amount of investments in subsidiaries includes goodwill arising from initial recognition less any accumulated impairment losses, which is recognized as a reduction of carry amount. Under the equity method, profit or loss and other comprehensive income recognized in parent-company-only financial statement is in line with total comprehensive income attributable to owners of the Parent in the consolidated financial statements. In addition, changes in equity recognized in parent-company-only financial statement is in line with the changes in equity attributable to owners of parent in the consolidated financial statements. Changes in a parent’s ownership interest in a subsidiary that do not result in the loss of control are accounted for within equity.

The Company uses acquisition method for acquisitions of subsidiaries. The goodwill arising from an acquisition is measured as the excess of the acquisition-date fair value of consideration transferred, including the amount of non-controlling interest in the acquiree, over the net of the acquisition-date amounts of the identifiable assets acquired and liabilities assumed (generally at fair value). If the amount calculated above is a deficit balance, the Company recognizes that amount as a gain on a bargain purchase in profit or loss immediately after reassessing whether it has correctly identified all of the assets acquired and all of the liabilities assumed. For each business combination, noncontrolling interest in the acquiree is measured either at fair value or at the non-controlling interest’s proportionate share of the fair value of acquiree’s identifiable net assets.

In an acquisition of new subsidiary achieved in stages, the Company shall remeasure its previously held equity interest in the acquiree at its acquisition-date fair value and recognize the resulting gain or loss in profit or loss. The amount previously recognized in other comprehensive income in relation to the changes in the value of the Company’ s equity interest should be reclassified to profit or loss on the same basis as would be required if the Company had disposed directly of the previously held equity interest.

If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, provisional amounts for the items for which the accounting is incomplete are reported in the financial statements. During the measurement period, the provisional amounts recognized at the acquisition date are retrospectively adjusted, or additional assets or liabilities are recognized, to reflect new information obtained about facts and circumstances that existed as of the acquisition date. The measurement period shall not exceed one year from the acquisition date.

(Continued)

18

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

Acquisition-related costs are expensed as incurred except for the costs related to issuance of debt or equity instruments.

• (j) Property, plant and equipment

• (i) Recognition and measurement

Property, plant and equipment are measured at cost, which includes capitalized borrowing costs, less accumulated depreciation and any accumulated impairment losses.

If significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

Any gain or loss on disposal of an item of property, plant and equipment is recognized in profit or loss.

• (ii) Reclassification to investment property

A property is reclassified to investment property at its carrying amount when the purpose of the property changes from owner-occupied to investment.

• (iii) Subsequent costs

Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.

(iv) Depreciation

Depreciation is calculated on the cost of assets less their residual values and is recognized in profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property, plant and equipment.

Land is not depreciated. The estimated useful lives of property, plant and equipment are as － follows: buildings main structure - 30 to 50 years; air-conditioning system - 10 years; other equipment pertaining to buildings - 20 years; computer and communication equipment - 3 to 5 years; other equipment - 3 to 10 years.

Depreciation methods, useful lives, and residual values are reviewed at each financial yearend, with the effect of any changes in estimate accounted for on a prospective basis.

(k) Investment property

Investment property is property held either to earn rental income or for capital appreciation or for both, but not for sale in the ordinary course of business or for administrative purposes. Investment property is measured at cost on initial recognition, and subsequently at cost, less accumulated depreciation and accumulated impairment losses. The methods for depreciating and determining the useful life and residual value of investment property are the same as those adopted for property, plant and equipment.

Rental income from investment property is recognized as other operating income and expenses on a straight-line basis over the term of the lease. Lease incentives granted are recognized as an integral part of the total rental income, over the term of the lease.

(Continued)

19

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

An investment property is reclassified to property, plant and equipment at its carrying amount when the purpose of the investment property has been changed from investment to owner-occupied.

(l) Leases

At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

(i) As a lessee

The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. In addition, the right-of-use asset is periodically evaluated and reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be reliably determined, the Company’s incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the lease liability comprise the following:

• － fixed payments, including in-substance fixed payments;

• － variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;

• － amounts expected to be payable under a residual value guarantee; and

• － payments for purchase or termination options that are reasonably certain to be exercised.

The lease liability is subsequently measured at amortized cost using the effective interest method. It is remeasured when:

• －

• there is a change in future lease payments arising from the change in an index or rate; or

• － there is a change in the Company’s estimate of the amount expected to be payable under a residual value guarantee; or

• － there is a change of the Company’s assessment on whether it will exercise an option to purchase the underlying asset, or;

(Continued)

20

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

• －

• there is a change in the lease term resulting from a change of the Company’s assessment on whether it will exercise an extension or termination option; or

• － there is any lease modifications in lease subject, scope of the lease or other terms.

At inception or on reassessment of whether a contract contains a lease, the Company allocates the consideration in the contract to each lease component on the basis of their relative standalone prices. However, for the leases of land and buildings, the Company has elected not to separate non-lease components and account for each lease component and any associated nonlease components as a single lease component.

When the lease liability is remeasured, other than lease modifications, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or in profit and loss if the carrying amount of the right-of-use asset has been reduced to zero.

When the lease liability is remeasured to reflect the partial or full termination of the lease for lease modifications that decrease the scope of the lease, the Company accounts for the remeasurement of the lease liability by decreasing the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease, and recognize the difference in profit or loss for any gain or loss relating to the partial or full termination of the lease.

The Company presents right-of-use assets that do not meet the definition of investment properties and lease liabilities as a separate line item respectively in the parent-company-only balance sheets.

The Company has elected not to recognize right-of-use assets and lease liabilities for leases that have a lease term of 12 months or less and leases of low-value assets. The Company recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

• (ii) As a lessor

When the Company acts as a lessor, it determines at lease commencement whether each lease is a finance lease or an operating lease. To classify each lease, the Company makes an overall assessment of whether the lease transfers to the lessee substantially all the risks and rewards incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then the lease is an operating lease. As part of this assessment, the Company considers certain indicators such as whether the lease is for the major part of the economic life of the asset.

When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease. If a head lease is a short-term lease to which the Company applies the exemption described above, then it classifies the sub-lease as an operating lease.

For operating lease, the Company recognizes rental income on a straight-line basis over the lease term.

(Continued)

21

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(m) Intangible assets

(i) Goodwill

Goodwill arising from acquisitions of subsidiaries is accounted for as intangible assets. Refer to note 4(i) for the description of the measurement of goodwill at initial recognition. Goodwill arising from acquisitions of subsidiaries and associates are included in the carrying amount of investments in associates. Goodwill is not amortized but is measured at cost less accumulated impairment losses.

(ii) Trademarks

Trademarks are measured at cost. Subsequent to the initial recognition, trademarks with definite useful lives are carried at cost less accumulated amortization and accumulated impairment losses. Amortization is recognized on a straight-line basis. Trademarks with indefinite useful lives are carried at cost less any accumulated impairment losses and are tested for impairment annually. The useful life of an intangible asset not subject to amortization is reviewed annually at each financial year-end to determine whether events and circumstances continue to support an indefinite useful life assessment for the asset. Any change in the useful life assessment from indefinite to definite is accounted for as a change in accounting estimate.

(iii) Other intangible assets

Other separately acquired intangible assets are carried at cost less accumulated amortization and accumulated impairment losses. Amortization is recognized in profit or loss on a straightline basis over the following estimated useful lives: patents - 4 to 15 years; acquired software - 1 to 3 years.

The residual value, amortization period, and amortization method are reviewed at least at each financial year-end, with the effect of any changes in estimate accounted for on a prospective basis.

(n) Impairment of non-financial assets

The Company assesses at the end of each reporting date whether there is any indication that the carrying amounts of non-financial assets (other than inventories, contract assets, and deferred tax assets) may be impaired. If any such indication exists, then the asset’ s recoverable amount is estimated. Goodwill is tested annually or when there are indications of impairment.

For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets or groups of assets. Goodwill arising from a business combination is allocated to cash-generating units (“CGUs”) or groups of CGUs that are expected to benefit from the synergies of the combination.

The recoverable amount of an individual asset or CGU is the higher of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU.

(Continued)

22

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its recoverable amount. Impairment losses are recognized in profit or loss. They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis.

An impairment loss in respect of goodwill is not reversed. For other non-financial assets, an impairment loss is reversed only to the extent that the asset’s carrying amount that would have been determined (net of depreciation or amortization) had no impairment loss been recognized for the assets in prior years.

(o) Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

(i) Warranties

A provision for warranties is recognized when the underlying products or services are sold. This provision reflects the historical warranty claim rate and the weighting of all possible outcomes against their associated probabilities.

(ii) Others

Provisions for litigation claims and environmental restoration are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

(p) Revenue recognition

(i) Revenue from contracts with customers

Revenue is measured based on the consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control of a good or a service to a customer. The accounting policies for the Company’ s main types of revenue are explained below.

1) Sale of goods

The Company recognizes revenue when control of the products has been transferred, being when the products are delivered to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer’ s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, the acceptance provisions have lapsed, or the Company has objective evidence that all criteria for acceptance have been satisfied.

(Continued)

23

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

The Company recognizes revenue based on the price specified in the contract, net of the estimated volume discounts and rebates. Accumulated experience is used to estimate the discounts and rebates using the expected value method, and revenue is only recognized to the extent that it is highly probable that a significant reversal will not occur. A refund liability is recognized for expected sales discounts and rebate payable to customers in relation to sales made until the end of the reporting period. No element of financing is deemed present as the sales are made with a credit term ranged from 30 to 90 days, which is consistent with the market practice.

The Company’ s obligation to provide a refund for faulty goods under the standard warranty terms is recognized as a provision for warranty. Please refer to note 6(p) for more explanation.

A receivable is recognized when the goods are delivered as this is the point in time that the Company has a right to an amount of consideration that is unconditional.

2) Revenue from service rendered

The Company provides system implementation or integration services to enterprise customers. Revenue from providing services is recognized in the accounting periods in which the services are rendered. For performance obligations that are satisfied over time, revenue is recognized based on the actual service provided to the end of the reporting period as a proportion of the total services to be provided. The proportion of services provided is determined based on the portion of the work performed, the time passed by, or the milestone reached.

Estimates of revenues, costs, or extent of progress toward completion, are revised if circumstances change. Any resulting increases or decreases in estimated revenues or costs are reflected in profit or loss in the period in which the circumstances that give rise to the revision become known by the management.

In case of fixed-price contracts, the customer pays the fixed amount based on a payment schedule. If the accumulated revenue recognized by the Company exceed the payments, a contract asset is recognized. If the payments exceed the accumulated revenue recognized, a contract liability is recognized.

3)

Financing components

The Company does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and the payment made by the customer exceeds one year. As a consequence, the Company does not adjust any of the transaction prices for the time value of money.

(Continued)

24

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(ii) Contract costs

• 1) Incremental costs of obtaining a contract

The Company recognizes the incremental costs of obtaining a contract with a customer as an asset if the Company expects to recover those costs. The incremental costs of obtaining a contract are those costs that the Company incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained. Costs to obtain a contract that would have been incurred, regardless of whether the contract was obtained, shall be recognized as an expense when incurred, unless those costs are explicitly chargeable to the customer regardless of whether the contract is obtained.

The Company applies the practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the Company otherwise would have recognized is one year or less.

• 2) Assets recognized from costs to fulfill contracts with customers

If the costs incurred in fulfilling a contract with a customer are not within the scope of another Standard (e.g., IAS 2 Inventories , IAS 16 Property, Plant and Equipment or IAS 38 Intangible Assets ), the Company recognizes an asset from the costs incurred to fulfil a contract only if those costs meet all of the following criteria:

• the costs relate directly to a contract or to an anticipated contract that the Company can specifically identify;

• the costs generate or enhance resources of the Company that will be used in satisfying (or in continuing to satisfy) performance obligations in the future; and

• the costs are expected to be recovered.

General and administrative costs, costs of wasted materials, labor or other resources to fulfil the contract that were not reflected in the price of the contract, costs that relate to satisfied performance obligations (or partially satisfied performance obligations), and costs for which the Company cannot distinguish whether the costs relate to unsatisfied performance obligations or to satisfied performance obligations (or partially satisfied performance obligations) are recognized as expenses when incurred.

• (q) Government grant

A government grant is recognized in profit or loss only when there is reasonable assurance that the Company will comply with the conditions associated with the grant and that the grant will be received.

A government grant is recognized in profit or loss in the period in which it becomes receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Company without future related costs.

Government grant is recorded in other operating income and expenses, net.

(Continued)

25

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(r) Employee benefits

(i) Defined contribution plans

Obligations for contributions to defined contribution pension plans are expensed during the year in which employees render services.

(ii) Defined benefit plans

The Company’s net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets. The discount rate for calculating the present value of the defined benefit obligation refers to the interest rate of high-quality government bonds that are denominated in the currency in which the benefits will be paid and that have terms to maturity approximating the terms of the related pension obligation. The defined benefit obligation is calculated annually by qualified actuaries using the projected unit credit method.

When the benefits of a plan are improved, the expenses related to the increased obligations resulting from the services rendered by employees in the past years are recognized in profit or loss immediately.

The remeasurements of the net defined benefit liability (asset) comprise (i) actuarial gains and losses; (ii) return on plan assets, excluding amounts included in net interest on the net defined benefit liability (asset); and (iii) any change in the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability (asset). The remeasurements of the net defined benefit liability (asset) are recognized in other comprehensive income and reflected in other equity.

The Company recognizes gains or losses on the curtailment or settlement of a defined benefit plan when the curtailment or settlement occurs. The gain or loss on curtailment or settlement comprises any resulting change in the fair value of plan assets and any change in the present value of the defined benefit obligation.

(iii) Short-term employee benefits

Short-term employee benefit obligations are measured on an undiscounted basis and are expensed during the period in which employees render services. A liability is recognized for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Company has a present legal or constructive obligation to make such payments as a result of past service provided by the employees, and the obligation can be estimated reliably.

(s) Share-based payment

The grant-date fair value of equity-settled share-based payment arrangements granted to employees is generally recognized as an expense, with a corresponding increase in equity, over the vesting period of the awards. The amount recognized as an expense is adjusted to reflect the number of awards for which the related service and non-market performance conditions are expected to be met, and the amount ultimately recognized is based on the number of awards that meet the related service and non-market performance conditions at the vesting date.

(Continued)

26

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

For share-based payment awards with non-vesting conditions, the grant-date fair value of the sharebased payment is measured to reflect such conditions and there is no true-up for differences between expected and actual outcomes.

The grant date of options for employees to subscribe new shares for a cash injection is the date when the Board of Directors approves the exercise price and the shares to which employees can subscribe.

(t) Income taxes

Income taxes comprise current taxes and deferred taxes. Current and deferred taxes are recognized in profit or loss unless they relate to business combinations or items recognized directly in equity or other comprehensive income.

Current taxes comprise the expected tax payables or receivables on the taxable profits (losses) for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payables or receivables are the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date.

Deferred taxes arise due to temporary differences between the carrying amounts of assets and liabilities at the reporting date and their respective tax bases. Deferred taxes are recognized except for the following:

• (i) Temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and at the time of the transaction (1) affects neither accounting nor taxable profits (losses) and (2) does not give rise to equal taxable and deductible temporary differences;

• (ii) Temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that the Company is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and

• (iii) Taxable temporary differences arising on the initial recognition of goodwill.

Deferred tax assets are recognized for unused tax losses, tax credits, and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and reduced to the extent that it is no longer probable that the related tax benefit will be realized; such reductions are reversed when the probability of future taxable profits improves.

Deferred taxes are measured at tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date, and reflect uncertainty related to income taxes, if any.

Deferred tax assets and liabilities are offset if the following criteria are met:

• (i) the Company has a legally enforceable right to set off current tax assets against current tax liabilities; and

(Continued)

27

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

• (ii) the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on either:

• 1) the same taxable entity; or

• 2) different taxable entities which intend to settle current tax assets and liabilities on a net basis, or to realize the assets and liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

(u) Earnings per share (“EPS”)

The basic and diluted EPS attributable to stockholders of the Company are disclosed in the financial statements. Basic EPS is calculated by dividing net income attributable to stockholders of the Company by the weighted-average number of common shares outstanding during the year. In calculating diluted EPS, the net income attributable to stockholders of the Company and weightedaverage number of common shares outstanding during the year are adjusted for the effects of dilutive potential common shares. The Company’s dilutive potential common shares include profit sharing for employees to be settled in the form of common stock.

(v) Operating segments

The Company discloses the operating segment information in the consolidated financial statements. Therefore, the Company does not disclose the operating segment information in the parent-companyonly financial statements.

5. Critical accounting judgments and key sources of estimation and assumption uncertainty

The preparation of the parent-company-only financial statements in conformity with the Regulations requires management to make judgments, estimates and assumptions 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. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised and in the future periods affected.

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year is included as follows:

• (a) Revenue recognition (accrual of sales allowance)

The Company records a refund liability for estimated future allowances in the same period the related revenue is recognized. Refund liability for estimated sales allowances is generally made and adjusted based on historical experience, channel inventory, market and economic conditions, and any other factors that would significantly affect the allowance. The adequacy of estimations is reviewed periodically. The fierce market competition and rapid evolution of technology could result in significant adjustments to the accruals made.

(Continued)

28

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(b) Valuation of inventory

Inventories are measured at the lower of cost or net realizable value. The Company uses judgment and estimates to determine the net realizable value of inventory at each reporting date.

The Company estimates the net realizable value of inventory, taking obsolescence and unmarketable items into account at the reporting date, and then writes down the cost of inventories to net realizable value. The net realizable value of the inventory is mainly determined based on assumptions of future demand within a time horizon, which could result in significant adjustments. Refer to note 6(e) for further description of inventory write-downs.

(c) Impairment of goodwill from investments in subsidiaries

The assessment of impairment of goodwill requires the Company to make subjective judgments to identify cash-generating units, allocate the goodwill to relevant cash-generating units, and estimate the recoverable amount of relevant cash-generating units. Any changes in these estimates based on changed economic conditions or business strategies could result in significant adjustments in future years. Refer to note 6(h) for further description of the impairment of goodwill.

6. Significant account disclosures

(a) Cash and cash equivalents

Cash on hand Bank deposits Time deposits with original maturities less than three months	December 31, 2023 $ 614 6,782,871 11,579,703 $ 18,363,188	December 31, 2022
		614 5,185,171 11,239,128
		16,424,913

As of December 31, 2023 and 2022, the time deposits with original maturities between three months and one year amounted to $1,239,900 and $10,500, respectively, which were classified as other － financial assets current.

• －

• (b) Financial instruments measured at fair value through profit or loss current

Financial assets mandatorily measured at fair value through profit or loss: Derivative instruments not used for hedging Foreign currency forward contracts Non-derivative financial assets Stocks listed on foreign markets Financial liabilities held for trading－current: Derivatives－Foreign currency forward contracts	December 31, 2023 $ 58,595 817 $ 59,412 $ (490,931)	December 31, 2022 123,004 2,661 125,665 (714,504)

(Continued)

29

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

Please refer to note 6(y) for the amounts recognized in profit or loss arising from remeasurement at fair value.

The Company entered into derivative contracts to manage foreign currency exchange risk arising from operating activities. At each reporting date, the outstanding foreign currency forward contracts that did not conform to the criteria for hedge accounting consisted of the following (the contract amount was presented in USD):

• (i) Foreign currency forward contracts

	December 31, 2023
Contract amount (in thousands) USD 538,000 USD 233,410 USD 1,428 USD 59,708 USD 56,499 USD 152,018	Currency Maturity period USD / NTD 2024/01 EUR / USD 2024/01~2024/05 NZD / USD 2024/01~2024/02 AUD / USD 2024/01~2024/05 USD / JPY 2024/01~2024/12 USD / INR 2024/01~2024/10 December 31, 2022
Contract amount (in thousands) USD 662,000 USD 298,162 USD 5,757 USD 55,082 USD 43,386 USD 135,967	Currency Maturity period USD / NTD 2023/01 EUR / USD 2023/01~2023/06 NZD / USD 2023/01~2023/03 AUD / USD 2023/01~2023/04 USD / JPY 2023/01~2023/10 USD / INR 2023/01~2023/07

(c) Notes and accounts receivable, net (measured at amortized cost)

Notes receivable Accounts receivable Less: loss allowance Notes and accounts receivable from related parties (note 7(b))	December 31, 2023 $ 14,925 4,023,554 (1,461) 4,037,018 13,018,418 $ 17,055,436	December 31, 2022 5,250 3,566,480 (1,755) 3,569,975 12,743,460 16,313,435

(Continued)

30

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

The Company applies the simplified approach to provide for its expected credit losses, i.e. the use of lifetime expected loss provision for all receivables. Forward looking information is taken into consideration as well. Analysis of expected credit losses on notes and accounts receivable was as follows:

Current Past due 1-30 days Past due 31-60 days Past due 61-90 days Past due 91-180 days Past due 181 days or over Current Past due 1-30 days Past due 31-60 days Past due 61-90 days Past due 91-180 days Past due 181 days or over	December 31, 2023	December 31, 2023	Loss allowance (1,461) - - - - -
	Gross carrying amount Weighted- average loss rate $ 3,198,023 0.05% 653,782 0.00% 182,985 0.00% 1,094 0.00% 2,096 0.00% 499 0.00% $ 4,038,479 December 31, 2022
			(1,461)
			Loss allowance (1,460) - - (1) (9) (285)
		Weighted- average loss rate 0.05% 0.00% 0.00% 0.03% 0.19% 81.90%
			(1,755)

As of December 31, 2023 and 2022, no expected credit losses was provided for abovementioned notes and accounts receivable from related parties after management's assessment. The analysis was as follows:

Current Past due 1-30 days Past due 31-60 days Past due 61-90 days Past due 91-180 days Past due 181 days or over	December 31, 2023 $ 9,940,433 2,236,952 313,628 84,674 287,492 155,239 $ 13,018,418	December 31, 2022
		8,606,720 2,061,103 1,201,646 466,288 276,177 131,526
		12,743,460

(Continued)

31

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

Movements of the allowance for notes and accounts receivable were as follows:

Balance at January 1 Impairment loss recognized (reversed) Write-off Balanceat December 31 Other receivables, net Other receivables from related parties (note 7(b)) Reimbursement of advertising expense Purchase discount Interest receivable Others	2023 2022 $ 1,755 1,798 (294) 177 - (220) $ 1,461 1,755 December 31, 2023 December 31, 2022 $ 1,217,952 1,049,499 135,075 62,880 115,100 57,772 53,462 8,222 107,883 23,740 $ 1,629,472 1,202,113

(d) Other receivables, net

As of December 31, 2023 and 2022, no loss allowance was provided for other receivables after management’s assessment.

(e) Inventories

Raw materials Finished goods and merchandise Spare parts Inventories in transit	December 31, 2023 $ 12,698,362 740,248 50,213 292,150 $ 13,780,973	December 31, 2022
		11,456,106 709,763 59,573 290,504
		12,515,946

For the years ended December 31, 2023 and 2022, the amounts of inventories recognized as cost of revenues were $132,395,422 and $147,697,860, respectively, of which $(1,299,501) and $894,308, respectively, were the write-down of inventories (reversal of write-downs). The write-downs arose from the write-down of inventories to net realizable value. The reversal of write-downs arose from the increase in the net realizable value or the sale of inventories, and the circumstance of net realizable value of inventories being lower than the cost of inventories no longer existed.

(Continued)

32

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

• －

• (f) Financial assets measured at fair value through other comprehensive income non-current:

Equity investments measured at fair value through other comprehensive income: Domestic listed stock Domestic unlisted stock	December 31, 2023 $ 9,568,286 544,368 $ 10,112,654	December 31, 2022
		6,143,288 322,456
		6,465,744

The Company designated the investments shown above financial assets measured as at fair value through other comprehensive income because these equity instruments are held for long-term strategic purposes and not for trading. Certain financial assets measured at FVOCI were disposed of in 2023, the related gain accumulated in other comprehensive income of $3,212,026 has been reclassified from other equity to retained earnings, accordingly.

• (g) Financial assets measured at amortized cost

Fixed Rate Corporate Bonds Current Non-current	December 31, 2023 $ 4,672,781 $ 461,025 4,211,756 $ 4,672,781	December 31, 2022 797,782
		- 797,782
		797,782

The Company evaluated these financial assets being hold-to-maturity in order to collect the contractual cash flows, which are solely payments for principal and interest on principal amount outstanding. Therefore, such financial assets were classified as financial assets measured at amortized cost.

• (h) Investments accounted for using the equity method

A summary of the Company’s investments accounted for using the equity method is as follows:

Subsidiaries Associates Joint ventures	December 31, 2023 $ 77,680,491 55,786 300,081 $ 78,036,358	December 31, 2022
		76,927,756 59,933 53,733
		77,041,422

(i) For the information of subsidiaries, please refer to the consolidated financial statements for the year ended December 31, 2023.

• (ii) The Company has performed an impairment test for Goodwill from investment in subsidiaries, and there was no impairment as a result of the test. Please refer to the consolidated financial statements for the year ended December 31, 2023 for the description of the impairment of goodwill.

(Continued)

33

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

(iii) Associates and joint venture

Name of Associates and Joint Venture Associates Joint Venture: Smart Frequency Technology Inc. (“SFT”, note (i) and (ii)) Haoru Electric Co., Ltd (“HRC”, note (ii))	December 31, 2023 Percentage of ownership Carrying amount - $ 55,786 - - 60.00 300,081 $ 355,867	December 31, 2022	December 31, 2022
	Percentage of ownership - - 60.00	Percentage of ownership - 55.00 -	Carrying amount
			59,933 53,733 -
			113,666

Note (i): On December 27, 2023, the Company acquired the remaining shares of SFT from another joint venture party and SFT has since become a wholly-owned subsidiary of the Company.

Note (ii): Based on the joint venture agreement with a third party, the Company and the other party have joint control over it. Accordingly, this investment was accounted for using the equity method.

The Company’s share of net loss of the associates: Net loss Other comprehensive income Total comprehensive loss The Company’s share of net loss of the joint venture: Net loss Other comprehensive income Total comprehensive loss	2023 $ (4,147) - $ (4,147) 2023 $ (8,730) - $ (8,730)	2022 (97) - (97) 2022 (17,868) - (17,868)

(Continued)

34

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(i) Property, plant and equipment

The movements of cost, and accumulated depreciation and impairment loss of the property, plant and equipment were as follows:

Cost or deemed cost: Balance at January 1, 2023 Additions Disposals Reclassifications Balance at December 31, 2023 Balance at January 1, 2022 Additions Disposals Reclassifications Balance at December 31, 2022 Accumulated depreciation and impairment loss: Balance at January 1, 2023 Depreciation Disposals Reclassifications Balance at December 31, 2023 Balance at January 1, 2022 Depreciation Disposals Reclassifications Balance at December 31, 2022 Carrying amounts: Balance at December 31, 2023 Balance at December 31, 2022	Land $ 1,427,739 - - - $ 1,427,739 $ 1,427,739 - - - $ 1,427,739 $ 278,877 - - - $ 278,877 $ 278,877 - - - $ 278,877 $ 1,148,862 $ 1,148,862	Buildings 2,555,537 27,919 (40,922) (2,944) 2,539,590 2,541,949 29,368 (6,470) (9,310) 2,555,537 2,022,305 26,932 (40,838) (1,340) 2,007,059 2,007,506 22,892 (6,470) (1,623) 2,022,305 532,531 533,232	Computer and communication equipment 541,439 77,836 (57,374) 3,739 565,640 534,025 17,589 (43,017) 32,842 541,439 490,880 25,731 (57,374) (133) 459,104 492,511 18,781 (43,017) 22,605 490,880 106,536 50,559	Other equipment 268,222 2,613 (18,112) - 252,723 275,998 12,533 (20,309) - 268,222 246,366 6,463 (17,987) - 234,842 260,639 6,036 (20,309) - 246,366 17,881 21,856	Total 4,792,937 108,368 (116,408) 795 4,785,692 4,779,711 59,490 (69,796) 23,532 4,792,937 3,038,428 59,126 (116,199) (1,473) 2,979,882 3,039,533 47,709 (69,796) 20,982 3,038,428 1,805,810 1,754,509

(Continued)

35

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

(j) Right-of-use assets

Buildings Cost: Balance at January 1, 2023 $ 207,464 Additions 37,604 Disposals (62,920) Balance at December 31, 2023 $ 182,148 Balance at January 1, 2022 $ 174,928 Additions 127,367 Disposals (94,831) Balance at December 31, 2022 $ 207,464 Accumulated depreciation: Balance at January 1, 2023 $ 88,709 Depreciation 79,515 Disposals (62,920) Balance at December 31, 2023 $ 105,304 Balance at January 1, 2022 $ 101,670 Depreciation 81,870 Disposals (94,831) Balance at December 31, 2022 $ 88,709 Carrying amount: Balance at December 31, 2023 $ 76,844 Balance at December 31, 2022 $ 118,755	Other equipment 6,117 4,365 (6,117) 4,365 6,117 - - 6,117 4,658 2,035 (6,117) 576 2,619 2,039 - 4,658 3,789 1,459	Total 213,581 41,969 (69,037) 186,513 181,045 127,367 (94,831) 213,581 93,367 81,550 (69,037) 105,880 104,289 83,909 (94,831) 93,367 80,633 120,214

(Continued)

36

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(k) Investment property Cost or deemed cost: Balance at January 1, 2023 Additions Reclassifications Balance at December 31, 2023 Balance at January 1, 2022 Additions Reclassifications Balance at December 31, 2022 Accumulated depreciation and impairment loss: Balance at January 1, 2023 Depreciation Reclassifications Balance at December 31, 2023 Balance at January 1, 2022 Depreciation Reclassifications Balance at December 31, 2022 Carrying amounts: Balance at December 31, 2023 Balance at December 31, 2022 Fair value: Balance at December 31, 2023 Balance at December 31, 2022	Land $ 840,869 - - $ 840,869 $ 840,869 - - $ 840,869 $ 274,710 - - $ 274,710 $ 274,710 - - $ 274,710 $ 566,159 $ 566,159	Buildings Total 2,188,895 3,029,764 11,728 11,728 2,944 2,944 2,203,567 3,044,436 2,162,336 3,003,205 17,249 17,249 9,310 9,310 2,188,895 3,029,764 1,930,736 2,205,446 9,908 9,908 1,340 1,340 1,941,984 2,216,694 1,916,714 2,191,424 12,399 12,399 1,623 1,623 1,930,736 2,205,446 261,583 827,742 258,159 824,318 $ 1,292,238 $ 1,244,195	Total
			3,029,764 11,728 2,944
			3,044,436
			3,003,205 17,249 9,310
			3,029,764
			2,205,446 9,908 1,340
			2,216,694
			2,191,424 12,399 1,623
			2,205,446
			827,742
			824,318

The fair value of the investment property is determined by referring to the market price of similar real estate transaction or the value in use of the investment property. The value in use is the present value of the future cash flows from continuous lease activities. On December 31, 2023 and 2022, the estimated discount rate used for calculating the present value of the future cash flows was 6.57% and 6.83%, respectively.

(Continued)

37

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

(l) Intangible assets

The movements of costs, and accumulated amortization and impairment loss of intangible assets were as follows:

Net balance at January 1, 2023: Cost $ Accumulated amortization and impairment loss Net balance at January 1, 2023 Additions Amortization Net balance at December 31, 2023 $ Net balance at December 31, 2023: Cost $ Accumulated amortization and impairment loss $ Net balance at January 1, 2022: Cost $ Accumulated amortization and impairment loss Net balance at January 1, 2022 Additions Amortization Net balance at December 31, 2022 $ Net balance at December 31, 2022: Cost $ Accumulated amortization and impairment loss $	Goodwill 166,604 - 166,604 - - 166,604 166,604 - 166,604 166,604 - 166,604 - - 166,604 166,604 - 166,604	Trademarks and trade names 7,489,298 (7,489,298) - - - - 7,489,298 (7,489,298) - 7,489,298 (7,489,298) - - - - 7,489,298 (7,489,298) -	Patent 1,344,680 (1,344,052) 628 - (628) - 1,344,680 (1,344,680) - 1,344,680 (1,342,995) 1,685 - (1,057) 628 1,344,680 (1,344,052) 628	Software 320,325 (307,880) 12,445 28,544 (27,889) 13,100 338,489 (325,389) 13,100 669,019 (661,494) 7,525 25,960 (21,040) 12,445 320,325 (307,880) 12,445	Total 9,320,907 (9,141,230)
					179,677
					28,544 (28,517)
					179,704
					9,339,071 (9,159,367)
					179,704
					9,669,601 (9,493,787)
					175,814
					25,960 (22,097)
					179,677
					9,320,907 (9,141,230)
					179,677

The amortization of intangible assets were included in operating expenses of the parentcompany-only statements of comprehensive income.

(Continued)

38

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(m) Long-term debt

Secured loans Less: current portion of long-term debt Unused credit facilities Interest rates	December 31, 2023 $ 1,500,000 - $ 1,500,000 $ 4,773,500 1.70%	December 31, 2022
		- -
		-
		4,770,800
		-

The Company pledged the time deposits of its subsidiaries as collateral to secure the bank loans.

There were no additions and repayments made for the year ended December 31, 2022.

• (n) Bonds payable

Unsecured bonds payable	December 31, 2023 $ 10,000,000	December 31, 2022
		10,000,000

On April 27, 2021, the Company issued $5,000,000 of unsecured corporate bonds at par value with 5-year term repayable on maturity. The bonds bear annual coupon rate of 0.76% and interests are payable annually at coupon rate from the issuance date. On August 26, 2021, the Company issued $5,000,000 of unsecured corporate bonds at par value with 5-year term repayable in two equal installments on August 26, 2025 and on maturity. The bonds bear annual coupon rate of 0.62% and interests are payable annually at coupon rate from the issuance date.

(o) Lease liabilities

• (i) The carrying amounts of lease liabilities were as follows:

Current Non-current	December 31, 2023 $ 54,885 $ 27,436	December 31, 2022
		63,209
		57,923

Please refer to note 6(aa) for maturity analysis.

• (ii) The amounts recognized in profit or loss were as follows:

Interest on lease liabilities Expenses relating to short-term leases	2023 $ 1,580 $ -	2022
		1,469
		9

(Continued)

39

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(iii) The amounts recognized in the statement of cash flows for the Company were as follows:

Total cash outflow for leases	2023 $ 82,360	2022
		84,955

(iv) Major terms of leases

The Company leases buildings, vehicles, office equipment, and miscellaneous equipment with lease terms ranged from 1 to 5 years. As certain leases of office and miscellaneous equipment meet the definition of short-term lease or lease of low-value assets, the Company has elected to apply exemption and not to recognize right-of-use assets and lease liabilities.

－ (p) Provisions current

Balance at January 1, 2023 Additions and reversals Amount utilized Effect of exchange rate changes Balance at December 31, 2023 Balance at January 1, 2022 Additions Amount utilized Effect of exchange rate changes Balance at December 31, 2022	Warranties $ 731,443 295,936 (295,307) 472 $ 732,544 $ 579,275 440,639 (296,245) 7,774 $ 731,443	Litigation 214,956 (225,953) - 10,997 - 193,830 - - 21,126 214,956	Environmental protection 64,867 57,172 (57,339) - 64,700 61,620 59,024 (55,777) - 64,867	Total 1,011,266 127,155 (352,646) 11,469 797,244 834,725 499,663 (352,022) 28,900 1,011,266

(i) Warranties

The provision for warranties is made based on the number of units sold currently under warranty, historical rates of warranty claim on those units, and cost per claim to satisfy the warranty obligation. The Company reviews the estimation basis on an ongoing basis and revises it when appropriate.

(ii) Litigation

Litigation provisions are recorded for pending litigation when it is determined that an unfavorable outcome is probable and the amount of loss can be reasonably estimated.

• (iii) Environmental protection

An environmental protection provision is made when products are sold and is estimated based on historical experience.

(Continued)

40

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(q) Operating lease

The Company leases its investment property and a part of property, plant and equipment to others. The Company has classified these leases as operating leases as it does not transfer substantially all the risks and rewards incidental to ownership of the assets to lessees. Please refer to note 6(k) for the information of investment property and note 6(i) for the information of property, plant and equipment.

A maturity analysis of lease payments, showing the undiscounted lease payments to be received after the reporting date, is as follows:

Less than 1 year 1 year to 2 years 2 years to 3 years 3 years to 4 years 4 years to 5 years Over 5 years Total undiscounted lease payments	December 31, 2023 $ 98,976 81,325 62,573 62,573 62,573 203,351 $ 571,371	December 31, 2022
		83,653 63,050 62,653 62,573 62,573 265,924
		600,426

In 2023 and 2022, the rental income from investment property amounted to $65,075 and $65,563, respectively, were recognized and included in other operating income and loss. Related repair and maintenance expenses recognized were as follows:

Arising from investment property that generated rental income during the period $ Arising from investment property that did not generate rental income during the period $	2023 26,485 6,011 32,496	2022
		25,951 7,816
		33,767

(r) Employee benefits

(i) Defined benefit plans

The reconciliation between the present value of defined benefit obligations and the net defined benefit liabilities for defined benefit plans was as follows:

Present value of benefit obligations Fair value of plan assets Net defined benefit liabilities (reported under other non- current liabilities)	December 31, 2023 $ 776,435 (172,198) $ 604,237	December 31, 2022 862,598 (252,072) 610,526

(Continued)

41

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

The Company makes defined benefit plan contributions to the pension fund account at Bank of Taiwan that provides pension benefits for employees upon retirement. The plans (covered by the Labor Standards Law) entitle a retired employee to receive a payment based on years of service and average salary for the six months prior to the employee’s retirement.

1) Composition of plan assets

The pension fund (the “Fund”) contributed by the Company is managed and administered by the Bureau of Labor Funds of the Ministry of Labor (the Bureau of Labor Funds). According to the “Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund” , with regard to the utilization of the Fund, minimum earnings shall be no less than the earnings attainable from two-year time deposits with interest rates offered by local banks. The Company also established pension funds in accordance with the “ Regulations Governing the Management, Investment, and Distribution of the Employees’ Retirement Fund Established by a Profit-seeking Enterprise” , which are funded by time deposits and bank deposits deposited in the designated financial institutions. The administration of pension funds is separate from the Company, and the principal and interest from such funds shall not be used in any form except for the payment of pension and severance to employees.

As of December 31, 2023 and 2022, the balances of aforementioned pension funds were $172,198 and $252,072, respectively. For information on the domestic labor pension fund assets (including the asset portfolio and yield of the fund), please refer to the website of the Bureau of Labor Funds.

• 2) Movements in present value of the defined benefit obligations

Defined benefit obligations at January 1 Current service costs Interest expense Remeasurement on the net defined benefit liabilities: Actuarial (gain) loss arising from experience adjustments Actuarial loss (gain) arising from changes in financial assumption Benefits paid by the company and the plan Liabilities transferred due to the Group’s employee shift Defined benefit obligations at December 31	2023 $ 862,598 7,430 14,936 (13,169) 9,017 (104,158) (219) $ 776,435	2022 945,444 9,005 5,869 23,142 (99,072) (11,487) (10,303) 862,598

(Continued)

42

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

3) Movements in fair value of plan assets

Fair value of plan assets at January 1 Interest income Remeasurement on the net defined benefit liabilities Return on plan assets (excluding amounts included in net interest expense) Benefits paid by the plan Contributions by the employer Loss on curtailment Fair value of plan assets at December 31	2023 $ 252,072 2,773 356 (103,187) 26,829 (6,645) $ 172,198	2022 226,570 914 13,348 (11,487) 27,752 (5,025) 252,072

4) Changes in the effect of the asset ceiling

In 2023 and 2022, there was no effect of the asset ceiling.

• 5) Expenses recognized in profit or loss

Current service costs Net interest expense Loss on curtailment Classified under operating expense	2023 $ 7,430 12,163 6,645 $ 26,238 $ 26,238	2022 9,005 4,955 5,025 18,985 18,985

6) Actuarial assumptions

The principal assumptions of the actuarial valuation were as follows:

Discount rate Future salary increases rate	December 31, 2023 December 31, 2022 % 1.625 % 1.750 % 4.000 % 4.000

The Company expects to make contribution of $26,498 to the defined benefit plans in the year following December 31, 2023. The weighted average duration of the defined benefit plans is 11.55 years.

(Continued)

43

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

7) Sensitivity analysis

The following table summarizes the impact of a change in the assumptions on the present value of the defined benefit obligation on December 31, 2023 and 2022.

Discount rate Future salary increasing rate	December	December	31, 2023		December 31, 2022	December 31, 2022
	0.25% Increase		0.25% Decrease		0.25% Increase	0.25% Decrease ) 20,774 (19,317)
	$ (17,866)		18,459		(20,117
	$ 17,608		(17,146	)	19,840

The above sensitivity analysis considers the change in one assumption at a time, leaving other assumptions unchanged. This approach shows the isolated effect of changing one individual assumption but does not take into account that some assumptions are interrelated. The method used to carry out the sensitivity analysis is consistent with the calculation of the net defined benefit liabilities recognized in the balance sheets. The method and assumptions used to carry out the sensitivity analysis is the same as in the prior year.

(ii) Defined contribution plans

The Company contributes monthly an amount equal to 6% of each employee’s monthly wages to the employee’ s individual pension fund account at the Bureau of Labor Insurance in accordance with the provisions of the Labor Pension Act. Under this defined contribution plan, the Company has no legal or constructive obligation to pay additional amounts after contributing a fixed amount to the Bureau of Labor Insurance.

For the years ended December 31, 2023 and 2022, the Company recognized pension expenses of $86,671 and $85,098, respectively, which had been contributed to the Bureau of Labor Insurance, in relation to the defined contribution plans.

(s) Income taxes

(i) The components of income tax expense were as follows:

Current income tax expense Current period Adjustments for prior years Deferred tax expense Origination and reversal of temporary differences Change in unrecognized deductible temporary differences Income tax expense	2023 $ 653,465 5,684 659,149 1,107,712 (410,233) 697,479 $ 1,356,628	2022 1,060,710 (213) 1,060,497 60,066 235,599 295,665 1,356,162

(Continued)

44

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

The components of income tax expense recognized in other comprehensive income were as follows:

Items that will not be reclassified subsequently to profit or loss: Remeasurement of defined benefit plans	2023 $ 902	2022
		17,856

Reconciliation between the expected income tax expense calculated based on the Company’s statutory tax rate and the actual income tax expense reported in the statements of comprehensive income was as follows:

Income before taxes Income tax using the Company’s statutory tax rate Adjustments for prior-year income tax expense Change in unrecognized temporary differences Undistributed earnings additional tax Additional income tax under the Alternative Minimum Tax Act Others	2023 $ 6,288,572 $ 1,257,714 5,684 (410,233) 56,974 197,400 249,089 $ 1,356,628	2022 6,359,850 1,271,970 (213) 235,599 1,187 - (152,381) 1,356,162

• (ii) Deferred income tax assets and liabilities

• 1) Unrecognized deferred income tax assets

Loss associated with investments in subsidiaries Deductible temporary differences	December 31, 2023 $ 1,919,925 - $ 1,919,925	December 31, 2022
		2,069,328 816,471
		2,885,799

The above deferred income tax assets were not recognized as management believed that it is not probable that future taxable profits will be available against which the Company can utilize the benefits therefrom.

2) Unrecognized deferred income tax liabilities

The Company is able to control the timing of the reversal of the temporary differences associated with investments in subsidiaries as of December 31, 2023 and 2022. As management believed that it is probable that the temporary differences will not reverse in the foreseeable future, such temporary differences were not recognized as deferred income tax liabilities. The related amounts were as follows:

Profits associated with investments in subsidiaries	December 31, 2023 $ 329,076	December 31, 2022
		884,717
		(Continued)

45

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

3) Recognized deferred income tax assets and liabilities

Changes in the amount of deferred income tax assets and liabilities were as follows:

Deferred income tax assets:

Remeasurements of defined benefit plans Balance at January 1, 2023 $ 85,460 Recognized in profit or loss - Recognized in other comprehensive loss (902) Balance at December 31, 2023 $ 84,558 Balance at January 1, 2022 $ 103,316 Recognized in other comprehensive loss (17,856) Balance at December 31, 2022 $ 85,460	Accrued expenses and costs 2,997,334 (148,463) - 2,848,871 2,997,334 - 2,997,334	Others - 148,463 - 148,463 - - -	Total
			3,082,794 - (902
			3,081,892
			3,100,650 (17,856
			3,082,794

Deferred income tax liabilities:

Balance at January 1, 2023 Recognized in profit or loss Balance at December 31, 2023 Balance at January 1, 2022 Recognized in profit or loss Balance at December 31, 2022	Income from investments accounted for using the equity method $ 4,523,461 699,879 $ 5,223,340 $ 3,756,686 766,775 $ 4,523,461	Others 6,598 (2,400) 4,198 477,708 (471,110) 6,598	Total
			4,530,059 697,479
			5,227,538
			4,234,394 295,665
			4,530,059

(iii) No income tax was recognized directly in equity in 2023 and 2022.

(iv) The Company’s income tax returns for the years through 2021 were examined and approved by the R.O.C. income tax authorities.

(t) Capital and other equity

• (i) Common stock

As of December 31, 2023 and 2022, the Company had issued 5,558 thousand units and 5,664 thousand units, respectively, of global depository receipts (GDRs). The GDRs were listed on the London Stock Exchange, and each GDR represents five common shares.

As of December 31, 2023 and 2022, the Company’ s authorized shares of common stock consisted of 4,000,000 thousand shares, of which 3,047,854 thousand shares were issued. The par value of the Company’s common stock is $10 per share. All issued shares were paid up upon issuance.

(Continued)

46

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

Certain shares of common stock were not outstanding as they were repurchased by the Company or held by the Company’ s subsidiaries. The movements in outstanding shares of common stock were as follows (in thousands of shares):

common stock were as follows (in thousands of shares):
Balance at January 1 Disposal of the Company’s share by subsidiaries recognized as treasury share transactions Balance at December 31 (ii) Capital surplus	2023 $ 3,001,108 5,100 $ 3,006,208	2022
		3,001,108 -
		3,001,108

Paid-in capital in excess of par value Surplus from mergers Surplus related to treasury stock transactions and cash dividend Difference between consideration and carrying amount of subsidiaries acquired or disposed Employee share options Surplus from equity-method investments	December 31, 2023 $ 10,095,202 15,797,245 872,507 240,108 90,000 710,114 $ 27,805,176	December 31, 2022
		10,094,950 15,797,245 729,273 259,646 90,000 824,769
		27,795,883

Pursuant to the Company Act, any realized capital surplus is initially used to cover accumulated deficit, and the balance, if any, could be transferred to common stock as stock dividends or distributed by cash based on the original shareholding ratio. Realized capital surplus includes the premium derived from the issuance of shares of stock in excess of par value and donations received by the Company. In accordance with the “Regulations Governing the Offering and Issuance of Securities by Securities Issuers”, distribution of stock dividends from capital surplus in any one year shall not exceed 10% of paid-in capital.

(iii) Legal reserve, special reserve, surplus distribution and dividend policy

The Company’s Articles of Incorporation stipulate that at least 10% of annual net income, after deducting accumulated deficit, if any, must be retained as legal reserve until such retention equals the amount of paid-in capital. In addition, a special reserve shall be set aside in accordance with applicable laws and regulations. The remaining balance, together with the unappropriated earnings from the previous years, after retaining a certain portion of it for business considerations, can be distributed as dividends to stockholders. Except for the distribution of capital surplus and legal reserve in accordance with applicable laws and regulations, the Company cannot distribute any earnings when there are no retained earnings. The distributable dividends in whole or in part will be paid in cash by the Company after a resolution has been adopted by a majority vote at a meeting of the Board of Directors attended by two-thirds of the total number of directors; and in addition thereto a report of such distribution shall be submitted to the shareholders’ meeting.

(Continued)

47

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

Since the Company operates in an industry experiencing rapid change and development, earnings are distributed in consideration of the current year’s earnings, the overall economic environment, related laws and decrees, and the Company’ s long-term development and stability in its financial position. The Company has adopted a stable dividend policy, in which a cash dividend comprises at least 10% of the total dividend distribution.

Additionally, pursuant to the Company Act, if the Company has no accumulated deficit, it may, pursuant to a resolution approved by the stockholders, distribute its legal reserve by issuing new shares or distributing cash for the portion of legal reserve which exceeds 25% of the paid-in capital.

In accordance with the rulings issued by the FSC, a special reserve shall be retained at an amount equal to the proportionate share of the carrying value of the treasury stock held by subsidiaries in excess of the market value at the reporting date. The special reserve may be reversed when the market value recovers in subsequent periods.

In accordance with the rulings issued by the FSC, a special reserve equal to the total amount of items that are accounted for as deductions from stockholders’ equity shall be set aside from the after-tax net profit in the period, plus items other than the after-tax net profit in the period, that are included in the undistributed current-period earnings and undistributed prior-period earnings. This special reserve shall revert to retained earnings and be made available for distribution when the items that are accounted for as deductions from stockholders’ equity are reversed in subsequent periods.

On March 16, 2023, the Company’ s Board of Directors approved the distribution of cash dividends amounting to $4,571,781 ($1.5 per share, in New Taiwan Dollars), of which $70,119 was distributed to the subsidiaries holding the Company’s common shares. Additionally, on June 6, 2023, the Company’s shareholders approved an appropriation of legal reserve $495,986 and a reversal of special reserve of $84,251.

On March 16, 2022, the Company’ s Board of Directors approved the distribution of cash dividends amounting to $6,949,107 ($2.28 per share, in New Taiwan Dollars), of which $107,298 was distributed to the subsidiaries holding the Company’ s common shares. Additionally, on June 10, 2022, the Company’ s shareholders approved an appropriation of legal reserve and special reserve of $1,058,914 and $2,564,442, respectively.

On March 14, 2024, the Company’s Board of Directors had approved the distribution of cash dividends amounting to $4,876,566 ($1.6 per share, in New Taiwan Dollars), of which $66,634 was distributed to the subsidiaries holding the Company’s common shares.

Related information is available on the Market Observation Post System website of the Taiwan Stock Exchange.

(Continued)

48

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(iv) Treasury stock

As of December 31, 2023 and 2022, details of the GDRs (for the implementation of an overseas employee stock option plan) held by subsidiary CCI and ASCBVI and the Company’s common stock held by subsidiaries CCI (to maintain the Company’s shareholders’ equity), ASCBVI (to maintain the Company’ s shareholders’ equity), and AGT (resulting from the acquisition of AGT) were as follows (expressed in thousands of shares):

Common stock GDRs Common stock GDRs		December 31, 2023	December 31, 2023	December 31, 2023
		Number of shares		Market value
				898,944 1,226,316
				2,125,260
		Number of shares	Carrying amount $ 945,239 1,969,617 $ 2,914,856	Market value
		21,809 24,937 46,746		513,602 536,042
				1,049,644

According to the Securities and Exchange Act, treasury stock cannot be collateralized. In addition, treasury shares do not bear shareholder rights prior to being sold to third parties. Moreover, the number of treasury shares shall not exceed 10% of the number of common shares issued. The total amount of treasury stock shall not exceed the sum of retained earnings, paid-in capital in excess of par value, and other realized capital surplus.

• (v) Other equity items (net after tax)

• 1) Foreign currency translation differences:

Balance at January 1 Generated by the Company: Foreign exchange differences arising from translation of foreign operations Changes in ownership interests in subsidiaries Liquidation of subsidiaries Organizational restructuring under common control Balance at December 31	2023 $ (4,219,903) 421,565 (1,364) - - $ (3,799,702)	2022 (8,805,597) 4,595,828 (287) 1,855 (11,702) (4,219,903)

(Continued)

49

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

2) Unrealized gain (loss) from financial assets measured at fair value through other comprehensive income:

2023 Balance at January 1 $ (409,726) Generated by the Company: Change in fair value of financial assets measured at fair value through other comprehensive income 7,165,914 Share of other comprehensive income of subsidiaries 647,970 Disposal of financial assets measured at fair value through other comprehensive income by the Company (3,212,026) Disposal of financial assets measured at fair value through other comprehensive income by subsidiaries (21,652) Changes in ownership interests in subsidiaries (431) Balance at December 31 $ 4,170,049 3) Remeasurement of defined benefit plans: 2023 Balance at January 1 $ 320,376 Change in the period (generated by the Company) 3,606 Share of other comprehensive income of subsidiaries (29,419) Changes in ownership interests in subsidiaries (312) Reorganization under common control - Balance at December 31 $ 294,251

2022 746,183 (1,127,724) (77,205) - 43,825 5,195 (409,726) 2022 (228,210) 71,422 464,195 7,486 5,483 320,376

• (u) Earnings per share (“EPS”)

• (i) Basic earnings per share

The basic earnings per share were calculated as the earnings attributable to the shareholders of the Company divided by the weighted-average number of common shares outstanding as follows:

Net income attributable to the ordinary shareholders Weighted-average number of ordinary shares outstanding (in thousands) Basic earnings per share (in New Taiwan dollars)	2023 $ 4,931,944 3,001,145 $ 1.64	2022
		5,003,688
		3,001,108
		1.67

(Continued)

50

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(ii) Diluted earnings per share

Net income attributable to the ordinary shareholders Weighted-average number of ordinary shares outstanding (in thousands) Effect of dilutive potential common stock (in thousands): Effect of employee remuneration in stock Weighted-average shares of common stock outstanding (including effect of dilutive potential common stock) (in thousands) Diluted earnings per share (in New Taiwan dollars)	2023 $ 4,931,944 3,001,145 12,512 3,013,657 $ 1.64	2022
		5,003,688
		3,001,108 25,195
		3,026,303
		1.65

(v) Revenue from contracts with customers

(i) Disaggregation of revenue

Primary geographical markets: EMEA Pan America Asia Pacific Primary geographical markets: EMEA Pan America Asia Pacific		2023
	IT Hardware Products $ 43,300,512 36,703,770 45,482,737 $ 125,487,019	Others 5,987,870 7,519,753 11,998,268 25,505,891 2022	Total
			49,288,382 44,223,523 57,481,005
			150,992,910
		Others 7,278,735 6,834,723 12,042,302 26,155,760	Total
			62,294,082 39,538,582 67,452,100
			169,284,764

(Continued)

51

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(ii) Contract balances

Notes and accounts receivable (including receivables from related parties) Less: loss allowance Contract liabilities－current	December 31, 2023 $ 17,056,897 (1,461) $ 17,055,436 $ 10,855	December 31, 2022 16,315,190 (1,755) 16,313,435 8,809	January 1, 2022 43,856,087 (1,798) 43,854,289 9,512

Please refer to note 6(c) for details on notes and accounts receivable and related loss allowance.

The major changes in the balance of contract assets and liabilities were due to the timing difference between the satisfaction of performance obligation and the receipt of customer’s payment.

The amount of revenue recognized in 2023 and 2022 that was included in the contract liability balance at January 1, 2023 and 2022, was $7,652 and $5,173, respectively.

(w) Remuneration to employees and directors

The Company’s Articles of Incorporation require that annual earning shall first be offset against any deficit, then, a minimum of 4% shall be allocated as employee remuneration and a maximum of 0.8% be allocated as directors’ remuneration. Employees who are entitled to receive the abovementioned employee remuneration, in share or cash, include the employees of subsidiaries of the Company who meet certain specific requirements.

For the years ended December 31, 2023 and 2022, the Company accrued its remuneration to employees amounting to $470,000 and $475,000, respectively, and the remuneration for directors of $18,443 and $18,800, respectively. The said amounts, which were recognized as operating expenses, were calculated based on pre-tax net profit for each year before deducting the amount of the remuneration to employees and directors, multiplied by the proposed distribution ratio of remuneration to employees and directors.

Except that the remuneration to directors for 2023 resolved by the Company’s Board of Directors on March 14, 2024 was $4,000 and that for 2022 resolved by the Company’s Board of Directors on March 16, 2023 was $7,000, the aforementioned accrued remunerations to employees were the same as the amounts resolved by the Board of Directors, which were all paid in cash. The difference between accrual and actual payment, amounting to $14,443 and $11,800 for 2023 and 2022, respectively, is treated as change in accounting estimate and recognized in profit or loss in the following year.

Related information is available on the Market Observation Post System website of Taiwan Stock Exchange.

(Continued)

52

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

• (x) Other operating income and expenses – net

Government grants Rental income (y) Non-operating income and loss (i) Interest income Interest income from bank deposits Other interest income (ii) Other income Dividend income (iii) Other gains and losses Gain on disposal of equipment and intangible assets Gain on disposal of investments Foreign currency exchange gain (loss), net Gain on financial assets and liabilities measured at fair value through profit Loss on liquidation of subsidiaries Gain on bargain purchase in business combination Others (note 7(b)-(v)) (iv) Finance costs Interest expense from bank loans and bonds payable Interest expense on lease liabilities Others	2023 $ 166 130,349 $ 130,515 2023 $ 687,159 134,953 $ 822,112 2023 $ 400,382 2023 $ 418 3,967 693,060 833,533 - 2,216 41,156 $ 1,574,350 2023 $ 87,794 1,580 2,712 $ 92,086	2022 - 132,051 132,051 2022 48,388 26,233 74,621 2022 519,988 2022 670 - (3,091,050) 2,992,204 (2,301) - 41,030 (59,447) 2022 110,310 1,469 1,754 113,533

(Continued)

53

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

• (z) Financial instruments and fair value information

• (i) Categories of financial instruments

  • 1) Financial assets

Financial assets measured at fair value through profit or loss Financial assets measured at fair value through other comprehensive income Financial assets measured at amortized cost: Cash and cash equivalents Notes and accounts receivable and other receivables (including receivables from related parties) Financial assets measured at amortized cost – current and non-current Other financial assets – current and non-current 2) Financial liabilities Financial liabilities measured at fair value through profit or loss Financial liabilities measured at amortized cost: Accounts payable (including payables to related parties) Other payables (including payables to related parties) Long-term payables (including payables to related parties) Lease liabilities – current and non-current Long-term debt Bonds payable	December 31, 2023 $ 59,412 10,112,654 18,363,188 18,684,908 4,672,781 1,392,682 $ 53,285,625 December 31, 2023 $ 490,931 32,157,494 21,732,992 13,353 82,321 1,500,000 10,000,000 $ 65,977,091	December 31, 2022
		125,665 6,465,744 16,424,913 17,515,548 797,782 158,966
		41,488,618
		December 31, 2022
		714,504 21,857,688 27,572,382 13,134 121,132 - 10,000,000
		60,278,840

(Continued)

54

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

• (ii) Fair value information

• 1) Financial instruments not measured at fair value

The Company considers that the carrying amounts of financial assets and financial liabilities measured at amortized cost approximate their fair values.

• 2) Financial instruments measured at fair value

The following financial instruments are measured at fair value on a recurring basis.

The table below analyzes the financial instruments measured at fair value subsequent to initial recognition, grouped into Levels 1 to 3 based on the degree to which the fair value is observable. The different levels have been defined as follows:

• a) Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

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

• c) Level 3: inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

data (unobservable inputs).
Financial assets mandatorily measured at fair value through profit or loss: Foreign currency forward contracts Stock listed on foreign markets Financial assets measured at fair value through other comprehensive income: Domestic listed stock Unlisted stock Financial liabilities measured at fair value through profit or loss: Foreign currency forward contracts Financial instruments measured at amortized cost: Corporate bonds carrying fixed interest rates		December 31, 2023		Total 58,595 817
		Fair value
	Level 1 $ - 817 $ 817 $ 9,568,286 - $ 9,568,286 $ - $ 4,058,105	Level 2 58,595 - 58,595 - - - (490,931) 607,271	Level 3 - - - - 544,368 544,368 - -
				59,412
				9,568,286 544,368
				10,112,654
				(490,931)
				4,665,376

(Continued)

55

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

Financial assets mandatorily measured at fair value through profit or loss: Foreign currency forward contracts Stock listed on foreign markets Financial assets measured at fair value through other comprehensive income: Domestic listed stock Unlisted stock Financial liabilities measured at fair value through profit or loss: Foreign currency forward contracts Financial assets measured at amortized cost: Corporate bonds carrying fixed interest rates		December 31, 2022	December 31, 2022
		Fair value		Total 123,004 2,661
	Level 1 $ - 2,661 $ 2,661 $ 6,143,288 - $ 6,143,288 $ - $ 177,410	Level 2 123,004 - 123,004 - - - (714,504) 591,950	Level 3 - - - - 322,456 322,456 - -
				125,665
				6,143,288 322,456
				6,465,744
				(714,504)
				769,360

There were no transfers among fair value hierarchies for the years ended December 31, 2023 and 2022.

3) Movement in financial assets included in Level 3 fair value hierarchy

			Financial assets measured at fair	Financial assets measured at fair	Financial assets measured at fair	Financial assets measured at fair	Financial assets measured at fair
		value through other comprehensive
				income
				2023	2022
Balance at January 1	$			322,456		157,421
Additions				330,000		165,035
Recognized in other comprehensive loss				(108,088)		-
Balance at December 31	$			544,368		322,456
The abovementioned total gains or losses were included				in “unrealized gain (loss) from
financial assets measured at fair value through other comprehensive income”. The gains
or losses attributable to the financial assets held on	December 31, 2023				and	2022	were as
follows:
				2023		2022
Total gains or losses:
Recognized in other comprehensive income
(included in “unrealized gain (loss) from financial
assets measured at fair value through other
comprehensive income”)		$		(108,088)		-

The abovementioned total gains or losses were included in “unrealized gain (loss) from financial assets measured at fair value through other comprehensive income”. The gains or losses attributable to the financial assets held on December 31, 2023 and 2022 were as follows:

(Continued)

56

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

• 4) Valuation techniques and inputs used for financial instruments measured at fair value

• a) The fair values of financial assets with standard terms and conditions and traded on active markets are determined with reference to quoted market prices (e.g. listed stocks).

• b) The fair value of derivative financial instruments is determined using a valuation technique, with estimates and assumptions consistent with those used by market participants that are readily available to the Company. The fair value of foreign currency forward contracts is computed individually by each contract using the valuation technique.

• c) The fair value of unlisted stocks in Level 3 fair value hierarchy is estimated by using the market approach and is determined by reference to recent financing activities, valuations of similar companies, market conditions, and other economic indicators. The significant unobservable input is the liquidity discount. No quantitative information is disclosed due to the possible changes in liquidity discount would not cause significant potential financial impact.

• (iii) Offsetting of financial assets and liabilities

The Company has financial instrument transactions which are set off in accordance with paragraph 42 of IAS 32; the related financial assets and liabilities are presented in the balance sheets on a net basis.

The table below summarizes the related information of offsetting of financial assets and liabilities:

liabilities:
			December 31, 2023
Financial assets		subject to offsetting, enforceable master netting			arrangements or similar agreements
			Gross amounts
		Gross	of recognized
		amounts of	financial	Net amounts of
		recognized	liabilities offset	financial assets
		financial	in the balance	presented in the	Amount not	set off in the
		assets	sheet	balance sheet	balance	sheet (d)	Net amounts
					Financial Cash collateral
		(a)	(b)	(c)=(a)-(b)	instruments	received	(e)=(c)-(d)
Notes and accounts
receivable, net	$	28,530,749	24,493,731	4,037,018	-	-	4,037,018
			December 31, 2023
Financial liabilities subject to offsetting, enforceable master netting arrangements or similar agreements
		Gross	Gross amounts	Net amounts of
		amounts of	of recognized	financial
		recognized	financial assets	liabilities
		financial	offset in the	presented in the	Amount not set off in the
		liabilities	balance sheet	balance sheet	balance	sheet (d)	Net amounts
					Financial	Cash collateral
		(a)	(b)	(c)=(a)-(b)	instruments	received	(e)=(c)-(d)
Accounts payable	$	55,449,899	24,493,731	30,956,168	-	-	30,956,168

(Continued)

57

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

			December 31, 2022	December 31, 2022
Financial assets		subject to offsetting, enforceable master netting			arrangements or similar agreements
			Gross amounts
		Gross	of recognized
		amounts of	financial	Net amounts of
		recognized	liabilities offset	financial assets
		financial	in the balance	presented in the	Amount not	set off in the
		assets	sheet	balance sheet	balance	sheet (d)	Net amounts
					Financial Cash collateral
		(a)	(b)	(c)=(a)-(b)	instruments	received	(e)=(c)-(d)
Notes and accounts
receivable, net	$	23,100,619	19,530,644	3,569,975	-	-	3,569,975
			December 31, 2022
Financial liabilities subject to offsetting, enforceable master netting arrangements or similar agreements
		Gross	Gross amounts	Net amounts of
		amounts of	of recognized	financial
		recognized	financial assets	liabilities
		financial	offset in the	presented in the	Amount not set off in the
		liabilities	balance sheet	balance sheet	balance	sheet (d)	Net amounts
					Financial	Cash collateral
		(a)	(b)	(c)=(a)-(b)	instruments	received	(e)=(c)-(d)
Accounts payable	$	40,630,046	19,530,644	21,099,402	-	-	21,099,402

• (aa) Financial risk management

The Company is exposed to credit risk, liquidity risk, and market risk (including currency risk, interest rate risk, and other market price risk). The Company has disclosed the information on exposure to the aforementioned risks and the Company’s policies and procedures to measure and manage those risks as well as the quantitative information below.

The Board of Directors are responsible for developing and monitoring the Company’ s risk management policies. The Company’ s risk management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor adherence to the controls. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s operations.

The Company’ s management monitors and reviews the financial activities in accordance with procedures required by relevant regulations and internal controls. Internal auditors undertake reviews of risk management controls and procedures, and the results of which are reported to the Board of Directors on a regular basis.

(i) Credit risk

• 1) The maximum exposure to credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty of a financial instrument fails to meet its contractual obligations, and arises principally from the Company’ s cash and cash equivalents, derivative instruments, receivables from customers, and other receivables. The maximum exposure to credit risk is equal to the carrying amount of the Company’s financial assets.

(Continued)

58

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

The maximum exposure to credit risk of financial loss due to the financial guarantees provided by the Company mainly arose from the following items:

 the carrying amounts of financial assets recognized in the balance sheets and

• the financial guarantees provided to subsidiaries amounting to $4,818,824 and $4,392,591, for the years ended December 31, 2023 and 2022.

• 2) Concentration of credit risk

The Company primarily sells and markets its multi-branded IT products through its subsidiaries and distributors in different geographic areas. The Company believes that there is no significant concentration of credit risk due to the Company’s large number of customers and their wide geographical spread.

• 3) Credit risk from receivables

Please refer to note 6(c) for credit risk exposure of notes and accounts receivable. Other financial assets measured at amortized cost include bonds carrying fixed interest rates, other receivables (refer to note 6(d)) and time deposits (classified as other financial assets). Abovementioned financial assets are considered low-credit-risk financial assets, and thus, the loss allowance is measured using 12 months ECL. Please refer to note 4(f) for descriptions about how the Company determines the credit risk.

(ii) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in settling its financial liabilities by delivering cash or another financial assets. The Company manages liquidity risk by monitoring regularly the current and mid- to long-term cash demand, maintaining adequate cash and banking facilities, and ensuring compliance with the terms of the loan agreements. As of December 31, 2023 and 2022, the Company had unused credit facilities of $36,361,028 and $35,045,988, respectively.

The table below is the maturity profile of the Company’ s financial liabilities based on contractual undiscounted payments, including principal and estimated interest.

December 31, 2023 Non-derivative financial liabilities: Bonds payable Long-term debt carrying fixed interest rates Accounts payable (including related parties) Other payables (including related parties) Lease liability	Contractual cash flows $ 10,191,500 1,755,000 32,157,494 21,732,992 83,463 $ 65,920,449	Within 1 year 69,000 25,500 32,157,494 19,139,553 55,682 51,447,229	1-2 years 2,569,000 25,500 - 2,593,439 18,617 5,206,556	2-5 years 7,553,500 76,500 - - 9,164 7,639,164	Over 5 years - 1,627,500 - - -
					1,627,500

(Continued)

59

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

Derivative financial instruments: Foreign currency forward contracts－ settled in gross Outflow Inflow December 31, 2022 Non-derivative financial liabilities: Bonds payable Accounts payable (including related parties) Other payables (including related parties) Lease liability Derivative financial instruments: Foreign currency forward contracts－ settled in gross Outflow Inflow	Contractual cash flows $ 36,697,141 (36,376,327) $ 320,814 $ 10,260,500 21,857,688 27,585,516 122,738 $ 59,826,442 $ 42,059,383 (41,583,557) $ 475,826	Within 1 year 36,697,141 (36,376,327) 320,814 69,000 21,857,688 24,918,741 64,177 46,909,606 42,059,383 (41,583,557) 475,826	1-2 years - - - 69,000 - 2,666,775 40,653 2,776,428 - - -	2-5 years - - - 10,122,500 - - 17,908 10,140,408 - - -	Over 5 years - -
					-
					- - - -
					-
					- -
					-

The Company does not expect that the cash flows included in the maturity analysis would occur significantly earlier or at significantly different amounts.

• (iii) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates, and equity prices, and will affect the Company’s income or the value of its financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

The Company utilizes derivative financial instruments to manage market risks and the volatility of profit or loss. All such transactions are carried out within the guidelines set by the Board of Directors.

1) Foreign currency risk

The Company is exposed to foreign currency risk on sales and purchases that are denominated in a currency other than the functional currency of the Company. The foreign currencies used in these transactions are mainly the Europe Currency (EUR) and the US dollar (USD), Indian Rupee (INR), etc. The Company utilizes foreign currency forward contracts to hedge its foreign currency exposure with respect to its forecast sales and purchases over the following 12 months.

(Continued)

60

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

Exposure to foreign currency risk and sensitivity analysis:

The Company’s exposure to foreign currency risk arises from cash and cash equivalents, notes and accounts receivable/payable (including related parties), and other receivables/ payables (including related parties) that are denominated in foreign currencies. At the reporting date, the carrying amounts of the Company’s significant monetary assets and liabilities denominated in a currency other than the functional currency of the Company and their sensitivity analysis were as follows:

(in thousands)

Financial assets Monetary items USD INR Financial liabilities Monetary items USD Financial assets Monetary items USD INR Financial liabilities Monetary items USD EUR		December 31, 2023	December 31, 2023	December 31, 2023
	Foreign currency $ 955,462 11,704,601 1,609,268	Exchange rate NTD Change in magnitude Pre-tax effect on profit or loss 30.7350 29,366,125 % 1 293,661 0.3694 4,323,680 % 1 43,237 30.7350 49,460,852 % 1 494,609 (in thousands) December 31, 2022
	Foreign currency $ 793,920 9,337,477 1,355,712 79,900	Exchange rate 30.7080 0.3712 30.7080 32.8729	NTD 24,379,695 3,466,071 41,631,204 2,626,545	Change in magnitude Pre-tax effect on profit or loss % 1 243,797 % 1 34,661 % 1 416,312 % 1 26,265

With varieties of foreign currencies, the Company disclosed foreign exchange gain (loss) on monetary items in aggregate. Please refer to note 6(y) for further information.

2) Interest rate risk

The Company’s loan from related parties carried fixed interest rate and therefore, the Company was not exposed to the risk arising from fluctuation of interest rates.

(Continued)

61

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

• 3) Other market price risk

The Company is exposed to the risk of price fluctuation in securities resulting from its investment in publicly traded stocks. The Company supervises the equity price risk actively and manages the risk based on fair value. The Company also has strategic investments in privately held stocks, in which the Company does not actively participate in their trading.

Assuming a hypothetical increase or decrease of 5% in equity prices of the equity investments at each reporting date, the other comprehensive income for the years ended December 31, 2023 and 2022, would have increased or decreased by $505,633 and $323,287, respectively.

(ab) Capital management

In consideration of the industry dynamics and future developments, as well as external environment factors, the Company maintains an optimal capital structure to enhance long-term shareholder value by managing its capital in a manner to ensure that it has sufficient and necessary financial resources to fund its working capital needs, research and development activities, dividend payments, and other business requirements for continuing operations and to reward shareholders and take into consideration the interests of other stakeholders.

• (ac) Investing and financing activities not affecting cash flows

• (i) Please refer to note 6(j) for a description of acquisition of right-of-use assets through leases in 2023 and 2022.

• (ii) The reconciliation of liabilities arising from financing activities were as follows:

Long-term debt Lease liabilities Loans from related parties Bonds payable Total liabilities from financing activities Lease liabilities Loans from related parties Bonds payable Total liabilities from financing activities	January 1, 2023 $ - 121,132 90,000 10,000,000 $ 10,211,132 January 1, 2022 $ 77,242 315,000 10,000,000 $ 10,392,242	Cash flows 1,500,000 (80,780) 160,000 - 1,579,220 Cash flows (83,477) (225,000) - (308,477)	Non-cash changes of leasing - 41,969 - - 41,969 Non-cash changes of leasing 127,367 - - 127,367	December 31, 2023
				1,500,000 82,321 250,000 10,000,000
				11,832,321
				December 31, 2022
				121,132 90,000 10,000,000
				10,211,132

(Continued)

62

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

7. Related-party transactions

• (a) Related party name and categories

The followings are subsidiaries and other related parties that have had transactions with the Company during the reporting periods.

pany during the reporting periods.
Name of related party	Relationship with the Company
Acer Market Services Limited (AMS)	Subsidiaries
Acer Computer (Far East) Limited (AFE)	Subsidiaries
Acer Information (Zhong Shan) Co., Ltd. (AIZS)	Subsidiaries
Acer Computer (Shanghai) Ltd. (ACCN)	Subsidiaries
Acer (Chongqing) Ltd. (ACCQ)	Subsidiaries
Acer European Holdings SA (AEH)	Subsidiaries
Acer Europe B.V. (AHN)	Subsidiaries
Acer Africa (Proprietary) Limited (AAF)	Subsidiaries
AGP Insurance (Guernsey) Limited (AGU)	Subsidiaries
Acer Sales International SA (ASIN)	Subsidiaries
Acer Europe SA (AEG)	Subsidiaries
Sertec 360 SA (SER)	Subsidiaries
Acer Bilisim Teknolojileri Limited Sirketi (ATR)	Subsidiaries
Acer Computer France S.A.S.U. (ACF)	Subsidiaries
Enfinitec France (ENFR)	Subsidiaries
Acer U.K. Limited (AUK)	Subsidiaries
Acer Italy S.R.L. (AIT)	Subsidiaries
Acer Computer GmbH (ACG)	Subsidiaries
Acer Austria GmbH (ACV)	Subsidiaries
Acer Czech Republic s.r.o. (ACZ)	Subsidiaries
Acer Computer Iberica, S.A. (AIB)	Subsidiaries
Enfinitec Switzerland AG (ENCH, formerly ASZ)	Subsidiaries
Asplex Sp. z o.o. (APX)	Subsidiaries
Acer Marketing Services LLC (ARU)	Subsidiaries
Acer Poland sp. z o.o. (APL)	Subsidiaries
Acer Computer B.V. (ACH)	Subsidiaries
CPYou B.V. (CPY)	Subsidiaries
Enfinitec B.V. (ENNL)	Subsidiaries
Enfinitec Germany GmbH (ENDE)	Subsidiaries
Enfinitec Italy S.R.L. (ENIT)	Subsidiaries
Enfinitec Poland Sp. z o.o. (ENPL)	Subsidiaries
Enfinitec Czech Republic s.r.o (ENCZ)	Subsidiaries
Acer Computer Norway AS (ACN)	Subsidiaries
Acer Finland Oy (AFN)	Subsidiaries

(Continued)

63

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

Name of related party Relationship with the Company Acer Sweden AB (ACW) Subsidiaries Acer Denmark A/S (ACD) Subsidiaries Boardwalk Capital Holdings Limited (Boardwalk) Subsidiaries Acer Computec Mexico, S.A. de C.V. (AMEX) Subsidiaries Acer American Holdings Corp. (AAH) Subsidiaries AGP Tecnologia em Informatica do Brasil Ltda. (ATB) Subsidiaries Acer Cloud Technology Inc. (ACTI) Subsidiaries Acer Cloud Technology (US), Inc. (ACTUS) Subsidiaries Gateway, Inc. (GWI) Subsidiaries Acer America Corporation (AAC) Subsidiaries Acer Service Corporation (ASC) Subsidiaries Acer Holdings International, Incorporated (AHI) Subsidiaries Acer Computer Co., Ltd. (ATH) Subsidiaries Acer Japan Corp. (AJC) Subsidiaries Acer Computer Australia Pty. Limited (ACA) Subsidiaries Acer Sales And Services Sdn Bhd (ASSB) Subsidiaries Acer Asia Pacific Sdn Bhd (AAPH) Subsidiaries Acer Computer (Singapore) Pte. Ltd. (ACS) Subsidiaries Acer Computer New Zealand Limited (ACNZ) Subsidiaries PT. Acer Indonesia (AIN) Subsidiaries PT. Acer Manufacturing Indonesia (AMI) Subsidiaries Acer India Private Limited (AIL) Subsidiaries Acer Vietnam Co., Ltd. (AVN) Subsidiaries Acer Philippines, Inc. (APHI) Subsidiaries Servex (Malaysia) Sdn Bhd (SMA) Subsidiaries Weblink International Inc. (WLII) Subsidiaries Wellife Inc. (WELL) Subsidiaries Pecer Bio-medical Technology Incorporated (PBT) Subsidiaries Protrade Applied Materials Corp. (PAM) Subsidiaries Protrade Asia Limited (PAL) Subsidiaries Dakota Co., Ltd. (DCL) Subsidiaries Protrade Shanghai Trading Co., Ltd. (PST) Subsidiaries Protrade Resources Vietnam Company Limited (PRV) Subsidiaries Cascadia Resources Inc. (CRI) Subsidiaries Acer Synergy Tech Corp. (AST) Subsidiaries Shanghai AST Technology Service Ltd. (ASTS) Subsidiaries Acer Synergy Manpower Corp. (ASM) Subsidiaries Acer Synergy Tech America Corporation (ASTA) Subsidiaries Shine Passion Engineering Co., Ltd (SPE) Subsidiaries (note 2)

(Continued)

64

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

Name of related party Relationship with the Company Acer Synergy Manpower America Corporation (ASMA) Subsidiaries Acer Digital Service Co. (ADSC) Subsidiaries Acer Energy Pack Inc. (ENP, formerly KTI) Subsidiaries Acer Gaming Inc. (AGM) Subsidiaries Acer Global Merchandise Philippines Inc. (AGMPH) Subsidiaries Winking Studios Limited (WKS) Subsidiaries (note 1) Winking Art Pte. Ltd (WKSG) Subsidiaries (note 1) Winking Entertainment Corporation (WKTW) Subsidiaries (note 1) Winking Skywalker Entertainment Limited (WKSK) Subsidiaries (note 1) Winking Entertainment (HK) Ltd Subsidiaries (note 1) Shanghai Winking Entertainment Limited (WKSH) Subsidiaries (note 1) Shanghai Wishing Entertainment Limited (SHW) Subsidiaries (note 1) Nanjing Winking Entertainment Ltd (WKNJ) Subsidiaries (note 1) Winking Entertainment Investment Limited Subsidiaries (note 1) Winking Art Limited (WKHK) Subsidiaries (note 1) Acer SoftCapital Incorporated (CCI) Subsidiaries DropZone Holding Limited (DZH) Subsidiaries DropZone (Hong Kong) Limited (DZL) Subsidiaries Acer SoftCapital Incorporated (ASCBVI) Subsidiaries Acer Gadget Inc. (AGT) Subsidiaries GadgeTek (Shanghai) Limited (GCN) Subsidiaries Acer BeingWare Holding Inc. (ABH) Subsidiaries Acer Cloud Technology (Taiwan) Inc. (ACTTW) Subsidiaries Altos Computing Inc. (ALT) Subsidiaries Beijing Altos Computing Ltd. (BJAC) Subsidiaries Altos Computing (India) Private Limited (ALIN) Subsidiaries Altos Computing (Thailand) Co., Ltd. (ALTH) Subsidiaries Acer Mobile Power System Inc. (MPS) Subsidiaries Acer e-Enabling Service Business Inc. (AEB) Subsidiaries Acer e-Enabling Service Business (Shang-Hai) Ltd. Subsidiaries (EBSH) Acer ITS Inc. (ITS) Subsidiaries Acer Medical Inc. (AMED) Subsidiaries Acer Cloud Technology(Chongqing) Ltd. (ACTCQ) Subsidiaries Acer Being Communication Inc. (ABC) Subsidiaries Acer Being Signage Inc. (ABST) Subsidiaries Acer Being Signage GmbH (ABSG) Subsidiaries Xplova Inc. (XPL) Subsidiaries Xplova (Shanghai) Ltd. (XPLSH) Subsidiaries

(Continued)

65

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

Name of related party Relationship with the Company Acer AI Cloud Inc. (AIC) Subsidiaries Acer Third Wave Software (Beijing) Co. Ltd (TWPBJ) Subsidiaries Acer Cyber Security Incorporated (ACSI) Subsidiaries Acer e-Enabling Data Center Incorporated (EDC) Subsidiaries ACSI Cyber Security Academy Inc. (ACAD) Subsidiaries Acer China Venture Corp (ACVC) Subsidiaries Sertec (Beijing) Ltd. (SEB) Subsidiaries StarVR Corporation (ASBZ) Subsidiaries AOPEN Inc. (AOI) Subsidiaries AOPEN America Inc.(AOA) Subsidiaries AOPEN Computer B.V.(AOE) Subsidiaries AOPEN Technology Inc.(AOTH) Subsidiaries AOPEN Japan Inc.(AOJ) Subsidiaries Aopen SmartVision Incorporated (AOSV) Subsidiaries AOPEN Global Solutons Pty Ltd.(AOGS) Subsidiaries Great Connection LTD.(GCL) Subsidiaries AOPEN International (ShangHai) Co., Ltd (AOC) Subsidiaries AOPEN Information Products (Zhongshan) Inc. (AOZ) Subsidiaries AOPEN Australia & New Zealand Pty Ltd (AOAU) Subsidiaries Bluechip Infotech Pty Ltd. (Bluechip) Subsidiaries Bluechip Infotech Incorporated (BLI) Subsidiaries Dingo Tech Pty Ltd. (DTP) Subsidiaries Mia Telecomms Pty Limited (MIA) Subsidiaries Digital Networks Australia Pty Ltd. (DNA) Subsidiaries Ingeniq Pty Ltd (IGP) Subsidiaries BLUECHIP GROUP (NZ) LIMITED (BLNZ) Subsidiaries BLUECHIP INFOTECH NEW ZEALAND LIMITED Subsidiaries (BLINZ) Highpoint Service Network Corporation (HSNC) Subsidiaries Highpoint Service Network (Thailand) Co., Ltd (HSNT) Subsidiaries Highpoint Service Network Vietnam Company Limited Subsidiaries (HSNV) PT HSN Tech Indonesia (HSNI) Subsidiaries HighPoint Service Network Sdn Bhd (HSN) Subsidiaries Highpoint Services Network Philippines, Inc. (HSNP) Subsidiaries AcerPure Inc. (API) Subsidiaries Acer Property Development Inc. (APDI) Subsidiaries Aspire Service & Development Inc. (ASDI) Subsidiaries Acer Asset Management Incorporated (AAM) Subsidiaries Acer Beverage Incorporated (ABI) Subsidiaries

(Continued)

66

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

Name of related party	Relationship with the Company
ACER TECHNOLOGY AND BUSINESS	Subsidiaries
DEVELOPMENT PTE. LTD. (ATBD)
Smart Frequency Technology Inc. (SFT)	Joint venture (SFT has been
	included in the Company’s
	subsidiaries from December 27,
	2023.)
Haoru Electric Co., Ltd (HRC)	Joint venture
GrandPad Inc. (GrandPAD)	Associates
Piovision International Inc. (HPT)	Associates
ECOM Software Inc. (ECS)	Associates
Kbest Technology Inc. (KBest)	Associates
Erics Sports Marketing Inc. (Erics)	The entity’ s chairman is the first-
	degree relatives of one of the key
	management of the Company
Acer Foundation	Substantive related party
Satoro Taiwan Inc.	The entity’s chairman is the
	Company’s director
Mu-Jin Investments Co., Ltd	The entity’s legal representative is
	the Company’s chairman
AiSails Power Inc.	The entity’s chairman is the
	Company’s director (On
	December 14, 2022, the chairman
	of AiSails Power Inc. resigned,
	AiSails Power Inc. was no longer
	a related party of the Company
	since then)
Mu-Shi Investments Co., Ltd	The entity’s legal representative is
	the Company’s chairman
Porrima Inc.	The entity’s chairman is the
	Company’s director

(Note1) On December 31, 2022, AGM acquired control over WKS and its subsidiaries, as a result, WKS and its subsidiaries became related parties of the Company.

• (Note2) In 2022, SPE was an associate of the Company. On January 1, 2023, AST acquired more than half of the voting rights of SPE through the written agreements among the shareholders of SPE, so that AST had the authority to control the daily operation of SPE. Therefore, AST had substantial ability to lead relevant activities of SPE, and thus incorporated it into the Company’s subsidiaries.

(Continued)

67

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(b) Significant related-party transactions

(i) Revenue

The amounts of significant sales to related parties were as follows:

Subsidiaries AEG AAC Others Associates Joint venture Other related parties	2023 $ 49,209,858 44,017,585 44,840,544 115,279 7 639 $ 138,183,912	2022
		62,204,606 39,345,499 48,684,621 58,894 7 764
		150,294,391

The sales prices and trade term with related parties depend on the economic environment and market competition, and are not comparable to those with third-party customers.

(ii) Purchases

The amounts of significant purchases from related parties were as follows:

Associates	2023 $ 6,941,943	2022
		4,133,492

The purchase price with related parties are not comparable to the purchase price with thirdparty vendors as the specifications of products are different.

(iii) Operating costs and expenses

The operating costs and expenses related to after-sale services for IT products, product development and design as well as business continuity plan services and the donation to related parties were as follows:

Accounts Cost of revenue Operating expense Operating expense Operating expense	Related-party categories 2023 Subsidiaries $ 601,685 Subsidiaries 44,092 Associates 1,745 Other related parties 10,000 $ 657,522	2022
		461,334 208,974 1,745 13,835
		685,888

(Continued)

68

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(iv) Lease

The Company leased investment property, property and rental office premises to its related － parties. The related rental income was reported in “other operating income and expenses net” and summarized as follows:

Subsidiaries: ASDI AEB Others Associates Joint venture Other related parties	2023 $ 60,592 21,553 15,357 - - 81 $ 97,583	2022
		58,745 17,890 18,422 212 211 127
		95,607

(v) Service income

The service income related to the system maintenance service provided to related parties was included in “ other gains and losses ” and was summarized as follows:

Subsidiaries Associates Joint venture Other related parties	2023 $ 33,031 48 3,771 159 $ 37,009	2022
		30,143 48 3,634 123
		33,948

(vi) Reorganization under common control

In view of continuously optimizing group resources integration and maximizing operational synergies, the Company sold 44,462 thousand shares of EDC’s common stock to ACSI for a consideration of $475,747 in January 2022. In addition, in order to optimize the subsidiaries’ investment structure, the Company acquired 30,969 thousand shares of Acer Sales and Services SDN BHD’s common stock and 3,985 thousand shares of Acer Computer (Singapore) Pte. Ltd.’s common stock from Acer Holdings International, Incorporated for considerations of $1,193,559 and $171,997, respectively, in December 2022. The aforementioned transactions are classified as reorganization under common control, and therefore, the difference between the considerations and carrying amounts of subsidiaries disposed was recognized in capital surplus.

(Continued)

69

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

(vii) Loans to related parties

The actual drawdown amounts were as follows:

Subsidiaries: AFE ITS EDC MPS ALT Interest rate	December 31, 2023 $ 365,916 543,000 150,000 - 80,000 $ 1,138,916 1.67%-4.73%	December 31, 2022
		373,931 410,000 - 76,000 132,000
		991,931
		0.98%-2.75%

Interest income related to loans to subsidiaries in 2023 and 2022 was $23,501 and $9,996, respectively.

(viii) Borrowings from related parties

The borrowings from related parties were as follows:

Subsidiaries: ADSC ABH Interest rate	December 31, 2023 $ 150,000 100,000 $ 250,000 1.62%	December 31, 2022
		90,000 -
		90,000
		0.93%

Interest expenses related to borrowings from subsidiaries in 2023 and 2022 were $2,708 and $1,744, respectively.

(ix) Payables related to defined benefit liabilities due to personnel transfer to subsidiaries

The net defined benefit liabilities have been transferred while certain employees transferred from the Company to ALT, HSNC, AEB, EDC, AGT and other subsidiaries. Related payables were included in “other payables to related parties” and “long-term payable to related parties”.

(Continued)

70

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

(x) Receivables from related parties

(xi)	Accounts Related-party categories December 31, 2023 Notes and accounts receivable from related parties Subsidiaries: AAC $ 73,007 ACA 1,308,208 AIL 4,333,513 Others 7,194,931 Notes and accounts receivable from related parties Associates 108,740 Note and accounts receivable from related parties Other related parties 19 Subtotal 13,018,418 Other receivables from related parties Subsidiaries 79,012 Other receivables from related parties (financing) Subsidiaries 1,138,916 Other receivables from related parties Associates 6 Other receivables from related parties Joint venture - Other receivables from related parties Other related parties 18 Subtotal 1,217,952 $ 14,236,370 Payables to related parties Accounts Related party categories December 31, 2023 Accounts payable to related parties Subsidiaries $ 1,201,326 Other payables to related parties Subsidiaries 218,815 Other payables to related parties Other related parties - Other payables to related parties (financing) Subsidiaries 250,000 Subtotal 468,815 Long-term payable to related parties Subsidiaries 13,353 $ 1,683,494	December 31, 2022
		2,008,759 1,251,180 3,491,157 5,954,774 37,557 33
		12,743,460
		56,772 991,931 - 667 129
		1,049,499
		13,792,959
		December 31, 2022
		758,286
		2,790,984 15,000 90,000
		2,895,984
		13,134
		3,667,404

(Continued)

71

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

• (xii) Guarantees and endorsements provided to related parties

As of December 31, 2023 and 2022, the balances of guarantees and endorsements provided to subsidiaries were $23,661,830 and $22,564,546, respectively, and the amounts actually drawn were $4,818,824 and $4,392,591, respectively.

• (c) Compensation for key management personnel

Short-term employee benefits Post-employment benefits	2023 $ 165,938 3,390 $ 169,328	2022
		185,428 3,716
		189,144

8. Pledged assets

－ The carrying values of pledged assets (reported under other financial assets non-current) were as follows:

Assets	Pledged to secure Contract bidding, refundable deposits, and project fulfillment guarantee	December 31, 2023 $ 152,782	December 31, 2022
Cash in bank and time deposits			148,466

9.

Significant commitments and contingencies

• (a) The Company has entered into software and royalty license agreements with Microsoft, Google, IBM, and other companies. The Company has fulfilled its obligations according to the contracts.

• (b) In the regular course of its business from, the Company received letter of notice from third parties asserting that the Company has infringed certain patents and demanded that it should obtain certain patent licenses. Although the Company does not expect that the outcome of any of these legal proceedings (individually or collectively) will have a material adverse effect on its business operations and finance, the litigation is inherently unpredictable. Therefore, the Company may be involved in a future lawsuit or enter into settlements of claims that could adversely affect its operating results or cash flows within a particular period.

• (c) As of December 31, 2023 and 2022, the Company had issued promissory notes amounting to $35,758,490 and $36,590,060, respectively, as collateral for obtaining credit facilities from financial institutions.

10. Significant loss from disaster: None

11. Significant subsequent events: None

(Continued)

72

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

12. Others

A summary of current-period employee benefits, depreciation, and amortization, by function, is as follows:

	2023	2023	2023		2022	2022	2022	2022
	Cost of revenue	Operating expenses	Total		Cost of revenue	Operating expenses		Total
Employee benefits: Salaries Insurance Pension Remuneration of directors Others Depreciation Amortization	- - - - - - 16,117	2,289,358 175,450 112,909 31,443 158,366 150,584 28,606	2,289,358 175,450 112,909 31,443 158,366 150,584 44,723		- - - - - - 1,174	2,840,106 179,606 104,083 31,800 172,870 144,017 22,097		2,840,106 179,606 104,083 31,800 172,870 144,017 23,271
Employees Directors not in concurrent employment Average employee benefits Average employee salaries Adjustment of average employee salaries							2022 1,621
							4
							2,039
							1,756

The Company’s compensation policy, including directors, managers, and employees, is as follows:

The compensation of directors and managers is evaluated and reviewed by Compensation Committee periodically. The compensation of employees is determined by participating in salary surveys every year and reviewing salary level regularly to provide competitive compensation to employees.

13. Additional disclosures

• (a) Information on significant transactions:

• (i) Financing provided to other parties: See Table 1 attached;

• (ii) Guarantees and endorsements provided to other parties: See Table 2 attached;

• (iii) Marketable securities held at reporting date (excluding investments in subsidiaries, associates, and jointly controlled entities): See Table 3 attached;

• (iv) Marketable securities for which the accumulated purchase or sale amounts for the period exceed $300 million or 20% of the paid-in capital: See Table 4 attached;

• (v) Acquisition of real estate at costs which exceeds $300 million or 20% of the paid-in capital: None;

(Continued)

73

ACER INCORPORATED Notes to Parent-Company-Only Financial Statements

• (vi) Disposal of real estate at prices which exceeds $300 million or 20% of the paid-in capital: None;

• (vii) Total purchases from and sales to related parties which exceed $100 million or 20% of the paid-in capital: See Table 5 attached;

• (viii) Receivables from related parties which exceed $100 million or 20% of the paid-in capital: See Table 6 attached;

• (ix) Information about derivative instruments transactions: See notes 6(b);

• (b) Information on investees: See Table 7 attached;

• (c) Information on investment in Mainland China:

• (i) The names of investees in Mainland China, the main businesses and products, paid-in capital, method of investment, information on inflow or outflow of capital, percentage of ownership, income (losses) of the investees, share of profits (losses) of investees, ending balance, amount received as earnings distributions from the investment, and limitation on investment: See Table 8 attached;

• (ii) Significant direct or indirect transactions with investee companies, the prices and terms of payment, unrealized gain or loss, and other related information which is helpful to understand the impact of investment in Mainland China on financial reports: For the Company’ s significant direct or indirect transactions (eliminated when compiling the consolidated financial statements) with investee companies in Mainland China for the year ended December 31, 2023, please refer to “Information on significant transactions” above.

• (d) Major shareholders:

According to the information provided by Taiwan Depository & Clearing Corporation, none of the shareholders holds over 5% of the Company’s stocks.

14. Segment information

Please refer to the consolidated financial statements for the year ended December 31, 2023.

Acer Incorporated Financing provided to other parties For the year ended December 31, 2023

Table 1

Table 1 Acer Incorporated Financing provided to other parties For the year ended December 31, 2023	Table 1 Acer Incorporated Financing provided to other parties For the year ended December 31, 2023	Table 1 Acer Incorporated Financing provided to other parties For the year ended December 31, 2023	Table 1 Acer Incorporated Financing provided to other parties For the year ended December 31, 2023	Table 1 Acer Incorporated Financing provided to other parties For the year ended December 31, 2023	Table 1 Acer Incorporated Financing provided to other parties For the year ended December 31, 2023	Table 1 Acer Incorporated Financing provided to other parties For the year ended December 31, 2023	Table 1 Acer Incorporated Financing provided to other parties For the year ended December 31, 2023	Table 1 Acer Incorporated Financing provided to other parties For the year ended December 31, 2023	Table 1 Acer Incorporated Financing provided to other parties For the year ended December 31, 2023	Table 1 Acer Incorporated Financing provided to other parties For the year ended December 31, 2023	Table 1 Acer Incorporated Financing provided to other parties For the year ended December 31, 2023	Table 1 Acer Incorporated Financing provided to other parties For the year ended December 31, 2023
													(Amounts in Thousands of New Taiwan Dollars)
No.	Financing Company	Counterparty	Financial Statement Account (Note 4)	Related Party	Maximum Balance for the Period	Ending Balance	Actual Amount Drawn	Interest Rate	Nature of Financing (Note 1)	Transaction Amounts	Reasons for Short-term Financing	Loss Allowance	Collateral		Financing Limit for Each Borrowing Company (Note 2)	Financing Company's Total Financing Amount Limits (Note 2)
													Item	Value
0 0 0 0 0 0 0 0 1 1 1 1 1 1 2 2 2 2 2 2 3 4 4 5 6 7 8 8 9 10 11 11 11 12 13 14	The Company The Company The Company The Company The Company The Company The Company The Company ABH ABH ABH ABH ABH ABH ADSC ADSC ADSC ADSC ADSC ADSC AIZS GWI GWI AAH Bluechip AEG AHN AHN ASDI API AST AST AST WLII WKHK AMED	ADSC MPS EDC ALT ITS AFE ABH PAM ABST ABSG ABC AIC APDI The Company The Company Bluechip ENP ABI BLI ATBD ACCQ AAC CRI AAC BLI AEH ENNL ENDE APDI APDI ASTA ASM SPE CRI WKTW ABI	Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties	Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes	2,000 245,000 790,000 590,000 1,200,000 768,233 2,000 826,170 203,000 139,412 79,000 40,000 155,000 250,000 240,000 103,358 17,000 7,000 15,250 33,136 215,890 912,195 453,866 9,512,989 9,144 99,027 119,126 51,054 20,000 100,000 120,000 60,000 60,000 152,400 45,000 20,000	1,000 95,000 390,000 290,000 600,000 365,916 1,000 826,170 102,000 67,857 45,000 - - 150,000 150,000 41,873 9,000 7,000 15,250 32,590 - 450,268 430,290 4,640,985 - - 118,749 50,893 20,000 100,000 120,000 - 60,000 - - 20,000	- - 150,000 80,000 543,000 365,916 - - 100,000 67,857 43,000 - - 100,000 150,000 41,873 4,000 - 10,400 32,590 - 81,448 368,820 4,640,985 - - 118,749 50,893 20,000 50,000 - - - - - -	1%~8% 1%~8% 1%~8% 1%~8% 1%~8% 1%~8% 1%~8% 1%~8% 1%~8% 1%~8% 1%~8% 1%~8% 1%~8% 1%~8% 1%~8% 1%~8% 1%~8% 1%~8% 1%~8% 1%~8% 1%~8% 1%~8% 1%~8% 1%~8% 1%~8% 1%~8% 1%~8% 1%~8% 1%~8% 1%~8% - - - 1.2%~5.5% - -	2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	7,472,652 7,472,652 7,472,652 7,472,652 7,472,652 7,472,652 7,472,652 7,472,652 195,900 195,900 195,900 195,900 195,900 783,599 830,743 207,686 207,686 207,686 207,686 207,686 211,042 29,017,525 4,836,254 36,219,805 79,775 2,032,313 5,889,207 5,889,207 46,842 126,272 89,053 89,053 89,053 214,126 9,272 22,194	37,363,262 37,363,262 37,363,262 37,363,262 37,363,262 37,363,262 37,363,262 37,363,262 783,599 783,599 783,599 783,599 783,599 783,599 830,743 830,743 830,743 830,743 830,743 830,743 211,042 29,017,525 4,836,254 36,219,805 79,775 4,064,625 11,778,413 11,778,413 46,842 126,272 356,211 356,211 356,211 856,505 37,088 88,775

～ 74 ～

Note	1:	Nature of Financing:
		Type 2: Short-term financing purpose
Note	2:	1. The aggregate financing amount shall not exceed 50% of net worth of the Company, within which the short-term financing amount shall not exceed 20% of net worth of the Company.
		1-1. For an entity which the Company owns less than 50% of its outstanding common shares, the individual financing amounts shall not exceed lower of 5% of net worth of the Company and 40% of net worth of the entity.
		1-2. For an entity which the Company owns more than 50% of its outstanding common shares, the individual financing amounts shall not exceed 10% of net worth of the Company.
		1-3. When a subsidiary who provides financing to other parties is directly or indirectly wholly owned by the Company, the aforementioned limit of aggregate amount and individual financing amount is applied.
		2. For AIZS, the aggregate financing amount shall not exceed 120% of net worth of AIZS.
		3. The financing limits of GWI and AAH were as follows:
		3-1. The individual financing amounts shall not exceed higher of 20% of net worth of the entity or the financing amount subject to regulations governing financing provided to other parties stipulated by the ultimate parent company.
		3-2. For an entity which the ultimate parent company wholly owns directly or indirectly, the individual financing amounts shall not exceed 120% of net worth of the entity.
		4. The financing limits of ABH, API and ADSC were as follows:
		4-1. The aggregate financing amount shall not exceed 40% of net worth of the entities listed above.
		4-2. The individual financing amounts to the ultimate parent company shall not exceed 40% of net worth of the entities listed above.
		5. For an entity which the financing company owns more than 50% of its outstanding common shares or is fellow subsidiary of the same group, the individual financing amounts of ABH, ADSC and API.
		shall not exceed 10% of net worth of ABH, ADSC and API.
		6. The financing limit of ASDI was as follows:
		6-1. The aggregate financing amount shall not exceed 40% of net worth of ASDI.
		6-2. The individual financing amounts to the ultimate parent company and its related parties shall not exceed 40% of net worth of ASDI.
		7. Both of the aggregate financing amount and the individual financing amounts of Bluechip shall not exceed 20% of net worth of Bluechip.
		8. The financing limits of AST, WLII, AMED and WKHK were as follows:
		8-1. The aggregate financing amount shall not exceed 40% of net worth of the entities listed above.
		8-2. The individual financing amounts shall not exceed 10% of net worth of the entities listed above.
		8-3.Regarding the financing provided by AST to ASTA, as the financing contract with a financing limit of $30,000 expired in January 2023, AST’s Board of Directors had approved the financing of $60,000 to ASTA due to its operating requirements.
		However, because of the early meeting of the Board of Directors, the ending balance of the financing provided by AST to ASTA was repetitively calculated.
		9. The financing limit of AEG and AHN were as follows:
		8-1. The aggregate financing amount shall not exceed 100% of net worth of the entities listed above.
		8-2. The individual financing amounts shall not exceed 50% of net worth of the entities listed above.
Note	3:	Net worth of the Company and subsidiaries listed above are the most recent audited.
Note	4:	The above transactions are eliminated when preparing the consolidated financial statements.

～ 75 ～

Acer Incorporated Guarantees and endorsements provided to other parties For the year ended December 31, 2023

Table 2

(Amounts in Thousands of New Taiwan Dollars)

No.	Endorsement/ Guarantee Provider	Guaranteed Party	Guaranteed Party	Limits on Endorsement/ Guarantee Amount Provided to Each Guaranteed Party (Note 2 to Note 7)	Maximum Balance for the Period	Ending Balance	Actual Amount Drawn	Amount of Endorsement/ Guarantee Collateralized by Properties	Ratio of Accumulated Endorsement/ Guarantee to Net Equity per Latest Financial Statements	Maximum Endorsement/ Guarantee Amount Allowable (Note 2 to Note 7)	Guarantee Provided by Parent Company	Guarantee Provided by A Subsidiary	Guarantee Provided to Subsidiaries in Mainland China
		Name	Nature of Relationship (Note 1)
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 2 3 4 4 4 5 5 5 5 6 6 6 6 6	The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company AAC AHI AOI AST AST AST WLII WLII WLII WLII HSNC HSNC HSNC HSNC HSNC	AJC ATH/ALTH Acer Asia Pacific subsidiaries AEG Acer EMEA subsidiaries Acer EMEA subsidiaries ACN/ACD/ACW/AFN Acer Pan America subsidiaries AMEX Acer Greater China subsidiaries SMA ACA AIL ACCN/ACCQ/BJAC ABSG ITS ALT MPS EDC AAC AGM API CPY ALTH ALIN AGU HRC ASC The Company AOC ASTS ASM ASTA CRI PAM PST PAL HSNT HSNI HSNV HSNP HSN	2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 6 4 3 2 2 2 2 2 2 2 2 2 2 2 2 2	14,945,305 14,945,305 14,945,305 14,945,305 14,945,305 14,945,305 14,945,305 14,945,305 14,945,305 14,945,305 14,945,305 14,945,305 14,945,305 14,945,305 14,945,305 14,945,305 14,945,305 14,945,305 14,945,305 14,945,305 14,945,305 14,945,305 14,945,305 14,945,305 14,945,305 14,945,305 14,945,305 2,575,981 3,150,002 423,174 178,106 178,106 178,106 428,253 428,253 428,253 428,253 81,071 81,071 81,071 81,071 81,071	693,028 171,821 2,269,330 307,724 1,134,665 156,300 12,204 5,511,230 291,771 1,783,045 209,208 178,305 3,338,825 889,731 178,398 402,100 410,000 201,772 2,917,710 1,783,045 1,300,520 100,000 17,282 48,629 116,818 312,600 1,500,000 19,451 1,666,667 178,305 35,590 60,000 127,416 216,607 197,495 318,540 29,177 64,838 30,766 32,419 32,419 32,419	653,751 162,895 2,151,450 305,582 1,075,725 153,675 12,204 5,224,950 276,615 1,690,425 200,707 169,043 3,166,976 865,775 170,639 402,100 325,368 153,074 2,766,150 1,690,425 - 63,074 16,964 46,103 110,810 307,350 1,500,000 18,441 1,666,667 - - - 61,470 162,896 122,940 144,455 27,662 61,470 15,368 30,735 30,735 30,735	- - 28,909 305,582 42,000 18,636 12,204 774,436 - - 117,040 169,043 971,333 - 16,964 102,100 - - 933,984 1,309,629 - - 16,964 - - - - 18,441 1,666,667 - - - - 11,521 - 1,837 - 9,832 - - - -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	0.87% 0.22% 2.88% 0.41% 1.44% 0.21% 0.02% 6.99% 0.37% 2.26% 0.27% 0.23% 4.24% 1.16% 0.23% 0.54% 0.44% 0.20% 3.70% 2.26% - 0.08% 0.02% 0.06% 0.15% 0.41% 2.01% 0.72% 10.58% - - - 6.90% 7.61% 5.74% 6.75% 1.29% 30.33% 7.58% 15.16% 15.16% 15.16%	74,726,525 74,726,525 74,726,525 74,726,525 74,726,525 74,726,525 74,726,525 74,726,525 74,726,525 74,726,525 74,726,525 74,726,525 74,726,525 74,726,525 74,726,525 74,726,525 74,726,525 74,726,525 74,726,525 74,726,525 74,726,525 74,726,525 74,726,525 74,726,525 74,726,525 74,726,525 74,726,525 2,575,981 15,750,008 1,410,580 445,264 445,264 445,264 1,070,631 1,070,631 1,070,631 1,070,631 202,678 202,678 202,678 202,678 202,678	Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y	Y	Y Y Y Y Y

～ 76 ～

Note 1: Relationships between the endorsement/guarantee provider and the guaranteed party:

Type 2: an entity directly or indirectly owned by the Company over 50%

Type 3: the Company, directly and indirectly, has voting rights of the entity over 50%

• Type 4: between entities directly or indirectly owned by the Company over 90%

• Type 6: An entity jointly invested by capital contributing shareholders that make endorsements/guarantees in proportion to their shareholding percentages 。

• Note 2: The aggregate endorsement/guarantee amount provided shall not exceed the most recent audited net worth of the Company.

• The endorsement/guarantee provided to individual guarantee party shall not exceed 20% of the most recent audited net worth of the Company.

• Note 3: The aggregate endorsement/guarantee amount provided shall not exceed the most recent audited net worth of AOI. The endorsement/guarantee provided to individual guarantee party shall not exceed 30% of the most recent audited net worth of AOI.

• Note 4: The aggregate endorsement/guarantee amount provided shall not exceed 20% of the most recent audited net worth of AAC. The endorsement/guarantee provided to individual guarantee party shall not exceed 20% of the most recent audited net worth of AAC.

• Note 5: The aggregate endorsement/guarantee amount provided shall not exceed 50% of the most recent audited net worth of AST. The endorsement/guarantee provided to individual guarantee party shall not exceed 20% of the most recent audited net worth of AST.

• Note 6: The aggregate endorsement/guarantee amount provided limits of WLII and its subsidiaries were as follows: The aggregate endorsement/guarantee amount provided shall not exceed 50% of the most recent audited net worth of the entities listed above. The endorsement/guarantee provided to individual guarantee party shall not exceed 20% of the most recent audited net worth of the entities listed above. The aggregate endorsement/guarantee amount provided by WLII and its subsidiaries shall not exceed 50% of the most recent audited net worth of WLII. The endorsement/guarantee provided to individual guarantee party by WLII and its subsidiaries shall not exceed 20% of the most recent audited net worth of WLII.

• Note 7: The aggregate endorsement/guarantee amount provided shall not exceed the most recent audited net worth of HSNC. The endorsement/guarantee provided to individual guarantee party shall not exceed 40% of the most recent audited net worth of HSNC.

• Note 8: The aggregate endorsement/guarantee amount provided shall not exceed the most recent audited net worth of AHI. The endorsement/guarantee provided to individual guarantee party shall not exceed 20% of the most recent audited net worth of AHI.

~77~

Acer Incorporated

Marketable securities held at reporting date

(Excluding investments in subsidiaries, associates, and joint controlled entities) December 31, 2023

Table 3

Table 3	Table 3	Table 3	Table 3
				(Amounts in Thousands of New Taiwan Dollars / Shares)
Investing Company	Marketable Securities Type and Name	Relationship with the Securities Issuer	Financial Statement Account	Ending Balance				Maximum ownership during 2023		Note
				Shares/ Units (in thousands)	Carrying Value	Percentage of Ownership	Fair Value	Shares/ Units (in thousands)	Percentage of Ownership
The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company	Stock: Starbreeze Stock: Qisda Stock: WPG Holdings Stock: Wistron Preferred Stock B: SKFHC Stock: FocalTech Preferred stock B: CTBC Preferred stock B: CTFH Preferred stock A: CTFH Preferred stock B: FBFH Preferred stock A: FBFH Preferred stock A: UBOT Preferred stock C: FBFH Preferred stock E: TSFH Stock: Apacer Stock: Welldone Stock: Pell Bio-med Technology Co., Ltd. Stock: CT Ambi Investment and Consulting Inc. Stock: Fortune Electric Stock: GreenHarvest	- - - - - - - - - - - - - - - - - Other related parties - -	Financial assets measured at fair value through profit or loss — current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current	572 89,516 4,012 19,109 6,830 8,733 855 1,177 260 991 254 30 7,000 335 11,710 10,000 2,400 2,000 2,500 1,111	817 4,296,753 327,343 1,884,147 195,679 982,427 50,787 70,268 15,496 59,360 15,520 1,539 385,000 17,118 724,849 542,000 120,000 16,972 27,401 49,995	0.04% 4.55% 0.24% 0.66% 3.08% 4.01% 0.26% 0.17% 0.03% 0.15% 0.04% 0.02% 2.10% 0.07% 9.54% 10.03% 4.45% 15.50% 8.83% 8.40%	817 4,296,753 327,343 1,884,147 195,679 982,427 50,787 70,268 15,496 59,360 15,520 1,539 385,000 17,118 724,849 542,000 120,000 16,972 27,401 49,995	572 89,516 4,012 54,816 6,830 8,733 855 1,177 260 991 254 30 7,000 335 11,710 10,000 2,400 2,000 2,500 1,111	0.10% 4.55% 0.24% 1.89% 3.08% 4.04% 0.26% 0.17% 0.03% 0.15% 0.04% 0.02% 2.10% 0.07% 9.54% 10.03% 5.45% 15.50% 8.83% 8.40%	Note 1 Note 1 Note 1 Note 2 Note 1 Note 2 Note 2 Note 3 Note 4

～ 78 ～

Investing Company	Marketable Securities Type and Name	Relationship with the Securities Issuer	Financial Statement Account	Ending Balance	Ending Balance	Ending Balance	Ending Balance	Maximum ownership during 2023	Maximum ownership during 2023	Note
				Shares/ Units (in thousands)	Carrying Value	Percentage of Ownership	Fair Value	Shares/ Units (in thousands)	Percentage of Ownership
The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company	Stock: C-LiFe Technologies, Inc. USD Fixed Rate Callable Note 1.83 02/23/2024 USD Fixed Rate Callable Note 3.05 04/01/2024 USD Fixed Rate Callable Note 3.85 05/13/2025 CREDIT AGRICOLE SA Bond 4.375 03/17/2025 UBS Bond 4.125 09/24/2025 HSBC Bond 4.375 11/23/26 HSBC Bond 3.9 05/25/26 UBS Bond 4.253 03/23/28 MUFG Bond 2.757 09/13/26 SUMIBK Bond 5.52 01/13/28 Citigroup Inc. Bond 3.3 04/27/25 Citigroup Inc. Bond 3.3 04/27/25 MIZUHO Bond 3.477 04/12/26 SUMIBK Bond 3.364 07/12/27 MUFG Bond 3.85 03/01/26 SUMIBK Bond 5.52 01/13/28 MIZUHO Bond 3.477 04/12/26 CREDIT AGRICOLE 5.301 07.12/28 HSBC 5.625 03/17/25 BNP 3.375 01/09/25 P12 Cathay Life Insurance 1A BNP 3.375 01/09/25	- - - - - - - - - - - - - - - - - - - - - - -	Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at amortized cost －current Financial assets measured at amortized cost －current Financial assets measured at amortized cost －non-current Financial assets measured at amortized cost －non-current Financial assets measured at amortized cost －non-current Financial assets measured at amortized cost －non-current Financial assets measured at amortized cost －non-current Financial assets measured at amortized cost －non-current Financial assets measured at amortized cost －non-current Financial assets measured at amortized cost －non-current Financial assets measured at amortized cost －non-current Financial assets measured at amortized cost －non-current Financial assets measured at amortized cost －non-current Financial assets measured at amortized cost －non-current Financial assets measured at amortized cost －non-current Financial assets measured at amortized cost －non-current Financial assets measured at amortized cost －non-current Financial assets measured at amortized cost －non-current Financial assets measured at amortized cost －non-current Financial assets measured at amortized cost －non-current Financial assets measured at amortized cost －non-current Financial assets measured at amortized cost －non-current	11,000 - - - - - - - - - - - - - - - - - - - - - -	330,000 307,350 153,675 153,675 61,550 61,295 61,091 210,087 208,245 174,471 93,978 60,382 90,559 89,414 146,932 90,177 62,783 59,597 92,205 92,257 89,800 1,500,000 60,070	11.38% - - - - - - - - - - - - - - - - - - - - - -	330,000 305,775 152,716 148,780 60,400 60,072 59,971 209,050 208,583 174,046 93,948 60,097 90,145 89,072 145,947 89,808 62,632 59,381 93,772 92,318 90,336 1,499,754 60,224	11,000 - - - - - - - - - - - - - - - - - - - - - -	11.38% - - - - - - - - - - - - - - - - - - - - - -

～ 79 ～

Investing Company	Marketable Securities Type and Name	Relationship with the Securities Issuer	Financial Statement Account	Ending Balance	Ending Balance	Ending Balance	Ending Balance	Maximum ownership during 2023	Maximum ownership during 2023	Note
				Shares/ Units (in thousands)	Carrying Value	Percentage of Ownership	Fair Value	Shares/ Units (in thousands)	Percentage of Ownership
The Company The Company The Company The Company The Company The Company The Company The Company ADSC ADSC ADSC CCI CCI AGT ACTCQ AEB AEB ACSI AOI AST AST AST	SOCGEN 4.677 06/15/27 Corp BNP 3.5 11/16/27 HSBC 5.625 03/17/25 CREDIT AGRICOLE 5.301 07.12/28 SOCGEN 4.677 06/15/27 Corp BNP 3.5 11/16/27 WSTPNZ 4.902 02/15/28 ANZNZ 5.355 08/14/28 Stock: Wistron Stock: Benepet Biomedical Co., Ltd. 21st Century Technology Co., Ltd ID5 Fund L.P. Stock: BoniO Stock: RoyalTek Equity of Thinputer Technology Corporation Preferred Stock B: SKFHC Stock: Ambi Arts Preferred Stock B: SKFHC Preferred stock C: FBFH Preferred stock C: FBFH Stock: Simple Mart Retail Preferred stock A: FBFH	- - - - - - - - - - - - - - - - Other related parties - - - - -	Financial assets measured at amortized cost －non-current Financial assets measured at amortized cost －non-current Financial assets measured at amortized cost －non-current Financial assets measured at amortized cost －non-current Financial assets measured at amortized cost －non-current Financial assets measured at amortized cost －non-current Financial assets measured at amortized cost －non-current Financial assets measured at amortized cost －non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current	- - - - - - - - 13,046 322 592 3,800 463 1,015 - 666 180 666 200 400 300 20	89,628 85,909 61,487 60,964 59,390 85,016 153,675 157,119 1,286,354 1,848 19,613 78,223 121,815 49,961 1,000 19,081 1,019 19,081 11,000 22,000 13,935 1,222	- - - - - - - - 0.45% 18.92% 0.86% 19.39% 12.20% 2.01% 13.79% 0.30% 18.00% 0.30% 0.06% 0.12% 0.44% 0.003%	90,877 87,016 61,546 62,515 60,585 87,016 152,814 156,180 1,286,354 1,848 19,613 78,223 121,815 49,961 1,000 19,081 1,019 19,081 11,000 22,000 13,935 1,222	- - - - - - - - 13,046 322 592 3,800 463 1,015 - 666 180 666 200 400 300 20	- - - - - - - - 0.45% 18.92% 0.86% 19.39% 12.20% 2.01% 0.00% 0.30% 18.00% 0.30% 0.06% 0.12% 0.44% 0.003%	Note 1 Note 1 Note 3 Note 3 Note 2

～ 80 ～

Investing Company	Marketable Securities Type and Name	Relationship with the Securities Issuer	Financial Statement Account	Ending Balance	Ending Balance	Ending Balance	Ending Balance	Maximum ownership during 2023	Maximum ownership during 2023	Note
				Shares/ Units (in thousands)	Carrying Value	Percentage of Ownership	Fair Value	Shares/ Units (in thousands)	Percentage of Ownership
AST AST SPE Boardwalk ALT	Preferred stock E: TSFH Preferred Stock B: SKFHC Credit Suisse AG 4 05.15/27 Citi Goldman Sachs Financial Square Government Fund Stock: QSAN Technology, Inc.	- - - - -	Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at amortized cost －non-current Financial assets measured at fair value through profit or loss — current Financial assets measured at fair value through other comprehensive income — non-current	952 549 - - 966	48,647 15,729 2,803 73,764 78,247	0.19% 0.25% 0.000% 0.000% 16.68%	48,647 15,729 2,803 73,764 78,247	952 549 - - 966	0.19% 0.25% - - 16.68%	Note 4 Note 1

Note 1: Note 2: Note 3: Note 4:

The stocks of SKFHC、CTBC、CTFH、FBFH are preferred stock B. The percentage of ownership listed above is the percentage of ownership of preferred stock B. The stocks of CTFH、FBFH、UBOT are prefered stock A. The percentage of ownership listed above is the percentage of ownership of preferred stock A.

The stocks of FBFH are prefered stock C. The percentage of ownership listed above is the percentage of ownership of preferred stock C. The stocks of TSFH are prefered stock E. The percentage of ownership listed above is the percentage of ownership of preferred stock E.

～ 81 ～

Acer Incorporated

Marketable securities for which the accumulated purchase or sale amounts for the period exceed NT$300 million or 20% of the paid-in capital For the year ended December 31, 2023

Table 4

Table 4	Table 4	Table 4	Table 4	Table 4
					(Amounts in Thousands of New Taiwan Dollars / Shares)
Company Name	Marketable Securities Type and Name	Financial Statement Account	Counterparty	Nature of Relationship	Beginning Balance		Acquisitions		Disposal				Ending Balance
					Shares/ Units (in thousands)	Amount	Shares/ Units (in thousands)	Amount	Shares/ Units (in thousands)	Amount	Carrying Value	Gain (Loss) on Disposal	Shares/ Units (in thousands)	Amount (Note 1)
The Company The Company The Company The Company The Company The Company ACCN ACCN ACCQ ACCQ AIZS AHN	Stock: Wistron Stock: Welldone Stock: C-LiFe Technologies, Inc. HRC AOI P12 Cathay Life Insurance 1A Fubon Bank (China) CNY SDRMBC China Merchants Bank Dianjin Series Fubon Bank (China) CNY SDRMBC China Merchants Bank Dianjin Series China Merchants Bank Dianjin Series EUR Term Liquidity Fund	Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Financial assets measured at fair value through other comprehensive income — non-current Investments accounted for using equity method Investments accounted for using equity method Financial assets measured at amortized cost－non-current Financial assets measured at fair value through profit or loss —current Financial assets measured at fair value through profit or loss —current Financial assets measured at fair value through profit or loss —current Financial assets measured at fair value through profit or loss —current Financial assets measured at fair value through profit or loss —current Financial assets measured at fair value through profit or loss — current	Exchange Market Welldone Corporation C-LiFe Technologies, Inc. Haoru Electric Co., Ltd AOI and its subsidiaries Cathay Life Insurance Co., Ltd. Fubon Bank (China) Co., Ltd. China Merchants Bank Co., Ltd. Fubon Bank (China) Co., Ltd. China Merchants Bank Co., Ltd. China Merchants Bank Co., Ltd. Citibank Taiwan Limited	None None None Joint Venture Parent/Subsidiary None None None None None None None	54,816 - - - 28,970 - - - - - - -	1,611,590 - - - 347,183 - - - - - - 771,292	- 10,000 11,000 30,000 5,294 - 619,400 290,000 2,311,300 675,000 189,000 -	- 400,500 330,000 300,000 360,013 1,500,000 2,710,304 1,262,852 10,142,911 2,941,260 825,942 -	35,707 - - - - - 619,400 290,000 2,311,300 675,000 189,000 -	4,285,821 - - - - - 2,726,687 1,271,031 10,184,939 2,951,454 830,902 775,088	1,073,795 - - - - - 2,710,304 1,262,852 10,142,911 2,941,260 825,942 771,292	3,212,026 - - - - - 16,383 8,179 42,028 10,194 4,960 3,796	19,109 10,000 11,000 30,000 34,264 - - - - - - -	1,884,147 542,000 330,000 300,081 619,886 1,500,000 - - - - - -

Note 1: Ending balance includes evaluation gains and losses, investment gains and losses, translation adjustments and other amounts.

～ 82 ～

Acer Incorporated Total purchases from and sales to related parties which exceed NT$100 million or 20% of the paid-in capital For the year ended December 31, 2023

Table 5

Table 5	Table 5	Table 5	For the year ended December 31, 2023	For the year ended December 31, 2023	For the year ended December 31, 2023	For the year ended December 31, 2023	For the year ended December 31, 2023	For the year ended December 31, 2023	For the year ended December 31, 2023	For the year ended December 31, 2023	For the year ended December 31, 2023
			(Amounts in Thousands of New Taiwan Dollars)
Company Name	Related Party	Nature of Relationship	Transaction Details				Transactions with Terms Different from Others(Note 1)		Notes/Accounts Receivable or (Payable)		Note
			Purchases/ (Sales)	Amount	% of Total Purchases/(Sales)	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total
The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company WELL ALT ALT EDC AEB AEB AGM AGM WKSH	AAC ACA ACCQ ACNZ ACS AEG AFE AIL AIN AJC AMI APHI ASSB ATH AVN GPI ALT WLII APHI API AVN ALT EDC AEB AOI AGT WLII WLII The Company The Company The Company The Company WLII AFE AGMPH WKNJ	Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Associate Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Fellow subsidiary Fellow subsidiary Parent/Subsidiary Parent/Subsidiary	(Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases (Sales) Purchases (Sales) (Sales) Purchases (Sales) (Sales) (Sales)	(44,017,585) (4,956,844) (8,903,705) (254,869) (1,774,265) (49,209,858) (2,091,740) (8,267,854) (4,122,475) (1,309,732) (3,348,687) (1,308,197) (2,451,512) (3,466,520) (249,413) (115,278) (136,695) (1,877,723) 255,386 126,242 158,530 563,130 108,921 143,197 4,911,590 970,455 162,297 664,288 (563,130) 136,695 (108,921) (143,197) 315,354 (180,151) (952,144) (338,054)	(29.15)% (3.28)% (5.90)% (0.17)% (1.18)% (32.59)% (1.39)% (5.48)% (2.73)% (0.87)% (2.22)% (0.87)% (1.62)% (2.30)% (0.17)% (0.08)% (0.09)% (1.24)% 0.18% 0.09% 0.11% 0.39% 0.08% 0.10% 3.39% 0.67% 0.11% 97.57% (62.98)% 16.72% (5.90)% (1.90)% 5.08% (4.81)% (25.41)% (69.79)%	OA90 OA60 OA60 OA60 OA60 OA60 OA60 OA150 OA90 OA60 OA90 OA60 OA60 OA60 OA60 EM120 OA60 EM45 OA60 OA60 OA60 OA60 EM60 EM30 EM60 OA60 EM60 EM45 OA60 OA60 EM60 EM30 EM60 OA10 OA60 OA45	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	73,007 1,308,208 121,199 - 248,222 1,146,056 778,302 4,333,513 1,157,544 963,214 782,343 389,181 423,646 636,962 69,994 108,740 24,485 289,987 (90,722) (26,052) (43,166) (126,138) (41,790) (33,355) (773,965) (206,865) (31,985) (67,056) 126,138 (24,485) 41,790 33,355 (82,250) 24,024 259,164 91,202	0.43% 7.67% 0.71% - 1.46% 6.72% 4.56% 25.41% 6.79% 5.65% 4.59% 2.28% 2.48% 3.73% 0.41% 0.64% 0.14% 1.70% (0.28)% (0.08)% (0.13)% (0.39)% (0.13)% (0.10)% (2.41)% (0.64)% (0.10)% (98.08)% 63.15% (13.09)% 14.54% 1.52% (6.93)% 4.35% 46.93% 62.36%

～83～

Company Name	Related Party	Nature of Relationship	Transaction Details	Transaction Details	Transaction Details	Transaction Details	Transactions with Terms Different from Others(Note 1)	Transactions with Terms Different from Others(Note 1)	Notes/Accounts Receivable or (Payable)	Notes/Accounts Receivable or (Payable)	Note
			Purchases/ (Sales)	Amount	% of Total Purchases/(Sales)	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total
WKSH WKNJ WKNJ AOI AOI AGT WLII WLII WLII WLII PAM AAC AAC AAC AAC ACA ACA ACCN ACCQ ACCQ ACCQ ACF ACF ACF ACG ACG ACG ACG ACH ACH ACNZ ACS ACZ ACZ ACZ AEG AEG AEG AEG AEG AEG AEG	WKNJ WKSH WKSH AOE The Company The Company The Company WELL AEB The Company CRI AMEX ASC ATB The Company Bluechip The Company ACCQ ACCN GCN The Company AEG AEG APX AEG AEG APL APX AEG APX The Company The Company AEG ASIN APX ACF ACG ACH AIB AIT ASIN AUK	Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Fellow subsidiary Parent/Subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Parent/Subsidiary Fellow subsidiary Parent/Subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Parent/Subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Parent/Subsidiary Parent/Subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary	Purchases (Sales) Purchases (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) Purchases (Sales) (Sales) (Sales) (Sales) Purchases (Sales) Purchases (Sales) Purchases Purchases Purchases (Sales) Purchases Purchases (Sales) Purchases Purchases Purchases Purchases Purchases Purchases Purchases (Sales) (Sales) Purchases (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales)	131,723 (131,723) 338,054 (235,719) (4,911,590) (970,455) (162,297) (664,288) (315,354) 1,877,723 (552,795) (1,633,627) (245,826) (296,991) 44,017,585 (113,606) 4,956,844 (318,323) 318,323 276,408 8,903,705 (378,603) 4,693,806 185,325 (508,657) 12,765,410 118,126 217,935 2,743,047 112,328 254,869 1,774,265 (167,387) (128,865) 160,866 (4,693,806) (12,765,410) (2,743,047) (3,139,298) (4,029,912) (13,934,588) (5,196,691)	35.86% (21.44)% 56.63% (4.45)% (92.71)% (58.72)% (0.91)% (3.73)% (1.77)% 10.96% (22.86)% (3.24)% (0.49)% (0.59)% 94.14% (1.89)% 82.66% (64.51)% 2.71% 2.35% 75.74% (6.49)% 85.52% 3.38% (3.48)% 100.00% 1.16% 2.14% 93.62% 3.83% 61.76% 83.76% (34.85)% (26.83)% 37.70% (8.53)% (23.19)% (4.98)% (5.70)% (7.32)% (25.32)% (9.44)%	EM45 EM45 OA45 OA60 EM60 OA60 EM60 EM45 EM60 EM45 EM60 OA60 OA60 OA60 OA90 EM30 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA30 OA45 OA60 OA60 OA60 OA60 OA60 OA30 OA90 OA60 OA60 OA60 OA60 OA60 OA60 OA60	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	(53,408) 53,408 (91,202) 131,896 773,965 206,865 31,985 67,056 82,250 (289,987) 26,075 340,877 3,083 73,761 (73,007) 34,539 (1,308,208) 99,873 (99,873) (107,784) (121,199) 793,275 (133,779) (11,805) 1,828,209 (2,686,232) (13,028) (26,477) (646,864) (14,820) - (248,222) 31,466 - (21,136) 133,779 2,686,232 646,864 414,947 1,505,382 - 1,411,458	(100.00)% 58.80% (60.96)% 11.11% 65.16% 62.60% 1.25% 2.63% 3.23% (11.37)% 11.20% 3.82% 0.03% 0.83% (4.52)% 2.41% (94.64)% 84.14% (5.92)% (6.39)% (7.18)% 28.06% (73.38)% (6.47)% 27.05% (97.89)% (0.47)% (0.96)% (94.81)% (2.17)% - (91.97)% 49.78% - (76.45)% 1.03% 20.69% 4.98% 3.20% 11.60% - 10.87%

～84～

Company Name	Related Party	Nature of Relationship	Transaction Details	Transaction Details	Transaction Details	Transaction Details	Transactions with Terms Different from Others(Note 1)	Transactions with Terms Different from Others(Note 1)	Notes/Accounts Receivable or (Payable)	Notes/Accounts Receivable or (Payable)	Note
			Purchases/ (Sales)	Amount	% of Total Purchases/(Sales)	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total
AEG AEG AEG AEG AEG AEG AEG AEG AEG AEG AEG AEG AEH AFE AFE AGMPH AIB AIB AIB AIL AIL AIN AIN AIN AIT AIT AJC ALIN AMEX AMI AMI AMI AOE APHI APHI API APL APX APX APX APX APX	CPY ENCH SER ACF ACG ACZ AEH AIB AIT APX ENNL The Company AEG The Company AGM AGM AEG AEG APX ALIN The Company AMI AMI The Company AEG AEG The Company AIL AAC AIN AIN The Company AOI The Company The Company The Company ACG ACF ACG ACH ACZ AEG	Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Parent/Subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Fellow subsidiary Parent/Subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Parent/Subsidiary Parent/Subsidiary Fellow subsidiary Parent/Subsidiary Fellow subsidiary Fellow subsidiary Parent/Subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary	(Sales) (Sales) (Sales) Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases (Sales) Purchases Purchases Purchases (Sales) Purchases Purchases (Sales) Purchases (Sales) Purchases Purchases (Sales) Purchases Purchases Purchases Purchases (Sales) Purchases Purchases Purchases (Sales) Purchases (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales)	(969,127) (1,042,560) (1,705,243) 378,603 508,657 167,387 222,552 312,525 233,638 619,568 280,885 49,209,858 (222,552) 2,091,740 180,151 952,144 (312,525) 3,139,298 135,667 (617,368) 8,267,854 (108,565) 3,822,308 4,122,475 (233,638) 4,029,912 1,309,732 617,368 1,633,627 (3,822,308) 108,565 3,348,687 235,719 (255,386) 1,308,197 (126,242) (118,126) (185,325) (217,935) (112,328) (160,866) (619,568)	(1.76)% (1.89)% (3.10)% 0.69% 0.92% 0.30% 0.40% 0.57% 0.42% 1.13% 0.51% 89.41% (74.22)% 89.07% 7.67% 90.52% (8.34)% 86.68% 3.75% (3.49)% 44.69% (1.28)% 45.86% 49.47% (5.28)% 94.35% 97.02% 100.00% 95.77% (99.63)% 2.78% 85.86% 98.88% (11.42)% 80.17% (47.45)% (100.00)% (10.48)% (12.33)% (6.35)% (9.10)% (35.05)%	OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA30 OA60 OA60 OA60 OA10 OA60 OA60 OA60 OA60 OA120 OA150 OA60 OA90 OA90 OA60 OA60 OA60 OA120 OA60 OA90 OA60 OA90 OA60 OA60 OA60 OA60 OA30 OA60 OA45 OA60 OA90 OA60	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	354,789 785 80,949 (793,275) (1,828,209) (31,466) - (534,339) (1,140,576) (11,744) (47,799) (1,146,056) - (778,302) (24,024) (259,164) 534,339 (414,947) (14,632) 305,642 (4,333,513) 1,319 (34,312) (1,157,544) 1,140,576 (1,505,382) (963,214) (305,642) (340,877) 34,312 (1,319) (782,343) (131,896) 90,722 (389,181) 26,052 13,028 11,805 26,477 14,820 21,136 11,744	2.73% 0.01% 0.62% (11.20)% (25.81)% (0.44)% - (7.54)% (16.10)% (0.17)% (0.67)% (16.18)% - (98.19)% (3.03)% (99.80)% 28.23% (94.71)% (3.34)% 7.58% (69.38)% 0.68% (3.28)% (100.00)% 31.35% (99.40)% (89.47)% (99.70)% (100.00)% 100.00% (0.16)% (94.48)% (94.34)% 35.78% (95.88)% 62.94% 86.66% 6.47% 14.50% 8.12% 11.58% 6.43%

～85～

Company Name	Related Party	Nature of Relationship	Transaction Details	Transaction Details	Transaction Details	Transaction Details	Transactions with Terms Different from Others(Note 1)	Transactions with Terms Different from Others(Note 1)	Notes/Accounts Receivable or (Payable)	Notes/Accounts Receivable or (Payable)	Note
			Purchases/ (Sales)	Amount	% of Total Purchases/(Sales)	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total
APX ARU ASC ASIN ASIN ASIN ASSB ASSB ATB ATH AUK AVN AVN Bluechip CPY CRI ENCH ENNL ENNL ENPL GCN GPI SER SMA	AIB ASIN AAC ACZ AEG ARU SMA The Company AAC The Company AEG The Company The Company ACA AEG PAM AEG AEG ENPL ENNL ACCQ The Company AEG ASSB	Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Parent/Subsidiary Parent/Subsidiary Fellow subsidiary Parent/Subsidiary Fellow subsidiary Parent/Subsidiary Parent/Subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Associate Fellow subsidiary Parent/Subsidiary	(Sales) (Sales) Purchases Purchases Purchases Purchases (Sales) Purchases Purchases Purchases Purchases (Sales) Purchases Purchases Purchases Purchases Purchases (Sales) Purchases (Sales) (Sales) Purchases Purchases Purchases	(135,667) (106,811) 245,826 128,865 13,934,588 106,811 (487,341) 2,451,512 296,991 3,466,520 5,196,691 (158,530) 249,413 113,606 969,127 552,795 1,042,560 (280,885) 115,601 (115,601) (276,408) 115,278 1,705,243 487,341	(7.68)% (82.48)% 100.00% 0.93% 100.00% 0.77% (16.67)% 88.02% 3.60% 84.58% 93.80% (40.82)% 99.89% 3.22% 85.64% 38.53% 85.01% (53.14)% 19.71% (100.00)% (63.82)% 46.37% 100.00% 13.92%	OA60 OA60 OA60 OA30 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA60 EM30 OA60 EM60 OA60 OA30 OA60 OA60 OA60 EM120 OA60 OA60	- - - - - - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - - - - -	14,632 - (3,083) - - - 2,549 (423,646) (73,761) (636,962) (1,411,458) 43,166 (69,994) (34,539) (354,789) (26,075) (785) 47,799 (114,690) 114,690 107,784 (108,740) (80,949) (2,549)	8.02% - (2.93)% - - - 1.56% (96.21)% (2.40)% (95.75)% (98.71)% 50.57% (1) (10.29)% (94.52)% (56.05)% (10.08)% 16.25% (17.93)% - 100.00% (37.77)% (56.79)% (0.94)%

Note 1: The trade terms and price of sales with related parties are not comparable to those with third-party customers as they are determined by the

economic environment and market competition of specific locations.

The purchase price with related parties are not comparable to the purchase price with third-party vendors as the specifications of products are different. Note 2: The above transactions between parent and subsidiary are eliminated when preparing the consolidated financial statements.

～86～

Acer Incorporated Receivables from related parties which exceed NT$100 million or 20% of the paid-in capital December 31, 2023

Table 6

Table 6	Table 6	Table 6	Table 6	Table 6
					(Amounts in Thousands of New Taiwan Dollars)
Company Name	Related Party	Nature of Relationship	Ending Balance	Turnover Rate	Overdue		Amount Received in Subsequent Period	Loss Allowance	Note
					Amount	Action Taken
The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company ACSI ALT ABH ABH AGM AOI AOI AOI AGT	ACA ACCQ ACS AEG AFE AIL AIN AJC AMI APHI ASSB ATH GPI ALT ITS EDC WLII EDC The Company The Company ABST AGMPH AOA AOE The Company The Company	Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Associate Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary	1,308,208 133,942 248,222 1,146,056 1,144,218 4,333,513 1,164,025 963,309 782,343 389,181 423,646 636,962 108,740 106,547 543,897 159,836 290,409 101,448 135,910 100,963 100,506 259,164 211,285 131,896 773,965 206,865	3.87 36.28 9.98 56.13 4.86 2.11 3.83 1.35 5.01 2.84 5.11 5.44 1.58 7.59 5.34 3.85 6.80 1.99 5.30 - - 3.97 0.29 1.44 8.47 5.10	486,984 - - - - 610,980 18,780 450,707 167,766 64,007 - 177,360 108,740 2,839 383 - - - 54,767 - - 109,054 193,870 98,336 - 44,111	Under Collection - - - - Under Collection Under Collection Under Collection Under Collection Under Collection - Under Collection Under Collection Under Collection Under Collection - - - Under Collection - - Under Collection Under Collection Under Collection - Under Collection	728,358 133,942 196,334 1,060,220 611,862 281,094 688,453 147,984 259,719 247,234 329,295 636,962 2,818 23,606 897 9,095 283,570 - 52,275 100,963 - 223,367 4,535 55,367 774,291 119,985	- - - - - - - - - - - - - - - - - - - - - - - - - -

～ 87 ～

Company Name	Related Party	Nature of Relationship	Ending Balance	Turnover Rate	Overdue	Overdue	Amount Received in Subsequent Period	Loss Allowance	Note
					Amount	Action Taken
ADSC AAC AAC AAH ACCQ ACF ACG ACH AEG AEG AEG AEG AEG AEG AEG AHN AIB AIL AIT APHI ASC AUK ENPL GCN GWI	The Company AMEX ASC AAC The Company AEG AEG AEG ACF ACG ACH AIB AIT AUK CPY ENNL AEG ALIN AEG The Company AAC AEG ENNL ACCQ CRI	Parent/Subsidiary Fellow subsidiary Fellow subsidiary Parent/Subsidiary Parent/Subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Parent/Subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Parent/Subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary Fellow subsidiary	150,000 346,531 402,541 4,815,423 537,986 796,215 1,828,209 383,937 133,779 2,686,232 646,864 414,947 1,505,382 1,411,458 354,789 119,806 535,667 305,642 1,152,926 102,667 173,847 570,720 114,690 107,784 368,820	- 4.50 5.08 - - 0.35 0.26 0.04 5.08 3.97 3.46 4.93 5.30 3.14 2.94 - 0.51 3.07 0.23 3.40 10.05 0.16 2.02 1.56 -	- 126,111 82 - - 47,296 - 6,389 - 111,289 281 - - 358,438 134,039 - - - - - - - - 2,087 -	- Under Collection Under Collection - - Under Collection - Under Collection - Under Collection Under Collection - - Under Collection Under Collection - - - - - - - - Under Collection -	- 126,111 51 - - 47,296 2,243 6,389 - 281,193 281 - - 359,473 52,454 - - - - - - - - 69,056 -	- - - - - - - - - - - - - - - - - - - - - - - - -

Note 1: The above transactions between parent and subsidiary are eliminated when preparing the consolidated financial statements.

Note 2: Receivables are financing and interest receivables, not applicable.

～ 88 ～

Acer Incorporated

Names, Locations, and Related Information of Investees over which The Company Exercises Significant Influence December 31, 2023

Table 7

Table 7	Table 7	Table 7	Table 7
				(Amounts in Thousands of New Taiwan Dollars/Shares)
Investor	Investee	Location	Main Businesses and Products	Original Investment Amount		Balances as of December 31, 2023			Maximum ownership during 2023		Net Income (Loss) of the Investee	Share of profits/ losses of investee	Note
				December 31, 2023	December 31, 2022	Shares (in thousands)	Percentage of Ownership	Carrying Value	Shares (in thousands)	Percentage of Ownership
The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company HSNC HSNC HSNC HSNC HSNC AST AST AST ASM ADSC ADSC ADSC ADSC ADSC ADSC CCI CCI CCI CCI CCI	ADSC Boardwalk AEH AHI Bluechip ASCBVI CCI ACSI WLII AGT ABH ASBZ AOI HSNC SFT AST API AGM AAM ABI ASSB ACS CHC ATBD HRC HSNT HSNI HSN HSNP HSNV ASM ASTA SPE ASMA ECS KBest ENP AST ACSI AGM ECS DZH ATB ALIN AIN	Taiwan British Virgin Islands Switzerland British Virgin Islands Australia British Virgin Islands Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Malaysia Singapore Taiwan Singapore Taiwan Thailand Indonesia Malaysia Philippines Vietnam Taiwan U.S.A. Taiwan U.S.A. Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Cayman Islands Brazil Indonesia India	Investment and holding activity Investment and holding activity Investment and holding activity Investment and holding activity Sale of computer peripherals and software system Investment and holding activity Investment and holding activity Cyber security service Sale of computers and communication products Research, design and sale of smart handheld products and peripheral 3C products Investment and holding activity Solutions provider of B2B virtual reality Sale, manufacture, import and export of commercial computer products, software, components, peripheral equipment and apparatus; repair and maintenance service of computer products Repair and maintenance of IT products R&D, manufacturing and sales of technology application products System integration service Intelligent solutions of air quality Agency of video game console and peripherals Property held and related management business Sales of beverages and related products Sale of brand-name IT products Sale of brand-name IT products Energy technical services Real estate and related management business Energy technical services After-sale and value-added services of IT products After-sale and value-added services of IT products After-sale and value-added services of IT products After-sale and value-added services of IT products After-sale and value-added services of IT products Human resources and project service System integration service Plant engineering planning and construction Human resources and project service Business integration system Development and manufacturing of radio and microwave equipment Manufacturing of lithium battery module System integration service Cyber security service Agency of video game console and peripherals Business integration system Investment and holding activity Sale of brand-name IT products Sale of brand-name IT products Sale of brand-name IT products	1,143,730 41,496,383 2,464,262 6,230,208 43,407 - 6,957,928 1,362,550 728,694 6,993,697 2,128,004 395,981 693,168 102,419 172,000 404,558 181,030 893,639 1,077,189 25,000 1,193,559 171,997 50,000 - 300,000 2,345 30,501 87,268 6,357 4,192 66,805 14,000 99,700 15,759 40,851 130,720 19,000 13,056 18,720 4,582 - 845,523 304,540 161,621 3,484	1,143,730 41,496,383 2,464,262 6,230,208 43,407 5,658,111 1,299,817 1,362,550 728,694 6,993,697 2,128,004 395,981 333,155 102,419 132,000 288,390 271,642 893,639 1,077,189 15,000 1,193,559 171,997 50,000 - - 2,345 30,501 87,268 6,357 4,192 20,000 14,000 99,700 - 40,851 130,720 15,000 8,998 18,720 4,582 - - - - -	66,215 1,263,432 147 191,155 1,421 - 850.00 13,296 48,073 39,309 130,308 441 34,264 10,242 24,000 12,640 14,984 24,449 107,719 1,000 30,969 3,985 5,000 1 30,000 25 990 1,000 106 - 6,063 1 3,474 1 1,244 4,713 1,900 245 195 63 452 100 2 163 1	100.00 92.02 100.00 100.00 24.18 - 100.00 59.88 58.93 63.54 100.00 66.81 43.68 63.18 100.00 56.94 59.94 69.85 100.00 100.00 100.00 100.00 41.67 100.00 60.00 100.00 99.00 100.00 100.00 100.00 60.63 100.00 29.21 100.00 24.88 29.84 95.00 1.10 0.88 0.18 9.05 100.00 - 1.00 -	2,076,858 28,544,110 19,502,239 15,750,004 91,452 - 3,535,915 774,962 1,279,493 2,268,145 1,958,997 7,588 619,886 128,051 91,105 507,034 189,205 824,549 1,066,869 2,487 1,397,955 237,770 45,306 (578) 300,081 13,672 45,693 124,446 43,255 5,603 83,306 33,186 123,839 15,246 28,434 64,142 5,198 9,830 11,366 2,117 9,369 853 305 300 3	66,215 1,263,432 147 191,155 1,421 158,475 850 13,296 48,073 39,309 130,308 441 34,264 10,242 24,000 12,640 22,484 24,449 107,719 1,500 30,969 3,985 5,000 100 30,000 25 990 1,000 106 - 6,564 1 3,474 1 1,244 4,713 1,900 245 195 63 452 100 2 163 1	100.00 92.02 100.00 100.00 24.86 100.00 100.00 59.88 58.93 65.51 100.00 66.81 43.68 63.18 100.00 56.94 89.94 69.85 100.00 100.00 100.00 100.00 41.67 100.00 60.00 100.00 99.00 100.00 100.00 100.00 100.00 100.00 33.33 100.00 24.88 29.84 95.00 1.10 0.88 0.18 9.05 100.00 - 1.00 -	81,371 (146,287) (366,713) (479,802) 9,817 3,215 53,004 190,587 412,703 121,263 247,299 (92) 232,207 24,567 (6,591) 64,212 18,912 59,333 (8,148) (12,662) 49,426 11,561 (10,096) (585) 135 7,612 2,761 24,791 11,519 1,548 8,589 9,060 65,400 (124) 30,822 108,298 (2,672) 64,212 190,587 59,333 30,822 - (691,698) 14,884 114,183	81,371 (134,606) (366,713) (479,802) 1,855 3,215 53,004 114,096 243,192 70,976 247,299 (62) 89,071 15,522 (8,811) 36,473 17,009 41,447 (8,148) (12,662) 49,426 11,561 (4,207) (585) 81 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1	Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Associate Parent/Subsidiary Joint Venture Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Associate Associate Parent/Subsidiary Fellow subsidiaries Fellow subsidiaries Fellow subsidiaries Associate Parent/Subsidiary Fellow subsidiaries Fellow subsidiaries Fellow subsidiaries

～ 89 ～

Investor	Investee	Location	Main Businesses and Products	Original Investment Amount	Original Investment Amount	Balances as of December 31, 2023	Balances as of December 31, 2023	Balances as of December 31, 2023	Maximum ownership during 2023	Maximum ownership during 2023	Net Income (Loss) of the Investee	Share of profits/ losses of investee	Note
				December 31, 2023	December 31, 2022	Shares (in thousands)	Percentage of Ownership	Carrying Value	Shares (in thousands)	Percentage of Ownership
WLII WLII WLII WLII WLII WLII PAM PAM PAM PAM AEH ACTI Bluechip Bluechip Bluechip Bluechip ABH ABH ABH ABH ABH ABH ABH ABH ABH ACTTW ACTTW ABST AEB ITS AGM AGM API API ACSI ACSI AOI AOI AOI AOI AOI AOI AOI AOI AOTH AOGS	HPT WELL ANT PBT Bluechip PAM PAL DCL CRI PRV Boardwalk GPI BLI DTP BLNZ MIA AEB ACTTW MPS ALT ITS AMED ABC XPL AIC ABC ABST ABSG DIS TOB AGMPH WKS APDI ASDI ACAD EDC Bluechip AOA AOE AOTH AOJ AOSV AOGS AMTC GCL AOAU	Taiwan Taiwan Taiwan Taiwan Australia Taiwan British Virgin Islands Samoa U.S.A. Vietnam British Virgin Islands U.S.A. Taiwan Australia New Zealand Australia Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Germany Taiwan Taiwan Philippines Cayman Islands Taiwan Taiwan Taiwan Taiwan Australia U.S.A. the Netherlands British Virgin Islands Japan Taiwan Australia Taiwan Hong Kong Australia	Retail service of software Sales of 3C products and home appliances OEM sales agent of mechanical components, automobiles and locomotives Sale of health supplements and biotech service Sale of computer peripherals and software system Trade and distribution of synthetic and natural rubber, plastic resins and related fillers Trade and distribution of synthetic and natural rubber, plastic resins and related fillers Investment and holding activity Trade and distribution of synthetic and natural rubber, plastic resins and related fillers Trade and distribution of synthetic and natural rubber, plastic resins and related fillers Investment and holding activity Development of user-friendly IoT device Sale of computer peripherals and software system Investment and holding activity Investment and holding activity Sale of computer peripherals and software system Providing solutions of cloud and digitalization Development of Internet of Beings and cloud technology, and integration of cloud technology, software and hardware Research, development, and sale of batteries High performance computing, cloud computing, softwaredefined storage, and IT solution Programs and services of intelligent transportation and electronic ticketing Intelligent medical examination and data interpretation analysis, medical big data, and health management and related information exchange Software design service Design, development and sale of smart bicycle speedometer Providing cloud technology and solutions Software design service Technical service and research of aBeing cloud digital content management Technical service and research of aBeing cloud digital content management Wholesale of packaged software Professional parking lot management services and intelligent parking equipment Agency of video game console and peripherals Investment and holding activity Solar optronics business Hotel management service Cyber security training Business continuity plan and IT operation outsourcing services Sale of computer peripherals and software system Sale of computer, apparatus system, and peripheral equipment Sale of computer, apparatus system, and peripheral equipment Investment and holding activity Sale of computer, apparatus system, and peripheral equipment Sale of computer, apparatus system, and peripheral equipment Sale of computer, apparatus system, and peripheral equipment Manufacturing and sale of touch display, touch controller and its driver Sale of computer, apparatus system, and peripheral equipment Sale of computer, apparatus system, and peripheral equipment	26,820 10,000 203,052 750 22,411 628,483 36,979 135,924 99,078 14,940 3,333,032 350,477 1,000 110,110 69,343 149,329 276,559 955,056 179,111 78,613 523,384 267,834 18,500 38,173 62,676 76,371 300,000 325,630 10,125 97,661 8,340 692,872 37,446 73,758 10,000 475,748 36,915 295,771 214,094 1,623 2,899 15,000 2,956 363,284 2,675 3	26,820 10,000 203,052 750 22,411 628,483 36,979.00 135,924 99,078 2,880 3,333,032 350,477 1,000 110,110 69,343 149,329 276,559 955,056 179,111 78,613 394,772 267,834 18,500 38,173 50,676 76,371 300,000 325,630 10,125 - 8,340 641,544 37,446 73,758 10,000 475,748 36,915 295,771 214,094 1,623 2,899 60,000 2,956 363,284 2,675 3	882 1,000 6,000 75 434 14,340 70 650 2,000 1 109,639 436 100 1 3,600 719 26,304 2,900 9,750 6,581 15,750 10,279 1,225 2,310 2,900 1,275 2,500 6,029 675 1,661 154 142,538 2,958 5,000 1,000 44,462 570 15,000 1 50 1 1,500 105 6,399 300 1	30.22 100.00 20.00 75.00 7.38 62.53 100.00 100.00 100.00 100.00 7.98 28.85 100.00 100.00 100.00 100.00 63.46 100.00 94.20 78.59 100.00 67.51 49.00 100.00 100.00 51.00 100.00 100.00 20.00 16.13 100.00 50.96 100.00 100.00 100.00 100.00 9.70 100.00 100.00 100.00 100.00 100.00 70.00 16.60 100.00 100.00	16,301 28,323 331,601 1,091 21,833 565,987 36,944 98,341 161,594 12,668 2,480,930 159,195 (380) 2 96,708 180,035 1,245,420 (64,782) 79,341 68,427 90,906 149,829 (12,606) 14,296 25,534 (13,122) (71,107) (28,853) 9,738 97,661 32,084 724,835 39,230 117,104 4,992 599,351 36,691 (192,952) 34,394 - 314,177 27,332 12,902 (15,374) 328,903 3,890 2,389	882 1,000 6,000 75 434 14,340 70 650 2,000 1 109,639 436 100 1 3,600 719 26,304 2,900 9,750 6,581 34,308 10,279 1,225 2,310 2,900 1,275 2,500 6,029 675 1,661 154 12,337 2,958 5,000 1,000 44,462 570 15,000 1.00 50 1 4,000 105 6,399 300 1	30.22 100.00 20.00 75.00 7.59 62.53 100.00 100.00 100.00 100.00 7.98 28.85 100.00 100.00 100.00 100.00 63.46 100.00 94.20 78.59 100.00 67.51 49.00 100.00 100.00 51.00 100.00 100.00 20.00 16.13 100.00 54.96 100.00 100.00 100.00 100.00 9.97 100.00 100.00 100.00 100.00 100.00 70.00 16.60 100.00 100.00	6,777 16,881 267,166 441 9,817 15,361 (2,210) (22,529) 31,218 (1,229) (146,287) 9,894 2,274 - 844 (8,648) 501,328 (21,246) 2,496 6,734 (42,925) (38,181) (1,666) 284 (2,764) (1,666) (6,926) (5,627) 4,215 - 15,044 48,145 1,353 53,838 (930) 116,671 9,817 (23,382) (10,887) 3,151 711 (672) (35,143) 164,379 2 (11,012)	Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1	Associate Parent/Subsidiary Associate Parent/Subsidiary Fellow subsidiaries Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Fellow subsidiaries Associate Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Associate Associate Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Fellow subsidiaries Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Associate Parent/Subsidiary Parent/Subsidiary

Note 1: The share of profits or losses of the investee company is not disclosed herein as such amount is already included in the share of profits or losses of the investor company.

～ 90 ～

Acer Incorporated Information on Investments in Mainland China For the year ended December 31, 2023

Table 8

Table 8	Table 8	Table 8	Table 8	Table 8
										(Amounts in Thousands of New Taiwan Dollars)
Investee Company Name	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment (Note 1)	Accumulated Outflow of Investment from Taiwan as of January 1, 2023	Investment Flows		Accumulated Outflow of Investment from Taiwan as of December 31, 2023	Net Income (Losses) of Investee	% of Ownership of Direct or Indirect Investment	Maximum ownership during 2023		Share of profits/ losses of investee	Carrying Value as of December 31, 2023	Accumulated Inward Remittance of Earnings as of December 31, 2023
					Outflow	Inflow				Shares	Percentage of Ownership
Acer Third Wave Software (Beijing) Co. Ltd. Acer Information (Zhong Shan) Co., Ltd. Acer Computer (Shanghai) Ltd. Acer (Chongqing) Ltd. Acer Cloud Technology (Chongqing) Ltd. Innovation and Commercialization Accelerator Inc. Xplova (Shanghai) Ltd. Consumer Insights Research (Chongqing) Inc. Sertec (Beijing) Ltd. Beijing Altos Computing Ltd. Shanghai AST Technology Service Ltd. GadgeTek (Shanghai) Limited AOPEN International (ShangHai) Co., Ltd AOPEN Information Products (Zhongshan) Inc. Protrade Shanghai Trading Co., Ltd. Shanghai Winking Entertainment Limited Shanghai Wishing Entertainment Limited Nanjing Winking Entertainment Ltd Acer e-Enabling Service Business (Shang-Hai) Ltd.	Sale of commercial and cloud application software and technical service Sale of brand-name IT products Repair and maintenance of IT products Sale of brand-name IT products Design, development, sale, and advisory of computer software and hardware Development, design, manufacturing, sale, and maintenance of intelligent terminal devices Sale of smart bicycle speedometer and operating social platform for bicycle riding and sports Collection, analysis and research of data information Repair and maintenance of IT products High performance computing, cloud computing, software-defined storage, and IT solution System integration service Sale of peripheral 3C products Sale of computer, apparatus system, and peripheral equipment Manufacture and sale of computer parts and components Trade and distribution of synthetic and natural rubber, plastic resins and related fillers Holding activity, art outsourcing and game development headquarter Management of collaborative art design and IP licensing in Mainland China Art outsourcing Sales of information software and information consulting service	92,205 46,103 61,470 4,610,250 153,675 25,973 9,239 12,987 4,329 19,047 19,973 15,368 161,322 450,261 19,960 433,759 89,469 86,403 46,103	1 2 2 2 1 1 1 1 1 1 1 1 2 2 2 2 2 2 1	92,205 - 61,470 4,733,190 (Note 2) 153,675 Note 3 9,239 Note 3 4,329 19,047 19,973 15,368 161,322 450,261 - - - - -	- - - - - - - - - - - - - - - - - - 46,103	- - - - - - - - - - - - - - - - - - -	92,205 - 61,470 4,733,190 153,675 - 9,239 - 4,329 19,047 19,973 15,368 161,322 450,261 - - - - 46,103	1,445 10,189 33,848 (1,058,689) (13,213) (20,466) (41) (23,572) 102 1,496 114 19,711 (4,547) 7,193 (22,193) 3,104 1,409 (38,472) (458)	100.00 100.00 100.00 100.00 100.00 30.00 100.00 30.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00	- - - - - - - - - - - - - - - - - -	100.00 100.00 100.00 100.00 100.00 30.00 100.00 30.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00	1,445 10,189 33,848 (1,058,689) (13,213) (6,140) (41) (7,072) 102 1,496 114 19,711 (4,547) 7,193 (22,193) 1,582 718 (19,606) (458)	(5,717) 175,868 1,255,923 3,305,368 6,921 - 4,981 - 9,012 28,157 29,131 64,766 7,972 302,226 95,652 142,698 8,871 81,603 45,721	- - - - - - - - - - - - - - - - - - -

Note 1: Method of Investment:

Type 1: Direct investment in Mainland China.

Type 2: Indirect investment in Mainland China through a holding company established in other countries.

Note 2: Acer Intellectual (Chongqing) Limited had merged with Acer (Chongqing) Ltd. in 2014, and Acer (Chongqing) Ltd. was the surviving entity from the merger. This amount included the original investment in

Acer Intellectual (Chongqing) Limited of $122,832 (US$ 4,000 thousand).

Note 3: Innovation and Commercialization Accelerator Inc. and Consumer Insights Research (Chongqing) Inc. were reinvested by Acer Cloud Technology(Chongqing) Ltd.

～ 91 ～

Investor Company Name	Accumulated Investment in Mainland China as of December 31, 2023 (Note 4)(Note 5)(Note 6)(Note 7)	Investment Amounts Authorized by Investment Commission, MOEA (Note 4)(Note 5)(Note 6)(Note 7)	Upper Limit on Investment Authorized by Investment Commission, MOEA
The Company and Subsidiaries	$5,768,440 (US$187,683,082)	$8,139,884 (264,840,852.98)	$48,205,239 (Note)

Note 4: In September 2008, AOI had disposed all shares of JNS Technology Co., Ltd., and the proceeds from the disposal of US$ 730,000 had been remitted to AOI in March 2010.

AOI has not yet to report to MOEA, therefore, the amout of US$ 1,645,200 was still included the original investment in JNS Technology Co., Ltd.

Note 5: T-Conn Precision(Zhongshan) Co., Ltd., indirectly invested by AOI, had been dissolved and the related liquidation process has been completed. The liquidation proceeds of US$ 31,549.06 (according to ownership percentage of 19%) has been remitted to Super Elite Ltd., a holding company established in other countries. On March 12, 2010, AOI has obtained MOEA's approval to

withdraw its investment. However, the amount of accumulated investment in Mainland China still included the amount of US$ 57,000 due to the liquidation of capital which has yet to be remitted to Taiwan. Note 6: As a result of the acquisition of WKS, AGM indirectly acquired its investment of WKSH located in Mainland China, and meanwhile accumulated the investments in Mainland China amounting to US$16,033,042. Note 7: AGM made indirect investment in Mainland China through a holding company (WKS) established in other countries.

The above amounts were translated into New Taiwan dollars at the exchange rate of US$1=NT$30.735 as of December 31, 2023.

Note: Calculated based on 60% of the consolidated net equity value.

～ 92 ～

93

ACER INCORPORATED

Statement of Cash and Cash Equivalents

December 31, 2023

(Expressed in Thousands of New Taiwan Dollars)

Item Cash on hand Bank deposits Time deposits (mature within three months)	Description Amount $ 614 Note 1 6,782,871 Interest rate at 3.72%~5.83%; Note 2 11,579,703 $ 18,363,188

Note 1: Foreign currency deposits (in thousands) and their exchange rates were as follows:

CNY	$	8	CNY: NTD=1	:	4.3289
EUR	$	527	EUR: NTD=1	:	32.9284
USD	$	194,434	USD: NTD=1	:	30.7350
JPY	$	13	JPY: NTD=1	:	0.2179
SEK	$	202	SEK: NTD=1	:	3.0511
AUD	$	141	AUD: NTD=1	:	20.9367
NZD	$	91	NZD: NTD=1	:	19.4214
KRW	$	21,295	KRW: NTD=1	:	0.0239
HKD	$	0.7	HKD: NTD=1	:	3.9346

Note 2: Including USD $376,000 and EUR $688.

(Continued)

94

ACER INCORPORATED

Statement of Notes and Accounts Receivable

December 31, 2023

(Expressed in Thousands of New Taiwan Dollars)

Item		Amount
Notes and accounts receivable:
Client A	$	642,895
Client B		427,290
Client C		349,249
Client D		290,215
Client E		271,633
Others (the amount of individual client does not exceed 5% of the account balance)		2,057,197
Less: loss allowance		(1,461)
	$	4,037,018

Statement of Inventories

Item Raw materials Finished goods and merchandise Spare parts Inventories in transit		Amount Carrying Amount Market Value Note $ 12,698,362 13,052,086 Market value at net realizable value 740,248 845,189 Market value at net realizable value 50,213 50,213 Market value at net realizable value 292,150 292,150 Market value at net realizable value $ 13,780,973 14,239,638
		Carrying Amount $ 12,698,362 740,248 50,213 292,150 $ 13,780,973

(Continued)

95

ACER INCORPORATED

Statement of Other Current Assets

December 31, 2023

(Expressed in Thousands of New Taiwan Dollars)

	Item		Amount
Prepaid expenses		$	213,193
Input VAT			248,682
Others			11,886
		$	473,761
	Statement of Other Financial Assets - Current

		Items		Amount
Time deposits	with original	maturities between three months and one year	$	1,239,900

(Continued)

96

Acer Incorporated

Statement of Changes in Financial Assets Measured

at Amortized Cost – Current

December 31, 2023

(Expressed in Thousands of New Taiwan Dollars)

Name USD Fixed Rate Callable Note 1.83 02/23/2024 USD Fixed Rate Callable Note 3.05 04/01/2024	Beginning Balance Quantity Amount - $ - - - $ -	Ad	di	tion Amount - - -	Dedu	c	tions Amount - - -	Other	s	(Note) Amount 307,350 153,675 461,025	Ending	Ending	Balance Amount 307,350 153,675 461,025	Pledged as Collateral Remark
	Quantity	Quantity			Quantity			Quantity			Quantity
	- -	- -			- -			- -			- -

Note: Others include amortization, translation adjustments and reclassification from non-current assets to current assets.

(Continued)

97

Acer Incorporated

Statement of Changes in Financial Assets Measured at Amortized Cost – Non-current

December 31, 2023

(Expressed in Thousands of New Taiwan Dollars)

Name USD Fixed Rate Callable Note 1.83 02/23/2024 USD Fixed Rate Callable Note 3.05 04/01/2024 USD Fixed Rate Callable Note 3.85 05/13/2025 CREDIT AGRICOLE SA Bond 4.375 03/17/2025 UBS Bond 4.125 09/24/2025 09/24/2025 HSBC Bond 4.375 11/23/26 HSBC Bond 3.9 05/25/26 UBS Bond 4.253 03/23/28 MUFG Bond 2.757 09/13/26 SUMIBK Bond 5.52 01/13/28 Citigroup Inc. Bond 3.3 04/27/25 Citigroup Inc. Bond 3.3 04/27/25 MIZUHO Bond 3.477 04/12/26 SUMIBK Bond 3.364 07/12/27 MUFG Bond 3.85 03/01/26 SUMIBK Bond 5.52 01/13/28 MIZUHO Bond 3.477 04/12/26 CREDIT AGRICOLE 5.301 07.12/28 HSBC 5.625 03/17/25 BNP 3.375 01/09/25 P12 Cathay Life Insurance 1A BNP 3.375 01/09/25 SOCGEN 4.677 06/15/27 Corp BNP 3.5 11/16/27 HSBC 5.625 03/17/25 CREDIT AGRICOLE 5.301 07.12/28 SOCGEN 4.677 06/15/27 Corp BNP 3.5 11/16/27 WSTPNZ 4.902 02/15/28 ANZNZ 5.355 08/14/28	Beginning Balance Quantity Amount - $ 307,080 - 153,540 - 153,540 - 61,556 - 61,147 - 60,919 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - $ 797,782	Addi	tion Amount - - - - - - 205,419 204,146 169,074 93,206 59,219 88,829 87,780 144,248 88,646 62,259 58,520 92,100 92,146 88,877 1,500,000 59,497 90,098 86,149 62,019 61,442 59,706 87,709 157,500 161,044 3,859,633	Deduc	tions Amount - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	Others	(Note) Amount (307,080) (153,540) 135 (7) 148 172 4,668 4,099 5,397 772 1,162 1,730 1,634 2,684 1,531 524 1,077 105 111 924 - 573 (470) (240) (532) (478) (316) (2,693) (3,825) (3,924) (445,659)	Ending	Balance Amount - - 153,675 61,549 61,295 61,091 210,087 208,245 174,471 93,978 60,381 90,559 89,414 146,932 90,177 62,783 59,597 92,205 92,257 89,801 1,500,000 60,070 89,628 85,909 61,487 60,964 59,390 85,016 153,675 157,120 4,211,756	Pledged as Collateral Remark
	Quantity	Quantity - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -		Quantity - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -		Quantity - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -		Quantity - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Note: Others include amortization, translation adjustments and reclassification from non-current assets to current assets.

(Continued)

98

ACER INCORPORATED

Statement of Changes in Investments Accounted for Using The Equity Method

For the year ended December 31, 2023

(Expressed in Thousands of New Taiwan Dollars / Thousands of Shares)

Beginning Balance Addition Name of Investee Shares Amount Shares Amount ADSC 66,215 $ 1,268,035 - - Boardwalk 1,263,432 28,595,246 - - AEH 147 19,359,626 - - AHI 191,155 16,338,839 - - Bluechip 1,421 92,038 - - ASCBVI 158,475 3,271,416 - - CCI - 615,773 850 3,087,671 ACSI 13,296 722,725 - - WLII 48,073 1,211,483 - - AGT 39,308 2,232,474 - - ABH 130,308 1,954,777 - - ASBZ 441 7,649 - - AOI 28,970 347,183 5,294 360,013 SEB - 9,163 - - SFT 13,200 53,733 24,000 91,105 HSNC 10,242 125,938 - - AST 11,349 396,941 1,291 116,169 API 22,484 267,573 - - AGM 24,449 799,007 - - AAM 107,719 1,075,017 - - ABI 1,500 5,151 - 10,000 ASSB 30,969 1,404,134 - - ACS 3,985 223,952 - - CHC 5,000 49,513 - - ATBD - - 1 - HRC - - 30,000 300,000 Others - 13,449 - - Subtotal 80,440,835 3,964,958 Less: Treasury stock held by subsidiaries (2,914,856) - Adjustments of unrealized profits or losses resulting from transactions with subsidiaries and associates (484,557) - $ 77,041,422 3,964,958 Note: The amount included cash dividend $611,227 distributed from the investees.	Decrease Shares Amount (note) - (54,783) - - - - - - - (1,710) (158,475) (3,484,991) - (9,187) - (59,830) - (168,256) - (64,859) - (140,410) - - - (43,455) - - (13,200) (44,922) - (10,242) - (34,047) (7,500) (100,946) - (24,449) - - (500) - - - - - - - - - - - - - (4,242,087) (202,082) 11,402 (4,432,767)	Others 782,250 1,509 (14,440) (5,254) (914) 22,847 (12,509) (2,028) (5,857) 30,538 (99,003) - (127,610) - - (523) (7,873) 5,570 11,211 - - - - - - - 362 578,276 - - 578,276	Investment Profit (Loss) 81,371 (134,606) (366,713) (479,802) 1,855 3,215 53,004 114,096 243,192 70,976 247,299 (62) 89,071 102 (8,811) 15,522 36,473 17,009 41,447 (8,148) (12,662) 49,426 11,561 (4,207) (585) 81 - 60,104 - - 60,104	Foreign Currency Translation Differences (18) 81,959 523,765 (103,780) 184 187,513 (198,837) - (1,068) (984) (3,666) - (5,315) (253) - (2,644) (628) - (2,668) - - (55,607) 2,257 - 7 - (16) 420,201 - - 420,201		Ending balance	Ending balance			Market Value or Net Assets Value Unit Price (In Dollars) Total Amount Collateral 31.37 2,076,855 - 22.59 28,544,108 - 132,668 19,502,238 - 82.39 15,750,003 - 64.36 91,453 - - - - 4,159.90 3,535,915 - 192.50 2,559,480 - 56.70 2,725,739 - 40.20 1,580,182 - 15.03 1,958,997 - 17.20 7,587 - 63.80 2,186,043 - - 9,012 - 3.80 91,105 - 58.30 597,109 - 82.80 1,046,592 - 12.63 189,206 - 89.21 1,960,810 - 9.90 1,066,869 - 2.49 2,489 - 45.14 1,397,953 - 59.67 237,770 - 9.06 45,306 - (578.00) 578 - 10.00 300,081 - - - -
	Shares - - - - - (158,475) - - - - - - - - (13,200) - - (7,500) - - (500) - - - - - -					Shares 66,215 1,263,432 147 191,155 1,421 - 850 13,296 48,073 39,308 130,308 441 34,264 - 24,000 10,242 12,640 14,984 24,449 107,719 1,000 30,969 3,985 5,000 1 30,000 -	Percentage of Ownership % 100.00 % 92.02 % 100.00 % 100.00 % 24.18 % - % 100.00 % 59.88 % 58.93 % 63.54 % 100.00 % 66.81 % 43.68 % 100.00 % 100.00 % 63.18 % 56.94 % 59.94 % 69.85 % 100.00 % 100.00 % 100.00 % 100.00 % 41.67 % 100.00 % 60.00 -	Amount 2,076,855 28,544,108 19,502,238 15,750,003 91,453 - 3,535,915 774,963 1,279,494 2,268,145 1,958,997 7,587 619,887 9,012 91,105 128,051 507,035 189,206 824,548 1,066,869 2,489 1,397,953 237,770 45,306 (578) 300,081 13,795 81,222,287 (2,712,774) (473,155) 78,036,358		Unit Price (In Dollars) 31.37 22.59 132,668 82.39 64.36 - 4,159.90 192.50 56.70 40.20 15.03 17.20 63.80 - 3.80 58.30 82.80 12.63 89.21 9.90 2.49 45.14 59.67 9.06 (578.00) 10.00 -

(Continued)

99

ACER INCORPORATED

Statement of Changes in Financial Assets Measured at Fair Value through Other Comprehensive Income

－ Non-current

For the year ended December 31, 2023

(Expressed in Thousands of New Taiwan Dollars / Thousands of Shares)

Name of Financial Instrument Common Stock of Qisda Common Stock of Wistron Common Stock of WPG Holdings Preferred stock B of SKFH Stock of Pell Bio-med Technology Co., Ltd. Stock of CellMax Life Inc. Stock of CT Ambi Investment and Consulting Inc. Common Stock of FocalTech Preferred stock B of CTBC Preferred stock A of CTFH Preferred stock B of CTFH Preferred stock A of FBFH Preferred stock B of FBFH Preferred stock C of FBFH Preferred stock A of UBOT Preferred stock E of TSFH Common Stock of Apacer Technology Stock of Fortune Electric Value Company Limited Stock of Starbit Innovation Co., Ltd. Stock of GreenHarvest Co., Ltd. Common Stock of Welldone Stock of C-LiFe Technologies, Inc.	Beginning b	a	lance Amount $ 2,519,867 1,611,590 192,956 245,197 120,000 17,421 20,000 511,735 50,701 14,716 64,265 15,342 56,982 385,700 1,551 17,286 455,400 80,000 35,040 49,995 - - $ 6,465,744	Additio	n Amount - - - - - - - - - - - - - - - - 36,317 - - - 400,500 330,000 766,817	Decrea	se		Unrealized Gain (Loss) 1,776,886 4,558,378 134,387 (49,518) - (17,421) (3,028) 470,692 86 780 6,003 178 2,378 (700) (12) (168) 233,132 (52,599) (35,040) - 141,500 - 7,165,914	Ending B	alance Amount Collateral 4,296,753 - 1,884,147 - 327,343 - 195,679 - 120,000 - - - 16,972 - 982,427 - 50,787 - 15,496 - 70,268 - 15,520 - 59,360 - 385,000 - 1,539 - 17,118 - 724,849 - 27,401 - - - 49,995 - 542,000 - 330,000 - 10,112,654
	Shares 89,516 54,816 4,012 6,830 2,400 600 2,000 8,733 855 260 1,177 254 991 7,000 30 335 11,000 2,500 2,920 1,111 - -			Shares - - - - - - - - - - - - - - - - 710 - - - 10,000 11,000		Shares - (35,707) - - - - - - - - - - - - - - - - - - - -	Amount - (4,285,821) - - - - - - - - - - - - - - - - - - - -			Shares 89,516 19,109 4,012 6,830 2,400 600 2,000 8,733 855 260 1,177 254 991 7,000 30 335 11,710 2,500 2,920 1,111 10,000 11,000
							(4,285,821)

(Continued)

100

ACER INCORPORATED

Statement of Accounts Payable

For the year ended December 31, 2023

(Expressed in Thousands of New Taiwan Dollars)

	Vendor Name		Amount
Vendor A		$	7,486,275
Vendor B			1,749,731
Vendor C			4,252,506
Vendor D			1,803,829
Others (the amount of	individual vendor does not exceed 5% of the account balance)		15,663,827
		$	30,956,168

Statement of Other Payable

	Item		Amount
Royalty payable		$	3,759,292
Accrued for price difference			5,523,801
Accrued product development costs			5,186,877
Salaries and bonus payable			1,997,419
Others (the amount of individual item	does not exceed 5% of the account balance)		4,796,788
		$	21,264,177

(Continued)

101

ACER INCORPORATED

Statement of Other Non-Current Liabilities

December 31, 2023

(Expressed in Thousands of New Taiwan Dollars)

	Item		Amount
Defined benefit liabilities		$	604,237
Guarantee deposits			8,095
		$	612,332

Statement of Lease Liabilities

Item	Description Buildings Other equipments	Lease terms 2021/04~2027/11 2023/09~2026/09	Discount rate Ending balance 0.90%~2.24% $ 78,522 2.24% 3,799 $ 82,321 $ 54,885 $ 27,436
Lease liabilities Lease liabilities Lease liabilities—current Lease liabilities—non-current

(Continued)

102

ACER INCORPORATED

Statement of Cost of Revenue

For the year ended December 31, 2023

(Expressed in Thousands of New Taiwan Dollars)

Item Cost of goods sold from purchase Beginning inventory Net purchase for the period Ending inventory Reclassified to property, plant and equipment Royalty for software and technology Reversal of write-downs of inventories ODM stock provision Others Cost of product development and repair and maintenance Cost of revenue	Amount	Amount
	Subtotal $ 15,005,479 132,951,417 (14,968,259) (4,195) 10,891,602 (1,299,501) 126,517 755,934	Total
		$ 143,458,994 34,776 $ 143,493,770

(Continued)

103

ACER INCORPORATED

Statement of Operating Expenses

For the year ended December 31, 2023

(Expressed in Thousands of New Taiwan Dollars)

Item Salaries Depreciation Amortization NRE and test inspection expense Professional service expense Others	Selling expenses		Administrative expenses 469,852 62,292 26,619 - 364,936 130,965 1,054,664	Research and development expenses
	$ 1,140,342 63,000 134 - - 197,502 $ 1,400,978			679,164 25,292 1,853 619,196 - 287,375 1,612,880

Statement of Financial Assets Measured at Fair Value through Profit or Loss – Current: Note 6(b). Statement of Receivable from Related Parties and Other Receivable from Related Parties: Note 7. Statement of Other Receivables: Note 6(d).

Statement of Changes in Property, Plant and Equipment: Note 6(i). Statement of Changes in Right-of-use Assets: Note 6(j). Statement of Changes in Investment Property: Note 6(k). Statement of Changes in Intangible Assets: Note 6(l).

Statement of Financial Liabilities Measured at Fair Value through Profit or Loss – Current: Note 6(b). Statement of Long-term debt: Note 6(m).

Statement of Payables to Related Parties and Other Payables to Related Parties: Note 7. Statement of Bonds Payable: Note 6(n).

Statement of Provisions – Current: Note 6(p). Statement of Deferred Tax Assets/Liabilities: Note 6(s). Statement of Revenue: Note 6(v). Statement of Other Operating Income and Expenses: Note 6(x). Statement of Other Income: Note 6(y). Statement of Other Gains and Losses: Note 6(y). Statement of Financial Costs: Note 6(y).