Altek — Audit Report / Information 2022

Nov 15, 2022

ALTEK CORPORATION AND

SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REPORT

DECEMBER 31, 2022 AND 2021

(Stock Code ： 3059)

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INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

PWCR22000228 (In Thousands of New Taiwan Dollars)

To the Board of Directors and Shareholders of ALTEK CORPORATION

Opinion

We have audited the accompanying consolidated balance sheets of ALTEK CORPORATION AND SUBSIDIARIES (the “Group”) as at December 31, 2022 and 2021, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2022 and 2021, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect as endorsed by the Financial Supervisory Commission.

Basis for opinion

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

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Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Group’s 2022 consolidated financial statements. These matters were addressed in the context of our audit of the consolidated financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

Key audit matters for the Group’s 2022 consolidated financial statements are stated as follows:

Allowance for inventory valuation losses

Description

Please refer to Note 4(14) for description of accounting policy on inventory valuation. Please refer to Note 5(2) for accounting estimates and assumption uncertainty in relation to inventory valuation. Please refer to Note 6(6) for the details of inventories.

The Group is primarily engaged in manufacturing and sales of automobile cameras, medical and digital image application products. The Group measures inventories sold at the lower of cost and net realisable value. For inventory that is over a certain age and individually identified obsolete or damaged inventory, the Group recognises losses at net realisable value. The value of inventories is significant, involves various types of inventory, and the individual identification of inventory usually involves management judgement which is an area that also needs to be assessed using our judgement during the audit process. Thus, we identified valuation of allowance for inventory losses as one of the key audit matters. How our audit addressed the matter

We performed the following audit procedures on the above key audit matter:

• A. Obtained an understanding and assessed the provision policy on inventory valuation losses.

• B. Obtained the statement of individually identified obsolete inventory prepared by management and checked the accuracy of stock age analysis report and relevant information.

• C. Checked the accuracy of net realisable value of inventory, assessed the consistency between valuation of market value decline and its provision policy, and assessed the reasonableness of allowance for valuation losses determined by the Group.

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Recognition of sales revenue

Description

Please refer to Note 4(29) for accounting policies of revenue recognition. Please refer to Note 6(22) for the details of sales revenue. Sales revenue is the main operating activity and relevant to the Group’s

financial performance. The Group have many customers, the recognition of sales revenue require judgment in determining the transfer of control of goods. Therefore, we identified the recognition of sales revenue as one of the key audit matters.

How our audit addressed the matter

We performed the following audit procedures on the above key audit matter:

• A. Assessed the appropriation of policies on sales revenue recognition.

• B. Assessed and tested the design of internal controls that are relevant to sales revenue recognition and the effectiveness of execution.

• C. Sampled and validated transaction terms, performance obligations, prices, orders, shipping documents and assessed appropriateness of amount and timing of revenue recognition.

Other matter – Parent company only financial reports

We have audited and expressed an unqualified opinion on the parent company only financial statements of Altek Corporation as at and for the years ended December 31, 2022 and 2021.

Responsibilities of management and those charged with governance for the

consolidated financial statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect as endorsed by the Financial Supervisory Commission, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

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In preparing the consolidated financial statements, management is responsible for assessing the Group’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 Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance, including the audit committee, are responsible for overseeing the Group’s financial reporting process.

Auditor’s responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial 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 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 consolidated financial statements.

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

• A. Identify and assess the risks of material misstatement of the consolidated 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.

• B. 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 Group’s internal control.

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

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• D. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated 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 auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.

• E. Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

• F. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group 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.

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From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s 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.

Hsieh, Chih-Cheng[Chiang, Tsai-Yen ]

For and on behalf of PricewaterhouseCoopers, Taiwan March 10, 2023

------------------------------------------------------------------------------------------------------------------------------------------------The accompanying consolidated financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying consolidated financial statements and independent auditors’ report are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

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ALTEK CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2022 AND 2021

(Expressed in thousands of New Taiwan dollars)

Assets	Notes 6(1) 6(4) 6(5) 6(5) 6(6) 6(2) 6(3) 6(4) 6(7) and 8 6(8) 6(9) and 8 6(10) 6(29)	December 31, 2022 AMOUNT % $ 5,359,473 33 352,755 2 21,033 - 2,205 - 2,178,796 14 47,678 - 23,242 - 2,419,666 15 389,882 3 5,952 - 10,800,682 67 83,601 1 74,938 - 617,322 4 2,662,333 16 128,203 1 1,362,047 8 313,503 2 160,925 1 33,381 - 5,436,253 33 $ 16,236,935 100	December 31, 2021	December 31, 2021
		AMOUNT $ 5,359,473 352,755 21,033 2,205 2,178,796 47,678 23,242 2,419,666 389,882 5,952 10,800,682 83,601 74,938 617,322 2,662,333 128,203 1,362,047 313,503 160,925 33,381 5,436,253 $ 16,236,935	AMOUNT $ 5,368,653 130,245 - 1,302 1,451,230 110,440 3,390 2,688,960 179,933 4,863 9,939,016 79,184 101,860 1,302,879 2,652,307 135,733 1,377,915 491,634 228,629 33,436 6,403,577 $ 16,342,593	%
Current assets 1100 Cash and cash equivalents 1136 Current financial assets at amortised cost 1140 Current contract assets 1150 Notes receivable, net 1170 Accounts receivable, net 1200 Other receivables 1220 Current income tax assets 130X Inventories, net 1410 Prepayments 1470 Other current assets 11XX Current assets Non-current assets 1510 Non-current financial assets at fair value through profit or loss 1517 Non-current financial assets at fair value through other comprehensive income 1535 Non-current financial assets at amortised cost 1600 Property, plant and equipment 1755 Right-of-use assets 1760 Investment property 1780 Intangible assets 1840 Deferred income tax assets 1900 Other non-current assets 15XX Non-current assets 1XXX Total assets				33 1 - - 9 1 - 16 1 -
				61
				1 1 8 16 1 8 3 1 -
				39
				100

(Continued)

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ALTEK CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2022 AND 2021

(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity

December 31, 2022 December 31, 2021 Notes AMOUNT % AMOUNT % 6(11) $ 2,213,000 14 $ 2,510,000 15 6(12) 399,669 2 599,818 4 6(22) 439,481 3 262,350 2 1,635,048 10 1,972,344 12 6(14) 790,070 5 561,152 3 65,272 - 79,959 1 6(17) 49,839 - 25,245 - 15,388 - 13,925 - 6(13) 500,000 3 - - 163,975 1 159,520 1 6,271,742 38 6,184,313 38 6(17) 136,614 1 135,035 1 494,336 3 483,178 3 95,978 1 104,610 1 6(15) 41,337 - 43,092 - 768,265 5 765,915 5 7,040,007 43 6,950,228 43 6(18) 2,788,180 17 2,792,011 17 6(19) 2,046,625 13 2,392,215 14 1,441,002 9 1,418,410 9 774,832 5 651,556 4 2,366,630 15 2,266,140 14 ( 516,107) ( 4) ( 787,359) ( 5 ) 6(18) ( 38,101) - ( 131,461) ( 1 ) 8,863,061 55 8,601,512 52 4(3) 333,867 2 790,853 5 9,196,928 57 9,392,365 57 $ 16,236,935 100 $ 16,342,593 100

Current liabilities 2100 Short-term borrowings 2110 Short-term notes and bills payable 2130 Current contract liabilities 2170 Accounts payable 2200 Other payables 2230 Current income tax liabilities 2250 Provisions - current 2280 Current lease liabilities 2320 Long-term liabilities, current portion 2399 Other current liabilities, others 21XX Current liabilities Non-current liabilities 2550 Provisions - non-current 2570 Deferred income tax liabilities 2580 Non-current lease liabilities 2600 Other non-current liabilities 25XX Non-current liabilities 2XXX Total liabilities Equity attributable to owners of the parent Share capital 3110 Common stock Capital surplus 3200 Capital surplus Retained earnings 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings Other equity interest 3400 Other equity interest 3500 Treasury stocks 31XX Equity attributable to owners of the parent 36XX Non-controlling interest 3XXX Total equity 3X2X Total liabilities and equity

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

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ALTEK CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2022 AND 2021

(Expressed in thousands of New Taiwan dollars)

Items

YearendedDecember 31 2022 2021 Notes AMOUNT % AMOUNT % 6(22) $ 14,028,161 100 $ 9,085,774 100 6(6)(28) ( 11,130,533) ( 79) ( 6,927,052) ( 76) 2,897,628 21 2,158,722 24 6(28) ( 91,642) ( 1) ( 51,806) - ( 629,075) ( 5) ( 477,188) ( 5) ( 1,733,623) ( 12) ( 1,397,350) ( 16) 12(2) ( 287) - 96 - ( 2,454,627) ( 18) ( 1,926,248) ( 21) 443,001 3 232,474 3 6(23) 81,015 - 71,793 1 6(24) 72,107 - 66,143 1 6(25) 115,171 1 52,814 - 6(26) ( 42,187) - ( 25,852) - 226,106 1 164,898 2 669,107 4 397,372 5 6(29) ( 181,066) ( 1) ( 117,111) ( 2) $ 488,041 3 $ 280,261 3

4000 Operating revenue 5000 Operating costs 5900 Net operating margin Operating expenses 6100 Selling and marketing expenses 6200 General and administrative expenses 6300 Research and development expenses 6450 Expected credit (loss) gains 6000 Total operating expenses 6900 Operating profit Non-operating income and expenses 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Finance costs 7000 Total non-operating income and expenses 7900 Profit before income tax 7950 Income tax expense 8200 Profit for the year

(Continued)

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ALTEK CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2022 AND 2021

(Expressed in thousands of New Taiwan dollars)

Items

Year ended December 31 2022 2021 Notes AMOUNT % AMOUNT % 6(15) $ 206 - $ 3,433 - 6(3) ( 27,284) - ( 21,154) - 6(29) ( 41) - ( 942) - ( 27,119) - ( 18,663) - 389,001 3 ( 120,930) ( 1) 6(29) ( 71,676) - 25,860 - 317,325 3 ( 95,070) ( 1) $ 290,206 3 ($ 113,733) ( 1) $ 778,247 6 $ 166,528 2 $ 456,742 3 $ 224,734 2 31,299 - 55,527 1 $ 488,041 3 $ 280,261 3 $ 716,327 6 $ 102,633 1 61,920 - 63,895 1 $ 778,247 6 $ 166,528 2 $ 1.67 $ 0.85 $ 1.65 $ 0.83

Other comprehensive income Components of other comprehensive income that will not be reclassified to profit or loss 8311 Gains on remeasurements of defined benefit plans 8316 Unrealised losses from financial assets measured at fair value through other comprehensive income 8349 Income tax related to components of other comprehensive income that will not be reclassified to profit or loss 8310 Components of other comprehensive loss that will not be reclassified to profit or loss Components of other comprehensive income that may be reclassified to profit or loss 8361 Currency translation differences of foreign operations 8399 Income tax relating to the components of other comprehensive income 8360 Components of other comprehensive income (loss) that may be reclassified to profit or loss 8300 Total other comprehensive income (loss) for the year 8500 Total comprehensive income for the year Profit, attributable to: 8610 Owners of the parent 8620 Non-controlling interest Profit for the year Comprehensive income attributable to: 8710 Owners of the parent 8720 Non-controlling interest Total comprehensive income for the year 9750 Basic earnings per share (in dollars) 9850 Diluted earnings per share (in dollars)

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

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ALTEK CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2022 AND 2021

(Expressed in thousands of New Taiwan dollars)

2021 Balance at January 1, 2021 Profit for the year Other comprehensive income (loss) for the year Total comprehensive income (loss) Appropriation of 2020 earnings Legal reserve Special reserve Cash dividends Share-based payment transactions Retirement of employee restricted shares Treasury stock transferred to employees Changes in ownership interests in subsidiaries Non-controlling interest Proceeds from disposal of financial assets at fair value through other comprehensive income Balance at December 31, 2021 2022 Balance at January 1, 2022 Profit for the year Other comprehensive income (loss) for the year Total comprehensive income (loss) Appropriation of 2021 earnings Legal reserve Special reserve Cash dividends Share-based payment transactions Retirement of employee restricted shares Treasury stock transferred to employees Changes in ownership interests in subsidiaries Non-controlling interest Balance at December 31, 2022	Notes								Equity attribu	Equity attribu	table to owners of th	e parent	e parent				Non-controlling interest		Total equity
			Common stock		Capital surplus				Retained earnings			Other equityinterest		Treasury stocks		Total
							Legal reserve		Special reserve		Unappropriated retained earnings	Currency translation differences of foreign operations	Other
	6(16)(19) 6(16)(18)(19) 6(18)(19) 6(19) 6(3)(3) 6(16)(19) 6(16)(18)(19) 6(18)(19) 6(19)	$ 2,794,973 - - - - - - - ( 2,962 ) - - - - $ 2,792,011 $ 2,792,011 - - - - - - - ( 3,831 ) - - - $ 2,788,180		$ 2,335,226 - - - - - - 69,940 ( 3,722 ) ( 227 ) ( 9,002 ) - - $ 2,392,215 $ 2,392,215 - - - - - - 50,109 ( 4,917 ) ( 341 ) ( 390,441 ) - $ 2,046,625			$ 1,402,467 - - - 15,943 - - - - - - - - $ 1,418,410 $ 1,418,410 - - - 22,592 - - - - - - - $ 1,441,002		$ 592,325 - - - - 59,231 - - - - - - - $ 651,556 $ 651,556 - - - - 123,276 - - - - - - $ 774,832	$ 2,249,655 224,734 2,746 227,480 ( 15,943 ) ( 59,231 ) ( 134,249 ) - - - - - ( 1,572 ) $ 2,266,140 $ 2,266,140 456,742 165 456,907 ( 22,592 ) ( 123,276 ) ( 190,401 ) - - - ( 20,148 ) - $ 2,366,630		($ 550,536 ) - ( 103,438 ) ( 103,438 ) - - - - - - - - - ($ 653,974 ) ($ 653,974 ) - 286,704 286,704 - - - - - - - - ($ 367,270 )	($ 147,162 ) - ( 21,409 ) ( 21,409 ) - - - 26,930 6,684 - - - 1,572 ($ 133,385 ) ($ 133,385 ) - ( 27,284 ) ( 27,284 ) - - - 3,084 8,748 - - - ($ 148,837 )	($ 209,287 ) - - - - - - - - 77,826 - - - ($ 131,461 ) ($ 131,461 ) - - - - - - - - 93,360 - - ($ 38,101 )	$ 8,467,661 224,734 ( 122,101 ) 102,633 - - ( 134,249 ) 96,870 - 77,599 ( 9,002 ) - - $ 8,601,512 $ 8,601,512 456,742 259,585 716,327 - - ( 190,401 ) 53,193 - 93,019 ( 410,589 ) - $ 8,863,061		$ 556,192 55,527 8,368 63,895 - - - 422 - - 9,002 161,342 - $ 790,853 $ 790,853 31,299 30,621 61,920 - - - 6,221 - - 406,280 ( 931,407 ) $ 333,867	$ 9,023,853 280,261 ( 113,733 ) 166,528 - - ( 134,249 ) 97,292 - 77,599 - 161,342 - $ 9,392,365 $ 9,392,365 488,041 290,206 778,247 - - ( 190,401 ) 59,414 - 93,019 ( 4,309 ) ( 931,407 ) $ 9,196,928

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

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ALTEK CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2022 AND 2021

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax Adjustments Adjustments to reconcile profit (loss) Depreciation Amortisation Expected credit loss (gains) Net gain on financial assets at fair value through profit or loss Interest expense Interest income Dividend income Share-based payment compensation cost (Gain) loss on disposal of property, plant and equipment Changes in operating assets and liabilities Changes in operating assets Current contract assets Notes receivable Accounts receivable Other receivables Inventories Prepayments Other current assets Changes in operating liabilities Current contract liabilities Accounts payable Other payables Provisions Other current liabilities Other non-current liabilities Cash inflow (outflow) generated from operations Interest received Dividends received Interest paid Income tax paid Net cash flows from (used in) operating activities

Year ended December 31 Notes 2022 2021 $ 669,107 $ 397,372 6(7)(7)(8)(8)(9)( 9) 208,092 193,256 6(10)(10) 190,110 131,008 12(2) 287 ( 96 ) 6(2)(2) ( 4,417 ) ( 38,686 ) 42,187 25,852 ( 81,015 ) ( 71,793 ) ( 2,289 ) ( 1,526 ) 6(16) 59,414 97,292 ( 660 ) 26 ( 21,037 ) 4,414 ( 2,217 ) - ( 726,198 ) ( 178,257 ) 12,853 ( 23,189 ) 310,714 ( 1,584,612 ) ( 138,989 ) ( 44,724 ) ( 1,056 ) ( 344 ) 108,257 209,160 ( 370,457 ) 681,350 244,717 52,310 26,156 ( 9,405 ) 4,109 ( 6,935 ) ( 1,735 ) 19 525,933 ( 167,508 ) 132,622 53,041 2,289 1,526 ( 36,420 ) ( 21,580 ) ( 208,634 ) ( 76,855 ) 415,790 ( 211,376 )

(Continued)

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ALTEK CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2022 AND 2021

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of financial assets at fair value through profit or loss Proceeds from disposal of financial assets at fair value through profit or loss Acquisition of financial assets at amortised cost Proceeds from repayments of financial assets at amortised cost Acquisition of financial assets at fair value through other comprehensive income Proceeds from disposal of financial assets at fair value through other comprehensive income Proceeds from capital reduction of financial assets at fair value through other comprehensive income Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Acquisition of intangible assets Decrease in guarantee deposits paid Net cash flows from (used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from short-term borrowings Repayment of short-term borrowings Proceeds from issuance of short-term notes and bills payable Repayment of short-term notes and bills payable Proceeds from long-term borrowings Repayment of long-term borrowings (Decrease)increase in guarantee deposits received Repayment of principal portion of lease liabilities Cash dividends paid Treasury stock transferred to employees Changes in non-controlling interest Net cash flows (used in) from financing activities Effect of exchange rate Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

Year ended December 31 Notes 2022 2021 $ - ($ 151,630 ) - 506,419 ( 842,513 ) - 1,330,726 398,571 - ( 86,694 ) 1,292 2,325 1,566 3,056 ( 134,922 ) ( 392,165 ) 737 432 ( 29,497 ) ( 306,120 ) 138 1,294 327,527 ( 24,512 ) 16,934,296 16,310,000 ( 17,231,296 ) ( 16,130,000 ) 3,856,240 3,097,194 ( 4,060,000 ) ( 2,800,000 ) 500,000 - - ( 250,000 ) ( 278 ) 9,841 ( 15,956 ) ( 14,253 ) ( 190,401 ) ( 134,249 ) 93,019 77,599 ( 931,407 ) 161,342 ( 1,045,783 ) 327,474 293,286 ( 96,339 ) ( 9,180 ) ( 4,753 ) 6(1)(1) 5,368,653 5,373,406 6(1)(1) $ 5,359,473 $ 5,368,653

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

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ALTEK CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2022 AND 2021

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

1. HISTORY AND ORGANIZATION

Altek Corporation (the “Company”) was incorporated as a company limited by shares under the provisions of the Company Act of the Republic of China (R.O.C.). The Company and its subsidiaries (collectively referred herein as the “Group”) are primarily engaged in the development, manufacturing and sale of automobile cameras, medical and digital image technology application products, and related export and import trade.

The Company was listed in the Taiwan Stock Exchange on December 24, 2002, as approved by the TaiTz (91) Letter No. 024976 of the former Securities and Futures Commission, Ministry of Finance, R.O.C., dated September 27, 2002.

1. THE DATE OF AUTHORISATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORISATION

These consolidated financial statements were authorized for issuance by the Board of Directors on March 10, 2023.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

• (1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRSs”) that came into effect as endorsed by the Financial Supervisory Commission (“FSC”)

New standards, interpretations and amendments that came into effect as endorsed by the FSC effective from 2022 are as follows:

New Standards,Interpretations andAmendments	Effective date by International Accounting Standards Board ("IASB")
Amendments to IFRS 3, ‘Reference to the conceptual framework’ Amendments to IAS 16, ‘Property, plant and equipment: proceeds before intended use’ Amendments to IAS 37, ‘Onerous contracts—cost of fulfilling a contract’ Annual improvements to IFRS Standards 2018–2020	January 1, 2022 January 1, 2022 January 1, 2022 January 1, 2022

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

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(2) Effect of new issuances of or amendments to IFRSs that came into effect as endorsed by the FSC but

not yet adopted by the Group

New standards, interpretations and amendments that came into effect as endorsed by the FSC effective from 2023 are as follows:

Effective date by New Standards, Interpretations and Amendments IASB Amendments to IAS 1, ‘Disclosure of accounting policies’ January 1, 2023 Amendments to IAS 8, ‘Definition of accounting estimates’ January 1, 2023 Amendments to IAS 12, ‘Deferred tax related to assets and liabilities January 1, 2023 arising from a single transaction’

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

(3) IFRSs issued by IASB but not yet endorsed by the FSC

New standards, interpretations and amendments issued by IASB but not yet included in the IFRSs as endorsed by the FSC are as follows:

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----- Start of picture text -----

Effective date by
New Standards, Interpretations and Amendments IASB
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New Standards, Interpretations and Amendments	Effective date by IASB
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between	To be determined by
an investor and its associate or joint venture’	IASB
Amendment to IFRS 16,‘Lease liability in a sale and leaseback’	January 1, 2024
IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendments to IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendment to IFRS 17,‘Initial application of IFRS 17 and IFRS 9 –	January 1, 2023
comparative information’
Amendments to IAS 1, ‘Classification of liabilities as current or non-current’	January 1, 2024
Amendments to IAS 1, ‘Non-current liabilities with covenants’	January 1, 2024

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these consolidated financial statements

are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

The consolidated financial statements of the Group have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect as endorsed by the FSC (collectively referred herein as the “IFRSs”).

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(2) Basis of preparation

• A. Except for the following items, the consolidated financial statements have been prepared under the historical cost convention:

  • (a) Financial assets (including derivative instruments) at fair value through profit or loss.

  • (b) Financial assets at fair value through other comprehensive income.

  • (c) Defined benefit liabilities recognised based on the net amount of pension fund assets less present value of defined benefit obligation.

• B. The preparation of financial statements in conformity with IFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.

• (3) Basis of consolidation

• A. Basis for preparation of consolidated financial statements:

  • (a) All subsidiaries are included in the Group’s consolidated financial statements. Subsidiaries are all entities controlled by the Group. The Group controls an entity when the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases when the Group loses control of the subsidiaries.

  • (b) Inter-company transactions, balances and unrealised gains or losses on transactions between companies within the Group are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Group.

  • (c) Profit or loss and each component of other comprehensive income are attributed to the owners of the parent and to the non-controlling interests. Total comprehensive income is attributed to the owners of the parent and to the non-controlling interests even if this results in the noncontrolling interests having a deficit balance.

  • (d) Changes in a parent’s ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transactions with non-controlling interests) are accounted for as equity transactions, i.e. transactions with owners in their capacity as owners. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity.

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• (e) When the Group loses control of a subsidiary, the Group remeasures any investment retained in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial recognition of a financial asset or the cost on initial recognition of the associate or joint venture. Any difference between fair value and carrying amount is recognised in profit or loss. All amounts previously recognised in other comprehensive income in relation to the subsidiary are reclassified to profit or loss on the same basis as would be required if the related assets or liabilities were disposed of. That is, when the Group loses control of a subsidiary, all gains or losses previously recognised in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit or loss when the related assets or liabilities are disposed of.

• B. Subsidiaries included in the consolidated financial statements:

(Blank below)

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Name of Investor	Name of Subsidiaries	Main Business Activities	Ownership (%)	Ownership (%)	Note
				December 31,2021
					- - - - Note 5 - Note 6 Note 2 - Note 6 - Note 5 Note 3 - - - - - - Note 4 Note 4 - - - -

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• C. Subsidiaries not included in the consolidated financial statements: None.

• D. Adjustments for subsidiaries with different balance sheet dates: None.

• E. Significant restrictions: None.

• F. Subsidiaries that have non-controlling interests that are material to the Group: As of December 31, 2022 and 2021, the non-controlling interest amounted to $333,867 and $790,853, respectively. The information of non-controlling interest and respective subsidiaries is as follows:

==> picture [468 x 65] intentionally omitted <==

----- Start of picture text -----

Non-controlling interest
December 31, 2022 December 31, 2021
Name of Principal place Ownership Ownership
subsidiary of business Amount (%) Amount (%) Description
----- End of picture text -----

Altek	Republic of China $ 37,686 28.57 $ 555,009 50	Note
Semiconductor
(Cayman) Co.,
Ltd.
Altek Medical	Republic of China 251,350 22.30 205,505 22.30	Note
Holding
(Cayman) Co.,
Ltd.
Altek Optical	Republic of China 44,831 25 30,339 25
Technology
(Kunshan) Co.,
Ltd.

Note : The country of registration is Cayman Islands.

Summarised financial information of the subsidiaries:

Balance sheets

Balance sheets
		AltekSemiconductor(Cayman) Co.,Ltd.
		December31,2022			December31,2021
Current assets		$	367,975		$	1,023,058
Non-current assets			298,856			475,386
Current liabilities	(		534,877)	(		388,234)
Non-current liabilities	(		47)	(		193)
Total net assets		$	131,907		$	1,110,017
		Altek	Medical Holding (Cayman) Co.,Ltd.
		December31,2022			December31,2021
Current assets		$	2,267,139		$	1,807,687
Non-current assets			427,181			41,966
Current liabilities	(		1,442,522)	(		818,234)
Non-current liabilities	(		124,669)	(		109,870)
Total net assets		$	1,127,129		$	921,549

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	AltekOptical Technology (Kunshan) Co.,Ltd.	AltekOptical Technology (Kunshan) Co.,Ltd.	AltekOptical Technology (Kunshan) Co.,Ltd.	AltekOptical Technology (Kunshan) Co.,Ltd.	AltekOptical Technology (Kunshan) Co.,Ltd.
	December31,2022			December31,2021
Current assets	$	287,309		$	148,247
Non-current assets		87,677			88,985
Current liabilities	(	195,661)	(		115,878)
Non-current liabilities		-			-
Total net assets	$	179,325		$	121,354
Statements of comprehensive income

Statements of comprehensive income
			AltekSemiconductor	(Cayman) Co. ,Ltd.
			For the year ended			For the year ended
		December31,2022			December31,2021
Revenue		$	659,920	$		755,409
(Loss) profit before income tax	(		153,685)			19,884
Income tax expense			-	(		719)
(Loss) profit for the year	(		153,685)			19,165
Other comprehensive income (loss), net of tax			59,540	(		21,533)
Total comprehensive (loss) income for the year	($		94,145)	($		2,368)
		Altek Medical Holding				(Cayman) Co.,Ltd.
			For the year ended			For the year ended
		December31,2022			December31,2021
Revenue		$	3,349,205	$		2,795,867
Profit before income tax			433,576			286,661
Income tax expense	(		76,181)	(		60,711)
Profit for the year			357,395			225,950
Other comprehensive income, net of tax			8,946			23,729
Total comprehensive income for the year		$	366,341	$		249,679
	AltekOptical Technology					(Kunshan) Co.,Ltd.
			For the year ended			For the year ended
		December31,2022			December31,2021
Revenue	$		426,613	$		250,987
Profit before income tax			73,020			36,824
Income tax expense	(		16,634)			-
Profit for the year			56,386			36,824
Other comprehensive income (loss), net of tax			1,584	(		3,305)
Total comprehensive income for the year	$		57,970	$		33,519

~21~

(4) Foreign currency translation

Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The consolidated financial statements are presented in New Taiwan Dollar, which is the Company’s functional and the Group’s presentation currency.

• A. Foreign currency transactions and balances

• (a) Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognised in profit or loss in the period in which they arise.

• (b) Monetary assets and liabilities denominated in foreign currencies at the period end are retranslated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognised in profit or loss.

• (c) Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in other comprehensive income. However, nonmonetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.

• (d) All foreign exchange gains and losses are presented in the statement of comprehensive income within ‘other gains and losses’.

• B. Translation of foreign operations

• (a) The operating results and financial position of all the group entities, associates and joint arrangements that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

  • i. Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;

  • ii. Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and

  • iii. All resulting exchange differences are recognised in other comprehensive income.

• (b) When the foreign operation partially disposed of or sold is an associate or joint arrangement, exchange differences that were recorded in other comprehensive income are proportionately reclassified to profit or loss as part of the gain or loss on sale. In addition, even when the Group retains partial interest in the former foreign associate or joint arrangement after losing significant influence over the former foreign associate, or losing joint control of the former joint arrangement, such transactions should be accounted for as disposal of all interest in these

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foreign operations.

• (c) When the foreign operation partially disposed of or sold is a subsidiary, cumulative exchange differences that were recorded in other comprehensive income are proportionately transferred to the non-controlling interest in this foreign operation. In addition, even when the Group retains partial interest in the former foreign subsidiary after losing control of the former foreign subsidiary, such transactions should be accounted for as disposal of all interest in the foreign operation.

• (d) Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing exchange rates at the balance sheet date.

(5) Classification of current and non-current items

• A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets:

• (a) Assets arising from operating activities that are expected to be realised, or are intended to be sold or consumed within the normal operating cycle;

• (b) Assets held mainly for trading purposes;

• (c) Assets that are expected to be realised within twelve months from the balance sheet date;

• (d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities more than twelve months after the balance sheet date.

• B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities:

• (a) Liabilities that are expected to be settled within the normal operating cycle;

• (b) Liabilities arising mainly from trading activities;

• (c) Liabilities that are to be settled within twelve months from the balance sheet date;

• (d) Liabilities for which the repayment date cannot be extended unconditionally to more than twelve months after the balance sheet date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

(6) Cash equivalents

• Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Time deposits that meet the definition above and are held for the purpose of meeting short-term cash commitments in operations are classified as cash equivalents.

(7) Financial assets at fair value through profit or loss

• A. Financial assets at fair value through profit or loss are financial assets that are not measured at amortised cost or fair value through other comprehensive income.

• B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognised and derecognised using settlement date accounting.

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• C. At initial recognition, the Group measures the financial assets at fair value and recognises the transaction costs in profit or loss. The Group subsequently measures the financial assets at fair value, and recognises the gain or loss in profit or loss.

• D. The Group recognises the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.

(8) Financial assets at fair value through other comprehensive income

• A. Financial assets at fair value through other comprehensive income comprise equity securities which are not held for trading, and for which the Group has made an irrevocable election at initial recognition to recognise changes in fair value in other comprehensive income.

• B. On a regular way purchase or sale basis, financial assets at fair value through other comprehensive income are recognised and derecognised using settlement date accounting.

• C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs. The Group subsequently measures the financial assets at fair value:

  • The changes in fair value of equity investments that were recognised in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment. Dividends are recognised as revenue when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.

• (9) Financial assets at amortised cost

The Group’s time deposits which do not fall under cash equivalents are those with a short maturity period and are measured at initial investment amount as the effect of discounting is immaterial.

• (10) Accounts and notes receivable

• A. Accounts and notes receivable entitle the Group a legal right to receive consideration in exchange for transferred goods or rendered services.

• B. The short-term accounts and notes receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(11) Impairment of financial assets

• For financial assets at amortised cost at each reporting date, the Group recognises the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognises the impairment provision for the lifetime expected credit losses (ECLs) if such credit risk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand, for accounts receivable that does not contain a significant financing component, the Group recognises the impairment provision for lifetime ECLs.

(12) Derecognition of financial assets

The Group derecognises a financial asset when the contractual rights to receive the cash flows from the financial asset expire.

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The Group derecognises a financial asset when one of the following conditions is met:

• A. The contractual rights to receive the cash flows from the financial asset expire.

• B. The contractual rights to receive cash flows of the financial asset have been transferred and the Group has transferred substantially all risks and rewards of ownership of the financial asset.

• C. The contractual rights to receive cash flows of the financial asset have been transferred; however, the Group has not retained control of the financial asset.

• －

• (13) Leasing arrangements (lessor) operating leases

Lease income from an operating lease (net of any incentives given to the lessee) is recognised in profit or loss on a straight-line basis over the lease term.

• (14) Inventories

• Inventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted-average method. The cost of finished goods and work in progress comprises raw materials, direct labour, other direct costs and related production overheads (allocated based on normal operating capacity). It excludes borrowing costs. The item by item approach is used in applying the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and the estimated costs necessary to make the sale.

• (15) Investments accounted for using equity method / associates

• A. Associates are all entities over which the Group has significant influence but not control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for using the equity method and are initially recognised at cost.

• B. The Group’s share of its associates’ post-acquisition profits or losses is recognised in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income. When the Group’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Group does not recognise further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.

• C. When changes in an associate’s equity do not arise from profit or loss or other comprehensive income of the associate and such changes do not affect the Group’s ownership percentage of the associate, the Group recognises the Group’s share of change in equity of the associate in ‘capital surplus’ in proportion to its ownership.

• D. Unrealised gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been adjusted where necessary to ensure consistency with the policies adopted by the Group.

~25~

• E. In the case that an associate issues new shares and the Group does not subscribe or acquire new shares proportionately, which results in a change in the Group’s ownership percentage of the associate but maintains significant influence on the associate, then ‘capital surplus’ and ‘investments accounted for under the equity method’ shall be adjusted for the increase or decrease of its share of equity interest. If the above condition causes a decrease in the Group’s ownership percentage of the associate, in addition to the above adjustment, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately on the same basis as would be required if the relevant assets or liabilities were disposed of.

• F. Upon loss of significant influence over an associate, the Group remeasures any investment retained in the former associate at its fair value. Any difference between fair value and carrying amount is recognised in profit or loss.

• G. When the Group disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate, are reclassified to profit or loss, on the same basis as would be required if the relevant assets or liabilities were disposed of. If it retains significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately in accordance with the aforementioned approach.

• H. When the Group disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognised as capital surplus in relation to the associate are transferred to profit or loss. If it retains significant influence over this associate, the amounts previously recognised as capital surplus in relation to the associate are transferred to profit or loss proportionately.

(16) Property, plant and equipment

• A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalised.

• B. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

• C. Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.

~26~

• D. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year-end. If expectations for the assets’ residual values and useful lives differ from previous estimates or the patterns of consumption of the assets’ future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’, from the date of the change. The estimated useful lives of property, plant and equipment are as follows:

Buildings and structures 3 ~ 40 years Machinery and equipment 3 ~ 10 years Utility equipment 3 ~ 6 years Other equipment 2 ~ 11 years

• (17) Leasing arrangements (lessee) － right-of-use assets/ lease liabilities

• A. Leases are recognised as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Group. For short-term leases or leases of lowvalue assets, lease payments are recognised as an expense on a straight-line basis over the lease term.

• B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. The Group subsequently measures the lease liability at amortised cost using the interest method and recognises interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognised as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

• C. At the commencement date, the right-of-use asset is stated at cost comprising the following: (a) The amount of the initial measurement of lease liability

  • (b) Any initial direct costs incurred by the lessee

  • The right-of-use asset is measured subsequently using the cost model and is depreciated from the commencement date to the earlier of the end of the asset’s useful life or the end of the lease term. When the lease liability is remeasured, the amount of remeasurement is recognised as an adjustment to the right-of-use asset.

(18) Investment property

An investment property is stated initially at its cost and measured subsequently using the cost model. Except for land, investment property is depreciated on a straight-line basis over its estimated useful life of 10 ~ 46 years.

(19) Intangible assets

Computer software, reticle and patent rights are stated at cost and amortised on a straight-line basis over their estimated useful lives of 1 ~ 10 years.

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(20) Impairment of non-financial assets

The Group assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell or value in use. Except for goodwill, when the circumstances or reasons for recognizing impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortised historical cost would have been if the impairment had not been recognised.

(21) Borrowings

Borrowings comprise long-term and short-term bank borrowings. Borrowings are recognised initially at fair value, net of transaction costs incurred.

(22) Notes and accounts payable

• A. Accounts payable are liabilities for purchases of raw materials, goods or services and notes payable are those resulting from operating and non-operating activities.

• B. The Group initially measures notes and accounts payable at fair value and subsequently amortises the interest expense in profit or loss over the period of circulation using the effective interest method.

(23) Provisions

Provisions (warranties) are recognised when the Group has a present legal or constructive obligation as a result of past events, and it is probable that an outflow of economic resources will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation on the balance sheet date.

(24) Employee benefits

• A. Short-term employee benefits

Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period and should be recognised as expense in that period when the employees render service.

• B. Pensions

(a) Defined contribution plans

For defined contribution plans, the contributions are recognised as pension expense when they are due on an accrual basis. Prepaid contributions are recognised as an asset to the extent of a cash refund or a reduction in the future payments.

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• (b) Defined benefit plans

  • i. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Group in current period or prior periods. The liability recognised in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability; when there is no deep market in high-quality corporate bonds, the Group uses interest rates of government bonds (at the balance sheet date) instead.

  • ii. Remeasurements arising on defined benefit plans are recognised in other comprehensive income in the period in which they arise and are recorded as retained earnings.

  • iii. Past service costs are recognised immediately in profit or loss.

• C. Termination benefits

• Termination benefits are employee benefits provided in exchange for the termination of employment as a result from either the Group’s decision to terminate an employee’s employment before the normal retirement date, or an employee’s decision to accept an offer of redundancy benefits in exchange for the termination of employment. The Group recognises expense as it can no longer withdraw an offer of termination benefits or it recognises relating restructuring costs, whichever is earlier. Benefits that are expected to be due more than 12 months after balance sheet date shall be discounted to their present value.

• D. Employees’ compensation and directors’ remuneration

• Employees’ compensation and directors’ remuneration are recognised as expense and liability, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates. If employee compensation is paid by shares, the Group calculates the number of shares based on the closing price at the previous day of the board meeting resolution.

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- (25) Employee share based payment

• A. For the equity-settled share-based payment arrangements, the employee services received are measured at the fair value of the equity instruments granted at the grant date, and are recognised as compensation cost over the vesting period, with a corresponding adjustment to equity. The fair value of the equity instruments granted shall reflect the impact of market vesting conditions and non-vesting conditions. Compensation cost is subject to adjustment based on the service conditions that are expected to be satisfied and the estimates of the number of equity instruments that are expected to vest under the non-market vesting conditions at each balance sheet date. Ultimately, the amount of compensation cost recognised is based on the number of equity instruments that eventually vest.

• B. Restricted stocks:

• (a) Restricted stocks issued to employees are measured at the fair value of the equity instruments granted at the grant date, and are recognised as compensation cost over the vesting period.

• (b) For restricted stocks where those stocks do not restrict distribution of dividends to employees and employees are not required to return the dividends received if they resign during the vesting period, the Group recognises the fair value of the dividends received by the employees who are expected to resign during the vesting period as compensation cost at the date of dividends declared.

• (c) Employees do not need to pay a price to obtain new shares with restricted employee rights. If the employee leaves the company within the vesting period, the company will take back the stock from the employee free of charge. On the grant date, the price to be paid will be estimated and recognized as remuneration in accordance with the terms and conditions of the issuance method Costs and Liabilities.

• (d) For restricted stocks where employees have to pay to acquire those stocks, if employees resign during the vesting period, they must return the stocks to the Group and the Group must refund their payments on the stocks, the Group recognises the payments from the employees who are expected to resign during the vesting period as liabilities at the grant date, and recognises the payments from the employees who are expected to be eventually vested with the stocks in ’capital surplus – others’.

(26) Income tax

• A. The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or items recognised directly in equity, in which cases the tax is recognised in other comprehensive income or equity.

~30~

• B. The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.

• C. Deferred tax is recognised, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. However, the deferred tax is not accounted for if it arises from initial recognition of goodwill or of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.

• D. Deferred tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. At each balance sheet date, unrecognised and recognised deferred tax assets are reassessed.

• E. Current income tax assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. Deferred tax assets and liabilities are offset on the balance sheet when the entity has the legally enforceable right to offset current tax assets against current tax liabilities and they are levied by the same taxation authority on either the same entity or different entities that intend to settle on a net basis or realise the asset and settle the liability simultaneously.

• F. A deferred tax asset shall be recognised for the carryforward of unused tax credits resulting from acquisitions of equipment or technology, research and development expenditures and equity investments to the extent that it is possible that future taxable profit will be available against which the unused tax credits can be utilised.

(27) Share capital

• A. Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or stock options are shown in equity as a deduction, net of tax, from the proceeds.

~31~

• B. Where the Company repurchases the Company’s equity share capital that has been issued, the consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the Company’s equity holders. Where such shares are subsequently reissued, the difference between their book value and any consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in equity attributable to the Company’s equity holders.

(28) Dividends

Dividends are recorded in the Company’s financial statements in the period in which they are resolved by the Company’s shareholders. Cash dividends are recorded as liabilities.

• (29) Revenue recognition

• A. Sales of goods

  • (a) The Group manufactures and sells digital image technology application products. Sales are recognised when control of the products has transferred, being when the products are delivered to the buyer, the buyer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the wholesaler’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 wholesaler, and either the wholesaler has accepted the products in accordance with the sales contract, or the Group has objective evidence that all criteria for acceptance have been satisfied.

  • (b) Revenue from these sales is recognised based on the price specified in the contract, net of the value-added tax, sales return, volume discounts, sales discounts and allowances.

  • (c) The Group’s obligation to provide a repair for faulty products under the standard warranty terms is recognised as a provision.

  • (d) A receivable is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

• B. Technical service revenue

  • The Group provides technical support services. Revenue from providing services is recognised in the accounting period in which the services are rendered. For fixed-price contracts, revenue is recognised based on the actual service provided to the end of the reporting period as a proportion of the total services to be provided. This is determined based on the number of delivered report relative to the total number of committed report.

• C. Royalty income

  • (a) The Group entered into a contract with a customer to grant a licence of patented technology to the customer. Given the licence is distinct from other promised goods or services in the contract, the Group recognises the revenue from licencing when the licence transfer to a customer either at a point in time or over time based on the nature of the licence granted. The nature of the Group’s promise in granting a licence is a promise to provide a right to access

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the Group’s intellectual property if the Group undertakes activities that significantly affect the patents to which the customer has rights, the customer is affected by the Group’s activities and those activities do not result in the transfer of a good or a service to the customer as they occur. The royalties are recognised as revenue on a straight-line basis throughout the licencing period. In case the abovementioned conditions are not met, the nature of the Group’s promise in granting a licence is a promise to provide a right to use the Group’s intellectual property and therefore the revenue is recognised when transferring the licence to a customer at a point in time.

• (b) Some contracts require a usage-based royalty in exchange for a licence of intellectual property. The Group recognises revenue when the performance obligation has been satisfied and the subsequent usage occurs. The customer pays at the time specified in the payment schedule. If the services rendered exceed the payment, a contract asset is recognised. If the payments exceed the services rendered, a contract liability is recognised.

(30) Operating segments

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The Group’s chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments.

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY

The preparation of these consolidated financial statements requires management to make critical judgements in applying the Group’s accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. Such assumptions and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year; and the related information is addressed below:

(a) Critical judgements in applying the Group’s accounting policies

• None.

(b) Critical accounting estimates and assumptions

• Evaluation of inventories

As inventories are stated at the lower of cost and net realisable value, the Group must determine the net realisable value of inventories on balance sheet date using judgements and estimates. Due to the rapid technology innovation, the Group evaluates the amounts of normal inventory consumption, obsolete inventories or inventories without market selling value on balance sheet date, and writes down the cost of inventories to the net realisable value. Therefore, there might be material changes to the evaluation.

As of December 31, 2022, the carrying amount of inventories was $2,419,666.

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6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

ETAILS OF SIGNIFICANT ACCOUNTS Cash and cash equivalents
December 31, 2022 Cash on hand 905 $ Checking and demand accounts 2,108,395 Time deposits 3,250,173 Total 5,359,473 $	December 31, 2021
	808 $ 1,930,349 3,437,496 5,368,653 $

• A. The Group transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.

• B. The Group has no cash and cash equivalents pledged to others.

• (2) Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss
Items Non-current items: Financial assets mandatorily measured at fair value through profit or loss Unlisted stocks Valuation adjustment Total	December 31, 2022 10,312 $ 73,289 83,601 $	December31,2021
		10,312 $ 68,872
		79,184 $

• A. Amounts recognised in profit or loss in relation to financial assets at fair value through profit or loss are listed below:

loss are listed below:
Equity instruments Structured deposit Total	For the year ended December31,2022 4,417 $ - 4,417 $	For the year ended December31,2021
		30,955 $ 7,731
		38,686 $

• B. The Group has no financial assets at fair value through profit or loss pledged to others as at December 31, 2022 and 2021.

(3) Financial assets at fair value through other comprehensive income

Items		December	31,2022		December	31,2021
Non-current items:
Equity instruments
Unlisted stocks		$	223,080		$	222,718
Valuation adjustment	(		148,142)	(		120,858)
Total		$	74,938		$	101,860

• A. The Group has elected to classify equity instruments that are considered to be strategic investments as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $74,938 and $101,860 as at December 31, 2022 and 2021, respectively.

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• B. Amounts recognised in other comprehensive income in relation to the financial assets at fair value through other comprehensive income amounted to ($27,284) and ($21,154) for the years ended December 31, 2022 and 2021, respectively. For the year ended December 31, 2021, the accumulated loss due to delisting and transferring to retained earnings was $1,572.

• C. The Group has no financial assets at fair value through other comprehensive income as at December 31, 2022 and 2021 pledged to others.

(4) Financial assets at amortised cost

==> picture [484 x 101] intentionally omitted <==

----- Start of picture text -----

Items December 31, 2022 December 31, 2021
Current items:
Time deposit with maturity from
three months to one year $ 352,755 $ 130,245
Non-current items:
Time deposit with maturity over one year $ 617,322 $ 1,302,879
----- End of picture text -----

• A. Amounts recognised in profit or loss in relation to financial assets at amortised cost are listed below:

below:
Interest income	For the year ended December31,2022 25,710 $	For the year ended December31,2021
		45,773 $

• B. The Group has no financial assets at amortised cost pledged to others.

• C. The counterparties of the Group’s investments in time deposits are financial institutions with high credit quality, so the Group expects that the probability of counterparty default is remote.

• (5) Notes and accounts receivable

Notes and accounts receivable
		December	31, 2022		December	31,2021
Notes receivable		$	2,205		$	1,302
Accounts receivable		$	2,179,250		$	1,451,400
Less: Loss allowance	(		454)	(		170)
		$	2,178,796		$	1,451,230

• A. The ageing analysis of notes and accounts receivable based on past due date is as follows:

Not past due Up to 30 days 31 to 90 days	December	Accounts receivable 1,577,521 $ 481,956 119,773 2,179,250 $ 31,2022	December	31,2021
	Notes receivable 2,205 $ - - 2,205 $		Notes receivable 1,302 $ - - 1,302 $	Accounts receivable
				1,429,653 $ 21,660 87
				1,451,400 $

The above ageing analysis was based on past due date.

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• B. As of December 31, 2022 and 2021, accounts receivable were all from contracts with customers. And as of January 1, 2021, the balance of accounts receivable from contracts with customers amounted to $1,273,648.

• C. The Group’s notes receivable and accounts receivable do not hold any collateral provided by customers.

• D. As at December 31, 2022 and 2021, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Group’s notes and accounts receivable was $2,205 and $1,302; $2,178,796 and $1,451,230, respectively.

• E. Information relating to credit risk of notes and accounts receivable are provided in Note 12(2).

(6) Inventories

Inventories
Raw materials Work in progress Finished goods Total Raw materials Work in progress Finished goods Total	Cost 1,671,512 $ 307,081 506,464 2,485,057 $ Cost 2,035,363 $ 313,778 388,424 2,737,565 $	Allowance for valuation loss 47,325) ($ 8,044) ( 10,022) ( 65,391) ($ December31,2022 Allowance for valuation loss 27,264) ($ 3,294) ( 18,047) ( 48,605) ($ December31,2021	Bookvalue
			1,624,187 $ 299,037 496,442
			2,419,666 $
			Bookvalue
			2,008,099 $ 310,484 370,377
			2,688,960 $

The cost of inventories recognised as expense for the period:

Cost of goods sold and others Loss on decline in market value Total	For the year ended December31,2022 11,113,747 $ 16,786 11,130,533 $	For the year ended December31,2021
		6,917,595 $ 9,457
		6,927,052 $

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(7) Property, plant and equipment

At January 1 Cost Accumulated depreciation Opening net book amount Additions Disposals Reclassifications Depreciation charge Net exchange differences Closing net book amount At December 31 Cost Accumulated depreciation			2022

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2021

At January 1 Cost Accumulated depreciation Opening net book amount Additions Disposals Reclassifications Depreciation charge Net exchange differences Closing net book amount At December 31 Cost Accumulated depreciation

Construction in progress and Buildings and to be inspected Land structures Machinery Test equipment equipment Others Total 468,684 $ 2,478,439 $ 928,643 $ 148,613 $ 26,058 $ 384,141 $ 4,434,578 $ - 757,379) ( 742,761) ( 142,862) ( - 370,840) ( 2,013,842) ( 468,684 $ 1,721,060 $ 185,882 $ 5,751 $ 26,058 $ 13,301 $ 2,420,736 $ 468,684 $ 1,721,060 $ 185,882 $ 5,751 $ 26,058 $ 13,301 $ 2,420,736 $ - 241,663 96,188 3,470 39,596 8,999 389,916 - - 450) ( - - 8) ( 458) ( - 9,611 19,807 747 26,058) ( 69 4,176 - 63,857) ( 80,364) ( 3,169) ( - 6,513) ( 153,903) ( - 7,115) ( 1,062) ( 7) ( 79 55) ( 8,160) ( 468,684 $ 1,901,362 $ 220,001 $ 6,792 $ 39,675 $ 15,793 $ 2,652,307 $ 468,684 $ 2,720,508 $ 970,691 $ 139,118 $ 39,675 $ 380,067 $ 4,718,743 $ - 819,146) ( 750,690) ( 132,326) ( - 364,274) ( 2,066,436) ( 468,684 $ 1,901,362 $ 220,001 $ 6,792 $ 39,675 $ 15,793 $ 2,652,307 $

• A. For the years ended December 31, 2022 and 2021, there was no capitalisation of borrowing interests attributable to the property, plant and equipment.

• B. Information about the property, plant and equipment that were pledged to others as collaterals is provided in Note 8.

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－ (8) Leasing arrangements lessee

• A. The Group leases various assets including land, buildings, and business vehicles, the duration of the building and the business vehicles lease contract is usually between 1 and 5 years, the duration of the land lease contract usually between 20 and 49 years. Lease agreements are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes.

• B. Short-term leases with a lease term of 12 months or less comprise of buildings and equipment. Low-value assets comprise of copy machines, etc.

• C. The carrying amount of the depreciation charge are as follows:

Land Buildings Transportation equipment (Business vehicles) Land Buildings Transportation equipment (Business vehicles)	Carrying	amount
	December 31, 2022 December31,2021 103,537 $ 106,638 $ 22,371 23,359 2,295 5,736 128,203 $ 135,733 $ Depreciationcharge	December31,2021
		106,638 $ 23,359 5,736 135,733 $
	For the year ended December31,2022 3,775 $ 8,293 3,442 15,510 $	For the year ended December31,2021
		3,713 $ 5,230 5,251
		14,194 $

• D. For the years ended December 31, 2022 and 2021, the additions to right-of-use assets were $6,062 and $27,307, respectively.

• E. The information on profit and loss accounts relating to lease agreements is as follows:

Items affecting profit or loss Interest expense on lease liabilities Expense on short-term lease agreements Expense on leases of low-value assets	For the year ended December31,2022 1,115 $ 5,801 211	For the year ended December31,2021
		1,108 $ 5,387 102

• F. For the years ended December 31, 2022 and 2021, the Group’s total cash outflow for leases were $21,968 and $19,742, respectively.

• G. Extension and termination options

In determining the lease term, the Group takes into consideration all facts and circumstances that create an economic incentive to exercise an extension option. The assessment of lease period is reviewed if a significant event occurs which affects the assessment.

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(9) Investment property

nvestment property
						2022
			Land		Buildings	and structures			Total
At January 1
Cost		$	587,213		$	1,050,439		$	1,637,652
Accumulated depreciation	(		4,155)	(		255,582)	(		259,737)
		$	583,058		$	794,857		$	1,377,915
At January 1		$	583,058		$	794,857		$	1,377,915
Reclassifications			-	(		210)	(		210)
Depreciation charge	(		303)	(		25,287)	(		25,590)
Net exchange differences			150			9,782			9,932
At December 31		$	582,905		$	779,142		$	1,362,047
At December 31
Cost		$	587,427		$	1,062,736		$	1,650,163
Accumulated depreciation	(		4,522)	(		283,594)	(		288,116)
		$	582,905		$	779,142		$	1,362,047
						2021
			Land		Buildings	and structures			Total
At January 1
Cost		$	587,286		$	1,054,765		$	1,642,051
Accumulated depreciation	(		3,879)	(		231,586)	(		235,465)
		$	583,407		$	823,179		$	1,406,586
At January 1		$	583,407		$	823,179		$	1,406,586
Depreciation charge	(		296)	(		24,863)	(		25,159)
Net exchange differences	(		53)	(		3,459)	(		3,512)
At December 31		$	583,058		$	794,857		$	1,377,915
At December 31
Cost		$	587,213		$	1,050,439		$	1,637,652
Accumulated depreciation	(		4,155)	(		255,582)	(		259,737)
		$	583,058		$	794,857		$	1,377,915

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• A. Rental income from investment property and direct operating expenses arising from investment property are shown below:

Rental income from investment property Direct operating expenses arising from the investment property that generated rental income during the year	For the year ended For the year ended December 31, 2022 December 31, 2021 98,202 $ 95,078 $ 35,917 $ 43,183 $

• B. The fair value of the investment property held by the Group as at December 31, 2022 and 2021 amounted to $1,841,825 and $1,823,645, respectively, which were valued by independent appraisers. Valuations were made using the comparative method and income approach to perform evaluation capitalisation.

• C. There was no capitalisation of borrowing costs attributable to investment property.

• D. The Group has no investment property pledged to others.

• (10) Intangible assets

Intangible assets
			2022			2021
At January 1
Cost		$	734,537		$	380,197
Accumulated amortisation	(		242,903)	(		164,936)
		$	491,634		$	215,261
At January 1		$	491,634		$	215,261
Additions			14,453			331,572
Reclassifications	(		9,091)			77,561
Amortisation charge	(		190,110)	(		131,008)
Net exchange differences			6,617	(		1,752)
At December 31		$	313,503		$	491,634
At December 31
Cost		$	742,377		$	734,537
Accumulated amortisation	(		428,874)	(		242,903)
		$	313,503		$	491,634
A. Details of amortisation on intangible assets are as follows:
			For the year ended			For the year ended
		December31,2022			December31,2021
Operating costs	$		426	$		105
Operating expenses			189,684			130,903
	$		190,110	$		131,008

• B. The Group has no intangible assets pledged to others.

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(11) Short-term borrowings

(11)	Short-term borrowings	Short-term borrowings
(12) (13)	Short-term notes and bills payable Long-term borrowings Type of borrowings December31,2022 Bank borrowings Unsecured borrowings 2,213,000 $ Type of borrowings December 31, 2021 Bank borrowings Unsecured borrowings 2,510,000 $ Commercial paper payable Less: Discount on short-term notes and bills payable Interest rate range Type of borrowings Borrowing period Bank secured borrowings November 21, 2022 to November 21, 2023 Less: Current portion		Interest rate range Collateral 1.44%~2.50% None Interest rate range Collateral 0.82%~1.25% None December 31, 2022 December 31, 2021 400,000 $ 600,000 $ 331) ( 182) ( 399,669 $ 599,818 $ 1.80%~1.90% 0.84%~0.87% Interest rate range Collateral December31,2022 1.80% Note 500,000 $ 500,000) ( - $
		November 21, 2022 to November 21, 2023

Note ： The collateral of long-term borrowings, please refer to Note 8. December 31, 2021 ： None.

(14) Other payables

December 31, 2021：None. Other payables
Accrued salaries and bonus Employees’ and directors’ compensation payable Royalty payable Taxes payable Insurance premiums and pensions payable Service fee payable Interest payable Other	December 31, 2022 269,217 255,231 1,207 39,541 16,576 56,811 2,010 149,477 790,070 $	December31,2021
		190,241 141,518 23,312 31,245 18,286 20,974 969 134,607
		561,152 $

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(15) Pensions

• A. (a) The Company and its domestic subsidiaries have a defined benefit pension plan in accordance with the Labor Standards Act, covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Labor Standards Act. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Group contributes monthly an amount equal to 2% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee.

• (b) The amounts recognised in the balance sheet are as follows:

	December	31, 2022	December	31,2021
Present value of defined benefit obligations	($	53,603)	($	51,430)
Fair value of plan assets		48,688		44,574
Net defined benefit liability	($	4,915)	($	6,856)

• (c) Movements in net defined benefit liabilities are as follows:

At January 1 Interest (expense) income Remeasurements: Return on plan assets (excluding amounts included in interest income or expense) Change in financial assumptions Experience adjustments Pension fund contribution Paid pension At December 31			2022
	Present value of defined benefit obligations 51,430) ($ 308) ( 51,738) ( - 769) ( 2,464) ( 3,233) ( - 1,368 53,603) ($		Fair value ofplanassets	Net defined benefitliability
		44,574 $ 267 44,841 3,439 - - 3,439 762 354) ( 48,688 $		6,856) ($ 41) ( 6,897) ( 3,439 769) ( 2,464) ( 206 762 1,014 4,915) ($

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2021

			2021
At January 1 Interest (expense) income Remeasurements: Return on plan assets (excluding amounts included in interest income or expense) Change in demographic assumptions Change in financial assumptions Experience adjustments Pension fund contribution Paid pension At December 31	Present value of defined benefit obligations		Fair value ofplanassets	Net defined benefitliability
	54,843) ($ 165) ( 55,008) ( - 43) ( 1,481 1,315 2,753 - 825 51,430) ($	44,573 $ 134 44,707 680 - - - 680 12 825) ( 44,574 $		10,270) ($ 31) ( 10,301) ( 680 43) ( 1,481 1,315 3,433 12 - 6,856) ($

(d) The Bank of Taiwan was commissioned to manage the Fund of the Group’s and domestic subsidiaries’ defined benefit pension plan in accordance with the Fund’s annual investment and utilisation plan and the “Regulations for Revenues, Expenditures, Safeguard and Utilisation of the Labor Retirement Fund” (Article 6: The scope of utilisation for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-the-counter, or private placement equity securities, investment in domestic or foreign real estate securitization products, etc.). With regard to the utilisation of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings is less than aforementioned rates, government shall make payment for the deficit after being authorized by the Regulator. The Group’s and domestic subsidiaries have no right to participate in managing and operating that fund and hence the Group’s and domestic subsidiaries are unable to disclose the classification of plan assets fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as of December 31, 2022 and 2021 is given in the Annual Labor Retirement Fund Utilisation Report announced by the government.

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(f) The principal actuarial assumptions used were as follows:

The principal actuarial assumptions	used were as follows:
	For the year ended	For the year ended
	December 31, 2022	December31,2021
Discount rate	1.30%	0.60%
Future salary increases	4.00%	3.00%

Assumptions regarding future mortality are set based on actuarial advice in accordance with published statistics and experience in Taiwan life insurance industry after 2022 and 2021. Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis was as follows:

==> picture [448 x 155] intentionally omitted <==

----- Start of picture text -----

Discount rate Future salary increases
Increase 0.25% Decrease 0.25% Increase 0.25% Decrease 0.25%
December 31, 2022
Effect on present value
of defined benefit
obligations ($ 1,121) $ 1,156 $ 1,002 ($ 978)
December 31, 2021
Effect on present value
of defined benefit
obligations ($ 1,156) $ 1,194 $ 1,046 ($ 1,019)
----- End of picture text -----

The sensitivity analysis above is based on one assumption which changed while the other conditions remain unchanged. In practice, more than one assumption may change all at once. The method of analysing sensitivity and the method of calculating net pension liability in the balance sheet are the same.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the previous period.

• (g) Expected contributions to the defined benefit pension plans of the Group for the year ending December 31, 2023 amount to $972.

• (h) As of December 31, 2022, the weighted average duration of the retirement plan is 9 years. The analysis of timing of the future pension payment was as follows:

The analysis of timing of the future pension payment was as follows:
Within 1 year 2-5 years Over 5 years	6,745 $ 8,811 19,962
	35,518 $

• B.(a) Effective July 1, 2005, the Company and its domestic subsidiaries have established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act, covering all regular employees with R.O.C. nationality. Under the New Plan, the Company and its domestic subsidiaries contribute monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment. The

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pension costs under defined contribution pension plans of the Group for the years ended December 31, 2022 and 2021, were $36,349 and $34,655, respectively, under the above pension scheme.

• (b) The foreign subsidiaries provided defined contribution plans for their employees. Pursuant to local regulations, such employees and the subsidiaries each make contributions based on a certain percentage based of the salaries and wages to the pension funds. The subsidiaries had recognised pension costs of $26,377 and $17,046, for the years ended December 31, 2022 and 2021, respectively.

(16) Share-based payments

• A. For the years ended December 31, 2022 and 2021, the Group’s share-based payment arrangements were as follows:

arrangements were as follows:
Type of arrangement	Grant date	Quantity granted (share in thousands)	Contract period	Vesting conditions
Plan for restricted shares to employee (2018-1) Plan for restricted shares to employee (2019-1) " Treasury stock transferred to employees " " " "	January 20, 2020 January 20, 2020 April 24, 2020 March 9, 2021 May 17, 2021 October 14, 2021 January 11, 2022 July 6, 2022	2,196 2,030 86 2,000 2,000 2,000 1,000 1,910	3 years 3 years 3 years - - - - -	Note Note Note Immediately vested Immediately vested Immediately vested Immediately vested Immediately

• Note: The restricted shares were issued at no consideration to the Company’s existing employees whose service years have reached 1 year, 2 years and 3 years and who achieved the performance condition. The vested ratio is 40%, 30% and 30%, respectively. If employees who are entitled to receive restricted shares do not meet the vesting conditions, the Company will retrieve at no consideration and retire those shares.

• The shares and dividends distributed to employees during the vesting period shall be given by the Company at no consideration. Employees are not required to return the shares and dividends if they resign during the vesting period.

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B. Restricted shares to employees:

• (a) The information on restricted shares to employees is as follows (share in thousands):

		2022		2021
Shares not vested beginning balance		2,679		4,968
Shares vested	(	1,384)	(	1,993)
Shares forfeited - retired	(	383)	(	296)
Shares not vested ending balance		912		2,679

• (b) For the year ended December 31, 2022, the Company retrieved 383 thousand restricted shares because certain employees did not meet the vesting condition, and the change of registration has been completed.

• C. For the years ended December 31, 2022 and 2021, the weighted-average exercise price of treasury stock transferred to employees was $18.24 (in NT dollars) and $19.66 (in NT dollars), respectively.

• D. The information of fair value of the share-based payment transaction given by the Group is as follows:

Type of arrangement	Grant date	Share price (in NT dollar)	Exercise price (in NT dollar)	Expected price volatility	Expected option life	Expected dividends	Risk-free interest rate	Weighted average fair value per unit (in NT dollar)
Plan for restricted shares to employee (2018-1) Plan for restricted shares to employee (2019-1) " Treasury stock transferred to employees " " " "	January 20, 2020 January 20, 2020 April 24, 2020 March 9, 2021 May 17, 2021 October 14, 2021 January 11, 2022 July 6, 2022	22.80 $ 22.80 18.20 34.10 27.95 31.90 43.50 31.25	- $ - - 21.08 18.24 ~21.08 18.24 18.24 18.24	N/A N/A N/A N/A N/A N/A N/A N/A	3 years 3 years 3 years - - - - -	N/A N/A N/A N/A N/A N/A N/A N/A	N/A N/A N/A N/A N/A N/A N/A N/A	22.80 $ 22.80 18.20 34.10 27.95 31.90 43.50 31.25

• E. Expenses incurred on share-based payment transactions are shown below:

For the year ended For the year ended December 31, 2022 December 31, 2021 Equity-settled $ 59,414 $ 97,292

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(17) Provisions

At January 1, 2022 Additional provisions Used during the period Reversed during the period Exchange differences At December 31, 2022 Current Non-current	Warranty 160,280 $ 41,718 838) ( 14,724) ( 17 186,453 $ December 31, 2022 December 31, 2021 49,839 $ 25,245 $ 136,614 $ 135,035 $

The Group provides warranties on digital image technology application products sold. Provision for warranties is estimated based on historical warranty data of digital image technology application products.

(18) Share capital

As of December 31, 2022, the Company’s authorised capital was $5,000,000, consisting of 500,000 thousand shares of ordinary stock, and the paid-in capital was $2,788,180 with a par value of $10 (in NT dollars) per share.

• A. Movements in the number of the Company’s ordinary shares outstanding are as follows (share in thousands):

(share in thousands):
	2022		2021
At January 1	272,001		268,497
Treasury stock transferred to employees	5,110		3,800
Retired restricted shares to employees that
did not meet the vesting conditions	383) (	(	296)
At December 31	276,728		272,001

B. Treasury shares

• (a) Reason for share reacquisition and the number of the Company’s treasury shares are as follows :

follows :
Name of company holdingthe shares	Reason for reacquisition	Number of shares (share in thousands) 2,090 December Number of shares (share in thousands) 7,200 December	December	31,2022
				Carryingamount
The Company Name of company holdingthe shares	To be reissued to employees Reason for reacquisition			38,101 $
				31,2021
				Carryingamount
The Company	To be reissued to employees			131,461 $

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• (b) Pursuant to the R.O.C. Securities and Exchange Act, the number of shares bought back as treasury share should not exceed 10% of the number of the Company’s issued and outstanding shares and the amount bought back should not exceed the sum of retained earnings, paid-in capital in excess of par value and realised capital surplus.

• (c) Pursuant to the R.O.C. Securities and Exchange Act, treasury shares should not be pledged as collateral and is not entitled to dividends before it is reissued.

• (d) Pursuant to the R.O.C. Securities and Exchange Act, treasury shares should be reissued to the employees within five years from the reacquisition date and shares not reissued within the five-year period are to be retired.

(19) Capital surplus

Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new shares or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Act requires that the amount of capital surplus to be capitalised mentioned above should not exceed 10% of the paidin capital each year. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

2022

At January 1 Changes in ownership interests in subsidiaries Treasury stock transferred to employees Employee stock options expired Employee restricted shares vested Retired restricted shares to employees that did not meet the vesting conditions At December 31	Share Employee stock Difference between consideration and carrying amount of subsidiaries acquired or Changes in ownership interests in premium options disposed subsidiaries 1,847,105 $ 49,102 $ 1,534 $ 388,907 $ - - 1,534) ( 388,907) ( - - - - 49,102 49,102) ( - - 17,866 - - - - - - - 1,914,073 $ - $ - $ - $	Treasury Restricted shares to shares employees Total 71,168 $ 34,399 $ 2,392,215 $ - - 390,441) ( 49,768 - 49,768 - - - - 17,866) ( - - 4,917) ( 4,917) ( 120,936 $ 11,616 $ 2,046,625 $	Total
			2,046,625 $

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2021

Share premium At January 1 1,821,473 $ Changes in ownership interests in subsidiaries - Treasury stock transferred to employees - Employee restricted shares vested 25,632 Retired restricted shares to employees that did not meet the vesting conditions - At December 31 1,847,105 $	Employee stock options 49,102 $ - - - - 49,102 $	Difference between consideration and carrying amount of subsidiaries acquired or Changes in ownership interests in disposed subsidiaries 1,534 $ 397,909 $ - 9,002) ( - - - - - - 1,534 $ 388,907 $	Treasury Restricted shares to shares employees Total 1,455 $ 63,753 $ 2,335,226 $ - - 9,002) ( 69,713 - 69,713 - 25,632) ( - - 3,722) ( 3,722) ( 71,168 $ 34,399 $ 2,392,215 $	Treasury Restricted shares to shares employees Total 1,455 $ 63,753 $ 2,335,226 $ - - 9,002) ( 69,713 - 69,713 - 25,632) ( - - 3,722) ( 3,722) ( 71,168 $ 34,399 $ 2,392,215 $
				2,392,215 $

(20) Retained earnings

• A. According to the Company’s Articles of Incorporation, the annual earnings, if any, shall first be used to pay all taxes and offset prior years’ operating losses and then 10% of the remaining amount shall be set aside as legal reserve. Special reserve shall be set aside in accordance with the relevant regulations. The remaining amount plus the unappropriated earnings of prior years are distributed in cash, based on the resolution by the Board of Directors. In the case of new shares, the distribution shall be proposed by the Board of Directors and resolved at the shareholders’ meeting.

• Dividends and bonus, in the form of cash, could be resolved by a resolution adopted by a majority vote at a meeting of Board of Directors attended by two-thirds of the total number of directors and reported at the shareholders’ meeting.

• B. The amount of dividends appropriated is based on the Company’s current year’s net income and prior years’ retained earnings, taking into account the Company’s financial structure and future operating plans. The distribution ratio of cash dividends to stock dividends is based on the Company’s funding status, diluted earnings per share and other factors. According to the dividend policy, cash dividends shall account for at least 20% of the total dividends distributed.

• C. Except for covering accumulated deficit or issuing new shares or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of shares or cash to shareholders in proportion to their share ownership is permitted, provided that the balance of the reserve exceeds 25% of the Company’s paid-in capital.

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• D. (a) In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.

• (b) The amounts previously set aside by the Company as special reserve on initial application of IFRSs in accordance with Order No. Financial-Supervisory-Securities-Corporate1010012865, dated April 6, 2012, shall be reversed proportionately when the relevant assets are used, disposed of or reclassified subsequently. Such amounts are reversed upon disposal or reclassified if the assets are investment property of land, and reversed over the use period if the assets are investment property other than land.

• E. The appropriation of 2021 and 2020 earnings had been resolved at the shareholders’ meetings on June 17, 2022 and August 26, 2021, respectively. Details are summarised below:

Legal reserve Special reserve Cash dividends	Dividends per share Amount (inNTdollars) 22,592 $ 123,276 190,401 0.7 $ 336,269 $ 2021	2020
	Amount 22,592 $ 123,276 190,401 336,269 $	Dividends per share Amount (in NT dollars) 15,943 $ 59,231 134,249 0.5 $ 209,423 $

The appropriation of 2021 and 2020 earnings were the same as that proposed by the Board of Directors on March 10, 2022 and March 25, 2021, respectively.

• F. The appropriation of 2022 earnings had been proposed by the Board of Directors on March 10, 2023. Details are summarized below:

2023. Details are summarized below:
				2022
				Dividends per share
			Amount		(inNTdollars)
Legal reserve		$	43,676
Reversal of special reserve	(		259,420)
Cash dividends			276,728	$	1
		$	60,984

For the aforementioned distribution of 2022 earnings, except for cash dividends which were resolved and approved by the Board of Directors on March 10, 2023, others were pending for approval at the shareholders’ meeting.

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(21) Other equity items

(21)	Other equity items	Other equity items
(22)	Operating revenue Unrealised Foreign currency losses on Unearned translation valuation compensation Total At January 1 653,974) ($ 120,857) ($ 12,528) ($ 787,359) ($ Valuation adjustment - 27,284) ( - 27,284) ( Currency translation differences: -Group 286,704 - - 286,704 Retirement of restricted shares to employees - - 8,748 8,748 Share-based payment transactions - - 3,084 3,084 At December 31 367,270) ($ 148,141) ($ 696) ($ 516,107) ($ 2022 Unrealised Foreign currency losses on Unearned translation valuation compensation Total At January 1 550,536) ($ 101,020) ($ 46,142) ($ 697,698) ($ Valuation adjustment - 21,409) ( - 21,409) ( Valuation adjustment to retained earnings - 1,572 - 1,572 Currency translation differences: -Group 103,438) ( - - 103,438) ( Retirement of restricted shares to employees - - 6,684 6,684 Share-based payment transactions - - 26,930 26,930 At December 31 653,974) ($ 120,857) ($ 12,528) ($ 787,359) ($ 2021 For the year ended For the year ended December31,2022 December31,2021 Revenue from contracts with customers 14,028,161 $ 9,085,774 $
		9,085,774 $

A. Disaggregation of revenue from contracts with customers

The Group derives revenue from the transfer of goods and services over time and at a point in time in the following major geographical regions:

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For the year ended December31,2022 Revenue from external customer contracts Timing of revenue recognition At a point in time Over time Total For the year ended December31,2021 Revenue from external customer contracts Timing of revenue recognition At a point in time Over time Total	Asia 9,508,602 $ 9,108,182 $ 400,420 9,508,602 $ Asia 5,568,808 $ 5,527,908 $ 40,900 5,568,808 $	Europe 1,645,377 $ 1,591,190 $ 54,187 1,645,377 $ Europe 1,197,596 $ 1,197,596 $ - 1,197,596 $	America 2,846,806 $ 2,786,819 $ 59,987 2,846,806 $ America 2,305,695 $ 2,305,695 $ - 2,305,695 $	Oceania 1,867 $ 1,867 $ - 1,867 $ Oceania - $ - $ - - $	Taiwan 25,509 $ 4,244 $ 21,265 25,509 $ Taiwan 13,675 $ 13,675 $ - 13,675 $	Total 14,028,161 $
						13,492,302 $ 535,859
						14,028,161 $
						Total
						9,085,774 $
						9,044,874 $ 40,900
						9,085,774 $

• B. Contract liabilities

The Group has recognised the following revenue-related contract liabilities:

Contract liabilities	December 31, 2022 December 31, 2021 439,481 $ 262,350 $	January1,2021
		32,568 $

C. Revenue recognised that was included in the contract liability balance at the beginning of the period

period
Interest income Revenue recognised that was included in the contract liabilities at the beginning of the period Interest income from bank deposits Interest income from financial assets measured at amortised cost Other interest income	For the year ended December31,2022 200,471 $ For the year ended December31,2022 55,274 $ 25,710 31 81,015 $	For the year ended December31,2021
		25,011 $
		For the year ended December31,2021
		25,973 $ 45,773 47
		71,793 $

(23) Interest income

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(24) Other income

Other income
			For the year ended			For the year ended
		December31,2022			December31,2021
Rent income	$		58,183	$		47,745
Dividend income			2,289			1,526
Other income - others			11,635			16,872
	$		72,107	$		66,143
Other gains and losses
			For the year ended			For the year ended
		December31,2022			December31,2021
Gain (loss) on disposal of property, plant and
equipment		$	660	($		26)
Net currency exchange gains			119,202			14,232
Net gains on financial assets at fair value
through profit or loss			4,417			38,686
Other expenses	(		9,108)	(		78)
		$	115,171		$	52,814
Finance costs
			For the year ended			For the year ended
		December31,2022			December31,2021
Interest expense :
Bank loan	$		37,461	$		21,918
Lease liabilities			1,115			1,108
Other			3,611			2,826
	$		42,187	$		25,852
Expenses by nature
			For the year ended			For the year ended
		December31,2022			December31,2021
Employee benefit expenses	$		1,916,885	$		1,523,840
Depreciation charges on property, plant and
equipment			166,992			153,903
Depreciation charges on right-of-use assets			15,510			14,194
Depreciation charges on investment property			25,590			25,159
Amortisation charges on intangible assets			190,110			131,008

(25) Other gains and losses

(26) Finance costs

(27) Expenses by nature

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(28) Employee benefit expenses

Employee benefit expenses
Wages and salaries Labour and health insurance fees Pension costs Other personnel expenses	For the year ended December31,2022 1,728,863 $ 71,161 62,767 54,094 1,916,885 $	For the year ended December31,2021
		1,370,405 $ 62,205 51,732 39,498
		1,523,840 $

• A. According to the Articles of Incorporation of the Company, employees’ compensation and directors’ remuneration shall be calculated based on current year’s earnings, which should first be used to cover accumulated deficit, if any, 10% to 20% for employees’ compensation and no more than 5% for directors’ remuneration. Employees’ compensation can be distributed in the form of shares or in cash. Employees of subsidiaries that the Company holds more than 50% shareholding are entitled to receive aforementioned shares or cash.

• Abovementioned distributable profit of the current period refers to the pre-tax profit before deduction of employees’ compensation and directors’ remuneration. A company may, by a resolution adopted by a majority vote at a meeting of Board of Directors attended by two-thirds of the total number of directors, distribute employees’ compensation and directors’ remuneration and report such distribution to the shareholders’ meeting.

• B. For the years ended December 31, 2022 and 2021, employees’ compensation was accrued at $89,798 and $44,429, respectively; directors’ remuneration was accrued at $29,933 and $5,924, respectively. The aforementioned amounts were calculated based on the Articles of Incorporation of the Company and recognised in salary expenses.

• Employees’ compensation and directors’ remuneration for 2021 amounting to $44,429 and $5,924, respectively, as resolved at the meeting of Board of Directors were in agreement with those amounts recognised in the 2021 financial statements.

• Information about employees’ compensation and directors’ remuneration of the Company as resolved at the meeting of Board of Directors will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

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(29) Income tax

A. Income tax expense

(a) Components of income tax expense:

Current tax: Current tax on profit for the year Charge on unappropriated retained earnings Tax paid outside of the territory of the Republic of China Prior year income tax under (over) estimation Total current tax Deferred tax: Origination and reversal of temporary differences Income tax expense	For the year ended For the year ended December31,2022 December31,2021 157,408 $ 101,185 $ 2,688 3,418 11,563 20,401 2,262 5,030) ( 173,921 119,974 7,145 2,863) ( 181,066 $ 117,111 $

(b) The income tax charged to other comprehensive income is as follows:

Changes in fair value of financial assets at fair value through other comprehensive income Translation differences of foreign operations Benefit obligations revaluation	For the year ended For the year ended December31,2022 December31,2021 - $ 255 $ 71,676 25,860) ( 41 687 71,717 $ 24,918) ($

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B. Reconciliation between income tax expense and accounting profit ：

		For the year ended	For the year ended		For the year ended	For the year ended
		December31,2022			December31,2021
Tax calculated based on profit before
tax and statutory tax rate		$	237,090		$	189,793
Tax exempt income or expenses disallowed by
tax regulation			6,398	(		12,184)
Tax on undistributed earnings			2,688			3,418
Change in assessment of realisation of
deferred tax assets	(		74,428)	(		37,347)
Effect from investment tax credits	(		29,013)	(		33,433)
Loss deducted not recognised as
deferred tax assets			24,506	(		8,507)
Prior year income tax under (over)estimation			2,262	(		5,030)
Effect of different tax rates in countries
in which the group operates			11,563			20,401
Income tax expense		$	181,066		$	117,111

C. Amounts of deferred tax assets or liabilities as a result of temporary differences, tax losses and investment tax credits are as follows:

Deferred tax assets: Temporary differences: Cost of after-sales service and other estimated expenses Currency translation differences Tax losses Investment tax credits Subtotal Deferred tax liabilities: Temporary differences: Gain on foreign investment under equity method Pension expenses Others Subtotal Total		2022

~57~

Deferred tax assets: Temporary differences: Cost of after-sales service and other estimated expenses Currency translation differences Others Tax losses Investment tax credits Subtotal Deferred tax liabilities: Temporary differences: Gain on foreign investment under equity method Pension expenses Others Subtotal Total			2021	2021
		January1	Recognised in profit or loss	Recognised in other comprehensive income December31 - $ 40,831 $ 25,860 134,003 255) ( - - 30,814 - 22,981 25,605 $ 228,629 $ - $ 479,367) ($ 687) ( 1,572) ( - 2,239) ( 687) ($ 483,178) ($ 24,918 $ 254,549) ($	December31
	51,602 $ 108,143 255 16,347 6,014 182,361 $ 461,253) ($ 889) ( 2,549) ( 464,691) ($ 282,330) ($		10,771) ($ - - 14,467 16,967 20,663 $ 18,114) ($ 4 310 17,800) ($ 2,863 $		40,831 $ 134,003 - 30,814 22,981
					228,629 $

D. Details of the amount the Company is entitled as investment tax credit and unrecognised deferred tax assets are as follows:

tax assets are as follows:
Qualifyingitems				December 31, 2022
		Unused taxcredits		Unrecognised deferred tax assets	Expiry year
Research and development Research and development Qualifyingitems		17,968 $ 9,708 27,676 $		6,107 $ - 6,107 $ December 31,2021	2023 2024
		Unused taxcredits		Unrecognised deferred taxassets	Expiry year
Research and development Research and development		20,379 $ 10,539 30,918 $		7,938 $ - 7,938 $	2022 2023

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• E. Expiration dates of unused tax losses and amounts of unrecognised deferred tax assets are as follows:

==> picture [461 x 236] intentionally omitted <==

----- Start of picture text -----

December 31, 2022
Amount filed/ deferred tax
Year incurred assessed Unused amount assets Expiry year
2019 $ 187,895 $ 159,378 $ 76,820 2029
2022 171,263 171,263 82,549 2032
$ 359,158 $ 330,641 $ 159,369
December 31, 2021
Amount filed/ deferred tax
Year incurred assessed Unused amount assets Expiry year
2018 $ 17,466 $ 17,466 $ - 2028
2019 187,895 163,611 64,771 2029
2020 5,053 5,053 - 2030
2021 32,710 32,710 - 2031
$ 243,124 $ 218,840 $ 64,771
----- End of picture text -----

• F. The amounts of deductible temporary difference that are not recognised as deferred tax assets are as follows: None.

• G. The Company’s income tax returns through 2020 have been assessed and approved by the Tax Authority.

(30) Earnings per share

Authority. Earnings per share
Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares Restricted shares to employees Employees’ compensation Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	Amount after tax 456,742 $ 456,742 $ - - 456,742 $ For	Weighted average number of ordinary shares outstanding Earnings per share (share in thousands) (in dollars) 273,374 1.67 $ 1,194 2,921 277,489 1.65 $ theyear ended December31,2022
			1.67 $
			1.65 $

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----- Start of picture text -----

For the year ended December 31, 2021
Weighted average number of
ordinary shares outstanding Earnings per share
Amount after tax (share in thousands) (in dollars)
Basic earnings per share
Profit attributable to ordinary
shareholders of the parent $ 224,734 265,654 $ 0.85
Diluted earnings per share
Profit attributable to ordinary
shareholders of the parent $ 224,734
Assumed conversion of all dilutive
-
potential ordinary shares 2,719
-
Restricted shares to employees 1,203
-
Employees’ compensation 1,135
Profit attributable to ordinary
shareholders of the parent
plus assumed conversion of
all dilutive potential ordinary
shares $ 224,734 270,711 $ 0.83
----- End of picture text -----

(31) Transactions with non-controlling interest

1. In January 2021, the Group disposed 25% of its shares in subsidiary—Altek Optical Technology (Kunshan) Co., Ltd. and in February 2021, 11.67% of its shares in subsidiary—Altek Medical Holding (Cayman) Co., Ltd. Therefore, the Group reduced its shareholding in subsidiaries in the above transactions.

2. Altek Medical Holding (Cayman) Co., Ltd., a subsidiary company of the Group, increased its capital in January 2021. The Group did not subscribe to the capital increase which resulted in a reduction of 6.15% of its shareholding in accordance with its shareholding ratio. The subsidiary company, Altek Optical Technology (Kunshan) Co., Ltd, increased its capital in February 2021. The Group and the non-controlling interests subscribed the capital increase in accordance with the shareholding ratio.

3. Altek Medical Holding (Cayman) Co., Ltd., a subsidiary of the Group, issued restricted stocks to reward employees in November, 2011, and the Group's shareholding ratio was reduced by 4.48%.

4. Altek Semiconductor (Cayman) Co., Ltd., a subsidiary of the Group, repurchased shares from shareholders of non-controlling interests in June 2022, thus increasing the Group's shareholding ratio by 21.43%.

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The effect of changes in interests on the equity attributable to owners of the parent is shown below:

			For the year ended		For the year ended
		December31,2022			December31,2021
Consideration received from non-controlling		$	-		99,094 $
interest
Non-controlling interests invested in cash			-		117,175
Consideration paid to non-controlling interests	(		893,400)		-
Decrease (increase) in the carrying amount of
non-controlling interest			484,982	(	225,271)
Capital surplus	($		408,418)	9,002) ($

(32) Supplemental cash flow information

Investing activities with partial cash payments ：

pplemental cash flow information vesting activities with partial cash payments：
			For the year ended			For the year ended
		December31,2022			December 31, 2021
Acquisition of property, plant, and equipment		$	133,925		$	389,916
Add: Payable on equipment at beginning of year			1,954			4,203
Less: Payable on equipment at end of year	(		957)	(		1,954)
Cash paid		$	134,922		$	392,165
			For the year ended			For the year ended
		December31,2022			December31,2021
Acquisition of intangible assets		$	14,453		$	331,572
Add: Payables at beginning of year			25,730			278
Less: Payables at end of year	(		10,686)	(		25,730)
Cash paid		$	29,497		$	306,120

(33) Changes in liabilities from financing activities

January 1, 2022 Changes in cash flow from financing activities Interest expenses Changes in other non-cash items Impact of changes in foreign exchange rate December 31, 2022	Short-term borrowings	Short-term notes and billspayable		Long-term borrowings (Note)	Guarantee deposits received	Guarantee deposits received	Lease liabilities 118,535 $ 15,956) ( 1,115 6,441 1,231 111,366 $	Total
	2,510,000 $ 297,000) ( - - - 2,213,000 $	599,818 $ 203,760) ( 3,611 - - 399,669 $		- $ 500,000 - - - 500,000 $	36,236 $ 278) ( - - 464 36,422 $			3,264,589 $ 16,994) ( 4,726 6,441 1,695 3,260,457 $
						36,422 $

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January 1, 2021 Changes in cash flow from financing activities Interest expenses Changes in other non- cash items Impact of changes in foreign exchange rate December 31, 2021	Short-term borrowings	Short-term notes and billspayable	Long-term borrowings Guarantee deposits received Lease liabilities 250,000 $ 26,480 $ 104,512 $ 250,000) ( 9,841 14,253) ( - - 1,108 - - 27,307 - 85) ( 139) ( - $ 36,236 $ 118,535 $	Total
	2,330,000 $ 180,000 - - - 2,510,000 $	299,798 $ 297,194 2,826 - - 599,818 $		3,010,790 $ 222,782 3,934 27,307 224) ( 3,264,589 $

Note ： The loan will be due within one year, and it is listed as "long-term liabilities, current portion".

7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and relationship: None.

(2) Significant transactions and balances with related parties: No significant related party transactions.

(3) Key management compensation

Key management compensation
Salaries and other short-term employee benefits Post-employment benefits Share-based payments Total	For the year ended December31,2022 93,030 $ 998 934 94,962 $	For the year ended December 31, 2021
		48,747 $ 1,027 5,927
		55,701 $

8. PLEDGED ASSETS

The Group’s assets pledged as collateral are as follows:

Pledged asset	Purpose		Book	value	value
			December31,2022		December31,2021
Land and buildings Investment property	Medium and long-term loans Medium and long-term loans		212,743 $ 736,980 949,723 $		- $ - - $

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT

COMMITMENTS

None.

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD

Earnings distribution plan of the Company for the year 2022 is provided in Note 6(20).

12. OTHERS

(1) Capital management

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a

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going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends, return capital or issue new shares to achieve the optimal capital structure.

(2) Financial instruments

A. Financial instruments by category

ucture. ancial instruments Financial instruments by category
Financial assets Financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income Financial assets at amortised cost Cash and cash equivalents Current financial assets at amortised cost Notes receivable Accounts receivable Other accounts receivable Guarantee deposit paid Financial liabilities Financial liabilities at amortised cost Short-term borrowings Short-term notes and bills payable Accounts payable Other accounts payable Long-term borrowings (including current portion) Guarantee deposits received Lease liabilities	December31,2022 83,601 $ 74,938 $ 5,359,473 $ 970,077 2,205 2,178,796 47,678 33,381 8,591,610 $ December31,2022 2,213,000 $ 399,669 1,635,048 790,070 500,000 36,422 5,574,209 $ 111,366 $	December31,2021 79,184 $ 101,860 $
		5,368,653 $ 1,433,124 1,302 1,451,230 110,440 33,436
		8,398,185 $
		December31,2021
		2,510,000 $ 599,818 1,972,344 561,152 - 36,236
		5,679,550 $
		118,535 $

• B. Financial risk management policies

• (a) The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. The Group’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group’s financial position and financial performance.

• (b) Risk management is carried out by a Group treasury department under policies approved by the Board of Directors. Group treasury identifies, evaluates and hedges financial risks in close co-operation with the Group’s operating units. The Board provides written principles for overall risk management, as well as written policies covering specific areas and matters, such

~63~

as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.

• C. Significant financial risks and degrees of financial risks

• (a) Market risk

Foreign exchange risk

• i. The Group operates internationally and is exposed to exchange rate risk arising from the transactions of the Company and its subsidiaries used in various functional currency, primarily with respect to the USD and RMB. Exchange rate risk arises from future commercial transactions and recognised assets and liabilities.

• ii. Exchange rate risk arises when future commercial transactions, recognized assets or liabilities are denominated in a foreign currency that is not the entity's functional currency. The Group's management has established a policy to its subsidiaries in the group to hedge its overall exchange rate risk through the Group’s finance department.

• iii. The Group has certain investments in foreign operations, whose net assets are exposed to foreign currency translation risk. Currency exposure arising from the net assets of the Group’s foreign operations is managed primarily through transactions denominated in the relevant foreign currencies.

• iv. The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

December 31, 2022

Foreign Currency Amount (In thousands) (Foreign currency: functional currency) Financial assets Monetary items USD:NTD 85,088 USD USD:RMB 77,644 USD Financial liabilities Monetary items USD:NTD 82,610 USD USD:RMB 53,977 USD	Exchange Book Value Rate (NTD) 30.710 2,613,052 $ 6.9646 2,384,447 30.710 2,536,953 $ 6.9646 1,657,634	SensitivityAnalysis	SensitivityAnalysis
		Effect on Extent of Profit or Variation (Loss) 1% 26,131 $ 1% 23,844 1% 25,370) ($ 1% 16,576) (	Effect on Other Comprehensive Income(Loss)
			- $ - - $ -

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December 31, 2021

Foreign Currency Amount Exchange (In thousands) Rate (Foreign currency: functional currency) Financial assets Monetary items USD:NTD 76,326 USD 27.680 USD:RMB 47,181 USD 6.3757 Financial liabilities Monetary items USD:NTD 52,205 USD 27.680 USD:RMB 65,151 USD 6.3757	Effect on Effect on Other Book Value Extent of Profit or Comprehensive (NTD) Variation (Loss) Income(Loss) 2,112,704 $ 1% 21,127 $ - $ 1,305,970 1% 13,060 - 1,445,034 $ 1% 14,450) ($ - $ 1,803,380 1% 18,034) ( - SensitivityAnalysis

• v. Total exchange gain including realised and unrealised arising from significant foreign exchange variation on the monetary items held by the Group for the years ended December 31, 2022 and 2021 amounted to $119,202 and $14,232, respectively.

Price risk

• i. The Group’s investments in equity securities, which are exposed to price risk, are the held financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income.

• ii. The Group’s investments in equity securities comprise shares issued by the domestic companies. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased by 10% with all other variables held constant, post-tax profit for the years ended December 31, 2022 and 2021 would have increased/decreased by $8,360 and $7,918, respectively, as a result of gains/losses on equity securities classified as at fair value through profit or loss. Other components of equity would have increased/decreased by $7,494 and $10,186, respectively, as a result of price change on equity investment at fair value through other comprehensive income.

Cash flow and fair value interest rate risk

The Group’s main interest rate risk arises from long-term and short-term borrowings. If the borrowing interest rate had increased/decreased by 0.25% with all other variables held constant, profit before tax for the years ended December 31, 2022 and 2021 would have increased/decreased by $6,783 and $6,275, respectively. The main factor is that changes in interest expense result in floating-rate borrowings.

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• (b) Credit risk

• i. Credit risk refers to the risk of financial loss to the Group arising from default by customers or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms.

• ii. The Group manages their credit risk taking into consideration the entire Group’s concern. According to the Group’s credit policy, each local entity in the Group is responsible for managing and analysing the credit risk for each of their new customers before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the Board of Directors. The utilisation of credit limits is regularly monitored.

• iii. The Group measured internal operating procedures, past experience of trading customers, and actual transaction status. If the contract payments were past due over 90 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition. If the contract payments were past due over 360 days based on the term, the default has occurred.

• iv. The following indicators are used to determine whether the credit impairment of debt instruments has occurred:

• (i) It becomes probable that the issuer will enter bankruptcy or other financial reorganisation due to their financial difficulties;

• (ii) The disappearance of an active market for that financial asset because of financial difficulties;

• (iii) Default or delinquency in interest or principal repayments;

• (iv) Adverse changes in national or regional economic conditions that are expected to cause a default.

• v. The Group classifies customers’ accounts receivable, notes receivable and contract asset in accordance with customer types. The Group applies the simplified approach using loss provision matrix to estimate expected credit loss under the provision matrix basis.

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

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• vii. The Group used the forecastability to adjust historical and timely information to access the default possibility of contract assets, notes receivable and accounts receivable. As of December 31, 2022 and 2021, the provision matrix is as follows:

December31,2022 Expected loss rate Total book value Loss allowance December31,2021 Expected loss rate Total book value Loss allowance	Up to 90 days past due	91 to180 days past due 15%~20% - $ - $ 91 to180 days past due	181 to 360 days past due	Over 360 days Total 100% - $ 2,202,492 $ - $ 458 $ Over 360 days Total 100% - $ 1,452,702 $ - $ 170 $
	0.02%~0.03% 2,202,492 $ 458 $ Up to 90 dayspast due		30%~40% - $ - $ 181 to 360 days past due
	0.01%~0.03% 1,452,702 $ 170 $	15%~20% - $ - $	30%~40% - $ - $

viii. Movements in relation to the Group applying the simplified approach to provide loss

allowance for contract assets, notes receivable and accounts receivable are as follows:

			2022	2022	2022
			Contract assets		Accounts	receivable
At January 1		$	-		$	170
Impairment loss			4			283
Effect of foreign exchange			-			1
At December 31		$	4		$	454
			2021
			Contract assets		Accounts	receivable
At January 1		$	1		$	265
Reversal of impairment loss	(		1)	(		95)
Effect of foreign exchange			-			-
At December 31		$	-		$	170

(c) Liquidity risk

• i. Cash flow forecasting is performed in the operating entities of the Group and aggregated by Group treasury. Group treasury monitors rolling forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities. Such forecasting takes into consideration the Group’s debt financing plans, and compliance with internal balance sheet ratio targets.

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

iii.The Group has the following undrawn borrowing facilities:

0 Fixed rate: Expiring within one year Expiring over one year	December31,2022 December31,2021 3,901,538 $ 2,259,130 $ 500,000 - 4,401,538 $ 2,259,130 $

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

December 31, 2022 Non-derivative financial liabilities: Short-term borrowings Short-term notes and bills payable Accounts payable Other payables Lease liabilities Guarantee deposits received Long-term borrowings (including current portion) December 31, 2021 Non-derivative financial liabilities: Short-term borrowings Short-term notes and bills payable Accounts payable Other payables Lease liabilities Guarantee deposits received	Less than 1year 2,213,000 $ 399,669 1,635,048 790,070 16,840 - 500,000 Less than 1year 2,510,000 $ 599,818 1,972,344 561,152 15,001 -	1to 3 years Over3 years - $ - $ - - - - - - 19,146 91,236 36,422 - - - 1to 3 years Over3 years - $ - $ - - - - - - 25,410 94,609 36,236 -	1to 3 years Over3 years - $ - $ - - - - - - 19,146 91,236 36,422 - - - 1to 3 years Over3 years - $ - $ - - - - - - 25,410 94,609 36,236 -
			- $ - - - 94,609 -

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(3) Fair value estimation

• A. The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:

• Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.

• Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

• Level 3: Unobservable inputs for the asset or liability. The fair value of the Group’s investment in equity investment without active market and investment property are included in Level 3.

• B. Fair value information of investment property at cost is provided in Note 6(9).

• C. Financial instruments was not measured at fair value, including the carrying amounts of cash and cash equivalents, financial assets at amortised cost, notes receivable, accounts receivable, other receivables, deposits paid, short-term borrowings, short-term bills payable, accounts payable, other payables, long-term borrowings (including current portion), deposit received and lease liabilities are approximate to their fair values.

• D. The related information of financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities are as follows:

• (a) The related information of natures of the assets is as follows:

December 31, 2022 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Unlisted stocks Financial assets at fair value through other comprehensive income Unlisted stocks	Level 1 - $ - - $	Level 2 - $ - - $	Level3 83,601 $ 74,938 158,539 $	Total
				83,601 $ 74,938
				158,539 $

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==> picture [442 x 196] intentionally omitted <==

----- Start of picture text -----

December 31, 2021 Level 1 Level 2 Level 3 Total
Assets
Recurring fair value
measurements
Financial assets at fair
value through profit
or loss
Unlisted stocks $ - $ - $ 79,184 $ 79,184
Financial assets at fair
value through other
comprehensive income
Unlisted stocks - - 101,860 101,860
$ - $ - $ 181,044 $ 181,044
----- End of picture text -----

• (b) The methods and assumptions the Group used to measure fair value are as follows:

  • i. Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques. The fair value of financial instruments measured by using valuation techniques can be referred to current fair value of instruments with similar terms and characteristics in substance, discounted cash flow method or other valuation methods, including calculated by applying model using market information available at the consolidated balance sheet date.

• ii. The output of valuation model is an estimated value and the valuation technique may not be able to capture all relevant factors of the Group’s financial and non-financial instruments. Therefore, the estimated value derived using valuation model is adjusted accordingly with additional inputs.

• E. For the years ended December 31, 2022 and 2021, there was no transfer between Level 1 and Level 2.

• F. The following table is the movement of Level 3 for the years ended December 31, 2022 and 2021:

			2022			2021
At January 1		$	181,044		$	441,023
Purchases in the year			-			238,324
Gains recognised in profit or loss			4,417			38,686
Gains recognised in other comprehensive income	(		27,284)	(		21,154)
Sold in the year			-	(		510,036)
Proceeds from capital reduction in the year	(		1,566)	(		3,056)
Effect of exchange rate changes			1,928	(		2,743)
At December 31		$	158,539		$	181,044

• G. For the years ended December 31, 2022 and 2021, there was no transfer in or out from Level 3.

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• H. Accounting Department segment is in charge of valuation procedures for fair value measurements being categorised within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions, confirming the resource of information is independent, reliable and in line with other resources and represented as the exercisable price, and frequently calibrating valuation model, performing back-testing, updating inputs used to the valuation model and making any other necessary adjustments to the fair value.

(Blank below)

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• I. The following is the qualitative information of significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement:

value measurement:
Financial assets at fair value through profit or loss Unlisted stocks Financial assets at fair value through other comprehensive income Unlisted stocks Unlisted stocks	Fair value at December 31,2022	Valuation technique	Significant unobservableinput	Relationship of inputs to fairvalue
	$ 83,601 37,193 37,745	Market comparable companies Net asset value Discounted cash flow	Price to earnings ratio multiple, price to book ratio multiple, discount for lack of marketability, control premium Not applicable Long-term revenue growth rate, weighted average cost of capital, long- term pre-tax operating margin, discount for lack of marketability, discount for lack of control	The higher the multiple and control premium, the higher the fair value Not applicable The higher the long-term revenue growth rate and the long-term pre-tax operating profit, the higher the fair value; the higher the weighted average cost of capital and minority equity discount, the lower the fair value

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Financial assets at fair value through profit or loss Unlisted stocks Financial assets at fair value through other comprehensive income Unlisted stocks Unlisted stocks	Fair value at December 31,2021	Valuation technique	Significant unobservableinput	Relationship of inputs to fairvalue
	$ 79,184 37,910 63,950	Market comparable companies Net asset value Discounted cash flow	Price to earnings ratio multiple, price to book ratio multiple, discount for lack of marketability, control premium Not applicable Long-term revenue growth rate, weighted average cost of capital, long- term pre-tax operating margin, discount for lack of marketability, discount for lack of control	The higher the multiple and control premium, the higher the fair value Not applicable The higher the long-term revenue growth rate and the long-term pre-tax operating profit, the higher the fair value; the higher the weighted average cost of capital and minority equity discount, the lower the fair value

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- ’ (4) The impact of the COVID 19 pandemic to the Group s operation

Due to the COVID-19 epidemic, the Group has adjusted the work style of its employees, strengthened disinfection, and controlled entry and exit of personnel. With the outbreak of the variant of COVID19, some cities in mainland China have been implementing lockdown policies since March 2022 to curb the spread of the epidemic. The Group’s subsidiary in Kunshan closed temporarily due to adoption of the silent management since early April 2022, and resumed on May 12, 2022. The Group will continue to track the development of the epidemic and actively adjust the allocation of manpower and production capacity to ensure stable supply in the future.

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

• A. Loans to others: Please refer to table 1.

• B. Provision of endorsements and guarantees to others: Please refer to table 2.

• C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) : Please refer to table 3.

• D. Acquisition or sale of the same security with the accumulated cost exceeding NT$300 million or 20% of the Company’s paid-in capital: Please refer to table 4.

• E. Acquisition of real estate reaching NT$300 million or 20% of paid-in capital or more: Please refer to table 5.

• F. Disposal of real estate reaching NT$300 million or 20% of paid-in capital or more: Please refer to table 6.

• G. Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paidin capital or more: Please refer to table 7.

• H. Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more: Please refer to table 8.

• I. Trading in derivative financial instruments undertaken during the reporting periods: None.

• J. Significant inter-company transactions during the reporting period: Please refer to table 9.

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Please refer to table 10.

(3) Information on investments in Mainland China

• A. The related information of investments in Mainland China: Please refer to table 11.

• B. Significant transactions, either directly or indirectly through a third area, with investee companies in Mainland China: Please refer to table 7 ~ table 9.

(4) Major shareholders information

Please refer to table 12.

14. SEGMENT INFORMATION

(1) General information

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The Group mainly operates in one segment. The Chief Operating Decision-Maker reviews the Group’s reporting to assess performance and allocate resources. The Group mainly has one single reportable segment.

• (2) Measurement of segment information

• The Group evaluates performance based on profit or loss by using sales revenue and operation profit measurements. The accounting policies of the Group's operating segments are the same as the significant accounting policies summarised in Note 4.

(3) Information about segment profit or loss, assets and liabilities

• The Group has a single reportable segment. The revenue from external customers, the related gain or loss, and the assets correspond with the consolidated revenue, consolidated operating income, and consolidated assets.

(4) Reconciliation for segment income (loss)

• The amounts provided to the Chief Operating Decision-Maker with respect to department assets, liabilities and profit are measured in a manner consistent with that of the financial statements.

(5) Information on products and services

The revenue from external customers are mainly derived from the sales of digital related products and related export and import trade.

(6) Geographical information

Geographical information for the years ended December 31, 2022 and 2021 is as follows:

Asia Europe America Oceania Taiwan	Non-current Revenue assets 9,508,602 $ 1,840,509 $ 1,645,377 - 2,846,806 263,199 1,867 - 25,509 2,362,378 14,028,161 $ 4,466,086 $ YearendedDecember31,2022	Year ended December 31, 2021	Year ended December 31, 2021
	Revenue 9,508,602 $ 1,645,377 2,846,806 1,867 25,509 14,028,161 $	Revenue 5,568,808 $ 1,197,596 2,305,695 - 13,675 9,085,774 $	Non-current assets 1,845,447 $ - 242,201 - 2,569,941
			4,657,589 $

Note: Financial instruments and deferred income tax assets are excluded from non-current assets.

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(7) Major customer information

Major customer information of the Group for the years ended December 31, 2022 and 2021 is as follows:

follows:
		Revenue
	Year	endedDecember31,2022	YearendedDecember31,2021
A	$	4,473,267	$	3,093,704
B		2,470,618		1,935,079
C		827,778		1,244,792
D		2,735,547		217,075

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Altek Corporation and subsidiaries Loans to other For the year ended December 31, 2022

No. Table 1	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance during the year ended December 31, 2022	Balance at December 31, 2022	Actual amount drawn down	Interest rate	Nature of loan	Amount of transactions with the borrower	Reason term financing	Allowance for doubtful accounts	Collateral	Collateral	Limit on loans Ceiling on granted to total loans a single party granted （Note) (Note) 894,682 $ 3,578,727 $ 1,231,526 1,231,526 959,678 1,919,355 8,269,548 8,269,548 Expressed in thousands of NTD (Except as otherwise indicated)	Limit on loans Ceiling on granted to total loans a single party granted （Note) (Note) 894,682 $ 3,578,727 $ 1,231,526 1,231,526 959,678 1,919,355 8,269,548 8,269,548 Expressed in thousands of NTD (Except as otherwise indicated)
													Item	Value
0 1 2 3	Altek Corporation Altek Semiconductor (Cayman) Co., Ltd. Altek (Kunshan) Co., Ltd. Altek International Investment Co., Ltd.	Altek Semiconductor Corporation Altek Semiconductor Corporation Altek Optical Technology (Kunshan) Co. , Ltd. Altek Corporation	Other receivables- related party Other receivables- related party Other receivables- related party Other receivables- related party	Yes Yes Yes Yes	400,000 $ 161,075 110,235 630,156	400,000 $ - 44,094 626,484	- $ - 44,094 214,970	1.5% 0% 3.2% 0%	Reason for short-term financing Reason for short-term financing Reason for short-term financing Reason for short-term financing	- $ - - -	Operational need Operational need Operational need Operational need	- $ - - -	N/A N/A N/A	- $ - - -	894,682 $ 1,231,526 959,678 8,269,548	3,578,727 $ 1,231,526 1,919,355 8,269,548

Note 1: If the amount of NTD in this Note relates to foreign currencies, it is converted to NTD at the exchange rate at the end of the financial reporting period. Note 2: The ”Procedure for Provision of Loans” policy for loans granted by Altek Corporation is as follows: the ceiling on total loans is 40% of the net assets value of lender. For a single enterprise, the ceiling on loans is 10% of the net assets value of lender.

Note 3: The ”Procedure for Provision of Loans” policy for loans granted by Altek Semiconductor (Cayman) Co.,Ltd. is as follows: the ceiling on total loans is 100% of the net assets value of lender. Note 4: The ”Procedure for Provision of Loans” policy for loans granted by Altek (Kunshan) Co., Ltd. is as follows: the ceiling on total loans is 40% of the net assets value of lender. For a single enterprise, the ceiling on loans is 20% of the net assets value of lender.

Note 5: The ”Procedure for Provision of Loans” policy for loans granted by Altek International Investment Co., Ltd. is as follows: the ceiling on total loans is 100% of the net assets value of lender.

Table 1

Altek Corporation and subsidiaries

Provision of endorsements and guarantees to others For the year ended December 31, 2022

Table 2

Expressed in thousands of NTD (Except as otherwise indicated)

Party being endorsed/guaranteed

Ratio of accumulated Limited on endorsement/ Provision of Provision of Provision of Relationship endorsements/ Guarantee Amount of guarantee amount to Ceiling on total endorsements/ endorsements/ endorsements/ with the guarantees Amount as at amount at endorsements/ net asset value of the amount of guarantees by guarantees by guarantees to the endorser/ provided for a December 31, December 31, Actual amont guarantees secured endorser/ guarantor endorsements/ parent company to subsidiary to party in Mainland Number Endorser/guarantor Company name guarantor single party 2022 2022 drawn down with collateral company guarantees provided subsidiary parent company China Footnote 0 Altek Corporation Altek Semiconductor Note 2 $ 1,789,364 $ 154,450 $ 153,550 $ - $ - 1.73 $ 4,473,409 Y N N (Cayman) Co., Ltd.

Note 1: If the amount of NTD in this Note relates to foreign currencies, it is converted to NTD at the exchange rate at the end of the financial reporting period.

Note 2: A company in which the company directly or indirectly holds more than 50% of the voting shares.

Note 3: According to the "Endorsement Guarantee Operation Procedures" of Altek Corporation the overall endorsement guarantee amount shall not exceed 50% of its net value, and the endorsement guarantee amount of a single enterprise shall not exceed 20% of its net value.

Table 2

Altek Corporation and subsidiaries

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures)

December 31, 2022

			December 31, 2022
Table 3 Securitiesheld by	Marketable securities	Relationship with the securitiesissuer	General ledgeraccount		As of December31,2022 Expressed in thousands of NTD (Except as otherwise indicated)
				Numberofshares	Bookvalue	Ownership (%)	Fairvalue
Altek Corporation " Altek (Kunshan) Co., Ltd. Altek EMS (Kunshan) Co., Ltd.	Gianta Co., Ltd. - Common stock Hua-chuang Automobile Information Technical Center Co., Ltd. - Common stock CPEC Huachuang Private Equity (Kunshan) Enterprise (Limited Partnership) Aimore Acoustivs Incorporation	Director None None Director	Financial assets at fair value through profit or loss - non-current Financial assets measured at fair value through other comprehensive income - non-current " "	762,876 2 N/A N/A	83,601 $ - 37,193 37,745	14.55% 0.00% (Note 1) (Note 2)	83,601 $ - 37,193 37,745

Note 1: 1% of CPEC Huachuang Private Equity (Kunshan) Enterprise (Limited Partnership)’s capital contribution. Note 2: 12.5% of Aimore Acoustivs Incorporation’s capital contribution.

Table 3

Altek Corporation and subsidiaries

Accumulative purchase or sale of the same securities amounted to NT$300 million or more than 20% of the paid-in capital

For the year ended December 31, 2022

Table 4

Expressed in thousands of NTD (Except as otherwise indicated)

Buying and selling company	Marketable securities type andname	Account subject	Trading partners	Relation	Beginning	Beginning	Buy	Buy		Sell	Sell		Ending	Ending
					Number of shares	Amount of money	Number of shares	Amount of money	Number of shares	Selling price	Book cost	Disposal profit andloss	Number of shares	Amount of money
Altek Corporation	Altek Medical Holding (Cayman) Co., Ltd. Common stock	Investments using the equity method	Altek International Holding (BVI) Co., Ltd.	Subsidiaries of the Company	-	$ -	45,063,684	$ 755,272	-	$ -	$ -	$ -	45,063,684	$ 875,644

Table 4

Altek Corporation and subsidiaries

The amount of real estate acquired is NT$300 million or more than 20% of the paid-in capital

For the year ended December 31, 2022

Table 5

Expressed in thousands of NTD

(Except as otherwise indicated)

Company that acquiresrealestate	Propertyname	Date of fact	Amount of the transaction	Payment situation	Trading partners	Relation	If the transaction object is a related party, the previous data transfer	If the transaction object is a related party, the previous data transfer	If the transaction object is a related party, the previous data transfer	If the transaction object is a related party, the previous data transfer	Reference basis for price determination	Acquisition purpose and usage	Other agreed matters
							Everyone	Relationship with Issuer	Transferdate	Amount of money
Altek Biotechnology Corporation	Land and Buildings in Neihu District, Taipei City	August, 2022	$ 384,000	As of December 31, 2022, $345,600 has been paid in accordance with the contract	Altek Corporation	Parent-subsidiary	Natural person	Non-related party	December, 2010	$ 314,084	Refer to the valuation report issued by a professional valuation agency	Group overall operation planning	None

Table 5

Altek Corporation and subsidiaries

The amount of disposal of real estate amounted to NT$300 million or more than 20% of the paid-in capital

For the year ended December 31, 2022

Table 6

Expressed in thousands of NTD (Except as otherwise indicated)

Companies disposing of real estate	Propertyname	Date of fact	Original date of acquisition	Book amount	Amount of the transaction	Price Collection Situation	Disposal profit and loss	Trading partners	Relation	Punishment purpose	Reference basis for price determination	Other agreed matters
Altek Corporation	Land and Buildings in Neihu District, Taipei City	August, 2022	December, 2010	Note	384,000 $	As of December 31, 2022, $345,600 has been received according to the contract	Note	Altek Biotechnology Corporation	Parent-subsidiary	Group overall operation planning	Refer to the valuation report issued by a professional appraisal agency	None

Note: As of December 31, 2022, the transfer procedure of the transaction was in progress.

Table 6

Altek Corporation and subsidiaries

Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid-in capital or more

For the year ended December 31, 2022

Table 7

Expressed in thousands of NTD (Except as otherwise indicated)

Purchaser/seller	Counterparty	Relationship with the counterparty		Transaction	Transaction		Differences in transaction terms compared to third party transactions	Differences in transaction terms compared to third party transactions	Notes/accounts receivable(payable)	Notes/accounts receivable(payable)
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable(payable)
Altek Corporation Altek International Trading Co., Ltd. Altek Biotechnology Corporation Altek Medical Holding (Cayman) Co., Ltd. Taiwan Branch Altek (Kunshan) Co., Ltd. Altek Medical (Kunshan) Limited	Altek International Trading Co., Ltd. Altek (Kunshan) Co., Ltd. Altek Medical (Kunshan) Limited " Altek International Trading Co., Ltd. Altek (Kunshan) Co., Ltd.	Parent-subsidiary The same ultimate parent company The same parent company The same parent company The same ultimate parent company The same ultimate parent company	Purchases Purchases Purchases Purchases Purchases Purchases	7,983,832 $ 8,691,718 2,042,670 503,597 721,726 488,200	92% 100% 99% 90% 8% 19%	Net 120 days Net 75 days " " " "	Approximately the same price with third parties " " " " "	Note " " " " "	1,669,861) ($ 1,424,318) ( 329,872) ( 109,292) ( - 348,514) (	93% 99% 99% 92% 0% 50%

Note: The payment term with third parties was net 60~120 days.

Table 7

Altek Corporation and subsidiaries

Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more

December 31, 2022

Table 8

Expressed in thousands of NTD (Except as otherwise indicated)

Creditor	Counterparty	Relationship with the counterparty	Balance as at December31,2022	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts	Note
					Amount	Action taken
Altek International Trading Co., Ltd. Altek (Kunshan) Co., Ltd. " Altek Medical (Kunshan) Limited " Altek International Investment Co., Ltd.	Altek Corporation Altek International Trading Co., Ltd. Altek Medical (Kunshan) Limited Altek Biotechnology Corporation Altek Medical Holding (Cayman) Co., Ltd. Taiwan Branch Altek Corporation	Parent-subsidiary The same ultimate parent company The same ultimate parent company The same parent company The same parent company Parent-subsidiary	1,669,861 $ 1,424,318 348,514 329,872 109,292 214,970	5.36 5.84 6.66 5.26 5.02 -	- $ - - - - -	N/A N/A N/A N/A N/A N/A	1,416,751 $ 1,395,331 184,467 269,023 26,302 -	- $ - - - - -	Note

Note: It is a loan to related party, shown as other receivables.

Table 8

Altek Corporation and subsidiaries

Significant inter-company transactions during the reporting periods

For the year ended December 31, 2022

Table 9

Expressed in thousands of NTD

(Except as otherwise indicated)

Companyname	Counterparty	Relationship (Note1)			Transaction
			General ledgeraccount	Amount	Transactionterms	Percentage of consolidated total operating revenues ortotalassets (Note2)
Altek Corporation " Altek International Trading Co., Ltd. " Altek Biotechnology Corporation " Altek Medical Holding (Cayman) Co., Ltd. Taiwan Branch " " Altek (Kunshan) Co., Ltd. Altek Medical (Kunshan) Limited "	Altek International Trading Co., Ltd. " Altek (Kunshan) Co., Ltd. " Altek Medical (Kunshan) Limited " Altek Corporation Altek Medical (Kunshan) Limited " Altek International Trading Co., Ltd. Altek (Kunshan) Co., Ltd. "	(1) (1) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3)	Purchases Accounts payable Purchases Accounts payable Purchases Accounts payable Purchases Purchases Accounts payable Purchases Purchases Accounts payable	7,983,832 $ 1,669,861 8,691,718 1,424,318 2,042,670 329,872 32,657 503,597 109,292 721,726 488,200 348,514	Net 120 days " Net 75 days " " " " " " " "	57% 10% 62% 9% 15% 2% 0% 4% 1% 5% 3% 2%

Note 1: Relationship between transaction and counterparty is classified into the following categories:

(1) Parent company to subsidiary.

(2) Subsidiary to parent company.

(3) Subsidiary to subsidiary.

Note 2: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts.

Note 3: The Company may decide to disclose or not to disclose transaction details in this table based on the Materiality Principle.

Table 9

Altek Corporation and subsidiaries

Information on investees

Table 10

Expressed in thousands of NTD (Except as otherwise indicated)

For the year ended December 31, 2022

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as at December 31,2022	Shares held as at December 31,2022	Shares held as at December 31,2022	Net profit (loss) of the investee for the year ended December 31,2022	Investment income(loss) recognised by the Company for the year ended December 31,2022	Footnote
				Balance as at December 31, 2022	Balance as at December 31, 2021	Number of shares	Ownership (%)	Book value
Altek Corporation " " " " Altek International Investment Co., Ltd. " " " Altek International Holding (BVI) Co, Ltd. Altek Semiconductor (Cayman) Co., Ltd. Altek Medical Holding (Cayman) Co., Ltd. " Altek Investment	Altek International Investment Co., Ltd. Altek Japan Corporation Altek International Holding (BVI) Co, Ltd. Altek Investment Corporation Altek Medical Holding (Cayman) Co. ,Ltd. Altek Lab Inc. Altek Semiconductor (Cayman) Co., Ltd. Altek Optical Technology (Cayman) Co., Ltd. Altek International Trading Co,. Ltd. Altek Medical Holding (Cayman) Co. ,Ltd. Altek Semiconductor Corporation Altek Biotechnology Corporation Altek Medical (HongKong) Limited Ptek Corporation	British Virgin Islands Japan British Virgin Islands Republic of China Cayman Islands U.S.A. Cayman Islands Cayman Islands Republic of Seychelles Cayman Islands Republic of China Republic of China HongKong Republic of China	Investment Buying and selling of electronic components Investment Investment Investment and general business operations Design service Investment Investment Intercompany transactions Investment and general business operations Research design and sales of ASIC Research and development, manufacture and sales of medical electronic equipments Investment Product development and design	2,882,512 $ 2,869 415,376 100,000 755,272 113,005 188,781 406,785 307,100 - 350,000 115,376 36,852 3,000	2,882,512 $ 2,869 415,376 100,000 - 113,005 188,781 406,785 307,100 345,976 350,000 115,376 36,852 3,000	87,769,559 1,000 12,865,921 10,000,000 45,063,684 11,311,875 20,000,000 13,246,000 10,000,000 - 35,000,000 10,100,000 N/A 300,000	100 100 100 100 77.70 100 71.43 100 100 - 100 100 100 100	8,255,923 $ 10,190 1,270,802 99,796 875,644 64,320 89,078 134,496 244,222 - 126,277 717,786 70,826 2,865	216,609 $ 420 221,521 77) ( 357,395 74) ( 153,685) ( 42,290 9,196) ( 357,395 151,284) ( 194,439 34,474 132) (	210,635 $ 420 222,414 77) ( 65,146 74) ( 96,002) ( 42,290 9,196) ( 212,418 90,131) ( 151,079 26,787 132) (	Note 1 Note 2 Note 3 Note 1 Note 2 Note 2 Note 3 Note 2 Note 2 Note 2

Corporation

Note 1: The difference between the profit or loss of the investee for the current period and the investment profit or loss recognized in the current period is the unrealized profit and loss adjustments for countercurrent transactions between subsidiaries. Note 2: The difference between the profit and loss of the investee company in the current period and the investment profit and loss recognized in the current period is based on the shareholding ratio. Note 3: For investment structure adjustment, the shareholder of Altek Medical Holding (Cayman) Co., Ltd. was adjusted from Altek International Holding (BVI) Co., Ltd. to Altek Corporation in November, 2022.

Table 10

Altek Corporation and subsidiaries

Information on investments in Mainland China

Table 11

Expressed in thousands of NTD (Except as otherwise indicated)

For the year ended December 31, 2022

Investee in Mainland China	Mainbusiness activities	Paid-incapital	Investment method （Note1）	Accumulated amount of remittance from Taiwan to Mainland China as of January1,2022	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year ended December31,2022	Accumulated amount of remittance from Taiwan toMainland China as of December31,2022	Net profit (loss) of investee for the year ended December31,2022	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31, 2022 (Note4)	Accumulated amount of investment income remitted back to Taiwan as of December31,2022 Book value of investments in Mainland China as of December31,2022
					Remitted to Mainland China Remitted back to Taiwan
Altek (Kunshan) Co., Ltd. (Note 2) Altek EMS (Kunshan) Co., Ltd. (Note 3) Altek Trading (Shanghai) Limited Altek Precision (Kunshan) Co., Ltd. Altek Optical Technology (Kunshan) Co., Ltd. Altek Semiconductor (Shanghai) Co., Ltd. Altek Medical (Shanghai) Limited Altek Medical (Kunshan) Limited	Manufacture and sale of digital still cameras and its accessories Production /sales of electronic product components Wholesale, import and export of digital cameras, digital video cameras and their associated accessories Design, manufacture and sales of digital camera parts Manufacture and sale of components for electronic related products Research design and sales of imaging technologies, electronic software and hardware Sales of medical electronic equipment Manufacture and sale of medical electronic equipment	1,523,216 $ 153,550 261,035 423,798 429,940 46,065 30,710 26,457	2 2 2 2 2 2 2 2	1,381,950 $ 278,939 261,035 423,798 408,443 - - -	- $ - $ - - - - - - - - - - - - - -	1,381,950 $ 278,939 261,035 423,798 408,443 - - -	317,608 $ 13,070 5,030) ( 3,584 56,386 506) ( 34,477 34,758	100 100 100 100 75 100 77.70 77.70	317,608 $ 13,070 5,030) ( 3,584 42,290 1,199 26,789 27,007	4,592,660 $ - $ 584,226 91,860 302,342 - 158,152 - 134,493 - 110,557 - 64,688 - 61,243 -

Note 1: Investment methods are classified into the following three categories; fill in the number of category each case belongs to: (1)Directly invest in a company in Mainland China.

(2)Through investing in an existing company in the third area,which then investeed in the investee in Mainland China.

Note 2: Including retained earnings capitalized of US$4,600 (In thousand of US dollars).

Note 3: Including retained earnings capitalized of US$3,600 (In thousand of US dollars).

Note 4: The basic explanation of investment profit and loss recognition is audited by the R.O.C. parent company’s independent auditors. Note 5: In June 2022, the investment structure of the subsidiary Altek Semiconductor (Shanghai) Co., Ltd. was adjusted, and the shares of Altek Semiconductor (Cayman) Co., Ltd. were adjusted to the shares of Altek Trading (Shanghai) Limited.

Companyname	Accumulated amount of remittance from Taiwan to MainlandChina as of December31,2022	Investment amount approved by the Investment Commission of the Ministryof Economic Affairs(MOEA)	Ceiling on investments in Mainland China imposed bythe InvestmentCommission of MOEA
Altek Corporation	$2,754,165	$3,113,185	$5,317,837

Table 11

Altek Corporation and subsidiaries Information of major shareholders December 31, 2022

Table 12

Name of major shareholders	Shares	Shares
	Number of shares held	Holding percentage
Yitsang International Co., Ltd.	14,630,100	5.24%

Table 12