Altek — Audit Report / Information 2023

Nov 13, 2023

ALTEK CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REPORT

DECEMBER 31, 2023 AND 2022

(Stock Code ： 3059)

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INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

PWCR23000235

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, 2023 and 2022, 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, 2023 and 2022, 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 Financial Statement Audit and Attestation Engagements of Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the 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 2023 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 2023 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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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, 2023 and 2022.

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 controls as management determines are necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

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.

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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 controls.

• 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 controls.

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

• 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.

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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.

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 11, 2024

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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, Taiwan 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, 2023 AND 2022

(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)	December31,2023 AMOUNT % $ 5,798,794 38 390,169 2 - - 28,796 - 1,741,007 11 68,885 - 1,298 - 1,762,109 11 342,470 2 4,072 - 10,137,600 64 124,007 1 38,461 - 1,083,803 7 2,614,119 17 144,286 1 1,326,463 8 164,789 1 173,077 1 35,953 - 5,704,958 36 $ 15,842,558 100	December31,2022	December31,2022
		AMOUNT $ 5,798,794 390,169 - 28,796 1,741,007 68,885 1,298 1,762,109 342,470 4,072 10,137,600 124,007 38,461 1,083,803 2,614,119 144,286 1,326,463 164,789 173,077 35,953 5,704,958 $ 15,842,558	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	%
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 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 2 - - 14 - - 15 3 -
				67
				1 - 4 16 1 8 2 1 -
				33
				100

(Continued)

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ALTEK CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity

December31,2023 December31,2022 Notes AMOUNT % AMOUNT % 6(11) $ 2,234,704 14 $ 2,213,000 14 6(12) - - 399,669 2 6(22) 351,051 2 439,481 3 1,240,588 8 1,635,048 10 6(14) 917,502 6 790,070 5 150,780 1 65,272 - 6(17) 67,256 - 49,839 - 18,523 - 15,388 - 6(13) and 8 - - 500,000 3 91,926 1 163,975 1 5,072,330 32 6,271,742 38 6(13) and 8 900,000 6 - - 6(17) 130,998 1 136,614 1 6(29) 463,086 3 494,336 3 113,652 1 95,978 1 6(15) 39,726 - 41,337 - 1,647,462 11 768,265 5 6,719,792 43 7,040,007 43 6(18) 2,788,000 18 2,788,180 17 6(19) 2,046,394 13 2,046,625 13 6(20) 1,484,678 9 1,441,002 9 515,412 3 774,832 5 2,584,914 16 2,366,630 15 6(21) ( 624,316) ( 4) ( 516,107) ( 4) 6(18) ( 38,101) - ( 38,101) - 8,756,981 55 8,863,061 55 365,785 2 333,867 2 9,122,766 57 9,196,928 57 11 $ 15,842,558 100 $ 16,236,935 100

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 2540 Long-term borrowings 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 Significant subsequent event 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, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars, except earnings per share amount)

Items

Year ended December 31 2023 2022 Notes AMOUNT % AMOUNT % 6(22) $ 9,099,248 100 $ 14,028,161 100 6(6)(27)(28) ( 6,639,209) ( 73) ( 11,130,533) ( 79) 2,460,039 27 2,897,628 21 6(27)(28) ( 131,266) ( 2) ( 91,642) ( 1) ( 562,361) ( 6) ( 629,075) ( 5) ( 1,407,405) ( 15) ( 1,733,623) ( 12) 12(2) ( 1,024) - ( 287) - ( 2,102,056) ( 23) ( 2,454,627) ( 18) 357,983 4 443,001 3 6(23) 195,961 2 81,015 - 6(24) 105,598 1 72,107 - 6(25) 8,281 - 115,171 1 6(26) ( 64,116) - ( 42,187) - 245,724 3 226,106 1 603,707 7 669,107 4 6(29) ( 193,809) ( 2) ( 181,066) ( 1) $ 409,898 5 $ 488,041 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 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 period

(Continued)

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ALTEK CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars, except earnings per share amount)

Items	YearendedDecember31 2023 2022 Notes AMOUNT % AMOUNT 6(15) $ 609 - $ 206 6(3) ( 30,903) - ( 27,284) 6(29) ( 122) - ( 41) ( 30,416) - ( 27,119) ( 99,992) ( 1) 389,001 6(29) 19,501 - ( 71,676) ( 80,491)( 1) 317,325 ($ 110,907)( 1) $ 290,206 $ 298,991 4 $ 778,247 $ 350,988 4 $ 456,742 58,910 1 31,299 $ 409,898 5 $ 488,041 $ 242,570 3 $ 716,327 56,421 1 61,920 $ 298,991 4 $ 778,247 6(30) $ 1.27 $ 6(30) $ 1.26 $	YearendedDecember31	YearendedDecember31
		2023	2022
				%
Other comprehensive income (loss) Components of other comprehensive income (loss) that will not be reclassified to profit or loss 8311 Gains on remeasurements of defined benefit plans 8316 Unrealised loss 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 (loss) 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 (loss) that may be reclassified to profit or loss 8360 Components of other comprehensive (loss) income that may be reclassified to profit or loss 8300 Total other comprehensive (loss) income for the year 8500 Total comprehensive income for the period 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)				- - -
				-
				3 -
				3
				3
				6
				3 -
				3
				6 -
				6
				1.67
			$	1.65

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, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

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 2023 Balance at January 1, 2023 Profit for the year Other comprehensive income (loss) for the year Total comprehensive income (loss) Appropriation of 2022 earnings Legal reserve Special reserve Cash dividends Share-based payment transactions Retirement of employee restricted shares Changes in ownership interests in subsidiaries Difference between consideration and carrying amount of subsidiaries acquired Non-controlling interest Balance at December 31, 2023	Notes								Equity attribu	Equity attribu	tableto owners of th	e parent	e parent				Non-controlling interest		Totalequity
			Commonstock		Capitalsurplus				Retained earnings			Otherequityinterest		Treasury stocks		Total
							Legal reserve		Special reserve		Unappropriated retained earnings	Currency translation differences of foreignoperations	Other
	6(21) 6(20) 6(16)(19)(21) 6(16)(18)(19)(21) 6(18)(19) 6(19)(31) 6(31) 6(21) 6(20) 6(16)(21) 6(16)(18)(19)(21) 6(31)	$2,792,011 - - - - - - - ( 3,831 ) - - - $2,788,180 $2,788,180 - - - - - - - ( 180 ) - - - $2,788,000		$2,392,215 - - - - - - 50,109 ( 4,917 ) ( 341 ) ( 390,441 ) - $2,046,625 $2,046,625 - - - - - - - ( 231 ) - - - $2,046,394			$1,418,410 - - - 22,592 - - - - - - - $1,441,002 $1,441,002 - - - 43,676 - - - - - - - $1,484,678	$651,556 - - - - 123,276 - - - - - - $774,832 $774,832 - - - - ( 259,420 ) - - - - - - $515,412		$ 2,266,140 456,742 165 456,907 ( 22,592 ) ( 123,276 ) ( 190,401 ) - - - ( 20,148 ) - $ 2,366,630 $ 2,366,630 350,988 487 351,475 ( 43,676 ) 259,420 ( 276,728 ) - - ( 4,201 ) ( 68,006 ) - $ 2,584,914		($ 653,974 ) - 286,704 286,704 - - - - - - - - ($ 367,270 ) ($ 367,270 ) - ( 78,002 ) ( 78,002 ) - - - - - - - - ($ 445,272 )	($133,385 ) - ( 27,284 ) ( 27,284 ) - - - 3,084 8,748 - - - ($148,837 ) ($148,837 ) - ( 30,903 ) ( 30,903 ) - - - 285 411 - - - ($179,044 )	($131,461 ) - - - - - - - - 93,360 - - ($38,101 ) ($38,101 ) - - - - - - - - - - - ($38,101 )	$8,601,512 456,742 259,585 716,327 - - ( 190,401 ) 53,193 - 93,019 ( 410,589 ) - $8,863,061 $8,863,061 350,988 ( 108,418 ) 242,570 - - ( 276,728 ) 285 - ( 4,201 ) ( 68,006 ) - $8,756,981		$790,853 31,299 30,621 61,920 - - - 6,221 - - 406,280 ( 931,407 ) $333,867 $333,867 58,910 ( 2,489 ) 56,421 - - - 6,746 - 4,201 24,141 ( 59,591 ) $365,785	$9,392,365 488,041 290,206 778,247 - - ( 190,401 ) 59,414 - 93,019 ( 4,309 ) ( 931,407 ) $9,196,928 $9,196,928 409,898 ( 110,907 ) 298,991 - - ( 276,728 ) 7,031 - - ( 43,865 ) ( 59,591 ) $9,122,766

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, 2023 AND 2022

(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 Net gain on financial assets and liabilities at fair value through profit or loss Interest expense Interest income Dividend income Share-based payment compensation cost Gain on disposal of property, plant and equipment Gain arising from lease modification 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 generated from operations Interest received Dividends received Interest paid Income tax paid Net cash flows from operating activities

Year ended December 31 Notes 2023 2022 $ 603,707 $ 669,107 6(7)(8)(9)(27) 187,632 208,092 6(10)(27) 267,287 190,110 12(2) 1,024 287 6(2)(25) ( 10,034 ) ( 4,417 ) 6(26) 64,116 42,187 6(23) ( 195,961 ) ( 81,015 ) 6(24) ( 3,814 ) ( 2,289 ) 6(16) 7,031 59,414 6(25) ( 290 ) ( 660 ) 6(25) ( 54 ) - 21,033 ( 21,037 ) ( 27,177 ) ( 2,217 ) 433,624 ( 726,198 ) 4,375 12,853 629,279 310,714 ( 3,224 ) ( 138,989 ) 1,810 ( 1,056 ) ( 87,862 ) 108,257 ( 376,828 ) ( 370,457 ) 99,384 244,717 11,832 26,156 ( 71,411 ) 4,109 ( 1,011) ( 1,735) 1,554,468 525,933 169,707 132,622 3,814 2,289 ( 58,923 ) ( 36,420 ) ( 109,982) ( 208,634) 1,559,084 415,790

(Continued)

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ALTEK CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2023 AND 2022

(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 disposals of financial asset at fair value through profit or loss Acquisition of financial assets at amortised cost Proceeds from repayments of financial assets at amortised cost 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 (Increase) decrease in guarantee deposits paid Net cash flows (used in) from 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 Increase (decrease) 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 financing activities Effect of exchange rate Net increase (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 2023 2022 ($ 30,325 ) $ - 281 - ( 1,769,836 ) ( 842,513 ) 1,238,885 1,330,726 - 1,292 3,588 1,566 6(32) ( 104,347 ) ( 134,922 ) 290 737 6(32) ( 44,826 ) ( 29,497 ) ( 2,685) 138 ( 708,975) 327,527 6(33) 13,005,984 16,934,296 6(33) ( 12,982,492 ) ( 17,231,296 ) 6(33) 1,197,843 3,856,240 6(33) ( 1,600,000 ) ( 4,060,000 ) 6(33) 900,000 500,000 6(33) ( 500,000 ) - 522 ( 278 ) 6(33) ( 18,838 ) ( 15,956 ) 6(20) ( 276,728 ) ( 190,401 ) - 93,019 ( 103,456) ( 931,407) ( 377,165) ( 1,045,783) ( 33,623) 293,286 439,321 ( 9,180 ) 6(1) 5,359,473 5,368,653 6(1) $ 5,798,794 $ 5,359,473

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, 2023 AND 2022

(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 11, 2024.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

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

New standards, interpretations and amendments endorsed by FSC and became effective from 2023 are as follows:

are as follows:
New Standards,InterpretationsandAmendments	Effective date by International Accounting Standards Board ("IASB")
Amendments to IAS 1, ‘Disclosure of accounting policies’ Amendments to IAS 8, ‘Definition of accounting estimates’ Amendments to IAS 12, ‘Deferred tax related to assets and liabilities arising from a single transaction’ Amendments to IAS 12, ‘International tax reform - pillar two model rules’	January 1, 2023 January 1, 2023 January 1, 2023 May 23, 2023

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 IFRS Accounting Standards as endorsed by the FSC

but not yet adopted by the Group

New standards, interpretations and amendments endorsed by the FSC and will become effective from 2024 are as follows:

New Standards,InterpretationsandAmendments	Effective date by IASB
Amendments to IFRS 16, ‘Lease liability in a sale and leaseback’ Amendments to IAS 1, ‘Classification of liabilities as current or non-current’ Amendments to IAS 1, ‘Non-current liabilities with covenants’ Amendments to IAS 7 and IFRS 7, ‘Supplier finance arrangements’	January 1, 2024 January 1, 2024 January 1, 2024 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.

(3) IFRS Accounting Standards issued by IASB but not yet endorsed by the FSC

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

Accounting Standards as endorsed by the FSC are as follows:
New Standards,InterpretationsandAmendments	Effective date by IASB
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between an investor and its associate or joint venture’ IFRS 17, ‘Insurance contracts’ Amendments to IFRS 17, ‘Insurance contracts’ Amendment to IFRS 17, ‘Initial application of IFRS 17 and IFRS 9 – comparative information’ Amendments to IAS 21, ‘Lack of exchangeability’	To be determined by IASB January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2025

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 MATERIAL 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, 2022
				100 100 100 100 77.70 100 100 71.43 100 100 100 100 100 - - 100 100 100 75 100 100 100 100 - - 100 100	- - - - Note 4 Note 5 - Note 6 Note 2 - Note 6 - Note 3 - Note 8 Note 8 - - - - - - Note 4 Note 4 Note 4 Note 7 Note 4 Note 7 - -

Note 6: Altek Optical (Cayman) Co., Ltd. and Altek Imaging Technology (Cayman) Co., Ltd. were dissolved and liquidated on October 26, 2022 by resolution of the board of directors, and it was dissolved with the approval of the competent authority in April 2023.

Note 7: Invested by Altek Medical Pte. Ltd.(original name：Altek Medical Holding (Cayman) Co., Ltd.) and established in first half of 2023. Note 8: It was established by Altek (Kunshan) Co., Ltd. by business division on December 19, 2023.

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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: None.

• (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.

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• (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 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.

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(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.

• 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.

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(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.

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.

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• 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.

• 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.

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(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.

• 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.

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• 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.

(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.

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(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.

• (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.

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• 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.

• (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’.

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(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.

• 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 and does not give rise to equal taxable and deductible temporary differences. 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.

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(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.

• 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.

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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 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) Government grants

Government grants are recognised at their fair value only when there is reasonable assurance that the Group will comply with any conditions attached to the grants and the grants will be received. Government grants are recognised in profit or loss on a systematic basis over the periods in which the Group recognises expenses for the related costs for which the grants are intended to compensate.

• (31) 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.

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(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, 2023, the carrying amount of inventories was $1,762,109.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

Cash and cash equivalents
Cash on hand Checking and demand accounts Time deposits Total	December 31,2023 1,283 $ 1,531,317 4,266,194 5,798,794 $	December 31,2022
		905 $ 2,108,395 3,250,173
		5,359,473 $

• 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
Asset Items Non-current items: Financial assets mandatorily measured at fair value through profit or loss Unlisted stocks Hybrid instruments Valuation adjustment Total	December31,2023 10,312 $ 30,705 82,990 124,007 $	December31,2022
		10,312 $ - 73,289
		83,601 $

• 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 Derivatives Hybrid instruments Total	For the year ended December31,2023 6,188 $ 281 3,565 10,034 $	For the year ended December31,2022
		4,417 $ - -
		4,417 $

• B. The Group has no financial assets measured at fair value through profit and loss as at December 31, 2023 and 2022, pledged to others.

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

Items Non-current items: Equity instruments Unlisted stocks Valuation adjustment ( Total	December31,2023 217,506 $ 179,045) ( 38,461 $	December31,2022
		223,080 $ 148,142)
		74,938 $

• 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 $38,461 and $74,938 as at December 31, 2023 and 2022, respectively.

• B. Amounts recognised in other comprehensive income in relation to the financial assets at fair value through other comprehensive income amounted to ($30,903) and ($27,284) for the years ended December 31, 2023 and 2022, respectively.

• C. The Group has no financial assets at fair value through other comprehensive income as at December 31, 2023 and 2022, pledged to others.

(4) Financial assets at amortised cost

Financial assets at amortised cost
Items Current items: Time deposit with maturity from three months to one year Non-current items: Time deposit with maturity over one year	December31,2023 390,169 $ 1,083,803 $	December31,2022
		352,755 $
		617,322 $

• 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 December 31, 2023 37,132 $	For the year ended December 31, 2022
		25,710 $

• 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
Notes receivable Accounts receivable Less: Loss allowance (	December31,2023 28,796 $ 1,742,473 $ 1,466) ( 1,741,007 $	December31,2022
		2,205 $
		2,179,250 $ 454)
		2,178,796 $

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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 91 to 180 days 181 to 360 days	December	Accounts receivable 1,449,054 $ 282,269 10,260 208 682 1,742,473 $ 31,2023	December	31,2022
	Notes receivable 28,796 $ - - - - 28,796 $		Notes receivable 2,205 $ - - - - 2,205 $	Accounts receivable
				1,577,521 $ 481,956 119,773 - -
				2,179,250 $

The above ageing analysis was based on past due date.

• B. As of December 31, 2023 and 2022, accounts receivable were all from contracts with customers. And as of January 1, 2022, the balance of accounts receivable from contracts with customers amounted to $1,451,400.

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

• D. As at December 31, 2023 and 2022, 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 $28,796 and $2,205, $1,741,007 and $2,178,796, 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		December31,2023
	Cost 1,201,372 $ 301,734 340,901 1,844,007 $	Allowance for valuation loss 48,719) ($ 21,956) ( 11,223) ( 81,898) ($ December31,2022	Bookvalue
			1,152,653 $ 279,778 329,678
			1,762,109 $
	Cost 1,671,512 $ 307,081 506,464 2,485,057 $	Allowance for valuation loss 47,325) ($ 8,044) ( 10,022) ( 65,391) ($	Bookvalue
			1,624,187 $ 299,037 496,442
			2,419,666 $

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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 December31,2023 6,622,702 $ 16,507 6,639,209 $	For the year ended December31,2022
		11,113,747 $ 16,786
		11,130,533 $

(Blank below)

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(7) Property, plant and equipment

At January 1 Cost Accumulated depreciation At January 1 Additions Reclassifications Depreciation charge Net exchange differences At December 31 At December 31 Cost Accumulated depreciation			2023

~35~

2022

At January 1 Cost Accumulated depreciation At January 1 Additions Disposals Reclassifications Depreciation charge Net exchange differences At December 31 At December 31 Cost Accumulated depreciation

Construction in progress and Buildings and equipment to Land structures Machinery Test equipment be inspected Others Total 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 $ 468,684 $ 1,901,362 $ 220,001 $ 6,792 $ 39,675 $ 15,793 $ 2,652,307 $ - 1,689 80,004 8,708 24,476 19,048 133,925 - - - - - 77) ( 77) ( - 838 36,567 1,309 39,221) ( 717 210 - 70,548) ( 82,954) ( 4,999) ( - 8,491) ( 166,992) ( - 38,672 3,268 21 608 391 42,960 468,684 $ 1,872,013 $ 256,886 $ 11,831 $ 25,538 $ 27,381 $ 2,662,333 $ 468,684 $ 2,768,758 $ 1,102,114 $ 138,366 $ 25,538 $ 398,066 $ 4,901,526 $ - 896,745) ( 845,228) ( 126,535) ( - 370,685) ( 2,239,193) ( 468,684 $ 1,872,013 $ 256,886 $ 11,831 $ 25,538 $ 27,381 $ 2,662,333 $

A. For the years ended December 31, 2023 and 2022, there was no capitalisation of borrowing costs 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 and depreciation charge are as follows:

Land Buildings Transportation equipment (Business vehicles) Land Buildings Transportation equipment (Business vehicles)	Carrying	amount
	December31,2023 December31,2022 99,502 $ 103,537 $ 44,784 22,372 - 2,294 144,286 $ 128,203 $ Depreciationcharge	December31,2022
		103,537 $ 22,372 2,294
		128,203 $
	For the year ended December31,2023 3,738 $ 15,275 2,294 21,307 $	For the year ended December31,2022
		3,775 $ 8,293 3,442
		15,510 $

• D. For the years ended December 31, 2023 and 2022, the additions to right-of-use assets were $38,003 and $6,062, 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 December31,2023 2,223 $ 5,273 275	For the year ended December31,2022
		1,115 $ 5,801 211

• F. For the years ended December 31, 2023 and 2022, the Group’s total cash outflow for leases were $24,386 and $21,968, 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

						2023
			Land		Buildings	and structures			Total
At January 1
Cost		$	587,427		$	1,062,736		$	1,650,163
Accumulated depreciation	(		4,522)	(		283,594)	(		288,116)
		$	582,905		$	779,142		$	1,362,047
At January 1		$	582,905		$	779,142		$	1,362,047
Depreciation charge	(		303)	(		25,239)	(		25,542)
Net exchange differences	(		152)	(		9,890)	(		10,042)
At December 31		$	582,450		$	744,013		$	1,326,463
At December 31
Cost		$	587,193		$	1,048,977		$	1,636,170
Accumulated depreciation	(		4,743)	(		304,964)	(		309,707)
		$	582,450		$	744,013		$	1,326,463
						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

~38~

• 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 December31,2023 100,543 $ 35,295 $	For the year ended December31,2022
		98,202 $
		35,917 $

• B. The fair value of the investment property held by the Group as at December 31, 2023 and 2022, amounted to $1,800,394 and $1,841,825, 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. Information about the investment property that was pledged to others as collateral is provided in Note 8.

(10) Intangible assets

Intangible assets
			2023			2022
At January 1
Cost		$	742,377		$	734,537
Accumulated amortisation	(		428,874)	(		242,903)
		$	313,503		$	491,634
At January 1		$	313,503		$	491,634
Additions			76,758			14,453
Reclassifications			41,972	(		9,091)
Amortisation charge	(		267,287)	(		190,110)
Net exchange differences	(		157)			6,617
At December 31		$	164,789		$	313,503
At December 31
Cost		$	638,166		$	742,377
Accumulated amortisation	(		473,377)	(		428,874)
		$	164,789		$	313,503
A. Details of amortisation on intangible assets are as follows:
		For the year ended			For	the year ended
		December31,2023			December31,2022
Operating costs		$	609		$	426
Operating expenses			266,678			189,684
		$	267,287		$	190,110

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

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(11) Short-term borrowings

Short-term borrowings	Short-term borrowings
Short-term notes and bills payable Long-term borrowings Type ofborrowings December31,2023 Bank borrowings Unsecured borrowings 2,234,704 $ Type ofborrowings December31,2022 Bank borrowings Unsecured borrowings 2,213,000 $ Commercial paper payable Less: Discount on short-term notes and bills payable Interest rate range Type ofborrowings Borrowing period Bank secured borrowings June 9, 2023 to June 9, 2025 Less: Current portion Type ofborrowings Borrowing period Bank secured borrowings November 21, 2022 to November 21, 2023 Less: Current portion		December31,2023		Interest raterange 1.74%~3.10% Interest raterange 1.44%~2.50% December31,2023 - $ - ( - $ - Interest raterange Collateral 1.9%~2.0% Note Interest raterange Collateral 1.80% Note	Interest raterange	Collateral None Collateral None December31,2022 400,000 $ 331) 399,669 $ 1.80%~1.90% December31,2023 900,000 $ - 900,000 $ December31,2022 500,000 $ 500,000) ( - $
		2,234,704 $			1.74%~3.10% Interest raterange
		December31,2022
		2,213,000 $
						(
	June 9, 2023 to June 9, 2025 Borrowing period
	November 21, 2022 to November 21, 2023

(12) Short-term notes and bills payable

- (13) Long term borrowings

Note：The collateral of long-term borrowings, please refer to Note 8.

~40~

(14) Other payables

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 Payable on equipment Payable on intangible assets Other	December31,2023 267,240 $ 346,960 1,189 29,487 16,068 75,240 2,492 329 42,618 135,879 917,502 $	December31,2022
		269,217 $ 255,231 1,207 39,541 16,576 56,811 2,010 957 10,686 137,834
		790,070 $

(15) Pensions

A. (a) The Company has 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 company 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	31,2023	December	31,2022
Present value of defined benefit obligations	($	53,151)	($	53,603)
Fair value of plan assets		49,856		48,688
Net defined benefit liability	($	3,295)	($	4,915)

~41~

(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 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				2023
	Present value of defined benefit obligations			Fair value ofplan assets	Net defined benefit liability
	53,603) ($ 697) ( 54,300) ( - 415) ( 833 418 - 731 53,151) ($		(	48,688 $ 633 49,321 191 - - 191 1,075 731) 49,856 $ 2022	4,915) ($ 64) ( 4,979) ( 191 415) ( 833 609 1,075 - 3,295) ($
		Present value of defined benefit obligations		Fair value ofplan assets	Net defined benefit liability
	51,430) ($ 308) ( 51,738) ( - 769) ( 2,464) ( 3,233) ( - 1,368 53,603) ($		(	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) ($

~42~

• (d) The Bank of Taiwan was commissioned to manage the Fund of the Company’s 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 Company has 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, 2023 and 2022 is given in the Annual Labor Retirement Fund Utilisation Report announced by the government.

• (e) The principal actuarial assumptions used were as follows:

The principal actuarial assumptions used were	as follows:
Discount rate Future salary increases	For the year ended December31,2023 1.20% 4.00%	For the year ended December31,2022
		1.30%
		4.00%

Assumptions regarding future mortality are set based on actuarial advice in accordance with published statistics and experience in Taiwan life insurance industry after 2023 and 2022. Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis was as follows:

December 31, 2023 Effect on present value of defined benefit obligations ( December 31, 2022 Effect on present value of defined benefit obligations (	Increase 0.25% Decrease 0.25% 1,030) $ 1,060 $ 1,121) $ 1,156 $ Discount rate	Increase 0.25% Decrease 0.25% 908 $ 889) ($ 1,002 $ 978) ($ Future salaryincreases

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.

~43~

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

• (f) Expected contributions to the defined benefit pension plans of the Company for the year ending December 31, 2024 amount to $1,385.

• (g) As of December 31, 2023, the weighted average duration of the retirement plan is 8 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	5,649 $ 13,059 18,782
	37,490 $

• 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 pension costs under defined contribution pension plans of the Group for the years ended December 31, 2023 and 2022, were $32,352 and $36,349, 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 $25,520 and $26,377, for the years ended December 31, 2023 and 2022, respectively.

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(16) Share-based payments

• A. For the years ended December 31, 2023 and 2022, the Group’s share-based payment arrangements were as follows:

arrangements were as follows:
Type of arrangement	Grantdate	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 January 11, 2022 July 6, 2022	2,196 2,030 86 1,000 1,910	3 years 3 years 3 years - -	Note Note Note Immediately vested Immediately vested

• 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.

• B. Restricted shares to employees:

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

		2023		2022
Shares not vested beginning balance		912		2,679
Shares vested	(	894)	(	1,384)
Shares forfeited - retired	(	18)	(	383)
Shares not vested ending balance		-		912

• (b) For the year ended December 31, 2023, the Company retrieved 18 thousand restricted shares because certain employees did not meet the vesting condition, and the change of registration has been completed.

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

~45~

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

Type ofarrangement	Grantdate	Share price (inNTdollar)	Exercise price (in NT dollar)	Expected price volatility	Expected option life	Expected dividends	Risk-free interest rate	Weighted average fair value per unit (inNTdollar)
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 January 11, 2022 July 6, 2022	22.80 $ 22.80 18.20 43.50 31.25	- $ - - 18.24 18.24	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	22.80 $ 22.80 18.20 25.26 13.01

• E. For the years ended December 31, 2023 and 2022, the subsidiary Altek Medical Pte. Ltd.’s ( Altek Medical Holding (Cayman) Co., Ltd. relocated to Singapore changed its name to Altek Medical Pte. Ltd.) share-based payment arrangements were as follows:

Type of arrangement	Grant date	Quantity granted (share in thousands)	Contract period	Vesting conditions
Plan for restricted shares to employee Plan for restricted shares to employee	November 2, 2021 Octorber 2, 2023	3,166 2,000	3 years 3 years	Note Note

Note: Employees have to pay to acquire those shares. The vesting condition is 1 to 3 years’ services or become vested under certain conditions.

The share-based payment transaction used the Black-Scholes option valuation model to estimate the fair value of the option.

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

Equity-settled	For the year ended December 31,2023 7,031 $	For the year ended December 31,2022
		59,414 $

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(17) Provisions

At January 1, 2023 Additional provisions Reversed during the period Exchange differences At December 31, 2023 Current Non-current	Warranty 186,453 $ 28,200 16,368) ( 31) ( 198,254 $ December31,2023 December31,2022 67,256 $ 49,839 $ 130,998 $ 136,614 $

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, 2023, the Company’s authorised capital was $5,000,000, consisting of 500,000 thousand shares of ordinary stock, and the paid-in capital was $2,788,000 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):

At January 1 Treasury stock transferred to employees Retired restricted shares to employees that did not meet the vesting conditions ( At December 31	2023 276,728 - 18) ( 276,710	2022 272,001 5,110 383) 276,728

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 (sharein thousands) 2,090 December Number of shares (share in thousands) 2,090 December	December	31,2023
				Carryingamount
The Company Name of company holdingthe shares	To be reissued to employees Reason for reacquisition			38,101 $
				31,2022
				Carryingamount
The Company	To be reissued to employees			38,101 $

(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

~47~

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.

At January 1 Employee restricted shares vested Retired restricted shares to employees that did not meet the vesting conditions At December 31			2023
	Share premium 1,914,073 $ 11,385 - 1,925,458 $	Treasury shares Restricted sharesto employees 120,936 $ 11,616 $ - 11,385) ( - 231) ( 120,936 $ - $ 2022		Total
				2,046,625 $ - 231) (
				2,046,394 $

At January 1 Changes in ownership interests in subsidiaries Treasury shares 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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(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.

• 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.

~49~

E. The appropriation of 2022 and 2021 earnings had been resolved at the shareholders’ meeting on June 21, 2023 and June 17, 2022. Details are summarised below:

Dividends per share Amount (inNTdollars) Legal reserve 43,676 $ Special reserve (Reversal) 259,420) ( Cash dividends 276,728 1.0 $ 60,984 $ 2022	2021	2021
	Amount 22,592 $ 123,276 190,401 336,269 $	Dividends per share (inNTdollars)
		0.7 $

The appropriation of 2022 and 2021 earnings were the same as that proposed by the Board of Directors on March 10, 2023 and March 10, 2022, respectively.

• F. The appropriation of 2023 earnings had been proposed by the Board of Directors on March 11 2024. Details are summarised below:

2024. Details are summarised below:
Legal reserve Special reserve Cash dividends	2023
	Amount 27,926 $ 108,904 193,697 330,527 $	Dividends per share (inNTdollars)
		0.7 $

For the aforementioned distribution of 2023 earnings, except for cash dividends which were resolved and approved by the Board of Directors on March 11, 2024, others were pending for approval at the shareholders’ meeting.

(21) Other equity items

Other equity items
Unrealised Foreign currency losses on Unearned translation valuation compensation Total At January 1 367,270) ($ 148,141) ($ 696) ($ 516,107) ($ Valuation adjustment - 30,903) ( - 30,903) ( Currency translation differences: -Group 78,002) ( - - 78,002) ( Retirement of restricted shares to employees - - 411 411 Share-based payment transactions - - 285 285 At December 31 445,272) ($ 179,044) ($ - $ 624,316) ($ 2023		2023
				Total

~50~

(22)	Operating revenue 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: 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 For the year ended For the year ended December 31,2023 December 31,2022 Revenue from contracts with customers 9,099,248 $ 14,028,161 $ For the year ended December31,2023 Asia Europe America Oceania Taiwan Total Revenue from external customer contracts 4,210,934 $ 1,796,820 $ 3,083,673 $ - $ 7,821 $ 9,099,248 $ Timing of revenue recognition At a point in time 3,984,830 $ 1,659,031 $ 2,877,931 $ - $ 3,991 $ 8,525,783 $ Over time 226,104 137,789 205,742 - 3,830 573,465 Total 4,210,934 $ 1,796,820 $ 3,083,673 $ - $ 7,821 $ 9,099,248 $ For the year ended December31,2022 Asia Europe America Oceania Taiwan Total Revenue from external customer contracts 9,508,602 $ 1,645,377 $ 2,846,806 $ 1,867 $ 25,509 $ 14,028,161 $ Timing of revenue recognition At a point in time 9,108,182 $ 1,591,190 $ 2,786,819 $ 1,867 $ 4,244 $ 13,492,302 $ Over time 400,420 54,187 59,987 - 21,265 535,859 Total 9,508,602 $ 1,645,377 $ 2,846,806 $ 1,867 $ 25,509 $ 14,028,161 $	Operating revenue 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: 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 For the year ended For the year ended December 31,2023 December 31,2022 Revenue from contracts with customers 9,099,248 $ 14,028,161 $ For the year ended December31,2023 Asia Europe America Oceania Taiwan Total Revenue from external customer contracts 4,210,934 $ 1,796,820 $ 3,083,673 $ - $ 7,821 $ 9,099,248 $ Timing of revenue recognition At a point in time 3,984,830 $ 1,659,031 $ 2,877,931 $ - $ 3,991 $ 8,525,783 $ Over time 226,104 137,789 205,742 - 3,830 573,465 Total 4,210,934 $ 1,796,820 $ 3,083,673 $ - $ 7,821 $ 9,099,248 $ For the year ended December31,2022 Asia Europe America Oceania Taiwan Total Revenue from external customer contracts 9,508,602 $ 1,645,377 $ 2,846,806 $ 1,867 $ 25,509 $ 14,028,161 $ Timing of revenue recognition At a point in time 9,108,182 $ 1,591,190 $ 2,786,819 $ 1,867 $ 4,244 $ 13,492,302 $ Over time 400,420 54,187 59,987 - 21,265 535,859 Total 9,508,602 $ 1,645,377 $ 2,846,806 $ 1,867 $ 25,509 $ 14,028,161 $
		9,099,248 $
		8,525,783 $ 573,465
		9,099,248 $
		Total 14,028,161 $ 13,492,302 $ 535,859 14,028,161 $

~51~

B. Contract liabilities

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

December	31,2023	December31,2022		January1,2022
Contract liabilities $	351,051	439,481 $	$	262,350
C. Revenue recognised that was included	in the contract liabilities at the beginning of the period
		For the year ended	For the year ended
		December31,2023	December31,2022
Revenue recognised that was
included in the contract liabilities
at the beginning of the period		275,483 $	$	200,471
Interest income
		For the year ended	For the year ended
		December31,2023	December31,2022
Interest income from bank deposits		158,786 $	$	55,274
Interest income from financial assets
measured at amortised cost		37,132		25,710
Other interest income		43		31
		195,961 $	$	81,015

(23) Interest income

(24) Other income

Other gains and losses For the year ended December31,2023 Rent income 60,052 $ Dividend income 3,814 Other income - others 41,732 105,598 $ For the year ended December31,2023 Gain on disposal of property, plant and equipment 290 $ Gain arising from lease modification 54 Net currency exchange (loss) gains 45) ( Net gains on financial assets at fair value through profit or loss 10,034 Other expenses 2,052) ( 8,281 $

For the year ended December31,2022 58,183 $ 2,289 11,635 72,107 $ For the year ended December31,2022 660 $ - 119,202 4,417 9,108) ( 115,171 $

(25) Other gains and losses

~52~

(26) Finance costs

Interest expense : Bank loan Lease liabilities Other	For the year ended December31,2023 59,405 $ 2,223 2,488 64,116 $	For the year ended December31,2022
		37,461 $ 1,115 3,611
		42,187 $

(27) Expenses by nature

Expenses by nature
Employee benefit expenses Employee benefit expenses Depreciation charges on property, plant and equipment Depreciation charges on right-of-use assets Depreciation charges on investment property Amortisation charges on intangible assets Wages and salaries Labour and health insurance fees Pension costs Other personnel expenses	For the year ended December 31,2023 1,563,180 $ 140,783 21,307 25,542 267,287 For the year ended December31,2023 1,395,231 $ 65,506 57,936 44,507 1,563,180 $	For the year ended December 31,2022 1,916,885 $ 166,992 15,510 25,590 190,110 For the year ended December31,2022 1,728,863 $ 71,161 62,767 54,094 1,916,885 $
			1,728,863 $ 71,161 62,767 54,094
			1,916,885 $

(28) Employee benefit expenses

• 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, 2023 and 2022, employees’ compensation was accrued at $76,140 and $89,798, respectively; directors’ remuneration was accrued at $25,380 and $29,933, respectively. The aforementioned amounts were calculated based on the Articles of Incorporation of the Company and recognised in salary expenses.

~53~

Employees’ compensation and directors’ remuneration for 2022 amounting to $89,798 and $29,933, respectively, as resolved at the meeting of Board of Directors were in agreement with those amounts recognised in the 2022 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.

(29) Income tax

• A. Income tax expense

• (a) Components of income tax expense:

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 (over) under estimation ( Total current tax Deferred tax: Origination and reversal of temporary differences ( Income tax expense	For the year ended December31,2023 190,617 $ 27,538 1,606 1,929) 217,832 24,023) 193,809 $	For the year ended December31,2022
		157,408 $ 2,688 11,563 2,262
		173,921
		7,145
		181,066 $

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

The income tax charged to other comprehensive income is as follows:
For the year ended December31,2023 Translation differences of foreign operations 19,501) ($ Remeasurements of defined benefit plans 122 19,379) ($	For the year ended December31,2022
	71,676 $ 41
	71,717 $

~54~

B. Reconciliation between income tax expense and accounting profit：

		For the year ended	For the year ended			For the year ended
		December31,2023			December31,2022
Tax calculated based on profit before
tax and statutory tax rate		$	248,798		$	237,090
Tax exempt income or expenses disallowed by
tax regulation	(		28,884)			6,398
Tax on unappropriated retained earnings			27,538			2,688
Change in assessment of realisation of
deferred tax assets	(		63,525)	(		74,428)
Effect from investment tax credits	(		24,562)	(		29,013)
Tax losses not recognised as
deferred tax assets			34,767			24,506
Prior year income tax (over) under estimation	(		1,929)			2,262
Tax paid outside of the territory of the Republic
of China			1,606			11,563
Income tax expense		$	193,809		$	181,066

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 of foreign operations Tax losses Investment tax credits Subtotal Deferred tax liabilities: Temporary differences: Gain on foreign investment under equity method Pension expenses Others Subtotal Total			2023	2023
		January1	Recognised in profit or loss
	42,775 $ 62,327 34,254 21,569 160,925 $ 488,077) ($ 1,960) ( 4,299) ( 494,336) ($ 333,411) ($		4,967 $ - 5,570) ( 6,746) ( 7,349) ($ 27,275 $ 202) ( 4,299 31,372 $ 24,023 $

~55~

Deferred tax assets: Temporary differences: Cost of after-sales service and other estimated expenses Currency translation differences of foreign operations Tax losses Investment tax credits Subtotal Deferred tax liabilities: Temporary differences: Gain on foreign investment under equity method Pension expenses Others Subtotal Total				2022	2022
		January1		Recognised in profit or loss	Recognised in other comprehensive income December 31 - $ 42,775 $ 71,676) ( 62,327 - 34,254 - 21,569 71,676) ($ 160,925 $ - $ 488,077) ($ 41) ( 1,960) ( - 4,299) ( 41) ($ 494,336) ($ 71,717) ($ 333,411) ($	December 31
	40,831 $ 134,003 30,814 22,981 228,629 $ 479,367) ($ 1,572) ( 2,239) ( 483,178) ($ 254,549) ($		1,944 $ - 3,440 1,412) ( 3,972 $ 8,710) ($ 347) ( 2,060) ( 11,117) ($ 7,145) ($			42,775 $ 62,327 34,254 21,569
						160,925 $
						494,336) ($
						333,411) ($

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

tax assets are as follows:
Qualifyingitems				December 31,2023
		Unusedtaxcredits		Unrecognised deferredtax assets	Expiry year
Research and development Research and development Qualifyingitems		12,428 $ 2,395 14,823 $		- $ - - $ December 31,2022	2024 2025
		Unusedtaxcredits		Unrecognised deferredtax assets	Expiry year
Research and development Research and development		17,968 $ 9,708 27,676 $		6,107 $ - 6,107 $	2023 2024

~56~

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

follows:
			December 31,2023
Year incurred		Amount filed/ assessed		Unusedamount		deferred tax assets	Expiry year
2019 2022 2023		187,895 $ 169,517 147,430 504,842 $					2029 2032 2033
Year incurred		Amount filed/ assessed		Unusedamount		deferred tax assets	Expiry year
2019 2022		187,895 $ 171,263 359,158 $		159,378 $ 171,263 330,641 $		76,820 $ 82,549 159,369 $	2029 2032

• 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 2021 have been assessed and approved by the Tax Authority.

(30) Earnings per share

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	For	theyear ended December 31,2023
	Amount after tax 350,988 $ 350,988 $ - - 350,988 $	Weighted average number of ordinary shares outstanding (share in thousands) 276,563 150 2,521 279,234	Earnings per share (in dollars)
			1.27 $
			1.26 $

~57~

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	Fo	r theyear ended December 31,2022	r theyear ended December 31,2022
	Amount after tax 456,742 $ 456,742 $ - - 456,742 $	Weighted average number of ordinary shares outstanding (share in thousands) 273,374 1,194 2,921 277,489	Earnings per share (in dollars)
			1.67 $
			1.65 $

(31) Transactions with non-controlling interest

• A. Altek International Investment Co., Ltd., a subsidiary of the Group, acquired shares from shareholders of non-controlling interests in June 2023 and June 2022, thus increasing the Group's shareholding ratio by 28.57% and 21.43%, respectively.

• B. Altek Medical Pte. Ltd., a subsidiary of the Group, issued restricted stocks to reward employees in December, 2023, and the Group's shareholding ratio was reduced by 2.59%.

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
		December31,2023			December31,2022
Non-controlling interests invested in cash		$	29,815		$	-
Consideration paid to non-controlling interests	(		73,680)	(		893,400)
(Increase)decrease in the carrying amount of
non-controlling interests	(		28,342)			484,982
Capital surplus	($		72,207)	($		408,418)

(32) Supplemental cash flow information

A. Investing activities with partial cash payments：

Investing activities with partial cash payments：
Acquisition of property, plant, and equipment Add: Payable on equipment at beginning of year Less: Payable on equipment at end of year ( Cash paid	For the year ended December31,2023 103,719 $ 957 329) 104,347 $	For the year ended December31,2022
		133,925 $ 1,954 957) (
		134,922 $

~58~

Acquisition of intangible assets Add: Payables at beginning of year Less: Payables at end of year ( Cash paid	For the year ended December31,2023 76,758 $ 10,686 42,618) ( 44,826 $	For the year ended December31,2022 14,453 $ 25,730 10,686) 29,497 $

(33) Changes in liabilities from financing activities

January 1, 2023 Changes in cash flow from financing activities Interest expenses Other non-cash items changes Impact of changes in foreign exchange rate December 31, 2023 January 1, 2022 Changes in cash flow from financing activities Interest expenses Other non-cash items changes Impact of changes in foreign exchange rate December 31, 2022		Short-term borrowings	Short-term notes and billspayable		Long-term borrowings (including current portion)		Guarantee deposits received	Lease liabilities 111,366 $ 18,838) ( 2,223 37,949 525) ( 132,175 $ Lease liabilities 118,535 $ 15,956) ( 1,115 6,441 1,231 111,366 $	Total
		2,213,000 $ 23,492 - - 1,788) ( 2,234,704 $ Short-term borrowings	399,669 $ 402,157) ( 2,488 - - - $ Short-term notes and billspayable		500,000 $ 400,000 - - - 900,000 $ Long-term borrowings (including current portion)		36,422 $ 522 - - 513) ( 36,431 $ Guarantee deposits received		3,260,457 $ 3,019 4,711 37,949 2,826) ( 3,303,310 $ 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 $

~59~

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

(3)Key management compensation
PLEDGED ASSETS The Group’s assets pledged as collateral are as follows: Salaries and other short-term employee benefits Post-employment benefits Share-based payments Total Pledgedasset Purpose Land and buildings Medium and long-term loans Investment property Medium and long-term loans	For the year ended For the year ended December31,2023 December31,2022 113,798 $ 93,030 $ 856 998 78 934 114,732 $ 94,962 $ Bookvalue	For the year ended December31,2022
		93,030 $ 998 934
		94,962 $
	December31,2023 210,574 $ 730,387 940,961 $	December31,2022
		212,743 $ 736,980
		949,723 $

8. PLEDGED ASSETS

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 2023 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 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.

~60~

(2) Financial instruments

A. Financial instruments by category

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 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	December31,2023 124,007 $ 38,461 $ 5,798,794 $ 1,473,972 28,796 1,741,007 68,885 35,953 9,147,407 $ December31,2023 2,234,704 $ - 1,240,588 917,502 900,000 36,431 5,329,225 $ 132,175 $	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 $

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

~61~

• 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, recognised 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:

Foreign Currency Amount (In thousands) (Foreign currency: functional currency) Financial assets Monetary items USD:NTD 52,681 USD USD:RMB 39,257 USD Financial liabilities Monetary items USD:NTD 47,198 USD USD:RMB 34,250 USD		December31,2023	December31,2023	December31,2023	December31,2023
		Exchange Rate 30.705 7.0827 30.705 7.0827	Book Value (NTD) 1,617,570 $ 1,205,386 1,449,215 $ 1,051,646	SensitivityAnalysis
				Effect on Extent of Profit or Variation (Loss) 1% 16,176 $ 1% 12,054 1% 14,492) ($ 1% 10,516) (	Effect on Other Comprehensive Income(Loss)
					- $ - - $ -

~62~

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 Rate 30.710 6.9646 30.710 6.9646	Book Value (NTD) 2,613,052 $ 2,384,447 2,536,953 $ 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)
				- $ - - $ -

• v. Total exchange (loss)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, 2023 and 2022, amounted to ($45) and $119,202, 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, 2023 and 2022 would have increased/decreased by $8,979 and $8,360, 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 $3,846 and $7,494, respectively, as a result of price change on equity investments 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 one yard with all other variables held constant, profit before tax for the years ended December 31, 2023 and 2022 would have increased/decreased by $7,837 and $6,783, respectively. The main factor is that changes in interest expense result in floating-rate borrowings.

~63~

(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 assets 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.

~64~

• 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, 2023 and 2022, the provision matrix is as follows:

December 31,2023 Expected loss rate Total book value Loss allowance December 31,2022 Expected loss rate Total book value Loss allowance	Up to 90 dayspast due	91 to180 days past due	181 to 360 dayspast due	Over 361 days	Total
	0.04% 1,770,379 $ 699 $ Up to 90 dayspast due	15%~20% 208 $ 208 $ 91 to180 days past due	30%~40% 682 $ 559 $ 181 to 360 dayspast due	100% - $ - $ Over 361 days	1,771,269 $ 1,466 $ Total
	0.02%~0.03% 2,202,492 $ 458 $	15%~20% - $ - $	30%~40% - $ - $	100% - $ - $	2,202,492 $ 458 $

viii. Movements in relation to the Group applying the simplified approach to provide loss allowance for contract assets and accounts receivable are as follows:

allowance for contract assets and accounts receivable are as follows:	s receivable are as follows:	s receivable are as follows:
Contract assets Accountsreceivable At January 1 4 $ 454 $ (Reversal of) impairment loss 4) ( 1,028 Effect of foreign exchange - 16) ( At December 31 - $ 1,466 $ 2023 Contract assets Accountsreceivable At January 1 - $ 170 $ Impairment loss 4 283 Effect of foreign exchange - 1 At December 31 4 $ 454 $ 2022	2023
		Accountsreceivable
		454 $ 1,028 16)
		1,466 $
	Contract assets - $ 4 - 4 $	Accountsreceivable
		170 $ 283 1
		454 $

(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.

~65~

• 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:

			December 31,2023	December 31,2023	December	December	31,2022
Fixed rate:
Expiring within one year		$	4,604,940		$		3,901,538
Expiring over one year			100,000				500,000
		$	4,704,940		$		4,401,538
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, 2023	Lessthan 1year			1 to 3 years		Over3 years
Non-derivative financial liabilities:
Short-term borrowings	$		2,234,704	$	-	$	-
Accounts payable			1,240,588		-		-
Other payables			917,502		-		-
Lease liabilities			20,916		24,483		105,411
Guarantee deposits received			-		36,431		-
Long-term borrowings
(including current portion)			-		900,000		-
December 31, 2022	Lessthan 1year			1 to 3 years		Over3 years
Non-derivative financial liabilities:
Short-term borrowings	$		2,213,000	$	-	$	-
Short-term notes and bills payable			399,669		-		-
Accounts payable			1,635,048		-		-
Other payables			790,070		-		-
Lease liabilities			16,840		19,146		91,236
Guarantee deposits received			-		36,422		-
Long-term borrowings
(including current portion)			500,000		-		-

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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.

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

• C. Financial instruments were 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 notes and 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, 2023 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Unlisted stocks Hybrid instruments Financial assets at fair value through other comprehensive income Unlisted stocks	Level 1 - $ - - - $	Level 2 - $ - - - $	Level3 89,789 $ 34,218 38,461 162,468 $	Total
				89,789 $ 34,218 38,461
				162,468 $

~67~

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 $

• (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, 2023 and 2022, 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, 2023 and 2022:

			2023			2022
At January 1		$	158,539		$	181,044
Purchases in the year			30,325			-
Gains recognised in profit or loss			9,753			4,417
Losses recognised in other comprehensive income	(		30,903)	(		27,284)
Proceeds from capital reduction in the year	(		3,588)	(		1,566)
Effect of exchange rate changes	(		1,658)			1,928
At December 31		$	162,468		$	158,539

• G. For the years ended December 31, 2023 and 2022, 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.

• 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:

(Blank below)

~69~

Financial assets at fair value through profit or loss Unlisted stocks Hybrid instrument -Convertible notes Financial assets at fair value through other comprehensive income Unlisted stocks Unlisted stocks	Fair value at December 31,2023	Valuation technique	Significant unobservableinput	Relationship of inputs to fairvalue
	$ 89,789 34,218 38,461 -	Market comparable companies Binomial model Net asset value Discounted cash flow	Price to earnings ratio multiple, price to book ratio multiple, discount for lack of marketability, control premium Discount rate 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 The higher the discount rate, the lower 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

~70~

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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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: None.

• E. Acquisition of real estate reaching NT$300 million or 20% of paid-in capital or more: None.

• F. Disposal of real estate reaching NT$300 million or 20% of paid-in capital or more: None.

• 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 4.

• H. Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more: Please refer to table 5.

• 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 6.

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Please refer to table 7.

(3) Information on investments in Mainland China

• A. The related information of investments in Mainland China: Please refer to table 8.

• B. Significant transactions, either directly or indirectly through a third area, with investee companies in Mainland China: Please refer to table 4 ~ table 6.

(4) Major shareholders information

Please refer to table 9.

14. SEGMENT INFORMATION

(1) General information

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.

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(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, 2023 and 2022 is as follows:

Asia Europe America Oceania Taiwan	Non-current Revenue assets 4,210,934 $ 1,834,391 $ 1,796,820 - 3,083,673 248,010 - - 7,821 2,167,256 9,099,248 $ 4,249,657 $ YearendedDecember31,2023	YearendedDecember31,2022	YearendedDecember31,2022
	Revenue 4,210,934 $ 1,796,820 3,083,673 - 7,821 9,099,248 $	Revenue 9,508,602 $ 1,645,377 2,846,806 1,867 25,509 14,028,161 $	Non-current assets
			1,840,509 $ - 263,199 - 2,362,378
			4,466,086 $

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

(7) Major customer information

Major customer information of the Group for the years ended December 31, 2023 and 2022 is as follows:

A B C D	Revenue	Revenue
	2,808,509 YearendedDecember31,2023 1,163,954 $ 1,656,411 1,340,037	YearendedDecember31,2022
		2,470,618 4,473,267 $ 2,735,547 901,535

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Table 1

Altek Corporation and subsidiaries Loans to other

For the year ended December 31, 2023

Expressed in thousands of NTD (Except as otherwise indicated)

No.	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance during the year ended December 31, 2023	Balance at December 31, 2023	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 granted to a single party （Note)	Ceiling on total loans granted (Note)
													Item	Value
0 1 2	Altek Corporation Altek (Kunshan) Co., Ltd. Altek International Investment Co., Ltd.	Altek Semiconductor Corporation Altek Optical Technology (Kunshan) Co. , Ltd. Altek Corporation	Other receivables- related party Other receivables- related party Other receivables- related party	Yes Yes Yes	400,000 $ 45,173 661,470	250,000 $ 43,352 -	- $ 43,352 -	2% 3% 0%	Reason for short-term financing Reason for short-term financing Reason for short-term financing	- $ - -	Operational need Operational need Operational need	- $ - -	N/A N/A N/A	- $ - -	990,661 $ 922,585 7,996,273	3,602,643 $ 1,845,169 7,996,273

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 (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 4: 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, 2023

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 2023 2023 drawn down with collateral company guarantees provided subsidiary parent company China Footnote 0 Altek Corporation Altek Semiconductor Note 2 $ 1,801,322 $ 162,125 $ - $ - $ - 1.80 $ 4,503,304 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, 2023

			December 31, 2023
Table 3 Securitiesheld by	Marketable securities	Relationship with the securitiesissuer	General ledgeraccount		As of December31,2023 Expressed in thousands of NTD (Except as otherwise indicated)
				Numberofshares	Bookvalue	Ownership (%)	Fairvalue
Altek Corporation Altek Medical Pte. Ltd. Altek Corporation Altek (Kunshan) Co., Ltd. Altek EMS (Kunshan) Co., Ltd.	Gianta Co., Ltd. - Common stock Profusa, Inc.-Convertible notes Hua-chuang Automobile Information Technical Center Co., Ltd. - Common stock CPEC Huachuang Private Equity (Kunshan) Enterprise (Limited Partnership) Aimore Acoustics Incorporation	Director None 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	89,789 $ 34,218 - 38,461 -	14.55% N/A 0.00% 1% 12.5%	89,789 $ 34,218 - 38,461 -

Table 3

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, 2023

Table 4

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 Pte. 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 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	3,083,815 $ 3,723,208 2,241,877 254,428 651,782 200,848	82% 100% 99% 75% 13% 9%	Net 120 days Net 75 days " " " "	Approximately the same price with third parties " " " " "	Note " " " " "	725,262) ($ 496,132) ( 512,874) ( 13,056) ( - 110,617) (	87% 100% 99% 55% 0% 18%

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

Table 4

Altek Corporation and subsidiaries

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

December 31, 2023

Table 5

Expressed in thousands of NTD (Except as otherwise indicated)

Creditor	Counterparty	Relationship with the counterparty	Balance as at December31,2023	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 Corporation Altek International Trading Co., Ltd. Altek Medical (Kunshan) Limited Altek Biotechnology Corporation	Parent-subsidiary The same ultimate parent company The same ultimate parent company The same parent company	725,262 $ 496,132 110,617 512,874	3.51 6.03 6.29 4.81	- $ - - -	N/A N/A N/A N/A	481,431 $ 483,393 46,210 379,140	- $ - - -

Table 5

Altek Corporation and subsidiaries

Significant inter-company transactions during the reporting periods

For the year ended December 31, 2023

Table 6

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 Pte. Ltd. Taiwan Branch " " " Altek Medical Pte. Ltd. " Altek (Kunshan) Co., Ltd. Altek Medical (Kunshan) Limited "	Altek International Trading Co., Ltd. " Altek (Kunshan) Co., Ltd. " Altek Medical (Kunshan) Limited " Altek Biotechnology 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) (3) (3) (3)	Purchases Accounts payable Purchases Accounts payable Purchases Accounts payable Purchases Accounts payable Purchases Accounts payable Purchases Accounts payable Purchases Purchases Accounts payable	3,083,815 $ 725,262 3,723,208 496,132 2,241,877 512,874 84,650 10,477 254,428 13,056 57,361 34,858 651,782 200,848 110,617	Net 120 days " Net 75 days " " " " " " " " " " " "	34% 5% 41% 3% 25% 3% 1% 0% 3% 0% 1% 0% 7% 2% 1%

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 6

Altek Corporation and subsidiaries Information on investees

Table 7

Expressed in thousands of NTD (Except as otherwise indicated)

For the year ended December 31, 2023

Investor	Investee	Location	Mainbusiness activities	Initial investment amount	Initial investment amount	Sharesheld as atDecember31,2023	Sharesheld as atDecember31,2023	Sharesheld as atDecember31,2023	Net profit (loss) of the investee for the year ended December31,2023	Investment income(loss) recognised by the Company for the year ended December31,2023	Footnote
				Balance as at December 31, 2023	Balance as at December 31, 2022	Numberofshares	Ownership (%)	Bookvalue
Altek Corporation " " " " Altek International Investment Co., Ltd. " " " Altek Semiconductor (Cayman) Co., Ltd. Altek Medical Pte. Ltd. " " " Altek Investment Corporation	Altek International Investment Co., Ltd. Altek Japan Corporation Altek International Holding (BVI) Co, Ltd. Altek Investment Corporation Altek Medical Pte. Ltd. Altek Lab Inc. Altek Semiconductor (Cayman) Co., Ltd. Altek Optical Technology (Cayman) Co., Ltd. Altek International Trading Co,. Ltd. Altek Semiconductor Corporation Altek Biotechnology Corporation Altek Medical (HongKong) Limited Altek Biotechnology Pte. Ltd. Altek Medical Sdn.Bhd. Ptek Corporation	British Virgin Islands Japan British Virgin Islands Republic of China Singapore U.S.A. Cayman Islands Cayman Islands Republic of Seychelles Republic of China Republic of China HongKong Singapore Malaysia Republic of China	Investment Buying and selling of electronic components Investment Investment Research and development, sales of medical electronic equipment and investment Collection of American digital imaging technology information and design services Investment Investment Intercompany transactions Research design and sales of ASIC Research and development, manufacture and sales of medical electronic equipments Investment Research and development, and sales of medical electronic equipments Manufacture and sales of medical electronic equipments Product development and design	$ 2,882,512 2,869 415,376 100,000 755,272 112,986 409,815 406,718 307,050 500,000 25,376 36,846 15,353 61,410 -	2,882,512 $ 2,869 415,376 100,000 755,272 112,986 188,751 406,718 307,050 350,000 115,376 36,846 - - 3,000	87,769,559 1,000 12,865,921 10,000,000 45,063,684 11,311,875 43,000,000 13,246,000 10,000,000 50,000,000 1,100,000 N/A 500,000 8,836,000 -	100 100 100 100 75.11 100 100 100 100 100 100 100 100 100 -	8,079,862 $ 10,063 1,281,674 100,235 966,729 65,445 107,227 135,908 238,749 103,752 857,561 97,520 12,699 53,136 -	9,634 $ 551 11,241 439 395,183 1,151 172,789) ( 3,752 5,513) ( 172,525) ( 229,132 28,357 2,865) ( 6,045) ( 13	15,362 $ 551 11,241 439 307,344 1,151 143,783) ( 3,752 5,513) ( 142,119) ( 178,036 22,033 2,226) ( 4,697) ( 13	Note 1 Note 2 Note 1 Note 2 Note 2 Note 2 Note 3 Note 2 Note 2 Note 2

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: Altek Biotechnology Corporation completed capital reduction amounted $90,000 on second quarter of 2023.

Table 7

Altek Corporation and subsidiaries

Information on investments in Mainland China For the year ended December 31, 2023

Table 8

Expressed in thousands of NTD (Except as otherwise indicated)

Investee in Mainland China	Main business activities	Paid-in capital	Investment method （Note 1）	Accumulated amount of remittance from Taiwan to Mainland China as of January1,2023	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year ended December 31,2023	Accumulated amount of remittance from Taiwan toMainland China as of December 31,2023	Net profit (loss) of investee for the year ended December 31,2023	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31, 2023 (Note 4)	Accumulated amount of investment income remitted back to Taiwan as of December 31,2023 Book value of investments in Mainland China as of December 31,2023
					Remitted to Mainland China Remitted back to Taiwan
Altek (Kunshan) Co., Ltd. (Note 2 and 5) 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 Jia Jing Business Management (Kunshan) Co., Ltd. (Note 5) Hong Jing Business Management (Kunshan) Co., Ltd. (Note 5)	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 Business management and non-residential real estate leasing Business management, housing leasing and property management	541,329 $ 153,525 260,993 423,729 429,870 46,058 30,705 26,011 580,939 400,700	2 2 2 2 2 2 2 2 2 2	1,381,725 $ 278,894 260,993 423,729 408,377 - - - - -	- $ - $ - - - - - - - - - - - - - - - - - -	1,381,725 $ 278,894 260,993 423,729 408,377 - - - - -	145,269 $ 10,446 25,425) ( 3,637 5,003 4,448) ( 28,322 43,027 - -	100 100 100 100 75 100 75.11 75.11 100 100	145,269 $ 10,446 25,425) ( 3,637 3,752 4,448) ( 22,006 33,432 - -	3,600,949 $ - $ 547,517 92,115 272,341 - 159,054 - 135,905 - 104,338 - 91,349 - 85,029 - 628,606 - 433,521 -

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. (3)Others.

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: It was established by Altek (Kunshan) Co., Ltd. on December 19, 2023.

Company name Altek Corporation

Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2023 $2,753,718

Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA) $3,020,563

Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA $5,254,189

Table 8

Altek Corporation and subsidiaries Information of major shareholders December 31, 2023

Table 9

Name of major shareholders	Shares	Shares
	Number of shares held	Holding percentage
Yitsang International Co., Ltd.	14,730,100	5.28%

Table 9